Federal Reserve Bulletin, 1916-07

FEDERAL RESERVE BULLETIN ISSUED BY TEE FEDERAL RESERVE BOARD AT WASHINGTON JULY, 1916 ¥/ASHINGTON 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 , 309 Meaning of '' par'' collection 310 Deposit of gold bullion 311 Clearing circulars issued by Federal Reserve Banks 312 Leave of absence granted to Gov. Strong. 315 Cost of gold settlement fund 315 New national-bank charters 316 Conversion of United States bonds 316 Clearing house taken over by Boston bank 317 Assessment levied for expenses of Federal Reserve Board 318 Discount rates in effect • 319 Gold settlement fund 320 Amendments to Act proposed by Federal Reserve Board 323 Commercial failures in May 327 Fiduciary powers granted 328 Acceptances to 100 per cent * 328 Chart showing individual and bank deposits, taken from calls of Comptroller 328 Informal rulings of the Board 329 Law department 330 Business conditions throughout the 12 Federal Reserve districts 333 Distribution of discounts , 355 Acceptances 361 Federal Reserve Bank statements •_ 364 (jold imports and exports .. 368 Earnings on investments of Federal Reserve Banks 370 IV Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FEDERAL RESERVE BULLETIN VOL. 2 JULY 1, 1916 No. 7 WOKK OF THE BOARD. which have not elected to convert their allotments on either of the two previous dates may During the early, part of the month of June take up the entire amount on October 1. members of the Federal Reserve Board were When the Federal Reserve Board, on March frequently in attendance at meetings of State 6, 1916, approved the petition of banks in associations or at conferences with bankers F airfield County, Conn., to be attached to the away from Washington. Mr. Warburg and Federal Reserve Bank of Boston, it left open Mr. Harding attended the meeting of the New action on the request of certain other banks in York State Bankers' Association at Atlantic Connecticut which also desired to be trans- City on June 8 and 9. Mr. Delano and Mr. ferred. At a meeting of the Board on June Warburg visited the Federal Reserve Bank of 3 the question of giving a rehearing to these New York for a conference with its officers on other banks was further considered and it was June 12. • Gov. Hamlin addressed the National decided that while the Board was willing to Association of Credit Men at Pittsburgh, Pa., give such a hearing some time in June, it was on the morning of June 15 and spoke before the preferable that no definite action be taken for Robert Morris Club on the afternoon of the several months. One of the reasons for a postsame day. On June 21 Gov. Hamlin made an ponement, which influenced the Board, was address before the South Carolina Bankers7 the fact that the new clearing and collection Association at Hendersonville, N. C, and on plan is soon to go into operation and it seemed June 24 before the Virginia Bankers' Associa- reasonable that the Board should give the tion at Old Point Comfort, Va. Federal Reserve Bank of Boston an opportu- The Board's attention has been particularly nity to satisfy the convenience of the petitionfocused upon the Clayton Act and the recent ing Connecticut banks. amendment thereto, known as the Kern amend- Mr. Vance C. McCormick, of Harrisburg, ment. The Board has practically completed, Pa., resigned on June 17 as a Class C director with the assistance of its counsel, a plan of pro- of the Federal Reserve Bank of Philadelphia, cedure to be adopted by those seeking exemp- to take effect immediately. The reason for tion under the act. While the Clayton Act is Mr. McCormick's resignation was his election not effective until October 15, many inquiries as chairman of the Democratic National Comin regard to its exact application have already mittee, his duties in this capacity being of a been received. political nature and therefore inconsistent with Applications were received from Federal his remaining a Class C director. Reserve Banks to June 20 for the conversion Mr. W. J. Davis, of Jackson, Miss., a Class C of United States 2 per cent bonds into equal director of the New Orleans branch of the amounts of 3 per cent thirty-year bonds and 3 Federal Reserve Bank of Atlanta, died on per cent one-year notes. Federal Reserve June 12. Banks were authorized to convert in the Preparations for the operation of the Board's aggregate not to exceed $7,500,000 of bonds, clearing and collection plan on July 15 have each in proportion to its capital, the aggregate gone rapidly forward. All of the Federal Reconversion for the calendar year being $30,- serve Banks have issued their circulars to mem- 000,000. The further conversion of $7,500,000 ber banks supplementing the circular sent out will be made October 1, 1916. Those banks by the Board under date of May 1, 1916. Op- 309 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

310 FEDERAL RESERVE BULLETIN. JULY 1, 1916. position to the clearing plan still exists, but the tion of agents discussed problems of common Board believes that its actual operation will interest. Among the questions discussed were prove entirely satisfactory and largely over- note issues, the cost of Federal Reserve note come the natural prejudice and opposition issue and redemption, the relations of Federal which necessarily exists in some quarters. Reserve Banks with member banks and the One of the very interesting developments public, policies to be followed by Federal in connection with the plan is the completion Reserve Banks, and the duties of the agents of arrangements on the part of the Federal themselves. The meeting adjourned on Friday Reserve Bank of Boston to take over the work evening, June 2. It is expected that another of country clearing in New England heretofore conference with the agents will be held in conducted by the Boston Clearing House November. Association, an organization which was not only the first of its kind but which has a long and honorable career to its credit. This work The Meaning of "Par" Collection. will, on and after July 15, be incorporated in The Federal Reserve Board has been asked and carried on by the Federal Reserve Bank of to state what it means by the expression Boston, which will take over and assume the collection of checks at "par." In the Board's lease of the premises occupied by the Boston Circular No. 1, on the subject of clearing, dated Clearing House with its staff of employees. A May 1, the following expressions were used: more complete discussion of the action taken by the different banks in working out the "Each Federal Reserve Bank will receive at par from its member banks checks drawn on all clearing and collection problems will be found member banks, whether in its own district or on another page. other districts. It is also proposed to accept Representatives of clearing houses in New at par all checks drawn upon nonmember banks York, Chicago, St. Louis, Kansas City, Dallas, when such checks can be collected by the Federal Reserve Banks at par. Atlanta, Cleveland, Minneapolis, and Philadel- "Each Federal Reserve Bank will receive at phia met in Chicago on June 22 to consider par from other Federal Reserve Banks checks changes in the present method of handling drawn upon all member banks of its district check collections in order to conform to the and upon all nonmember banks whose checks Board's clearing and collection plan, which can be collected at par by the Federal Reserve will go into effect on July 15. At this meeting Bank. a committee of five was appointed, and a conference held in Washington on Tuesday, June "Immediate credit entry upon receipt subject to final payment will be made for all such 27. The committee was composed of G. M. items upon the books of the Federal Reserve Reynolds, of Chicago; Walter E. Frew, of Bank at full faee value, but the proceeds will New York City; F. O. Watts, of St. Louis; not be counted as reserve nor become available J. W. Perry, of Kansas City; and J. K. Ottley, to meet checks drawn until actually collected, in accordance with the best practice now preof Atlanta. vailing. The Federal Reserve Agents, who are also * # # * * the chairmen of the several boards of directors "It is manifest that items in process of colof the 12 Federal Reserve Banks, held an lection can not lawfully be counted as reserve important meeting in Washington beginning either by a member batik or by a Federal with May 29 and continuing through the week. Reserve Bank. Therefore, should a member All of the 12 Federal Reserve Agents were bank draw against such items the draft would present at the meeting. be charged against its reserve if such reserve were sufficient in amount to pay it; but any Members of the Federal Reserve Board met resulting impairment of reserves would be with the agents and there were several consubject to all the penalties provided by the ferences at which the Board and the conven- Act.5' Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

JULY 1, 1916. FEDERAL RESERVE BULLETIN. 311 It should be sufficiently clear from the above Deposits of Gold Bullion. excerpts that checks, even though collectible An act of Congress permitting the Secretary at par and given immediate credit entry on the of the Treasury, in his discretion, to receive books of the depositing bank, are not funds imdeposits of gold bullion and to hold gold bullion mediately available to be drawn against, and, and foreign coin up to two-thirds of the total' of course, this applies with equal force to each amount of gold certificates outstanding, was deposit account with a member bank. Thus, approved by the President on June 12, 1916. if a customer deposits with his bank a number The text of the amendment is given below: of checks, some of which it will take two, four, Be it enacted by tlie Senate and House of Repor six days to collect through a Federal Reserve resentatives of the United States of America in Bank, it is obvious that he is entitled only to Congress assembled, That section six of an act be given credit deferred by the length of time to define and fix the standard of value, to mainit takes to collect the items, or, if he asks for tain the parity of all forms of money issued or coined by the,,, United States, to refund the immediate credit in available funds, he should public debt, arid for other purposes, approved pay something for the privilege. March fourteenth, nineteen hundred, as However, as was stated in the June Bulletin, amended by the act approved March second, page 264, "The Federal Reserve Board has not nineteen hundred and eleven, be, and the same yet laid down any rule as to what charges a bank is hereby, further amended by striking from the last proviso of said section six the word " onemay make against its customers, but there is third77 and inserting in lieu thereof the word no intention at all that a member bank shall "two-thirds," making the last proviso of said collect its customers7 checks at a loss to itself; section six read as follows: that is to say, without some fee to cover cost "And provided further, That the Secretary of of collection." the Treasury may, in his discretion, receive, with the Treasurer or any Assistant Treasurer The expression printed upon some checks of the United States, deposits of gold bullion /'Collectible at par through Federal Reserve bearing the stamp of the coinage mints of the Bank/7 means that the check is collectible at United States, or the assay office in New York, full face value through the Federal Reserve certifying their weight, fineness, and value, in amounts of not less than $1,000 in value, and Bank, but if it is desired to use a check as cash issue gold certificates therefor of the descripthe element of time in transit must be paid for. tion herein authorized. But the amount of Under the principles above enunciated, a gold bullion and foreign coin so held shall not at member bank will be authorized to charge its any time exceed two-thirds of the total amount customers the amount per item charged by the of gold certificates at such time outstanding. And section fifty-one hundred and ninety-three Federal Reserve Bank for collecting their checks, of the Revised Statutes of the United States is say 1J or 2 cents per item, plus an interest hereby repealed." charge if funds are advanced before they have In urging the change of the law the Secretary been collected. of the Treasury submitted to Congress the fol- By providing that the Federal Reserve lowing explanation: Banks shall act as clearing houses for all member banks, the Act in effect establishes 12 focal This act permits the issuance of gold certificates against gold bullion and foreign gold points at which all checks can be centered and coin to the extent of one-third of the total gold collected, and it is fully expected thereby to certificates outstanding, the other two-thirds create a more efficient machine for check col- being secured by gold coin stored in the vaults lections than has ever existed in the country of the Treasury Department. before. The direct routing of items which it is There is at present a total of gold coin so held amounting to approximately $1,000,000,expected to establish in connection with this 000 and the amount of gold bullion held as a plan, should very considerably reduce time in reserve against gold certificates has reached transit, and last, but not least, the actual cost the prescribed one-third owing to the heavy of the service rendered should be less to the influx of gold since the commencement of hosbanks, and, hence, to their customers. tilities in Europe. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

312 FEDERAL RESERVE BULLETIN. JULY 1, 1916. The Treasury is placed in the position of 15,1916, and which will on that date supersede the present having to coin upward of $10Q00G0GQ in order intradistrict collection system. ; ; to offset the bullion receipts, and the expense Use of the collection system is voluntary.—No member of such coinage is deemed totally unnecessary bank is required to use the collection system, nor are any when one considers that the amount of gold formalities or resolutions required before it may be used. ' coin used as a circulating medium is infinitely A member bank may send items for collection through the small compared to the stock of gold coin stored Federal Reserve Bank regularly, occasionally, or not at in our vaults. Again, under the present provi- all; or may.collect them through present correspondents sions , it will be necessary to immediately turn or in any other manner considered advantageous. into coin all further bullion received, or at least Items which will be received.—We will receive from two-thirds of it, to permit the issuance of ad- member banks: ditional gold certificates with which to pay for (a) Checks on all member banks of the Federal Reserve the bullion, as payment is almost invariably System throughout the United States. requested in certificates. (6) Checks on all nonm ember banks in the United States The cost of coining $100,000,000 in gold is which can be collected by us at par. approximately $125,000, and there is no actual Par lists of member and nonmember banks on which demand for such additional coin for any pur- items will be received will be furnished from time to time. pose other than to store it in our vaults to be Uniform instructions.—To facilitate the handling of a held as a basis for further issue of gold certifi- large volume of items, it is understood that all checks cates. It might just as well be stored in the and drafts handled by the Federal Reserve Bank as cash form of fine gold bars, thus eliminating the ex- items are received under the following conditions: penses of coining it. 1. All items of $10 or under are not to be protested. 2. All other items are to be protested except those stamped on the face "N. P.," followed by the A. B. A. transit number of a bank indorser in the following form: Clearing Circulars Issued by Banks. (N. P. 2-30). Preliminary to putting into operation the 3. Advice to be telegraphed of dishonor of all items of plan of check clearings and collections outlined $500 or over. in the Federal Reserve Board's Circular No. 1, Items bearing other instructions should be accompanied by collection letters plainly marked "Special items," series of 1916, the 12 Federal Reserve Banks and will be received only for credit when paid. have sent to their member banks circulars Indorsement of items.—All items forwarded to the Federal setting forth the details of the plan. Each Reserve Bank should be indorsed without restriction to Federal Reserve Bank, while following the the order of Federal Reserve Bank of Chicago and show provisions of the Board's circular, has adapted on each side of the indorsement the American Bankers' Association transit number in prominent type. the general plan to the particular conditions of Restrictions as to indorsements.—To insure direct routing, its district by minor adjustments. The 12 this bank reserves the right to return any item drawn on a circulars^ however, are very similar in sub- bank located outside of this district when such item bears stance and it will, therefore, suffice to print the indorsement of a bank located outside of this district. in the Bulletin the circular issued by the When proceeds of items will be available.—Immediate credit entry at par, subject-to final payment, will be made Federal Reserve Bank of Chicago, which is for all checks received by this bank by 2 p. m., except fairly typical, and to point out the more im- Saturday, when the hour will be 12 o'clock noon. The portant deviations which appear in the cirproceeds of such items will not, however, be available for culars of other Federal Reserve Banks. withdrawal nor count as reserve until the lapse of time indicated in the attached schedule. FEDERAL RESERVE BANK OF CHICAGO, For the convenience of member banks, the schedule is 79 West Monroe Street, Chicago, June 15,1916. arranged in four divisions: To the member banks of district number seven: 1. Points on which checks are immediately available for reserve. CHECK CLEARING AND COLLECTION. 2. Points on which checks are available in two days. On May 1, 1916, you were advised of the action of the 3. Points on which checks are available in four days. Federal Reserve Board under which each Federal Reserve 4. Points on which checks are available in eight days. Bank is required to "exercise the functions of a clearing You are requested to sort checks into the four divisions, house for its member banks." We now present herewith listing each division on a separate sheet. This will enable the details of the collection and clearing system which will you to determine the day upon which the funds will be be inaugurated by the 12 Federal Reserve Banks on July available as reserve in this bank. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

JULY 1,1916. FEDEBAL EESEUVE BULLETIN. 313 Statements showing amount of uncollected funds.— Collectible at par through the Federal Reserve Bank of A transcript of account showing the gross balance, the Chicago.—Member banks are entitled to place the words, amount of uncollected funds, and the actual reserve "Collectible at par through the Federal Reserve Bank of balance will be sent to each member bank on every day Chicago," on their own checks and the checks used by upon which there is a transaction in the account or a change their depositors. Your attention is called to the desirin the amount of uncollected funds. ability of availing of this privilege. Method of handling the items.—Checks drawn on member District number on checks.—To facilitate the sorting of banks of this district will be forwarded direct to the paying checks by member banks and by Federal Reserve Banks, banks and will be charged to their accounts on the second it is requested that you have clearly imprinted on all business day after the date of sending, thus giving member your checks and drafts the figure 7, preferably in a large banks time to provide funds to cover. skeleton figure in the center of the check. Items drawn on nonmember banks will be sent to such Transfers of funds.—It is suggested that member banks member banks as desire to receive them, or may be sent desiring to transfer funds should request their correby arrangement direct to nonmember banks. spondents to make such transfers and should not, for that Unpaid items not subject to protest must be returned on purpose, send for credit their drafts drawn on their correday of receipt. Protested items must be returned not spondents. later than the day after receipt. Unpaid items must not Penalty for impairment of reserves.—With the inaugurabe held for any purpose whatsoever except for immediate tion of the collection system, the penalty for impairment protest. of reserves provided by the Federal Reserve Act will be Direct routing.—When time can be saved and the imposed. You will be requested to report monthly the volume of items warrants, arrangements may be made with average reserve required to be kept with the Federal this bank for direct routing between member banks of this Reserve Bank. Impairment of the reserve, if any, will district or between member banks of this district and other be ascertained by comparing the amount of the average districts, or between member banks of this district and reserve required with the average actual reserve as shown other Federal Reserve Banks. by our books. The penalty for the present, to be figured How member banks may maintain balances.—Member on the deficiency in reserve, will be an interest charge banks may maintain their balances with us: fixed by the Federal Reserve Board at a per annum rate (a) By depositing Chicago exchange. of 2 per cent above the maximum discount rate in this (6) By depositing out-of-town items, the proceeds of district, but in no case less than 6 per cent. which will be available as reserve in accordance with the Conditions under which member banks may use system.— time schedule. Every member bank sending items to us, after the inau- (c) By shipment to us at our expense of properly sorted guration of the collection and clearing system, will be lawful money or Federal Reserve notes when unable to understood to have agreed to the terms and conditions supply checks or Chicago exchange in sufficient volume set forth in this bulletin and to have thereby specifically to offset the items sent to them. agreed that in receiving such items the Federal Reserve (d) Byrediscounting. Bank of Chicago will act only as the collecting agent of Member banks are required by the Federal Reserve the sending bank; will assume no responsibility other than Board to provide funds to cover at par all checks received due diligence and care in forwarding such items promptly; from or for the account of their Federal Reserve Bank; and will be authorized to send such items for payment Provided, however, That a member bank may ship lawful direct to the bank on which drawn or to another agent for money or Federal Reserve notes from its own vaults at the collection at discretion. expense of the Federal Reserve Bank to cover any de- Cooperation of member banks desired.—The new collecficiency which may arise because of and only in case of tion system is based upon the provisions of the Federal inability to provide funds to offset checks received by Reserve Act, and the details herein outlined are the result or for the account of the Federal Reserve Bank. of careful study of the problems involved and of experience Service -charge.—As it is optional with each member bankgained in operating the existing intradistrict system. whether it will collect checks through the Federal Reserve The plan as presented is subject to modification in the Bank or through other channels, the cost of operating the future, if experience in operating proves that changes are system of check clearing and collection will be borne desirable or necessary. It is our desire that the system exclusively by the banks that use it and in exact propor- be conducted in such manner as to render valuable service tion to the extent of its use by the individual banks. to those who use it, and to this end your cooperation is The actual cost of operation will be assessed monthly requested. on a per item basis upon the member banks depositing We invite suggestions from member banks and shall items. The service charge for the present will be 1£ cents cheerfully respond to any inquiries in regard to the details per item. Should the cost per item decrease as the system of the plan, either through correspondence or by personal develops the service charge will be reduced accordingly. interview. No service charge for the present, at least, will be made Very respectfully, for collecting items drawn on Chicago banks. JAMES B. MCDOUGAL, Governor. 46718—16—-2 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

314 FEDERAL RESERVE BULLETIN. JULY 1,1916. DATE OF INAUGURATION. BANK TRANSFERS. July 15 is the date fixed in all the districts The Federal Reserve Banks of Chicago, for the inauguration of the new plan. The Minneapolis, and San Francisco have indicated Federal Reserve Bank of St. Louis will place their wish to have bank transfers effected by an it in operation, so far as concerns those banks order between the banks rather than by the which are already members of its collection issuance of bank drafts. The Federal Reserve system, at a somewhat earlier date, but will Bank of Minneapolis will make a charge at the not make operations general until July 15. market rate of exchange for drafts on a Federal Reserve Bank issued and sent out of the dis- CHECKS ON NONMEMBER BANKS. trict, provided they amount to more than The Federal Reserve Bank of San Francisco $10,000 in one day. announces in its circular that it will receive from member banks items on all nonmember PENALTY FOR IMPAIRMENT OF RESERVES. banks in District No. 12. The penalty for impairment of reserves is practically uniform in all cases, being fixed by SHIPMENTS OF LAWFUL MONEY AND FEDERAL the Federal Reserve Banks of Boston, New RESERVE NOTES. York, Philadelphia, Cleveland, and Richmond In carrying out the provisions of the Board's at 2 per cent above the discount rate for 90-day circular permitting member banks to ship lawpaper. The Federal Reserve' Banks of Chicago, ful money or Federal Reserve notes to the Minneapolis, and Kansas City fix the rate at 2 Federal Reserve Bank at its expense, the Fedper cent above their maximum discount rates. eral Reserve Bank of Atlanta has also indicated The Federal Reserve Bank of San Francisco its willingness to have national-bank notes has fixed the rate 3 per cent above its 10-day shipped in this manner, but is not prepared discount rate, while the Federal Reserve Banks to pay the cost of shipment of gold or silver of Atlanta, St. Louis, and Dallas have not ancoin. The Federal Reserve Banks of Atlanta,.,. nounced the rate at which the penalty will be Minneapolis, and San Francisco have stipuimposed. lated that -they will not pay the cost of shipment of funds to cover cashier's checks or AVAILABILITY OF UNCOLLECTED FUNDS. drafts on a Federal Reserve Bank issued by Four banks—those at Atlanta, St. Louis, a member bank. Kansas City, and San Francisco—have stated SERVICE CHARGE. in their circulars that uncollected items in the There is practical uniformity in the service hands of the Federal Reserve Bank, while not charge to be imposed by the different Federal available to count as reserve required to be Reserve Banks. All except the Federal Re- held with the Federal Reserve Bank, can be serve Banks of Dallas and San Francisco will counted "as part of the optional reserve which charge 1J cents per item and make no charge member banks are permitted to hold either in for items on banks in their own Federal Re- vault, in the Federal Reserve Bank, or with serve city. The Federal Reserve Bank of Dal- approved reserve agents. las will impose a charge of 2 cents per item, and INDORSEMENTS BY MEMBER BANKS OF ITEMS the Federal Reserve Bank of San Francisco will SENT. make a charge on cash items payable at points other than San Francisco, New York City, and Two Federal Reserve Banks, those at Rich- Chicago of 2 cents per item. The Federal mond and Kansas City, have requested that Reserve Banks of St. Louis, Kansas City, the indorsement stamp used by member banks Dallas, and San Francisco will make no charge to indorse checks to the Federal Reserve Bank on drafts drawn on other Federal Reserve also carry the indorsement from the Federal Banks. Reserve Bank to "any Federal Reserve Bank Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

JULY 1,1916. FEDEKAL RESEBVE BULLETIN. 315 or member bank." This is designed to relieve Leave of Absence to Gov. Strong, these Federal Reserve Banks of the necessity of Mr. Benjamin Strong, governor of the Fedindorsing the large number of checks which eral Reserve Bank of New York, has, with the will pass through their hands. consent of the Federal Reserve Board, been DEALINGS IN EXCHANGE ON FEDERAL RESERVE granted leave of absence because of ill health. CITIES. The board of directors of the New York bank The Federal Reserve Bank of St. Louis, anhave appointed Mr. Robert H. Treman, of ticipating that the development by the Federal Ithaca, N. Y., one of the directors of the bank, Reserve Banks of a national clearing system deputy governor ad interim. will create an active market for exchange on The following announcement was issued from the various Federal Reserve cities, announces New York bank under date of June 22: that it will publish rates at which it will buy At a meeting held to-day the board of direcand sell exchange on such cities. The Federal tors were advised that Gov. Strong, owing to Reserve Bank of San Francisco in its circular ill health, has been ordered by his physician establishes rates for business of this kind, and to take a complete'rest for a period of several also announces that drafts issued by its mem- months. The directors, realizing .that Mr. ber banks will be receivable at other Federal Strong's condition is primarily due to his Reserve Banks for immediate credit at par, and devoted and unceasing efforts in the organization and operation of the bank, have granted that a charge will be made against the drawer of him the necessary leave of absence. drafts in excess of $1,000 each at the current Mr. Woodward, who has- since, the opening rate for sale of interdistrict telegraphic trans- of the bank held the office of deputy governor fers. It also announces that it will accept in an advisory capacity, will continue as heredrafts drawn on other Federal Reserve Banks tofore, but' it is necessary to have an active executive who can give constant attention to for immediate credit at par without service the business of the bank. The board has, therecharge. fore, appointed Mr. Robert H. Treman, of Ithaca, N. Y., one of our directors, a deputy FEDERAL RESERVE BANK OF BOSTON TAKES OVER governor ad interim. He has kindly consented BOSTON COUNTRY CLEARING HOUSE. to come to New York and will assume his active The Federal Reserve Bank of Boston an- duties at the office of the bank on Tuesday, nounces in its circular that it has entered into June 27. an agreement with the Boston Clearing House Respectfully, Association to take over the country clearing PIERRE JAY, Chairman, Board of Directors, heretofore carried on by the clearing house and which will be incorporated in and carried on by the Federal Reserve Bank of Boston. Cost of Gold Settlement Fund. The Federal Reserve Bank of Dallas is to handle its clearing and collection system in The expense of operating the gold settlement clearing-house form, each bank being charged fund from November 20, 1915, to May 20, 1916, or credited each day, not for the total amount a period of six months, is estimated by the of items brought against it or deposited by it, Federal Reserve Board at $453.74. The operbut for the net difference between these totals. ating expense for the previous six months was The Federal Reserve Bank will send to each estimated at $1,037.30, the former sum being bank which has a debtor balance a settlement greater because of some expenses of organizaslip to be signed, which will authorize the tion and equipment. The items making up Federal Reserve Bank to charge its account. the amount are given below. As these returns come in, the creditor banks The Federal Reserve Board voted on June will receive final payment in the order of the 22, 1916, in view of the smallness of the sum amount of their credit balances, those having involved, to include this $453.74 in the amount the heaviest balances being paid first. to be covered by the assessment made upon Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

316 FEDERAL BESBBVE BULLETIN. JULY 1, 1916. Federal Reserve Banks for the general expenses eral Reserve Act, up to July 1, 1916, amount to of the Federal Reserve Board. The items are $10,290,600. There will be converted as of as follows: July 1, 1916 $9,574,200, making a total of ; $19,864,800. The remainder of the $30,000,000 Part of salary of private secretary to member of Board, designated'to act as deputy settling authorized to be converted in 1916 may be agent, chargeable to gold settlement fund ($500 taken by Federal Reserve Banks on October 1, per year, beginning Jan. 1, 1916) $194. 40 which is the next and last conversion date for Telegrams - 240. 00 the year. Printing, etc 19. 34 Only one Federal Reserve bank decided not Total 453.74 to avail itself of the conversion privilege at this time. Banks not having converted their full quota prior to October 1 may do so on that date. New National Bank Charters. Below is given a table showing the conver- The Comptroller of the Currency reports the sions of bonds by banks to and including July following increases and reductions in the num- 1, 1916, the total allotments for 1916, and the ber of national banks and the capital of amounts which may still be converted on Octonational banks during the period from May 27, ber 1. 1916, to June 23, 1918: Conversion of United States bonds. Banks. New charters issued to 10 Conversions as of July 1,1916. Amounts With capital of $530, 000 all T o o tm ta e l nt m w a h y ic b h e Increase of capital approved for 3 Bonds. Notes. Total. for 1916. co O nv ct e . r t 1 e , d With new capital of 140, 000 1916. Aggregate number of new charters and banks Boston 1250,000 $250,000 $500,000 $2,763,900 $2,263,900 increasing capital 13 New York 2,283,300 2,282,000 4,565,300 6,130,500 1,565:200 With aggregate of new capital authorized 670, 000 Philadelphia 1,318,800 818,000 2,136,800 2,849,100 712,300 Cleveland 1,200,000 1,200,000 2,400,000 3,249,600 849,600 Richmond 686,700 684,000 1,370,700 1,827,600 456,900 Number of banks liquidating (other than Atlanta 531,900 526,000 1,057,900 1,410,600 352,700 Chicago 1,850,000 850,000 2,700,000 3,635,400 935,400 those consolidating with other national St. Louis 572,500 570,000 1,142,500 1,523,400 380,900 Minneapolis 349,300 350,000 699,300 1,398,600 699,300 banks) 9 Kansas City 617,000 616,000 1,233,000 1,644,000 411,000 Capital of same banks 430,000 Dallas 530,300 529,000 1,059,300 1,412,400 353,100 San Francisco.. 500,000 500,000 1,000,000 2,154,900 1,154,900 Number of banks reducing capital 1 Reduction of capital 20,000 Total 10,689,800 9,175,000 19,864,800 30,000,000 10,135,200 Total number of banks going into liquida- Owing to the fact that Federal Reserve tion or reducing capital (other than those Banks were known to have purchased pracconsolidating with other national banks).. 10 tically the required amount of $25,000,000 Aggregate capital reduction. 450, 000 early in the year, there was a comparatively The foregoing statement shows the aggregate of small offering of bonds by member banks for increased capital for the period of the banks sale to Federal Reserve Banks through the embraced in statement was 670,000 Against this there was a reduction of capital Treasurer of the United States. The following owing to liquidations (other than for consoli- resolution was passed by the Board on June 23, dation with other national banks) and reduc- 1916: tions of capital of 450, 000 Whereas, It appears that the 12 Federal Re- Net increase 220,000 serve Banks have purchased in the open market bonds in excess of the amount which might have been allotted, to such banks at the Conversion of United States Bonds. end of this quarterly period on the basis heretofore determined upon and announced by The 2 per cent United States bonds converted the Board: Now, therefore, be it into thirty-year 3 per cent bonds and one-year Resolved, That it is the sense of the Board 3 per cent notes, under section 18 of the Fed- that no necessity exists for enforcing the re- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

JULY 1,1916. FEDERAL RESERVE BULLETIN. 317 quirement provided for under section 18 of the though the Federal Reserve Bank will take Federal Reserve Act at the end of this quar- over the physical property' of the association, terly period ending June 30, 1916, and that it assume the lease of its premises, and take into will not at this time require the Federal Reserve the employ of the bank the association's Banks to purchase any of those bonds which are offered for sale by member banks through the manager and clerks, the association will main- Treasurer of the United States under the pro- tain its status of a voluntary organization with visions of section 18. officers elected by its members. Be it further resolved, That the secretary be In this latter capacity the association willinstructed to send a copy of this- resolution to continue to. exercise its normal supervising the various Federal Reserve Banks and to the member banks which have offered bonds for functions over the conduct of its members, and sale in order that they may be notified of the it will further effect its own daily clearing of action of the Board in the premises. Boston checks, the Federal Reserve Bank furnishing for this purpose the clerical force, space, and equipment. The clearing balances once having been established, however, all settle- Boston Bank Takes Over Clearing House. ments will be effected through the Federal The management and operation of the Boston Reserve Bank, as has been the practice in Clearing House will, on July 15, be taken over Boston since that bank was opened. The by the Federal Reserve Bank of Boston. The staff and equipment which the Federal Reserve Boston Clearing House Association was one of Bank will thus acquire will be utilized by the the first clearing associations to be established bank in its clearing department to be estabin this country and not ovAj conducts a daily lished in connection with the country-wide clearing of checks among its Boston members, collection and clearing system recently authorbut operates a so-called foreign department ized by the Federal Reserve Board. in which checks drawn upon all country banks This taking over of the Boston Clearing throughout the New England States are daily House has closely followed and becomes a part assembled and forwarded for collection and of the movement to establish a collection and remittance. This foreign department was clearing system through the Federal Reserve established in 1900 and has proved most satis- Banks. The officers of the Federal Reserve factory and effective. Bank of Boston have been in negotiations with Similar systems for the collection of country the officers of the Clearing House Association checks have been established in several other for some time, but it has neither been practical cities of the country in connection with their nor feasible to take the present step until the clearing houses, and in many instances the other Federal Reserve Banks were in a position foreign department of the Boston Association to put into force an interdistrict system. has been used to quite an extent as a model. The Boston Clearing House will be taken over By the terms of the agreement which has on the day set for putting into force the Fedbeen entered into between the Federal Keserve eral Reserve clearing and collection system. Bank of Boston and the Boston Clearing The equipment which will be acquired, and the House Association the collection of all checks trained force which will be received will enable drawn upon New England banks outside of the Federal Reserve Bank of Boston to start Boston will be entirely taken over by the its clearing department under most favorable Federal Reserve Bank, which will perform conditions. this service in the future under similar rules The cooperation of the Boston Clearing and regulations to those now in force. House Committee in this connection, as in With respect to the daily clearing of checks many other particulars pertaining to the develbetween the associated banks of Boston, how- opment of the Federal Reserve Bank of Boston, ever, the situation is slightly different. Al- has been most helpful and beneficial. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

318 FEDERAL RESERVE BULLETIN. JULY 1,1916. Assessment by Federal Reserve Board. this Board, a receipt for payment made. Such assessment will be collected in two installments Acting under the provisions of the Federal of one-half each; the first installment to be Reserve Act, the Federal Eeserve Board, on paid on July 1, 1916, and the second half on September 1, 1916. June 16, voted an assessment of 0.00075 upon the capitalization of Federal Eeserve Banks to Estimate for July, 1916, assessment. cover the estimated general expenses of the Total encumbrances (i. e. pay rolls, ex- Board from July 1 to December 31, 1916. The penditures and commitments) for the assessment is based upon a capitalization of month of November, 1915, taken as a Federal Eeserve Banks on June 8, 19.1.6, of typical month $17,049.06 $109,719,233.24. The rate of assessment will Total encumbrances (i. e. pay rolls, exyield $82,289.42, and is the lowest which has penditures and commitments) for the been levied by the Board. This is made pos- month of May, 1916, taken as a typical month. 16, 663.02 sible through the fact that a balance has been Estimated monthly requirements, July accumulated. The resolution of the Board and to December, 1916 17,545.46 the figures on which the assessment is based Estimated increase over May, 1916. 882.44 follow: Estimated requirements, July to De- Whereas, under section 10 of the Act approved cember, inclusive, 1916 105, 272. 76 December 23, 1913, and known as. the Fed- Unencumbered balance, eral Eeserve Act, the Federal Eeserve Board Junel, 1916..... $53,216.63 is empowered to levy semiannually upon the Receipts, June 1 to 15, 1916: Federal Eeserve Banks in proportion to their Reimbursements 300.00 capital stock and surplus, an assessment suf- Bulletin.. 77.00 ficient to pay its estimated expenses, including the salaries of its members, assistants, 53,593. 63 attorneys, experts, and employees for the Estimated requirehalf year succeeding the levying of such ments for June, 1916. 15,475.59 assessment, together with any deficit car- Estimated unencumbered balance, July ried forward from the preceding half year; 1,1916 38,118.04 and Whereas, it appears from estimates submitted 67,154.72 and considered that it is necessary that a Total capitalization Federal Reserve fund equal to seventy-five one thousandths Banks June 8,1916 109, 719,233.24 of 1 per cent (0.00075) of the capital stock of Rate of assessment to produce $67,170.00. 0.0006122 the Federal Eeserve Banks be created for Rate of assessment to produce $71,317.50. . 00065 the purposes hereinbefore described, exclu- Rate of assessment to produce $82,289.42. . 00075 sive of the cost of engraving and printing Rateofassessmenttoproduce$109,719.23. .001 ' Federal Eeserve notes: Now, therefore, In view of the balance of $38,118.04, brought forward, Be it resolved, That pursuant to the authority it is recommended that an assessment of approximately vested in it by law, the Federal Eeserve Board 80 per cent for the estimated expenditures for the next hereby levies an assessment upon the several six months be levied. Federal Eeserve Banks of an amount equal to SHERMAN ALLEN, seventy-five one thousandths of 1 per cent Fiscal Agent. (0.00075) of the total capital stock of such Assessment of 0.00075 approved. banks, and the fiscal agent of the Board is F. A. DELANO, hereby authorized to collect from said banks W. P. G. HARDING, such assessment and execute, in the name of Committee on Organization and Expenditures. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

JULY 1,1916. FEDERAL RESERVE BULLETIN. 319 Detailed statement of expenditures and commitments as a basis of estimate. Estimated av- January. February. March. April. May. June. Total. M av o e n ra th g l e y . m re o q m ui re .„ ment,July 1 to Dec. 31,1916. PERSONAL SERVICES. Board and its clerks 374.98 $7,374.98 $10,977.86 $7,374.98 $7,354.15 $7,374.98 $47,831.93 $7,971.99 $7,374.99 Secretary's office 456.65 2,456.65 2,373.32 2,198.32 1,623.32 1,623.32 12,731.58 2,121.93 2,028.32 Counsel's office 1,866.67 1,866.67 2,068.66 2,066. 67 2,066.67 11,800.00 1,966.67 2,066.67 Division of Audit and Examination., 1,254.16 1,254.16 1,254.16 1,254.16 1,254.16 7,737.46 1,289.58 1,288.16 Division of Reports and Statistics 683.33 707.33 878.66 866.66 4,869.30 811. 55 906.66 Division of Issue 651. 66 717.00 791.66 716. e 646.66 646.66 4,170.30 655.66 Telephone operator 60.00 60.00 60.00 60.00 60.00 360.00 60.00 60.00 315.00 315.00 315.00 315.00 315.00 315.00 1,890.00 315.00 345.00 Charwomen... 60.00 60.00 60.00 60.00 60.00 60.00 360.00 60.00 60.00 Contingencies. 200.00 200.00 Total. 14,934.94 14,811.79 18,577.33 14,912.44 14,246.62 14,267.45 91,750.57 15,291,76 14,985.46 NONPERSONAL SERVICES. Transportation and subsistence of persons: Board and its clerks 225.82 144.90 20.30 391.02 65.17 100.00 Secretary's office 69.00 69.00 11.50 20.00 Division of Audit and Examination 584.36 178.58 "622*65 *387."ii 456.54 600.00 Division of Reports and Statistics Counsel's office 136.15 158.42 294.57 49.10 10.00 Messengers (car fare) 5.00 5.00 5.00 5.00 20.00 3.34 5.00 Transportation of things .33 .33 .05 Communication service: Telephone 70.54 38.29 59.83 34.98 40.00 40.00 283.64 47.27 50.00 Telegraph ,. 331.69 219.67 322.71 300.00 200.00 200.00 1,574.07 262.34 300.00 Postage . 45.00 45.00 7.50 10.00 Printing, binding, etc 850.10 875.91 934.32 734.17 756.04 703.20 4,853.74 808.96 1,000.00 Engraving Contract repairs 2.75 6.75 2.50 9.50 21.50 3.60 5.00 Electricity (light and power) 30.00 30.00 30.00 30.00 30.00 30.00 180.00 30.00 30.00 Steam (heat) 15.00 15.00 15.00 15.00 60.00 10.00 10.00 Other nonpersonal services 28.65 7.-50 "i6i.*82" 137.97 23.00 25.00 Supplies: Stationery 127.57 41.81 133.48 171.44 62.36 30.00 566.66 94.44 100.00 Periodicals 10.00 14.10 .23 109.93 134.26 22.38 10.00 Other 43.58 13.91 11.52 162.95 58.74 *"i2.*32 303.02 50.50 50.00 Equipment: Furniture and office equipment 80.10 278.39 451.12 39.95 445.20 1,294.76 215.79 225.00 Books 20.75 4.50 4.35 8.00 9.20 46.80 7.'80 10.00 Total (other than salaries).. 2,373.84 1,703.81 2,910.30 2,403.10 2,416.40 1,208.14 13,015.59 2,169.26 2,560.00 Grand total 17,308.78 16,515.60 21,487.63 17,315.54 16,663.02 15,475.59 104,766.16 17,461.02 17,545.46 DISCOUNT RATES. Discount rates of each Federal Reserve Bank in effect June 22, 1916. Agricul- 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 r s d e i i r a t v i y 3 e e s 0 s . , t M i o o n f a c 9 o t l 0 u u v r d s e i i r a t v i y 6 e e 0 s s . , p l t i a 9 u v p 0 r e e a - d r l s a t a o o y n v c s d e k . r T in o c 6 lu 0 s d iv a e y . s, O 9 v 0 e r d a 6 y 0 s t , o m p C a o o p d m e it r - y . m i b n P o a a u o r p k p g e e e h r n t t . inclusive. Boston 3 New York f Philadelphia 13 Cleveland I Richmond. If Atlanta Atlanta (New Orleans branch). 3J Chicago 33f-4 St. Louis 43 Minneapolis Kansas City Dallas 3-5 San Francisco 1 Rate for commodity paper maturing within 90 days, a Rate for bills of exchange in open market operations. * Rate for trade acceptances bought in open market without member bank indorsement. * A rate of 2 to 4 per cent for bills with or without member bank indorsement has been authorized. 6 Rate for commodity paper mattering within 30 days, 3£ 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

320 FEDERAL RESERVE BULLETIN. JULY 1, 1916. GOLD SETTLEMENT FUND. SIR : Acting under instructions of the respective chairmen of Conferences of Governors and Quarterly audit of the gold settlement fund Federal Reserve Agents, we have made an was made on May 12, 1916, for the period from audit of the accounts of the gold settlement fund and the Federal Reserve Agents7 fund, as February 3. Reports of the audit follow: at the close of business May 11, 1916. WASHINGTON, June 2, 1916. Present while counting the gold certificates To the Federal Reserve Board: were the following gentlemen: W. M. Imlay, representing Federal Reserve Board; Ray M. I have the honor to report that I was present at and witnessed the audit of the accounts of Gidne}^, deputy settling agent; John De La the gold settlement fund and of the Federal Mater, representing Federal Reserve Board. Reserve Agents' fund, made on May 12, 1916, Proper reconcilements of all balances have by Messrs. J. M. Slattery, representing Federal been received. Reserve Banks, and W. F. Taylor, representing The result of this audit is shown in the two Federal Reserve Agents, there also being pres- exhibits attached hereto: Exhibit A, balances; ent Mr. Ray M. Gidney, deputy settling agent, Exhibit B, gold certificates counted. and Mr. John De La Mater. Respectfully submitted. Attached hereto are duplicate copies of the J. M. SLATTERY, reports, dated Ma}^ 26, 1916, of Messrs. Slattery Representing Federal Reserve Banks. and Taylor, made ^ to the chairman of the Con- W. F. TAYLOR, ference of Governors and to the chairman of the Representing Federal Reserve Agents. Conference of Federal Reserve Agents, with Exhibit A, showing the balance to the credit of each Federal Reserve Bank and each Federal Amount of clearings and transfers, Federal Reserve Banks, Reserve Agent, and Exhibit B, containing a from May 26, 1916, to June 22, 1916, inclusive. list of the United States Treasury gold certificates counted, the total amount in the two Total Balances. Transfers. funds on the date of audit being $120,390,000. clearings. One hundred eighteen million nine hundred eighty thousand dollars of this amount was Settlement of— Junel, 1916 $60,815,000 $6,007,000 $4,3.79, COO in the possession of the settling agents, the June 8,1916 71,515,000 10,831,000 2,800,000 June 15, 1916 66,682,000 6,011,000 4,104,000 amount being verified by me, and $1,410,000 June 22,1916 70,470,000 5,592,000 2,328,000 was in transit from the Treasurer of the United Total 269,482,000 28,441,000 13,611,000 States, a certificate for which was furnished by Previously reported 1,125,591,000 121,130,000 46,441,000 the cashier of the Treasury. Total since Jan. 1, 1916....1,395,073,000 149,571,000 60,052,000 All balances have been verified in writing by Total for 1915 1,052,649,000 the Federal Reserve Banks and Federal Reserve Total for period May 20, 1915, to June 22, 1916....2,447,722,000 Agents, the reconcilements being also hereto attached. Respectfully submitted. W. M. IMLAY, Representing Federal Reserve Board. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

JULY 1,1916. FEDERAL RESERVE BULLETIN. 321 Changes in otvnership of gold. To May 25,1916. From May 26,1916, to June 22,1916.1 Total change from May 20, 1915, to June 22,1916.2 Federal Reserve Bank of— Balance to credit May 25, Decrease. Increase. 19 d 1 e 6 p , o p s l i u ts s o n f et Ba 2 l 2 an ,1 c 9 e 1 J 6 u . ne Decrease. Increase. Decrease. Increase. gold since that date. Boston. $6,151,000 $11,881,000 $14,430,000 $2,549,000 $8,700,000 New York. $125,955,000 12,045,000 2,955,000 $9,090,000 kikh.645.666 Philadelphia 26,901,000 7,541,000 13,167,000 32,527,000 Cleveland. 10,807,000 11,317,000 11,302,000 15,666* 5,626,000 10,792,000 Richmond * 12,872,000 14,282,000 14,493,000 2ii 666 13,083,000 Atlanta 14,324,000 4,714,000 5,392,000 678,000 15,002,000 Chicago 18,333,000 9,177,000 4,562,000 4,615,000 22,948,000 St. Louis.. "" 8," 859," 666" 4,319,000 6,494,000 2 175 666 """"ii," 634*666 Minneapolis.. 6,311,000 5,711,000 5,628,000 83,000 6,228,000 Kansas City 13,120,000 6,987,500 8,180,500 1,193,000 ;;;;;;;;;;;;;; 14,313,000 Dallas. . 14,700,000 9,722,500 9,154,500 568*666" 14,132,000 San Francisco 30,243,000 8,213,000 10,152,000 1,939,000 32,182,000 Total 144,288,000 144,288,000 105,910,000 105,910,000 14,371,000 14,371,000 157,993,000 157,993,000 1 Changes in ownership of gold during period May 26,1916, to June 22, .1916, equal 5.1 per cent of obligations settled. 2 Total changes in ownership of gold equal 6.3 per cent of obligations settled. Summary of transactions, May 26, 1916, to June 22, 1916. Gold. Transfers. Settlement of June 1,1916. Balance June 1,1916, Federal Reserve last state- balance in Bank of— m 2 e 5 n , t 1 , 9 M 16 a . y d W ra i w th n - . Deposited. Debit. Credit. de N b e i t ts. d T e o b t i a ts l . c T re o d t i a t l s . , cr N ed e i t ts. f c u l n e d a ri a n f g te . r N Bo ew st o Y n ork 11 2 1 ,8 0 8 * 1 5 , 0 0 0 0 0 0 kib bob bob $1,500,000 $1,0 6 0 4 0 9 , . 0 0 0 0 0 0 "$3*326," 666" $ 1 5 6 , , 6 1 4 6 4 9 , , 0 0 0 0 0 0 $ 1 6 2 , , 5 8 7 4 0 9 , , 0 0 0 0 0 0 $926,000 $1 9 2 , , 3 3 7 0 4 7 , , 0 0 0 00 0 Philadelphia 13,381,000 $5,000,000 170,000 1,530; 000 8,130,000 10,163,000 2,033,000 12,114,000 Cleveland 11,217,000 100,000 632," 666' 1,490,000 1,979,000 489,000 11,174,000 Richmond 13,392,000 280,000 500,000 36,000 7,219,000 7,183,000 13,136,000 Atlanta 4,714,000 125,000 1,909,000 1,784,000 4,589,000 Chicago .... 877,000 "4",'806,'666" "i," 266,'666' 9,844,000 10,577,000 "**733,*666" 7,610,000 St. Louis 4,419,000 2,277,000 6,758,000 4;481,000 2,142,000 Minneapolis 4,711,000 600,000 120,000 197,000 77,000 4,188,000 Kansas Citv 7,537,500 376,666" 239,666* 2,865,000 2,626,000 6,928,500 Dallas 9.032,500 1 147 000 383,000 822,000 439,000 8,324,500 San Francisco 6^103,000 760,000 . 2,800,000 284,000 1,584,000 1,300,000 9,443,000 Total 89,310,000 6,130,000 18,150,000 4,379,000 4,379,000 6,007,000 60,815,000 60,815,000 6,007,000 101,330,000 Gold. Transfers. • Settlement of June 8, 1916. Balance June 8,1916, Federal Reserve last state- balance in Bank of— m 1 e , n 1 t, 9 1 J 6 u . ne d W ra i w th n - . Deposited. Debit. Credit. de N b e i t ts. d T e o b t i a ts l . c T re o d t i a t l s. cr N ed e i t ts. fu cl n e d a ri a n ft g e . r Boston $12,307,000 $500,000 $5,384,000 $6,043,000 $659,000 $13,466,000 New York 9,374,000 j 2,000,000 $7,656,000 20,875,000 13,219,000 3,718,000 Philadelphia 12,114,000 300,000 7,355,000 11,426,000 4,071,000 16,485,000 Cleveland 11,174,000 $300,000 3,122,000 3,209,000 87,000 10,961,000 Richmond 13 136 000 $i50,666 ""226,* 666" 9,735,000 9,515,000 13,066,000 Atlanta. ... 4,589,000 456,000 2,104,000 1,648,000 4,133,000 Chicago 7,610,000 1,000,000 2,499,000 12,813,000 10,314,000 6,111,000 St. Louis 2,142,000 ' "2," 666,* 666**..."'""*"." 6,915,000 9,583,000 **2,*668*666" 2,810,000 Minneapolis 4,188,000 205,000 844,000 639,000 4,827,000 Kansas City 6 928 500 2,517,000 4,148,000 1,631,000 8,559,500 Dallas 8,324,500 100,000 425,000 854,000 429,000 8,853,500 San Francisco 9,443,000 500,000 65,000 712,000 617,000 9,590,000 Total 101,330,000 1,250,000 2,800,000 2,800,000 10,831,000 71,515,000 71,515,000 10,831,000 102,580,000 46718—16 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

322 FEDERAL KESEEVE BULLETIN. JULY i, 1916. Summary of transactions, May 26 1916, to June 22, iWG—Continued. Balance Gold. Transfers. Settlement of June 15,1916. June 15, Fed B er a a n l k R o e f s — erve m la e s n t t s , t J a u te n - e 19 a 1 n 6 c , e b m al- 8, 1916. d W ra i w th n - . Deposited. Debit. Credit. . de N b e it t s. d T e o b t i a ts l . c T re o d t i a t l s. cr N ed e i t ts. fu cl n e d a ri a n f g te . r Boston $13,466,000 $200,000 $650,000 $7,438,000 $7,738,000 $300,000 $14,216,000 New York 3,718,000 2,850,000 $2,890,000 16,001,000 13,111,000 3,678,000 PhiladelDhia 16,485,000 '$i,"6io,"o66' 4,000 3,055,000 10,359,000 7,304,000 12,424,000 Cleveland 10,961,000 4," 666' 1,814,000 2,588,000 """774,"666" 11,731,000 Richmond 13,066,000 "Hob, boo' 500,000 . 7,60'6,000 8,671,000 1,065,000 13,731,000 A-t^nta 4 133 000 1,685,000 2,432,000 747,000 4,880,000 Chicago . . .. 6, 111, 000 1,000,000 1,000,000 600,000 10,784,000 10,888,000 104,000 6,815,000 St. Louis 2,810,000 1,000,000 7,134,000 8,792,000 1,658,000 3,468,000 Ivlinneapolis 4 827 000 400 000 146,000 283,000 137,000 4,564,000 Kansas City 8,559,500 150,000 66,000 3,336,000 3,270,000 8,343,500 Dallas 8,853,500 10,000 ""sso," 666" 305,000 1,122,000 ""817," 666"' 8,810,500 San Francisco 9,590,000 150,000 74,000 483,000 409,000 9,849,000 Total 102,580,000 1,170,000 1,100,000 4,104,000 4,104,000 6,011,000 66,682,000 66,682,000 6,011,000 102,510,000 Gold. Transfers. Settlement of June 22, 1916. June 22, Balance Federal Reserve last state- 19 a 1 n 6 c , e b i a n l- Bank of— m 1 e 5 n , t, 1 9 J 1 u 6 n . e d W ra i w th n - . Deposited. Debit. Credit. de N b e it t s. d T e o b t i a ts l . c T re o d t i a t l s. cr N ed e i t ts. fu cl n e d a ri a n f g te . r Boston %U, 216,000 $9,665,000 i «9.879.000 $214,000 $14,430,000 New York 3,678,000 $1,550,000 $2,273,000 18,041,000 15,768,000 2,955,000 Philadelphia 12,424,000 35,000 10,445,000 11,153,000 708,000 13,167,000 Cleveland 11, 731,000 1500,000 1,677,000 1,748,000 71,000 11,302,000 Richmond 13, 731,000 """i36o,"666" 7, 716,000 8,118,000 402,000 14,493,000 Atlanta 4,880,000 1,841,000 2,353,000 512,000 5,392,000 Chicago 6,815,000 1,500,000 1,000,000 433,000 | 1,186,000 11,290,000 8,104,000 4,562,000 St. Louis 3,468,000 "%lbb,bbb' 310 000 ! 5,907,000 8,723,000 2,816,000 6,494,000 Minneapolis 4,564,000 1,000,000 313,000 73,000 450,000 377,000 5,628,000 Kansas City 8,343,500 30,000 133,000 3j 261,000 3,128,000 8,180,500 Dallas 8,810,500 600,000 515,000 459,000 718,000 259,000 9,154,500 San Francisco 9,849,000 70 000 95,000 328,000 233,000 10,152,000 Total 102,510,000 130,000 3,530,000 2,328,000 2,328,000 5,592,000 70,470,000 70,470,000 5,592,000 105,910,000 Federal Reserve Agents' Fund—Summary of transactions, May 26, 1916, to June 22, 1916. Week ending June 8, Week ending June 1,1916. 1916i May 25, Federal Reserve Agent at— 1916, balance. d W ra i w th n - . Deposited. Balance. d W ra i w th n - . Balance. Philadelphia $2,770,000 $170,000 $2,600,000 $2,600,000 Richmond 5,200,000 5 200 000 5.200,000 Atlanta . 13,450,000 13,450,000 13,450,000 Chicago 3,310,000 3,310,000 3,310,000 St. Louis " 3,750,000 3,750,000 "$166/666" 3.650,000 Minneapolis 2 350 000 2,350,000 2,350,000 Kansas Citj7 . .. 3 700,000 3,700,000 3,700,000 Dallas 1,480,000 100,000 1,380,000 100,000 1,280,000 San Francisco 11,560,000 2,800,000 $760,000 9,520,000 9,520,000 Total 47,570,000 3,070,000 760,000 45,260,000 200,000 45,060,000 Week ending June 15,1916. Week en 1 d 9 i 1 n 6 g . June 22, Federal Reserve Agent at— With- Withdrawn. Deposited. Balance. drawn. Balance. Philadelphia $200,000 $1,010,000 $3,410,000 $3,410,000 Richmond 100,000 5,100,000 ""$i66,'666" 5,000,000 Atlanta . 13 450 000 13,450,000 Chicago . . 3,310,000 3,310,000 St. Louis 3,650,000 3,650,000 M Ka in n n sa e s a p C o i l t i y s 3 2 , , 7 3 0 5 0 0 , , 0 0 0 0 0 0 "i}bbb"3QQQ 3 1 , , 7 3 0 5 0 0 , , 0 00 00 0 Dallas 1,280,000 650,000 630,000 San Francisco 9,520,000 170,000 9,350,000 Total 300,000 1,010,000 45,770,000 1,920,000 43,850,000 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

JULY 1, 1916. FEDERAL RESERVE BULLETIN. 323 Amendments to Federal Reserve Act farm land situated within its Federal Reserve district, or within a radius of 100 miles from In submitting its annual report to Congress the place in which such bank is located, irreon February 1,1916, the Federal Reserve Board spective of district lines. It also recommends that the powers of national banks be further made the following recommendations for extended to permit any such bank to make amendments to the Federal Reserve Act: loans on any improved and unencumbered real (1) In addition to powers now possessed in estate located within 100 miles of the place in this connection by Federal Reserve Banks and which such bank is located, irrespective of national banks, the latter should be permitted district lines; provided, however, that the agto subscribe for and hold stock in banks or- gregate of farm-land loans and other real estate ganized for the special purpose of doing a bank- loans made by any national bank shall not ing business in foreign countries. exceed 25 per cent of its capital and surplus or (2) With the approval of the Federal Reserve one-third of its time deposits: and provided Board the issue of Federal Reserve notes to further,, that no such real estate loan, as dis- Federal Reserve Banks should be permitted tinguished from a farm-land loan, shall exceed either against the deposit of an equal amount; a period of one year nor exceed 50 per cent of face value, of notes, drafts, bills of exchange, the actual value of the property offered as and bankers7 acceptances acquired by Federal security. Reserve Banks under sections 13 and 14 of the It is believed that the enactment of these Act, or of gold, or of both, provided, however, amendments will, besides enlarging the useful™ that gold so deposited with a Federal Reserve .ness of the national banks, result in greatly Agent shall count as part of the reserve re- strengthening the operation of the Federal quired by the Act to be maintained by the Reserve Act, and more completely realize the bank against such notes outstanding. purposes of its framers. The text of the (3) The acceptance system, provision for amendments designed to carry out these which is made in foreign-trade operations by recommendations will be submitted by the the Federal Reserve Act, should De extended Board at an early date. The Board has under to the domestic trade in so far as relates to consideration other suggestions for amendments documentary acceptances secured by shipping to the Federal Reserve Act concerning which documents or warehouse receipts, covering no conclusions have yet been reached, and readily marketable commodities or against the regarding which the Board will take occasion pledge of goods actually sold. to submit its views to the Congress at an appro- There can be but little question of the safety priate time in the future. of such acceptances, and their use will tend to There have been sent to Congress amendequalize interest rates the country over and ments carrying out the recommendations, and_ help to broaden the discount market. these amendments are now pending either in (4) Permission should be granted to national banks to establish branch offices within the committee or before one of the two Houses of city or within the county in which they are Congress For the information of those who located. are .interested in them they are given below, (5) In order to enable member banks to the new matter being printed in italics. obtain prompt and economical accommodations for periods not to exceed 15 days, the DOMESTIC ACCEPTANCES, AND OTHER MATTERS. Federal Reserve Banks should be permitted to Be it enacted by the Senate and Souse of Representatives of make advances to member banks against their the United States of America in Congress qssembled, That promissory notes secured by such notes, drafts, section thirteen of the Act approved December twentybills of exchange, and bankers' acceptances as third, nineteen hundred and thirteen, known as the the law at present permits to be rediscounted Federal Reserve Act, be amended to read as follows: or purchased; or against the deposit or pledge "Any Federal reserve bank may receive from any of its of United States Government bonds, the pur- member banks, and from the United States, deposits of chase of which is now permitted under the law. current funds in lawful money, national-bank notes, Fed- (6) The Board, furthermore, recommends eral reserve notes, or checks, and drafts ^jpea-eeiveafc that the power of national banks to make yy ppayy able uppo n pp,r esentation, andf also, for loans on farm lands as provided in section 24 collection, maturing bills; or sollle ly ff or purposes off exbe extended so as to permit any national bank change or of collection p^fpeseej may receive from other not situated in a central reserve city to make Federal reserve banks deposits of current funds in lawful loans secured by improved and unencumbered money, national-bank notes, or checks afidr-fefcfts upon Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

324 FEDERAL RESERVE BULLETIN. JULY 1, 1916. e¥ other Federal reserve banks, and checks of discount of not more than three months' sight, exclusive of and drafts, payable upon presentation within its district, and days of grace, and which are indorsed by at least one member maturing hills payable within its district. bank. '•'Upon the indorsement of any of its member banks? "Any member bank may accept drafts or bills of exchange drawn upon it aad-gfewiag-ett^-el-^fftRSSfcefeieeB-ffl-fej any Federal reserve bank may discount notes, drafts, and bills of exchange arising out of actual com- not more than six months' sight to run, exclusive of days of mercial transactions: that is, notes, drafts, and bills of ex- grace, which grow out of transactions involving the importachange issued or drawn for agricultural, industrial, or com- tion or exportation of goods; or which grow out of transacmercial purposes, or the proceeds of which have been tions involving the domestic shipment of goods, provided used, or are to be used, for such purposes, the Federal Re- shipping documents are attached at the time of acceptance; or serve Board to have the right to determine or define the which are secured at the time of acceptance by a vjarehouse recharacter of the paper thus eligible for discount, within the ceipt or other such document affording security title covering meaning of this act. .Nothing in this act contained shall readily marketable staples, or by ihe pledge of goods actually be construed to prohibit such notes, drafts, and bills of sold. No member bank shall accept, whether in a foreign or exchange, secured by staple agricultural products, or other domestic transaction, for any one person, company, firm, or goods, wares, or merchandise from being eligible for such corporation to an amount equal at any lime in the aggregate discount; but such definition shall not include notes, to more- than ten per centum of its paid-up and unimpaired drafts, or bills covering merely investments or issued or capital stock and surplus unless the bank is secured either by drawn for the purpose of carrying or trading in stocks, attached documents or by some other actual security growing bonds, or other investment securities, except bonds and j out of the same transaction as the acceptance and fe&B no bank notes of the Government of the United States. Notes, shall accept such bills to an amount equal at any time in drafts, and bills admitted to discount under the terms of the aggregate to more than one-half of its paid-up and unthis paragraph must have a maturity at the time of dis- impaired capital stock and surplus, except by authority count of not more than ninety days-: , exclusive of days of of the Federal Reserve Board, under such general regulafivace. tions as said board may prescribe, but not to exceed the "Provided, That notes, drafts, and bills drawn or issued capital stock and surplus of such bank, and such regulafor agricultural purposes or based on live stock and having tions' shall apply to all banks alike regardless of the amount a maturity not exceeding six months, exclusive of days of of capital stock and surplus. grace, may be discounted in an amount to be limited to a 11 Any Federal reserve bank may make advances to its mempercentage of the capital of the Federal reserve bank, to ber banks on their promissory notes for a period not exceeding be ascertained and fixed hv the Federal Keserve Board. fifteen days at rates to be established by such Federal reserve banks, subject to the review and determination of the Federal Reserve Board,, provided such promissory notes are secured by such notes, drafts, bills of exchange, or bankers' acceptances as ^ are eligible for rediscount or for purchase by Federal reserve ^^ banks under the provisions of this Act, or by the deposit or pledge of bonds or notes of the United States. "'Section fifty-two hundred and two of the Revised Statutes of the United States is hereby amended so as to read as follows: No national banking association shall at any time be indebted, or in any way liable, to an amount exceeding the amount of its capital stock at such time "The aggregate of such notes, drafts, and bills bearing actually paid in and remaining undiminished by losses the signature or indorsement of any one borrower, whether or otherwise, except on account of demands of the nature a person, company, firm, or corporation rediscounted for following: any one bank shall at no time exceed ten per centum of "First. Notes of circulation. the unimpaired capital and surplus of said bank* fe«t4Ms "Second. Moneys deposited with or collected by the ¥este4etiea~s]3:all~»^^ association. ebaage—&?awft—ia— I i Third. Bills of exchange or drafts drawn against money ¥al«ee: Provided, however, That this restriction shall not actually on deposit to the credit of the association, or due apply to the discount of bills of exchange drawn in good faith thereto. against actually existing values nor to commercial or business "Fourth. Liabilities to the stockholders of the associapaper which represents an actual debt for goods sold and which tion for dividends and reserve profits. is owned by the person, firm, or corporation discounting it "Fifth. Liabilities incurred under the provisions of the •with such member bank. Federal Reserve Act. ' i Any Federal reserve bank may discount acceptances of the I1 The discount and rediscount and the purchase and sale hinds hereinafter described, which have a maturity at the time by any Federal reserve bank of any bills receivable and Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

JULY 1, 1916. FEDERAL RESERVE BULLETIN. 325 of domestic and foreign bills of exchange, and of accept- issued through one Federal reserve bank shall be received ances authorized, by this Act, shall be subject to such by another Federal reserve bank they shall be promptly restrictions, limitations, and regulations as may be im- returned for credit or redemption to the Federal reserve posed by the Federal Reserve Board." bank through which they were originally issued, or, upon Any member' han't may accept drafts or bills of exchange direction of such Federal reserve bank, they shall be forwarded drawn upon it having not more than three months' sight to direct to the Treasurer of the United States to be retired. No run, exclusive of days of grace, drawn under regulations to be Federal reserve bank shall pay out notes issued through prescribed by the Federal Reserve Board by banks or bankers another under penalty of a tax of ten per centum upon the in foreign countries or dependencies or insular possessions of face value of notes so paid out. Notes presented for the United States for the purpose of furnishing dollar exchange redemption at the Treasury of the United States shall be as required by the usages of trade in the respective countries, paid out of the redemption fund and returned to the Feddependencies, or insular possessions. And such drafts or eral reserve banks through which they were originally bills may be acquired by Federal reserve banks in such amounts issued, and thereupon such Federal reserve bank shall, and subject to such regulations, restrictions, and limitations upon demand of the Secretary of the Treasury, reimburse as may be prescribed by the Federal Reserve Board. such redemption fund in lawful money, or, if such Federal reserve notes have been redeemed by the Treasurer in gold FEDERAL RESERVE NOTES. or gold certificates, then such funds shall be reimbursed to That section sixteen, paragraphs two, three, four, five, the extent deemed necessary by the Secretary of the six, and seven of the Act approved December- twenty- Treasury in gold or gold, certificates, and such Federal third, nineteen-hundred and thirteen, known as the Fed- reserve bank shall, so long as any of its Federal reserve eral Reserve Act, be amended and reenacted so as to read notes remain outstanding, maintain with the Treasurer in as follows: gold an amount sufficient in 'the judgment of the Secretary "Any Federal reserve bank may make application to the to provide for ail redemptions to be made by the Treasurer. local Federal reserve agent for such amount of the Federal Federal reserve notes received by the Treasurer, otherwise reserve notes hereinbefore provided for as it may require. than for redemption, may be exchanged for gold out of the Such application'shall be accompanied with a tender to the redemption fund hereinafter provided and returned to the local Federal reserve agent of collateral in amount equal to reserve bank through which they were originally issued, or the sum of the Federal reserve notes thus applied for and they may be returned to such bank for the credit of the issued pursuant to such application. The collateral United States. Federal reserve notes unfit for circulation security thus offered shall be notes, drafts, bills of exchange, shall be returned by the Federal reserve agents to the or acceptances aeee^te4-lep-Fe4isee«fit rediscounted underComptroller of the Currency for cancellation and destructhe provisions of section thirteen of this Act, or bills of tion. exchange indorsed by a member- bank of any Federal reserve "The Federal Reserve Board shall require each. Federal district and purchased under the provisions of section fourteen reserve bank to maintain on deposit in the Treasury of the of this Act, or hankers' acceptances purchased under the pro- United States a sum in gold sufficient, in the judgment of visions of said section fourteen, or gold or gold certificates. Secretary of the Treasury, for the redemption of the Fedastd The Federal reserve agent shall each day notify the eral reserve notes issued to such bank, but in no event less Federal Reserve Board of all issues and withdrawals of than five per centum of the total amount of notes issued less Federal reserve notes to and by the Federal reserve bank the amount of gold or gold certificates held by the Federal to which he is accredited. The said Federal Reserve reserve agent as collateral security; but such deposit of gold Board may at any time call upon a Federal reserve bank shall be counted and included as part of the forty per for additional security to protect the Federal reserve notes centum reserve hereinbefore required and shall be counted issued to it. and considered as if collateral security deposited with the "Every Federal reserve bank shall maintain reserves in Federal reserve agdnt. The board shall have the right, gold or lawful money of not less than thirty-five per centum acting through the Federal reserve agent, to grant, in against its deposits and reserves in gold of not less than whole or in part or to reject entirely, the application of forty per centum against, its Federal reserve notes in actual any Federal reserve bank for Federal reserve notes; but circulation: Provided, however, Thai ivhen the Federal re- to the extent that such application may be granted the serve agent holds gold or gold certificates as collateral for Fed- Federal Reserve Board shall, through its local Federal eral reserve notes issued to the bank the reserve that such bank is reserve agent, supply Federal reserve notes to the bank required to maintain against its Federal reserve notes in actual so applying, and such bank shall be charged with the circulation shall be reduced in a corresponding amount, 4 amount of such notes issued to it and shall pay such rate of interest oB-said-ameft&fc as may be established hy the ai-fteseFPe-agefifc- Notes so paid out shall bear upon Federal Reserve Board aa4-4ke-aBaeeefc-ef on only that their faces a distinctive letter and serial number, which amount of such notes which equals the total amount of its shall be assigned by the Federal Reserve Board to each outstanding Federal reserve notes less the amount of gold or Federal reserve bank. Whenever Federal reserve notes gold certificates held by the Federal reserve agent as collateral Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

326 FEDERAL RESERVE BULLETIN. JULY 1, 1916. security. Federal reserve notes as issued to any such bank lines; but no meh loan made upon the security of such farm shall, upon delivery, together with such notes of such land shall be made for a longer time than five years, and Federal reserve bank as may be issued under section no loan made upon the security of such real estate as distineighteen of this Act upon, security of United States two guished from farm land shall be made for a longer time than per centum Government bonds, become a first and para- one year nor fe^-as shall the amount of any such loan, mount lien on all the assets of such bank. whether upon such, farm land or upon such real estate, exeeedifig exceed fifty per centum of the actual value of the property offered as security. Any such bank may make such loans, whether secured by such farm land or such real estate, in an aggregate sum equal to twenty-five per centum of its capital and surplus or to one-third of its time deposits and such banks may continue hereafter as heretofore to receive time deposits and to pay interest on the same. "The Federal Reserve Board shall have power from time to time to add to the list of cities in which national banks shall not be permitted to make loans secured upon real estate in the manner described in this section." "Upon the request of the Secretary of the Treasury the Federal Reserve Board shall require the Federal reserve BANKING CORPORATIONS AUTHORIZED TO DO FOREIGN agent to transmit ee-Bittefe-e^fee-paM-geM- to the Treasurer BANKING BUSINESS. of the United States so much of the gold held by him as col- That section twenty-Jive of the Act approved December lateral security for Federal reserve notes as may be requiredtwenty-third, nineteen hundred and thirteen, known as the for the exclusive purpose of the redemption of saeferHetes Federal Reserve Act, be amended to read as follows: Federal reserve notes. "Sec. 25. Any national banking association possessing a "Any Federal reserve bank may at its discretion with- capital and surplus of $1,000,000 or more may file applicadraw collateral deposited with the local Federal reserve tion with the Federal Reserve Board for permission to exercise, agent for the protection of its Federal reserve notes upon such conditions and under such regulations as may be ^e-peeited-wi^fe-i-o issued to it, and shall at the same time prescribed by the said board, either or both of the following substitute therefor other like collateral of equal amount powers: with the approval of the Federal reserve agent under regu- "First. To establish branches in foreign countries or delations to be prescribed by the Federal Reserve Board. pendencies or insular possessions of the United States for the Any Federal reserve bank may retire any of its Federal reserfvuertherance of the foreign commerce of the United States, and notes by depositing them with the Federal reserve agent or to act if required to do so as fiscal agents of the United States. with the Treasurer of the United States, and such Federal icSecond. To invest an amount not exceeding in the aggrereserve bank shall thereupon be entitled to receive bach thegate ten per centum of its paid-in capital stock and surplus in collateral deposited with the Federal reserve agent for the the stock of one or more banks or corporations chartered or insecurity of such notes. Federal reserve banks shall not be corporated under the laws of the United States or of any State required to maintain the reserve or the redemption fund here-thereof, and principally engaged in international or foreign tofore provided for against Federal reserve* notes which havbeanking, or banking in a dependency or insular possession of been retired; nor shall they be further liable to pay any in-the United States either directly or through the agency, ownerterest charge which may have been imposed thereon by the ship, or control of local institutions in foreign countries, or in Federal Reserve Board. Federal reserve notes so depositedsuch dependencies or insular possessions. shall not be reissued except upon compliance vAih the con- "Such application shall specify the name and capital of the ditions of an original issue" banking association filing it, the powers applied for, and the place or places where the banking operations proposed are to LOANS ON REAL ESTATE. be carried on. The Federal Reserve Board shall have power to That section twenty-four of the Act approved December approve or to reject such application in whole or in part if for twenty-third, nineteen hundred and thirteen, known as any reason the granting of such application is deemed inexthe Federal Reserve Act, be amended to read as follows: pedient, and shall also have power from time to time to increase "Any national banking association not situated in a or decrease the number of places where such banking operations central reserve city may make loans secured by improved may be carried on. and unencumbered farm land situated within its Federal "Every national banking association operating foreign reserve district or within a radius of one hundred miles of branches shall be required to furnish information concerning the place in 'which such bank is located, irrespective of distritchte condition of such branches to the Comptroller of the Curlines-, and may also make loans secured by improved and unenre-ncy upon demand, and every member bank investing in the cumbered real estate located within one hundred miles of the capital stock of banks or corporations described under subparaplace in which such bank is located, irrespective of districtgraph two of the first paragraph of this section shall be required Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

JULY 1, 1916. FEDERAL RESERVE BULLETIN. 827 to furnish information concerning the condition of such banks under such rules and regulations as such board may prescribe, or corporations to the Federal Reserve Board upon demand, establish branches within the limits of the county in which it and the Federal Reserve Board may order special examinations is located or within a radius of twenty-five miles of the place of the said branches, banks, or corporations at such time or in ivhich such bank is situated, irrespective of county lines: times as it may deem best. Provided, That no such branch shall be established outside of li Before any national bank shall be permitted to purchase its State or of its Federal reserve district, nor shall such branch stock in any such corporation the said corporation shall enter be established unless the capital of the parent bank is at least into an agreement or undertaking -with the Federal Reserve equal to the aggregate of the amounts ivhich would be required Board to restrict its operations or conduct its business in of each branch under the provisions of section fifty-one hunsuch manner or under such limitations and restrictions as dred and thirty-eight, Revised Statutes, if it were organized as the said board may prescribe for the place or places wherein an independent association, together with the amount required such business is to be conducted. If at any time the Federal of the parent bank itself by that section." Reserve Board shall ascertain that the regulations prescribed SECTION 11. by it are not being complied with, said board shall be authorized and shall have power to institute an investigation of the matter Amend section 11 by adding a clause "m" as follows: and to send for persons and papers, subpoena witnesses, and (m) Upon the affirmative vote of not less than five of its administer oaths in order to satisfy itself as to the actual members, the Fedeal Reserve Board shall have poiver, from nature of the transactions referred to. Should such inves- time to time, by general ruling, covering all districts alike, tigation result in establishing the failure of the corporation to permit member banks— in question, or of the national bank or banks which may /. To carry in the Federal reserve banks of their respective be stockholders therein, to comply with the regulations laid districts any portion of their reserves now required by section down by the said Federal Reserve Board, such national banks 19 of this Act to be held in their own vaults. may be required to dispose of stock holdings in the said cor- 2. To count as part of their lawful reserves Federal reserve poration upon thirty days' notice, and in the event of their notes of their own district not exceeding in the aggregate an noncompliance with such order the Federal Reserve Board amount equal to five per centum of their net demand deposits. may direct the Comptroller of the Currency to institute proceedings for forfeiture of charter. Commercial Failures in .May. u Every such national banking association shall conduct the accounts of each foreign branch independently of the accounts Commercial failures in Federal Reserve disof other foreign branches established by it and of its home tricts during the month of May, as compiled office, and shall at the end of each fiscal period transfer to its by R. G. Dun & Co. for the Federal Reserve general ledger the profit or loss accruing at each branch as a separate item. Bulletin, are considerably less in number and "Any director or other officer, agent, or employee of any in the liabilities represented than those for the member bank may, with the approval of the Federal Reserve corresponding month in 1915, but greater in Board, be a director or other officer, agent, or employee of any number than the May failures in 1913 and such bank or corporation above mentioned in the capital stock 1914. They are, however, not so large in of which such member bank shall have invested as hereinbefore provided, 'without being subject to the provisions of liabilities as in 1914. The total failures in section eight of the Act. approved October fifteenth, nineteen May, 1916, were 1,482 and the liabilities hundred and fourteen, entitled i;An Act to supplement exist-' represented were $19,466,436; ing laws against unlawful restraints and monopolies, and for other purposes.'" Number DOMESTIC BRANCHES. District. of Liabilities. failures. That the Act approved December twenty-third, nineteen hundred and thirteen, known as the Federal Reserve No. 1... 157 $1,239,043 No. 2.. 312 6,914,971 Act, be amended by adding a new section, as follows: No. 3... 73 716,787 uSec. 25c. That any national banking association located N N o o . . " 5 4 . . . . . . 9 7 8 9 7 78 3 3 6 , , 4 1 8 9 0 5 in a city or incorporated town or village of more than one hun- No. 6... 115 3,947,950 No. 7... 220 1,882,586 dred thousand inhabitants and possessing a capital and surplus No.8... 98 763,712 No. 9... 38 258,850 of $1,000,000 or more may, under such rules and regulations No. 10.. 68 519,774 as the Federal Reserve Board may prescribe, establish branches No. 11.. 81 707,572 No. 12.. 143 995,516 within the corporate limits of the city, town, or village in Total 1916.. 1,482 19,466,436 ivhich it is located. 1915.. 1,707 21,053,212 " Any notional banking association located in any other 1914.. 1,221 23,447,496 1913.. 1,246 16,863,804 place may, with the approval of the Federal Reserve Board, and Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

328 FEDERAL RESERVE BULLETIN. JULY 1, 1916. Fiduciary Powers. DISTRICT NO. 10. Trustee, executor, administrator, and registrar of stocks Applications from the following banks for and bonds: permission to act under section il(k) of the First National Bank, Denver, Colo. Federal Reserve Act have been approved by the Board since the issue of the June Bulletin, DISTRICT NO. 12. as follows: Trustee, executor, administrator, and registrar of stocks DISTRICT NO. 1. and bonds: Trustee, executor, administrator, and registrar of stocks First National Bank, Corvallis, Oreg. and bonds: Beverly National Bank, Beverly, Mass. DISTRICT No. 2. Full Acceptance Powers Granted. Trustee, executor, and administrator: Atlantic Highlands National Bank, Atlantic High- The American National Bank, San Franlands, N. J. cisco, CaL, the Chemical National Bank, New DISTRICT NO. 3. York City, and the Chase National Bank, Trustee, executor, administrator, and registrar of stocks New York Ciij have recently been granted ? and bonds: authority by the Federal Reserve Board to First National Bank, Nanticoke, Pa. accept drafts or bills of exchange up to 100 per DISTRICT No. 6. cent of their capital and surplus under the Trustee, executor4, administrator, and registrar of stocks Federal Reserve Act. and bonds: All member banks may, without special Calcasieu National Bank of Southwest Louisiana, permission, accept to 50 per cent of their capital Lake Charles, La. Tennessee-Hermitage National Bank, Nashville, Tenn. and surplus. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

CHART ILLUSTRATING THE TOTAL INDIVIDUAL DEPOSITS AND THE TOTAL INDIVIDUAL PLUS BANK DEPOSITS OF NATIONAL BANKS, GIVEN BY GROUPS, TAKEN FROM THE VARIOUS CALLS OF THE COMP- TROLLER OF THE CURRENCY, JUNE 30, 1914, TO MARCH 7, 1916, INCLUSIVE. [The top line, or edge, in each of the four curves indicates Individual deposits plus Bank deposits; while the lower iine or edge, indicates Individual deposits only—hence $ the shaded portion represents, by its thickness, the volume of Bank deposits.] Millions I of Dollars 4,600- I I 4,400 / / i J 4,200 r-j —, J / k o —. r-i to ca •O- H C» O rH fH rH to o rH o C rH \2 r to H t r o H •eft • rHi i C t I o I O I'H ca m o r m H tSS— C rH O C- 1-ir— # ^5 OrirH • S t J • . C > O > 7 a J V 3 > P f |> i - ) >-3 CO o o u 0> 38 55 i-a CO w a) o o Q a> a c j a cc J ** P ? 11° Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

JULX 1,1916. FEDERAL RESERVE BULLETIN. 329 INFORMAL RULINGS OF THE BOARD. Below are reproduced letters sent out from "Can a person be a director and officer of a time to time over the signatures of the officers New Jersey trust company with a capital of of the Federal Reserve Board which contain $1,000,000 and total resources over $5,000,000 information believed to be of general interest in a city of over 200,000 inhabitants and at the to Federal Reserve Banks and member banks same time serve as a director and officer of a of the system: national bank having a capital of $50,000, total resources of under $2,000,000, in a munici- National Banks and Cattle Paper. pality of less than 20,000 inhabitants?" It is presumed that the trust company is not In reply to your recent letter, you aro advised a member of the Federal Reserve system. that the ruling concerning cattle paper printed In reply you are advised that under the proon page 65 of the February Bulletin relates to visions of the Clayton Antitrust Act a person the right of a Federal Reserve Bank to purchase can not serve at the same time as a director domestic bankers' acceptances secured by a of a national bank and a trust company under chattel mortgage on cattle. the circumstances recited, but the Act does not National banks have no authority in law to prohibit his serving at the same time as a accept domestic drafts of any kind, so the above director and officer in one and as an officer in ruling has no application to such banks or to the other. their right to loan on cattle. Your attention is also called to the fact that In any event, the ruling should not be conunder the Kern amendment to the Clayton Act, strued to affect the provisions of section 5200, approved May 15, 1916, a person having first Revised Statutes, which limits the amount obtained the consent of the Federal Reserve which a national bank may loan to any one Board, might serve at the same time as a borrower to 10 per cent of its capital and director in both of the above-mentioned insurplus. The fact that a note or draft disstitutions, provided the trust company is not counted by a national bank may be secured by in substantial competition with the member cattle would not of itself bring it within the bank. exceptions to section 5200, unless it is com- JUNE 8, 1916. mercial or business paper actually owned by the person negotiating the same, or unless it is Circulars and Regulations for 1916. a bill of exchange drawn in good faith against actually, existing values. Your letter of June 21st is received and I am directed by the Board to say to you that it MAY 26, 1916. has delayed the issuance of its circulars and regulations for 1916 in the hope that there may be incorporated in them any changes Clayton Act. made necessary by the passage of amend- There has been referred to this office for ments to the Federal Reserve Act, submitted attention your letter of May 31, addressed to by the Board and now pending before the Comptroller, of the Currency and sub- Congress. mitting the following question: JUNE 23, 1916. 46718—16 4 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

330 FEDERAL RESERVE BULLETIN"; JULY 1, 1916. LAW DEPARTMENT. The following opinions of counsel have been year notes as the Secretary may tender to authorized for publication by the Board since such bank in the first instance in exchange for the 2 per cent United States gold bonds; said the last edition of the Bulletin: obligation to purchase at maturity such notes shall continue in force for a period not to One-Year Gold Notes. exceed 30 years. The obligation of a Federal Reserve Bank to renew It will be observed that as a condition of the one-year gold notes which it has received in exchange for United States 2 per cent bonds cannot be transferred issue of such notes the Secretary must require to another Federal Reserve Bank. The obligation to the Federal Reserve Bank to enter into an renew is binding upon the original bank, at the option of obligation binding itself to purchase from the the Secretary of the Treasury, for a period not to exceed United States at the maturity of such one-year 30 years, though such bank may enter into a contract notes an amount equal to those delivered in with another corproration or individual to buy such renewal notes from it when issued. Nothing in the Act exchange for such bonds, if so requested by prevents the sale of one-year notes to a purchaser, who will the Secretary. This agreement is a collateral be entitled to receive payment from the Government at agreement entered into as between the Secmaturity. retary of the Treasury and the Federal Reserve MARCH 10, 1918. Bank. It is not a part of the contract con- SIR: This office has been requested to give tained in the note itself. The Federal Reserve an opinion on the question of whether or not Bank procuring such notes may dispose of the Secretary of the Treasury can by agreethem as it sees fit, and any purchaser would ment relieve a Federal- Reserve Bank from its hold them free from any equities or obligations obligations to renew one-year gold notes of that may exist as between the Federal Reserve the United States, issued in exchange for 2 Bank and the Secretary of the Treasury. per cent bonds bearing the circulation privi- While the purchaser may agree either at the lege, and can accept in lieu thereof the oblitime of purchase or subsequent thereto to gation of another Federal Reserve Bank purchase from the Federal Reserve Bank any purchasing such notes from the bank to which notes which it may be required under its conthey were originally issued. tract to buy from the United States each suc- Section 18 of the Federal Reserve Act, ceeding year, this collateral agreement would after providing for the exchange by Federal be wholly independent of that entered into as Reserve Banks of United States 2 per cent between the Secretary of the Treasury and the bonds bearing the circulation privilege for Federal Reserve Bank at the time of' the exone-year gold notes of the United States and change of notes for bonds bearing the circu- 30-year 3 per cent bonds, provides— lation privilege. That at the time of such exchange the Fed- In other words, let us assume that a Federal eral Reserve Bank obtaining such one-year Reserve Bank procures one hundred $1,000 gold notes shall enter into an obligation with the Secretary of the Treasury binding itself notes in exchange for 2 per cent bonds. to purchase from the United States for gold at When these notes are delivered the bank is the maturity of such one-year notes an amount required to execute an agreement that at equal to those delivered in exchange for such maturity of such notes it will purchase an bonds, if so requested by the Secretary, and equal amount of new notes to be issued by the at each maturity of one-year notes so purchased by such Federal Reserve Bank to purchase Secretary. The bank, however, may dispose from the United States such an amount of one- of the whole or any part of such notes and the Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

JULY 1,1916. FEDERAL RESERVE BULLETIN. 331 holder may present them to the Treasurer for This section was amended by the Act of May payment at maturity. When the Treasurer Is 27, 1908, so as to provide that such deposits called upon to pay these notes the Secretary, may be made by any postmaster ""at his own in order to provide the necessary gold, calls risk and in his official capacity in any national upon the original Federal Reserve Bank to or State bank in the State where the said postpurchase new notes of a like amount, and while master resides/7 that bank may have a collateral8 agreement to It is evident, therefore, that under the prosell these notes to a third party this contract visions of section 3847, Revised Statutes, as would not in any way effect that entered into amended by the Act. of May 27, 1908, postmasbetween the Secretary and the Federal Re- ters were authorized to deposit public moneys serve Bank. at their own risk in State as well as national The statute, therefore, merely creates a fixed banks. market for these notes for a period of 30 Section 15 of the Federal Reserve Act proyears, and as a condition of their issue in the vides in part that— first instance the Secretary is required to pro- No public funds of the Philippine Islands, or cure this agreement from the Federal Reserve of the postal savings, or any Government funds Bank to which they are issued. As he could shall be deposited in the continental United States in any bank not belonging to the system not issue these notes without this contract established by this Act, it seems clear that he could not subsequently The Federal Reserve System was created waive its provisions and accept in lieu thereof after the passage of section 3847, Revised Statthe obligation of some other bank. utes, and the amendment of May 27, 1908. Respectfully, Under its terms both State and national banks M. C. ELLIOTT, Counsel, may become members of this system. The To Hon. CHARLES S. HAMLIN, manifest effect of section 15 of the Federal Re- Governor Federal Reserve Board. serve Act is to modify or further amend section 3847, Revised Statutes, by providing that those Deposit of Postal Funds in Nonmember Banks. State and national banks which become mem- Section 15 of the Federal Reserve Act, which, prohibits bers of the Federal Reserve System may still be the deposit of any Government funds in nonmember used as depositories of public funds by postbanks, operates as a repeal of so much of section 3847, masters. It is true that section 15 does not United States Revised Statutes, as amended by the Act refer in terms to section 3847, Revised Statof May 27, 1908, as authorizes postmasters to deposit public moneys in State as well as national banks. By an utes, but it deals with the same subject matter, act approved May 18,1916, postal saving deposits may un- namely, the deposit of public moneys or moneys der certain conditions be deposited in nonmember banks. belonging to the Government. While more JUNE 5, 1916. general in its terms in so far as it is inconsistent SIR: The attached letter submits to this with the previous acts of Congress, it operates office for an opinion the question whether a as a repeal. deposit of postal funds by a postmaster in The American and English Encyclopedia of nonmember banks constitutes a violation of Law, volume 26, page 723, in a discussion of the the provisions of section 15 of the Federal Re- various rules of statutory construction, states serve Act. that— Section 3847, Revised Statutes, authorizes If two statutes on the same subject are mutu- "any postmaster having public money belong- ally repugnant, the later act without any reing to the Government77 to deposit the same, pealing clause operates, in the absence of expressed intent to the contrary, as a repeal of under certain circumstances, "at his own risk the earlier one, on the obvious principle that and in his official capacity in any national bank the enactment of provisions inconsistent with in the town, city, or county where the said post- those previously existing manifests a clear master resides.77 intent to abolish the old law. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

332 FEDERAL RESERVE BULLETIN. JULY 2, 1916. See also Henderson's Tobacco Co. (11 Wall., Revised Statutes, are violated by the following 657). case: It would have been futile for Congress to at- aA national bank carries in its cash two tempt to repeal specifically every statute au- envelopes containing $20,000 in circulating thorizing any public officer to deposit Govern- notes of another national bank, which were ment funds in banks other than member banks received from a savings and trust company, when the same result could be reached very and are held under a verbal agreement whereby directly and very simply by the phrase actu- the same notes are to be returned to the savally employed by Congress. ings and trust company upon, demand. From In the opinion of this office, therefore, post- a memorandum on each envelope it appears masters are not authorized by law, since the that the national bank to which these notes passage of the Federal Reserve Act, to deposit were originally issued deposited them with the public moneys in a State bank which is not a savings and trust company and received a cermember of the Federal Reserve System. tificate of deposit for $20,000 under an agreement that the same notes were to be held by As postmasters discharge their duties under the savings and trust company and returned the supervision of the Postmaster General, it upon the surrender of the certificate of deposit." is respectfully suggested that the matter be brought to his attention in order that he may Section 5207, United States Revised Stattake such action as he may deem necessary in utes, provides— the premises to insure a compliance with the No association shall hereafter offer or receive acts of Congress on this subject. United States notes or national bank notes as security or as collateral security for any loan of This opinion is not intended to refer to postal money, or for a consideration agree to withsavings funds, which under certain specified hold the same from use, or offer or receive the conditions may be deposited in -nonmember custody or promise of custody of such notes as banks. See section 2 of the act approved May security, or as collateral security, or considera- 18, 1916, amending the Act authorizing the tion for any loan of money. Any association offending against the provisions of this section postal savings system. shall be deemed guilty of a misdemeanor and Respectfully, shall be fined not more than one thousand M. C. ELLIOTT, Counsel. dollars and a further sum equal to one-third of the money so loaned. The officer or officers To Hon. CHARLES S. HAMLIN, of any association who shall make any such Governor Federal Reserve Board. loan shall be liable for a further sum equal to one-quarter of the money loaned; and any fine or penalty incurred by a violation of this Withholding National Bank Notes from Circulation. section shall be recoverable for the benefit of the party bringing such suit. National banks are prohibited by section 5207, United States Revised Statutes, from offering or receiving national The facts, as stated, constitute an apparent banknotes as security for any loan of money or from agreeing violation of section 5207. for a consideration to withhold the same from circulation. Respectfully, JUNE 20, 1916. M. C. ELLIOTT, Counsel. SIR: I have your memorandum of June 13 To Hon. JOHN SKELTON WILLIAMS, asking whether the provisions of section 5207, Comptroller of the Currency. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

JULY 1,1916. FEDERAL RESERVE BULLETIN. 333 SUMMARY OF -BUSINESS IN THE UNITED STATES. District No. 1—Boston. Di N st e r w ic t Y N o o r . k 2 . —D 3 d i — s e tr l P p ic h h t i i l N a a , - o. District No. 4—Cleveland. Di R st i r c i h ct m N on o d . . 5— Dist A ri t c l t a n N ta o . . 6— General business Excellent, with some Quieter be- Very good. Continues good.. - „ Good Good; exception, signs of temporary tween sea- lumber. ||g -,-. slackening. sons. Crop C s o : ndition Satisfactorj7" Generally Fair Wheat and corn fair; tobacco Fair to good. Good?'- w. tif1 backward. and hemp good. Outlook Good Fine weather ....do.... Increase in " tobacco and Favorable Average crops. needed. hemp will offset poorer crops of grain. Industries of the dis- Busy catching up on Very busy. All working to capacity Active. All operating full trict. old contracts; new time. business not so pressing. Construction: Build- Highest for many Increasing Fairly ac- Improving 30 per cent over Normal to im- Fair. ing and engineer- years. tive'. same month last year. proving. ing. Warehouse building very good; home building backward. Foreign trade Exports and imports Great increase. Growing. Coal, large; tobac- Dull; accoun decreased from last co, fair. transportation. month, but show an increase over last year. •• Bank clearings Increase over last year; Large increase. Increasing. Averaging3 percent increase Increasedecrease from *last over" period last year and month. 5 per cent over last month. Money rates Increasing fractionally. Marked in- Very slight Slight hardening of rates; Easy; some hard- Normal. crease and increase. commercial paper about f ening tendency. firmness. per cent higher than last month. Railroad, post-office, Increased. Increasing Post-oflice receipts 17 per Above average Increasing. and other receipts. cent over last year, but 3 per cent less than last month. Labor conditions... Scarce.. More settled, Serious Improved over last month. Fully employed; Satisfactory. except on More wage advances. in demand. railroads. Outlook Good.. Satisfactory.. Good Nothing unfavorable to con- Promising Bright. tinuance of present conditions. Remarks Greater cau- Smaller manufacturers feel tion as to increased prices for raw future. material. District District No. 7— District No. 8— No. 9— District No. 10—Kansas District No. 11— District No. 12— Chicago. St. Louis. Minne- City. Dallas. San Francisco. apolis. General business Still brisk in most Active; funda- Good Good Satisfactory Better than norlines. mently mal. Crops: sound. ' Condition. Fair Good except Very good. Better than normal. Good Damaged in some wheat. sections. Outlook. Improving slightly... Satisfactory... ...do Bright .' Promising 75 to 90 Good. per cent normal. Industries of the dis- Active Prosperous; Fully em- Report fine; increase over Mining very actrict. capacity ployed. last year. tive; lumbering near maxi- above normal; mum. live stock good condition, prices above normal. Construction: Build- In manufacturing cen- Good.. Brisk. On the increase. Active, but small Increase 32 per ing and engineer- ters active. decrease over cent. ing. 1915. Foreign trade Normal Modera t e Good Increasing. (flour a nd wheat). Bank clearings Chicago, decrease; Increase.. Increased. Increase Increase over 15 Increase 31 per country, increase. per cent. cent. Money rates Increasing slightly... Discount rates No change. Unchanged, but increase Steady; no mate- Slight increaase. s t a t ionary, predicted. rial change. c ommercial a p e r Railroad, post office, Increase.. Larger Considerably increased over Railroad receipts, Increasing. and other receipts. last year. freight, 12 per cent increase; passenger, 50 per cent increase. Labor conditions Good... Satisfactory... Fair Unsettled. Very satisfactory- All available labor skilled and un- employed. Unskill well em- settled. ployed. Outlook.. Satisfactory Promising Good Bright Good Promising. Remarks. Business conditions District is General conditions are most Satisfactory conactive. No falling prosper- satisfactory. dition exists exoff. ous with cept in southgood west and exoutlook. treme west Texas. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

334 FEDERAL RESERVE BULLETIN". JULY 1, 1916. GENERAL BUSINESS CONDITIONS. There is given on the preceding page a sum- hay, grain, and potatoes. Tobacco and a few mary of business conditions in the United States other specialties are reported backward for this by Federal Reserve districts. The reports are time of year, but it is thought that with favorable furnished by the Federal Reserve Agents, who weather they will probably produce an average are the chairmen of the boards of directors for crop. the several districts. Below are the detailed The labor situation is the cause of some unreports as of approximately June 23: easiness and on the whole is unsatisfactory from the employer's standpoint. Reports from DISTRICT NO. 1—BOSTON. all the industrial centers indicate that labor, Exceptionally heavy buying in the late win- both skilled and unskilled, is scarce and in ter and spring has filled the manufacturer's some places production is being restricted by books with advance orders on which deliveries inability to secure help. Wages are univerwill not be completed for some months. Buyers sally higher than for a long time, if not higher urged on by rapidly rising prices, it would seem, than ever before. have placed orders further ahead than ever be- Money has shown a tendency to strengthen fore. Naturally a situation of this sort could the last week or two, and rates have advanced not continue indefinitely, and reports coming to fractionally. Call money, 3§ per cent; comus now indicate much saner purchasing and mercial paper, 3| to 4 per cent for six months, selling. 4 to 4J per cent for a year; town notes, fall It appears that the district is at present in •maturities, 3 to 3J per cent, spring maturities, what might be termed a digestive period. It is 3J to 3J per cent; 90-day bankers' acceptances, now between seasons in many lines. The 2\ per cent upward. spring buying in general is over and it is too Loans and discounts of the Boston clearingearly to place fall orders. The late spring house banks on June .17, 1916, show an inand inclement weather has retarded retail crease of $11,388,000 over the preceding month, business and this, too, has reacted to some while, demand deposits have increased extent on manufacturers, who are glad of this $2,773,000 during the same period. The opportunity to catch up and get their orders amount due to banks on June 17 was $135,and output nearer together. 521,000, as compared with $139,631,000 -on The increased cost of labor and the necessity May 20. The excess reserve of these banks has of carrying on hand a large stock of raw mate- decreased from $47,944,000 on May 20 to rial, purchased at high prices to cover advance $33,769,000 on June 17, as compared with a orders, is requiring the use of more working maximum excess of $81,597,000 on October 23, capital than manufacturers are accustomed to 1915. carry. In some cases this has necessitated Exchanges of the Boston clearing house for asking for longer credit on purchases of raw the week ending June 17, 1916, were $180,740,material. In retail lines, however, collections 253, as compared with $147,636,130 for the corare reported to be good. responding week last year and $210,413,870 for The crop outlook in this district, for the most the week ending April 15,1916. part, is satisfactory. Reports from different Building and engineering operations in New parts of New England indicate that most of England from January 1, 1916, to June 14, the crops are making good progress, especially 1916, were $93,249,000, or $15,263,000 over the Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

JULY 1, 191G. FEDERAL RESERVE BULLETIN". 335 same period last year. This is the highest last month still continues, but many mills are amount reached for a similar period for over 15 sold up to late in the fall, and consequently years and is about $5,000,000 over the highest the lack of new buying is causing no uneasipoint previously recorded, ness. Buyers are not interested in making Exports from the port of Boston for May, additional purchases at the present time, and 1916, amounted to $11,255,012, as compared manufacturers feel that it would be a useless with $16,496,726 for April, 1916, and $12,- sacrifice to reduce prices now. Mills are sold 662,120 for May, 1915. Imports for May, so far ahead that manufacturers think there 1916, were $19,555,149, a decrease of $4,128,- will be a revival of buying -before they catch 102 from April, 1916, and an increase of up with their present orders. $2,526,258 over May, 1915. The dry goods business, 'both wholesale and Receipts of the Boston post office for May, retail, is better than at this time last year, but 1915, show an increase of $88,000, or about the backward spring and wet weather has 13J per cent, over May, 1914, and receipts for caused sales to be smaller than anticipated. the first 15 days of June were $51,000, or 14£ The bond market is quiet and there is less per cent, over the same period last year. demand, due to some extent to the tightening The .Boston .& Maine Railroad reports net of money rates. operating income after taxes for April, 1916, DISTRICT NO. 2—NEW YORK. as $1,289,824, compared with $750,802 the There are reassuring signs of a needed corresponding month last year. change to a more conservative outlook in The New York, New Haven & Hartford commerce, industry, and' banking. The un- Railroad reports net operating income after restrained activity that was so conspicuous for taxes for April, 1916, as $1,904,918, compared a time seems to be steadying down to a safer with $1,450,293 for April, 1915. pace. The money market is much firmer, Leather prices continue firm. The boot and commodity prices show a further decline, parshoe industry is in a most prosperous condition. ticularly in the metals group, and commit- New business is not coming in as fast as here- ments in general are made with greater detofore, due to the sold-up condition of the liberation. manufacturers, the heavy buying earlier in the Factor}* orders are booked so far ahead and year by retailers, and the fact that it is a mid- are still being received in such volume that season period. New samples for next spring manufacturing is expected to continue for will be ready in about a month. many months without slackening. Industries Wool prices continue high, and the embargoes are hampered by a scarcit}^ of skilled and unplaced on exports to this country by' some, skilled workers, but the labor situation, except foreign countries have tended to make prices on the railroads, is more settled than it was a for domestic wool even higher. The National month ago. Failures are fewer than last year. Association of Wool Manufacturers in their Large increases are shown in figures of the quarterly report of June 1 show a slight foreign trade, bank clearings, stock exchange increase in the number of idle spindles as com- transactions, building, and'new incorporations.. pared with March 1. Practically no machinery Collections are generally good. is reported as engaged on foreign military Production of pig iron in Ma}^ was 3,351,073 orders. In this business also it is a between- tons, a new high record. Practically all kinds season period, but mills are busy on old orders of leather are in strong demand. Materials and are sold ahead for some months. used in shoe manufacturing have so largely in- Cotton mills as a rule are running full time creased in price that some grades of shoes have and many are operating overtime, mainly on been advanced $1 a pair. old contracts and to finish goods on contract Tobacco stocks are reported to be running dates. The dullness in new orders reported low, owing to a poor crop in 1915 and the in- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

336 FEDERAL RESERVE BULLETIN. JULY 1,1916. creased consumption by the armies in Europe. Postal receipts in New York in May were Sales of cigarettes have grown enormously in $2,815,351, an increase of $348,451 over May, the United States during the past year. 1915. The congestion of freight has been somewhat Rates of exchange on the leading countries relieved by an increase in the space available have been fairly steady since May 1. Sterling for ordinary merchandise on ocean steamers. bills have declined about one-half of 1 per cent, Shipping business on the Great Lakes is not so notwithstanding the receipt of $65,075,000 gold good as the owners expected, rates being lower from Ottawa. and offerings less in volume than anticipated. The money market displayed a firmer ten- Agriculture is so backward this spring in dency in May and marked increases in rates many sections that the lateness,of farm work occurred early in June. An advance of about can only be offset by exceptionally favorable 1 per cent is shown in call and time money, weather. The pastures are in good condition bankers acceptances are up one-fourth to onefor stock raising and dairying. half of 1 per cent, and commercial paper is sold Net earnings of the railroads for the nine to yield one-half to 1 per cent more. months ended March 31 last compared with the DISTRICT NO. 3—PHILADELPHIA. corresponding period ended March 31, 1915, Buying power which has developed throughshow an increase of $248,800,000. out the country tends to keep general business Imports of precious stones during the same on a strong basis. Reports from the various period increased 200 per cent. departments of trade and industry are almost Dividend disbursements in June are reuniformly favorable, and indications point ported to be $22,000,000 higher than a year to continued active conditions. The cold and ago. unfavorable weather has restricted retail trade Announcements were made of arrangements to some extent, and has retarded the moveto open in South America six new branches of ment of summer merchandise, but this situa- American banks. tion is regarded as only temporary. Russia has obtained in New York a three- The labor situation, as referred to by us last year credit of $50,000,000 at an interest rate of month, still appears to be unchanged. Labor 6J per cent. A three-year 5 per cent loan of is restless and its continual shifting is lowering $5,000,000 was negotiated here by the Newthe efficiency of many plants, thus entailing foundland Government. The London Joint loss to manufacturers. There is a noticeable Stock Banks are reported to have renewed for scarcity of female help available for mill one year their $50,000,000 credit in New York work. at 5 per cent interest. While some of the munition plants are only The statement of the New York Clearing now commencing to make deliveries, others House Association, dated June 17, 1916, shows are anticipating the end of the European war, loans, etc., $3,311,344,000, deposits $3,448,and are making plans to manufacture commod- 731,000, and excess reserves $93,681,000. Since ities for use in time of peace. This is adding May 6 last these figures have decreased as folto the growing feeling that the end of the war lows: Loans, etc., $28,440,000, deposits $49,will not have the disastrous effect upon our 993,000, and excess reserves $2,221,000. The industries which some business interests have low point of excess reserves on June 3 last was feared. $55,850,000. Activity is shown in automobiles and ac- Figures of the foreign trade of the port of New York for the four weeks ended June 17, cessories, and several large plants are in course 1916, compared with the same period last year of construction to manufacture motor cars and' are the following: Exports $243,816,993, an in- trucks. crease of $147,160,965; imports $109,635,775, Cement companies report that there is little an increase of $39,177,704. demand for cement for new buildings, con- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

JULY 1,1916. FEDERAL RESERVE BULLETIN". 337 structive work in this particular line being booked from six to eight months ahead, irrenecessary repairs by railroads and additions to spective of new contracts. Pig iron is rather plants of munition factories. quiet. Improvements are being made to Chemicals are active and prices easier. many plants, but the usual summer shutdown Drugs are in fair demand; prices have declined for repairs is not expected to occur. Shipsomewhat. Dyestuffs are unsettled, with fluc- building companies continue to be large purtuating prices. Paints are in demand at good chasers. Prices remain firm and the general prices, and glass has been purchased in good situation is one of strength. quantities. Leather and shoes.—The general market on The coal mines are working at about 75 per heavy leathers continues fairly active. Buyers cent capacity. The business is fair and prices are either well covered ahead or are holding off are improving. purchases. The local market rules strong in all Cotton and cotton goods.—The market is directions. The demand for goat leathers of seasonably quiet. Most manufacturers are all finishes is unabated. AH houses are sold not quite so anxious to contract for yarns for ahead, and customers, far and near, are urging late delivery at prevailing high prices. Spin- deliveries. Tanners and dealers have more ners are sold well ahead. Buyers feel that they orders than they can fill. There is quite a can afford to wait, expecting that prices will revival in the demand for patent kid. not be any higher when it is necessary for them There is a tendency toward lower values in to come to the market for actual needs. Be- builders' lumber. Building operations have cause of the heavy consumption of yarns and been active. the sold-up condition of the spinners, which in Silk trading has revived. Fall silks are sellmany instances runs into next year, high prices ing in good volume, and prices are holding up. are likely to be maintained. Since it is apparent that the world's stock of Agriculture is very backward on account of silk is no more than the supply of last year, the the heavy rains. The corn crop will be short. whole tendency is toward firm prices for silk The continued wet weather has caused great fabrics. numbers of tobacco plants in the seed beds to Textiles.—Higher prices and marked scarcity rot. A scarcity of plants is threatened, and x)f desirable merchandise to meet the unprethe outlook now is that the tobacco acreage cedented retail demand continue to be the outwill be much short of the average. The crop standing phases of the hosiery and underwear is nearly a month late now in being planted, industries. Production is being seriously hamand under the most favorable conditions the pered by inability of many mills to get adecrop will not be matured until the middle or quate help. latter part of September, when frost may be Wool and woolen goods.—Wools have held expected. firmly, with a fair inquiry reported. Dealers Dry goods, notions, millinery, etc.—Whole- say that they are not able to shade prices and salers and jobbers report a well-maintained then go out and replace their wools at similar demand. Sales of millinery appear to be in prices. It is asserted by those in touch with excess of expectations and much confidence in the trade that there is every reason to expect the future among manufacturers of men's and continued high prices. women's wearing apparel has been created by Rates on all classes of loans have been slightly the liberal amount of fall orders that are already advanced within the last few weeks by local being placed. banks from one-quarter to one-half per cent, There is no material change in iron and steel. with particular reference to demand loans and Domestic inquiries are less numerous, but the the longer maturities. Most of the banks reforeign demand shows activity. Producers port an increased volume of business with an are well sold up and furnaces and plants are encouraging outlook for the future. 46718—16—5 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

388 FEDERAL BESEEVE BULLETIN. , 1916. The deposits of our savings banks have in- the buyers. Some of our manufacturers have creased considerably during the last year. been flooded with trade inquiries, and exports The following table shows the deposits of the generally have increased very much within the four leading savings institutions in Phila- last year. The outbreak of the European war delphia: seriously affected financial conditions in every South American country, and for a time it was March 30, 1916 $192, 880, 000 April 5, 1915 182,870,000 very difficult, if not impossible, for South February 20, 1914 178,410,000 American merchants to finance their purchases May 1, 1913 , 171, 380, 000 in the United States, whereas during the last Within the past few weeks there has been a year they have been able to adjust themselves considerable reduction in ocean freight and to the changed financial conditions and to hansteamship charter rates. It is somewhat difdle their United States payments without any ficult to reconcile this statement with the fact particular difficulty. that the volume and value of exports are being maintained at unprecedented figures, but the Our exporting firms are closely studying action of the British Government in placing trade conditions in these southern countries, embargoes on the importation of certain com- and many firms, realizing that the trade will modities has increased the tonnage available not come to them unless they go after it, are for other cargoes. Until a short time ago, 50 now being represented by direct agents showper cent of the cargo carrying space of every ing samples to the trade and soliciting business ship under the control of Great Britain had in much the same way as our traveling men do to be reserved for wheat and flour up to within in this country. This method has brought two weeks of sailing; after that time, sufficient results. of any other acceptable goods could be loaded The high ocean freight rates prevailing at in order to make a full cargo. The British present, with the advance in wages to labor Government has recently reduced this require- and in the prices of raw materials in this counment to 33 per cent of the cargo carrying space try, have combined to make our selling prices and has also reduced the freight rate on wheat so high in some cases that sales have been refrom 18d. to 13d. per bushel, indicating that.the stricted. These advances are difficult for the store of wheat in Great Britain is now consid- foreigner to understand. ered to be sufficient. The available supply of One large exporting firm reports that they tonnage has, therefore, been increased, causing believe that after the European war is over a corresponding reduction in freight rates. competition will be keener than ever in the However, rates to ports other than those in South American markets, and they propose to Great Britain are being well maintained, as meet this competition "by cementing the relaare charter rates for long sailings, only the short tionship between the buyers and ourselves, by contracts being materially affected. The out- fair treatment, fair prices, and catering to the look is considered uncertain. customs and wants of the various countries,, From special reports received from a number meeting wherever possible their methods of of concerns regarding business conditions in doing business, their methods of carrying their Central and South American countries, and the accounts, and also by corresponding with them possibilities of extending our export trade in the language of their country and by illusthere, is obtained the information that at pres- trating our materials in the language of the ent market conditions are very favorable for country also.77. the United States, and if the expansion of our trade is pushed in logical and practical ways DISTRICT NO. 4—CLEVELAND. it is likely that our merchandise can be exported The market situation in the steel business in larger amounts than ever before to those has changed very little since last month. countries and permanent customers made of There has been some falling off in placing new Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

JULY 1,1916. FEDERAL RESERVE BULLETIN. 339 business, but this is not due to the fact that Automobile and rubber factories output is business is not obtainable if the mills were in enormous. Registration for auto and truck position to take care of it. Neither producers licenses exceeds by thousands figures of last nor consumers are anxious to consider new year. business at this time, the latter having covered Advance orders for fall goods in the garment their needs for months ahead, while the former manufacturing industry indicate better than a have their books filled with orders for delivery normal business. Difficulties on account of running well into 1917. The reaction in price dyes are disappearing. Labor troubles in the applies mainly, if not exclusively, to a few East in this trade have tended to increase busispecialties for which there was an urgent de- ness here. The demand for the higher grade mand early in the spring and on which a goods continues. premium was paid for prompt delivery. There Freight traffic on the railroads is not so conseems to be absolute confidence on the part of gested as last month. The shortage of pasthe steel trade in the future, and so much ton- senger cars to take care of summer and winter nage is in sight that there should be no proper travel is very evident. Mercantile business is excuse for any weakness. quite active, the only complaint being over the Iron ore is coming forward to lower lake slowness of deliveries from Eastern mills. ports in much larger quantities than any pre- Practically all our correspondents report vious year, and in all probabilities the ore collections satisfactory. A number of smaller movement will exceed the maximum year of customers are beginning to feel the strain on 1913 by several million tons. their capital caused by being required to pay Oil country material is in unprecedented largely increased prices for raw materials. As demand at advanced prices. Sellers of pig they receive returns on their various contracts iron are asking prices somewhat higher than this condition should adjust itself. those previously prevailing. Rather sharp There were 98 failures in the district durreductions in ocean freight rates have stimu- ing May, with total liabilities of $736,195, as lated demand for iron for export. compared with 90 failures for April, with total The coal business was retarded during the liabilities of $1,145,629. first part of June by miners refusing to accept Weather conditions have been detrimental settlement of United Mine Workers and repre- to growing crops and farmers have been greatly sentatives of the operators in part of this dis- delayed on account of heavy rains. Tobacco trict. Prices are good and plenty of business and hemp will both be good crops this year and in sight. Principal drawback is shortage of offset any damage to wheat and corn. labor, which condition some operators think Rates for money appear to be hardening and will induce mechanical and inventive skill to note brokers offerings in this district are at rates produce machines to perform work now requir- about 1 per cent over 60 days ago. ing many men. Coal business in the southern Deposits in savings banks are growing at a part of this district is very good. Shipments record-breaking rate in all industrial centers. up the lake in maximum quantities, except Clearing house figures are given below: from districts affected by above-mentioned strike, which is now settled. June 1-15, June 1-15, Per cent The market for coke is unchanged practically 1915. 1916. Increase. increase. both in respect to production and prices. Plate and window glass business continues C Cl i e n v c e in la n n a d ti $ 6 5 2 4 , , 7 1 4 4 2 3 , , 6 6 8 0 0 0 $ 9 7 2 6 , , 6 2 1 3 1 3 , , 1 15 1 0 2 $ 2 2 9 2 , , 8 0 6 8 8 9 , , 4 55 3 0 2 4 4 7 0 . . 6 7 0 9 satisfactory, except some window-glass facto- C Pi o t l t u s m bu b r u g s h 1 1 0 4 7 , , 5 2 6 0 3 7 , , 8 5 0 6 0 5 1 2 4 1 0 , , 7 7 0 4 6 6 , , 9 82 0 7 0 3 7 3 , , 1 5 4 3 3 9 , , 1 2 0 6 0 2 3 4 1 9. . 0 2 4 8 ries operating without machinery have closed Youngstown 3,551,620 5,395,688 1,844,068 61.92 for the summer. Pottery situation is good. Total 242,209,265 336,693,677 94,484,412 39.00 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

340 FEDERAL EESEEVE BULLETIN. JULY 1,1916. Post Office receipts in the six largest cities making ample preparation for the present seain the district are as follows: son, with a view to securing as full an output as possible, but crop supplies are rather below than Per cent above normal. Nineteen fifteen stock is all May, 1915. May, 1916. Increase. increase. disposed of and orders for new goods are being Cincinnati $234,089 $256,355 $22,266 9.51 booked at 10 to 25 per cent above last year, Cleveland 276,350 319,821 43,471 15.73 CQlumbus 85,160 90,706 5,546 6.51 with a tendency toward advancing prices. Pittsburgh 284,235 364,387 80,152 28.19 Toledo 82,435 97,085 14,650 17.76 Prices of agricultural implements and seeds Youngstown 21,294 25,145 3,851 18.08 are higher than usual, but this does not seem to Total 983,563 1,153,499 169,936 17.27 affect the demand, which is good. Good farm lands in the Carolinas are still selling at $25 to Number of building permits and total valua- $50 an acre, but there seems to be a gradual tions for May, in the six important cities in this upward tendency and the demand increasing. district, were practically the same as in April. Valuations show an increase of approximately Trade in automobiles is making a record 30 per cent over the month of May, 1915. Deliveries are reported slow, owing to the large demand, and there is some criticism of DISTRICT NO. 5—RICHMOND. too large a volume of credit sales. General business in this district is active. Building as a rule is reported about normal, There has been a steady improvement and con- with an improving tendency. In the Caroditions as a rule are up to or above normal, with linas there is considerable activity. prospects good. There seems to be a general Coal movements by the railroads have been feeling of conservative optimism and a rea- record breaking, and the ports report great sonable expectation of continued good business activity. and prosperous conditions. A dry May prevented good stands of cotton Cold weather during the spring months, a and necessitated some replanting, and heavy dry May, with heavy precipitations in June, rains in June have handicapped farmers in the leaves the rainfall slightly below normal, but ex- cultivation of the crop and controlling of weeds. treme variations have been a handicap to work There has been an increased late demand for and results. The rainfall recently has been ex- fertilizers. cessive and reports indicate uneven conditions. Cotton mills are running on full time and Market gardening along the seaboard in this many of them running at night. They are district is more successful than for several years well supplied with orders, some booked three past. The yield of potatoes is estimated at or four months ahead, while others are sold up about 60 per cent, but they are selling for $4 to to the end of the year. This is about as far $5 a barrel. The prices of berries, melons, ahead as they care to go, owing to the difficulty peaches, beans, and cabbage have been satis- of securing dyestuffs. A leading selling agency factory. Shipments of cabbage are reported which distributes goods throughout the United heavy. One section reports an active cam- States as well as foreign countries reports that paign for the planting of forage crops, soy beans, the export demand is more active than the cowpeas, velvet beans, etc. In this connec- first of the year. Collections are very satistion the North Carolina Extension Service is factory, alike from agricultural, mining, and taking up through demonstration agents the manufacturing districts. There are very few erection of silos, planning and aiding in their requests for delayed shipments, whereas nuerection wherever farmers can be induced to merous letters ask for the forwarding of goods build them. ahead of shipment dates fixed at the time of In the valley of Virginia general crop condi- placing orders. tions are reported very satisfactory and an Very few farmers who prepared a deep seed abundant harvest is predicted. Canners are bed for their corn have suffered during the Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

JULY 1,. 1916. FEDERAL EESERVE BULLETIN. 341 variable and unfavorable season. Their fields at this time than ever before in the history of are clean and the crops show a vigorous growth. the industry. Shoe trade is active, but prices Other growers who seem to have disregarded are high and buying is reported as cautious. the importance of preparation before planting Natural and seeded pastures throughout the are encountering weeds and grass and are States are in excellent condition. Live stock, unable to remove them on account of the heavy cattle, hogs, sheep, and colts are growing and rains. developing in proportion to the grass afforded Oats are reported poor particularly early them. Prices are high, and an increase in hogs ; plantings. Later-maturing plantings have is particularly reported from almost every secbeen developed by the first rains in June and tion. Dealers in horses and mules report good may afford a better yield. Conditions as to business, money more plentiful than last year, hay and alfalfa are very uneven, and on the and prospects good. whole do not promise well. There is some complaint about difficulty in The furniture trade is active at advancing shipping facilities; business not quite so active prices, but large dealers have pretty well sup- as during the first four months of this year, and plied needs and are indicating caution as to fur- somewhat easier prices indicated. ther purchases at present high prices. Condi- Money is reported in better supply throughtions and collections are good, and further in- out the district than usual, but with some indivestments are indicated in new enterprises or cations of an improved demand. Bank deposenlargements of present plants. its are above normal. The Carolinas report considerable activity in Reports as to the tobacco crop show uneven industrial improvements, the construction of conditions, some sections reporting the crop as electric-light and water improvements, drain- short, while others indicate a much better age, paving in a number of towns (one town situation. reporting the contemplated expenditure of DISTRICT NO. 6—ATLANTA. $500,000), cold-storage and gas plants, and sev- The general outlook in the Atlanta district eral fertilizer and ice plants. One new small continues bright. Money is plentiful and rates roller mill is reported, to use home-grown and normal with light demand. The impression is western wheat. One point reports a colonizathat with the cessation of war money will flow tion land scheme for the purpose of locating more freely along trade channels, and this section families from out of the district, and another anticipates new and diversified industries. point reports the incorporation of a seed farm. Cotton conditions are reported as favorable, There is considerable interest being taken in but the fields are in need of sunshine and warm creamery products. One plant started with a weather. Especially is this true in the northern supply of milk from about 200 cows, and is said section of the cotton belt. The corn crop is the now to be taking the supply of about 2,000 best in several years. Crops will be made at cows. They contemplate adding an ice plant a less cost than average this year, and with good this summer and also the handling of poultry prices the farmers should be in a prosperous and eggs. condition. No unusual advances have been Business in hardware and machinery is remade on growing crops, and unless rains conported 30 per cent better than last year, but tinue and the cultivation of crops necessitate a the high cost of materials has interfered with great deal of additional labor no demand for deliveries. additional money is anticipated. Labor is fully employed at good wages and New business has somewhat receded, but the demand is in excess of the supply. No manufacturing and general industrial lines conlabor troubles are reported in the district. tinue to operate full time with plenty of orders Tanneries and extract plants are operating at ahead. Labor in general is satisfactory and full capacity, more peeled bark being handled well employed. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

342 FEDERAL RESERVE BULLETIN'. JULY 1, 1916. The boll weevil has made its appearance in of large yield and good prices. Interest in the the cotton fields in some sections of the district coffee market appears especially strong, and in spite of efforts to combat it. Owing to New Orleans reports deliveries in New Orleans recent rains, adverse conditions of cultivation in excess of the port of New York. are reported from some sections. The weather Conditions in lumber have softened someof late has been too cool, especially in the what. Mills have large stocks on hand, and northern section of the cotton belt, but with the market is suffering from overproduction, improvement in this the prospects are good for caused by car shortage and scarcity of vessels. an average crop, Some mills have shut down, while others do There has been a large increase in corn not believe present conditions will last long planting, and conditions have been very favor- and are building larger mills, with a view to able. The crop is in fine shape, and present expansion in the fall. The Edward Hines indications point to the largest and best crop Lumber Co. of Chicago has completed arfor many years. rangements for the erection of a mammoth Notwithstanding an increase of acreage in sawmill at Gulf port, Miss., to cost approxiwheat and oats, the wheat crop shows 25 per mately $800,000. The mill will cut for export, cent decrease. Oats are reported poor. The and it is reported contracts have been signed hay crop is exceedingly good and a large crop for timber to run the mill 20 years. Hardwood has been produced, with prices high. manufacturers are reported to have more orders Fruit is light in Tennessee and Alabama. than they can fill. A few railroads are buying In Georgia it is lighter than 1915, but prices pine crossties, and export demand is good are better and expectations are that good but ocean transportation lacking. prices will prevail, owing to shortage of crop. Prices of naval stores show little improve- The average increase in price is 10 cents per ment, although exports to Russia, Cuba, and crate over last year, which means a good sum Great Britain are in demand, with the interior in the growers7 pockets. Owing to rains the demand fair. The new crop is beginning to be marketing is somewhat late, but shipments are worked with prospect of slight increase over now beginning to move. Watermelons are previous year's production. Consensus of beginning to move to market. Recent rains opinion is that about September 1 rosin and were very timely and the crop will be a good turpentine will both show considerable imone, with heavy acreage and prospects for good provement in prices. prices throughout the next few weeks at least. The coal market is showing some improve- Cantaloupes are being shipped in large quanti- ment both in demand and prices, but the industies, with excellent prices prevailing. The try is hardly in a healthy condition. The usual Florida citrus fruit crop is short, and the out- spring contracts have been considerably off put is estimated from 60 to 70 per cent. and a short, crowded season is looked for in the Tobacco crop reports have been encouraging, early fall. the weather being favorable for transplanting. The market for pig iron is slack with large A fine crop has been put in and the general production continuing, but with steel orders condition is good. There is a strong demand placed for months ahead the industry may be for export of previous years7 holdings, but said to be thriving. owing to lack of shipping facilities it is moving Strong interest continues to be shown in live slowly. stock throughout the district, especially beef New Orleans reports the rice market as quiet, cattle. The present market is reported dull. with well-maintained prices, notwithstanding High prices of structural steel, brick, etc., indications that the present crop will be a has retarded general building. Shipbuilding large one. Rains have been general in the is reported particularly active at port cities. sugar belt and planters are optimistic, in view A large amount of good roads work is being Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

JULY 1, 1916. FEDERAL RESERVE BULLETIN. 343 done and a vast amount of money expended little hesitancy at this time, and some money for these improvements throughout the has undoubtedly been attracted into the new district. promotions, thereby curtailing bond sales. Foreign trade is hampered by continued lack During the past year some of the large banks of shipping facilities and high rates, although were buyers of bonds, and it is stated have reduction in cotton rates has quickened ship- started to sell, taking their profit; also, that ment somewhat in this line. the securities have been rapidly absorbed by There are many new enterprises, but most other interests. of them are of small size. Labor is well employed at substantial wages, There is a general feeling that the present and a number of strikes have been settled or high prices will find a lower level after the war. avoided through granting the demands of the The wholesale trade improves slowly and indi- employees. Some of the labor disturbances cations are that little gain will be shown for are still unsettled. The increased cost of some time, at least not until after another crop production has, in a number of instances, been has been gathered. Retail business is fair, added to the selling price, and this is to some though the volume is not increasing, due mostly extent tending to cut down sales. Collections to increased prices in almost every line. in parts of Iowa are still unsatisfactory, but Collections are reported fair. Bank clear- in general appear to be a little better than normal. ings show an increase of over 25 per cent throughout the district. Money in slightly During the past month the weather has been better demand, with little change in rates. cold and wet, delaying the planting of corn Express and postal- receipts show large in- and some vegetables. Throughout this discreases. Railroad receipts continue to im- trict the pasturage is reported as excellent, prove. The Southern Railway reports a gross with good prospects for a heavy hay crop. revenue increase of 18.58 per cent for year Corn, while delayed and damaged by the presending April 30, 1916, as compared with same ent conditions, will probably furnish a satisperiod ending April 30, 1915. factory crop if it receives the benefit of warm growing weather in the near future. In Illinois DISTRICT NO. 7—CHICAGO. the prospects for wheat are none too good, but There has been no perceptible decrease in oats should be in good supply and corn satisbusiness activity since the last report. The factory. The fruit crop, with the exception banks in the larger centers still have excess of peaches, is favorably commented upon. funds, but a demand is gradually developing Indiana has practically finished its corn plantwhich has to some extent firmed up rates, and ing, its oats and grass have favorable prosthere is evidence that a stronger money market pects, but wheat in this section appears to be may put in an appearance. In some of the considerably below normal. In Iowa some country communities there is borrowing for replanting of corn has been necessary, as has the purchase of automobiles, while in other been found advisable in other States also. In sections, particularly through Iowa, excellent general, the agricultural prospects are good, pasturage is accounting for borrowing by the and a substantial crop of oats and hay is anticifarmers, who are purchasing cattle to feed. pated, with an acceptable quantity of corn Banking centers in the State of Iowa comment and wheat. Fruit is said to be in good conupon this latter situation, but on the whole dition. Michigan gives promise of a large the supply of money is in excess of the demand. fruit yield, and the general crop prospect is Local bond houses are of the opinion that satisfactory considering the weather condithe investing public still is in position to absorb tions that have existed during the past few a large volume of securities, and sales are weeks. A considerable acreage of potatoes reported in excess of last yeai\ There is a and beans is reported, and there is still some corn Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

344 FEDERAL 'RESERVE BULLETIN. JULY 1, 1916. to go into the ground. Wisconsin lias excel- been engaged in a controversy with the raillent pastures and a satisfactory outlook for roads and this has somewhat retarded the oats and hay. Corn is weedy in sections, and current movement of tonnage. Credits are some damage has been done to the potato receiving closer supervision. There are some crop. Replanting is difficult on account of indications that there will shortly be renewed the wet ground. activity in this line. Agricultural implements.—Reports from this Distilling and brewing.—Regular distilling line of industry give evidence of some decrease business is rather quiet, with a decrease in in sales, owing to the advanced cost of materials special war orders. Breweries are experiencand the reported damage to the crop. With ing some activity, although the annual volume good weather conditions, a reasonable volume will not be as great as anticipated unless warm of business is still anticipated. Some manu- weather soon develops. facturers comment upon the difficulty of pro- Dry goods.—In manufacturing centers a large curing raw materials, and a higher wage scale distribution of merchandise is evidenced and has been forced upon a number of companies sales are reported by wholesalers as considerby the restlessness of labor. ably in excess of last year. Some retailers are reordering, but there also appears to be specu- Automobiles.—This line is still very active, lative buying based upon an anticipated shortcollections are good, and the demand seems to age of goods. Several authorities advise caube in excess of the productive capacity of the tion in this connection. Letters from wholefactories. This is a prosperous period for the salers and retailers throughout this district inindustry, and no one seems willing to venture dicate a satisfactory volume of business in spite an opinion as to its duration. of the high prices, but a slight falling off in Building and building materials.—Apartsales to farming communities. This, however, ments, dwellings, and manufacturing plants is not considered unfavorable as there is prosare being constructed in Chicago, and there is pect for a brisk fall trade. The situation as some indication that structural steel is not regards certain materials and dyestuffs is still quite as firm as heretofore, owing to the comcausing uneasiness owing to the values placed petition of reinforced concrete construction. upon this class of goods and the possibility of a The building of apartments seems to have sudden break, should the foreign situation clear. been overdone, as one authority advises us Furniture is said to have enjoyed a satisfacthat there are about 18,000 vacant apartments tory spring business, and the trade is underin this city. Brick companies report a greatly stood to be preparing to advance prices to an increased business over the corresponding average of 15 per cent to cover the increased month last year, with good promise for the cost of manufacture. There is a seasonal lull future. Cement is not benefiting by present in this industry. conditions, and considerable difficulty is re- Grain markets.—Conditions in the wheat ported in securing men to handle concrete market have changed considerably since last work. Shipments are in smaller volume than month with the improvement from the earlier expected, and there is evidence of hesitation estimates of the winter wheat prospects. Corn in connection with building operations, due has held steady and the oat prospect is good. to the relatively high prices of materials and It is understood that there is a probability of the scarcity of labor. Activity in local real material reduction in the coming Canadian estate has increased, and similar conditions are crop, and this may benefit the United States reported from several of the manufacturing wheats, both old and new crops. centers in this district. The general conditions in groceries are sat- Coal.—The movement of tonnage is said isfactory, although in some sections a falling to be at low ebb, and the mines are reported off in trade is in evidence which is to some exas working only part time. This industry has Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

JULY 2,1916. FEDERAL RESERVE BULLETIN. 345 tent accounted for by the abnormal price of reasonably satisfactory volume of business grocery staples. Collections seem to be normal maintained. Collections are improving to some or better and distributors are hopeful that the extent, but extra time is said to be required in successful issue of this year's crops will prove certain sections. of material benefit. Movement in canned May is said to have shown a gain in mailgoods is said to have been slightly retarded in order sales all through this district, with a certain sections, and weather conditions have tendency on the part of the consumers to not been favorable to the business in rural restrict their purchases of building material, districts. wire fencing, and metal products. Textiles, leather, and wooden articles seem to be taken Buyers of hardware are more cautious but in good volume, and general business in this the demand for merchandise is still strong and line is reported as brisk. raw materials are held at high prices. Collections are generally satisfactory, and a substan- The demand for pianos is not quite as active as last month, which is explained as seasonable tial demand for goods is reported. and likely to continue during the months of Leather.—There are some indications that June, July, and August. Production costs values in this industry will work lower, but have been considerably increased through adup to date they have been well maintained. vances in material and labor, but manufac- Retail merchants report brisk business but it is turers are optimistic as to the outlook, and expected that the next few weeks will see dealers appear to be in better condition to somewhat quieter conditions. This is said to meet their engagements than for some time be seasonal, and a resumption in the demand past. Collections on the whole are said to be for merchandise is looked forward to by the satisfactory, and general music houses are latter part of July, should crop prospects be satisfied with the results of the past year and favorable. Shoe manufacturers are working the present outlook. up the stock on hand, and collections appear satisfactory. In the belting line difficulty is Steel.—The volume of new business during experienced in securing some of the necessary the past few weeks is reported as somewhat less raw materials. than has previously been recorded, but the activity is considerably above normal and Live stock and packing.—The domestic deprices are firm. There is evidence that the mand for packing-house products has strengthpremium asked for prompt shipment is not as ened during the past month, and the foreign high as it has been, but some of the companies demand decreased, the latter by reason of have not yet opened their books for 1917. restrictions due to congestion on the Continent. Collections are reported good and prospects Prices maintain a strong tone and live-stock encouraging. shipments are reported as coming to market Watch factories are experiencing a slight in excellent condition and realizing substantial decrease from the heavy business of last month, prices. Collections are said to be good and which was caused by a rush of buying on the the outlook satisfactory. By-products are still part of dealers. However, a good business is at comparatively high values, and the present looked forward to during the remainder of the tone to this trade is expected to continue for year. Local jewelry stores claim an increased some time. volume over the corresponding period a year The demand for lumber has not changed ago, with good collections. Manufacturing materially since last month, but retail dealers conditions are not entirely satisfactory, owing in the country are now reported as confining to labor disturbances and a shortage of some of their -purchases to their immediate needs. the necessary goods. Imports are practically Shipments to the manufacturing trade are said at a standstill with the exception of precious to be below normal, with prices firm, and a stones. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

346 FEDERAL RESERVE BULLETIN. JULY 1, 1916. The movement of wools is said to be improv- indications are that their orders for future ing. Values are well maintained in spite of a delivery are considerably larger than last year, quiet market and there is a prospect that the and in some cases have broken the record for manufacturers will have to increase the prices advance orders. The dry goods interests furof their finished articles correspondingly this ther report that stock in the hands of retail fall. Manufacturers of knit goods are active merchants are probably smaller than they on orders for summer and fall delivery, and were 30 or 60 days ago, thus evidencing immethey are experiencing some difficulty in pro- diate consumption of merchandise and a lack curing aniline dyes, although there is some of speculative buying. The same conditions increase in the supply of black dyes. The spec- seem to rule among the boot and shoe manuulative buying by merchants who anticipate a facturers. One large house which makes a shortage in woolen goods is being carefully practice of publishing its sales reports an watched, particularly from the credit stand- increase in shipments of over two million dollars for May, 1916, as compared to May, 1915, point. and a gain of over five million dollars in ship- Clearings in Chicago for the first 20 days of ments for the six months ending May 31, 1916, June were $1,085,000,000, being $220,000,000 compared to a similar period a year ago. more than the corresponding 20 days of June, 1915, and $112,000,000 less than the first 20 Hardware and allied industries report similar days in May, 1916. Clearings reported by gains. In a few cases where prices have be- 21 cities in the district outside of Chicago come prohibitive the demand has slackened, amounted to $214,000,000 for the first 15 but in general the increased cost has not had days of June, 1916, as compared with any apparent influence on sales. There seems $160,000,000 for the first 15 days of June, to be no speculative buying. The situation in 1915. Deposits in the eight central reserve the paper trades seems to be somewhat differcity member banks in Chicago were ent. Prices perhaps increased more rapidly $629,000,000 at close of business June 20, than in the general merchandise lines and apparently the paper trade has undergone a 1916, and loans were $444,000,000. Deposits period of readjustment and is now on a more show an increase during the past month, and normal basis. Practically all wholesalers of loans a slight decrease. general merchandise report their collections to DISTRICT NO. 8—ST. LOUIS. be in good condition and that they follow the General business conditions during the last 30 trend of sales closely. The drug and chemical days have more than held their own, even commarket shows a slight recession in prices as pared with the rapid advances made in the last compared to 30 days ago and the same may six months. The usual summer lull is evident be said of certain ores and minerals. in some lines, but shipments show an advance St. Louis postal receipts show an increase as compared to the same period in the last few every month this year as compared to the same years. It should be remembered that business months of 1915, the increase running about in this district began to show signs of improve- 10 per cent monthly. ment something over 15 months ago, and com- The earnings of the railroads operating within parisons of this year with 1915 show a real this district continue to show the increase improvement and not an artificial improvenoted in the last report. The figures for April ment due to a comparison with a period of are the last official figures available at this general depression incidental to the outbreak writing, and they show an increase in both of the European war. Conditions are believed gross and net earnings for every road operating to be fundamentally sound. here. It is especially noticeable that the per The dry goods interests in the district show cent of increase in the net earnings is larger an increase in business for May and the first than the per cent of increase in the gross earnhalf of June as compared to a year ago, and ings. An increase in the number of idle cars is Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

JULY 1,1916. FEDERAL RESERVE BULLETIH. 347 again unofficially reported although there It will be seen that the condition June 1 seems to be no decrease in the tonnage moved. shows a loss for every State reported in the This doubtless indicates quicker unloading at district, and it seems probable that this, comterminal points. bined with the large abandoned acreage noted Labor conditions in this district have not in the June 1 report to the Bulletin, will been as much upset as in other parts of the result in a considerably reduced harvest. The country and, generally speaking, are believed figures given indicate a yield in the States to be satisfactory. reported of only about 61 per cent of the On June 1 a number of letters were sent out 10-year average and only about 47 per cent to farmers in this district asking them to report of the final estimate for 1915. It should be on the condition of crops in their neighborhood, remembered, however, that a large amount and below is a summary of answers received. of the 1915 wheat crop is still in the hands of These answers came from every section of the farmers or held at primary points. The first district. car of 1916 wheat was received in St. Louis on June 14. The harvest has begun in the extreme southern portions of the district, where Good. Fair. Poor. the grain was reported as fully matured but Wheat 3 34 the yield per acre light. The crop as far north Corn 57 28 Cotton 19 19 as St. Louis is now beginning to ripen and Tobacco 21 4 Oats 28 32 warm sunny weather would be of benefit. Barley 2 10 Hay 48 35 From all reports it appears^that the prospects Rye 10 23 Alfalfa 26 13 for the corn crop in practically every section Potatoes... 45 23 Apples 15 27 of the district is excellent. The stand is Peaches 21 20 Small fruits 52 19 reported to be good. The crop has received Vegetables. 73 11 its second cultivation in the southern parts of the district and has received its first culti- In taking the district as a whole these reports vation in ail except the most northern sections. indicate sound agricultural conditions and sat- Damage due to continued and excessive rain isfactory crops with but few exceptions. is reported from a few localities, and in general Reports on the wheat crop are the least encourit may be said that less moisture and more aging. In considering the report on the oats sunshine would be of benefit. crop it may be noted that the adverse comment The table here given shows the condition comes almost entirely from the Southern States of oats on June 1, 1916, giving the percentage in this district, while the great oats-producing States, that is, Missouri, Illinois, and Indiana of acreage this year compared to 1915 and report a favorable outlook. the percentage of condition June 1, 1916, compared to the June 1 ten-year average. Below is given a report on the condition of wheat on June 1 and for the 10-year average, also the change in condition as compared with Conditionthe May 1 report of 1916: Percentage of 1916 acreage to 1915. June 1, June 1,1916. 10-year average. Change in June 1, June 1,10- condition 1916. year aver- from May Illinois.. 103 85 age. 1, 1916. Indiana. 110 84 Missouri 103 78 Per cent. Per cent. Illinois 53 78 - 9 This report indicates an increase in acreage Indiana 60 79 - 5 Kentucky 72 84 -15 compared to 1915. The condition in these Missouri . . 58 79 — 12 Tennessee 80 87 g three States is also reported to be better than Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

348 FEDERAL RESERVE BULLETIN. JULY 1, 1916. the 10-year average for the same date. The the main satisfactory. Hay and clover are condition of oats in the southern States of the now being cut as far north as St. Louis, and district is not entirely satisfactory., particu- the stand seems to be unusually heavy. One larly those parts of Kentucky, of Mississippi, or two sections in southeast Missouri report a and of Tennessee included in this district. second cutting of alfalfa. However, these sections report excellent pros- The National Stock Yards, Illinois, report a pects for cotton, corn, and tobacco. Undue substantial increase in the receipts of cattle, significance should not be attached to these hogs, and sheep and a decrease in the receipts adverse comments from these sections, as the of horses and mules for May. oats crop is not of prime importance, while Banks in this district continue to hold surtobacco and cotton are. plus funds largely in excess of their require- A report on the rice crop from one of the ments, and this seems to be true of our central rice producers of Arkansas reads as follows: reserve city, St. Louis, and reserve cities, as " Prospects were never better at this time of well as country banks. Commercial paper is the year." Another letter from an adjoining quoted at from one-half to 1 per cent higher county states that "it has an increase of than it was six weeks ago. Commercial-paper about 10,000 acres in the rice this year and a brokers report an inactive market, with little very good yield is expected." demand from either borrowers or buyers. At The figures on the cotton crop taken from this writing this stagnant condition may probathe Government report as of May 25 indi- bly by attributed to a conservative attitude cate a better condition of the crop on May pending developments with Mexico. The gain 25, 1916, compared to May 25, 1915, for in clearings which has been so noticeable in every cotton-producing State in the district the last month in the principal cities of the except Missouri, and the condition on May District continues. Figures for the week 25 this year shows an important gain for ending June 10 being as follows: Evansville every State in the district compared to the 21.9, St. Louis 41.8, Louisville 21.7, Memphis 10-year average. As previously reported, the 35.6, Little Rock 42.8. crop is about 10 days later than usual. Re- This bank's clearings for May, 1916, were ports from private sources indicate that the as follows: Total of items, 217,088. Total continued rains have hindered the cultivation amount, $105,283,260.54, which is the largest of the crop to date, but no serious setbacks clearings both as to amount cleared and numhave been reported and the stand is im- ber of items for any month since the bank has ported good. Dryer weather and more sun- been in business. In May, 1915, the number of shine are needed. items was 134,452 and the total amount The strawberry crop in the large producing $47,048,300.31. sections of the district is about over. Home- DISTRICT NO. 9—MINNEAPOLIS. grown berries are still coming into market in limited quantities in the northern sections. General business conditions in the ninth Reports indicate that the harvest has been reserve district show no appreciable change. all that was expected of it, and the crop moved Wholesale trade is active, and retail lines are to market at prices satisfactory to producers. prosperous. Manufacturing and industrial en- Reports on apples and peaches are somewhat terprises have all the business they can take confusing. It appears, however, that the care of, and orders placed guaranteeing a satisapple crop will be below the average and the factory output during the summer and early peach crop only fair. Indications promise a fall. good potato crop and the supply of small Since the district is largely agricultural, the fruits, vegetables, and truck-farm products is chief interest at this season centers in the crop abundant. The fodder crops seem to be in situation. Weather conditions have prac- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

JULY 1,1916. FEDERAL RESERVE BULLETIN. 349 tically duplicated those of a year ago, with, the DISTRICT NO. 10—KANSAS CITY. exception that there has been a slightly better The month has been generally unfavorable percentage of growing weather. The days to vegetation, but beneficial rains have fallen have been cool with continuous rains. All the in ample volume at all but a few points. Hail small grains are in very excellent condition and and floods have resulted in considerable damshow a sound, healthy growth, with good pros- age, but this has probably not been more than pects of a substantial yield. Corn has suffered normal. the same reverse that overtook it a year ago, On the whole the condition of the wheat has and is making slow progress. The wheat acre- not deteriorated. In some localities the rains age is reduced approximately 15 per cent, and have- brightened prospects, while in others inthe corn acreage will be less than a year ago. sect damage has continued. The latest reli- Conditions as a whole would seem to indicate able Kansas estimate is a 100,000,000 bushel that the crop the Northwest will harvest this crop. The harvest is working northward and year will show good average yields of all small the quality, as a rule, is better than last year, grains, although the total crop will be some- although the yield is somewhat reduced. The what less, and the corn crop short. first alfalfa crop has been cut, the yield being General business conditions are reflected in heavy and of fine quality. The cotton outlook larger clearings and increased volume of loans, was never brighter in spite of the lateness of the increases in building permits issued, and in season. Stocks of wheat in Kansas City on rural and urban construction of ail sorts. June 3 had increased to 6,150,000 bushels, The farmers are spending considerable money nearly three-fourths million bushels more than in permanent improvements, and line lumber on May 1, and 13 times as much as a year ago. yards have been doing a brisk business. Such a stock of grain in storage is unprece- Post offices at the principal centers show dented at this time of the year. Grass is in gains, as does Minneapolis where there was fine condition. It has been too cool and wet an increase of 15.2 per cent in receipts during for corn and considerable replanting has been the first 20 days of the month. necessary. Money is easy at rates which show no ap- There is a growing unrest in labor organipreciable change. The previously heavy re- zations, and strikes have been rather frequently serves of some of the larger banks are being re- reported from different cities and in various duced, and some of the banks in purely agri- industries. Building operations have been escultural sections are beginning to rediscount. pecially hampered. There is a serious shortage The indications are that the demand for money in harvest hands. Kansas, alone, must import in the current operations of farming and busi- a total of 45,000 men, while less than 3,000 are ness is improving. The outlook is for some at present available. hardening of rates. In lumber the business of the first five Labor is fully employed at very good wages, months of this year shows an increase in volume and good men are hard to obtain. There is of over 50 per cent, both wholesale and retail, some complaint that the present high level of over the same period of 1915. The retail lumwages has brought no improvement in effi- ber business in the agricultural section expericiency. enced some dullness during the months of May The traffic situation has improved somewhat, and June, farmers being especially busy at this / and with a more moderate movement toward season of the year, but lumbermen generally the eastern seaboard the car situation is more anticipate that beginning with July there will satisfactory. The general volume of business be a good volume of business during the balance handled by the northwestern transportation of the year. Dealers expect that with the relines is considerably improved as compared sumption of normal buying by retailers the with a year ago. market will show some stiffening. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

350 FEDERAL RESERVE BULLETIN. JULY 1, 1916. Building permits issued in the following out difficulty. The past 60 days have shown principal cities for the first five months of 1915 some expansion in loans. Deposits in all and 1916 are: banks and trust companies in the reserve cities of the district show a most satisfactory increase over the last preceding reports. 1915 1916 Increase. City. A further indication of active business con- No. Amount. No. Amount. No. Amount. ditions is reflected by the following statement of total clearings for the first five months of Kansas City.. 1,479 $4,144,190 1,443 84,570,804 136 $426,614 Omaha 440 1,863,840 600 2,707,947 160 844,107 1915 and 1916: Denver 1,315 1,284,695 1,164 1,784,390 i 151 499,695 Lincoln 225 686,329 235 968,455 10- 282,126 St. Joseph 283 368,194 274 631,947 9 263,753 Wichita 99 197,905 152 957,435 53 759,530 City. 1915 1916 Increase. Topeka 193 280,830 215 377,907 22 97,077 Oklahoma City 52 193,844 163 747,030 111 553,186 Kansas City | SI, 522,684,2 $1,750,606,524 .$227,922,255 Pueblo 64 74,445 81 125,985 17 51,540 Omaha. 388,813,871 488,166,491 99,352,620 Muskogee 15 23,315 33 63,090 18 39,775 Denver.., 186,161,862 241,777,775 55,615,913 St. Joseph 161,066,378 199,534,418 38,468,040 Wichita 74,707,641 95,176,800 20,469,159 i Decrease. Oklahoma City. 52,961,628 70,643,427 17,681,799 Lincoln... 48,484,812 62,683,157 14,198,345 Railroad earnings oil practiealty all main M To u p sk e o k g a e . e .. 3 1 0 4 , , 9 2 5 0 6 6 , , 6 5 7 6 6 4 2 35 6 , , 3 1 2 4 5 6 , , 3 8 2 6 1 2 1 4 1 , , 3 9 6 4 8 0 , , 6 2 4 9 5 8 lines within the tenth district have shown a most satisfactory increase in net revenue over Perhaps no statement more clearly india similar period of last year. cates the trend of business than a comparison This has been a record-breaking period in of postal receipts in the cities named for the oil, both in increased equipment for producing first five months of 1915 and 1916: organisations and in volume of completed wells. Two thousand wells were completed City. 1915 1916 Increase. during last month in the Mid-Continent field, starting with an estimated new production of Kansas City, Mo... $1,268,190 $1,429,305 $161,115 Omaha, 607,477 676,565 69,088 105,000 barrels a day, and the current month Denver 559,627 622,755 63,128 Oklahoma City 196,122 236,663 40,541 promises- to exceed even that wonderful record. Lincoln 215,123 199,840 15,283 Wichita 139,611 171,797 32,186 It is estimated that 6,000,000 acres of Kansas St. Joseph 161,281 165,735 4,454 Topeka 172,437 182,542 10,105 land are under leases of oil promoters, and the Kansas City, Kans, 82,620 84,824 2,204 Pueblo 53,974 60,391 6,417 field is constantly widening. Lately Wyoming Muskogee 47,341 •51,160 3,819 Cheyenne 22,903 30,427 7,524 has attracted great attention and is enjoying important developments. Present indications The live-stock industry is more prosperous are that the production of the Mid-Continent for the time being than ever in its history. field will continue to increase, but the cer- The increase of receipts so far this year over tainty of a multiplying demand is expected to last year at the five principal western marmaintain the industry at its substantial pros- kets is as follows: Cattle, 300,000 head; hogs, perity. The second largest oil well in Okla- 1,300,000 head; sheep, 75,000 head. homa has just been completed, and is said to In spite of this somewhat remarkable increase be producing 14,000 barrels of oil daily, while in receipts, the prices have ranged from $1 to $2 the largest sale in the history of the petroleum per hundredweight higher than a year ago. The business is just reported, involving a consider- highest price ever obtained for cattle in June, ation of $12,000,000. $11.25 per hundredweight, was reached this There has been no appreciable change in the month on the Missouri River markets. There rates of discount, although most bankers ex- is every prospect for early fat cattle off the press the opinion that higher rates will be in grass and when these begin to come in freely it effect in the near future. Banks are able to is natural to look for cheaper beef. The dehandle the usual crop-movement demand with- mand for cattle loans has strengthened consid- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

JULY 1, 1916. FEDERAL RESERVE BULLETIN". 351 erably, caused by western and southwestern In a considerable portion of the southwest concattlemen buying young stock to replace the ditions are very unfavorable. Few farmers in older stock sent farther east to the fattening that section will make any crops at all to speak pastures. of on account of the drought. It is estimated There has been a downward tendency in the that 75 per cent of the farms in that section metal market, including tungsten, lead, copper, have not been planted or will have to be reand spelter. Capital, however, is seeking planted when it rains. Most of the stockmen mines, gold and silver properties being most in in that territory are shipping their cattle away demand. In many districts mines have dou- where grass can be had. Others are, to prebled their output of values compared with last vent loss, feeding cottonseed cake at a considyear, and they are now earning large profits for erable expense. both owners and lessees. Zinc ore production Cotton.—The most careful inquiry possible throughout the district continues to be cur- as to the acreage and condition of the cotton tailed about 30 per cent as a result of strikes. crop appears to justify the following statement The total ore output for the Leadville (Colo.) as conservative: Due to conditions of contindistrict for 1916 is estimated at $18,000,000, a ued drought in the more settled portions of gain of 50 per cent over 1915. southwest Texas, where last year excellent Jobbing interests are highly pleased with the crops were raised, the productive acreage of spring volume of trade, which greatly exceeds cotton will not be so much increased as seemed that of the last few years. The sale of farm likely a month ago, unless the proportion of implements has broken all records for the last land planted in grain, to be replanted in cotton, five years. In dry goods a good volume of is greatly increased. In view of the fine rains business is reported. In footwear business in the more central belt, this seems not uncontinues to be much above normal. likely. The plant is everywhere from two to three weeks late, but the stands are good, the DISTRICT NO. 11—DALLAS. plant thrifty, and in excellent state of cultiva- Conditions in the agricultural sections of the tion. Altogether there is a fair promise of a district are receiving attention at this particu- substantial, though not extremely large, inlar time, and interest is largely centered in that crease in the yield over last year. The plant direction. Conflicting reports are received as is in an excellent position to realize the maxito the crop development. The small-grain crop mum benefit should favorable weather be exis being harvested, and weather conditions perienced during the remainder of the month, could hardly have been more favorable. Esti- and adequate moisture and seasonable temmates vary as to the yield. The crop will be peratures would largely reduce the extent of nearer normal in the northern counties of the early lateness. The boll weevil has made Texas and the Panhandle section. A conserva- its appearance in some sections, and rains tive estimate as to wheat yield would be 10 to would no doubt increase their numbers to a de- 12 bushels to the acre; oats, from 20 to 30 structive degree. bushels. It is difficult to reconcile reports as Promoters of the campaign for the warehousto the size and yield of the grain crop. Un- ing and gradual marketing of the co:ton crop doubtedly due to drought and unseasonable are meeting with encouraging developments, freezes there is a substantial decrease in acre- and with several months ahead in which to age. It seems certain, too, that the average promote the campaign it is expected the crop yield is less than in 1915. The quality of the will be much better handled than in previous grain is very good in practically every section years. of the State. A conservative estimate of the A notable development throughout the diswheat is 12,000,000 bushels. The oat crop is trict is found in the extreme economy in the from 60 to 75 per cent of the yield last year. production of the crop. There is some evi- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

352 FEDERAL RESERVE BULLETIN". JULY 1, 1916. dence of hoarding, in the sense that many maturities. There is quite a decrease in the persons are keeping their deposits intact and amount of live-stock paper offered, as at this declining to invest their funds, in view of the season stockmen are shipping their stock and uncertain conditions prevailing, threatening liquidating their obligations. The loans and possible war, and in view further of possible discounts of this bank show a decrease over the conditions at the close of the European war. same period a 3^ear ago of some $900,000, indi- Corn.—The corn crop is, as a rule, in a sat- cating that the member banks are in much isfactory condition. Recent rains over the better condition to go through the summer corn belt have been very beneficial, and with months. favorable conditions the crop will be large. The cattle and sheep industries are active. However, much will depend on the amount of In the extreme West ranges are getting short rainfall for the next 30 days. Indications at on account of lack of rain, though conditions present are that the crop will be from 75 to 90 in this regard have not become serious. There per cent normal. is little demand for steers, but she cattle are The rice crop is in good condition, and grow- commanding high prices. Sales of sheep are ers anticipate satisfactory results for the sea- being made in New Mexico for fall delivery at son. Hay, sorghum, cane, and other feed high prices. The wool clip is large and market crops are exceptionally good. satisfactory^ though prices are not as good as The fruit crop is considerably lighter than producers expected to receive. last year, owing to the late spring. The vege- Post-office receipts of the nine largest cities table yield is normal and large shipments are of the district show an increase of 15 per cent being received at the present time, with good for May over same month 1915. Figures are prices obtaining. The orange crop of Harris, as follows: May, 1915, $253,535; May, 1916, Brazoria, and Galveston Counties, maintain- $301,917; increase, $48,382. ing an acreage of some 3,000 trees of bearing Record clearings are reported by the same age, is very short. The dry spring caused the cities, and an increase of over 15 per cent is young fruit to drop off after setting, and ashown. All the cities report a substantial incrop of 25 per cent of normal will be considered crease, with one exception. The figures are: good. The strawberry crop of south Texas May, 1915, $128,543,033; May, 1918,- $145,was likewise short, though good prices were 720,245; increase, $19,177,212. had. Building permits issued in seven of the prin- It is estimated that the peach crop of Texas cipal cities of the district show a slight decrease will not exceed 1,500 cars; tomatoes not more both in number and valuation for May, 1916, than 750 cars, which is about 75 per cent of over same month a year ago. The figures are: last year's acreage. The quality, however, is very fine, and prices are good. It is antici- Number. Valuation. pated that the entire season will be more profitable than last year. The onion production of May, 1915 1,102 SI, 434,489 southwest Texas was an average crop at good May, 1916 1,056 1,234,732 Decrease 46 199,757 prices, and the net results were the best for several years. There is little change in the financial situa- There is considerable building under way, tion. It is noted that the discount offerings however, and in almost every instance the with this bank have increased some half million totals for the first five months of the present dollars over a month ago, indicating that mem- year show a substantial increase over the same ber banks are beginning their seasonal de- period last year. mands. The character of paper offered con- Failures over the district for the period sists largely of small notes of farmers, with fall May 15 to June 15, 1915, as against the same Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

JULY 1,1916. FEDERAL RESERVE BULLETIN. 353 period 1916, were as follows: 1915, 78; liabili- DISTRICT NO. 12—SAN FRANCISCO. ties, $483,197. 1916, 53; liabilities, $449,652. While the crops of this section will be less The high prices obtaining for copper have than the average, due to damage by late frost stimulated that industry and business gen- and drought, the farmers and fruit growers will erally in the West, and unusual activity is re- be protected from loss through the greater ported from the mining sections. Operations prices which they will receive for their prodin the oil fields continue on a large scale. ucts. Peach growers, who last year permitted Productive fields are being extended, and their crops to rot on the trees because of the indications are that new fields will be soon unprofitable prices then prevailing, are this year opened. Good prices are had for the output. contracting to sell their product, which will be There is a good demand for lumber and ce- 40 to 60 per cent of the average, at more than ment. Lumber mills in southeast Texas are double the prices prevailing at the same time operating on a five-day-a-week schedule, some last year. of the larger mills running night and day shifts. The wine-grape crop of this section was sold Orders for foreign and coastwise shipments last year at about $10 per ton. Growers are keep the industry active. The wholesale now being offered $14 per ton, which is the grocery business shows a steady improvement, highest price which has been quoted during and a large increase over the same month last eight years. Table and raisin grapes are also year, with collections good. bringing a materially increased price. .Business with wholesalers and retailers is Packers of dried fruits are bidding as high as excellent, and shows an increase of 7 to 15 $40 to $50 per ton for green and 14 cents per per cent. One of the larger retail firms report pound for dried apricots, while the growers are their business will, for the fiscal year ending in most cases holding their crops with the ex- June 30, show a small increase over the best pectation of obtaining $60 per ton for the green year in their history. An improvement in and 15 cents per pound for the dried fruit. The collections, in keeping with the increased prosperity of citrus growers during the past volume, is reported. Mail-order houses report season has encouraged greater activity in the an increase in business of 20 per cent. planting of new orchards than has existed for Transportation lines report a substantial several years past. The damage from frost to increase of from 10 to 12 per cent in freight apples and pears in the Northwest has been and 40 to 50 per cent in passenger traffic. quite serious and general, but the prediction is Improved conditions are reported as to the made that, notwithstanding this, the year's shortage of equipment; in fact, officials report crop will exceed that of 1915. a slight excess, and more equipment than is This year's grain crop of the twelfth district needed. will be from 20 to 30 per cent less than that of Reports from widely separated, but it is last year. This shortage is due to the unusual believed authentic, sources indicate that labor, drought which has prevailed during the spring both skilled and unskilled, was never so in certain parts of California. High winds universally employed, or at so remunerative have shattered the ripening grain before harrates. This is true as to practically every vest could be completed in other sections. A section of the State, except along the Rio material decrease in acreage is reported from Grande border. Harvesting of crops has the Northwest. It is asserted that the carryabsorbed unskilled labor, as well as many of the over from last year's wheat crop in Oregon and skilled workmen who could not find employ- Washington equals 20 to 40 per cent of last ment at their trades. year's crop. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

354 FEDERAL BESEBVE BULLETIN. JULY 1, 1916. Mining has during the past year been the It is, however, reported that there is some most profitable industry within this district. disappointment at the small catch of salmon. The next most profitable one has been that of Results of the operations of this industry in live stock. Recent rains in Idaho have greatly Alaska or other distant waters are not yet benefited the grazing lands. Sheep, wool, and available. cattle are all bringing high prices in all of the Commercial conditions throughout the dis- States of this district. Dairying is also trict are better than normal. The radical prosperous. advance in prices that affected all lines of The revival of the lumber business in Wash- merchandise does not seem to have curtailed ington, Oregon, and California has added the demand, and the volume of business being greatly to the prosperity of these sections. transacted by jobbers and other distributing Many mills which have until recently been agencies is in excess of the same period of 1915. closed are running at capacity. Lack of ships While buying by v/holesalers is now conducted to move the product by water is a handicap. on a more conservative basis than earlier in The strike of longshoremen, which affects all the year, due to the high prices now prevail- Pacific coast ports, is detrimental to water ing, the demand does not seem to have been transportation. affected. Advance orders for dry goods and Mining operations are being conducted at like lines taken by wholesalers for fall delivery full capacity. It is reported that Utah's are very much larger in volume than ever output of minerals during this year will exceed before experienced in this section. the record-breaking production of last year. Collections are reported to be much better Idaho reports that the crest of the wave of than usual. Reports from 17 cities of this prosperity has been reached in that State district show an increase over the same because of the recent decline in the prices of month of last year of 31 per cent in bank zinc, silver, and copper, of which it is a heavy clearings and 32 per cent in building permits producer. for the month of May. The production of petroleum is still increas- Automobile registration for the district ing, with all of the large operators engaged in during the five months of this year is 13 per increasing their outputs in the fields, their cent over the total registrations for the entire refining capacities, and in adding to their year 1915. transportation fleets. The demand for loans has perceptibly in- It is too early to predict the result of this creased in all parts of the district, and the real year's packing season of salmon and tuna fish. estate market is showing signs of revival. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

JULY 1, 1916. FEDERAL RESERVE BULLETIN. 355 DISTRIBUTION OF DISCOUNTS BY SIZES eastern banks; also of $21,000 of domestic trade AND MATURITIES. acceptances likewise bought in the open market by the Atlanta bank and its branch during the Discounts of commercial paper reported by month under consideration. Federal Reserve Banks for the month, of May The total number of bills discounted during totaled $11,195,400, or about 3 per cent less the month was 8,300, compared with 7,031 in than for the month before, and about 8.per April, 1916, and 9,558 in May of 1915. The cent less than for May, 1915. Of the total average size of the paper discounted during the discounts for the month, 58.2 per cent, as month "was about $1,350, as compared with against 68.1 per cent in May, 1915, is credited $1,640 for April, about $1,610 for the first four to the three Southern banks. Philadelphia is months of the present year, and about $1,270 the only other bank which reported total dis- in May, 1915. These averages vary between counts for the month in excess of 11,000,000, $620 for New York, where, however, the total of which 63 per cent was 10-day paper dis- discounts for the month amounted to only counted for local banks. The total discounts $191,300, and $3,240 for Philadelphia, where for the first five months of the present year over 30 per cent of the bills discounted was in were $50,883,600, compared with $59,337,800 denominations of over $10,000. For the three for the corresponding period in 1915. southern banks the average for the month was Commodity paper discounted during the slightly in excess of $1,210. month by five Federal Reserve Banks totaled About 30 per cent of the number, and over $899,400, compared with $1,370,700 for April, one-half of the amount of paper discounted and constituted a little over 8 per cent of the during the month was medium-sized paper in total discounts for the month, compared with denominations of over $1,000 to $5,000. about 12 per cent for April, 18.3 per cent for Small notes (in sizes up to $250) constituted March, and 23.4 per cent for February. Over over 27 per cent of the total number, though 97 per cent of this class of paper was handled less than 3 per cent of the total amount of bills by the Richmond and Atlanta banks, of discounted during the month. About 75 per whose total discounts for the month com- cent of the total number of small bills, as modity paper constituted about 19 and 18 against 65 per cent of the total number of all per cent respectively. Over 97 per cent of all bills, were discounted by the three southern commodity paper was secured by cotton. The banks. Over 11 per cent of the total discounts amount of commodity paper discounted since for the month is represented by largest size January of the present year was $7,647,400, of bills (in excess of $10,000 each). Much larger which 96 per cent is credited to the Richmond shares of this class of paper, viz., 30,2 and 28,3 and Atlanta banks. per cent, are shown for the Philadelphia and Trade acceptances (two-name paper) dis- St. Louis banks. counted during the month by 7 reserve banks Of the total paper discounted during the totaled $298,300, compared with $240,000 in month, 11.2 per cent was paper maturing April, and an average of about $307,000 for the within 10 days at the time of rediscount; 17.6 first four months of the present year. Of the per cent paper maturing after 10 but within total of $1,527,500 of this type of paper dis- 30 days; 23.4 per cent paper maturing after 30 counted since January 1 of the present year, but within 60 days, and 26.4 per cent paper about 74 per cent was handled by the Rich- maturing after 60 but within 90 days. Large mond and Atlanta banks. The monthly total decreases, as compared with May, 1915, figures, is exclusive of $900,000 of trade acceptances are shown for the amounts of 60 and 90 day based upon foreign trade transactions and paper discounted during the month. The dispurchased in the open market mainly by the counts of 60-day paper for the first 5 months Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

356 FEDERAL EESERVE BULLETIN. JULY l, 1916. of the present year show a decrease of 7.5 mil- cent, rediscounted with the Federal Reserve lions, as compared with 1915 figures, and those Banks, as against 606 the month before and 693 of 90-day paper a decrease of 2.4 millions. On in May, 1915. In the three southern reserve the other hand, the amount of 30-day paper districts the number of banks accommodated discounted during January-May, 1916, was for the month was 335 as against 412 in May, about 0.3 million, and the 1916 amount of 1915, and like decreases in the number of redis- 6-month paper about 1.2 millions in excess of counting member banks are noted for the four corresponding 1915 figures. eastern and the San Francisco districts. Con- About 2.4 millions, or over 20 per cent of all siderable increases in the number of rediscountthe bills discounted during the month, was agri- ing banks, as compared with May, 1915, are cultural and live-stock paper, maturing after shown for the Chicago, Minneapolis, and Kan- 90 days at the time of rediscount (6-month sas City districts, where an increasing number paper). The Dallas bank handled almost 40 of banks in the rural districts is rediscounting per cent of this class of paper, which consti- in some volume agricultural and live-stock tuted more than one-half of the bank's total paper. Dallas, with 130 discounting banks out discounts for the month. Kansas City reports of a total of 616 member banks in the district, $314,000 of 6-month paper discounted, or 50 and Richmond, with 115 out of a total of per cent of the bank's total discounts for the 513, report the largest absolute and relative month, while Minneapolis discounted $247,300 number of banks accommodated during the of this class of paper, or over 75 per cent of the month. bank's discounts for the month. During May, 1916, 117 member banks in On the last Friday in May the holdings of Texas secured $1,459,000 of rediscounts; 11 discounted paper totaled about 20 millions, of | banks in Pennsylvania a total of $1,451,000; 31 which 13.2 millions, or about two-thirds, repre- banks in North Carolina a total of $1,254,600; sents the holdings of the three southern banks. 39 banks in South Carolina a total of $917,000, Since the beginning of the year the total of dis- and 41 banks in Georgia a total of $904,800. counted paper on hand decreased about 12 mil- The combined share of the discounts secured lions, or 37 per cent. by the 239 banks in these five States consti- Of the total number of member banks—7,606 tutes over one-half of the aggregate discounts at the end of the month—655, or about 8.6 per reported to the board for the month. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

JULY 1,1916. FEDERAL RESERVE BULLETIN". 357 Commercial paper, exclusive of bankers' acceptances, rediscounted by each of the Federal Reserve Banks, during the month of May, 1916, distributed by sizes. NUMBER OF PIECES AND AMOUNTS, [In thousands of dollars.] To $100 O to v e $ r 2 $ 5 1 0 0 . 0 O t v o e r $ 5 $ 0 2 0 5 . 0 O to v e $ r 1 , $ 0 5 0 0 0 0 . O to v e $ r 2 $ ,5 1 0 ,0 0 0 . 0 O t v o e r $ 5 $ , 2 0 , 0 5 0 0 . 0 O to v $ e 1 r 0 $ ,0 5 0 ,0 0 0 . 0 $1 O 0, v 0 e 0 r 0. Total. Per cent. Banks. a-g it If Boston 4.4 21 17.3 17 30.4 55. S 30.0 20.0 64 157.9 0.8 1.4 $2!,,470 New York 22 15.4 33.9 58 40.0 38 58.5 34.7 7.2 307 191.3 3.7 1.7 620 Philadelphia 1.5 51 8.4 22.6 75 58.1 121 225.4 524.4 269. 7 17 480.0 490 1,590.1 5.9 14.2 3,240 Cleveland 21 3.8 2711.1 29 22.4 62 116.3 55.6 31.4 161 240.6 1.9 2.1 1,490 Richmond^ 34411.9 208 68.4 494 198.6 474 384.5 428 733.1 461.3 248.7 2,239 2,987.1 27.0 26.7 1,330 Atlanta (including N ew Orleans branch) 209 14.1 328 53.1 216 81.6 200 158.9 225 376. 7 515.5 328.6 212.11,367 1,738.6 16.5 15.5 1,270 Chicago 1.9 72 12.7 138 57.4 157 129.8 186 310.7 210.6 31.0 15.0 643 769.1 7.7 6.9 1,200 St. Louis 1.7 31 5.2 47 18.1 50 37.9 61 98.6 182.5 101.7 175. 279 621.5 3.4 5.6 2,230 Minneapolis .1 20 3.3 57 22.5 77 55.0 101 143.2 57.3 34. 10.9 281 327.1 3.4 2.9 1,160 Kansas City 4.1 124 20.6 117 41.5 136 95.6 115 187.0 144.4 80.5 53.7 601 627.4 7.2 5.6 1,040 Dallas 7.6 505 83.8 417 154.3 290 206.0 263 426.9 467.2 354, 5 87.71,763 1,788.0 21.2 16.0 1,010 San Francisco .4 7 1.2 23 9.0| 29 19.7 26 42.5 29.9 38.9 15.1* 105 156.7 1.3 1.4 1,490 Total. 798 44.9 1,453 275.9|1,695 655.01,596 1,223.2 1,64312,749.3806 3,158.5 242 1,769.6 67 1,319.0 8,30011,195.4 100.0 100.0 1,350 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 $ 0 50 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 00 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 2.8 11.0 19.2 35.3 19.0 12.7 100.0 New York 0.8 8.1 17.7 20.9 30.6 18.1 3.8 100.0 Philadelphia .5 1.4 3.7 14.2 33.0 17.0 30.2 100.0 Cleveland 1.6 4.6 9.3 48.3 23.1 13.1 100.0 Richmond .4 2.3 6.7 12.9 24.5 29.5 15.4 8.3 100.0 Atlanta (including New Orleans branch) .8 3.1 4.7 9.0 21.7 29.6 18.9 12.2 100.0 Chicago .2 1.7 7.5 16.9 40.4 27.4 4.0 1.9 100.0 St. Louis .3 .8 2.9 6.1 15.9 29.4 16.3 28.3 100.0 Minneapolis 1.0 6.9 16.8 43.8 17.5 10.7 3.3 100.0 Kansas City .7 3.3 6.6 15.2 29.8 23.0 12.8 8.6 100.0 Dallas .4 4.7 8.7 11.5 23.9 26.1 19.8 4.9 100.0 San Francisco .3 .8 5.7 12.6 27.1 19.1 24.8 9.6 100.0 Total... .4 2.5 5.8 10.9 24.6 28.2 15.8 11.8 100.0 Commercial paper, exclusive of bankers1 acceptances, discounted during May by each of the Federal Reserve Banks, distributed by States and maturities as of date of discount. [In thousands of dollars.] Paper maturing— Number Number Total Districts and States. of b m an e k m s b . er a o c f d c o a b m t a e n m d k o s - W d it a h y in s. 10 w d A a i f t y t h s e i r n b 1 u 3 0 t 0 w d A a i f t y t h s e i r n b 3 u 6 0 t 0 w d A a i f t y t h s e i r n b 6 u 9 0 t 0 A d ft a e y r s 9 . 0 d c c i i s a o c l m o p u m a n p e t e r e - r d. days. days. days. District No. 1—Boston: Connecticut 56 1 3.0 3.6 6.6 Maine 68 Massachusetts 164 1 40.0 50.6 90.6 New Hampshire 56 2 5.5 3.6 6.9 16.0 Rhode Island 17 Vermont * . 48 3 1.0 14.4 19.1 10.8 .45.3 Total 409 7 41.0 72.9 26.3 17.7 157.9 District No. 2—New York: Connecticut . -. 15 New Jersey. . .. 131 4 2.5 13.6 7.6 10.4 3.4 37.5 New(ii York 479 13 17.2 51.4 85.2 153.8 Total. .. 625 17 2.5 30.8 59.0 95.6 3.4 191.3 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

358 FEDERAL KESEKVE BULLETIN. JULY 1,1916. Commercial paper, exclusive of bankers' acceptances, discounted during May by each of the Federal Reserve Banks distributed by States and maturities as of date of discount—Continued. [In thousands of dollars.] Paper maturing— Districts and States. o N f m um em be b r er a N o cc f u o b m m a b n m e k o r s - After 10 After 30 After 60 c c i T o a m o l t p m a a l p er e - r banks. dated Within 10 days but days but days but After 90 discounted. days. within 30 within 60 within 90 days. days. days. days. District No. 3—Philadelphia: Delaware . . 24 1 8.6 8.6 New Jersey 71 3 34.4 38.8 17.1 39.7 .5 130.5 Pennsylvania ' 533 11 962.5 419.1 44.6 18.8 6.0 1,451.0 Total 628 15 996.9 457.9 70.3 58.5 6.5 1,590.1 District No. 4—Cleveland: Kfintuckv 72 5 1.7 14.2 8.5 2 8 27 2 Ohio . . .. 374 13 7.0 42.6 81.9 14.2 52.6 198.3 Pennsylvania 300 5 5.3 2.5 2.3 10.1 West Virginia. 13 1 2.5 2.5 5.0 Total. ... 759 24 7.0 46.8 103.9 25.2 57.7 240.6 District No. 5—Richmond: District of Columbia . 15 Maryland 97 10 5.0 28.4 121.9 1.1 156.4 North Carolina 79 31 63.1 380.3 363.8 409.2 38.2 1,254.6 South Carolina 77 39 8.2 168.7 276.7 330.2 133.2 917.0 Virginia . . 141 29 17.0 145.0 220.8 198.1 8.9 589.8 West Virginia 104 6 3.9 6.8 19.5 39.1 69.3 Total 513 115 92.2 705.8 909.2 1,098.5 181.4 2,987.1 District No. 6—Atlanta: 93 23 39.2 111.9 150.0 114.0 415.1 Florida 56 10 1.0 13.0 19.9 32.4 24.2 90.5 110 41 143 1 286 2 367 8 107 7 904 8 Louisiana 21 3 68.7 22.5 2.4 93.6 MississiDDi . 18 Tennessee - 93 13 34.6 86.6 113.4 234.6 Total 391 90 1.0 229.9 573.3 686.1 248.3 1,738.6 District No. 7—Chicago: Illinois 318 16 8 3 58 6 41 1 34 8 142 8 Indiana . . -. ......... ....... 196 15 25.9 65.5 30 7 34.3 156 4 Iowa • - - - ...................... 349 36 23.4 122.8 64 9 194.7 405.8 Michigan . 77 4 15.0 4.7 8.0 3.0 4.5 35.2 Wisconsin. 51 2 2.3 6.6 20.0 28.9 Total . • 991 73 15.0 62.3 257.2 146.3 288.3 769.1 District No. 8—St. Louis: 64 4 .8 6.9 7.0 7.0 7.6 29.3 Tlliiioi^ 157 15 3.1 17.7 48.9 19.9 89.6 61 3 6.4 6.4 K>ntuckv 68 3 10.0 5.0 12.0 27.0 MississiDDi . ........................ 18 2 14.8 7.0 11.0 32.8 Missouri 81 12 93.0 222.2 49.3 42.8 21.7 429.0 Tennessee ... . ..... 20 1 .3 6.2 .9 7.4 Total.... •— 469 40 94.1 263.2 93.3 121.7 49.2 621.5 District No. 9—Minneapolis: 31 MlTlTK^JOtfl 281 31 2.7 48.2 17.1 108.9 176.9 Montana 68 5 2.3 2.8 .4 23.8 29.3 North Dakota 154 7 1.0 20.7 21.7 Sontli DakotOi 123 13 2.0 1.6 93.9 97.5 Wisconsin 88 2 .7 .5 .5 1.7 Total.... - 745 58 .7 5.5 53.5 20.1 247.3 327.1 District No. 10— Kansas City: Colorado 120 3 1.2 2.7 5.5 9.4 220 15 2.3 17.0 44.1 134.1 197.5 Missouri • 53 6 .9 6.0 10.1 13.2 30.2 "N fill vfi ska. 199 3 4.2 7.7" 9.8 21 7 NAW Mfixico 9 2 2.5 23.4 24.8 35.5 86.2 Oklahoma . . . 304 30 29.9 81.6 55.0 113.8 280.3 Wyoming 34 1 2.1 2.1 Total 939 60 35.6 133.4 144.4 314.0 627.4 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

JULY 1,1916. FEDERAL RESERVE BULLETIN. 359 Commercial paper, exclusive of bankers' acceptances, discounted during May by each of the Federal Reserve Banks, distributed by States and maturities as of date of discount—Continued. [In thousands of dollars.] Paper maturing— Districts and States. o N f b m u a m n em k b s e b . r er a o N c d f c u a o b m t m a e b n d m e . k o r s - Wi d t a h y in s . 10 w d A a i f t y t h s e i r n b 1 u 3 0 t 0 w d A a i f t y t h s e i r n b 3 u 6 0 t 0 W d A a i f y t t h s e r in b 6 u 9 0 t 0 A d ft a e y r s 9 . 0 d c i c s i o a c T l m o o u p m t n a a e l p te r e - d r . days. days. days. District No. 11—Dallas: Arizona 6 Louisiana . ... 10 1 2.9 11.4 13.2 27.5 New Mexico 28 8 2.6 16.2 28.9 89.8 137.5 Oklahoma 33 14 36.5 35.2 92.3 164.0 Texas . 539 107 35.3 236.4 444.0 743.3 1,459.0 Total 616 130 37.9 292.0 519.5 938.6 1,788.0 District No. 12—San Francisco: Alaska - . 1 Arizona 7 California 262 16 20.9 18.8 25.8 38.3 103.8 Idaho 58 3 7.7 3.3 11.0 Nevada . 10 Oregon 82 6 22.3 1.9 14.6 38.8 Utah 23 Washington 78 1 3.1 3.1 Total 521 26 20.9 51.9 27.7 56.2 156.7 RECAPITULATION. [In thousands of dollars.] Paper maturing— Number Number Total Districts and cities. m b e a m n of k b s e . r m o a f o c d b c a o a t m n e k - d s . Wi d t a h y in s. 10 w d A a i f t y t h s e i r n b 1 u 3 0 t 0 w d A a i f t y t h s e i r n b 3 u 6 0 t 0 W d A a i f y t t h s e i r n b 6 u 9 0 t 0 A d ft a e y r s 9 . 0 d co is m p c a o m p u e e n r r t c e i d al . c P e e n r t. days. days. No. 1—Boston... 409 7 41.0 72.9 26.3 17.7 157.9 1.4 No. 2—New York. 625 17 2.5 30.8 59.0 95.6 3.4 191.3 1.7 No. 3—Philadelphia 628 15 457.9 70.3 58.5 6.5 1,590.1 14.2 No. 4—Cleveland 759 24 7.0 • 46.8 103.9 25.2 57.7 240.6 2.1 No. 5—Richmond 513 115 92.2 705.8 909.2 1,098.5 181.4 2,987.1 26.7 No. 6—Atlanta (including New Orleans branch) 391 90 1.0 229.9 573.3 686.1 248.3 1,738.6 15.5 No. 7—Chicago. 991 73 15.0 62.3 257.2 146.3 288.3 769.1 6.9 No. 8—St. Louis 469 40 94.1 263.2 93.3 121.7 49.2 621.5 5.6 No. 9—Minneapolis 745 58 .7 5.5 53.5 20.1 247.3 327.1 2.9 No. 10—Kansas City 939 60 35.6 133.4 144.4 314.0 627.4 5.6 No. 11—Dallas..... 616 130 37.9 292.0 519.5 938.6 1,788.0 16.0 No. 12—San Francisco...- 521 20.9 51.9 27.7 56.2 156.7 1.4 Total for May. 7,606 655 1,250.4 1,969.5 2,961.3 2,390.9 11,195.4 Percent 11.2 17.6 23.4 26.4 21.4 100.0 100.0 Total forj January-May, 1916. 3,300.1 8,708.7 14,090.8 16,901.3 7,882.7 50,883.6 Total for January-May, 1915. 11,735.9 21,607.8 19,291.4 6,702.7 59,337.8 1 Trade acceptances discounted by each Federal Reserve Bank from Sept. 2, 1915, date of first discount, to May 31, 1916. Federal Reserve Bank. T D o 1 e 9 t c a 1 . l 5 3 . t 1 o , May, 1916. 5 f i n o T m r o 1 o f 9 t n i a 1 r t l 6 s h . t s Federal Reserve Bank. T D o 1 e 9 t c a 1 . l 5 3 . t 1 o , May, 1916. 5 f i n o m T r o 1 o f 9 t n i a 1 r t l 6 s h t . s New York $5,700 $5,600 St. Louis , $167,800 $27,600 $140,500 Philadelphia $33,900 37,600 Minneapolis..., 600 600 Cleveland 4,900 10,800 68,500 Kansas City.... 87,800 80,000 Richmond 450,500 126,900 642,500 Dallas 160,800 6,800 51,800 Atlanta (including New Orleans San Francisco. 74,200 5,300 branch) 1,007,100 91,700 486,900 Chicago 8,200 Total. 1,958,800 298,300 1,527,500 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

360 FEDERAL RESERVE BULLETIN. JULY 1, 1916. Commodity paper discounted by each Federal Reserve Bank from Sept. 8, 1915, date of first discount, to May SI, 1916. Federal Reserve Bank. T De o 1 c 9 t . 1 a 5 l . 3 t 1 o , May, 1916. 5 f i m n o T r o o 1 f t n 9 i a t 1 r l h s 6 t . s, Federal Reserve Bank. T D o e 1 c 9 t . 1 a 5 l . 3 t 1 o , May, 1916. 5 f i o m n T r o o 1 f t n i 9 a r t 1 l s h 6 t . s, Richmond $2,881,400 $571,800 $4,282,800 Dallas $239,100 $4,400 $220,200 Atlanta (including New Orleans San Francisco. 37,200 12,000 55,900 branch^ 7,032,300 305,700 3,069,700 St Louis i 99,800 Total 10,315,100 899,400 7,647,400 Minneapolis 25,300 5,500 18,800 Commodity paper discounted by each of the Federal Reserve Banks during the five months ending May, 1916, distributed by classes. Atlanta (including Class. Richmond. N l e e w a n O s r ' - Min l n is e . apo- Dallas. Sa c n i s F co ra . n- Total. branch). Cotton $4,240,400 $3,065,800 $213,200 $300 $7,519,700 Peanuts 39,800 900 40,700 Wheat $15 900 15,900 Maize 1 000 7 000 8,000 Flax ' 3 000 3,000 Hops , 24,000 24,000 Hay 400 400 Beans 500 500 Raisins 7,600 7,600 Miscellaneous 2,600 1,000 24,000 27,600 Total 4,282,800 3,069,600 18,900 220,200 55,900 7,647,400 Amounts of commercial paper, exclusive of bankers' acceptances, held by each Federal Reserve Bank on 6, 1916, distributed by maturities. Paper maturing- Federal Reserve Bank. After 10 After 30 After 60 Total. Percent. Within 10 days, but days, but days, but After 90 days. within 30 within 60 within 90 days. days. days. days. Boston $61,500 $27,200 $33,100 $13,800 $135,600 0.7 New York 71,000 106,800 95,200 48,000 $3,000 324,000 1.6 Philadelphia.. 497,000 126,300 134,600 43,300 10,800 812,000 4.0 Cleveland 55,400 86,100 93,500 17,900 48,200 301,100 1.5 Richmond 1,165,700 ,321,000 1,849,600 689,700 318,400 5,344,400 26.2 Atlanta 460,100 708,000 1,065,800 436,800 357,100 3,027,800 14.9 Chicago 175,700 400,100 569,000 186,300 477,000 1,808,100 8.9 St. Louis 227,200 305,200 168,500 124,000 80,500 905,400 4.4 Minneapolis... 96,100 82,100 148,700 23,500 307,200 657,600 3.2 Kansas City.. 211,300 272,600 452,000 302,700 567,000 1,805,600 8.9 Dallas 540,000 758,400 1,385,700 741,200 1,411,700 4,837,000 23.7 San Francisco 55,600 129,000 91,000 41,700 88,100 405,400 2.0 Total... 3,616,600 4,322,800 6,086,700 2,668,900 3,669,000 20,364,000 100.0 Percent 17.8 21.2 13.1 18.0 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

JOLT 1,1916. FEDERAL EESEEVE BULLETIN. 361 ACCEPTANCES. Acceptances bought in open market held by Federal Reserve Banks as per schedules on file on dates specified, distributed by [In thousands of dollars.] Bankers' acceptances. Bankers' acceptances. Trade Trade Date, Mem- Nonmember banks. b a a c o n c u c e g e p h s t t - a a T c n c o c e t e p a s l t- Date. Mem- Nonmember banks. a b a c o n c u c e g e p h s t t - a a T c n c o c e t e p a s l tber Total. in open bought. ber Total. in open bought. banks. Trust State Private market. banks. Trust State Private market. compa- banks. banks. compa- banks. banks. nies. nies. 1915. 1916. Feb. 22 93 93 93 Feb. 21 17,661 8,194 392 1,841 28,088 460 28,548 Apr. 5 3,653 7,820 10 110 11,593 11,593 Feb. 28 17,436 8,755 408 1,841 28,440 460 28,900 May3 5,038 8,189 10 110 13,347 13,347 Mar. 6 17,182 8,670 408 1,781 28,041 462 28,503 June 7 5,242 4,516 10 192 9,960 9,960 Mar. 13 20,323 10,032 470 1,631 32,456 546 33,002 July 3 4,342 5,267 161 9,770 9,770 Mar. 20.... 20,563 11,280 408 2,467 34,718 678 35,396 Aug. 2 5,350 5,407 20 352 11,129 11,129 Mar. 27.... 21,128 12,864 411 3,078 37, 481 629 38,110 Sept. 6 6,087 6,305 20 472 12,884 12,884 Apr. 3 21,000 13,573 473 3,262 38; 308 722 39,030 Oct. 4 9,000 4,898 132 343 14,373 14,373 Apr. 10 22,239 14,864 476 3,405 40,984 874 41,858 Nov. 1 8,477 4,331 253 204 13,265 13,265 Apr. 17 22,135 15,028 564 3, 442 41,169 1,321 42,490 Dec. 6 12,311 5,172 275 396 18,154 18,154 Apr. 24 23,566 15,196 584 3,504 42,850 1,438 44,288 May! 24, 875 15,400 585 3,430 44,290 1,477 45,767 1916. May 8, 25,058 15, 750 671 3,493 44,972 1,518 46,490 Jan. 3 15,494 7,160 362 822 23, 838 23,838 May 15 26,633 15,372 773 4,960 47, 738 1,635 49,373 Jan. 10 16, 492 8,057 370 938 25,857 25,857 May 22 26,639 16,490 690 6,038 49,857 2,006 51,863 Jan.17 16,908 7,655 425 1,010 25', 998 180 26,178 May'9 26,104 16,541 690 5., 895 49,230 2,037 51,267 Jan. 24 16,348 8,070 363 1,441 26,222 180 26,402 June 5 24,680 17,029 644 7,007 49,360 2,208 51, 568 Jan. 31 15,834 8,174 356 1,510 25;874 180 27,054 June 12 27,354 19,209 622 7.865 55, 050 2,310 57,360 Feb. 7 15,681 7,876 336 1,456 25,349 489 25,838 June 19 32,011 19. 490 560 9; 067 61,128 2,054 63,182 Feb. 14 17,581 7,985 347 1,851 27, 764 528 28,292 June 26 33,155 18,722 552 11,009 163,438 21,958 65,396 1 Of the total of $63,438,000 there were $561,000 of trust company acceptances, $62,000 of State bank acceptances, and 11,725,000 of private banks' acceptances which bore the indorsement of member banks. 2 Of the above total ($1,958,000), $229,000 were indorsed by member banks. Amounts of acceptances held by the several Federal Reserve Banks at close of business on Fridays, May 26 to June 23, 1916, [In thousands of dollars.] 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 - . la A nt t- a. c C a h g i o - - Lo S u t. is. M ap i o n l n is e . - K C a i n ty sa . s Dallas. F c S i r s a a c n n o - . Total. Within 10 days: May 26 920 2,462 1,273 55 238 329 40 182 142 211 5,852 June 2 3 044 2 819 1,246 231 130 282 134 183 215 222 8,506 June 9 . . . 1,435 2,285 1,226 509 270 373 218 163 57 266 6,802 June 16 1,196 4,492 1, 358 224 481 179 402 170 136 433 9,400 June 23 870 5,296 1,764 550 481 178 316 403 109 172 614 10,753 From 11 to 30 days: May 26 4,242 4,079 2,245 650 302 730 399 342 166 586 13,741 June 2 . 2,085 5,888 2,537 567 485 634 500 336 224 627 14,364 June 9 1,515 6,627 2,680 916 481 279 862 606 265 312 1,373 15,916 June 16 895 5,460 2,454 970 325 179 962 625 265 233 1,160 13,5?8 June 23 209 3,382 2,098 468 320 57 814 465 236 217 697 8,963 From 31 to 60 days: May 26 934 7,831 3,263 1,172 806 211 1,158 1,116 339 472 1,381 18, 663 June 2 1,690 6,339 3,063 1,324 325 459 1,352 1,168 408 537 1,791 18,456 June 9 3,373 5,255 3,330 1,194 325 461 1,377 1,142 617 624 1,445 19,143 June 16. 4,832 6,108 3,853 1,775 474 1,657 1,258 770 674 2,096 23,497 June 23 5,874 7,009 3,548 2,087 520 1,777 1,402 764 690 2,976 26,64? From 61 days to 3 months: May 26 4,238 3,223 1,955 914 488 842 584 518 498 1,193 14,453 June 2 3 419 3 232 1 748 922 38 698 522 416 336 836 12,167 June 9 4,181 5,518 2,168 1,160 779 738 719 283 168 612 16,326 June 16 .. 4,314 6,027 2,549 1,190 793 914 1,223 537 125 851 18,523 June 23 5,221 7,655 2,884 1,396 804 985 1,387 690 38 1,532 22,592 Total acceptances held: May 26 10,334 17,595 8, 736 2,791 806 1,239 3,059 2,139 1,361 1,278 3,371 52,709 June 2 10,238 18,278 8,594 3,044 806 1,112 2,966 2,324 1,343 1,312 3,476 53,493 June 9 10,504 19,685 9,404 3,779 806 1,789 3,350 2,685 1,328 1,161 3,696 58,187 June 16 11,237 22,087 10,214 4,159 806 1,625 3,935 3,435 1,742 1,168 4,540 64,948 June 23 . . . 12,174 23,342 10,294 4,501 801 1,559 3,892 3,657 1,799 1,117 5,819 68,955 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

362 FEDERAL RESERVE BULLETIN. JULY 1,1916. 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 five months ending May, 1916. [In thousands of dollars.] Atlanta Acceptances maturing- Boston. Y N o e r w k. P p d h h e i l i l - a a . - C la l n ev d e . - m R o ic n h d - . i ( O n in g r c le N lu a e d n w - s Chi- Lo S u t i . s. n M o e l a i i n s p . - - C K s i a a t s n y - . D la a s l . - F c S i r s a a c n n o - . sy T s f o t o e t r a m l . branch). Within 30 days: Calendar year 1915. 497 1,246 101 156 103 61 2,980 January, 1916 48 587 64 6 734 February, 1916 909 277 50 50 125 1,453 March, 1916 680 741 1,454 April, 1916 23 1,000 1,029 May, 1916 128 1,382 20 220 49 2,207 Total.. 673 3,853 4,095 215 76 227 176 103 66 78 50 245 9,857 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 55 13 1,204 February, 1916 41 313 36 30 116 50 22 13 654 March, 1916 98 520 1,835 70 18 150 146 44 151 107 3,139 April, 1916 235 765 335 214 214 478 137 153 115 277 3,403 May,1916 99 925 510 315 481 14 166 327 126 300 3,345 Total- 2,712 5,521 4,223 1,417 961 265 2,005 1,077 553 1,460 20,802 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 2,419 52,808 January, 1916 2,681 2,686 151 267 300 489 357 200 151 304 7,586 February, 1916 3,686 4,157 396 395 656 143 194 197 420 10,309 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 May,1916 3,633 4,010 2,217 1,397 962 1,074 502 1,638 16,360 Total- 28,881 45,732 13,008 5,438 250 1,354 8,796 3,855 2,861 3,133 6,147 119,455 Total acceptances bought: Calendar year 1915 14,105 25,834 7,565 2,963 250 72 5,782 1,801 1,455 3,230 64,845 January, 1916 2,881 3,894 194 373 300 768 400 226 215 323 9,524 February, 1916 3,727 5,379 709 475 41 65 772 193 228 219 50 558 12,416 March, 1916 6,011 8,178 4,759 649 15 439 955 501 409 566 22,918 April, 1916 1,732 6,478 3,990 898 480 448 1,572 739 534 440 1,188 18,499 May,1916 3,860 5,343 4,109 1,712 501 522 1,128 1,401 628 721 1,987 21,912 Total.. 32,266 55,106 21,326 7,070 1,287 1,846 10,977 5,035 3,480 3,819 50 7,852 150,114 Distribution of bills bought in open market by all the Federal Reserve Banks during the month of May, 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. Per cent. II Member banks 103 $326,985 $659,010 107 $1,815,371 26 $1,014,347 20 $1,868,805 1112,767,980 348 $8,452,498 38.6 Trust companies 164 501,992 740,698 113 2,519,724 1,355,096 25 2,815,045 " 830,318 459 8,762,873 40.0 State banks 7 28,340 6 80,315 41,011 14 149,666 .7 Private banks 22 20 156,776 54 1,058,629 804,559 1,014,567 522,501 131 3,625,854 16.5 Total bankers1 acceptances. 296 926,139 192 1,556,484 280 5,474,039 106 3,215,013 5,698,417 22 4,120,799 958120,990,891 95.8 Trade acceptances.. - 39 86,752 27 198,740 486,386 47,867 100,831 101 2 920,576 4.2 Total bills bought in open market 335 1,012,891 219 1,755,224 312 5,960,425 108 3,262,880 62 5,698.417 4,221,630 1,059 21,911,467 100.0 Percent 4.6 8.0 27." 14.9 26.0 19.3 100.0 Total, 5 months ending May, 1916 1,353 4,138,784 1,113 9,072,806 1,394 25,621,025 40615,387,063 19416,389,221 14,660,078 4,53185,268,977 1 Of the above total, bankers' acceptances totaling $20,369,491 were based on imports and exports and $621,400 on domestic trade transactions. 2 Of the above total, trade acceptances totaling $899,584 were drawn abroad on importers in the United States and indorsed by foreign banks, while $20,992 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

JULY 1,1916. FEDERAL RESERVE BULLETIN. 363 Amount of short-term investments (municipal warrants) held by each of the Federal Reserve Banks at close of business on Fridays, May 26 to June 23, 1916, distributed by maturities. [In thousands of dollars.! Warrants 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 - . la A n t t - a. c C ag h o i- . Lo S u t. is. M ap i o n l n is e . -K C an it s y a . s Dallas. F S r a an n - T f o o t r al cisco. system. Within 10 days: May26.. 1,646 104 1,636 2,935 1,052 660 358 605 8,996 June 2 243 8,460 1,025 1,959 1,418 674 786 886 958 16 409 June 9 13 230 1,500 4 371 409 2,527 June 16 50 1 000 1 050 June 23 . .. 310 276 16 50 52 75 479 136 1 394 From 11 to 30 days: May 26 ... ..... 89 13 495 2 525 397 50 25 396 528 787 18 292 June2 .... 270 331 1,776 18 50 25 50 724 96 3,346 June 9 360 126 1,276 16 50 47 75 479 111 2,540 June 16 310 126 305 708 50 ,52 75 479 25 138 2,268 June 23 151 54 697 275 25 277 1,479 From 31 to 60 days: May 26............ 217 126 330 29 50 322 50 453 25 386 1,988 June 2 ... 31 318 197 458 503 49 37 68 361 2 022 June 9..... 31 318 200 478 481 49 37 68 340 2,002 June 16 31 318 173 98 481 49 37 68 338 1,593 June 23 31 446 173 118 231 48 63 68 88 1,266 From 61 to 90 days: May 26 21 421 169 1,969 206 49 63 68 63 3,029 June 2 .. 153 26 46 250 25 25 25 550 June 9 .. 40 2,065 224 2,051 10 309 25 25 25 4,774 June 16 60 2,134 291 2,197 10 447 194 112 36 146 5,627 June 23 * 110 2,231 270 2,378 10 472 210 87 36 162 5,966 From 91 days to 6 months: May 26.. .. . .. 2,272 3,058 951 1,646 10 2,289 573 506 329 1,009 12,643 J J u u n n e e 2 9 r 2 2 , , 2 2 3 7 2 2 3 1, , 9 1 1 1 9 6 1,0 9 0 9 4 1 3 1 , ,4 4 4 1 2 6 10 2 2 , ,0 0 8 9 9 1 5 6 7 2 3 8 5 55 0 6 6 3 3 2 2 9 9 1 1 , , 0 0 0 5 9 0 1 1 4 1 , , 3 2 1 5 1 1 June 16.. . 2,219 2,049 1,018 1,514 2,282 558 591 293 1,004 11,528 June 23 2,169 1,898 1,108 1,378 2,372 608 610 301 1,084 11,528 Total municipal warrants held: May 26 4,245 17,100 4,079 5,677 60 5,802 1,749 2,078 1,308 2,850 44,948 June 2 ... 2,816 12,378 4,015 5,897 60 4,285 1,346 2,078 1,308 2,449 36,632 June 9 2 676 4 658 4,204 3,991 60 2,928 752 1,468 422 1,935 23,094 June 16 . 2 670 4 627 2,787 4,517 60 3,262 876 1,219 422 1.626 22,066 June 23 .... 2,620 4,726 1,881 4,587 60 3,402 941 1,239 430 1*747 21,633 Total investment operations of each Federal Reserve Bank during the month of May, 1916 and 1915. [In thousands of dollars.] Bills bought in open United States bonds and Treasury Total investment Bills market. Municipal warrants bought. notes. operations. discounted Bank. b m a b f e n o e m r k r s - . a a B c n e c a c r e n ' e s p k s t - . - a a T 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 ce p n e t r . 3 ce p n e t r . 4 ce p n e t r . n 1- o y t e e a s r . Total. 1916 1915 Boston 157.9 3,813.9 46.4 3,860.3 1,544.7 660.2 14.0 2,218.9 5.0 5.0 6,242.1 1,493.0 New York 191.3 5,133.0 209.6 5,342.6 1,275.7 381.7 1,657.4 940.0 1940.0 8,131.3 2,710.2 Philadelphia 1,590.1 3,955.9 153.2 4,109.1 658.3 203.5 1.0 6,562.0 1,181.6 Cleveland 240.6 1,651.5 60.2 1,711.7 737.0 229.2 2.1 968.31,412.0 145.0 225.0 2 1,782.0 4,702.6 1,311.3 Richmond 2,987.1 501.1 501.1 310.0 310.0 3,798.2 3,580.8 Atlanta 1,738.6 501.4 ' *2i.*6 522.4 1.0 1.0 2,262.0 2,238.8 Chicago 769.1 1,127.7 1,127.7 1,208.8 152.7 1,361.51,330.0 1,330.0 4,588.3 1,080.5 St. Louis 621.5 1,401.0 1,401.0 333.9 178.2 512.1 2,534.6 651.9 Minneapolis 327.1 627.8 627. ~ 356.6 101.7 458.3 970.0 40.0 17090.5* 2,503.7 448.0 Kansas City 627.4 720.6 720. 205.8 101.8 307.6 522.6 15.0 537.6 2,193.2 629.8 Dallas 1,788.0 25.0 25.0 1,813.0 2,484.7 San Francisco 156.7 1,557.0 430.2 1,987.2 454.0 178.3 632.3 92.5 92.5 2,868.7 2,431.9 Total: May, 1916.... 11,195.4 20,990.9 920.6 21,911.5 6,774.8 2,187.3 17.-1 8,979.25,608.1 225.5 280.0 6,113.6 .48,199.7 May, 1915.... 12,145.7 2,865.0 2,865.0 4,946.8 10.0 275.0 285.0 20,242.5 5 months ending May 31, 1916 50,847.:182!,,219.3 3,049.7 85,269.0 46»,1, 91977.0. 2,650.2 150.148,997.3 33,621.1 3,187.88 4,108.0 50.040,966.98 226,080.38 5 months ending May 31, 1915 59,337.1817',,905.0 17,905.0 24,552.8 5,571.751,345.0 6,916.75 108,712.35 1 Sold $1,300 of 3 per cent conversion bonds of 1946. 2 Sold $30,000 of 4 per cent bonds of 1925. s Sold $1,100 of 3 per cent conversion bonds of 1946. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

364 FEDERAL RESERVE BULLETIN". JULY 1, 1916. FEDERAL RESERVE BANK STATEMENTS. Resources and liabilities of the Federal Reserve Banks and of the Federal Reserve System at close of business on Fridays, June 2 to June 23, 1916. RESOURCES. [In thousands of dollars.] Boston. Y N o e r w k. d P el h p i h la i - a. C la le n v d e . - m R o ic n h d - . la A n t t - a. Chicago. Lo S u t. is. M ap i o n l n is e . - K C a i n ty sa . s Dallas. F S r a an n - T f o o t r al cisco. system. Gold coin and certificates in vault: June 2 6,635 139,848 9,508 12,207 5,056 6,304 36,837 6,147 6,284 4,211 3,828 5,388 242,253 June 9 6,534 152,385 9,624 12,466 5,053 5,855 37,875 5,818 6,302 4,248 3,803 5,481 255,444 June 16 6,575 156,824 8,879 12,505 5,036 6,285 40,254 5,550 6,432 4,249 3,809 5,654 262,052 June 23 6,055 156,378 9,087 12,785 5,049 6,220 42,939 4,974 6,455 4,225 5,735 5,741 265,643 Gold settlement fund: June 2 12,307 9,374 12,114 11,174 13,136 4,589 8,610 2,142 4,188 6,929 8,325 9,443 102,331 June 9 13,266 4,718 16,485 10,961 13,166 4,133 7,511 1,810 4,427 8,560 8,854 9,590 103,481 June 16 14,216 3,678 12 424 11,731 13 851 4,880 8,315 3,368 4,564 8,344 8 811 9 919 104 101 June 23 14,430 4,055 13,287 11,302 14,663 5,392 4,562 6,394 5,628 8,181 9,055 9,152 106,101 Gold redemption fund: June2. .. ... .. 5 250 50 62 451 469 200 34 30 57 175 10 1,793 June 9 5 250 50 42 420 449 200 17 30 62 168 10 1,703 June 16 .. 5 250 50 36 417 490 200 104 30 78 163 10 1,833 June 23 5 250 50 32 410 483 200 88 30 79 257 10 1,894 Legal-tender notes, silver, etc.: June 2 32 6,349 561 1,050 182 429 2,305 1,105 748 159 919 16 13,855 June 9 186 11,080 436 1,034 170 527 1,707 1,049 757 160 932 17 18,055 June 16 . 171 5,818 276 1,089 193 598 2,646 1,032 690 167 934 8 13,622 June 23 17 7,762 181 1,126 204 542 1,777 1,050 695 145 518 9 14,026 Five per cent redemption fund against Federal Reserve Bank notes: June 2 400 50 450 June 9 . . .. 400 50 450 June 16 400 50 450 ••" June23... 400 50 450 Total reserve: June 2 18,979 155,821 22,233 24,493 18,825 11,791 47,952 9,428 11,250 11,356 13,247 14,857 360,232 June 9 19,991 168,433 26,595 24,503 18,809 10,964 47,293 8,694 11,516 13,030 13,757 15,098 378,683 June 16 . . 20,967 166,570 21,629 25,361 19,497 12,253 51,415 10,054 11, 716 12,838 13,717 15,591 381,608 June 23 20,507 168,445 22,605 25,245 20,326 12,637 49,478 12,506 12,808 12,630 15,565 14,912 387,664 Bills discounted—members: June 2. 185 314 638 269 5,176 2,799 2,208 784 693 1,709 4,716 404 19,895 June 9 403 415 452 274 5,310 2,751 1,993 732 750 1,793 4,867 416 20,156 June 16 338 404 589 279 5,313 2,792 1,808 577 817 1,907 5,202 401 20,427 June 23 279 433 615 270 5,257 2,774 1,921 571 876 1,944 5,384 426 20,750 Bills bought in open market: June 2 10,238 18,278 8,594 3,044 806 1,112 2,968 2,324 1,342 1,312 3,476 53,492 June 9 10,504 19,685 9,404 3,779 806 1,789 3,350 2,685 1,328 1,161 3,696 58,187 June 16 11,237 22,086 10,214 4,159 806 1,626 3,935 3,435 1,742 1,168 4,540 64,948 June 23. 12,174 23,341 10,294 4,501 800 1,559 3,892 3,657 1,799 1,117 5,819 68,953 One-year Treasury notes: June 2 250 1,532 462 456 350 380 350 410 4,190 June 9. .... 250 1,532 462 456 350 380 350 410 4,190 June 16 250 1,532 462 456 350 380 350 410 4,190 June 23 250 1,532 462 456 350 380 350 410 4,190 United States bonds: June 2.. .^ 3,082 3,488 3,538 6,352 1,605 1,684 9,752 2,959 3,378 9,678 2,866 3,609 51,991 June 9 3 082 3,488 3,538 6,502 1,605 1,684 9,753 2,959 3,427 9,678 2,866 3,609 52,191 June 16 3,082 3,488 3,538 6,706 1,605 1,684 9,753 2,959 3,512 9,828 3,111 3,609 52,875 June 23 3,082 3,463 3,538 6,706 1,605 1,684 9,753 2,959 3,512 9,853 3,111 3,609 52,875 Municipal warrants: June 2 2,816 12,379 4,015 5,897 60 4,285 1,346 2,078 1,308 2,449 36,633 June 9 2 676 4,658 4,204 3,991 60 2,928 752 1,469 422 1,935 23,095 June 16 2 670 4 628 2 787 4 517 60 3 262 876 1 219 422 1 626 22 067 June 23 2^620 4,726 1,881 4,587 60 3,401 941 1,239 430 1,747 21,632 Federal Reserve notes, net: June 2 912 13,795 135 333 1,534 1,635 1,077 1,901 2,760 24,082 June 9 799 13,833 68 308 1,629 1,695 1,119 1,965 2,507 23,923 June 16 830 13 984 736 303 1,643 1,729 1,228 1 909 2 057 24 491 June 23 965 13,718 402 327 1,728 1,700 1,220 844 2,109 23,013 Due from other Federal Reserve Banks, net: June 2 4,694 3,530 572 1,543 1,065 7,026 2,543 1,174 1,579 751 1,420 115,300 June 9 . .. 4,615 2,579 2,305 1,063 6,998 4,237 1,379 1,102 325 2,386 117,750 June 16 5 373 4,771 775 1,618 839 4,901 3,800 946 817 1,843 1 21,365 June 23 4,759 4,514 1,194 934 520 6,585 1,494 848 1,870 21.2 1,789 119,287 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

JULY 1, 1916. FEDERAL RESERVE BULLETIN. 365 Resources and liabilities of the Federal Reserve Banks and of the Federal Reserve System at close of business on Fridays, June 2 to June 23, 1916—Continued. RESOURCES—Continued. [In thousands of dollars.] Boston. Y N o e r w k. d P el h p i h la i - a. C la le n v d e . - m R o ic n h d - . la A n t t - a. Chicago. Lo S u t. is. M ap i o n l n i e s. - K C a i n ty s . as Dallas. F c S i r s a a c r n o i - . sy T s f o o t t e r a m l . All other resources: June 2 22 3,622 38 551 116 1,106 709 398 120 470 1,212 118 8,482 June 9 35 353 18 303 127 1,253 602 416 121 521 1,210 207 5,166 June 16 79 395 39 412 172 1,111 169 382 139 466 1,739 135 5,538 June 23 92 293 35 344 173 1,141 432 336 108 391 904 138 4,387 Total resources: June 2 41,178 209,229 43,183 41,511 28,587 21,441 76,533 21,239 22,286 28,222 22,842 29,093 574,747 June 9 42,355 212,397 44,741 42,239 29,478 21,483 74,612 21,974 22,305 28,517 23,075 29,854 583,791 June 16 44,826 213,087 44,765 42,512 29,527 22,298 77,272 23,691 22,350 28,256 23,819 29,802 597,887 June 23 44,728 215,951 44,346 43,174 29,611 22,393 77,162 24,064 22,384 29,045 25,226 30,549 603,201 LIABILITIES. [In thousands of dollars.] Boston. Y N o e r w k. d P el h p i h la i - a. C la le n v d e . - m R o ic n h d - . la A n t t - a. Chicago. Lo S u t. is. M ap i o n l n i e s. - K C a i n t s y a . s Dallas. F c S i r s a a c n n o - . sy T s f o o te t r a m l . Capital paid in: June 2 4,925 11,281 5,216 5,966 3,354 2,469 6,672 2,787 2,576 3,004 2 675 3,933 54,858 June 9 4,925 11,281 5,216 5,966 3,355 2,469 6,673 2,789 2,576 3,005 2,675 3,933 54,863 June 16 4,925 11,281 5,216 5,966 3,355 2,469 6,673 2,790 2,576 3,005 2,675 3,933 54,864 June 23 . . .. ; 4,925 11,281 5,216 5,966 3,357 2,468 6,673 2,790 2,577 3,001 2,676 3,933 54,863 Government deposits: June 2 2,915 10,292 3,667 966 6,687 7,892 5,718 2,253 708 847 5,756 2,299 50,000 June 9 ... 3,146 10,821 4,112 786 7,088 7,815 5,299 2,642 739 1,064 5,911 2,155 51,578 June 16 . ... 3,433 12,757 4,392 824 7,029 8,266 5,341 2,968 786 1,214 6,055 2,686 55,751 June 23 3,867 15,681 5,680 1,251 7,580 8,646 6,291 3,562 734 1,560 6,185 3,462 64,499 Reserve deposits, net: June 2 33,282 177,059 34,300 34,579 14,406 10,966 64,143 16,199 19,002 21,904 11,721 22,861 460,422 June 9 34,218 182,733 33,733 35,487 14,734 11,079 62,640 16,543 18,990 21,950 11,907 23,766 467,780 June 16 36,397 184,776' 35,150 35,722 14,899 11,444 65,258 17,933 18,988 21,560 11,973 23,183 477,283 June 23 35,857 183,557 33,438 35,957 14,593 11,161 64,198 17,712 19,073 21,999 11,914 23,154 472,613 Federal Reserve notes, net liability: June 2 4,086 736 2,690 7,512 June 9 4 243 768 2,582 7,593 June 16 4*181 751 3,071 8,003 June 23 4,015 762 4,451 9,228 Federal Reserve bank notes in circulation: June 2 1,731 1,731 June 9 1,730 1,730 June 16 1,726 1,726 June 23 1,723 1,723 Due to other Federal Reserve Banks, net: June 2 10 597 June 9 7,562 1,677 June 16 . . - 4,273 45 June 23 5,432 All other liabilities: Tune 2 56 54 114 224 66 3 58 120 247 Tune ifj 71 7 63 119 260 Tune 23 79 12 66 118 275 Totalliabilities: June 2 41,178 209,229 43,183 41,511 28,587 21,441 76,533 21,239 22,286 28,222 22,842 29,093 574,747 June 9 42,355 212,397 44,741 42,239 29,478 21,483 74,612 21,974 22,305 28,517 23,075 29,854 583,791 June 16 44,826 213,087 44,765 42,512 29,527 22,298 77,272 23,691 22,350 28,256 23,819 29,802 '597,887 June 23 44,728 215,951 44,346 43,174 29,611 22,393 77,162 24,064 22,384 29,045 25,226 30,549 603,201 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

366 FEDERAL RESERVE BULLETIN. JULY 1, 1916. Circulation of Federal Reserve notes at close of business on Fridays, June 2 to June 28, 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 S r a an n - T f o o t r al cisco. system. Federal Reserve notes issued to the bank: June 2 10,510 74,399 6,315 10,394 10,272 14,383 3,667 6,929 13,121 9,319 15,049 9,859 184,217 June 9 10,413 70,653 6,122 10,105 10,108 14,345 3,658 6,893 13,098 9,299 14,924 9,853 179,471 June 16 10,391 70,447 7,201 10,090 10,069 14,255 3,655 6,878 13,089 9,231 14,724 9,772 179,802 June 23 10.332 70,089 7,036 9,859 14,166 3,649 6,840 12,172 9,231 13,827 9,756 176,955 Federal Reserve notes in hands of bank: June 2 912 13,795 135 333 534 1,534 1,635 1,077 1,901 349 617 2,760 25.582 June 9 799 13,833 427 1,629 1,695 1,119 1,965 317 725 2,507 25,392 June 16 830 13,984 736 303 1,643 1,729 1,228 1,909 334 101 2,057 25,343 June 23. 965 13,718 402 327 505 1,728 1,700 1,220 844 323 76 2,109 23,917 Federal Reserve notes in circulation: June 2 60,604 6,180 10,061 9,738 12,849 2,032 5,852 11,220 8,970 14,432 7,099 158,635 June 9 9,614 56,820 6,054 9,797 9,681 12,716 1,963 5,774 11,133 8,982 14,199 7,346 154,079 June 16 9,561 56,463 6,465 9,787 9,580 12,612 1,926 5,650 11,180 8,897 14,623 7,715 154,459 June 23 9,367 56,371 6,634 9,671 9,354 12,438 1,949 5,620 11,328 13,751 7,647 153,038 Gold and lawful money deposited with or to the credit of the Federal Reserve Agent: June 2 10,510 74,399 6,315 10,394 5,652 14,383 3,667 6,929 13,121 8,234 11,742 175,205 June 9 10,413 70,653 6,122 10,105 5,438 14,345 3,658 6,893 13,098 8,214 11,617 9,853 170,409 June 16 10,391 70,447 7,201 10,090 5,399 14,255 3,655 6,878 13,089 8,146 11,552 9,772 170,875 June 23 10,332 70,089 7,036 5,339 14,166 3,649 6,840 12,172 8,146 9,300 9,756 166,823 Carried to net assets: June 2 912 13,795 135 333 1,534 1,635 1,077 1,901 2,760 24,082 June 9 799 13,833 68 1,629 1,695 1,119 1,965 2,507 23,923 June 16 830 13,984 736 1,643 1,729 1,228 1,909 2,057 24,419 June 23 965 13,718 402 327 1,728 1,700 1,220 844 2,109 23,013 Carried to net liabilities: June 2 4,086 736 2,690 7,512 June 9 4,243 768 2,582 7,593 June 16 4,181 751 3,071 8,003 June 23 4,015 762 4,451 9,228 Statement of Federal Reserve Agents7 accounts at close of business on Fridays, June 2 to June 23, 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 ty sa . s Dallas. c F S i r s a a c n n o - . sy T s f o o te t r a m l . Federal Reserve notes: Received from Comptroller— June 2 20,380 119,240 15,480 13,360 17,000 20,400 9,380 9,600 19,000 13,000 23,580 13,320 293,740 June 9.. 20,380 119,240 15,480 13,360 17,000 20,400 9,380 9,600 19,000 13,000 23,580 13,320 293,740 June 16 20,380 119,240 15,480 13,360 17,000 20,400 9,380 9,600 19,000 13,000 23,580 13,320 293,740 June 23 20,380 119,240 15,480 15,160 17,000 20,400 9,380 9,600 19,000 13,000 23,580 13,320 295,540 Returned to Comptroller— June 2 2,690 27,041 3,072 1.266 3,328 1,921 832 909 249 763 1,721 661 44,453 June 9 2,787 30,787 3,265 1,555 3,542 1,959 841 945 272 1,846 667 49,249 June 16 2,809 30,993 3,299 1,570 3,581 2,049 844 281 851 1,912 748 49,897 June 23 2,868 31,351 3,464 1,662 3,641 2,138 850 298 851 2,664 764 51,549 Chargeable to Federal Reserve Agent- June 2 „ 17,690 92,199 12,408 12,094 13,672 18,479 8,548 8,691 18,751 12,237 21,859 12,659 249,287 June 9 17,593 88,453 12,215 11,805 13,458 18,441 8,539 8,655 18,728 12,217 21,734 12,653 244,491 ' J J u u n n e e 1 2 6 3 1 1 7 7 , , 5 5 1 7 2 1 8 8 7 8 , , 8 2 8 4 9 7 1 1 2 2 , , 0 1 1 8 6 1 1 1 3 1 , , 4 7 9 9 8 0 1 1 3 3 , , 3 4 5 1 9 9 1 1 8 8 , ,3 2 5 6 1 2 8 8 , , 5 53 3 6 0 8 8 , , 6 6 4 0 0 2 1 1 8 8 , ,7 7 1 0 9 2 1 1 2 2 , , 1 1 4 4 9 9 2 2 0 1 , , 9 6 1 6 6 8 1 1 2 2 , , 5 5 5 7 6 2 2 2 4 4 3 3, ; 9 8 9 4 1 3 In hands of Federal Reserve Agent— June 2 7,180 17,800 6,093 1,700 3,400 4,096 4,881 1,762 5,630 2,918 6,810 2,800 65,070 June 9 7,180 17,800 6,093 1,700 3,350 4,096 4,881 1,762 5,630 2,918 6,810 2,800 65,020 June 16 7,180 17,800 1,700 3,350 4,096 4,881 1,762 5,630 2,918 6,944 2,800 64,041 June 23 7,180 17,800 3,500 3,500 4,096 4,881 1,762 6,530 2,918 7,089 2,800 67,036 Issued to Federal Reserve Bank, net- June 2 10,510 74,399 6,315 10,394 10,272 14,383 3,667 6,929 13,121 9,319 15,049 184,217 June 9 10,413 70,653 6,122 10,105 10,108 14,345 3,658 6,893 13,098 9,299 14,924 9,853 179,471 June 16 10,391 70,447 7,201 10,090 10,069 14,255 3,655 6,878 13,089 9,231 14,724 9,772 179,802 June 23 10,332 70,089 7,036 9,859 14,166 3,649 6,840 12,172 9,231 13,827 9,756 176,955 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

JULY 1, 1916. FEDERAL RESERVE BULLETIN. 367 Circulation of Federal Reserve notes at close of business on Fridays, June 2 to June 23, 1916—Continued. [In thousands of dollars.] Boston. Y N o e r w k. d P el h p i h la ia - . C la le n v d e . - m R o ic n h d - . la A n t t - a. Chicago. Lo S u t. is. M ap i o n l n i e s. - K C a i n ty sa . sDallas. F c S i r s a a c n n o - . sy T s f o o te t r a m l . Amounts held by Federal Reserve Agent: In reduction of liability on outstanding notes— Gold coin and certificates on hand— June 2 9,700 73,117 3,360 9,700 o 2,850 10,120 4,000 9,540 122,387 June 9 9,700 65,817 3,230 9,460 2,850 10,120 4,000 9,540 114,717 June 16. 9,700 65,817 3,330 9,460 2,850 10,120 4,000 9,540 114,817 June 23...... 9,700 65,817 3,330 9,400 2,850 10,220 4,000 8,040 113,357 Credit balances in g o 1 d-redemption fund- June 2 810 1,282 355 694 452 933 357 329 651 534 822 339 7,558 June 9 713 4,836 292 645 338 895 348 393 628 514 797 333 10,732 June 16 691 4,630 461 630 299 805 345 378 619 446 732 322 10,358 June 23 632 4,272 416 598 339 1,166 339 340 602 446 630 406 10,186 Credit balances with Federal Reserve Board— June 2 2,600 5,200 13,450 3,310 3,750 2,350 3,700 1,380 9,520 45,260 June 9 2,600 5,100 13,450 3,310 3,650 2,350 3,700 1,280 9,520 44,960 June 16 3 410 5,100 13,450 3,310 3,650 2,350 3,700 1,280 9,450 45,700 June 23 . 3 290 5,000 13,000 3,310 3,650 1,350 3,700 630 9,350 43,280 As security for outstanding notes- Commercial paper- June 2 4,620 1,085 3,307 9,012 June 9 4,670 1,085 3,307 9,062 June 16 4,670 1,085 3,172 8,927 June 23 4,520 1,085 4,527 10,132 Total- June 2 10,510 74,399 6,315 10,394 10,272 14,383 3,667 6,929 13,121 9,319 15,049 9,859 184,217 June 9 10,413 70,653 6,122 10,105 10,108 14,345 3,658 6,893 13,098 9,299 14,924 9,853 179,471 June 16 10,391 70,447 7,201 10,090 10,069 14,255 3,655 6,878 13,089 9,231 14,724 9,772 179,802 June 23 10,332 70,089 7,036 9,998 9,859 14,166 3,649 6,840 12,172 9,231 13,827 9,756 176,955 Memorandum: Total amount of commercial paper delivered to Federal Reserve Agent— Juno 2 5,132 1,087 4,392 10,611 June 9 5,136 1,099 4,410 10,645 June 16. . . 4.857 1,093 4,816 10,766 June 23 4', 600 1,094 4,884 10,578 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

368 FEDERAL RESERVE BULLETIN. JULY 1, 1916. GOLD IMPORTS AND EXPORTS. Imports of gold, by customs districts, Jan. 1 to June 23, 1916. [In thousands of dollars.] Week ending May 26. Ore and base bullion United States mint or assay office bars . . . .. Bullion rppiipd Foreign coin Total . . Week ending June 2. Ore and base bullion United States mint or assay office bars Bullion refined Total < Week ending June 9. Ore and base bullion United States mint or assay office bars Bullion, refined United States coin Foreign coin Total Week ending June 16. Ore and base bullion United States mint or assayoffice bars Bullion refined Foreign coin Total Week ending June 23. Ore and base bullion United States mint or assay office bars Bullion refined Foreign coin Total. Jan. 1 to June 23. Ore and base bullion. United States mint or assay office bars Bullion, refined United States coin Foreign coin '. Total.. weN dna eniaM .erihspmaH 1 1 2 .kroY weN 28 99 3 130 3 275 278 48 346 15 95 504 37 144 10 191 62 397 71 530 1,140 7,549 115 21,115 29,919 .adirolF 33 33 .snaelrO weN 25 25 8 8 1 1 9 9 14 14 189 5 9 203 .anozirA 21 3 24 3 2 5 13 24 37 6 1 7 13 2 15 322 116 438 .osaP lE • 2 2 68 27 95 .oderaL 12 12 19 19 4 4 133 133 .aksalA 1 1 1 1 73 73 8 307 315 83 307 1 391 .ocsicnarF naS 109 242 351 53 53 70 70 25 25 73 93 166 985 3,009 4,867 8,861 -ilaC nrehtuoS .ainrof 1 1 3 7 10 .notgnihsaW 98 98 50 58 108 97 97 44 120 164 87 69 156 1,532 621 55 2,208 .olaffuB 181 181 101 26 127 36 245 281 5 1 6 202 45 247 597 2,060 837 3,494 .atokaD 13 13 4 4 12 12 4 4 149 149 .nagihciM 55 55 31 .oihO 31 | 58 3 58 3 45 45 928 3 928 3 .ecnerwaL .tS 1 350 181 8 731 9 075 3 8,731 9,609 153 101 8 068 8,430 8,068 8,684 423 245 14,600 14 970 15 4,867 4,962 19,467 20,615 149 1 16,291 16,556 10,220 10,230 26,511 26,936 308 202 18;417 19,330 17,033 17,104 35, 450 36,944 6,133 2,060 74,602 87,075 1 777 1,986 32,664 58,656 .109,043 155,910 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

JULY 1,1916. FEDERAL RESERVE BULLETIN. 369 Exports of gold, by customs districts, Jan. 1 to June 23, 1916. [In thousands of dollars.] Week ending May 26. Ore and base bullion United States mint or assav office bars Bullion, refined: Domestic - .. Foreign UnitpfJ Statp5? coin Foreign coin Total Week ending June 2. TJnitpd Statps mint or assav office bars United States coin Total Week ending June 9. Unitprl States mint or assav office bars Bullion refinod domestic Total Week ending June 16. TTnitpii States TTpnt or assav offic© liars Total Week ending June 23. Ore and base bullion . United States mint or assay office bars Bullion refined domestic United States coin . . . Total Jan. 1 to June 23. Ore and base bullion United States mint or assay office bars.. Bullion, refined: Domestic United States coin Foreign coin Total weN dna eniaM .erihspmaH 2 2 .kroY weN 170 170 560 1,186 1,746 1 201 1,201 845 845 97 2,805 1,009 3,911 758 3,436 1,438 15,887 17,825 39,344 .ociR otroP 15 15 .aksalA 1 1 12 12 .iiawaH • 8 8 1 1 9 9 101 101 .ocsicnarF naS 1 715 4 258 ' 59 6 032 404 390 794 4 4 397 235 632 5 560 701 15,608 63 21,932 ,notgnihsaW 17 35 52 87 2 45 134 .olaffuB 1 10 11 12 12 11 11 2 28 2 32 . - •: i 67 69 218 19 5 378 .atokaD 1 12 13 -uS dna htuluD .roirep 1 1 1 1 1 1 2 .nagihciM • 12 3 15 dna anatnoM .ohadI 1 1 .ecnerwaL .tS 1 5 2 8 1 1 1 1 510 19 5 1,018 1,384 2,936 .tnomreV 1 1 8 758 .latoT 2 1,716 10 5 4,430 60 6,223 17 404 993 1,186 2,600 2 12 1,206 1,220 397 12 1,080 1,489 2 1 125 2,814 1,011 3,953 168 6,898 4,397 1,443 33,456 19,281 65,643 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

370 FEDERAL RESERVE BULLETIN. JULY 1, 1916. EARNINGS ON INVESTMENTS OF FEDERAL RESERVE BANKS. Average amounts of earning assets held by each Federal Reserve Bank during May, 1916, earnings from each class of earning assets, and annual rates of earnings on the basis of May, 1916, returns. Average balances for the month of the several classes of earning assets. B m c i o e ll u m s n r b t e e e d d r i s , s . - Bi m i ll n s a o b r p k o e e u n t g . ht M wa u r n r i a c n ip ts a . l U b S o t n a n i t t d e e s s d . . Total. Boston 3210,671 $10,604,799 $3,347,359 $3,331,839 $17,494,668 New York... 343,947 17,531,379 16,612,635 4,958,226 39,446,187 Philadelphia. 775,309 8,035,855 3,907,956 4,000,000 16,719,120 Cleveland 284,497 2,613,246 5,486,443 6,166,642 14,550,828 Richmond... 5,505,338 715,442 60,406 1,923,581 8,204,767 Atlanta 3,104,352 1,160,861 392 2,033,516 6,299,121 Chicago 1,753,939 3,033,386 5,417,521 9,709,797 19,914,643 St. Louis..... 1,957,389 1,575,967 3,339,000 7,520,442 Minneapolis.. 703,000 1,259,387 1,958,161 3,378,100 7,298,648 Kansas City.. 1,729,852 1,282,297 1,213,472 9,661,177 13,886,798 Dallas 4,698,926 2,862,524 7,561,450 San Francisco 426,000 2,961,000 2,659,000 3,595,000 9,641,000 Total... 20,183,917 51,155,041 42,239,312 54,959,402 168,537,672 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 in r- 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 o B a o u r il p k g l e e h s n t t . p M r a a l u n w n t i s a c . r i- - U b S o n ta n i t t d e e s s d . v A e o ti s p o l t l e m n r i s a n e . - - nt Percent. Per cent. Per cent. Per cent. Per cent. Boston $655.67 $18,220.92 $6,832.89 $6,094.60 $31,804.08 3.67 2.03 2.41 2.16 2.15 New York.... 1,167.93 30,999.48 32,713.78 10,863.17 75,744.36 4.00 2.08 2.32 2.54 2.26 Philadelphia.. 2,487.70 14,007.36 7,880.17 7,593.63 31,968.86 3.78 2.05 2.38 2.24 2.25 Cleveland 1,048.49 4,424.89 12,027.96 12,318.34 29,819.68 4.35 1.99 2.59 2.39 2.44 Richmond 18,805.25 1,889.95 155.93 4,056.72 24,907.85 4.03 3.12 3.05 2.49 3.59 Atlanta 10,087.91 2,469.81 1.33 4,311.02 16,870.07 3.84 2.51 4.00 2.50 3.16 Chicago 6,991.73 5,108.30 10,974.85 18,874.55 41,949.43 4.69 1.98 2.39 2.29 2.48 St. Louis 2,379.10 3,243.60 3,042.99 6,287.73 14,953.42 4.33 1.96 2.28 2.22 2.35 Minneapolis.. 2,969.43 2,091.08 3,906.77 6,451.02 15,418.30 4.99 1.96 2.35 2.26 2.49 Kansas City.. 7,170.56 2,098.80 2,259.00 17,678.90 29,207.26 4.89 1.93 2.20 2.16 2.49 Dallas ,. 16,959.07 4,877.57 21,836.64 4.26 2.00 3.41 San Francisco 1,845.71 "5,"i50.*i7' *5,i44."27 5,967.56 18,107.71 5.10 2.05 2.28 1.99 2.23 Total... 72,568.55 89,704.36 84,939.94 105,374.81 352,587.66 4.24 2.07 2.37 2.26 2.47 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

INDEX. Page. Acceptances, distribution of, by sizes, maturities, Gold bullion, amendment to Act regarding deposit etc 361-363 of 311 Acceptances to 100 per cent 328 Gold imports and exports 368,369 Amendments to Federal Reserve Act proposed by Gold settlement fund 320-322 Federal Reserve Board . 323-327 Audit of 320 Assessment levied for expenses of Board 318,319 Cost of operating 315 Business conditions throughout the 12 Federal Re- Informal rulings of the Board 329 serve districts 333-354 Law Department: Chart showing individual and bank deposits, taken One-year gold notes. 330 from calls of Comptroller 328 Deposit of postal funds in nonmember banks .. 331 Clearing circulars issued by Federal Reserve Banks. 312- Withholding national-bank notes from circula- 315 tion. 332 Clearing house taken over by Boston bank 317 McCormick, Vance C, resignation of, as Class C Commercial failures in May 327 director 309 # Conference of Board with representatives of clearing Member banks granted authority to accept up to 100 houses. 310 per cent. 328 Discounts, distribution oL , 355-360 National-bank charters issued by Comptroller .... 316 Discount rates in effect. 319 " Par " collection, meaning of 310 Earnings on investments of Federal Reserve Banks. 370 Resources and liabilities of Federal Reserve Banks. 364- Federal Reserve Act, amendments to, proposed by 370 Board .. 323-327 Strong, Benjamin, leave of absence granted to..... 315 T Federal Reserve Bank statements. 364-367 United States bonds, conversion of 316 Fiduciary powers granted. . 328 Work of the Board. 309,310 371 o Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis