Federal Reserve Bulletin, 1916-02
FEDERAL RESERVE BULLETIN ISSUED BY THE FEDERAL RESERVE BOARD AT WASHINGTON FEBRUARY, 1916 WASHINGTON GOVERNMENT PRINTING OFFICE 1916 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, PAUL M. WARBURG. Secretary of the Treasury, W. P. G. HARDING. Chairman. ADOLPH 0. MILLER. JOHN SKELTON WILLIAMS, Comptroller of the Currency. H. PARKER WILLIS, Secretary. SHERMAN ALLEN, AssistantlSecretary. M. 0. ELLIOTT, Counsel. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
SUBSCRIPTION PRICE OF BULLETIN. The Federal Reserve Bulletin is distributed without charge to member banks of the system and to the officers and directors of Federal Reserve Banks. In sending the Bulletin to others the Board feels that a subscription should be required. It has accordingly fixed a subscription price of $2 per annum. Single copies will be sold at 20 cents. Foreign postage should be added when it will be required. Remittances should be made to the Federal Reserve Board. Member banks desiring to have the Bulletin supplied to their directors may have it sent to not less than ten names at a subscription price of $1 per year. in Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
TABLE OF CONTENTS. Page. Work of the Board, . 51 Class 0 directors appointed : 52 Meeting of governors of Federal Reserve Banks.. ... 52 Bound copies of Bulletin 53 Settlement of clearing-house balances 53 Receipts and disbursements of Federal Reserve Board 54 Earnings and expenses of Federal Reserve Banks 56 Gold-settlement fund ,... 60 Informal rulings of the Federal Reserve Board 64 Agricultural-implement paper 67 Forms for reporting earnings and expenses 68 Table showing holidays in reserve-bank cities 68 Fiduciary poweis granted •„ .• 70 Intradistrict clearing system, additions to and withdrawals from ... 70 Law department. 71 Business conditions throughout the 12 Federal Reserve Districts 75 Distribution of discounts 86 Acceptances. 91 Federal Reserve Bank statements 93 Gold imports and exports 96 Capital and reserve deposits 98 IV Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
FEDERAL RESERVE BULLETIN VOL. 2 FEBRUARY 1, 1916 No. 2 WORK OF THE BOARD. has voted that it will annually consider and confirm the salaries of national bank exam- During the month of January the Federal iners, making report of the same to Congress Reserve Board has continued the preparation each year, under the terms of the Federal of its annual report to Congress, and has com- Reserve Act, such determination being conpiled full data regarding the work of the several sidered to be a compliance with the spirit of Federal Reserve Banks during the past year. the law regarding the examination staff. These data will be embodied in appendices supplementary to the annual report, which is As a result of the resolutions passed by the now practically ready for publication. Board during the month of January, changes have occurred in the Federal Advisory Council, Selection of additional class C directors, in the Governors of Federal Reserve Banks who order to complete the directorates of the sevwere formerly members of that body having eral banks, has also been necessary, there being been replaced by other representatives elected a number of vacancies not filled at the close of by their respective boards of directors. In December, some having also occurred since that addition to the changes thus necessitated, one date. The directorates are now complete for or two other changes of personnel have also the year 1916, except in so far as future vacanoccurred in the Advisory Council. Due to the cies not now foreseen may occur. Elsewhere delay incidental to effecting these changes and in this issue is furnished a complete list of giving the usual notice thereof, the Advisory the new class C directors. It has been de- Council determined to defer its regular statutermined that henceforward Federal Reserve Agents and deputy Federal Reserve Agents tory meeting, which would otherwise have shall be designated as such from year to year, occurred on January 19, until February 15. their terms as directors being three years under During the past month many inquiries have the statute, but their designation in their offi- been received with respect to the question of cial capacity being made from year to year, refunding outstanding United States 2 per cent thereby affording greater flexibility and lati- bonds bearing the circulation privilege into 3 tude, and securing more effective service in per cent bonds. Numerous applications have cases where vacancies occur before the expira- been received from member banks desirous of tion of a given term. In the same way it has converting at par under the $25,000,000 limit been arranged that Federal Reserve Banks shall provided under section 18 of the Federal Reannually submit to the Board schedules of their serve Act, while Federal Reserve Banks have staffs and salaries for approval, thereby placing presented plans for the exchange and steady members of such staffs practically upon a basis conversion of the bonds in question. The fact of appointment for terms not to exceed one that the subject had thus presented itself in year. The understanding is that within the practical form led to a reopening of the matyear's period thus fixed the officers and em- ter, and the Treasury Department has for the ployees of the banks shall hold office subject to past few weeks given detailed legal and finanthe pleasure of the several boards of directors, cial investigation to the whole problem. The but that the confirmation of the staffs, with situation has also been carefully discussed by their salaries, by the Federal Reserve Board, the Board itself, and it is expected that within shall occur annually. This, of course, would a very short time the details of the policy to be be a pro forma matter so far as regards the pursued in regard to this refunding, both in so ordinary routine or administrative appoint- far as affects the Treasury Department and the ments. Paralleling this decision, the Board Board as well, will be made known. 51 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
52 FEDERAL RESERVE BULLETIN. . FEBRUARY 1, 1916. A conference with tlie Governors of Federal Governors of Banks Meet. Reserve Banks was held in Washington on Jan- Governors of Federal Reserve Banks gathuary 20, the purpose of the conference being ered in Washington for the exchange of ideas discussion of various phases of administration and discussion of problems of operation on on which joint and harmonious action appeared January 19 and remained during the 20th to be demanded. and 21st. The trend of the discussion is indicated in the following press notice, which Class C Directors Appointed. was issued by the Governors on Saturday, January 22: Following is a list of Class C directors named The Sixth Conference of the Governors of the by the Federal Reserve Board to fill vacancies Federal Reserve Banks was held at the Shorecaused by expiration of term of office, resigham Hotel, Washington, D. C, January 19 to nations/etc.: 21, inclusive. The following Governors were Boston.—Allen Hollis. present: Benjamin Strong, jr., Federal Reserve New York.—George Foster Peabody. Designated as Bank of New York; J. B. McDougal, Federal Deputy Federal Reserve Agent, in place of Charles Reserve Bank of Chicago; A. L. Aiken, Federal Starek, disqualified because a national bank examiner. Reserve Bank of Boston; C. J. Rhdads, Federal Mr. Starek continues as a Class C director. Reserve Bank of Philadelphia; A. C. Eains, Philadelphia.—Vance C. McCormick. Geo. W. Norris Federal Reserve Bank of San Francisco; Geo. designated as Deputy Federal Reserve Agent, vice George J. Seay, Federal Reserve Bank of Richmond; La Monte, resigned. R. L. Van Zandt, Federal Reserye Bank ol Cleveland,—H. P, Wolfe. Dallas; E. R. Fancher, Federal Reserve Bank Richmond.—M. F. EL Gouverneur. of Cleveland; Theo. Wold, Federal Reserve Bank of Minneapolis; J. C. McCord, Federal Atlanta.—Edward T. Brown. Chicago.—E. T. Meredith. Reserve Bank of Atlanta; Roilo Wells, Federal St. Louis.—William McC. Martin. Reserve Bank of St. Louis; J.Z. Miller, Fed- :Minneapolis.—William Hi Lightner. Designated as eral Reserve Bank of Kansas City; J. F. Curtis, Deputy Federal Reserve Agent, vice P.M. Kerst, whose counsel, Federal Reserve Bank of New York. term expired December 31, 1915. Conferences were held with the Federal Re- Kansas City.—R. H. Malone, F. W. Fleming. Mr. serve Board and with the Federal legislative Fleming was designated as Deputy Federal Reserve committee and the executive committee of the Agent, vice A. E. Ramsey, resigned. In this district J, Z. National Bank Section of the American Bank- Miller, formerly Federal Reserve Agent, was named as ers7 Association, but no action was taken upon Governor, and Charles M. Sawyer, formerly Governor, any of the subjects submitted for discussion was named as Federal Reserve Agent. by the committees of the American Bankers' Dallas.—William F. Ramsey. Designated as Federal Association, this conference having been ar- Reserve Agent, vice E. O. Tenison, resigned. ranged for an exchange of views upon matters Qan Francisco.—Walton Moore. Appointed to succeed relating to the development of the Federal Charles E. Peabody, resigned. Designated as Deputy Reserve System. Federal Reserve Agent, in place of Claud Gatch, dis- Among the topics discussed at the meeting of qualified because a national bank examiner. Mr. Gatch Governors were the following: Collections and continues as a Class C director. clearances; fiscal agency functions for the United States Government and the details of accounting, etc., in that connection; open- Bulletin to Bank Directors. market operations, including a discussion of domestic acceptances, "trade acceptances, and Considerati6n has been given to a request Government bonds; the gold settlement fund, that the Bulletin be supplied to all directors including methods of accounting, audit, and of member banks. It is found that this would transfers; methods of accounting, including increase the cost to an extent not felt to be method of calculating dividend payments; stawarranted. Member banks which desire to tistics; reserves of member banks; issues of Federal Reserve notes; Government bond purhave the Bulletin supplied to their directors chases and conversions. will, however, be given a rate of $1 per year The meeting adjourned, subject to call, withfor lists of not less than 10 names forwarded out setting any time or place for holding the at the same tiine. next meeting. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
FEBRUARY 1, 1916. FEDEBAL BESEBVE BULLETIN. 53 Bound Copies of Bulletin. has been received by the Board from the Federal Reserve Banks: Many inquiries have been received by tlie Federal Reserve Board for bound copies of the District No. 1, Boston—Daniel G. Wing, Boston, Mass. District No. 2, New York—J. P. Morgan, New York Federal Reserve Bulletin for 1915. The Board City. is^not in a position to supply these volumes. District No. 3, Philadelphia—Levi L. Rue, Philadel- Itptias had a very few copies bound, but only a phia, Pa. sufficient number for the use of the members of District No. 4, Cleveland—W. S. Rowe, Cincinnati, the|Board and its officers in Washington. Ohio. District No. 5, Richmond—J. W. Norwood, Greenville, The June number of the Bulletin is prac- S. C. tically exhausted. Copies of the June number District No. 6, Atlanta—Charles A. Lyerly, Chattashould be carefully preserved. nooga, Tenn. District No. 7, Chicago—J. B. Porgan, Chicago, 111. District No. 9, Minneapolis—C. T. Jaffray, Minneapolis, Clearing-House Balances. Minn. District No. 10, Kansas City—E. F. Swinney, Kansas This^memorandum on the settlement of clear- City, Mo. ing-house balances was submitted to the Fed- District No. 11, Dallas—T. J. Record, Paris, Tex. eral Reserve Board on January 4 and was District No. 12, San Francisco—Herbert Fleishhacker, approved: San Francisco, Cal. With one exception Federal Reserve Banks Subscriptions to Bulletin* have the privilege of presenting items for pay- A few days ago the Federal Reserve Board ment through the local clearing house. In each city daily clearings are made and the rules call received a check for $38 from the president of for a daily settlement of debit balances. In a leading trust and savings bank in the Middle some Federal Reserve cities, however, as a West, with the request that the Federal Rematter of practice, daily settlements are hot serve Bulletin be sent for one year to 19 busiinsisted upon, but are a matter of arrangement ness men of his acquaintance. In requesting between the debtor and creditor banks. A Federal Reserve Bank should not be a party to that the subscriptions be entered, the writer deferred settlements. If a member bank re- gave as his reason for sending the subscriptions quires a temporary advance, a means is provided that he was impressed with the value of the through the rediscount privilege. Bulletin to all business men who are interested It is respectfully recommended that the Fedin keeping abreast of business and financial eral Reserve Banks be advised that, in the opinion of the Federal Reserve Board, debit balances conditions. arising out of transactions with clearing-house members should be settled daily, either in cash, Statement for the Press. by credit on the books of the Federal Reserve There have been sent to the Federal Reserve Bank, or in exchange acceptable to the creditor Board from Federal Reserve Banks and bank. Balances due to the Federal Reserve various member banks of the system copies of Bank should be settled daily, either in cash, by an anonymous circular which is being sent out debit on the books of the Federal Reserve Bank, from Philadelphia to member banks of the or in acceptable exchange on other cities. Cer- Federal Reserve System, headed " Failure to tificates of indebtedness issued by the manager comply with regulations." of a clearing house, or cashiers7 checks which The circular quotes the last paragraph of are given in exchange thereof, should be pre- section 9 of the Act which permits the Federal sented for payment and settled for on the day Reserve Board to require the surrender of of issue. stock and return cash-paid subscriptions with interest* Members of Advisory Council. The Federal Reserve Board has not sent out this circular and has no knowledge of its source. There is given below a list of members of the It appears to be the intent of those issuing it Federal Advisory Council of the Federal Re- to create prejudice against the Federal Reserve serve Board, notice of the election of whom Act and the Federal Reserve Board. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
54 FEDERAL RESERVE BULLETIN. FEBRUARY 1, 1916. RECEIPTS AND DISBURSEMENTS OF FED- either by the Board or the Committee on ERAL RESERVE BOARD. Budget and Expenditures and the secretary of the Board. There is here given a detailed account of RECEIPTS. receipts and expenditures by the Federal Unexpended balance Jan. 1,1915. $139,169.80 Reserve Board. The expenses of the Reserve Second assessment (made July 1, 1915) 108,283.64 Bank Organization Committee were paid from Reimbursements..' 528.07 an appropriation of $100,000 made by Congress. Bulletin, subscriptions to 521.84 Of this appropriation there is a balance of Total available.... 248,503.35 $17,708.15 unexpended. * Under the Federal Reserve Act the Federal DISBURSEMENTS. Reserve Board is authorized to make semi- By Governor of Board (Jan. 1 to Feb. 12,1915). 18,478.26 By fiscal agent (Feb. 13 to Dec. 31,1915).... 172,731.19 annual assessments upon Federal Reserve Auditors' settlements by transfer (Jan. 1 to Banks to cover its expenses. The first assess- Dec. 31,1915).. 20,004.13 ment for this purpose was made on November Total disbursements 211,213.58 2, 1914. Balances on hand Dec. 31, 1915, with Treas- Disbursements for the Board were, until Feburer of United States to credit of— ruary 12, 1915, made by the Governor of the Fiscal agent $12,268.81 Board, on which date the moneys of the Board Federal Reserve Board 25,020.96 were deposited in the Treasury of the United — 37,289.77 States to the credit of a special fund, a bonded 248,503.35 fiscal agent having been appointed by the GENERAL STATEMENT. Board and authorized to make collections and First assessment, including $239,871.10 for disbursements. Federal Reserve notes, made Nov. 2,1914. 431,768.40 Overpayments first, assessment 106.43 The funds of the Board are carried in a special account with the Treasurer of the 431,874.83 Amount assessed for Federal Reserve notes.. 239,871.10 United States and transfers are made by the Governor of the Board to the credit of the fiscal To credit of general expenses (including agent as necessary. The accounts of the Board $106.34 overpayment) 192,003. 73 Total disbursements to Jan. 1,1915 52,833. 93 pass through the hands of the Auditor for the State and other departments and are given the Unexpended balance Jan. 1», 1916 139,169.80 official examination required by the Govern- To credit general expenses, 1914 192,003. 73 ment. The term "auditor's settlement by Total commitments to Dec. 31, 1914 62,498.08 transfer" under '"DisbursementsJ? covers settlements made by transfers of credit authorized Unencumbered balance Jan. 1, 1915.. 129,505.65 and directed by the auditor on the books of the Unexpended balance Jan. 1, 1915 139,169.80 Treasury Department. It is used by the Unencumbered balance Jan, 1, 1915 129,505. 65 Federal Reserve Board largely in connection Unpaid commitments Jan. 1,1915 9,664.15 with payments to the Bureau jof Engraving Available funds during 1915 as per statement. 248,503.35 and Printing for the preparation of Federal Unpaid commitments Jan, 1,1915 $9,664.15 Reserve notes. The term "commitments" Commitments during 1915 207,722. 71 where used covers all obligations entered into 217,386.86 by the Board. Unencumbered balance Dec. 31,1915. 31,116.49 Telegrams paid for by the Federal Reserve Unpaid commitments Dec. 31, 1915 (esti- Board are billed at the Government rate. All mated) 6,173.28 payments for the Board are first approved Unexpended balance Dec 31,1915... 37,289.77 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
Detailed statement of expenses. 1915 To and including Dec. 31, 1914. January. February. March. April. May. June. July. August. September. October. November. December. y T e o a t r a 1 l 9 f 1 o 5 r . Personal services—Salaries: Board and its clerks....... $29,765.00 $7,449.98 $7,361.64 $7,333.32 $7,333.31 $7,333.31 $7,333.32 $7,333.31 $7,333.31 $7,333.32 $7,333.31 $7,333.31 $7,333.31 $88,144.75 Secretary's office1 6,641.09 2,563.87 2,472.92 2,468.32 2,388.32 2,338.32 2,312.77 2,318.32 2,318.32 2,359.98 2,406.15 2,337.21 2,323.32 28,607.82 Counsel's office 1,868.33 975.00 1,058.33 1,158.33 1,158.33 1,519.44 1,574.99 1,715.82 1,950.00 1,908.34 1,866.66 1,866.66 1,866.67 18,618.57 Division of audit and examination 1,635.01 1,183.33 1,183.33 1,183.33 976.65 1,128.33 1,133.33 1,164.16 1,164.16 1,464.16 1,426.16 1,404.16 1,404.16 14,815.26 Division of reports and statistics. 602.22 476.66 605.28 597.50 596.66 541.66 558.33 610.83 633.33 633.33 633.33 608.33 633.33 7,128.57 Division of issue 3,027.87 1,613.68 1,130.01 1,293.36 1,739.31 1,872.66 1,837.68 651.66 651.66 651.66 616.66 651.66 651.66 13,361.66 Telephone operator 93.33 50.00 50.00 50.00 50.00 50.00 50.00 50.00 50.00 50.00 50.00 50.00 50.00 600.00 Messengers 788.30 405.00 375.00 355.00 355.00 355.00 355.00 425.00 425.00 425.00 440.00 375.00 315.00 4,605.00 Charwomen.. 117.99 60.00 60.00 60.00 60.00 60.00 60.00 60.00 60.00 60.00 60.00 60.00 60.00 720.00 3 44,539.14 14,777.52 14,296.51 14,499.16 14,657.58 15,198.72 15,215.42 14,329.10 14,585.78 14,885.79 14,832.27 14,686.33 14,637.45 176,601.63 Nonpersonal services—Transportation and subsistence of persons: Board and its clerks 86.80 12.00 54.10 288.62 410.37 46.59 97.44 215.00 223.75 308.40 1,656.27 Secretary's office i. 13.80 28.00 41.80 Division of audit and examina- w tion 287.70 349.32 538.77 346.42 1,157.11 150.90 21.80 828.61 116.80 588.69 671.99 581.34 5,351.75 tei Counsel's office 27.22 14.90 11.70 53.82 1 Messengers (car fare) 5.00 5.00 '"h'.QO *"*5.'66' 5.00 5.00 25.00 Transportation of things 1.49 1.72 .24 2.65 Communication service: Telephone 709.59 45.08 69.48 36.61 58.80 67.46 62.50 57.69 81.15 44.52 2 43.00 2 40.00 2 40.00 646.29 Telegraph 1,201.61 140.66 239.31 226.42 300.33 277.20 311.23 253.71 2 250.00 2 250.00 2 250.00 2 250.00 2 250.00 2,998.86 Postage 51.00 23.50 27.50 55.00 20.00 20.00 30.00 176.00 Printing, binding, etc 3,350.91 1,714.96 24589 155.77 2*573.14 1,462.66 767. 64 990.63 987 798.28 "728.i4 1,649.47 12,512.61 I Engraving 58.82 7.10 250.00 257.10 Advertising 39.15 Contract repairs 38.45 6.67 48.00 .15 .50 6.00 1.00 11.65 8.00 1.58 18.35 101.90 Electricity 60.00 30.00 30.00 30.00 30.66 30.00 30.00 30.00 30.00 30.00 30.00 30.00 30.00 360.00 Steam (heat) 30.00 15.00 15.00 15.00 15.00 15.00 15.00 90.00 Other (nonpersonal services) 1,255.93 760.91 34.40 45.00 275.90 90.00 15.46 1,221.67 Supplies: Stationery 2,040.46 209.00 58.26 181.07 219.02 449.04 117.65 93.03 17.74 88.22 93.74 79.14 56.15 1,662.06 Periodicals 93.25 5.25 6.00 20.40 8.00 3.60 65.71 7.15 18.00 15.00 8.00 157.11 Other 646.02 12.78 14.57 7.45 8.58 40.69 31.12 8.86 8.63 2.20 16.45 22.43 33.98 207.74 Equipment: Furniture and office equipment.. 7,088.40 283.62 160.24 105.40 106.40 309.23 401.31 440.22 50.64 62.90 123.85 305.63 418.63 2,768.07 Books. 27.00 5.58 15.00 25.00 1.25 92.85 6.40 27.25 136.31 72.43 382.07 Office changes and improvements 541.08 7.00 7.00 14.00 Reimbursable expenditures (including return of overpayments) ... 346.28 106.43 47.80 56.60 19.30 2.00 115.39 85.79 433.31 17,958.94 3,365.86 1,288.05 1,420.74 4,279.31 4,603.33 2,170.08 2,107.55 2,231.09 1,368.85 2,375.30 2,386.47 3,523.45 31,120.08 Total 362,498.08 18,143.38 15,584.56 15,919.90 18,936.89 19,802.05 17,385.50 16,436.65 16,816.87 16,254.64 17,207.57 18,160.90 207,722.71 1 Correspondence division and division of mail and flies abolished as divisions and made »Annual report for 1914 gave total expenses to Dec. 31, 1914, as $59,229.87. This was part of secretary's office Dec. 1,1915. necessarily an estimate. The actual payments were $62,498.08. a Estimated. Ox Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
56 FEDERAL RESERVE BULLETIN. FEBRUARY 1, 1916. EARNINGS AND EXPENSES OF FEDERAL her 31, 1915, totaling $380,157. This latter RESERVE BANKS TO DECEMBER 31, total is made up of $186,168—expenses of the 1915. banks prior to opening on November 16, 1914, and $193,989—assessments to defray the ex- The following tables show the earnings and penses of the Board prior to July 1, 1916, current expenses of each of the Federal Re- From the total of the items named, viz, serve Banks and the system as a whole for the $605,977, are deducted the amounts covered past calendar year. Separate tables are given by the net surplus earnings of five banks, viz, showing amounts charged to organization ex- $112,017, which leaves a balance of $493,960 penses, cost of Federal Reserve notes, and cost as organization expenses on January 1, 1916. of furniture and equipment for the entire period since organization. The last table The total cost of Federal Reserve notes, gives a recapitulation of earnings and ex- including the cost of transmittal to the banks, penses of the banks since organization, the was $804,705. Of this total, $157,017 was excesses of earnings over current expenses, carried to current expenses and $105,401 to amounts amortized, dividends declared, also organization expenses upon the closing of the amounts carried to organization expenses, and, books for the past period, the sum x>i these lastly, amounts carried to profit and loss. items, $262,418, representing the cost of used notes; i. e., notes put in circulation by the The combined earnings of all the Federal Federal Reserve banks. The remainder, $542,- Reserve Banks for the period since organiza- 287, represents the cost of notes not yet put tion in November, 1914, to December 31, in circulation by the banks. 1915, are given as $2,193,755, and the current expenses for the same period as $1,677,639, The cost of furniture and equipment to leaving an excess of earnings over current ex- December 31, 1915, is stated as $284,620, upon penses of $516,116. An informal ruling of the which a depreciation allowance of $14,628 was Board printed on page 12 of the January Bul- made at the close of the year, of which the letin provided that excesses of current ex- larger portion, $7,876, was charged to current penses over earnings for the period to De- expenses and the remainder, $6,752, to organicember 31, 1915, also the cost of Federal zation expenses. Reserve notes put in circulation by banks All the banks except St. Louis and Kansas whose earnings were insufficient to take care City made their current expenses in the calenof the cost of such notes in addition to cur- dar year 1915, and all the banks except Cleverent expenses should be carried to organization land, St. Louis, Kansas City, and San Francisco expenses upon the closing of the books after made their current expenses since organization. December 31, 1915. A 5 per cent dividend, amounting to Accordingly, organization expenses on Jan- $151,940, was paid to members by the Richuary 1, 1916, include aggregate deficiencies of mond Federal Reserve Bank at the end of the earnings to December 31, 1915, of $113,667, calendar year and a dividend, amounting to the cost of Federal Reserve notes used to $65,523, was declared by the Dallas Federal December 31, 1916, not offset by current Reserve Bank on January 7, 1916. The earnings—$105,401; depreciation of furni- Atlanta and Chicago Federal Reserve Banks, ture and equipment not etiarged to current while not declaring dividends, show net profits expenses, $6,752; and, in addition, organ- for the period since organization of $82,550 isation expenses for the period to Decem- and $20,091, respectively. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
FEBRUARY 1, 1916. FEDERAL RESERVE BULLETIN. 57 Earnings and current expenses of each of the Federal Reserve Banks during the calendar year 1915. EARNINGS. B to o n s . - 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 - . Atlanta. • c C ag h o i- . Lo S u t. is. M ap i o n l n is e . - K C a i n ty s . as Dallas. Sa c n i s F c r o a . n- Total. Bills discounted—members $9,859 $22,855 $17,445 $29,555 $312,907 $227,212 $76,495 $44,836 $50,489 $62,715 $239,558 $61,707 $1,155,633 Bills bought—bankers' acceptances..... 49,038 97,135 29,605 11,281. 858 89 24,069 6,387 5,248 7,832 13,122 244,664 Investments: United States bonds. 6,351 8,288 15,516 75,591 7,488 18,793 20,631 635 18,431 171,724 Warrants 57,916 192,520 54,156 55,972 601 1,541 62,431 16,325 20,931 9,575 289 18,432 490,689 Commissions received. . 2,402 10,547 201 13,150 Sundry profits 9,161 123,782 824 484 4,609 1*4 k?,k 3,105 4,148 648 1,505 1,508 64,597 Total earnings 125,566 332,218 1133,276113,148 314,850 233,652 253,409 78,141, 99,609 101,401 241,987 113,200 2,140,457 Deduct commission paid. 9,98 1,110 1,540 1,410 2,338 771 819 861 9,847 Earnings 124,568 331,108 131,736 111,738 314,850 233,652 251,071 77,370 98,790 100,540 241,987 113,200 2,130,619 CURRENT EXPENSES. Assessment account expenses of Federal Reserve Board since July 1 $9,610 $21,841 $10,523 $11,901 $6,710 $4,832$13,258 $5,577 $4,753 $5,928 $5,511 $7,871 $108,315 Federal Advisory Council. 410 1,000 343 386 ' 87 403 902 150 697 297 1,387 951 7,013 Governors' conferences... 484 1,440 912 774 851 895 785 931 1,003 728 2,419 11,746 Federal Reserve Agents' conferences 283 267 218 244 202 224 317 422 339 717 169 4,299 Directors7 fees., 6,938 7,340 3,153 2,090 3,260 4,925 2,430 4,460 3,410 2,970 1,800 1,320 44,096 Legal fees 1,200 2,250 1,969 2,500 941 1,304 5,500 1,924 1,501 2,871 21,960 Salaries: Bank officers 32,050 68,033 32,580 30,083 25,978 26,444 50,000 51,858 27,542 25,500 32,373 40,750 443,191 Clerical staff 18,641 66,708 31,309 24,730 24,674 42,225 35,164 20,745 31,681 26,255 24,032 Special officers and watchmen 322 1,133 1,026 2,484 4,777 1,650 2,319 1,146 113 25,013 Another 1,389 3,434 1,185 1,806 7,814 Traveling expenses: Directors... 1,072 1,174 2,170 1,951 3,579 1,468 1,380 953 3,854 1,866 168 22,494 Officers and clerks.... 755 930 217 1,115 455 1,463 927 935 674 369 1,022 1,306 10,168 Per diem allowance of directors 1,370 2,290 1,068 1,420 1,880 2,518 790 1,170 940 3,891 1,332 330 18,999 Telephone 1,017 1,614 959 894 306 291 1,264 767 543 537 581 407 9,180 Telegraph 125 410 63 190 271 504 529 663 274 359 346 203 3,937 1,983 4,228 2,848 3,234 2,911 4,311 4,892 1,864 9,372 3,047 1,471 43,629 2,167 797 1,572 563 2,712 2,101 690 345 4 5,729 220 16,908 Rent. 13,400 39,497 7,720 7,852 25,176 16,725 5,000 8,500 8,405 15,656 160,152 Insurance and premiums on fidelity bonds 1,345 1,603 2,761 2,298 1,862 1,852 2,731 1,822 1,144 1,188 5,401 667 24,674 Light, heat, and power... 971 1,138 672 91 1,294 68 986 178 260 5,658 Printing and stationery.. 2,788 16," 782* 3,291 "i,"375 4,039 4,729 7,507 4,833 3,808 7,721 5,116 4,875 60,864 Repairs and alterations.. 474 243 535 40 1,780 107 995 • 136 507 87 3,039 8,041 All other expenses not 5,028 19,350 1,198 3,153 1,677 3,669 4,244 2,035 3,892 2,912 2,258 50,319 Total current expenses... 102,433256,342110,935 108,050 91,519 96,316 176,965136,313 80,367 112,401 109,875 109,213 1,490,729 Excess of earnings over current expenses 22,135 74,766 20,801 3,688 233,331 137,336 74,106 258,943 18,423 HI, 861 132,112 3,987 639,881 1 Including $20,503 appreciation on United States bonds. 2 Deficit of operation. Expenses of the Federal Advisory Council and of the Conferences of the Governors and of the Federal Reserve Agents from date of organization to Dec. SI, 1915. Federal Reserve Bank. A F d e v d i e s r o a r l y c G on o f v e e r r e n n o c r e s s ' . R A Fe e g d s e e e n r r t v a s e l ' Total. Federal Reserve Bank. A F d e v d i e s r o a r l y c G on o f v e e r r e n n o c r e s s ' . R A Fe e g d s e e e n r r t v a s e l ' Total. Council. conferences. Council. conferences. Boston $410 $543 $283 $1,236 St. Louis $150 $931 $422 $1,503 New York 1,000 1,440 267 2,707 Minneapolis 848 1,181 339 2,368 Philadelphia 374 912 218 1,504 Kansas City 357 924 717 1,998 Cleveland 574 911 244 1,729 Dallas 1,387 524 169 2,080 Richmond 135 878 202 1,215 San Francisco 951 2,720 897 4,568 Atlanta 403 958 224 1,585 Chicago 1,153 948 317 2,418 Total 7,742 12,870 4,299 24,911 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
58 FEDERAL RESERVE BULLETIN. FEBRUARY 1, 1916. Organization expenses of the Federal Reserve Banks and the system as a whole. 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 - . Atlanta. c C a h g i o - . 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. Sa c n i s F c r o a . n- Total. Expenses prior to Nov. 16,1914 . $12,999 $30,967 $13,305 $15,866 $12,012 $15,255 $16,641 $5,854 ,$13,205 $15,699 $14,556 $19,809 $186,168 Assessment, account expenses Federal Reserve Board prior to July 1, 1915 17,266 41,368 18,396 21,511 11,556 8,342 23,307 9,849 8,533 9,880 10,164 13,817 193,989 Cost of Federal Reserve notes used prior to Jan. 1, 1916, not offset by current earnings 2,586 150,000 9,014 12,120 10,603 13,805 7,273 105,401 Deficiency in earnings to Dec. 31, 1915.... 9,383 69,346 23,479 11,459 113,667 Depreciation, furniture and equipment.. 1,752 5,000 6,752 Total 34,603 122,335 31,701 55,774 23,568 23,597 39,948 97,169 32,341 67,863 24,720 52,358 605,977 Less amounts charged against current earnings to Dec 31,1915.. 184 23,568 23,597 39,948 24,720 112,017 Organization expenses Jan. 1/1916 34,603 122,335 31,517 55,774 97,169 32,341 67,863 52,358 493,960 1 Cost of notes used from July 1 to Dec. 31, $63,800, charged to current expenses. Cost of Federal Reserve notes, November, 1914, to Dec. 31, 1915. Boston. Y N o ew rk - . d P el h p i h la ia - . C la le n v d e . - m R o ic n h d - . Atlanta. c C a h g i o - . 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. Sa c n i s F c r o a . n- Total. Cost of Federal Reserve notesuptoDec.31,1915 $50,535 $345,887$55,772 $51,772 $31,766 $34,058 $65,709 $34,483 $38,634 $25,057 $28,844 $42,188 $804,705 Less cost of notes used up to Dec. 31,1915: Charged to current expenses 9,316 63,800 12,600 14,398 24,556 5,329 8,098 18,920 157,017 Charged organization expense 2,586 50,000 9,014 12,120 10,603 13,805 7,273 105,401 Total 11,902 113,800 12,600 9,014 14,398 24,556 5,329 12,120 18,701 13,805 18,920 7,273 262,418 Cost of unissued Federal Reserve notes Jan. 1, 1916 38,633 232,087 43,172 42,758 17,368 9,502 60,380 22,363 19,933 11,252 9,924 34,915 542,287 Cost of furniture and equipment (including vaults), November, 1914, to Dec. 31, 1915. 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 - . Atlanta. 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 t s y a . s Dallas. Sa c n i s F c r o a . n- Total. Cost of equipment $11,347 $26,980 $18,491 $20,187 $11,849 $8,545 $26,210 $20,346 $54,159 $46,829 $33,255 $6,422 $284,620 Depreciation allowance... 1,752 . 2,349 2,317 3,210 5,000 14,628 Balance Jan. 1,1916. 9,595 26,980 18,491 20,187 9,500 6,228 23,000 20,346 54,159 41,829 33,255 6,422 269,992 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
FEBRUARY 1. 1916. FEDERAL RESERVE BULLETIN. 59 Organization expenses, also cost of Federal Reserve notes and equipment for the period November, 1914, to Dec. SI, 1915. Boston. Y N o e r w k. d P el h p i h la ia - . C la le n v d e . - m R o ic n h d - . Atlanta. c C a h g i o - . Lo S u t. is. M ap i o n l n i e s. - K G an it s y a . s Dallas. Sa c n i s F c r o a . n- Total. Expenses prior to Nov. 16 1914 $12,999 $30,967 $13,305 $15,866 $12,012 $15,255 $16,641 $5,854 $13,205 $15,699 $14,556 $19,809 $186,168 Assessments, account expenses Federal Reserve Board, prior to July 1, 1915 17,266 41,368 18,396 21,511 11,556 8,342 23,307 9,849 8,533 9,880 10,164 13,817 193,989 Total organization expenses 30,265 72,335 31,701 37,377 23,568 23,597 39,948 15,703 21,738 25,579 24,720 33,626 380,157 Cost of Federal Reserve notes 50,535 345,887 55,772 51,772 31,768 34,058 65,709 34,483 38,634 25,057 28,844 42,188 804,705 Cost of furniture and equipment: Equipment 9,543 8,941 4,538 4,940 3,899 2,726 9,351 9,960 6,077 5,374 6,376 1,069 72,794 Vaults 9,540 1,496 6; 960 44,351 15,071 19,466 600 97,484 Machines. - 1,804 8,145 9,291 4,372 7,297 4,323 7,364 10,013 3,682 12,314 7,388 4,753 80,74§ Other 9,894 4,662 1,335 653 2,535 373 49 14,070 25 33,596 Total cost of furniture and equipment 11,347 26,980 18,491 20,187 11,849 8,545 26,210 20,346 54,159 46,829 33,255 6,422 284,62© Recapitulation of earnings and expenses of the Federal Reserve Banks and the system as a whole from organization to Dec. SI, 1915. 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 - * Atlanta. c C a h g i o - . 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. San c is F c r o a . n- Total. Earnings: Nov. 16 to Dec. 31, 1914 $891 $13,927 $2,739 $2,077 $4,730 $2,808 $17,814 $9,463 $1,322 $1,934 $2,679 $2,761 $63,145 Jan. 1 to Dec. 31,1915.124,568 331,108 111,233 111,738 314,850 233,652 251,071 77,370 98,790 100,540 241,987 113,200 2,110,107 Appreciation on United States bonds 20,503 20,501 Total 125,459 345,035 134,475 113,815 319,580 236,460 268,885 86,833 100,112 102,474 244,666 115,961 2,193,755 Current expenses: Nov. 16 to Dec. 31, 1914 13,710 25,004 10,756 15,148 12,791 7,124 23,342 19,866 11,647 13,552 15,763 18,207 186,91© Jan. 1 to Dec. 31,1915.102,433 256,342 110,935 108,050 91,519 96,316 176,965 136,313 80,367 112,401 109,875 109,213 1,490,729 Total 116,143 281,346 121,691 123,198 104,310 103,440 200,307 156,179 92,014 125,953 125,638 127,420 1,677,639 Excess of current earnings 9,316 63,689 12,784 215,270 133,020 68,578 8,098 119,028 €... Excess of current I 516, Hi expenses - . 9,383 69,346 23,479 11,459 Amortization: Cost of Federal Reserve notes used 11,902 113,800 12,600 9,014 14,398 24,556 5,329 12,120 18,701 13,805 18,920 7,273 262,418 Furniture and equip- 1,752 2,349 2,317 3,210 5,000 14,628 Total 13,654 113,800 12,600 9,014 16,747 26,873 8,539 12,120 18,701 18,805 18,920 7,273 277,046 Dividends declared . <.. 151,940 65,523 217,463 Organization expenses to Dec. 31,1915 30,265 72,335 31,701 37,377 23,568 23,597 39,948 15,703 21,738 25,579 24,720 33,626 380,157 Total. 43,919 186,135 44,301 46,391 192,255 50,470 48,487 27.823 40,439 44,384 109,163 40,899 874,66@ Deduct excess earnings... 9,316 63,689 12,784 215,270 133,020 68,578 8,098 119,028 j- 516,116 Add deficit in eaminss *"9," 383* 69,346 23," 479* "~ii,*459 Organization expenses, Jan. 1, 1916 34,603 n 22,335 31,517 55,774 97,169 32,341 67,863 52,358 493,961 Profit and loss account credit 23,015 82,550 20,091 9,865 135,521 Profit and loss account debit illl 111 1 Cost of Federal reserve notes used from July 1 to Dec. 31,1915, and not offset by earnings—$111—carried to profit and loss. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
60 FEDEKAL BESEBVE BULLETIN. FEBRUARY 1, 1916. The amounts held to the credit of the Federal GOLD SETTLEMENT FUND. Reserve Banks on January 20, 1916, were $84,230,000, while the amounts standing to the Payments and transfers through the gold credit of the Federal Reserve Agents in the settlement fund have been numerous during Federal Reserve Agents' fund on that date the month of January and Indicate its con- were $58,030,000. tinued development. Federal Reserve Banks A condensed summary of transactions in the and Federal Reserve Agents are using the gold settlement fund from May 20 to December fund freely, 31, 1915, is given below: Condensed summary of transactions, May 20 to Dec, SI, 1915, both inclusive. With- Excess of— Payments to and from other Federal Redrawn serve Banks. Balance Fede B ra a l n R k e o s f e — rve G po o s ld it e d d e . - d W ra i w th n - . by f e t r r a t n o s- T w o it t h a - l t i o n c f r u e n d d it R F A e e g s d e e e n r r v a t. e l drawn. d W raw it a h l - s. d T e o b t i a ts l . c T re o d t i a t l s. d N eb e i t t. cr N e e d t it. De 19 c 1 . 5 3 . 1, Boston- $3,230,000 $3,230,000 $134,160,000 $135,209,000 $1,049,00014,279,000 New York 87,000,000 87,000,000 334,583,000 253,300,000 $81,283,000 5,717,000 Philadelphia... 12,450,000$7,000,000 $5,000,000 $121,,000,000 450,000 129,399,000 138,644,000 9,245,000 9,695,000 Cleveland 3,200,000 270,000 270,000 2,930,000 17,194,000 25,306,000 8,112,00000011,042,000 Richmond 9,770,000 110,000 9,550,000 10,660,000 67,879;, 000 78,644,000 10,765,000 9,875,000 Atlanta 6,380, 13,700,000 13,700,000 7,320,000! 32,107,000 43,144,000 11,037,000 3,717,000 Chicago 12,030, 000,000 4,260,000 6,260,000 5,770,000 156,084,000 151,670,000 4,414,000 1,356,000 St. Louis... 3,220,000 000,000 5,000,000 7,000,000 3,780,000 101,517,000 111,369,000 9,852,000 6,072,000 M Ka in n n s e a a s p C o i l t i y s 3 1 , , 4 4 8 0 0 0 , ,ooo.: 276,666 4 7 , , 0 0 0 0 0 0 , , 0 0 0 0 0 0 4 7 , , 0 2 0 7 0 0 , , 0 0 0 0 0 0 2 3 , , 6 7 0 9 0 0 , , 0 00 0 0 0 37 6 , , 3 1 0 4 5 1 , , 0 0 0 0 0 0 4 1 3 3 , ,0 5 9 5 6 9 , , 0 0 0 0 0 0 6 6 , , 9 2 5 5 5 4 , , 0 0 0 0 0 0 4 2 , , 3 4 5 6 5 4 , , 0 0 0 0 0 0 Dallas 7,680,000 930,000 1,900,000 9,830,000 2,170,000 20,398,000 31,876,000 11,478,000 9,308,000 San Francisco 5— 000 7,000,000 2,050,000 7,050,000 1,070,000 15,882,000 26,832,000 10,950,000 9,880,000 000 5, Total 155,800,000 25,580,000 52,460,000 78,040,000 77,760,000 !l, 052,649,0001,052,649,00085,697,000 85,697,000 77,760,000 Amount of clearings to Dec. 31, 1915. the Federal Reserve Bank of Chicago were $4,414,000, an amount relatively small in pro- Total clearings. Balances. portion to its total payments of $156,084,000. The net payments made by the Federal Reserve Previously reported $964,300,000 $175,381,000 Settlement of Dec. 30,1915 52,873,000 9,818,000 Bank of New York were much heavier, both in Total 1,017,173,000 185,199,000 amount and relatively, being $81,283,000. Other transfers between banks 35,476,000 Among the causes which may be cited to Total payments between F ederal Reserve Banks effected through gold explain this shifting in the ownership of the settlement fund, to Dec. 31,1915... 1,052,649,000 gold held in the gold settlement fund are the Amount of clearings and transfers between Federal Reserveusual late summer and fall movement of funds Banks, from Jan. 1, 1916. from New York to the interior for crop-moving purposes and the movement of a part of the cle T a o ri t n a g l s. Balances. Transfers. gold received from Europe in payment for exports in the course of its distribution among Wee J k a n e n 6 d i 1 n 9 g 1 - 6 .... $46,957,000 $5,297,000 $5,900,000 the interior points at which much of the export ' Jan. 13,1916 43,307,000 3,421,000 582,000 business originated. The movement of gold Jan 20 1916 42,904,000 5,500,000 519,000 for crop-moving purposes is balanced in normal Total 133,168,000 14,218,000 7,001,000 years by return shipments beginning in No- Payments for the Federal Reserve Bank of vember and reaching their maximum about New York and the Federal Keserve Bank of the first of the year. In the present situa- Chicago to other Federal Reserve Banks were tion it appears probable that the other factor greater than their receipts, while each of the mentioned has been sufficiently important to other 10 banks received payments in excess overbalance this normal return flow and that of those made. The net payments made by it may be considered as accounting for the Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
FEBRUARY 1, 1916. FEDERAL RESERVE BULLETIN. 61 transfer of ownership of gold held in the gold items of $156,084,000, while its credits were settlement fund from the Federal Reserve only $4,114,000 less;, Boston, next in order, Bank of New York to other Federal Reserve received payments aggregating $135,209,000 Banks. This movement did not terminate and made payments only $1,049,000 less; with the close of the year 1915, but continued Philadelphia and St. Louis, which ranked next through the first week in January, so that the in volume of transactions, had balances also highest point was reached on January 6, when relatively small; while Minneapolis, San Franthe net amount thus transferred stood at cisco, and Cleveland, which handled the small- $86,293,000. The settlements of January 13 est volume of transactions, were all creditors and 20 have, however, both been favorable by amounts large in proportion to the total to the Federal Reserve Bank of New York, so amount of transactions handled by them. that the net amount of the movement at the The table following shows the amounts of the latter date was only $82,674,000. deposits and withdrawals made by each Fed- It is interesting to note that, with the excep- eral Reserve Bank through the United States tion of New York, the banks which have Treasury, subtreasuries, or mints. No shiphandled the largest transactions through the ments of gold between the various offices of the gold settlement fund show net payments or Treasury have been necessary in connection receipts much smaller with relation to total with the operations of the fund, as with the payments made and received than do those exception of the New Orleans Subtreasury and banks which have handled the smaller aggre- the Denver Mint the deposits at each point gate sums. For example, the Federal Re- have exceeded the withdrawals, and in these serve Bank of Chicago, which ranks second in cases the Treasury Department had ample amount of total payments, had total debit funds on hand to make the payments desired. Deposits and withdrawals by Federal Reserve Banks, and where made, May to to Dec. 81, 1915. [000's omitted.] Federal Reserve Bank of— Subtreasury or mint at— Boston. New York. Philadelphia. Cleveland. Richmond. Atlanta. Chicago. Depos- With- Depos- With- Depos- With- Depos- With- Depos- With- Depos- With- Depos- Withited. drawn. ited. drawn. ited. drawn. ited. drawn. ited. drawn. ited. drawn. ited. drawn. $3,230 New York . • . .. $87,000 Philadelphia ....... ......... $12,450 $7,000 $110 Cincinnati . . ... "ii*5o6" Washington 1,700 1270 i $9,770 11,110 16,270 Chicago $12,030 $2,000 Total 3,230 87,000 12,450 7,000 3,200 270 9,770 1,110 6,380 12,030 2,000 Federal Reserve Bank of— Subtreasury or mint at— St. Louis. Minneapolis. Kansas City. Dallas. San Francisco. By all banks. Depos- With- Depos- With- Depos- With- Depos- With- Depos- With- Depos- Withited. drawn. ited. drawn. ited. drawn. ited. drawn. ited. drawn. ited. drawn. $3,230 New York . 87,000 PhiladelDhia $0.5 12,560 $7,000.5 1,500 Wash inszt on $270 2$4,150 21,890 1,650 Chicago $i, 400 13,430 2,000 St. Louis $3,220 12,000 $3,480 25 6,700 2,025 NPW Orleans 3,510 7,810 3,510 7,810 San Francisco 3 $5,980 $5,000 5,980 5,000 94.5 94.5 Total 3,220 2,000 1,400 3,480 270 7,660 7,930 5,980 5,000 155,800 25,580 1 Includes a deposit of $5,000,000 made by the Treasury Department. 2 Includes a deposit of $4,000,000 made by the Treasury Department. s In addition to the amount shown, $4,400,000 has been deposited with the assistant treasurer of the United States at San Francisco, to the credit, however, of the Federal Reserve Agent at San Francisco. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
62 FEDERAL RESERVE BULLETIN. FEBRUARY 1, 1916. Gold settlement fund—Summary of transactions Dec. %4, 1915, to Jan, 20, 1916. Gold. Transfers. Settlement of Dec. 30,1915. Dec. 30, Balance 1915, bal- Federal Reserve last state- ance in Bank of— m 2 e 3 n , t 1 , 9 D 15 e . c. d W ra i w th n - . Deposited. Debit. Credit. 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. f c u l n e d a r a in ft g e . r Boston $3,331,000 $5,637,000 $6,585,000 $948,000 $4,279,000 New York 6,613,000 $10,000,000 $845,000 $9,051,000 18,268,000 9,217,000 6,717,000 Philadelphia 5,169,000 $845,000 5,602,000 8,283,000 2,681,000 8,695,000 Cleveland 10,410,000 854,000^ 1,486,000 632,000 11,042,000 Richmond 9,205,000 $400,000 4,433,000 5,503,000 1,070,000 9,875,000 Atlanta 2,720,000 1,640,000 2,637,000 997,000 3,717,000 Chicago 1,698,000 154,000 596,000 9,557,000 8,961,000 1,256,000 St. Louis 6,243,000 171,000 5,205,000 5,034,000 6,072,000 3 988 000 95,000 462,000 367,000 4,355,000 Kansas'City 1,722,000 50,000 1,229,000 2,021,000 792,000 2,464,000 Dallas 9,319,000 150,000 154 000 210,000 603,000 393,000 9,408,000 San Francisco... 9,942,000 2,000,000 143,000 2,081,000 1,938,000 9,880,000 Total 70,360,000 2,600,000 10,000,000 999,000 999,000 9,818,000 52,873,000 52,873,000 9,818,000 77,760,000 Gold. Transfers. Settlement of Jan. 6,1916. Balance Jan. 6,1916,, Federal Reserve last state- balance in Bank of— m 3 e 0 n ,1 t, 9 D 15 e . c. d W ra i w th n - . Deposited. Debit. Credit. 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. f c u l n e d a r a in ft g e . r Boston $4,279,000 $1,500,000 $1,176,000 $4,941,000 $3,765,000 $1,603,000 New York 6,717,000 *$8,*666,'666" 4,000,000 *$i*666,"666" 3,010,000 11,726,000 8,716,000 8,707,000 Philadelphia 8,695,000 *$5*666,"666* 5,500,000 298,000 6,037,000 5,739,000 8,897,000 Cleveland 11,042,000 50,000 1,168,000 1,737,000 569,000 11,661,000 Richmond 9,875,000 53,000 4,636,000 4,583,000 9,822,000 Atlanta 3,717,000 396,000 1,876,000 1,480,000 3,321,000 Chicago 1,256,000 50,000 450,000 9,782,000 10,498,000 716,000 2,372,000' St. Louis . . . 6,072,000 4,588,000 6,096,000 1,508,000 7,580,000 Minneapolis 4,355,000 350,000 61,000 125,000 64,000 3,944,000 Kansas City 2,464,000 16*666" 303,000 1,662,000 1,359,000 2,151,000 Dallas 9,408,000 1,100,000 323,000 827,000 504,000 8,812,000 San Francisco . .. 9,880,000 93,000 2,093,000 2,000,000 11,880,000 Total.... 77,760,000 5,010,000 8,000,000 7,000,000 7,000,000 5,297,000 46,957,000 46,957,000 5,297,000 80,750,000 Gold. Transfers. Settlement of Jan. 13,1916. Balance Jan.13,1916, Federal Reserve last state- balance in Bank of— m 6 e , n 1 t 9 , 1 J 6 a . n. d W ra i w th n - . Deposited. Debit. Credit. Net debit. d T e o b t i a t l . c T re o d t i a t l s. Net credits. f c u l n e d a r a in ft g e . r Boston $1,603,000 $3,973,000 $4,457,000 $484,000 $2,087,000 New York 8,707,000 $500,000 10,612,000 10,658,000 46,000 9,253,000 Philadelphia 8,897,000 $805,000 5,512,000 4,707,000 8,092,000 Cleveland 11,661,000 50,000 1,254,000 1,556,000 302,000 12,013,000 Richmond 9,822,000 $360,000 $600,000 6,332,000 6,844,000 512,000 10,574,000 Atlanta 3,321,000 2,174,000 2,379,000 205,000 3,526,000 Chicago 2,372,000 9,000,000 $50,000 32,000 1,190,000 7,171,000 5,981,000 10,164,000 St. Louis. 7,580,000 1,383,000 4,257,000 2,874,000 6,197,000 Minneapolis 3,944,000 43,000 77,000 34,000 3,901,000 Kansas City 2,151,000 60,000 1,569,000 2,262,000 693,000 2,784,000 Dallas 8,812,000 440,000 32 000 332,000 1,498,000 1,166,000 9,506,000 San Francisco 11,880,000 1,060,000 500,000 44,000 57,000 13,000 10,333,000 Total 80,750,000 1,920,000 9,600,000 582,000 582,000 3,421,000 43,307,000 43,307,000 3,421,000 88,430,000 Gold. Transfers. Settlement of Jan. 20,1916. Balance Jan .20,1916,. Federal Reserve last state- balance in Bank of— m 1 e 3 n ,1 t, 9 J 1 a 6 n . . d W ra i w th n - . Deposited. Debit. Credit. 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. f c u l n e d a ri a n ft g e . r Boston $2,087,000 $817,000 $5,063,000 $4,246,000 $1,270,000 New York 9,253,000 $2,000,000 9,314,000 12,387,000 $3,073,000 10,326,000 Philadelphia........ 8,092,000 2,579,000 7,192,000 4,613,000 5,513,000 Cleveland 12,013,000 121,000 1,337,000 1,216,000 11,892,000 Richmond.. 10,574,000 50,000 $660,000 5,783,000 6,533,000 750,000 ll,934-,00O Atlanta 3,526,000 166,000 1,486,000 1,320,000 3,360,000 Chicago 10,164,000 $413,000 5,785,000 7,067,000 1,282,000 11,859,000 St. Louis 6,197,000 --------- 106,000 ""1*537,"666* 5,387,000 3,850,000 4,766,000 Minneapolis 3,901,000 260,000 325,000 65,000 3,641,000 Kansas City.' .... 2,784,000 io," 666" 850,000 1,190,000 340,000 3,114,000 Dallas 9,506,000 $519,000 20,000 285,000 265,000 8,967,000 San Francisco 10,333,000 "2,*8o6,"666* 97,000 152,000 55,000 7,588,000 Total.......... 88,430,000 4,860,000 660,000 519,000 519,000 5,500,000 42,904,000 42,904,000 5,500,000 84,230,000 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
FEBRUARY 1, 1916. FEDERAL RESERVE BULLETIN. 63 Federal Reserve agents9 fund—Summary of transactions, Dec. 24, 1915, to Jan. 20 1916, f D 1 e 9 c 1 . 5 2 . 3, Week en 1 d 9 i 1 n 5 g . Dec. 30, W ing e e J k a n e . n 6 d , - Week ending Jan. 13,1916. Week ending Jan*. 20,1916. 1916.1 Federal Reserve Agent at— Balance. Deposited. Balance. d W ra i w th n - . Deposited. Balance. d W ra i w th n - . Deposited. Balance. Philadelphia $5,000,000 15,000,000 $5,000,000 $5,000,000 Richmond . 9,150,000 ""$400,'666' 9,550,000 "$666," 666""'"$366,'666* 9,310,000 $500,000 $50,000 8,860,000 Atlanta 13,700,000 13,700,000 13,700,000 13,700,000 Chicago ... . 4,260,000 4,260,000 4,260,000 4,260,000 St. Louis 5,000,000 5,000,000 '5,000,000 5,000,000 Minneapolis 4,000,000 4,000,000 4,000,000 4,000,000 Kansas Gity 7,000,000 7,000,000 7,000,000 7,000,000 Dallas . 1,750,000 150,000 1,900,000 1,900,000 1,900,000 San Francisco 6,450,000 6,450,000 1,060,000 7,510,000 800,666 8,310,000 ----- • Total. 56,310,000 550,000 56,860,000 600,000 1,420,000 57,680,000 500,000 850,000 58,030,000 i No change. DISCOUNT RATES. Discount rates of each Federal Reserve Bank in effect Jan. 27 1916. y Trade acceptances. Agricul- M o an f a d t 1 u 0 l r e i s t d i s a e . y s st M i o o n f a c 3 o t l 0 u u v r s e d i i r t v a i e y e 1 s . s 0 , M t i o o n f a c 6 o t l 0 u u v r s e d i i r t v a i e 3 e y s . 0 s, t M i o o n f a c 9 o t l 0 u u v r s e d i i r t a v i y e e 6 s s . 0 > p l t i a u v p r e a e - l r s t a o o n v c d e k r To 60 days,O 9 v 0 e r d 6 ay 0 s t , o m p C a o o p d m e it r - y . 90 days. inclusive. inclusive. Boston, .... 13* New York Philadelphia 3. Cleveland 4 Richmond 4 13 Atlanta... 3J 3 Atlanta (New Orleans branch). 4 Chicago St. Louis Minneapolis Kansas City Dallas San Francisco .'.... 1 Rate for commodity paper maturing within 90 days. 2 Rate for trade acceptances bought in open market without member bank indorsement. * A rate of 2 to 4 per cent for bills with or without member bank indorsement has been authorized. fRate for commodity paper maturing withm 30 days, 3£ per cent; over 30 to 60 days, 4 per cent; over 60 to 90 days,4| per cent; over 90 days 5 per cent. 23914—16 8 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
64 FEDEBAL BESERVE BULLETIN. FEBRUARY 1, 1916. INFORMAL RULINGS OF THE BOARD. Below are reproduced letters sent out from "It should be understood, of coifrse, that time to time over tlie signatures of the officers the 10 per cent limitation imposed by section 5200 of the United States Revised Statutes of the Federal Reserve Board, which contain is not intended to apply to the mere acceptance information believed to be of general interest to of a bill of exchange, but that the provisions of Federal Reserve Banks and member banks of section 5200 of the United States Revised the system: Statutes would apply to the indebtedness arising between the drawer of the bill and the Purchase of United States Bonds. accepting bank in case the drawer fails to In answer to your letter dated December 23, furnish funds with which to meet the acceptasking whether Government bonds bought by ance a/t maturity.7' the Federal Reserve Bank of St. Louis prior It is, therefore, the opinion of this office that to January 1, 1916, may be deducted from its the objections incurred by the mere acceptance proportionate share of the bonds allotted under of a draft do not come within the provisions of the provisions of section 18 at the end of the section 5200. first quarter of 1916, I have to advise you that JANUARY 3, 1916. the Federal Reserve Board, in a ruling printed on page 217 of the August Bulletin, ruled that bonds bought by Federal Reserve Banks prior Status of Employees of Reserve Banks. to December 31, 1915, shall not be considered Your letter of January 3 was submitted to eligible for deduction in this manner. the Board, and I am directed to say to you The only question to be considered in this that the Board is in accord with the views connection is whether the bonds bought in the expressed therein. open market bear the circulation privilege; if As you stated, the real point is that the list they do, .they are eligible as a deduction from of all salaries should be submitted to the Board the amount of bonds allotted under the pro- once a year for its approval, and the month of visions of section 18 whether or not they are January would seem to be the natural time for actually securing circulation at the time of such approval, as that is the usual month when purchase; if they do not bear that privilege, changes in salaries are made. thay have no relation to the provisions of sec- The Board does not wish to convey the idea tion 18 and can not be considered in making the that it desires that all clerks should have defideduction from the amount of bonds allotted nite terms of office. These appointments may under that section. be for an indefinite term provided they are terminable at the pleasure of the board of DECEMBER 31, 1915. directors of the bank. While the general custom is that clerks are appointed by the officers of the bank, the officers, Senior and junior, as Acceptance Securities. a rule, are appointed or elected by the board of Your letter addressed to Hon. 0. S. Hamlin, directors of the bank, generally to serve for the Governor of the Federal Reserve Board, under ensuing year. It would appear, therefore, that date of December 16, has been duly considered this general practice ought to be observed also by the Board, and I am instructed to advise by the Federal Reserve Banks and senior and you that the Attorney General, in an opinion junior officers ought to be appointed from year some time ago (17 Op. A. G., 471), reached to year and their salaries, as all others, should the conclusion that while national banks did be subject to annual approval by the Federal not have the power to accept drafts and bills Reserve Board. of exchange at that time, if there were no JANUARY 6, 1916. other legal objections to such acceptance, it would not come within the restriction contained in section 5200. The Federal Reserve Eligibility of State Banks. Board in its letter to the Governor of the In reply to your letter of December 29,1915, Federal Reserve Bank of New York relating requesting an opinion as to whether a Michigan to agreements for acceptance securities, printed State bank in a city of approximately 5,000 on page 269 in the September Federal Reserve inhabitants, could become a member of the Bulletin, stated that— Federal Reserve System, with a capital of less Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
FEBRUARY 1, 1916. FEDERAL RESERVE BULLETIN. 65 than $50,000, you are advised that section It is the view of the Board that cattle should 5138, United States Revised Statutes, as be considered as a readily marketable comamended in 1900, provides, in substance, that modity and that the Federal Reserve Bank of no association shall be organized with a capital St. Louis may consider as eligible a bankers' of less than $100,000 except in cities (1) where acceptance secured by a chattel mortgage on the population does not exceed 6,000, banks cattle. with a capital of not less than $50,000 may be JANUARY 6, 1916. organized with the approval of the Secretary; (2) where the population does not exceed 3,000, banks with a capital of not less than Eligible Acceptances. $25,000 may be organized with the sanction of the Secretary of the Treasury. If the popula- The Federal Reserve Board recently received tion exceeds 50,000 the capital must be not a telegram from a Federal Reserve Bank statless than $200,000. As the population of ing that the bank was offered acceptances Bessemer, Mich., is more than 3,000, but less drawn by a manufacturer on and accepted by than 6,000, it would come under exception (1). a trust company in the city in which the bank is located. The trust company is not a While the statute vests in the Secretary of member of the Federal Reserve System. It the Treasury a discretion as to whether nawas stated that the proceeds were to be used tional banks in cities of from 3,000 to 6,000 for the purchase of raw material and the paymay organize with capital of less than $100,000, ment of labor used in manufacturing. The but more than $50,000, the minimum is congoods had not been sold, and the drawer could clusively fixed by law at $50,000, and State not, therefore, comply with sub-section d, secbanks located in a city of approximately 5,000 tion 3, regulation S, and furnish to the Federal population can not become member banks Reserve Bank warehouse receipts or other with a capital stock of less than that minimum. instruments desired. No power is vested in the Secretary of the Treasury or any other executive officer to While these acceptances were stated by the reduce this minimum. bank to be a safe investment it was held by the Federal Reserve Board, after careful con- JANUARY 6, 1916. sideration, that they were not of a kind eligible to be taken by a Federal Reserve Bank. JANUARY 8, 1916.. Circulating Notes. In further reply to your letter of November 9, 1915, you are advised that counsel for the Status of Class C Directors. Federal Reserve Board has ruled that there is In reply to a letter sent out from this office nothing in the provisions of the Federal Reunder date of January 5, the Federal Reserve serve Act or of the National Bank Act which Board has been informed that, in several of the prevents a national bank which has reduced Federal Reserve Banks, class C directors are the amount of its circulating notes by the sale placed in a position with reference to the adof bonds in the manner provided in section 18 ministration of the bank's affairs, through the of the Federal Reserve Act, from taking out provisions of the by-laws, which is different additional circulation on the security of other from that of directors of classes A and B. The bonds bought in the open market. matter has been carefully investigated and JANUARY 6, 1916. legal advice obtained in respect to it, with the result that the Board has directed me to express to you the opinion that the Federal Reserve Cattle Paper. Act does not warrant any discrimination by Your letter of January 4, stating that a by-laws against class C directors, but that large cattle loan company has taken up with a they are regarded as being eligible to the same New York banking institution an arrange- appointments and subject to the same duties ment under which it may draw drafts with as other directors. maturities to 90 days, attaching to the draft Will you kindly bring this letter to the attena chattel mortgage on cattle securing the tion of your board of directors and advise me amount, has had the consideration of the of the result of its action ? Federal Reserve Board. JANUARY 14, 1916. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
66 EEDEBAL BESEEVE BULLETIN. FEBRUARY 1, 1916. Paper of Suspended Banks. would doubtless have been refused but for the Your correspondence with the receiver of a additional security offered. There are many national bank has been brought to the atten- banks where the management is concentrated tion of the Board. It appears that the receiver, in one officer and where the directors do not in considering his plans for the reorganization actually direct. In such cases there is an of the bank, desires assurances from you that obvious advantage in securing the indorsement the Federal Reserve Bank will, upon the reop- or guaranty of the directors, for besides the ening of the national bank, rediscount eligible added strength that is given by the names of paper for it freely, without requiring the in- well-to-do directors, the liability incurred dorsement of the directors or other additional by them in indorsing, brings about a closer security. He further intimates that upon supervision on their part of the bank's affairs. such assurances will depend the success of the The Board feels, however, that Federal Reserve plans for the reorganization of the bank. In Banks in dealing with member banks will, as the opinion of the Board you have very prop- far as possible, comply with the terms of the erly declined to give such assurances. Act and where the bank making offerings for The fact that the bank has suspended and discount is in good standing and well managed, that it is necessary to reorganize it is evidence and where the paper conforms to the regulathat its affairs have not hitherto been pru- tions of the Board and appears to be unquesdently conducted. In many cases it is cus- tionably good, a guaranty of directors should tomary for small banks, in securing accommo- not be required, but it is clear, none the less, dations from their reserve agents, to offer the that your position in declining to give .the note of the bank secured by bills receivable assurances asked for by the receiver, is well aggregating considerably more than the face taken. It is assumed, of course, that should of the note offered for discount, thus giving the national bank resume business ypur board the rediscounting bank a good margin of of directors will consider its offerings upon security. The Federal Reserve Banks are not their merits, and will discount, without the permitted under the Act to discount notes personal indorsement of its directors, such for their member banks secured in this way, but paper as may be entirely satisfactory. in granting accommodation must discount JANUARY 18, 1916. each note or bill separately. Discount operations, however, are not mandatory upon the Federal Reserve Banks. Farm Land Loans* Section 13 of the Act provides that "upon Replying to your letter of January 20, relatthe indorsement of any of its member banks, ing to the limit imposed by law on farm-land with the waiver of demand notice and protest loans, you are advised that the provisions of bj such bank, any Federal Reserve Bank may section 5200 of the Revised Statutes are applidiscount notes, drafts, and bills of exchange cable to money borrowed on the security of arising put of actual commercial .transactions." farm land under the provisions of section 24 of There is nothing in the Act that prohibits the Federal Reserve Act, and that, in conseguaranties or the deposit of additional security quence, no real estate loan should be made to under a collateral agreement. Nearly all of the any one individual in excess of 10 per cent of Federal Reserve Banks in their transactions the capital and surplus of the lending bank. with over-extended member banks, have re- You are also advised that the provisions of quired additional security or guaranties, al- section 5200 refer to the total liabilities of any though they have complied with the letter of one association, person, company, or corporathe Act by discounting notes separately with tion, and that, therefore, any other liability of the indorsement of the member bank. a borrower on his personal note should be in- It is difficult in many cases for directors of cluded in estimating the maximum amount Federal Reserve Banks to form definite con- which can be loaned on the security of real clusions as to the strength of paper offered and estate. many accommodations that have been granted JANUARY 24, 1916. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
FEBRUARY 1, 1916. FEDERAL RESERVE BULLETIN. 67 Agricultural Implement Paper. This would answer, in the affirmative, question 1: Upon the question, whether notes given by "Are the notes of farmers or consumers given for the purchase price of farm tools, agriculfarmers in payment of agricultural implements tural machinery, or other farm-operating may be rediscounted at Federal Reserve Banks, equipment discountable under the section 13 the Federal Reserve Board on December 30, of the Federal Reserve Act providing for notes, 1915, made answer as follows: bills, or drafts, drawn or issued for 'agricul-. tural purposes7?" The question put is a very close one. The law permits the rediscount of six months' Question 2 reads as follows: paper that has been "drawn or issued for agri- "Will the fact that such notes, drafts, or cultural purposes, or the proceeds of which bills are presented by the dealer with his inhave been used or are to be used for agricultural dorsement for rediscount, change their classipurposes." fication from the rating given them if pre- There can not be any doubt that a bill drawn sented by the maker (the farmer); if so, why?" by a dealer on a farmer in payment for agricul- It is to be assumed that the clause permitting tural implements purchased by the farmer is a the rediscount of agricultural six months7 bill that has been "drawn or issued for agriculpaper was enacted by Congress for the purpose tural purposes and the proceeds of which have of giving special facilities to farmers. If the been used or are to be used for agricultural note were purchased from a dealer, it would purposes." appear that the facility is not given to the The question then arises—does such paper farmer but to the dealer. However, there is comply in addition to this requirement, with no doubt that the language of the law plainly those prescribed by the FederalReserve Board would permit the rediscount of such paper ana, by Regulation B, of which II (a) prescribes that "no bill is leligible/ the proceeds of which inasmuch as, indirectly, the farmer would profit by the rediscount to the dealer—inashave been used or are to be used for permanent much as otherwise the farmer would have to or fixed investments of any kind, such as land, borrow, and probably borrow at a higher rate buildings, machinery (including therein addifor a single-name note than the money could tions, alterations, or other permanent imbe secured upon the double-name bill of exprovements, except such as are properly to be regarded as costs of operation).77 change drawn by the dealer—it is to be expected that the advantage of the lower dis- It is a very close question whether agriculcount rate and of the cheaper credit will intural implements are to be considered as perdirectly result to the benefit of the farmers. manent improvements or as part of the cost of It would appear, therefore, that from every operation. However, it must be considered point of view, question 2 should be answered that machinery of this kind is not of a permain the negative. nent character. It wears out rapidly and in most cases has to be replaced within a com- Question 3 reads: paratively short time, so that it may be as- "What provisions or marks of identification, sumed that a certain amount of money would if any, must be placed upon notes, drafts, or be spent annually and regularly for the purbills to have them properly classified as 'issued chase and replacement of machinery of this for agricultural purposes7 and render them kind. As the Board by its regulations does discountable if their maturity does not exceed not desire unnecessarily to restrict, but rather six months?77 to encourage, the facilities to be given, as far as that maybe done consistently with prudence, The nature of the bill, the name of the acit would appear that the wider interpretation ceptor, and the name of the drawer would in this case should be given, and a ruling by probably indicate that a farmer was the purthe Board would appear entirely appropriate chaser and an implement dealer the seller of which would permit notes and bills of exchange the goods. However, the purchasing member drawn by implement dealers on a farmer bank will have to satisfy itself in some satis^ against a sale to him of agricultural imple- factory way that the bill is substantially of an ments, to be considered as drawn or issued for agricultural character. A simple memoranagricultural purposes. dum attached to the bill, stating that the bill Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
68 FEDERAL RESERVE BULLETIN. FEBRUARY 1, 1916. was drawn in payment of agricultural imple- Treatment of Earnings and Expenses* ments, signed either by the acceptor or the drawer, would probably be considered sufficient On January 22 the Federal Eeserve Board evidence by the member bank and the Federal sent out the following letter and attached form Reserve Bank. which will in the future be used by Federal Question (4) reads: Reserve Banks in reporting their earnings and "What is the limit, in amount, that a Fed- expenses. eral Reserve Bank may rediscount of notes, drafts, or bills where taken for ' agricultural Inclosed * please find 50 copies of revised purposes' as provided in section 13?" forms Nos. 286b and 287b for reporting the monthly earnings and expenses of your bank. The law prescribes that in the aggregate the No change has been made in the form of the total amount of agricultural paper purchased report for the earnings except that the reading by a Federal Reserve Bank should not exceed of the first two captions has been modified to a percentage of its capital stock, the percentage agree with the reading of the corresponding to be fixed from time to time for each Federal items on Form 34. Under the second head Reserve Bank by the Federal Reserve Board. should be included, therefore, the earnings The percentage fixed by the Board differs in from all open-market purchases of trade acthe various districts. Whenever a district has ceptances, bankers7 domestic acceptances, and lied, the maximum limit has been granted, p p, g, bankers' foreign trade acceptances. No proh h b i dd t b 99 t f which has been considered to be 99 per cent of vision has been made for reporting separately the capital stock. "Commissions paid." Sucn commissions, in accordance with informal ruling of the Board Federal Reserve Bank Holidays. under date of September 22, 1915 (see p. 309 of the October Bulletin), should be treated as This table of holidays, which will be obpart of the purchase price or cost of the investserved by the 12 Federal Reserve Banks, has ment. Been made up from advices received from Under the head of current expenses the folthem. lowing observations would se^m pertinent: 1. Assessments on account of expenses of Bank. Jan. Feb. Mar. Apr. May June Federal Reserve Board should be apportioned to each month (regardless of the dates when Boston 22 19 30 paid) and cumulative figures of amounts New York 1 12,22 charged since January 1, 1916, shown in the Philadelphia..... 1 12,22 21 30 Cleveland 1 22 30 second column. Richmond 1,19 22 30 Atlanta 1,19 22 26 3 2. The expenses of the several advisorv New Orleans branch. 22 18,23 3 bodies, including the Federal Advisory Council, Chicago.. 12,22,29 4,11 30 5 St. Louis 22 30 the Governors', and the Federal Reserve Minneapolis 12,22 21 30 Kansas City 22 14 30 Agents' conferences, should be segregated, D Sa a n l l F a ra s n .. c . i . s . c . o 12,2 2 2 2 21 2,3 3 0 0 3 these expenses to include fees, per diem allowances, traveling and other incidental expenses. Bank. July. Aug. Sept. Oct. Nov. Dec. 3. Items to be apportioned over a period should on day of payment, be charged to ac- Boston 30 New York 7,30 count " Expenses paid in advance " on Form 34, C Ph le i v l e a l d a e n l d phia........ 7 7 , , 3 3 0 0 pro rata amounts to be transferred to current A N Ri e t c l w a h n m O ta o r n le d ans branch , , 4 14 7 7 , , 3 3 3 0 0 0 e b x e p in en c s lu e d s e o d n , u th n e d e l r a s p t r o d p ay er o h f e a e d ac in h g m s, o o n n t h m o an n d th l t y o C St h .L ic o a u g i o s ... 12 7 7 , , 3 3 0 0 report of expenses (Form 287b). 7,30 4. Under the general head of organization Kansas City.. 4 7,30 Dallas 4 30 expenses please report, in accordance with San Francisco. 4,9 7,30 informal ruling of December 10, 1915 (p. 12 of the January Bulletin), in short column the i Usually a holiday. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
FEBRUARY 1, 1916. FEDERAL RESERVE BULLETIN. 69 cost of Federal Reserve notes issued by the Earnings of the Federal Reserve Bank of •for the month bank prior to January 1, 1916, not offset by f , IStf 6—Continued. o ? current earnings, and all other organization MEMORANDUM. expenses shown on Form 34 after closing of books for calendar year 19.15. The total of T f o o t r al Cumulative these two items should equal the amount shown month. totals.* at the beginning of the year against item "Expense;—Organization7' on Form 34. At- Cost of Federal Reserve notes unissued by bank (including expressage, insurance, etc.). tention is called to the provisions of the Board's informal ruling of December 10, 1915, regard- Cost of furniture and equipment: Furniture and fixtures ing the methods of amortizing the cost of Fed- Vaults eral Reserve notes and other organization ex- Machines Other penses. Total cost of furniture and equipment... 5. A separate account is set up for depreciation of furniture and equipment. This account 1 Totals for items "Cost of Federal reserve notes unissued, etc./' and is to stow amounts written off in accordance of " Cost of furniture and equipment" should agree with totals for corresponding items on Form 34, as at close of business on the last of the with paragraph 5 of informal ruling of Decem- report month. ber 10,1915. Expenses of the Federal Reserve Bank of for the month 6. The amount of item "Total current ex- of , 1916. penses7' shown at the foot of Form 287b should equal the amount shown against item "Ex- T f o o t r al Total since pense—Current" on Form 34 as at close of month. Jan. 1,1916. business on the last day of each month. Items shown in memorandum on Form 286b I. Current expenses: represent amounts expended during the month serve Board (monthly proportion) on account of Federal Reserve notes printed Federal Advisory Council (fees and traveling expenses) and shipped, including expressage, insurance, Governors' conferences (including traveling expenses). etc.; also amounts paid during the month for Federal Reserve Agents' conferences (infurniture and equipment. As indicated in the cluding traveling expenses) Salaries: heading,the figures in the second column against B ank offi cers items "Total cost of furniture and equip- Clerical staff.. Special officers and watchmen ment" and "Cost of Federal Reserve notes un- All other Directors'fees: issued by bank" in this memorandum should Per diem allowance equal amounts shown against items "Fur- Traveling expenses.* Officers' and clerks' traveling expenses niture and equipment" and "Cost of unissued (less amounts included in items Federal Reserve Agents' and Governors' confer- Federal Reserve notes" on Form 34 as at close of business on the last day of the report Rent.. month. Telephone. Telegraph.. Copies of the monthly report of earnings and expenses should be sent to us on or before the Insurance and premiums on fidelity bonds, 7tn of each month. Light, heat, and power Prmting and stationery Repairs and alterations All other expenses, n. s Earnings of the Federal Reserve Bank of— for the month Total expenses of operation of , 1916. II. Cost of Federal Reserve notes issued by bank during month (including expressage, insurance, etc.) III. Organization expenses: Total Total since Organization expenses Jan. 1,1916— mo fo n r th. Jan. 1,1916. Co p s r t i o o r f to F e J d a e n r . a l 1 , R 1 e 9 s 1 e 6 r , v n e o n t o o te ff s s e u t s b e y d All other. Earnings from: Bills discounted and bought— Total Bills discounted for member banks.. Amortization of Federal Reserve notes, Bills bought in open market monthly proportion (not less than Investments- one-thirtieth cost of notes) United States bonds , All other organization expenses, Municipal warrants , monthly proportion (not less than Commissions received one-twenty-fourth of" All other").. Sundry profits IV. Depreciation of furniture and equipment., Total earnings. Total current expenses. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
70 FEDERAL RESERVE BULLETIN. FEBRUARY 1, 1916. Fiduciary Powers, DISTRICT NO. 8. Trustee, executor, administrator, and registrar of stocks The applications of the following banks for and bonds: permission to act under section 11 (k) of the Citizens National Bank, Lebanon, Ky. Federal Reserve Act have been approved since Exchange National Bank, Columbia, Mo. the issue of the January Bulletin, as follows: DISTRICT NO. 9. Trustee, executor, administrator, and registrar of stocks DISTRICT NO. 1, and bonds: Trustee, executor, administrator, and registrar of stocks Great Falls National Bank, Great Falls, Mont. and bonds: First National Bank, Cli&tonville, Wis. First National Bank, Springfield, Vt. Trustee, executor, and registrar of stocks and bonds: DISTRICT NO. 10. First National Bank, Bangor, Me. Trustee, executor, administrator, and registrar of stocks Bath National Bank, Bath, Me. and bonds: Manufacturers National Bank, Lewiston, Me. First National Bank, Anthony, Kans. Canal National Bank, Portland, Me. Burnes National Bank, St. Joseph, Mo. Trustee and registrar of stocks and bonds: Trustee, executor and administrator: Second National Bank, Nashua, N. H. First National Bank, Evanston, Wyo. DISTRICT NO. 2. DISTRICT NO. 11. Trustee, executor, administrator, and rgistrar of stocks and Trustee, executor, administrator, and registrar of stocks bonds: and bonds: First National Bank, Morristown, N. J. State National Bank, Albuquerque, N. Mex. Bloomfield National Bank, Bloomfield, N, J. Lambertville National Bank, Lambertville, N. J. North Ward National Bank, Newark, N. J. Intradistrict Clearing System. Second National Bank, Paterson, N. J. Additions to and withdrawals from the DISTRICT No. 3. system since the publication of the lists in Trustee, executor, administrator, and rgistrar of stocks and previous issues of the Bulletin are as follows: bonds: Atlantic City National Bank, Atlantic City, N. J. DISTRICT NO. 3. Withdrawals: DISTRICT No. 4. First National Bank, Dunmore, Pa. Second National Bank, Altoona, Pa. Trustee, executor, administrator, and registrar of stocks and bonds: DISTRICT NO. 4. First National Bank, Brooksville, Ky. Additions: First National Bank, Williamsburg, Ky. Farmers National Bank, Arcanum, Ohio. Trustee and registrar of stocks and bonds: Withdrawals: City National Bank, Columbus, Ohio. First National Bank, Munhall, Pa. DISTRICT NO. 5. DISTRICT No. 5. Withdrawals: Trustee, executor, administrator, and registrar of stocks Enterprise National Bank, Laurens, S. C. and bonds: Farmers & Merchants National Bank, Lake City, S. C. DISTRICT NO. 6. Additions: Edisto National Bank, Orangeburg, S. C. National Branch Bank of Kentucky, Frankfort, Ky. DISTRICT No. 7. Withdrawals: Trustee, executor, administrator and registrar of stocks First National Bank, Brownsville, Tenn. and bonds: DISTRICT NO. 11. First National Bank, Casey, 111. Additions: Milliken National Bank, Decatur, 111. Farmers & Merchants National Bank, Achille, Qkla. State National Bank, Bloomington, 111. Withdrawals: Citizens National Bank, Kokomo, Ind. First National Bank, Aylesworth, Okla. Mrst National Bank, Humboldt, Iowa. First National Bank, Bokchito, Okla. Trustee, executor, and administrator: Durant National Bank, Durant, Okla. -First National Bank, Moweaqua, 111. First National Bank, Kenefick, Okla. First National Bank, Indianola, Iowa. Hall County National Bank, Memphis, Tex. Oskaloosa National Bank, Oskaloosa, Iowa. First National Bank, Sonora, Tex. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
FEBRUARY 1, 1916. FEDERAL BESBRVE BULLETIN. 71 LAW DEPARTMENT. The following opinions of counsel have been Government to pay any notes issued to it authorized for publication by the Board since which are presented to the Treasurer for rethe last edition of the Bulletin: demption before the Government will issue such notes to the applying bank. In other Transportation Charges ©n Federal Reserve Notes. words, the Government merely undertakes to Each Federal Reserve Bank must pay all expenses incilend its credit to the Federal Reserve Bank dent to the issue and retirement of its own Federal Reserve upon the bank's furnishing the necessary senotes, including transportation charges on notes returned to the bank of issue from any other Federal Reserve Bank curity provided for in the Act. This security or from the Treasury of the United States where they have consists of commercial paper in an amount been redeemed. equal to the face or par value of the. notes issued JANUARY 18, 1916. to the bank, such commercial paper being SIR: I have carefully read your letter of the deposited with a duly authorized agent or cus- 11th, submitting for consideration by this office todian designated Federal Reserve Agent. the question of expense involved in returning Section 16 of the Federal Reserve Act pronotes redeemed either by the Treasurer or by vides in part that— one of the Federal Reserve Banks to the Federal Reserve Bank of issue. Notes presented for redemption at the Treasury of the United States shall be paid out In order to answer the specific questions subof the redemption fund and returned to the mitted, it is necessary to consider those pro- Federal Reserve Banks through which they visions of the Act which relate to both the issue were originally issued, and thereupon such and redemption of these notes. Some con- Federal Reserve Bank shall, upon demand of fusion of thought results from the fact that the the Secretary of the Treasury, reimburse such redemption fund in lawful money; or, if suchr Act provides for two distinct stages of issue Federal Reserve notes have been redeemed by and two, and possibly three, stages of redempthe Treasurer in gold or gold certificates, then tion. such funds shall be reimbursed to the extent It must be remembered that under the terms deemed necessary by the Secretary of the of the statute a Federal Reserve note is an Treasury in gold or gold certificates, and such Federal Reserve Bank shall, so long as any of obligation of the United States; that is to say, its Federal Reserve notes remain outstanding, it is a promise by the United States to pay to maintain with the Treasurer in gold an amount the holder on demand a fixed amount in gold. sufficient in the judgment of the Secretary to This note may be said to be issued as soon as provide for all redemptions to be made by the this obligation is created, or, in other words, Treasurer. as soon as the liability of the Government to It thus appears that the Federal Reserve pay upon presentation the amount stipulated, Bank through which these notes are issued unhas become fixed. It is in determining this dertakes the redemption of such notes whether stage of issue that confusion first results. this redemption takes place at its own counter, These notes are prepared by the Bureau of at the counter of another Federal Reserve Engraving and Printing and stored in the Bank, or at the office of the Treasurer of the Treasury or subtreasuries or mints of the United States. United States. So long as they remain in When the Federal Reserve Bank places these storage no obligation has been created on the notes in circulation and they come into the part of the United States, and the notes can not hands of third parties, the holders or owners of be said to have been issued. When a Federal such notes may present them for redemption— Reserve Bank applies for an issue of such notes (a) To the Federal Reserve Bank of.issue; under the terms of the Act the applying bank (6) To any other Federal Reserve Bank; or, must undertake to furnish the gold to the (c) To the Treasurer of the United States. 23914—16 4 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
72 FEDERAL RESERVE BULLETIN". FEBRUARY 1, 1916. If they are presented to any Federal Reserve Section 16 provides in part that— Bank other than the bank of issue and are The expenses necessarily incurred in executeither redeemed in gold or lawful money or ing the laws relating to the procuring of such credited to the account of the owner pre- notes, and all other expenses incidental to their issue and retirement, shall be paid by the Fedsenting them, such Federal Reserve Bank is eral Reserve Banks. required by law to return them to the Federal This has been construed to mean that each Reserve Bank of issue for redemption. In bank pays the expenses incident to the issue doing this the Federal Reserve Bank receiving and retirement of its own notes and so whether such notes, either for credit or for redemption the transportation charges are included in the in lawful money, is performing a service for assessment levied by the Federal Reserve the Federal Reserve Bank of issue which has Board or not the Federal Reserve Bank of undertaken to furnish funds for the redemption issue should be required to defray this expense. of such notes and it is, in effect, acting as the Respectfully, agent for the Federal Reserve Bank of issue. For this service it not only does not receive any M. G. ELLIOTT, Counsel. compensation but incurs some expense, since it To Hon. CHARLES S. HAMLIN, loses the use of its funds during the period that Governor Federal Reserve Board. such notes are being returned to the Federal Reserve Bank of issue. Right of a National Bank to Increase the Amount of Its It seems clear, therefore, that the Federal Circulating Notes. Reserve Bank of issue, for which this service is There are no provisions of law which prohibit a national performed, should defray all expenses of trans- bank from increasing the amount of its outstanding circuportation. lating notes merely because it has withdrawn circulation In like manner, where notes are redeemed by since the passage of the Federal Reserve Act under the provisions of section 18 of that Act. the Treasurer of the United States, the Treasurer is performing a service for the Federal DECEMBER 4, 1915. Reserve Bank of issue and all expenses incident SIR: I have your memorandum asking— to such redemption should be borne by that (1) Is there anything in the Federal Reserve bank. Act or in its construction by the Board or the Answering specifically the questions sub- Treasury that prohibits a national bank from mitted by you, this office is of the opinion— increasing its circulation over the amount it (1) That the Act clearly contemplates that has outstanding? each Federal Reserve Bank must redeem its (2) Is there anything that prohibits a own notes and the notes of any other Federal national bank which has since the passage of Reserve Bank. the Act withdrawn circulation from again (2) That no distinction is made by the Act taking out circulation up to or beyond the between the receipt of Federal Reserve notes amount it had outstanding when the act was in due course of business and the receipt of passed ? such notes for redemption. The duty per- In reply I beg to advise that the provision of formed for the Federal Reserve Bank of issue the Federal Reserve Act which amends the is the same in either case and the expenses in- the previous statutes relating to circulation cident to the return for redemption or credit reads as follows: should, in both cases, be borne by the Federal SEC. 17. So much of the provisions of section Reserve Bank of issue. fifty-one hundred and fifty-nine of the Revised (3) Where Federal Reserve notes unfit for Statutes of the United States, and section four of the Act of June twentieth, eighteen hundred circulation are returned to the Comptroller for and seventy-four, and section eight of the Act cancellation and new notes issued, the expenses of July twelfth, eighteen hundred and eightyof this new issue are paid in the same manner two, and of any other provisions of existing as in the case of an original issue. statutes as require that before any national Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
FEBRUARY 1, 1916. FEDERAL RESERVE BULLETIN. 73 banking association shall be authorized to To exercise by its board of directors, or duly commence banking business it shall transfer authorized officers or agents, subject to law, and deliver to the Treasurer of the United all such incidental powers as shall be necessary States a stated amount of United States regis- to carry on the business of banking; by distered bonds is hereby repealed. counting and negotiating promissory notes, drafts, bills of exchange, and other evidences of It will be observed that this section repeals debt; by receiving deposits; by buying and only those provisions of certain statutes which selling exchange, coin, and bullion; by loaning " require that before any national banking money on personal security; and by obtaining association shall be authorized to commence issuing, and circulating notes according to the banking business it shall transfer and deliver provisions of this title. to the Treasurer of the United States a stated The power to write insurance, act as insuramount of United States registered bonds.7? ance agent or broker, is not specifically enu- The effect of this amendment is that national merated in this section, and unless such banks are not required as a condition precedent business can be considered as incidental to to doing business to take out circulation, but it some of the enumerated powers of national does not provide that banks which do take out banks it is illegal and prohibited by implicacirculation shall not be subject to those statutes tion as clearly as if by expression. (Logan which contain the conditions and limitations County National Bank v. Townsend, 139 U. S., relating to the issue of national-bank notes. 67.) In answer to your inquiries, therefore, it is In Farmers & Merchants National Bank v. the opinion of this office that national banks Smith (77 Fed., 129) it was held that it is not may increase their circulation to an amount within the powers of a national bank to engage equal to the capital stock of such banks by in the business of selling mortgage bonds on deposit of the necessary bonds and that this commission. may be done whether a national bank has re- Circuit Court Judge Thayer, on page 137, duced its circulation since the passage of the said: Federal Keserve Act or not. I understand The brokerage business is entirely distinct that this practice is being approved by the from the business of banking which it was auoffice of the Comptroller of the Currency* thorized to transact. If a national bank can lawfully act as a broker in selling farm mort- Respectfully, gages for a commission, no reason is perceived M. C. ELLIOTT, Counsel. why it may not act in the same capacity in To Hon. CHARLES S. HAMLIN, selling any other species of property, real or Governor Federal Reserve Board. personal. The national bank act does not, in terms, or by necessary implication, authorize national banks to act as brokers in negotiating the sale of securities, and it is generally agreed Eight of a National Bank to Write Insurance Through that they can not lawfully engage in such Its Officers. business. National banks have no express or implied power to write fire, cyclone, liability, or other kinds of insurance, In Pepperday v. Citizens National Bank (183 or to receive the profits from insurance contracts entered Pa. St., 519, 524) the Supreme, Court of Penninto by its officers. sylvania said: JANUARY 13, 1915. It is no part of the business of a national SIR: The question has been raised whether, bank to engage in the selling of stocks for anyit is lawful for the officers of a national bank to body. It was a transaction outside of its write fire, cyclone, liability, and other kinds of regular banking business and not within its chartered powers. insurance, all the profits derived from such business being turned into the bank. In Weckler v. First National Bank (42 Md., The powers of national banks are defined by 581) the court said, on page 593: section 5136, United States "Revised Statutes Nor can we perceive it is in anywise neces- Article VII of which provides: sary to the purpose of their existence, or in any Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
74 FEDERAL RESERVE BULLETIN. FEBRUARY 1, 1916. sense incidental to the business they are em- Consolidation of Two or More National Banks—Right to powered to conduct, that they should become Operate Branches. bond brokers or be allowed to traffic in every A national bank may purchase the assets of other species of obligations issued by the innumer- liquidating national banks, but such consolidation does able corporations, private and municipal, of not give the right to such national bank to operate branches the country. anywhere in the United States. By analogy it would seem that writing in- JANUARY 8, 1916. SIR : The following question has been referred surance on commission is in no sense incidental to this office for an opinion: Whether the to any.of the enumerated powers of a national Federal Reserve Board would permit the bank. establishment of branch banks under the It is contended that the national bank, in following circumstances: the instance under consideration, is not acting as agent for the insurance company, but that "The capital of the A National Bank, at present, is $300,000, and it is contemplated its officers write the insurance in their Indiincreasing the capital to $500,000. In doing vidual capacities and turn in all the profits to so, it is proposed to take over, with the inthe bank. creased capital, the present capital stock of If the bank receives all the profits of writing the B National Bank, which is $100,000, and the insurance, its officers are, in substance, the O National Bank, which is $50,000.. The acting as agents for the bank, and the bank is balance of the increase in the capital stock of estopped to deny that it is engaging In the the A National Bank to be distributed as the insurance business. stockholders elect." In Schuyler National Bank v. Gadsden (191 It is not entirely clear, from the question U. S., 451) it was held that the taking of realsubmitted, just what method of procedure is estate security by the president of a national proposed. If it is contemplated that the A bank in his individual name for the benefit of National Bank, as a corporation, is to become the bank was in legal effect but the taking of the purchaser of the stock of the other two security by the bank itself, and the president banks, such an arrangement would be contrary acted as its agent. to the provisions of the national-bank act, Where a national bank retains and enjoys which do not permit national banks to hold the proceeds of a transaction, it is estopped to stock in other corporations. If, on the other deny that the act of the officer who enters into hand, it is proposed to purchase from the B the transaction Is its own. (Peoples Bank v. National Bank and the C National Bank their National Bank, 101 U. 3., 181.) National banks, assets, paying therefor with stock in the A as such, must of necessity act through their National Bank, such a course will involve the officers or other agents. liquidation of the two banks purchased, and Inasmuch, therefore, as this class of business the A National Bank, as the surviving cordoes not come within either the expressed or poration, can not, under the law, establish implied powers of national banks, an adminisbranches in the city in which it is located or trative board or officer can not authorize it. anywhere in the United States. Any such extension of the powers of national I am of opinion, therefore, that the plan banks must be left to the consideration of submitted can not be carried out' without Congress. violating the provisions of the national-bank Respectfully, act. Respectfully, M. C. ELLIOTT, Counsel. M. 0. ELLIOTT, Counsel. To Hon. C. S. HAMLEST, To Hon. CHARLES S. HAMLIN, Governor Federal Reserve Board. Governor Federal Reserve Board. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
FEBRUARY 1, 1916. FBDEEAL RESERVE BULLETIN. GENERAL BUSINESS CONDITIONS. and $192,350,968 for the week ending December 18, 1915. General business and banking conditions are described in reports made by Federal Reserve Building and engineering operations in New Agents for the 12 Federal Reserve Districts/as England from December 15, 1915, to January of approximately January 22. 12, 1916, were $14,789,000, the largest for Below are given in detail digests of. conditions over 10 years, and an increase of $8,686,000 in the various districts substantially as reported over the same period last year. by Federal Reserve Agents. Exports at the port of Boston for December, 1915Vwere $10,805,887, an increase of $499,782 DISTRICT NO. 1—BOSTON. over December, 1914, and over double those .of Business has. continued its upward trend December, 1913. Imports at the port of Bosthroughout the month and improvement is reton during December, 1915, were $18,905,580, ported in nearly all-lines of trade. The longer an increase of $10/527,432 over the same established and more conservative merchants, month last year, and $6,087,890 more than in however, are proceeding with caution. Manu* December, 1913. facturers are scrutinizing orders and there is a very general inclination to restrict production Receipts of the Boston post office for Decemto actual requirements, refraining from any- ber, 1915, show an increase of over $70,000 or thing bordering on speculation. about 8 per cent over December, 1914. The The labor situation is again causing uneasi- first 15 days of January, 1916, show an increase ness, largely due to the fact that certain.manu- over the same period last year of $47,423, or facturers, more especially those having foreign about 13 per cent. orders on which large profits are expected, are The. two most important railroad systems in yielding to the demand of their employees for this district continue to report increased earnincreases rather than run the risk of having ings; the Boston '& Maine Railroad reporting their output retarded. This influence has un- ''net after taxes" for the five months ending settled labor working on regular domestic or- December 1 as $5,991,179, an increase of $l ; r ders. 828,429 over the same months last, year; and The money market is dull and rates con- the'New Haven reporting "net after taxes" tinue low. Call money is 3 per cent; commer- for the same period as $10,714,858, an. increase cial paper 2\ to 3 per cent for short dates #nd .of $3,041,808. All the railroads in this section 3 to 4 per cent for six months; town notes, six have had much difficulty in handling the inmonths, 2 to 2J per cent, longer periods, 2-J to creased amount of freight offered them, and in 3 per cent; 90-day bankers' acceptances 2 per some cases this has necessitated an embargo. cent upward. There were 85 failures in this district during Loans and discounts of Boston Clearing December, 1915, with liabilities of $977,033 as House banks show a decrease of $4,521,000 compared with 166 failures with liabilities of from last month, and demand deposits have $1,367,200 during the same month last year. increased $164,000 in the same time. The • Both the woolen and worsted mills report inamount "Due. to other banks" on January 15 creased business and are running at capacity. was $128,008,000, an increase of $11,396,000 The heavy-weight season, which is just comduring the last month. The excess reserve of .mencing, opened auspiciously, and the prosthese banks has increased from $31,584,000 on pects are for good business. December 18, 1915, to $43,329,000 on January The boot and shoe industry continues to im- 15, 1916. Exchanges of the Boston Clearing prove,, domestic orders becoming more and House for the week ending January 15, 1916, more a factor each month. The high, price of were $197,134,000 as compared with $157,- leather, the changing styles, and the uncertainty 873,678 for the corresponding week last year of the future, have caused manufacturers to Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
FEDERAL EESEBVE BULLETIN. FEBRUARY 1, 1916. caution tlie retailer against purchasing beyond from the previous year, owing to the withdrawal Ms present needs. of the larger trans-Atlantic liners. Activity is reported in the dry goods market, New York Clearing House banks on January due to the extraordinarily large retail holiday 1.5, 1916, reported loans, etc., $3,263,860,000, trade and the necessity of replenishing depleted deposits $3,510,286,000, and excess reserves stocks of merchandise. $172,518,370. Since November 27,1915, loans, The cotton mills are running full. The etc., have increased $130,625,000, deposits have market for fine and fancy goods is strong, and increased $148,149,000, and excess reserves the mills are well sold up. Buyers are placing have decreased $10,958,970. forward orders, and in some goods there is an Other statistics for December, 1915, comactive demand for early shipments, which are pared with December, 1914, are the following: hard to obtain. There is a good demand for Exchanges through the New York Clearing print cloths at rising prices. Mill men are House $12,331,140,315, an increase of $5,801,anxious for forward orders at present price 464,857. Transactions on the New York Stock levels, with cotton and other manufacturing Exchange: Par value of bonds sold $122,142,000, materials high and rising. an increase of $86,715,000, but decreased The market for bonds is steadier and a large $4,834,000 from the previous month. Transvolume of business is being done, a good de- actions in stocks 13,732,300 shares, an increase mand coming from banks, corporations, and of 11,857,318, but decreased 3,742,463 from private investors. previous month. New incorporations in the Eastern States of companies capitalized at DISTRICT NO. 2—NEW YORK. $1,000,000 or over, $135,125,000, an increase Wholesale, jobbing, and retail trade were all of $29,675,000. New York State failures 347, very active during December, and in the latter with liabilities of $4,606,373, a decrease of 45 trade the holiday business was of record vol- in number and $875,927 in liabilities. New ume. Interviews and correspondence with York City building permits $11,189,188, an many public service corporations, manufac- increase of $7,559,987. Exports from the port turers, and business houses have confirmed the of New York $216,809,179, an increase of marked improvement and unusual activity of $118,939,854. Imports at New York $94,trade and industry reported in recent months. 792,790, an increase of $28,551,429. Some observers have noticed a tendency to Acceptances of the national and State banks overbuy. Collections are generally good. An- and trust companies in this district on Decemnouncements have been made of a number of ber 31, 1915, aggregated $69,635,261. important wage increases. Five million dollars 6 per cent Kingdom of Congestion of export freight traffic in and Norway bonds were underwritten in New York near New York was somewhat relieved last and offered to the public on January 19 at 101J. week by a reduction of approximately 3,000 Renewal rates for call money ranged from cars of export package and piece freight from If to 2 per cent, and the high rates for the day the quantity of the previous week. But the advanced to 2| per cent toward the end of railroads estimate that between 45,000 and December. Time money on collateral was 2\ 50,000 cars of freight are still held up in termi- to 3 per cent for 60 days to 4 months, and 3 to 4 nals or on the tracks. In many cases new per cent for 6 to 12 months' loans. Bankers7 embargoes have been imposed, while old ones acceptances were quoted from 2 to 2f per cent are modified or abolished. and commercial paper ranged from 2f to 3J During the year 1915 there were cleared per cent, with prime six months' notes readily from the port of New York 4,915 ships, an salable at 3 per cent. increase of 873 over 1914. Their tonnage of In December, Sterling exchange quotations 13,094,230 shows a decrease of 457,274 tons at closing rates strengthened from 4.70f to Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
FEBRUARY 1, 1916. FEDERAL RESERVE BULLETIN. 77 4.73f. Paris checks fluctuated between 5.81 fidence in the continuance of the stability of and 5.871. Berlin checks declined from 79| to business conditions. 75J and demand bills on Amsterdam moved One of our industries which has never been from 41J to 43.37. more prosperous than at present is the silk industry. The market value of the 1912 out- DISTRICT NO. 3—PHILADELPHIA. put in Pennsylvania alone is stated by the On account of the belief that much of the Bureau of Industrial Statistics of this State to business, with which the manufacturing plants have been $81,500,000, which is an increase of of this district are now engaged, is of a tem- about $18,000,000 over the value of the product porary character, there is not the underlying in 1911. There has been a steady increase in confidence in trade conditions that the existing the number of plants and the output, so that industrial activity may seem to justify. Ex- the silk industry has become a very important cept for this feeling on the part of the com- one. The demand for silk garments has inmunity, there is no change in conditions from creased so rapidly that at this date most of the those reported one month ago. The great mills are running full time, where labor is holiday trade, and some difficulty in obtaining obtainable, and many are operating day and goods, has emphasized the necessity of dealers night. Considerable numbers of new mills and carrying larger stocks, and increased orders are additions to plants are reported. The throwbeing placed. sters and weavers both report business active Some of the indices as to business conditions with the best prices for a number of years. at this time are as follows: Raw materials, especially dyestuffs, have in- Favorable features.—-Continuance of the un-creased in price, and this is slightly affecting precedented foreign trade; tendency to min- the amount of sales. There is a steady demand mize effects of munition business and empha- for broad silks, the ribbon silk business is still size development of domestic trade; extra depressed. The question of securing labor is a large business in steel and iron products, at serious one, and some of the mills are continuhigh prices; improvement in railroad earnings— ally advertising for help. Earnings are said record figures in some cases; gain in amount of to be satisfactory, and collections good. new building construction; enlargement of Conditions among the laboring classes are many manufacturing plants; 1915 crops better better than for several years. It is generally than 1914; bank clearings running ahead of reported that the demand for skilled labor, 1914; good collections; less unemployment and especially mechanics, exceeds the supply, and increased wages in some industries; brisk retail unskilled labor can secure all the work desired. buying—high priced goods being bought in- A scarcity of unskilled labor is reported from stead of lowest priced; backward deliveries of certain sections, partly due to the exodus of a merchandise. large per cent of foreign labor, because of the Unfavorable features.-—Railroad freight tie- war, and also to the demand for workers in up at eastern terminals, with embargoes on munitions plants in other cities. Wages for all certain classes of freight at certain cities; insuf- classes of labor are good, averaging 10 to 15 ficient railroad equipment to handle freight; per cent higher than 18 months ago. Common lack of ships for foreign trade; high pricQ of laborers,'' pick and shovel men/7 are being paid building materials which may curtail opera- 17 to 20 cents an hour and other laborers of tions; threatened anthracite coal strike and a slightly better grade are receiving 25 to 30 Wilkes-Barre traction strike; rising costs of cents an hour. manufacture, including labor and raw mate- So long as labor is satisfactorily employed, rials, especially dyestuffs; a certain lack of con- the consumption of goods by the workers will Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
78 FEDERAL EESEEVE BULLETIN. FEBRUARY 1, 1916. be large, and general business consequently Post-office receipts in the same cities for Demust be good. cember, 1915, show an increase of 14.1 per cent, the totals for that month being $1,357,018.47 DISTRICT NO. 4—CLEVELAND. against $1,189,513.41 for 1914. The situation in the steel trade may be said There were 2,407 building permits issued in to be the determiner of general business condi- these- six cities in. December, 1915, compared tions of District No. 4. Therefore the reports with 1,640 for December, 1914, representing an on all kinds of business at this time continue to increase of 30.3 per cent in valuations. The be favorable. total valuation of building operations in these Every operation which can turn out either cities for 1915 was $75,978,345, compared with pig iron or steel is running to capacity without a total for 1914 of $70,602,676. satisfying the unusual demand. The price The head of one of the largest coal companies situation is a little feverish, and the high-point in this district reports that the present condiof $1.90 for shapes and bars and. $2 for plates tion of the coal business is superior to any has been reached. Coke is selling at $5. The similar period for 8 or 10 years. unfilled orders; on the books of. the steel cor- Improvement in the railroad situation over poration at the opening of 1916 were 7,806,220 the holiday season in respect to the car congestons, the largest ever reported under the present, tion has permitted freer operations among method. One of the first fruits of this overseveral important industries and has added to swift return of prosperity was the steel strike coal mining and coke production. at Youngstown early in January. It. presented Every form of glass trade is increasing in an ugly situation for a few days, and the settlevolume, with window glass the most active. ment has resulted in an increase in wages Additions and extensions to the plants and new amounting approximately to 10 per cent. works and factories are reported all over the. This with other announced increases means district, especially in the steel and rubber insome falling off in net earnings of the larger dustries. concepis, but with a continuance of present Mercantile lines show continued -strength in volume and prices, profits even with the involume of business. Credit men report lines crease in wages will be satisfactory. in many instances being extended considerably Money is still plentiful-,, the lowest rates ever beyond those heretofore granted, but reports recorded for commercial loans in this district in general show accounts in first-class shape, being offered in the- centers. In. the smaller with no developed evidences of overbuying. communities the demand is spotted. Some The approximate figures of commercial report a good demand at usual rates, while failures in this district as reported by R. G. others report a slow demand at lower rates. Dun & Co. are $773,600 for December, 1915, It is becoming quite the practice in the agri- and $6,716,000 for 1914. cultural districts of Ohio to option or contract The prosperity of the farmers has reflected for sale of land for March .1 delivery. These itself in the making of improvements. Many transactions take quite an amount of. money farmers in this district are building modern and will stimulate demand in, certain localities. houses, barns, silos, and new fencing. The. member banks in. the Reserve Cities of this %he outlook for all lines of industry and trade district- on December 31, 1915, reported total in this district appears reasonably clear for at deposits of $459,014,000,. an increase of$97 ; - least the first half of 1916. 154,000 over December 31, 1914. . The clear- DISTRICT NO. 5—RICHMOND. ings in the six largest cities for the first half of January, 1916, totaled $380,313,140,04, against General business conditions in the Fifth Re- $296,705,763.59 for the same period of 1915, serve District during the past 30 days have an increase of 28.2 per cent. been very satisfactory in almost every line of Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
FEBRUARY 1, 1016. FEDERAL RESERVE BULLETIN. 79 activity. Retailers report tliat routine busi- prospects of better conditions, particularly ness is good, and further advise that holiday where the mills are not called upon to use sales were gratifying in both quantity and dyestuffs. Some properties which a year ago quality. Both city and country merchants bought cotton in quantity at 8 cents a pound are placing orders with manufacturers and or under have shown flattering results. jobbers more freely than for two or three At export points there has been a congestion years, especially in the metal industries. of grain, awaiting shipment, due to the lack In the Carolinas, farmers generally are in of transportation facilities. Given an adebetter position both in relation to their debts quate supply of ocean carriage, both the railand future prospects than for a long time. roads and their terminals can easily care for Last year's crops brought good prices, permit- the situation. Grain is, however, becoming ting wholesale liquidation, while diversification congested under existing conditions and has tended to make farms self-sustaining. A good caused embarrassment not only to the shippers acreage has again been planted in wheat, and of grain but to the railroads and their customwhile many farmers announce their purpose to ers in other lines. One effect has been that plant a large crop of corn, it is possible that ocean freights are now from 100 to 150 per cent with a continuance of the present high prices higher than last year in some directions. For for cotton the acreage of spring planted grains some commodities the increase has been even will be diminished. greater. For the reason that essential chemicals can The corn crop has only begun to move from not be had in supply sufficient to permit the the West, and it is feared that congestion in employment of usual formulae in the manu- the movement, after the grain has reached the facture of fertilizers in normal quantity manu- seaboard, will result in conditions injurious to facturers and consumers during this year will the trade, particularly should another great operate under most unusual conditions. In crop of grains be grown this year. 1915, the farmers used little more than half Money is in plentiful supply throughout the the amount of commercial fertilizer to which district, a condition evidenced in part by the they had been accustomed. The consequence fact that member banks in the district now of forced diminution in the use of chemicals, owe less for borrowed money than is usual even particularly potash, may be shorter crops than in January. The loan line of its reserve bank could otherwise be expected. is now $1,800,000 below its amount as reported The cotton movement has been very light. in August last. Individual banks in the Caro- Its holders are unwilling to sell even at present linas report that they are loaning some share prices. While it is admitted that current of their funds at a rate as low as 4J per cent. quotations mean good profits, it is a very Present very easy conditions are apt to congenerally held opinion that the coming crop tinue until the general spring demands are met wil not be large and that in consequence in March next. prices will further advance. Tobacco growers hold a like opinion, reason- DISTRICT NO. 6—ATLANTA. ing that it would be impossible for them to Reports from business centers in this district make their crops without certain chemicals indicate that the temporary improvement in which they will not this season be able to the fall months has crystallized into a more obtain as usual. permanent p:rosperity. Money is plentiful and Lumber is now in strong position and mills many new industries are reported under way. are committed to advance orders which will Labor is quite fully employed. The railroads keep them busy for some time in the future. are letting contracts for new work, and with Cotton milling on the whole showed fair re- the recent increase in rates it is expected that sults during the past year, with immediate they will make large improvements. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
80 FEDERAL RESERVE BULLETIN. FEBRUARY 1, 1916. There is a strong "undercurrent of optimism In the Savannah naval-stores district there among real-estate dealers following the period is a brighter outlook for the future. Strenuous of great inactivity for the past 18 months. efforts have been made during the past 18 The building records show quite an improve- months with a view to reducing production, ment, and builders have made plans for the the result showing a decrease, and the trade is erection of many large structures in the new feeling the effect of upward prices. At presyear and are confident that the record of the ent the supply of both turpentine and rosin past 12 months will be exceeded by a substan- is assuming a more normal state and the industial margin. try is in a much more healthy condition. Collections are reported as good. Whole- New Orleans reports general conditions salers of dry goods report exceedingly good throughout that section as unusually good. trade for this season of the year, with the state- Interest rates have shown no particular change ment that the only real hindrance is to get hold and are still low, with little demand for loans. of the right kind of goods, owing to the short- The weather has been favorable for cane proage of dyes tuffs and the embargo on wools. duction, and with the considerable increase in The hosiery mills of Tennessee are reported acreage a much larger crop is expected. The running behind on orders. sugar market has shown some improvement In the Chattanooga district nearly all manu- lately and a more active market is expected. facturing plants are running full time. Five Offerings of spot cotton from the interior have new manufacturing plants have been put under been limited and local factors are not offering way within the past month, and it is estimated freely. Cotton at New Orleans in presses are the capital invested represents $1,500,000, 409,805 bales as against 272,430 this date, 1915; giving employment to 2,500 men, on shipboard 34,174 against 89,478 for 1915. In the Birmingham district iron and steel While Liverpool continues to advance owing industries continue to do a big business. More to the actual general demand for cotton by iron is being sold than is being produced, and British spinners and the scarcity of the article the production is the heaviest in the history on the other side of the Atlantic, American of the industry. Prices continue to range markets remain practically at a standstill from $15.50 to $16.50 per ton. All the iron owing to the inability to export cotton because that was sold several months ago at the mini- of lack of shipping facilities and prohibitive mum price has been delivered, so that all iron freight rates. The general cotton market now being shipped is at a good profit. In remains unchanged, with a big holding moveview of the shortage of coke a number of old ment in force. ovens have been put in operation. New ore The domestic lumber market continues to mines are being opened. In the steel plants advance. Increased buying by railroads and all are running at a maximum output, and labor building industries does much to replace the is assured of steady employment in the district. normal export shipment. While the demand In the Tennessee tobacco district very little is yet below possible production the market is of the 1915 crop has been brought to market, in a much more healthy and stable condition with a considerable percentage of the 1913 and and present prices permit profitable production, 1914 crops still in the warehouses. The grade with tendency to higher levels. Altogether of the 1915 tobacco is below the average, and the outlook in this line is encouraging. while the prices obtained are comparatively low with last season they are considered fairly DISTRICT NO. 7—CHICAGO. good for the quality of tobacco. In view of Reports in the Seventh Federal Reserve the good-sized crop and low grade a decline District indicate generally increasing activity. is expected in prices. Shipment to foreign The large steel companies show a demand in countries is hampered by lack of shipping facili- excess of the capacity of the mills, with prices ties and high freight rates. proportionately firm. Building is quite active, Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
FEBRUARY 1, 1916. FEDEBAL BESEBVE BULLETIN. 81 noticeably so in those localities which are bene- manufacturing and retail departments, with fiting by the present conditions, while other the likelihood of an increase in price owing to cities report improving prospects. Lumber is the higher cost of materials. more in demand, prices are better, and a still Coal mining in Illinois is active, due to the further improvement is anticipated. requirements of the steel and allied industries. Study of the grain markets shows that prices The agreement of the United Mine Workers have been well maintained, due to a good de- with the coal operators expires April 1 next, mand from abroad, the speculative sentiment and a considerable quantity of coal is being of the farmers, and the possibility that before purchased for storage by the railroad comlong Europe will require some of our corn crop. panies. The freight movement in this district One interesting comment is to the effect that is heavy considering the car shortage. the statisticians figure, as a general rule, the Chicago clearings from January 1, and in- United States, Canada, Australia, and Argen- cluding January 19, showed an increase over tina have between them about 250,000,000 the same period last year of more than bushels of wheat more than the importing $100,000,000, while 18 other cities in the countries which can import will require. district showed clearings for the first 15 Winter wheat is reported as in satisfactory con-* days of January of $201,000,000, as against dition, with an acreage slightly less than last $162,000,000 for the first 15 days in 1915. year, but it is too early to make an accurate Large Chicago savings banks report smaller forecast as to the result of the crop. proportionate withdrawals during the course The movement of live stock to market is of the January interest period than has been heavy, with good prices and a steady demand. the case in some years. One authority advises us that the supply of A survey of the situation shows improvehogs in the district has been large, but they ment in almost all lines, although Iowa is sufhave been marketed freely, which may cause a fering somewhat from the result of its partial shortage next summer. crop failure last year. This is being noticed in The wholesale dry-goods business is brisk, some localities by collections below normal, with purchasers anticipating their wants on without distinct promise of present improveaccount of the possibility of higher prices and ment. The other States are faring better, scarcity of merchandise. Dyed and printed with collections from fair to good. goods are in short supply, wool is scarce, and DISTRICT NO. 8—ST. LOUIS. this may have the effect of retarding the volume of business next fall unless the situation is re- The healthy, prosperous business condition lieved. Inclement weather has somewhat de- which has developed in this district in the creased the business of the Chicago department past few months continues. Reports received stores of late, but the trade as a whole reports from practically every branch of industry in increasing retail purchases, and collections are the district show a general increase in shipsatisfactory. The grocery business claims ments. In only a very few cases have shipimproving prospects, although many sections ments been reported below the normal, and report that it is barely normal. Hardware is many firms report gains as high as 40 per cent. in good demand, and furniture manufacturers Reports made to this office contain many are optimistic in view of increased orders. statements such as: Automobile sales are well maintained, and it is Fort Smith.—On account of the1 large feed the general impression that this section will, at crop which we have in this section, we feel least for the coming year, continue to absorb a that our community is at least 30 per cent substantial number of cars. better off than it has been since the 1910 crop. The piano business, usually a good trade Little Rock.—Shipments increased 25 per barometer, indicates an improvement in the cent. Another report says: Collections 10 per Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
82 FEDERAL RESERVE BULLETIN". FEBRUARY 1, 1916. cent better this year. Past due accounts 20 district, and the movement of freight toward per cent less. the east is somewhat hampered by lack of Louisville.-—The last three months of 1915 terminal facilities. especially showing an increase over any corre- Building permits also show substantial sponding month of any year before. increases, St. Louis alone reporting a gain of Memphis.—Our business 33J per cent in- about 68 per cent for December, 1915, as comcrease in December, and collections about 40 pared with the same month a year ago. This per cent increase. Another report says: Past revival, of course, affects the business of due accounts considerably fewer than the three- lumbermen, contractors, hardware, and allied year average. lines. St. Louis.—Shipments 120 per cent and col- The decrease in the number and total of lections 119 per cent of average last three liabilities of commercial failures in 1915 furyears. Another report says: Sales for Decem- nishes a striking index to business conditions. ber 43 per cent above normal. Retail merchants throughout the district Period. Number. Liabilities. experienced a large and profitable holiday trade. They report that the attitude of their First quarter... 1,413 $33,000,000 Second quarter. 1,047 13,000,000 customers has changed. A few months ago, Third quarter.. 936 9,885,000 Fourth quarter 928 8,000,000 the general public was buying the more popular priced and cheaper grades of merchandise, whereas to-day they are making their selec- While the total number of failures for the tions from the better grades. The customary entire year is greater than either 1913 or 1914, reaction after the holidays does not seem to be it appears that the total of the liabilities has as severe as usual. been very materially decreased. The public utility companies report an The banking interests of the district still increase in the total number of passengers hold excess reserves, particularly in the larger carried for every quarter of the year. This centers and are in excellent position to take fact seems to be of some significance, for the care of all legitimate business demands. In prevailing opinion is that the general use of fact, the larger banks are actively in the automobiles has affected the street car compa- market for commercial paper, and in many nies, especially in the smaller cities and the cases have been forced to invest their surplus interurban lines. funds in bonds and other securities in which A study of the gross and net railroad earn- they do not normally invest. There has been ings for December furnishes additional testi- no increase in bank rates to customers or on mony as to the general revival of all business. commercial paper. The bank rate to customers Practically all of the railroads operating in this in the larger centers seems to be fixed at 4J district show increases both in gross and net to 5 per cent, with the rate in smaller comearnings for December. This is particularly munities somewhat higher and subject to local true of the railroads operating in the northern conditions. section, where really substantial gains have Commercial paper is selling freely at 3 and been made. Authorities on railroad opera- 3\ per cent, and brokers report a scarcity of tions contend that while a part of this gain available paper. The bond market shows the represents a recovery of the loss in 1914, the influence of bank purchases and is correspondimprovement far outshadows the falling off, ingly active. and this is at least in part due to the fact that In December this bank cleared 202,876 items railroads are operating on the economical basis for a total of $84,559,718.57, by far the biggest which they were forced to establish a year or month both as to number of items cleared and more ago. There is a shortage of cars in this total of amount. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
FEBRUARY 1, 1916. FEDERAL RESERVE BULLETIN. 83 DISTRICT NO. 9—MINNEAPOLIS. ago, an increase of 66,094,000 bushels. Even Business in all lines is on a very solid founda- with this remarkable increase in receipts eletion, with large orders ahead and output guar- vator stocks are still behind last year, amountanteed for at least the first half of the year. ing to 25,863,000 bushels, as against 27,146,000 This is especially true of the flour-milling in- bushels, and as against 31,371,000 bushels in dustry, the iron and steel concerns, and the 1914. Terminal stocks have been increasing lumber and paper mills. during the month, but are still very far short The Comptroller's call of December 31 of capacity. Flour production is still very showed a good increase in loans and discounts heavy. of the banks at the larger centers in this dis- The price situation as to wheat is remarkable. trict, and since the first of the year there has Cash grain has commanded a premium since been an obvious improvement in the demand the beginning of the crop year, and while the for money, but without changes in rates, daily fluctuations have been erratic each which are still at a very low level. week has brought an advance. Farmers who The Calumet & Hecla has announced 10 have been and are holding wheat have realper cent wage increases guaranteed until June ized excellent profits. In the face of very 1, covering 12,000 men in the northern Michi- heavy receipts, the price has stubbornly adgan copper industry. The Steel Corporation vanced by degrees, with no present indications has made a similar announcement covering its of receding. The very favorable market has northern Minnesota mines, and the larger inde- put an immense sum of money into the hands pendent operators have taken similar action. of the farmers, and this is reflected in good Increases have been granted by a number of collections and active trade at country points, smaller concerns, and labor is fully employed with a correspondingly beneficial influence at good wages. upon wholesale lines. The lumber business is the last to return to DISTRICT NO. 10—KANSAS CITY. a normal basis, but is very active. The mills are working full time against orders which Weather conditions prevailing generally guarantee large production for practically all throughout District No. 10 have been seasonal of 1916. The local yards, which bought cau- and normal. Heavy snows, which are so tiously during all of 1915, find their stocks essential to the growth of winter wheat and to are low, and are buying freely. Prices have furnishing a supply of water for irrigation puradvanced $3 to $3.50 per thousand on the poses during the ensuing summer, have fallen in grades representing the larger volume of sales, almost all parts of the district, and there has with still better advances on better grades. been no untimely or|excessive cold. Cattle and hogs on soft-corn feed have not The movement of grain to the market centers done well, and the immense forage crop proves has been accelerated during the past 30 days, to have only a moderate value. As a result and while it has not been abnormal, it has been there have been very heavy shipments of light a movement which has been retarded up to this hogs and cattle to the South St. Paul and time by reason of farmers holding their wheat Chicago markets, and many farmers have and other grains for higher prices. been forced to bring in corn at 75 cents to This movement of grain to the markets has carry sttick through the winter. There will caused considerable liquidation, has added probably be a shortage of spring beef, and the largely to the deposits in the banks of the dismarketing of light hogs is an unfavorable con- trict, and has lessened the demand for money. dition, indicating future high retail prices. Most of the banks of the district|have an excess Crop-year receipts at Minneapolis and Du- of loanable funds and are amply able to take luth aggregate 184,009,000 bushels of grain, as care of legitimate requirements of their^eusagainst 117,915,000 for the same period a year tomers. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
84 FEDEBAL RESERVE BULLETIN. FEBRUARY 1, 1916. Rates of discount show no material change The district is practically free of labor disduring the past 30 days and rule from 5 to 8 turbances, and while there are some idle men per cent according to locality and security in the large cities of the district, as is always offered. the case at this season of the year, all lines of Probably at no previous time in the history labor, both common and skilled, are very of the district has the wholesale and retail trade generally employed. assumed such large proportions. The holiday DISTRICT NO. 11—DALLAS. trade was unprecedented and cash was paid for most purchases, and all lines of industry The general outlook in this district is optimismreport exceptionally good collections. tic. Preparations for the 1916 crops are under The movement of live stock to the market way, and if the weather permits, rapid progress centers is normal with prices fairly satisfactory will now be made in this direction. There are except upon dressed beef cattle. Unless there a few reports that the recent cold weather has is an improvement in prices, cattle feeders will killed some small grain, but they are not suffialmost without exception lose upon the season's cient to affect the crop outlook generally. operations. There is an abundance of forage It is, of course, too early to make a forecast and grain and the winter loss will be very much as to the fruit crop. The cold of the past month, below the average. however, has been sufficiently severe to do Kansas City is probably the world's largest some damage to the citrus fruits and vegetable hay market and this year the market has been gardens of southern Texas. The cold weather peculiarly active, both in the assembling of was beneficial in destroying the insect pests supplies and in their distribution. Alfalfa that are always harmful in the agricultural from Kansas, Colorado, Nebraska, Wyoming, districts during mild winters. and New Mexico is marketed at this center and Optimism prevails among manufacturers. distributed throughout the New England While this district has not benefited as much States, the Carolinas and Virginias, and Gulf as some of the others in recent heavy pur- Coast States, as well as all intervening terri- chases of saddlery and harness, horses and tory. Prairie hay from Kansas, Colorado, mules, its normal output has been materially Oklahoma, and Nebraska is regularly handled increased. There has been a good demand for here, and this city has supplied at different goods locally and factories are running on full times almost every important market in the time. country, North, East, and South, and has Member banks continue to experience only exported to Cuba, Isthmus of Panama, the a normal demand for loans. This is to be ex- Philippines, and to Europe. pected at this season, and it will probably be The receipts of hay for the crop year of 60 days yet before this condition changes. 1914-15 aggregated about 35,000 cars, and, in There has been very little change in rates duraddition to this, there were about 10,000 cars ing the past month, and they continue easy. handled by Kansas City firms direct from pro- Statements of our member banks show largely ducers to consumers. increased deposits over last year. Comparison The mid-continent oil field continues ex- of the deposits of the banks in the Texas receptionally active. New leases are being taken serve cities alone, excluding nonmember banks, and an unusual amount of drilling and pros- shows an increase of approximately $28,000,000 pecting is under way. The demand for tim- over 19.14. A large increase in clearings is also bers and structural steel is strong, occasioned reported from practically all of the larger cities by the high prices being paid for the crude of the district. Dallas banks showed an inproduct. The prevailing price in this field is a crease of approximately $48,000,000 over a trifle in excess of $1.20 per barrel. year ago. High prices for lead and zinc have stimulated All sections of the district report a holiday production and this industry is experiencing trade almost unprecedented in volume, and the greatest prosperity in its history. the demand for high-grade goods was especially Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
FEBRUARY 1, 1916. FEDERAL RESERVE BULLETIN. 85 noticeable. Our information is that in many- a rainfall materially above the seasonal averinstances stocks were almost cleared, and age at this date. There is also an unusual wholesalers have enjoyed one of the largest depth of snow in the mountains, assuring irriseasons in their history. Collections are re- gation next summer. ported, as improving and are above the average Reports from throughout this district confor this season. firm the harvesting and profitable marketing Reports from Oklahoma indicate that prac- of large crops during the past year, with a contically all the cotton crop has been marketed. sequent general expansion of trade not infre- In Texas, however, it is estimated that 25 per quently reaching new records in volume and cent of the crop is still held. It is not thought profits. Wheat, barley, sugar beets, hops, that there will be any material reduction in the beans, oranges, prunes, raisins, apples, have all acreage in 1916. given good net profits to growers. Table grapes Good prices are obtaining for rice, and it is were also profitable, approximately 10,000 carbelieved that 65 to 75 per cent of the 1915 crop loads being shipped by California alone. Peach has passed from the farmers' hands. The bal- and apricot growers have profited less, but are ance is being held for higher prices. Eough now organizing for cooperative marketing to rice is active at present prices, but clean rice secure more economical and uniform distribuis not moving so well. tion. In this they have adopted the success- Operations in the oil fields of the district con- ful methods of growers of citrus fruits and tinue active, and the prices obtaining are the raisins. Alfalfa is said to have yielded as best in the history of the fields. Production much as $15 per ton when fed to stock. in the northwestern Louisiana districts, com- Live-stock interests are doing well. posed of Caddo, Red River, and De Soto Par- The petroleum industry of California is beneishes, amounted in the aggregate to 14,881,022 fiting by advancing prices, occasioned both by barrels, compared with 12,210,598 barrels in broadening markets and expanding consump- 1914. Present prices for the product are stimu- tion, and by a decline in production of 13,000,lating operations. 000 barrels last year, as compared with 1914. Railroads report an increase in freight Metal mining—gold, silver, copper, lead—is very traffic of 15 per cent over the previous year. active. Passenger traffic is good, and shows a slight The stimulus which activity of one industry increase over the corresponding period last transmits to another is well illustrated by the year. purchase for Arizona mines of 10,000,000 feet Larger cities of the district report an increase of timbers. Important purchases of lumber, in post-office receipts of approximately 25 per particularly for mines, railroads, and for excent. port to Australia, have advanced prices from Recent bad weather conditions have affected $1 to $3 per thousand, and brought much enbuilding operations. Considerable work is couragement to the lumber sections. From under way, and with open weather prevailing 100 to 150 sailing vessels are now carrying there should be renewed activity. lumber from Pacific coast ports to Australia, Labor continues in good demand, and there and a number of vessels are building for this is no evidence of any unemployment. trade. All shipyards are exceedingly busy and rapidly extending their operations. DISTRICT NO. 12—SAN FRANCISCO. The Comptroller's last call shows an increase Pacific coast precipitation is principally in- of more than $80,000,000 in deposits in the cluded in four months, December to March, national banks of the seven reserve cities of with annual averages ranging from approxi- this district during the past year. Conservamately 16 inches at Los Angeles to 35 at Seat- tism is evidenced by the fact that loans and tle. Abundant precipitation is counted a sure investments during the same period increased forerunner of good crops, a confident expecta- only $8,000,000. Credit conditions are contion of which for the current year is based upon sequently easy. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
86 FEDEBAL EESEEVE BULLETIN. FEBRUARY 1, 1916. DISTRIBUTION OF DISCOUNTS BY SIZES for Atlanta and New Orleans and $2,430 for AND MATURITIES- Chicago. About 36.5 per cent of the total number of The total of commercial paper, exclusive of bills and 49.6. per cent of the total amount bankers7 acceptances, discounted during De- discounted during December were bills in cember, 1915, amounted to $15,412,000, a amounts ranging between 1,000 and 5,000 total of 15 per cent below the total for Novem- dollars. Bills of the largest size (i. e., in ber, but larger than for any other month of the amounts over $10,000) constituted 17.6 per past year. Of the total amount of discounts cent of the total discounts for the month, as reported, the share of the three southern banks against 22 per cent shown for the month before. was 62.3 per cent; the share of Kansas City, In the case of Atlanta and its New Orleans 11.7 per cent; and that of Chicago, 14.4 per branch the share of these largest-size bills was cent. Out of the 12, only 5 banks appear to 31.3 per cent of the monthly total, being largely have been active in the rediscount field during commodity paper secured by cotton and disthe report month, these 5 banks reporting counted at the 3 per cent rate. Small bills (in 88.4 per cent of the total discounts granted denominations up to $250) constituted over 19 per cent of the entire number, though less than during the month by all the reserve banks, 1.5 per cent of the total amount of the paper as against 86.7 per cent in November. Chicago discounted during the month. The Richmond is the only bank which reports a considerable bank reports 571 and the Atlanta bank 387 of increase in discounts for the past month. such bills. Over 60 per cent of the number Commodity paper, $2,939,500, mostly seand amount of all small bills discounted during cured by cotton, constitutes 19.1 per cent of the month were handled by these two banks. the total discounts for the month, compared with 23.9 per cent for November, and 13.7 per Of the total amount of paper discounted durcent in October. About 62.2 per cent of this ing December, 1.9 per cent was 10-day, 16.4 per paper was handled by the Atlanta bank and cent 30-day, 32.9 per cent 60-day, and 34.2 its New Orleans branch and 30.5 per cent by per cent 90-day paper. Over 2.25 millions, or the Richmond bank. A total of $514,000 of 14.6 per cent, was agricultural and live-stock trade acceptances was discounted during the paper, maturing after 90 days at the time of month by six banks, and in addition $31,600 rediscount. The largest amounts of 10-day of this class of paper was purchased by the and 30-day paper were discounted during Boston bank in the open market. December by the Chicago bank. Richmond The total of paper discounted during the reports the largest amounts of 30-day and past calendar year by the 12 banks was 60-day paper, while Dallas leads in the amount $161,353,000, of which about two-thirds was of 6-month paper handled during the month. handled by the three southern banks, less than The number of member banks which redis- 20 per cent by the four western banks, a little counted with the Federal Reserve Banks during December was 725, compared with 837 in Noover 10 per cent by the four eastern banks, vember, 796 in October, and 762 in September, and 4.6 per cent by San Francisco. and constituted about 9.5 per cent of the The total number of bills discounted during entire number of member banks shown at the the month was 8,095, compared with 9,652 in end of the year. About one-half of the redis- November and 9,285 in October. The average counting banks were southern banks. The size of the paper discounted in December by largest absolute and relative number of banks all the banks was slightly less than $1,904, as accommodated is shown for the Atlanta disagainst $1,893 in November, $1,621 in October, trict, viz, 131 out of 387, or 33.8 per cent of the and $1,249 in June, marking the gradual and total. This total is 50 less than in November, steady increase in the average size of the paper a relative decrease about equal to the relative handled. During the past year the monthly decrease shown for the total amount of paper average varied in the case of the more active discounted by the bank and its branch during banks from $1,500 for Richmond to $2,415 December of the past year. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
FEBRUARY 1, 1916. FEDERAL RESERVE BULLETIN. 87 Commercial paper, exclusive of bankers' acceptances, rediscounted by each of the Federal Reserve Banks during the month of December, 1915, distributed by sizes. NUMBER OF PIECES AND AMOUNTS. [In thousands of dollars.] To $100. O to v e $ r 2 $ 5 1 0 0 . 0 O to v e $ r 5 $ 0 2 0 5 . 0 O to v $ e 1 r , $ 0 5 0 0 0 0 . O t v o e $ 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 $ r 1 0 $ , 5 0 , 0 0 0 0 . 0 $1 O 0 v ,0 e 0 r 0. Total. Per cent. Bank. •S8 Boston 10 2.0 5.3 12.1 11 19.4 96.2 49.0 78 184. 1.0 1.2 New York 31 5.1 11.8 18.3 25 34.7 47.4 14.0 132 131. 1.6 .9 Philadelphia... 31 4.6 14.7 30.6 21 38.8 27.6 148 117. 1.8 Cleveland 15 2.5 7.6 8.9 16 32.5 47.1 21.3 10.2 79 130. 1.0 Richmond . 15713.7 414 73.8 530 212.5 418.7 431 733.9 2951,211.5 749.7 261.72,449 3,675.530.2 23.9 Atlanta 13910.3 248 41.7 219 84.2 173.5 267 478.1 231 953. 694.9 521,110.51,469 3,547.0 18.1 23.0 Chicago 64 4.1 71 12.0 116 46.8 143.1 249 448.0 171 747.4 442.4 377.0 914 2,220.8 11. <14.4 St. Louis 21 3.8 56 21.3 42.6 79 128.3 48 167.0 138.1 72.8 288 574. 3.6 3.7 Minneapolis... 25 4.5 58 21.2 75.7 109 161.1 20 65.9 50.2 30.7 326 409. 4.0 2.7 Kansas City... 80 15.5 129 49.0 159.8 256 401.1 132 507.3 284.4 390.1 888 1,-8 11.0 11.7 Dallas 156 27.3 202 78.6 174.3 290 186 480.4 430.01.,,2112,379.9 15.0 15.4 San Francisco. 1.4 2.1 15.3 51 73.6 14 49.4 58.5 32.6 113 233.0 1.4 1.5 Total.. 458 36.01, 111 194.21,418 555.11,6261,272.91,805 3,037.91,150 4,617.4390 2,982.9 137 2,715.6 8,09515,412.0100.0100.0 PERCENTAGES OF AMOUNTS OF EACH CLASS TO TOTAL. Over Over Over Over Over Over Bank. $ T 10 o 0. $1 to 00 $2 to 50 $5 to 00 $1 t , o 000 $2 t , o 500 $5 t ,0 o 00 $1 O 0 v ,0 e 0 r 0. Total. $250. $500. $1,000. $2,500. $5,000. $10,000. Boston . . . 0.1 1.1 2.9 6.6 10.5 52.2 26.6 100.0 New York .3 3.9 9.0 13.9 26.3 36.0 10.6 100.0 Philadelphia. 1.1 3.9 12.5 26.0 33.0 23.5 100.0 Cleveland 1.9 5.9 6.8 25.0 36.2 16.4 7.8 100.0 Richmond . .4 2.0 5.8 11.4 20.0 32.9 20.4 7.1 100.0 Atlanta. .3 1.2 2.4 4.9 13.4 26.9 19.6 31.3 100.0 Chicago .2 .5 2.1 6.4 20.2 33.7 19.9 17.0 100.0 St. Louis .1 .7 3.7 7.4 22.3 29.1 24.0 12.7 100.0 Minneapolis 1.1 5.2 18.5 39.4 16.1 12.2 7.5 100.0 Kansas Citys. .1 .8 2.7 8.8 22.2 28.1 15.7 21.6 100.0 Dallas .2 1.1 3.3 7.3 20.5 29.3 20.2 18.1 100.0 San Francisco .6 .9 6.6 31.6 21.2 25.1 14.0 100.0 Total .2 1.3 3.6 8.3 19.7 30.0 19.3 17.6 100.0 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
88 FEDERAL RESEBVE BULLETIN. FEBRUARY 1, 1916. Commercial paper, exclusive of bankers' acceptances, discounted during December by each of the Federal Reserve Banks, distributed by States and maturities as of date of discount. [In thousands of dollars.] Paper Paper Paper Number Number Paper maturing maturing maturing Paper Total com- Districts and States. of b m an em ks b . er o a f c b co an m k - s m w at i u th r i i n ng d a a f y te s r b 1 u 0 t d a a f y te s r b 3 u 0 t d a a f y te s r b 6 u 0 t m a a ft t e u r r i 9 n 0 g p m ap e e r r c i d a i l smodated. 10 days. within within within days. counted. 30 days. 60 days. 90 days. District No. 1—Boston: Connecticut..... , 73 1 3.2 13.8 20.0 37.0 Maine. 70 3 4 2 6 0 13 3 23.5 Massachusetts 168 2 25.0 11.0 9.5 39.5 85.0 New Hampshire. 56 1 1.0 2.3 3.3 Rhode Island 18 Vermont 48 2 15.4 3.0 17.0 36.4 Total 433 9 44.6 23.2 41.3 75.1 184.2 District No. 2—New York: 132 1 1.1 5.0 2.2 .5 8.8 New York 483 11 16.6 58.3 47.1 0.9 122.9 Total 615 12 1.1 21.6 60.5 . 47.6 .9 131.7 District No. 3—Phildelphia: Delaware. 24 New Jersey - 70 1 3.5 35.8 39.3 Pennsylvania 534 12 10.1 15.8 26.4 19.0 7.0 78. S Total 628 13 13.6 51.6 26.4 19.0 7.0 117.6 District No. 4—Cleveland: Kentucky 72 2 1 6 11 0 25 7 39 5 77 8 Ohio 375 5 7 5 9.2 13.8 9.6 40.1 Pennsylvania 301 4 6.8 5.4 12.2 West Virginia.. 14 Total 762 11 1.6 25.3 40.3 53.3 9.6 130.1 District No. 5—Richmond: District of Columbia 14 1 10 2 32 9 31.3 74.4 Maryland.. . 98 6 2.8 67.4 96.9 1.0 168.1 North Carolina 81 32 9.7 305.4 583.8 671.4 21.7 1,592.0 South Carolina.... 74 35 12.9 124.4 529.2 496.9 9.2 1,172.6 Virginia 137 32 1.0 87.2 268.0 209.4 50.0 615.6 West Virginia 104 6 5.2 22.0 25.6 52.8 Total 508 112 23.6 535.1 1,503.3 1,531.5 81.9 3,675.5 District No. 6—Atlanta: Alabama 95 31 58 0 245 0 403 0 142.1 848 1 Florida 55 12 5.0 44.4 75.3 158.7 283.4 Georgia 117 52 118 3 650 5 603.6 231.4 1 603 8 Louisiana 5 5 165.0 170.2 335.2 Mississippi . 18 7 12.1 64.7 76.8 Tennessee 97 24 .2 55.0 166.5 174.8 3.2 399.7 Total 387.0 131 5.2 287.8 1,367.0 1,510.3 376.7 3,547.0 District No. 7—Chicago: I I l n l d in i o a i n s a 3 1 1 9 7 7 1 1 3 4 121.5 7 2 6 6 3 . . 0 8 2 1 9 2 5 3. . 2 8 1 5 0 1 1 . . 4 1 3 5 4 8 . . 5 6 1; 3 2 0 6 8 7 . . 9 0 Iowa . ... 348 50 18.9 81.7 266.2 219.2 586.0 Michigan 77 4 31.3 4.3 4.3 39.9 Wisconsin 51 2 12.0 5.0 2.0 19.0 Total . 990 83 121.5 808.7 544.0 428.0 318.6 2,220.8 District No. 8—St. Louis: Arkansas ... : 62 6 6.0 18.5 12.3 5.8 42.6 Illinois 157 11 11.2 39.0 26.6 76.8 Indiana 61 4 17.9 43.9 61 8 Kentucky 69 7 6.3 54.9 21.3 82.5 Mississippi 17 5 85.8 75.0 17.9 178.7 Missouri 81 8 6.2 4.8 15.8 24.2 21.5 72.5 Tennessee 20" 4 .4 19.3 23.8 13.6 2.5 59.6 Total... 467 45 6.6 122.2 217.1 172.2 56.4 574.5 District No. 9—Minneapolis: Michigan 31 1 20.0 20.0 Minnesota 279 26 6.4 22.3 44.6 102.1 175.4 Montana 66 1 4.1 3.1 7.2 North Dakota 152 20 8 3 19 9 22 8 51 0 South Dakota . 119 14 2.6 12.6 18.4 67.7 101.3 Wisconsin 88 19 26.5 10.6 1.5 15.2 54.5 Total 735 81 29.1 17.0 68.8 98.1 .196.4 409.4 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
FEBRUARY 1, 1916. FEDERAL EESEEVE BULLETIN. 89 Commercial paper, exclusive of bankers' acceptances, discounted during December by each of the Federal Reserve Banks, distributed by States and maturities as of date of discount—Continued. [In thousands of dollars.] Paper Paper Paper Number Number Paper maturing maturing maturing Paper Total com- Districts and States. of b m an e k m s b . er m o a f o c d b co a a t m n e k - d s . m 1 w a 0 t i d u th a r i i y n n s g . d a w a f y t i e s t r h b i 1 n u 0 t d a w a f y t i e s t r h b i 3 n u 0 t d a w a f y t i e s t r h b i 6 n u 0 t m a a d ft t a e u y r r s i 9 . n 0 g p c m a o p u e e r n r c t i e d a d i l s . - 30 days. 60 days. 90 days. District No. 10—Kansas City: Colorado 119 2 4 9 12.4 12 0 14.7 44 0 Kansas 220 23 5.0 193.0 249.0 73.1 110.0 630.1 Missouri 53 8 40.0 189.1 266.1 41.2 65.9 602.3 Nebraska - . .. 206 29 17.2 73.8 143.1 65.5 305.6 New Mexico 9 Oklahoma 308 21 9.6 50.9 65.0 100.8 226.3 Wyoming 33 Total 948 83 45.0 413,8 652.2 340.4 356.9 1,808.3 District No. 11—Dallas: Arizona 6 1 1.8 2.5 6.5 9.2 20.0 Louisiana 26 4 6 5 72 1 85 9 164.5 New Mexico 28 7 11.0 7.0 105.4 123.4 Oklahoma ... . . 42 10 7.5 21.2 22.8 24.5 76.0 Texas 545 96 183.7 422.0 743.3 647.0 1,996.0 Total 647 118 210.5 517.8 865.5 786.1 2,379.9 District No. 12—San Francisco: Alaska „ 1 Arizona 7 California 266 16 5.0 7.0 17.2 60.3 53.5 143,0 Idaho. 58 2 7.2 9.7 16.9 Nevada 10 Oregon 86 5 2.1 2.5 35.5 8.4 48.5 Utah.... 23 Washington 78 4 2.8 6.0 14.2 1.6 24.6 Total 529 27 5,0 11.9 32.9 119.7 63.5 233.0 RECAPITULATION. Paper Paper Paper Total Number Paper maturing maturing maturing Paper Total number of of banks maturing after after after maturing commer- Districts and cities. r m e b p e a o m n r k t b e s e d r . m a o c d co a m ted - . 1 w 0 i d th a i y n s. bu 3 1 t 0 0 w d d i a a t y h y s i s n . bu 6 3 0 t 0 w d d a i a t y h y s i s . n bu 9 6 t 0 0 w d d i a a t y h y i s s n . 90 a f d t a e y r s. pa c p ia e l r. Per cent. No. 1.—Boston 433 9 44.6 23.2 41.3 75.1 184.2 1,2 No, 2.—New York 615 12 1.1 21.6 60.5 47.6 0.9 131.7 0.9 No. 3.—Philadelphia.. 628 13 13.6 51.6 26.4 19.0 7.0 117.6 0.8 No. 4.—Cleveland 762 11 1.6 25.3 40.3 53.3 9.6 130.1 0.8 No. 5.—Richmond 508 112 23.6 535.2 1,503.3 1,531.5 81.9 3,675.5 23.9 No. 6,—Atlanta 387 131 5.2 287.8 1,367.0 1,510.3 376.7 3,547.0 23.0 No. 7.—Chicago 990 83 121.5 808.7 544.0 428.0 318.6 2,220.8 14.4 No. 8.—St. Louis 467 45 6.6 122.2 21?. 1 172.2 56.4 574.5 3.7 No. 9.—Minneapolis... 735 81 29.1 17.0 68.8 98.1 196.4 409.4 2.7 Kansas City... 948 83 45.0 413.8 652.2 340.4 356.9 1,808.3 11.7 Dallas 647 118 210.5 517.8 865.5 786.1 2,379.9 15.4 San Francisco. 529 27 5.0 11.9 32.9 119.7 63.5 233.0 1.5 Total for December. 725 296.9 2,528.8 5,071.6 5,260.7 2,254.0 15.412.0 100.0 Per cent 9.5 1.9 16.4 32.9 34.2 14.6 '100.0 Totals for— November.. 7,646 837 214.2 2,516.6 6,242.0 6,791.2 2,505.7 18,269.7 October 7,649 796 165.2 1,995.2 5,327.4 5,671.0 1,892.0 15,050.8 September. 7,630 762 131.7 1,698.2 6,180.0 5,306.5 1,088.6 14,405.0 August 7,610 693 320.2 1,380.1 4,990.9 4,520.1 1,022.4 12,233.7 July 7,606 796 103.4 1,612.4 4,512.5 5,294.3 1,715.4 13,238.0 June 7,607 785 1,810.3 3,905.3 5,187.2 2,503.2 13,406.0 May 7,605 716 1,631.5 3,800.8 4,331.1 2,382.3 12,145.7 April 7,611 617 1,239.0 3,500.9 4,166.4 1,643.0 10,549.3 March 7,614 570 1,798.6 5,257.4 5,162.9 1,180.8 13,399.7 February.. 7,617 469 2,957.4 5,421.8 3,265.8 885.3 12,530.3 January 7,610 4,109.3 3,627.0 2,365.1 611.4 10,712.8 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
90 FEDERAL .RESERVE BULLETIN. FEBRUARY 1, 1916. Amount of trade acceptances discounted by each Federal Reserve Bank from Sept. 2, date of first discount, to Dec. SI, 1915, {In thousands of dollars.] Trade acceptances discounted during month of— Federal Reserve Bank. te S m e b p e - r. O b c e t r o . - No b v e e r. m- D b e e ce r. m- Total. New York 4.8 0.9 5.7 Cleveland .,... 1.6 2.7 .6 4.9 Richmond.. 10.6 100.1 145.7 194.1 450.5 Atlanta (including New Orleans branch) . 259.2 402.6 205.6 139.7 1,007.1 St. Louis T .'. 12.3 37.1 13.8 104.6 167.8 Kansas City 4.5 71.8 11.5 87.8 Dallas 2.5 59.4 37.9 61.0 160.8 San Francisco 28.8 22.4 19.9 3.1 74.2 Total . . .. 319.5 629.1 496.2 514.0 U,958.8 1 In addition to the total shown above, the Boston Federal Reserve Bank, on Dec. 31, 1915, held also $31,600 of trade acceptances bought in the open market. Amounts of commodity paper discounted by each Federal Reserve Bank from Sept. 8, date of first discount, to Dec. 81,1915. [In thousands of dollars.] Commodity paper discounted during month of— Federal Reserve Bank. Sep- Octo- Novem- Decemtember. ber. ber. ber. Total. Richmond 96.0 364.4 1,523.4 2,881.4 Atlanta (including New Orleans branch) . 807.3 1,657.2 2,739.1 1,828.7 7,032.3 St. Louis 31.2 15.0 53.6 99.8 Minneapolis 1.5 12.5 11.3 25.3 Dallas -. 2.3 4.8 83.7 148.3 239.1 San Francisco 35.7 1.5 37.2 Total. 905.6 2,094.8 4,375.2 2,939.5 10,315.1 Classes of commodity paper discounted by each Federal Reserve Bank from date of first discount to close of business on Dec. SI, 1915. Atlanta Richmond. N ( e i w nc l O ud rl i e n a g ns St. Louis. Minneapolis. Dallas. Fran S c a i n sco.l Total. branch). Cotton $2,880,816 $6,378,867 $800 $237,573 $9,498,056 Rice . 1,522 1,522 Cottonseed cake 75,000 75,000 Cottonseed 36 36 Sugar 313,332 « 313,332 Yarn 20,000 20,000 Peaches (evaporated).... 10,000 $35,701 45,701 Wheat 80,188 25,000 $20,075 125,263 Seed. 10,000 10,000 Corn . 2,100 2,100 Oats 3,000 3,000 Grain . . 1,539 1,539 Timber 529 529 Pig iron 20,000 20,000 Apples 3,492 3,492 Peanuts 600 600 Hay 100 100 Miscellaneous 673 125,000 63,962 5,217 194,842 2,881,489 7,032,244 99,752 25,292 239,095 37,240 10,315,112 1 All discounted at regular rates. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
FEBRUARY 1, 1916. FEDERAL RESERVE BULLETIN. 91 Amounts of commercial paper, exclusive of bankers7 acceptances, held by each Federal Reserve Bank on Dec, SO, 1915, distributed by maturities. [In thousands of dollars.] Paper Paper Paper Paper maturing maturing maturing Paper Federal Reserve Bank. m w at i u th r i i n ng d a a f y te s r b 1 u 0 t d a a f y te s r b 3 u 0 t d a a f y te s r b 6 u 0 t m a a ft t e u r r 9 in 0 g Total. Per cent. ^ 10 days. within within within days. 30 days. 60 days. 90 days. Boston 58.3 66.5 91.7 19.0 235.5 0.7 New York 37 5 98 7 82 5 18 9 237.6 0 7 Philadelphia 41 5 64 6 36.7 17.6 11.7 172.1 0.5 Cleveland 169.0 99.6 170.1 67.9 32.5 539.1 1.7 Richmond . 1,028.8 2,717.5 2,752.9 933.1 74.4 7,506.7 23.2 Atlanta, including New Orleans branch 1,131.8 1,973.5 2,722.-3 1,273.0 1,030.8 8,131.4 25.1 Chicago 486.5 1,234.8 876.2 720.5 687.4 4,005.4 12.4 St. Louis 249.9 393.0 374.3 132.8 104.9 1,254.9 3.9 Minneapolis 217.3 163.9 196.4 211.7 510.2 1,299.5 4.0 Kansas City 630.4 1,056.2 841.1 521.4 532.4 3,581.5 11.1 Dallas 1,092.9 1,056.6 1,079.2 693.6 1,035.2 4,957.5 15.3 San Francisco.. 86.0 86.8 130.8 83.9 62.9 450.4 1.4 Total 5,229 9 9,011 7 9 354 2 4,693 4 4,082 4 32,371.6 100.0 Per cent 16.2 27.8 28.9 14.5 12.6 100.0 ACCEPTANCES. Bankers1 foreign-trade acceptances, by classes, held by the Federal Reserve Banks each week. [In thousands of dollars.] Nonmember banks. " Date. banks. Trust State banks. Total. companies. banks. December 27,1915. 13,790 5,697 292 820 20,599 Januarys, 1916.... 15,494 7,160 362 822 23,838 January 10,1916... 16,492 7,293 370 938 25,093 January 17,1916... 16,908 6,857 425 1,010 25,200 January 24,1916... 16,348 7,282 364 1,441 125,435 1 Acceptances indorsed by member banks: Trust companies, §40,000; private banks, $441,000; total, $481,000. In addition to the foreign trade acceptances shown above, the Federal Reserve Banks held, on January 24,1916, also a total of 108 bankers' domestic acceptances, amounting to $797,729, and distributed by sizes as follows: 40 items up to $5,000, amounting to $118,196; 56 items from $5,000 to $10,000, amounting to $432,617; and 12 items from $10,000 to $25,000, amounting to $246,916. Distribution of bankers7 foreign trade acceptances held by Federal Reserve Banks, according to schedules on hand Jan. 24, 1916, by classes of acceptors and sizes. To $5,000. O to v $ er 1 0 $ , 5 0 , 0 0 0 0 . 0 O to v e $ r 2 $ 5 1 ,0 0 0 ,0 0 0 . 0 O t v o 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. "3 m II Member banks... 676,436 1,795,525 3,231,215 2,917,136 1,329,086 885 16,348,244 64.3 Trust companies. 539,432 1,255,347 2,362,358 572,078 1,861,067 691,882 534 7,282,164 28.6 State banks 135,000 105,000 45,000 78,500 363,500 1.4 Private banks 39,002 95,185 657,718 250,324 399,188 74 1,441,417 5.7 Total. 1,389,870 3,251,057 9,463,922 103 4,053,617 5,255,891 10 2,020,968 1,541 25,435,325 100.0 Per cent 5.5 12.8 37.2 15.9 20.7 7.9 100.0 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
92 FEDEBAL EESEBVE BULLETIN. FEBRUARY 1, 1916. Amounts of acceptances held by the several Federal Reserve Banks at close of business on Fridays, Dec. 23, 1915, to Jan* 21, 1916. [In thousands of dollars.] B to o n s - - 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. c C a h g i o - . Lo S u t. is. M ap i o n l n is e . - K C an it s y a . s Dallas. F S ra an n- T f o o t r al cisco. system. Maturities within 10 days: Dec 23 1915 568 482 447 84 166 96 33 49 85 2,010 Dec 30 1915 . . 285 748 73 10 25 29 14 22 30 1,236 Jan 7 1916 409 1 036 292 107 204 71 61 52 32 2 264 Jan 14 1916 714 1,011 220 145 196 73 78 53 65 2,555 Jan. 21,1916 839 1,016 493 70 7 251 138 116 42 108 3,080 From 11 to 30 days: Dec 23 1915 851 1,558 383 175 279 102 75 67 125 3,615 Dec 30 1915 1,338 1,977 591 235 7 481 184 160 105 188 5,266 Jan 7,1916 1,424 1,402 676 252 7 637 194 153 115 250 5,110 Jan 14 1916 1 608 1 595 664 205 7 906 165 121 75 175 5 521 Jan 21 1916 1,812 1,556 709 226 19 806 156 140 179 149 5', 752 From 31 to 60 days: Dec 23 1915 2,820 2,152 1,169 281 1,057 311 234 179 334 8,537 Dec. 30,1915 - - 2,559 1,844 1,107 257 19 905 239 172 150 256 7,508 Jan 7 1916 2,945 2,780 818 357 57 838 285 212 207 275 8 774 Jan 14 1916 2,518 3,117 792 298 57 578 294 205 235 290 8 384 Jan 21 1916 2,795 4,246 846 414 100 38 963 344 196 191 385 10,518 From §i days to 3 months: Dec 23,1915 2,462 3,348 610 186 100 417 131 92 88 106 7,540 Dec 30 1915 2,311 4,146 772 302 150 46 605 210 131 152 178 9,003 Jan 7 1916 2,089 4,330 726 226 150 8 649 209 123 121 269 8,900 Jan. 14,1916 2,338 4,543 770 292 150 136 719 361 119 107 263 9,798 Jan 21 1916 2,529 3,768 306 292 50 336 485 302 153 127 212 8,560 Total acceptances held: Dec 23 1915 6,701 7,540 2,609 726 100 1,919 640 434 383 650 21,702 Dec 30'1915 -. 6,493 8,715 2,543 804 150 72 2,016 661 478 429 652 23,013 Jan 7 1916 6,867 9 548 2 512 942 150 72 2,328 759 549 495 826 25 048 Jan 14 1916 7,178 10,266 2,446 940 150 200 2,399 893 523 470 793 26,258 Jan. 21,1916 7,975 10,586 2,354 1,002 150 400 2,505 940 605 539 854 27,910 Amounts of acceptances purchased by the several Federal Reserve Banks to Nov. 30, and for the month of December, 1915, distributed by maturities. [In thousands of dollars.] Acceptances maturing— Boston. Y N o e r w k. d P e h lp 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. c C a h g i o - . Lo S u t. is. M ap i o n l n i e s. - K C an it s y a . s Dallas. F S ra an n- Total. cisco. Within 30 days: Feb m to Nov 30 470 739 410 101 141 103 42 69 61 2,136 D8c©mt)8r 27 507 285 7 15 3 844 Total, calendar year 1915 497 1,246 695 101 7 156 103 45 69 61 2,980 = After 30 but within 60 days: Feb 19 to Nov 30 1,667 2,350 1,261 746 609 347 169 179 726 8,054 D ecemb er 470 27 203 19 207 27 22 4 24 1,003 Total, calendar year 1915 2,137 2,377 1,464 746 19 816 374 191 183 750 9,057 After 60 days but within 3 months: Feb. 19 to Nov. 30 9,047 17,101 3,944 1,804 100 4,131 1,090 1,081 1,371 2,196 41,865 December. 2,424 5,110 1,462 312 150 46" 679 234 138 165 223 10,943 Total, calendar year 1915 11,471 22,211 5,406 2,116 250 46 4,810 1,324 1,219 1,536 2,419 52,808 Total acceptances bought: Feb 19 to Nov 30. 11,184 20,190 5,615 2,651 100 4,881 1,540 1,292 1,619 2,983 52,055 December 12,921 5,644 1,950 312 150 72 901 261 163 169 247 12,790 Total, calendar year 1915 14,105 25,834 7,565 2,963 250 72 5,782 1,801 1,455 1,788 3,230 64,845 i Includes $31,600 of trade acceptances bought in the open market. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
FBBEDAET 1, 1916. FEDEKAL EBSEEVE BULLETIN. 93 FEDERAL RESERVE BANK STATEMENTS. Resources and liabilities of each of the Federal Reserve Banks and of the Federal Reserve System at close of busvnessfon Fridays, Dec. SO, 1915, to Jan. 21, 1916. RESOUECES. [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 an it s y a . s Dallas. F ci r s a c n o - . sy T s f o o te t r a m l . Gold coin and certificates in vault: Dec. 30,1915 14,097 168,965 6,440 9,559 5,223 4,872 35,162 2,967 2,700 8,381 3,975 4,205 266,546 Jan.7,1916 16,673 169,138 5,915 9,600 5,941 5,020 37,298 3,180 3,053 8,590 3,964 4,096 272,018 Jan. 14,1916 16,591 159,451 10,027 9,683 5,601 5,230 30,788 3,167 8,595 4,009 4,625 260,855 Jan.21,1916 17,463 155,783 11,806 9,610 5,636 5,096 29,932 3,017 3,103 8,606 4,010 5,044 259,106 Gold settlement fund: Dec. 30,1915 4,279 6,717 8,695 11,042 9,875 3,717 1,256 6,072 4,355 2,464 8,941 77,293 Jan.7,1916 1,603 8,707 8,897 11,661 10,222 3,321 2,372 7,580 3,944 2,151 8,812 11,880 81,150 Jan. 14,1916 2,087 7,253 8,092 12,013 10,574 3,526 10,164 6,197 3,901 2,784 9,506 9,533 85,630 Jan.21,1916 1,270 10,326 5,513 11,892 11,934 3,580 11,859 4,766 3,641 3,114 8,957 4,768 81,620 Gold redemption fund: si. i"HS Dec. 30,1915 55 334 307 25 30 107 260 1,124 Jan.7,1916. 172 334 307 25 30 107 260 T 1,250 Jan. 14,1916 162 312 318 24 30 107 256 1,215 Jan.21,1916 55 305 21 30 107 253 1,062 Legal-tender notes,silver3, etc.: Dec. 30,1915.. 361 7,477 3,097 1,211 67 185 630 20 120 259 5 13,525 Jan.7,1916 696 5,379 3,773 1,298 109 148 702 138 93 163 374 15 12,888 Jan. 14,1916 1,327 4,478 4,684 1,420 164 240 1,005 176 141 177 464 7 14,283 Jan.21,1916 1,758 3,297 5,247 1,559 156 181 810 184 225 211 499 5 14,132 Total reserve: m Dec. 30,1915 18,743 183,214 18,232 21,812 15,499 9,081 37,048 9,157 7,105 11,072 13,435 14,090 Jan.7,1916 18,987 183,396 18,585 32,559 16,156 8,796 40,372 10,923 7,120 11,011 13,410 15,991 358,488 Jan. 14,1916 20,011 171,344 22,803 23,116 16,651 9,314 41,957 9,564 7,160 11,663 14,235 14,165 367,306 Jan.21,1916 20,494 169,461 22,566 23,061 18,014 9,162 42,601 7,988 6,999 12,038 13,719 9,817 361,983 Bills discounted—Mem- 355,920 bers: Dec. 30,1915 235 237 172 539 7,507 8,131 4,005 1,255 1,299 3,581 4,957 450 32,368 Jan 7,1916 206 234 164 445 7,331 7,388 4,167 1,216 1,169 3,414 4,391 406 30,531 Jan. 14,1916 200 206 149 411 7,106 7,208 3,929 1,241 1,140 3,206 4,301 401 29,498 Jan.21,1916 208 175 182 386 6,759 6,575 3,512 1,152 1,121 3,197 4,275 416 27,958 Bills bought in open market: Dec. 30,1915 8,715 2,543 150 72 2,016 661 478 429 652 23,013 Jan.7,1916 6,867 9,548 2,512 942 150 72 2,328 759 549 495 25,048 Jan. 14,1916 7,178 10,266 2,446 940 150 200 2,399 893 523 470 26,258 Jan.21,1916 7,975 10,586 2,354 1,002 150 400 2,505 940 539 854 27,910 United States bonds: Dec. 30,1915 1,973 2,357 4,218 970 1,304 2,119 870 1,000 15,797 Jan.7,1916.. 2,791 2,400 25 4,242 971 1,329 2,129 870 1,000 16,734 Jan. 14,1916 2,991 2,404 25 4,246 1,091 1,393 2,182 1,295 1,000 17,613 Jan.21,1916 2,991 2,470 25 4,313 1,491 1,458 2,188 1,295 3,025 20,242 Municipal warrants: Dec. 30, 1915.... 3,041 1,269 1,538 2,846 330 1,256 292 288 72 345 12,220 Jan.7,1916 3,171 6,128 1,448 2,767 158 330 1,163 332 911 278 76 335 17,097 Jan.14,1916 3,332 7,238 2,457 2,920 158 330 1,173 332 880 253 76 335 19,484 Jan. 21,1916... 3,307 7,189 2,957 2,926 160 330 1,466 453 961 349 76 450 20,624 Federal reserve notes, net assets: Dec. 20,1915 709 15,877 401 292 1,695 817 818 1,301 21,910 Jan. 17,1916 780 17,821 496 462 1,665 719 992 1,221 24,156 Jan.14,1916 901 21,499 675 612 1,666 740 1,209 2,641 29,943 Jan.21,1916..... 23,630 436 705 1,686 795 1,269 5,394 34,895 Due from other Federal reserve banks, net: Dec. 30,1915 1,629 3,668 2,212 1,158 617 1,367 4,439 147 169 3,485 1 20,767 Jan.7,1916 219 3,515 1,110 1,671 6,186 1,991 5,045 1,599 969 2,210 1-11,137 Jan.14,1916 1,477 830 949 119 6,725 2,022 5,007 1,158 2,931 112,995 Jan.21,1916 2,227 551 152 430 5,887 2,507 4,783 1,594 2,533 113,089 All other resources: Dec. 30,1915 431 441 927 287 103 239 700 87 1,060 1,182 104 6,547 Jan.7,1916 346 415 584 445 130 1,531 187 1,492 100 1,045 118 7,078 Jan.14,1916 446 442 927 650 134 2,209 226 2,522 103 1,170 108 9,805 Jan.21,1916 590 346 941 788 111 1,864 342 3,612 107 933 174 10,688 Total resources: Dec. 30,1915 32,267 209,753 29,454 31,149 24,499 19,217 60,363 15,219 16,391 20,685 21,427 491,110 Jan. 7,1916 31,562 217,542 30,095 31,130 25,596 19,371 60,310 18,403 17,215 19,602 20,761 22,107 499,087 Jan.14,1916 34,531 210,995 32,448 31,883 25,148 19,405 62,321 18,405 17,415 19,800 21,077 22,374 507,579 Jan.21,1916... 36,767 211,387 32,427 31,889 25,346 18,786 62,312 18,938 17,303 20,533 22,663 511,326 1 Items in transit, i. e. total amounts due from, less total amounts due to, other Federal Reserve Banks. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
94 FEDERAL RESERVE BULLETIN. FEBRUARY 1, 1916. Resources and liabilities of each of the Federal Reserve Banks and of the Federal^ Reserve System at close of business on Fridays, Dec. 80, 1915, to Jan. 21, 1916—Continued. LIABILITIES. [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 ty s . as Dallas. c F i S r s a a c n n o - . sy T s f o o te t r a m l . Capital paid in: Dec. 30,1915 5,158 11,063 5,270 5,941 3,354 2,423 6,645 2,781 2,547 3,038 2,753 3,942 54,915 Jan. 7,1916 5,158 11,058 5,270 5,938 3,357 2,420 6,645 2,781 2,547 3,026 2,753 3,942 54,895 Jan. 14,1916.. 5,158 11,056 5,270 5,938 3,357 2,420 6,645 2,783 2,548 3,026 2,754 3,942 54,899 Jan. 21,1916..... 5,158 11,058 5,270 5,938 3,355 2,423 6,646 2,783 2,548 3,014 2,755 3,941 54,889 Government deposits: Dec 30 1915 5,000 5,000 5,000 15,000 Jan. 7, 1916 ... 517 4,502 537 293 5,384 5,828 i 323 525 405 417 5,092 * 664 23,841 Jan. 14,1916 862 5,507 303 366 5,733 5,919 963 601 222 502 5,094 807 26,879 Jan. 21,1916 1,089 5,431 494 481 6,016 6,044 965 635 169 570 5,136 1,043 28,073 Reserve deposits, net: Dec. 30,1915 27,109 183,208 |24,184 25,208 10,856 8,237s 53,718 12,337 13,844 14,180 9,646 17,485 400,012 Jan. 7,1916 25,887 187,375 |24,288 24,899 11,157 8,173 53,988 15,097 14,263 14,829 9,787 17,501 407,244 Jan. 14,1916 28,511 186,944 §26,471 25,579 iO,991 8,326 54,713 15,021 14,645 15,018 9,875 17,625 413,719 Jan. 21,1916 30,520 188,298 125,400 25,470 10,758 7,999 54,701 15,520 14,586 15,930 9,795 17,679 416,656 Federal Reserve notes, net liability: Dec. 30 1915 5,266 3,456 1,478 3,286 13,486 Jan. 7,1916 5,674 2,849 1,330 3,129 12,982 Jan 14 1916 5,038 2,635 1,254 3,021 11,943 Jan. 21,1916 5,184 2,216 1,324 2,847 11,571 Due to other Federal Reserve Banks, net: Dec 30 1915 8,010 Jan 7 1916 14,607 Jan 14 1916 7,486 404 333 Jan. 21.1916 6,600 1,263 All other liabilities: Dec. 30, 1915 7,472 23 101 101 7,697 Jan 7 1916 24 101 125 Jan. 14,1916 29 105 134 Jan 21 1916 "33 104 137 Total liabilities: Dec. 30, 1915 32,267 209,753 29,454 31,149 24,499 19,217 60,363 15,219 16,391 18,696 20,685 21,427 491,110 Jan. 7,1916 31,562 217,542 30,095 31,130 25,596 19,371 60,310 18,403 17,215 19,206 20,761 22,107 499,087 Jan. 14,1916 34,531 210,995 32,448 31,883 25,148 19,405 62,321 18,405 17,415 19,800 21,077 22,374 507,579 Jan. 21,1916 36,767 211,387 32,427 31,889 25,346 18,786 62,312 18,938 17,303 20,838 20,533 22.663 511,326 i Overdraft. Circulation of Federal Reserve notes at close of business on Fridays, Dec. SO,1915, to Jan. 21,1916. [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 - . sy T s f o o t t e r a m l . Federal Reserve notes issued to the bank: Dec. 30,1915 10,020 89,440 9,160 11,000 15,630 18,950 4,380 8,950 14,000 11,000 15,145 6,450 214,125 Jan. 7,1916 10,020 91,840 9,160 11,200 15,030 18,350 4,380 8,950 14,000 11,000 15,145 6,450 215,525 Jan. 14, 1916 10,020 94,240 9,160 11,200 15,030 18,130 4,380 8,950 14,000 11,000 14,610 8,310 219,030 Jan. 21, 1916 10,020 94,240 8,660 11,200 14,230 17,990 4,380 8,950 14,000 11,000 14,580 11,130 220,380 Federal Reserve notes in the hands of the bank: Dec. 30,1915 709 16,017 401 292 814 1,294 1,695 817 818 522 419 1,301 25,099 Jan. 7,1916 780 17,921 496 462 206 1,301 1,665 719 992 670 576 1,221 27,009 Jan. 14, 1916 901 21,550 675 612 682 1,295 1,666 740 1,209 746 149 2,641 32,866 Jan. 21, 1916 980 23,681 436 705 186 1,574 1,686 795 1,269 676 293 5,394 37,675 Federal Reserve notes in circulation: Dec. 30,1915 9,311 73,423 8,759 10,708 14,816 17,656 2,685 8,133 13,182 10,478 14,726 5,149 189,026 Jan. 7,1916 9,240 73,919 8,664 10,738 14,824 17,049 2,715 8,231 13,008 10,330 14,569 5,229 188,516 Jan. 14, 1916 9,119 72,690 8,485 10,588 14,348 16,835 2,714 8,210 12,791 10,254 14,461 5,669 186,164 Jan. 21, 1916......... 9,040 70,559 8,224 10,495 14,044 16,416 2,694 8,155 12,731 10,324 14,287 5,736 182,705 Gold and lawful money deposited with or to the credit of the Federal Reserve Agent: Dec. 30,1915 10,020 89,300 9,160 11,000 9,550 14,200 4,380 8,950 14,000 9,000 11,440 6,450 197,450 Jan. 7,1916. 10,020 91,740 9,160 11,200 9,150 14,200 4,380 8,950 14,000 9,000 11,440 6,450 199,690 Jan. 14, 1916 10 020 94,189 9,160 11,200 9,310 14,200 4,380 8,950 14,000 9,000 11,440 .8,310 204,159 Jan. 21, 1916 10,020 94,189 8,660 11,200 8,860 14,200 4,380 8,950 14,000 9,000 11,440 11,130 206,029 Carried to net liabilities: Dec. 30,1915 . 5,266 3,456 1,478 3,286 13,486 Jan. 7,1916 ......... 5,674 2,849 ........ 1,330 3,129 12,982 Jan. 14, 1916. 5,038 2,635 1,254 3,021 11,948 Jan. 21, 1916 .. 5,184 2,216 1,324 2,847 11,571 Carried to net assets: Dec. 30,1915 709 15,877 401 292 1,695 817 818 1,301 25,099 Jan. 7,1916 780 17,281 496 462 1,665 719 992 1,221 24.156 Jan. 14 1916 901 21,499 675 612 1,666 740 1,209 2,641 29,943 Jan. 21, 1916 980 23,630 436 705 1,686 795 1,269 5,394 34,895 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
FEBRUARY 1, 1916. FEDERAL RESERVE BULLETIN. 95 Statement of Federal Reserve Agents' accounts at close of business on Fridays, Bed 30, 1915, to Jan. 21, 1916. [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 is e . - K C an it 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 . Federal Reserve notes: Received from the Comptroller- Dec. 30,1915 16,360 106,240 12,480 12,600 17,000 20,400 9,380 9,600 19,000 11,000 19,580 10,000 263,640 Jan. 7,1916 16,360 108,240 12,480 12,600 17,000 20,400 9,380 9,600 19,000 13,000 19,580 10,000 267,640 Jan 14,1916 19,380 * 108,240 15,480 13,000 17,000 20,400 9,380 9,600 19,000 13,000 19,580 11,360 275,420 Jan. 21,1916 19,380 108,240 15,480 13,000 17,000 20,400 9,380 9,600 19,000 13,000 19,580 11,360 275,420 Returned to the Comptroller- Dec. 30,1915 500 640 80 120 61 230 1 631 Jan. 7,1916 500 640 80 120 61 230 1,631 Jan. 14,1916. 500 640 120 120 61 230 1 671 Jan. 21,1916 500 640 120 120 81 230 Chargeable to the Federal Reserve Agent- Dec. 30,1915 15,860 106,240 11,840 12,520 17,000 20,400 9,260 9,600 19,000 11,000 19,519 9,770 262,009 Jan. 7,1916 15,860 108,240 11,840 12,520 17,000 20,400 9,260 9,600 19,000 13,000 19,519 9,770 266,009 Jan. 14,1916 18,880 108,240 14,840 12,880 17,000 20,400 9,260 9,600 19,000 13,000 19,519 11,130 273,74S Jan. 21,1916 18,880 108,240 14,840 12,880 17,000 20,400 9,260 9,600 19,000 13,000 19,499 11,130 273,729 In the hands of the Federal Reserve Agent- Dec. 30,1915 ... 5,840 16,800 2,680 1,520 1,370 1 450 4 880 650 5 000 4,374 3,320 47,884 Jan. 7,1916 ,. 5,840 16,400 2,680 1,320 1,970 2,050 4,880 650 5,000 2,000 4,374 3,320 50,484 Jan. 14,1916...... 8,860 14,000 5,680 1,680 1,970 2,270 4,880 650 5,000 2,000 4,909 2,820 54,71S Jan. 21,1916 8,860 14,000 6,180 1,680 2,770 2,410 4,880 650 5,000 2,000 4,919 53,349 Issued to Federal Reserve Bank, net— Dec. 30,1915 10,020 89,400 9,160 11,000 15,630 18,950 4,380 8,950 14,000 11,000 15,145 6,450 214,125 Jan. 7,1916 10,020 91,840 9,160 11,200 15,030 18,350 4,380 8,950 14,000 11,000 15,145 6,450 215,525 3an. 14,1916 10,020 94,240 9,160 11,200 15,030 18,130 4,380 8,950 14,000 11,000 14,610 8,310 219,030 Jan. 21,1916 10,020 94,240 8,660 11,200 14,230 17,990 4,380 8,950 14,000 11,000 14,580 11,130 220,380 Amounts held by Federal Reserve Agent: In reduction ofliability on outstanding notes- Gold coin and certificates on hand- Dec. 30,1915.. 10,020 89,300 4,160 10,470 500 3,950 10,000 2,000 9,540 139,940 Jan. 7,1916 10 020 91,740 4,160 10.670 500 3 950 10,000 2,000 9,540 142,580 Jan. 14,1916 10,020 94,189 4,160 10,670 500 3,950 10,000 2,000 9,540 145,029 Jan. 21,1916.. 10,020 94,189 3,660 10,670 500 3,950 10,000 2,000 9,540 144,529 Lawful money on Dec. 30,1915 Jan. 7,1916... Jan. 14,1916. Jan. 21,1916.. Credit balances in gold redemption fund— Dec 30 1915 530 120 650 Jan. 7,1916 530 120 650 Jan 14 1916 530 120 650 Jan 21 1916 530 120 650 Credit balances with Federal R e s e r ve Board- Dec 30,1915 5,000 9,550 13,700 4,260 5,000 4,000 7,000 1,900 6,450 56,86C Jan. 7,1916 . 5,000 9,150 13,700 4,260 5,000 4,000 7,000 1,900 6,450 56,460 Jan. 14,1916 5,000 9,310 13,700 4,260 5,000 4,000 7,000 1,900 8,310 58,480 Jan 21 1916 5 000 8 860 13 700 4 260 5 000 4 000 7,000 1 900 11,130 60,850 As security for outstanding notes- Commercial paper- Dec 30 1915 140 6,080 4,750 2,000 3,705 16,675 Jan 7 1916 100 5 880 4 150 2,000 3,705 15,835 Jan 14 1916 51 5 720 3,930 2,000 3,170 14,871 Jan 21 1916 51 5,370 3,790 2,000 3,140 14,351 Total- Dec. 30,1915.. 10,020 89,440 9,160 11,000 15,630 18,950 4,380 8,950 14,000 11,000 15,145 6,450 214,125 Jan. 7,1916... 10,020 91,840 9,160 11,200 15,030 18,350 4,380 8,950 14,000 11,000 15,145 6,450 215,525 Jan. 14,1916.. 10,020 94,240 9,160 11,200 15,030 18,130 4,380 8,950 14,000 11,000 14,610 8,310 219,030 Jan. 21,1916.. 10,020 94,240 8,660 11,200 14,230 17,990 4,380 8,950 14,000 11,000 14,580 11,130 220,380 Memorandum: Total amount of commercial paper delivered to the Federal Reserve Dec. 30 1915 140 6,096 4,751 2,002 3,751 16,740 Jan 7 1916 100 5,976 4,150 2,006 3,958 16,190 Jan 14 IQifi 51 5 778 3 930 2 003 3 810 15,572 Jan. 21,1916 51 5,466 3,790 2,008 3,829 15,144 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
96 FEDERAL BESEBVE BULLETIN. FEBRUARY 1, 1916. GOLD IMPORTS AND EXPORTS. Imports of gold, by customs districts, Jan. 1 to Dec. 31, 1915, and Jan. 1 to Jan. 21,1916. [In thousands of dollars.] Week ending Bee. 31,1915, Bullion, refined Foreign coin Total Jan. 1 to Bee. 81,1916. Ore and base bullion United States mint or assay office bars United States coin. Foreign coin Total, Week ending Jan. 7,1916. Ore and base bullion United States mint or assay Bullion, refined United States coin Foreign coin Total Week ending Jan. 14,1916. Ore and base^bullion United States mint or assay office bars Bullion, refined United States coin.. . Foreign coin Total Week ending Jan. 21,1916. . Ore and base bullion- United States mint or assay office bars Bullion, refined United States coin Foreign coin Total Jan. 1 to Jan. 21,1916. Ore and base bullion United States mint or assay office bars Bullion, refined United States coin Foreign coin. Total weN dna eniaM .erihspmaH 1 48,390 11,651 60,042 .dnalyraM *50 50 .sttesuhcassaM = *3 3 .kroY weN 4 258 378 11,124 11,764 113 13,465 21,743 119,781 155,102 273 5,805 6,078 3 254 923 1,180 30 911 3,674 4,615 33 1,438 10,402 11,873 .aihpledalihP i,447 1,447 2,"507 2/507 ,ociR otroP 3 3 .dnalsI edohR 27 27 .adirolF 193 482 675 10 23 4,407 4,440 1 1 30 30 32 32 .snaelrO weN 1 3 443 **6 30 479 8 8 18 5 23 26 5 31 .anozirA 7 7 375 478 ... 853 7 7 6 9 ... 13 3 16 .osaP lE 145 1,249 1,394 15 15 2 2 3 3 2 18 20 .oderaL 23 23 = ... .aksalA 128 3,553 3,688 .ocsicnarF naS 138 49 187 1,328 14,361 24 51,243 66,956 195 19 59 59 254 254 -ilaC nrehtuoS .ainrof === 7 .... 8 .... .... .notgnihsaW 79 81 160 3,967 2,804 13 996 7,780 85 85 64 64 55 92 147 205 92 297 .olaffuB 32 11 43 5,211 162 752 5 6,130 16 1 70 87 29 43 72 20 20 37 31 112 180 .ogacihC 5 5 ... ... ,atokaD 5 5 180 ... 180 ft 6 6 6 12 12 -uS dna htuluD .roirep .... 1 .... 1 — .... .... .nagihciM 39 39 1,688 1,688 16 16 60 60 3 3 79 79 .ecnerwaL .tS 6 6 1 12,467 2/785 85,968 39,333 140,554 3 3 1 1 5 1 6 .tnomreV 4 1 5 •- — -- = -- .latoT 299 406 578 13,053 14,336 13,653 12,629 39,484 156,187 230,002 1451,955 124 1 358 3 5,805 6,291 149 29 495 1 923 1,597 132 1,065 36 3,674 4,907 407 31 1,917 42 10,403 12,800 i Includes $37,000 for Eagle Pass not shown in the table. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
FEBRUARY 1, 1916. FEDERAL RESEKVE BULLETIN". 97 Exports of gold, by customs districts, Jan. 1 to Dec. 81, 1915, and Jan. 1 to Jan. 21, 1916. [In thousands of dollars.] Week ending Bee. SI, 1915. Ore and base bullion.. .. United States mint or assay office bars ... Bullion, refined, domestic United States coin... Foreign coin . Total Jan. 1 to Bee. SI, 1915. Ore and base bullion . . United States mint or assay office b a r s . .. Bullion, refined: Domestic *.. Foreign United States coin Foreign coin Total... .. .. .. . Week ending Jan. 7,1918. United States mint or assay office bars United States coin Foreign coin Total Week ending Jan. 14,1916. Ore and base bullion United States mint or assay office bars Bullion, refined United States coin Foreign coin.......... Total Week ending Jan. 21,1916. Ore and base bullion United States mint or assay office bars Bullion, refined: Foreign United States coin Foreign coin Total Jan. 1 to Jan. 21,1916. Ore and base bullion...... United States mint or assay office bars Bullion, refined: Domestic United States coin Foreign coin Total weN dna eniaM .erihspmaH 1 1 3 1 2 6 === .kroY weN 1,723 40 1,763 499 14,437 3,797 18,733 142 496 638 509 548 200 1,257 500 500 1,000 509 1,190 1,196 2,895 .ociR otroP 15 15 15 15 .snaelrO weN 10 10 .osaP lE 8 .aksalA 0 2 4 43 .iiawaH 21 21 32 32 8 8 8 8 .ocsicnarF naS 100 100 300 327 2 629 101 61 162 1 1 101 62 163 .notgnihsaW 45 15 60 358 25 137 520 1 2 3 1 2 3 .olaffuB 5 15 2 22 22 119 90 917 131 1,279 9 5 14 15 15 24 5 29 .roirepuS dna htuluD 2 .... 2 .nagihciM 12 1 13 - .ohadI dna anatnoM 2 2 .ecnerwaL .tS 1 2,094 2,095 732 3 5 1,231 7,726 9,697 250 853 1,103 253 258 511 750 750 503 750 1,111 2,364 .tnomreV 18 1 19 1 1 2 2 3 3 .latoT 52 1 115 1,762 2,134 4,064 419 1,350 457 5 17,096 11,666 30,093 250 142 1,349 1,741 9 767 102 617 458 1,953 15 3 1,268 500 1,786 24 1,017 105 2,027 2,307 5,480 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
98 FEDERAL RESERVE BULLETIN. FEBRUARY 1, 1916. CAPITAL AND RESERVE DEPOSITS. Statement of capital and reserve deposits, also percentage of capital to the combined amounts of capital and 65 per cent of reserve deposits. [Figures as of December 1,1915. In thousands of dollars.] Percentage of Federal Reserve Bank of— c P a a p id it - a in l. d R e e p s o e s r i v ts e . 6 o 5 d f e p p r e e o r s s e c i r e t v s n . e t P ce a p n i d d l t u e - o s i p n f o 6 r s 5 c e i a t p s s p e e . i r r t v a e l a c n a d p o o i f f 6 t a 5 r c l e a p s t p e o e i r r t v s a c u l e e m nt deposits. Boston 5,171 27,252 17,714 22,885 22.2 New York 11,061 171,144 111,244 122,305 9.0 Philadelphia 5,270 23,728 15,423 20,693 25.5 5,931 24,436 15,883 21,814 27.2 3,354 / \ 2 11 io 5 ,1 14 4 9 9 9 6 , ,5 84 9 7 7 1 9 3 , , 9 2 5 0 1 1 3 2 3 5 . . 7 4 f i12,100 7,865 10,286 23.5 Atlanta . .. - 2,421 \ 2 7 ioo 4,615 * 7,036 34.4 Chicago 6,641 52,545 34,154 40,795 16.3 St Louis 2,780 12,502 8,126 10,906 25.5 Minneapolis 2,497 13,557 8,812 11,309 22.1 Kansas City 3,030 13,692 8,900 11,930 25.4 / 114,053 9,135 11,891 23.2 Dallas 2,756 \ 29,053 5,885 8,641 31.9 San Francisco 34,942 17,331 11,265 15,207 25.9 Total 54,854 f i 397,489 258,368 313,222 17.5 \ 2 382,489 248,618 303,472 18.1 1 Inclusive of $5,000,000 of Government funds. 2 Exclusive of $5,000,000 of Government funds. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
INDEX. Page. Page. Acceptances 91 Informal rulings of the Board 64-66 Advisory council, election of 53 Purchase of United States bonds 64 Agricultural implement paper 87 Acceptance securities 64 Anonymous circular on stock subscriptions 53 Status of employees of reserve banks ,. 64 Business conditions 75-85 Eligibility of State banks 64 Capital and reserve deposits, statement of 98 Circulating notes 65 Class C directors appointed 52 Cattle paper 65 Clearing-house balances, settlement of 53 Eligible acceptances 65 Commercial paper discounted 86-91 Status of class C directors 65 Discount rates in effect 63 Paper of suspended bank 66 Distribution of discounts 86-91 Farm land loans 66 Earnings and expenses of Federal Reserve Banks. 56-59 Intradistrict clearing system, additions to and Federal Reserve Agents' accounts, statement of... 95 withdrawals from 70 Federal Reserve Bank statements 93-95 Law department 71-74 Federal Reserve Board, receipts and disbursements Transportation charges on Federal Reserve of 54,55 notes 71 Right of a national bank to increase amount of Federal Reserve Bulletin: its circulating notes 72 Bound copies of 53 Right of a national bank to write insurance Cost of, to directors of member banks 52 through its officers 73 Federal Reserve notes, circulation of 94 Consolidation of national banks, right to oper- Fiduciary powers granted , 70 ate branches - 74 Forms for reporting earnings and expenses 68, 69 Receipts and disbursements of the Federal Reserve Gold imports and exports 96, 97 Board 54,55 Gold settlement fund 60-63 Resources and liabilities of Federal Reserve Banks. 93, 94 Governors of Federal Reserve Banks, meeting of.. 52 Work of the Board 51 Holidays in reserve bank cities 68 o Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
Cite this document
Federal Reserve (1916, January 31). Federal Reserve Bulletin, 1916-02. Bulletin, Federal Reserve. https://whenthefedspeaks.com/doc/bulletin_191602
@misc{wtfs_bulletin_191602,
author = {Federal Reserve},
title = {Federal Reserve Bulletin, 1916-02},
year = {1916},
month = {Jan},
howpublished = {Bulletin, Federal Reserve},
url = {https://whenthefedspeaks.com/doc/bulletin_191602},
note = {Retrieved via When the Fed Speaks corpus}
}