Federal Reserve Bulletin, 1915-08

FEDERAL RESERVE BULLETIN ISSUED BY THE FEDERAL RESERVE BOARD AT WASHINGTON AUGUST, 1915 WASHINGTON GOVERNMENT PRINTING OFFICE 1915 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FEDERAL RESERVE BOARD. EX OFFICIO MEMBERS. CHARLES S. HAMLIN, Governor. FREDERIC A. DELANO, Vice Governor. WILLIAM G. MCADOO, Secretary of the Treasury, PAUL M. WARBURG. W. P G. HARDING. Chairman. ADOLPH C. MILLER, JOHN SKELTON WILLIAMS, Comptroller of the Currency. H. PARKER WILLIS, Secretary. SHERMAN ALLEN, Assistant Secretary. M". C- ELLIOTT, Counsel. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

TABLE OF CONTENTS. Page. Work of the board 175 Earnings and expenditures of Federal reserve banks 176 The cotton situation -. 180 State bank membership in Federal reserve system 182 Gold settlement fund 183 Address by Mr. John Perrin, of the Federal Reserve Bank of San Francisco. 186 Address by Mr. D. C. Wills, of the Federal Reserve Bank of Cleveland 189 Clearance system, establishment of 192 Informal rulings of the board 211 Circular and regulations 215 Conference of bank examiners 217 Law department 218 General business conditions '. 225 Movement of principal assets and liabilities of Federal reserve banks 233 Gold imports and exports 236 Acceptances 240 Paper currency outstanding 241 Distribution of rediscounts 242 Resources and liabilities of Federal reserve banks. 246 Federal reserve agents' accounts 248 173 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FEDERAL RESERVE BULLETIN VOL. 1 AUGUST 1, 1915 No. 4 WORK OF THE BOARD. Three directors have been chosen by the Federal Reserve Bank of Atlanta, as follows: The work of the Federal Reserve Board dur- Mr. Sol. P. Wexler, of New Orleans, La. ing the month of July has included the follow- Mr. John EL Fulton, of New Orleans, La. ing principal elements: Mr. W. J. Davis, of Jackson, Miss. (1) The preparation and issue of new regu- One additional director remains to be chosen lations relating to trade acceptances, designed by the Federal Reserve Bank of Atlanta, and to facilitate the discounting of bills of exchange this director will act as manager of the bank. drawn against sales of goods and accepted by During the month the board has had under purchasers. very careful consideration the question of time (2) The preparation and issue of complete and conditions under which Federal reserve regulations (in conjunction with the Treasury banks should begin to act as fiscal agents of the Department) governing the redemption and United States Government in accordance with return of worn and mutilated Federal reserve the provisions of the Federal reserve act. notes. Considerable work has been done during the (3) Investigation of conditions as to the month by the committee on State banks and moving of crops, the holding of conferences re- the division of audit and examination in maklating thereto, and the issue of special instruc- ing the necessary arrangements for the admistions to Federal reserve agents thereon. sion of State banks applying for membership in the Federal reserve system, in arranging with (4) Review of conditions relating to the State bank authorities for the supplying of the granting of trustee and executor powers, and necessary information, and in investigating the the establishment of a definite policy regarding status of the various applicants for admission. the same. The procedure now in force with reference to (5) Study of methods for obtaining full admission is, in brief, as follows: information regarding the condition of mem- 1. After approval by the committee on adber banks, for use by Federal reserve banks in mission of State banks, a letter or telegram, passing upon rediscount applications, and the with the necessary instructions, is to be sent holding of conferences relating thereto. to the Federal reserve agent. Pursuant to the announcement made some 2. After receipt of an application from the months ago, the Board has compiled a com- Federal reserve agent, reports, digest, and plete tabular showing of the expenses and recommendation are to be submitted (a) to the earnings of the Federal reserve banks from the committee on admission of State banks for date of their organization to the close of busi- approval; (6) to counsel for approval as to ness on June 30, 1915, and presents the figures legal form of application and as to the legality in this issue (p. 176). of suggested conditions; (c) to.the Board for Further steps have been taken toward the final approval. organization of the New Orleans branch of the During the month of July members of the Federal Reserve Bank of Atlanta by electing Board have with its approval accepted invitadirectors and making tentative plans with re- tions to appear before various gatherings of spect to the undertaking of business. Three bankers and to address them on questions redirectors have been chosen by the Federal Re- lating to the Federal reserve system. This is serve Board, as follows: in pursuance of the policy of the Board of 'Mr. P. H. Saunders, of New Orleans, La. keeping in touch with the various organiza- Mr. Albert P. Bush, of Mobile, Ala. tions and informing them of the Board's atti- Mr. James E. Zunts, of New Orleans, La. tude as to pending problems. 175 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

176 FEDERAL EESEBVE BULLETIN". AUGUST 1,1915, EARNINGS AND EXPENDITURES OF FEDERAL RESERVE BANKS. Several months ago the Federal Reserve ings for the seven and one-half months since Board authorized the publication of a com- November 16, 1914, Current expenses for parative statement of earnings and expenses of June were, however, only $122,473.92, which all Federal reserve banks for the period ter- is less than 3 per cent in excess of the average minating at the close of business June 30, 1915, monthly current expenses of the banks to the banks having been opened on November June 30. These figures furnish a basis of 16, 1914. It was directed that the statement comparison between conditions at this time of earnings and expenses be published periodi- and the average for the entire period covered cally thenceforward. by the statements of expenses and earnings. Accordingly there is herewith presented a The statement, a complete detailed analysis comparative statement of earnings and ex- of which follows, shows average earnings for penses for the period November 16, 1914-June what may be roughly termed the first one-half 30, 1915. The classification employed was year of the operation of the system of 4.3 per submitted to the governors of reserve banks cent on capital, against an average percentage at their recent meeting in Chicago, on June 14, of current expenses to capital of 4.2 per cent. 1915, and has since then been informally con- The Federal Reserve Bank of Richmond reports sidered with other operating officers. 7.5 per cent of net earnings, by which is meant The statements of expenses and earnings of total earnings less current expenses, and the the 12 Federal reserve banks, submitted by Federal Reserve Bank of Atlanta earnings of the banks at the request of the Federal Reserve 6.1 per cent. The net earnings of the Federal Board as of June 30, 1915, show that the sys- Reserve Bank of Dallas for the same period are tem is paying current expenses and carrying 2.4 per cent. Gradual growth in the financial a surplus to its organization, equipment, and strength of the banks is seen in the fact that cost-of-notes accounts. The earnings of the for June earnings in excess of current expenses system from November 16, 1914, when the were shown by the Federal reserve banks of banks were opened, to June 30, 1915, were Boston and San Francisco, besides the three $918,588.59, or about $25,000 over current southern banks and the New York and Chicago expenses. During that period expenditures of banks, which show excess of earnings over curabout $1,777,000 were incurred, but of this sum rent expenses for the entire period under con- $378,922 was for organization expenses, sideration. . $202,136 for equipment, and $302,159 was the . I. EARNINGS. cost of preparing Federal reserve notes. These The total earnings of the Federal reserve expenditures should be distributed over a period banks from November 16, 1914, the day the of perhaps several years of operation. Current banks were opened for business, to June 30, expenses during the seven and one-half months 1915, amounted to $918,588.59. Of this total were $894,117. The first order placed for about 59 per cent was from notes discounted, Federal reserve notes was for $250,000,000. over 24 per cent from municipal warrants, a After consultation with the operating officers little over 10 per cent from acceptances, about of the Federal reserve banks a second order for 6 per cent from United States bonds, and less a similar amount was given, making the total than 1 per cent from miscellaneous, mainly of such notes prepared 8500,000,000. exchange, operations. The earnings of the system during the month Over 37 per cent of the total earnings are of June were $163,747.07, or more than one- credited to the three southern banks, the earnthird greater than the average monthly earn- ings of the Richmond bank being exceeded only Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

AUGUST 1,1915. FEDERAL RESERVE BULLETIN. 177 by those of the New York bank, whose paid-in II.—EXPENDITURES. capital is, however, almost 25 per cent in excess A—Current expenses. of the combined paid-in capital of the three southern banks. In all four banks, viz, New Of a total expenditure for the system of about York, Richmond, Chicago, and Atlanta, each $1,777,000 incurred to June 30, 1915, the curreport over $100,000 of total earnings for the rent expenses of the banks since November 16, seven and one-half months under discussion. 1914, constituted about 56 per cent. Over 63 These four banks, as well as Dallas, show an per cent of the current expenses of the banks excess of earnings over current expenses. went as compensation for personal services While nearly 60 per cent of the total earnings and over 55 per cent as salaries to officers and of all the banks is derived from rediscounts of the clerical staff of the banks. This percencommercial paper, this percentage is very close tage, while varying from bank to bank, shows, to 100 in the case of the three southern banks, however, but little variation by geographic and much less for the eastern banks, whose sections, the four eastern banks, for instance, principal earnings are from funds invested in indicating the same percentage of officers' and municipal warrants. This is particularly true clerks7 salaries as the four western banks, viz, of the New York bank, whose earnings from 55 per cent as against 53 per cent shown for the investments in the latter class of paper consti- three southern, more active, banks. Over 11 tuted over 60 per cent of its total earnings. per cent of the total current expenses is repre- The Boston and Philadelphia banks report sented by the item "Rent/* and about 7 per about 50 per cent and Cleveland over 42 per cent by the item "Printing and stationery." cent of all earnings from this class of business. The operating ratio of the banks, i. e., the per The western banks, including San Francisco, cent relation of the total current expenses to show, without exception, larger earnings from earnings shows a falling tendency, this ratio investments in United States bonds than from being 97 per cent for the period since Noveminvestments in municipal paper, which is issued ber 16, 1914, and less than 75 per cent for the mainly by eastern cities. Thus, the Chicago month of June. bank reports 25.6 per cent of its total earnings B—Organization expenses. under the head of United States bonds, as against 25.5 per cent under the head of " War- The organization expenses of the banks conrants"; St. Louis, over 16 per cent from in- sist in the first place of amounts contributed vestments in United States bonds, as against by the banks to defray the expenses of the Fedless than 5 per cent from warrants. Minneap- eral Reserve Board, the total for the period olis shows relatively larger earnings from war- since November 16 being $191,921.94, These rants, having purchased late in December of contributions, beginning with July 1, 1915, will last year a relatively large amount of short- be included among the current expenses of the term notes of the State of Minnesota. As a banks. Over $187,000 expended for local rerule, the western banks purchase these warrants quirements by the banks prior to November 16, through the eastern banks. Cleveland is the 1914, are also classed as organization expenses. only eastern bank to report any earnings under C—Equipment the head of United States bonds. Of the $92,000 earned from acceptances the share of Expenditures of a non-recurring character the eastern banks is over 73 per cent. Of the made in the purchase of furniture, safes, mawestern banks Chicago and San Francisco only chines, and the cost of installing fixtures, vaults, report substantial earnings from this class of etc., have been brought together under the business, a large portion of which comes to above common head. This expenditure rethem through the Federal Reserve Bank of sults in the acquisition of a more permanent New York. form of assets which should be spread as an Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

17.8 FEDERAL BESERVE BULLETIN. expense over the entire period of use, and not number of days in each of the three periods, merely over the first fiscal year. and the sum of the three products for each bank was divided by 227, the number of days from D—Cost of Federal reserve notes. November 16, 1914, to June 30, 1915. In this For similar reasons the cost of printing and manner a weighted average capital was obshipping the Federal reserve notes has been tained, which, it is believed, is sufficiently acset up separately and will be charged only in curate for the purpose of calculating the per part to the first year's expenditures. cent relations between earnings and capital and expenses and capital. These latter per- EARNINGS AND CURRENT EXPENSES RELATED centages were obtained by using the weighted TO AVERAGE CAPITAL. capital of each bank as divisor, and the earn- The earnings and current expenses of the sev- ings and expenses as dividends. The quoeral banks have been related,to the average cap- tients thus obtained were multiplied by the ital of these banks. This average was obtained fraction f -§-fby using for the periods of November 16, 1914, The following table shows the amounts of to February 1, February 2 to May 1, and May 2 capital used for each of the three periods, the to June 30,-the amounts of capital reported for weighted average capital, and the percentages -each bank as at close of business on November of earnings and expenses to the capital of each 19, February 4, and May 7, respectively. These reserve bank for the period November 16,1914, figures were multiplied by 78, 89, and 60, the to June 30, 1915: Earnings and current expenses of the Federal reserve banks related to their average capital. [In thousands of dollars.] Capital reported at close of business Federal reserve banks. No 19 v 1 . 4 1 . 9, on F F 1 e 9 r b i 1 . d 5 4 a . , ys. M 1 a 9 y 1 5 7 . , [OO c D O a te p ' X a s d i y t o ) s a . m l it- W a c v a e e p ig r i a h ta g t l e e . d e P o a e f c r r a n c c p i e u n i n r t g r a t s a e l . g n to e t P t o e o e f x r c p c c a u e e p n n rr i t s t e a e a n g s l t e . Percent. Percent. Boston 1,620 3,184 4,781 3,069 1.9 3.2 New York.... 3,322 6,633 9,944 1,446,093 6,371 4.3 3.2 Philadelphia.. 2,088 4,084 6,188 897,620 3 954 2.2 2.7 Cleveland 2,026 3,997 5,959 871,301 3 838 1.9 3.1 Richmond 1,089 2,072 3,252 464,470 2 046 11.6 4.1 Atlanta....... 787 1,427 2,257 323,809 1 426 11.6 5.5 Chicago.. 2,195 4,300 6,559 947,450 4 174 4.8 4.2 St. Louis , 935 1,824 2,774 401,706 1770 3.0 8.4 Minneapolis.., 808 1,602 2,345 346,302 1525 3.4 5.3 Kansas City.. 935 1,773 2,754 395,967 1744 2.2 6.5 Dallas 957 1,690 2,780 391,856 1726 8.8 6.4 San Francisco 1,296 2,537 560,521 2,469 3.5 4.7 Total... 18,058 35,123 53,487 7,743,691 34,112 4.3 4.2 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Earnings and expenditures of each of the Federal reserve banks prior to and since November 16,1914, to June SO, 1915. Boston. New York. Ph p i h la i d a. el- Cleveland. Richmond Atlanta. Chicago. St. Louis. Min l n is e . apo- K C a i n ty sa . s Dallas. Fra S n a c n isco. s f T y o s o r t t e t a h m ls e . I. Earnings, Nov. 16.1914. to Juno 30,1915: Bills discounted; $5,989.52 $28,212.43 $14,080.37 $18,163.77 $146,540.14 $102,631.57 $46,942.48 $24,788.02 $12,103.12 $12,464.15 $95,074.17 $34,685.82 $541,675.76 Acceptances 12,976.66 37,165.46 11,602.13 5,781.88 11,209.71 1,426.65 2,030.17 2,923.49 6,969.11 92,085.26 Investments- United States bonds 1,541.14 31,826.25 1,650.71 7,480.5G 6,894.68 8,331.31 57,724.05 Warrants 18,424.38 104,003.82 26,017.71 18,885.25 292.40 31,938.16 5,597.51 10,643.26 1,056.39 3,861.43 220,720.31 Sundry profits 63.21 1,115.65 1,480.30 169.18 453.75 184.58 2,827.94 11.55 75.48 .94 6,382.61 Total 37,453.80 170,497.36 53,180.71 44,541.22 147,280.29 102,816.15 124,744.54 33,474.44 32,332.59 23,338.71 95,075.11 53,847.67 918,588.59 • II. Current expenses, Nov. 16,1914, to June 30,1915: Federal advisory council (fees).. 310.00 338.54 380.00 250.00 160.00 60.00 283.60 300.00 2,0S2.14 Directors1 fees 6,377.85 5,480.00 2,970.00 1,610.00 2,2S0.00 4,575.00 1,620.00 2,720.00 1,915.00 2,110.00 960.00 2,140.00 34,757.85 Legalfeea 600.25 2,250.00 300.00 1,025.00 500.00 1,004.10 500.00 1,173.75 551.20 93.50 7,997.80 Salaries- Bank officers 18,216.60 39,299.89 21,617.76 18,600.16 16,502.87 13,860.07 31,250.02 34,170.83 17,253.31 16,820.82 19,498.25 23,066.67 270,057.25 Clerical stall 13,149.57 31,936.43 17,869.19 23,541.90 12,764.94 12,163.02 26,821.84 23,439.06 11,852.07 18,879.67 15,094.24 19,416.35 226,928.28 Special officers and watchmen 275.00 2,449.09 3,644.57 680.44 1,216.98 2,952.18 957.62 1,161.99 675.00 718.50 57.00 14,694.37 Other 2m. so 980.46 830.50 2,447.50 758.35 685.22 813.33 2,374.50 9,156.36 Traveling expenses- Directors. 1,199.02 2,175.55 950.84 2,000.24 1,542.98 1,389.55 1,478.58 768.59 532.53 3,259.23 1,116.80 168.00 16,587.91 Officers and clerks 1,087.74 926.40 365.55 1,725.81 810.83 1,429.63 I,5i6.79 2,020.30 1,452.02 1,192.50 552.83 2,702.10 15,818.50 w Per diem allowance of directors. 680.00 1,620.00 700.00 1,090.00 1,550.00 m. io 780.00 1,620.00 830.00 2,375.00 860.00 210.00 13,178.10 B T E R I T P n e o x e e s l l s p n u e e t t r p a g r o a g h r s a n e o s p c n a h e e e o a .. n . d .. p . r . e . m .. i . u ms . o .. n . 7 1 , , 7 6 6 8 1 3 5 1 4 1 3 4 3 7 1 . . . . . 5 3 8 9 8 6 5 6 6 7 26 1 , , 0 2 7 7 2 8 5 1 0 4 3 5 0 0 2 . . . . . 3 5 6 3 4 0 0 9 5 5 2 5 1 , , , 4 0 4 4 4 8 2 8 7 3 9 2 8 8 8 . . . . . 5 6 6 1 1 6 4 9 0 5 3 2 1 , , , 7 6 8 6 6 8 6 2 9 1 1 0 9 4 8 . . . . . 8 8 0 9 2 9 1 3 5 0 3 2 2 , , , 4 2 1 2 1 8 4 5 2 9 1 3 5 0 5 . . . . . 2 9 0 3 3 0 5 7 8 5 4 1 1 , , , 0 7 6 1 2 6 0 9 0 2 5 2 0 9 8 . . . . . 5 5 0 5 6 1 2 6 0 1 1 1 2 3 4 , , , 0 3 6 7 4 1 6 4 ? 3 5 6 J 4 0 . . . . . 2 6 1 3 3 4 6 0 9 5 1 3 0 , , 4 5 4 6 4 0 2 2 2 2 3 0 6 1 4 . . . . . 4 4 9 1 2 0 1 3 2 1 3 1 1 , , , 2 1 4 3 2 5 0 1 3 3 0 6 3 0 5 . . . . . 1 0 9 8 4 2 5 6 7 5 5 5 1 , , , 2 1 6 3 4 8 4 3 3 0 8 9 4 3 7 . . . . . 4 3 8 6 3 4 4 7 7 9 6 3 2 , , , 2 0 0 3 1 7 2 5 2 8 9 2 8 1 8 . . . . . 8 6 3 3 8 0 5 1 9 8 10 1 , , 5 3 2 2 3 5 2 G 4 3 0 5 7 7 5 . . . . 4 . 5 1 7 4 4 0 0 5 0 1 2 1 0 5 5 6 6 1 , , , , , 9 5 2 1 9 8 9 6 7 0 9 2 0 0 7 . . . . . 8 9 8 7 0 4 1 4 3 1 I w Li f g id h e t, l i h ty e a b t, o n an d d s power 8 4 2 8 1 5 . , 1 7 8 1 1,175.76 2,6 7 0 3 8 5 . .7 4 2 9 1,309.11 3 9 8 9 2 9 . . 5 4 2 7 4 3 5 5 4 . . 5 7 4 8 2,4 8 1 0 0 7 . .5 6 5 9 1,753.90 2,50 9 5 8. . 5 1 8 7 8 8 3 3 8 0 . . 5 3 0 7 4,394.27 1,2 1 S S 6 4 . . 9 35 2 2 3 0 , , 5 5 6 5 8 6 . . 4 11 7 .d Printing and stationery 4,384.99 5,369.23 2,720.04 7,167.35 1,523.86 2,270.39 8,784.10 7,301.84 3,508.13 7,256.25 8,187.26 3,017.16 62,423.60 Repairs and alterations 389.34 678.12 953.72 27.50 1,186.39 122.80 506.09 78.24 3,913.39 7,755.59 Another 3,006.36 5,492.01 1,396.82 0,087.80 2,139.52 1,570.40 4,637.07 945.48 779.10 2,351.98 2,115.45 2,112.31 32,634.30 Total 61,945.21 127,433.15 67,699.24 74,022.28 51,663.60 48,906.31 10S, 618.45 91,9S3.84 50,649.41 71,051.16 68,214.87 71,930.44 894,117.9G III. Current earnings, June, 1915... 10,121.45 19,928.84 7,820.39 7,640.77 | 30,207.10 16,918.30 17,G82.48 4,897.73 6,741.82 5,740.38 23,6S6.06 12,325.75 163,747.07 IV. Current expenses, June, 1915.... 8,683.33 17,240.20 9,262.38 12,087.01 8,063.94 7,802.31 13,236.30 10,802.74 • 7,253.90 10,228.93 10,172.96 7,639.92 122,473.92 V. Organization expenses: Assessments for general expenses of the Federal Reserve Board Nov. 10,1914, to June 30t1915 17,265.02 35,434.18 22,238.96 21,511.14 11,555.93 8,342.05 23,307.05 9,S48.55 8,557.98 9,879.48 10,163.92 13,817. OS 191,921.91 Miscellaneous expenses incurred prior to Nov. 16,1914 12,999.57 30,766.13 14,893.00 15.SG6.42 12,011.92 13,867.87 16,472.59 5,S54.30 13,204.70 15,60S. OS 14,556.13 20,809.41 187,001.02 Total 30,265.19 66,200.31 37,131.90 37,377.56 23,507.85 22,209.92 39,779.64 15,702.85 21,762.68 25,578.46 24,720.05 34,026.49 378,922.96 VI. Equipment: ... •— ., .. -;. Furniture and fixtures 9,455,79 0,963.99 4,20S.2S 4,632.44 3,702.71 1,160.99 9,290.30 9,S17.52 5,656.50 5,324.27 2,381.90 932.35 63,5S7.04 Vaults 9,532.80 6,900.00 15,105.35 15,071.41 115.00 46,784.50 Machines 552.84 3,930.75 5,479.60 3,390.77 7,037.00 3,039.61 0,879.68 6,762.20 1,591.25 11,184.70 3,365.02 53,22S.42 Other 9,382.89 4,561.14 910. 79 2,478. 75 370.54 49.00 14,056.28 6,724.38 38,536.77 Total 10,008.63 20,283.63 14,252.02 18,472.80 10,799.71 4,200.00 25, COS. 73 16,950.20 22,402.10 45,636,GG 9,221.28 ! 4,300.37 202,136.79 VII. Cost of Federal reserve notes... 20,297.51 09,983.44 27,798. (M 26,888.86 11,566.18 11,566.18 29,133.75 16,625.75 11,142.02 12,349.32 11,536.14 ; 17,271.32 302,159.11 CO Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

180 FEDERAL BESEBVE BULLETIN. AUGUST 1,1915. THE COTTON SITUATION. Subsequently a committee of the board held a conference at the Federal Reserve Bank of On June 30 the Federal Reserve Board, with New York on July 16, which was participated a view to informing itself thoroughly regarding in by a number of New York bankers having the situation in the cotton States and the probclose connection with the cotton States. The lems to be met in moving the cotton crop this general feeling as to the prospect for the comyear, appointed a special committee to invesing autumn was optimistic, the bankers taking tigate and report on the status. That the the view that all funds needed for crop moving Federal reserve agents might be advised of the would be readily forthcoming. desire of the Board and might furnish such data Mr. Harding has analyzed the cotton crop as were in their possession, Mr. W. P. G, Hardconditions now prevailing as compared with ing, member of the Board and chairman of the those of a year ago, as follows: special committee, issued the following letter to the Federal reserve agents in the cotton region: In view of the apprehension manifested by some of the southern farmers and business men The Federal Reserve Board, realizing the pos- regarding the marketing of the cotton crop now sibility of congestion of stocks of cotton this fall approaching maturity, it is well to make comdue to abnormal conditions in our export trade, parison between the conditions affecting the desires full information regarding the facilities cotton market that prevailed last August and in your district for warehousing and financing those existing at the present time. For the the cotton which would under ordinary condisake of greater clearness this comparison will tions be exported. The Board has, therefore, be made in parallel columns. appointed a committee to study the question and gather data on the subject. The Board August, 1914. July, 1915. feels that in view of the large surplus reserves The shock resulting from The war continues, the now held by the banks throughout the country the sudden outbreak of war number of belligerents bethere should be no difficulty, so far as the finan- between Great Britain, Rus- ing increased by the addisia, France, Servia, and tion of Turkey on the side of cial ability of the country is concerned, in pro- Japan on one side and Ger- the Teutonic allies and by viding for necessary advances upon that part of many and Austria-Hungary Italy on that of the Entente the crop which will eventually be shipped on the other created a finan- powers. abroad. It appears from data in hand that cial crisis throughout the Germany's and Austria's world and paralyzed ocean war ships confined in the the demand for our domestic manufactures of transportation at a time when North Sea, Baltic, and Adricotton goods is increasing, and it seems to the grain and other crops were atic. Their commerce-de- Board's committee that there is no occasion moving to the ports for ship- stroying cruisers in other whatever for a depression in the price of raw ment abroad. Bankers and seas have been either demerchants in the XJnited stroyed or interned. Gercotton such as was experienced last fall. The States owed England and man and Austrian merchant committee believes that arrangements should the Continent on current vessels interned in various be made to assure producers of cotton of the account about $450,000,000, ports throughout the world. cooperation of merchants and bankers in the Owing to lack of shipping The sea area surrounding proper handling of the crop. facilities this indebtedness the British Ieles declared a could not be liquidated in a war zone and blockaded by In this connection attention is called to the normal manner by export- German submarines. About estimate by the Department of Agriculture that ing commodities, and. in 90 per cent of all trans-Atlanmany cases gold settlements tic commerce carried in the South has a warehouse capacity of 9664 ; r were demanded, BO that the British bottoms. 000 bales. If proper use is made of this ca- excess of our gold exports Current indebtedness of pacity and of the loanable resources of the over imports from June 1 to America abroad entirely banks, including both members and nonmem- December 30,1914, amount- liquidated. Trade balance bers of the Federal Reserve system, a gradual ed to $156,287,254. in our favor for fiscal year Maturing grain crops in ended June 30 more than marketing of the crop will be entirely possible, the South insufficient for $1,000,000,000. Excess of and any danger of a repetition of last year's home consumption. fold imports over exports conditions will be averted. anuary 1, 1915, to June 30, The writer, as chairman of the board's com- 1915, $140,070,000. Moderate corn crop and Very large southern crop mittee, would be glad to have your views on good wheat crop in the of corn in sight, and inthis subject, and is anxious to secure your West. creased crops of other grains. cooperation in formulating plans to reassure Large corn and wheat crops and protect the farmers, merchants, and others in the West. Federal reserve banks Federal reserve banks in interested in our cotton-growing industry. not yet organized. operation. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

AUGUST l, 1915. FEDERAL RESERVE BULLETIN. 181 Cotton and stock ex- All exchanges doing ac- parently insurmountable obstacles, just as high changes closed, and all tive business in a normal prices paid for cotton abroad during the Civil financial centers in fear of way. War made blockade running a steady business. an avalanche of stocks, GradLiual absorption at adbonds, and mortgages re- vancing prices of American There seems to be no question that ample funds turned to this country by securities held in Europe. can be obtained to finance in a normal way a Europe for sale. Lack of Such sales by Europe not much larger volume of cotton than was taken ability oorr ddiissppoossiittiioonn to d"i scouraged* and' perh'aps care of last year, and that even if Germany and make loans on cotton. necessary as a basis for credits here for purchases of Austria-Hungary should be forced to suspend foodstuffs, cotton, and sup- cotton manufacturing entirely statistics show plies. that the mills of the United States, Great Brit- Interest rates throughout Money rates abnormally ain, Spain, Russia, Italy, Japan, China, and Inthe country abnormally low, and banks* generally high, and while there was report large surplus of dia have spindles sufficient to absorb every bale no longer a call loan mar- loanable funds. of cotton that is likely to be cultivated. ket, rates on what had been It should be noted that the reduction in call loans at 2 and 2£ per American cotton acreage this vear amounts to cent were advanced to 6 and 8 per cent. more than 5,000,000 acres, and that Egypt and Trade in textiles dull; Textile trade fairly good. India have also made radical reductions in cotdemand poor. Some complaint of lack of ton acreage. It is probable that the world's dyestuffs. Agitation for cotton crop, based on an average vield an acre, manufacture of dyes in this country. will be about 5,000,000 bales less than last year. General industrial depres- Improved business condi- Of course it is desirable that as broad a marsion, closing of mills, cur- tions; mills reopened; labor ket as possible for cotton be established. That tailment of production, and well employed. it is the earnest desire of the President, born in much labor without employment. the South and a resident of that section in Railroad earnings de- Railroad earnings in- youth, during the period of life when one's tencreased rapidly. creasing, with good pros- derest ties and most enduring friendships are Unusually large use of pects for the remainder of formed, to assist his native section in solving fertilizer, and heavy bor- the year. Steel mills acrowings on cotton crop in tive. Better business in the problems now confronting it, can not be advance of its preparation. coal and iron. doubted, as the South's cotton problem is es- Cotton acreage 37,400,000 Cotton acreage 31,535,000 sentially national. acres, which produced, in- acres. Estimates on grow- But it should be remembered that the Presicluding linters, approxi- ing crop run from 11,000,000 mately 17,000,000 bales. to 13,000000 bales, with the dent owes a higher duty to the South, to the ; probabilities favoring the whole country, and to mankind at this juncture lower figure. than the establishment of cotton prices. Seri- Under the most adverse conditions conceiv- ous complications between this country and any able, with demoralization in every money mar- great foreign power would certainly not enket, with high interest rates, with emergency nance cotton values. No man is as familiar currency being issued daily in large volume, with the great world problems of to-day and with enormous gold shipments abroad, with the relationship of this country to them as is crippled shipping facilities, without adequate the President, and he may be trusted to do his insurance protection, and with ocean freights duty as he sees it, regardless of private appeals three to five times normal, we began in August, or public clamor. 1914, to market a crop of nearly 17,000,000 bales Cotton, unlike grain, is a commodity the of cotton. Financial institutions, already hard market value of which depreciates in time of pressed and fearing all manner of unforeseen war, and the South as aproducer of that comcontingencies, were unable and unwilling to modity has suffered. The actual position of make advances on cotton. In addition to this cotton, however, is so much stronger than the southern farmers, who have this year was the case a year ago, and financial and other planted record-breaking food crops, were faced conditions are so very much more favorable, with a deficiency in home-raised foodstuffs, and that there can be no doubt that if the South were in many cases forced to sell cotton to pay will keep cool and will refrain from merely off pressing indebtedness and to secure ade- weakening its own position by unwise action, quate food supplies. the present nervousness regarding the market Attention is called to the fact that the high for the growing crop will soon disappear. prices for cotton now prevailing in Germany Even in the face of all the adverse condiand Russia, about 30 cents a pound, will at- tions during the last 12 months the average tract cotton to those countries in spite of ap- price of cotton has been about what might Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

182 FEDERAL RESERVE BULLETIN. AUGUST 1,1915, have been expected for a 17,000,000-bale crop In Pennsylvania, Mr. William Hargust, had there been no war, and there is every rea- second deputy attorney general wrote, in reply son to believe that the average price of cotton to a telegram from Secretary McAdoo, that he during the next 12 months will be higher. was unable to state positively whether or not The real question is, Will southern mer- State banks could subscribe for stock in a chants and southern bankers, and all others Federal reserve bank. interested in southern trade, cooperate in securing for the cotton producers the benefit The counsel for the Cleveland bank has filed of this average price, and will the cotton pro- an opinion that all State banks in Pennsylvania ducers themselves do their part? My knowl- can probably subscribe for stock in a Federal edge of southern character and of southern reserve bank though the question is not free business conditions justifies a confident belief from doubt. that an affirmative answer will be given. The cotton tragedy of 1914 will be succeeded The counsel of the Federal Reserve Bank of in 1915 by nothing more serious than a drama. Philadelphia has filed an opinion to the effect that it is probably all right as to trust companies located in Pennsylvania, but not as to other banks. State Bank Membership in Federal Reserve The attorney general of Oklahoma has filed System. an opinion to the effect that the laws of Okla- The following States have passed laws homa are not sufficiently clear to enable him expressly authorizing State banks to become to determine whether or not a State bank member banks: located in Oklahoma can subscribe for stock in a Federal reserve bank. Idaho. Missouri. South Carolina. Iowa. Montana, South Dakota. The attorney general of Colorado has filed an Kentucky. Nebraska. Texas. opinion stating that a strict interpretation of Maine. New Jersey. Utah. the laws of that State would prohibit State Massachusetts, New York. Virginia. banks from becoming members, but that such Michigan. North Dakota. Washington. laws were passed prior to the passage of the Minnesota. Ohio. Mississippi. Oregon, Federal reserve act and that the legislature In the following States there has been no could not have intended to prohibit State specific legislation, but the State authorities banks from becoming members of a Federal have ruled that State banks may subscribe for reserve bank. He predicts favorable action stock in the Federal reserve bank of the district by the Colorado Legislature, but we have no in which they are located: report that such action has been taken. In Florida and New Hampshire the State Alabama. Illinois. North Carolina. Arizona. Indiana, Rhode Island,3 authorities have made no ruling one way or the Arkansas. Kansas. Tennessee. other, but the counsel of the Federal Reserve California. Louisiana. Vermont. Bank of Atlanta has filed an opinion stating Delaware. Maryland, West Virginia. that trust companies but not State banks may Georgia. New Mexico,1 Wisconsin. subscribe for stock in a Federal reserve bank, In the following States the State authorities and the counsel for the Federal Reserve Bank have filed opinions to the effect that State of Boston has expressed his opinion to* the effect banks can not subscribe for stock in a Federal that the right of trust companies located in reserve bank: New Hampshire to subscribe for stock must Connecticut. Nevada, Wyoming. be determined by the charter of each individual trust company, there being no general incorpo- 1 As to trust companies but not as to other banks. J Only as to trust companies and not as to State banks. ration law for trust companies. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

AUGUST 1, 1915. FEDERAL RESERVE BULLETIN. 183 GOLD SETTLEMENT FUND, of having charges made against the account of any bank with the fund only upon specific au- The gold settlement fund has, since the issuthorization from such bank. It is adopted as ance of the last Bulletin, shown a notable in- a tentative measure. The board will be glad crease in gold deposits, which have now to have your views or suggestions as regards reached a net total of $50,300,000 (as of the matter. "It is not to be understood, however, that July 26). The number of transfers between f c the adoption of this plan is intended to do the banks has also been increasing. The first away with transfers between banks on the withdrawal from the fund was made on July books of the gold settlement fund. Such trans- 14, the Federal Reserve Bank of Chicago hav- fers should be made whenever occasion arises ing on that date requested that S2,000,000 in which a transfer of this kind will facilitate the transaction of the reserve bank7s exchange be paid to it through the subtreasury at Chior investment business and where the nature cago. Its telegram was filed at 10.30 a. m. 7 of the transaction between the banks is such and at 2.30 p. m. of the same day the Assistant that an immediate transfer of funds should be Treasurer of the United States at Chicago ad- made without waiting for the weekly settlevised the bank of his readiness to make the ment/7 payment requested. The transaction is an In proposing a plan for a gold-settlement excellent illustration of the mobility and ready fund such as that which is now in operation, the availability of the moneys held in the gold Preliminary Organization Committee pointed settlement fund. out, in a report of June, 1914, that, with the In order to meet the wishes of the Federal establishment of a central fund and weekly reserve banks, the Board has made provision settlements, the normal clearing effected by for the inclusion of overdrafts between the the interchange of ordinary business transac- Federal reserve banks in the weekly settle- tions would render unnecessary the transfer of ment, the following letter having been sent to large sums of money in the payment of balall banks on July 8; and the plan has been in ances arising between Federal reserve banks. operation at three weekly settlements with Although it is still very early to draw consatisfactory results: clusions as to the extent to which this clearing has been operative, it is interesting to ex- " Beginning with the weekly settlement of July 15th, you are requested to include in your amine the figures now available, covering 10 telegram of Wednesday evening the amounts of weeks of operations, with a view to ascertainoverdrawn balances in your accounts "Due to" ing the extent to which it has operated and to other Federal Reserve Banks and also in your which balances between the different banks accounts •"Due from77 other Federal reserve have served to extinguish each other. The folbanks. The overdrafts reported will be included in the weekly settlement, the figures lowing table gives the total clearings at each given by the bank reporting an overdraft m its settlement from May 20 to July 22, inclusive, account "Due from7' being used. That is to amounting in all to $231,996,000, and the bal- SSLJ, a bank which acknowledges an overdraft ances at these clearings ^mounting to §50,in its account with another bank arising from 496,000. its having issued drafts or made transfers to amounts m excess of the balance created by its Total remittances to the second bank, will be charged Settlement of— clearings. Balances. at the settlement with the amount which it acknowledges owing in its "Due from" account. 1915. This will of course be in addition to the amount May 20 $43,522,000 $6,382,000 which it now reports "Due to*7 the second J M u a n y e 2 3 7 .*.. . 1 1 8 9 , , 9 6 8 4 5 4 , , 0 0 0 0 0 0 5 3, , 9 4 0 3 1 3 , , 0 0 0 0 0 0 bank in the account arising from remittances J J u u n n e e 1 1 0 7 2 2 6 5 , , 4 3 5 5 8 4 , , 0 0 0 0 0 0 6 4 , , 4 6 5 2 0 5 , , 0 0 0 0 0 0 received from the latter. June 24 1 IS,419,000 2,405,000 Julvl 21,3S9,000 3,342,000 /'This plan, it is thought, will frequently JulyS 35,011,000 12,145,000 eliminate the necessity of special transfers on J J u u l l y y 2 1 2 5 1 1 7 7 , , 1 0 9 2 2 2 , , 0 0 0 0 0 0 3 2 , , 0 7 3 8 0 3 , , 0 0 0 0 0 0 the books of the gold settlement fund and will 231,996,000 50,496,000 at the same time continue the present practice Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

184 FEDERAL RESERVE BULLETIN. ADGDST 1,1915. Thus by the process of offsetting the amounts Considering the relatively short time which which each Federal reserve bank owes against the fund has been in operation and during the amount which the other banks owe it, the which the process of normal clearing has been payment necessary to settle the obligations is operative, this showing is very favorable, as only about 21.76 per cent of the total amount for a longer period, say of a year, the percentage of the obligations; but the operations of the of money transfer necessary to settle the total gold-settlement fund during the past 10 weeks obligations would probably be much smaller. show clearly that even this relatively small The experience of the past 10 weeks indicates transfer of funds does not have to be made in that a reserve bank which is a creditor at the full, as the net change in the ownership of the clearings one week may be and often is a moneys comprising the fund, shown in the fol- debtor the following week; and this suggests lowing table, has been only $12,054,000, or the conclusion that during a period of a year, approximately 5.2 per cent of the total obli- in which the various factors affecting movegations which have been settled through the ments of money and exchange shall have comfund. pleted a cycle, the relative change in the ownership of the fund will be even smaller in T de o p ta o l s i n t e s. t J B u a l l y a n 2 c 2 e , , Increase. Decrease. proportion to the total transactions, although 1915. just how small can more accurately be deter- Boston $3,230,000 $7,707,000 $4,477,000 Ne^rYork 15,000,000 9,651,000 $5,349,000 mined from the experience of the coming year. Philadelphia 3,500,000 171,000 3,329,000 Cleveland 2,630,000 4,256,000 1,626,000 A continuation of the summary of trans- Richmond 2,320,000 2,812,000 492,000 Atlanta 260,000 1,304,000 1,044,000 actions given in the last issue of the Bulletin Chicago 5,770,000 9,329,000 3,559,000 St. Louis 3,220,000 1,657,000 1,563,000 follows, the form having been slightly changed Minneapolis 1,000,000 1,187,000 is7,"666" Kansas City ,.. 3,480,000 3,611,000 131,000 in order to facilitate the inclusion of figures Dallas 3,160,000 3,698,000 538,000 San Francisco 2,830,000 1,017,000 1,813,000 for gold withdrawals and transfers between Total 46,400,000 46,400,000 12,054,000 12,054,000 Federal reserve banks. Gold settlement fund—Summary of transactions June 17,1915, to July 82,1915. Gold— Transfers— Settlement of June 24,1915. Balance in Federal R o e f— serve Bank J B u s a t n a l e a t e n 1 m c 7 e , e 1 l 9 n a 1 t s , 5 t . d W ra i w th n - . Deposited. From— To— de N b e it t s. d T e o b t i a ts l . c T re o d t i a ts l . cr N ed e i t ts. f c u J l u n e 1 d n a 9 e r 1 i a 5 n 2 f . g 4 te , , r Boston $3,574,000 5200,000 , 8355,000 $2,841,000 $2,486,000 $3,419,000 N Ph e i w la Y de o l r p k hia 3 1. , 7 5 8 9 0 9 0 0 0 0 0 0 917,000 3 2 , , 4 5 7 1 9 2 , , 0 0 0 0 0 0 4 1 , , 3 5 5 9 8 5, , 0 0 0 00 0 8879,000 4,4 8 7 6 8 3 , , 0 0 0 0 0 0 C R l i e c v h e m la o n n d d.. • 2 2 , , 4 6 1 9 6 5 0 0 0 0 0 0 •: $600,000 10 7 7 , , 0 0 0 0 0 0 7 1 1 7 7 1 , , 0 0 0 0 0 0 1 6 6 1 4 0 , , 0 0 0 0 0 0 3 2, , 3 2 0 8 9 8 , , 0 0 0 0 0 0 Atlanta 1,749 000 168,000 417,000 249,000 1 581,000 Chicago 5,013 000 528,000 3,982,000 3,454,000 4,485,000 St Louis 1,869 000 2,928,000 3,172,000 244,000 2,113,000 1,286 000 183,666 339,000 156,000 1,103,000 Kansas City 2,514 000 562,000 1,198,000 636,000 3,150,000 Dallas.....' 1,622 000 305,000 951,000 646,000 2,268,000 San Francisco 1,253,000 570,000 $200,000 £46,666 166,000 26,000 1,483,000 Total 29,370,000 1,170,000 200,000: 200,000 2,405,000 18,419,000 18,419,000 2,405,000 30,540,000 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

AUGUST 1, 1915. FEDERAL RESERVE BULLETIN. 185 Gold settlement fund—Summary of transactions June 17,1915 1 to July gg t 1915—Continued. Gold. Transfers. Settlement of July 1,1915. Fed B er a a n l k R o e f s — erve J B u s a t n a l e a t e n 2 m c 4 e ,1 e l 9 n a 1 t s , 5 t . d W ra i w th n - . Deposited. From— To— Net debits. d T e o b t i a ts l . c T re o d t i a t l s. Net credits J B f u c u a l l n e l y a d a n 1 r c a , i 1 n e f 9 t g e 1 U , r 5. Boston 53,419,000 $2,845,000 $3,243,000 $398,000 $3,817,000 4,478,000 $450,000 §2,572,666 7,170,000 4,598,000 2,356,000 Philadelphia 863,000 $1,000,000 41,000 3,095,000 3,054,000 1,822,000 Cleveland 3,288,000 123,000 355,000 232,000 3,520,000 Richmond 2,309,000 300,000 680,000 706,000 86,000 2,095,000 Atlanta 1,581,000 403,000 462,000 59,000 1,640,000 Chicago 4,485,000 30,000 3,399,000 4,721,000 1,322,000 5,837,000 St. Louis 2,113,000 729,000 2,830,000 2,101,000 1,384,000 Minneapolis.. 1,103,000 269,000 273,000 4,000 1,107,000 Kansas City 3,150,000 438,000 990,000 552,000 3,702,000 2,268,000 134,000 779,000 645,000 2,913,000 San Francisco 1,483,000 — .. $480,000 3,000 47,000 44,000 1,047,000 Total 30,540,000 1,300,000 480,000 480,000 3,342,000 21,389,000 21,389,000 3,342,000 31,840,000 Balance, Gold. Transfers. Settlement of July 8,1915. Balance in Fed B er a a n l k R o e f s — erve sta J t u 1 l e 9 a l m y 1 s 5 t e 1 . n , t, d W ra i w th n - . Deposited. From— To— de N b e i t ts. d T e o b t i a ts l . c T re o d t i a t l s. cr N ed e i t ts. f c u J l n e 1 u d a 9 l r 1 y a 5 i n 8 . ft g , e , r Boston . 53,817,000 $2,818,000 $5,475,000 $2,657,000 $0,474,000 New York . 2,356,000 $9,000,000 $10,510,000 18,018,000 7,508,000 846,000 Philadelphia . 1,822,000 863,000 5,734,000 4,871,000 959,000 Cleveland 3 520 000 50,000 144,000 207,000 63,000 3,633,000 Richmond . 2,095,000 951,000 1,215,000 264,000 2,959,000 Atlanta . 1,640,000 193,000 554,000 361,000 1,447,000 Chicago 5 837.000 3,334,000 11,465,000 8,131,000 13,968,000 St. Louis . 1384,000 416,000 2,490,000 2,080,000 968,000 Minneapolis 1 107 00n 61,000 271,000 210,000 1,317,000 D Ka a n ll s a as s ' . C .. it . y ..... "" . 3 2 ' , 7 9 0 1 2 3 , , 0 0 0 0 0 0 163,000 4 36 0 4 7 ,f0 0 0 0 0 0 2 6 4 1 4 3 , , 0 0 0 0 0 0 249,000 3 3 , , 5 1 3 6 9 2 , , 0 00 0 0 0 San Francisco . 1,047,000 130,000 701,000 571;000 1,618,000 Total 31,840,000 9,050 000 12,145,000 35,011,000 35,011,000 12,145,000 40,890,000 Gold. Transfers. Settlement of July 15,1915. Balance in Federal Reserve la B s a t l s a t n a c te e - fu c n le d a r a in ft g e , r Bank of— m 8 e , n 1 t 9 , 1 J 5 u . ly d W ra i w th n - . Deposited. From— To- Net debits. d T e o b t i a ts l . c T re o d t i a t l s. cr N ed e i t ts. Ju 19 ly 1 5 1 . 5, B Ne o w st Y on o . rk .. ..... !""." 16,4 8 7 4 4 6 , , 0 0 0 0 0 0 *i5,*666,'66o* $ 9 2 6 0 2 0 , , 0 0 0 0 0 0 "$333," 666' $ 5 2 , , 1 4 4 7 4 8 , , 0 0 0 0 0 0 $ 4 3 8 ,4 1 4 1 5 , , 0 0 0 0 0 0 $967,000 $ 6 7 , , 4 6 7 4 5 1 , , 0 0 0 0 0 0 Philadelphia 959,000 500,000 575,000 2,026,000 1,451,000 884,000 Cleveland 3,633,000 60,000 173,000 '831,000 658,000 4,351,000 Richmond 2,959,000 320,000 951,000 1,106,000 155,000 3,434,000 Atlanta 1,447,000 522,000 506,000 64,000 1,511,000 Chicago " 13,968,000 "$2,~666"666" 'MY.'.""'.'. 46," 000* *i,*743*666' 2,971 000 1,228,000 10,271,000 St. Louis """. 968,000 ****42O,"666" 132,000 1,949,000 1,817,000 1,256,000 Minneapolis...*"... 1,317,000 $179,000 24,000 121,000 97,000 1,235,000 460,000 . 618,000 158,000 3,697,000 D Sa a n l l F a r s a . n .. c . i . s . c .. o.. "... 3 1 , , 1 6 6 1 2 8 , , 0 0 0 0 0 0 150,000 "1*629*666" 48 5 9 , , 0 0 0 0 0 0 2 9 4 3 5 3 , ,0 0 0 0 0 0 4 2 4 6 4 0 , , 0 0 0 0 0 0 3,7 8 5 2 6 9 , , 0 0 0 0 0 0 Total 40,890,000 2,000,000 6,450,000 1,208,000 1,208,000 2,783,000 17,192,000 17,192,000 2,783,000 45,340,000 Balance Gold.- Transfers. Settlement of July 22,1915. Balance in Fed B e a ra n l k R o e f— serve la J s m u 1 t l 9 e y s 1 n t 5 1 a t . 5 , te , - d W ra i w th n - . Deposited. From— To- de N b e i t ts. d T e o b t i a ts l . c T re o d t i a t l s. cr N ed e i t ts. f c u J l n u e 1 d l a 0 y r 1 i a 5 2 n f . 2 g te , , r A 5 C M S N C R B P t h h l o t i e S . i e l c i n i w s a c v L l h t n a S a n e o o m e g d l t n Y u a a a o . e i o n p 0 s l o n p d o " 1 r h l d " k i i s . a . . " . . .. . ^ .;; " : " ;; * .. ; " . ; . 1 $ 3 3 4 3 1 1 1 0 6 7 , , , , , , , , , 6 7 3 4 2 2 5 2 6 8 8 4 9 5 5 3 7 3 1 5 4 2 8 7 7 6 1 4 1 5 1 6 9 1 4 5 , , , , , , , , , , , , 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 . " . "'$566*666* 1 $ ,0 5 6 0 0 0 , , 0 0 0 0 0 0 1 $ ,0 1 0 8 0 3 , , 0 0 0 0 0 0 *$i,'is3*666' $1,2 9 6 2 1 4 8 4 9 2 8 4 3 6 2 5 2 * , , , , , , 0 0 0 0 0 0 6 0 0 0 0 0 0 6 0 6 0 0 0 0 0 " $ 3 2 2 1 1 3 , , , , , , 9 1 7 2 3 2 3 5 4 6 1 6 4 3 5 9 5 8 9 1 6 9 2 6 8 9 4 6 4 9 9 0 6 9 , , , , , , , , , , , , 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 • $ 5 1 1 1 3 , , , , , 9 2 6 3 5 8 6 4 4 7 1 1 5 2 0 5 2 3 0 8 1 3 7 1 5 2 4 5 6 1 4 6 8 6 2 3 , , , , , , , , , , , , 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 " 1,9 4 $ 4 1 9 4 0 6 2 3 2 1 6 8 , , , , , 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 $ 3 3 9 2 9 1 1 4 1 1 7 , , , , , , , , , , , 6 6 3 8 6 1 3 2 6 0 7 1 9 1 2 1 5 8 5 0 5 1 0 7 8 9 1 2 1 6 7 7 7 7 4 1 , , , , , , , , , , , , 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 San • F r T a o n t c a i l sco 45,340,000 500,000 1,560,000 1,183,000 1,183,000 3,030,000 17,022,000 17,022,000 3,030,000 46,400,000 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

186 PEDEKAL RESERVE BULLETIN, AUGUST 1, FEDERAL RESERVE BANK OF SAN Nor does a bank lend money. The truth of this state- FRANCISCO. ment is easily illustrated. Suppose that .A and B are customers of the same bank, and that A owes B §1,000. A Mr, John Perrin, chairman of the board of negotiates a loan from the bank, receives 50 $20 gold pieces as the proceeds of his loan, and cancels his debt to B by directors of the Federal Reserve Bank of San paying this gold to him. B then redeposits these gold Francisco, delivered the following address pieces in the same bank. Can it be contended that the before the convention of the National Associa- bank has loaned the gold pieces to A? It still has his note tion of Supervisors of State Banks, Oakland, for $1,000 running at interest, and it also has the gold Cal., May 28, 1915. pieces in its possession.; AVhat really has happened is that A's promise to pay $1,000 has been shifted from B to the A State banking department is an expression on the part bank. The money used in the transaction was simply the of the State that the prosperity of its commerce and indus' instrument for transferring the credit. A check or a simple try is of paramount material importance, and because o entry on the books of the bank would have been simpler this, that supervision should be had of banking to make and safer and would have served the same end. certain that banking methods will be such as to conduce If a bank does not lend money, what is the real nature most to the development and maintenance of that pros- of a loan transaction? It is this: A borrower gives to the perity. If a surer safeguarding and a broader prosperity bank his promise to pay money at a future date and refor that commerce and industry may be had through the ceives in exchange the bank's promise to pay money on development of one great banking system, unified under demand. It is an exchange of promises to pay money. Federal control, the State's interest will obviously lie that The bank's promise is usually given in the form of a deposit way. credit and the borrower thereby acquires the same right Banking is not a separate business of itself. It is only to draw upon the bank for any part or all of the amount an incidental part of the great commercial mechanism. as if he had bought the right to draw with a deposit of gold Banks have no independent right of existence; their or checks. service to commerce is the sole measure of the justification What I have sought to make clear is that a bank's busiof their being. It is therefore in the interest both of banks ness deals very little with money but to the extent of more and of general business that the way should be opened for than 90 per cent deals with promises to pay money, banks to render greatest service. To restrict them in the which is another way of describing credit—the wonderful opportunity of sendee, whether by limitation of legitimate and economical device which has made large commerce activity or by debarring from assured support, is to handi- possible, cap commerce. A bank keeps in money only such small percentage of its deposit liabilities as experience demonstrates is neces- Banks are of two general classes, commercial and savings. sary to enable it to make good its promises to pay deposi- This discussion will refer to commercial banks, and I trust tors in money when they demand it. This is its money that I may be pardoned if I ask this gathering of banking reserve. experts to bear with me for indulging in some very elementary statements; these will be preliminary to certain A BANK'S FUNCTION. conclusions which I hope may not seem illogical. A bank's function is to gather the funds temporarily unemployed and lend them for short periods to those who The transactions of a retail merchant are in far larger can use them profitably. Thus, half a dozen people, each proportion money transactions than are those of a bank. having a temporary surplus of $100, would, through the The peanut vendor's transactions, for instance, are oneinstrumentality of the bank, provide the grain dealer with half peanuts and one-half money. In summing up the funds to buy a carload of wheat. By selling to the mill total of a bank's transactions—receiving deposits, paying the grain dealer would be enabled to repay such a temchecks, making loans, receiving payment of loans—it is porary advance. The bank is the employment agency for found that not over one-tenth are actual money transacidle funds. An ideal employment agency for men would tions. In more than nine-tenths no money is used, only place every man in that employment in which his efforts promises to pay money. would be most productive. There would be no unem- One having made a deposit may say, "I have money in ployment and there would be maximum product. In like the bank." That is not the fact. In the first place, very manner that banking machinery would constitute the best little money is deposited. More than 90 per cent of the employment agency for money which would keep all funds offered for deposit are checks—promises to pay available funds uninterruptedly employed in the most money. In the second place, whether money or checks productive commerce. It seems a fair statement, then, are used, a deposit is simply the purchase of the right to that the fundamental purpose of a commercial banking draw on the bank. Money or checks deposited become system should be to bring all temporarily idle funds into the property of the bank. The depositor has no money in the most productive use in such a way as to most fully safethe bank, but has bought the bank's promise to pay money. guard commerce against interruption. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

AUGUST 1,1915. FEDERAL RESERVE BULLETIN. is1; DEFECT IN FORMER SYSTEM. country has incorporated in one form or another the same principle into its banking, the Federal reserve act giving What has been the defect in our banking system? Of it to this country. The remedy lies in gathering into a all forms of money there is a total of nearly §4,000,000,000 central agency or agencies a portion of the money reserves in this country, including that in the United States Treasof the banks, to be used for their common protection, in ury, in the pockets of the people, and in the vaults of order that they may continuously perform their functions banks. The deposit liabilities of banks aggregate and thus safeguard general business. Whether under gov- $18,500,000,000. Obviously, if the banks had all the ernmental direction, as in some countries, or under private money in the country they could not pay one-quarter of direction, as in others, whether voluntary or by legal their deposits in money if all depositors made simulta- requirement, such an agency with large money reserves neous demand. Banks actually hold only about operating not primarily for profit, but for protection, $1,600,000,000 of money in all forms, so as a matter of fact achieves the same economic result. Obviously no solvent banks could not pay 10 per cent in money if all depositors bank need fear any demands made for payment if it can should demand it at the same time. The banks have at any time convert its loans into means with which to pay. loans, however, of $20,000,000,000. These have been The maintenance of the ability to pay eliminates deposmad^ to the people, and really on behalf of the people, tors' apprehensions. The certainty of replenishing its being made through banks as their employment agencies paying power eliminates the bank's fears. The cause of for idle funds. Frightened depositors clamoring for pay- panic is thus removed. ment in money, which they wish to hoard, in effect demand that their neighbors, to whom $20,000,000,000 have A FEDERAL RESERVE BANK. been loaned, shall stop the processes of production and Stripped of statutory specification a Federal reserve commercial activity. The lack of reason is clear, but bank is a cooperative agency, in which the member banks, panic is a temporary paralysis of reasoning power. for common protection, pool about one-third of the money In a threatening situation the law of self-preservation previously held in their vaults. has impelled each bank to try to fortify itself by adding If a member bank becomes inadvertently overloaned, so to its stock of money. This it would try to do by calling that its money reserve is too low, it sells a portion of its for payment of loans and by withdrawing in money the shortly maturing loans to this cooperative agency, the amounts due to it from other banks. Once such a process Federal reserve bank. The member bank is thereby kept has been started a general scramble has ensued with cumu- in easy condition and enabled to render fullest service to lative violence. There was no way of quickly or impor- its community without the disastrous interruptions hithertantly increasing the volume of money, and the total to suffered. The payment of the loans at maturity reamount in the country could not satisfy such a demand. plenishes the money of the Federal reserve bank so that The inevitable result has been that banks have ceased like service may be performed for other banks. If the making payments in money and have discontinued other offering of loans for sale becomes too insistent, the Federal major functions until the apprehensions of depositors reserve bank imposes a check by advancing the rates it subsided. charges. If the demand is extraordinary in one district, The struggle of each individual bank wa3 a perfectly the Federal reserve banks of the other districts share the natural one. It regarded its obligations as sacred. It load. In this way the varying seasonal or local loads are would move Heaven and earth to avoid default. But no distributed over the broad base of the combined reserves bank could fortify itself by adding to its stock of money of all the Federal reserve banks. The member banks are except by correpondingly weakening other banks. Each thus linked into a real system guided by the broad general was for itself against all the rest. Cooperation was lacking. policies of the Federal Reserve Board, which are deter- We had no banking system, merely a vast number of indi- mined not by local considerations but by a national and vidual units. The tendency to mutual destruction under international view. stress has been the main defect of our banking. The losses through disruption of the processes of production and trade FEDERAL RESERVE NOTES. by such a panic as that of 1907 would amount to billions. To assure greatest power to help and consequently the Nothing has been of greater commercial importance than greatest general stability, it is necessary for the Federal to find and adopt the best method of averting such crises. reserve bank to avoid important drain upon its gold, which is the final reserve money. This is accomplished by the [E REMEDY. use of Federal reserve notes, which are in fact simply the The difficulty has not been confined to our own country, Federal reserve bank's promises to pay money, indorsed by the Government. They serve every purpose of money but we have been the last of all the commercial countries in ordinary trade transactions. to apply the remedy. The principle of the remedy is very The mechanical operation is simple. A member bank simple, although not recognized until about the middle of sells loans to the Federal reserve bank, thereby establishthe last century when England and France first came to ing a deposit credit. Against this it withdraws Federal understand it. Since then practically every commercial 2098—15 3 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

188 FEDERAL BESERVE BULLETIN, AUGUST l, 1015, reserve notes, thus receiving means to pay its debts. The amount of notes available for issue will be exactly in pro- Federal reserve notes drift back anji are presented to the portion to the amount of the gold reserve of the Federal Federal reserve bank for redemption through deposit or reserve banks. To illustrate: $400,000,000 gold constiotherwise. The means for their payment are provided by tutes the required 40 per cent reserve against $1,000,000,000 the payment of maturing loans, which the Federal reserve Federal reserve notes; $800,000,000 would provide a like bank has bought. The process is in effect an exchange, proportion of reserve against $2,000,000,000 Federal reserve through the instrumentality of the Federal reserve bank, notes. Clearly, to link all banks into one system, thereby of the promissory note of the member bank's customer increasing correspondingly the gold reserve centralized in which will not pass current for Federal reserve notes which the reserve-holding and note-issuing agency, would add to pass current. Such a currency appears only in response the security of all banks, and, what is more vital, would to a commercial demand—a demand upon a member bank give proportionately greater insurance to the stability of for payment of money. When such bank notes are pre- the entire business activities of the whole people. If sented for redemption to the Federal reserve bank, they every citizen were trained as a soldier, the potential are paid and cease to exist just as paid checks cease to defense would be the entire physical force of a nation. If exist. The volume of such a currency automatically ad- only one-fourth of the citizens were so trained, they might justs itself to trade requirements, there is no redundancy, fight with equal valor, but the power of defense would be there is no scarcity, A currency famine is inconceivable. only one-fourth. Some have contended that crises could be averted by ECONOMY OF ELASTIC CURRENCY. increasing the requirement of money reserves. For in- The way in which the use of such a currency protects dividual banks to have gold reserves in large enough the gold reserve from dispersion, and introduces into proportion to be always adequate for all demands would money transactions the same element of economy as the result in a tremendous restriction of commerce through check, may be illustrated by an extreme case: Assume the necessary reduction in loans. But we have found to that a bank has deposits of $1,000,000 with $250,000 money our sorrow that only slight inadequacy of reserves has reserve. Suppose it owed one depositor $300,000 which involved incredible disaster. In the hands of an indihe had occasion to pay to another individual. If he vidual bank gold will pay debts only to its par value. sought to draw $300,000 of gold to make the payment, he Experience, however, has demonstrated the fact that the would ''break " the bank, that is, though perfectly solvent, credit of a great, strong reserve-holding agency will pass the bank could not make good its promise to that depositor current instead of money, so that one dollar of gold in to pay his deposit in money on demand. If, however, he possession of a Federal reserve bank is a basis for providing should take a cashier's check for $300,000 and the one to a member bank with means of settling two and a half whom he transferred it should return it to the issuing bank dollars of debt. In this lies the extraordinary power for deposit, the transfer would not occasion the slightest which a Federal reserve bank has for fortifying its member disturbance of the bank's money reserve. Federal reserve banks. It might be said that as the mythical Antaeus notes are in essence cashier's checks of the Federal reserve renewed his strength by touching Mother Earth, so a bank in currency denominations. They perform the member bank renews its strength by "touching" the service of transferring credit in the same economical way Federal reserve bank. as does a check, without disturbing the reserve. Pay- Under our past banking methods money in vault and ments in money, hitherto, inevitably depleted the money balances with other banks have constituted the banking reserve, and such drain could not proceed far without reserves. Under the Federal reserve system the chief gravest financial disturbance. reserves of member banks will be the rediscountable paper in their portfolios, and the day will doubtless come ADVANTAGE OF UNIFIED SYSTEM. when, as in other countries, the law will not specify any A great tendency to uniformity of banking practice' stated proportion of money reserves. Nonmember State throughout the country would obviously result if all banks can not safely operate thus, since they would have banks were parts of one great system. This would be of no unfailing place of rediscount, the Federal reserve some incidental convenience, but is not vital. The banks not being open to them even through the medium fundamentally important reason for unification is that the of correspondent member banks. No reserve agency but larger the proportion of banking reserves centralized in a one under Federal authority would have conferred upon reserve agency the higher the ratio of potential fortifica- it this magic power of converting one dollar of gold into tion of business to its total volume. means of paying two and a half dollars of debt. The Only through the issue of Federal reserve notes can opportunity for financial life insurance through the fortithere be any speedy or important increase in the total fication by a Federal reserve bank and the selfish desire volume of our currency, which must meet the require- for profit, which is the one constant factor in all business, ments for the use of all banks, State and National, and the will be potent influences to induce State banks to become requirements for the use of all the people. In a crisis, members of the Federal reserve system. As the imporwhen a vast volume of payments in money is required, the tance and bearing of these factors become fully under- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

AUGUST 1,1915. FEDEEAL RESEBVE BULLETIN. 189 stood, it seems reasonable to expect that a steadily in- been estimated by economists and practical bankers to be creasing proportion of State banks will become constituent from 75 to 90 per cent good. That being the case, it departs of a system which will steadily grow in strength and serves a thorough trial by those whom it was intended to unification, its members exercising all functions incident benefit. to banking; and it seems also true that State banks will Our attitude toward any proposition is usually measured ultimately be influenced to such participation both by by our understanding and interest. To understand a mat- State authority and by public opinion as it becomes more ter involves information, which information must be and more fully realized that the security and prosperity accurate and complete, else there is misunderstanding. of the State's commerce will be thereby best attained. Our interest has more sides to it, and may be selfish and It was a wonderful achievement to enact the Federal shortsighted. In deciding- how much we are interested reserve act. Legislation under our form of government is or where our real interest lies, we may be mistaken and necessarily a series of compromises. It is no ground for narrow. Even with all the information at hand, we may disapproval of the act that certain features have not been not recognize our true course; blessings and benefits freas carefully worked out as in the laws of some States. If quently wear a disguise. true, that fact offers a great opportunity for perfecting aid These observations are made to introduce a discussion from those skilled through State experience. The point to-day of the Federal reserve system with special reference of paramount importance is that the Federal reserve act to its operation in district No. 4. Some bankers are conhas incorporated into our banking the fundamentally vital cluding that the new system is inadequate and not appliprinciples of centralized reserves and credit currency. cable to conditions in this country, and especially not use- Benefits will inure incidentally to banks, but in largest ful or beneficial to the particular banker offering the objecsense will flow to general business in every State through tion. This criticism of the system is made, to some extent the new and broader opportunities and through the added at least, in the home of its friends, or those who should be security. There is no proper ground for contention be- its friends. Those of us who have to do with the managetween State banking departments and the Federal reserve ment of this bank realize that this criticism is sincere and system. The fundamental purpose of both is to attain honest. We appreciate it is not wanton. Yet, we are the greatest security and prosperity of industry and just as sure that it is bound to disappear when the undercommerce. standing is increased, and when it is shown that the new system is for the better interests of the banker as well as THE WORK OF FEDERAL RESERVE the business man. BANKS. Now, what is the purpose of the Federal reserve act?, It contemplates in the membership of the Federal reserve Mr. D. C Wills, chairman of the board, Fedt banks all the well-managed banks in the United States eral Reserve Bank of Cleveland, delivered the doing a commercial business. It was not intended as a following address on June 2, 1915, at Lexing- haven for a bank with the bulk of its deposits payable on ton, Ky.: demand and the bulk of its assets-in permanent loans. Nor was it intended to furnish facilities to a bank whose The officers and directors of the Federal Eeserve Bank owners and managers were using the capital, as well as the of Cleveland have been more than pleased with the coopamount intrusted to them by depositors, in the flotation eration received from the member banks in this district. of speculative enterprises, in which the owners and man-, In such a departure from the plan and methods under agers are personally interested. It was not intended to which we have been accustomed to operate, there was place its stamp of approval on banking methods that would bound to be some hesitation and inquiry. The banking include the making of loans to borrowers without obtaining business itself develops, in those who are charged with its accurate and complete information on the financial condimanagement, a tendency not to accept new propositions tion of* those borrowers, or the continuous renewal of the at their face value. This is proper. One of lie strongest paper of a large number of borrowers from year to year, recommendations in determining credit is that a business without even attempting to ob'tain an occasional payment has been established and in existence for a considerable and to insure the solvency of these borrowers and test their length of time. In other words, it is a point in favor of any ability and willingness to pay. business or proposition if it has been in existence long enough to prove its worth. Several stated objections to the system have come to our In view of this necessary attitude of bankers in their notice, and the ones most frequently urged appear to be aB daily dealings with their customers, it is surprising that follows: there has been so little antagonism or apathy toward the 1. Keserve balances now compulsory at the Federal new Federal reserve bank system. However, the Federal reserve bank from its members do not bear interest, entailreserve bank act, while new in America, represents in its ing a loss to member banks of revenue previously received. fundamentals the experience of the ages applied to the 2. The law and regulations are such that banks, espeneeds of this country, and its principles generally are those cially country banks and institutions in small towns, have of scientific banking. The act is not perfect, but it has no eligible paper. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

190 FEDERAL RESERVE BULLETIN. AUGUST l, 1915. 3. The intention to have member banks collect items are eligible if conforming to the credit requirements of the on themselves at par deprives these banks of an exchange Federal Reserve Board, provided the purpose of the loans income previously received without offsetting advantage. is not permanent or speculative: 4. The requirement that member banks obtain in writing '(1) Single name paper of your own customers, who statements from all their important borrowers is a hardship may be tradesmen, manufacturers, jobbers, storekeepers, which may entail the loss of trade, and while practicable etc, in larger centers can not be followed in the smaller centers. "(2) Single name paper of your farmer depositors. Answering objection No. 1, as to interest on reserve de- "(3) Paper similar to above, but containing one or more posits.—The reduction of reserves from 25 per cent to 15 accommodation indorsements as additional security, per cent in reserve cities, and from 15 per cent to 12 per "(4) Commercial paper as sold by note brokers, cent in other communities, means that the additional "(5) Business notes given by a buyer to a seller in setloanable funds will produce a revenue equal to, if not tlement of a commercial'operation. exceeding the amount of interest previously received on '(6) Accepted drafts drawn on a consignee by a shipper reserve balances with correspondents. This calculation is of merchandise. based on the total amount of reserve balance required to !<(7) Notes secured by warehouse receipts for staple be carried in the Federal reserve bank at the end of the agricultural products or other goods, wares, or merchandise. three-year period. For instance, at the end of three years "We can also purchase with the indorsement of member a bank with $100,000 on deposit will carry with this bank banks: (a) Bankers' acceptances based on the importa- $5,000; 2£ per cent on this amount is $125. The reduction tion or exportation of goods, and (6) warrants of cities, in reserve—3 per cent on $100,000—is $3,000; the interest towns, and communities, when conforming with Circular on §2,000 at 5 per cent is $150. No. 7 of the Federal Reserve Board." The absolute ability to obtain currency in any emer- This letter, in our opinion, states in a concrete way what gency enables a bank under the new system to operate is possible under the broad interpretation of the act by the safely without excess reserve. Heretofore, banks realizing Federal Reserve Board. Surely any well-managed bank that in a crisis they might have to depend on their own ought to have sufficient eligible paper under one or all of resources, carried excess reserve. these holdings to avail itself of the rediscounting facilities It should be noted that the 5 per cent reserve require- of the Federal reserve bank. A number of ways suggest ment for savings and time deposits is an additional profit- themselves for gradually increasing the amount of eligible producing feature of the new act intended to benefit paper; for instance, if a part of a borrower's loan is to pay . especially the banker in the smaller community. for a permanent investment and part for a commercial, The May circular issued by the National City Bank of industrial, or agricultural current operation, the obligation New York contains the following interesting paragraph on can be divided into two notes. Borrowers whose asseta the payment of interest on balances by a central reserve are real estate, who have been carrying their loans for a institution: long period without payment, and who can liquidate their *' There is no dissent the world over, in scientific opinion, obligations only through the sale of their real estate can from the conclusion that a central institution which carries be induced and requested to place a lien on the property the final reserves of the country, and upon which the bank- and pay off the obligation. While primarily renewals are ing system as a whole relies for ready cash, should not pay not recognized as strictly commercial paper, yet, under the . interest on deposits. The reason is that the payment of ruling of the Board, a note is prima facie a commercial one interest compels a bank to actively employ a larger pro- if the quick assets of the borrower show a sufficient margin portion of its resources than is advisable under such respon- over his current liabilities; and in such case a renewal is sibilities. On the other hand, the maintenance of large acceptable, since there are commercial and industrial reserves by a central institution, together with the power transactions that require a longer period than ninety days of note issue, enables the member banks to carry smaller to finish the operation, and under certain conditions six reserves than otherwise would be safe, so that they actually months might not be long enough for a farmer to raise and lose nothing in earning power by supporting a central in- market a crop or finish the feeding, fattening, and disposing stitution." of his live stock. Why the law insists on liquid paper and Answering objection No, 2, as to eligible paper.—Under that loans must have a definite maturity was illustrated a date of March 31,1915, the Federal Reserve Bank of Cleve- short time ago in our district. It was discovered that the land sent to its members the following letter: managing officer of a member bank had victimized his "Through correspondence and interviews, I have be- bank almost to the extent of wiping out its entire surplus. come convinced that a considerable number of bankers are The information became public, and a run started. When still under the impression that the only kind of paper an attempt was made to realize or collect on a portion of eligible for rediscount at the Federal reserve bank, is what the bank's assets it was found that 40 per cent of the loans is known as 'business paper' given by a buyer to a seller were drawn on demand and have been carried continuously "In order that you may not be under any misapprehen- without asking for payments except aa borrowers offered to sion, I wish to assure you that the following kinds of notes pay, that time notes were nearly all drawn for long periods, Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

AUGUST 1,1915. FEDERAL KESERYE BULLETIN. 191 and that the paper of early maturities was inconsiderable. compensate for the loss of exchange on par checks. One It was found, too, that not a single record was kept of the of the Federal reserve banks has already announced to Us responsibility of the borrowers, the information being members that it has employed at its expense a committee solely in the hands of the cashier who had gone wrong. of experts for the purpose of inquiring into and analyzing The directors, when questioned as to the responsibility of the statements and methods of a number of typical banks certain debtors, did not agree on the worth of any single for the purpose of ascertaining whether the revenues or man and often did not know which Jones it was that drew profits may be increased and the expenses and cost diminthe note. The ability of that bank to cope with the emer- ished. The results of this investigation will probably be gency and protect the interests of its depositors and share- available to member banks throughout the whole system. holders was at a minimum, and I am sure that banks in If not, the Federal Reserve Bank of Cleveland will, I that neighborhood will not hereafter require much explana- think, make a similar investigation for the benefit of its tion as to the necessity of having realizable assets to meet own members. liabilities that are subject to demand and payment at any Answering objection No. 4 as to statements of borrowt time. ers.—I think it is the experience of every banker that his Answering objection No. 3, as to check collection and customers and depositors often cooperate with him to a exchange charges.—The immediate effect of a bank's col-larger extent than he estimated. I do not believe any lecting at par checks drawn on itself is a loss of exchange. borrower who is entitled to credit will refrain from plac- I am confident, however, that the country bank's portion ing in the hands of his banker information in order that of the benefits to be derived from a universal doing away the banker may determine the borrower's right to credit. with exchange and the collection of checks at cost will The following paragraph is from a recent folder of the more than offset this apparent immediate disadvantage. Credit Men's Association: Having a check on Dry Ridge pass current in district No. 4, "Good credit in the markets of the world enables the the same as a check on Cincinnati, Cleveland, or Pitts- merchant to add to his ability to do business. It gives burgh, will insure at least that no funds will be transferred him the use of enlarged capital, thus enabling him to carry out of the community to par centers, and concerns or a more complete stock, increase his sales, and magnify hia individuals that have been accustomed to intrust the profits. A merchant's capital is the sum of his net available smaller and unprofitable portion of their business to the resources plus his credit. The giver of credit is a contribulocal bank and their larger and more remunerative trade tor of capital and becomes, in a certain sense, a partner of to a bank in a center in order to have their checks pass at the debtor and as such has a perfect right to .complete par may conclude to do the bulk of their business with information of the debtor's condition at all times. local institutions. "Credit is given a merchant because of the confidence Checks now settle 95 per cent of all obligations in this reposed in him. Requesting information when credit fe country; but in developing its use as rapidly as we have— asked is not a reflection on one's character, honesty, or far more rapidly and extensively than in any other coun- business ability but is done to secure information to enable try—many difficulties have been encountered, and many business to be conducted intelligently. evils and bad practices have arisen. Mr. McKay, perhaps "A merchant who desires to serve his own best mterests the foremost practical authority on this subject, sum- shoUld recognize that his most valuable possession apart from marized these evils as follows at the recent conference of his actual assets, is a sound, substantial, and unquestioned reserve city bankers: reputation as a credit risk, and that, under the prevailing "First. Excessive exchange charges. conditions and demands of business, the most effective "Second. Absorption of exchange charges by the col- and eminently the best way to prove his basis for credit is lecting banks. to be willing to submit a statement of his financial "Third. Indirect routing of checks to avoid exchange condition." charges, chiefly caused by clearing-house rules governing In an interview with the president of an Ohio bank, most exchange charges. of whose business is with farmers, we were informed a few "Fourth. The maintenance of reserve balances with days ago that he had encountered very little difficulty in banks for the sole purpose of getting items on which to obtaining written statements from those who were parties charge exchange. to his loans. He stated that when the regulations of the "Fifth. The carrying of compensating balances with Federal Reserve Board came out he recognized that they were not only sound but workable and immediately began collecting banks solely for the purpose of obtaining par he education of his borrowers by requesting them to territory. t furnish him with statements. He had received over 100 "Sixth. Paying interest on uncollected funds. statements, practically all of which confirmed his esti- "Seventh. Paying checks drawn against uncollected mate of the worth of the borrowers. In one or two unds. instances, however, he was surprised to find unrecorded "Eighth. Padding of reserves with items in transit." mortgn£?s and borrowings in neighboring banks, of which The Federal reserve bank, too, will probably offer he ktr;w nothing. The probable saving of loss in these another service to its member banks, which ought to Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

192 FEDERAL RESERVE BULLETIN. AUGUST 1,1915. instances justified him, in his opinion, in obtaining the ESTABLISHMENT OF INTRADISTRICT statements. He also noted with satisfaction the coopera- CLEARANCE SYSTEM. tion given by the borrowers themselves, many of whom for the first time had made an accurate schedule of their On July 9 the Federal Reserve Board transassets and liabilities; in all cases he furnished a^opy of the mitted to the Federal reserve banks the followstatement to them and requested that it be kept and used again by the borrowers for comparison when they filed ing letter of inquiry regarding the status of another statement at the next period. It eeems hardly the intradistrict clearance system, already possible that the experience of this banker in a farming established by the several banks, as set forth district is any different than the experience will be of any in the Federal Reserve Bulletin for May, 1915 banker who will sincerely and intelligently test this requirement. (pp. 6-9): While there is only part of the State of Kentucky be- The Federal Reserve Board desires to prelonging to district No. 4, and while the amount of the pare for the August 1 Bulletin a brief statecapital owned and reserve deposits received from these ment of the progress which has been made banks is relatively small compared with the States of Ohio under the voluntary clearing plan in the vaand Pennsylvania, yet, according to our estimate of the rious districts, so as to show, say, as of July 16 situation, the Federal Reserve Bank of Cleveland ought ta 20, the situation in the various districts. In to be particularly helpful to the banks of northern Ken- order to assist us in formulating data, we shall tucky. Our attention has been drawn to this district for be glad if you will respond to the following a number of reasons. It is farthest away from the location questions: of the bank, and has problems and difficulties that differ 1. Number of banks which have come in, from those of the northern banks. Kentucky, too, is well 2. Percentage of capital in your bank repre,represented on our board of directors in the persons of sented by the assenting banks. Senator Combs and Mr. Patrick, and I have never yet seen 3. What is the average number of items a man from Kentucky who did not seek the advancement cleared daily ? of his State and call attention to its virtues and possi- 4. What do you estimate cost directly bilities. Our Kentucky directors are no exception. The chargeable to this work ? State of Kentucky owns 18 per cent of the capital stock of 5. Percentage of clearing banks showing this bank and is represented in 3 per cent of its deposits, overdrafts (exhaustion of balances). while of the $700,000 loaned to member banks, $315,000 is 6. Number of men employed in your transit loaned to banks in Kentucky. This indicates the willingdepartment. ness of the Federal Reserve Bank of Cleveland to furnish 7. How is the voluntary plan working, in facilities for the special condition existing at this time in your estimation % this part of the district. 8. Wu%it be necessary or desirable that the In order that the system may be as fully a success as the framers of the act intended, and in order to mobilize gold board issue a mandatory order before the work reserves of sufficient size to protect the credit of this country can be successfully carried through ? against any emergency, it is essential that State banks 9. Is the clearing of checks accepted as a become members. The regulations of the Federal Reserve valuable service by your members, or is there Board on tho admission of State banks will shortly be issued. I have seen the tentative circular, and the require- still much opposition to it ? ments are going to be so liberal that every bank should 10. Is it gaining in friends ? give the matter prompt consideration; in my opinion the way has been opened for all well-managed commercial The answers to the first six questions con- State banks to join. The great benefits to be derived by tained in the list are susceptible of tabulation, all banks from having the majority of the banks of the country in the system justify the liberal terms to be offered the and the substance of them is set forth as State banks. Their joining will be hastened by a work of follows: indorsement from the banks already in the system. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

AUGUST 1,1015. FEDERAL RESEHVE BULLETIN. 193 Questions sent to and answers received from each Federal reserve bank regarding the working of the intradistrict clearance system. Question. Boston. New York. Philadelphia. Cleveland. Richmond. Atlanta. 1. What number of 50 115 125 120 S9 71. banks have come 2. W in h ? at percentage of 27... 46.7 55 17 45 44.3. capital in the Federal reserve bank is represented by the assenting banks? 3. What is the average 1,200 4,976 4,9771 , 1,713 3,070 About 195.* cleared daily? 4. What do you esti- 2 clerks whose sal- About 59,100, based Salaries, S5,SS0 p. Estimated yearly Salaries, ?2,SS0 p. Estimated total mate cost directly aries aggregate upon an esti- a.;postage,Sl,950 direct cost a.; postage, S900 cost, including chargeable to this Sl,500p.a. This mated daily cost p. a.; total, ?7,S30 35,815.38; averago p. a.; stationery, salaries, postage, work? is exclusive of of $25.30. This p. a., exclusive of postage per day, $300 p. a.; total, and percentage of printing, station- estimate includes stationery, the S4.43. 84,0$0 p. a., ex- rent, light, etc., ery, machines, only salaries of cost of machines, clusis*e of book- Sl,200p.a. and overhead ex- clerks working di- and of erecting keeping and overpense. rectly upon col- and equipping head charges. lections, also special gallery to postage and sta- accommodate detionery, but is partment. , exclusive of the cost of superintendence, rent, or other overhead charges. •5 ^ V*hat TDercentaco of 195 7.2 0.5 83 1 bank.* clearing banks show G G o i v v e o r d n r u a m fts b ? or of men o c 6 men exclusively, 4, and occasional 4 Two-thirds of time employed in your with some assist- services of 3 oth- of i man. transit depart- ance from filing ers. ment. . • . ; department and ofiice boys. . Question. Chicago. St. Louis. Minneapolis. Kansas City. Dallas. San Francisco. 1 "Whiit TinTnbcr of 366 106..! 951 93 110. banks have come '2 W i h n a ? t nercMitape of 90 44 100 31 40. capital in the Federal reserve bank t i h s e r epr a e s s s en e t n ed ti n b g y 1 '• banks? 3. What is the average. 5,714 1.156, including No data.* number of items items on Dallas cleared daily? passed through the Dallas clear- • ing-house exchanges. 4. What do vou esti- Estimated cost Estimated cost Salary of transit Estimated cost 32,256 p. a., viz: No data.6 mate cost directly $30,000 p. a., esti- 515,000 p. a., ex- man, 32,000 p. a., $24,000 p. a., in- Salary manager chargeable lo this mated on the clusive of admin- who also has cluding pro-rata transit departwork? basis of § cent per istration expense. charge of the rent, postage, de- ment, Sl,500; item for Chicago mail. Estimate preciation, etc. clerk, 3600; stabanks, 1 cent per does not include tionery, 372 (estiitem for subur- cost of printing, mated) ; excess ban banks, and stationery, etc. postage, SS4., 1§ cents per item for out of town banks. 4g« 1 overdraft 2 About 3 No data.5 v. vviuib percentage oi clearing banks show overdrafts? 6. Give number of men 7 regularly and 4 14 1; see answer to 11; some perform- 2 men; see also No data.* employed in your extra about 2 question 4. ing duties out- answer to questransit depart- hours each after- side the transit tion 4. . ment. noon. department. i High, 6,517 on July 7; low, 2,735 on June 15. * All outside of Atlanta. a On a basis of 7 days' operations. * Covered by New York exchange. * System to commence operations Aug. 1. * On a basis of 4 days' operations. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

194 FEDERAL RESERVE BULLETIN. ACGUST 1, 1915. Not all the banks have submitted full re- them are par in —. We believe this action sponses to questions 7, S, 9, and 10, and some will oblige other banks to join the collection system, and that economic pressure will come while replying to these questions, have not from depositors of the banks and from the furnished a definite expression of opinion. merchants who now have to pay exchange The substance of the answers can, however, charges which will influence more banks to be briefly stated. On the question of a assent to the collection system." mandatory system as opposed to a non- "A great many banks have written us that under no circumstances would they join the mandatory, reports show that 11 districts now system until it is made compulsory, and all have nonmandatory, and one a mandatory banks come in at the same time. It would system of check collections. Of those districts appear, therefore, that it will be necessary whose S3Tstem is not now mandatory, three that the Board issue a mandatory order distinctly state that they believe the intro- before the work could be carried through successfully." duction of a mandatory system would be "I feel that only in the presence of a mandaundesirable; while seven express themselves, tory regulation will we be able successfully to in some cases with more or less qualification, give effect to the plan." in favor of the introduction of a mandatory "It may be necessary, and, in my opinion, system, most of the banks regarding this as will likely be desirable, that the Board make the necessary if the plan is to become fully effective. plan compulsory before success is assured." "We believe that it will be necessary that the Among the expressions on this subject are Board issue a mandatory order compelling the following, each paragraph being the exbanks to join the check-collection system in pression of one bank: order that the member banks may realize the full benefit of the arrangement. Member "It will certainly be necessary for the Board banks generally expected to be compelled to to issue a mandatory order before even the join the check-collection system, and when the present plan would be of sufficient scope to voluntary plan was offered a large majority reach a moderate point of efficiemrf. Many preferred to defer joining until they could of the banks have indicated to us that they observe the effects of the operation of the plan would not come in unless compelled to do with such banks as decided to join. We beso, and would not accept the mandatory lieve that if the plan were made mandatory it order kindly by reason of the great loss of would in a reasonable time commend itself to exchange/' our member banks, but for the present the fear "We think it will be necessary" (i. e., for the of the necessity of maintaining excess balances, Board to issue a mandatory order before the on which no interest is allowed, and the disinwork can be successfully carried through) clination -to relinquish exchange profits deters "before all the banks join the system, but many country banks from entering the volunworking along the present plan, I believe tary system." . that we can in time secure at least 50 per cent of them," "We have been, and are, of the decided opinion that the Federal Reserve Board should issue "* * * it would seem that, if the system t a mandatory order compelling all member banks is to be a success, the Board will have to issue in each district to become clearing members, a mandatory order requiring all member thus extending the facilities for the clearance banks to clear through the Federal reserve of checks to the entire field of industrial and banks of their respective districts. It will be commercial activities, as we believe was conimpossible for Federal reserve banks to enter templated by the Congress in the enactment of into relations with each other for the clearing of checks on their respective members untu the Federal reserve act." all the members of oacn district are members The following is a list of the various member of the clearing system of that particular banks which have joined the intradistrict . district." clearance system. The system did not take a* * * | ) tary collection system should bo giv t1 e 0 n vo ab u o n ut six months more to effect at the same date in all districts, and it operate before deciding as to whether it is has not been practicable to correct the lists up successful or not. Banks which have joined to the same date for all. All banks included it are now advertising the fact that checks on in the several districts up to July 1, 1915, are, Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

AUGUST 1, 1915. FEDERAL RESERVE BULLETIN. 195 however, listed below, while in some districts List of member banks that have joined the collection system additional banks have joined the system, not- of the Federal reserve banks—Continued. withstanding that their names do not appear DISTRICT No. 1.—Continued. in the attached list, and a very few of those Transit listed may have withdrawn. The several States City or town. Name of bank. number. in each district have been arranged alpha- RHODE ISLAND. betically, and the cities in which the clearing Providence National Exchange. 57-2 banks are located have then been alphabet- VERMONT. ically grouped. Where more than one bank in Bellows Falls National Bank of Bellows 58-60 a given city or town is a member of the system, Falls. Montpelier First National 58-43 such banks are then grouped alphabetically. North BonnLngton. ..do. 58-113 St. Johnsbury Merchants National. 58-38 The latest returns show that the clearing system Windsor State National 58-84 comprises a total of 2,373 banks, taking all districts as an aggregate* DISTRICT No. 2. List of member tanks which have joined ike collection system NEW JEESET. of the Federal reserve banks. Allentown Farmers National , 55-367 DISTRICT No. 1. Arlington The First National 55-368 BernardsviUe.... Bernarclsvillc National 55-374 Blairs town First National 55-365 City or town. Name of bank. n T u r m an b s e i r t . B Cl o i u nt n o d n Brook.... C B l o i u nt n o d n B N ro at o i k o n N al ational, 5 5 5 5 - - 3 3 3 6 5 3 Edgewater First National 55-351 EngHshtown do 55-302 CONNECTICUT. Flemington Flemington National 55-350 Freehold The National Freehold Bank- Bridgeport First Bridgeport National.... 51-32 ing Co. 55-340 Clinton Clinton National 51-270 Carfield First National 55-395 Danbury Danbury National 51-125 Hackensack Peoples National 55-216 Greenwich Greenwich National 51-146 Hoboken First National 55-108 New Haven First National 51-9 Do Second National 55-110 Suffield do 51-235 Hope First National 55-159 Lvndhurst ..do. 55-469 MAINE. Manasquan Manasqtian National 55-411 Matawan Farmers & Merchants National 55-412 Boothbay Harbor First National 52-168 Newark Manufacturers National 55-8 Do National Newark Banking Co. 55-1 MASSACHUSETTS. Lo National State 55-2 New Brunswick.. National Bank of New Jersey. 55-179 Attleboro First National 53-284 Orange Second National 55-171 Boston 5-32 Paterson First National 55-55 Do Commercial National 5-56 Do Paterson National 55-60 Do First National 5-39 Do Second National 55-56 Do ... Fourth-Atlantic National 5-12 Plainfield City National 55-193 Do Merchants National 5-13 Do The First National 55-191 Do National Union National 5-2 RidgefieldPark.. First National 55-433 Do Old Boston National 5-3 Ridgewood .do. 55-294 Do Peoples National Bank -of 5-107 Somerville do 55-312 Roxbury. Do Secorfd National 55-314 Do Second National 5-17 Tenafly First National 55-446 Do Wobster & Atlas National.... 5-25 Westfield The National Bank of West- 55-2S2 Chelsea Broadway National 53-222 field. Gloucester Cape Ann National 53-254 West Orange.. First National 55-150 Haverhill First National 53-167 Hudson Hudson National 53-451 NEW YORK* Holyoke Park National 53-141 Hopkinton Hopkinton National 53-548 Albany First National 29-8 Manufactures National 53-86 Do National Commercial 29-7 First National 53-324 Do New York State National 20-1 Do "" Peoples National 53-323 Amsterdam First National 50-135 MOlbury.... Millbury National 53-520 Bay Shore .do. 50-903 New Bedford Mechanics National 53-69 Bronxville Gramatan National 50-668 Newburyport Merchants National 53-311 Brooklyn First National 1-356 Northborough Northborough National 53-584 Do , Greenpoint National 1-3S9 Norwood Norwood National 53-587 Do Nassau National 1-118 Plymouth Plymouth National - - - • 53-361 Do National City 1-352 Mount Wollaston National... 53-214 Do Peoples National. 1-585 Chicopee National 53-95 Buffalo Central National 10-24 ^ Do Springfield National 53-104 Do Marine National 10-2 W We a s r t e field H W a a m re p N de a n ti o N n a a t l i onal •-.-•.- 5 5 3 3 - - 4 2 0 8 5 8 Caie D n o ovia , C Th az ir e d n o N v a ia ti o N n a a t l ional 50 1 -6 0 8 -6 5 Worcester Merchants National 53-4 Dundee Dundee National 50-607 Do Worcester National 53-1 Elmira , Second National 50-108 Do Merchants National 50-110 NEW HAMPSHIRE. FarRockaway., Na w ti a o y n . al Bank of Far Rocka* 1-436 Claremont Claremont National 54-73 Glens Falls First National 50-256 Manchester Amoskeag National 54-6 Do National Bank oi Glens Falls.. 50-255 Do I Merchants National 54-3 GranviUe Washington County National, 50-484 Portsmouth r First National 54-47 Greenwich First National 50-748 2098—15 4 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

196 FEDERAL BESEBVE BULLETIN. AUGUST I, 1915. List of member banks which have joined the collection system List of member banks which have joined the collection system of the Federal reserve blanks—Continued. of the Federal reserve banks—Continued. DISTRICT No. 3—Continued. DISTRICT Mo. 2—Continued, City or town. Name of bant. n T u r m an b s e i r t . City or town. Name of bank. n T u r m an b s e i r t . NEW TORE—continued. NEW JERSET—continued. H I J L L N t a o a h e u m r w c a d c k D c a s h a B p i o o c m o n u a r o r t F n g a t h l . l . s . . . L H T F N P F e i a i o i a r r g o r m r s t c h p i s t o h p t l l N e a n m k N s n a i a o n d l a N t n s i t E o N i a t o C x t n a N i n c o a o t a h l a i u n l o a t n a i n n o l ty a g n l e a N l . a . t . i . o . n .. a . l.. - . 5 5 5 5 5 5 1 0 0 0 0 0 0 - - - - - - - 4 1 7 2 2 4 2 3 7 7 3 6 2 6 1 4 6 5 2 3 1 W S T P P P P w r o i o o i t i m i r n l m e n l t d c i N s t a a e e n m s R o t P o b r i l s n o r v e t i r a o e s o s r w a n n . t . . . , S F F P O .. w i i i . c r r t . e e m s s d a d t t d o n a e o N N n s . C b a a N t o t o i i r u o o a o n n t n i t a a N o y l l n a a N t l i a o t n i a o l n .. al. 5 5 5 5 5 5 5 5 5 5 5 5 5 5 - - - - - - - 4 3 4 4 4 3 4 5 0 4 5 3 5 2 4 5 5 7 0 3 8 Hew York.... American Exchange National. 1-21 Do Bank of New York National 1-1 PENNSYLVANIA. Banking Association. D D D D D o o o o o C C C B B h h h r a o a e a tt s n m t e h e x r i a c y N m N a a l P a t & N a t i i o r o a k n P n t a i b a N o l e l n a n a t i i l x o n N al atio - nal.. 1 1 - 1 1 1 - 4 2 - - - 1 7 3 1 3 6 4 0 2 2 A Al l t i o e D D D n o t n o o o o a wn, A M S F S e e i l e r c c le s r o o c t n n n h t N d d o a a w n N N t t n i s a a o t t n N N i i o o a a a n n l t t a a i i o o l l n n a a l l , . 6 6 6 6 6 0 0 0 0 0 - - - - - 1 1 1 1 1 2 1 1 2 3 9 8 6 8 1 Do Citizens Central National 1-36 Blue Ball , Blue Ball National.. 60-1091 D D o o C E o a a s l t & Ri I v r e o r n N N a a ti t o io n n a a l l 1 1 - - 9 5 9 9 B C r a a n d to fo n rd B Fa ra rm df e o r r s d N N a a t t i i o o n n a a l l . . . . . 6 6 0 0 - - 3 9 6 6 6 1 Do Fifth National 1-82 Catasauqua National Bank of Catasauqua.. 60-726 Do Fiist National .-. 1-S5 Chambersburg,, National Bank of Chambers- 60-427 Do Garfield National 1-81 burg. Do Gotham National 1-244 Clarks Summit. Abington National 60-1430 Do Hanover National 1-33 Coatesville National Bank of Chester Val- 60-452 Do Importers *fc Traders National. 1-53 Do Irving National 1-67 Collegeville.-, Coflegeville National 60-1115 Do Liberty National 1-91 Coplay National , 60-1121 Do Lincoln National 1-80 SDaannvvSililce Danville National , 60-573 Do Market & Fulton National.... 1-42 Do First National , 60-574 Do Mechanics «fc Metals National.. Duncannon Duncannon National 60-978 Do Merchants Exchange National. 1-13 Do Peoples National 60-979 Do Merchants National 1-3 Dunmore FirstNational 60-313 Do National Bank of Commerce... 1-23 East Berlin East Berlin National , 60-1040 Do National Butchers <fc Drovers.. 1-15 Fawn Grove FirstNational 60-1157 Do National City 1-8 Freeland do 60-652 Do National Park 1-54 Girardville FirstNational 60-1171 Do Now York County National... 1-71 Glenside Glenside National. 60-1174 Do Seaboard National 1-85 Hamburg FirstNational.... 60-895 Do Second National 1-63 Hazleton ....do 60-233 Do Union Exchange National.... 1-100 Honey Brook .....do 60-1192 Nyack Nyack National 50-457 Howard .....do 60-1198 Ogdensburg. National Bank of Ogdensburg. 50-240 Huntingdon ....do 60-616 Osslning Osslning National 50-319 Lancaster Northern National 60-143 _ DDoo , Fiist National 50-318 Do Peoples National, 60-144 Perry do 50-463 LandisvMe FirstNational < 60-1213 Port Chester.., do 50-281 Lansdale ....do 60-801 Port Jefferson.. ...do 50-555 Lehighton ....do 60-717 Ridgewood RMgewood National 1-437 Lemasters Lemasters National. 60-1220 Rochester , Traders National 50-8 Lewistown Citizens National 60-536 Rye R3 e National 50-845 Liverpool FirstNational 60-1226 Schenectady,.. Union National 50-90 McConnellsburg.. do. 60-1051 Do , Mohawk National 50-88 Marietta Exchange National 60-915 Stapleton , Richmond Borough National. 1-454 MillersvIUe MillersvIUe National.... 60-1253 Syracuse First National 50-36 Milton Milton National 60-581 Do Salt Springs National 50-34 Mount Jewett.... Mount Jewett National. 60-1262 Troy Manufacurers National 50-64 Mount Joy FirstNational 60-907 T W u e c s k tf a i h el o d e N Fi a r t s i t o n N a a l ti B o a n n a k l of Westfield... 5 50 0 - - 5 9 2 4 3 1 M Mo o u u n n t t v U il n le ion Moudnot.v.ille National 6 6 0 0 -1 -8 2 1 6 9 5 White Plains.. First National 50-234 N N o az rr a i r s e to th wn N Pe a o z p a l r e e s t h N N at a io ti n o a n l al 6 60 0 - - 2 7 1 6 9 5 North Wales North Wales National 60-1284 DISTRICT No. 3. Phil D ad o e . l . p . hia C B e a n n t k e n o n f i N al o N rt a h t i A on m a e l rica 3 3 -2 -2 9 Do Central National , 3-26 Do Corn Exchange National 3-18 Do Eighth National 3-25 Deimar. Fin t National. 62-48 Do,.. Farmers & Mechanics National 3-3 Seaford. -io 62-35 Do First National 3-20 Do Fourth Street National 3-39 NEW JERSEY. Do Franklin National 3-44 Do. Girard National 3-13 Atlantic City.: Boa rdwalk National 55-146 Do., Kensington National 3-8 Berlin Berlin National 55-373 Do., Manufacturers National 3-11 Blackwood Fir? t National 55-376 Do., Market Street National 3-40 Bordentown .do. 55-333 Do.. National Bank of Germantown 3-53 Camden Can iden National 55-88 Do.. National Bank of the Northern 3-6 Do First National 55-86 Liberties. Clayton Clapton National 55-472 National Security 3-2S Haddon Heights Haldon Heights National.,, 55-400 Do.. Ninth National.. 3-33 Millville..... Mechanics National 55-238 Do., Northern National 3-43 Moorestown Moorestown National , 55-345 Do., Northwestern National 3-36 Mount Holly Union National 55-290 Do., Penn National 3-9 Pedricktown First National 55-424 Do.. Philadelphia National 3-1 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

AUGUST 1,1915. FEDEEAL EESEBVB BULLETIN. 197 List of'member banks which have joined the collection system List of member banks which have joined (he collection system of the Federal reserve banks—Continued. DISTRICT No. 3—Continued. DISTRICT No. 4—Continued. City or town. Name of bank. n T u r m an b s e i r t . City or town. Name of bank. n T u r m an b s e i r t . PENNSYLVANIA—COntd. OHIO—continued. Philadelphia Quaker City National 3-42 Cleveland Cleveland National 6-5 Do... Sixth National 3-23 Do First National 6-10 Do Southwark National 3-7 Do National City — 6-12 Do Southwestern National 3-37 Do National Commercial 6-8 Do Tenth National 3-34 Do Union National 6-15 Do Textile National 3-45 Columbus Central National 25-16 Do Third National 3-21 Do City National 25-3 Do Tradesmens National 3-14 Do Commercial National 25-5 Do Union National — 3-19 Do Hayden-Clinton National 25-7 Fhoenbcville National Bank of Phoenixville. 60-465 Do Huntington National 25-2 Pottsville Miners National 60-247 Do National Bank of Commerce... 25-12 Do Pennsylvania National. 60-248 Do New First National 25-4 Quakertown Quakertown National 60-770 Do Ohio National 25-1 Ralston First National. 60-1311 Coshocton Coshocton National 56-279 Reading.. National Union 60-36 Dayton City National 56-28 Scranton . First National 60-1 Defiance Merchants National 56-358 Do... Third National 60-4 Dillonvale First National 56-943 Do ;.... Traders National 60-8 Elyria The National Bank of Elyria.. 56-197 Selins Grove Fanners National 60-981 Fostoria Union National 56-285 Shippensburg Peoples National 60-812 Franklin Franklin National 56-572 Tamaqua First National 60-197 Fremont First National 56-272 Terre Hill Terre Hill National 60-1367 Georgetown do 56-673 Tremont Tremont National 60-917 Greenwich do 56-790 Troy Grange National Bank of Brad- 60-1005 Hamilton do 56-91 ford County. Do Second National 56-92 Watsontown Farmers National 60-939 HiUsboro Farmers and Traders National 56-501 Waynesboro. Citizens National 60-602 Do Merchants National 56-500 Peoples National. • 60-600 Lewis ville First National 56-1019 Wellsboro First National. 60-830 London Madison National 56-538 West Chester do 60-439 Lorain National Bank of Commerce... 56-110 Y W o i r l k l D D D ia o o o m . s . p . o .. r . t ..... C W F N F i i e a C r r e n t s s s o i t t t o t r u a N N n B n l a t a a r l y N a t t - i n i a o B o c t n i a n h o a n a l n N k l a . a l . o . ti f o n C al hester 6 6 6 6 6O 0 0 0 0 - - - - - 1 1 1 1 4 5 9 9 6 3 5 6 7 5 S M M M M M i a o o a l s f r u u D o s i n n e i r l o t t d t l t o a V S n t e e r r n l o in n g .. - . C N M M Fi i e i e r t l w i s r f z o t c d e r h o K N n d a s n a n N o t N t i s x a o a t N n t i N i o a a o l a n t n t i a i a o l o l n n a a l l 5 5 5 5 5 5 6 6 6 6 6 6 - - - - - - 2 2 7 2 7 2 9 4 4 1 9 1 7 9 0 2 8 3 Do York National 60-153 New Concord First National 56-1069 Norwood do 56-180 Do Norwood National 56-181 DISTRICT No. 4. P Po lq w u h a atan Point. C Fi it r i s z t e N ns a t N io a n ti a o l nal 56 5 - 6 1 - 1 2 1 1 6 9 Ravenna Ravenna National 56-464 Sandusky Commercial National 56-164 KENTUCKY. Do Third National Exchange 56-162 C G B o r e o o v o r i g n k e g s t v t o o i w l n le . n . , C F G i i e t r o i s z r t e g N n e s t a o t N w io a n n t i a N o l n a a ti l onal 7 7 7 3 3 3 - - 1 3 - 3 8 1 9 2 8 S Sp p r r i i n D n g g o f i V el a d lley.... T F S F i p i a f r r n f s i i n t n n e g N r N s V a a t a N i t o i l o l a n e n t a y i a o l l N na a l tional 5 5 5 6 6 5 6 -1 - 6 -2 6 1 - 5 6 7 8 3 2 3 1 L M u a d y l s o v w il le , F B i a r n s k t N o a f ti o M na a l ysville, National 7 73 3 - - 1 1 0 4 0 5 Tole D d o o. N Fi o r r s t t h N er a n t io N n a a t l ional 5 56 6 - - 4 1 N P M i e k o w e u D v p n i o o t O l l r S ; e t ; t ; e ; r ; l ; ing S F M M G T t i r e B o a o r a r s t n u d m a e t t n e n g N a N t r k o n s S a i a m n N t t t N i g e i e o o a r a r n l t n y A t i i i a a n o o s N l l g n s n o a a a N l c t l i i a o a t n t i i o a o l n n a . l 7 7 7 7 7 3 7 3 3 3 3 - 3 - - - - 2 1 1 1 1 - 6 2 5 4 0 5 S 7 0 9 2 1 Y W W Y V o e a u f a p D D n i d a s g o o s k v w s o i t l o n o le r e w t . t h . n a . . . . . . A C F S F P e i e i o u r r c o m g s s o p t t l m n a l N N e i d z e s a a e r N c N t t i i i N a o o a a t l n n a t i i o t a a N o i l n l o n a a n a t l a i l o l .. n . a .. l - 5 5 5 5 G 5 6 6 6 5 6 - - - 5 3 - 4 6 - 4 4 4 5 6 - 4 2 6 9 6 1 Russell..... ..do.. 73-5SS Somerset ..do. 73-142 PENNSYLVANIA. Winchester Clark County National., 73-90 Beaver Falls Farmers National 60-422 Bellevue Citizens National 60-648 OHIO. Braddock Braddock National... 60-267 A B B B B e l a r l a c u l l l n t a f e i c n l v m t h u u o e o m e n s r t . e e .. . r . . . . F ./ i . r . s d d d d t o o o o National.... 5 5 5 5 5 6 6 6 6 6 - - - - - 8 6 7 4 6 8 2 0 7 4 1 3 $ 2 2 C B B E E r a u l r i l m i t e w d le b g o r r o e id v d g C il e i l t e S y . p .. r . i . n . g .. s. M M S F P F p e i i e a r r o r s r s r i p c i t t n n l h g N e N e a s s a n a N N t N t t i s i a o a o a t t n N i t n i o i a o a o a n l n l n t a . a i . a l o . l . l , . nal.. 6 6 6 6 0 6 0 0 6 0 - - 0 - 0 - 2 9 7 9 - - 4 7 7 7 3 7 4 4 5 3 0 1 Bucyrua... Second National S Do First National-.. 60-966 C C C C C i l i e a r e n l c r v i d c D l D D D D D D D n e e i i a l o v o o n o o o o o n a i . g n n ll t a d e o t n i. . A M C C F S F F F G B F e i i o i e i i t a e a f t r r r c l n u i n r t s s r a s o z y m t k t t k r d t s r n e t - e o a N N h a n d N t o N t l h n s f a a N a N N N i a t t N r N C t i t i a d a a i a o o i o o a a t t t t o n n i i i i m t t n N o o n o o i a i a a o o n n n m l a l n a l n n a a t l a a . e i . a l l a l l . o r l l c n . . . e . a - - , l N. A.. 5 5 5 6 1 1 1 1 1 6 6 1 1 3 1 3 - 3 3 3 - - 3 5 7 6 6 3 - 3 3 - - - - 2 2 4 3 3 3 1 9 - - - - - 4 3 4 4 9 2 4 6 5 1 1 0 5 M L N N P i i e e u g t w t w n o s D D D D D D D D n h b c B o o o o o o o o i a u a e - . . . . . . l r s r r L i g t g l h e hton..- D D K C C U F B E F i a o x o i e u a n r a r m l c y s n q i m u m t o h k d s u - m m n t a o S e o e o o n e r b s e n n N s Y r g n c i d e c a e e o D a p i N n a N t N i N e N i t l d o t p a a a s a N a t n t o t N b t i i t i a i s a o o o i u o a i o l t n n n r t . i t n g n o a i a a a N o h l a L n l l n V l a a . a L t . N l i . o . . n A aL , 6 6 6 0 0 0 -1 8 8 8 8 8 8 - -1 5 8 8 2 8 - - - - - - 1 2 2 2 2 1 9 1 6 - - - 9 0 2 7 4 1 2 9 1 2 9 6 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

198 FEDERAL RESERVE BULLETIK. AUGUST lt 1915. List of member banks which have joined the collection system List of member banks which have joined the collection system of the Federal reserve banks—Continued. of the Federal reserve banks—Continued. DISTRICT No. 4—Continued. DISTRICT No. 5—Continued. City or town. Name of bank. n T u r m an b s e i r t . City or town. Name of bank. n T u r m an b s e i r t . PENNSYLVANIA—<JOntd. SOUTH CAROLINA—COntd. Pittsburgh Mellon National 8-26 Spartanburg First National 67-33 Do Monongahela National 8-21 Sumter City National 67-65 Do People's National 8-13 Do National Bank of Sumter 67-54 Do Second National Bank of Alle- 8-83 Waterboro First National 67-195 gheny. Do Third National 8-10 VIRGINIA, Do Union National S-12 Do Western National 8-23 Alexandria Alexandria National.. 68-109 Plumville First National 60-1306 Do Citizens National 68-108 Tarentum Peoples National. G0-587 Broadway........... First National 68-321 Titusville Second National 60-511 Charlottesville National Bank of 68-131 Turtle Creek First National. 60-735 Fairfax do. 68-356 Uniontown Second National 60-683 Fredericksburg Planters National 68-136 Washington Citizens National 60-294 Gate City First National... 68-269 Leesburg Peoples National 68-219 Luray Page Valley National., 68-237 DISTRICT No. 5. Lyncnburg First National 68-72 Do Lynchburg National.. 68-73 Do Peoples National 68-75 DISTRICT OF COLUMBIA. Manassas............. National Bank of 68-240 Petersburg Virginia National 68-85 Washington- Columbia National., 15-1 Richmond. American National.... 6S-6 Do District National... 15-12 Do Broadway National... 68-30 Do Franklin National.. 15-84 Do Central National 68-25 Do First National *68-l MARYLAND. Do Manchester National. - 68-113 Do Merchants National 68-4 Annapolis Farmers National , 65-35 Do National State & City. 68-5 Baltimore Farmers & Merchants National. 7-7 Do Planters National 68-2 Do First National 7-14 Roanoke American National 68-62 Do Merchants-Mechanics National, 7-11 Do First National 68-54 Do National Bank of 7-1 Do National Exchange 68-56 Do, National Bank of Commerce.., 7-4 Warrenton Peoples National .. 68-226 Do National Exchange 7-16 Do Fauquier National 68-225 Do, National Marine :... 7-10 Waynesb oro First National 68-227 Do Old Town National 7-17 Do Second National 7-6 WEST VIRGINIA. Do. Western National 7-13 Catonsville First National 65-148 Bluefield First National Cumberland Third National 65-2 Charleston... Charleston National.. 69-36 Frostburg Citizens National 65-53 Martinsburg. Citizens National 69-68 Hagerstown Peoples National 65-21 St. Marys First National 69-177 Hancock First National 65-119 West Union.. do 69-217 Oakland Garrett National , 65-97 Sykesyille Sykesville National , 65-128 NORTH CAROLINA. DISTRICT No. 6. Goldsboro National Bank of. 66-123 Greenville do. 66-153 ALABAMA. Louisburg Farmers National 66-511 Do First National 66-223 Armistnn First National Oxford do 66-172 Athens do Salisbury .do. 66-90 Atraore do Statesviile Commercial National.. 66-140 Birmingham do Wilmington '. Murchison National... 66-2 Do Traders National Wilson First National 66-111 Luverne First National. Winston-Salem Merchants National... 66-50 Mobile Bank of Mobile, National Bank- Do Peoples National 66-48 ing Association. Prattville First National SOUTH CAROLINA. do Talladega Isbell National Aiken First National 67-136 Do Talladega National Anderson Citizens National 67-60 Bennettsville. Planters National 67-155 FLORIDA. Bishopville... First National 67-391 Charleston Germania National 67-16 Pensacola .,, National Bank of Commerce... Do Peoples National 67-3 Peoples National Columbia National Loan & Exchange. 67-26 Do National State 67-24 GEORGIA. Do Palmetto National 67-25 Do Peoples National 67-30 Atlanta American National Do Union National 67-28 Do Atlanta National Conway Peoples National 67-454 Do Fourth National Florence First National 67-80 Do Fulton National Greenville Fourth National 67-51 Do Lowry National Laurens Enterprise National 67-117 Do ThlrdNational Lexington Home National 67-264 Cordele Cordele National • Newberry National Bank of 67-109 Cornelia First National Orangeburg... Edisto National 67-92 Dawson Dawson National Rock Hill National Union 67-71 Dublin City National Spartanburg.. Central National 67-35 Do First National Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

AUGUST 1,1915. FEDERAL EESERVE BULLETIN. 199 List of member hanks which have joined the collection system List of member banks which have joined the collection system of the Federal reserve banks—Continued. of the Federal reserve banks—Continued. DISTRICT No. 6—Continued. DISTRICT No. 7—Continued. City or town. Name of bank. n T u r m an b s e i r t . City or town. Name of bank. n T u r m an b s e i r t . GEOEGIA—continued. ILLTNOIS—continued. Fort Valley.. First National Kansas ... Farmers National 70-685 Macon....... American National Lewistown Lewistown National , 70-602 Do Citizens National Mattoon National Bank of Mattoon , 70-207 Do Fourth National Milford First National 70-76S Do Macon National Moweaqua ....do 70-720 Milledgeville. First National Neoga. Neoga National 70-S47 Quitman do Newman Newman National 70-1491 Sandersville.. .do.., Peoria Central National 70-9 Sparta .do... Do Commercial German National. 70-1 Sylvester..... .do., Do First National 70-1 Valdosta .do.. Rockford Forest City National 70-44 Savannah.... National Bank of Savannah.. Do Third National 70-40 Do Merchants National Do Winnebajro National 70-39 Steward First National 70-1603 LOUISIANA. Sycamore Sycamore National 70-452 Warren mal Farmers •70-763 New Orleans- Hlbernia National Do New Orleans National.. INDIANA. TENNESSEE, Anderson National Exchange. 71-73 Aurora FirstNational 71-374 Centerville First National Boswell do. 71-620 Do Citizens National Brazil RIddcll National 71-222 Cha D tt o anooga... Firs d t o N . ational C B o ro lu o m kv b i i l a le City N Fi a r t s io tN na a l t i B on ro a o l kville. 7 71 1 - - 4 4 0 6 5 3 Do Hamilton National Conners ville do 71-268 Phoenix National Covington ..do. 71-4S5 Columbia First National Fort Wayne German American National. 71-27 Etowah National Bank of Franklin Greenwood FirstNational 71-520 Franklin Peoples National Hammond Citizens German National... 71-S5 Gallatin..."I;... City National Do FirstNational 71-83 Johnson City... TJnaka National Kirklin do. 71-704 Do Holston National Kokomo Citizens National 71-139 Knoxvffle Third National Lafayette Merchants National 71-09 Do Union National La Porte First National 71-179 Do First National Lawrenceburg Dearborn National 71-394 Lawrenceburg.. American National Logansport First National 71-125 Lebanon Lebanon National Martins ville Citizens National 71-362 Bo First National Peru FirstNational 71-172 Murfreesboro. - - American National Rushville Rush County National. 71-357 Nashville Broadway National Do Rushville National 71-356 Do Cumberland Valley National.. Shelbyville Farmers National 71-203 Do Fourth and First National Tipton.. Citizens National 71-587 Do Tennessee Hermitage National Va Valparaiso National 71-276 Do Peoples National Shelbyville,.... First National Springfield^ Peoples National IOWA. Woodbury First National Armstrong...-, FirstNational , 72-905 Burlington Merchants National. 72^54 Clarion FirstNational 72-377 DISTRICT No. 7. Clinton Merchants National. 72-47 Corning Farmers National... 72-445 Estervfile FirstNational 72-261 Galva do 72-1081 ILLINOIS. Gowrie , .do., 72-722 C B h lo ic o D D D D D D D a m g o o o o o o o o i - . . . . n . . g .. ton. , S C C C C D F F F t o i i o a e o r n w t a r r o i r l r n n o s s t u o n t o v e t t t t i m r n i o D N s e N E a n N a . d r l e e a s x e l a . a t . n t T a c t N t i N i t r i h o r o a b o a u a a n l n o n t n s t i a a r & a i t o g n l o l l n e C n C N B a a o N o l a a l m m a t n i t p k o m i a o n e n o n a r y f a l c l i E o a n f l g I N l l l e a i - - - 7 2 2 2 0 2 - 2 - - - 1 1 1 2 - 1 2 2 - 1 0 2 0 0 0 - - - 2 1 5 9 3 3 3 5 5 V W W W R S N I M P n i e i e e o a d e a a l t n w l u t e p b v e i D e w D s r x l s p e t r e s c o t o r o i e l o e t a C c l n o o n y r n k o i n d t C y en it c y e .. . . . . . , N C F F . . . . . . i i o o . . . r r . . . . . n r . . s . s . . d d d d t d d d d t t t h o o o i N N o o o o o n w . . . . . e a a , . . . . e n t t s i i t o o t a e l n n r a a n N l l a N ti a o t n io a n l. a . . l . . . . 7 7 7 7 2 7 7 7 2 7 7 4 2 2 - 2 2 2 - 2 1 1 4 4 2 - - 1 - - - - 2 8 3 9 2 1 2 0 1 1 - - 0 3 8 5 7 6 3 8 6 7 - - 5 9 3 3 7 7 6 6 1 8 2 1 Do.... Live Stock Exchange National. 2-147 Do.... National Bank of the Republic. 2-13 MICHIGAN. Do.... National City 2-22 Do.... National Produce 2-59 Alpena Alpena National 74-122 Do.... Ravenswood National 2*206 Detroit First and Old Detroit National 9-1 Do.... Washington Park National 2-144 Do Merchants National 9-27 Clifton.... FirstNational 70-1013 Do National Bank of Commerce.. 9-24 DeLand.. do. 70-1059 Grand Rapids Grand Rapids National City.. 74-2 Divemon. ..do. 70-125S Kalamazoo .... Kalamazoo National 74-45 F G i a n le d n l a ay... Gal . e d n o a . National. 7 7 0 0 -1 -4 29 2 7 0 M Po o r r t e n H c u i ron F F i ir r s s t t N N a a t t i i o o n n a a l l Exchange 7 7 4 4 -3 - 9 9 6 1 Harvey... FirstNational.... 70-309 Reed City FirstNational 74-369 Joliet do 70-59 Saginaw Second National 74-22 Do.... Joliet National... 70-61 Vassar Vassar National 74-375 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

200 FEDERAL RESERVE BULLETIN. AUGUST 1,1915. List of member banks which have joined the collection system List of member banks which have joined the collection system of the Federal reserve banks—Continued, of the Federal reserue banks—Continued. DISTRICT No. 7—Continued. DISTRICT No. 8—Continued. City or totorn. Name of bank* n T u r m an b s e i r t . City or town. Name of bank. n T u r m an b s e i r t . WISCONSIN, ILLINOIS—continued. K M e a n d o is s o h n a F B i a r n s k t N o a f t W io i n s a c l onsin 7 7 9 9- - 5 6 0 5 Carm D i o N Fi a r t s i t o n N a a l t B io a n n a k l of Canni 7 7 0 0 - - 5 52 2 3 2 Milwaukee First National 12-2 Carriers Mills First National 70-707 Do National Exchange 12-4 Carrollton Greene County National 70-600 Do Wisconsin National 12-7 Carterville First National. 70-514 Monroe First National 79-206 Centralia Old National 70-235 .... do 79-243 Christopher First National 70-1221 Rio .... do 79-394 Cobden .do.. 70-1230 Watertown Wisconsin National 79-127 Colleen Cofieen National. 70-873 White Water First National 79-232 Collinsville First National.... 70-294 Columbia ....do 70-1232 Crossville do..... 70-1242 Dahlgren ....do 70-1005 DISTRICT No. 8. Dongola First National. 70-1703 Duquoin .do. 70-370 East St. Louis Drovers National 70-20 ARKANSAS. Edw D ar o dsville S F o ir u s t t h N er a n t i I o l n li a n l ois National 7 7 0 0 -4 -1 0 7 8 B B e at n e t s o v n ille -• Firs d t o N . ational, S 81 l- - 1 2 1 9 5 5 E E f l f d i o n r g a h d a o m . d do o . ..... 7 70 0 - - 4 4 8 5 4 5 Bentonville Benton County National - 81-170 Equality do 70-1283 Do First National 81-171 Fairfield Fairfield National., 70-572 Berryville do. 81-251 Do First National 70-571 Cotton Plant do. 81-22S Farmersville ....do 70-1696 De Queen ....do 81-167 Flora ....do 70-535 DeWitt ....do 81-246 Freeburg ....do 70-1310 Eureka Springs ....do 81-335 GiUespie Gillespie National.. 70-609 Fayetteville.. Arkansas National. 81-S8 Golconda First National 70-837 Do First National 81-89 Goreville do 70-1324 Forrest City do. 81-142 Gorham .do. 70-1302 Fort Smith American National 81-33 Grand Tower .do. 70-1328 Do ., City National 81-38 Granite City .do. 70-225 Do First National 81-31 Do Granite City National.. 70-226 Do Merchants National 81-32 Grayyille Farmers National 70-655 Gravette First National 81-270 "Do First National 70-654 Green Forest .do. 81-550 Greenfield .do. 70-811 Hope Citizens National., 81-110 Greenville Bradford National... 70-501 HuntsviUe First National.... 81-263 Griggsville Griggsville National. 70-783 Jonesboro ,do 81-68 Harrisburg CCiittyy NNatiaonilal 70-385 Judsonia .do. 81-373 Herrin do 70-330 Lewisville .do. 81-383 Do First National 70-328 Morrillton -do., 81-554 Highland ..,.do 70-542 gould .do.. 81-79 Hillsboro Hillsboro National 70-480 National Bank of Commerce. 81-80 Do Peoples National 70-481 Pine Bluff Simmons National 81-43 Irving Irving National 70-1376 Prairie Grove.,, First National 81-255 Jacksonville Ayers National 70-164 Rogers .do.. 81-123 Jersey ville National Bank of Jerseyville... 70-444 Siloam Springs.. do 81-146 Kinmundy............. First National 70-868 Springdale do 81-189 Lawrencevllle ....do 70-494 Stuttgart , do 81-55S Litchfield ....do ;. 70-352 Texarkana , State National. 81-75 Do .,. Litchfleld National 70-354 Van Buren , First National.. 81-102 McLeansboro I First National 70-^81 Waldron do 81-240 Do Peoples National 70-680 Walnut Ridge.. do 81-17* Madison First National.., 70-404 Marine do 70-1852 ILLINOIS. Marion do 70-317 A A B B C C C B C A B B B B A B A B B D a a a a r r r r r e e u l n e a l l l e o b i o i l i r t t r r l n n r n n r g d e o l a b l l e w i o r D D D o y D t l l D D e D k a n o g h n s m y o d o n k v l n e e d n o e o t o n o o e o n v p i o o r s a p d l i o n t l n l l o a H o e e l r t e r l t w e t il n l — C F C A C F F B A N F F F F A C A F i i i a a a a i i i i r l i l a l n d r r r r r e r r t o b i r r t r s t s s i r s o s , s n s o b . x . l m i o i z t t d d o d t t d d d t t t i o o a n o a e k n o o o o o N N o e N N n n N N N n N n n p v N . . N r . . a d d . s . a a . a s a o a i a a a N l a l e a t t a t t t t t r N l t i i i t i i N i r i l t t B e a o o i i o o o o o e i o o a N o t n n C a n n n a n N n i t n N n n a a t n a a a o a a i a o i a a o l l a a l l l l k l t a o n , u l t l i n l t i n . a n o . . i o a o . o l . a t . n f . l . y n . l n . a . . . , a B , l a , N l . l e . . . a n . . t ; l " i d ; o . . . n . . , , . a " l! " ' \ . 7 7 7 7 7 7 7 7 7 7 7 7 7 7 7 7 7 7 7 7 7 0 0 7 7 7 0 0 7 0 0 0 0 0 0 0 0 0 0 0 - 0 0 0 0 0 0 0 - 0 0 - - 0 - 1 - - - - - - - - 1 - ^ - - - - - 1 - - - - 1 1 - 7 7 7 4 6 3 1 0 1 1 5 3 6 8 5 7 1 7 6 5 1 1 1 1 5 7 7 9 8 6 5 7 2 5 4 7 9 7 5 6 2 9 4 2 3 3 6 5 3 2 6 7 6 1 6 0 3 1 4 1 5 4 9 7 5 6 2 0 8 7 8 9 2 0 5 M M N O M M M M N N N N O M M M O M M o o e a b ' a d a a e o i o o o o o u F b s l t k r l r s t i u u u u u u r l i o a r h r i D D D D D D o n c D o s p o s n n i n o n n n l n v o s t m . s l h n o o O d o o o d t p o t t t a g . o i a u y . a C s l o d i C V S n O t l C s l s l t a e i t i a b e t l h S i e s y i r t r o r v t m y n l o r e i o o c e n n k l g Yards :... ; T F F A C F N N O C F F H F F F F . N F . . . . . a i i a i i i h i i i i i i o a m . . a a . r r r r r r t r r t l r r . . i . t k y m y s t s s s s s s s . m m d d i r e d i B t d t t t t d d t d t o t o d o o o r o N o o e o m N o e e n N N N i N N N n N N N c r ; . N r l a a a s i a t a a s a a a a a a l s a t a l a t t t t n t t t i t N & N t t i i i i i i o i S i t S N o o o o o i i o o i o n a t N o o o a t n n n n n n n M o a n a t a t n n n a a a i a a a a a c t t i l a o e i a o l l l l e a l a l l k t o l n . i l r n l l * . o n c . a Y . . a * . . n h a , l , l . , . a l a a r n l d . t . s s N N a a t t i i o o n ' n a a . ; l l . . . . I ! | 7 7 7 7 7 7 7 7 7 7 7 7 7 7 7 7 7 7 7 7 0 7 0 0 0 7 7 7 7 7 0 0 0 0 0 0 0 0 0 0 0 0 0 - 0 0 0 - 0 - - 0 0 0 - - 0 0 - 1 1 1 1 1 1 1 - - - - - - - - - - - - - - - - - - - 6 2 6 8 7 6 7 2 2 5 2 4 6 3 5 4 6 3 5 4 8 4 6 4 4 4 6 2 8 2 5 0 7 8 3 8 2 2 6 7 0 7 4 2 2 2 6 2 2 4 2 4 2 7 2 3 5 8 2 6 3 6 9 3 4 1 7 0 1 3 3 6 3 7 3 6 8 1 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

AUGUST 1,1915. FEDERAL EBSEEVE BULLETIK, 201 List of member banks which have joined the collection system List of member banks which have joined the collection system of the Federal reserve banks—Continued. of the Federal reserve banks—Continued. DISTRICT No. 8—Continued. DISTRICT No. 8—Continued. City or town. Name of bank. n T u r m an b s e it r. City or town. Name of bank. n T u r m an b s e it r. ILLINOIS—continued. INDIANA—continued. Olney First National. 70-412 Vevay First National. 71-555 Palestine ....do 70-749 Vincennes... do. 71-153 Pinckneyville.. - ....do 70-534 Do. German National 71-154 Pittsfield do 70-636 Do Second National 71-165 Quincy Quincy National. 70-51 Wadesville... Farmers National..... 71-936 Do Ricker National.. 70-49 Washington. Peoples National 71-263 Raymond First National... 70-914 Do ;. Washington National. 71-262 R St o . o E d l h m o o use . d d o o. 7 7 0 0 - -7 6 9 1 4 6 Wlnslow First National 71-958 St. Francisville. .do. 70-753 St. Peter .do. 70-1111 Bardwell First National 73-303 Salem Salem National. 70-545 Bowling Green.. American National.. 73-74 Sandoval First National., 70-706 Do Citizens National.... 73-73 do- 70-1577 Campbellsville., Taylor National 73-281 Shawneetown. City National.. 70-667 Carrollton Carrollton National. 73-220 Sparta First National. 70-506 Do First National 73-219 Staunton ,do 70-401 Columbia .do.. 73-310 Stunner .do. 70-747 Danville Citizens National 73-124 Tamaroa .do. 70-900 Fulton First National 73-189 Trenton ..do. 70-690 Glasgow Farmers National 73-197 Ullin .do., 70-1632 Do....' First National 73-196 Vandalia .do. 70-511 Do , Trigg National 73-195 Vienna .do. 70-826 Harrodsburg..., First National 73-164 Waterloo .do. 70-1747 Do Mercer National 73-165 Waverly .do. 70-710 Henderson , Henderson National 7^n5O Wayne Cil .do. 70-1651 Hodgenville.... Farmers National 73-338 West! ..... .do. 70-630 Do La Rue National 73-339 West Salem.. .do. 70-967 Hopkins ville... First National 73-70 White Hall. do 70-519 Lawrenceburg.. Anderson National 73-223 W W o it r t D D de o o n W W W Ol h a i a t l i n t l t d e N N H N a a t t a a i i o t o l i l n n o N a a n l l a a l tional. , 7 7 7 7 0 0 0 0 - - - 1 1 1 -5 7 6 6 7 1 7 7 0 8 8 3 L L o eb ui a D D D s n v o o o o i n lle L C C A F a i i i m t t r w i i s z z e t r e e r e i N n n c n s s a a c n t e N N i b o a a N u n t t r i i a a o o g t l i n n o N a a n l l a a t l ional 7 7 2 3 2 3 2 1 - 1 - 2 1 1 - - 2 2 1 7 - 4 4 5 0 0 Do Louisville National Banking Co, 21-20 J H J L C C H B B C C L L B E B F a e o y l a o o o v h a i I e o u s f n r c r o n n d o r o f a a r l d n l k t y e t l g D f r n D n n D D n i n D D o s a t s o l n d r o v e v B s v e e i n l n s o o o o o o r e o o v n e i l i s y i o d d U r t l f n l t t i g o e l a l n e l o l e e e n n l b e v w e c u i n l h r l e g . . . . . . , . . . . C B C C C C H B C L F F F F F F O . . . . . . . . a i i i a i o y i i i e a i i o . l . . . r r r r t t t t r d r r d . . n . r . n i i y y l s s s s d m m d d d y z d z l f d d n t t t t n s S a o e e o o o d N o N o o e e v e e N N N n N n n r t o l y r r a a d i a d s s t n a a a a s s l o e t t t l t t t e t i i N N N e N n & & i i i N i o o N o o o o N a a n n a a N N a M n M n n n a t t t t a a a t i i a i a a t a i a a i o l o l o i o t e e l o l l l t t o i n n n r n r i i o n n o c o c a a a a n a h a h n l l n l l a l l a a a a l n n l l. t t s s N N a a t t i i o o n n a a l l . 7 7 7 7 7 7 7 7 7 7 7 7 7 7 7 7 7 7 7 7 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 - - - 7 7 - - - - - - - - 7 - - - - - - - - 8 3 4 S 1 5 4 7 7 5 6 3 2 0 3 2 4 4 4 1 1 5 1 1 1 7 1 8 1 3 8 7 9 8 9 3 1 4 8 8 9 2 - - U - 6 2 4 2 5 1 5 1 0 8 2 5 1 3 1 9 5 0 0 1 0 2 S S S W P M M P M M P E O O p e c a r r u w w a I o a o b i r o o d s c y n i n d r r e t e s k n v u D D D D D D D D D f g e t c t i n e n l i g s l c i e s e o a o o o i o o o o o e l c s v t d f f a o l t n l o b e f i i v h d o e n e e n l l f o i n l l n l i v l o e r d e l o c i e l l e d l . e . . . . . . . . . . N A N S C F C M U N F F F N . U U F F . . . o a i i i a i i i l . a a . n a n a n o r r t r t r l . r . u . . r t i t i t t e i i s s i s s . r d m d m z . z i i i i o o t d t d g t t n t t o o o o d e h e e o o n n o a o e e n n n N n d N N N n n e o C n . r r a a a a N s s r N - f a s a a a s o S n l l l l i t t t t N N e a a u N N t i i i i B D D B l a o t N o o o t n d a a i i a a t n a n n n a e o e t t t o e a t t y i i n n p p a a a a n i i N s t o o n o o l k i l l l o k o a n n o a N N n a n s s l a l a t n o i i > t a a . a t a t l l i a f - l l f t o t l i i C K n o o a o n n e l m a a n .. l l - t . • . - m u . . c e k rc y e .. . . . . , 7 7 7 7 7 7 7 7 7 7 7 7 7 7 7 7 7 7 2 7 2 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 1 2 3 3 2 3 3 1 - - - - - - - - - - - - - - - - 2 1 1 1 3 1 2 1 1 2 2 2 1 2 6 1 - 1 - - - - 2 4 3 4 5 4 1 3 6 0 8 0 1 6 4 7 6 1 6 6 3 3 - - 1 3 7 4 2 1 1 9 6 4 8 6 6 2 9 4 7 0 8 3 2 8 Mad D is o on.. N Fi a r t s i t o N na a l t i B o r n a a n l ch 7 7 1 1 - - 2 2 8 8 2 1 MISSISSIPPI. MiUtown. First National 71-834 Ackerman First National 86-201 Mount Vernon.. do. 71-316 Columbus National Bank of Commerce. 85^7 New D D A o o l .. bany M N Se e o c w u on n A d t l V N b e a a r n t n i y o o n n N a N a l t a i t o i n on al a . l . . . 7 7 7 1 1 1 -3 - - 8 9 1 9 0 7 C Tu o p ri D e n l t o o h — C Fi it r i s z d t e o N n . s a . . t N io a n ti a o l nal 8 8 8 5 5 5 - - - 1 1 1 1 0 2 0 9 8 N P P R S S O O P P O T S e o h e r a u e o e r d w i y t l t s e l w l c n o e e o l l e e m l D D D k n c i a r b C k n y v s p n e H o o o o u s a v i b a t o s v u t r i o a n u y l r n i r r l n l t r e l m g e o ; ny. , , . N C B F F P F S T F F F F N e i i a i a i i i i e o a a r r r r t r r y t r l z t i s s t s s s s o l m z i m i d e d t t t t t t o o C k e m o o N N e N N N N n o n n a i . . r a u a t s a a a a a a a s y N l n l r t t t t t t N N i i i i i i - B a N N B o o o o o o W a t a n a n n n n n i a t a a t o n i a a a a a a a t t i n o i i n l o k l l t l l l o o t n e a n n n r o a o l a s a a l f f l l l N O S a u rl t l e i l o i a v n n a a s n l . . . . , . . . 7 7 7 7 7 7 7 7 7 7 7 7 7 7 7 7 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 - - - - - - - - - - - - - - - - 5 8 5 5 2 8 4 6 6 9 2 4 4 2 3 4 6 4 7 5 9 8 6 3 3 0 9 2 1 9 8 1 4 4 0 9 4 0 2 0 1 8 8 7 0 7 3 1 A B B B B C C C C C C C C C a o a o o h r a a a a a e p u b l p a s i n r n o l s p i n i r s f n o w f e t n t v l f o v e o o r o s e e v a a o l s i G r n w l e t l l i n r v l r t l o l i i o t e i i i l a r n h a l c e n M l a k C e r I d i S t e S y a O u URI. . C F F M F .. i i i e . o r r r . n . s s s . n d d d d t d d d t t t l r O o o o t o o o a N N N e . l a . a a a u N t t t i i i o a o N o n t n n i a a o a a t l l n i l . o . a . - n ^ l . - a ; l • . 8 8 8 8 8 8 8 8 8 8 8 8 8 8 0 0 0 0 0 0 0 0 0 0 0 0 0 0 - - - - - - - - - - - - - - ^ 5 5 3 5 3 2 2 3 5 2 1 3 3 5 9 9 0 8 4 0 9 0 5 3 0 2 1 8 2 4 7 2 3 3 8 9 1 6 5 2 6 7 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

202 FEDEEAL EESEEVE BULLETIN. AUGUST 1,1315. List of member hanks which have joined the collection system IAst of member banks which have joined the collection system of the Federal reserve banks—Continued. of the Federal reserve banks—Continued, DISTRICT No. 8—Continued, DISTRICT No. 9—Continued. City or town. Name of bank. n T u r m an b s e i r t . City or town. Name of bank. n T u r m an b s e i r t . MISSOUBI—continued. MINNESOTA—continued. Chillicothe Citizens National 80-139 Alexandria .do 75-157 Do First National.......... 80-138 Amboy do 75-539 Clinton Clinton National 80-180 Anoka Anoka National- 75-141 Do Peoples National 80-181 Atwater First National... 75-480 Columbia Boone County National.. 80-85 Belle Plaine ..do. 75-317 Do Exchange National 80-86 Blackduck ..do. 75-S62 Eldorado Springs First National 80-276 Braham , ,.do. 75-665 Green City American National. 80-562 Ceylon ..do. 75-587 H J H J H K L a e e a a o f i c r f b m n k l e k d D a n s r s i e n s o o i l v o n b . o t n i o n n l a l n l e City H C F F F C P F e i i i i i i a r r r t r t o i n y s s s s z p t t t t n e l N N i N e N N n b s a s a a a a a t N t t t t i N l i i i i o o o o o N a a n n n n t n t a a i i a a a a o l o t l l l l i n . n o a a n l l a . l 8 8 8 8 8 8 0 0 S 8 0 0 0 0 - - 1 0 1 - - - - I - 3 1 5 3 4 M 4 6 7 3 6 2 1 1 1 S 8 2 3 1 2 4 C D E F H G o r l e a r b o l a e l e o o s n r D y w t k d R a o s d t i R L o v n a a e p k r e ids M F ,, i . e r . . . . . . . . . s . r d d d d d d t c o o o o o o h N . . . . . a a n t t i s o n N a a l tional. 7 7 7 7 7 7 7 7 5 5 5 5 5 5 - 5 5 - - - - - 1 1 4 7 5 1 - - 3 1 7 9 7 1 1 3 7 9 7 9 8 1 9 9 Linn Creek ,. do.. 80-742 Hawley ..do. 75-411 Lud B lo o w , F Fa ir r s m t e N rs a t N io at n i a o l n . a .. l . , 8 S 0 O - - 7 7 6 6 7 8 Hendncks. F _. a A r o m . ers National 7 75 5 - - 5 5 4 4 9 8 Marshfield do. 80-465 Do First National Bank of West 75-160 Memphis , Scotland County National 80-339 Hopkins... Minneapolis. Mexico First National . 80-148 Hutchinson... Farmers National 75-1035 Milan do. 60-299 Jackson 75-216 Monett ..do.. 80-207 Do First National 75-217 Mountain Grove ..do.. 80-383 Lake Park... Jackson National 75-430 Palmyra ..do.. 80-307 Lanesboro..., First National 75-359 Pierce City ..do.. 80-328 LeRoy ...ddoo., 75-441 Polo .do., 80-698 Litehfleld.... ..do. 75-188 Purdy. .do,, 80-1175 Little Falls... German-American National 75-109 Rid, .do., 80-564 Long Prairie. First National 75-306 St, __ .do.. 80-98 Luverne Farmers National 75-176 St. Louis Central National 4-6 Do National Bank of Luverne 75-177 Do Mechanics-American National. 4-32 Mankato First National 75-33 Do Mercantile National 4-20 Do National Bank of Commerce... 75-37 Do Mercantile Trust Co 4-21 Do National Citizens , 75-34 Do. Merchants-Laclede National..- 4-19 Minneapolis.. First & Security National 17-2 Do 'National Bank of Commerce. - 4-26 Do Metropolitan National 17-62 Do State National 4-28 Do Northwestern National 17-1 Do Third National 4-29 Do Scandinavian-American Na- 17-7 Salem First National 80-371 tional. Sedalia Citizens National 80-53 Moorhead First National 75-130 Do Third National 80-55 Do Moorhead National 75-131 Seymour Peoples National 80-665 New Prague First National 75-271 Bpringfleld McDaniel National 80-29 Olivia Peoples First National 75-362 Stee D lv o ille F U i n r i s o t n N N at a io ti n o a n l al 80 8 - 0 5 - 8 8 9 O Pa s r a k k e is rs Prairie., First National 7 7 5 5 - - 3 5 5 6 3 7 Trenton Trenton National 80-158 Princeton ....ddoo 75-265 Unlonville Marshall National 80-331 Ked Lake Falls. Fanners National. 75-240 Do National Bank of Unionville.. 80-332 Rush City First National 75-361 Versailles First National 80-398 Rushmore do. 75-611 Warrensburg peoples National 80-194 St. Paul American National 22-7 Washington First National 80-220 Do Capital National 22-5 Wellston....... do 80-110 Do First National 22-1 West Plains . ...do ;;... 80.-255 Do Merchants National 22-3 Windsor . ...do 80-295 Do National Bank of Commerce. 22-8 Sleepy Eye First National 75-107 TENNESSEE. Springfield do .• 75-278 Stephen ..do. 75-465 Brownsville First National .... 87-141 Tyler ..do. 75-471 J U C M P R a a o i n c e p r v i k m i l o D D D D D i s s e n n p O o y o o o o g h n C t i o s i n ty " * " ; " " ; * * " ; " . . . . . . . . . . . . . , . . . . F T S S C M N , F . e e i . i h e a . e r r c c n i t s s r o u r i d t d c t t o d n r r o a o a n N i N d n t l N a y t a a N l S i a t t l N i i C t e t a o o a i t o i a n n N t i t e o n y a t a a i n a l l N t o l a io n l a n t a i a l o . l n .: a . l . . . 8 8 8 8 8 8 8 7 2 7 7 7 2 2 2 7 7 7 - 6 - - - 6 6 5 6 5 1 1 - - - - - - - 6 5 6 6 5 6 1 0 7 2 6 0 9 5 7 4 5 2 2 W W W A B B B C i a o o n i a h l k l z n l a t e l i e e e c r n m a a m r r o g t d v a n o s a r i n d n ll M a e ONTANA. , N F A Y N F F i i i a e n a r r r . l t t s a . s s l i i d t t c o t o o o ' o w N . N n N n n a a s a a a d l l t t t t o a i i i B B o o o n N a n a e n n n n a a a a N l k k l l ti a o o o t n f f i o a G W n l a a h l ll e a a ti t n o n V .. a . l , - 7 9 7 7 9 9 9 9 5 5 3 5 3 3 3 - 3 - - - - 3 1 - 1 2 - 2 - 6 3 0 0 3 3 9 9 0 8 4 3 8 5 6 7 Deer Lodge. United States National 93-77 Forsyth..... First National 93-93 DISTRICT No. 9. Glasgow do. 93-95 Do Glasgow National.. 93-96 Great Falls., First National 93-15 MICHIGAN, Hamilton... ....do 93-84 A A L M d ' i A a u tk n n in s i e si M n I g N . N .. E . S . O .. T .. A . . A F F B i i d a C r r r a s s o a t t N g u N N a n a a t t a C y i t t o i . o i o o n u n n a n a l a t l y l B N a a n ti k o n o a f l Alger 7 7 7 5 7 5 - 4 4 - 1 - - 3 7 2 1 0 1 6 9 4 7 1 2 I M M H L K s e a m a i a w s r l l s l a i t i e a o s y s m p u to l e a l w l. n .- . . . C F . . . . . . i o . . . r . . . n s d d d d r t o o a o o N d . a N ti a o ti n o a n l _ a . , . l . . . 9 9 9 9 9 9 3 3 3 3 3 3 - - - - 2 1 2 - - 2 0 4 7 3 0 1 8 8 3 7 1 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

AUGUST 1,1915. FEDERAL RESERVE BULLETIN. 203 List of member banks which have joined the collection system List of member banks which have joined the collection system of the Federal reserve banks—Continued. of the Federal reserve banks—Continued. DISTRICT No. 9—Continued. DISTRICT No. 9-Continued. City or town. Name of bank. n T u r m an b s e i r t . City or town. Name of bank. n T u r m an b s e i r t . MONTANA—continued. WISCONSIN—continued. T M R Th o o o r w n o e a r e n e n s F e o n r d k . s .. . Firs - .d d d t o o o N . . ational, 9 9 9 9 3 3 3 3 - - - - 1 1 1 1 2 4 1 1 1 6 1 2 R S S u h ic p a e w e D r L a i o o n a r o ke U F G i o n r r i s m t d t e o a d N . n . S * a A t t i a o m te n e s a r i l N c . a a n ti o N n a a t l ional. 7 7 7 9 9 9 7 - - - 2 2 2 9 1 1 5 -4 9 6 0 Waupaca Old National 79-256 NORTH DAKOTA. Wausau First National 79-89 Do National German-American. 79-90 Bismarck First National 77-29 Weyauwega First National 79-365 Bottineau ....do 77-91 Bowman .do. 77-229 Brinsmade .do. 77-432 DISTRICT No. 10. Buffalo .do. 77-527 Cando Cando National. 77-89 Do First National.., 77-88 Churehs Ferry. ....do 77-235 COLORADO. Crary... ....do 77-380 Devils Lake... ..-.do 77-34 Akron First National Dickinson Dakota National. 77-49 Alamosa Alamosa National Drayton First National... 77-190 Do American National East Fairvnieew. .do. •77-565 Arvada First National Ellendale. ..-.do 77-88 Ault Farmers National Fargo..... Fargo National 77-3 Do First National First National 77-1 Berthoud Berthoud National Do Merchants National. 77-2 Do First National Flngal , First National 77-211 Boulder Boulder National Finley -do. 77-205 Do First National Grand Forks-.., .do. 77-15 Do National State Hampden ..do. 77-347 Brighton First National.... Hatten . Farmers & Merchants National 77-153 Brush do. Hettinger First National 77-136 Do Stockmens National... Hope Hope National 77-129 Buena Vista do.. Hunter..... First National 77-287 Canon City .do.. Lidgerwood. Farmers National 77-115 Do • Fremont County National Litchville First National .V 77-227 Carbondale First National Linton .do- 77-172 Castle Rock First National of Douglas McVille .do... 77-805 County. Mandan .....do 77-45 Cedaredge First National Mannarth do.. 77-651 Center .do.. Milnor Milnor National... 77-174 .do.. Northwood Citizens National. 77-135 Central City Rocky Mountain National... Osnabrock First National.... 77-398 Do.. First National Park River do 77-113 Colorado City Colorado Springs National.... Reynolds .do. 77-265 Colorado Springs.. El Paso National Rolette .do. 77-270 Do Exchange National St. Thomas.... .do. 77-203 Do First National Sentinel Butte. ..do. 77-484 Do Montezuma Valley National. Sheyenne ..do. 77-245 Cortez Craig National Steele ..do. 77-216 Crate First National Tower City ..do. 77-709 Do .do.. Cripple Creek Delta National....... SOUTH DAKOTA. Delt D a o F C i o r l s o t r a N d a o t i N on a a ti l onal A C C H B l r a r o e i l s t d a i t n r g l S g e e L p w t w o r a o i n a k n o t g e e d s . r . . . . . . . P F . .. . e i - r o . s . d p d d t o l o o e N s a N ti a o t n io a n l. al.. 7 7 7 7 8 8 8 8 7 - - - - 8 2 1 2 1 - 9 0 3 7 7 0 6 3 3 2 Den D D D D ve o o o o r .. D F F H U e i e a n r d n m s i e t t v e r i e N l d a t r l o a S N N n ti t a o a a N t t n t i e i a o a o s t l n n i N o a a l n l a a ti l onal Mclntosh First National..., 78-333 Durango Burns National •— Milbank..... ..do. 78-78 Do First National Do Merchants National. 78-76 Eads First National .. Mitchell First National 78-29 Eagle First National Bank of Eagle Do Mitchell National.•- 7S-30 County. Do Western National... 78-32 Eaton • Eaton National Oldham First National -. 78-363 Do First National. Parkston do. 78-159 Englewood .....do... - Pierre. Pierre National 78-53 Florence do.... *•-. First National 78-44 Fort Collins. do .... •*-- Sioux Scandinavian-American Na- 78^8 Do Fort Collins National...... tional. Do Poudre Valley National. -. Vienna First National 78-296 Fort Morgan First National Watertown.. do 78-23 Do ,..,-. Morgan County National.. ."Woonsocket. ....do 78-149 Fountain. First National Fowler -» .do.. WISCONSIN. F G r l u en it w a ood Springs.. Citiz d e o n . s . . National - N E P G M h a e r a i u a i n l l n l l i C s i t t p v o s l b s i w a l i u l r o e r e c g F F N U i i n a r r t i s s i o d t t o n o N N n N a a a l t t a i i B o t o i n a n o n a a n l k l a l o f Manitowoc. • • , 7 7 7 7 9 9 9 7 9 - - ^ 9 - 2 3 2 1 - 9 9 1 9 7 4 0 3 2 8 G G G Gr r o r e a a l e d n D n l e d e a o n y d J a u . n .. c tion.. - . * . . W F F F G i i i r r r r o a s s s o n t t t d d N N N s V - a a a R t t t a i i i u l o o o l b n e n n e y a a a y l l l N N a a t t i i o o n n a a - l l • . . . • 2098—15 5 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

204 FEDERAL RESERVE BULLETIN. AUGUST 1,1915. List of member banks which have joined the collection system List of member banks which have joined the collection system of the Federal reserve banks—Continued. of the Federal reserve banks—Continued. DISTRICT No. 10—Continued. DISTRICT No. 10—Continued. Transit Transit City or town. Name of bank* number. City or town. Name of bank. number. COLOBADO—continued. KANSAS—continued. Greeley Greeley National., Beloit.. First National Bank Do Union National.., Do. German National Bank of Gunnlson. First National Northern Kansas. Hayden , .do.. Bonner Springs. First National Bank Holly ..do.. Burlingame do Holyoke ..do., Burlington Fanners National Bank Hotchklss .do.. Do Peoples National Bank....... Hugo ..do.. Burr Oak Jewell County National Bank. Idaho Springs .do.. Caney Valley National Bank.. Do Merchants and Miners National- Caney Home National Bank Johnstown First National Cedar Vale.'!!!!! Cedar Vale National Bank Julesburg Citizens National. Do Dosbaugh National Bank Do Firs t National Centralia First National Bank Lafayette do. Chanute do. LaJara .do.. Cherokee .do. La Junta ..do.. Cherryvale Montgomery County National Ltunar,.... .••• ..do.. Bank. Do Lamar National Clay Center First National Bank , Las Animas First National , Do Peoples National Bank Leadville American National... Clifton First National Bank Do Carbonate National.. Coffeyville Condon National Bank Littleton First National , Do First National Bank , Longmont Farmers National..., Coldwater. Cold water National Bank Do Longmont National.. Columbus First National Bank Loveland Firs! National , Concordia ..do. Do Loveland National.. Conway Springs.., ..do. Mancos First National Cotton wood Falls. Chase County National Bank.. Meeker do Do Exchange National Bank Monte Vista ....do Council Grove Council Grove National Bank. Montrose Montrose National. Delphos First National Bank Do First National Dlghten do. O lathe do Dodge City National Bank of Commerce. Ordway ....do Edmond First National Bank Palisades Palisades National Edna do. Paonia First National El Dorado El Dorado National Bank Platteville Plattevtlle National Do Farmers <fc Merchants National Pueblo First National Bank. Do Western National ElkCIty First National Bank Bine First National Ellsworth Central National Bank Rocky Ford , do Emporia. Citizens National , Do Rocky Ford National... Do Emporia National , Saguache First'National Englewood First National Salida Commercial National Eureka Citizens National . Do First National Do First National Sedgwick do Do Home National Silverton do Formosa First National , Steamboat Springs do Fort Leavenworth. Army National Sterling...... Farmers National Fort Scott Citizens National.. , Do First National Fowler...... First National .-..., Do Logan County National. Galena Galena National , Telluride First National Garden City First National.- .......... Trinidad do.. Do Garden City National Do Trinidad National.. Garnett National Bank of Commerce... Walsenburg First National Gaylord First National Wellington do Girard do Windsor do Glasco .do. W Yu r m a D y a o , T F .: i h r . e s . t d N N . a . a t . i . t o io n n a a l l Bank of.. G G o o f o f D dl o and F F .. a i . r r . s m d t o e N rs a t N io a n t a io l. n al -. • Great Bend Citizens National KANSAS. Do First National Abilene ,., Abilene National Bank Greensburg Farmers National Do Fanners National Bank Gypsum Gypsum Valley National . Alma Alma National Bank Hamilton First National A A l n m t D h en o o a ny.... ; ... C F F a i i r t r i s m t t e e N n r s a s t N N io a a n t t i a i o o l n n B a a l a l n B B k a a n n k k; H H Ha a a v r r t p e f n o e s r r d v .. i . l . le T H h a e rt f N o a rd ti o N n a a t l i o B n a a n l k of Harper. Do First National Bank Hays City Firs.dt oN.ational, Arkansas City...... Home National Bank Herington.. ... .do. Do ......... Security National Bank Hiawatha.. ..do. Ashland Stockgrowers National Bank.. Highland ..do. Atchison...; Exchange National Bank.^.... Hillsboro.- .do. Do .. First National Bank., Hoislngton ....do Attica do. Holton. ....do Atwood Farmers National Bank Horton do. Augusta First National Bank , Howard do. Barnard do : Do Howard National Baxter Springs Baxter National Bank , Hoxie First National.-. Bcattie. ;.......„. First National Bank Humboldt.. Humboldt National... Belleville The National Bank of Belleville. Hutchlnson. Commercial National. Do Peoples National Bank Do First National Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

AUGUST 1,191ft. FEDERAL RESEBVE BULLETIN. 205 List of member banks which have joined the collection system List of member banks which have joined the collection system of the Federal reserve banks—Continued. of the Federal reserve bante—Continued. DISTRICT No. 10—Continued. DISTRICT No. 10—Continued. City or town. Name of bank. n T u r m an b s e i r t . City or town. Name of bank. n T u ra m n b s e it r. KANSAS—continued. KANSAS—continued. Independence Citizens National St. Marys.. First National Do Commercial National. Salina Farmers National Do First National Do National Bank of America.. Iola Northrup National Scott City. First National Jewell City First National Sedan .do. Junction City Central National Senieeccia. Ao Do First National Do National Bank of.. Kansas City Commercial National. Smith Center. First National Do Peoples National Solomon Solomon National.. Kensington First National Spearville....*. First National Kingman do. Stafford Farmers National.. Kingsley The National Bank of Kingsley. Sterling First National Kiowa First National Stockton National State LaHarpe First National Bank Do Stockton National. Larned Moffett Bros. National Bank., Syracuse First National Lawgreonce , L M a e w rc r h en an ce ts N N a a t t i i o o n n a a l l B B a a n n k k T To b p ay ek er a Cent d r o a . l National Do Watkins National Bank Do Fanners National... Leavenworth First National Bank Do Merchants National. Do Leavenworth National Bank.. Toronto First National Do Manufacturers National Bank, Troy do. Lebanon First National Bank Victoria German National. LeRoy do, Wamego First National.... Liberal .do. Washington... ..do. Lincoln Farmers National Bank. Do Washington National Lfndsborg. First National Bank Waverly First National Logan do. Wellington.... National Bank of Commerce. Longton Home National Bank. Do Wellington National Lucas First National Bank., Wetmore First National Luray do White City... .do. Lyndon .do. Wichita Fourth National Lyons Lyons National Bank. Do Kansas National Madison First National Bank.. Do National Bank of Commerce. Manhattan...... do. Do Union Stock Yards National. Man D k o ato U M n a i n o k n a N to a N ti a o t n i a o l n B al a n B k ank. Wingfieold C F o ir w st l e N y a C ti o o u n n a t l y National..... Marlon ... Marion National Bank... Do Winfield National Marysville...... First National Bank Mayetta do MISSOURI. Meade ..do. Adrian First National.., Medicine Lodge. .do. Albany —do Minneapolis Citizens National Bank Burlington Junction. .do., Do Minneapolis National Bank. Cameron .do.. Moline First National Bank Cartersville .do.. Do Moline National Bank Carthage Carthage National., Mount Hope.... First National Bank Do Central National... Natoma dO '; Do First National Neodesha .do. Excelsior Springs .do... Do Neodesha National Bank.... Fairview do Ness City Citizens National Bank Golden City Citizens National.., Do The National Bank of Ness City Do. First National Newton First National Bank Grant City .do.., Do Midland National Bank Harrison ville Citizens National.., Norcatur.. First National Bank Independence First National Norton .. .do. do.. Nortonville..... .do. Joplin Cunningham National Oakley .do. Do First National Oberlin... Farmers National Bank... Do Joplin National Olat D he o O Fi b r e st r l N in a N tio at n i a o l n B al a n B k ank.... Kangsaos City.. C D o ro m v m er o s n N w a e t a io lt n h a N l ational Osborne Exchange National Bank. Do First National Do...: Farmers National Bank... Do Gate City National Do.... First National Do Inter-State National Ottawa ..... do. Do National Reserve Do Peoples National Do New England National. Overbrook First National Do Park National Paola Miami County National. Do Security National _ Do Peoples National . Do Southwest National Bank of Parsons First National Commerce. Peabody do..... Do Stockyards National Phillipsburg ..do. Do Traders National- Pittsburg .do. King City,. Citizens National. Do National Bank of Pittsburg.. _ Do First National Do Pittsburg National Bank of Lamar .do.., Commerce. Lathrop...- .do., Plainvffle.... First National Liberty^. ..do.. Pleasanton... do Marys ville ..do.. Prairie View. Neosho ..do.. Platte National Bank of., Nevada • do Sabetha...... do Do Thornton National.. St. John First National.... North Kansas City.. National Bank of.... Do St. John National. Plattsburg First National Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

206 FEDERAL RESERVE BULLETIN. AUGUST 1,1915, List of member banks which have joined the collection system List of member banks which have joined the collection system of the Federal reserve banks—Continued. of the Federal reserve banks—Continued. DISTRICT No. lO—Continued. DISTRICT No. 10—Continued. City or town. Name of bank. n T u r m an b s e i r t . City or town. Name of bank. n T u r m an b s e i r t . MISS OUBI—continued. NEBRASKA—continued. Pleasant Hill ,.. Farmers National Fullerton .- First National St.Joseph Burnes National Do Fullerton National go First National G enoa First National Do German-American National— Bo Genoa National. Do Tootle-Lemon National Gering First National . Sarcoxle First National Do ,. Germs National . Savannah do.... Gordon First National do .do Tarkio .... do •. Do Grand Island National .... Webb City National Bank of Grcoley First National •.' do NEBRASKA. Gresham .do. Hampton .do Adams First National .... d o. Ainsworth National Bank of do Albion Albion National Do Hartington National Do First National Hastings Exchange National Allen do . Do „ First National Alliance Alliance National Do .. German National Do First National Havelock..,.. .. First National Amherst do Hayes Center. .....do Ansley .... do Hav SDrintrs do Arlington do Heminpford .... .do. Ashland National Bank of. Holdredge. Atkinson - First National Hooper .do ' Auburn Carson National Humboldt National Bank of Do First National Humphrey First National.. Aurora Aurora National Imperial „ ,i.:. do Do Fidelity National Johnson ..... do Do First National Do ... German National BBaanycarrodft ....d d o o Kea D rn o e y : C C i e t n y t r N al a N tio a n ti a o l n . al Bazile Mills ...do ...... — Laurel First National Beatrice . Beatrice National Do.,.. _ Laurel National .-. Do " First National Leigh First National -,-,•...... Beemer ....do Lexington ..... Dawson County National Belden ....do Do First National ........ Benedict ....do Litchfield .... First National. Bertrand ....do Lincoln Central National............. Blair ....do Do City National...- -. Blue Hill ....do Do First National...... _• Bradshaw ....do Do National Bank of Commerce ; Bridgeport ....do Loomis First National Bursrell ....do LoupCity. ...i.do... Broken Bow Custer National Lynch •..,;. :... .do... Brunswick First National Madison Farmdoers National Butte do... Do First National Callaway do Do Madison National do •- Marquette . ... First National ... Carroll do...... McCook Citizens National Central City Central City National Do First National Chadron First National Do McCook National Chappell .... do Minden First National Clarke .... do Do Minden Exchange National Coleridge Coleridge National Mitchell First National Do First National...., Morrill do. Columbus Commercial National Naper ....do......: Do First National Nebraska City Merchants National Do German National ; Do Nebraska City National f C C C ra r r r a e e w i t i g e g to h f t f o l n , C C Fi r i r t e y s ig t N h N t a o a t n t i i o o N n n a a a l t l ional N N e e l w i D g m h o a n Grove ,. N C F O i i e t t r o l i s i z e g t e h C N n s o N a u N t a i n o t a t i n t y o i a n o N l a n l a a t l ional Do First National NorfDolok Norfolk National. Crofton First National North Bend First National David City Central Nebraska National North Platte ..do D D El o e g d c i D a D g n t e o o u r : , . . C Fi i r ty s d d d t N o o o N a a t t i , i o o n n a a l l : O O a m k a D D D la h o o o n a . d . ... ..., C C F F F i a i o i r r t r r y s s m n t t N e E N N r a x s a a t c t t i & i i o h o o n a M n n n a a a l g e l l e rc N ha a n ti t o s n N al ational. Elwood do Do Merchants National Emerson do Do Nebraska National Fairbury Fanners & Merchants National. Do Omaha National Do First National • Do United States National •Polio plfTT- O'Neill First National Fremont Commercial National Do "" .. O'Neill National D D o o F F a ir r s m t e N rs a t & io n M a e l rchants National. O Os rd ceola Fi . r . s d t o National Frie D nd o F F r ir e s m t o N n a t t i N on a a ti l onal O Pe s n h d k e o r s h „ . . . . . . . .d d o o ... - Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

AUGUST lf 1915. FEDERAL RESERVE BULLETIN. 207 List of member banks which have joined the collection system List of member banks which have joined the collection system of the Federal reserve banks—Continued. of the Federal reserve banks—Continued. DISTRICT No. 10—Continued. DISTRICT No. 10—Continued. City or town. Name of bank. n T u r m an b s e i r t . City or town. Name of bank. n T u r m an b s e i r t . NEBRASKA—continued. OKLAHOMA—continued. Pilger., Farmers National.. Altus City National.. First National..... Do First National. Plainview.. :.... ....do Alva ....do. Plattsraouth ....do Anadarko.... do Randolph. ....do Do National Bank of., Do. Security National Apache , First National Rushville Stockmen's National Arcadia , .do. St. Edward First National Arapaho ...do Do ;. Smith National Ardmore Ardmore National Schuyler First National. Do First National Do Schuyler National Do , State National Scottsbluff. First National Bartlesville., Bartlesville National. Do .....;.. Scottsbluff National.. Do First National Scribner --•... First National Do Union National Seward . * do. Beggs Farmers National Do Jones National.... 1.. Do First National Shelby „ First National.. Berwyn do Sidney do Bixby. .do. South Omaha Live Stock National. Blackwell... .do. Do Packers National Blair .do. Do Stockyards National. Blanchard... .do. S p encer.............. — First National Blue Jacket. .do. Stanton....".............. do. Bovnton .do. Do Stanton National. Braggs. .do. Stromsburg First National.... Bram&n... .do. Stuart -.-.. •do Bristow Bristow National. Syracuse.. ..do. Do First National.... Tecumseh Citizens National.... Broken Arrow. Citizens National. Do..... Tecumseh National. Do First National.... Tekamah First National Buffalo .do. Tilden .do. Calvin. ....do Do... Tilden National., . Do Calvin National... Trenton. First National... Carmen Carmen National. University Place. .do. Cashion . First National Utica .do. Centralia .do. Valentine..........'.'...'.: .do. Chandler ....do -- Wahoo .do. Do Union National Do Saunders County National. Checotah Commercial National Wakefield Farmers National . Do First National Do First National Do Peoples National Walthill do. Chelsea First National Do Walthill National..... Cherokee Alfalfa County National Wausa Commercial National.. Do Farmers National Do First National Claremore... First National Wayne. Citizens National Do National Bank of Do.. First National. Cleveland... Cleveland National. Weeping Water City National......... Do First National Do . First National. Chickasha... Chickasha National West Point .do. Do Citizens National Do West Point National. Do First National Wllber National Bank of Do Oklahoma National Wilcox First National Clinton First National Winnebago do ".. Do Oklahoma State National Wisner Citizens National . Collinsville.. Collinsville National Do First National Do First National Wood River Comanche... .do. Wymore. .do. Cordell. Cordell National Wynet .-do. Do Fanners National York City National Do State National Do ... First National. Cow D et o a N Fi a r t s i t o N na a l t i B on a a n l k of Commerce. NEW MEXICO. Commerce... First National Cushing Farmers National Cimarron.... First National.:........... Do First National Clayton do CusterCity.. ..do.. Farmington., do.. -...., Do Peoples State National.. Do San Juan County National...., Davis First National Las Vegas.... First National Dewey...... do Do San Miguel National , Do Security National Raton First National Drumright.. First National Do National Bank of New Mexico. Duncan City National Santa Fe First National; Do Duncan National Do First National Edmond Citizens National Do First National Ada... First National El Dorado.. .do. Do...... M. & P. National............. Elk City..... do ......... Adding ton.. First National El Reno Citkens National Afton*. do. Do First National Alex........ -...do .... Enid Enid National Allen ....do..-:. Do First National. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

208 FEDEBAL BESERVE BULLETIN. AUGUST 1,1915. List of member banks which have joined the collection system List of member banks which have joined the collection system of the Federal reserve banks—Continued. of the Federal reserve banks—Continued. DISTRICT No. 10—Continued. DISTRICT No. 10—Continued. City or town. Name of bank. n T u r m an b s e i r t . City or town. Name of bank. n T u r m an b s e i r t . OKLAHOMA—continued. OKLAHOMA—continued. Eufaula National Mountain View FirstNational Do FirstNational Muldrow do Do State National Muskogee American National Fairfax Fairfax National Do. Commercial National . Do First National Do Exchange National Fhirland do Do First National Fatrview Farmers and Merchants Do Muskogee National Foraker First National Newkirk Eastman National Fort Gibson Citizens National Do FirstNational Do Farmers National New Wilson .....do Francis Francis National Noble .....do Frederick FirstNational Norman. Farmers National Do National Bank of Commerce.. Do. First National Geary FirstNational Commercial National Gotebo . do Do First National Grandfield ... .... do Do Nowata National Grove First National Okemah.............. First National. Guthrie do Do Okemah National Guymon City National Okmulgee .... Citizens National, Ham D m o on F Fa ir r s m tN er a s t i N o a n t a i l o nal :. Do: A Fi m rs e t r i N ca a n ti o N n a a t l ional Harrah FirstNational Oklahoma City Farmers National Hartshorne do Do. Oklahoma Stockyards Na- Haskell . ...do Do............... tional. Do Haskell National Do Security National.............. Hastings National Bank of Do .- State National. .-...• Heavener FirstNational Western National Do.... State National Okta D h O a .......:.-. .- First National Henessey Farmers and Merchants Olustee....... do Do First National Owasso do do Do Miners National Do National Bank of Commerce... Hobart City National Do Pauls Valley National Do Farmers and Merchants Nationa Pawhuska American National Do FirstNational Do..... Citizens National... Holdenvillo American National Do First National Do Farmers National Pawnee Arkansas Valley National Do FirstNational Do ....... FirstNational Hollis City National Do Pawnee National. H H H o o u o m lb D D D k i e e o o o n r r y t S N N F F t i i a a a r r t t s s t i i e d t t o o N o n n N N a a a a a l l t t i t i B B o i o o n a a n n a n n a a l k k l l o o f f C C o o m m m m e e r r c c e e .. . P P P P o o e o r r n n r t d D c y e a r C o C . r i . e t . e y . k . „ . . • • . _ . • ... ... F G F F F a a i i e r r r r r s s m m m d t t N o e e N a r r n a a s s i t t a i N N i o o N a a n n t t a a a i i o l l t o i n o n a n a l a l. l . ; Hydro Farmers National Do National Bank of Commerce... Do FirstNational Poteau First National KawCIty Farmers National Do National Bank of g K K K e i o i o n o n w g D D t D D a a f a w i o o o o s a her N P F K K F P F e e i i i a o e r r r o o t o n s s s i p p t t t t a o a l l N w N N e n e s s N a a a a a l t N N t t a i N i i B o t o o a a i a n n o t n t a i i t a a n n a o o i l o l l k a n n n l a a o a l l f l P P Q R P u r r a u a y r l i g c s o n D t e u r t o l o o e C l n n reek..., C F U F F P i i r i h n r r r a i i s s s c g o t t t k u n N N N a e s N a a a N h t t t a a i i i a t o o o i t N n n o n io a a n a a n l l l a ti a l o l nal Lahoma , FirstNational Ringling ...do Lawton City National Roff............ Farmers and Mechanics Na- Lena D p o ah L Fi e r n s a t p N a a h t i N on at a i l onal Do Fi t r i s o t n N al a . tional 1 ! Lindsav First National ....do Lone Wolfe do Rush Springs ....do ; M Lu a t n h D g e u o r m ..M .a.nd d go o um National Salli D sa o w C M i e ti r z d c e o h n a s n N ts a N ti a o t n i a o l nal ' ' Marietta FirstNational Sapulpa American National Do Marietta National Do First National Marlow National Bank of Do State National ....do Maud First National Do Beckham County National Maysville Farmers National Soiling First National Do First National ....do McAUester American National ., Sentinel .. .... ....do Do City National Shattuck Shattuck National Do First National Shawnee National Bank of Commerce... McLoud .do Do Shawnee National Medford... .do Do State National Kiami .do Skiatock First National Do Ottawa County National Do Oklahoma National Minco FirstNational Snyder First National Morris ....do Spiro Mounds Stillwater 1 do Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

AUGUST 1,1915. FEDERAL RESERVE BULLETIN. 209 List of member banks which have joined the collection system List of member banks which have joined the collection system of the Federal reserve banks—Continued. of the Federal reserve banks—Continued. DISTRICT No. 10—Continued. DISTRICT No. 10—Continued. City or town. Name of bank. n T u r m an b s e it r. City or town. Name of bank. n T u r m an b s e it r. OKLAHOMA—continued. WYOMING—continued. Stillwater.,... Stillwater National. Laramie City. First National.. Stigler American National. Meeteetse do. DO First National Newcastle do. Stilwell ....do Powell. ,do. Stonewall ....do Do... Powell National Stratford ....do Rawlins.., First National Stroud do Do. Rawlins National Do Stroud National., Do Stock Growers National.. Stuart First National... Kock Springs. First National Sulphur Park National... Do Rock Springs National... Tahlequah.... Central National. Sheridan First National Do First National... Do Sheridan National Talihina ....do Shoshoni First National Taloga do Thermopolis.. do Tecumseh Farmers National. Torrington do Do First National Worland. do Do Tecumseh National Temple : Temple National T To h n o k m a a w s a T Fi o r n s k t a N w a a ti o N n a a t l ional DISTRICT No. II. Texhoma First National Tulsa American National Do Central National Tyro D D D D n o o o o e ... N E L F F i i x i a r r b c t s s e i h t t o r a N N n ty n a a a g l N t t e i i B o o a N n n a ti n a a a o l t l k n i o a o n l f . a ! C l ommerce. L Sh a r k e e D D v o C o e . p h o a r r t les.. C C F F i i a o r r l m s s c t t a m s N N l e e a a r u c t t i i i o o a N n n l a a a N l l t a io ti n o a n l a . l .. . Verden do.. Do National Bank of.. OKLAHOMA. W W V V W W i i a a a a a n g l s n n i D D D t t o h e e a o n o o i t r n t s e e g r ton.. : . . F V F W S F F t i i i i i a r r r r a n s s s s t l . i e d t t t t t d t e a o o N N N N N r . . s . . N a . a a a a t N t t t a t i i i i o i t o o a o o i n n t o n n n i a a n a o l a a l l a n l . l . l . . a . . . . . . . l . . . . . . . . A A A C C D B B a o o y o n c u d l s h c l t r b e l w d D h a i e e s l o i n e l r w o r t e s t l o t l o rth . A S F D F F F . , . . e i i i i n . . u r r r r c . . t s s s r s d d u l t t a t t e o o r N N n N r N it s t y a a a a N N t t t N i i t i a o o o i a a t o n n n t i t i o a a a n i o o l l l n a n n a l l a a . l . l . . . . . . . . . . W W W W a a a a t y u u D o n r k n i o o o k g k a m a a is.... W W F F i i r r a a s s u u d t t k r o N N i o . k . m a a a t t i i i N s o o n n a N t a a i a l l o t n io a n l al... H I K T K d I u e i a s n n g b h g e o e o f s l m i t c o i n ngo T . . . . . . . . i . . . . s . . . . h d d d d o o o o o mingo National.. Weatherford.. .do.. Do German National. Webber Falls. First National TEXAS. Weleetka ....do Alpine First National Wellston ....do Arlington Citizens National WestvUle ....do Athens First National Wetumka American National Canton ....do Do First National Clyde ....do. Wewoka Farmers National Coleman Coleman National. Wilburton.... Latimer County National. Commerce First National Woodward.... First National Corpus Christl Corpus Christl National Wynnewood.. do.. Dallas American Exchange National, Do Southern National. Do City National -. Yale First National Do First State Do Farmers National.. Do Merchants National Yukon First National Do National Bank of Commerce.. Do Yukon National.... Do Security National Eagle Lake First National Ennls Citizens National Do Ennis National Buffalo First National Floresville City National Casper National Fort Worth American National. Stockmans National Do Farmers & Mechanics National. Do Wyoming National Do First National Cheyenne Citizens National Do Fort Worth National Do First National Do..... Stockyards National Do Stock Growers National.. Do Western National Codv First National Gainesville First National... Dou D gl o as D Sh o o u s g h l o a n s e N N at a i t o i n o a n l al Galv D e o s . ton. L Fi in rs d t s a N y a t N io at n io al n . a .. l Do First National . Garland Citizens National. K G L E L a v a e re n r m a e a d D n n m m e s o r t R e l o e r i n e C v r e it r y A E Fi v l r b a s . . a d d d n t n o o o s N y . . to a C n ti o o N u n a n a t l t i y o n N a a l lonalt.. G G H G G r o l r e e a a m n n n n D z p g b a R o e s l u e o t r r e s s y a e d C F F F F a i i a i r r t r r y s s m m d t t N o e e N N r r a a a s s t t t i N N i i o o o n a a n n a t t a a i i l o o l l n n a a l l - Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

210 FEDERAL RESERVE BULLETIN, AUGUST 1,1915. List of member banks which have joined the collection system List of member banks which have joined the collection system of the Federal reserve banks—Continued. of the Federal reserve banks—Continued. DISTRICT No. 11—Continued. DISTRICT No. 12—Continued. Transit Transit City or town. Name of bank. number. City or town. Name of bank. number. TEXAS—continued. CALIFORNIA—continued. Hillsboro Citizens National Los Angeles (Hollywood Hollywood National. Houston First National Station). Do... Houston National Exchange... Inglewood First National Do Lumbermans National Long Beach , City National , Do National Bank of Commerce... Mountain View First National Jacksonville First National Oakland.. Central National.. KarnesCity Karnes County National Ontario Ontario National.. Kemp First National Orange National Bank of.. Marshall Marshall National Redlands First National McKinney - ...„, Collin County National Richmond do , Do First National Rio Vista K .do. Memphis Hall County National Sacramento National Bank of D. O. Mills.., Mexia. First National San FTancisco Bank of California N. A Moore! Moore National Do Seaboard National Mount Calm First National Do Wells Fargo Nevada National.. Mount Pleasant do San Luis Obispo Union National: Ochiltree .do. Santa Barbara Santa Barbara County National Omaha do South Pasadena FirstNational Paris City National.. Torrance .do., „ Do First National, Tulare do Pecos do. Vacaville do San Antonio National Bank of Commerce... Visalia do Do Groos National Do National Bank of. San Marcos First National YubaCity FirstNational SanSaba do. Sealy Sealy National IDAHO. Sherman •.,. Merchants & Planters National. Sonora , First National Salmon Citizens National Sulphur Springs Twin Falls...: , FirstNational Taylor Taylor National , Troup First National , W W W W i i e h l c a i l D h t s t n h i o t P e e a . r y o . f . F i o n r a t d l ls.... , , V C C Fi i i a t t r n i i s z z d t e e Z o N n n a s s a n t N N d io t a a n t t C i i a o o o l n n u a a n l l ty National... , , , A C C H Fo o o o rl r r n o i e v d n d s a o g t l R n l t i o G s i n v r e o r ve... A C F F Fo i i o r r r l r n s s i e d n t t s N N o g t n t a a o G t t N n i i r o o o a N v n n ti e a a a o t l l n N io a a n l t a i l onal. Junction City. do. La Grande United States National- DISTRICT No. 12. Pendleton. American National Do First National St. Johns Peninsula National Sheridan FirstNational The Dalles.... do Tempe.. Tempe National. CALIFORNIA. Murray. FirstNational. Antioch First National. WASHINGTON. Artesia ,do. Claremont Claremont National Port Angeles.. Citizens National Coachella First National Reardon Reardon National Dinuba United States National- Rosalia Whitman County National.. Glendora First National Snohomish.... FirstNational Healdsburg Healdsburg National.... Tacoma National Bank of Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

AOGUST 1,1015. FEDERAL BESERVE BULLETIN. 211 INFORMAL RULINGS OF THE BOARD. Below are reproduced letters sent out from held exempt from the special tax provided for time to time over the signatures of the officers by section 3 of the act of October 22, 1014. of the Federal Reserve Board, which contain Duplicates of Capital Stock Certificates. information believed to be of general interest For tho convenience of the Board will you to Federal reserve banks and member banks of kindly have certificates of increase of capital the system: stock, Form 58, and certificates of decrease of capital stock, Form 59, made in duplicate, Annual Election of Directors. mailing one copy to the Comptroller of tho By direction-of the Federal Reservo Board, Currency and one to tho Federal Reservo I transmit outline of a plan relating to the Board. annual election of directors of Federal reserve banks, and the procedure to be followed therein, Committee Action on Trustee Applications. for such comment or suggestion as vou may For your information there is inclosed copy see fit to furnish. The proposed plan is as of a letter sent to Federal Reserve Agent follows: of the Federal Reservo Bank of . (1) The annual election will be fixed for the (Indosure.J third Tuesday in November, which in the case Will you accept recommendation of our of this year will be the 16th of November, 1915. executive committee on member banks' appli- (2) The Federal Reserve Board will issue cations to act as trustee or must they be instructions for the grouping of banks in each passed upon by full board. district in groups of one, two, and three, and designate what groups are to elect directors. Reply: Except in* the case of death or resignation, Recommendation of executive committee there will be only one class A and one class B considered sufficient. director to be elected in each district each year, to hold office for three years, or in the case of Time and Savings Deposits. filling- a vacancy, for the unexpired term of his The Board's attitude in the past has beon predecessor. that, where banks receive savings deposits (3) The returns from the elections of class subject to enforcement of the 60-3ay notice, and where such right of enforcement was defi- A and class B directors will be in and announced nitely made known to the depositors in the December 1, or as soon thereafter as possible, way indicated, the deposits in question are and at the same time the Federal Reserve subject to 5 per cent reservo. TJbat appears Board will announce the name of the class C to be the case with the deposits described by director named by it to fill the vacancy. you. (4) The Federal Reserve Board will notify Of course, if "the depositor is led to believe the Federal reserve banks to have a meeting by advertisement or printed rule" that he can for the organization of its board of directors in fact get his money without notice, tho deand the election of officers at the first conveniposit does not fall within the intent of tho ent date within the first 15 days of January, regulation. Nevertheless, it is true that, 1916. under the Board's ruling, banks are allo%ved to pay money to depositors without exacting Application of Internal-Revenue Tax. the enforcement of tho notice. In other Under a ruling by the Solicitor of Internal words, the notice is merely waived as a matter Revenue, dated February 15, 1915, all docuof courtesy; and the definite understanding is ments, instruments, and things mentioned in that it may be applied at any time. Otherschedule A of the act approved October 22, wise, the deposits are in reality demand de- 1914, when issued by the Federal reserve posits. banks, are subject to the tax imposed by that act. A copy of the act is inclosed, and your attention is directed to schedule A, appearing Composition of Executive Committee. The Board recently received the following onpages 16 et seq. letter: This opinion has no connection with the opinion rendered November 28, 1914, by the "A short time before the opening of the Solicitor of Internal Revenue, under which Federal Reserve Bank of you sent us a the capital stock of Federal reserve banks is form of by-laws, the adoption of which at the Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

212 FEDEEAL EESEEVE BULLETIN. AUGUST I, 1915. time we thought desirable. In the form sent suggest that advice be made to Goy. . us the following paragraph appeared: that, in the opinion of the Board, while it may "'There shall be an executive committee be desirable for the banks not to close their consisting of the governor, the Federal reserve books until December 31, 1915, no objection agent, and one or more directors chosen from should be raised should the Federal reserve classes AorB' * * * banks desire to close their books on June 30, "From its reading it would be inferred that with a view to conforming to banking custom a class C director was not at any time ex- in the district." pected to serve as a third member of the executive committee. I understand, how- Eligibility of Small State Banks. ever, that in several of the banks class C In view of the provision of section 9 of the directors have the same standing and privi- Federal reserve act which requires that "'No. leges as to serving on the executive committee applying bank shall be admitted to memberas do classes A and B. ship in a Federal reserve bank unless it pos- " Now since all our directors of classes A and sesses a paid-up unimpaired capital sufficient B have served as members of that committee, to entitle it to become a national banking assowe request that you inform us if there is any ciation in the place where it is situated, under reason why a class C director should not assume the provisions of the national banking act," the responsibilities connected with service it appears that the Board will be compelled to on our executive committee as a third member. refuse membership to the -——— - — bank, Reply was sent as follows: unless it should increase its capital stock to 4 * Your letter of July 10, respecting the com-$200,000, which is the minimum for a national position of the executive committee of your bank in a city the size of . No way board, has been received and duly considered suggests itself oy which the Board cojiild admit by the Federal Reserve Board. this bank with its present capitalization "I am instructed to say that the board sees no reason why your board should not, if Eligibility of Building and Loan Associations. it chooses, amend its by-laws in such a way The Board,fully appreciates the vaiue of the as to permit a class C director to serve as a building and loan association, and recognizes third member of the executive committee," it as having a distinct and important place in the financial field. At the present time, how- Date of Closing Books. ever, there seems to be considerable doubt With reference to your letter of July 13 whether building and loan associations would regarding the closing of books as of June 30, be held to be banks within the meaning of the 1915, you are advised that the Board's chief Federal reserve act. Assuming that they are examiner has submitted the following memo- not, it would appear that such associations randum, which appears to cover the question would not be eligible for membership in the raised: Federal reserve bank of any district where the "A number of institutions have closed out required capital has been provided through their current earnings and expense accounts subscriptions made by banks. No doubt you and established a net balance under the head- are aware that mortgages held by building and ing 'Profit and lo^s account/ This was done loan associations when liquidated by monthly in line with the general custom of banking payments extending over a period of years, institutions to close their accounts on June 30 would not be eligible for rediscount at a Federal and December 31 of each year, reserve bank. "It would appear that Mr. Elliott is of the The changes in the conditions of membership opinion that it would be better to defer the which you suggest would require a modificaclosing out of accounts until the end of the tion of the Federal reserve act, which, of course, calendar year. is not feasible just now, Congress not being in "Personally, I believe that the question is session, even if all other concutions were favorone of policy, and it would be better to have able. uniform practice among the Federal reserve banks. At the same time, in case the banks prefer the first-mentioned method, there is Mule and Cattle Paper. no good reason why they should not be per- Notes made by mule and cattle dealers should mitted to do so, so long as monthly reports be classed as mercantile rather than agricul are made to the Board as to expenses and tural paper. We take it that a note made by a earnings on the forms prescribed. Would dealer in agricultural implements would not be Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

AUGUST 1,1915. FEDERAL RESERVE BULLETIN. 213 regarded as agricultural paper, although the provided, * * * the Federal reserve bank implements themselves are used for agricul- shall satisfy itself as to the eligibility of the tural purposes, just as mules are. In fact, paper offered for rediscount, and member banks agricultural implements are used less fre- will be expected to use such statement forms, quently off the farm than are mules, which ani- identifying stamps, etc., as may be prescribed mals are often used in cities, by contractors, by the respective Federal reserve banks." and for war purposes. We can see no reason, From this it would appear that the option however, why a note made by a farmer in pay- in respect to waiving the requirement that a ment, or part payment, for a mule to be used in borrower's financial statement shall be on file farm work should not be classed as agricul- rests with the member bank. tural paper, but dealers in mules and cattle are merely jobbers in merchandise, and as they generally have a mercantile rating their paper Rediscounting for Nonmember Banks. is classed as mercantile paper in the ordinary Your letter of July 21, asking as to the redisacceptation of the term. There seems to be no count with a Federal reserve bank of notes held reason why they should be given the benefit of by a bank not a member of the system, is six months' maturities, particularly when such received. action would reduce your lines of long-time The question, which you raise, has already paper open to those engaged in purely agriculhad the consideration of the Board in connectural pursuits. tion with the request for an interpretation of that part of section 19 of the Federal reserve Interpretation of Regulation B as to Borrower's State- act which reads as follows: ments. No member bank shall act as the medium In three cases, specifically enumerated, the or agent of a nonmember bank in applying for regulation permits waiving as to statements of or receiving discounts from a Federal reserve the borrower's financial condition, but it is bank under the provisions of this act except by expressly stipulated, however, that the applypermission of the Federal Reserve Board. ing bank "shall certify to these conditions on the application blank m a manner to be desig- Assuming that the paper offered by a memnated by the respective Federal reserve banks." ber bank for rediscount is eligible under the It seems clear that the Federal reserve banks regulations prescribed by the Board, it would have full option as to discounting or declining be necessary in each case for the officers of the to discount any paper offered them, but noth- Federal reserve bank to determine whether ing in the regulation requires a member bank or not the proceeds of such discount are to be to keep on file a borrower's financial statement used for the purpose of making a loan to a nonrelating to paper offered for discount. In member bank. If the money thus borrowed certain cases it is provided that the Federal is to be re-lent to a nonmember bank, rediscount reserve bank can not accept such paper for should not be accepted without the permission discount unless statements are on file with the of the Federal Reserve Board. If, on the other member bank, and in the three cases above hand, a member bank had in good faith acenumerated the option is given Federal reserve quired from a nonmember bank by rediscount banks of rediscounting paper even where a notes which are eligible under the regulations borrower's statement is not on file in the mem- of the Board for rediscount with the Federal ber bank. reserve bank, and such notes were held as a part Quoting again from Paragraph III of the of the assets of the member bank, there would regulation—* seem to be no objection to the Federal reserve "It is recommended that every member bank's accepting such rediscounts, provided the bank maintain a file which shall contain orig- officers are satisfied that the transaction is a inal signed statements of the financial condi- bona fide transaction and that the member bank tion of borrowers, or true copies thereof, etc." did not extend accommodation to the nonmem- "Member banks shall certify in their letters ber bank with a view of rediscounting notes of application for rediscount whether the so acquired with the Federal reserve bank. paper offered for rediscount is depositor's or This is one of the cases which must be left purchased paper, or paper rediscounted for very largely to the judgment and discretion other member banks, and whether statements of the Federal reserve hank officers; and a are on file. When it does not appear that such determination must be reached by them on the statements are on file, except as hereinafter facts in each case. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

214 FEDERAL RESERVE BULLETIN. AUGUST 1,1915, Trustee Powers. DISTRICT No. 8. Trustee, executor, administrator, and registrar of stocks Applications from the following banks for and bonds: . Farmers National Bank, Glasgow, Ky. permission to act under section 11 (k) of the Trustee, executor, and administrator: Federal reserve act have been approved since First National Bank, Versailles, Mo. the July issue of the Bulletin, as follows: DISTRICT NO, 10. Trustee, executor, administrator, and registrar of stocks DISTRICT NO, 1. and bonds: . Fremont County National Bank, Canon City, Colo. Trustee, executor, administrator, and registrar of stocks First National Bank, Colorado Springs, Colo. and bonds: Trustee, executor, and administrator: Yale National Bank, New Haven, Conn. First National Bank, Neosho, Mo. Northampton National Bank, Northampton, Mass. First National Bank, Lyons, Nebr. Trustee and registrar of stocks and bonds: DISTRICT NO, 11. Citizens National Bank, Newport, N. H. Wolfeboro National Bank, Wolfeboro, N. H. Trustee and executor: Citizens National Bank, Abilene, Tex. DISTRICT No. 2. Trustee, executor, and registrar of stocks and bonds: First National Bank, Port Arthur, Tex. Begistrar of stocks and bonds: Sealy National Bank, Sealy, Tex. American Exchange National Bank, New York City. Irving National Bank, New York City. DISTRICT NO. 12. Registrar of stocks and bonds: DISTRICT No. 3. Central National Bank, Oakland, Cal. Trustee, executor, and administrator: Registrar of stocks and bonds: First National Bank, Mount Vernon, AVash. Third National Bank, Scranton, Pa. Trustee, executor, administrator, and registrar of stocks Trustee, executor, administrator, and registrar of stocks and bonds. and bonds: Vancouver National Bank, Vancouver, Wash. Annville National Bank, Annville, Pa. First National Bank, Huntingdon, Pa. First National Bank, Johnstown, Pa. •First National Bank, Lansdale, Pa. Discount Rates. First National Bank, Newville, Pa. Southwark National Bank, Philadelphia, Pa. Discount rates of each Federal reserve bank in effect July 28, National Bank of Chester County, West Chester, Pa. 1915. Trustee, executor, and administrator: Jenkintown National Bank, Jenkintown, Pa. Maturi- Maturi- Maturi- DISTRICT NO. 4. Bank. D c o h f l a a a r t n e s a t g t o e e f . 1 M t 0 i l a e e a n d s s t d u s a o . r y f i s - 3 d o i t 0 n a v i e c y d e s l s r a u o y J s t O f o s - , o i t d n t i v o e a c e s l y r 6 u s o 3 0 s , f 0 - o i t d n t v i o e a c e s l y r 9 u s o 0 6 s , f - 0 l t A i u o v p r g v e a a r e - l p i s r c t e a o u 9 r n c l 0 d - k Trustee and registrar of stocks and bonds: ive. ive. ive. days. Ohio National Bank, Columbus, Ohio. Trustee: National Exchange Bank, Steubenville, Ohio. Boston July 3 3 1 ? 5 Citizens National Bank, Urbana, Ohio. C N P l h e e w i v la e Y l d a e o n l r d p k hia...- . J F . u . e d n b e o . . 2 . 6 5 .. 3 3 . I i % i4£! 5 5 5 Richmond June 25 t 5 DISTRICT NO. 5. Atlanta Apr, 30 i 5 Tr a u n s d te e b , o n e d x s e : cutor, administrator, and registrar of stocks C M S K t h a . i i n n c L n s a o e a g a s u o p i C s o i l t i y s J J J M a u u a n n n y . e e 2 2 1 1 3 5 8 8 3" l I t I 4 4 4 4 •? 5 5 5 5 American National Bank, Roanoke, Va. S D a a n ll a F s rancisco... J F u e n b e . 2 4 5 3" i 4 4 4 4| £ 6 5 DISTRICT NO. 7. Authorized rate of acceptances, 2 to 4 per cent. Trustee, executor, and administrator: On March 10 the Federal Reserve Board fixed the fol- Farmers National Bank, Wilkinson, Ind. lowing rates for rediscounts between Federal reserve Trustee, executor, administrator, and registrar of stocks banks: 3J per cent for maturities of 30 days or less; 4 per and bonds: cent for maturities of over 30 days to 90 days, inclusive. Franklin National Bank, Franklin, Ind. On July 22 the Federal Reserve Board approved a rate First National Bank, Fonda, Iowa. of 3£ per cent for rediscount of trade acceptances at the First National Bank, Rochester, Mich. Federal Reserve Bank of New York. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

ACIGUST 1, 1915. FEDERAL RESERVE BULLETIN. 215 CIRCULARS AND REGULATIONS. The circulars and regulations given below amount of such notes to be retired less a ratable proportion were issued by the Board since the July issue of the amount of money standing to its credit in the gold of the Bulletin: redemption fund with the Treasurer of the United States. In either case a proportionate amount of the collateral REGULATION O, SERIES OF 1915. deposited by the bank shall be returned to it by the Federal reserve agent. Forme BD 28-1, 2, 3, will bo used. WASHINGTON, July 6, 1915. 7. A Federal reserve bank may, through its Federal reserve agent, exchange notes that are unfit for circula- REGULATIONS TOR THE GUIDANCE OF FEDERAL RESERVE tion, or may exchange notes of one denomination for those AGENTS IN THE MATTER OF ISSUANCE AND REDEMPTION of another. Every such transaction shall bo reported to OF FEDERAL RESERVE NOTES. the Federal Reserve Board by the Federal reserve agent 1. Federal reserve agents in making requisitions for in daily report of transactions in Federal reserve notes. Federal reserve notes to meet applications of Federal 8. Federal reserve notes unfit for circulation accumureserve banks, shall use form 45. lated by any Federal reserve agent shall be assorted, 2. A Federal reserve bank in making application for an strapped, canceled, and bundled in the manner now proissue of Federal reserve notes shall accompany the appli- scribed by the Treasury Department for unfit United cation with a tender of the requisite collateral, UBing for States currency which is remitted by subtreasuriea to this purpose form BD 21-1. Washington, and the same standard of fitness shall be im- 3. The Federal reserve agent shall receipt for all collat- posed. These shall be shipped to the Comptroller of the eral accepted by him as fulfilling the requirements of Currency, Division of Federal Reserve Note Redemption, sections 13 and 16 of the Federal reserve act and the Washington, D. C. Special instructions accompanied by regulations and instructions of the Federal Reserve Board "dummies" exhibiting the methods to be employed will made pursuant thereto, using for this purpose the appro- be furnished upon request to each Federal reserve agent. priate form (either BD 21-2 or BD 22-2), and shall NOTE.—The Board expects later to issue instructions promptly notify the Federal Reserve Board of the col- under which notes which are soiled, but otherwise fit for ateral accepted, using for this, purpose the appropriate circulation, may be forwarded to Washington for launderform (either BD 21-3 or BD 22-3); and shall, furthermore, ing and renovating. report to the Federal Reserve Board each day all notea 9. Whenever Federal reserve noteB issued by one Fedissued to and withdrawn by said bank, using form FRA 5. eral reserve bank are received by another Federal reserve 4. Upon receipt of the said collateral and upon being bank, they shall, if fit for circulation, be immediately resatisfied that the bank has the required gold reserve to turned to the issuing bank for credit or redemption. Howprotect its notes, and has, furthermore, taken appropriate ever, if such notes are unfit for circulation, the issuing bank steps to transmit to the Treasurer of the United States shall be advised of the amount and the notes shall be dethe requisite gold redemption fund, at present fixed at livered to the local Federal reserve agent, who will forward 5 per cent of the net amount of notes issued to the bank, them to the Treasury Department in the manner provided lees the amount of gold and lawful money in the hands in paragraph 8 for the treatment of unfit; notes returned by of the Federal reserve agent, the latter will issue Federal the issuing bank. Upon receipt of such notice the bank of reserve notes to said bank within such limits as the Fed- issue may make a demand upon the local Federal reserve eral Reserve Board may have fixed, and immediately agent for credit or for the issue of new notes to replace the notify the Federal Reserve Board of said issue on form unfit notes forwarded to the department for destruction. supplied for this purpose. All transactions in these respects must be reported im- 5. If at any time the Federal reserve agent deems it mediately to the Federal Reserve Board. necessary to require changes in either the amount or the 10. If at any time the gold reserve required by law to be character of collateral deposited to secure notes, he shall, held by a Federal reserve bank against Federal reserve acting for the Federal Reserve Board, call upon the Fed- notes issued to it falls below 40 per cent (including therein eral reserve bank for additional or new collateral to be the gold redemption fund required to be maintained in the added to or substituted for that which is deemed unsatis- Treasury) the Federal reserve agent shall at once notify the factory; issuing receipt therefor on the appropriate form Federal Reserve Board, and thereupon until otherwise (either BD 21-2 or BD 22-2), and shall notify the Federal directed by the Federal Reserve Board, a graduated tax Reserve Board on the appropriate form (either BD 21-3 or upon such deficiency as provided in section 11 of the Fed- BD22-3). eral reserve act shall be established and shall be computed 6. A Federal reserve bank may reduce its liability on for the present as follows: account of outstanding Federal reserve notes by depositing When reserves fall below 40 per cent but are in excess with the Federal reserve agent its-own notes, or gold, gold of 32J per cent, the tax upon the deficiency shall be at the certificates, or lawful money of the United States to the rate of 1 per cent per annum. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

216 FEDERAL EESEBVE BULLETIN, AUGUST 1,1915. When reserves fall below 32J per cent but are in excess sion in the Treasury Department's circulation statement. of 30 per cent, the tax upon the entire deficiency below 40 A consolidation of each month's reports from all the per cent shall be at the rate of 2* per cent per annum. Federal reserve agents will be furnished by the Federal When reserves fall below 30 per cent but exceed 27$ per Reserve Board to the Secretary of the Treasury. cent, the tax upon the entire deficiency below 40 per cent 12. The Federal Reserve Board will maintain a conshall be at the rate of 4 per cent per annum; and so on, tinuous record of: increasing at the rate of 1J per cent with each reduction in (a) The aggregate amounts of orders for notes transreserve amounting to 2£ per cent or any fraction thereof. mitted by the Comptroller of the Currency for the engrav- This is otherwise expressed in the following table: ing and printing of Federal reserve notes. (b) Each delivery of Federal reserve notes to Federal Penalty tax on defi- reserve agents. Gold reserves against Federal reserve notes: ciency in reserves. (c) The stock of notes on hand in the Treasury of the 40 per cent (legal minimum, including redemption fund) Nopenalty, United States available for shipment. 37J up to 40per cent 1 percent. (d) The amounts of Federal reserve notes issued through 35 up to 37£ per cent 1 percent. Federal reserve agents to their respective Federal reserve 32J up to 35 per cent 1 percent. banks. 30 up to 32^ per cent 2J per cent. 27J up to 30 per cent 4 percent. (e) The amount of notes fit and unfit for circulation 25up to 27£per cent 5$ percent. which are in the possession of each Federal reserve agent. 22J up to 25 per cent 7 percent, (/) The amount of notes unfit for circulation which have 20 up to 22J per cent 8fc per cent. 17| up to 20 per cent 10 percent. been returned to the Comptroller of the Currency and 15 up to 17J per cent 11J per cent. destroyed, 12J up to 15 per cent 13 percent. CHARLES S. HAMUN, 10 up to 121 per cent 14$ per cent. Governor. 71 up to 10 per cent 16 percent. H. PARKER WILLIS, 5 up to 71 per cent 17J per cent. Secretary. 2} up to 5 per cent 19 percent. 0to21percent 2O4percent. 11. At the close of business on the last day of each month each Federal reserve agent shall furnish the Federal Reserve Board with a consolidated statement of— CIRCULAR NO. 16, SERIES OF 1915. (a) All transactions in Federal reserve notes during the WASHINGTON, July 15, 1915, month, showing for each denomination the number of notes on hand at the beginning of the month. BILLS OF EXCHANGE DRAWN AGAINST SALES OP GOODS (b) The number received from the Comptroller of the AND ACCEPTED BY PURCHASERS, HEREINAFTER RE- Currency during the month, the number returned by the FERRED TO AS "TRADE ACCEPTANCES." Federal reserve bank, and the number issued to the By Regulation B, Series of 1915, the Board has pre- Federal reserve bank. scribed the conditions upon which commercial paper (c) The number returned during the month to the Compmay be rediscounted with Federal reserve banks, and, troller of the Currency for cancellation and destruction, by Regulation J, Series of 1915, rules have been pro- (d) The number on hand at the close of the month. mulgated covering operations in bankers' acceptances. Agents are required to show in addition: The attached regulation is to deal with "trade accept- (e) The total amount of notes in circulation at the end ances" as a distinct class of commercial paper, for which of the month, the Board is ready to approve the establishment of a dis- (/) The total amount of each kind of money of the count rate somewhat lower than that applicable to other United States in hand for retirement of notes. commercial paper. (g) The amounts transmitted during the month to the These trade acceptances are more particularly defined Treasurer, upon direction of the Federal Reserve Board, in the appended Regulation P, Series of 1915, and in at the request of the Secretary of the Treasury, promulgating it the Board expresses the belief that it will (h) The amount of gold on deposit, with the Treasurer considerably enlarge the scope of service of Federal of the United States at the end of the month, for the rereserve banks and, incidentally, assist in developing a demption of outstanding notes. class of "double-name" paper, which has shown itself (i) The amount of gold reserve hold by the bank, other in so many countries a desirable form of investment and an than the gold redemption fund deposited with the Treasurer of the United States. important factor in modern commercial banking systems. The information in paragraphs t to % inclusive, also is CHARLES S. HAMLIN, required to be furnished by telegram immediately at the Governor, close of business on the last day of each month for inclu- H. PARKER WILLIS, Secretary. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

AUGUST lf 1915. FEDERAL RESEBVE BULLETIN. 217 REGULATION P, SERIES OP 1915. Conference of Chief Bank Examiners. WASHINGTON, July 15,1915. There was held on July 12-14 at the offico of BILLS OF EXCHANGE DRAWN AGAINST SALES OP GOODS AND the Comptroller of the Currency the first gen- ACCEPTED BY PURCHASERS, HEREINAFTER REFERRED TO eral conference of chief national bank exam- AS "TRADE ACCEPTANCES." iners, of whom there are 12—one for each of the 12 Federal reserve districts. I. The following chief examiners were present: Jas. D. Brennan, Boston. In this regulation the term "trade acceptance" is de- Chas. Starek, New York. fined as a bill of exchange of the character hereinafter E. I. Johnson, Philadelphia. described, drawn to order, having a definite maturity and payable in dollars in the United States, the obligation to Silas H. L. Cooper, Cleveland. pay which has been accepted by an acknowledgment, Thos. P. Howard, Richmond. written or stamped, and signed across the face of the C. H. Abbott, Atlanta. instrument by the company, firm, corporation, or person Sherrill Smith, Chicago. upon whom it is drawn; such agreement to be to the effect C. E. French, St. Louis. that the acceptor will pay at maturity, according to its tenor, such draft or bill without qualifying conditions. Peter M. Kerst, Minneapolis. J. D. Rising, Kansas City. J. C. Chidsey, Dallas. n. The only absentee was Chief Examiner CHARACTER OF PAPER ELIGIBLE. Gatch, of the San Francisco district. A trade acceptance to be eligible for rediscount, under The chief examiners were directed to cosection 13, with a Federal reserve bank at the rate to be operate as closely as possible with the Federal established for trade acceptances— reserve banks of their respective districts in (a) Must be indorsed by a member bank, accompanied by waiver of demand notice and protest. matters calculated to increase the safety and (b) Must have a maturity at the time of discount of not promote the welfare of the member banks. more than 90 days. The chief examiners were directed, upon their (c) Must be accepted by the purchaser of goods sold to return to their respective districts, to call a him by the drawer of the bill, and the bill must conference of the examiners of each district have been drawn against indebtedness expressly with a view to informing them individually of incurred by the acceptor in the purchase of such the matters discussed at the Washington congoods. ference. HI. METHOD OF CERTIFYING ELIGIBILITY. Purchase of Government Bonds* A trade acceptance must bear on its face or be accompanied by evidence in form satisfactory to the Federal The Federal Reserve Board has reached the reserve bank that it was drawn by the Beller of the goods conclusion that Government bonds, bought by on the purchaser of such goods. Such evidence may con- Federal reserve banks prior to December 31, sist of a certificate on or accompanying the acceptance, to 1915, shall not count as a part of the sum of the following effect: "The obligation of the acceptor of this $25,000,000, which the Federal Reserve Board bill arises out of the purchase of goods from the drawer." Such certificate may be accepted by the Federal reserve may, in its discretion, under the provisions of bank aa sufficient evidence; provided, however, that the Section 18 of the Federal reserve act, annually Federal reserve bank, in its discretion, may inquire into require Federal reserve banks to purchase from the exact nature of the transaction underlying the accept- the member banks whose applications for sale ance. of their bonds have been filed with the Treas- CHARLES S. HAMLIN, Governor. urer of the United States. H. PARKER WILLIS, Secretary, Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

218 FEDERAL BESEBVE BULLETIN. AUGUST 1,1915. LAW DEPARTMENT. Right of State Banks and Trust Companies to Sub- reserve bank of its district, or whether such scribe for Stock in a Federal Reserve Bank. Federal reserve bank may, at its option, permit Since the publication of the last issue of the the stock representing 6 per cent of such de- Bulletin, it has been learned that Louisiana crease in surplus of a member bank to remain passed a law hi 1914 authorizing State banks, outstanding. savings banks, and trust companies to subscribe The Federal reserve act provides hi section 2 to stock in a Federal reserve bank. A revised that— list of those States which have enacted laws Every national banking association * * * expressly authorizing any State bank to be- shall be required * *. * to subscribe to the come a member bank follows: capital stock of such Federal reserve bank in a sum equal to 6 per cent of the paid-up capital Idaho, Iowa, Kentucky, Louisiana, Maine, stock and surplus of such bank. Massachusetts, Michigan, Minnesota, Missis- Section 5, in providing for the admission of sippi, Missouri, Montana, Nebraska, New Jera bank after the organization of the system, sey, New York, North Dakota, Ohio, Oregon, contains a provision that such a bank— South Carolina, South Dakota, Texas, Utah, Virginia, Washington. Must subscribe for an amount of the capital stock of the Federal reserve bank equal to 6 In the following States, though there has per cent of the paid-up capital stock and surbeen no express enabling legislation, the State plus of said applicant bank. authorities have ruled that any State bank It is to be noted that in both of these sections may subscribe for stock in a Federal reserve an applying bank must subscribe for an amount bank: equal to 6 per cent of its capital stock and sur- Alabama, Arizona, Arkansas, California, plus. Delaware, Georgia, Illinois, Indiana, Kansas, Section 5 further provides that— Maryland, North Carolina, Tennessee, Ver- "When a member bank increases its capital mont, West Virginia, and Wisconsin. stock or surplus it shall thereupon subscribe for The State authorites have ruled in New an additional amount of capital stock," Mexico and Rhode Island that trust companies, It is thus clear that when a member bank as distinct from State banks, are eligible to increases either its capital stock or its surplus subscribe to stock in a Federal reserve bank. it must subscribe for additional stock. This The following opinions of counsel for the conclusion is corroborated by the requirement Federal Reserve Board have been authorized that the outstanding capital stock of a Federal for publication by the-Board'since'the last reserve bank " shall be increased from time to edition of the Bulletin: time as member banks increase their capital stock and surplus/' Surrender of Stock by a Member Bank Reducing Its Surplus. In dealing with the question of reduction in The Federal reserve act does not require that a member the capital stock of a Federal reserve bank, bank necessarily surrender a proportionate part of its stock however, the act contains no mandatory proin the Federal reserve bank of which it is a member when vision for decrease of such stock on account of it reduces its surplus. 'Such surrender is left to the dis. cretion of the Federal reserve bank, subject to the ap- reduction hi the surplus of a member bank. proval of the Federal Reserve Board. The specific language used in section 5 in reference to this subject is as follows: JUNE 17, 1915. SIR: The question has been raised whether a The capital stock of each Federal reserve bank shall be divided into shares of $100 each. member bank which reduces its surplus is re- The outstanding capital stock shall be increased quired by law to surrender a proportionate from time to time as member banks increase amount of the stock held by it in the Federal their capital stock and surplus or as additional Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

AUGUST l, 1915. FEDERAL RESERVE BULLETIN. 219 banks become members, and may be decreased ! Rediscount of Drafts Payable on Condition. as member banks reduce their capital stock or A draft made "payable on arrival of car" is nonnegotisurplus or cease to be members. able, not being payable at a doterminablo future time, This section further provides that— and is therefore ineligible for rediscount by a Federal reservo bank. When a member bank reduces its capital stock it shall surrender a proportionate amount FEBRUARY 23, 1915. of its holdings in the capital stock of said Fed- SIR: The question has been raised whether eral reserve bank. drafts "payable on arrival of car" are eligible A distinction is therefore made between the for rediscount by Federal reserve banks. reduction of the capital stock and the reduc- Section 13 of tho Federal reservo act protion of the surplus of a member,bank. vides that any Federal reserve bank may dis- An examination of the bill as it passed the count "notes, drafts, and bills of exchange House shows that stock of Federal reserve banks arising out of actual commercial transactions,1* was to be increased only on account of an in- and, though this language does not in express crease in the number of member banks, or on terms demand that the paper be negotiable, it account of an increase in the capital stock of must bo so construed because of tho whole member banks, and was to be reduced on ac- spirit and purpose of the act. count of decrease in the number of member The act evidently contemplates that title to banks or a decrease in the capital stock of such eligible paper must pass with it and that in banks. event of nonpayment a Federal reserve bank In the Senate this section was amended so as must be able to sue in its own name on such to require an increase of the capital stock of paper. To secure these rights the paper must Federal reserve banks whenever member banks be negotiable, otherwise the transfer would conincreased either their capital stock or surplus, stitute a mere assignment and the holder would but this amendment did not specifically require have to sue in the name of the payee. It must a Federal reserve bank to reduce its capital also be noted that if the paper is not negotiable stock whenever the surplus of a member bank a Federal reserve bank rediscounting it would is reduced. That part of the section above hold it subject to the equities existing between quoted which makes such decrease discretionary the original parties to the bill. The same limiwith the Federal reserve bank was added by tations would be imposed on the Federal reserve the Senate committee and was adopted in the agent holding such paper as security for Fedconference agreement. eral reserve notes. The natural construction of the act, therefore, is that paper must be nego- It seems reasonable to assume, therefore, that tiable in order to be eligible for rediscount. Congress contemplated that a reduction in the The question here presented is whether a surplus of a member bank might be merely draft "payable on arrival of car" is negotiable. temporary and accordingly vested a discretion A draft to be negotiable must be an uncondiin the Federal reserve bank to cancel a proportional order to pay to the bearer or order a defitionate amount of the capital stock held by a nite sum of money on demand or at a determember bank the surplus of which is reduced, minable future time. The drafts referred to or to permit such stock to remain outstanding. above do not seem to comply with these condi- I am, therefore, of the opinion that the Fedtions. Should the car fail to arrive, for any eral reserve banks may, with the approval of cause whatever, the draft would not be paythe Federal Reserve Board, legally exercise this able. The event or contingency upon which discretion. payment depends must be one which must nec- Respectfully, essarily happen in the natural course of the M. C. ELLIOTT, Counsel. laws of nature. (Weidler & Carpenter v. To Hon. CHARLES S. HAMLIN, Kauffman, 14 Ohio, 455.) Governor Federal Beserve Board. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

220 FEDERAL RESERVE BULLETIN. ADGDSX 1,1915. The negotiable instruments law, section 4, nonnegotiable, both at common law and under which is based on settled decisions, provides the Negotiable Instruments Law. that— Respectfully, An instrument is payable at a determinable M. C, ELLIOTT, Counsel. future time, within the meaning of this act, To Hon. C S, HAMLIN, which is expressed to be payable— Governor Federal Reserve Board. (3) On or at a fixed period after the occurrence of a specific event, which is certain to happen, though the time of happening be un- Payment of Dividends by Federal Reserve Banks. certain. Federal reserve banks should not at this time undertake In the case of Colehan v. Cooke (Willes, 393), to pay semiannual dividends or to carry any profits to a note payable ten days after the death of the surplus account before the end of the fiscal year. maker's father was held good on the ground JlTNE 25, 1915. that the father must die at some time and pay- SIR: The question has been raised whether a ment, therefore, was not dependent on the Federal reserve bank may declare a dividend happening of an event which might fail to as of June 30, at the rate of 6 per cent per occur. But in the case under consideration— annum, for the time elapsed between November that is, drafts "payable on arrival of car"— 16, 1914, and June 30, 1915. there is no certainty whatever that the car It appears from the provisions of section 7 will arrive, and such paper would probably be of the Federal reserve act that Congress inheld to be nonnegotiable on two grounds: tended that dividends should be paid annually First, that it is not an unconditional promise and not in semiannual instalments. It is conto pay; and second, that the time of payment ceivable that a bank might show a surplus as is not fixed and certain, because of the fact the result of the first six months' operations and that the event by which it is determinable a loss for the last six months. If, therefore, a need not necessarily ever occur. dividend should be declared at the end of six In all the cases examined on this point there months an impairment of capital might be seems to be only one exception to this general shown according to the books at the end of the rule, that the note or bill must be payable year which would not have resulted except for at all events. That case is an English one the payment of the dividend. decided some time ago. (Andrews v. Franklin, After the dividend has been paid and the 1 Strange, 24.) A note payable two months required amount has been carried to the surplus after a certain ship was paid off was held account, the balance of earnings resulting from negotiable even though the event was not the year's operations is payable to the United necessarily bound to occur. The court in States as a franchise tax. The amount of this case, however, admitted that paying off this tax can not be determined until the end of the ship was a contingency which would the year. Banks should, therefore, carry all ordinarily make the note nonnegotiable, but net earnings in the account of Undivided went on to explain that because this ship was Profits until the end of the fiscal year and a Government one, the payment was a Gov- should then declare a dividend, and the balance, ernment obligation which must be performed. if any, should be paid half to the United States But even on this ground, the case has always as a franchise tax and half into the surplus been discredited by courts in which it has fund, as provided by section 7. been cited. When the banks have been in operation for It seems, therefore, that a note or draft a sufficient length of time to enable them to "payable on arrival of car/7 which may or estimate with reasonable accuracy their annual may not arrive, would very probably be held earnings and expenses, the Board might, in case Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

AUGUST 1, 1915. FEDEEAL RESERVE BULLETIN. 221 the Undivided Profit Account shows a sufficient reserve bank within six months of the date of amount to cover all contingencies, authorize maturity; and if so, under what circumstances the payment of the dividend in semiannual may such purchases be made ? instalments, but until that time the letter of In answer to question (1), regulation F the statute should be followed strictly in order reads in part as follows: to avoid probable complications. I. A. Federal reserve bank may purchase Respectfully, such warrants as are issued by a municipality. * * * M. C. ELLIOTT, (c) 3. Whose net funded indebtedness does Counsel. not exceed ten per centum of the valuation of To Hon. C. S. HAMLIN, its taxable property, to bo ascertained by the Governor, Federal Reserve Board, last preceding valuation of property for the assessment of taxes. This provision is not contained in the Interpretation of Regulation F» Series 1915. statute but is a matter of regulation. The The term "taxable property" as used in Regulation language to be construed is accordingly that of F-I-(c)-3 Series 1915, includes franchises in cases 7 where such franchises are actually taxed upon the valua- the Board, and it is within its discretion to tion set forth in the municipality's return of taxable determine whether or not the term "taxable property. property" shall include franchises. That part of section 14 which provides that "revenue The courts have generally construed a franbonds * * * with a maturity from date of purchase chise to be property subject to taxation and so of not exceeding six months" may be purchased, contemgiving the language "taxable property" its plates that such bonds might at the date of issue have a maturity of longer than six months. Bonds are eligible ordinary interpretation it would seem clear for purchase under this Bection if at the time of issue pro- that franchises which are actually taxed and vision is made for the establishment of a redemption which are included in the city's return of taxafund which will be sufficient and available for the payble property should be taken into considerament of the bonds at maturity, provided, of course, that tion in determining the net funded indebtedat the time of purchase the bonds have not more than six months to run. ness as provided in Regulation F* Certified copies of opinions of counsel on municipal In the case of the West River Bridge Comissues may be used by Federal reserve banks under the pany v. Dix et al (6 How. (U. S.), 507-533), provisions of this regulation irrespective of which bank the court said: obtained the original opinion. A franchise is property, and nothing more: FEBRUARY 9, 1915. it is incorporeal property, and is so defined SIR: The following questions have been by Justice Blackstone when treating in his second volume. (Ch. 3, p. 20) of the Rights of referred to this office by the Board for an Things. opinion: In the case of Society for Savings v. Coite (6 (1) Under regulations F-(I)-(c)-3, does Wall (U. S.), 594-606), the court holds that the term "taxable property" include franthe franchise of a private corporation is a lechises where such franchises are actually taxed gitimate subject of taxation. This doctrine is upon the valuation set forth in the city's return affirmed in the case of Provident Institution v. of taxable property % Massachusetts (6 Wall (U, &), 611-623), and (2) Under section 14 of the Federal reserve again in the case of Hamilton Company v. act, subsection (6) where the Federal reserve Massachusetts (6 Wall (U. S.), 632-638). bank is authorized to "buy and sell * * * In answer to the second inquiry submitted, bilk, notes, revenue bonds and warrants with the act provides that "revenue bonds * * * a maturity from date of purchase of not with a maturity from date of purchase of not exceeding six months/' does this language exceeding sLx months" may be purchased. permit the purchase of bonds having long The provision that such bonds must mature maturities but which are acquired by a Federal Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

222 FEDERAL RESERVE BULLETIN. AUGUST 1,1915. within six months from the "date of purchase" with the requirement of this paragraph if it clearly indicates that Congress contemplated secures a certified copy of such opinion and that such bonds might have a maturity of approval. longer than six months at the date of issue. Respectfully, It is true that the term "revenue bonds" is (Signed) M. C. ELLIOTT, sometimes construed to refer to short-term Counsel* bonds or warrants issued by municipalities to To Hon, CHARLES S, HAMLIN, defray expenses for a short period prior to the Governor Federal Reserve Board. collection of taxes. The word "revenue," however, does not of Interpretation of Clayton Act. itself limit the term of a bond to that of a fixed maximum maturity but instead refers to the The counsel of the Federal Reserve Board character or nature of the bond rather than to has prepared the following opinion in answer the time of its maturity. to a number of letters received by the Board In other words, giving the language its ordi- and referred to him for consideration which nary interpretation, it would seem merely to involve an interpretation of section 8 of the indicate bonds of any maturity, payment of act approved October 15, 1914, and generally which is guaranteed out of the collection of described as the Clayton Act. taxes or assured revenues. While the provisions of section 8 do not, The act specifically provides that such bonds under the terms of the act, become operative must be issued in anticipation of the collection until two years from the date of its passage—of taxes or assured revenues, but does not that is to say, until October 15, 1916—it prescribe how long in advance of collection of appears to be necessary for the banks to obsuch taxes the bonds may be issued. The tain rulings on certain questions in order to provisions of the act would seem to be comarrange for the personnel of their boards of plied with if at the time of issue provision is directors after this time. made for the establishment of a redemption The two questions which are the subject of or sinking fund which will be sufficient and most of the letters referred to are as follows: available for the payment of the bonds at (1) If a director of a national bank having maturity and at the time of their purchase deposits, capital, surplus, and undivided profits they may be said, by reason of such sinking aggregating more than $5,000,000 is elected at fund, to be self-liquidating at the expiration of the annual meeting in January, 1916, may he, without violating section 8 of the act referred six months. to, continue to serve until January, 1917, and It i3, of course, understood that all other at the same time serve as a director of another provisions of regulation F, series 1915, must national bank ? be complied with before such bonds may be (2) Can a director of a State bank or trust purchased. company having deposits, capital, surplus, and undivided profits aggregating mork than In this connection I beg to call attention to $5,000,000 serve after October 15, 1916, a3 a Paragraph VI, regulation F, which is as follows: director of another State bank or trust com- "Opinion of recognized counsel on municipal pany which is a member of a Federal reserve issues or of the regularly appointed counsel of bank? the municipality as to the legality of the issue Both of these questions involve a considerashall be secured and approved in each case by tion of that part of section 8 of the act referred counsel for the Federal reserve bank," to which reads as follows: The Board has ruled that where such opinions That from and after two years from the date have been procured and approved by counsel of the approval of this act no person shall at the for a Federal reserve bank, any other Federal same time be a director or other officer or emreserve bank shall be deemed to have complied ployee of more than one bank, banking associa- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

AUGUST 1,1915. FEDERAL KESEBVE BULLETIN. 223 tion or trust company, organized or operating lawful for him to continue as such for one year under the laws of the United States, either of thereafter under said election or employment. which has deposits, capital, surplus, and undi- The obvious purpose of this provision is to vided profits aggregating more than $5,000,000; permit a director to serve out his term if the and no private banker or person who is a director in any bank or trust company, organized bank has aggregate resources of less than and operating under the laws of a State, having 85,000,000 at the time of his election but deposits, capital, surplus, and undivided profits subsequently the resources are increased to an aggregating more than $5,000,000 shall be eligiamount in excess of §5,000,000. ble to be a director in any bank or banking It has been suggested that by reason of this association organized or operating under the laws of the United States. The eligibility of a provision directors elected in January, 1916, director, officer or employee under the fore- may continue to serve until January, 1917, going provisions shall be determined by the although they would be ineligible if elected after average amount of deposits, capital, surplus, October 15,1916. It will be observed, however and undivided profits as shown in the official that the language quoted is "a part of the same statements of such bank, banking association, or trust company filed as provided by law dur- sentence which fixes the time for calculating ing the fiscal year next preceding the date set the aggregate resources of the bank in order to for the annual election of directors, and when determine the eligibility of such director, and a director, officer, or employee has been elected following the ordinary rules of interpretation or selected in' accordance with the provisions of statutes it is necessary to consider the conof this act it shall be lawful for him to continue as such for one year thereafter under said text in order to determine when a director election or employment. has been elected in accordance with the provisions of the act. This act became a law on October 15, 1914. As above shown, it provides in terms that after Considering this sentence as a whole it seems clear that if a bank has aggregate resources of two years from that date (that is to say, Oct. more than $5,000,000 on January 1, 1916, 15,1916) "no person shall at the same time be a the stockholders are charged with notice that director * * •* of more than one bank * * * after October 15, 1916, a director of such bank organized or operating under the laws of the will be ineligible to serve on the board of any United States, either of which has deposits, other bank organized or operating under the capital, surplus, and undivided profits aggrelaws of the United States. gating more than $5,000,000/' This language While Congress manifestly intended to give is free from ambiguity and makes it entirely banks two years from the date of the passage clear that after October 15, 1916, a person who of the act to adjust the personnel of their -is a director of a bank with aggregate resources boards of directors in order to conform to the of more than $5,000,000, organized or operrequirements of the act referred to, it is ating under the laws of the United States or equally manifest that it did not intend to under the laws of any State, shall be ineligiallow more than two years for this purble to serve as a director of any other bank pose and the first question should, in the organized under the laws of the United States. opinion of this office, be answered in the In determining whether a bank has aggregate negative. resources of more than $5,000,000, the act The determination of the second question provides that the aggregate amount of deposits depends upon the construction to be placed capital, surplus, and undivided profits of such upon the language "organized or operating bank, as shown in the official statement filed under the laws of the United States." during the fiscal year next preceding the date As above shown, a person who is a director set for the annual election of officers, shall be of a national bank, State bank, or trust comtaken as a basis, and then provides that— pany having aggregate resources of more than When a director has been elected in accord- $5,000,000 is ineligible to serve on the board ance with the provisions of this act it shall be Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

224 FEDERAL KESEBVE BULLETIN. AUGUST 1,1915. of directors of another bank organized or appears that the section above quoted origioperating under the laws of the United States. nally read as follows: State banks and trust companies are organ- That from and after two years from the date ized under the laws of the State in which they of the approval of this act no person shall at are incorporated and exercise those corporate the same time be a director * * * of more than one bank * * * organized and operpowers which are granted them by the laws ating under the laws of the United States, either of the State, or which are incidental to the of which has deposits, capital, surplus and unpowers thu3 granted. In a certain sense, divided profits aggregating $2,500,000 therefore, they may be said to be both organ- In the amended bill of May 6, 1914, the lanized and operating under the laws of the guage " organized and operating under the laws State. On the other hand, when such banks of the United States" was changed to read "orbecome members of the Federal reserve sysganized or operating under the laws of the tem they subject themselves to certain Federal United States" and this language was retained laws. For example, they must maintain reby the Senate, by the conferees and in the act serve required by the Federal reserve act; they as it became a law. The use of the word "or" are subject to examination and supervision by in place of the word lt and" is, therefore, signifi- Federal authorities, and must conform to cant, and in order to give it a reasonable meancertain laws relating to investment of their ing it is necessary to conclude that Congress funds. Accordingly, they may be said to intended this provision to apply to State banks be operating under both State and Federal and trust companies which, though organized law. under State law, operate under the laws of the Congress has specified certain requirements United States when they become members of to which State banks and trust companies must the Federal reserve system, as well as to naconform as a condition of membership in the tional banks which are organized and operate Federal reserve system. It is, therefore, neces- under the laws of the United States. sary to determine whether it was the intention In the opinion of this office, therefore, a of Congress, by section 8 of the Clayton Act, to person who is a director or other officer of a provide as a further condition of membership bank having aggregate resources of more than in the Federal reserve system, that the direc- $5,000,000 will be ineligible to serve on the torates of such banks shall not include any per- board of directors of a State bank or trust comson who is a director of another bank having pany which is a member of the Federal reserve aggregate resources of more than $5,000,000. system after October 15, 1916. From an examination of the original bill in- Both questions should, accordingly, be antroduced by Mr. Clayton on April 14, 1914, it swered in the negative. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

AUGUST 1, 1915. FEDERAL RESERVE BULLETIN. 225 GENERAL BUSINESS CONDITIONS. notes, 2J to 2£ per cent; bank acceptances, 2\ to 2$ per cent; excess reserve in Boston banks, General business and banking conditions are $45,974,000, an increase of $10,105,000 over described in reports made by Federal reserve last month and an increase of $36,008,286 over agents for the 12 Federal reserve districts. the same date last year. Below are given in detail digests of condi- The cotton mill situation in New Bedford tions in the various districts substantially as and other fine-goods centers continues good. reported by Federal reserve agents. On the other hand, the reports from Fall River are not quite as satisfactory as before and the DISTRICT NO. 1—BOSTON. cotton mill situation is slightly duller, owing There is little change in this district over last to the fact that mills hesitate to buy cotton to month. While the business situation, both in any extent, and accumulate goods. The business and financially, is in a healthy conshoe and leather trade, while reporting fewer dition, there is a general hesitancy, due to the foreign orders, shows a slight improvement in unsettled conditions produced by the war in general. The high price of leather has no Europe. doubt deterred dealers from placing their Although money continues to accumulate in usual seasonable orders, but most of the manuthe large cities and is freer in the country disfacturers feel that the conditions are certain to tricts, banks are disinclined to put out money improve. The wool and woolen trade is dull. at the low prevailing rates, the feeling being Here again the high price of wool has been a that as the crop-moving time approaches there deterrent feature. Wool dealers, for the most will be a better demand for money and an impart, have made considerable money during provement in rates. There seems to be a gen. the past season, and are disinclined to replenish eral feeling that rates have touched bottom and their stock at present prices and the price of that from now on an improvement may be ex- this staple is no doubt affecting the mill situapected. General business, except in a few tion as well as the goods, and a hand to mouth lines, is dull, and orders are not coming in as policy of buying is the rule. freely as heretofore. No accumulation of goods Imports and exports to July 1 compared is reported in any of the lines, and the high with a year ago are as follows: price of staples especially in leather and wool^ Exports first six months: and the unwillingness of the merchants to 1914 ." $30,282,075 increase their merchandise is responsible, no 1915 65,792,193 doubt, for much of the dullness. This is es- Imports first six months: pecially noticeable in the trades using wool 1914 $99,439,188 and leather. Business seems to be waiting, but 1915 89,139,744 thereis a feeling of optimism, and it is believed Building operations up to the 1st of July as that from now on an improvement may be ex- compared with the preceding years are as folpected, though perhaps a very slow one. The lows: unseasonable weather and the abundance of Contracts awarded to date, June 30: rain have no doubt also had their effect. The 1915 $85,111,000 summer resorts, both seashore and mountain, 1914 89,212,000 complain of dull business. 1913 86,174,000 Money conditions are about the same as last DISTRICT NO. 2—NEW YORK. month, with perhaps a slight hardening. There Reports from bankers in New York and is very little demand for money and rates con- northern New Jersey state that crops look tinue very easy—call money to brokers, 3 per very well and promise large yields, but in cent; commercial paper, 3J to 4J per cent; some sections the hay crop will be under averloans to correspondents, 3£ to 4 per cent; town age, due to wet weather. The dairy business Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

226 FEDERAL EESEBVE BULLETIN. AUGUST l, 1915, continues good. Some complaints have been imports, $488,161,854 against $523,152,001. received of slackness in retail trade and un- The latest compilation of railroad earnings satisfactory collections. Manufacturing in shows a gain in May, 1915, over May, 1914, of steel, leather, and textile lines shows improve" $1,324,785 gross and $14,619,397 net. ment. Great activity continues in the pro- From June 1 to July 18 the New York clearduction of supplies for shipment to Europe ing house banks' loans increased $115,941,000, Building operations are curtailed and depres- deposits increased $163,881,000, and excess sion is still evident in lumber, foundries, im- reserves decreased $13,877,000, The market plement works, and silk mills. Strikes that rates for money have remained easy and pracwere referred to a month ago are still on in tically unchanged since the middle of June. southern and northern districts. Deposits Bankers7 acceptances command slightly easier generally are large, but in most sections the rates of 2tV to 2f per cent and the supply is demand for loans is very light. lighter. Prime commercial paper is in great During June the usual mid-year inventory demand, with light offerings at 3 J to 4 per cent time dullness prevailed in New York City. with occasional sales at 3 per cent. The large Improvement in retail trade has been re- import movement of gold practically stopped ported recently. Wholesale houses state that when the special deposits were moved from collections are very satisfactory. More active Ottawa. Sterling and continental bills of exand firmer markets have developed, largely change declined to new low levels, quotations from foreign orders, in such lines as steel, coal* for checks touched 4.7625, 5.62}, and 81.50 for leather, and wool. Purchases of cotton goods sterling, francs, and marks, respectively. Rates are restricted by the weakness in the price of have been stronger and steadier during the past raw cotton. Labor is more fully employed week. The London discount rate has inand there are strikes in some branches of the creased and is now 5J per cent, as against 2J clothing trade. Real Estate agents report per cent on June 1, conditions better than a year ago and improved over the preceding month. Renting is more DISTRICT NO, 3—PHILADELPHIA. active, especially in the large office buildings. The most striking feature of the business A comparison of various statistics for June, situation in this district is the absence of en- 1915, with June, 1914, shows the following couraging reports on conditions in Philadelchanges: Exchanges through the New York phia, contrasted with the reported improve- Clearing House, $8,025,481,549, a gain of ment in conditions throughout the rest of the $181,278,782; building permits, 37 to cost district. 83,290,330, an increase of 5 in number and a In the Philadelphia vicinity business in decrease of 3103,320 in amount; shares sold domestic lines is dull and below normai. on the New York Stock Exchange, 10,900,000, Almost no improvement is perceptible ov:r an increase of 6,916,000 over a year ago, but last month. A spirit of caution and hesitation a decrease of 1,821,000 from the preceding exists. The outlook is uncertain, due permonth; transactions in bonds on the exchange haps to uncertainty regarding the business amounted to $57,824,000, an increase of future of certain standard industries when the 54,330,000 over a year ago, but a decrease of war shall have been terminated. $6,800,000 from the preceding month; new In many specialized lines, such as the iron incorporations, $80,091,100, an increase of and steel industry, abnormal conditions con- $34,089,000; failures, 241, for $2,018,881, a tinue because of foreign demand. New plants decrease of 15 in number and $13,508,090 in are being built, new machinery installed, and amount. Since January 1 exports from the several towns are experiencing boom times. port are $684,497,674, against $483,485,183; As a result, the number of men out of employ- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

AUGUST 1, 1915. FEDERAL RESERVE BULLETIN. 227 merit has been greatly reduced, and retail trade industry (the most important in* the district) has increased accordingly. The exports of the began to show a change about the middle of port of Philadelphia are increasing, and bank last December, and reached its full force clearings are higher than for several months within the last three or four weeks. The tinpast. Perhaps the best feature of the business plate industry is» especially flourishing, inassituation in Philadelphia is the shipbuilding much as the supply of canned goods was very industry, which is operating at full capacity. quickly exhausted by the war demand. Gen- In sections of this district outside of Phila- erally speaking, all steel mills are running delphia business conditions are slowly improv- practically full, with order books filled for ing, and some sections are reported as prosper- several months ahead. Steel men predict ous. Agricultural conditions are generally maximum operations for the rest of this year, favorable, although in some sections where and at satisfactory prices. Semifinished and crops are good prices are low. Manufacturing finished lines have steadily improved in price lines are improving and are doing relatively until they are now -35 per ton above the lowest better than retail lines. Railroad shops have pomt reached during the depression of 1914. not yet recovered from the industrial depres- Coke business is much better because of the sion, although some progress is reported. In- starting up of so many furnaces. Coal busicreased numbers of loaded freight cars are ness is improved somewhat owing to shipmoving and a decrease is shown in the number ment of coal to the lakes for consumption in of idle cars and good order cars. The anthra- the Northwest next winter. Prices still rule cite coal output is below normal. Machinery, unsatisfactory. The lumber business is far boiler, and foundry concerns are doing well. from normal either in production or price. Leather continues strong, especially as to the The damage done to crops by excessive rains heavier grades. Improvement is reported in and floods has not been great, except in the most textile lines, although the dyestuffs situa- southern part of the district, where there tion is still critical. may be considerable reduction in the wheat Rates for money are abnormally easy, with and tobacco yield. no evidence of any tendency to harden. Most The mercantile trade has not yet felt the banks are carrying large excess balances of new impetus to business, but improvement is unemployed funds, which they are unable to noted in seasonable lines, and a distinctly loan in ways which are satisfactory to them. better feeling prevails both among wholesale The purchase of commercial paper by the and retail merchants. Manufacturers supplybanks is restricted because prime commercial ing the building trades report business only paper at satisfactory rates is scarce, and new fair. names of the better grade are not appearing in Continued ease of money is apparent throughthe market to any extent. Purchases of paper out the district. July 1, the usual interest are being made at from 3 to 4 per cent, with date for savings accounts, witnessed lighter the most active market at 3£ per cent. There withdrawals than other corresponding periods is very little demand for either call loans or for several years. time loans with collateral, the rates for both Underlying conditions are healthy, due to the classes of loans being 3 J to 4 per cent. fact that concerns are not carrying large stocks, have passed through a period of DISTRICT NO. 4—CLEVELAND. enforced liquidation, resulting in putting vari- The steel business, both in unfinished prod- ous economies into effect, and altogether there ucts and finished materials, has made a decided is a marked improvement in the industries advance since last month's report. This upon which this district depends. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

228 FEDERAL EESEEVE BULLETIN, AUGUST 1,1915. DISTRICT NO. 5—RICHMOND. The opening of the Warrior River, affording In this district during July wheat and oats cheaper rates of transportation to the Birminghave been harvested at prices which, if lower ham district and the Gulf, has given an impetus than the fancy figures which prevailed last to trade development in coal, ores, and cement, fall, have permitted substantial profit to the and the stiffening in the price of pig iron is farmer. Planters who were moved to cut cotton causing an increase of activity in that district. acreage in favor of these cereals should be While the improvement of financial facilities satisfied with the result of the experiment. for handling the crop has somewhat stimulated Wheat at SI. 10 and oats at 60 cents, both trade, forward buying by merchants and the sold, should look better, certainly at the mo- larger movements of trade appear to be awaitment, than cotton awaiting the possibilities ing development as to the disposition and price of an unknown future three months distant. of cotton. Packers* seasonal truck has brought prices un- Cotton mills are running to full capacity and satisfactory to the grower, as canners carrying a number of new mills are reported under conlarge stocks from the pack of last year have struction. Many of the mills are filled with entered the market only on their own terms. rush orders for khaki cloth and tent material. Potatoes, heavily overgrown, are finding low Building operations throughout the district prices. continue below normal, but there has been a Cotton, a little late, is in excellent condition, considerable improvement during July as combut softening prices are not comforting to the pared with preceding months. The railroads planters, who, however, this year will have at report good passenger travel, with little or no their command better facilities for financing change in freight traffic. the crop than heretofore have been offered. The Atlanta post office reports a falling off of Building undertakings generally are limited to 5 per cent in receipts for the year ending June repair or smaller operations, and related lines 30, 1915, as compared with the year ending are dull. Retail trade is very quiet, reflecting June 30, 1914. both unusual economy practiced by the public Agricultural prospects are reported exceedand general midsummer dullness. Coal seems ingly bright. Cotton is in fine condition, and to be in somewhat better position both with the States in this district will produce a remarkrespect to movement and price. Banks in ably large grain crop. Reports indicate a tliis district are experiencing a somewhat better 70,000,000-bushel increase in corn, wheat, and demand for credit for use in meeting usual oats, with an increase in the rice crop of apseasonal needs for expenses pending maturity proximately 5,000,000 bushels. of the larger staple crops. While this demand is apt to continue during DISTRICT NO. 7—CHICAGO. August and September, it will be well scattered General business conditions in this district and its aggregate amount should not be great. continue to show 3ome signs of improvement. Business viewed as a whole is just about hold- Distinct improvement is noticeable in various ing a steady position, which probably is all lines that are benefited by foreign demand. that can bo expected at this season. The war and the uncertainty incident thereto cause hesitation and caution and are responsible DISTRICT NO. 6—ATLANTA. for less noticeable increase in other lines and Marked conservatism is characteristic in the entire absence of improvement in some. The commercial and industrial affairs of the Sixth settlement of the strike in the building and Federal Reserve District, but with an optimis- construction trades at Chicago, the more seatic tone. While there is a tendency to improve- sonable weather conditions, magnificent harment, conditions do not show any material vest prospects, and easy money, all make for changes as a whole during the month of July. Igood basic conditions. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

AUGUST 1,1915. FEDERAL RESERVE BULLETIN. 229 Noticeable progress, due to orders for crude idly, and seasonable weather from now on will and finished products of the furnaces, mills, allow the necessary cultivation and insure a and factories, is seen at Gary, South Chicago, successful harvest. The rain in June has caused Pullman, Chicago Heights, Moline, Sioux City, the tobacco plants to grow rapidly and indica- Indianapolis, South Bend, Detroit, and Grand tions are that the crop will be coarser than is Eapids. This is due not merely to "war desirable. Small-fruit crops appear to have orders/' but to the demands of railroads and suffered more damage from rain than the other other interests. agricultural products. The live-stock market The general merchandise market has shown in this district shows the same activity which improvement, although affected by the delayed was noted in the April and May reports. arrival of warm weather. There has been little change in banking Commercial paper rates remain at low conditions in this district. Current rates for figures—3J to 4 per cent. discounts remain below the normal and money continues plentiful. There is a scarcity of DISTRICT NO. 8—ST. LOUIS. commercial paper of the best names at a rate There has been little change in general busito tempt the bankers. ness conditions in this district during the month General business conditions show little change of June. The business of wholesale interests in the past 30 days. Conditions have not dealing in what may be called the necessities improved as rapidly as indications would seem of life remains below normal, but the volume to warrant, and from present appearances of unfilled orders on hand is more nearly nor- improvement will be slow until after the mal and is an indication of an improvement harvest. this fall. The manufacturing interests appear to be in much the same condition as the gen- DISTRICT NO. 9—MINNEAPOLIS. eral jobbing interests, with the exception of No important changes have occurred during those companies whose product is available for the past 30 days, except a gradual strengthenexport where an increased activity is noted. ing of confidence in the crop outlook, which Failures in this district show an appreciable has developed a more active demand for money falling off for the second quarter of 1915.as during the past two weeks. The leading compared to the first quarter. commercial banks are of the opinion that if the The rainfall for June was considerably above crops suffer no damage, this demand will bethe normal, but does not seem to have mate- come quite active within a very short time, rially affected agricultural development except- continuing through August. ing in the lowlands subject to overflow, where From the Great Lakes to the eastern slope damage has been reported. Reports indicate of the Rocky Mountains the condition of the that the wheat crop will be larger than the five- small grain crop is excellent, with the excepyear average and the immediate return of sea- tion that rye has suffered damage in North sonable weather would seem to insure a good Dakota, and that theie has been some damage harvest. The cool weather and continued rains to wheat, due to excessive moisture, on the in June may have retarded the cotton crop, but heavy soils of the Red River Valley and other seasonable weather from now on would seem districts. The season has been one of unusual to insure its favorable development. Reports rainfall but the damage to grain on the heavier indicate a reduction of 12 to 18 per cent in the soils due to this cause will be considerably more cotton acreage in the States within this dis- than offset by unusually good yields in parts trict. Reports on the corn, oats, and hay of the district where a large acreage of grain crops indicate that there has been little or no has been planted on the higher and lighter damage done by the rainy season. Corn, ex- soils. Montana probably never had a better cepting in the overflowed land, has grown rap- crop outlook at this season of the year. With Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

230 FEDEEAL KESEEVE BULLETIN. AUGUST 1,1915. the exceptions already noted, the same is true wholesale trade at the large centers is in good of North Dakota and Minnesota. condition. The only lines in which there is A highly profitable element in the crop noticeable depression are in lumber, both production of the ninth district is hay and wholesale and retail, and certain lines of forage, which under normal conditions should manufacturing. Many industrial plants are amount to about 25,000,000 tons. This sea- showing an increased volume of orders and an son has been unusually favorable to the heavy improved activity. The agricultural outlook growth of grasses and alfalfa, and the crop over the district is excellent, and the business that is now being cut will probably run con- situation, generally speaking, is good, although siderably above the normal yield and will quiet. The best opinion seems to agree that show an unusually heavy tonnage at good if present conditions continue the fall months prices. Minnesota and Wisconsin are the will bring a period of very active trade with leading western States in potato production, considerable prosperity to the entire district. normally affording a yield of from 60,000,000 to 65,000,000 bushels. The potato crop shows DISTRICT NO. 10-KANSAS CITY, Although some sections of district No. 10 an increased acreage this year and is making have been visited with wind, flood, and other an excellent growth, with the prospect of storm damage while other sections are in need very heavy yields. July has brought some of rain, yet, as a whole, agricultural and hortibreak in the continued cool and rainy weather, cultural conditions are about normal. The with an improvement in corn prospects, harvest yield will be less than last year's figures, although it is beginning to be realized that but the record of 1914 was phenomenal. The corn wiU not be an average crop this year and wheat harvest is progressing northward, and that there is considerable doubt whether a is now centered in northern Kansas. Threshgood deal of it will have opportunity to fully mature. The agricultural colleges are advis- ing is going on throughout the southern portion ing the storing of corn from the 1914 crop of the district, and the yield reported is a fair for 1916 planting, fearing that this year's average of quality and quantity. yield may not have the proper germinating Corn is doing well; there is a good stand and qualities. A very beneficial effect of the pros- every indication points to a bumper crop. The pect that of a corn crop, only poor to fair, has production of sugar beets in this district is been a decided increase of activities on the slightly above normal. The yield in various part of farmers in constructing silos. Should sections will range from 12£ to 20 tons per acre, August weather prove unfavorable, many possibly averaging 15 tons. The milling indusfarmers will cut their corn for ensilage and try has experienced great activity, and the feed it. financial statements of milling concerns now in the hands of bankers show large profits. The There has been a decrease during the past live-stock market is active, and excessive rains month in the amount of idle labor. The have provided splendid pasturage. Grass catactivities in the copper districts of northern tle are already commencing to move, and prices Michigan and Montana have had a beneficial are firm. During the present month the record effect in this respect, and the month has witprice for 1915 and the highest price ever paid nessed heavier shipping orders at the northern in the month of July, §10 JO, was quoted on the Minnesota iron mines, thus improving labor Kansas City market. Receipts of hogs at and business conditions in that district. The market centers have been rather light, with represent outlook is for heavy ore shipments for sult that prices have ranged from strong to lower lake ports during the remainder of the higher. The horse and mule market is very season. active, top prices ruling on all marketable Retail merchandising over the district is stock. about normal, with collections fair. The Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

AUGUST 1,1915. FEDERAL RESERVE BULLETIN. 231 The lead and zinc industry is still active, force, and within 10 days a very considerable with prices far above normal, although not as volume will be coming into the market. First high as 15 days ago. Coal mining is showing bales are now everyday occurrences. Great increased activity by reason of the demand activity has been displayed during the past for thrashing and storage purposes. The oil month by various committees laboring for industry is quiet by reason of low prices of the establishment of warehouses to take care raw material and the limited supply accepted of the oncoming cotton crop. A considerable by the pipe lines. number of houses are being constructed, Wholesale and retail trade is normal, with and others are promised by the time cotton is fair collections. Much building and improve- actually ready for storage. It is anticipated ment work is noticeaWe, with many large civic that very large totals of bales will be held under projects under way. warehouse receipt in an effort to save the mar- Banking business is quiet and will probably ket from glut and disorganization. The cotton continue so until the marketing of the wheat growers of the district have not heretofore crop actually commences. Undoubtedly, if faced their real problem with so determined reasonable prices are received for this year's and serious a front. Present advices are to the crops, there will he heavy liquidation during effect that the crop in this State will be very August and September. In some sections of materially reduced. the district there is an excess of loanable The live stock interests of the State continue funds, bank deposits are increasing, and the in most prosperous condition. Relatively high demand for money is negligible. In other por- prices prevail, and throughout the district tions the demand for money is quite active, pasturage conditions are far above normal. although local bankers are amply able to meet The lumber industry shows slight improveall requirements. Generally speaking, how- ment; demand has increased somewhat and ever, the financial situation prevailing through- prices are a shade better. The oil production out District No. 10 reflects a degree of prosper- of this district has grown to such a point that ity heretofore unequaled. the price for high-grade oil has been cut to 35 cents per barrel, and even a further reduc- DISTRICT NO. 11—DALLAS. tion is anticipated. It is believed, however, This district is preeminently engaged in that this may only be temporary, since the agriculture. The progress of crops, therefore, output from the Gushing field in Oklahoma is is of primary importance. now rapidly decreasing. Dry weather, combined with hot winds, has Member banks report that demand with tended to cut short the corn over considerable them is slightly on the increase, although far areas, but spite of this, the earlier forecast of from normal; also deposits are tending to the bumper corn crop of the State remains true. slump. Many of our reserve city members at The oat crop has been harvested, and barring this season last year were heavy borrowers. considerable deterioration through North Texas This year they report few or no bills payable. and Oklahoma counties, on account of heavy This condition is reflected more or less by the rains, the crop is excellent. Wheat has been thinness of demand with us. almost entirely harvested under favorable con- General business conditions are improving; ditions. Both oats and wheat are now being merchants report better sales with more satisoffered freely on the market. factory liquidations. The cotton plant has made satisfactory progress in most sections, particularly in the DISTRICT NO. 12—SAN FRANCISCO. southeast and central sections. Already in In this district there is general abundance of South Texas the picking of cotton has begun in crops in great variety. There has already been Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

232 FEDEKAL EESEEVE BULLETIN. AUGUST 1, much harvesting and other crops have been As a whole it is undeniable that this district is satisfactorily progressing to maturity. It is adding steadily and largely to its wealth. reported that the greatest cereal crop in the More hopeful expressions are received as to history of Oregon, Washington, and Idaho is lumber, although there seems little tangible now being gathered. In citrus fruits Valencia reason. One confident expression was based oranges are moving at highly satisfactory upon the larger activity in steel which, it was prices. Fresh fruits, melons, and vegetables said, is always a precursor of increased activity are in large supply. in lumber. Ordinarily such conditions would ensure Chinese capitalists are said to be laying prosperity; war conditions, however, introduce plans for a trans-Pacific line of steamers, and elements of surprising uncertainty. The lack it has been suggested that they may buy the of bottoms for exports hampers the marketing Pacific Mail steamers. More ships would be a of the cereal crops; warehouses are filling, and great advantage to the Pacific coast. Neverit is probable that grain will move slowly from theless, during the first six months of 1915 growers' hands. It seems reasonable to expect exports from San Francisco totaled $39,000,000 that delayed marketing may have a tendency as against $24,000,000 for the same period in to correspondingly delay trade activity. 1914, imports increasing from §5,400,000 to The prune crop is reported as abundant and $7,800,000. good, with contract prices about 33$ per cent Bank clearings give a rough measure of trade less than last year. Canners buying of such activity. Total clearings for the four leading fruits as peaches and apricots are naturally pro- Pacific coast cities during the first six months portioned to orders in hand, which are reported of this year have been approximately 7 per to be approximately 33$ per cent less than at cent less than for the first six months of 1914. this time last year. It is said that prices as This moderate curtailment of business is furlow as S6 per ton are being paid for peaches, as ther evidenced by the considerable increase of against SIS per ton last year. It is asserted idle funds in both national and State banks that more than the usual proportion of fruit throughout the district. During this fall, as will be dried, and some may even be thrown is usual each fall, there will, of course, be a away. It is clear that large crops will not considerable increase in the aggregate of loans, mean uniformly profitable results. A fair but there seems reason to believe that the average, however, is had by high prices for available means of the banks of this district some products offsetting low prices for others are such as to readily meet the requirements. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

AUGUST l, 1915. FEDERAL RESERVE BULLETIN. 233 Movement of Principal Assets and Liabilities of The amount of commercial paper held by the the Federal Reserve Banks. banks (exclusive of acceptances) increased from 9.9 millions on January 8 to 28.7 on The following diagrams illustrate the move- July 16. The amounts held show a practically ment of the principal assets and liabilities of continuous increase. The amount of acceptthe reserve banks during the present calendar ances held has increased rapidly since February year. The uppermost curve in the first group 19, when for the first time this type of paper is of diagrams indicates the growth since January shown among the assets of the banks in the 8 of net deposits, and shows an increase from weekly statement. The largest holdings are about 267.4 millions to 297.6 millions during reported for April 16. The subsequent week the period to July 16* Notable gains of deposits marks the beginning of a decline which, while are indicated for the second and third weeks not continuous, resulted in a reduction of these in January, also for the second and fourth holdings to less than 9 millions, shown in the weeks in June. The latter increases were, how- July 16 statement. ever, offset in part by a considerable decrease The sharp break in the two upper curves of shown for the first week in July. the second group after May 21 is due chiefly to The lowest curve, indicating the movement the liquidation of funds invested in warrants, of the total gold reserve, is shown to rise during a large portion of which fell due during the last the first week in February,. when the second installment of member banks7 payments on week of May. The weekly statement for May 21 shows a maximum total of 28.5 million of this account of capital was due, also during the class of paper. Four weeks later the total had entire month of June and the first week in July. declined to almost one-third (9.7 million) and The latter rise is due in part to the gain in on July 16 stood at 14.4 millions. deposits, noted for the same period, and in The investments in United States bonds, addition to the liquidation of investments in mainly of the 3 per cent type, show a slow municipal warrants which fell due about that though steady growth, the largest purchases time. Between January 8 and July 16 the dating back to the early part of the year. gold reserve of the system shows a gain of 28.7 - The movement of all funds invested in millions from 232.5 to 261.2 million dollars. commercial paper, acceptances, and public The cash reserve curve runs practically securities shows a practically unbroken upward parallel to the gold reserve curve and shows a trend up to May 28 when a total of $64,000,000 gain during the same period of 37.2 millions is shown which constituted about 142 per cent from 250.5 to 287.7 million dollars. of the paid-in capital of the banks. On July 16 The second group of curves presents the the total of the earning funds had decreased to movement of funds invested by the banks in about $60,000,000, which is only about 110 per commercial paper, bankers' acceptances, mucent of the total paid-in capital reported on nicipal warrants, and United States bonds. that date. These curves, except the lowest, indicate the The third diagram illustrates the comparative cumulative totals of the several classes of growth of individual deposits in the several investments. The lowest curve shows the classes of banks during the period 1900 to 1914. weekly movement of the item "Commercial The figures on which this diagram is based are paper on hand," while the uppermost curve those shown in the annual reports of the shows the movement of all four classes of Comptroller of the Currency. investments taken together. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

COMMERCIAL PAPER, BANK ACCEPTANCES AND INVESTMENTS SINCE BEGINNING OF CALENDAR YEAR 11 (8 25, J. 9 jo 23 3Q APR. MAY JUNE JULY Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

AUGUST 1,1915. FEDERAL RESERVE BULLETIN. 235 // /Z /3 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

236 FEDERAL BESEEVE BULLETIN. ADGUST 1,1915. GOLD IMPORTS AND EXPORTS. The Bureau of Foreign and Domestic Commerce in the Department of Commerce has furnished the following advance tables showing the imports and exports of gold, classified under the head of ore, bullion, and coin, also the total gold imports by countries for the fiscal years ending June 30, 1913 to 1915. Imports and exports of gold in ore, bullion, and coin, fiscal year ending June SO,1915. Coin, Ore and base Bullion, refined. Total gold. bullion- United Foreign. States* Ounces (troy). Maine and New Hampshire. $750 $874 $55 $1,679 Maryland 4,254 $50,000 54,254 New York 116,392 468,141 9,417,136 16,278,052 •4,859,498 30,671,078 Philadelphia 2 * 36 250 286 Porto Rico 1,351 1,351 Virginia 32 Florida 504 10,000 80,077 24,000 114,077 Mobile 20,010 20,010 New Orleans 399,836 50,512 466,442 Arizona 412,421 51,452 1,028,691 1,441,112 Eagle Pass 36,795 36 795 El Paso 145,359 68,634 "i," 372* 750' 1,518,109 Laredo 34,631 34 631 Alaska 148 248,920 4,111,207 •'89*936' 4,201,285 San Francisco 168,756 401,493 8,166,562 25,342 I 17,520,570 25,881,230 Southern California 6,334 26 447 7,331 Washington 3,676,759 100,438 1,987,090 481,060 f 498,000 6,642,909 Buffalo 4,421,526 80,909 I 4,502 435 Dakota 141,676 141 676 S M t. i c L h a ig w a r n ence 1,487,9 3 1 0 5 0 137 9 4 7 , , 8 2 7 3 4 9 0 2 0 2 7 , , 0 6 0 9 1 8 7 2 , , , 5 2 2 0 0 0 0 0 8 83,980,9 3 2 4 7 5 641,585 7 1 4, , 3 5 2 0 8 0 , , 5 4 2 6 0 0 Vermont 3,053 3,053 Total., 11,054,434 1,812,522 35,812,701 101,091,873 23,609,747, 171,568,755 EXPORTS—DOMESTIC, Maine and New Hampshire. 287 5,798 151,505 157,303 Massachusetts , 400,000 400,000 New York 490 1327,616 6,774,876 32,367,302 39,142 668 New Orleans 131,200 131 200 El Paso 30,000 30,000 Alaska 1,558 2,346 38,354 3,000 42,912 Hawaii 40,750 40,750 San Francisco 68,855 68,855 Washington 277,276 1,739 35,129 180,987 493,*392 Buffalo 1 7 3 9 , , 9 4 3 6 7 1 1,63 8 9 1 , , 4 1 2 11 6 816,478 2,537,015 D M u ic l h u i t g h a n and Superior. 1 2 0 5 8 2,0 5 9 1 1 7 3,000 62 5 7 , , 0 5 9 1 1 7 St. Lawrence 11,979 i 47 6 1 , , 0 3 8 9 5 9 9,7 1 0 0 0 3 , , 1 7 1 6 7 9 81,913,617 91,729,482 Vermont. 1,0 1 5 5 1 20,4 1 1 0 7 3 I 7,803,207 7,823,727 Total., 291,303 894,059 18,401,708 124,536,901 143,229,912 EXPOETS—FOREIGN. Maine and New Hampshire. 50 50 Massachusetts 10,606 10,606 Now York 2,933,186 2,944,186 Hawaii 10 Buffalo 20,660 20,660 Duluth and Superior. ' 20 St. Lawrence 18,550 18,550 Vermont 154 154 Total., 2,994,236 2,994,236 i United States mint or assay office bars. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

AUGUST 1,1915. FEDERAL EESEBVE BULLETIN. 237 Imports and exports of gold by countries during the 12 months mding June 30,1913,1914, and 1915. 1913 1914 1915 France 51,423,251 $1,195,284 311,552,926 495,234 14,176 United Kingdom—Bngland.. 10,020,731 2,565,423 1,965,270 Canada I, 25,261,153 38,319,111 110,761,093 Gentral American States 3,100,604 2,490,450 2,751,572 Mexico 20,517,203 11,116,942 6,324,163 West Indies 1,203,860 3,044,005 3,393,944 South America 4,266,401 6,342,955 6,301,321 China 14,845 6,268,263 Japan 1,817,444 480,040 17,745,162 Australia and Tasmania.., 813,578 559,554 706,241 All other countries 254,721 410,719 3,798,800 Total.. 69,194,025 66,538,659 171,568,755 EXPORTS—FOREIGN AKD DOMESTIC. Belgium. 661,044 221,310 France., 39,553,486 86,021,273 6,761,361 Germany 1,464,000 1,018,913 United Kingdom—England.. 1,296,771 27,226,603 Canada 11,165,958 19,388,441 103,455,383 West Indies: Cuba 591,656 1,186,278 6,325,086 Other West Indies 288,445 175,676 243,220 All other North America 604,329 2,220,090 352,132 South America 23,316,721 494,012 1,515,658 China , 103,350 Hongkong 11,090 5,890 46,905 All other countries 2 543 9,875 297,800 Total.. 77,762,622 112,038,529 146,224,148 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

238 FEDERAL BESERVE BULLETIN. AUGUST 1,1915. Below follows statement of classified imports and exports of gold for the weeks ending June 25, July 2, 9, 16, and 23, and the cumulative period January 1 to July 23, 1915. These data were furnished the Board by collectors of customs. Imports of gold, by customs districts, Jan. 1 to July 23, 1915. [In thousands of dollars.] h r ! oB For week ending June 25. Bullion, refined United States coin Foreign coin Total ^ For week ending July 2. Orft and base bullion Tltillinn rpfined United statesonin Total i For week ending July 9. Ore and base bullion Bullion, refined TFoTrnGitPiifml sctoaitnes oniri Total For week ending July 16. Ore and base bullion Bullion refined United States coin Foreitm coin... .... Total For iceeb ending July S3. Ore and base bullion United States mint or assay office bars Bullion, refined Unitod States coin Foreign coin Total Jan. 1 to July 2S. Ore and base bullion 1 Unitod States mint or assay office bars Bullion, refined Unitod States coin Foreign coin Total 1 .dnalyraM 50 50 .kroY woN 25 414 3 462 4 65 2 12 83 32 25S 2 2S 320 2 411 2 307 .ociR otroP — 30 - 2 750 — 22 175 - 193 396 = • 269 6,391 .... 17 615 1 4,003 j.... 28,278 1 j .adirolF j c 6 — 10 A 43 .snaelrO weN I o 22 5 5 1 31 31 3 3 252 ..... 253 .anozirA 3 4 26 15 26 19 IS 1 5 9 23 10 4 27 1 27 5 3 5 1 113 4 126 ,58 1 20 2 78 3 22S 75 396 1,276 8 624 |l,359 .aksalA 240 240 20 18S 19 243 262 98 .ocsicnarF naS 262 500 762 —. ,_ - 9 9 113 750 863 o 8 535 545 39 ! 98 39 198 215 1,605 7,183 21 11,760 1,803 19,179 -ilaC nrehtuoS .ainrof • ===== 7 7 .notgnihsaW 102 158 200 498 69S 40 130 170 94 94 132 19S 330 2,282 946 6 498 3,732 .olaffuB 149 149 105. 105 134 134 78 78 227 227 2,956 2 49" 3,007 1 .atokaD | — 67 IT .nagihciM 23 . 23 12 12 70 70 18 18 32 32 932 932 .ecnerwaL .tS 5,000 2,834 • 7,834 2,500 2,500 631 1,960 137 2,728 1,154 20 1,174 3,106 8,131 86,556 622 98,415 .tnomreV ... . """3" 3 .latoT 279 6,059 2,837 526 9,701 345 2,588 2 510 3,445 413 1,215 1,963 915 4,506 252 776 2,307 573 3,908 J518 1,154 493 21 198 1 2,384 J 7,486 3,108 25,938 104,257 16,969 157,758 1Includes $4,000 for Laredo, Tex, Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

AUGUST l, 1015. FEDERAL RESERVE BULLETIN. 239 Exports of gold, by customs districts, Jan. 1 to July 28, 1915. [In thousands of dollars.] Maine Du- H N a a n m e d w p- Y N o e r w k. Hawaii.Alaska. c F S i r s a a c n n o - . i W ng a t s o h n - . Buffalo.Dakota. M ig i a c n h . - l a S u n u t d h - r L e S n a t w c . e - . m V o e n r- t. Total. shire. perior* For week ending June 25. B ullion, refined, domestic 6 1 7 United States coin 3 1 4 Foreign coin 1,125 1 1,126 Total 1,128 7 ' 1 1 1,137 For week ending July 3. Ore find ba^e'bullion 27 27 Bullion refined domestic! 1 2 United States coin 17 3 3 23 Total 1 17 3 3 27 1 52 For week ending July 9. United States mint or assay office bars 1 1 Bullion refinpd domfistic i 1 United States coin 15 2 17 Total 15 2 I 1 19 For week ending July 16. United States coin r> 1 5 12 For week ending July SS. Ore and base'bullion United States mint or assay office 10 1 11 Bullion, refined: Domestic 2 3 1 6 Foreign io I 10 1 22 Foreign coin .1 Total 10 1 10 1 12 3 1 1 39 Jan. 1 to July SS. 166 1 167 United States mint or assay office 13 5 IS B U Fo u n r l i e l t D i e i o g d o n n m , S c e r t o e a s i f t t n i i e c n s e c d o ; in 2 3 2 , , 3 5 7 7 7 4 * 23 2 54 4 8 4 2 2 9 7 0 4 . 4 1 1 4 3 2 10 3 2 , ,5 5 8 0 2 3 6 3 0 7 Total 2 5,951 23 • 2 54 21S 51 4 5 1 15 10 6,336 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

240 FEDERAL EESEBVE BULLETIN. AUGUST 1,1915. ACCEPTANCES. Acceptances, by classes, held by the Federal reserve banks each week. Nonmember hanks' Member acceptances. Bate, a b c a c n e k p s t ' - P b r a i n v k a s t . e Total. ances. Trust State companies. banks. 1915. June 28 - $4,211,000 $4,801,000 $161,000 $9,173,000 4,342,000 5,267,000 161,000 9,770,000 July 12 4,231,000 4,618,000 161,000 9,010,000 July 19...., 4,356,000 4,367,000 $20,000 323,000 9,066,000 5,165,000 4,832,000 20,000 367,000 10,384,000 July 26 „ , Acceptances indorsed by member banks: Trust companies' acceptances, $176,000; private banks'acceptances, $20,000; total, $196,000. Distribution of acceptances held by Federal reserve banks according to schedules on hand July 20,1915, by classes of acceptors and sizes. To $5,000. O to v e $ r 1 0 5 , 5 0 , 0 0 0 0 . 0 O to v e $ r 2 $ 5 1 ,0 0 0 ,0 0 0 . 0 O to v e $ r 5 $ 0 2 ,0 5 0 ,0 0 0 . 0 O to v e $ r 1 0 $ 0 5 , 0 0 , 0 0 0 0 . 0 Over $100,000. Total. Class of acceptors. Per I! cent. Member banks... $134,690 58 $467,412 $921,845 32 $1,288,061 $956,285 $588,000 204 $4,356,293 48.0 Trust companies. 114,859 32 223,975 1,351,619 27 829,453 787,081 1,060,246 "" 4,367,233 48.2 State banks 20,000 20,000 ,2 Private banks— 19,890 201,845 101,065 322,800 3.6 Total. 249,549 92 136 2,495,309 2,218,579 1,743,366 1,648,246 421 9,066,326 Percent F 27.5 24.5 = 1 = 8 = .2 100.0 Amounts of acceptances held by the several Federal reserve banks at close of business on Fridays from June %5 to July 28,1915. Jin thousands of dollars.] Bos- New Phila- Cleve- Kich- At- Chi- St. Minne. Kan- San ton. York. delphia. land. mond. lanta. cago. Louis. apolis. sas Dallas. Fran- Total. City. cisco. Acceptances maturing within 30 days: June 25 , $959 $1,084 $213 $148 S364 $2S0 $126 $398 $574 54,746 July 2 739 1,714 452 155 237 261 120 411 260 4,349 July 9 603 1,249 466 101 236 218 49 331 224 3,477 July 1G 602 979 308 49 74 17 25 307 124 2,545 July 23... 588 740 371 48 74 18 34 208 124 2,205 Acceptances maturing after 30 days but within 60 days: June 25 582 928 403 124 2,427 July 2 470 955 173 191 160 2,127 July 9.... , 445 2,215 132 191 234 3,330 July 16 , 402 2,219 442 27 134 3,337 July 23 399 2,349 574 27 234 3,774 Acceptances maturing alter 60 days but within 90 days: Tota J J J J J l u u u u u : l l l n l y y y y e 9 2 2 1 2 3 6 5 »1,1 4 4 6 5 1 7 7 0 0 0 4 2 5 0 2 2 1 2 1 , , , , , 4 0 3 1 0 1 7 1 5 1 5 1 4 9 9 5 3 4 4 7 2 4 4 5 0 2 5 9 9 7 9 9 2 1 1 0 5 5 6 6 2 1 0 6 2 3 1 5 5 5 7 2 12 8 2 4 1 4 3 5 4 5 11 9 2 1 1 5 0 5 0 7 11 1 3 7 1 8 0 6 1 1 2 1 1 1 5 9 0 2 0 6 8 4 5 0 3 4 3 3 2 , , , , 6 7 3 3 2 8 4 S 5 0 9 4 6 9 6 . J J J J J u u u u u l l l n l y y y y e 9 2 1 2 2 3 6 5 " " " " 2 2 1 1 1 , , , , , 0 5 6 6 0 2 0 9 8 4 0 9 7 3 1 5 4 4 4 4 , , , , , G 1 8 6 8 0 3 3 2 1 3 5 1 8 3 1 1 1 1 , , , , 4 3 2 0 9 6 0 5 7 7 7 5 5 4 5 2 2 1 1 1 0 1 4 8 5 1 3 2 7 5 3 2 2 4 3 4 7 9 7 4 3 5 7 5 7 1 3 3 2 1 8 2 8 4 4 9 2 7 2 4 1 1 1 1 6 9 3 6 4 6 1 2 8 8 3 5 6 6 4 5 0 5 1 3 3 5 8 3 2 5 3 4 9 6 8 1 5 1 0 3 4 8 8 2 1 1 9 9 0 8 0 , , , , , 8 5 3 9 3 2 9 7 3 7 0 3 1 8 9 * Includes $90,500 of acceptances maturing after 90 days but within 3 months. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

AUGUST 1,1915. FEDEEAL KESEBVE BULLETIN. 241 Amounts of acceptances purchased by each of the Federal reserve banks from February 19 (date of first purchase) to June 30,1915, distributed by maturities. [La thousands of dollars.] Boston. Y N o e r w k. d P e h lp il h a i - a. C la le n v d e . - m R o ic n h d - . la A n t t - a. c C a h g i o - . Lo S u t. is. M ap i o n l n is e . - K C a i n ty sa . s Dallas. F c S i r s a a c n n o - . Total. Acceptances maturing within 30 February and March. 371 84 39 141 67 10 41 61 814 April .... 25 25 25 75 2 2 June 141 141 Total 539 109 64 141 67 10 41 61 1,032 Acceptances maturing after 30 days but within 60 davs: 135 197 249 508 27 47 152 1 315 April " .... 29 456 50 25 14 16 281 871 May 56 454 62 57 159 201 46 45 200 1 280 15 436 57 33 74 12 627 Total .... 235 1,543 368 598 310 226 119 61 633 4,093 Acceptances maturing after 60 days but within 3 months: 1,235 4,435 862 584 1 245 280 41 211 8 893 April 520 792 412 116 243 100 87 259 543 3 072 May. 587 411 109 16 18 13 307 124 1 5S5 June 557 2,507 493 16 . 36 44 17 27 234 3,931 Total 2,899 8,145 1,876 732 1,524 162 397 634 1,112 17,481 Grand total 3,134 10,227 2,353 1,394 1,975 455 526 736 1,806 22,60& PAPER CURRENCY OUTSTANDING, United States Treasurer's monthly statement of paper currency of each denomination outstanding June 30,1915. Denomination. Uni n te o d t e S s t . ates no T t r e e s a o s f u r 1 y 890.rese F r e v d e e n ra o l tes. ba N n a k t i n o o n t a e l s. cert G if o ic l a d tes. cert S if i i l c v a e t r es. Total. One dollar $1,819,540 $354,076 5342,317 $174,838,421 $177,354,354 Two dollars 1,363,613 225,319 163,568 59,748,881 61,501,381 Five dollars 202,123,160 543,885 $31,379,000 137,881,535 182,868,967 554,796,547 Ten dollars 107,957,996 f 633,490 28,054,060 354,680,300 $214,940,420 24 707,751 730,974,017 Twenty dollars.... 8,092,632 291,330 14,837,440 249,959,860 214,285,894 19,159,400 506,626,556 Fifty dollars 2,030,375 11,900 4,990,000 32,964,600 46,567,355 31,755,660 118,319,890 Onehundred dollars— 2,983,700 116,000 5,000,000 45,305,700 79,354,100 343,420 133,102,920 Five hundred dollars... 2,749,000 88,500 19,801,500 18,500 22,657,500 One thousand dollars.. 18,551,000 78,000 22,000 85,348,500 18,000 104,017,500 Five thousand dollars.. 95,885,000 95,885,000 Ten thousand dollars- 10,000 462,000,000 462,010,000 Fractional parts 54,143 54 143 Total 347,681,016 I 2,254,000 84,260,500 821,462,523 1,218,182,769 493,459,000 2,967,299,808 1,000,000 12,188,930 3,188,930 Unknown, destroyed.. Net., 346,681,016 2,254,000 84,260,500 819,273,593 1,218,182,769 493,459,000 2,964,110,878 i Redeemed but not assorted by denominations. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

242 FEDERAL KESERVE BULLETIK, AUGUST 1,1915. DISTRIBUTION OF REDISCOUNTS. The total amount of commercial paper re- 27 per cent of the total rediscounts handled in discounted during the month of June was May. 313,404,000, or SI,258,300 in excess of the The number of banks accommodated inamount rediscounted during May, all of the creased from 716 in May to 785 in June and now banks, except Dallas and San Francisco, re- stands at 10.3 per cent of the total number of porting increased operations. member banks. Over 76 per cent of the paper rediscounted The relative work of the discount departby the four eastern banks was 60-day paper ments is shown to some extent by the number of notes handled during each month, which is as against 32.5 per cent for the four western 9.55S for May and 10,734 for June. Of the total banks and 40 per cent for the three southern number of notes handled the share of the three banks. The San Francisco bank reports about southern banks was about 73 per cent in June 33 per cent of this class of paper. as against 78 per cent in May, while of the total Relatively large purchases by the Minneapamounts handled the share of the three southolis bank of agricultural and live-stock paper ern banks was about 66 per cent in June and maturing after 90 days raise the proportion over 68 per cent in May. of this class of paper to 3S.S per cent of The average size of the notes discounted in the total amount of rediscounts of the four June by all the banks was Si,249, compared western banks and decrease the proportion with $1,271 in the preceding month. The averof this class of paper reported by the three ages vary between $681 for the New York bank southern banks from about 75 per cent for and S3,043 for the San Francisco bank. Of the the month of May to 62.4 per cent for June. total number of notes rediscounted during June While the percentages of the several classes about 27 per cent, and of the total amount of paper handled by all the banks during June about 53 per cent, were notes in amounts of vary but slightly from the percentages for the $1,000 to S5,000. Small notes (in amounts up month of May, there are some quite material to §250) constituted almost 32 per cent of the changes in the liquidity of the paper purtotal number, though only 3.6 per cent of the chased by some of the banks. Thus, for examtotal amount of notes rediscounted during the ple, the percentage of 30-day paper discounted month. Over 84 per cent of the entire number by the Boston bank during the month of June of notes up to $250 was discounted by the three increased to 47 per cent of the total from only southern banks. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

.AUGUST 1,1915. FEDERAL RESERVE BULLETIN. 243 Commercial paper, exclusive of acceptances, rediscounted by each of the Federal reserve banks during the month of June, 1915, distributed by sizes. NUMBER OF PIECES AND AMOUNTS. [In thousands of dollars.] To $100. Ove 3 r 2 S 5 1 0 0 . 0 to Ove S r 5 S 0 2 0 5 . 0 to Ov 5 er 1 , $ 0 5 0 0 0 0 . to O t v o e 3 r 2 $ ,5 1 0 ,0 0 0 . 0 O to v e $ r 5 $ ,0 2 0 ,5 0 0 . 0 O to v e 5 r 1 0 $ , 5 0 , 0 0 0 0 . 0 31 O 0 v ,0 e 0 r 0. Total. Bank. If | Boston 25 11.3 29 20.1 21 34.6 147.3 OS. 5 65.6 120 347.4 2.0 New York 4.0 147 23.2 104] 37.3 57 39.7 41 58.1 94.7 32.5 425 289.5 2.1 Philadelphia.. .4 35 6.2: 67j 25.4 58 45.3 51 92.8 192.7 77.0 15.0 273 454.8 3.3 Cleveland .7 13 2.3! 201 7.5 29 23.6 40 69.1 162.8 8S.6 80.6 108 435.21 3.2 Richmond 32.2 559 97.4! 622 246.3 590 484.7 513 909.4 1,283.7 677.2 273.4 3,147 4,004.3 30.1 Atlanta 18.2 572 99.0: 475 177.8 319 249.6 291 511.0 719.4 328.0 255.0! 2,1352,358.0 17.6 Chicago .8 32 7.6 89 35.6 107 86.0 138 225.9 198.8 68.6 24.8 440 648.lt 4.8 St. Louis 1.1 63 11.4 69 26.1 56 45.5 75 135.6 103.8 67.2 10.2 311 400.91 3.0 Minneapolis... 1.0 93 16.1 1311 48.1 182 129.8 1661 243.4 166.4 137.6 52.6 687 795.0 5.9 Kansas City... .2 14 2.6! 27 10.3 40 29.3 39| 60.5 118.1 82.1 30.4 170 333.5J 2.5 Dallas 18.8 814 135.3 531 190.3 342 253.4 349 571.4 706.6 428.6 172.7 2,577 2,477.1! 18.5 San Francisco. 21 3.4 31 11.3 36.5 69 110.7 180.4 217. 294.7 281 SG0.2J 6.4 Total.... 1,069 77.4 2,363 404.5; 2,191 j 827.3 1,861 1,443.5 1,793 3,028.51,049 4,074.7 325 2,273.1 83 1,275.0 10,734 13,404.0| 100.0 PERCENTAGES OF AMOUNTSOF EACH CLASS TO TOTAL. To $100. $ O 1 $ 0 2 v 0 5 e 0 r t . o $ O $ 25 5 v 0 0 e 0 t r . o $ $ O 5 1 0 , v 0 0 e 0 t r 0 o . $ $ 1 O , 2 0 , v 0 5 e 0 0 r 0 t . o $ $ 2 O 5 ,5 , v 0 0 e 0 0 r 0 t . o $ $ 5 1 O , 0 0 v , 0 0 e 0 0 r 0 to . $1 O 0 v ,0 e 0 r 0. Total. Per cent. Per cent. Per cent. Per cent. Per cent. Per cent. Per cent. Per cent. Per cent. Boston 3 3 5.8 9.9 42.4 19.7 18.9 100.0 New York . 1.4 8 0 12 9 13.7 20.1 32.7 11 2 100.0 Philadelphia 1.4 5.6 9.9 20.4 42.4 17.0 3.3 100.0 Cleveland. ... .2 .5 1.7 5.4 15.9 37.4 20.4 18.5 100.0 Richmond .8 2.4 6.2 12.1 22.7 32.1 16.9 6.8 100.0 Atlanta .8 4.2 7.5 10.6 21.7 30.5 13.9 10.8 100.0 Chicago.. ... ...; .1 1.2 5.5 13.3 34.8 30.7 10.6 3.8 100.0 St. Louis .3 2.9 6.5 11.3 33.7 25.9 16.8 2.6 100.0 Minneapolis .1 2,0 6.1 16.3 30.7 20.9 17.3 6.6 100.0 KansasCity .1 .8 . 3.1 8.8 18.1 35.4 24.6 9.1 100.0 Dallas .8 5.5 7.6 10.2 23.1 28.5 17.3 7.0 100.0 .4 1.3 4.2 13.6 21.0 25.2 34.3 100.0 Total. ., .*. .6 3.0 6.2 10.7 22.6 30.4 17.0 9.5 100.0 Commercial paper rediscounted during June by each of the Federal reserve banks, distributed by States and maturities as of date of rediscount. [In thousands of dollars.] Paper Paper Districts and States. o N f b m u a m n e k m b s e b . r er a o N c d f c u a o b m t m a e b n d m e k . r o s - m w P i a d t t a h a u p y i r n e s i r . n 3 g 0 w m d a a i a f t y t t h e u s r i r n b i 3 n u 6 0 g t 0 w m d a a i a f t y t t h e s u i r b n r i 6 u n 9 0 g t 0 m a P a d ft a t a e u p y r r e s i 9 . r n 0 g d c p o is a m c T p o m o e u t r e a n r r l t c e e i - d a . l days. days. District No. 1—Boston: 74 2 10.7 18.3 13.4 42.4 70 1 8.9 4.8 2.9 16.6 170 5 141.6 70.5 10.0 222.1 New Hampshire 56 1 3.0 4.6 3.4 .4 11.4 18 0 Vermont 48 4 7.3 40.9 6.7 54.9 Total..... 436 13 162.6 143.2 38.3 3.3 347.4 District No. 2—New York 479 20 136.8 82.0 169.3 1.4 289.5 District No. 3—Philadelphia: 24 1 3.0 3.0 201 12 71.8 86.7 67.4 225.9 Pennsylvania 533 13 138.5 62.3 25.1 225.9 Total 758 26 210.3 149.0 95.5 454.8 - i Including 4.5 of paper, maturing within 10 days. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

244 FEDERAL BESEEVE BULLETIN. AUGUST 1,1915. Corrwiercial paper rediscount^ during June by each of the Federal reserve banks, distributed by States and maturities as of date of rediscount—Continued. [In thousands of dollars,] Paper Paper Districts and States. o N f b m u a m n e k m b s e b . r er a o N c d f c u a o b m t m a e b n d m e k . o r s - m w P i a d t t a a h u p y i r n e s i . r n 3 g 0 w m d a a i a f t y t t h e s u i r r n b i 3 n u 6 0 g t 0 w m d a a i a f t y t t h e u s i r r n b i 6 n 9 u 0 g 0 t m a P d a ft a t a e u p y r r e s i 9 . r n 0 g com T m ot e a r r i l c t e e i - a d l . days. days. District No. 4-Cleveland: Kentucky 72 58.7 87.9 16.7 163.3 Ohio 378 72.3 51.7 20.6 .3 144.9 Pennsylvania 301 52.0 56.7 12.2 5.0 125,9 9 .4 .7 1.1 West Virginia Total 760 37 183.0 196.7 50.2 5.3 435.2 District No, 5—Richmond: District of Columbia 13 35,2 123.2 50.4 208.8 Maryland 100 37,0 8.0 12.6 .5 58,1 North Carolina 80 88.9 357.1 661.1 85,1 1,192.2 South Carolina 71 302.8 463.5 526.1 252.4 1,544.8 Virginia • , 136 138,5 280.5 377.9 65.8 862.7 West Virginia , 108 35.5 62.2 39.2 .8 137.7 Total 508 102 637.9 1,294.5 1,667.3 404.6 4,004,3 District No. 6—Atlanta: Alabama 92 16.7 75.9 100.4 101.8 294.8 Florida 56 40.5 86.2 349.5 16.3 492.5 Georgia ..... 113 77.7 226.3 402.9 208.4 915.3 Louisiana 5 20.5 4.1 24,6 Mississippi 18 1.3 11.7 39.0 62.0 Tennessee , 97 42.8 325.3 196.8 13.9 578.8 Total 381 128 199.5 725.4 1,092,7 340,4 2,358.0 District No, 7—Chicago: Illinois 313 3.7 47.1 53.5 42.4 146.7 Indiana 197 9.1 34.1 52.6 17.5 113.3 Iowa , 348 26.4 68,5 100,1 167,0 362.0 Michigan 73 16.5 2.0 6.6 25.1 Wisconsin , 49 1.0 1.0 Total 57 55.7 151.7 212.8 227.9 648.1 District No. S-St. Louis: Arkansas 1.3 3.4 14,7 27.7 47,1 Illinois 156 14.1 27.8 50.5 30.2 122.6 Indiana 61 5.0 13.0 .8.3 26.3 Kentucky 69 8.1 12.7 6.3 27.1 Mississippi 17 3.0 11.6 14.6 Missouri.. 79 4.0 15.3 20.8 6.5 46.6 Tennessee 20 U9.8 41.1 55.7 116.6 Total '.. 462 41 52.3 113.3 159.3 76.0 400.9 District No. 9—Minneapolis: Michigan 31 12.5 23.2 3.0 38.7 Minnesota 277 2.5 13.4 149.9 165.8 Montana 65 4.9 47,1 72.6 125.5 North Dakota 153 .5 2.9 19.2 166.6 189.2 South Dakota 111 1.5 51.6 53.1 Wisconsin 87 32.1 70.3 103.1 17.2 222.7 Total , 724 46.0 103,8 187.3 457.9 795.0 District No. 10—Kansas City: Colorado , 122 5.1 2.1 4,5 2.1 13.8 Kansas , 216 2.5 30.5 25.5 28.3 86.8 Missouri 52 6.2 1.8 91.3 Nebraska 212 16,3 24.1 23.7 64.1 W N O e k y w l o a m h M o i m n ex g a i co , , 1 3 1 8 3 0 8 7.8 30.7 *ii.*4' 2 3 4 . . 2 4 7 3 4 . . 2 3 Total 38 21.6 162.9 Q5.5 83.5 333.5 District No. 11—Dallas: Arizona 6 T N O L e o e k x u w la a i s h s M i o a m n ex a a ico 5 1 3 2 2 6 7 8 5 3 13 1 4 8 6 3 2 3 7 . . , 3 4 8 4 5 1 4 7 2 7 8 9 . . . . 3 2 8 2 7 1 3 2 5 4 1 3 5 9 . . . . 5 5 2 1 6 3 6 4 7 3 3 3 6 . . . . 2 8 7 1 1,9 3 1 6 4 2 4 9 1 1 4 . . . . 6 8 2 5 Total 166 103,5 597.5 959.3 814.8 2,477.1 1 Including 5.0 of paper, maturing within 10 days. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

ADGDST 1, 1915. FEDERAL RESERVE BULLETIN. 245 Commercial paper rediscounted during June by each of the Federal reserve banks, distributed by States and maturities as o date of rediscount—Continued. [In thousands of dollars.] Paper Paper Districts and States. o N f b m u a m n e k m b s e b . r er a o N c f d c u o a b m m t a e b m n d e . k o r s - w m i P a d t t a a h u p y i r n e s i . r n 3 g 0 w m d a a i a f t y t t h e s u i r r n b i 3 n u 6 0 g t 0 w m d a a i a f t y t t h e s u r i r n b i 6 n u 9 0 g t 0 m a P a d ft t a a e u p y r r e s i 9 r . n 0 g d co i p s m a c T p o m o e u t r e a n r r l t c e e i - d a . l days. days. District No. 12—San Francisco: Alaska '. 1 7 California a. _.._ 265 39 65.4 124.5 404.5 64.1 658.5 57 6 9.3 8.9 15.6 33.8 Nevada ...... ... . ...... -. 10 86 9 5 7 22.0 40 6 2.6 70 9 Utah 23 1 6.0 25.5 15.3 46.8 Washington 7S 6 £4.0 2.0 20.4 3.8 50.2 Total . 527 61 101.1 183.3 489.7 86.1 860.2 BECAFtTULATlON. Districts: No. 1—Boston 436 13 162.6 143.2 38.3 3.3 347.4 No. 2—New York 479 20 36.8 82.0 169.3 1.4 289.5 No 3—Philadelphia . . 758 28 210 3 149.0 95 5 454 8 No. 4—Cleveland 760 37 183.0 196.7 50.2 5.3 435.2 No. 5—Richmond 508 102 637.9 1,294.5 1,667.3 404.6 4,004.3 No. 6—Atlanta.. 381 128 199.5 725.4 1,092.7 340.4 2,358.0 No. 7—Chicago ..;. 980 57 55.7 151.7 212.8 227.9 64a 1 No. 8—St. Louis .. 462 41 52.3 113.3 159.3 76.0 400.9 No* 9—Minneapolis . .... ... ........ 724 96 46.0 103.8 187.3 457.9 795.0 No 10—Kansas City . ... ... . 833 38 21. & 162.9 65.5 83.5 333.5 No 11—Dallas . ... 759 166 103.5 597.5 959.3 816.8 2,477.1 527 61 101.1 183.3 489.7 86.1 860.2 Total .. ... 7,607 785 1.810.3 3,903.3 5,187.2 2,503.2 13,404.0 10.3 13.5 29.1 38.7 • ML 7 100.0 Amounts of commercial paper held by each of the Federal reserve banks on the last Friday of the month of June, distributed by maturities. [In thousands of dollars.] Paper Paper Paper maturing maturing Paper Federal reserve bank. m w at i u th ri in ng 30 d a a f y te s r but60 d a a f y te s r but ma a t f u te r r ing Total. 30 days. within within 90 days. 60 days. 90 days. Boston 196.7 86.0 5.5 7.1 295.3 New York.... 215.5 212.9 109.4 2.6 540.4 Philadelphia.. 332.5 246.0 74.6 653.1 Cleveland 415.9 278.3 54.3 35.5 784.0 Richmond 2,952.9 2,417.5 1,300.1 707.4 7,377.9 Atlanta 1,693.9 1,249.7 827.7 628.5 4,399.8 Chicago 358.0 319.0 257.6 252.9 1,187.5 St. Louis 2S0.2 182.1 131.6 149.6 743.5 Minneapolis... 193.4 187.2 153.9 547.8 1,OS2.3 Kansas City... 207.7 171.7 95.5 135.8 610.7 Dallas 2,071.8 1,579.4 831.8 1,971.3 6,454.3 San Francisco. 670.6 712.5 302.8 181.7 1,867.6 Total... 9,589.1 7,642.3 4,144.8 4,620.2 25,996.4 Percent 36.9 29.4 15.9 17.8 100.0 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

246 RESOUHCES AND LIABILITIES. AUGUST l, 1015, Resources and liabilities of each of the Federal reserve banks and of the Federal reserve system at close of business on Fridays July 2 to July 23. [In thousands of dollars.] RESOURCES. Boston. Y N o e r w k. de P l h p i h la i - a. C la le n v d e . - m R o ic n h d - . la A n t t - a, Chicago. Lo S u t. is. M ap i o n l n is e . - K C a i n t s y a . s Dallas. F c S i r s a a c n n o - . sy T s f o o t t e r a m l . Gold coin and certificates in vault: July 2 $9,179 $126,989 $10,021 $13,361 $4,747 $3,706 S24.386 $8,091 $7,051 $6,649 $3,037 $8,151 $231,363 Julj-9 9,101 117,093 14,778 13,076 4,302 3,697 23,992 7,600 7,001 6,199 3,043 8,079 218,021 July 10 8,427 112,132 13,909 13,011 4,388 3,501 25,622 7,654 6,850 6,295 3,051 8,G32 213,472 July 23 8,644 113,001 13,241 12,966 4,431 3,529 25,974 7,650 6,652 6,299 2,763 8,897 214,047 Gold settlement fund: July 2 3,817 2,350 1,822 3.520 2,695 1,040 5,837 1,384 1,107 3,702 2,913 1,047 31,840 July9 0,474 5,846 1,459 3,633 3,259 1,447 13,968 1,384 1,317 3,539 3,162 1,618 47,106 Julylf, 7,041 7,125 1,384 4,351 3,434 1,511 10,271 1,256 1,235 3,697 3,756 1,019 40,680 July 23 7,707 10,151 1,671 4,256 3,212 1,304 9,329 1,657 1,187 3,611 3,993 367 48,450 Gold redemption fund: July 2 6 55 37 17 200 225 120 35 30 37 237 21 1,080 J J J u u u l l l y y y 2 9 1 3 6 si 5 5 5 5 5 5 3 3 3 7 7 7 1 1 1 7 7 7 2 2 3 6 7 0 5 5 0 2 2 2 2 2 2 5 5 5 120 3 3 3 5 5 5 3 3 3 0 0 0 3 3 3 7 7 7 2 3 2 9 1 6 8 3 8 2 2 2 1 1 1 1 1 lT , , 0 0 1 7 1 3 6 6 6 Legal tender notes, silver, etc.: July2 194 16,123 2,581 848 107 323 2,433 1,050 4 471 17 24,841 JulyO 430 12,710 2,473 856 100 190 3,560 990 4 472 11 22,494 July 10 171 17,001 2,953 974 111 207 2,431 974 4 490 565 11 20,492 July 23 170 16,301 3,027 1,024 130 340 2,989 846 4 493 568 21 25,913 Total reserve: July 2 13,196 145,523 20,461 17,746 7,809 5,894 32,776 10,560 8,192 10,859 6,877 9,236 289,129 JulyO 16,011 135,704 •18,747 17,582 7,932 5,559 41,640 10,009 8,352 10,247 •7,165 9,729 288,737 July 16 16,245 136,913 18,283 18,353 8,208 5,444 38,324 9,919 8,119 10,519 7,670 9,683 287,680 July 23 16,527 139,508 17,976 18,203 8,073 5,398 38,292 10,188 7,873 10,440 7,642 9,306 289,486 Commercial paper: July 2 430 515 577 757 7,311 4,540 1,223 804 1,163 021 6,521 1,845 20,367 July9 :., 414 629 560 703 7,565 4,522 1,340 874 1,423 866 6,222 1,966 27,0S4 Julylf* 403 593 775 095 8,050 4,757 1,477 1,487 985 0,624 1,925 28,669 July 23 585 727 8,313 4,745 1,537 1,506 1,104 6,629 1,936 29,085 Bank acceptances: July2 1,683 4,828 1,074 187 347 322 148 613 618 9,820 July9 1,520 4,835 1,305 142 297 287 91 558 5BS 9,593 July 16 1,609 4,013 1,255 155 275 144 132 405 383 8,971 July 23 2,097 5,103 1,467 201 348 166 353 414 10,338 United States bonds: July 2 194 535 3,725 242 1,025 930 1,001 7,052 July 9 340 035 3,725 242 1,025 930 1,001 7,898 July 16 340 GOO 3,725 242 1,025 930 1,001 7,923 July 23 340 660 3,725 242 1,025 930 1,001 7,923 Municipal warrants: July2 2,234 4,269 1,256 1,495 1,383 408 368 214 702 12,390 July9 2,292 4,630 1,480 1,594 1,628 518 445 332 976 13,895 July 10 2,297 4,936 1,571 1,556 1,690 568 445 342 986 14,391 July 23 2,404 5,160 1,631 1,539 1,770 620 496 454 15,110 Due from other Federal reserve banks, net: JJuii2y2 2,516 773 1,482 1,125 204 11,979 1,256 210 63 373 1,230 19,862 July 9 1,736 716 1,782 1,119 212 1,222 240 43 171 418 599 1 6,107 July 16 1,779 748 737 310 120 2,965 1,224 113 429 345 903 15,855 July 23 427 1,166 623 2,996 54 371 162 1,301 15,229 Federal reserve notes, net assets: July2 56$ 2,905 39 249 2,320 1,308 7,601 July9 443 3,807 71 215 2,333 87 100 1,323 8,379 July 16 430 5,474 53 288 2,351 98 79 1,180 9,953 July 23 453 4,584 58 2,353 107 183 1,181 9,227 All other resources: J J Ju u u l l l y y y 2 9 10 1 1 1 0 7 0 3 5 8 1 1 1 6 8 5 0 8 7 3 5 1 4 8 2 9 2 6 2 1 1 9 9 9 5 4 8 1 1 1 4 0 3 1 0 7 3 2 2 1 8 4 5 1 4 2 1 1 0 7 5 1 6 5 1 1 1, , , 8 8 4 6 7 8 1 0 2 52 5 5 6 5 2 1 0 0 6 2 3 6 3 8 9 • 8 6 6 0 1 7 3 3 4 , , , 0 6 4 9 0 3 4 0 0 July 23 301 161 696 341 158 77 142 2,194 535 22 81 4,765 Total resources: July2 20,730 153,260 24,500 22,045 16,346 10,942 53,954 15,585 11,247 13,826 13,794 16,061 300,481 JulyO 22,591 149,702 23,568 22,851 16,757 10,608 52,340 13,799 11,528 13,054 13,843 16,237 305,387 July 10 22,871 152,717 23,607 22.739 16,705 10,602 50,983 14.954 11,456 14,220 14,708 16,128 367.878 July23 22,150 155,101 23,322 23,177 17,167 10,523 51,163 14,476 11,360 14,187 14,445 16,256 371,163 * Items in transit, i. e., total amounts due from minus total amounts due to other Federal reserve banks. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

AUGUST 1,1915. EESOXIRCES AND LIABILITIES. 247 Resources and liabilities of each of the Federal reserve banks and of the Federal reserve system at close of business on Fridays, July 2 to July 28—Continued. [In thousands of dollars.] LIABILITIES. Boston. Y N o e r w k. d P el h p i h la i - a. C la le n v d e . - m R o ic n h d - . la A n t t - a. Chicago. Lo S u t. is. M ap i o n l n is e . - K C a i n t s y a . s Dallas. F c S i r s a a c n n o - . sy T s f o o t t e r a m l . Capital paid in: July2 34,778 $9,962 $6,225 $5,946 $3,365 $2,414 56,608 $2,788 $2,422 I $2,817 $2,869 $3,934 $54,12S July 9 4,778 10,536 5,652 5,951 3,360 2,415 6,608 2,788 2.422 I 2,8S5 2,7SG 3,923 54,104 J J u u l l y y 2 1 3 6... 4 4 , , 7 8 7 0 8 2 1 1 0 0 , , 5 8 5 1 9 2 5 5 , ,6 3 2 7 9 6 5 5 , , 9 9 5 5 1 1 3 3 , , 3 3 5 6 0 1 2 2, , 4 4 1 1 4 5 6 6 , , 6 6 1 1 0 0 2 2 , , 7 7 9 9 4 0 2 2 , .4 4 2 2 3 3 ! 2 2, , 9 9 3 4 7 6 2 2 , , 7 77 5 0 8 3 3,F9 9 2 2 3 3 5 54 4 , , 1 1 7 3 0 5 Reserve deposits, net: July 2 15,914 135,421' 18,275 7,885 5,590 47,3-16 12,797 S,S25 10,592 6,412 12,127 297,883 July 9 17,813 135,131 17,916 16,900 8,178 5,225 45,732 11,011 9,100 i 10,591 5,891 12,314 295iO July 16 18,093 136,630 17,978 16,788 7,896 5,249 44,373 12,164 9,033 11,003 6,204 12,205 297,010 July 23 17,063 141,409 17,946 17,226 7,950 5,219 44,553 11,463 8,937 10,901 0,003 12,333 301,063 Federal reserve notes, net liability: July 2 5,009 417 4,479 12,797 July 9 5,137 2,920 178 5,140 13,375 July 16 5,368 2,8S8 5,700 14,212 July23 5,757 2,837 340 5,587 14,521 Due to other Federal reserve banks, net: July 2 11,409 July 9 2,151 July 16 3,818 July 23 285 1,660 219 All other liabilities: July 2 38 1,468 46 34 1,673 July 9......... 1,944 48 26 2,100 July 16 1,710 50 34 1,SS5 July 23 1,220 53 37 1,409 Totaa J ll u 1l l i: y a b 2 i . l , ities: 20,730 158,260 24,500 22,645 16,346 10,942 53,954 15,585 11,247 13,826 13,794 16,061 366,481 Julv 9-. 22,591 149,762 23,56S 22,851 16,757 10,60S 52,3-10 13,799 11,528 13,654 13,843 16,237 365,387 July 16. 22,871 152,717 23,607 22,739 16,705 10,602 50,9S3 14,954 11,456 14,226 14,703 16,128 307,S7h July 23. 22,150 155,lni 23,322 23,177 17,167 10,523 51,163 14,476 11,360 14,187 14,445 16,256 371,163 CIRCULATION OF FEDERAL RESERVE NOTES. Federal reserve notes issued to the banks: July 2 S3,920 $40,500 S2,420 $4,200 $.7,750 $5,150 $4,380 $626 $3,300 $3,600 $6,695 $2,040 SS4,5S1 July 9 3 920 42,900 2,500 4,500 8 050 5,300 4,380 626 3,500 4,100 7,315 2,010 89,131 July 16 * 4 420 45,320 2,660 4,600 8,200 5,500 4,3S0 626 3,600 4,100 7,915 2,040 93,361 July 23 4,420 45,320 2,730 4,700 8,300 5,500 4,380 626 3,800 4,100 8,215 2,040 94,131 Federal reserve notes in the hands of the banks: July 2 568 3,145 39 249 191 30S 2,320 63 SO 223 266 l,30S 8,760 July 9 443 3,987 71 215 163 430 2,333 87 100 512 225 1,323 9,8*9 July 16 430 5,674 53 288 132 4C2 2,351 9S 79 401 265 1,180 ll,41ti July 23 453 4,784 58 308 243 513 2,353 107 183 350 178 1,181 10,711 Federal reserve notes in •• cir J c u u ly la 2 tion: 3 352 37,355 2,381 3,951 7,559 4,842 2,060 563 3,211 3,377 6,429 732 75,812 July 9.. 3,477 38,913 2,429 4,285 7;8S7 4,870 2,047 539 3,400 3,5S8 7,090 717 79,242 July 16 3 990 39,646 2,607 4,312 8,06S 5,038 2,029 528 3,521 3,696 7,650 SGO 81,945 July 23 3 967 40,536 2,672 4,392 8,057 4,987 2,027 519 3,617 3,750 8,037 859 83,420 Gold and lawful money deposited with F. R. agents: July 2.... 3,920 40,320 2,420 4,200 2,550 1,950 4,3S0 626 3,300 2,960 1,950 2,040 70,616 July9................ 3,920 42,720 2,500 4,500 2,750 1 850 4,380 026 3,500 3,410 1,950 2,040 74,246 July 16 .; 4,420 45,120 2,660 4,600 2,700 2,150 4,3S0 626 3,600 3,410 1,050 2,040 77,650 July 23 4,420 45,120 2,730 4,700 2,300 2,150 4,380 C26 3,800 3,410 2,450 2,040 78,120 Carried to net liabilities: July 2 5,009 2,892 417 4,479 12,797 July 9 5,137 2,920 178 5,140 13,375 July 16 5,36S 2,SS8 14 9.1 •> July 23 5,757 2,837 340 5,587 14,521 Carried to net assets: J J u ll l l v y 9 2 5 4 6 4 8 3 2 3, , 8 9 0 6 7 5 3 7 9 1 2 2 4 1 9 5 2 2 , , 3 3 2 3 0 3 6 8 3 7 1 8 0 9 0 1 1 , , 3 3 0 2 8 3 7 8 , ,3 6 7 01 9 July 16 430 5,474 53 2SS 2,351 . 9S 79 1 1 Qn Q Q^T July 23 453 4,584 5S 308 2,353 107 183 1,181 9,227 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

248 FEDERAL RESERVE AGENTS ACCOUNTS, AUGUST lt 1915. Statement of Federal reserve agents1 accounts at close of business Fridays, July 2 to July 23, (In thousands of dollars.) Boston. Y N o e r w k. d P el h p i h la i - a, C la le n v d e . - m R o ic n h d - . la A n t t - a. Chicago. Lo S u t. is, M ap i o n l n i e s. - K C a i n t s y a . s Dallas. F c S i r s a a c n n o - . Total. Federal reserve notes received from the Comptroller: July 2 $11,000 $45,040 So,360 $6,000 $8,420 $8,500 $9,260 §3,400 $4,000 $6,000 $9,300 $3,600 $H9,8S0 July 9 11,800 47,810 5,360 6,000 9,160 8,500 9,260 3,400 4,000 6,000 9,295 3,600 124,215 SS&::: 1 1 1 1 , , 8 8 0 0 0 0 4 47 9 , , 8 $ 4 4 0 0 5 5 , , 3 3 4 4 0 0 6 6 , , 4 40 0 0 0 9 9 , , 1 1 6 6 0 0 8 S , , 5 5 0 0 0 0 9 9, , 2 2 6 6 0 0 3 3, , 4 4 0 0 0 0 4 5, , 0 0 0 0 0 0 6 6 , ,0 0 0 0 0 0 9 9 , ,7 7 7 7 5 5 1 3 0 , ,0 6 0 0 0 0 1 1 3 2 4 5 , , 4 07 7 5 5 Federal reserve notes returned to the Comptroller: July 2 5 July 9 '• 20 20 July 16 July 23 Amount of Federal reservo notes chargeable to J J F u u e l l d y y e r 9 2 al reserve agent: 1 n 1 ,8 ,0 o 0 o 0 4 4 7 5 , , 8 0 4 4 0 0 5 5 , , 3 3 4 6 0 0 6 6, , 0 0 0 0 0 0 9 8 , , 1 4 6 2 0 0 8 S , , 5 5 0 0 0 0 9 9 , , 2 2 6 6 0 0 3 3 , , 4 4 0 0 0 0 4 4, , 0 0 0 0 0 0 6 6 , , 0 0 0 0 0 0 9 9 , , 2 2 9 9 5 5 3 3 , , 6 6 0 0 0 0 1 12 1 4 9 , , 1 8 9 7 5 5 J J u u l l y y 2 1 3 6 1 1 1 1 , , 8 8 0 0 0 0 4 4 9 7, , S 84 4 0 0 5 5, , 3 3 1 4 0 0 6 6, , 4 4 0 0 0 0 9 9 , , 1 1 6 6 0 0 8 8 , , 5 5 0 0 0 0 9 9 , , 2 2 6 6 0 0 3 3, , 4 4 0 0 0 0 4 5, , 0 0 0 0 0 0 6 6 , , 0 00 0 0 0 9 9 , ,7 7 7 7 5 5 1 3 0 , , 6 0 0 0 0 0 1 1 3 2 4 5 , , 4 07 4 5 5 Federal reserve notes in hands of agent at close of business Friday- July 2..., 7,080 4,540 2,940 1,800 670 5,150 4,880 2,774 700 2,400 2,600 1,560 37,094 July 9 7,8S0 4 940 2,840 1,500 1.110 3,200 4,880 2,774 500 1,900 1,980 1,560 35,064 July 16 7,3S0 2,520 2,680 1,800 960 3,000 4,880 2,774 400 1,900 1,860 1,560 31,714 July 23 ... 7,380 4,520 2,580 1,700 3,000 4,880 2,774 1,200 1,900 1,560 7,960 40,314 Federal reserve notes issued to Federal reserve bant, less notes returned to agent for redemption and cancellation: July 2 3,920 40,500 2,420 4,200 7,750 3,350 4,3S0 3,300 3,600 6,695 2,040 82,781 July 9 3,920 42,900 2,500 4,500 8,050 5,300 4,380 626 3,500 4,100 7,315 2,040 89,131 Julyie 4,420 45,320 2,660 4,600 8,200 5,500 4,380 626 3,600 4,100 7,915 2,040 93,361 July 23 4,420 45,320 2,730 4,700 8,300 5,500 4,380 626 3,800 4,100 8,215 2,040 94,131 Held by Federal reserve agent in reduction of liability on outstanding notes: Gold coin, and certificates— July 2 3,920 40,320 • 2,420 4,200 2,550 1,950 4,380 626 3,300 2,960 1,950 2,040 70,616 July 9 3,920 42,720 2,500 4,500 2,750 1 950 4,380 626 3,500 3,410 1,950 2,040 74,246 July 16 4,420 45,120 2,660 4,600 2,700 2,150 54,260 626 3,600 3,410 1,950 2,040 77,536 July 23 4,420 45,120 2,730 4,700 2,300 2,150 24,260 626 3,800 3,410 2,450 2,040 78,006 Lawful money- July 2 July 9 July 16 July 23 As security for outstanding notes: Commercial paper i— July 2 180 5,200 1,400 640 4,745 12,165 July 9 180 5,300 3,350 690 5,365 14,885 July 16 200 5,500 3,350 5,965 15,705 July 23 200 6,000 3,350 5,765 16,005 Total— July 2... 3,920 40,500 2,420 4,200 7,750 3,350 4,380 626 3,300 3,600 6,695 2,040 82,781 July 9... 3,920 42,900 2,500 4,500 8,050 5,300 4,380 626 3,500 4,100 7,315 2,040 89,131 July 16.. 4,420 45,320 2,600 4,600 8,200 5,500 *4,260 626 3,600 4,100 7,915 2,040 93,241 July 23.. 4,420 45,320 2r730 4,700 8,300 5,500 M,260 626 3,800 4,100 8,215 2,040 94,011 i Amount of commercial paper turned over to the Federal reserve agent: July 2 180 5,202 3,203 640 5,867 15,092 July 9 ISO 5,302 3,355 690 5,598 15,125 July 16 200 5,502 3,351 690 6,182 15,925 July 23 •..., 200 6,095 3,350 5,985 16,321 2 Exclusive of $120,000 in the gold redemption fund with the Treasurer of the United States. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

INDEX. Page. Page, Acceptances 240-241 Intradiatrict clearance system, establishment of. 192-210 Address by Mr. John Perrin, of Federal Reserve Law department 218-224 Bank of San Francisco 186-188 Right of State banks and trust companies to Address by Mr. D. 0. Wills, of Federal Reserve subscribe for stock.., 218 Bank of Cleveland 188-192 Surrender of stock by a member bank reduc- Business conditions, general 228-235 ing its surplus 218 Circulars and regulations 215-217 Rediscount of drafts payable on condition 219 Regulation O—Issuance and redemption of Payment of dividends by Federal reserve Federal reserve notes 214-215 banks 220 Circular 16—Trade acceptances 216 Interpretation of Regulation F 221 Clayton Act, interpretation of 221 Interpretation of the Clayton Act 222 Conference of bank examiners 217 Movement of principal assets and liabilities of Cotton situation 180-182 Federal reserve banks 233-235 Discount rates in effect 214 Paper currency outstanding 241 Earnings and expenditures of Federal reserve Rediscounts, distribution of 242-245 banks 176-179 Resources. and liabilities of Federal reserve Federal reserve agents* accounts, statement of 248 banks 246-247 Gold imports and exports 236-239 State bank membership in Federal reserve system. 182 Gold settlement fund 183-185 Trustee powers, applications for, approved 214 Government bonds, purchase of 217 Work of the Federal Reserve Board 175 Informal rulings of the Board 211-213 o Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis