Federal Reserve Bulletin, 1916-05

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

FEDERAL RESERVE BOARD. EX OFFICIO MEMBERS. CHARLES S. HAMLIN, Governor. FREDERIC A. DELANO, Vice Governor. WILLIAM G. MCADOO, PAUL M. WARBURG. Secretary of the Treasury, W. P. G. HARDING. Chairman. ADOLPH 0. MILLER. JOHN SKELTON WILLIAMS, Comptroller of the Currency. H. PARKER WILLIS, Secretary. (On leave of absence.) SHERMAN ALLEN, Assistant Secretary and Fiscal Agent. M. 0. ELLIOTT, Counsel. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

SUBSCRIPTION PRICE OF BULLETIN. The Federal Reserve Bulletin is distributed without charge to member banks of the system and to the officers and directors of Federal Reserve Banks. In sending the Bulletin to others the Board feels that a subscription should be required. It has accordingly fixed a subscription price of $2 per annum. Single copies will be sold at 20 cents. Foreign postage should be added when it will be required. Remittances should be made to the Federal Reserve Board. Member banks desiring to have the Bulletin supplied to their directors may have it sent to not less than ten names at a subscription price of $1 per year. HI Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

TABLE OF CONTENTS, Work of the board ....... .... 205 Meeting of governors 206 Opinion of Attorney General rechanging location of Federal Reserve Banks 207 Acceptances not subject to stamp tax ... 211 r Federal Reserve note issues ..... , «.• .• 212 Cost of bank examinations.. .• : "213 Acceptances to 100 per cent ....... .... i...... . 215 Withdrawal of bonds securing circulation , , 215 Commercial failures in 1916 ...., 216 Discount rates in effect .. 216 Earnings and expenses of Federal Reserve Banks * 217 Gold settlement fund . 220 Individual and bank deposits of national banks . .>,-.. 222 Informal rulings of the Federal Reserve Board , ^ 224 Fiduciary powers granted 225 Additions to and withdrawals from the intradistrict clearing system. 225 Law department 226 Business conditions throughout the 12 Federal Reserve districts 228 Distribution of discounts ... . 244 Acceptances •'. 249 Federal reserve bank statements ..'. 252 Gold imports and exports ' 256 Interdistrict movement of Federal Reserve notes 258 IV Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FEDERAL RESERVE BULLETIN VOL. 2 MAY 1, 1916 No. 5 WORK OF THE BOARD. This bill has been reported favorably to the House of Representatives from the Committee During the month of April the Federal Reon Banking and Currency with this amendserve Board has been occupied largely with ment suggested by the Board: matters of current administration. Two topics, 1 'Consent of the Federal Reserve Board may however, of general public interest have been be procured before the person applying theregiven much time and thought: for has been elected as a class A director of a (1) Statements to committees of Congress Federal Reserve Bank or as a director of any in connection with proposed amendments to member bank.77 the Federal Reserve Act pending in Congress, Slight increases in rates have, with the apboth those suggested by the Board and those proval of the Federal Reserve Board, been coming from other sources. made by two Federal Reserve Banks during (2) Work in connection with a proposed April. On April 12 the Federal Reserve Bank country-wide clearing and collection plan. of Kansas City increased its rates for commer- The Board has come to a substantial agree- cial paper by one-half of 1 per cent, fixing the ment--as to the principles of a clearing and col- rate for 10 days at 4 per cent and that from 10 lection plan, which shall include not only the to 90 days at 4J per cent. The rate for comhandling of checks drawn against member modity paper at the Federal Reserve Bank of banks, but also those drawn on nonmember Richmond was on April 22 increased from 3 per banks when presented by member banks. cent to 3J per cent, and the rate of 3| per'cent As there is an immense amount of detail work for acceptances, which had before covered a to be done in connection with this matter, it is period of 60 days, made to cover this class of expected that the following month will be de- paper maturing in 90 days. voted to the working out of these details. To F. O. Watts, president of the Third National better accomplish this, a committee of the Bank of St. Louis, has been elected a member Board will work in conjunction with a comof the Federal Advisory Council for the Federal mittee of governors and transit managers of the Reserve Bank of St. Louis. Filling the vacancy Federal Reserve Banks. caused by the death of Felix Martinex, of El The Kern bill amending the Clayton Act was Paso, Tex., tfie Federal Reserve Board on April passed by the Senate in the following lan- 17 elected H. O: Wooten, of Abilene, Tex., a guage: class C director of the Federal Reserve Bank of 11 And provided • further, That nothing in thisDallas. Mr. Wooten's term will expire on Act shall prohibit any officer, director, or em- December 31, 1916. He is president of the ployee of any member bank, or class A director H. O. Wooten Grocery Co. at Abilene. of a Federal Reserve Bank who shall first pro- The Federal Reserve Bank of Richmond on cure the consent of the Federal Reserve Board, which Board is hereby authorized, at its discre- April 1 made payment of 1 per cent dividend tion, to grant, withhold, or revoke such con- for the period ending December 31, 1915, sent, from being an officer, director, or em- amounting to $30,387.65. This is in addition ployee of not more than two other banks, to the 5 per cent dividend declared and paid at banking associations, or trust companies, the end of the calendar year. whether organized under the laws of the United States or any State, if such other bank, bank- Taking up a request from one of the banks ing association, or trust company is not in sub- in the panhandle district pf Texas to be transstantial competition with such member bank." ferred from the Federal Reserve Bank of Dallas 205 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

206 FEDEEAL RESERVE BULLETIN. MAY 1,1916. to the Federal Reserve Bank of Kansas City, settlement fund held by the Federal Reserve the Board, after making a canvass of the banks Board for the Federal Reserve Banks and located in that section, voted on April 10 that Federal Reserve Agents, the receipt from colno change be made in the district lines at this lectors of customs and internal revenue of point and that this decision be communicated checks carrying exchange charges, the method to the banks interested. of calculating dividends for Federal Reserve The transfers of stock, made necessary by Banks, the conversion and disposition of the separation of banks located in Fairfield United States bonds and notes, "no protest" County, Conn., from the Federal Reserve Bank items, amendments to the Federal Reserve Act, of Boston and their being attached to the Fed- the replenishing of 5 per cent redemption funds eral Reserve Bank of New York, and certain for member banks and collection and clearance. banks in Louisiana being separated from the The chief attention of the Governors was Federal Reserve Bank of Dallas and attached devoted to the discussion of a plan for countryto the New Orleans Branch of the Federal Re- wide collection and clearance of checks. Freserve Bank of Atlanta, have been in due course quent conferences have been held with a subcompleted. committee of the Federal Reserve Board on. Believing that the directors of Federal Re- this subject. serve Banks should be given every inducement At the time the meeting adjourned the and facility for making themselves familiar fundamental principles and general features of with the details of the conduct and condition a collection and clearance plan had been deof their banks, the Board has suggested that termined. The further development of the each director be requested to read and initial machinery to make effective the plan was left the semiannual report of examination of his to a subcommittee which was authorized to re- Federal Reserve Bank and that the chairman main in Washington and assist in working out of each board of directors advise the Federal the details of the proposed plan. This com- Reserve Board when the report has been read mittee consists of Messrs. Rhoads, Seay, by the directors and had their full consideration. McKay, Hendricks, Talley, and Attebery. The Board several months ago adopted the practice of furnishing each Federal Reserve State Bank Admissions. Bank examined with a copy of the report of the examination. The First State Bank of De Kalb, Tex., was admitted to the Federal Reserve System during the month of April, the number of State in- Meeting of Governors. stitutions which have now joined the system being 34. The governors of the Federal Reserve Banks, called in conference by the Federal Reserve Board, held a meeting in Washington during the Meeting of Federal Reserve Agents. week of April 17. There were present at the The Federal Reserve Agents of the twelve meeting Messrs. Aiken, Strong, Rhoads, Federal Reserve Banks, who are also chairmen Fancher, Seay, McCord, McDougal, Miller of the boards of directors, have been requested Wold, Van Zandt, Calkins, and McKay; also by the Federal Reserve Board to meet in Mr. Tupper, Deputy Federal Reserve Agent, of Washington on Monday, May 29, 1916. St. Louis, and Mr. Hendricks, Mr. Talley, and This meeting is called in accordance with an Mr. Attebery, in charge of the transit depart- understanding reached when the Federal Bements of the banks of New York, Dallas, and serve Agents held their last conference. It St. Louis, respectively. will take up many matters having to do with The topics considered by the meeting in- the work of the Board and the operation of cluded the question of the handling of the gold- the banks. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MAY 1, 1910. FEDERAL KESBRVE BULLETIN. 207 Location of Federal Reserve Banks. tion required of each Federal Reserve Bank as a condition precedent to the commencement It is held, in an opinion of the Attorney of business ? General of April 14, that the Federal Reserve I. Board does not posses the power to change the present location of any Federal Reserve In my opinion of November 22, 1915, I expressed the view that the Federal Reserve Bank, and that the minimum capitalization of Act does not confer on the Federal Reserve $4,000,000 required by the Federal Reserve Board the power to abolish any of the existing Act for Federal Reserve Banks as a condi- Federal Reserve Banks or Federal Reserve tion precedent to commencing business is not districts. I believe that the reasoning of that a continuing requirement. The conclusions opinion is equally applicable to both branches of the first question now submitted. reached by the Attorney General in response to Section 2 of the Federal Reserve Act proan inquiry submitted by the Federal Reserve vides: Board to the President of the United States "As soon as practicable, the Federal Reare contained in the following paragraphs: serve Bank Organization Committee shall designate not less than eight nor more than twelve "To sum up my conclusion on the question cities to be known as Federal Reserve cities, of whether the Federal Reserve Board can and shall divide the continental United States legally change the present location of any * * * into districts, each district to con- Federal Reserve Bank, I am of opinion that tain only one of such Federal Reserve cities. the Board has no such power, and that such The determination of said organization compower is lacking whether there has been mittee shall not be subject to review except by alteration or readjustment in the district the Federal Reserve Board when organized: lines or not." Provided, That the districts shall be appor- "My conclusion as to the second question tioned with due regard to the convenience and submitted is that the Federal Reserve Act, customary course of business and shall not in prescribing a minimum capitalization of necessarily be coterminous with any State or $4,000,000 for Federal Reserve Banks as a States. The districts thus created may be condition precedent to commencing business, readjusted and new districts may from time to does not require that such minimum capitali- time be created by the Federal Reserve Board, zation shall be preserved under the circum- not to exceed twelve in all. Such districts stances." shall be known as Federal Reserve districts The text of the opinion follows: and may be designated by number. *• •*' * "Said organization committee shall be au- DEPARTMENT OF JUSTICE, thorized * * * to make such investigation Washington, April 14,1916. as may be deemed necessary by the said com- SIR: At the request of the Federal Reserve mittee in determining the reserve districts and Board, you have submitted the following in designating the cities within such districts questions for my opinion: where such Federal Reserve Banks shall be I. Can the Federal Reserve Board legally severally located." change the present location of any Federal The same section further provides: Reserve Bank: "The said committee shall supervise the or- (a) In the case where there has been no fanization, in each of the cities designated, of a alteration in the district lines; and 'ederal Reserve Bank, which shall include in (fr) In the case where there has been such its title the name of the city in which it is situreadjustment of district lines as in the opinion ated, as 'Federal Reserve Bank of Chicago.' " of the Board necessitates the designation of Since the Act thus provides that each city a new Federal Reserve city in order that due designated as a Federal Reserve city is to be the regard may be given to the convenience and location of a Federal Reserve Bank, it follows customary course of business as required by that a change in the location of a Federal section 2 of the Federal Reserve Act? Reserve Bank would in effect be the designa- II. Must the Federal Reserve Board, in tion of a new Federal Reserve city and the exercising its admitted power to readjust abandonment of one previously designated. preserve the $4,000,000 minimum capitaliza- I find no more warrant in the Act for the Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

208 FEDERAL BESEBVE BULLETIN. MAY 1,1916. abandonment of one Federal Reserve city and the Federal Reserve Board should come into the designation of a new one than I do for the existence, but that it had an independent abolition of a Federal Reserve district when function to perform and to that end was once established. invested with wide powers. That is to say, The power to designate a new Federal Re- its function was to organize the system as serve city (12 cities having been named by the contradistinguished from the function of the Organization Committee) or to phange the loca- Federal Reserve Board, which was primarily tion of a Federal Reserve Bank is not expressly to administer the system." conferred by the Act on the Federal Reserve The duty of designating Federal Reserve Board. If the Board possesses such power, it cities belonged to the Reserve Bank Organizais only by implication from the provision that— tion Committee as a part of the organization "The determination of said organization of the system, and the committee was required committe shall not be subject to review except by the Act to designate not less than 8 ndr by the Federal Reserve Board when organized: more than 12 cities. This duty is named Providedi That the districts shall be appor- first among those imposed upon the Organizationed with due regard to the convenience and tion Committee, and it is imposed by the same customary course of business and shall not provision of section 2 which required the comnecessarily be coterminous with any State or mittee to divide the United States info Federal States. The districts thus created may be re- Reserve districts. The same considerations adjusted and new districts may from time to that indicate an intention that the several time be created by the Federal Reserve Board, districts should be permanent would also indinot to exceed twelve in all.77 cate that the designation of the cities was not In my opinion there is no clear indication, to be made for temporary purposes, but was either in the provision just quoted or elsewhere intended to be permanent, subject; of course, in. the Act, of an intent.to confer on the Federal to change by Congress. The designation was Reserve Board the power to change the location to be made only after thorough investigation, of Federal Reserve Banks by the designation of and the same machinery was provided to new Federal Reserve cities. On the contrary, facilitate both the determination of the disthere are indications of an opposite intent. As tricts and the designation of the cities. Thus, stated in my opinion of November 22, 1915, section 2 provides: above referred to, "the merely negative state- "Said Organization Committee shall be ment that the determination of the Organiza- authorized to employ counsel and expert aid, tion Committee shall not be subject to review to take testimony, * * * j £ k an( O ma e except by the Federal Reserve Board when such investigation as may be deemed necesorganized clearly can not be enlarged into an sary * * * in determining the reserve affirmative grant of power to the Board to re- districts and in designating the cities within view and set aside everything done by the such districts where such Federal Reserve Organization Committee. The reasonable view Banks shall be severally located." is that by that language Congress meant that In my opinion, this coupling of the duty of the determination of the Organization Com- determining the districts with the duty of desmittee should not be subject to review at all, ignating the Federal Reserve cities within the except in so far as the subsequent provisions several districts shows an intention on the specifically authorize a review by the Federal part of Congress that the cities so designated Reserve Board. The only subsequent provi- are to constitute the fixed centers in the scheme sion authorizing a review of the determination or system of division, the duty of designating of the Organization Committee by the Federal the cities being coordinate with the duty of Reserve Board is contained in the sentence, forming districts around them. It was left to 'The districts thus created may be readjusted the discretion of the Organization Committee and new districts may from time to time be whether it should designate the full number of created by the Federal Reserve Board, not to Federal Reserve cities and establish the full exceed 12 in all/ " number of Federal Reserve districts permitted Again, as stated in that opinioji, "a reading by the Act. The committee elected to desigof the Act shows at once that the Organization nate and establish the full number authorized, Committee was created not merely for the thereby practically suspending the operation of purpose of attending to the formalities of the provision of the Act that "new districts organization or to serve as a stop-gap until may from time to time be created by the Fed- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MAY 1, 1916. FEDEBAL KESEEVE BULLETIN. 209 eral Reserve Board not to exceed 12 in all." view of the language of section 11 (e) of the The primary if not. the only purpose of that Act, which comers the power— provision must have been to take care of the "To add to the number of cities classified situation in the event that the Organization as reserve and central reserve cities * * • * •. Committee had designated less than 12 Federal or to reclassify existing reserve and central Reserve cities. reserve cities, or to terminate their designa- The fact that the Federal Eeserve Board, tion as such." aside from the provision relating to the creation It would have been equally easy had Conof new districts from time to time, was merely gress desired to grant the authority to desiggiven the power to readjust districts suggests nate ne^7 Federal Reserve cities to have that there was to be some permanent charac- said so in express terms. (Tillson v. United teristic or element in the districts created by States, 100 U. S., 43, 46, quoted in my opinion the Organization Committee. If, however, in of Nov. 22, 1915, supra.) addition to the power which the Federal Re- It may be suggested that changes in the serve Board has of readjusting districts by "customary course of business" or other changing their boundary lines, it also possessed changes not foreseen by the Organization the power to change the location of the respec- Committee may result in inconveniences which tive Federal Reserve cities within such dis- the Federal Reserve Board can not remedy tricts, then the Board could, by successive if its power to change the location of Federal changes of cities and boundaries, entirely oblit- Reserve cities is denied. The answer is that erate existing districts and substitute in their the remedy is with Congress, in so far as it place new districts totally different from those may not already be supplied by section 3, created by the Organization Committee. I do which authorizes the establishment of as not thinK that Congress intended to confer many branch banks in any district as may be such a power. found expedient. The Act provides that each Federal Reserve To sum up my conclusion on the question Bank is to include the name of the city in of whether the Federal Reserve Board can which the bank is located. By section 4 it is legally change the present location of any provided that the organization certificate of Federal Reserve Bank, I am of opinion that each bank shall state specifically— the Board has no such power, and that such "The name of such Federal Reserve Bank, power is lacking whether there has been an the territorial extent of the district over which alteration or readjustment in the district the operations of such Federal Reserve Bank lines or not. are to be carried on, the city and State in II. which said bank is to be located, the amount of capital stock, and the number of shares into Coming now to the consideration of the which the same is divided * *" *." second question submitted, namely, whether Upon the filing of such certificate with the the Federal Reserve Board, in exercising Comptroller of the Currency in the manner its admitted power to readjust, must preserve prescribed such Federal Reserve Bank— the $4,000,000 minimum capitalization re- "Shall become a body corporate and as quired of each Federal Reserve Bank as a such, and in the name designated in such condition precedent to the commencement organization certificate, shall have power of business, I am of opinion that this question * * * to have succession for a period of is to be answered in the negative. 20 years from its organization unless it is The Federal Reserve Act provides in secsooner dissolved by an act of Congress, or tion 2: unless its franchise becomes forfeited by "No Federal Reserve Bank shall commence some violation of law." (Sec. 4.) business with a subscribed capital less than It is to be noted that there is no provision $4,000,000." in the Act by which the Federal Reserve The same section also contains a provision Board may change the name of a Federal requiring subscriptions to the capital stock to Reserve Bank or amend its certificate in this be paid— respect. The whole tenor suggests permanency. " One-sixth * * * on call of the Or- The omission of Congress to grant, by ex- ganization Committee or of the Federal Repress language the pwer to change Federal serve Board, one-sixth within three months Reserve cities is significant, especially in and one-sixth within six months thereafter 38288—16 2 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

210 FEDERAL RESERVE BULLETIN. MAY 1, 1916. and the remainder of the subscription, or any liquidation or insolvency of such bank, the part thereof, shall be subject to call when board of directors shall cause to be executed a deemed necessary by the Federal Reserve certificate to the Comptroller of the Currency Board * * */\ I showing such reduction of capital stock and Section 4 contains the following provision: I the amount repaid to such bank." "When the minimum amount of capital In section 9 it is provided: stock prescribed by this Act for the organiza- "If at any time * * * a member bank tion of any Federal Reserve Bank shall have has failed to comply with * * * the regubeen subscribed and allotted, the Organiza- lations of the Federal Reserve Board, it shall tion Committee shall designate any five be within the power of the said Board, after banks * * * to execute a certificate of hearing, to require such bank to surrender its organization. * * * stock in the Federal Reserve Bank; *' * * "Upon the filing of such certificate with the and said Federal Reserve Bank shall, upon Comptroller of the Currency, the said Federal notice from the Federal Reserve Board, be re- Reserve Bank shall become a body corporate.'7 quired to suspend said bank from further The decrease of capital stock is authorized privileges of membership, and shall within by the following provision of section 5:. thirty days of such notice cancel and retire its "The outstanding capital stock shall be stock and make payment therefor in the manner increased from time tp time as member banks herein provided.}) increase their capital stock and surplus, or as It will be observed from the foregoing quoadditional banks become members, and may tations that the Federal Reserve Act expressly be decreased as member banks reduce their provides that no Federal Reserve Bank shall capital stock or surplus or Cease to be mem- commence business with a subscribed capital bers/7 of less than $4,000,000. (Sec. 2.) They were Additional provisions relating to the de- each to be organized when the minimum amount crease of capital stock are found in sections of capital stock had been subscribed. (Sec. 5 and 6, as follows: 4.) Only three-sixths of the capital subscribed "SEC. 5. * * * When a member bank is required to be paid in, the remainder being reduces its capital stock it shall surrender a left "subject to call when deemed necessary by proportionate amount of its holdings in the the Federal Reserve Board." (Sec. 2.) capital of said Federal Reserve Bank, and The Act specifically provides for the decrease when a member bank voluntarily liquidates, of capital stock (1) as member banks reduce it shall surrender all of its holdings of the their capital stock; and (2) as they cease to be capital stock of said Federal Reserve Bank members. (Sec. 5.) and be released from its stock subscription not Member banks may cease to be members for previously called. In either case the shares any of four causes— surrendered shall be canceled and the member (a) Voluntary liquidation (sec. 5); bank shall receive in payment therefor * * * (b) Insolvency (sec. 6); a sum equal to its cash-paid subscriptions on (c) Violation of regulations of Federal Rethe shares surrendered *• * *' less any serve Board (sec. 9); liability of such member bank to the Federal (d) Transfer from one Federal district to Reserve Bank. another through readjustment of districts "SEC. 6. If any member bank shall be de- (sec. 2). clared insolvent * * * the stock held by The Act specifically requires the cancellation it in said Federal Reserve Bank shall be can- of capital stock where membership ceases celed * * * and all cash-paid subscrip- under (a), (6), or (c). (Sees. 5, 6, and 9.) tions on said stock, with one-half of one per No specific provision is made for cancellation cent per month from the period of last dividend, of capital stock where membership ceases not to exceed the book value thereof, shall be under (d). first applied to all debts of the insolvent mem- While the minimum capital had to be subber bank to the Federal Reserve Bank, and scribed in order to commence business, the the balance, if any, shall be paid to the re- maintenance of that minimum is nowhere preceiver of the insolvent bank. Whenever the scribed by the Act. The fact, that the Board capital stock of a Federal Reserve Bank is re- is to determine whether more than half the duced, either on account of a reduction in subscription is to be paid in seems to indicate capital stock of any member bank or of the that the minimum to be subscribed was fixed Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MAY 1, 1916. FEDERAL RESERVE BULLETIN. 211 as a precaution to make sure that ample credit members as an incident of the exercise of the should be pledged to insure the success of the power of the Federal Reserve Board to readjust system. districts. The grant of the specific power to Not only is the maintenance of the minimum readjust carries with it, as fully as if expressed not prescribed, but express provision is made in the Act, the power to do what is necessarily for reducing the capital stock as, or whenever, incidental. (Broom's Maxims, 7th ed., 505; member banks cease to be members. This 199 U. S., 12.) language is general and includes in its terms My conclusion as to the second question suball cases in which member banks cease to be mitted is that the Federal Reserve Act, in premembers. It is coupled with no expressed scribing a minimum capitalization of $4,000,000' condition that the minimum capitalization be for Federal Reserve Banks as a condition precepreserved; and since the Federal Reserve Act dent to commencing business, does not require required the organization of the Federal that such minimum capitalization shall be Reserve Banks upon the subscription of the preserved under the circumstances. minimum, it is obvious that any reduction Very respectfully, whatever made after commencing business T. W. GREGORY, might reduce the capital below the minimum. Attorney General, It is plain that a member bank can be a mem- The PRESIDENT, ber only of the Federal Reserve Bank of the The White House. district in which both are located. This is obvious from the nature of the Federal Reserve districts and is assumed in sections 2, 4, and 9. Acceptances Not Subject to Stamp Tax, Of necessity, therefore, when the Federal Reserve Board, in the exercise of its power to The following ruling as to revenue stamps on readjust, transfers a member bank from one acceptances has been made by the Acting Comdistrict to another, such transferred bank must missioner of Internal Revenue^ Treasury Decease to be a member of the Federal Reserve Bank of the district from which it is transferred. partment, and no stamps need be used: When it thus ceases to be a member, the capital APRIL 3,1916. of the Federal Reserve Bank may be reduced; Hon. CHARLES S. HAMLIN, and there is nothing in the Act requiring the Governor Federal Reserve Board, reduction to be made subject to the mainte- Washington, D. G nance of a minimum capital. SIR: In response to your communication It is to be noted that section 5 provides that of the 27th ultimo, inclosing copy of a letter the capital stock shall be increased and may be received, you are advised that drafts, acceptdecreased under the conditions therein men- ances, overdrafts, and post-dated checks are tioned. Succeeding provisions of sections 5, not taxable under the act of October 22, 1914, 6, and 9, however, make it clear that may is as promissory notes: here used in the sense of shall, as applied to i our attention is invited to paragraph 1 of cases arising under (a), (5), and (c). It seems T. D. 2170, as follows: reasonable to infer that it is used in the same (1) In view of the decision made by the sense as. .applied to (d). But whether so used Supreme Court of the United States in the or used in its more literal sense is here imma- case of the United States v. Isham (17 Wall., terial, for so far as the answer to the question 496), that "the, liability of an instrument to submitted is concerned, the result is the same a stamp duty, as well as the amount of such whether the Board is required or merely author- duty, is determined by the form and face of the ized to reduce the capital when member banks instrument, and can not be affected by proof cease to be members. of facts outside of the instrument itselt/' this Nor can any significance be attached to the office is of the opinion that drafts, acceptfact that specific provision is made for reducing ances, overdrafts, and post-dated checks are the capital stock of a Federal Reserve Bank in not taxable under the above act as promissory eases arising under (a), (6), and (c), while the notes, even though they are used, in such a Act is silent as to cases arising under (d). The way as to perform some of the functions of a cases specifically provided tor include cases promissory note. where tne member banks cease to be members Respectfully, as the direct result of their own acts or conduct. DAVID A. GATES, Cases under {d) arise where banks cease to be Acting Commissioner. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

212 FEDEBAL RESERVE -BULLETIN. MAY 1, 1916. Federal Reserve Issues. of Federal Reserve notes, it also indicates that of this total no less than $138,407,000 merely Careless reading of the monthly statement took the place of gold or gold certificates, issued by the Treasury Department, showing which were withdrawn from circulation and the total amount of money and currency in impounded in the vaults of the Federal Reserve circulation, is responsible for certain mistaken Banks and of the Government. If it is desired inferences with respect to the status of Federal to determine the share of Federal Reserve Reserve note issues in the country's circulanotes in the total increase of circulation, the tion. That there has been a marked increase only proper method is to offset the increase in in the amount of money in circulation is made the circulation of these notes by the increase clear by the figures compiled by the Treasury in the amounts of gold in the hands of the Department, but careful analysis shows that Federal Reserve Banks and the Government the increase is represented almost exclusively and held as security against the Federal by the increase in the amount of gold certifi- Reserve notes issued. This is shown in the cates in circulation, representing gold held in following exhibit: the Treasury, the net addition to the total volume of currency made by the Federal Reserve notes being an insignificant fraction. Apr. 1, 1916. Apr. 1,1915. Increase. The statement issued on April 1 indicates Federal Reserve notes in cirthat the general stock of money in the United culation... $187,728,000 $40,637,000 $147,091,000 Gold impounded against Fed- States increased between April 1, 1915, and eral Reserve notes issued... 173,558,000 35,151,000 138,407,000 April 1, 1916, by $455,205,000, of which Net addition to total money in circulation. 14,170,000 5,486,000 8,684,000 $440,622,000 represents the increase in the amount of gold coin and bullion held in It is seen that the net expansion in circulathe Treasury. The increase of money in cirtion which may be properly imputed to Federal culation during the same period was about Reserve notes is $8,684,000 for the 12 months $433,003,000, of which $365,900,000 represents between April 1, 1915, and April 1, 1916. Adthe increase in the circulation of gold certifiditional light upon this question of "inflation" cates. is thrown by an analysis of the Federal Reserve Included in the total stock of money is the Board's bank statement for April 14, 1916, amount of Federal Reserve notes issued by from which the following pertinent data are the Government to the Federal Reserve gleaned: Banks. The statement indicates an increase Federal Reserve notes issued to Federal Reby $148,647,000 in the amount of such notes serve Banks.. $186, 761,000 issued during the year, and an increase of Of this amount there are secured by 100- $147,091,000 in the amount of such notes in per cent deposit of gold 176,883,000 circulation. The latter amount is arrived at The remainder........ 9,878,000 by deducting from the amount of notes issued is secured by 100 per cent of commercial pato the banks the amount held in the Treasury per and $3,951,000 of gold, which is 40 per among the assets of the Government. cent of the paper-secured notes. The circulation statement also shows in a The Federal Reserve Banks have on hand $22,526,000 of Federal Reserve notes. separate column the amount of gold held by The amount of Federal Reserve notes in acthe Federal Reserve Banks and the Governtual circulation is thus less by.... 12,648,000 ment against Federal Reserve notes issued. than the $176,883,000 of gold withdrawn from This amount increased during the last 12 circulation, and held by the Government months from $35,151,000 to $173,558,000, against Federal Reserve notes outstanding. The Federal Reserve Banks have bought up i. e., by $138,407,000 It may be seen, therefore, to and including Apr; 14, 1916, United that while the circulation statement indicates States bonds, most of which have the ciran increase of $147,091,000 in the circulation culation privilege, amounting to . 48,158,000 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MAY 1, 19.16. FEDERAL BESEHVE- BULLETIN. 218 Practically all of these bonds were sold by but the Comptroller of the Currency has national banks which formerly had circulation pointed out to your committee that under the out against them, which circulation has now old system certain, national banks in; reserve been retired. The Federal Reserve Banks and central reserve cities, having assets of have taken down Federal Reserve bank-note $1,000,000 or less and capital from $300,000 to circulation against a portion of these bonds, $400,000, paid a fee for examination ranging but in some cases this has been done simply for from $56 to $70, according to the amount of emergency purposes, and the Federal Reserve their capital stock and resources, while under bank notes not actually issued. the operation of the Federal Reserve Act the The actual amount of Federal Reserve bank same banks are paying a fee ranging from notes in circulation as of the 14th day of April $36.50 to $44.50. was $1,423,000. The reason why the circu- Banks having resources of from $1,500,000 lation statement shows more than this is be- to $10,000,000 in reserve and central reserve cause Federal Reserve bank notes, when issued cities, paid for their examinations under the old by the Treasury to the banks, are treated ".as system a fee ranging from $75 to $230, according issued" even though held in the vaults of the to capital axid resources, but these banks are bank. now paying from $54.50 to. $224.50. The comptroller informs your committee that only 38 per cent of the national banks in re- Cost of Bank Examinations. serve and central reserve cities have resources In the March issue of the Federal Reserve in- excess of $10,000,000, and that, therefore, Bulletin (p. 122) there was published a brief 62 per cent of the banks in reserve and central statement on the cost of national-bank; exam- reserve cities are now, according to this scale, inations, accompanied by a table showing in paying for their examinations less than they parallel columns the relative cost of examina- paid under the old plan, although examinations tion under both the old and the new systems.' are now more thorough and efficient than they The -Federal Reserve ' Board's committee on were before. audit and examination has recently submitted A bank with assets of $25,000,000, having a report to the Board containing the following capital of, say, $5,000,000, in reserve and cenfurther information on this subject. tral reserve cities formerly paid a fee of $410; As explained in the above-mentioned state- now the assessment against such a bank is ment, under the present system the examiners $524.50, the increase being, warranted by the are no longer compensated by fees, but receive' additional time devoted to the work by the fixed salaries out of a fund provided by assess- examiners and the greater thoroughness of their ments levied, upon the banks. Under the old examinations. system payments made by banks amounted in A bank in reserve and central reserve cities many cases to much less than cost of the exam- j with resources of $50,000,000 and a capital of ination. Assessments upon banks were made, I $10,000,000 paid under the old system a fee of as far as "country banks" were concerned, ! $710; under the new arrangement such a bai)k upon a basis of capital stock alone, without | pays $1,024.50, but it can not reasonably be reference to total assets. In reserve and central contended that approximate^ $1,000 is an exreserve cities higher assessments were levied, cessive charge for a thorough examination of which more nearly approximated the cost of | a bank having assets of $50,000,000. making the examinations. As a result there | Assessments against banks having assets of were gross inequalities, which have been recti- more than $50,000,000 are also greater under fied under the operation of the new law. It the present plan than formerly. The Compis true that some banks now pay considerably troller states to your committee, however, more for examinations than they formerly did, that of about 7,600 national banks in the Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

214 FEDERAL RESERVE BULLETIN. MAY 1, 1916. United States, only 32 banks, or less than one- rating as a country bank, whereas this bank half of 1 per cent of the total number, at the time now pays $1,024.50. Surely it can not be conof the December 31,1915, call, had assets in ex- tended that this is an unreasonable charge for cess of $50,000,000, and of these 32 banks 31 were examining so large a bank. located in reserve and central reserve cities. On December 31, 1915, there were only 23 Under the old system fees for the examina- country banks (one-third of 1 per cent), in tion of "country banks7' (that is, banks not in the United States which had resources in reserve and central reserve cities) having excess of $10,000,000. assets of less than $3,000,000 and capital in All country banks are now charged for exproportion, or, say, $25,000 to $750,000, aminations a fixed fee of $25, plus 2 cents per ranged from $20 to $75; under the present $1,000 of assets in excess of $25,000. Under system these banks pay from $25.50 to $84.50, the old system, examiners were required to pay being an increase of from $5.50 to $9.50 per traveling expenses and hotel bills out of the bank, according to the capital and assets. statutory fees received. As the earnings of These figures apply to 6,939 banks, or,96 the examiner depended upon the number of per cent of the total of 7,238 country banks. examinations made, there was a constant temp- There can be no question, however, that under tation to speed up the work of examination at the old system the statutory fee was in many the expense of thoroughness with superficiality cases wholly inadequate to provide fair com- as the inevitable result. pensation for efficient service. The Comp- These conditions no longer exist, and an extroller states that those country banks which aminer is now free to devote as much time to have resources in excess of $3,000,000 and cap- each bank as may be necessary for a thorough ital of $600,000 or more constitute about 4 per and efficient examination. Partly because of cent of all Country banks, and that under the the superficial character of national-bank exold system with the standard regulations they aminations as formerly made, and for the adwere charged a fixed fee of $75, irrespective of ditional reason that examiners7 reports were resources. sent to the Comptroller, without copies being The charge now imposed upon them is in given to the directors of the banks examined proportion to their resources, so that a country for their information, many banks felt the nebank with $5,000,000 of resources and capital cessity of providing for additional and more of, say, $750,000, which formerly paid $75, thorough examinations by special auditors, now pays $124.50, or an increase of $49.50. involving a considerable expense. Experience under the old system showed that The Comptroller of the Currency has notified it was impossible to make a thorough exami- the Board that it is his intention to inaugurate nation of the larger country banks for $75. the custom of furnishing the board of directors A fe6 of $224.50 for a thorough examination of each national bank examined with a report of a bank having $10,000,000 of assets is there- by the examiner, after each examination, from fore not to be regarded excessive. There is a which the directors will have an opportunity basis for the statement that in a few isolated of informing themselves of actual conditions cases banks have been charged under the new in their banks and of passing judgment upon system five to ten times as much as they were the character of the examination. It is, thereunder the old system, but this only occurs in fore, believed that in most cases banks will those cases where a very large bank is located find that independent examinations will herein a nonreserve city. A specific instance has after be a useless duplication and will disconbeen dited where a bank of this kind with tinue them, so that the result will be a subresources of approximately $50,000,000 paid, stantial saving in the expense incurred for under the old plan, only $75, due to its examinations. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MAY 1, 1916.. FEDERAL RESERVE BULLETIN. 215 Acceptances up to 100 Per Cent. to 100 per cent. Such banks therefore do not The following member banks of the Federal need to avail themselves of the 100 per cent Reserve System have requested and have to privilege, The list, above printed, of banks this date been granted authority by the Fed- given special permission to accept up to 100 eral Reserve Boa^d to accept, up to 100 per per cent does not include these latter banks. cent of their capital and surplus, drafts or bills of exchange growing out of transactions Withdrawal' of Bonds Securing Circulation. involving the importation or exportation of Under the construction placed upon the goods: National Bank Act by the office of the Comp- First National Bank, Boston, Mass. j troller of the Currency, an amount not to exceed Merchants' National Bank. Boston, Mass. | $9,000,000 of lawful money may be deposited in National Shawmut Bank, Boston, Mass. I any one month for the purpose of retiring Second National Bank, Boston, Mass. national-bank circulation, and withdrawing American Exchange National Bank, New York City. Bank of New York N. B. A., New York City. United States bonds on deposit to secure circu- Atlantic National Bank, New York City. lation. The limit for April was reached on the Irving National Bank, New York City. first day of the month. Applications for with- Mechanics and Metals National Bank, New York City. drawals are listed in the office of the Comp- Fourth Street National Bank, Philadelphia, Pa. troller in the order of their receipt and acted Tradesmen's National Bank, Philadelphia, Pa. Philadelphia National Bank, Philadelphia, Pa. uponin the order of the deposits of lawful money. First National Bank, Baltimore, Md. The $9,000,000 limit applies only to deposits Merchants-Mechanics' National Bank, Baltimore, Md. of lawful money. Any national bank, therefore, Bank of Charleston N. B. A., Charleston, S. 0. having on hand its own notes, signed or un- Merchants National Bank, Hampton, Va. signed, may return them to the department Merchants National Bank, Richmond, Va. National Bank of Danville, Danville, Va. for cancellation, and thus obtain the release of Whitney-Central National Bank, New Orleans, La. a corresponding amount of United States Commercial National Bank, New Orleans, La. bonds, provided the amount remaining with First National Bank, Chicago, 111. the Treasurer is equal to the minimum bond National Bank of the Republic, Chicago, 111. First National Bank, Hutchinson, Kans. requirement provided by the National Bank Act. First National Bank, St. Joseph, Mo. Crocker National Bank, San Francisco, Oal. Sale of 8 Per Cent Bonds. Anglo and London-Paris National Bank, San Francisco, Cal. Advice has been received by the Federal First National Bank, San Francisco, Cal, Reserve Board from one of the Federal Re- Wells-Fargo Nevada National Bank, San Francisco, Cal. serve Banks of the sale of the new Government Bank of California N. A., San Francisco, Cal. 3 per cent 30-year bonds, provided for in sec- First National Bank, Portland, Oreg. tion 18 of the Federal Reserve Act, at 103f, All member "banks are authorized under secwhen issued, and the sale of $100,000 of tion 13 of the Federal Reserve Act to accept one-year notes at 100}. The market for these in transactions based upon foreign trade up to conversion bonds and notes seems to be esan amount not exceeding 50 per cent of their tablished at about these figures. paid-in capital and surplus. A number of national banks and State banks January Bulletin Exhausted, and trust companies which have joined the Federal Reserve System have such large capital No copies of the January issue of the Federal and surplus that they can accept to a much Reserve Bulletin remain for distribution. It greater amount, based on 50 per cent of their is suggested that those who have copies of this capital and surplus, than can other member number preserve them for binding, as the banks which have received special permission Federal Reserve Board can not supply addifrom the Federal Reserve Board to accept up tional copies. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

216 FEDERAL EESERVE BULLETIN. MAY 1,1916. Commercial Failures in 1916. amount of liabilities, and in a subdivision of the table this same information as to the fail- There are given below statistics of commer- ures in manufacturing, trading, and other comcial failures in the United States for the first mercial lines. In addition, the bank failures quarter of 1916, compiled from the records of are given, and, with the totals for the entire R. G. Dun & Co. These show for each Fed- United States for the three months, the figures eral Reserve district the total number of com- for the corresponding period in the three premercial failures, the amount of assets, and the ceding years. Total. Manufacturing. Trading. Other commercial, Banks. District. Num- Num-i Num- Num- Number. Assets. Liabilities. ber. Liabilities. ber. Liabilities. ber. Liabilities. ber. Liabilities. No. 1—Boston 490 $1,768,330 $4,120,019 160 $1,630,732 $1,998,478 $490,809 No. 2—New York 945 5,276,521 16,768,121 332 8,997,340 548 5,740,264 2,030,517 No. 3—Philadelphia... 361 2,425,346 3,280,424 75 1,322,727 273 1,571,217 386,480 No. 4—Cleveland 416 2,503,716 3,194,279 101 815,532 286 2,164,026 214,721 No. 5—Richmond 423 2,265,118 3,456,399 70 791,212 343 2,619,574 45,613 $480,000 No. 6—Atlanta 510 3,659,430 6,907,150 57 2,137,721 442 3,954,708 814,721 2,525,000 No. 7-Chicago... 587 4,732,317 7,077,544 130 2,626,646 427 3,353,520 1,097,378 25,000 No. 8-St. Louis 392 2,202,761 3,189,366 65 653,112 310 2,448,712 87,542 880,000 No. 9—Minneapolis 180 1,768,533 1,992,283 43 918,027 130, 1,018,942 55,314 No. 10—Kansas City... 209 861,370 1,814,695 33 340,421 164 903.641 570,633 No. 11—Dallas 289 1,613,216 3,309,130 27 1,200,761 252 1,938,264 170,105 160,000 No. 12—San Francisco. 5.85 3,155,712 6,383,336 150 2,372,979 3,336,815 673,542 150,000 United States... 5,387 32,232,370 61,492,746 1,243 23,807,210 3,860 31,048,161 284 6,637,375 4,220,000 1915 .. 7,216 64,600,535 105,703,335 1,580 46,211,855 5,348 48,712,139 10,779,341 17,128,839 1914 4,826 54,543,553 83,221,826 1,147 34,644,880 3,489 36,500,570 190 12,076,376 10,020,579 1913 4,458 51,764,096 76,832,277 1,052 30,634,667 3,233 36,590,109 173 9,607,501 2,180,871 DISCOUNT KATES, Discount rates of each Federal Reserve Banhin effect Apt. 27, 1916. Trade acceptances. M o a f n a 1 d t 0 u 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 r t v a i y e e 1 . s s 0 , t M i o o n f c a 6 o l t 0 u u v s r d e i i r t a v i y 3 e e . s s 0 , t M i o o n f c a 9 o l 0 t u u v d s r e i i a r t v i y e e 6 s . s 0 , p l t i a 9 A u v p 0 r e g e a - r d r l s i a c t a o o y u n v c l s d e k - . r T in o c 6 lu 0 s d iv a e y . s, O in 9 v c 0 e l u r d 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,.... Cleveland Richmond Atlanta.. Atlanta (New Orleans branch).. *3f-4 Chicago St. Louis....... Minneapolis. Kansas City Dallas... I 3-5 San Francisco..-...-. 1 Bate for commodity paper maturing within 90 days. 2 Rate for bills of exchange in open market operations. 8 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. & Rate for commodity paper maturing within 30 days, 3J per cent; over 30 to 60 days, 4 per cent; over 60 to 90 days, 4£ per cent; over 90 days, percent. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MA? 1, 1916. FEDERAL RESEBVE BULLETIN. 217 EARNINGS AND EXPENSES OF FEDERAL earned net $51,246.16, or at the rate of 3.08 RESERVE BANKS DURING QUARTER per cent per annum on an average capital of ENDING MARCH 31, 1916. $6,650,000. There are presented below detailed figures of The St. Louis and San Francisco banks show earnings and expenses of each of the Federal excesses of current expenses over earnings for Reserve Banks for the first three months of the the quarter, though the latter bank had a surthe current year, in continuation of similarfigures plus of earnings over operating expenses. published in the Bulletin for previous quarters. Of the total earnings for the quarter, 34.2 per cent was from bills discounted, 20.5 per The combined earnings of all the Federal cent from municipal warrants, 20.2 per cent Reserve Banks for the first quarter of the from bills purchased in the open market, 19.6 present year are given as $755,707.11, and the per cent from United States bonds, and the total current expenses as $498,039.48. Exremainder from sundry operations, largely expenses of operation were $415,861.39 for the change and commissions received. These perquarter, while the cost of Federal Reserve notes centages vary according to banks and groups issued by the banks, expenses caused by the of banks. Thus, 58.5 per cent of the Boston exchange of Federal Reserve notes between Federal Reserve Bank's earnings came from banks, and by the shipment of notes to Washingbills bought, almost exclusively bankers7 acton for destruction, also amounts written off to ceptances, and nearly 28 per cent from municprovide for the gradual amortization of the cost ipal warrants. The New York bank reports of notes issued by certain banks prior to July about 48 per cent of its earnings under the 1, 1915, other amortization charges, and deprehead of " Bills bought in open market" and ciation on furniture and equipment account for 42.4 per cent under the head of " Warrants/7 the additional quarterly expense of $82,178.09. while the per cent share of earnings from dis- The excess of total earnings over total curcounted paper was less than 3 per cent for the rent expenses for the quarter was $257,667.63, Boston bank and less than 2 per cent for the or at the yearly rate of about 1.9 per cent on New York bank. In the case of the three southan average paid-in capital of $54,904,000. The ern banks the earnings from discounts account most favorable financial results are reported by for 88 per cent of their total earnings for the the southern banks. Thus, Richmond shows quarter. Chicago derived almost one-third of an excess for the quarter of earnings over curits quarterly earnings from United States bonds rent expenses of $43,948.51, or at an annual and about 30 per cent from discounts, while rate of 5.25 per cent on a calculated average Cleveland7s largest share of earnings came from capital of $3,350,000; Atlanta, including its " municipal warrants.77 branch at New Orleans, a like: excess of Of the total expenses of operation, about 28 $24,273.63, or at an annual rate of 4.01 per per cent went as compensation to bank officers cent on an average capital of $2,419,000, and arid about 25 per cent as salaries to the clerical Dallas an excess of $29,805.54, or at an annual staff of the banks. The amount contributed rate of 4.34 per cent on an average capital of by the banks for the support of the Federal $2,749,000. Reserve Board was the next largest item and The Boston bank's excess of quarterly earnconstituted over 13 per cent of the total exings over current expenses was $41,792.18, or at penses of operation, while the item of "rent" the annual rate of 3.24 per cent on an average represents 9.4 per cent of these expenses. capital of $5,158,000. This excess is more The total current expenses shown are exthan sufficient to wipe out the deficit of clusive of $16,839.68 expended in the purchase $34,603 for the period ending December 31 of additional furniture and equipment and of 1915. Kansas City reports an excess of $12,211.03, the cost of printing and shipping $25,628.70, or at the rate of 3.4 percent on Federal Reserve notes. an average capital of $3,011,000. Chicago 38288—16—3 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Earnings and expenses of each Federal Reserve Bank and of the system as a whole for the quarter ending Mar. -31, 1916. to M EARNINGS. 00 Atlanta Boston. New York. d P el h p i h la i - a. Cleveland. Richmond. (i O n . c N r l l u e e a d w n in s g Chicago. St. Louis. M ap i o n l n i e s. - K C a i n t s y a . s Dallas. Sa c n i s F co ra . n- Total. branch). Bills discounted—members.. $1,720.44 $2,324.47. $2,179.81 $3,558.43 $63,900.19 $46,985.64 $30,929.69 $9,785.00 $12,154.54 $29,218.35 149,996.31 $5,594.87 $258,347.74 I B n i v ll e s s b tm ou e g n h t t s : in open market. 44,520.52 61,584.43 13,440.61 4,939.35 1,093.60 2,269.74 10,425.83 4,139.92 2,874.64 2,716.88 62.50 4,802.05 152}870.07 United States bonds 4,999.45 2,292.16 16,727.16 21,290.45 3,576.02 1,465.77 33,217.47 12,843.55 9,811.45 22,194.79 6,732.02 13,137.78 148,288.07 Warrants...... 21,328:03 54,615.65 16,741.16 23,108.99 830.42 869.37 14,598.99 4,332.43 8,143.18 3,422.84 189.01 6,401.32 154,581.39 Commissions received 906.94 7,791.71 17.58 8,716.23 Amortization of discount on * United States bonds....... 8,367.48 8,367.48 Sundry profits.. 2,649.58 239.93 609.27 107.41 2,708.73 11,501.06 3,047.86 1,121.68 316.65 1,037.69 1,196.27 24,536.13 Total 76,124.96 128,848.35 49,, 698.01 53,004.63 69,400.23 54,316.83 100,673.04 34,148.76 34,105.49 66,236.99 58,017.53 31,132.29 755,707.11 CURRENT EXPENSES. Expenses of operation: Assessment account of expenses of Federal Reserve Board $5,158.15 $11,055.20 .9.40 $5,938.14 $3,353.80 $2,422.40 $6,655.70 $2,782.50 $2,546. 55 $3,037.80 $2,772.60 $3,942.75 $54,934.99 Federal Advisory Council 113.50 82.25 147.13 150.00 88.92 302.20 150.00 276. 75 221.45 150.00 150.00 1,832.20 Governors' conferences.. 255.61 399.25 316.03 497. 79 381.69 400.53 426.34 377.78 486.41 452.73 168.30 727.43 4,889.89 Federal Reserve Agents' conferences. 54.63 76.00 126.10 256.73 Salaries:— Bank officers 8,374.95 19,699.92 9,499.98 9,687.48 6,728.12 7,666.64 12,750.00 11,675.00 6,499.98 6,124.91 8,229.15 9,900.00 116,836.13 Clerical staff.. 4,574.12 22,369.40 8,680.78 6,642.03 6,825.27 8,537.22 12,385.99 8,399.08 4,962.42 9,^11.33 6,600.97 5,350.85 104,539.46 Special officers and watchmen 1,547.50 1,497.07 96.00 150. 00 799.20 1,320.00 405.00 233.75 428.68 30.00 6,507.20 Another 693.34 14.40 410.65 853.12 300.00 466.00 2,737.51 Directors'— Fees 810.00 1,200.00 770.00 420.00 780.00 720.00 520.00 1,190.00 610.00 1,140.00 360.00 600.00 9,120.00 Per diem allowance.. 230.00 360.00 220.00 230.00 480.00 484.00 230.00 210.00 180.00 745.00 250.00 130.00 3,749.00 Traveling expenses.. 164. 70 445.00 198.37 238.25 660.99 646.16 357.50 226.50 269.60 1,194.83 494.20 4,896.10 Officers' and clerks' traveling expenses (less amounts included in Governors' and Federal Reserve Agents' conferences) 263.35 301.50 172.16 i -17.71 280.56 100.50 40.39 140.53 307.40 i -18.40 1,570.28 Legal fees 400.00 1,000.00 500.06 725.00 150.00 645.16 375.00 150.00 622.40 .1,508.67 6,076.29 Rent 3,125.01 10,300.00 2,124.99 1,513.08 1,000.00 3,004.00 6,643.75 4,180.57 1,250.01 2,124.99 3,690.00 38, &56.40 Telephone 221.23 356.66 279.89 233.99 100.60 82.02 313.10 184.81 142.29 156.89 245.78 123. 70 2,440.96 Telegraph 7.40 69.60 8.20 53.04 55.34 108.84 70.60 53.99 37.93 104.13 159.69 84.87 813.63 Postage 490.84 2,214.52 793.14 620.72 1,090. 70 854.11 1,479.27 1,304.38 1,175.62 2,516.83 629.53 429.95 13,599.61 Expressage 1.52 30.28 487.20 3.40 418.51 166.42 356.85 38.31 483.93 1,339.57 38.00 3,363.99 Insurance and premiums on fidelity bonds.. 383.48 454.83 861.82 583.35 1 -5.25 417.74 1,256.95 556.54 1,016.10 411.35 105.00 919.01 6,960.92 Light, heat, and power.. 264.45 403.50 372.00 65.18 420.28 322.50 497.78 92.40 2,438.09 Printing and stationery.. 429.97 3,032.61 754.31 715.16 1,007.43 669.63 i, 030.64 1,112.75 286.10 1,226.64 777.78 1,135.37 12,178.39 Repairs and alterations.. 39.94 8.70 19.77 11.75 161.50 58.67 122.91 22.10 104.29 6.50 331.24 887.37 All other expenses, n..s.. 1,616.73 *3,*946."53" 778.32 170.84 772.83 1,190.12 1,440.69 962.03 486.80 1,614.37 2,574.99 722.00 16,276.25 Total expenses of operation 26,924.95 78,530.77 34,033.95 28,572.79 25,451.72 28,748.77 49,426.88 34,550.69 20,936.11 31,484.50 27,312.42 29,887.84 415,861.39 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Cost of Federal Reserve notes issued by bank (including expressage, insurance, etc.).. 2 1,582.40 % 040.00 765.07 39.05 394.44 78.50 899.57 654.12 13,453.15 Miscellaneous charges account Federal Reserve notes 182.48 100.67 283.15 Amortization charges: Federal Reserve notes 4,999.98 901.56 1,212.00 2,400.00 1,380.54 727.38 11,621.46 All other organization expenses 4,325.43 9,041.85 3,939.63 5,845.09 10,631.16 1,800.00 6,621.36 5,635.62 47,840.14 Premiums on United States bonds 143.39 143.39 Depreciation on furniture and equipment 1,500.00 1,349.01 924.57 914.1§ 1,255.38 793.68 1,200.00 900.00 8,836.80 Total current expenses. 34,332.78 102,961.61 38,898.15 37,181.15 25,451.72 30,043.20 49,426.88 47,187.53 26,730.55 40,608.29 28,211.99 37,005.63 498,039.48 Excess of earnings over current expenses. 41,792.18 25,886. 74 10,799.86 15,823.48 43,948.51 24,273.63 51,246.16 3-13,038.77 7,374.94 25,628.70 29,805.54 » -5,873.34 257,667.63 COST OF FURNITURE AND EQUIPMENT, INCLUDING VAULTS. Balance as reported on Jan. 1,1916 . $9,595.24 $26,980.36 $18,491.31 $20,187.08 $9,500.00 $6,228.92 $23,000.00 $20,346.13 $54,159.64 $41,828.85 $33,255.41 $6,422.59 $269,995.50 Additional purchases during quarter. 2,882.44 3,017.59 157.69 193.30 382.50 950.00 7,744.77 126.25 626.25 758.89 16,839.68 Total 12,477.68 29,997.95 18,491.31 20,344.77 9,693.30 6,611.42 23,950.00 28,090.90 54,285.89 42,455.10 34,014.30 6,422.59 286,835.21 Depreciation charged during quarter 1,500.00 1,349.01 924.57 914.16 1,255.38 793.68 1,200.00 900.00 8,836.80 Balance Apr. 1,1916 10,977.68 28,648.94 17,566-. 74 19,430.61 9,693.30 5,356.04 23,950.00 27,297.22 53,085.89 41,555.10 34,014.30 6,422.59 277,998.41 COST OF UNISSUED FEDERAL RESERVE NOTES. Balance as reported Jan. 1, 1916.... $38,633.35 $232,086.79 $43,172.04 $42,757.61 $17,368.34 $9,502.36 $60,380.06 $22,363.46 $19,932.85 $11,252.52 $9,924.60 $34,914.91 $542,288.89 Additional cost of Federal Reserve notes during quarter.... 414.32 299.65 187.60 I 151.20 3,883.58 2,027.71 240.00 930.47 11.50 4,065.00 12,211.03 Total 39,047.67 232,386.44 43,359.64 42,908.81 21,251.92 9,502.36 2,407.77 22,363 46 20,172.85 12,182.99 9,936.10 38,979.91 554,499.92 3 Cost of Federal Reserve notes issued and charged to current expenses during quarter <2,082.40 9,040.00 765.07 39.05 394.44 78.50 9.57 654;12 13,953.15 Balance Apr. 1,1916 36,965.27 | 223,346.44 43,359.64 42,143.74 21,251.92 9,463.31 62,407.77 22,363.46 19,778.41 12,104.49 9,036.53 38,325.79 540,546.77 1 Credit. 2 Exclusive of $500, cost of Federal Reserve bank-note plates charged to "Expenses of operation" (all other expenses n. s.). a Deficit. *Includes $500 cost of Federal Reserve bank-note plates charged to expenses of operation. to Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

220 FEDERAL BESEBVE BULLETIN. MAY 1, 1916. GOLD SETTLEMENT FUND. Amount of clearings andtransfers, Federal Reserve Banks, from Mar. 24, 1916,to Apr, 20, 1916^ inclusive. Obligations settled through the gold settlement fund for the four weeks ending April 20 cle T a o ri t n al gs. Balances. Transfers. amounted to $213,222,000 with a change in ownership of the gold held in the fund, during Settlement of— the period, of $21,911,000, or 10.27 per cent A M p a r r . . 3 6 0 , , 1 1 9 9 1 1 6 6..... $ 5 4 1 6 , , 7 8 2 7 6 5 , , 0 0 0 0 0 0 $ 8 4 , , 2 3 3 55 5 , , 0 0 0 0 0 0 2 $ ,4 5 9 2 1 9 , , 0 0 0 0 0 0 of the obligations settled, a proportion much, A A p p r r . . 2 1 0 3 , , 1 19 9 1 1 6 6 5 5 5 1 , , 9 6 3 8 0 4 , , 0 0 0 0 0 0 4 5 , , 4 0 1 7 9 5 , , 0 0 0 0 0 0 3,1 8 6 1 8 9 , , 0 0 0 00 0 higher than usual. Some of the changes, how- 206,215,000 22,084,000 7,007,000 ever, operated to offset those previously Previously reported 588,895,000 68,032,000 22,850,000 made, so that the percentage of net changes of Total since Jan. 1, 1916.. 795,110,000 90,116,000 29,857,000 ownership to total obligations settled since Total for 1915 1,052,649,000 the establishment of the fund declined to 6.01 Grand total 1,847,759,000 per cent. Changes in oiunership of gold. To Mar. 23,1916. From Mar. 24,1916, to Apr. 20,1916.1 To 19 t 1 a 5 l , ch to a n A g p e r f . r o 2 m 0,1 H 91 a 6 y .2 20, Federal Eeserve Bank of— Balance to credit Mar* Decrease. Increase. 2 n 3 e , t 1 9 d 1 e 6 p , o p s l i u ts s Ap B r. a 2 la 0 n ,1 c 9 e 16. Decrease. Increase. Decrease. Increase. of gold since that date. Boston. $4,287,000 $1,443,000 $9,617,000 $8,174,000 $3,887,000 New York. 87,413,000 20,587,000 3,427,000 $17,160,000 $164,573,666 Philadelphia $12,970,000 1,180,000 6,240,000 5,060,000 18,030,000 Cleveland 7,935,000 9,935,000 8,159,000 1,776,000 6,159,000 Richmond 13,052,000 12,522,000 10,679,000 1,843,000 11,209,000 Atlanta *. 12,617,000 3,007,000 2,489,000 518,000 12,099,000 Chicago . 9,601,000 6,519,000 9,659,000 3,140,000 6,451,000 St. Louis ... 7,427,000 2,807,000 5,039,000 2,232,000 9,659,000 Minneapolis* ^ . 6,198,000 4,598,000 4,643,000 45,000 6,243,000 Kansas City 9,418,000 4,315,500 3,701,500 614,000 8,804,000 Dallas . . 12,696,000 7,228,500 9,715,500 2,487,000 15,183,000 San Francisco. 18,988,000 2,368,000 3,141,000 773,000 19,751,000 Total 101,301,000 101,301,000 76,510,000 76,510,000 21,911,000 21,911,000 111;024,000 111,024,000 1 Changes in ownership of gold during period Mar. 24,1916, to Apr. 20,1916, equal 10.27 per cent of obligations settled. 2 Total changes in ownership of gold equal 6.01 per cent of obligations settled. Summary of transactions, Mar. 24, 1916, to Apr. 20, 1916. Balance Gold. Transfers. Settlement of Mar. 30,1916. Mar. 30, Federal Reserve last 1916, bal- Bank of— st M at a e r m . e 2 n 3, t, With- Net • Total Total Net fu a n n d c e a i f n ter 1916. drawn. Deposited. Debit. Credit. debits. debits. credits. credits. clearing. Boston $3,443,000 $1,000,000 $500,000 $4,360,000 $4,542,000 $182,000 $3,125,000 New York 10,587,000 *$3*258,"666' 13,389,000 10,131,000 7,329,000 Philadelphia 6,440,000 6,863,000 8,069,000 1,206,000 7,646,000 Cleveland 10,025,000 50,000 186,000 1,151,000 965,000 9,789,000 A Ri t c la h n m ta ond 1 5 1 , , 1 9 7 52 7 , , 0 0 0 0 0 0 "i*666,666* $ 3 6 0 0 , , 0 0 0 0 0 0 $500,000 29,000 1 7 2 7 5 9 , , 0 0 0 0 0 0 6 1 , , 7 5 4 1 4 6 , ,0 0 0 00 0 5 1 , , 9 3 6 9 5 1 , , 0 0 0 0 0 0 1 4 0 , , 1 7 1 3 1 3 , , 0 0 0 0 0 0 Chicago 6,519,000 6,599,000 7,547,000 948,000 7,467,000 St. Louis 2, £47,000 4,940,000 5,790,000 850,000 3,497,000 Minneapolis 4,598,000 7,000 118,000 111,000 4,591,000 Kansas'City 3,878,000 723,000 806,000 83,666 3,961,000 Dallas .. 10,036.000 226,666 29 000 278,000 994,000 716,000 10,503,000 San Francisco 4,368,000 194,000 564,000 370,000 2,738,000 2,000,000 Total 79,670,000 4,270,000 90,000 529,000 529,000 4,355,000 46,875,000 46,875,000 4,355,000 75,490,000 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MAY 1, 1916. FEDERAL RESERVE BULLETIN. 221 Summary of transactions, Mar. 24, 1916, to Apr. 20, 1916—Continued. Balance Gold. Transfers. Settlement of Apr. 6,1916. Apr. 6) Federal Reserve last 1916, bal- Bank of— statement, ance in M 1 a 9 r 1 . 6 3 . 0, 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 er o d t i a t l s. cr N ed e i t ts. f c u l n e d a ri a n f g te . r Boston $3,125,000 $500,000 $4,940,000 $6,393,000 $1,453,000 $5,078,000 New York 7 329 000 $10,000,000 11,000,000 $8,223,000 17,751,000 9,528,000 8,106,000 Philadelphia 7 646 000 $2,500,000 120,000 6,977,000 9,091,000 2,114,000 7,380,000 Cleveland 9 789 000 40,000 20,666 840,000 1,043,000 203,000 9,972,000 Richmond 10 733 000 5oo 666 5,635,000 6,736,000 1,101,000 11,334,000 Atlanta 4 111 000 1,200,000 300,000 1,431,000 1,571,000 140,000 2,751,000 Chicago 7,467,000 1,350,000 7,250,000 7,959,000 709,000 9,526,000 St. Louis 3,497,000 100,000 20,000 621,000 12,000 5.135,000 5,123,000 3,986,000 Minneapolis . 4,591,000 79,000 176,00b 97,000 4,688,000 Kansas City.. 3 961,000 i62,500 756,666 50,000 1,115,000 1,485,000 370,000 4,868,500 Dallas 10,503,000 2,157,500 50,000 621,000 468,000 2,080,000 1,612,000 9,386,500 San Francisco 2 738,000 105,000 541,000 436,000 3,174,000 Total 75,490,000 6,160,000 10,920,000 2,491,000 2,491,000 8,235,000 51,726,000 51,726,000 8,235,000 80,250,000 Balance Gold. Transfers. Settlement of Apr. 13,1916. Apr. 13, Federal Reserve last 1916, bal- Bank of— statement, ance m A 1 p 9 r 1 . 6 6 . , 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 l n e d a ri a n f g te . r Boston . . $5,078,000 11,000,000 $1,400,000 $5,678,000 $6,254,000 $576,000 $6,054,000 New York 8,106,000 500,000 $2,264,000 15,127,000 12,863,000 6/342,000 Philadelphia 7,380,000 3,000,000 6,325,000 7,749,000 1,424,000 5,804,000 Cleveland. 9,972,000 *" iiio 666 "YIi3,"666" 1,761,000 648,000 8,719,000 Richmond 11,334,000 80,000 $160,000 1,000,000 34,000 6,837,000 6,803,000 10,380,000 Atlanta 2,751,000 1 000 000 1,523,000 2,403,000 880,000 2,631,000 Chicago 9,526,000 1,040,000 576,000 7,393,000 6,817,000 9,990,000 St. Louis. .. 3,986,000 228,000 5,370,000 6,211,000 841,000 5,055,000 AfjjnriP!ap(VHs 4 688 000 58,000 147,000 89,000 4,630,000 Kansas City 4,868,500 150,000 50,000 310,000 1,252,000 942,000 4,358,500 Dallas 9,386,500 360,000 228 000 197,000 895,000 698,000 8,496,500 San Francisco 3,174,000 750,000 64,000 74,000 10,000 2,360,000 Total 80,250,000 4,590,000 160,000 3,168,000 3,168,000 4,419,000 51,684,000 51,684,000 4,419,000 75,820,000 Balance Gold. Transfers. Settlement of Apr. 20,1916. Apr. 20, Federal Reserve last 1916, bal- Bank of— statement, ance in A 1 p 9 r 1 . 6 1 . 3, 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. fu cl n e d a ri a n f g te . r Boston $6,054,000 $5,414,000 $8,977,000 $3,563,000 $9,617,000 New York 6,342,000 $2,915,000 15,678,000 12,763,000 3,427,000 Philadelphia .. 5,804,000 $120,000 $521,000 205,000 9,002,000 8,797,000 6,240,000 Cleveland. 8,719,000 $200,000 360,000 1,412,000 1,052,000 8,159,000 Richmond 10,380,000 ""*43O,'666" 131,000 7,392,000 7,261,000 10,679,000 Atlanta. ...'. . 2,631,000 566,666" 88," 666" 1,868,000 2,138,000 270,000 2,489,000 Chicago 9 990,000 200,000 531,000 7,885,000 7,354,000 9,659,000 St. Louis 5,055,000 260,000 276,000 5,507,000 5,231,000 5,039,000 Minneapolis ...... 4,630,000 114,000 127,000 13,000 4,643,000 Kansas City 4,358,500 657,000 1,339,000 682,000 3,701,500 Dallas . . . 9,496,500 si2o,666 109,000 10,000 206,000 644,000 438,000 9,715,500 San Francisco 2,360,000 10 000 113,000 904,000 791,000 3,141,000 Total 75,820,000 120,000 810,000 819,000 819,000 5,075,000 55,930,000 55,930,000 5,075,000 76,510,000 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

222 FEDERAL RESERVE BULLETIN. MAY 1,1916. Federal Reserve Agents' Fund—Summary of transactions Mar. 24, 1916, toApr. 20, 1916. Week ending Mar. 30,1916. Week ending Apr. 6,1916. Mar. 23, Federal Reserve Agent at— 1916, balance. d W ra i w th n - . Deposited. Balance. d W ra i w th n - . Deposited. Balance. Philadelphia $3,480,000 $3,480,000 $120,000 $3,360,000 Richniond. . .. 6,530,000 6,530,000 6,530,000 Atlanta ....... 11,950,000 $1,000,000 12,950,000 $1,000,000 13,950,000 Chicago . 4. . . . .. 3,410,000 3,410,000 3,410,000 St Louis ... . . - . - 4,440 000 4,440,000 50,000 4,390,000 Minneapolis...- i » 2,350,000 2,350.000 2,350,000 Kansas City... ±. . -.. 4,100,000 4,100 000 4,100,000 Dallas .. 540 000 $70,000 200,000 670,000 110,000 600,000 1,160,000 San Francisco 10 570 000 10,570,000 10,570,000 Total .. .*....-. 47,370,000 70,000 1,200,000 48,500,000 280,000 1,600,000 49,820,000 Week ending Apr. 13,1916. Week ending Apr. 20,1916. Federal Reserve Agent at— d W ra i w th n - . Deposited. Balance. d W ra i w th n - . Deposited. Balance. Philadelphia. S3,360.000 $120,000 $3,240,000 Richmond $100,000 6,430,000 430,000 6,000,000 Atlanta * 13,950,000 13,950,000 Chicago -•••... . . . . . .. . . . .. 3,410,000 3,410,000 St Louis 4,390,000 260,000 4,130.000 Minneai) ol is 2,350,000 2,350,000 ^00,000 3,900,000 3,900,000 Dallas . . 70,000 $310,000 1,400000 50,000 $100,000 1,450,000 Sail Francisco 10 570 000 10,570,000 Total.. . . 370,000 310,000 49,760.000 | 860,000 100,000 49,000,000 Gross Individual and Bank Deposits, The subjoined chart illustrates graphically trates the small ratio which bank deposits bear the fluctuation in individual and bank de- to individual deposits in country banks, and posits in the three groups of national banks, the increasing ratio of bank deposits to individto wit, country, reserve city, and central ual deposits in reserve city banks, and, finally, reserve city banks, as disclosed by the various the very high ratio in the case of central calls of the Comptroller of the Currency, reserve .city banks where the amount of bank beginning with June 30, 1914, and ending deposits almost equals the individual dewith December 31, 1915. The chart also illus- posits. The figures are also given herewith. Gross individual and bank deposits of national hanhs. Held by country banks. Held by reserve city banks. Held by central reserve city banks. Pate of Comptroller's call. Individual Bank Individual Bank Individual Bank deposits. deposits. deposits. deposits. deposits. deposits.. 1914. June 30... $3,666,828,850 $250,731,058 $1,557,876,365 $888,079,318 $1,153,143,079 $1,047,092,253 Sept. 12 3,609,368.840 241,713,201 1,547,161,962 811,087,853 1,081,139,571 897,097,572 Oct. 31 3:577,813,620 228,286,090 1,520,882,734 797,149,933 1,085,517,142 866,293,005 Dec. 31 3,586,723,612 236,026,436 1,586,527,270 755,368.045 1,193,445,839 878,377,169 1915. Mar.4 3,644,546,338 259,377,030 1,578,966,280 847,503,986 1,126,710,428 1,136,863,718 May 1.. 3,644,397,137 238,278,237 1,656,857,872 S43,440,977 1,364,258,529 1,144,814,983 June 23 3,653,961,172 225,357,283 1,693,932,700 815,263,079 1,265,341,766 1,167,385,754 Sept.2 3,725.438,771 235;824,787 1,710,632,538 869,980,357 1,327,389,310 1,360,250,526 Nov. 10. 3,913'481,802 269,500,836 1,876,114,617 972,338,868 1,658,202,888 1,467,833,679 Dec. 31 3 988 7S6J353 284,476,679 1,896,708,187 987,557,975 1,778,449,538 1,466,397,020 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MAY l, 1916. FEDERAL RESERVE BULLETIN". 223 Gross individual and bank deposits of national hanks. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

224 FEDEKAL RESERVE BULLETIN. MAY 1,1916. INFORMAL RULINGS OF THE BOARD. Below are reproduced letters sent out from Bonds Securing Circulating Notes. time to time over the signatures of the officers Under the provisions of the National Bank Act any national bank desiring to withdraw its of the Federal Reserve Board which contain circulating notes in whole or in part may, upon information believed to be of general interest the deposit of lawful money with the Treasurer, to Federal Reserve Banks and member banks take up the bonds deposited with the Treasurer of the system: for the security of such notes, provided, however, that the amount of bonds on deposit shall Clayton Act and State Banks. not be reduced below $50,000 in the case of a You are advised that section 8 of the Clay- bank having a capital of more than $150,000, ton Act prohibits a person who is a director nor below one-fourth the amount of the capital of a' State bank with resources aggregating in the case of a bank whose capital is $150,000 more than $5,000,000 from serviiig at the or less. same time as a director of any national bank, Section 18 of the Federal Reserve Act proregardless of the size or location of that na- vides in part that—tional bank. That section, however, does not "Any member bank desiring to retire the prohibit a person who is a director of a State whole or any part of its circulating notes may bank with resources aggregating more than file with the Treasurer of the United States an $5,000,000 from serving at the same time as application to sell for its account, at par and an officer or employee of any national bank, accrued interest, United States bonds securing unless both institutions are located in the same circulation to be retired.7' city of more than 200,000 inhabitants or un- One of the purposes of this section, as its less the State bank in question is a member of title indicates, was to provide for the refunding the Federal Reserve System. of bonds deposited by national banks to secure You are advised, therefore, that under the circulation. It will he observed that, while a facts as presented in your letter there is no limit is placed on the amount which the Fedprohibition against a director in the trust com- eral Reserve Banks may purchase in any one pany you name from serving at the same time year, no limitation or restriction was incorpoas an officer or employee of the consolidated rated in this section on the amount that any bank referred to. national bank may sell. You are accordingly advised that under the MARCH 4, 1916. interpretation of this section, which has been adopted by the Treasury Department, national banks are not required to maintain a minimum amount of bonds on deposit with the Treasurer, Foreign Bank Branches In United States. provided such bonds are sold through the In reply to your letter of March 30, 1916, Treasurer under the provisions of section 18. you are advised that there is no provision in the laws of the United States relating to the right APRIL 8, 1916. of a foreign bank to establish branches in this country. A proper determination of that question, therefore, depends upon the laws Rediscounts of Member Banks. of the various States in which it is intended In answer to your letter of April 8, I would to operate such branches. state that our counsel advises us as follows: A foreign bank, like a corporation of any (1) Section 5202 of the Revised Statutes of other State of the Union, which intends to the United States, providing that no national establish a branch in any particular State banking association shall be indebted or liable of the United States, would nave to conform to an amount exceeding the amount of its to the laws of that State, not only as to the capital stock actually paid in and remaining conditions of its admission, but also as to the undiminished by losses or otherwise, was manner and extent of its operations after amended by the Federal Reserve Act, by inreceiving permission to commence business. serting another exception, namely, liabilities AJPBIL 4, 1916. incurred under the Federal Reserve Act You Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

li 1916. FEDERAL EESEH^E BULLETIN. 225 would not, therefore, under section 5202, as DISTRICT NO. 8. amended, have to take into account, in deter- Trustee, execiitpr, administrator, and registrar of stocks mining the total amount of your liability, and bonds: paper rediscounted with the Federal Reserve First National Bank, Mount Vernon, Ind. Bank. Central State National Bank, Memphis, Tenn, (2) There is no limitation in the law as to the total amount of rediscounts which a DISTRICT NO. 11. member bank may take from the Federal Re- Trustee, executor, administrator, and registrar of stocks serve Bank. There is, however, a provision in and bonds: section 13 of the Federal Reserve Act pro- First National Bank, Beaumont, Tex. viding that the aggregate of notes bearing the Trustee: signature or indorsement of any one person, First National Bank, Troup, Tex. corporation, etc., rediscounted by the Federal Reserve Bank for any one bank shall at Intradistrict Clearing System, no time exceed 10 per cent of the unimpaired capital and surplus of said bank. This clause Additions to and withdrawals from the intra- • of the Act contains an exception as to the district clearing system since the publication discount of bills of exchange, but no exception is made as to the discount of promissory notes. of lists in previous issues of the Bulletin are as If, therefore, any particular paper which follows: you present for rediscount to the Federal DISTRICT NO. 1. Withdrawals: Reserve Bank, either singly or added to the First Bridgeport National Bank, Bridgeport, Conn. paper of the same makers or indorsers which Danbury National Bank, Danbury, Conn. •tji.e Federal Reserve Bank has already redis- Greenwich National Bank, Greenwich, Conn. counted for you, amounts to a total of more than 10 per cent of the unimpaired capital and DISTRICT NO. 2. surplus of your bank, the Federal Reserve Additions: Bank, under the clause above quoted, has no Connecticut National Bank, Bridgeport, Conn, authority to rediscount. Danbury National Bank, Danbury, Conn. Greenwich National Bank, Greenwich, Conn, APRIL 17, 1916. National City Bank, Troy, N. Y. DISTRICT NO. 3. Fiduciary Powers. Withdrawal: Firat National Bank, Altoona, Pa. Applications from the following banks for DISTRICT No. 4. permission to act under section 11 (k) of the Withdrawal: Federal Reserve Act have been approved by Farmers National Bank, Arcanum, Ohio. the Board since the issue of the April Bulletin, DISTRICT NO. 5, as follows: Withdrawals: First National Bank, Oxford, N. 0. DISTRICT No. 1. First National Bank, Wilson, N. C. Registrar of stocks and bonds: Peoples National Bank, Charleston, S. C. Ansonia National Bank, Ansonia, Conn. Edisto National Bank, Orangeburg, S. C. National Union Bank, Kock Hill, S. C. DISTRICT NO. 3. DISTRICT No. 6. Trustee, executor, administrator, and registrar of stocks Addition: and bonds: Farmers National Bank, Shelbyville, Tenn. Union National Bank, Atlantic City, N. J. DISTRICT No. 8. Withdrawals: DISTRICT NO. 4. Trustee: First National Bank, Siloam Springs, Ark. Citizens National Bank, Sidney, Ohio. Lynnville National Bank, Lynville, Ind. Farmers National Bank, Mayfield, Ky, DISTRICT NO. 7. DISTRICT NO. 11. Trustee, executor, administrator, and registrar of stocks Withdrawals: and bonds: Calcasieu National Bank, Lake Charles, La. First National Bank, Clarence, Iowa. First National Bank, Alpine, Tex. First National Bank, Clyde, Tex. Farmers National Bank, Sheridan, Ind. 38288—16—4 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

226 FEDERAL KESEEVE BULEETIH. Mm 1, LAW DEPARTMENT. The following opinions of counsel have been also that the various stipulations contained authorized for publication by the Board since therein do not affect its negotiability. If drawn the last edition of the Bulletin: on the purchaser of goods by the seller of such goods, as certified in the margin of the bill, it Negotiability of Bills of Exchange. would when accepted become a trade accept- Negotiability of '& bill of exchange Is not affected by pro- ance within the definition fixed by the Federal visions which waive demand, notice, and protest; wMch Reserve Board in Regulation P, series of 1915, waive homestead exemption rights; and which provide for and would be eligible for rediscount by the the costs of collection and attorney's fees. Federal Reserve Bank of Atlanta at the rate APRIL 13, 1916. established for trade acceptances. SIR: The attached form of acceptance has Respectfully, been referred to this office for an opinion as to M. C. ELLIOTT, Counsel. whether it is in form a negotiable draft or bill To Hon. C. S. HAMLIN, of exchange. Governor Federal Reserve Board. The instrument in question is undoubtedly in the form of a bill of exchange and not a note. Maturity of Farm Land Loans. It is an unconditional order addressed by one person to another requiring the person to A national bank may discount or purchase a note secured by improved and unencumbered farm land, even though whom it is addressed to pay on demand or at a such note is payable more than five years after its date, fixed or determinable future time a sum certain provided it will mature within five years from the date on in money to order. (See sec. 126, Negotiable which is is acquired by such national bank. Instruments Law.) APRIL 8, 1916. The only question to be determined, there- SIR: The following question has been refore, is whether certain stipulations contained ferred to this office for an opinion: in the bill relating to the payment of fees, Can a national bank, under section 24 of the waiver of protest^ etc., render it nonnegotiable. Act, discount or purchase a note secured by Section 5, subsection 3, of the Negotiable improved and unencumbered farm land, which Instruments Law provides that: is payable more than five years after the date such note was made but which will mature "Negotiability is iiot affected by a provision within five years from the date of acquisition which waives the benefit of any law intended by a national bank ? for the advantage or protection of the obligor." Section 24 of the Federal Reserve Act pro- It is certain, therefore, that the waiver of vides in part: homestead and exemption rights does not Any national banking association not situdestroy the negotiability of the bill. ated in a central reserve city may make loans So, also, a provision to pay the costs of colsecured by improved and unencumbered farm lection and attorney's fees does not invalidate knd, situated within its Federal Reserve disthe instrument. (See Negotiable Instruments trict, but no such loan shall be made for Law, sec. 2, subsec. 5; First National Bank of a longer time than five years. Shawana v. Miller, 139 Wise, 126.) The fact In an opinion of this office published on page that the drawer and indorsers waive demand, 120 of the March, 1916, issue of the Federal notice, and protest does not in any way affect Reserve Bulletin, the conclusion was reached negotiability. (See Norton on Bills and Notes, that the power to "make loans" included the 4th ed., chap. 9, sec. 148 (b).) power to purchase or discount loans already It seems, therefore, not only that the attached made as well as to make such loans in the instrument is in form a bill of exchange but first instance. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1, 1916. FEDERAL RESERVE BULLETIN". 227 Prior to the passage of the Federal Reserve serve Bank under the terms of section 13 of the Federal Re- Act national banks were not permitted to serve Act. accept real estate as security for loans except APBIL 17, 1916. SIR: The attached, letter raises the question where this became necessary to prevent losses whether a valid assignment of an open book on debts previously contracted. It is generally account is rediscountable by a Federal Reserve understood that this class of loan was not Bank. authorized because of its nonliquid character. It appears that certain national banks located The purpose of section 24 seems clearly to have been to authorize a national bank to in- in Pennsylvania desiring to accommodate some vest a limited amount of its resources in farm of their customers, who are coal operators, loans, provided it invests no part of its funds in have purchased written assignments of the open any one loan for a longer period than five years. accounts due to such customers from various In this view the date of the note is immaterailroads. The question submitted is whether rial, in the opinion of this office, if the obligation matures within five years from the date such assignments can be discounted by the that the national bank makes the loan. Federal Reserve Bank of Cleveland. Respectfully, Section 13 of the Federal Reserve Act author- M. 0. ELLIOTT, Counsel. izes any Federal Reserve Bank to discount for To Hon. JOHN SKELTON WILLIAMS, its member banks "notes, drafts, and bills of ex- Comptroller of the Currency. change arising out of actual commercial transactions.77 The obligation in question is not a note, draft, or bill of exchange, and therefore Bills of Exchange Under Section 5200, Revised Statutes. does not come within the express terms of that An obligation in the form of a bill of exchange which ex- section. empts the drawer from liability is not a bill of exchange This omission was evidently not an oversight coming within the exception to the limitations of section on the part of Congress. An assignment in the 5200 of the Revised Statutes. form under consideration is not negotiable pa- MARCH 22, 1916. per and has none of the elements of negotiable SIR: The attached letter in substance raises paper. It does nothing more than grant to the the question whether a draft or Mil on which the assignee the rights which the coal operator has drawer is exempted from liability by a statement to the effect that it "is taken without lia- against the purchaser; that is, rights which are bility on part of drawer" is a bill of exchange, subject to ail the equities and offsets which the coming within the exception to the limitations purchaser or obligor may have against such coal of section 5200 of the Revised Statutes. operators. Furthermore, the assignee bank An obligation which is in the form of a bill of may be disbarred as against the original debtor exchange, but which, in fact, does not hold anyone but the acceptor liable, is, in substance, a by a bona fide payment by such debtor to the promissory note, and not a bill of exchange. coal operator without any notice whatever to It is, therefore, not entitled to the exemption ! the bank. afforded under the provisions of section 5200, These facts in themselves would seem to be because it is not a abill of exchange drawn in sufficient to indicate that the paper in question good faith against actually existing values." Respectfully, not only is not expressly authorized by the M. C. ELLIOTT, Counsel. Act, but also does not come within the intent To Hon. C. S. HAMLIN, or spirit of the Act. It is not bankable paper, Governor Federal Reserve Board. and should not, therefore, be considered as a proper discount for a Federal Reserve Bank. Respectfully, Rediscount of the Assignment of Open Accounts. M. C. ELLIOTT, Counsel. The assignment of an open account is not negotiable To Hon. C. S. HAMLIK, paper and is not eligible for rediscount.by a Federal Re- Governor Federal Reserve Board. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

228 FEDERAL RESERVE BULLETIN. MAY 1, 1916. GENERAL BUSINESS CONDITIONS. $57,825,000 on March 18, 1916, to $56,- 950,000 on April 15, 1916. General business and banking conditions are Exchanges of the Boston Clearing House described in reports made by Federal Reserve for the week ending April 15, 1916, were Agents for the 12 Federal Reserve Districts, $219,284,696 as compared with $177,808,372 as of approximately April 24, substantially for the corresponding week last year and $219,as follows: 789,796 for the week ending March 18, 1916. DISTRICT NO. 1—BOSTON. Building and engineering operations in New Business continues to improve, and a com- England from January 1 to April 12, 1916, parison of conditions to-day with those pre- amounted to $47,982,000, being a high record vailing a year ago shows that the improvement for many years. The nearest approach to in many cases has been extreme, although from these figures was in 1912 when operations for month to month it is not so noticeable. the similar period amounted to $45,860,000. Reports from various lines of trade do not Exports from the port of Boston for March, indicate that any slowing up of the demand is 1916, amounted to $11,506,025, a decrease of in sight and in practically every business the $290,669 as compared with February, 1916, present prosperity is expected to last for a and a decrease of $1,193,553 from March, 1915. good while to come, barring some unforeseen Imports for March, 1916, showed a very deterrent happening. In some lines the in- decided decrease from February, 1916, only creasing cost of raw materials and the unsettled totaling $21,451,229 in March, as compared labor conditions are causing considerable un- with $28,581,611 in February. Imports for easiness, but conditions, for the most part, March, 1915, were $18,794,312. are favorable, and manufacturers and mer- Receipts of the Boston Post Office for March, chants generally are making money. 1916, show an increase of $31,662, or about A\ The freight situation on the New England per cent, over March, 1915. Receipts for the railroads has greatly improved and unless the first 15 days of April, 1916, show an increase of lines again become overtaxed this should not $48,869, or about 14 per cent over the same cause much further inconvenience. period last year. There is no change in the money market. The Boston & Maine Railroad reports net Although the excess reserves of the Boston operating income, after taxes, for February, Clearing House banks show a very substantial 1916, as $884,693, as compared with $491,868 decrease from the high point of last fall, rates the corresponding month of 1915. The New remain low and money comparatively easy. York, New Haven & Hartford Railroad reports Call money is 3 per cent; commercial paper, 3 net operating income, after taxes, for Febto 3J per cent for short dates; 3 per cent up- ruary, 1916, as $1,198,373, as compared with ward for six months; 4 to 4J per cent for a $1,289,683 the same month last year. year; town notes, fall maturities, 2f to 3 per Manufacturers of boots and shoes report cent; bankers7 acceptances, 90 days, 2 per exceptionally good business at advancing cent upward. prices, with fall orders coming in well. The Loans and discounts of the Boston Clearing high and increasing cost of leather is forcing House banks show an increase of $1,684,000 manufacturers to advance their prices, and over a month ago, while demand deposits show many retailers anticipating still higher prices a decrease of $2,343,000 in the same time. are placing their fall orders early. The amount "Due to other banks" on April Cotton mills are sold far enough ahead to 15, 1916, was $144,477,000, an increase of insure running at capacity for many months $6,639,000 over last month. The excess re- to come. In many fabrics this is a betweenserve of these banks has decreased from seasons period, and buyers, therefore, are not in Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MAY 1, 1916. FEDERAL RESERVE BULLETIN. 229 the market to so large an extent as last month. on March 31 were 9,331,001 tons, against Mills, however, are so amply provided with 4,225,749 tons a year ago. orders that the fluctuations in the volume of Leather.—Not many military orders now, but buying from week to week receive little atten- a heavy domestic demand. Prices are high tion. Lack of certain classes of skilled labor and will probably continue so for some time. and unrest among employees is receiving more Collections are good. consideration than additional orders. Boots and sTioes.—Prices advancing and busi- Conditions in the woolen and worsted indus- ness brisk. try remain about the same. There is a good Prints and colored goods.—In strong demand volume of buying and prices are firm. Mills and prices advancing. have all the business they can take care of and Lumber.—Trade improving; prices inare running as full as possible, in most cases creasing. being sold ahead well into the fall. Building and materials.—Business less ac- The market for securities remains quiet, with- tive; larger jobs about completed and new out any particular features, due to a large ex- work does not offer sufficient margin of profit. tent to the unsettled international situation. Department stores.—Larger sales of better grade wearing apparel. More money seen in DISTRICT NO. 2—NEW YORK. circulation. A late spring is delaying the opening of navi- Jewelry.—Sales of diamonds five times larger gation on the Great Lakes and heavy snowfalls than for several months past; pearls in good have held up plowing and farm work. demand. Large silver pieces called for not- Shipping interests on the Lakes foresee an withstanding advance in price of the metal. unusually heavy movement of ore, coal, grain, Platinum lines paralyzed by the high price of and general freight, and are prepared for a busy the metal. The clock industry worked to season. capacity. It is proposed to establish at New York regu- Strikes have occurred among jewelry workers lar auctions of vessels similar to those held at and railroad construction employees. Silk English and continental ports. The first ship weavers in Paterson, N. J., demanded and were auction sales were made here on April 10. granted a 9-hour instead of a 10-hour work- The volume of goods produced and sold last ing day. month was probably greater than in any March New York Clearing House members on April on record. The business activity and the pre- 15, 1916, reported loans, etc., $3,378,106,000; vailing high prices are being reflected in earn- deposits, $3,551,993,000; and excess reserves, ings and cash balances shown in published $102,744,000. Since March 4, 1916, loans, statements of corporations. etc., increased $15,927,000, deposits decreased Country merchants are reported to be buying $23,235,000. and excess reserves demore goods than at any time since 1907. In creased $34,776,000. Excess reserves were view of the extraordinary conditions and prices $224,122,990 on September 11 last. not a few are inclined to question the wisdom New York City offered on April 19, of heavy commitments in these times. $40,000,000 41 per cent corporate stock pay- Certain concerns in various lines of business able April 1, 1966, and $15,000,000 bearing have been questioned on conditions and have the same rate of interest but maturing serially reported directly as follows: from April 1, 1917, to April 1,1931. The aver- Steel.—Practically sold up with orders for age price realized on the 50-year stock was six months ahead. Deliveries are difficult 102.618 and for the 15-year issues 101.432. owing to transportation conditions. Unfilled The Canadian Government loan of orders of the United States Steel Corporation $75,000,000, maturing in 5, 10, and 15 years, Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

280 3EDEBAL BESEBVE BIIIXETIH. MAY 1,1916. yielding 5.37J to 5£- per cent, was oversub- According to the report of the Commissionscribed in New York and allotted on 'March. 24. ers of Navigation, exports at this port during Silver bullion quoted at 64$ cents represents the month of March showed an approximate an advance of 18•§• cents from the low price of value of $21,000,000, an. increase of about 1915. The average price last year was 49.69 $14,000,000 over March, 1915. The value of cents, and in 1914, 54.81 cents. the imports was about $9,600,000, compared Sterling exchange has been steady at 4.76 to with $7,600,000 for the corresponding month 4.76$. Paris checks gradually reacted froin of last year. The importation of wool and cane 5.87J, and on April 14 dropped to 6.08$, but sugar has increased greatly. Sugar worth recovered 12 points within the next few days. $3,907,584 was imported in March, which rep- German sight bills declined to 71J on March resents a gain of $912,052 over the same period 21, but have since strengthened to 74$. Hol- of 1915. Wool increased during the same land exchange continued at a premium of 5 to period $838,440 to $1,168,138. 6 per cent. Italian bills since March 1 have During the first three months of 1916, meradvanced from 6.71| to 6.48. chandise valued at about $46,000,000 was The high rate for call money in March was shipped abroad from Philadelphia, being an 2$ per cent, the low rate If per cent, and re- increase of $22,000,000 over the first quarter newals 2 per cent. Time loans on collateral of 1915. A falling off is noted in the coastwise were slightly firmer, with a range from 2$ to 4 trade. Heavy shipments of war supplies, flour, per cent. No changes occurred in rates for and refined sugar were made. bankers' acceptances, viz, 2 to 2f per cent. Building operations,—In the smaller cities Commercial paper rates were stronger at 3 to and towns, new building has not been very ex- 3$ per cent. During the latter part of the tensive, but in the larger cities, the reverse is month sales at rates below 3 per cent prac~. generally the case, and a good deal of work is tically ceased. contemplated, especially in the erection of homes and houses. DISTRICT NO. 3—PHILADELPHIA. Carpets, rugs, etc.—Carpet wool has gone up The outstanding feature of the business sit- 100 per cent since last year, and local concerns uation in this district is the rise in prices which have sharply advanced their prices of stock continues in most lines. Trade is brisk, and goods. The plush business is thriving. energy is concentrated more on methods of Cement,—During the summer and latter production and questions of delivery than months of 1915 the condition of the cement inon discussions of prices. Manufacturing plants dustry was very satisfactory. Indications are are working to capacity, and many have suffi- more favorable this spring than last year. Concient orders on hand to keep busy for con- sumers buy very little during the winter-months, siderable periods. The emergency orders are but the past winter has been better than for many bringing profit to the small shops, as the over- years. Car shortage has interfered with shipflow work has been parceled out to a large ments, but has lately improved. Contracts for number of them. Farmers particularly are 1916 delivery are very good and at better prices feeling the scarcity of labor. than last year. The mills are running at about Some of the railroad shops have been operat- 80 per cent capacity, due not to lack of orders, ing on short time because of inability to obtain but to scarcity of labor. The price of labor is raw materials. There is a good demand for going up steadily, and if it does not advance equipment. The loaded freight car movement above the point anticipated the outlook will be of the largest railroad in the district shows an very good for profitable business. Unfavorable increase of 33 per cent during the first 14 days weather conditions have greatly hampered of April over the same month of 1915. \ work during the past six weeks, Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FEDERAL RESEBVB BULJLETXH. 211 Chemicals.—Because of the dyestuff scarcity Leather and shoes.—There is a strong demand manufacturers have been compelled to with- for shoes; jobbers and wholesalers find diffidraw some lines. Experiments to manufacture culty in keeping up stocks, and prices incline colors coijttinue with some success. The de- upward. There is a great scarcity of tanning mand for paints, oils, and varnishes in general materials and dyes. Glazed kid is very active, far exceeds the production, and plants are and the demand is close to the supply. Shipworking to capacity trying to keep up with ping conditions retard the importation of skins. orders. Ingredients of paints have advanced Lumber and building materials.—Lumber tremendously. Glass has been in good demand dealers report conditions better than for a numwith high prices. Drugs continue high. ber of years. Orders are large and prices are $5 Goal.—-The shortage of cars continues to beand $6 per thousand feet higher than a year ago. an obstacle in the way of transportation. The Building materials are advancing in price. business,.however, is normal. Paper.—Sometime ago many manufacturers Cotton and cotton goods.—Conditions in the withdrew all quotations and have since been cotton yarn market continue to show an active making their prices from day to day only, demand, with hardening of prices. Most niills owing to difficulty and uncertainty in securing making cotton goods are well sold up, and or- chemicals, dyes, and other items heretofore obders taken are naturally for future delivery. tained abroad, and the tremendous price in- Dry goods, notions, millinery.—Wholesalers creases resulting therefrom. Paper mills have and jobbers report a very satisfactory season, business enough on their books to keep them with an increase of business over the previous going for several months, and from special reyear. Sales of millinery are well up to expecta- ports, we learn that the demand for paper is the tions, and the outlook for the future is con- biggest ever known. The selling price seems sidered extremely encouraging. to be no longer based upon the cost of produc- Hardware and electrical supplies.—-Manufac-tion, and is influenced almost entirely by the turers and jobbers report increased sales. The demand. In a way, paper is a barometer of hardware trade generally has felt the effects of general conditions, for the amount of paper the prosperity wave for some months, and re- used is governed to a large extent by the amount ports show no decrease in the world demand for of advertising in newspapers and magazines, hardware, and especially for mill supplies, and by the number of packages sent out by the The situation in electrical supplies is decidedly «/ XT O »/ stores. The lack of sufficient raw materials is favorable, notably in those Hues used in connecrapidly becoming a serious factor, and for this tion with building. reason the outlook is only a guess. Collections Iron and steel.—The domestic steel consumpare very good, as customers are anxious to.take tion is a very important factor in the present advantage of discounts. highly satisfactory condition of this industry. Silk.—The silk industry is working to the Not only railroads, but other consumers have limit of capacity. Fall business is being taken come into the market and placed orders for at high prices. Western interests are reported large tonnages of steel. The placing of large to be placing large orders on the assumption orders for rails to be delivered in 1917 is a nota- that prices may go higher .rather than lower. ble feature of the market. Orders for cars and Many mills have made additions to their plants. locomotives during the first quarter aggregate Textiles.—Conditions in hosiery and under- 766 and 540 per cent more than for the first wear show little change. There has been some quarter of 1915. There is a more conservative falling off in retail buying. Mills have caught spirit shown in prices for steel products, and it up somewhat on deliveries, and am generally is believed that the end has come to headlong sold up to the limit. There are predictions of advances. Pig iron is very strong and a tiigher a slump, due to abnormal purchasing of goods. market is expected, Labor is restless, but tiie situation is not acute. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

282 FEDERAL BESBBVE BULLETIN. MAT!, 1916. purchases by the warring is effective the beginning of May, and is the first nations have increased tobacco prices, and con- change in 15 years. tinued buying tends toward further increases. If there is a new feature in the iron and steel Growers report that on account of unfavorable situation, it is the growing feeling among some weather conditions very few seed beds have of the largest concerns that output and shipbeen made, and there will be little planting ments of finished products have probably done before early June, which is late. reached the maximum on this movement. Wearing, apparel.—The demand for all classes This feeling grows out of the fact that there is of wearing apparel is well maintained, and ex- a shortage of raw and semifinished materials. cept for the difficulty in obtaining some krpds For instance, some nut and bolt factories are of fabrics, the outlook is very bright, especially now operating only about 70 per cent because as the probability of serious labor troubles is of inability to obtain bars from which bolts becoming more remote. Competent help is and nuts are made. An inadequate supply of hard to secure. sheets and plates reduces the output of shops Wool and woolen goods.—There has been a and factories using semifinished products. lull in the buying of wool and woolen goods. Two other factors enter into the feeling that Manufacturers are expected to become more output has reached its peak. The first is a liberal buyers as soon as present supplies are continued shortage of shipping facilities, and absorbed. the second is the shortage of labor. News- The money market continues easy and fea- papers are carrying columns of advertising tureless. Rates are quoted at 3 to 3-J per cent which offer positions at good wages for skilled for call money, 3 to 4 per cent for time loans, and unskilled mechanics. Railroads claim and 3 to 3J per cent for choice commercial pa- that they have experienced no shortage of per. Clearings continue to run high through- men for train service, but are short of shopmen out the entire district. and particularly of common labor. Our member banks report that the latter Strenuous efforts are being made to open the part of 1915 was profitable to most of their navigation season on the lakes. It has already customers, and they are now doing very well. definitely begun on the lower half of the lakes. The smaller concerns, however, apparently did Vesselmen believe the Soo will not be navigable not meet with the phenomenal gains generally before April 25, so navigation, will not have reported. ' been in full swing until that date. The estimated volume of ore shipments for this season DISTRICT.;NO. 4~~CLEVELAND, is between 53,000,000 and *55,000,000 tons, * There has been no substantial slowing down which is several million tons in excess of the in the business prosperity of district No. 4. largest year. The earnings of steel companies and concerns The production of coal continues large, in kindred lines are continuing at an unprece- although prices have not been quite so firm dented rate. Official figures and unofficial owing to consumers now using stocks accumuestimates from leading corporations in this lated in anticipation of a miners7 strike which, district, if continued during the balance of the up to April 22, was thought to have been year, will assure profits which certainly will averted. stand as the apex of industrial earnings for Plate and window glass has now reached a new some years to come. A straw showing the maximum output. The increased output finds enormous volume of domestic business now a ready market at the highest price ever quoted. being booked is the order of the Pennsylvania The oil industry is active. Demands for Railroad Co. for the largest quantity of rails drilling are beyond the supply of oil well mateever placed at one time. The announced ad- rials. Many producers who have been holding vance rate of $5 a ton in the price of steel rails their oil are taking advantage of the present Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MAI 1, 1916. FEDERAL RESERVE BULLETIN, 238 price and are selling, which has resulted in the Kecord figures are being made in clearings. accumulation of a large surplus of loanable Money rates remain unchanged, and banks are funds in banks located in petroleum-producing plentifully supplied with loanable funds. Cleardistricts. Reports from the garment industry- ing figures in the same cities for the first 15 show an unexcelled season. Conditions in the days in April are as follows: mercantile trade are satisfactory. Post-office receipts in the six largest cities of Apr. 1-15, Apr. 1-15, Percentthe district for the month of March, 1916, 1918. 1915. Increase. age of increase. show an increase of 11.1 per cent, the totals for the month being $1,273,237, as against Cincinnati $73,099,600.00 $58i,, 785,400.00 $14:,, 314,200.00 24.3 Cleveland 94,889,457.40 68,209,928.04 26,679,529.36 39.1 $1,146,178.87 for the same month last year. Columbus........ 23,183,800.00 14,912,200.00 8,271,600.00 55.5 Pittsburgh 142,665,960.111.1133.,489,693.82 29,176,266.29 25.7 Collections in ail lines are reported good, Toledo 19,840,915.83 13,713,337.00 6,127.578.83 44.7 Youngstown. 9,712,252.69 3,359,294.49 6,352,958.20 189.1 complaints being fewer this month. Payments, however, are not being made in many Total 363,391,986.03 272,469,853.35 90,922,132.68 33.4 cases at to-day's prices, as many concerns are The ^wheat crop in the district looks good. still working on material sold at prices lower A great deal of tobacco probably will be put in. than those now prevailing. As these contracts The price of this commodity is advancing expire and the new rates obtain the less will be rapidly. ^he purchasing power of the dollar, which will be immediately reflected in credit. Therefore DISTRICT NO. 5—RICHMOND. the effect of the higher level of' values upon col- Business continues to show improvement, lection and credit-can not be determined yet. jobbers reporting a fair volume of sales and There were in March, 1916,; 126 failures in good collections. Agricultural conditions on this district, with liabilities of $856,829, against the whole are favorable. In some trucking 97 failures for the same month last year,•with sections along the coast, they are below normal, liabilities of $1,272,900. due to low prices of potatoes, but prospects There is a pressing demand in industrial dis- are considered brighter for the coming crops. tricts for more and better housing facilities. Farmers have done well during the past season The movement to supply this demand is in and are in better financial condition than for evidence but is being retarded by the high cost some time past. of building material as well as of labor. In Bad weather delayed crop preparations for the six largest cities of the district there were a time, but on the whole lands are in good fewer building permits issued in March, 1916, condition for the next crops. There has been than during the same month in 1915. Since more diversification than before. Food sup- May, 1915, this is the first report that did not plies have been more varied and abundant show an increase in the number of permits than heretofore, more attention being given to issued over the same month of the previous the care of live stock. The present cotton year. The figures are given below: crop was Economically raised. Prices have been good and this has contributed materially Nu m m it b s e i r s s o u f e p d. e r- , Valuation. c P e e n r t to improved conditions and the prosperity of Increase of inor crease the agricultural sections. The tobacco crop March, March, March, March, decrease. or de- 1916. 1915. 1916. 1915. crease. was also raised without unusual costs, but there has been some complaint as to price. Cincinnati 1,466 1,652 $984,500 $1,356,124 i 371,624 127.4 Cleveland..-.. 1,123 1,483 1,838,465 4,022,035 i 2,183,570 154.3 Owing to the scarcity and high prices of fer- Columbus. 340 335 868,935 519,200 349,735 67.3 Pittsburgh.... 332 438 1,767,612 1.006,997 760,615 75.5 tilizing materials, a reduction in volume is ex- Toledo .... 340 288 1,022,495 763,258 259,237 33.9 Youngstown.. 100 90 176,313 173,590 2,723 1.5 pected in the fertilizer trade. Manufacturers Total.... 3,701 4,286 6,658,320 7,841,204 i 1,182,884 U5.1 are doing well, and on the whole anticipate a satisfactory season. 1 Decrease. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

284 tEDEEAL BESERVE BULLETIN. MAT 1.1916, Conditions in the cotton-spinning industry, The late frost did some damage to the early wMch have been seriously depressed for several fruit crops of the South, but with the favorable years, show a marked improvement. Many of weather of the past few weeks, all farm work is the mills which have failed to earn enough to well advanced. A good deal of planting has take care of even the wear and tear on their b&en done in the lower Mississippi Valley, but in plants are now finding a ready market for their lower Alabama a good deal of land will go into goods at satisfactory prices. This increased corn, oats, and potatoes. Georgia fertilizerdemand has developed both in Europe and tag sales show an increase over last year and the South American trade, but is hampered by the area in cotton and corn will be large. scarcity of freight room. The supply of loanable funds in the banks Men in the timber and coal business in the remains at high level and is being steadily auginterior report satisfactory conditions and mented, earnings. West Virginia reports the location Interest rates are low, first-class commercial of a new and extensive steel plant and a new paper being in demand. Money being easy in glass plant. this district the cotton holding situation is still The lumber trade has continued to improve strong, there being no disposition among the from its recent depression. Jobbers' stocks are banks to force the farmers and merchants to limited, and the mills are now moving a fair dispose of their cotton now stored in the portion of their accumulated stocks at improved warehouses. prices. This has been interfered with to some extent by congestion in the railroad traffic, par- DISTRICT NO. 7—CHICAGO. ticularly in New England and at the seaports. The business activity previously reported One point in the district reports 15,000 bales continues to manifest itself without evidence of of cotton held in the county, which if sold strain upon the financial structure. Banking would furnish more money than could be prof- funds seeking legitimate investment are in exitably used. cess of requirements, but there is more discrimi- Investors, even in the smaller cities, are re- nation on the part of the paper-buying banks, ported to be looking for safe short-time invest- with the smaller names paying a premium over ments, but not venturing far as to the future. the general minimum of 3 per cent, which has Banks in large cities are offering money at low existed for some time. While there does not rates, resulting in decreased demands on the seem to be any lack of money in this district, local banks. This has created an abundant some authorities are looking for better rates supply of funds, resulting in decreased earnings within the next few months. Banks in agrifor the local banks. cultural communities find this a dull season, as the farmer is engaged in spring work and can DISTRICT NO. 6—ATLANTA. not give his attention to marketing operations, General conditions in the Sixth District since Bond houses report a strong demand for our April report are unchanged to any great high-class municipal securities, and public-servextent and the outlook for the future continues ice issues are popular, with railroad and into be favorable. dustrial bonds receiving some attention from Sugar, rice, and lumber are in active demand. investors. The present outlook for this line is There is a gradual selling of the cotton crop, satisfactory, with the demand frequently in which influences all lines of business endeavor. excess of the supply. Manufacturers are working full time and many Bankers, manufacturers, and merchants are are behind on orders. The transportation generally united in their favorable views on the problem continues a handicap, though deliv- business existing and in prospect, but some call eries are now effected somewhat more promptly, attention to the danger from heavy purchases Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FEDEBAL BESBEVB BULLETIN. 285 at high prices, as such commitments are some- pects for the future. While there is no abnorwhat speculative, their successful termination mal demand for cement, a reasonably satisdepending upon uncertain and uncontrollable factory prospect is evidenced and collections external conditions. are said to be good. Cold weather delayed spring work in this sec- Coal.—Unsettled conditions prevail in coal tion about two weeks, but present reports indi- owing to the poor demand caused by the supcate favorable progress. The condition of fall ply accumulated in anticipation of the April 1 wheat is unsatisfactory in many localities, and strike, which did not materialize. Consumers, this has resulted in some additional acreage of however, are to some extent contracting for oats. Illinois reports considerable damage to their requirements for the ensuing year at what winter wheat, although some improvement in are said to be fair prices. the situation has been noted since warm Dry goods.—Wholesalers still enjoy a heavy weather. Corn and oats are going into the demand and are booking considerable future plowed-up wheat land. Indiana is in a similar business. Certain lines of merchandise are position, and the decreased wheat prospects difficult to obtain, and a feeling exists that mean increased acreage for oats and corn. In some of the purchases for fall delivery are of Iowa fall grain suffered in some sections, but more or less speculative character. The largest the general condition of the soil is excellent, and business is said to come from the manufacturing the spring planting of corn and oats is making centers where labor is well eniploiz-ed at ingood progress. A larger acreage than usual of creasing wages. The consumer, according to oats seems in prospect. Michigan looks for- one authority, is purchasing a better grade of ward to a good fruit crop, and other crops are merchandise than heretofore, and up to date reported as satisfactory for this season of the no unfavorable comment with regard to collecyear. Wisconsin has an excellent outlook for tions has been noted. winter wheat in certain localities, but all of the Furniture.—Grand Rapids and Kenosha facground assigned to this crop was not so fortu- tories apparently are enjoying a satisfactory nate and some plowing under is probable, par- volume of business with some difficulty reported ticularly in the southwestern part of the State. in connection with raw materials and railroad Agricultural implements.—This line of in- shipping facilities, dustry is handicapped by the advances in ma- The crop prospects have had considerable terial and the difficulty in securing deliveries. effect upon the grain markets during the past Sales of acceptable volume are reported, a,nd 30 days and scarcity of railroad equipment is the manufacturers anticipate general improving said to have interfered considerably with the conditions™ Collateral sources corroborate the handling of grain.. Another factor in the sitactivity in the implement business. uation is the prospect of an immense amount - Automobiles,—No decrease in the demand of Canadian wheat moving east on the opening lias put in an appearance and the manufac- of navigation in the Great Lakes. turers claim that- their product is sold up for In the city of Chicago the grocery business several months ahead with difficulty in secur- is said to be of satisfactory volume, but throughing materials with which to produce the ma- out the smaller centers the retailers are not chines. purchasing to any extent although the orders Building and building material.—Construc- for future delivery are better than a year ago. tion throughout this district is quite active, A satisfactory trade is reported in the territory particularly in the manufacturing centers, and tributary to Des Homes, with collections unthis will probably continue as long as the usually good. underlying causes operate. Business is re- Hardware.—The higher prices necessitated ported as considerably greater in brick than by the difficulty in procuring steel products has last year at the same season, with good pros- not to date decreased sales.. The retailers and Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

286 FEDERAL RESERVE BULLETIN. MAY 1,191$. the public appear to be taking an increased activity in automobile supplies, groceries, quantity of merchandise, but the collections sporting goods> and textiles. are only fair. The paper industry is having difficulty in Leather,—The advances in hides and tanning procuring raw material, prices have gone up, materials caused by their scarcity indicate a and at the present time there is a tendency considerable demand, which is confirmed by toward inactivity, owing to the disposition of the reports from manufacturers in this line, the buyers to take on only limited supplies. who also advise they are finding it increasingly Steel and wire goods, which enter into the difficult to get sufficient labor. There is good construction of pianos, have considerably inprospect for a continuance of this activity. creased the expense of the finished article. Sales of leather belting are said to show con- Sales are showing some hesitancy at this time siderable increase over last year. and collections are fair. Liquor.—Tax payments for the fiscal year The steel companies in this territory are are said to be at the rate of 34,000,000 to accepting some orders for 1917 delivery. The 35,000,000 gallons, with a prospective produc- present demand continues in excess of capacity, tion of 1916 Kentucky whisky at between and prices have been fully maintained. 20,000,000 and 22,000,000 gallons. Prices are Watches.—Watch factories continue to enjoy reported firmer and a number of distilleries are the increased activity reported last month, <and working capacity, due to alcohol contracts. there is good prospect for a continuation of this The situation with the breweries appears un- condition for some time to come. April is exchanged, although there is some slight prospect pected to show a very satisfactory increase in of improvement. business over the same month a year ago. Live stock.—The packing industry reports an Wool and woolens.—The situation in the wool exceptionally strong foreign demand, with an market is quite similar to last month, with mills increased scarcity of bottoms for export. By- well covered on raw material. Supplies, howproducts^ such as wool, hides, glue, and fer- ever, are not excessive and the activity in this tilizer, a-j*e in excellent demand, which would line is expected to bring about an increased der show that the manufacturers using these prod- mand within the next few months. Manufacucts are fully employed. Live-stock prices are turers are feeling the shortage of raw materials holding firm, and the indications are that the and dyestuffs without prospect for immediate supply of live stock throughout this district is relief. Collections are said to be good. not as large as usual. An interesting comment Clearings in Chicago for the first 20 days of is to the effect that hogs fed on Iowa soft corn April were $1,049,000,000, being $178,000,000 have been figured to yield as high as $1 per more than for the corresponding 20 days in bushel for the corn fed, based on present selling April, 1915. Clearings reported by 18 cities in price of hogs and the increased weight per the district outside of Chicago amounted to bushel of corn fed. $220,000,000 for the first 15 days of April, 1916, The improvement formerly reported in lum- as compared with $164,000,000 for the first 15 ber seems to continue, and there has been a days of April, 1915, and $225,000,000 for the strong demand for all kinds of lumber, which first 15 days of March, 1916. Deposits in the has firmed up the prices, with advances in val- eight Central Reserve City member banks in ues recorded in some of the products. Collec Chicago were $645,000,000 on April 18, 1916, tions are not yet satisfactory, but some im- and loans were $434,000,000. The deposits provement is noted. show a decrease during the past month of The local mail-order houses show increases $3,000,000, and the loans a decrease of in their sales through this district, with marked $4,000,000. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MAT 1, 1916. FEDERAL RESERVE BULLETIN. 237 DISTRICT NO. 8—ST. LOUIS. than other branches of industry. In all in- This district is in excellent business con- quiries merchants were requested to give us dition. Producers and manufacturers are op- their opinions of business and agricultural conerating to their capacity, shipments of mer- ditions. The answers were almost without exchandise show large increases, and the buying ception optimistic. Comments such as these power of the general public has increased. appear in the reports: This bank has obtained reports' from a St. Louis. Business and agricultural condilarge number of wholesale firms located in nine tions both very good. Business and agriculof the principal cities in this district. The list tural conditions are very favorable. Retail comprises wholesale and jobbing firms of the business appears to be active. Reports rehighest rating, who de^l in the necessities of ceived from our traveling men are most life. Reports from these companies covering encouraging. We think business conditions the first quarter of 1916 have been care- are considerably better than they were in the fully analyzed. Business for the first three years mentioned. months of 1916 was compared to the aver- Memphis, Tenn. Planting delayed on acage of these three months for 1915, 1914, count of bad weather. Conditions very good. and 1913. It was deemed essential to make Good, and splendid prospects for its continua comparison with the approximate normal of ance. three years, instead of any one year, thus elimi- Louisville, Ky. Business and agricultural nating at least to a degree temporary or other conditions good. Conditions fair. Western depression or expansion. Kentucky affected by tobacco situation. From, an examination of the reports it ap- Paducah, Ky. Only fair. pears that these firms show an average increase Evansville, Ind. Generally good. in shipments of 16 per cent for the period Little - Rock. On the whole business and noted. The volume of unfilled orders on agricultural conditions are as good as we have hand April 1 was 26 per cent larger than the ever had in this State. Business conditions three-year average. Their collections received are much better than last year. Agricultural during this same period were 10 per cent above conditions good up to the present, but cotton the average collections of these three months planting retarded account of late season. for 1915, 1914, and 1913, and the amount of Fort Smith, Ark. Business very good. past-due accounts on hand April 1 approxi- Healthiest business conditions for years. Agrimately 15 per cent smaller than the average culture not sufficiently advanced to warrant for April 1 of the three previous years. The prediction. present prosperity of the district is indicated Springfield, Mo. Business hampered only by by the increase in shipments and by an almost failure of mills to deliver. Agricultural condicorresponding increase in collections, the com- tions very favorable. plement of which is a smaller volume of past- The total of failures for the first three months due accounts. The faith in the future is indi- of 1916 as compared to the same period of 1915 cated by the marked increase in orders for show a marked decrease both in number of future delivery. failures and total of liabilities, while comparing Only four of all the companies reporting 1916 to 1914 the number of failures is approxishowed a decrease in shipments for the first mately the same, but the total liabilities of 1916 quarter of 1916 as compared to the average of is only a little more than half that of 1914. the same months for the three previous years, State officers who have charge of issuing and this loss was so slight as to be of no impor- licenses for automobiles in this district have tance. It appears that the grocery and gro- furnished figures from which a comparison of cery commission business show smaller gains the number of licensed automobiles in opera- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

238 FEDEBAL BESEBVE BULLETIN. MAY 1,1916. tion April 1 for 1914, 1915, and 1916 has been follows: "This year bids fair to be the largest compiled. From these figures it appears that of any we have yet had." the number of automobiles in operation on The egg market in St. Louis is active. Cur- April 1 has more than doubled in the two years rent prices are approximately 19J^ cents as from April 1, 1914, to April 1, 1916, and this compared to 18J^ cents a year ago. Stocks in would seem to indicate prosperity in this and storage were of course exhausted in March, allied industries. and while the supply of eggs is normal for this From reports it would seem that agricultural season of the year, the demand for storage purconditions are in the main favorable. Cotton poses seems to have resulted in the increase in planting in the southern parts of the district price. has been somewhat retarded by the late spring The somewhat late spring has retarded the and the wheat crop in the central portions of production of truck-farm products. Homethe district has been damaged to a considerable grown fresh vegetables are just beginning to extent. Winter wheat acreage in this district appear on the market. has been reported to be smaller than in 1915 or There has been little change in banking con- 1914 and estimates of condition as of April 1 ditions since the last report. Indications are, confirm previous reports of damage to this however, that excess reserves are not as large crop. as they were 30 days ago, and this should in course of time have its effect on rates for discount. There was a tendency noted a month Condition of wheat I Apr. 1. ago for higher rates, but it can not be said that Dec. 1, 1915. they have gone up in any marked degree. 10-year 1916 1915 average. Commercial paper is still quoted at 3 to 3^ per cent and the rate for commercial loans in the Arkansas... Illinois 90 large cities is still approximately 4J per cent. Indiana Kentucky.. The bond market does not seem to be as active Mississippi. Missouri as it was a month or six weeks ago. It seems Tennessee.. probable that anxiety due to possible complications with foreign Governments may have its This report shows what appears to be serious effect on the market in general. damage to the wheat in the large wheat-pro- Below is a statement of the clearings of the ducing States of this district. Estimates of principal centers in this district for March, 1916, final production based on reports of condition compared to March, 1915, and for the first at this time must not, however, be considered as quarter of 1916 as compared to the first quarter necessarily conclusive. of 1915, with the percentage of increase or The cotton acreage in the southern parts of decrease for each city. The increases are this district is larger than last year and the favsubstantial in every case except one and this orable conditions should produce correspondis so slight &s to be of no significance. ingly large crops. Merchants, however, are March clearings. making an earnest effort to persuade southern planters to continue the diversification of crops Per cent or to plant at least enough foodstuffs and grain 1916 1915 incr o e r ase to supply the needs of their respective com- decrease. munities. Reports from the Arkansas straw- Evansville.. $8,350,877 $5,255,606 58.9 berry district are favorable. It is expected S P t a . d L u o c u a i h s . . . . - . 40 3 7 , , 5 9 2 8 4 0 , , 5 6 6 9 2 6 33 2 6 , , 2 4 3 2 8 4 , , 9 8 9 4 7 3 21 8 . . 3 8 that the crop will move to market the latter L M o e u m is p v h il i l s e .. . . . 3 8 3 0 , , 6 3 1 1 0 4 , , 7 3 9 4 8 1 3 5 4 4 , , 4 1 1 1 0 2, , 8 6 5 0 0 5 - 48 2 .4 .3 part of April or early in May. A report from Little Rock. 11,104,781 9,155,897 21.3 strawberry producers in Kentucky reads as Total. 544,886,055 442,598,798 23.1 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1, 1916. FEDERAL BESEEVE BTJLEETIlSr. 239 Cleanmgs forfirst quarter^-January, February, and March. being reseeded with marquis wheat. Over the district as a whole a considerable amount of Per cent wheat will be disked in on the stubble, and 1916 1915 incr o e r ase such planting will require favorable weather to decrease. produce the best yield. Farmers are rushing Evansville .. $23,801,346 $14,731,482 61.6 their spring operations as fast as the fields dry Paduean... 11,247,137 10,176,855 10.5 St. Louis...... .... . . . 1,194,236,437 988,433,173 20.8 up sufficiently to permit spring work, and Louisville. 245,131,432 165,522,152 48.1 MempMs.... 107,673,968 99,917,427 7.8 have been buying the light type of tractors LittleBoek 31,993,786 27,527,823 16.2 freely in an effort to increase the amount of Total 1,614,084,106 1,306,308,912 23.5 spring plowing, and overcome the handicap of. shortage of fall work last year and the late In March, 1916, this bank cleared 204,922 season. items, or a total of $90,667,565.72, the largest Moisture conditions over the district are clearings both in number of items and amount excellent. Floods have done some damage in cleared of any month since the bank has been isolated localities and will hurt spring operain operation, and shows a really important tions on a considerable amount of low land. gain as compared to the figures of March, 1915, Moisture in the ground, however, is sufficient which were: Number of items, 154,630; total to give the crop a good start. amount, $51,190,674.05. The wholesale and retail trade are both prosperous. Wholesale trade is showing an DISTRICT NO 9—MINNEAPOLIS. increased volume of business over a year ago, Interest is centered upon early spring conin the face of advancing prices and some difditions to the exclusion of practically all other ficulty in obtaining deliveries from eastern developments in business. It is conceded that manufacturers. Collections have been active. the grain territory, which embraces two-thirds Trade at local points is brisk, and is improving of this district, will show a reduction in wheat as the roads dry up. acreage for 1916, at present estimated at 10 Industrial conditions are excellent over the per cent, due to the shortage of fall plowing entire district. Labor is fully employed at last year and the lateness of the season this good wages, and the production of all manufacyear. Planting will be two weeks late, but turing concerns, if maintained, will create new this is not regarded as serious a disadvantage records for 1916. as the fact that the lateness of the season is The iron mines of northern Minnesota will cutting down the amount of spring plowing produce heavily, and advance estimates are that would otherwise have been done. that 40,000,000 tons of ore will be shipped down Seeding is general in central South Dakota the Lakes during the season. This will be and southern Minnesota, and is in progress at considerably in excess of previous years. other points. With favorable weather a good Similar conditions prevail in the copper discrop is looked for, even if planting is not comtricts of northern Michigan, the iron districts, pleted over the territory as a whole before the and the copper districts of Montana. first week in May. Construction is responding to the favorable It is pointed out that while the seed was in conditions in business, and a very large amount the ground by mid-April last year, the plantof building is in progress. ing was followed by many weeks of cold, raw weather, and that the seed was slow in germi- DISTRICT NO. 10—KANSAS CITY. nating, and the crop made no substantial During the past month this district has progress until toward June 1. experienced an unusual variety of weather Damage has been done to winter wheat in conditions. Central Kansas reports not only Montana, and a proportion of the acreage is a maximum temperature as high as the pre- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

240 FEDERAL RESERVE BULLETIN. MAY 1, 1916. vious record, but one degree lower than re- ment operations are believed to have reached corded during the past 28 years. The spring their greatest height. There were 1,200 wells opened early, but there was a serious retarding completed last month. The deliveries of the of activity by reason of a general snowfall Mid-Continent field by all pipe-line companies and freezing temperature which, however, was in January have been given out as 8,376,000 of short duration and little resultant damage. barrels. The general decline in the oil produc- While precipitation has been below normal tion in the eastern fields has greatly increased over the entire district, crop conditions have the demand for production from this field. seldom been better at this season of the year. There appears to be no cessation in the vol- .The faE wheat has passed through the winter ume of business being handled by wholesalers in good condition and is beginning to make and retailers. Practically without exception rapid growth. Prospects are favorable for an shops and factories are working to full capacity unusually large corn acreage. In the western and much overtime work is in effect. Business portion of the district the season is about 10 is somewhat hampered by the scarcity of raw days later than last year. materials and of skilled laborers. Collections The car shortage has been somewhat re- are reported unusually good. lieved by the daily receipt of cars formerly Spring trade in agricultural implements is tied up on eastern lines. Railroad earnings unusually large. Dry goods sales have exshow material improvement. ceeded all former records by a large margin. There are no labor disturbances of impor- In footwear business is averaging 50 per cent tance in thi district. Increased business in better than last year, and millinery shops report all lines and the generally prosperous condi- a flourishing business. tion of the district gives every indication of The lumber and timber business has shown increased real-estate activity and an unusual a healthy vitality during the first quarter, which amount of immigration, has made both business and collections much The prices of cattle, hogs, and sheep con- better than in the corresponding period in 1915. tinue satisfactory. The excellent prices being The highest price paid for silver since 1912 is maintained on hogs is especially interesting, aiding the industry and is a notable developsince the hog has been called the "mortgage ment of an abnormal financial situation. The lifter." Price records continue to be broken increasing price of this metal is reopening old at all the stock markets of the district. Stock mines. With tungsten selling at $90 a unit, hogs can now be shipped from Kansas City Colorado has a mining fever like the days of stockyards to the Kansas farms, an order to Creede and Cripple Creek strikes. that effect having just been issued by the Smelter bins are practically clear of surplus State sanitary live-stock commissioners. For blende and lead ore in the Missouri-Kansasyears the only shipments allowed out of this Oklahoma district. Lead ore has gone to a hog market were to other stockyards for imme- record level, $102.50 being paid by some comdiate slaughter, because of the danger of the panies for choice ores. Pig lead has reached spreading of cholera which has now been $8, the highest point on record, while fine zinc practically eliminated by the system of inocu- blende sells for $120 a ton. The production lation. continues large in this district and has seldom Oil production and drilling continues on an been surpassed in its history. Heavy rains in extensive scale, with prices commonly quoted at Oklahoma have made it impossible for many $1.55, base. There are more than 1,700 well- of the newer plants to load their ore, but all drilling rigs up in the Kansas-Oklahoma dis- mills are running to capacity. trict. New fields are being opened up in Indications are for a broadening demand for nearly every State in the district and develop- money. However, the usual spring demand Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MAY 1, 1916. FEDERAL RESERVE BULLETIN. 241 for funds has not made itself felt. Neither do The onion crop from the Laredo section was commercial-paper offerings show any material below the normal yield, owing to the ravages increase. of the thrip in the growing sections. The total Omaha bank clearings have registered a gain yield this season is estimated at 1,800 cars, every week so far this year, while banks in as against 2,600 cars last year. Prices obtain- Oklahoma City, made in March a new high ing have been only fair, and the average has record. The total clearings exceeded the ag- been around $400 per car. gregate for March-, 1915, by about 40 per cent, Cotton is about all marketed. There are a and similar increases are commonly reported few scattering lots over the district, but it is from all parts of the district. as a rule of such quality that buying has practically ceased. Conditions at this time, on DISTRICT NO. 11—DALLAS. account of the rains, are more favorable for a Rains over most of the district have revived reduction in acreage than a month ago, but business, which up to one month ago was in- that there will be a considerable increase there clined to be sluggish on account of the drouth is no doubt. The agitation of better warewhich had prevailed since early February over houses and the gradual marketing of the crop practically this entire section. The rains were it is thought will have a good effect; in fact, especially heavy in central and north Texas much good has already resulted from this moveand southern Oklahoma, and as a result the ment, and the campaign now being carried on will crop outlook has been materially changed. If be reflected in the handling of the 1916 crop. weather conditions now continue favorable up Demand with banks is getting rather active to midsummer the 1916 crop, especially in as the season advances, and another 30 days Texas, will not be lessened in yield or value. should develop the seasonal requirements. Most of the acreage on which the grain was There is no indication of any contraction, and killed by the cold weather of the late winter rates remain unchanged. Offerings with this has now been replanted in oats or corn. The bank are coming in strong, and our loans and early potato crop is now being marketed at discounts show an increase of some $250,000 good prices. It is estimated the crop com- over a month ago. Of the paper being offered prises about 20,000 acres, which is a material probably 75 per cent consists of that of cattleincrease over last year. men and farmers. Member banks are in good The freeze of April 8 does not seem to have condition to meet their customers1 needs. Unmaterially damaged the fruit and berry crop. less conditions materially change there should Young garden vegetables were injured. The be no occasion for outside assistance other than tomato plants were still in cold frames and no in normal years. With the assistance of this serious injury is reported. Reports from the bank the requirements of the district should largest fruit and truck growing fields in the be taken care of without inconvenience. district are very encouraging. A large crop of Building operations show a healthy improvestrawberries is now being marketed, and prices ment, which is reflected in the demand for maare very satisfactory. terial. Lumber is very active, at good prices; Unfavorable reports come from the south- mills continue to run on full time. The cement western part of the district, which did not have industry is likewise enjoying a good business, the benefit of the fine rains over the northern and shipments over the district indicate a conportion. No rain has fallen in the extreme tinuance of this condition. Local factories southwest for over three months, and stock report their mills running continuously and a water is becoming very scarce. Some cattle ready demand for their output. are dying, and unless rains soon come condi- Reports from the oil fields indicate that 80 tions will be quite serious. per cent more work is being done than a year Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

242 FEDERAL RESERVE BULLETIN. MAY 1,1916. ago, with prices of $1.55 to $1,75 per barrel, DISTRICT NO. 12—SAN FRANCISCO. as against 45 cents a barrel last year. Old The West Coast Lumbermen's Association, fields are being extended, and 80 per cent more composed of a majority of mills operating in laborers are employed in tills industry than in Washington and Oregon, reports March orders 1-915. 34 per cent and shipments 30 per cent over A heavy snow in the western part of the dis- production, mostly for domestic use, exports trict the early part of this month put the ground being restricted by lack of ships. There is in excellent condition. This will bring up early general activity, and prices are up $3 to $5 per grass, and the condition^ of the cattle industry thousand. is quite satisfactory. Cattle wintered well. Acute shortage has caused unparalleled activ- Wholesale grocers report a substantial im- ity in shipbuilding. Seattle reports conprovement in business over 1915, with collec- tracts aggregating $11,000,000, nearly four tions good. A 40 per cent increase in orders times the total at this time last year. The is reported by the large mail-order houses, with principal builder at San Francisco is said to uniform demand for all classes of goods. have contracts in excess of $20,000,000, with An increase in freight traffic is reported by no diminution of demand even with important the railroads, amounting to approximately 10 advances in price because of increased prices per cent. A serious car shortage is reported, for material and labor. on account of congestion in equipment in the Despite dearth of bottoms, Seattle reports for North. This has resulted in the railroads January and February of this year, as compared doubling their charge for demurrage. Passen- with same months last year, imports $35,693,ger traffic shows a slight increase over 1915. 042, increase $21,172,927; exports $15,885,204, Business with retailers is reported as good increase $4,73.2,108. San Francisco reports for for this season, and spring trade is active. Col- same period imports $21,198,558, increase lections are fair. $8, 857,186; exports $15,735,910, decrease A comparative statement of the exports from $57,906. the port of Galveston for the month of March, Although the Panama Canal opened April 1915 and 1916, proves interesting. The value 15, few ships are scheduled for immediate servof the exports for March, 1916, was $13,363,000, ice between the Atlantic and- Pacific coasts, which is a decrease over 1915. This is ex- both because now otherwise engaged and beplained largely by the decrease in shipments of cause extraordinary charter rates for exports cotton and cottonseed products, the value of influence strongly to that service as against which commodities alone amounted to some coastwise service. The Pacific Mail Steamship $17,000,000 in March, 1915. These commod- Co. has announced three steamers of moderate ities are consigned principally to France, Ger- size for San Francisco and China service. many, Italy, Spain, Sweden, and England. California petroleum production averaged in Quite a substantial increase in exports of rice, March 242,656 barrels per day as against hay, and spelter is shown over 1915, shipments 223,495 in February. Daily shipments from of the latter commodity alone amounting to fields were 276,378 and 258,264 for the respec- 6,670,000 pounds and valued at $1,268,000. tive months, reducing the amount in storage Labor seems to be well employed throughout 1,045,388 barrels, approximately 6,000,000 barthis district. There is an especially active de- rels reduction since May, 1915. Eastern dealers mand for workers in the agricultural sections. are reported as insistent buyers of all available Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MAY 1, 1916, FEDERAL RESERVE BULLETIN 243 gasoline and distillate on this coast. Activity precipitation, contribute especial advantage in drilling, greater than at any time for half p, because of high prices for all live stock. dozen years, is reported chiefly in the proven Prunes and apricots in certain sections have oil land of the State, which aggregates 80,702 been reported damaged by frost. It is too acres. In March 34 new wells were brought in early, however, to predict with certainty with an initial daily production of 6,790 regarding these crops. Efforts* are making for barrels. better organization in marketing fresh and dried Extraordinary output and 'unusual prices fruits, which should result in increased returns give copper precedence in metal mining, but to growers. Dried-fruit shipments from Calithere is also great activity in mining gold, sil- fornia in 1915 aggregated $36,924,000, an inver, lead, zinc, and other less well known crease of $8,056,000 over 1914. Navel oranges metals such as tungsten, antimony, magnesite, bring much better prices than last year, and and molybdenite, valuable deposits of which prospects for Valencias, which ripen about midare reported as being discovered. summer, are reported excellent. Lemons are Agricultural prospects are generally favor- yielding fair prices. Raisin crop, 35 per cent able, with especial benefit assured for many over 1914, aggregated 124,000 tons, valued at crops from unusual precipitation during the $10,000,000. Acreage of Thompson seedless rainy months. Grain acreage will be less than raisins is increasing. Nine thousand five hunlast year both because of necessity for summer dred and sixty-four cars of table grapes were fallowing and because of unfavorable weather shipped out of California in 1915, and 1,000 during seeding time. Considerable stocks of carloads consumed in the State, yielding both wheat and barley are still on hand, more growers $9,514,000. than at the corresponding time in either of the Sweet-wine production for 1915 in California two preceding years. The 1915 rice crop in was 4,000,000 gallons, against 16,600,000 in California is reported as 80,000,000 pounds, 1914, dry-wine production declining from with 250,000,000 pounds estimated for 1916. 25,000,000 gallons to 21,000,000. From Calexico, Cal.,. in the Imperial Vajjley, Heavy shipments of vegetables are now going comes the report that cotton acreage on the forward. Oanners are busy with asparagus, of American side will be increased from 12,000 which about 1,000 carloads will be packed. acres last year to 40,000 this year; on the Merchants generally report good distribution Mexican side from 30,000 acres last year to and good collections. Bank clearings for March 65,000 acres this year. Yuma, Ariz., reports in 18 cities of this district increased 19 per cent 4,000 acres in cotton this year, and a normal over March, 1915; building permits 11 percent. production of 2j bales per acre. Cotton seed Credit conditions are easy. The situation as a is said to be used extensively for fattening whole in this district is favorable. There seems cattle. Alfalfa cutting began early in April. prospect of large production and important in- This crop and good pasture, because of much crease in wealth during the current year. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

244 FEDERAL RESERVE BULLETIN. MAY 1, 1916. February and 6,342 in January of the present DISTRIBUTION OF DISCOUNTS BY SIZES year. The average size of the paper dis- AND MATURITIES. counted during the month was about $1,512, The total discounts of commercial paper compared with $1,507 for the preceding made by the Federal Reserve Banks during month, $1,753 for January, 1916, and about the month of March, 1916, were $9,387,300, $1,800 for the last quarter in 1915. This averor 22.5 per cent in excess of the total for the age varies between about $2,570 for the Bospreceding month, though over 30 per cent ton district (where, however, the total numbelow the discounts in March, 1915. About ber of bills discounted during the month was 68 per cent of the month's discounts, as compared only 83), $1,952 for the Atlanta-New Orleans with 79 per cent in February, is credited to district, and $815 for the Philadelphia disthe three southern banks, Kansas City and trict. Chicago together reporting an additional 15 Over one-third of the number and 53 per per cent of the total discounts for the month. cent of the entire amount of the paper dis- The aggregate discounts the first quarter of counted during the month was medium-sized the year were $28,166,800, compared with paper in denominations of $1,000 to $5,000. $36,642,800 for the corresponding quarter in Small bills (in amounts up to $250) represent 1915. It is notable that whereas the discounts over 20 per cent of the total number, though for the quarter of 30-and 60-day paper show less than 2 per cent of the aggregate amount large decreases as compared with correspond- of paper discounted during the month. Of ing 1915 figures, the amounts of 90-day, and the total number of such bills, 1,259, about especially 6-month paper discounted during 30 per cent was handled by Richmond, about the present year are larger than for the first 22 per cent by Atlanta, over 15 per cent by quarter of the past year. Kansas City, and less than 14 per cent by Commodity paper, mostly secured by cotton, Dallas. was discounted by 5 banks and totaled About one-half of 1 per cent of the paper $1,718,987, constituting 18.3 per eent of the discounted during March was 10-day paper; total discounts for the month, compared with 12.3 per cent 30-day; 33.9 per cent 60-day; and 23.4 per cent for February and 16.8 per cent 40.5 per cent 90-day paper. About 1.2 milfor January of the present year. Over 96 per lions, or 12.8 per cent of the total discounts for cent of this class of paper was handled by the the month, was' agricultural and live-stock Richmond and Atlanta banks, of whose total paper, maturing after 90 days at the time of discounts for the month commodity paper con- rediscount. Over 75 per cent of this class stituted about 25 and 50 per cent, respectively. of paper was handled by the Dallas, Kansas Trade acceptances discounted during the City, and Chicago banks. month by 7 banks aggregated $298,733, of Of the 7,639 member banks reported at the which nearly one-half is reported by the close of the month 535, or about 7 per cent, Richmond bank. This total is exclusive of were accommodated during the month through $514,677 of trade acceptances, based upon the discount of paper, as against 451 in Febforeign-commerce transactions, and purchased ruary, 1916, and 570 in March of the past year. during the month by the 3 banks on the Richmond reports the largest number of banks Eastern Seaboard and the San Francisco bank; accommodated during the month, 116, or also of $9,695 of domestic-trade acceptances about 23 per cent of the entire number of bought in the open market during the month member banks in the reserve district. Memby the Atlanta Federal Reserve Bank. ber banks in Texas to the number of 83 secured The total number of bills discounted during about 1.3 millions of rediscounts, 43 banks in the month was 6,209, compared with 5,086 in South Carolina over 1.2 millions, 29 banks in Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

• MAY !, 1916. FEDERAL EESEBVE BULLETIN. 245 North. Carolina over 1 million, 34 banks in these five States is about 55 per cent of the Georgia over 0.9 million, and 30 banks in total discounts reported to the Board for the Virginia over 0.6 million. The combined month. share of rediscounts secured by 219 banks in Commercial paper, exclusive of bankers1 ^acceptances, discounted^ by each of the Federal Reserve Banks during the month of March, 1916, distributed by sizes. NUMBER OF PIECES AND AMOUNTS. [In thousands of dollars.] To $100. O t v o e 1 r 2 $ 5 1 0 0 . 0 O t v o e $ r 5 $ 0 2 0 5 . 0 O to v $ e 1 r ,0 $5 0 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 . 0O to v e $ r 1 0 $ , 5 0 ,0 0 0 0 0 . $1 O 0 v ,0 e 0 r 0. Total. Per cent. Banks, Boston 20 3.8 1.9 15 28.8 71.0 213.3 1.3 2.3 New York 41 7.8 19.2 43 32.1 50 83.4 53.3 25.2 247 304.6 4.0 3.2 Philadelphia 65 11.2 28.2 47 37. 47 79.0 13.4 260 212.0 4.2 2.3 Cleveland 11 1.8 5.8 18 12.7 52 98.8 19.6 25.0 2.1 2.9 Eichmond 51.4 453181.6 476 386.3 460 797.7 499.7 232.2 2,116 3,240.9 34.1 34.5 Atlanta (including New Orleans branch). 24.7 142 55.7 130 103.4 157 262.3 373.3 390.9 484.7 8731,704,1 14.1 18.1 Chicago .. 25 5.2 87 34.9 120 93.6 163 276.8 166.1 41.3 447; 618.0 7.2 6.6 St. Louis.... 16 3.0 28 11.6 38 27.5 48 81.6 42.7 157 234.1 2.5 2,5 Minneapolis 16 2.3 21 8.0 36 25.2 39 56.9 6.0 117 111.4 1.9 1.2 Kansas City 131 22,7 188 69.5 190 134.8 154 240.8 117.9 38.1 794 795.9 12.8 8.5 Dallas 137 23.0 144 56.4 202 149.4 196 314.7 239.7 18 326.3 8581,445.5 13.8 15.4 San Francisco 14 5.4 33 22.8 47 81.8 18 26.9 30.2 124 238.7 2.0 2.5 Total... 35728.0 902 157.5 1,224 478.21,3411,032.5 1,428 2,402.6 673 2.604.4 2181,522.4| 66U61.7 6,209 9,387.3100.0100.0 PEECENTAGES OF AMOUNTS OF EACH CLASS TO TOTAL. Bank. 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. Boston . .. 0.2 1.8 0.9 3.2 13.5 47.1 33.3 100.0 New York .5 2.6 6.3 10.5 27.4 26.9 17.5 8.3 100.0 Philadelphia .6 5.3 13.3 17.9 37.2 19.4 6.3 100.0 Cleveland .1 .7 2.2 4.7 36.7 39.0 7.3 9.3 100.0 Eichrnond .2 1.6 5.6 11.9 24.6 33.5 15.4 7.2 100.0 Atlanta (including New Orleans branch) .5 1.5 3.3 6.1' 15.4 21.9 22.9 28.4 100.0 Chicago . .8 5.7 15.1 44.8 26.9 6.7 100.0 St. Louis 1.3 5.0 11.7 34.9 28.9 18.2 100.0 Minneapolis. 2.0 7.2 22.6 51.1 11.7 5.4 100.0 KansasCity .... . .6 2.9 8.7 16.9 30.3 21.0 14.8 4.8 100.0 Dallas .2 1.6 3.9 10.3 21.7 23.1 16.6 22.6 100.0 San Francisco .1 .2 2.3 9.5 34.3 29.6 11.3 12.7 100.0 Total .3 1.7 5.1 11.0 25.6 • 27.7 16.2 12.4 100.0 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

246 FEDERAL RESERVE BULLETIN. MAY 1,1916. Commercial paper, exclusive of bankers' acceptances, discounted during January by each of the Federal Reserve Banks, distributed by States and maturities as of date of discount. [In thousands of dollars.] Paper Paper Paper Number Paper maturing maturing maturing Paper Total Districts and States. of N m um em be b r er a o cc f o b m an m k o s - m wi a t t h u i r n in 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 ft t e u r r i 9 n 0 g c c i o a m l p m ap er e - r banks. dated. days. within 30 within 60 within 90 days. discounted. days. days. days. District No. 1—Boston: Connecticut 72 Maine 70 2 6.0 2.0 4.8 12.8 Massachusetts i.. ... 168 2 120.0 120.0 New Hampshire 56 2 1.0 7.0 10.1 18.1 Rhode Island 17 Vermont.. .. 48 3 36.0 8.4 18.0 62.4 Total 431 9 163.0 17.4 32.9 213.3 District No. 2—New York: New Jersey . ^.... 132 2 5.0 5.2 11.0 21.2 New York. 482 12 6.1 5.5 107.2 164.1 0.5 283.4 Connecticut. i... ^ 15 Total . 629 14 6.1 10.5 112.4 175.1 .5 304.6 District No. 3—Philadelphia: Delaware. : 24 1 6.5 6.5 New Jersey.... .-. 70 4 23.2 85.7 27.4 25.5 161.8 533 8 2.0 10.3 26.9 4.5 43.7 Total 627 13 23.2 87.7. 44.2 52.4 4.5 212.0 District No. 4—Cleveland: Kentucky..... 72 2 3.9 1.3 5.2 Ohio. . ......... 375 7 2.1 65.7 132.9 26.3 6.7 233.7 Pennsylvania 299 3 1.9 4.9 12.5 19.3 West Virginia . 14 1 10.6 10.6 Total ... 760 13 2.1 67.6 152.3 40.1 6.7 268.8 District No. 5—Richmond: District of Columbia 14 1 79.2 79.2 Maryland ... 97 9 5.2 72.8 106.1 2.4 186.5 North Carolina 79 29 6.9 146.3 357.0 514.2 12.7 1,037.1 South Carolina 76 43 136.5 460.1 620.6 38.1 1,255.3 Virginia 138 30 70.7 232.2 327.8 .21.4 652.1 West Virginia . . . 104 4 .3 3.3 9.5 17.6. 30.7 Total 508 116 7.2 362.0 1,131.6 1,665.5 74.6 3,240.9 Dsitrict No. 6.—Atlanta: Alabama 94 20 13.5 88.0 242.1 343.6 Florida 55 12 .9 38.2 77.0 27.5 2.7 146.3 Georgia 112 34. 1.0 67.2 417.9 386.7 32.3 905.1 Louisiana 5 2 38.4 170.0 208.4 Mississippi . 18 0 Tennessee .. 95 12 14.6 24.6 55.7 5.8 100. 7 Total 379 80 1.9 171.9 777.5 712.0 40.8 1,704.1 District No. 7.—Chicago: Illinois......... 317 16 24.5 79.0 61.8 48.2 211.5 Indiana 196 9 1.0 11.0 39.7 25.1 36.0 112.8 Iowa 349 28 11.9 89.5 49.0 126.4 276.8 Michigan -. ...... 77 1 2.5 2.5 Wisconsin 51 2 2.0 2.5 6.2 3.7 14.4 Total 990 56 1.0 49.4 213.2 142.1 212.3 618.0 District No. 8.—St. Louis: Arkansas 65 5 4.2 .2 9.8 9.6 23.8 Illinois 157 9 .8 22.0 22.3 12.7 57.8 Indiana 61 2 5.5 .5 6.0 Kentucky 68 1 2.0 15.0 17.0 Mississippi 18 3 7.3 26.2 23.0 56.5 Missouri 81 7 2.0 10.8 27.4 18.8 59.0 Tennessee 20 3 10.3 .9 2.3 .5 14.0 Total 470 30 24.6 67.6 99.8 42.1 234.1 District No. 9.—Minneapolis: Michigan.. . 31 0 Minnesota 280 7 .7 8.2 4.9 23.9 40.7 Montana. 68 0 North Dakota 154 2 .9 5.2 6.1 South Dakota.. 120 8 12.1 12.5 38.3 62.9 Wisconsin : 88 1 .9 .8 1.7 Total 741 18 .7 21.2 18.3 71.2 111.4 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MAY 1, 1916. FEDERAL RESERVE BULLETIN. 247 Commercial paper, exclusive q/* banker's\ acceptances, discounted during January byeach 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 er a o N c d f c u a o b m t m a e b n d m e k . o r s - m w P i a d t t a a h u p y i r n e s i . r n 1 g 0 m w d a a i a f t v t t h e u s r i 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 m w d a a i a f t y t t h e u s i r r b n i 6 n u 9 0 g t 0 < m a P a d ft t a a e u p y r r e s i 9 . r n 0 g d c c i i s o a T c l m o o p u m t a a n e p l t r e e - r d. days. days. days. District No. 10—Kansas City: Colorado 120 2 30.8 14.8 11.2 56.8 Kansas 220 21 4.1 17.7 48.0 54.9 114.4 239.1 Missouri 53 5 .1 6.6 30.5 20.9 58.1 Nebraska 202 0 2.0 25.5 20.9 16.1 64.5 New Mexico . . . .. 9 1 3.6 5 9 9.0 18.5 Oklahoma 306 31 51.0 105.4 94.7 107.8 358.9 Wyoming 33 Total 943 69 4.1 101,6 203.9. 218.1 268.2 795.9 District No. il—Dallas: Arizona... 6 1 .5 11.1 3.7 20.0 35.3 Louisiana . . .. 25 1 6.3 2.9 1.5 10 7 New Mexico 28 4 8.3 5.9 33.4 47.6 Oklahoma 36 5 4.6 14.3 7.4 14.0 40.3 Texas 539 83 66.3 350.3 519. 4 375.6 1,311.6 Total 634 94 77.7 386.9 537.9 443.0 1,445.5 District No. 12—San Francisco: Alaska . 1 Arizona. 7 California. 266 18 39.8 45.4 79.6 35.1 199.9 Idaho ... 58 , 1 1.3 1.7 3.0 Nevada 10 Oregon. . . . 84 4 3.1 30.4 2.3 35.8 Utah 23 Washington 78 Total 527 23 39.8 48.5 111.3 39.1 238.7 RECAPITULATION. [In thousands of dollars.] Paper Paper Paper Districts and cities. N m u b m e a m n b k b e s r e . r of N b c u a d o m n a m k t b e s m e d a r o . c o - - f w m i P a d t t a h a u p y i r n e s i . r n 1 g 0 w m d a a i a f y t t t h e s u i r , r n b i 1 n 3 u 0 g 0 t m w d a a i a f y t t t h e s u i r , r n b i 3 n 6 u 0 g 0 t m w d a a i a f y t t t h e s u i r , r n b i 6 n 9 u 0 g 0 t m a P a d ft t a a e u p y r r e s i 9 r . n 0 g T p c o a m o p t u a e e l n r r c t c d i e o a d i m l s . - - Percent. days. days. days. N No o . . 1 2 — —N B e o w sto Y n ork . 6 4 2 3 9 1 1 9 4 6.i 1 1 6 0 3 . . 5 0 1 1 1 7 2 . . 4 4 1 3 7 2 5 . . 9 1 0.5 2 30 1 4 3 . . 3 6 3 2 . . 2 3 No. 3—Philadelphia. 627 13 23.2 87.7 44.2 52.4 4.5 212.0 2.3 No. 4—Cleveland. . 760 13 2.1 67.6 152.3 40.1 6.7 268.8 2.9 No 5—Richmond 508 116 7.2 362.0 1,131.6 1,665.5 74.6 3,240.9 34.5 No. 6—Atlanta 379 80 1.9 171.9 777.5 712.0 40.8 1,704.1 18.1 No. 7—Chicago 990 56 1.0 49.4 213.2 142.1 212.3 618.0 6.6 No. 8—St. Louis 470 30 24.6 67.6 99.8 42.1 234.1 2.5 No. 9—Minneapolis. 741 18 .7 21.2 18.3 71.2 111.4 1.2 No. 10—Kansas City.... 943 69 4.1 101.6 203.9 218.1 268.2 795.9 8.5 No. 11—Dallas 634 94 77.7 386.9 537.9 443.0 1,445.5 15.4 No. 12—San Francisco 527 23 39.8 48.5 111.3 39.1 238.7 2.5 Total for March 7,639 535 45.6 1,156.5 3,176.7 3,805.5 1,203.0 9,387.3 Per cent 7.0 .5 12.3 33.9 40.5 12.8 100.0 100.0 Total for February, 1916 i 7,643 451 64.0 1,040.3 2,558.4 2,995.8 1,006.1 7,664,6 Total for January, 1916 7,649 614 263.3 1,855.4 3,350.2 4,121.6 1,515.4 11,114.9 Total for Jan.-Mar., 1916... 372.9 4,052.2 9,094.3 10,922.9 3,724.5 28,166.8 Total for Jan.-Mar., 1915 8,865.4 14,306.1 10,793.9 2,677.4 36,642.8 i Corrected figures. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

248 FEDERAL RESERVE BULLETIN. MAY 1,1916. Trade acceptances discounted by each Federal Reserve Bank from Sept. 2, date of first discount, to Dec. SI, 1915, and for the months of January, February, and March, 1916. Total Janu- Total to January, February, March, ary, Febru- Federal Reserve Bank. D • e 1 c 9 . 15 3 . 1, 1916. k1916. 1916. ary 1 , 9 M 16. arch. $5,700 $5,594 $5,594 Cleveland -. - 4,900 $700 49,572 50,272 Richmond - - 450,500 $137,300 135,800 144,934 418,034 Atlanta (including New Orleans branch) 1,007,100 202,000 95,500 53,972 351,472 Chicago.. 8,200 8,200 St. Louis - 167,800 32,600 3,500 33,154 69,254 EZansas City . . . . 87,800 47,300 2,311 49,611 Dallas.. •. 160,800 11,700 10,600 9,196 31,496 San Francisco ... . . .. 74,200 5,300 5,300 Total 1,958,800 444,400 246,100 1 298,733 989,233 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. SI, 1915, and for the months of January, February, and March, 1916. Federal Reserve Bank. T D o e t c a . l 3 t 1 o , January, February, March, T ar o y t , a l F J e a b n r u u - - 1915. 1916. 1916. 1916. ary, March, 1916. Richmond $2,881,400 $1,010,600 $1,092,200 $802,500 $2,905,300 Atlanta (including New Orleans branch). 7,032'300 745,800 622,700 853,800 2,222,300 St. Louis . 99,800 Minneapolis 25,300 1,300 9,100 900 11,300 Dallas........: 239,100 81,900 57,600 55,000 194,500 San Francisco 37,200 24,000 13,100 6,800 43,900 Total. 10,315,100 1,863,600 1,794,700 11,719,000 5,377,300 1 Included in total of commercial paper shown above. Commodity paper discounted by each Federal Reserve Bank during January, February, and March, 1916, distributed by Atlanta Class. Richmond. (inc N lu ew ding Min l n is e . apo- Dallas. Sa c n i s F co ra . n- Total. Orleans). Cotton —... $2,865,333 $2,218,445 I $187,576 $256 $5,271,610 Peanuts. \m 37,414 900 38,314 Wheat. - $9,735 9,735 Maize - 1 021 >w& 6 944 7,965 Flax 1,605 1,605 Hops 19,611 19,611 Hav . M '« %> 400 400 Beans 480 480 Miscellaneous .. 2,500 1,040 24,003 27,543 Total 2,905,247 2,222,286 11,340 194,520 43,870 5,377,263 Amounts of commercial paper, exclusive of bankers' acceptances, held by each Federal Reserve Bank on Mar. 31, 1916, distributed by maturities. Paper Paper Paper Paper maturing maturing maturing Paper Federal Reserve Bank. m w a i t t u h r i i n ng d a a f y te s r b 1 u 0 t d a a f y te s r b 3 u 0 t d a a f y te s r b 6 u 0 t m a a ft t e u r r i 9 n 0 g Total. Per cent. 10 days. within within within days. 30 days. 60 days. 90 days. Boston $43,100 $113,000 $12,600 $28,600 $197,300 0.9 New York 42,000 79,300 176,800 98,100 $500 396,700 1.9 Philadelphia 75,400 84,300 76,400 25,300 4,500 265,900 1.3 Cleveland 62,600 101,300 145,100 15,800 11,400 338,200 1.6 Richmond 1,131,900 1,515,700 2,281,600 1,133,700 102,100 6,165,000 29.0 Atlanta (including New Orleans branch) 673,900 1,012,900 1,660,900 541,200 74,200 3,963,100 18.6 Chicago 188,800 337,100 531,100 322,500 266,100 1,645,600 7.7 St. Louis.. 87,400 181,400 156,200 111,200 65,000 601,200 2.8 Minneapolis — 102,300 116,400 270,400 156,000 120,400 765,500 3.6 Kansas City 234,800 545,200 477,400 350,900 352,700 1,961,000 9.2 Dallas 542,000 713,300 1,559,600 769,700 893,900 4,478,500 21.1 San Francisco 59,600 120,700 104,500 133,400 74,200 492,400 2.3 Total 3,243,800 4,920,600 7,452,600 3,686,400 1,965,000 21,268,400 100.0 Per cent 15.3 23.1 35.1 17.3 9.2 100.0 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MAT 1, 1916. FEDERAL KESEKVE BULLETIN. 249 ACCEPTANCES. Acceptances held by Federal Reserve Banks as per schedules on file on dates specified.—Total bankers1 acceptances by classes. [In thousands of dollars.] Nonmember bsinks. Nonmember banks. Date. M ba e n m k b s e . r Trust State Private Total. Date. M ba e n m k b s e . r Trust State Private Total. co n m ie p s. a- banks. banks. co n m ie p s. a- banks. banks. 1915, 1916. Feb. 22 93 93 Jan.24 16,348 -8,070 363 1,441 26,222 Apr. 5 3,653 7,820 10 110 11,593 Jan.31... 15,834 8,174 356 1,510 25,874 May3 5,038 8,189 10 110 13,347 Feb.7 15,681 7,876 336 1,456 25,349 June 7 5,242 4,516 10 192 9,960 Feb. 14 17,581 7,985 347 1,851 27, 764 July3 4,342 5,267 161 9 770 Feb.21 .17,661 8,194 392 1,841 28,088 Aug. 2 5,350 5,407 20 352 11,129 Feb. 28 17,436 8, 755 408 1,841 28,440 Sept. 6 6,087 6,305 20 472 12,'884 Mar. 6 17,182 8,670 408 1,781 28,041 Oct. 4 9,000 4,898 132 343 14,373 Mar. 13 20,323 10,032 470 1,631 32,456 Nov. 1 8,477 4,331 253 204 13,265 Mar. 20.' 20,563 11,280 408 ,2,467 34,718 Dec. 6 12,311 5,172 275 396 18,154 Mar. 27.. 21,128 12,864 411 3,078 .37,481 Apr. 3 21,000 13,573 473 3,262 38,308 1916, Apr. 10........ 22,239 14,864 476 3,405 40,984 Jan. .3 15,494 7,160 362 822 23,838 Apr.17 22,135 15,028 564 3,442 41,169 Jan. 10 16,492 8,057 370 938 25,857 Apr. 24 23,566 15,196 584 3,504 142.850 Jan. 17 , 16,908 7,655 425 1,010 25,998 i Acceptances indorsed by member banks: State banks, $9,000; private banks, $1,993,000; total, 82,002,000. Amounts of acceptances held by the several Federal Reserve Banks at close of business on Fridays. Mar. 24 to Apr. 21, 1916. [In thousands of dollars.] Acceptances maturing—- 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 n t t - a. Chicago. Lo S u t. is. Minne- K C s i a a t n s y - . Dallas, c F S i r s a a c n n o - . sy T s f o o t t e r a m l . Within 10 days: Mar. 24 $2,942 $334 $15 S66 $252 1118 $26 $40 §135 $4,534 Mar. 31 779 1,494 596 141 271 279 106 79 138 3,883 Apr. 7.... •1,318 1,216 444 200 171 130 44 33 18 3,672 Apr. 14..... 1,132 1,041 970 250 135 5 30 45 35 3,729 Apr. 21.-. 1,649 1,589 1,059 90 200 122 20 96 77 4,902 From 11 to 30 days: Mar. 24 1,786 2,102 933 252 250 332 245 123 93 144 6,260 Mar.31 2,175 2,235 1,522 112 175 87 64 91 75 6,551 Apr.7 2,034 2,388 1,207 107 **50' 232 149 172 124 160 6,638 Apr. 14 3,274 3,695 741 224 364 158 137 162 446 9,201 Apr. 21 2,271 2,847 763 355 24 596 178 239 281 533 8,087 From 31 to 60 days: Mar.24 3,959 4,974 1,913 448 78 795 196 259 296 13,521 Mar.31 4,352 5,080 1,410 503 95 957 298 238 371 638 13,942 Apr.7 4,197 5,414 2,063 550 214 1,145 367 276 496 626 15,348 Apr.14 5,176 5,100 2,337 776 368 1,278 479 470 519 595 17,098 Apr. 2.1.. 5,853 6,992 2,259 787 551 1,120 510 460 375 577 19,484 From 61 days to 3 months: Mar.24 5,893 4,707 1,961 310 238 786 267 258 226 14,930 Mar.31.. 4,933 6,384 1,725 522 175 624 290 365 239 291 15,548 Apr.7 4,615 7,054 1,890 591 302 610 449 362 180 405 16,458 Apr.14. .. 1,968 6,996 1,562 553 170 818 518 405 257 832 14>079 Apr.21 965 5,436 1,966 459 175 844 443 350 261 11,764 Total acceptances held: Mar.24 12,236 14,725 5,141 1,025 574 2,165 843 675 687 1,108 39,245 Mar.31... 12,239 15,193 5,253 1,278 270 2,027 954 773 780 1,142 39,924 Apr.7..... 12,164 16,072 5,604 1,346 766 2,158 1,095 854 833 1,209 42,116 Apr.14. 11,550 16,832 5,610 1,639 788 2,595 1,160 1,042 983 1,908 44,107 Apr.21 10,738 16,864 6,047 1,691 750 2,760 1,253 1,069 1,013 2,052 44.237 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

250 FEDERAL RESERVE BULLETIN. MAY 1, 19X6. 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, February, and March, 1916. [In thousands of dollars.] Acceptances maturing— Boston. Y N o e r w k. . Ph p i h la ia d . el- C la le n v d e . - m E o ic n h d - . la A n t t - a. Chicago. Lo S u t. is. M ap in o n li e s - . K C s i a a t n s y - . Dallas. F c S i r s a a c n n o - . sy T s f o t o t e r a m l . $ Within 30 days: Calendar vear 1915 11 1,246 695 101 7 156 103 45 69 61 2,980 January, 1916. 587 64 20 9 6 734 February 1916 909 277 50 41 1 50 125 1,453 March, 1916 680 741 15 18 1,454 Total...... 545 3,422 1,713 215 56 7 174 103 66 78 50 192 6,621 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 Febnia rv 1916 41 313 36 30 116 50 33 22 13 654 March, 1916 98 520 1,835 70 18 150 146 44 151 107 3,139 Total 2,378 3,831 3,378 888 37 1,361 613 274 411 883 14,054 After 60 days but within 3 months: Calendar vear 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 March, 1916 5,913 6,978 2,183 579 421 787 355 365 285 459 18,325 Total - 23,751 36,032 8,136 3,357 250 832 6,742 2,179 1,978 2,169 3,602 89,028 Total acceptances bought: Calendar vear 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 March, 1916..... 6,011 8,178 . 4,759 649 15 439 955 501 409 436 566 22,918 Total - 26,674 43,285 13,227 4,460 306 876 8,277 2,895 2,318 2,658 50 4,677 109,703 Distribution of Mils bought in open market by all Federal Reserve Banks during the month of March, 1916, by classes of acceptors and sizes. To $5,000. O to v e $ 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. II II r a < Member banks... 134 $490,007 112 $955,965 $3,276,115 $2,480,573 39 $3,209,925 $2,144,046 544 $12,556,681 54.9 Trust companies. 283,406 739,614 2,265,183 1,310,734 1,237,377 1,635,127 345 7,471,441 32.7 State banks 90,625 32,443 301,595 30,000 47 454,663 2.0 Private banks.... 40,402 69,299 494,146 17 668,364 75 1,860,894 8.1 Total bankers1 accept- 265 904,440 1,797,321 6,337,039 4,489,671 61 5,035,985 22 3,779,223 1,011 122,343,679 97.7 Trade acceptances . 37,468 186,233 241,393 59,278 59 S524,372 2.3 Total bills bought in open market....... 941,908 2341,983,554 356 6,578,432 108 4,489,671 62 5,095,263 22 3,779,223 1,070 22,868,051 100.0 Per cent 4.1 8.7 28.8 19.6 22.3 16.5 100.0 Total for Jan.-Mar... 749 2,278,542 613 5,012,301 769 14,240,484 204 8,177,999 100 7,993,470 37 7,105,598 2,472 44*808,394 * Of the above total of bankers' acceptances, $22,014,084 was based on imports or exports and $329,595 on domestic trade transactions. 2 Of the above total, $514,677 was drawn abroad on importers in the United States and indorsed by foreign banks, while $9,695 represents the amount of domestic trade acceptances bought during the month in the open mar Vet. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MAY 1,1916. .FEDERAL BESEKVE BULLETIN. 251 Total investment operations of each Federal Reserve Bank during the month of March, 1916 and 1915. [In thousands of dollars.] Bills Bills bo m u a g r h k t e J t n open Municipal warrants. United States bonds. Tot o al p e in ra v t e io s n tm s. ent discounted Bank. b m a b f e n o e m k r r s - . B c e a a e r c n p s - k t ' - - a T c n r e a c a p c e d - t s - e . Total. City. State. ot A h l e l r. Total. 2 c e p n e t r . 3 c e p n e t r . c 4 e p n e t. r Total. 1916 19.15 ances. Boston . ... 213.3 5,996 15 6.011 1,071.1 1,071.1 7,295.4 1,515.9 New York........ .. 304.6 7,794 384 8,178 3,582.6 3,582.6 3,202.6 3,202.0 15,267.2 4.314.7 Philadelphia 212 0 4'744 15 4 759 852.6 3 1 855.7 716 0 716.0 6,542.7 2,356.4 Cleveland. .„ 268.8 '649 649 1.407.7 5.6 1,413.3 440.0 83.0 523.0 2,854.1 1,886.7 Richmond 3,240.9 15 15 10.0 10.0 356.0 356.0 3.621,9 4,266.1 Atlanta 1,704.1 429 io 1,236.6 • 5.0 1,241.6 3,384.7 2,890.1 Chicago 618.0 955 955 1,221.0 6.1 3.1 1,230.2 29.0 321.0 350.0 3,153.2 3,372.5 St. Louis 234.1 501 501 578. 7 578.7 1,313.8 1,128.0 Minneapolis . . 111. 4 409 409 632.3 632.3 337.6 337.0 1'. 489. 7 809.0 Kansas City 759.4 436 436 593.7 593.7 1,492.25 1/492.25 3,281.35. 842.2 Dallas .... 1.445.5 32 0 32.0 1,477.5 2,230.0 San Francisco. 238.7 466 100 566 458.3 458.3 1,263.0 1,223.3 Totals: March 9,350.8 22,394 524 22,91810,408.0 9.2 8.710,425.9 7.400.85 766.0 83.0 8,249.85 50,944.5526,834.9 February 7,664.6 11,894 522 12,41610,393.3 20.4 11.210,424.9!6J82.251,739.5 975.019,496.75 40,002.2520,345.8 January. li.114.9 9,375 149 9,507.8 236.0 62.5 9,806.3 4,393.80 1403.381,830.016,627.18 37.072.3823,450.3 3 months ending Mar. 31, 1916.... 28,130.3 43,663 1,195 44,85830,309.1 265.6 82.430,657.118,576.902,908.882.888.024,373.78128.055.68 3 months ending Mar. 31, 1915 35,642.8 16.409.4 5,486.8 1,070.0 6,556.8 70,631.0 1 Corrected figures. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

252 FEDERAL RESERVE BULLETIN. Mill, 1916. 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. 31 to Apr. 21, 1916. RESOURCES. [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 . - City. 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 . Gold coin and certificates in vault: Mar.31 10,058 161,707 5,883 11,630 4,768 5,764 33,986 4,957 3,654 4,675 4,020 7,040 258,052 Apr.7.. 156,763 5,667 11,666 4,798 5,563 31,780 4,997 3,569 4,066 3,905 6,641 245,778 Apr. 14 6,015 156,890 8,013 11,708 4,815 5,696 29,342 4,885 3,579 4,216 3,807 6,748 245,714 Apr.20-21.... 5,856 152,544 4,946 11,806 4,850 5,862 31,853 4,671 3,582 4,390 3,809 5,713 239,882 Gold settlement fund: Mar.31.... 3,125 6,329 7,766 9,749 10,733 4,111 8,467 3,497 4,591 4,161 10,373 2,738 75,640 Apr.7... 5,278 8,106 7,380 9,972 11,424 2,751 9,526 3,986 4,688 4,769 9,157 2,974 80,011 Apr. 14 6,054 6,342 5,923 8,519 10,430 2,631 9,990 5,055 4,630 4,359 9,397 2,360 75,690 Apr.20-21 9,617 4,927 5,740 8,109 10,289 2,489 8,159 5,039 4,643 3,702 9,730 2,341 74,785 Gold redemption fund: Mar.31 -- 5 250 50 313 320 200 10 30 65 242 10 1,548 Apr.7 5 250 50 274 291 200 82 30 76 248 10 1,549 Apr.14 5 250 50 262 318 200 60 30 66 227 10 1,495 Apr.20-21... 5 250 50 235 291 200 43 30 82 232 10 1,473 Legal-tender notes, silver, etc.: Mar.31 35 1,855 3,057 1,085 127 240 1,149 482 185 12 Apr.7 7 4,499 2,488 957 79 275 1,080 483 193 702 13 11,600 Apr.14 87 4,553 2,186 946 83 244 1,135 822 501 194 746 7 11,504 Apr.20-21 19 1,637 1,790 956 109 299 2,380 818 502 169 813 13 9,505 Total reserve: Mar.31 13,223 170,141 16,756 22,517 15,941 10,345 43,802 9,355 8,757 9,086 15,455 9,800 345,178 Apr.7 11,653 169,618 15,585 22,628 16,575 42,586 9,889 8,770 9,104 14,012 9,638 338,938 Apr.14 12,161 168,035 16,172 21,190 15,590 40,667 10,822 8,740 8,835 14,177 9,125 334,403 Apr.20-21 15,497 159,358 12,526 20,916 15,483 8,941 42,592 10,571 8,757 8,343 14,584 8,077 325,645 Bills discounted—Members: Mar.31 198 396 266 336 6,165 3,963 1,645 601 766 1,961 4,478 492 21,267 Apr.7... 283 317 507 6,228 3,712 2,407 600 706 1,935 4,665 519 22,268 Apr.14 319 439 537 577 6,087 3,755 2,061 578 702 1,902 4,735 470 22,162 Apr.20-21 312 415 545 461 6,464 3,761 1,723 560 694 1,851 4,845 436 22,067 Bills bought in open market: Mar.31 12,239 15,193 5,253 1,278 754 2,027 954 773 780 1,142 40,408 Apr.7 12,164 16,072 5,604 1,346 766 2,158 1,096 854 832 1,209 42,116 Apr.14... 11,549 16,832 5,610 1,639 788 2,595 1,160 1,043 983 1,909 44,108 Apr. 20-21 10,738 16,864 6,047 1,691 750 2,760 1,253 1,069 1,013 2,052 44,237 One-year Treasury notes: Apr.7 - 1,532 50 350 1,932 Apr.14 1,532 100 380 350 410 3,234 Apr.20-21 250 1,532 456 350 410 3,840 United States bonds: Mar 31 3,202 4,206 4,224 1,676 1,400 6,682 3,339 2,214 7,978 1,333 3,035 40,275 Apr.7 '3,288 2,449 4,490 3,849 1,676 1,990 8,338 3,339 1,864 8,090 2,818 3,035 45,226 Apr. 14 3,288 2,549 3,528 4,094 1,751 2,069 8,338 2,959 2,114 7,974 2,840 3,420 44,924 Apr.20-21 3,048 2,550 3,528 4,134 1,295 2,069 8,423 2,959 2,114 8,711 2,841 3,532 45,204 Municipal warrants: Mar 31. • 2,603 14,993 3,330 2,950 91 3,620 1,241 1,356 1,832 33,015 Apr.7 •.. 2,578 14,824 3,308 4,950 60 3,711 1,257 1,381 2,188 35,256 Apr.14 2,483 15,165 3,350 4,991 60 3,776 1,257 1,406 2,213 35,706 Apr. 20-21 2,481 15,156 3,291 4,969 60 4,061 1,237 1,418 •1,010 2,203 35,892 Federal reserve notes, net assets: Mar 31 1,111 14,325 116 352 231 1,537 1,170 5,296 25,118 Apr.7 719 10,384 172 375 1,083 ,1,557 1,025 1,128 5,318 21,761 Apr.14 1,137 10,480 138 1,062 1,587 869 1,178 5,3,10 22,159 Apr.20-21.... 1,000 9,888 203 354 1,161 1,611 919 1,127 5,468 21,731 Due from other Federal Reserve Banks, net: Mar.31 2,043 2,628 625 1,719 7,994 1,324 2,981 1,816 339 1,709 i13,128 Apr.7 3,456 3,173 279 1,080 1,352 5,786 688 3,192 1,238 622 1,498 1 11,161 Apr.14 2,416 3,008 431 1,699 791 7,318 1,850 2,774 2,026 247 1,690 i 16,825 Apr.20-21 5,429 1,137 1,276 786 4,597 2,276 2,645 2,306 2,833 117,515 All other resources: Mar.31 43 318 137 105 1,487 443 885 141 522 324 4,975 Apr.7.... 15 3,810 96 310 35 1,019 572 714 110 403 194 7,587 Apr.14 ..*.. 59 306 76 321 136 978 448 595 126 375 211 4,023 Apr.20-21 24 277 70 319 108 937 374 292 116 466 397 196 3,576 Total resources: Mar.31 32,446 218,568 32,692 32,644 25,712 18,180 67,750 18,679 18,158 23,142 21,929 23,514 523,364 Apr.7 34,156 219,078 32,745 34,294 25,669 18,802 67,115 18,608 18,355 22,601 22,426 23,599 526,245 Apr.14 33,412 215,338 32,881 33,741 25,323 18,338 66,790 20,470 18,433 23,504 22,391 24,348 527,544 Apr.20-21 33,350 206,040 32,101 33,981 25,142 18,411 66,141 20,447 18,290 24,110 22,667 24,797 519,707 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

MAY 1,1916. FEDEKAL BESEKVE BULLETIN. 253 Resources and liabilities of each of the Federal Reserve Banks and of the Federal Reserve System at close of business on Fridays, Mar. SI to Apr. 21,1916—Continued. LIABILITIES. [In thousands of dollars.] Boston. Y N o e r w k. d P el h p i h la i - a. C la le n v d e . - m R o ic n h d - . la A n t t - a. Chicago. Lo S u t. is. M ap i o n l n i e s. - K C a i n t 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 . Capital paid in: Mar. 31 5,146 11,122 5,215 5,948 3,345 2,414 6,666 2,788 2,561 3,006 2,733 3,944 54,888 Apr. 7i.» .. 5,140 11,123 5,215 5,948 3,345 2,383 6,667 2,788 2,563 3,006 2,734 3,931 54,843 Apr 14 4,974 11,291 5,215 5,948 .3,345 2,382 6,669 2,788 2,563 3,006 2,733 3,931 54,845 Apr. 20-21 4,950 11,297 5,215 5,948 3,345 2,405 6,670 2,788 2,563 3,002 2,734 3,926 54,843 Government deposits: Mar.31 363 10,560 340 892 7,027 7,049 2,173 1,504 497 1,022 5,613 1,429 38,469 Apr 7 549 8,327 1,111 936 6,836 7,468 1,209 1,737 521 1,042 5,695 1,585 37,016 Apr. 14 .. .. 1,398 6,024 790 1,017 6,244 7,066 987 1,986 457 1,126 5,853 1,784 34,732 Apr. 20-21............ 1,224 6,248 876 1,094 6,117 6,897 327 2,395 363 1,574 6,108 2,068 35,291 Reserve deposits, net: Mar.31....... 26,937 186,895 27,137 25,804 11,352 8,554 58,911 14,387 15,100 16,978 9,791 18,141 419,987 Apr. 7 28,467 188,425 26,419 27,410 11,372 8,843 59,239 14,083 15,271 16,229 9,656 18,083 423,497 Apr.14...... 27,040 190,598 26,876 26,776 11,594 8,782 59,134 15,696 15,413 16,810 9,540 18,248 426,507 Apr. 20-21... 26,177 183,773 26,010 26,939 11,468 9,001 59,144 15,264 15,364 16,365 9,538 18,306 417,349 Federal Reserve notes, net liability: Mar.31 3,939 1,172 3,792 8,903 Apr. 7.. 4,086 1,073 4,341 9,500 Apr. 14 4,107 1,139 4,265 9,511 Apr. 20-21 4 174 1 205 4,238 9,617 Federal Reserve bank notes in circulation: Mar.31. , 964 964 Apr. 7.... 1,251 1,251 Apr.14.. 1,423 1,423 Apr. 20-21 1,964 1,964 Due to other Federal Reserve Banks, net: Mar.31.... 9,991 59 Apr. 7 11,203 Apr.14 7,425 Apr. 20-21 999 4,722 49 All other liabilities: Mar.31 ... 49 104 153 Apr. 7.. 30 108 138 Apr. 14 33 108 385 526 Apr. 20-21 38 108 497 643 Total liabilities: Mar.31 32,446 218,568 32,692 32,644 25,712 18,180 67,750 18,679 18,158 23,142 21,929 23,514 523,364 Apr. 7 34,156 219,078 32,745 34,294 25,669 18,802 67,115 18,608 18,355 22,601 22,426 23,599 526,245 Apr.14 33,412 215,338 32,881 33,741 25,323 18,338 66,790 20,470 18,433 23,504 22,391 24,348 527,544 Apr.20-21 33,350 206,040 32,101 33,981 25,142 18,411 66,141 20,447 18,290 24,110 22,667 24,797 519,707 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

254 FEDERAL RESERVE BULLETIN. MAY 1, 1916. Circulation of Federal Reserve notes at close of business on Fridays, Mar. 31 to Apr. 21, 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 i e s. - K C a i n t s y a . s Dallas, | i F S r a an n - T f o o t r al | cisco. system. Federal Reserve notes issued to the bank: Mar. 31 10,446 75,125 7,178 10,668 11,726 14,944 3,819 7,641 13,065 9,909 14,869 10,842 190,232 Apr.7.... 10,418 74,959 7,154 10,629 11,153 14,944 3 814 7,628 13,144 9,849 16,009 10,835 190,536 Apr.14 10,873 71,249 6,999 10,594 11,024 14,.81O 3,807 7,608 13,130 9,899 16,159 10,829 186,761 Apr. 20-21. 10,846 71,056 6,973 10,573 10,913 14,755 3,803 7,335 13,130 9,462 16,179 11,618 186,643 Federal Reserve notes in hands of bank: Mar. 31.. 1,111 14,325 116 352 931 1,231 1,537 980 1,170 58 27,166 Apr.7 719 10,384 172 375 284 1,083 1,557 1,025 1,128 157 17 5,318 22,219 Apr.14 1,137 10,480 138 398 1,062 1,587 869 1,178 91 13 5,310 22,526 Apr. 20-21 1,000 9,888 203 354 I 446 1,161 1,611 919 1,127 25 122 5,468 22,324 Federal Reserve notes in circulation: Mar.31 9,335 60,800 7,062 10,316 10,795 13,713 2,282 6,661 11,895 9>851 14,810 5,546 163,066 Apr.7..... 9,699 64,575 6,982 10,254 10,869 13,861 2,257 " -~ 12,016 9,692 15,992 5,517 168,317 Apr.14 9,736 60,769 6,861 10,196 10,761 13,748 2,220 6,739 11,952 9,608 16,126 5,519 164,235 Apr. 20-21 9,846 61,168 6,770 10,219 10,467 13,594 2,192 6,416 12,003 9,437 16,057 6,150 164,319 Gold and lawful money deposited with or to the credit of the Federal Reserve Agent: Mar.31. 10,446 75,125 7,178 10,668 6,856 13,944 3,819 7,641 13,065 ;,679 11,018 10,842 179,281 Apr.7 10,418 74,959 7,154 10,629 6,783 14,944 3,814 13,144 !,619 11,651 10,835 180,578 Apr.14 10,873 71,249 6,999 10,594 6,654 14,810 3,807 7,608 13,130 !,469 11,861 10,829 176,883 Apr. 20-21........... 10,846 71,056 6,973 10,573 6,293 14,755 7,335 13,130 L232 11,819 11,618 176,433 Carried to net assets: Mar.31 1,111 14,325 116 352 231 1,537 i 980 1,170 5,296 25,118 Apr.7 719 10,384 172 375 1,083 1,557 1,025 1,128 5,318 21,761 Apr.14 1,137 10,480 138 398 1,062 1,587 869 1,178 5,310 22,159 Apr. 20-21 1,000 9,888 203 354 1,161 1,611 I 919 1,127 21,731 Carried to net liabilities: Mar.31... 3,939 1,172 3,792 8,903 Apr.7 4 1,073 4,341 9,500 Apr.14 4',107 1,139 4,265 9,511 Apr. 20-21 4,174 1,205 4,238 9,617 Statement of Federal Reserve Agents' accounts at close of business on Fridays, Mar. 31 to Apr. .1,916. [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 - . 1 j K C a i n ty sa . s Dallas. F S r a a n n- T f o o t r al cisco. system. Federal Reserve notes: Received from Comptroller— Mar.31 19,380 109,240 15,480 13,360 17,000 20,400 9,380 9,600 19,000 13,000 20,780 11,360 277,980 A Ap p r r . . 1 7 4 2 2 0 0 , , 3 3 8 8 0 0 1 1 0 0 9 9 , , 2 2 4 4 0 0 1 1 5 5 , , 4 4 8 8 0 0 1 1 3 3 , , 3 3 6 6 0 0 1 17 7 , , 0 0 0 0 0 0 2 2 0 0 , , 4 4 0 0 0 0 9 9, , 3 3 8 8 0 0 9 9 , , 6 6 0 0 0 0 1 19 9 , >0 0 0 0 0 0 1 1 3 3 , , 0 0 0 0 0 0 2 2 0 0 , , 7 7 8 8 0 0 1 1 1 1 , , 3 3 6 6 0 0 2 2 7 78 8 , , 9 9 8 8 0 0 Apr. 20-21 20,380. 109,240 15,480 13,360 17,000 20,400 9,380 9,600 19,000 13,000 22,140 12,160 281,140 Returned to Comptroller— Mar.31 ,. 1,514 21,115 2,209 992 2,374 1,360 197 135 418 1,121 518 32,633 Apr.7..... 1,692 21,281 2,233 1,031 2,447 1,360 685 210 146 478 1,188 525 33,276 Apr.14 1,737 24,991 2,388 1,066 2,576 1,494 692 230 160 478 l',278 531 37,621 Apr. 20-21... 1,764 25,184 2,414 1,087 2,687 1,549 160 545 1,320 542 38,451 Chargeable to Federal Reserve Agent— Mar.31 17,866 88,125 13,271 12,368 14,626 19,040 8,700 9,403 18,885 12,582 19,659 10,842 245,347 Apr.7.. 18,688 87,959 13,247 12,329 14,553 19,040 8,695 9,390 18,854 12,522 19,592 10,835 245,704 Apr.14. 18,643 84,249 13,092 12,294 14,424 18,906 8,688 9,370 18,840 12,522 19,502 10,829 241,359 Apr. 20-21 18,616 84,056 13,066 12,273 14,313 18,851 8,684 9,097 18,840 12,455 20,820 11,618 242,689 In hands of Federal Reserve Agent- Mar. 31: 7,420 13,000 6,093 1,700 2,900 4,096 4,881 1,762 5,800 2,673 4,790 55,115 Apr.7 '. 8,270 13,000 1,700 3.400 4,096 4; 881 1,762 5,710 2,673, 3,583 55,168 Apr.14 7,770 13,000 1,700 3,400 4,096 4,881 1,762 5,710 2,823 3,363 54,598 Apr.2L 7,770 13,000 6,093 1,700 3,400 4,096 4,881 1,762 5,710 2,993 4,841 56,046 Issued to Federal Reserve Bank, net— Mar.31 10,446 75,125 7,178 10,668 11,726 14,944 3,819 7,641 13,065 i 14,869 10,842 190,232 Apr.7 10,418 74,959 7,154 10,629 11,153 14,944 3,814 7,628 13,144 I9,849 16,009 10,835 190,536 Apr.14 10,873 71,249 6,999 10,594 11,024 14,810 3,807 7,608 13,130 !9,699 16,139 10,829 186,761 Apr.20-21 10,846 71,056 6,973 10,573 10,913 14,755 3,803 7,335 13,130 !9,462 16,179 11,618 186,643 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MAY 1, 1916. FEDERAL RESERVE BULLETIN. 255 Statement of Federal Reserve Agents' accounts at close of business on Fridays, Mar. 31 to Apr, 21, 1916-— Continued. [In thousands of dollars.) Boston. Y N o e r w k. d P el h p i h la i - a. Chicago. L • o 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 . Amounts held by Federal Reserve Agent: In reduction of liability on outstanding notes- Gold coin and eertificates on hand— Mar. 31 9,885 71,398 3,360 9,720 2,850 10,050 4,100 9,5^0 120,883 Apr. 7.. 9,865 71,398 3,360 9,700 2,850 10,140 4,100 9,540 120,953 Apr. 14 10,365 67,918 3,360 9,700 2,850 10,140 3,950 9,540 117,823 Apr. 20-21.... 10,365 67,917 3,360 9,700 2,850 10,140 3,780 9,540 117,652 Credit balances in gold redemption fund- Mar. 31 581 3,727 458 948 326 994 409 351 665 479 708 272 9,918 Apr. 7 ; 553 3,561 434 929 353 994 404 388 654 619 751 265 9,905 Apr. 14 508 3,331 399 894 354 860 640 619 751 259 9,380 Apr. 20-21... 481 3,139 373 873 493 1,305 393 355 640 552 779 248 9,631 Credit balances , with Fed- ! eral Reserve Board- Mar. 31 3,360 6,530 12,950 i. 3,410 4,440 2,350 4,100 770 10,570' 48,480 Apr. 7 3,360 6,430 13,950 3,410 4,390 2,350 3,900 1,360 10,576 49,720 Apr. 14 3,240 6,300 13,950 3,410 4,390 2,350 3,900 1,570 10,570 49,680 Apr. 20-21... 3, 240 5,800 13,450 Z, 410. 4,130 2; 350 3,900 1,500 11,370 49,150 As security for outstanding notes- Commercial paper- Mar. 31 4,870 1,000 1,230 3,851 10,951 Apr. 7 .4.370 1,230 4,358 9,958 Apr. 14 4,370 1,230 4,278 9/878 Apr. 20-21... 4,620 1,230 4,360 10,210 Total- Mar. 31 10,446 75,125 7/178 10,668 11,726 14,944 3,819 7,641 13,065 9,909 14,869 10,842 190,232 Apr. 7. 10,418 74,959 7,154 10', 629 11,153 14,944 3,814 7,628 13,144 9,849 16,009 10,835 190,536 Apr. 14 10,873 71,249 6.999 10', 594 11,024 14,810 3,807 7,608 13,130 9.699 16,139 10,829 186,761 Apr. 20-21... 71,056 6,973 io; 573 10,913 14,755 3,803 7,335 13,130 9'. 462 16,179 11,618 186,643 Memorandum: 10,846 Total amount of commercial paper delivered to Federal Reserve Agent- Mar. 31... 5,008 1,000 1,245 3,927 11,180 Apr. 7. 5,151 1,237 4,382 10,770 Apr. 14 5,161 1,242 4,352 10,765 Apr. 20-21 1)239 4,487 10,725 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

256 FEDERAL RESERVE BULLETIN. MAT 1,1916. GOLD IMPORTS AND EXPORTS. Imports of gold, by customs districts, Jan. 1 to Apr. 21, 1916. [In thousands of dollars.] Week ending Mar. %!+• Ore and base bullion United States mint or assay office bars Bullion refined United States coin Foreign coin Total Week ending Mar. 81. Ore and base bullion. Bullion refined United States coin Foreign coin Total . Week ending Apr. 7. Ore and base bullion United States mint or assay office bars Bullion, refined Foreign coin Total Week ending Apr. 14. Ore and base bullion United States mint or assay office bars ; Bullion, refined United States coin Foreign coin Total Week ending April 21. Ore and base bullio n United States mint or assay office bars Bullion, refined United States coin.... Foreign coin Total Jan. 1 to Apr. 21. 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 67 270 605 942 23 183 206 33 350 1,328 1 711 114 390 3 530 1 037 296 315 87 170 868 725 5,350 99 20,206 26,380 .adirolF ....... ...... 33 33 .snaelrO weN 11 11 15 15 12 12 111 5 9 125 .anozirA 27 11 38 20 25 8 2 10 6 6 21 9 30 195 72 267 .osaP lE 4 4 7 7 63 27 90 .oderaL 8 8 14 14 3 3 73 73 .aksalA 1 1 1 1 .ocsicnarF naS 28 15 43 20 919 2,433 3,372 58 58 99 99 40 40 422 2,425 4,867 7,714 -ilaC nrehtuoS .ainrof 1 1 2 2 1 1 ...... 4 4 .notgnihsaW 65 3 68 24 24 47 57 104 87 6 93 14 14 942 343 50 1,335 .olaffuB 61 89 40 190 49 162 211 12 55 67 41 144 25 210 94 94 290 1,115 563 1,968 .atokaD 3 3 3 3 7 7 3 3 8 8 86 86 .nagihciM 34 34 12 12 49 49 58 58 30 30 571 571 .ecnerwaL .tS 20 20 27 11 «38 .latoT 308 89 337 23 605 1,362 165 1,269 1 2,433 3,868 227 12 466 1,328 2,033 408 144 416 9 530 1,507 421 94 324 87 170 1,096 3,479 1,115 8,784 215 25,093 38,686 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MAY 1, 1916. FEDERAL RESERVE BULLETIN". 257 Exports of gold, by customs districts, Jan. 1 to Apr. 21, 1916. [In thousand of dollars.] H M N a a a n e m i d w n p e - Y N o e r w k. P R o ic rt o o . A k l a a . s-Hawaii. c F S i r s a a c n n o - . i W ng a t s o h n - . f B a u lo f- . k D ot a a - . M ig i a c n h . - M t a a n n o d n a - r L e S n aw t c . e - . m V o e n r- t. Total. shire. Idaho, Week ending Mar. 24. United States mint or assay office bars 5 1 6 Bullion, refined domestic 16 5 5 1 27 United States coin 93 12 2,929 1 3,035 Foreign coin 300 300 Total 393 12 2,929 1 21 5 6 1 ' 3,368 Week ending Mar. SI. Ore and base bullion . ... 6 7 13 United States mint or assay office bars 500 1 501 Bullion, refined domestic 10 10 United States coin 206 393 3 602 Foreign coin .. 300 300 Total . 506 6 893 10 11 1,426 Week ending Apr. 7. Bullion refined domestic 537 8 1 546 United States coin 131 29 2 162 Foreign coin .. . 375 375 Total 1,043 29 8 3 1,083 Week ending Apr. 14. Ore and base bullion 2 2 United States mint or assay office bars . 50 50 Bullion, refined, domestic. 31 1 32 United States coin 88 81 169 Foreign coin .. . 500 500 Total.. . . 588 131 33 1 753 Week ending Apr. 21. Ore and base bullion „ 2 2 United States mint or assay office bars 50 2 52 Bullion, refined, domestic 1 10 1 12 United States coin... 175 5 33 1 214 Foreign coin 1,010 1,010 Total 2 1,186 5 83 12 1 1 1,290 Jan. 1 to Apr. 21. Ore and base bullion 2 11 63 61 137 United States mint or assay office bars 758 2,051 68 506 3,383 Bullion, refined: Domestic 2,702 701 1 98 1 12 13 7 3,535 Foreign 1,438 1,438 United States coin. 7,925 15 75. 7,044 7 9 2 1 1,012 750 16,840 Foreign coin 11,961 3 1,381 13,345 Total 2 24,784 15 11 75 9,796 71 236 3 15 1 2,912 757 38,678 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

INTERDISTRIGT MOVEMENT OF FEDERAL RESERVE NOTES, JANUARY 1 TO MARCH 31, 1916. to 00 Boston. New York. Philadelphia. Cleveland. Richmond. Atlanta. Eeceived Returned Received Returned Received Returned Received Returned Received Returned Received Returned from. to. from. to. from. to. from. to. from. to. from. to. Boston $712,000 $360,100 $43, $36,000 $2,785 $49,000 $3,340 $22,000 $6,905 New York $365,950 1682,000 549, 908,500 305,960 79,015 1,556,420 64,670 ,196,930 151,010 Philadelphia.. 33,380 43,000 924,500 545,000 58,280 7,670 175,715 16,455 59,620 10,870 Cleveland 2,785 36,000 79,015 299,700 7,<670 58,280 11,945 3,945 3,825 21,280 Richmond 3,340 49,000 64,670 1,537,450 16,-455 188,190 3,945 11,945 48,610 164,930 Atlanta 6,905 22,000 151,010 1,187,510 10,!870 59,620 21,280 3,825 164,930 48,610 Chicago 12,500 5,000 287,500 49,450 22,1000 4,970 101,000 3,730 69,000 410 . 105,000 3,385 St. Louis.. 2,900 5,000 65,325 118,400 4,:285 6,175 18,205 2,510 18,495 535 141,980 22,430 M Ka in n n sa ea s p C o i li t s y... 1 1, , 0 4 3 4 5 0 1 1 5 0 , , 0 0 0 0 0 0 3 1 1 2 , , 6 6 5 6 5 0 1 1 8 9 5 4 , , 2 7 0 0 0 0 1, 0 1 3 4 5 0 1 1 1 0 , , 6 9 9 1 0 0 3 7 , , 6 9 0 3 0 5 6 4 , ,2 0 2 6 5 0 4 3, , 2 2 6 0 5 0 9 6 8 7 0 5 4 7 , , 9 06 4 5 0 1 8 7 , , 8 7 6 40 5 Dallas. 715 19,000 19,965 417,450 V970 20,280 3,805 5,515 5,960 5,095 74,525 461,870 San Francisco. 2,975 7,000 37,730 257,800 155 6,480 5,690 780 4,870 195 6,740 2,960 Total. 433,925 893,000 2,386,030 5,152,760 659,560 1,308,475 565,700 128,070 2,063,800 144,910 1,671,235 872,245 Chicago. St. Louis. Minneapolis. Kansas City. Dallas. San Francisco. Total. Received Returned Received Returned ReceivedReturned ReceivedReturned ReceivedReturned ReceivedReturned Received Returned from. to. from. to. from. to. from. to. from. to. from. to. from. to. Boston $5,000 $12,500' $5,000 $2,900 115,000 $1,440 $10,000 $1,055 $19,000 $500 $7,000 $2,975 $923,000 $427,880 New York 50,210 287,500 121,290 65,325 185,200 31,655 203,900 11,660 411,000 17,965 246,140 37,730 5,192,980 2,337,030 Philadelphia.. 4,970 22,000 6,175 4,285 11,690 1,140 10,910 1,035 20,280 800 6,480 2,155 1,312,000 654,410 Cleveland..... 3,730 101,000 2,510 18,205 6,060 7,935 4,225 3,570 5,515 3,415 790 5,690 128,070 559,020 Richmond 410 69,000 535 18,495 675 4,200 980 3,705 5,095 4,650 195 4,870 144,910 2,056,435 Atlanta 3,385 105,000 22,430 141,980 8,865 4,940 17,740 7,065 419,480 59,525 2,960 6,740 829,855 1,646,815 Chicago 71,500 17,840 430, 500 14,380 298,500 2,145 214,500 1,190 64,500 2,760 1,676,500 105,260 St. Louis 17,840 71,500 36,195 4,290 320,145 24,185 385,020 30,280 8,530 2,670 1,018> 920 287,975 Minneapolis... 14,380 430,500 4,290 36,195 22,530 15,595 11,065 4,705 21,000 16,060 124,575 730,545 Kansas City... 2,145 298> 500 24,185 320,145 15,595 22,530 50,675 60,700 3,395 11,775 124,655 952,205 Dallas 1,190 214,500 32,270 385,020 4,705 11,065 65,700 50,595 2,930 14,670 212,735 1,605,060 SarfjFrancisco. 2,760 64,500 2,670 8,530 16,060 21,000 11,775 4,150 15,670 2,610 109,095 376,015 Total.... 106,020 1,676,500 292,855 1,018,920 730,545 124,575 966,405 124,760 1,557,300 363,920 108,095 11,797,295 11,738,650 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MAT 1, 1916. PEDBBAL RESERVE BULLETIN. 25$ CIRCULARS AND REGULATIONS. The Federal Reserve Board has issued the will be taken to afford these facilities as rapidly as possible. The Federal Reserve Banks will prepare a par list of all following circular on check clearing and colnonmember banks, to be revised from time to time, which lection: will be furnished to member banks. Immediate credit entry upon receipt subject to final CIRCULAR NO 1, SERIES OF 1916. payment will be made for all such items upon the books WASHINGTON, May 1,1916. of the Federal Reserve Bank at full, face value, but the proceeds will not be counted as reserve nor become avail- CHECK CLEARING AND COLIvEC.TJQN\ able to meet checks drawn until actually collected, in To Member Banks: accordance with the best practice now prevailing. The Federal Reserve Board is empowered, under section (2) Checks received by a Federal Reserve Bank on its 16 of the Federal Reserve Act, to require each Federal member banks will be forwarded direct to such member Reserve Bank to— 3 banks and will not be charged to their accounts until ad- " Exercise the function of a clearing house for its member vice of payment has been received or until sufficient time banks." has elapsed within which to receive advice of payment. After very thorough investigation and many conferences (3) In the selection of collecting agents for handlingwith the Governors of the Federal Reserve Banks on this checks on nonmember banks member banks will be given subject, the Federal Reserve Board has determined to the preference. exercise its authority and to offer to the member banks, (4) Under this plan Federal Reserve Banks will receive and through them to the public, the machinery of the at par from their member banks checks on all member Federal Reserve Banks for the operation of a check collec- banks, and on nonmember banks whose checks can be coltion and clearing system which it is believed, with the lected at par by any Federal Reserve Bank. Member cooperation of member banks, will afford a direct, expe- banks will be required by the Federal Reserve Board to ditious, and economical system of check collecting and provide funds to cover at par all checks received from, or settlement of balances. for the account of, their Federal Reserve Banks: Provided, The date for the inauguration of this system is expected however, That a member bank may ship lawful money or to be June 15, 1916, or as soon thereafter as the Federal Federal Reserve notes from its own vaults at the expense Reserve Banks can complete preparations for undertaking of its Federal Reserve Bank to cover any deficiency this work. which may arise because of and only in the case of inability Member banks in each district will in due course receive to provide items to offset checks received from or for the from their Federal Reserve Bank full information as to the account of its Federal Reserve Bank. terms and all necessary details of the arrangement, but for (5) Section 19 of the Federal Reserve Act provides that— the information of all concerned the general terms may be "The reserve carried by a member bank with a Federal stated to be as follows: Reserve Bank may, under the regulations, and subject to (1) In order that no inconvenience may be experienced, such penalties as may be prescribed by the Federal Rethe plan will follow as closely as practicable the practice serve Board, be checked against and withdrawn by such which long experience has developed between country member bank for the purpose of meeting existing liabilibanks and their reserve city correspondents. ties: Provided, however, That no bank shall at any time Each Federal Reserve Bank will receive at par from its make new loans or shall pay any dividends unless and member banks checks drawn on all member banks, whether until the total reserve required by law is fully restored." in its own district or other districts. It is also proposed It is manifest that items in process of collection can not to accept at par all checks drawn upon nonmember banks lawfully be counted as reserve either by a member bank when such checks can be collected by the Federal Reserve or by a Federal Reserve Bank. Therefore, should a mem- Banks at par. , ber bank draw against such items the draft would be Each Federal Reserve Bank will receive at par from charged against its reserve if such reserve were sufficient other Federal Reserve Banks checks drawn upon all mem- in amount to pay it; but any resulting impairment of ber banks of its district and upon all nonmember banks reserves would be subject to all the penalties provided by whose checks can be collected at par by the Federal Re- the Act. serve Bank. Inasmuch as it is essential that the law in respect to the It is the purpose of the Federal Reserve Board to have maintenance of required reserves by member banks shall the collection system developed so as to embrace the col- be strictly complied with, the Federal Reserve Board will lection of all checks on nonmember banks and private fix a penalty to be imposed upon member banks for enbanks, and while this can not be done immediately, steps croaching upon their reserves. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

260 FEDERAL RESERVE BULLETIN. MAY i, 1916. Member banks can at all times arrange to keep their as clearing houses for the clearing and collecreserves intact by rediscounting with their Federal Re- tion of checks for their members. In doing serve Bank. this the Federal Reserve Board has laid down (6) Each Federal Reserve Bank will determine by certain general principles, but has left it for analysis the amounts of uncollected funds appearing on its books to the credit of each member bank. Such analy- the executive officers of the Federal Reserve sis will show the true status of the reserve held by the Banks to work out the details. The Board Federal Reserve Bank for each member bank and will evidently recognizes the immense amount enable it to apply the penalty for impairment of reserve. of detail work that must be done in order to A schedule of the time required within which to collect put such a vast machinery into smooth operachecks will be furnished to each member bank to enable it to determine the time at which any item sent to its tion, and has set the time for beginning the Federal Reserve Bank will be counted as reserve and be- operation of the system as June 15. The come available to meet any checks drawn. important features of the plan are: (7) In handling items for member banks, *a Federal (1) The Federal Reserve Banks will accept Reserve Bank will act as agent only. It will require that at par all checks from member banks, w;hether each member bank authorize it to send checks for collection to banks on which checks are drawn, and, except for drawn against other member banks, nonnegligence, will assume no liability. Any further require- member banks, or private banks. An excepments that the Board may deem necessary will be set tion is made at the outset in the case of checks forth by the Federal Reserve Banks in their letters of drawn against nonmember banks which can instruction to their member banks. not be collected at par. (8) The cost of collecting and clearing checks must necessarily be borne by the banks receiving the benefit (2) All checks thus received from member and in proportion to the service rendered. An accurate banks will be given immediate credit entry, account will be kept by each reserve bank of the cost of although amounts thus credited will- not be performing this service and the Federal Reserve Board counted as reserves nor become available will, by rule, fix the charge, at so much per item, which until collected. may be imposed for the service of clearing or collection rendered by the reserve banks, as provided in section 16 (3) In order to enable member banks to of the Federal Reserve Act, know how soon checks sent in for collection CHAELES S. HAMLIN, will be available either as reserves or for pay- Governor. ment of checks drawn against them, time SHERMAN ALLEN, Assistant Secretary. schedules, giving the minimum time for collection, will be furnished by each Federal Reserve Bank to its member banks. Statement for the Press. (4) The actual cost, without profit, of the In connection with the distribution of the clearing and collection of checks will be paid circular on clearing, the Board gaye out by the Federal Reserve Banks and assessed ; April 29, 1916, the following statement to against the member banks in proportion to the press: their sendings. The Federal Reserve Board mailed this (5) The whole plan is based on generally morning to the Federal Reserve Banks for accepted principles under which clearing and distribution to all their member banks its collection plans have long been operated. A circular announcing a plan for country wide Federal Reserve Bank will not debit a member check clearing and collection. The salient bank's reserve account with items forwarded points of the circular are: to it for collection until the remittance of the The Federal Reserve Board, acting under the member bank, in payment of such items, shall authority of the Federal Reserve Act, has have had time to reach the Federal Reserve designated the Federal Reserve Banks to act Bank. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

INDEX. Acceptances, distribution of, by sizes, maturities, Informal rulings of the Board—Continued. etc - 249-251 Foreign bank branches in United States........ 224 Acceptances not subject to stamp tax 211 Bonds securing circulating notes 224 Attorney General, opinion of, re changing location Rediscounts of member banks 224 of Federal Keserve Banks 207-211 Intradistrict clearing system, additions to and with- Bank examinations, cost of 213,214 drawals from. 225 Business conditions throughout Federal Reserve Law department: districts 228-243 Negotiability of bills of exchange 226 Check clearing and collection, circular on 259 Maturity of farm-land loans 226 Commercial failures in 1916. 216 Bills of exchange under section 5200, Revised Commissioner of Internal Revenue, rujing as to Statutes..... 227 revenue stamps on acceptances ' 211 Rediscount of the assignment of open accounts. 227 Discount rates in effect- .•-....-. 216 Location of Federal Reserve Banks, opinion of Discounts, distribution of 244-248 Attorney General re changing. 207-211 Earnings and expenses of Federal Reserve Banks. 217-219 Meeting of governors of Federal Reserve Banks... 206 Federal Reserve Agents' accounts, statement of— 255 Member banks granted authority to accept up to 100 Federal Reserve Agents, meeting of 206 per cent 215 Federal Reserve Bunk statements 252-254 National banks, individual and bank deposits of. 222,223 Federal Reserve note issues 212 Resources and liabilities of Federal Reserve Federal Reserve notes, intradistrict movement of.. 258 Banks. 251-252 Fiduciary powers granted to member banks 225 State bank admissions to system 206 Gold imports and exports 256, 257 Three per cent bonds, sale of 215 Gold settlement fund.. 220-222 Trustee, executor, etc., applications to act as, ap- Governors of Federal Reserve Banks, meeting of... 206 proved - 225 Individual and bank deposits of national banks.... 222 "United States bonds to secure circulation, with- Chart showing 223 drawal of 215 Informal rulings of the Board: Work of the Board. 205 Clayton Act, interpretation of.... 224 o Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis