Federal Reserve Bulletin, 1916-04

FEDERAL RESERVE BULLETIN ISSUED BY THE FEDERAL RESERVE BOARD AT WASHINGTON APRIL, 1916 WASHINGTON GOVERNMENT PRINTING OFFICE 1316 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FEDERAL RESERVE BOARD. EX OFFIC1O 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. (On leave of absence.) SHERMAN ALLEN, Assistant Secretary and Fiscal Agent. M. C. 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. Work of the Board 151 Dividends on stock exempt from tax 153 Appointment of Federal Reserve Agent at Richmond 153 Changes in Federal Reserve Districts 153 Purchase of United States bonds.. 156 Address of Hon. W. P. G. Harding before Birmingham Chamber of Commerce 160 Gold settlement fund 165 Informal rulings of the Federal Reserve Board 168 Additions to and withdrawals from the intra-district clearing system 169 Fiduciary powers granted..,. 169 Law department. 170 Business conditions throughout the twelve Federal Reserve Districts. 174 Distribution of discounts, by sizes and maturities.... .. ... •....-,. 189 Acceptances. 194 Federal Reserve Bank statements.....--,-.,-... .....:. 197 Gold imports and exports 201 Earnings on investments of Federal Reserve Banks 203 Discount rates in effect 204 IV Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FEDERAL RESERVE BULLETIN VOL. 2 APRIL 1, 1916 No. ,4 WORK OF THE BOARD. being one-fourth of $25,000,000, or $6,250,000. Each quarter's allotment is to be distributed Definite adjustment of the bond conversion among Federal Reserve Banks pro rata, but the question was finally effected during the Board has already announced a ruling that any early part of the month of March, as a result Federal Reserve Bank which has purchased of consultations between the Board and the bonds in the open market may consider these authorities of the Treasury Department. On an offset against the amount of bonds allotted February 28 the Secretary of the Treasury to it under the pro rata division thus described. addressed to the Board a letter in which he It remains to be seen how many such bonds will stated his decision to convert into 3 per cent be offset as the result of applications on the part securities bonds to the amount of $30,000,000 of Federal Reserve Banks which desire to be that might be offered him for such conversion relieved of the necessity of taking over bonds b}^ Federal Reserve Banks. In a later com- from member banks through the process just munication the Board was informed that the referred to. The announcement of the Sec- Secretary of the Treasury would issue one-half retary of the Treasury is of special interest in of the new securities to be provided in ex- that it establishes a construction of the Federal change for bonds offered for conversion, in the Reserve Act in harmony with the view of those form of 30-year 3 per cent bonds, and one-half who have held that the total amount of bonds in the form of one-year gold notes, in accord- which the Secretary of the Treasury could conance with the provision of the Federal Reserve vert annually under the law was not limited to Act relating to this matter. $25,000,000. By making the amount $30,- At the time of the transmission of this letter 000,000 it is recognized that the Secretary of by the Secretary of the Treasury the total the Treasury can convert any amount that he amount of Government bonds purchased by deems best, and that the establishment of such Federal Reserve Banks was approximately amount is a matter to be annually determined $40,000,000. There remained, however, the in accordance with the requirements of the $25,000,000 allotment which, as will be recalled, situation. The process of definitely refunding is to be distributed on the basis of applications bonds now securing bank circulation into secumade by member banks holding bonds, such rities without the circulation privilege has thus applications being filed with the Treasurer of the been actually begun. Details as to bond pur- United States. The Board has already ruled chases will be found on page 156. that the allotment shall be made quarterly, The final adjustment of the Louisiana reand that under this ruling the first distribution districting petition has been effected during of applications shall be made at the close of the month of March, the decision to grant March, all applications to be in hand 10 days the petition in so far as relates to the southbefore the closing of the quarter. The date for western part of Louisiana having been final receipt of all applications intended to be reached at the close of February and anconsidered in the first quarter's allotment was nounced in the March Federal Reserve Bulfixed at March 21, the total quarter's allotment letin. The decrees in the case have been 151 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

152 FEDERAL RESERVE BULLETIN. APRIL 1, 1916. prepared and entered, and the banks affected i mendations for amendments to the Federal thereby notified to undertake the arrange- Reserve Act, this text being intended to dements necessary to the transfer. On Febru- velop more fully the ideas generally indicated ary 29 the Board also took action in the Con- in the Board's annual report, where the pronecticut redistricting petition, voting to trans- posals for amendments of the Federal Reserve fer from District No. 1 to District No. 2 the Act weie set forth in general terms. The county of Fairfield, in the southwestern part Board has also reported to various committees of Connecticut, adjoining the State of New of Congress stating its views on various York, announcing that action relating to the pending bills, among them a measure to remainder of the territory covered by the amend the Clayton Act in so far as relates to original petition had been suspended for the interlocking directorates of national banks. present and would be deferred pending the attainment of more experience with the system of clearing shortly to be developed. Heads Philippine Bank. Subsequently representatives of the Connecticut bankers were given another hearing, ai^d Six months7 leave of absence has been granted it was announced that a definite decision re- by the Federal Reserve Board to H. Parker lating to the remainder of the territory would be Willis, Secretary of the Board, that he may go arrived at on a date not later than June 15,1916. to Manila, P. I., to organize and open the new Secretary of the Treasury McAdoo and Hon. Bank of the Philippines. Paul M. Warburg, member of the Board, sailed Mr. Willis has been elected president of the on board the cruiser Tennessee for Buenos Aires bank, but is expected to return to Washington on March 8. The party included about 10 per- and his work with the Board at the expiration sons, the purpose of the journey being that of the period for which leave has been granted. of attendance upon the meeting of the Joint He left Washington on March 23 and sailed High Commission appointed at the Pan Ameri- from San Francisco on the 28th. can Financial Conference held in Washing- C. C. Robinson, of New York, accompanied ton a little less than a year ago. It is ex- Mr. Willis and will assist him. pected that the party will return to Washington early in May. HOD. F. A. Delano and Hon. W. P. G. Meeting of Governors, Harding, members of the Board, left Wash- Governors of the 12 Federal Reserve Banks ington on March 9, returning on March 17, for will meet in Washington for consideration with a visit to the Federal Reserve Banks of the Federal Reserve Board of matters involv- Cleveland, Kansas City, and St. Louis, Mr. ing the operation of the banks on Wednesday, Harding also delivering an address relating to April12, 1916. the cotton situation, at Birmingham, Ala., on March 10. The visit to these banks was intended to provide an opportunity for con- Death of Director Martinez. sideration of various local problems relative io the administration of the system, and the Notice of the death of Felix Martinez, class adjustment of a number of executive details C Director of the Federal Reserve Bank of which have been pending for some time past, Dallas, was conveyed to the Federal Reserve and which were thought to require direct Board in a telegram dated March 23 from attention. W. F, Ramsey, Federal Reserve Agent at During the month the Board has trans- Dallas. Mr. Martinez died at his home in El mitted to Congress the final text of its recom- Paso, Tex., on March 22. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

APRIL 1,1916. FEDERAL BESERVE BULLETIN. 153 Exchange of Two Per Cent Bonds. Born in North Carolina in 1852, Mr. Hardy Acting upon requests of Federal Reserve removed with his parents to New York in Banks, the Federal Reserve Board on March 1859 but returned to the South in 1875 to 31 approved applications for the exchange enter the banking business at Norfolk, Va. of United States 2 per cent bonds for 3 He was appointed cashier of the Norfolk Naper cent bonds and notes, amounting to tional Bank at its organization and has been $12,511,050. Nine of the twelve Federal Re- president and first vice president of the serve Banks tendered bonds for conversion. American Bankers' Association. The Federal Reserve Banks of Atlanta, Dallas, and San Francisco made no tenders at this Changes in District Lines. time. If any banks have not asked for the There are reprinted below the formal letters conversion of their full allotment on or before of notification and decrees transferring certain October 1, any residue of the $30,000,000 banks in southern Louisiana from the Federal not then applied for and allotted will be dis- Reserve District of Dallas to the Federal Retributed to other banks applying for it. serve District of Atlanta, and transferring cer- .Dividends Exempt from Tax. tain banks in F airfield County, Conn., from In a letter addressed to Governor Charles S. the Federal Reserve District of Boston to the Hamlin, of the Federal Reserve Board, on Federal Reserve District of New York. March 9, the Commissioner of Internal Revenue FEBRUARY 28, 1916. announces a decision on the part of his office SIR: I have the honor to inform you that that income or dividends on the stock of the Federal Reserve Board on February 25 adopted the following resolution: Federal Reserve Banks is exempt from income "Resolved, That ail of Louisiana north of tax. The letter is as follows: the parishes of Vernon, Rapides, and Avoy- Replying to your letter of the 14th ultimo, elles remain in the Eleventh Federal Reserve I have the honor to advise you that upon District, and that the remaining part of the further consideration of the question, this State of Louisiana now in the Eleventh Disoffice has decided that the income derived trict be transferred to the Sixth Federal Refrom, or dividends received on, the stock of serve District, and the banks therein allotted Federal Reserve Banks is exempt from the to the New Orleans Branch of the Federal income tax imposed by section 2, act of Octo- Reserve Bank of Atlanta," ber 3, 1913. Accordingly, the following banks now mem- In other words, it is held that the exemp- bers of the Eleventh Federal Reserve District, tion provided for in the Federal Reserve Act and owning stock in the Federal Reserve Bank attaches to and follows the dividends into the of Dallas, will be transferred to the Sixth Fedhands of member banks holding Federal Re- eral Reserve District and will take out a corserve Bank stock. responding amount of stock in the Federal Member banks will therefore be permitted Reserve Bank of Atlanta. These banks will to exclude from their gross income, for the be classed as belonging to the territory aspurpose of the income tax, the dividends re- signed to the New Orleans Branch of the Fedceived on such stock. eral Reserve Bank of Atlanta. Respectfully, W. W. OSBORN, Commissioner. Bank. Capital. Surplus. Federal Reserve Agent at Richmond. First National, Abbeville $50,000 $50,000 fol M k r N . a C ti a o ld n w al e l B l a H n a k r d s y in , ce p re 1 s 8 i 9 d 9 e , n w t a o s f o t n h e M N ar o c r h - F F C F i i i a r r r l s s s c t t t a s N N N ie a a a u t t t i i i o o o N n n n a a a a t l l i l o , , , A n L Je a a l a l e f , n x a L e a y a n r e e k d t t e r t t i e e a C . . . h . . . a T. r . l . e s . 1 1 1 5 5 0 0 0 0 0 0 , , , , 0 0 0 0 0 0 0 0 0 0 0 0 2 1 0 5 0 5 0 0 0 0 , , , , 0 0 0 0 0 0 0 0 0 0 0 0 7 elected by the Federal Reserve Board a P F e ir o s p t l N es a N tio a n ti a o l n , a L l, a k N e ew C h I a b r e le ri s a 1 1 0 0 0 0 , , 0 0 0 0 0 0 4 2 0 0 , , 0 0 0 0 0 0 class C director of the Federal -Reserve Bank S O t p a e fe lo N us a a t s io N na a l ti , o N n e a w l, O Ib p e e r l i o a u . sas. 1 5 0 0 0 , , 0 00 0 0 0 3 5 0 0 , , 0 0 0 0 0 0 of Richmond and designated as Chairman of Planters National, Opelousas. 50,000 15,000 First National, Ville Platte 25,000 the Board and Federal Reserve Agent. Mr. First National Bank of Arcadia Parish, Crowley 50,000 12,500 First National, De Bidder..., 25,000 7,000 Hardy has accepted and will assume his new First National, Eunice 30,000 6,000 First National, Morgan City 50,000 50,000 duties on April 1. New Iberia National, New Iberia 50,000 500,000 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

154 FEDERAL RESERVE BULLETIN. APRIL 1, 1916. The question of transfers of capital stock course of business and the best interests of the from the Federal Reserve Bank, of Dallas to Federal Reserve System will be served by a the Federal Reserve Bank of Atlanta will re- readjustment of the geographical limits of Disquire your attention, and it is suggested that tricts Nos. 6 and 11: you follow in this matter the same procedure Now, therefore, the Federal Reserve Board which was laid down by the Board in effecting doth order— the transfer of the banks of West Virginia from (1) That District No. 11 be readjusted and the Fifth to the Fourth Federal Reserve Dis- altered so as to include the State of Texas; all trict some nine months ago. I inclose a copy that part of New Mexico not included in Disof the Federal Reserve Bulletin for July, on trict No. 10; the counties of Pima, Graham, page 142 of which you will find the details of Greenlee, Cochise, and Santa Cruz, all situate the process fully set forth. You should note in the State of Arizona; the counties of Marin communicating with member banks that shall, Bryan, Choctaw, Pushmataha, McCurthis proceeding is a readjustment under the tain, Johnson, Atoka, and Coal, all situate in Board's general power, and not a review on the State of Oklahoma; and all that part of appeal. The Board will be glad to hear from Louisiana situate north of the northern bounyou with respect to the arrangement of any daries of the parishes of Vernon, Rapides, and details that may seem to call for further ad- Avoyelles. justment. Would it be agreeable that the (2) That District No. 6 be readjusted and transfer be made effective as of April 1 ? extended so as to include the States of Florida, Please notify that the Board may enter the Georgia, and Alabama; all that part of the formal order. State of Tennessee not included in District No. Respectfully, 8; all that part of the State of Mississippi not H. PARKER, WILLIS, Secretary. included in District No. 8; and all that part of the State of Louisiana south of the northern Mr. M. B. WELLBORN, boundaries of the parishes of Vernon, Rapides, Chairman Board of Directors, and Avoyelles. Federal Reserve Bank of Atlanta. (3) That the alterations in Districts Nos. 6 and 11 directed in this order become effective April 1, 1916. (4) That the Federal Reserve Banks of Atlanta and Dallas be notified of the changes made ORDER AMENDING THE GEOGRAPHICAL LIMITS in the districts referred to and directed to take OF DISTRICTS NOS. 6 AND 11. such action as may be necessary for the trans- At a stated meeting of the Federal Reserve fer of membership of the banks included in the Board, duly held at its office in the city of territory affected. Washington, D. .€,- March 6, 1916. (5) 'That a copy of this order be filed with Present: Mr. Hamlin, Governor; Mr. Delano, the Comptroller of the Currency in order that Vice Governor; Mr. Miller, Mr. Harding, Mr. the certificate of the Reserve Bank Organiza- Warburg, Mr. Williams. tion Committee may be properly amended. In the matter of readjusting the geograph- C. S. HAMLIN, Governor. ical limits of Districts Nos. 6 and 11 in accord- Attest: ance with the power vested in the Federal Re- H. PARKER WILLIS, Secretary. serve Board by section 2 of the Federal Reserve Act. Whereas the Federal Reserve Board is au- MARCH 1,1916. thorized and empowered by section 2 of the SIR : I have the honor to inform you that the Federal Reserve Act to readjust the Federal Federal Reserve Board on February 29 adopted Reserve Districts; and a resolution transferring the banks situated Whereas upon consideration of (a) the peti- in Fairfield County, Conn., from District No. 1 a tion of certain banks in Louisiana for the trans- to District No. 2. fer from District No. 11 to District No. 6 of all Accordingly the following banks, now memthat part of Louisiana then situate in District bers of the Firsfc Federal Reserve District, and No. 11; (b) the printed briefs and exhibits filed owning stock in the* Federal Reserve Bank of by counsel, it appears to the Federal Reserve Boston, will be transferred to the Second Board that the convenience and customary Federal Reserve District, and will take out a Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

APRIL 1, 1916. FEDERAL RESERVE BULLETIN. 155 corresponding amount of stock in the Federal with the power vested in the Federal Reserve Reserve Bank of New York: Board by section, 2 of the Federal Reserve Act. Wliereas the Federal Reserve Board is au- Bethel National Bank, Bethel, Conn. thorized and empowered by section 2 of the First Bridgeport National Bank, Bridgeport, Conn, City National Bank, Bridgeport, Conn. Federal Reserve Act to readjust the Federal Connecticut National Bank, Bridgeport, Conn. reserve districts; and Danbury National Bank, Danbury, Conn. Whereas, upon consideration of (a) the peti- City National Bank, Danbury, Conn. tion of certain banks in Connecticut for the Greenwich. National Bank, Greenwich, Conn. First National Bank, New Canaan, Conn. transfer from District No. 1 to District No. 2 of Central National Bank, Norwalk, Conn. all that part of Connecticut east of the Con- Fairfield County National Bank, Norwalk, Conn. necticut River; (b) the answer of the Federal National Bank of Norwalk, Conn. Reserve Bank of Boston, Mass.; (c) the briefs of First National Bank, Ridgefield, Conn. City National Bank, South Norwalk, Conn. counsel and the oral arguments heard by the First National Bank, Stamford, Conn. Federal Reserve Board; it appears to the Fed- Stamford National Bank, Stamford, Conn. eral Reserve Board that the convenience and customary course of business and the best in- The question of transfers of capital stock terests of the Federal Reserve System will be from the Federal Reserve Bank of Boston to served by a readjustment of the geographical the Federal Reserve Bank of New York will limits of Districts Nos. 1 and 2. require your attention, and it is suggested that you follow in this matter the same procedure Now, therefore, the Federal Reserve Board which was laid down by the Board in effecting doth order— the transfer of the banks of West Virginia from (1) That District No. 1 be readjusted and the Fifth to the Fourth Federal Reserve Dis- altered so as to include the States of Maine, trict some nine months ago. I inclose a copy New Hampshire, Vermont, Massachusetts, of the Federal Reserve Bulletin for July, on Rhode Island, and all of the State of Connectipage 142 of which you will find the details of cut except the county of Fairfield. the process fully set forth. You should note (2) That District No. 2 be readjusted and in communicating with member banks that this extended so as to include the State of New proceeding is a readjustment under the Board's York, the counties of Monmouth, Middlesex, general power, and not a review on appeal. Hunterdon, Somerset, Union, Essex, Passaic, The Board will be glad to hear from you with Hudson, Bergen, Morris, Sussex, and Warren, respect to the arrangement of any details all situate in the State of New Jersey, and the that may seem to call for further adjustment. county of Fairfield, situate in the State of Con- Would it be agreeable that the transfer be necticut. made effective as of April 1 ? Please notify (3) That consideration of so much of the petithat the Board may enter its formal order. tion of the Connecticut banks as requests the Respectfully, transfer of that part of Connecticut west of the Connecticut River which is not covered by this H. PARKER WILLIS, Secretary. order be continued without prejudice until the Mr. PIERRE JAY, further order of the Board. Chairman Board of Directors, (4) That the alterations in Districts Nos. 1 Federal Reserve Bank of New York. and 2 directed in this order become effective April 1, 1916. (5) That the Federal Reserve Banks of Boston and New York be notified of the changes made in the districts referred to and directed to ORDER AMENDING THE GEOGRAPHICAL LIMITS take such action as may be necessary for the OF DISTRICTS NOS. 1 AND 2. transfer of membership of the banks included in. At a stated meeting of the Federal Reserve the territory affected. Board, duly held at its office in the city of (6) That a copy of this order be filed with the Washington, D. C, March 6, 1916. Comptroller of the Currency in order that the Present: Mr. Hamlin, Governor* Mr. Delano, certificate of the Reserve Bank Organization Vice Governor; Mr. Miller; Mr. Harding; Mr. Committee may be properly amended. Warburg; Mr. Williams. C. S. HAMLIN, Governor. In the matter of readjusting the geographical 'Attest: limits of Districts Nos. 1 and 2 in accordance H. PARKER WILLIS, Secretary. 32779—16-—2 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

156 FEDERAL RESERVE BULLETIN. APRIL 1,1916. Purchase of United SMes Bonds. Bonds Number offered. of banks. Two interesting movements in connection with bonds have culminated with the end of Boston $3,285,000 33 New York.... 1,577,500 16 the first quarter of the year. They are the Philadelphia.. 814,000 8 offering and sale to the 12 Federal Reserve C R l i e c v h e m la o n n d d . 1,2 1 2 8 6 0 , , 5 0 5 0 0 0 1 4 0 Banks of the first one-quarter of the $25,000,000 A Ch tl ic a a n g t o a... 2,2 3 9 5 6 9 , , 5 9 0 0 0 0 8 to be purchased yearly from member banks of M St. i n L n o e u a i p s olis... 4,2 1 7 5 5 6 , , 2 7 5 5 0 0 the Federal Reserve System and the exchange D K a a l n l s a a s s City... 5 3 0 5 5 6 , , 5 2 0 5 0 0 1 7 7 by the 12 Federal Reserve Banks of 2 per cent San Francisco. 1,008,500 15 Total... 16,041,700 141 bonds for 30-year 3 per cent bonds and 1-year 3 per cent gold notes. Both transactions are This letter and resolution adopted by the undertaken under section 18 of the Federal Federal Reserve Board on Tuesday, March 28, Reserve Act. In addition there have been were sent out on that date to each of the purchases by the 12 Federal Reserve Banks in member banks of the Federal Reserve System the open market. These purchases, under a which had offered bonds for sale under section ruling of the Federal Reserve Board, are per- 18 of the Act: mitted to be taken as an offset against the al- SIR: There is inclosed for your information lotment made to each of the 12 Federal Recopy of a resolution, adopted by the Federal serve Banks of offerings made through the Reserve Board at its meeting to-day, in con- Treasurer of the United States. nection with the sale of United States bonds offered by member banks of the Federal Re- The limit of $9,000,000 which could be deserve System through the Treasurer of the posited under the National Bank Act for na- United States under section 18 of the Federal tional banks to retire circulation and release Reserve Act. bonds for the current month was reached on You will note from the resolution that the March 16. No further deposits will be re- Board has determined under the circumstances to make no allotment of bonds for purchase at ceived until April 1. this time. This limitation of $9,000,000 a month does Very respectfully, not, however, apply to money deposited with C. S. HAMLIN, Governor. the Treasurer for the release of bonds offered Whereas it appears from statement furnished by national banks for purchase by Federal the Board by the office of the Secretary that Reserve Banks under section 18 of the Federal 11 out of the 12 Federal Reserve Banks have Reserve Act. purchased in the open market bonds in ex- Offerings by member banks through the cess of the amount which might be allotted Treasurer of the United States closed on March to such banks at the end of this quarterly period on a basis of one-fourth of $25,000,000 21, 10 days prior to the end of the month, statewhich the Board had considered alloting at ment being made to the Federal Reserve Board this time; and as of March 31. Whereas the bonds offered for sale through the The total of applications to sell bonds re- Treasurer under section 18 of the Federal ceived by the Treasurer of the United States Reserve Act aggregate more than twenty times the amount which might be allotted on and reported to the Federal Reserve Board was the basis indicated, aiid it will, therefore, be $16,041,700. The amounts offered in each dispossible on this basis to sell for each member trict and the number of banks making offerings bank less than 5 per cent of the amount are given below. offered for sale; and Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

APRIL 1,1916. FEDERAL RESERVE BULLETIN. 157 Whereas it appears that the only Federal Re- Subsequently Secretary McAdoo informed serve Bank which has not purchased in the the Board that conversions would be made open market bonds in excess of the amount one-half into 3 per cent gold bonds and onewhich might be allotted to it is under conhalf into 1-year gold notes. In the closing tract to purchase a sum very largely in excess of its allotment and has been prevented paragraph of his letter advising of this decision from consummating such purchase by rea- the Secretary said, "Upon further considerason of the fact that more than $9,000,000 tion I have concluded that the purposes of the in lawful money has been deposited with Act and the public interest will be better served the Treasurer during the current month to if banks are required to take the maximum retire circulation by national banks, and the banks under contract to sell are thereby pre- amount, i. e., 50 per cent, of the new issues in vented from making delivery: Now, there- 1-year gold notes and 50 per cent in 3 per cent fore, be it 30-year bonds.7' Resolved, that it is the sense of the Board that On March 8 the Federal Reserve Board sent no necessity exists for enforcing the require- out the following letter to Federal Reserve ment provided for under section 18 of the Banks stating in each instance the amount of Federal Reserve Act at the end of this quarterly bonds which the bank would be entitled to period ending March 31, 1916, and that it will convert: not at this time require the Federal Reserve Banks to purchase any of those bonds which I am directed by the Federal Reserve Board are offered for sale by member banks through to transmit to you the following information: the Treasurer of the United' States under the The Secretary of the Treasury has notified provisions of section 18. the Federal Reserve Board that he will issue Be it further resolved, that the Secretary be 3 per cent 30-year bonds and 1-year notes in instructed to send a copy of this resolution to exchange for 2 per cent bonds offered for conthe various Federal Reserve Banks and to the version by Federal Reserve Banks to the extent member banks which have offered bonds for of $30,000,000 during the present calendar sale in order that they may be notified of the year. On the basis of capitalization and suraction of the Board in the premises. plus adjusted to April 1, your allotment for the year will amount to . Conversion of 2 Secretary McAdoo, in a communication to per cent bonds may be made as follows: On the Federal Reserve Board on February 28, April 1, not to exceed one-half of your allotstated that he would, under section 18 of the ment; on July 1, not to exceed three-fourths Act, issue in exchange for United States 2 per of your allotment, including the amount converted on April 1; on October 1, balance of cent gold bonds, bearing the circulation priviyour allotment. If any bank fails to apply for lege, against which no circulation was outits full allotment before October 1, bonds and standing, 1-year gold notes and 3 per cent notes remaining will be distributed on a pro 30-year gold bonds, both without the circula- rata basis among the banks applying therefor. The denominations of bonds are from $100 to tion privilege, upon assent by the Federal Re- $10,000 and of notes from $1,000 to $50,000. serve Banks to the necessary obligation with All exchanges will be made as nearly as possithe Secretary of the Treasury binding them to ble on the basis of one-half 30-year bonds and purchase for gold at maturity the 1-year notes. one-half 1-year notes. Please notify the Board, The limitation upon the issue was $30,000,000 to reach Washington not later than March 20, the amount of 2 per cent bonds you will offer for the year 1916, and the conversion dates for exchange on April 1.. the first days of January, April, July, and October. These dates correspond with the interest The figures showing the allotment, which periods for the 2 per cent Consols of 1930. Un- have been adjusted to cover the changes by der this arrangement $15,000,000 may be con- reason of the transfer of banks in Fairfield verted on April 1 and $7,500,000 each on the County, Conn., from the Boston district to the two following dates. New York district, and the changes from the Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

158 FEDERAL KESERVE BULLETIN. APRIL 1,1916. Dallas district in the State of Louisiana to the be necessary for the applying bank to file a Atlanta district, based upon capital of Fed- new application with the Treasurer of the eral Reserve Banks at the close of business on United States that its wish to sell may be con- March. 3, were as follows: sidered at the next quarterly period. Notes issued under the conversion privilege will be termed "One-year Treasury notes/7 Amount of Banks. Capital. con- and will be designated " Series of January 1, versions. 1916-17." They are payable one year from Boston $5,058,995.00 $2,763,602 the date of issue, with interest at 3 per cent, New York.... 11,206,655.00 6,121,910 Philadelphia.. 5,256,100.00 2,871,275 which is payable on the 1st of January, April, Cleveland 5,945,100.00 3,247,658 Riehniond.... 3,336,750.00 1,822,783 July, and October. These notes are issued in Atlanta 2,583,058.00 1,411,061 Chicago 6,652,850.00 3,634,284 denominations of $1,000, $10,000, and $50,000. St. Louis 2,785,000.00 1,521,375 Minneapolis.. 2,555,550.00 1,396,033 The 3 per cent bonds are called " Three per Kansas City.. 3,004,600.00 1,641,337 Dallas........ 2,586308.66 1,412,836 cent conversion bonds," and will be desig- San Francisco 3,946450.00 2,155,846 nated as the series of the years of issue and of Total... 54/917,416.66 30,000,000 maturity, the first being "Series of 1916-46." They are payable 30 years from January 1 Several Federal Reserve Banks raised the of the year of issue, bearing interest at 3 per question whether the Treasury< Department cent, payable at the same quarterly periods as would at this time consider applications for the notes. The bonds are issued in denomithe conversion of the 1-year gold notes into nations of $100, $1,000, $5,000, and $10,000, 30-year 3 per cent bonds, and in answer to one both registered and coupon form. of these inquiries the Federal Reserve Board The Secretary of the Treasury, upon the sent, on March 13, the following reply: request of a Federal Reserve Bank, will open Your letter of March 8, relative to the exa suspense account with such bank for each change of 2 per cent bonds for 3 per cent bonds and 1-year gold notes, was referred to the Treas- loan, in which account will be credited all ury Department and is to-day returned with bonds acquired by the bank and charged all the following advice: bonds reissued or converted as directed by the "I have received your memorandum of Federal Reserve Bank having title thereto. March 10 inclosing a letter addressed to the After suspense accounts have been estab- Federal Reserve Board by the governor of the Federal Reserve Bank of Cleveland, in which lished the Secretary of the Treasury will advise he asks whether the Secretary of the Treasury the Federal Reserve Bank of all bonds received has determined that he will not consider appli- for the bank's account and of the disposition cations for the conversion of 1-year gold notes of such bonds or any part thereof in accordinto the 30-year 3 per cent bonds as provided ance with instructions given by the Federal in section 18 of the Federal Reserve Act. In reply I beg to advise you that the Secretary Reserve Bank. A statement of all transactions has taken no action in this matter and during will be furnished the bank at each dividend his absence nothing will be done in relation period for each loan, and interest on the bank's thereto." holdings will be declared on account of the It has been held that the limit of $9,000,000 bonds held in suspense. of deposits to be made by national banks for In order to have such suspense account the retirement of bonds securing circulation established a Federal Reserve Bank should in any one month stands irrespective of the make application therefor to the Secretary of allotment made under the requirement of the the Treasury, such application to be in the form law for the purchase of $25,000,000 in bonds of a certified copy of a resolution of the board yearly by Federal Reserve Banks. If an appli- of directors authorizing the action. cation to sell bonds under section 18 is not There were on March 1 national bank notes granted by the Federal Reserve Board it will outstanding, secured by United States bonds, Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

APRIL 1,1916. FEDERAL RESEEVE BULLETIN. 159 amounting to $711,129,418. This was a de- notes on March 1 are shown in the following crease of $7,794,072 since February 1. table: In addition to the national bank notes outstanding, secured by United States bonds, On deposit Inter- to secure On deposit l t a h w er f e u l w m er o e n o ey n , M a a n r c in h c r 1 e $ as 5 e 1 ,8 o 6 v 6 er ,8 9 F 5 e , b s r e u c a u r r y e d 1 b o y f Kinds of bonds on deposit. ra es te t . ba R F n e e k s d e n e r r o v a t e l es. b t a n o n a k t s i e o n c n o u a t r e l e s. $4,398,317. The amount of Federal Reserve bank notes outstanding, secured by United United States consols of 1930 2 $5,719,250 $588,926,450 United States loan of 1908-1918. 3 18,551,820 States bonds, on March 1 was $2,999,970. United States loan of 1925 4 100,000 27,224,900 United States Panama of 1936 2 512,500 52.251,440 The kinds of bonds on deposit to secure United States Panama of 1938......... 2 400,000 28,301,480 Federal Reserve bank notes and national bank Total 6,731,750 715,256,090 Statement of the public debt on February 29, 1916. DEBT BEARING NO INTEREST (PAYABLE ON DEBT ON WHICH INTEREST HAS CEASED SINCE PRESENTATION). MATURITY (PAYABLE ON PRESENTATION). Obligations required to be reissued when redeemed: Funded loan of 1891, continued at 2 per cent, called for United States notes $346,681,016.00 redemption May 18,1900; interest ceased Aug. 18,1900... $4,000.00 Less gold reserve 152,979,023.21 Funded loan of 1891, matured Sept. 2,1891 22,950.00 Loan of 1904, matured Feb. 2,1904. 13,050.00 Excess of notes over reserve 193,701,992.79 Funded loan of 1907, matured July 2,1907 535,000.00 Obligations that will be retired on presentation: Refunding certificates, matured July 1,1907 12,190.00 Old demand notes , 53,152.50 Old debt matured at various dates prior to Jan. 1,1861, and National-bank notes assumed by the United States other items of debt matured at various dates subsequent on deposit of lawful money for their retirement... 40,703,950.50 to Jan. 1,1861 901,460.26 Fractional currency 6,849,059.90 Total •. 1,488,650.26 Total • 241,308,155.69 INTEREST-BEARING DEBT (PAYABLE ON OR AFTER SPECIFIED FUTURE DATES.) Outstanding Feb. 29,1916. Title of loan. Authorizing act. Rate. i W ssu h e e d n . Wh o e r n p r a e y d a e b e l m e. able Interest payable. A is m su o e u d n . t Registered. Coupon. Total. P.ct Consols of 1930 Mar. 14,1900 2 1900 Payable after Apr. January, April, $646,250,150 $643,389,050 $2,861,100 1646,250,150 1,1930. July, and October. Loan of 1908-1918... June 13,1898 3 1898 Redeemable after February, May, 1198,792,680 47,203,200 16,742,260 63,945,460 Aug. 1, 1908; August, and payable Aug. 1, November. 1918. Loan of 1925 Jan. 14,1875 4 1895-6 Payable after Feb. 2162,315,400 101,295,600 17,194,300 118,489,900 1,1925. do Panama Canal loan: Series 1906 Ju D ne ec 2 . 8 2 , 1 1 , 9 1 0 9 2 0 , 5 a . nd 2 1906 Re A d u e g em . ab 1 l , e 1 a 9 f 1 te 6 r ; do..... 54,631,980 54,621,520 10,460 54,631,980 payable Aug. 1, Series 1908 do 2 190S Redeemable after do 30,000,000 29,737,520 262,480 30,000,000 Nov. 1, 1918; payable Nov. 1, 1938. Series 1911 Aug. 5,1909, Feb. 3 1911 Payable June 1, March, June, 50,000,000 40,921,800 9,078,200 50,000,000 4,1910, and Mar. 1961. September, 2,1911. and December. Postal savings June 25,1910 1911- Redeemable after January and 7,307,100 6,528,340 778,760 7,307,100 bonds (first to 1915 1 year from date July. ninth series). of issue; payable 20 years from date of issue. Postal savings June 25,1910...... 1916 Redeemable after do... 938,000 855,900 82,100 938,000 bonds, 1916-1936 Jan. 1,1917; pay- (tenth series). able Jan. 1,1936. Aggregate of 1,150,235,290 924,552,930 47,009,660 971,562,590 interestbearing debt. 1 Of this original amount issued, $132,449,900 have been refunded into the 2 per cent consols of 1930, and $2,396,800 have been purchased for the sinking fund and canceled, and $500 have otherwise been purchased and canceled. 2 Of this original amount issued, $43,825,500 have been purchased for the sinking fund and canceled. GROSS DEBT. NET DEBT. Debt bearing no interest $241,308,155.69 Gross debt (opposite) $1,214,359,395.95 Debt on which interest has ceased. 1,488,650.26 Deduct— Interest-bearing debt 971,562,590.00 Balance available to pay maturing obligations (see above), 104,135,180.74 1,214,359,395.95 Net debt 1,110,224,215.21 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

160 "FEDERAL RESERVE BULLETIN. APRIL 1,1916. THE PRESENT COTTON SITUATION. a ready market up to 12J cents per pound, and cottonseed advanced in a corresponding degree so as, to give producers Speaking before the Birmingham Chamber the equivalent of $20 to $22.50 per bale from sales of seed. of Commerce in Alabama Friday evening, The advance attracted speculative interest, and by De- March 10, Hon. W. P. G. Harding, member of cember some enthusiasts had visions of 15 to 18 cents per pound. Many farmers and merchants who, a few weeks the Federal Reserve Board, discussed the presbefore, would have sold most gladly at 12 cents, caught ent cotton situation in part as follows: the infection and decided to hold for the much higher prices which they felt were coming. During the next six weeks, assuming normal weather conditions, the cotton crop of 1916 will be planted. While About this time, however, the export movement began the acreage put in cotton will bear a direct relation to the to compare unfavorably with the previous season. Except size of the new crop, other factors must be considered in as to coastwise trade, our ocean freights are carried almost reaching conclusions as to the final outcome. The quality entirely in foreign bottoms. Of these, German vessels are aind amount of fertilizer used, the character of the season, idle, being interned in neutral ports throughout the world, methods of cultivation, the ravages of the boll weevil and or else blockaded in the waters of the North Sea. This other insect damage, will all have an important bearing, scarcity of shipping has caused a great advance in ocean so th&t under some conditions it is conceivable that freight rates, which are from six to ten times the normal, so 30,000,000 acres planted in cotton will produce a larger that rates on cotton from American ports to Liverpool yield than 35,000,000 acres under other conditions. The have been ruling as high as $3 per hundred pounds, or new crop acreage, however, which will probably be $15 per bale, being 3 cents per pound. Even at these known definitely within the next 60 days, will play an abnormal rates, exports of cotton have been restricted, important part in fixing the market value of that portion as shipowners, acting probably umder instructions from of the crop of 1915 which remains unsold, for it is likely their Governments, have given preference to cargoes of that not until July will reports of condition of the growing grain and munitions. crop become a factor in pric^ control. It will be remem- Under these conditions stocks abroad have been greatly bered that during last July there was a decided slump in reduced, and during the month of January there was a the cotton market, which brought about an extremely time when the stock at Liverpool was sufficient to supply nervous feeling throughout the South. Despite the very British spindles for less than six weeks, with prices ruling vigorous and diligent campaign that had been made in at 18 cents, against 12 cents in New York. There is the spring of 1915 for a sharp reduction in cotton acreage, reason to believe however, that during the past month reinforced as it was by tpe severe object lesson of the dan- arrangements have been made to increase the ship room gers of overproduction that had been impressed upon available for cotton, and there has been some increase in cotton growers during the preceding fall and winter, it the supply at Liverpool, London, and Manchester. The was found that the area planted in cotton had been reduced total stocks in Great Britain on March 3 have been estiby only about 15 per cent. The season up to JaFy had mated to be 1,000,000 bales, against 1,452,000, 1,289,000, been propitious and there was much talk of a new crop of and 1,498,000 bales for the same date in 1915, .1914, and at least 14,000,000 bales. It was known also that Great 1913, respectively. The depletion of stocks on the Conti- Britain intended to declare cotton an absolute contra- nent is still more marked. The Financial Chronicle estiband, which was regarded as meaning the loss el a mates the supply of stock at Hamburg, Bremen, and market for about two and one-half million bajles which Trieste to be about 1,000 bales at each point, against a had usually gone to Germany and Austria, and which had total of 384,000 bales on March 1, 1915, 570,000 bales in to a considerable extent during the season of 1914-15 1914, and 578,000 bales in 1913; and, including stocks at reached those countries through neutral ports. Havre, Marseilles, Barcelona, and Genoa, it estimates continental stocks on March 3 at 479,000 bales, against Farmers and business men throughout the South were 1,083,000 bales in March, 1915, 1,065,000 in 1914, and aroused, and, without any definite organization, but 1,089,000 in 1913. Authorities place the total visible through the force of public sentiment, a policy of gradual supply for the world on March 3 at 5,777,448 bales, against marketing was decided upon. Warehouse facilities had 7,607,227, 6,107,140, and 5,491,952 bales in 1915, 1914, and been found to be adequate, and the banking situation 1913, respectively. In Egypt figures relating to cotton was such as to render ample funds available to carry out receipts are expressed in cantars, approximating 100 such a policy. At the same time it became evident pounds, and exports in bales which weigh about 750 that the yield would not be as large as had been anticipounds. Reducing the figures to the equivalent of 500 pated, so that consumers, finding that there was no rush pounds to the bale, receipts of cotton at Alexandria from of cotton to the market for sale at forced, prices, began August 1 to February 9 have been, according to the same to contract for their wants, and prices advanced rapidly. authority, 790,300 bales, against 942.500 bales last year The new crop, instead of bringing 7 to 8 cents per pound, and 1,350,000 bales for the same date in 1914. as had been predicted by many pessimistic persons, found Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

APRIL 1,1916. FEDERAL RESEBVE BULLETIN. 161 A report dated Friday night, March 3, gives the fol- I quote as follows from a letter received from him: lowing statement as to the movement of the crop for the "It is reasonably plain that if we export 6,500,000 bales week: Total receipts, 107,849 bales, against 156,956 and of cotton this year, we shall not have more than about 142,403 bales for the two weeks immediately preceding. 1,800,000 bales left over in the United States. This Total receipts since August 1, 1915, 5,402,039, against includes the cotton at the ports and interior towns as well 8,093,162 for the same period of 1914-15. Decrease since as the unmarketed supply on the plantations. I do not think it can be considered burdensome with the financial August 1, 1915, 2,691,123 bales. Exports for the week, facilities that the Federal Reserve Banks provide, and if 142,143 bales, of which 73,9.72 were to Great Britain, the war ends during the present summer, I believe that all 24,125 to France, and 44,046 to the rest of the Continent. the cotton that is leftover and all that America can possibly Total exports August 1, 1915, to March 3, 1916, to Great produce next year will be required to fill up the vacuum created by the blockades and the war." Britain, 1,755,493 bales, against 2,487,993 bales for the same period last year; to France, 510,883, against 376,892; to Another view is given in the weekly cotton letter dated Continent, 1,295,565, against 2,672,188, making a grand March 4 of a well-known brokerage house. From this total of 3,561,941, against 5,537,073 last year, and 7,296,085 statement I quote: for 1913-14. The export movement therefore is approxL "The world's visible supply of American cotton is now mately 2,000,000 bales behind last year and nearly 3,750,000 1,604,000 bales less than at this date last year and 64,000 bales under 1914. There seems to be no material difference less than in 1914, The stocks of American cotton in Liverof opinion on the part of various authorities as to stocks of pool with one exception are the smallest in the past 10 years, and practically the same is true of continental Cotton held abroad or as to the exports, but there is some stocks of American cotton. Our cotton markets are abdivergence in the views as to the domestic situation. A solutely closed to Germany and Austria, which was not the well-known cotton authority, who prefers not to be quoted, case at this date last year and yet in spite of the extraorgives me the following estimate of the supply of cotton in dinary advance in ocean freight and insurance (the rate to Liverpool is now $15 a bale as compared with about America on July 31,1916, at the close of the current cotton $1 August 1, 1914) we exported the first six months of year: the season 2,961,000 bales and to date 3,680,000, clearly indicating an export movement for the season of fully Visible supply in United States July 31, 1915. 1, 300,000 6,000,000 bales. The domestic consumption for the first Unmarketed on plantations July 31,1915 1, 800,000 six months of the season amounted to 3,528,000 bales and it Crop 1915-16 (including linters). 12, 250, 000 is increasing as the season advances, foreshadowing a total of fully 7,250,000 bales for the year. With a supply of Total supply this season 15, 350,000 about 14,675,000 bales (made up from the carry over from American consumption. 7,000,000 last year of 2,765,000 bales, the crop estimated by the Total exports.. 6,500,000 Government at 11,161,000 and an estimated linter crop of 13, 500,000 750,000) and allowing 6,000,000 bales for export a,nd 7,250,000 for domestic consumption, we would close the Leaving on hand visible and invisible.. 1, 850,000 season with an apparent surplus of 1,425,000 bales." and checks his figures as follows: Therp is a difference in the estimates of these two Unmarketed July 31, 1915. 1,800,000 authorities of 425,000 bales. The first-mentioned estimate Crop 1915-16... 12,250,000 places the carry-over from last year at 3,100,000 bales, while the second puts the amount carried over at 2,765,000 Total supply from plantations. 14,050,000 In sight to February 26,1916 9, 554, 795bales. The first places the present crop, including linters, at 12,250,000 bales, while the second, accenting the Gov- Unmarketed supply February 26.. 4,495, 205 ernment estimate, figures the crop, including linters, at Stock United States ports, February 26. 1,410, 285 11,911,000 bales. The first estimate puts American con- Stock interior towns February 26.... 1,102,047 sumption at 7,000,000 bales and exports at 6,500,000 bales, Total supply in United States Febru- or a total of 13,500,000 bales, while the figures given by the ary 26 ... ... 7,007,537 second are 6,000,000 bales for export and 7,250,000 bales United States consump- American consumption, or a total of 13,250,000 bales. tion, season......... 7,000,000 Total takings to Febru- The first authority says further that from the apparent ary 26 4,684,000 surplus of 1,425,000 which is shown according to his figures "there must be deducted 1,179,000 bales of linters, Still to be taken. 2,316,000 429,000 carried over from last year and the linter crop of Exports, season 6, 500,000 this year, 750,000, every bale of which will go into the Exports to February 26. 3, 561,922 manufacture of explosives. This cuts the spinner's sup- Still to be ex- ply down to about 13,500,000 bales, leaving an apparent ported. 2, 938,078 surplus at the close of the season of about 250,000 bales." 5,254,078 I am informed that the Census Bureau in its statistics .1,753,459 delating to the uses to which cotton is put is confined to the Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

162 EEDEEAL BESERVE BULLETIN". APEIL 1,1916. consumption of raw cotton, including linters, and that compares well with that of February, 1914. The decline additional legislation will be necessary to enable the in cotton prices seems to have been definitely checked Census Bureau to report on the consumption of cotton about the 1st of March. It is said that several British which has been specially prepared or treated. At a recent merchant ships hitherto used as transports are to be rehearing before one of the House committees it was brought stored to commercial uses in the trade between New York out that the Census Bureau regards an estimate of 1,000,000 and Liverpool. Italy and Portugal together have seized bales of cotton used in America during 1915 for the manu- over 60 German steamers, which have been interned in facture of explosives as conservative, and the statement their ports, the presumption being that these steamers was made at the time by the representative of the bureau will be put into commission for mercantile purposes. At that it is possible that as much as 1,500,000 bales had been any rate, there has been an easing in ocean freight rates, used in this way during the year in the United States. It which now show a decline of 50 cents per hundred, or has been estimated unofficially that 2,000,000 bales were $2.50 per bale irom quotations current the latter part of used in Europe last year in the manufacture of explosives, February. Announcement was made a few days ago that but I am told that the Census Bureau has no figures which 12 steamships are due to arrive at an early date at Galthrow any light upon the consumption abroad of cotton for veston which will load with cotton from that port. The this purpose. latest issue of a recognized authority on the textile trade It is evident that much of the cotton now being exported has this to say regarding the demand for cotton: to France is being used for explosives, as most of the cotton "The margin of profit between the cost of raw cotton mills of France and all of those of Belgium are now within and the market values of goods in the United States is now the German lines and are presumably not running for lack of unusually wide, and it is the part of commercial wisdom cotton, although it is impossible to obtain definite informa- for the manufacturer to secure for himself this margin of tion on this point. Swiss mills are said to be very busy, profit no matter what his inclination or judgment may be but their supplies of cotton have been cut off recently with respect to a possible wider margin of profits in the because they were supposed to be selling to Germany and future. This consideration has induced a fair amount of Austria. Consumption by mills in Norway and Sweden, buying for the account of American spanners during the Holland and Spain, would be abnormally large if they past week. Were it not that much the larger part of the could get the cotton, but high freights and naval operations requirements of our mills for the season has already been in the North Sea have rendered their supply precarious. secured this buying might be counted upon as a sustaining Japanese mills will undoubtedly consume a great deal of and perhaps even as an advancing influence in the marcotton, but on account of proximity and lower freights kets for the immediate future. In addition to this buying they will probably take all they can from East India. The for American account, some buying for foreign account Bussian mills are reported to be busy, but their supplies of has been in evidence." American cotton must, for the present, come by way of The ability and disposition of the banks of this country Vladivostok, which means a long and expensive overland to take care of the legitimate wants of their customers, as haul on a railroad congested with war material. The port well as to carry well-secured loans for those who are not of Archangel, however, which is icebound at present, will customers, has never been greater than at present. At be open in May, and it is probable that Russia will add to the close of business on March 6 the total of all paper under its Btock of American cotton after that time. discount with Federal Reserve Banks, including redis- It is interesting to contrast the export movement during counts for member banks, open-market purchases of bankthe present season with that of the last. The outbreak of ers' acceptances, trade acceptances, and commodity loans the war in Europe on the 1st of August, 1914, resulted in a carried for member banks, was slightly over $51,000,000 practical stoppage of cotton exports until November. against total deposits held by these institutions of $454,- During December and January, 1915, the movement 761,000; while on January 2 the amount of paper under abroad was heavy. While this movement was stimulated discount was over $54,000,000 against deposits of $431, in February and March by the announcement of the 085,000. Except in the Richmond and Atlanta districts forthcoming blockade of British waters by German sub- the loans secured by cotton receipts are of a negligible marines, the volume of exports continued satisfactory amount, and in these two districts they have been conuntil early in May, or until the sinking of the Lusitania. siderably reduced since the first of the year. The total From this time on the export movement diminished bills discounted with the Federal Reserve Bank of Atappreciably, and the advancing tendency in cotton prices lanta, including the New Orleans branch, was, on January was checked, followed by the slump in July, to which 2, $8,200,000, On March 6 this amount had been reduced reference has already been made. During the present to $4,420,000. The amount of loans held by the Federal reason, exports from August to November ran considerably Reserve Bank of Richmond on January 2 was $7,612,000, ahead of the very light movement of the preceding year, and on March 6 the amount of its loans was $6,433,000. but since November, owing to the reasons already outlined, The amount of discounted paper held by the Federal Rethe export movement compares unfavorably with that of serve Bank of St. Louis on January 2 was $1,915,000, while the previous season, although the movement for February on March 6 tlie amount was $1,429,000. The loans of the Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

APRIL 1, 1916. FEDERAL RESERVE BULLETIN". 163 ' Federal Reserve Bank of Dallas on January 2 amounted the market at once, there would undoubtedly be a break to $4,911,000, and on March 6 to $4,550,000. in prices. But five months, or about 21 weeks, will elapse The same conditions are reflected in the statements of before any new cotton can come on the market. With member banks. In all sections of the country first-class the demand for export and from American spinners which commercial paper is sought for at abnormally low rates, seems assured', there is no reason to doubt the ability of and I may say that for several months past the chief con- the market to absorb much more than 100,000 bales per cern of the Federal Reserve Board over the monetary sit- week. I refrain, however, as I have always done, from uation in this country for the immediate future has been giving advice in particular cases. I believe that the that the unusually low rates prevailing in financial centers policy of gradual and orderly marketing of the crop has might lead to an unwise inflation of credits. There is been proved to be the correct one by the course of the every reason to believe that exports of cotton will con- market this season, and, while there are no doubt many tinue on approximately the present scale during the spring holders of cotton who will regret that they did not sell and summer months up to the close of the present cotton when prices were higher, it is no doubt true that the year, and there seems to be little danger of there being an higher prices last fall were obtainable by reason of the unwieldy surplus carried over into the next season. fact that there was no unseemly rush of cotton to the There is undoubtedly a considerable amount of unsold market; and, without regard to ownership, it is safe to cotton in the South which is being held by farmers and assume that the cotton held back has contributed its part country merchants, but the amount is probably no greater to the prices realized for cotton that has been sold. I wish than in some previous years, as the stocks reported at that each individual farmer would remember, when the interior towns on March 3 amounted to 1,080,000 bales, time comes for him to determine how much of his land he against 1,063,000 bales at the same towns oh March 5,1915. will put in cotton this spring, that we are living in unusual During the week ended March 3 the interior stocks de- times and that it is impossible for any man or any group creased 35,761 bales, and receipts at all towns were 84,838 of men to forecast with certainty what the consumption bales less than for the same week last year. Attention is of a staple like cotton will be. I believe in the gradual invited to a comparative statement of amount brought and orderly marketing of crops, but I believe just as firmly into sight and spinners' takings for the weeks ended March in the diversification of crops. 3, 1916, and March 4,1915: Farmers of the Northwest, who produce the bulk of the great food crops of this country, have learned that it is dangerous to place reliance in one crop, even though it be 1915-16 1914-45 a food crop, and, while they can not raise cotton, they In sight and spinners' diversify by planting different kinds of grain and by protakings. Week. A S u i g n . c e 1. Week. A S u i g n . c e 1. ducing more than one kind of food. I quote a statement that was made recently by a prominent bank in the Receipts at ports to Bales. Bales. Bales. Bales. Northwest: Mar. 3... 107.849 5,402,039 284,634 8,093,162 Net overland to Mar. 3... 35,173 1,011,489 31,314 921,677 "The investment market does not seem to be as active Southern consumption as the large amount of money in banks and the heavy savto Mar. 3 82,000 2,190,000 60,000 1,830,000 ings balances would ordinarily indicate. General interest Total marketed 225,022 8,603,528 375,948 10,844,839 Interior stocks in excess.. 135,761 634,711 164,959 943,420 rates are so low that many people are content with savingsbank interest. The demand for farm mortgages is very Came into sight during week 189,261 310 989 strong, but our farmers are in such excellent condition Total in sight Mar. 4 9,238,239 11,788,259 North spinners' takings financially that the supply of mortgages continues to be to Mar. 3 34,396 2,135,026 88,743 2,047,309 less then the demand. This, of course, has resulted in a decrease of rates to the farmers. Mortgages from the best 1 Decrease during week. farming communities of Minnesota and the Dakotas are Movement into sight in previous years. especially hard to obtain. In former years, when there were plenty of these securities, it was not necessary for Week. Bales. Since Sept. 1. capital to go into the newer parts of the Northwest unless attracted by high rates. It is probable that present con- 1914, Mar. 6 198,304 1913-14, Mar. 6.. 12,673,042 ditions will turn large amounts of money to investment in 1913, Mar. 7 154,692 1912-13, Mar. 7.. 11,856,556 1912, Mar. 8 281,157 1911-12, Mar. 8.. 13,421,418 the less populous portions of the Northwestern States and will result in increased settlement and greater value for Some private letters that I have received state that land. Whether this condition will result in an extended there were perhaps 2,000,000 bales of cotton held on movement 'back to the farm' can not, of course, now be March 1 by southern farmers and local merchants. If all predicted, but tendencies in that direction have already of this cotton, or any large part of it, should be thrown upon been reported from two or three sources." 32779—16 3 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

164 FEDERAL RESERVE BULLETIN. APRIL 1, 1916. I am sorry that I can not yet quote similar statements the doctrine of diversification, and let them point out the from southern sources, but I think within a few years, after dangers of the one-crop system. the South has learned the lesson of diversification, that like Remember, my friends, that if the war continues for conditions will prevail, at least in favored sections. six months longer, in all probability the purchasing power I am told that there are farmers in Alabama, and per- of Europe will be seriously impaired. The cost of munihaps in all Southern States, who have never grown a stalk tions and supplies is enormous, and food prices in the warof corn. Let the farmers realize, and I urge upon mer- ring countries are soaring. According to the Bureau of chants and bankers the importance of persuading them, Labor Statistics of the Department of Labor, food, taken that an increased acreage in cotton will be looked upon as as a whole in the United States, costs 3 per cent more to-day an argument in favor of lower prices for the remainder of than it did a year ago. Prices in Great Britain have inthe crop now being held, although it is by no means cer- creased about 44 per cent and in France about 23 per cent. tain that a large acreage would yield a larger crop than a In other belligerent countries the advance has been 100 smaller and better cultivated area. Let us suppose things per cent. Remember that the cotton exchanges are not turn out this year as some optimists predict. Suppose eleemosynary institutions, and that operators on cotton peace should be restored and there springs up a greatly exchanges have no sentiment except a desire for gain. increased demand for cotton. Under such conditions a Market opinions vary as conditions change, and operators large crop would, of course, sell for a great deal of money, are not consistent bulls or bears, but shift their position but with the experience of 1910 and 1911 before us, is there without notice as new conditions arise. The fact is realany reason to doubt that a moderate crop would sell for ized in all the cotton markets of the world that the course still more? On the other hand, suppose the war continues ; of prices depends primarily upon the supply, and for the suppose, unhappily, this country should become involved next three months at least estimates of supply will be —and remember that in times of stress, when it comes to based upon the new crop acreage. What this acreage will a choice between something to eat and something to wear, be in America depends upon the farmers of the South. food must be provided at any cost, while new clothes can Should they decide during the next few weeks to produce wait. Then I ask, would we not be far better off with a their foodstuffs at home and to plant cotton as a money moderate supply of cotton and an abundance of food sup- crop their position will be secure, but if, disregarding all plies? Why plant a larger area than can be cultivated the warnings and portents of the times, they decide upon a thoroughly? Why scatter high-priced fertilizer over a policy of all cotton, they will be taking a tremendous large field when it would be more effective concentrated risk which no prudent business man would care to assume. on a smaller? These matters must be determined now. As a factor in the cotton market the southern farmer is A month hence will be too late. Let the farmers, the most powerful at planting time. merchants, and the bankers of the South take counsel Men at some time are masters of their fates; together; and let the newspapers, and those published at The fault, dear Brutus, is not in our stars, the county seats particularly, advocate in every issue for But in ourselves, that we are underlings. the next six weeks, and with all their force and power, Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

APRIL 1,1916. FEDERAL RESERVE BULLETIN. 165 GOLD SETTLEMENT FUND. audit of the accounts of the gold settlement fund and the Federal Reserve Agents' fund, AUDIT OF FUND. for the period begun November 16, 1915, and ended February 3, 1916. Quarterly audit of the gold settlement fund Present while counting the gold certificates, was made on February 4 for the period from were the following gentlemen: Sherman Allen, assistant secretary, Federal Reserve Board; November 16, 1915, to February 3, 1916. Ray M. Gidney, settling agent; W. M. Imlay, Reports of the audit follow: representing Federal Reserve Board. Proper reconcilements of all balances have been WASHINGTON, D. C, March 9, 1916. received. The results of this audit are sliown To the FEDERAL RESERVE BOARD: in two exhibits attached hereto: Exhibit A— I have the honor to report that I was present Balances; Exhibit B—Gold certificates counted. at and witnessed the audit of the accounts of Respectfully submitted. the gold settlement fund and of the Federal W. E. CADWALLADER, Reserve Agents' fund for the period November Representing Federal Reserve Banks. 16, 1915, to February 3, 1916, made on Febru- J. M. SLATTERY, ary 4, 1916, by Messrs. W. E. Cadwallader, Representing Federal Reserve Agents. representing Federal Reserve Banks, and J. M. Slattery, representing Federal Reserve Agents^ there also being present Mr. Sherman Allen, settling agent, and Mr. Ray M. Gidney, deputy settling agent. Clearings and transfers through the gold Attached hereto are duplicate copies of the settlement fund from February 25 to March reports, dated February 15, 1916, of Messrs. 24 have amounted to $224,254,000. The net Cadwallader and Slattery made to the chairchange in the ownership of the gold held in man of the Conference of Federal Reserve Agents and to the chairman of the Conference the fund through these operations has been of Governors, with Exhibit A showing the $6,319,000, or 2.82 per cent of the obligations balances to the credit of each Federal Reserve settled. The total clearings and transfers made Bank and each Federal Reserve Agent, and since May 20, 1915, have been $1,641,845,000, Exhibit B containing a list of the United and the total net change in ownership of gold States Treasury gold certificates counted, the total amount in the two funds on the date has been 6.17 per cent of this amount, or of audit being $140,760,000, which amount $101,301,000. was verified by me. All balances have been verified in writing Amount of clearings and transfers, Federal Reserve Banks by the Federal Reserve Banks and Federal from Jan. 1, 1916, to Mar. 23, 1916, inclusive. Reserve Agents, the reconcilements being also attached hereto. Total Respectfully submitted. clearings. Balances. Transfers. W. M. IMLAY, Representing Federal Reserve Board. Settlement of— Mar. 2,1916 $55,306,000 $6,044,000 $6,048,000 Mar. 9,1916. ... 60,916,000 10,657,000 650,000 Mar. 16,1916 45,323,000 5,099,000 2,116,000 Mar.23,1916 52,112,000 4,440,000 1,783,000 SIR: Acting under instructions of the re- 213,657,000 27,240,000 10,597,000 Previously reported 375,238,000 41,792,000 12,253,000 spective chairmen of conferences of Governors Total 588,895,000 68,032,000 22,850,000 and Federal Reserve Agents, we have made an Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

166 FEDERAL RESERVE BULLETIN. AjPRiL 1,1916. Changes in ownership of gold. Total change from May 20, To Feb. 24,1916. From Feb. 25,1916, to Mar. 23,1916. 1915, to Mar. 23,1916. Balance to Federal Reserve Bank of— credit Feb. 24,1916, plus Balance Decrease. Increase. net deposits Mar. 23,1916. Decrease. Increase. Decrease. Increase. of gold since that date. N Bo ew st o Y n ork '. r... $ 8 4 7 , , 3 2 8 5 6 1 , , 0 0 0 0 0 0 3 7 4 4 4 9 , , 0 0 0 0 0 0 $ 1 3 0 , , 4 5 4 8 3 7 , , 0 0 0 0 0 0 $162,000 $99,000 $ 8 4 7 , , 2 4 8 1 7 3, , 0 0 0 0 0 0 Philadelphia .. $12,939,000 409,000 6,440,000 31,000 $12,970,000 Cleveland 8,933,000 023,000 10,025,000 998,000 7,935,000 Richmond.. 11,755,000 655,000 11,952,000 * 1,297,666 13,052,000 Atlanta 13,176,000 736,000 5,177,000 559,000 12,617,000 Chicago 5,001,000 119,000 6,519,000 4,600,000 9,601,000 St. Louis 7,461,666 621,000 2,647,000 26,000 ""7*427*666 Minneapolis 5,649,000 049,000 4,598,000 549,000 6,198,000 Kansas City 7,995,000 455,000 3,878,000 1,423,000 9,418,000 Dallas...... 12,131,000 471,000 10,036,000 565,000 12,696,000 San Francisco 16,659,000 039,000 4,368,000 2,329,000 18,988,000 Toted. 96,638,000 96,638,000 79,670,000 79,670,000 6,319,000 6,319,000 101,301,000 101,301,000 Gold settlement fund—Summary of transactions Feb. 25,1916, to Mar. 23, 1916. Balance Gold. Transfers. Settlement of Mar. 2,1916. Mar. 2,' Fed B er a a n l k R o e f— serve st F a e t 1 l e b 9 a m . 1 s 6 t 2 e . 4 n , t, d W ra i w th n - . Deposited. Debit. Credit. de N b e i t ts. d T e o b t i a ts l . c T re o d t i a t l s. cr N ed e i t ts. f 1 c u 9 a l n 1 n e d 6 a c , r e i a b n f m a g te l . - r Boston. $3,344,000 $6,272,000 $6,317,000 $45,000 $3,389,000 New York. 5,749,000 $6,048,000 $2,059,000 16,942,000 14,883,000 9,738,000 Philadelphia 6,289,000 5,202,000 9,608,000 4,406,000 10,695,000 Cleveland 11,713,000 $1,030,000 $1,098,000 847,000 1,299,000 452,000 10,037,000 Richmond........... 10,675,000 150,000 '$80," 666" 7,662,000 7,983,000 321,000 10,926,000 C A h tl ic a a n g ta o .. 1 5 0 , , 7 7 3 6 6 9 , , 0 00 0 0 0 160,000 "4,'666," 666' "2*i92,'666" 8 1 , , 7 4 7 2 9 7 , , 0 0 0 0 0 0 6 1 , , 5 6 8 6 7 3 , , 0 0 0 0 0 0 236,000 6 4, , 5 1 7 3 7 2 , , 0 0 0 0 0 0 St. Louis 2,621,000 so," 666" 1,584,000 6,095,000 4,511,000 987,000 Minneapolis 4,049,000 67,000 256,000 189,000 4,238,000 Kansas City.. 2,075,000 2,740,000 1,000,000 1,513,000 1,793,000 280,000 615,000 Dallas 9,501,000 200,000 209,000 443,000 234,000 9,092,000 San Francisco 3,989,000 2,000,000 750 000 57,000 172,000 115,000 1,354,000 Total 76,510,000 5,970,000 1,240,000 6,048,000 6,048,000 6,044,000 55,306,000 55,306,000 6,044,000 71,780,000 Balance Gold. Transfers. Settlement of Mar. 9,1916. Mar. 9, Federal Reserve last 1916, bal- Bank of— sta M t 1 e a 9 m 1 r. 6 e . 2 n , t, d W ra i w th n - . Deposited. Debit. Credit. de N b e i t ts. d T e o b t i a ts l . c T re o d t i a t l s. cr N ed e i t ts. f c u a l n e n d a c r e i a n i f n g te . r Boston.... $3,389,000 $64,000 $6,347,000 $6,283,000 '$3,325,000 New York : 9,738,000 $5,000,000 $500,000 9,948,000 21,490,000 11,542,000 5,290,000 Philadelphia..... .. 10,695,000 645,000 6,912,000 6,267,000 10,050,000 Cleveland 10,037,000 240,000 $500,000 150,000 1,320,000 1,533,000 $213,000 10,140,000 Richmond 10,926,000 ""'$356,'666' 120,000 6,484,000 6,639,000 155,000 10,851,000 Atlanta 6,132,000 1,588,000 1,654,000 66,000 6,198,000 Chicago 4,577,000 150,000 10,063,000 12,338,000 2,275,000 6,702,000 St. Louis ... . 987,000 56*666 4,900,000 7,612,000 2,712,000 3,749,000 Minneapolis... 4,238,000 154,000 284,000 130,000 4,368,000 Kansas City 615,000 630,000 2,750,000 1,231,000 1,920,000 689,000 3,424,000 Dallas . 9,092,000 340,000 1,261,000 921,000 10,013,000 San Francisco 1,354,000 87,000 3,583,000 3,496,000 4,850,000 Total.... 71.780,000 980,000 8,160,000 650,000 650,000 10,657,000 60,916,000 60,916,000 10,657,000 78,960,000 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

167 APRIL 1,1916. FEDERAL RESERVE BULLETIN. Gold settlement fund—Summary of transactions Feb. 25, 1916, to Mar. 23, 1916—Continued. Balance Gold. Transfers. Settlement of Mar. 16,1916. Mar. 16, last 1916, Fed B e a ra n l k R o e f s — erve st M a 1 t a e 9 r 1 . m 6 1 . e 6 n , t d W ra i w th n - . Deposited. Debit. Credit. d N eb e i t t. d T e o b ta it l . c T re o d t i a ts l . cr N ed e i t ts. b f c u a l n l e a d a n r c i a n e f g t i e . n r Boston $3,325,000 $5,837,000 $7,353,000 $1,516,000 $4,841,000 New York 5,290,000 $1,386,000 10,353.000 11,198,000 845,000 7,521,000 Philadelphia 10,050,000 ",$2*726*666" 7,35i;000 4,625,000 7,324,000 Cleveland 10,140,000 ;;;;;;;;;;;; "$i66'666" 74,000 769,000 695,000 10,166,000 Richmond 10 851 000 70,000 "'$566,'666' 6,298,000 6,888,000 592,000 11,013,000 Atlanta 6 198 000 $300,000 140,000 386,000 480,000 121,000 1,136,000 1,015,000 6,011,000 Chicago 6,702,000 250,000 2,178,000 7,962,000 5,784,000 4,774,000 St. Louis 3 749 000 3,623,000 4,208,000 585,000. 4,334,000 Minneapolis.. 4,368,000 250,000 71,000 321,000 250,000 4,368,000 Kansas City 3,424,000 1,616,000 1,858,000 242,000 3,666,000 Dallas............... 10,013,000 480,000 ............ 251,000 1,043,000 792,000 10,325,000 San Francisco 4,850,000 500,000 58,000 335,000 277,000 4,627,000 Total....... 78,960,000 SOO^OO 310,000 2,116,000 2,116,000 5,099,000 45,323,000 45,323,000 5,099,000 78,970,000 Balance Gold. Transfers. Settlement of Mar. 23,1916. Mar. 23, Fed B e a ra n l k R o e f s — erve st M a 1 t a l e 9 a r 1 . m s 6 t 1 . e 6 n , t d W ra i w th n - . Deposited. Debit. Credit. de N b e it t s . . d T e o b t i a ts l . c T re o d t i a ts l . cr N ed e i t ts. b f c u a l n l e 1 a d a 9 n r 1 c i a 6 n e , f g t i e . n r Boston $4,841,000 $1,398,000 $8,611,000 $7,213,000 $3,443,000 New York. . .. 7,521,000 $250,000 12,583,000 15,399,000 $2,816,000 10,587;000 Philadelphia 7,324,000 $120,000 1,004,000 7,131,000 6,127,000 6,440; 000 Cleveland . . 10,166,000 141,000 1,525,000 1,384,000 10,025,000 Richmond 11,013,000 $100,000 310,000 6,418,000 7,147,000 729,000 11,952,000 6,011,000 $400,000 78,000 512,000 1,867,000 1,355,000 5,177,000 C A h tl ic a a n g ta o 4,774,000 350,000 1,116', 000 7,039,000 7,318,000 279,000 6,519,000 St. Louis 4,334,000 700,000 339,000 1,326,000 5,752,000 4,426,000 2,647,000 Minneapolis.. 4,368,000 16,000 105,000 351,000 246,000 4,598,000 Kansas City 3,666 000 765,000 977,000 212,000 3,878,000 Dallas . . . 10,325,000 30,000 417,000 240,000 398,000 158,000 10,036,000 San Francisco 4,627,000 5p,000 250,000 59,000 76,000 17,000 4,368,000 Total... 78,970,000 130,000 830,000 1,783,000 1,783,000 4,440,000 52,112,000 52,112,000 4,440,000 79,670,000 Federal reserve agents* fund—Summary of transactions Feb. 15, 1916, to Mar. 23, 1916. Feb. 24, Week ending Mar. 2, Week ending Mar. 9, Week ending Mar. 16, Week ending Mar. 23, 1916, 1916. 1916. 1916. 1916. Federal Reserve Agent at— Balance. d W ra i w th n - . Balance. d W ra i w th n - . Balance. d W ra i w th n - . Balance. d W ra i w th n - . Balance. Philadelphia $4,100,000 $500,000 $3,600,000 $3,600,000 $3,600,000 $120,000 $3,480,000 Richmond 8,630,000 1,780,000 6,850,000 $50,000 6,800,000 6,800,000 270,000 6,530,000 Atlanta. 13,450,000 12,450,000 12,450,000 12,450,000 500,000 11,950,000 Chicago 3,760,000 1, poo, 000 3,760,000 3,760,000 3,760,000 350,000 3,410,000 St. Louis 4,540,000 4,490,000 50,000 4,440,000 4 440,000 4,440,000 Minneapolis...................... 2,350,000 """56,~666" 2,350,000 2,350,000 2,350,000 2,350,000 Kansas City........^ 6,5.00,000 6,500,000 "2*466," 666* 4,100,000 4,100,000 4,100,000 Dallas............ 1,190,000 1,190,000 570,000 620,000 """$80 "666" 540,000 540,000 San. Francisco. 10,780,000 ; 10,780,000 10,780,000 160,000 10,620,000 50,000 10,570,000 Total 55,300,000 3,330,000 51,970,000 3,070,000 48,900,000 240,000 48,660,000 1,290,000 47,370,000 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

168 FEDERAL BESERVE BULLETIN. APRIL 1, 1916. INFORMAL RULINGS OF THE BOARD. Below are reproduced letters sent out from all why you should, not buy this paper on a time to time over the signatures of the officers satisfactory basis without being subject to the 50 per cent or 100 per cent limit. of the Federal Reserve Board which contain MARCH 4, 1916. information believed to be of general interest to Federal Reserve Banks and member banks of the system: Holding Political Office. Stock Values. Your letter asking if an officer of a national Your letter quoting the resolution passed by bank which is a member of the Federal Reserve your board of directors with reference to stock System can hold political office is received. values to be paid to withdrawing banks has Your correspondent evidently has in mind a been received. You suggest that banks surletter issued by the Federal Reserve Board in rendering stock in the Federal Reserve Bank December, 1915, in which the opinion was exwill be paid par plus 3 per cent up to December pressed that officers and directors of Federal 31, 1915, and at the rate of one-fourth of 1 per Reserve Banks should not hold active political cent each month thereafter. offices. This suggestion, however, had no Assuming that the amount set aside for application to an officer of a national bank, losses represents an actual and not merely an unless he be a director of a Federal Reserve arbitrary estimate of the executive committee, Bank. the interest calculated to December 31 would seem clearly to represent the amount with- MARCH 6, 1916. drawing banks are entitled to receive on stock surrendered. As to the one-fourth of 1 per cent allowed Savings Accounts Pass Books. since that time, if this represents the actual Your letter of March 3 is received submitting earnings of the bank, the plan is in accordance a clause to be contained in the savings pass with the provisions of the Act; but if the earnbooks of your bank with reference to withings show an excess over this amount, it will drawals. be necessary to pay the withdrawing banks Regulation E of the Federal Reserve Board the actual book value of the stock, provided it (series of 1915), which relates to savings acis not in excess of par plus one-half of 1 per counts, provides in part that— cent per month since December 31. "The term 'savings accounts' shall be held FEBRUARY 23, 1916. to include those accounts of the bank in respect to which, by its printed regulations, accepted by the depositor at the time the account is Trade Acceptances. opened— You say in your letter, "If no mention were " (a) The pass book, certificate, or other simmade on the draft of the transaction being ilar form of receipt, must be presented to the based on an importation of goods, I take it bank whenever a deposit or withdrawal is made, that the acceptance might be classed as a and trade acceptance/7 The fact that importation " (6). The depositor may at any time be reor exportation is involved does not exclude the quired by the bank to give notice of an incharacter of a trade acceptance at all. Quite tended withdrawal not less than 30 days before the contrary. You will have seen from our a withdrawal is made." letter of January 21 that we have provided It is therefore suggested that the form should that trade acceptances which originate through require presentation of the pass books in case importations from foreign countries and which of a deposit and also in case of a withdrawal are indorsed by banks or bankers may, if nec- of the whole or any part of the deposit, and the essary, be taken within the range of bankers7 depositor should, over his signature, accept the acceptances; that is, between 2 per cent and terms prescribed. 4 per cent. There is, therefore, no reason at MARCH 9, 1916. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

APRIL 1, 1916. FEDERAL RESERVE BULLETIJST. 169 Intradistrict Clearing System. DISTRICT NO. 2. Registrar of stocks and bonds: Additions to and withdrawals from the intra- New York State National Bank, Albany, N. Y. district clearing system since the publication Second National Bank, Elmira, N. Y. of the lists in previous issues of the Bulletin DISTRICT NO. 3. are as follows: Trustee, executor, administrator, and registrar of stocks DISTRICT NO. 2. and bonds: Addition: Exchange National Bank, Marietta, Pa. Union National Bank, Troy, N. Y. Hazleton National Bank, Hazleton, Pa. Registrar of stocks and bonds: DISTRICT No. 3. Quaker City National Bank, Philadelphia, Pa. Withdrawals: National Bank of Catasauqua, Catasauqua, Pa. DISTRICT NO. 5. First National Bank, Freeland, Pa. Trustee, executor, administrator, and registrar of stocks Milton National Bank, Milton, Pa. and bonds: First National Bank, Mount Union, Pa. Peoples National Bank, Martinsville, Va. DISTRICT NO. 4. DISTRICT NO. 6. Withdrawal: Trustee, executor, administrator, and registrar of stocks Commercial National Bank, Columbus, Ohio. and bonds: First National Bank, Bradentown, Fla. DISTRICT No. 5. Manufacturers National Bank, Harriman, Tenn. Withdrawals: DISTRICT NO. 7. Murchison National Bank, Wilmington, N. C. Farmers National Bank, Louisburg, N. C. Trustee, executor, and administrator: National Loan and Exchange Bank, Columbia, S. C. First National Bank, Sioux Rapids, Iowa. DISTRICT NO. 8. DISTRICT NO. 6. Trustee and registrar of stocks and bonds: Withdrawals: First National Bank, Ozark, Ala. Merchants-Laclede National Bank, St. Louis, Mo. Ben Hill National Bank, Fitzgerald, Ga. DISTRICT NO. 9/ Holston National Bank, Knoxville, Tenn. Trustee, executor, and administrator: First National Bank, Flandreau, S. Dak. DISTRICT NO. 8. Addition: Trustee, executor, administrator, and registrar of stocks and bonds: State National Bank, Frankfort, Ky. First National Bank, Lake Preston, S. Dak. Withdrawals: American National Bank, Fort Smith, Ark. DISTRICT NO. 10. Farmers and Merchants National Bank, Fort Branch, Trustee, executor, and administrator: Ind. GreeleyNationalBank, Greeley, Colo. DISTRICT NO. 9. Rawlins National Bank, Rawlins, Wyq. Addition- Trustee, executor, administrator, and registrar of stocks First National Bank, Libby, Mont. and bonds: Withdrawal: First National Bank, Fort Morgan, Colo. First National Bank, Elbow Lake, Minn. Union National Bank, Greeley, Colo. DISTRICT NO. 12. DISTRICT NO. 11. Trustee, executor, and administrator: Withdrawals: First National Bank, Durant, Okla. Washington National Bank, Ellensburg, Wash. Tishomingo National Bank, Tishomingo, Okla. DISTRICT NO. 12. STATEMENTS FOR THE PRESS. Withdrawals: First National Bank, Coalinga, Cal. The Federal Reserve Board to-day voted to Citizens National Bank, Redlands, Cal. grant the appeal of certain Connecticut bank- Benton County National Bank, Corvallis, Oreg. ers for the transfer of territory west of the Bellingham National Bank, Bellingham, Wash. Connecticut River from District No. 1 to District No. 2, in so far as relates to the banks situated in Fairfield County, Conn. Fiduciary Powers. FEBRUARY 29, 1916. Applications from the following banks for permission to act under section 11 (k) of the The Federal Reserve Board to-day voted to Federal Reserve Act have been approved since defer final action on the appeal of the Connectifche issue of the March Bulletin as follows: cut banks asking transfer from District No. 1 to District No. 2, in so far as not already acted DISTRICT NO. 1. upon, until a date not later than June 15, 1916. Administrator: Bath National Bank, Bath, Me. MARCH 6, 1916. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

170 FEDERAL EESERVE BULLETIN. APRIL 1,1916. LAW DEPARTMENT. The following opinions of counsel have been National Bank v. Caslin (41 Minn., 552). A authorized for publication by the Board since bank, therefore, does not relinquish the rights the last edition of the Bulletin: and privileges of a member of the Federal Reserve System, nor cease to be such merely by Liquidating Member Banks. a vote to go into vokmtary liquidation. Any member bank, even though its shareholders have voted to go into liquidation, may file an application, under Section 5 of the Federal Reserve Act prothe provisions of section 18 of the Federal Beserve Act, with vides in part that: the Treasurer to sell bonds deposited with him for the pur- "When a member bank reduces its capital pose of securing circulation, provided such application is stock it shall surrender a proportionate amount made prior to the surrender of its stock in the Federal of its holdings in the capital of said Federal Reserve Bank. Reserve Bank, and when a member bank MARCH 9, 1916. voluntarily liquidates it shall surrender all of SIR: There has been referred to this office for its holdings of the capital stock of said Federal an opinion the question of whether a member Reserve Bank and be released from its stock bank in liquidation can file with the Treasurer subscription not previously called. In either of tHe United States an application to sell for case the shares surrendered shall be canceled. its account at par and accrued interest United States bonds which are held to secure circula- From this it is clear that when a member tion. bank liquidates it is required to surrender its Section 18 of the Federal Reserve Act pro- stock in its Federal Reserve Bank. Since a vides in part- bank becomes a member of a Federal Reserve After two years from the passage of this act Bank by subscribing to and being allotted and at any time during a period of twenty years stock, it follows that it does not cease to be a thereafter, any member bank desiring to retire member until such stock is surrendered and the whole or any part of its circulating notes, canceled. may file with the Treasurer of the United States This being true, there would seem to be no an application to sell for its account, at par and accrued interest, United States bonds securing reason why a bank in liquidation which has not circulation to be retired. surrendered its stock should not be entitled to make application to the Treasurer for the sale In section 1 of the Act the term " member of its bonds securing* circulation. bank" is defined to mean— Respectfully, " any national bank, State bank, or bank or trust company which has become a member of M. C. ELLIOTT, Counsel. one of the reserve banks created by this Act." To Hon. C. S. HAMLIN, A bank becomes a member of the Federal Governor Federal Reserve Board. Reserve System by subscribing to the capital stock of the Federal Reserve Bank of the district in which it is located, and upon issue of Warrants Issued in Anticipation of Assured Revenue. such stock to it is entitled to all the rights and Federal Reserve Banks may, under the provisions oi privileges of a member. A member is not dissection 14 of the Federal Reserve Act, purchase warrants solved by a vote of its shareholders to go into issued in anticipation of the receipt of"assured revenues." voluntary liquidation, but continues to exist The term "revenue " as applied to the income of a State or as a person in law capable of suing and being other political unit, does not include the proceeds of a sale of public securities. Warrants which are issued in sued until its affairs and business are comanticipation of the receipt of the proceeds of municipal pletely settled. National Bank v. Insurance bonds are not, therefore, eligible for purchase under the Company (104 U. S., 54, 74), Merchants' provisions of this section. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

APRIL 1, 1916. FEDERAL RESERVE BULLETIN". 171 MARCH 7, 1916. vidual, the term "revenue77 would undoubt- SIR: The question has been raised whether edly include such receipts, but as applied to the . warrants issued in anticipation of the sale of income of a State or other political unit the bonds the purchase of which is contracted for courts generally agree • that it has a narrower by a reliable buyer are warrants issued ccin and more • technical meaning which, they say, anticipation of the receipt of assured revenues/7 expressly excludes the proceeds of the sale of as provided by section 14. public securities. The American and English Encyclopaedia Respectfully, of Law states that " the word l revenue' is more M. C. ELLIOTT, Counsel. generally used to designate the income of the To Hon. C. S. HAMLIN, Government arising from taxation, duties, and Governor Federal Reserve Board. the like. The proceeds of lands or public stock sold would not be included as a part of Loans on Farm Land. the revenue of a State." Loans on farm land Come within the limitation imposed The Supreme Court of the United States, by section 5200 of the Revised Statutes of the United in a discussion of. the meaning of the word States. No national bank, therefore, may loan to any one "revenue/7 said, in the case of United States v. person, firm, or corporation on the security of real estate an amount exceeding 10 per cent of the capital and sur- Norton (91 TJ. S., 568), that, though the lexical plus of such bank. definition of the term "revenue77 is very com- MAEOH 23, 1916. prehensive and would probably be broad SIR: I am in receipt of yours of the 22d enough to include the proceeds of public lands asking for opinion of this office on the followand the proceeds arising from the sale of public ing question: Whether loans made by national securities, nevertheless the term " re venue banks on the security of farm land, under the laws77 is, as a matter of common knowledge, provisions of section 24 of the Federal Eeserve never applied to cases of this kind. The Act, are subject to the limitations imposed by Court of Appeals of New York, in the case of section 5200, Revised Statutes. People v. N." Y. Central R. R. (24 N. Y., 485, Section 5200 provides that: 490), specifically held that "revenue77 gener- The total liabilities to any association, of ally designates the income of the Government any person, or of any company, corporation, or arising from taxation, duties, and the like and firm for money borrowed, including in the does not include the proceeds of a sale of public liabilities of a company or firm the liabilities stock. of the several members thereof, shall at no time exceed one-tenth part of the amount of Story on the Constitution, section 880, in the capital stock of such associations, actudiscussing the meaning of the term " bills for ally paid in and unimpaired, and one-tenth raising revenue/7 as used in the Constitution, part of its. unimpaired surplus fund: Provided, says that "no one supposes that a bill to sell however, That the total of such liabilities shall any of the public lands, or to sell public stock, in no event exceed thirty per centum of the capital stock of the association. But the disis a bill to raise revenue in the sense of the count of bills of exchange drawn in good faith Constitution.77 against actually existing values, and the dis- It seems reasonably clear, therefore, that the count of commercial or business paper actually term "revenue/7 as used in paragraph (b) of owned by the person negotiating the same section 14 of the Federal Reserve Act and as shall not be considered as money borrowed. defined by the Supreme Court and other cases, vSection 24 of the Federal Reserve Act prois not sufficiently broad to include the proceeds vides that: of a sale of bonds, even though the sale is Any national banking association not sitassured by a binding contract with the pur- uated in a central reserve city may make loans chaser. As applied to the income of an indi- secured by improved and unencumbered farm 32779^16—-4 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

172 FEDERAL KESERVE BULLETIN. APRIL 1,1916. land, situated within its Federal reserve dis- hibited from making loans on farm land to any trict, but no such, loan shall be made for a one person, firm, or corporation in an amount longer time than five years nor for an amount which exceeds 10 per cent of the capital and exceeding fifty per centum of the actual value surplus of the lending bank. of the property offered as security. Any such bank may make such loans in an aggregate Respectfully, sum equal to twenty-five per centum of its M. C. ELLIOTT, Counsel. capital and surplus or to one-third of its time Hon. C. S. HAMLIN, deposits and such banks may continue hereafter Governor Federal Reserve Board. as heretofore to receive time deposits and to pay interest on the same. Where a national bank makes a loan on the Stamp Tax on Certificates of Stock. security of farm land, the maker and indorser The following opinion, rendered by the Attorney General at the request of the Secretary of the Treasury, holds of the note become liable to the national bank. that section 7 of the Federal Reserve Act exempts certifi- Such loans can not be treated as bills of excates of stock issued to member banks by Federal Reserve change drawn in good faith against actually Banks from the stamp tax imposed in Schedule A of the existing values, or as commercial or business act of October 22, 1914 (38 Stat., 759). paper actually owned by the person negotiating DEPARTMENT OF JUSTICE, the same. They are, therefore, not excluded Washington, March 10,1916. from the limitation imposed by section 5200 by SIR: I have the honor to acknowledge rethe proviso to that section. The question, ceipt of your letter of February 15, 1916, therefore, arises whether section 24 of the Fedwherein you ask my opinion as to whether cereral Reserve Act can be construed as an tificates of stock to be issued to member banks amendment to section 5200. by Federal Reserve Banks must be revenue It will be observed that no reference is made stamped. In my opinion they should not be so to section 5200 by section 24, and while a spestamped, and for these reasons: cific limitation is contained in this section, this The Federal Reserve Act of December 23, limitation applies merely to the value of the 1913 (38 Stat., 258), provides thatsecurity and the aggregate amount of such Federal Reserve Banks, including the capital loans that may be made by a national bank— stock and surplus therein, and the income dethat is to say, it is specifically provided that no rived therefrom, shall be exempt from Federal, loans shall be made for an amount exceeding State, and local taxation, except taxes upon 50 per cent of the actual value of the property real estate. offered as security. This limitation is in no This act plainly frees such stock certificates sense inconsistent with the provision of section of the stamp duty tax unless its force has been 5200 which relates to the amount which may modified by subsequent legislation. Whether be loaned to any one person, firm, or corporathis is so or not depends on the interpretation tion. It merely provides that the security of certain language in Schedule A of the act of must be double the amount of the loan. October 22, 1914 (38 Stat., 759), providing for In the opinion of this office, therefore, section a stamp tax on— 24 of the Federal Reserve Act can not be coneach original issue, whether on organization or strued as repealing any part of section 5200, reorganization, of certificates of stock by any Revised Statutes, and national banks are pro- such association * * * etc. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

APRIL 1,1916. PEDEBAL BESEBVE BULLETIN. 178 In my opinion the exemption created by the is intended to remain in force as an exception first-named act is in no wise affected by the to the general (citing cases); and, third, there was in this instance no irreconcilable conflict last quoted provision. The latter act can, and or absolute incompatibility, for both statutes properly should be, read as imposing a tax on could be given reasonable operation if the certificates of stock other than the capital stock presumption just named were recognized. of a Federal Reserve Bank. The rule con- See also Townsend v. Little (109 XL S., 512, trolling the case is announced by the Supreme 594); Ex parte Crow Dog (109 U. S. 558, 570); Court of the United States in Washington v. Rodgers v. United States (185 U. S., 83, 87, 89); Miller (235 U. S., 422, 428), as follows: United States v. Healey (160 U. S., 136, 146); In these circumstances we think there was United States v. Greathouse (166 XL S., 601, no implied repeal, and for these reasons: First, 605); People v. Hanrahan (42 N.W., 1124); such repeals are not favored, and usually occur State ex rel. v. Stratton (38 S. W., 83); Wheeler only where there is such an irreconcilable conflict between an earlier and a later statute that" v. Lane (15 Vt., 26). effect can not reasonably be given to both Respectfully, (citing cases); second, where there are two T. W. GBEGOBT, statutes upon the same subject, the earlier Attorney General. being special and the later general, the pre- To the SEOKETAKY OF THE TKEASTJKY. sumption is, in the absence of an. express repeal ? or an absolute incompatibility, that the special Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

174 FEDERAL BESEKVE BULLETIN. APRIL 1,1916, GENERAL BUSINESS CONDITIONS. ,908,000 on February 19, 1916, to $57,825,- General business and banking conditions are 000 on March 18, 1916. described in reports made by Federal Reserve Exchanges of the Boston Clearing House for the week ending March 18, 1916, were Agents for the 12 Federal Reserve Districts, $219,789,796, as compared with $138,833,545 the as of approximately March 25, substantially corresponding week last year and $217,128,678 as follows: for the week ending February 19, 1916. DISTRICT NO. 1—BOSTON. Building ajid engineering operations in New In practically all sections of New England England from January 1 to March 15, 1916, and in almost all lines of trade exceptionally amounted to $30,153,000 and were the largest good business is reported. While there is for over 15 years. The increase during the a feeling of caution among manufacturers preceding month was $12,386,000 and the inand the more conservative ones are trying crease over the corresponding period of 1915 to restrict buying to actual needs, the tendency amounted to $6,002,000. of the retailer is to buy more freely than he Exports at the port of Boston for February, has for some time past. 1916, were the largest, with the exception of The principal deterring factors are the May, 1915, of any month for over three years, embargo on freight, the high cost of raw mate- and amounted to $11,796,694, an increase of rial, and the shortage of skilled labor. Most $3,079,494 over the corresponding month of important is the embargo on freight. This 1915 and an increase of $3,474,227 over Janhas become necessary because of the sudden uary, 1916. Imports at the port of Boston expansion of trade and the lack of railroad during February, 1916, established a new and steamship facilities for handling it. It record, amounting to $28,581,61f. This is an is practically impossible to get some kinds increase of $16,342,388 over February, 1915, of freight from one section of this district to and an increase of $6,322,895 over January, another, and through freight to New York 1916. is indefinitely tied up. Receipts of the Boston Post Office for Feb- The money market shows signs of strength- ruary, 1916, show an increase of $85,428.77, or ening, this being evidenced by the fact that about 14 per cent over January, 1916. The banks appear unwilling to put out their money first 15 days of March, 1916, show an increase at the low rates that have been prevailing over the same period last year of $25,014.86, or and by the fact that municipal notes are about 7 per cent. selling to yield a better return than for some The Boston & Maine Eailroad reports operatmonths. Call money is 3 per cent; commer- ing income, after taxes for January, 1916, as cial paper 3 to 3i per cent for short dates; $974,258, an increase of $523,802 over the cor- 31 per cent upwards for six months; 4 to 4| responding month, of last year. The New York, per cent for a year; town notes, 3 to 3.40 New Haven & Hartford Railroad reports operper cent for six months; bankers' accept- ating income, after taxes for January, 1916, as ances, 90 days, 2 per cent upwards. $1,420,462, an increase of $362,524 over the Loans and. discounts of the Boston Clear- corresponding month last year. ing House Banks show an increase of $7,897,000 Reports show 137 failures in New England in over a month ago, and demand deposits have February, 1916, with liabilities of $1,348,200, decreased $10,369,000 during the same time. as compared with 165 failures with liabilities of The amount "Due to other banks" on March $1,923,437 during the same month last year. 18, 1916, was $137,838,000, an increase of Orders for boots and shoes continue very $5,807,000 over last month. The excess re- good, especially in women's fancy shoes. In serve of these banks has decreased from this business the high and increasing cost of Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

APRIL 1,. 1916. FEDERAL BESEBVE BULLETIN. 175 leather is an important factor. Some manu- The principal feature in the bond market is facturers report that in spite of an increase in the buying of securities exempt from taxes in prices retailers are buying freely and raw mate- Massachusetts due to the approach of April 1, rials are getting so high that a further advance which is tax day. An extremely heavy dein prices is expected in the near future. Manu- mand for this class of security is reported. facturers are nearing the end of their spring DISTRICT NO. 2—NEW YORK. run and already orders for the fall run are reported to be unusually heavy. Trade throughout the district continues Cotton mills are running as full as the supply on a broad scale, with no apparent signs of labor will permit, the shortage being prin- of a slackening in industrial activity at a cipally in the weaving departments. Good time when some contraction is usually expebuying is reported in all grades of goods, but rienced. The month has witnessed a steady is especially evident in fine and fancy lines. growth in the volume of business with pro- Mills manufacturing these goods are sold sev- duction considerably below consumption. In eral months ahead and the demand still con- spite of the advancing prices, which would tinues strong. Mills are taking some orders for ordinarily check the inquiry, for meichandise, deliveries starting in August or September and current demand is very large, especially for running the usual period of three months be- immediate deliveries of leather, .footwear,, dry yond that time. Some mills are reported to goods, and steel products. Manufacturers in be declining further advance orders at this these and other lines are rejecting urgent time, as the trend of cloth prices is upward and demands for goods which they are unable to mill treasurers wish to be in a position to take supply either because their plants are booked advantage of the higher prices. to capacity or because of inability to obtain Woolen and worsted mills are running at full raw materials. capacity with orders booked far in advance. Paper making, which is one of the most The report of the National Association of important industries in this district, furnishes Woolen Manufacturers as of March 1 shows a striking instance of the prosperity which has the greatest activity since these reports were been apparent in so many lines of business inaugurated some two years ago, the percent- during the past few months. Paper mills are age of idle woolen spinning spindles and worsted working full time and are unable to fill the spinning spindles being only 9.3 per cent and great volume of orders, being sold out several 7.9 per cent, respectively. It is also reported months in advance. Prices have advanced that the per centage of domestic business is sharply, the upward movement during the very much larger than is popularly supposed, past year ranging from $3 to $30 per ton. foreign business being a very small factor. Collections are unusually good, owing to the In the paper trade the lack of some raw fact that buyers are very anxious to maintain materials and the high price of others has an exceptional credit standing in order to brought about a condition that is unprece- secure precedence in the filling of orders. dented. The demand both at home and Large shipments of paper are being made to abroad for paper is abnormal. This has caused South American countries. The demand from many jobbers and consumers to anticipate European countries is also heavy but difficult their needs far in advance, thus making a to supply on account of the shortage of vessels. serious situation worse. In this industry the In all retail lines activity is well sustained freight embargo has also caused serious incon- in spite of the fact that retailers are between venience and in some cases considerable loss. seasons. Department stores are kept busy Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

176 FEDEBAL EESEKVE BULLETIH. APRIL 1» 1916. through, special and clearance sales. Stormy of $4,194,990, comparing with 329 in January, weather checked the retail trade in spring involving $8,810,900. Building operations in goods but has resulted in a further distribu- New York City fell off during February, tion of heavyweight articles. Wholesale and permits for new construction amounting to jobbing trade continues brisk, the leading dis- only $8,801,906, or 17.9 per cent less than in tributors in this city furnishing optimistic February, 1915. reports as to sales and collections. The pig-iron output in February totaled Manufacturers are overwhelmed with orders, 3,087,212 tons against 1,674,771 in February but axe hampered by a scarcity of raw last year, the former figure representing a new materials, especially dyestuffs, and by a scant maximum average production of 106,456 tons supply of labor. The absence of supplies is per day. further aggravated by a serious car shortage, . Railroad earnings continue to show striking which is uncommon at this period of the yeai advances over last year's totals, gross earnand has caused the railroads to declare ings for January aggregating $267,043,635, additional embargoes. Recent storms have which is an increase of $46,840,040 over the imposed further burdens on the carriers. coi responding month in 1915. Total net earn- The New York Clearing House banks on ings for the first month of this year were March 11, 1916, reported aggregate loans $78,899,810 as compared with $51,552,397 in of $3,343,715,000, deposits $3,552,286,000, January, 1915. and excess reserves $136,226,880. As com- Call money was loaned throughout February pared with January 29, 1916, loans have from If per cent to 2£ per cent with renewal increased $70,680,000, deposits have advanced rates If per cent. Time loans on collateral $29,101,000, while excess reserves have ranged from 2J per cent to 3 per cent for 60 decreased $41,574,860. Exchanges through days and 3 per cent to 4 per cent for long-time the New York Clearing House for the month money. Time money was slightly firmer than of February totaled $11,106,737,277, an in- in the preceding month. Bankers' acceptances crease of $4,624,910,730 over the same month remained unchanged at 2 per cent to 2f per ast year. On the New York Stock Exchange cent. Commercial paper ranged from 3 per transactions during the month of February in cent to 3 J per cent, the main volume of business both stocks and bonds aggregated less than being transacted at 3 per cent. Toward the in January, but showed a considerable gain end of February it became more difficult to over the corresponding month last year. place short notes under 3 per cent. Prices of shares were generally lower than Quotations at closing rates were fairly in January. The par value of bonds sold steady during February on London and Paris during February, 1916, was $80,390,000—an sight bills. Sterling rates were, high 4.76|, increase of $36,666,500 over February, 1915— low 4.75f, and on February 29 4.76f. while the number of shares of stock traded in Francs, high 5.86f, low 5.93, and on February on the exchange aggregated 12,080,136 against 29 5.87f. German exchange early in Febru- 4,347,866 in February last year. New in- ary was 74 and later strengthened to 77J, but corporations in Eastern States, embracing weakened to 73£ by the end of the month. concerns with a capital of $1,000,000 or over, Holland exchange continued at a premium totaled $365,995,300 during February, an throughout the month, and was quoted at increase of $312,045,300 over February, 1915. 42.43f at the end of February. Eussian bills Monthly reports at hand show 298 failures moved from 29f to 31f. The low rate on in this district during February, with liabilities Italian bills was 6.77, high 6.68J. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

APRIL 1,1916. FEDERAL RESEBVE BULLETIN. 177 DISTRICT NO. 3—PHILADELPHIA. SUMMARY OF REPLIES. General business throughout this district Is business What is the outis good, and our dependence on emergency- normal? look? orders is diminishing. Complaint of difficulty Industries reporting. Unin obtaining raw materials and satisfactory de- Yes. No. Good.Fair. certain. liveries is becoming rather general, resulting in heavy advance purchases. Earnings are Agricultural implements. Automobiles and parts breaking records in many lines and prospects Carpets, rugs, oilcloth, and linoleum... Cement, lime, etc. for the future are considered to be favorable. Chemicals (fertilizers, soaps, etc.) Clothing Advances in the quotations of steel and Coal and coal mining Confectionery iron products are being made with increased Cotton and cotton goods. Department stores frequency, but there is no indication that the Dry goods, notions, etc Electrical supplies and apparatus end of the upward trend is near. High prices Flour and grist mill products Furniture are being paid without hesitancy. The only Glass G roceries and food products apparent unfavorable condition is the delay Hardware Hosiery and knit goods in delivery of materials. Larger manufac- Iron and steel Leather, glazed kid, and shoes turers freely admit that the peak of the emer- Lumber and millwork Machinery, foundry products, locomogency demand for machine tools is well tives, etc passed. P Pa a p in e t r s a a n n d d p c a o p lo er ri p n r g o m du a c t t t s er 10 Petroleum and refining. The railroad lines operating in this district Pottery, pressed brick, etc Rubber goods report increased business and earnings. Shipbuilding. Silks, laces, etc Freight is still seriously congested, and it is Slaughtering and packing Tobacco and cigars stated that in many places this congestion Woolens and worsteds Miscellaneous (roofing materials, is augmented somewhat by abnormal buying plumbers' supplies, office machines, dental supplies, hats, watches, adwhich is in anticipation of increased prices in vertising).. 13 15 the near future and fear of scarcity of goods. Total 301 30 244 57 Better conditions are indicated by the reports of business failures. During Febru- Per cent in- Have profits crease in pro- increased proary there were only 78 failures in this district, duction costs portionately over 1 year ago. compared with 93 during February of 1915. Industries reporting. The liabilities were $1,237,000, compared with In In mawages. terials. Yes. No. $1,695,000 for the respective periods. Special reports received from a large num- Agricultural implements . 45 5 Automobiles and parts 2 ber of representative concerns throughout Carpets, rugs, oilcloth, and linoleum.. 5 Cement, lime, etc....... 3 this district indicate that trade in most lines Chemicals (fertilizers, soaps, etc.)..... 9 Clothing 25 7 is normal or better, and the outlook good. Coal and coal mining. — 3 Confectionery 5 Production costs are increasing at a rapid Cotton and cotton goods. 5 Department stores 3 rate, wages having increased approximately Dry goods, notions, etc 1 Electrical supplies and apparatus.... 3 11 per cent over one year ago and materials Flour and grist mill products 2 Furniture - 5 46 per cent. Profits have not increased pro- Glass 3 Groceries and food products 4 portionately with the rising costs of produc- Hardware - 7 Hosiery and knit goods a tion. The replies to our inquiry, as sum- Iron and steel 6 marized in the following table, show in some L L u ea m th b e e r r , a g n la d z e m d i l k lw id o , r a k nd shoes 1 8 0 Machinery, foundry products, loco- j detail the present situation in the various motives, etc i 37 industries: P P a ap in e t r s a a n n d d p c a o p lo e r r i n p g ro m du at c t t e s r . I ; 7 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

178 FEDEEAL RESERVE BULLETIN. APEIL 1,1916. SUMMARY OF REPLIES—Continued. provisions. Grain shipments continue to be a leading feature in the export trade, and since Per cent in- Have profits crease in pro- increased pro- the beginning of the year 9,315,339 bushels duction costs portionately over 1 year ago. with costs? have been shipped, including shipments of Industries reporting. Canadian grain through Philadelphia, as In I te n r i m al a s - . Yes. No. against 6,408,707 bushels for the corresponding period of 1915. Petroleum exports have Petroleum and refining 53 also shown a substantial increase. Pottery, pressed brick, etc 14 Rubber goods 42 The value of exports promises to be well Shipbuilding 100 Silks, laces, etc , 44 over $100,000,000 for the fiscal year ending Slaughtering and packing Tobacco and cigars June 30, 1916, as is signified by the following Woolens and worsteds 37 Miscellaneous (roofing materials, table: plumbers' supplies, office machines, dental supplies, hats, watches, ad- VALUE OF EXPORTS. vertising) 37 14 1913, June 30 $76,169,827 Total 97 212 1914, June 30 64, 881,040 Approximate averages. 46 1915, June 30 90,516,521 The following comparison of the results of the VALUE OF IMPORTS. investigation summarized above with the re- 1913, June 30 93,209, 678 1914, June 30 96,483,412 sults of a similar investigation six months ago 1915, June 30 72,948,013 is of interest: The Commissioners of Navigation report foreign and coastwise arrivals for the month March, Septem- 1916. ber, 1915. of 329 vessels with a tonnage of 635,480, compared with 309 vessels with a tonnage of Percentage of concerns reporting business normal or better - - 90.9 36.0 538,838 for February, 1915. The sailings are Percentage of concerns reporting the outlook "Good"..... 74.6 42.1 reported as 358 vessels with a tonnage of Percentage of concerns reporting the outlook 669,829, compared with 341 vessels and a "Fair" 17.5 21.6 Percentages of concerns reporting the outlook tonnage of 579,316 for February of last year. "Uncertain" 7.9 14.9 Percentage of concerns reporting the outlook "Poor" None* 21.4 Predictions of firmer money rates have not Number of concerns reporting the outlook to be either "Fair," "Poor," or "Uncertain"......... 83 217 thus far materialized. There is a good demand for money, but banks a-re too well supplied The business of the port of Philadelphia is with it to attempt to ask higher loan rates. larger than it has been for a long time. There Deposits are holding up well and clearings, have been substantial increases in imports of as shown by the following figures, indicate a corkwood, iron and manganese oresj nitrate of satisfactory trend of business: soda, magnesite, and sugar. Duties collected during February amounted to $1,754,662, an January and February— Per increase of $1,035,710 over February of 1915. Clearings at— cent A large part of the imports was due to heavy 1916 1915 increase. shipments of Cuban sugar to this city to be Philadelphia $1,975,601,495 $1,238,264,812 59.5 refined for England. A large refinery which Scranton 26,168,726 26,762,018 12.2 Reading. 18,163,299 13,305,625 36.1 has been closed for a number of years was Wilmington 22,227,616 12,782,764. 73.9 Wilkes-Barre 14,338,006 13,708,360 4.6 recently put into operation to help handle Trenton 19,568,399 14,302,868 36.7 Harrisburg 14,504,152 12,849,556 12.9 this increased business. Lancaster 15,340,563 11,015,371 39.3 York 6,974,583 6,804,532 2.5 Exports also showed a gain over February Chester 9,607,285- 5,038,948 90.7 Altoona . - 4,597,840 4,161,041 10.5 of last year, including large amounts of grain, Norristown 4,787,627. 3,531,744 35.5 oil, sugar, anthracite and bituminous coal, Total 2,131,879,591 1,362,527,639 55.7 lard, oil cake, gas and lubricating oil, and * Decrease. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

APRIL 1,1916. FEDEKAL KESEKVE BULLETIN. 179 DISTRICT' NO. 4—CLEVELAND. The reports from the garment industry indi- Conditions in trade and industry in district cate a good spring trade. In most cases busi- No. 4 have not changed materially in the last ness is better than normal. Dyed stuff, 30 days. especially blacks of guaranteed quality, are In the steel business the demand continues, getting very scarce. and there has been a further enhancement in Business failures as reported show 127 for values. Some reports indicate that the prices February, 1916, with liabilities of $894,497, as now prevailing are having the effect of checking against 138, with liabilities of $1,196,421, for business in certain lines, and it is believed that February, 1915. conservatism will prevail from now on in this Prosperous times with universal employrespect, at least in the larger companies. ment has served to quicken the real-estate The United States Steel Corporation state- business. There is a scarcity in a number of ment of unfilled orders shows that it has an communities of houses for rental. Heads of average of seven months7 work on its books, families are turning from rented houses to but for certain products promises earlier than homes of their own, and contractors report the first quarter of next year can not be ob- that more than the usual number of mediumtained. Among smaller companies the chief priced dwellings are under way. difficulty is getting raw materials and made-up There were 2,575 building permits issued in parts necessary in operation. the six largest cities of the district during the The movement of iron ore from the receiv- month of February, 1916, as against 2,307 for ing docks toward the furnaces is as active, as the same month last year. The valuation of .oar conditions in the trade will permit. Coke $4,571,212 for February, 1916, shows an inshipments from the Connellsville district for crease of 29.5 per cent over the same month the week ending March 11 were 463,244 tons. last year. The same cities report 41,971 per- This is over 20,000 tons above the average for mits for the year ending February 29, 1916, as the months of January and February. Ad- against 36,341 for the previous year. The vances in the pay of coal miners, with one of total valuation of building operations in these the strongest coal markets in some years, are cities for the year ending February 29, 1916, features of the bituminous coal situation in was $79,221,251, as compared with a total of this district. $67,223,585 for the year ending February 28, The glass business is in a very satisfactory 1915, or an increase of 17.8 per cent. condition. Post-office receipts in the same cities for Two 10-cent advances in Pennsylvania crude February, 1916, show an increase of 18 per oil, making the price now $2.60 a barrel, has cent, the totals for the month being further enlivened the oil industry, and there $1,121,836.51, as against $950,444.98 for the has been a noticeable increase in development same period in 1915. work in the various fields. Reports on collections continue on the whole Mercantile business is running ahead of last quite good, with exceptions among those who year by a substantial percentage. Many who are more or less seriously affected by the houses early in March were enabled to close freight embargoes. out much of their winter stock because of the The supply of loanable funds in the district return of unseasonable weather. While this is still large and rates continue low. Bankers, delayed trade in spring goods, it lessened the however, report a somewhat better demand stock carried over for the year and was an and borrowings by customers who have been off unexpected benefit. their books since early in 1915. Part of this Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

180 FEDEEAL RESERVE BULLETIN. APRIL. 1,1910. demand is seasonal, but it also seems to indi- DISTRICT NO. 5—RICHMOND. cate that the increase in loans is beginning to State legislation in South Carolina by enovertake the increase in deposits. actment of the Lancy-Odom Bill has created Deposits of member banks in the six princi- a condition in the matter of insurance suffipal cities of the district increased from Decem- ciently serious to cause the withdrawal from ber to March $44,198,373. Comparative fig- the State of practically all outside fire insurures of deposits and loans and investments for ance companies. Until the situation is modi- 1915 and 1916 are as follows: fied, and no tangible remedy is yet apparent, it is probable that the public will find it difficult to obtain adequate protection. A relative Deposits. Loans and investments. difficulty in effecting loans against stored mer- Mar. 4,1915. Mar. 7,1916. Mar. 4,1915. Mar. 7,1916. chandise and products may be reasonably expected and a curtailment of volume in com- Toledo $28,226,647 $35,160,779 $24,622,453 $31,095,023 Youngstown 10,041,486 14,138,713 11,916,405 13,025,371 modity paper would appear very probable. Cleveland 82,931,897 115,878,885 68,685,715 91,164,611 Cincinnati 72,912,642 86,026,493 63,741,466 72,690,882 West Virginia reports continued heavy ship- Columbus 27,018,047 30,995,408 21,075,329 22,389,678 Pittsburgh..; 183,824,987 258,873,444 164,332,747 196,388,487 ments of coal, and better volume of business at 402,955,706 541,073,722 354,374,115 426,754,052 higher prices in hardware supplies, and jobbing business generally better than last year. Clearing figures in the same cities for the Cotton-mill operations are reported most first 15 days of March are as follows: satisfactory. Shipbuilding in Baltimore shows rather unusual activity and completions ahead of con- First 15 days of— Increase. Per cent of tract time are bringing large bonuses. Ship increase. March, 1915. March, 1916. repairs are reported urgently desired and very profitable. Cleveland .155,251,795 $79,242,541 $23,990,746 43.4 Cincinnati 52,137,650 71,390,900 19,253,250 36.9 Money is easy, except for long terms, and Columbus 14,282,200 17,884,000 3,601,800 25.2 Pittsburgh 97,977,719 129,264,270 31,286,551 31.9 borrowers have no difficulty in obtaining suffi- Toledo 14,420,936 19,494,351 5,073,415 35.2 Youngstown 3,255,930 5,991,177 2,735,247 83.9 cient for their legitimate business needs. 237,326,230 323,267,239 85,941,009 36.2 Unfavorable weather conditions have delayed work on farms throughout the district. The increase in dollars and cents has been The loss of tobacco plants in South Carolina, larger in commercial departments than in sav- by freezing, indicates that the 1916 crop will be ings departments, but the increase in savings considerably below normal in that State. departments has been of a record-breaking Grains are more or less backward by reason of character. A number of banks report gains cold weather. Cotton acreage in the Caroin new savings business in February as exceed- linas will be slightly increased over last year. ing those of any other month in their history Fertilizer costs are higher than last year and by more than 50 per cent. it is questionable if farmers will use up to their A heavy decline in grain prices has stopped last year's standard, either in quantity or sales by farmers. Since spring work is close quality. Many faimers intend to raise the at hand, this will result in considerable grain bulk of their food supplies at home. There are being carried over for the time being, and will more hogs and cattle on the farms this year. eventually affect country collections. Truck farmers anticipate a good season on Burley tobacco is virtually all out of the smaller operations owing to reported shortage growers' hands. Good prices were obtained, of potato crop in the north and northwest. about $3 per hundred higher than last year. The lumber market is hampered by reason of Crop estimated about 75,000,000 pounds under congested terminals and apparently by some normal. discrimination as regards rail transportation. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

APEIL 1,1916. FEDERAL BESEB.VE BULLETIN. 181 in favor of higher freight tariff goods and Atlanta bank clearings for week ending products. March 18, 1916, showed a gain of $4,000,000 The cotton-oil Industry has suffered some- over corresponding week of 1915. Weather what by reason of high cost of seed, but corre- conditions through the State have been favorspondingly better prices for oil and meal indi- able for preparing and planting crops. The cate a fair margin of profit for the season's sale of fertilizer tags for the first two months operations. of 1916 were double that of 1915, indicated an increased acreage in cotton planting. At DISTRICT NO. ^--ATLANTA. Savannah, business conditions are reported Trade conditions are equal to those of last good. A $3,500,000 sugar-refining plant is to month. Bankers do not find in the current be built at that place. demand for loans much promise of higher At Mobile and in the interior the lumber interest rates. While business continues to business is good but is retarded, due to lack of expand, as recorded by bank clearings, the cars. Export business Is likewise good, but money required for such expansion appears to suffering for lack of shipping facilities. be in good supply. There is an apparently At Birmingham the iron and steel plants settled belief that the Federal Reserve System, continue to operate at full capacity, with large among other things, has created a stable con- amount of orders contracted ahead. Salesmen dition in the credit market. The result of this have been withdrawn in some iron and steel is seen in the apparent disposition not to bor- lines. The increased employment of labor at row in anticipation of a possible future scarcity, relatively high wages has had a good effect on as has been the custom in previous years. the retail business. Steel mills have been In the Louisiana district sugar, rice, and forced to refuse additional orders. Prosperity lumber are unusually active and the price is in the iron trade for the remainder of the year reflected by the advancing market. The con- is assured. stitution of Louisiana has been amended to The Alabama Power Co. is making extended free money ijx all forms, mortgage notes and improvements throughout the State and has similar paper from taxation, and to permit any announced plans to more than double its bank in any country to establish branches in capacity. At Anniston, Ala., it recently put the State. New Orleans continues to maintain in operation a hydroelectric steel plant, the her position as the second port of the United first of its kind in the South. Business condi- States, exceeding her nearest rival, Boston, by tions are very favorable in the Anniston Iron $11,000,000 for the year 1915. The large and manufacturing district, with the exception cotton terminals owned and operated by the of a wage strike in the large pipe industries. State are now in operation, and the State has The Florida planters report a successful fruit under construction large grain elevators, greatly season and early truck farming is in excellent increasing the port facilities. condition. Planters and shippers look forward Hattiesburg, Miss., and Jackson, Miss., report to a most satisfactory business during the conditions better than for many years. Lum- spring. ber is active but handicapped on account of While some districts report increase in cotton car shortage. The weather has been favorable acreage, the general tendency will be to diversifor preparing and planting, and more cotton fication and stock raising. will be planted in this section than last year. The lumber market throughout the belt Much, greater interest is being manifested in appears to be in a more healthy condition. stock raising. The sea-food canning industries The French Government recently let contracts of the Gulf towns are doing a large volume of with southern mills for 50,000,000 feet of business, but prices are low. These towns are lumber, and bids are being prepared covering all having heavy tourist travel. large contracts for other foreign Governments. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

182 FEDEBAL KESEBVE BULLETIN. APRIL 1,1916. in the Tennessee tobacco markets larger sales port some damage to the wheat crop, but there are reported, and the houses giving prizes are is difficulty in judging the extent at this date. active. Prices show very little gain. It is re- Those in the agricultural implement business ported that very little of the tobacco is in the are looking forward to a volume corresponding hands of the speculators. Much interest is With last season in spite of the decreased crop being shown in the next crop, and reports acreage. There is some complaint as to inaindicate considerable increase in acreage.. bility to get certain materials for factory pro- There has been a considerable increase in duction, particularly steel, but on the whole a passenger traffic as well as in freight business. satisfactory condition seems to prevail. There is some complaint in various parts of the The demand for automobiles is substantial, district of delayed shipments of raw materials but the shortage of railway equipment is causduetto railroad congestion and car shortage. ing manufacturers much uneasiness and diffi- Very little new construction work is being culty in making deliveries. placed. Chicago is reasonably active in the erection of apartment buildings and small manufactur- DISTRICT NO. 7—CHICAGO. ing plants, but office buildings exceed the pres- There is a continuance of general business ent requirements and, except in special cases, activity throughout the Seventh Federal Re- there will probably be no new demand in this serve District, with an abundance of banking line for some time. There is improvement in funds. Certain authorities consulted are of cement, with firmer prices and increased bookthe opinion that the increased costs in manu- ings. February showed a good demand for facturing and merchandising and the augmented brick, particularly when compared with prevolume of trade will soon bring about a reduc- vious years at the same season. tion- in the loanable money supply and there The coal operators and mine workers have will be at least a slight rise in rates. Institu- reached an agreement covering the scale of tions dealing with agricultural sections antici- wages to be paid the miners for the ensuing pate a spring demand, although this may not be period of two years, and the coal which was fully realized, due to the reported volume of stored by large consumers, the railway comoutside money which has been loaned on first panies, etc., will have a tendency to restrict the mortgages at low rates and higher valuations. sales from the mines and may temporarily This outside money is said to have materially lower prices. The heavy requirements of the assisted northern Iowa, which suffered from railroads and the steel mills, with their allied the disaster to its corn crop last fall. The industries, may tend to somewhat relieve this banking sentiment is generally optimistic situation. as to the prospects. Undue inflation in credit, Wools, silks, and linens are rising in value, merchandise, and securities is feared in some and mill deliveries are reported unsatisfactory, quarters, and these things are being carefully owing to the large demand for goods. Merwatched by the more conservative. chants are purchasing heavily at the new quo- Iowa reports a shortage of seed corn, but it is tations, and collections will depend upon their thought that this will be offset by the more ability to dispose of their stock. There is no careful testing and selecting of seed. Sleet doubt of the increased purchasing power of- the storms threatened some damage, but the out- average wage earner, but the question exists in look is said to be as favorable as normally at some quarters as to whether the retailer is not this time of year. Michigan advises that fruit overstocking, possibly in anticipation of a prospects are good, wheat fairly well protected general shortage of goods later. during the winter, and weather entirely Grand Rapids furniture factories are runseasonable. Sections of Illinois and Indiana re- ning full time and turning out a large volume Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

APRIL 1,1916, FEDERAL RESERVE BULLETIN. 183 of product at good prices. The Government only fair, but on the whole the outlook is good report showed large farm reserves of wheat and the manufacturers are very hopeful for the March 1, and these, together with the new future. crop, even if the fall wheat is short of last Distribution through mail-order houses conyear's supply, should furnish plenty for all nec- tinues to increase with automobile accessories, essary requirements for the ensuing year. phonographs, vacuum cleaners, and a few other Corn is firm, and oats at a somewhat low pricOj luxuries especially in demand. due to large farm stocks, indifferent cash de- The piano industry shows improvement, but mand, and inability of shippers to fill sales be- the increased cost of materials and advancing cause of various embargoes placed by the east- wages are commented upon, as is the shortage ern railroads. of skilled labor. The grocery business is having increasing The activity formerly reported in steel is distributive sales, a favorable outlook, and fair well maintained, and the buyers are willing to collections. Heavy .demand in hardware is pay the present abnormally high prices if they apparent, prices are higher, and the wholesale can get the material. The railroads are said houses report difficulty in procuring goods. to be liberal purchasers, some for 1917 de- An active trade still continues in leather, livery. Current prices are very firm with an although this is usually the slow time of year. upward tendency. Collections reported good Business is above normal, and a record volume with the exception of certain points in southis anticipated by some authorities. The raw ern Michigan. materials are at high prices and belting leather This year has developed an exceptional dehas advanced. In the latter line a slight de- mand for watches, and factories state they are crease in sales may result from the heavy pur- running full time, although February and chases by consumers and jobbers during the March are usually rather quiet, with the best past few months. Collections are said to be sales at holiday time. good. The market for wool has not changed mate- Shipments of live stock are running heavier rially, although the volume of wools moving than than a year ago, and values are the highest to the manufacturers is said to- be less than has since 1910. Stock in the country is reported been the case for the past four months. This as increased in number with the. possible ex- is attributed to past accumulations to cover ception of heavy feeding cattle. There seems requirements for the next few months. 'Woolen to be some decrease in the cattle on feed. The mills are busy, and jobbers and retailers are packing establishments advise that trade is, buying with a freedom which will probably brisk, with a heavy export demand, and ship- affect collections if .the anticipated demand ments retarded by lack of transportation from the consumer fails to materialize. facilities. Clearings in Chicago for the first 15 days of Distilleries are running at capacity. The March were more than $175,000,000 in excess 1916 supply of Kentucky whisky is estimated of the first 15 days of February, and amounted at 20,000,000 gallons, with a production to Feb- to $908,000,000, as against $728,000,000 for ruary 1 of 2,000,0.00 gallons more than during the first 15 days of March in 1915. Clearings the same period last year, but less than an reported by 17 cities in the district outside of average four-year crop. Breweries are re- Chicago amounted to $225,000,000 for the first ported as transacting only a fair volume of 15 days of March, 1916, as compared with business. $168,000,000 for the first 15 days of March, A general improvement in the lumber indus- 1915, and $194,000,000 for the first 15 days of try is reported, with, firm and advancing prices. February, 1916. Deposits in the 8 central re- In some localities collections are said to be serve city member banks in Chicago were Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

184 FEDEKAL BESERVE BULLETIN. APEIL 1,1916. $648,000,000 on March 21, 1916, a decrease of or two ago, a car shortage was reported from $4,000,000, as compared with February 17, this district, and this situation continues at 1916. Their loans were $438,000,000, an in- this time. However, it is not so serious as crease of $12,000,000, as compared with the noticeably to impair the movement of freight, same date. but is nevertheless receiving the careful consideration of railroad operators. DISTRICT No. 8—ST. LOUIS. Figures on the winter wheat crop in this district The active properous condition of all busi- have been compiled from private sources, and ness interests in this district, which has been it appears that the acreage is somewhat smaller noted in the last two reports continues. In than reported in the March issue of the Bullegeneral, it may be said that February was tin. Serious damage has been reported from notable for increases in price in practically every portions of the district, particularly the southline, and for the marked scarcity of raw prod- central part of Missouri, but the general opinion ucts in probably a majority of the manufac- from those in a position to judge seems to be turing industries. that it is yet too early to make any definite Practically all classes of merchants report forecast on the 1916 crop. It appears difficult that the question of delivery is more important to estimate the extent of damage reported in to them than that of price. The price of raw certain localities until the frost is out of the material in many branches has gone up rapidly ground and it can be definitely determined during the past 90 days, but even so, there whether or not the roots of the wheat are killed. seems to be no slacking in the demand for The 1915 cotton crop was profitable to finished articles even at a marked increase in southern planters, and their prosperity had its cost. Retailers as well as wholesalers feel the effect on the season's demand for mules from result of this activity, and practically all of the the southern part of this territory, this year's large department stores in St. Louis report business being a distinct improvement as comrecord business for the month of February. pared to that of 1915. The supply of cattle, The revival of business seems to have spread hogs, and sheep has been somewhat limited in from merchants and manufacturers to the the past 30 days, and this is, in a measure, the building trade, and, in turn, to operators in cause of the marked increase in price which is real estate. There has been a marked in- noted. Prices for cattle and hogs have adcrease in the building permits in the large vanced materially and the demand continues cities, and this/0 among other causes, has con- active. The trend of the horse market seems tributed to the recent rise in price of lumber to be upward, and it is reported that the United and other building materials. Large trans- States Government is in the market for horses fers of real estate are noted from day to day, suitable for Army use. and, in general, the real estate market is more An examination of the condensed statement active than it has been for many months. of the banks belonging to the St. Louis Clearing The railroads operating in this district con- House Association furnishes some interesting tinue to show gains equal to, or higher than, facts. Forty-four banks are members of the those reported during December. The increase St. Louis Clearing House, and of these, eight in net earnings during December was particu- are members of the Federal Heserve System. larly noticeable in the roads operating in the During the period from December 31, 1915, to northern section of district No. 8. The in- March 7, 1916, loans and discounts of these 44 creases noted for January, 1916, seem to be banks have increased nearly $19,000,000, more general, every trunk line in the district whereas deposits have increased during this showing substantial gains in gross and net same period over $24,000,000. This has ocearnings as compared to last year. A month curred despite the activity of general business Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

APRIL 1,1916. FEDERAL BESEEVE BULLETIN. 185 and the considerable amount of new financing for the first half of the year, and in many cases which has been undertaken. The banks, par- throughout all of 1916. Reports of January ticularly those in the large cities, still hold and February building permits from the prinexcess reserves and are in the market for in- cipal cities show substantial increases as comvestment of surplus funds. Commercial paper pared with a year ago. of the best names is quoted at 3 to 3} per The grain market has shown no considerable cent, with other names an eighth to a fourth recovery from the low point touched by the higher. The demand is active, and the brokers break in prices of last month. Elevator stocks report a somewhat well-defined feeling that of wheat in Minneapolis and Duluth are rates will be stronger in the near future. The 28,289,000 bushels, or an increase of 5,722,000 bank loan rate to customers is, if anything, bushels over a year ago. Crop year receipts lower than it has been for several months. to the 18th instant were 212,813,000 bushels, The average in St. Louis is probably around 4J or an increase of 76,494,000 bushels as comper cent, with proportionately higher rates in pared with a year ago. The Hour production other parts of the district as the size of the continues at about the same totals as during community decreases. last month. The general impression among those well There are some reports of spring agricultural informed seems to be that the money market is activities from the western portions of the dissomewhat unsettled, due to possible complica- trict, but over the greater part of the territory tions with the de facto Government of Mexico. it is not probable that any work will be done It seems probable that, in spite of the large before April 10. The mild weather is carrying accumulation of reserves throughout the coun- off the snow and will rapidly put the ground in try, rates are now as low as they may reason- condition for spring operations. ably be expected to be and that the increased There is still a considerable amount of grain activity in all business will have its due effect from the 1915 crop held on farms. This will and cause a somewhat firmer market. not move freely until country roads are again in good condition. DISTRICT NO. 9—MINNEAPOLIS. Loans and discounts over the district show A generally favorable spring outlook is resome improvement, but bank rates are practiported at ail points in this district. Severe cally unchanged. winter has cleaned up country stocks of seasonable goods and opened the way for liberal DISTRICT NO. 10—KANSAS CITY, spring buying. Stocks generally are light. Business in the tenth district continues to Deliveries by distributing concerns during Jan- increase rapidly and previous high records are uary and February were considerably heavier constantly being broken in many lines. than a year ago, but largely represented goods During the month the prices of cattle, sheep, purchased last fall. and hogs have broken all previous records for a Collections have been very good. The de- similar period, the price upon the latter class mand for money has been easy at country of stock having increased 44 per cent within points and bank deposits large, as a result of three months. the amounts received by farmers for their grain There has been some complaint as to wheat crops. Open accounts of country merchan- damage in various localities through lack of disers have been reduced and the accounts of moisture and other causes, but no harm of a wholesalers with country customers have been serious nature is yet apparent. Business confreely liquidated. Trade generally is in much tinues to be somewhat hampered by lack of better shape than is usual at this season. transportation facilities. Industrial enterprises are very prosperous, One of the great industries of the tenth diswith orders ahead guaranteeing full production trict, the importance of which has not been Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

186 FEDERAL RESERVE BULLETIN. APRIL 1,1916. generally appreciated heretofore, is the pro- call for skilled and unskilled labor has existed duction of oil. Three of the ten recognized since the first of the year. oil fields in the United States are located within The statistics of the showing made by the this district, viz, the Mid-Continent, covering banks of the district in the call of March 7 Oklahoma and Kansas; the Wyoming, and the have not yet been completely compiled, but Colorado. the statements of the banks in the larger centers, The estimated oil production for the United such as Kansas City, Lincoln, Omaha, Denver, States in 1915 was approximately 291,400,000 St. Joseph, Wichita, and Oklahoma City ? barrels. The three fields in Federal Eeserve indicate that total deposits when compiled District No. 10 produced a total of 110,900,000 will exceed all records of the district. Clearing barrels. In February, the greatest well in house reports in all of these cities show a the history of this section was drilled in the large percentage of increase and indicate that famous Cushing district, producing 14,000 bar- the activity in. business is general and everyrels a day. It is conservatively estimated that thing indicates a continuation of recordthe Mid-Continent field alone will produce breaking activity for some time to come, since 200,000,000 barrels of petroleum in 1916, in addition to the abnormal deposits in banks, nearly twice the quantity of crude oil pro- the amount of grain, live stock, and other duced in 1915, in the same territory. The products still in the farmers7 hands is unupast month has been by far the busiest sually large, and the greater part of it will 30-day period of development for petroleum come to market during the spring and summer ever experienced in this district. Crude oil is months, provided crop prospects are satisfacselling for $1.55 a barrel and the demand is tory. such that practically none of the available supply is being stored. It should be remembered that the market price of oil does not fully DISTRICT NO. 11—DALLAS. control, as a premium is offered by independent Drought has interfered with spring plantbuyers* ing and is causing considerable apprehen- Ail departments of the mining industry sion. All parts of the district report that report increased business. New mills are rain is badly needed, and the ranges in some being rapidly erected and mining machinery localities are getting short. Despite the dry is in great demand. The high prices offered weather, however, the usual spring plowing has have brought about greatly increased produc- gone forward, and a large acreage in spring oats tion and in the employment of many laborers. has been planted. With a seasonal rainfall Mining towns report unusual increases in the crop should do well. Corn also has been population. Prices are high and generally pretty generally planted, although it is reported increasing. Lead ore has gone up to the that in some sections there will be a decreased highest price on record by $5 per ton. acreage on account of the drought. Colorado is sharing in the tremendous An important feature agriculturally is the expansion, of business that is coming to the production of peanuts. Last year in the censteel plants of the country. One plant at tral part of Texas there was quite a large Pueblo reports the operation of 15 furnaces acreage planted in peanuts, and this year, on as against 6 at this time last year. account of the winterkilling of wheat, much of Labor is generally employed at unusually the land vacated will be so planted. The good wages. Local labor troubles have been industry is rapidly growing. There is a good reported, but have, as a rule, been, of short market for the product among cotton oil mills. duration. There is a good demand for farm It is difficult to say just what percentage of workers at satisfactory wages, and a steady the cotton crop is still unmarketed. Some Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

APRIL 1, 1916. FEDEBAL BESERVE BULLETIN. 187 authorities consulted estimate that 15 to 20 With new fields being opened this development per cent of the staple is held throughout the is bringing outside capital to this section. district. As previously reported, while there Railroads report a 20 per cent increase in has been a general campaign to reduce the freight traffic over the same period a year ago. cotton acreage this year, a conservative esti- Congestion of freight in the North and East has mate, from present indications, would be that caused a general shortage of cars in this section, the acreage will be increased 15 per cent. and shippers are experiencing difficulty ip. get- The past 30 days has brought a large move- ting sufficient equipment for their needs. ment of vegetables from south Texas. De- Building operations and improvements show mand is very good, at fair prices. The pro- a substantial increase; every section of the disduction is about the average. trict reports much work underway. There The banks of the district for the most part is a good demand for all classes of labor at fair are in a very healthy condition, as disclosed wages, by the comptroller's call of March 7. This regardless of the fact that, in Texas partic_ DISTRICT; NO. ,12—SAN FRANCISCO. ularly, approximately $7,000,000 in tax funds Agricultural prospects are quite generally were transferred to the State treasurer at favorable throughout the seven States of this Austin. This transfer had to be made prior to district because of unusual precipitation dur- March 1, and this bank materially assisted by ing December, January and February. Dry making shipments of currency of approxi- farming, important in some sections, will mately $2,000,000 to Austin banks for credit especially benefit. Grain acreage will be reof their correspondents throughout the State. duced perhaps 25 per cent, as a dry fall season Rates are still eas}^ and banks are expe- followed by continuous wet weather interriencing only moderate demands for loans. fered with plowing. In the Northwest two The loans of this bank are about the same as a successive grain crops have compelled summer month ago, and no material change is noted fallowing of considerable areas. It is reported in the character of offerings. Live-stock paper, that near Spokane wheat farmers have unprein large amounts, continues to be freely offered. cedented accumulations of funds from two The banks have not yet commenced their sea- profitable years. sonal demands for the movement of spring Sugar producers, both in this district and crops, and with weather conditions materially in Hawaii, have prospered greatly. A large affecting the production it will be sometime increase is reported in acreage of sugar beets. yet before there will be any material change in Growers of citrus fruits have had a reasonthis respect. ably satisfactory year. There is a large annual Manufacturers throughout the district re- increase of producing acreage from new trees port an excellent business and anticipate a con- coming into bearing. tinuation of good spring orders. Jobbers like- Live-stock interests are especially prosperwise are enjoying a good trade, which is re- ous. Wool is being contracted for at from 27 flected materially in the volume of orders cents upward, and sheep are commanding reported by their traveling salesmen. exceptional prices. One report states that Lumber mills are running continuously, and there is good profit in wool at 15 cents, with are finding it difficult to supply the demand. lamb and mutton at 60 per cent of present Not since 1906 has this industry been in such a prices. Southern Idaho is said to have resatisfactory condition, and there is no indica- reived $1,000,000 for horses sold for war use. tion of any change in the near future. Mining is exceedingly active, with unex- Oil refineries are running on full time, and the ampled output and prices for both copper and product finds a ready market at excellent prices. other minerals. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

188 FEDERAL RESERVE BULLETIN. APRIL 1, 1916. Petroleum industry is at a high tide of by new organizations $740,500, and by conprosperity. In California February consump- versions of State banks $684,500, and detion exceeded production by about 1,000,000 creased by conversions into or consolidations barrels in spite of considerable new produc- with State banks $435,000, making a net tion. Many new wells are drilling under increase of $990,000. stimulus of advancing prices. February bank clearings in 17 principal Exports and imports are at record totals in cities of this district show a gain of 20 per spite of acute shortage of ships. Considerable cent over the preceding year, and building war material goes to Russia via Seattle. permits a gain of 25 per cent. The reopening of the Panama Canal, reported National banks of San Francisco on March for April 15, will be especially important for 7, 1916, show an increase of $36,000,000, this coast. approximately 23 per cent, in deposits, and Since the establishment of the Federal only $500,000 in loans, compared with the Reserve System, national bank capitalization, corresponding time last year. Credit condithen $129,585,000 in this district, has increased tions are easy throughout the district. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

APRIL 1,1916. FEDERAL BESEKVE BULLETIN. 189 DISTRIBUTION OF DISCOUNTS BY SIZES and about $1,800 for the last quarter in 1915. AND MATURITIES. For the more active southern banks these averages were: Richmond, $1,517; Atlanta, includ- The total discounts of commercial paper ing the New Orleans branch, $1,845; and granted by the Federal Reserve Banks during Dallas, $1,524. February, 1916, were $7,664,600, the smallest Over 32 per cent of the entire number, and monthly total since the opening of the banks. over 52 per cent of the total amount of, bills As compared with the February, 1915, total of discounted during the month were medium- $12,530,300, the February, 1916, figures show sized bills, i. e., in denominations ranging bea decrease in discount operations of almost 40 tween $1,000 and $5,000. Bills of the largest per cent. Over 79 per cent of the monthly dis- size (i. e., in denominations of over $10,000) counts are credited to the three southern banks, constituted about 11 per cent of the total dis- Kansas City being the only other bank which counts for the month. Small bills (in amounts reports discount operations of any volume for up to $250) were over 20 per cent of the entire the month. The aggregate of discounts since number, though only slightly over 2 per cent the beginning of the year, $18,779,500, is about of the total amount of the paper discounted 19 per cent below the corresponding total for during the month. The three southern banks 1915. handled 860 such bills out of a total of 1,099, Commodity paper, practically all secured by Richmond alone reporting 376 and Atlanta 249 cotton, was handled by five reserve banks and of the total number. aggregated $1,794,700, constituting 23.4 of all Less than 1 per cent of the paper discounted paper discounted during the month, compared during February was 10-day paper; 13.6 per with 16.8 per cent for January, 1916, and 16.3 cent, 30-day; 33.4 per cent, 60-day; and 39.1 per cent for the last four months in 1915 during per cent, 90-day paper. Over 1 million, or 13.1 which this class of paper was handled. Of the per cent of the total discounts, was agricultural total February discounts reported by the Rich- and live-stock paper maturing after 90 days at mond bank commodity paper was about 37 per the time of rediscount. Of this class of paper, cent, while of the month's discounts reported the Dallas bank handled more than one-half by the Atlanta bank and its New Orleans and Kansas City nearly 20 per cent. branch this class of paper constituted almost The number of member banks accommodated 39 per cent. during the month through the discount of paper Trade acceptances discounted during the was 451, the smallest monthly total since Janmonth by five banks totaled $246,100, as uary, 1915, and was only about 5.6 per cent of against $444,400 for January. Over 94 per the entire number of member banks shown at cent of this class of paper was handled by the the end of the month. Almost two-thirds of Richmond and Atlanta banks, including the the rediscounting banks are located within the latter's New Orleans branch. The total just three southern reserve districts. Member given is exclusive of $522,000 of trade accept- banks in Texas obtained about 1.4 million ances based upon foreign commerce transac- dollars of rediscounts, banks in South Carolina tions and purchased during the month by the 1.2 millions, and banks in North Carolina less three eastern seaboard and the San Francisco than 0.9 million. Member banks in Georgia, banks. Virginia, and Alabama obtained accommoda- The total number of bills discounted durijng tion of about 1.8 millions. The combined the month was 5,086, or almost 20 per cent less share of rediscounts secured by banks in the than the January total. The average size!of six States named is about 70 per cent of the the paper discounted during the month was total discounts reported to the Board for the about $1,507, compared with $1,753 in January month. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

190 FEDERAL RESERVE BULLETIN. APRIL 1,1916. Commercial paper, exclusive of bankers' acceptances, discounted by each of the Federal Reserve Banks during the month of February, 1916, 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 $ 0 5 0 0 . 0 O to v 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 1 r 0 $ , 5 0 , 0 0 0 0 . 0 $1 O 0 v ,0 e 0 r 0. Total. Per cent. Bank. Boston 1.6 6.4 10 7 n.i 32.0 24.0 30.8 52 114.5 1.0 1.5 New York 1.3 6.5 15 10.5 25 37.7 17.2 10.0 15.0 73 1.4 1.3 Philadelphia 37 6ll 14.9 24 19.0 20 32.9 29.0 5.4 155 109.2 3.0 1.4 Cleveland 5.6 15 11; 1 2 2.2 15.0 35 33.9 .7i .4 R A i t c la h n m ta o n ( d including New Or- 286 52.5 435172.9 428 331.5 400 680.9 924.4 514.7 290.6 1,9612,975.0 38.6 38.8 leans branch) 159 25.8 122 46.7 154 124.1 167 448.0 320.8 8671.,599.9 17.0 20.9 Chicago. 21 3.8 50 19.8 83 66.5 73 124.7 116.4 6.5! 272 338.7 5.4 4.4 St. Louis 12 1.7 24 9.3 31 24.5 42 71.0 60.6 33.9 138 201.5 2.7 2.6 Minneapolis 20 3.2 18 6. 21 15.4 27 39.8 26.5 5.1 96.6 1.9 1.3 Kansas City 56 10.4 94 34.0 66 45. . 72 109. 89.8 114.9 52.2 354 458.5 7.0 6.0 Dallas. 181 31.2 165 63.5 207 151.4 194 326.2 430.6 368.3 115. 978 ,491.1 19.2 19.5 San Francisco 1.8 20 24 13.6 31 42.6 40.0 29.2 12.9 105 147.4 2.1 1.9 Total. 304 24.2 795139.411,015 393.11,078 822.01,0601,777.5 5812,229.5 2031,440.8 50 838.1 7,664.6100.0100.0 PERCENTAGES OF AMOUNTS OF EACH CLASS TO TOTAL. Over Over Over Over Over Over Bank. $1 T 0 o 0. $ t 1 o 00 $2 to 50 $5 to 00 $1 t , o 000 $2 t , o 500 $5 t , o 000 $1 O 0 v ,0 e 0 r 0. Total. $250. • $500. $1,000. $2,500. $5,000. $10,000. Boston. .... 1.4 5.6 7.5 9.7 27.9 21.0 26.9 . 100.0 New York ... 0.1 1.3 6.6 10.7 38.3 17.5 10.2 15.3 100.0 Philadelphia 1 7 5.6 13.6 17.4 30 1 26 6 5 0 100 0 Cleveland 16.5 32.7 6.5 44.3 100.0 Richmond . . 2 1.8 5.8 11.1 22.9 31.1 i7.3 9.8 100.0 Atlanta (including New Orleans branch) 'A 1.6 2.9 7.8 18.7 28.0 20.6 20.0 100.0 Chicago .3 1.1 5.9 19.6 36.8 34.4 1.9 100.0 St. Louis ;3 .'8 4.6 12.2 35.2 30.1 16.8 100.0 Minneapolis 6.8 16 0 41.2 27.4 5 3 100 0 Kansas City .3 2.3 7.4 10.0 23.9 19.6 25.1 ii.4 100.0 Dallas .. .3 2.1 4.2 10.1 21.9 28.9 24.7 100.0 San Francisco •3 1.2 4.7 9.2 28.9 27.1 19.8 7..8 100.0 8.8 Total. ..... .:. • .3 1.8 5.1 10.7 23.2 29.1 18.8 11.0 100.0 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

APRIL 1,1916. FEDERAL RESERVE BULLETIN. 191 Commercial paper, exclusive of banhers' acceptances, discounted during February by each of the Federal Reserve Banks, distributed by States and maturities as of date of discount. [In thousands of dollars.] Number Districts and States. of member banks. District No. 1—Boston: Connecticut 73 Maine 70 Massachusetts 168 New Hampshire Rhode Island Vermont Total District No. 2—New York: New Jersey New York . Total District No. 3—Philadelphia: New Jersey Pennsylvania... Total District No. 4.—Cleveland: Ohio Ppnnsvlvania West Virginia . Total _.... District No. 5.—Richmond: District of Columbia Maryland North Carolina South Carolina Virginia West Virginia Total ...... ... District No. 6—Atlanta: Alabama Florida Georgia MississiDDi Tennessee Total District No. 7—Chicago: Illinois Indiana Iowa • ' Michigan ,.... Total District No. 8—St. Louis: Arkansas Illinois ••-••- Indiana TCfyntnokv MississiDDi Missouri TpTinpsspe Total District No. 9—Minneapolis: Montana ». - -. - "NFnrfh Dalrnta Smith T)a1cota Wisconsin - Total co oo oo Paper Paper Paper Number Paper maturing maturing maturing Paper Total of banks maturing after 10 after 30 after 60 maturing commer- accommo- within 10 days but days but days but after 90 cial paper dated. days. within 30 within 60 within 90 days. discounted. days. days. days. 2 9.8 11.9 0.9 22.6 1 73.8 5.0 78.8 2 1.1 3.2 4.0 8.3 1 2.8 2.0 4.8 433 6 2.8 86.7 20.1 4.9 114.5 132 1 6.4 3.4 4.1 13.9 481 6 6.2 47.2 31.0 84.4 613 7 12.6 50.6 35.1 98.3 24 1 2.0 2.0 70 2 11.2 36.9 7.8 10.0 65.9 534 7 .4 8.2 20.1 8.9 3.7 41.3 628 10 11.6 45.1 29.9 18.9 3.7 109.2 72 1 .6 3.5 4.1 375 4 .8 7.0 9.6 7.8 25.2 299 1 2.4 2.2 4.6 14 760 6 1.4 12.9 11.8 7.8 33.9 14 1 77.2 77.2 97 10 9.0 48.4 89.2 .5 147.1 79 25 27.1 129.8 321.7 381.9 .7 861.2 73 39 3.3 236.7 521.1 463.2 22.0 1,246.3 138 27 71.5 284.0 227.3 6.1 588.9 104 5 11.1 11.8 31.4 54.3 505 107 30.4 458.1 1,187.0 1,270.2 29.3 2,975.0 95 21 21.2 156.0 254.6 33.6 465.4 55 7 31.6 33.3 30.6 95.5 113 31 4.0 49. 7 372.7 325.2 31.4 783.0 5 1 55.0 25.0 80.0 18 1 7.1 14.1 21.2 95 18 2.9 29.2 41.8 77.8 3.1 154.8 381 79 6.9 193.8 642.9 688.2 68.1 1,599.9 317 7 9.6 23.5 32.2 26.2 91.5 196 6 2.4 9.2 11.2 6.5 29.3 348 20 11.0 33.2 72.1 48.5 53.1 217.9 77 51 989 33 11.0 45.2 104.8 .91.9 85.8 338.7 64 2 1.0 3.3 12.6 1.9 18.8 157 6 .6.5 6.4 11.5 9.3 33.7 61 2 3.4 22.5 25.9 69 3 16.5 22.2 38.7 17 81 7 1.4 32.8 29.4 12.0 75.6 20 2 4.2 2.6 2.0 8.8 469 22 16.5 84.1 77.7 23.2 201. 5 1 31 280 11 1.8 .3 13.9 37.0 53.0 68 4 .6 5.8 7.7 7.7 21.8 154 1 .1 .1 121 2 5.8 9.8 1.5 17.1 88 1 4.6 4.6 742 19 2.4 11.9 36.1 46.2 96.6 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

192 FEDERAL RESERVE BULLETIN. APRIL 1,1916. Commercial paper, exclusive of bankers' acceptances, discounted during February 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 Districts and States. o N f b m u a m n e k m b s e b . r e r , a N o c d c f u o a b m m t a e b n m d e k . o r s - w m P i d a t a t a h u p y i r n e s i . n r 1 g 0 w m d a a i a f t y t t h e u s i r r n b i 1 n u 3 0 g t 0 w m d a a i a f t y t t h e u s i r r n b i 3 n u 6 0 g t 0 w m d af a i a t t y e t h s u r i n r b 6 i 0 u n 9 g t 0 m a P d a ft a t a e u p y r r e s i 9 . r n 0 g d c c i i s o a T c m l o o p m u t a a n p e l t r e e - r d. days. days. days. District No. 10—Kansas City: Colorado 119 3 2.1 30.4 34.5 .5 67.5 Kansas 219 7 8.0 10.2 26.8 50.1 95.1 Missouri.. 53 3 .7 1.3 15.4 17.9 43.4 78.7 Nebraska 208 6 10.7 33.6 16.1 60.4 New Mexico 9 Oklahoma 304 18 14.3 36.1 26.7 79.7 156.8 Wyoming 33 Total 945 37 .7 25.7 102.8 139.5 189.8 458.5. District No. 11—Dallas: Arizona 6 Louisiana , 27 2 .4 13.3 4.8 18 5* New Mexico . . .. 28 4 1.3 18.2 15.1 18.7 53.$ Oklahoma 42 9 2.5 7.8 20.3 31.1 61.7 Texas 546 86 123.1 245.2 521.3 468.0 1,357.6* Total 649 101 127.3 284.5 561.5 517.8 1,491.1 District No. 12—San Francisco: Alaska 1 Arizona . 7 California 266 i7 .6 25.2 24.3 32.6 31.9 114.6 Idaho .. . . . 58 2 .4 3.6 1.4 5.4 Nevada 10 Oregon 86 4 1.9 23 4 25 S Utah 23 Washington 78 1 .3 .3 .4 1.1 2.1 Total 529 24 .6 25.5 26.9 60.0 34.4 147.4 RECAPITULATION. [In thousands of dollars.] Paper Paper Paper nu T m o b t e al r of Number of Paper maturing maturing maturing Paper Total • Districts and cities. m b e a m nk b s er ac b co an m k m s o- m wi a t t h u i r n i n 1 g 0 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 f t t u er r i 9 n 0 g c c i o al m p m a e p r e - r Per cent. reported. dated. days. within 30 within 60 within 90 days. discounted. days. days. days. No. 1—Boston 433 6 2.8 86.7 20.1 4.9 114.5 1.5 No 2—New York 613 7 12.6 50.6 35.1 98.3 1.3 No. 3—Philadelphia 628 10 11.6 45.1 29.9 18.9 3.7 109.2 1.4 jsfo. 4-—Cleveland 760 6 1.4 12.9 11.8 7.8 33.9 .4 No. 5—Richmond 505 107 30.4 458.1 1,187.0 1,270.2 29.3 2,975.0 38. S No. 6—Atlanta 381 79 6.9 193,8 642.9 688.2 68.1 1,599.9 20.9 No. 7—Chicago 989 33 11.0 45.2 104.8 91.9 85.8 338.7 4.4 No. 8—^5t. Louis 469 22 16 5 84.1 77.7 23.2 201.5 2.6 No 9—-Minneapolis 742 19 2.4 11.9 36.1 46.2 96.6 1.3 No. 10—Kansas City 945 37 .7 25.7 102.8 139.5 189.8 458.5 6.0 No 11—Dallas 649 101 127.3 284.5 561.5 517.8 1,491.1 19.5 No. 12—San Francisco 529 24 .6 25.5 26.9 60.0 34.4 147.4 1.9 Total for February 8,094 451 64.0 1,040.3 2,558.4 2,995.8 1,006.1 7,664.6 Per cent. 5.6 .8 13.6 33.4 39.1 13.1 100.0 100.0 Total for Jan.-Feb., 1916 327.3 2,895.7 5,917.6 7,117.4 2,521.5 18,779.5 Total for Jan -Feb 1915 7,066.8 9,048.7 5,631.0 1,496.6 23,243.1 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

APRIL 1, 1916. FEDERAL RESERVE BULLETIN. 193 Trade acceptances discounted by each Federal Reserve Bank fromSept. 2, date of first discount, to Dec. SI, 1915, and for the months of January and February, 1916. Total to Total Federal Reserve Bank. De 1 c 9 . 1 5. 31, Jan 19 u 16 a . ry, Feb 19 r 1 u 6 a . ry, F J e a b n r u u a a r r y y - . 1916. New York . $5, Cleveland $700 $700 Richmond 450, $137,300 135,800 273,100 Atlanta (including New Orleans branch). 1,007, 202,000 95,500 297,500 Chicago.... .- 8,200 8,200 St. Louis 167,800 32,600 3,500 36,100 Kansas City 87, 47,300 4/, 300 Dallas 160, 11,700 *i6,'666' 22,300 San Francisco 74, 5,300 5,300 Total. 1,958,800 444,400 » 246,100 690,500 1 Included in total of commercial paper shown above. Commodity paper discounted by each Federal Reserve Bank from Sept. 8, date of first discount, to Dec. 81, 1915, and for the months of January and February, 1916. Federal Reserve^Bank. T De o c t . al 3 t 1 o , January, February, Ja T n o u t a a r l y , - 1915. 1916. 1916. February, 1916. Richmond $2,881,400 $1,010,600 $1,092,200 $2,102,800 Atlanta (including New Orleans branch) 7,032,300 745,800 622,700 1,368,500 St Louis 99,800 Minneapolis . . .. . .. 25,300 1,300 9,100 10,400 Dallas ... 239,100 81,900 57,600 139,500 San Francisco 37,200 24,000 13,100 37,100 Total 10,315,100 1,863,600 11,794,700 3,658,300 1 Included in total of commercial paper shown above. Commodity paper * discounted by each Federal Reserve Bank during January and February, 1916, distributed by classes. Atlanta Class. Richmond. (inc N l e u w ding Mi o n l n is e . ap- Dallas. Fra S nc a i n sco. Total. Orleans). Cotton . . $2,090,317 $1,367,465 $132,578 $256 $3,590,616 Peanuts 12 400 12,400 Wheat $8,822 8,822 Maize . . 6,944 6,944 Flax 1,605 1,605 Hops . 12,848 12,848 Miscellaneous . / 1,040 24,003 25,043 Total 2,102,717 1,368,505 10,427 139,522 37,107 3,658,278 i Included in total of commercial paper shown above. Amounts of commercial paper, exclusive of bankers1 acceptances, held by each Federal Reserve Bank on Feb. 25, 1916. Paper Paper Paper Paper maturing maturing maturing Paper maturing after 10 after 30 after 60 maturing Federal Reserve Bank. within days but days but days but after 90 Total. Per cent. 10 days. within within within days. 30 days. 60 days. 90 days. Boston $68,000 $83,300 $26,500 $5,200 $183,000 0.8 New York 36,800 44,300 76,200 10,400 167,700 .7 Philadelphia 50,400 49,300 68,200 23,100 $7,900 198,900 .9 Cleveland 79,000 47,700 57,900 16,200 16,100 216,900 1.0 Richmond 1,349,100 762,300 2,501.500 948,500 78,100 6,639,500 29.1 Atlanta, including New Orleans branch 774,800 004,400 1,617,400 900,700 184,400 4,481,700 19.6 Chicago : 450,500 397,100 521,700 343,300 271,800 1,984,400 8.7 St. Louis 203,200 153,100 254,500 120,200 71,500 802,500 3.5 Minneapolis'. 149,200 72,100 229,400 271,300 192,700 914,700 4.0 Kansas City 257,000 463,100 599,200 384,700 365,500 2,069,500 9.1 Dallas 537,700 730,800 1,339,500 1,135,700 997,500 4,741,200 20.8 San Francisco 88,700 76,300 132,800 42,800 80,000 420,600 1.8 Total 4,044,400 4,883,800 7,424,800 4,202,100 2,265,500 22,820,600 Per cent 21.4 32.5 18.4 10.0 100.0 100.0 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

194 FEDERAL RESERVE BULLETIN. APKIL 1,1916. ACCEPTANCES. Acceptances held by Federal Reserve Banks on dates specified as per schedules on file—Total bankers' acceptances by classes [In thousands of dollars.] Nonmember banks. Nonmember banks. Date. M ba e n m k b s e . r c T o n m r ie u p s s . a t - b S a t n a k te s. P ba ri n v k a s t . e Total. Date. M ba e n m k b s e . r c T o n m r i u e p s s a t . - b S a t n a k te s. P ba ri n v k a s t . e Total. 1915. 1916. Feb. 22 93 Jan. 3 15,494 7,160 362 822 23,838 Apr. 5 3,653 110 11,593 Jan. 10 16,492 8,057 370 938 25,857 May3... 5,038 110 13,347 Jan. 17 16,908 7,655 425 1,010 25,998 June 7 5,242 192 9,960 Jan. 24 16,348 8,070 363 1,441 26,222 . July3 4,342 161 9,770 Jan. 31 15,834 8,174 356 1,510 25,874 Aug. 2 5,350 20 352 11,129 Feb.7 15,681 7,876 336 1,456 25,349 Sept. 6... •...-. 6,087 20 472 12,884 Feb. 14........ 17,581 7,985 347 1,851 27,764 Oct. 4 9,000 132 343 14,373 Feb. 21 17,661 8,194 392 1,841 28,088 Nov. 1 8,477 253 204 13,265 Feb. 28 17,436 8,755 408 1,841 28,440 Dec. 6.. 12,311 275 18,154 Mar. 6... 17,182 8,670 408 1,781 28,041 Mar. 13 20,323 10,032 470 1,631 32,456 Mar. 20 20,563 11,280 408 2,467 1 34,718 i Acceptances indorsed by member banks: State banks, $9,000; private banks, $1,073,000; total, $1,082,000. Amounts of acceptances field by the several Federal Reserve Banks at close of business on Fridays, Mar. 3 to Mar. T7,1916. [In thousands of dollars.] Acceptances maturing— 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. L S ou t. is. M ap in o n li e s - . C K s i a a t n s y - . D la a s l . - c F S i r s a a c n n o - . sy T s f o o te t r a m l . Within 10 days: Mar 3 1,063 1,768 403 179 38 306 122 84 80 215 4,258 Mar 10 876 2,130 271 179 110 479 145 69 101 157 4,517 Mar 17 328 2,811 455 140 10 350 80 54 42 106 4,376 From 11 to 30 days: Mar 3 1,300 4,392 714 224 176 8 550 186 172 123 227 8,072 Mar 10 1 134 3 748 884 208 66 7 472 232 206 92 225 7 274 Mar 17 1,469 3,042 650 167 66 7 325 300 183 111 218 6,538 From 31 to 60 days: Mar. 3 . 3,827 3,718 365 322 250 635 414 143 184 268 10,126 Mar 10 4,086 4,092 922 231 250 392 245 9,4 148 178 10,638 Mar 17 4,667 4,353 1,125 470 250 660 153 225 253 573 12,729 From 61 days to 3 months: Mar 3 2,644 3,702 387 308 65 445 39 159 135 443 8,327 Mar 10 3 234 3 392 1,629 389 165 790 144 148 165 ... .' ! 464 10,520 Mar 17 4,827 4,351 1,813 146 305 460 126 153 177 90 12,448 Total acceptances held: Mar. 3 8,834 13,580 1,869 1,033 176 361 1,936 761 558 522 1,153 30,783 Mar 10 9,330 13,362 3,706 1,007 176 422 2,133 766 517 506 1,024 32,949 p. Mar 17 11,291 14,557 4,043 923 76 562 1,795 659 615 583 987 36,091 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

APRIL 1,1916. FEDERAL RESERVE BULLETIN. 195 Amounts of acceptances (in the foreign and domestic trades) purchased by each Federal Reserve Bank during the calendar year 1915, and for the months of January and February, 1916, distributed by maturities. [In thousands of dollars.] Kan- San Acceptances maturing— 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. c C a h g i- o. L S ou t. is. M ap in o n li e s - . C s i a t s y. Dallas. F ci r s a c n o - . Total. Within 30 days: Calendar year 1915 497 1,246 695 101 7 156 103 45 69 61 2,980 January, 1916 48 587 64 20 9 6 734 February, 1916 909 277 50 41 1 50 125 1,453 Total 545 2,742 972 215 41 7 156 103 66 78 50 192 5,167 After 30 but within 60 days: Calendar year 1915 2,137 2,377 1,464 746 19 816 374 191 183 750 9,057 January, 1916 102 621 43 42 279 43 6 55 13 1,204 February, 1916 41 313 36 30 116 50 33 22 13 654 Total 2,280 3,311 1,543 818 19 1,211 467 230 260 776 10,915 After 60 days but within 3 months: 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 January, 1916 . 2,681 2,686 151 267 300 489 357 200 151 304 7,586 February, 1916 3,686 4,157 396 395 65 656 143 194 197 420 10,309 Total 17,838 29,054 5,953 2,778 250 411 5,955 1,824 1,613 1,884 3,143 70,703 Total acceptances bought: 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 January, 1916 . 2,831 3,894 194 373 300 768 400 226 215 323 9,524 February, 1916 3,727 5,379 709 475 41 65 772 193 228 219 50 558 12,416 Total. 20,663 35,107 8,468 3,811 291 437 7,322 2,394 1,909 2,222 50 4, 111 86,785 Distribution of bills bought in open market by all Federal Reserve Banks during the month of February, 1916, by classes of acceptors and sizes. To $5,000. O to v e 1 r 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 to v e $ r 5 $ 0 2 ,0 5 0 ,0 0 0 . 0 O to v e $ r 1 0 $ 0 5 ,0 0 0 ,0 0 0 . 0 Over $100,000. Total. Acceptances by classes. si £2 O jap a-g ! Member banks... 253,857 1,890,596 1,143,135 768,596 10 2,102,230 322 6,791,352 54.7 Trust companies. 367,002 418,132 1,290,039 337,465 10 692,810 1,224,145 270 4,329,593 34.9 State banks 57,500 9,271 67,500 21 134,271 1.1 Private banks 41,051 59,964 177,109 208,900 152,208 38 639,232 5.1 Total bankers' acceptances i 719,410 1,120,305 189 3,425,244 1,689,500 1,613,614 3,326,375 651 11,894,448 95.8 Trade acceptances2. 70,265 187,684 123,082 141,351 56 522,382 4.2 Total bills bought in open market 267 789,675 159 1,307,989 3,548,326 1,830,851 21 1,613,614 3,326,375 707 12,416,830 100.0 Per cent 6.4 10.5 28.6 14.7 13.0 26.8 100.000 Total for January, 1916. 546,959 1,720,758 4,113,726 1,857,477 1,284,593 9,523,513 Total for Jan.-Feb., 1916 461 1,336,634 3,028,747 7,662,052 3,688,328 2,898,207 15 3,326,* 375'1,402 21,940,343 1 Of the above total of bankers' acceptances $11,769,448 are based on imports or exports and $125,000 on domestic trade transactions. 2 Practically all drawn abroad on importers in the united States and indorsed by foreign bankers. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

196 FEDEKAL BESERVE BULLETIN. APRIL 1,1916. Total investment operations of each Federal Reserve Bank during the months of January and February, 1916 and 1915. [In thousands of dollars,] Bills b m ou a g rk ht e t i . n open Municipal warrants. United States bonds. me T n o t t a o l p i e n r v a e ti s o t n -. s. Discounts m b e a f m o n r b k e s r . e B a c r n s a e c ' n p e a k t s - c - . - a a T c n c r c a e e d p s e t . - Total. City. State. o A th l e l r. Total. 2 ce p n e t. r 3 c e p n e t. r 4 c e p n e t r . Total. 1916 1915 Boston: January 131.1 2,732 99 2,831 249.0 200.0 449.0 3,411.1 681.8 February... 114.5 3,724 3 3,727 546.5 546.5 4,388.0 799.6 New York: January.... 125.6 3,894 3,894 6,148.6 6,148.6 10,168.2 6,903.6 February... 98.3 5,036 343 5,379 4,964.8 4,964.8 10,442.1 4,748.1 Philadelphia: January 242.8 194 194 1,576.0 1,576.0 1,000.0 1,000.0 3,012.8 1,802.9 February... 109.2 658 51 709 628.6 '"%Q 630.6 500.0 500.0 1,948.8 915.9 Cleveland: January 127.9 373 373 356.8 10.5 7.3 374.6 195.0 330.0 525.0 1,400.5 1,004.0 February... 33.9 475 475 708.1 .5 708.6 258.0 561.0 819.0 2,036.5 906.5 Richmond: January 3,417.1 77.6 77.6 3,494.7 2,802.5 February... 2,975.0 41 41 5.0 5.0 1,320,0 1,320.0 4,341.0 3,695.7 Atlanta: January.... 1,944.0 250 50 300 25.0 25.0 2,269.0 2,677.5 February... 1,599.9 65 65 151.0 151.0 1,815.9 2,944.8 Chicago: January 973.5 768 ' 7(58 403.0 25.5 55.2 483.7 113.0 1,500.0 1,613.0 3,838.2 3,131.8 February... 338.7 772 772 1,306.3 1,306.3 220.0 268.0 488.0 2,905.0 2,078.5 St. Louis: January 583.7 400 400 121.1 121.1 799.0 799.0 1,903.8 613.9 February... 201.5 193 193 471.5 471.5 540.0 1,030.0 1,570.0 2,436.0 394.0 Minneapolis: January 189.0 226 226 293.4 293.4 50.0 95.0 145.00 853.4 527.6 February... 96.6 228 228 364.1 364.1 125.0 231.5 46.0 402.5 1,091.2 892.2 Kansas City: January 1,364.6 215 215 125.8 125,. 8 69.8 69.8 1,775.2 532.8 February... 458.5 219 219 289.1 289.1 4,164.25 100.0 4,264.25 5,230.85 479.3 Dallas: January 1,845.5 425:0 425.0 2,270.5 936.5 February... 1,491.1 50 50 1,541.1 1,729.3 San Francisco: January 170.1 323 323 156.5 156.5 2,025.0 2,025.0 2,674.6 1,835.4 February... 147.4 433 125 558 1,114.3 20.4 3.7 1,138.4 1,843,8 761.9 Total investments: January,... 11,114.9 9,375 149 9,524 9,507.8 236.0 62.5 9,806.3 4,393,80 403.0 1,830.0 6,626.8 37,072.0 23,450.3 February... 7,664,6 11,894 522 12,416 10,393.3 20.4 11.2 10,424.9 6,799.75 1,739.5 975.0 9,514.75 40,020.2520,345.8 Total for January-February 1916.......... 18,779.5 21,269 671 21,940 19,901.1 256.4 73.7 20,231.2 11,193.55 2,142.5 2,805.0 16,141.55 77,092.2543,796.1 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

197 APRIL 1,1916. FEDERAL KESERVE BULLETIN. FEDERAL RESERVE BANK STATEMENTS. Resources and liabilities of each of the Federal Reserve Banks and of the Federal Reserve System at close of business on Fridays, Mar. S to Mar. 24, 1916. BESOUKCES. [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 t o e t r a m l . Gold coin and certificates in vault: Mar. 3 12,905 159,536 11,452 4,723 5,607 36,303 5,223 3,372 4,676 4,046 6,115 261,822 Mar. 10 12,938 156,971 6,873 11,505 4,700 5,591 36,574 5,287 3,410 4,753 4,059 5,214 257,875 Mar. 17...... 12,280 155,099 7,163 11,471 4,726 5,640 34,478 5,157 3,421 4,759 4,072 5,614 253,880 Mar.24... 10,844 162,239 6,210 11,538 4,754 5,708 3.6,431 5,077 3,589 4,718 4,037 5,721 Gold settlement fund: Mar. 3. 3,389 9,738 10,695 10,037 10,886 6,132 4,577 987 4,238 3,765 9,092 1,354 74,890 Mar. 10 3,325 5,790 10,050 10,140 10,421 6,338 6,702 3,749 4,368 3,424 10,013 4,850 79,170 Mar. 17 4,841 7,771 7,324 10,166 11,013 5,611 5,674 3,834 4,368 3,666 10,325 4,377 78,970 Mar.24 3,443 10,587 6,440 9,975 12,012 5,177 6,519 2,647 4,598 3,878 10,036 4,368 79,680 Gold redemption fund: Mar.3 3 250 50 303 354 200 23 30 92 223 10 1,538 Mar. 10 3 250 50 280 325 200 5 30 88 213 10 1,494 Mar. 17 5 250 50 315 353 200 85 30 81 204 10 1,623 Mar.24 250 50 338 338 200 54 30 74 192 10 1,578 Legal-tender notes, silver, etc.: Mar.3 73 4,318 4,167 1,316 129 180 701 455 152 12,994 Mar. 10 41 10,570 4,084 1,250 119 163 1,446 809 470 153 913 20,036 Mar. 17 74 2,518 3,408 1,165 118 231 1,409 800 472 160 943 11,304 Mar.24 53 3,382 3,281 1,158 128 283 1,735 716 474 159 845 12,223 Total reserve: Mar.3 16,370 173,842 22,776 22,805 16,041 12,273 41,781 6,925 8,095 14,167 7,484 351,244 Mar. 10 16,307 173,581 21,057 22,935 15,520 12,417 44,922 9,850 8,278 ;,418 15,198 10,092 358,575 Mar. 17 17,200 165,638 17,945 22,842 16,172 11,835 41,761 9,876 8,291 1,666 15,544 10,007 345,777 Mar.24 14,345 176,458 15,981 22,708 17,232 11,506 44,885 8,494 15,110 10,108 354,347 Bills discounted—Members: Mar.3 140 256 211 170 6,316 4,260 1,791 728 853 1,967 4,542 481 21,715 Mar. 10 150 291 235 140 6,393 4,118 1,682 653 841 1,937 4,614 475 21,529 Mar. 17 122 295 245 323 6,390 4,036 1,606 683 791 1,943 4,700 474 21,608 Mar.24 307 279 323 6,262 3,953 1,598 650 776 2,010 4,536 514 21,306 Bills bought in open market: Mar.3 8,834 13,580 1,869 1,033 176 361 1,936 761 558 522 1,153 30,783 Mar.10. 9,330 13,362 3,706 1,007 176 422 2,133 766 517 506 1,024 32,949 Mar.17 11,291 14,557 4,043 924 76 562 1,795 659 615 583 987 36,092 Mar.24 12,236 14,725 5,141 1,025 573 2,165 843 675 687 1,108 39,244 United States bonds: Mar.3 3,490 3,726 1,370 158 6,357 3,339 1,902 7,405 1,295 3,035 33,063 Mar.10 3,490 3,796 1,676 165 6,422 3,339 1,983 7,954 1,295 3,035 34,141 Mar.17 2,670 4,206 4,091 1,676 1,220 6,603 3,339 2,114 7,978 1,295 3,035 39,213 Mar.24 3,152 4,206 4,224 1,676 1,370 6,677 3,339 2,214 7,978 1,295 3,035 40,152 Municipal warrants: Mar.3 3,642 12,738 2,684 3,881 81 2,590 1,226 1,204 1,495 30,539 Mar.10 2,977 13,223 3,304 3,965 91 3,604 1,256 1,449 1,054 1,832 32,755 Mar.17 2,923 13,433 3,340 3,996 91 3,684 1,267 1,419 1,029 1,852 33,034 Mar.24 2,833 13,378 3,344 3,965 91 3,630 1,241 1,356 1,832 32,669 Federal Reserve notes, Mar.3 755 15,132 157 640 1,917 1,009 5,388 25,567 Mar.10 791 14,501 118 466 1,846 760 1,019 5,337 24,838 Mar.17 768 14,489 66 431 1,865 795 930 5,264 24,608 Mar.24... 1,281 14,139 154 491 1,535 845 1,127 5,277 24,849 Due from other Federal Reserve Banks, net: Mar.3 1,790 1,973 446 1,601 400 8,358 3,390 4,067 1,369 821 3,961 120,576 Mar.10 3,850 1,270 944 2,067 216 4,008 1,458 3,871 1,570 158 610 112,647 Mar.17., 2,362 876 1,513 178 7,520 1,764 3,681 1,379 1,072 116,248 Mar.24 2,006 2,507 779 721 751 4,768 2,376 3,054 1,418 1,272 112,628 All other resources: Mar.3 383 136 564 1,035 373 2,474 130 284 176 5,969 Mar.10 48 377 124 342 869 581 1,827 135 305 276 243 5,213 Mar.17. 129 372 260 365 193 1,019 406 1,367 119 291 247 260 5,028 Mar.24 25 395 111 388 118 1,193 332 1,096 127 499 334 185 4,803 Total resources: Mar.3 32,597 215,931 33,265 25,671 18,487 65,103 19,412 17,818 21,230 21,073 23,173 519,456 Mar.10 34,439 215,335 33,304 33,595 26,009 18,207 65,198 19,909 18,093 21,744 21,541 22,648 522,647 Mar.17 33,419 211,454 32,467 33,848 26,111 18,850 65,240 19,750 17,960 21,869 21,786 22,951 521,608 Mar.24 33,810 222,554 31,723 33,903 26,166 19,346 65,590 18,884 18,020 22,420 21,635 23,331 529,998 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

198 FEDERAL EEBEEVE BULLETIN. APRIL!, 1916. Resources and liabilities of each of the Federal Reserve Banks and of the Federal Reserve System at close of business on Fridays, Mar. 3 to Mar. 24, 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 sa . s Dallas. c F S i r s a a c n n o - . sy T s f o o te t r a m l . Capital paid in: Mar 3 5,159 11,107 5,256 5,945 3,337 2,417 6.653 2,785 2,555 3,005 2,753 3,947 54,919 Mar 10 5,158 11,122 5,256 5,947 3,345 2,416 6,655 2,785 2,558 3,008 2,750 3,944 54,944 Mar 17 5,158 11,122 5,256 5,948 3,345 2,416 6,655 2,788 2,560 3,008 2,738 3,943 54,937 Mar 24 5,158 11,122 5,215 5,948 3,345 2,416 6,654 2,788 2,560 3,009 2,751 3,944 54,910 Government deposits: Mar 3 915 10,819 350 767 6,808 6,446 733 1,571 618 477 5,213 1,326 36,043 Mar 10 288 7,623 259 681 6,581 6,390 157 1,322 705 602 5,249 782 30,639 Mar 17 125 8,477 160 740 6,870 6,690 939 1,098 429 604 5,290 958 32,380 Mar 24 .... 1-12 9,632 233 794 7,267 7,088 902 1,376 380 804 5,419 1,200 35,088 Reserve deposits, net: Mar 3 .... 26,523 186,405 27,690 26,553 11,027 8,287 57,717 15,056 14,645 16,696 10,219 17,900 418,718 Mar 10 . 28,993 189,215 27,789 26,967 11,697 8,116 58,386 15,802 14,830 16,617 9,988 17,922- 426,322 Mar 17 26,638 189,695 27,051 27,160 11,489 8,464 57,646 15,864 14,971 16,358 9,873 18,050 423,259 Mar 24 28,664 194,416 26,275 27,161 11,365 8,754 58,029 14,720 15,080 16,446 9,719 18,187 428,816 Federal Reserve notes, net liability: Mar. 3.. 4,457 1,238 1,052 2,888 9,635 Mar 10 4 341 1 185 1,098 3,554 10,178 Mar 17 4,361 l'l78 1,218 3,446 10,203 Mar 24 4,140 983 1,108 3,746 9,977 Federal Reserve bank notes in circulation: Mar. 10 419 419 Mar 17 681 681 Mar 24 1,053 1,053 Due to other Federal Reserve banks, net: Mar.3........ 7,600 Mar. 10 7,375 Mar.17 1,408 2,160 439 Mar.24 7,384 All other liabilities: Mar.3. 42 99 141 Mar 10 45 100 145 Mar. 17 46 102 148 Mar.24 49 105 154 Total liabilities: Mar 3 32,597 215,931 33,296 33,265 25,671 18,487 65,103 19,412 17,818 21,230 21,073 23,173 519,456 Mar 10 34,439 215,335 33,304 33,595 26,009 18,207 65,198 19,909 18,093 21,744 21,541 22,648 522,647 Mar 17 33,419 211,454 32,467 33,848 26, 111 18,850 65,240 19,750 17,960 21,869 21,786 22,951 521,608 Mar 24 . 33,810 222,554 31,723 33,903 26,166 19,346 65,590 18,884 18,020 22,420 21,635 23,331 529,998 i Overdraft. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

APRIL 1,1916. FEDERAL RESERVE BULLETIN. 199 Circulation of Federal Reserve notes at close of business on Fridays, Mar. 3 to Mar. M, 1916. [In thousands of dollars.] San Boston. Y N o e r w k. Ph p i h la ia d . el- C la le n v d e . - m R o ic n h d - . la A nt 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. c F i r s a c n o - . T sy o s ta te l m fo . r Federal Reserve notes issued to the bank: Mar.3 9,380 75,897 7,672 10,286 12,395 15,461 4,191 7,714 13,200 10,190 13,847 11,070 191,303 Mar. 10.. 9,364 75,707 7,483 10,792 12,223 15,402 4,186 7,702 13,200 10,167 14,540 10,912 191,678 Mar. 17 9,696 75,471 7,463 10,755 12,142 15,053 4,179 7,681 13,200 10,192 14,427 10,906 191,165 Mar.24 10,472 75,238 7,322 10,725 11,907 15,020 3,824 7,666 13,072 10,109 14,700 10,848 190,903 Federal Reserve notes in hands of bank: Mar.3 755 15,132 157 640 613 1,057 1,917 569 1,009 153 111 5,388 27,501 Mar. 10... . 791 14,501 118 466 629 1,110 1,846 760 1,019 107 180 5,337 26,864 Mar. 17 768 14,489 66 431 609 837 1,865 795 930 12 232 5,264 26,298 Mar.24....^ . . 1,281 14,139 154 491 830 1,032 1,535 845 1,127 122 236 5,277 27,069 Federal Reserve notes in circulation: Mar.3 8,625 60,765 7,515 9,646 11,782 14,404 2,274 7,145 12,191 10,037 13,736 5,682 163,802 Mar. 10 8,573 61,206 7,365 10,326 11,594 14,292 2,340 6,942 12,181 10,060 14,360 5,575 164,814 Mar. 17..... 8,928 60,982 7,397 10,324 11,533 14,216 2,314 6,886 12,270 10,180 14,195 5,642 164,867 Mar. 24 9,191 61,099 7,168 10,234 11,077 13,988 2,289 6,821 11,945 9,987 14,464 5,571 163,834 Gold and lawful money deposited with or to the credit of the Federal Reserve Agent: Mar.3 9,380 75,897 7,672 10,286 7,325 13,166 4,191 7,714 13,200 8,985 10,848 11,070 179,734 Mar. 10 9,364 75,707 7,483 10,792 7,253 13,107 4,186 7,702 13,200 8,962 10,806 10,912 179,474 Mar. 17 9,696 75,471 7,463 10,755 7,172 •13,038 4,179 7,681 13,200 8,962 10,749 10,906 179,272 Mar. 24 10,472 75,238 7,322 10,725 6,937 13,005 3,824 7,666 13,072 8,879 10,718 10,848 178,706 Carried to net assets: Mar.3 755 15,132 157 640 1,917 569 1,009 5,388 25,567 Mar. 10 791 14,501 118 466 1,846 760 1,019 5,337 24,838 Mar. 17 768 14,489 66 431 1,865 795 930 5,264 24,608 Carr M ied a r t . o 2 4 net liabilities: 1,281 14,139 154 491 1,535 845 1,127 5,277 24,849 Mar.3 4,457 1,238 1,052 2,888 9,635 Mar. 10 4 341 1 185 1,098 3,554 10,178 Mar. 17S ... 4,361 1,178 1,218 3,446 10,203 Mar.24 4,140 983 1,108 3,746 9,977 Statement of Federal Reserve Agents1 accounts at close of business on Fridays, Mar. 3 to Mar. 24, 1916. [In thousands of dollars.] 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 - . 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 te t r a m l . Federal Reserve notes: Received from the Comptroller— Mar.3 19,380 108,240 15,480 13,000 17,000 20,400 9,600 19,000 13,000 19,580 11,360 275,420 Mar. 10 19,380 109,240 15,480 13,000 17,000 20,400 9,380 9,600 19,000 13,000 20,380 11,360 277,220 Mar. 17 19,380 109,240 15,480 13,360 17,000 20,400 9,380 9,600 19,000 13,000 20,380 11,360 277,580 Mar.24 19,380 109,240 15,480 13,360 17,000 20,400 9,380 9,600 19,000 13,000 20,380 11,360 277,580 Returned to the Comptroller— Mar.3 1,280 20,343 1,715 1,354 1,805 1,138 308 124 312 871 290 29,540 Mar. 10 1,296 20,533 1,904 848 1,977 1,197 313 136 335 912 448 29,899 Mar. 17 1,464 1,924 885 2,058 1,266 320 157 970 454 30,602 Mar.24 1,488 21,002 2,065 935 2,293 1,299 675 172 128 418 1,021 512 32,008 Chargeable to the Federal Reserve Agent— Mar.3 18,100 87,897 13,765 11,646 15,195 19,262 9,072 9,476 19,000 12,688 18,709 11,070 245,880 Mar. 10... 18,084 88,707 13,576 12,152 15,023 19,203 9,067 9,464 19,000 12,665 19,468 10,912 247,321 Mar. 17 17,916 88,471 13,556 12,475 14,942 19,134 9,060 9,443 19,000 12,665 19,410 10,906 246,978 Mar.24 17,892 88,238 13,415 12,425 14,707 8,705 9,428 18,872 12,582 19,359 10,848 245,572 In hands of Federal Reserve Agent— Mar.3 8,720 12,000 6,093 1,360 2,800 3,801 4,881 1,762 5,800 2,498 4,862 54,577 Mar. 10 8,720 13,000 6,093 1,360 2,800 3,801 4,881 1,762 5,800 2,498 4,928 55,643 Mar. 17 8,220 13,000 6,093 1,720 2,800 4,081 4,881 1,762 5,800 2,473 4,983 55,813 Mar.24 7,420 13,000 6,093 1,700 2,800 4,081 4,881 1,762 5,800 2,473 4,659 54,669 Issued to Federal Reserve Bank, net— Mar,3 9,380 75,897 7,672 10,286 12,395 15,461 4,191 7,714 13,200 10,190 13,847 11,070 191,303 Mar/10 9,364 75,707 7,483 10,792 12,223 15,402 4,186 7,702 13,200 10,167 14,540 10,912 191,678 Mar. 17 9,696 75,471 7,463 10,755 12,142 15,053 4,179 7,681 13,200 10,192 14,427 10,906 191,165 Mar.24. 10,472 75,238 7,322 10,725 11,907 15,020 3,824 7,666 13,072 10,109 14,700 10,848 190,903 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

200 FEDERAL RESERVE BULLETIN. APRIL 1,1916. Statement of Federal Reserve Agents' accounts at close of business on Fridays, Mar. 3 to Mar. 24, 1916—Continued. [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 te t r a m l . Amounts held by Federal Reserve Agent: In reduction of liability on outstanding notes- Gold coin and certificates on hand- Mar^........ 8,715 71,398 3,530 9,760 2,850 10,200 4,300 9,540 120,293 Mar. 10.. 8,714 71,398 3,360 9,760 2,850 10,200 4,300 9,540 120,122 Mar. 17....... 9,065 71,398 3,360 9,760 2,850 10,200 4,300 9,540 120,473 Mar. 24 9,864 71,398 3,360 9,760 2,850 10,050 4,300 9,540 121,122 Lawful money on hand — Mar. 3 Mar. 10 . Mar. 17 Mar 24 Credit balances in gold redemption fund— Mar. 3 665 4,499 542 526 475 716 431 374 650 585 118 290 9,871 Mar. 10 650 4,309 523 1,032 453 657 426 412 650 562 646 292 10,612 Mar. 17 631 4,073 503 995 472 1,088 419 391 650 562 669 286 10,739 Mar. 24....... 608 3,840 482 965 407 1,055 414 376 672 479 638 278 10,214 Credit balances with Federal Reserve Board- Mar 3 3,600 6,850 12,450 3,760 4,490 2,350 4,100 1,190 10,780 49,570 Mar. 10 ... 3,600 6,800 12,450 3,760 4,440 2,350 4,100 620 10,620 48,740 Mar. 17 3,600 6,700 11,950 .3,760 4,440 2,350 4,100 540 10,620 48,060 Mar. 24 3 480 6,530 11,950 3,410 4,440 2,350 4,100 540 10,570 47,370 As security for outstanding notes— Commercial paper- Mar 3 5,070 2,295 1,205 2,999 11,569 Mar. 10 . 4,970 2 295 1,205 3,734 12,204 Mar. 17 4,970 2,015 1,230 6,678 11,893 Mar. 24 4,970 2,015 1,230 3,982 12,197 Total- Mar. 3 9,380 75,897 7,672 10,286 12,395 15,461 4,191 7,714 13,200 10,190 13,847 11,070 191,303 Mar. 10 9,364 75,707 7,483 10,792 12,223 15,402 4,186 7,702 13,200 10,167 14,540 10,912 191,678 M Ma a r r . . 2 1 4 7 1 9 0 , , 6 4 9 7 6 2 7 7 5 5 , , 2 4 3 7 8 1 7 7 , , 3 4 2 6 2 3 1 1 0 0 , , 7 7 2 5 5 5 1 1 1 2 , , 9 1 0 4 7 2 15,053 3 4 , , 8 1 2 7 4 9 7 7 , , 6 6 6 8 6 1 1 1 3 3 , , 0 2 7 0 2 0 1 1 0 0 , , 1 1 0 9 9 2 1 1 4 4 , , 7 4 0 2 0 7 1 1 0 0 , , 8 9 4 0 8 6 1 1 9 9 0 1 , , 9 1 0 6 3 5 Memorandum: 15,020 Total amount of commercial paper delivered to the Federal Reserve Agent- Mar 3 5,339 2,297 1,217 4,186 13,039 Mar. 10 5,315 2,295 1,208 4,209 13,027 Mar. 17 5,499 2,015 1,231 4,278 13,023 Mar. 24 5,015 2,015 1,235 4,108 12,373 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

APRIL 1,1916. FEDERAL RESERVE BULLETIN-. 2G1 GOLD IMPORTS AND EXPORTS. Imports of gold, by customs districts, Jan. 1 to Mar. 17, 1916. [In thousands of dollars.] Week ending Feb. 25. Ore and base bullion United States mint or assay office bars Bullion refined. . United States coin Foreign coin Total Week ending Mar. 8. Ore and base bullion United States mint or assay office bars Bullion refined United States coin Foreign coin Total Week ending Mar. 10. Ore and base bullion United States mint or assay office bars Bullion, refined United States coin Foreign coin Total.. Week ending Mar. 17. Ore and base bullion United States mint or assay office bars Bullion, refined. . . . . . . . .. United States coin Foreign coin Total Jan. 1 to Mar. 17, 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 1 .kroY weN 58 222 88 368 23 181 3 316 523 41 421 49 511 12 520 4 118 654 191 3,841 8 17,573 21,613 .adirolF 1 1 33 33 .snaelrO weN 9 9 9 9 73 5 9 87 .anozirA 6 5 11 15 15 6 7 13 24 25 49 112 45 157 .osaP lE 20 20 13 13 2 2 51 26 77 .oderaL 4 4 3 3 22 22 6 6 49 49 .ocsicnarF naS 14 99 113 5 5 3 93 2,433 2,529 28 72 100 177 1,491 2,433 4,101 .notgnihsaW 75 75 34 34 72 20 92 68 91 21 180 704 286 41 1,031 .olaffuB 162 13 175 37 53 18 108 65 37 102 165 165 139 776 281 1,196 .atokaD 16 16 1 1 8 8 4 4 62 62 .nagihciM 97 97 27 27 6 6 66 66 389 389 .ecnerwaL .tS 1 1 7 11 18 .latoT 290 162 339 1 97 889 140 53 204 3 316 716 236 37 521 20 2,482 3,296 219 165 708 26 118 1,236 1,948 776 5,970 94 20,026 28,814 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

202 FEDERAL BESEEVE BULLETIN. 1,1916. Exports of gold, by customs districts, Jan. 1 to Mar. 17, 1916. [In thousands oi dollars.] Week ending Feb. 25. United States mint or assay office bars Bullion, refined: Foreign .. . . . United States coin Foreign coin Total Week ending Mar. 5. Bullion refined domestic United States coin Forsisrn coin Total . ... Week ending Mar. 10. Ore and base bullion United States mint or assay office bars Bullion, refined, domestic. . United States coin Foreign coin Total .. .. . Week ending Mar. 17. Ore and base bullion United States mint or assay office bars Bullion,refined, domestic . .. United States coin Foreign coin ........ Total Jan. 1 to Mar. 17. Ore and base bullion United States mint or assay office bars Bullion, refined: Domestic Foreign United States coin Foreign coin Total .kroY weN 1,438 1,034 1,436 3 908 1,419 1,165 1,717. 4,301 55 1,000 1,055 743 107 510 1,360 758 2,164 1,438 7,232 9,476 21,068 .ociR otroP 15 15 .aksalA 4 4 4 4 .iiawaH 11 11 29 29 .ocsicnarF naS 100 100 2,612 2,612 950 352 1,302 400 573 973 1,451 701 3,609 5,761 .notgnihsaW 25 25 56 1 3 60 .olaffuB 3 3 6 10 3 13 28 7 5 40 5 16 21 59 60 22 9 150 .atokaD 1 2 3 .nagihciM • 3 3 7 7 7 ""z 10 .ecnerwaL .tS 1 61 62 4 4 10 10 505 5 1,010 1,381 2,901 .tnomreV 1 1 1 1 5 750 755 .latoT 104 4 1,438 1,034 1,497 4,077 29 1,429 3,780 1,724 6,962 28 950 8 423 1,000 2,409 5 416 750 690 510 2,371 119 2,774 2,906 1,438 12,659 10,860 30,756 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

APRIL 1,1916. FEDERAL EESEEVE BULLETIN. 203 EARNINGS ON INVESTMENTS OF FEDERAL RESERVE BANKS. Average amounts of earning assets held by each Federal Reserve Bank during February, 1916, earnings from each class of earning assets, and annual rates of earnings on the basis of February, 1916, returns. Average balances for the month of the several classes of earning assets. B m c i o l e l u m s n r b t e e e d d r i s , s . - Bi m l i l n s a o r b k p o e e u t n g . ht M wa u r n r i a c n ip ts a . l U b S o n t n a it t d e e s d s . Total. Boston $194,000 $8,515,000 $3,412,000 $13,107,000 New York.... 182,000 12,152,000 9,482,000 21,816,000 Philadelphia.. 217,000 1,674,000 2,962,000 287,000 8,140,000 Cleveland 272,000 976,000 2,955,000 390,000 7,593,000 Richmond 6,751,000 164,000 81,000 552,000 7,548,000 Atlanta , 4,949,000 343,000 300 40,000 5,332,300 Chicago 2,217,000 1,848,000 2,233,000 204,000 12,502,000 St. Louis 880,000 783,000 698,000 111,000 5,472,000 Minneapolis 986,000 508,000 1,169,000 688,000 4,351,000 Kansas City 2,406,000 483,000 435,000 988,000 6,312,000 Dallas 4,658,000 26,000 295,000 5,979,000 San Francisco.. 422,000 779,000 1,231,000 035,000 5,467,000 Total : 24,134,000 28,251,000 24,658,300 26,576,000 103,619,300 Earnings from— Calculated annual rate of earnings from— B m c il o e l m u s n r b e t e e d r d i s s , . - o b p o e u B k n g e i l h t m l . t s a in r- M wa u r n r i a c n ip ts a . l U bo n n it d e s d . Total. m c B o e i m u d ll n i s b s t - e e re r d s - , . m i b n o B a u r o i k l g p l e s h e t n t . p M a ra l u n n w t i s c a . i r - - U b S o n t n a it t d e e s d s . ve A o t s i p t l o l m e n r i e s n a . n - - t Per cent. Per cent. Per cent. Per cent. Per cent. Boston $594.20 $13,864.56 $6,005.07 $1,593.26 $22,057. 3.87 2.05 2.19 2.04 2.12 New York.... 580.20 19,776.61 17,138.61 37,495. 4.02 2.05 2.28 2.17 Philadelphia.. 706.67 2,742.72 5,394.88 14,113. 4.10 2.07 2.30 2.02 2.19 Cleveland 1,012.18 1,494.01 6,868.95 7,474.13 16,849. 4.70 1.93 2.93 2.78 2.80 Richmond 20,451.74 396.87 199.24 816.57 21,864. 3.82 3.05 3.11 1.87 3.66 Atlanta 13,855.52 659.57 1.10 63.34 14,579. 3.53 2.43 4.47 2.00 3.45 Chicago 8,594.63 2,997.50 4,427.89 12,320.34 28,340. 4.89 2.05 2.50 2.51 2.86 St. Louis 3,036.32 1,247.19 1,207.15 4,969.24 10,459. 4.35 2.01 2.18 2.02 2.41 Minneapolis.. 3,791.66 828.96 2,719.73 3,308.79 10,649. 4.85 2.06 2.94 2.47 3.09 Kansas City.. 9,024.84 814.97 811.70 5,242.83 15,894. 4.73 2.13 2.35 2.21 3.18 Dallas 16,019.40 62.50 2,908.94 18,990. 4.34 3.03 2.83 4.01 San Francisco 1,716.34 1,386.73 1,997.92 5,058.33 10,159. 5.14 2.25 2.05 2.10 2.34 Total. r 79,383.70 46,272.19 46,772.24 49,024.76 221,452.8 4.15 2.07 2.39 2.33 2.70 NOTE.—With the view of insuring uniform treatment of the items reported by all banks, the average yearly rates were obtained through multiplying all the calculated average monthly rates by the fraction 366/29. It is thought that on the whole the results thus obtained provide a satisfactory basis for comparison between the individual banks. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

204 FEDERAL RESERVE BULLETIN. APRIL 1,1916. DISCOUNT RATES. Discount rates of each Federal Reserve Bank in effect Mar. 23, 1916. Trade acceptances. M o a f n a 1 d tu 0 l r e d it s a i s e y . s s t M i o o n f c a 3 o l t 0 u u v s r d e i i a r t v i y 1 e e s 0 s . , t M i o o n f c a 6 o l t 0 u u v r s d e i i r a t v i y 3 e e s 0 . s , t M i o o n f c a 9 o l t 0 u u v s r d e i i r a t v i y 6 e e s 0 . s , p l t i a 9 A u v p 0 r e g e a - d r r l s i a c t a o o y u n v c s l d e - k . r T in o c 6 lu 0 s d i a v y e. s, O in 9 v c 0 e l u d r s a 6 i y 0 v s e t , . o m p C a o o p d m e it r - y . m i b n P o a a u o r p k p g e e e h r n t t . Boston... New York Philadelphia 13 Cleveland ..... 3 Richmond 3* Atlanta ... Atlanta (New Orleans branch). 3 3-1-4 Chicago St. Louis.. Minneapolis Kansas City 31 j Dallas '... 3-5 San Francisco 1 Rate for commodity paper maturing within 90 days. 2 Rate for bills of exchange in open market operations. 3 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. 6 Rate for commodity paper maturing within 30 days, 3§ per cent; over 30 to 60 days, 4 per cent; over 60 to 90 days, % per cent; over 90 days, 5 per cent. • Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

INDEX. Page. Acceptances 194,195 Gold settlement fund 165-167 Address of Hon. W. P. G. Harding, before Birming- Audit of 165 ham Chamber of Commerce 160-164 Governors of Federal Reserve Banks, meeting of.. 152 Audit of gold settlement fund 165 Informal rulings of the Board: Business conditions ... 174-188 Stock values paid to withdrawing banks 168 Commercial paper discounted 189-192 Trade acceptances, classification of 168 . Commodity paper discounted 193 Holding political office 168 Death of Felix Martinez, class C director of Dallas Savings accounts pass books 168 bank 152 Intradistrict clearing system, additions to and Discount rates in effect , 204 withdrawals from 169 Distribution of discounts 189-193 Law department 170-173 Dividends on Federal Reserve Bank stock exempt Liquidating member banks 170 from income tax 153 Purchase of warrants 170 Earnings and investments of Federal Reserve Loans on farm land 171 Banks : 203 Stamp tax on certificate of stock, decision of Federal Reserve Agent at Richmond, appointment Attorney General 172 of 153 Leave of absence granted H. P. Willis. . 152 Federal Reserve Agents' accounts, statement of... 199 Press statements.. 169 Federal Reserve Bank statements 197-200 Resources and liabilities of Federal Reserve Banks.. Federal Reserve Districts, changes in 153-155 Trade acceptances discounted 193 Federal Reserve notes, circulation of 199 United States bonds, purchase of 156-159 Fiduciary powers granted 169 Exchange of twos for threes 153 Gold imports and exports 201, 202 Work of the Board 151 O Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis