Federal Reserve Bulletin, 1917-01

FEDERAL RESERVE BULLETIN ISSUED BY THE FEDERAL RESERVE BOARD AT WASHINGTON JANUARY, 1917 WASHINGTON GOVERNMENT PRINTING OFFICE 1917 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FEDERAL RESERVE BOARD. EX OPPICIO MEMBERS. W. P. G. HARDING, Governor. PAUL M. WARBURG, Vice Governor. WILLIAM G. MCADOO, FREDERIC A. DELANO. Secretary of the Treasury, ADOLPH C. 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. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

TABLE OF CONTENTS. Page. Review of the month 1 Dividends declared by Federal Reserve Banks 4 Purchase of United States bonds 5 Bank of England as foreign agent of Federal Reserve System 5 Growth of use of bankers' acceptances 5 Operation of clearing plan 6 Meeting of governors of Federal Reserve Banks '7 Class C directors appointed 7 Class A and B directors elected 7 Increased use of trade acceptances •. 8 War loans of foreign countries 10 One hundred largest national banks 19 Commercial failures during November 19 Fiduciary powers granted. 20 New national-bank charters granted 20 Collaboration between the Federal Trade Commission and the Federal Reserve Board 21 Assessment for expenses of the Federal Reserve Board 23 Gold settlement fund 25 Informal rulings of the Federal Reserve Board 28 Law department 31 Business conditions throughout the 12 Federal Reserve districts 33 Charts: Commercial paper, acceptances, and other investments held 57 Reserves and net deposits of Federal Reserve Banks 57 Distribution of discounted paper 57 Acceptances, distribution of 63 Federal Reserve Bank statements 67 Gold imports and exports 71 Earnings on investments of Federal Reserve Banks 73 Disc6unt rates in effect 74 IV Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

VOL. 3 JANUARY 1, 1917. No. 1 REVIEW OF THE MONTH. As a moans of providing the control of the gold referred to in this statement, the Board sug- The work chiefly receiving the attention of gested the advancing of the date on which the Federal Reserve Board during the month balances with city banks should cease to count of December has been the preparation of its as reserves, from November 1, 1917, to Febannual report to Congress, and, in this conruary or March of the same year. This was nection, the discussion and formulation of recommended mainly because it would elimiamendments to the terms of the law which nate fictitious reserve balances, and tend to it is prepared to recommend. Those amendpromote a better understanding of real reserve ments have been transmitted to the chairconditions. men of the Banking and Currency Commit- A more positive program has, however, tees of the Senate and House in advance of been felt to be necessary, and other amendthe Board's complete report, because of the ments have in consequence been suggested by limited time available for discussion at the the Board to Congress. short session of Congress. The considerations Among the amendments thus transmitted which have led the Board to present these to the appropriate committees amendments will be set forth in the annual Proposed ,. ^ ,-. report shortly to bo transmitted. amendments. O± Congress "« the fol e lo 11 wing items: The whole situation as to reserves, interest (1) An amendment designed to advance the rates, and demands for accommodation has date when reserve balances carried with city been such as to confirm the Board in the correspondents will no longer count as reserves, belief, previously expressed, that the time has from November 1, 1917, to a date 60 days after come for the use not only of distinct caution the passage of the amendatory act. on the part of our banks, but also of the (2) A provision authorizing the Federal Readoption of a more adequate policy to control ; serve Board to increase member bank reserves the dangers growing out of the continued ship- | under carefully guarded conditions. ment of gold to the United States. In the | (3) A revision of section 19 of the act restatement issued on November 28 the Board | lating to reserves so far as to eliminate matter used the following language : which has become obsolete by reason of the "The Board does not share the view, freactual effecting of reserve transfers, while at the quently- expressed of late, that further importasame time reserves carried with Federal Reserve tions of large amounts of gold must of necessity prove a source of danger or disturbance to this Banks are strengthened, and the amount and country. That, danger, the Board believes, character of funds to be carried in vault are will arise only in case the inflowing gold should placed within the option of the member banks. remain uncontrolled and. be permitted to be- (4) An amendment authorizing State banks come the basis of undesirable loan expansions to carry balances with Federal Reserve Banks and of inflation. There are means, however, and to clear checks through them. of controlling accessions of gold by proper and voluntary cooperation of the banks or, if (5) Sundry minor amendments intended to need be, by legislative enactment." correct obvious defects or errors in existing law, Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FEDERAL RESERVE BULLETIN. JA.\-I7AHY 1, 1917. or to improve the working of various phases of was, however manifest—a misunderstanding the legislation. to which Governor Harding made reference in It will bo observed (hat the principal of the an address at Boston on December 14, in the Board's proposed amendments following language: Controlling are intendcd t WQrk toget]ier '' Some of you may perhaps have seen a statethe gold supply. toward the further application ment that was recently given to the press by of the policy already mapped out in the state- the Federal .Reserve Board, in which the sugment regarding bank investments in foreign obli- festion was made that in view of abnormal conitions throughout the world, it would be best gations issued by it on November 28. As noted that the banks of this country should keep above, it was there suggested that the inflow themselves in a liquid condition and proceed of gold into the "United States i\.?cd not be con- along 'indicated lines of prudence and consersidered a menace to tho well-being of the com- vatism. 'The suggestion was made also that munity, provided that satisfactory provision as the United States is fast becoming the banker of foreign countries in all parts of the world, was made for the control of its movement and investors should receive full and authoritative accumulation. The question raised is how to data, particularly in the case of unsecured obtain and exercise sufficient authority in con- loans. nection with such control. This, as is now I know that there has been criticism of the suggested by iho Board, can be accomplished Board's action in making this statement, by wiping out the fictitious reserves carried in which has been given a signiii.cance neither justified nor'intended. In its reference to inthe form of reserve balances, vesting the Board vestors, it was not the purpose of the Board to itself with power to increase when necessary make an attack, either open or covert, upon the percentage of member bank reserves car- the credit of any Government, nor did it seek ried with reserve banks, and rearranging the in its statement to reflect upon any particular reserve requirements of the country so as to obligations, In my opinion, what the Board had in mind wb.en it made its brief reference to place all reserve funds, except needed till inventors, was simply this: American investors ironoy, in the handy of the reserve banks have for many years been accustomed to buying themselves. The gold movement has con- industrial secnriti.es--railroad obligations to a tinued and imports into the United States dur- great extent. In dealing with- these securities ing the four weeks between Novoirber I7 and cortam well-established rules have been developed. The investor has acquired the habit of December 22, were 8109,655,000, while exports requi for the same period were $36,202,000. Net earning imports of gold for tho five "weeks ending De- funds cember 22 were $97,797,000, while net gold nitely whether he is offered a first mortgage imports sinco January 1, 1916, were 8483,- bond, income bond, preferred stock, or common stock. It Is the practice of every Issuing 801,000, compared with $409,050,000 for the house when offering securities to state all neccorresponding period in. 193 5. essary details either over its own signature or During the past month there have been fur- that of the head of the borrowing corporation. ; ther developments in connection Nowhere is the importance of authentic and Short i?n?v in- with the question of bank invest- complete information more fully understood vestments. and appreciated than in Europe, both in Engments in foreign obligations of land and on the Continent, and prospectuses technically short terms. Subsequent to the for foreign loans contain all the important facts statement issued by the Board on November 28 relating thereto, in a statement signed by an and published in the last issue of the Federal authorized representative of the foreign government or by the issuing house, or in some Reserve Bulletin, short term securities which cases by both. The Board sought merely to were about to be offered were withdrawn. call attention to the fact that as this country Some misunderstanding of the exact scope and has become an important market for foreign application of the statement of November 28 securities, the same businesslike habits which Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

JANUARY 1, 1917 FEDERAL RESERVE BULLETIN. are well established regarding domestic loans, Operations during the past month have should be developed in the marketing of foreign been decidedly more active flotations." Operations of , 7 -, . ,-% • v reserve banks. tlian dunn8 tlie P^cedmg Among other results the Board's statement month, while at some of the above referred to has had the banks there has been a sharp increase in the Reserve con- ^ effoct f }eadi bankg to ditions. . ° , demand for rediscounts. This was witnessed give greater attention to tne at New York, where about $9,000,000 in rereserve situation. Figures were given in the discounts and open-market purchases is last issue of the Federal Reserve Bulletin to shown for a single day (December 7), and at show the condition of member bank reserves Boston, whore a comparable increase in activity in large cities on November 18, and develop- occurred. The banks showing the largest inments since that time have not been such crease in their bill holdings for the month were as to indicate much change. According to as follows: the latest data now available, the reserve Nov. 24. Dec. 22. Increase. percentage of the 60 member banks forming the New York Clearing House Association New York... 835,268,000 845,855,000 910,687,000 figured against net demand deposits de- C Ph le il v a e d l e a l n p d h . ia .. 1 7 4 , , 1 40 3 3 8 , , 0 0 0 0 0 0 1 1 9 0 , , 9 7 0 4 0 5 , , 0 0 0 0 0 0 5 3, ,4 6 9 0 7 7 , , 0 0 0 00 0 Minneapolis. 4,387,000 7,991,000 3,604,000 clined from 19.5 on November 25 to 18.9 on Richmond... 3,658,000 6,306,000 2,648,000 December 2, and rose to 20.5 on December 16, C K h a i n c s a a g s o Cit5r. 1 2 0 , ,0 5 0 8 6 2 , , 0 0 0 0 0 0 1 4 2 , , 5 4 5 3 4 4 , ,0 C 0 O 0 O 2 1 , , 4 9 2 7 8 2 , , 0 0 0 0 0 0 at which figure it .stood on December 23. This included returns from 31 banks which So far as the general money market was conare members of the Federal Reserve System cerned, the event of most interest was the and from 29 nonmembers. Reports of the movement of the call-loan market in New York, New York State Banking Department indi- occurring on December 4, which at one time cate a decline of the reserve percentage for sent call-money rates as high as 15 per cent. It the State banks from 26.2 for tho week ending was practically simultaneous with this disturb- November 18 to 25.2 for the week ending De- ance that the increase in rediscounting at the cember 23, while the reserve percentage for Federal Reserve Bank of New York became most the trust companies is shown to have de- marked. A number of its members initiated clined during the same period from 22.6 to rediscount operations in order to prepare them- 20.8. The average excess reserves of the selves for sudden demands, which it was thought might be brought to bear upon them. There Philadelphia national banks, members of the was nothing to indicate that the increase in local Clearing House Association, declined rediscounting thus noted took place for the from over 26 millions for the week ending Nopurpose of providing call money, but rather vember 18 to about 16 millions for the week as an incident of the general situation, of ending December 23, while the average reserves which the rise of call-money rates afforded one of the Philadelphia trust companies belonging index. The control by Federal Reserve Banks to the association declined during the same of a situation of the kind which developed during period from nearly 6 millions to a little over 1 the month will, of course, ordinarily be found million. in their regulation of the discount rate, and ac- Reserves of the Boston banks for the week cordingly there has been a tendency to slightly ending December 23 were likewise lower than stiffen rates of accommodation in view of the about a month ago, though the decline was change of condition referred to. The Federal much smaller than in the case of the Phila- Reserve Bank of New York has advanced its delphia banks. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FEDERAL RESERVE BULLETIN. JANUARY 1, 1817. acceptance rate from 2f to 2|- per cent for 60- conversion of 2 per cent bonds should be genday bills and to 3 per cent for 9G-day bills as erally made in the form of 3 per cent 30-year of December 11, while the Federal Reserve bonds, the present plan of issuing half of the Bank of Boston raised its rate for maturities converted securities in 30-year 3s and half in not exceeding 10 days to 3J per cent, for ma- one-year notes to be abandoned. turities of over 10 to 30 days, inclusive, to The Board has had under consideration for 4 per cent, and the rate on member banks' Foreign Agen- some time the advisability of collateral notes maturing within 15 days to 4 cies. authorizing the Federal Reper cent. Changes in the Boston rates became serve Banks to establish one or more correeffective December 7. St. Louis has increased spondents or agencies in Europe, and under its rates for 15-day and commodity 90-day date of December 20, 1916, passed a resolupaper to 3J per cent. tion approving the application of the Federal Two conferences have been held by the Fed- Reserve Bank of New York for authority to eral Reserve Board during the establish an agency with the Bank of England. Conferences at • , .-, .,, , A statement touching this matter which was Washington P month with representagiven to the press on December 25 will be tives of the several Federal found on another page of this issue. Reserve Banks. On December 4 the Federal Reserve Agents assembled in Washington for a meeting which lasted until the 7th, while on December 11 the governors of Federal Reserve Dividends Declared by Federal Reserve Banks. Banks began sessions which extended through the 13th. At both conferences conditions Six Federal Reserve Banks had declared divirelating to the management and operation of dends prior to December of the present year, the Federal Reserve System as a whole were while the remaining six banks were authorized carefully reviewed, and suggestions were made to pay a 6 per cent dividend during December, by the Board with reference to changes and 1916, for some part of the period since the improvements in existing practice. The whole opening of the banks in November, 1914. The subject of commercial paper and the use of details regarding dividends thus far declared trade and bankers7 acceptances, was given par- are as follows: ticular attention at these conferences, while existing reserve conditions and the best method Date of of improving them was likewise discussed. au b t y h o F r e i d za e t r i a o l n A di m vi o d u e n n t d o . f Period for which authorized. The Board further explained both to the Fed- Reserve Board. eral Reserve Agents and to the governors of the Boston Dec. 21,1916 8246,891 Nov., 1914, to Dec. 31,1915. banks its ideas with reference to pending pro- New York.... Dec. 16,1916 131,150 Nov., 1914, to Mar. 31,1915. Philadelphia.. Dec. 23,1916 128,340 Nov., 1914, to June 30,1915. posals to amend the Federal Reserve Act, and Cleveland Nov. 27,1916 143,816 Do (lDec. ,1915 2 151,940 •Nov., 1914, to Dec. 31,1915. received suggestions regarding the application Richmond ,1916 3 30,388 | Dec. ,1916 167,535 Jan., 1916, to Oct. 31,1916. of these amendments to conditions in the sev- Atlanta J1 June ,1916 129,198 Nov., 1914, to Dec. 31,1915. \ Dec. ,1916 72,759 Jan., 1916, to June 30,1916. eral reserve districts. Clearing and collection Chicago \ f iJ D un ec e . , , 1 1 9 91 1 6 6 2 7 8 6 6 , , 1 5 5 7 6 5 N A o p v r. . , , 1 1 9 9 1 1 5 4 , , t t o o D M e a c r . . 3 3 1 1 , , 1 1 9 9 1 1 5 5 . . problems were considered, and it was agreed St. Louis iDec. ,1916 4 31,000 Nov., 1914, to Mar. 31,1915.- Minneapolis.. Dec. 16,1916 460,000 Nov., 1914, to July 1, 1915. w m to i o t i h n s s th m u s e o ' n a p t n h e e l r y w io s d c u . o p r p r R e le c e m t f e u e d n n d t p s i a n r t g h l e is r o t e f a o f n t G e r J o a v f n o e u r r n a a m ry s e 1 i n x , t S D K a a a n l n la F sa s r s a n C c i is ty co .. f \ / \ i l D S J J S a u e e e n l p p c y . t . t. 3 2 0 0 , , , , , 1 1 1 1 1 9 9 9 9 9 1 1 1 1 1 6 6 6 6 6 6 7 6 1 6 8 5 2 , , , , 7 8 5 3 0 1 2 4 7 3 3 1 J N N J N a u o o o n l v v v y ., , . . . 1 , , , 1 9 1 1 1 9 1 9 9 9 1 1 1 5 1 5 4 4 4 , , , , , t t o t t t o o o o A J D J D p u u e e r n n c . c e e . . 1 3 3 3 3 ,1 1 0 1 0 9 , , , , 1 1 1 1 1 9 9 9 5 9 1 1 1 1 . 5 5 4 5 . . . . 433;ooo bonds also formed the subject of recommenda- 1 Date when dividend was declared. tion. It was the practically unanimous opin- 2 Five per cent dividend for period November, 1914, to Dec. 31,1915. * One per cent .dividend for period November, 1914, to Dec. 31,1915. ion of the representatives of reserve banks that 4 Preliminary estimate. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

JANUARY 1, 1917. FEDERAL RESERVE BULLETIN. Purchase of United States Bonds. Reserve Board to open and maintain banking accounts in foreign countries, appoint corre- A comparatively small amount of United spondents, and establish agencies in such •States 2 per cent bonds were offered for sale countries wheresoever it may deem best for the purpose of purchasing, selling, and colby member banks of the Federal Reserve syslecting bills of exchange and to buy and sell tem to Federal Reserve Banks during the last with or without its indorsement through such quarter of 1916. These bonds are offered un- correspondents or agencies bills of exchange der section 18 of the Federal Reserve Act arising out of actual commercial transactions," through the Treasurer of the United States. so that a broad field of operations is opened under it. Owing to the fact that Federal Reserve Banks In granting the authority to establish this had already purchased more than $25,000,000 agency the Board has authorized the Federal of this kind of bonds during the year 1916, the Reserve Bank of New York to maintain ac- Board did not require further purchases. counts either with or for the Bank of England. The resolution covering the matter was Operations both in England and in the United States are thus possible. adopted on December 27, 1916, and was as Other Federal reserve banks may participate follows : in the agency relationship with the Bank of Whereas it appears that the 12 Federal Re- England upon the same terms and conditions serve Banks have purchased in the open that will govern the Federal Reserve Bank of market bonds in excess of the amount which New York, if they so desire. might have been allotted to such banks at the end of this quarterly period on the basis heretofore determined upon and announced Bankers' Acceptances., by the Board: Now, therefore, be it Resolved, That it is the sense of the Board The following figures compiled by the stathat no necessity exists for enforcing the retistical division of the Federal Reserve Board quirement provided for under section 18 of the Federal Reserve Act at the end of this quar- present the latest available facts with referterly period ending December 31, 1916, and ence to the growth of the use of bankers7 acthat it will not, therefore, at this time require ceptances: the Federal Reserve Banks to purchase any of the bonds which are offered for sale by member Amounts of acceptances in the foreign and domestic trades banks through the Treasurer of the United reported by banks and trust companies in Greater New York under date of Nov. 11 and 29, respectively, com- States under the provisions of section 18: Be it pared with like figures for Sept. 12 and 20, 1916. further Resolved, That the Secretary be instructed NATIONAL BANKS. to send a copy of this resolution to the various Federal Reserve Banks and to the member Nov. 17. Sept. 12. banks which have offered bonds for sale in order that they may be notified of the action Bank of New York $4,654,300 $4,260,900 Merchants 962,500 451,900 of the Board in the premises. Mechanics & Metals... 6,550,300 5,363,400 National City 13,902,900 8,419,500 Chemical 90,400 116,100 Atlantic 38,500 37,900 American Exchange.. 4,116,800 4,416,000 Bank of England as Foreign Agent. Bank of Commerce 12,261,300 9,182,700 Hanover 3,583,300 3,225,000 Citizens' Central 438.200 26,400 The following press statement was issued Market & Fulton 9,000 13,500 •Importers' & Traders'. 753,500 25,000 December 25: National Park 3,139,100 3,244,900 East River 89,200 The Federal Reserve Board has authorized the Irving 3,108,100 2,652,000 Chase 6,482,200 7,614,200 Federal Reserve Bank of New York to appoint Garfield 5,200 5,200 Seaboard 12,400 as one of its foreign correspondents and agents Liberty. 683,300 550,000 the Bank of England, of London, England, Coal &vIron 118,200 51,600 Union Exchange 41,500 under the terms of the Federal Reserve Act. Battery Park 438,000 126,300 Bronx 12,200 10,000 Section 14 of the act permits any Federal reserve bank "with the consent of the Federal Total. 61,359,700 49,923,200 73976—17 2 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FEDERAL RESERVE BULLETIN. JANUARY 1, 1917. Amounts of acceptances in the foreign and domestic trades, At the conference of Federal Reserve Agents etc.—Continued. held in Washington on December 4-7, a com- TRUST COMPANIES. mittee to which was submitted the question of bankers7 acceptances, presented a report in Nov. 29. Sept. 20. the course of which the following statement Bankers' Trust Co 556,400 $8,957,600 was made: Astor Trust Co 200,000 Guaranty Trust Co 043,200 "4i,'635,'5(J6 "The entrance in a substantial way of the L Fi a d w e y li e t r y s T T r i u tl s e t & C o Trust Co 1 3 6 3 6 , , 3 7 0 0 0 0 American bankers7 acceptances in ordinary Columbia Trust Co 761.800 1,351,700 commerce, and the adoption by many bankers New York Trust Co 100,000 Broadway Trust Co 953,500 997,000 of this method of financing not only imports Central Trust Co 650,000 1,450,000 Commercial Trust Co 1,000 and exports, but domestic trade, contemplated Equitable Trust Co 622,600 7,021,600 under the recent amendment to the Federal Farmers' Loan & Trust Co 097,900 7,399,600 Hudson Trust Co 4,000 Reserve Act, are most encouraging signs of Peoples' Trust Co., Brooklyn 100,000 Franklin Trust Co., Brooklyn 715,000 progress. They of themselves justify the enactment of the Federal Reserve Act, and should Total 89,005,400 68,213,000 be encouraged in every possible way. "While in the beginning accepting was STATE BANKS. limited to the larger banks, most of which were Nov. 29. Sept. 20. experienced in foreign transactions, and were familiar with and informed on acceptances, Corn Fxchange Bank $2,952.200 SI, 971,100 now the question of acceptances is creating a W. R. Grace & Co.'s Bank 490;100 wider interest, and officers of reserve banks Total 3,442,300 1,971,100 are frequently being asked to supply information, and reply to various inquiries involving RECAPITULATION. limitations, restrictions, privileges, etc.77 | Nov., 1916. Sept., 1916. National Banks '. '$61,359,700 §49,923,200 Trust companies ! 89,005,400 68,213,000 Operation of the Clearing Plan. State banks ! 3,442,300 1', 971,100 All banks and trust companies in greater New ! The following table shows briefly the clearing York 153,807,400 120,107,300 operations of the Federal Reserve system for Acceptances held by Philadelphia national banJes on Nov. 17the monthly period ending December 15, 1916, and Sept: 12, 1916. with comparative figures for each of the four Nov. 17. Sept. 12. preceding months: Corn Exchange National Bank 31,812,600 8181,600 I Operations of the Federal Reserve inter district clearing sys- F F o ra u n r k th li n S t N re a e t t i o N n a a t l i o B n a a n l k Bank 17 5 6 , , 3 40 0 0 0 11 3 9 , , 7 10 0 0 0 • I tem, Nov. 16 to Dec. 15, 1916. Girard National Bank 1,283,300 100,000 ! Market Street National Bank 208,300 85,000 | Philadelphia National Bank 4,376,800 3,602,400 | Non mem- U Tr n a i d o e n s T m N o a e ta t n i l ' o s . n N al a t B io a n n a k l Bank 8,6 7 4 7 0 7 ,0 , 0 3 0 00 5,0 9 8 2 6 1 6 6 , , , 4 0 6 0 0 0 0 0 0 i i Bank. A h n o d a f u v a n m e i i d t r l e b l a v e m e g . d r e s a c A m l d e v o a a e u r i r i l n a n y t g g e o . f M d b i i n s e a t m n r th i k b c e s e t. r \ b e a c w r r f h e r h e o b i c c m a c o k n h l s k - s lected at In addition the Philadelphia national banks i par. on November 17 show contingent liabilities ' Boston 38,479 813,153,317 402 242 as indorsers on acceptances bought and New York 42,551 28,307,438 625 313 Philadelphia.. 30,081 16,545, 774 632 292 resold, as follows: Girard National Bank Cleveland 15,873 8,320,355 754 496 r Richmond 17,064 8,062,500 520 286 $2,871,800; Philadelphia National Bank, $15,- Atlanta 13,851 4,689,214 390 440 Chicago 120,452 13,220,268 1,269 500. St. Louis 10,039 8,402,904 881 Minneapolis... 15,613 8,828,269 759 1,100 For all trust companies and State banks in Kansas City 13,782 7,791,296 941 1,412 Dallas , 12,734 6,521,235 621 238 Maryland the following figures showing aggre- San Francisco., 5,519 1,761,162 521 1,096 gate liabilities on acceptances in the foreign Total Nov. 16 to Dec. 15... 236,038 125,603,732 7,627 8,065 Oct. 16 to Nov. 15... 227,489 115,061,224 7,623 8,059 and domestic trade are available: Sept. 16 to Oct. 15... 204,891 97,666,107 7,618 7,459 Aug. 16 to Sept. 15.. 177,397 78,559,704 7,618 7,449 July 15 to Aug. 15... 133,113 59,301,696 7,624 7,032 Sept. 12, 1916 $2,728,100 Nov. 17, 1916 3,308,100 1 Does not include Government checks averaging 2,062. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

JANUARY 1, 1917. FEDERAL RESERVE BULLETIN. Meeting of Governors. Class C Directors Selected. Governors of Federal Reserve Banks held a The Federal Reserve Board has thus far meeting in Washington, December II to 14, made selection of the following Class C directors at the close of which they gave out the follow- in cases of vacancies where terms expire on ing: December 31, 1916. Terms of directors are A conference of the governors of Federal for three years unless otherwise indicated. Reserve Banks was held at the Shoreh&ixi Where designation has been made for Federal Hotel, Washington,"D. C., December 11 to 14, lieserve Agent or Deputy Federal Reserve inclusive. There were present Messrs. A. L. Agent the term is for the year ending De- Aikon, governor of the Federal Reserve Bank of Boston; G. J. Sea}', of Richmond; C. J. cember 31, 1917: Ehoads, of Philadelphia: EoIIa Wells, of St. Disirict No. I, Boston.—Walter S. Hackney.3 Louis; Theo. VYold, of Minneapolis; J. A, District No. 2, New York.—Pierre Jay.2 McCord, of Atlanta; Vice Gov. RT H. Treman, District No. 3, Philadelphia.—Henry B. Thompson.1 of Now York: J. Z. Miller, of Kansas City; E. L. District No. 4. Cleveland.—Lyman r.«. Trcadway.1 Van Zandt, of Dallas; E. R. Fancner, of District No. 5, Richmond.—James A. -Joricure.1 Cleveland; J. B. McDougal, of Chicago; Mr. District No. 6, Atlanta.—W. II. Xettig. J. F. Curtis, counsel of "the Fedora! Reserve District- No. 7. Chicago.—William A. Heath 3 (two-year Bank of Now York and secretary to the conterm). E. T. Meredith (tliree-year term). ference; also Mr, Marcus Walker, manager of District No. 8, St. Louis. the New Orleans branch of the Federal. Re- District No. 9, Minneapolis.-—John W. Black. serve Bank of Atlanta; Mr. L. II. liendricks, District No. 10, Kansas City.—F. W. Fleming. assistant cashier of the Federal Reserve Bank District No. li, Dallas.—!VI. 0. Wocton. of Now York: Mr. C. C. Bullen, auditor of the District No. 12, San Francisco. Federal Reserve Bank of Boston; and Mr. A. II. liale, auditor of i'Jie Federal Uoservo B&nk of St. Louis. The governor^) 'hold several meotings with Class A1-and B Directors Elected, the Federal lieserve Board and "with various The following Ckss A and B directors have committees of tho Board, at "winch topics connected witii the administration of th.o banks beers, elected by the Federal Reserve Banks were taken up for discussion and recommenda- for the three-year term beginning January 1, tions made. 1917: Among the subjects considered were the following: Disposition of Government bonds; Fed- District No. I, .Boston: eral Reserve Banks as iiscai agents of the Gov- Glass A—ThoTxias W. FaiTiam, New Haven, Com::. ernment; uniformity in reports of reserves z*id Class B- E. R. Morse, Proctor, Yt. enforcement of reserve penalties; report of the .District No. 2, Ne^v York: transitmanagers' conference held at Chicago; re- Class A—"William Woornv&rii, Nev-' York City. port of the auditors' meeting held at Chicago; Class B—K. K. Tovr.no, New York City. handling of gold settlement fund; retirement of District No. 3, Philadelphia: national bank notes: vault reserves; purchase of Class A—M. 7>. Murphy, Clarks (keen. Fa. domestic and foreign acceptances; conversion of Ckss B—Alba B. Johnson, Philadelphia, Pa. 3 per cent Treasury notes into 30-year 3 *per District No. 4, Cleveland: cent bonds; treatment of organization expen- Class A—W. S. Rowe, Cincinnati, Ohio. ses; collections and clearances; loans on farm Class B—R. P. Wright, Erie, Pa. land and other real estate; national banks as District No. 5, Richmond: insurance agencies; the accumulation of. gold Class A—J. F. Bruton, Wilson, N. C. by Federal Reserve Banks; and the establish- Class B—J. F. Oyster, Washington, D. G. ment of branches or agencies of Federal Re- District No. 6, Atlanta: serve Banks. Class A—F. W. Foote, Hattiesburg, Miss. The conference adjourned to meet subject W. H. Hartford, Nashville, Tenn. to call without any definite time or place for 1 Designated as Deputy Chairman and Deputy Federal Reserve Agent. the next meeting. 2 Designated as Chairman and Federal Reserve Agent. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FEDERAL RESERVE BULLETIN. JANUARY 1, 1.017. District No. 7, Chicago: the belief of the committee that development Class A—J. B. Forgan, Chicago, 111. of the trade acceptance plan should be part of Class B—John W. Blodgott, Grand Eapids, Mich. any general publicity scheme, if such action District No. 8, St. Louis: should be taken by the conference and ap- Class A—Sam A. Zicgler, Albion, 111. proved by the Board. Class B—W. B. Plunkett, little Eock, Ark. The committee is of the opinion that the best District No. 9, Minneapolis: results now can be obtained through trade Class A—E. W. Decker, Minneapolis, Minn. organizations, trade papers, chambers of com- Class B—F. R. Bigolow, St. Paul, Minn. merce, credit men, etc. Particularly is it District No. 10, Kansas City: desirable to get a number of users of accept- Class A—W. J. Bailey, Atchison, Kans. ances in a single trade or industry, as others are Class 1)—M. L. McClure, Kansas City, Mo. encouraged to their use if it bo noticed that Class B—Harry W. Gibson,1 Muskogee, Okla. their competitors have adopted the plan. One District No. 11, Dallas: of the principal arguments for delay by many Class A—B. A. McKinney, Durant, Okla. concerns who are interested and convinced is Class B—Marion Sansom, Fort Worth, Texas. the fact that their competitors continue the District No. 12, San Francisco: book account plan, and they 'can not afford to Class A—C. K. Mclntosh, San Francisco, Cal. risk alone the innovation and changed methods. Class B—E. H. Cox, Madera, Cal. The committee also wishes to point out the desirability of having concerns who are obtaining trade acceptances in settlement of their own Trade Acceptances. purchases. We are a^dvised that a number of companies have a printed form of trade accept- Steady progress is being made at Federal ance drawn on themselves which they send to Reserve Banks in promoting the use of the the concerns from whom they purchase, retrade acceptance. At the meeting of Federal questing that drafts on them accompany all Reserve Agents in Washington, held on De- invoices sent. cember 4-7, the subject was carefully discussed, The committee has a list of 70 companies who are using trade acceptances with satisfacand the committee on trade acceptances subtion. These users of trade acceptances repremitted the following report: sent 40 different kinds of businesses and are This committee, which made a report to the located in 18 States. The largest number of last conference of Federal Reserve Agents, has users are dealers in cotton, cotton goods, and endeavored to keep in touch with the progress cotton mills. The lumber business seems to these acceptances have made since that time rank next to the cotton business in the number with a view to bringing in this additional of concerns using acceptances. While the acreport, which is now submitted. ceptance plan seems to find a readier reception Your committee believes that there has been among concerns of smaller capital, the list is a gradually increased use of trade acceptances, not without a number of names of high rated but that the movement is not gaining strength compamies. The information in respect to in proportion to the opportunities and influence the number of companies using trade acceptof the Federal Reserve System. While con- ances and the above analysis thereof is based siderable satisfactory work of development and on very incomplete data obtained by inquiry education has been seen in various parts of the from the Federal Reserve Banks, and in our country,, the efforts so far appear to be scat- opinion the list of companies referred to reptered and without cooperation, especially resents only a small proportion of the cc-ncerns among the Federal Reserve Banks. Since the that have made a beginning in substituting trade acceptance plan is acknowledged to be the trade acceptance for the open account. scientific and preferable to the book account We recommend that each Federal Reserve system, and since the Federal Reserve Board Bank secure standard forms of trade accepthas recognized and given the system authority ance and supply these to their member banks, and standing among the federal Reserve accompanied by a circular explaining the Banks, there should be no reluctance on the advantages, with all essential details. part of any Federal Reserve Bank to push the D. C. WILLS, Chairman. movement with vigor and persistence. It is FREDERIC H. CURTISS. PIERRE JAY. i Elected to fill vacancy caused by resignation. Term expires Dec. 31,1917 W. F. RAMSEY. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

JANUARY 1, 1917. FEDERAL RESERVE BULLETIN. Mr. 11. H. Treman, acting governor of the fear of losing customers who may not, at first, Federal Reserve Bank of New York, lias re- take kindly to the change to definite maturities, and there is also the feeling that as busicently discussed the subject of trade acceptness has been successfully conducted with the ances in an address delivered before the Naopen book account, why change to a new tional Hardware Association of the United system, even if better, which would involve States 'and the American Hardware Manufac- trouble and expense in the change. turers Association. Mr. Treman enumerated (h) That man}" a successful business man of to-day would never have attained success if the following objections and advantages inherhis business had not been fostered and assisted ent in the trade acceptance plan: by the extension of credit by the jobber and Let us now consider the objections, and later | manufacturer beyond the actual terms, when the adT vantJa ges connectJ ed"1 wi• ti h1 tJh 1 e use ofI1 tJ h1 e • a crop f/* ai* l"Bu re or otJ hI er catII astroph1 e 'Ih ad\ overtrade acceptance. taken him. Among the objections offered to the pro- Those objections represent the sum total ofposed change are: fered during several months of discussion of (a) That open book accounts are preferable the topic. Those just outlined undoubtedly, in the United States where wholesale distribu- at first glance, apparently present a case against tion is conducted over great distances, where the trade acceptance system, but, while some purchases arc made frequently and in small of these objections arc real and valid, a close amounts, and where variations in trade dis- analysis will show that most of thorn arc based counts and differences in the terms as to length either on an overconscrvativo desire to cling to of credit exist. present methods, however crude and unscien- (b) That if trade acceptances were generally tific, or a narrow viewpoint that sees only local, used hy the two million (estimated) business limited or temporary conditions, or (and this firms in the country and a large proportion of is perhaps the principal basis) a 'total lack of the acceptances should be discounted, it would comprehension of what the trade acceptance entail groat increase in clerical force, books, system is, and how flexibly it can be accometc., by banks, and would tend to an over- modated to our business needs. extension or inflation of credit. Let us now consider the advantages claimed (c) That in ordinary practice some drafts by those who favor the change. They state: will be lost or mislaid, and in other cases they (a) That open book accounts, i. e., dead capwill not be paid at maturity, causing default. ital, will be transferred *iiito trade acceptances, (d) That the acceptance system does not which is live capital, i. e., self-liquidating take into account the necessity of examination commercial credit paper available for the payof goods before acceptance by the merchants ment of debts, and when discounted, like to guard against shortage, quality not up to promissory notes, becomes a basis for issue of samples, and other just causes for returning currency and bank reserves under the Federal merchandise. liesorvc Act. (e) That the best merchants will continue (o) That they show on their faces that they to borrow the capital they need on their own arise out of a bona fide commercial transaction. single name promissory notes, and by continu- (c) That acceptances, being two-name drafts, i^n g t—he.v ,puravctvivc e —of v^ovp^exn ^bvo^o k^ wacvc^ou.^n,t s,v ^thj eyj area rsea fsearf,e rm, omreo rleiq luiqidu ifdo rf obra nbkaenrkse rtos thoo lhdo, lda,n dand r W will give the buyer longer credits than those j more likely to be paid at maturity than singlewho adopt the trade acceptance plan, and thus | name promissory notes. will hold and increase their business to the | (d) That banks would have better knowledge detriment of their competitor. of a borrower's financial position through trade (/) That it is suggested that bankers "will not drafts instead of direct notes. favor this change because they arc content to (e) That the trade acceptance system would loan their money on single name paper on which practically eliminate the overdue accounts they secure higher rates than they will be able which, according to the records submitted from to do when they discount trade acceptances. jobbers and manufacturers herewith, amount (g) That there is a natural prejudice on the to about 30 per cent of the sales, and if legal part of the seller against taking "the initiative proceedings are necessary, a trade acceptance in bringing about a better credit system for is much better to have than an open book Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

10 FEDERAL RESERVE BULLETIN. JANUARY 1, 1917. account, because the seller has an acknowledg- ance," has authorized special rates of discount ment in writing of the account. for this class of paper, and that all Federal (£) That the use of the trade acceptance Reserve Banks in establishing rates have made would remove the necessity for the manufac- a rate generally one-half per cent of 1 per cent turer or jobber, with somewhat limited capital, lower for trade acceptances than the rate for borrowing so heavily in order to act as banker promisso^ notes. •in supplying credit to customers, as is now Probably other advantages can be cited, but done to such an unreasonable extent. these will bo sufficient to indicate the principal (g) That the trade acceptance "tyould reduce reasons given for the adoption of the trade loss by bad debts by effecting prompt pay- acceptance system, and they would seem to be ments, and would save the interest on overdue convincing. accounts. (h) That trade acceptances would tend to educate the retailer, who will have acceptances to meet at certain definite times, not to over- Loans of Principal Belligerent Nations. buy, thus tying up too much of his capita;!, or to extend too long credits to his own customers, The following compilation basedjehiefly upon both of which are serious defects in the present official materialfshows tbe*growth|of national business system. indeb tedness|since|the outbreaKof I the waif to (i) That trade acceptances will tend to elimthe most recent available date. Figures are inate the abuse of the extension of credit to shown for the UnitedfKingdom, France, Russia, those retailers who, having but little real capital themselves invested, learn to conduct their Germany, Austria, and Hungary. business principally on the credit extended to them by rival jobbers or manufacturers. UNITED KINGDOM. (j) That those who settle by trade acceptances will put themselves into the class of pre- BORROWINGS OF'2 THE f BRITISH GOVERNMENT. ferred buyers, the same as those who discount for cash, as against those who will decline to According to the London Statist of Novemgive a trade acceptance and. insist upon a long ber 18, the British public (both funded and unopen-book account. Ultimately goods will be funded) debt at the end of March, 1914, stood sold to those who demand long credits on the at £707,654,000, from which it was raided to basis only of higher pfice over those who discount or send trade acceptances. £1,165,801,702 at the end of March, 1915, and (Jc) That the trade acceptance system, even to £2,196,439,245 at the end of March, 1916. with small retailers, would work a great im- Since April 1, 1916, an additional £1,052,000,provement on our whole merchandising system, 000 of loans have been raised, including the and tend to make the untrained and unsysrecent American loan of about £60,000,000. tematic tradesman of less menace to his competitor who does business on sound methods. Ab6ut the middle of November the national (I) That trade acceptances would curtail or debt of the country amounted to approximately end the bad practice of taking unearned or £3;250,000,000, of which between £600,000,000 unauthorized discounts, would curb the unfair and £700,000,000 represented loans to allies practice of returning merchandise after shipand dominions. ment has been made, would tend to stop the pernicious habit of assigning or hypothecating The following table, taken from the Statist book accounts to secure working capital, and of November 18, 1916, shows the war borwould operate to reduce the overhead costs of rowings of the British Government during doing business and enable both manufacturer the present fiscal year (since Apr. 1, 1916) and jobber to sell at lower prices. and the total borrowings since August 1, (m) That the Federal Reserve Board, recognizing the advantages of the " trade accept- 1914: Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

JANUARY 1, 1917. FEDERAL RESERVE BULLETIN, 11 FRANCE. Apr. 1,1916, j Total from to Nov. 11, Aug. 1,1914, to 1916. Nov. 11,1916. GROWTH OF THE FRENCH NATIONAL DEBT SINCE AUGUST 1, 1914. Treasury bills (all maturities) £536,554,000 £1,087,022,000 6 per cent exchequer bonds due February, 1920 ;.. 89,342,000 I 89,342,000 The following data regarding French public War expenditure 2-year certificates 27,910,000 ! 27,910,000 War savings 5-yoar certificates 34,550,000 I 35,800,000 expenses authorized to the end of the calendar " Other'' debt i 86,106,000 I 95,106,000 Ways and means advances 37,000,000 i 56,896,000 year 1916, and the growth of the French na- 3} per oent war loan, 1925-19282 331,798,000 3 per cent exchequer bonds, March, 1920 31,547,000 tional debt up to August 31, 1916, are taken 4£ per cent war loan, 1925-1945 » 582,630,000 5 per cent United States of America loan mainly from the financial statement submitted ^(October, 1915) 50,820,000 5 per cent exchequer bonds: * to the French Senate on September 15, 1916, D D u u e e D O e c c to e b m e b r, e r 1 , 9 1 1 9 920 3 8 4 4 , , 2 1 2 4 2 0 , , 0 0 0 0 0 0 j j 2 3 3 4 7 , , 2 8 2 2 2 9 , , 0 0 0 0 0 0 by M. Eibot, the French Minister of Finance, Due October, 1921 62,464,000 j 62,464,000 and reprinted in the official Bulletin de Sta- Total. 992,288,000 j 2,723,386,000 tistigue et de Legislation Gomparee for Sep- Equivalent in United States dollars. 4,828,970,000 13,253,358,000 tember, 1916. J Through conversions £62,774.400 in issue Mar. 31, 1916. 2 £899,997,072 in issue Mar. 31,' 1916, owing to conversions. A comparison of the Government expendi- 3 Includes inter alia, 5 per cent United States of America collateral loan, September, 1916, for $250,000,000. tures and ordinary receipts effected between 4 Issue suspended. August 1, 1914, and July 31, 1916, indicates a United Kingdom currency notes issued and held by the Bank deficit of about 35 billion francs. To this of England, also portions secured by coin and bullion and by Government securities, 1914-1916, total should be added the amounts advanced by the French treasury to the allied Govern- [From the London Economist.] ments which up to July 31, 1916, aggregated [000's omitted.] about 1,650 million francs, also amounts 1 Secured ' Secured advanced to chambers of commerce, to socie- Per ! byOovi "and cent. i ernment ties for assisting wounded military persons, •j bullion. - isecurities. and advances to the State railroads for capital 1914. ! expenditures, pending the issue of bonds. Aug. 26 1 £21,535 £11,423 Sept. 30 ! 28,409 9,104 £4,500 15.8 : £10,924 Considerable payments were also made for Oct.28 1 31,367 5,778 9,500 30.3 i 13,924 Nov. 25 ! 34,134 5,772 13,500 39.6 13,924 the benefit of the departement du Nord and the Dec.30 i 38,478 9,286 18,500 48.1 ' 9,924 food distribution service for the civil popula- 1915. Jan. 27.. 35,409 31 22,500 63.6 11,924 tion. Moreover, the departements, communes, Feb. 25.. 36,661 1,079 26,500 72.3 8,924 Mar. 31.. 39,802 3,520 27,500 69.1 8,623 the State Savings Bank (Caisse des depdts et* Apr. 28.. 42,099 5,837 27,500 65.3 8,623 May 26.. 45,160 7,237 28,500 63.0 9,586 consignations), army treasuries, and various June 30.. 46,577 8,655 28,500 61.3 9,586 Julv28.. 45,387 4,250 28,500 61.8 9,586 other public bodies had to draw upon their Aug. 25.. 52,201 14,759 28,500 52.5 9,586 Sept. 29.. 72,022 22,969 2S3 500 39.5 20,400 current accounts, which at the beginning of Oct. 27.. 81,852 i 8,727 28,500 35.0 44,621 Nov. 24.. 90,226 j 17,114 28.500 31. 5 44,621 the war showed quite large credits. Dec. 29.. 103,125 j 20,536 28; 500 27.6 54,621 I The result of all these operations, while not 1916. Jan. 26.. 5,245 28,500 29.2 61,577 Feb. 23.. 97,758 6,450 28,500 28.7 65,203 affecting directly the State expenditures, adds, Mar. 29.. 99,345 7,902 28,500 26.6 71,121 Apr. 26.. 106,691 12,876 28,500 24.5 75,718 however, about 3 billions of francs to the def- J M u a n y e 2 3 8 1 . . . . 1 11 1 8 6 , , 5 2 5 4 0 4 7 7 , , 1 00 5 5 5 2 2 8 8 , , 5 5 0 0 0 0 2 2 3 4 . . 4 0 | 8 8S 3 , , 7 7 7 5 5 8 icit burden of the treasury, which accordingly A Ju u ly g . 2 3 6 0 . . . . 1 1 2 2 5 2 , , 4 0 8 9 6 9 6 5, , 8 3 7 3 9 8 i 2 2 8 8 , , 5 5 0 0 0 0 2 2 2 2 . . 0 6 9 9 7 2 , , 5 1 2 5 9 7 by July 31, 1916, had reached a total of 38 S N O e o c p t v . t . . 2 2 2 5 9 7 . . . . . . 1 1 1 1 3 2 3 3 1 9 5 6 , , , , 5 6 3 5 5 1 2 8 9 9 5 2 j 5 5 5 , , , 4 9 5 4 6 7 8 4 5 2 2 2 8 8 8 , , , 5 5 5 0 0 0 0 0 0 2 2 2 1 0 1 . . . 6 9 1 i 1 1 9 0 0 9 3 5 , , , 3 8 3 2 6 2 1 2 3 f b o il ll l o io w n i n f g ra n lo c a s. n o T p h e i r s a t d i e o f n ic s i : t was covered by the I Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

12 FEDEEAL RESERVE BULLETIN. JANUARY 1, 1917. Million francs. the disposal of the Bank of France for the needs 5 per cent rente loans yielding a total of 11, 925 of the foreign exchange market in the shape of Two loan operations in United States 1,476 treasury bills (in pounds sterling) renewable National defense short-term bonds ("obligations") during the war and the years immediately folnot converted into 5 per cent rente; amount issued to July 31,1916 1,037 lowing the conclusion of peace, the bank in (This amount is offset by the amortization of turn lending to the British treasury or to the the old six-year bonds to an amount of 283 Bank of England gold, which is to be repaid at millions.) the termination of war, whenever it should be Treasury bills (bons du tresor) disposed of in needed for the resumption of specie payments. England representing on July 31,1916, a total of. 2,315 The issue of national defense treasury bills. proved The statement adds, "A new convention is a continued success. Deducting all reimburse- to be signed regarding this matter between the ments and conversions the net yield from these French and British Governments, which will issues totaled 13,166 assist us to meet most of our commitments to- Increase in the amount of funds- deposited by the ward those countries which are our principal public with the national treasury '. 142 Advances of the Bank of France up to July 31,1916. 8, 300 purveyors, including Great Britain itself, and Advances of the Bank of Algeria up to July 31, to maintain the stability of our exchanges/7 1916 45 Appropriations authorized or applied for since Aug. 1, 38,406 1914. Less amount of 6-year bonds amortized 283 Decrease in amount of ordinary Treasury [Source: Bulletin cle Statistique, Sept., 1916. In thousands of francs.] bills "outstanding 395 678 I Calendar year. 137, 728 19M 1915 1916 Total. J_ Of this total only 22 per cent came from the Military expenditures proper.! 5,867,251'15,704,418 23,600,67545,232,444 banks of issue in the shape of fiduciary circu- Public debt 60,332| 1,900,024 3,005,207 4,965,562 Expenditures of social solilation and 78 per cent, or almost four-fifths, darity 494,465! 2,673,251 3,290,242 6,457,959 Purchase of food for the susfrom voluntary contributions by the public. tenance of the civil population 20,000 166,800 186,800 Speaking of the general financial situation, Other expenditures 147,386| 2,261,124 2,394,771 4,803,181 M. Kibot discussed the question of payments Total. 6,589,434122,705,617J32,350,895J61,645,946 i I I which the national treasury has to make Movement of the French public debt from July 31, 1914, to ,abroad as the result of foreign purchases for Aug. 31, 1916. national defense purposes and in providing food [Source: Bulletin de Statistique, Sept., 1916. In thousands of francs.] for the civil population. Increase Decrease The monthly average of these payments from since July since July 31,1914. 31,1914. about 250 million francs in 1915 had gone up to about 600 millions about the middle of 1916. A. Consolidated or long-term debt: This increase, the minister adds, would have 5 per cent loan, 1915 (760,244,273 francs of rente) 15,204,885 been even greater had not the Government de- 3 per cent rente delivered in part payment a/c loan (65,000,000 francs of rente) 2,166,666 cided to draw more largely on the resources of 3£ per cent amortizable "rente" delivered as part paj'ment a/c subscription for— the country and order only those things 1. National-defense short-term bonds (28,641,368 francs of rente) .; 845,176 abroad which could not be furnished by na- 2. 5 per cent loan (939,800 francs of rente) tional labor. Total j 15,204,885 3,011,842 To the amounts of foreign purchases should be added the growing sums represented by in- B. Debt repayable within short term after termination of hostilities: terest on loans and on advances received, also the National-defense short-term bonds (obligations) 1,159,724 amounts which the French treasury places at 6-year bonds: Law of Feb. 17,1898 ! 159,750 Law of Sept. 26,1908 1 35,000 1 Exclusive of the decrease by 295 millions in the amount of cash on L L a a w w o o f f A Ju p l r y . 3 4 0 ,1 ,1 9 9 1 1 4 3 | j 7 8 9 , , 7 77 6 0 0 hand in the treasury between July 31,1914 and 1916. Franco-British loan in the United States j 1,295*000 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

.7 iXUAUY 1, 1917. EEDEEAL RESERVE BULLETIN. 13 Movement of the French public debt from July 31, 1914, to ?. Issues of national defense treasury bills (bons de la de- Aug. SI, 1916—Continued. fense nationale, exclusive of bills in 5 and 20 franc denominations) . [In millions of francs.] Increase Decrease since July since July 31,1914. 31,1914. 1914 1915 1916 Total. B. Debt repayable within short term after ter- I Gross issues 1,696 16,388 17,977 36,061 mination of hostilities—Continued. ! Less amounts retired through reim- Treasury bills (bons) issued to the British • bursement and renewal or applied Treasury I 1,508,156 toward payment en other loans 78 11,044 10,764 21,886 Treasury bills handed to the Bank of England by the Bank of France 1,210,560 Outstanding at the end of vear Advances of the Bank of France 8,400,000 and on Aug. 31,1916 ". 1,618 5,344 7,213 14,175 Advances of the Bank at Algeria 100,000 Advances of the syndicate of principal banks in the United. States 518,000 Total : 14,191,440 j 283,280 LOAN OPERATIONS SINCE AUGUST 31, 1916. Net increase 13,908,160 I A second*5 per cent "rente" loan was issued C. Floating debt: Ordinary treasury bills (bons ordinaires) i 394,520 in October, 1916, which, according to official National-defense*treasury bills 14,183,178 i Treasury bills placed abroad 302,640 | announcement of the minister of finance on Total 14,485,818 j 394,520 November 9, amounted to 11,360 million Net increase 14,091,298 j francs. In payment the Government received Recapitulation showing net increases of the several classes of the French public debt: 950 millions of national defense short-term A. Consolidated or long-term debt 12,193,043 B. Debt repayable within short term after bonds, about 3,500 millions of national defense termination"of hostilities 13,908,160 C. Floating debt 14,091,298 treasury bills, about 7.4 millions of 3| per cent Total net increase Julv 31,1914, to A nti. 3.1, rente, and about 5,500 millions of cash. Of the 1916 .......... 10,192,501 latter amount, about 160 millions was gold, the total amount of gold turned in by the 1. Issues of national defense short-term bonds (obligations de la defense nationale). public to the Bank of France and the treasury since the opening of the war being nearly During the year 1915 a total of 3,823 million francs nominal of national defense short-term bonds was sold by public 1,900 million francs. As a result of the sucsubscription. In payment therefor the Government cessful issue of this loan, the Government was received: able to return about 2,200 millions of the Million francs. 8,500 millions received as advances from the Cash 2, 525 National defense treasury bills 372 Bank of France. Moreover, during Septem- 28,585,000 francs of 3J amortizable rente (esti- ber, 1916, the unfunded part of the namated capital value) 817 tional debt was increased by the following 3,714 amounts:1 Mmions In addition to the bonds sold to the public, totaling. 3, 823 of francs. there was delivered to the Belgian Government for Sale of national defense treasury bills 891 the purpose of redeeming Belgian and Congo Sale of national defense short-term bonds (obligatreasury bills a total of 137 tions de'ccnnales) 260 Total 1,151 Total of short-term bonds issued during 1915. 3, 960 Increase in amounts of funds deposited with Govern- , Of this total there was returned to the Government as part payment on the 1915 5 per cent loan 3, 327 ment treasuries 16 Following the conclusion of the new convention Leaving thus a balance outstanding of 633 with the United Kingdom, there were discounted During 1916 there was issued a total of 527 in England treasury bills totaling 567 paid for in the following manner: A loan concluded with a syndicate of American Cash 453 banks netted about 183 National defense treasury bills 53.3 The Bank of France advanced during the month.. 100 55,000 of 3<> per cent amortizable rente.. 1.6 And the Bank of Algeria 20 507.9 Total loans realized during September 2,037 Total of national defense short-term bonds outstanding on Aug. 31, 1916 1,160 i Economists Frangais, Nov. 18,1910, p. 680. 73976—17 3 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

14 FEDERAL RESERVE BULLETIN. JANUARY 1, 1917. Amounts of Bank of France notes in circulation, also gold GERMANY. held by the Bank of France. GROWTH OF THE EMPIRE^ DEBT. [In thousands of francs.] Between September, 1914, and October, Ju 1 l 9 y 1 4 3 . 0, No 19 v 1 . 6 3 . 0, Increase. 1916, the Imperial Government issued five loans totaling over 47 billion marks, as may be Bank notes in circulation. 6,683,185 16,119,496 9,430,311 seen from the following tabular statement taken f<*3,764,625 Gold in vault 4,141,342 L&l,280,922 largely from the 1916 Statesman's Yearbook: a Held in vault. b Held abroad. [Amounts in millions of marks.] RUSSIA. First loan issued September, 1914,2 (1) 5 per cent treasury bills falling due Oct. 1,1920 1,000 GROWTH OF PUBLIC DEBT, 1914 TO 1917. (2) 5 per cent imperial loan, not redeemable before Oct. 1,1924. 3,460 Second loan issued March, 1915, at 98£: According to official data of the Russian (1) 5 per cent treasury bills (no amount fixed), falling duel ministry of finance, the Russian public debt Oct. 1,1922 1 9,061 (2) 5 per cent imperial loan, not redeemable before Oct. 1,1924. J has increased since January 1, 1914, as follows Third loan issued September, 1915, at 99: (in thousands of rubles): 5 per cent imperial loan, not redeemable before Oct. 1,1924. 12,101 Fourth loan, issued March, 1916: Increase JT anuary 1— ' Total: d y u e r a i r n . g (1) 4£ o p n e r J u c l e y n t 1 , t 1 r 9 e 3 a 2 s , u i r s y s u b e i d ll s a t ( n 9 o 5 . amount fixed), falling due" •10,712 1914 9,888,310 (2) 5 per cent imperial bonds, falling due on Oct. 1, 1924, 1915 10,473,572 585,862 issued at 98} Fifth loan issued during Sept.-Oct., 1916: 1916 , 18,876,731 8,403,159 (1) 4£ per cent treasury bills (no amount fixed) falling due' 1917 25,220,937 6,344,206 between 1923 and 1932, issued at 95. 10,699 (2) 5 per cent Imperial bonds, not redeemable prior to Octo- The following classification of the loans outber, 1924, issued at 98. standing on January 1, 1917, is shown by the Below is given an analysis of the subscriptions official Viestnik Finansov, No. 38,1916, p. 457: to each of the first four German war loans: 1. Loans negotiated in terms of rubles equal to one-tenth of an imperial, or exclusively in j [Source: 1915 Reichsbank report and Statesman's Yearbook, 1916. In. n millions of marks.] terms of foreign currency: thousands (a) Of the "rente" type (without date rubles. First loan. Second loan. of repayment) 50,958 Subscriptions. Number of Amount. Number of Amount. (b) Terminable 2, 743,973 subscribers. subscribers. 2. Loans negotiated in terms of rubles equal Up to 200 marks 231,112 36 452,113 71 to one-fifteenth of an imperial: 300 to 500 marks 241,804 111 581,470- 254 (a) Of the "rente" type (without date 6 1, 0 1 0 0 0 to t o 1 ,0 2 0 ,0 0 0 0 m m ar a k r s ks | 453,143 587 / \ 4 6 1 6 8 0 , , 8 7 6 7 4 6 7 60 3 4 3 of repayment) 3,265,472 2,100 to 5,000 marks 157,591 579 364,459 1,354 5,100 to 10,000 marks 56,438 450 130,903 1,057 (6) Terminable. 8,480,569 10,100 to 20,000 marks... 19,313 307 46,105 745 3. Short term treasury bonds: 2 5 0 0 , , 1 1 0 0 0 0 t t o o 5 1 0 0 , 0 0 , 0 0 0 0 0 m m a a rk rk s s .. . . . 1 3 1 , ,5 6 8 2 4 9 3 4 1 1 5 0 26 7 , , 4 7 0 4 7 2 6 9 4 2 8 6 Sold in Russia 6,500,000 100,100 to 500,000 marks. 2.050 509 4,361 1,066 500,100 to 1,000,000 marks '361 287 538 440 Sold abroad 4,179,964 Over 1,000,000 marks 210 869 325 1,162 Total 1,177,235 4,460 j 2,691,060 9,060 Total 25,220,936 Annual interest charges proposed for 1917 are 669,410,000 Third loan. Fourth loan. rubles, compared with 652,779,000 authorized for 1916. Subscriptions. s N ub u s m cr b i e b r e r o s f . Amount. s N ub u s m cr b i e b r e r o s f . Amount. Amounts of Russian State bank notes in circulation, also gold on hand and foreign gold credits of the Bank. Up to 200 marks 984,358 130 2,406,118 201 300 to 500 marks 858.259 369 967,929 407 600 to 1,000 marks 918,595 844 885,941 794 [In thousands of dollars.] 1,100 to 2,000 marks 530,176 928 468,724 792 2,100 to 5.000 marks 422,626 1,563 347, 725 1,247 Jul 1 y 9 1 1 4 6 . /29, Nov 19 . 1 1 6 6 . /29, Increase. 5 1 , 0 1 , 0 10 0 0 t o to 1 2 0 0 ,0 ,0 0 0 0 0 m m a a r rk k s s.... 1 5 4 3 7 , , 4 59 4 3 5 1,2 8 0 5 2 8 1 4 1 2 3 , , 1 9 5 2 8 7 9 66 0 6 7 20,100to 50,000 marks... 32,840 1,167 30,361 980 50,100 to 100,000 marks... 10,090 850 9,100 734 Bank notes hi circulation 841,174 4,241,141 3,399,967 100,100 to 500,000 marks.. 7,074 1,766 6,308 1,531 Gold on hand 825,884 755.422 i 70,467 500,100 to 1,000,000 marks. 832 695 780 641 Foreign gold credits 72,471 1,107,104 1,034,633 Over 1,000,000 marks 530 1,7.29 574 1,812 Total 3,966,418 12,101 5,279,645 10,712 * Decrease. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

JANUARY 1,1917. FEDERAL RESERVE BULLETIN. 15 The total number of subscribers to the fifth Reichsbank at the beginning of the war and war loan is given as 3,810,696, while the on November 30. The importance of th# number of subscriptions of 2,000 marks and other note issuing banks, as may be seen from below was 3,383,188 or almost 90 per cent of the comparative statement, continues purely the total number. local and of little national significance.1; The following table shows the various classes Comparative statement showing condition of all German of institutions through which subscriptions banks of issue, Nov. 23 and 30,1916. were received: [Source: Deutscher Reichsanzeiger. In thousands of marks of 23.8 cents nominal.] I l F o i a r n st . S l e o c a o n n . d T lo h a i n rd . F l o o u a r n t . h ba 3 R n 0 e k ,1 i , c 9 N h 1 s 6 o - . v. B N B a N o v a v o a n . t r k e 2 i , 3 an , N S B a o 1 a x 9 v n o 1 . k 6 n 2 . o y 3 f , , Reichsbank 479 565 461 1916. Other banks and bankers... 2,895 5,663 7,391 I 6,165 Savings banks 883 1,978 2,877 ! 2,727 C Li o f o e p i e n r s a u ti r v a e n c c e r e c d o it m s p o a c n ie ie ti s e . s . . . 203 3 3 5 8 8 4 4 6 1 8 7 0 ! I 3 8 4 3 9 9 G O o th ld er metallic reserve 2,51 1 8 6 , , 4 4 8 5 8 7 29,375 22,137 Post offices 112 167 ' 171 Currency notesl •. 315,832 852 5,300 Notes of other banks 2,838 5,385 16,573 Total- 4,460 9,060 12,101 j 10,712 Checks and bills, including treasury bills 8,075,687 45,157 26,220 Collateral loans 12.408 2,694 37,304 Securities 75', 482 1,933 10,283 FIDUCIARY CIRCULATION. Other assets 674,938 4,191 10,849 Total 11,692,130 89,587 128,666 Before the war the Imperial Treasury had Capital 180,000 7,500 30,000 issued a total of over 200 millions of its own Surplus 85,471 3,750 7,500 Notes in circulation , 67,678 43,854 notes, the so-called Reichskassenscheine. The Demand deposits 7,333,660 6,273 26,100 authorized amount of these legal-tender notes T O i t m he e r d li e a p b o i s li i t t i s es } 3,661,917 4,386 1 3 7 , , 5 69 2 0 2 431,082 has been raised during the war to 360 million Total 11,692,130 89,587 128,666 marks. In addition there are also in circulation certificates of the war loan banks, the so-called DarlehnslcassenscJieinej of which a maximum issue of 3,000 million marks has been authorized. The total issued by December 31, 1914, according to the Statistisches G O o th ld e r metallic reserve | f \ R b '4 A b ( ' .7 9,850 Currency notes1 1.401 499 Jahrbuch fur das Deutsche Reich (1915 edition, Notes of other banks " 3,533 6,053 Checks and bills, including treasury bills. 15,469 22,785 p. 295) was 1,317 million marks, of which 445.8 Collateral loans 5,593 15,404 millions were in actual circulation, and the S O e t c h u e r r i t a ie ss s ets 2 1 0 , , 8 7 3 * 2 1 1 4 2 , , 5 2 2 31 9 remainder in the vaults of the Reichsbank. Total.. 55,076 j 71,351 At the end of 1915 the total actual circulation Capital 9,000 9,000 of loan bank certificates in 20, 5, 2, and 1 mark N Su o r t p e l s u i s n circulation. 2 2 1 , ,3 2 4 5 4 0 ! 2 1 4 , , 7 3 7 2 3 1 denominations is shown in the 1915 Reichs- Demand deposits 20,712 ! 34,145 Time deposits 103 bank report as 972.2 millions, while the Other liabilities 1,770 2,009 amount of certificates held by the Reichs- Total.. 55,076 71.351 bank on that date was 1,254.8 million marks. 1 Reichs-und Darlehnskassenscheine. The bulk of circulation is composed of the Amount of Reichsbank notes in circulation; also gold held by notes of the Reichsbank and of the other the Reichsbank prior to the outbreak of the war and on Nov. 30, 1916. banks of issue. Below are shown the principal [Source: Wochen-Ubersichte der Reichsbank. In thousands of dollars.] asset and liability items of these banks, including their metallic reserve and notes in circu- Ju 1 l 9 y 1 4 3 . 1, No 19 v 1 . 6 3 . 0, Increase. lation at the latest available dates (Nov. 23 and 30, 1916), also a comparison of the gold in Notes in circulation. 092 442 1,745,411 1,052,969 Gold on hand 298,261 599,400 301,139 vault and the note circulation of the German Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

16 FEDERAL RESERVE BULLETIN". JANUARY 1, 11JJ7. [Source: Gorman Embassy Commercial Bulletin No. 1. December, nearly $20,000,000. Small increases are re- 1916.] ported regularly. For the last week the in- Status of the Reichshcmk of December 7, 1916. crease was $64,524; during the last few weeks ASSETS. the export of gold was considerable. Dollars. Marks. .Grovjth of the gold reserve. July 30, 1914 |323,057,142 Gold. 599,704,000 2,518,758,000 Treasury bills and commercial paper.... j 1,888,302,000 7,930,871,000 Nov. 11, 1915 579, 333, 809 Dec. 7, 1916 599,704,000 LIABILITIES. There are no gold mines in Germany and Notes in circulation 1,652,271,000 6,989,542,000 there have been no imports on a considerable Deposits 815; 136,000 3,423,574,000 scale. The gold accumulated in the coffers of the Reichsbank during the war has been The outstanding notes are covered by gold withdrawn from circulation; its place had. to to 38.2 per cent of the value, or 2.9 per cent be taken by bank notes. During the last above the legal limit, which is 33.3 per cent. weeks the public has sold substantial quantities Since the preceding week, November 30, of superfluous ornaments. The supply of gold 1916. there have been the following changes: from this source will probably be quite considerable, although a certain class of jewelry, ASSETS. wedding rings, for example, will not be accepted. Before the war there was an esti- Dollars. Marks. mated annual consumption of gold for industrial purposes of about $20,000,000. During Gold increase. 64.524 271,000 Treasury bills and commercial paper, the last 50 years $416,000,000 worth of gold decrease 34,524,000 145,003,000 have been used in Germany for jewelry. It is estimated that about $250,000,000 worth has LIABILITIES: remained in the country. A part of this reserve is sure to come forward. The consump- Notes in circulation, increase- 16,245,000 68,230,000 Deposits, decrease 50,726,000 238,252,000 tion of gold for jewelry goes on at present at the rate of 2\ to 3£ million dollars a year; The last detailed statement available in this four-fifths of the jewelry manufactured is country is dated October 31: exported. ASSETS. PAPER CIRCULATION. Dollars-. Marks. During the war the bank-note circulation of the German Empire has increased greatly, Gold 596,600,000 2,506,000,000 just as it has done in other belligerent countries. Silver 3,860.000 ' 16,210,000 Currency notes (Kassenscheine) 2,558; 300 10,745,000 War loan bank certificates 52.071,400 218,700,000 Notes issued by other German banks i '599,520 2,518,000 REICHSUA.NK NOTES IX CIRCULATION. Treasury bills, commercial paper, checks.; 1,875,470,000 7,877,000,000 Loans against collateral ! 3,283,800 13,792,000 July 30, 191.4 $450, 212, 619 S O e t c h u e r r i t a i s e s s e ts j | 1 1 5 8 7 , , 0 7 2 1 0 4 , , 0 2 0 0 0 0 6 7 5 8 9 , , 6 5 0 3 0 1 , . 0 0 0 0 0 0 Nov. 11. 1915 1, 372, 595, 476 Dec. 7, 1916 1, 652', 271, 000 LIABILITIES. Four State banks enjoy the privilege of issuing notes besides the Reichsbank. Their Capital j 12,860,000 180,000.000 j Reserve 2Q, 350,000 85,471'. 000 i circulation was according to the last avail- Notes in circulation ; 1, 728,500,000 7,260,000,000 Deposits '. ! ' 823.570,000 3,459,000,000 able statement of June 30, 1916: Other liabilities 95] 216) 000 '399,912.000 ! Dollars. j, Marks. GOLD STOCK'OF THE REICHSBANK. The stock of gold kept by the Reichsbank , _Ba_va_rian_ _Note Bank. 16,150,000 ! 07,850,000 Bank of Saxony. 10,120,000 | 42,510,000 has nearly doubled since the beginning of the j Bank of wucrttemberg 5,500,000 j 23,130,000 war. During the last year it has increased by | ankofjjadcn 4,200,000: 17,720,000 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

JANUARY I. 1917. FEDERAL RESERVE BULLETIN. 17 This circulation has remained almost sta- For a long time the monthly expenditure for tionary throughout the war. war purposes was about $500,000,000. The Before the war an issue of $57,148,000 entrance of Roumania into the war raised that (240,000.000 marks) unsecured currency notes monthly expenditure during the last four (kassenscheine) was authorized and made months to about $524,880,000. The new legal tender. The amount has since been credit will be sufficient for approximately five raised to 885,714,000 (360,000,000 marks). months. In September the fifth loan was Moreover, the issue of a new circulating me- offered to the people: $2,536,000,000 were dium, the war loan hank certificates, has been subscribed. authorized up to the limit of $714,000,000 Of the $12,380,000,000 (52,000,000,000 (3,000,000,000 marks). The maximum so far marks) voted up to October 27, $10,714,000,000 reached is §603,000,000. (45,000,000,000 marks) have been provided War. loan bank certificates are issued by by long-term loans. The rest is financed by specially organized loan banks. The customer treasury bills which are taken up like commerhas to put up statutory securities as collateral, cial paper, especially by banks and big indusmostly bonds and shares. Other forms of trial concerns. property are occasionally admitted. In every Though the last installment on the fifth case a broad margin is insisted upon, which war loan does not fall due until February 6, has never been lower than 25 per cent of the 1917, 83.3 per cent of the total amount subvalue. The loan is secured not onty by the scribed had been paid up by November 17 collateral, but the borrower has to assume un- of the current year. The number of subscriblimited liability. Behind these obligations of ers was somewhat less than for the two previous the debtor stands the guaranty of the Imperial loans, yet the fifth loan too can be called a Government. "people's loan/'' The loan.is issued in the form of war loan bank certificates, which are really currency A.nahjSiH of the jive war loans. notes and legal tender. These certificates are NUMBER OF SUBSCRIBERS. in small denominations which are eagerly taken up by the public, as there has been a great First Second Third Fourth Fifth demand for small currency since the beginning war loan. war loan. war loan. war loan. war loan. of the war. The rate of interest charged to the borrower is one-half per cent above the bank Subscriptions up to rate. On account of this extra obligation the $500...... 92(5,059 12,113,223 3,291,388 4,728,712 3,383,188 From $525 to 82,500... I 214,029 | 495,302 570,219 461,652 339,062 loans are mostly short-lived and are in demand From S2,500 to S25,- ! j 000 1 34,520 ! 80,254 j 96,375 81,019 78,819 for temporary accommodation. Whenever the From 825,000 to | ! \ loan is repaid, the amount of war loan bank 8250,000 1 2,411 ! 4,899 I 7,900 7,088 8,902 Over 8250,000 ! 210 ! 325 i 530 574 725 certificates outstanding is diminished corre- Total 1,177,235 ,2,094,003 3,906,418 5,279,045 3,810,096 spondingly. Whenever there is big demand : i I | for temporary accommodation, for example, when payments on the imperial loans fall due, AMOUNT SUBSCRIBED BY OIFFEREN1 GROUTS OF INVESTORS. there is a temporary increase in the amount of certificates issued, [In million dollars.] A considerable share of these certificates is held by the Roichsbank, which can issue notes Invested by people subscribing up to against them. When estimating the total $500 :... 174.7 395.7 ! 540. 7 522.3 361.0 From S525 to 82,500... 245.0 574.0 j 058.3 512.8 399. 7 paper circulation these certificates held by the From S2,500to §25,000 245. 7 552.1 | 084.5 500. G 581. 6 Reichsbank ought to be deducted to avoid Fr $ o 2 m 50 .00 8 0 25,000 to 189.5 358.5 j 585.9 ! 519.1 609,5 double accounting. Over 8250,000 206.9 | 270.6 I 411.6 431.4 582.8 Total. 1,061.8 j 2,150.9 j 2,881.0 2,552.2 2,535.2 Intending subscribers for war loans can GERMAN FINANCE. borrow money at the loan banks at some- Up to October 27, 1916, the Imperial Par- what cheaper rates than the ordinary borliament had voted $12,380,000,000 (52,000,- rower. They have to pay one-fourth per cent 000,000 marks). On that day a new credit of above bank rate instead of one-half per cent $2,880,000,000 was granted by the Reichstag. above bank rate. This privilege makes it Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

18 FEDERAL RESERVE BULLETIN. JANUARY 1, 1917. possible for investors to subscribe to war loans Public debt statement as at Dec. 31, 1915—Continued. at a time when they are somewhat short of liquid money. They can use the loan banks, [In thousands of kronen.] but for temporary purposes only, because they have to pay 5.25 per cent to the loan bank, Capital i Y nt e e a r r e l s y t while the war loans net them only 5.1 per cent; amount. charge. no investor would care to shoulder the loss entailed by the permanent use of the loan banks. The Statesman's Yearbook for 1916 gives the following details regarding dates of issue, On November 30 the amount of loans prices, maturities, etc., of the four Austrian war loans, made to May, 1916: granted by the loan banks for the purpose of 4. War loans— enabling borrowers to subscribe to the fifth (a) First loan, issued November, 1914, at 97-£ (5-.V per cent treasury bills, war loan was $72,600,000, or 3.16 per cent of falling due at par Apr. 1, 1920).. -2,200,747 121,041 (b) Second loan, issued May, 1915, at the total amount paid in. 95} (5£ per cent stock, not redeemable till 1925) 2,688,322 147,858 AUSTRIA. (c) Third loan, issued October, 1915, at 93J (5J per cent treasury bills, not redeemable before Oct. 1. Public debt statement as at Dec. 31, 1915. 1930) 4,203,062 231,168 (d) Fourth loan, issued May, 1916— [Source: Nachwoisung dcr Staatsschuldcn-Kontroll-Kommission des 5-i- per cent treasury bills re- Reichsratcs iiber den Stand der Staatsschulden 31 Dezember payable at par in June, 1923, 1915.-7-Vienna, 1916.] issued at 93 2,127,000 5£ per cent bonds to run for 40 [In thousands of kronen. Krone = 20.3 cents nominal.] years, issued at 95J- 2,314,000 (e) A fifth war loan was to be issued in November, 1916. Capital Yearly interest RECAPITULATION. amount. charge. 1. Due to the Austro-llungarian Bank 3,953,956 59,940 2. Austrian syndicate 500,000 22,500 A. War debt: 3. German syndicate 593,880 32,046 1. Due to the Austro-llungarian Bank— 4. 3 war loans 9,09^,131 500,067 (a) Collateral loan, secured by 2^-year 5 per cent treasury bills of 600 Total outstanding war debt Dec. 31,1915. 14,139,967 614,553 million kronen nominal 510,000 25,500 (b) Collateral loan, secured by 5-year 13. Public debt of Austria other than war debt 5 per cent treasury bills of outstanding Dec. 31,1915 12,908,840 510,948 1,696,000,000 kronen nominal 1,272,000 12,720 (c) 13 notes (Solawechsel), at 63,- Total public debt of Austria outstanding 600,000 kronen 826,800 8,268 Dec. 31,1915 27,048,807 1,125,501 (d) 7 notes (Solawechsel), at 63,600,000 Preliminary unofficial iigures show the prokronen 445,200 4,452 ceeds of the fourth war loan, issued in May, (e) 20notes (Solawechsel), at 25,440,000 1916, at 5J per cent, as 4,441,000 kronen 508,800 5,088 (f) Loan against debt receipt 391,156 3,912 Total .. 3,953,956 59,940 Below is given the distribution of the cou- 2. Austrian Syndicate— pon bonds of the first two war loans by denomi- T A r d e v a a s n u c r e y s * b i i n ll s current account 3 2 0 0 0 0 , , 0 0 0 0 0 0 1 9 3 , , 0 5 0 0 0 0 nations, also the number and amounts of Total 500,000 22,500 registered bonds issued under these two loans, 3. German Syndicate— as shown in the above-named official docu- (a) Treasury bills totaling 200 million marks (£ per cent commission^ ment : ' 1,764,000 kronen; 1 per mille German bill stamp tax= 235,200 kronen. Conversion into kronen made on the basis of legal First war loan. Second war loan. equivalent) 235,200 14,112 (b) Treasury bills totaling 180 million marks (§ per cent commission^ Number. Kronen. Number. Kronen. 1,323,000 kronen; 1 per mille German bill stamp tax= 211,680 kronen; conversion into kronen Coupon (bearer) made on the basis of legal bonds: equivalent) 211,680 10,584 100 kronen 245,386 24,358,600 200,371 20,037,100 (c) Treasury bills totaling 125 million 200 kronen 289,044 57,808,800 300,180 60,036,000 marks (| per cent commission= 1,000 kronen 209,906 209,906,000 239,408 239,408,000 918,750 kronen; 1 per mille Ger- 2,000 kronen 182,855 365, 710,000 218,583 437,166,000 man bill stamp tax= 147,000 10,000 kronen 74,230 742,300,000 87,738 877,380,000 kronen. Conversion into kro- 100,000 kronen.... 2,938 293,800,000 3,345 334,500,000 nen made on the basis of legal Registered bonds 3,370 506,683,500 2,929 719,794,700 equivalent) 147,000 7,350 Total 1,007,729 2,200,746,900 1,052,559 ! 2,688,321,800 Total 593,880 32,046 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

JANUARY 1,1917. FEDERAL RESERVE BULLETIN. 19 HUNGARY. period were those located in Dallas, New Or- Loans issued during the period 1914 to 1916. leans, Buffalo, Kansas City, Philadelphia, San Francisco, Cleveland, Pittsburgh, and [Source: Statesman's Yearbook, 1916 ed. Proceeds in millions of kronen.] Boston. First loan, issued in November, 1914, at 97k 6 per cent stock not Among the 100 largest banks there were redeemable till Nov. 1,1920 ." 1,170 Second loan, issued in May, 1915, 6 per cent stock not redeema- only 5 which did not show an increase. Three ble before 1921, issued at 98. and 5£ per cent stock not redeemable before 1925, issued at 91$ 1,120 of these banks showing reductions were lo- Third loan, issued in October, 1915, at 98, 6 per cent rente, not redeemable before May 1,1921 1,980 cated in New York and 2 in California. The Fourth loan, issued in May, 1916,6 per cent rente, not redeemable before Nov. 1,1921, issued at 97£ and 5$ per cent treasury bills, largest reduction shown by any one of these not redeemable before June 1,1926, issued at 91T%, about 1,800 5 banks was less than two and a quarter Total 6,070 million dollars. The largest percentage of increase was One Hundred Largest National Banks. shown by a bank in Texas, which increased over 33 per cent, or over $6,000,000. Interesting figures showing the distribution between States of the 100 largest national banks in the. United States were made Commercial Failures During November. public by the Comptroller of the Currency on December 22 and are given below. In common with other records, statistics of Formerly the 100 largest national banks in failures continue to make a gratifying exhibit, the United States were congested principally reflecting the general prosperity of the country in a comparatively few financial centers. and the increased promptness iri the settlement To-day the big banks are distributed through of financial obligations. Strictly commercial 22 States and in 33 cities, embracing every defaults, as distinguished from banking sussection of the country. pensions and personal embarrassments, num- The 100 national banks with the largest bered 1,251 during November, and the liabiliresources as shown by the call of November ties reported to R. G. Dun & Co. were $14,- 17, 1916, all have resources in excess of 104,621. These figures exceed the 1,240 in- $20,000,000, with one exception, the exception solvencies, involving $10,775,654 in the prebeing one of the Chicago banks. ceding month, but the number is the smallest Oklahoma, Alabama, Louisiana, Virginia, for any November since 1912, and it is neces- Washington, New Jersey, and Oregon each sary to go back to 1910 to find a lighter incontain 1 of the 100 largest banks; Texas, debtedness for the period. For the 11 months Nebraska, Maryland, Michigan, Indiana, and of the current year, failures show a numerical Wisconsin each contain 2 of these banks; reduction of 23 per cent and a contraction of Colorado has 3; Ohio, Minnesota, and Massa- over 36 per cent in amount as compared with chusetts each have 5; California and Illinois 1915, while the record in both respects reveals have 7 each; Missouri has 8; Pennsylvania has a substantial decrease from the mortality of 16; and New York State has 25. two years ago. Betterment in comparison Between September 12 and November 17, with a time of abnormal conditions obviously 1916, the resources of the 100 largest banks is to be expected, but the present returns apincreased $550,000,000, or nearly 9 per cent. pear particularly favorable when it is con- Outside of the central reserve cities the sidered that the possibilities of financial large banks which showed increases of as reverses are enhanced through the increased much as $5,000,000 each in deposits in this number of firms in business. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

20 FEDERAL BESEBYE BULLETIN. JANUARY 1, 1917. Detailed figures by Federal Reserve districts DISTRICT NO. 10. follow: Trustee, executor, administrator, and registrar of stocks and bonds: Tootle-Lemon National Bank, St. Joseph, Mo. Number of District. Liabilities. tailurcs. Trustee, executor, and administrator: First National Bank, Butte, Nebr. No. 1 145 $1,772,161 First National Bank, Muskogee, Okla. No.2 . 225 5,112,920 No.3... 81 828,863 No.4 79 559,256 DISTRICT NO. 11. No.5... 79 687,100 No.6...... 119 1,072,404 No. 7. 150 1,989,510 Trustee, executor, and administrator: No.8 58 330,795 American National Bank, Austin, Tex. No.9 43 324,232 No. 10... 46 325,794 No. 11 45 345,757 No. 12 181 755,829 New National Bank Charters. Total, 1916 1,251 14,104,621 1915 1,565 15,694,434 1914 1,815 25,489,498 1913 1,377 24,199,485 The Comptroller of the Currency reports the 1912.. 1,175 15,646,105 following increases and reductions in the number of national banks and the capital of na- Fiduciary Powers. tional banks during the period from November The applications of the following banks for 25 to December 22, 1916, inclusive: permission to act under section 11 (k) of the Banks. Federal Reserve Act have been approved since New charters issued to 5 With capital of $330,000 the*issue of the December Bulletin: Increase of capital approved for 2 With new capital of 40,000 DISTRICT NO. 1. Trustee, executor, administrator, and registrar of stocks Aggregate number of new charters and and bonds: banks increasing capital 7 Safety Fund National Bank, Fitchbuig, Mass. With aggregate of new capital authorized 370,000 Number of banks liquidating (other than DISTRICT No. 3. those consolidating with other national Trustee, executor, administrator, and registrar of stocks banks) 10 and bonds: Capital of same banks 1, 910, 000 Broad Street National Bank, Trenton, N. J. Number of banks reducing capital 1 Reduction of capital 100,000 DISTRICT NO. 4. Total number of banks going into liquida- Trustee, and registrar of stocks and bonds: tion or reducing capital (other than those First National Bank, Bucyrus, Ohio. consolidating with other national banks). 11 Aggregate capital reduction 2,010,000 DISTRICT No. 7. Trustee, executor, administrator, and registrar of stocks The foregoing statement shows the aggregate of and bonds: increased capital for the period of the banks First National Bank, Sheridan, Ind. embraced in statement was 370,000 Leavitt-Johnson National Bank, Waterloo, Iowa. Against this there was a reduction of capital Trustee, executor, and administrator: owing to liquidations (other than for con- First National Bank, Coon Rapids, Iowa. solidation with other national banks) and re- National Bank of Mattoon, Mattoon, 111. ductions of capital of 2,010,000 Net decrease 1, 640, 000 DISTRICT No. 9. In addition to the changes noted above, one bank, with Trustee, executor, and administrator: capital of $25,000, was placed in the hands of a receiver American National Bank, Spearfish, S. Dak. during this period. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

JAXITARY 1. 19.17. FEDERAL RESERVE BULLETIN. 21 Collaboration With the Federal Trade countants or become responsible for the man- Commission. ner in which they may perform their duties. The Federal Reserve Board, therefore, In the regular course of its work the Federal has under consideration some consistent basis Trade Commission has discovered a number of of cooperation with the Federal Trade Comfacts concerning business conditions in gen- mission in an effort to standardize the work eral, some of which have an important bear- of public accountants, by the recommendation ing upon the work of the Federal Reserve of certain forms of statements and certain Board. methods of examination, as hereinafter ex- First. It has been found that there is a plained in detail. widespread custom among the banks of the The Federal Trade Commission has received country, not only in small places but frequently cordial responses from business men in all in large cities, to grant considerable lines of parts of the county, and is greatly encourcredit without requiring statements of any de- aged in the prosecution of its labors by the scription from the borrower. feeling that bankers, manufacturers, and mer- Second. In innumerable instances in which chants will be glad to cooperate with them in statements of assets and liabilities have been their efforts to improve conditions affecting made, these statements are manifestly inaccu- credits in all parts of the country. It believes, rate, particularly in the case of manufacturers however, that a campaign of education is abwith respect to the present value of their plant solutely necessary, and that much time must and equipment, and in the case of wholesale elapse and much work be done before any merchants with respect to the actual market- widespread improvement can be expected. able value of goods on hand and the realizable There is unquestionably large room for imvalue of accounts receivable. provement, conditions having been discovered Third. It has developed that, even in the by the Federal Trade Commission with refcase of reports made by certified public ac- erence to credit information, particularly countants, the reported values of assets are along certain manufacturing lines, which it frequently misleading, because depreciations regards as positively startling. have not been properly allowed for, and no It is thoroughly realized that whatever plan statement is made in the report from which is attempted must take into consideration the the bank using it as a basis of credit can form conditions under which public accountants any correct idea of the value of the plant as a have been working in the past and are now going concern or its value as an asset in case working. The profession of the public acof the failure of the owner. countant in this country is comparatively It is not suggested by the Federal Trade young, and has, therefore, not reached that Commission that the Federal Reserve Board standard of professional ethics or degree of shall make any drastic changes in its policy refinement which it has attained in other with reference to the requirement of state- countries—England, for example. Competiments from borrowers or that the Federal Re- tion is keen, and public accountants, even with serve Board prescribe any standard form of the highest appreciation of the responsibilities statement. It is not proposed that any of the committed to them, have been faced with the Federal Reserve Banks shall be interfered with alternative of meeting conditions as they exist, in their efforts to bring about a uniformity in or letting some one else do the work. the statements of borrowers. Nor is it pro- To be more explicit, while many audits and posed that the Federal Reserve Board shall examinations are now being made solely for assume control over the activities of public ac- the benefit of the client whose business is being 73976—17 4 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

22 FEDERAL RESERVE BULLETIN. JANUARY 1, 1917. investigated, by far the larger number are ject to variation in individual cases as special made at the direct request or at the instigation circumstances may require. They must, of of and for the benefit of banks, and others who course, be designed to show (in a manner have been asked or expected to make loans on as uniform as possible) the real condition of the basis of the results of the examinations. the business, or as much as can be shown about The accountant is employed, paid, and in- the business, with clear and unmistakable indistructed by the person whose affairs are being cations of those facts which can not be ascerexamined. This does not mean that the aver- tained. age public accountant can be bought or in- Second. Certain standard methods of produced by any consideration to certify to a cedure on the part of the auditor or examiner statement which he knows to be untrue or are to be prescribed, with a view of making which he has reason to suspect. On the con- examinations as complete as possible and as trary, experience with the profession satisfies thorough as may be necessary. one that the average accountant is entirely Third. It is proposed that a registry of honest and usually competent. public accountants be established, and rules It is a fact, however, that under the circum- made governing the admission of accountants stances above described, because of competition to registry, and the withdrawal of permission and the employer's desire to reduce the expense to use the registry number in any case in which of examinations to the lowest possible point, the accountant to whom that number has been the custom has arisen of confining audits and assigned is guilty of negligence, fraud, or vioexaminations, with rare exceptions, to a single lation of the regulations. year's operations; and while the cautious ac- It is not intended that an accountant recountant will protect himself by a statement ceiving permission to use the registry number in his report showing the period covered by shall be required to perform all of his work in his examination and give figures with refer- accordance with established regulations, or to ence to stocks of merchandise on hand and use the number in connection with every reaccounts and bills receivable, with qualifica- port made by him of an audit or examination, tions which will indicate that he assumes no but it is intended that whenever he does affix responsibility for estimates and values given, his registry number it will be only with a yet the banker, not always an expert account- statement appended that the examination or ant, frequently overlooks the qualifications, audit in that particular case was made in and is misled by the statement. strict accordance with the regulations. The public accountant does not as a rule Under these circumstances an accountant make his statement in the form thus indicated would be entirely at liberty to make an exof his own choice. If he is an experienced and amination in whatever way he may consider competent accountant, he will gladly go to the necessary and cover whatever ground his embottom in every case, report facts as far as ployer may wish him to cover, or give in conthey can be ascertained, and state actual condi- nection with the work a certificate containing tions in unqualified and unmistakable terms any qualifications he may see fit to embody, but if he is at liberty to do so, which, as has been he can not affix his registry number unless the intimated, is seldom the case. examination or audit has complied in every The remedy suggested by the Federal Trade respect with requirements provided for in the Commission is briefly as follows: regulations. First. There shall be prescribed several dif- The Federal Trade Commission is now enferent standard forms of statements (one or gaged in compiling a set of regulations covermore for each particular line of business), ing the registration of accountants and the these forms to embody principles and be sub- conduct of audits and examinations. These it Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

M*t-*t>i I. IU17. FEDERAL RESERVE BULLETIN. 23 ptitpoM's to discuss with the National Society The Federal Reserve Board, for its. part, is **f Public, Accountants and later to submit to appreciative of the work done by the Federal ila Ki'drrnl Reserve Board for its considera- Trade Commission, and would be glad to con«»h. It will suggest to the Federal Reserve operate in securing the desired results. h* »n r»11 h a t the registry of public accountants be * flrrt^tl by the Federal Reserve Board rather ilifin by the Federal Trade Commission, on Assessment for Expenses of Board. iUv Uu'ory that this would be more natural and }t»n)»or in view of the Federal Reserve Board's Acting under the provisions of the Federal M| M it ion in supervising the character of com- Reserve Act, the Federal Reserve Board on trit'irial paper rediscounted by Federal Reserve December 5 voted an assessment of one-tenth Ilitiiktt for their member banks. of 1 per cent upon the capitalization of Federal l-iider this plan it would not be necessary Reserve Banks to cover estimated expenses of fur I he Federal Reserve Board to alter its the Board from January 1 to June 30, 1917. prwent policy with reference to statements. The assessment is based upon the capitaliza- Ji would not be necessary for the Board to in- tion of Federal Reserve Banks as of December «IHI upon audited statements to any greater 1, 1916, of $111,474,000. The rate of assessextent than it now does, nor would it be neces- ment will yield $111,474 and is slightly higher mwy for the Board to issue any formal order than that made for the last half of 1916, which giving preference to statements made in ac- was seventy-five one-thousands of 1 per cent. cordance with the regulations over those other- The assessment at the lower rate for the latter \s we made. The more important results would half of 1916 was made possible by a consider- «M)ine from a better appreciation of the whole able balance carried over. Kuhject and a gradual education of bankers as The resolution of the Board and the figin the kind of statements which they need. ures upon which the assessment is based fol- The suggestion that the Federal Reserve low: Hoard should undertake the registration of Whereas, under section 10 of the Act apaccountants is obviously one which will re- proved December 23, 1913, and known as the quire most careful study and consideration, Federal Reserve Act, the Federal Reserve. and it is quite possible that some better way Board is empowered to levy semiannual^ upon the Federal Reserve Banks in proportion to of handling the matter may. be discovered. their capital stock and surplus an assessment <>ne suggestion has been made that, inasmuch sufficient to pay; its estimated expenses, inas the main object of the plan is the protection cluding the salaries of its members, assistants, of national and State banks, the best method attorneys, experts, and employees for the half <»f handling it would be through the bankers' year succeeding the levying of such assessment, together with any deficit carried forassociations of the different States. This will ward from the preceding half year; and certainly be considered and thoroughly can- Whereas it appears from estimates subvassed. Whatever method is adopted it will mitted and considered that it is necessary that undoubtedly demand the heartiest cooperation a fund equal to one-tenth of 1 per cent of the on the part of bankers, merchants, manu- capital stock of the Federal Reserve Banks be created for the purposes hereinbefore defacturers, and accountants. scribed, exclusive of the cost of engraving and The privilege of registration, in order to be printing Federal Reserve notes: Now, thereof value, must be jealously guarded, and the lore, administration of regulations in respect to Be it resolved, That pursuant to the aupenalties for failure to observe the rules laid thority vested in it by law, the Federal Reserve Board hereby levies an assessment upon the down will have to be most carefully considseveral Federal Reserve Banks of an amount ered in order to secure proper conditions withequal to one-tenth of 1 per cent of the total out injustice to those concerned. capital stock of such banks, and the fiscal Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

24 FEDERAL RESERVE BULLETIN. JANUARY 1,1917 agent of the Board is hereby authorized to Estimated requirements, January to June. collect from said banks such assessment and inclusive, 1917 $114,956.34 Estimated unencumbered balance, Jan. execute, in the name of this Board, a receipt 1, 1917 10,099. 36 for payment made. Such assessment will be collected in two installments of one-half each; 104, 856.98 the first installment to be paid on January 1, Total capitalization Federal Reserve 1917, and the second half on March 1, 1917. Banks, Dec. ], 1916 Ill, 474,000.00 Rate of assessment to produce Sill,474 Estimate for January, 1917, assessment. (one-tenth of 1 per cent) . 001 SHERMAN ALLEN, Fiscal Agent. ' Average monthly encumbrance for period Approved: Committee on organization, expenditures, July 1, 1916, to Dec. 31, 1916 $18,008.31 Estimated monthly reauixementB, Janu- and staff. ary to June, inclusive, 1917 '. 19,159.39 F. A. DELANO. C. S. HAMLIN. Estimated monthly increase ], 151.08 A. C. MILLER. DECEMBER 5, 1916. Estimate for January assessment, 1917. Commitments. ! Estimated i average Monthly monthly July 1 to d average". m r e o n q t u , ir J e a - n. \ Decker, Total. 1 to June 1916. 30,1917. Personal services: Board and its clerks $36,925.02 $7,375.04 344,300.06 37,383.34 $7,375.04 Secretary's office ! 11,048.33 2,595.01 13,643.34 2,273.89 2,595.01 Counsel's office : 10,333.32 2,066.66 12,399.98 2,066.66 2,066.66 Division of Audit and Examination 6,691.67 1,338.34 8,030.01 1,338.33 1,438.34 Division of Reports and Statistics ! 4,454.16 i; 030.00 5,484.16 914.03 1,030.00 Division of Issue -. ; 3,454.34 648.34 4,102.68 683.78 7118.34 Messengers •, 1,760.00 365.00 | 2,125.00 354.17 365.00 Charwomen ; 296.00 60.00 ! 356.00 59.33 60.00 Total 74,962.84 15,478.39; 90,441.23 | 15,073.53 15,648.39 Nonpersonal services: i Tran B s o p a o r r d ta a ti n o d n i a ts n d cl e s r u k b s s istence of persons— : 600.63 j | 100.00 760.63 126.77 100.00 Secretary's office 25.05 \ 25.05 4.17 10.00 Division of Audit and Examination 2,719.88 i 300.00 3,019.88 503.33 625.00 Division of Reports and Statistics : 19.20 | 19.20 3.20 < M Co e u ss n e s n e g l' e s r o s ff ( i c c a e r faro) : i 15.00 j ! 15.00 2.50 1 3 0 . . 0 0 0 0 Communication service: Telephone 301.58 60.00 j 361.58 60.26 60.00 Telegraph 1,743.72 300.00 ! 2,043.72 340.62 333.00 Postage 20.00 20.00 3.33 5.00 Printing, binding, etc 5,416.83 2,700.00 I 8,116.83 1,352.80 1,250.00 Contract repairs 40.34 40.34 6.72 10.00 Electricitv (light and power) 150.00 30.00 ; 180.00 30.00 30.00 Steam (heat) : 15.00 15.00 30.00 5.00 15.00 . Other (nonpersonal services) 173.98 , 10.00 ; 183.98 30.66 50.00 Supplies: | i Stationery -569.94 ; 150.00 ! 719.94 119.99 125.00 Periodicals , 145.90 I ! 145.90 ! 24.32 20.00 Other 109.71 ; 25.00 134.71 j 22.45 40.00 Equipment: j Furniture and office equipment 1.480.75 ! 200.00 1,680.75 ' 280.13 150.00 Books 111.15 j 111.15 18.53 25.00 Contingencies ; ! 650.00 Grand total 88,681.50 j 19,368.39 • 108,049.89 18,008.31 19,159.39 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

JANUARY 1, 1917. FEDERAL RESERVE BULLETIN. 25 Gold Settlement Fund. Reserve Banks and the Federal Reserve Agents, acting in conjunction with a representative of Operations of the gold settlement fund durthe Federal Reserve Board. ing the period November 24 to December 21, inclusive, resulted in the settlement of obliga- Amount of clearings and transferSj Federal Reserve Banks, tions amounting to $839,527,000, with changes from Nov. U, 1916, to Dec. 21, 1916. in ownership of gold of 2.37 per cent. The Federal Reserve Banks of New York, Cleve- [In thousands of dollars.] land, Richmond, St. Louis, and Dallas were Total debtors during the period, the amount of gold clearings. Balances. Transfers. movement from New York to other banks Settlement of— being $15,154,000, approximately two-thirds December 1,1916 205,304 15,265 2,790 December 7,1910 185,488 13,283 11,217 of which was in the week ending December 1. December 14,1910 198,938 9,826 6,870 December 21,1910 222,160 11,877 6,700 Since that date, the movement has diminished, Total. 811,950 ! 50,251 27,577 and for the week ending December 21 there Previously reported | 4,478,708 422,451 126,368 was a return flow of $2,526,000. Total since Jan. 1, 1916 j 5,290,718 472,702 I 153,945 Total transfers, 1916 | 153,945 An audit of the gold settlement fund and the Total for 1915, including transfers i 1,052,649 Federal Reserve Agents' fund was made on Total clearings and transfers, May 20, ! December 11 by representatives of the Federal 1915, to Dec. 21,1916 , 6,497,312 j. Changes in ownership of gold. [In thousands of dollars.] Total changes from To Nov. 23,1916. j From Nov. 24,1916, to Dec. 21,1916, inclusive.* May 20, 1915, to Pec. 21,1916.2 Federal Reserve Bank of— Balance to Decrease.! Increase. 2 n c 3 e r t , e 1 d 9 d i 1 e t 6 p N , o p o s l i v u ts . s D B e 1 a c 9 l . 1 a 6 n 2 . c 1 e , Decrease. Increase. Decrease. Increase, of gold since that date. Boston 21,850 18,606 526 22,376 New York 291,420 I 32,580 17,426 15,154 "306," 574 "| Philadelphia... 55,437 12,607 15,105 2,498 57,935 Cleveland 21.428 19,498 17,434 2,064 19,364 Richmond 33,829 22,029 20,181 1,848 31,981 Atlanta 26,307 3,007 5,939 2,932 29,239 Chicago 5,140 I 29,170 32,428 3,258 1,882 St. Louis 12,278 3,078 3,149 ' 71 12,349 Minneapolis... 12,488 6,562 426 12,062 Kansas City... 37, 797 15,954. 18,064. 2,110 39', 907 Dallas 40,705 14,007. 13,573. *434" 40,271 San Francisco. 34,441 1,561 10,092 " 8," 53*1' 42,972 "I Total. 296,560 ! 296,560 j 178.560 I 178,560 19,926 I 19,926 308,456 j 308,456 1 Changes in ownership of gold during period Nov. 24,1916, to Dec. 21,1916, equal 2.37 per cent of obligations settled. 2 Total changes in ownership of gold equal 4.75 per cent of total obligations settled. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

26 FEDERAL RESERVE BULLETIN. JANUARY T, 1917. Gold settlement fund—Summary of transactions from Dec. 1, 1916, to Dec. 21, 1916, inclusive. [In thousands of dollars.) Balance Gold. Transfers. Settlement of Dec. 1,1916. D 1 e 9 c 1 . 6, 1, Cha s n h g ip es o i f n g o o ld w . ner- Federal Reserve Bank last state- balance of— ment, in fund No 19 v 1 . 6 2 . 3, d W ra i w th n - . ; D i c te p d o . s- Debit. Credit. de N b e it t s. 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 i r ng. Increase. Boston 18,080 300 2,646 17,601 14,955 15,734 2,346 New York..., 7,580 10,000 7,919 44,787 36,868 7,171 10,409 Philadelphia.. 15,537 1,000 . 27,805 29,106 1,301 15,838 1,301 Cleveland 19,898 100 !. 14,053 17,125 3,072 22,870 3; 072 Bichmond 23,169 1,180 i. 14,834 16,463 1,629 23,618 1,629 Atlanta 5,767 760 ! 500 7,396 10,221 2,825 8,332 2,825 Chicago 30,230 1,000:. 1,367 25,391 24,024 27,863 1,367 St. Louis 4,778 19,277 22,235 2,958 7,736 Minneapolis.. 8,988 2,000 .. 6,287 8,496 2,209 9,197 2,209 Kansas City.. 19,464.5 1,960 j. 15,003 15,430 427 17,931. 427 Dallas 14,507.5 400 I. 8,318 9,162 844 14,951. 844 San Francisco 7,981 2,800 |. 300 2,490 3,333 4,612 1,279 4,038 1,143 Total... 175,980 11,200 j 10,500 2,790 2,790 15,265 205,364 205,364 I 15,265 175,280 15,265 15,265 Gold. Transfers. Settlement of Dec. 7,1916. Dec. 7, Changes in owner- Balance 1916, ship of gold. Federal Reserve Bank last state- balance of— • D m 1 e 9 e e 1 n . 6 t 1 . , . d W ra i w th n - . D i e te p d o . s- Debit. Credit. de N b e it t s. d T e o b t i a ts l . c T re o d t i a ts l. . cr N ed e i t ts, c i l n e a a f f t r u e i n n r d g. Decrease. Increase. Boston 15,734 347 3,301 14,660 11,359 12,780 3,229 New York 71177.11 15,000 9,020 1,000 33,914 40,504 6,590 20,741 1,430 Philadelphia ,838 1,020 850 "3,"660" 33,597 29;937 10,308 4,510 A C R l i t e c la v h n e m l t a a o n n d d .- 2 2 1 2 3 5 , , , 3 8 6 3 7 1 2 0 8 9 5 1 0 0 0 0 0 0 I j I 170 1,000 850 3,299 1 1 6 3 3 , ) . 8 8 6 8 6 9 4 8 5 1 1 0 4 7 , , , 5 5 3 6 7 0 9 4 2 8 4 7 1 9 8 2 23 7 0 , , ,3 8 1 2 5 6 1 0 7 2,4 1 4 2 9 1 i ! 418 Chicago 8,863 21,341 24,522 3,181 31,044 3,181 St. Louis * 277,736 1,500 j. 19,748 19,822 74 310 74 Minneapolis 9,197 5,128 5,322 194 194 Kansas City 17,931.5 900 100 12,404 13,312 j 938 17, i.5 938 Dallas 14,951.5 200 80 247 6,571 7,580 I 1,009 15,593.5 937 San Francisco 4,038 2,000 9,020 3,023 3,678 655 I 035 5,997 Total. 175,280 7,120 15.250 11,217 11,217 13,283 185,488 185,488 13,283 183,410 11,739 11,739 Balance Gold. Transfers. Settlement of Dec. 14,1916. De 19 c. 1 6 1 , 4, I ! Cha s n h g ip es o i f n g o o w ld n . er- Fed B e a ra n l k R o e f— serve stat l e a m st ent, ! b in a l f a u n n c d e D- 1 ° 9 9 1 ~ 6. 7» j d W ra i w th n - . 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 12,780 17,296 1,510 590 1,810 New York 20,741 38,899 900 5,841 Philadelphia 10,308 29,074 ;960 488 Cleveland 20,321 12,177 18,708 1,513 Richmond 23,167 16,084 22,954 413 Atlanta •. 7,850 9,407 857 7,407 957 Chicago 31,044 26,735 6,715 30,879 6,715 St. Louis 6,310 21,910 4,248 1,862 Minneapolis 9,391 4,877 8,494 897 Kansas City 17,869.5 15,632 744 18,513.5 644 Dallas 15,593.5 6,237 663.5 950 San Francisco 8,035 610 973 1,8 Total I 183,410 5,750 8,938 i 9,826 178,290 11,964 11,964 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

JANUARY 1,1917. FEDERAL BESEBVE BULLETIN. 27 Gold settlement fund—Summary of transactions from Dec. 1, 1916, to Dec. 21, 1916, inclusive—Continued. Balance Gold. Transfers. Settlement of Dec. 21,1916. De 1 c 9 . 1 6, 21, Cha s n h g ip e s o i f n g o o w ld n . er- Federal Reserve last balance Bank of— st D a e t 1 c e 9 . 1 m 6. 1 e 4 n , t, d W ra i w th n - . D it e e 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. c i l n e a a f f t r u e i n n r d g. Decrease. Increase. Boston 14,590 300 15,903 19,619 3,716 18,606 4.016 New York 14,900 2,300 4,000 45,675 46,501 826 17,426 2^526 Philadelphia 8,960 50 33,564 39,759 6,195 15,105 i 6,195 Cleveland 18,708 100 1,174 15,233 14,059 17,434 1 174 ' .... Richmond 22,954 170 1,000 1,943 17,734 15,791 20,181 2,943 Atlanta 7,407 200* 1,268 9,165 7,897 5,939 1,268 Chicago .... 36,879 500 1,320 2,000 3,271 30,143 26,872 32,428 5,271 St. Louis 4,248 100 1,199 23,917 22,718 3,149 1,099 Minneapolis... 8,494 1,932 5,963 4,031 6,562 1,932 Kansas City 18,513.5 650 13,923 14,124 201 18,064.5 201 Dallas 14 663.5 1,090 7,666 6,576 13,573.5 1,090 San Francisco 7,973 280 1,400 2,300 3,274 4,213 939 10,092 1,839 Total. 178,290 # 1,500 1,770 6,700 6,700 11,877 222,160 222,160 11,877 178,560 14,777 14,777 Federal Reserve Agents1 fund—Summary of transactions, Nov. 24, 1916, to Dec. 21, 1916, inclusive. [In thousands of dollars. 1 Week ending Dec. 1, Week ending Dec. 7, Week ending Dec. 14, Week ending Dec. 21, Nov. 1916. 1916. 1916? 1916. 23, Federal Reserve agent at— 1916, a b n a c l- e. d W ra i w th n - . D it e e p d o . s- a B n a c l- e. d W ra i w th n - . D it e e p d o . s- a B n a c l- e. d W ra i w th n - . D i e te p d o . s- a B n a c l- e. d W ra i w th n - . D i e te p d o . s- a B n a c l- e. Philadelphia 8,700 200 1,000 9,500 1,020 10,520 360 1,020 11,180 11,180 Richmond 14,600 500 900 15,000 500 15,500 250 15,750 15,750 Atlanta 14,210 760 14,970 900 15,870 900 16,770 1,000 200 15,970 Chicago 2,950 1,000 3,950 3,950 880 4,830 320 500 5,010 St. Louis . .. 5,310 5,310 ""i,*566" 6,810 ioo" 6,710 6,710 Minneapolis 4,250 2,000 6,250 6,250 6,250 6,250 Kansas City 12,900 """"566' 960 13,360 ""906 14,260 14,260 14,260 Dallas 11,430 400 11,830 100 200 11,930 11,930 11,930 San Francisco . . 10,900 snn 11,700 1,000 12,700 1,900 14,600 280 14,320 Total 85,250 1,200 7,820 91,870 100 6,020 97,790 460 4,950 102,280 1,600 700 101,380 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

28 FEDERAL RESERVE BULLETIN. JANUARY 1, 1917. INFORMAL RULINGS OF THE BOARD. Below arc reproduced letters sent out from Group Insurance. time to time over the signatures of the officers I acknowledge receipt of your letter of the or members of the Federal Reserve Board 20th instant, which has been brought to the attention of the executive committee of the which, contain information believed to be of Board. general interest to Federal Reserve Banks and There is no objection to the taking out of member banks of the system: group insurance covering the employees of your Federal Reserve Bank along the lines Purchase of Acceptances. suggested in your letter, which plan we under- Receipt is acknowledged of your letter of the stand is already effective in at least two of the 21st instant inclosing statement of condition of Federal Reserve Banks. a bank in New Orleans, which institution desires NOVEMBER 23, 1916, to offer its acceptances to the branch bank at New Orleans. The Federal Reserve Board has no objection Differentia! as to Acceptances. to your bank's authorizing the purchase of the acceptances of this institution by the branch The Board has been considering for several bank at New Orleans, but would like to be days the question whether there should be any advised, as a matter of information, as to the differential in favor of acceptances of member character of the acceptances to be offered— banks and has reached the conclusion that will they be against imports or exports, or will while a very decided differential may be inthey be against domestic transactions, or both ? advisable, there is no objection to a moderate differential, say one-fourth of 1 per cent, to NOVEMBER 23, 1916. apply between member-bank acceptances and the acceptances of large nonmember institutions well known throughout the country and Purchase of Bank's Own Acceptances. whose acceptances necessarily have a broad The attention of the Board has been called market. There will be no inconsistency, of to the fact that in some cases member banks, course, in applying a higher differential to the which are authorized under the amendment to acceptances of smaller and less widely known the Federal Reserve Act of September 7, 1916, institutions whose offerings would have a to accept against domestic transactions to the restricted market only. As the Board has extent of 50 per cent of their capital and sur- already approved a rate of from 2 to 4 per cent plus, have been extending credits in this way for bankers7 acceptances, your directors of and have been purchasing their own accept- course have a liberal margin of discretion in ances, under the impression that by this means the matter. they could extend credits to a single borrower DECEMBER 4, 1916. up to one-half of their capital and surplus instead of being restricted to 10 per cent as provided by section 5200, R. S. This question Acceptances. has been carefully considered by counsel, and I wish to acknowledge receipt of your letter the Board has ruled that a member bank's of December 5, 1916. You state that an acown acceptances purchased by it, must be ceptance house which has purchased an accepttreated as loans and as such are subject to the ance based on the importation or exportation 10 per cent limitation. The opinion of counsel of goods desires to reimburse itself by drawwill be published in the December issue of the ing a bill upon a national bank, pledging as Federal Reserve Bulletin, and in the mean- collateral security for the bill the acceptance time you are requested to correct any mis- which was based upon the transaction involvapprehensions that your member banks may ing the importation or exportation of goods. entertain on this subject. You ask whether a national bank would be • NOVEMBER 23, 1916. authorized to accept a bill of this character Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

JANUARY 1,1917. FEDERAL RESERVE BULLETIN. 29 under the provisions of section 13 of the Fed- against such a shipment would be eligible for eral Reserve Act. purchase by Federal Reserve Banks as based That section authorizes national banks to upon or involving the exportation of goods. accept drafts or bills growing out of transac- DECEMBER 4, 1916. tions involving the importation or exportation of goods and, though the Board has ruled that it is not essential that the specific goods Bills Drawn Against Coin. be identified or even in existence at the time In reference to your letter of December 7, of the acceptance in order to make it legal, 1916, submitting certain questions relating to nevertheless that acceptance must grow out the eligibility of bills of exchange drawn to of a specific transaction which itself involves finance shipments of gold from this country, the importation or exportation of goods. I wish to state that the Federal Reserve Board In the case presented in your letter the acis of the opinion that gold coin is " goods' ceptance house has purchased with its own within the meaning of section 13 of the Federal funds an acceptance based on the importation Reserve Act, and that, therefore, a bill of or exportation of goods. That acceptance j exchange drawn to finance a shipment of gold necessarily must have grown out of a transac- | coin from this country either to Europe or to tion involving the importation or exportation Canada, as suggested in your letter, is eligible of goods, but it is the opinion of the Board that for purchase by a Federal Reserve Bank if there is no direct or logical relation between otherwise in conformity with the provisions of that transaction and the subsequent one in law and the regulations of the Federal Reserve which the purchaser of that acceptance ar- Board. ranges before its maturity to reimburse himself by drawing a new bill secured by the first DECEMBER 12, 1916. acceptance. The new bill can not properly be said to grow out of the original export transaction in the sense contemplated by the Purchase of Warrants from Member Banks. Act. If that was so, it would be possible to I received your letter of the 11th instant have two or even more acceptances drawn for referring to the purchase by your bank of the same amount and existing at the same $25,000 of notes of a member bank. time, purporting to finance the same export The fact that paragraph VII of Regulation E, transaction. It is obvious that the law did | series of 1916, authorizes any Federal Reserve not contemplate pyramiding acceptance credits | Bank to purchase warrants which comply with in that manner. only Paragraphs I and III of Regulation E, The Board believes, therefore, that no na- from any of its members, provided that they tional bank can legally accept a draft drawn are indorsed by the member bank and do not under the circumstances set forth in your exceed 10 per cent of its capital and surplus, letter, first, because it is not an acceptance does not of itself prohibit a Federal Reserve growing out of a transaction involving the Bank from purchasing warrants from a member importation or exportation of goods, and secbank in excess of that 10 per cent limit if they ond, because it is not an acceptance of the comply with all the other provisions of Regucharacter authorized by the amendment of lation E. In other words, Paragraph VII was September 7, 1916. It is not drawn by a bank intended to extend the powers of Federal or banker located in a foreign country, nor does Reserve Banks so as to authorize them to purit grow out of a transaction involving the chase through a member bank warrants which domestic shipment or storage of goods. could not properly be purchased in the open DECEMBER 8, 1916. market under the other paragraphs of Regulation E. It occurs to me, therefore, that if the war- Acceptances Against Bullion. rants in question comply with those other provisions of Regulation E, there is, of course, no The Board has considered your letter of reason why you should not take them, even November 29 with reference to shipment of though offered by a member bank. gold bars to Peru, and has reached the conclusion that gold bars may be properly con- If this issue of $25,000 of notes, together with sidered as goods, and that accordingly 60-day any other warrants of that county which you may hold, should exceed 25 per cent of the total bills when accepted by banks and bankers 73976—17 5 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

30 FEDERAL RESERVE BULLETIN". JANUARY 1,1917. amount of eligible warrants issued by that mu- As to your third question relating to the acnicipality, the approval of the Federal Reserve ceptance of a private banking house made for Board would be necessary, under the provisions a bag company, stating in the body of the of Paragraph II. In order to avoid any delay, draft that it is for burlap from Calcutta stored therefore, the Board has directed me to advise on the docks, I should say that if the credit you that it gives its approval for the purchase were granted before the importation took oi these warrants, provided the other provi- place, there would be no objection to continusions of'Regulation E are complied with. ing or renewing the acceptance while the goods are on the docks. If it is a new transaction en- DECEMBER 13, 1916. tered into after the importation, as such, had been completed, it would be a domestic transaction, and in that case it would be a question Compensation of Member Bank Officers. whether burlap is to be considered "readily Your letter of December 5, asking for a con- marketable goods"—in which case the acstruction of that part of section 22 of the Fed- ceptor must be secured by warehouse receipts eral Reserve Act which limits the powers of or other documents. directors, officers, and employees of member You ask me how far you should satisfy yourbanks to accept fees, commissions, etc., has selves as to the fact of whether or not the been received. acceptor has been secured by such documents. I am inclosing herewith a copy of an opinion As to that, you must use your own judgment. filed with the Federal Reserve Board by its As I have written you frequently, we do not counsel, together with a memorandum at- want to be too technical, but we must be tached thereto, which is self-explanatory. certain that the law is not being evaded, and I The Federal Reserve Board has consistently think you ought to be careful to impress upon maintained the position that it should not the acceptor that the rules must be observed make rulings oil specific or concrete cases aris- and that from time to time you may have to ing under this section of the Federal Reserve inquire as to whether this is being done. Gen- Act, because of the fact that, it being a penal erally speaking, I should say that if you are statute, no ruling by the Board would afford dealing with a private firm that you are trusting any protection to a person subsequently in- and that from time to time must come to you dicted for a violation of its provisions. and report to you about its financial condition, you should, be in a position to find out for DECEMBER 7, 1916. yourself what the methods of the firm are in the acceptance business and how far it would Acceptances and Security Therefor. be necessary for. you to make further inquiries and investigations to be certain of your ground. I have your letter of December 13, in reply DECEMBER 15, 1916. to which let me say that there can not be any objection to permitting the mills to substitute other warehouse receipts for cotton receipts during the life of the acceptance. Fiduciary Powers. The second question, whether receipts must In the October, 1916, Bulletin, the Board be registered warehouse receipts or receipts of printed a list of those States in which it has warehouses belonging to the mills receiving the determined, upon advice of counsel, that credit, I have to refer you to our letter of national banks may properly exercise, in Special Instructions No. 2, 1916, of which I whole or in part, the fiduciary powers authorinclose a copy, in which you will find that we ized by section 11 (k). Through an oversight, say under "f": "In purchasing or discounting- the State of New York was omitted. Though bankers' acceptances or other bills which are national banks have not authority under the secured by warehouse receipts, etc., the Fed- laws of that State to act as trustee, executor, oral Reserve Banks should make sure that the or administrator, they may properly act as receipt is issued by a warehouse which is inde- registrar of stocks and bonds, if authorized to pendent of the borrower." do so by the Federal Reserve Board. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

JANUARY 1, 1917. FEDERAL EESEEVE BULLETIN. 31 LAW DEPARTMENT. The following opinions of counsel have been drawee for acceptance, it would become due authorized for publication by the Board since and payable at once and demand for payment the last edition of the Bulletin: should immediately be made. If, therefore, a sight bill is actually accepted and circulates Demand and Sight Bills. after acceptance in the discount market, it Demand and sight bills of exchange must be presented for payment by the holder within a reasonable time. would, in effect, be nothing more than a promis- Demand and sight bills become due and payable on the sory note of the acceptor because the drawer date on which they are presented for acceptance. and indorsers would be released by a failure to If a member bank holds demand and sight drafts for demand payment when due; that*is, when first more than a reasonable time after acceptance, they must seen by the acceptor. be classed as overdue paper and considered in substance as promissory notes of the acceptor subject to the limita- It may be argued that the terms of a demand tions imposed by section 5200. bill differ from those of a bill drawn at sight, since the holder of the bill payable on demand NOVEMBER 28, 1916. SIR: The attached correspondence raises the must not only present it to the drawee but must question of the status of demand and sight bills actually demand payment in order to comply of exchange which have been accepted by the with its terms. It is conceivable, therefore, drawee and which are purchased or discounted that a demand bill might be accepted before by a national bank. it is presented for payment. Such bills, how- The determination of this question neces- ever, must be presented for payment within a sarily involves a consideration of the distinc- reasonable time, and the courts might very tion between presentation for acceptance and properly take the view that a demand bill prepresentation for payment. The ordinary time sented for acceptance and held is not presented bill, for example, a bill drawn payable 60 days for payment within a reasonable time, since the after sight, must be presented to the drawer for payment might have been demanded at the time acceptance within a reasonable time. What is of acceptance and the holder's failure to avail a reasonable time depends upon the circum- himself of this opportunity would constitute a stances in each case. After acceptance such a negligent act which would release the indorsers. bill becomes payable 60 days after the date on In the case of Kampman v. Williams et al. which it is accepted, and, of course, must be (70 Texas 568), a demand bill was accepted on classed as overdue paper if unpaid after the 60 June 23 and was not presented for payment days expire. In order to have recourse against until December 5. The court held that even the drawer and indorsers it is essential that a though the bill was payable on demand it beholder should present the bill in such case to came due and payable on June 23, the date on the acceptor for payment on the date of which it was accepted, or as soon thereafter maturity; that is, 60 days after acceptance. as demand could reasonably have been made. In the case of sight bills there is no fixed date In support of this position the court cited specified in the bill on which payment must be Daniel on negotiable Instruments (542, sec. made, but there is an obligation on the holder 605) and Cook v. Cook (19 Texas 437). On to present such bills for payment within a the authority of this case it would seem that reasonable time. Sight bills can not be pre- demand bills as well as sight bills become due sented for acceptance as distinguished from and payable on the date on which they are presentation for payment, because as the term presented for acceptance and that if payment "sight" implies, the order of the drawer is to is not made on the date of acceptance in the the drawee to pay the amount specified in the case of a demand bill it must be made within bill when presented to the drawee; that is, as a reasonable time thereafter. soon as seen by him. It is obvious, therefore, It is the opinion of this office, therefore, that that if a sight bill should be presented to the sight and demand bills become due and payable Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

32 FEDEBAL RESERVE BULLETIN. JANUARY 1,1917. as soon as they are accepted, and if held by grounds of general policy for the Board to the bank after acceptance for more than a determine. The purpose of the regulation is reasonable time they must be classed as over- to insure sufficient funds with which to pay the due paper and must be considered, in sub- warrants at maturity. It is respectfully sugstance, as promissory notes of the acceptor gested, therefore, that in any case where expewhich should be included within the limitations rience has demonstrated that the due date proimposed by section 5200; since the failure of the duces sufficient taxes to provide for such payholder to present for payment within a reason- ment at maturity, the Board may properly rule able time releases the indorsers and leaves the that the warrants may be purchased by Federal bank recourse only against the acceptor. Reserve Banks even though such warrants Respectfully, mature before the penalty date. M. C. ELLIOTT, Counsel. Respectfully, To Hon. JOHN SKELTON WILLIAMS, M. C. ELLIOTT, Counsel. Comptroller of the Currency. To Hon. W. P. G. HARDING, Governor Federal Eeserve Board. Eligibility of Warrants. The Federal Reserve Board may, under the provisions Litigation Involving Constitutionality of Section 11 (k). of Regulation E, series of 1916, authorize Federal Reserve Banks to purchase warrants which are issued in anticipa- The case of Grant Fellows, attorney general tion of the collection of taxes and which mature after the of Michigan, ex rel. the Union Trust Company date on which such taxes are due but before the penaltyet al. v. The First National Bank of Bay City, attaches for their nonpayment, if experience has demonstrated that the due date produces sufficient taxes to pay Mich., was instituted in the Supreme Court of the warrants at maturity. the State of Michigan more than a year ago. DECEMBER 4, 1916. The proceedings were in the nature of quo Regulation E, series of 1916, provides that warranto and were brought by the attorney Federal Reserve Banks may purchase warrants general of Michigan at the relation of the trust which are issued by a municipality in anticipa- companies of Michigan to enjoin the First Nation of the collection of taxes "which are due tional Bank of Bay City from acting as trustee, and payable on or before the date of maturity executor, administrator, and registrar of stocks of such warrants; but the Federal Reserve and bonds under the permit granted to it by Board may waive this condition in specific the Federal Reserve Board as authorized by cases. * * * Taxes shall be considered as section ll(k) of the Federal Reserve Act. due and payable on the last day on which they With the permission of the court, the Federal may be paid without penalty." Reserve Board, by counsel, appeared as amicus The law requires merely that the warrants be curisB, filed a written brief, and argued the case issued "in anticipation of the collection of orally. taxes/' and the fact that the penalty for the On September 26, 1916, the Supreme Court failure to pay taxes does not attach until after of the State of Michigan filed an opinion holdthe date of maturity of the warrants is imma- ing that though the exercise by a national bank terial under the terms of the law itself. The of the powers specified in section ll(k) would restriction that the taxes must be due and pay- not be in contravention of the laws of the State able before the date of maturity of the warrants of Michigan, nevertheless, Congress in granting is one merely of regulation and not of law. The to national banks the right to act as trustee, Board, realizing that this restriction might executor, and administrator exceeded its conbring about hardships in certain cases, inserted stitutional powers and that section ll(k), therein its amended regulation on the purchase of fore, is unconstitutional and void. warrants the proviso that it might waive this A writ of error was granted to the Supreme condition in specific cases. Whether or not it Court of the United States and, on motion to should be waived in the case in hand is one advance, the case has been assigned for hearing which is a question on its merits as well as on by that court on February 26, 1917. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

JANUARY 1,1917. FEDERAL RESERVE BULLETIN. 33 SUMMARY OF BUSINESS CONDITIONS DEC. 23, 1916. District No. 1- District No. 2— District No. 3— District No. 4— District No. 5— District No. 6— Boston. Now York. Philadelphia. Cleveland. Richmond. Atlanta. General business... Excellent, b u t Retail holiday Very good. Excellent , Highly satisfactory. Excellent. signs of hesita- trade larger tion. than ever before. Crops: Condition. Good. Normal Yield below normal; Winter crops fair. prices high. Outlook. Good. Satisfactory , Record preparations anticipated. Industries of the Busy. Sustained activ- Very good, but Engaged to capacity. Prosperous Operating full cadistrict. ity. hampered by la- pacity. bor and car shortage. Construction, Active Fairly busy Increasing Recession over 30 Building much Considerable imbuilding and days ago. above average for provement. engineering. season. Foreign trade Exports decrease; Recent weekly to- Exports for No- Exports increased imports increase. tal slightly low- vember 186 per 100 per cent over er than a year cent more than last year. same month last year, and 58 per cent more than October, 1916. Bank clearings Increase. Large increase Increasing Increasing 27 per cent increase Increasing. over last year. Money rates Increase over last Now on moderate Rates advanced Firmer 4 to 6 per cent; de- Slight increase in month. level and firm in early part of mand somewhat some money cenafter severe month; no ma- improved. ters. strain in call terial reduction money for sevor- since. | al weeks. Railroad, post- Increase ,| Increasing Railroad net earn- Increase for year; Still show increases.. Increasing. office, arid other ings decreasing; docroaso in * Noreceipts. post-office re- vember against ceipts increas- October. ing. Labor conditions.. Well employed Well employed, Good labor scarce, Fully employod In demand at full Fair. wages high. and wages ad- wages. vancing. Outlook.. Satisfactory i Uncertain Good....' Quite favorable Promising Good. Remarks., I Continued activ- Christmas savings Inadequate trans- Jobbing, retail, and ! ity in trade and club disburse- portation facili- general business at I industry a n d ments in district ties and shortage high water. i satisfactory col- this year were of fuel curtailing lections. S9,39o"844. output. District No. 7— District No. 8— District No. 9— District No. 10— District No. 11— District No. 12— Chicago. St. Louis. Minneapolis. Kansas City. Dallas. San Francisco. General business... Large volume still Very active Good Excellent. Very good.. Active. maintained. Crops: Condition Satisfactory Satisfactory Not as promising as Winter crops in Practically all harat this time last good condition. vested except cityear. rus fruit. Outlook Encouraging Good.. Industries of the Working to ca- Exception all 3- Active Continue at capac- Active. Shipbuilding and district. pacity. busy. . ity. mining especially active; lumbering improving. Construction, Fairlv active Moderate ; Above normal Normal Increase. building^ and engineering. j Foreign trade -. | Less active Normal Increasing. Bank clearings Increase Increase Slight decrease | Increase Increase over No- Increase. vember last year. Money rates About same., Easy and un- Steady Indication of hard- Easy Tendency to changed. ! ening. harden. Railroad, post Increasing... Perceptible in- Increasing ! Increase Heavier than 1915... Increasing. office, and other crease. receipts. Labor conditions . Satisfactory. People well em- ! Good Satisfactory. No unemployment Fairly settled. ployed at good I except in building wages. I trades. Outlook.. Favorable... Promising j G ood Satisfactory Encouraging Generally favorable. Remarks. General prosper- : Slight hardening The year has been Holiday trade un- Little evidence of ity; uncertainty j in rates; holiday one of the most usually heavy; increase in cost as to future: I trade excellent. prosperous in the business generally of living. satisfactory col- history of this ter- on firm basis. lections. ritory. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

34 FEDEEAL EESERVE BULLETIN. JANUARY. 1, 1917. GENERAL BUSINESS CONDITIONS. There is given on the preceding page a sum- spindles than any time during the last year mary of business conditions in the United and a half. States by Federal Reserve districts. The re- Manufacturers of boots and shoes have acports are furnished by the Federal Reserve cepted all the advance orders that they can Agents, who are the chairmen of the boards of handle, and, as their leather requirements are directors for the several districts. Below are well covered, are little interested in the present the detailed reports as of approximately De- market. The demand from consumers is not cember 23: so urgent. The demand for leather is lighter, with little change in prices. DISTRICT NO. 1—BOSTON. During the month there has been consider- Even before the publication of the recent able activity in money, and higher rates have peace overtures a feeling of hesitation or un- prevailed than for some time. After the first certainty as to the general business situation rapid increase, rates reacted but continue firmhad begun to appear among the business men Banks in this district have been well loaned up and manufacturers. This has, however, been for some time, and with an increased demand apparent from time to time during the year. for accommodation members have taken ad- With talk of peace hesitation has become more vantage of their rediscounting privilege with pronounced and manufacturers and merchants the Federal Reserve Bank. This has tended generally are awaiting developments before toward keeping rates on a reasonable basis. taking on new commitments. The statements of the Boston Clearing House In some lines the approach of the time for banks still show but small surplus reserve, and closing books and taking inventories is re- rates will, therefore, probably remain firm until stricting purchases. Many of the mills and after the January disbursements, although the manufacturers, however, are well sold ahead present heavy liquidation in securities may and are unable, or unwilling, to make contracts have a reactionary effect. Rates are—call with deliveries to start too far in the future. money, 6 per cent; six months7 money, 4-| to 4f Christmas trade was unusually brisk. Many per cent; year money, 4-| per cent; bankers7 retailers report the largest business in many acceptances, indorsed, 2J per cent upward; years, and some the largest in their history. unindorsed, 3 per cent upward; town notes, The cotton industry is less active and mills 3£ per cent upward. are booking little new business, due to the Loans and discounts of the Boston Clearing recent drop in cotton, the peace proposals, and House banks on December 16 show a decrease the fact that buyers of goods are busy, either of $14,842,000 from last month and demand taking stock or with the holiday trade. The deposits have decreased $2,534,000 in the same mills are well sold ahead and prices for fine and period. The amount "Due to banks77 on fancy goods continue firm, with a little weak- December 16 was $121,753,000 as compared ness evident in print cloths. with $143,312,000 on November 18. The Wool brokers have little wool on hand and excess reserve of these banks decreased from with limited sources of supply are not anxious $26,615,000 on November 18 to $25,816,000 to make sales, and, therefore, prices have held on December 16. firm. Mills have many contracts for future Exchanges of the Boston Clearing House for delivery, and the quarterly statement of the the week ending December 16 were $280,152,- National Association of Wool Manufacturers 120, as compared with $192,350,968 for the as of December 1, 1916, shows a smaller per- corresponding week last year and $277,309,318 centage of idle woolen and worsted spinning for the week ending November 18. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

JANUARY 1,1917. FEDERAL EESEBVE BULLETIN. 35 Building operations in New England from outside activities and workmen seeking shel- January 1, 1916, to December 20, 1916, tered employment during the winter months amounted to $204,936,000 as compared with have considerably improved the labor situation. $175,465,000 for the corresponding period of Several important industries have announced 1915 and $195,393,000 for the same period in further increases in wages. Financial institu- 1912, the highest previous year on record. tions are distributing among employees sub- Exports from the port of Boston for No- stantial bonus additions to salaries as comvember, 1916, amounted to $16,329,327 as pensation for the increased cost of living. compared with $19,706,548 for October, 1916, Some of the reports received on conditions and $9,219,676 for November, 1915. Imports in various trades and industries are the folfor November, 1916, amounted to $11,058,247, lowing : an increase of $1,671,348 over October, 1916, Steel.—No change in volume, payments norand a decrease of $1,953,020 from November, mal, orders booked in advance, and record 1915. unfilled orders reported by the leading producer. The receipts of the Boston post office for Copper and lead.—A growing demand November, 1916, show an increase of $5,235, throughout the fail, at constantly advancing or only about 1 per cent over November, 1915. prices, until about three weeks ago, when For the first 15 days of December receipts were demand fell off and prices receded. about 18 per cent, or $79,780, over HIG corre- Leather.—A seasonal lull in buying, prices sponding period of last year. firm, and some weakness in *the price of raw Boston & Maine Railroad reports net oper- stock. ating income, after taxes, for October, 1916, as Sugar.—Business quiet, but this is normal $1,385,762, as compared with $1,248,165 for at the season when grocers are taking inventhe corresponding month of 1915. New York, tories. Prices of refined sugar tending down- New Haven & Hartford Railroad reports net ward. operating income, after taxes, for October, Rubier.—Factories exceedingly busy on do- 1916, as $2,061,176, as compared with $2,196,- mestic orders, jobbers and retailers holding 853 for the same month last year. light stocks. Collections satisfactory. Paper.—Demand for news print paper ex- DISTRICT NO. 2—NEW YORK. ceeds anything heretofore known, exceeding During the last few days special reports on for the first time the producing capacity of the business conditions have been received from mills. This is accounted for by increased ada large number of firms and corporations. vertising and circulation. Everything entering These advices show that trade and industry into the manufacture of paper has increased in in general have continued active and practi- price. Foreign orders are large, and imports cally unchanged notwithstanding developments of foreign-made paper have fallen off considin the European war situation, the disturbance erably. in money rates, and the very unsettled stock Drugs and chemicals.—Some recessions have markets. occurred in prices of goods of foreign origin, Some wholesale distributors report a sea- but domestic goods have advanced. Export sonal lull in orders, as usual at the approach orders are large. Collections satisfactory. of the inventory period, but retail stores are Carpets and rugs.—Mills sold far ahead and handling an unprecedented volume of holiday no change in the heavy demand for floor covtrade. Collections generally are very satisfac- erings of all kinds. Outlook in the retail trade tory. Materials are still scarce and deliveries is satisfactor}^ and collections are good. of goods are somewhat hindered by a shortage Builders9 hardware.—Since the outbreak of of freight cars. The closing down of certain the war the erection of new buildings has Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

36 FEDERAL BESERVE BULLETIN. JANUARY 1, 1917. lagged, which has directly affected the volume Business failures.—Brads tree t reports 86 of this trade; but there has been a perceptible failures in the district during the month of increase recently. The trend of prices has been November, of which 78 represented concerns constantly upward. Collections are good, as with capital of $5,000 or less. This compares they have been during the last 18 months. with 87 failures in October, 73 in September, Food products.—Short crops generally and a and 65 in August. great domestic demand have caused prices to Chemicals.—There is considerable activity in rise, and when seasonal orders are filled stocks the market for chemicals, most of the products remaining in the hands of wholesale houses being firmly held. Prices of dyes tuffs have will not be large. Retail trade is very brisk declined somewhat. This is said to be due to and payments are satisfactory. speculative sales. Drugs and druggists' sun- Wholesale clothing.—The volume of trade dries arc in fair demand. continues to be unusually large, and prices are Coal.—Shipments of anthracite for Novemstill rising. Collections are exceptionally good. ber amounted to 5,993,000 tons, an increase of Money rates are firm and now on moderate 123,000 tons over the previous month, but a levels after several weeks of unusual strain, decrease of 501,000 tons as compared with particularly in the call loan markets. November, 1915. The anthracite situation is The statement of the New York Clearing slightly easier than earlier in the month, with House Association dated December 16, 1916, approximately the same prices prevailing. showed loans, etc., $3,342,471,000, deposits Bituminous coal shows continued strength, $3,465,670,000, and excess reserves $94,447,- with a strong, steady demand. Snowstorms 320. Since November 4 last these figures have tied up the railroads in the bituminous region, decreased as follows: Loans, etc., $14,576,000, with the result that the mines reported the deposits $60,921,000, excess reserves $29,- Ipoorest car supply this year. The coke market 659,720. Comparison with the totals of De- is strong. cember 31, 1915, shows loans increased $84,- Cotton.—The cotton-goods market is now 865,000, deposits decreased $1,050,000, and quieter, as the usual end of the year dullness excess reserves decreased $51,503,810. has appeared. Manufacturers are acting cau- Exports from the port of New York for the tiously and are buying only for present needs. week ended December 9 compared with the Export demand and domestic trade of good corresponding period in 1915 show a decline of volume have made this a successful season. $7,326,820, but the total since January 1 is Crops.—High prices for Lancaster County $1,074,847,889 higher than last year. tobacco have brought out practically all of the Gold imported from all sources since Janu- old stock. Some of the new crop has been ary 1, 1916, has reached a total of $608,500,000. delivered to warehouses as the weather has DISTRICT NO. 3—PHILADELPHIA. been favorable to seasoning. Farmers believe there will bo a scarcity and high prices next There is apparently no decrease in the acyear regardless of the war, and they are, theretivity of the leading industries, and complaints fore, planning a larger acreage for 1917. Reconcerning the difficulties in the production ports of the Pennsylvania State Department of and delivery of goods are still heard. This Agriculture indicate that the condition of winsituation is especially noticeable in textiles and ter wheat in the ground averages 98 per cent, leather. and the condition of rye 99 per cent. Recent The department stores in Philadelphia are snow since the report was published has imdoing a larger business than ever before, and proved the conditions. Final reports of the people are buying higher class goods. The 1916 cereal crops in Pennsylvania indicate that cold weather has been an added stimulant to although there was a shortage in yield, the the demand for strictly seasonable merchandise. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

JANUARY 1, 1917. FEDERAL RESERVE BULLETIN. 37 total value exceeded that of last year's crops Lumber.—Generally satisfactory conditions by almost 20 per cent. seem to prevail in the lumber industry at the Glass.—The price of window glass remains present time. The demand for all kinds has firm, though the demand has slightly fallen off. been firm. The orders taken are mostly con- Purchases are made according to requirements. fined to short-time deliveries, due to uncer- Stocks in jobbers' hands are normal, and there tainty attributable to the actual scarcity of is an absence of any speculative features. lumber, because of shortage of labor and of cars Groceries.—Business has been somewhat qui- available for shipping purposes. Very little eter among the wholesale grocers during the lumber is being received from the West, most past month, but is still good. As is usual of the supply coming from southern mills. during December, retailers are too busy with Building statistics encourage expectations of a holiday trade to give their time and attention big demand the next few months. It is also to extended purchases of goods. Prices in noted that new undertakings in the way of some communities have declined slightly. moderate-priced residences are very extensive. Collections continue fairly good. This is a reflection of the increased pros- Iron and steel.—Car shortage has checked perity enjoyed by workers in manufacturing steel production, but the high prices have held centers, and as lumber is largely used in these up earnings. Plants are sold ahead for the projects a continued active demand is exgreater part of next year and are running at pected. The rise in quotations of structural full capacity. The activity in pig iron, how- steel is causing the substitution of lumber, and ever, is diminishing as prices go higher, but with the prevailing anticipation that spring quotations continue upward. The overwhelm- demand will be vei'y active, prices are hardening demand for ship plates continues, Norwe- ing. gian, Italian, and Japanese interests being ener- Paints.—The past season has been a busy getic in their requests for ship steel. Railroads one for the painters, and there is considerable are considerable buyers, and good sized orders work in sight. Flax and linseed oil have adhave been placed for locomotives both for vanced steadily, and whiting is in good dedomestic and foreign roads. It is. reported mand, the lack of sufficient supply of chalk that the Baldwin Locomotive Works now have still hampering makers of this product. The enough locomotive orders to keep busy for the advancing productive costs have caused paint first half of 1917. Concerning the Steel Cor- and varnish makers considerable anxiety, and poration's increase of over 1,000,000 tons in the outlook indicates that higher figures must orders in November, it is stated on authority rule if a reasonable profit is desired. The dethat out of nearly 2,500,000 tons booked in mand for metallic paints is so heavy that that month, less than 10 per cent is to be makers are unable to keep up with it. classed as export emergency business. Port.—The commissioners of navigation re- Leather.—The leather market presents no port the value of exports from the port of new aspect. Tanners are refusing to make Philadelphia during the month of November large sales to either domestic or foreign buyers, as $41,467,000, an increase of 826,995.000 over and are endeavoring to make the best division the shipments made during the corresponding possible of the stock at their disposal among period of last year, and an increase of $16,domestic customers. Hides have dropped 250,000 over October of this year. The value slightly, but this has not affected leather buy- of war materials exported was 62 per cent of ing or leather values. The cost of raw mate- the total value. Of other commodities exrial and of production has increased materially ported, oil products show the heaviest gains. and the continuance of the present prices seems An increase of $1,881,000 is shown in the value to be recognized by buyers as inevitable. of the imports, the values for November roach- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

38 FEDERAL RESERVE BULLETIN. JANUARY 1, 1917. ing a total of $6,947,000, as against $5,065,000 mills are better engaged than a month ago. for November, 1915, and §7,603,000 for Octo- General trade in dry goods has been good. ber of this year. In accordance with an estimate made by Post-office receipts.—Receipts of the Phila- officials at the Schuyikill Arsenal, the Governdelphia post office for the month of iSFovember ment will be in the market for more than amounted to 8826,094, compared with §783,981 $15,000,000 of Army supplies, mostly clothing during November, 1915. There were 267,342 items, during the first half of 1917. money - order transactions, amounting to Wool.—Uncertain prospects have suddenly $1,985,087, an increase over the previous No- brought the wool trade almost to a standstill. vember of 7,062 and $186,747, respectively. Prices had reached the highest point possibly Railroad car movements.—The Pennsylvania ever known, and profits have been abnormally Railroad, as a result of cooperation of freight large. It is reported that the accounts being solicitors and shippers, is moving the present carried are of twice the usual amount, yet setimmense volume of freight over its lines at tlements are promptly made. an average increase of 2 tons per loaded car " Cfiristmas Savings Club" disbursements*— as compared to last year's records. This in- The first "Christmas savings club" in the crease covers all classes of freight. More United States was opened by one of the trust powerful locomotives and larger cars are used. companies in Pennsylvania in 1909 and, since Shipbuilding.—World-wide conditions have that time, each year has witnessed increasing brought an unprecedented expansion in the numbers of banking institutions conducting shipbuilding industry. The demand for mer- such clubs. Efforts were made to secure inchant tonnage and the diversion of British formation from all banking institutions in the yards almost exclusively to building war vessels district as to the amount of Christmas savings have combined to bring tremendous pressure club disbursements. The table below shows on our shipyards. Before the war, American that this year 457 institutions returned over companies were not building many ships for $9,000,000, the largest disbursement of any one other countries, but now, our yards, greatly en- institution being about $383,000. larged, have begun to turn out vessels for foreign owners. Merchant tonnage in the Philadelphia f g F N i r e s o o c d v s a e s e l r m a y t l o b e a n e R r r s , e e 1 s n 4 , e d 1 r 1 v i 2 9 n e , 1 4 g 6 0 d J , 8 u i . i s s n t e r a T i s c 3 o t 0 fo , b u l e 1 l n o 9 d w l 1 e a 7 s r u : : n N c N c h o u u e n m m d s b t b r e e d u r r u c , , t r i i 5 8 o n 9 7 n g ; ; i b N b t n r a e u i n r d c m k i o t s . s - f - b r N b e i a e n u p r n g m l k y o . s - - f c b r e e i a P n n p n e t g l k r y . o s - f s r C i B a c e n v m l h p a g u i r n o n a b is n r s k g s t t o s . s - - s C B c a d c m l h v i a u u o n r i n c a b n i n g s k s t s - g - t s . - s o c A s m f l b a u m m u C v e b r i o n h a s n d u r s t e g s i i n - s s . s t t - gross tons, 270,464. June 30, 1918: Number, Per ct. 28; gross tons, 141,944. National banks.... 632 576 91 303 273 83,948,319 Trust companies -. 228 182 80 71 111 4,240,885 Textiles, etc.—Textile manufacturers are ex- State banks 133 114 86 41 73 1,206,640 tremely busy. There is a scarcity of goods in Total 993 872 88 415 457 9,395,844 many lines, and the holiday trade has materially reduced the stocks of jobbing houses. Money.—During the first half of the month The carpet and rug trade is brisk, scarcity of surplus reserves of the Philadelphia banks raw materials and high wages interfering with reached the lowest level, proportionately, since production. Conditions in the silk trade have the establishment of the Federal Reserve improved slightly, there having been some Banks. Call money rose from 3-| to 5 per cent, buying of spring goods; reports from manu- other rates being also advanced, and there facturers indicate that the capacity of the silk has been no material reduction since. Most of mills has been much increased. The tapestry the local banks are well loaned-up. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

JANUARY 1,1917. FEDERAL RESERVE BULLETIN. 39 DISTRICT NO. 4—CLEVELAND. ranging 50 cents to $1 a ton over the contract Entirely inadequate railroad facilities and a prices realized for the 1916 output. shortage of fuel, including coal, coke, and nat- Oil and gas interests are prosperous. In ural gas, have caused some curtailment in some instances prices being paid for oil are the operations during the last month. The situa- highest ever recorded. Great activity is taking tion in this respect has been aggravated by zero place in the Kentucky oil fields. Production weather and snow. Notwithstanding these is increasing in that district and considerable obstacles, reports on conditions continue quite money is going there for investment. The clay satisfactory. The partial disturbance in stock industry is active in all its branches. and commodity markets, caused by develop- Manufacturing.—The steel business is enterments in the foreign situation, seems to have ing 1917 with the largest order book in its hishad absolutely no effect upon industrial and tory. The amount and character of these mercantile operations and little or none upon orders, the safeguards adopted for enforcing industrial and commercial sentiment. legal contracts, the proportion of actual speci- Agriculture.—There is nothing new to report fications for orders given appear to assure full in the general agricultural situation. The operations for the ensuing 12 months at least. tobacco crop is bringing prices beyond all rec- The business also has been distributed. It has ord. Common grades that last year brought come from railroads in all their lines, shipbuildfrom $3.50 to $4 will to-day sell for around $9 ing both on the ocean and the Groat Lakes, to $11 per hundred. In some parts of the dis- from structural and bridge work. There has trict values of farm lands have sharply in- also been a general requirement in the way of creased, with considerable activity in exchanges pipe, tanks, and specialties which altogether and sales at the increased prices. has created a demand beyond anything in the Raw materials.—During 1916 over 67,000,000 steel business in this country or elsewhere. tons of ore have been brought down the Great Costs, however, are increasing, and it is doubt- Lakes. There has been produced over 40,- ful whether the profits will be as great in 1917 000,000 tons of pig iron. Prices have ad- as in 1916. Manufacturing concerns of every vanced slightly during the last 30 days. kind report orders ahead at satisfactory prices, The lumber trade, which is quite an im- ranging from three months to a whole year, portant one in this district, has not partici- and in exceptional lines talk is heard of delivpated in the present prosperity as much as eries being deferred to 1918. other interests. The volume during the year Optimistic reports on conditions, in addition was somewhat smaller than the average for a to steel and its products, include such indusseries of years and profits less. The explana- tries as glass, electrical goods, rubber, automotion offered is high costs in primary markets biles, pottery. and difficulty of prompt delivery which influ- Garment and knit-goods manufacturers reenced dealers to take less chances in maintain- port an excellent demand for spring goods. ing full stocks. They expect to see wool prices well maintained, Fuel.—The coal business is quite active at stating that prices of 1915 were abnormally prices somewhat under what they were a low. month ago. The freight embargo is being felt Transporiatioji,—The year will probably close in this industry. Both coal and coke trades with the worst car shortage yet experienced. are looking forward to 1917 as registering the Limited embargoes exist on a number of lines largest and most uniformly profitable business and temporary suspensions and shutdowns are ever experienced. This view is based on the occurring in some industries affected. Tracfact that 6 and 12 months contracts are now tion travel has taken on its usual expansion for being concluded with large consumers at prices the holidays. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

40 PEDEKAL KESEKVE BULLETIN. JANUARY 1, 1017. Labor,—Labor is fully employed and gen- as earlier in the year, Comparative table is erally is satisfied. Restlessness is noticed only given herewith: in a very few reports. Three advances were made during the year in which workers in steel, Permits issued. Valuations. Per coke, and kindred industries participated. Increase c i e n n - t for A j l o th b o b u e g rs h in th m is er i c s an a ti b le e tw lin e e e s n , - s t e h a e s o d n e s m p an er d i o i d s No 1 b 9 v e 1 e r 5 m , . -! N 1 o b 9 v e 1 r e 6 m , . -J b N e o r, v e 1 m 91 - 5. b N e o r, v 1 e 9 m 1 - 6. decr o e r ase. c c o r r r e e a d a s s e e e - . relatively good, prices firm, and collections Akron 277 422 S535,105 $1,164,465 §629,360 117.6 fine. Department stores are* doing the best Cincinnati... 1,269 1,139 790,965 771,195 i 19,770 12.5 Cleveland 1,012 1,131 2,434,715 2,843,245 i 408,530 " 16.7 business in years—some report the best in all Columbus 243 217 347,350 5c"5A4 ,r9\t>6K 5I o2n0r>7 ,6u1-tc5 59.7 Dayton 54 120 131,075 315,997 184,922 141.0 their experience. Comparative percentages of Pittsburgh... 303 328 663,312 916,806 253,494 38.2 Toledo 230 229 535,755 543,270 7,515 1.4 sales do not disclose the real increase in business Youngstown. 79 99 203,790 269,635 65,845 32.3 because of the higher prices of goods sold. For 3,4(37 I 3,085 15,642,067 7,379,578 jl, 737,511 30.8 example, a number of retail shoe stores report g a r e d a e t c e l r i ne m i o n n e t y h e v n a u lu m e b e i r n o t f h e p ai s r a s l e s s o ld v o b lu u m t e a . su P e e e d n r d m f i o n it g r s — y i e s- ar Valuatio i n n s g , — year end- c P e e n r t | Increase in- Post-office receipts for the eight large cities in •! or crease Nov. Nov. ! decrease. or the district for November showed a decrease 19 8 1 0 5 , . 1 3 91 0 0 , . No 1 v 9 . 1 5 3 . 0, No 19 v 1 . 6 3 . 0, cr d e e a - se. of approximately 5-J per cent compared with October but almost a 10 per cent increase over Akron 2,153 4,590 So, 072,840S12, 41,84 ,669,006 151.1 Cincinnati 15,734 16,161! 13,121,268"- 10,943,145 2,178,123 i 16.6 November of last year. Figures are given Cleveland 14,166 14,042i 32,891,255 30,027,280j] 2, SG3,975 18.7 Columbus 2,823 3,129! 5,783,285' 7,102,240! 1,318,955 22.8 below: Dayton 818! l,379i 2,157,672^ 3,478,003! 1,320,391 61.2 Pittsburgh 3,8161 4,255! 14,881,990; 15,350,4901, 468,500 3.1 Toledo..'... .2,74fij 4,269i 7,358,200' 9,601,499 2,243,299 30.4 Youngstown... 1,083 l,335i 3,182,9051 3,521,739 338*^ 10.6 Nov 1 e 91 m 6 b . er, Nov 19 e 1 m 5. ber, In d c e r c e r a e s a e s e o . r in d P c e e r c r e r a e c s a e e s n e o t . r 43,339! 49,160; 84,449,415' 92,766,302 8,316,887 9.8 i Decrease. Akron 855,253 853,243 S2,010 3.7 Cincinnati 279,976 252,189 27,787 11.0 Collections.—Credit men report more satis- Cleveland 330,553 297,617 32,936 11.4 Columbus 100,460 88,656 11,804 13.3 factory collections than last month. The Dayton 69,498 71,045 M-, 547 16.1 Pittsburgh 361,816 323,948 37,868 11.6 strain on capital of smaller concerns is found Toledo 95,430 87,053 8,377 9.6 Youngs town 27,118 24,532 2,586 10.5 occasionally, due to increased funds necessary Total 1,320,104 1,201,283 118,821 9.8 to carry inventories and customers. Business men, however, are not quite as daring as they 1 Decrease. were a few months ago. The inevitable read- Real estate and building.—Compared with justment has as a rule been kept constantly last month, building, because of weather condi- in mind for the last six months and corporations, shows a decrease. About 1.000 less tion management is much more conservative building permits were issued in the large cities to-day than ever before at the end of a year of of the district in November than in October. unprecedented prosperity. There is an increase of almost 31 per cent in Money and investments.—High-class bond invaluations of new buildings in November, vestments have been in heavy demand during 1916, over November, 1915. This is very December. This is due to the disturbance in satisfactory in view of high costs for materials speculative securities and the continued accuand difficulty in getting labor. Real estate mulation of funds. Money is ruling firmer than brokers report a brisk demand for moderate it did 30 days ago. Clearings continue to show sized homes. New buildings are being erected large increases both over figures for the same in the down-town section of all our cities. period last year and for the preceding month Factory building and extension is not so evident this year. Banking transactions of all kinds Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

JANUARY 1,1917. FEDERAL RESERVE BULLETIN. 41 aggregate totals of unprecedented size, and the and the establishment of small industries, volume of business is keeping up unabated. including additions to many existing plants. There are at present no signs that the unearned Building.—Jobbers in this line report an portion of our prosperity will have to be paid increased volume of business, a large volume for in 1917, since the momentum already ac- of new building being underwa}^, notwithstandquired will likety carry the movement for at ing the advance in prices of supplies and the least that period. Comparative figures on high cost of labor. These conditions are indiclearings are given below: cated throughout the district. Richmond, Va., leads with a reported increase of 73 per cent Per cent in the volume of building over this time last Dec. 1 to Doc. 1 to Increase. | of 15,1915. 15,1910. i increase. year. Coal.—Mining of bituminous coal continues Akron $5,774,000 $11,121,000 85,3-17,000 92.6 on a favorable basis, but shipments are being Cincinnati 69,023,150 86,204; 013 17,180,863 24. S Cleveland 79,153,594 149,345,125 70,191,531 88.6 retarded by continued car shortage. The Columbus 18,128,500 24,053,300 5,924,800 32.7 Pittsburgh 129,231,786 164,803,836 j 35,572,050 27.5 manufacture of fire brick in some of the coal Toledo. 16,141,779 23,520,370 i 7,378,591 45.7 Youngstown | 4,600,737 7,180,828 |2,580,091 35.9 regions is on an unusually good basis. Port 322,053,546 1466,228,472 ; 144,174,926 44.7 shipments of coal continue to show a decrease. I I I Prices are firm, with a scarcity of freight DISTRICT NO. 5.—RICHMOND. room and a continuance of high rates. Trade, agricultural, and other reports indi- Cotton mills.—Conditions are reported satiscate a continuance of the full tide of prosper- factory from every standpoint—mills running ity, with occasional conservative notes of to full capacity at profitable prices, distribuwarning in anticipation of a readjustment to tion good, and mill stocks at a minimum. more normal conditions. Such a return is Sales to retailers are in fair volume but anticipated, without any material recession in limited, owing to the uncertainty of future business. trend of prices and to the high price of cotton. The continued high cost of materials, labor, Prices are also affected to some extent by the and particularly living, is commented upon anticipation of a greatly increased acreage in everywhere. Concerted effort toward cost cotton next year. Although prices for cotton reduction is being made by housewives and have declined very materially within the past many organizations. week or 10 days, goods are firmly held and have Reports as to conditions among the farmers not declined proportionately. Spot goods are emphasize properous conditions, and indicate very firm and future deliveries only slightly great activity in the preparations for future less so. There is a note of caution, however, crops. Truckers and canners have had a sounded by several conservative operators as to successful season, both as to output and prices. abnormal prices, closer margin of profit, and Tidewater Virginia has raised an unusually possible reaction from present conditions. large crop of fall Irish potatoes, which are Exports continue in large volume, the movebeing sold at $4 to $5 per barrel. The fish ment from Baltimore, Norfolk, Newport News, and oyster industry in the same section has and other ports indicating an average increase been unusually profitable, and the menhaden of about 100 per cent over last year. fisheries of Chesapeake Bay have had a better Furniture.—Conditions are reported to be the season than for several years past. The pro- best prevailing in many years, plants running duction of fish scrap by this industry is an to full capacity, and the outlook favorable for important factor in the fertilizer trade. a continuance of this activity. The advance in The industrial agent of a trunk railroad re- price of the finished product appears to have ports general activity in farming, stock raising, balanced the advancing cost of raw materials, Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

42 FEDERAL RESERVE BULLETIN. JANUARY 1, 1917. leaving a satisfactory margin of profit. Col- ing raw material. The increased cost of matelections are good, with a considerable increas- rial and labor has restrained trade less than was ing demand for goods. expected, but the heaviest purchases of ma- Jobbers.—"Plave never known conditions chinery in this district has gone into revampto be better," is the way one jobber puts it ing, balancing up, or enlarging in a moderate ; and this seems to be a fair report of the trade way existing plants, rather than to undue conditions generally. Buyers are rarely asking expansion in new plants. Sales are largely for for any extensions, and an unusual number are cash, evidencing prosperity among the mills. discounting bills. There seems to be, how- Metal houses report an abundance of orders ever, considerable difference of opinion as to sufficient to take their product several months the future. Large business is generally ex- in advance, without any apparent relaxation pected, but many look for lower prices and in the demand. Export orders are not being predict that jobbers and retailers will only sought, as the home demand is sufficient to purchase moderately, at least until there is pretty well consume the supply. Pipe founsome recession in prices. There is a disposi- dries, furnaces, etc., are running to full capacity tion to reduce stocks and keep commitments with orders ahead for all they can produce. well in hand. Money and banking.—Deposits are at high- Live stock.—The interest in this line con- water mark, and many banks have sought outtinues to be gratifying, the reports from sales side investments, but these appear to be wisely indicating high prices and a profitable return. limited to such as are of a liquid nature. Bank One point reports a sale of 350 hogs, attended reserves have indicated a decreasing tendency by buyers from Richmond, Baltimore, and of late, many banks having furnished considnearer points. erable amounts of money to borrowers on short- A still more gratifying indication is the impor- term notes, trade acceptances, or commodity tation into the district of better grades of cattle. notes, representing the purchase of cotton, One stockman has purchased 200 Aberdeen- cotton seed, and other products. ' Much of this Angus cows and 6 bulls. financing has been done by the banks without Lumber.—The lumber business has had a finding it necessary to rediscount with the general and steady improvement during the Federal Reserve Bank to any large extent. past 60 days. A much stronger demand has The peanut crop is reported to be of good developed for the better grades of lumber, quality and slightly below normal. There is which have been very stagnant since the Euro- some disposition to hold peanuts for better pean war. This indicates reduced stocks, an prices. This is being done in spite of the fact improved demand, with a stiffening in prices, that prices are already high enough to have the improvement averaging apparently $1.50 discouraged much speculation. The demand to $2 above prices prevailing 60 days ago. The is active for all grades, and cleaners are handling outlook is for further improvement. the crop freely on a fair basis of milling profit. The hardwood trade was v6ry much demor- Railroad earnings show an average increase alized by the European war, but is now re- of about 10 per cent, with a strong pressure for ported as in excellent shape. The interrupted cars, indicating the offering of an increased trade with the belligerent nations has been volume of traffic. replaced by demand in other directions, and Clearing-house returns from the district inthe vohirne of sales is showing a steady im- dicate an increase of 27 per cent over last year, provement over last year. postal receipts and money-order business con- Machinery and metals.—The machinery de- tinuing in increased volume. mand is rather beyond capacity as to prompt Federal Reserve clearings for the month deliveries, owing chiefly to difficulty in obtain- ending December 15 show an increase of 1.69 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

JANUARY 1,1917. FEDERAL RESERVE BULLETIN. 43 per cent in the number of items and 2.69 per two dry docks capable of receiving the largest cent in the volume. vessels which can pass through the Panama Shoes.—Reports in this line seem to be con- Canal locks. Bids for the building of this flicting, indicating some unsettlement, at least dock are shortly to be asked. in the minds of jobbers and manufacturers. The Government has purchased at Cape One large manufacturer summarizes the situa- Henry the necessary site for the erection of tion as being " without parallel/' but evidently the most modern defenses for the entrance of anticipates that present conditions can not last Chesapeake Bay. indefinitely and urges caution. Another says goods are selling at prohibitive prices, and lie DISTRICT NO. 6—ATLANTA. is therefore buying materials very cautiously, Conditions have not materially changed in as experience teaches that prohibitive commod- the district during the past 30 days, except for ity prices always result in reaction. Retailers an unusual activity among retail merchants have been buying liberally and collections have due to the enormous volume of buying incident been good. Manufacturers are not disposed to to the holiday season. There is an abundance urge sales, as they do not consider it desirable of money in this section of the country and a for jobbers to overload at these prices. feeling of confidence that the prosperous times A large lumber company, a subsidiary of the are to continue. The cities report crowded Norfolk-Southern Railroad, reports the sale to stores and large increases in the number of northern capital of 45,000 acres of land in sales as well as volume of business. eastern North Carolina to be developed for Bank deposits continue to grow and some of farming and stock raising. The lands in this the banking centers report demands for loans section have heretofore been unavailable for considerably increased in the past 30 days. lack of drainage. Under a new State drainage Collections are exceedingly good for this season law, districts have been formed, under which of the year. Real estate is somewhat more the financing of scientific drainage has been active. Building operations show considerable accomplished. gain, and according to figures given out by the On the Maryland Stool Plant, recently pur- American Contractors Association the followchased by the Bethlehem Steel interests, an ing increases are reported in the larger cities of expenditure of $40/000,000 to §50,000,000 is our district: New Orleans, 49 per cent; Bircontemplated. The Newport News Shipbuild- mingham, 37 per cent; Nashville, 32 per cent; ing & Dry Dock Co. has extensions and im- Atlanta, 22 per cent. provements to its plant underway to cost The various industrial and manufacturing $1,000,000. This plant has orders far in ad- plants of the district continue to operate at vance of production. capacity and more favorable reports come from The purchase by the United States Govern- the coal-mining section. The car shortage is ment has just been announced of 1,700 acres less acute and coal operators anticipate further of land on Back Bay, adjacent to Fortress relief in this respect in 1917. Among the Monroe, for use as an aviation Held and proving special features is the wide development of the ground for the Army. The War Department graphite mines in Alabama. • Many new comwill ask for an appropriation for buildings and panies have been formed and operators advise equipment. that their output can be sold at a high figure The city of Norfolk has just made an appro- for the next five years. priation of $391,000 for the purchase of a The Alabama press report oil found on the water front for municipal docks and manu- lands of the Pratt Consolidated Co., 33 miles facturing plants. from Birmingham on the banks of the Warrior Appropriations for the Norfolk Navy Yard River. The drillers struck oil at a depth of authorize the construction there of one of the 800 feet, and after drilling into the oil-bearing Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

44 FEDEKAL RESERVE BULLETIN. JANUARY 1, 1917. sand only about 12 inches they estimate the Florida is enjoying a good season in the flow already at something like 150 barrels per winter fruits and vegetables. The following day. Further development has been suspended number of cars have been shipped from Jackawaiting the arrival of Gov. Haskell, of Okla- sonville, High Springs, and Hampton since the homa, one of the parties interested in the propo- opening of the season, September 15, to Desition. cember 19: Grapefruit, 1,849 cars; oranges, At Kingsport, Tenn., an eastern corporation 7,733 cars; lettuce, 531 cars; vegetables, 72 has purchased several hundred acres of land cars; potatoes, 11 cars: pineapples, 5 cars; toand has under construction, and, in a small matoes, 2 cars. way, in operation, a plant for the manufacture Reports from Georgia and Florida are to the of dyes, by-products, and explosives. This is effect that a large number of winter tourists an entirely new industry in our district and is have arrived and that the hotels look forward being watched with a great deal of interest. to a more prosperous season than for many The outcome of the crops has proven more years. satisfactory than forecast indicated, with the There have been a few slight decreases in exception of the central and southern portion prices of commodities but on the whole the of Alabama. Due to the torrential rains dur- cost of living shows little change. In view of ing the summer and the ravages of the boll- prevailing conditions a number of the indusweevil in the latter part of the season these sec- trial corporations have voluntarily granted intions produced only a small part of their usual creases in wages and this is being reflected in cotton crop. Their cotton acreage had been the general trade. Little changes are reported decreased and with a lack of fertilizer a normal in the compensation of the salaried man other crop was not expected, but it was hoped that than bonuses given to employees at Christmas crop diversification would more than offset the as added compensation. loss. However, a great deal of the corn and The New Orleans branch of the Federal Reother diversified crops met with the same pro- serve Bank of Atlanta reports as follows: portionate damage as cotton and left the pro- There has been but slight change in the ducers in these sections in a far less prosperous banking situation in the past month. Demand condition than in any other portion of the with banks is light and rates are easy. Dedistrict. posits and clearings continue to increase. In the dark-tobacco fields of Tennessee the The demand for bonds and high class securibuyers are reported eager for tobacco and it is ties is now greater than ever before recorded stated that probably 75 per cent of the crop, in this section. said to be the largest ever known, has changed For the 11 months of 1916 New Orleans clearhands. Prices have been on a gradual in- ings aggregated $1,206,341,922 against the crease since the opening of the season, now same period for 1915 of $862,440,150. ranging from $6.50 to $11.50, with some sales The stock of coffee on hand in public warereported as high as $18, and it is believed that houses is: Brazil coffee, 242,500 bags; all other the market will go still higher. kinds, 45,350 bags. Yellow-pine lumber continues to show a slight The coffee afloat from Brazil to reach here advancing tendency, but the movement is not within the next six weeks is 230,000 bags. at all in keeping with advances in cement, The Louisiana sugar crop has been harvested brick, steel, and other building materials. The and, with the exception of only a few sugar hardwood situation is very satisfactory. Deal- houses, grinding is practically over. The coners report an increased demand and their ex- sensus of opinion is that this has been the most pectations are that walnut, oak, and cypress satisfactory year for over a decade, notwithwill soon find higher levels. standing the ill effects of the recent freeze. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

JANUARY 1,1917. FEDEKAL RESERVE BULLETIN. 45 DISTRICT NO. 7—CHICAGO. considering that the volume of purchases of All authorities report a continuation of the automobiles at this time of the year is small. large volume of business. There is no marked Coal.—The attractive market for coal has evidence of recession due to the peace rumors caused the opening of a number of mines which now current. Bank deposits throughout the had been closed for from one to five years. district continue to increase and money rates The assertion is still made that notwithstandare still down. Demand for funds is only fair, ing the insufficient car supply large production especially in big cities, though several country has been maintained, business being away correspondents report a loaned-up condition in above normal. One dealer looks for decreased the banks under their observation. It appears production for the balance of the month, due that the marketing of some products has been to weather conditions, shortage of equipment, insufficiency of motive power on railroads on hastened by the high prices prevailing, and this account of severe weather and usual holiday circumstance no doubt contributes to the conshortage of labor. Business is prospering with tinued ease of money. unusually satisfactory collections. Shortage of cars is still felt in manufacturing lines, making it difficult to secure raw material Distilling and brewing.—Withdrawals from promptly, and has also held up to some extent bonded warehouses are largest in the history of the shipment of grain, as well as other products, the business with sharp advances in whiskies. thus affecting some collections. Retailers are Malt companies are so rushed as to be unable doing a large business due to the usual holiday properly to handle business and welcomed recent buying. No decrease from the high prices of break in grain markets resulting in the withfood and clothing can be noted. holding of orders by some buyers. High prices of all grains and inferiority of corn will limit Generally favorable weather for farming pre- 1917 crop. Collections are very satisfactory. vailed in this district during the past month. Winter wheat is promising, and there is an in- Dry goods.—itetailers report an increase in creased acreage. Illinois corn has been a dis- business of 20 to 25 per cent and an increase in appointment in quantity and of only fairly stocks of about 40 per cent, but that there is a good quality; elsewhere no complaint is heard. general inclination to great conservatism in fu- Pastures seem to be in splendid condition, due ture purchases. Wholesalers report increased to the warm weather and rains. shipments with orders falling off, partly owing to large previous commitments on the part of Bond houses look for increased activity in retailers and partly owing to the feeling that American securities, due to the decline in dethe top of values has been reached. The dismand for foreign obligations. They report this proportionate salary increase of the consumer year as an excellent one in volume and believe compared to the cost of foodstuffs and clothing that investors in foreign bonds will incline tois mentioned as a factor likely to induce greater ward collateral issues. conservatism in future consumption, although Agricultural implements.—Volume in this line nothing of the kind is now apparent. Collechas been large generally, though slight curtailtions are satisfactory, and there is a hopeful ment in purchases is mentioned in one quarter outlook for the future. as due to high prices. Price readjustment has Furniture.—On the whole this business is in been necessitated by a rapid advance in raw excellent condition. Labor conditions are a materials, and this has been a serious handicap. shade easier and collections are good. Fac- Long-time commitments in raw materials have tories are busy and have a larger amount of been necessary to insure future delivery. Launfilled orders than usual at this time. Exbor is restless. cessive values in many lines are still main- Automobiles.—Nothing new has developed in tained, but there has been no material advance this line. Volume is apparently satisfactory, over last month in this direction. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

46 FEDERAL RESERVE BULLETIN. JANUARY 1, 1917. Grain markets.—Decided reactions in all mar- paid for any other staple, while nearly all kinds kets resulted from the recent peace talk, and of lumber have advanced in price. future prices will vary with the cessation or Mail order.—Business in this line is reported continuance of hostilities. Grain for export to have shown a considerable gain over the has been retarded, first by car shortage, and same period last year in District No. 7. then by lack of ocean tonnage. Corn is mov- Pianos.—Concerns in this industry are quite ing fairly well, and is in good export demand. active either with immediate or future orders. Farmers are eager to market. High prices for raw materials and difficulty Groceries.—In the face of extremely high- in securing same are a serious menace to volpriced staples there is no let-up in the con- ume; however, collections in general are good. sumption. Among the trade there is the feel- Prospects for the coming year are said to be ing that prices have about reached their high good. level. Retailers are well stocked up, and buy- Steel.—This industry is booked so far into ing is at low level, as usual for this time of year. the future as to be able to disregard any tem- Car shortage is blamed by some wholesalers for porary adverse conditions. Business is enorfailure to get certain goods to take care of the mous, with no abatement in sight. Collections demand. Collections are generally satisfac- are excellent and prices very high. tory. Watches and jewelry.—We are told that these Hardware.—Volume in this industry is being are record days for houses in this line, one well maintained. However, high prices must reporting business for November 26 per cent eventually restrict volume, say authorities. ahead of a year ago and the first nine days of The shortage of cars, labor, and raw materials December 58 per cent ahead of the correspondis making itself felt. Collections are a little ing period last year. Goods are selling at high short of satisfactor}^. prices and volume is due to general prosperity. LeatJier.—This is the usual slowing-up period Wool and woolens.—In this line business conin the leather business, and, as far as new sales tinues good with steadily advancing prices are concerned, the present period is no excep- which will continue to increase as long as the tion, but orders for immediate delivery are war lasts. Collections are excellent. occupying plants to capacity, and there is good Clearings in Chicago for the first 21 days promise of large future bookings, since finished of December were $1,496,000,000, being leather stocks are low. Continued mainte- $399,000,000 more than for the corresponding nance of high prices will depend on the foreign 21 days in December, 1915. Clearings resituation. Collections are very good. ported by 21 cities in the district outside of Live stock.—Exhibitions at the International Chicago amounted to $291,000,000 for the first Live Stock Show held recently in Chicago re- 15 days of December, 1916, as compared with vealed an excellent quality of live stock. The $193,000,000 for the first 15 days of December, prize-winning steer sold at auction for $1.75 a 1915. Deposits in the eight central reserve pound, a total of $1,977.50, the highest price city member banks in Chicago were $702,paid for a steer in the history of the industry. 529,000 at the close of business December 20, Receipts have been liberal, prices tending down- 1916, and loans were $482,144,000. Deposits ward, and collections are a trifle slower. show a decrease of approximately $5,000,000 Lumber.—Ver}^ little complaint is mani- and loans a decrease of approximately fested in this industry. Building operations $2,000,000 over last month. compare favorably with past periods. How- DISTRICT NO. 8—ST. LOUIS. ever, comment has been made that comparatively speaking wholesale lumber dealers are The extreme activity of business in this disreceiving less for their product than is being trict reported for November has been even Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

JANUARY 1,1017. FEDERAL RESEBVE BULLETIN. 47 greater during the present month. The • in- According to Government estimates the area crease is apparent in practically all lines, but sown in winter wheat this fall throughout the particularly in manufacturing, jobbing, and United States i& 2.3 per cent more than the the wholesale and retail business. area sown in the fall of 1915, the total esti- Both wholesale and retail stores had a record- mated area sown this fall being 40,090,000 breaking Christmas business. For some of acres, with an increase over last fall of 887,000 them it was the largest in their history. This acres. However, in this district, while the is especially true of the wholesale dry goods acreage sown in winter wheat is large, yet it houses and the big department stores. Jew- is estimated as being a little less than that elers, both wholesale and retail, are also having sown in the fall of last year. The condition an extremely large business. One of the of the winter wheat in this district is estimated largest hardware houses in this district reports to be 3.9 per cent below last }^ear and 4.6 per that it has never had a larger business than cent below the 10-year average. Nevertheless, the weather is seasonable and the recent snowthis month. falls should help the wheat considerably. Prices continue very high, but a number of interests in this district have either increased The cotton-growing portions of this district wages or given Christmas bonuses to their are also in excellent condition. The cotton employees, so that the high prices have not growers have not only been blessed with yet affected the demand. Active demand abundant crops, but have also received excontinues for both luxuries and necessities. ceptionally high prices for their product. On Buying, while heavy, still is not generally in the whole they have had a most successful excess of incomes. season. The report comes from Louisville that Manufacturing concerns are working to ca- tobacco is moving in large volume at much pacity, with large orders ahead. Many indus- better prices than last year. tries are feeling the effects of the high prices The St. Louis National Stock Yards report of raw material, and some are experiencing that during November, 1916, considerably difficulty in obtaining a sufficient supply at more cattle, horses, and mules were shipped any price. Manufacturers of shoes are doing than during the same month last year, but an extremely large business, but are refusing that a less number of hogs and sheep were to take orders at present prices for delivery shipped. However, in comparison with the later than 30 days, owing to the unusual con- figures for October of this year the reports dition of the leather market. Further ad- would seem to indicate that there has been a vances in footwear appear unavoidable. perceptible slackening in the demand for cattle, The shortage of cars continues, and while sheep, and horses and mules, with an increase the condition is slightly improving, yet many in the demand for hogs during the past month. of the manufacturers are hampered in making Commission men say that it is becoming diffideliveries after goods are sold by reason of cult to get horses fitting the Army specifications, and that the prices for them are much their inability to secure proper transportation higher than they were a year ago. facilities. From report's received from the principal This district is unquestionably feeling the cities in this district, it appears that building effects of the prosperity of its farmers. While operations are quite active for this season of the crops have not been as large this year as the year. While there has been a slight delast, yet the returns which the farmer has crease in the number of permits issued and the received for his products have been greater, valuation since last month, yet in comparison and this has enabled him to pay off his debts with this time last year an increase in the operand still have money to spend. ations is noted. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

48 FBDEBAL KESEEVE BULLETIN. JANUARY 1, 1917.. The postal receipts in St. Louis, Louisville, j a slight hardening of rates. Many of the and Memphis for November, 1916, show sub- larger institutions are well loaned up in constantial gains over the corresponding months sequence of heavy demands from their correlast year. The postal receipts in Little Rock spondents during the last 30 days. The outshow a slight decrease. look is generally regarded as favorable and the The clearings throughout the district show | coming annual meetings will probably disclose a decided increase. For the week ending De- that the earnings for the year have been encember 9, 1916, the percentages of increase tirely satisfactory. At country points the over the corresponding week in 1915 were as jbanks are in a strong position, and are exfollows: Memphis, 42.7 per cent: St. Louis, j periencing a good demand, with rates prac- 40.4 per cent; Louisville, 22 per cent; and j tically the same as for some weeks past. Little Rock, 18.7 per cent. I Industrial concerns and practically all of The deposits in all the banks in this district j the manufacturing enterprises of the district continue at a high level, and money is easy. are enjoying a substantial activity, except as The rates for money are about the same as the car situation has interfered with their reported last month. The prevailing rate to j operations. Most concerns have orders ahead customers in St. Louis is from 4 to 4J per cent, Ifor the first part of the coming year, and there and in other sections of the district it is some- are no signs of any recession. Trade at what higher. country points is good, and wholesale and distributing lines report an excellent business. DISTRICT NO. 9—MINNEAPOLIS. Collections are very good. Generally favorable conditions during the Brisk winter weather has stimulated holiday month are marred only by increasing diffi- trade, and buying is in very substantial culties resulting from the car shortage and volume, but with an evident disposition on traffic situation. Many lines of activity are the part of purchasers to exercise caution and seriously hampered, and because of the neces- conservatism. The condition of trade at sity of conserving car supply in order to meet country points is substantial evidence of the the imperative needs of their own territory buying power of the farmers and the degree the respective northwestern lines are placing to which they have profited by the extremely increased restrictions upon the movement of high prices for all farm products. equipment eastward and upon eastbound Grain prices broke sharply on the midshipments. December peace talk, and have since shown a The milling and elevator situation through- considerable fluctuation, although with some out the entire district is unfavorable, and ter- recovery. From the reports at hand, and other minal elevators, especially, are not alone con- reliable information, it would appear that the gested with grain, but are severely handicapped bulk of the 1916 crop, together with a large by the increasing difficulty of obtaining and proportion of the old wheat held over from moving cars. This situation coupled with last year, has already moved, the larger part severe weather during the third week of the of it during the period of high prices. month caused the slowing down of lines that Elevator stocks are considerably increased are dependent upon the car supply. The rail- over a year ago. A considerable amount of roads have acted promptly and are putting hard southwestern wheat is being brought in forth every effort to minimize the embarrass- for milling purposes, and the larger milling ment to shippers, but have had poor results in concerns have been compelled to take the their efforts to secure the return of equipment position that they will not buy carloads except now on eastern lines and at Atlantic terminals. in care that can be reloaded with flour and The demand upon banks at urban centers is mill stuffs. By this process they have been very satisfactory, and there are indications of able to obtain some relief, although the yards Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

JANUARY 1, 1917. FEDERAL RESERVE BULLETIN. 49 are crowded with loads and the mills are filled homa reports an acreage of almost 3,000,000, to capacity with finished products that can an average decrease for the State of 5 per cent, not be moved. Some of the larger concerns with growing condition 84 per cent. In spite have put their mills on part time, with the of transportation difficulties, it is believed that prospect that they may be compelled to close the amount of wheat hoarded in farmers' bins down entirely if the situation does not shortly has been materially reduced. improve. All live-stock markets of the district were Business opinion is that the outlook for considerably hampered late in November b}r 1917 is favorable. Most observers agree that | the appearance of a suspected case of foot-andduring the remainder of the winter and the mouth disease in the Kansas City stockyards. early spring trade should continue in good Last year's epidemic took from Federal and volume. Favorable spring planting weather State treasuries $9,000,000, in addition to will be a sufficient guaranty of continued further losses of owners. As a consequence prosperity during the first half of the coming every precaution was taken. Immediate oryear, especially in view of the fact that the ders were issued prohibiting the shipment of farmers went into the winter with a much any stock from the Kansas City and St. Joseph larger amount of work accomplished than in stockyards, except for immediate slaughter. ordinary years. Expert observation failing to reveal well-defined symptoms of the disease, the quarantine DISTRICT NO. 10—KANSAS CITY. was lifted at the end of November. Beef steer Latest reports but confirm the increasing prices in that month reached the highest level commercial records of the year, with no seri- ever known. All classes of killer kinds sold ously deterrent features. high, grass-fat cows from the western ranges The period was generally favorable to agri- selling at prices never obtained before, and culture and particularly to husking and market- old cows for canning purposes selling especially ing corn and shipment of live stock, Freezing high for that class. The demand for cattle temperatures caused immaterial crop damage. to go back to the country continues good, with Necessary precipitation was lacking in some steady prices. The five weeks ending Decemsections. From the highest temperature ever ber 2 showed a considerable increase of hogs recorded in Oklahoma early in the month of slaughtered at all packing centers in the dis- December, the middle of that month showed a trict, severe drop with the lowest temperature in With flour high in price, bread increasing in 15 years, for this season of the year, reported cost, and milk, butter, eggs and other comfrom Kansas, followed by a heavy snow, in modities steadily increasing, the problem of limited areas, of much benefit to the wheat. living has become increasingly serious. There Considerable interest attaches at this time is every indication of a coal shortage if cold to the condition and acreage of the winter weather continues, and the price has become wheat. From State reports available, Kansas almost prohibitive. The situation in Oklais shown to have an acreage of approximately homa is especially threatening, the settlement 9,000,000, or 3 per cent more than seeded a of the coal strike there and the arrival of an year ago, with an average growing condition of early blizzard having brought a flood of orders 75.9 per cent, which is 12.5 per cent lower than which the mines, reopening after a two weeks7 at this time last year and lower than the shutdown, are unable to fill. The continu- December condition for each of the past five ance of the car shortage is also having its years. Nebraska shows an acreage in excess effect. of 3,000,000, 5 per cent greater than last year, Retail business continues to show a marked and a growing condition of 85 per cent. Okla- improvement over the corresponding period of Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

50 FEDERAL RESERVE BULLETIN. JANUARY 1, 19.1.7. last year. Merchandise is high and scarce in crop JQSLY ending June 30, 1916, figures being manufacturers' hands, but those retailers who in total flour production: are able to finance themselves are carrying largo stocks, many having anticipated their j 1900 census1909 census 1916 • (barrels). (barrels). (barrels). needs in order to save the advances. Clothiers report an increase, in volume of business of i Kansas i 5 000,000 10,879,000 112,213,447 approximately 25 per cent over last year, and Nebraska : 1,821,000 2,264,000 3,500,000 Oklahoma ' 975,000 2,199,000 2,500,000 the favorable weather for hcav}^ merchandise Colorado * 975,000 1,500,000 Western Missouri ; 3,000,000 will doubtless bring further increases. Retail Total ' 22,713,447 jewelers report an excellent holiday trade, but 1 with increased costs and expenses claim about i Exact. Other amounts in this column estimated. the same percentage of profits. General mer- The production for 1916 would have been cantile stores are doing the largest volume of increased materially but for the very poor business in their histor}^. quality of wheat which mills had to grind. Wholesalers advise that an abnormal vol- Current milling conditions in this territory are ume of business continues, with the outlook for exceptionally healthy. The general financial the next six months very good indeed, but are position of milling enterprises is strong and slow in prophesying after that period. One of millers have never before enjoyed such security the largest wholesalers in furniture, carpets, in their credits. The fundamental soundness and house decorations, however, reports that of the industry has resulted in such paper orders arc being booked from their regular becoming standard in eastern markets, and customers with less success than the corre- local bankers have come to look upon it with sponding period of last year, claiming that the more favor because of their direct knowledge of country merchant is hesitating to pay tho the business. advanced prices. The retail lumber trade continues to enjoy a The implement business continues highly volume of business much larger than last year satisfactory, notwithstanding the general ad- and beyond expectations. Cement consumpvance, orders being placed quite freely, dealers' tion has amounted to about 20 per cent more stocks having been well cleaned up last year. than in 1915, and more of this product is selling The announcement of further advances in this than is usual at this time of year, while there is line has had the direct result of stimulating much more business in prospect for 1917 than contracting. for 1916 at this time-last year. The use of The flour milling industry has every reason cement in road building is increasing rapidly. to view the trend of eastern trade with a Engineering and building operations continue marked degree of satisfaction, even though strong. The increase in building permits ground for entire complacency may be still issued is a repetition of the increases shown by lacking. A steady stream of flour has been months with corresponding months last year. flowing eastward from the mills of Kansas, Collections in all lines are reported on a Oklahoma, Nebraska, and other States have parity with sales, and even exceeding them in been contributing their proportion. It is many instances. conceded that more winter wheat flour has Advancement in mining in Colorado has been sent to eastern markets than ever before been steady. Production is being resumed in in the history of the industr}^ many long idle districts. The zinc centers are The following table shows, so far as figures establishing a new high water mark of producare available, the census statistics on milling tion. The big drainage projects are reaping in this district for 1900 and 1909 as compared the reward of industry, and ore from freshly with a reliable estimate of the output for the drained ground is now a material factor in the Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

JANUARY 1, 1917. FEDERAL RESERVE BULLETIN. 51 daily production. There have been few new The trend of bank clearings at leading cities strikes on the surface this season, but there in the district for the month of November, and have been several ore discoveries in old-time for the first eleven months of 191*6, as compared producers that are important. The first under- with the same periods of 1915, continues upground concentrating mill in the world will ward, as indicated by the following percentages soon be ready for operation in Ouray County, of increase : Colo., which will end delays caused by snow slides or deep snows, which have heretofore hindered operations at this point. The total City. No b v e e r. m- m E o le n v t e h n s. value of ore production in the Joplin (Kansas- Denvcr 27.9 33.7 Oklahoma-Missouri) district has now gone Kansas City 33.6 28.3 over the $31,000,000 mark. The increase in L M i u n s c k o o ln geo 4 2 1 9 . . 1 1 3 6 2 2 . . 0 7 price has again encouraged development work, O O k m l a a h h a oma City. 8 3 2 6 . . 6 8 6 2 9 9 . . 5 5 and new mines are being frequently opened. Pueblo 26.6 12.0 St. Joseph 30.6 31.5 The value of this year's production should go Topeka 28.6 21.0 Wichita 20.1 31.2 at least $8,000,000 above last year's. In this district interest centers in the Miami, Okla., Reports of bank deposits and post-office fields, where 500 drill rigs are now pounding receipts continue to show remarkable gains. day and night in search of new ore. Joplin, the While there is slight evidence of increased metropolis of this mining district, is expedemand for loanable funds, no material change riencing marked prosperity. has been made in rates of discount. The year The predicted gradual increase in the price 1916 has witnessed a general plethora of loanof crude oil in Kansas and Oklahoma was partly able funds, everyone has had plenty of work realized when an advance of 10 cents per barrel at good wages, business has thriven, new inwas announced on December 12, and a similar dustries are making rapid strides, and crops, increase on December 18, crude oil now bringwhile below normal in production, have had ing $1.20 per barrel, with further increases greater value than for years, and these condibeing freely predicted. Production double tions are reflected in all the commercial activithat of 1915, when it amounted to 4,212,000 ties of the district. barrels, is freely predicted for the current year. The past six months have witnessed much real DISTRICT NO. 11—DALLAS. progress and development in these fields. Merchants are enjoying a holiday business Considering the strained relations between almost unprecedented in volume, and, notemployers and labor, as evidenced in reports withstanding the prices of merchandise are from various parts of the country, conditions much higher than those of past years, buying in this territory may be said to be unusually is unusually heavy. Ideal weather conditions satisfactory. Voluntary wage increases and have prevailed and have contributed to make bonuses are the order of the day and there are the Christmas shopping season active. With no disturbances worthy of note. Welfare or- the activity with retailers there is inclined to ganizations are having less calls for assistance be a lull in the wholesale and jobbing business and less difficulty in administering to the wants and the orders now being handled are for the of those in need than usual at this time of the most part emergency ones and to build up deyear. pleted stocks of merchandise, which will doubt- Taking all things into consideration, rail- less continue until after the new year. road earnings can be said to continue satisfac- The car situation shows improvement but is tory. still far from normal. Collections in all lines Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

52 FEDERAL RESERVE BULLETIN. JANUARY 1, 1917. are reported as good or much better than last below the loans and discounts and deposits of year. the banks in the reserve cities of Texas on There is some preparation of land for crops November 10,1915, and on November 17,1916, the coming year. Reports indicate that with dates'of the comptroller's call, for comparison: the high prices realized for cotton the past season, there will be a tendency to increase the Increase. acreage. This is a condition which is being Nov. 10,1915. | Nov. 17,1916. Per discouraged as much as possible. Winter Amount. cent. wheat is in good condition over most of the district. Some sections, however, report that Loans and discounts.. $92,352,000 |3126,034,000 i $33,682,000 Deposits 117,151,000 202,706,000 • 85,555,000 73 rain is badly needed and that there is not sufficient moisture in the ground to bring up winter There is also shown the percentages of infeed crops. The farmers throughout the rice crease of deposits for the same period: Dallas, belt have enjoyed the most profitable season 84 per cent; Fort Worth, 87 per cent; Galveston, in 15 years. This has enabled them to liqui- 65 per cent; Houston, 69 per cent; San Antonio, date their debts and to go into the new crop 52 per cent; Waco, 74 per cent. year in excellent condition. Reports indicate The State banks of Texas also show a heavy that the acreage planted in rice the coming increase in deposits for the same period, the season will be materially increased. The rice figures being: November 10,1915, $101,164,854; yield for the States of Texas, Louisiana, and November 17, 1916, $163,026,267; increase, Arkansas averaged approximately 11 bags per $61,861,413; per cent increase, 61. acre, which is equivalent to approximately 50 An increase of $45,048,763 is shown in the bushels per acre. The crop was marketed at deposits of the State banks on November 17, an average price of 93 cents per bushel. 1916, over the call of September 12 1916. ; In the extreme southwestern part of the Clearings of the principal cities in the district district weather conditions have been ideal and for November, 1915 and 1916, and for the eleven have enabled the uninterrupted harvest of months ending November 30 of the two years, sugar cane, which has been going along at a are as follows: November, 1915, $180,579,749; very satisfactory pace for the past three weeks November, 1916, $252,317,732; increase, $71,and which should continue for about six weeks 737,983; per cent increase, 39. longer. For eleven months ending November 30, Financial conditions show no material 1915, $1,553,406,378; November 30, 1916, change. The comptroller's call of November $1,953,774,173; increase, $400,367,795; per 17 brought out the generally satisfactory condi- cent increase, 26. tion of member banks, and a comparison of There were handled in the district clearing the calls of November 17, this year, with the house for the period November 16, 1916, to call of November 10, last .year, brings out some December 15, 1916 (25 business days), 318,364 interesting figures. There is still little demand items, aggregating $163,030,885, or a daily for loanable funds, and outside investments and average of 12,734 items, aggregating $6,~ the purchase of commercial paper and bonds 521,234. For the period, October 16, 1916, to continue to be sought as a means of employ- November 15, 1916 (25 business days), there ment for idle funds. There is some evidence were handled 340,952 items, aggregating $175,that banks in the western and southwestern 574,192, or a daily average of 13,638 items, part of the district are having a rather active aggregating $7,022,967. It will be seen, theredemand for funds, principally from cattlemen, fore, that there was a slight decrease in the and that the credit conditions are keeping pace number and amount of items handled in the with the financial situation. There is shown past 30 days. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

JANUARY 1,1917. FEDEBAL BESEBVE BULLETIN. 53 Reports indicate some dullness in building fields and the time consumed in effecting new operations. There is shown below the number contracts with the miners have caused a limand valuation of permits issued in the principal ited output and advanced prices, which we cities of the district for the month of November, understand are better than for several years. 1916, as compared with November, 1915— Post office receipts at 8 of the principal cities 1915: Number, 980; amount, $1,001,291. 1916: of the district show an increase of 19 per cent Number, 749: amount, $1,199,018. Increase, for the month of November over similar period $197,727; per cent increase, 20. of last year. With two exceptions, the cities Considering the season of the }rear, manufac- reporting show good increases. With the turers and dealers in building materials advise immense parcel-post business now being that the volume is satisfactory and better than handled, the post offices in the larger cities in 1915. Reports indicate that demand for have found it necessary to provide additional building brick, hollow tile, and fire brick is good space and put on extra help to care for the same. and material manufacturers are satisfied with The figures are: 1915, $290,410.43; 1916, $346,the volume. Collections in building lines are 138.96; increase, $55,728.53; per cent increase, reported as good, and one firm reports that they 19. will have less loss in accounts than ever before. During the past 30 days the live stock busi- Some improvement is reported in the lumber ness, both range and market conditions, has business from the manufacturers' standpoint. been active and satisfactory. At the Fort Prices are around $3 per thousand higher than Worth market, the largest in the district, the three months ago and demand continues good heavy receipts of cattle, hogs, and sheep have in spite of the increase in shipments caused by been readily absorbed by packers, stockers, the improvement in the local car supply. The and traders. Only a limited supply of fat shortage of cars in this line is still felt. One cattle has been received; also limited consignlarge manufacturer reports that the supply ments of grass-fattened cattle from south is probably 90 per cent of normal. Export Texas. Good prices have obtained for such buyers of lumber are active and are placing live stock at from $7.50 to $7.75 per hundred. good orders with the mills. On account of the very high prices of feed, Reports from the oil fields of Louisiana and particularly cotton seed, cake, meal, and hulls, Texas continue to be quite favorable. New there is practically no full feeding of cattle in wells are being brought in in territory hereto- Texas. Live stock men report that this indifore undeveloped, and many of the established cates high prices for fat stock in the early companies are making arrangements to do a spring months. The range conditions are gengreat deal of drilling. Authorities consulted erally good except that in some sections, particstated that in their opinion the industry in this ularly the Panhandle and the far West, reports district is on a settled basis and there is less are that rain is badly needed. Range cattle speculation than ever before; that the fields are reported to be in good condition and are are being operated in an intelligent manner and going through the winter in good shape. There the day of speculation is rapidly passing. New is shown below a statement of the live stock gas wells are also being opened up. Reports receipts at the Fort Worth market for Novemfrom the Louisiana fields particularly indicate ber, 1916, and November, 1915, also for the the largest producing wells the field has over eleven months of each year ending November known. 30. Quite a substantial increase is shown-in The curtailed output of the coal mines has each case. Especially is this true as regards caused an advance in the price of coal and diffihogs, the receipts showing nearly 100 per cent culty is being experienced in obtaining supincrease over last plies. The threatened strike in the Oklahoma Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

54 FEDERAL RESERVE BULLETIN. JANUARY 1, 1917. Exports from the port of Galveston for November. Jan. 1 to Dec. 1. the month of November, 1916, aggregated $41,252,024, and for the same period a year 1916 1915 1916 1915 ago the aggregate was $16,767,905, or an Cattle 108,499 88,753 822,436 740,070 increase of $24,484,119, or 146 per cent. The Calves 28,604 24,309 157,619 140,379 Hogs ... 75,322 40,336 880,464 422,483 principal commodities making up this large Sheep 16,317 12, 748 395,173 353,740 Horses and mules 8,351 ' 5,583 71,939 48,831 increase are cotton shipped to France, Italy, _l Spain, Switzerland, and England; shipments of Reports from the sections of the district spelter to England, and wheat to Belgium. where the sheep industry is most important Exports to Cuba and Mexico in November of indicate that the wool has been practically, all this year have likewise shown substantial inmarketed and that there is little trading in creases over the same period a year ago. that business at this time. Eeports from Failures in the district from November 16, San Angelo indicate that the outlook for the 1916, to December 15, 1916, were 39, with wool business in the spring is extremely good liabilities aggregating $258,654. For the simiand it is anticipated that the price will be the lar period of last year they were 52, with highest ever paid in that section; that the sheep liabilities aggregating $1,000,873. are all fat and free from disease and the clip promises to be an exceedingly large one, free DISTRICT NO. 12—SAN FRANCISCO. of dirt and of excellent quality. Notwithstanding adverse weather conditions There is a temporary lull in wholesale and during the fall months, when it was impossible jobbing trades due principally to the fact that for wheat growers to seed the acreage intended, holiday orders have been filled and retailers there was nevertheless an increased planting of are busy with that trade. Wholesalers have winter wheat in the Northwestern States over already begun to book a few orders for spring that of last season, about 2,500,000 acres being delivery and the outstanding feature has been sown. California reports indicate that more the inability to secure stocks of merchandise on barley is being planted this year than ever account of the scarcity of raw materials. The before. The cost of seed is the highest since large mail-order houses continue to show a 1904. Recent rains have been of great value heavy increase in trade and have been worked to all grains. to their capacity. Frosts which occurred about the middle of Passenger traffic is good for this season and November caused an estimated loss of 5,000 some increase is reported over last year. For bales of cotton in southern California. The the month of November the interurban lines estimated crop is 60,000 bales. Eecord prices enjoyed an increase in business over the same have been received for cotton. month a year ago of approximately 18 per Prices for citrus fruit for the Christmas marcent. Freight officials report that the car ket were unusually high and netted the growers situation continues serious. large returns. The shortage of cars has badly With the exception of changes to be expected hampered this industry as well as others. at this season, the labor situation is practically Because of delay in shipment, much fruit was the same as reported in our previous letter, allowed to remain on the trees in central and and there is no evidence of any large number of northern California and suffered somewhat unemployed. In the building trade, as is to be from frosts occurring in the early part of Deexpected during this part of the year, there is cember. Citrus fruit in southern California was the usual percentage of men out of work, but little damaged. which is a condition that will continue until The demand for apples was not as great this the spring building activity commences. year as is usual during the preholiday period Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

JANUARY .1,1917. FEDERAL RESERVE BULLETIN. 55 and prices fell off appreciably. Stocks in stor- Lumbering has not shown any great change age in the Northwest are not as large as they during the past month. Prices have held firm were a year ago, but the uncertainty in the except in redwood which declined about $1 market and lack of transportation facilities per thousand. Some of the sawmills in the have depressed prices. Northwest have been forced to turn away The bean crop has been shipped and has orders and curtail production on account of netted large returns, due to prices made high car shortage. There has been a constant acby a shortage in the Eastern crop. cumulation of orders for shipment by rail, the The sugar-beet acreage harvested in this dis- aggregate on December 12 amounting to trict in 1916 was 25 per cent larger than that 11,831 cars, which is said to be the record of 1915; the 1916 price averaged about $6 per figure for the Pacific Northwest. ton, compared to $5.40 per ton for 1915. Ha- Mining in this district continues its extreme waii's cane-sugar crop for 1917 is estimated at activity. The mineral output of the seven 575,000 to 625,000 tons. The Hawaiian sugar States composing this district was valued at production during the year ending September over $300,000,000 in 1915 and due to high, 30, 1916, was 593,000 tons. It is estimated prices for all metals and the increased activity that the United States produces sufficient beet in this industry, this figure should be largely sugar to supply about one-fourth of the total exceeded in 1916. consumed by this country; Porto Rico, Hawaii, The November petroleum production of and the Philippines supply another fourth in 263,209 barrels daily is a decline of 3,311 cane sugar, leaving us dependent upon other barrels daily compared with October, while sources for only one-half of our requirements, shipments of 310,008 barrels daily is a new amounting to more than 4,000,000 tons per high record and an average daily increase of annum. 6,356 barrels over October. Crude oil stocks Of the 75,000 acres planted to rice in 1916, a on November 30 totalled 45,914,181 barrels. little over 60,000 acres will be harvested, the It is estimated that California's petroleum proremainder having failed to mature. Much duction for 1916 is 93,000,000 barrels, an excess damage was done by early rains and heavy of more than 2,000,000 barrels over last year. winds. A few early sales were reported at $1.75 Consumption, however, aggregates more than per hundred, but many farmers have preferred 103,000,000 barrels, stored stocks having in to hold their crop anticipating better prices. consequence been reduced by more than Dairying is becoming of more and more im- 10,000,000 barrels. The value of this year's portance each year. In California alone the petroleum production is placed at $49,000,000. value of dairy products for the year ending New wells opened during this year have been September 30, 1916, was over $40,000,000. twice as many as last year. This district is at present exporting large Building permits in 19 leading cities of this quantities of condensed milk. Due to the fact district in November, 1916, show an increase that the war has closed other channels, the of 8 per cent over" November, 1915, while the United States is shipping condensed milk into first 11 months of 1916 show an increase of 20 many new markets. per cent over a corresponding period in 1915. Prices for meat products are higher. For Clearings for the same cities for November, the first time in many months shipments have 1916, show a 40 per cent increase over Novemrecently been made from Idaho and Nevada to ber of last year. Salt Lake City, Spokane, coast points. Hitherto all meats from Idaho and Seattle show the largest percentages of have been shipped East because of higher increase, each showing over 50 per cent prices. increase. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

56 FEDERAL RESERVE BULLETIN. ."IA.VI.-ARY J, i::>iT. Charter rates show little change over those per cent over the last report and 22 per cent of a month ago. Exports from Pacific coast increase over the corresponding report last ports for the month of November, 1916, show a year. Total resources of all member banks in 50 per cent increase over November, 1915, while this district are approximately $180,000,000 imports have increased about 25 per cent. j more than on November 10, 1915, or an in- Seven new shipbuilding companies have been \ crease of 20 per cent during the year. started on the Pacific coast within the past j Because of the war this district has profited few weeks, two for steel ships and five for |from high prices from many of its products, wooden ships. Japanese tonnage continues to j such as copper and other metals, live stock, increase, although constituting a smaller per- | grain, etc. Its industries, however, with an centage of the total tonnage on the Pacific | occasional notable exception, such as in shipthan a few months ago because of the increase jbuilding, have not been enlivened as in the in the shipping of other countries, including • East. With a cessation of the stimulus in cerour own. tain lines from the termination of the war other Deposits of the 521 national banks in the industries, such as lumbering, should have twelfth Federal Reserve district at the date counterbalancing increase of activity. It seems of the last comptroller's call, November 17, ! probable that the transition from a war condiaggregating §857,000,000, show an increase of j tion to one of peace will be marked by mini- 10 per cent over the September 12 report, and I mum disturbance of the conditions of prosan increase of 27 per cent over a year ago. \ perity now prevailing quite generally through- Loans and discounts show an increase of 6 j out this district. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

JANC'AIiY 3, 1917. FEDERAL RESERVE BULLETIN. 57 DISTRIBUTION OF DISCOUNTED PAPER, Iclass of paper. The total of trade accept- BY CLASSES, SIZES, AND.MATURITIES, jances discounted since September, 1915, is $5,986,700, Richmond and Atlanta together Commercial paper discounted by the Federal reporting over 60 per cent of the total. Reserve Banks during November, 1916, totaled $17,904,100, compared with $11,862,900 dis- Notwithstanding the considerable increase counted in October, 1916, and $18,269,700 in in amount, the number of bills discounted November, 1915. Nearly 60 per cent of the during November is about 1,000 below the November discounts is credited to the Federal October total, the smallest monthly total re- Reserve Banks of Boston and Philadelphia, ported until then. As a result the average where some of the leading local banks redis- size of the paper discounted during Novemcounted in some volume during the month ber, about $6,000, is nearly twice as large as under discussion. Discount operations of the the October average, while like averages for three southern banks totaled $2,958,700, or a Boston and Philadelphia run in excess of little over 16 per cent of the total discounts for $24,000. This of course is due to the larger the month, as against 65 per cent in November, size of the discounts of both customers' paper 1915. Discounts of the Federal Reserve Banks and member banks' collateral notes handled for the 11 months in 1916 totaled $144,154,200, for the large city banks accommodated by compared with $145,941,000 for the same these two reserve banks. As a matter of period in 1915. fact, 86 per cent of the total November discounts of the Boston Reserve Bank and about Of the total discounts for the month 92 per cent of the total discounts of the Phila- $5,587,900 is represented by advances to 11 member banks upon their own notes secured delphia Reserve Bank are represented by by commercial paper, $1,047,000 by commodity largest-size bills (of over $10,000 each). The paper, and $828,600 by trade acceptances proportion of the largest-size notes for the (two-name paper). The aggregate of these system is over 69 per cent, as against 45 per three classes of paper, discounted at preferen- cent shown for October, 1916, and 22 per cent tial, i. e., lower than ordinary rates, is for November, 1915. The share of the monthly $7,463,500, or about 42 per cent of the total discounts of medium-size notes (in denomidiscounts for the month. About 70 per cent nations of over $1,000 to $5,000) is not quite of all member banks7 collateral notes dis- 17 per cent, as against 31 per cent for the counted during the month is reported by the month before and 47.5 per cent for November, Philadelphia and Chicago banks. 1915. Small notes (in amounts up to $250) Of the total amount of commodity paper constituted over 12 per cent of the total numdiscounted during November by four banks, ber, though only about 0.3 per cent of the over 84 per cent was handled by Richmond amount of bills diseounted during the month. and Atlanta, including the New Orleans The general rule that the larger-size bills branch. Commodity paper discounted during are of the shorter maturity class is borne out the first 11 months of the present year totaled by the November discount figures, which indi- $15,996,500, of which over 87 per cent was cate that of the total discounts for the month, cotton paper, handled mostly by the Richmond 42 per cent was 10-day paper, i. e maturing and Atlanta banks. Discounts of trade ac- v within 10 days from the date of discount by ceptances (two-name paper) for the month, the Federal Reserve Banks. In the case of $828,600, were larger than for any previous the Philadelphia and Boston banks these month since the special rates for this class of shares are as high as 62 and 69 per cent. The paper first became effective in September, share of 30-day paper was 33.4 per cent; that 1915. Boston, and New York for the first of 60-day paper 9.1 per cent, and that of 90time report discounts in some volume of this Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

58 FEDERAL RESERVE BULLETIN. JANUARY 1,1917. day paper 10.6 per cent. November dis- Of the 7,628 member banks, reported at the. counts of agricultural and live-stock paper end of November, only 336, or less than 5 per maturing after 90 days at the time of redis- cent, are shown to have rediscounted during count .with the Federal Reserve Banks (6- the month with Federal Reserve Banks. The month paper) totaled $884,900, Richmond largest number for the month, just as for Chicago, and Minneapolis together taking October, is reported by the Chicago district, nearly 75 per cent of this class of paper. where a considerable number of banks in the On the last Friday of the month the banks country districts, mainly in Iowa, is being held a total of $20,499,600 of discounted pa- accommodated through the discount of farmper, as against $21,130,700 shown about the ers' paper. The number of rediscounting end of October and $32,794,300 on the cor- banks in the three Southern districts was 104 responding date in 1915. Less than 33 per for November, compared with 159 the month cent, as against over 62 per cent on November before and 438 for November, 1915. Dallas 26, 1915, is represented by the holdings of the reports the smallest number of member banks three Southern banks. accommodated during the month. Commercial paper, exclusive of bankers' acceptances, discounted by each Federal Reserve Bank during the month of November, 1916, distributed by sizes. NUMBER OF PIECES AND AMOUNTS. [In thousands of dollars.] Over To $100.$1 $ 0 25 0 0 t . o O to v e $ r 5 $ 0 2 0 5 . 0 v O to v v u $ e i 1 r , v 0 $ o 0 5 K 0 0 0 . jy j O t w o v e e t $ r 2 , $ 5 O 1 0 X , 0 , 0 V . 0 AJ 0 O to v e $ r 5 , $ 0 2 0 ,5 0 0 . 0 O to v e $ r 1 0 $ ,0 5 0 ,0 0 0 . 0 $1 O 0 v ,0 e 0 r 0. Total. Per cent. Banks. m s B% B 2* Boston 0.2 2.5 2.5 13! 11. 21 34.4 316.1 567.6 5,931.3 283 6,865.6 9.538.3 $24,260 New York. 1.3 4.4! 121 9.5; 18 27.5 29.1 75.2 568.3 79 715.3 2.6 4.0 9,050 Philadelphia 3.7 9.9 26! 204.i 14 25.0 110.0 106.0 3,140.0 140 3,415.0 4.7 19.1 24,390 Cleveland 4.6 2.0 14; 7.3j 9 18.1 18.0 30.0 25.1 81 106.0 2.7 .6 1,310 Richmond 9.7 36.9 150117.2 127 217.1 445.5 279.1 357.0 587 1,463.1 19.7 8.2 2,490 Atlanta, including New Orleans branch 5.5 25.7 7l! 57.1 133.5 303.1 248. 8 381 1,338.812.8 7.5 3,510 Chicago 39 10319.0 65.6 189| 150.3 312.5 302.4 120.6 1,062.1 7802,036.426.1 11.4 2,610 St. Louis 2 2.2| 19 14.0 57.5 97.8 176.4 664.4 111,1,012.8 3.7 5.7 9,120 Minneapolis 31 21.9 82, 56.9 146.2 97.8 37.3 35.3 308 401.3 10.3 2.2 1,300 Kansas City 1 9.5 41 28.9 70.9 41.2 40.4 20.0 137 211.3 4.6 1.2 1,540 Dallas 3! 2.7 27.1 63.8 52.0 11.2 44 156.8 1.5 .8 3,560 San Francisco .5 21 1.6 44.0 67.6 68.0 54 181.7 1.8 1.0 3,360 Total. 78 7.1 290 52.8j 453 181.1 2:476.9 6651,113.8 4661,892.4 21lil,801.4 200 12,378.6 2,985 17,904.1100.0 100.0 6,000 PERCENTAGES OF AMOUNTS OF EACH CLASS TO TOTAL. Banks. To $100. Over $100 Over $250 Over $500 Over $1,000 Over $2,500 Over $5,000 Over Total. to S250. to $500. to $1,000. to $2,500. to $5,000. to $10,000. $10,000. - Boston 0 2 0 5 4 6 8.3 86.4 100.0 New York °1 0.6 1.3 3.8 4.1 10.6 79.4 100.0 Philadelphia .3 .6 .7 3.2 3.1 92.0 100.0 Cleveland 6.8 4 3 1 9 6 9 17 1 17 0 28 3 23.7 100.0 Richmond •i .6 2.5 8.0 14.8 30.3 19.0 24.4 100.0 Atlanta. 4 1 9 4 3 10 0 22 6 18 6 42 1 100.0 Chicago 2 .9 3.2 7.4 15.4 14.9 5.9 52.1 100.0 St. Louis 2 1 4 5 7 9 6 17 5 65 6 100.0 Minneapolis i 4 5 5 14 2 36 4 24 4 9.3 8.8 100.0 Kansas City .1 4.5 13.7 33.6 19.5 19.1 9.4 100.0 Dallas 1 7 17 3 40 7 33.2 7.1 100.0 San Francisco " .3 .9 24.2 37.2 37.4 100.0 Total .3 1.0 17 6.2 10.6 10.1 69.1 100.0 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

JANUARY 1,1917. FEDERAL RESERVE BULLETIN. 59 Commercial paper discounted during November, 1916, by each Federal Reserve Bank, distributed by States and maturities as of date of discount. [In thousands of dollars.] Maturities Total Number Number Districts and States. m b e a m n of k b s e . r m o a f o c b c d o a a m n te k - d s . 1 W 0 i d t a h y in s. Fr d t o o a m y 3 s 0 1 . 1 Fr d t o o a m y 6 s 0 3 . 1 F d r t o o a m y 9 s 0 6 . 1 90 A d ft a e y r s. c c i o a u l d n i p s t a - e p d e . r District No. 1—Boston: Connecticut 50 2 10.0 113.3 23.0 205.0 351.3 Maine. 67 1 7.3 2.5 9.8 Massachusetts... . 158 14 4,710.7 1,762.3 10.5 3.6 G, 487.1 New Hampshire 56 Rhode Island .. 17 Vermont 48 2 8.5 3.9 5.0 17.4 Total 402 19 4,729.2 1,879.5 45.8 211.1 6,865.6 District No. 2—New York: i Connecticut 15 New Jersey . 129 4 .3 49.2 20.9 4.2 74.6 New York 481 7 319.6 80.4 236.0 4.7 64.0.7 Total 625 11 .3 368.8 101.3 240.2 4.7 715.3 District No. 3—Philadelphia: j Delaware 24 New Jersey 72 4 29.4 53.5 3.5 86.4 Pennsylvania 535 8 2,092.5 1,220.1 5.7 10.3 3,328.6 Total 631 12 2,121.9 1,273.6 9.2 10.3 3,415.0 District No. 4-Cleveland: Kentucky 68 2 13.2 4.0 17.2 Ohio 374 9 2.5 32.7 11.8 30.5 6.3 83.8 P ennsy Ivan ia 299 1 5.0 5.0 West Virginia .'... 13 Total 754 12 2.5 37.7 25.0 34.5 6.3 106.0 District No. 5—Richmond: District of Columbia . . 15 Marvland 96 North Carolina 81 16 6.9 114.6 205.2 236.6 202.0 765.3 South Carolina 79 20 14.1 227.9 170.0 194.7 9.4 616.1 Virginia . 146 3 17.6 14.0 15.5 47.1 West Virginia 103 2 19.2 15.4 34.6 Total „ 520 41 21.0 360.1 408.4 462.2 211.4 1,463.1 District No. 6—Atlanta: Alabama . . 93 18 37.4 208.8 81.5 224.6 7.5 559.8 Florida 55 10 118.4 51.1 38.0 4.2 211.7 Georgia 110 12 33.2 71.5 182.8 287.5 21 Mississippi . .. 18 4 42.8 87.2 8.7 3.4 m 142.1 Tennessee 92 11 25.4 44.9 47.8 19.6 137.7 Total : 389 55 80.2 473.0 257.7 496.6 31.3 1,338.8 District No. 7—Chicago: Illinois 316 18 12.5 1,090.5 93.4 3S6 43.9 1,278.9 Indiana 196 7 23.3 18.2 16.7 6.4 2.7 67.3 Iowa 353 57 1.0 167.8 196.7 103.0 174.2 642.7 Michigan 76 2 9.7 15.2 21 3 1.3 47 5 Wisconsin 52 Total 993 84 46.5 1,291.7 328.1 149.3 220.8 2,036.4 District No. 8—St. Louis: i Ark&ns&s 67 Illinois 157 8 3.5 61.8 13.2 ;•;* 80.0 Indiana 61 3 2.2 23.0 42.3 2.1 69.6 Kentuokv 67 5 425.8 9.6 2.8 1.8 440 0 Mississippi 18 2 7.5 21.7 29.2 Missouri 80 4 5.8 34.9 1 5 42 2 Tennessee 20 3 79.0 206.6 66.2 351.8 Total 470 25 504.8 219.8 188.1 93.2 6.9 1,012.8 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

60 FEDERAL RESERVE BULLETIN. JANUARY 1,1917. Commercial paper discounted during November, 1916, by each Federal Reserve Bank, distributed by States and maturities as of date of discount—Continued. Maturities Number Number Total Districts and States. m b e a m n of k b s e . r m o a f o c c b d o a a m n te k - d s . 1 W 0 i d t a h y in s. Fr d t o o a m y 3 s 0 1 . 1 Fr d t o o a m y 6 s 0 . 31 Fr d t o o a m y 9 s 0 6 . 1 90 A d ft a e y r s. c c i o a u l n p t a e p d e . r District No. 9—Minneapolis: 32 Minnesota • 285 23 . . .1 ii.2 67.7 26 7 135.7 241 3 Montana . 76 North Dakota 155 6 9.8 .4 Q 33.7 44 7 South Dakota » 125 8 33,4 28.7 50.2 112.3 Wisconsin 88 1 3.0 3.0 Total 761 38 9.8 14.6 101.9 55.4 219. 6 401.3 District No. 10—Kansas City: Colorado 122 1 10.0 10 0 Kansas . - ...... 222 4 1.8 37.8 11.1 16.6 67 ?> Missouri 54 3 2.1 2.8 5 9 9 9 20 7 Nebraska • - - - - 194 9 26.1 15.2 22.7 39.9 103 9 New Mexico 9 0 Oklahoma 304 3 .1 3.3 6.0 9.4 Wyoming 36 0 Total 941 20 40.0 55.9 43.0 72.4 211. 3 District No. 11—Dallas: Arizona. 6 IjOiiisia,n9, . - - 11 NGW "Mpvico 28 2 9.1 13.7 33.5 50.3 Oklahoma - - - 33 Texas - 543 6 ii.3 14.0 75.2 100. 5 Total 621 8 11.3 23.1 13.7 108.7 150. S District No. 12—San Francisco: A laska 1 \rizona*. 7 California 262 8 4.0 7.6 49.5 67. i 2.7 130 ;} Idaho - 58 Nevada, * 10 Oregon 82 2 6.0 10.0 16 0 Utah - 23 Washington 78 i 26.1 9.3 35.4 Total 521 li 4.0 j 7.0 81.6 86. 4 2.7 181. 7 "ItECAPITULATION. [In thousands of dollars.] Maturities. Number Number | I Total Districts and cities. m b e a m n of k b s e . r m o a f o c b d c a o a n t m e k - d s - j i | - i 1 W 0 i d th ay in s. to F r 3 o 0 m da 1 y 1 s.to F 6 ro 0 m d a 3 y 1 s. I to F r 9 o 0 m d a 6 y 1 s. 90 > d n a ys, ; ^ ; c c o o m p u m a n p e t e r e r ci d a . l Por cent. No. 1—Boston 402 4,729.2 l,879.o 45.8 211.1 6,865.6 38.3 No. 2—Now i'ork 625 .3 36S. 8 101.3 210.2 4.7 715.3 4.0 No. 3—Philadelphia 03 i 2,121.9 1.273.6 9.2 10.8 3,415.0 19.1 2s o. 4—Cleveland 754 2.5 37.7 25.0 34.5 6.3 ' 106. 0 • .6 No. .">—'Richmond - 520 21.0 360.1 408.4 4.62.2 211.4 i 1,463.1 8.1 No. 6— A.tlanta. 889 80. 2 473.0 257.7 496.6 31.3 : 1,338 8 7.5 No. 7—Chicago 993 46.5 1,291.7 328.1 149.3 220. S : 2,036.4 11.4 No- 8—Sr. Louis 470 504.8 219.8 188.1 - 93.2 6.9 ! 1,012.8 5. 7 No. 9—Minneapolis 761 9.8 14.6 101.9 55.4 219.6 i 401.3 2.2 No. 10—'Kansas Citv 941 40.0 55.9 43.0 72.4 | 211.3 1.2 No. 11—Dallas 621 11.3 23.1 13.7 108.7 ; 156.8 .9 No. 12—Sail Frajiclsco 521 4.0 7.0 81.6 80.4 2.7 ! 181. 7 1.0 Total for November- '628 336 j 7,520. 2 5,977.1 1.626.1 1,895.8 184.9 i 17,904.1 100.0 i'ercent 42.0 33.4 9.1 10.6 4.9 ! 100.0 Total for January-November, 1916 [ 22, 7-10. 4 34, 752 5 \ 31,682. 8 38.601. S 16,373.7 | 144,154.2 Total for January-November, 1915. - :'i3,683.r> I r>2,7fio.S 52,061.7 17,-130.0 j 145,941.0 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

JANUARY 1,1917. FEDERAL RESERVE BULLETIN. 61 Member banks' collateral notes discounted by each Federal Reserve Bank from Sept. 11, 1916, date vjhen first special rate became effective, to Oct. 31, 1916. Total Sep- Total Sep- Federal Reserve Bank. • NoJgjjf er» N t o e v m em be b r e - r, Federal Reserve Bank. Nov 19 e 1 m 6. ber, N t o e v m e b m e b r- er, 1916. 1916. I Boston i 8340,000 §655,000 St. Louis... §435,000 35635,000 New York 330,000 455,000 Minneapolis 12,800 512,800 Philadelphia ! 3,032,500 3,277.500 ! Kansas City 30,000 30,000 Cleveland : 15,000 385,000 j Dallas .. 10,000 230,000 Richmond j 180,000 1,056,000 Atlanta (including New Orleans branch) • 120,000 722,350 Total. 5,587,900 9,133,650 Chicago ! 1,082,600 1.175,000 ! Trade acceptances discounted by each Federal Reserve Bank from Sept. 12, 1915, date of first discount, to Nov. 30, 1916. Federal Reserve Bank. T D o 1 e 9 c ta . . 1 l 5 3 t . 1 o , Nov 1 e 91 m 6 b . er, 11 i f n o T m r o 1 o f 9 t i a 1 n r l 0 s t . h t s Federal Reserve Bank. T De o 1 c 9 t . 1 a 5 l . 3 t 1 o , Nov 19 e 1 m 6. ber, 11 i f n o T m r o 1 o f t 9 i a n 1 r l 6 s t . t hs Boston 6265,400 j 8315,300 St. Louis $167,800 850,400 567,200 New York So,700 161,000 ! 166,600 Minneapolis... 600 Philadelphia 1,000 66,600 j Kansas City... 87,800 190,900 Cleveland 4,900 3,700 173,800 Dallas 160,800 248,900 Richmond 450,500 154,000 1,288,400 ! San Francisco. 74,200 14,100 53,400 Atlanta (including New Orleans branch) | 1,007,100 179,000 948,000 Total.. 1,958,800 i 828,600 I 4,027,900 Chicago •I 8,200 i Commodity paper discounted by each Federal Reserve Bank from Sept. 8, 1915, date of first discount, to Nov. 30, 1916. Federal Reserve Bank. Nov 19 e 1 m 6. ber, 11 fo T m r o o f t i a n r l s t t hs Federal Reserve Bank. T De o 1 c 9 t . 1 a 5 l . 3 t 1 o , Nov 19 e 1 m 6. ber, 11 fo T m r o o f t i a n r l s t t hs in 1916. in 1916. Richmond 82,881,400 8343,200 86,788,600 Kansas City... 8360,000 Atlanta (including New Orleans Dallas 8239,100 I 225,200 branch) 7,032,300 539,400 7,106,900 San Francisco. 37,200 | 835,400 148,000 St. Louis 99,800 129,000 1,348,000 Minneapolis 9.-^»3 m00o !I 19,800 Total- 10,315,100 ! 1,047,000 15,996,500 Commodity paper discounted by each Federal Reserve Bank during the 11 months ending Nov. 30,1916, distributed by classes. 1 1 Atlanta Class. Richmond. (i N n e l c e w l a u n d O s in r- g St. Louis. Min l n is e . apo- K C a i n t s y a . s Dallas. Sa c n i s F co ra . n- Total. branch). Beans • £;~ofi 8500 6 800 6,800 Coffee 125 000 125,000 Cotton .... 86,742,900 5,921,700 81,074,000 ^S218,200 8300 13,957,100 Cotton seed 9 500 9,500 vix ?3 666 3,000 Floaur 140,000 140,000 Hav-. ... . . .. 400 400 Hops 64,200 64,200 Maize 2,900 2,900 Oats . ... 29 200 7,000 36,200 Oil 8360,000 20,500 380,500 Peanuts 41,100 6,000 47,100 Prunes .... . 5,000 5,000 Raisins 7,600 7,600 Wheat 16 S00 26,400 902,000 Miscellaneous 4,600 6', 100 274,000 24,000 308,700 Total . . .. 6,788,600 ; 7,106,900 1,348,000 19,800 360,000 225,200 | 148,000 15,996,500 1 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

62 FEDERAL RESERVE BULLETIN. JANUARY 1.1917. Amounts of discounted paper held by each Federal Reserve Bank on Nov. 24, 1916, distributed by maturities. Maturities. | Federal Reserve Bank. i ! Total. Per cent, Within 10 11 to 30 31 to 60 I 61 to 90 After 90 days. days. days. I days. days.. Boston ,801,500 5863,400 825,200 §92,500 §2,782,600 13.6 New York 343,100 273,400 125,600 229,600 S400 972,100 4.7 Philadelphia..., 896,100 170,700 22,100 5,600 1,094,500 S.b Cleveland 42,200 62,400 97,500 . 32,900 9,700 244,700 1.2 Richmond 550,500 752,600 1,087,100 292,700 12,100 2,695,000 13.1 Atlanta 513,000 708,000 1,001,000 438,000 52,400 2,713,000 13.2 Chicago 414.600 •1,648,900 977,200 251,600 581,400 3,873,700 18.9 St. Louis 394,600 984,900 807,400 131,400 14,600 2,335,900 11.4 Minneapolis 273,800 240,400 324,800 107,100 342,100 1,288,200 6.3 Kansas City... 82,000 181,800 208,200 104,000 192,500 768,500 3.8 Dallas 349,300 248,900 380,000 154,200 256,600 1,389,000 6.8 San Francisco. 38,000 83,500 147,900 70,800 4,200 342,400 1.7 Total. 5,696,700 6,218,900 5,201,000 1,914,000 1,466,000 I 20,499,600 100. C Per cent 27.8 30.3 25.4 9.3 7.2; 100.0 Amounts held on Nov. 26,1915.. 5,173.0 7,593.2 11,509.9 5,038.1 3,480.1 j 32.794.3 Per cent 15.8 23.1 35.1 15.4 10.6 ; 100.0 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

,1917. FEDERAL RESERVE BULLETIN. 63 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. I Bankers' acceptances. Trade : Nonmember banks. : Total ! ' Nonmember banks. Date- Mem- Date. i Mem- iber Total. i ber ! banks. market.1 i banks. ' | banks. I banks. 1915. ! ! 1918. Feb. 22 ' 93 | 93 May 22.. .! 26,639 16,490 690 6,038 49,857 51,863 Apr. 5 ' 3,653 i 7,820 • 10 | 110 ! 11,593 11,593 May 29.. .j 26,104 16,541 690 5,895 49,230 51,267 MayS ! 5,038 ' 8,189 : 10 110 '• 13,347 13,347 June 5... .• 24,680 17,029 644 7,007 49,360 51.568 June? ' 5,242 • 4,516 10 ' 192 i 9,960 ~>,960 Juno 12.. .' 27,354 1 19-, 209 622 7,865 55,050 2,310 57,360 July 3 | 4,342 j 5,267 ' 161 i- 9,770 9,770 '• June 19... : 32,011 i 19,490 560 9,067 61,128 2,054 63,182 Aug. 2 ! »,3oO 5,407 20 352 : 11,129 11,129 June 20... . 33,155 !18,722 552 11,009 1,958I 65,396 Sept. 6 i 6,087 \ 6,305 20 472 i 12,884 12,884 ••• July 3.... 18,921 471 11,830I 64,211 3,422! 67,633 Oct. 4 1 9,000 ! 4,898 132 343 i 14,373 14,373 ', July 10... .' 34,144 | 20,201 620 11,827I 66,792 3,052i 69,844 Nov.l 8,477 4,331 253 204 ' 13,265 i 13,265 July 17... .! 40,497 i 22,309 593 13,193! 76,592 3,685i 80,277 Dec. 6 12,311 5,172 275 396 .' 18,154 . 18,154 '.July 24... J 41,514 22,327 610 12,977i 77,428 3,651j 81,079 July 31... .1 41,395 21,437 724 13,619'. 77,1753,722I 80,897 1916. Aug. 7.... .j 39,695 1 19,060 738 13,940I 73,433 4,225I 77,658 Jan. 3 | 15,494 7,160 362 822 j 23,838 ., 23,838 : Aug. 14.... .i 41,536 i 18,144 754 13,443i 73,877 4,387i 78,264 J J a a n n . . 1 1 0 7 . . 1 1 1 1 6 6 , , 4 9 9 0 2 8 8 7 , , 0 65 5 5 7 3 42 7 5 0 1,0 9 1 3 0 8 ; : 2 2 5 5 , 8 9 5 9 7 8 180 ,; • 2 25 6 , , 8 1 5 7 7 8 i | A A u u g g . . 2 2 8 1. . . . . . . J . 4 4 3 3 , , 0 0 5 6 8 1 ' j • 1 2 9 0 , , 8 7 4 1 9 6 7 7 3 3 6 4 1 1 2 2 , , 6 6 2 7 3 3 i 1 7 7 6 7 , , 2 1 6 8 6 4 3 3 , ,8 7 1 4 5 8I i 8 8 0 0 , , 0 9 1 9 4 9 Jan. 24. .' 16,348 8,070 363 1.441 ; 26,222 180: 26,402 Sept. 4... .| 41,413 20,356 726 12,4911 74,986 3,6731 78,659 Jan. 31 .! 15,834 8,174 356 1,510 ' 25,874 180! 27,054 ' Sept. 11.. ., 39,766 20,747 760 11,5311 72,847 2,676! 75,523 Feb. 7 .! 15,681 7,876 336 1,456 : 25,349 489 ! 25,838 • Sept. 18.. .! 42,533 22,105 743 11,443! 76,824 2,673i 79,497 F F e e b b . . 1 2 4 1.... J .i 1 1 7 7 , , 5 6 8 6 1 1 7 8 , , 9 1 8 9 5 4 3 3 4 9 7 2 1 1, , 8 8 4 5 1 1 ! ; 2 2 7 8 , , 7 0 6 8 4 8 5 46 2 0 8! ! 2 2 8 8 , , 2 5 9 4 2 8 • ! S O e c p t. t . 2 2 . 5 .. . . . . . 1 ! 3 4 7 0 , , 7 3 9 0 8 9 2 2 2 1 , , 6 7 3 8 6 2 7 7 1 1 1 2 1 9 0 , ,7 9 9 4 5 4 j ! 7 7 4 0 , , 4 2 5 3 1 6 2 2 , , 7 3 9 0 6 6 ! ! 7 7 7 2 , , 2 5 4 4 7 2 Feb. 28.... .j 17,436 8,755 408 1,841 ! 28,440 460! 28,900 I Oct. 9.... .! 36,957 23,195 705 10,2511 71,108 2,048! 73,156 Mar. 6 . 17,182 8,670 408 1,781 i 28,041 462I 28,503 I Oct. 16... .j 37,655 23,684 784 10,230I 72,353 1,897I 74,250 Mar. 13.... J 20,323 10,032 470 1,631 | 32,456 546' 33,002 . Oct. 23... .': 39,694 26,281 867 10,718! 77,560 1,723i 79,283 Mar. 20.... :• 20,563 11,280 408 2,467 34,718 678i 35,396 : Oct. 30... .! 37,993 27,951 733 11,829! 78,506 2,468! 80,974 Mar. 27.... .j 21.128 12,864 411 3,078 37,481 629: 38,110 j Nov. 6.... J 37,770 29,474 1,014 12,1471 80,405 2,378! 82,783 Apr. 3 .; 21,000 13,573 473 3,262 38,308 722 39,030 ! Nov. 13.. ..! 39,49428,434 1,383 12,8021 82,113 3,425! 85,538 Apr. 10 .! 22,239 14,804 476 |3,405 ' 40,984 874. 41,858 ! Nov. 20... ..! 43,17331,237 1,670 13,8541 89,934 3,721! 93,655 Apr. 17,... -! 22,135 15,028 564 3.442 j 41,169 1,321 I 42,490 ' Nov. 27.. ,.! 46,11832,527 1,704 14,636: 94,985 3,979i 98,964 Apr. 24 J 23,566 .15.196 584 3,504 ! 42,850 1,438 ! 44,288 j Dec. 4..., ..i 47,748 33,232 1,630 16,069! 98,679 4,487i103,166 Mavl .i 24,875 !15,400 585 3,430 j 44,290 1,477 I 45,767 i Dec. 11... .1 55,071 35', 466 1,635 17,291 110,063 4,890i114,959 May8 .! 25,058 !15,750 671 3,493 i 44,972 1,518 46,490 ;. Dec. 18... ... 01,02936,220 1,514 17,349.116,112 4,6341120,746 Mavl5.... .j 26,633 i 15,372 773 4,960 I 47,738 1,635 49,373 i i Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

64 FEDERAL RESERVE BULLETIN. JANUARY 1,1917. Amounts of acceptances held by each Federal Reserve Bank at close of business on Fridays, Dec. 1 to Dec. 22,1916, distributed by maturities. [In thousands of dollars.] i ! j San Acceptances maturing— I Boston.' Y N o e r w k. I d P el h p i h la ia - .j | C la le n v d e . - Lo S u t. i s. M ap i o n l n i e s. - Kansas! Dallas. | 1 C F i r s a c n o - . Total Within 10 days: Dcc.l | 1,761 2,915 1,590 I 1,284 762 I 38 135 j 333 i 980 I 11,008 Dec. 8 ; 1,845 ! 4,106 2.328 I 953 1,250 I 230 100 I 167; 1,104 i 13,682 Dec. 15 •. ! 141 : 2,601 1, 788 i . 332 | 624 I 281 19 ! 1,434 j 8,717 Dec. 22 ! 40S I 3,916 1,785 j 608 749 i 385 266 i 58 1 1,026 j 11,678 From 11 to 30 days: | Peel I 2,00-1 ; 6,999 4,256 • 1,038 1,425 j 800 356 i 29 | 2,653 j 23,434 Dec. 8 i 880 I 9,602 4,841 i 2,031 1,533 i 1,203 792 j 59 3,935 I 29,851 Dec. 15 ' 1,501 '. 12,322 5.329 ! 2,828 2,021 ! 1,129 1,278 I 368 I 3,871 ' 37,308 Dec. 22 ! 1,496 ' 11,887 5,829 ! 3,074 1,671 I 1,146 1,118 ; 481 | 3,802 ! 36,503 From 31 to 60 days: i Dec.l ! 4,574 ' 16,347 4,665 3,408 2,433 I 1,562 953 i 561 6,126 j 45,784 Dec. 8 i 4,189 I 17,096 4,671 I 3,4.06 2,304 ! 1,530 899; 991 4,621 : 45,185 Dec. 15 5,068 . 16,940 4,466 | 3,352 2,398 1 1,786 889 I 1,183 5,102 47,032 Dec. 22 5,628 | 15,223 3,883 \ 3,281 2,289 i 1,880 832 I 1,060 4,710 44,184 From 61 days to 3 months: Dec.l...' 5,893 ! 10,419 2,825 j 1,475 921 557 366 370 1,161 26,380 Dec. 8 4,979 ; 10,582 2,976 ! 2,059 1.298 I 1.642 574 418 2,990 i 31,064 Dec. 15 3,907 ! 10,161 2,777 I 2.289 l',780 ! 2,552 957 344 2,538 I 29,860 Dec. 22....J 3,415 I 10,484 2, '112 i 2/787 2,279 I 2,628 1,859 437 2,910 I 32,268 Total acceptances held: Dec.l 14,232 ! 36,680 13,336 7,205 5,511 i 2,957 1,810 • 1,293 10,920 106,606 Dec. 8 11,873 41,386 14, 816 8,449 6,385 I 4,605 I 2,365 ! 1,635 12,650 119, 782 Dec. 15 10,617 ! 42,084 14,361 ! 8.801 6,823 • 5.748 3,301 i 1,914 ! 12,945 122;918 Dec. 22 10,947 i 41.510 13,909 ! 9', 750 6,988 j 6.039 4,075 ; 2,036 12,448 124,633 i 'i ! Distribution by maturities of acceptances bought in open market by each Federal Reserve Bank during the calendar year 1915 and the first 11 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 . - I I m K o ic n h d - . ^ O ^ di ' a C ns h ! ic 6 a °- - I | ^ S u t i . s. I , a M po in li n s e . - | 1 K C a it n y s , a s j ! c F S i r s a a c n n o - . T t s e f o y o m s t - r a . l,. • branch).; •, ! » -I- Within 30 days: Calendar year, 1915 497 1,246 695 101 1 7 i 156 ; 103 61 j 2,980 6 months ending June, 1916... 350 4,728 4,552 322 ! 579 j 270 ' 133 .. 50 539 11,553 July, 1916 2,038 754 402 i 905 480 ' 71 152 I 4,805 August, 1916 191 1,477 983 41 400 149 468 3,719 September, 1916 163 317 634 20 ! 1,781 617 ' 300 i.. 28 I 227 4,118 N O o ct v o e b m er b , e 1 r 9 , 1 1 6 91 .. 6 * 482 9 1 5 5 5 5 1, 2 1 3 7 1 1 250 398 , 402 1 57 •' 7 2 50 f| ! 4,4 7 1 1 3 7 Total for 11 months, 1916 1,186 9,670 I 8,325 790 I 3,915 1,538 i 1,315 71 65 I 94 426 1,930 29,325 After 30 but within 60 days: Calendar year, 1915 2,137 2,377 1,464 746 19 816 374 191 I 183 750 9,057 6 months ending June, 1916... 1,433 5,063 4,016 1,267 961 . 261 1,840 1,151 630 459 2,299 I 19,380 July, 1916 4 1,169 739 406 62 ' 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 ; 871 887 299 187 474 8,179 N O o ct v o e b m er b ,1 er 9 , 1 1 6 916 1,9 11 4 U0 3 U0 3 1 L, , , J 8 L 2 5 2 3 6 3 3 \ 1 1 1 , , , 2 7 Y 2 O 5 3 U 0 5 8 5 4 0 6 37 1 5 6 j i 5 9 9 0 0 j ! 1 3 4 3 8 4 4 1 4 3 1 3 3 3 9 8 2 1 2 3 7 8 3 3 5 4 8 1, 3 0 8 0 7 9 9 6 , , 4 8 3 2 1 6 Total for 11 months, 1916 4,290 I 13,616 10,271 4,413 2,209 ' 1,5 4,103 i 3,568 j 1,944 1,122 I 392 5,547 53,013 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 ; I 2,1265.389 I 4,321 2,500 1,635 5,847 96,733 July, 1916 " 1,391 11,161 3,556 2,855 i 238 ! 404 1,948 I 2,036 1,262 I 2,628 27,479 August, 1916 4,062 5,508 2,069 1,257 , 666 1.390 ; 1,335 827 i 787 500 1,349 19,750 S O e c p to te b m er b , e 1 r 9 , 1 1 6 916 ;. 2 3 , ,7 1 8 8 7 0 1 6 0 , , 9 40 4 5 0 3 4 , , 9 0 8 2 1 3 2 2 , , 3 2 4 7 4 8 i ! 2 5 9 8 7 5 '• ' 1 1 , ,9 1 7 9 7 0 1 2 , , 6 7 9 7 6 2 ! j 1 1 , ,7 5 8 6 1 1 1,0 7 3 0 5 2 2 9 4 4 8 2 2 4 , ,9 0 8 6 1 8 3 2 3 4 , , 3 7 5 9 1 0 November, 1916 6,205 13,842 3,276 2,173 I 102 i 979 1,689 ! 1,578 ,1,052 608 405 2,814 34,723 Total for 11 months, 1916.... i 41,674 82,291 16,379 j 1,222 j 7,342 14,884 I 12,612 7,378 4,220 I 1,273 19,687 j 236,826 Total acceptances bought: | I C 6 a m le o n n d t a h r s y e e n a d r i , n 1 g 9 J 1 u 5 n e, 1916 ! 1 2 4 5 , , 1 8 0 3 5 2 | 2 4 5 4, ,8 2 3 2 4 6 1 7 9 , , 5 5 6 2 5 7 2 7 , , 9 0 6 6 3 1 ! j 1,5 2 4 5 0 0 : , 2,65 7 7 2 5 7 , , 7 3 8 6 2 2 5 1 , , 4 8 7 0 2 1 | I 3 1 , , 1 45 5 5 1 2 1 , ,7 1 8 0 8 3 *o6" 3 8 , ,0 2 8 3 5 0 1 6 2 4 7 , , 8 6 4 6 5 6 July, 1916 ! 1,395 14,368 5,049 3,663 " 1,205 i 412 3,277 2,401 j 1,334 3,399 36,503 August, 1916 1 4,340 8,086 3,661 2,153 446 I 916 1,752 1 717 ' 1- ,05—3 1,098 649 2,576 28,447 September, 1916 : 4,673 8,484 6,591 2,787 2,827 ' 2,146 2,867 2,448 1,032 463 227 2,542 37,087 October, 1916 ! 2,280 11,793 5,962 3,190 960 I 2,320 2,920 2,222 1,373 1,137 726 6,011 40,894 November, 1916 8,630 18,620 5,670 2,728 308 I 1,967 2,124 1,991 1,444 635 439 3,951 48,567 Total for 11 months, 1916... .j 47,150 |105,577 j 46,460 1 21,582 I 7,346 ; 10,418 20,302 ; 16,251 9,387 j 5,436 2,091 27,164 I 319,164 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

JANUARY 1, 1917. FEDERAL EESEEVE BULLETIN. 65 Amount of short-term investments {municipal warrants) held by each Federal Reserve Bank at close of buisness on Fridays Dec. 1 to Dec. 22, distributed by maturities. I In thousands of dollars.] Atlanta V\"arrants maturing— Boston. Y XO o A rk V . . p P d h h e i i l a l - a . - C la lo n v d e . -, m R o ic n h d - . i O ng rl e N a e n w s Ch g i o c . a- Lo S u t. i s. |M ap i o n l n i e s. - Dallas. s T ys f o o t t e r a m l . branch). , Within 10 davs: Dec. i...; 67 6,698 791 751 857 68 !. 1,0-11 10,364 Doc. 8 157 1,48 A 177 700 50 18 ,. 85 2,751 Dec. 15 80 397 20 650 152 !. 1,379 Doc. 22 89 778 293 C50 178 153 102 204 2,447 From 11 to 30 days: Dec. 1 200 2,249 490 234 278 213 122 162 ;. 289 4,242 Dec. 8 169 1,070 455. 183 636 153 1.83 152 ;. 204 3,211 Dec. 15 114 713 445 397 501 358 183 398 3,170 Dec. 22 132 213 878 368 91 "46T 25 468 2,774 From 31 to 60 davs: ! Dec. 1 *. 261 86 562 444 265 25 331 2,129 Doc. 8 327 152 136 772 280 234 442 86 27 50 i 533 3,151 Dec. 15 312 177 137 558 280 234 262 111 78 50 • 339 2.624 Dec. 22 215 442 70 77 278 101 116 103 27 | 67 1,605 From 61 to 90 days: 63 Dec. 1 270 366 50 818 394 157 50 50 2 i 2,377 Doc. 8 145 290 792 116 100 25 25 2 I 41 1,591 Dec. J5 305 371 910 i 116 131 34 353 6 2 i 78 2,362 Dec. 22 313 131 910 117 181 34 6 78 2,164 From 91 days to 6 months: Dec. I.." 359 530 203 2 390 34 338 36 50 ! 112 2,142 Dec. 8 359 530 138 281 2 465 109 348 61 163 2,531 Dec. 15 189 424 81 167 4 439 75 25 55 125 1,659 Dec. 22 171 399 81 167 4 75 25 55 126 1,567 Total municipal -warrants hold: Dec. 1 1,157 9,920 1,505 2,568 404 2,126 592 646 343 , 1,855 21,254 Dec. 8 1,157 3,526 906 2,728 404 1,485 789 692 334 127 ! 1,026 13,235 Dec. 15 1,000 2,082 739 2,682 406 1,4-10 729 672 316 127 i 941 11,195 Dec. 22 920 1,750 719 402 1,390 729 672 j 164 127 | 441 10,557 i Distribution by sizes of acceptances bought in open market by all the Federal Reserve Banks during the month of November, and for the first 11 months of 1916. To $5,000. To 810,000. To 825,000. To S50.000. To §100,000. Over 8100,000. Total. Acceptances bought in I open market. S § i November, 1916: | Bankers' acceptances..' 575 1,674.822 440 3,360.708: 927 15,291,9621 268; ll,lS9,37li 100! 8,374,934 29j 6,056,950 2,339;'45,948,747 Trade acceptances 51 157,839 93" 852,217 23 '322', 465 j 3' ' 100^ 079j 6, '469', 393 5; 715,791! 1811 2 2,618,384 5.4 Total 626 1,832,661 533 4,212,925 950 15,6144,,442277ii 2277ll| 11,290,0501 106' 8,844,327 34: 6,772,741 2,520! 48,567,131 Per cent 3.8 j 88.77| 3 322.2|2 | 2 3 2i 182 18.2 ...! 13" 100.0 Total acceptances bought during: October, 1916 49' 384,176 632i 5,079,008: 740= 12,333,59" 265: 12,142,475 6,990,915 201 2,963,522 2,228 40,893,693 September, 1916 524 304,439 445 3,517,940: 660 11 194,706 1651 6,835,609 6,836,652 371 7,197,162 1,909 37,086,508 August, 1916 327 916,682 232! 1,888,457; 835,547 131! 5,340,003 5,744,106 35' 6,721,610 1,216 28,446,405 July, 1916 526 633,337 4951 4,026,432 809 12, 8£30,111 185 j 7,662,059 5,005,021 29! 5,286,683 2,112 36,503,643 Juiie, 1916 562 533^168 7371 6,238,1681 853. 739,638 191 •• 8,209,613 j 6,763,226 37: 5,913,336 2,463 42,397,149 May, 1916 335 012,891'j 219| 1,755,224 312 o,9\60,425 1081 3,262,880! 5,698,417 23| 4,221,630 1,059 21,911,467 April, 1916 269 847,35l| 281 j 2,305,281 313 5 4'20,116 94! 3,896,184, 2,697,334 11 3,332,850 1,000 18,499,116 March, 1916 288 941,908! 234! 1,983,554 35j 6,5578,432 109! 4,539,67l! 5,095,263 22! 3,779,223 1,071 22,918,051 February, 1916 2071 789,675 159! 1,307,989 196 3,548,326 49i 1,830,851! 1,613,614 lot 3,326,375 707 12,416,830 January! 1916 194 546,959 220 l,720,758j 4,1113,726 47 1,857,477| 1,284,593 9,523,513 Total acceptances bought during 11 months ending November, 1916 :,035,7365.828' 99,169,0511,615! 66,866,872| 67256,633,468 263.49,515,132 16,98fj!319,163.506 1 Of the above total, bankers' acceptances totaling $42,949,151 were based on imports and exports, and S2,999,596 on domestic trade transactions. 2 Of the above total, trade acceptances totaling S205,801 were based neon domestic trade transactions, and S2.412,583 were drawn abroad on importers in the United States and indorsed by foreign bank" Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

66 FEDERAL RESERVE BULLETIN. JANUARY 1, 1917. Total investment operations of each Federal Reserve Bank during the month of November, 1916, and for the 11 months ending Nov. SO, 1916 and 1915. [In thousands of dollars.] Acceptances bought in Purchases of United States bonds and Total investment Bills open market. Municipal warrants bought. Treasury notes. operations. discounted Bank. m ba e f n o m k r b s e . rB a a a c n n c c k e e p e s t r . - s' a a T c n r c c a e e d p s e t . - Total. City. State. ot A h l e l r. Total. b 2 c o e n p n d e t r s , i j • b 3 c o e ' n o n d e t r s. 1915 Boston 6,865.6! 8,630.1 8,630.1 517.li • 517.1! ' | ; i 16,012.8 5,724.4 New York.... 715.3J 17,964.11 655.7 18,619.8 5,301.4 i 5.301.4! 92.5 i 1 92.5 !24, 728.0 7,0*58.8 Philadelphia.. 3,415.0-: 5.513.41 156.0 5,669.4 322.8i 5.1 50.3! '378.2' ' | I i | 9,462.6 3,045.8 Cleveland 106.0 2,655.0! 73.0 2,728.0 150.2: 29.4! 185.6j "2,401.9 ; I 0.2! 2,402.1; 5,421.7 1,389.5 A Ri t c la h n m ta ond 1 1, , 3 4 3 6 8 3 . . 8 1 ' ! 1,7 3 6 6 1 7 .9 .6 1 ! 205.8 1,9 3 6 07 7 . . G 117 117.3 1 j 276.2 ! 1 1 1 276.2 i 2 3, , 4 1 2 0 3 6 . . 8 9 4 5, , 0 6 4 8 0 2 . . 8 2 Chicago 2,036.4! 2,021.1 103.2 2,124.3 129.5: 305.2 434.7, 1,076.0 ! 181-0 \ | ! 1,257.0 5,952.4 2,285.5 St. .Louis 1,012.8! 1,991.5 1,991.5 260.3! i ! 260.3! | 50.0 | ; • 50.0 3, 814. 6 1,241.8 Minneapolis... 401.3 j 1,425.4 18.6 1,444.0 155.9:...- I 12.1, 168.0." ' i i . ..' •.. 2,013.3 1,4S8.12 Kansas City... 211.3! 634.81 634.8 180.2!... 180.2J .5 i i : .5 1,026.8 3,019.8 Dallas 156.8, 439.l! 439.1 50. Oi 2.0 52.0 1,550.0 ! j i • 1,550.0 2,197.9 2,707.9 San Francisco. 181.7 2,544.7) 1,406.1 3,950.8i 70.2:... 70.2. i. 4,202.7 494.1 1 Total: Nov.. 1916... 17,904.1 45,948.7| 2,618.4 48,567. li7,143.6 427.6 93.8' 7,665.0' 5,397.1 j 231.0 I .i 5,628.3 , 79,76-1.5 Nov., 1915.. j 18,269.7 7,919.0 7,919.0; i | 9,001.2. 2,282.0 I 316.821 sooio1! J 2,988.82: 38,178.72 11 months cnd-j i i I ing Nov. 30, : ' I I 1916 J144,154.21304,754.9 14,408.6 319,163.5'81,351.0,4,084.5 920.3 86,355.8:42, 878.35 3, 878. 88.4,153.2| 300.0 51,210. J3 600,883.93j 11 months end-! f ing Nov. 30, ! i ; ! : i ; ; ! 1915 145,941.01 52.055.0! 52,055. Cj i j l62,648.710,193.85J2,7S2.12 390.0, "13,365.97 i .274,010.67 Sales of United States bonds and 1-year Treasury notes during the month of November, 1916. [Tn thousands of dollars.] j I I Bos- | Now *}$*' j Cleve- I Rich- j At- Chi- I St. I Minno-i Kansas Sari ton. ! York. phia : landp mon(l- | lanta. cago. ! Louis, j apolis. I City. Dallas. Total. 2 per cent bonds i I j j ' : ! j j 80.0 j ; 80.0 3 per cent bonds i 744.0 il,310.0 508.0 I 985.0 i 505.0! ,"450."6"'" "i2o."6"' 25.0 ! lOO'.O ! 6,146.0 1-year Treasury notes : ! i 100.0 j ' 100.0 Total sales j 744.0 1,310.0 ' 506.0 |l, 085.0 ; 505.0 1,450.0 : 120.0 1 401.0 ! 105.0 ' ; 100.0 I 6,326.0 ' I i I : ! i United States bonds and notes held by all Federal Reserve Banks on Nov. 29, 1916, distributed by maturities. 2 c o p n e s r o l c s e n o t f P 2 a n p 1 a e 9 m r 3 6. a c e s n o t f i ! P 2 a 1 p n 9 e a 3 r m 8 c a , e s n o t t lo 3 a p n e o r f c 1 e 9 n 6 t 1, c 3 o b p n o 1 v n e 9 e 4 r d 6 r s c . s e i o o n f n t 1 ! j j o ° n l V n " p o \ J r . t J t o e e £ a m a s r t r . . lo 4 a n p e o r f c 1 e 92 n 5 t .1 Total. i_ Boston 81,252,000 880,000 $56,000 I 81,000,000 ' 82,388,000 New York 92,550 ,102,900 ! 1,205,000 ; 1,400,450 Philadelphia 1,651,000 19,000 I 1,174,000 2,844,000 Cleveland 903,900 8500,000 1 1,000,000 82,586,560 44,600 i 618,000 ! §2,119,200 7,772,260 Richmond 276,200 17,800 ! 1,070,000 1,364,000 Atlanta 375,100 5/666 829,900 i 824,000 2,034,000 Chicago 2,356,000 5O,"666" I 509,"306" 2,541,000 $400 ! 1188,440000 !i 11,551177,000000 1,768,000 8,760,100 St. Louis 522,900 1,080,000 675,100 - 891,000 3,169,000 Minneapolis 1,013,900 50,000 I 1,193,740 500 I 27,200 ! 700,000 181,000 3,166,340 Kansas City 7,151,250 162,000 I 88,000 939,600 ; 963,000 825,000 10,128,850 Dallas 2,865,850 542,500 i 155,000 707,400 | 705,000 j 4,975,750 San Francisco 2,633,750 500,000 ! 3,133,750 Total.. 21,094,400 1,304,500 • 1,832,300 7,406,300 900 3,437,900 11,167,000 j 4,893,200 51,136,500 Amount of United States bonds with circulation privilege: Amount of United States bonds and notes without circulation privilege: 2 per cent $24,231,200 3 per cent of 1961 S900 3 per cent 7,406,300 3 per cent conversion 3,437,900 4 per cent 4,893,200 3 per cent 1-year notes 11,167,000 Total 36,530,700 Total .*. 14,605,800 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

JANUARY 1,1917. FEDERAL RESERVE BULLETIN. 67 FEDERAL RESERVE BANK STATEMENTS. Resources and liabilities of each Federal Reserve Bank and of the Federal Reserve System at close of business on Fridays, Dec. 1 to Dec. 22, 1916. RESOURCES. [In thousands of dollars.] B tc o n s . - New P p d h h e i i l l - a a . - C la le n v d e . - m R e 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. - 1 K C a i n ty s . as Dallas. F C S r is a a c n n o - . j i , : s y T f s o o te r t m al -. Gold coin and certificates in vauit: Tec. 1 12,317 141,908 16,650 36.464 4,549 4,876 29,254 8,602 7,677 4,718 4,537 10,365 j 261,917 Dec. 8. 14,478 127,187 16,429 36)074 4,512 4, 988 26,193 8,623 7,727 4.977 4,638 9,509 I 245,335 Dec. 15 j13,961 134,726 16,780 15, 611 4,602 0, 435 26,834 9,48IJ 7,931 5)398 4,809 10,866 i 256,418 Gold D s e e c t . t 2 le 2 m ent fund: 1 I 11 552 151,752 14,042 15, 386 <665 0)555 28,390 9,982 8,584 5,550 4,864 9,305 I 269,627 Dec! 15.734 7,171 15,838 22,870 23, US 8,332 27,863 7.736 9,197 17,932 14.052 5,038 ! 175,781 Dec. 8 113,080 21,241 9,448 20,32! 23, 017 6,80O 31,044 6'. 110 9,391 17)770 3.5)594 7,235 181.101 Dec. 15 ! 14,580 16,900 8,930 18, 608 23. 054 407 34.379 4)348 8,494 18.114 14,664 7,873 ! 177)341 Lee. 22 \ 18,606 19,826 15,105 17;434 39)231 0,939 29)428 3,349 G,562 18)065 14,574 10,692 I 178,811 Gold redemption fund: ! Dec. 1 I 50 250 50 55 245 267 200 47 118 154 10 I 1,416 Dec. 8 ! 50 250 50 53 2('3 262 200 178 30 113 74 10 i 1,533 Tec. 15 50 250 100 48 253 200 166 30 111 67 10 I 1,543 Dec. 22 50 | 250 100 45 221 303 200 1C4 30 104 62 10 I 1,479 Legal-tender rotes, silver, etc.: Dec.l : 142 I 7,080 269 i,009 46 180 384 1,156 181 34 279 10,836 Dec. 8 i 279 ; 1,302 223 779 22 136 227 1,163 174 36 201 102 4', 644 Dec. 15 j 82 ' 4,792 102 632 10 158 1.802 175 54 197 47 7,907 Dec. 22 ...i 165 2,870 77 534 10 109 483 1)321 172 48 194 62 6,025 Total reserve: j Dec.l '.28,243 160.409 32,807 40,398 27,958 13, 600 57,701 17,541 17,085 22,802 19,922 15,489 I 450.010 Dec. 8 | 27,887 149', 980 26,150 37,227 27,SI 4 12,236 57,664 16,074 17,322 22,896 ! 20,507 16,856 I 432)633 Dec. IS i 28.083 356,668 25,892 34,899 27;919 33; 258 7-19 15,301 16,630 23,677 i 19,737 18,796 I 443,209 5 per D c ec e . n t 2 2 redemption fund against j j 30,373 1374,698 29.324 33, 279 ?A, 127 11, 90(3 j 35,348 23,767 1 19,694 20;069 I 455,942 ¥. 11. banknotes: I Dec. 1 i 320 100 420 LOeo. 8 320 100 420 Dec. 15 ! 320 j 100 f 420 Bills D d e i c s . c 2 o 2 u nted—members: ' | "I" 300; 400 Dec.l : 4,021 2,23.9 246 2,418 ! 2,364 3.616 2.805 1.082 705 1,066 311 21,505 Dec. 8 8,747 9,942 • 4,628 1,525 2,244 ! 2") 610 3)490 3)990 1)259 666 j 944 294 38,345 Dec. 15 7,236 9,666 ; 6,191 1,477 ; 2,473 ", 2,547 3,369 1,710 1,258 923 293 37,748 Dec.22 6,081 4,345 ! 5,991 995 ' 2,902 i 3)366 3,600 1,4G0 1,952 479 I 845 281 32,297 Bills bought in open market: Dec! 14,232 36,680 i 13,336 7,205 1,250 j 4,835 6,547 5,541 ' 2,957 1,81.0 '3,293 10,920 106,606 Dec.8 11,873 41,386 • 14,816 8,449 1,660 i 5,271 8,687 6,385 4,605 2,365 1,635 12,650 119,782 Dec. 15 10,617 42,084 j 14,361 8)801 ! 2,742 '5,108 8,474 6,823 5,748 3,301 3,914 12,945 122,918 Dec. 22 10,947 I 41,510 ! 13,909 9,750! 3,404 1 4,693 8,834 6,988 6,03S 4,075 2,036 12,448 124,633 United States bonds: Dec.l 3,380 1G5 1.670 7,154 i 294 i 1,210 7,508 2,268 2,466 9,166 4,270 2,634 40,215 Dec. 8 1,332- 195 3)651 7,361 i 426 ; 1)73.0 i 8,358 2.203 2,442 9,166 4,270 2,634 41,548 D D e e c c . . 1 2 5 2 ".. 1 1 , ) 3 3 3 3 2 2 1,0 9 1 9 3 3 1 1 , , 6 6 5 5 1 1 7 7 , , 3 3 6 61 1 ! I 1, 4 12 26 6 1 j 1 1 , , 7 7 1 1 0 0 I I 8 8 ) ,4 40 5 8 8 2 2 ) ,2 2 0 0 3 3 2 2 , , 4 4 4 4 2 2 9 9, , 2 1 1 6 6 0 4 4 , ,3 3 2 2 2 8 2 2 , , 6 6 3 3 4 4 4 4 3 2 , , 5 6 0 4 4 8 1-year Treasury notes: Dec. i * 3,000 I 1,205 1,174 618 ! 1,070 I 882244 I !.5!7 891 700 705 SCO 11,167 Dec 8 1,000 ! 3.205 1,174 618 ; 1,070 ! 882244 !)537 891 700 705 500 11,167 Dec.15 [/.'.'.'.'.'.'."'.'.'."'. 1,000 • 3)205 3,174 618 ! 1,070 821 891 700 063 I 705 ! 500 11,167 Dec. 22. 1,000 1,205 ! 1,174 63 8 : 3,070 ; 824 ] I". r>J 7 891 700 003 i 705 i .•=00 31,167 Municipal warrants: D D e e c e . . 8 1 i ! 1 1 , , 1 1 5 5 7 7 : I 9 3 , , 9 5 2 2 0 6 i " 1,5 9 0 0 5 6 2 2 , , 7 5 2 6 8 8 ! i 6 61 1 • '' 4 4 0 0 4 4 ! : 2 1 , ,4 1 8 2 5 6 5 78 9 9 2 6 69 4 2 6 3 3 3 4 4 3 I 12 7 7 7 1 1 , , 0 8 2 5 6 5 2 1 1 3 , ,2 2 3 5 5 4 Dec. 15 1,000 ! 2,082 i 739 2,682 , 61 406 ! 1,440 729 672 316 ! 127 941 11,195 Dec. 22 920 : 1,750 i 719 2,682 ! 61 : 402 ! 1,390 672 164 I 127 941 10,557 Federal Reserve notes, net: Doc. 1 1.159 ! 10,071 1,300 625 1,549 2,532 1,065 18,301 Dec. 8 ".....I 751 ; 10,464 i1,839 1,009 2,199 2,017 18,760 Dec. 15 i 1.160 ! 11,311 761. j - 1,686 2,066 2,520 19,504 Dec. 22 1 810 i 12,213 686 1,114 2,071 2,342 19,236 Due from other F. R. Banks, net: ! Deal . 2,473 6,399 2,587 793 ! 447 11,126 6,166 2,577 138,188 Dec. 8 949 i 5,906 1,672 1,076 , 1,754 13,247 6,942 1,101 136,565 Dec. 15 8,944 I 14,050 3,605 ! 1,227 8,795 8,774 147,586 Dec. 22 ". 6,032 ! 6,820 337 3,724 i,i33 . 1,989 15,020 9,494 ""566" 149,318 All other resources: Dec. 1 13 i 202 57 163 121 j 285 280 37l! 25 2,495 Dec. 8 30 j 138 91 171 32 ! 483 240 244 : 2,881 Tota D D l e e r c c . . e so 2 1 u 2 5 rces: 2 1 5 1 ! 16 3 3 16 25 9 5 3 2 2 0 1 7 7 4 5 5 4 i I 7 7 1 3 8 5 6 7 0 6 0 0 2 6 7 7 7 3 ! , 14 4 3 , , 6 5 5 0 6 6 Deal 53,678 221,733 54,068 61,564 33,965 24,024 91,970 36,175 , 30,070 39,621 40,383 710,161 Dec. 8 53,726 !222,742 51,255 60,232 34,383 25,292 95,497 35,524 I 30,359 39,792 41,478 715,316 Dec. 15 50,101 60,421 34,736 25,815 96,198 37,104 I 29,544 40,135 44,124 741,051 Dec. 22 57,520 243,747 59,402 33,877 25,608 99,034 36,798 29,804 40,701 42,230 750,560 1 Items in transit, i. e., total amounts due from, less total amounts due to, other Federal Reserve Banks. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

68 FEDERAL RESERVE BULLETIN. JANUARY 1,1917. Resources and liabilities of each Federal Reserve Bank and of the Federal Reserve System at close of business on Fridays, Dec. 1 to Dec. 22, 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 lo 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 s . as 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 . Capital paid in: Dec. 1 5.007 11,913 5,228 5,993 3,346 2,480 6,685 2,798 2.609 3,058 2,695 3.925 55,737 Doc 8 5. Oil 11.914 5,228 5. OSS 3.3-16 2,480 6.685 2-798 2.609 3,065 2.695 3,924 55 746 Dec. 15 4.990 11,914 5,228 5^990 3,346 2,480 6,685 2 7^8 2.608 3,068 2,695 3,929 55,731 Dec 22 4,990 11,914 5,228 6,022 3,346 2,480 6,685 2,796 2,610 3,070 2,695 3,929 55,765 Government deposits: Dec 1 2,546 1,860 3,759 1,562 3,034 3,603 2,853 2,138 849 137 1,684 2,692 26,777 Doc 8. 3.168 4,725 2,903 1,213 2,569 3,739 2,153 2.361 820 453 1,553 3,011 ' 28,668 Dec 15 2:871 3,717 3.081 1,183 3,145 3,670 1,455 3,044 855 362 1,519 3,860 28,762 Dec 22 2.365 5,520 3', 167 986 2,663 3,760 2,515 2,665 912 157 1,461 3,301 29,472 Member bank deposits, not: Dec 1 45,890 207,829 39,145 54,009 25,511 13,788 82,397 26.193 26,605 35.302 23,142 33,719 613.530 Dec 8 45,289 205', 950 39.247 53,031 25,997 15,499 86,610 26,833 26.911 35.238 23,555 34,483 618.643 Dec. 15 51,873 222'. 578 39', 072 53,248 24,561 16,066 88,015 27,125 25', 765 35,600 22,960 36.273 643', 136 Dec 22 49,914 226|177 43\ 629 52,394 24,381 15,780 89,799 27,217 26.252 35 484 22 822 34,938 6^8 787 Federal Reserve notes, not liability: Dec 1 2,044 4,037 5,046 1,096 1,160 13,383 Dec 8 . .. 2,434 3,518 3,532 1,008 931 11,423 Dec 15 259 2, 775 3.549 4,137 1^ 105 781 12 606 Dec 22 1,154 3,456 3,533 4,120 1,990 1,501 15,754 Federal Reserve bank notes in circulation: Dec.l 28 28 Dec 8 28 28 Dec. 15 Dec. 22 i i : ! Due to other Federal Reserve Banks, net: Dec.l 5,771 Dec 8 3,698 123 Dec. 15 2,278 875 293 598 Dec 22 All other liabilities: Dec. 1 235 131 165 30 56 35 7 • 47 706 Dec. 8 255 153 . 179 37 56 49 19 :::::: 60 808 Dec 15 249 172 183 34 50 43 23 62 816 Dec. 22 251 136 182 31 55 35 30 62 782 Total liabilities: Dec.l 53,678 221,733 54,068 61,564 33,965 24,024 91,970 36,175 30,070 39,621 28,681 40,383 710,161 Dec. 8 53,726 222,742 51,255 60'. 232 34,383 25,292 95,497 35,524 30,359 39,792 28,857 41,478 715,316 Dec. 15 59,983 238,381 50,101 60,421 34,736 25,815 96,198 37,104 29,544 40,135 28,553 44,124 741,051 Dec. 22 57,520 243,747 53,360 59,402 33,877 25,608 99,034 36,798 29,804 40,701 28,479 42,230 750,560 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

JANUARY 1,1917. FEDERAL RESERVE BULLETIN. 69 Federal Reserve note account of each Federal Reserve Bank at close of business on Fridays, Dec. 1 to Dec. 22, 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 - . - G la lo n v d e . - | m R o ic n h d - . la A nt t a - . • ! c C ag h o i . - j L S ou t. is. K C a i n t s y a . s : Dallas. F c S i r s a a c n n o - . sy T s f o t o e t r a m l . Federal Reserve notes issued to bank: Dec. 1 12,187 90,733 14,121 8,763 19,187 ! 24,513 4,142, 16,702 20,380 20,499 i 24,825 12,218 268,270 Dec. 8 12,147 94,764 15,964 9,420 19,694 2~5 ,4"4"8 ! 4,137 I 17,166 20,380 21,399 24,725 14,218 279,462 Dec. 15 13,103 98,875 17.232 10,574 20,034 25,799 I 5,513 I 17,148 20,331 21,417 ! 24,649 15,103 289,778 Dec.22 13,503 104,941 17; 194 10,939 20,478 25,959 ; 5,189 16,918 20,311 22,277 i 24,202 14,795 296,766 Federal Reserve notes in hands of bank: Dec. 1 1,159 10,071 1,300 625 846 884 ; 1,549 j 301 2,532 544 | 255 1,065 21,131 Dec. 8 751 10,464 1,839 481 766 1,003 ! 1,009 | 815 2,199 632 184 2,017 22,160 Dec. 15 1,160 11,311 1,041 761 805 972 i 1,686 j 210 2,066 535 • 335 2,520 23,402 Dec.22 810 12,213 146 374 988 ! 1,114 227 2,071 550 : 199 2,342 21,720 Federal Reserve notes in circulation: Dec.l 11,028 80,662 12,821 8,138 18,341 23,629 2,593 16,401 17,848 19,955 24,570 , 11,153247,139 Dec. 8 11,396 84,300 14,125 8,939 18,928 24,445 3,128 16,351 18,181 20,767 ! 24,541 I 12,201257,302 Dec. 15 11,943 87,564 16,191 9,813 19,229 24,827 3,827 16,938 18,265 20,882 24,314 •: 12,583266,376 Dec.22 12,753 92,728 17,048 10,253 20,104 24,971 j 4,075 I 16,691 18,240 21,727 ; 24,003 I 12,453275,046 Gold and lawful money deposited with or to credit of Federal Reserve Agent: Dec.l 12,187 90,733 14,121 8,763 16,297 19,592 4,112 11,355 20,380 18,859 ! 23,410 12,218 252,057 Dec. 8 12,147 94,764 15,964 9,420 16,494 20,927 4,137 12,819 20,380 19,759 i 23,610 14,218 264,639 Dec. 15 13,103 98,875 15,932 10,574 16,454 21,278 5,513 ! 12,80120,331 19,777 i 23,533 15,103 273,274 Dec.22 13,563 104,941 15,894 10,939 16,648 21,438 5,189 12,571 20,311 19,737 22,502 14,795 278,528 Carried to net assets: Dec.l 1,159 10,071 1,300 625 1,549 2,532 1,065 18,301 Dec. 8 751 10,464 1,839 481 1,009 1 2,199 2,017 18,760 Dec. 15 1,160 11,311 761 I 1,686 2,066 2,520 19,504 Deo. 22 810 12,213 1,114 2,071 2,342 19,236 Carried to net liabilities: Dec.l 2,044 4,037 5,046 ! 1,096 1,160 13,383 Dec. 8 2,434 3,518 3,532 : 1,008 931 11,423 Dec. 15 259 2,775 3,549 4,137 i 1,105 781 12,606 Dec.22 1,154 3,456 3,533 4,120 i 1,990 1,501 15,754 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

70 FEDERAL BESEEVB BULLETIN. JANUARY 1,1917. Federal Reserve note account of each Federal Reserve Agent at close of business on Fridays, Dec. 1 to Dec. 22, 1916. [In thousands of dollars.] B to o n s . - Y N o e r w k. phfc Clovc" m R o ic n h d - . la A nt t a - . c C a h g i o - . Lo S u t. is. M ap i o n l n is e . - ! • K C a it n y s . a s ! 1 J Jna iJa ,, s- 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 . j I r ! Federal Reserve notes: 1 Received from Comptroller- Dec. 1 24,880 158,400 19,880 15,160 28,000 33,280 10,380 22,540 24,500 24,220 j35,320 15,720 412,280 Dec.8 24,880 163,400 21,920 15,160 28,000 33,780 10,380 22,540 24,500 25,120 35,320 17,720 422,720 Dec. 15 28,880 108,400 I 30,480 16,660 29,500 35,380 10,880 22,540 24,500 27,120 35,320 17,720 447,380 Dec.22 28,880 ! 173,400 I 30,480 16,660 29,500 35,380 10,880 22,540 24,500 28,120 35,320 17,720 453,380 Returned to Comptroller- I Doc. 1 6,913 52,147 5,759 3,497 6,163 3,642 1,357 2,298. 800 1,968 4,154 1,602 90,300 Dec. 8 6,953 52,516 5,956 3,540 6,306 3,706 1,362 2,334 800 1,968 j 4,254 1,602 91,297 Dec. 15 -.-. 7,117 52)805 : 5,i 3,586 6,466 3,756 1,367 2,352 849 2,050 4,330 1,617 92,283 Dec. 22 7,357 53,139 ' 6,026 3,621 6,522 3,796 1,691 2,582 869 2.090 4,462 1,925 94,080 Chargeable to Federal .Reserve ! I Agent- Dec.1 17,967 106,253 ! 14,121 ! 11,663 21,837 29,038 9,023 20,242 23,700I 22,252 31,166 14,118 321,980 Dec. 8 17,927 110,884 ; 15,964 !11,620 21,694 30,074 9,018 20,206 23,700! 23,152 !31,066 16,118 331,423 Dec.15 21,763 115,595 ! 24,492 j 13,074 23,034 31,624 9,513 20,188 23,651 I 25,070 j30,990 16,103 355,097 Dee. 22 2.1; 523 120)261 : 24,454 ; 13,039 ! 22,978 31,584 9,189 19,958 23,631 i 26,030 30,858 15,795 359,300 In hands of Federal ttsservo Agent- Dec.1 .", 780 15,520 i 2,900 2,650 5,125 I 4,881 3,540 I 3,320 1,753 6,341 1,900 ! 53,710 Dec. 8 5,780 16,120 ! 2,200 2,000 4,626 ! 4,881 3,040 ! 3,320 I 1,753 6,341 1,900 51,961 Dee. 15 8,660 16,720 7,260 ; 2,500 3,000 5,825 ! 4,000 3,040 I 3,320 ". 3,653 6,341 1,000 65,319 Dec. 22 7,960 15,320 , 7,260 I 2,100 2,500 5,625 I 4,000 3,0-10 3,320 | 3,753 6,656 1,000 I 62,534 Issued to Federal Reserve Bank, net- Dec. 1 12,187 90,733 I 14,121 ! 8,763 19,187 24,513 4,142 16,702 20,380 20,499 24,825 12,218 ! 268,270 Dec. 8 32,147 94,764 15,964- I 9,420 19,694 25,448 4,137 17,166 20,380 21,399 24,725 14,218 i 279,462 Dec. 15 13,103 98,875 i 17,232 ! 10,574 20,034 25,799 5,513 17,148 20,331. 21,417 24,649 i 15.103 | 289,778 Dec. 22 13,563 104)941 ! 17,194 I 10,939 20,478 25,959 5,189 16,918 20,311 22,277 24,202 I 14,'795 i 296,766 Amounts l^old bv VorLei-Al Rosr-rve Agent: In reduction o['llability on outstanding notes — Gold coin, and certificates on liand— Dec. 1 11,100 85,853 3,820 8,280 3,460 |- - 5,165 I 13,030 4,270 10.340 115,318 Dec. 8 11,100 89,253 3,820 8,880 3,,460 !. .1 5'. 165 . V\,(ttQ ! 4,21700)3-10 ! 149)318 Dec. 15 12;100 92,652 3,820 9,880 i 3,460 -I 5)165 ! 13,030 j 4,37010,340 i 154)817 Dec. 22 99,052 3,820 10,280 ; 3,460 5,165 13,030 i 4,370 10,340 : 162,117 Credit balance in gold re- 12,600 demption fund- Dec. 1 1,087 4,880 801 ! 483 j 797 ! 1,162 192 1.100 1,229 i 1,240 • 518 14,369 Dec. 8 1,047 5,511 764 j 540 ! 744 j 1,097 187 884444 1i',,11000 0 1,12,2292 91,340 j 518 14,921 Dec. 15 . . 1,003 6,223 932 694 j 704 2.048 I 183 926 1,051" 1,-1/4-7 1,263 ," 503 16,677 Dec. 22 963 5,889 894 659 j 648 : 2,008 I 179 8on/9? 8 . ] 1i; )A0I^ 31 •• 1,1 1t\*0r7 | 1*232 ' 475 15,931 Credit balance with Federal Reserve Board— I Dec. 3 9,500 | 15,500 !14,970 3,950 5,310 I 6,250 13,360 ! 11,830 11,700 92,370 "Dec. 8 11,380 ! 15,750 I16,370 3,950 6,810 6,250 14,260 I 11,930 13,700 100,400 Dee. 15 11,180 ... ."J 15,750 :15,770 5,330 6,710 6,250 14,260 11,930 14,600 101,780 Dec. 22 11,180 , j 16,000 15,970 5,010 6,510 J 6,250 14,260 10,930 14,320 100,430 As security for outstanding notes— Commercial paper- 2,890 4,921 I 5,347 1,640 1,415 . ...i 15,213 Dee! 8"!!!"!".!!!!"!!!!. 1,300 3 3 , , 2 5 0 8 0 0 4 4 , , 5 5 2 2 1 1 I 1 _ i 44,,334477 1 1 , , 6 6 4 4 0 0 1 1 , , 1 1 1 1 5 6 i i 1 14 6 , , 8 5 2 0 3 4 1,300 3.830 4,521 " 4,347 2,510 1,700 ! 18,238 Dec. 15 i. TotaDle- c. 22 !!. I Dec. 1 12,187 90,733 14,121 8,763 19,187 21,513 4,142 15,702 20,380 20,499 24,825 12,218 268,270 Dec. 8 ! 12,147 91,764 15,954 9,420 19,894 25,448 4,137 17,166 20,380 21,399 24,725 14,218 279,462 Dec. 15 ' l:$, 103 93,875 17,232 10,571 20,031 25,799 5,513 !17,148 20,331 21,417 24,647 15,103 289,778 Dec. 22 1 13,563 104,941 17,194 10,939 20,478 25,959 5,189 16,918 20,311 22,277 24,202 14,795 296,765 Memorandum: I TToottaall amount of commercial j paapper delivered to Federal • RReesserve Agent- Dec. 1 1 3,112 4,929 5,347 1,642 I 1,525 16,555 Dec. 8 3,352 4,529 4.351 1,640 : 1,582 I 15,454 Dec. 15 '. 1,300 4,333 4,528 4,350 1,641 I 1,878 17,030 Dec. 22 i 1,300 4,564 j 4)525 4,348 2,545 ! 1,795 19,077 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

GOLD IMPOSTS AND EXPORTS. of gold, by customs districts, Jan. 1 to Dec. 15, :W:(6. [In thousands of dollars.] Maine ! Southa H nd a m N p e - w Y N o e r v k .- . .Florida. Orleans.z A o r n t a - . ; J ' K as i o. La rod 0. Alaska. Han C e a rn li- i W ng a t s o h n - . Buffalo.Dakota. M g i a c n h . i- Ohio. S r t e . n L c a e w . - Total. shire. i-isco. fornia. - - Week ending Nov. 24. • Ore and base bullion 38 15 ! 8 <2 13 3 6 148 United States mint or assa v office b'irs 157 157 Bullion refined rj-i - 15 135 365 United States coin I 1 Foreign coin • 2, -134 2,434 i Total . 254 23 8 2.476 148 157 3 6 3,105 Week ending Dec. 1. ! Ore and base bullion . ..' 3G 37 23 21 80 214 United States mvnt or assay office bars 39 39 Bullion, refined 3i'2 •\ •• i 2 24,375 24,789 Foreign coin 2,'133 2,433 Total 378 ' 5 10 ' 37 2,439 2 23 105 21 so 24,375 27,475 I Week ending Dec. 8. Ore and base bullion fil 1 5 1 100 16 8 12 194 United States mint or assav office bars 255 255 B U u n l i l t i e o d n , S r t e a f t i e n s e d coin 44 1 8 j • 1 98 3 24,133 24,683 1 Foreign coin 2,433 22,875 25,308 : Total 500 1 5 1 I 2.533 114 25S 8 12 47,008 50,441 Week ending Dec. 15. i Ore and base bullion 7/i 7 2 31 3 32 82 232 Bullion, refined.. i 2(52 4 27 28, i08 28,401 United States coin 1 1 Total 337 ! 11 2 1 31 3 27 32 82 28,108 28,634 Jan. 1 to Dec. 15. Ore and base bullion 1 2,377 349 506 105 237 lift 3,066 3 2,603 624 357 2,162 3 12,509 1 4 460 4 460 Bullion, refined . 20,000 33,881 iss 47 2.794 3,410 31 2,587 41,643 334,931 439,512 United States coin 1,218 45 : fi ' 20 50 1,778 3,122 Foreign coin 1 28,644 10 9 :::::::::::: 26,766 2,412 91,819 149,661 Total 20,002 66 12ft 55 363 694 ! 152 237 2,930 33,242 34 5,246 49,139 357 2,162 3 428,528 609,264 • Excess of gold imports over exports for 50 weeks, Jan. 1 to Dee. 15. 1916 3459,457 Excess of gold imports over exports for corresponding period, 1915 404,200 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Exports of gold, by customs districts, Jan. 1 to Bee. 15, 1916. to Week ending Nov. 2fh United States mint or assay office bars Bullion, refined, domestic United States coin Foreign coin : Total Week ending Dec. 1. Ore and base bullion United States mint or assay office bars Bullion refined domestic United States coin Total Week ending Dec. 8. United States mint or assay office bars Bullion refined domestic United States coin Total Week ending Dec. 15. United States mint or assay office bars Bullion, refined, domestic United States coin Foreign coin Total Jan. 1 to Dec. 15. Ore and base bullion. United States mint or assay office bars Bullion, refined: Domestic Foreign . United States coin Foreign coin Total weN dna eniaM .erihspmaH 2 2 .kroY woN 63 33 3,305 3,401 6 4,955 4,961 24 513 3,399 3,936 11,384 44 11,428 1,041 6,329 1,438 57,391 18,197 84,396 .aihpledalihP 3,000 3,000 3,000 3,000 .adirolF 3 PH o o PH 800 800 1,629 1,629 .ainigriV 350 3-50 15 350 15 350 .snaelrO weN 365 365 .ssaP elgaE .aksalA i 12 i i 1 165 ' 1 2 1 1,165 2 13 .iiawaH 29 29 110 110 386 3S6 .ocsicnarF naS 1. d ¥ o 1,037 80 1,117 867 217 1,084 400 J00 1,034 198 1,232 14,928 701 29,371 50 216 45,216 50 .notgnihsaW 6 PA 31 31 7 17 30 7 5 5 1,300 1,300 10 1 19 24 25 19 186 70 275 6 513 4 5,402 21 29 5,594 912 .atokaD 02 6 6 2 2 11 11 4 104 1 109 .nagihciM i 1 1 2 2 i 2 9 12 16 1 6 3 33 16 dna ana-tnoM .ohadI 1 1 2 .ecnerwaL .tS 6 2 500 502 2,025 2,025 6 5 H 522 42 16 4.150 ^422 6,152 .tnomreV • ; "p 1,100 70 7,185 1 8,356 13 869 13 5,726 6,621 29 518 7,476 8,023 1,034 1 27 12,097 44 1 13,202 271 16,768 15 7,631 1,458 750 103,803 19,876 765 149,807 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

JANUAUY 1,1917. FEDEEAL EESEEVE BULLETIN. 73 EARNINGS ON THE INVESTMENTS OP FEDERAL RESERVE BANKS. Average amounts of earning assets held by each Federal Reserve Bank during November, 1916, earnings from each class of earning assets, and annual rate of earnings on the basis of November, 1916, returns. Average balances for the month of the several classes of earning assets. m c B o e il u m l n s b t d e e i d s r - s , . | Bi m i l n ls a o r b p k o e e u n t. ght 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 M wa u r n r i a c n ip ts a . l Total. I Boston §2,015,145 $12,938,419 SI, 616,138 §1,000,000 §1,779,419 $19,349,121 New York 1,067,498 ! 30,371,945 642,617 1,205,000 6,379,169 39,666,229 Philadelphia 709,357 I 12,351,742 1,874,600 1,174,000 1,863,130 17,972,829 Cleveland ! 271,773 | 6,884,225 6,077,867 661,333 3,680,377 17,575,575 Richmond I 2,964,959 1,452,632 294,041 1,070,000 60,750 5,842,382 Atlanta : 3,103,944 4,615,246 1,210,000 821,000 330,005 10,083,195 Chicago i 3,240,961 6,395,444 7,246,467 1,517,000 2,641,500 21,041,372 St. Louis i 2,141,803 5,029,402 2,290,000 891,000 834,336 11,186,541 Minneapolis 1,418,800 3,015,500 2,616,500 700,000 1,281,400 9,032,200 Kansas City 771,464 1,839,471 9,198,133 963,000 408,784 13,180,852 DDallas l l 1 9 1 8 2 16 1,918,216 943,441 3,510,750 705,000 69,655 7,147,062 San Francisco 299,216 10,655,967 2,716,250 500,000 2,164,714 16,336,147 Total. 19,923,136 96,493,434 39,293,363 11,210,333 21,493,239 | 188,413,505 Earnings from— Calculated annual rates of earnings from— c B o i m b l u l e e n s r m t s d e . - i d s , - m i b n o B a u o r il k p g l e s e h n t t . U b S o n ta n i t t d e e s s d . T O n r n e o e a t - e s y u s e r . a y r p M r a a l u n n w t i s c a . i r - - Total. B co i m b l u l e e n s r m t d s e . i - d s , - m i b n B o a o u r i p l k g l e e s h n t t . U b S o n ta n it t d e e s d s . 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 w n t i s a c . i r - - Total. Per cent. Per cent. Per cent. Per cent. Per cent. Per cent. Boston §5,114 §25,270 §2,840 §2,364 $4,449 §40,037 3.19 2.47 2.22 2.98 3.16 2.61 New York 3,371 64,222 1,379 2,947 14,803 86,722 3.85 2.57 2.62 3.00 2.79 2.66 Philadelphia.. 2,129 24,638 3,152 i 2,871 i 4,572 37,362 3.67 2.43 2.05 2.98 2.99 2.53 Cleveland 1J000 13,613 12,577 j 1,653 ! 10,256 39,099 4.49 2.41 2.52 3.00 3.40 2.72 Richmond.... 9,432 3,549 522 i 2,544 | 171 16,218 4.02 3.08 2.24 3.00 3.56 3.50 Atlanta 9 445 I 10,876 2,653 j 2,015 i 985 25,974 3.71 2.88 2.68 2.98 3.64 3.14 Chicago 12,153 12,903 14,437 3,793 | 6,450 49,736 4.58 2.46 2.39 3.00 2.98 2.87 St. Louis 6,552 ! 10,594 4,435 I 2,252 j 2,284 26,117 3.73 2.57 2.36 2.99 3.28 2.85 Minneapolis... 5,735 i 5,961 4,751 I 1,754 ! 3,010 21,207 4.93 2.41 2.22 3.05 2.87 2.86 Kansas City... 3,129 ! 3,751 16,163 2,368 ! 4.95 2.49 2.14 3.00 2.65 2.44 Dallas 7,489 ! 2,045 6,292 ! 1,724 ; 189 17,739 4.68 2.50 2.20 3.00 3.20 3.00 Ban Francisco. 1,138 j 21,615 4,406 ! 1,250 j 4,9 33,467 4.64 2.48 2.01 3.00 2.S2 2.50 Total i 66,687 \ 199,037 73,667 ; 27,531 i 53,056 419,978 4.08 2.52 2.29 3.00 3.01 2.72 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

74 FEDEE-AL BESEEVE BULLETIN". JANUARY 1, 1917. DISCOUNT RATES. Discount rates of each Federal Reserve Ba,nh in effect Dec. 3, 1916. Maturities. Discounts Trade acceptances. Agricul- tural 1 W 0, i d th a i y n s. 1 W 5 i d th ay in s. d c 1 a l 1 u y s t s i o , v i 3 e n . 0 - d c 1 a l 6 u y s t s o i , v i 3 e n . 0 - d c 3 a l 1 u y s t s o i , v i 6 e n . 0 - d c 6 a l 1 u y s t s i o , v i e 9 n . 0 - an p s d t a o p l c i e k v r e- d cl a T u y o s s i , 3 v i 0 e n . over 90 days. Boston 3.V 4 A 4 5 '71 New York 3 4 4 4 ,5 Philadelphia 3* 4 4 4 41- Cleveland U 4 44 5" Richmond 4 4 4 4 Atlanta 4 4 4 4 Atlanta (New Orleans branch) Chicago 34 • 4 A ? 5 M St. i n L n o ea u p is olis lJ 4 4 4 4 5 4.1- Kansas City 41 5 Dallas 4 4 4 4 San Francisco 3 4 31 4 «i •:«: (Com- 31 to 60 61 to 90 m m w p o a i i a n t p d t h g u e i i t r r n y - m i b n P o a a u o r p k p g e e e h r t n t . M b c lo a o e e a n r l m l a n k a l s b t s . - e ' r days, in- days, in- 00 days. clusive. clusive. 3='. 3.\ 4 4 3-i 34 3?. 3 <> i " 3 O. - 3 i . 3 4 t 3 4 4 34 32 [ 31 34 31 81 3" 3 34 or 3-i f 34 si f 4 4 8 3 3 1- 3 3 4 - 4 j 3 3-5 3 4 >7, 1 Rate for bills of exchange in open-market operations. 2 Rate for trade acceptances bought in open market without member bank indorsement. B Rate for commodity paper maturing within 30 days, 3^ per cent; over 30 to 60 days, 4 per cent; over 60 to 90 days, 4^ per cent; over 90 days, 5 per cent. . NOTE.—Rate for bankers' acceptances, 2 to 4 per cent. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

INDEX. Pago. Page. Acceptances, distribution of, by sizes, maturities, Federal Trade Commission and Federal Reserve etc 63-65 Board, collaboration between 21-23 Assessment for expenses of Federal Reserve Board. 23, 24 Fiduciary powers granted by Board 20 Bank of England as foreign agent 5 Gold imports and exports 71, 72 Bankers' acceptances, growth of use of 5,6 Gold settlement fund 25-27 Business conditions throughout the 12 Federal Re- Governors of Federal Reserve Banks, meeting of... 7 serve districts : 33-56 Informal rulings of the Board: Charts: Purchase of acceptances 28 Commercial paper, acceptances, and other in- Group insurance 28 vestments held .' 57 ! Differencial as to acceptances 28 Reserves and net deposits of Federal Reserve I Acceptances against bullion 29 Banks 57 Purchase of warrants from member banks 29 Clearing plan, operation of 6 Compensation of member bank officers 30 Commercial failures during November 19 Acceptances, security for 30 Commercial paper, distrib ution of 57-62 Law department: Discount rates in effect 74 Demand and wight bills 31 Directors of Federal Reserve Banks: Eligibility of warrants 32 ("lasses A and B elected ^ 7, 8 litigation involving constitutionality of section Class C appointed 7 11 (k) of act 32 Dividends declared by Federal Reserve Banks 4 National bank charters granted 20 Earnings on investments of Federal Reserve National banks, statement showing 100 largest 19 Banks 73 Resources and liabilities of Federal Reserve Banks. 67, 68 Federal Reserve Agents, meeting of 4 Review of the month 1-4 Federal Reserve Agents' accounts, statement of 69, 70. Trade acceptances, increased use of 8-10 Federal Reserve Bank statements 67, 68 Treman, R. II., extract from address of, on trade ac- Federal Reserve Board, assessment for expenses of.. 23, 24 ceptances 9,10 Federal Reserve note account of each Federal Re- United States bonds, purchase of 5 serve Bank 69, 70 I War loans of foreign countries 10-19 o Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis