Federal Reserve Bulletin, 1916-06

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

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

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

TABLE OF CONTENTS. Page. Work of the Board ,... 261 Clearing and collection plan. 262 Wisconsin petition for transfer denied. 264 Sale of bonds through Treasurer of United States 264 New national-bank charters 265 Rediscounts by depositaries of Indian funds , 266 Fiduciary powers granted 266 Commercial failures during 1916 267 Gold settlement fund , 268 Informal rulings of the Board... 272 Law department 274 Business conditions throughout the 12 Federal Reserve districts 275 Distribution of discounts 293 Acceptances 298 Federal Reserve Bank statements. 301 Gold imports and exports 305 Earnings on investments of Federal Reserve Banks 307 Discount rates in effect? 308 IV Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FEDERAL RESERVE BULLETIN VOL. 2 JUNE 1, 1916 No. 6 WORK OF THE BOARD. Members of the Federal Reserve Board have participated in meetings of bankers' asso- The outstanding feature of the work of the ciations during the month as follows: May 18, Federal Reserve Board for the month of May Governor Hamlin addressed the Bankers7 has been the further development of the plan Club of Cleveland, Ohio, and on May 25 for the clearing and collection of checks, which visited the Atlanta Federal Reserve Bank, and was announced in the Federal Reserve Bulle- addressed the Georgia Bankers Association at tin of May 1. A statement of the mode of Macon, Ga., on May 26. Mr. Warburg deoperation of the new plan will be found else- livered an address before the Economic Club of where in this Bulletin. The further working New York on May 22. Mr. Miller visited the out of the details of the new plan is now in the Federal Reserve Bank of St. Louis on May 24, hands of the executive officers of the Federal and addressed the Missouri Bankers' Associa- Reserve Banks. The Board had hoped to tion and the St. Louis Clearing House Assoinaugurate the new system on June 15, but has ciation in connection with this visit. Mr. Wilfound it necessary to defer this for 30 days, or liams, the Comptroller of the Currency, deuntil July 15, 1916. Many inquiries have livered an address at the annual convention of been received by the Board concerning the the Tennessee Bankers' Association in Chatoperation of the plan, also both commenda- tanooga on May 19. tions and protests. On May 12 the Board Secretary McAdoo and Mr. Warburg regave a hearing to a committee of five, appointed turned to Washington Friday, May 5, from the by the executive council of the American trip which they took to South America with Bankers' Association at its Briarcliff meeting the United States section of the International on May 9 and 10. This committee, on behalf High Commission. Statements of the results of country banks, recommended a postpone- of the trip are not reprinted here^ as they ment of the date when the new clearing and were given wide publicity at the time. collection plan should go into effect, in order Members of the Federal Advisory Council to give member banks as much time as possible met in Washington May 16 for their quarterly to adapt themselves to the conditions soon to meeting. The meeting was attended by eleven be created. members, all districts except Kansas City The Board devoted much of its time in the being represented. Those present were: Mr. early part of May to perfecting and explaining J. B. Forgan, Chicago; Mr. Daniel G. Wing, amendments to .the Federal Reserve Act now Boston; Mr. J. P. Morgan, New York; Mr. pending before Congress. It is anticipated Levi L. Rue, Philadelphia; Mr. W. S. Rowe, that early action will be taken by Congress Cleveland; Mr. J. W. Norwood, Richmond; Mr. upon the Board's recommendations. Charles A. Lyerly, Atlanta; Mr. Frank O. The discount rates for commodity paper in Watts, St. Louis; Mr. C. T. Jaffray, Minnethe Minneapolis and Atlanta districts have apolis; Mr. T. J. Record, Dallas; Mr. Herbert been increased in May from 3 to 3J per cent. Fleishhacker, San Francisco. A joint session Otherwise the discount rates effective in the of the Federal Reserve Board and the Council 12 districts remained unchanged. was held on May 16, at which the Council gave 261 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

262 FEDEKAL EESEEVE BULLETIN. JUNE 1, 1916. its replies to questions propounded by the On May 12 a hearing was given by the Board Boerd and expressed its views on subjects to members of a committee appointed by the initiated by it. Among the topics which re- executive council of the American Bankers' ceived the .attention of the Council were the Association at its meeting at Briarcliff, N. Y. reserve situation in the different districts, dis- The members of the committee were: Mr. W. count rates, and the prevailing business H. Bucholz, Omaha, Nebr.; Mr. John Meconditions. Business conditions were reported Hugh, New York City; Mr. W. H. Webb, San by members of the Council as varying from Angelo, Tex.; Mr. Walker Broach, Meridian, "something over normal" to ua greater Miss.; Mr. J. Elwood Cox, High Point, N. C. activit}^ than was ever before known/' except Each member of the committee expressed his that on the Pacific coast, the report showed less views to the Board and there was general disexceptional conditions, although the mining cussion. and lumber industries were reported as showing The check clearing and collection plan which marked activity. Excellent reports of crop has been formulated by the Federal Reserve conditions were made, with some qualifica- Board is not compulsory upon any bank so far tion as to the crop outlook for wheat in the as the use of facilities to be provided is con- Northwest, and grain and fruit crops in Cali- cerned. fornia. Member banks, as long as they comply with A general conference of the Federal Keserve the statutory requirements, may continue to Agents with the Federal Reserve Board, carry accounts with their approved reserve which began Monday, May 29, is now in agents and with other banks to whom they progress. may send items for collection and from whom they may receive, for similar purposes, checks Clearing and Collection. drawn upon themselves or upon other banks. They will, however, be required to pay with- After consultation by wire with the govern- out deduction checks drawn upon themselves ors of the 12 Federal Reserve Banks, the Fed- and presented at their own counters for payeral Reserve Board on May 22 voted unani- ment. Remittance of such checks by the mously to defer the inauguration of the new Federal Reserve Bank of their district through clearing and collection plan to July 15. It was the mail will be construed as presentation at found that this was the earliest date at which their own counters and they must settle with it was possible for the Federal Reserve Banks the Federal Reserve Bank for such checks, either to be prepared to make the plan actually opera- by acceptable checks upon other banks or by tive in all districts. remittance of lawful money or Federal Reserve It had been suggested that the development notes at the expense of the Federal Reserve of the plan might be undertaken by two or Bank. Checks drawn upon a member bank three successive steps. This the Board con- which have been received by the Federal Residered undesirable, and the plan will ^become serve Bank will not be charged against its generally effective on July 15. reserve account until sufficient time has elapsed Many letters commending the plan have been for the checks to have reached the member bank received by the Board from widely separated and for returns to have been received in due sections of the United States. These have course by the Federal Reserve Bank. come from 21 different States, and in many The Board's clearing plan provides that a instances represent the views of large business small service charge (say 1 \ to 2 cents per item) associations. Up to May 22 but a few letters will be made at stated intervals against such of protest had been received. banks as send to the Federal Reserve Bank Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

JUNK 1,1916. FEDERAL EESEBVE BULLETIN. 268 checks on other banks for collection and credit; except balances in Federal Reserve Banks, but it follows that no portion of this charge and therefore after that time any necessity to can be assessed against any bank unless it maintain nonreserve balances with correspondshall have elected to avail itself of the facilities ents, either for exchange purposes or in order offered. Federal Reserve Banks will handle, to obtain collection facilities, would be deemed besides checks drawn on member banks, checks in many cases a great hardship. It is believed on such State banks as can be collected at par, that in numerous instances banks will find it and member banks desiring to handle for a expedient to concentrate their balances and to Federal Reserve Bank checks drawn on State close many of the accounts which they now banks, will be given the preference. During carry with other banks, and that a system crop-moving periods it is thought that this which will enable them to send all of their will be a distinct advantage to member banks. checks on other banks to the Federal Reserve There is no disposition to deprive member Banks for exchange purposes or as an offset banks of any income that they may have been against checks on themselves forwarded by the Federal Reserve Bank, will, in course of time, in the habit of receiving from the collection of come to be appreciated as a convenience. The drafts (other than bank checks) or from the release of funds heretofore tied up in accounts purchase or discount of commercial bills of excarried with other banks and their employment change, and so there should be no diminution at higher rates of interest in commercial loans, in the customary profits of member banks from should offset to a great degree the prospective such sources. loss of exchange profits which is at the present Many letters in regard to the plan have been time looked upon with apprehension by some received, a great number of which are comof the banks. mendatory, and it appears from those of oppo- Replying to an inquiry as to whether the site tenor that the objections raised are based proposed clearing and collection plan was upon an apprehension that profits will be demandatory, Gov. Hamlin sent, on May 12, the creased if the plan proves to be effective. following telegram: It is estimated that as soon as the new clearing system is put into operation checks upon No compulsion on member banks to collect any checks through Federal Reserve Bank. about 15,000 national banks, State banks, and Can use present correspondents if preferred. trust companies throughout the United States Only requirement is that member banks must can be handled by the Federal Reserve Banks remit without deduction in funds satisfactory to at par, subject to the small service charge above Federal Reserve Bank for checks on them sent referred to; and as a minority of the banks will them for collection by Federal Reserve Bank. Whenever banks unable to offset by remitting find it difficult to retain much of their good checks, lawful money or Federal Reserve notes business when checks drawn upon them are at may be remitted at expense of Federal Reserve a discount while checks drawn upon the ma- Bank. jority of banks can circulate at par, it is thought In reply to another inquiry the following that in the near future checks upon practically explanation was made: all banks throughout the United States can be In answer to several inquiries inclosed with handled at par hj Federal Reserve Banks. your letter I beg to say that there is no inten- Many banks have found it necessary hitherto tion on the part of the Board to compel country to scatter their available funds by maintaining banks to do exchange business at a loss. If we correctly understand the law, it contembalances with a number of correspondents for plates: exchange purposes, or in order to control checks (1) That the Federal Reserve Banks, in view drawn upon themselves. of taking over the reserves formerly held in After November 16, 1917, no bank balances reserve centers, should also take over the duty will be available as reserve for national banks of acting as clearing houses for their members, Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

264 FEDERAL BESEBVE BULLETIN. JUNE 1, 1916. and that they should perform this service at to the rights of the signers thereof to file an cost. amended petition at a later date. The order (2) There is no obligation on any bank to use follows: the facilities of the Federal Reserve Bank for the clearing or collection of checks that it may Upon consideration of the petition of certain receive from its customers, and it will only be banks in Wisconsin that the geographical charged for such checks as it sends for collec- limits of districts Nos. 7 and 9 be modified so tion the bare cost of collection, which is now as to include in districts No. 7 a part of the terestimated at 1J cents per item. However, ritory now included in district No. 9, and every member bank is under the obligation After a full investigation of the matter the of meeting at par at its own counter any checks Federal Reserve Board has arrived at the consent in by other member banks and drawn clusion that there is no present necessity for against it. any change in the geographical limits of the (3) Under these rules a member bank is not said districts Nos. 7 and 9 at this time. put to any expense of shipping currency, be- It is ordered that said petition be dismissed cause, if it has no offsetting checks to remit, without prejudice to the rights of the signers it must send exchange or currency, but, in to file an amended petition at a later date. the latter case, only at the expense of the In a letter sent out by order of the Board to Federal Reserve Bank. (4) The Federal Reserve Board has not yet all parties in interest, it was stated that the laid down any rule as to what charges a bank Board had reached the conclusion that it would may make against its customers, but there is not be justified in making any alterations-in no intention at all that a member bank shall the two districts at this time. If future develcollect its customers' checks at a loss to itself. opments should indicate necessity for a change, If, however, we are able to greatly reduce the cost to each member bank of collecting its it was stated that at a later date consideration items, we believe it is our duty to see that the would again be given to the matter. The letter benefit of that reduced cost shall inure to the went on to say that the Board was hopeful that customer, and that he shall have the benefit results under thfe new clearing system would of this service at approximately the total net make a transfer unnecessary. Attention was cost. However, it is not proposed in this connection to undertake to regulate charges particularly called in the letter to the fact that made by member banks for the collection of if the Board had granted the petition as filed, drafts, nor upon commercial bills of exchange those banks located in that portion of the including those drawn against cotton, grain, Minneapolis district embraced within the Upper etc., for the reason that the Board has assumed Peninsula of Michigan would have been isothat the language of the act specifically refers only to check clearing, and not to the collection lated and cut off from the rest of the district. of bills, notes, drafts, etc. This fact, it was pointed out, would have to be taken into consideration if, at some future date, an amended petition were filed for modifi- Wisconsin Petition Denied. cation of the district lines. After a full investigation, the Federal Reserve Board has reached the conclusion that Sale of Bonds Through Treasurer of United there is no present necessity for a transfer of States. any of the members bank in the State of Wisconsin from the Federal Reserve District of Section 18 of the Federal Reserve Act author- Minneapolis to the Federal Reserve District of izes national banks desiring to retire their cir- Chicago. The question was raised in a peti- culation to file an application with the Treastion submitted by certain Wisconsin banks urer of the United States to sell the United who argued that their natural gateway was States bonds securing the circulation to be re- Chicago rather than Minneapolis. In an order tired. It is provided that bonds offered for entered by the Federal Reserve Board on May sale in this manner shall be purchased by the 25 the petition is dismissed without prejudice various Federal Reserve Banks in a sum not to Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

JUNE 1,1916. FEDERAL RESERVE BULLETIN. 265 exceed in the aggregate $25,000,000 in any one New National Bank Charters. year. The Act provides, however, that Federal NET INCREASES IN CAPITALIZATION — PEEIOD Reserve Banks may also buy United States NOVEMBER 16, 1914, TO DECEMBER 31, 1915. bonds in the open market, and that bonds bought in that manner shall be deducted from Increases and reductions in the number of the amount which each bank may be required national banks and the capital of national to buy from member banks through the Treas- banks during the period from November 16, urer. 1914, date of the inauguration of the Federal Inasmuch, therefore, as the 12 Federal Re- Reserve System, to December 31, 1915, were: serve Banks have already bought in the open market more than $25,000,000 of bonds bearing Banks. New charters issued to. 155 the circulation privilege, they cannot, under With capital of $9,974,500 the terms of the law, be required to buy any Increase of capital approved for 104 more of such bonds through the Treasurer dur- With new capital of 14,797,700 urer during this calendar year. Aggregate number of new charters and The Federal Reserve Board suggests, therebanks increasing capital 259 fore, that member banks should not file any With aggregate of new capital authormore applications with the Treasurer for the ized 24,772,200 sale of their bonds during the calendar year of 1916. Number of banks liquidating (other than those consolidating with other national It is proper to state, however, that the fact banks) 56 that Federal Reserve Banks can not be required Capital of same banks 5,125,000 to purchase any more United States bonds from Number of banks reducing capital 20 member banks in that manner during 1916 does Reduction of capital 2,070,000 not in any way affect their right to purchase Total number of banks going into liquidasuch bonds, to any extent they deem advisable, tion or reducing capital (other than those in the open market whether from member consolidating with other national banks) 76 banks or otherwise. Aggregate capital reduction 7,195,000 The foregoing statement shows the aggregate of increased capital for the period was 24,772,200 Against this there was a reduction of capital Acceptances to 100 Per Cent. owing to liquidations (other than for consolidation with other national banks) and Since the last list of banks authorized to reductions of capital of .... 7,195,000 accept drafts or bills of exchange up to 100 per Net increase 17,577,200 cent of their capital and surplus under the Federal Reserve Act was printed the following During this period there were 21 national banks have been granted this privilege: banks with an aggregate capital of $2,210,000 National City Bank, New York City; National placed in the hands of receivers, and 6 national Bank of Commerce, New York City; Mer- banks with an aggregate capital of $450,000 chants National Bank, Worcester, Mass.; Old were restored to solvency and reopened. Colony Trust Co., Boston, Mass.; Harriman PERIOD JAN. 1, 1916, TO MAY 26, 1916. National Bank, New York City. All member banks may, without special per- The Comptroller of the Currency reports the mission, accept to 50 per cent of their capital following increases and reductions in the numand surplus. ber of national banks, and the capital of na- 43265—16 2 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

266 FEDEEAL RESEBVE BULLETIN. JUNE 1, 1916. tional banks during the period from January 1, April 9 1913, so that the procedure of the de- ; 1916, to May 26, 1916: partment might conform to the Federal Reserve Banks. Act. A letter recently sent out conveying this New charters issued to 49 information to the Federal Reserve Bank mak- With capital of $2,555,000 ing the inquiry is given below: Increase of capital approved for ... 50 With new capital of.... 3,747, 500 With further reference to the subject of your letter of March 30 calling the Board's attention Aggregate number of new charters and to a ruling of the Interior Department of April banks increasing capital 99 9, 1913, under which no bank that rediscounted With aggregate of new capital authorized^. .' 6, 302 500 any of its paper would be eligible as a deposi- ? tary for Indian funds, I beg to advise you that Number of banks liquidating (other the Interior Department informs me that uthe than those consolidating with other rediscount feature of the Federal Reserve Act national banks) 43 was given particular consideration over a year Capital of same banks. 3, 773,000 ago by this department in connection with the Number of banks reducing capital 8 rule relating to borrowed money, and as a result Reduction of capital 287, 500 the rule was discontinued;" and that" no bank is now rejected as a depositary simply because Total number of banks going into liq- it has borrowed money, but any applicant bank uidation or reducing capital (other whose borrowings appear excessive is expected than those consolidating with other to furnish a satisfactory explanation of the national banks) 51 necessities therefor.77 Aggregate capital reduction 4,060,500 I trust that this disposition of the matter will be satisfactory to you and to any of your mem- The foregoing statement shows the aggregate of ber banks which felt themselves under a disaincreased capital for the period was 6,302, 500 bility in dealing with their Federal Reserve Against this there was a reduction of capital Bank because of the ruling of the Interior Deowing to liquidations (other than for consoli- partment promulgated in 1913. dation with other national banks) and reductions of capital of 4,060,500 Net increase 2,242,000 Fiduciary Powers. During this period there were 5 national Applications from the following banks for banks with an aggregate capital of $400,000 permission to act under section 11 (k) of the placed in the hands of receivers; and 2 national Federal Reserve Act have been approved by the banks with an aggregate capital of $80,000 Federal Reserve Board since the issue of the were restored to solvency and reopened. May Bulletin, as follows: DISTRICT NO. 7. Rediscounts by Depositaries of Indian Funds. Trustee, executor, administrator, and registrar of stocks Answering an inquiry submitted by one of and bonds: the Federal Reserve Banks, the Department of Cedar Rapids National Bank, Cedar Rapids, Iowa. the Interior has informed the Federal Reserve DISTRICT NO. 10. Board that no bank is rejected as a depositary for Indian funds simply because it has borrowed Trustee, executor, administrator, and registrar of stocks and bonds: money in the form of rediscounts. It appears National Bank of Sabetha, Sabetha, Kans. that a modification of the ruling of the Interior Trustee, executor, and administrator: Department in this connection was made on Exchange National Bank, Colorado Springs, Colo. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

JUNE 1,1916. FEDERAL RESERVE BULLETIN. 267 Intradistrict Clearing System. offset by-.substantial improvement in all other districts. Although April failures showed an Additions to and withdrawals from the increase of four as compared with January in intradistrict clearing system since the publicathe tenth district, the contraction in the retion of lists in previous issues of the Bulletin maining .eleven districts was so pronounced are as follows: that the falling off in the total for April from DISTRICT NO. 5. January was 610. Withdrawal: Union National Bank, Columbia, S. C. Liabilities, which are of less relative importance than numbers, owing to the fact that DISTRICT NO. 6. Withdrawal: they may be considerably expanded by a few First National Bank, Cornelia, Ga. large failures, show April's total exceeding that of January in the first, third, seventh, DISTRICT No. 7. Additions: and tenth districts. The very marked im- Waxikegan National Bank, Waukegan, 111. provement in the second district alone more State National Bank, Mattoon, 111. than counterbalanced these figures, and there DISTRICT NO. 8. were also extremely favorable comparisons Addition: made by the remaining districts. The figures First National Bank, Newton, 111. in detail follow: Withdrawal: First National Bank, Mayfield, Ky. January. February. Business Failures* by Reserve Districts. Districts. Number. Liabilities. Number. Liabilities. Commercial failures during the first four months of 1916 in the 12 Federal Reserve First 191 $1,645,500 137 $1,348,200 Second 329 8,810,900 298 4,194,990 districts in which they occurred, as compiled T F h o i u r r d th 1 1 2 8 0 3 1,4 9 4 8 2 8, , 2 9 4 5 0 0 1 12 3 7 8 1,2 8 3 9 7 4 , ,5 2 0 5 0 0 from the records of R. G. Dun &-.Co., indi- Fifth 171 1,427,400 139 1,138,600 Sixth 186 2,490,200 157 2,224,850 cate that improvement has been progressive, Seventh 209 2,986,600 185 2,253,800 Eighth . 141 1,475,000 130 978,075 month by month, and remarkably uniform. Ninth 66 988,400 62 527,670 Tenth . . . 75 350,900 65 558,010 The total number of suspensions in all *dis- Eleventh 129 1,292.696 88 1,212,720 Twelfth 229 1,984; 500 162 2,177,500 stricts in January numbered 2,009; in Feb- Total, 1916 2,009 25,863,286 1,688 18,744,165 ruary, which was a short month, 1,688; in 1915. 2,848 49,640,575 2,278 32,404,630 1914.... 1,857 39,374,347 1,505 22,354,193 March, 1,690, and in April, 1,399, while the 1913.... 1,814 22,972,769 1,454 28,141,258 amounts involved were, respectively, $25,863,- March. April. 286, $18,744,165, $16,885,295, and $18,382,637. Districts. Examination of the different districts by Number. Liabilities. Number. Liabilities. months shows that improvement was general, for while the number was larger by two in First 162 $1,126,319 117 $1,865,387 Second 318 3,762,231 243 4,112,886 March than in February, owing to increases Third 103 1,054,934 97 1,883,363 Fourth 126 856,829 90 1,145,629 in the first, second, sixth, seventh, and twelfth Fifth 113 890,399 85 811,502 Sixth 167 2,192,100 163 1,596,744 districts, the liabilities were smaller in every Seventh 193 1,857,144 173 3,477,658 Eighth 121 738,291 64 548,185 instance except in the tenth and twelfth dis- Ninth 52 478,213 56 407,975 Tenth 69 905,785 79 645,268 tricts. While there were two more failures in E Tw le e v l e ft n h t h . . 19 7 4 2 2,2 8 2 0 1 3 , , 3 7 3 1 6 4 15 8 2 0 1,0 8 2 6 3 5 , , 0 00 4 0 0 the ninth district during April than in March, Total, 1916 1,690 16,885,295 1,399 18,382,637 ten more in the tenth and eight more in the 1915 2,090 23,658,130 2,063 43,517,870 1914 1,464 21,493,28(3 1,336 20,549,144 eleventh, these increases were far more than 1913 1,190 25,718,250 1,314 18,445,355 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

RESERVE BULLETIN. JUNE 1,1916. GOLD SETTLEMENT FUND. ing operations of the fund, but the actual shipment of even the relatively small balance has Since the gold-settlement fund has now been been entirely avoided. With the aid and coin operation for one year, it may be interesting operation of the Treasury Department, it has to review briefly the more important features been possible to have any Federal Reserve of its operations. The primary object for Bank becoming debtor to another bank merely which the fund was established was the settle- make deposit with the nearest subtreasury ment of obligations arising among the 12 Fed- (six Federal Reserve cities have sub treasuries), eral Keserve Banks, and the extent of its oper- and gold certificates have been issued at Washations of this kind may be measured by the ington payable to the order of the Federal total amount of weekly clearings and transfers. Reserve Board, to be held in the gold settle- These have amounted since May 20, 1915, to ment fund. On the other hand, whenever a $2,178,240,000, almost half of this amount hav- Federal Reserve Bank has need of funds to its ing been handled since the beginning of the credit the operation has been reversed and present year. The weekly settlements and payment made by the nearest subtreasury. transfers which at first averaged approximately Such withdrawals have been relatively small $20,000,000, have steadily increased. For each in volume and the major portion of the gold of the last four weeks they exceeded $60,000,000 paid into the fund has been permitted to and for the week ending May 25 were close to remain. $80,000,000. It is expected that with the more Under the abnormal conditions prevalent active clearing operations by Federal Reserve during the past year seasonal movements of Banks, which are to begin July 15, the amounts currency in the United States have been much settled each week will in all probability be con- deranged and the usual ebb and flow has not siderably increased. taken place. Large imports of gold have The most important function of the fund has reached New York City, very substantial porbeen to obviate unnecessary shipments of gold tions of which had as their ultimate destination currency between the various sections of the the various industrial and agricultural centers, country. The first step in such a process is, from which had gone the exports of commodiof course, to offset and cancel by clearing as ties. Through this movement and through many obligations and of as large amount as the call on New York City banks for funds to possible, and this the Federal Eeserve Banks make payments due from member banks have accomplished and will to a still greater throughout the country on account of installdegree accomplish through the gold settlement ments of reserve deposits with the Federal fund. The result of the clearing process thus Reserve Banks, a condition was created which, far has been that for $2,178,240,000 of obliga- without the gold settlement fund, would untions settled, there has remained only a net doubtedly have occasioned large and expensive balance of $144,288,000, or 6.62 per cent, to domestic gold shipments from New York. be paid by transfer of ownership of the gold Through the operation of the gold settlement certificates held. Not only has the net amount fund the same end has been accomplished at necessary to be covered by payment of gold almost negligible expense by the Federal Reor its equivalent been minimized by the clear- serve Bank of New York depositing gold with Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

JUNE 1, 1916. FEDERAL BESEBVE BULLETIN. 269 the Subtreasury for credit in the gold settle- Amount of clearings and. transfers, Federal Reserve Banks, from Apr. 21, 1916, to May 25, 1916, inclusive. ment fund and transferring the credit thus acquired to other Federal Reserve Banks. cle T a o r t i a n l gs. Balances. Transfers. During the year almost $126,000,000 has in this way been transferred from New York to Settlement of— other centers. Apr. 27, 1916 $56,252,000 $4,027,000 ,16,204,000 May 4,1916 65,804,000 5,905,000 2,974,000 An important service rendered to Federal M M a a y y 1 1 8 1 , , 1 1 9 9 1 1 6 6 6 6 4 6 , , 1 4 2 8 0 9 , , 0 0 0 0 0 0 1 4 1 , , 6 8 3 7 2 9 , , 0 0 0 0 0 0 1 4, , 0 3 9 1 0 6 , , 0 0 0 0 0 0 Reserve Banks, and through them to member Mav 25, 1916 77,816,000 14,571,000 2,000,000 banks, has been the making of deposits with Total 330,481,000 31,014,000 16,584,000 Previously reported 795,110,000 90,116,000 29,857,000 the Treasurer of the United States for various Total since Jan. 1,1916... 1,125,591,000 121,130,000 46,441,000 purposes, particularly for the release and trans- Total for 1915 1,052,649,000 fer to Federal Reserve Banks of United States Total for period May 20, bonds securing national bank-note circulation. 1915, to May 25,1916....2,178,240,000 Changes in ownership of gold. To Apr. 20,1916. From Apr. 21,1916, to May 25,1916.* Total change from May 20, 1915, to May 25,1916.2 Federal Reserve Bank of— Balance to credit Apr. Decrease. Increase. 2 n 0 e , t 1 9 d 1 e 6 p , o p s l it u s s Ma B y a 2 la 5 n ,1 c 9 e 16. Decrease. Increase. Decrease. Increase. of gold, since that date. Boston, $3,887,000 $9,617,000 $11,881,000 $2,264,000 $6,151,000 New York.... $104,573,000 23,427,000 2,045,000 $21,382,000 $125,955,000 Philadelphia. 18,030,000 4,510,000 13,381,000 8,871,000 26,901,000 Cleveland 6,159,000 6,569,000 11,217,000 4,648,000 10,807,000 Richmond 11,209,000 11,729,000 13,392,000 1,663,000 12,872,000 Atlanta 12,099,000 2,489,000 4,714,000 2,225,000 14,324,000 Chicago 6,451,000 12,759,000 877,000 11,882,000 18,333,000 St. Louis 9,659,000 5,219,000 4,419,000 800,000 8,859,000 6,243,000 4,643,000 4,711,000 68,000 6,311,000 Kansas City... 8,804,000 3,221,500 7,537,500 4,316,000 13,120,000 Dallas 15,183,000 9,515,500 9,032,500 483,000 14,700,000 San Francisco. 19,751,000 '-4,389,000 6,103,000 10,492,000 30,243,000 Total. 111,024,000 111,024,000 89,310,000 89,310,000 34,547,000 34,547,000 144,288,000 144,288,000 1 Changes in ownership of gold during period Apr. 21,1916, to May 25,1916, equal 9.95 per cent of obligations settled. 2 Total changes in ownership of gold equal 6.62 per cent of obligations settled. 3 Withdrawals have exceeded balance and deposits. Summary of transactions, Apr. 21 1916, to May 25, 1916. y Balance Gold. Transfers. Settlement of Apr. 27,1916. Apr. 27, last 1916, bal- Federal Reserve statement, ance m Bank of— A 1 p 9 r 1 . 6 2 . 0, d W ra i w th n - . Deposited. Dobit. 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 r a in ft g e . r Boston $9,617,000 $750,000 $593,000 $6,861,000 $6,268,000 $9,774,000 New York 3,427,000 $1,000,000 2,302,000 540,000 13,877,000 13,337,000 4,189,000 Philadelphia 6,240,000 $2,000,000 1,000,000 7,502,000 7,784,000 $282,000 5,522,000 Cleveland 8,159,000 460,000 """250,'666' 1,337,000 1,604,000 267,000 7,716,000 Richmond 10,679,000 '"mo',bbo 970,000 '"i,*i98,"666" 8,040,000 6,842,000 8,621,000 Atlanta 2,489,000 42,000 1,203,000 1,751,000 548,000 3,079,000 Chicago 9,659,000 1,500,000 784,000 1,379,000 8,915,000 7,536,000 7,564,000 St. Louis 5,039,000 326,000 290,000 6,463,000 6,173,000 5,075,000 Minneapolis 4.643,000 4,000 27,000 126,000 99,000 4,612,000 Kansas City 3,701,500 500,000 1,639,000 2,743,000 1,104,000 4,305,500 Dallas 9,715,500 200,000 1,230,000 142,000 466,000 324,000 8,609,500 San Francisco.... 3,141,000 3,800,000 750,000 "i," 666 ,'666' 147,000 1,649,000 1,502,000 1,093,000 Total 76,510,000 6,460,000 110,000 6,204,000 6,204,000 4,027,000 56,252,000 56,252,000 4,027,000 70,160,000 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

270 FEDEEAL RESERVE BULLETIN, JUNE 1,1916. Summary of transactions, April 21, 1916, to May 25, 1916—Continued. Balance Gold. Transfers. Settlement of May 4,1916. May .4, last 1916, bal- Federal Reserve statement, ance in Bank of— A 1 p 9 r 1 . 6 2 . 7, 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 c n le d a ri a n f g te . r Boston $9,774,000 $6,688,000 $7,132,000 $444,000 $10,218,000 New York 4,189,000 $5,000,000 $1,400,000 $1,050,000 $337,000 15,593,000 15,256,000 8,502,000 Philadelphia 5,522,000 130,000 24,000 9,653,000 10,363,000 710,000 6,386,000 Cleveland. 7,716,000 $1,030,000 '1,512', 000 1,710,000 198,000 6,884,000 Richmond.. I..."....-. 8,621,000 100,000 260,000 500,000 8,213,000 9,635,000 1,422,000 9,703,000 Atlanta 3,079,000 150,000 2,359,000 2,209,000 2,929,000 Chicago 7,564,000 1,000,000 500,000 4,693,000 12,469,000 7,776,000 3,371,000 St. Louis 5,075,000 100,000 200,000 ""'566; 666' 353,000 6,640,000 6,287;000 ••4,922,000 M Ka in n n s e a a s p C ol i i t s y 4 4 , , 6 3 1 0 2 5 , , 0 5 0 0 0 0 270,000 30,000 372,000 . 2 ,15 6 1 6 /, . 0 0 0 0 0 0 •1, 2 7 0 7 4 9 , , 0 0 0 0 0 0 138,000 4 3 , , 7 6 5 9 0 3 , , 0 5 0 0 0 0 Dallas 8,609,500 374,000 329,000 711,000 382,000 8,617,500 San Francisco 1,093,000 2,340,000 1,400,000 131,000 2,742,000 . 2,611,000 2,764,000 Total 70,160,000 3,840,000 6,420,000 2,974,000 2,974,000 5,905,000. 65,804,000 65,804,000 5,905,000 72,740,000 Balance Gold. Transfers. Settlement of May 11,1916. 1 M 91 a 6 y , b 1 a 1 l , - Fed B e a ra n l k R o e f s — erve * m la 4 e s , t n 1 t s 9 t 1 M a 6 t a e . y - d W ra i w th n - . D i e te p d o . s- Debit. Credit. de N b e i t ts. d T e o b t i a ts l . c T re o d t i a t l s, cr N ed e i t ts. f c u a l n e n d a c r e i a n i f n t g e . r "Boston $10,218,000 $279,000 $8,717,000 $8,438,000 $9,939,000 New York 8,502,000 $1,100,000 1,929,000 17,283,000 15,354,000 7,673,000 C Ph le i v la e d la e n l d phia... 6 6 , , 3 8 8 8 6 4 , , 0 0 0 0 0 0 $50,000 $1,000,000 317,000 8 1 , , 1 5 8 6 0 2 , , 0 0 0 0 0 0 9 1 , . 3 2 2 4 4 5 , , 0 0 0 0 0 0 $1,144,000 7 5, , 5 5 1 3 7 0 , , 0 0 0 0 0 0 Richmond 9,703,000 100,000 ""$4i6,"666* 7,782,000 8;541,000 759,000 10,772,000 2,929,000 183 000 1,900,000 2,029,000 129,000 2,875,000 Chicago 3,371,000 33,000 1,686,000 10,736,000 9,050,000 1,718,000 St. Louis 4,922,000 100,000 183,000 320,000 5,833,000 5,513,000 4,685,000 IVTiTiTiGa Dolis 4 750 000 101,000 205.000 104,000 4,649,000 Kansas City 3,693,500 240,000 1,574', 000 2,461,000 887,000 4,340,500 Dallas 8,617,500 33,000 218,000 824,000 606,000 9,190,500 San Francisco ... 2,764,000 "i," 4o6," 666" 130,000 1,237,000 1,107,000 2,471,000 Total 72,740,000 1,790,000 410,000 1,316,000 1,316,000 4,632,000 64,120,000 64,120,000 4,632,000 71,360,000 Federal Reserve la B s a t l s a t n a c te e - Gold. Transfers. Settlement of May 18,1916. 1 M 9 a 1 n a 6 c y , e b 1 i a n 8 l , - -Bank of— m 1 e 1 n ,1 t 9 M 16 a . y d W ra i w th n - . D i e te p d o . s- Debit. Credit. de N b e it t s. d T e o b t i a ts l . c T re o d t i a t l s. cr N ed e i t ts. f c u l n e d a ri a n ft g e . r Boston $9,939,000 $230,000 $5,497,000 $7,286,000 $,1789,000 $11,958,000 New York 7,673,000 :::.:::.::. '§5,*666,"666* 1,820,000 $i6,'466,'666" 22,709,000 12,309,000 4,093,000 Philadelphia 7,530,000 140,000 540,000 8,730,000 11,494,000 2,764,000 10,974,000 Cleveland 5,517 000 i,i8o;ooo 3,510,000 2,330,000 7,847,000 R A K D S T S W t a i t a a . c l n i l n a n h L l n s n a F m f o a s i t S r a s u o a i . D i n C n s o c d i . i i t . l s y s co 1 2 4 1 4 4 9 2 0 , , , , , , , , 8 6 6 3 7 1 4 7 7 8 4 4 1 7 9 7 5 9 5 0 2 8 1 0 , , , , , , , 0 0 0 0 5 0 0 5 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 — $ • 1 • 50,000 1,0 2 0 4 6 0 0 0 * , , 0 0 6 0 0 6 0 0 6" "* 1 i* $ , 3 2 9 5 5 3 4 7 0 6 0 0 0 0 * , , , , 0 0 0 0 6 0 6 0 0 0 6 0 0 0 0 * 1,500,000 3 3 7 9 5 3 5 4 0 , , , 0 0 0 0 0 0 0 0 0 1 5 8 1 1 1 0 , , , , , , 3 0 3 6 1 6 1 1 3 7 2 9 1 3 7 7 5 7 2 8 4 9 1 , , , , , , , , 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 > 1 9 2 4 2 0 1 , , , , , , 3 5 9 1 2 9 4 1 7 3 6 7 1 7 6 8 6 3 4 1 9 7 8 2 , , , , , , , , 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1 2 , , 3 1 6 9 4 0 4 0 1 1 0 3 0 2 , , , , , 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1 3 3 2 4 8 3 1 4 , , , , , , , , 4 8 9 6 2 4 7 4 7 2 8 9 3 5 2 0 5 3 1 2 3 2 0 1 , , , , , , , , 0 0 0 5 0 0 5 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Total. 71,360,000 150,000 6,440,000 4,090,000 4,090,000 11,879,000 66,489,000 66,489,000 11,879,000 77,650,000 Balance Gold. Transfers. Settlement of May 25,1916. May 25, Federal Reserve last state- 1916, bal- Bank of— m 1 e 8 n ,1 t 9 M 16 a . y d W ra i w th n - . D i e te p d o . s- Debit. Credit. de N b e i t ts. d T e o b t i a ts l . c T re o d t i a t l s. cr N ed e i t ts. f c u a l n n e d a c r e i a n i f n t g e . r Boston $11,958,000 $77,000 $7,941,000 $7,864,000 $11,881,000 New York 4,093,000 $10,000,000 •$1,800,000 $200,000 10,448,000 23,090,000 12,642,000 2,045,000 C Ph le i v la e d la e n lp d hia . . 1 7 0 , , 8 97 4 4 7 , , 0 0 0 0 0 0 150,000 8 2 , , 7 0 5 34 2 , , 0 0 0 0 0 0 1 5 1 , , 4 1 5 5 4 9 , , 0 00 0 0 0 $ 3 2 , , 4 40 2 7 0 , , 0 0 0 0 0 0 1 1 3 1 , , 3 2 8 1 1 7, , 0 0 0 0 0 0 Richmond 11,233,000 80,000 460,000 8,279,000 10,058,000 1,779,000 13,392,000 Atlanta 3,475,000 2,103,000 3,342,000 1,239,000 4,714,000 Chicago 3,823,000 1,100,000 - 4,046,000 15,090,000 11,044,000 877,000 St. Louis 2,981,000 280,000 7,776,000 8,934,000 "l," 158," 666" 4,419,000 Minneapolis 4,692,000 56,000 75,000 19,000 4,711,000 Kansas City 4,752,500 1,800,000 2,071,000 3,056,000 985,000 7,537,500 Dallas 8,420,500 """266," 666" 534,000 •1,346,000 812,000 9,032,500 San Francisco 3,401,000 50,000 90,000 2,842,000 2,752,000 6,103,000 Total 77,650,000 180,000 11,840,000 2,000,000 2,000,000 14,571,000 77,816,000 77,816,000 14,571,000 89,310,000 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

JUNE 1,1916. FEDERAL RESERVE BULLETIN". 271 Federal Reserve Agents' Fund—Summary of transactions, Apr. 21, 1916, to May 25, 1916. Week ending Apr. 27,1916. Week ending May 4, 1916. Apr. 20, Federal Reserve Agent at— 1916, balance. With- Withdrawn. Deposited. Balance. drawn. Balance. Philadelphia.. $3,240,000 $3,240,000 [ $130,000 $3,110,000 Richmond 6,000,<000 $200,000 5,800,000 5,800,000 Atlanta 13,950,,1000 500,000 13,450,000 13,450,000 Chicago 3,410,1000 3,410,000 3,410,000 St. Louis 4,130,000 4,130,000 *i66,"666" | 4,030,000 M Ka in ns n a e s a p C o i l t i y s . . . . . . 3 2 , , 9 3 0 5 0 0 , , ,< 0 0 0 0 0 0 2 3 , , 3 9 5 0 0 0 , , 0 00 0 0 0 I 2 3 , , 3 9 5 0 0 0 , , 0 0 0 0 0 0 Dallas l,450,,(000 $180,000 1,630,000 50,000 1,580,000 San Francisco. 10,570,000 800,000 11,370,000 11,370,000 Total i 49,000,000 700,000 980,000 49,280,000 280,000 49,000,000 Week ending May 11,1916. Week ending May 18, Week ending May 25, 1916. 1916. Federal Reserve Agent at— With- With- Withdrawn. Deposited. Balance. drawn. Balance. drawn. Balance. Philadelphia... ,$200,000 $2,910,000 $140,000 $2,770,000 $2,770,000 Richmond 170,000 5,630,000 5,630,000 $430,000 5,200,000 Atlanta 13,450,000 13,450,000 13,450,000 Chicago 3,410,000 3,410,000 100,000 3,310,000 St. Louis 4,030,000* 4,030,000 280,000 3,750,000 Minneapolis.... 2,350,000 2,350,000 2,350,000 Kansas City.... 3,900,000 3,900,000 200,000 3,700,000 Dallas 1,580,000 100,000 1,480,000 1,480,000 San Francisco.. $400,000 11,770,000 210,000 11,560,000 11,560,000 Total.. 370,000 400,000 49,030,000 450,000 48,580,000 ! 1,010,000 47,570,000 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

272 FEDEEAL RESERVE BULLETIN. JUNE 1, 1916. INFORMAL RULINGS OF THE BOARD. Below are reproduced, letters sent out from the paper of their member banks. These memtime to time over the signatures of the officers ner banks are all national banks and such State banks as may have joined the system. I have of the Federal Reserve Board which contain had sent to you, in addition to the Federal Reinformation believed to be of general interest serve Bulletin, a copy of the annual report of to Federal Reserve Banks and member banks the Federal Reserve Board for 1915 and reguof the system:. ations showing the different kinds of notes which a member bank may send to the Federal Loans and Discounts. Reserve Bank of its district for rediscount. Your letter of April 26, asking information If a national bank in your city has paper in connection with the Federal Reserve Act, is which meets the requirements of the circulars received. Answers to your questions are given sent you, it may send this paper to the Fedbelow: eral Reserve Bank for the district and have it 1. "When a merchant presents his note to rediscounted at the rates which you find for borrow upon (say for $1,000 at 7 per cent), ordi- that bank in the Federal Reserve Bulletin. narily what discount will be taken, or what MAY 2, 1916. amount of this $1,000 will he receive?" If for two months, the discount would be Loans on Farm Land. $11.67, and the merchant would therefore receive $988.33. If for three months, the Your letter of April 28, asking whether you dicount would be $17.50, and the merchant can obtain a loan on farm la,nd through the would receive $982.50. Federal Reserve Banks, is received. 2. "If the member bank then sends this note The 12 Federal Reserve Banks do not to the Federal Reserve Bank, what per cent of make loans directly to individuals but redisthis $1,000 does it receive!" count the paper of their member banks, which The face of the note less the discount at the are all national banks and such State banks as rate and for the time specified. may have joined the system. Under section 3. "When this collateral is turned in for cur- 24 of the Federal Reserve Act, copy of which rency, does the Government give its face value, is being sent you, any national bank not situand does the Government receive any compen- ated in New York, Chicago, or St. Louis may sation?" make loans secured by improved, unencum- The Government gives its face value and at bered farm land for not more than five years present receives no compensation. The Fed- and not to exceed 50 per cent of the value of eral Reserve Board may, in its discretion, place the property offered. Unlike short-term coma tax on note circulation but has not done so mercial paper, such loans as are described in up to the present time. Such a tax, if imposed section 24 can not be rediscounted at any of now, would fall upon the Government of the the 12 Federal Reserve Banks. In its United States for the reason that the law pro- annual report to Congress for 1915 the Federal vides that after the annual dividend of 6 per Reserve Board recommended that the provicent is paid the net earnings shall be paid to sions of section 24 be extended and broadened. the United States as a franchise tax, except You will find this provision on page 22 of the that one-half of such earnings shall be paid report, copy of which is being sent you under into a surplus fund until that fund amounts to separate cover. Congress has not yet acted 40 per cent of the paid-in capital of the bank. upon this recommendation, but it is hoped that The probable effect of such a tax would be to it will do so before adjournment. increase rates of interest charged to borrowers. There are also inclosed for your information 4. "About what interest does the Federal in this connection copies of circulars issued by Reserve Bank make on the above transaction the Federal Reserve fioard, from which you will and to whom does it go." find that notes of certain kinds taken by The rates of discount at the several Federal national banks, running for not more than Reserve Banks may be found on page 216 of 90 days in some cases and 6 months in the Federal Reserve Bulletin for May, copy of others, may be rediscounted at Federal Reserve which is being mailed to you. Banks. That is to say, national banks making For your general information it may be such loans as the circulars prescribe may send stated that there are 12 Federal Reserve Banks the notes to Federal Reserve Banks for redisin the United States, all of which rediscount count and receive the face of the note, less the Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

JUNE 1,1916. FEDERAL RESERVE BULLETIN. 273 discount, and be able to loan this money again. Real Estate Loans. You will be especially interested in the circular In reply to your letter of May 6, you are on six months' agricultural paper, from which advised that section 24 of the Federal Reserve you will see that national banks can rediscount Act authorizes any national bank not situated with Federal Reserve Banks notes issued for in a central reserve city, under certain prescribed agricultural purposes based on live stock for limitations, to make loans secured by improved breeding/raising, or fattening. and unencumbered farm land situated within its MAY 2, 1916. Federal Reserve district. There is no provision which authorizes a national bank to loan on real estate of any other character, such as village estate men- Tax OB Federal Reserve Notes. tioned in your letter. An amendment to this section, however, has been recently introduced Your letter of April 20 was duly received and in Congress which, if passed, will authorize a referred to the Board for attention. national bank not situated in a central reserve In reply you are advised that in the opinion city to make loans, under certain conditions, of counsel a discretion is vested in the Board as secured by any improved and unencumbered to what amount of interest, if any, shall be real estate located within 100 miles of such charged Federal Reserve Banks for the use of bank, whether within or without its Federal Federal Reserve notes, and that in the exercise Reserve district. This amendment has not as of its discretion the Board must take into conyet been acted upon by Congress. sideration the purpose and intent of Congress. It will be recalled that the banks pay all ex- MAY 8, 1916. penses of the preparation, issue, and redemp- Federal Reserve Bank Notes. tion of these notes; that unlike the tax on national-bank-note circulation the interest col- Federal Reserve bank notes are obligations lected is not used for the purpose of defraying of the Federal Reserve Bank by which they any of the incidental expenses; that after the are issued. They are secured by United payment of the expenses of the Federal Reserve States bonds deposited with the Treasurer of Banks and the cumulative dividends on their the United States and are issued through the stock, and after appropriating a certain amount Comptroller of the Currency under the same to the surplus account of such banks, all of the terms and conditions as national-bank notes. earnings are paid to the Government in lieu of Other than the 5 per cent redemption fund franchise and other taxes. To impose a tax, maintained with the Treasurer of the United therefore, on Federal Reserve notes merely as States, no reserve need be maintained against a means of raising revenue for the Government Federal Reserve bank notes. would not in the end increase the Government's Federal Reserve notes, on the other hand, revenue since it would merely increase the ex- are obligations of the United States. • They are penses of the banks and would thus deplete the issued to the Federal Reserve Banks through amount that the Government receives from the the various Federal Reserve Agents upon the earnings over and above the dividends on the deposit with such agents of certain classes of stock. eligible commercial paper as collateral security. One of the primary purposes of this provision The law requires that Federal Reserve Banks was to enable the Federal Reserve Board to con- shall maintain reserves of not less than 40 trol the volume of notes of this character placed per cent against Federal Reserve notes in in circulation. In other words, if these notes actual circulation, though the 5 per cent become redundant the Board can, by imposing redemption fund maintained with the Treasan interest charge or by increasing a charge urer of the United States for the purpose of already imposed, force a retirement and so fur- redeeming such notes is counted as part of nish the desired elasticity to our currency. It that 40 per cent reserve. has not been deemed necessary by the Board to These notes also differ in form. In the case force a retirement of these notes since the of the Federal Reserve bank note the words amount in circulation is no larger than is "National currency" are engraved on the top needed for the volume of business now being margin of the face of the note and "Federal done by the banks. A nominal rate of interest, Reserve bank note" on the bottom margin of therefore, would serve no useful purpose and the same side of the note. In the case of the in the opinion of counsel is not required under Federal Reserve note the words "Federal the law, nor would such a noniinal charge seem Reserve note" are engraved on the top and to be within the purpose and intent of Congress. bottom margins of the face of the note. APRIL 28, 1916. MAY 12, 1916. 43265—16 3 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

274 FEDERAL RESERVE BULLETIN, JUNE 1, 1916. LAW DEPARTMENT. The following opinion of counsel has been paired capital and surplus of the member bank, authorized for publication by the Board since whether such paper consists solely of direct borrowings of the makers or indorsers, or of the last edition of the Bulletin: both direct borrowings and discounts of business paper, or solely of business paper actually Limit on Rediscounts of Commercial or Business Paper. owned oy the indorsers. * * * While a member bank may acquire commercial or busi- The question which I wish to present to the ness paper from the same person in excess of 10 per cent Board is: (1) Does the ruling in the May Bulleof its unimpaired capital and surplus (sec. 5200, IT. S.'R. S.), tin referred to determine that a member bank its Federal Reserve Bank can not rediscount such paper may not extend loans and discounts to a single bearing the signature or indorsement of the same person borrower exceeding 10 per cent of the unimin excess of that amount (sec. 13, Federal Reserve Act). paired capital and surplus of the member bank Section 13 Federal Reserve Act does not amend section provided the discounts are of business paper? 5200 U. S. R. S. (2) Does the Board hold that the fifth paragraph MAY 9, 1916. of section 13 of the Federal Reserve Act modifies the proviso in section 5200 of the Revised SIR: In the May issue of the Federal Reserve Statutes ? Bulletin, volume 2, page 225, the Board pub- Both questions should be answered in the lished an informal ruling reading in part as negative. follows: In considering these questions it should be There is no limitation in the law as to the borne in mind that section 5200, Revised total amount of rediscounts which a member Statutes, relates to the amount that may be bank may take from the Federal Reserve Bank. There is," however, a provision in section 13 of loaned to any one person, firm, or corporathe Federal Reserve Act providing that the tion by a national bank, while section 13 of aggregate of notes bearing the signature or the Federal Reserve Act relates to the amount indorsement of any one person, corporation, that may be loaned on rediscount by a Federal etc., rediscounted by the Federal Reserve Reserve Bank to a member bank. Section 13 Bank for any one bank shall at no time exceed 10 per cent of the unimpaired capital and sur- of the Federal Reserve Act does not, therefore, plus of said bank. This clause ox the Act con- modify or amend in any way section 5200 tains an exception as to the discount of bills of Revised Statutes. Confusion of thought necexchange, but no exception is made as to the essarily results from an attempt to treat these discount of promissory notes. two sections as dealing with the same subject If, therefore, any particular paper which you present for rediscount to the federal Reserve matter. Bank, either singly or added to the paper of Under section .5200 Revised Statutes— the same makers or indorsers which the Federal The total liabilities to any association of Reserve Bank has already rediscounted for you, any person * * * for money borrowed amounts to a total of more than 10 per cent of * * * shall at. no time exceed one-tenth part the unimpaired capital and surplus of your of the amount of the capital stock of such bank, the Federal Reserve Bank, under the associations, actually paid in and unimpaired, clause above quoted, has no authority to and one-tenth part of its unimpaired surplus rediscount. fund. * * * But the discount of bills of In commenting on this ruling the chairman exchange drawn in good faith against actually of the board of one of the Federal Reserve existing values, and the discount of commercial or business paper actually owned by the Banks, says: person negotiating the same shall not be con- The last paragraph of this ruling seems to be sidered as money borrowed. susceptible of the construction that a member A member bank may, therefore, acquire from bank may not rediscount with the Federal Reserve Bank paper of the same makers or the same person bills of exchange or commerindorsers in excess of 10 per cent of the unim- cial or business paper in excess of 10 per cent Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

JUNE 1,1916. FEDERAL RESERVE BULLETIN. 275 of its capital and surplus. When such bank, GENERAL BUSINESS CONDITIONS. however, after acquiring paper of these two General business and banking conditions reclasses tenders it for rediscount to a Federal ported by Federal Reserve Agents in the 12 Reserve Bank it is subject to the limitations Federal Reserve districts as of May 23 or imposed by section 13 of the Federal Reserve thereabout indicate, in general, that business Act. This section provides in part that— activity in the United States has perhaps The aggregate of such notes and bills bear- reached the maximum of the present moveing the signature or indorsement of any one ment. Orders covering factory outputs to the person, company, firm, or corporation redisend of the year at maximum capacity, a more counted for any one bank shall at no time cautious attitude as to the future, considerable exceed 10 pet centum of the unimpaired capital and surplus of said bank; but this restriction unrest on the part of labor, even where most shall not apply to the discount of bills of ex- highly compensated, and a slightly less favorchange drawn in good faith against actually able outlook in respect to some of the growing existing values. crops, are the chief contributing reasons given. It will be observed that while bills of ex- On the other hand, more favorable crop conchange are expressly excluded from the limi- ditions are reported in some districts, even tation above quoted, commercial or business though the spring has been generally very late. paper is not and the Board is without authority Mines and oil wells are exceedingly active. to except from this provision of section 13 Lumber and building show great activity, this class of paper. The fact that member although the latter is in some sections somebanks may acquire commercial or business what affected by labor conditions. paper in excess of the amount they are author- There is hardly any perceptible hardening ized to rediscount with Federal Reserve Banks of money rates, and the supply of loanable is not of any special significance. Member funds continues more than ample. Railroad banks are not permitted to rediscount all of earnings, where not injuriously affected by contheir assets with a Federal Reserve Bank, but gestion at seaports, are generally excellent, and are limited to certain classes of eligible paper. the only bad signs in this industry are the im- It is not inconsistent with the general purpose pending labor difficulties. Post office and and intent of the Act therefore that commerother similar receipts appear to be at a maxicial or business paper bearing the signature mum everywhere. or indorsement of any one person, firm, or DISTRICT NO. 1—BOSTON, corporation should be limited to 10 per cent of the capital and surplus of the member bank Unable to gauge the outlook for the future obtaining the rediscount. On the contrary with any certainty, merchants in many lines ? it may be reasonably assumed that Congress are trying to restrict their advance commitintended to permit a preference to be shown ments. Rumors of an early peace, possible by Federal Reserve Banks for bills of exchange foreign complications, and the Mexican situadrawn against actually existing values as being tion, as well as the high cost of raw material self-liquidating to a greater extent than the and labor, have all been factors in retarding the ordinary commercial or business paper. general advance in business activities in this Respectfully, section during the month of May. In many M. C. ELLIOTT, Counsel. lines, however, the advance continues unabated. This lull is looked upon as temporary and in To Hon. CHARLES S. HAMLIN, many cases is most welcome, giving manuf ac- Governor Federal Reserve Board. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

276 FEDERAL RESERVE BULLETIN. JUNE 1,1916. turers a chance to get their bearings and buy- amounted to $72,393,000, or about $4,000,000 ers a chance to look about before placing new more than the highest for any corresponding orders. period in the last fifteen years. Skilled labor is more difficult to obtain, due Exports from the port of Boston for April, to a certain extent to the fact that higher wages 1916, were the largest for many years, amounthave caused a feeling of unrest. Many are will- ing to $16,496,726, as compared with $11,506,ing to work only part time, or are taking short 025 for March, 1916, and $10,590,182 for April, vacations. As this condition will probably not 1915. The imports for April, 1916, amounted improve with the approach of summer, it also to $23,683,251, an increase of $2,232,022 over is an influence in making manufacturers cau- March, 1916, and an increase of $5,677,477 as tious about committing themselves too far. compared with April, 1915. The older and longer established houses are Receipts of the Boston post office for April, carrying on their business with an idea of being 1916, show an increase of about $43,000, or 6J in a strong position at the end of the war and per cent over April, 1915. For the first 15 days are endeavoring to prevent overexpansion in of May receipts were about $32,000, or 10J per their respective lines. This has a steadying cent over the same period last year. influence on general business and offsets to a The B. & M. R. R. reports net operating inconsiderable extent those with perhaps less come, after taxes, for March, 1916, as $929,220, foresight and experience. as compared with $592,344 the corresponding Money rates remain unchanged, although month last year. The N. Y., N. H. & H. R. R, money is a trifle less free at the minimum rate reports net operating income, after taxes, for than it was last month. This is in part due to March, 1916, as $1,338,120, as compared with the reduction of surplus reserves, but more to $1,578,145 for March, 1915. The decrease in the feeling that the trend is toward higher rates. New Haven net earnings is due to the conges- Call money is 3 per cent; commercial paper tion at seaboard terminals rather than to the 3 to 3^ per cent for short dates, 3 per cent up- amount of business handled. Gross earnings ward for six months, 4 to 4i per cent for a year; for March, 1916, were $700,000 more than for town notes, fall maturities, 2.80 to 3 per cent; March, 1915, but in spite of this net operating bankers7 acceptances, 90 days, 2 per cent and income showed a falling off and net corporate upward. income showed a deficit of $68,604, as com- Loans and discounts of the Boston clearing- pared with a surplus of $264,806 for the same house banks on May 20, 1916, show an increase month last year. of $6,189,000 during the. preceding month, Reports from the boot and shoe industry inwhile demand deposits show a decrease of dicate that business is continuing well above $963,000 during the same period. The amount normal with no indications of any slowing up in "Due to other banks" on May 20 was $139,631,- demand. The advance in leather, however, is 000 as compared with $144,477,000 on April 15. causing uneasiness among manufacturers. The The excess reserve of these banks has decreased marking up of shoe prices reported last month from $56,950,000 on Apr^l 15 to $47,944,000 on has apparently had little effect on new orders. May 20. The demand for wool continues unabated, Exchanges of the Boston clearing house for and it is reported that abnormal prices are being the week ending May 20, 1916, were $210,413,- paid for the domestic crop now being bought in 870, as compared with $148,390,321 for the cor- the West. The woolen and worsted mills are responding week last year and $219,284,696 for feeling a temporary lull in new business, largely the week ending April 15, 1916. due to the fact that large orders were accepted Building and engineering operations in New at the opening of the present season and now, England from January 1, 1916, to May 17, 1916, between seasons, mills are more anxious to catch Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

JUNE 1, 1916. FEDERAL RESERVE BULLETIN, 277 up on business already taken than to secure the towboats were tied up, it was reported that new business. 50 steamers were thus prevented from discharg- The cotton-goods market is duller than for ing their cargoes of import freight. some time. Many manufacturers have enough About one-half of the world's ocean freight advance business to last for many months, and is carried in ordinary times by the British merthis is causing prices to hold firm.. cantile marine. It has recently been estimated The spring has been backward in New Eng- that 57 per cent of the British tonnage is now land, and this has affected the dry-goods trade. requisitioned or used by the allies for purposes In spite of the high prices ruling on many kinds of the war, leaving only 43 per cent in its of goods the last few weeks of good weather has former employment, consequently every shipmaterially helped business. yard in the United States is working to capac- The bond market is more active, and there is ity, with an aggregate of over 1,000,000 tons a good demand for the better class of securities- on the stocks. For the first time since September, 1915, DISTRICT NO. 2—NEW YORK. Bradstreet's index number at the end of April A continuance of good and very active busi- shows a halt in the advance of commodity ness is reported by correspondents in all sec- prices. tions of the Federal Reserve district of New The New York clearing house members on York. Nearly every report refers to the back- May 22, 1916, reported aggregate loans, etc., wardness of the season, the scarcity of mate- $3,380,005,000, deposits $3,519,032,000, and rials and labor, difficulties of transportation, excess reserves $76,956,000. Since April 1, increasing pay rolls, and advancing prices. 1916, loans have increased $16,334,000, de- Collections are said to be unusually good, ex- posits decreased $46,925,000, and excess recept in country places where impassable roads serves decreased $46,867,000. Exchanges caused slow payments. Several savings banks through the clearing house during the month in this district have reported larger net depos- increased $2,810,951,582 over last year. its and a better ratio of increase than in the Statistics of failures in this State show in corresponding period of last year. One large April a decrease of f44 in number and $16.,institution attributes the increase to high 090,504 in liabilities compared with a year ago. wages. Exports from the port of New York in the Wages in general are probably higher than four weeks ended April 29 were $170,826,282, ever before, yet many strikes occurred during an increase of $74,784,497 over April, 1915. the month over questions of wages, hours, and Imports for the same period were $112,134,268, unions. Such acute unrest of many thousands an increase of $27,174,847. of workers is causing much concern. The principal exchange rates displayed weak- The congestion of export freight is still seri- ness last month; the recent decline in sterling ous, Railroad cars are not accumulating so was checked by imports of $10,456,000 gold rapidly as was the case a month or two ago, from Canada; Paris checks receded to 6.07J, but embargoes remain on many lines. Ship- but have recovered to 5.92; German exchange ments are facilitated when shippers furnish as- touched a new low record of 71 £ and strengthsurance to the railways that space on board ened to 77.06; Amsterdam exchange, which has ship has been secured and that no delay will been quoted at a premium of 5 per cent to 6 occur in handling the goods at this port. per cent for two months, has declined to 41.50. Freight for local delivery has also been held More firmness in money rates was apparent up in great quantities on account of the strike during April. Call loans advanced sharply of marine engineers and the shortage of lighters about the middle of the month when foreign necessary to move it across the rivers. While relations were disturbed. The high quotation Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

278 FEDERAL RESERVE BULLETIN. JUNE 1, 1916. for odd lots touched 4 per cent, but the market Our reports indicate that, with a few excepquickly settled to a 2 J per cent rate for renew- tions, the high prices of all goods are being als. Time loans on collateral advanced about maintained. A slight decline in lumber prices £ per cent in the minimum rate, the range now is noted, due, it is said, to difficulties in shipbeing 2f per cent to 4 per cent against 2J per ping, and the holding up of building operacent to 4 per cent on the 1st of April. Quota- tions arising from delay in receipt of material, tions for bankers' acceptances were practically strikes, and other unusual interruptions. Coal unchanged at 2 per cent to 2\ per cent. Com- tar products are cheaper, the supply evidently mercial paper rates remained within a range reaching the demand, due to the great increase of 3 per cent to 3J per cent. in the output of these materials that has been made in the last 18 months. DISTRICT NO. 3—PHILADELPHIA. Retail trade continues very active, and mer- Last month attention was directed to the chandise of all kinds is being freely consumed. rising prices and brisk trade in most lines of Collections, as far as wholesalers and manubusiness. Since then so much has been said facturers are concerned, are reported satisfacof the unsatisfactory aspect of the labor situa- tory, but retail merchants in the smaller towns tion that a special investigation of the subject complain of poor collections, suggesting poshas been made. siKiy that notwithstanding the large wages Both skilled and unskilled labor has been paid they were not sufficient to sustain the scarce for some time, and in many lines of in- present standard of living. dustry wages have been increased again and again until they are abnormally high. There DISTRICT NO. 4—CLEVELAND. is almost universal complaint, however, that One of the biggest features of the business as wages are increased a large class of wage conditions in District No. 4 is the unsatisfied earners become less productive, and the failure demand for the output of rubber factories of industrial plants to make sufficient or rea- making pneumatic tires. In Akron during sonable output is preventing the realization of the last 18 months nearly all of the much, if any, profit from operations. The atti- leaders have doubled their capacity. They tude of such wage earners is disappointing, as are all preparing now to redouble. Recent instead of taking advantage of the present sales of preferred stocks in the amount of wonderful opportunity to make large earnings, $12,000,000 in excess of present outstanding they are apparntly not netting much more issues will partially provide funds. The present than formerly when wages were much lower. output is about 50,000 daily. All makers are The cost of living for them, as for others, is far behind in their orders. Labor shortage in much higher, and the whole country is suffer- this industry estimated at 2,000 to 3,000 ing economic loss through the failure of our hands. industrial establishments to produce the vol- It looks as if the crest of the wave in prices ume of goods for which there is present so great has been reached in the steel business. Both a demand. seller and buyer are of the opinion that their The situation with many manufacturers, as best interests will be served by maintaining reported, is so unsatisfactory that there is a present conditions. There are one or two tendency on their part to curtail operations lines, such as car building and structural work, until they can be conducted under more favor- that have fallen off in activity—first, because able conditions. There is also deep feeling deliveries are somewhat extended, and, second, that unless better results are obtained from a because it is difficult for the buyer to figure day's work it will be almost impossible for this out a remunerative return. The situation in country to compete successfully for the world's the trade, however, is not regarded as any less trade. strong, for specifications are still continuing in Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

JUNB.l, 1916. FEDERAL RESERVE BULLETIN. 279 excess of shipments. Important steel com- returned to work, and the difficulties with panies have adopted the policy of writing street railway employees in several of our down inventories out of earnings against the cities were settled by granting advances to the date when inventory values may come down carmen. Many concerns are behind in filling automatically. orders on their books, due to continued short- Pig iron is moving forward from the furnaces age and scarcity of labor. A number of comat a faster rate than it is being made. A panies fear cancellation of orders unless there larger percentage of furnaces are in blast than is an improvement from the help standpoint. is usually the case at any one time, and without Smaller plants in certain sections have been question many will have to go out for relining wholly or partially closed on account of labor and other causes from now on. The ratio conditions. A significant feature of some between Bessemer pig iron, at $21 per ton reports is that the advance in labor prices has f. o. b. valley, and finished plate and shapes, at not been accompanied by increased efficiency. between $55 and $60 a ton, is most unusual. Farming communities, retarded for some It is between seasons in the coal business. time on account of weather conditions, are Lake navigation has not fully gotten under now busy, with encouragement on every hand,, way as regards the shipment of coal. Rail- Growing wheat looks much better, and prosroads are not taking much fuel coal owing to pects are good for an average crop. Livethe fact that the accumulation in anticipation stock prices are high. Farmers are holding of a strike is not yet exhausted. The window- wool for 40 cents a pound, and it looks as if glass industry is in a very prosperous condition. they would get that price soon. This is The situation from a collection and credit almost double the price prevailing before the standpoint continues as last reported. Ninety war. Spring planting has been going on failures are reported in this district for the rapidly in the tobacco district, and a large month of April, with total liabilities of crop is predicted. Farmers are also going $1,145,629. This is a 30 per cent decrease in heavily into hemp. the number of failures over last month, but rep- Notwithstanding a reported slackening in resents a $300,000 increase in amount. structural steel demand, reports on building Garment manufacturers report the spring operations for this month show improvement. season • good, although not of the business The improvement seems to be in the number volume anticipated. There are definite in- of smaller buildings, as it will be noted from creases in sales of high-priced goods. the comparison given below that nearly 1,200 Changes in the wholesale and retail mer- more permits were issued during April than cantile trade have been mostly those which during March in the six large cities of the discome with the changing season. In the whole- trict. sale lumber trade car shortage is less troublesome than 30 days ago. The movement Number of permits Valuation. involving the establishment of new companies issued. and the extension of present plants is still in March, April,April, March, April, April, evidence, especially in the smaller manufac- 1916. 1916. 1915. 1916. 1916. 1915. turing communities. Cleveland 1,123 1,533 1,897 $1,838,465 $2,625,055 $3,076,385 Labor and employment conditions have been Cincinnati 1,466 1,706 1,658 984,500 1,156,165 1,317,485 Columbus 340 393 310 868,935 1,166,840 406,555 the disturbing factors recently in this district. Pittsburgh 332 482 453 1,767,612 1,250,762 974,283 Toledo 340 611 392 1 022,495 1,188,467 959,042 Strikes, real and threatened, are of constant Youngstown — 100 172 154 176,313 373,001 219,505 occurrence, but this latter situation is more 3,701 4,897 4,864 6,658,320 7,760,290 6,953,255 favorable than in the latter part of April and early in May. The strikers at the Westing- The percentage of increase in post-office rehouse Electric & Manufacturing Co. have ceipts over 1915 is the same as last month, the Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

280 FEDERAL RESERVE BULLETIN. JUNE 1,1916. increase being at the rate of 11.2 per cent and are maintaining rediscount lines with offerings the totals as follows: largely of farmers' notes. Agricultural conditions are reported fair. April, 1916. April, 1915. Crops are somewhat backward, owing to late spring and dry weather. Wheat and oats are Cleveland $332,914.86 $311,238.20 Cincinnati . . 267,607.54 252,441.41 not as good as last year, but more corn and Columbus 110,991.04 96,955.96 Pittsburgh 364,744.40 305,380.53 oats are reported planted than ever before. Toledo - . 94,850.35 86,296.64 Youngstown 26,569.28 24,016.88 Farmers are getting out of old habits of sending 1,197,677.47 1,076,329.62 money away for hay, flour, and other staple articles, raising more home supplies, using the Money continues easy, although the demand money saved to buy land and improve it. is better than 30 days ago. The municipal Cotton acreage has probably been increased bond market is quiet, prices being well main- about 10 per cent and lands have been better tained. Considerable buying of public utility prepared than usual, but it is difficult to estiand industrial stocks is noted. mate the effect of lack of rain and insufficient Clearings continue heavy, record days sur- supply of potash for fertilizer. Quite an interpassing any previous figures being reported by est seems to be developing in raising cattle and our reserve cities. The reports to the Comp- hogs particularly. troller of the Currency under date of May 1, Tobacco manufacturers report an increase of •1916, show $552,157,931 deposits in the six business for the past four months over 1915. large cities of this district. This is $11,000,000 Increased wages have satisfied labor, but the increase over the.figures as reported March 7, increase, with the high cost of supplies, from 1916, and an increase of $140,000,000 over-.the which relief seems remote, with prices hardly up figures of a year ago. Detailed table of de- to normal, has not made results very satisfacposits is given below. tory. Only about two-thirds of a tobacco crop has been planted in South Carolina and some May 1,1916. Mar. 7,1916. May 1,1915. farmers are replanting tobacco fields in corn and forage crops. In. North Carolina and Virginia C C i l n ev ci e n l n an at d i . . . . . . $1 8 1 6 4 , , 1 0 6 6 1 2 , , 9 4 8 3 0 1 $1 8 1 6 5 , , 0 8 2 7 6 8 , , 4 88 9 5 3 $ 6 8 8 9 , , 9 4 8 0 9 8 , , 5 9 0 3 9 6 normal planting is anticipated. Columbus... 30,507,380 30,995,408 26,186,719 Pittsburgh.. 269,446,777 258,873,444 191,389,633 Lumber dealers report only fair conditions, Toledo 35,598,953 35,160,779 26,341,024 Youngstown 16,380,410 14,138,713 10,580,843 and the import and export trade is being seri- 552,157,931 541,073,722 412,896,664 ously handicapped by scarcity of freight room and high rates. Builders report fair conditions. DISTRICT NO. 5.—RICHMOND.- Several large manufacturers of wagons say busi- There have been no unusual business changes ness is hardly up to normal. in general conditions in May. There is com- Woolen mills say they are busy and running plaint of lack of rain, relieved to some extent 10 hours, but the cost of raw material and the by recent showers. difficulty of securing efficient labor and a supply Conditions range from below normal in a of dyes limits profits until they are hardly comfew localities to fair, but more generally are mensurate with the apparent prosperous condireported good, and some reports are decidedly tions. A large hosiery mill employing 1,200 optimistic. Collections generally are reported hands, largely women and only natives, was fair, with increases of from 12 to 20 per cent never so busy. It has twice as many orders as in volume of trade. Larger towns report it can fill, and is advertising locally for labor. higher deposits in banks and limited demand Cotton mills are reported coming into their for loans. Commodity loans, particularly in own again and are running at capacity, with cotton, are being liquidated, but smaller banks some on overtime. Sales of finished products Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

JUNE 1,1916. 7EDEBAL BESEBVE BULLETIN. 281 are yielding good profits, and many of them In Georgia the cotton acreage has been are sold up into the fall. Quite a number of reduced but not to any great extent. Fertilizer trade acceptances have been offered of late for tag sales show a decrease of 53,789 as compared rediscount, given by mills for cotton purchases. with 1915. Cottonseed meal tags show a cor- The following, from a very prominent cotton responding falling off. The crop is all planted manufacturer is interesting: and in fairly good shape. Reports from northern Georgia indicate damage from dry weather. Money is obtainable at reasonable rates, more so than ever before at this season of the South Georgia reports less damage. The year. Farmers are borrowing more largely peach crop of Georgia though short is in fine from banks than ever before, and at more condition, has been well sprayed, fertilized, reasonable rates of interest. The Federal and is the cleanest in several years. The Reserve Banks have been a great blessing to shortage is due to the hot weather in January the people generally, and especially to manufacturers and others who use large amounts on and frosts late in April. The quality and size short term paper. It is doubtful if any law of fruit are first class. The crop is expected to has ever been put upon the National statute approximate 3,200 cars as compared with books that has afforded so much real relief and 4,468 in 1915. Advance price offerings are restored confidence so thoroughly as this. good and indicate that the crop will bring There has recently been some little improve- approximately $800 per car. ment in the value of cotton. Statistics show a large decrease in the use of A large paper manufacturer reports scarcity fertilizers in Alabama and Mississippi, and of raw material and uncertainty of labor con- while the acreage has not been as much reduced ditions. A manufacturer of tools reports this year as expected, the crop will be less. similar conditions and that it is found neces- The cotton, corn, and other crops throughout sary to train unskilled labor. Limestone quar- this belt are badly in need of ram. ries are very busy, no one is idle who wants The corn, wheat, and oats acreage show an work, the product going to Pittsburgh for increase, and while somewhat damaged by dry fluxing purposes. weather the outlook for the wheat crop is very Railway earnings show improvement, but the promising, and corn is reported in good shape demands of labor seem to have more than dis- at present. The oat crop has suffered for rain counted this and wage increases in almost and in many places has rusted. every direction have to be reckoned with. Diversification is not falling behind last year. We are apparently reaching our present limit Especially is this true in the more progressive in transportation and unless the railroads sections. The most encouraging factor in obtain sufficient revenue to increase facilities diversification is the increased interest in cattle and meet the demands of labor conditions raising, and especially in the improvement of may arise most inimical to the continued the breed. development of our resources and opportunities. The strawberry crop though late is progressing favorably and a large crop is expected, with DISTRICT NO. 6—ATLANTA. good prices. There is a remarkable uniformity in reports In the tobacco district of Tennessee practiregarding progress in all manufacturing lines. cally all the leaf tobacco is out of the hands of This promises to continue throughout the the farmers and held by the factories and waresummer. Interest is at this time largely cen- houses. In the past 30 days tobacco has been tered in crop conditions and considerable fear is in greater demand and is selling at an average felt as to the effect the dry weather has had on of $1.50 to $2 per hundred higher than it did growing crops. at the opening of the season. Planting pros- 43265—16 i Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

282 EEDEEAL BESEEVE BULLETIN JUNE 1,1916. pects for 1916 crop are good, and a large acreage indications are that a large share of the Cuban is expected on account of high prices. crop will come here for refining. Coffee is sec- In the Birmingham district the production of ond with imports of $3,033,079. Sisal was imiron and steel continues at high point and pay- ported to the amount of $1,451,954. rolls are larger than ever before. There is a Agricultural prospects throughout this secbetter tone to the coal business. The demand tion are exceedingly favorable for fall returns, is not strong enough to put coal mining on a while heavy shipments of berries and vegetables substantial earning basis. The coal demand are now going forward to market and increased lately has been fairly good, but that has been returns are evidenced to growers through effecsomewhat enhanced by a shortage of cars. tive selling organization. Machine shops and other manufactories using Reports from the Savannah district state raw materials are all handling a large volume that the lumber business has recovered considof business. Collections are fairly good. New erably and that the outlook is regarded as exfurnaces are being put into condition at Annis- ceedingly favorable. Building is more active ton and Qadsden, Ala., to resume operations and the tendency of prices seems to be upward. in near future. It is practically conceded by the naval stores Atlanta clearings for the first 18 days in May trade that prices that have been prevailing for show $45,772,604.26 as compared with $33,- the past three months have been recognized as 325,048.20 for the same period in 1915. Bank much below cost of production. The disposideposits continue to increase with only fair tion on the part of the producers not to sell has demand for loans. brought a more stimulating effect upon the The New Orleans branch of the Federal Re- rosin market. Prices for turpentine at this serve Bank of Atlanta reports: time are low, but it seems to be the general opinion that these prices are only temporary The local money market continues steady and unchanged with a fair demand for loans and that an early advance can be appreciated. and funds in good supply. The figures of the commerce of New Orleans DISTRICT NO. 7—CHICAGO. for April are most encouraging, showing a large General business in this district is in a conincrease in both imports and exports. New dition of activity, with the supply of money Orleans is becoming more and more the home still in excess of requirements. A better port for Latin-American trade, and now handles demand for funds is developing in some of the nearly as much trade during the warm months country communities, and this is shown by as during the winter. the request for accommodations from some of Imports for April were $11,869,104, an in- the smaller banks upon their reserve city corcrease of 19 per cent over the corresponding respondents. The larger Chicago banks are month of last year, of 35 per cent over the finding it necessary to purchase commercial figures of 1914, just before the war, and of 59 paper at low rates in order to derive some per cent over the average April imports of the income from their heavy deposit accounts. previous six years. There is a possible danger from the forced- The exports totaled $22,939,635 to foreign liquidation of the paper issued by the smaller countries, with Porto Rico included, or 6 per concerns and now being marketed by the cent over last year, and 67 per cent over commercial paper brokers. When a larger April of 1914. There was shrinkage in the number of names, including the more substanexports of wheat and flour as compared with tial houses, is offered, the banks will naturally 1914. I discriminate, particularly if their own funds Sugar stands first among the imports, with j are being reasonably well employed by their $5,815,546 of that article brought in, and the I customers., which may cause inconvenience to Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

, 1916, VBDBBAL BEBEEVE BULLETIN 288 the small concerns which, are without estab- supply of both corn and oats. Cattle and hogs lished banking lines to take up their floating are said to be fewer in number, but the farmers supply of paper. seem to be making an attempt to increase their Bond houses claim that while there is a large live-stock holdings, supply of money awaiting investment, sales In Michigan, the fruit crop is generally have fallen off and customers are not showing reported in excellent condition, with prospects the same interest as a month ago. New issues of a good yield. The weather has considerably of bonds and notes appear to meet with favor, delayed all spring work, but there apparently but the demand for municipal bonds has is a satisfactory outlook for wheat, corn, oats, slackened and prices are a little below the high and potatoes, the principal products. There point. is said to be a good supply of cattle but a Business in general is progressing satisfac- smaller number of hogs than usual. In Wistorily. There have been labor disturbances consin the general crop outlook is somewhat which have interfered with building operations improved, and a large acreage of potatoes is in some sections, and have caused a number of anticipated in the southwestern part of the the larger manufacturing establishments to State. A good supply of lambs is reported, grant increased wages. Up to date the results but other live-stock does not appear to be up have not been serious, but a continuation will to normal. result in such increase in the cost of production Agricultural implements.—Manufacturers adthat retail prices will of necessity be increased, vise some falling off in sales, owing to the crop and there is the possibility of decreased sales, injury and the increased c&st of their finished particularly in foreign competitive markets. product. Actual sales are reported as approx- A correspondent advises that factories manu- imately the same as last year, for the decreases facturing principally for South American trade in some lines of the implement trade are offset are experiencing a decrease in orders owing to by increases in other lines. The high cost of the excessive ocean freight rates. One thing raw materials, together with the increased to be taken into consideration with regard to demands of labor, are subjects which are the volume of business is the present value of receiving the earnest attention of the large merchandise, which in many cases is consid- manufacturing establishments. erably above the quotations of a year ago. Automobiles.—Shops are still operating at Weather conditions have delayed agricultural capacity, with the warehouse stocks of dealers work from two to three weeks, and a decreased going out, and collections good. acreage of winter wheat seems to be fully Building and building material.—General confirmed by the reports at hand. The soil building in Chicago outside of the loop district is generally in good condition, and there is a is active, and a number of cities which have favorable prospect for a good crop of corn and benefited by the conditions of the last year oats. Illinois has suffered considerably as are engaged upon plans of expansion and conregards wheat, but oats and corn are reported struction. The brick business is reported good, upon favorably, and with good weather condi- with satisfactory prospects for the immediate tions the farmers should have a successful year. future. Cement is being disposed of in fair There appears to be a shortage in the supply volume and anticipates sharing in such conof cattle and hogs. Indiana anticipates a good struction as may develop. oat crop, a fair acreage of corn, but a severe Coal.—There has been small business in decline in its original wheat prospects. Live coal during the past month, as the large constock is said to be in fair supply. Iowa reports sumers have been engaged in using their a fair quantity of wheat and anticipates a good storage coal. There is now a fair prospect for Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

284 FEDERAL RESERVE BULLETIN. JUNE 1, 1916. improvement and the mines are reported to be serving at home. Some imported groceries showing considerable activity. Collections on have increased enormously in price, but on the the whole are said to be satisfactory. whole there is little criticism, and a generally Distilling and brewing.—The distilleries are optimistic feeling. still working overtime in connection with alco- Hardware.—A decreased demand from the hol orders,.with ordinary business somewhat general trade is reported, but the railroads and quiet. The breweries are experiencing an in- manufacturers are purchasing larger supplies. creased demand, as the general labor situation Collections are good, and the failing off of sales has improved and more men are being em- in farming communities is looked upon as deployed. ferred purchases, as the farmers are busy with Dry goods.—Retail selling has been somewhat their corn planting. To a slight extent the retarded by unusually cold weather, and pur- high price of some items is retarding trade, chases for fall delivery are in large share booked but there seems a disposition on the part of the at this time. As compared with last year, busi- manufacturers to hold down as far as possible ness in general shows an increase, but there is the prices and to avoid such advances as would considerable difficulty experienced in securing materially curtail sales. deliveries of merchandise. The retailers, and Leather.—The activity in tnis line continues in some cases the wholesalers, distributing at increasing prices, and trade throughout this goods throughout this territory appear to be territory is excellent. There is difficulty in seheavily stocked in anticipation of a considerable curing labor and workers are inclined to be demand for merchandise during the summer restless. Export trade is still hampered by lack and fall. The large wholesale houses are reof shipping facilities. There is a slight recesstricting more and more their future commitsion in the belting business, with difficulty in ments and are inclined to analyze carefully the securing certain classes of raw materials, parsituation as regards the ability of their custicularly metals and fabrics. tomers to dispose of the goods purchased. Live stock and packing.—The packing indus- Furniture.—It is expected that the advance try reports a slight decrease in domestic sales in materials will soon cause an increase in the during the last 30 days, attributed to high price of furniture, and the manufacturers report prices, also a strong foreign demand. Live a fair volume of business, satisfactory collec- stock is coming into market in sufficient suptions, and difficulty in securing sufficient labor. ply and prices are well maintained. By- Grain markets.—There has been little change products, such as hides, skins, wool, and glue, in the value of wheat during the past month, are meeting with an active demand, and ferand farmers are said to have a good supply of tilizers indicate a good distribution. old-crop corn and oats, also a fair amount of Lumber.—Prices for lumber are well mainold wheat. The demand for export is reported tained and sales are showing a satisfactory infairly good for oats, fair for corn, and poor for crease over last year. Collections are somewheat, Canadian wheat underselling that in the what improved, but a number of customers are United States. still reported taking extra time who formerly Groceries.—The sentiment in the grocery met the discount terms. business is considerably improved over last Mail order.—During the month of April a month; a brisk trade is reported, also a good considerable gain in sales was reported for the outlook. Collections are meeting with the ap- States of Iowa, Illinois, Wisconsin, Indiana, proval of the wholesalers, and the various disand Michigan, as compared with the same petributing points are disposing of a good volume riod last year. of merchandise. This particularly applies to Paper.—Prices are reported firm, with some canned goods, owing to the high price of sugar, decrease in demand, which is attributed to overwhich causes a decrease in canning and pre- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

JUNE 1, 1916. FEDERAL.< BESERVE BULLETIN". 285 stocking by retailers. A revival is not antici- 1916, Deposits in the 8 Central Reserve City pated in the next few months. member banks in Chicago were $611,378,000, Pianos.—Factories in this line report con- at close of business May 20, 1916, and loans siderable activity, with collections good, and were $446,231,000. Deposits show a decrease the people in a better position to pay, particu- of approximately $34,000,000 during the past larly in the good farming districts. A fair month, and the loans an increase of approxitrade is expected during the summer, with a mately $12,000,000. large fall business. The cost of production has DISTRICT NO. 8—ST. LOUIS. increased, it is difficult to procure the necessary There has been no important change in raw material, and labor is in short supply. business conditions in this district during the Steel.—The steel mills are unable to handle last month. Some lines report gains equal to all of the business now offered them and a conthose reported in previous months, but in siderable quantity is being booked for 1917. general, business seems to have slowed down There is evidence that building and manufacat least to a degree. Some authorities conturing are being held back owing to the high sider this the natural result of the rapid price of steel. On the whole, conditions are increase in the cost of finished articles, while reported as excellent, with collections good. others hold that it is due to a general read- Watches and jewelry.—Factories are doing a justment. Recently more seasonable weather very satisfactory amount of business, and the has stimulated retail trade. Shipments of demand at present shows no signs of abating. wholesalers continue satisfactory with the shoe Jewelry looks forward to a continuation of manufacturers showing the greatest activity. good trade and is showing a material increase Conditions continue favorable and while inover last year's volume. Sales in the optical creases are not in the same ratio as heretofore, supplies are better than last year, but the it would seem that this slight reduction in foreign situation has affected this line since a volume is due to a conservative attitude. It number of the lenses used in this country are, is perhaps a favorable sign, indicating that under normal conditions, of European origin. business men are carefully examining the Wool and woolens.—The mills are still re- future. ported as operating upon their accumulated The railroad earnings in the district continue supplies to a large extent, but the quoted value, to show increases. Transportation problems of wool has shown no decline. Speculative due to the shortage of cars and the congestion buying has advanced the price in the Middle at freight terminals have received the careful West from 1 to 2 cents per pound. Woolens attention of railroad operators for the past are in good demand, sales are better, and few months. While the volume of freight toncollections improved. nage remains at a high level, it appears that it Clearings in Chicago for the first 20 days of is being handled more expeditiously. On May May were $1,197,000,000, being $259,000,000 1 the roads throughout the country reported a more than the corresponding 20 days of May, surplus of cars as against a shortage the first of 1915, and $148,000,000 more than the first 20 the previous month. days in April, 1916. Clearings reported by Generally speaking, labor conditions in this 17 cities in the district outside of Chicago district are satisfactory. From indications it amounted to $223,000,000 for the first 15 appears that there is little or no unemployed days of May, 1916, as compared with $143,- labor in the district; Wages have gone up in 000,000 for the first 15 days of May, 1915,practically every industry. A few strikes have and $220,000,000 for the first 15 days of April, been reported from various sections of the dis- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

286 1'EDBBAL BESEEVE BULLETIN. 3ffN® 1,1916, trict, but these have been settled with little or are figures on the wheat crop in the States no difficulty. within this district, taken from the Govern- Reports on the principal crops are of especial ment report of condition as of May 1: importance at this time of the year. Below Acreage. Condition. Forecast. P d a e o b r n a c e n e d - n . t h re a m r A t v o a c e i r b s n e e t s i e n d g . M 19 a 1 y 6 l . , M 19 a 1 y 5 l . , a 1 v 0 e - r y a e g a e r . - M 19 a d 1 y i 6 t , i 1 o f r n c o . o m n- m F a in te a , l 1 e 9 s 1 ti 5 - . A C M p f h r r a o a . n y m 1 g l . e to Arkansas 5 232,000 87 97 90 2,685,000 2,750,000 3 Illinois 33 1,494,000 62 92 85 18,062,000 53,200,000 5 Indiana 30 1,579,000 65 93 84 19,193,000 47,300,000 7 Kentucky 6 910,000 87 78 88 11,321,000 9,900,000 2 Mississippi . . . 6 7,000 85 84 87 89,000 100,000 -7 Missouri 20 1,784,000 70 92 87 21,854,000 34,108,000 4 Tennessee 43 886,000 89 85 90 10,251,000 9,030,000 1 These figures show that the per cent of and it is from 10 days to 2 weeks behind its abandoned acreage this year in the principal normal development at this writing. It was wheat-producing States of the district was reported that a little more than half of the unusually large and the report of condition usual amount of fertilizer has been used this is below both the 1915 and the 10-year aver- year, but as cotton has never been heavily age. Reports of condition, however, show im- fertilized in this district this would not appear provement as compared to April 1 in each to be of prime importance. Weather condi- State of the district except Mississippi. Reports tions have improved in the past week or two, on the wheat situation from correspondents and from present indications the crop will deand personal investigations are, however, some- velop rapidly. what pessimistic. The stand of wheat in cen- The condition of corn seems to be much bettral Missouri and Illinois is light. Corre- ter than that of wheat. The crop has been spondents report the wheat is making a poor planted in all parts of the district and is now showing, and the complaints of injury to the 2 or 3 inches high, except in the most northerly crop by chinch and green bugs are quite fre- sections. Conditions were favorable for the quent. Many farmers report that they have planting, and prospects for this crop are enhad to plow up their winter wheat and put in tirely favorable. In some of the southern secother crops. It is possible, however, that with tions of the district the fields have been cultifavorable conditions from now on the crop will vated once. Oats, alfalfa, clover, and other exceed present expectations. fodder crops are reported to be growing nicely, The condition of the cotton crop in Arkansas and the outlook is promising. and other cotton-producing States of this dis- Reports from the strawberry producing sectrict is satisfactory. There has been an in- tions of Arkansas, Tennessee, Kentucky, and crease in acreage this year as compared to 1915, Missouri are entirely favorable. The crop is variously estimated at from 10 to 15 per cent. moving to market rapidly. The week ending The final figures on the cotton acreage will May 20, western Tennessee shipped daily over probably show a substantial increase as com- 100 cars of strawberries; Arkansas about 50 pared to last year, but somewhat smaller than per day. Missouri berries are now coming in 1914. From reports it appears that the land into the market, and six or eight cars are being was well prepared for planting this year and shipped daily from the Ozark district. that there was sufficient moisture in the Truck farming in the district has been reground. The development of the crop to date tarded by the late spring. The ground, howhas been somewhat retarded by the late spring ever, was in good condition to be worked, and Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

JUNE 1,1916. EEDEBAL RESERVE BULLETIN"* 287 the crops are gradually coming to market. DISTRICT NO. 9—MINNEAPOLIS. Under the influence of warmer weather during Very high winds early in the month created the last few days, radishes, lettuce, and other local damage in the small-grain territory, by similar vegetables, are now plentiful. Aspara- uncovering a considerable amount of seed that gus is beginning to come into market. Reports had been planted. This necessitated reseedindicate that the cherry crop will be later than ing. This damage has been repaired and will usual, and will not reach the market before not affect the yield. Cold and rainy weather the middle of June. Apples have been re- during the earlier part of the month hampered ported to be in excellent shape, and peaches farm operations and increased the amount of in only fair condition. land that is being disked in. Wheat seeding In the live-stock market there has been an has been practically completed, and it is apincrease in the receipts and shipments of cattle parent that there will be some shortage in this April as compared to April, 1915, but the acreage due to the lack of fall plowing last hog, sheep, and horse and mule markets have year and the difficulties encountered in offnot been as active as at this time a year ago. setting it with spring work. There is a dispo- The principal decrease comes in the horse and sition in some quarters to estimate the demule, and is due probably to lessened activity crease in acreage at 15 per cent, but a review of the foreign Governments in this market. of the reports from all parts of the district, The money market in this district remains and a careful survey of conditions, seems to stationary. A few bankers report tendencies indicate that this may easily prove to be toward higher rates for discount, but this seems excessive. It is probable that the actual to be due to local influences rather than a decrease will prove to be from 5 to 8 per cent. general movement. It seems probable that Any shortage in wheat will be considerably no improvements in rates may be looked for more than offset by a very large increase in in the immediate future. The average rate of barley and rye acreage, and a substantial rediscount in St. Louis is probably not over 4| increase in flax. The total crop production is per cent; in Louisville not over 5 per cent, and not likely to be impaired to any extent. All in smaller communities, somewhat higher rates. reports indicate that corn will be about up to Commercial paper is freely quoted at from 3 to the average in acreage, and with the promise 3| per cent for best names; other names not of favorable planting conditions, this year is over 4. The bond market shows little or no likely to develop a heavy crop. change, and is not as active as it was 60 to 90 An unfavorable element in the crop situation days ago. is that throughout a very large part of the The clearings in the larger cities show gains grain territory, farmers have been compelled similar to those noted in the last few months. to seed without proper preparation of the The percentage of increases in clearings for the ground. A large amount of wheat has been week ending May 13, is as follows: Evansville, disked in to get it seeded before the end of 11.8 per cent; St. Louis, 21.6 per cent; Louis- the usual planting season. Barley, rye, flax, ville, 18.8 per cent; Memphis, 15.4 per cent; and corn, however, will have a more favorable Little Eock, 33. start. April clearings of this bank amounted to The seeding on stubble land has the advan- 199,260 items, or a total of $88,784,771,67. tage of very excellent moisture conditions pre- This shows a very slight loss as compared to vailing generally over the district. In case March, but a substantial gain as compared to the season shows a good average rainfall April, 1915. there will be no difficulty in securing a good Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

288 EEDEBAL BESEBVE BULLETIN. JUNE 1,1916. crop. The danger that confronts the grain crop. No damage has been reported from territory is that the planting on the poorly Nebraska, where the wheat is said to be in prepared land will suffer severely should dry excellent condition. Alfalfa, the value of weather develop during the middle of the which has reached an enormous figure in this growing season. district, is reported in splendid condition. Sheep, cattle, and horses are bringing high Delay in grain shipments by reason of car shortprices, and with the amount of grain still left age again occurred in various sections during in the farmers7 hands the agricultural popu- the month, but relief is appearing. There is lation is enjoying unusual prosperity. Wheat every indication, however, that there will prices are holding up strong, and there is some again be a severe car shortage when the wheat increase in the amount of grain coming to harvest begins to move. terminals. Minneapolis and Duluth are show- Some apprehension is expressed with regard ing the first increase in receipts since the to securing sufficient labor for the harvest planting season started. fields, and an effort is being made through General business conditions are excellent, cooperation between the labor departments and both wholesale and retail trade are brisk. of the States and Nation to supply this de- Industrial concerns are fully occupied, and mand. While there is some indication of a labor is enjoying ample opportunities of em- disposition on the part of labor organizations ployment at good wages. to take advantage of present prosperity to Mining operations in northern Michigan and urge their demands, and increases in wages are northern Minnesota are starting with a rush, being commonly reported, there are no labor and iron-ore production is expected to reach disturbances worthy of notice in this district. record figures this year. The mines are ship- Live-stock receipts for the first four months ping the maximum capacity of the ore boats. of this year at the six principal markets in this Copper production, both in northern Michigan district are as follows: Cattle—1916, 1,316,757; and Montana, will maintain the extremely 1915, 1,152,385; increase, 164,372. Hogs— high level of last year. 1916, 3,798,610; 1915, 3,200,916; increase, 597,694. Sheep—1916,1,756,807; 1915,1,939,- DISTRICT NO. 10—KANSAS CITY. 559: decrease, 182,752. May has been generally favorable for farm For a time it appeared that all feeders of work, but vegetation is from a week to 30 days live stock would lose money on their winter's behind, unseasonably cool weather, frosts, operations, but prices have advanced so rapidly snow, and freezing temperatures having been that they have now reached a high level and reported from various parts of the district. the stock being marketed at this time shows Pastures are in excellent condition. Corn a nice profit. Stockers and feeders are higher planting is well advanced, the corn coming up than ever known at this time of the year. generally. There is a substantial increase in The movement of cattle from Texas and the acreage. The early part of the month was New Mexico to the long-grass pastures in Kanunusually dry, but recently beneficial rains sas and Oklahoma is greater this year than the have fallen in various sections. two prior years. The total number going to An estimate of the wheat crop made by these pastures is now estimated at over 200,000. grain dealers in recent session is considerably This movement has been stimulated by the below the figures made by State authorities. drought in large areas in the range district of There has, undoubtedly, been insect damage Texas. in both Kansas and Oklahoma. This has been The demand for money to finance the cattle serious in certain sections, but, taken as a interests is not so heavy now as it was some whole, the promise is for more than an average weeks ago. A steady demand from the south- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

JUNE 1, 1916. FEDERAL BESERVE BULLETIN. 289 west for loans to restock with young steers the ent oil concerns in the world, capital $50,000,pastures that have been vacated by shipping 000. The properties in this organization inthe older cattle to the long-grass countries is clude several large Oklahoma and Kansas reanticipated. fineries, together with about 14,000 barrels of There has been more money loaned to the oil production daily. cattle owners, and is now so outstanding, than In all the mining fields prosperity and enorfor a number of years. This is partly on ac- ous output are the order of the day, with prices count of the high price of stock cattle and feed- continuing highly satisfactory. In the zinc ers and because of the development and increase fields several new mills are almost completed of the cattle business. Reports from all over and ready to commence operations. Various the district are that cattle are in a thrifty and new companies have been organized and are healthful condition. securing leases for prospecting. Building activities have been much retarded The high price of silver is causing much acby reason of the weather, and, while the lum- tivity and will permit of the dewatering of variber trade is considerably ahead of the same ous mines which could not heretofore be profitperiod in 1915, business has been much below ably operated. expectation. Production has exceeded de- The value of tungsten being produced in the mand. In view of the fact that farmers are Boulder (Col.) field in 1916 is estimated connow very busy in the fields, trade is unusually servatively at a million dollars monthly. The active for this season of the year. There is gain over last year's value—for the first four every prospect for great building activity all months of the two years only—represents over the territory, and the excess of lumber $3,750,000, or 1,500 per cent. It is estimated now being produced will shortly be in strong- that 10,000 men are now employed in this field. demand. The retail lumber business has been The value of zinc and lead ores shipped from constant and satisfactory, a very considerable the Missouri-Kansas-Oklahoma district during percentage above that of last year. one week in April was 33 J per cent greater than the previous record week's shipments. The profitable price for crude oil continues, but the premiums heretofore paid in certain Eecent reports show continued increases in localities have been noticeably reduced. There bank deposits and clearings, Kansas banks is a general conviction, however, that the mar- showing an increase of $15,000,000 in approxiket will continue to advance, and this has re- mately three months and breaking all records. sulted in maximum activity in the various dis- Postal receipts at all important centers in tricts, making up the mid-continent oil field. the district are reaching new high levels. Com- It is now estimated that more than 1,800 drills mercial agencies record but 209 commercial are at work, and these developments are cover- failures in the district for the first quarter of ing a constantly expanding area. It is esti- 1916, with no bank failures. Wholesalers, jobbers, and retailers report a splendid business, mated that there will be at least twice as -many with collections unusually good. While it is wells drilled during 1916 as were drilled last recognized that the enormous gains made each year. While the cost of drilling operations is month in general business can not continue much greater, this item of increased expendiindefinitely, there is no immediate indication ture is more than made up by the market price of reductions. In no line of business does there of petroleum. seem to be any marked dullness in this district. The largest sale of oil leases in the history of Discount rates have experienced no importhe oil business was made at Pawhuska, Okla., tant change, and the spring demand has been April 20, bringing to the Osage Indians almost less than anticipated. Security prices are $1,500,000 in bonuses. notably firm, with upward tendencies. Banks The past 30 days witnessed the organization generally have had difficulty in keeping their in this district of one of the largest independsurplus funds profitably employed. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

290 FEDERAL RESERVE BULLETIN. JUNE 1, 1916. DISTRICT NO. 11—DALLAS. twelfth of the cottonseed oil production of There is no indication of any material change Texas. in the business outlook in this district, and re- In the extreme west and northwest, or Panports received from all sections continue most handle section of the district, conditions are favorable. The only exception to this con- above normal and excellent reports are redition may be said to be in the extreme south- ceived. The situation across the border has west part of Texas, where, on account of a of course affected business and halted operadrought of several months7 duration, business tions in various lines. Investment of outside has not been normal. During the present capital is awaiting the restoration of normal week some rain has fallen in that section, but conditions, and when established an unprecehardly sufficient to be of material benefit. The dented era of profitable trade is the forecast. cattle industry particularly has suffered from The cattle industry shows unusual activity in lack of rain in that large area. Eange condi- the west. Cattle wintered well, and with good tions have been bad, and as the cattle business range conditions, and high prices obtaining, in Texas is one of vital importance, it is re- the outlook is very promising. A substantial flected in trade generally. falling off in the demand for steers is noted. Other portions of the district, especially in This has caused stockmen to renew their paper the north and east, have had more than the with local banks, who have sought an outlet average rainfall, and as a consequence the 1916 with this bank, all of which has been reflected crop is in varied stages of development. Speak- in the large amount of live-stock paper offered. ing generally the staple field crops are very late. The sheep business is likewise reported as Corn is suffering from the work of the chinch prosperous. Prices are higher than they have bug in many counties, and cotton, of which ever been in the sheep sections. Wool buying conservative estimates place the increased is active, with prices as good, if not higher, than acreage at 10 per cent over last year, is liable last season, and production above normal. to extensive ravages by boll weevil, due to The fruit crop in the Pecos Valley of New late planting and the warm late fall of 1915. Mexico, estimated to have reached from 1,000 The wheat and oat crops were not so heavily to 1,500 cars, is almost a total loss, due to a damaged by the winter freezes as was at first heavy freeze on April 19. There will be no supposed, and with the recent rains, general fruit marketed from that section this year, over practically the entire grain belt, the out- which will mean a loss of some $200,000. look for those crops is favorable. The grain The New Mexico hay crop is good. The first crop, however, is still behind the condition at cutting was injured by the freeze, and the the same time last year. fields are now being cut short, to give the sec- The Texas Grain Dealers Association have ond crop an early start. given out the following report on averages, as The lumber mills of that section are running of May 15: Wheat acreage 67^ per cent, con- overtime, and the industry is very active. In dition 77 per cent; oat acreage 84 per cent, con- Texas there is an evidence of an overproduction dition 89 per cent; corn acreage 92J per cent, of lumber, and the mills are curtailing their condition 82^ per cent. Our own information operations * to some extent. Prices have confirms the substantial correctness of these dropped some by reason of this condition. estimates. The grain has suffered little from The larger cities, however, report a good derust, and a normal production is anticipated. mand for building materials. Rice planting is practically over. Sugar Post-office receipts of six of the principal cane is reported as doing well. A great in- cities of the district for the month of April, crease in the acreage of peanuts has been 1916, as compared with April, 1915, show an planted, with an oil output estimated at one- increase of 12.3 per cent; the figures being as Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

JUNE 1, 1916. FEDERAL KESEBVE BULLETIN. 291 follows: April, 1915, $219,106; April, 1916, trade. Advanced prices of this class of mer- $246,085. chandise have created activity in this line. As evidencing the healthy condition of busi- The first warm weather of the season caused ness, it is interesting to note the bank clearings active buying by retailers of summer goods. of the reserve cities of the district, which show Retail trade is good. Business with large mailan increase of 9| per cent for April, 1916, over order houses shows a 22 per cent increase with April, 1915. All of the cities show good in- equal demand for all classes of merchandise. creases, with one exception, due to local con- Building operations over all sections of the disditions. The figures are as follows: April, trict are steadily increasing. There is no evi- 1915, $118,216,439; April, 1916, $129,405,937. dence of any unemployment of labor. A comparison, as of May 1, of the deposits DISTRICT NO. 12—-SAN FRANCISCO. and loans and discounts of the banks in reserve cities of Texas shows an increase of approx- Agricultural conditions have been unfavorimately 20 per cent over last year. Generally able. In the northern part of this district the speaking, the demand by member banks in this season has been cold and backward. In Calidistrict is lighter than at this time last year, fornia, although the season's precipitation is except in the cattle sections, where the demand above normal, there has been almost no rainis now very much heavier, due very largely to fall since February, with consequent important the fact that the banks in those sections are shrinkage in pasturage, hay, and grain. Wheatscarrying a large amount of live-stock paper, growing sections report 15 to 25 per cent less which has heretofore been carried outside of acreage than last year. Frost on May 6, an this district. unusually late date, caused serious damage to Failures in the district for the period from. grapes, prunes, apricots, and potatoes. Some April 15 to May 15, 1916, were 65, with liabil- estimates from the Sacramento Valley have ities of $830,399; for the same period 1915 placed the damage as high as $2,000,000 or there were 79, with liabilities of $1,380,270. $3,000,000. Reports seems to indicate that A tabulation of replies to inquiries from all the crop of grapes will be about 50 per cent of parts of the district show collections as good, normal, while prunes, apricots, and peaches and in keeping with the increased volume of will be from 60 to 75 per cent. Increased trade. prices will doubtless yield average financial Transportation lines report an increase of returns to growers nearly equal to normal. approximately 15 per cent in freight, and 20 Increased production of sugar beets is reper cent increase in passenger traffic. All lines ported because of high prices for sugar. Both continue to report a serious shortage of cars, Hawaiian and sugar-beet interests are prosand no improvement in the situation. pering. Returns from the 1915 apple crop of Wholesale grocery houses are having a sub- the Northwest have been highly gratifying. stantial trade, and report an increase.of 33J In spite of short pasturage in parts of Caliper cent over 1915, with collections in keeping fornia the live stock industry is prosperous with the increased volume. throughout this district generally. An inter- Jobbers and wholesalers in dry goods, esting report comes from one section of Calinotions, millinery, and similar merchandise are fornia of prosperity by reason of rapid imclosing a very satisfactory spring business, and provement in the grade of beef cattle and in report that orders to their traveling salesmen the extension of the dairying industry. Cattle reach the high-water mark. On account of and hogs are commanding full prices. Sheep the uncertainty in the delivery of goods, and command very high prices. Shearing is about the shortage of dye-stuffs, merchants in the completed and much wool has been sold at 2 smaller cities have bought heavily for early fall to 5 cents per pound more than last year. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

292 FEDEEAL RESEEVE BULLETIN. JUNE 1,1916. The lumber industry of the Northwest is Utah. The additions to wealth from mining now very active, mills generally running to in this district just now are well typified in the capacity and logging camps handling maxi- report that the 1915 profits of the operating mum output. Prices now yield satisfactory Coeur d'Alene companies, near Spokane, Wash., profits to operators. approximated $10,500,000. April shipments of petroleum in California At Pacific Coast ports shipbuilding continues averaged 292,970 barrels daily, exceeding those with unabated activity, and import and export of any previous month except June, 1914. trade shows steady gain. For instance, at Production increased about 3,000 barrels per Seattle this commerce for the first four months day, while shipments increased nearly 50,000 of this year totals $114,000,000, as against barrels per day, reducing the amount in $60,000,000 for the first four months of the storage more than 1,400,000 barrels. Many preceding year. new wells are drilling. Large trade is reported throughout the dis- High prices for tungsten have created such trict, with good collections. Increase in bank activity in its mining as to cause "boom" con- deposits, clearings, building construction, real ditions in certain sections. There is also estate sales, postal receipts, as reported by the much activity in mining quicksilver, antimony, principal cities of this district, all indicate conmanganese, and dolomite. This district has tinued expansion of business. There has been profited largely by the great advance in the a steady- increase of loans, but much less proprice of silver. Copper at both record output nounced than the increase of deposits. Credit, and prices is enriching especially Arizona and consequently, continues easy. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

JUNE 1, 1916. FEDERAL RESEEVE BULLETIN.- 293 DISTRIBUTION OF DISCOUNTS BY SIZES bought in the open market by the Atlanta AND MATURITIES. bank and its branch during the month under consideration. Discounts of commercial paper reported by The total number of bills discounted during Federal Reserve Banks for the month of April the month was 7,031, compared with 6,209 in aggregated $11,521,400, or 22.7 per cent in March and 5,086 in February of the present excess of the discounts for the preceding year. The average size of the paper discounted month, and of 9.2 per cent of like figures for during the month was about $1,640 compared April, 1915. About 59 per cent of the month's with an average for the previous two months discounts, as against 68 per cent in March, is of about $1,510, indicating a relatively large credited to the three southern banks. Chiincrease during the month in the discount of cago's share of the month's discount business larger-sized paper. These averages vary beis 15.7, Philadelphia's 8 per cent, while Kansas tween $830 and $870 for the Minnesota and City is credited with 4.9 per cent of the total Kansas City banks, $4,900 for the Cleveland April business, as against 8.5 per cent in March. and $5,250 for the Boston bank. For the The total discounts for the first four months of three southern banks the average is slightly the present year were $39,688,200, compared below $1,500. with $47,192,100 for the corresponding period About one-third of the number and one-half in 1915. The decreases are largest for 60-day of the amount of the paper discounted during and 30-day paper, while the amount of 6-month the month was medium-sized paper, in depaper (agricultural and live stock paper maturnominations of $1,000 to $5,000. Small notes ing after 90 days) discounted for member banks (in amounts up to $250) constituted about oneduring the present year was about 1.2 millions quarter of the total number, though only 2.3 larger than in 1915. per cent of the aggregate amount of bills dis- Commodity paper, mostly secured by cotton, counted during the month. Over 75 per cent discounted during the month by 4 banks of the number of small-sized notes, as against totaled $1,370,700, constituting less than 12 65 per cent of all notes discounted, were handled per cent of the total discounts for the month, by the three southern banks. as against 18.3 per cent for March and 23.4 per Of the total paper discounted during the cent for February. Over 98 per cent of this month, 14.6 per cent was paper maturing class of paper was handled by the Richmond within 10 days at the time of rediscount; 23.3 and Atlanta banks, of whose total discounts for per cent paper maturing after 10 but within 30 the month commodity paper constituted 24 days; 20.6 per cent, paper maturing after 30 and 35 per cei\t, respectively. but within 60 days; and 26.2 per cent, paper Trade acceptances discounted during the maturing after 60 but within 90 days. The month by 7 banks aggregated about $240,000, largest absolute and relative increase is shown compared with about $299,000 during March for 10-day paper, in many cases of large denomiand an average of about $330,000 for the first nations. The share of 30-day paper discounted quarter of the year. Of the total of $1,229,200 likewise shows a large gain, while those of 60 of this type of paper discounted during the and 90-day paper show corresponding decreases. first four months, Richmond is credited with About 15.3 per cent of the total discounts was about 42 per cent; Atlanta, including its New agricultural and live stock paper, maturing Orleans branch, with over 32 per cent; and less after 90 days. Over 75 per cent of this class of than 10 per cent by St. Louis. The monthly paper was handled by the Dallas, Kansas City, total is exclusive of $926,100 of trade accepand Chicago banks. tances based upon foreign trade transactions Less than 8 per cent of the total number of and purchased mainly by the eastern banks, member banks—or 606 out of 7,631—reported also of $7,400 of domestic trade acceptances at the end of the month, rediscounted paper Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

294 FEDERAL RESERVE BULLETIN. JUNE 1, 1916. with the Federal Reserve Banks, as against 535 North Carolina to the number of 28 secured in March, and the same number of 606 in about 1.7 millions of rediscounts, 99 banks in April, 1915. Dallas reports the largest num- Texas over 1.4 millions, 23 banks in Illinois ber of member banks accommodated during over 1.1 millions, 34 banks in South Carolina the month—121—or about 20 per cent of the over 0.8 million, and 10 banks in Pennsylvania total number of member banks in the reserve over 0.7 million. The combined share of redistrict. Richmond shows a total of 106 banks discounts secured by 194 banks in these five accommodated out of a total of 511 member States is over one-half of the total amounts of banks in the district. Member banks discounts reported to the Board for the month. in Commercial paper, exclusive of bankers' acceptances, rediscounted by each of the Federal Reserve Banks during the month of April, 1916, distributed by sizes. NUMBER OF PIECES AND AMOUNTS. [In thousands of dollars.] To H100. O to v e $ r 2 1 5 1 0 0 . 0 O t v o e r $ 5 $ 0 2 0 5 . 0 O t v o e $ r 1 , $ 0 5 0 0 0 0 . O t v o e r $ 2 $ , 1 5 , 0 0 0 0 . 0O t v o e r $ 5 $ , 2 0 , 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 0.6 4.5 10 21.1 186.1 127.5 77.5 419.8 1.1 3.6$5,250 New York 15 3.3 18.0 31.8 46 71.9 19.7 5.2 149 150.0 2.1 1.3 1,000 Philadelphia 15 38 5.8 12.7 35.0 100 194.8 352. 126.3 194.0 334 922.7 4.8 8,0 2, 760 Cleveland 10 1.7 2.2 12.9 31 68. 3 49.9 7.4 265.0 407.4 1.2 3.5 4,900 Richmond 346 454 182.1 419 323.2 388 679.1 287 1,132.0 609.5 335.4 2,067 3,331.0 29.4 28.9 1,610 Atlanta(including New- Orleans branch) 38.0 148 56.5 153 123. 6 190 322.9 432.6 219.2 352.2 995 1,553.6 14.2 13.5 1,560 Chicago 95 17.3 112 48.1 172 137.4 192 326.0 488.9 393.9 394.2 790 1,808.5 11.2 15.7 2,290 St. Louis 23 4.0 32 12.7 32.4 60 93.2 37.4 30.3 30.0 180 240. 2.6 2.1 1,340 Minneapolis 19 3.2 36 12.5 4329.0 42 57.5 19.7 146 121.9 2.1 1.1 830 Kansas City 112 19.2 178 66.0 154 110.8 135 204.2 109.1 52.4 650 564.1 •9.2 4.9 870 Dallas 78.2 304 111. 2 199 140.3 210 344.5 528.2 375.7 293.0 1,470 1,876.2 20.9 16.3 1,280 San Francisco 1.6 22 8.8 20 14.5 23 41.7 21.7 16.2 20.8 87 125. 6 1.2 1.1 1,440 Total. 358 27.81,367 235.81,373 533.3 1,304 995.4 1,427 2,425.2 856 3,378.22541,963.6 92 1,962.1 7,03111,521.4100.0100.0 1,640 PERCENTAGES OF AMOUNTS OF EACH CLASS TO TOTAL. Banks. To $100. O to v e $ r 2 $ 5 1 0 0 . 0 O to v e $ r 5 $ 0 2 0 5 . 0 O to v $ e 1 r , $ 0 5 0 0 0 0 . O 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 $ r 1 0 $ , 5 0 , 0 0 0 0 . 0 $1 O 0 v ,0 e 0 r 0. Total. Boston 0.1 0.6 1.1 5.0 44.3 30.4 18 5 100 0 New York 0 1 2 2 12 0 21 2 47 9 13 1 3 5 100 0 Philadelphia .1 .6 1.4 3.8 21.1 38.3 13.7 21 0 100 0 Cleveland .4 .5 3.2 16.8 12.3 1.8 65.0 100.0 Richmond .2 1.9 5.4 9; 7 20 4 34.0 18 3 10 1 100 0 Atlanta (including New Orleans branch) .6 2.4 3.6 8.0 20<8 27.8 14.1 22.7 100 0 Chicago .1 1.0 2.7 7.6 18.0 27.0 21.8 21.8 100.0 St. Louis . .2 1.6 5.3 13.5 38.8 15.5 12 6 12 5 100 0 Minneapolis 2.6 10.2 23.8 47.2 16.2 100.0 Kansas City .4 3.4 11.7 19.7 36.2 19.3 9.3 100.0 Dallas .3 4.2 5.9 7.5 18.4 28.1 20.0 15.6 100.0 San Francisco. .2 1.3 7.0 11.5 33.2 17.3 12.9 16.6 100.0 Total .2 2.1 4.6 8.6 21.1 29.3 17.1 17.0 100.0 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

JUNE 1, 1916. FEDERAL RESERVE BULLETIN. 295 Commercial 'paper, exclusive of bankers' acceptances, discounted during April, 1916, by each of the Federal Reserve Banks, distributed by-States and maturities as of date of discount. [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 N o c d f c u a o b m t m a e b n d m e k . r o s - m w P i a d t t a h a u p y i r n e s i . r n 1 g 0 m w d a a i a f t y t t h e s u r i r n b i 1 n u 3 0 g t 0 m w d a a i a f t y t t h e s u r i 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 s u r i r n b i 6 n u 9 0 g t 0 m a P a d ft t a a e u p y r r e s i 9 . r n 0 g d 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. 1—Boston: Connecticut. ... 72 1 3.1 6.6 4.5 14.2 Maine 69 1 2.6 2 6 Massachusetts . 167 4 47.0 327.0 374.0 New Hampshire .... 56 1 5.5 4.5 10.0 Rhode Island 17 Vermont 48 2 19.0 19.0 Total..... 429 9 50.1 352.6 10.0 7.1 419.8 District No. 2—New York: New Jersey 132 4 .5 10.7 33.6 23.6 68 4 New York... . 482 6 3.9 26.8 31.8 19.1 81 6 Connecticut 15 Total...... 629 10 4.4 37.5 65.4 42.7 150.0 District No. 3—Philadelphia: Delaware 24 1 3.8 3.9 7 7 New Jersey . ... 71 5 31.4 66.7 68.4 166 5 Pennsylvania 533 10 678.3 18.7 24.4 22.1 5.0 748.5 Total 628 16 678.3 50.1 94.9 94.4 5.0 922.7 District No. 4—Cleveland: 72 6 6.8 23.7 1.4 31 9 Ohio . 375 8 132.0 202.2 29.5 8.0 3.8 375.5 Pennsylvania 299 West Virginia 13 Total 759 14 132.0 209.0 53.2 9.4 3.8 407.4 District No. 5—Richmond: District of Columbia 15 1 16.2 37.1 53 3 Maryland 97 9 4.8 27.7 122.0 5 1 159 6 North Carolina 79 28 170.0 692.2 357.7 434.8 18.5 1,673.2 South Carolina 76 34 151.7 275.9 279.0 116.7 823 3 Virginia 140 28 26. i 156.7 190.1 129.1 27.3 529 3 West Virginia 104 6 13.6 20.4 58.0 .3 92.3 Total 511 106 196.1 1,019.0 888.0 1,060.0 167.9 3,331.0 District No. 6—Atlanta: Alabama 93 23 2.0 25.4 164.8 222.8 35.2 450.2 Florida 56 7 4.4 22.6 34.3 3.3 64 6 Georgia 111 36 86.9 172.1 382.6 55.8 697.4 Louisiana ... 21 8 106.1 53.2 15.9 10.3 185 5 Mississippi 18 1 9.2 9 2 Tennessee 93 10 4.0 9.6 68.3 63.8 i.6 146.7 Total 392 85 6.0 232.4 490.2 719.4 105.6 1,553.6 District No. 7.—Chicago: Illinois . 318 15 586.0 424.4 38.6 40.6 16 9 1 106 5 Indiana 196 17 37.8 55 3 48 3 29 3 170 7 Iowa 349 37 4.2 75.7 145.2 115.2 165.1 505 4 Michisan 77 4 1.0 3.1 6.0 9.9 20.0 Wisconsin 51 1 2.2 3.7 5.9 Total 991 74 591.2 537.9 244.4 210.1 224.9 1,808.5 District No. 8—St. Louis: 65 4 30.0 1 6 5.4 .8 37 8 Illinois 157 8 1.5 7.3 6.3 11.7 26.8 Indiana 61 2 4.0 6.4 6.4 16 8 68 3 2.0 17.8 20.4 40 9 Mississippi 18 1 4.9 1.1 5.5 11.5 Missouri 81 12 12.0 15.1 29.9 27.9 84.9 Tennessee 20 2 20.4 1.4 .8 22.6 Total 470 32 74.8 50.7 73. 9 41.2 240.6 District No. 9—Minneapolis: Michigan 31 Minnesota 281 12 4.3 9.4 39.7 53.4 Montana 68 1 2.6 2.5 .7 4.5 10.3 North Dakota. 154 2 9.1 9.1 South Dakota 122 9 9.7 1.1 28 4 39 2 Wisconsin 88 1 3.0 6.0 .9 9.9 Total 744 25 5.6 22.5 12.1 81.7 121.9 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

296 FEDERAL RESERVE BULLETIN. JUNE 1, 1916. Commercial 'paper, exclusive of bankers' acceptances, discounted during April, 1916, by each of the Federal Reserve Banks, distributed by States and maturities as of date of discount—Continued. [In thousands of dollars.] Paper Paper Paper Districts and States. o N f b m u a m n e k m b s e . b r er a N o c d f c u a o b m t m a e b n d m e k . r o s - m w P i a d t t a 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 y t t h e u s r i r n b i 1 n u 3 0 g t 0 m w d a a i a f t y t t h e s u i r r n b i 3 n u 6 0 g t 0 w m d a a i a f t y t t h e s u r i r n b i 6 n u 9 0 g t 0 m a P a d ft t a a e u p y r r e s i 9 . r n 0 g d 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 7.4 7.4 Kansas 220 33 8.7 23.7 52.5 115.8 200.7 Missouri.. .. 53 6 6.1 9.6 20.4 36.1 Nebraska 199 9 20.8 3.6 40.4 64.8 New Mexico 9 Oklahoma ....... . . . 305 44 13.7 26.3 32.6 59.7 123.4 255.1 Wyoming 34 Total 940 94 13.7 35.0 82.6 125.4 307.4 564.1 District No. 11—Dallas: Arizona 6 1 13.1 13.1 Louisiana 10 1 6.3 6.3 New Mexico 28 10 36.3 99.9 1(54.9 301.1 Oklahoma 34 10 5.0 5 1 17.0 16.2 91.3 134.6 Texas. . . . 539 99 111.2 291.8 495.2 522.9 1,421.1 Total . . . 617 121 5.0 122.6 345.1 611.3 792.2 1,876.2 District No. 12—San Francisco: Alaska 1 Arizona 7 California 262 13 9.7 24.8 20.3 24.4 79.2 Idaho 58 .4 .9 11.1 12.4 Nevada 10 Oregon 82 1.0 30.1 2.1 34.0 Utah 23 Washington 78 Total 521 20 10.5 26.2 51.3 37.6 125.6 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 r a o . c - o - f w m i P a d t t a a h u p y i r n e s i r . n 1 g 0 d w m a a i a y f t t t h s e u , r i r n i b 1 n 3 0 u g 0 t d v m a a /i a y f t t t s h e u , r i r n i b 3 n 6 0 u g 0 t d w m a a i a y f t t t s h e u , r i r n i b 6 n 9 0 u 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 r n r c t c i d e o a d i m l s . - - Per cent. days. days. days. No 1 —Boston 429 9 50.1 352.6 10.0 7.1 419.8 3.6 No 2.—New York 629 10 4.4- 37.5 65.4 42.7 150.0 1.3 No. 3.—Philadelphia 628 16 678.3 50.1 94.9 94.4 5.0 922.7 8.0 No 4 —Cleveland 759 14 132.0 209.0 53.2 9.4 3.8 407.4 3.0 No 5 —Richmond 511 106 196.1 1,019.0 888.0 1,060.0 167.9 3,331.0 28.9 No 6—Atlanta 392 85 6.0 232.4 490.2 719.4 105.6 1,553.6 13.5 No. 7.—Chicago ". 991 74 591.2 537.9 244.4 210.1 224.9 1,808.5 15.7 ] N N N N vg o o o o r 0 . . . 9 1 1 1 § . 0 2 1 — — . . . — — — M s S K D t i . a n a a n L n n ll e s o a F a a s u r s p i a o s n C li c i s t i y sco 4 9 6 5 7 7 4 1 4 2 0 0 7 4 1 1 3 2 2 9 2 2 0 5 4 1 1 5 3 . . 0 7 1 3 7 1 2 5 5 4 2 0 . . . . . 0 6 6 8 5 3 5 2 2 8 4 6 0 2 2 5 . . . . . 2 7 5 6 1 6 1 5 7 1 1 2 1 3 5 1 2 . . . . . 4 3 9 3 1 3 7 4 3 0 8 9 7 1 7 1 2 . . . . . 4 6 2 7 2 1,8 2 5 1 1 7 4 6 2 2 6 0 5 4 1 s . . . . 6 6 1 9 2 1 4 2 1 1 6 . . . . . 9 1 1 1 3 Total for April 7,631 606 1,676.8 2,687.0 { 2,373.2 3,017.1 1,767.3 11,521.4 Per cent 14.6 23.3 20.6 26.2 15.3 100.0 100.0 . Total for Jan.-Apr., 1916. 2,049.7 6,739'.2 11,467.5 ! 13,940.0 5,491.8 39,688.2 Total for Jan.-Apr., 191o... 10,104.4 17,807.0 | 14,960.3 4,320.4 47,192.1 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

JUNE 1,1916. FEDERAL BESEBVE BULLETIN. 297 Trade acceptances discounted by each Federal Reserve Bank from Sept. 2, 1915, date of first discount, to Apr. SO, 1916. Federal Reserve Bank. T D o e 1 c 9 t . 1 a 5 l . 3 t 1 o , April, 1916. 4 f i o n T m r o o f 1 t n i 9 a r 1 t l s 6 h t . s Federal Reserve Bank. T D o e 1 c 9 t . a 1 5 l . 3 t 1 o , April, 1916. 4 f i n o T m r o o 1 f t n 9 i a r 1 t l s 6 h t . s New York $5,700 $5,600 St. Louis $167,800 $43,600 $112,900 Philadelphia S3,700 3,700 Kansas City.. 87,800 30,400 80,000 Cleveland 4,900 7,400 57,700 Dallas 160,800 13,600 45,000 Richmond 450,500 97,600 515,600 San Francisco 74,200 5,300 Atlanta (including New Orleans branch) 1,007,100 43,700 395,200 Total... 1,958,800 240,000 1,229,200 Chicago 8,200 Commodity paper, discounted hy each Federal Reserve Bank from Sept. 8,1915, date of first discount, to Apr. SO, 1916. Federal Reserve Bank. T D o ec t . a l 3 t 1 o , April, 1916. 4 f o T m r o o f t n i a r t l s h t s Federal Reserve Bank. T D o ec t . a l 3 t 1 o , April, 1916. 4 f o T m r o o f t n i a r t l s h t s 1915. in 1916. 1915. in 1916. Richmond $2,881,400 $805,700 $3,711,000 Dallas $239,100 $21,300 $215,800 Atlanta (including New Orleans San Francisco. 37 200 43,900 branch) 7,032,300 541,700 2,764,000 St. Louis 99,800 Total 10,315,100 1,370,700 6,748,000 Minneapolis 25,300 2,000 13,300 Commodity paper discounted by each Federal Reserve Bank during the four months ending April, 1916, distributed by classes. Atlanta (including Class. Richmond. O N rl e e w ans M ap i o n l n is e . - Dallas. Sa c n i s F c r o a . n- Total. branch). Cotton $3,668,600 $2,760,100 $208,800 $300 $6,637,800 39,800 900 40,700 Wheat $11,800 11,800 Maize „ 1,000 7,000 8,000 Flax i,6oo 1,600 Hops 19,600 19,600 Hav 400 400 Beans 500 500 2,600 1,000 24,000 27,600 Total 3,711,000 2,763,900 13,400 215,800 43,900 6,748,000 Amounts of commercial paper, exclusive of bankers1 acceptances, held by each Federal Reserve Bank on Apr. 28, 1916f distributed by maturities. Federal Reserve Bank. P w a t i d p u t e a h r r i y i n n s m g . 1 a 0 - t 1 P u w 0 a r d i p d i t n a e a h g y r y i s n s m a . b 3 ft a u 0 e - t r 3 t P u w 0 a r d i d p i t n a a e h g y r y i s n s m a . b 6 f a t u 0 e - t r 6 t P u w 0 a r d i d p i t n a a e h g y r y i s n s m a . b 9 ft a u 0 e - t r t P u 9 a r 0 p in e d g r a y m af s t a . e - r Total. Per cent. Boston $112,900 $179,800 $33,200 $5,400 $331,300 1.6 New York 109 600 116 600 160 300 24 100 410 600 1.9 Philadelphia 317,100 75,600 120,100 60,600 $8,100 581,500 2.7 Cleveland . - 76,900 92,500 71,200 16,100 5,400 262,100 1.2 Richmond 1,429,800 1,662,900 2,153,600 861,100 201,400 6,308,800 29.4 Atlanta - 800,900 979,000 1,138,400 517,800 148,000 3,584,100 16.7 Chicago 286,100 • 303,800 540,400 289,000 324,500 1,743,800 8.1 St Louis 120,900 107,500 165,100 81,700 66,200 541,400 2.5 Minneapolis - .- 138,600 132,200 171,600 91,700 121,700 655,800 3.1 Kansas City 17)9,400 362,600 420,400 284,800 419,800 1,667,000 7.8 Dallas 780,200 873,500 1,301,200 1,028,100 947,900 4,930,900 23.0 San Francisco 41,300 105,400 170,500 50,400 63,100 430,700 2.0 Total 4,393,700 4,991,400 6,446,000 3,310,800 2,306,100 21,448,000 Per cent 20.5 23.3 30.1 15.4 10.7 100.0 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

298 FEDERAL RESERVE BULLETIN. JONE 1, 1916. ACCEPTANCES. Acceptances Mid by Federal Reserve Banks as per schedules on file on dates specified.— Total bankers' acceptances by classes. [In thousands of dollars.] Nonmember banks. Nonmember banks. .Riem- Mem- Date. ba b n e k r s. c T om ru p s a t - b S a t n a k te s. P b r a i n v k a s te . Total. Date. ba b n e k r s. c T om ru p s a t - b S a t n a k te s. P b r a i n v k a s te . Total. nies. nies. 1915. 1916. Feb. 22 93 93 Feb. 7 15,681 7,876 336 1,456 25,349 Apr. 5 3,653 7,820 10 110 11,593 Feb. 14 17,581 7,985 347 1,851 27,764 May3 5,038 8,189 10 110 13,347 Feb. 21 17,661 8,194 392 l',841 28,088 June 7 5,242 4,516 10 192 9,960 Feb. 28 17,436 8,755 408 1,841 28,440 July3 4,342 5,267 161 9.770 Mar. 6 17,182 8,670 408 1,781 28,041 Aug. 2 5,350 5,407 20* 352 11,129 Mar. 13. 20,323 10,032 470 1,631 32,455 Sept.6 6,087 6,305 20 472 12,884 Mar. 20 20,563 11,280 408 2,467 34,718 Oct. 4 '.. 9,000 4,898 132 343 14,373 Mar. 27 21,128 12,864 411 3,078 37,481 Nov.l 8,477 4,331 253 204 13,265 Apr. 3 21,000 13,573 473 3,262 38,308 Dec, 6 12,311 5,172 275 396 18,154 Apr. 10 22,239 14,864 476 3,405 40,984 Apr. 17. 22,135 15,028 564 3,442 41,169 1916. Apr. 24 23,566 15,196 584 3,504 42,850 Jan. 3 15,494 7,160 362 822 23,838 May 1 24,875 15,400 585 3,430 44,290 Jan. 10. 16,492 8,057 370 938 25,857 May 8 25,080 15,728 671 3,493 44,972 Jan.17 16,908 7,655 425 1,010 25,998 May 15. 26,655 15,350 773 4,960 47,738 Jan. 24 16,348 8,070 363 1,441 26,222 26,661 16,468 690 6,038 M9,857 Jan. 31 15,834 8,174 356 1,510 25,874 1 Acceptances indorsed by member banks: Trust companies, $269,000; private banks, 511,989,000; total, $2,258,000. Amounts of acceptances held by the several Federal Reserve Banks at close of business on Fridays, Apr. 28 to May 19, 1916. [In thousands of dollars.] i i Acceptances maturing- Boston. Y N o e r w k. [ d P el h p i n la ia - . C la le n v d e . - m R o ic n h d - . la A n t t - a. c C a h g i o - . Lo S u t. is. M ap i o n l n i e s. - K C a i n t s y a . s Dallas. F c S i r s a a c n n o - . sy T s f o o t t e r a m l . Within 10 days: Apr.28 1,846 1,913 283 119 215 117 78 106 4,760 May 5 1,889 2,019 775 333 489 112 186 474 6,316 May 12 365 1,110 855 255 84 432 137 122 196 169 3,725 May 19 1,404 2?027 1,267 193 93 443 144 171 110 109 5,961 From 11 to 30 days: Apr.28 2,443 2,795 1,937 514 91 294 294 339 10,299 May 5 1,860 2,830 1,951 209 117 663 296 224 210 278 May 12 4,308 3,711 2,533 324 203 746 292 403 318 426 13,264 May 19 3,797 3,675 2,283 506 388 505 238 285 239 453 12,36.9 From 31 to 60 days: Apr.28 ,. 5,230 8,436 2,577 727 480 633 1,081 511 385 373 739 21,152 May 5 5,098 8,436 2,505 802 640 1,005 651 475 381 965 21,438 M M a a y y 1 1 2 9 2 1, , 6 4 9 9 8 3 9 8 , , 2 3 6 9 2 3 2 2 , , 7 33 9 1 8 4 96 8 1 1 3 4 3 3 6 1 1 1, , 2 3 6 4 9 2 8 78 6 1 5 3 3 3 2 7 5 3 39 5 4 2 1 1 , , 2 1 9 7 5 7 1 1 9 9 , , 3 9 4 6 5 4 From 61 days to 3 months: Apr.28'.' 1,385 4,603 2,260 564 28 878 439 342 196 679 11,374 May 5. 1,571 4,407 2,134 657 209 S98 482 221 273 403 11,255 May 12 3,265 3,508 2,385 591 459 592 479 360 294 310 12,243 May 19 4,148 3,846 1,947 810 452 634 770 439 426 1,039 14,511 Total acceptances held: Apr.28 10,904 17,747 7,057 1,924 480 752 3,153 1,327 1,138 2,117 47,585 May 5... 10,418 17,692 7,365 2,001 480 966 3,055 1,468 1,032 1,050 2,120 47,647 May 12 10,431 17,591 8,104 2,159 481 1,177 3,112 1,689 1,210 1,160 2,082 49,196 May 19. 11,047 17,941 8,295 2,508 961 1,269 2.851 2,017 1,232 1,169 2,896 52,186 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

JUNE 1,1916. FEDERAL RESERVE BULLETIN. 299 Amounts of acceptances (in the foreign and domestic trades) bought in open market by each Federal Reserve Bank during the calendar year 1915, and for the four months ending April, 1916. [In thousands of dollars.] Atlanta Acceptances maturing— 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 - . (in N i c n e l g u w d- c C a h go i- . 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 - . s T ys f o o t t e r a m l . Orleans branch). Within 30 days: 497 1,246 695 101 7 156 103 45 69 61 2,980 January 1916 - . . . 48 587 64 20 9 6 734 February 1916 909 277 50 41 1 50 125 1 453 March, 1916 680 741 15 18 l',454 April, 1916 23 1,000 2 4 1,029 Total .. 545 3,445 2,713 215 56 7 176 103 66 78 50 196 7,650 After 30 days, but within 60 days: Calendar year 1915 2,137 2,377 1,464 746 19 816 374 191 183 750 9,057 January, 1916 102 621 43 42 279 43 6 55 13 1,204 February, 1916 41 313 36 30 116 50 33 22 13 654 March 1916 98 520 1 835 70 18 150 146 44. 151 107 3 1S9 April, 1916... 235 765 335 214 480 214 478 137 153 115 277 3,403 Total..., 2,513 4,596 3,713 1,102 480 251 1,839 750 427 526 1,160 17,457 After 60 days, but within 3 months: Calendar Year 1915 11,471 22,211 5,406 2,116 250 46 4,810 1,324 1,219 1,536 2,419 52,808 Januarv 19^ 6 2 681 2 686 151 267 9>00 489 357 200 151 304 7 586 February 1916 3,686 4,157 396 395 65 656 143 194 197 420 io!309 March, 1916 5,913 6,978 2,183 579 421 787 355 365 285 459 18,325 April, 1916 1,497 5,690 2,655 684 234 1,092 602 381 325 907 14,067 Total 25,248 41,722 10,791 4,041 250 1,066 7,834 2,781 2,359 2,494 4,509 103,095 Total acceptances bought: Calendar year 1915 14,105 25,834 7,565 2,963 250 72 5,782 1,801 1,455 1,788 3,230 64,84.5 January, 1916 2; 831 3,894 194i 373 300 768 400 226 215 323 9,524 Februarv 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 April, 1916 1,732 6,478 3,990 898 480 448 1,572 739 534 440 1,188 18' 499 Total 28,406 49,763 17,217 5,358 786 1,324 9,849 3,634 2,852 3,098 50 5,865 128,202 Distribution of bills bought in open market by all the Federal Reserve Banks during the month of April, 1916, by classes of acceptors and sizes. To $5,000. Ove $ r 1 0 $ , 5 0 , 0 0 0 0 . 0 to Ove $ r 2 $ 5 1 ,0 0 0 ,0 0 0 . 0 to Ove $ r 5 $ 0 2 ,0 5 0 ,0 0 0 . 0 to Ove $ r 1 0 $ 0 5 , 0 0 , 0 0 0 0 . 0 to Over $100,000. Total. Acceptances by classes. 3 8 If. s ft I ft 3 ft B < Member banks 155 $504,52.1 129SI,096,454 163^2,843,558 51 $21.,135,869 19 $1.,625,618 7 $2,375,312 524 $10,581,332 57.2 Trust companies 53 138,677 671,970 62 1,380,417 34 1,491,010 814,361 ' 957,538 2~4'~8 5,453,973 29.5 State banks 27 110,625 24,600 24 101,250 54 236,475 1.3 Private banks 13 31,861 161,585 36 641,510 201,477 257,355 84 1,293,788 7.0 Total bankers' acceptances., 248 785,684 242 1,954,809 285 4,966,735 3,828,356 32 2,697,334 11 3,332,850 910!17,565,568 95.0 Trade acceptances.... 21 61,667 39 350,672 28 453,381 67,828 90 2 933,548 5.0 Total bills bought in open market 847,351 281 2,305,281 313 5,420,116 94 3,896,184 32 2,697,334 11 3,332,850 1,00018,499,116 100.0 Percent. 4.6 12.5 29.3 21.0 14.6 18.0 100.0 Total 4 months ending April, 1916 1,0183,125,893 894 7,317,582 1,08219,660,600 29812,124,183 13210,690,804 4810,438,448 3,472 63,357,510 1 Of the above total, bankers' acceptances totaling $16,971,430 were based on imports and exports and $594,138 on domestic trade transactions. 2 Of the above total, trade acceptances totaling $926,147 were drawn abroad on importers in the United States and indorsed by foreign banks, tiile $7,401 represents the amount of domestic trade acceptances bought in the open market during the month. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

800 FEDERAL RESERVE BULLETIN. JUNE 1, 1916. Total investment operations of each Federal Reserve Bank during the month of April, 1916 and 1915. [In thousands of dollars.] Bills Bills bo m u a g r h k t e t. in open Municipal warrants. United States n b o o t n e d s s . and Treasury Tota o l pe i r n a v ti e o s n tm s. ent discounted Bank. b m a b f e n o e m k r r s - . a B a c n e a c c r n e ' e s p k s t - . - a T a c n r c c a e e d p s e t . - Total. City. State. ot A h l e l r. Total. 2 c e p n e t r . c 3 e p n e t r . c 4 e p n e t. r T n u o re r te y a s s . - Total. 1916 1915 Boston 419.8 1,683.2 48.7 1,731.9 32.5 32.5 2,327. 2,327.0 4,511.2 1,511.1 New York 150.0 6,139.4 338.3 6,477.7 5,786.5...50.9 5,837.4 879. 879.5 13,344.6 2,193. 7 Philadelphia 922.7 3,837.2 152.6 3,989.8 92.8 7.2 100.0 284. 1 284.0 5,296.5 968.6 Cleveland 407.4 706.2 192.2 898.4 1,477.9 18.9 1,496.8 596. 25.0 155.0 50.0 2 826.0 3,628. 6 1,182.2 Richmond.. 3,331.0 480.5 480.5 50.4 50.4 75. 75.0 3,936.9 3,166.2 Atlanta 1,553.6 440.7 "'7*4 448.1 6.1 6.1 694. 3 694.9 2,702.7 1,857.2 Chicago 1,808.5 1,515.9 56.1 1,572.0 905.0 146.4 24.5 1,075.91/., 740. 1, 740. 7 ,6,197.1 991.0 St. Louis 240.6 738.7 738.7 40.5 40.5 1,019.8 557.7 Minneapolis 121.9 534.3 534.3 263.5 263.5 331. 28.5 75.0 434.5 1,354.2 554.4 Kansas City 564.1 439.7 439.7 36.5 36.5 513. 710.0 1,223.0 2,263.3 785.4 Dallas 1,876.2 1,513. 1,513.75 3,389.95 2,651.9 San Francisco 125." i,"049."8 138.2 I~iss."6"42L4 481. 481.25 2,216.25 1,419.5 Total: April, 1916... 11,521.417,',565.6 933.5 18,499.1 9,113.1 197.3 50. ( 9,361.0 9,436.1 53.5 940.0 50.010,479.6 49,861.1 April, 1915... 10,549.3 4,018.0 4,018.0 3,196.6 7755.00 75.0 17,838.9 4 months ending Apr. 30, 1916 39,651.'7 61.,228.4 2,129.163,357.5 39,422.2 462.1 133.0 40,018.1 28,013.0 2,962.38 3,828.0 50.0 34,853.38177,880.28 4 months ending Apr. 30, 1915 47,192.:115i., 040.0 15,040.0 19,606.0 5,561.75 1,070.0 6,631.75 88,469.85 1 Sold 500j000 3 per cent conversion bonds of 1946. 2 Sold 200,000 3 per cent conversion bonds of 1946, also 250,000 3 per cent Treasury conversion notes. 3 Sold 61,500 2 per cent bonds of 1930. Conversion of 2 per cent United States bonds into 30-year 3 per cent conversion bonds and 1-year 3 per cent Treasury notes. United States 2 per United States 2 per cent bonds con- cent bonds converted into— verted into— Total Total. Bank. conver- Bank. conver- 30-year 1-year sions. 30-year 1-year sions. conver- Treas- conver- Treassion ury sion ury bonds. . notes. bonds. notes. Boston $250,000 $250,000 $500,000 St Louis $381,700 $380,000 S761,700 New York... .. 1,533,300 1,532,000 3,065,300 Minneapolis. 349,300 350,000 699,300 Philadelphia 962,600 462,000 3,424,600 Kansas City 410,600 410,000 820,600 Cleveland 200,000 200,000 400,000 Dallas Richmond 457,800 456,000 913,800 San Francisco Atlanta (including New Orleans branch) 355,300 350,000 705,300 Chicago... . 1,000,000 1,000,000 Total 5,900,600 4,390,000 10,290,600 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

, 1916. FEDERAL BESERVE BULLETIN. 301 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, Apr. 28 to May 26, 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. Minne- K C a i n t s y a . s Dallas. F S r a a n n- T f o o t r al cisco. system. Gold coin and certificates in vault: Apr.28 6,123 140,410 9,416 11,807 4,865 6,081 33,545 4,686 3,632 4,307 3,836 5,596 234,304 May 5 5,600 138,830 8,001 11,845 4,872 6,140 35,047 4,881 3,793 4,187 3,819 5,269 232,284 May 12 5,509 144,036 7,036 11,970 4,888 6,203 35,089 5,587 4,538 4,093 3,821 5,715 238,485 May 19 6,670 145,142 9,718 12,247 5,054 6,1.59 34,959 6,076 6,080 4,208 3,883 6,616 246,812 May 26 7,042 142,261 6,709 12,180 5,155 37,658 5,876 6,142 4,234 3,859 5,386 242,985 Gold settlement fund: Apr.28 9,774 5,652 7,716 8,721 3,079 7,064 5,075 4,612 4,336 8,610 1,093 75,421 May 5. 10,218 8,602 6,386 6,534 9,933 2,929 3,371 4,822 4,750 3,694 8,618 2,764 72,621 May 12 9,939 8,073 7,670 5,517 10,182 2,875 3,218 4,285 4,649 4,341 9,191 1,971 71,911 May 19 11,958 4,093 10,974 7,847 11,453 3,475 3,923 2,981 4,692 4,753 8,421 3,401 77,971 May 26 10,381 2,045 14,881 11,217 13,072 4,714 3,877 4,419 4,711 7,538 6,103 91,991 Gold redemption fund: Apr.28 250 50 23 234 337 200 11 30 71 236 10 1,457 May5 250 50 57 321 389 200 99 30 71 210 10 1,692 May 12 250 50 42 425 418 200 79 30 69 200 10 1,778 May 19..... 250 50 26 446 488 200 67 30 64 189 10 1,825 May 26 561 50 70 464 478 200 51 30 60 184 10 2,163 Legal-tender notes, silver, etc.: Apr.28 56 4,509 959 126 211 1,921 870 517 151 811 12,011 May 5 188 2,463 927 1,033 132 243 2,974 853 555 135 737 10,259 May 12 282 1,632 776 991 130 292 1,309 997 596 141 732 7,927 May 19 266 9,679 857 1,085 175 375 2,578 982 660 172 858 17,697 May 26 14,441 736 1,061 184 343 2,127 995 673 186 884 21,972 Total reserve: Apr.28 15,958 154,858 16,980 20,505 13,946 9,708 42,730 10,642 8,791 8,865 13,493 6,717 323,193 May 5 16,011 150,145 15,364 19,469 15,258 9,701 41,592 10,655 9,128 8,087 13,384 8,062 316,856 May 12 15,735 153,991 15,532 18,520 15,625 9,788 39,816 10,948 9,813 8,644 13,944 7*,745 320,101 May 19 18,899 159,164 21,599 21,205 17,128 10,497 41,660 10,106 11,462 9,197 13,351 10,037 344,305 May 26 17,762 159,308 22,376 24,528 18,875 12,018 43,862 11,341 11,556 12,018 13,960 11,507 359, 111 Bills discounted—Members: Apr.28 331 411 581 262 6,309 3,584 1,744 541 656 1,667 4,931 431 21,448 May5 306 393 601 300 5,783 3,371 1,679 495 591 1,749 4,577 455 20,300 May 12 209 325 920 264 5,522 3,160 1,717 532 596 1,719 4,606 437 20,007 May 19 164 337 728 304 5,267 3,054 1,799 549 653 1,751 4,774 429 19,809 May 26 136 324 812 301 5,344 3,028 1,809 905 658 1,806 4,837 405 20,365 Bills bought in open market: Apr.28 10,904 17,747 7,057 1,924 752 3,153 1,327 1,138 2,117 47,585 May 5 10,418 17,692 7,365 2,001 966 3,055 1,468 1,032 1,050 2,120 47,647 May 12 10,431 17,591 8,104 2,159 481 1,177 3,112 1,689 1,210 1,160 2,082 49,196 May 19 11,047 17,941 8,295 2,508 961 1,269 2,851 2,017 1,232 1,169 2,896 52,186 M26 10,334 17,595 8,736 2,791 1,239 3,059 2,139 1,360 1,278 3,371 52,708 One-year Treasury notes: Apr.28 250 1,532 462 456 380 350 410 3,840 May 5 250 1,532 462 456 380 350 410 3,840 May 12 250 1,532 462 456 380 350 410 3,840 May 19 250 1,532 462 456 380 350 410 3,840 May26 250 1,532 462 456 380 350 410 3,840 United States bonds: Apr.28 3,077 2,550 3,538 4,600 1,295 2,033 8,423 2,959 2,273 8,736 2,841 3,516 45,841 May 5 3,082 3,477 3,538 5,800 1,295 2,033 9,753 2,959 2,699 9,070 2,866 3,565 50,137 May 12 3,082 3,477 3,538 6,206 1,525 2,033 9,753 2,959 2,934 9,305 2,866 3,590 51,268 May 19 3,082 3,489 3,538 6,346 1,525 2,034 9,753 2,959 3,344 9,311 2,866 3,590 51,837 May26 3,489 3,538 6,352 1,605 2,034 9,753 2,959 3,344 9,311 2,866 3,609 51,942 Municipal warrants: Apr; 28 2,466 15,493 3,319 4,977 4,528 1,237 1,619 1,010 2,218 36,933 May5 2,394 16,126 3,762 5,210 4,913 1,429 1,791 1,081 2,388 39,154 May. 12 2,794 16,313 3,782 5,252 5,216 1,469 1,825 1,105 2,469 40,285 May 19 4,145 17,074 4,068 5,684 5,796 1,749 2,078 2,520 44,482 May26 4,244 17,100 4,079 5,677 5,801 1,749 2,078 2,850 44,946 Federal Reserve notes, net assets: Apr.28 934 9,630 153 426 1,186 1,635 1,001 1,429 5,210 21,604 May 5 947 14,338 257 481 1,264 1,658 1,061 1,427 4,876 26,309 May 12 982 14,056 177 1,213 1,587 1,132 1,570 4,818 §,053 May 19 1,014 14,434 257 472 1,293 1,607 920 1,637 •4,838 26,472 May26 1,054 13,986 138 530 1,402 1,615 1,049 1,803 4,856 Due from other Federal Reserve Banks, net: Apr.28 1,877 191 835 2,892 1,484 2,706 2,297 1,410 3,555 * 14,658 May 5 2,599 468 1,895 288 4,265 2,044 1,503 2,213 2,563 117,328 May 12 -. 937 2,362 1,514 1,456 439 5,442 1,893 1,234 1,472 3,487 115,752 May 19 2,320 1,934 4,021 2,629 1,761 6,733 2,834 966 3,295 1,169 3,565 i 19,448 May 26 4,660 4,062 1,359 1,602 240 7,616 1,179 751 1,477 230 2,131 U6,512 i 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

302 FEDERAL RESERVE BULLETIN. JUNE 1,1916. Resources and KabUii each of the Federal Reserve Banks and of the Federal Reserve System at close of on Fridays, Apr. 28 to May 26, 1916—Continued. RE S O URGE S—Continued. [In thousands of dollars.] Boston. Y N o e r w k. d P e h lp il h a i - a. C la l n ev d e . - m R o ic n h d - . la A n t t - a. Chicago. Lo S u t. is. M ap i o n l n is e . - K C a i n t s y o . s Dallas. F c S i r s a a c n n o - . sy T s f o o t t e r a m l . All other resources: Apr. 28 ,. 62 299 103 324 78 843 551 294 136 694 873 276 4,533 May 5 121 323 69 301 103 646 487 338 131 527 913 164 4,123 May 12 20 311 60 322 161 711 488 617 131 522 1,164 184 4,691 May 19 195 323 77 314 240 798 708 863 144 870 1,338 122 5,992 May 26 161 3,581 211 490 175 545 471 127 994 1,663 93 9,493 Total resources: Apr. 28 35,859 202,520 32,384 33.853 25,516 18,346 64,248 21,087 18,689 23,778 22 138 24,040 519,635- May 5 34,157 204,026 34,017 34,030 25,330 18,269 67,402 20,829 18,652 24,187 21 740 24,193 525,694 May 12 -. 34,440 207,596 34,937 34,755 25,286 18,521 67,131 21,619 19,663 24,337 22,580 24,812 531,193 May 19 41,116 214,294 40,958 40.854 28,266 20,706 70,907 22,377 21,866 27,311 23 498 27,997 568,371 May26 •--.. 41,683 216,915 44,414 42,028 28,923 20,943 74,080 22,172 22,027 28,602 23,556 28,822 585,350 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 is e . - K C a i n ty s . as Dallas. F S r a a n n- T f o o t r al cisco. system. Capital paid in: Apr.28 4,950 11,299 5,216 5,948 3,346 2,408 6,670 2,788 •2,571 3,002 3,926 54,793 May 5. 4,950 11,299 5,216 5,948 3,344 2,469 6,672 2,788 2,573 3,002 2,675 3,926 54,862 May 12 4,952 11,282 5,214 5,944 3,344 2,470 6,673 2,787 2,574 3,001 2,683 3,926 54,850 May 19 4,943 11,283 5,216 5,965 3,348 2,469 0,673 2,792 2,574 3,006 2,675 3,926 54,870 May 26 4,943 11,283 5,216 5,966 3,350 2,469 6,672 2,794 2,574 3,003 2,675 3,930 54,875 Government deposits: Apr.28 2,072 8,186 2,815 733 6,424 7,054 1,493 2,630 434 1,286 5,769 1,764 40,660 May5 1,863 8,198 1,959 779 6,179 6,767 1,334 3,482 573 1,429 5,934 1 917 40,414 May 12... 1,734 6,413 1,795 854 5,991 6,933 883 4,022 634 1,154 6,056 1,684 38,153 May 19 1,727 6,608 2,310 1,006 6,440 7,152 2,746 3,351 692 758 6,161 1,524 40,475 1,826 8,753 3,082 1,190 6,358 7,490 2,923 2,778 678 6,236 1,952 44,131 Reserve deposits, net: Apr.28 28,823 180,448 24,353 27,172 11,545 8,773 56,085 15,669 15,684 16,733 9,857 17,869 413,011 May5 27,324 183,605 26,842 27,303 11,435 8,919 59,396 14.559 15.506 17,191 9,543 18,320 419,943 May 12 27.720 186,008 27,928 27,957 11,652 9,002 59,575 H, 810 10,455 17,544 9,987 19,172 427,810 May 19 34,394 184,624 33,432 33,883 14,187 10,969 61,488 16,234 18,600 20,958 11,736 22,517 463,022 May26. 34,861 188,084 36,116 34,872 15,052 10,866 64,485 16,600 18,795 22,257 11,792 22,940 476,680 Federal Reserve notes, net liability: Apr.28 4,156 3,607 8,851 May5 4,328 871 3,374 8,573 May 12 4,252 887 3,263 8,402 May 19 4,239 853 2,926 8,018 May 26 4,108 745 2,853 7,705 Federal Reserve bank notes in circulation: ' Apr.28 1,669 May 5 694 1,694 May 12 1,775511 1,751 May 19 1,736 1,736 May26 1,732 1,732 Due to other Federal Reserve Banks, net: Apr.28 2,587 236 May 5 924 214 May 12 3,893 591 May 19 11,779 May26 8,795 All other liabilities: Apr.28 14 45 111 481 651 May 5 20 44 114 30 208 May 12 34 47 116 30 227 May 19 52 52 116 30 250 May26 53 55 118 Total liabilities: Apr.28 35,859 202,520 32,384 33,853 25,516 18,346 64,248 21,087 18,689 23,778 22,138 24,040 519,635 .May 5.... 34,157 204,026 34,017 34,030 25,330 18,269 67,402 20,829 18,652 24,187 21,740 24,193 525,694 May 12 34,440 207,596 34,937 34,755 25,286 18,521 67,131 21,619 19,663 24,337 22,580 24,812 531,193 May 19 41,116 214,294 40,958 40,854 28,266 20,706 70,907 22,377 21,866 27,311 23,498 27,997 568,371 May 26 41,683 216,915 44,414 42,028 20,943 74,060 22,172 22,027 28,602 23,556 28,822 585,350 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

JUNE .1,1916. FEDERAL BESERVE BULLETIN. 303 Circulation of Federal Reserve notes at close of business on Fridays, Apr. 28 to May 26, 1916. [In thousands of dollars.] Boston. Y N o e r w k. d P el h p i h la i - a. C la le n v d e . - m R o ic n h d - . la A n t t - a. Chicago. Lo S u t. is. M ap i o n l n is e . - K C a i n t s y a . 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 . Federal Reserve notes issued to the bank: Apr.28 10,788 70.791 6,806 10,542 10,828 14,678 3,796 7,312 13,105 9,462 15,705 11,611 185,424 May 5 10,740 73,307 6,778 10,513 10,690 14,634 3,791 7,304 13,095 9,405 15,593 11,602 187,452 May 12 10,683 72,942 6,606 10,484 10,620 14,561 3,784 7,270 13,083 9,432 15,713 11,988 187,166 May 19 10,614 72,645 6,566 10,455 10,526 14,.472 3,678 7,252 13,069 9,392 15,413 11,918 186,000 May26 10,558 74,742 10,428 10,350 14,432 3,673 6,956 13,137 9,368 15,209 11,910 187,248 Federal Reserve notes in hands of banks: Apr.28 934 9,630 153 426 464 1,186 1,635 1,001 1,429 142 120 5,210 22,330 May 5 947 14,338 257 481 292 1,264 1,658 1,061 1,427 229 316 4,876 27,146 May 12. 982 14,056 177 518 1,213 1,587 1,132 1,570 599 4,818 27,218 May 19 1,014 14,434 257 472 381 1,293 1,607 920 1,637 232 676 4,838 27,761 May26.. 1,054 13,986 138 530 512 1,402 1,615 1,049 1,803 340 574 4,856 27,859 Federal Reserve notes in circulation: Apr.28 9,854 61,161 6,653 10,116 10,364 13,492 2,161 6,311 11,676 9,320 15,585 6,401 163,094 May 5 9,793 58,969 6,521 10,032 10,398 13,370 2,133 6,243 11,668 9,176 15,277 6,726 160,306 May 12 9,701 6,429 10,252 13,348 2,197 6,138 11,513 9,234 15,114 7,170 159,948 May 19. 9,600 58,211 6,309 10,145 13;179 2,071 6,332 11,432 9,160 14,737 7,080 158,239 May26 9,504 60,756 6,347 9,838 13,030 2,058 5,907 11,334 9,028 14,635 7,054 159,389 Gold and lawful money deposited with or to the credit of the Federal Reserve Agent: Apr.28 10,788 70,791 10,542 14,678 . 3,796 7,312 13,105 !,232 11,978 11,611 175,847 May 5 10,740 73,307 6,778 10,513 6,070 14,634 3,791 7,304 13,095 !,305 11,903 11,602 178,042 May 12 10,683 72,942 6,606 10,484 6,000 14,561 3,784 7,270 13,083 !,347 11,851 11,988 177,599 May 19 10,614 72,645 10,455 5,906 14,472 3,678 7,252 13,069 !,307 11,811 11,918 176,693 May26 „ 10,558 74,742 10,428 5,730 14,432 3,673 6,956 13,137 5,028 11,782 11,910 178,116 Carried to net assets: Apr.28 934 9,630 153 426 1,186 1,635 1,001 1,429 5,210 21,604 May 5 947 14,338 257 481 1,264 1,658 1,061 1,427 4,876 26,309 May 12 982 14,056 177 518 1,213 1,587 1,132 1,570 4,818 26,053 May 19 1,014 14,434 257 472 1,293 1,607 920 1,637 4,838 26,472 May 26 1,054 13,986 138 530 1,402 1,615 1,049 1,803 4,856 26,433 Carried to net liabilities: Apr.28 4,156 3,607 8,851 May 5 4,328 871 3,374 8,573 May 12 4,252 887 3,263 8,402 May 19 4,239 853 2,926 8,018 May26 4,108 745 2,853 7,706 Statement of Federal Reserve Agents' accounts at close of business on Fridays, Apr. 28 to May 26,1916. [In thousands of dollars.] Boston. Y N o e r w k. d P el h p i h la i - a. C la le n v d e . - m R o ic n h d - . la A n t t - a. Chicago. Lo S u t. is. M ap i o n l n i e s. - K C a i n t s y a . s Dallas. F c S i r s a a c n n o - . sy T s f o o te t r a m l . Federal Reserve notes: Received from Comptroller- Apr. 28 20,380 114,240 15,480 13,360 17,000 20,400 9,380 9,600 19,000 13,000 22,140 12,160 286,140 May 5 20,380 114,240 15,480 13,360 17,000 20,400 9,380 9,600 19,000' 13,000 23,580 12,160 287,580 May 12 20.380 116,240 15,480 13,360 17,000 20,400 9,380 9,600 19,000 13,000 23,580 12,560 289,980 May 19 20,380 116,240 15,480 13,360 17,000 20,400 9,380 9,600 19,000 13,000 23,580 12,560 289,980 May 26 20,380 116,240 15,480 13,360 17,000 20,400 9,380 9,600 19,000 13,000 23,580 12,560 289,980 Returned to Comptroller— Apr.28... 2,112 25,449 2,581 1,118 2,772 1,626 703 526 185 545 1,341 549 39,507 May 5 2,160 25,733 2,609 1,147 2,910 1,670 708 534 195 602 1,560 558 40,386 May 12 2,217 26,098 2,781 1,176 2,980 1,743 715 568 207 650 1,613 572 41,320 May 19 2,286 26,395 2,821 1,205 3,074 1,832 821 586 221 690 1,653 642 42,226 May 26 2,642 26,698 2,902 1,232 3,250 1,872 882 233 714 1,682 650 43,583 Chargeable to Federal Reserve Agent- Apr. 28 18,268 88,791 12,899 12,242 14,228 18,774 8,677 9,074 18,815 12,455 20,799 11,611 246,633 May 5 18,220 88,507 12,871 12,213 14,090 18,730 8,672 9,066 18,805 12,398 22,020 11,602 247,194 May 12 18,163 90,142 12,699 12,184 14,020 18,657 8,665 9,032 18,793 12,350 21,967 11,988 May 19 18,094 89,845 12,659 12,155 13,926 18,568 8,559 9,014 18,779 12,310 21,927 11,918 247,754 May26 17,738 89,542 12,578 12,128 13,750 18,528 8,554 8,718 18,767 12,286 21,898 11,910 246,397 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

304 FEDERAL RESERVE BULLETIN. JUNE 1,1916. Statement of Federal Reserve Agents' accounts at close of business on Fridays, Apr. 28 to May 26, 1916—Continued. [In thousands of dollars.) San Total Boston. Y N o e r w k. d P el h p i h la ia - . C la l n ev d e . - m R o ic n h d - . la A n t t - a. Chicago. Lo S u t. is. M ap i o n l n i e s. - K C a i n ty sa . s Dallas. F ci r s a c n o - . sys fo te r m. Federal Reserve notes- Continued. In hands of Federal Reserve Agent— Apr.28 7,480 18,000 6,093 1,700 3,400 4,096 4,881 1,762 5,710 2,993 5,094 61,209 May 5... 7,480 15,200 6,093 1,700 3,400 4,096 4,881 1,762 5,710 2,993 6,427 59,742 May 12 7,480 17,200 6,093 1,700 3,400 4,096 4,881 1,762 5,710 2,918 6,254 61,494 May 19 7,480 17,200 6,093 1,700 3,400 4,096 4,881 1,762 5,710 2,918 6,514 61,754 May26 7,180 14,800 1,700 3,400 4,096 4,881 1,762 5,630 2,918 6,689 59,149 Issued to Federal Reserve bank, net- Apr. 28.... 10,788 70,791 10,542 10,828 14,678 3,796 7,312 13,105 9,462 15,705 11,611 185,424 May. 5 10,740 73,307 6,778 10,513 10,690 14,634 3,791 7,304 13,095 9,405 15,593 11,602 187,452 May 12 10,683 72,942 6,606 10,484 10,620 14,561 3,784 7,270 13,083 9,432 15,713 11,988 187,166 May 19 10,614 72,645 6,566 10,455 10,526 14,472 3,678 7,252 13,069 9,392 15,413 11,918 186,000 May26 10,558 74,742 6,485 10,428 10,350 14,432 3,673 6,956 13,137 15,209 11,910 187,248 Amounts held by Federal Reserve Agent: In reduction of liability on outstanding notes- Gold coin and certificates on hand- Apr. 28 10,200 67,917 3,360 9,700 2,850 10,140 3,780 9,540 117,487 May 5 10,200 70,717 9,700 2,850 10,040 3,910 9,540 120,317 May 12 9,700 70,717 3,360 9,700 2,850 10,040 4,000 9,540 119,907 May 19 9,700 70,717 3,360 9,700 2,850 10,040 4,000 9,540 119,907 May26 9,700 73,117 3,360 9,700 2,850 10,120 4,000 9,540 122,387 Credit balances in gold redemption bond— Apr.28 2,874 842 408 1,228 332 615 552 241 9,210 May 5 540 2,590 508 813 340 1,184 381 424 705 495 783 232 May 12 2,225 476 784 370 1,111 374 693 447 731 218 May 19 914 1,928 436 755 276 1,022 372 679 407 791 358 May26 858 1,625 355 728 530 363 356 667 583 762 350 8,152 Credit balances with Federal R e s e r ve Board- Apr. 28 3,110 5,800 13,450 3,410 4,130 2,350 3,900 1,630 11,370 49,150 May 5 2,910 5,730 13,450 3,410 §4,030 2,350 3,900 1,580 11,370 48,730 May 12....... 2,770 5,630 13,450 3,410 4,030 2,350 3,900 1,580 11,770 48,890 May 19 2,770 5,630 13,450 3,310 4,030 2,350 3,900 1,480 11,560 48,480 May26 2,770 5,200 13,450 3,310 3,750 2,350 3,700 1,480 11,560 47,570 As security for outstanding notes- Commercial paper— Apr.28 4,620 1,230 3,727 9,577 May 5 4,620 1,100 3,690 9,410 May 12 4,620 1,085 3,862 9,567 May 19 4,620 1,085 3,602 9,307 May26 4,620 1,085 3,427 9,132 Total- Apr. 28 10,788 70,791 10,542 10,828 14,678 3,796 7,312 13,105 9,462 15,705 11,611 185,424 May 5........ 10,740 73,307 6,778 10,513 10,690 14,634 3,791 7,304 13,095 9,405 15,593 11,602 187,452 May 12 10,683 72,942 6,606 10,484 10,620 14,561 3,784 7,270 13,083 9,432 15,713 11,988 187,166 May 19....... 10,614 72,645 6,566 10,455 10,5,26 14,472 3,678 7,252 13,069 9,392 15,413 11,918 186,000 May26 10,558* 74,742 6,485 10,428 10,350 £14,432 3,673 6,956 13,137 9,368 15,209 11,910 187,248 Memorandum: Total amount of commercial paper delivered to Federal Reserve Agent- Apr. 28 4,885 1,235 4,122 10,242 May 5 4,626 1,104 4,248 9,978 May 12 4,927 1,097 4,188 10,212 May 19 5,287 1,097 4,336 10,720 May26 ,934 1,085 4,189 10,208 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

JUNE 1,1916. FEDERAL RESERVE BULLETIN. 305 GOLD IMPORTS AND EXPORTS. Imports of gold, by customs districts, Jan. 1 to May 19, 1916. [In thousands of dollars.] r 1 •aw i 3 Week ending Apr. 28. Ore and base bullion. 14 18 2 25 175 52 380 Bullion, refined 122 249 75 447 Foreign coin 196 197 Total 14 18 251 25 250 52 1,024 Week ending May 5. Ore and base bullion — 43 37 38 43 41 25 245 United States mint or assay office bars 12 12 Bullion, refined 242 283 United States coin 5 Foreign coin "195 195 Total 480- 80 53 25 740 Week ending May 12. Ore and base bullion 18 82 78 332 United States mint or assay office bars. 203 Bullion, refined 171 58 .1,821 2,051 United States coin .1,750 1,750 Foreign coin 195 509 704 Total 462 82 78 261 38 4,080 5,040 Week ending May 19. Ore and base bullion. 17 112 52 52 313 Bullion, refined 404 70 .6,676 7,152 United States coin 1 1 Foreign coin 146 *24" 170 Total 568 11 112 122 52 6,700 7,636 January 1 to May 19. Ore and base bullion 961 132 266 66 96 655 1,156 557 116 738 4,747 United States mint or assay office Bu b l a l r i s o n, refined a 6,288 27 2,674 375 . 1, 7 3 6 3 6 0 . 8,497 1 1 8 , , 3 7 3 1 0 5 United States coin 33 55 .1,777 1,970 Foreign coin 20,937 4,867 544 26,358 Total. 28,285 33 146 348 8,196 1,586 2,653 116 738 10,818 53,120 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

306 FEDERAL RESERVE BULLETIN. JUNE 1^1916. Exports of gold, by customs districts, Jan. 1 to May 19, 1916. [In thousands of dollars.] Week ending Apr. 28. Ore and base bullion United States mint or assay office bars Bullion, refined, domestic .. . United States coin.. Foreign coin Total Week ending May 5. Ore and base bullion Bullion refired domestic United States coin Foreign coin. . Total Week ending May 12. Bullion refined domestic United States coin Foreipn coin Total Week ending May 19. United States mint or assay office bars... Bullion refined domestic United States coin. Foreipn coin Total Jan. 1 to May 19. Ore and base bullion...... United States mint or assay office bars Bullion, refined: Domestic Foreign . United States coin. Foreign coin Total dna eniaM -pmaH weN .erihs 2 2 .kroY weN 624 1,000 1,624 1,079 1,078 2,157 638 577 695 1,910 100 896 996 758 3,339 1/438 10,305 15,630 31,470 .ociR otroP 15 15 .aksalA 11 11 .iiawaH 9 9 83 83 .ocsicnarF naS 993 3,675 5 4,673 2 2 3,044 701 10,722 5 14,472 .notgnihsaW 8 8 2 2 1 1 70 1 10 81 .olaffuB 5 5 2 21 10 2 35 16 16 1 17 18 64 69 156 19 3 311 .atokaD 10 10 1 12 13 .nagihciM 12 3 15 dna anatnoM .ohadI 1 1 .ecnerwaL .tS 5 5 1 3 4 2 2 1 2 3 507 19 1,016 1,384 2,926 .tnomreV 7 750 757 .latoT 8 993 10 4,308 1,005 6,324 2 22 1,101 1,083 2,208 654 581 695 1,930 2 17 103 896 1,018 147 4,378 4,236 1,438 22,933 17,025 50,157 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

JUNB 1,1916. FEDERAL RESERVE BULLETIN. 307 EARNINGS ON INVESTMENTS OF FEDERAL RESERVE BANKS. Average amounts of earning assets held by each Federal Reserve Bank during April, 1916, earnings from each class of earning assets, and annual rates of earnings on the basis of April, 1916, returns. Average balances for the month of the several classes of earning assets. Bills redis- Bills bought United eounted, in open Municipal States Total. members. market. warrants. bonds. Boston $295,129 $11,421,238 $2,523,609 $3,218,267 $17,458,243 New York 499,967 16,530,707 15,095,063 3,971,550 36,007,287 Philadelphia.. 484,626 5,972,125 3,318,705 4,175,070 13,950,526 Cleveland 436,402 1,688,989 4,869,198 4,180,767 11,175,356 Richmond 6,227,049 54,048 61,913 1,731,000 8,074,010 Atlanta: 3,726,791 783,749 3,645 1,993,333 6,447,518 Chicago 1,981,379 2,594,358 3,910,882 8,153,150 16,639,749 St. Louis 573,899 1,175,436 1,250,921 3,339,000 6,339,256 Minneapolis... 773,000 998,300 1,433, 700 2,396,800 5,601,800 Kansas City... 1,848,310 934,421 1,004,196 8,547,400 12.334,327 Dallas 4,724,098 2,533,333 7; 257,431 San Francisco. 475,000 1,997,000 2,231,000 3,317,000 8,020,000 Total..., 21,955,650 44.150,371 35,702,812 47,496,670 149,305,503 Earnings from— Calculated annual rate of earnings from— B m c i o l e l u m s n r b t e e e d d r i s , s . - o b p o e u B k n g e i l h m t l . s t a i r n - M wa u r n r i a c n ip ts a . l U b S o n ta n i t t d e e s s d . Total. m c B o e i m u d ll i n s s b t - e e r r e d s - , . m i b n B o a o u r il k p g l e e s h n t t . p M r a a l u n n w t i s c a . i r - - U b S o n t n a i t t d e e s s d . v A e o ti s p l o t l e m n r i s a n e . - - nt Per cent. Per cent. Percent. Per cent.' Per cent. .Boston $4,536.88 $5,725.83 $29,998.37 3.58 2.02 2.19 2.17 2.10 New York 1,346.00 27, 728.04 28,433. 99 9,283.10 66,791.13 4.00 2.05 2.30 2.85 2.25 Philadelphia.. 1,487.05 9,961.38 6,351. 73 7,818. 79 25,618. 95 3.74 2.03 2.33 2.28 2.24 Cleveland. 1,469.85 2,705.14 10,189. 51 8,933.74 23,298.24 4.11 1.95 2.55 2.67 2.54 Richmond 20,044.27 175.16 159. 44 3,605.96 23,984,83 3.93 3.95 3.14 2.54 3.62 Atlanta 10,835.21 1,675.71 12.11 3,163.21 15,686.24 3.55 2.59 4.05 2.00 2.97 Chicago 7,489.41 4,297.02 7,379.89 16,449.23 35,615.55 4.61 2.02 2.30 2.46 2.61 St. Louis 2,070.76 1,973.16 2,245.56 6,109. 72 12,399.20 4.40 2.05 2.19 2.23 2.39 Minneapolis... 3,076. 87 1,644.36 2,730.48 4, 798. 38 12,250.09 4.86 2.01 2.32 2.44 2.67 Kansas City... 7', 247.96 1,557.26 1,791.81 14,987.99 25,585.02 4.78 2.03 2.18 2.14 2.53 Dallas 17,134. 74 4,686.05 21,820. 79 4.44 2.22 3.67 San Francisco. 1,947.30 3,286.46 4,094.13 5,410.52 14,738.41 5.00 2.00 2.24 1.99 2.24 Total.... 75,015.85 73,872.92 67,925.53 90,972.52 307,786.82 4.17 2.04 2.32 2.34 2.50 NOTE.—With the view of insuring uniform treatment of the items reported by all banks, the average yearly rates were obtained through multiplying all the calculated average monthly rates by the fraction 366/30. It is thought that on the whole the results thus obtained provide a satisfactory basis for comparison between the individual banks. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

308 FEDERAL RESERVE BULLETIN. JUNE 1, 1916. DISCOUNT RATES. Discount rates of each Federal Reserve Bank in effect May 25, 1916. Trade acceptances. M o a f n a 1 d tu 0 l r e d it s a i s e y . s s t M i o o n f a c 3 o t l 0 u u v r d s e i i r a t v i y 1 e e s 0 s . , t M i o o n f a c 6 o t l 0 u u v d r s e i i a r t v i y 3 e e s 0 . s , t M i o o n f a c 9 o t l 0 u u v r s d e i i a r t v i y 6 e e s 0 . s , p l t i a 9 A u v p 0 r e g e a - d r r l s i a c t a o o y u n v c s l d - . e k r T in o c 6 l 0 u s d i a v y e s . , O i 9 n v 0 c e l d r u a s 6 i y 0 v s e , to . m p C a o o p d m e i r t - 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 3 13 Cleveland 3 Richmond Atlanta 31 2 31-51 Atlanta (New Orleans branch). 3 3£-4 Chicago St. Louis 43 Minneapolis 31 Kansas City ; 31 Dallas 3-5 San Francisco 8* 1 Rate for commodity paper maturing within 90 days. 2 Rate for bills of exchange in open market operations. 3 Rate for trade acceptances bought in open market without member bank indorsement. 4 A rate of 2 to 4 per cent for bills with or without member bank indorsement has been authorized. 5 Rate for commodity paper maturing within 30 days, 31 per cent; over 30 to 60 days, 4 per cent; over 60 to 90 days, 4J per cent; over 90 days, 5 per cent. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

INDEX. Page. Page. Acceptances, distribution of, by sizes, maturities, Informal rulings of the Board—Continued. etc 298-300 Real estate loans 273 Business conditions throughout the 12 Federal Federal Reserve Bank notes 273 Reserve districts 275-292 Intradistrict clearing system, additions to and Clearing and collection plan, inauguration of, withdrawals from 267 deferred 262-264 Law department: Commercial failures in 1916 267 Limit on rediscounts of commercial or business Commercial paper discounted. 294-296 paper 274 Discounts, distribution of 293-297 Member banks granted authority to accept up to 100 Discount rates in effect 308 per cent 265 Earnings on investments of Federal Reserve Banks. 307 National banks, net increases in capitalization.. 265,266 Federal Reserve Bank statements 301-304 Rediscounts by depositaries of Indian funds 266 Fiduciary powers granted ^. 266 Resources and liabilities of Federal Reserve Banks. 301,302 Gold imports and exports 305, 306 United States bonds: Gold settlement fund 268-270 Conversion of 300 Informal rulings of the Board: Sale of, through Treasurer of United States.. 264,265 Loans and discounts * 272 Wisconsin banks, petition of, for transfer to Chicago Loans on farm lands 272 district, denied 264 Tax on Federal Reserve notes 273 Work of the Board 261 O Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis