Federal Reserve Bulletin, 1916-11

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

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

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

TABLE OF CONTENTS. Page. Review of the month 587 Growth of the acceptance business 590 European payments to the United States since beginning of war 592 Earnings and expenses of Federal Reserve Banks for past 9 months 593 Decision in the Wisconsin bank appeal 596 Memorandum of Board relative to election of Class A and B directors 597 Date for payment of reserves 597 Operation of the clearing plan 598 New national bank charters 600 Commercial failures during September. 601 Fiduciary powers granted 601 Applications under Kern amendment to Clayton Act, number of, granted and refused 602 Renewal of mortgage loans 602 Gold settlement fund ............. 603 Informal rulings of the Board ............ 606 Law department 608 Summary of business conditions 612 Business conditions throughout the 12 Federal Reserve districts 613 Distribution of discounted paper ^ 639 Distribution of acceptances .... ....... ... 644 Conversion of 2 per cent United States bonds during 1916 647 Federal Reserve Bank statements 650 Gold imports and exports 654 Earnings on investments of Federal Reserve Banks 656 Discount rates in effect 656 Interdistrict movement of Federal Reserve notes 657 Comparative statement of leading central banks of issue, 1914 and 1916. 65& Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FEDERAL RESERVE BULLETIN VOL. 2 NOVEMBER 1, 1916 No. 11 REVIEW OF THE MONTH. They must, therefore, in view of. possible calls upon them, keep in mind some limitation of Continuation of the high export movement their investments in paper which is not in the and of the net inward shipment of gold during highest sense self-liquidating, or is not of an intrinsically liquid character however secure and the month of October, with extended activity however certain its ultimate payment; and in domestic trade, rising prices, easy money while the member banks have entire freedom of rates and full employment of labor practically discretion as to transactions in which they may the country over, have been the outstanding lawfully engage and as to investments which features of the business and financial situation they may legally make, they should not forget that there are certain kinds of paper which will during the month. The heavy balances due always be preferred by Federal Reserve Banks from Europe have given rise to demands for over other forms of credit, and which can be new financing. One feature of this new financ- negotiated at lower rates. ing is noted as of especial interest and concern The Federal Reserve Act distinguishes to the operation of the Federal Reserve system clearly between commercial banking and investment banking, and specifically excludes and its member banks. It is the extensive refrom purchase or discount "notes, drafts, or sort to the use of acceptance credits arranged bills covering purely investments, or issued or or to be arranged "on behalf of industrial and drawn for the purpose of carrying or trading commercial borrowers in Europe. In this con- in stocks, bonds, or other investment securinection the substance of remarks made by ties, except bonds or notes of the Government of the United States." The Act does not Gov. Harding * are here given. permit member banks to accept drafts based Mr. Harding noted that although a large vol- upon either foreign or domestic transactions ume of acceptances have been already pur- for a period exceeding 6 months. It is clear chased under the regulations issued by the that the intent of the Act is to safeguard the self-liquidating character of acceptances, as Board, securities of an investment nature are barred, it must be remembered that the regulatians and provision is made that the transactions of the Board are necessarily broad in their should be based upon either an actual sale of scope, and not intended to deal with specific goods or upon the conveyance of legal title to cases. They are intended to be permissive goods which can be readily marketed so as to within the limitations defined, but the extent protect the acceptor. to which any Federal Reserve Bank should The Board was obliged to face, soon after invest in any class of "eligible" paper is a questhe establishment of the Federal Reserve tion to be determined as a matter of policy, in Banks, the question of renewals of acceptance accordance with the changing position and recredits., and ruled that certain renewals of quirements of the Federal Reserve system as a such credits, which clearly grew out of the whole. While, therefore, the banks have been shipment of goods in the first instance, need and doubtless expect to continue to. be liberal not, as a matter of principle, be excluded. purchasers of acceptances, the directors of American acceptances now are quite well these banks are charged under the law to "adestablished in the world's market, and while minister the affairs of said banks fairly and imwe may expect to see this acceptance business partially and without discrimination in favor of grow into very large figures, we must not peror against any member bank or banks, and mit either our ambition or our desire to assist shall, subject to the provisions of law and the others, or considerations of profit, to cause us orders of the Federal Reserve Board, extend to to disregard long-established and sound bankeach member bank such discounts, advanceing principles. A foreign draft based origiments, and accommodations as may be safely nally upon importation of goods from this and reasonably made, with due regard for the country and drawn upon an American banker, claims and demands of other member banks." with a definite agreement on the part of the * Before New York Chapter, American Institute of Banking, Nov. 1. domestic banker for several renewals, at a© 587 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

588 FEDERAL RESERVE BULLETIN. NOVEMBER 1,1916. Interest rate fixed for the entire period cov- demands and American foreign trade during ered by the renewals, does not give the chief the coming year or more. advantage which should accrue to the banks of Consideration and final disposal of appeals a country granting foreign acceptance credits, because, no matter to what point the Federal under the Clayton Act, which became effective Reserve Bank might raise the discount rate, on October 15, has occupied a considerable it would have no effect upon the foreign part of the attention of the Federal Reserve debtor, for no increase in rates would move Board during the month of October. All him to cover his acceptance and seek accompending appeals have been disposed of and modation in his own country. It is entirely natural and proper that countries or sections notice conveyed to the individuals and banks where wealth has accumulated, and which have affected by the Board's previous orders. In large holdings of gold, should afford credit all, 1,195 appeals have been granted and 140 facilities to their neighbors; but the discount declined. In a few cases where doubt existed market, which is intended to deal with shortthe Board has granted temporary permission term and commercial borrowings, should not be used or abused so as to serve as an adjunct to continue directorates as at present up to of the investment market. January 1, 1917, with the understanding that To the present date the slackening or re- further hearings and investigations shall be versal of the gold movement as to which so had in the meantime with a view to determinmany predictions are currently made has ing definitely what action shall be taken with shown no indication of developing. Statistics respect to the cases thus held open. Inasmuch compiled from official sources show that to as the operation of the Clayton Act was in large the middle of October the net inward move- part automatic, individuals withdrawing from ment of gold since January 1 was approxi- directorates retention of which would be in mately $294,000,000, whereas the total net violation of the Act, a mere analysis of the inward movement for the corresponding period Board's action does not afford an adequate of the year 1915 was only about $260,000,000. idea of the actual operation of the law. Prob- The only symptom of a change in the inter- ably in a majority of cases the changes resultnational position of the United States as ing from the law have been brought about respects gold is found in an increase of the without any appeal to the Board. gross exportation of the metal from the be- Section 8 of the Clayton Act prohibits private ginning of the year to the middle of October, bankers under certain conditions from serving bringing the total outflow to about $95,000,000, as officers or directors of member banks. as compared with only about $13,000,000 A number of inquiries have been received during the corresponding period a year ago. during the summer as to the Board's interpre- While there is thus no net slackening in the tation of the term uprivate banker" as there inward movement of gold, but rather a decided used. As the Board is required, under the proviincrease, the general conditions have been such sions of the Act, to prosecute those violating as to encourage some of the strongest banking its terms, it has been necessary that the Board institutions in the United States in the policy make clear its interpretation of the language of protecting themselves by accumulating short- used in order that the banks may comply term commercial bills and obligations put out in with the letter and spirit of the Act, and it foreign countries, thereby providing themselves has accordingly done so, announcing its deciwith means of meeting sudden demands. This is sion in the matter on October 6. one phase of the general policy of maintaining The purpose of the Act, as its title implies, banking assets in strictly liquid condition, was to prevent unlawful restraints and monopowhich has been a cardinal idea with the Board lies. It is obvious, therefore, that Congress ever since its inauguration, and which must intended to prohibit common control of membe rigidly adhered to in view of the inability ber banks and of private bankers engaged in to foresee the direction to be taken by European the same activities as member banks, and that Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

NOVEMBER 1,1916. .FEDERAL RESERVE BULLETIN. 589 it intended to preserve competition in cities 30, as against 7.2 per cent for August of the of more than 200,000 inhabitants between present year. Aggregate earnings were $478,member banks, private bankers, and other 748 and total current expenses $203,144, leavincorporated banks, and likewise intended to ing $275,604 as the net earnings of the system preserve competition between member banks, for the month. The banks' expenses are exregardless of their location, and State banks, clusive of $57,344, the expenses of the transit trust companies, or private bankers having departments, which are covered through servaggregate resources of more than $5,000,000. ice charges made to depositing member banks In this view the Board has interpreted the and other Federal Reserve Banks. Six banks term "private banker" to include partnerships earned net in excess of 6 per cent on their paidor individuals who are engaged in the banking in capital, while six banks earned less than business, as that term is generally understood, 6 but in excess of 4 per cent. including those partnerships and individuals A total of $30,000,000 of 2 per cent bonds who solicit or receive deposits subject to check, of the United States has been converted durwho do a foreign exchange, acceptance, loan, ing the present year into $15,761,000 of 30-year or discount business, or who purchase and sell 3 per cent bonds and $14,239,000 of 1-year 3 and distribute issues of securities by which per cent Treasury notes. The total given repcapital is furnished for business or public resents the full amount available for conversion enterprises. under section 18 of the Federal Reserve Act. The term " private banker." is thus inter-* Conversion operations were conducted by the preted not to include the ordinary stock, note, or Treasury on April 1, when a total of $10,290,600 commodity broker, unless a substantial propor- was converted; on July 1, when a total of tion of his profits are derived from, or a sub- $9,574,200 was converted; and on October 1, stantial part of his business consists in, one or when the available balance of $10,135,200 was more of the banking activities described, while converted. Not all the Federal Reserve Banks it is not interpreted to include partnerships or applied for the conversion of their allotted individuals using only their own funds in making quota of bonds. The difference between the loans or investments. full allotments and the amounts applied for No private banker whose partnership or were distributed among those Federal Reserve firm assets aggregate more than $5,000,000 is Banks which desired to convert bonds in eligible, under the terms of the Clayton Act, excess of their allotment. to serve as a director of any member bank, and The application of Wisconsin bankers for no private banker, regardless of the amount of permission to transfer from the Minneapolis to partnership or firm assets, is eligible to serve the Chicago district has been granted in so far as a director, other officer, or employee of any as relates to Wisconsin, northern Michigan remember bank located in a city of more than maining as heretofore. This action disposes of 200,000 inhabitants, if such firm or partner- the only appeals now pending before the Board ship is located in the same city. for redistricting. The transfer order becomes The Kern amendment to the Clayton Act effective on January 1, 1917, and results in does not authorize the Federal Reserve Board shifting 52 banks with a total capital and surto grant permission to such private bankers to plus of about $7,632,900 to the Chicago disserve as officers or directors of a member bank trict, thus making the total subscribed capital even though it appears that they are not in of the Chicago district $13,806,000, while that substantial competition with such member bank. of Minneapolis is reduced to $4,736,000. Net earnings of the Federal Reserve Banks Expansion and extension of the clearing during September were almost exactly 6 per system has gone on during the month with very cent on their aggregate paid-in capital of $55 satisfactory results. Continuous gains in the r 381,000, the amount reported for September daily number of items and amounts cleared are Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

590 FEDERAL EESEEVE BULLETIN. NOVEMBER 1,1916. indicated by the reports of clearing operations Growth of the Acceptance Business. received from the Federal Reserve Banks for The growth of the acceptance business of the the period September 16 to October 15, 1916, national banks appears from the following exthe third month during which the new clearing hibit, which shows the aggregate liabilities on system has been in operation. drafts accepted by national banks in New The average number of items handled was in York, Boston, Philadelphia, Baltimore, and excess of 200,000 and shows an increase of 54San Francisco, and by all national banks per cent over the total handled during the first since September 2, 1915, when, for the first month and of 15 per cent over the number time, information regarding this new class of handled during the second month. The daily business was reported by national banks: average amount cleared by the banks was not Drafts based on imports and exports accepted by national much below 100 millions, and shows an increase banks. of about 65 per cent over the first month's total [In thousands of dollars.] and of about 25 per cent over the second mo A n s t h t ' h s e t o re ta s l u . lt of the larger number of items Y N o ew rk - . B to o n s . - P p d h h e i i l l - a a . - m Ba o l r t e i . - F ci r s a c n o - . Other. Total. handled and the greater experience gained in Sept. 2,1915 6,9.03 3,449 965 135 1,625 13,077 the operation of the system, the cost per item Nov. 10,1915 16,182 5,189 1,973 527 343 2,594 26,808 Dec. 31,1915 17,501 7,374 2,809 1,063 492 2,746 31,985 handled is constantly decreasing. Some of the Mar. 7,1916 21,429 10,878 5,751 895 1,095 2,629 42,677 May 1,1916 33,055 13,056 6,217 2,096 2,221 3,191 59,836 banks, accordingly, have been able to reduce the June 30,1916 40,852 14,858 5,234 788 2,673 4,898 69,303 Sept. 12,1916 44,229 18,057 5,084 1,616 2,484 6,409 77,879 service charge per item from 1J to 1J cents. A number of important clearing houses have In addition to the acceptance business reinformed the Board of their intention to introported by the national banks, the large trust duce changes in their rules in order to bring companies in the eastern seaboard cities, since about closer cooperation and harmony in the accepting was authorized by State laws, have work of the Federal Reserve Banks under the been engaging in the new business. On June 30, clearing regulation as at present applied. This, 1916, the following New York City trust comwith the increase in the number of items panies report acceptance liabilities of the handled at the several banks, affords satisfacfollowing amounts: tory evidence of the gradual growth of the clearing and collection system in public favor. Bankers Trust Co ^ .. $9, 333, 800 Several Federal Reserve Banks have devel- Guaranty Trust'Co 31,083, 700 Columbia Trust Co 1,007,100 oped plans of group insurance for their em- Broadway Trust Co . 1, 054, 300 ployees, a blanket policy covering each such Central Trust Co 1,000,000 employee up to the amount of his annual Equitable Trust Co.. 6, 930, 800 salary, not to exceed a specified figure, having Farmers Loan & Trust Co.... 4,728,800 been obtained from reliable insurance compa- Total New York trust companies 55,138, 500 nies. The Board has approved such plans in Corn Exchange Bank 1, 538,100 the case of three banks, and is developing a Total •. 56,676,600 similar plan for insurance of its own employees. It is probable that the aggregate of drafts The policies are in force only during the period in the foreign trade accepted by American for which the employee in question holds office. banks and bankers is at present not much be- Discount rates during the month have low 175 millions, of which about 100 millions remained practically stable, no changes of represent the share of the New York banks. importance having been introduced at any of A considerable portion of these acceptances the banks. has been bought by the Federal Reserve Banks The Bank of Iota, La., has been admitted to at rates as low as 2 per cent, compared with membership in the Federal Reserve system. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

NOVEMBER 1,1916. FEDERAL RESERVE BULLETIN. 591 rates in excess of 5 per cent ruling in the in competition with European houses. It London market. (See Table A.) The total may be further expected that the opening of of acceptances held on October 20 by Federal foreign branches of strong American banks, Reserve Banks-—83 million dollars—consti- in combination with dollar exchange, will tutes 43.5 per cent of their aggregate earning before long free American commerce from assets, as against 11.3 per cent represented dependence on foreign bankers and make by paper rediscounte'd for member banks. unnecessary to a large extent foreign aid and As may be seen from the attached Table B intervention in the settlement of our foreign the Federal Reserve Banks began the pur- trade balances. chase of acceptances based upon imports and exports at the end of February, 1915. During TABLE A.—Rates for 3 months' bank bills in London and New York on dates specified. the year 1915 the largest amount invested in this class of paper was in the neighborhood Date. London. New York. of 18 millions. The present year witnesses 1915. the steady growth of this class of investments Jan. 27... Feb. 24 from 23.8 millions in the beginning of the Mar.31 Apr.28 year to 78.6 millions in the beginning of Sep- May 26 June 30... tember. The largest holdings—over 85 mil-July 28 Aug.25 lions—were recorded at about the end of July. Sept. 29 Oct. 27 The amount of acceptances bought by Fed- Nov. 24 eral Reserve Banks up to October 1 is nearly Dec. 29 1916. 300 million dollars, the monthly purchases for Jan. 28 Feb. 25 the past quarter averaging about 35 million Mar.31 Apr.28 dollars. It is clear that the rapid growth May 26 June 30 of the American acceptance business is due July 28.. Aug. 25. . 4i to 5-A largely to the fact that the Federal Reserve Sept. 29 5£ to5g Banks have provided a market for the purchase and sale of acceptances. From the attached TABLE B.—Acceptances held by the Federal Reserve Banks Tabie B it may further be seen that, for as shown by schedules on file on dates specified. the present year at least, the increase in the [In thousands of dollars.] amount of non-member bank acceptances held Non- Trade by the Federal Reserve Banks has been greater Dates. Member member accept- Total. banks. banks. ances. than in the amount oi member bank acceptances so held. 1915. February 22.. 93 There can be but little doubt that the law March 31 3,075 7,831 10,906 April 5....... 3,653 7,940 11,593 permitting national banks to accept drafts May3 5,038 8,309 13,347 June 7 5,242 4,718 9,960 based upon foreign-trade transactions has been July 3 4,342 5,428 9,770 August 2 5,350 5,779 11,129 a most helpful factor in the recent move- September 6.. 6,087 6,797 12,884 October 4 9,000 5,373 14,373 ment of our foreign trade. Dollar accept- November 1.. 8,477 4,788 13,265 December 6.. 12,311 5,843 18,154 ances are now becoming known in almost all parts of the world, and are bound to prove January 3. 1916. 15,494 8,344 23,838 a most powerful instrument in promoting and February 7... 15,681 25,838 March 6 17,182 10,859 462 28,503 facilitating the commercial relations between April3 21,000 17,308 722 39,030 Mayl 24,875 19,415 1,477 45,767 this country and our foreign markets, where June 5 24,680 24,680 2,208 51,568 July 3 32,989 31,222 3,422 67,633 commercial credit has to be extended by August 7 39,695 33,738 4,225 77,658 September 4. 41,413 33,573 3,673 78,659 our exporters desirous to enter these markets October 2 37,798 32,438 2,306 72,542 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

592 FEDERAL RESERVE BULLETIN. NOVEMBER 1,1916. TABLE C—Imports and exports into and from the United The amount of American securities returned States during fiscal years 1912 to 1916, inclusive, by large by Europe can only be estimated very roughly, geographic divisions. but indication of the extent of the movement [In millions of dollars.] may be had from the estimate prepared by IMPORTS. Mr. L. F. Loree, president of the Delaware & Hudson Co., who places the amount of railroad Asia Ye J a u r n e e n 3 d 0— ing Europe. A N me o r r ic th a. Am So er u ic th a. Oc a e n an d ia. Africa. Total. securities returned between January 31, 1915, and July 31, 1916, at almost $1,300,000,000. 1912 . . 819.6 334.1 215.1 261.9 22.6 1,653.3 Figures have also been published showing the 1913 892.9 362.0 217.7 314.0 26.4 1,813.0 1914 895.6 427.4 222.7 329.1 19.1 1,893.9 return of 748,547 shares of United States Steel 1915 614.3 473.1 261.5 300.3 25.0 1,674.2 1916 616.2 591.9 391.6 533.4 64.8 2,197.9 Corporation common stock between March 31, 1914, and September 30, 1916, and of 141,736 EXPORTS. shares of preferred stock of the same company between June 30,1914, and September 30, 1916. 1912 .. 1,341.7 516.8 132.3 . 189.4 24.1 2,204.3 1913 1,479.1 617.4 146.1 194.2 29.1 2,465.9 At market price of June 30, 1914, this stock 1914 ...... . 1,486.5 528.6 124.5 197.0 27.9 2,364.5 1915 1,971.4 477.1 99.3 192.2 28.5 2,768.5 would have represented a value of over 1916. 2,999.2 732.9 180.3 377.7 43.5 4,333.6 $60,000,000, while at the market price of September 30, 1916, its value would be over European Payments to the United States. $100,000,000. During the two fiscal years ending June 30, Even more striking, because of the indication 1916, which cover most of the period since the they give of the altered position of the United outbreak of the European war, the United States in international finance, are figures show- States exported merchandise to the amount of ing the amount of foreign loans and credits over $7,000,000,000, and imported less than arranged in the United States. The obliga- $3,900,000,000, an excess of exports of over tions of foreign governments, bankers, and $3,100,000,000, to which should also be added merchants now held here are estimated to further shipments made since June 30, the amount to $1,931,000,000, distributed as follows: amounts of which are not yet available. To British America .. $212,000,000 pay for this large quantity of goods European Europe 1,627,000,000 and other countries have been obliged to send Latin America .. 88, 000, 000 us gold, American securities, and also to estab- China 4,000,000 lish credits here by floating heavy issues of Much interest is now centered on the quesbonds. The Federal Reserve Board's station of how the United States will meet tistical division has recently prepared some foreign demands for gold should such demands estimates of the magnitude of these various arise after the close of the European war, and operations, and while many of the figures obin this connection the maturities of the Eurotained are necessarily only approximate, it is pean obligations held here are of distinct believed that they are of sufficient interest to importance. justify publication. Maturities of European obligations held in the United Gold exports and imports, Aug. 1,1914, to Oct. 13 > 1916. States: 1916 $30, 000, 000 [In thousands of dollars.] 1917. 103,000, 000 1918 260,000, 000 Exports. Imports. Net Net 1919................................. 300, 000, 000 exports. imports. 1920. 500, 000, 000 1921. 200,000, 000 Aug. 1 to Dec. 31, 1914 104,972 23,252 81,720 Jan. 1 to Dec. 31,1915 30,889 450,211 419,322 1923...; 5, 000, 000 Jan. 1 to Oct. 13,1916 95,961 390,010 294,049 Information lacking 229, 000, 000 Total 231,822 863,473 631,651 Total 1,627,000,000 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

NOVEMBER 1,1916. FEDERAL RESERVE BULLETIN. 593 EARNINGS AND EXPENSES OF THE of the 3 southern banks, and less than 4 per FEDERAL RESERVE BANKS. cent of the aggregate earnings of the 4 eastern banks. In the case of the 4 banks in the Total earnings of the Federal Reserve Banks north and middle west, this proportion is about for the 9 months ending September 30, 1916, 23 per cent, while San Francisco's earnings were $3,242,336.1-8, while total current exfrom discounts were about 10 per cent of the penses for the same period were $1,845,077.62. bank's total earnings for the 9-month period. Of this total $130,754.54 represents the ex- Over one-half of the total earnings of the 3 penses incurred on account of the banks: tranbanks on the eastern seaboard was derived sit departments between July 15 and the end from acceptances, while over 40 per cent of the of September. This amount is returned to the aggregate earnings of the Chicago and Kansas Federal Reserve Banks through service charges City banks came from United States securities. assessed against member banks. Nearly 28 per cent of the total earnings of the Net earnings of the banks—i. e., total earn- New York Federal Reserve Bank came from ings minus the current expenses of the banks warrants, Cleveland, Chicago, Boston, and proper—were $1,528,013.10, or at the rate of Philadelphia likewise reporting considerable 3.7 per cent on an average paid-in capital of amounts earned from this source. $55,002,000. All the banks earned in excess Of the total expenses of operation for the 9 of their current expenses for the 9 months of months, about 27 per cent went as compensathe present year, 4 banks in excess of 5 per tion to bank officers, and a slightly smaller procent, and 6 banks in excess of 4 per cent. portion as salaries to the clerical staff of the Current expenses shown include $1,375,518.banks. The latter item shows a large increase 72, the operating expenses of the banks proper; for the third quarter, due no doubt to the in- $151,308.27, the cost including amortization of crease of force made necessary by the installa- Federal Reserve notes issued, returned, and retion of the new clearing system. The aggregate tired; $4,810.94, the cost of Federal Reserve amount paid during the 9 months by the banks bank notes; $228,861.-22, amortization of orfor the support of the Federal Reserve Board ganization expenses; and $84,578.47, aggregate was $151,024.96, or over 10 per cent of the total depreciation charges for the 9-month period. expenses of operation of the banks. Rent for Combined gross earnings for the third quarthe 9 months' period totaled $120,543.34, or ter of the present year were about one-third in about 9 per cent of the total operating expenses, excess of the total earnings for the second quarwhile other large specified .items in the order of ter, the latter exceeding by about 40 per cent their importance were postage, printing and the total earnings for the first quarter of the stationery, and directors' fees. The total curpresent year. rent expenses stated above are exclusive of Of the total earnings for the 9 months, 24 $131,939.89 expended for additional furniture per cent was from bills discounted for member and equipment, and of $121,229.34 paid for the banks; 24 per cent from United States bonds and printing and shipping of Federal Reserve notes. notes; 28 per cent from bills bought in the open About 44 per cent of the latter expenditure is market; and 17 per cent from municipal warreported by the New York Federal Reserve rants. The remainder, about 7 per cent, rep- Bank. resents commissions earned on acceptances and warrants bought for other Federal Reserve The expenses of the transit departments, Banks, profits from exchange operations and partly estimated, are composed largely of operfrom the sale of United States bonds, and other ating expenses proper, and to a smaller extent smaller earnings. of depreciation charges on account of furniture These percentages vary by banks and groups and equipment assigned to the new departments, of banks. Thus, earnings from discounts con- on or about July 15 or purchased for the use stituted over 75 per cent of the total earnings of these departments since that date. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Earnings and Expenses of each Federal Reserve Bank and of the system as a whole for the nine months ending Sept. 30, 1916. CO EARNINGS. Atlanta Boston. New York. d P el h p i h la i - a. Cleveland. Richmond. (i O n N c r l l e u e w a d n in s g Chicago. St. Louis. M ap i o n l n i e s. - K C a i n t s y a . s Dallas. Sa c n i s F co ra . n- Total. branch). Bills discounted—members.. $16,632.06 $12,202.43 $12,092.76 $11,738.54 $181,809.47 $112,298.69 $88,542.16 $26,885,90 $41,771.47 $73,700.99 $177,359.57 $17,231.75 $772,265.79 Bills bought in open market.. 162,030.53 322,041.87 118,028.14 58,800.45 13,791.87 20,047.51 56,623.04 44,981.96 25,768.65 14,111.74 3,052.94 66,795.22 906,073.92 Investments: U. S. bonds and notes... 40,154.56 66,219.50 61,980.31 99,094.45 27,788.49 25,697.99 146,458.81 50,543.78 49,462.29 128,577.69 39,950.50 50,188.95 786,117.32 Warrants ... . . 60,781.81 172,236.66 54,160.42 85,970.80 2,948.48 1,963.29 70,150.50 23,798.16 25,471.78 11,359.99 189.01 35,046.94 544,077.84 Commissions received 6,798.34 29,051.68 17.58 35,867.60 Profits on United States securities sold 3,500.00 15,973.84 16,725.00 3,575.00 10,200.00 49,973.84 Amortization of appreciation' on United States bonds.. 17,873.14 25,661.79 43,534.93 Sundry profits 3,095.99 974.81 3,267.49 203.22 4,620.68 10,284.32 43,057.83 18,782.94 9,645.50 636.28 5,516.97 4,338.91 104,424.94 Total earnings 292,993.29 618,700.79 266,254.12 255,807.46 234,533.99 170,309.38 415,032.34 182,865.88 152,119.69 254,048.48 226,068.99 173,601.77 3,242,336.18 CURRENT EXPENSES. > Expenses of operation: Assessment account expenses FederalReserve Board $14,009.94 $30,569.90 $14,450.39 $16,350.76 $9,225.55 $6,695.41 $18,318.81 $7,657.31 $7,031.09 $8,325.12 $7,555.02 $10,835.66 $151,024.96 Federal Advisory Council (fees and traveling expenses) 303.50 512.50 226.50 381.43 150.00 176.34 622.60 150.00 559.00 285.85 150.00 150.00 3,667.72 Governors' conferences (incl. traveling expenses) 671.01 2,706.19 596.14 1,086.73 l?207.61 856.55 843.23 1,207.79 1,126.70 1,065.99 965.88 2,224.04 14,557.86 Federal Reserve Agents conferences, incl. travel- c! ing expenses 170.44 425.49 158.63 333.85 162.04 92.60 121.70 195.71 222.29 240.98 425.00 489.41 3,038.14 Salaries: Bank officers 25.124.85 66,649.74 29,050.00 29,062.50 23,528.02 23,706.63 38,750.00 35,024.00 19,749.94 19,097.89 25,207.09 30,034.84 364,985.50 Clerical staff 23,507.38 72,928.67 30,953.43 24,786.31 24,062.21 27,843.00 42,159.07 26,890.17 18,237.58 28,317.65 24,036.71 20,224.05 363,946.23 Special officers and watchmen 5,822.50 4,497.07 340.00 453.33 2,438.50 4,106.16 1,215.00 962.45 535.00 1,365.62 93.00 21,828.63 Allother 5,676.79 127.00 1,242.65 2,814.49 900.00 78.00 1,230.17 2,246.33 14,315.43 Directors' fees 2,820.00 2,990.00 * 2," 380.66 2,650.00 2,120.00 1,560.00 2,995.00 1,285.00 1,480.00 26,860.00 Directors' per diem allow- 1,350.00 3,010.00 2,220.00 ance 850.00 800.00 670.00 1,350.00 1,448.00 550.00 1,845.00 830.00 310.00 10,793.00 Officers' and clerks' travel- 730.00 720.00 690.00 ing expenses 584.55 945.00 662.14 1,883.90 1,710.50 815.00 2,794.42 1,138.15 13,278.34 Directors' traveling ex- 899.82 787.50 1,057.36 . penses 1,265.42 409.06 396.63 268.7.7 1,220.45 497.70 378. 71 545.79 852.27 7,584.90 1,600.00 1,500.00 489.14 1,425.00 950.00 1,896.17 259.05 1,001.91 450.00 1,822.40 2,117.67 14,386.26 R T T P E o e x e e l l p s n e e t r t p g a e . h s g r o s a e a n p . g e . h . e . . . , 1 5 0 , , 3 8 3 9 1 8 8 5 9 2 3 9 8 7 5 . . . . . 0 1 6 7 9 4 1 5 4 2 3 9 3 1 , , , 1 2 1 4 5 1 0 0 1 1 0 5 5 7 0 . . . . . 1 6 6 1 0 7 8 5 7 2 4 2 6 , , , 7 4 7 8 7 8 4 5 1 2 7 9 8 7 . . . . . 2 9 9 6 4 8 8 7 6 9 4 4 1 , , , 2 7 5 1 7 1 3 0 8 0 7 0 0 6 9 . . . . . 4 7 0 2 6 6 9 2 1 5 4 4 , , 5 5 8 2 1 9 0 3 6 4 7 9 5 0 2 . . . . . 8 0 9 2 7 7 0 1 9 5 4 9 , , 9 3 3 5 2 2 4 8 8 5 4 3 6 8 6 . . . . . 1 2 3 2 4 6 7 1 3 8 1 6 9 , , 5 4 9 2 9 7 6 7 5 3 6 6 7 2 7 . . . . . 8 5 3 8 2 7 1 3 5 7 1 4 1 , , 6 6 5 2 1 5 3 9 7 7 8 3 3 0 0 . . . . . 8 9 6 5 5 0 1 6 8 8 4 4 1 , , , 9 8 4 1 2 5 0 3 2 0 0 2 5 0 2 . . . . . 0 4 0 4 7 3 0 0 8 7 6 7, , 4 5 3 2 7 5 7 0 8 6 5 4 0 1 1 . . . . . 3 9 6 9 4 6 7 3 7 7 3 7 , , 1 3 5 7 8 7 1 3 1 3 4 2 . . . . 3 7 4 8 3 7 9 8 2 1 9 , , , 4 9 3 3 3 2 7 0 2 4 7 4 2 8 3 . . . . . 7 6 0 5 7 5 8 8 6 4 1 6 1 2 8 3 2 6 0 , , , , , 0 0 4 5 5 6 2 0 2 4 8 7 2 5 3 . . . . . 2 7 2 8 3 6 0 6 0 4 R I L P n r e i f s g i p i u n d h a r t e t i i a , l r n i n s h t g y c e a e a a n b n t d o , d a n a a n s n d l d t t d s e a r p t p a i r o t o e i w n o m e n e i r r s u y m .. , .. 5 1 , ,1 5 8 5 6 3 6 8 5 3 9 2 . . . . 1 2 5 9 1 8 9 8 1 1 1 , , 9 0 1 9 9 0 8 7 6 . . . 1 0 1 8 1 1 • 2 3 , , 5 5 8 8 5 1 9 2 7 0 0 4 . . . ; 3 8 1 8 3 0 5 8 5 1 , , 4 7 7 6 4 4 1 7 3 4 1 3 . . . . . 5 0 8 1 9 1 8 1 5 8 1 4 1 , , , 6 6 0 3 9 1 6 4 3 2 7 . . . . 5 2 3 2 9 6 8 0 3,5 9 1 1 6 3 8 2 6 4 5 9 . . . . 7 0 5 2 6 4 2 2 3 6 1 1 , , , , 1 2 6 1 5 8 4 4 9 3 5 0 . . . . 9 6 5 3 1 7 9 9 3 1 , , 3 6 2 2 1 6 8 9 2 . . . 5 2 4 1 2 6 2 1 , , 6 0 3 3 7 6 6 6 6 2 9 1 . . . . 1 0 9 0 9 2 2 0 3,4 9 8 2 7 9 1 1 4 7 3 3 . . . . 3 3 3 5 3 5 6 0 1 3, , 2 0 1 7 2 4 3 6 0 1 5 3 . . . . 3 4 1 5 5 0 6 0 4 1 1 , , , 0 2 2 7 8 0 7 8 3 2 5 0 . . . . 6 0 8 3 6 6 7 7 5 1 5 6 6 8 , , , , 7 6 9 8 3 6 3 6 1 4 0 9 . . . . 7 3 9 8 9 5 9 5 All other expenses, not specified 7,251.09 22,027.58 3,117.36 1,656.20 2,597.47 6,713.48 8,519.16 1,901.51 2,378.54 4,082.17 4,024.31 2,218.54 66,487.41 Total expenses of operation. 104,063.60 270,013.41 111,327.83 96,278.40 87,959.80 96,285.45 162,014.48 102,455.76 71,294.67 92,516.89 88,560.18 92,748.25 1,375,518.72 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.) 6,916.56 36,560.00 3,040.00 973.36 7,587.82 3,172.27 2,080.00 1,823.28 12,180.45 10,454.73 4,027.73 88,816.20 Miscellaneous charges, account Federal Reserve notes 1,002.79 1,354.44 1,642.97 724.44 4,724.64 Cost of Federal Reserve Bank notes issued, including taxes 4,810 94 4,810.94 CD Amortization charges: a Federal Reserve notes... 14,999.94 9,014.25 3,636.00 18,701.27 4,142.62 7,273.35 57,767.43 Ail other organization expenses 12,976.29 27,125.55 31,517.06 46,760.23 31,893.48 13,640.44 19,863.08 45,085.09 228,861.22 Depreciation of furniture and equipment 4,700.00 5,369.18 10,652.78 10,466.22 3,187.14 15,000.00 2,494.28 3,763.00 3,250.00 116,395.78 9,300.09 84,578.47 Total current expenses 128,656.45 354,068.08 157,540.46 164,846.90 95,547.62 102,644.86 177,14.48 144,202.49 109,222.66 136,763.98 115,410.69 159,158.95 1,845,077.62 Less expenses of transit department 19,309.44 16,229.77 15,187.21 11,405.43 9,499.97 8,977.87 12,255.95 5,687.38 6,190.92 6,437.71 8,185.31 11,387.58 130,754.54 Total current expenses of bank, exclusive of amounts chargeable to transit department 109,347.01 337,838.31 142,353.25 153,441.47 86,047.65 93,666.99 164,758.53 138,515.11 103,031.74 130,326.27 107,225.38 147,771.37 1,714,323.08 Excess of earnings over current expenses 183,646.28 280,862.48 123,900.87 102,365.99 148,486.34 76,642.39 250,273.81 44,350.77 49,087.95 123,722.21 118,843.61 25,830.40 1,528,013.10 Per cent of average capital Jan. 1 to Sept. 30, 1916..... 4.87 3.31 3.16 2.29 5.90 4.17 5.01 2.12 2.55 5.48 5.85 :87 3.70 COST OF FURNITURE AND EQUIPMENT, INCLUDING VAULTS. Balance as reported 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 Additional purchases during 9 months ending Sept. 30, w 1916 11,634.46 36,513.64 2,452.59 9,871 22 5,862.80 8,199.80 21,332.18 10,575.85 7,712.55 2,826.03 12,081.27 2,877.50 131,939.89 Total . .. 21,229.70 63,49400 20,94390 30,058.30 15,362.80 14,428.72 44,332.18 30,921.98 61,872.19 44,654.88 45,336.68 9,300.09 401,935.42 Depreciation charged during w 9 months ending Sept. 30, d 1916 4,700.00 5,369.18 10,652.78. 10,466.22 3,187.14 15,000.00 2,494.28 3,763.00 3,250.00 8,895.78 9,300.09 77,078.47 r r1 Balance Oct. 1,1916.... 16,529.70 58,12482 10,291.12 19,592.08 15,362.80 11,241.58 29,332.18 28,427.70 58,109.19 41,404.88 36,440.90 324,856.95 COST OF UNISSUED FEDERAL RESERVE NOTES. Balance as reported Jan. 1, 1916 . . ... . $38,633.35 •$232,086.79 $43j172.04 $42,757.61 $17,368.34 $9,502.36 $60,380.06 $22,363.46 $19,932.85 $11 j $9,924.60 914.91 $542,288.89 Additional cost of Federal Reserve notes for 9 months ending Sept. 30, 1916 580.32 53,310.05 187.60 397.76 .6,219.48 6,733.38 12,691.01 217.74 606.30 21,848 53 4,801.45 13,635.72 121,229.34 Total 39,213.67 285,396.84 43 j359.64 43,155.37 23,587.82 16,235.74 73,071.07 22 5817,0 20,539.15 33 101 Oft 14,726.05 48,550.63 663,518.23 Cost of Federal Reserve notes issued and charged to current expense during 9 months ending Sept. 30, 1916 7,416.56 36,560.00 3,040.00 973.36 7,587.82 3,172.27 2,080.00 1,823.28 12,18045 10,454.73 4,027.73 89,316.20 Balance Oct. 1, 1916.... 31,797.11 248,836.84 40,319.64 42,182.01 16,000.00 13,063.47 73,071.07 20,501.20 18,715.87 20,920.60 4,271.32 44,522.90 574,202.03 ilncludes $7,500 for depreciation on bank building. CD Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

596 FEDERAL RESERVE BULLETIN. NOVEMBER 1,1916. Decision in the Wisconsin Bank Appeal. of Clark, Jackson, Monroe, Vernon, Crawford, and prant; all of the southern peninsula of On October 13 the Federal Keserve Board Michigan, viz, that part east of Lake Michigan; voted to grant the appeal of certain Wisconsin all that part of Illinois located north of a line forming the southern boundary of the following bankers for transfer to Federal Reserve Discounties: Hancock, Schuyler, Cass, Sangamon, trict No. 7 from Federal Reserve District No. 9, Christian, Shelby, Cumberland, and Clark; no change, however, being made with respect and all that part of Indiana north of a line to northern Michigan. The action taken be- forming the southern boundary of the following comes effective on January 1, 1917. counties: Vigo, Clay, Owen Monroe, Brown, 7 Bartholomew, Jennings, Ripley, and Ohio. The order issued by the Board in disposing (2) That District No. 9 be readjusted and of the appeal is as follows: altered so as to include the States of Montana, North Dakota, South Dakota, Minnesota, all ORDER, AMENDING THE GEOGRAPHICAL LIMITS that part of Wisconsin not included in District OF DISTRICTS NOS. 7 AND 9. No. 7, and all that part of Michigan not included in District No. 7. At a stated meeting of the Federal Reserve (3) That the alterations in Districts Nos. 7 Board, duly held at its office in the city of and 9 directed in this order become effective Washington, D. C, October 12, 1916. January 1, 1917. Present: Mr. Harding, Governor; Mr. War- (4) That the Federal Reserve Banks of Chiburg, Vice Governor; Mr. Hamlin; Mr. Delano; cago and Minneapolis be notified of the changes Mr. Miller; Mr. Williams. made in the districts referred to and directed In the matter of readjusting the geographical to take such action as may be necessary for limits of Districts Nos. 7 and 9 in accordance the transfer of membership of the banks inwith the power vested in the Federal Reserve cluded in the territory affected. Board by section 2 of the Federal Reserve Act. (5) That a copy of this order be filed with Whereas, the Federal Reserve Board is author- the Comptroller of the Currency in order that ized and empowered by section 2 of the Fed- the certificate of the Reserve Bank Organizaeral Reserve Act to readjust the Federal tion Committee may be properly amended. Reserve districts; and W. P. G. HARDING, Governor. Whereas, upon further consideration of— Attest: (a) The petition of certain banks in Wis- H. PARKER WILLIS, Secretary. consin for the transfer from Dis- Transfers of counties resulting from the trict No. 9 to District No. 7 of all that part of Wisconsin situated in order are as follows: District No. 9 east of the western Counties in Wisconsin transferred from District No. 9 la boundaries of the counties of Ash- District No. 7. land, Price, Taylor, Clark, Jackson, and Monroe; Adams. Kewaunee. Portage. Brown. Langlade. Shawano. (J) The answer of the Federal Reserve Calumet. Manitowoc. Sheboygan. Bank of Minneapolis; Clark. Marathon. Waupaca. (c) The briefs of counsel and arguments Door. Marinette. Waushara. heard by the Federal Reserve Fond du Lac. Marquette. Winnebago. Board; Green Lake. Monroe. Wood. it appears to such Board that the convenience Jackson. Oconto. and customary course of business and the Juneau. Outagamie. best interests of the Federal Reserve system will be served by a readjustment of the Counties in Wisconsin remainingin District No. geograpical limits of districts Nos. 7 and 9; Ashland. Florence. Price. Now, therefore, the Federal Reserve Board Barron. Forest. Rusk. doth order— Bayfield. Iron. St. Croix. (1) That District No. 7 be readjusted and Buffalo. La Crosse. Sawyer. altered so as to include the State of Iowa, all Burnett. Lincoln. Taylor. that part of Wisconsin located south of the Chippewa. Oneida. Trempealeau northern boundary of the counties of Marinette, Douglas. Pepin. Vilas. Oconto, Langlade, Marathon, and Clark; and Dunn. Pierce. Washburn. east of the western boundary of the counties Eau Claire. Polk. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

598 FEDERAL RESERVE BULLETIN. NOVEMBER 1,1916. Section 19 of the Federal Reserve Act re- It may also be desirable to call attention to quires each member bank not in a reserve or the fact that under the amendment to section central reserve city to keep— 11 of the Federal Reserve Act, approved Sepuin the Federal Reserve Bank of its district tember 7, 1916, the Federal Reserve Board is for a period of twelve months after said date authorized to permit member banks to carry two-twelfths, and for each succeeding six in the Federal Reserve Banks of their respecmonths an additional one-twelfth," tive districts any portion of their reserves now of 12 per cent of the aggregate amount of itsrequired by section 19 to be held in their own demand deposits, and of 5 per cent of its time vaults. The Board, under authority of this deposits. Similar language is used with refer- amendment, has already issued a ruling to the ence to the banks in reserve cities. effect that such member banks may carry all The•"said date" referred to is the date offi- or any part of such reserves in their respective cially announced by the Secretary of the Federal Reserve Banks. Treasury for the establishment of a Federal Reserve Bank in any district. That date was November 16, 1914. Operation of the Clearing Plan. It therefore follows that on November 16, The following table shows briefly the clearing 1916, country banks and banks in reserve operations of the Federal Reserve system for cities will be required to pay their Federal Rethe monthly period ending October 15, 1916, serve Bank an additional installment of rewith comparative figures for each of the two serves. The amount thus to be paid by them preceding months: will be for country banks one-twelfth of 12 per cent of their demand deposits, as held on andOperations of the FederalReserve inter district clearing system, Sept. 16 to Oct. 15, 1916. after November 16, plus one-twelfth of 5 per cent of their time deposits; and for banks in Average r th es e e ir r ve d e c m it a i n es d o d n e e p - o fi s f i te ts e , n t p h l us o f o 1 ne 5 - f p if e te r e n ce th n t o o f f Bank. h n o d a u f a n m i i t d l e b l y m e e . d r s a c A o m l f e v o a d e u r r a i n a i n t g l g y e o . f M d b i i n e s a t m n r t i h k b c e s e t. r b m a a S t n i t t k p t a s i a t n e r r g . e- 5 per cent of their time deposits. It is suggested that each Federal Reserve Boston 34,328 $9,583,898.26 402 New York 35,574 21,771,197.98 626 31 Bank ©all the attention of each member bank Philadelphia 25,089 12,648,696.00 630 137 Cleveland 14,072 6,929,805.09 756 490 to the date upon which the transfer of reserves Richmond 14,521 6,649,364.00 520 254 Atlanta (including New above referred to is due, and that it arrange Orleans branch) 11,661 3,668,876.04 391 460 Chicago ... 2 21,32210,705,835.14 994 1,287 such additional details with member banks as St. Louis 8,814 5,677,716.85 468 805 Minneapolis. 12,236 6,333,496.11 753 1,100 may seem desirable. The Board recommends Kansas City 10,956 5,729,296.78 937 1,388 Dallas 11,539 6,747,754.00 621 206 that the member banks be called upon to pay San Francisco , 4,779 1,220,171.00 520 1,060 their own express charges, unless there is some Total, Sept. 16 to Oct. 15.. 204,891 97,666,107.25 7,618 7,459 Aug. 16 to Sept. 15, 177,397 78,559,703.82 7,618 7,449 good reason why the Federal Reserve Bank of July 15 to Aug. 15.. 133,113 59,301,695.94 7,624 7,032 the district thinks it best to bear these express 1 All State banks in district. charges itself. The form in which payment is 2 Does not include Government checks averaging 3,166. to be made may be suggested by the Federal The Federal Reserve Bank of Richmond Reserve Bank in such circular or notice as it on October 11 issued a letter to its member may send out, and it will be well to make some banks as to clearing operations, the substance reference to the provision of the Act that any of which is reproduced, as follows: Federal Reserve Bank may receive from its To members of the Federal Reserve Bank of member banks as reserves not exceeding one- Richmond: half of each installment eligible paper as de- For the information of member banks we scribed in section 13, properly indorsed and are sending a statement of operations of our acceptable to the said Federal Reserve Bank. collection department from the inauguration Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

NOVEMBER 1,1916. FEDERAL RESERVE BULLETIN, 599 of the new collecting and clearing system on tance will become available, should enable July 15 up to September 30. a. period of 68 members to determine the standing of their working days. accounts on our books at any time, but to During that period this bank handled further aid members in testing their reserve 776,254 checks, amounting to $305,157,900. balances by our books we shall begin in the The cost per $1,0.00 in handling this business near future to send weekly statements of was 3.18 cents, which is. astonishingly low. accounts. The service charge to members based upon If" all members would keep " transit acactual cost of handling was 1J cents per item counts, " as suggested in our circular on that up to August 31. For the month of September subject, then their entries and ours would be the service charge was 1\ cents per item, the coincident, and their balances would agree reduction.in cost being due to the larger num- with our books at all times. ber of checks handled without increase in force. Of course, delays in the mails, either way, The daily average number of items handled would create exceptions; but if members will in September was 13,823, as against an aver- adopt the practice of advising us when our age of 10,502 for the period up to August 31. remittances reach them too late to be handled The total cost of handling during September according to the schedule time, we will make amounted to $4,112.88. The service charge at the date of our entries correspond, and thus li cents amounted to $4,031.30. avoid the impairment of reserve which such Our collection department is now well organ- delay might otherwise cause. ized, and is capable of handling an increase We think it fair to all concerned, and as of 50 per cent in number of items without equitable to one bank as another, and very additions to the force. greatly to the interest of the whole collection If member banks will be good enough to system, that remittances from us, containing follow the suggestions and directions which we only checks upon the bank to which they are send out from time to time in order to facilitate sent, should when received before the close the working of the system, they will aid us of banking hours be treated just as a deposit greatly in rendering satisfactory service. would be treated when made within the time Collections can now be made on more than specified. 15,000 banks without an exchange charge. The utmost promptness possible is in the There is another clearing function being interest of all. performed by the Federal Reserve system, and that so quietly and easily that it escapes the attention which it deserves. In the operation The following letter relating to the present of the collection system and in other transac- collection system has been received by a Fedtions between the Federal Reserve Banks of eral Reserve Bank from one of the country the several districts balances naturally are banks in its district: created for settlement. These settlements are now being made once a week and are effected As the Federal Reserve system receives through the medium of a gold settlement fund many hard blows from various sources, and in the custody of the Federal Reserve Board particularly the par system of check collecand stored in the vaults of the Treasury Depart- tions comes in for considerable criticism from ment. This fund, deposited by the Federal many bankers, it occurred to me that possibly Reserve Banks, and a part of their reserve, you might appreciate a word of commendation was on September 21, $121,230,000. The from a small country bank in your district. clearing between the Federal Reserve Banks Before the — Clearing House opened on that day amounted to $158,558,000, and the collection department for country check was settled by the transfer of ownership of only collections, and you put into execution your $9,539,000 in gold, and this transfer was plan of par check collections, we had a numeffected by bookkeeping entries. ber of reciprocal collection accounts with The economical working of this system is our neighbors and with banks in the larger apparent, and its potential usefulness to the and important banking cities in our State. country is manifest. All these accounts caused extra work, station- Our daily advices of remittances received, ery and postage, besides tying up items from showing what part is placed to credit and the three days to a week. Now, we have disconexact dates on which the balance of any remit- tinued these accounts, and do all our check 66559°—16 3 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

600 FEDERAL RESERVE BULLETIN. NOVEMBER 1,1916. collecting through your bank and our corre- 2. The elimination of exchange charges, spondents in New York and Philadelphia. We which in some cases have not been equitable, find it saves money, labor, and time, and ex- in other cases quite excessive. pect to use your system more and more as 3. Reduction of the expense of collection to time goes on. It seems the correct and scien- as near absolute cost as possible. tific method to pay our own checks by sending 4. The release and more equitable distribuyou checks on other banks which we receive tion of the large balances at present mainfrom our customers for deposit*. tained by the smaller banks in the banks in It is only fair to say we never made any larger centers for the purpose of receiving par great sum of money annually from the item of collection of out-of-town miscellaneous items. exchange. Our idea was, and is, to make this The disadvantages, as summarized, are: an easy point to collect, rather than the 1. The loss of exchange on the part of the reverse. The writer could never understand smaller banks, which exchange they have dethe reason for excessive rate of exchange on ducted in remitting checks on themselves. checks. A bank is not doing a favor to the 2. The revision and, in many eases, terminaholder or payee, when it pays its own check; tion of the reciprocal relations which have rather is the favor done to the maker of the under the old system been maintained for check, and he, if anyone, should pay the many years between the smaller banks and charge. their correspondents in larger cities, as the Your idea of a service charge is an eminently Federal Reserve Banks will to a great extent proper one, in my opinion. render the same service. I trust you may soon have the collection Balancing advantages against disadvantages, S3rstem completed by arranging for notes, the unprejudiced must recognize what is to drafts, and coupons. When this is accom- be gained under the system as of greater value plished it should be a great success. to business than what w#uld be lost to the banks. It is to be hoped that this important matter The National Association of Credit Men, in is to be fairly treated by all interested and that there will prevail a unanimity of sentia letter to members, has the following review ment in favor of a system that will remove and summary of the check collection system: from the channels of business another burden The recent regulation of the Federal Re- and tax on country-wide distribution. serve Board providing for a check clearance system at exact cost (not a free system, as New National Baaik Charters. many seem to think) is one of the most interesting subjects to-day in business finance. It The Comptroller of the Currency reports the is not possible to introduce great changes or following increases and reductions in the numto unseat established customs without some ber of national banks and the capital of nawrenching and rasping, and the bringing into tional banks during the period from September play of a change so far-reaching as that provided for by the check clearing regulations of 23 to October 20, 1916, inclusive: the Federal Reserve Board must of necessity Banks. arouse some antagonism. New charters issued to 8 It has been customary for many banks to With capital of $475, 000 charge exchange that produces a good income, Increase of capital approved for 5 even though the charges might be imposed upon With new capital of 5, 725, 000 the payment of the checks of the bank's customers. That this income is to be affected Aggregate number of new charters and has occasioned some alarm. banks increasing capital 13 The bigness of the question suggests careful With aggregate of new capital authorized. 6, 200,000 consideration, and we venture to lay before Number of banks liquidating (other than our members the following .advantages and those consolidating with other national disadvantages of the system as they have been banks) ... 4 summarized by a close student and experienced Capital of same banks......... 325,000 practitioner in banking matters. Number of banks reducing capital None. The advantages, as summarized, are: Reduction of capital None. 1. Direct and prompt presentation of checks. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

NOVEMBER 1,1916. FEDERAL KESEKVE BULLETIN. 601 Total number of banks going into liquida- Banks, Fiduciary Powers. tion or reducing capital (other than those consolidating with other national banks). 4 The following applications for permission Aggregate capital reduction $325,000 to act under section 11 (k) of the Federal Reserve Act have been approved by the Federal The foregoing statement shows the aggregate of increased capital for the period of the banks Reserve Board since the issue of the October embraced in statement was 6, 200,000 Bulletin. Against this there was a reduction of capital DISTRICT NO. 1. owing to liquidations (other than for con- Trustee, executor, administrator, and registrar of stocks solidation with other national banks) and and bonds: First National Bank, Gardner, Mass. reductions of capital of 325,000 DISTRICT NO. 2. Net increase 5,875, 000 Trustee, executor, administrator, and registrar of stocks and bonds: First National Bank, Cranbury, N. J. Commercial Failures in September. National Bank of New Jersey, New Brunswick, N. J. Registrar of stocks and bonds: Commercial suspensions in September show Cayuga County National Bank, Auburn, N. Y. improvement not only as compared with the DISTRICT NO. 4. same months for several preceding years, but Trustee, executor, administrator, and registrar of stocks as contrasted with every previous month this and bonds: Peoples National Bank, Zelienople, Pa. 3^ear. The total number, as reported by R. G. Dun & Co., is 1,154, with liabilities of DISTRICT NO. 5. Trustee: $11,569,078, as against 1,414, for $16,208,070, First National Bank, Elizabeth City, N. 0. in September last year, 1,615 two years ago for DISTRICT NO. 6. $23,018,027, and 1,235 with indebtedness of Trustee, executor,, administrator, and registrar of stocks $22,662,694 in 1913. and bonds: Barnett National Bank, Jacksonville, Fla. The comparisons with earlier months show Merchants National Bank, Savannah, Ga. contraction from the August returns, when de- DISTRICT NO. 7. faults numbered 1,207 and the. amount involved Trustee, executor, administrator, and registrar of stocks was $20,128,709, while as compared with the and bonds: 1,207 suspensions for $11,647,499 in July, First National Bank, Batesville, Ind. First National Bank, Brazil, Ind. which was the most favorable month up to First National Bank, Logansport, Ind. September, the showing is even more favor- Merchants National Bank, Michigan City, Ind. First National Bank, Rochester, Ind. able. Suspensions in January were 2,009 in First National Bank, Boone, Iowa. number and $25,863,286 in amount. First National Bank, Marengo, Iowa. First National Bank, Montezuma, Iowa. Detailed figures by Federal Reserve districts Trustee, executor, and administrator: First National Bank, Greencastle, Ind. follow: DISTRICT NO. 8. District. o N f u fa m il b ur e e r s. Liabilities. Tr a u n s d te e b , o n e d x s e : cutor, administrator, and registrar of stocks Boone County National Bank, Columbia, Mo. No. 1.... „ 104 1839,052 No. 2 162 1,685,919 DISTRICT NO. 10. No 3 74 750,253 Trustee, executor, administrator, and registrar of stocks No. 4 •.. ' . 110 1,415,550 No 5 ' 61 1,983,290 and bonds: No. 6... ' . 124 1,722,912 First National Bank, Idaho Springs, Colo. No 7 •• ' 190 1,369,295 No. 8... . • . ........ 64 335,458 No. 9 32 124,349 DISTRICT NO. 11. N N o o . . 1 11 0 . • 4 7 8 8 2 29 7 2 6 , , 7 4 9 0 7 3 Trustee, executor, administrator, and registrar of stocks No. 12 107 773,800 and bonds: Victoria National Bank, Victoria, Tex. Total, 1916 1,154 11,569,078 1915... 1,414 16,208,070 1914 '. 1,615 23,018,027 DISTRICT NO. 12. 1913... 1,235 22,662,694 Registrar of stocks and bonds: 1912 1,167 13,280,511 American National Bank, San Francisco, Cal. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

602 FEDERAL RESERVE BULLETIN, NOVEMBER 1,1918. Renewal of Mortgage Loans, renewal or renewals of the note described therein, provided, however, the bank does not The Federal Reserve Board has recently in any way obligate itself to grant such rereceived various inquiries as to the question of newals, for the statute places a limitation on renewing mortgage loans made for a year under the loan made by the bank. The manifest authority of the Federal Reserve Act. purpose of the statute is to place the bank in a One such recent communication raises the position where it can, if it desires, liquidate the following questions: loan at the expiration of one year, thereby (1) Whether a national bank under authority preventing its funds from being tied up for a of section 24 of the Federal Reserve Act may longer period. If the mortgage or deed of renew a loan made for one year, accepting as trust executed as security for the loan places collateral security a mortgage or deed of trust the bank in a position where it can proceed on the same property as the original loan. (2) Whether a new mortgage or deed of trust against the property taken as security in case must be executed in case such renewal is of default in payment and the loan is not accepted. made for a longer period than one year, the (3) Whether a note made for one year and statute will have been complied with, even discounted by a national bank under authority though the mortgage or deed of trust is drawn of section 24 of the Federal Reserve Act, as amended, may be carried after maturity as an so as to permit the bank to make a new loan on asset of the bank upon payment of interest in the same security for a period not to exceed one advance without treating such note as overdue year, upon the maturity of the note first taken. paper. In all cases payment and cancellation of the Inquirers have been advised in reply to such maturing note should be required, and if the questions that the Act provides specifically that original note is carried in the assets of the bank "no loan made upon the security of such real after maturity, it should be treated and reestate as distinguished from farm land shall be ported as overdue paper. made for a longer time that one year." Any note taken by a national bank, therefore, as Clayton Act Decisions. evidence of a loan against real estate other than farm land, must mature within one year from The Federal Reserve Board has taken action the date of its discount. At the expiration of on 1,335 applications for permission under the one year the bank must have the right to re- Kern amendment, granting 1,195 and refusing quire payment and to proceed to foreclose the 140. No records exist to show the number of mortgage, should such action be necessary. directors who have surrendered bank director- Any agreement entered into between the bank ates in accord with the provisions of the act and the borrower at the time the loan is made, without filing any application. The subtotals to renew the note at maturity, would not con- of the districts are as follows: stitute a compliance with the terms of the statute, but it seems clear, nevertheless, that District. Granted. Refused. if the bank has the option to require payment of a note at its maturity at the end of one year, No. 1—Boston 66 23 No. 2—New York 265 54 it may, should it so desire, make a new loan to No. 3—Philadelphia.... 133 13 No. 4—Cleveland 179 6 the same parties and upon the same security No. 5—Richmond 107 24 No. 6—Atlanta. 129. 0 for a further period of one year. In order to No. 7—Chicago 122 13 No. 8—St. Louis 54 5 obviate the necessity of executing a new No. 9—Minneapolis 27 0 No. 10—Kansas City... 56 0 mortgage or deed of trust, there would seem to No. 11—Dallas 3 0 No. 12—San Francisco. 154 2 be no legal objection to having the original mortgage or deed of trust so drawn as to cover 1 i One of which was refused in part. a Four of which were disapproved in part. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

NOVEMBER 1,1916. FEDERAL RESERVE BULLETIN. 603 GOLD SETTLEMENT FUND. Amount of clearings and transfers, Federal Reserve Banks, from Sept. 22,.1916, to Oct. 19, 1916, inclusive. [In thousands of dollars.] An audit of the Gold Settlement Fund and Federal Reserve- Agents' Fund was made on Total Transclearings. Balances. fers. September 19 by a representative of the Federal Reserve Banks and Federal Reserve Settlement of— Agents acting in conjunction with representa- S O e c p t. t . 5 2 ,1 8 9 ,1 1 9 6 16 1 16 6 1 4 , , 2 6 8 9 4 6 1 18 1 ^ , 9 8 8 7 3 8 4,0 2 0 50 0 tives of the Federal Reserve Board. O Oc c t t . . 1 12 9 , , 1 1 9 9 1 1 6 6.... 1 1 6 6 9 6 , , 1 5 3 8 2 9 1 7 6 , , 7 8 8 8 5 8 4 4 , , 4 7 5 8 0 0 The following results represent transactions Total 661,701 55,534 13,480 Previously reported 2,667,068 267,080 92,570 for the month ending October 19: Totals since Jan. 1,1916 3,328,769 322,614 106,050 Total transfers, 1916 106,050 Total for 1915, including transfers 1,052,649 Total clearings and transfers, May 20,1-915, to Oct. 19,1916.. 4,487,468 Changes in ownership of gold. fin thousands of dollars.] Total change from To Sept. 20, 1916. From Sept. 21,1918, to Oct. 19,1916, inclusive.* May 20, 1915, to Oct. 19, 1916.2 Federal Reserve Bank of-— Balance to credit Sept. Balance Decrease. Increase. 2 n 1 e , t 1 9 d 1 e 6 p , o p s l it u s s Oct. 19, Decrease. Increase. Decrease. Increase. of gold since 1916. that date. Boston 17, OSS 13,315 13,830 515 17,600 New York 191,143 39,857 7,184 32,673 223,816 Philadelphia... 46,199 11,699 13,687 1,9 *48*i87 Cleveland 12,011 11,311 11,033 278' 11,733 Richmond 16,495 9,955 17,481 7,526 24,021 Atlanta 17,250 s -1,130 2,795 3,925 21,175 Chicago 10,609 21,761 25,164 3,403 7,206 St. Louis 6,458 758 4,739 3,981 10,439 Minneapolis 4,125 2,525 4,552 2,027 6,152 Kansas City... 25,671 8,738.5 8,327. 411 25,260 Dallas 22,746 s-1,991.5 10,668. 12,660 35,406 San Francisco. 33,712 6,712 4,049 "2," 663' 31,049 Total. 201,752 201,752 123,510 123,510 36,025 36,025 231,022 231,022 1 Changes in ownership of gold during period Sept. 21,1916, to Oct. 19,1916, equal 5.3 per cent of obligations settled. 2 Total changes in ownership of gold equal 5.15 per cent of total obligations settled. 3 Withdrawals have exceeded balance plus deposits. Gold settlement fund—/Summary of transactions, Sept. 22, 1916, to Oct. 19, 1916, inclusive. [In thousands of dollars.] Ba l l a a s n t ce Gold. Transfers. Settlement of Sept. 28, 1916. Se 1 p 91 t 6 . , 28, Cha s n h g ip e s o i f n g o o w ld n . erstate- balance Federal Reserve Bank of— ment, in fund Se 1 p 91 t. 6 . 21, 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 . cr T e o d t i a t l s. cr N ed e i t ts. cle a a ft r e in r g. Decrease. Increase. ~R OStOTl 15,815 250 397 11,181 10,784 15,668 147 New York 9,857 10,000 8,138 36,086 27,948 11,719 8,138 Philadelphia 17,179 591 25,576 22,985 16,588 591 11 431 12,285 14,035 1,750 13,181 1,750 Richmond 13,065 1.590 200 11,180 13,693 2,513 14,188 2,513 Atlanta 2,870 2; 000 5,964 8,134 2,170 3,040 2,170 Chicago 21,631 2,008 23,268 21,260 19,623 2,008 St Louis 2,258 17,368 18,511 1,143 3', 401 1,143 3 525 4,875 6,639 1,764 5,289 1,764 Kansas Citv 11, 738.5 600 10,675 11,172 497 11,635.5 497 Dallas 5,148.5 2,820 2,000 5,377 7,523 2,146 6,474.5 2,146 San Francisco 6 712 250 849 2,861 2,012 5,613 1,099 Total 121,230 7,010 12,200 250 250 11,983 164,696 164,696 11,983 126,420 11,983 11,983 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

604 FEDERAL RESERVE BULLETIN. NOVEMBER 1,1916. Gold settlement fund—Summary of transactions, Sept. 22, 1916, to Oct. 19, 1916, inclusive—Continued. [In thousands of dollars.] Balance Gold. Transfers. Settlement of Oct. 5, 1916. Oct. 5, Changes in ownerlast 1916, ship of gold'. Federal Reserve Bank of— m sta e t n e t - , b in a l f a u n n c d e Se 1 p 9 t 1 . 6 2 . 8, d W ra i w th n - . D i e te p d o . s- Debit. Credit. de N b e i t ts. d T e o b t i a ts l . c T re o d t i a t l s. cr N ed e i t ts. cle a a ft r e in r g. Decrease. Increase, Boston 15,668 2,500 1,000 1,000 2,863 12,900 10,037 10,305 2,863 New York 11,719 5,000 13,952 40,198 26,246 2,767 13,952 Philadelphia.. 16,588 466" '2,'666" 20,264 25,197 4,933 19,121 2,933 Cleveland 13,181 ioo! 10,883 11,865 982 14,063 982 Richmond 14,188 720 11,094 14,305 3,211 16,169 3,211 Atlanta 3,040 1,950 6,669 7,410 741 2,781 741 Chicago 19,623 1,000 2,000 19,248 21,961 2,713 24,336 4,713 St. Louis 3,401 1,000 15,200 16,229 1,029 5,430 2,029 Minneapolis.. 5,289 1,000 824 4,775 3,951 3,465 Kansas City.. 11,635.5 1.600 10,416 10,567 151 10,286.5 151 D Sa a n l la F s r . ancisco 6 5 , , 4 6 7 1 4 3 .5 3,000 1,000 1,239 5 4 , , 6 0 2 17 0 1 2 0 , , 7 7 7 3 8 8 5,118 3 8 , , 3 5 7 9 4 2.5 5,118 Total... 126,420 11,450 5,720 4,000 4,000 18,878 161,284 161,284 18,878 120,690 19,878 19,878 la B s a t l s a t n a c t e e- Gold. Transfers. Settlement of Oct. 12,1916. B in a l f a u n n c d e Cha s n h g ip e s o i f n g o o w ld n . er- Federal Reserve Bank ment, after of- O 19 c 1 t 6 . . 5, d W ra i w th n - . De e p d o . sit- Debit. Credit. de N b e i t ts. d T eb o i t t a s l . c T re o d ta it l s. cr N ed e i t ts. c O l 1 e c 9 a t 1 . r 6 i 1 n . 2 g , , Decrease. Increase Boston 10,305 1,000 14,229 15,313 1,084 10,389 84 New York 2,767 3,000 16,206 42,810 26,604 -10,439 13,2 Philadelphia 19,121 5,240 160 21,133 23,330 "2,"i97 16,238 *2*i97 Cleveland 14,063 80 682 11,120 10,438 13,461 682 Kichmond 16,169 600" 950 2,000 12,132 15,026 2,894 17,413 Atlanta. 2,781 500 280 7,454 7,715 261 2,822 541 Chicago 24,336 1,500 17,270 19,593 2,323 28,159. 3,823 St.Louis 5,430 1,500 14,480 16,589 2,109 6,039 609 Minneapolis 3,465 5,031 6,366 1,335 4,720 1,255 Kansas City 10,286.5 600 12,141 12,364 223 9,909.5 223 Dallas 8,592.5 3,020 6,335 9,893 3,558 9,130.5 3,558 San Francisco 3,374 200 2,454 3,358 904 4,078 704 Total 120,690 9,960 1,190 4,780 4,780 16,888 166,589 166,589 16,888 111,920 . 13,888 13,888 la B s a t l s a t n a c t e e- Gold. Transfers. Settlement of Oct. 19, 1916. B in a l f a u n n c d e Cha s n h g ip e s o i f n g o o w ld n . er- Federal Reserve Bank ment, after of— O 1 c 9 t 1 . 6 1 . 2, d W ra i w th n - . Deposit- Debit. Credit. de N b e i t ts. d T e o b t i a t l s. c T re o d t i a t l s. cr N ed e i t ts. c O l 1 e c 9 a t 1 r . 6 i 1 n . 9 g , , Decrease. Increase, Boston 10,389 13,775 17,216 3,441 13,830 3,441 New York i-10,439 15,000 4,250 1,627 34,102 32,475 7,184 2,623 Philadelphia.. 16,238 2,551 24,370 21,819 13,687 2,551 Cleveland 13,461 100 2,328 12,798 10,470 11,033 2,328 Richmond 17,413 1,000 160 12,706 ' 13,614 17,481 908 Atlanta 2,822 500 200 6,762 7,035 273 2,795 473 Chicago 28,159 "130 4,000 19,312 20,187 875 25,164 3,125 St. Louis 6,039 1,500 17,096 200 4,739 200 Minneapolis... 4,720 168 6,407 6,239 4,552 168 , Kansas City... 9,909.5 300 200 12,841 11,759 8,327.5 1,282 Dallas 9,130.5 550 250 250 6,572 2,088 10,668.5 i,*838 San Francisco. 4,078 2,391 2,362 4,049 29 Total. 111,920 3,950 15,540 4,450 4,450 7,785 169,132 169,132 7,785 123,510 9,483 9,483 1 Overdraft. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

NOVEMBER 1,1916. FEDERAL RESERVE BULLETIN, 605 Federal Reserve Agents? Fund—Summary of transactions Sept. °22, 1916, to Oct. 19, 1916, inclusive. [In thousands of dollars.] Week ending Sept. 29, Week ending Oct. 5, Week ending Oct. 12, Week ending Oct. 19, Sept. 21, 1916. 1916. 1916. 1916. Federal Reserve Agent at— 1 b 9 a 1 l 6 - , ance. With- Depos- Bal- With- Depos- Bal- With- Depos- Bal- With- Depos- Baldrawn. ited. ance. drawn. ited. ance. drawn. ited. ance. drawn. ited. ance. Philadelphia , 3,420 3,420 400 . 3,820 360 240 3,700 3,700 Richmond . 5,500 "i*566" 6,550 1,950 8,500 100 600 9,000 1,000 10,000 Atlanta 8,550 2,000 10,550 1,000 11,550 500 12,050 500 12,550 Chicago 3,080 3,080 3,080 3,080 130 2,950 St. Louis 2,710 """266* 2,510 2,510 266' 2,310 1,500 3,810 Minneapolis 1 350 1,350 1,000 2,350 2,350 2,350 Kansas City 9,500 9,500 1,500 11,000 400 600 11,200 300 11,500 Dallas 4,980 ""206' 7,580 200* 2,500 9,880 1,000 10,880 500 11,380 San Francisco , 9,740 9,740 9,740 150 9,590 9,590 Total 48,830 850 6,300 54,280 200 8,350 62,430 1,210 2,940 64,160 130 3,800 67,830 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

606 FEDERAL RESERVE "BULLETIN. NOVEMBER 1,1916. INFORMAL RULINGS OF THE BOARD. Below are reproduced letters sent out from Clayton Act Interpretations. time to time over the signatures of the officers Your letter of September 28, 1916, addressed or members of the Federal Reserve Board to the Secretary of the Treasury, has been which contain information believed to be of referred to this office for attention. Section 8 of the Clayton Antitrust Act relatgeneral interest to Federal Reserve Banks and ing to interlocking bank directorates does not member banks of the system: attach any penalty for noncompliance with its provisions. Section 11 of that act, however, Loans on Farm Land. authorizes the Federal Reserve Board to serve I wish to acknowledge receipt of your letter a complaint upon any person violating the of September 27, 1916, relating to the con- provisions of section 8, stating its charges struction of Regulation G of the Federal and containing a notice of a hearing. If the Reserve Board., Board upon hearing believes the law is being The Federal Reserve Act as originally passed violated, it shall, under the terms of section 11, by Congress authorized any national bank to serve an order requiring the person complained make loans on improved and unencumbered of to desist from such violations and to resign farm land under certain specified conditions. the directorships held contrary to law. In an act approved September 7, 1916, this sec- Upon failure to obey such order the Board tion of the Federal Reserve Act was amended so may apply to the Circuit Court of Appeals of as to authorize any national bank to loan on the United States for its enforcement. In the any other* improved and unencumbered real proceedings before the Circuit Court findings estate, as distinguished from farm land, pro- of fact before the Board shall be conclusive, vided such real estate is located within 100 though new evidence may be introduced by miles of the place in which the loaning bank is either party, and the judgment and decree of located. the Circuit Court is final, except that it is Under the terms of the amended law and subject to review by the Supreme Court of the the regulation of the Board a loan on real United States upon certiorari. estate other than farm lands, which will, of OCTOBER 4, 1916. course, include city or town property, must not be for a period longer than one year, nor shall the amount of any such loan exceed 50 In reply to your letter of the 6th instant, I per cent of the actual value of the property by which the loan is secured. wish to state that in the oppinion of Counsel for Board the acts of a director of a member OCTOBER 3, 1916. bank as director, after October 15, 1916, are valid even though he should later be adjudged disqualified to serve as such by a circuit court of appeals as provided under section 11 of the Member Bank Reserves. Clayton Act. In reply to yours of the 3d instant, you It is understood, however, that acts after are advised that under the regulations of the the decree of the circuit court of appeals Board member banks are now permitted to denying the right to serve as director would carry with their, Federal Reserve Bank any not merely be invalid but also in contempt of portion of their reserve heretofore required to court. be maintained in their own vaults. It is, of OCTOBER 14, 1916. course, understood that the aggregate in vault with the Federal Reserve Bank, and with the approved reserve agent, must equal Heal Estate Loans. the total amount required by law to be main- In answer to your letter of October 11,1 beg tained. to call your attention to the following letter OCTOBER, 4, 1916. sent out by the Board on September 13, 1915, Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

NOVEMBER 1,1916. FEDEBAL BE SERVE BULLETIN. 607 and published on page 309 of the Federal Section 4 of the Federal Reserve Act pro- Reserve Bulletin of that year: vides that— " Class A shall consist of three members, who "While it is the opinion of the Board that, shall be chosen by and be representative of the as a matter of sound business policy, banks stockholding banks.77 should not be interested in real estate to an There is no expressed provision specifying extent greater than the limit prescribed by that a person to be eligible as a class A director section 24, the Board feels that the law is such must be a resident of the district, but the that neither the Board nor the Comptroller of Board may very properly rule that a director, the Currency can require banks that may to be representative of the stockholding banks, choose to make loans under section 24 to inmust be located in the same district as those clude as a limitation under that section the banks. If such were not the case it would be aggregate of real estate loans which they may possible for all 12 Federal Reserve Banks, for have acquired under section 5137, Revised instance, to elect one and the same person as Statutes/' a class A director.. You will notice that this opinion was ex- The term " representative of the stockholdpressed before the recent amendment to sec- ing banks" must mean more than the fact that tion 24, but although there has been no defi- a person is elected by such banks, because the nite ruling since the adoption of that amend- act provides that such director shall be " chosen ment, this would seem to be equally valid by and be representative of'; such banks. to-day. It is the opinion of the Board, therefore, that OOTOBEE 14, 1916. though the Federal Reserve Act does not specifically require that a class A director shall be a resident of the district, nevertheless Congress clearly intended that all of the class A directors Election of Directors. should not merely be elected by the member Question has been raised whether or not a banks but that they should also be truly represident of that part of Connecticut, which is resentative of them and that to insure comnow located in the New York Federal Reserve pliance with this latter requirement such direcdistrict, may properly be elected as a class A tors should be residents of the district. director of the Federal Reserve Bank of Boston. OOTOBEE 16, 1916. 66559°—: Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

608 EEDESAL RESERVE BULLETIN. NOVEMBER 1, 1916. LAW DEPARTMENT. The following opinions of counsel have been In no other case is presentment for acceptauthorized for publication by the Board since ance necessary in order to render any party to the bill liable. the last edition of the Bulletin: There does not seem to be any doubt, there- Presentment of Bills for Acceptance. fore, that the failure of the holder to present The drawer and indorsers of a bill of exchange made the bill in question for acceptance has not payable on a date specified in the bill are not discharged discharged the drawer or the indorsers and by a failure to present for acceptance, unless the bill expressly provides that it must be presented for that pur- has not affected its status as a bill. It is a pose, or unless it is payable elsewhere than at the resi- date bill and not a bill coming within the dence or place of business of the drawee. provisions of section 143. OCTOBER 17, 1916. The remaining question, therefore, is whether SIR: Certain questions have been raised as it is a bill " drawn in good faith against actually to the status of a draft discounted by a Federal existing values." It is drawn against a cus- Reserve Bank. The draft was drawn Sep- todian's receipt for 1,075 bales of cotton and tember 14, 1916, and made payable on No- is, consequently, drawn against actually existvember 15, 1916. Attached to the draft is ing values as that phrase is generally underthe custodian's receipt for 1,075 bales of cotton. stood. The amount of the draft is $85,000, an amount It is the opinion of this office, therefore, that in excess of 10 per cent of the capital and there is no legal objection to the discount of surplus of the national bank for which it was this bill by the Federal Reserve Bank, prorediscounted. vided, of course, that it was a bill drawn in The question to be determined is whether good faith against actually existing values. this draft, which has not been presented to Any instrument drawn in the form of a bill the drawee for acceptance, is a bill of exchange of exchange on a dummy drawee or drawn on drawn in good faith against actually existing a drawee to whom it was never intended to values within the meaning of section 13 of the present the bill for acceptance or payment* Federal Reserve Act. would not, in the opinion of this office, be a The instrument is drawn in the form of a bill of exchange drawn in good faith against bill of exchange and is made payable on a actually existing values. date specified in the bill. The fact that it Respectfully, has not been presented for acceptance does M. C. ELLIOTT, Counsel. not, under the provisions of the negotiable To W. P. G. HARDING, instruments law and under the decisions of Governor Federal Reserve Board. the various courts, affect the status of the bill. Section 143 of the negotiable instruments law provides that— Loans on City Real Estate. Presentment for acceptance must be made: National banks in making loans secured by improved 1. Where the bill is payable after sight, or and unencumbered real estate may lend an amount equal in any other case where presentment for to one-half of the market value of the real estate as imacceptance is necessary in order to fix the proved. The value of the improvements constitutes a maturity of the instrument; or part of the value of the property offered as security. 2. Where the bill expressly stipulates that OCTOBER 17, 1916. it shall be presented for acceptance; or SIR: The attached letter from the governor . 3. Where the bill is drawn payable elsewhere than at the residence or place of business of of the Federal Reserve Bank of Chicago has the drawee. been referred to this office for an opinion. The Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

NOVEMBER 1,1916. FEDERAL RESERVE BULLETIN. 609 question involved is whether a member bank in Chicago, but within the city limits, may make making a loan on city real estate may loan up to loans on real estate under authority of section one-half of the market value of the property, 24 of the Federal Reserve Act. including insurable improvements. Section 24 provides, in part, that— Section 24 of the Federal Reserve Act, as "Any national banking association not amended, reads in part as follows: situated in a central reserve city may make loans secured by improved and unencumbered "Any national banking association not situfarm land, situated within its Federal Reserve ated in a central reserve city may * * * district.". make loans secured by improved and unencumbered real estate located within one hun- This language is free from ambiguity and dred miles of the place in which such bank is while it may work a hardship on the small located, irrespective of district lines; * * * banks in the outlying districts of central reno loan made upon the security of such real serve cities, the board is without power to estate * * * shall be made for a longer grant them immunity. time than one year, nor shall the amount of any such loan * * * exceed fifty per centum As Chicago is a central reserve city, a national of the actual value of the property offered as bank located within its limits is not authorized security." by the terms of the act to make real estate It will be observed that these loans can be loans. made only upon improved real estate. It is Respectfully, clearly contemplated, therefore, that the prop- M. C. ELLIOTT, Counsel. erty offered as security shall consist of the real To W. P. G. HARDING, estate and improvements. If this were not Governor Federal Reserve Board. true Congress would not have specified that such real estate should be improved, and since the statutes specifically authorize the loans to Promissory Notes of Member Banks. the amount of 50 per cent of the property Member banks in procuring advances from their Federal offered as security, it seems entirely clear that Reserve Banks on their promissory notes, must secure such the 50 per cent valuation will apply to the real notes by paper eligible for rediscount or for purchase by Federal Reserve Banks or by bonds or notes of the United estate, together with the insurable improve- States. County warrants are not eligible as security. ments, and not merely to the real estate which could not be accepted as security without the OCTOBER 5, 1916. improvements. SIR: This office has been asked for an opinion on the question of whether or not a Federal Respectfully, Reserve Bank may make advances to its M. C. ELLIOTT, Counsel, member banks on their promissory notes To W. P. G. HARDING, secured by county warrants. Governor Federal Reserve Board. Section 13 of the Federal Eeserve Act, as amended by the Act approved September 7, Real Estate Loans by Central Reserve City National 1916, provides, in part, as follows: Banks "Any Federal Reserve Bank may make Any national bank located in the outskirts of a central advances to its member banks on their promisreserve city, but within the corporate limits of such city, sory notes for a period not exceeding 15 is not authorized under the provisions of the Federal days, * * * provided such promissory notes Reserve Act to make loans on real estate. are secured by such notes, drafts, bills of exchange, or bankers' acceptances as are eligible SEPTEMBER 27, 1916. for rediscount or for purchase by Federal Re- SIR: This office has been asked for an serve Banks under the provisions of this Act, opinion on the question of whether or not a •or by the deposit or pledge of bonds or notes national bank located in the outskirts of of the United States.7' Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

610 FEDEEAL RESERVE BULLETIN. NOVEMBER 1,1916. This section specifies in detail the forms of 259). (Also see Norton on Bills and Notes, security which may be accepted by Federal 4th ed., p. 151.) Reserve Banks as collateral security for bills The cases and text writers agree, therefore, payable discounted for member banks. that an indorsement to be valid must usually It will be observed that county warrants are be somewhere upon the instrument. The only not included in the list of securities mentioned. exception seems to be the case where the in- It is significant that while municipal and dorsement is made upon a separate piece of county warrants are dealt with elsewhere in paper attached to and made a part of the the Act, in the same section in which United original instrument. This exception appar- States bonds are made eligible for purchase by ently developed because of its necessity in Federal Reserve Banks United States bonds those cases where there was not sufficient room are mentioned in the foregoing provision while left for the indorsement on the back of the note county warrants and municipal securities are or bill. It seems, however, that, though the omitted. primary reason for the exception was lack of In the opinion of this office, therefore, there space, nevertheless, an indorsement in this is neither expressed nor implied authority for manner is valid whether or not there is any a Federal Reserve Bank to make advances to room left on the back of the instrument. any of its member banks on promissory notes In the case of Osgood's Admrs. v. Artt, supra, secured by county warrants. decided in 1883, Mr. Justice Harlan said: Respectfully, "As a general rule the legal title to negotiable M. C. ELLIOTT, Counsel. paper, payable to order, passes, according to To W. P. G. HARDING, the law merchant, only by the payee's indorse- Governor Federal Reserve Board. ment on the security itself. The only established exception to this rule is where the indorsement is made on a piece of paper, so at- Allonges, tached to the original instrument as, in effect, to become part thereof, or be incorporated into An indorsement of negotiable paper which is made upon it. This addition is called, in the adjudged a separate piece of paper attached to the original instru- cases and elementary treaties, an allonge. ment is a valid indorsement of such instrument. That device had its origin in cases where the back of the instrument had been covered with JULY 12, 1916. indorsements, or writing, leaving no room for SIR: The opinion of this office has been further indorsements thereon. But, perhaps, requested on the question of whether or not an indorsement upon a piece of paper, attached member banks, in offering paper to their in the manner indicated, would now be deemed respective Federal Reserve Banks for redis- sufficient to pass the legal title, although there may have been, in fact, room for it on the count, may indorse such paper on a separate original instrument/' piece of paper attached to the instrument to be rediscounted. Since the decision of that case the negotiable The general rule is that an indorsement, to instruments law has been adopted in 45 States. be valid, must be on the instrument itself. Section 31 of that law provides that— (Osgood's Admrs. v. Artt, 17 Fed., 575.) "The indorsement must be written on the Usually it is written on the back of the security. instrument itself or upon a paper attached It has been held, however, that an indorsement thereto. The signature of the indorser, withupon any other part of the instrument is just out additional words, is a sufficient indorsement." as valid as chough written upon its back. (Young v. Glover, 3 Jur. (N. S.), 637.) An in- It is clear, therefore, that in any State which dorsement upon the face of the instrument was has adopted the negotiable instruments law held good in Haynes v. Dubois (30 N. J. Law, an indorsement made upon a separate piece of Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

NOVEMBER 1,1916. FEDERAL RESERVE BULLETIN. 611 paper attached to the original instrument is The Federal Reserve Board, in defining the valid, and it is also probable that such an in- term "savings account'7 in Regulation D, dorsement would be valid under the common series of 1916, has provided that— law even in those few States which have not The term "savings accounts" shall be held adopted the negotiable instruments law. to include those accounts of the bank in re- Some courts in analogous cases have con- spect to which, by its printed regulations, accepted by the depositor at the time the account sidered perforation of an attached piece of is opened— paper as an indication that it was intended for (a) The pass book, certificate, or other severance and that it was therefore not really a similar form of receipt must be presented to part of the original contract (see New Bank of the bank whenever a deposit or withdrawal is Eau Claire v. Kleiner, 112 Wis., 287; Cedar made, and (6) The depositor may at any time be re- Eapids National Bank v. Barnes (Tex.), 142 quired by the bank to give notice of an in- S. W., 632). In view of these cases it would tended withdrawal not less than 30 days before seem to be advisable that the attached slips a withdrawal is made. bearing the indorsement should not be perfo- The savings accounts of the national bank rated. Furthermore, as a matter of business in question are opened under regulations prudence this slip should contain a notation printed in its pass book and agreed to in writidentifying the note to which it is attached. ing by the depositor. One of the provisions Respectfully, of those regulations is that— M. C. ELLIOTT, Counsel. " Ordinarily withdrawals of deposits will be To CHARLES S. HAMLLNT, peimitted without notice, but the bank re- Governor Federal Reserve Board. serves the right to require thirty days notice in writing of withdrawals." This provision evidently complies with clause (b) of the Board's regulation defining savings Savings Accounts as Time Deposits. accounts. Clause (a) of that regulation, however, specifies that the pass book, certificate, Savings accounts opened under regulations which do or other similar form of receipt must be prenot require the presentation of the pass book on withsented whenever a deposit or withdrawal is drawal of deposits, but which merely authorize the member bank to require the presentation of such book, are made and the bank's regulations specify merely not savings accounts within the definition of that term that '-'the bank reserves the privilege of requirin Kegulation D, series of 1916. ing the presentation of the bank book with all withdrawals of funds," and that deposits may OCTOBER 5, 1916. SIB: The attached letter from a certain be withdrawn on written order substantially national bank raises the question whether its in the form of the ordinary bank check. savings deposits may properly be considered There is no binding obligation on the depositor time deposits for the purpose of computing its to present the pass book in all events so that reserve. it is the opinion of this office that the deposits Section 19 of the Federal Reserve Act pro- in question are not savings or time deposits vides, in part, that— within the meaning of Regulation D series ? 1916. "Time deposits shall comprise all deposits Respectfully, payable after thirty days and all savings accounts and certificates of deposit which are M. C. ELLIOTT, Counsel. subject to not less than thirty days notice To W. P. G. HARDING, before payment." Governor Federal Reserve Board. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

612 FEDERAL RESERVE BULLETIN. NOVEMBER 1,1916. SUMMARY OF BUSINESS CONDITIONS OCT. 28, 1.916. District No. 1— District No. 2— District No. 3— District No. 4- District No. 5— District No. 6— Boston. New York. Philadelphia. Cleveland. Richmond. Atlanta. General business.. Very good.. Very active Good...... Very active Highly satisfactory.. Good. Crops: Condition Fair Generally light Fair Mixed; tobacco Yield below normal. Fruit crops good. harvests. splendid. Outlook. Good prices .do. Fair .: Record preparations Winter crops fair. anticipated. Industries of the Very busy. Working to ca- Very busy. Engaged to capac- Excellent, except Working to capacdistrict. pacity. ity. lumber, which ity; plenty of orpromises improve- ders booked. ment. Construction, Ahead of any pre- Building permits Fairly active. Satisfactory, except Building above the Slow, apparently building. vious year. decrease. for delays due to average for this owing to high lack of material cost of materials. and labor. Foreign trade Decreased Increasing.. Good. Exports beyond all Improving. precedent. Bank clearings... Little change .....do Increase 7 large cities in dis- Large increase, indi- Large increases. trict report 27.5 cating great activper cent increase ity. for first half of October,1916, over same period last year. Money rates Easy Firmer.... Easy Steady; no increase. 4 to 6 per cent; fair demand. Railroad, post- Increasing Increased. Increasing. Both show increases. Indicate increases... Increasing. office, and other receipts. Labor conditions.. Well employed; Unsettled. Unsettled. Scarcity; few strikes. Well employed and Satisfactory. wages high and in demand; high satisfactory. wages. Outlook.. Promising Good Good Good Most promising Bright. Remarks. Activity in prac- A period of ex- Trade brisk; conditically every traordinary ac- tions in general line. tivity in secur- very satisfactory. ities. District No. 7— District No. 8— District No. 9— District No. 10— DistrictNo.il— District No. 12— Chicago. St. Louis. Minneapolis. Kansas City. Dallas. San Francisco. General business.. Continuing activ- Very active. Still expanding Very good.. Good. ity. Crops: Conditions Fair Spotted; high Need moisture. Good Chiefly harvested. prices prevailing, Outlook. Large acreage of Fair Promising.. Short volume; high winter wheat. returns. Industries of the Actively engaged.. Very active. Active. Working to full ca- In good condition; Active,except lumdistrict. pacity. reports encourag- bering. ing. Const ruction Slow in Chicago; Increase.. Active. Building permits Much improvement 31 per cent increase and building. brisk in some increased. shown in building over 1915. manufactur ing and engineering. towns. Foreign trade.. Horses and mules Good Large increase. less than last year, grain also less than 1915. Bank clearings Increasing Increase Increasing.. Increase 50 per cent increase, 35 per cent increase Sept., 1916, over over 1915. Sept., 1915. Money rates Easy; no change.. No change; money No change; short de- Easy, with tendency Practically uneasy. mand. to decrease. changed; slightly lower tendency. Railroad, post- Post-office receipts Increase Increasing.. Increase Good increase shown Increasing. office, and other increasing. in these lines. receipts. Labor conditions., Good Fair Good Quiet; labor short- Labor well em- Somewhat unsetage continues. ployed, especially tled. unskilled, no disturbances. Outlook.. Satisfactory Bright. Good Promising Very promising Very favorable. Remarks. No change from General conditions High prices for farm previous reports. continue highly products cause ex- Manufactur ers satisfactory. cellent trade. seem to have Banks show ingood volume of crease in deposits business and largest in history. farmers pros- Collections good. perous. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

NOVEMBER 1,1916. FEDERAL RESERVE BULLETIN. 613 GENERAL BUSINESS CONDITIONS. There is given on the preceding page a sum- to 4J per cent. Town notes, fall maturities, mary of business conditions in the United 2.75 to 3 per cent; spring maturities, 3 per cent States by Federal Reserve districts. The re- to 3J per cent; 90-day bankers7 acceptances, ports are furnished by the Federal Reserve 2| per cent upward indorsed, 2-| per cent up- Agents, who are the chairmen of the boards of ward unindorsed. directors for the several districts. Below are Loans and discounts of the Boston Clearing the detailed reports as of approximately Octo- House banks on October 14 show an increase ber 23: of $18,587,000 over last month and demand deposits have increased $13,843,000 in the same DISTRICT NO. 1—BOSTON.' period. The amount adue to banks77 on Oc- The expansion .of business in general and the tober 14 was $150,161,000 as compared with increase in retail trade continues unabated; $130,044,000 on September 16. The excess rewhile the current tendency seems to be toward serve of these banks increased from $26,940,000 even greater activity and higher prices, rather on September 16 to $36,168,000 on October 14. than toward any slackening of demand. Exchanges of the Boston Clearing House for High and increasing cost of everything used the week ending October 14 were $189,721,963 in manufacturing is the most pronounced fea- as compared with $203,964,782 for the correture in the situation. Raw materials of prac- sponding week last year and $186,433,957 for tically every kind are scarce and any special the week ending September 16. demand raises prices at once. This has been Building and engineering operations in New well illustrated in leather, where the efforts of England continue to set a new high record. domestic manufacturers of leather goods and From January -1 to October 18 these contracts shoes to cover their requirements on contracts amounted to $168,003,000 as compared with have shown the market to be practically bare $141,914,000 for the corresponding period of of some kinds of leather and have forced prices 1915, and $155,203,000 for the same period in upward 10 per cent or 15 per cent in two or 1912, the best previous year on record. three weeks. Manufacturers of all kinds of Exports from the port of Boston for Sepgoods have therefore become cautious about tember, 1918, amounted to $15,091,461 as commaking future contracts until they can see pared with $17,678,230 for August, 1916, and their way clear to secure the materials needed $7,177,360 for September, 1915. Imports for to cover. The effect of this condition on the September, 1918, amounted to $9,148,998, a jobber, retailer, and even the consumer is to decrease of $2,023,886 from August, 1916, and lead him to stock up before prices advance a decrease of $3,097,535 from September, 1915. further. As labor is being well employed at The receipts of the Boston post office for increased wages and as the farmers are secur- September, 1916, show an increase of only ing good prices for their crops, the buying $12,000, or less than 2 per cent over Septempower of this district has been materially inber, 1915. For the first 15 days of October creased and retailers everywhere are reporting receipts were about 9 per cent, or $30,000 over exceptionally good business. the corresponding period last year. The money market continues dull and easy, The Boston & Maine Railroad reports net with no apparent change. Call money, 3 per operating income, after taxes, for August, cent; six months7 money, 3J per cent to 3| per 1916, as $1,703,943 as compared with $1,270,930 •cent, with exceptions at 3J per cent and some for the corresponding month of 1915. The business at 4 per cent; year money, 4 per cent New York, New Haven & Hartford Railroad Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

614 FEDERAL BESERVE BULLETIN. NOVEMBER lf 1916. reports net operating income, after taxes, for coming in from Africa and South America, but August, 1916, as $2,366,073, as compared with little or none from Australia or the other British $2,114,540 for the same month last year. One colonies. The woolen and worsted mills are of the larger railroad systems states that there running as full as practicable, the worsted are about 15 per cent more freight cars on its mills being retarded to some extent by the lines than normal, but that the number now high price of wool required for that industry. is about 20 per cent under what it was at the It is said that this is the best high-price wool time of the embargo last spring. market we have had for a great many years. Now that the harvest is in, reports indicate In the cotton-goods industry conditions are that the results are about as estimated a month practically the reverse of what they were in or two ago. The hay crop was well above nor- 1914. At that time manufacturers were well mal. The apple production is about 75 per Supplied with finished goods and were glad to cent of normal with a great deal of apple scab make even small sales. At present the mills and the quality generally not up to the average. have practically no finished goods for spot The grain and oat crop was comparatively delivery and buyers must content themselves light. The prevailing high price for potatoes with making future contracts. It is now the more than offsets the deficienc}^ in the yield, buyer and not the seller who is urging business. which was not as great as it has been in some Cloth brokers are visiting mills and in many years past. The cranberry crop is small, due instances are willing to make contracts for to wet weather in the early spring. delivery starting late next spring and running well into the summer. Manufacturers who The uncertainty in the leather situation and have been through similar periods are exercisthe rapid rise in prices has been very disconing caution against the day when they may certing to boot and shoe manufacturers. find themselves with high cost materials on They are running their factories at full capacity hand and contracts for their goods canceled. and are taking care of their regular customers With this in view they are reluctant to make for some months in advance. Beyond this commitments as far ahead as the buyers desire. they have no idea what prices to ask in order This is of course natural, in a rising market, to protect themselves. Retailers are buying when purchasers can see a profit in everything all that the factories can produce and the they have bought. It has been some years larger manufacturers are distributing their since new mills in any considerable number output in proportion to the amount purchased have been built, but now in New Bedford alone by the retailer and jobber in former years. three or four mills are in the process of erection Collections are very good and this would seem which will add hundreds of thousands of new to indicate that goods are being sold to the spindles to that city's capacity and bring in ultimate consumer and not retained on the many new operatives. Mill stocks have inshelves of the retailer. creased materially in value and price during The dry goods business continues active. the last year and on the average are selling The most serious problem confronting the dry higher than for some years past, while in many goods merchant is the prices asked for advanced instances they are establishing new high recorders and he is in doubt whether to purchase ords. While the price of cotton goods at retail now and risk a drop in prices before he receives has advanced, it has not kept pace with the and sells the goods or wait for lower prices and increased production cost nor with the prices perhaps be unable to get the goods later. being obtained by manufacturers. Therefore, Wool prices are strong, but dealers feel that when jobbers and retailers reach the end of the advance is legitimate and the purchasers, their stocks, purchased many months ago at for the most part, are buying to cover con- lower prices, radical price increases will probtracts. The situation in regard to the import- ably be necessary unless, in the meantime, ing of wool has not changed. Some wool is there is some decided change in the situation. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

NOVEMBER 1,1916. FEDERAL RESEEVE BULLETIN. 615 DISTRICT NO. 2--NEW YORK. Jewelers report that sales and collections are In spite of the existing high prices remark- satisfactory. Shipyards are very busy. They able activity continues in most lines of business are reported to be buying supplies for delivery with a general tendency toward further ex- as far ahead as the spring of 1918. Meat pansion. Manufacturers are unable to keep packers report satisfactory conditions in the pace with their orders, being handicapped by domestic market and a steady volume of exlabor shortage and other deterrents. port trade from this port. The building trade Business in both wholesale and retail markets in New York City has been quiet, statistics for has been stimulated by more seasonable September showing a decrease from last year weather. In the wholesale trade, buying for of $2,859,349. Dealers in building materials next spring shows some conservatism. De- report small sales and abnormally high prices. partment stores report a slight falling off in The scarcity of freight cars in all classes of collections, but expect, in the near future, an equipment became more acute during Septemimprovement in this condition together with a ber, the net shortage on the railroads of the material increase in sales. Retail clothing country having increased from 19,873 cars to stores are doing a large volume of business. 61,030 cars. The cotton goods trade is prosperous al- Recent developments of importance in the though the price of raw materials is very high labor situation have been the settlement of and the mills have been unable to run to the controversy between the milk distributers capacity because of the scarcity of labor. In and producers and the outbreak of a serious the white goods line, both sales and collections strike among the workers in several large oil are good. Demand for woolen goods is strong. plants in Baj^onne, N. J. The retail concerns in this line are placing The New York Stock Exchange is passing large orders with the wholesale dealers. through a period of extraordinary activity on In the leather market there is a heavy de- a rising market. Transactions in stocks, in mand for raw materials and a continued rise in September, totaled 30,096,390 shares comprices, which is reflected in the higher cost of pared with 18,558,765 in September, 1915. manufactured goods. Bonds sold during the month amounted to The metal trades are very active. Heavy $96,384,000 par value against $81,171,000 in buying continues in iron and steel, the decrease the same month last year. in September of 137,773 tons in the unfilled Exchanges through the New York Clearing orders of the largest producer being accounted House for the year" ended September 30 agfor by better working conditions and a con- gregated $147,180,709,461. This represents the sequent increase in shipments. Active buying most active year in the- existence of the associaby railroads of cars and other equipment is tion, the above? figures showing an increase reported. Electrical supplies and equipment over last year's total of $56,338,001,738 and are in good demand. A large concern in this surpassing the previous record year of 1906 by line reports that the mills are running to $43,426,609,370. On October 14 members of capacity with more orders on hand than they the New York Clearing House reported loans, are able to fill. The position of the copper etc., $3,337,732,000, deposits $3,436,939,000, market is very strong, owing to large purchases excess reserve $68,914,410. Since September by foreign governments. A large volume of 2 loans have increased $45,395,000, deposits business is reported in paints, drugs, and increased $12,170,000, and excess reserve dechemicals. Conditions in the furniture trade creased $26,914,730. are excellent, orders being plentiful and collec- Statistics for September, compared.with the tions good. There are no labor troubles, and corresponding month of last year, show large very few failures have occurred in this line. increases in New York City bank clearings,, 66559°—16 5 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

616 FEDERAL RESEBVE BULLETIN. NOVEMBER 1,1916. postal receipts, and exports and imports. Railroad at Lewistown Junction compared Foreign trade and ocean passenger traffic was with the same months of the previous year: disturbed by submarine activities. January, 844; February, 395; March, 331; Failures in New York State during September April, 239; May, 877; June, 397; July, 457; show a reduction of 73 in number and $2,026,351 August, 276; September, 204. in liabilities from September, 1915. Clothing concerns in Philadelphia report that Call money rates were slightly firmer in standard manufacturers have more business September, ranging from 2 per cent to 3 per than they can care for, due to the extracent. Early in October call money touched ordinary demand on the part of retailers and 4 per cent for the first time since July and is a lack of supplies from the fabric makers. now being quoted from 2J per cent to 3 per Some orders* for cloth placed 12 months ago cent. Time loans on collateral ruled higher in are not yet completed. The situation in some September and October. There was no change markets is so bad that the tailor shops have in the rate for prime bankers' acceptances been forced to run on half time. eligible for discount at the Federal Reserve In the coal market anthracite continues Bank, quotations being 2f per cent to 2| per strong and steady, with demands greater cent for 90-day bills. Commercial paper sold than offerings. Bituminous is in active reat 3^ to 4 per cent in September and at 3J to quest, with supplies light because the scarcity 4 per cent in October. of labor is limiting production. The rail- Sterling exchange exhibited only fractional roads, steel plants, and large manufacturing changes during September and October. Francs concerns are buying freely at steadily advancwere stronger, being quoted at 5.83f for checks ing prices. The chief factors in the coal situain the latter part of September. This month tion seem to be the great scarcity of labor and franc checks have been quoted between 5.84 the shortage of cars, which conditions are and 5.85. Compared with August quotations tending to seriously curtail production.. There marks and guilders have declined while rubles was a decrease of 7,554 eastbound cars on the have advanced. Pennsylvania Railroad at Lewistown Junction carrying bituminous coal during Sep- DISTRICT NO. 3—PHILADELPHIA. tember compared with the same month of Business conditions, as reported throughout 1915. The production of coke is still far under the district, continue good beyond precedent, the demand, and record prices are being ofthe only complaint being the scarcity of fered for the limited output. some kinds of raw materials and the shortage Fairly good crop yields and excellent prices and high wages for both competent and ordi- have resulted in a general condition of nary labor. prosperity among the farmers. The high The distribution of merchandise is pro- prices received by the tobacco growers in ceeding along very satisfactory lines, the Lancaster County for this year's crop have weather having been of material benefit to caused them to plan for an increased acreage retail trade, and retailers are preparing for the in 1917. There is a scarcity of leaf at present. heaviest Christmas trade in their experience. Bradstreets report 73 failures in the dis- Wholesalers report that orders for immediate trict during September, compared with 65 and future delivery of fall and winter commodi- in August, 48 in May, and 103 in February, ties are being placed in very liberal volume. the May and February figures being the low Manufacturers in all lines continue extremely and high, respectively, for the year. busy. Business in groceries is good, but the high The railroad freight-car shortage is a serious prices have curtailed profits. A shortage is factor, as shown by the following decreases in reported in canned goods, especially tomatoes eastbound empty cars on the Pennsylvania and corn, which has sent prices upward along Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

NOVEMBER 1,1916. FEDERAL RESERVE BULLETIN. 617 with other commodities. Rice is probably culty in obtaining labor and the high the single exception to the general rising prices of materials still occasion delay in the prices. • Scarcity of cheese and other dairy starting of many new projects. A feature of products is also evidenced in rising prices, building construction has been the comparaand the price of milk to the consumer has tively large number of new bank buildings already been raised in many localities. during the past year. Five are now being The activity and rise in pig iron have been erected in Philadelphia, in the heart of the the feature of the iron and steel market during city, within a radius of three blocks. the past month, for which the renewed export Exports during September were valued at demand is in part responsible. Activity in $44,377,000, exceeding by $7,363,000 those of steel products continues with even increasing the preceding month, and are the largest in pressure. Heavy buying for the first half of the history of the port. During the same 1917, and in some cases for the entire year, month of last year, exports amounted to only is reported. A scarcity of labor continues to $9,720,000. Import values amounted to make it difficult for plants to keep up their $6,806,000, which is $1,400,000 less than the deliveries. Steel plate makers are sold ahead imports during August of this year. In Sepfor the latter part of 1917, and even into 1918. tember, 1915, imports amounted to $4,814,000. Orders for business from foreign countries have Continued rise in the price of cotton and been refused because of domestic pressure. cotton goods during the past month has feat- The markets for leather and glazed kid are ured the market. Cautious buying, however, extremely firm, tanners and dealers having is the tendency. The weaving mills are in the reached the point where they must refuse market only to supply their present needs. orders because no leather is available to fill The upholstery mills report dullness. The them. Many tanners of heavy leather are uncertainty of the situation has been reflected sold up until the end of this year, and in cautious buying of wool. The mills have some concerns beyond that period. America no stock of yarns on hand, and throughout is supplying most of the world with leather, the country there is but a small quantity it being estimated that from 85 to 90 per of goods on the shelves. The policy of recent of all the tanning is now done in this stricted buying is giving way to a freer method, country. The demand from abroad is un- for the chance of cheaper wool before the close abated, and cable inquiries are numerous and of the European war seems slight. Local urgent. With the enormous quantities going carpet and rug mills are running only about out of the country, domestic buyers are facing 75 per cent capacity. The knit-goods trade famine conditions, and are dependent on tan- has continued very good. There is a scarcity ners' policy in caring for customers. A real of such goods and they find a ready market. hide shortage, due largely to England's activity Four new knitting mills have been started in in buying up all South American hides avail- this district during the past two months. able during the next few months, is aggravat- Expansion in the silk trade is also evidenced ing the already acute situation. With the by the establishment of six new mills. Artibrisk inquiry for all grades of stock, together ficial silk manufacturing concerns report an with only moderate supplies available, prices exceptionally good condition. tend strongly upward. The supply of loanable funds in the banks The movement of lumber is about normal, continues large, and the rates for money easy. but prices show an upward trend owing to lack of adequate transportation facilities, DISTRICT NO. 4—CLEVELAND. which renders it difficult to maintain stocks Conditions in this district have been accenin some grades. The building industry tuated in the past four weeks. To say that the is in fair condition, although the diffi- activity in nearly all lines is on a scale now Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

618 FEDERAL RESERVE BULLETIN. NOVEMBER 1,19IG. recognized as the greatest ever experienced crease in their domestic business. The window briefly summarizes the situation. glass and plate glass industries are enjoying a A long dry summer and fall has somewhat large business and earning substantial profits. interfered with seeding operations, and farmers There is no slackening in the automobile and claim that much small grain planted has not rubber industries. Many new automobile and taken root. Tobacco is now entirely housed, accessory companies have arisen in the disand a great deal of it is almost ready for market. trict, and a number of established companies It was a good crop. The sugar-beet crop will are increasing their plants, output, and'capital. be short owing to the drought. A great many There are slight indications, however, of some farmers who usually buy cattle to feed will not readjustment in this industry. Whether this buy this fall on account of poor pasture and shall take place in price or radical changes in general shortage of fall feed. construction where a decrease in popularity Prices of iron ore and pig iron have advanced has been observed, is not yet evident. for spot delivery. The most serious problem The car shortage situation is the principal in these lines is car shortage, causing delay at problem of the railroads, and is little imthe docks. Lumber demand and inquiries con- proved as compared with 1915. The loads tinue fairly good. billed from stations in this district show 11 So far as price and demand are concerned the per cent increase. Traction traffic is above bituminous coal trade is in better condition normal for this season. The annual report of than.it has been since the anthracite strike in a large take ship-building concern illustrates 1903. The companies, however, are hampered the unusual prosperity in the lake trade. The in making deliveries owing to scarcity of rail- company completed contracts for the year road equipment, both cars and motive power, ending June 30 for boats aggregating 37,000 as well as inability to obtain sufficient labor. tons, while at the end of the fiscal year it had There is a tremendous shortage of coal in the orders for an additional 195,000 tons. Northwest. Prices at the mine have been Jobbers in shoes, dry goods, clothing, carfrom $2.15 to $3.50 per ton, and show the ex- pets, etc., report excellent business. Prices citement which prevails in the market. It is are steadily advancing, and indications for a reported that some industrial concerns have continuance of present business are encouraging. been forced to use their storage coal which is Colder weather has given an impetus to retail carried from year to year for emergencies. trade, and merchants generally throughout the Furnace coke demand is in excess of the supply. district are enthusiastic over the situation. In Crude oil and gas operators are more active the larger centers the volume of sales shows an even than early in the spring when oil reached estimated increase of 12 per cent over the pre- $2.60 a barrel. vious maximum at this season. Theaters as Additional strength is seen in the iron and well as other places of amusement report large steel market. There is no diminution in the receipts. Post office receipts and comparisons volume of demand, and many of the railroads are as follows: have come into the market for such cars as they could obtain with reasonable promptness. Sept., 1916. Sept., 1915. Increase. Per cent of Structural steel has advanced $2 a ton, and increase. a spectacular advance to $18 a ton in heavy $59,654 $50,231 $9,423: 18.7 melting steel has occurred. If severe weather Cincinnati 255,761 247,083 8,678 3.5 Cleveland... 319,015 296,594 22,421 7.5 conditions should be added to present labor Columbus 105,927 99,607 6,320 6.3 Pittsburgh 357,931 336,563 21,368 6.3 and car difficulties the results might, at least Toledo: 93,432 85,978 7,454 8.6 Youngstown......... 26,122 21,891 4; 231 19.3 temporarily, be very serious. Electrical and Total.... 1,217,842 1,137,947 , 79,895 7.0 other equipment plants report a decided in- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

NOVEMBER 1,1916. FEDERAL RESERVE BULLETIN. 619 Labor is scarce in nearly all specialized lines. smallest retail dealer, thus affecting collections Labor is scarce in the coal fields and skilled favorably. workers still can find employment in the mills. Banking transactions have been especially Workers are being brought in from other parts heavy throughout the month. The money of the country to relieve the stringency in the market is somewhat steadier, but there are idle labor market. There are few disturbances or funds in many parts of the district. New strikes, and a number of wage advances. financing continues in all the centers. In- Window glass factories announced a 10 percreased purchases of securities is in evidence. cent to 20 per cent advance for unskilled labor. One unsatisfactory feature is the tendency of al- Scarcity of rentable buildings and a tendency most every group in our communities, business toward higher rents are reported by real estate and professional, to pay large attention to dealers. Much new construction work, es- fluctuations in securities markets. Deposits in pecially among industrial plants, is from four banks are increasing. Member banks in the to six months behind schedule time for com- four reserve cities of this district showed an inpletion. There is a brisk demand for small crease of fift}^ millions from May to September. houses, and contractors are doing a good busi- Clearings are running large, as will be indicated ness in the medium grade of dwellings. Below by the appended table. Akron has been added are the building figures for seven large cities to the list for this month, and in next month's in the district. report will be included figures from the city of Dayton. Permits issued. Valuations. Per cent S 1 e 9 p 16 t. . , S 1 e 9 p 15 t. . , S 1 e 91 p 6 t . ., S 1 e 9 p 15 t. . , d I e n c c r o r e e r a a s s e e . d in ec c r o r e e r a a s s e e . Oct. 1 to 15. Increase. P c e o r r e f a c i s n e e - n . t 1916 1915 Akron 556 239 81,893,740 $381,925 $11,511,815 Cincinnati 1,260 1,303 847,515 1,264,444 1416,929 132.9 Akron 837,000 $5,110,000 $4,727,000 92.5 Cleveland. 1,339 1,147 2,713,780 2,356,620 357,160 15.1 Cincinnati... 359,400 62,226,250 7,133,150 11.4 Columbus. 274 262 548,065 504,710 43,355 8.5 Cleveland... 752,272 78,538,845 42,213,427 53.7 Pittsburgh 424 278 1,407,094 2,238,415 1831,321 137.1 Columbus... 428,000 15,987,500 6,440,500 40.2 Toledo 382 257 676,836 701,648 i 24,812 *3.5 Pittsburgh.. 496,426 122,419,584 14,076,842 11.4 Youngstown 124 102 395,245 164,430 230,815 140.3 Toledo 546,704 16,671,149 6,875,555 41.2 Youngstown 141,657 4,435,800 2,705,857 61.0 Total. 4,359 3,588 8,482,275 7,612,192 870,083 11.4 Total.. 389,561,459 305,389,128 84,172,331 27.5 Permits issued Valuations for year ending— Increase Per cent DISTRICT NO. 5—RICHMOND. or increase Sept. Sept. Sept. Sept. decrease. dec o re r ase. With the exception of an occasional adverse 30, 1916.30, 1915. 30, 1916. 30, 1915. report in some special case, and unfavorable conditions in one or two localities where flood Akron 4,541 1,943 $91,886,368 $4246,445 $5i,, 639,923 132.8 Cincinnati. 16,304 15,34011,004,61012;203,173 1,198,563 19.8 and weather conditions have brought disas- Cleveland.. 13,747 13,917 301;,429,72129;778,369 651,352 2.1 Columbus.. 3,119 2,653 6,709,680 071,855 637,825 10.5 trous crop results, the story of prosperity is re- Pittsburgh. 4,159 3,7151.55;,496,16614 699,434 796,732 5.4 Toledo 4,093 2,649 9,634,996 683,508 2,951,488 44.1 iterated from all parts of the fifth district. The Youngstown 1,271 1,— 3,415,099 913,395 501,704 17.2 reports indicate only a fair general average of Total. 47,234 41,256 86,576,640 76,596,179 9,980,461 13.0 crops, but such high prices that the net is far 1 Decrease. above the usual returns. In fact, the high Reports are universally satisfactory with re- prices bring many comments as to the high cost spect to collections. One leading company re- of living, and expressions of serious doubt as to ports as a feature the constantly increasing how labor is to support itself, notwithstanding number of discounting customers, stating that high wages. a. greater percentage of customers are paying The markets are fairly well supplied with cash than ever before in the history of the con- food crops of the small varieties, such as beans, cern. Prosperity has now extended to the sweet potatoes, turnips, and other vegetables, Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

620 FEDERAL RESERVE BULLETIN. NOVEMBER 1,1916. and all are bringing good prices. The fall crop West Virginia reports an increase of 20 per of Irish potatoes is only fair, but is selling at cent in its product. $3.50 to $4 per barrel. Farmers are in a better Reports indicate generally only fair fruit position financially than ever before, as the re- crops, but prices, as in other lines, are high, and sult of good crops and high prices, and are re- the net result promises to be very satisfactory. ported buying automobiles "as never before." The total apple crop of the United States is There seems to be a steady ingress of home- reported about 15 per cent short of last year's seekers, the clearing of a large acreage of virgin yield, and the growers in this district report soil, and preparation for a large increase in the buyers in their market from Northern, Cenacreage under cultivation. Building shows tral, and Eastern States where the crop is short. more activity than last year, and there is a The demand for merchandise continues acconsiderable volume of new work under way. tive, collections good, and trade is limited only Upper Maryland reports a good crop of corn by the difficulty of obtaining satisfactory deand full prices. West Virginia reports a good livery of goods. It is reported difficult to corn crop, and also refers to their "splendid replace goods on the former basis of cost. potato crop," and uwheat above the ordinary.7' Merchants generally, however, express satis- Eastern North Carolina reports crops above faction with present conditions. the average. Conditions in other territory are Labor seems to be generally well employed spotted, some sections reporting serious dam- at good wages and satisfied. Shortage is reage resulting from flood and weather con- ported in some lines, particularly at the coal ditions. mines. The cotton crop is generally reported short, Great interest in livestock continues, indithe best sections estimating only a 50 per cent cating a steady increase in the product. One to 60 per cent yield. The staple, however, is railway company reports the establishment of bringing 16 cents to 18 cents per pound, the 11 cattle and hog ranches on its lines. Packhighest price since the Civil War, which more ing business is reported good. than makes a handsome return, notwithstand- A few reports indicate fair conditions in ing the shortage in quantity. Each bale of lumber with some improvement, but the trade cotton, including seed, which is also bringing does not seem to share in the general proshigh prices, is worth over $100 per bale. The perity. total value of the crop is estimated at over Demand for castings is heavy and foundries one billion dollars. Some few counties in are taxed to capacity, but piping is reported South Carolina are reliably reported as gath- quiet, prices very high and buyers disposed to ering only a 25 per cent to 30 per cent crop, hold off for lower prices. One manufacturer and these sections will hardly be able to pay of small hardware reports business still below this year's bills, with nothing left over with normal and prices unsatisfactory. which to start next year's crops. There is a universal report of very satisfac- The peanut crop, which is a very consider- tory cotton textile business, with mills runable commercial factor in this section, indicates ning on full or extra time and the output an average yield slightly below normal, but readily disposed of at satisfactory prices. The the quality is good and the demand good at high price of cotton affects the producing cost, fair prices. but prices of goods have apparently advanced The tobacco crop is reported short and in sufficiently for operations to continue on a some sections, light in weight, but prices show satisfactory basis. an increase of 100 per cent or more over last Exports from the district show an increase year, the cheaper grades being in especially of 130 per cent over last year. This increase good demand and bringing exceptional prices. is represented by mules, iron and steel manu- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

NOVEMBER 1,1916. FEDERAL RESERVE BULLETIN. 621 factures, cotton, grain, some food products, port News, which is one of the greatest in the and other miscellaneous articles. country, is reported full of orders and working Port shipments of coal show a decrease from to capacity. 1,650,000 tons in August to 1,400,000 tons in An officer of one of our largest metropolitan September. The falling off has been due to banks who has just completed a trip through, labor conditions at mines and to car shortage. the South is reported to have said: "The These conditions have resulted in higher prices, South, in my opinion, is getting on a sounder ranging from $4.50 to $5 per ton. There are credit footing than ever before, and my feeling indications of some improvement in labor con- is that these sections are about to enter the ditions, particularly in the Georges Creek and best and most prosperous epoch in their his- Fairmont region in West Virginia reached by tory. I look for a great advancement in popthe Baltimore & Ohio and Western Maryland ulation, wealth, and the average conditions of Roads. West Virginia reports conditions in life within the next decade. One of the importhe neighborhood of the mines as exceedingly tant factors in this will be a greater abundance good, a vast quantity of coal being produced of money and cheaper average interest rates. at high prices and mining conditions prosper- This territory produces real wealth—the conous, notwithstanding some scarcity of labor. sumable commodities which the world must Railroad earnings are showing a decided have—and, with better methods in the future, improvement, the greatest improvement being is bound to become very rich and populous. on the Norfolk & Western Railroad from its Conditions, in my opinion, are now distinctly coal traffic. One of the large lines in the South on the upgrade, and the outlook never more serving a largely agricultural section reports a consistent for a return to real, genuine prospressing demand for 1,500 cars, which it is hav- perity on a rock-bottom basis/7 ing difficulty in furnishing. Out of 30,000 of DISTRICT NO. 6—ATLANTA. its own cars, 16,000 are absent on other lines, and has in return only 8,000 foreign cars on its Reports both as to agriculture and almost all own line, reducing its own supply to 22,000. other lines of industry indicate extraordinarily Postal receipts indicate an increase of 8 per bright prospects for the coming autumn and cent over last year and money orders 22 per winter trade. While there are some slight discent. turbances, due to strikes of railway employees Banks are generally reporting an increase in at Atlanta and certain other points, the labor deposits, most of them ranging from 25 per conditions as a whole are very satisfactory. cent to 50 per cent. Demand for money is Though the crop season, now drawing to a active but there is plenty of it and rates are close, was productive of short crops, the situlow. Mills are purchasing cotton freely and ation is optimistic in view of the prevailing require considerable accommodation for the high prices. accumulation of stock, and there is apparently Based upon a short crop and estimated large a considerable demand from farmers for the consumption, cotton, the leading staple of the purpose of holding cotton, notwithstanding the district, has passed the 18-cent level and there extraordinary high prices. seems to be no sign of slackening in the demand. Clearings indicate great activity and a large In view of the reported advance in the manuincrease in business over the corresponding factured product, domestic spinners are free period for last year. Clearings have increased purchasers and with large orders on hand the 33 per cent. mills are not inclined to sell further ahead with- There is general activity in every line of out keeping up their supply of raw material, business, the people being optimistic as to the and 20-cent cotton is freely predicted before future outlook. The shipbuilding plant at New- another crop can be marketed. The weather Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

622 FEDERAL RESERVE BULLETIN. NOVEMBER 1,1916. has been very favorable and reports indicate unusually large crop has been housed, and the that 70 per cent of the cotton has been picked quality is about average. The buyers are and ginned. With cotton selling at $90 per among the farmers, paying high prices ranging bale, and cotton seed averaging $54 per ton, from $6 for the lugs to $13 for the leaf. The bringing the farmer $117 per bale, they are tobacco raised in this district is largely for inclined to sell their product and liquidate their export use, and with the export facilities more indebtedness. favorable, business is expected to show a great The boll weevil damaged the crop consider- improvement over any time since the beginably this year, due to the July storm and wet ning of the European war. Florida reports a season following, and reports indicate consid- full crop of tobacco, with the quality good.. erable spread of the weevil. . Dry weather has About three and a half million pounds of cigar prevented the plowing under of the cotton wrapper tobacco is the extent of the crop. stalk to destroy the weevil, but preparations The present condition of the citrus crops of are being made throughout the district to com- Florida appears to be the same number of boxes bat it. The history of the boil weevil north of oranges that were shipped last season, and of 33|° north latitude indicate that in normal grapefruit probably 75 to 80 per cent of last years no great damage may be expected and, season's output. The fruit is a better quality although the heavy rains in July are generally than last year and the sizes will run very deconducive to its spread, reports indicate that sirably in oranges, but on account of the very the pest does not seem to be thriving in that short crop grapefruit will probably run to part of our district. larger sizes than last season, on the whole. With the dry weather for the past 30 days Last season the fruit shipments were 5,598 it has been almost impossible to plow and cars of grapefruit and 17,836 cars of oranges, seed winter grains and grasses, and very little aggregating approximately 8,250,000 boxes. progress has been made. August and Septem- The shipments for this season will be, as near ber sown grains and grasses have been con- as we can tell at the present time, 7,750,000 siderably damaged by the drought. The corn boxes of grapefruit, oranges, and tangerines. crop in the district is about normal, and the The securing of an authentic estimate of the season proved favorable to pasture and hay size of the season's crop is quite difficult, for crops. the reason that there are crops from seven There has been marked increase in cattle and different blossoms on the tree at the same hogs throughout the district during the past time, while the fruit is of different sizes, which year, and it is freely predicted th&t the '' smoke- makes it exceedingly hard to estimate the exhouse7' of other days will again become a fix- act number of boxes to be produced. ture on every southern farm. With the recent Business continues brisk in all industrial establishment of packing houses in Tampa, lines, being retarded only by the serious car Fla., Andalusia, Ala., Statesboro, Ga., Jack- shortage. The pig-iron market is strong, and sonville, Fla., and movement under way to orders exceed the output. Foundry iron is establish such plants at Macon, Ga., Tifton, selling from $15.50 to $16 per ton, and it is Ga., Augusta, Ga,, and other points, an impetus reported that an advance is imminent. A few has been given to the interest displayed by the furnaces in the Birmingham district for the farmers in this diversification. That there is first time in their history are turning out basic an increased awakening along this line has been iron, which is in demand with the strong marshown by the building of silos, and the interest ket for steel. displayed at the recent live-stock shows Yellow pine has strengthened materially as throughout the district. to price within the past 30 days. Demand has Exceedingly favorable reports come from been active, reaching at least normal proporthe dark-tobacco district of Tennessee. An tions as to volume for the season, and this fact Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

NOVEMBER 1,1916. FEDERAL RESERVE BULLETIN. 623 coupled with the slow shipments due to car in cotton and naval stores, making a new daily shortage is no doubt responsible for the ad- record for this port. vance in value. Production is evidently con- Building permits issued in 12 of the more siderably below normal, and in view of the fact important cities of the district from September that the volume of shipments is so seriously re- 1 to October 15 show an aggregate decrease of stricted by car shortage we doubt if there will $200,000 over the corresponding period of the be any tendency to increase output in the next previous year. 90 days. The average price, however, is even Bank clearings throughout the district show now at least $1 per thousand below normal. a continued increase. Eeports from clearing The percentage of increase in cost is more than houses in 10 of the principal points in the disthe percentage of advance in price, notwith- trict for the week ended October 14, 1916, standing the fact of large advances in price in show an aggregate inciease in clearings of almost every other kind of building material. $31,000,000 over the corresponding period. Business continues strong in the retail and Collections are naturally greatly increased wholesale lines, some difficulty being experi- by general conditions. All lines report better enced in securing goods. Merchants report collections than for many years past. that the mills do not appear to be making much A conference between the coal operators and headway in catching up with their orders. railways was recently held with a view of Prices are advancing to the point where profits relieving the car shortage. One of the main are being considerably affected. Shoe manu- railways'of the district reports "all the box facturers report more foreign buyers for shoes cars to-day on our line are just a little more and leather than ever known before, due to the than 40 per cent of the number of cars this railfact that most of the European shoe factories way individually owns. Ail the cars of every have been commandeered by the military au- class on our line at this time about 54 per cent thorities and are making army shoes. Prices of the number we individually own." While are exceedingly high, and a return of cheap exact figures are not available it is known that leather is not expected for some years to come. the railroads supplying the operators of coal Port business continues to increase. The cars in this district have less than 60 per cent Tampa customhouse reports show consid- of their equipment on their own lines. All erable advance over last year. In internal railway lines report a somewhat similar condirevenue figures Tampa also shows a gain with tion, but notwithstanding this car shortage, a total of $726,140 for nine months, whereas they report increased freight earnings from 10 the same months a year ago yielded the Govern- to 15 per cent over the earnings of previous ment $659,575. At Savannah the imports year. from September 1 to October 15, 1916, show a The car shortage is of such a serious nature total of $400,783, as compared with $237,508 that many plants fear a shutdown for lack of for the same period of 1915. Exports for this coal. Buyers and jobbers of coal are going period in the year 1916 show a total of to the mines and bidding for coal as loaded. $9,717,554, as compaisd with $5,840,555 for Steam coal is quoted at $3 to $3.50 at the the same period of the previous year. The mines near Birmingham, which in normal port of Mobile for the period September 1 to times sells for $1.25 per ton. The mines con- October 15, 1916, shows exports of $4,674,636, tinue to operate only part of the time, not havas compared with $2,063,867 for the same pe- ing cars for loading, and coal operators see no riod in the year 1915; while their imports show relief in the very near future as the coal cars $290,147 for the period 1916, as compared are not on southern lines. with $599,242 for the same period 1915. Large The New Orleans branch of the Federal increases are also reported from Savannah. Reserve Bank reports as follows concerning On a recent date the exports were $4,000,000 conditions in Mississippi and Louisiana: "Ex- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

624 FEDERAL RESERVE BULLETIN. NOVEMBER 1,1916. ports from New Orleans during September, so much damage around New Orleans during 1916, were worth $6,000,000 more than during September of a year ago. Although we have the same month ot last year. Imports de- had a number of severe storms this year, five creased from $6,755,934 to $5,526,861. Ship- since July 5, some of which were very damaging ments to Porto Rico decreased from $584,165 in the Southern States, Louisiana has escaped to $523,551. The falling off of imports is the storm injury caused elsewhere. The indilargely due to lack of shipping between the cations are of good crops harvested early and port and Brazil. marketed under the most favorable conditions; Incoming coffee fell below the totals for and with their marketing must come increased many years; while nearly 37,000,000 pounds business activity in every line. were imported in September, 1915, only Storms and floods which poured an over- 16,759,378 pounds came in last month. The supply of fresh water into the Mississippi principal articles of import during the month Sound, have damaged the oyster beds along were nitrate of soda, 20,848 tons, valued at the Mississippi coast and cut down the yield $857,657; sisal grass, 7,339 tons, valued at very heavily. Like conditions are reported $917,189; bananas, 1,651,000 bunches, valued from the Alabama beds, some of the reefs in at $484,411; pig iron, 938 tons, valued at Mobile Bay having been virtually destroyed. $40,781; mineral oil, 3,085,448 gallons, valued Curtailment of the oyster production from at $25,930; mahogany, 625,000 feet, valued at these fields naturally gives the Louisiana $43,601; molasses, 1,049,700 gallons,.valued at oyster a chance to capture new markets. $104,979; sugar, 28,393,474 pounds, valued at Already, local dealers report, demand has regis- $1,160,438. ' tered a marked gain, and orders are coming in It is announced that the harvest season, as from a wider territory than ever before. The far as it had progressed in Louisiana, has been predictions that shipments will be doubled thi^ most satisfactory, and that the promise is that year seems to be justified and conservative, most of our splendid crop expectations will be for the oyster's place upon the American bill realized. The rice harvest, for instance, has of fare is secure and the demand grows norbeen satisfactory as compared with other years, mally year to year. and the very dry weather that has prevailed has helped the rice growers to cut and gather DISTRICT NO. 7 -CHICAGO. the product, so that the work is well in advance Continuing activity is strongly in evidence of the same period last year and of previous in this district and in practically all lines. The years in the yield per acre and the smaller cost banks have funds in ample supply for all of hai vesting. legitimate demands, interest rates are low, Not only is rice ahead of time and the har- and the country communities have shown vesting condition most satisfactory, but cane themselves able to care for their own requirealso is promising. A number of sugar houses ments to a, great extent. The demand for have already begun work, and the preparations loans to finance the crops has been smaller are well under way for general activities. than in some years, and some hesitation is Those who recall conditions in the sugar shown by the farmers in the matter of purindustry at this time last year can appreciate chasing live stock to feed owing to the high the improvement resulting from good prices price of corn and fodder in general. Manufacand increased acreage, and above all the turers and merchants have so far been able better weather conditions that prevail. The to derive satisfactory profits from their outputs sugar industry has been suffering from a dozen and sales, but the rising cost of raw materials unfortunate accidents and the acreage, ex- may cut into their earnings unless a proporceptionally small, had been further reduced by tionate increase can be added to the selling the disatrous West Indian hurricane which did price, and even this would have a tendency Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

NOVEMBER 1,1916. FEDERAL RESERVE BULLETIN. 625 to decrease volume. Labor is well employed facturers to secure material, labor is scarce, and this produces an ability to buy freely. and this applies with particular force to expert An excellent fall trade is anticipated in almost mechanics who are able to connect themselves every line, with a shortage of certain materials with those lines which are directly affected by coming more and more into evidence. The the war demand. Some of the large companies lack of transportation facilities is commented anticipate a smaller volume than last year, but on by a number of our correspondents, and in collections seem to be in good shape. some industries the supply of labor is deficient. Factories report an active automobile busi- Crops in this district have shown no real ness, due to carried-over orders, as this is change during the past month, but the general normally the slow time of year in this line. outlook for those communities which are de- The usual slackening is evidenced by the dependent on the soil is favorable, owing to the crease in new commitments, and one authority prices that can be realized on their grains. is of the opinion that production is overtaking The principal interests in this line at present consumption. Collections are good. are the fall plowing and the preparations for the There is some decrease in building construcwinter wheat crop. Illinois is reported to have tion in Chicago, presumably caused by the assigned a large acreage to winter wheat, which increased cost of materials. The building of is practically all in the ground, and the pros- apartments is said to have been overdone in pects for this crop so far as can be estimated at Chicago. Workingmens* homes are still being this time are good. The frost in September erected in considerable numbers in some of damaged the corn crop and there will be some those centers which have received a great soft corn as a result. Indiana should have a influx of artisans during the past two years. satisfactory return from corn due to the high Cement has been in good demand, but users value of this grain. Dry ground has interfered have been subjected to considerable delay on with fall plowing, but the acreage of winter account of the shortage of the car supply and wheat should prove equal to if not slightly the difficulty in securing the labor necessary greater than that of last year. Iowa has for packing and unloading. Collections are enjoyed generally favorable weather, and its good. Brick manufacturers report increasing crops should prove fair in quantity and better sales, with September ahead of the correspondthan normal in the way of returns. Fall plow- ing month last year, and the prospects that ing is nearing completion, and the wheat October will show a like gain. acreage, particularly in the southwestern part There is great activity in the production of of the State, is said to be larger than last year. coal, with constantly advancing prices, and it Michigan shows no change in the matter of this is believed that the shortage of railway equipyear's crops. Advantage has been taken of ment and the difficulty in securing labor will some favorable weather to plow and seed, and continue to restrict the output in spite of the the acreage of spring wheat appears to be some- increasing demand for coal. There has been a what larger than normal. Wisconsin has had strike in the western Indiana coal fields, but it some cool weather and the acreage of winter is anticipated that matters will be satisfactorwheat sown to date appears less than normal. ily adjusted. Potatoes are in short supply. Business in distilling and brewing is better Conditions in the manufacture of agri- than last year, with good prospects. Breweries cultural implements have not altered to any have enjoyed a prosperous summer owing to extent since our last report. The sales of farm the general and continuous employment of machinery are not up to normal, which is to labor at better than average wages, and the some extent accounted for by the fact that the malting companies report a demand both for farmer has not adjusted himself to the higher export and domestic use which is maintainquotations. It has been difficult for the manu- ing their plants at fullest capacity. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

626 FEDERAL RESERVE BULLETIN. NOVEMBER 1,1916. Business gains seem to have been general history. On the whole, the grocers are enjoyamong our correspondents in dry goods, and ing a larger volume than last year. the fact that goods are going at materially ad- Manufacturers are finding difficulty in supvanced prices does not appear to have affected plying the requirements of the hardware trade the demand. Collections vary in accordance and in some cases are unable to make prompt with local conditions and prompt payment shipments. Wholesale houses report a good seems to be the rule. The wholesalers have demand with high prices in many lines. A genbeen booking orders for spring delivery with erally prosperous period is anticipated, and gratifying results. This is attributed to the collections are usually prompt although local desire of the retail merchants to place their conditions control payments and these natuorders before any additional increase is made rally vary. in the price of merchandise. The situation is The leather industry has been extremely more or less speculative, as goods are being active, with large bookings of business, and a bought on the basis of 15 to 17 cent cotton and strong demand both from domestic and foreign wool at corresponding values, but it is neces- buyers. The raw material market has been sary that the retailer keep his stocks full owing very strong and it is difficult to tell how long to the increased purchasing power of the public the condition will continue. In leather belting and its disposition to buy. there is a little slowing down, which is consid- Manufacturers seem satisfied with the exist- ered temporary, and conditions are considered ing conditions, the volume of orders is fairly sound with greater conservatism shown in the well maintained, and collections are good. The purchase of merchandise, machinery, etc. metals goods values have increased the cost of The demand in all lines of provisions has been production to a considerable extent and there strong during the past thirty days, and we are is evidence that purchasers are exercising con- advised that stocks have been somewhat deservatism in their commitments. pleted. Heavy purchasing of livestock is re- Prices of grain have been firm, with a large ported, principally hogs, but the supply has foreign demand and an American wheat crop been liberal and the price declined slightly over considerably less than last year. The reported thirty days ago. In general the livestock situimpairment of wheat in the Argentine is another ation is the same as last month, with some evielement in the market situation and higher dence that more cattle have been placed on prices are looked for unless the Kussian supply feed in this territory and that a large hog crop can be distributed through the opening of the is to be expected. Dardanelles. Oats and corn are in good de- The lumber business, which is dependent to a mand and show moderate advances over last large extent on building operations, has shown month. a decrease during the last month and there is Wholesalers report an unusually heavy de- some tendency toward lower prices. The remand for groceries, especially canned goods, quirements of the railroad and car manufacand difficulty in securing certain classes. There turers are reported as less than normal. Colhave been material advances in sugar, flour, lections in this territory are satisfactory. It potatoes, tomatoes, etc. The increase in prices is reported that a good supply of lumber is being does not appear to have cut down the volume, required by country towns, particularly through and collections are fair. The collection situa- Iowa. tion is to a certain extent governed by the The gain in mail-order lines continues, and difficulty farmers are experiencing in moving the merchandise distribution through the five their grain to market and also by the fact that States in this district is reported as ahead of the fall plowing is under way. One of our corre- corresponding period last year. spondents writes that the necessaries of life will Favorable business conditions are reported be higher this winter than at any time in our in the piano industry, and the principal ques- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

NOVEMBER 1,1916. FEDERAL RESERVE BULLETIN. 627 tion appears to be the ability of the factories to DISTRICT NO. 8—ST. LOUIS. take care of their orders. Labor conditions " Business best in years, with soundest have been trying, and materials are in short financial condition. Crops spotted, but prices supply and at high quotations. Some labor easily offsetting effects of bad spots/' trouble is said to be threatened. Collections This quotation, from an answer to one of the are said to be good. letters of inquiry in regard to business condi- Full-capacity production is reported by the tions sent out by this bank, summarizes the steel mills in this territory and the bookings reports received from practically all lines of in some cases extend through the third quarter industry. Dry goods, groceries, boots and of next year. There is said to be a heavy for- shoes, hardware, and jewelry all, report that eign demand and a. number of manufacturers in their business is extremely brisk and that, at this country, who are dependent upon this present, there is no indication of a reduction. material, have been compelled to order what Prices have advanced and are high, but have they require in spite of the prices which are not yet reached a point where purchasers hesinow asked. tate to buy what they desire. This applies to Watches and jewelry are active, and their luxuries as well as to necessities. best season should be within the next two The only industries in this district which do months due to the holiday trade. An increase not seem to be at high tide are those connected in business is generally looked forward to by with building. These report a good business, authorities in these lines. but they have enjoyed better. Most of the The raw wool market has attained to greater other industries report that they are enjoying activity and to higher prices during the past as good business, if not better, than they have month. It is reported that manufacturers are for a number of years. Shipments show great covering their wants more freely, evidently increase over the same periods in 1913, 1914, in the belief that the wool situation is on a and 1915, and collections were never better. f rm basis with still higher levels likely to ensue. One of our wholesalers, who does a very large Woolen-goods manufacturers are troubled to business throughout this district, says: "The gome exent by a shortage of labor, but the de- business condition in the territory is well above mand for goods is substantial at an ascending normal. People are employed, factories are scale of prices. It is expected that the volume busy, and merchants are doing the largest busiof business and values will be maintained for ness they were ever doing. We can see no some time to come* Collections are good. change in conditions for some time to come." Clearings in Chicago for the first nineteen From Memphis comes the report, ll Business in days of October, 1916, were $1,281,900,000, our line seems to be establishing a new record being $297,400,000 more than the correspond- for volume in nearly all of our trade territory. ing nineteen days of October, 1915. Clearings Sales are far above normal, with every indicareported by nineteen cities in the district out- tion of the demand for merchandise continuing side of Chicago amounted to $207,900,000 for for the balance of the year. On account of the the first fifteen days of October, 1916, as com- high price of our money crop, ' cotton/ the pared with $163,600,000 for the first fifteen agricultural population is seemingly in a very days of October, 1915. Deposits in the eight prosperous and satisfactory condition." A Central Reserve City member banks in Chicago wholesaler in Arkansas writes: "Business is were $698,000,000 at the close of business Octo- good—best for a number of years." Another ber 20, 1916, and loans were $476,000,000. says: •"Business is better than in 25 years." Deposits show an increase of approximately A third reports that " Crops are short, but busi- $26,000,000 during the past month, and the ness is good." Kentucky reports that " Busiloans an increase of approximately $21,000,000. ness in general is much better. The tobacco Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

628 FEDERAL RESERVE BULLETIN. NOVEMBER 1,1916. crop is very encouraging." From Missouri and been handled through this bank, direct and from Illinois come reports that business is good. indirect, a total of 427,718 items, amounting to From statements made by those who live in $185,226,491.57, during the third month this the cotton-growing portions of this district, it bank has operated under the new clearing sysseems that the cotton crop in District No. 8 is tem. The total number of banks in this disin somewhat better shape than it is in other trict, members and nonmembers, on which we districts. An observer from Arkansas reports could handle items at par, on October 15 was that, in his judgment, the crop in that State 1,273. On September 16 we could handle will turn out better than the general reports items at par on 1,232 banks, showing an inindicate. Wheat, corn, oats, and hay, in all crease of 41 banks on which we can handle of the States in this district, are below the items at par. 10-year average, but the tobacco crop in both Money rates are unchanged, and as a general Kentucky and Tennessee is fully 10 points rule, the banks throughout the district show above the 10-year average. an increase in deposits. Last year the paper rediscounted by member DISTRICT NO. 9—MINNEAPOLIS. banks with the Federal Reserve Bank of St. Louis reached its largest amount held at any With the potato harvest in full swing, the one time, on November 16. On that day this crop year in the northwestern States is pracbank held a total of rediscounted paper amount- tically completed. The yield of potatoes will ing to $1,832,492.77. On October 20 of this show a considerable reduction as compared year this bank held a total of paper redis- with a year ago, and the quality is not so good. counted for member banks amounting to Large shipments are beginning to move to $2,331,883.53, showing an increase over our southern and eastern points, and the crop is largest amount heretofore of $499,390.76, and commanding an excellent price. The late we have most probably not yet reached our forage crops have been gathered, and show a highest point this year for rediscounted paper very heavy yield. The corn crop is being held on any one day. harvested, and over the district, as a whole, is The clearings throughout the district show very satisfactory, both as to quality and yield, a substantial increase. For the week ending although it is an uneven crop due to the October 7, the figures are as follows: Memphis, weather conditions in the growing season. 99.6 per cent; Little Rock, 94.7 per cent; St. Crop year receipts of wheat at Minneapolis Louis, 41.7 per cent; Evansville, 27.2 per cent, and Duluth terminals since September ] and Louisville, 17.] per cent. The check clear- amount to 24,108,000 bushels, as against ing and collection system in this district con- 49,008,000 bushels a year ago, and 50,325,000 tinues to work satisfactorily. For the third bushels two years ago. Elevator stocks are, month that this bank has been working under however, twice as large as a year ago. Rethe new plan, from September 16 to October ceipts have been in moderate volume, ac- 15, inclusive, we handled a total of 220,363 counted for partly by the poor quality and items, amounting to $141,942,921.23. This reduced yield of the crop, and partly by shows an increase over the previous period of the disposition of the farmers to hold back the 18,083 items, but a decrease of $29,337,664.83 better grain in anticipation of higher prices. in the total amount of them. The number of The price levels have been very unusual, and items handled during this period by member there have been predictions by expert authoribanks direct to other Federal Reserve Banks ties in the trade that wheat will go to $2 on the for our account, not actually handled by us, Minneapolis market. Dry weather in the amounted to 207,355 items, totaling $43,283,- Argentine and other conditions have tended to 570.34. This means that through the instru- bring about gradual advances, upon which the mentality of the clearing system, there has farmers have been taking large profits. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

NOVEMBER 1,1916. FEDERAL RESERVE BULLETIN. 629 In Montana, where the wheat yield was very ing gradual increases in the volume of loans. good both in quantity and quality, rain and Rates are stationary, with no sign of change. snow have seriously interfered with thrashing, Construction is active at urban points, and and have operated to hold back deliveries to the lumber industry reports good business. country elevators. Over the remainder of the Leading business men anticipate a continuadistrict, farmers have been very busy with tall rion of the present favorable business conditions plowing, and the weather has been favorable until well after the first of the year, believing for the accomplishment of a very large amount that the high prices for all varieties of farm of fall work. This is commented upon as a products are satisfactorily offsetting the reparticularly favorable factor in view of the poor duction in the grain yield and potato crop. preparation of the ground a year ago. Agri- The strong position of the outside territory is cultural associations and the grain trade have indicated by a light demand by the country cooperated to urge careful preparation for next banks upon their city correspondents, and a year's crop. Considerable attention is being very moderate volume of rediscounts at the paid to the seeding question, which has become Federal Eeserve Bank. important because of a shortage of plump, high-grade grain. DISTRICT NO. 10.—KANSAS CITY. The generally prosperous conditions hereto- Flour prices have been advancing in response fore existing in this district continue unabated. to the upward trend of wheat prices, and the Reports from all lines are optimistic and satisproduction of the Minneapolis mills has not factory. High prices are offsetting the somebeen as heavy as a year ago. Flour buyers what reduced production in agriculture. Unhave been reluctant to accept the view that usually heavy receipts are reported at the livehigh prices are permanent, and have been buystock markets. Labor conditions are satising cautiously. factory. Wholesalers, retailers, jobbers, and Based on the market of October 10, the avermanufacturers are working to capacity. The age prices to farmers for wheat at country mining industry, as a whole, was never in as points in this district were: No. 1, Northern, prosperous a condition as it is at this time. $1.64; No. 2, Northern, $1.60; lightweight In spite of the reduced price of crude oil, con- (47-48 pounds), $1.24. fidence among producers is strong for a pros- Market conditions have made the demand perous period ahead, advances in eastern pefor funds from large concerns in the grain trade troleum contributing to the belief that the light, and money rates are very easy. Indorsed market will soon reassert itself. Discount time grain paper is commanding a 4 per cent rates remain stationary, with a light demand. rate, and paper secured by terminal elevator All figures received indicate continued inreceipts, 3£ per cent. There is a strong demand creases in railway earnings, post-office refrom the East for paper secured by terminal ceipts, bank deposits, and clearings. Buildreceipts, but with only a limited amount availing permits continue to increase in all imable. portant cities of this territory, the percentage There is no change of consequence in trade for September over the same month last year conditions throughout the district; retail trade running from 45 per cent to 100 per cent. continuing on a favorable basis, and wholesale Shippers in all lines are generally complaining and distributing lines enjoying a brisk busiof the car shortage, many claiming it to be the ness. Industrial concerns are producing on a severest in years. Higher demurrage rates, large scale, with satisfactory orders ahead. on grain not unloaded promptly at terminal Labor is fully employed at good wages. Bankmarkets, are already proposed. ing conditions show no change. Country banks have been enjoying increasing deposits Owing to the well-known importance of this and the banks at the larger centers are report- district agriculturally, weather conditions are Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

630 FEDEKAL RESERVE BULLETIN. NOVEMBER 1,1916. always of first importance. The records for terially since last month's report, and the the crop-growing season since March 1 show quality is probably the best in years. Oklathat precipitation, practically over the entire homa claims the finest broom-corn crop for district, has been considerably below normal. years, 25 per cent larger than last year, and This deficiency is not favorable to the new there is also an increase of approximately winter wheat crop. More moisture is needed 200,000 bales of cotton. A recently compiled to promote germination. This section should statement as to Colorado estimates the total be favored with heavy winter snows to open crop production for 1916 as having a total value next spring's growing season under favorable in excess of $80,000,000, at least $12,000,000 conditions, and some wet months are needed more than in 1914 or 1915. The increased to restore the soil to normal. On October 16 value of sugar beets and hay alone amounts to the weather map showed rain in the preceding more than $10,000,000. In Wyoming and 24 hours in Kansas, Nebraska, Colorado, and New Mexico the forecast indicates that the Wyoming, and light snows with freezing tem- principal agricultural products amount to about perature were reported at several points. A the same as last year, in bushels. killing frost occurred in nearly all parts of the An interesting item from Kansas is the fact district late in September, without material that the alfalfa and sorghum crops in that damage, since most of the crops had matured. State now produce combined yields worth Plowing and seeding of winter wheat has been $50,000,000 annually, whereas 25 years ago practically completed in the eastern portion these crops were experimental. A reliable of the district. estimate from this State indicates that at least The shortage in the production of wheat in one-third of this year's wheat crop, approxithe three principal wheat-raising States of mately 30,000,000 bushels, 90 per cent of the this district will amount to approximately alfalfa, 80 per cent of the prairie hay, and 75 40,000,000 bushels. It will be appreciated, per cent of the oats remain in the hands of the however, that the increased price will more farmers. The corn crop, of course, has not yet than offset the shortage indicated. As an been gathered. In Oklahoma it is estimated instance in support of this statement, it is that 27 per cent of this year's wheat, 44 per cent. authoritatively stated that Nebraska's wheat of the "oats, and 82 per cent of the corn remains crop this year will be worth $20,000,000 more in the producer's hands. Reports from the than last year, and this statement is all the other States in the district in this respect have more interesting since the Nebraska wheat not come' to hand, but it is safe to assert that acreage was 352,500 less than last year. The the average is fairly general. The foregoing, Missouri wheat acreage "for the 1917 harvest taken in connection with the record-breaking is said to be the smallest in many years—12 deposits in the banks, is indicative of the soundper cent less than was seeded for the 1916 ness of business conditions in the district. harvest. The main feature of the live-stock industry The estimated corn crop in the principal has been the heavy receipts of both cattle and corn States in this district for.the past three hogs at all the markets. Denver also reported years are here shown in millions of bushels: that more than twice as many sheep were handled on October 2 as ever before in one day. Very m State. 1916 1915 1914 few full-fed beef cattle are being received, it being apparent that this class of stock has N M e is b s r o a u s r k i a... 2 1 0 5 9 2 2 20 1 9 3 1 1 5 7 8 3 about been exhausted, and until the new corn K O a k n la s h as oma. 5 6 9 3 1 1 2 7 4 2 1 5 0 0 8 crop has been fed, light runs of corn-fed beef cattle are expected. The larger part of the It will be noted that the estimate on Ne- receipts are grass fed and stockers and feeders braska's excellent corn crop has increased ma- coming from the grazing districts. The prices Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

NOVEMBER 1,1916. FEDERAL BESERVE BULLETIN. 631 on the very best fat cattle have been steady, tober 1. The carrying of the vote does not but on medium grades of beef cattle and cows imply an immediate walkout. Counter prothe prices are lower, while stockers and feeders posals will now be expected. A general shortare lower than they have been for at least two age of labor continues, and labor bureaus have years. The demand for them is less than usual had more calls than they could supply. Many at this season of the year. The feed crop being voluntary concessions are reported as coming more abundant than was estimated a month from employers, and some concern is expressed ago, the demand should be greater for stock to over the future, when the present abnormal go back to the country from the market. A conditions have passed. good demand continues for cows for breeding Lumber prices are much firmer than they purposes to go back to the country. Hogs are were 30 or 60 days ago, having advanced from about $1 per hundred lower than they were a $1 to $2 per thousand. It is the supposition month ago. that this is largely due to car shortage and not Stocks of cut pork products at the five west- entirely to the large volume of business. Reern centers—Kansas City, Chicago, Milwaukee, tailers report the continuance of a very satis- South Omaha, and St. Joseph—decreased factory business, one important company, op- 46,027,000 pounds last month. Three of these erating a number of retail yards throughout the centers, it will be noted, are within Federal district, advising that as compared with a year Reserve District No. 10. There was a sub- ago the volume of business is probably 25 per stantial increase in the number of hogs packed cent larger. They have shown an increase over in every packing center in the district since 1915 for every month this year except two, and February 26, 1916, to date, as compared with express surprise, owing to the fact that in some last year. localities, where the yards are located, crop Foreign exports of grain from ports to which conditions have been very unfavorable. Colthe products of this district are shipped, and lections are said to be coming in much more which constitute the bulk of these shipments freely than they did last year. from such ports, indicate that during the month A report recently issued shows that the Jbpof September there was a slight decrease in lin (Missouri-Kansas-Oklahoma) district proshipments of this character as compared with duced 8 per cent of the total lead ore in the the previous month, and that as compared with United States last year, the value thereof being September, 1915, there has been a falling off in excess of two and one-half million dollars. of practically one-third in the volume. The The production for the first 39 weeks of 1916 foreign shipment of horses for September shows sold for more than the entire 1915 production. a decrease over the same month last year, while Zinc ore produced will also exceed that of 1915, this trade in mules increased in September as the value of that sold the first 41 weeks of 1916 compared with that month in 1915. For the exceeding the total sold last year. periods from January 1 to October 1, 1915 and According to State estimates, Colorado's 1916, the former period shows a considerably metal output for 1916 will be more than 25 per larger foreign shipment in both horses and cent larger than last year, the greatest in the mules than the latter. history of the State. New mines are still being Aside from purely local difficulties, of small located, old mines are being reopened, every importance, labor conditions may be said to be miner in the State has work, and there is an rather unusually satisfactory, the only unto- unprecedented demand for labor at the mines. ward circumstance being the strike voted in The complete success of the flotation process, the referendum taken by 40,000 members of referred to last month, is said to have been esthe six shopmen's unions on 22 western rail- tablished at Goldfield, a number of deep shafts roads, on proposals made by the railroads, are in progress, and preparations are under assured by the partial count announced Oc- way by the principal producing companies to Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

632 FEDERAL RESERVE BULLETIN. NOVEMBER 1,1916. increase.; their ore-handling facilities. An un- has been a decrease of a slightly greater perusually rich body of ore has been encountered centage in volume as compared with the same at Cripple Creek at a-depth of more than 1,900 period last year. This decrease is due to the feet. It was formerly assumed that below short grain crop, which affected the sale of 1,000 feet the district would be worthless in so harvesting machinery, and to the drought, far as the production of gold is concerned. which made it almost impossible for farmers to Since the first of the year 350 new mining com- plow. Collections are said to have been better panies, the majority of which are liberally than they have been for 10 years. Farmers are financed, have been incorporated to operate in paying their bills and dealers are taking more this State. discounts, with the result that jobbers are going In the Mid-Continent oil field a further con- to close their year with a smaller percentage of traction is reported from the Gushing and Sham- outstanding to sales than they have had for a rock districts, the total production in the Mid- great many years. Continent field now being placed at approxi- Dealers in millinery report the fall trade to mately 340,000 barrels daily. The Gushing have been considerably better than last year. field, when at its height, alone produced almost The wholesale drug business showed an increase this daily total. Lack of water for drilling in September over the corresponding month of has held back considerable work. Last month 1915, and every month this year has shown an witnessed a decline in the number of com- increase over the corresponding month of any pleted wells and also in new work. October previous year. The increased business is is expected to witness a gain in both completed partly accounted for by the increased price of wells and in new work, as the purchasing com- goods sold. Conditions in the general retail panies are taking all oil. Many wildcat tests mercantile business have shown a very satisare under way in Kansas and Wyoming. The factory increase for September. The general development of Wyoming7 s oil resources is pro- trend since the first of the year has been very gressing rapidly. Three years ago there were encouraging and indicates a good volume of but few oil wells in this State and those of com- trade for the approaching holiday season. paratively little value. The number of wells From reports of important wholesale dry goods has increased many fold, and if there were concerns, business conditions are ascertained means of refining, the output would be much to be much more intense. Prices are higher, more important. The cost of drilling wells has merchandise is scarcer, the demand is greater, greatly advanced, is still steadily advancing, while the sales and collections are correspondand to complete a new well now demands more ingly larger. The degree of prosperity has been cash than ever before in the history of the oil so unusual that merchants in this line, like those fields. in many other lines, are somewhat at sea as to Implement dealers report that with season- the future. The mills of the country, which able needs fairly well provided for, dealers are have never supplied domestic needs, have turning their attention to the future and are been burdened with supplying our people with contracting for spring goods more readily than all of their needs, while the foreign demand is ever before. Immediate trade is confined to unprecedented, so that to-day, in dry goods strictly seasonable lines. A gain in the tractor lines, our wholesalers are confronted with trade is evidenced by the fact that one State advanced prices, as against 18 months ago, alone reports an increase of 60 per cent in use that will average fully 33J per cent, some this year over last. The first six months of items much more. Retailers in this line 1916 showed an increase of about 20 per cent are enjoying a good business and are paying in the volume of the implement business over their bills with more promptness than ever the same period in 1915, but since July 1 there ! before. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

NOVEMBER 1,1916. FEDERAL EESBBVE BULLETIN. 633 DISTRICT NO. II—DALLAS. ally large, due in part to an increase in acreage Commercial conditions in the Eleventh over last year of at least 25 per cent. This Federal Reserve district continue on an ex- product is bringing around 90 cents a bushel, tremely satisfactory basis. The past 30 days an advance of 33 § per cent over last year. This have brought largely increased receipts of has grown to be quite an important industry in cotton and farm products at marketing centers. Texas, and each season sees a heavier acreage. High prices have been obtained for these com- Another item of interest, agriculturally, is the modities. Wholesale and retail merchants re- shipment of black-eyed peas from east Texas. port extra heavy buying, good collections, One concern located at Athens, Tex., has and an exceedingly satisfactory fall trade. shipped during the past season some 25 cars Bankers throughout the district, particularly of this product at prices of about $1,000 per in the cotton-producing sections, report that car. The alfalfa crop of New Mexico was good their deposits are the highest in their history; and much better than in several years. Prices that farmers are liquidating to a large extent, were around $15 per ton. and in .many cases are paying off their obliga- Money rates remain easy and there is a tentions before maturity and settling debts of long dency to lower them. Bank deposits are reachstanding. ing the high-water mark and show an increase This era of prosperity has brought with it an of from 50 to 300 per cent over the same time advance in prices of the necessities of life, and, last year. Demand is much lighter than a this is being seriously felt. With no apprecia- year ago except in the cotton centers, where ble increase in wages, in keeping with the up- there is an active demand for funds to handle ward prices of foodstuff and clothing, the laborer the cotton and cottonseed products. The finds it difficult to meet the advanced prices for loans of this bank have decreased some three the necessities of life. and a half million dollars within the past The cotton crop is being rapidly marketed, month, and are some two million dollars less especially in central and north Texas, where than at the same time last year. This is to be a conservative estimate would be that from expected at this season, as it is in the midst of 80 to 85 per cent of the crop has been gathered. fall liquidation. The problem which presents There has been no loss in the staple, since good itself at this time is the outlet for the idle funds weather has prevailed and enabled the rapid being accumulated by the banks. No doubt picking of the crop. But little top crop is an- there will be some seeking investments in comticipated and in most sections none at all. mercial paper and short-time maturities. The interests of the district are so largely As evidencing the large increase in deposits, agricultural that conditions in the farming sec- the following figures obtained from the Texas tions rather determine the business of the cities. reserve cities showing their deposits on October Farming conditions, for the most part, for the 16, 1915, and October 16, 1916, prove of interpast three or four years have been exceedingly est. An increase of 74 per cent is shown. The unfavorable, and crops and the returns from figures are: 1915, $109,464,905; 1916, $190,the same have not been satisfactory, due to va- 459,992; increase, $80,995,087; per cent inrious causes. This fall, with farmers coming crease, .74. into their own again, the cities of the district, A comparison also of the loans and discounts where the trade is felt, are realizing the benefit. and deposits of the banks in the reserve cities Heavy rains have retarded to some extent of Texas for June 30, 1916, and September 12, the planting of winter wheat, though not suffi- 1916, dates of the latest calls of the Comptroller, ciently to be serious. All feed crops are espe- show further heavy decreases. The figures are: cially good. The threshing of peanuts is now June 30, 1915: Loans, $89,806,000; deposits, in progress and the crop is said to be exception- $122,123,000. September 12, 1916: Loans, Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

634 FEDERAL RESERVE BULLETIN. NOVEMBER 1,1916. $103,010,000; deposits, $144,748,000. In- and also for the periods from January 1 to Octocrease in loans, $13,204,000; increase in de- ber 1, of 1916 and 1915, are as follows: posits, $22,625,000. As indicating the heavy increase in business September. Jan. 1-Sept. 30. generally, caused primarily by the free movement and rapid marketing of the cotton crop, 1916 1915 1916 1915 bank clearings for the eight principal cities of Cattle. 73,513 63,565 613,061 574,357 the district show an increase of over 50 per cent Calves 19,034 16,480 102,250 99,576 Hogs.. 73,806 52,470 737,291 330,118 for September, 1916, over September of last Sheep. 30,726 17,959 353,580 325,913 year. The figures are as follows: 1915, $161,- 195,047; 1916, $242,741,296. Increase, $81,- It will be noted that up to date the receipts 546,249. Per cent increase, 50.5. of hogs are more than double the same period Bond dealers report a very active market of last year, the prices for which, in spite of with a large demand at high prices. heavy runs, have continued at the high level With the bulk of the cotton crop marketed of 9 and 10 cents. Good rains have made there is less demand on this bank for shipments range conditions excellent and cattlemen report of currency and silver, and there has been a very that stock will go into the winter in excellent great decrease in the same within the past month. shape. The stock market shows some im- In fact, at the present time the opposite condi- provement and a large number of grass-fed tion is beginning to prevail, and our member cattle are expected to be shipped from south banks are making shipments of currency and Texas within the next 60 to 90 days. An excoin to us instead of forwarding exchange to cellent demand for horses and mules has prebuild up their reserves against, items sent them vailed, on account of large contracts placed by through our district clearing house. the United States Government and European countries. This has put a substantial amount The operations of our district clearing house of money into the country banks, as such live continue to grow heavier. There were handled stock have brought excellent prices. Reports for the period September 16 to October 14, from the sheep sections of Arizona and New 1916 (24 days), 276,946 items, aggregating Mexico are that lambs are being contracted for $161,944,813. Our member banks are becomat prices around 8} cents per pound for Noveming more and more accustomed to the facilities ber delivery. afforded by this district clearing house and the number of items handled is growing daily. The shortage of cars is causing a serious Wholesale trade in grocery, drug, leather, condition with the transportation lines. Offidry goods, and practically all other lines, shows cials advise that they are unable to supply a large increase in volume, with collections good. sufficient equipment to handle the business, Retail trade, from reports received, is from 25 and that this condition exists not only locally, to 50 per cent larger than last year, and with but on all their northern and eastern conneccolder weather, which is now being felt, retail tions. One official interviewed stated that merchants have an assured satisfactory trade. they were compelled to refuse certain classes The fall has been rather backward and stocks of shipments on account of freight congestion have not moved as rapidly as ordinarily at this at terminals and inability to unload the cars. season. An increase in freight traffic of some 25 per Receipts at the live-stock markets of the dis- cent is shown over last year. Passenger traffic trict continue to show a steady increase, with is above normal, especially excursion travel particularly heavy receipts of hogs. The fig- from rural districts and fairs and expositions ures from the Fort Worth market for Septem- over this section of Texas, which are taxing the ber, 1916, as compared with September, 1915, railroad and interurban lines to their capacity. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

NOVEMBER 1,1916. FEDERAL RESERVE BULLETIN. 635 Post-office receipts at the nine principal which he ever contended. He further states cities of the district for the month of September, that they are unable to ship more than 60 per 1916, as compared with 1915, show an increase cent of their normal output, while the demand of 18.3 per cent, and are as follows: 1915, remains equal to a normal production. The $289,466; 1916, $342,574. Increase, $53,108. firm in question reports that they have had to Per cent increase, 18.3. withdraw entirely from the market temporarily Failures over the district for the period be- and, unless there is considerable improvement tween September 15, 1916, and October 14, in the car supply they will cease to accept 1916, inclusive, compared with the similar orders indefinitely. The shipments are being period last year, were: made on sales previously contracted and, in order to take care of the situation as best can No. Liabilities. be done, the production is being regulated to conform to such demand as can be reasonably 1915 71 $976,401 met, with a fair supply on hand, yet with a 1916 57 590,950 view to prevent an accumulation of stock to Decrease 385,451 be forced on the market when the car situation is improved. Failures in Texas for the nine months of the present year compared with the similar period Manufacturers of brick and cement advise last year were as follows: that the trade is very satisfactory considering that this season is ordinarily dull with them, owing to less construction at this time than at No. Liabilities. other seasons. They likewise report that the 1915 648 $10,413,164 disturbing element is the scarcity of cars for 1916 414 5,619,038 shipping such material as is ordered from them. Decrease 4,794,126 The output of the oil fields is normal and indications are that prices will be better within the Building permits for the cities reporting— next 30 or 60 days. In some of the Oklahoma Austin, Dallas, El Paso, and Fort Worth—for fields prices have been increased and Texas the month of September, 1916, over similar operators anticipate that it will probably be period last year, are as follows: necessary for them to advance prices within a s— short time. No. Amount. The copper industry continues active and the mines of west Texas and Arizona are running 1915 406 $623,882 1916 346 1,088,686 on full time. The coal mines of Oklahoma I P n e c r r e c a e s n e t increase 464 80 7 4 4 and west Texas, however, have suspended operations temporarily on account of labor dis- Dallas alone shows a decrease in number but turbances. Reports from the New Mexico coal an increase in valuation of over 180 per cent of mines indicate that scarcity of labor is causing permits issued in September, 1916, over Sep- difficulty in filling orders. Demands are extratember of last year. Fort Worth shows an ordinarily heavy. increase of over 60 per cent in its building per- Labor employment in Texas is said to be mits for the month of September, 1916, over normal with a heavy demand for unskilled same period of last year. workmen. There is nothing in the present The retail lumber business is satisfactory and situation to indicate any disturbances the demand is good, with the mills operating five coming winter. There will be the usual expiradays a week. Car shortage is having a serious tion of wage contracts, but there is nothing in effect on the trade and one large manufacturer the situation to indicate any disturbances atadvises that the shortage is the worst with tending the renewal of the same. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

636 EEDEEAL BESERVE BULLETIN. NOVEMBER 1,1916- DISTRICT NO. 12—SAN FRANCISCO. State banks show similar gains. Although Since the establishment of the Federal Re- easy credit conditions have rendered unnecesserve System in November, 1914, there have sary any extensive re discounting, the Federal been no failures of national banks in this Reserve Bank has nevertheless rendered impor- Twelfth Federal Reserve District, which in- tant aid during the harvest season in certain cludes the seven States west of the Rocky sections having inadequate banking facilities. Mountains: Arizona, California, Idaho, Oregon, Many banks manifest appreciation of the po- Nevada, Utah, and Washington. tential resource, and the resulting additional Comparing reports of September 12, 1916,stability, but it is natural that there should be with those of a year before, national banks of a certain percentage of malcontents. The par seven reserve cities—San Francisco, Los Ange- collection of checks, entered upon in July, by les, Portland, Tacoma, Seattle, Spokane, Salt Federal Reserve Banks under the requirements Lake City—show a gain of 23 per cent in de- of the Federal Reserve Act, disturbed previously posits and 17 per cent in loans, in detail as follows: existing methods. This would naturally arouse objection on the part of some whether it made DEPOSITS. for a better or a worse condition. Many mem- Sept. 12,1916. Sept. 2, 1915. Increase. i P n e c r r e c a e s n e t . ber banks have cordially cooperated, however, believing that this plan makes for efficient serv- Los Angeles $85,184,000 $65,869,000 $19,315,000 29 ice to commerce upon which the prosperity of S P a o n rt l F a r n a d ncisco 2 4 3 6 0 , , 7 1 7 5 8 7 , , 0 0 0 0 0 0 1 4 8 2 5 , , 0 2 5 6 0 8 , , 0 0 0 0 0 0 4 4 4 , , 7 8 2 8 8 9 , , 0 0 0 0 0 0 2 1 4 1 banks should properly be founded. A grati- S Se a a lt t t L le ake City 4 2 8 3 , , 0 0 5 8 5 2 , , 0 0 0 0 0 0 4 1 0 7 , , 7 8 2 0 3 6 , , 0 0 0 0 0 0 5 7 , , 2 3 7 3 6 2 , , 0 0 0 0 0 0 3 1 0 8 fying spirit of cooperation has also been shown T Sp ac o o k m an a e 2 9 4 , , 0 3 4 9 5 6 , , 0 0 0 0 0 0 1 7 8 , , 6 4 7 8 5 1 , ,0 0 0 0 0 0 5 1 , , 9 3 1 7 5 0 , , 0 0 0 0 0 0 3 1 2 8 by nonmember banks, 1,060 of which out of a Total 466,697,000 377,872,000 86,799,000 23 total of 1,279 in this district are now remitting without a deduction for exchange for checks LOANS AND INVESTMENTS. drawn on themselves. Los Angeles $68,119,000 $59,785,000 $8,334,000 14 The investments of this bank have been San Francisco 190,194,000 162,725,000 27,469,000 17 largely in bankers' acceptances, at rates ap- Portland 41,232,000 36,548,000 4,484,000 12 Salt Lake City 19,695,000 15,823,000 3,872,000 24 proximating 2J per cent. Before the Federal Seattle 36,999,000 30,901,000 6,098,000 20 Spokane 20,392,000 15,903,000 4,489,000 29 Reserve Act, this class of business was monop- Tacoma 7,691,000 6,397,000 1,294,000 20 olized by European banks, but eastern banks Total. 384,322,000 328,082,000 56,240,000 17 are now accepting extensively and a few enter- A similar comparison by States is as follows: prising banks on.the Pacific coast are entering upon this business, which naturally is engaged DEPOSITS. in only by strong banks in financial centers. Sept. 12,1916. Sept. 2, 1915. Increase. i P n e c r r e c a e s n e t . Considerable investments have also been in municipal warrants at rates approximating 2f Arizona $8,145,000 $5,801,000 $2,344,000 42 per cent. The laws of Eastern States authorize California 485,958,000 388,065,000 97,893,000 25 Idaho 32,354,000 23,395,000 8,959,000 38 the issuance of such warrants in anticipation of Nevada 9,612,000 7,022,000 2,590,000 37 Oregon 81,680,000 71,077,000 10,603,000 15 tax payments. Presumably the States of this U W t a a s h hington 1 3 2 5 1 , , 1 3 2 0 6 3 , , 0 0 0 0 0 0 2 9 7 9 , , 1 1 1 8 8 7 , , 0 0 0 0 0 0 2 8 2 , , 0 1 0 1 8 6 , , 0 0 0 0 0 0 2 2 9 2 district will in time amend their laws so that the Total 774,178,000 621,665,000 152,513,000 24 municipalities may avail of such low rates for their temporary borrowings. LOANS .AND INVESTMENTS. The earnings from investments, chiefly other than rediscounts, have been such that this Arizona $6,782,000 $6,150,000 $632,000 10 California 422,144,000 374,252,000 47,892,000 12 bank, on October 1, paid a dividend at the raet Idaho... ... 26,448,000 24,399,000 2,049,000 8 Nevada 8,168,000 7,441,000 727,000 10 of 6 per cent per annum from the' date of organ- Oregon 73,345,000 67,883,000 5,462,000 8 Utah 30,284,000 25,189,000 5,095,000 20 ization, November 16, 1914, to January 1, 1915, Washington 99,531,000 85,444,000 14,087,000 17 after charging out all organization expenses Total 666,702,000 590,738,000 75,944,000 13 and the cost of all furniture and equipment. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

NOVEMBER 1,1916. FEDERAL EESEEVE BULLETIN. 637 The enormous wealth, from production of Up to October 11, 1916, 14,351 cars of copper has some reflection in the large percent- peaches, pears, and grapes had been shipped age of increase in deposits shown by the banks out of California this season, compared with of Arizona, Utah, and Nevada. The profits of 12,900 cars for a corresponding period in 1915. a single copper company in Utah are said to A carload of soft-shelled walnuts recently have reached $4,000,000 in one month. The shipped is said to have sold for $10,000. large gain in Idaho marks the great prosperity The olive crop is much below normal. in the cattle and sheep industries. A reliable About 50 per cent of the crop is pickled, al- Boise (Idaho) banker gives the information that most entirely in the form of ripe olives, the sheepmen are realizing the unheard of price of remainder being used for making oil. $8 for lambs in Chicago, with a freight cost of 90 There is a record crop of Valencia oranges cents. this year, aggregating from 13,000 to 14,000 September bank clearings in 17 leading cities carloads, compared with 9,500 in 1915 and of this district were 35 per cent greater in 1916 12,000 in 1914. Returns to growers have been than in 1915. The greatest increases were 56 equaled only once in recent years. The maper cent in Salt Lake City and 42 per cent in turing crop of navel oranges, the first ship- Seattle. ments of which will be made about November September building permits in the same 17 15, is estimated at 93 per cent of a full crop, or cities show 31 per cent increase, with the largest about 5 per cent above the average. The emincrease in Portland. bargo has been raised against shipments of Stocks of grain in this district are lower than citrus fruits to Australasia, a market which in years. Due to heavy European and eastern absorbs about 3,300 carloads. With the Flordemand, buyers of barley, in the production of ida crop estimated at 71 per cent, the outlook which California leads all the States, are offering seems to be for good prices. A condition of $1.70 to $1.90 per cental as compared with general prosperity always assures large returns $1.30 to $1.40 last year (or 82 to 91 cents per to Pacific Coast fruit growers, who are now bushel this year as compared with 62 to 67 benefiting unusually because of the great busicents last year). ness activity of the East. Growers of sugar beets have received high Lack of transportation continues to hamper prices, and sugar factories have made excep- the lumber industry. Even for interior shiptional profits. The Government estimates a ments there is an acute shortage of cars. crop of 4,097,000 bushels of beans, 40 per cent Shipyards, which are,crowded to the limit, Lima, from 248,000 acres in California, another report some difficulty in securing material. A product in which California leads. Damage disagreement recently between the members of from discoloration by rain is reported in some two labor unions, reported to have no comsections. California's onion crop exceeds plaint against the employing concern, resulted 2,000,000 bushels, second only to that of New in 2,200 employees of a San Francisco ship- York. builder going on strike. The apple crop of central Washington suffered To the 5,000 tons of shipping under the damage from a windstorm on September 26, American flag on the Pacific Ocean, 17,000 tons some 800 carloads of fruit being blown from the have been added by the purchase of three trees. Prices for apples are reported as good. steamers by the Pacific Mail Steamship Co. Prices for prunes, which have now been har- This compares with 80,000 tons prior to the vested, range from 5 to 6| cents, which is un- war. Japanese interests are largely in control usually high. In the northwest the sizes were of trans-Pacific transportation, the Japanese larger than usual. Unusually early rains about merchant marine, on January 31, 1916, comthe 1st of October caused damage to raisins, prising 1,856,877 registered gross tons of steam grapes, figs, and dried fruits. and 554,605 gross tons of sailing vessels, with Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

638 FEDERAL RESERVE BULLETIN". NOVEMBER 1,1916. half a million gross tons since started on a total daily average of 265,514 barrels. This Japanese stocks. One Japanese company, compares with a daily average in September, which bought the principal ships of the Pacific 1914, of 282,152 barrels. Shipments during Mail Steamship Co., is reported to be earning September increased 2,021 barrels per day to $1,000,000 per month. Norwegian interests a daily average of 307,145 barrels, a new are also active, and are reported as about to record, reducing stocks in storage 1,248,923 establish a Norway-California line. barrels, a total reduction during nine months A merger of the Pacific Alaska Navigation of 8,566,630 barrels. The amount now re- Co. and the Pacific Coast Steamship Co. into maining in storage is 48,469,257 barrels. the Pacific Steamship Co. involves 22 steam- The president of a Phoenix (Ariz.) bank ships of 55,000 gross tons and makes the new sums up the local situation with this statement: company supreme in the coastwise service along "The outlook in all lines of business is all that the entire Pacific coast, including Alaska. can be desired." Except for inactivity here Greater efficiency in operation is anticipated and there, as in lumbering and real estate, this from combining the two fleets under a single is typical of conditions quite generally throughmanagement. out this district, so far as the near future is Petroleum production in California during | concerned. September increased 6,055 barrels per day to j Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

NOVEMBER 1,1916. FEDERAL RESERVE BULLETIN. 639 DISTRIBUTION OF DISCOUNTED PAPER eight months of the present year. Discounts BY CLASSES, SIZES, AND MATURITIES- of this class of paper since September 2, 1915, the date of the first discount of this class of Commercial paper discounted by the Federal paper at special reduced rates, total $4,774,900, Reserve Banks during September, 1916, of which about two-thirds is credited to the amounted to $14,308,700, compared with Richmond and Atlanta banks. $17,351,800 for August, 1916, and $13,238,200 The total number of bills discounted during for September, 1915. Of the total September September was 5,214, compared with 8,542 for discounts the share of the three southern banks the immediately preceding month, and 9,173 is about 46.2 per cent, as against slightly over for September of the past year. As the amount 40 per cent in August, 1916, and 65.4 per cent of the bills discounted during September shows in September, 1915. The only other bank with a much smaller relative decrease, the average discount operations of some volume for the size of the paper discounted during the month, month is Chicago, which reports considerable $2,740, is largely in excess of the August, 1916, discounts of farmers7 paper among its total average of $2,030, and of the September, 1915, monthly discounts of 2.3 millions. Discounts average of $1,570. Over one-half of the amount of the Federal Reserve Banks for the nine of the month's discounts is represented by months of the present year totaled $114,387,200 large-sized notes in denominations of over as against $112,620,500 for the corresponding $5,000, as against a little over 30 per cent in period in 1915. Among the total discounts for September, 1915, while the share in the total the month advances to member banks against amount of medium-sized notes, in denominatheir own notes secured by discounted paper or tions of over $1,000 to $5,000, is over 40 per United States bonds and Treasury notes figure cent, being slightly larger than in September of to an amount of $1,260,850. Such advances, the past year. Small notes (in amounts up to not to exceed 15 days, were authorized by a $250) constituted 13 per cent of the total recent amendment to section 13 of the Federal number and less than 1 per cent of the month's Reserve Act and special rates ranging between total discounts. 3 and 4 per cent have been announced for this Of the total bills discounted during the class of paper by all the Federal Reserve month 10.4 per cent was 10-day paper, i. e., Banks. maturing within 10 days from the day of dis- Discounts of commodity paper likewise in- count by the Federal Reserve Banks; 26.9 per cluded in the monthly total aggregate $1,636,300 cent 30-day paper; 27.3 per cent 60-day paper, as against $507,500 in August and an average and 28.7 per cent 90-day paper. Less than of $1,299,000 for the eight months of the present $1,000,000 is represented by the amount of year. Nearly all of this paper was handled by 6-month paper, i. e., agricultural and live stock the Richmond, Atlanta, and St. Louis banks. paper with maturities in excess of 90 days at During the present year the discounts of com- the time of discount by the Federal Reserve modity paper totaled $12,028,400 of which Banks, the Chicago and Dallas banks reporting nearly 90 per cent was secured by cotton, while over 60 per cent of this class of paper. the total since September 8, 1915, the date On the last Friday of the month the banks when special lower commodity paper rates first held a total of $25,953,000 of discounted paper, went into effect, was $22,343,500, handled by compared with $27,032,000 about a month seven banks. before, and $30,033,000 on the corresponding Discounts of trade acceptances (two-name date in 1915. Nearly 60 per cent of the dispaper) figure in the above monthly total to an counted paper held about the end of the month amount of $583,500, compared with $230,400 was the share of the three southern banks, in August and an average of $279,000 for the compared with 62.5 per cent about the end of Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

640 FEDERAL RESERVE BULLETIN. NOVEMBER 1,1916. August, 1916, and 68.5 on the nearest date in growing number of banks in agricultural comthe past year.. munities is being accommodated through the Of the 7,624 member banks only 448, or rediscount of farmers7 paper. The number of less than 6 per cent, figure in the list of banks southern banks rediscounting during Septemaccommodated through the discount of paper ber was 213, compared with 371 reported the during the past month. The largest number, month before, and 416 in September of the past 85, is shown for the Chicago district, where a year. Commercial paper, exclusive of bankers' acceptances, rediscounted by each of the Federal Reserve Banks during the month of September, 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 5 r 0 $ 0 2 . 50O 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 , $ O 2 6 ,5 O 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. Percent. *S Banks. Boston.. .-.— 1.0 3.0 1.8 9.9 92.8 277.1 450.0 82 835.6 1.6 5.8 $10,190 New York. , 2.1 3.4 12.3 73.5 165.4 121.9 182.0 133 560.6 2.6 4,210 Philadelphia 0.5 4.7 10.7 11.6 28 57.9 182.0 195.2 83.7 169 546.3 3.2 3,230 Cleveland .6 1.5 6.3 9.6 64 127.9 107.7 75.0 551.4 151 880.0 2.9 6.2 5,830 Richmond... 3.2 27.8 .98.1 235 189.4 246 442.6 527.2 217.7 987.61.,111 2,493.6 21.3 17.4 2,240 Atlanta (including New- Orleans branch) , 2.3 23.9 73.5 213 170.1 166 264.4 794.1 396.8 984 2,420.8 18.9 16.9 2,460 Chicago 1.8 14.5 66.5 210166.6 243 414.2 683.4 289.8 682.1 921 2,318.9 17.7 16.2 2,520 St. Louis .5 11.0 46.6 63.7 115 190.5 376.7 353.7 681.0 554 1,723.7 10.6 12.1 3,110 Minneapolis 1.7 6.1 58.1 82 125.1 113.2 38.7 233 342.9 4.5 2.4 1,470 Kansas City 2.9 16.5 39.1 89 145.5 124.8 63.9 261 393.9 5.0 2.8 1,510 Dallas 10 7.8 22.3 65.0 159 270.9 475.8 314.2 29 550.8 550 1,707.6 10.5 11.9 3,100 San Francisco 2.5 4.7 6.6 11 18.8 14.0 65 84.8 1.2 1,300 Total. 12610.9 561101.4 899 357.71,028 793.91,249 2,141.2 899 3,681.3293 2,358.0 159 4,864.3 5,21414,308. 7100.0100.0 2,740 PERCENTAGES OF AMOUNTS OF EACH CLASS TO TOTAL. Banks. To $100. O to v e $ r 2 $ 5 1 0 0 . 0 O to v e $ r 5 $ 0 2 0 5 . 0 O to v $ e 1 r ,0 $5 0 0 0 0 . O to v e $ r 2 $ ,5 1 0 ,0 0 0 . 0 O to v e $ r 5 $ ,0 2 0 ,5 0 0 . 0 O to v $ e 1 r 0 $ , 5 0 , 0 0 0 0 . 0 $1 O 0 v ,0 e 0 r 0. Total. Boston 0.1 0.4 0.2 1.2 11.1 33.2 53.8 100.0 New York .4 .6 2.2 13.1 29.5 21.7 32.5 100.0 Philadelphia 0.1 .9 2.0 2.1 10.6 33.3 35.7 15.3 100.0 Cleveland .1 .2 .7 1.1 14.5 12.2 8.5 62.7 100.0 Richmond .1 1.1 3.9 7.6 17.8 21.2 8.7 39.6 100.0 Atlanta (including New Orleans branch) .1 1.0 3.0 7.0 10.9 16.4 28.8 100.0 Chic ago — .1 .6 2.9 7.2 17.8 29.5 12.5 29.4 100.0 St. Louis .6 2.7 3.7 11.1 21.9 20.5 39.5 100.0 Minneapolis .5 1.8 16.9 36.5 33.0 11.3 100.0 Kansas City .7 4.2 9.9 37.0 31.7 16.2 100.0 Dallas.... .5 1.3 3.8 15.9 27.9 18.4 32.2 100.0 San Francisco 3.0 5.5 7.8 22.2 45.0 16.5 100.0 Total. .7 2.5 5.5 15.0 25.7 16,5 34.0 100.0 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

NOVEMBER 1,1916. FEDERAL BESEEVB BULLETIN. 641 Commercial paper, exclusive of open-market purchases, discounted during September by each of the Federal Reserve Banks, distributed by States, and maturities as of date of discount. [In thousands of dollars.] Paper maturing— Number of Number of Total Districts and States. m b e a m nk 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 A i f t b t h e u i r n t 1 3 0 0 w A i f t b t h e u i r n t 3 6 0 0 w A i f t b h te u i r n t 6 9 0 0 A d f a te 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 67 1 6.3 6.3 Massachusetts .... 158 3 60.2 21.8 522.1 65.0 669.1 56 Rhode Island . . . 17 1 loO. 0 150.0 48 1 1.0 9.2 10.2 Total 402 6 61.2 181.0 522.1 71.3 835.6 District No. 2—New York: Connecticut. .. 15 New Jersey . ... 129 1 20.0 20.0 New York .. . . 482 8 48.0 300.3 60.7 128.9 2.7 540.6 Total . 626 9 68.0 300.3 60.7 128.9 2.7 560.6 District No. 3—Philadelphia: Delaware 24 New Jersey 72 1 2.5 1.0 3.5 Pennsylvania 534 7 472. 9 35.4 8.6 25.8 .1 542.8 Total 630 8 472.9 37.9 9.6 25.8 .1 546.3 District No. 4— Cleveland: Kentucky 70 3 2.7 6.9 16.1 25.7 Ohio : 374 9 291.1 407.6 126.7 27.8 1.1 854.3 Pennsylvania 299 West Virginia 13 Total 756 12 293.8 414.5 142.8 27.8 1.1 880.0 District No. 5—Richmond: District of Columbia 15 1 40.3 40.3 Maryland 96 2 5.6 27.4 32.4 North Carolina 81 24 212.5 568.5 211.4 362.6 1.4 1,356.4 South Carolina 79 26 2.5 121.4 398.8 197.5 1.0 721.2 Virginia. 145 19 35.4 160.7 91.0 5.2 292.3 West Virginia 104 3 10.6 24.1 16.3 51.0 Total 520 75 215.0 735. 9 800.0 735.1 7.6 2,493.6 District No. 6—Atlanta: Alabama - . .. . .. 93 17 70.3 84.0 163.4 3.0 320.7 Florida 55 9 48.4 76 7 122.9 248.0 Georgia.. . . . . .. 110 22 1.5 105.9 379.4 293.4 7.9 788.1 Louisiana 21 5 3.6 9 1 219.9 232.6 Mississippi 18 Tennessee , 93 18 10.0 129.4 189.9 489.9 12.2 831.4 Total 390 71 11.5 357.6 739.1 1,289.5 23.1 2,420.8 District No. 7—Chicago: Illinois 318 16 143! 0 1,152.4 51.2 41.0 74.8 1,462.4 Indiana 196 6 7.5 32.1 21.2 11.0 71.8 Iowa ' . 353 59 5.7 54.0 190.8 270.1 241.4 762.0 Michigan . 76 2 6.0 .2 .8 1.0 .8 8.8 Wisconsin , 51 2 2.5 5.5 5.9 13.9 Total.. . . 994 85 154. 7 1,214.1 277.4 3"38.8 333.9 2,318.9 District No. 8—St. Louis: Arkansas 67 7 10.0 44.3 81.3 32.8 168.4 Illinois 157 9 2.8 8.0 25.6 19.9 56.3 Indiana 61 1 .3 .5 "•.8 Kentucky. 67 2 200.0 8.7 22.4 231.1 Mississippi 18 4 59.8 90.6 7.1 157.5 Missouri 80 6 1.0 121.4 57.8 12.7 192.9 20 8 2.0 252.5 254.9 399.8 7.5 916.7 Total 470 37 212.0 309.3 548.1 607.1 47.2 1,723.7 District No. 9—Minneapolis: Michigan .... 32 Minnesota 284 29 11.9 53.8 78.0 111.1 254.8 Montana.... . 74 2 3.3 • 7.1 9.7 6.4 26.5 North Dakota 155 3 15.7 10.2 .3 26.2 South Dakota 125 5 3.1 12.6 11.3 27.0 Wisconsin 88 2 5.3 2.9 .2 8.4 Total 758 41 20.5 82.6 110.7 129.1 342.9 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

642 FEDERAL RESERVE BULLETIN. NOVEMBER 1,1916. Commercial payer, exclusive of open-market purchases, discounted during September by each of the Federal ReserveBanks\ distributed by States, and maturities as of date of discount—Continued. [In thousands of dollars.] Paper maturin Number of Total Districts and States. N m um em b b er e r of ac b co a m nk m s o- After 10 After 30 . After 60 com pa m p e e r r cial banks. dated. Within 10 but but " but After 90 discounted. days. within 30 within 60 within 90 days. days. days. days. District No. 10—Kanas City: Colorado 121 2 4 0 19 1 33 1 1 9 58.1 Kansas 221 3 .9 5.9 5.1 35.8 47.7 Missouri 54 4 4.1 7.1 6.6 18.1 35.9 193 9 24.9 40.0 64.9 New Mexico 9 24 4 16 7 18 6 59 7 Oklahoma 303 9 0.2 4.1 20.8 83.4 14.2 122. 7 Wyoming 36 1 1.2 3.7 4.9 Total 937 29 .2 13.1 77.3 171.0 132.3 393.9 District No. 11—Dallas: Arizona 6 Louisiana 11 3 1 5 15.2 12 5 29.2 New Mexico 28 9 55.6 85.0 150.9 88.6 380.1 Oklahoma 33 3 41.7 26.4 46.5 114.6 Texas 543 52 160.1 481.5 362.4 179. 7 1,183. 7 Total 621 67 258.9 608.1 572.3 268.3 1,707.6 District No. 12—San Francisco: Alaska 1 Arizona 7 California 261 6 4.5 2.8 24.5 29.1 15.0 75. £ Idaho * 58 1 8 1 8 2.6 Nevada 10 Oregon 82 1 2.1 4.2 6.3 Utah 23 Washington 78 Total 520 8 4.5 5.7 30.5 29.1 15.0 84.8- KECAPITULATION. [In thousands of dollars.] Paper maturing- Districts and cities. N m b u e a m m n o k f b b s e e . r r m N o a f o c u b c d m o a a m b n te e k d - r s , 1 W 0 d it a h y in s. d A w a f y i te t s h r b i 1 n u 0 t d A w a f y i te t s h r b i 3 n u 0 t d A w a f y t i e s th r b i 6 n u 0 t 90 A d ft a e y r s. T p c o m a o p t u a e e n r l r c t c e d i o a d i m l s . - - Per cent. 30 days. 60 days. 90 days. No. 1—Boston 402 61.2 181.0 522.1 71.3 5.8 No. 2—New York 68.0 300.3 60.7 128.9 2.7 560.6 3.9 No. 3—Philadelphia... 472.9 37.9 9.6 25.8 .1 e 546.3 3.8 No. 4—Cleveland 756 293.8 414.5 142.8 27.8 1.1 880.0 6.2 No. 5—Richmond 520 215.0 735.9 800.0 735.1 7.6 2.493.6 17.4 No. 6—Atlanta 390 11.5 357.6 739.1 1,289.5 23.1 2,420.8 16.9 No. 7—Chicago 994 154.7 1,214.1 277.4 333.9 2.318.9 16.2 No. 8—St. Louis 470 212.0 309.3 548.1 607.1 47.2 1.723.7 12.1 No. 9—Minneapolis 758 20.5 82.6 110.7 129.1 342.9 2.4 No. 10—Kansas City... 937 .2 13.1 77.3 171.0 132.3 393.9 2.8 No. 11—Dallas 621 258.9 608.1 572.3 268.3 1,707.6 11.9 No. 12—San Francisco. 520 *4.*5" 5.7 30.5 29.1 15.0 84.8 Total for September. 7,624 448 1,493.8 3.848.8 4,107.4 960.4 14,308.7 100.0 Percent 10.4 ' 26.9 27.3 28.7 6.7 100.0 Total for January-September, 1916. 14,532.4 25,075.5 26,554.2 33,587.8 14,637.3 114,387.2 Total for January-September, 1915. 18,792.3 41,196*. 4 39,599.5 13,032.3 112,620.5 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

NOVEMBER 1,1916. FEDERAL RESERVE BULLETIN. 643 Trade acceptances discounted by each Federal Reserve Bank from Sept. 2, 1915, date of first discount, to Sept. 80,1916. Federal Reserve Bank. T De o 1 c 9 t . 1 a 5 l . 3 t 1 o , ber ^ , 1 a 9 m 16 - . 9 i f n o m T r o o 1 f t n 9 i a r 1 t l s 6 h t . s Federal Reserve Bank. T De o 1 c 9 t . 1 a 5 l . 3 t 1 o , b S e e r, p t 1 e 9 m 16 - . 9 i f n o m T r o o 1 f t n 9 i a 1 r t l s 6 h t . s B ost on $7,100 $35,600 St. Louis $167,800 $189,300 $441,300 New York. $5,700 5,600 Minneapolis... 600 Philadelphia 64,800 KansasiCity... 87,800 70,500 190,900 Cleveland 4,900 6,300 140,200 Dallas 160,800 84,600 178,100 Richmond 450,500 136,400 987,400 San Francisco. 74,200 32,100 Atlanta (including New Orleans branch) 1,007,100 89,300 731,300 Total.. 1,958,800 583,500 2,816,100 Chicago 8,200 Commodity paper discounted by each Federal Reserve Bank from Sept. 8, 1915, date of first discount, to Sept. 30,1916. Federal Reserve Bank. T D o 1 e 9 c t 1 a . 5 l . 3 t 1 o , b S e e r p , t 1 e 9 m 1 - 6. 9 i f n o m T r o o f 1 t n i 9 a r 1 t l s 6 h t . s* Federal Reserve Bank. T De o 1 c 9 t . 1 a 5 l . 3 t 1 o , b S e e r, p t 1 e 9 m 16 - . 9 i f n o m T r o o 1 f t n 9 i a 1 r t l s 6 h t . s Richmond $2,881,400 $512,700 $6,075,200 Kansas City... $360,000 Atlanta (including New Orleans Dallas $239,100 225,200 branch) 7,032,300 874,600 5,006,900 San Francisco. 37,200 $2,500 94,800 S t. Louis .' 99,800 246,500 246,500 Minneapolis 25,300 19,800 Total.. 10,315,100 1,636,300 12,028,400 Commodity paper discounted by each Federal Reserve Bank during the nine months ending Sept. SO, 1916, distributed by classes. Atlanta (including Class. Richmond. Ne le w a n O s r- St. Louis. Min l n is e . apo- K C a i n ty sa . s Dallas. Sa c n i s F co ra . n- Total. branch). $500 $500 6,800 6,800 Coffee 125,000 125,000 Cotton $6,029,500 4,358,000 $101,500 $218,200 $300 10,707,500 Flax $3,000 3,000 140,000 140,000 Hav . . .. 400 400 46,400 46,400 Maize. 2,900 7,000 9,900 Oats 29,200 1,000 30,200 Oil . .. $360,000 360,000 Peanuts • ------- .-.. .. 41,100 900 42,000 5,000 5,000 Raisins 7,600 7,600 •Wheat - 337,100 16,800 10,500 364,400 Miscellaneous • ................ 4,600 6,100 145,000 24,000 179,700 Total 6,075,200 5,006,900 246,500 19,800 360,000 225,200 94,800 12,028,400 Member banks' collateral notes discounted by each Federal Reserve Bank during the month of September, 1916. Federal Reserve Bank. b S e e r, p t 1 e 9 m 16 - . Federal Reserve Bank. b S e e r p , te 19 m 16 - . Philadelphia $25,000 St. Louis.... $200,000 Cleveland 350,000 Dallas 85,000 Richmond -• 460,000 Atlanta (including New Orleans branch) 140,850 Total. 1,260,850 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

644 FEDEKAL RESERVE BULLETIN. NOVEMBER 1,1916. Amounts of commercial paper, exclusive of bankers' acceptances, held by each Federal Reserve Bank on Sept. 29, 1916+ distributed by maturities. Paper maturing— Federal Reserve Bank. W d it a h y in s. 10 A w ft i e t r h i 1 n 0 3 b 0 u t A w fte it r h 3 in 0 b 60 u t A w fte it r h 6 in 0 9 b 0 ut A d ft a e y r s 9 . 0 Total. Per cent. days. days. days. Boston. $240, 700 $132,600 $385,700 $46,000 $805,000 3.1 N Ph e i w la Y de o lp r h k i . a ... 1 2 5 2 6 , , 7 1 0 0 0 0 2 4 0 8 5 , , 6 4 0 0 0 0 3 2 6 7 8 , , 5 2 0 0 0 0 . 5 22 2 , , 6 5 0 0 0 0 $2,900 7 1 8 2 2 4 ; , 3 2 0 0 0 0 3 . . 5 0 Cleveland 356; 100 110,100 133,300 35,800 3,300 638,600 2.5 Richmond 1,443,000 1,449,600 1,746,500 605,000 24,100 5,268,200 20.3 Atlanta 749, 000 1,065,800 1,398,800 660,700 32,200 3,906,500 15.1 Chicago 289,900 355,000 744,400 589,100 469,100 2,447,500 9.4 St. Louis 224,500 593,900 705,300 520,400 48,000 2,092,100 8.1 Minneapolis 325,800 184,600 678,700 456,800 235,700 1,881,600 7.2 Kansas City 180,800 677,100 318,400 253,900 184,500 1,614,700 6.2 Dallas...... 1,288,500 1,224,100 2,219,700 835,800 471,200 6,039,300 23.3 San Francisco , 52,100 85,400 100,900 68; 100 46,300 352,800 1.3 Total. 5,329,200 6,132,200 8,827,400 4,146, 700 1,517,300 25,952,800 100.0 Percent 20.5 23.6 34.0 16.0 5.9 100.0 Amounts held on Oct. 1,1915 4,168.6 8,020. 6 11,518.4 4,875.3 1,451.0 *"30,' 633! 9' P er cent 13.9 26.7 38.4 16.2 4.8 100.0 ACCEPTANCES. Acceptances bought in open market and held by Federal Reserve Banks as per schedules on file on dates specified, distributed by classes of accepting institutions. [In thousands of dollars.] Bankers' acceptances. Bankers' acceptances. Trade Trade Date. b M a b n e e k m r s - . c T n o N r i m e u o s s p n . t a m - e b m S a t n b a k e te s r . ba P b n a r k i n s v k . a s t . e Total. m i b a n a c o a n c o u r c e p k g e p e e h s t n t t - . a a c T n c o c e e t p a s t l . - Date. b M a b n e e k m r s - . c T n o N r i m e u o s s p . n t a m - e b m S a t n b a k e te s r . ba P b n r a k i n v s k a .' t s e . Total. i m a b n a c o a n c o u r c e p k 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 . - 1915. 1916. A Fe p b r. . 2 5 2 3,6 9 5 3 3 7,820 i5 110 11,5 9 9 3 3 11,5 9 9 3 3 A M p a r. y l 24 2 2 3 4 , , 5 8 6 7 6 5 ' 1 1 5 5 , , 1 4 9 0 6 0 5 5 8 8 4 5 3 3 , , 5 4 0 3 4 0 4 44 2 , , 2 8 9 5 0 0 1 1 , , 4 4 3 7 8 7. 4 4 5 4 , , 7 2 6 8 7 8 -May 3 5,038 8,189 10 110 13,347 13,347 May8 25,058 15,750 671 3,493 44,972 1,518 46,490 June 7 5,242 4,516 10 192 9,960 9,960 MavlS.. 26,633 15,372 773 4,960 47,738 1,635 49,373 July3 4,342 5,267 161 9,770 9,770 May 22 26,639 16,490 690 6,038 49,857 2,006 51,863 Aug. 2 5,350 5,407 26* 352 11,129 11,129 May 29 26,104 16,541 690 5,895 49,230 2,037 51,267 Sept.6 6,087 6,305 20 472 12,884 12,884 June 5 24,680 17,029 644 7,007 49,360 2,208 51,568 Oct.4 9,000 4,898 132 343 14,373 14,373 June 12. 27,354 19,209 622 7,865 55,050 2,310 57,360 Nov.! 8,477 4,331 253 204 13,265 13,265 June 19...... 32,011 19,490 560 9,067 61,128 2,054 63,182 Dec. 6 12,311 5,172 275 396 18,154 18,154 June 26 33,155 18,722 552 11,009 63,438 1,958 65,396 July3 32,989 18,921 471 11,830 64,211 3,422 67,633 > 1916. July 10 34,144 20,201 620 11,827 66,792 3,052 69,844 Jan. 3..;.... 15,494 7,160 362 822 23,838 23,833 July 17 40,497 22,309 593 13,193 76,592 3,685 80,277 Jan. 10 16,492 8,057 370 938 25,857 25,857 July 24...... 41,514 22,327 610 12,977 77,428 3,651 81,079 Jan.17 16,908 7,655 425 1,010 25,998 180 26,178 July 31 41,395 21,437 724 13,619 77,175 3,722 80,897 Jan. 24 16,348 8,070 363 1,441 26,222 180 26,402 Aug. 7 ,.. 39,695 19,060 738 13,940 73,433 4,225 77,658 Jan.31 15,834 8,174 356 1,510 25,874 180 27,054 Aug. 14 41,536 18,144 754 13,443 73,877 4,387 78,264 Feb.7 15,681 7,876 336 1,456 25,349 489 25,838 Aug. 21 43,058 19,849 736 12,623 76,266 3,748 80,014 Feb. 14 17,581 7,985 347 1,851 27,764 528 28,292 Aug. 28 43,061 20,716 734 12,673 77,184 3,815 80,999 Feb. 21. 17,661 8,194 392 1,841 28,088 • 460 28,548 Sept. 4 41,413 20,356 726 12,491 .74,986 3,673 78,659 Feb. 28.:.... 17,436 8,755 408 1,841 28,440 460 28,900 Sept. 11 39,766 20,747 760 11,531 72,847 2,676 75,523 Mar. 6 17,182 8,670 408 1,781 28,041 462 28,503 Sept. 18 42,533 22,105 743 11,443 76,824 2,673 79,497 Mar. 13...... 20,323 10,032 470 1,631 32,456 546 33,002 Sept. 25 40,309 22,636 711 10,795 74,451 2,796 77,247 Mar, 20 20,563 11,280 408 2,467 34,718 678 35,396 Oct.2 37,798 21,782 712 9,944 70,236 2,306 72,542 Mar.27 21,128 12,864 411 3,078 37,481 629 38,110 Oct.9 36,957 23,195 705 10,251 71,108 2,048 73,156 Apr. 3. 21,000 13,573 473 3,262 38,308 722 39,030 Oct. 16 37,655 23,684 784 10,230 72,353 1,897 74,250 Apr. 10 22,239 14,864 476 3,405 40,984 874 41,858 Oct. 23 39,694 26,281 867 10,718 77,560 1,723 79,28a Apr. 17 22,135 15,028 564 3,442 41,169 1,321 42,490 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

NOVEMBER 1,1916. FEDEEAL RESERVE BULLETIN. 645 Amounts of acceptances held by each Federal Reserve Bank at close^ of business on Fridays, Sept. 29 to Oct. 20, 1916 t distributed by maturities. [In thousands of dollars.] Acceptances maturing- B to 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 a i n ty sa . s Dallas. c F S i r s a a c n n o - . Total. Within 10 days: Sept. 29 5,542 2,356 1,387 1,000 378 1,240 1,265 631 159 24 1,770 16,078 Oct. 6 413 4,358 1,931 819 400 152 436 515 328 92 144 1,100 10,688 Oct. 13 853 3,250 1,095 1,025 103 174 526 723 604 139 71 855 9,478 Oct. 20 1,296 3,478 1,426 1,134 429 652 642 412 1,009 11,315 From 11 to 30 days: Sept. 29 1,587 6,345 2,504 1,518 330 807 832 922 631 235 120 1,283 17,114 Oct. 6 1,711 6,291 2,903 2,142 103 1,191 1,230 1,948 976 517 1,707 20,719 Oct. 13 1,837 5,706 3,612 1,894 613 1,122 1,223 1,827 797 755 1,498 20,884 Oct. 20 3,105 4,217 2,770 1,450 644 1,242 1,642 657 fi% 957 17,618 From 31 to 60 days: Sept. 29....... 4,851 7,079 3,250 2,166 719 763 2,297 2,161 1,325 840 2,246 27,697 Oct. 6 5,773 6,018 2,831 1,800 719 827 2,005 1,330 1,061 67? 1,818 24,854 Oct. 13 i 6,245 6,611 3,331 '2,394 481 877 2,076 1,439 902 391 150 2,038 26,935 Oct. 20 5,189 7,569 4,478 2,392 528 991 2,170 1,915 978 377 150 2,420 29,157 From 61 days to 3 months: Sept. 29 3,482 5,563 3,275 1,492 297 1,179 1,278 1,195 464 182 1,329 19,736 Oct. 6 2,169 6,481 3,665 1,481 447 1,588 1,544 1,332 462 198 1,810 21,177 Oct. 13. 1,266 6,968 3,068 920 582 1,563 1,617 1,185 576 395 1,940 20,080 Oct. 20 1,623 9,044 3,791 1,306 685 1,385 1,703 1,056 720 645 100 2,303 24,361 Total acceptances held: Sept. 29 10,246 24,529 11,385 6,563 2,346 3,127 5,647 5,543 3,051 1,416 144 80,625 Oct. 6 10,066 23,148 11,330 6,242 1,669 3,758 5,215 5,125 2,827 1,479 144 6,435 77,438 Oct. 13 1 10,201 22,535 11,106 6,233 1,779 3,736 5,442 5,174 2,939 1,680 221 6,331 77,377 Oct. 20 11.213 24,308 12,465 6,282 1,880 3,672 5,757 5,262 2,767 1,906 250 82,451 Distribution by maturities of acceptances bought in the open market by each Federal Reserve Bank during the calendar year 1915, and the first 9 months of 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 Ri o c n h d - . b ( i O n i r n g r a c l n e l N c u a e h n d w s ) - . Ch g i o c . a- 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. S F ci a r s a n c n o - . T t s e f o y o m t s r a - . l Within 30 days: Calendar year, 1915 497 1,246 695 101 7 156 103 45 61 2,980 6 Ju m ly o , n 1 t 9 h 1 s 6 ending June, 1916 350 4 2 - , , 0 3 7 8 28 4, 7 5 5 5 4 2 3 4 2 0 2 2 9 57 0 9 5 270 4 1 8 3 0 3 "n 2 3 1 50 5 1 3 5 9 2 1 4 1, , 5 8 5 0 3 5 August, 1916 191 1,477 983 41 400 10 149 3,719 September, 1916 163 317 634 20 1,781 617 300 31 227 4,118 Total for 9 months, 1916 704 8,560 6,923 785 3,665 887 913 71 65 37 426 1,159 24,195 After 30 but within 60 days: Calendar year, 1915 2,137 2,377 1,464 746 19 816 374 191 183 750 6 months ending June, 1916 1,433 5,083 4,016 1,267 961 261 1,840 1,151 630 459 2,299 19,380 July, 1916 4 1,169 739 406 62 8 849 294 69 619 4,219 August, 1916 87 1,101 609 855 46 250 362 382 216 311 759 4,978 September, 1916 723 1,227 1,934 489 749 339 871 887 299 187 474 8,179 Total for 9 months, 1916 2,247 8,560 7,298 3,017 1,818 858 3,922 2,714 1,214 957 4,151 36,756 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 6 months ending June, 1916 24,049 34,435 10,959 5,472 2,126 5,389 4,321 2,500 1,635 5,847 96,733 July, 1916 1,391 11,161 3,556 2,855 238 404 1,948 2,036 1,262 2,628 27,479 August, 1916.. 4,062 5,508 2,069 1,257 666 1,390 1,335 827 787 500 1,349 19,750 September, 1916 3,787 6,940 4,023 2,278 "'297' 1,190 1,696 1,561 702 248 2,068 24,790 Total for. 9 montns, 1916 33,289 58,044 20,607 11,862 535 4,386 10,423 9,253 5,291 2,670 500 11,892 168,752 Total acceptances bought: Calendar year, 1915.; 14,105 25,834 7,565 2,963 250 72 5,782 1,801 1,455 1,788 3,230 64,845 6 months ending June, 1916 25,832 44,226 19,527 7,061 1,540 2,657 7,362 5,472 3,151 2,103 50 8,685 127,666 July, 1916 1,395 14,368 5,049 3,663 1,205 412 3,277 2,401 1,334 3,399 36,503 August, 1916 4,340 8,086 3,661 2,153 446 916 1,752 1,717 1,053 1,098 649 2,576 28,447 September, 1916 4,673 '8,484 6,591 2,780 2,827 2,146 2,867 2,448 1,032 463 227 2,542 37,087 Total for 9 months, 1916 36,240 75,164 34,828 15,664 6,018 6,131 15,258 12,038 6,570 3,664 926 17,202 229,703 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

646 FEDERAL RESERVE BULLETIN. NOVEMBER 1,1916. Distribution by sizes of acceptances bought in the open market by all the Federal Reserve Banks during September, and for the first 9 months of 1916. To $5,000. To $10,000. To $25,000. To $50,000. To $100,000. Over $100,000. Total. Acceptances bought in open market. September, 1916: Bankers' acceptances^. 501 1,429,342 370 2,833,240 630 10,782,869 164 6,795,609 6,836,652 37 $7,197,162 1,780i$35,874,874 96.7 Trade acceptances 23 75,097 75 684,700 30 411,837 1 40,000 1292 1,211,634 3.3 T P o e t r a c l ent. 524 1,504,4 4 3 .1 9 445 3,517,9 9 4 . 0 5 660 11,194 3 , 0 7 . 0 2 6 1656,835, 1 6 8 0 . 9 4 D, 830, 1 0 8 0 . 2 4 37 7,197, 1 1 9 6 . 2 4 1,909 37,086,508 100.0 Total acceptances bought during: August, 1916 , 327 $916,682 232 $1,888,457 422 $7,835,547 131 If 5,340,003 69 $5,744,106 35 $6.,. 721,610 1216 $28,446,405 July, 1916. , 1,633,337 495 4,026,432 80912,830,111 185 7,662,059 " 5,065,021 5,286,683 2', 112 36,503,643 June, 1916 562 1 533,168 737 6,238,168 853 13,739,638 191 8,209,613 6,763,226 5,913,336 2,463 42,397,149 May, 1916. ., 335 1,012,891 219 1,755,224 312 5,960,425 108 3,262,880 5,698,417 4,221,630 1,059 21,911,467 Ajpfil, 1916.... ., 847,351 281 2,305,281 313 5,420,116 94 3,896,184 2,697,334 3,332,850 1,000 18,499,116 March, 1916 , 941,908 234 1,983,554 356 6,578,432 109 4,539,671 5,095,263 3,779,223 1,071 22,918,051 February, 1916 267 789,675 159 1,307,989 196 3,548,326 49 1,830,851 1,613,614 3,326,375 707 12,416,830 January, 1916 194 546,959 220 1,720,758 217 4,113,726 47 1,857,477 1,284,593 9,523,513 Total acceptances bought during 9 months ending September, 1916 3,292 9,726,410 3,022 24,743,803 4,138 71,221,027 1,079 43,434,347492 40,798,226 209 39,778,869 12,232 229,702,682 1 Of the above total, bankers' acceptances totaling $34,103;182 were based on imports and exports, and $1,771,692 on domestic trade transactions. 2 All trade acceptances were drawn abroad on importers m the United States and indorsed by foreign banks. Amounts of short-term investments (municipal warrants) held by each Federal Reserve Bank at close of business on Fridays, Sept. 29 to Oct. 20, 1916, distributed by maturities. [In thousands of dollars.] Warrants maturing— Boston. Y N o e r w k. d P el h p i h la ia - . C la le n v d e . - m R o ic n h d - . la A n t t - a. c C a h g i o - . Lo S u t. is. M ap i o n l n i e s. - K C a i n ty sa . s Dallas. c F S i r s a a c n n o - . Total. Within 10 days: Sept.29 15 42 697 76 399 25 25 50 1,329 Oct. 6 15 659 200 874 Oct.13 75 19 679 363 15 59 8 18 1,236 Oct. 20 754 366 1,027 260 232 195 109 265 3,208 From 11 to 30 days: Sept. 29 784 721 366 368 810 232 195 110 265 3,851 Oct. 6 , 2,391 2,300 1,525 1,051 1,455 600 587 282 859 11,050 Oct. 13 3,020 2,850 1,852 1,063 1,472 720 508 274 911 12,673 Oct. 20 2,592 3,461 1,712 948 1,517 781 443 274 791 12,522 From 31 to 60 days: Sept. 29 2,787 2,545 1,327 923 3 1,608 706 469 223 816 11,407 Oct. 6 1,360 2,977 1,468 1,391 3 1,575 508 217 51 288 9,838 Oct. 13 748 3,669 1,173 1,460 5 1,545 373, 719 159 1,218 11,069 Oct. 20 592 3,403 1,173 1,317 5 1,393 156 668 118 1.317 10,142 From 61 to 90 days: Sept.29 512 1,038 581 141 10 679 283 242 345 3,839 Oct. 6. , 276 1,842 405 40 10 963 213 102 8 279 4,138 Oct. 13 209 983 405 224 5 675 418 122 152 473 3,666 Oct.20 ,. 226 818 238 685 5 595 357 102 152 398 3,576 From 91 days to 6 months: Sept. 29 434 569 70 523 10 276 642 264 346 18 450 3,602 .Oct. 6 375 569 56 523 61 276 247 264 346 18 450 3,185 Oct. 13 365 569 56 627 61 278 248 59 346 18 271 2,898 Oct. 20... 318 569 56 881 61 278 238 59 346 18 271 3,095 Total municipal warrants held Sept. 29... 4,532 4,873 2,386 2,652 86 289 4,138 1,510 1,277 359 1,926 24,028 Oct. 6 , 4,417 7,688 3,454 3,664 61 289 4,440 1,585' 1,252 359 1,876 29,085 Oct. 13 4,417 8,071 3,505 4,053 .61 291 4,303 1,585 1,754 611 2,891 31,542 Oct. 20 •. 4,482 8,251 3,545 4,858 61 291 4.003 1,585 1,754 671 3,042 32,543 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

NOVEMBER 1,1916. FEDERAL RESERVE BULLETIN. 647 Total investment operations of each Federal Reserve Bank during the month of September and 9 months ending September, 1916 and 1915. [In thousands of dollars.] Bills Bills b m ou a g rk h e t t i . n open Municipal warrants bought. United States bonds and Treasury notes. Tot o a p l e in ra v t e io st n m s. ent Bank. discounted for m ba e n m k b s e . rB a a a c n n c c k e e p e s t r . - s' 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 3 ce p n e t. r c 4 e p n e t r . 1 n - o y t e e a s r . Total. 1918 1915 Boston 835.6 4,644.0 29.0 4,673.0 1,584.8 1 584 8 7,093.4 1,621.3 New York.... 560.6 7,931.0 553.0 8,484.0 1,209.2 1,209.2 1,138.0 1,138.0 11,391.8 2,478.3 Philadelphia.. 546.3 6,360.0 231.0 6,591.0 434.2 434.2 7,571.5 2,056.5 Cleveland 880.0 2,620.0 167.0 2,787.0 264.1 57.2 321.3 750.0 7.0 757.0 4,745.3 2,304.9 Richmond 2,493.6 2,827.0 2,827.0 10.0 10.0 81.8 81.8 5,412.4 3,637.4 Atlanta 2,470.8 2,146.0 2,146.0 7.7 ii4.*9 122.6 4,739.4 3,198.0 Chicago 2,318.9 2,867.0 2,867.0 606.6 606.6 5,792.5 1,563.2 St. Louis 1,723.7 2,448.0 2,448.0 108.6 108 6 4,280.3 869.9 Minneapolis... 342.9 1,004.0 28.0 1,032.0 347.5 10.3 357.8 1.5 1.5 1,734.2 589.1 Kansas City... 393.9 463.0 463.0 6.1 6 1 863.0 1,919.4 Dallas. 1,707.6 227.0 227.0 215.0 215.0 2,149.6 2,686.5 San Francisco. 84.8 2,338.0 204.0 2,542.0 .288.4 41.3 329.7 3,956.5 631.8 Total: Sept., 1916.. 14,358.7 35,875.0 1,212.0 37,087.0 4,867.2 114.9 108.8 5,090.9 2,186.3 7.0 2,193.3 58,729.9 Sept., 1915.. 14,405.0 4,548.0 4,548.0 4,115.3 435.0 53.0 488.0 "23,"556."3" — 9 months ending Sept. 30, 1916......... 114,437.2219,612.510,091.2229,703.764,177.13,654.9 591.368,423.337,479.253,642.824,153.0 ,50.045,325.07457,889.27 9 months ending Sept. 30, 1915......... 112,620.5 37,796.0 37,796.0 52,277.4 6,676.752,320.3 9,177.05 211,870.95 Amounts of United States bonds and 1-year Treasury notes sold by all Federal Reserve Banks during tht month of September, 1916, [In thousands of dollars.] B to 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 in o n li e s - . K C a i n ty sa . s Dallas. F c r S i a s a c n n o - . Total. 2 per cent bonds 3 per cent bonds 70.6 630.0 228.0 95.1 192.0 280.0 35.0 104.7 96.0 1,730.8 4 per cent bonds 1-year Treasury notes ... . 2 032 0 2,032.0 Total sales 70.0 2,662.0 228.0 95.1 192.0 280.0 35.0 104.7 96.0 3,762.8 CONVERSION OF 2 PER CENT UNITED STATES BONDS DURING 1916. Under authority of section 18 of the Federal 30-year conversion bonds and $4,785,000 1-year Reserve Act there was converted during the Treasury notes, while on October 1 the represent year a total of $30,000,000 of 2 per maining $10,135,200 of 2 per cent bonds were cent United States bonds into 3 per cent converted into $5,071,200 of 3 per cent long- 30-year bonds and 1-year Treasury notes. term bonds and $5,064,000 of 1-year Treasury The first conversion operation was effected on notes. April 1, 1916, when $10,290,600 of 2 per cent The result of the year's operations is the consols and Panamas were converted into conversion of 30,000,000 of 2 per cent bonds $5,900,600 of 30-year conversion bonds and into $15,761,000 of-3 per cent 30-year conver- $4,390,000 of 1-year Treasury notes, the newsion bonds and $14,239,000 of 3 per cent 1-year bonds and notes bearing 3 per cent interest. Treasury notes. On July 1 a total of $9,574,200 of 2 per cent The following exhibit gives the original bonds was converted into $4789200 3 per cent amounts allotted by the Federal Reserve ; ; Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

648 FEDERAL EESERVE BULLETIN. NOVEMBER 1,1916. Board (on the basis of capital) and the actual conversion privileges and deposited for conamounts converted for each Federal Reserve version their full quota of bonds. The differ- Bank: ence between the full quota of the above three banks and the amounts applied for by them, Amounts $1,918,900, was distributed among seven banks allotted by Amounts Federal Reserve Bank. Federal actually which had expressed a desire to convert bonds Reserve converted. Board. in excess of their original allotment. On September 30, 1916, the amount of 3 pel B N o ew sto Y n ork.... $ 6 2 , , 1 7 3 6 0 3 , , 5 9 0 0 0 0 $ 6 2 , , 4 0 7 0 6 0 , , 2 0 0 00 0 cent conversion bonds held by the Federal Re- C Ph le i v la e d la e n l d phia.. 2 3 , , 8 2 4 4 9 9 , , 1 6 0 0 0 0 2 3 , ,3 8 1 49 8 , ,0 00 0 0 0 serve Banks was $5,724,700, while the amount A Ri t c la h n m ta ond 1 1 , , 8 4 2 1 7 0 , , 6 6 0 0 0 0 2 1 , , 1 6 4 5 2 3 , , 8 9 0 0 0 0 of 1-year Treasury notes held by them was C St h . i c L a o g u o is 3 1 , , 6 5 3 2 5 3 , , 4 4 0 0 0 0 4 1 , , 0 7 3 8 5 6 , , 4 1 0 0 0 0 $6,703,000. The net amount of conversion M Ka in n n sa e s a p C ol i i t s y .. . . . 1 1 , , 3 6 9 4 8 4, , 0 6 0 0 0 0 1 1 , , 9 3 2 9 7 8 , , 6 6 0 0 0 0 bonds sold by the Federal Reserve Banks to D Sa a n ll a F s rancisco 1 2, , 1 4 5 1 4 2 , , 9 4 0 0 0 0 1 1 , , 0 4 0 1 0 2 , , 0 4 0 0 0 0 the end of September was $4,965,100, while the net amount of 1-year Treasury notes sold Total... 30,000,000 30,000,000 by them to that date was $2,472,000. It is seen that with the exception of Boston, Particulars of the conversion operations are Philadelphia, and San Francisco all the Federal presented in the following table prepared by Reserve Banks availed themselves of their the office of the Secretary of the Treasury: Public debt refunding operations conducted by the Secretary of the Treasury under authority of section 18 of the Federal Reserve Act during the calendar year 1916. [Prepared by the Office of the Secretary of the Treasury, Division of Loans and Currency.] 2 PER CENT BONDS OF THE UNITED STATES SUBMITTED BY FEDERAL RESERVE BANKS AND CANCELED. Apr. 1,1916. July 1,1916. Federal Reserve Bank. 2 per cent 2 per cent 2 per cent 2 per cent 2 per cent 2 per cent consols, Panamas, Panamas, Total. consols, Panamas, Panamas Total. 1930. 1916-36. 1918-38. 1930. 1916-36. 1918-38. Atlanta $705,300 $705,300 $242,100 $107,500 $3,000 $352,600 Boston 500 000 500,000 Chicago ... 750,000 $150,000 $100,000 1,000,000 1,700,000 1,700,000 Cleveland 400,000 400,000 1,475,000 520,000 5,000 2,000,000 Dallas 1,059,300 1,059,300 Kansas Citv . . 820 600 820,600 412,400 412,400 Minneapolis 699 300' 699,300 New York 3,015,300 25,000 25,000 3,065,300 1,500,000 1,500,000 Philadelphia 1,424,600 1,424,600 712,200 712,200 913 800 913,800 456,900 456,900 R St i . c L hm ou o i n s d 761,700 761,700 380,800 380,800 San Francesco 1,000,000 1,000,000 Total 9,990,600 175,000 125,000 10,290,600 8,938,700 627,500 8,000 9,574,200 Oct. 1,1916. Total for year 1916. Federal Reserve Bank. 2 per cent 2 per cent 2 per cent 2 per cent 2 per cent 2 per cent consols, Panamas, Panamas, Total. consols, Panamas, Panamas, Total. 1930. 1916-36. 1918-38. 1930. 1916-36. 1918-38. Atlanta . . .. $596,000 $596,000 $1,543,400 $107,500 $3, 000 $1,653,900 Boston.. 1,500,000 1,500,000 2,000,000 2,000,000 Chicago 250,000 $730,000 $355,400 1,335,400 2,700,000 880,000 455,400 4,035,400 Cleveland..'. 818,000 100,000 918,000 2,693,000 520,000 105,000 3,318,000 Dallas 224,100 110,000 19,000 353,100 1,283,400 110,000 19,000 1,412,400 Kansas City 88,100 356,500 250,000 694,600 1,321,100 356,500 250,000 1,927,600 699 300 699,300 1 398,600 1,398,600 New York 1,422,900 385,000 103,000 1,910,900 5,938,200 410,000 128,000 6,476,200 Philadelphia 342,200 231,000 139,000 712,200 2,479,000 231,000 139,000 2,849,000 Richmond 609,600 162,500 772,100 1,980,300 162,500 2,142,800 St louis . .. 643,600 643,600 1,786,100 1,786,100 San Francisco 1,000,000 1,000,000 Total 7,193,800 1,975,000 966,400 10,135,200 26,123,100 2,777,500 1,099,400 30,000,000 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

NOVEMBER 1,1916. FEDERAL RESERVE BULLETIN. 649 Public debt refunding operations conducted by the Secretary of the Treasury under authority of section 18 of the Federal Reserve Act during the calendar year 1916—Continued. THIRTY-YEAR 3 PER CENT CONVERSION BONDS AND ONE-YEAR 3 PER CENT TREASURY NOTES ISSUED TO FEDERAL RESERVE BANKS. Apr. 1, 1916. July 1, 1916. Federal Reserve Bank. Co b n s o e v n r e i d e rs s s i , on no T O t r e n e s e a , - s y s u e e r r a y i r es • Total. Co b n s o e v n r e i d r e s s s i , on no T O t r e n e s e a , - s y s u e e r a r y i r es Total. 1916-46. 1 A 9 p 16 r. - 1 1 7 , . 1916-46. ». Atlanta . 355,300 350,000 705,300 176,600 176,000 352,600 Boston .*.... 250,000 250,000 500,000 Chicago . . . . 1,000,000 1,000,000 850,000 850,000 1,700,000 Cleveland . . . 200,000 200,000 400,000 1,000,000 1,000,000 2,000,000 Dallas 530,300 529,000 1,059,300 Kansas City . . .. . 416,666 410,000 820,600 206,400 206,000 412,400 Minneapolis 350,000 699,300 New York .. ". 349,300 1,532,000 3,065,300 750,000 750,000 1,500,000 Philadelphia 1,533,300 462,000 1,424,600 356,200 356,000 712,200 Richmond 962,600 456,000 913,800 228,900 228,000 456,900 St Louis 457,800 380,000 761,700 190,800 190,000 380,800 San Francisco 381,700 500,000 500,000 1,000,000 Total. 5,900,600 4,390,000 10,290,600 4,789,200 4,785,000 9,574,200 * Oct. 1, 1916. Total for 1916. Federal Reserve Bank. Conversion One-year 1 b s 9 o e 1 n r 6 i d - e 4 s s 6 , . no T t O r e e s c a , t s . s u e 1 r r , y ies Total. Co b n o v n e d rs s i . on T O r n n e o e a t - s e y u s e , r a y r Total. 1916-17. Atlanta 298,000 298,000 596,000 829,900 824,000 1,653,900 Boston . i 750,000 750,000 1,500,000 1,000,000 1,000,000 2,000,000 Chicago . 668,400 667,000 1,335,400 2,518,400 1,517,000 4,035,400 Cleveland • ... . .. 460,000 458,000 918,000 1,660,000 1,658,000 3,318,000 Dallas 177,100 176,000 353,100 707,400 705,000 1,412,400 Kansas City .. . . . 347,600 347,000 694,600 964,600 963,000 1,927,600 Minneapolis . 349,300 350,000 699,300 698,600 700,000 1,398,600 New York •. . .. 955,900 955,000 1,910,900 3,239,200 3,237,000 6,476,200 Philadelphia 356,200 356,000 712,200 1,675,000 1,174,000 2,849,000 Richmond . . . . . .. 386,100 386,000 772,100 1,072,800 1,070,000 2,142,800 St. Louis 322,600 321,000 643,600 895,100 891,000 1,786,100 San Francisco 500,000 500,000 1,000,000 Total . .. 5,071,200 5,064,000 10,135,200 15,761,000 14,239,000 30,000,000 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

650 FEDERAL RESERVE BULLETIN. NOVEMBER 1.1918. FEDERAL RESERVE BANK STATEMENTS. Resources and liabilities of the Federal Reserve Banks and of the Federal Reserve system at dose of business on Fridays, Sept. 29 to Oct. 20, 1916. RESOURCES. [In thousands of dollars.] B to o n s . - Y N o ew rk. 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 a i a t n s y - . Dallas. F c S i r s a a c n n o - . sy T s f o t o e t r a m l . Gold coin and certificates in vaults: Sept. 29. 8,219 157,324 11,721 14.S87 5,098 3,878 29,838 6,037 5,903 4,140 3,311 10,789 260,845 Oct. 6 -.. 8,454 168,972 8,425 14,836 3,997 3,886 29,019 4,263 6,017 4,176 2,981 10,600 265,626 Oct. 13 7,660 165,793 13,900 14,951 4,042 4,076 26,956 4,685 6,408 4,099 3,419 11,411 267,400 Oct. 20 8,300 154,461 13,403 15,170 4,339 4,027 29,793 4,973 6,213 4,098 3,560 13,178 261,515 Gold settlement fund: Sept. 29... 15,618 11,719 16,588 13,081 13,718 3,040 19,623 3,401 5,289 10,736 5,995 5,613 124,421 Oct. 6 9,305 3,767 19,121 14,063 16,419 2,781 24,336 5,430 3,465 10,287 7,093 3,374 119,441 Oct. 13....- 10,389 4,561 16,238 13,461 16,913 2,822 28,289 5,039 4,720 9,610 9,141 4,078 125,261 Oct.20...: 13,830 9,684 13,827 11,033 16,981 2,595 23,164 3,739 4,552 10,669 2,949 121,351 Gold redemption fund: 5 250 50 439 241 200 121 417 10 1,929 Oct. 6 5 250 50 81 440 237 200 73 30 121 413 10 1,910 Oct. 13 5 250 50 78 233 230 200 71 119 411 10 1,687 Oct. 20 5 250 50 72 229 224 200 71 118 159 10 1,418 Legal tender notes, silver, etc. : Sept. 29 140 3,293 291 1,018 78 575 805 1,132 22 223 31 7,811 Oct. 6 102 8,925 597 1,123 529 1,076 1,125 195 6 190 55 13,991 Oct. 13 80 7,148 274 1,117 561 625 1,160 191 5 81 69 11,377 Oct. 20 507 5,155 369 1,079 1,520 1,079 220 6 56 10,561 Total reserve: 23,982 172,586 28,650 28,772 19,333 7,734 50,466 10,650 11,425 15,019 9,946 16,443 395,006 Oct. 6 17,866 181,914 28,193 30.103 20,924 7,433 54,631 10,891 9,707 14,590 10,677 14,039 400,968 Oct. 13 .-- 18,134 177,752 30,462 29; 607 21,254 7,689 56,070 10,955 11,349 13,833 13,052 15,568 405, 725 Oct. 20 22,642 169,550 27,649 27,354 21,645 7,242 54,677 9,862 11,015 12,550 14,466 16,193 394,845 Five per cent redemption fund against Federal Reserve Bank notes: Sept. 29 400 100 500 Oct. 6 400 100 500 Oct. 13 370 370 Oct. 20 370 50 420 Bills discounted—members: Sept. 29 805 782 124 5,268 3,906 2,447 2,092 1,882 1,615 6,039 353 25,953 Oct. 6 758 1,097 108 365 4,489 3,800 2,505 2,229 1,642 1,459 4,908 296 23,656 Oct. 13 556 998 77 338 4,316 3,365 2,601 2,258 1,671 1,360 4,165 254 21,959 Oct. 20 712 788 276 360 3,959 3,181 2,802 2,085 964 3,671 235 21,365 Bills bought in open market: Sept. 29 ...... 10,246 24,529 11,385 6,563 2,346 3,127 5,647 5,543 3,051 1,416 144 6,628 80,625 Oct. 6 10,036 23,148 11,330 6,242 1,669 3,758 5,215 5,125 2,827 1,479 144 6,435 77,438 Oct. 13 .. 10,201 22,535 11,106 6,233 1,779 3,736 5,442 5,174 2,939 1,680 221 6,481 77, 527 Oct. 20 11,213 24,308 12,465 6,282 1,880 3,672 5,757 5,262 2,767 1,906 250 82,692 United States bonds: Sept. 29.... 2,922 2,728 2,662 6,254 1,019 1,508 8,303 2,694 3,307 9,617 2,896 2,634 46,544 Oct. 6 2,922 2,728 2,306 6,243 633 1,508 7,596 2,689 2,945 9,270 2,896 2,634 44,370 Oct. 13. 2,172 1,773 2,306 6,245 633 1,508 7,596 2,689 2,920 9,270 2,896 2,634 42,642 Oct. 20.. 2,172 1,719 2,306 5,787 633 1,210 7,596 2,368 2,920 9,270 2,720 2,634 41,335 One-year Treasury notes: Sept. 29 250 250 818 760 526 850 570 350 616 529 724 6,927 Oct.6 250 1,174 760 1,070 526 1,517 570 700 963 529 704 8,763 Oct. 13 1,000 955 1,174 760 1,070 526 1,517 570 700 529 10,444 Oct. 20 1,000 955 1,174 1,218 1,070 824 1,517 891 700 705 11,697 Municipal warrants: Sept, 29 ;...... 4,532 4,873 2,386 2,652 4,138 1,510 1.277 1,926 24,028 Oct. 6 4,417 7,688 3,454 3,664 4,440 1,585 1,252 359 1,876 29,085 Oct. 13 4,417 8,071 3,505 4,053 291 4,303 1.585 1,754 611 2,891 31,542 Oct. 20 4,482 8,251 3,545 4,858 291 4,003 1,585 1,754 671 3,042 32,543 Federal Reserve notes, net: Sept. 29 8,313 465 406 1,410 1,341 1,556 14,250 Oct.6 1,646 7,968 638 367 1,280 1,507 1,488 14,894 Oct. 13 1,590 8,745 693 330 1,289 1,251 1.382 15,280 Oct. 20 1,520 463 379 1,289 1,140 1^509 15,181 Due from other Federal Reserve Banks, net: Sept. 29 2,670 4,269 1,374 57 12,524 7,430 841 1,149 2,322 1,073 131,365 Oct. 6 6,381 2,254 1,186 1,414 7,246 7,462 3,503 1,665 744 4,484 i 26,232 Oct. 13 8,148 8,038 1,347 2,020 6,212 6,479 1,382 1,671 465 1,308 | 130,089 Oct. 20 3,857 12,522 "i,*794" 42 2,586 7,026 6,252 1,056 3,722 387 130,604 All other resources: 74 5,249 205 256 172 377 215 787 186 516 154 7,543 Oct. 6 69 227 223 416 167 287 656 129 81 135 464 191 3,045 Oct. 13.... 105 163 67 298 20 163 532 132 69 154 435 537 2,675 Oct. 20..., 7 180 159 341 261 245 81 151 277 497 2,630 Total resource; 46,241 219,310 46,695 50,571 30,172 17,319 86,162 30,704 23,551 30,377 22,492 31,491 632,741 Oct. 6.. 44,375 224,770 47,426 50,414 | 30.19919,015 85,086 30,680 24,164 30,320 20,462 32,147 628,951 Oct. 13. 46,323 229,030 49,390 47,864 30,480 19,298 85,562 29,842 24,035 29,912 21,763 31,735 638,253 Oct. 20.. 47,605 227,154 48,037 48,373 29,333 19,267 84,912 28,940 23,518 30,567 22,139 32,107 633,312 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

NOVEMBER 1, 1916. FEDERAL RESERVE BULLETIN. 651 Resources and liabilities of the Federal Reserve Banks and of the Federal Reserve system at close of business on Fridays, Sept. 29 to Oct. 20, 1916—Continued. LIABILITIES. [In thousands of dollars.] B to 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 a i a t n s y - . Dallas. F c S i r s a a c n n o - . sy T s f o t o e t r m al . Capital paid in: Sept. 29. ...... 5,024 11,602 5,222 5,997 3,325 2,491 6,687 2,794 2,597 3,043 2,691 3,920 55,393 Oct 6 5,024 11,902 5,224 5,997 3,325 2,493. 6,676 .2,794 2,597 3,043 2,689 3,920 55,684 Oct. 13 5,024 11,902 5,224 5,994 3,325 2,493 6,677 2,794 2,597 3,043 2,689 3,920 55,682 Oct 20 5,024 11,907 5,224 5,994 3,325 2,479 6,679 2,794 2,603 3,044 2,689 3,920 55,682 Government deposits: Sept 29 3,236 5,673 6,029 2,141 4,018 3,858 3,124 3,781 1,084 1,040 2,186 2,815 38,985 Oct. 6 2,580 2,945 3,678 2,301 4,417 3,924 3,262 3,999 1,124 881 1,956 2,904 33,971 Oct 13 2,147 3,203 3,410 1,244 2,872 3,176 2,825 2,170 1,049 538 1,789 2,092 26,515 Oct. 20 1,725 2,609 3,575 1,240 3,419 3,213 2,386 2,428 964 499 1,715 2,343 26,116 Member bank deposits, net: Sept. 29. 37,833 201,430 33,617 42,433 17,950 9,883 76,351 21,789 19,870 24,101 11,727 24,756 521,740 Oct 6. m, 603 205,944 32,271 42,116 18,441 11,408 75,148 21,648 20,443 24,177 12,504 25,316 526,019 Oct. 13 38,993 213,925 34,193 40,086 19,977 11,472 76,060 22,529 20,389 24,539 14,372 25,708 542 243 Oct. 20 40,690 212,633 32,166 41,139 18,626 11,158 75,847 21,629 19,951 24,986 13,448 25,829 538,102 Federal Reserve notes, net liability: Sept 29 4,763 1,065 2,340 1,160 3,888 13,216 Oct. 6 3,891 1,153 2 239 1,186 3,313 11,782 Oct. 13 4,171 2,124 2,349 759 2,913 12,316 Oct. 20 ........ . 3,826 2,386 2,089 1,006 2,589 11,896 Federal Reserve bank notes in circulation: Sept. 29 1,033 2,000 3,033 Oct. 6 1,033 1,033 Oct. 13 1,033 1,033 Oct. 20 . .. 1,032 1,032 Due to other Federal Reserve Banks, net: Sept. 29 605 1,739 Oct. 6. . 3.972 6,135 Oct. 13 6,441 540 ! Oct. 20 6,942 1,698 All other liabilities: Sept. 29. 148 88 116 22 374 Oct. 6 168 7 118 125 37 7 462 Oct. 13 159 122 135 33 15 464 Oct. 20 166 5 130 137 31 15 484 Total liabilities: Sept. 29 46,241 219,310 46,695 50,571 30,172 17,319 86,162 30,704 23,551 30,377 22,492 31,491 632,741 Oct. 6 ... 44,375 224,770 47,426 50,414 30,199 19,015 85,086 30,680 24,164 30,320 20,462 32,147 628,951 Oct. 13 46,323 229,030 49,390 47,864 30,480 19,298 85,562 29,842 24,035 29,912 21,763 31,735 638,253 Oct. 20 . . 47,605 227,154 48,037 48,373 29,333 19,267 84,912 28,940 23,518 30,567 22,139 32,107 633,312 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

652 FEDERAL RESERVE BULLETIN. NOVEMBER 1,1916, Circulation of Federal Reserve notes at close of business on Fridays, Sept. 29 to Oct. 20, 1916. [In thousands of dollars.] Boston. Y N o e r w k. P d h e il l- a- C la le n v d e . - m R o ic n h d - . A t t a la . n- c C a h g i o - . Lo S u t. is. M ap i o n l n is e . - K C a i n ty s . as Dallas. Fran- T f o o t r al phia. cisco. system. Federal Reserve notes issued to the bank: Sept. 29 10,337 78,414 7,606 9,121 12,536 19,040" 3,325 8,909 13,781 17,062 23,730 10,106 213,967 Oct.6 11,297 75,601 7,967 9,082 13,979 20,266 3,320 11,452 14,762 17,571 25,104 10,089 220,490 Oct. 13 11,249 77,603 8,006 8,947 14,814 20,705 3,314 12,436 14,743 18,331 25,658 10,076 225,882 Oct. 20 11,208 79,692 7,827 8,849 15,264 21,627 3,179 13,924 15,079 18,296 25,800 10,058 230,803 Federal Reserve notes in hands of bank: Sept. 29 759 8,313 465 406 307 1,687 1,410 447 1,341 540 198 1,556 17,429 Oct.6 1,646 7,968 367 1,868 1,280 1,108 1,507 454 173 1,488 19,126 Oct. 13..... 1,590 8,745 693 330 897 1,289 998 1,251 781 153 1,382 18,758 Oct. 20 1,520 8,881 463 379 494 1,135 1,289 1,258 1,140 534 157 1,509 18,759 Federal Reserve notes in circulation: Sept, 29 9,578 70,101 7,141 8,715 12,229 17,353 1,915 12,440 16,522 23,532 8,550 196,538 Oct.6... 9,651 67,633 7,329 8,715 13,350 18,398 2,040 10,344 13,255 17,117 24,931 8,601 201,364 Oct.13 9,659 68,858 7,313 8,617 14,165 19,808 2,025 11,438 13,492 17,550 25,505 8,694 207,124 Oct. 20 70,811 7,364 8,470 14,770 20,492 1,890 12,666 13,939 17,762 25,643 8,549 212,044 Gold and lawful money deposited with or to the credit of the Federal Reserve Agent: Sept. 29 10,337 78,414 7,606 9,121 7,466 16,288 3,325 6,122 13,781 15,362 19,644 10,106 197,572 Oct.6 11,297 75,601 7,967 9,082 9,459 17,245 3,320 8,105 14,762 15,931 21,618 10,089 204,476 Oct.13. 11,249 77,603 8,006 8,947 9,994 17,684 3,314 9,089 14,743 16,791 22,592 10,076 210,088 Oct. 20. ..: 11,208 79,692 7,827 10,944 18,106 3,179 10,577 15,079 16,756 23,054 10,058 215,329 Carried to net assets: Sept. 29 759 8,313 '465 406 1,410 1,341 1,556 14,250 Oct.6 . ......:.. 1,646 7,968 638 367 1,507 1,488 14,894 ' Oct. 13 1,590 8,745 693 330 1,251 1,382 15,280 Oct. 20 1,520 8,881 463 379 1,140 1,509 15,181 Carried to net liabilities: Sept. 29 4,763 1,065 2,340 1,160 3,888 13,216 Oct.6 3,891 1,153 2,239 1,186 3,313 11,7.82 Oct. 13 4,171 2,124 2,349 . 759 2,913 12,316 Oct. 20 3,826 2,386 2,089 1,006 2,589 11,896 Statement of Federal Reserve Agents' accounts at close of business on Fridays, Sept. 29 to Oct. 20, 1916. [In thousands of dollars.] B to 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 - . At t l a a . n- Ch go ic . a- Lo S u t. is. M ap i o n l n is e . - K C a i n ty sa . s Dallas. F c S i r s a a c n n o - . sy T s f o o t t e r a m l . Federal Reserve notes: Received from Comptroller- Sept. 29 , 20,380 143,400 15,480 15,160 20,000 26,660 12,600 21,000 22,620 33,600 13,800 354,160 Oct.6 24 880 143,400 15, i80 15,160 21,500 26,920 9,380 14,600 21,000 22,620 35,320 13,880 364,140 Oct. 13 24,880 143,400 15,480 15,160 22,500 27,920 9,380 16,560 21,000 22,620 35,320 13,880 368,100 Oct. 20 24,880 148,400 15.480 15,160 23,500 28,420 16,560 21,000 22,620 35,320 13,880 374,600 Returned to Comptroller— Sept. 29 , 5,523 40,426 4,834 2,739 5,314 3,126 1,174 1,929 589 1,605 1,214 72,042 Oct.6 5,563 45,639 4,873 2,778 5,371 3,169 1,179 1,946 608 1,636 1,231 77,588 Oct.13 5,611 46,037 5,074 2,913 5,536 3,230 1,185 1,962 627 1,676 3,621 1,244 78,716 Oct. 20.... 5,652 46,348 5,253 3,011 5,586 3,308 1,320 1,976 651 1,711 3,760 1,262 79,838 Chargeable to Federal Reserve Agent- Sept. 29 14,857 102,974 10,646 12,421 14,686 23,534 8,206 10,'671 20,411 21,015 30,031 12,666 282,118 Oct.6 19,317 97,761 10,607 12,382 16.129 23,751 8,201 12,654 20,392 20,984 31,725 12,649 286,552 Oct.13 19,269 97,363 10,406 12,247 16,964 24,690 8,195 14,598 20,373 20,944 31,699 12,636 289,384 Oct. 20 19,228 102,052 10,227 12,149 17,914 25,112 8,060 14,584 20,349 20,909 31,560 12,618 294,762 In hands of Federal Reserve Agent- Sept. 29 4,520 24,560 3,040 3,300 2,150 4,494 4,881 1,762 6,630 3,953 6,301 2,560 68,151 Oct.6 8,020 22,160 2,640 3,300 2,150 3,485 4,881 1,202 5,630 3,413 6,621 2,560 66,062 Oct.13 8,020 19,760 2,400 3,300 2,150 3,985 4,881 2,162 5,630 2,613 6,041 2,560 63,502 Oct. 20 22,360 2,400 3,300 2,650 3,485 4,881 5,270 2,613 5,760 2,560 63,959 Issued to Federal Reserve Bank, net — Sept. 29 10,337 78,414 7,606 9,121 12,536 19,040 3,325 13,781 17,062 23,730 10,106 213,967 Oct.6 11,297 75,601 7,967 9,082 13,979 20,266 3,320 11,452 14,762 17,571 25,104 10,089 220,490 Oct. 13..... 11,249 77,603 . 8,006 8,947 14,814 20,705 3,314 12,436 14,743 18,331 25,658 10,076 225,882 Oct. 20 , 11,208 79,692 7,827 8,849 15,264 21,627 3,179 13,924 15,079 18,296 25,800 10,058 230,803 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

NOVEMBER 1,1916. FEDERAL RESERVE BULLETIN. 653 /Statement of Federal Reserve Agents' accounts at close of business on Fridays, Sept. 29 to Oct. 20, 1916—Continued. [In thousands of dollars.] B to 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 - . At t l a a . n- Ch go ic . a- Lo S u t. is. M ap i o n l n is e . - K C a i n ty sa . s Dallas. F c S i r s a a c n n o - . sy T s f o o t t e r a m l . Amounts held by Federal Reserve Agent: In reduction of liability on outstanding notes- Gold coin and certificates on hand- Sept. 29 9,700 75,715 3,820 8,540 4,560 3,063 11,620 4,270 10,340 131,628 Oct. 6 10,700 71,215 3,820 8,540 4,560 5,063 11,620 4,270 10,340 130,128 Oct. 13.. 10,500 73,615 3,820 8,460 4,560 5,063 11,620 4,270 10,340 132,248 Oct. 20 10,500 76,015 3,820 8,300 4,560 5,065 11,980 4,270 10,340 134,850 Credit balances in gold redemption fund- Sept. 29 637 2,699 581 416 1,178 245 549 811 1,224 9,764 Oct. 6 597 4,386 527 542 359 1,135 240 532 792 1,061 1,398 349 11,918 Oct. 13.. 749 3,988 486 487 494 1,074 234 716 773 1,021 1,372 486 11,880 Oct. 20 708 3,677 447 549 444 996 229 702 749 1,334 11,289 Credit balances with Federal Reserve Board- Sept. 29 3,420 7,050 10,550 2,510 1,350 10,400 9,740 56,180 Oct. 6 3,620 9,100 11,550 3,080 2,510 2,350 10,600 9, 9,740 62,430 Oct. 13 3,700 9,500 12,050 3,080 3,310 2,350 11,500 10,880 9,590 65,960 Oct. 20 3,560 10,500 12,550 2,950 4,810 2,350 11,500 11,380 9,590 69,190 As security for outstanding notes— Commercial paper— Sept. 29. 5,070 2,752 2,787 1,700 4,086 16,395 Oct. 6 4,520 3,021 3,347 1,640 3,486 16,014 Oct. 13 4,820 3,021 3,347 1,540 3,066 15.794 Oct. 20 4,320 3,521 3,347 1,540 2,746 15,474 Total- Sept. 29 10,337 78,414 7,606 9,121 12,536 19,040 3,325 13,781 17,062 23,730 10,106 213,967 Oct. 6 11,297 75,601 7,967 9,082 13,979 20,266 3,320 11,452 14,762 17,571 25,104 10,089 220', 490 Oct. 13 11,249 77,603 8,006 8,947 14.814 20,705 3,314 12,436 14,743 18,331 25,658 10,076 225,882 Oct. 20 11,208 79,692 7,827 8,849 15,264 21,627 3,179 13,924 15,079 18,296 25,800 10,058 230,803 Memorandum: Total amount of commercial paper delivered to Federal Reserve Agent-— Sept. 29 5,157 2,762 2,788 1,889 4,448 17,054 Oct. 6 4,567 3,032 3,348 1,644 3,629 16,220 Oct. 13 4,979 3,023 3,348 1,641 3,305 16,296 Oct. 20 4,703 3,522 3,348 1,761 3,004 16,338 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

654 FEDERAL RESERVE BULLETIN. NOVEMBER 1,1916. GOLD IMPORTS AND EXPORTS. Imports of gold, by customs districts, Jan. 1 to Oct. 20, 1916. [In thousands of dollars.] Week ending Sept. 29. Ore and base bullion United States mint or assay office bars Bullion, refined United States coin .... Foreign coin Total Week ending Oct. 6. Ore and base bullion United States mint or assay office bars . " Bullion refined United States coin Foreign coin Total Week ending Oct. IS. Ore and base bullion United States mint or assay office bars Bullion, refined United States coin. Total Week ending Oct. 20. Ore and base bullion United States mint or assay office bars. Bullion, refined United States coin . Total Jan. 1 to Oct. 20. Ore and base bullion United States mint or assay office bars Bullion, refined United States coin Foreign coin .* Total weN dna eniaM .erihspmaH 1 20,000 1 20,002 .kroY weN 107 409 12 528 20 255 275 78 183 1 262 51 306 1 3^8 2,002 31,603 1,216 28,644 63,465 .adirolF " "*45 * 45 .snaelrO weN 9 9 291 5 9 305 .anozirA 3 4 7 10 1 11 6 4 .10 •10 10 441 152 593 .osaP lE 1 1 1 1 1 6 1 7 81 45 126 .oderaL s 8 182 182 .aksalA 4 191 9 204 2 142 4 148 19 135 154 3 407 410 103 2,436 16 2,555 .ocsicnarF naS 113 113 38 2,433 2,471 91 104 195 102 102 2,294 3,410 12,166 17,870 -ilaC nrehtuoS .ainrof 1 1 3 29 32 .notgnihsaW 28 110 138 22 86 108 36 119 155 37 111 148 2,432 2,015 56 4,503 .olaffuB 164 87 251 7 113 120 214 5 219 29 87 116 624 3,480 41,416 2,4i2 47,932 .atokaD 8 8 6 6 6 6 3 3 269 269 .nagihciM 92 92 48 48 20 20 78 78 1,739 1,739 .oihO 3 3 .ecnerwaL .tS 1 1 25,755 25,755 193,624 1,778 61,982 257,384 .latoT 356 164 801 9 12 1,342 156 7 598 4 2,433 3,198 256 214 551 1 1,022 298 29 26,668 1 26,966 10,465 3,480 294,730 3,116 105,214 417,005 Excess of gold imports over exports for 42 weeks, Jan. 1 to Oct. 20. 1916.. , 319,728 Excess of gold imports over exports for corresponding period, 1915 , 306,674 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

NOVEMBER 1,1916. FEDERAL RESERVE BULLETIN. 655 Exports of gold, by customs districts, Jan. 1 to Oct. 20, 1916. [In thousands of dollars.] Week ending Sept. 29. Ore and base bullion United States mint or assay office bars Bullion, refined: Domestic* United States poin Foreign coin Total Week ending Oct. 6. Ore and base bullion Bullion, refined: Domestic Foreign Total Week ending Oct. 13. Bullion refined domestic United States coin Foreign coin Total Week ending Oct. 20. Bullion, refined: Domestic Foreign United States coin Foreign coin Total Jan. 1 to Oct 20. Ore and base bullion United States mint or assayoffice bars Bullion, refined: Domestic Foreign United States coin Foreign coin Total . weN dna eniaM .erihspmaH 2 2 .kroY weN 293 342 635 2 2 8 110 118 171 171 954 5,110 1,438 31,372 18 143 57,017 .ociR otroP .snaelrO weN 15 100 15 100 .aksalA 12 1 13 .iiawaH 8 8 21 21 172 172 .ocsicnarF naS 1,750 1,750 268 59 327 10,306 701 22,782 193 33,982 -ilaC nrehtuoS .ainrof 50 50 .notgnihsaW 17 17 1 1 1,000 1,000 152 4 1,052 1,208 .olaffuB 17 3 3 23 31 3 34 12 12 10 13 70 213 390 3 21 29 726 .atokaD 9 9 7 7 3 3 4 71 75 -uS dna htuluD .roirep 1 2 3 1 1 1 4 5 2 8 14 6 30 .nagihciM 12 "*3* 15 dna anatnoM .ohadI 1 1 1 1 2 .ecnerwaL .tS 1 1 5 7 5 101 106 519 30 16 1,120 1,422 3,107 .tnomreV 1 1 13 750 763 .latoT 1 2 312 5 2,114 3 2,437 17 33 3 53 20 387 59 466 10 5 1,297 4 1,316 237 11,994 6,272 1,457 57,521 19,796 97,27V Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

656 FEDERAL RESERVE BULLETIN. NOVEMBER 1,19i6. EARNINGS ON INVESTMENTS OF FEDERAL RESERVE BANKS. Average amounts of earning assets held by each Federal Reserve Bank during September, 1916, earnings from each class of earning assets, and annual rate of earnings on the basis of September, 1916, returns. Average balances for the month, of the several classes of earning assets. Bills dis- Bills bought United One-year Municipal m co e u m n b te e d rs , . b S o ta n t d e s s . Tr n e o a t s e u s r . y- warrants. Total. Boston $631,070 $10,418, 969,467 $250.000 $4,056, $18,325,386 New York 888,764 26,370, 604,083 1,844)400 4,491, 199,167 Philadelphia... 181,647 11,623, 819,333 818.000 2,285, 728,745 Cleveland 597,913 7,284, 038,550 76O',OOO 2,780, 461,209 Richmond 5,832,849 1,533, 075,247 684,000 85, 210,965 Atlanta •3,866,810 2,243, 508,000 526,000 225, 369,847 Chicago 2,965,892 5,503, 472,167 850,000 4,025, 817,089 St. Louis 1,313,431 5,496, 851,333 570,000 1,508, 739,897 Minneapolis 1,872,200 3,207, 369,400 350,000 1,041, 841,100 Kansas City... 1,729,217 1,369, 617,350 616,000 378, 711,196 Dallas " 7,039,542 545, 853,750 529,000 968,282 San Francisco.. 400,984 7,208, 933,750 500,000 2,094,521 137,549 Total* 27,320,319 82,807,235 47,112,4 8,297,400 22,973,048 188,510,432 Earnings from— Calculated annual rates of earnings from— B co m i b l u l e e s n r m t s d e . - i d s , - m i b n o B a u o r il k g p l e s e h t n t . U b S o n ta n i t t d e e s s d . T O r n n e o e a t - s e y u s e . r a y r p M a ra l u n n w t i s c a . i r - - Total. B co m i b l u l e e n s r m t s d e . - i d s , - i m b n o B a u r o il k g p l e s h e t t n . U b S o n ta n i t t d e e s s d . T O r n n e o e a t - s e y u s e . r a y r p M a ra l u n n w t i s c a . h r- Total. Per cent. Per cent. Per cent. Per cent. Per cent. Per cent. Boston $1,956 $20,437 $4,942 $625 $9,458 $37,418 3.78 2.39 2.03 3.05 2.84 2.49 New York 2,911 54,047 5,501 4,611 11,138 78,208 3.99 2.50 2.58 3.00 3.03 2.66 Philadelphia 592 23,092 4,933 2,000 5,490 36,107 3.98 2.42 2.13 2.98 2.93 2.48 Cleveland 2,051 13', 914 12,703 8 1,900 7,052 37,620 4.19 2.33 2.57 3.05 3.10 2.63 Richmond 19,900 3,733 223? 1,682 237 27,585 4.16 2.97 2.31 3.00 3.40 3.65 Atlanta 13,032 4,695 1,286 666 22,575 4.11 2.55 2.34 2.98 3.60 3.29 Chicago 11,181 10,424 16,965 2,125 9,439 50,134 4.60 2.31 2.44 3.05 2.86 2.80 St. Louis 4,476 10,730 4,806 1,394 3,823 25,229 4.16 2.38 2.05 2.98 3.09 2.62 Minneapolis 7,407 6,095 6,030 875 2,484 22,891 4.64 2.32 2.18 3.05 2.91 2.80 Kansas City •6,657 2,791 16,553 1,507 841 28,349 4.70 2.49 2.10 3.00 2.70 2.52 Dallas '. 27,311 2,485 5,107 1,294 36,197 4.73 15.50 2.50 3.00 4.02 San Francisco 1,706 14,486 5,115 1,250 4,975 27,532 5.19 2.45 2.10 3.00 2.81 2.56 Total 99,180 166,929 87,584 20,549 55,603 429,845 4.43 2.46 2.27 3.02 2.95 2.78 1 Large line of acceptances retired before maturity at rebate rate of 1 per cent less than rate at which discounted. DISCOUNT RATES. Discount rates of each Federal Reserve Bank in effect Oct. 25, 1916. a M 1 t n 0 i a d e d t s l u a e o r y s f i s s - . a M 1 t n 5 i a d e d s t l u a e o r y s f i s s - . M d c o t l a t v i u o a e y e s t s s r 3 i u , v o 0 1 r i e f i n 0 - . - c M d o t l a t i v u o a e y e s s t s r 3 i u , v o 0 1 r i e f i n 5 . - M c d o t l a t i v u a o e y e s t s s r 6 u i , v o 0 3 r i e f i 0 n - . - M c d o t l a t i v u a o e y e s t s s r u i 9 , v o 0 6 r i e f i n 0 - . - A a o n p s d t g v d u t a a r e o p r i y r l c c a e i s k v 9 u l r . 0 e l- - c d l T a u y o s s i T 3 , v 0 r i e n a . - de c d l a T a u c y o s c s i e 6 , v p 0 i e n t . a - n c d O c l e a t u v o s y s e . s i r 9 , v 0 i 6 e n 0 . - 9 m 0 C o o d d m a i y t - y s. M b c lo o a e e a n l r m l a n k a l b s t s . - e , r Boston 31 |. t New York Philadelphia Cleveland i Richmond 31 i Atlanta 3 | Atlanta (New Orleans 34 branch) , 2 3f-4 Chicago , 9 1 St. Louis 3" Minneapolis , 31 j- 4 Kansas City 4. Dallas 3-5 San Francisco 41 1 Rate for bills of exchange in open-market operations. 2 Rate for trade acceptances bought in open market without member bank indorsement. 3 Rate for commodity paper maturing within 30 days, 3£ per cent; over 30 to 60 days, 4 per cent; over 60 to 90 days, 4J per cent; over 90 days, 0 percent. NOTE,—Rate for bankers' acceptances, 2 to 4 per cent. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

INTERDISTRICT MOVEMENT OF FEDERAL RESERVE NOTES, JAN. 1 TO SEPT. 30,191S. 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 $2,156,000 $896,600 $131,000 $95,380 $110,000 $9,385 $144,000 $11,270 $80,000 116,135 N Ph ew ila Y de o l r p k hia... 9 9 5 5 ; , 3 9 8 5 0 0 12,1 1 2 3 7 1 , , 0 0 0 0 0 0 2,261,000 1,178,000 1,187,980 2,245,000 7 1 2 7 0 1 , , 8 2 6 8 0 0 2 3 2 1 3 , , 1 2 2 1 0 0 2,7 4 5 0 7 9 , , 4 7 2 1 0 5 2 5 4 4 7 , , 1 2 1 9 5 0 2,1 1 9 4 6 6 , , 8 6 3 2 0 0 2 2 7 1 2 , , 7 3 6 9 0 0 Cleveland 9,385 110,000 216,710 711,100 31,120 171,280 40,170 29,870 18,705 39,530 Richmond 11,270 144,000 247,290 2,731,450 54,115 422,190 29,870 41,840 130,060 306,620 Atlanta , 16,135 80,000 272,390 2,171,410 21,760 146, 620 39,530 18,705 306,620 130,060 Chicago 69,500 14,000 1,225,500 110,350 94,000 12,970 437,000 12,290 263,000 2,600 476,000 7,685 St. Louis 8,150 19,000 162,420 296,800 12,305 20,175 57,635 10, 710 41,940 5,900 317,840 47,100 Minneapolis 7,440 47,500 113,155 518,200 7,140 37,690 26,435 23,030 15,200 6,050 18,940 17,715 Kansas City.... 1,785 34,000 20,000 529,100 1,550 32,910 6,240 18,220 5,610 6,630 12,000 38,505 Dallas 3,235 52,000 52,395 940,850 3,535 54,280 9,535 18,560 14,025 14,580 214,460 611,340 San Francisco. 13,300 35,000 102,665 870,100 4,710 26,480 15,125 8,400 16,030 3,100 19,430 11,295 Total.. 1,131,530 2,793,500 6,829,525 10,953,960 1,549,215 3,264,975 1,623,510 415,470 4,013,730 511,465 3,630,885 1,390,075 fed Chicago. St. Louis. Minneapolis. Kansas City. Dallas. San Francisco. Total. Received Returned Received Returned ReceivedReturned Received ReturnedReceivedReturned ReceivedReturned Received Returned from. to. from. to. from. to. from. to. from. to. from. to. from. to. B GO Boston 814,000 169,500 $19,000 $8,150 $47,500 $7,440 $33,000 $1,685 $50,000 $3,020 $33,000 $13,300 $2,817,500 $1,131,885 New York. 113,610 1,225,500 301,690 162,420 518,200 113,155 539,550 19,000 959,800 50,395 877,940 102,665 11,069,830 6,788,025 Philadelphia... 12,970 94,000 20,175 12,305 37,690 7,140 31,910 1,550 54,280 3,365 26,480 •5; 160 3,287.500 1,539,515 Cleveland 12,290 437,000 9,510 57,635 23,030 26,435 18,220 6,240 18,560 9,145 8,400 15,125 406,100 1,613,360 Richmond 2,600 263,000 5,900 47,290 6,050 15,200 6,630 5,610 14,580 12,715 3,100 16,030 511,465 4,005,945 Atlanta 7,685 476,000 47,100 317,840 17,715 18,940 38,505 12,000 568,955 188,960 11,295 19,430 1,347,690 3,579,965 r Chicago 414,500 41,250 1,667,500 42.880 ,143,500 2,895 741,500 3,970 287,500 6,410 6,819,500 257,300 St. Louis 41,250 414,500 100,170 18,290 918,005 34,500 854,315 64,565 23,725 8,770 2,537,755 940,310 Minneapolis 42.880 1,667,500 18,290 100,170 82,030 23,825 40,065 15,265 117,500 45,380 489,075 2,502,325 Kansas City.... 2; 895 1,143,500 34,500 918,005 23,825 85,530 76,080 133,135 17,500 38,735 201,985 2,978,270 Dallas *..... 3,970 741,500 66,555 854,315 15,265 •40,065 138.135 76,000 7,575 42,010 523,685 3,445,500 San Francisco. 6,410 299,500 8,770 24.925 45,380 117,500 38,735 17,500 43,010 9,720 313,565 1,423,520 Total.... 280,560 6,831,500 945,990 2,544,305 2,502,325 492,575 2,988,220 200,805 3,421,145 494,255 1,414,015 313,015 30,310,650 30,205,900 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

658 FEDERAL RESERVE BULLETIN. NOVEMBER 1,1916. COMPARATIVE STATEMENT OF LEADING In the case of the Bank of England state- BANKS OF ISSUE, 1914 AND 1916. ment, the distinction between the issue and banking departments was disregarded. Ac- There are presented below comparative cordingly, "bank notes in circulation'7 on the statements showing the condition of the Fed-liability side represents the difference between eral Reserve Banks treated as a unit, and of the the amount of notes reported as "issued" by leading central banks of issue in 1914 andthe issue department and the amount of notes in September-October, 1916. The original fig-reported among the assets of the banking deures were largely taken from the official bank partment. Similarly, "gold coin and bullion" statements, and conversions into dollars were reported by the issue department was combined made at the mint rates, with no allowance for with "gold and silver coin" reported by the existing gold premiums. banking department; "other securities" shown The figures for the Federal Reserve Banks among the assets of the issue department was have been modified by the inclusion among the combined with "Government securities" reassets of all the gold held by the Federal Re- ported by the banking department; and "other serve Agents and by the inclusion among the securities" shown by the banking department liabilities of all the Federal Reserve notes issued was shown separately under the designation of by the agents less notes held by the reserve ''loans and discounts.'' The statements of the banks. In other words, it was assumed that Continental banks are more uniform and require the Federal Reserve Banks were issuing.notes no special comment. without the intermediation of the Federal Re- The principal assets and liabilities of the Fedserve Agents, and that the banks, and not the eral Reserve Banks and of the leading European agents, were in possession of the gold serving central banks of issue are grouped under heads as cover for the notes issued. commonly used in our own bank reports. Comparative statement showing principal assets and liabilities of the leading central banks of issue, at dates specified. [In thousands of dollars.] Fede s r y al s te R m e . serve Bank of England. Bank of France. Dec. 31, Oct. 20, July 29, Oct. 4, July 30, Oct. 7, 1914. 1916. 1914. 1916. 1914. 1916. Assets. Gold coin and bullion 24 1 1 7 , , 3 8 2 2 1 3 59 2 9 , , 8 6 4 13 5 185,567 265,859 / \ 1 7 2 9 0 9, , 2 6 7 8 9 9 80 6 4 4 , ,6 0 7 1 5 6 Silver and other metallic reserve Total metallic reserve 259,144 602,458 185,567 265,859 919,968 868,691 Gold held abroad 130,190 Foreign credits 160,153 Government securities: Bonds, consols, etc 205 41,335 41,019 40,862 Short-term obligations 11,697 143,343 295,095 963 291,438 Other Government obligations *8,"755* 7,716 38,600 1,698,400 Total 8,960 60,748 143,343 295,095 80,582 2,030,700 Notes of other banks of issue 4,624 1,363 Loans and discounts 9,909 104,057 230,222 53i*264 471,746 365,814 Advances on bullion and specie, securities, merchandise, etc. 146,443 228,868 Securities 734 32,543 Sundry assets 9,237 32,291 77,173 84,638 Total. 292,608 833,460 559,132 1,092,218 1,695,912 3,869,054 Liabilities. Capital paid in 18,051 55,682 70,822 70,822 35,222 35,222 Surplus 16,992 15,373 8,206 8,292 Government deposits 26,116 61,869 254,204 73,834 11,408 Other deposits 263,948 538,102 264,830 571,337 182,881 434,668 Bank notes in circulation. 10,609 213,076 144,566 180,373 1,289,855 3,283,151 Sundry liabilities 53 109 105,914 96,313 Total. 292,608 833,460 559,132 1,092,218 1,695,912 3,869,054 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

NOVEMBER 1,1916. FEDERAL RESERVE BULLETIN. 859 Comparative statement showing principal assets and liabilities of the leading central banks of issue, at dates specified—Con. [In thousands of dollars.] Russian State Bank. * Bank of Italy. German Reichsbank. July 16/29, Sept. 8/21, Dec. 31, Aug. 20, Julv 31, Sept. 7, 1914. 1916. 1914. 1916. 1914. 1916. Assets. f G ^i o lv ld ^ r c o a i n n d a o n f. d h p b .r u m lli f o it n allin rpsp.rv*1- 8 5 2 7 5 , , 4 8 8 8 7 4 8 4 0 9 0 , , 1 19 3 0 5 • 236,633 / \ 1 1 8 6 3 , , 4 9 1 7 7 3 2 6 9 5 8 , , 4 2 0 6 9 1 58 5 7 , , 6 7 6 88 0 Total metallic reserve 863,371 8-49,325 236,633 200,390 363,670 593,448 O Fo o r l e d i g h n e l c d r e a d b i r t o s ad . . ... [ 72,471 1,058,298 1 8,195 50,782 •Government securities: Short-term obligations 2,398,418 105,865 342,513 7,960 88,982 Other Government obligations Total 2,398,418 105,865 a 342,513 7,960 88,982 Notes of other banks of issue *>5,416 c5,934 2,740 4,162 Loans and discounts.. 220,932 143,697 180,297 180,900 495,296 1,669,753 Advances on bullion and specie, securities, merchandise, etc 179,273 282,020 29,180 36,277 48,121 2,509 Securities 53,075 65,195 39,486 42,783 94,392 22,148 Sundry assets 109,931 398,691 28,618 27,025 51,902 117,977 Total ..• 1,499,053 5,195,644 633,690 886,604 1,064,081 2,528,979 Liabilities. Capital 28,325 28,325 34,740 34,740 42,840 42,840 Surplus 13,515 14,576 17,726 20,342 O G t o h v e e r r n d m ep e o n s t it d s eposits 3 2 2 6 7 4 , ,9 5 3 8 7 5 1 9 3 4 7 8 , , 9 5 9 0 7 4 1 4 1 0 8 , , 3 0 2 3 0 5 14 5 8 , , 8 6 4 90 9 > 299,515 684,939 Bank notes in circulation 841,174 3,720,219 417,352 652,303 692,442 1,707,754 Sundry liabilities 37,032 360,599 9,728 30,446 11,558 73,104 Total l 1,499,503 5,195,644 633,690 886,604 1,064,081 2,528,979 Bank of the Nether- Riksbank, Sweden. Norges Bank, Norway. lands. July 25, Sept. 30, July 31, Sept. 30, July 31, Sept. 30, -1914. 1916. 1914. 1916. 1914. 1916. Assets. S G i o lv ld e r c a o n in d a o n t d h e b r u m ll e io ta n llic reserve $6 3 5 , , 3 1 0 70 7 $23 2 6 , , 6 11 5 9 2 $2 1 4 , , 4 74 0 6 8 \ $40,685 $14,405 $30,532 Total metallic reserve 68>477 238,771 26,154 40,685 14,405 Foreign credits 13,564 10,982 8,166 d 27,355 Government securities: Bonds, consols, etc Short-term obligations 5,003 634 7,332 16,083 2,399 3,733 Other Government obligations Total 5,003 634 «7,332 /16,083 2,399 0 3,733 Notes of other banks of issue ft 1,893 Loans and discounts 35,430 45,745 42,303 41,323 23,690 Advances on bullion and specie, securities, merchandise, etc 24,798 24,386 3,815 Securities 3,612 3,666 1,404 Sundry assets 928 24,080 813 Total . . .. 138,248 337,282 92,059 Liabilities. Capital 8,040 8,040 11,900 11,900 Surplus 2,011 2,072 2,975 2,975 O G t o h v e e r r n d m ep e o n s t i t d s eposits 1,904 42,596 18,440 } 17,726 3,859 20,439 Bank notes in circulation 124,796 281,715 54,367 386,885 32,859 61,615 Sundry liabilities 1,497 2,859 4,377 Total 138,248 337,282 92,059 a Includes $4,003,000 of foreign treasury bills. «Includes both Government and corporation securities. 6 Includes $1,737,000 of foreign bank notes, / Includes foreign Government securities. c Includes $1,641,000 of foreign bank notes. g Includes foreign Government securities. d Includes foreign bills of exchange. h Includes foreign bank notes, also drafts and bills payable on demand. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

660 FEBERAL RESERVE BULLETIN. NOVEMBER 1.1916. Comparative statement showing 'principal assets and liabilities of the leading central banks of issue, at dates specified—Con, [In thousands of dollars] Na h ti a o g n e a n l , B D a e n n k m , C ar o k p . en- Bank of Spain. Swiss National Bank. Bank of Japan. July 31, Sept. 30, July 24, Sept. 30, July 23, Sept. 15, Dec. 31, Sept. 23, 1914. 1916. 1914. 1916. 1914. 1916. 1913. 1916. Assets. Gold coin and bullion / $41,713 $105,798 $228,429 134,753 £55,936 $111,734 Silver and other metallic reserve \ <?24,410 I 1,086 143,063 146,934 3,656 10,973 562 }• $152,685 Total metallic reserve 24,410 42, 799 248,861 375,363 38,409 66,909 112,296 152,685 Foreign credits 13,805 75, 693 Government securities: B S O h o th o n e r d t r s t , G e c r o o m v n e s o r o n b ls m l , i g e e a n t t c t i o o n b . s li . gations I a 6 2 , , 9 3 5 8 8 3 < f 6 2 7 9 , , 0 1 4 9 7 9 6 29 7 , , 1 0 9 4 9 7 j 1 .l 1 SRfi J 1 2 1 7 0 , , 6 9 5 5 4 6 1 1 1 8 , , 2 3 8 0 4 8 Total 9 341 96,246 96,246 1,586 38,610 29,592 Notes of other banks of issue 27,098 t> 19 Loans and discounts 2,307 33,121 152,579 140,116 18,099 34,704 Advances on bullion.and species, securities, I 28,126 39,122 merchandise, etc 3,106 5,370 2,699 3,370 Securities 1,666 2,446 1,445 1,362 Sundry assets 9,627 2,049 5,594 11,883 69,636 187,294 Total. . 66,548 108,170 67,247 119, 897 324,361 410,055 Liabilities. Capital paid in 7,236 7,236 4,825 4,825 18,675 18,675 Surplus 2,199 2,675 289 471 13,585 18,490 G Ot o h v e e r r n d m ep e o n s t i t d s epo . sits... } 5,496 / \ c24 9 ,3 1 1 8 2 1 96,931 149,903 9,777 28,819 \ f 5 2 8 , , 4 8 7 9 0 7 1 1 3 9 4 , , 1 6 6 4 2 7 Bank notes in circulation 39,525 71,928 373,557 439,781 51, 708 83,176 212,342 202,307 Sundry liabilities. . 12,092 1,101 648 2,606 18,392 16,774 Total. 66, 548 108,170. 67,247 67,247 324 361 41n nan a Foreign Government securities. b Swedish and Norwegian bank notes. c Includes $1,569,000 due to foreign central banks. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

INDEX. Page. Page. Acceptance business, growth of 590 Federal Reserve notes: Acceptances, distribution of, by sizes, maturities, Circulation of 652 etc . 644-647 Interdistrict movement of 657 Assests and liabilities of leading central banks of Fiduciary powers granted 601 issue 658-660 Gold imports and exports 654, 655 Business conditions: Gold settlement fund 603-605 District No. 1.. *. 613 Growth of acceptance business 590 No. 2 615 Informal rulings of the Board: No. 3...... 616 Loans on farm lands 606 No. 4. 617 Reserves of member banks now carried with No. 5 619 Federal Reserve Bank 606 No. 6 621 Clayton Act interpretations 608 No. 7 624 Real estate loans, limitations 606 No. 8 627 Class A and B directors, eligibility of 607 No. 9... 628 Insurance for Federal Reserve Bank employees 590 .No. 10..' 629 Law department: No. 11 633 Presentment of bills for acceptance 608 No. 12..' 636 Loans on city real estate 608 Summary of. -. 612 Real estate loans by central reserve city na- Clayton Act: tional banks 609 Applications under Kern amendment, number Promissory notes of member banks, security on. 609 of, granted and refused 602 Indorsement of negotiable paper on separate Interpretation of '' private banker " 588 piece of paper 610 Clearing plan, operation of 598 Savings accounts as time deposits. 611 Commercial failures in September 601 Map showing Federal Reserve districts 596 Directors of Federal Reserve Banks, memorandum Mortgage loans, renewal of 602 of Board relative to election of 597 National bank charters granted - 600 Discount rates in effect 656 '"Private banker," interpretation of, as used in Discounts, distribution of 639-644 Clayton Act 588 Earnings and expenses of Federal Reserve Banks Real estate loans, one year limit on 602 for nine months 593-595 Reserves, date for payment of 597, 598 Earnings on investments of Federal Reserve Resources and liabilities of Federal Reserve Banks. 650 Banks . 656 Statement showing assets and liabilities of leading European payments to the United States since be- central banks of issue .' 658-660 ginning of war 592 United States bonds, conversion of 2 per cent, dur- Federal Reserve Agents' accounts, statement of 652 ing 1916 647-649 Federal Reserve Bank statements 650-653 Wisconsin banks transferred from District No. 9 to Federal Reserve districts, changes in, Districts Nos. District No. 7 596 7 and 9 596 Work of the Board. 587 661 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis