Federal Reserve Bulletin, 1916-08

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

FEDERAL RESERVE BOARD. EX OFPICIO 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 WTILLIS, 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 shou-ld 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 371 Hearing of Wisconsin Banks ........ .•„. .... 372 Earnings and dividends of Federal Reserve Banks 373 Bill limiting use of words ''Federal" and "reserve " , 373 Bank checks in France 374 Announcement by Federal Reserve Board 374 Suggestions for purchase of brokers' paper 375 National-bank deposits in the United States. 376 Commercial failures during month of June 377 Comments on clearing system 377 New national-bank charters • 379 Fiduciary powers granted 379 Gold settlement fund . 380 Discount rates in effect 383 Earnings and expenses of Federal Reserve Banks 384 Circular regarding section 8 of Clayton Act .. 389 Informal rulings of the board 393 Law department 396 Summary of business conditions 398 Business conditions throughout the 12 Federal Reserve districts 399 Distribution of discounts 418 Acceptances. ......... 423 Federal Reserve Bank statements 426 Gold imports and exports •. 430 Earnings on investments of Federal Reserve Banks 434 Jnterdistrict movement of Federal Reserve notes ° 435 IV Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FEDERAL RESERVE BULLETIN VOL. 2 AUGUST 1, 1916 No. 8 WORK OF THE BOARD. lege of using Federal Reserve Banks as clearing houses for the collection of checks. Not only Activities of the Federal Reserve Board those drawn against other member banks, but during July have covered a wide field. The also a large proportion of those drawn against check clearing and collection plan, announced nonmember banks, may, through this plan, be on May 1, went into operation on Saturday, collected at a minimum of expense to the de- July 15. Preliminary rulings in connection with the exemptions under the Kern amend- positing bank. ment to the Clayton Act have been completed A large number of nonmember State banks and forms and instructions placed in the hands have signified their willingness to remit at full of applying officers and directors of banks. face value for checks drawn against them and Amendments to the Act, recommended by the sent by Federal Reserve Banks for collection. Board, have been under discussion in the Sen- The Board is confident that the United States ate. Discount rates have shown a slightly has now embarked upon a most effective checkupward tendency. The gold settlement fund collection system, the use and appreciation of has been unusually active, due.to the repay- which will continue to grow and enlarge until ment to the Treasury Department of the it becomes universal. As that time approaches $15,000,000 placed in the Federal Reserve the cost of the service can be reduced to a very Banks of Richmond, Atlanta, and Dallas in low figure. September, 1915, and large withdrawals by the A consolidated statement of the 12 Federal Government of funds deposited with the 12 Reserve Banks for the first six months of the Federal Reserve Banks acting as fiscal agents present year shows that earnings were of the Government. Deposits in this fund $1,824,436 and aggregate current expenses for reached, in July, a record total of $168,500,000. the same period $1,019,926. This leaves a While it is early in the operation of the clear- surplus available for dividend distribution of ing plan to give figures showing its actual re- $804,510, or at the rate of 2.9 per cent upon a sults, it is conservative to say that it was total paid-in capital for all the banks of begun very auspiciously. There has been a $54,854,000, reported as at close of business pretty general cooperation from banks and June 30, 1916. All of the Federal Reserve bankers, of which the Board desires to make Banks except St. IJOUIS earned their current acknowledgment. Through the taking over expenses for the first six months of the present of the Boston Clearing House by the Federal year. Five of the banks have already paid 'Reserve Bank of Boston, checks drawn against dividends. any bank in this district, whether a member of Four Federal Reserve Banks have slightly the system or not, are collectible at par, sub- increased discount rates during July. Rates ject, of course, to a charge to cover the actual for bankers7 acceptances have shown a firmer cost of collection and interest upon distant tendency. On trade acceptances, commodity items where immediate availability of funds is paper running 90 days, and commercial paper asked. running 10 days the rate at Philadelphia is 3| All national banks and State bank members per cent; on trade acceptances the rate at Bosof the system may avail themselves of the privi- ton is Si per cent; Chicago has increased its 371 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

372 FEDERAL RESERVE BULLETIN. AUGUST 1, 1916. rate for 60-day commercial paper from 4 per in the Senate, because of the necessity of giving cent to 4J per cent; and since July 24 the fol- first consideration to the appropriation bills, lowing new rates have been in effect at the the time given to Federal Reserve Act amend- Federal Reserve Bank of Kansas City: Com- ments has been limited. There is reason to modity paper and trade acceptances, 4 per anticipate favorable action upon the amendcent; commercial paper running 10 days, 4| ments at an early date. per cent. On August 1 the rate for trade All of those applying for instructions and acceptances at the Federal Reserve Bank of forms to enable them to apply for exemption Cleveland will be increased from 3 per cent to by the Board under the Kern amendment to 3^ per cent for 60-day paper and from 3^ to 4 the Clayton Act have been furnished with such per cent for 90-day paper. information. A large number of applications After carefully considering the advantages of have been received and the work upon them the Federal Reserve System the Corn Exchange has taken a considerable part of the time of Bank of New York made application to be the Board and its counsel. This amendment admitted as a member, and on July 7 favorable provides, in substance, that nothing in the Act action was taken upon the application by the shall prohibit any officer, director, or employee Federal Reserve Board. This bank has a capi- of any member bank, or Class A director of a tal of $3,500,000 and a surplus of $6,991,165.32. Federal Reserve Bank who shall first obtain Almost coincident with the application of the the consent of the Federal Reserve Board, from Corn Exchange Bank was that of the American being an officer, director, or employee of not Trust and Savings Bank, of Birmingham, Ala., more than two other banks, banking associaupon which the Board also took favorable tions, or trust companies which are not in subaction. The capital of the latter bank is stantial competition.with such member bank. $500,000 and its surplus $250,000. The Board The circular sent out by the Board and the has had informal discussion with the repre- forms to be used in making application are to sentatives of several other State banks who be found on another page. are considering the advantages offered by Authority to accept drafts or bills of exmembership in the Federal Reserve System. change up to 100 per cent of their capital and Permission has been granted by the Federal surplus under the Federal Reserve Act has Reserve Board to the National City Bank of been granted by the Board jduring July to the New York to open a branch at Petrograd, National Bank of Commerce, Seattle, Wash., Russia. This permit includes authorization and the Webster and Atlas National Bank, to establish several subbranches or offices in Boston, Mass. Russia. Mr. E. T. Meredith, of Des Moines, Iowa, has resigned as a Class C director in the Federal Hearing of Wisconsin Banks. Reserve Bank of Chicago. Mr. Meredith submitted his resignation because of his nomina- Upon the presentation of new facts to the tion as the candidate of the Democratic Party Board it was voted on July 26 to reopen the for governor of Iowa. This vacancy and that petition filed by certain banks in the State of of a Class C director at the Federal Reserve Wisconsin, asking that they be transferred Bank of. Philadelphia have received the con- from the Minneapolis to the Chicago Federal sideration of the Board, but no elections have Reserve district. An informal hearing of oral resulted. arguments will, therefore, be given by the While there has been interesting considera- Board in Washington on Tuesday, August 8, tion of amendments to the Federal Reserve Act at 3 p. m. New briefs are not necessary, but Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

AUGUST 1, 1916. FEDERAL RESERVE BULLETIN. 373 permission is given to file them if desired. The prospects for earnings in the next few Applications of banks in the northern penin- months are very good. sular of Michigan which desire to intervene in Dividends have been declared by Federal this petition will be considered at the same Reserve Banks as follows: time. Federal Ke- Period cov- Federal Reserve Bank Earnings. serve Bank. Date declared. ered, Novem- Kate. Amount. ber, 1914, to- All the Federal Reserve Banks are now showing earnings in excess of expenses, as will Per cent. Bichmond December, 1915 Dee. 31,1915 5 $151,939.69 be seen by the annexed table showing the rates Do April, 1916 do 1 30,387.65 Atlanta June, 1916 ....do; 129,198.00 of earnings over expenses in the months of Chicago .do Mar. 31,1915 76,155.83 Dallas. j January, 1916.. June 30,1915 65,522.74 May and June and for the six months ending Kansas City....i July, 1916 .....do 66,706.95 June 30, 1916. From this statement it will appear that in the month of May two banks Use of Words "Federal" and "Reserve." earned over 6 per cent on their paid-in capital; three banks earned over 5 per cent, but less In addition to the recommended amendments than 6 per cent; three banks earned over 4 per sent to Congress by the Federal Reserve Board, cent, but less than 5 per cent; two banks earned which were printed in the July number of the over 3 per cent, but less than 4 per cent; two Federal Reserve Bulletin, there has been sent banks earned 2 per cent or less. the following bill introduced by Representative For the month of June the showing is as fol- Glass, chairman of the Committee on Banking lows: Two banks earned over 6 per cent; two and Currency of the House of Representatives, banks earned over 5 per cent; two banks earned intended to limit the use of the words " Federal" over 4 per cent; three banks earned over 3 per and "reserve." The text of the bill follows: cent; two banks earned over 2 per cent; one bank earned less than 2 per cent. A BILL To limit the use of the words "Federal" and "reserve." For the six-months period it will be noted Be it enacted by the Senate and House of Representatives of that three of the banks earned over 5 per cent the United States of America in Congress assembled, That all while three more earned in excess of half of banks, other than Federal Reserve Banks created and their dividends. organized under an act of Congress approved on December twenty-third, nineteen hundred and thirteen, and known as the Federal Reserve Act, and all firms, partnerships, Rate of net earnings, per cent on capital. or corporations doing the business of bankers, brokers, or Federal Reserve Bank of— savings institutions, and all insurance, indemnity, and Six months trust companies are prohibited from using the word May, 1916. June, 1916. ending June 30,1916. "Federal" or the word "reserve" as a portion of the name or title of such bank, corporation, firm, or partnership, and Boston -. 5.2 5.1 4.1 any violation of this prohibition committed after the first 4.2 3.6 2.4 Philadelphia 4.5 4.2 2.9 day of November, nineteen hundred and sixteen, shall Cleveland 3.4 3.8 2.1 subject the party charged therewith to a penalty of $50 Richmond 5.7 5.5 5.3 Atlanta 4.4 4.0 3.9 for each day it is permitted or repeated: Provided, hoivever, Chicago 5.2 2.4 3.5 St Louis .5 1.6 i- .7 That this prohibition shall not apply to corporations or- Minneapolis 3.1 3.3 2.0 ganized prior to December twenty-third, nineteen hun- Kansas City 7.3 7.1 5.1 Dallas . 6.1 6.7 5.3 dred and thirteen, under titles which include the words San Francisco 2.0 2.9 .7 "Federal" or "reserve" or to firms or partnerships doing business prior to that date under such titles. i Deficit. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

374 FEDERAL RESERVE BULLETIN. AUGUST 1, 1916. Announcement by the Federal Reserve Board. The Board has not been informed of the character orform of procedure it is proposed to adopt The attention of the Federal Reserve Board in order to set aside the regulation of May 1. has been called to the fact that a circular dated If any of the member banks feel aggrieved at July 22, 1916, and signed by T. R. Dickson, as this regulation and desire to resort to the courts secretary of a conference of bankers held at there is, of course, no disposition on the part St. Louis, contains the following paragraph: of the Board to interpose any objection to any The administrative committee has decided action they may deem it proper to take. It to bring suit seeking to set aside the Federal desires, however, to correct any impression that Reserve Board's order of May 1 on the general grounds herein outlined. Tne committee un- may have been created that the proposed litigaderstands upon good authority that the pro- tion is a "friendly suit" in the sense that this gosed suit is regarded by the Federal Reserve language is ordinarily used, namely, a suit to •oard in an entirely friendly light. determine some question about which the parties The order referred to is manifestly Circular involved are mutually in doubt. No. 1, series of 1916, which relates to the collec- JULY 28, 1916. tion and clearance of checks. The Board recognizes the right of any member bank to resort to the courts to test the consti- Use of Checks in France. tutionality of any provision of the Federal Re- An interesting communication relating to the serve Act; to procure the court's interpretation more general use of bank checks in France is of any part of the Act, or to question the legalcontained in a report of Commercial Attache ity of any regulation of the Board. Where C. W. A. Veditz, printed in the Daily Bulsuch a course is necessary to remove any doubt letin of Commerce Reports dated July 10, that may exist the counsel for the Board will 1916. cooperate as far as possible in expediting a An extract from the report is given below: hearing in order that the banks and the Board may have the benefit of a judicial determina- The Banque de France is urging a more general use of checks in France, where to-day tion of the question involved. the checking system so well known in the The statement contained in the circular United States is hardly used at all. Practiabove referred to that the proposed suit is cally all transactions are settled by passing regarded by the Federal Reserve Board in an bank notes from hand to hand. This practice entirely friendly light might lead to the con- has led to the issuance of both small and large denominations of bank notes. For ordinary clusion that the Board is in doubt as to its daily purchases, etc., there are the 5, 10, and 20 power to promulgate the regulation in question franc notes, and for large transactions there are and, therefore, welcomes litigation designed to the 1,000-franc notes. settle the question. The fact that such an In a pamphlet of explanations just issued by impression may be created by the circular is the Banque de France the difficulties of the present French system are well pointed out— evidenced by inquiries received from some of the risks of error in counting, the risks of loss the banks as to the attitude of the Board. and of theft, and particularly the surcharging This statement is, therefore, misleading. The of the fiduciary circulation of the country by regulation in question was adopted after the fact that most everyone carries about in deliberate consideration and is intended to his pockets either a few thousand or a few hundred francs, representing for the whole of the carry out one of the important purposes of the country a sum well up in the billions of francs Act, namely, the substitution of one compact which is dead capital, unemployed. Then folclearing system for the many independent col- lows a full description of the use of checks as lection organizations heretofore in force. known in America—opening of the account, Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

AUGUST 1, 1916. FEDERAL RESEKVE BULLETIN. 375 issuance of check books, correct form of checks, Endeavor to get names whose statements etc. One feature described in the pamphlet is show in excess of 2 for 1 to debt. But take somewhat different from the American method: into consideration that in different lines of In order to protect adequately the drawer of a business this proportion will justifiably vary. check that is to be sent through the mails to Avoid names whose statement shows a large another city, and therefore subject to special amount of "bills receivable" (unless the nature risk of loss, the drawer can trace across the face of the business is such that settlement is generof the check two parallel lines (barres trans- ally made by note), this condition indicating cersales), by which sign, under the terms of that customers are slow in settling. the new law, the check can be made negoti- Where statements show "bills receivable," able only at a bank, which bank becomes re- ascertain if the name is in the habit of dissponsible for any payment to a wrongful counting its "bills receivable." holder. Be careful of the very large concerns in small In this connection it is interesting to note towns and the small concerns in large cities, as that the French Minister of Finance announces in neither case can you get proper local bank that hereafter payment made by the French "checking." Government will be largely by check, and that Be careful of names whose business admits of arrangements will be introduced whereby pri- speculation. vate establishments can make payments to the In taking paper secured by warehouse Government by check. receipts, see to it that the collateral is stored in public warehouses. In ease statements are very old—10, 11, or 12 months—don't buy (except the very highest Purchase of Brokers' Paper. class risks) unless the broker will furnish figures showing liabilities in detail at a recent The subjoined suggestions for the purchase date. of brokers' paper are drafted by a hard-headed Watch crop conditions and do not buy names located in or whose customers are and experienced banker who has submitted largely in districts where a crop failure has them to the Board for its information. These made collections slow or the business hazardous. suggestions are not promulgated by the Board Do not buy more than $5,000 of any name as rules, but they are so evidently based upon except the very highest class risks. common sense and experience that they may Insist on a 10-day option on every bill. Return paper invariably where anything well be given a wide publicity: unfavorable develops in the investigation: Don't be influenced by the "rate." Of two Do not renew notes without any additional names of equal quality, of course take the one investigation. that nets the better rate, but never subordinate Make a complete new investigation once a "quality" to "rate." year. Favor generally the concerns dealing in Let each name run off occasionally. staples (such, for instance, as wholesale grocer- Do not take any paper because of the broies, wholesale hardware, and wholesale dry ker's persistence. goods) in preference to those dealing in special- Devote the proper amount of time to the ties or luxuries. purchase of the note in the first instance and In manufacturing concerns also favor those get all the data you want from the broker at producing staples as against those producing the time of purchase. Also get financial statespecialties, the sale of which depends on exten- ment at that time so as to avoid delays. sive advertising and solicitation. Legitimate "receivables" indorsed by a name Avoid dealers in articles which become of good standing should be held in high esteem. unseasonable or go out of style and which The effect of a mortgage on the plant or real would be subject to unusual and severe shrink- estate should be carefully considered, if one age in case of trouble. exists. Do not buy names which, on account of their Periodically look up trade references. small size, are not justified in selling through Ascertain if the name gives personal indorsebrokers. ments at its local banks or secures such paper 53038—16 2 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

376 FEDERAL RESERVE BULLETIN. AUGUST 1, 1916. by receivables or otherwise, in which event The largest actual increase, by geographical insist on the same security. divisions, was shown in the Middle Western Be careful in the case of names whose par- States, which give an increase of 1,773,370 ticular line of business is in a depressed con- depositors, although the Southern States lead dition, and if you buy, be assured that the name in the largest percentage of increase. The is strong enough to weather the depression. number of depositors in the Southern States Insist that broker furnish copy of three last June 30,1910, was 1,272,746. On May 1,1916. annual statements; compare very carefully as this had been increased to 2,814,508, the to sales, profits, dividends, and net worth. increase being 1,541,762, or 121 per cent. The Pacific States increased 592,689, or 117per cent. The New England States show an increase of 388,923, or 84 per cent. The Western States National Bank Deposits in the United States. increased 668,517, or 82 per cent, and the Eastern States show an increase of 1,629,651 Very interesting figures showing the number depositors, or 68 per cent, and increase of depositors in national banks in Pennsylvania leads all the States in the the United States have been gathered by the number of national bank depositors, reporting Comptroller of the Currency. The last figures 2,021,878, an increase since 1910 of 762,738, or 60 per cent. New York shows the next largest covering the number of depositors in such banks number, 1,199,471, an increase of 529,616, or were compiled six years ago. Those now given 79 per cent. Illinois comes third, with 847,637 are made up from 7,538 banks, only 40 banks national bank depositors, an increase since having failed to make a return. 1910 of 376,910, or 80 per cent. Ohio ranks fourth in the number of national bank depos- The number of depositors is 14,288,059, an itors, with 791,760, an increase of 321,076 since increase of 6,597,591 over the number six years 1910, or 68 per cent. Texas comes next, with ago, which was 7,690,468. The increase is 86 658,774 depositors, an increase of 291,161, or 79 per cent. The Southern States show 121 per per cent". California follows, with 529,290 cent increase, but the largest actual increase by depositors, an increase of 294,729 since 1910, or 125 per cent. geographical divisions is in the Middle Western The State which showed the largest percent- States. The Pacific States increased 117 per age of increase in the number of national bank cent, and the New England States 84 per cent. depositors was Tennessee, the increase in six Pennsylvania has the largest number of na- years being 251 per cent, or from 73,329 detional-bank depositors and New York is next. positors in 1910 to 257,508 in 1916. South Carolina ranks next to Tennessee. The na- Of course, in preparing the statistics it has been tional bank depositors in South Carolina inimpossible to allow for duplication among decreased 217 per cent, or from 39,217 in 1910 to positors in such cases; for example, as when an 124,423 in 1916. Oklahoma comes next to individual carries more than one deposit ac- South Carolina, with an increase of 188 per count, or when a local national bank redeposits cent, national bank depositors in Oklahoma increasing from 108,475 to 312,826 in the some of the funds deposited with it in a larger period named. In percentage of increase bank in some central city. The figures shown Idaho ranks next with 169 per cent, the increase can not, therefore, be taken as an absolute count in the number of depositors being 52,487. The of individual national-bank depositors, but they next largest percentage of increase is in Virare at least fairly comparative. ginia, where the number of national bank depositors increased 155 per cent, or from 149,306 The following statement on the subject was in 1910 to 381,662 in 1916. The following given out by the Comptroller of the Currency: States, in the order named, show the next The figures show an unprecedented increase largest percentages of increase: North Carolina, in the number of national bank depositors 152 per cent; Oregon, 151 per cent; West Virthroughout the country. The total number on ginia, 146 per cent; Arkansas, 145 per cent; May 1, 1916, was 14,288,059, against 7,690,468 Alabama, 132 per cent; Florida, 127 per cent; on June 30, 1910, the increase being 6,597,591, Iowa, 125 per cent. Other States in which the or 86 per cent. number of national bank depositors more than Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

AUGUST 1, 1916. EEDEBAL RESERVE BULLETIN. 377 doubled in the six years from 1910 to 1916 The New England States have 100 national were: Montana, 123 per cent; Utah, 122 per bank accounts tor each 830 of population; the cent; Connecticut, 114 per cent; South Da- Eastern States average 100 accounts for every kota, 112 per cent; Georgia, 108 per cent; New 577 of population; the Southern States for each Hampshire, 108 per cent; North Dakota, 107 991 of population; the Pacific States for each per cent; Mississippi, 105 per cent; and Oregon, 579 of population; the Western States for each 105 per cent. The smallest percentage of in- 574 of population. crease shown in any State was in Delaware, Throughout the entire United States there is where the increase was 1,393, or 5 per cent, the an average of 100 national bank accounts for next smallest being Rhode Island, with an in- every 704 of population. crease of 9,194, or 54 per cent. The population statistics used in these calcu- Of the 14,288,059 deposit accounts in the lations are the estimated figures of July 1/ 1915. national banks of -the United States, 305,699, or 2 per cent, are carried in the national banks of the central reserve cities of New York, Chicago, and St. Louis. One million seven hun- Commercial Failures in June. dred and seventy-eight thousand eight hundred Commercial failures in Federal Reserve disand nine, or 12 per cent, are with the national banks in the other reserve cities of the country, tricts during the month of June, as compiled while the country banks report 12,203,551 by R. G. Dun & Co. for the Federal Reserve depositors, or over 85 per cent of the total Bulletin, continue to be less in number and in number. respect to total liabilities than those for the Of the 14,288,059 deposit accounts, 9,494,289, corresponding month in 1915. Failures for or 66 per cent, are demand deposit accounts; June show a marked decrease in number and 4,793,770, or 33.6 per cent, are time deposit accounts. total liabilities than for the month of May. Of the 9,494,289 demand deposit accounts, The total failures in June, 1916, were 1,227 1,498,945 draw interest; the remaining 7,995,- and the liabilities aggregated $11,929,341. 244 demand depositors collect no interest. Of The figures, by districts, for June and of the the 4,793,670 time depositors, all draw interest three previous years are given below: except 132,652. In the three central reserve cities, 78.9 per cent of all depositors are demand depositors. Number In the other reserve cities 66.6 per cent are District. of Liabilities. failures. demand depositors. In the country banks 66 per cent of the total deposit accounts are No 1 124 U, 129,407 demand, the balance being on time. No 2 199 2,599,669 No 3 ... 55 532,205 The total number of deposit accounts on No.4 93 704,632 June 23, 1915, as reported by all the State No 5 71 437,730 No.6 119 1, 648,358 banks (exclusive of mutual and stock savings No 7 . . 131 1,004,002 No 8 68 1,466,823 banks) and by all loan and trust companies No 9 . .. 28 152,872 throughout the United States was 15,814,446. No.10 68 448,232 No 11 78 546,699 It is therefore seen that the national banks now No 12 193 1,258,712 have nearly as many deposit accounts as all the Total 1916 1,227 11,929,341 State banks above mentioned and all the loan 1 1 9 91 1 4 5 ,. 1 1 , , 7 1 5 6 4 0 1 57 8 , , 8 3 8 1 1 3 , , 2 1 6 1 4 8 and trust companies in the United States com- 1913 1,145 20,767,625 bined in June, 1915, the time these figures were last compiled in regard to them. Effects of New Clearing System. From the above report it appears that in the State of Pennsylvania there are 100 national Many questions are being asked as to the bank accounts for every 414 of population; in effects of the new clearing system. It is of Vermont; for each 483 of population; in Oregon, ; course, much too early to make complete report for each 450 of population; and in Minnesota further than to.say that, generally speaking, and Iowa there are about 100 national bank accounts for each 480 of population. the clearing operations were started on July 15, Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

378 FEDERAL RESERVE BULLETIN. AUGUST 1,1916. with very little friction, and the number of banks, however, have begun sending out-ofchecks handled is increasing daily. town items. Chicago banks are cooperating with the It will perhaps be interesting to the readers Federal Reserve Bank by arranging to increase of the Bulletin to note some of the statements gradually their deposits of checks. It is now that have already been given out by the various apparent that the collection system will be used Federal Reserve Banks. The following brief by all classes of member banks, but principally statements by officers of the New York Chicago, by those in the reserve cities and collecting ; centers of the district. and Philadelphia Federal Reserve Banks are therefore embodied. Statement by Mr. C. J. Rhoads, governor Statement by Mr. R. H. Treman-, deputy Federal Reserve Bank of Philadelphia, under governor of the Federal Reserve Bank of New date of July 24, 1916: York, under date of July 15, 1916: The banks themselves have usually made arrangements with each other for these collec- The banks have usually m ide arrangements tions, which in many cases have not been with each other for these collections, which in entirely satisfactory. The routes chosen have many cases have not been entirely satisfactory. often been roundabout, thus necessitating a The routes chosen have often been roundabout; waste of time in collecting the items, and some thus necessitating a waste of time in collecting abuses have grown up in connection therewith, the items, and some abuses have grown up in so that these arrangements have never proconnection therewith, so that these arrangeduced a simple, comprehensive, and scientific ments have never produced a simple, compreplan, such as is now contemplated by the plan hensive, and scientific plan, such as is now coninaugurated by the Federal Reserve Board. templated by the plan inaugurated by the Fed- There will be less money tied up in the mails, eral Reserve Board. and each community generally will probably There will be less money tied up in the mails, benefit by the retention in the local banks of and each community generally will probably funds which have hitherto been transferred to benefit by the retention in the local banks of the larger cities as a necessary incident to the funds which have hitherto been transferred to existing collection arrangements. the larger cities as a necessary incident to the This new collection system is only one of existing collection arrangements. many benefits which the operation of the Statement by Mr. C. R. McKay, deputy gov- Federal Reserve System will bring to the busiernor Federal Reserve Bank of Chicago, under ness interests of the country, and which will inevitably result in better and more scientific date of July 18,1916: banking methods. The country has already Under the new collection system, which was benefited through the freedom from currency inaugurated simultaneously by the 12 Federal panics which the Federal Reserve Act has Reserve Banks on July 15, the Federal Reserve insured, and the greater stability in the supply Bank of Chicago received from its members on and cost of credit which the system is bringing Saturday, the first day of the operation of the about. new system, about 7,500 items, 3,500 of which In order to bring about this needed reform, were checks on Chicago banks. the national banks and the State banks, which Indications are that member banks in the are cooperating with the Federal Reserve Sysreserve cities and other collecting centers of this tem, are called upon to forego the income from district will use the system actively, most of the "•exchange" charges which they have been items being received from these banks. To- receiving for remitting for checks drawn upon day a large volume is coming in from other themselves. This will result in a general revi- Federal Reserve Banks in the adjoining dis- sion of the relations between the banks and that tricts, namely, St. Louis, Minneapolis, and class of depositors whose accounts have been Cleveland. There is also an increase in the carried at an actual loss to the bank. These number of items coming from out-of-town depositors will undoubtedly be asked either to member banks, as msfriy of them did not begin keep their balances sufficiently large to commailing their items until the 15th instant. pensate the bank for the services rendered, or Most of the items received from country banks to pay the bank a reasonable, though nominal, are drawn on Chicago. Some of the country sum for such services, so that the bank will not Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

AUGUST 1,1916. FEDERAL RESERVE BULLETIN. 379 be required to perform any service at a loss. The foregoing statement shows the aggregate of Many bank depositors probably fail to realize increased capital for the period of the banks the items of cost in banking. For instance, embraced in statement was $1, 690,000 every check passing through the average size Against this there was a reduction of capital bank costs from 2 to 3 cents to handle, and this owing to liquidations (other than for consoliis typical of similar small items of expense dation with other national banks) and reducwhich have entailed some loss, the aggregate tions of capital of 1,050,000 of which is quite large. Net increase ... 640,000 The various changes made necessary in the banks in the development of this banking sys- Fiduciary Powers. tem, which is producing results so advantageous to the country, have entailed upon the member Applications from the following banks for banks some losses of revenue, and the business permission to act under section 11 (k) of the community should properly be expected to Federal Reserve act have been approved by share the cost of the evolution of the system. the Board since the issue of the July Bulletin, as follows: New National Bank Charters. DISTRICT NO. 3. Trustee, executor, administrator, and registrar of stocks The Comptroller of the Currency reports the and bonds: following increases and reductions in the num- Dubois National Bank, Dubois, Pa. ber of national banks and the capital of DISTRICT NO. 6. national banks during the period from June 24, Trustee, executor, and administrator: 1916, to July .21, 1916, inclusive: Peoples National Bank, McMinnville, Tenn. Banks. New charters issued to 10 DISTRICT NO. 7. With capital of 1650,000 Trustee, executor, administrator, and registrar of stocks Increase of capital approved for.......... 10 and bonds: With new capital of 1, 040,000 Des Moines National Bank, Des Moines, Iowa. Aggregate number of new charters and banks Trustee, executor, and administrator: increasing capital 18 First National Bank, Le Mars, Iowa. With aggregate of new capital authorized 1,690,000 DISTRICT No. 8. Number of banks liquidating (other than Executor and administrator: those consolidating with other national Merchants-Laclede National Bank, St. Louis, Mo. banks) 12 Capital of same banks 900, 000 DISTRICT NO. 10. Number of banks reducing capital 2 Trustee, executor, and administrator: Reduction of capital 150,000 First National Bank, Decatur, Nebr. Total number of banks going into liquida- DISTRICT NO. 11. tion or reducing capital (other than those consolidating with other national banks). 14 Trustee, executor, administrator, and registrar of stocks ) capital reduction. 1,050, 000 and bonds: Central Rational Bank, San Angelo, Tex. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

380 FEDERAL RESERVE BULLETIN. AUGUST 1, 1916. GOLD SETTLEMENT FUND. Amount of clearings and transfers, Federal Reserve Banks, from June 23, 1916, to July 20, 1916, inclusive. Gold held in the Gold Settlement Fund and Federal Reserve Agents7 Fund reached a new [In thousands of dollars.] high point on July 6 when the aggregate of the two funds was $168,500,000. Heavy with- Total clearings. Balances.Transfers. drawals have since been made by the Federal Reserve Banks in order to make payments Settlement of— to the Treasury on account of withdrawal of June 29, 1916. 72,996 6,379 2,527 July 6, 1916 76,955 16,207 1,550 Government deposits, the total amount thus July 13, 1916... 67,203 6,795 3,327 July 20, 1916 75,779 5,884. 1,660 handled through the fund between July 10 Total 292,933 35,265 9,064 and July 20 having been $34,500,000, which Previously reported 1,395,073 149,571 60,052 Total since Jan. 1, 1916 1,688,006 184,836 69,116 included repayment by the Federal Reserve Total for 1915 (including transfers).. ... 1,052,649 Banks of Richmond, Atlanta, and Dallas of Total transfers, 1916 69,116 the $15,000,000 special deposit placed with Total clearings and transfers, May 20, 1915, to July 20, 1916.. 2,809,771 them in September, 1915. Deposits and withdrawals by Federal Reserve Banks and Federal Reserve Agents, and where made, Jan. 1, 1916, to June 30, 1916. [In thousands of dollars.] Federal Reserve Bank and Federal Reserve Agent. Treasury, Subtreasury, Boston. New York. Philadelphia. Cleveland. Richmond. Atlanta. Chicago; or Mint, at— Depos- With- Depos- With- Depos- With- Depos- With- Depos- With- Depose • With- Depos- Withited. drawn. ited. drawn. ited. drawn. ited. drawn. ited. drawn. ited. drawn. ited. drawn. Boston 4,500 2,000 New York 56,000 Philadelphia .....:. 2,500 22,500 Washington 2,000 1,400 660 3,080 4,660 6,710 280 3,700 500 Chicago 24,800 New Orleans '. 430 Total . . 4,500 2,000 56,000 2,000 2,500 23,900 660 3,080 4,660 6,710 710 3,700 24,800 500 Federal Reserve Bank and Federal Reserve Agent. Treasury,'Subtreasury, or Mint, at— St. Louis. Minneapolis. Kansas City. Dallas. San Francisco. By all banks. Depos- With- Depos- With- Depos- With- Depose With- Depos- With- Depos- Withited. drawn. ited. drawn. ited. drawn. ited. drawn. ited. , drawn. ited. drawn. 4,500 2,000 New York 56,000 Philadplnhia 10 2,500 22,510 2,260 650 8,572.5 4,257.5 1,090 5.600 34,220 Chicago 24' 800 St Louis , 50 2,730 10 2,780 10 430 San Francisco 16,980 16,980 Total 50 2,260 650 2,730 8,572.5 4,277.5 18,070 96,610 75,720 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

AUGUST l, 1916. FEDEEAL EESEBVE BULLETIN. 381 Summary of deposits and withdrawals to June 30, 1916. [In thousands of dollars.] May 20,1915, to Jan. 1,1916, to Total from May Dec. 31,1915.1 June 30,1916. 20,1915, to June 30,1916. Treasury, Subtreasury, or Mint at— Depos- With- Depos- With- Depos- Withited. drawn. ited. drawn. ited. drawn. Boston . . • . . 3,230 4,500 2,000 7,730 2,000 New York . ... 87,000 56,000 143,000 Philadelphia 12,560 7,000.5 2,500 22,510 15,060 29,510.5 Cincinnati ... ... 1,500 1,500 Washington 21,890 1,650 5,600 34,220 27,490 35,870 Chicago... . 13,430 2,000 24,800 38,230 2,000 St. Louis . 6,700 2,025 2,780 10 9,480 2,035 New Orleans - . . . . .. 3,510 7,810 430 3,940 7,810 San Francisco 10,380 5,000 16,980 10,380 21,980 D enver 94.5 94.5 Total :....• 160,200 25,580 96,610 75,720 256,810 101,300 Balance in gold settlement fund June 30 1916 - 112,930 Balance in Federal reserve agents' fund June 30,1916 . - 42,580 Total - 256,810 i For detailed statement see Federal Reserve Bulletin, vol. 2, No. 2, p. 61. Changes in ownership of gold. [In thousands of dollars.] Total change from To June 22,1916. From June 23,1916, to July 20,1916.* May 20, 1915, to July 20,1916.2 Balance Federal Reserve Bank of— to credit June 22, 1916, plus Balance Decrease.Increase. net de- July 20, Decrease. Increase. Decrease. Increase. posits 1916. of gold since that date. Boston 8,700 7,430 16,052 8,622 17,322 New York 135,045 30 955 6,010 24,945 159,990 Philadelphia 32,527 3 917 12,275 8,358 40,885 Cleveland 10,792 11 152 11,161 9 10,801 •Richmond ' 13,083 9 953 11,321 1,368 14,451 Atlanta 15,002 392 1 940 1,548 16,550 Chicago • • 22,948 5,562 7,832 2,270 20,678 St Louis 11,034 6 394 5,649 745 10,289 Minneapolis ' 6,-228 5,628 4,608 1,020 5,208 Kansas City 14,313 7,180.5 11,710.5 4,530 18,843 Dallas 14,132 4,004.5 4,540.5 536 14,668 San Francisco 32,182 6,752 6,221 531 31,651 Total 157,993 157,993 99,320 99,320 27,241 27,241 180,668 180,668 1 Changes in ownership of gold during period June 23,1916, to July 20,1916, equal 9.02 per cent of obligations settled. 2 Total changes in ovynership of gold e^ual 6.43 per cent of total obligations settled. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

382 FEDERAL RESERVE BULLETIN. AUGUST 1, 1916. Summary of transactions for week ending June £3, 1916, to July 20, 1916' [In thousands of dollars.] Gold. Transfers. Settlement of June 29,1916. June 26, Change in own - Balance 1916, ership of gold. Federal Reserve Bank of— m la e s n t t s , t J a u te n - e b fu a n la d n c a e f t i e n r 22, 1916. d W ra i w th n - . D i e te p d o . s- Debit. Credit. de N b e i t ts. d T e o b t i a ts l . c T re o d ta it l s. cr N ed e i t ts. clearing. cr D ea e s - e. cr I e n a - se. Boston 14 430 7,804 8,151 • 347 14,777 347 New Y o r k . . .. 2 955 3,000 2,449 4,477 17,237 12,760 3,927 2,028 Philadelphia 13,167 120 60 9,208 11,414 2,206 15,553 2,266 Cleveland 11,302 500 1,865 2,406 541 11,343 41 Richmond... .. . . .. 14 493 450 192 7,817 7,625 14,751 192 Atlanta 5,392 is 21 1,780 1,759 5,389 3 Chicago 4 562 3,500 11,139 12,707 1,568 9,630 1,568 St. Louis 6 494 150 1,689 10,869 9,180 4,655 M Ka in n n sa e s a p C o i l t i y s. . . . .. 5 8 ,1 6 8 2 0 8 .5 4,5 1 7 3 9 6 5,7 1 2 3 4 7 1,145 1 5 9 , , 6 3 2 2 9 5.5 1,839 1,145 1 Dallas 9,154.5 100 377 317 742 425 9,102.5 48 San Francisco 10 152 1,500 245 391 146 8,798 1,354 Total 105,910 100 7,070 2,527 2,527 6,379 72,996 72,996 6,379 112,880 5,416 5,416 Balance Gold. Transfers. Settlement of July 6, 1916. July 6,1916, C e h rs a h n i g p e o in f g o o w ld n . last state- balance in Federal Reserve Bank of— ment, June fund after 29, 1916. d W ra i w th n - . D it e e p d o . s- Debit. Credit. de N b e it t s. d T e o b t i a ts l . c T re o d ta it l s. cr N ed e i t ts. clearing. cr D ea e s - e. cre In as - e. Boston 14,777 3,000 100 200 6,070 10,860 4,790 16,667 4,890 New York... 3,927 15,000 1,000 15,166 26,297 11,131 4,761 14,166 Philadelphia 15,553 8,764 12,127 '*3*363* 18,916 3,363 Cleveland ... 11,343 50 1,994 3,156 1,162 12,455 1,162 Richmond. 14,751 310 6,894 7,499 605 15,666 605 Atlanta... . 5 389 1,678 2,689 1,011 6,400 1,011 Chicago 9,630 1,000 350 1,041 12,612 11,571 9,939 691 St. Louis 4,655 100 8,292 9,615 1,323 5,878 1,323 Minneapolis 5,629 250 124 522 398 5,777 148 Kansas City 9,325.5 3,573 4,834 1,261 10,586.5 1,261 Dallas 9,102.5 20 428 1,367 939 10,021.5 939 8 798 1,200 229 1,584 1,355 8,953 155 Total 112,880 3,170 16,310 1,550 1,550 16,207 76,955 76,955 16,207 126,020 14,857 14,857 Changes in own- Balance Gold. Transfers. Settlement of July 13, 1916. July 13,1916, ership of gold. Federal Reserve Bank of— last state- balance in ment, July fund after 6, 1916. d W ra i w th n - . D i e te p d o . s- Debit. Credit. de N b e it t s. d T e o b t i a ts l . c T re o d ta it l s. cr N ed e i t ts. clearing. cr D ea e s - e. . cre In a - se. Boston. 16,667 380 6^295 9,441 3,146 20,193 3,526 New York 4,761 2,000 547 4,441 17,154 12,713 1-1,133 5,894 Philadelphia . . . 18,916 4,500 130 2,000 346 9,584 9,238 16,200 1,654 Cleveland 12,455 50 507 1,963 1,456 11,898 507 Richmond 15,666 410 678 7,850 7,172 15,398 678 Atlanta 6,400 5,000 1,403 1,507 104 1,504 104 Chicago 9,939 1,500 400 823 9,991 9,168 11,016 423 St. Louis . 5 878 8,339 8,458 119 5,997 119 Minneapolis 5,777 300. 54 234 180 5,657 120 Kansas*City 10,586.5 4,112 5,064 952 11,538.5 952 Pallas : 10,021.5 20 647 292 696 404 9,758.5 243 San Francisco 8,953 380 166 2,056 1,890 10,463 1,510 Total 126,020 9,570 2,040 3,327 3,327 6,795 67,203 67,203 6,795 118,490 7 865 7 865 1 Overdrawn. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

AUGUST 1, 1916. FEDERAL RESERVE BULLETIN. 383 Summary of transactions for week ending June 23, 1916, to July 20,. 1916—Continued. Changes in own- Federal Reserve Bank of— m la B e s n a t l t s , a t n a J c t u e e l - y Gold. Transfers. Settlement of July 20, 1916. ba J l u 1 a l 9 n y 1 c 6 2 e , 0 i - n ership of gold. 13, 1916. d W ra i w th n - . D i e te p d o . s- Debit. Credit. d N eb e i t t. 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 r a in ft g e . r cr D ea e s - e. cr I e n a - se. Boston 20,193 4,000 141 10,579 10,438 16,052 141 New York 1-1,133 10,000 960 3,817 19,377 15,560 6,010 2,857 Philadelphia . . 16,200 "5," 666' 9,711 10,786 1,075 12,275 1,075 Cleveland 11,898 50 687 3,457 2,770 11,161 687 Richmond 15,398 6,000 290 7,531 9,164 1,633 11,321 X,633 1,504 1,322 1,758 436 1,940 436 Chicago 11,016 5,666 500 8,951 10,267 1,316 7,832 1,816 St. Louis 5,997 200 548 9,118 8,570 5,649 348 Minneapolis 5,657 500 549 583 34 4,608 1,049 Kansas City . . .. 11,538.5 1,000 4,400 5,572 1,172 11,710.5 1,172 Dallas 9,758.5 5,010 460 590 842 252 4,540.5 208 •SanJFrancisco . .. 10,463 3,500 100 700 142 160 18 6,221 842 Total . ..4 118,490 29,560 10,390 1,660 1,660 5,884 75,779 75,779 5,884 99,320 6,132 6,132 1 Overdrawn. Federal Reserve Agents' Fund—Summary of transactions, June 23, 1916, to July 20, 1916, inclusive. [In thousands of dollars.] Week ending June Week ending July Week ending July 29,1916. 6,1916. Week ending July 13,1916. 20,1916. June 22, Federal Reserve Agent at— 1916, balance. d W ra i w th n - , Balance. d W ra i w th n - . Balance. d W ra i w th n - . D i e te p d o . s- Balance. d W ra i w th n - . Balance, Philadelphia. 3,410 120 3,290 100 3,190 130 500 3,560 200 3,360 Richmond . 5,000 100 4,900 200 4,700 4,700 150 4,550 Atlanta 13,450 450 13,000 13,000 ;;;;; 13,000 13,000 Chicago 3,310 3,310 3,310 3,310 3,310 St Louis 3,650 3,650 100 3,550 3,550 3,550 Minneapolis 1,350 1,350 1,350 1,350 1,350 Kansas City 3,700 200 3,500 3,500 3,500 3,500 Dallas . . 630 100 530 530 ibb' 430 430 San Francisco 9,350 9,350 9,350 9,350 100 9,250 Total 43,850 970 42,880 400 42,480 230 500 1 42,750 450 42,300 DISCOUNT RATES. Discount rates of each Federal Reserve Bank in effect Aug. 1, 1916. Trade acceptances. Maturities Maturities Maturities Agriculo M a f n a 1 d t 0 u l r e d i s t a i s e y . s s t i o o n f c 3 o l 0 u v s d e i r a v y 1 e s 0 . , t i o o n f c 6 o l 0 u v s d e i r a v y 3 e s 0 . , t i o o n f c 9 o l 0 u v s d e i r a v . y 6 e s 0 . , 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 k e . r T in o c 3 lu 0 s d i a v y e. s, T in o c 6 l 0 u s d i a v y e s . , O 9 v 0 e r d 6 a 0 y s t , o m p C a o o p d m e it r - y . m i b n o a u r o k g p e h e t n t . inclusive. Boston New York Philadelphia... i3| Cleveland Richmond Atlanta Atlanta (New Orleans branch) 3 31-4 3 3|-4 Chicago St. Louis 43 M Ka in n n s e a a s p C ol i is ty... I34 Dallas 3-5 •San Francisco.. 1 Rate for commodity paper maturing within 90 days. 2 Rate for bills of exchange in open market operations. s Rate for trade acceptances bought in open market without member bank indorsement. 4 A rate of 2 to 4 per cent for bills with or without member bank indorsement has been authorized. & Rate for commodity paper maturing within 30 days, 34 per cent; over 30 to 60 days, 4 per cent; over 60 to 90 days, 4J .per cent; over 90 days, .5 per cent. NOTE.—Rate for bankers' acceptances, 2 to 4 per cent. 53038—16 3 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

384 FEDERAL RESERVE BULLETIN. AUGUST 1,1916. EARNINGS AND EXPENSES OF FEDERAL profits from exchange operations, also from RESERVE BANKS FOR THE SIX MONTHS the sale of United States bonds and notes, etc. ENDING JUNE 30, 1916, The largest relative increase as compared with the earnings for the first quarter of the Aggregate earnings of the Federal Keserve year is shown in the earnings from United Banks for the six months ending June 30,1916, States bonds and notes, while the largest relawere $1,824,436, while total current expenses for tive decrease is shown in the earnings from disthe same period were $1,019,926.20. The latter counts. The most recent change in the sources figure includes, besides the expenses of operaof the banks' earnings may be seen from the tion, $836,519.08, also the cost of Federal Repercentages of the several classes of earnings serve notes issued by the banks, $26,941.59, the for the month of June, which were as follows: expense of exchanging Federal Reserve notes 30.5 per cent from bills bought in open market; between banks and of shipping unfit notes to 29.2 per cent from United States bonds and Washington for destruction, $2,078.13, the cost, notes; 20.1 per cent from bills discounted; and including taxes, of Federal Reserve bank notes 14 per cent from municipal warrants. issued by the banks, $2,698*24, and the amortization and depreciation charges aggregating These percentages vary by banks and groups $151,689.16 for the six-month period. of banks. Thus, over 80 per cent of the com- Total earnings for the first six months exceed bined 6-month earnings of the three southern by $804,509.80 aggregate current expenses for banks came from bills discounted, as against less the period, the excess earnings being at the than 3 per cent in the case of the three eastern yearly rate of about 2.9 per cent on an aggre- banks, and about 25 per cent in the case of gate paid-in capital of $54,854,000, reported as the four banks in the Middle and North West. at close of business on June 30, 1916. On page Nearly 60 per cent of the total earnings of the 373 of this number are given the rates of the Boston bank and over 45 per cent of the earnexcess earnings of each bank for the six months ings of the New York bank were from bills ending June 30, also the rates separately for bought in the open market. On the other hand, each of the months of May and June of the the southern banks report only about 4 per cent, present year. and the four western banks about 17 per cent, Combined earnings for the second quarter of their total earnings from this class of transof the present year were 40 per cent in excess actions. of like figures for the first quarter, while excess Next to New York, Cleveland reports the earnings for the second quarter were more largest earnings from municipal warrants, than double those reported for the first quarter these earnings constituting over 40 per cent of of the present year. the bank's total earnings for the six months, as Of the total earnings for the six months, 26.3 against 37 per cent in the case of the New York per cent, compared with 34.2 per cent for the bank. The four western and the San Francisco first three months of the present year, was banks derived between 35 and 45 per cent of from bills discounted for member banks; their total earnings from United States Gov- 24.7 per cent, as against 19.6 per cent, from ernment securities, while of the combined earn- United States bonds and notes; 23.4 per cent, ings of the three eastern banks only about 15 as against 20.2 per cent, from bills bought in per cent proceeded from this source. the open market; and 19.6 per cent, as against Of the total expenses of operation for the 20.5 per cent, from municipal warrants. The six months, over 28 per cent went as compenremainder, about 6 per cent, represents com- sation to bank officers and over 25 per cent as missions earned on acceptances and warrants salaries to the clerical staff of the banks, these bought for other Federal Reserve Banks, percentages remaining fairly constant from Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

AUGUST 1, 1916. FEDERAL RESERVE BULLETIN. 385 month to month. The total amounts paid equipment, Chicago and New York reporting during the six months by the banks for the sup- the largest figures; and of $77,063.56 paid for port of the Federal Reserve Board were $109,- the printing and shipping of Federal Reserve 973.20, or over 13 per cent of the total ex- notes. Over 40 per cent of this expenditure is penses of operation of the banks. Rent con- reported by the New York Federal Reserve stituted about 9.3 per cent of total operating Bank. expenses, other items of importance, in the In continuation of similar figures published order of their volume, being postage, printing in previous issues of. the Bulletin there are preand stationery, and directors' fees. sented below detailed data of earnings and The total current expenses are exclusive of expenses of each Federal Reserve Bank and the $47,358.92, expended in the purchase during system as a whole for the first six months of the present year of additional furniture and the present calendar and fiscal year. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Earnings and expenses of each Federal Reserve Bank of the system as a whole for the six months ending June 30, 1916. CO OO EARNINGS. Atlanta (including Boston. New York. d P e h lp i h la i - a. Cleveland. Richmond. O N rl e ea w ns Chicago. St. Louis. M ap i o n l n is e . - K C an it s y a . s Dallas. Sa c n is F co ra . n- Total. branch). Bills discounted—members... $4,153.48 $6,187.38 $7,800.44 $7,082.61 $120,674.42 $77,125.65 $52,980.30 $16,597.37 $21,594.35 $51,117.62 $102,729.45 $11,155.31 $479,198.38 Bills bought in open market.. 100,650.27 157,346.56 53,990.32 19,487.75 5,169.93 9,436.04 26,305,53 15,127.48 9,423.03 8,381.02 62.50 22,236.27 427,616.70 Investments: United States bonds and notes. .. 22,727. 74 33,336.26 39,487.48 55,662.83 15,393.95 12,871.85 87,573.87 31,325.43 28,268.03 72,834.80 21,246.66 30,530.44 451,259.34 Warrants - 38,582.62 127,237.11 36,862.12 55,675.38 1,296.69 884.93 40,250.52 11,638.91 17,869.70 8,579.84 189.01 19,363.00 358,429.83 Commissions received 3,890.91 19,297.56 1,503.77 24,692.24 Amortization of appreciation on United States bonds 16 872 08 16,872.08 Sundry profits 2,675.39 1,249.64 14,116.36 177.42 19.71 4,885.82 25,548.10 9,856.11 2,368.56 498.77 1,284.97 3,686.58 66,367.43 Total 172,680.41 344,654.51 152,256.72 138,085.99 142,554. 70 106,708.06 232,658.32 84,545.30 79,523.67 158,284.13 125,512.59 86,971.60 1,824,436.00 CURRENT EXPENSES. Expenses of operation: Assessment account of expenses of Federal Reserve Board $10,316.30 $22,110. 40 $10,538.80 $11,876.30 -$6,707.60 $4,844.00 $13,408.40 $5,565.00 $5,100.10 $6,075.6 $5,545.20 $7,885.50 $109,973.20 Federal Advisory Council (fees and traveling 206.00 512.50 153.00 294.32 150.00 176.34 452.40 150.00 405.75 221.45 150.00 150.00 3,021.76 Governors' conferences... 671.01 2,706.19 596.14 774.61 1,107.13 749.20 740.37 1,080.44 978.05 896.14 981.38 1,818.04 13,098.70 Federal Reserve Agents' conferences 77.84 215. &5 47.69 184.00 69.44 103.11 129.69 132.25 332.40 396.81 Salaries- Bank officers 16, 749.90 39,399.84 19,000.00 19,375.00 15,253.07 15,304.14 25,500.00 23,349.00 12,999.96 12,522.97 16,929.12 19,800.00 236,183.00 Clerical staff 9,577.63 45,421.99 16,897.34 13,777.02 13,566.33 16,282.74 25,332.10 16,899.75 10,106.68 17,836.50 13,209.30 11,074.05 209,981.43 Special officers and watchmen.. 3,685.00 2,997.07 205.00 303.33 1,611.00 2,531.00 810.00 692.50 255.00 914.66 60.00 14,064.56 All other 1,336.51 43.20 814.65 1,704.27 600.00 728.47 932.33 6,159.43 Directors— 1,790.00 2,325.00 1,630.00 890.00 1,620.00 1,410.00 1,060.00 2,450^00 1,570.00 1,970.00 880.00 1,040.00 18,635.00 Per diem allowance... 470.00 690.00 510.00 490.00 860.00 950.00 400.00 560.00 450.00 1,225.00 620.00 220.00 7,445.00 Traveling expenses... 336.35 840.00 461.74 610.84 1,179.00 1,114.20 510.00 633.90 695.90 1,902.47 853.85 9,138.25 Officers and clerks traveling expenses (less amounts included in Governors' and Federal Reserve Agents' conferences) 1,056.53 1-196.33 221.07 343.71 231.86 627.60 453.15 122.80 497.49 315.64 532.14 665.15 4,870.81 Legal fees 1,000.00 1,500.00 1,000.04 725.00 300.00 1,271.17 750.00 300.00 1,222.40 1,814.67 9,883.28 Rent 6,250.02 ' 20," 370* 66' 4,249.98 3,035.11 2,975.00 6,004.00 13,287.50 7,725.57 2,500.02 4,249.98 6,924.00 77,571.18 Telephone 554.41 701.60 539.43 492.84 173.66 164.56 627.42 390.56 271.70 291.43 444.75 229.56 4,881.92 Telegraph. 35.95 250.35 18.00 108.21 93.81 226.06 150.33 90.06 98.47 191.58 317.35 197.28 1,777.45 Postage. 857.64 3,881.93 1,657.52 1,608.62 2,010.08 1,892.02 3,026.35 2,572.98 2,023.32 4,663.04 1,328.23 862.83 26,384.56 Expressage •11.59 48.93 680.30 8.45 657.38 2.32 299.23 470.67 230.98 713..02 2,451.93 67.26 5,642.06 Insurance and premiums on fidelity bonds 709.63 977.84 1,699.47 1,113.46 94.61 675. 89 2,157.36 1,103.30 1,048.10 708.60 238.25 1,040.16 11,566.67 Light, heat, and power... 518. 25 663.13 595.61 85.67 888.57 584.50 778.52 152.40 4.266.65 Printing and stationery.. 920.97 6,310.38 1,678.23 1,773.23 1,551.08 1,619.13 2,281. 44 1,888.78 1.001.03 2,574.80 1,589.69 1,645.76 24,834.52 Repairs and alterations.. 155.37 28.37 38.10 34.55 15.75 182.30 230.45 162.37 101.45 176.96 50.74 450.94 1,627.35 All other expenses, n. s... 3,158. 47 12,252.82 1,668.40 430.33 1,559.28 2,795.68 4,277.71 1,187.55 911.26 2,410.20 3,259.36 1,126.41 35,037.47 Less amounts transferred to transit department.. i -760. 78 i -453.27 -1,214.05 Total expenses of operation 55,423. 86 163,868.97 66,684.63 58,468. 84 52,313.67 56,563.58 100,589.22 67,915.84 42,562.45 60,945.60 53,561.60 57,620.82 836,519.08 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Cost of Federal Reserve notes issued by bank (including expressage, insurance, etc.).. $3,762.80 115,520.00 S920.00 $765. 07 $900.00 139.05 $646.82 S666. 86 $1,615.13 $2,105.86 $26,941.59 Miscellaneous charges account Federal Reserve notes. 632. 45 $1 171.61 274.07 2,078.13 Cost of Federal Reserve Bank: notes issued including taxes 2,698.24 2,698.24 Amortization charges: Federal Reserve notes 9 999.96 1,802.97 2,424.00 4,800.00 2,761.08 1,454.76 23,242.77 All other organization expenses 8,650.86 18,083.70 7,879.26 11,690.11 21,262.32 3,600.00 13,242.72 11,271.24 95,680.21 Depreciation on furniture and e o uir> ment 3,000.00 2,698.02 1,943.63 1,829.10 2,250.11 $15,000.00 1 645.32 2 4nn.no 2,000.00 32,766.18 Total current expenses. 70,837.52 210,170.65 77,427.52 75,188.54 53,213.67 58,852.74 115,589.22 94,419.09 54,009.27 82,314.50 ' 55,176. 73 72,726. 751,019,926.20 Excess of earnings over current expenses 101,842.89 134,483.86 74,829.20 62,897.45 89,341.03 47,855.32 117,069.10 2-9,873.79 25,514. 40 75,969.63 70,335.86 14,244. 85 804,509.80 Per cent of capital paid in June 30, 1916. 4.1 2.4 2.9 2.1 5.3 3.9 3.5 2-.7 2.0 5.1 5.3 .7 2.9 COST OF FURNITURE AND EQUIPMENT, INCLUDING VAULTS, Balance as reported on Jan. 1, 1916 $9,595.24 $26,980.36 $18,491.31 $20,187.08 $9,500.00 $6, 228.92 $23,000.00 $20,346.13 $54,159.64 $41,828. 85 $33,255.41 $6,422.59 $269,995.53 3 Additional purchases during 6 months ending June 30, § 1916 ... .... 3,201.14 11,546.44 2,001.50 157. 69 193.30 1,136.60 16,207.73 9,306.77 839.19 961.48 1,807.08 47,358.92 £ Total 12,796.38 38,526.80 20,492.81 20,344.77 9,693.30 7,365.52 39,207.73 29,652.90- 54,998.83 42,790.33 35,062.49 6,422.59 317,354.45 Depreciation charged during 6 months ending June 30, W 1916 3,000.00 2,698.02 1,943.63 1,829.10 2,250.11 15,000.00 1,645.32 2,400.00 2,000.00 32,766.18 tel Balance July 1,1916.... 9,796.38 35,828.78 18,549.18 18,515.67 9,693.30 5,115.41 24,207.73 28,007.58 52,598.83 40,790.33 35,062.49 6,422.59 284,588.27 COST OF UNISSUED FEDERAL RESERVE NOTES. Balance as reported on Jan. 1, 1916 $38,633.35 $232,086.79 $43,172.04 $42,757.61 $17,368.34 $9,502.36 $60,380.06 $22,363.46 $19,932.85 $11,252.52 $9,924.60 $34,914.91 $542,288.89 Additional cost of Federal tei Reserve notes for 6 months ending June 30, 1916 . 580.32 31,178.65 187.60 253.76 3,883.58 5,395.78 12,691.01 240.00 11,137. 77 3,898.15 7,616.94 77,063.56 Total 39,213.67 263,265. 44 43,359.64 43,011.37 21,251.92 14,898.14 73,071.07 22,363. 46 20,172. 85 22,390.29 13,822.75 42,531.85 619,352.45 Cost of Federal Reserve notes issued and charged to current expenses during 6 months ending June 30,1916 4,262.80 15,520.00 920.00 765.07 900.00 39.05 646. 82 666. 86 1,615.13 2,105. 86 27,441. 59 Balance July 1,1916 34,950.87 247,745.44 42,439.64 42,246.30 20,351.92 14,859.09 73,071.07 22,363.46 19,526.03 21,723.43 12,207. 62 40,425.99 591,910.86 i Credit. 3 Deficit. CO Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Recapitulation showing earnings and current expenses, by months, from January to June, 1916, for each Federal Reserve Bank and the system as a whole. 00 00 [In thousands of dollars.] 00 Atlanta (including Boston. New York. d P e h lp il h a i - a. Cleveland. Richmond. O N rl e e w ans Chicago. St. Louis. ne M ap i o n l - is. K C a i n t s y a , s Dallas. Fran S c a i n sco. Total. branch). Earnings: January . . .. 21 31 15 16 24 24 33 9 12 17 18 8 228 February 23 41 14 17 22 15 31 11 11 21 20 10 236 March-. . . 32 56 21 20 24 16 37 14 12 27 20 13 292 Anril 30 68 38 23 23 16 39 14 13 29 22 16 331 May ^" 34 80 32 30 26 19 47 17 15 32 22 19 373 June 33 68 *32 32 24 17 46 19 17 32 24 21 365 Total 173 344 152 138 143 107 233 84 80 158 126 87 1,825 Current expenses: January - - 11 37 14 13 9 10 17 15 9 13 10 13 171 February 11 31 13 12 9 10 17 16 10 12 10 12 163 March - - - 13 35 12 12 8 10 16 16 8 15 8 12 165 April 12 33 12 12 9 10 16 16 8 14 10 12 164 Mav 12 40 13 13 10 10 18 16 9 14 8 12 175 June .. 12 34 13 13 9 9 32 15 10 14 9 12 182 Total 71 210 77 75 54 59 116 94 54 82 55 73 1,020 Earnings in excess of current expenses: January 10 1-6 1 3 15 14 16 i-6 3 4 8 i —5 57 M Fe a b rc r h uary 1 1 9 2 2 1 1 0 9 1 8 5 1 1 3 6 5 6 2 1 1 4 i i - - 5 2 4 1 1 9 2 1 1 0 2 i -2 1 12 7 7 3 w April . . .. 18 35 26 11 14 6 23 i -2 5 15 12 4 167 w Mav 22 40 19 17 16 9 29 1 6 18 14 7 198 June - . . . 21 34 19 19 15 8 14 4 7 18 15 9 183 w Total 102 134 75 63 89 48 117 i -10 26 76 71 14 805 d i Deficit. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

AOGGST 1, 1916. FEDEEAL RESERVE BULLETIN. * 389 CIRCULARS AND REGULATIONS. Special instructions to Federal Reserve (c) That no member bank in a city of more than 200,000 Agents in connection with the reports which inhabitants shall have as a director or other officer or employee any private banker or any director or other officer they will make to the Federal Reserve Board or employee of any other bank or trust company located to enable it to act upon applications filed under in the same place. the Kern amendment to the Clayton Act, were EXCEPTIONS. sent out on July 6, 1916. With the issue of these instructions the Federal Reserve Board The provisions of section 8— adopts the policy of issuing as " special instruc- (1) Do not apply to mutual savings banks not having a tions77 circulars not of general interest to mem- capital stock represented by shares. (2) Do not prohibit a person from being at the same time ber banks of the system, but intended primarily (a) a Class A director of a Federal Reserve Bank and also for the assistance of Federal Reserve Agents an officer or director, or both an officer and a director, in and the 12 Federal Reserve Banks. Following one member bank; (b) an officer, director, or employee of the special instructions will be found the blanks one member bank and one other bank or trust company, whether a member bank or nonmember bank, where the to be filled out by those desiring to make apentire capital stock of one is owned by the stockholders plication under the Kern amendment. These of the other. blanks can be obtained from the Federal Re- THE KERN AMENDMENT. serve Board. Section 8 of the Clayton Act does not become By an act of Congress approved May 15, 1916, section 8 was amended by the addition of a further proviso reading effective until October 15, 1916, but in order as follows: that those who will be affected by its provi- "Nothing in this act shall prohibit any officer, director, sions may have ample time to take such action or employee of any member bank, or Class A director of a as may be necessary to comply with the law, Federal Reserve Bank, who shall first procure the consent the Board is making the forms and instruc- of the Federal Reserve Board * * * from being an officer, director, or employee of not more than two other tions available at this time. banks * * * if such other bank * * * is not in SPECIAL INSTRUCTIONS. NO. 1 OF 1916. substantial competition with such member bank." The duty imposed upon the Federal Reserve Board in WASHINGTON, July 6,1916. passing upon any application made under authority of To All Federal Reserve Agents: this amendment is to determine whether or not the two The prohibitions of section 8 of the Clayton Act which banks in question (or either of them) are in substantial relate to interlocking bank directors go into effect on competition with the member bank. If both are non- October 15, 1916. These prohibitions relate to banks member«banks the act does not require that they shall organized or operating under the laws of the United States, not be in substantial competition with each other. and therefore apply to State banks or trust companies In reaching a conclusion on this point it will be neceswhich are members of the Federal Reserve System as well sary for the Board to call upon the Federal Reserve Agent, as to national banks. For convenience, therefore, banks as its local representative, to make investigation of the " organized or operating under the laws of the United facts in each case, to report the same to the Board and to States" will be referred to as "member banks.'* give the Board the benefit of his recommendation whether ANALYSIS OF SECTION 8 OF THE ACT. the consent applied for shall be granted or refused. It is therefore necessary to call to the attention of the Federal As originally enacted, section 8 of the Clayton Act pro- Reserve Agents some of the factors which must be convides, in substance— sidered in determining the question of whether or not the (a) That no person shall be a director, officer, or embanks involved are in substantial competition. ployee of a member bank having resources aggregating more than $5,000,000 and at the same time a director, PURPOSES OF THE ACT AND THE AMENDMENT. officer, or employee of any other member bank. (6) That no private banker or person who is a director The significance of the language " substantial competiof a nonmember bank having resources aggregating more tion" can not be fully understood without considering than $5,000,000 shall be eligible to serve at the same time the purpose of the original Act as well as that of the amendas a director in any member bank. ment. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

390 FEDERAL RESERVE BULLETIN. AUGUST 1, 1916. As outlined by the Judiciary Committee, in reporting In general, therefore,, two banks coming within the prothe original bill to the House, the purpose of section 8 of hibition of the original Act would be deemed to be in subthe original Clayton Act was "to prevent as far as possible stantial competition within the meaning of the language control of great aggregations of money and capital through used in the amendment if the business engaged in by such the medium of common directors between banks and bank- banks under natural and normal conditions conflicts or ing associations, the object being to prevent the concen- interferes, or if the cessation of competition between the tration of money or its distribution through a system of two would be injurious to customers or would-be custominterlocking directorates.'' ers, or would probably result in appreciably lessening the It will be observed that the Act does not undertake to volume of business or kinds of business of either instituprevent interlocking directorates of banks located in small tion. cities and having small aggregate resources. It applies in It is realized that some difficulty will be experienced in terms to the qualification of directors, officers, and em- the application of this test. ployees of banks (a) in cities of more than 200,000 inhabi- Two banks engaged in the same character of business tants or (h) having resources aggregating more than (for example, where both receive commercial deposits and $5,000,000. make commercial loans) would be regarded as in substan- While the general purpose of the Act, as indicated by. tial competition if their fields of activity extended over its title, was "to supplement existing laws against unlaw- the same geographical territory. If their operations were ful restraints and monopolies," and while monopolies are not carried on in the same geographical territory, then, created by a restraint of legitimate competition, a literal although they engaged in the same class of business, they interpretation of section 8 as originally enacted would would not necessarily be regarded as substantial competprohibit a person from serving at the same time as a itors. director, officer, or employee of two or more banks, under Again, if they conducted their operations in the same certain circumstances, whether or not such banks were place, but because of their comparatively small size in competitors. The Kern amendment, however, authorizes relation to the total banking opportunities of the locality, the Board to permit a director, officer, or employee of a and because of the fact that they did not deal with the same member bank, who otherwise would be ineligible, to serve class of customers, the cessation of competition between as a director, officer, or employee of not more than two them might, from the public point of view, be unimportant, other banks or trust companies, whether State or national, chey would not necessarily be deemed to be in substantial provided such other banks or trust companies are not in competition. Or if their operations were conducted in substantial competition with- such member bank. the same locality, but the character of business engaged in It should be borne in mind that the Act does not vest differs fundamentally (for example, where one does only an arbitrary discretion in the Board to permit the same an essentially commercial banking business, while the person to serve on the board of directors of any two or other does only an essentially trust-company or fiduciary more banks, when such banks come within the restrictive business), such banks need not be regarded as in substanlanguage of the Act as originally passed; but it merely tial competition. confers authority upon the board to permit interlocking It is therefore necessary to consider the scope or extent directorates when such banks are not in substantial com- of territory that a bank's operations cover and the character petition within the meaning of the Act. and kinds of business it engages in. Size, measured by aggregate resources, will constitute one of the factors to be SUBSTANTIAL COMPETITION. considered, since to increase the volume of loanable funds It is manifest that no fixed rule can be prescribed by usually increases the radius of a bank's operations. A which this question can be automatically determined. bank with $100,000;000 resources would seek investments The facts in each case must be carefully considered and it in a larger area and of a more diverse character than a bank is the duty of the Board to withhold its consent in any with $5,000,000, and so might come into competition with case in which it would defeat the purposes of the Act to banks located some distance away, while the bank with permit the same person to serve as an officer, director, or $5,000,000 resources might not extend its activities to any employee of more than one bank. real extent beyond the borders of the city in which it is If the two banks in question are not competitors in any located. For example, a bank in New York might come respect, no question arises. If they do compete, the very into substantial competition with a bank in Chicago if difficult question arises whether or not the competition is both were engaged in the same class of business and if both "substantial." had become so large as to be more than local institutions. It is necessary to keep in mind that the main purpose Where the operations of the two banks cover a common of the Act was to prevent the monopolization and central- territory from a geographical standpoint, it is necessary to ization of credit through interlocking directorates of consider carefully the character of business engaged in. banking institutions. One of the injurious results of As a very large proportion of the member banks do a comsuch conditions is that the public is deprived of the bene- mercial banking business, the volume of this business fit of legitimate competition. within the territory covered by the operations of the banks Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

AUGUST 1, 1916. FEDERAL RESERVE BULLETIN. 391 in question becomes an important factor. In a city of all applications received before August 15, 1916, on or 250,000 inhabitants any two banks which engaged in a before September 15, 1916. commercial banking business to any great extent would presumably come into substantial competition, whereas Form 94. in a city of 2,000,000 inhabitants the operations of one bank APPLICATION FOR PERMISSION OF THE FEDERAL RESERVE BOARD TO might be substantially confined to the wholesale district SERVE AT THE SAME TIME AS DIRECTOR, OFFICER, OR EMPLOYEE only, while those of another might be substantially con- OF A MEMBER BANK AND NOT MORE THAN TWO OTHER BANKS, BANKfined to the retail district only, and so might be noncom- ING ASSOCIATIONS, OR TRUST COMPANIES. petitive in the sense that an increase or decrease in the Pursuant to the provisions of section 8 of an act of Congress entitled business of one would not affect the business of the other. "An act to supplement existing laws against unlawful restraints and monopolies, and for other purposes," approved October 15, 1914, and amended by an act of Congress approved May 15,1916,1 hereby make RESUME. application for the consent of the Federal Reserve Board to serve at the same time as of the It is therefore necessary that consideration should be (Director, officer, or employee.) given— of , which is a member of the Federal Reserve (1) To the size in aggregate resources of banks involved. System, and as of the (Director, officer, or employee.) (2) To the character of business engaged in, i. e., the of a corporation created and organized under extent of commercial business and extent of purely invest- the laws of and as ment or trust company business of the two institutions. (Director, officer, or employee.) (3) Whether the operations of the two banks cover the of the of a corporation created and organized under the laws of same geographical territory. I hereby represent to the said Board that to the best of my knowledge (4) Whether the two banks actually compete to any and belief the banks, banking associations, or trust companies herein appreciable extent in any important activity, for example, named are not in substantial competition with the member bank or (a) in soliciting deposits on demand or on time from other banks mentioned above within the terms of the Act as interpreted by the Federal Reserve Board in its letter of July 6, 1916, to all Federal banks or individuals, (6) in the purchase or sale of com- Reserve Agents, as will more fully appear from the statements furnished mercial paper or other securities, (c) in the purchase or by the said banking institutions, which are made a part of this applicasale of foreign exchange, (<2) in soliciting trusteeships, etc. tion. (Name of applicant.) The form of application approved by the Board is To the FEDERAL RESERVE BOARD, intended to furnish an analysis of the character of business m, D. C. of the banks involved as far as it is possible to determine this from the books of the bank. The Federal Reserve (Date.) Agent should supplement this, however, with any infor- THE APPLICANT IS REQUESTED TO ANSWER THE QUESTIONS ON THE mation he may be able to obtain and should base his REVERSE SIDE. Name of applicant recommendation upon the facts in each case. If he Residence concludes that there is substantial competition between Principal business or occupation the banks or that interlocking directorates or common Business address,. officers or employees of the two banks might result in any List of firms of which applicant is a member and the corporations of injury to the public, or in any substantial restraint of or which he is a director, officer, or employee: detriment to the business of either bank, he should recom- Official position in mend that the application be refused. The Board, in Firm or corporation. Business. firm or corporation. reaching a decision, will carefully consider the recommendation of the Federal Eeserve Agent and will base its conclusion upon the report and recommendation of the agent together with other information which its own investigation may disclose. The Kern amendment authorizes the Federal Reserve Form 94a. Board at its discretion "* * * to revoke such con- STATEMENT SUBMITTED AT THE REQUEST OF , sent. " In order that the Federal Reserve Board may (Director, officer, or employee.) revoke its consent at any time it becomes necessary, IN CONNECTION WITH THE APPLICATION MADE TO THE FEDERAL RE- Federal*Reserve Agents should keep it advised of any SERVE BOARD FOR PERMISSION TO SERVE AT THE SAME TIME AS DIchange either in local business conditions or in the re- RECTOR, OFFICER, OR EMPLOYEE OF A MEMBER BANK AND NOT MORE THAN TWO OTHER BANKS, BANKING ASSOCIATIONS, OR TRUST COMsources or character of business conducted by the banks PANIES. which may tend to make them substantial competitors. Name of banking institution In view of the great amount of time necessary to an Location: No Street ,. City or town adequate consideration of each case, it is desirable that State Population of city or town (census of 1910) Character of business of the community which the banking institution directors, officers, and employees file their applications serves as soon as possible. The Board will endeavor to act upon Character of business of the institution 53038—16- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

392 FEDERAL RESERVE BULLETIN. AUGUST 1, 1916. ASSETS. LIABILITIES. This letter was sent out by the Board on Loans: Onreal estate j Capital stock I July 18: On other collateral Surplus Unsecured- Undivided profits Where two or more persons desire to make Customers' paper. Deposits: application for the Board's consent, under the Purchased paper.. Due to banks and trust Item amendment to the Clayton Act, to serve Acceptances (drafts acon the boards of directors of the same two cepted for customers Demand (individual). per contra) Savings banks, it will be sufficient if one Form 94a is Investments: Other time filed by each bank for the first applicant and United States bonds.. Liability on drafts, ac- reference is made to this form by subsequent Other bonds and war- cepted payable at a furants ture date (per contra). applicants desiring to serve on the same two Stocks All other liabilities boards, provided, however, if either bank is Real estate owned required to make a report of its condition to the Cash due from banks and Comptroller of the Currency or to the State trust companies .... All other assets authorities after Form 94a has been filed, a new Form 94a should be filed with the first applica- Total. Total. tion subsequent to such report. To complete Describe nature of demand deposits . the records of the Board and to facilitate its Describe nature of time deposits work it is desired that Form 94a shall be filed NOTE.—Zn filling in blanks under assets and liabilities use figures by the two banks involved in each case where shown in last report filed with the Comptroller of the Currency or with the question of substantial competition is to be the State bank supervisor. Describe nature of acceptance liabilities passed upon. Thus if the same persons desire State practice of bank in respect to purchasing commercial paper, e. g. to serve on the boards of Bank A and Bank B continuous or seasonal and the first applicant has filed Form 94a for What volume of deposits are commercial to the extent of serving as a basis Bank A and also one for Bank B, subsequent for the extension of lines of credit? Describe character of collateral loans applicants may refer to these forms until either . Describe character of investments Bank A or Bank B has been required to make a Describe practice of bank in respect to acquiring and disposing of invest-later report of its condition to the Comptroller ment securities of the Currency or to the State authorities. Describe nature of foreign exchange business, if any, done by the bank.. Describe kind and extent of fiduciary business done by the bank If Form 94a has been filed by Bank A and I hereby certify that the foregoing is a true statement to the best of my Bank B for applicants desiring to serve with knowledge and belief. these two banks, it will not be sufficient for an Cashier. applicant desiring to serve on the boards of Bank A and Bank C to refer to Form 94a filed (Date.) by Bank A in connection with Bank B. NOTE 1.—The signing officer is requested to attach to the statement a copy of the last report filed with the Comptroller of the Currency, if a National bank, or with the State bank commissioner or supervisor, if a State institution. NOTE 2.—If sufficient space has not been provided for replies, the signing officer should attach hereto a blank sheet of paper and continue the answers thereon. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

AUGUST 1, 1916. PBDEEAL RESERVE BULLETIN. 393 INFORMAL RULINGS OF THE BOARD. Below are reproduced letters sent out from "The legislature can not delegate its power time to time over the signatures of the officers to make law, but it can make a law to delegate a power to determine some fact or state of of the Federal Reserve Board which contain things upon which the law makes or intends information believed to be of general interest to make its own action depend. To deny this, to Federal Reserve Banks and member banks would be to stop the wheels of government. of the system: There are many things upon which wise and useful legislation must depend which cannot Membership of State Banks and Trust Companies. be known to the lawmaking power and must Your memorandum in reference to Circular therefore be a subject of inquiry and deter- No. 14 and Regulation M, series of 1915, which mination outside of the halls of legislation." relates to State banks and trust companies The Board does not feel that it is one of its as members of the Federal Reserve system, functions to undertake to restrict State banks has been submitted to and considered by the or trust companies in the exercise of true bank- Board. ing or trust-company powers as defined by the It appears that you are of the opinion that laws of the State in which they are created. many of the State banks and trust companies In passing upon the applications of State are apprehensive that membership in the sys- banks and trust companies^ however, it betem may involve an undue restriction of their lieves it to be its duty to admit only those corporate activities as a result of future regu- institutions which are solvent and sound and lations of the Board and you feel that some whose membership will not constitute an assurance should be given to applying banks element of weakness in the system. The that, as members, their status, so far as the Board does not consider that it is a prerequisite exercise of legitimate banking and trust com- to the admission of any State bank or trust pany powers is concerned, should be more company that it should possess any certain definitely determined. amount of paper eligible for rediscount with a As the extent of the Board''s power to adopt Federal Reserve Bank. Congress has proany specific regulation involves a question of vided that the privileges and advantages of law which must be determined by the facts in membership may be extended to State banks each case, it is, of course, impracticable to and trust companies, thus creating one comoutline definitely the scope of all future regu- pact banking system while still preserving the lations. In order, however, that the attitude integrity of both the State and national of the Board may be made clear, I am instructed systems. Leaving aside any question of their to state to you that • the Board understands duty to the country, it is manifestly to the that it is not its function to undertake to im- best interest of every strong and sound State pose on the activities of member banks any bank and trust company to contribute its restrictions that axe not contemplated by the share to the strength and protective power of Act, but only to prescribe such regulations as the Federal Reserve system by subscribing are designed to carrv out the purposes of the to the capital stock oi its Federal Reserve Act. Bank and by maintaining its required reserve. There are a great many decisions of our This is true whether the State bank or trust courts dealing with the subject of the scope of company has a small proportion of its assets authority of administrative bodies to promul- in liquid paper eligible for rediscount or has gate regulations. The principles established any paper of such description at all. The by these decisions will, of course, be adhered fact that it has little eligible paper would not to by the Board in adopting its regulations. of itself make its membership an element of While Congress could not delegate its power weakness or danger, and it is obvious that as a to make a law, it can, as stated in Field v. member of the system it would be in a position Clark, 148 U. S., 649, 694, /'make a law to to contract for loans and to obtain cash from delegate a power to determine some fact or other member banks having paper eligible for state of things upon which the law makes or rediscount and thus indirectly to obtain the intends to make its own action depend,'7 or, desired accommodation. The ability to lend as expressed in the' case of Locke's Appeal, assistance to member banks directly and in- 72 Pa. St., 491, 498— directly will be increased as the strength of the Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

394 FEDERAL RESERVE BULLETIN. system and lending power of the Federal tention of Congress was merely to provide that Reserve Banks are increased. There is no a Federal Reserve Bank should not, except reason wiry such assistance should not be under certain specified conditions, discount given freely to a member State bank while in paper with a maturity of more than 90 days. times of stress the nonmember banks may The negotiable instruments law specifically find the member banks less disposed or able to provides that a bill of the kind described is a give them this indirect assistance. negotiable instrument. Section 4 of that act It is, of course, indispensable that any paper provides that "an instrument is payable at a offered for rediscount to a Federal Reserve determinable future time, within the meaning Bank sould conform to the provisions of the of this act, which is expressed to be payable Act and of the regulations of the Board. It is on or before a fixed or determinable future time clear, however, that a Federal Reserve Bank specified therein.77 will have to look all the more carefully into the The question raised by you has been substatus of a State member bank asking for re- mitted to counsel for the Board, who is of the discounts if such State bank or trust company opinion that a bill payable "on or before77 a exercises banking functions that are likely to certain date is negotiable paper and, if otherinterfere with the liquidity of such State mem- wise in conformity with the provisions of law ber institution or may lead to overextension. and of the Federal Reserve Act, is eligible for In other words, the Board might consider discount by a Federal Reserve Bank. that the exercise of extraordinary powers, JUNE 28, 1916. such as might make an applying State bank or trust company an undesirable member, a sufficient reason to refuse the grant of the appli- Clayton Act. cation. After such State bank or trust company, however, has. become a member bank With further reference to your letter of June the Board does not expect to interfere with the 28, you are advised that the provisions of the exercise of those banking and trust company Clayton Act do not prohibit a person from powers authorized by its charter. If the ex- serving at the same time as a director of a ercise of such powers should tend to interfere mutual savings bank not having a capital with the liquid and sound condition of a State stock represented by shares and as a director bank or trust company member, the Federal of a member bank, regardless of whether the Reserve Bank would, of course, be justified in two institutions are in substantial competition. taking due precaution in dealing with the ap- If, therefore, the institution which you have plications for rediscount of such State bank or in mind is operated under the mutual system trust company. and has no capital stock represented by shares, it would come within the exception which you JULY 25, 1916. mentioned in the prohibitions of the Clayton Act. Notes Payable " On or Before." JULY 1, 1916. Your letter of June 22 raises the question whether a note payable " on or before 77 a certain date is eligible for rediscount with a Federal Your letter of June 29, addressed to the Reserve Bank, provided it conforms to the Comptroller of the Currency, has been referred law and regulations of the Board in all other to this office for attention. respects. Inclosed please find copy of the Kern amend- Section 13 of the Federal Reserve Act ment to the Clayton Act, approved May 15, provides that "notes, drafts, and bills ad- 1916. mitted to discount under the terms of this You are advised that there is nothing in the paragraph must have a maturity at the time Clayton Act or in the Kern amendment thereto of discount of not more than 90 days.77 which prohibits a person from serving at the A bill therefore, which is payable "on or same time as a director in two national banks before77 90 days is eligible within the terms of located in a city of less than 200,000 inhabitthat section. The fact that the maker would ants, provided neither has deposits, capital, have the option to pay the bill before the surplus, and undivided profits aggregating maximum maturity would not of itself make more than .$5,000,000. such paper undesirable. Apparently the in- JULY 6, 1916. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

AUGUST 1, 1916. FEDEKAL RESERVE BULLETIN. 395 Your letter of July 12 is received, asking buy adequate machinery for use thereon, is whether the Federal Reserve Act, as now received. amended, permits the service on the board of In reply, you are informed that under the directors of a national bank after October 15, Federal Reserve Act member banks of the 1916, of a member of a private banking firm Federal Reserve System, which comprise all under certain conditions. national banks and such State banks and trust Section 22 of the Federal Reserve Act, which companies as have joined, may loan funds relates to the fees to be paid officers, directors, on farm lands for a limited period, protecting and employees of member banks, and is the themselves by mortgage. Of course there is only portion of that Act which could have a nothing in the Act to compel a member bank bearing on this (Question, has not been amended. to make such loans or to fix the rates at which You are advised, however, that section 8 of they shall be made. Moreover, the Federal Rethe Clayton Antitrust Act, approved October serve Banks are not authorized to rediscount 15, 1914, provides in part: for a member bank loans based on farm-land "That from and after two years from the security. date of the approval of this act * * * no As you have doubtless seen in the public private banker or person who is a director in print, the rural credits bill, which was passed any bank or trust company, organized and at this session of Congress, has been signed by operating under the laws of a State, having the President and is now a law. This bill will deposits, capital, surplus, and undivided profits doubtless be of interest to you, and the Senate aggregating more than $5,000,000, shall be document office has been requested to forward eligible to be a director in any bank or banking a copy to you direct. association organized or operating under the For your information several circulars issued laws of the United States/7 by the Federal Reserve Board in this connection Under this language it would seem that a are inclosed herewith. private banker or a member of a private bank- JULY 8, 1916. ing firm would be ineligible after October 15, 1916, to serve at the same time as a director of a member bank. Cattle Paper. The Kern amendment to the Clayton Act, Comparatively few of the Federal Reserve approved May 15, 1916, provides in substance Banks discount cattle paper in large amounts. that nothing in the act shall prohibit any While the usual reports made, to the Federal officer, director, or employee of any member Reserve Board show the amount of such paper bank, who shall first procure the consent of the discounted by the several Federal Reserve Federal Reserve Board, from serving at the Banks, the detailed information requested by same time as an officer, director, or employee you could not be furnished without first making of not more than two other banks, banking it the subject of special reports. associations, or trust companies which are not The Federal Reserve Banks of Dallas and in substantial competition with such member Kansas City have., occasion to handle more bank. No change is made, however, in the of this paper than any of the other banks. Approvisions of the original Clayton Act regarding proximately 40 per cent of the total paper disthe eligibility of private bankers. counted for the month of June by the Dallas JULY 13, 1916. Bank and approximately 60 per cent of the total amount discounted during the same month Notes for Farm Implements. by the Kansas City Bank consisted of live- Your letter of June 27, relative to borrowing stock paper. money on your farm in order that you may JULY 12, 1916. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

396 FEDERAL BESBBVE BULLETIN. AUGUST 1, 1916. LAW DEPARTMENT. The following opinions of counsel have been serve Act, from being an officer, or director, or authorized for publication by the Board since both an officer and director in one member bank. the last edition of the Bulletin: The amendment to the Clayton Act, May 15, Provisos to Clayton Act Cumulative. 1916, known as the Kern amendment, consti- An officer, director, or employee of a member bank, who tutes a further exception and is added as a would otherwise come within the prohibitory language of fourth proviso to the second paragraph of the Clayton Act, may serve as a director, officer, or emsection 8. The amendment reads as follows: ployee of one other bank where the entire capital of one is owned by stockholders in the other, and at the same And provided further That nothing in this 7 time, under the Kern amendment, may, with the consent act shall prohibit any officer, director, or emof the Federal Reserve Board, serve a3 an officer, director, ployee of any member bank or Class A director or employee of not more than two other banks which are of a Federal Reserve Bank, who shall first pronot in substantial competition with the member bank. cure the consent of the Federal Reserve Board * * * from being an officer, direc- JULY 13, 1916. tor, or employee of not more than two other SIR: There has been submitted to this office banks * * * if such other bank, * * * for an opinion the question of whether an offi- is not in substantial competition with such cer, director, or employee of a member bank member bank. may, under the proviso contained in paragraph According to the usual rules of construction, 2 of section 8 of the Clayton Act, serve as a a proviso takes out of the operation of the director, other officer, or employee of not more body of the enactment that which otherwise than one other member bank where the entire would be within it. It restrains the generality capital stock of one is owned by stockholders of the previous provisions. (Savings Bank v. in the other, and at the same time, under the United States, 86 U. S., 227-236.) Kern amendment, serve as an officer, director, In the case of Deitch v. Staub (115 Fed. or employee of not more than two other banks Rep., 309) the court said, on page 314: which are not in substantial competition with The primary and usual office of a proviso is the member bank, provided the consent of the to except something out of a statute which Federal Reserve Board is first obtained. would otherwise, be within it. Its use is to take special instances out of a general class. As originally enacted, section 8 of the Clayton (Suth St. Const., sees. 222, 223; Gibbons v. Act contained three exceptions to its prohibi- Ogden, 9 Wheat., 191, 6 L. Ed., 23.) tory provisions, which excerptions were incor- See also Georgia Banking Co. v. Smith (128 porated in paragraph 2 of the section as pro- U.S., 174). visos and read as follows: Applying this rule to the three provisos (1) That nothing in this section shall apply mentioned above and to the Kern amendment to mutual savings banks not having a capital which follows them and forms a fourth prostock represented by shares. viso, it is apparent that each takes out.of the (2) That a director or other officer or emoperation of the prohibiting clauses of the ployee of such bank, banking association, or statute that which otherwise would be fortrust company may be a director or other officer or employee of not more than one other bank bidden. The substance of the amendment is or trust -company organized under the laws of that nothing in the prohibitory clauses of the the United States or any State where the entire Act as it stood at the time the amendment was capital stock of one is owned by stockholders in passed should prevent an officer, director, or the other. employee of a member bank from serving as (3) That nothing contained in this section shall forbid a director of Class A of a Federal an officer, director, or employee of not more Reserve Bank, as defined in the Federal Re- than two other banks which are not in sub- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

AUGUST 1, 1916. FEDERAL RESERVE BULLETIN. 397 stantial competition with the member bank, alike regardless of the amount of capital stock provided the consent of the Federal Reserve and surplus. Board is first obtained. The opinion of this office has been requested In the opinion of this office, therefore, an on the question of whether or not acceptances officer, director, or employee of a member of a member bank purchased by it before bank who would otherwise come within the maturity would continue to be treated as prohibitory language of the Act may serve as acceptances within the meaning of this proa director, officer, or employee of one other vision and subject to the limitations imposed. bank or trust company where the entire capital In other words, if we assume that a member stock of one is owned by stockholders in the bank has accepted drafts or bills of exchange other, and at the same time, under the Kern drawn upon it to an amount equal to its capital amendment, may serve as an officer, director, and surplus, and before the maturity of such or employee of not more than two other banks acceptances it purchased and carried in its which are not in substantial competition with assets 25 per cent of its own acceptances, the member bank, if the consent of the Federal would such bank be regarded as having out- Reserve Board is first obtained. standing acceptances equal to 100 per cent or Respectfully, acceptances equal to 75 per cent of its capital and surplus ? M. C. ELLIOTT, Counsel. In the opinion of this office the purchase of To Hon. CHARLES S. HAMLIN, such an acceptance cancels the obligation of Governor Federal Reserve Board. the bank, and so long as it is held by the bank it does not constitute a liability which may be regarded as an acceptance. When the mem- Member Bank Acceptances. ber bank executes its acceptance of a draft or When a member bank purchases its own acceptance bill of exchange it enters into a contract or before maturity such acceptance need not be included obligation to pay at maturity the amount in the aggregate of acceptances authorized by section 13. specified therein. Whether this payment is JULY 25, 1916. made at or before maturity the obligation is SIR: Section 13 of the Federal Reserve Act discharged. In this view member banks might as amended by an act approved March 3, 1915, legally deduct from the amount of acceptances provides in part as follows: outstanding those purchased and held by such Any member bank may accept drafts or bills member banks in considering the limit proof exchange drawn uj>on it and growing out vided by section 13 as amended. of transactions involving the importation or Of course, if a member bank subsequently exportation of goods having not more than six months' sight to run; but no bank shall accept disposed of its acceptance, either by sale or such bills to an amount equal at any time in hypothecation, thus renewing its obligation to the aggregate to more than one-half of its pay it at maturity, the acceptance should be paid-up and unimpaired capital stock and included in the amount outstanding. surplus, except by authority of the Federal Respectfully, Reserve Board, under such general regulations as said board may prescribe, but not to exceed M. C. ELLIOTT, Counsel. the capital stock and surplus of such bank, To Hon. CHARLES S. HAMLIN, and such regulations shall apply to all banks Governor Federal Reserve Board Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

398 FEDERAL BESEBVE BULLETIN. AUGUST I, 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 t l r p P ic h h t i i a l N a . - o. District No. 4—Cleveland. Di R st i r c i h c m t N on o d . . 5— Dist A ri t c l t a n N ta o . . 6— General business Good Less than usual Very good Very good Good Good. mid-year in nearquietness. "ly all lines Crops: Conditions Generally good Under average. Good, ex- Improved over last month, Fair to good 10 per cent damcept corn. except wheat in part of aged. Outlook Promising Not encourag- Satisfac- Excellent Favorable Fair ing. tory. Industries of tliG Busy; to a large extent Busy and Maximum of avaliable labor Fairly active, but All operating full district. on old contracts. optimis- and raw material supplies. damaged by time; plenty of Construction, build- Ahead of any of the Increasing. Slight in- Activity in building re- Normal Fair. ing. last 15 years. crease. ported; permit records show no increase. Foreign trade Better than last ... do Record in- Horses, mules, Limited but fair month, but not up to creases grain, cotton, the high point pre- in ex- tobacco, foodviously made. ports stuffs, metal, and im- coal. Bank clGsrinffs Increase do Increasing. Averaging 38% per cent in- 60 per cent increase crease over last July and over last year. 4 per cent increase over June, 1916. Monev rates Increase over last Marked in- Slight in- Commercial paper £ to \ per Easv; demand be- Do. month but below a crease and crease cent higher than last low normal. week or two ago. firm. recently; month. Railroad, post of- Increased Increasing Increases Post office receipts same as Above normal All increasing, esfice, and other re- reported. last month. Railroad re- pecially post ofceipts. ceipts based on loads fice and express. billed 3 per cent increase. Labor conditions... Fair, but still some- Garment work- Decrease Strike difficulties fewer. Complaint of scar- Normal. what unsettled. ers still on in num- Wages higher. Service city and high strike. ber of inefficient. wages. strikes; labor scarce, too high. Outlook For more conservative Satisfactory Encourag- Satisfactory almost without Promising; onlv Good. business and there- ing. exception. complaint wet fore for more lasting weather in agriprosperity. cultural districts. District No. 7— District No. 8—District No. District No. 10—Kansas District No. 11— District No. 12— Chicago. St. Louis. apolis. City. Dallas. San Francisco. General business Satisfactory Very active for Good Continues good Conditions good... Good. summer. Crops: Condition Good Wheat, one-half Excellent. Good Fait... Damaged in some 1915 harvest" sections quality good! Outlook Satisfactory Corn, tobacco, ...do Promising ....do..... Good. cotton, excellent. Industries of the Active Active .. . Active With few exceptions work- Fairly active Active district. ing to capacity. Construction build- Fair Slight decrease* do . Increased activity Show large in- 12 Der pen ining. allied lines crease. crease. active. Foreign trade Normal Horses and mules increase; Quiet and little Hampered by grain, slow; manufactured doing now. labor troubles. Bank clearings Increase : Increase for six A p p r ox- Increased.. Show slight in- 30 Der cent inmonths of imately crease. crease. year and last the same. Money rates Increasing:... Higher dis- No change Hardening Appreciably Tendency to incount and higher. crease. commerc i a 1 Railroad, post-ofP ce Railroads in- Increased Considerable gain Increase and otherreceipts. crease; post office, slight increase. Labor conditions.. Good Satisfactory Better Improved Labor well em- Unsettled. and labor in ployed and condemand. tented. Outlook do Bright Verv sood Promising Recent rains make Favorable outlook good. Remarks A condition of sus- Seasonable Demand tained prosperity in • weather has for monpractically all lines stimulated ey slowly throughout the sev- retail trade improventh district. and helped ing. crops. • Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

AUGDST 1, 1916. FEDERAL RESERVE BULLETIN. 399 GENERAL BUSINESS CONDITIONS. There is given on the preceding page a sum- of the Boston banks decreased from $33,769,000 mary of business conditions in the United States on June 17 to $16,680,000 on July 15. by Federal Reserve districts. The reports are Exchanges of the Boston Clearing House for furnished by the Federal Reserve Agents, who the week ending July 15 were $233,064,423 as are the chairmen of the boards of directors for compared with $171,806,604 for the correthe several districts. Below are the detailed sponding week last year, and $180,740,253 for reports as of approximately July 23 : the week ending June 17, 1916. Building and engineering operations in New DISTRICT NO. 1—BOSTON. England continue to show a considerable in- While business in almost all lines continues crease over the corresponding period last year. good, the conservative tendency which was evi- From January 1, 1916, to July 19, 1916 these dent last month in many lines of trade still con- ; contracts amounted to $114,890,000, or about tinues. The pressure to place new orders and $18,500,000 more than for the same period a to stock up heavily with raw material which year ago. was so prevalent a month or two ago, has, for the most part, disappeared. Bankers and Exports for the port of Boston for June, 1916, business men have for a good while been urging amounted to $13,315,376, as compared with caution. The present trend of, business is $11,255,012 for May, 1916, and $9,848,865 for more along the lines which these men have ad- June, 1915. Imports for June, 1916, amounted vocated and which tends to more permanent to $16,063,583, a decrease of $3,491,566 from prosperity. Apart from munition and allied May, 1916, and an increase of $2,147,830 over trades, general business is apparently receiving June, 1915. fewer foreign orders and domestic demands are Receipts of the Boston post office for June, more in evidence. 1916, show an increase of $85,531.37, or about The money market continues firm, although 12\ per cent over June, 1915, and receipts for rates are not up to the high level reached in the the first 15 days of July were $34,250.18, or early part of the month, and the tendency, ow- Si per cent, over the same period last year. ing to the increasing ease in the New York mar- Boston & Maine Railroad reports net operket following the influx of gold, is downward. ating income after taxes for May, 1916, as The surplus reserves of the Boston banks dur- $1,488,873, as compared with $754,968 the coring the last month have reached a lower point responding month last year. New York, New than at any time since the inauguration of the Haven & Hartford Railroad reports net oper- Federal Reserve system. Call money, 3 to 3J ating income after taxes for May, 1916, as per cent; commercial paper, 4 to 4|- per cent for $2,200,583, as compared with $1,738,273 for six months; year money, 4 to 4J per cent; May, 1915. town notes, fall maturities, 3-| per cent up- Crop conditions continue favorable, but the ward; 90-day bankers' acceptances, 2§ per cent prospect for hay, which was very promising, upward. is not so bright, due to the wet weather, which Loans and discounts of the Boston Clearing has made harvesting difficult and caused House banks on July 15 show an increase of much damage to this crop. The potato crop $4,194,000 over the preceding month, and de- is somewhat late, but all indications tend tomand deposits have decreased $10,610,000 in ward a good yield. The apple crop promises the same time. The amount due to banks on to be abundant. July 15 was $129,105,000 as compared with Business in the boot and shoe industry is less $135,521,000 on June 17. The excess reserve active. Retailers purchased heavily earlier in 53038—16 5 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

400 FEDERAL RESERVE BULLETIN". AUGUST 1,1916. the year and, therefore, are not disposed to add about 70 millions. The actual figures on July to their stock at the present level of prices. 16 were:-Loans, etc., $3,188,833,000; deposits, Leather is very high and this has necessitated $3,307,037,000; and excess reserves, $95,advances in the price of shoes. It is still a 109,470. little early for the new season's orders to begin The industrial situation shows little or no to come in heavily. change. Some slackening in the domestic The wool business in general is not as good demand for steel products, and the seasonal as it was a month or two ago, due to a large ex- quietness in leather manufacturing is partly tent to the fact that mills bought wool to cover offset by increased orders in both lines for many of their orders at the time of making con- export. It is reported that exports of unfintracts and still have quite a supply on hand. ished steel to Europe are nearly double the Taking over all of the wool in England by the quantity sent last year. Mills and factories British Government and placing an embargo on are busy. Labor is still scarce. A banker wool coming from New Zealand and Australia from outside New York City reports that in has very materially increased the demand for his section wages have been advanced as much American wool, and this wool is now selling at as the industries can stand, yet there are but a higher price than at any time for over 30 few signs of saving and thrift and many eviyears. dences of increased expenditure for luxuries. Reports from the cotton-mill centers indicate There is less than usual mid-year dullness in that with the beginning of another season there wholesale and retail trade. The hot weather has been some revival of buying and the im- in July stimulated the distribution of summer pression given is that buyers are more willing goods, which had accumulated on account of to enter into contracts now than they have been the inclement weather which prevailed in the for some time. spring and early summer. DISTRICT NO. 2—NEW YORK. Farmers in northern New Jersey are well The outstanding feature during the last satisfied with the condition of the crops in month was the sharp advance in money rates. that Section and are harvesting more hay than Commercial paper sold on June 1 at 3 to 3J they have had for years. In New York State, per cent, but is now 4 to 4J per cent. Call however, the agricultural outlook is not enloans were made on July 10 at 6 per cent, the couraging. Aside from hay it seems probable highest rate at this time of year since 1907. that all crops will be under the average. Pas- Lai\?e shrinkages occurred in prices of certain tures are in good condition, and the dairying speculative shares, and stock exchange securi- industry is prospering. ties are generally lower. The firm outlook in Statistics of the present compared with those the commercial paper market caused some compiled a year ago show large increases in borrowers to provide earlier than usual for exports, imports, and bank clearings, higher fall requirements. Higher money here was railroad earnings, and postal receipts, more followed by an advance to 6 per cent in the new incorporations, greater activity in building, Bank of England rate, which had remained at and fewer failures. 5 per cent since August 8, 1914. The United States Steel Corporation at the In the last six months of 1915 the New York first of July reported unfilled orders decreased Clearing House members increased deposits 300,000 tons, after showing continuous inabout 800 millions and loans about 700 mil- creases for many months. lions, but between December 31, 1915, and Bradstreets's index number shows the third July 16, 1916, these deposits decreased about successive decline in commodity prices since 160 millions and loans have been reduced April 1, 1916, Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

AUGUST 1, 1916. FEDERAL RESERVE BULLETIN". 401 Great activity continues in the shipyards. The present favorable weather conditions The number of vessels built in the United will materially help all crops, which are re- States for the fiscal year 1915-16 was 1,030 of ported to be in normal condition, with the ex- 347,847 tons, against 1,266 of 215,711 tons in ception of corn. Hay and rye are reported to 1914-15. be especially good. Fruit of all kinds is plen- DISTRICT NO. 3—PHILADELPHIA. tiful. The continued satisfactory growing Business continues very good, and the gen- weather is pushing along the new tobacco crop. eral outlook is encouraging. A conservative The shortage of old tobacco is creating a serious tone prevails, and retail business is being sus- condition in the Lancaster district, as dealers tained by the country's remarkable buying have very little old goods on hand. power. This is to-day probably greater than Wholesale distribution of dry goods, woolever before. ens, hosiery, underwear, notions, millinery, Practically all the principal departments of etc., is in well maintained volume, and reports trade and industry continue to report the prev- from the wearing-apparel trades are exceptionalence of very satisfactory conditions. In ally encouraging, liberal orders having been some lines there is the usual quieting down cus- received for fall and winter requirements. tomary at this period, but in almost every in- Numerous inquiries indicate that more interest stance it is not nearly so pronounced as in is being taken by retailers than is usually former years, and its duration is expected to be shown at this time. considerably less. Bradstreet's report shows 50 failures in the Many reports refer to scarce and expensive district during the month of June, compared labor, which, together with the high prices of with 48 in May, 67 in April, 101 in March, 103 raw materials, have had a tendency to restrict in February, and 96 in January. production. Grocers report trade active and collections Chemicals and dyestuffs are a trifle quiet, improved. Sugar has slightly advanced, but with prices unsettled because of reported im- the demand is small. Provisions are firm and ports. Paints are in fair demand; spring trade in fair demand. was good and the outlook is bright. Seashore The demand for hardware shows no evidence trade in drugs and sundries is active. of lessening and it continues to sell with con- Anthracite coal is quiet and unchanged in siderable freedom. The demand for electrical price, but the demand for bituminous is greater supplies, especially in connection with building than the supply, and spot sales are being made operations, is very good. at steadily advancing quotations. Petty strikes The iron and steel trade is still very active, continue in both the hard and soft coal regions, with an immense foreign business on hand and and some collieries are 30 per cent short of men. in sight. The railroads have not been large Cotton yarns hold firm, with spinners in a buyers of late, owing to the high prices now prestrong position. Prices are still extremely vailing for various materials. From various high, as spinners seem to be able to maintain sources it is learned that many concerns their firm position by reason of apparent scar- throughout the district have plans for large city of yarns for early delivery and orders on amounts of construction work, to be undertheir books for some time ahead. This high taken as soon as the high prices recede. This, level has no doubt acted as a check to any de- taken with the flourishing condition of the velopments of extreme activity. Tape mills shipyards, makes it appear that the iron and are well sold up, and recent bids requested by steel industry has an exceptionally long and the Army for these goods found deliveries bright future before it. The foreign business is offered which were entirely too late for present also expected to continue on a large scale, reneeds. gardless of whether the war ends or not. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

402 FEDERAL RESERVE BULLETIN. AUGUST 1, 1916. Sales of leather are not, on the whole, either moved 312,264 loaded cars, compared with large or numerous, but there is no accumula- 283,686 in June, 1915, and no idle cars were tion, and the situation is very strong. The reported. market is alive with inquiries from abroad. Shipbuilders have all the work that they can White and fancy goat leathers are in inadequate do, and business is unusually favorable. The supply. Shoe factories are quite busy, with an construction of steel merchant ships has shown abundant demand for labor. exceptionally heavy growth in the last 12 There has been no particular change in lum- months. The Delaware River yards have ber, business being rather quiet and the tenden- orders for and are building 79 ships of 330,963 cy of most grades easy. Building operations tons. With the yards running at capacity, are on a satisfactory scale. The following table and many orders on hand, and considering the shows building operations for the months of length of time necessary to complete a vessel, March, April, May, and June, 1915 and 1916. shipbuilding plants will be busy for a long time to come. Number of permits. Estimated cost. The silk situation is very favorable, plants running to the fullest capacity. There is a 1915 1916 1915 1916 better demand in broad silks, and the raw-silk market is decidedly firm. Philadelphia 3,724 3,366 $15,581,215 $20,756,880 193 163 796,100 801,263 Manufacturers of textiles are reported as Allentowri 192 212 615,455 1,089,420 Trenton 386 373 1,129,479 1,091,397 being especially busy, and there is every indication that fall and winter business will be There has been a strengthened demand for extremely active. Some mills have received money for commercial use, which, coupled with substantial orders from the United States falling bank reserves, has forced up money Army for outing shirts, hosiery, and underrates slightly. The amount of excess reserves wear; The general tendency continues in favor of the members of the Philadelphia Clearing of higher prices. House have been reported as follows: While many commodities have been subject to fluctuations or have reached the crest of the Percent wave and declined again, wool has not only Amount. a r b e o q v u e i l r e e g - al maintained a very high level of values; but ment. has even made a further advance during the past month. Trading has not been especially July 15,1916. $22,538,000 4.4 Jan. 15,1916- 49,377,000 10.0 active, as many mills have stocks on hand to July 17,1915. 48,885,000 11.2 Jan. 16,1915. 24,219,000 6.5 last for some time. Further advances in prices are even predicted, because of the belief Eastbound and westbound freight traffic that the strict embargo on all wools from over the Pennsylvania Railroad at Lewiston Australia, New Zealand, and the British Isles Junction for the first two weeks in July inwill materially curtail this country's supplies creased 8 per cent over the same period of last during the coming season. Carpet wools are year. There was a decrease of 14.3 per cent going along very quietly with little or no dein eastbound empty cars, and an increase of mand. Mills seem to be well employed, but 9 per cent in westbound empty cars. The they buy wools only when they need them. movement of coke, eastbound, increased 73.4 per cent, and moving west, miscellaneous ton- DISTRICT NO. 4—CLEVELAND. nage increased 12.5 per cent. Miscellaneous Business in district No. 4 is steady, with eastbound tonnage increased 5 per cent. In conditions practically unchanged from 30 days June of this year the Lehigh Valley Railroad A conservative tendency noted in sev- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

AUGUST 1, 1916. FEDERAL BESERVE BULLETIN. 403 eral lines has strengthened the situation, with year. Below is a comparison of the clearing no appreciable decrease in volume. Money figures for the first 15 days in July, 1916, and rates have stiffened one-half per cent over last for the same period last year. month and range from 1 per cent to 1J per cent higher than those quoted at the end of Per cent July 1-15, r July 1-15, Increase. of inthis first quarter of the year. This reflects 1916. 1915. crease. the general firming of money rates and indicates a better demand for funds which has Cleveland... $95,475,536 $62,742,680 $32,732,856 52.17 Cincinnati... 76,881,000 61,348,350 15,532,650 25.31 arisen since the published reports to the Comp- Columbus... 26,527,300 15,224,800 11,302,500 74.23 Pittsburgh.. 144,260,319 109,819,039 34,441,280 31.36 troller on June 30. Toledo 21,651,889 15,016,752 6,635,137 44.18 Youngstown 7,257,893 4,200,398 3,057,495 72.79 A comparison of deposits and loans of the Total.. 372,053,937 268,352,019 103,701,918 38.64 member banks in the six large cities of the pistrict is given below: Pay-roll requirements are at maximum, and there is a scarcity of $20 bills. Deposits. The situation in the steel business is regarded as firm. The export demand is such as to sug- June 30,1916. May 1,1916. June 23,1915. gest maintenance of present high prices for Cleveland $120.192,584 $114,063,431 $91,865,189 sometime to come. Protection of business Cincinnati 89,798,051 86,161,980 70,701,693 Columbus 35,477,510 30,507,380 26,725,910 already on the books is an additional reason Pittsburgh.. 282,652,569 269,446,777 194,655,842 why no one asks or expects a reduction of rates Total reserve cities 528,120,714 500,179,568 383,948,634 Toledo 36,898,119 35,598,953 25,794,839 at this time. Youngstown 16,405,857 16,380,410 11,304,863 Iron-ore shipments are going forward so rap- Total 581,424,690 552,158,931 421,048,336 idly that some leading vessel men are predict- Loans, discounts, and unpledged ing a movement of 60,000,000 tons. investments. Pig iron is dull, and there is some slowing up in demand, but no signs of weakness. June 30,1916. May 1,1916. June 23,1915. The sheet and tinplate market is irregular. Cleveland $92,313,981 $90,171,556 $70,459,572 Workers get an advance of 4 to 5 per cent com- Cincinnati. 75,815,948 73,722,686 63,201,989 Columbus 24,326,195 23,558,865 21,473,920 mencing July 1. Pittsburgh 211,788,880 205,912,884 169,704,192 Shipments of electrical goods keep up won- Total reserve cities 404,245,004 393,365,991 324,839,673 Toledo 32,608,810 30,974,873 23,691,355 derfully with some delay on account of inability Youngstown 15,182,791* 13,804,871 11,888,218 to obtain raw materials promptly. This dis- Total 452,036,605 438,145,735 360,419,246 trict is receiving its share of the volume in this Increase, June 30,1916, Increase, June 30,1916, industry. over May 1,1916. over June 23,1915. Manufacturers of automobiles report a record Invest- Invest- trade in farming districts. Deposits. ments. Deposits. ments. Demand for bituminous coal continues beyond ability to produce, the only difficulty be- Cleveland $6,129,153 $2,142,425 $28,327,395 $21,854,409 Cincinnati 3,636,071 2,093,262 19,096,358 12,613,959 ing scarcity of labor available for mine work Columbus 4,970,130 767,330 8,751,600 2,852,275 Pittsburgh 13,205,792 5,875,996 87,996,727 42,084,688 and a shortage of cars in some quarters. Total reserve Prices are good and coal is moving forward cities.... 27,941,146 10,879,013 144,172,080 79,405,331 Toledo. 1,299,166 1,633,937 11,103,280 8,917,455 freely on the lakes. By a rather close vote Youngstown........ 25,447 1,377,920 5,100,994 3,294,573 bituminous miners in district No. 5, which in- Total 29,265,759 13,890,870 160,376,354 91,617,359 cludes most of western Pennsylvania, decided The clearings of these same cities for the to accept agreement negotiated last April first 15 days in July show an increase of about which runs for two years. Coke market is 4 per cent over the same period in June of this active at slight recession in prices. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

404 FEDEBAL RESERVE BULLETIN. AUGUST 1,1916. Traction travel in metropolitan districts of Per cent the large cities is equaling and making slight June, 1915. June, 1916. Increase. of increase. gains over high records of 1913. Railroads report loads billed in this district as 34 per cent Cleveland $286,620.90 $330,444.32 $43,823.42 15.28 over July of 1915 and 3.3 per cent over May of Cincinnati 233,221.59 244,871.61 11,650.02 4.99 Columbus 88,004.25 100,505.09 12,500.84 14.20 this year. Pittsburgh 287,010.59 360,165.03 73,154.44 25.48 Toledo 84,340.30 91,448.02 7,107.72 8.42 The glass trade is probably in better shape Youngstown 22,659.23 25,379.89 2,720.66 12.00 for operation when cool weather starts than it Total 1,001,856.86 1,152,813.96 150,957.10 15.06 has been in years. Shoe manufacturers report demand for fall goods very strong. Midsummer business in mercantile lines is normally quiet, but based on averages a new Garment manufacturers state that orders for record in volume of business has been made fall trade are very satisfactory, large gains over for the first six months of the current year. 1914 and 1915 and slightly better than 1913 The warm weather has materially improved being shown. General demand in the lumber the crop situation. The country looks well. trade has settled down materially in the last Corn and sugar beets have grown wonderfully 30 days, but this has not affected the activity in the last three weeks. The hay crop will be in the timber business. a record one in this district. Reports on The tendency in collections is toward a wheat are far from satisfactory, and in some healthier condition, since concerns appear to be parts of the district only half a crop is reported. using up reserve stocks of materials which will The growing crop of tobacco is of average result in liquidation of amounts tied up in inacreage, but the number of plants standing ventories. per acre is well above the average. It is esti- Labor difficulties not so noticeable this mated the crop will be 10 per cent above normonth, but scarcity still continues. mal and of good quality. Live stock and There is reported activity in building, and dairy interests are prosperous. real estate transactions all over the district, although it is not reflected in the June record DISTRICT NO. 5—RICHMOND. of building permits given below: A heavy loss resulted from the storm which passed over much of this district on July 15. Number of per- Valuation. mits. Damage was particularly heavy in the Pied- In c o r c r e r a e d s a e e s - . e c P e e n r t. mont section of Virginia and in North and J 1 u 9 n 15 e . , J 1 u 9 n 1 e 6 , . June, 1915. June, 1916. South Carolina. Not only were some seventy lives lost but property damage reached millions Cleveland...... 1,431 1,296 $2,378,510 $2,742,570 $364,060 15.30 Cincinnati 1,479 1,560 940,635 1,082,580 141,945 15.09 of dollars. Fifteen millions in property loss Columbus 285 289 410,370 557,370 147,000• 35.82 Pittsburgh . 377 368 1,212,472 940,762 1271,710 i 22.36 has been given as an estimate, but this is re- Toledo 273 380 762,845 595,104 1167,741 i 21.98 Youngstown... 115 139 433,080 279,025 1154,055 135.57 garded as too high. Some small towns were Total 3,960 4,032 6,137,912 6,197,411 59,499 .96 practically swept away and larger ones seriously damaged. Dams, mills, warehouses, dwellings i Decrease. and crops suffered in many cases severely. Purchase of the Nickel Plate Railroad by The main line of the Seaboard Air Line and Cleveland interests is expected to result in a Southern Railways lost bridges and suffered large amount of new construction. damage, while all of the western lines had seri- There has been practically no change in post- ous difficulties. The western lines of the Noroffice receipts from figures of last month. Fol- folk & Western and of the Atlantic Coast Line lowing are comparative figures of the six large also suffered considerable damage. Irregular cities in the district: mail service has resulted and demoralization Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

AUGUST 1, 1916. FEDERAL RESERVE BULLETIN. 405 which makes the preparation of a correct re- which will stimulate demand, the shortage of port of trade, agricultural and other conditions labor is more acute, making it difficult if not for this district difficult. impossible to keep shipments up to the present Summer dullness has taken the edge off of volume. This is calculated to stiffen prices business. This is particularly apparent in new and to create a rather trying and difficult situbusiness. The volume of manufacturing and ation. Coastwise shipments are normal -and merchandise shows but little diminution. Re- generally on contract. Foreign shipments are ports generally are favorable and railroads are largely to Italy and South America. busy, earnings in this district indicating a net Corn acreage is large and crop in fair condition increase of 15 per cent or more. Earnings for but has suffered on low grounds from too much July, however ,will probably be seriously affected moisture. by the storm damage. Clearings show an in- The Government reports indicate a 12 per crease of about 60 per cent over last year and cent increase in the entire cotton belt, North collections are better than usual at this time of Carolina and South Carolina both being above the year. this average. Crops on high ground are prob- Excessive rainfall has created spotted and ably at about the average, but there is too uncertain crop conditions. Unless weather much moisture generally and many sections conditions improve, considerable deterioration report the crop backward and in bad condition. is anticipated. Kesults from fertilizers are con- It is difficult to estimate these conditions, but sidered uncertain owing to lack of usual propor- unless dry weather prevails considerable detion of potash. Crops have been better culti- terioration may be expected. vated than usual and early plantings are standing Cotton mills continue to report prosperous better than later ones. The returns in trucking conditions. Several mills were damaged by the sections along the coast for beans, melons, pota- storm and a number forced to shut down, toes, etc., have been unusually good and farm- temporarily, by interruption of power. ers in this territory are more prosperous than Furniture plants are working full time. for several years. One small community re- Sales are chiefly in the East, North, and Northports that the net return from its shipments of west. Collections are good, but prices for raw garden truck will probably aggregate $500,000. material high and manufacturers are disposed Canned-goods business is reported healthy and to be conservative about following the high the outlook exceptionally good. One corre- prices too far. spondent calls attention to the fact that he has Every concern in the iron and steel business raised four crops on the same land. First, reports prosperous conditions. Bookings for Irish potatoes with corn planted between the future delivery insure activity for several rows; after potatoes have been dug, a second months ahead. Baltimore is anticipating explanting of corn has been put in, and after the ceptional advantages from large expenditures first corn planting has been gathered, this was running in the millions by the Bethlehem Steel replaced by sweet potatoes. Co. in the development of the plant of the Richmond reports a 20 per cent increase in Maryland Steel Co., which it controls. building and there is some activity reported Labor is well employed. Farm labor is from North Carolina. General reports indicate scarce and high. that building is being retarded by the high price There is a marked interest in stock raising of materials. and good forage crops are reported. One cor- The bituminous coal movement continues respondent reports the establishment of a hog heavy and 50 per cent in excess of this period packing plant, the purchases of which have supfor last year. Some decrease is anticipated. plied enough money to the neighborhood to pay While freight rates have a tendency to soften farmers7 labor bills for chopping out cotton. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

406 FEDERAL RESERVE BULLETIN. AUGUST 1, 1916. The lumber trade is still complaining of light per cent. Cotton in Mississippi and parts of demand and demoralized prices. Mills report Tennessee and Florida is reported in good that the good prices lasted only for about 60 condition. Conservative estimates agree that days in the spring. Present prices hardly the crop has been damaged at least 10 per cent cover prices of production, and some mills have throughout the district. shut- down. Thirty days ago indications pointed to the Deposits are the highest at this season of the largest and best corn crop in many years, but year for several years past. Kates are firmer, the damage sustained by the recent storms but many banks have not been borrowing this and overflows has greatly reduced the prospect. year and have abundant funds for the use of Much corn was blown down, and the rivers and their respective communities. creeks damaged all crops in the lowlands. There is a full acreage of tobacco. The crop Alabama alone claims to have sustained a loss looks pretty well, but there is complaint of too of $6,000,000 on its corn crop. Corn in the much rain. uplands may somewhat benefit from the rains and offset the loss in the lowlands. Reports Manufacturing is active and jobbing in good from throughout the district generally indicate volume, although somewhat quieter than the at least a 10 per cent damage. recent past. Prices are high and profits better than usual owing to the advance in price of Grain reports show little improvement over goods previously purchased. last month's reports, and indications are that Trade good in shoes, leather, and trunks, the yield will be considerably decreased. In and results satisfactory. Prices of raw ma- the Tennessee wheat fields rains have con- ' terials are dangerously high and manufac- tinued to interfere with the thrashing of wheat turers disposed to go slow in making purchases. and caused damage to wheat not thrashed. The damage from rust is serious. DISTRICT NO. 6—ATLANTA. Recent reports on the citrus fruits are more The farming element in the Sixth District favorable for next season's crop. Consideris depressed over the conditions following the able damage was done to the peach crop by storms and continuous rains for the past few rains, with curtailment of the melon crop. weeks. Business conditions in general have A total of 40,608 carloads of fruit and vegebeen considerably disturbed. Most of the tables were shipped out of Florida during the damage done has been in the States of Alabama season, with good prices. and Georgia, with Alabama probably the Tobacco is in strong demand, the only regreater sufferer. The flood damage through- striction being lack of shipping facilities for out the section was confined to the crops and export. There is but a small amount of tophysical properties, with very little loss of life. bacco being held by the farmers, and the sale The cotton crop has been materially dam- season in the loose-floor houses is practically aged by the excessive rains, giving grass and closed. The rehandling houses have closed the boll weevil the advantage at a critical for the season. Growing crops in the sections period of the growing season. Rains loosened that have had too much rain are not looking the ground around the roots, and high winds well. Good weather conditions will, however, easily uprooted many thousands of plants. make a good crop possible. Cotton left standing has big stalk and sappy New Orleans reports some increase in the. plant, with little fruit. Practically nothing amount of sugar received. This is perhaps due can be done to offset the injury until the land to the fact that planters are clearing out their drys sufficient for cultivation. Alabama esti- sugar houses and making ready for the new mates are of 20 per cent damage, Georgia 10 crop. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

AUGUST 1, 1916. FEDERAL RESERVE BULLETIN. 407 Tho rice market continues strong with very high in price, with the possible exception of little rice available. Little change is noted in building brick. the coffee market. The jobbers and wholesalers are doing very Due to bad weather the lumber industry has little "fill-in " business, and report light orders been largely curtailed in output. The demand from their salesmen on account of storms. is strong with good prices prevailing. Collections are reported somewhat slow by The naval stores business has increased some- wholesalers and jobbers, which is not unusual what. While this industry can not be said to for this season of the year. Retailers, however, be over active there are signs of improvement. say collections are about normal. Although Operators and jobbers are more optimistic. this is usually the dullest period of the year, While there is no great demand for coal there bank clearings continue to show increase. has been no material decrease in output up to In the Atlanta investment bond and securithe past two weeks. Some of the mines were ties market there has been less offering of closed down by the recent storms. Coke, pro- bonds during the past few months than for any duction and demand continues very active and previous six months, due to scarcity of money the supply is far from being as large as could be for investment purposes. In the New Orleans handled. In east Tennessee zinc mining is district there appears to be an improvement in very active. Operators are spending a great funds available for investments. deal of money in development work and opera- The demand for money for strictly commertions. One company at present employing cial purposes is increasing and rates stiffening. 2,0GG men will shortly erect another plant that Rates seem more likely to go higher than to will employ 6,0(30 to 8,000 people. These com- recede to previous low level. panies are reported to be spending over Post office receipts and express receipts $25,000,000 in the construction of eight continue to. show large increases throughout dams. Georgia and Alabama. The Atlanta post The pig iron and steel market show very office shows 17,148 postal orders issued in June little change. Prices are firm and manufac- this year as compared with 9,175 the previous turers manifest no uneasiness. The blast year. Express receipts also show large infurnace of the Woodstock Operating Co., at creases in these and other States in the district. Anniston, Ala., will be ready for operation DISTRICT NO. 7—CHICAGO. about August 1. There is very little accumu- Within the past month there has been a lation of iron in the yards and indications noticeable stiffening of bank rates, ranging point to an indefinite period of operations. from one-half of 1 per cent to 1 per cent, due Bright prospects are reported for the placing partly to the increased demand from industrial of additional steel industries near Bessemer, concerns and the demand from country dis- Ala., by the United States Steel .Corporation. tricts in connection with handling the crops. Cast-iron pipe manufacturers are receiving A definitely optimistic tone is evident in the an increased volume of domestic business and letters received from bankers throughout this export orders are increasing. district, who report a generally satisfactory There is improvement in live stock and outlook in their respective territories, with a cattle. The Tennessee market is reported better return on their loanable funds. In active, with advance sales for October delivery most sections a successful season and prosof cattle at 8 cents on the farm. perous fall are anticipated although a few com- Very little building or construction work of munities will probably suffer from short crops. any magnitude is being done in the district. Labor seems well employed, and it is under- Building operations are still slow, except in a stood that in Chicago the United Charities are few localities. Building materials continue now supporting no families which include an Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

408 FEDERAL RESERVE BULLETIN. AUGUST 1, 1916. able-bodied man, an unusual condition. The said to be in good demand and concerns making question of obtaining help for haying and har- steel wheels claim equal or greater sales than vesting is coming to the fore and may prove a during an ordinary year. A fair volume is serious problem as the season advances. generally anticipated. Bond houses report a decline in price in Automobiles.—Difficulty in securing delivinvQstment securities and a heavy call upon eries of raw material is said to hamper this the surplus capital of investors from foreign industry, which still reports heavy demands liquidation and new foreign government loans. for cars. The prosperity of the manufacturers The July investment demand is said to have seems continuing, and with money-producing been more or less of a disappointment, and crops through the district business should rethere is prospect of a rather dull market during main good at least for the next few months. the summer months. Building operations are being somewhat cur- The crops in this district have benefited tailed, due to the high cost of material and materially through the hot weather of the past difficulty in securing labor. Brick is reported few weeks, and corn is now reported as in nor- in considerably better demand than last year, mal condition by almost all correspondents. with the June increase larger than the probable The hay crop is of good quality and quantity showing for July. Cement shows only fairly and favorable weather has aided the cutting satisfactory results, the volume of sales has not which is in progress. Illinois reports wheat changed appreciably, and there is reported a fair, oats good, and prospects for a normal producing capacity for cement in the United acreage of corn. Indiana seems to have a States of some 25 per cent in excess of the considerably decreased acreage of both wheat largest demand the country has ever seen. and oats, owing to heavy rains during the past This condition should suggest caution in protwo months. Corn appears to be in fair supply, moting new production. Present indications and recent hot weather has been beneficial to are that totai consumption of cement this all crops. Peas have furnished one of the calendar year will be slightly less than last smallest crops on record. Iowa authorities year. report excellent conditions with favorable pros- Coal.—Current movement is comparatively pects. The corn crop promises a normal yield, light, as the stocks in consumers7 hands are not while oat acreage is reported increased. Whe^t yet exhausted. Labor shortage at consuming will probably be less than the average crop. centers is also looked on as one of the con- Potatoes and truck are good, but rains would tributing causes. The shippers' controversy be welcome. Michigan, while still a little be- with the railroads is reported as adjusted on a hind, has been gaining during the hot weather, mutually satisfactory basis with the exception and a fair yield of oats, wheat, and corn is of one carrier. The possibility of a car shortanticipated after giving consideration to the age in the fall is being watched by operators, decreased acreage. Fruit is reported in good as during the early fall months an improved condition. Wisconsin with favorable weather demand for coal is anticipated. Collections conditions has been inproving; corn is better are reported fair; better in the country than in but not up to normal. Pastures look good, the city. but the pea crop, it is said, will be short. Distilling and brewing.—The demand for Agricultural implements.—The high price of alcohol for munitions is said to be slackening steel and steel products has brought about materially, bat there are rumors of more orders, some decrease in sales in this line, and it is and the general whisky business is on the upinteresting to note that one manufacturer grade. The question of prohibition is still reports a growing demand for repair parts and causing uneasiness. Breweries are said to be extras to fit up old machines. Tractors are enjoying better business than last year, and Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

AUGUST 1, 1916. FEDERAL RESERVE BULLETIN. 409 some establishments are pushing the sale of Leather.—Reports indicate a large volume, temperance beverages to which they can high prices, and a strong demand from shoe adapt their machinery. manufacturers, harness makers, etc. Hides, Dry goods.—Sales are reported as generally tanning materials, and dyestuffs are at high better than last year, but this is more or less values, with no immediate prospect of decline. the quiet season and the crop situation is care- A large fall business is in prospect and colfully watched as a guide to the fall volume. lections are generally good. Leather belting The high price of merchandise is causing some is meeting with a satisfactory demand, but hesitation on the part of retailers who feel that buyers, on account of the high cost, are somea conservative purchasing policy at this time what inclined to investigate substitutes. Up will pay. Most authorities are of the opinion to date this has had no marked effect, but that the fall trade in this district will prove manufacturers are carefully watching the substantial. tendency. Furniture.—Manufacturers are having trouble Live stock.— High prices prevail for cattle, securing certain commodities, and the higher hogs, and sheep compared to previous years cost of raw material has brought about a higher with no material reduction in sight. The supselling price. Sales, while reported not up to ply of cattle is none too large, immature stock the anticipated amount, are said to be satis- has come to market, and farm, activity is to factory and there apparently is some tendency some degree holding back other shipments. to care for future wants on a consumption Among by-products, tallow and grease show "basis. Collections are good. some recession, fertilizer furnished a good vol- Grain markets.—There has been an excellent ume during the spring season, as did glue. export inquiry for wheat, corn, and oats during Wool and hides are reported in strong the past month, and threatened damage to demand. wheat in the Northwest has strengthened this Lumber.—This is the slow season of the year grain. Farmers are said to be marketing some with lumber companies and there is a tendency of their grain holdings on the present strong among retailers to mark time and watch develmarket. Authorities look forward to a good opments. Such indications of strengthening movement of new oats and new winter wheat. in this market as exist do not appear to be The quality of the new wheat is reported ex- likely to affect matters much in the near future, cellent, and there is a considerable demand for but there is hope that by fall some benefits may it from milling establishments. accrue to this industry. Groceries.—Sales in this line have fallen off Mail order.—Increased volume in this disduring the past month, and buyers are holding trict is reported with a strong demand for house T^ack on their sugar purchases owing to the furnishings of good quality. high price of this commodity. In other grocer- Pianos.—Compared to last year an improveies the demand is satisfactory, and the pros- ment is noted and the manufacturers report an perous outlook in farming sections leads increased demand for pianos, with collections authorities to believe in good fall activity. good. Haw materials are in some cases reced- Hardware.—The market is still strong with ing. The manufacture and sale of harps has merchandise rising in price. This is generally greatly increased in this country owing to the a slow period of the year, but compared with decreased supply from abroad. the same time last year an improvement is re- Steel.—Activity is continuing, the outlook is ported. Some of the commodities are showing good, and the demand strong. Collections are signs of easing off in price, and when the farm- reported satisfactory. Seasonal dullness in ers come into the market in the next few agricultural communities is taken up in other months a substantial demand is anticipated. quarters, but there seems a slight tendency Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

410 FEDERAL RESERVE BULLETIN. AUGUST 1, 1916. toward softer prices and conservatism in pur- and June, 1916, compared to the average of the chasing at the going rate is evident. same three months of 1915, 1914, and 1913. In Watches and jewelry.—A good quantity of almost every case an increase is noted in shipwatches is demanded by the trade and general ments, a corresponding increase in collections jewelry is meeting with sales considerably in and a decrease in past due accounts. The advance of a year ago. Manufacturers have amount of unfilled orders on hand June 30, settled their labor troubles and gold and plati- 1916, seems to be unusually large and in sevnum workers are said to be engaged full time. eral instances merchants have reported a record An active autumn trade is in store according to business. One wholesale dry goods house reauthorities in this line. ports increases in shipments ranging from 115 Wool and woolens.—There is still a dull mar-to 144 per cent in the States wholly or in part ket in wool, with prices held firm. Mills are within this district. Another house reports, reported as running on supplies purchased the "We anticipate the biggest business we have early part of the year, but a better market is ever had.'; One of the largest shoe houses in anticipated. D}^estuffs are somewhat easier. St. Louis reports shipments for April, May, and Woolen clothing is in strong demand and distri- June this year as 72 per cent larger than the bution is satisfactory. There are some indica- average for the same three months of 1913, tions that local dealers who overbought to 1914, and 1915. A hardware company in Fort cover their requirements are revising their Smith, Ark., reports an increase of 31 per cent orders. in their shipments and their comment on general Clearings in Chicago for the first 21 days of business and agricultural conditions is "Fine, July were $1,152,000,000,. being $249,000,000 much above 10-year average.;; A report from more than the corresponding 21 days of July, Memphis on general conditions reads: "Very 1915; and $1,000,000 more than in the first 21 favorable and improving.;; Reports from jobdays of last month. Clearings reported by 22 bing interests in Louisville are practically the cities in the district outside of Chicago amounted same. to $229,000,000 for the first 15 days of July, During the past month, the Government has 1916, as compared with $183,000,000 for the come into this market for Army supplies, and first 15 days of July, 1915. Deposits in the this has been a somewhat noticeable factor in eight Central Reserve City member banks in the activity noted. Contracts for this account Chicago were $614,000,000 at the close of busi- include shoes, drawers, undershirts, ponchos, ness July 20,1916, and loans were $428,000,000. soap, leggings, blankets, bed sacks, tents, medi- Deposits show a decrease of approximately cines, hardware, and other articles. $15,000,000 during the past month and loans There has been more seasonable weather a decrease of approximately $16,000,000. since the latter part of June, and this has stim- DISTRICT NO. 8—ST. LOUIS. ulated retail trade. Reports from department Business interests throughout this district stores indicate a satisfactory business and with report an active trade equal to if not exceeding the increased buying power of the people, the that of the past few months. With but few ex- outlook continues favorable. ceptions merchants and manufacturers report The condition of the building trades does not increases in shipments, excellent collections, and seem to be as active as that of other lines. heavy orders for future delivery. The outlook Many of the allied lines report increases in their seems to be entirely favorable although there business, but the total building permits in is a noticeable undercurrent of conservatism. Louisville and St. Louis for June, 1916, shows a Reports have been received from jobbing slight loss as compared to June, 1915. interests in all of the larger cities of the district Receipt of the St. Louis post office show a giving figures on their business for April, May, slight gain forJJJune, 1916, as compared to June, Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

AUGUST 1, 1916. FEDEKAL KSSEKVE BULLETIN. 411 1915. The gain was not as large as the in- The wheat crop has now been harvested in creases noted for the earlier months of the year. all parts of this district, but the final figures The gross earnings for June of some of the are, of course, not available. Reports from railroads operating within this district are now private sources indicate that the quality of the available and all of the five systems reporting crop is much superior to last year. show substantial gains. Further indications WHEAT. of the general activity is found in the number of 000's omitted. surplus cars on hand July 1 as compared to June 1, which shows a decrease of about 3,000 cars. co T nd h i e ti r o e n h s a s i n b e t e h n is l i d tt i l s e t r o ic r t n , o a c n h d a n th g e e i s n it t u h a e t i l o a n b o i r s Co Ju n 19 l d y 1 i t 6 i 1 . o , n a 1 v 0 e - r y a e g a e r . c 1 F o 9 o 1 J n 6 u r d , e l i y c t f i a r o 1 s o n t m , . es T t 1 i o 9 m 1 ta a 5 l t . e, f c r C o o 1 m n h ,1 i d a n 9 n i . J 1 t g i u 6 o e n . n e believed to be satisfactory. The total of commercial failures for the six I In ll d i i n a o n i a s.... 1 1 6 9 , , 5 0 3 9 9 0 5 4 3 7 , ,3 2 0 0 0 0 + 4- 1 2 months ending June 30, 1916, for the States Kentucky. 9,498 9,900 Missouri... IS, 935 34,108 0 located either in whole or in part within this Tennessee. 8,771 9,030 -5 district show a decided reduction both in num- Total. 72,833 153,538 ber of failures and in total of liabilities as compared to the same period of 1915. The prospect for the oats crop continues favorable. The table below is taken from the Receipts of cattle, hogs, and sheep at the Government report of condition as of July 1 National Stock Yards, 111., for June show suband indicates a yield somewhat smaller than stantial increases as compared to June, 1915, 1915 but well above the 10-year average. Rewhile there is a decrease in the receipts and shipments of horses and mules for the same ports from Illinois are especially favorable. period. Reports indicate that the Govern- OATS. ment is in the market for 30,000 to 40,000 head QOO's omitted. of horses and mules suitable for Army use, and i m t a s r e k e e m t. s probable that this may stimulate the Co Ju 1 n 9 l d y 1 i 6 ti 1 . o , n a 1 v 0 e - r y a e g a e r . . C c J h o u f a n r n n d o e g i m t e i 1 o . i n n c F o J o n f u r r d o e l i y m c ti a o 1 s n t . es F t 1 i i 9 m n 1 a a 5 l t . e, Climatic conditions from the latter part of June to the present writing were in the main Illinois 91 79 -1 172,993 195,435 Indiana 86 78 —1 61,989 65,520 favorable for agricultural development. Prior Missouri 89 74 1 39,331 31,850 to that time cool, rainy weather had somewhat 274,313 292,805 hindered both the planting and cultivating of the principal crops, and therefore the arrival of We also give a report on the condition of hot, seasonable weather was welcomed. Under corn as of July 1 taken from the Government this stimulus crops have developed rapidly, al- report of that date for the States wholly or in though at this writing a few complaints oi part within this district. The percentage of drought are noted. condition on July 1, 1916, in the principal corn There are given below figures on the wheat, producing States in this district—that is, Illicrop taken from the Government report of con- nois, Indiana, and Missouri—is a trifle smaller dition as of July 1, 1916. From these figures than the 10-year average, and the forecast for it appears that there was a slight improvement the yield is also smaller than the final estimate in condition on July 1 as compared to June 1, for 1915. This report, however, is of July 1, but the forecast for the 1916 yield is only about and since that time it is believed that the crop one-half of the final estimate for 1915. has developed rapidly. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

412 FEDERAL RESERVE BULLETIN. AUGUST 1, 1916- CORN. in the past 10 days. This advance is attrib- 000's omitted. uted to the extreme heat and insufficient rain for truck farming. These conditions have also Per a t c o c e 1 r 1 n 9 e 9 t 1 a 1 o 6 g 5 f e . J C u 1 t o 9 i l o n y 16 n d . 1 i- , 1 a 0 a v - g y e e e r . - ar c F o J o n f u r r d o e l i m c t y i a o l s - n t . es F t 1 i 9 i m n 1 a 5 a l . te, p co o n u t l r t i r b y u a te n d d e to g g t s h . e recent increases in price of There is a free movement in carload lots of Arkansas 98 93 83 61,520 62,100 cantaloupes, watermelons, tomatoes, peaches,, Illinois 102 80 85 358,109 376,164 Indiana 104 80 85 186,046 190,950 etc., from the more southern parts of the dis- Kentucky 98 89 86 107,717 114,000 Mississippi 96 87 84 68,591 69,350 trict, but prices are reported as somewhat M Te i n ss n o e u ss ri ee 1 9 0 6 1 8 8 1 8 8 8 2 6 2 8 0 7 3 , , 2 2 2 9 6 8 2 9 0 4 9 , , 5 4 0 5 0 0 higher than the average. The potato crop is coming into the market freely. 1,072,507 1,116,514 The harvest of hay, clover, and other fodder Practially all reports from correspondents crops has been abundant, the yield per acre have been favorable. The only adverse com- being exceptionally heavy. ment being a need of rain, which has been noted From present indications surplus funds of the past few days. Reports indicate that the banks, especially in St. Louis, are not as large crop has been well cultivated. as they were 30 days ago, and discount rates Figures for cotton taken from the Govern- have advanced from one-half to 1 per cent in ment report as of June 25, 1916, confirm pre- the principal cities of the district. vious estimates of an increase in acreage and The commercial paper rates show a similar the percentage of condition is favorable in all increase, best names being quoted at 4 to 4£ per of the States, except Missouri, where it is 10 cent and other names 4J to 5 per cent. Compoints below the 10-year average. A report mercial paper brokers report an increased defrom a large cotton factor reads as follows: mand from country banks for paper at 4§ per "Conditions on the whole remain exception- cent, but the market in the larger cities is dull ally good. The weather has been hot and and inactive. The percentage of gain in clearpractically all our agents report that the crop is ings for the six months7 period January 1 to looking fine. The plant appears to be unusu- June 30, 1916, compared to the same period ally well fruited.77 1915, for the principal cities in this district are COTTON. as follows: St. Louis 22.8, Louisville 41, Memphis 12.2, Condition. Per cent Changes Little Rock 17.2, Evansville 46.2. of 1916 in condit a o c r 1 e 9 a 1 g 5 e . Ju 1 n 9 e 1 6 2 . 5, Ju 1 n 9 e 1 5 2 . 5, a 1 v 0 e - r y a e g a e r . t M io a n y fr 2 o 5 m . The percentage of gains in clearings for the week ending July 8, 1916, compared to the Arkansas 115 89 85 81 + 2 same week in 1915 for the same centers are as Mississippi 116 85 84 79 + 2 Missouri 130 74 86 84 -13 follows: Tennessee 115 84 87 82 2 St. Louis 34.6, Louisville 25.3, Memphis 45. 1, Little Bock 14, Evansville 26.1. Reports from the rice-producing counties of Arkansas indicate that the crop has advanced In considering the figures for the week ending in a satisfactory manner to date and an early July 8, it may be noted that they show gains in harvest is anticipated. Warm dry weather in St. Louis, Louisville, and Evansville, as com- Tennessee and Kentucky has aided the devel- pared to the same week of 1914 and 1915. opment of tobacco, and indications are that In June, 1916, this bank cleared 221,060 with favorable conditions the crop this year items for a total of $117,516,061.24. The numwill be exceptionally heavy. ber of items and total amount of clearings has In St. Louis truck-farm products, vegetables, increased from month to month, and the June home-grown fruits, etc., have advanced in price clearings are a new high record. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

AUGUST 1, 1916. FEDEEAL RESERVE BULLETIN. 413 DISTRICT NO. 0—MINNEAPOLIS. tered upon the critical stage, and the weather Very warm weather during the first part of for the next 10 or 15 days will largely deterthe month, with somewhat more moderate mine the quality of the crop and the yield. temperatures and wind enough to keep the Except for hot dry winds or other damage grain stirring during the latter portion of the while the grain is in the milk, the prospects are month, have greatly advanced the crops in for large yields. this district. There is a notable improvement There has been some slight change in bankin the prospects for a corn crop. Until the ing conditions, with an improvement in demand latter part of June corn was very backward and a mo derate hardening of rates. The reserves and was making slow progress. Hot July at the larger centers are low and deposits have weather and warm nights have advanced it to been falling off somewhat, and will continue to a point where the present condition is not far decrease until after the beginning of the crop behind that of an average year. Small grains movement this fall. The outlook is for a furare in the finest possible condition and are ther improvement in the demand and a further making rapid progress. The rye harvest has stiffening of rates. It is believed, however, begun, as has the cutting of barley. that the improvement in rates will be very gradual. Commercial conditions continue to be favorable, with the usual midsummer characteris- DISTRICT NO. 10—KANSAS CITY. tics. In industrial lines a good volume of output is still maintained. The labor situation is Weather conditions have been most ideal somewhat improved. for the harvest, and in distinct contrast to those prevailing last year, when excessive rains re- Weather conditions favorable to spread of sulted in a loss of a considerable part of the black rust, causing rapidly increasing damage crop, the portion saved being of inferior qualof wheat crop, especially in South Dakota during last week of month, with probably an ity. The first of this year's crop, which has equal amount of damage as the result of the come to market, is of fine grade and commandexcessive heat. Black rust also made its ing considerable premium over the price of old appearance in many localities in North Dakota, wheat. where damage from this cause and heat will be Wheat and oats are generally harvested severe. The southern and northwestern sec- throughout the district, and thrashing is protions of Minnesota also report damage from gressing, with a yield at least up to expectarust and heat, a great deal of grain in the wheat- tions. There is considerable divergence in the growing territory that was planted on the estimates on the Kansas wheat crop, but even stubble is showing the effect of poor prepara- if the lowest estimate, 90,000,000 bushels, is tion of the ground. Most of the damage re- realized, it is a volume reached in only three ports make comparisons with crop of last 3^ears previous to 1914. Corn has grown fast year. Last year's crop was unusually heavy and is nearly up to normal, generally clean and the present crop can suffer considerable and of excellent color, and, as a whole, the conreduction in yield and still present a fair dition is somewhat better than last year. The average return for this district. Present second and third excellent cuttings of alfalfa weather condition is regarded as critical and are in progress. much will depend on weather conditions dur- Colorado claims a harvest promising to break ing the first week of* August. all records. The sugar-beet crop is reported in The flax crop is in a very favorable condi- . excellent condition, and there has been considtion, and timely rains have improved the out- erable development and additional capital emlook in some sections where the fields have ployed in beet-sugar factories. Denver reports suffered for lack of moisture. The grain ou-t the erection of two such factories at a cost of look as a whole is excellent. Wheat has en- $1,000,000 each. Buyers are offering an in- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

414 FEDERAL RESERVE BULLETIN, AUGUST 1, 1916. crease of 10 per cent a ton to producers. As Cattle. Hogs. an indication of the growing importance of this industry, it might be noted that in Colorado 1915 1916 1915 1916 alone, in 1915, the sugar-beet farmers of that State received approximately $11,000,000 for Kansas Gity 692,887 793,011 1,392,126 1,549,843 Omaha 507; 511 595,503 1,633,919 1,846,211 their product from which 482,500,000 pounds St. Joseph 197,621 200,456 878,375 1,104,264 Denver 155,572 263,073 182,942 276,242 of sugar were manufactured and that the fac- 1,553,591 1,852,043 4,087,362 4,776,560 tories employed 5,000 men. Increase 298,452 689,198 The Oklahoma cotton yield forecast is nearly The increases in the feeder cattle and sheep double last year's, the estimate this season bemovement from these markets for the first six ing 1,010,000 bales as against 639,626 last year. months of 1916 over same period of 1915 were: Rainfall has been ample except for the upland corn in Oklahoma, and the ranges in parts of Wy- Cattle. Sheep. oming and Colorado, where considerable moisture is needed. Heat records for two years are Kansas City- 28,408 62,166 Omaha 38,048 16,098 reported broken at various points. New St.- Joseph.. 3,831 9,210 Denver 86,704 18,255 Mexico reports the dryest June since 1902. Labor conditions have greatly improved in i Decrease. the last month. Several strikes, which might June brought the drilling of more than 1,500 have resulted seriously, have been settled. wells in the Mid-Continent oil field, with an Local employment agencies report more appliaverage daily production of about 70 barrels, cations for help than they can possibly fill, forming an aggregate new production of more with an unusual demand for common laborers. than 105,000 barrels a day. It is the prevailing The shortage of harvest hands, which was opinion, however, that the maximum drilling prophesied to be serious, was handled better energy has been reached, and that the June than expected, and no more help is needed in record will not be exceeded in the months to the harvest fields. follow. The situation in the oil business is High prices generally have been the out- affected by the unsettled condition in Mexico, standing features of the markets in the district, where the normal production was 22,000,000 hogs selling early in July up to $10.10, 55 cents barrels a year. higher than in any former July, while prime The production of oil in the Mid-Continent native steers sold up to $11.25 in June, the highfield has reached 400,000 barrels daily. The estpricein any former June being $9.50. Latest increase in the oil production of this field is also prices obtainable, compared with last year, show shown by the fact that while the market price hogs at about $2 per hundredweight higher has not changed materially, the premium over and good fat cattle at about the same price, the basic price, which was as high as 80 cents a with grass, medium, and commoner fat cattle barrel, is now down to 20 cents, the lowest it some lower. Stockers and feeders are about has been for some months. The premium in the same as last year, with sheep from $1.50 other fields has been off for some time. to $2.50 higher. The outstanding feature of the petroleum The half-year receipts of live stock at the industry during the half year just closed was markets in this district saw a substantial gain the high level reached in the prices of crude oil over last year, as did the feeder cattle and sheep in March, and maintained firmly to the end of movement, indicating an interesting growth in the period, involving prices ranging from 90 to the industry as shown by the following state- 350 per cent higher than those of a year ago for ments. high grades. The receipts of cattle and hogs at the markets According to the report of condition of 826 named during first six months of 1915 and 1916 State banks in Nebraska, there are 70,000 more were: Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

AUGUST l, 1916. FEDERAL KESERVE BULLETIN. 415 depositors than at this time last year, and the very active advance business in fall lines, probdeposits have increased $38,000,000 during the ably the largest in many years, reflecting the year, while the increase in deposits since the strong position of the retail merchants through- February report is $10,700,000. out the district. Collections have been much Reports on metal tell of record productions of improved over the first six months of last year. both the base and precious metals, of smelters DISTRICT NO. 11—DALLAS. working under stress, of mines idle for many An extensive canvass of conditions, reachyears being reopened and successfully operated^ ing every county in the State and practically of the installation of millions of dollars' worth of new mining equipment, with immense sums every county in the district has brought somepaid for the metal output of the various States what conflicting but very interesting reports. in this district. The only untoward incident The grain crop has been practically all is the announcement from Webb City, Mo., saved without damage. It is larger than estithat operators upon low-grade properties will mated a month ago. The oat crop, while not close their mines because of the low price of large, is not greatly below a fair average for zinc ore and the high price of production the State. Since the July report heavy and through increased cost of labor and material. adequate rains have fallen all over southwest This district holds large stocks of unsold ore. Texas. Their effect will be to enable the stockmen of that section to raise some feed Advices regarding general trade conditions crops, and the general rains will undoubtedly are reassuring, indicating that the volume of help range conditions. business continues in large proportions and the outlook bright. All the leading cities continue The last 30 days have been trying on the to report noteworthy gains in postal receipts corn crop, and the yield will not be as heavy and building permits issued. Bank clearings as was promised earlier in the season. The continue to show gratifying improvement, the early corn is fairly good, but a considerable total in the Western States for June amounting part of the later planting is very poor, and to $859,146,734, an increase of 38.7 per cent some of it a complete failure. over 1914 and 20.5 per cent over 1915. Na- From inquiry, more exhaustive than any tional-bank deposits in important centers show heretofore made, it is believed that the increase a decrease in totals on June 30, as compared of acreage of cotton will not be above that with the last preceding statement of May 1. stated in the July report and that an increase This is not abnormal at this time of the year on of from 10 to 12 per cent in this district is a account of harvest demands and remittances liberal estimate. Boll weevils have appeared of interest and other payments to the East, but over practically the entire district, but, as a has resulted in a hardening of interest rates. rule, have not so far done any considerable damage except in a very few sections. There All important railway lines in the district has never been a year when cotton fields have show an improvement in earnings. Jobbers been better cultivated, and, while the crop is and wholesalers express themselves as well late, the outlook continues good for a fair and satisfied with business during the first six months of the year. In dry goods there has | possibly a heavy yield. The campaign for been a marked increase in sales in lines used by warehousing and gradual marketing .of cotton the laboring man, indicating that he has been continues, with satisfactory results. well employed, and a corresponding increase in The condition of the rice crop shows no the better dress fabrics, which is further evi- change of any consequence, and the outlook dence of increased purchasing power. It is not for satisfactory results for this product is still believed that merchandise has been bought in encouraging. Heavy crops of feed, hay, sorexcess of consumption, but that rather the re- ghum, cane, Kafir corn, Milo maize, and Sudan tailer has been conservative and has confined grass have been grown, and the production will his buying to requirements. There has been a be heavy pretty well throughout the district. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

416 FEDERAL RESERVE BULLETIN. AUGUST 1, 1916. The crop of fruits and vegetables in the east- generally has been fair only, the increase over ern and southeastern parts of the State has the last year being nominal. been fairly heavy and prices better than usual. Collections, however, seem to be more satis- It is gathered from many sources that trade factory than usual. There has been a conis feeling the usual summer depression. The siderable increase, both in transportation of demands on the Dallas bank, considering freight and passengers. everything, have been lighter than might rea- Cotton is just beginning to move in the exsonably have been anticipated, and discounts treme southern end of the district. In the are more than $600,000 below a corresponding Panhandle district the crop is making fair date last year. progress, fields are clean, and as a rule there The cattle and sheep industries of the west- has been sufficient rain. In the western part ern part of the district have been quite active, of the State the cultivation of the crop has though there is some complaint that the ranges been good and it is fruiting well, with boll in the extreme west are getting short. There weevils reported present at a few points. In is some danger that the situation may become north Texas the cultivation of the plant has serious. Steers have not moved as freely as been good, few boll weevils, and the plant in usual, and there has been a wide difference as general is in excellent condition. The same to prices between the buyer and seller of this condition is true as to central Texas, except grade of cattle. Sales of sheep in New Mexico that there is complaint of drouth in some seccontinue at good prices. The wool clip will be tions, and a pretty general report of boll up to the average, though prices are not as weevils, though it is generally agreed that in high as were expected. view of the dry weather that they have so far Post-office receipts in the nine largest cities done little harm. In eastern Texas the conof the district show an increase of 15 per cent dition generally is favorable, the cultivation over the same month of last year. Records of the crops excellent, and the fruiting of of clearings for the same cities show an increase cotton progressing satisfactorily. Excluding of 7 per cent. southwest Texas, the crop is southern Texas Building permits in the principal cities of the as a rule needs rain, and there is considerable district show an average increase of 23 per complaint of boll weevils, and, considering the cent, operations in some of the cities being on a latitude, the crop is substantially later than very large scale. usual. Failures over the district for the period from Labor continues to be well employed, and June 15, 1916, to July 15, 1916, as against the in this section, as a rule, is contented. With same period of last year, are as follows: 1915, continued marked economy in the production 68 failures, $778,492 liabilities; 1916, 27 fail- of the present crop, and a fair and reasonable ures, $115,560 liabilities. return for it, there should be an unusually There has been little change in the price prosperous year. prevailing for copper and activity of this inter- DISTRICT NO. 12—SAN FRANCISCO. est in Arizona has affected business very favorably throughout that section. There has Moderate general expansion of business conbeen a substantial increase in the output of the tinues. Bank clearings in 17 cities show an oil in the district and prices continue good. increase in June, 1916, compared with June, There has been a slight decrease in the output 1915, of approximately 30 per cent, Seattle of the lumber mills of the State, and orders showing 105 per cent gain. Both the deposits have not been on so large a scale, though there of member banks and their loans show inis no substantial change in the price. Business creases over the corresponding date last year. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

AUGUST 1, 1916. FEDERAL RESERVE BULLETIN. 417 Between the Comptroller's two calls, May 1 and Growers of live stock continue to benefit June 30 this year, the rate of increase in loans largely by exceptionally high prices. The has been greater than during the preceding 10 wool clip has been largely marketed at prices months and greater than the rate of increase in approximating 30 cents per pound. deposits. A faster pace of loan increase sug- In the Northwest wheat acreage is materially gests the probability of firmer interest rates less than for the last two years. Recent, and is, of course, one of the first signals for reports indicate weather conditions more favcaution. orable than in the early spring. Present esti- Building permits in 17 cities during June in- mates are that the crop will be 55,000,000 to creased about 12 per cent over the total of the 60,000,000 bushels, with about 15,000,000 corresponding month last year. bushels carried over. Lack of bottoms has forced shipments by rail, a factor of greater The lumber situation in Washington, Oregon, transportation cost which affects prices unand California is less promising than a month favorably. ago. There has been a slackening of activity with softening prices. Many mills which a The barley crop is reported about normal. short time ago were operating at full capacity A heavy export demand has resulted in exare now running on short time and some are ceptionally high prices. The hay crop is short shutting down. The apparent overproduction and high prices rule. Beans and sugar beets, is attributed in part to difficulties in transpor- both important crops, are commanding unusual tation due both to lack of bottoms and to the prices. longshoremen's strike, affecting the entire Although the production of certain deciduous Pacific coast. There is expectation of renewed fruits will be less than normal, growers will activity during the fall months. average unusual returns because of the pre- Metal mining continues without abatement vailing high prices. For instance, a single its exceedingly profitable activity. Petroleum carload of California cherries sold in New York production in California during June averaged for $5,081. Canners are paying for peaches 255,451 barrels per day, a daily increase over more than double the prices paid last year. May of 6,000 barrels, but shipments were Shipbuilding on this coast is active beyond 304,546 barrels, a new high record. During the all parallel, but there continues a great shortage first half of this year storage stocks decreased of ships. 5,947,133 barrels, a daily average of 32,677 Railroad tonnage has been heavy, increased barrels. Crude petroleum in storage June 30, by the lack of ships, and earnings, both gross 1916, amounted to 51,199,918 barrels. Prices and net, are larger. to producers have been advanced during the The financial, commercial, and industrial past month about 5 cents per barrel. outlook in this district is favorable. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

418 FEDERAL RESERVE BULLETIN. AUGUST 1,1916. DISTRIBUTION OF DISCOUNTS BY SIZES September, 1915, the date of the first discount AND MATURITIES. of this class of paper, was $3,762,000. The total number of bills discounted during Commercial paper to the amount of $11,660,the month was 9,238, compared with 8,300 in 000 was discounted by the Federal Reserve May and 10,734 in June, 1915. The average Banks during June, a total of about 4 per cent amount of the paper discounted was about in excess of the total for May, though about 13 $1,260, compared with $1,350 for May, about per cent below the corresponding total for $1,540 for the first five months of the present June, 1915. Of the total discounts for the year, and about $1,250 for June, 1915. The month, 53.8 per cent, as against 58.2 per cent averages for the month vary between $860 in May and 66 per cent in June, 1915, is for St. Louis and Kansas City and $3,650 for credited to the three southern banks. Chicago Boston, where, however, the total discounts reported a total of $1,564,300 discounted for for the month were only $466,800. For the the month, the greater portion being agricul- three southern banks the average for the tural paper. The total discounts for the first month was about $l 140. Over one-quarter ? six months in 1916 were $62,543,600, com- of the number and more than one-half the pared with $72,743,800 for the corresponding amount of the paper discounted was in amounts period in 1915. of over $1,000 to $5,000. Small notes (in sizes Commodity paper included in the above up to $250) constituted nearly 29 per cent of total and discounted during the month by five the total number, though but 3.3 per cent of Federal Reserve Banks aggregated $712,000, the total amount of bills discounted during the as against $899,400 for May, and consti- month. Bills in sizes of over $10,000,76 in numtuted a little over 6 per cent of the total ber, amounted to 11.7 per cent of the total disdiscounts for the month, compared with about counts for the month, Boston reporting 44.7 per 8 per cent for May and about 15 per cent for cent of its total discounts in bills of this class. the first five months of the present year. Prac- Of the total paper discounted during the tically the entire amount was cotton paper and month, 10.4 per cent was paper maturing within was handled by the Richmond and Atlanta 10 days at the time of discount, 17.6 per cent banks, of whose total discounts for the month paper maturing after 10 but within 30 days; commodity paper constituted about 18 per 20.4 per cent paper maturing after 30 but within cent. The total of commodity paper dis- 60 days, and 26.5 per cent paper maturing after counted during the six months of the present 60 but within 90 days. Agricultural and livecalendar year was $8,359,400, while a total of stock paper maturing after 90 days (6-month pa- $18,674,500 of this class of paper was disper) discounted amounted to about $2,900,000, counted by the Federal Reserve Banks since constituting over 25 per cent of all bills dis- September of last year. counted during the month. The Dallas bank Seven Federal Reserve Banks discounted reports nearly 40 per cent of the total amount of during the month trade acceptances (two- this class of paper, which was over one-half of name paper) to the amount of $275,700, com- the bank's total discounts. Minneapolis reports pared with $298,300 in May and an average of $353,600 of this class of paper, or about 74 per about $305,500 for the first five months of cent of its June discounts; Chicago, $432,300, or the present year. This total does not include 28 per cent; and Kansas City, $316,200, or over about $2,559,000 of trade acceptances based 38 per cent of the bank's total discounts for the upon foreign-trade transactions and $30,000 month. of domestic trade acceptances purchased in the While the total amount of paper discounted open market. San Francisco reports over during the first six months of the present year 70 per cent of the trade acceptances in the is about 10.2 millions less than for the correforeign trade, and Atlanta the entire amount of sponding period in 1915, the combined amounts domestic acceptances bought. For the first of 10- and 30- day paper discounted during the half of 1916 the discounts of two-name paper present year were 1.7 millions, and those of amounted to $1,803,200, while the total since 6-month agricultural and live-stock paper 1.6 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

AUGUST 1, 1916. FEDERAL RESERVE BULLETIN. 419 millions larger than in 1915. On the other commodated, due to the increasing number of hand, the amounts of 60-day paper discounted banks in rural communities that are redisduring the present year fell off about 9 millions, counting agricultural and live-stock paper. and those of 90-day paper about 4.5 millions. Dallas, with 147 discounting banks out of a Discounted paper held on the last Friday in total of 618 member banks in the district, and June amounted to about 21 millions, of which Richmond, with 109 out of a total of 516, report 13.8 millions, or nearly two-thirds, was held by the largest absolute and relative numbers of the three southern banks. The total amount banks accommodated during the month. of paper held on the corresponding date in 1915 Member banks in Texas to the number of 128 was about 5 millions larger. secured $1,965,700 of rediscounts; 44 banks in Of the total member banks—7,621 at the South Carolina, about $1,103,000; 32 banks in end of the month—678, or about 8.9 per cent, North Carolina, $949,500; 10 banks in Pennrediscounted with the Federal Keserve Banks, sylvania, $855,100; 13 banks in Illinois, as against 655 the month before and 813 in $652,700; 45 banks in Iowa, $616,200; and 37 June, 1915. The number accommodated by banks in Georgia, $546,600. The combined the three southern banks was 338 as against share of rediscounts secured by the 309 banks in 335 in May, 1916, and 431 in June, 1915. Chi- the 7 States named was about 58 per cent of cago and Kansas City each show substantial the total discounts reported to the Board increases in the number of member banks ac- during June. Commercial paper, exclusive of bankers' acceptances, rediscounted by each of the Federal Reserve Banks, during the month of June, 1916, distributed by sizes. NUMBER OF PIECES AND AMOUNTS. [In thousands of dollars.] To $100. O to v e $ r 2 $ 5 1 0 0 . 0 O to v e $ r 5 $ 0 2 0 5 . 0 O to v $ e 1 r ,0 $5 0 0 0 0 . O t v o e $ r 2 $ ,5 1 0 ,0 0 0 . 0 O to v e $ r 5 $ , 2 0 , 0 5 0 0 . 0 O to v e $ r 1 $ 0 5 ,0 ,0 0 0 0 0 . $1 O 0 v ,0 e 0 r 0. Total. Per cent. Boston 16 3.0 12.4 17.0 12 21.6 33 156.2 47.6 208.5 128; 466.8 1.4 4.013!,,650 New York 74 12.4 24.2 39.9 53 86.7 31 130.2 32.6 20.0 323| 348.4 3.5 3.0 1,070 Philadelphia 32 5.3 12.8 34.1 64 119.5 94 403.7 277.4 92.5 304; 945.7 3.3 8.1 3,110 Cleveland 34 5.9 13.9 17.7 34 52.5 6 19.9 33.3 13.5 145; 157.0 1.6 1.3 1,080 Richmond 15611. 318 58.5 415 183.5 326.0 352 627.8 205 816.4 527.1 281.2 2.0011 2,832.3 21.7 24.3 1,410 Atlanta (including New Orleans branch) 127.8 171 284.6 299.9 185.5 121.91 136 1,165.5 12.3 10.0 1,020 Chicago 2.•.45 15.8 176 73.1 277! 221.7 253 417.3 499.5 144.4 190.0 972; 1,564.3 10.5 13.4 1,610 St. Louis 16.2 101 37.2 85 61.3 70 109.9 57.1 26.1 15.0 377i 323.2 4.1 2. 860 Minneapolis .2! 41 7.8 87 31.9 120; 82.9 113 175.0 112.2 70.3 409J 480.3 4.4 4.1 1,170 Kansas City 4.31 36.4 280106.1 222 157.2 140 216.0 168.8 88.41 47.5 962 824.7 10.41 7.1 860 Dallas...... 20714.4 7441123.3 528192.6 362 256.2 479.8 592.7 298.2 331188.5.5 2,353 2,275.7 25.4! 19.5 970 San Francisco 2 .2 9 1.8 17 6.8 28 17.1 58.9 80.2 60.5 50.6 1281 276.1 1.4! 2.4 2,160 Total 678',50.2 1,955 338.2 1,981 775. 7 1,859J1,358.9 1,593 2,649.6 848 3,336.8 2481,791.4 76 1,359.2 9,238 11,660.0100.0100.0 1,260 PERCENTAGES OF AMOUNTS OF EACH CLASS TO TOTAL. Banks. To $100. I O to v e $ r 2 $ 5 1 0 0 . 0 O to v e $ r 5 $ 0 2 0 5 . 0 O to v $ e 1 r ,0 $5 0 0 0 0 . O to v e $ r 2 $ ,5 1 0 ,0 0 0 . 0 O to v e $ r 5 $ ,0 2 0 ,5 0 0 . 0 O to v e $ r 1 0 $ , 5 0 , 0 0 0 0 . 0 $1 O 0 v ,0 e 0 r 0. Total. Boston 0.1 0.6 2.7 3.6 4.6 33.5 10.2 44.7 100.0 New York .. .7 3.6 6.9 11.4 24; 9 37.4 9.4 5.7 100.0 Philadelphia .6 1.4 3.6 12.6 42.7 29.3 9.8 100 0 Cleveland .2 3.8 8.8 11.3 33.4 12.7 21.2 8.-6 100.0 Richmond .4 2.1 6.5 11.5 22.2 28.8 18.6 9.9 100 0 Atlanta (including New Orleans branch') . .... 1.1 4.4 7.0 11.0 24.4 25.7 15.9 10.5 100 0 Chicago - - - .2 1.0 4.7 14.2 26.7 31.9 9.2 12.1 100.0 St Louis * - .1 5.0 11.5 19.0 34.0 17.7 8.1 4.6 100.6 Minneapolis 1.6 6.7 17.3 36.4 23.4 14.6 100.0 Kansas City .5 4.4 12.9 19.1 26.2 20.5 10.7 5.7 100 0 Dallas .6 5.4 8.5 11.3 21.1 26.0 13.1 14.0 100.0 San' Francisco .1 .7 2.5 6.2 21.3 29.0 21.9 18.3 100.0 Total .4 2.9 6.6 1L7 22.7 28.6 15.4 11.7 100.0 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

420 FEDERAL RESERVE BULLETIN. AUGUST 1, 1916. Commercial paper, exclusive of open-market purchases, discounted during June by each of the Federal Reserve Banks y distributed by States, and maturities as of date of discount. [In thousands of dollars.] Paper maturing— Number of Total Districts and States. N m u b m e a m n b k b e s r e . r of ac d b co a a m t n e k m d s . o- 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 t y t h s e i r n b 6 u 9 0 t 0 A d ft a e y r s. 90 d co is m p c a o m p u e e n r r t c e i d a . l days. days. days. District No. 1—Boston: Connecticut 56 Maine 68 1 2.7 2.7 Massachusetts . . .. . 164 3 38.2 355.7 393.9 New Hampshire 56 2 3.5 8.8- 4.5 16.8 Rhode Island 17 Vermont .. . 48 3 20.0 14.1 14.4 4.9 53.4 Total 409 9 58.2 373.3 23.2 12.1 466.8 District No. 2—New York: Connecticut 15 New Jersey 133 3 6.3 16.3 6.9 1.4 30.9 New York 484 19 27.6 113.3 99.6 74.9 2.1 317.5 Total 632 22 27.6 119.6 115.9 81.8 3.5 348.4 District No. 3—Philadelphia: Delaware 24 New Jersey 71 3 9.6 32.9 27.6 19.4 1.1 90.6 Pennsylvania 533 10 776.1 17.3 20.1 36.1 5.5 855.1 Total 628 13 785.7 50.2 47.7 55.5 6.6 945.7 District No. 4—Cleveland: Kentucky 72 4 11.4 6.0 3.0 20.4 Ohio 374 9 42 4 31 9 25 3 30 9 130 5 Pennsylvania .. . . . . 300 2 4.0 2.1 6.1 West Virginia 13 Total 759 15 42.4 47.3 33.4 33.9 157.0 District No. 5—Richmond: District of Columbia . . 15 1 38 5 16 2 128 4 183.1 Maryland 97 5 3.0 31.3 52.0 g 86.9 North Carolina 79 32 6.8 336.8 176.2 403.3 26.4 949.5 South Carolina 78 44 2.0 200.8 395 5 366 9 137 8 1,103.0 Virginia . . 143 24 205.1 114.2 146.7 21.8 487.8 West Virginia 104 3 14.4 7.6 2.2.0 Total 516 109 8.8 784.2 747.8 1,104.9 186.6 2,832.3 District No. 6—Atlanta: Alabama 93 19 45 0 60 7 173 8 60 2 339 7 Florida 56 13 ' 1.8 27.7 42.5 2.5 74.5 Georgia .. .. 110 37 .4 78.6 148.2 186.9 132.5 546.6 Louisiana 21 4 10 5 18 0 34 3 35 0 97 8 Mississippi 18 Tennessee 93 9 20.9 25.7 57.9 2.4 106.9 Total : 391 82 .4 156.8 280.3 495.4 232.6 1,165.5 District No. 7—Chicago: Illinois 318 13 255.0 257.8 65.0 53.5 21.4 652.7 Indiana 196 17 12.4 80.4 52.3 45.9 191.0 Iowa 350 45 2.5 28.1 157.3 113.7 314.6 616.2 Michigan *.. . 77 4 9.7 17.7 8.2 11.6 8.4 55.6 Wisconsin 51 1 6.8 42.0 48.8 Total 992 80 267.2 316.0 310.9 237.9 432.3 1,564.3 District No. 8—St. Louis: 64 7 1 8 7 5 18 9 48 7 76 9 Illinois 157 10 5.2 10.8 17.4 12.2 45.6 Indiana 61 2 4 0 1 0 5 0 Kentucky 68 1 1 0 1 0 Mississippi 18 2 6.1 9.2 7.4 7.9 30.6 Missouri 81 13 13.5 25.6 38.7 22.3 100.1 Tennessee 20 5 37.4 20.9 5.7 64.0 Total 469 40 64.0 79.0 89.1 •91.1 323.2 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

AUGUST 1, 1916. FEDERAL RESERVE BULLETIN. 421 Commercial paper, exclusive of open-market purchases, discounted during June by each of the Federal Reserve Banks, distributed by States, and maturities as of date of discount—Continued. [In thousands of dollars.] Paper maturing— Number of Number of Total Districts and States. m b e an m jo b s e . r ac d b c a o a t m n e k d m s . o- 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 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 co is m p c a o m p u e e n r r t c e i d al . days. days. days. District No. 9—Minneapolis: Michigan 31 Minnesota . . .... 282 30s 2.3 27.4 19.6 123.5 172.8 Montana 69 6 4.6 35.5 40.1 North Dakota 154 10 1.0 ]21 1 122 1 South Dakota 124 17 3.0 .5 2.0 109.0 114.5 Wisconsin 88 1 1.9 14.6 10.2 4.1 30.8 Total 748 64 1.9 19.9 42.7 62.2 353.6 480.3 District No. 10—Kansas City: Colorado 121 4 1.0 5.5 18.2 45.4 70.1 Kansas 220 22 33.4 58.7 62.2 79.2 68.9 302.4 Missouri 53 4 5.6 8.5 14.8 28 9 Nebraska 198 9 .5 18.5 21.4 21.7 62.1 New Mexico 9 1 10.4 22.0 32.4 Oklahoma 303 33 13.1 24.6 93.7 54.0 143.4 328.8 Wyoming 34 Total 938 73 46.5 84.8 185. 5 191.7 316.2 824.7 District No. 11—Dallas: Arizona 6 Louisiana . 10 2 .2 5.2 6.6 3.1 15 1 New Mexico 28 9 45.5 46.6 129.1 221.2 Oklahoma ........ 33 8 1.6 5.2 5.4 61.5 73.7 Texas 541 128 10.0 37.4 379.4 570.5 968.4 1,965.7 Total 618 147 10.0 39.2 435.3 629.1 1,162.1 2,275. 7 District No. 12—San Francisco: Alaska 1 Arizona 7 California . 262 12 5.0 1.3 15.6 39.0 51.8 112.7 Idaho 58 3 1.0 11.8 1.5 14.4 28.7 Nevada. . 10 Oregon 82 5 5 12 3 25 7 15 4 53 9 Utah. 23 1 1.0 1 0 Washington 78 3 5.0 1.1. 22.3 25.1 26.3 79.8 Total 521 24 10.0 4.9 62.0 91.3 107.9 276.1 RECAPITULATION. [In thousands of dollars.] Paper maturing— Number Number Total Districts and cities. m b e a m n o k f b s e . r m o a f o c d c b o a a m t 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 3 u 0 0 t w d A a i f t y t h s e i , r n b 3 6 u 0 0 t w d A a i f t y t h s e i , r n b 6 9 u 0 0 t A d ft a e y r s 9 . 0 c d o is m p c a m o p u e e n r r c te ia d l . Per cent. days. days. days. No. 1—Boston 409 9 58.2 373.3 23.2 12.1 466.8 4.0 No 2—New York 632 22 27.6 119.6 115.9 81.8 3.5 348.4 3.0 No. 3—Philadelphia 628 13 785.7 50.2 47.7 55.5 6.6 945.7 8.1 No 4—Cleveland 759 15 42.4 47.3 33.4 33.9 157.0 1.3 No. 5—Richmond 516 109 8.8 784.2 747.8 1,104.9 186.6 2,832.3 24.3 No. 6—Atlanta (including New Orleans branch) . . . . 391 82 .4 156.8 280. 3 495.4 232.6 1,165.5 10.0 No. 7—Chicago 992 80 267.2 316.0 310.9 237.9 432.3 1,564.3 13.4 No 8—St. Louis 469 40 64.0 79.0 89.1 91.1 323.2 2.8 No 9—Minneapolis . . .. 748 64 1.9 19.9 42.7 62.2 353.6 480.3 4.1 No. 10—Kansas City 938 73 46.5 84.8 185.5 191.7 316.2 824.7 7.1 No 11—Dallas 618 147 10.0 39.2 435.3 629.1 1,162.1 2,275. 7 19.5 No. 12—San Francisco. 521 24 10.0 4.9 62.0 91.3 107.9 276.1 2.4 Total for June .. 7,621 678 1,216.3 2,055.3 2,377.6 3,084.4 2,926.4 11,660.0 Per cent 10.4 17.6 20.4 26.5 25.1 100.0, 100.0 Total for Jan.-June, 1916... 4,516.4 10,764.3 16,468.1 19,985.7 10,809.1 62,543.6 Total for Jan.-June, 1915 13,546.2 25,513.1 24,478.6 9,205.9 72,743.8 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

422 FEDERAL RESERVE BULLETIN. AUGUST 1, 1916. Trade acceptances discounted by each Federal Reserve Bank from Sept.-2, 1915, date of first discount to June 30, 1916. Federal Reserve Bank. T D o e t c a . l 3 t 1 o , June, 1916. 6 f o T m r o o f t i n a r t l s h t s Federal Reserve Bank. T Pe o c ta . l 3 t 1 o . June, 1916. 6 f o T m r o o f t n i a r l t s h t s 1915. in 1916. 1915. in 1916. New York $5,700 $5,600 St. Louis $167,800 $38,500 SI79,000 Philadelphia $7,300 44,900 Minneapolis 600 Cleveland 4,900 49,500 118,000 Kansas City 87,800 40,400 120,400 Richmond , 450,500 89,600 732,100 Dallas 160,800 3,500 55,300 Atlanta (including New Orleans San Francisco 74,200 5,300 branch) , 1,007,100 46,900 533,800 Chicago 8,200 Total.. 1,958,800 275,700 1,803,200 Commodity paper discounted by each Federal Reserve Bankfro*m Sept. 8, 1915, date of first discount, to June 30, 1916. Federal Reserve Bank. T D o 1 e 9 c ta 1 . l 5 3 . t 1 o , June, 1916. 6 i f n o T m r o 1 o 9 f 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 . June, 1916. 6 i f n o m T r o 1 o f 9 t n i a 1 r t l 6 s h t . s Richmond $2,881,400 $499,100 $4,781,900 Dallas $239,100 $2,500 $222, 700 Atlanta (including New Orleans San Francisco 37,200 2,300 58,200 branch) „ 7,032,300 207,100 3,276,800 St. Louis 99,800 Total... 10,315,100 712,000 8,359,400 Minneapolis 25,300 1,000 19, 800 Commodity paper discounted by each of the Federal Reserve Banks during the six months ending June} 1916, distributed by classes. Atlanta Class. Richmond. (i O nc N r l l u e e a d w n in s g Mi o n l n i e s. ap- Dallas. Sa c n i sc F o ra . n- Total. branch). Cotton $4,739,500 $3,273,000 $215,700 $300 $8,228,500 Peanuts - 39,800 900 40,700 Wheat $16,800 16,800 Maize 1,000 7,000 8,000 Flax 3,000 3,000 Hops 26,300 26,300 Hav ...... . . . 400 400 Beans 500 500 Raisins .. 7,600 7,600 Miscellaneous - . . ........ 2,600 1,000 24,000 27,600 Total 4,781,900 3,276,800 19,800 .222,700 58,200 8,359,400 Amounts of commercial paper, exclusive of bankers' acceptances, held by each Federal Reserve Bank on June 30, 1916, ^ distributed by maturities. Paper maturing— Federal Reserve Bank. Within d A ay ft s e , r b 1 u 0 t •d A a f y t s e , r b 3 u 0 t d A ay ft s e , r b 6 u 0 t After 90 Total. Per cent. 10 days. within within within days. 30 days. 90 days. Boston $110,000 $33,900 $30,800 $8,200 $182,900 0.9 New York 94,000 179,400 136,200 36,100 $2,100 447,800 2.1 Philadelphia 292,800 111,800 73,200 36,000 15,800 529,600 2.5 Cleveland 43,400 42,300 84,700 51,500 47,600 269,500 1.3 Richmond 1,005,500 ,441,700 1,590,900 876,300 454,500 5,368,900 25.3 Atlanta (including New Orleans branch) 480,600 676,200 685,400 479,500 461,200 2,782,900 13.1 Chicago 213,600 254,400 575,300 411,000 597,500 2,051,800 9.7 St. Louis 84,700 99,900 162,600 115,900 120,900 584,000 2.8 Minneapolis 59,100 74,600 58,000 92,800 662,200 946,700 4.5 Kansas City 194,700 315,400 503,900 422,200 475,000 1,911,200 9.0 Dallas 690,800 774,600 1,128,000 851,200 2,218,500 5,663,100 26.7 San Francisco 40,400 77,300 114.400 85,000 130,700 447,800 2.1 Total 3,309,600 4,081,500 5,143,400 3,465,700 5,186,000 21,186,200 Per cent 15.6 19.3 24.3 16.3 24.5 100.0 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

AUGUST 1, 1916. FEDEBAL EESEKVE BULLETIN. 423 ACCEPTANCES.. Acceptances bought in open market and held by Federal Reserve Banks as per schedules on file on dates specified, distributed [In thousands of dollars.] Bankers' acceptances. Bankers' acceptances. Trade Trade Date. b M a b n e e m k r s - . c T o n N m r ie u o p s s n . a t m - e b m S a t n b a k e te r s . ba P b n r a k i n v s k . a s te . Total. m b i a n a c o a n c o u r c e k p g e p e e h s t n t t - . a a T c n c o c e t e p a s l t . - Date. b M a b n e e m k r s - . c T o n N m r ie u o p s s n . a t m - e b m S a t n b a k e te r s . ba P b n r a k i n v s k . a s t . e Total. m i a b n a c o a n c o u r c e k p g e p e e s h t n t - t . a a c T n c o c e e t p a s t l . - 1915. 1916. Feb. 22 • 93 93 93 Mar. 6 17,182 8,670 408 1,781 28,041 462 28,503 Apr. 5 3,653 7,820 10 110 11,593 11,593 Mar. 13 20,323 10,032 470 1,631 32,456 546 33,002 May3 5,038 8,189 10 110 13,347 13,347 Mar. 20 20,563 11,280 408 2,467 34,718 678 35,396 June 7 5,242 4,516 10 192 ' 9,960 9,960 Mar. 27 21,128 12,864 411 3,078 37,481 629 38,110 July3 4,342 5,267 161 9,770 9,770 Apr. 3 21,000 13,573 473 3,202 38,308 722 39,030 Aug. 2 5,350 5,407 20 352 11,129 11,129 Apr. 10 22,239 14,864 476 3,405 40,984 874 41,858 Sept. 6 .. 6,087 6,305 20 472 12,884 12,884 Apr. 17 22,135 15,028 564 3,442 41,169 1,321 42,490§ Oct. 4 .9,000 4,898 132 343 14,373 14,373 Apr. 24 23,566 15,196 584 3,504 42,850 1,438 44,288 Nov. 1 8,477 4,331 253 204 13,265 13,265 May 1 24,875 15,400 585 3,430 44,290 1,477 45,767 Dec. 6 12,311 5,172 275 396 18,154 18,154 May 8 25,058 15,750 671 3,493 44,972 1,518 46,490 May 15 26,633 15,372 773 4,960 47,738 1,635 49,373 1916. May 22 26,639 16,490 690 0,038 49,857 2,006 51,863 Jan.3 15,494 7,160 362 822 23,838 23,838 May 29 26,104 16,541 690 5,895 49,230 2,037 51,267 Jan. 10...... 16,492 8,057 370 938 25,857 25,857 June 5 24,680 17,029 644 7,007 49,360 2,208 51,568 Jan. 17 16,908 7/655 425 1,010 25,998 180 26,178 June 12 27,354 19,209 622 7,865 55,050 2,310 57,360 Jan. 24 16,348 8,070 363 1,441 26,222 180 26,402 June 19 32,011 19,490 560 9,067 61,128 2,054 63,182' Jan. 31...... 15,834 8,174 356 1,510 25,874 180 27,054 June 26 33,155 18,722 552 11,009 63,438 1,958 65,396 Feb. 7 15,681 7,876 336 1,456 25,349 489 25,838 July 3 32,989 18,921 471 11,830 64,211 3,422 67,633 Feb. 14 17,581 7,985 347 1,851 27,764 528 28,292 July 10..... 34,144 20,201 620 11,827 66,792 3,052 69,844 Feb. 21 17,661 8,194 392 1,841 28,088 460 28,548 July 17 40,497 22,309 593 13,193 76,592 3,685 80,277 Feb. 28 17,436 8,755 408 1,841 28,440 460 28,900 July 24 41,514 22,327 610 12,977 177,428 3,651 81,079' i Of the total of $77,428,000, there were $1,133,000 of trust company acceptances, $215,000 of State bank acceptances, and $2,995,000 of private bank acceptances which bore the indorsement of member banks. Amounts of acceptances held by the several Federal Reserve Banks at close of business on Fridays, June 30 to July 21, 1916, [In thousands of dollars.] New Phila- Cleve- Rich- At- Chi- St. Minne- Kansas San Acceptances maturing— Boston. York. delphia. land. mond. lanta. cago. Louis. apolis. City. Dallas. Fran- Total. cisco. Within 10 days: June 30. .1 508 3,285 1,214 796 565 447 170 175 8,140 July7 76 1,681 1,570 129 320 50 448 308 71 56 4,790 July 14 226 3,493 1,568 413 30 9 456 380 182 213 336 7,306 July 21 1,220 4,015 1,445 623 1,085 468 448 314 303 11,418 From 11 to 30 days: June 30 1,175 4,145 2,565 597 272 776 545 330 302 947 12,455 July7... 2,629 4,250 2,026 1,298 480 474 1,192 1,052 597 451 1,698 16,147 July 14 4,051 4,756 2,508 1,516 1,356 465 1,565 996 566 391 1,758 19,928 July 21 4,532 4,364 3,011 1,712 300 21 1,388 1,002 506 387 2,254 19,477 From 31 to 60 days: June 30... 5,695 5,298 3,465 1,799 544 1,533 1,253 490 2,590 23,249 July7 6,181 8,177 3,547 1,577 793 1,205 1,354 625 286 2,778 26,523 July 14.. 5,842 8,767 4,152 2,140 238 823 1,928 1,864 780 195 3,086 29,815 July 21.... 4,842 9,742 4,138 2,659 261 813 2,222 2,268 861 37 2;261 30,104 From 61 days to 3 months: June 30 5,079 10,756 3,032 1,966 565 1,298 1,670 38 1,944 27,151 July7.. 3,207 9,249 3,091 1,888 64 1,354 1,353 715 37 1,722 26,68a July 14 1,986 11,093 3,279 1,894 150 1,490 1,418 703 2,068 24,081 July 21 1,667 11,328 2,801 2,142 204 1,669 1,398 739 2,434 24,382 Total acceptances held: June 30. 12,457 23,484 10,276 5,158 801 1,381 4,172 3,915 1,985 1,005 6,461 71,095 July7 12,093 23,357 10,234 4,892 800 1,381 4,199 4,067 2,008 830 6,287 70,148- July 14 12,105 28,109 11,507 5,963 1,624 1,448 5,439 4,658 2,231 798 7,248 81,130 July 21 12,261 29,449 11,395 7,136 1,646 1,506 5,848 5,116 2,420 727 7,877 85,381 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

424 FEDERAL RESERVE BULLETIN. AUGUST 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 6 months ending June, 1916. [In thousands of dollars.] Atlanta Acceptances maturing— Boston. Y N o e r w k. P p d h h e i i l l a - a . - C la le n v d e . - m R o ic n h d - . i ( O n in g rl c e N l a u e n d w s - Ch g i o c . a- 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 - . T s f o y o s t r a - l Branch.) tem. Within 30 days: Calendar vear 1915 497 1,246 695 101 7 156 103 45 69 61 2 980 Tanuarv 1916 48 587 64 20 9 6 734 909 277 50 41 1 50 125 1 453 March 1916 680 741 15 18 1 454 ADril 1916 23 1,000 2 4 1 029 Mflv 1916' 128 408 1 382 20 220 49 2 207 Tune 1916 174 2,121 1,152 208 503 50 113 355 4,676 Total 847 5,974 5,247 423 579 277 289 103 66 78 50 600 14 533 After 30 days, but within 60 days: Ca Isndo-r VGar 1915 - - • -. - 2,137 2,377 1,464 746 19 816 374 191 183 750 9,057 TanuarV 1916 102 621 43 42 279 43 6 55 13 1,204 41 313 36 30 116 50 33 22 13 654 March 1916 98 520 1,835 70 18 150 146 44. 151 107 3 j3g A At>ril 1916 235 765 335 214 480 214 478 137 153 115 277 3 403 May 1916 99 925 510 315 481 14 166 327 126 82 300 3 345 June, 1916 . 858 1,919 1,257 596 15 651 448 268 34 1,589 7 635 Total 3,570 7,440 5,480 2,013 961 280 2,656 1,525 821 642 3,049 28 437 After 60 days, but within 3 months: Calendar year 1915 .... 11,471 22,211 5,406 2,116 250 46 4,810 1,324 1,219 1,536 2 419 52 808 Januarv 1Q16 2,681 2,686 151 267 300 489 357 200 151 304 7 586 ^ebruarv 1Q16 3,686 4,157 396 395 65 656 143 194 197 420 10* 309 March 1916 .. 5,913 6,978 2,183 579 421 787 355 365 285 459 18* 325 ADril 1916 1,497 5,690 2,655 684 234 1,092 602 381 325 907 v14 067 May 1916 3,633 4,010 2,217 1,397 288 962 1,074 502 639 1,638 16'360 June 1916 6,639 10,914 3,357 2,150 818 1,403 1,790 858 38 2,119 30 086 Total 35,520 56,646 16,365 7,588 250 2,172 10,199 5 645 3,719 3,171 8,266 149'541 Total acceptances bought: Calendar vear 1915 14,105 25,834 7 565 2,963 ' 250 72 5,782 1 801 1,455 1,788 3 230 64 845 January 1916 2,831 3,894 194 373 300 768 400 226 215 323 9 524 February, 1916 . .. 3,727 5,379 709 475 41 65 772 193 228 219 50 558 12 416 March, 1916 6,011 8,178 4,759 649 15 439 955 501 409 436 566 22,918 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 June 1916 7,671 14,954 5,766 2,954 503 ' 883 2,167 2,238 1,126 72 4,063 42 397 Total ... 39,937 70,060 27,092 10,024 1,790 2,729 13,144 7,273 4,606 3,891 50 11,915 192,511 Distribution of bills bought in open market by all the Federal Reserve Banks during the month of June, 1916, by classes of acceptors and sizes. To $5,000. To $10,000. To $25,000. To $50,000. To $100,000. Over $100,000. Total. Acceptances by classes. 8 Member banks 283 $780,279 341 $2,897,577 478 $7,251,178 86 $3;., 644,207 35 $3,.488,878 13$2!;, 369,645 1,236 $20,431,764 48.2 Trust companies.. 114 283,716 115 960,102 190 3,177,187 2,680,654 ' 20 1,439,940 12 1,849,787 "509 10,391,386 24.5 State banks 21 86,250 9 101,250 30 187,500 .4 Private banks..... 85 222,598 119 1,005,388 131 2,567,131 1,781,925 27 1,782,153 10 1,342,152 416 8,701,347 20.6 Total bankers' acceptances 503 1,372,843 575 4,863,067 808 13,096,746 188 8,106,786 82 6,710,971 35 5,561,584 2,191 139,711,997 93.7 Trade acceptances. 59 160,325 162 1,375,101 45 642,892 102,827 52,255 351,752 272 2 2,685,152 6.3 Total biUs bought in the open market 562 1,533,168 737 6,238,168 85313,739,638 192 8,209,613 83 6,763,226 37 5,913,336 2,463 42,397,149 100.0 Per cent 3.6 14.7 32.4 19.3 16.0 14.0 100.0 Total, 6 m b ri-t h s ending June, 1916. 1,915 5,671,952 1,85015,310,974 2,247 39,360,663 598 23,596,676 277 23,152,447 108 20,573,414 127,666,126 I 1 Of the above total, bankers' acceptances totaling $39,367,197 were based on imports and exports, and $344j800 on domestic trade transactions 2 Of the above total, trade acceptances totaling $2,655,152 were drawn abroad on importers in the United States and indorsed by foreign banks while $30,000 represents the amount of domestic trade transactions bought in«*the open market during the month. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

AUGUST 1, 1916. FEDERAL RESERVE. BULLETIN. 425 Amount of short-term investments (municipal warrants) held by each of the Federal Reserve Banks at close of bus[ Fridays, June 30 to July 21, 1916, distributed by maturities. [In thousands of dollars.] Warrants maturing. t B o o n s . - Y N o e r w k. P p d h h e i i l l a a - . - C la le n v d e . - m R o ic n h d - . la A n t t - a. c C a h g i o - . Lo S u t. is. M ap i o n l n is e . - K C s i a a t n s y - . Dallas. F c S i r s a a c n n o - . Total, Within 10 days: June 30 230 218 50 53 25 763 July 7 691 250 25 252 1,247 July 14 25 494 275 277 1,099 July 21 77 200 55 927 From 11 to 30 days: June 30 192 195 545 426 312 1/790 July7 318 176 97 231 88 1,069 July 14. 294 151 94 206 63 968 July 21 153 35 48 31 34 351 Prom 31 to 60 days: June 30 21 305 32 305 18 53 878 July7 40 2,219 269 2,175 10 396 124 77 141 5,476 July 14... 60 3,485 527 2,198 10 622 380 87 187 7,592 July 21 60 3,389 503 2,379 260 660 405 87 8,172 "From 61 to 90 days: June 30... 143 2,391 290 2,651 10 322 225 124 506 6,709 July7 103 412 109 955 50 601 126 440 2,941 July 14. 83 260 84 932 76 750 65 394 2,768 July 21.. 133 210 84 745 76 951 40 62 394 2,706 From 91 days to 6 months: June 30 2,346 2,751 1,300 1,459 2,362 678 584 761 12,531 July 7 2,421 3,061 1,652 1,182 2,938 972 796 340 1,141 14,503 July 14 2,421 3,436 1,737 1,182 2,743 1,176 821 340 1,141 14,997 July 21 2,371 3,486 1,787 1,345 2,677 1,271 871 340 1,420 15,568 •Total municipal warrants held: June 30 2,750 5,639 1,899 4,941 3,468 976 796 430 1,712 22,671 July7 2,595 6,010 2,235 5,100 4,416 1,270 1,008 480 2,062 25,236 July 14 2,595 7,500 2,527 4,900 4,596 1,670 1,033 455 2,062 27,424 July 21 2,595 7,531 2,550 4,594 336 4,519 1,765 1,083 455 2,296 27,724 Total investment operations of each Federal Reserve Bank during the month of June, 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 k r r s - . a B a c n e a c r c n e ' e s p k , s t - . - a T a c n r c c a e e d p s e t . - Total. City. State. ot A h l e l r. Total. c 2 e p n e t. r c 3 e p n e t. r 4 ce p n e t, r n 1- o y t e e a s r . ! 1916 1915 Boston 466.8 7,589.1 81.6 7,670.7 320.2 320.2 8,457.7 1,652.7 New York... 348.4 14,607.8 345.914,953.7 1,933.3 50.9 1,184.2 12.5 112.5 17,298.8 5,262.1 Philadelphia 945.7\ 5,601.6 1'"6' 4."3 "),765.9 572.2 20.4 25.0 617.6 7,329.2 1,526.3 Cleveland........ 157.0 788.7 165.7 !,954.4 984.6 20.4 1,005.0 85.0 319.0 404.0 4,520.4 1,094.4 Richmond 2,832.3 502.5 502.5 50.5 50.5 3,385.3 4,004.3 Atlanta.......... 1,165.5 853.4 30.0 883.4 2,048. 9 2,358.0 Chicago 1,564.3 166.9 J, 166.9 584.9 15.3 600.2 4,331.8 1,361.6 St. Louis 323.2 238.4 5,238.4 339.9 15.3 355.2 2,916.8 554.3 Minneapolis 480.3 126.4 .,126.4 217.0 .10.1 227.1 115.54 20.0 - 2135.54 1,969.34 1,019.3 Kansas City 824.7 71. 71.9 8.0 8.0 525.0 525.0 1,429.6 435.9 Dallas.... 2,275.7 245.0 245.0 2,520.7 2,477.1 San Francisco 276.1 2,165.3 4,062.9 0.4 20.4 309. 648.8 1,433.3 Total: June, 1916....11,660.0 39,712.0 2,68>5E .1t''.4A2,397.1 5,300.0 152.8 25.0 5,477.8 867.5. 434.94 20.0 1,322.44 60,857.34 June, 1915.... 13,406.0 4,701.0 4,701.0 4,512.8 200.0 359.5 559.5 23,179.3 6 months ending June 30, 1916 62,543.6121,931.3 5,734.8 127,666.1 51,497.0 2,803.0 175.154,475.134,488.6 3,622.82 4,128.0 50.0 42,289.42 286,974.22 6 months ending June 30, 1915........ 72,743.8 22,606.0 — 122,606.0 29,065.6 5,771.751,704.5 7,476.25 131,891.65 1 Sold $25,000 of 3 per cent conversion bonds of 1946. 2 Sold $10,200 of 3 per cent conversion bonds of 1946. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

426 FEDERAL RESERVE BULLETIN. AUGUST 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 SO to July 21, 1916. RESOURCES. [In thousands of dollars.] Boston. Y N o e r w k. d P el h p i h la i - a. C la le n v d e . - m R o ic n h d - . la A n t t - a. Chicago. Lo S u t. is. M ap i o n l n is e . - 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 . Gold coin and certificates in vaults: June 30 5,326 156,391 7,572 12,803 5,110 6,4S9 40,137 5,408 6,695 •4,254 5,286 6,567 262,038, Julv7. -- 6,276 157,227 6,721 12,869 5,110 5,942 39,539 5,013 6,210 4,261 5,248 6,826 261,242: July 14 .. 6,675 162,823 11,222 12,961 5,141 5,968 36,561 5,672 6,021 4,154 5,237 7,167 269,602 July21 7,892 151,815 8,512 13,775 5,205 6,302 37,419 4,047 6,003 4,384 5,260 8, 435 262,049- Gold settlement fund: June 30 14,777 3,927 15,553 11,343 14,801 4,655 5,379 9,326 9,103 8,798 112,931 July7. -.-- 16,667 4,761 16,416 12,405 15,826 5, 9,939 5,878 5,777 10, 587 10,002 8,953 122,600* J J u u l l y y 2 1 1 4. 2 1 0 6 , , 1 0 6 5 3 2 6 4 , , 0 36 1 7 0 1 1 6 2 , , 2 2 0 7 0 5 1 1 1 1, , 1 8 6 9 1 8 1 11 0 , , 5 5 3 6 8 1 1,504 1 7 1 , , 8 0 3 16 2 6 5, , 6 1 4 9 9 7 5 4, , 6 6 0 5 8 7 1 11 1 , , 7 5 1 3 1 9 9 4, , 5 7 4 5 1 9 6 9 , , 2 7 2 6 1 3 1 9 1 9 8 , , 5 6 6 3 1 1 Gold redemption fund: 1,940 June 30 5 250 50 18 420 471 200 17 30 63 255 10 1, 789 July 7.". 5 250 50 65 413 462 200 108 30 159 259 10 2,011 July 14. 5 250 50 59 407 453 200 90 30 157 259 10 1,970 July21 5 250 50 55 423 447 200 65 30 145 251 10 1,931 Legal tender notes, silver, etc.: June 30 20,612 317 1,057 203 606 1,821 1,130 616 166 885 9 27,448 July7...:.........-.. 46 31,223 135 1,068 172 853 1,050 1,127 298 90 809 11 36,882 July 14 15 4,762 111 1,097 182 1,002 737 1,135 300 85 800 23 10,279" July21 246 7,426 165 1,146 203 1,078 1,098 1,148 76 786 34 13,802 Total reserve: June 30 20,134 181,180 23,492 25,221 20,534 12,955 52,038 11,210 12, 720 13,809 15,529 15,384 404,206- July7 22,994 193,461 23,322 26,407 21,521 12,646 50,728 12,126 12,315 15,097 16,318 15,800 422,735 July 14 26,888 172,202 27,613 26,015 16,268 8,927 48,514 13,094 12,008 15,935 16,055 16,963 400,482- July 21... 24,195 168,501 21,002 26,137 17,392 9,767 46,549 10,909 11,037 16,316 10,838 14,700 377,343 Five per cent redemption fund against Federal Reserve bank notes: June 30 400 450 July7 400 46a July 14 400 45a July 21 400 450 Bills discounted—members: June 30 183 530 270 5,369 2,783 2,052 584 947 1,911 5,663 21,188 July7 89 370 585 471 5,285 2,734 2,581 613 1,126 1,900 5,697 532 21,983- July 14 181 325 823 546 5,505 2,707 3,633 644 1,219 1,943 5,892 550 23,96a July 21 :....: 4,057 281 1,095 434 5,810 2,842 3,626 758 1,434 1,908 6,134 558 28,937 Bills bought in open market: June 30 12,457 23,484 10,276 5,158 801 1,381 4,172 3,915 1,985 1,005 6,461 71,095- July7 12,093 23,357 10,234 4,892 800 1,381 4,199 4,067 2,008 830 6,287 70,148 July 14... 12,105 28,109 11,507 5,963 ,624 1,448 5,439 4,658 2,231 798 7,248 81,130 July 21 12,261 29,449 11,395 7,137 ,646 1,506 5,848 5,116 2,420 727 7,877 85,382. United States bonds: June 30 3,082 3,476 3,538 6,756 ,605 1,684 9,753 2,959 3j 513 9,853 3,111 3,609 52,939 July7 3,082 3,482 3,182 6,756 ,605 1,684 9,753 2,959 3,513 9,853 3,111 3,609 52,589 July 14 3,082 3,482 3,182 6,756 ,605 1,684 9,753 2,959 3,513 9,853 3,111 3,609 52,589 July 21. 3,082 2,732 3,182 5,756 377 1,508 9,753 2,770 3,513 9,853 3,111 3,109 49,746. One year treasury notes: June 30 250 1,532 462 350 380 350 410 4,19a July 7..... .- 250 1,532 818 456 350 350 410 4,546 July 14 250 1,532 818 456 350 350 410 4,546 July 21 -.. 250 2,282 818 800 526 570 350 410 500 7,19a Municipal warrants: June 30 2,750 5,639 1,899 4,941 60 3,468 976 796. 430 1,712 22,671 July7 2,595 6,010 2,235 5,100 60 4,416 1,270 1,008 480 2,062 25,236 July 14 2,595 7,500 2,527 4,900 86 4,596 1,670 1,033 455 2,062 27,424 July 21 2,595 7,531 2,549 4,594 336 4,519 1,765 1,083 455 2,296 27,725 Federal reserve notes, net: June 30 742 13,821 634 309 1,798 1,700 1,297 903 1,978 23,182 July7 14,997 481 187 1,605 1,658 1,364 1,079 1,756 24,113 July 14 11,554 461 194 1,633 1,678 1,391 1,365 1,664 20,76a July 21 739 11,826 487 259 1,106 1,246 1,153 1,449 1,749 20,014 Due from other Federal Reserve Banks, net: June 30 7,666 4,220 1,413 1,580 463 5,466 2,408 1,333 1,414 634 1,841 120,414 July7 , 5,831 8,067 1.749 1,224 902 7,454 2,386 1,357 2,054 226 2,878 120,422 July 14 1,921 1,595 2,537 1,609 1,001 5,639 2,494 1.018 1,446 100 1,751 120,056 July 21 2,331 2,028 6,909 3,274 653 1,963 53 126 i 11,982 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

AUGUST 1, 1916. FEDERAL RESERVE BULLETIN. 427 .Resources and liabilities of the Federal Reserve Banks and of the Federal Reserve System at close of business on Fridays, June 30, to July 21, 1916—Continued. RESOURCE S—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 nt t a - . Chicago. Lo S u t. is. M ap i o n l n is e . - K C a i n t s y a . s Dallas. c F S i r s a a c n n o - . sy T s f o o t t e r a m l . All other resources: June 30 59 316 58. 350 164 1,333 618 411 131 327 688 167 4,622 July 7.... 102 244 160 412 149 1,160 549 413 86 183 427 255 4,140 July 14 38 4,134 48 421 197 1,032 902 378 106 182 545 261 8,244 July 21.......... 432 187 65 468 151 823. 791 527 89 251 805 167 4,756 Total resources: June 30 47,323 229,896 45,109 44,418 30,569 22,747 79,267 24,140 22,678 29,559 25,675 31,600 624,957 July 7 48,022 243,453 49,084 45,974 31,100 22,462 81,338 25,578 22,842 31,207 25,829 33,179 646,362 July 14 47,880 228,838 48,574 47,332 27,350 18,782 80,154 27,668 22,843 31,422 25,753 34,108 639,649 July 21 47,611 222,789 42,924 47,613 27,396 18,078 79,241 26,842 22,028 32,283 20,991 31,082 613,523 LIABILITIES. [In thousands of dollars.] Capital paid in: June30.. 4,925 11,281 5,215 3,357 2,468 2,790 2,576 2,999 2,676 54,854 July7...... :. 4,925 11,281 5,216 5,966 3,357 2,468 6,668 2,790 2,576 2,999 2,679 3,933 54,858 July 14 4,925 11,596 5,216 5,966 3,357 2,468 2,792 2,576 2,999 2,679 3,933 55,176 July 21 4,925 11,594 5,216 5,966 3,357 2,491 2,792 2,576 2,997 2,679 3,921 55,183 •Government deposits: June 30 8,636 29,311 10,532 3,244 8,202 9,225 11,974 4,962 801 2,644 6,439 5,182 101,152 July7 8,320 40,399 10,747 3,377 8,524 9,678 11,929 5,221 774 3,221 6,722 5,508 114,420 July 14 8,061 34,169 10,692 3,550 3,985 5,097 9,348 5,884 670 3,297 6,906 5,817 97,476 July 21..,.. 3,877 18,085 6,105 2,749 3/403 4,366 3,604 4,177 819 2,344 2,005 2,743 54,277 Hember bank deposits, net: June 30 33,676 181,280 29,346 35,208 14,851 10,935 60,625 19,301 21,327 12,081 22,485 457,503 July7 34,677 178,067 33,078 36,631 14,950 10,315 .62,741 17,567 19,492 22,078 11,813 23,738 465,147 July 14...... 34,799 182,018 32,616 37,816 15,771 11,214 64,137 18,992 19,597 22,088 11,536 24,358 474,942 July 21 38,073 189,966 31,551 16,094 10,028 19,873 18,633 23,810 11,688 24,418 492,000 Federal Reserve notes, net liability: June 30 4,093 4,479 9,440 July7 4,189 1,188 4 "" 9,992 July 14 4,148 i 1,318 4,632 10,098 July 21 4,061 1,440 4,619 10,120 JFederal Reserve bank notes in circulation: June 30 1,721 1,721 July7 1,721 1,721 July 14 1,720 1,720 July 21 1,692 1,692 'Due to other Federal Reserve Banks, net: June 30 8,024 Jnly7 13,706 July 14 1,055 July 21 634 3,144 386 1,191 All other liabilities: June 30 16 66 119 287 July7 100 43 80 1 224 July 14 95 50 89 3 237 July 21 102 52 95 2 251 Total liabilities: June 30 47,323 45,109 44,418 30,569 22,747 79,267 24,140 22,678 29,559 25,675 31,600 624,957 July7 48,022 243,453 49,084 45,974 31,100 22,462 81,338 25,578 22.842 31,207 25,829 I 33,179 646,362 July 14 47,880 228,838 48,574 47,332 27,350 18,782 80,154 27,668 22.843 I 31,42225,753 34,108 639,649 July 21 47,611 222,789 42,924 47,613 27,396 18,078 79,241 26,842 22,028 i 32,28320,991 31,082 613,523 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

428 FEDERAL RESERVE BULLETIN. AUGUST 1,1916- Circulation of Federal Reserve notes at close of business on Fridays June 30 to July 21, 1916. [In thousands of dollars.] Boston. Y N o e r w k. d P el h p i h la i - a. C la le n v d e , - m R o ic n h d - . A t tl a a . n- Chicago. Lo S u t. is. M ap i o n l n is e . - City. Dallas. F ci r s a c n o - . T sy o s ta te l m fo . r Federal Reserve notes issued to the bank: June 30 10,235 69,474 7,313 9,920 9,628 14,122 3,639 6,791 12,143 9,201 13,957 9,745 176,16$ July7 10,663 71,060 8,160 9,887 9,649 13,998 3,633 6,768 12,625 9,292 14,319 9,729 179,783 July 14 10,606 70,731 7,982 9,762 9,578 13,998 3,625 12,808 9,482 14,319 9,729 179,358- July 21.. 10,548 66,933 7,947 9,735 9,419 13,904 3,620 12,808 9,714 14,277 9,616 175,219 Federal Reserve notes in hands of bank: June 30 742 13,821 634 309 427 1,798 1,700 1,297 217 1,978 23,924 July 7....„....• 14,997 481 187 431 1,605 1,658 1,364 1,079 142 412 1,756 25,098 July 14. 11,554 461 194 472 1,633 1,678 1,391 1,365 152 395 1,664 21,779; July 21. 739 11,826 487 259 559 1,106 1,246 1,153 1,449 200 408 1,749 21,181 Federal circulation: June 30 9,493 55,653 6,679 9,611 9,201 12,324 1,939 5,494 11,240 8,984 13,859 7,767 152,244 J l7y. 9,677 56,063 7,679 9,700 9,218 12,393 1,975 5,404 11,546 9,150 13,907 7,973 154,685 July 14 9 786 59,177 7,521 9,568 9,106 12,365 1,947 5,347 11,443 9,330 13,924 8,065 157,579 July 21 9,809 55,107 7,460 9,476 12,798 2,374 5,545 11,359 9,514 13,869 7,867 154,038 Gold and lawful money deposited with or to the credit of the Federal Reserve Agent: June 30 10,235 69,474 7,313 9,920 5,108 14,122 3,639 6,791 12,143 8,116 9,380 9,745 165,986 July7 10,663 71,060 8,160 9,887 5,029 13,998 3,633 6,768 12,625 7,962 9,292 9,729 168,806 July 14 10,606 70,731 7,982 9,762 4,958 13,998 3,625 6,738 12,808 8,012 9,292 9,729 168,241 July 21..........V..-.. 10,548 66,933 7,947 9,735 4,799 13,904 3,620 12,808 8,074 9,250 9,616 163,932 Carried to net assets: June 30 742 13,821 634 309 1,798 1,700 1,297 1,978 23,182 July7...... 14,997 • 481 187 1,605 1,658 1,364 1,079 1,756 24,113 July 14..... 11,554 461 194 1,633 1,678 1,391 1,365 1,664 20,760 July 21..... 739 11,826 487 259 1,106 1,246 1,153 1,449 1,749 20,014 Carried to net liabilities: June 30 4,479 9,440 July7 1,188 4,615 9,992 July 14... 4,148 1,318 10,098 July 21...... 4,061 1,440 4,619 10,120 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

AUGUST 1, 1916. FEDERAL RESERVE BULLETIN. 429 Statement of Federal Reserve Agents' accounts at close of business on Fridays, June 30 to July 21, 1916. [In thousands of dollars.] Boston. Y N o ew rk. d P el h p i h la ia - . C la le n v d e . - m R o ic n h d - . la A n t t - a. Chicago. Lo S u t. is. M ap i o n l n is e . - K C a i n t s y a . s Dallas. F c S i r s a a c n n o - . sy T s o f t o t e r a m l . Federal Reserve notes: Received from Comptroller- June 30 20,380 119,240 15,480 15,160 17,000 20,400 9,600 19,000 13,000 23,580 13,320 295,540 July? 20,380 119,240 15,480 15,160 ]7,000 20,400 9,380 9,600 19,000 13,000 23,580 13,320 295,540 July 14 20,380 121.240 15,480 15,160 17,000 20,400 9,380 9,600 19,000 13,000 23,580 13,320 297,540 July 21 20,380 121,240 15,480 15,160 17,000 20,400 9,380 9,600 19,000 13,000 23,580 13,320 297,540 Returned to Comptroller- June 30 3,425 31,966 3,547 1,740 3,872 1,047 327 2,584 775 53,206 July7 3,497 32,380 3,600 1,773 3,951 2,306 1,070 345 1,035 2,672 791 54,286 July 14..... 3,554 32,709 3,778 1,898' 4,022 2,306 874 1,100 362 1,035 2,672 791 55,101 July 21 3,612 36,507 3,813 1,925 4,181 2,400 879 1,140 362 1,073 2,714 904 59 510 Chargeable to Federal Reserve Agent- June 30.. 16/955 87,274 11,933 13,420 13,128 18,218 8,520 8,553 18,673 12,119 20,996 12,545 242,334 July7 16,883 86,860 11,880 13,387 13,049 18,094 8,514 8,530 18,655 11,965 20,908 12,529 241 254 July 14..... 16,826 88,531 11,702 13,262 12,978 18,094 8,506 8,500 18,638 11,965 20,908 12,529 242,439 July 21.. 16,768 84,733 11,667 13,235 12,819 18,000 8,501 8,460 18,638 11,927 20,866 12,416 238,030 In hands of Federal Reserve Agent— June 30.. 6,720 17,800 4,620 3,500 3,500 4,096 4,881 1,762 6,530 2,918 7,039 2,800 66,166 July7 6,220 15,800 3,720 3,500 3,400 4,096 4,881 1,762 6,030 2,673 6,589 2,800 61,471 July 14 6,220 17,800 3,720 3,500 3,400 4,096 4,881 1,762 5,830 2,483 6,589 2,800 63,081 July 21 6,220 17,800 3,720 3,500 3,400 4,096 4,881 1,762 5,830 2,213 2,800 62,811 Issued to Federal Reserve Bank, net— June 30 10,235 69,474 7,313 9,920 9,628 14,122 3,639 6,791 12,143 9,201 13,957 9,745 176,168 July7 10,663 71,060 8,160 9,887 9,649 13,998 3,633 6,768 12,625 9,292 14,319 9,729 179,783 July 14 10,606 70,731 7,982 9,762 9,578 13,998 3,625 6,738 12,808 9,482 14,319 9,729 179,358 July 21 10,548 7,947 9,735 9,419 13,904 3,620 12,808 9,714 14,277 9,616 175,219 Amounts held by Federal Reserve Agent: In reduction of liability on outstanding notes- Gold coin and certificates on hand— * June 30 9,700 65,817 3,690 9,380 2,850 10,120 4,000 8,040 113,597 July 7 9,700 63,817 4,090 9,330 2,850 10,620 4,000 8,040 112,447 July 14 9,700 63,817 4,090 9,250 2,850 10,820 4,050 8,040 112,617 July21 9,700 60,317 4,090 9,200 2,850 10,820 4,150 8,040 109,167 Credit balances in gold redemption fund- June 30 535 3,657 333 540 408 1,122 329 391 673 616 810 395 9,809 July 7 963 7,243 557 323 655 462 722 379 13,379 July 14 906 6,914 332 512 358 315 638 462 822 379 12,974 July 21 848 6,616 497 535 299 904 310 424 780 266 12,415 Credit balances withFederalReserve Board- June 30 !,290 4,700 13,000 3,310 3,550 1,350 3,500 530 9,350 42,580 July7 3. 4,700 13,000 3,310 3,550 1,350 3,500 530 9,350 42,980 July 14 3; 560 4,600 13,000 3,310 3,550 1,350 3,500 430 9,350 42,650 July 21 3,360 4,500 13,000 3,310 3,550 1,350 3,500 430 9,350 42,350 As security for outstanding notes— Commercial paper- June 30 4,520 1,085 4,577 10,182 July7 4,620 1,330 5,027 10,977 July 14 4,620 1,4.70 5,027 11,117 July 21 4,620 1,640 5,027 11,287 Total- June 30 10,235 69,474 7,313 9,920 9,628 14,122 3,639 6,791 12,143 9,201 13,957 9,745 176,168 July7 10,663 71,060 8,160 9,887 9,649 13,998 3,633 6,768 12,625 9,292 14,319 9,729 179,783 July 14 10,606 70,731 7,982 9,762 9,578 13,998 3,625 6,738 12,808 9,482 14,319 9,729 179,358 July 21 10,548 7,947 9,735 9,419 13,904 3,620 12,808 9,714 14,277 9,616 175,219 Memorandum: Total amount of commercial paper delivered to Federal Reserve Agent— June 30 5,163 1,091 4,950 11,204 July7 4 — 1,339 5,128 11,305 July 14 6,307 1,570 5,564 13,441 July 21 5,603 1,640 5,634 12,877 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

430 FEDERAL RESERVE BULLETIN. AUGUST 1, 1916. GOLD IMPORTS AND EXPORTS. Below are given data showing the imports ing June 30, 1914 to 1916. These data were and exports of gold, classified by countries of prepared and furnished to the Board by the origin and destination, also under the heads of Bureau of Foreign and Domestic Commerce of ore, bullion, and coin, for the fiscal years end- the Department of Commerce: Imports and exports of gold, by countries, during the 12 months ending June 30, 1914, 1915, and 1916. Countries. 1914 1915 1916 France ----- Jl,., 195,284 $11,552,926 $15,406 Germany.... :... 14,176 United Kingdom: England 2,565,423 1,965,270 117,996,063 Scotland. 43,000 Canada 38,319,111 110,761,093 267,461,590 Central American States. 490,450 2,751,572 3,427,321 Mexico. •.•': 116,942 6,324,163 6,246,249 West Indies. 044,005 3,393,944 25,037,153 South America 342,955 6,301,321 16,905,993 China. 6,268,263 1,631,803 Japan.. 480,040 17,745,162 9,207,136 Australia 559,554 706,241 39,305,148 All other countries. 410,719 3,798,800 6,732,439 Total. 66,538,659 171,568,755 494,009,301 EXPORTS—FOREIGN AND DOMESTIC. Belgium.. 221,310 France ---, 86,021,273 6,761,361 Germany ......... 1,018,913 United Kingdom—England. 1,296,771 27,226,603 5,774,998 Canada 19,388,441 103,455,383 15,309,139 West Indies: Cuba 1,186,278 6,325,086 27,776,310 Other West Indies 175,676 243,220 753,183 All other North America 2,220,090 352,132 1,611,296 South America 494,012 1,515,658 10,001,538 China 4,805,937 Hongkong 5,890 46,905 4,844,494 All other countries 9,875 297,800 19-371,187 Total. 112,038,529 146,224,148 90,248,082 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

AUGUST l, 1916. FEDERAL RESERVE BULLETIN. 431 Imports and exports of gold in ore, bullion, and coin, by customs districts, fiscal year ending June SO, 1916. Coin. Ore and Customs districts. base Bullion, refined. Total gold. bullion. United Foreign. States. Ozs. (troy). Maine and New Hampshire. $1,200 2 $50 $48,390,003 $11,651,680 $60,042,933 Massachusetts 3,000 3,000 New York 771,431 i5,*469,"i3i' 7,423,055 134,898,673 159,152,339 Philadelphia 2,507,200 2,507,200 Porto Rico 2,115 2,115 Rhode Island 1,302 27,474 27, 474 Florida 47,799 4,391,000 4,438,799 New Orleans. * 421,-951 10,600 38,500 471,051 Arizona 527,592 12,752 251, 778,625 Eagle Pass. 6,617 1 6,642 El Paso 155,699 5,498 110, 266,280 Laredo 164,934 164,934 143,685 203,826 3,300, 9,390 3,454,058 San Francisco 2,253,865 513,374 10,195, 2,920 45,635,208 58,087,257 Southern California. 3,019 325 6, 505 10,189 Washington. ... 3,691,585 181,564 2,959, 62,425 498,000 7,2*1,455 1109,584 2,122, Buffalo .:. 3,630,086 88,621 1,635, 7,388,229 Chicago 4,534 4,534 Dakota.... 255,577 255,577 Duluth and Superior. 825 250 1,075 Michigan 1,842,788 120 1,842,908 Ohio 2^500 .- 2,500 St. Lawrence. 965 / \ 4 1 , 2 7 4 2 1 7 , , 5 3 6 9 7 8 9 4 7 , , 9 3 6 3 7 4 , , 7 3 2 1 3 7 } 3,771,541 81,813,216 187,887,762 Vermont. 1,360 1,000 2,365 Total... 14,468,907 6,857,245 138,380,834 59,722,083 281,437,477 494,009,301 EXPORTS—DOMESTIC. Maine and New Hampshire 1,500 . 760 2,260 New York 345,546 7,139,906 24,607,553 31,747,459 Porto Rico 15,000 15,000 New Orleans . 10,000 10,000 Alaska ., 50,588 50,588 Hawaii. 127,830 127,830 San Francisco.... ... . 1339,278 7,016,470 16,286,651 23,303,121 Washington 300,454 958 19,138 139,928 459,520 Buffalo-..-. 88,731 11 1 1 0 , , 6 6 9 3 1 5 2 2 2 4 0 1 , , 0 69 0 5 6 • 926,646 1,477,078 Duluth and Superior. 122 449 2,414 96 1,905 Michigan... 1,667 34,408 485 34,893 Montano and Idaho... 2,855 2,855 St. Lawrence. 148,4 1 8 2 8 6 1,0 " 0 4 2 ,3 ,5 9 9 0 1 2,243,715 3,250,696 Vermont. 1,022 19,251 750,300 769,551 Total ... ... 441,273 759,529 15,700,269 45,111, 723 61,253,265 EXPORTS—FOREIGN. Maine and New Hampshire.. 2, 2,150 New York 19,662. 19,662,518 El Paso s; 8,093 Alaska 185 San Francisco 64, 64,922 Buffalo.... 133, 133,176 Duluth and Superior 1, 1,000 Michigan 2, 2,741 St. Lawrence 519 10,395 9,109, 9,120,032 Total. 519 10,395 28,984,422 28,994,817 1 United States mint or assay office bars. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

432 FEDERAL RESERVE BULLETIN. AUGUST 1, 1916. Imports of gold, by customs districts, Jan. 1 to July 21, 1916. [In thousands of dollars.] weN dna eniaM .erihspmaH ehtu rof waL .latoT Week ending June 30. Ore and base bullion. 73 15 72 148 24 351 Bullion, refined...... 264 132 47 25,398 25,842 Foreign coin 1,228 6,813 8,041 Total 1,565 15 72 280 47 24 32,211 34,234 Week ending July 7. Ore and base bullion 67 7 130 55 265 United States mint or assay office bars 205 205 Bullion, refined 9,863 "126 9,993 Foreign coin 3,684 3,689 Total 13,614 133 130 205 55 14,152 Week ending July 14. Ore and base bullion 26 10 13 18 150 12 29 267 United States mint or assay office bars 3 Bullion, refined 619 132 -17 103 106 12,000 12,981 Foreign coin 2,492 2,492 Total 3,137 10 145 18 17 253 109 12 29 12,000 15,743 Week ending July 21. Ore and base bullion 46 198 271 United States mint or assay office bars 210 210 Bullion, refined 20,000 433 103 7,479 28,015 United States coin Foreign coin ""2 Total 20,000 481 301 210 7,479 28,506 Jan. 1 to July 21. Ore and base bullion . 1,352 198 346 69 148 36 1,273 1,965 597 177 1,044 7,212 United States mint or assay office bars 2,478 2,478 Bullion, refined 20,000 121 31 638 3,112 856 990 119,479 163,979 United States coin .... 115 41 1 55 1,777 1,994 Foreign coin 28,521 4," 867' 9482 72,880 Total. 20,002~48,716 41 212 467 100 148 675 9,252 27 2,876 4,065 177 1,044 160,738 248,543 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

AUGUST 1, 1916. FEDERAL RESERVE BULLETIN. 433 Exports of gold, by customs districts, Jan. 1 to July 21, 1916. [In thousands of dollars.] Week ending June 30. United States mint or assav office bars Bullion refined domestic TTnitfid 'States nnin Total Week ending July 7. United States mint or assay office bars United States coin Foreign coin Total Week ending July 14. Bullion, refined, domestic.. TTnitfifl 'Sta.fiAS o.mr\ Total Week ending July 21. United States mint or assay office bars Bullion, refined TJnited States coin Foreign coin . ... Total Jan. 1 to July 21,1916. Ore and base bullion United States mint or assay office bars Bullion, refined: Domestic Foreign United States coin Foreign coin Total weN dna eniaM .erihspmaH 2 2 .kroY weN 520 250 770 3 523 255 3 778 8 630 638 244 4 248 758 4 208 1 438 20,294 18 080 44,778 .ociR otroP 15 15 .aksalA 1 1 12 1 13 .iiawaH 5 5 3 3 108 108 .ocsicnarF naS 255 590 845 1,052 1,052 5,815 701 17,250 63 23,829 .notgnihsaW 21 1 22 1 1 108 2 47 157 .olaffuB 5 2 7 9 9 11 11 67 69 244 19 8 407 .atokaD 1 12 13 -uS dna htuluD .roirep 1 1 2 1 1 4 1 2 2 2 7 .nagihciM 12 3 15 dna anatnoM .ohadI ===== 1 1 .ecnerwaL .tS 1 2 3 5 5 39 39 1 1 517 21 5 1,020 1,423 2,986 .tnomreV 9 750 759 .latoT 21 255 526 844 2 1,648 5 3,529 255 3,789 17 1,686 39 1,742 1 257 5 1 264 189 7,160 5,200 1,443 39,519 19,579 73,090 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

434 FEDERAL RESERVE BULLETIN". AUGUST 1, 191ft. EARNINGS ON INVESTMENTS OF FEDERAL RESERVE BANKS. Average amounts of earning assets held by each Federal Reserve Bank during June, 1916, earnings from each class of earning assets, and annual rates of earnings on the basis of June, 1916, returns. Average balances for the month of the several classes of earning assets- B m c i o l e l u m s n r b t e e e d d r i s , s . - Bi m i ll n s a o r b 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 n ta n i t t d e e s s d . Total. Boston $11,236,833 $2,752,346 $3,332,000 $17,629,712 New York 409,789 20,681,672 5,651,520 5,014,317 3L757,29& Philadelphia.. 547,013 9,610,755 2,962,296 4,000,000 17,120,064 Cleveland 277,443 4,400,823 4,509,667 6,614,333 15,802,266- Richmond 5,287,134 803, 753 60,406 2,061,000 8,212,293 Atlanta 2,790,231 1,579,205 2,034,000 6,403,436* Chicago.. 1,974,229 3,690,197 3,474,576 9,753,033 18,892,035 St. Louis 649,804 3,389,110 952,572 3,339,000 8,330,486 Minneapolis.. 881,100 1,724,000 1,408,000 3,812,300 7,825,400' Kansas City... 1,837,618 1,161,459 549,625 10,203,250 13,751,952 Dallas 5,129,389 2,988,250 8,117,639 San Francisco. 422,000 5,125,000 1,895,000 3,608,000 11,050,000- Total... 20,514,283 63,402,807 24,216,008 56,759,483 164, 892,581 Earnings from— Calculated annual rate of earnings from— B m c i o U e u m s n b r t e e e d d rs i , s . - b m ou o B a g p r i e h l k l n t e s t i . n M wa u r n r i a c n ip ts a . l U b S o n ta n i t t d e e s s d . Total. m co r e B e u m d n il b i t l s e s e - d rs , . m i b n o B a o u r il p k g l e h e s n t t . p M r a a u l n n w t i s c a . i r - - U b S o n ta n i t t d e e s s d . v A o e ti s p o l t e l m n r i a s n e . - - nt, Per cent. Per cent. Per cent. Per cent. Per cent. Boston $910.94 $19,039.60 $5,884.82 $5,907.86 $31,743.22 3.60 2.07 2.61 2.16 2.20 New York 1,348,98 37,034.13 11,473.69 10,897.83 60,754.63 4.00 2.18 2.44 2.61 2.33 Philadelphia.. 1,645.88 16, 580.97 5,889.06 7,347.90 31,463.81 3.67 2.10 2.42 2.24 2.24 Cleveland 1, 005. 84 7,418.37 10,348.92 13,120.30 31,893.43 4.4.2 2.06 2.90 2.38 2.4& Richmond 17,924.71 2,011.22 150.90 4,155.25 24,242.08 4.14 3.05 3.05 2.46 3.60< Atlanta 9,216. 89 3,020. 78 3,731.85 15,969.52 4.03 2.33 2.24 3.04 Chicago ... 7,569. 47 6,474.38 7,296.79 19,032.62 40,373.26 4.68 •2.14 2.56 2.38 2.61 St. Louis 2,362. 51 5, 770.80 2,017.93 6,084. 43 16,235.67 4.44 2.08 2.51 2.22 2.38 Minneapolis.. 3,393. 51 2,812.95 3,009.27 7,207.18 16,422.91 4.70 1.99 2.61 2.31 2.5fr Kansas City.. 7,480. 75 2,008.08 1,106.19 17,973.12 28,568.14 4.96 2.10 .2.45 2.14 2.53 Dallas 18,639.33 4,951.02 23,590.35 4. 43 2.02 3.55* San Francisco 1, 767. 43 8,997. 59 3, 723.28 6,014.58 20, 502.88 5.11 2.14 2.40 2.03 2.36 Total... 73,266.24 111, 168.87 50, 800.85 106,423.94 341,659.90 4.36 2.14 2. 56. 2.29 2.5a Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

INTERDISTRICT MOVEMENT OF FEDERAL RESERVE NOTES, JANUARY i TO JUNE 30, 1916. •Boston. New York. Philadelphia. Cleveland. Richmond. Atlanta. Received Returned Received Returned Received Returned Received Returned Received Returned Received Returned from. to. from. to. from. to. from. to. from. to. from. to. Boston $1,368,000 $626,500 $83,000 $62,380 $67,000 $4,985 $93,000 $7,340 $46,000 $12,215 New York $634,850 $1,339,000 876,480 1,592,500 482,260 147,960 2,288,120 134,420 1,754,130 214,640 Philadelphia 62,380 83,000 : i,* 608; 500 "'866J566' 107,280 19,635 302,715 33,205 105,620 16,115 Cleveland : 4,985 67,000 147,960 472,500 19,635 107,280 25,245 15,095 10,925 30,520 Richmond 7,340 93,000 134,420 2,262,150 33,205 315,190 15,095 25.245 91,360 241,070 Atlanta 12,215 46,000 214,640 1, 746, 710 16,115 105,620 30,520 10^25 241,070 91,360 Chicago 36,500 9,000 778,500 76,450 55,000 8,970 253,000 8,805 165,000 410 277,000 6,090 St. Louis 6,150 10,000 113,220 205,800 7,205 12,175 34,135 6,010 30,840 3,535 244,240 32,890 Minneapolis 4,440 28,000 73,155 316, 600 4,140 23, 690 16,935 13,410 9,200 3,675 11,940 13,795 Kansas City l',785 20,000 18,185 357,000 1,550 19,910 6,240 10,920 5,610 4,480 10,785 27,015 Dallas 2,210 33,000 36,770 695,250 2,505 37,280 7,015 10,515 10,820 9,095 125,495 550,890 San Francisco 7,875 15,000 67,705 4S5,400 3,745 15,480 9,795 3,085 11,215 1,195 12,415 7,390 Total.. 780,730 1,743,000 j 4,561,055 8,110,860 1,102,580 2,300,475 1,029,275 261,495 3,182,835 303,810 2,689,910 1,152,630 Chicago. St. Louis. Minneapolis. Kansas City. Dallas. San Francisco. Total. Received Returned Received Returned Received Returned Received Returned Received Returned Received Returned Received Returned from. to. from. to. from. to. from. to. from. to. from. to. from. to. Boston , $9,000 $36,500 $10,000 $6,150 $28/000 $4,440 $20,000 $1,685 $33,000 $1,995 $15,000 $7,875 $1,772,000 $772,065 New York 79,710 778,500 210,690 113,220 316, 600 73,155 358,800 17,185 698,900 34, 770 465,440 67,705 8,165,980 4,513,055 Philadelphia.. 8,970 55,000 12,175 7,205 23, 690 4,140 18,910 1,550 37,280 2,335 15,480 3,745 2,303,000 1,092,430 Cleveland 8,805 253,000 6,010 34,135 13,410 16,935 10,920 6,240 10,515 6,625 2,040 9,795 260,450 1,019,125 Richmond 410 165,000 3,535 30,840 3,675 9,200 4,480 5,610 9,095 9,510 1,195 11,215 303,810 3,168,030 w Atlanta 6,090 277,000 32,890 244,240 13,795 11.940 27,015 10,785 508,500 109,995 7,390 12,415 1,110,240 2,666,990 d Chicago 230,500 28,750 1,020,500 29', 380 698,500 2,895 478,500 3,260 177,500 4,480 4,170,500 178,490 St. Louis 28,750 230,500 64,070 11,290 568,355 31,815 617,665 51,930 16, 525 5,350 1,731,155 601,295 IT1 Minneapolis 29,380 1,020,500 11,290 64,070 48,530 21,325 25,565 10,640 72,500 29,775 307,075 1,545,480 fed Kansas City.... 2,895 698,500 31,815 568,355 21,325 52,030 68,510 107,965 6,930 23.520 175,630 1,889,695 Dallas 3,260 478,500 53,920 617,665 10,640 25,565 112,965 68,430 5,990 26,210 371,590 2,552,400 San Francisco.. 4,480 177,500 5,350 16,525 29,775 72,500 23,520 6,930 27,210 5,670 203,085 806,675 Total 181,750 4,170,500 608,175 | 1,731,155 1,545,480 310,575 1,891,995 174,450 2,514, 740 344,695 785,990 202,085 20,874,515 20,805,730 OO Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

INDEX. Page. Page. Acceptances, distribution of, by sizes, maturities, Federal Reserve notes, interdistrict movement of.. 435 etc 423-424 Form for use in making applications under Kern Announcement by Board 374 amendment to Clayton Act 391 Bill limiting use of words '' Federal" and '' reserve ". 373 Gold imports and exports 430-433 Branch bank at Petrograd, Russia, permission Gold settlement fund 380-383 granted to National City Bank of New York to Hearing of Wisconsin Banks 372 open 372 Informal rulings of the Board: Brokers' paper, suggestions for purchase of 375 Membership of State banks and trust companies 393 Business conditions throughout the 12 Federal Notes payable "on or before" 394 Reserve districts 399-417 Clayton Act interpretations 394 Checks, use of, in France 374 Notes for farm implements 395 Circular regarding section 8 of Clayton Act 389-392 Cattle paper 395 Clearing system, comments on 377 Interdistrict movement of Federal Reserve notes.. 435 Commercial failures in June 377 Law department: Depositors in national banks, increase in number of. 376 Provisos to Clayton Act cumulative 396 Discount rates in effect 383 Member bank acceptances 397 Discounts, distribution of 418-422 Member banks granted authority to accept up to 100 Dividends of Federal Reserve Banks 373 per cent 372 Earnings of Federal Reserve Banks 373 Meredith, E. T., class C director of Chicago Federal Earnings and expenses of Federal Reserve Banks, Reserve Bank, resignation of 372 six months ending June 30 384-388 National-bank charters issued 379 Earnings on investments of Federal Reserve Banks. 434 National-bank deposits in the United States 376 "Federal" and "reserve," bill limiting use of Purchase of brokers' paper, suggestions for 375 words 373 Resources and liabilities of Federal Reserve Banks. 426-427 Federal Reserve Agents' accounts, statement of 429 State banks admitted to system 372 Federal Reserve Bank statements 426-427 Summary of business conditions 398 Federal Reserve notes, circulation of 428 Work of Board 371, 372 O Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis