Federal Reserve Bulletin, 1917-02

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

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

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

TABLE OF CONTENTS. Page. Review of the month 75 Immediate availability of drafts 78 New national bank examiner appointed 80 Status of clearance system 80 Purchase of United States bonds 80 Securities of foreign governments, policy of Board concerning 82 Shipment of unfit Federal Reserve notes for redemption 82 New form showing change in reserve position 83 Advantages to State banks entering the Federal Reserve System 84 Receipts and disbursements of the Federal Reserve Board 87 Earnings and expenses of Federal Reserve Banks 89 Gold settlement fund 94 Proposed amendments to Federal Reserve Act 98 Recommendations of Federal Advisory Council on proposed amendments 106 Amendment as to reserve provisions 109 Relation of subtreasuries to Federal Reserve Banks 110 Commercial failures in 1916 113 Informal rulings of the Board 114 National bank charters granted 115 Operation of clearing plan 115 Fiduciary powers granted 115 Law department 116 Business conditions throughout the Federal Reserve districts 119 Distribution of discounted paper 135 Acceptances, distribution of 141 Federal Reserve Bank statements 145 Gold imports and exports 149 Earnings on investments of Federal Reserve Banks 151 Discount rates in effect 152 IV Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

VOL. 3 FEBRUARY 1, 1917. No. 2 REVIEW OF THE MONTH. net gold imports $19,316,000. The detailed figures for the movement since the opening of Proposed amendments to the Federal Rethe war are as follows: serve Act have been completed, several not at first included in the Board's program have been Gold imports and exports of the United States from Aug t added to those finally submitted; the annual 1, 1914, to Jan. 12, 1917. report has been completed and is now in the [In thousands of dollars.] hands of the printer. A complete review of the working of the Federal Reserve System for Excess the year, including a report from the chairman Imports. Exports. im o p v o e r r ts of each Federal Reserve Bank, has been pre- exports. pared and put into form for publication in con- Aner. 1 to Dec.31,1014 23,253 104,972 81,719 nection with the annual report itself, during the Jan.1 to Dec.31,1915 451,955 31,426 420,529 Jan.1 to Dec.31,1016 685,745 155,793 529,952 past month. In explanation of the suggested Jan.1 to Jan.12,1917 51,712 13,015 38,007 amendments Governor Harding has been given Total.. 1,212,065 305,800 906,859 three formal hearings by the Committee on Banking and Currency of the House of Repre- These importations have been drawn from sentatives, and has arranged for similar con- a variety of sources. They have been primaferences with the Committee on Banking and rily due to the continuing balance of trade in Currency of the Senate. Elsewhere in this favor of the United States. New foreign issue is printed the complete text of the amend- loans since offered have furnished additional ments to the act as recommended by the Board means of checking further gold movements and as introduced in Congress, together with for the present at least. Current announcean explanatory statement made public at the ments indicate that these loans are to be cast time the amendments were introduced. The in an investment form. It is therefore to be recommendations thus made constitute, as a expected that investments in the now securities whole, the Board's program of policies de- offering will be made with the clear undersigned to provide a means of dealing with the standing, on the part of the community that gold situation, as affected by the supplies of they can not properly be regarded as reprethe metal which continue to be so largely senting commercial banking resources immediimported. ately convertible into cash. The inward gold movement has continued The question of what general policy should unabated during the four weeks be pursued by the banks of the country, and ending January 12, 1917, total particularly by the Federal Keserve Banks, gold imports for the period— in view of the gold situation and the con- $131,907,000—exceeding the gold exports by tinued expansion of bank loans promises to $112,357,000. The corresponding figures for continue to be a mattter of first importance for 1916 are: Total gold imports $29,769,000 and some time to come. The Board's view of the 75 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

76 FEDERAL KESEEVE BULLETIN. FEBRUARY 1, 1917. general situation has been fully set forth along those lines with very good results, and during the past few weeks, and its program acceptances and rediscounts have been reof action with respect to legislation lias been duced by about $40,000,000 since they reached made clear. It is evident, however, that the their highest point, early in December. So immediate policy of the Federal Reserve Banks long as the present ease continues there should in regard to discounts and open market opera- be little difficulty in continuing the present tions must be shaped in consonance with the polic}7. By permitting the open market to Board's ideas as to the general situation. absorb the bankers7 acceptances, the additional In view of the fact that tire rate for bank- object is gained of acquainting member banks ers' acceptances recently main- with dealing in acceptances and their becoming teined * *» Federal Reserve accustomed to investing in them. Banks has been somewhat high- Investment operations of the Federal Reer than the open-market rate, the holdings of serve Banks for the four weeks Transactions at acceptances by the Federal Reserve Banks ending January 19 were, in Reserve Banks. have been materially reduced during the past accord with the policy just outweeks. During the month, December 12 to Janlined, on a considerably smaller scale than for the uary 12, as already seen, the net gold imports four weeks immediately preceding. This may be into the United States amounted to about seen from a comparison of the figures of total $112,000,000. Excess reserves have materiearning assets held by the banks on December ally increased in consequence. It may be 29, 1916, $222,082,000, and on January 26, assumed that this plethora of gold is not en- 1917, §181,426,000. The net liquidation'in all tirely a natural one and that much of it will be classes of investments for the four weeks under absorbed in consequence of issues of new securidiscussion amounts to $40,656,000. Liquidaties, after which the country will probably wittion of bills discounted and bought in open ness again the same development that has been market was even greater, as indicated by the characteristic of similar periods in the recent following table showing the total holdings of past—a condition in which the deposit and bills by each Federal Reserve Bank on Decemloan structure will again expand so as to absorb ber 29, 1916, and January 26, 1917: largo portions of the new gold. There is general agreement that this continuous and rapid growth of deposits and loans is I Doc. 29,191C. Jan. 20,1917. Decrease. not without danger. With the present ease Boston 816,452,000 ¥14,2S8,000 92,104,000 of money, it would appear, therefore, to be a New York 48,525,000 29,100,000 19,419,000 Philadelphia ! 10,603,000 9,520,000 7,143,000 wise policy to permit the earning assets of Cleveland | 10,953,000 7,831,000 3,122,000 Richmond | 6,573,000 7,838,000 1 1,265,000 the Federal Reserve Banks to be reduced | Atlanta I 7,044,000 0,031,000 1,013,000 Chicago I 14,028,000 9,358,000 5,270,000 by a substantial percentage, and thereby to 1 St. Louis I 8,095,000 6,099,000 1,990,000 Minneapolis I 8,10.2,000 7,78.1,000 321,000 absorb, temporarily at least, an equivalent Kansas City • 4,400, 000 3,508,000 838,000 Dallas ." i 3,020,000 2,579,000 441,000 amount of the newly imported gold. Of course San Francisco 12,632,000 9,409,000 3,223,000 such a policy will be carried out in a careful Total. 157,093,000 113,408,000 44,285,000 way, and no definite figure to which the in- 1 Increase. vestments of the Federal Reserve Banks should be reduced can be set. Changes in conditions Gains of §3,274,000 shown in the amount may occur at any moment which may render of municipal warrants ami of $355,000 in the it necessary to reverse such a policy or to apply amount of United States securities owned it even more energetically. During the past account for the smaller total decrease in total few weeks Federal Reserve Banks have operated investments shown above. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FEBUCAUY 1, ii)il FEDEBAL RESERVE BULLETIN. 77 In continuation of similar statements, there Great Britain. The exchange situation bc- „ are herewith {riven the most twceii the United States arid various foreign Reserve condi- , -, . i . , countries has, however, developed in such a t j ora recent aata showing changes way as to make further action at an early date during January, 1917, in the desirable. This situation has found special illusreserve condition of banks in the principal east- tration in quotations for exchange on certain ern cities. On the whole the position of these South American countries, as well as on. Spain, banks about the end of January appears and in a lesser degree, in oriental exchange restronger than a month before. Thus the lationships. The policy which is being recomreserve percentage of the 60 banks forming the mended by the Board for the purpose of im- New York Clearing House Association—as proving those conditions is that of receiving indicated by the ratio of their total reserves gold at Federal Reserve Banks, for account of to their net demand deposits—rose from 20.5 designated foreign institutions of the countries per cent on December 23, 1916, to 22.3 per with which such exchange relationships are cent on January 6, and to 25.2 per cent on established. Gold so received is "eax-mark- January 20, 1917. These percentages are od"—that is to say, it is held as a special or based upon returns from 31 banks which are trust fund, remaining thus the property of the members of the Federal Reserve System and foreign institution by which deposited, and 29 nonraembers. Similarly, reports of the being' hold to avoid unnecessary, costly, or New York State Banking Department for the dangerous transportation in the belief that State banks in Greater New York indicate a eventually every purpose will bo served by regradual rise of the reserve percentage from 26 taining it in the United States. An extension per cent on December 30, 1916, to 28 per cent of those relationships with foreign banks is on January 13, followed by a decline to 26.6 per probable as soon as conditions permit, the cent on January 20, 1917. Reports for the Board's policy in this regard being the same trust companies in Greater New York are even us that already announced when similar probmore favorable, the reserve percentages showlems have been under consideration on former ing a steady rise for the four weeks from 21.7 occasions. to 26.9 per cent. As already stated in a previous number of The average excess reserves of the 34 national the Federal Keserve Bulletin, banks and 7 trust companies, constituting the Work Hinder the certain appeals made to the Philadelphia Clearing House Association, dur- Clayton Act. Board under the terms of the ing the same period, steadily increased from Clayton Act had been only temporarily settled §19,323,000 to 844,406,000, while like figures during the early autumn, it being understood for the associated 10 national banks and the that further action might bo taken with respect the Old Colony Trust Company of Boston, all to the directorships the status of which was thus members of the Federal Reserve System, in doubt, after more opportunity had been show an increase for the four weeks from afforded for investigation and discussion. It $25,886,000 to $42,314,000. was agreed that the matter should be reconsid- Further effort has been made by the Federal Reserve Board during the past ered on or about January 1, 1917. The cases in Connections , , ,-, c~ « \ abroad monvt1h toward the envelop- question were those of certain directors attached ment of its policy with re- to large institutions whose operations covered a spect to foreign connections. This would in wide extent of territory, and which might, thereany event be a logical continuance of the policy fore, be theoretically considered to be in comalready announced and exemplified in the pro- petition with one another at some point or jected arrangement with the Bank of England points in their common field. Further inveswhereby the latter institution would act as for- tigation of the matter convinced the Board eign agent of the Federal Reserve System in that the situation was one that was likely, in Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

78 FEDEEAL RESERVE BULLETIN. FEBRUARY 1,1917. some degree at least, to be affected by the proc- bank, the vacant directorship at which is soon ess of shifting reserves from city correspond- to be filled. Salary readjustments for the ents to Federal Reserve Banks, which, under year 1917 have been approved and notice in provisions of existing law, is to be consum- accordance therewith sent to the Federal Remated on November 16, 1917, or sooner should jserve Agents to be communicated to the rethe amendments recommended by the Board spective boards of directors. All existing be enacted. It was, therefore, thought best designations of Federal Reserve Agents and to continue for not to exceed another year, the Deputy Federal Reserve Agents not altered tentative approval which had been given to the through the retirement of former incumbents retention of these directorships by the directors and the appointment of new ones, have been making applications, though it was indicated renewed and confirmed for the 3^ear 1917. in each case that the consent so accorded was Reserve bank dividend liabilities, which have tentative only, and that further investigation been a matter of discussion and consequently would bo undertaken for the purpose of ar- unsettled, as a result of the transfer of member riving at a final conclusion. In fact, here, as banks from one district to another, have been elsewhere, the Board's work with reference to adjusted upon conditions arrived at hy disthe application of the Kern amendment to the cussion and mutual agreement between the Clayton Act must be regarded as a continuing Federal Reserve Banks affected by such operation which can never be definitely fin- changes. ished. New facts or evidence bearing upon the The application of the. First National Bank business of given institutions may at any time jof Boston to open a branch at Buenos Aires, develop, or the natural growth of the business |Argentine Republic, was granted by the Board of given institutions may be such as to bring jon January 29. them into substantial competition, although j they were not previously regarded as being so. Immediate Availability of Drafts. It will, therefore, naturally be necessary from time to time to revise the decisions already Acting upon a report submitted by a commade, or conditions may be such as to neces- mittee appointed by governors of Federal Resitate the revocation of permission already serve Banks, the Federal Reserve Board on granted in certain cases, in order to deal ap- Januar3^ 23 approved a plan for making immepropriately with new conditions without at the diately available at par drafts drawn b}^ member banks on Federal Reserve Banks. While same time subjecting some directors to a rule it was recommended by the committee of govdifferent from that applied in the cases of others. ernors that at the outset the privilege of draw- Various conferences have Internal affairs of ^ ^ j ing such drafts should be limited to country fe h fe p d R the system. / , . banks, or, in other words, to those carrying a serve Board auring the past 12 per cent reserve, the Board suggested that month with representatives of Federal Reserve all member banks be permitted to participate Banks. On January 22-23 a special commit- in the arrangement, with a limitation of $10,000 tee of five, selected from the governors of the per day as the total that may be drawn by any banks, held a session at Washington for the one bank. The letter of the Governor of the purpose of considering the matter of immedi- Board to the chairman of the committee, sent ate credit between Federal Reserve Banks for out on January 25, is given below. Following it is the report submitted by the committee. checks drawn on Federal Reserve Banks. In addition to the committee, Gov. Aiken, of Other conferences relating to special matters Boston, was present at the conference. of pending interest have been held from time The Federal Reserve Board this afternoon to time with representatives of the various approved and adopted the report of the combanks. The choice of Class C directors has mittee of governors in the matter of making been completed with the exception of one Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FEBRUARY 1, 1917 FEDERAL RESERVE BULLETIN. 79 immediately available at par drafts drawn by At the last conference of governors there was member banks against Federal Keserve Banks, a joint session with members of the Federal Rewith one modification, to wit, that all member serve Board, at which the above-mentioned banks and not merely those which are country topic was discussed, and at that time the folbanks, may be allowed to participate in the lowing vote was adopted: arrangement, the limitation, however, in all " Voted: That the chairman be authorized to cases to remain at $10,000 per day as the total appoint a committee of five to confer with the that may be drawn by any one bank. Federal Reserve Board and assist in preparing The Board regards the plan suggested by the a plan in connection with the immediate availagovernors' committee as the first and essential bility of drafts on Federal Reserve Banks." step that must be taken, and suggests that the After informal discussion of the plan as outcircular which you propose to send out state lined by Gov. Seay, it was the unanimous opinclearly that it is proposed to develop the plan ion of this committee that when the final transand that the limitation adopted is not intended fer of reserves becomes effective, in accordance to be permanent, but only a temporary safe- with the amendment which is now before Conguard. It might be well to point out also that gress, some machinery should be in readiness to as the limitation to $10,000 per day would to a provide for the transfer of funds for such banks great extent prevent the larger banks in the as have been in the habit of using drafts on cencities from making use of the new facilities, the tral reserve cities; and in conformity with this country banks will be the immediate benefi- view the committee unanimously agreed upon ciaries. The Board would suggest that the the following plan: circular, which should contain a facsimile of the (1) That the privilege of drawing "Federal proposed form of draft, be issued as soon as it Reserve exchange" drafts should be limited to can be prepared, and that the plan be made the country banks, or, in other words, to those effective as early as possible, and not later than banks carrying a 12 per cent reserve; April 1st. The Board feels it is important that (2) That the drafts should be limited as to Federal Reserve Banks should get themselves the amount drawn in any one day by a member in readiness to extend to their members more bank to $10,000; of the facilities which have hitherto been given (3) That the drafts should be drawn by memby city banks to their country correspondents, ber banks upon their own Federal Reserve such as the collection of drafts and maturing Bank and made receivable for immediate availpaper, and the Board believes that it would be ability at par at any one Federal Reserve Bank well for a statement regarding this to be made specified in the draft; in the circular. It is understood that the cir- (4) That a special uniform form of draft be cular will be prepared and signed by the com- adopted by all the Federal Reserve Banks, such mittee of governors who made the report and drafts when drawn upon this form to be the that copies of it will be sent by the committee only ones which arc receivable for immediate to each of the Federal Reserve Banks for dis- credit at par; tribution. (5) That the drawing bank be required to The Board will be obliged if you would give immediate advice to its Federal Reserve kindly have a draft of the circular sent to it for Bank of all "Federal Reserve exchange" drafts its information before it is made public or drawn, and that such drafts be immediately distributed. charged to the member bank's account on receipt of advice; A meeting of the committee for discussion of the (6) That this plan become operative when plan to make drafts upon Federal lleserve the final transfer of reserves has become effec- Bamlcs accei)taMe to immediate availability at tive and be made available to such member var in all Federal lleserve Banks. Meeting banks as may agree to terras formulated by the held Monday, January 22, 1917, Washington, Federal Reserve Bank. I). C, at 10.25 o'clock a. m. The committee then discussed whether it would be necessary to immediatelv inaugurate Present: Messrs. Treman (chairman), Mc- daily settlements in the gold-settlement fund, Dougal, Seay, Ithoads, Fancher, McKay, and and, on motion by Gov. Seay, it was moved and Hendricks. Mr. Heudricks was appointed sec- carried that, in the opinion of the committee, retary to the meeting. under the existing conditions and the terms 77593—17 2 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

80 FEDERAL RESERVE BULLETIN. FEBRUARY 1,1917. above recited, there would be no necessity for the United States, and we hope that within daily settlements through the gold-settlement 90 days the check clearing system will be fund at the present time. comprehensive and all embracing. It is only The committee next considered the advisa- fair to say that a number of banks, particubility of putting into operation at this time the larly those in the smaller towns, are not yet Gidney plan of a silver and legal fund. After reconciled to the check clearing provisions of discussion, on motion of Gov. Seay, it was section 16 of the Federal Reserve Act which moved and carried that, under existing condi- the Board has endeavored to put into full tions, there is no necessity for establishing such operation. It has been the custom of these a fund at this time. banks to make an exchange charge in remitting for checks drawn on themselves, while under the new system they are obliged to remit to Federal Reserve Banks at par. It National Bank Examiner at New York. is a fact, however, that in most cases country banks, in order to receive these checks from Hon. William P. Malburn, Assistant Secrethe city institutions where they are concentary of the Treasury, in charge of fiscal trated, have been obliged to carry deposit bureaus, resigned on January 24 to accept accounts with the city banks upon which, as appointment as chief national bank examiner a rule, they receive interest at the rate of 2 per cent per annum. A considerable portion for the Second Federal Reserve District, with of the available funds of the country banks headquarters at New York. Mr. Malburn, who are therefore invested at this low rate of takes the place of Mr. Charles Starek, was interest, in order to enable them to hold the appointed Assistant Secretary of the Treasury collection business. Under the system proin March, 1914, and prior to that time prac- vided for in the Federal Reserve Act it will no longer be necessary for any bank to carry tised law in Denver, Colo. an account with a larger bank in order to control collections, and thus the funds which are now represented by these accounts with Status of the Clearance System. city banks will be available to the country banks for loans to their own customers at In answer to a letter of inquiry from a leading home at much higher rates, of course, than western firm doing a large wholesale dry goods 2 per cent per annum. While it is only natural that the country banks should object to the business, the following statement of the present loss of a direct profit to which they have been status of the collection system under the accustomed, I can not but feel that if the new Federal Reserve Act has been transmitted by plan is given a fair trial, matters will adjust a member of the Federal Reserve Board: themselves naturally, and that by reason of the ability of the country banks to make a greater The check clearing and collection plan which volume of loans at home their profits will not was established by the Board last year and be materially decreased, and in many instances which began operations on July 15, has so far may actually show an increase. fulfilled the expectations of the Board, and has, I think, demonstrated its feasibility and usefulness. The collection system is not yet complete, as the Federal Reserve Banks do not handle Purchase of United States Bonds. checks on all State banks and trust companies, In an announcement made on January 9, although the total number of banks on their lists now aggregates more than 15,000. The the Federal Reserve Board advised the 12 Board has, however, formulated a plan which Federal Reserve Banks that it will not require is dependent somewhat upon the effect of a them to purchase during the year 1917 more proposed amendment which it has transmitted than $15,000,000 of United States bonds offered to the Committee on Banking and Currency for sale by member banks through the Treasin the Senate and House, which will enable the Federal Reserve Banks to collect checks urer of the United States. It will require drawn upon any bank or trust company in banks to purchase on April 1, 1917, the full Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FEBRUARY 1, 1917. FEDERAL RESERVE BULLETIN. 81 amount of this $15,000,000, or so much Treasurer of the United States, when such bonds thereof as may be offered for sale for that are sold through the Treasurer of the United States under the provisions of section 18. quarter by member banks through the Treas- 3. The applications must be received by the urer of the United States. Treasurer of the United States at least 10 days Under the provisions of section 18 Federal before the end of the quarterly period at which Reserve Banks are not permitted to purchase the sale is desired to be made. Therefore for from member banks through the Treasurer the quarter ending March 31, 1917, applicamore than $25,000,000 of bonds in any one tions should be received by the Treasurer of 3rear, less the amount of bonds bearing the the United States on or before March 21, 1917. 4. It is optional with the Federal Reserve circulation privilege acquired in the open Board whether or not it shall require the Fedmarket during that year. There is no limit eral Reserve Banks to purchase the bonds imposed by law on the amount of bonds which offered for sale. may be purchased in the open market by 5. If the Federal Reserve Banks are re- Federal Reserve Banks. quired by the Federal Reserve Board to purchase the bonds, the price will necessarily be There were purchased and exchanged by par and accrued interest. Federal Reserve Banks for the quarter ending 6. The aggregate amount of such bonds December 31, 1916, $18,597,200, divided into which the Federal Reserve Banks can be re- $9,301,000 of one-year 3 per cent notes, and quired or permitted to purchase is limited to $25,000,000 in any one year, but this aggregate $9,306,600 in thirty-year 3 per cent conversion amount may furthermore be reduced by the bonds. This amount of conversions was made amount of bonds bearing the circulation privipossible through the announcement of the lege purchased during the same year by the Board that it would approve for conversion Federal Reserve Banks in the open market. all, or any portion, of the banks' full annual The Federal Reserve Board has announced allotment as of January 1, 1917, or the begin- that it will not require Federal Reserve Banks to purchase during the year 1917 more than ning of any other quarterly period. $15,000,000 of bonds offered for sale by mem- A circular relating to this subject sent out ber banks through the Treasurer of the United by one of the banks is reprinted below: States. It will, however, require Federal Section 18 of the Federal Reserve Act pro- Reserve Banks to purchase on April 1, 1917,, vides that any member bank desiring to retire so much of that amount of bonds as may be the whole or any part of its circulating notes offered for sale through the Treasurer on or may file with the Treasurer of the United before March 21, 1917, provided such bonds, States an application to sell for its account at added to the amount of bonds bearing the par and accrued interest United States bonds circulation privilege purchased by Federal securing circulation to be retired. Reserve Banks in the open market during the It seems appropriate at this time to issue first quarter do not exceed $25,000,000. blank forms for the use of member banks in Though there is no legal limit on the amount this district in making applications during the of bonds which may be bought by Federal year 1917, together with suggestions concern- Reserve Banks in the open market, in order ing the procedure to be followed. In making that member banks may have an opportunity applications member banks should bear in to sell the maximum amount of bonds under mind the following points: section 18, the Federal Reserve Banks will 1. The only bonds that are eligible for sale refrain from purchasing 2 per cent bonds in the in this manner are United States bonds which open market until after March 1, 1917, but will at the time of application are actually securing thereafter feel at liberty to make such purchases circulation of national-bank notes to be retired. in the open market. Therefore it is suggested 2. The application should be forwarded di- that member banks desiring to retire their rectly to the Treasurer of the United States, circulation during the year 1917, under the Washington, D. C. provisions of section 18 of the act, file their Special attention is called to the fact that applications with the Treasurer of the United national banks are not required to maintain a States before March 1, 1917, and at the same minimum amount of bonds on deposit with the time advise the Federal Reserve Bank of their Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

82 FEDERAL RESERVE BULLETIN. FEBRUARY 1,1917. district the amount of each application to the strengthening of the general banking situation— Treasurer in order that the Federal Reserve a question concerning which it felt the banks Banks may have prompt knowledge of the were entitled to a knowledge of its opinion. total amount of bonds offered to the Treasurer The powers of national banks, however, are of the .United States, and thus be enabled to clearly"*defined by law, and the Board's statearrange their open market purchases with ment is in no sense a regulation controlling the regard to the best interests of member banks. action of individual banks whose directors are There are inclosed herewith original and authorized, within the limitations of law, to duplicate forms of appKcation to the Treasurer determine the character and volume of their of the United States, for the sale of United investments. It is assumed, however, that States bonds; also blank form of resolution any well-managed bank in making investments authorizing application for such sale and the will have due regard to its ability to respond retirement of circulation secured thereby. to all demands which may be made upon it in The original application and copy of resolu- the ordinary course of business or which may tion, certified under seal, should be sent direct reasonably be expected to arise in the future. to : the ^Treasurer of the United States, Wash- JANUARY 13, 1917. ington^lD. C. Duplicate form of application should be filled out and signed and forwarded to this bank. Shipment of Unfit Notes. The Federal Reserve Board and the Treas- Securities of Foreign Governments. ury Department have agreed upon a plan, the details of which are set forth in the following There is reprinted below for the information letter, whereby Federal Reserve Banks may of banks and the public a letter sent out by the forward unfit Federal Reserve notes of other Governor of the Federal Reserve Board in reply Federal Reserve Banks directly to Washingto an inquiry received from a national bank on ton for redemption: the Pacific Coast as to the Board's policy con- In January, 1916, a plan was formulated to cerning obligations of foreign governments: permit Federal Reserve Banks to forward Your letter of the 6th instant was duly their own unfit Federal Reserve notes direct received and has been considered by the Fed- to the Treasurer of the United States for reeral Reserve Board. You ask whether the demption. That plan, however, did not perstatement of the Board to which you refer was mit a Federal Reserve Bank to ship to the intended merely to call the attention of the Treasurer Federal Reserve notes issued by any banks to the possibility that certain foreign other Federal Reserve Bank. bills although short-term on their face, might Section 16 of the Federal Reserve Act probe subject to renewal or might be refunded into vides in part that, whenever a Federal Reserve long-time obligations; or whether, on the other Bank receives Federal Reserve notes issued by hand, the statement was intended to express another Federal Reserve Bank such note shall absolute disapproval of all such investments. be returned to the Federal Reserve Bank of You state, further, for the information of the issue for credit or redemption. In order to avoid Board, that your bank is contemplating the a roundabout shipment of Federal Reserve purchase of a small block of foreign govern- notes, first, from a receiving Federal Reserve ment securities with funds that you can not Bank to the reserve bank of issue, and then from very well employ otherwise at present, with the bank of issue on to Washington for redempthe expectation of reselling if you should need tion, the following plan which permits a receivfunds for other purposes. ing Federal Reserve Bank, under power of In reply I would say that there has been sent attorney, to forward unfit Federal Reserve to j you a copy of the Federal Reserve Bulletin notes of another Federal Reserve Bank direct for December, 1916, containing the statement to the Treasurer for redemption, has been apof the Board to which you refer, from which you proved by the Treasury Department and the will see that the statement was intended as an j Federal Reserve Board. expression of the Board's views on a question 1. Each Federal Reserve Bank shall give to of a broad policy touching the protection and each other Federal Reserve Bank a power of Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FEBRUARY 1,1917. FEDEBAL RESERVE BULLETIN". 83 ! attorney authorizing such other bank to act I (c) As soon as the Richmond bank makes as its agent in forwarding any of its unfit j the shipment described in paragraph (b) it Federal Reserve notes to the Treasurer of the I charges the account of the Federal Reserve United States for redemption. This power of | Bank and so notifies Chicago. attorney may be in any form agreed upon by i (d) Upon receipt of the notice forwarded the respective Federal Reserve Banks and may under paragraph (c) Chicago credits the define the standard to guide the forwarding account of the Richmond bank and increases bank in determining what Federal Reserve I on its books the item " Mutilated currency notes of the issuing bank shall be considered i forwarded for redemption." unfit. The forwarding bank shall, at the time I (e) The Treasurer, on receipt of the notes of shipment, notify the issuing bank that the I shipped by Richmond, will acknowledge receipt shipment has been made for and in its name to i to Richmond, will advise both Chicago and the Treasurer, and shall charge the account of ; its Federal Reserve Agent simultaneously that the issuing bank for the amount of notes thus | the notes have been received for the account of shipped. The issuing bank shall then credit | the Chicago bank, and will redeem such notes the account of the forwarding bank, and shall I just as if they had been sent by the Federal increase on its books the item, "Mutilated I Reserve Bank of Chicago direct to the Treascurrency forwarded for redemption," just as : f redemption. urer or if it itself had sent unfit notes direct to the I (/) Upon receipt of the advice forwarded by Treasurer for redemption, | the Treasurer, as provided in paragraph (e) 2. The Treasurer, on receiving such notes, | the Federal Reserve Bank of Chicago and its will advise the forwarding banks of their Federal Reserve Agent will record the transreceipt. action in the manner outlined in a circular 3. The Treasurer will then complete the letter from the board dated March 24, 1916, transaction just as if the notes had been for- hereto attached. warded to him for redemption direct by the (g) When the notes have been redeemed the bank of issue, under the plan approved by the Treasurer will deliver them to the Comptroller Treasury Department and the Federal Reserve of the Currency in the name of the Federal Board in January, 1916. In accordance with Reserve Agent at Chicago and for his credit. the provisions of that plan, the Treasurer (h) The Comptroller of the Currency, upon will immediately advise both the Federal receipt of the notes from the Treasurer, will Reserve Bank of issue and its Federal Reserve notify the Federal Reserve Agent that they Agent of the receipt of the notes sent to him have been received for destruction, will arrange for redemption, and will redeem the notes for for their cancellation and destruction, and will the account of the bank of issue, not for the credit the account of the Federal Reserve account of the forwarding bank. Agent of Chicago with the amount of the notes 4. After the notes have been redeemed the when destroyed. Treasurer, acting under the powers of attorney JANUARY 15, 1917. provided for in the plan governing the redemption of unfit notes shipped direct by the Federal Reserve Bank of issue, will forward such notes to the Comptroller of the Currency for cancel- Reserve Position at Boston. lation and destruction, advising the Federal Reserve Agent of this action. | This statement was given to the press on By way of illustration, a specific transaction I January 9: would be conducted as follows: I The Boston clearing-house banks have (a) The Federal Reserve Bank of Richmond ! adopted a new form designed to show the receives from one of its member banks a deposit of unfit notes of the Federal Reserve Bank of change in their reserve position from week to Chicago. week, as given at the bottom of their usual (&) Acting under the power of attorney clearing-house bank statement. In the past given to it by the Chicago bank, the Richthey have announced the deficiency or excess mond bank forwards these unfit notes to the Treasurer for redemption for and in behalf of of their vault cash, and also their deficiency or the. Chicago bank. excess with the Federal Reserve Bank. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

84 FEDERAL RESERVE BULLETIN. FEBRUARY 1.1017. Since the adoption of the ruling making it transformed (or rather is in the process of optional with member banks to keep reserves transforming), what was undoubtedly the worst and most inadequate banking system in in vault or in the Federal Reserve Bank, -the existence in any great civilized country, into Boston banks have shown a deficiency in their one of the best and most adequate systems vault fcash and an excess with the Federal Re- which has ever been devised. serve Bank. It has been felt that these items I know perfectly well that up to the present might properly be consolidated, just as similar time my bank has been in a position to obtain (as far as it has had occasion to use them) all figures are combined in English bank stateof the benefits of the system without being ments, and that such consolidation would be a called upon to contribute to its support, and final recognition on the part of the clearing without being required to assume any of the house that deposits with the Federal Reserve responsibilities placed by law upon national Bank are practically interchangeable (so far as banks. reserve availability is concerned) with cash in vault. When the matter was recently called ARGUMENT BASED ON SELF-INTEREST. to the attention of the clearing-house committee As this is purely a business proposition, I in Boston, the members acquiesced in the sug- am making no appeal upon the grounds of gested change. This is regarded as a further sentiment. I am raising no ethical question indication of the desire of the larger New Eng- of our right to continue "to reap where we have not sown, and gather where we have not land banks to cooperate with the Federal Restrewn/' but I base my argument solely on the serve Bank in every way possible. grounds of intelligent self-interest. Since the Federal Reserve System was established, there has been an abundance of money. State Banks as Members of the Federal Reserve Every bank doing a reasonably large business System. has had as much money as it could use to advantage, and many have had more. Under The following letter sent by an officer of one these circumstances, there has been little or no occasion for discrimination. There has been of the reserve banks to a State institution little or no reason why members of the Federal which had made inquiry with respect to the Reserve System should attempt to limit the advisability of entering the Federal Reserve benefits of the system to themselves. As a System, is herewith published as furnishing a matter of fact, with resources so abundant, useful summary of the present situation regard- the necessities of the nonmember banks have been a much needed source of profit to member ing membership of State banks: banks. I have received your favor of , and I In addition to this, up to the present time, assure you that it will give me great pleasure to the Federal Reserve Banks have found no way give you my views on the subject of the advan- to extend their fullest possible facilities to tages of " a State bank entering the Federal Re- their member banks, and at the same time to serve System." In order to do so, however, I confine the fruits of the system to the exclusive will take the liberty of changing the form of your use of member banks. But, will these condiquestion. I williussume that I am the respon- tions continue indefinitely ? sible head of a bank doing business under a I do not think so. No system of banking State charter, and have been called upon to has ever been devised, and, in my opinion, no state my reasons for advising my board of system of banking can be devised which will directors to apply for membership in the prevent business depressions, periods of string- Federal Reserve Bank in whose district my ency, or even panics. These are caused by bank is located. Stated as briefly as possible, activities outside of the banking business, my reasons for advising this action would be over which, in many cases, organizable human as follows: agencies have but limited control. First. After careful consideration and study If the time ever comes in which there is not a of the subject, I am satisfied that the estab- sufficiency of the good things to go all around, lishment of the Federal Reserve System has I am confident that the supply furnished by the Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FEBRUARY 1,1917. FEDERAL RESERVE BULLETIN. 85 Federal Reserve System will be confined, with REVOLUTION IN BANKING. much more care, to its member banks than has been the case up to this time. The most that Second. I have said that the establishment can be expected of any banking system is to of the Federal Reserve System is working a ameliorate the effects of business depressions beneficient revolution in the banking business (when they come), to prevent unnecessary pan- of this country. I do not think that the revoics, and to afford to the banks identified with lution has been entirely accomplished, because the system full and adequate protection to the the system can not be ideal and complete until extent to which the system is capable of afford- it embraces all, or practically all, of the eligible ing such protection. banking institutions in the country. The collection and clearing system—the most vexa- POSTPONEMENT OF ACTION. tious problem of banking—could be solved without difficulty if the State banks were in Some may say that it will be time enough to the system, and upon a basis which would join the system when trouble comes, but that work out the greatest economy possible to the is not my view of the case. We know that banks and the country. trouble is coming at some time in the future. I am not willing for my bank to wait until We do not know how suddenly the real army after the majority of the State banks have will follow the first scouts. We know that joined, for the reason that I have not the right now, while money is plentiful and conditions to expect another State bank to do what I are favorable, the Federal Reserve System is would be unwilling to do myself, or to be willing welcoming the State banks, and even urging to do it any sooner than I am willing to ,do it. them to join. We do not know what the atti- We do not conduct the internal business of our tude of the system will be, or, in fact, what bank on this principle, and we should not position it may be compelled to take in the face expect to derive benefits from this method in of radically changed conditions. Beyond all any other direction. Manifestly, if every question, if a considerable number of banks State bank waits for all of the others to set an should apply for admission at the same time example nothing will be done till the end of many of them would be obliged to wait. The time. In addition to these considerations, I necessary formalities incident to admission have pride in my bank, and I would far rather take time, and it could not be expected that see it reasonably near to the head of the prothese formalities would be waived or the vigi- cession than straggling in, a late comer, at the lance of the officers passing upon applications tail end. relaxed in the face of alarming condition. When the bill proposing the establishment RESTRICTIONS ON STATE BANKS. of a central bank was drawn, it was proposed to confine the membership to national banks, Third. I have examined carefully the proand violent protests were made in all parts of visions of the Federal Reserve Act with referthe country by and on behalf of the State banks. ence to State banks applying for membership If the bill embodying the Federal Reserve Act in the system, and. I have also carefully conhad contained a similar provision, excluding sidered the regulations of the Federal Reserve State banks from membership, the protest Board, made under authority of the Act. I would have been, if anything, more vehement. realize that in joining the system a State bank While at present they do not seem disposed to will surrender, at least in theory, certain enter, we know that they would fight against privileges which it enjoys as a nonmember; the establishment of any system which did not that it will be required to do certain things five them the privilege to enter. Down in oar which nonmembers are not required to do, and earts we all know that it would be better in that it will be governed by a few restrictions every respect if all of the banks were united in not applicable to nonmembers. I have not the one cooperative system. And we know that slightest objection to the requirements and our failure to enter limits the power, usefulness, restrictions, because they are founded upon and even the most economical operation of the principles which every prudent banker should system. Therefore, why should we not join indorse, and which any well-managed bank that system at a time when we are sure not would have no difficulty in observing, if it does only of' our ability to do so, but also of a prompt not already observe them without compulsion. and cordial welcome. Moreover, it is the violation of just those prin- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

86 FEDERAL RESERVE BULLETIN. FKIJRUAKY 1, 1017. ciples that has caused most of the trouble in QUESTION OF ELIGIBILITY. banks in which serious trouble has arisen. Moreover, if the time ever comes (and I think Fourth. It is understood on all sides that a it will) when the public (which consists largely general standing invitation is extended to all of our customers, and the customers of other State banks to join the system. Anyone banks) begins to make intelligent discrimina- familiar, however, with banking conditions in tion in the selection of institutions with which this district, and in fact, throughout the South to do business, I would like for the public to be (to say nothing of the districts which cover the assured that this bank is observing all of the rest of the country), knows perfectly well that principles referred to; and being a State bank, there are many State banks that could not and subject only to the restrictions and require- possibly join the system. It will not be necesments laid down in the State law, there is only sary for me to enumerate all of my reasons for one test by which an actual or prospective cus- saying this. I will only mention limitation of tomer can toll with absolute certainty that we capital and character of business. An examiare observing, and will continue to observe, nation of the published statements of many of those principles, and that is, whether or not we the banks, and a casual reading of the regulahave agreed to do so by becoming members of tions referring to State bank membership will the Federal Reserve System. In my opinion, make the matter plain to the veriest tyro in the the requirements, at which I understand some banking business. State banks have balked, can thus be turned It is a fact, however, not so generally known, into an armor of defense by those banks that that there are many State banks apparently become members of the system. qualified to join the system but to which admission would be denied upon the required RELATIONS WITH BOARD. preliminary examination. I am perfectly satisfied that my bank would be qualified to join the The fact that the Federal Reserve Board has system, and would be admitted promptly the power to alter, or amend, the regulations and without objection. I would like, nowever, with reference to State banks gives me no con- for the customers and the prospective cuscern whatever. So far the regulations for State tomers of my bank to be entirely assured of the member banks have been, if anything, more correctness of my opinion, and there is just one lenient than the regulations applicable to na- way in which they can receive this assurance tional banks. It has been suggested that the beyond the possibility of question. Federal Reserve Board should give to the nonmember banks some assurance that the regula- VALUE OF INDORSEMENT. tions will remain unchanged. This, in my opinion, is not only impracticable, but would This practical indorsement of the Federal be unwise, if it were practicable. The law and Reserve System which I would like to have the regulations, as they stand, provide that in may seem of comparatively little value under certain definite respects the State bank mem- existing conditions, but, as I have already said, bers shall conform to the requirement fixed for I do not think that the Federal Reserve System national banks. In other respects the Federal is a panacea for panics or periods of business Reserve Board has, under existing arrange- depression, although it unquestionably posments, the power to exercise a certain degree sesses the power to aid its member banks to of liberality to State bank members. Any law weather such storms, while the State banks which would curtail the power to regulate, have no such resource. When the next season would necessarily limit the power to exercise of trouble comes along, I am satisfied that the discretion in other directions, and the nonmem- protecting wing of the Federal Reserve System ber banks have always this safeguard—they ' will afford a comfortable, if not an absolutely have the privilege of withdrawing from the sys- ! necessary, shelter. The public in all parts of tem upon 12 months' notice. The existence of i our broad country has taken much interest in this privilege alone, without any consideration ! the system. They believe in it to a greater of fairness or prudence on the part of thei extent than the banks do, chiefly because they Federal Reserve Board (which fairness and i are the ones who have always 'suffered most, prudence have been conspicuous in all of its! and they, therefore, know better how to apprerulings), would effectively prevent the Board | ciate relief. They have faith in it in some from imposing any unreasonable, or unfair, ; directions to an extent which I can not help restrictions upon State bank members of the ! feeling is, if anything, excessive under present system. . conditions, while State banks, which far out Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FEBRUARY 1,1917. FEDERAL RESERVE BULLETIN. 87 number member banks, remain out of the sys- transfers of credit authorized and directed by tem. When the next storm cloud puts in its the auditor on the books of the Treasury Deappearance, and such an appearance is entirely partment. The term "commitments" where possible at or soon after the close of the European war, is it not reasonable to assume used covers all obligations entered into by the that the "public will begin to ask, "Are the Board for the periods stated. banks with which we are doing business in a position to obtain the benefits to be expected RECEIPTS. from our new banking system?" Unexpended balance Jan. 1, Although this letter has already exceeded 1916 §37, 289. 77 the limits of ordinary correspondence, I can not Assessments 192,153. 60 help feeling that it has, nevertheless, inade- Bulletin, subscriptions to.... 1,024. 70 quately covered the subject, which is as broad Reimbursements 10, 487. 26 as the banking business itself. Total available $240,945. 33 Receipts and Disbursements of Federal Reserve DISBURSEMENTS. Board. By fiscal agent 199,436. 35 Auditor's settlements 27, 501. 02 There is here given a statement of receipts and expenditures of the Federal Reserve Board Total disbursements 226,937. 37 in 1916. The total expense of the Board for Balances, Dec. 31, 1916, with Treasurer of United States the calendar year 1916 is shown on the detailed to credit of— statement of commitments to have been $212,- Fiscal agent 2,832.46 477.02. This figure includes a number of items Federal Reserve Board... 11,175. 50 which have of necessity been estimated. 14,007. 96 Under the Federal Reserve Act the Federal 240, 945. 33 Reserve Board is authorized to make semiannual assessments upon Federal Reserve GENERAL STATEMENT. Banks to cover its expenses. The first assess- Total available 240, 945. 33 ment for this purpose was made on November Receipts account of reimbursable commitments 10,487. 26 2, 1914. The funds of the Board are carried in a Total available for general expenses, special account with the Treasurer of the Federal Reserve Board 230,458.07 Commitments for general ex- United States, and transfers are made by the penses, 1916 $212,477. 02 Governor of the Board to the credit of the fiscal Commitments 1915 paid in agent as necessary. The accounts of the Board 1916 8, 720. 56 pass through the hands of the Auditor for the 221,197. 58 State and Other Departments and are given the Unencumbered balance Jan. 1,1917... 9, 260. 49 official examination required by the Govern- Unpaid commitments Dec. 31, 1916... 3,808. 80 Balance to credit reimbursable account. 938. 67 ment. The term " auditor's settlement" under "Disbursements7' covers settlements made by Unexpended balance 14, 007. 96 77593—17 3 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

88 FEEEEAL EESERVE BULLETIN". FEBRUARY 1,1917. Detailed statement of commitments. January. February. March. April. May. June. Personal services: ! Board and its clerks j $7,374. _ _ §7,374.98 810,977.76 $7,374.98 S7,354.15 $7,374.99 Secretary's office 2,516.65 2,516.65 2,433.32 2,258.32 1,683.32 1,683.32 nCnonunnesnell''ss noffffifiicfie . ! 1",866.66 1,866.67 1,866.67 2,066.66 2,066.67 2,066.67 Division of audit and examination, 1,466.66 1,254.16 1.254.16 1,254.16 1,254.16 1,254.16 Division of reports and statistics. 707.33 878.66 866.66 866.66 Division of issue 717.00 791.66 646.66 Messengers 315.00 315.00 315.00 Charwomen 60.00 60.00 60.00 Total i 14,934.94 Nonpersonal services: Transportation and subsistence of persons- Board and its clerks. Secretary's office Division of audit and examination., Division of reports and statistics. Counsel's office Messengers (car fare). Communication service: Telephone. Telegraph. Postage Printing, binding, etc. Contract repairs Electricity (light and power). Steam (heat) Other (nonpersonal service). Supplies: Stationery. Periodicals. Other., Equipment: Furniture and office equipment. Books. 10,562.96 July. August. September. October. November. December. Total. Personal services: Board and its clerks 37,374.98 §7,374.98 $7,425.04 $7,374.98 $7,375.05 87,375.04 $92,131.91 Secretary's office 1,958.33 1,958.33 1,983.34 2,563.33 2,577.23 2,051.07 20,783.81 Counsel's office 2,006.66 2,000.67 2,060.67 2,006.00 2,000.00 2,060.07 24,199.99 Division of audit and examination. 1,338.33 1,338.33 1,338.34 1,338.33 1,338.34 1,338.34 15,707.47 Division of reports and statistics... 905.00 905.00 905.00 825.83 926.06 930.07 10,273.46 Division of issue 658.33 728.33 728.34 691.00 648.34 648.34 8,272.98 365.00 365.00 338.00 327.00 365.00 305.00 4,035.00 Charwomen. 60.00 58.67 00.00 58.6G 58.67 58.00 714.00 Total 14,726.63 14,795.31 14,844.73 15,245.79 15,355.95 15,439.73 182,178.02 Nonpersonal services: Transportation and subsistence of persons- Board and its clerks 97.47 224.70 144.86 213.34 21.05 1,115.55 Secretary's office 25.05 94.05 Division of audit and examination 703.10 "540.* 99" 337.40 154.58 811.15 345.78 5,G83.40 Division of reports and statistics 19.20 04.55 83.75 Counsel's office.. 51.40 344.97 5.00 5.00 5.00 35.00 Communication service: Telephone 110.06 45.07 56.42 59.48 • 55.98 02.51 690.27 Telegraph 425.94 315.81 318.43 412.08 266.30 330.09 3,988.00 Postage 20.00 65.00 Printing, binding, etc 1,027.33 1,050.46 1,165.31 1,100.31 1,127.06 1,221.44 Contract repairs .82 28.75 9.87 .90 3.25 09.91 Electricity (light and power) 30.00 30.00 30.00 30.00 30.00 30.00 360.00 Steam (heat) 15.00 15.00 90.00 Other (nonpersonal service) 3.00 45.15 19.75 i 11.08 43.49 200.82 Supplies: Stationery 115.58 44.88 65.15 189.57 154.76 61.50 1,241.08 Periodicals 14.50 73.00 19.00 39.80 298.30 Other 16.60 17.16 90.30 05.39 15.20 20.54 545.70 Furniture and office equipment. 39.40 121.31 661.29 427.80 220.15 22.90 2,840.11 Books 3.15 108.00 5.00 189.20 Total 2,496.63 2,357.55 | 3,077.34 2,018.20 3,081.79 2,310.10 ;0,298.40 Grand total. 17,223.26 17,152.86 j 17,922.07 17,803.99 18,437.74 17,749.83 212,477.02 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FEBRUARY 1,1017. FEDERAL RESERVE BULLETIN. 89 EARNINGS AND EXPENSES OF THE banks; 31.5 per cent from acceptances bought .FEDERAL RESERVE BANKS. in open market; 22.3 per cent from United States bonds and Treasury notes, and 14.3 per Total earnings of the Federal Reserve Banks cent from municipal warrants, while 6.1 per for the calendar year 1916 were $4,955,343, cent represents profits realized from the sale while total current expenses for the same period and appreciation of United States securities were $2,495,835. Of this total $291,491 repowned. The remainder, 5.1 per cent, repreresents the estimated expenses of the transit sents commissions earned on acceptances and department for the period July 15 to Decemwarrants bought for other Federal Reserve ber 31 of the past year. This amount is re- Banks, charges for transfers of funds for turned to the Federal Reserve Banks through member and nonmember banks, penalties and special charges assessed against member banks interest on deficient reserves, and sundry smaller which forward checks to the Federal Reserve profits. Bank for collection. Aggregate net earnings Of the total expenses of operation, $559,949, of the banks, i. e., total earnings, less current or 28.3 per cent, went as compensation to the expenses of the banks proper,, were thus clerical staff and $495,560, or 25.1 per cent, as $2,750,999, or at the rate of almost 5 per cent salaries to bank officers. Nearly 10 per cent of on an estimated yearly average paid-in capital total expenses of operation, or $192,277, is repof $55,178,000. resented by the contributions of the banks for Three banks report net earnings in excess the support of the Federal Reserve Board. of 6 per cent on their average paid-in capital; Rent paid by all banks, except Dallas, totaled five banks show a rate in excess of 5 per cent, $164,965, or 8.3 per cent of the total expenses but less than 6 per cent, while two more banks of operation. Postage and printing, including show net earnings in excess of 4 per cent, but stationery, are the two other items next in below 5 per cent. Total current expenses are importance in the expense budget of the banks. composed of $1,975,992, expenses of operation; Current expenses are exclusive of $170,697 $298,007, the cost (including insurance, exexpended during the year in the purchase of pressage, etc.) of Federal Reserve currency additional furniture and equipment. The total issued, returned, and retired during 1916; written off this account during the year is $192,940, depreciation charges; and $28,896, the $185,440, leaving a balance on January 1, 1917, excess of disbursements of the transit departof $255,249. ments over net service charges received. Dallas owns a banking house, while Rich- Of the total net earnings of $2,750,999, the mond and Atlanta own ground for the erection banks applied §494,314 to charge off the balof bank buildings. The total amount invested ance of organization expenses carried over from in bank premises by these three banks is given 1915; $8,441 to pay dividends accrued on as $368,222, stock surrendered or canceled during the year; During 1916 a total of $230,778 was paid for and $1,487,402 in payment of dividends to the printing and shipping of Federal Reserve their members during the past year. The notes, while the total cost of notes issued to the remainder, $760,842, was carried to profit and banks and charged to current expenses was loss. This amount, combined with the adjusted $270,743. From November, 1914, to Decemtotal of $135,392 for January 1, 1916, gives a ber 31, 1916, the banks have paid $1,035,483 total profit and loss of $896,234 carried to for printing and shipping Federal Reserve notes January 1, 1917. and have charged off during the same period a Of the total earnings for the year 20.7 per total of $533,161 for notes issued, leaving thus cent was from bills discounted for member a balance of $502,322 at the beginning of 1917. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Earnings and expenses of each Federal Reserve Bank and of the system as a whole for the calendar year ending Dec. 31, 1916. CO o EARNINGS. Boston. New York. d P el h p i h la i - a. Cleveland. Richmond. ! i i (i O A n N c r t l l l e u e a w a d n n i t n a s g Chicago. St. Louis. M ap i o n l n is e . - City. Dallas. | I Sa c n i s F co ra . n- Total. i branch). Bills discounted—members.. 843,303 §37,368 828,391 818,004 3214,857 : §141,774 ! §124,452 §40,041 §00,938 §84,572 $205,232 S20.083 81,025,675 Bills bought in open market.. 230,857 530,484 198,243 100,993 29,171 | 52,474 ! 101,186 81,599 50,099 29,001 10,880 133,331 1,500,918 Investments: U. S. bonds and notes 57,194 81,645 81,081 144,844 39,175 I 40,725 ! 204,051 70,302 69,200 186,411 64,570 07,530 1,100,800 Warrants 78,578 214,122 09,183 110,925 3,495 i 5,102 i 90,700 31,019 34,207 14,300 737 | 49,773 708,807 Commissions received 10,559 42,387 154 \. 53,100 Profits realized on United States securities 20,575 j 43,515 35,034 37,229 12,517 1,530 I 00,175 21,050 48,872 1. 14,487 302,184 Sundry profits 3,148 i 1,128 5,407 5,101 12,543 20,186 | 60,419 34,887 23,539 1,145 I 25,450 4,780 197,739 Total earnings 450,214 950,049 417,939 429,156 311,758 201,945 ; 040,983 286,158 238,109 304,907 ' 300,875 ! 290,590 | 4,955,343 CURRENT EXPENSES. a Expenses of operation: Assessment account expensesFederalReserve Board, $17,704 839,029 j 818,362 $20,825 611,743 $8,547 §23,329 §9,750 §8,902 810,575 §9,065 313,780 §192,277 Federal Advisory Council (fees and traveling expenses) 401 1,103 I 30G 555 150 358 793 743 300 753 150 0,075 Governors' conferences (incl.traveling expenses). 915 2,885 | 749 1,580 1,445 1,096 1,208 1,392 1,245 1,301 2,90G 17,718 Federal Reserve Agents' conferences, incl. traveling expenses 332 048 519 321 183 299 j 393 417 423 014 1,044 5,473 Salaries: Bank officers 33,910 92,050 39,100 39,707 31,428 31,867 52,385 46,099 26,625 25,973 33,942 j 41,208 495,500 Clerical staff 43,109 103,099 52,398 39,044 38,388 39,738 05,311 37,2G4 29,277 40,223 37,885 [ 33,553 559,949 Special officers and watchmen 7,248 0,012 710 048 3,258 5,840 1,020 1,311 805 1,771 | 123 29,358 a. Allothcr 11,737 170 1,774 4,198 1,200 78 1,599 2,835 ! 23,597 Directors' fees 3,820 3,930 3,220 3,700 2,790 2,030 4,3G0 3,100 3,705 1,655 1,850 30,100 Directors' per diem allow- 1,880 Szi ance 1,120 1,040 820 1,840 2,038 080 1,040 990 2,385 1,210 400 14,583 Directors' traveling ex- 1,020 penses 772 1,245 2,505 2,251 1,018 1,155 1,486 3,028 1,394 j 17,637 (Xilicers' and clerks' travel- 1,288 ing expenses 1,993 059 558 913 407 1,840 595 598 1,145 033 1,234 ' 1,164 11,745 R L T T Po e e e e g s l l n e e t a t a g p l g r h f a e o o p e n h s e 1 1 2 1 5 0 , , , , 4 2 1 0 1 9 2 3 8 8 2 5 9 1 0 4 1 5 2 1 , , , 9 £ 7 9 8 1 0 4 5 0 0 6 2 9 8 1 , , , , 1 2 2 0 7 3 5 1 0 4 1 2 0 0 2 0 7 1 , , , , 0 5 8 2 2 1 0 1 1 P" 7 0 2 • 0 7 1 , , , 2 3 4 0 4 2 9 0 2 3 0 1 4 5 4 1 7 2 1 , , , 3 5 9 4 8 7 3 0 0 4 3 2 4 0 5 2 1 2 6 1 1 , , , , 3 5 5 3 3 2 9 1 8 8 8 1 5 8 2 1 7 4 , , 8 2 7 9 5 0 7 0 5 7 4 0 . 6 8 1 , , , 2 1 9 5 5 9 5 5 6 0 9 7 8 0 5 1 8 0, , • 3 0 8 5 5 5 5 0 0 0 2 1 0 0 0 2 0 , ,1 9 0 4 3 8 4 2 9 3 0 2 . | ! ! 1 4 2 1 , , , 4 5 7 4 7 0 2 6 8 3 7 0 1 7 2 1 10 6 1 1 4 2 4 1 9 , , , , , 5 4 2 9 0 5 2 2 6 1 3 1 3 5 4 Expressage 2,839 1,048 3,378 1,255 604 582 745 ! 533 825 11 123 ! 7,595 31,256 Insurance and premiums on fidelity bonds 1,701 3,125 3,415 2,393 i 1,041 1,192 5,904 2,199 ! 1,731 1,300 599 ' 1,227 26,433 Light, heat, and power 1,490 1,147 31 1,260 100 2,242 1,118 1,378 ! 432 9,264 Printing and stationery 8,480 20,067 0, (.48 12,246 I 6,852 5,473 9,964 5,278 i 0,198 4,301 2,900 •, 8,472 96,939 Repairs and alterations 731 200 087 241 200 1,201 347 j 719 301 228 | 5,133 10,452 All other expenses, not specified 8,779 25,537 0,041 3,334 i 3,025 8,823 12,585 3,151 j 3,109 4,422 | 6,612 | 3,322 ' 89,400 Total expenses of oper- i ation .... 157,285 378,077 164,983 144,354 ! 124,769 133,604 232,096 141,200 j 105,355 124,042 I 127,289 | 142,338 1,975,992 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Cost of Federal Reserve notes issued, including exprossa^o etc 15,141 95,240 16,600 3,738 18,248 12,167 5,113 10,720 9,866 20,436 14,443 49,031 270,743 Miscellaneous charges, account Federal Reserve note issues 075 12 938 1,003 2 132 522 1,050 981 19,907 Miscellaneous charges, account Federal Reserve hank note issues, includ- 5,791 1,500 7,357 Depreciation of furniture 21,852 70,707 15,653 8,097 4,514 4,442 25,000 3,355 5,353 4,350 1 17,028 12,589 i 192,940 Disbursements of transit department in excess of not service charges received 14,776 4,000 421 -1,033 7,967 100 2,665 28,896 Total current expenses, exclusive of amortization charges, account organization expense0" 194,953 571,738 202,239 158,742 146,498 150,213 270,698 157,031 320,574 355,219 100,320 207,004 2,495,835 Less disbursements of transit department 40,674 35,153 34,241 23,394 21,311 17,570 20,921 11,890 17,008 15,241 19,497 28,525 291,491 Current expenses of bant proper, exclusive of amortization charges, account organization expenses 154,279 530,585 167,998 135,348 125,187 132,637 243,777 145,141 103,500 139,978 M0, S29 179,079 2,204,344 O Net earnings for year 1910 295,935 414,004 249,941 293,80S 180,571 129,308 403,200 141,017 134,003 224,989 100,040 111,511 2,750,999 fcd Per cent of average paid-in capital 5.19 3.01 4.78 4.92 5.57 5.26 0.05 5.05 5.22 7.45 0.14 2. 84 4.99 Disposition of net earnings: Organization expen? es i charged oft in full 34 603 2123 770 31 517 55 774 97,169 32 341 2 f,fi 77$ 52 358 2 494 314 Dividends paid 127,113 128.458 143,237 197,922 198,840 300,040 31,100 57, 720 OfiJ707 131,920 43^730 1,487^ 402 Dividends "" accrued and paid on surrendered and cancelled stock 2,804 2,879 670 2,088 8,441 W d Total 37,107 250,889 159,975 199,011 197,922 201, 719 301,319 128,209 90,061 133,483 134,008 90,094 1,990,157 E 1? a lance of net earnings carried to profit and loss account 258,528 163,175 89,966 94,797 -It, Sol -72,411 41,887 12,748 44,542 91,500 32.038 15,417 700,842 a Profit and loss account, Jan. 1, 1016 —111 23,015 2 82,532 20 091 9 805 2 135 3Q2 Profit and loss account, .Tan. I, 1917 258,528 163,064 89,966 94,797 11,664 10,121 01,978 12,748 44,542 i)l,5(.)i" 41,003 15,417 890,235 i Includes $7,500 depreciation of bank premises. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Profit and loss account of each Federal Reserve Bank and of the system as a whole for the calendar year 1916. CO to Boston. New York. Ph p i h la ia d . el- Cleveland. Richmond. Atlanta. Chicago. St. Louis. M ap i o n l n is e . - K C a i n t s y a . s Dallas. Sa c n i s F co ra . n- Total. Earnings $450,214 $950,649 $417,939 §429,156 $311,758 $261,945 $646,983 $286,158 $238,109 $364,967 $306,875 $290,590 $4,955,343 Current expenses of bank proper 154,279 536,585 167,998 135,348 125,187 132,637 243,777 145,141 103,506 139,978 140,829 179,079 2,204,344 Net earnings for year 295,935 414,064 249,941 293,808 186,571 129,308 403,206 141,017 134,603 224,989 166,046 111,511 2,750,999 Deduct organization expenses 34,603 1123,776 31,517 55,774 97,169 32,341 2 66,776 52,358 1494,314 Net profits for year available for dividends 261,332 290,288 218,424 238,034 186,571 129,308 403,206 43,848 102,262 158,213 166,046 59,153 2,256,685 Profit and loss account Jan. 1,1916 lit 23,015 2 82,532 20,091 9,865 135,392 Total net profits available for dividends... 261,332 290,177 218,424 238,034 209,586 211,840 423,297 43,848 102,262 158,213 175,911 59,153 2,392,077 Di v inds paid 127,113 128,458 143,2137 197,922 198,840 360,649 31,100 57,720 66,707 131,920 43,736 1,487,402 Dividends accrued and paid on surrendered and canceled stock 2,804 2,879 670 2,088 8,441 Total dividends paid during year 2,S04 127,113 128,458 143,237 197,922 201,719 361,319 31,100 57,720 66,707 134,008 43,736 1,495,843 Profit and loss accountrJan. 1,1917. 258,528 163,064 89,966 94,797 11,664 10,121 61,978 12,748 44,542 91,506 41,903 15,417 896,234 Dividends declared during 1916 and approved for payment after Jan. 1, 1917 246,931 246,931 For period ending 12-31-15 Dividends paid to 3-31-15 6-30-15 6-30-15 10-31-16 6-30-16 12-31-15 3-31-15 6-30-15 6-30-15 4-30-16 3-31-15 w i Difference between figures marked and corresponding figures shown in the 1915 annual report due to slight adjustments after Jan. 1,1916. cj Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Cost of furniture and equipment, including vaults, also bank premises. Atlanta Boston. New York. d T el h p i h la ia - . . Cleveland. Richmond. (i O n N c rl l e e u w a d n in s g Chicago. St. Louis. M ap i o n l n is e . - K C a i n t s y a . s Dallas. Sa c n i s F co ra . n- Total. branch). Balance as reported Jan. 1, 1916 $9,595 S26,980 $18,491 $20,187 $9,500 $6,228 $23,000 $20,346 $54,159 $41,829 $33,255 66,422 $269,992 Additional purchases during calendar voar ending Dec. 31 1916 12,257 43,727 12,572 8,074 7,014 10,496 30,305 11,698 10,468 4,482 13,437 6,167 170,697 Total 21,852 70,707 31,063 28,261 16,514 16,724 53,305 32,044 64,627 46,311 46,692 12,589 440,689 Depreciation charged during calendar year ending Dec. 31 1916 21,852 70,707 15,653 8,097 4,514 4,442 25,000 3,355 5,353 4,350 9,528 12,5S9 185,440 Balance Jan. 1,1917 . 15,410 20,164 12,000 12,282 28,305 28,689 59,274 41,961 37,164 255,249 Bank Dremisos 121,476 102,500 i 144,246 368,222 S Cost of unissued Federal Reserve notes. Balance as reported Jan. 1, 1916 $38,633 $232,087 $43,172 $42,758 $17,36S $9,502 $60,380 $22,363 $19,933 $11,252 $9,924 $34,915 $542,287 Additional coat during calendar year ending Dec. 31, 1916' 5,738 98,752 1,136 524 10,235 22,980 12,691 8,120 6,228 36,799 13,459 14,116 230,778 3 Total.. . . 44,371 330,839 44,308 43,282 27,603 32,482 73,071 30,483 2Q, 161 48,051 23,383 49,031 773,065 Cost of Federal reser v o notes issued and charged to cur- w rent expenses during calendar year ending Dec. 31, 1916 .- 15,141 95,210 16,600 3,738 18,248 12,167 5,113 10,720 9,866 20,436 14,443 49,031 270,743 Balance, Jan. 1,1917... 29,230 235,599 27,708 39,544 9,355 20,315 67,958 19,763 16,295 27,615 8,940 502,322 1 Net amount, less depreciation of $7,500 on banking house included among current expenses. CD CO Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

94 FEDERAL RESERVE BULLETIN. FEBRUARY 1, 1917. The Federal Reserve Board voted on Janu- GOLD SETTLEMENT FUND. ary 18 to charge this amount against the assessment made upon Federal Reserve Banks EXPENSES OF FUND. for the expenses of the Board. The operation of the gold-settlement fund The expense of operation of the fund for the from May 20, 1916, when the expense was last first six months, which included organization computed, to December 31, 1916, has been at expenses, was $1,037.30. The expense of the an expense of $874.70. It has not been second six months, bringing the fund down, to necessary to make any charge in connection May 20, 1916, was $453.74! with the operation of the fund for shipments SUMMARY OF TRANSACTIONS. of currency. Amount of clearings and transfers, Federal Reserve Banks, Settlements through the gold-settlement from Dec. 22, 1916, to Jan. 25, 1917. fund began in May, 1915, and the expense of [In thousands of dollars.] its first year was computed on May 20, 1916. The present statement brings the expense of cle T a o ri t n al gs. ! Balances. Transfers. operation from May 20 to December 31, 1916, and these expenses will hereafter be carried Settlement of— Dec. 28, 1916. 8183,203 89,361 $6,100 to the end of each calendar year. During the Jan. 4,1917... 229,085 " 30,207 1,700 Jan. 11,1917 . 284,263 12,053 16,417 eight months covered in this statement, the Jan. 18, 1917.. 270,845 ; 13,111 6,990 Jan. 25,1917. 266,911 ' 11,755 1,995 items of cost have been as follows: Total 1,234,307 76,487 33,202 Previously reported. 5,290,718 472,702 153,945 Telegrams $563.17 Total since Jan. 1,1916 6.525,025 549,189 187,147 Printing, etc 6.01 Total transfers Jan. 1,1916, to date... 187,147 Additional salary to deputy settling agent 305.52 Total for 1915, including transfers 1,052,649 Total clearings and transfers, May 20, 1915, to Jan. 25,1917 .* 7,764,821 : Total 874.70 Changes in ownership of gold. [In thousands of dollars.] Total changes from To Dec. 21,1916. From Dec. 22,1916, to Jan. 25,1917, inclusive.! May 20, 1915, to Jan. 25, 1917.2 Federal Reserve Bank of— Balance to credit Dec. ! Decrease. Increase. 2 n 1 e , t 1 9 d 1 e 6 p , o p si l t u s s j ' B Ja a n la . n 2 c 5 e , | Decrease.1 Increase. Decrease..Increase. of gold since • 1917. that date. Boston 22,376 18,606 15,032 3,574 i 18,802 New York 306,574 52,426 50,897 1,529 I 308,103 Philadelphia.. 57,935 3,805 15,117 ! 11,312 * 69,'247 Cleveland 19,364 17,234 25,552 8,318 27,682 Richmond 31,981 22,251 17,965 4,286 ' 27,695 Atlanta 29,239 2,912 7,057! 22,182 Chicago 1,882 32,428 33,504 i 1,076 St. Louis 12,349 3.149 3,468 | ! 319 12,668 M Ka in ns n a e s a p C o i l t i y s. . . . . . 3 1 9 2 , , 9 0 0 6 7 2 1 18 1 , , 3 0 3 6 4 2 . 27 6 , }3 0 1 5 6 4 .5 4,746 I 8,720 48 7 , , 6 31 2 6 7 Dallas 40,271 15,283. 10,628.5 4,655 i 35,616 San Francisco. 42,972 8,802 4,904 3,898 : 39,074 Total 308,456 308,458 213,350 j 213,350 29,745 i 29,745 308,909 308,909 1 Changes in ownership of gold during period Dec. 22, 1916, to Jan. 25, ]917, equal 2.3-1 per eon-X of obligations settled. 2 Total aliases in ownership of gold equal 3.98 por cont of total obligations settfod. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FEBRUARY 1,1917. FEDERAL RESERVE BULLETIN. 95 Deposits and withdrawals by Federal Reserve Banks, and where made, Jan. 1, 1916, to Dec. 30, 1916. [OOO's omitted.] Federal Reserve Bank of— Treasury, Subtreasurv, Boston. New York. Philadelphia. Cleveland. Richmond. Atlanta. Chicago. or mint at— With- Depos- With- Depos- With- Depos- With- Depos- With- Depos- With- Depos- With- Deposdrawn. ited. drawn. ited. drawn. ited. drawn. ited. drawn. ited. drawn. ited. drawn. ited. Boston $7,500 $4,500 New York $239,665 Philadelphia 541,500 $2,500 "Washington 4,000 $2,000 3,100 $5,750 $890 $16,190 $10,140 $15,200 $560 $500 Chicago 5,000 $34,800 New Orleans 930 Total 11,500 4,500 2,000 239,000 44,600 2,500 5,750 890 16,190 10,140 15,200 1,490 5,500 34,800 Federal Reserve Bank of— Treasury, Subtreas- St. Louis. Minneapolis. Kansas City. Dallas. San Francisco. By all banks. ury, or mint at— With- Depos- With- Depos- With- Depos- With- Depos- With- Depos- With- Deposdrawn. ited. drawn. ited. drawn. ited. drawn. ited. drawn. ited. drawn. ited. Boston ! $7,500 $4,500 New York $100 $2,666 100 241,000 Philadelphia. . .. 30 41,530 2,500 Washington $3,960 S650 §13,522.5 16,667.5 370 $1,570 83,110 11,960 Chicago 5,000 34,800 St. Louis S50 • $2,730 10 10 2,780 New Orleans 50 50 930 .San iFrancisco i 30 26,480 $3,100 26,510 3,100 60 60 Total 3,960 50 i 650 13,522.5 2,730 16,947.5 2,370 28,050 3,100 163,870 301,570 Gold settlement fund—Summary of transactions from Dec. 22,1916, to Jan. 25, 1917, inclusive. [In thousands of dollars.] Changes in owner- Balance Gold. Transfers. Settlement of Dec. 28,1916. Dec. 28. ship of gold. last state- 1916, bal- Fed B er a a n li k J R o e f— serve D m o 1 c 9 e . 1 n 6 2 . t, 1, d W ra i w th n - , i ! po D si e t - ed. Debit. Credit. de N b e i t ts. d T e o b t i a ts l . | j c T re o d t i a t l s. cr N ed e i t ts. f c u a l n n e d a c r e i a n i f n t g e . r Decrease. Increase. Boston 18,606 3,869 15,649 11,780 14,737 New York 17,426 3,100 3,000 35,353 38,597 3,244 20,570 3,144 Philadelphia 15,105 5,000 2,063 26,795 24,732 8,042 2,063 •Cleveland 17,434 481 13,664 13,183 16,953 481 Richmond 20,181 1,720 130 14,479 15,304 19,416 825 Atlanta 5,939 250 5,367 6,367 1,000 1,000 Chicago 32,428 2,000 3,000 1,245 26,370 25,125 26,183 4,245 ! St. Louis 3,149 200 19,801 20,047 246 3,595 246 Minneapolis 6,562 4,214 4,716 502 7,064 502 Kansas City 18,064.5 12,480 15,651 3,171 21,235.5 3,171 'Dallas 13,573.5 1,000 5,312 5,685 373 14,946.5 373 San Francisco 10,092 1,000 ! 1 3,100 i 1,703 3,719 2,016 10,489 1,397 Total. 178,560 9,970 1,330 I 6,100 6,100 9,361 183,203 ] 183,203 I 9,361 169,920 10,658 10,658 77593—17- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

96 FEDERAL RESERVE BULLETIN. FEBRUARY 1, 1917. Gold settlement fund—Summary of transactions from Dec. 22, 1916, to Jan. 25, 1917, inclusive—Continued. [In thousands of dollars.] Balance Gold. Transfers. Settlement of Jan. 4,1917. Jan. 4, Cha s n h g ip e s o f in g o o ld w . ner- Federal Reserve la m st e s n ta t, te- 1 a 9 n 1 c 7 e , b in al- Bank of— D 1 e 9 c 1 . 6 2 . 8, d W ra i w th n - . po D si e te - d. Debit. Credit. de N b e i t ts. d T e o b t i a ts l . c T re o d t i a t l s. cr N ed e i t ts. f c u l n e d a ri a n f g te . r Decrease. Increase. Boston 14.737 15,451 19,999 4,548 19,285 4,548 New York 20.570 20,000 i6,80i 67,662 50,861 23,769 16,801 Philadelphia ... S. 042 35,432 40,262 4,830 12,872 4,830 Cleveland 16,953 17; 519 21,390 3,871 20,824 3,871 Richmond 19,416 20 2,176 15,576 13,400 17,220 2,176 Atlanta 6,689 980 750 1,788 7,193 5,405 4,671 1,788 Chicago 26,183 1,700 29,668 31,796 2,128 30,011 3,828 St. Louis 3,595 200 4,540 21,377 16,837 1,145* 4,540 Minneapolis . 7,064 1,500 j 1,700 1,533 6,761 5,228 5,331 3,233 21,235.5 1,359 15,768 14,409 35,644.5 14,409 Dallas 14,946.5 10 20 3 369 7 199 3,830 11,587.5 3 369 10,489 3,888 4. ana *42i* 10,910 '..... 42i Total 169,920 1,210 22,270 1,700 1,700 30,207 229,085 229,085 30,207 190,980 31,907 31,907 Balance Gold. Transfers. Settlement of Jan. 11,1917. B in a l f a u n n c d e Cha s n h g ip e s o f i n g o o ld w . ner- Fed B o a ra n l k R of e — serve la J m s a 1 t 9 n e s 1 . n 7 ta . 4 t t , , e- d W ra i w th n - . po D si e t - ed. 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 J l a e a 1 n a f 9 . t r 1 e i 1 7 r n . 1 g , , Decrease. Increase. Boston 19,285 221 17,840 19,042 1,202 20,708 1,423 New York 23,769 15,000 4,588 6,683 72,649 65,966 36,674 2,095 Philadelphia 12,872 5,"666" 44 40,999 46,539 5,540 13,456 5,584 Cleveland 20,824 100 35 17,215 18,896 1,681 22,440 1,716 Richmond . 17,220 160 15,000 9 17,733 18,020 287 16,176 i,204 Atlanta 4,671 970 40 i,55i 9,656 8,105 4,130 1,511 Chicago 30,011 2,000 2,000 4,709 2,866 41,911 39,045 31,854 157 St. Louis 11,145 5,730 28,171 28,745 574 5,159 6,304 Minneapolis 5,331 3 000 75 953 7,357 6,404 7,453 878 Kansas City 35,644 10,917 16,986 18,640 1,654 26,381.5 9,263 Dallas 11,587 7oo' 925* 7 539 7,945 406 13,618.5 1,331 San Francisco'. 10,910 2,000 41 M67 6,876 709 9,660 1,250 Total 190,980 5,100 21,830 16,417 16,417 12,053 284,263 284,263 12,053 207,710 16,358 16,358 Balance Gold. Transfers. Settlement of Jan. 18,1917. i B n a l f a u n n c d e Cha s n h g ip e s o f i n g o o ld w . ner- Fed B a ra n l k R of e — serve la J m s a 1 t n 9 e s . 1 n t 7 1 a t . , 1 te , - d W ra i w th n - . po D si e te - d. 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 J l a e 1 a n a 9 f . t r 1 e i 7 1 n r . 8 g , , Decrease. Increase. 20,708 3,262 19,691 16,429 17,446 3,262 New York 36,674 3,000 3,000 70,935 74,905 3,970 40,644 3,970 Philadelphia 13,456 i,"3o6" 990 3,000 43,502 47,247 3,745 17,911 5,755 Cleveland 22.440 15,218 16,605 1,387 23,827 1,3S7 Richmond 16,176 1,370 1,666 977 16,926 15,949 15,569 1,977 Atlanta I 4.i3n 2,630 3,475 10,715 7,240 3,285 3,475 Chicago 31,854 36,097 39,225 3,128 34,982 3,128 St. Louis 5.159 22,315 23,196 881 6,040 881 Minneapolis 7 4~»3 663 4,681 4,018 6,790 663 D K a a l n la sa s s City 2 13 6 , , 6 3 1 8 8 1 . . 5 5 io" 30 2 0 0 1,74 2 6 8 1 .8 5 , , 2 9 1 5 6 7 1 6 5 , , 4 9 7 2 0 9 2 1 6 1 , , 6 8 5 8 3 2 . . 5 5 1,74 2 6 8 i San Francisco 9,660 40 2,000 990 2,960 6,592 3,632 5,650 3,970 Total 207,710 1,350 4,320 6,990 6,990 13,111 270,845 270,845 13,111 210,680 15,121 15,121' 1 Overdrawn. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FEBRUARY 1, 1917. FEDERAL RESERVE BULLETIN. 97 Gold settlement fund—Summary of transactions from Dec. 22, 1916, to Jan. 25, 1917, inclusive—Continued. [In thousands of dollars.] Federal Reserve l B a m s a t l e a s n t n a t c , t e e- Gold. Transfers. Settlement of Jan. 25,1917. i B n a a l f a f te u n r n c d e Cha s n h g ip e s o f in g o o ld w . ner- Bank of— Ja 1 n 91 . 7 1 . 8, d W ra i w th n - . po D si e t - ed. Debit. Credit. de N b e it t s. d T e o b t i a ts l . c T re o d t i a t l s. cr N ed e i t ts. c J l a e 1 n a 9 . 1 r i 7 2 n . 5 g , , Decrease. Increase. Boston 17,446 100 2,514 22,039 20,125 15,032 2,414 New York 40,044 1,000 59,005 08,858 9,253 50,897 10,253 Philadelphia 17,911 895 1,899 38,083 30,784 15,117 2,794 Cleveland 23,827 i50 50 17,285 19,110 1,825 25,552 1,825 Richmond 15,509 2,150 10,910 17,162 240 17,905 240 Atlanta 3,2S5 50 900 1,283 9,037 8,354 2,912 1,283 Chicago 34,982 1,478 39,088 38,210 33,504 1,478 St. Louis. 6,040 2,572 20,381 23,809 3,408 2,572 Minneapolis 0,790 474 0,402 5,928 0,316 474 Kansas City 26,053.5 30 10,211 16,042 43i" 27,054.5 431 Dallas 11,882.5 10 1,244 8,002 0,818 10,628.5 1,244 San Francisco 5,050 250 1,100 895 291 5,402 5,111 4,904 490 Total 210,080 490 3,160 1,995 1,995 11,755 200,911 200,911 11,755 213,350 12,755 12,755 Federal reserve agents' fund—Summary of transactions, Dec. 22, 1916, to Jan. 25, 1917, inclusive. [In thousands of dollars.] Dec. 21, Week ending Dec. 28, Week ending Jan. 4, Week ending Week ending Jan. 18, Week ending Jan. 25, 1916. 1910. 1917. Jan. 11,1917: 1917. 1917. Federal reserve agent at— Bal- With- Depos- Bal- With- Depos- Bal- With- : Hal- With- Depos- Bal- With- Depos- Balance. drawn. ited. ance. drawn. ited. ance. drawn, ance. drawn. ited. ance. drawn. ited. ance. Philadelphia 11,180 11,180 11,180 ; 11,180 200 1,300 12,280 J2,280 Richmond 15,750 250 10,000 16,000 i 16.000 900 15,100 2,200 12,900 Atlanta 15,970 250 10,220 500 16,720 970 IS 750 1,400 14,350 500 13,850 Chicago 5,010 2,000 7,010 7,010 . ... 7.010 7,010 7,010 St Louis 0,710 200 0 510 6 510 0,510 ...... 0 510 0,510 Minneapolis 0,250 0,250 6,250 3,000 3,250 3,250 3,250 Kansas City.. 14,200 14.200 14,260 14.200 300 13,900 13,900 Dallas 11,930 1,000 10,930 100 10,830 700 j 10,130 10,130 10,130 San Francisco..... 14,320 14,320 14,320 ....; 14,320 200 14,120 14,120 101,380 1,200 2,500 102,080 100 500 103,080 4,070 98,410 3,000 1,300 9«,710 2,700 04,010 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

98 FEDEKAL RESERVE BULLETIN. FEBRUARY 1, 1917. Amendments to the Federal Reserve Act. tion and concentration of the gold holdings of the United States so that the flow of gold back After having given careful consideration to into Europe, or to South America or to the amendments suggested by the operation of the Orient, may be arranged without forcing any violent contraction of loans or causing undue Federal Reserve Act, the Federal Reserve Board disturbance to legitimate business. submitted in December last suggestions as to Of approximately two and three-quarter such amendments to the chairmen of the Com- billions of gold in this country there are held mittees on Banking and Currency of the House or controlled by Federal Reserve Banks about and Senate. When these amendments had $736,000,000, of which Federal Reserve Agents hold $283,000,000 as security for Federal Rebeen introduced, the Board thought it desirable serve notes outstanding, anil $453,000,000 is that some explanation should be made, and it reserve money and must therefore be used conaccordingly issued on January 14 a statement servatively. But even assuming that the Fedshowing what it desires to accomplish. This eral Reserve Banks were willing to reduce their gold reserves to 40 per cent of their deposits statement is reprinted below, and following it and note liability (which would be regarded willjbe found the text of'the amendments as as a minimum and in normal times would be introduced in Congress: inadequate) the amount of free gold—i. e., the amount of gold that the Federal Reserve After having given much attention to the Banks would lose before reaching this 40 per problem of controlling and regulating the gold cent minimum—would be a little more than supply of the United States and to the question $375,000,000. While this is a very large sum, of bank reserves in general, the Federal Reserve its sufficiency can not safely be assumed when Board has prepared and transmitted to the we consider the wide scope of our transactions chairmen of the Committees on Banking and in world finance and the phenomenal growth Currency of the Senate and House of Repreof our own credit structure. sentatives recommendations for the amendment of the Federal Reserve Act. While it is It is estimated that there are now in the not deemed desirable to give out the text of hands of the public, i. e., outside the Treasury the amendments transmitted, since they will and the banks, over $800,000,000 in gold and probably soon be introduced in Congress, the gold certificates, and that there are at present following general statement concerning them held in the vaults of member banks about is made public: $815,000,000 of reserve money of which $540,- 000,000 is gold coin or gold certificates. There When the Federal Reserve Act was drafted should be added to this estimate about $600,its principal object was to deal with national 000,000 of lawful money in the vaults of nonproblems of banking and currency. Since its member State banks and trust companies. enactment financial and economic conditions in the United States have undergone far- i reaching changes which were not foreseen three i NOTE AMENDMENT. | years ago. The United States has grown to be I The Federal Reserve note, which is an oblia world power in financial affairs and it seems | gation of the United States secured by an ample necessary that the act, which has proved of reserve of gold and commercial paper, is such great value in the treatment of our accepted as willingly by the public as a national domestic problems, should now be amended in bank note or as any other form of currency, order to enable us to deal effectively with the | and the public does not discriminate between new international problems which seem des- •; different forms of United States currency. tined to play so important a part in our ecoj Federal Reserve note circulation has been subnomic life. The banking system of the United i stituted for gold certificates to the extent of States should be prepared to meet effectively | about $300,000,000. two conditions of opposite character—one, the Under the present law this gold is deposited excessive and uncontrolled inflow of gold, the with the Federal Reserve Agents in redemption other the excessive and unregulated outflow of of the Federal Reserve notes issued against it. gold. The amendments proposed are designed The note so provided for thereby in effect ceases to provide means of controlling an overto be an obligation of the Federal Reserve extension of loans based on new accretions to Bank; but as the gold does not figure as an our gold stock and to provide for the mobilizaasset of the Federal Reserve Banks, the Federal Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FEBRUARY l, 1917. FEDERAL RESERVE BULLETIN. 99 Reserve Banks are unable to show the greater Banks. Hence the Board believes that ultistrength which might be evidenced if the law mately the law should require of member banks permitted, as proposed in the amendments, the no more than that they should maintain speciissuance of Federal Reserve notes not only jfied balances with the Federal Reserve Banks against commercial paper, but also against j in amounts adequate to supply the necessary gold or against either, provided always that j reserve basis, and that the Federal Reserve every Federal Reserve note must be covered j Banks must have sufficient reserves of gold by at least 100 per cent of commercial paper or Iwith which to protect all obligations, but that gold and that there must always be a gold j there should, however, be no legal requirement reserve of not less than 40 per cent against all jas to the amount of currency that a member outstanding Federal Reserve notes. ! bank should cany in its own vault. This is a matter of business judgment that might well RESERVES. be left to the discretion of each member bank. It was thought, however, that if this principle The control of gold by Federal Reserve Banks \ were carried into full effect at this time, the in times of abundance such as at present, will j step might be considered too extreme, particudecrease the danger of inflation of domestic larly under present conditions, and nothing credits and at the same time will enable the should be done that might tend to a further country when the tide turns to part with large release of reserve money. sums of gold with, less inconvenience or shock, A minimum amount of currency that the thus enabling us more safely and effectively to j member banks should be required to keep in proceed with the development of our foreign j their vaults is, therefore, prescribed. The trade and to give the necessary crecjit facilities [ amount suggested is 5 per cent of the demand for its extension. The United States should ! deposits, so that the total requirements—cash be in a position to face conditions which may • and reserve—will remain practically uncall for an outflow of gold without any disturb- I changed. While the effect of some of the proances of our own or to the world's business, and ; posed changes will be to reduce somewhat the without making necessary drastic changes in reserve requirements, the reserves will be inour interest or discount rates. The amendcreased by the abrogation of the practice ments suggested by the Board are designed to hitherto observed of counting items in transit enable the Federal Reserve Banks to withdraw or "float" as reserve. The permission given gold from actual circulation while enabling member banks to use their own discretion as member banks at the same time to release gold | to the character of currency in their vaults, which at present is tied up in their own vaults, j will enable them to release the gold they now The amendments are based upon the theory I hold, with the important result that the subthat all of the individual banks should j stitution of Federal Reserve notes for gold and strengthen the gold holdings of the Federal j gold certificates will be facilitated by this Reserve Banks. The co.untry;s holdings of j change in the law. Without some such change gold are not used most effectively when they member banks will continue to ask for gold are in the vaults of a large number of banks certificates in small denominations, because as scattered all over the country, but its greatest long as they must have gold or lawful money use would come from concentrating it to a to count as reserve it would be impossible for greater degree in the vaults of the Federal the banks to exchange them for Federal Re- Reserve Banks, where it can be effectively proserve notes. tected when not required and effectively used j when needed. The member bank does not j OTHER PROPOSED AMENDMENTS. require gold with which to supply the ordinary j demands of its depositors so much as currency. Besides the proposed changes relating to It is from this point of view that the Federal note issues and to reserves the Board has sug- Reserve Board has proposed that Congress in- gested also the following: crease the required reserves to be maintained j Amendment of section 11 so as to permit the by member banks with the Federal Reserve ! Federal Reserve Board to raise reserve require- Banks. On November 17, 1916, the cash ments in emergencies, just as it is now empowholdings of all member banks were about ered in certain contingencies of a different kind $815,000,000. Under the proposed amend- to lower those requirements. ment of section 19, $250,000,000 of this amount This provision would, if adopted, enable the would be transferred to the Federal Reserve Federal Reserve Board in prolonged periods of Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

100 FEDERAL RESERVE BULLETIN. FEBRUARY 1, 1917. extreme ease in the money market to check any j thus restoring to national banks, with the aptendency toward excessive loans or other forms . proval of the Federal Reserve Board, the right of undue extensions of credit. Ito accept up to 100 per cent of their capital Amendment of section 16 to permit nonmem- 'and surplus in transactions involving imports ber State banks and trust companies, even !or exports. though too small to be eligible for membership Amendment of section 17 to cancel the proin* the Federal Reserve Banks, to avail them-I vision of the national bank act which requires selves of the clearing and collection facilities of ;national banks to maintain a minimum dethe Federal Reserve Banks, provided that they j posit of Government bonds with the Treasurer cover at par checks on themselves sent for col- of the United States. National banks are no lection by the Federal Reserve Bank, and pro- ilonger required to keep outstanding a minimum vided further that they keep a compensating \ amount of circulating notes, and a newly orbalance with the Federal Reserve Bank in an iganized bank is not obliged to purchase or amount to be determined under rules prescribed carry any bonds of the United States; but by the Federal Reserve Board. This is not there are a number of national banks organized intended to operate as an extension of any of before the passage of the Federal reserve act the privileges of the Federal Reserve System to which have retired their national-bank circunonmember banks at the expense of members, lation in full, yet they are, under a construction but on the contrary the amendment is proposed of the old law, required to keep on deposit primarly for the convenience of the public and with the Treasurer of the United States a cerincidentally for the benefit of the member tain minimum of United States bonds. The banks. It is contemplated that the compen- Board feels that it is just to these banks that sating balances which nonmember banks par- they be relieved of this obligation. ticipating in the clearing plan will be required Amendment of section 25 to authorize memto keep with Federal Reserve Banks, will be ber banks located in cities of more than 100,000 sufficiently large to protect member banks and population and which have a capital and surjustify Federal Reserve Banks in undertaking plus of more than $1,000,000 to establish the service. Any clearing and collection plan branches in the same city, provided the State to be effective must be so comprehensive as to laws do not prohibit State banks and trust include all checks. At present the par lists of companies from establishing branches. the Federal Reserve Banks include the names Amendment of section 9 to authorize mutual of banks checks on which can be collected in savings banks not having capital stock to beany circumstances at a minimum of time and come associated members of the Federal Reexpense, but do not embrace a large number of serve System under certain prescribed conditowns in every State where there are no member tions. The principal beneficiaries, of this amendbanks; and in order to make collections on such ment would be the mutual savings banks of the points many banks are obliged to maintain Eastern and New England States, which, can accounts in addition to their reserve accounts not become members of the Federal Reserve with the Federal Reserve Banks. A necessary System under the present law owing to the lack factor in any successful clearing plan is the of any provision enabling them to subscribe for offset, whereby balances only require settle- capital stock of a Federal Reserve Bank, as they ment instead of the total volume of transac- have no capitalization of their own upon which tions. As long as the clearing system does not a percentage could be based. They would be embrace all of the banks this offset is lost in a required to carry a reserve balance with the corresponding degree and the value of the sys- Federal Reserve Bank against their time detem diminished in proportion. posits in the same proportion as member banks; Amendment of section 22—the penal stat- and the accommodations proposed for mutual ute—so as to define more clearly the rights and savings banks are limited strictly to the dislimitations of directors in the matter of accept- count of their 30-day obligations properly ing fees or compensation other than the ordi- secured. nary fees paid directors for legitimate services Amendment of section 18 so as to give to rendered in the regular course of business, the United States one-year 3 per cent gold notes performance of winch service is not incumbent in the hands of Federal Reserve Banks the cirupon them in their capacity as directors. culation privilege for the issuance of Federal Amendment of section 13 to restore the pro- Reserve Bank notes, such circulation to be taxed vision which was by error stricken from the at the same rate as circulating notes, which are act in the amendments of September 7, 1916, secured by 3 per cent bonds of the United Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FEBRUARY 1,1917. FEDERAL RESERVE BULLETIN. 101 States. In the opinion of the Board it is de- absence or disability of his principal/' and by sirable to extend this privilege to the Federal adding in place thereof the following: Reserve Banks in order that they may' have "Subject to the approval of the Federal additional moans of protecting themselves at Reserve Board, the Federal reserve agent shall times when there is an unusual demand for appoint one or more assistants. Such assistcurrency. ants, who shall be persons of tested banking ex- Amendment of section 4 to abolish the title perience, shall assist the Federal reserve agent and office of Deputy Federal Reserve Agent, in the performance of his duties and shall also thus having two unattached class C directors have power to act in his name and stead during instead of one as at present, and to create the his absence or disability. The Federal reserve position of Assistant Federal Reserve Agent, agent may require such bonds of his assistants as who shall not be a director of the bank, but who he may deem necessary for his own protection. shall be a salaried bonded officer in the Federal Assistants to the Federal reserve agent shall Reserve Agent's department, serving at all receive an annual compensation to be fixed times as an assistant to the Federal Reserve and paid in the same manner as that of the Agent and qualified to act for the agent in his Federal reserve agent." absence. Experience has shown that there is SEC. 2. That section nine be amended by difficulty in filling the office of Deputy Federal adding a subsection (a) to read as follows: Reserve Agent. This officer is required to have "SEC. 9a. That any mutual savings bank or the same qualifications as the Federal Reserve association operating under the laws of any Agent; he must have had banking experience State may make application to the Federal and he must not be an officer, director, or Reserve Board for the right to become an assostockholder in any bank. At the same time ciate member of the Federal reserve bank of the he is not as a rule a salaried officer, and re- district in which such savings batik or associaceives only the customary fees paid directors tion is located. for attendance upon meetings, and he is "The Federal Reserve Board, under such obliged to be prepared to assume the duties of rules and regulations as it may prescribe, may the Federal Reserve Agent in case of the ab- permit such bank or association to become an sence or disability of that officer, wind1 in- associate member of the Federal reserve bank, volves a transfer and audit of securities and but such board, before granting any applicaaccounts. It is believed that the change sug- tion, shall require satisfactory evidence that the gested will operate to fix responsibility more laws of the State in which the applying bank or definitely and will give the Board more latitude association is located authorize such bank or in the selection of the class C directors other association to engage in the business of a muthan the Federal Reserve Agent. tual savings bank and provide for a proper supervision over the operations of such bank or TEXT OF AMENDMENTS. association. A BILL To amend the Act approved December twenty- "Any mutual savings bank or association third, nineteen hundred and thirteen, known as the which becomes an associate member of a Fed- Federal reserve Act, as amended by the Acts of Augnst eral reserve bank shall agree to comply with all fourth, nineteen hundred and fourteen, August fifteen, nineteen hundred and fourteen, March third, nineteen the provisions of section nineteen of this Act. hundred and fifteen, and September seven, nineteen Such associate members shall be entitled to all hundred and sixteen. the clearing privileges granted to member Be it enacted by the Senate and House of banks, and Federal reserve banks shall be Representatives of the United States of America authorized to discount the promissory notes of in Congress assembled, That section four of thesuch associate members having a maturity of Act approved December twenty-third, nineteen not more than thirty days and which are hundred and thirteen, known as the Federal secured (a) by paper eligible for rediscount reserve Act, be amended by striking out the under section thirteen of the Federal reserve sentence reading as follows: "One of the di- Act; (b) by United States bonds; (c) by such rectors of Class C, who shall be a person of municipal warrants as Federal reserve banks tested banking experience, shall be appointed are authorized to purchase under the provisions by the Federal Reserve Board as deputy chair- of section fourteen of the Federal reserve Act; man and deputy Federal reserve agent, to or (d) by commercial paper or bankers7 acceptexercise the powers of the chairman of the ances bearing the signature of not less than board and Federal reserve agent in case of three persons, firms, or corporations." 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102 FEDEBAL EESERVE BULLETIN. FEBRUARY 1,1917, SEC. 3. That clause (c) of section eleven be, tached at the time of acceptance; or which are and is hereby amended by adding at the end secured at the time of acceptance by a warethereof the following sentence: house receipt or other such document convey- "The Federal Reserve Board shall also have ing or securing title covering readily market, power, Ayhenever extraordinary conditions jus- able staples. No member bank shall accept, tify, to increase from time to time for periods whether in a foreign or domestic transactionnot exceeding thirty days, on the affirmative for any one person, company, firm, or corporavote of five of its members, the amount of tion to an amount equal at any time in the balances required by this Act to be maintained aggregate to more than ten per centum of its by member banks with their respective Federal paid-up and unimpaired capital stock and surreserve banks: Provided, Such increase shall plus, unless the bank is secured either by atat no time exceed twenty per centum of such tached documents or by some other actual sebalances and shall be at the same rate for all curity growing out of the same]-transaction as member banks of any one district: And pro- the acceptance; and no bank shall accept such vided further, That the Federal Reserve Board bills to an amount equal at any time in the agshall make a report to Congress in writing gregate to more than one-half of its paid-up and setting forth the conditions on which such unimpaired capital stock and surplus: Provided, action is based.7' however, That thegFederal Reserve Board, under SEC. 4. That the first paragraph of section such general regulations as it may prescribe, which thirteen be further amended so as to read as shall apply to all banks alike regardless of the follows: amount of capital stock and surplus, may author- "Any Federal reserve bank may receive ize any member bank to accept such bills to an from any of its member banks, and*from the amount not exceeding at any time in the aggregate United States, deposits of current funds in one hundred per centum of its paid-up and unim,lawful money, national-bank notes, Federal paired capital stock and surplus: Provided, howreserve notes, or checks, and drafts, payable ever, Tliat the aggregate of acceptances growing out upon presentation, and also, for collection, of domestic transactions shall in no event exceed maturing notes and bills; or, solely for purposes fifty per centum of such capital stock and surplus" of exchange or of collection, may receive from SEC. 6. That section sixteen, paragraphs other Federal reserve banks deposits of current two, three, four, five, six, and seven, be funds in lawful money, national-bank notes, further amended and reenacted so as to read or checks upon other Federal reserve banks, as follows: and checks and drafts, payable upon presenta- "Any Federal reserve bank may make applition within its district, and maturing notes and cation to the local Federal reserve agent for bills payable within its district; or, solely for the such amount of the Federal reserve notes purposes of exchange or of collection, may receivehereinbefore provided for as it may require. from any nonmember hank or trust company Such application shall be accompanied with a deposits of current funds in lawful money, tender to the local Federal reserve agent of national-bank notes, Federal reserve notes, checkscollateral in amount equal to the sum of the and drafts payable upon presentation, or maturing Federal reserve notes thus applied for and notes and bills: Provided, Such nonmember bank issued pursuant to such application. The or trust company maintains with the Federal collateral security thus offered shall be notes, reserve bank of its district a balance i% an amoundtrafts, bills of exchange, or acceptances redisto be determined by the Federal Reserve Board counted under the provisions of section thirteen under such rules and regulations as it may of this Act, or bills of exchange indorsed by prescribe" a member bank of any Federal reserve district SEC. 5. That the fifth paragraph of section and purchased under the provisions of section thirteen be, and is hereby, further amended so as fourteen of this Act, or bankers' acceptances to read as follows: purchased under the provisions of said section "Any member bank may accept drafts or bills fourteen, or gold or gold certificates; but in no of exchange drawn upon it having not more event shall such collateral security, whether gold, than six months sight to run, exclusive of days gold certificates, or eligible paper, be less than of grace, which grow out of transactions involv- the amount of Federal reserve notes applied for. ing the importation or exportation of goods; or The Federal reserve agent shall each day which grow out of transactions involving the notify the Federal Reserve Board of all issues domestic shipment of goods provided shipping and withdrawals of Federal reserve notes to documents conveying or securing title are at- and by the Federal reserve bank to which he Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FEBRUARY 1,1917. FSDEEAL EESBBVE BULLETIN". 103 is accredited. The said Federal Reserve Board issued, or they may be returned to such bank may at any time call upon a Federal reserve for the credit of the United States. Federal bank for additional security to protect the reserve notes unfit for circulation shall be Federal reserve notes issued to it. returned by the Federal reserve agents to the "Every Federal reserve bank shall maintain Comptroller of the Currency for cancellation reserves in gold or lawful money of not less than and destruction. thirty-five per centum against its deposits and "The Federal Reserve Board shall require reserves in gold of not less than forty per cen- each Federal reserve bank to maintain on tum against its Federal reserve notes in actual deposit in the Treasury of the United States circulation: Provided, however, That when the a sum in gold sufficient in the judgment of the Federal reserve agent holds gold or gold certificates Secretary of the Treasury for the redemption as collateral for Federal reserve notes issued to of the Federal reserve notes issued to such the lank such gold or gold certificates shall he bank, but in no event less than five per centum counted as part of the gold reserve which such of the total amount of notes issued less the amount bank is required to maintain against its Federal of gold or gold certificates held by the Federal reserve notes in actual circulation aad-not-efeet reserve agent as collateral security; but such •lawful-monteey¥- deposited with the deposit of gold shall be counted and included Federal roacr¥e-agea&. NN<otes so paid out shall as part of the forty per centum reserve herebear upon their faces a distinctive letter and inbefore required. The board shall have the serial number, which shall be assigned by the right, acting through the Federal reserve Federal Reserve Board to each Federal reserve agent, to grant, in whole or in part, or to bank. Whenever Federal reserve notes issued reject entirely the application of any Federal rethrough one Federal reserve bank shall be serve bank for Federal reserve notes; but to the received by another Federal reserve bank they extent that such application may be granted shall be promptly returned for credit or re- the Federal Reserve Board shall, through its demption to the Federal reserve bank through local Federal reserve agent, supply Federal which they were originally issued or, upon di- reserve notes to the bank so applying, and rection of such Federal reserve banlc, they shall such bank shall be charged with the amount of he forwarded direct to the Treasurer of the United s^efe notes issued to it and shall pay such rate of States to he retired. No Federal reserve bank interest oft-sa^-amoun^ as may be established y shall pay out notes issued through another by the Federal Reserve Boardd andd tthho fc under penalty of a tax of ten per centum upon ef auch on only that amount of such notes which the face value of notes so paid out. Notes preequals the total amount of its outstanding Federal sented for redemption at the Treasury of the reserve notes less the amount of gold or gold United States shall be paid out of the redempcertificates held by the Federal reserve agent as tion fund and returned to the Federal reserve collateral security. Federal reserve notes so banks through which they were originally issued to any such bank shall, upon delivery, issued, and thereupon such Federal reserve together with such notes of such Federal bank shall, upon demand of the Secretary of reserve bank as may be issued under section the Treasury, reimburse such redemption fund eighteen of this Act upon security of United in lawful money or, if such Federal reserve States two per centum Government bonds,, notes have been redeemed by the Treasurer in become a first and paramount lien on all the gold or gold certificates, then such funds shall assets of such bank. be reimbursed to the extent deemed necessary ajr4ime i by the Secretary of the Treasury in gold or its liability for Federal gold certificates, and such Federal reserve roaorvo -no^oa by y banks shall, so long as any of its Federal reserve reserve notes remain outstanding, maintain with the money Treasurer in gold an amount sufficient in the so d judgment of the Secretary to provide for all redemptions to be made by the Treasurer. Federal reserve notes received by the Treasurer otherwise than for redemption may be exchanged for gold^out of the redemption fund hereinafter provided and returned to the reserve bank through which they were originally U pon 77593—17- 5 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

104 FEDERAL BESEBVE BULLETIN. FEBRUARY 1,1917. the request of the Secretary of the Treasury j SEC. 8. That paragraph five of section the Federal Reserve Board shall require the Ieighteen be, and is hereby, amended so as to Federal reserve agent to transmit so nraefe-ef read as follows: ?' fee-paid gold to the Treasurer of the United "Upon the deposit with the Treasurer of the States so much of the gold held by him as collateraUl nited States of bonds so purchased, or any security for Federal reserve notes as may be jbonds with the circulating privilege acquired required for the exclusive purpose of the Iunder section four of this Act, or any three per redemption of such eetes Federal reserve notes,centum one-year gold notes issued in accordance but such gold when deposited with the Treasurer with the provisions of this section, any Federal shall be counted and considered as if collateral reserve bank making such deposit in the mansecurity on deposit with the Federal reserve ner provided by existing law for the deposit by agent. national banks oi bonds bearing the circulating "Any Federal reserve bank may at its dis- | privilege, shall be entitled to receive from the cretion withdraw collateral deposited with the j Comptroller of the Currency circulating notes local Federal reserve agent for the protection •in blank, registered and countersigned as proof its Federal reserve notes dpei£dwi4fei£ ! vided by law, equal in amount to the par value issued to it and shall at the same time substi- | of the notes or bonds so deposited. Such cirtute therefor other like collateral of equal jculating notes shall be obligations of the Federal amount with the approval of the Federal!reserve bank procuring the same, and shall be reserve agent under regulations to be pre- jin form prescribed by the Secretary of the scribed by the Federal Reserve Board. Any j Treasury, and to the same tenor and effect as Federal reserve bank may retire any of its \national bank notes now provided by law. Federal reserve notes by depositing them vjith the Tjhey shall be issued and redeemed under the Federal reserve agent or with the Treasurer of same terms and conditions as national bank the United States, and such Federal reserve bankn Iotes, except that they shall not be limited to shall thereupon be entitled to receive back the jthe amount of the capital stock of the Federal collateral deposited with the Federal reserve reserve bank issuing them. Circulating notes agent for the security of such notes. Federal of Federal reserve banks secured by three per reserve banks shall not be required to maintain centum one-year gold notes shall be subject to the the reserve or the redemption fund heretofore pro-same tax imposed by law on circulating notes vided for against Federal reserve notes which which are secured by three per centum bonds of have been retired; nor shall they be further liablethe United States." to pay any interest charge vjhich may have been SEC. 9. That section ninete'en be further imposed thereon by the Federal Reserve Board. |amended and reenacted so as to read as Federal reserve notes so deposited shall not be jfollows: reissued except upon compliance with the con- " SEC. 19. Demand deposits within the meanditions of an original issue" ing of this Act shall comprise all deposits pay- SEC. 7. That section seventeen be, and is able within thirty days, and time deposits shall hereby, amended so as to read as follows: comprise all deposits payable after thirty days, "SEC. 17. So much oi the provisions of sec- ftBtd all savings accounts and certificates of tion fifty-one hundred and. fifty-nine of the ddepito sit whhihic h are sbubjtj ectt to tn olt lessh than Revised Statutes of the United States and sec- thirty days' notice before payment, and all tion four of the Act of June twentieth, eighteen postal savings deposits. hundred and seventy-four, and section eight of —When the Secrctray d-4hc Treasury shall the Act of July twelfth, eighteen hundred and have officially aa&e&aeed, in .Quch manner as eighty-two, and of any other provisions of ex- ho ma^risting statutes as require that before any national banking associations shall be author- Imomfeer Every bank, banking association, or ized to commence banking business it shall j trust company which is or which becomes a transfer and deliver to the Treasurer of the jmember of any Federal reserve bank shall estab- United States a stated amount of United States jlish and maintain reserve balances with its Fedregistered bonds, and so much of those provi- Ieral reserve bank reserves as follows: sions or of any other provisions of existing " (a) If a-baafe not in a reserve or central restatutes as require any national banking associa- serve city, as now or hereafter defined, it shall tions now or hereafter organized to maintain a hold and maintain with the Federal reserve bank minimum deposit of such bonds with the Treas- of its district an actual net balance reserves equal urer is hereby repealed." to not less than twelve seven per centum of the Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FEBRUARY 1,1917. FEDERAL RESERVE BULLETIN. 105 aggregate amount of its demand deposits and ! than thirteen per centum of the aggretliree per centum of its time depositsy—as • gate amount of its demand deposits and five fellews-:. * i three per centum of its time deposits-as-fellews-:. p for a—eegied of tk-igty-sijg i -^fcMtiM^a^ItsH^^ £fete baafe -geeseg^pe of ^ one " Every member bank shall maintain in its •wkiek-sh&ll, own vaults an amount of specie or currency equal ' to at least fi.ve per centum of its demand, deposits less the amount of those balances with the Federal said-date reserve bank which are in excess of the minimum balances required by this section. in hi } ^ p7 ex-keg—tha**—^kese---feeFei-H:bei:er-e--re ^^ " (b) If Qrb&Bk in a reserve city, as now or hereafter defined, it shall hold and maintain with the Federal reserve bank of its district an actual net balance goaorves equal to not less than fifteen ten per centum of the aggregate amount of its demand deposits and frre three per centum of its time depositsy-as-feHews-r. ''II n i tl f for a poigdied—ef—thirty sist s after thorcoiV five No member bank shall keep -tfee-date ! on deposit with an}" nonmenber bank a sum in 5T-aB:4-fe-r-eaek i excess of ten percentum of its own paid-up six aa -eae capital and surplus. No member bank shall act as the medium or agent of a nonmember be bank in applying for or receiving discounts from a Federal reserve bank under the proa pcried of tkirt}^ visions of this Act, except by pemiission of the 4ate-4ke-balaaee of tk Federal Reserve Board. -ewft-^=ault9, or m the Federal reserve "The ?eseFre required balance carried by a in in resegye-eg-eea- member bank with a Federal reserve bank may, under the regulations and subject to such pensaid thirty six m alties asjiiay be prescribed by the Federal sa-id exeept—-4feese—hege»befege—ge Reserve Board, be checked against and withdrawn by such member bank for the purpose of meeting existing liabilities: Provided, howt^ of the Federal ever, That no bank shall at any time make new loans or shall pay any dividends unless and or bankr until the total gese-Fre balance required by law " (c) If a-baak in a central reserve city, as is fully restored. now or hereafter defined it shall hold a,nd main- "In estimating the reserves balances and tain with the Federal reserve bank of its d/isirict the cash in vault required by this Act, the net an actual net balance gesegve equal to not less difference of amounts due to find from Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

106 FEDERAL RESERVE BULLETIN. ,1917. other banks shall be taken as the basis for chase or sale of such securities or other investascertaining the deposits against which fe- ments must be by an affirmative vote or written sorvos required balances with Federal reserve assent of at least three-fourths of the members of banks and cash in vault shall be deter- the board exclusive of the director interested and mined. Bftiaaooa in reserve basks due te must be recorded in the minutes of the meeting member baaks shall to the extcnt-horcin of said board, such minutes to specify the name vidod-bo counted aa reserves-. of the director and the firm or corporation with ''National banks, or banks organized under which he is connected, if any, through which local laws, located in Alaska or in a dependency such order is to be executed, together with the or insular possession or any part of^ the United amount of the fee or commission to be paid on States outside the continental United States each transaction: And provided further, That may remain nonmember banks, and shall in notes, drafts, bills of exchange, or other evidences that event maintain reserves and comply with of debt executed or indorsed by directors or attorall the conditions now provided by law regu- neys of a member bank may be discounted with lating them; or said banks cxccp^-m-^he-Phili- such member bank on the same terms and condipine Iala&eb may, with the consent of the tions as other notes, drafts, bills of exchange, or Reserve Board, become member banks of any evidences of debt upon the affirmative vote or one of the reserve districts, and shall in that written assent of at least three-fourths of the event take stock, maintain reserves, and be sub- members of the board of directors of such member ject to all the other provisions of this Act." bank. SEC. 10. That that part of section twenty- SEC. 11. That section twenty-five be two which reads as follows: "Other than the amended by adding a subsection (a) to read usual salary or director's fee paid to any officer, as follows: director, or employee of a member bank and ''SEC. 25a. That any member bank located other than a reasonable fee paid by said bank in a city or incorporated town of more than to such officer, director, or employee for ser- one hundred thousand inhabitants and posservices rendered such bank, no officer, direc- sessing a capital and surplus of §1,000,000 or tor, employee, or attorney of a member bank more may, under such rules and regulations shall be a beneficiary of or receive, directly or as the Federal Reserve Board may prescribe, indirectly, any fee, commission, gift, or other establish branches, not to exceed ten in number, consideration for or in connection with any within the corporate limits of the cit}~ or town transaction or business of the bank," be, and in which it is located: Provided, That no such hereby is, amended and reenacted so as to read branch shall be established in any State in as follows: which neither State banks nor trust companies "Other than the usual salary or director's may lawfully establish branches.7' fee paid to any officer, director, O3? employee, or attorney of a member bank, and other than a reasonable fee paid by said bank to such Press Statement. officer, director, or- employee, or attorney for services rendered to such bank, no officer, The Federal Reserve Board to-day made director, employee, or attorney of a member public the text of a memorandum transmitted bank shall be a beneficiaiy of or receive, to it by Mi*. James B. Forgan, president of the directly or indirectly, any fee, commission, gift, or other consideration for or in connection | Federal Advisory Council, expressing the views with any transaction or business of the bank:| of that body with reference to the proposed Provided, however, TJiat nothing in this Act amendments to the Federal reserve act recontained shall be construed to prohibit a director, cently submitted to the Banking and Currency officer, employee or attorney from receiving the Committees of the two Houses of Congress by same rate of interest paid to other depositors for similar deposits made with such bank, or to pro- the Federal Reserve Board. hibit an attorney or director who is not an officer It will be noted that the council unanimously or employee from receiving, directly or indi- approved the proposed note-issue amendment rectly, the usual and customary commissions or which has been stricken out by the House fees for services rendered in buying and selling Committee on Banking and Currency and that securities or other investments for or on account ; of such bank; but 'in- this latter case the action| the council has suggested a modification of the of the board of directors in directing each -pur- | proposed reserves to be carried by member Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FEBRUARY 1,1917. FEDEEAL KESEEVE BULLETIN. 107 banks with the Federal Reserve Banks. In standpoint, however, of a practical working view of the fact, however, that the House basis the council doubts if so much as is procommittee struck out all requirements for j posed of the member banks' available cash vault cash, the Board believes that the sug- | should be arbitrarily tied up in the form of gested reserves of 7, 10, and 13 per cent, re-! compulsory balances with the Federal Reserve spectively, for country banks, reserve city I Banks. banks, and central reserve city banks should The council at its meeting of September 19 be retained. last, drew the Board's attention to the fact that The advisory council's memorandum, dated ! until the State banks join the system and daily January 25, is as follows: j clearing-house balances can be settled by checks on the Federal Reserve Banks the member RECOMMENDATIONS BY THE FEDERAL ADVISORY I banks, especially in the large cities, must keep COUNCIL IN REGARD TO THE AMENDMENTS TO THE FEDERAL RESERVE ACT PROPOSED BY| a sufficient supply of gold or lawful money on THE FEDERAL RESERVE BOARD, JANUARY, 1917.hand for the settlement of such balances as well as for their counter use. Besides this it would No. 1. Amendment to section 16, which be a conservative policy for the member banks provides— to keep in their own vaults a reasonable amount (a) For the issue of Federal Reserve notes of gold or lawful money proportionate to their directly against the deposit of 100 per cent gold, or .100 per cent of paper, or both; demand deposits. Banks located in Federal (b) For the counting of gold held by the reserve cities now receive from the Federal Re- Federal Reserve agents as security for notes serve Banks late in the afternoon checks on as part of the gold reserve required to be held themselves in large volume and amount which by the bank against such Federal Reserve have accumulated during the day and have notes— been charged against their legal reserve balmeets with the approval of the Federal Ad- J ances in such large volume and amount as to visory Council. hamper them in maintaining their legal reserve No. 2. In re amendment of section 19, abbalances. In our opinion 5 per cent cash on breviating and simplifying the clauses in sechand would not be sufficient for these purposes, tion 19 which relate to reserve requirements. This provides that all member banks shall and from a practical standpoint it would facilimaintain reserves in the Federal Reserve Bank, tate the operations of the member banks if the as follows: minimum compulsory balances to be kept by them with the Federal Reserve Banks against Against- i Against I demmid : time de- their demand deposits were at least reduced :loposiis.'. posits. | 1 per cent in each class and the percentage of Per call. ! Per c'.-n ! the till money correspondingly increased in the (a) Country ba-iks (/)) "Reserve city lianas j case of the reserve city and central reserve city (c) Centra] reserve oily banks banks, the increase in till money in the case of And in addition every member bank is re- the country banks being unnecessary. The quired to keep in its own vault for till money council's recommendation is therefore as folan amount of specie or currency (not necessalows: rily gold or lawful money) equal to 5 per cent of its demand deposits, less the amount of net balance with Federal Reserve Banks in excess Deposit's Deposits in Fed- io Fedof the minimum above stipulated. eral eral lieservo Reserve Till This amendment is in harmony with one of Hanks Banks money. against against the basic principles of the Federal Reserve Act (lorn a rid time deposits. deposits. to the effect that the bulk of the gold held as Per crnf. Per cent. Per cent. reserves for bank deposits should be mobilized Country banks 0 "Reserve city "ban '•<$ 9 3 f -n the Federal Reserve Banks. From the Centra] reserve city 12 3 i h Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

108 FEDEBAL BESEBVE BULLETIN. FEBRUARY 1,1917. No. 3. Amendment of section 11, so as to The council would recommend that the propermit the Federal Reserve Board to raise posed addition to section 22 commencing with reserve requirements in emergencies, just as it uProvided, hovjever, That nothing in this act is now empowered in certain contingencies of a contained7' should, be amended as follows: different kind to lower those requirements. Provided, hovjever, That nothing in this act The council is of opinion that it would be | contained shall be construed to prohibit a direcundesirable and unnecessary to grant such tor, officer, or employee from receiving the power to the Federal Reserve Board. The same rate of interest paid to other depositors for Board would only take action under such power similar deposits made with such bank, or to when member banks are overburdened with prohibit a director, who is not an officer or employee from receiving, directly or indirectly, the surplus cash reserves and its action then could usual and customary commissions or fees for only apply to member banks. The effect services rendered in buying and selling securiwould therefore be that member banks would ties or other investments for or on account of be compelled to increase their noninterest- such bank, bearing balances with the Federal Reserve 7 fe^ Banks while nonmember hanks would have the of ffbteferseerei4ao3o r ttsfe—be—fey free use of their funds. It would place another stumbling block in the way of State banks joining the system. -Aftd but each such transaction must j be recorded in the minutes of the meeting of No. 4. Amendment of section 13, to permit said Board, such minutes to specify the name nonmember State banks and trust companies, of the director and the firm or corporation with even though too small to be eligible for memj which he is connected, if any, through which bership in the Federal Reserve Banks,' to avail I such order is £e-fee executed together with the themselves of the clearing and collection facili- | amount of the fee or commission £e-fee paid on ties of the Federal Reserve Banks, provided I each transaction: And provided further, That that they cover at par checks on themselves I notes, drafts, bills of exchange, or other evisent for collection by the Federal Reserve dences of debt executed or indorsed by directors Bank and provided further that they keep of a member bank may be discounted with such a compensating balance with the Federal Remember bank on the same terms and conditions serve Bank in an amount to be determined as other notes, drafts, bills of exchange, or under rules prescribed by the Federal Reserve evidences of debt Board. This might work to the mutual advantage gs—e£--4ke—keafd of- dreeetora of suek bk of the member banks in connection with the check-collection system and of nonmember The council makes this recommendation banks willing to conform to the rules prescribed because, in its judgment, an affirmative vote or by the Federal Reserve Board as well as to that written assent of at least three-fourths of the of the Federal Reserve Banks through the members of the Board is an unnecessary restriccompensating balances. The experiment might tion in connection with such services by a direcbe worth trying. tor as the buying and selling of securities and inasmuch as notes, drafts, bills of exchange, or No. 5. Amendment of section 22—the penal statute—so as to define more clearly the rights other evidences of debt executed or indorsed by and limitations of directors in the matter of bank directors are as a rule the very best of accepting fees or compensation other than the their class, the placing of special restrictions on ordinary fees paid directors for legitimate servthe discounting of such instruments for direcices rendered in the regular course of business, tors would only unnecessarily and unwarrantthe performance of which services is r.ot incumbent upon them in their capacity as ably impede legitimate business or force it into directors. other banks. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FEBRUARY 1,1917. FEDERAL RESERVE BULLETIN. 109 No. 6. Amendment of section 13 to restore privilege for the issuance of Federal Reserve the provision which was by error stricken from bank notes that the law providing for the exthe act in the amendments of September 7, change- of 2 per cent gold bonds bearing the 1016, thus restoring to national banks, with the circulation privilege, but against which no cirapproval of the Federal Reserve Board, the right to accept up to 100 per cent of their capital culation is outstanding, for one-year gold notes and surplus in transactions involving imports to an amount not exceeding one-half of the and exports. 2 per cent bonds so tendered for exchange, be so amended as to do away with the one-year The council approves this amendment. | gold notes entirely and provide that the 2 per No. 7, Amendment of section 17, to cancel cent gold bonds may bo exchanged for an equal the provision of The National Bank Act which amount of thirty-3Tear 3 per cent gold bonds requires national banks to maintain a minimum deposit of Government bonds with the Treas- without the circulation privilege. urer of the United States. No. 11. Amendment of section 4, to abolish the title and office of Deputy Federal Reserve The council approves this amendment. Agent, thus having two unattached class C No. S. Amendment of section 25 to authorize! directors instead of one as at present, and to member banks located in cities of more than ! create the position of Assistant Federal Re- 100.000 population and which have a capital ' serve Agent, who shall not be a director of the and surplus of more than $1,000,000 to estab- • bank, but who shall be a salaried bonded lish branches in the same city, provided the I officer in the Federal Reserve Agent's depart- State laws do not prohibit State banks and ment serving at all times as an assistant to trust companies from establishing branches. the Federal Reserve Agent and qualified to act for the agent in his absence. The council has already advised the Board As member banks and others doing business that it approves the authorization of member with the Federal Reserve Agent and his assistbanks located in cities of more than 100,000 ant would not necessarily be charged with population and which have a capital and. surknowledge of the absence or disability of the plus of more than SI,000,000 to establish Federal Reserve Agent, the restricted power of branches in the same citj but disapproves the y his assistant to act in his name and stead only granting of such a privilege to the banks in during his absence or disability should for their some States while it is withheld from banks in protection be removed by striking out the other States irrespective of State laws affecting words " during his absence or disability" oc- State banks and trust companies in regard to curring in the last paragraph of the proposed the establishment of branches by them. amendment. If the assistant should act in No. 9. Amendment of section 9, to authorize any matter of importance during the presence mutual savings banks not having a capital or disability of the agent to act for himself his stock to become associate members of the Federal Reserve System under certain pre- action would be null and void. Otherwise the scribed cond itions. council sees no objection to the amendment. The council approves this amendment. JANUARY 29, 1917. No. 10. Amendment of section 18, so as to give to United States one-year 3 per cent gold Amendment as to Reserve Provisions. notes in the hands of Federal Reserve Banks the circulation privilege for the issuance of The following computation, prepared for the Federal Reserve bank notes. House Banking and Currency Committee, The council would recommend that instead serves to illustrate the effect of the amendof amending section 18 so as to give United ment to section 19 of the Act, proposed by the States one-year 3 per cent gold notes in the Board, upon the deposits with Federal Reserve hands of Federal Reserve Banks the circulation Banks by showing comparatively the amount Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

110 FEDERAL BESERVE BULLETIN. FEBRUARY 1,1917. of the deposits which member banks are now Subtreasuries and-Federal Reserve Banks. required to maintain with the Federal Reserve There is herewith reprinted the letter of the Banks, namely, $547,707,000. and the amount Secretary of the Treasury, dated December they would be required to maintain were the 16, 1916, transmitting a report relative to the amendment enacted, or $901,910,000. The United States subtreasuries and their relation total amount of reserve required, which is now to the Federal Reserve Banks to the Speaker $1,369,315,000, would be slightly reduced, to of the House of Representatives, as follows: $1,332,986,000, the principal part of the reduction being in the requirements for country SIR: In the legislative, executive, and judicia banks. The figures used are those given in the appropriation act approved May 10, 1916, it is provided that— Comptroller of the Currency's summary of re- "The Secretary of the Treasury is authorized ports for national banks at close of business and directed to report to Congress at the be- November 17, 1916, and the formula for com- ginning of its next session which of the subputing reserves prescribed by the comptroller treasuries, if any, should be continued after the has been used, with the exception that the end of the fiscal year 1917, and if, in his opinion, any should be continued, the reasons in full requirements are computed as they will be for such continuance; also if any or all of said after balances with correspondents shall have subtreasuries may be discontinued what legisceased to count as legal reserve. lation will be necessary in order to transfer their duties and functions to some other branch [Tn thousands of dollars.! of the public service or to the Federal Reserve Banks/7 | Central In accordance with the above authorization reserve ^ ^j Country As of Nov. 17,1916. city Total. and direction, I have the honor to report as banks. follows: There are nine subtreasuries located, re- Due to banks. . - .... 1,553,234 4,935 i 4.IRQ spectively, in the cities of Boston, Mass.; New 1,358,274 428,120 York City, N. Y.; Philadelphia, Pa.; Balti- 1,363,209 432,309 Less—due from banks 285,619 788,380 944,767 more, Md.; Cincinnati, Ohio; Chicago, 111.; St. Louis, Mo.; New Orleans, La.; and San Fran- Total .. 1,267,615 574,829 Dividends unpaid 105 284 1,001 cisco, Cal. The subtreasury system was au- Demand deposits 1,960,610 2,015,082 3,346,996 thorized by the act of August 6, 1846, and sub- Total 3,228,330 2,590,195 13,347,997 sequent acts amendatory thereof. Deductions allowed: ! The duties and functions of the subtreasuries Checks on other banks in same place 8,287 7,600 | 32,405 may be stated generally as follows: Exchanges for clearing Issue of gold order certificates on gold house 392,921 106,511 i 17,273 deposits. Total 401,208 114,111 29,678 Acceptance of gold coins for exchange. Net demand deposits 2.827,122 2,476,084 3,318,319 Acceptance of standard silver dollars for Time deposits 76; 272 287,922 1,452,252 Reserve required to be in exchange. Federal Reservfe Bank: 13-10-7% on demand de- Acceptance of fractional silver for redempposits 367,526 247,608 232,282 847,416 tion. 3% on time deposits 2,288 . 8,638 43,568 54,494 Acceptance of minor coins for redemption. 369,814 256,246 275,850 901,910 Acceptance of United States notes for re- On present basis: demption. 7-C-5% on demand deposits • 197,898 148,505 165,916 512,379 Acceptance of Treasury notes for redemp- Approximately 2% on time deposits 1,525 5,758 28,045 35,328 tion. Acceptance offgold and silver certificates for 199,423 154,323 193,961 547,707 redemption. Total reserve required, new basis (18-15-12%, 3% on Cancellation (before shipment to Washingtime deposits) 511,170 380,050 441,766 1,332,986 ton) of unfit currency. Total reserve required, present basis (18-15-12%, 5% on Laundering of unfit currency which permits time deposits) 512,696 385,809 470,810 1,369,315 of this process. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FEBRUARY 1,19.1.7. FEDERAL BESBBVE BULLETIN. Ill Exchange of various kinds of money for Reserve Banks, the reserve and trust funds of other kinds that may be requested. the Government, viz, gold coin and bullion Remittances from United States depositary and silver dollars held in trust by the Governbanks of their surplus deposits of internal- ment against outstanding gold and silver cerrevenue, customs, money-order, postal, and tificates and greenbacks, are not included in similar funds. this authorization. The gold coin and bullion Deposits of postal savings funds direct. hold against gold certificates, amounting at Deposits of money-order funds direct and present' to more than $2,000,000,000, a "conindirect. siderable part of which is deposited in the sub- Deposits of post-offi.ce funds direct and treasuries, should not, in my opinion, be comindirect. mitted to the custody of any private corpora- Deposits on account of 5 per cent redemption tions (and the Federal Reserve Banks are fund. private corporations), but should be in the Deposits of interest on public deposits. physical control of the Government itself. This Deposits of funds belonging to disbursing applies with equal force to the $152,979,025 of officers. gold reserve held against United States notes Funds deposited for transfer to some other and Treasury notes of 1890 and the silver dolpoint through a payment by a subtreasury lars held against silver certificates. If, howlocated thereat. ever, it should be deemed advisable to transfer Encashment of checks, warrants, and drafts the custody of these trust funds to Federal Redrawn against the Treasurer of the United serve Banks or to any other private corporation States and presented at a subtreasury for or corporations, it would be necessary to make a payment. special deposit of such funds in vaults especially The payment of United States coupons and constructed for the purpose and to maintain a interest checks. Federal guard or some form of adequate Gov- In addition to the foregoing the subtreasuries ernment control over such vaults. have the custody of a large part of the reserve Since the Federal Reserve Banks are, as I and trust funds, consisting of the gold coin and have already stated, private corporations, just bullion and silver dollars deposited to secure as are the national banks, the duty of providing gold and silver certificates and greenbacks. the necessary storage vaults and of assuming The receiving of deposits and payment of the custody and control of these trust funds checks has been assumed to a large extent could not be imposed upon the Federal Reserve since the establishment of the Federal reserve Banks by legislation. It could only be accomsystem by the designation of Federal Reserve plished by negotiation and agreement, involv- Banks as Government depositaries in those ing, necessarily, compensation for the service subtreasury cities where Federal Reserve performed. Whether or not arrangements Banks are located. Federal Reserve Banks could be made with Federal Reserve" Banks are located in the subtreasury cities of Boston, or any private institutions for the custody of New York, Philadelphia, Chicago, St. Louis, these trust funds upon terms and under conand San Francisco. New Orleans has a ditions satisfactory to the Government and branch of the Federal Reserve Bank of Atlanta, at a saving in cost over the subtreasury methwhile neither Baltimore nor Cincinnati has a ods, while, at the same time, providing all of Federal Reserve Bank. the conveniences in handling these funds and It has always been deemed advisable to de- the same measure of security as now afforded posit the gold reserve and trust funds of the by the subtreasury system, is a matter upon Government in several places rather than to which I am unable to express an opinion .x I concentrate them in one, for reasons of security desire to repeat, however, my earnest convicas well as public convenience. tion that it would be unwise to commit the The Federal Reserve Act does not expressly custody of these trust funds to any private or by implication contemplate the substitu- institution or institutions. The custody of tion of the Federal Reserve'Banks for the sub- these trust funds, their maintenance, direction, treasuries, nor would it in my opinion be pos- control, and administration are distinctly a sible, or advisable if possible, to attempt such governmental function, and should be exera substitution. While the general or current cised only by the Government. fund of the Treasury may, in the discretion of Aside from the custody of the trust funds of the Secretary, be deposited in the Federal the Government, the subtreasuries perform a Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

112 FEDEEAL EESERVE BULLETIN. FEBRUARY 1.1917. highly useful service to the public in making possible to reduce the expense of operating exchanges of money, supplying money and these institutions in some, if not in all, of the coin where needed, and reducing the cost and cities where they are now located. expense of shipments of money and coin from The amount of the Government funds in a common center. It is necessary to maintain each subtreasury, the volume of the total the facilities and conveniences provided by transactions annually performed by them, and the sub treasuries in the large centers of bxisi- the cost of maintaining these institutions are ness in the country, such as the cities in which set forth in the following table: the subtreasuries are now located. Even if these particular functions could be transferred Expense to Federal Reserve Banks where they exist, the Government Total transac- of main- Subtreasury. funds held tions, fiscal tenance, services rendered by the substituted agencies June 30,1916. year 1916. fiscal vear would have to be compensated for. This 1916. would involve expense to the Government, while, at the same time, the facilities provided Baltimore 812,573,371.07 §108,215,675.59 $33,749.53 Boston 34,452,695.24 217,020,680.17 52,051.29 might not be as thorough and satisfactory as Chicago 120,537,589.79 597,365,033.95 84,325.04 Cincinnati 31,388,654.90 105,703,081.30 28,819.14 those supplied by the subtreasuries themselves. New Orleans 31,917,751.13 73,990,519.44 27,481.22 New York 329,402,485.45 2,464,715,492.12 187,587.75 It has been suggested that the subtreasuries Philadelphia 26,183,266.27 473,623,903.18 57,792. 76 are merely conveniences and not necessities, St. Louis 48,629,847.19 193,370,692.54 37,385.63 San Francisco 99,088,010.01 291,058,033.53 25,812.27 and that their duties might be performed Total 734,173,671.05 4,525,063,111.82 535,004.63 entirely by the Treasury in Washington. This is in a sense true, but the cost of handling all the business from a common center, in a It will be seen that the cost of maintaining country so extensive as the United States, these institutions, treating the subtreasury might be greater than the expense of the sub- system as a whole, is only one one-hundredth treasury system, whereas the delays and of 1 per cent, approximately, on the total inconveniences which the public would have transactions involved—an insignificant sum to suffer might prove a very serious handicap compared with business done, the important upon business. It could with equal force be service performed, and the conveniences afargued that internal revenue offices throughout forded to the public. Aside from New York, the United States could be abolished and all the cost of maintaining the other eight subof the work done at Washington, and, in like treasiiries is $347,416.88, which is a commanner, that many of the customs offices paratively small sum to pay for the service and throughout the country could be abolished and convenience they provide. If these instituall of the work done from Washington. It is tions were abolished, the total cost of operatthe duty of the Government to provide ing them would not be saved, as a counter adequate facilities to meet the convenience expenditure by the office of the Treasurer in and necessities of the public in all parts of the Washington, resulting from the increased work country, and the problem must be considered that would be thrown upon that office, would as a whole and not merely in detail. be entailed. It may be possible to reduce the expense of I am of the opinion that it would be inadvisadministration of some, or all, of the sub- able at this time to abolish all, or any, of the treasuries. It has been only one year since subtreasuries. It is an important matter and the Federal Reserve Banks were made Govern- should be considered deliberately. With the ment depositaries and fiscal agencies, and the test of further experience it may develop that current or general funds of the Government the functions of the subtreasuries, or some of in such cities transferred to Federal Reserve them, may be transferred to Washington, or Banks. About that time I appointed an im- to some other agency, but action should not be provement committee (described in my annual taken hastily or inadvisedly. report of 1915) to make a careful study of I regret exceedingly that my necessary departmental methods in all directions and to absence from Washington, in connection with report upon the best means of improving the the establishment of the Federal farm loan general administration of the Treasury service banks and other public business, made it imin its various important branches. The ad- possible for me to submit this report to the ministration of the subtreasuries is one of the Congress at an earlier date. subjects for investigation, and I sincerely hope Respectfully, that within another year it may be found W. G. MOADOO, Secretary. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FEBRUARY 1,1917. FEDERAL RESERVE BULLETIN, 118 Commercial Failures in 1916. were $16,745,274, against $19,605,274 in the previous year and $30,899,162 in 1914. Analysis of the failure statistics compiled by R. G. Dun & Co. shows that the reduction in Failures in 1916 by Federal Reserve districts. the commercial mortality during 1916, as compared with recent years, was generally shared Total commercial failures. Manufacturing. by the different Federal Reserve Bank districts. Districts. Num- They were 16,993 suspensions, involving ber. Assets. Liabilities. I $196,212,256, last year. Of this aggregate, 1,639, or 9.1 per cent, occurred in the first dis-No. 1 1,639 $6,035,280 $15,304,555 i 597 $6,957,850 No.2 2,834 20,805,153 47,407,166 1,078 20,915,996 trict; 2,834, or 16.8 per cent, in the second; No.3 974 6,407,292 11,032,593 200 5,236,501 No.4.. 1,278 14,282,736 17,683,783 328 ! 5,256,429 974, or 5.7 per cent, in the third; 1,278, or 7.5No.o 1,096 7,255,180 11,028,457 190 I 3,978,364 No.6 1,707 15,681,930 22,056,677 209 I 4,948,258 per cent, in the fourth; 1,096, or 6.6 per cent, No. 7 2,174 13,535,940 23,117,920 552 8,679,723 No.8 1,042 5,580,537 8,888,513 153 ! 2,101,383 in the fifth; 1,707, or 10 per cent, in the sixth; No.9 540 3,439,258 4,724,399 113 ! 1,365,816 No. 10 802 6,038,015 8,808,637 147 ; 4,955,525 2,174, or 10.9 per cent, in the seventh; 1,042, or No. 11 870 4,205,768 8,571,775 82 | 2,444,331 No. 12 2,028 10,331,937 17,587,781 487 ! 6,159,404 6.5 per cent, in the eighth; 540, or 3.2 per cent, United States...! 16,993 113,599,026 196,212,256 4,196 I 72,999,580 in the ninth; 802, or 5.8 per cent, in the tenth: 1915 22,15(5 183,453,785 302,2S6,148 I 5,116 | 112,026,484 1914 18,280 205,293,046 357,908,850 ! 4,620 ! 135,636,279 870, or 5.1 per cent, in the eleventh; and 2,028 1913 16,037 174,688,151 272,672,288 ! 4,243 : 123,122,528 1912 -. I 15; 452136,538,168 203,117,391 I 3,839 • 86,719,8,32 in the twelfth district. The liabilities, as usual, show rather wide Trading. Other commercial.; Bank failures. variation, although in each instance there is a Districts. substantial falling off from previous years. N b u e m r. - Liabilities. N b u e m r. - Liabilities. N b u e m r. - Liabilities. The second district, which includes New York J_ City and tributary territory, provides the larg- No. 1 918 S6,602,606 124 §1,744,099 ! S175,000 No.2 1,589 18,438,428 176 8,052,742 ! 1,200,000 est total, with $47,407,166. In the seventh No. 3 607 4,782,736. 47 1,013,356 : 100,000 No.4 879 6,094,593 71 6,332, 761 972,601 district the indebtedness was $23,117,920; in No.o 873 5,819,165 33 1,230,928 480,000 No.6 1,440 11,492,300 58 5,616,119 . 3,489,178 the sixth, $22,056,677; in the fourth, $17,683,- No. 7 1,510 10,037,399 112 4,400,798 i 1,311,000 No.8 840 i 6,181,980 49 605,150 ! 965,000 783; in the twelfth, $17,587,781. Smaller No.9 408 ! 3,179,689 19 178.894 !. No. 10... 610 i 3,132,948 45 720,164 65,000 amounts were supplied by other districts, the No. 11... 758 ; 5,641,494 ! 30 485,950 ! 1,489,000 No. 12... 1,431 ! 9,970,490 ' 110 1,457,887 I 150,000 ninth reporting only $4,724,399. United There were 50 banking failures, with liabili- States. 11,923 91,373,828 874 31,838,848 50 ! 10,396,779 1915. 16,030 150,233,647 1,010 40,026,017 133 1 37,223,334 ties of $10,396,779, in 1916. Sixteen, involving 1914. 12,851 :'1O5,864,852 809 56,407,728 212 56,005,107 1913. 11,145 ,115,115,212 649 34,434,548 120 31,546,314 $3,489,178, occurred in the sixth district; 9 in 1912. 11,011 ! 91,779,905 602 24,617,594 79 24,219,522 the seventh for $1,311,000; 6 in the eleventh Failures during December. for $1,489,000; 1 in the second for $1,200,000; 6 in the fourth for $972,601; 4 in the eighth for District. Number. Liabilities. $965,000; and 2 in the fifth for $480,000. In the six other districts banking defaults were in- No. 1 Ill 8952,201 No 2 204 2,448,872 significant, in no instance exceeding $175,000, No. 3. .. 65 1,514,179 No. 4 105 4,465,564 while in the twelfth district none were reported. No. 5 76 1,494,709 No. 6 .. 142 1,601,960 Since the latest returns afford the best indi- No. 7 193 1,393,976 No.8 84 85S,932 cation of present conditions, there is much that No.9 ... 43 295,002 is gratifying in the statistics of December fail- N N o o . 1 1 0 1 5 4 4 0 2 2 S 5 7 4 , , 2 C 2 -4 2 G ures. Commercial defaults last month num- No. 12... 145 1,177,945 bered only 1,252, the smallest both in numbers Total. 191 fi . . . . . . - 1,252 16,745,274 1915 1,704 19,605,274 and indebtedness for the period of any year 1 1 9 9 1 1 4 3 1 1 , , 9 51 3 4 8 • 3 3 1 0 , , 4 8 8 9 0 0 , ,1 9 6 6 2 1 back to 1911 and comparing with 1,704 in 1915 1912 1,311 18,164,589 1911 1,226 17,659,602 and 1,938 in 1914. The liabilities for the month 1910 1,128 17,039,081 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

114 FEDERAL RESERVE BULLETIN. FEBRUARY 1,19 IT, INFORMAL RULINGS OF THE BOARD. Below are reproduced letters sent out from engaged in farming, gives an unsecured note time to time over the signatures of the officers to Henry Jones, engaged in the fertilizer business, it would seem entirely proper to report or members of the Federal Reserve Board the item as "Unsecured commercial and inwhich contain information believed to be of dustrial paper," unless there is information on general interest to Federal Reserve Banks and hand which makes it clear that Jones was to member banks of the system: use the proceeds of the loan for agricultural purposes. In case the note was secured by Bill of Lading Drafts. 20 bales of cotton, it would be proper to report (To a Federal Reserve Bank.) it as "commercial and industrial paper— I have received your letter of December 26, secured," unless the purpose of the loan was asking that you be advised in what manner clearly stated to be agricultural. Nor would you might properly handle bill of lading it make any difference in classification were drafts forwarded to you for collection by the payee of the note reported as "farmer." your member banks. In case Farmer Smith gives to Richard Jones This class of business has been undera note secured by a lien on 25 steers (documents taken by several of the Federal Reserve attached to note or not), it would be proper to Banks as a collection transaction. The drafts report the item as live-stock paper, unless are credited upon receipt and when paid the there is information to the effect that the prosending bank is charged interest at the pubceeds of the loan have been or are to be used lished rate for the time the draft is outstanding for agricultural purposes. plus the actual cost of collection. It is clear that all six-month paper is to be ^For your information I am sending you reported either as agricultural or live-stock herewith a copy of circular issued by the paper. Item " Total Ibills discounted," shown Federal Reserve Bank of Minneapolis to its in the lower half of Form 38, should, of course, member banks, setting forth the terms and equal total of subdivision 1 (Bills discounted— conditions under which it accepts bill of lading members), in the upper half of the form. drafts for collection. It is realized that the above explanations DECEMBER 29, 1916. by no means exhaust all possible combinations, but it is thought that they will prove helpful Agricultural and Live-Stock Paper. to your discount department in the prepara- (To Federal Reserve Agent3 and Banks.) tion of the weekly statement on Form 38. In answer to inquiries received from some JANUARY 17, 1917. banks as to proper methods of classifying the discount material on hand under the several heads shown in the lower portion of Form 38, Acceptances for Advertising. especially under the head of "Agricultural and (To Federal Reserve Agents and banks.) live-stock paper," I would say that it is the A number of letters have been addressed to desire of the Board that the Federal Reserve tlie Federal Reserve Board, raising the question Banks ascertain in all cases whether the original whether a trade acceptance, which is defined in loan has been obtained from the rediscounting the Board's regulations as "a draft or bill of member bank for agricultural, industrial, or exchange drawn by the seller on the purchaser commercial purposes so that all discount items of goods sold and accepted by such purchaser," of the Federal Reserve Bank might be re- includes a draft or bill of exchange based on the ported to the Board properly classified. purchase of advertising space. In classifying the discount material the Fed- The term "goods " as used in the regulations of eral Reserve Banks should in the first place be the Board includes goods, wares, merchandise, or guided by the stated purpose of the original agricultural products, including live stock, and loan, as reported by the rediscounting member because of the doubts raised as to whether this bank. In case this purpose is stated only in term is broad enough to include advertising general terms, as e. g., "in accordance with space the Board has ruled that aTdraft or bill section 13," the occupation of the borrower ?i of exchange drawn by a publisher/ or other adshould be used as a guide in classification. vertising agency, on the purchaser of adver- Thus, if John Smith, a merchant, who is also tising space and accepted* by sucKgpurchaser Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FEBRUARY 1,1917. FEDEBAL BESEBVE BULLETIN. 115 shall be considered a trade acceptance, pro- Operation of the Clearing Plan. vided the advertisement on which the draft or bill is based is for the purpose of promoting or The following table shows briefly the clearfacilitating the production, manufacture, dis- ing operations of the Federal Reserve system tribution, or sale of goods, wares, merchandise, | for the monthly period ending January 15, or agricultural products, including live stock; | 1917, with comparative figures for each of the and provided further that such advertisement j is not illegal and is not for the purpose of pro- five preceding months: moting or facilitating any transaction which is prohibited by the laws of the State in which it j Operations of the Federal Reserve interdisirict clearing system Dec. 16, 1916, to Jan. 15, 1917. is to be consummated. j Each Federal Reserve Bank should take such steps as it deems iiecessar}' to satisfy itself that; iNonmemjber banks a trade acceptance covering the sale of adver- ' Average Average Member from l t e is t i t n e g r. space is of the character described in this Bank. n h o d a f u n a m i i t d l e b l y m e e . d r s a c m l d e o a a u r i n l i y n t; g o . f d i b i n s a t n r th i k c e s t. le a c w c r h e t h e e i c d c c k o h l s a - t JANUARY 23, 1917. par. Boston 39,975 !S11,479,644 402 242 New National Bank Charters. New York 43,333 23,437,362 313 Philadelphia.., 31,468 17,143,755 232 The Comptroller of the Currency reports the C R l i e c v h e m la o n n d d , 1 16 7 ) . 9 4 9 9 3 6 9 8 , , 0 0 7 5 2 7 , , 7 9 0 8 1 3 j 5 75 2 2 1 2 4 8 9 6 2 following increases and reductions in the num- A Ch tl i a ca n g ta o , , 2 1 0 4 , , 0 1 1 3 6 3 1 4 3 , , 1 5 5 2 3 2 , , 3 7 6 93 1 1,0 3 4 8 4 9 1, 4 42 1 9 6 ber of national banks and the capital of na- S M t. i n L n o e u ap is olis 1 9 5 , , 7 2 0 5 1 6 8 6 , , 1 5 7 5 4 4 , , 5 2 8 4 9 5 4 7 6 0 8 7 1, 8 1 8 0 3 0 tional banks during the period from December D K a a l n la sa s s City.... , 1 1 3 3 , , 9 3 1 4 0 8 8 5 , , 1 44 5 3 2 , , 2 0 5 7 1 2 9 61 4 9 3 1 ' .4 2 0 2 8 1 23,1916, to January 19, 1917, inclusive: San Francisco. 6,304 1,617,333 522 1,108 Total, Dec. 16 to Jan. 15.. 241,933 1121,814,589 7,622 8,130 Banks. Nov. 10 to Dec. 15. 236,038 1125,603,732 ' 7,627 8,065 New charters issued to 13 Oct. 16 to Nov. 15. 227,489 1115,001,224 i 7,623 8,059 Sept. 16 to Oct. 15. 204,891 i 97,666,107 I 7,618 7,459 With capital of $980.000 Aug. 16 to Sept. 15. 177,397 i 78,559,704 7,618 7,449 July 15 to Aug. 15.. 133,113 i 59,301,696 7,624 i 7,032 Increase of capital approved for 18 With new capital of 2,140,000 ; Fiduciary Powers. Aggregate number of new charters and banks increasing capital 31 ; The applications of the following banks for With aggregate of new capital authorized 3,120, 000 j permission to act under section 11 (k) of the Number of banks liquidating (other than ! Federal Reserve Act have been approved since those consolidating with other national i the issue of the January Bulletin: banks) 13 Capital of same bank 1,175, 000 DISTRICT NO. 1. Number of banks reducing capital 3 Reduction of capital 125. 000I Trustee, executor, administrator, and registrar of stocks and bonds: Total number of banks going into liquida- Merrimack National Bank, Ilaverhill, Mass. tion or reducing capital (other than those First National Bank, Bar Harbor, Me. consolidating with other national banks). 16 Aggregate capital reduction ], 300,000 DISTRICT NO. 4. Trustee: The foregoing statement shows the aggregate of First National Bank, New Cumberland, W. Va. increased capital for the period of the banks embraced in statement was 3,120, 000 Registrar of stocks and bonds: Against this there was a reduction of capital Union National Bank, Cleveland, Ohio. owing to liquidations (other than for consolidation with other national banks) and re- DISTRICT NO. 5. Trustee: ductions of capital of 1,300,000 First National Bank, Appalachia, Va. Net increase 1,820,000 DISTRICT NO. 7. In addition to the changes noted above, two banks with an aggregate capital of $1,050,000 were placed in the Trustee, executor, and administrator: hands of receivers during this period. First National Bank, Kanawha, Iowa. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

116. FEDERAL RESERVE BULLETIN. FEBRUARY 1,1917. LAW DEPARTMENT. The following opinions of counsel have been There does not seem to be any doubt, therefore, authorized for publication by the Board since that a note or a bill the proceeds of which have 'the last edition of the Bulletin: been used or are to be used in the payment for advertising space is a note or bill eligible for Trade Acceptances Based on Advertising Space. rediscount under the provisions of section 13 The Federal Reserve Board may properly rule that a of the Federal Reserve Act. draft or bill of exchange drawn by the seller on the purchaser of advertising space and accepted by such purchaser The question remaining for consideration is is a trade acceptance. whether such an acceptance, though un- JANUARY 9, 1917. doubtedly eligible for rediscount as a bill of SIR: The question has been raised whether exchange, is a trade acceptance which is entitled a bill drawn by the seller of advertising space to the special discount rate authorized by the and accepted by the purchaser is eligible for Federal Reserve Board for that class of paper. rediscount by Federal Reserve Banks under Section 14 authorizes Federal Reserve Banks the provisions of sections 13; and if so, whether "to establish from time to time, subject to it is a trade acceptance within the meaning of review and determination of the Federal Rethe regulations of the Federal Reserve Board. serve Board, rates of discount to be charged There is no provision of the Federal Reserve by the Federal Reserve llsmkfor each class of Act which in terms authorizes the rediscount paper," and the Board, in the exercise of the of trade acceptances or any accepted bills of authority conferred upon it, has determined exchange other than bankers' acceptances. that a trade acceptance, entitled to the trade That right, however, is included in the right acceptance rate, is "a draft or bill of exchange to rediscount bills of exchange, since a bill does drawn by the seller on the purchaser of goods not cease to be such merely because it has been sold and accepted by such purchaser." accepted. Section 13 authorizes any Federal If advertising space may properly be con- Reserve Bank to— sidered goods—that is, as defined by the Board "discount notes, drafts, and bills of exchange itself, "goods,wares, merchandise, or agricultural arising out of actual commercial transactions; products7'—it clearly comes within the present that is, notes, drafts, and bills of exchange issued or drawn for agricultural, industrial, or definition of the term "trade acceptance.77 commercial purposes, or the proceeds of which Advertising rates are ordinarily based upon have been used, or are to be used, for such the amount of space employed, that is to say, purposes.7; the number of inches sold to the person seeking The Federal Reserve Board, in exercising advertisement. The sale of this space, whether the right vested in it to define the character of in a publication or elsewhere, may, therefore, the paper eligible for discount, has determined be treated as analogous to the sale of so many in regulation A, series of 1916, that a bill of printed posters, cards, or circulars which would exchange, to be eligible for rediscount, must come within the classification of goods, wares, be one "the.proceeds of which have been used and merchandise, though it is probable that the or are to be used in producing, purchasing, car- change made is based very largely on the servrying, or marketing goods, wares, merchandise, ices rendered in printing and distributing the or agricultural products in one or more of the advertisement. steps of the process of production, manufac- Whether space sold is treated as goods, ture, or distribution.7' wares, or merchandise within the meaning of Advertising has become one of the most the Board7s regulation or whether the conclugeneral and effective means of providing a sion is reached that advertising rates are based market for goods and is clearly and reasonably primarily upon services rendered is, however, a natural step in the process of distribution as relatively unimportant, since the Board may contemplated by this regulation of the Board. amend its regulation if it deems this necessary Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FEBRUARY 1,1917. FEDERAL RESEBVE BULLETIN. 117 in order to give the trade acceptance rate to Under the provisions of the National Bank this class of acceptances. Act no national bank can terminate its cor- It is the opinion of this office that the ques- porate existence as a national bank without tion whether such an acceptance is entitled to first going into liquidation, and the laws of New the special rate given to trade acceptances is York, which provide that a "national bank one not of law but solely of regulation by the may become a State bank/' contemplate the Board. The Board may legally either construe dissolution of the national bank and provide its present regulation to include such an accept- merely the manner in which the State corporaance or may amend that regulation so as tion may organize contemporaneously with the expressly to include it. dissolution of the national bank. There is and Respectfully, can be no "conversion77 of a national bank into a State bank in the sense that the original cor- M. C. ELLIOTT, Counsel. poration continues to exist under a changed or To Hon. W. P. G. HARDING, new jurisdiction. The fact that the national Governor Federal Reserve Board. bank is compelled to liquidate before it can Rights of Liquidating National Bank to Accrued Dividends, i reorganize as a State bank precludes the pos- Any national bank which liquidates and reorganizes as | sibility of such a construction of the transaction, a State bank forfeits its rights to accrued dividends from j The laws of New York provide that "all the its Federal Reserve Bank. Such rights do not survive in j f } dissolved national banking assoproperty o tle favor of such State b a nk even though it immediately be- i ". . i n- v , •> / v -i N <? becomes a member bank. i ciatlOn sna11 immediately (upon dissolution of DECEMBER 28, 1916. • the national bank and beginning of the cor- Sra: The attached letter raises the question j porate existence of the State bank) by act of whether a national bank which is a member of j law and without any conveyance or transfer be the Federal Reserve Bank of New York and ; vested in and become the property of such which reorganizes as a State bank and imme- ! State bank." This language can hardly be diately becomes a member of the Federal Re- . construed to mean that the State bank's existserve System,, may retain the rights of the I ence is a continuation of that of the national liquidated national bank to accrued dividends, j "bank. On the contrary, the separate existence There are numerous decisions of the State j of the two corporations is specifically recognized and Federal courts to the effect, that any State \ and ^is manifestly contemplated that the State bank which converts into a national bank under j bank is in le§al effect a new and independent the provisions of the national banking laws, re- j corporation organized for the purpose of tains the identity of the original State corpora- j taking over the assets of a dissolved corporation and is a continuation of the same corporate j tion- The fact that the national banking laws body under a changed or new jurisdiction. If, require the liquidation of the national bank however, a State bank is forced to liquidate, before it can reorganize as a State bank under the laws of the State in which it operates, necessarily requires that construction. before it becomes a national bank, it can not In an opinion, published on page 17 of the properly be " converted" into a national bank. ; January, 1916, Bulletin, the conclusion was It is necessary under such circumstances that it j reached that a member bank which goes into "reorganize" as a national bank. If a State I voluntary liquidation relinquishes its right to bank first liquidates and then reorganizes as a | accrued dividends from its Federal Reserve national bank, the corporate existence of the \ Bank and is entitled to receive back only its original institution terminates and a new and I cash-paid subscriptions "and one-half of one separate corporation is organized. The factj per cent a month from the period of the last that the new institution may purchase all the dividend, not to exceed the book value thereof, assets of the liquidating bank can in no way \ loss any liability of such member bank to the legally affect the independent organization; Federal Reserve Bank.77 Upon liquidation of the new bank. • the member bank must surrender its Federal Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

118 FEDERAL RESERVE BULLETIN. FEBRUARY 1,1917. Reserve Bank stock for cancellation. The new officer of the bank in the performance of any of State bank, if it desires to become a member the duties generally assigned to an officer, bank, would have to subscribe for new stock they should be considered "officers77 within and become a member under the provisions the meaning of the Clayton Act, irrespective of of section 9 of the Federal Reserve Act. As whether or not they receive any compensation such it would acquire no greater rights than for their services. any other State bank becoming a member bank. On the other hand, if they are paid any sal- In the opinion of this office, therefore, a ary, fee, or compensation for their services, liquidating national bank can not assign its whether for the performance of any special or rights to dividends which have accrued on its routine duty of the bank, or for the benefit of Federal Reserve Bank stock to any other their suggestions or advice in the conduct of the corporation, because such rights cease to exist business or operations of the bank, they would immediately upon liquidation. j at least come within the classification of Respectfully submitted. ! "employees77 under the settled decisions of the M. C. ELLIOTT, Counsel. courts on this subject. To Hon. W. P. G. HARDING, I If, however, the members of the advisory Governor Federal Reserve Board, ; committee are not assigned and actually do not | perform any duty usually performed by an Advisory Committee of Member Banks. i officer of the bank, and if no salary, fee, or com- The members of an advisory committee of a nationali pensation is paid to them, then the mere fact bank are not necessarily officers, directors, or employees of j that they give the bank, its directors or its such bank "within the meaning of section 8 of the Clayton | officers, the benefit of their advice as to, the Antitrust Act. They can not be directors unless elected | general policy of the bank's business should by the shareholders; and whether they are officers or emi not of itself make them " officers or employees77 ployees depends entirely on the scope of the rights and duties assigned to them by the board of directors. \ of the bank; and, as above shown, they can not be considered "directors,77 unless reg- JANUARY 22. 1917. ularly elected by the shareholders. This ad- SIR: YOU have asked whether or not a person vice, however, should be confined to queswho is appointed a member of an advisory comtions of general policy and should not become mittee of a national bank is an " officer, director, or employee77 of such bank within the meaning so specific as to make their service substantially that of an officer employed by the directors to of section 8 of the Clayton Antitrust Act. perform the specific and detailed duty of A determination of this question depends so passing on concrete questions which arise in the much upon the facts of each case that it is ordinary course of the bank7s business. impossible to make any general ruling on the It is the opinion of this office therefore that, subject. It is clear, however, that members of under certain circumstances, the members of an advisory committee appointed by the board an advisory committee appointed by the board of directors of a national bank can not act as of directors may not be held to be directors, nor be considered "directors''7 of that bank. officers, or employees of the bank within the Section 3145 of the Revised Statutes requires meaning of section 8 of the Clayton Act. Each that directors be elected at the regular stockcase, however, should be carefully considered holders7 meeting in January and not by the on its own facts in order to determine whether existing board of directors, except when it is the rights and powers of the advisory commitnecessary to fill a vacancy. tee are such as to make its members, in sub- Whether or not they are "officers or emstance, if not technically, officers or employees. ployees77 would seem to depend on the scope of Respectfully, the rights and duties assigned to them by the M. C. ELLIOTT, Counsel. board of directors. If they are given authority To Hon. W. P. G. HARDING, to pass on loans or to act for the bank or any Governor Federal Reserve Board. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FESBUABY 1,1917. FEDERAL RESERVE BULLETIN. 119 SUMMARY OF BUSINESS CONDITIONS JAN. 23, 1917. District No. 1— District No. 2— District No. 3— District No. 4— District No. 5— District No. 6- Boston. New York. Philadelphia. Cleveland. Richmond. Atlanta. General business- Good, with few j Very good Good., Exceptionally Continues satis- Good. new commit- ; prosperous. factory. ments. Crops: Condition. Seasonal winter... Monetary yield Fruit good. 60 per cent above 1915. Outlook. Extensive Drepa- Winter grain fair. rations for next crop. Industries of district.. Busy, with mills : Busy Busy | Very active. Running full' at Good. well sold in ad- ' profitable prices. vance. Construction, build- Increased ; Fairly busy. Number of per- Normal. Increasing Not very active at ing, and engineering. mits decreasing. I activity. present. Foreign trade Increased Increased Very large Still showing large Slight increase. percentage of increase. Bank clearings.. Increased ..do. Increase j Generally greater 10 per cent in- Increase. crease. Money rates Tendency down- Considerable re- Decreasing i Lower 4 to 6 per cent. Slight increase. ward. duction and Some demand easier tendency. in evidence for pitching new crops. Railroad, post office, Little change Increased Net railroad earn- Above average Continued Increasing. and other receipts. ! ings continue to increases. I decrease. Post ! office gross re- : ceipts increas- ' ing. Labor conditions Well employed ! Continued high Unsettled Some unrest. Fully employed Fair. I wages and full at good wages. | employment. • Outlook. Moderately Conservative,! Apparently good; Promising Encouraging Good. satisfactory. but generally i but possibility favorable. of peace has added u n - I certainty. Remarks.. Good business ex- ; Car and natural General business pected to last \ gas shortage. conditions good. for several months. ; 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 j Active Good Prosperous but Good. Post-holiday lull, Active. quiet. all lines; good prospects. Crops: Condition Winter wheat good Satisfactory Fair Outlook Encouraging .....do Very good Good. Industries of district.. Busy; many at ca- Active Active Active , Generally active.. Hampered by lack pacity. of transportation facilities". Construction, bi u iding, Slow at this season Decrease. Limited by cold Less activity Usual amount for 20 per cent increase and engineering. weather." midwinter sea- over year 1915. son. Foreign trade Exports from Gal- Increasing. veston show increase of 127 per cent for December over 1915. Bank clearings Increasing... Increase. Little change. General increase.. 21 per cent increase j32 per cent increase for December; 23 over month in per cent increase 1915. for year. Money rates. Steady Easy and un- Steady Unchanged Rates easy; siiglit changed. evidence of in- Easing. crease, i Railroad, post office, Increasing. Increase Increases Increasing Railroad: Increase i and other receipts. over 1915 and \Increasing. above normal for j this season. Post | office: 17 per cent' increase. Labor conditions Good Well employed; Labor fully em- Better than nor- Labor fairly well Well employed; i wages high.* ployed. mal lor season. employed. wages advancing. Outlook Good Encouraging Good Promising Unemployment Favorable. amoug building trades. Remarks. Outlook good ex- Spring prospects Conservatism ow- 1916 set new roc- Rains assure good cept as affected : considered very ing to uncertain- ords; optimism crops; anticipate by situation | favorable. ties of the fu- general; much a prosperous abroad. | ture. depends on year. crops. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

120 FEDERAL RESERVE BULLETIN, FEBRUARY 1,1917. GENERAL BUSINESS CONDITIONS. There is given on the preceding page a sum- Worsted mills have keenly felt advances in mary of business conditions in the United costs of raw materials, and this is serving to States by Federal Reserve districts. The re- restrict their output. Wool prices are strong, ports are furnished by the Federal Reserve with demand somewhat quieter. Prices are Agents, who are the chairmen of the boards of now approaching, or have passed, the high directors for the several districts. Below are record made in 1871-72, and there is much the detailed reports as of approximately Jan- diversity of opinion among brokers as to future uary 23: prices. Wool is being bought in the West on the sheep's back at unprecedented prices for DISTRICT NO. 1—BOSTON. delivery next summer. Manufacturers in this district are sold far Cotton mills are finding buyers more anxious ahead and except for danger of cancellation for quick deliveries and less inclined to make in case of a break in the market for their par- distant future contracts than they were three ticular commodity, have little interest in cur- or four months ago. Mills, for the most part, rent domestic developments, being concerned are well sold up and, therefore, are booking only in those international factors which affect little new business. The print cloth market is the more distant future. dull. In fine and fancy goods production costs The exchanges of the Boston Clearing House, are too high to allow of much cutting in prices, however, show plainly that business is being especially as the long cotton necessary for this transacted on a large scale. These clearings kind of goods is still selling near the prices for the week ending January 20,1917, amounted quoted when the cotton market was at its to $239,287,699, an increase of about 9J per highest. cent, 68 per cent, and 45 per cent, respectively, Money rates reflect the heavy excess reserves over the corresponding weeks of 1916,1915, and in New York, the tendency being downward. 1914. While a part of this increase is probably Although the surplus reserves of the Boston due to the advanced cost of all products, there banks for the week ending January 20 is no doubt that it indicates a greatly increased amounted to $42,314,000. this was a decrease volume of business as compared with the years of about $2,800,000 from the previous week previous to 1915. and about the same as it was on the first of Boot and shoe manufacturers are nearing October. The total excess reserve reported the completion of their spring and summer con- on October 23, 1915 (the highest point retracts and the next month or two will be de- corded since the inauguration of the Federal voted to clearing up these orders and starting Reserve System), was $81,597,000, or nearly on fall and winter goods. Retailers have double the present amount. placed orders heavily and at prices much Demand money continues free at 3 per cent, higher than those of a year ago. On the whole, but only because the larger banks refuse to consumers are making little complaint about reduce the rate below that figure, preferring to the advances which they in turn must pay and carry their balances in New York at 2 per cent retail business is reported good, especially in or to invest their surplus in bankers' acceptheavy shoes. Leather prices are no firmer ances. Banks are charging their commercial with domestic demand light. depositors 3J and 4 per cent, with some shad- Woolen and worsted mills continue busy, ing of the lower rate. Outside commercial with their production sold well in advance. paper ranges from 3J to 3J per cent, and year This is particularly true of the woolen mills. money is 4J per cent. Town notes have sold as Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FEBRUARY 1,1917. FEDERAL RESERVE BULLETIN. 121 low as 1 per cent, owing to the demand for those DISTRICT NO. 2—NEW YORK. securities by corporations to escape taxation. Manufacturers and distributors of goods re- Bankers' acceptances, 3i per cent upward unin- port a satisfactory volume of business for this dorsed, 3 per cent indorsed. These, however, season of the year and, as a rule, they foresee are the rates established by this bank, and the from orders booked ahead a continuance of going rates in the open market are somewhat active trade for several months. There is evilower. dent, however, a growing disposition to exercise Loans and discounts of the Boston Clearing greater caution in making commitments for House banks on January 20, 1917, show an in- later in the 3Tear. Present indications are that crease of 88,657,000 over last month, while de- buying, except for actual contracts and known mand deposits have decreased 8422,000 in the requirements, will be on a conservative scale same period. The amount "due to banks'7 on until the outlook for fall trade, both domestic January 20 was §149,955,000 as compared and foreign, is clearer and the trend of prices with $121,753,000 on December 16, 1916. less uncertain. The excess reserve of these banks increased A wholesome • decline in speculation is apfrom $25,816,000 on December 16, 1916, to parent. Large earnings during the last year $42,314,000 on January 20. are shown in the annual statements of corpora- It is too early in the JGELT for building and tjions and business concerns now being issued. engineering statistics to have much value as |Activity is sustained in retail trade by the compared with other years, inasmuch as one present general prosperity, the full employor two large contracts would change them ma- ment of labor at continued high wages, and the terially. These operations in New England, usual winter clearance sales. Collections are however, from January 1 to January 17, 1917,reported to be generally prompt and satisamounted to $8,287,000 as compared with factory. $7,307,000 for the corresponding period of 1916 An improvement has taken place in the and $10,973,000 for the same period in 1914, freight situation, the car shortage on January 1 the highest previous year on record. being 59,892 cars, as compared with a short- Exports from the port of Boston for Decem- age of 107,778 cars a month earlier. Comber, 1916, amounted to $21,669,660 as com- plaints arc fewer, but the congestion of freight pared with $16,329,327 for November, 1916, and slow deliveries are still a hindrance to and $10,805,886 for December, 1915. Imports business. for December, 1916, amounted to $19,381,587, The statement of the New York Clearing an increase of $8,323,340 over November, 1916, House members dated January 20, 1917, and $476,007 over December, 1915. showed loans, etc., $3,441,422,000, deposits The receipts of the Boston post office for $3,728,479,000, and excess reserves $202,- December, 1916, show an increase of $66,569, 472,630. Since December 2, 1916, these figor only about 7 per cent over December, 1915. ures show the following changes: Loans, etc., For the first 15 days of January, 1917, receipts increased $71,324,000, deposits increased $280,were about 2 per cent, or $5,917, less than the 016,000, and excess reserves increased $161,corresponding period last year. 471,320. The Boston & Maine Railroad reports net Recent figures of bank clearings, railway operating income, after taxes, for November, and postal receipts are higher than those of a 1916, as $1,079,945, as compared with $1,062,- year ago, while fewer failures are reported. 359 for the corresponding month of 1915. The Money rates have been considerably reduced New York, New Haven & Hartford Railroad by the rapid increase in deposits and reserves; reports net operating income, after taxes, for commercial paper, now ranging from 3 to 3J November, 1916, as $2,077,456, as compared per cent, is 1 per cent lower than a month ago. with $2,047,317 for the same month last year* Call loans at If and 2 per cent show a reduction Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

122 FEDEBAL BESERVE BULLETIN. FEBRUARY 1,1917. of 50 per cent from the rates prevailing during The year 1916 was one of comparatively low the last two weeks in December. The open crop production, but the prices obtained for market rates for bankers' acceptances have most of the crops were extraordinarily high. also declined about f per cent. In this district, although there was a slight The figures of the foreign trade at the port decrease in the production of the leading crops, of New York from January 1 to 13, compared the prices of the products show a gain of about with the corresponding period a year ago, are 44 per cent for 1916 over 1915. as follows: Exports, $117,569,312, an increase The tobacco crop of Pennsylvania totaled of $1,754,859; imports, $62,736,916, an increase 49,096,000 pounds in 1916, as compared to of $16,526,479. 42,390,000 pounds the previous year. Very The new British loan to be issued February little of the 1915 Lancaster County tobacco 1, 1917, will consist of one and two year 5-|- crop is now on the market. It has been selling per cent secured notes for $250,000,000. It is as high as 25\ cents per pound. Some of the reported that the Government of Uruguay has new crop has brought 22J cents, the highest arranged in New York for a loan of 2.500,000 price in many years. pesos at 6 per cent. A branch of the National The following table summarizes the results City Bank of New York has been opened at of the most important crops in Delaware, New Petrograd, Russia. Jersey, and Pennsylvania, as reported by the United States Department of Agriculture: DISTRICT NO. 3—PHILADELPHIA. While an excellent undertone to general business conditions still prevails in this dis- (OOO A 's c o re m ag it e ted). Yield per acre. trict, the possibility of peace has caused hesi- j Crop. tation, with one or two exceptions, in all lines j 1916 1915 1916 1915 of business, and has developed a spirit of i Bushels. Bushels. caution on the part of buyers in contracting j Buckwheat 288 273 14.3 21.0 Corn 1,925 2,015 38.6 37.7 for goods in excess of immediate wants. jOats 1,203 1,214 30.9 37.6 Potatoes (sweet) 29 29 104.3 149,8 Commercial failures in this district were i Potatoes (white) 307 384 82.6 86.0 Rye 331 346 17.4 IS. 7 fewer in number last year than during the Winter wheat... 2,139 2,093 17.8 17.5 preceding year, and the liabilities of the com- Total 6,282 6,354 panies involved were less in amount. Ref- Total production Total farm value erence to the following tabulation shows that (OOOVomitted). (000's omitted). 94 per cent of the concerns failing were con- Crop. ducting business with less than $5,000 capital. 1916 I 1915 1916 1915 Bradstreet's report of commercial failures in this district, Bushels. Bushels, j classified as to capital employed. Buckwheat 4,122 r ^ ! S4,571 Corn 74; 320 75,965 71,857 53,187 Oats 37,220 45,729 21,304 20,221 35,000 35,000 820,000 850,000 I §100,000 Potatoes (sweet) 3,025 4,345 3,401 2,993 1916 and to to I to i to Total. Potatoes (white) 3300,,331100 33,295 45,378 24,972 320,000. $50,000. 8100,000. | 3500,000. Rye 5,765 ! 6,468 6,392 5,465 winter wheat... 38,225 '.36,752 62,845 3S.419 I January 96 Total 192,987 i 208,280 215,748 349,732 February 103 March 4 101 April 2 67 May 2 -IS Rates for money in this district are easier June 8 50 July 2 57 than a month ago. The call loan rate, which August 5 65 September 2 73 reached 5 per cent before the close of the year, October 0 S7 November 7 86 has been marked down recently to 3£ per cent, December 1 | which was the ruling rate during the previous Total 869 i 30! 926 October and November. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FEBRUARY 1,1917. FEDEBAL BESEBVE BULLETIN. 123 The accompanying chart of the reserve condi- I esting to note the fluctuation in the excess tion of members of the Philadelphia Clearing : reserve. During the last two years deposits House Association during the past two years \ have increased steadily, and the excess reserve is probably indicative of reserve conditions I now (January 20) amounts to $44,000,000. throughout the district, and it may be inter- | "B £ 5 £ OF- PHILADELPHIA CLEANING HOUSE: ASSOCIATION DISTRICT NO. 4—CLEVELAND. are of the optimistic type, except in regard|to The only untoward circumstances in basic transportation and the fuel situation. All conditions|during the last month have been lines of commerce and industry seem to be the continuation'of car shortage and the cutting enjoying the fullest measure of activity, down of the supply of natural gas available for and have satisfying expectations for the year's manufacturing purposes. All reports received business. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

124 FEDERAL RESERVE BULLETIN. FEBRUARY 1,1917. Agriculture.—Weather conditions have not been unfavorable, since there has been con- P is e s r u m ed it . s Valuations. c P e e n r t tinuous seasonable winter for more than a Increase inor crease month. It is not likely that this condition has Dec. Dec, Dec, Dec, decrease. or been injurious in any part of the district. The 1916. 1915. 1916. 1915. cre d a e s - e. sales of tobacco in the southern section of the Akron, Ohio 238 170 S648,115 8566,425 881,690 14.4 district have been at unprecedented prices, Cincinnati, Ohio. 947 1,121 998,345 1,113,110 1114,765 110.3 Cleveland, Ohio.. 687 707 3,080,980 2,985,825 95,155 3.1 and the demand continues very active. Columbus, Ohio.. 111 99 242,340 150,340 92,000 61.1 Dayton, Ohio 141 62 341,278 120,195 221,083 183.9 Industries.—In the iron and steel trades Erie, Pa 59 67 132,805 104,523 28,282 27.0 Pittsburgh, Pa... 188 268 1,199,916 2,995,596 11,795.680 i 59.9 favorable conditions are reported generally. Toledo, Ohio 184 158 441,194 350,425 90,769 25.9 Youngstown, The demand continues insistent, and good Ohio 75 54 214,830 336,125 1121,295 136.0 prices 'are maintained in all branches. Glass Total 2,630 2,706 7,299,803 8,722,564 11,422,761 U6.3 and pottery plants are running to capacity. i Decrease. Shoe factories are busy filling orders for spring deliveries with indication of advancing prices. Bank clearings.—The bank clearings for the The withdrawals of Kentucky whisky were nine principal cities in the district for Janheavier in 1916 than ever known in the history uary 1 to 15, show an increase of nearly 40 of the business, and prices higher. Oil and per cen tover the same period last year. The coal producers report splendid business to the following table gives the comparative figures in extent that deliveries can be made. All other detail: manufacturing lines, including automobiles, automobile parts, tires, wearing apparel, clay products, electrical appliances, etc., make Jan. 1 to 15, inclusive. optimistic reports. Increase. i P n e c r r e c a e s n e t . 1917 1916 Mercantile business.—Jobbers and distributors report great activity, and all retailers show Akron, Ohio $10,941,000 So, 606,000 85,335,000 95.1 Cincinnati) Ohio. 86,980,299 70,827,250 16,153,049 22. g unprecedented volume of business for the sea- Cleveland, Ohio.. 146,664,370 92,501,751 54,162,619 58.5 son. Generally the year 1916 is characterized C D o a l y u t m on b , u O s, h O io hio . 2 9 1 , , 4 7 0 5 2 7 , , 9 90 5 0 6 1 7 6 , , 2 8 6 7 3 7 , , 3 5 2 0 9 0 4 2 , , 8 1 8 3 0 9 , , 4 6 0 2 0 7 2 2 9 8 . . 4 9 as a banner year in all branches. E Pi r t i t e s , b P u a rgh, Pa... 15 3 8 , , 7 8 2 3 1 4 , , 6 2 6 7 4 8 12 3 7 , , 0 6 4 5 0 3 , , 4 7 1 3 9 7 31,1 6 8 8 0 1 , , 5 2 4 4 1 5 2 24 2 . . 4 4 Both the wholesaler and retailer report a Toledo, Ohio 22,347,910 17,959,526 4,388,384 24.4 Young s t o w n, very satisfactory condition in reference to col- Ohio 9,699,135 4,204,941 5,494,194 130.6 Total 470,349,512 315,934,453 124,415,059 35.9 lections. Construction.—In all building lines the reports indicate improved feeling for the spring Money rates.—The end of the year witnessed season, and the demand for all classes of struc- exceedingly heavy deposits in the banks, and tural material continues very heavy. In some for the first 15 days in January money condiparts of the district housing facilities are inade- tions throughout the district were very easy, quate and open weather will usher in greater | the demand being light and rates exceptionally activity in building lines. The comparison of low for prime loans. It may be stated that valuations of building permits for the month of even up to nearly the end of the month in prac- December, 1916, with the same month of 1915,tically all of the centers there was an unusual in the nine larger cities of the district shows a jexcess of loanable funds. net increase of more than 16 per cent. The The demand for high-grade investment seollowing table shows permits issued and curities is very active, and the fluctuations in valuations: basic prices have been nominal. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FEBRUARY 1,1917. FEDERAL RESERVE BULLETIN. 125 Post-office receipts.—The activities in the ! South Carolina, notwithstanding very serious Postal Service in the nine larger cities are indi- | flood damage, and spotted crop conditions, cated below. ; makes a remarkable showing. Her industrial : products reach a valuation of $168,000,000, an : increase of $43,000,000 over 1915, and her Dec 1 e 9 m 16 b . er, Dec 1 e 9 m 15 b . er, d In ec c r r o e e r a a s s e e . P in e c r r o e r a c s e e nt : agricultural products reach a valuation of decrease. • $192,400,000, also an increase of $43,000,000 i over the previous year. Akron, Ohio S79,074 870,044 $9,030 12.8 C C i l n ev ci e n la n n a d ti , , O O h h i i o o 3 3 9 1 7 9 , , 3 0 5 2 9 4 3 36 1 6 9 , , 1 9 5 0 4 5 31 1 ,2 8 0 8 5 1 i 8 #. 5 2 | The resources of the national banks of the Columbus. Ohio 127,277 114,178 13,099 11.4 1 Fifth Federal Reserve District show an increase Davton. Ohio 70,113 70,884 i'771 i 1.0 Eric Pa 32,408 29,243 3,165 10.8 in total resources frgm $630,000,000, Decem- Pittsburgh, Pa 458,985 420,951 38,034 9.0 ; Toledo, Ohio 121,524 116,108 5,416 4.6 ber 31, 1915, to $733,000,000, November 17, Younsjstown, Ohio 35,921 30,160 5,761 19.1 i 1916, an increase of 16 per cent, Virginia Total 1,641,685 1,537,627 104.058 6.7 I leading with an increase of 23 per cent in 1 Decrease. totals. : Labor conditions.—There is still an acute The increase in wealth in the district extends demand for labor of all grades, yet on account to all lines—banking and production in every of the car shortage in the coal regions there is ' line of agriculture and manufacture—with a some restlessness because of inability to con- corresponding natural increase in distributinue employed full time. I tion. The volume of general trade has been In general the conditions in District No. 4 I abnormal, collections very much above the are unquestionably sound and promising. j average, and manufacturing has been prosperous, particularly among the cotton mills DISTRICT NO. 5—RICHMOND. I which are well sold ahead at profitable prices. Recent figures of the value of farm products Exports, bank clearings, railroad earnings, in the Southern States, including Oklahoma, and postal receipts have shown large increases, give a total valuation of $4,650,000,000, which and continue in full volume at the end of the is about 40 per cent of the entire value of farm year. products in the whole country. This, not- A number of banks in this district, particuwithstanding the fact that the South contains larly in the rural sections, have failed to realize only about one-third of our total population. the usual percentage of profits during the past- These products consist of cotton, cotton seed, year. This has been due, in a large measure, corn, wheat, oats, rice and other grains, bay, to the circumstance that many of the country tobacco, live-stock products, fruits, potatoes banks, relying on a generous revenue derived and other vegetables, the diversification of from exchange charged on their own checks, crops being more widespread than ever before have, because of the competition of banks in the history of this section. similarly situated, allowed themselves to drift The States of the Fifth Federal Reserve into the custom of paying interest on deposits District have produced the following values, under conditions and at rates which preclude comparison being made with 1915: the possibility of making safe loans at a reasonable profit. This matter is receiving consider- 1915 1916 ation in many quarters and it is confidently believed that more and more of our member Maryland §55,000,000 §87,000,000 banks are realizing the necessity for adjusting West Virginia... 09,000,000 87,000,000 Virginia 152,000,000 215,000,000 themselves to the more logical, and therefore North Carolina.. 197,000,000 274,000,000 South Carolina.. 148,000,000 192,000,000 sounder, conditions resulting from the opera- 521,000,000 855,000,000 tion of the Federal Reserve System. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

126 FEDEEAL EESERVE BULLETIN. FEBRUARY 1,1917c The port cities of the district have on the DISTRICT NO. 6—ATLANTA. whole experienced better rates for loans, and Trade conditions were satisfactory during many of the banks at these pointsfhave found the month of January. Manufacturers have profitable use for|bank| acceptances in the orders booked far in advance. Adding to this financing of heavy!exports. the splendid financial outcome of agricultural Advance orders for agricultural implements operations, there appears little prospect of are for greater quantities than usual, with ! the usual midwinter dullness. requests for prompt shipment, and liberal Bank deposits continue on the increase, a re-orders are coming in from most sections. A ! condition that is not confined to any particular larger acreage of ground has been turned than j financial center, but is the result of returns last year, and preparations for increased crops i from the large volume of domestic and foreign are well under way. There is a jgood demand j business. The steadying influence of fairer for fertilizers at fairly profitable prices. Diinterest rates is now being felt by the banks versification of crops is being systematically and there is less cause for complaint than pursued and the production of home supplies ! prevailed some time ago. The Heard National is being given earnest consideration and effi- j Bank of Jacksonville, Fla., was closed on cient attention. January 16, by order of its directors. It is The lumber trade, which is probably the only | stated that depositors will ultimately be paid line continuing to show depression, is looking I in full and that losses will fall principally upon up, prices indicating an improvement and the j stockholders. demands being better, shipments, however, be- | As estimated b}^ the United States Departing somewhat restricted owing to car shortage, j ment of.Agriculture, as of December 1, 1916, Jobbing and retailing in all lines show some ! the total value of all crops (which does not recession as usual from the extreme of Christ- j include live-stock products) for 1915 and 1916 mas trade, but are still in healthy volume, j for the States in the Sixth District was as Prices, particularly of materials, are regarded j follows: as dangerously high and buyers are cautious, j The canners of the district report that goods in 1916 1915 their line are cleaned up and they are looking for a ready market for this year's products. Alabama. 8158,469,000 §158,260,000 Building continues in unusual volume for F G l e o o r r i g d i a a . . . . , 3 6 4 0 8, , 9 4 2 9 4 5 , , 0 0 0 0 0 0 23 4 4 3 , , 1 1 4 2 7 2 , , 0 0 0 0 0 0 Louisiana 182)845,000 112,940,000 this season of the year, and there are no evi- Mississippi 190,674,000 150,327,000 dences yet of lower prices for materials, which Tennessee j 220,888,000 145,977,000 are still scarce. Cotton is still being held to some extent in As indicated, all these States show heavy the district, but will undoubtedly be disposed gains with the exception of Alabama, where, of at good prices before the next crop becomes notwithstanding the heavy floods and the presavailable. ence of boll weevil, the value of the 1916 crops Prohibition, which became effective in Vir- is slightly more than that of the 1915 crops. ginia on November 1, 1916, does not appear to Reports from Florida put the estimate of the have affected business adversely and the new | season's fruit crops at a slightly larger figure condition of things has been accepted in good |than the previous season. The rice crop of spirit and with veiy little friction. j the district is estimated to be worth $11,000,000 There is throughout the district a tone of more than that of 1915. The lumber trade conservative optimism, and apparently well- has made considerable recovery from the holidirected efforts toward development and im- day quiet. Hardwoods are advancing in price, Drovement in all lines of endeavor are on foot. Ithe demand is good and movement active. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FEBRUARY 1,1917. FEDERAL RESERVE BULLETIN. 127 Naval stores remain steady, demand good and Industrial conditions are excellent over the prices slightly advanced. ] entire district. Labor is fully employed at In the wholesale dry goods market jobbers | good wages, and the production of all manuare beginning to make large shipments of spring facturing concerns is sure to create new recmerchandise. Salesmen are active in all spring ords for 1917. and summer lines and report liberal orders. Biloxi reports that the Gulf Coast industries The outlook is very promising. are doing well and that the sea-food packing Flour business has been fairly active and houses are well supplied with orders. The mills anticipate a constant steady demand winter visitors this season are more numerous the balance of the season, based on the fact j and demand more luxurious accommodations that owing to high prices southern flour dealers j than heretofore.' are carrying minimum stocks and order fre- Louisiana has fared well with a total farm quently and constantly rather than on a output of $182,845,000, as compared with speculative basis. Higher-priced flour is pre- \ $112,940,000 for 1915. Its farmers realized dieted. $69,905,000 more than during the previous The demand for tobacco has been exceed- year, a 64 per cent" increase. In this respect ingly strong, and it is estimated that 90 per Louisiana has fared better than any other State. cent of the crop has been sold at prices the Not only did it enjoy the advantages of higher highest since 1897. The percentage of leaf prices, but larger crops also, particularly such tobacco is much larger than in usual crops, staples as cotton, cane, and rice. With this being probably 75. Present prices are from stimulus, it is natural that great encourage- 75 to 100 per cent higher than quotations of j ment should be held out to the farmers for the 18 months ago. | next .year; and the promise is for still greater The mining industry in the Birmingham • acreage under cultivation. district is now regarded as satisfactory to the The efforts of agricultural experts, colleges, operators. The car shortage is greatly les- | and others are directed to prevent the farmers sened. Consumers are in the market for ! from returning to the fallacy of the past of raisrenewal of contracts that expire in the main ! ing a single crop because prices have been high, on July 1, the contract period. There is a j and thus by overproduction destroying or great demand for all miners and mine laborers, | checking the growth in diversified farming so not only in coal mining but in ore, limestone, ! marked during the year, and quarries. Some laborers are still leaving j the district for northern labor markets. Pros- ' DISTRICT NO. 7-CHICAGO. pects for profits in the coal industry are better, Reports from bankers, manufacturers, and than for many years. merchants] all give evidence of great business The New Orleans branch of the Federal Re- activity, and annual reports which have come serve Bank of Atlanta reports: to hand show the favorable results of last year's Land values throughout this district have operations. The banks throughout the disrisen and an unusual interest is manifested re- trict have increased deposits and heavy regarding agriculture and stock raising. In the serves, and the investment of these funds is a last 30 days more buyers have come to the serious problem, since in many instances the front than for the past five years, all of which local demand is far short of the supply. Intends toward an increase of farm products for terest rates continue low, and some of the counthe future and a corresponding revival of busi- try banks, which ordinarily have a good outlet ness generally. at home for their money, are buying brokers- Credit men report more satisfactory collec- paper in spite of its low return. tions and the paying up of long-standing Bond houses are enjoying a good volume of balances. sales, and authorities in this line are of the Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

128 FEDERAL RESERVE BULLETIN. FEBRUARY 1,1917. opinion that the investor is in a strong position such lines as building, etc. Wages are generand is only waiting for some definite assurance ally in accordance with the value of the servas to the future before making commitments. ices and this has brought about a somewhat One feature militating against a strong demand better feeling and less discontent than existed for local securities is the large volume of foreign several months ago. Reports from manu- Government obligations offered in this market facturers and others indicate that collections at attractive, interest rates. First-mortgage in this district are satisfactory, the different farm loans are paying the lowest rate of interest localities naturally showing varying degrees of in their history, and the amount loaned per promptness in meeting their obligations. acre is said to be the highest, caused by the Throughout Illinois and Indiana money is entry into this field of the insurance companies easy and payments satisfactory. Collections and Eastern banks and the call from investors in Iowa, Michigan, and Wisconsin are generally for a good home security. prompt, but certain communities are suffering The railroad situation is one of the most from inability to dispose of their crops, due to serious problems before the district and the car car shortage, while others are overstocked in shortage has not been alleviated to any great some lines. These conditions, however, are extent. Comments on this subject come in not general, and the situation on the whole is from all sides, and the coal industry claims that satisfactory. it is unable to make deliveries owing to in- The steel companies are rushed with work, ability to secure cars to move the coal from and the manufacturers dependent. upon them the mines. In certain sections the farmers find difficulty in securing prompt deliveries in have been unable to secure cars to ship grain spite of the substantial prices paid. The high to market, and the delay has brought about cost of raw materials is still looked upon as a slowness in collections where the payments possible deterrent to future buying, but this were dependent upon the marketing of the has not made itself felt in the results to date. crop. Dry goods distributors and merchants look The grain markets, with the exception of a forward to a good spring business, and this speculative flurry, have been strong. The year's sales to date are considerably ahead of crop in this country was of only fair volume, last year. This, however, is offset by the fact and there is some indication that the farmers that heavier stocks are carried, in some inare holding back grain for-speculative pur- stances 15 to 30 per cent larger than in Januposes. Another element tending to support ary, 1916. This is an element which will bear the market is the Argentine grain situation watching. Wool is strong in price, but there and the heavy requirements from abroad. are some reactionary signs. Mills are running Live stock has come to market in a liberal way to full capacity, and it is expected the high during the past month, realizing high prices. prices and active business will continue for The cattle are generally in good condition but some time to come. The lumber industry is the hogs are frequently light in weight. It is quiet, and those concerns dependent for their reported that the supply of animals through- supply upon oversea shipments are naturally out the country is showing an increase, the suffering from lack of available bottoms. domestic demand for packers7 products is fair, Pianos are in good demand considering the and the export demand good. By-products time of year. Leather prices are not quite as are well taken at substantial prices. strong as last month, with the exception of All labor is well employed at this time and, sole leather. Shoe factories are running full while a shortage is being felt, it is believed by time with favorable prospects. many that the trouble will be more acute in Clearings in Chicago for the first 20 days of the spring when those who are now working January were $1,402,000,000, being $397,inside resume their open-air employment in 000,000 more than for the corresponding 20 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FEBRUARY 1,1917, FEDEKAL RESERVE BULLETIN. 129 days in January, 1916. Clearings reported by In several instances it is reported that mer- 19 cities in the district outside of Chicago chants are buying well ahead of their actual amounted to $283,000,000 for the first 15 days needs and are being allowed to do so, but such of January, 1917, as compared with $203,- does not seem to be the general rule in this dis- 000,000 for the first 15 days of January, 1916. trict. The general attitude seems to be con- Deposits in 8 central reserve city member servative on the part of both the seller and banks in Chicago were $738,000,000 at the the buyer, and the general public, while buying close of business January 22, 1917, and loans freely, is not reckless, but is beginning to think were $488,000,000. Deposits show an in- of price before buying. crease of approximately $36,000,000 and loans Throughout all sections of this district rean increase of approximately $6,000,000 over ports just received indicate that the last quarlast month. ter of 1916 was record breaking. Those who report say uniformly that agricultural and DISTRICT NO. 8—ST. LOUIS. other conditions are good, and that the present It is the general rule that after the holiday prospect is that there will be a good business buying business pauses for a rest. But this throughout all this year, though as large a busiyear the dullness following the Christmas sea- ness as was done during 1916 does not seem to son has not been pronounced. This, too, in be anticipated. spite of the fact that this district did a record- According to the report of the St. Louis breaking seasonal business. National Stock Yards, during December there Prices on the whole are still increasing, but was a considerable increase in the receipts and seem at last to have reached a point where shipments of live stock over the corresponding buyers are thinking carefully over their pur- month of 1915, with the exception of sheep, for chases. In the latter part of last year the which the market has been quiet. public desired the best and seemed not to think Building operations in this district have not of price. There are now indications to the been so active during the past 30 days, and effect that while the public is still satisfying its j reports would indicate that the activity is desires without much hesitation, at the same i even somewhat less than it was this time a time, before buying, it considers whether a | year ago. cheaper article will not serve the same purpose I There have been substantial increases in the as the more expensive one. amounts of postal receipts for December, 1916, It is reported that retailers are not hesitating over the corresponding month of the previous to buy to care for their estimated ordinary year in all the principal cities of this district. demands, but they are conservative as to this Money continues plentiful. In St. Louis estimate and, as a rule, not buying more. It the rate to customers, as a rule, ranges from would seem that speculative buying has prac- 4 to 4J per cent, and in other sections of the tically been eliminated from this district. district it is somewhat higher. A number of our large manufacturers and wholesalers are not urging customers to buy DISTRICT NO. 9—MINNEAPOLIS. goods, but are rather discouraging the buying Over the district, as a whole, business is unof more goods than the customer is certain dergoing the usual midwinter lull. While the of selling. One large manufacturer explainedI situation is favorable, trade is quiet. that his concern did not want to have its cus- ! Serious disturbances occurred in the northtomers burdened with its product at the pre- I ern lumber camps in Minnesota during the vailing high prices, with the possibility of their i early part of the month and were overcome having to suffer a loss later on. Some houses with difficulty. Quiet again prevails and timare not selling for delivery at a date later than ber concerns are able to go ahead at their May. scattered camps, many oft which were closed Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

130 EEDEKAL EESERVE BULLETIN. FEBRUARY 1,1917. during the disturbances because of the in- ments. Interest rates remain practically untimidation of men and trouble caused by wan- changed, but competition is close for shortdering bands of agitators. time loans of certain liquidity. All reports Industrial operations are continuing on continue to show increases in bank clearings, about the same scale as a month ago. Labor deposits, and post-office receipts. Thirteen is fully employed, and most concerns are en- important cities in the district show an average joying a brisk business. increase in clearings of 44.5 per cent for the Clearings show some small fluctuation, but year 1916 over the year 1915. Abstracts of remain approximately the same. Collections reports now being received from the banking are uniformly good. Banks at country points departments of States within this district report a fairly good demand, with rates un- show deposit increases in State banks running changed. At the urban centers the demand is into huge figures, and there is every indication somewhat lighter, with rates, if anything, a that these increases in all banks will continue trifle easier. to expand. There has been some slight improvement in Agriculture.—Every State in whole or in the car situation, but the shortage is still se- part within this district shows a noticeable invere, and is hampering many lines of business. crease in the total estimated value of the Mining operations for the coming season 13 principal crops for the year 1916 over 1915, will be very active. Northern Minnesota con- Varying reports are being received with cerns are holding their forces together as well regard to the condition of the winter wheat, as they can by employing men on stripping but the promise is not far from normal. In work and other winter operations in anticipa- some sections of the district heavy snows have tion of a record season. In the copper-mining fallen and will be of great value, but in districts of northern Michigan and Montana other localities precipitation has been deficient production is still maintaining record figures, and some complaints of damage have been and the mines expect during 1917 to make a received. large increase over the remarkable figures of Live stock.—General conditions, in spite of last year. the scarcity and high price of feed, are said Cold weather and storms have interfered with to be favorable for the live-stock feeder. traffic to some extent. Eecord high prices for cattle and scarcity of The amount of incoming wheat at the Min- feed, with attendant increased cost, has stimunesota and Duluth terminals is comparatively lated the movement of short-fed stock. Prossmall. Deliveries at country points are very perity in western sheep circles has received light on account of the condition of the high- an additional impetus in the earlier contracting ways. Prices still continue to hold a very of wool at unprecedented prices. There are high level. some indications of an increased demand for January snows have covered the greater loans on live stock, and stockmen of this section part of the grain territory and are an addi- are securing a greater portion of their accomtional and valuable guaranty of proper modations from local banks than for many moisture conditions in the spring. I years, which condition may be attributed, in part at least, to the provisions of the Federal DISTRICT NO. 10—KANSAS CITY. | Reserve Act permitting the discount of six Conservatism in banking is apparent from months paper secured by live stock. the healthy reserves maintained by the major- Mining.—Colorado's metal output for 1916 ity of institutions. While this may, in part, sets a new record for the industry in that State. be due to lack of demand, there is unques- The value of five metals only, i. e., gold, tionably a feeling that the uncertainty of the silver, copper, lead, and spelter, exceeded the future demands a VJose scrutiny of invest- value of 1915 by more than 25 per cent, Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FEBRUARY 1,1917. FEDERAL RESERVE BULLETIN. 131 I although the past season was not favorable to per cent, causing earlier orders to avoid future the production of gold, the cost of mining per price increases. ounce, placers excepted, being rated at the The gradual shifting of the automobile busihighest in the annals of the industry. Reliable ness from a summer business to an all-yearfigures show that the value of zinc, lead, and round line is more and more apparent, the calamine ores produced in the Missouri-Kansas- month of December having been almost as Okiahoma district for 1918 exceeds the total profitable as the month of June. Local auof 1915 by 34 per cent. The new year opens thorities declare that §50,000,000 worth of auspiciously for continued prosperity in the motor cars have been distributed in this termining industry with active work in the ritory during 1916. developing of prospects. Cement dealers report a ver^y gratifying in- Oil.—Rapid advances in the price of crude crease of 15 per cent in 1916 over 1915, with oil in the Kansas and Oklahoma fields have the outlook bright. continued, the quotation now standing at The wholesale furniture business showed an $1.70 per barrel with expectation of further increase of 20 per cent in 1916 over 1915, an increases. The present price is the highest average of 15 per cent of which was probably ever posted in these fields. Owing to this in- due to advance in prices, and approximately 5 crease much new work is being planned, but is per cent to increase in the actual volume of seriously delayed by lack of water for drilling furniture sold. Losses are about one-half what purposes. Leasing is exceedingly active. they were in 1915. Manufacturing. —Although the manufactur- The mail-order business reports one of the ing industry in this district is in its infancy and smoothest operating years in its history, havdoes not compare in volume with that of the ing at no time been hindered through the geneastern districts, the past year has shown a eral labor shortage. Salaries have been insubstantial growth, not onty in the volume of creased not less than 10 per cent, in addition to business turned out, but in the construction a general distribution of extra compensation of new factories and increased facilities to meet because of increased cost of living. Factory the growing demands of trade. holdings show an increase of from 35 per cent to 38 per cent in all lines, despite unstable and Wholesale and retail.—The completion of indifficult merchandizing conditions. ventories has accentuated the unprecedented volume of mercantile business transacted dur- Flour mills report a restriction of trade in ing 1916. The usual post-holiday quiet has both domestic and export channels. Local been less marked than in previous years. Col- mills are not selling anywhere near the volume lections continue uncommonly good. of flour they are turning out. Business in dry goods and garment lines has The average percentage of increase in values of building permits issued in eight important been of good volume, slowness of business due cities in this district for the year 1916 over the to previous mild weather having since been offyear 1915 was 24.4 per cent. set by the demand produced through generally Labor.—Complaints of labor shortage a e lower temperatures. now uncommon, in fact, in the larger cities em- Clothiers have enjoyed a most successful ployment bureaus are unable to supply jobs for year. Customers are demanding better merall applicants, but this is probably the natural chandise, allowing good profits in spite of inresult of the season and of the usual influx to creased costs. the cities during the winter months. There In implements, jobbers declare that their has been some threatened disturbance among suggestions for early shipments have met with the laborers in the coal fields in Colorado, but a ready response from the trade. The main this is purely local in character. Labor concomplaint is in getting factory shipments. The ditions may be said to be better than normal new year started with general advances of 10 for this season of the year. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

132 FEDERAL BESERVE BULLETIN. FEBRUARY 1,1917. DISTRICT NO. 11—DALLAS. Clearings at the principal cities continue at The new year has brought the usual lull in record figures and for the month of December, business which follows the holiday season, and 1916, were $236,762,578, while for the same this condition will probably continue for some period of last year they were $195,718,070, or 60 or 90 days, or until the spring trade opens. an increase of $41,044,508, or 21 per cent. This dullness has been less marked than in For the year 1916 the aggregate amount of previous years. Reports from all sections of clearings in the cities reporting was $2,190,the district confirm the earlier predictions of 754,725, and for the year 1915 the aggregate an unprecedented holiday trade. The year just was $1,784,204,441, or an increase of $406,550,closed established new records in the business 284, or 23 per cent. history of this section. The demand for lumber and building ma- Retail trade has been made rather active by terials has been light. Dealers are taking stock the inauguration by merchants of special clear- and closing their books on last year's business. ance sales. Wholesalers and jobbers are pre- Collections are reported good. The car situaparing to start their salesmen and are stocking tion in this line is much improved. Manufacup for the coming season. Collections in all turers of brick, tile, and similar building malines continue good. terials advise that orders are being booked for Considering the midwinter season, building 1917 delivery and that they anticipate a good operations are more than holding their own and trade when the building season opens in about demand for materials is all that could be ex- 60 days. Building permits issued in Decempected. The car situation, from reports re- ber, 1916, in the cities reporting—Austin, Dalceived, is considerably improved over 30 days las, Galveston, Houston, San Antonio, and ago, though restrictions are still placed on Waco—aggregate in amount $2,072,598, and shipments to northern and eastern territory. for a year ago the aggregate was $1,539,394, or The recent heavy snow over most of the dis- an increase of $533,204 or 35 per cent. The trict brought an end to a drought of some 60 aggregate amount of building permits issued in days7 duration. The snow was unusually the named cities in 1916 was $12,837,100, an heavy in Texas and insures a fine season for the increase of $1,792,539, or 16 per cent over 1915. preparation of the spring crops. From the ex- Post-office receipts for the cities reporting— treme southwestern portion of the district, Austin, Dallas, El Paso, Fort Worth, Galveston, where farming is engaged in practically the Houston, Shreveport, and Waco—for the year round, the winter truck crops are reported month of December, 1916, aggregate $384,638, to be in good condition. Carload shipments of and for a similar period of 1915 the sum of cabbage are being made from the Brownsville $329,236, or an increase of $55,402, or 17 per section, and within the next 30 days it is ex- cent. For the year 1916 the post-office repected that the crop movement will be well ceipts of the listed cities aggregated the sum of under way. $3,540,355, while for 1915 the aggregate was Some decrease in bank deposits is noted by $3,047,102, showing an increase in the former the reports made on the comptroller's call of year's business of $493,233, or 16 per cent. December 27, as compared with the November Exports from the port of Galveston for De- 17 call. Otherwise, the banking situation has cember, 1916, were $40,488,984, while for Debeen about the same as 30 days ago. Demand cember, 1915, the total was $17,796,672, showis light and rates easy. There seems to be a ing an increase of $22,692,312, or 127 per cent. disposition on the part of most bankers to This increase was made up principally of shipmaintain their strong position and proceed ments of cotton to England, France, Italy, with some caution, to await conditions that Spain, and other foreign countries. Exports may develop after the first few months of the to Mexico also showed a heavy increase over year. a year ago. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

'FEBRUARY 1,1917. FEDERAL RESERVE BULLETIN. 133 Rains and snow over the cattle-raising sec- sequential. Several increases in wages rangtion of the district have made range conditions ing from 10 per cent to 50 cents per day in good. The dry weather had caused grass to be different branches of labor over the district short over a large part of the range territory have served to satisfy workmen and keep and necessitated considerable feeding by cattle- down strikes and lockouts. There is no evimen. Our reports are that there have been dence but that the new year will be equally as few losses on account of cold weather and that prosperous as the year just closed. In any cattle have thus far gone through the winter event, business men in all lines of endeavor well. Reports from Arizona especially are anticipate this condition and a genuine tone of that the cattle industry in that section is un- optimism prevails in all lines. usually prosperous. Prices are good for anything marketable, and there is demand for DISTRICT NO. 12—SAN FRANCISCO. steers for spring delivery at advanced prices. No material change is apparent in the busi- With the recent announcement by the Gov- ness of this district during the last 30 days. ernment of the designation of Fort Sam Hous- Retail trade shows reaction from the activity ton, San Antonio, as a remount station and the of the holidays. The outlook is regarded as concentration of several thousand head of promising. horses and mules for Army use, there should be Money is easy and there is but small demand an excellent demand for this class of stock. for rediscounts at this bank. While this situa- The advance in the prices of crude petroleum tion is not without its accompanying hazard of has stimulated business in the oil fields, and possible over-expansion, little evidence of such conditions are reported satisfactory. The a condition is found. movement of refined oil from Port Arthur in It is reported that a new line of ships is to be December was heavier than in the month pre- put in service from Seattle to the Orient, convious and has contributed to make an unusually sisting of four vessels to be built in Yokohama by profitable season at that port. The scarcity Norwegian interests. of coal continues to be felt and has caused a The Southern Pacific is reported as having heavy advance in prices. Reports from Okla- taken over the railroad now building from homa are that a few of the mines have opened Yuma, Ariz., to San Diego, thus entering terriand it is believed that the remainder will soon tory hitherto served only by the Santa Fe. do so. It is expected that the controversy over This should be of considerable advantage both the wage situation will soon be settled and nor- to the Imperial Valley, through which the road mal conditions in the mining districts resumed. passes, as well as to Arizona and San Diego. It Failures over the district from December 16, is rumored that the Hill interests have secured 1916, to January 15, 1917, were in number 45, an entrance into San Francisco over the Newith liabilities aggregating $433,520, and for a vada-California-Oregon lino. similar period a year ago aggregated in number I .Conditions in the lumbering industry are 35, and in liabilities $436,998, showing an in- I reported as growing more favorable. crease in number of 10, but a decrease inI Bank clearings for 19 principal cities in this amount of $3,778, or less than 1 per cent i district in December, 1916, show an increase of decrease in amount of liabilities. | 32 per cent over those of December, 1915. The employment of labor is normal in all Spokane's percentage of increase was 45; branches and the outlook is quite satisfactory Seattle, 39; and San Francisco, 37. Clearings for the first half of 1917, especially in the build-| for the year of 1916 show a gain of 26 per cent ing trades. There have been no labor disturb- i over those of 1915. Between December 31, ances in recent months and the number of i 1915, and the last comptroller's call, December strikes and laborers involved has been incon- 27, 1916, deposits of national banks in the Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

134 FEDERAL RESERVE BULLETIN. FEBRUARY 1,1917. 7 reserve cities of this district increased 24 this crop will be much larger than those from per cent, while loans and investments increased last year's crop; 13,000 cars already shipped 26 per cent. Building permits for the same 19 have averaged. $700 per car. cities in 1916 show an increase of 20 per cent Stocks of canned goods in first hands are over 1915. almost sold out, and that which remains is soil- California is one of the few States which have ing at very high prices. It is thought that not adopted the uniform negotiable-instru- there will be practically no carry-over to the ments law. This has been proposed in the 1917 season. legislature now in session. The total fruit crop of Oregon in 1916 is A similar law is already in force in every reported as yielding $9,000,000 net to the other State of this district. growers, which is $1,000,000 more than in The gap between production, and shipments any previous year. Two new industries have of petroleum reached the maximum for the year recently been introduced into Oregon—the in December, with a daily production of growing of flax and of cranberries. The cran- 255,983 barrels and daily shipments of 316,563 berry crop in 1916 amounted to only 2,000 barbarrels, a difference or withdrawal from stored rels, netting the grower $8 per barrel, but the stocks of 60,580 barrels daily. The shipments crop of the coming year promises to be larger. record a new high level. Total crude oil stocks Live-stock conditions continue to be most on December 31, 1916, were 44,036,190 barrels, favorable. Nevada reports the highest prices showing a reduction of 13,110,861 barrels ever paid for lambs, averaging $5 each for the during the year. | 600,000 lambs sold this year. Exports from the Pacific coast ports during The salmon catch of 1916 for the Pacific the month of December, 1916, show an increase coast of the United States and Alaska is reof 75 per cent over those of December, 1915, ported as 7,121,000 cases of 48 one-pound cans. and the imports for the same mouth this year This is above the average, though below the show an increase of 20 per cent over the cor 1915 catch. The catch was heavy in Alaska, responding month last year. but below normal in the Puget Sound and the The bean, crop in California for 1916 is esti- Columbia River districts. The prices for salmated at 163,000 tons, with the prospect.of a mon have reached the highest point in years, much larger crop in 1917. Final figures for the value of the 1916 pack being estimated at the 1916 prune crop of the Pacific coast place $40,000,000. it at 93,000 tons, valued at $10,000,000. The value of the mineral production in the The crop of rice (a new product in Califor- district for 1916 exceeded $420,000,000—copnia) is now estimated at 1,250,000 sacks from per about $285,000,000; petroleum, $49,000,000; 60,000 acres as against an estimate of 1,800,000 gold, $40,000,000; and silver, $23,000,000., sacks earlier in the season. This change is due Ten mines in Arizona paid $34,000,000 in diviin part to the failure of a considerable portion | dends during the past year, and the mines of of the late plantings to mature. Sales have five western States paid over $100,000,000 in been made at about SI.75 per 100 pounds. dividends. Alaska's mineral production in The apple crop of the Pacific Northwest is 1916 was over $50,000,000. approximately 19,000 cars. The returns from Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FEBRUARY 1,1917. FEDERAL EESEKVE BULLETIN. 135 DISTRIBUTION OF DISCOUNTED PAPER of the Richmond and Atlanta I banks, including the New Orleans branch. ;The total of BY CLASSES, SIZES, AND MATURITIES. two-name paper discounted during the past Commercial paper discounted by the Fedyear by all the 12 banks was over five millions, eral "Reserve Banks during December, 1916, over 60 per "cent of which was ^handled ;by the totaled §63,716,300, "by far the largest monthly two southern banks named, and over 20 per total reported since the opening of the banks. cent by the St. Louis and Boston banks. Considerable increases in discount operations Only three banks report the discount during are shown for all the banks except Kansas City, the month of commodity paper, the total for Dallas, and San Francisco, though the princi- December being about 42 per cent below the pal increases are shown for the three eastern monthly average for the year. It is also noseaboard banks, where the immediate effects table that the aggregate discounts of commodity of the late disturbance in the call money market paper for the four months since September 1, were chiefly felt and where some of the leading $6,421,000, were about 38 per cent less than local member banks for the first time availed the amount discounted during the correspondthemselves of rediscount privileges with their ing period in 1915. Federal Keserve Banks. Of the total amount The number of bills discounted during the of paper discounted during the month more month, 4,601, was largely in excess of the than 70 per cent represents the share of the three eastern banks, as against over 60 per cent number shown for each of the two last months, for November, 1916, and less than 3 per cent while the average size of the paper discounted, for December the year before. Discount oper- about $13,800, was far in excess of like monthly ations of the three southern banks, which re- averages heretofore recorded. Over 82 per ported over 62 per cent of the December, 1915, cent of the amount of bills discounted during total, were about 10 per cent of the total re- the month is represented by largest-size bills ported for the month under discussion. (of over $10,000 each), these percentages being much larger for the New York, Cleveland, Discounts of the Federal Reserve Banks for Philadelphia, and Boston banks. About 9 per the year 1916 totaled $207,870,800, compared cent of the discounts for the month was mewith $161,353,000 for the year 1915. dium-sized paper (in denomination of over Of the total discounts for the month, $29,- $1,000 to $5,000) as against 17 per cent the 892,400 is represented by member banks' colmonth before and nearly 50 per cent in Delateral notes secured by commercial paper; cember, 1915. Small notes (in amounts up to $1,085,600 by trade acceptances (two-name $250) constituted over 12 per cent of the total paper), and $817,000 by commodity paper. number, though only slightly above 0.1 per The total of these three classes of paper, discent of the amount of bills discounted during counted at preferential, i. e., lower than ordithe month. The Philadelphia bank reports by nary rates, is $31,795,000, or about 50 per cent far the largest number of these small bills, of the total discounts for the month. All the mainly trade acceptances. banks, except San Francisco, report advances upon member banks7 collateral notes, though Over 36 per cent of the bills discounted durnearly 75 per cent of the total of nearly ing December was 10-day paper, i. e., matur- $30,000,000 was advanced mainly to local city ing within 10 day's from the date of discount members by the Philadelphia, New York, and by the Federal Reserve Banks, these shares Chicago banks. being much larger in the case of the Boston, Discounts for the month of trade acceptances Philadelphia, and Richmond banks. The share for the first time exceeded $1,000,000, nearly of 30-day paper was 54 per cent; that of 60- 80 per cent representing the combined share day paper, 4.3 per cent; and that of 90-clay Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

136 FEDERAL RESERVE BULLETIN. FEBRUARY 1,191T.. paper, 4.7 per cent. December discounts of ! cember 30, 1915, is represented by the holdi ngs agricultural and live-stock paper maturing i of the three southern banks. after 90 days from date of rediscount with the I Of the 7,627 member banks reported at the Federal Reserve Bank (6-month paper) were end of the month only 314, or slightly over 4 only $444,700, compared with a monthly aver- per cent, availed themselves of their rediscount age for the present year of over 1.4 millions of privileges during December. Considerable inthis class of discounts. creases in the number of accommodated mem- On the last Friday of the month the banks ber banks are shown for the Boston, New held a total of $30,196,700 of discounted paper, York, and Philadelphia districts, where a numas against $20,499,600 about the end of No-i ber of the leading city banks initiated redisvember, and $32,371,600 on the corresponding | count operations with their Federal Reserve date in 1915. About 22 per cent of the total j Banks during the early part of the month discounts held, as against 63 per cent on De- I under discussion. Commercial paper, exclusive of bankers7 acceptances, discounted by each Federal Reserve Bank during the month of December, 1916, distributed by sizes. NUMBER OF PIECES AND AMOUNTS. [In thousands of dollars.] 1 To §100. Over S260Over 5500 0'ver §1,000 Over 82,500 Over $5,000 Over Total. Per cent. 'S250. to 81,000. to §2,500. ! toS5,000. to S10,000. 810,000. Bants. rs 1 ill 1 • 1-2 © s - ,j Boston 0.7 4.8 401 16.1 30. Oi 38 75.5! 2911,418.2| 189,1,821.8 245 11,443.0, 87614,810.1 19.01 23.2.516,900- New York 1.6 1G| 6.5 8.41 33 69.5| 2611,240.0l 9911,053.7 14015,598.3 57017,978.0 12.41 28.2; 31,500 Philadelphia 9.6 65 21.1 50.2j 91 161.5! 1021 458.61 284.3 4810,927.8! 61011,917.7 13.3 18.7! 19,500 Cleveland 4.5 211 8.6 14.l! 19 38.6! 13 51.6 22! 205.2! 3,327.8! 172 3,653.8 3.7! 5.71 21,200' Richmond ,711.. 2 128 49.7 87. 6| 133 225.5'1 94 3S3.9 34| 250.0 2,843.0,1607 3.852.0 6.1 6,300 Atlanta (including New Orleans branch) 7.0 631 24.5 53.3| 90 160.9; 91 367.7 356.1 1,596.71 433 2.566.1 9.4; 4.0 5,900 Chicago 6612.1! 99 38.1 78.6 102 176.2; 52 213.8 190.2| 4,997.5. 477 5,706.9 10.4 9.0 11,900 St. Louis 4.0: 16.7 33.71 32 48.61 17 70.0 198.5! 882.7| 200 1,254.2 4.4! 2.0! 6,200 Minneapolis 5.0"! 43 17. 2i 63.11 111 162.5! 52 210.9 295. 5 737.2 366 1,491.5 7.9j 2.3 4,100' Kansas City 3.7! 17.7. 15 24.3, 3 10.2| 5.1 85. 8j 62 147.8 •2l 2,,4 0.0. Dallas * .1 3.5! 431 18.3 43.21 47 78.2! 14 51.9 24.5 70.0i 192 289.7 4.2 .5 4,100' San Francisco 7! 51 1.6 7.2.! 12 20.0. 3 12.2| 6. 36 48.5 .8 .1" 1,300 Total ! 210 8.3 354 65.0 568!222.1 633 487. l| 723jl, 241.3| 993 4,492.0j 508J4,691.7j 61252,508.8;4,601 63,716.3 100.0'100.0 13,80C i I Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FEBRUARY 1,1917. FEDERAL RESERVE BULLETIN. 137 Commercial paper, exclusive of open-market purchases, discounted during December by each Federal Reserve Bank, distributed by States and maturities as of date of discount. [In thousands of dollars.] Number Number ]Maturities Total 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 . 11 Fr d to o a m y 6 s 0 . 31 Fr d t o o a m y 9 s 0 . 61 90 A d ft a e y r s. c c i o a u d l n i p s t a - e p d e . r District No. 1—Boston: Connecticut . . .... 55 3 75.0 320.0 21.9 416.9 Maine 67 Massachusetts . 156 29 7,239.3 6,876.1 101.3 114.0 14,330.7 New Hampshire 56 7.4 15.0 22.4 Rhode Island 17 Vermont 48 2 22.1 13.6 5.0 40.1 Total 399 35 7,336.4 7,216.5 121.3 135.9 14,810.1 District No. 2—New York: = == Connecticut 15 1 23.0 23.0 New Jersey. . .... 130 4 5.0 636.7 2.4 1.9 646.0 New York 480 18 5,544.8 10,495.0 517.2 752.0 17,309.0 Total 625 23 5,572.8 11,131.7 519.6 753.9 17,978.0 District No. 3—Philadelphia: Delaware 24 New Jersey. .. . . 72 9 83.3 380.7 262.8 3i.7 758 5 Pennsylvania 535 19 5,337.8 5,744.6 53.7 16.8 6.3 11,159.2 Total 631 28 5,421.1 6,125.3 316.5 48.5 6.3 11,917.7 District No. 4—Cleveland: Kentucky. . 68 1 1.4 1.4 Ohio 373 7 1,633.8 1,911.8 52.2 9.6 1.6 3,639.0 299 1 2.1 7.7 3.6 13.4 West Virginia 13 :::::::::: Total 753 9 1,633.8 1,943.9 61.3 13.2 1.6 3,653.8 District No. 5—Richmond: District of Columbia 15 3 96.5 244 5 153.4 494 4 Maryland 96 3 16.8 12.3 12.3 41.4 North Carolina 81 16 38.5 157.5 126.8 201.5 1.3 525.6 South Carolina. 79 14 200.0 417.3 120.9 174.4 2.2 914 8 Virginia 146 4 1,860.0 1.7 12.1 1,873.8 West Virginia 103 1 2.0 2.0 Total 520 41 2,098.5 690.1 506.2 553.7 3.5 3,852.0 District No. 6—Atlanta: Alabama . ... 93 75.8 66.6 127.0 167.5 436.9 F G l e o o r r i g d i a a . . . . . 1 5 0 5 9 1 1 6 2S 3 1 3 1 3 6 . . 8 1 1 8 1 2 1 . . 4 4 2 9 4 0 2 . . 3 0 3 65 1 8 7 . . 2 8 Louisiana . 22 3 500.0 8.8 464.2 973.0 Mississippi . . 18 1 15.0 15.0 Tennessee 92 14 4.5 22.7 47.5 80.9 9.6 165.2 Total 389 54 80.3 1,054.2 377.1 1,044.9 9.6 2,566.1 District No. 7—Chicago: Illinois 316 13 209.0 4.810.1 75.3 58.5 4* 5,157.2 195 7 5.0 1.0 2.3 19.2 26.9 54.4 Iowa 353 22 8.0 269.7 64.7 91.8 49.9 484.1 Michigan 76 1 1.0 10 2 11 2 Wisconsin 52 0 Total 992 43 222.0 5,081.8 152.5 169.5 81.1 5,706.9 District No. 8-St. Louis: Arkansas 67 2 3.6 2.0 9.3 14 9 Illinois 157 5 6.0 2.9 34.7 43.6 Indiana 61 Kentucky . .. .. . 67 3 27.2 3.5 30 7 MississiDDi 17 1 2 5 g 8 7 12 1 Missouri . ... . 81 6 520.0 1.2 8.6 19.1 ie.i 565.0 Tennessee 20 2 128.3 271.2 153.4 35.0 587.9 Total 470 19 675.5 284.5 167.8 101.0 25.4 1,264.2 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

138 FEDERAL RESERVE BULLETIN. FEBRUARY 1,1917. Commercial paper, exclusive of open-market purchases, discounted during December by each Federal Reserve Bank, distributed by States and maturities as of date of discount—Continued. [In thousands of dollars.] Maturities. Number Number Total Districts and States. m b e a m n o k f 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* it * hi M n F d ro a m !£ 11 Fr c t o o la m y 6 s 0 3 . 1 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 i d n i p s t a - e ' u d e . r ! ; District No. 9—Minneapolis: Michigan 32 : 1 10.0 10.0 20.0 285 18 763.9 415.5 43.7 80.9 1,304.0 Montana . . . .. 78 North Dakota 155 7 25.0 .7 6.0 50.9 82.6 South Dakota 125 5 15.1 25.4 44.4 84.9 Wisconsin 89 Total 764 31 788.9 441.3 85.1 17fi.2 1,491.5 District No. 10—Kansas City: Colorado •.-.-- .. .- . 122 1 50.0 50.0 Kansas . 224 4 .S 1.0 6.3 30.4 38.5 Missouri 54 1 3.4 3.4 Nebraska- . ». .. ........ 193 2 fi. 7 12.9 .5 20.1 New Mexico -. 9 . ..... Oklahoma 305 1 35.8 i 35.8 Wyomin"1 .... 36 Total - . .. 943 9 50.0 36.6 7.7 19.2 34.3 147.8 District No. 11—Dallas: Ari7OIl£L - . ••-•-.---•-.-....----•.----- 6 11 New Mexico 28 33 Texas 542 i$ 20.0 75.6 57.0 32.8 104.9 289.7 Total 620 16 20.0 75.0 57.0 32.8 104.9 289.7 District No. 12—San Francisco: 1 6 California 263 6 15.8 14.8 I 16.1 1.8 48.5 58 "Nevada. .. . .... 10 Oregon .......................... 82 XJ.tah 23 "\Vashincrton • . - 78 i Total 521 6 15.8 14.8 16.1 1.8 48.5 RECAPITULATION. [In thousands of dollars.] Maturities Number Number Total of of banks commercial Districts and cities. m b e a m nk b s e . r m a o cc d o a m te - d. 1 W 0 i d t a h y in s. 1 F d 1 a r o t y o m s . 30 3 F d 1 a r t o y o m s . 60 6 F d 1 a r t o y o m s . 90 90 A d ft a e y r s. dis p c a o p u e n r ted. Per cent. n 399 35 7,336.4 7,216.5 121.3 135.9 14,810 1 23 2 No 2 New York 625 23 5,572.8 11,131.7 519.6 753.9 17,978.0 28 2 No 3 Philadelphia 631 28 5,421.1 6,125.3 316.5 48.5 6.3 11,917.7 18 7 No 4 Cleveland 753 9 1,633.8 1,943.9 61.3 13.2 1.6 3,653.S 5.7 Xo. 5—Richmond 520 41 2,098.5 690.1 506.2 553.7 3.5 3,852.0 6.1 No 6 Atlanta 389 54 80.3 1,054.2 377.1 1,044.9 9.6 2,566.1 4.0 No 7 Chicago. 992 43 222.0 5,081.8 152.5 169.5 81.1 5,706.9 9.0 No 8 St Louis 470 19 675.5 284.5 167.8 101.0 25.4 1,254.2 2 0 Nn Q Minneapolis 764 31 788.9 441.3 85.1 176.2 1,491 5 2 3 Ko. 10—Kansas City 943 9 50.0 36.6 7.7 19.2 34.3 147.8 .2 No 11 Dallas 620 16 20.0 75.0 57.0 32.8 104.9 289.7 .5 No. 12 San Francisco 521 6 15.8 14.8 16.1 1.8 48.5 .1 Total 7,627 314 23,110.4 34,444.3 2,743.1 2,973.8 444.7 63,716.3 Per cent 4.1 36.3 54.0 4.3 4.7 . 7 100.0 Total for January December, 1916 45,850.8 69,196.8 34,425.9 41,578.6 16,818.4 207,870.5 Total for January-December, 1915 26,509.2 57,837.4 57,322.4 19,684.0 161,353.0 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FEBRUARY 1,1917. FEDERAL RESERVE BULLETIN. 189 Member banks1 collateral notes discounted by each Federal Reserve Bank from Sept. 11, 1916, date when first special rate became effective, to Dec. 81, 1916. Total Sep- ! !. T,otal Sep- Federal Reserve Bank. Dec 1 e 91 m 6. ber, D t e o c m em be b r e - r, ' Federal Reserve Bank. j | Dec 1 e 9 m 1 b 6 e . r, \ ! D te ec m e b m e b r- er, 1916. 1916. I Boston $1,227,100 $1,882,100 ! St. Louis §667,500 , 31,302,500 New York 7,484,500 7,939,500 ! Minneapolis 543,200: 1,056,000 Philadelphia 10,366,800 13,644,300 j KansasCity 85,800! 115,800 Cleveland 2,000,000 2,385,000 ! Dallas 57,500 | 287,500 Richmond 2,427,500 3,483,500 | Atlanta (including New Orleans branch) 790,000 1,512,350 | Total I 29,892,400 : 39,026,050 Chicago 4,242,500 5,417,500 ! Trade acceptances discounted by each Federal Reserve Bank from Sept. 12, 1915, date of first discount to Dec. 31, 1916. Federal Reserve Bank. De 1 c 9 . 1 5. 31, 1916. To 1 t 9 a 1 l 6 . for Federal Reserve Bank. T> 1 P 9 P 1 5. <n° December. To 1 t 9 a 1 l G f . or Boston $113,900 $429,200 St. Louis $167,800 859,200 S626,400 New York §5,700 166,600 Minneapolis 41,100 41,700 Philadelphia 8,200 74,800 Kansas City 87,800 ! 190,900 Cleveland 4,900 1,400 175,200 Dallas 160,800 I 2-18,900 Richmond 450,500 218,800 1,507,200 San Francisco 74,200 I 53,400 Atlanta (including New Orleans branch) 1,007,100 643,000 1,591,000 Total.. 1,958,800 1,085,600 5,113,500 Chicago 8) 200 T Commodity paper discounted by each Federal Reserve Bank from Sept 8, 1915, date of first discount to Dec. 31, 1916. Federal Reserve Bank. T De o 1 c 9 t . 1 a 5 l . 3 t 1 o , Dec 1 e 91 m G b . er, T 1 o 9 ta 1 l 6 f . or Federal Reserve Bank. T De o 1 c 9 t . 1 a 5 l . 3 t 1 o , Dec 19 e 1 m 6. ber, To 1 t 9 a 1 l 6 . for Richmond $2,881,400 §237,500 | 87,026,100 | KansasCity $360,000 Atlanta (including New Orleans Dallas §239,100 225,200 branch) 7,032,300 393,500 7,500,400 San Francisco 37,200 148,000 St. Louis 99,800 186,000 I 1,534,000 ,, • , , Minneapolis 25,300 : 19,800 ij Total j 10,315,100 j $817,000; 16,813,500 i :] i ll Commodity paper discounted by each Federal Reserve Bank during 1916, distributed by classes. i Atlanta j (including Class. Richmond. O N rl e e w an s ) | 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), j 4 — i - Beans $500 j $500 Bran 6,800 ' : 6,800 Coffee 125,000 i 125,000 Cotton §6,978,900 0,148,900 $1,074,000 j 8218,200 $300 14,420,300 Cotton seed 9^500 !............ i 9,500 Flax §3,666! 3,000 146 666 ! ............i............ 140,000 Hay 400 I 400 Hops ....].... 64,200 64,200 Maize 1 2.onn ; . .. 2,900 Oats . 29,200 1 29,200 Oil §360,000 7,000 20,500 387,500 Peanuts . . 41,100 6,666 i 47,100 Prunes ' i 5,000 5,000 Raisins 7, GOO 7, GOO Sugar... . 3i,666 ' 31,000 Wheat 994 100 ! 16,800 26,400 1,037,300 Miscellaneous n 6,100 6,100 . 4G0,000 24,000 496,200 Total 7,026,100 7,500,400 | 1,534,000 19,800 360,000 225,200 148,000 | 16,813,50, Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

140 FEDERAL RESERVE BULLETIN. FEBRUARY 1,1917. Discounted paper held by each Federal Reserve Bank on Dec. 29 1916, distributed by maturities. y Maturities. Federal Reserve Bank. Total. Per cent. Within 10 11 to 30 31 to 60 61 to 90 '• After 90 days. days. days. BBossttoonn $2,425,700 8899,700 §356,800 $44,500 '. $3,726,700 12.4 "N ew Y" ork" ' 422,100 5,372,300 1,134,800 139,000 . 7,068,200 23.4 Philadelphia 2,325,700 500,300 204,000 25,200 : $6,300 3,061,500 10.1 Cleveland 850,200 141,600 68,500 19,000 i 3,000 1,082,300 3.6 Richmond 819,100 843,300 828,300 377,000 11,000 2,878,700 9.5 Atlanta 962,000 439,400 761,300 890,600 i 36,600 3,089,900 10.2 Chicago 778,900 2,305,900 666,300 406,200 258,900 4,416,200 14.6 St. Louis 461,800 526,600 205,900 99,100 ! 17,400 1,310,800 4.4 Minneapolis 592,000 378,000 442,600 148,000 413,900 1,974,500 6.6 Kansas City 80,400 129,700 105,700 97,100 i 103,300 516,200 1.7 Dallas 153,400 162,500 150,500 161,700 ". 190,700 818,800 2.7 San Francisco 55,600 94,200 81,400 15,900 i 5,800 252,900 .8 Total 9,926,900 11,793,500 5,006,100 2,423,300 : 1,046,900 30,196,700 Per cent 32.9 39.1 16.6 8.0 ! 3.4 100.0 Amounts held on Dec. 30,1915 5,229.9 9,011.7 9,354.2 4,693.4 : 4,082.4 32,371,6 Per cent 16.2 27.8 28.9 14.5 i 12.6 100.0 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FEBEUART 1,1917. FEDEBAL SESEEVE BULLETIN. 141 ACCEPTANCES. Acceptances bought in open market and held by Federal Reserve Banlcs as per schedules on file on dates specified, distributed by classes of accepting institutions. [In thousands of dollars.! Bankers' acceptances. Bankers' acceptances. Trade Trade Date. ba b n e k r s. c T o n N m r ie u o p s s . n t a m - e b m S a t n b a k e te r s . ba P b n a r k i n v s k . a s t . e Total. m b a in a c o a n c u r o c e k g p e p e h e s t t n t - . a a T c n c o c e t e p a s l t . - Date. b M a b n e e m k r s - . c T o n N m r ie u o p s s . n t a m - e b m S a t n b a k e te r s . ba P b n a r k i n v s k . a s t . o Total. m b i a n a c o a n c u r o c e k g p e p e h e s t t n t - . a a T c n c o c o t e a p s l t . - 1915. 1916. Feb. 22 93 93 93 June 12 27,354 19,209 622 7,865 55,050 2,310 57,360 Apr. 5 3,653 7,820 10 110 11,593 11,593 June 19 32,011 19,490 560 9,067 61,128 2,054 63,182 May 3 5,038 8,189 10 110 13,347 13,347 June 26 33,155* 18,722 552 11,009 63,438 1,958 65,396 Juno 7 5,242 4,516 10 192 9,960 9,960 July 3 32,989 18,921 471 11,830 64,211 3,422 67,633 July 3 4,342 5,267 161 9,770 9,770 July 10 34,144 20,201 620 11,827 66,792 3,052 69,844 Aug. 2 5,350 5,407 20 352 11,129 11,129 July 17 40,497 22,309 593 13,193 76,592 3.685 80,277 Sept. 6 6,087 6,305 20 472 12,884 12,884 July 24 41,514 22,327 610 12,977 77,428 3,651 81,079 Oct.4 9,000 4,898 132 343 14,373 14,373 July 31 41,395 21,437 724 13,619 77,175 3,722 80,897 Nov.l 8,477 4,331 253 204 13,265 13,265 Aug. 7 39,695 19,060 738 13,940 73,433 4,225 77,658 Dec. 6 12,311 5,172 275 396 18,154 18,154 Aug. 14 41,536 18,144 754 13,443 73,877 4,387 78,264 Aug. 21 43,058 19,849 736 12,623 76,266 3,748 80,014 S 1916. Aug. 28 43,061 20,716 734 12,673 77,184 3,815 80,999 Jan. 3 15,494 7,160 362 822 23,838 23,838 Sept.4 41,413 20,356 726 12,491 .74,986 3,673 78,659 Jan. 10 16.492 8,057 370 938 25,857 25,857 Sept. 11 39,766 20,747 760 11,531 72,847 2,676 75,523 Jan.17 16,908 7,655 425 L,010 25,998 180 26,178 Sept. 18 42,533 22,105 743 11,443 76,824 2,673 79,497 Jan. 24 16,348 8,070 363 •L,441 26,222 180 26,402 Sept. 25 40,309 22.636 711 10,795 74,451 2,796 77,247 Jan. 31 15,834 8,174 356 ]L,510 25,874 180 27,054 Oct.2 37,798 21,'782 712 9,944 70,236 2,306 72,542 Feb. 7 15,681 7,876 336 L,456 25,349 489 25,838 Oct. 9 36,957 23,195 705 10,251 71,108 2,048 73,156 Feb. 14 17,581 7,985 347 L,851 27,764 528 28,292 Oct. 16 37,655 23,684 784 10,230 72,353 1,897 74,250 Feb. 21 17,661 8,194 392 L, 841 28,088 460 28,548 Oct. 23 39,694 26,281 867 10,718 77,560 1,723 79,283 Feb. 28 17,436 8,755 408 L,841 28,440 460 28,900 Oct. 30 37,993 27,951 733 11,829 78,506 2,468 80,974 Mar. 6 17,182 8,670 408 1,781 28,041 462 28,503 Nov. 6 37,770 29,474 1,014 12,147 80,405 2,378 82,783 Mar. 13 20,323 10,032 470 L,631 32,456 546 33,002 Nov. 13 39,494 28,434 1,383 12,802 82,113 3,425 85,538 Mar. 20 20,563 11,280 408 2,467 34,718 678 35,396 Nov. 20 43,173 31,237 1,670 13,854 89,934 3,721 93,655 Mar. 27 21,128 12,864 411 3,078 37,481 629 38,110 Nov. 27 46,118 32,527 1,704 14,636 94,985 3,979 98,964 Apr. 3 21,000 13,573 473 3,262 38,308 722 39,030 Dec. 4 47,748 33,232 1,630 16,069 98,679 4,487 103,166 Apr. 10 22,239 14,864 476 5,405 40,984 874 41,858 Dec. 11 55,671 35,466 1,635 17,291 110,063 4,896 114,959 Apr. 17.. 22,135 15,028 564 3,442 41,169 1,321 42,490 Doc. 18 61,029 36,220 1,514 17,349 116,112 4,634 120,746 Apr. 24 23,566 15,196 584 3,504 42,850 1,438 44,288 Dec. 25 64,975 35,874 1,539 18,113 120,501 4,500 125,001 May 1 24,875 15,400 585 3,430 44,290 1,477 45,767 May 8 25,058 15,750 671 3,493 44,972 1,518 46,490 1917. May 15 26,633 15.372 773 1,960 47,738 1,635 49,373 Jan.l 66,803 34,625 1,502 18,224 121,154 4,585 125,739 May 22 26,639 16,490 690 3,038 49,857 2,006 51,863 Jan. 8 60,066 32,467 1,325 16,915 110,773 4,249 115,022 May 29 26,104 16,541 690 5,895 49,230 2,037 51,267 Jan. 15 59,710 30,691 1,245 15,862 107,508 4,386 111,894 Juneo 24,080 17,029 644 7,007 49,360 2,208 51,568 Jan. 22 56,334 26,286 1,146 14,119 97,885 4,102 101,987 Acceptances held by each Federal Reserve Bank at close of business on Fridays, Dec. 29\ 1916, to Jan. 19, 1917, distributed by maturities. . [In thousands of dollars.] Acceptances maturing— ' Boston/ Y N o e r w k . i d P el h p i h la i - a. C la le n v d e . - I i 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 a?o i l n i n s- e- | ! Cit I y < . ^' Dallas.! I F ci S r s a a c n n o - . Total. Within 10 days: Dec. 29, 1910 649 0,114 2,560 1,953 1,515 G79 1,538 ! 1,084 896 j 731 108 2,503 Within 15 days: tf" J J a a n n . . 5 1 , 2 1 , 9 1 19 7 17 1 1, , 1 0 3 5 9 2 i j 7 8, ;0 1 9 0 6 1 3 3 , , 8 0 5 5 0 5 1 1 , , 8 8 5 0 9 5 1,1 7 0 7 8 3 9 9G 01 5 1 1 , , 9 0 7 0 4 8 I I 1,513 799 3 6 6 2 6 4 4 5 2 2 3 3 i I 3 1 , , 2 08 0 5 8 2 2 1 4 , ,3 6 0 5 4 3 P Jan. 19, 1917 1,673 ! 8,477 1,320 1,899 1,435 1,218 ! 11,992200 | 1, G94 85G 449 I 875 I 3,226 25,042 From 11 to 30 days: I Dec. 29, lOlf. 1,598 , 10,359 4,105 i 2,185 708 I 1,449 2,333 I 1,650 ! G40 j 555 725 j 3,413 29,720 From 16 to 30 days: From J J J a a a n n n 3 . . . 1 t 1 1 5 o 9 2 , , , G 1 1 O 1 9 9 9 1 1 d 1 7 7 a 7 ys: 2 3 3 , , , 0 3 4 2 0 4 9 1 2 ! : i o 7 6 , , , 2 1 o 0 2 z 3 5 o 2 2 1 , , , 2 0 3 2 8 2 2 8 0 1 1 1 , , , 3 8 0 2 9 8 9 9 7 8 9 1 6 G 5 1, 4 9 0 0 5 7 0 0 5 2 1 1 ; , , 2 9 9 7 2 2 1 0 8 I ! ! 1,0 7 9 51 4 7 7 5 3 3 9 9 6 7 i ! I 4 5 3 0 5 8 3 0 0 8 2 0 0 0 7 9 6 9 I 1 1 3 , , , 2 9 2 0 7 3 0 2 7 2 2 1 4 2 9 , , , 8 3 5 5 7 8 5 7 2 Dec. 29,191C 7,224 14,526 3,897 3,081 363 1,734 3,400 ; 1,005: 1,000 I 671 748 3,857 I 42,706 ' Jan. 5, 1917 G,358 13,439 4,459 3,100 513 1,141 3,233 ; 2,200 | 3,017 : 872 570 3,054 ; 42,082 rc Jan. 12,1917 5,598 , 12,779 3,432 3,007 428 1,243 3,111 i 2,084 3,068 1,599 402 4,074 I 42,085 ' Jan. 19, 1917 4,330 ! 12,557 3,983 3,037 573 1,261 3,270 2,972 ! 3,657 2,104 745 ! 5,101 i 44,256 From 61 days to 3 months: Dec. 29, 1910 3,254 ' 10,458 3,040 2,G52 1,108 692 2,942 2,385 2,992 1,933 020 • 2,000 ! 34,GS2 Jan. 5, 1917 3,500 9,354 2,504 3,027 1,143 1,045 2,910 2,291 :2,093 1,065 489 ! ~2 ,'4"6'4 "i "3~2, 6"1"*7" Jan. 12, 1917 4,001 7,086 2,420 2,356 1,108 928 1,984 • 1,785 I 2,039. 820 510 2,099 j 27,208 Jan. 10,1917 4,221 4,638 lJOGS 1,004 1,150 1,171 1,065 1,006 1,220 219 207 1,097 : 19,572 Total acceptances held: Dec. 29,191G 12,725 41,457 13,602 9,871 3,694 4,554 10,212 • 6,784 6,128 3,890 2,201 12,379 127,497 Jan. 5, 1917 13,277 38,417 12,199 9,891 3,394 4,102 10,043 • 7,132 G,290 3,011 2,351 11,040 121,807 Jan. 12,1917 13,827 35,109 11,001 9,151 3,400 ! 4,086 8,974 I0,785 0,645 3,294 2,174 11,413 115,979 Jan. 19,1917 13,066 31,797 9,493 8,227 4;138 | 4,110 8,189 0,423 6,475 3,212 2,033 10,684 i 108,447 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

142 FEDERAL RESERVE BULLETIN. FEBRUARY 1,1917.. Distribution by maturities of acceptances bought in oven market by each Federal Reserve Bank during calendar years 1915 and 1916. [In thousands of dollars.] j Atlanta. Total 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 . - j Rich- ! jj Ch g i o c . a - ; Lo S u t. i s. : | M ap i o n l n is c . - K C a i n ty s . as Dallas. F c S i r s a a c n n o - . s fo y r s- I branch). tem. Within 30 days: Calendar year, 1915 695 101 7 156 ! 103 | 61 2,980' 6 months ending June, 1916.... 4,552 322 579 270 133 j \ 50 539 11,553 July,1916 754 402 905 480 I "ill ill: 152 4,805 August, 1916 983 41 400 149 468 3,719 September, 1916 634 20 1,781 617 300 31 ! 227 4,118 October, 1916 231 253 21 717 November, 1916 1,171 250 398 *402"! 750 4,413 December, 1916 1,997 710 1,760 552 582 496 231 202 9,074 Total for 12 months, 1916... 1,258 ! 11,444 10,322 1,500 5,675 2,090 2,013 653 65 590 657 2,132 38,399 After 30 but within 60 days: Calendar year, 1915 2,137 | 2,377 1,464 746 19 816 374 191 183 750 9,057 6 months ending June, 1916 .. 1,433 j 5,063 4,016 1,267 961 261 1,840 1,151 | 459 2,299 19,380 July,1916 4" i 1,169 739 406 62 8 849 I 294 ! 619 4,219 August, 1916 87 1,101 609 855 46 250 362 j 382 216 311 759 4,97S September, 1916 723 1,227 1,934 489 749 339 871 | 887 299 187 474 8,179 October, 1916 100 1,233 1,750 846 375 90 148 I 441 338 138 1,009 6,82& November, 1916 , 1,943 3,823 1,223 550 16 590 413 392 27 34 387 9,431 December, 1916..... '887 2,343 1,295 881 272 395 601 226 444 784 10,588 Total for 12 months, 1916.... 5,177 ! 15, 11,566 5,294 2,481 I 2,006 6,095 3,963 2,545 1,348 836 6,331 63,601 After 60 days, but within 3 months: Calendar year, 1915 11,47J 22;211 5,406 2,116 250 46 4,810 1,324 1,219 1,536 2,419 52,808 6 months ending June, 1916... 24,049 34,435 10,959 5,472 2,126 5,389 4,321 2,500 1,635 5,847 96,733 July,1916 1,391 11,161 3,556 2,855 238 404 1,948 2,036 1,262 2,628 27,479 August, 1916 4,062 5,508 2,069 1,257 666 1,390 1,335 827 787 500 1,349 19,750 September, 1916 3,787 4,023 2,278 297 1,190 1,696 1,561 702 248 2,068 24,790 October, 1916 2,180 10,405 3,981 2,344 585 1,977 2,772 1,781 1,035 942 4,981 33,351 November ,1916 6,205 13,842 3,276 2,173 102 979 1,689 1,578 1,052 608 405 2,814 34,723 December, 1916 4,254 I 13,712 3,370 4,371 1,935 1,062 4,069 3,332 3,551 2,033 776 4,625 47,090 Total for 12 months, 1916.... 45,928 I 96,00331,234 20,750 3,157 8,404 18,953 | 15,944 j 10,929 6,253 2,049 24,312 283,916 Total acceptances bought: Calendar year, 1915 14,105 ! 25,834 7,565 2,963 250 72 5,782 1,801 ! 1,455 1,788 3,230 64,845 6 months ending June, 1916.... 25,832 • 44,22619,527 7,061 1,540 2,657 7,362 5 472 | 3,151 2,103 50 8,685 127,666- July,1916 1,395 1"4 ,"3"68" 5,049 3,663 1,205 412 3,277 2,401 | 1,334 3,399 36,50a August, 1916 4,340 8,086 3,661 2,153 446 916 1,752 1,717 1,053 1,098 649 2,576 28,447 September, 1916 4,673 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 2,320 2,920 2,222 1,373 1,137 726 6,011 40,894 November, 1916 8,630 18,620 5,670 2,728 368 1 967 2,124 1,991 i 1 444 635 439 3,951 48,567 December, 1916 , 5,213 17,829 6,662 5,962 3,967 2,082 6,759 4,309 4,152 2,755 1,451 5,611 66,752 Total for 12 months, 1916 52,363 ' 123,406 53,122 27,544 11,313 12,500 27,061 I 20,560 13,539 I 8,191 3,542 32,775 385,916 I Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FEBRUARY 1,1917. FEDERAL RESERVE BULLETIN. 143 Short-term investments (municipal warrants) held by each Federal Reserve Bank at dose of business on Fridays, Dec. 29,1916, to Jan. 19, 1917, distributed by maturities. [In thousands of dollars.] Warrants maturing— Boston. Y N o e r w k. d P e h lp il h a i - a. C la le n v d e . - m R o ic n h d - . la A n t t - a. c C a h g i o - . Lo S u t. is. M ap i o n l n i e s. - K C a i n ty sa . s Dallas. _ F c S i r s a a c n n o - . s T y l s o o t t e r a m l . Within 10 days: Doc. 29, 1916. .. 74 191 833 408 81 1,587 Within 15 days: Jan. 5,1917 132 60 695 61 1 152 366 10 40 25 466 2,008 Jan. 12, 1917 177 61 537 61 1 152 187 35 53 50 272 1,586 Jan. 19,1917.. 196 152 76 77 61 278 57 76 75 37 25 67 1,177 From 11 to 30 days: Dec. 29, 1916 187 60 720 152 391 35 40 50 466 2,101 From 16 to 30 days: Jan. 5, 1917 195 77 76 879 278 83 76 78 38 25. 67 1,870 Jan. 12, 1917.. 125 177 76 52 278 82 76 75 50 67 1,058 Jan. 19, 1917 10 290 25 25 40 25 2 417 From 31 to 60 days: Dec. 29,1916 255 442 76 52 61 278 182 76 91 63 2 67 1,645 Jan. 5, 1917 145 365 197 117 114 25 55 25 2 41 1,086 Jan. 12, 1917.. 163 371 30 854 117 145 33 49 6 2 78 1,848 Jan. 19,1917 323 131 56 918 117 145- 34 338 78 2 146 From 61 to 90 days: Dec 29, 1916 ^03 335 56 913 117 95 34 338 6 129 2 226 Jan. 5 1917 .. 308. 360 56 50 406 59 322 30 50 113 1,820 Jan. 12,1917 290 254 25 146 2 436 25 304 30 50 76 1,638 Jan. 19, 1917 120 249 5 ° 82 2 436 25 30 50 101 1,100 Over 90 days: Dec. 29, 1916 171 195 82 167 489 75 25 55 75 75 1,413 Jan. 5, 1917... 51 1,186 82 46 4 106 50 25 25 25 351 1,951 Jan. 12, 1917 51 1,186 336 451 2 868 304 25 76 76 355 3,730 Jan. 19, 1917 51 2,127 1,343 451 5 868 404 25 76 76 330 5,756 Total: Dec. 29, 1916 890 972 465 2,685 61 402 1,326 576 570 164 127 737 8,975 Jan. 5,1917... 831 1,988 274 1,867 61 400 921 576 488 164 127 1,039 8,736 Jan. 12, 1917 806 1,988 528 2,040 61 400 1,682 625 488 215 178 848 9,859 Jan. 19, 1917 . 700 2,949 1,480 1,528 61 402 1,531 564 478 174 153 576 10,596 Distribution by sizes of acceptances bought in open market by all the Federal Reserve Banks during the month of December, and for the 12 months ending Dec. 31, 1916. To §5,000. j To §10,000. To S25,000. To S50,000. To £100,000. Over §100,000.! Total. Acceptances bought in open market. 8 I B December, 1916: Bankers'acceptancos.. §2,285,434 805*6,352,204 1,321821,031,093 40i.SU>, 543,350 131 §10,087,005 40 §7,322,909| 3,486.1?64,827,G01 Trade acceptances 24t\ 64,472 34J 280,870 21 443,0181 3 114,394! 324,228 5 691,8841 91 a 1,924,866 Total 812 2,349,906j 839 6,(539,0741,34222,074,111 404i 10,602,7501 13511,011,833 45 Percent 3.6! 33.1 ! 24.9 ...J 16.5 November, 1916 15,614,427! 271, 11,290,050 8,844,327 6.772,7411 2.520 48,567,131 October, 1916... 12,333.597! 205i 12,142,475 0,990.915 2,963,522 2,228 40,893,093 September, 1916. 11,194,706: 165 6,835,609 6,830,652 7,197,162| 1,909 37,086,508 August, 1916 7,835,547! 131 i 5,340,003 5, 744,10(5 (5,721,6101 1,216 28,440,405 July, 1916. 12,830,111 *1°8=5 7,662,059 5,065,021 29 5,286,083 2,112 36,503,6431 June, 1916. 13,739,638 191 j 8,209,613 6,763,220 37 5,913,336 2,403 42,397,149 May, 1916. 5,960,425 108 3,262,880 fi2| 5,f.98,417 23 4' ,2~2"1 ,6"3"0 1,059!21,911,467 April, 1916. 847,351 5,420,116 94! 3.896,184 32! 2,697,334 11 3,332,850i 1,000 18,499,11(5) March, 1916 288 941,9081 6,578,432 109 4,539,071 62' 5,095,263 22 3,779,223! 1,071 22,918,0511 February, 1916 207' 789,675. 3,548,32(5 49i 1,830.851 21 1,613,614! 15 3,326,375j 707 12,410,830) January, 1916 1941 546,959' 4,113,720 47 1,857,477 17 l,284,593j 695 9,523,513 Total acceptances I bought during 12 ! months ending Decem-1 bor, 1916 ]5,21:27-15.203,153 5,02GJ40,674,810 170 121,243,162 2,019, S3,529,022 807*67,645,301| 308 57,529,92?;20,5571385,915,973 : I I i I * Of the above total, bankers' acceptances totaling $55,548,576 wero based on imports and exports, and ?9,279,025 on domestic trade transactions. 2 Of the above total, trado acceptances totaling $96,670 wore based upon domestic trade transactions, and SI, 198,196 were drawn abroad on impo•o]rters in the United States and indorsed by foreign banks. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

144 FEDERAL EESEBVE BULLETIN. FEBRUARY 1,1917. Total investment operations of each Federal Reserve Bank during the month of December and 12 months ending Dec. SI, 1916 and 1915. [In thousands of dollars.] Bills dis- Bills b m ou a g r h k t e t i . n open Municipal warrants bought. United States bonds and Treasury notes. Tot o a p l e i r n a v ti e o s n tm s. ent counted Bank. i for I ! m ba e n m k b s, e r B a a a c n n c c e k e p e s r t . - s3 a T c r c a e d p e t -! Tota '• l • . City. State. ot A h l e l r. Total. 2 ce p n e t. r 3 c e p n e t r . c 4 e p n e t r . n 1- o y t e e a s. r Total. D 1 e b 9 c e 1 e r 6 , m . - D 1 e b 9 c e 1 e r 5 , m . - Boston 14,810.1 5,213.1 I 5,213.1' 20,023.2 3,776.1 New York.... 17,978.0 17,660.4 168.8! 17,829.3 1,950.2! 1,950.2! 950.0 950.0 38,707.5 6,167.6 Philadelphia.. 11,917.7 6,651.1 10.7. 6,661.8| 194.2| 10.2| 204.4!. 18,783.9 2,948.9 Cleveland 3,653.8; 5,885.1 76.8! 5,961.9' 261.3! 6.2 267.5;. 250.0 250.0 10,133.2 1,383.8 .Richmond 3,852.0 3,966.8 1 3,966.8 1,916.25 ,916.25 9,735.05 3,838.5 Atlanta , 2,560.1 1,984.7 96.7 i 2,081.4: | 2.6! 2.6: 500.0 500.0 5,150.1 3,619.0 Chicago 5,706.9 6,417.9 341. l! 6,759.0; 335.31 1 335.31 1,575.0 40.0 j ,615.0 14,416.2 3,840.2 St. Louis , 1,254.2. 4,308.7 4,308.7| 227.11 i 227.1 5,790.0 920.9 Minneapolis... 1,491.5 4,152.0 4,152.0! 106.3; 106.3' "*i.*6* 5,750.8 908.1 Kansas City.. 147.8 2,755.6 2,755.5 50.3! 50.3 250.0 250.0 3,203.6 2,467.5 Dallas 289.7-. 1,451.6 1,451.6 50. 50.3 57.5 57.5 1,849.1 3,253.7 San Francisco. 48.5 4,380.6 1,230.8.' 5,611.4 212. 212.2 5,872.1 635.8 Total: Dec, 1916... 63,716.3 64,827.6 l,924.9j 66,752.5 3,387.2J 2.6 16.4 3,406.2 5,249.75 40.0" 250.0 5,539.75 139,414.75 •Dec, 1915... 15,412.0 9,869.0 2,921.0, 12,790.0 3,210.6 1,582.1 385.0 '• 380.0 2,347.500 33,760.1 12 months ending Dec. 31,1916 207,870.5 369,582.7 16,333.3,385,916.0 84,738.2-4,087.1 934.7 89,762.0 48,128.10 3,918.88 4,403.2 30056,750.18 740,298.68 12 months ending Dec. 31,1915 161,353.0 61,924.0 2,921.o! 64,845.0 65,859.3 11,776.35 3,167.20 770.0 15,713.470 307,770.77 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FEBRUARY 1,1917. FEDERAL RESERVE BULLEUK. 145 FEDERAL RESERVE BANK STATEMENTS. Resources and liabilities of each Federal Reserve Bank and of the Federal Reserve System at close of business on Dec. 29, 1916, to Jan. 19, 1917. RESOURCES. [In thousands of dollars.] Boston. Y N o o r w k. p P h d h e i i a l l a - . - C la le n v d e . - Rich- Ch go ic . a- Lo S u t. is. M ap i o n l n is e . - K C a i n ty s . as Dallas. c F i S r s a a c n n o - . s T y f s o o t t e r a m l , Gold coin and certificates in vault: Dec. 29, 1916 11,640 155,028 18,746 15,735 4,859 5,187 27,572 11,022 8,912 6,137 4,976 11,774 281,588 Jan. 5, 1917 .« 12,199 141,431 17,411 15,762 5,365 5,435 26,155 10,983 8,972 6,198 15,117 12,141 267,169 Jan. 12, 1917 12,788 153,264 21,606 16,125 5,202 5,438 29,216 12,065 9,730 6,389 5,297 15,709 292,829 Jan. 19, 1917 14,839 136,206 24,581 16,044 5,238 5,349 31,907 13,088 10,277 6,751 5,639 16,590 286,509 Gold settlement fund: Dec. 29,1916 14,737 20,570 8,042 16,953 19,416 7,439 26,183 7,064 21,236 14,947 10,489 170,471 Jan. 5,1917 19,506 26,357 12,916 20,759 15,789 5,186 33,220 4,585 8,406 24,728 11,598 8,951 192,001 Jan. 12,1917 20,708 35,674 13,456 22,440 17,186 4,950 31,854 5,159 7,453 26,382 13,619 7,660 206,541 Jan. 19,1917 17,546 41,644 17,016 23,827 16,809 3,425 34,982 6,040 6,790 26,654 11,873 5,445 212,051 Gold redemption fund: Dec. 29,1916 50 250 100 42 211 299 200 255 150 57 10 1,654 Jan. 5,1917 50 250 100 31 191 342 200 195 144 57 10 1,600 Jan. 12, 1917 50 250 100 228 482 200 156 100 152 45 10 1,782 Jan. 19, 1917 50 250 100 256 504 200 114 100 150 40 15 1,783 Legal-tender notes, silver, etc.: Dec. 29,1916 635 12,806 461 521 51 197 857 1,381 164 136 253 76 17,538 Jan. 5, 1917 515 10,224 1,051 512 121 818 323 1,852 214 175 327 48 16,180 Jan. 12,1917 533 9,636 1,304 671 81 568 840 2,134 336 207 402 57 16,769 Jan. 19, 1917 : 2,447 557 926 82 653 1,181 2,436 430 209 65 10,338 Total reserve: Dec. 29, 1916 27,062 188,654 27,349 33,251 24,537 13,122 54,812 16,053 16,170 27,659 20,233 22,349 471,251 Jan. 5,1917 32,270 178,262 31,478 37,064 21,466 11,781 59,898 17,615 17,622 31,245 17,099 21,150 476,950 Jan. 12,1917.; 34,079 1198,824 36,466 39,245 22,697 11,438 62,110 19,514 17,619 33,130 19,363 23,436 517,921 Jan. 19, 1917 34,882 !l78,057 42,623 40,744 22,385 9,931 68,270 21,678 17,597 33,764 18,035 22,115 510,681 Five per cent redemption fund against Federal Reserve bank notes: Dec. 29,1916 300 100 400 Jan. 5,1917 300 100 400 Jan. 12,1917 300 100 400 Jan. 19,1917 , 300 100 400 Bills discounted—members: Dec. 29,1916 3,727 7,068 ,061 2,879 3,090 4,416 1,311 1,974 516 819 253 30,196 Jan. 5,1917 1,900 6,810 839 579 3,746 3,390 4,384 1 141 1,872 497 828 231 26,217 Jan. 12,1917 1,483 6,246 862 650 3765 3,310 3,901 729 1,748 470 953 238 24,355 Jan. 19,1917 , 1,163 1,978 591 642 2,639 2,418 647 1,719 199 17,219 Bills bought in open market: Dec. 29,1916 12,725 41,457 13,602 9,871 3,694 4,554 10,212 6,784 6,128 3,890 2,201 12,379 127,497 Jan. 5,1917 , 13,277 38,417 12,199 9,891 3,394 4,162 10,043 7,132 6,290 3,611 2,351 11,040 121,807 Jan. 12,1917 , 13,827 35,169 11,001 | 9,151 3,460 4,086 8,974 6,785 6,645 3,294 2,174 11,413 115,979 Jan. 19,1917 13,666 31,797 9,493 8,227 4,138 4,110 8,189 6,423 6,475 3,212 2,033 10,684 108,447 United States bonds: Dec. 29,1916 1,332 1,043 1,651 i7,361 2,192 1,710 8,858 2,203 2,442 4,328 2,634 44,247 Jan. 5,1917 1,332 522 7,360 1,338 2,160 7,413 2,203 2,443 8,493 4,328 2,634 41,052 Jan. 12,1917 1,332 534 7,367 1,338 2,160 7,413 2,203 2,443 8,493 1,328 2,669 41,106 Jan. 19,19.17 1,332 534 6,165 1,338 2,160 7,413 2,203 1,913 8,493 1,919 37,899 One-year United States Treasurynotes: Dec. 29,1916 1,000 1,205 1,174 618 1,070 824 1,517 700 963 705 500 11,167 Jan. 5,1917 1,000 1,726 1,999 618 1,969 824 2,962 700 963 705 500 14,857 Jan. 12,1917 1,000 1,726 1,999 618 1,969 824 2,962 700 963 705 500 14,857 Jan.19,1917 1,000 1, 726 1,999 1,820 1,969 824 2,962 891 1,230 963 1,430 1,500 18,314 Municipal warrants: Deo. 29,1916 , 890 972 465 2,685 61 402 1,326 576 570 164 127 737 8,975 Jan. 5,1917 831 1,988 274 1,867 61 400 921 576 488 164 127 1,039 8,736 Jan. 12,1917 806 1,988 528 2,040 61 400 1,682 625 488 215 178 848 9,859 Jan. 19,1917 700 2,919 1,528 61 402 1,531 564 478 174 153 576 10,596 Federal Reserve notes, not: Dec. 29,1916 , 622 13,637 560 2,647 2,188 1,646 21,300 Jan. 5,1917 \ 549 16,102 602 2,335 2,076 21,664 Jan. 12,1917 ! 1,071 13,717 714 2,086 2,314 19,902 Jan. 19,1917 j 1,089 16,391 1,201 801 1,858 70 2,654 24,064 Due from other Federal Reserve • Banks,net: Dec. 29,1916 ' 11,188! 2,5 3,294 5,393 12,686 9,180 1,494 3,378 M6,958 Jan. 5,1917 : 1,853 7,213 2,303 169 3,829 891 652 651 933 16,666 Jan. 12,1917 225 122690 I 1,973 4,091 2,701 42 58 335 111,632 Jan. 19,1917 : 12,529 623 744 1,742 873 15,354 Uncollected items: ! Dec. 29,1916 Jan. 5,1917 ! 13,741 26,411 I 20,192 ' 9,933 9,639 9,561 18,165 11,495 4,755 8,305 I 4,966 5,466 142,629 Jan. 12,1917 10,433 25,042 I 16,653 ! 8,743 8,285 8,792 16,211 8,671 3,640 6,083 4,427 3,866 120,846 Jan. 19,1917 : 13,318 |27,207 i 16,691 j 11,9548,419 9,218 ! 15,580 9,402 4,254 6,414 | 4,895 4 764 !132,116 1 Difference between net amounts due from and net amounts due to other Federal Reserve Banks. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

146 FEDERAL RESERVE BULLETIN. FEBRUARY 1,1917. Resources and liabilities of each Federal Reserve Bank and of the Federal Reserve System at close of business on Fridays, Dec. 29, 1916, to Jan. 19, 1917—Continued. RESOURCES—Continued. [In thousands of dollars.l Boston. Y N o e r w k. p P d h h e i i a l l a - . - C la le n v d e . - m R o ic n h d t- . » tlanta. Ch go ic . a- Lo S u t. is. M ap i o n l n i e s - . I K C a i n ty sa . s' Dallas. c F S i r s a a c n n o - . sy T s f o o te t r a m l . All other resources: Dec. 29, 1916... 254 264 639 271 34 1,718 509 765 19 234 1,111 417 6,235 Jan. 5,1917 1.84 313 1,050 468 233 2,029 656 1,503 119 369 1,340 • 488 8,752 Jan. 12,1917 506 463 903 407 242 3,776 540 2,420 114 555 1,783 552 12,261 Jan. 19,1917 656 863 480 698 232 3,013 961 3,084 117 452 1,498 675 12,729 Total resources: Dec. 29,1916... 58,800 256,892 51,235 61,092 34,467 25,420 96,983 37,763 30,191 43,713 29,624 44,293 768,226 Jan. 5,1917 66,937 270,551 76,070 70,685 42,015 34,307 1110,606 43,447 34,941 54,598 31,912 45,557 869,730 Jan. 12,1917 64,762 283,709 81,928 70,908 41,817 34,786 1109,970 44,539 33,439 53,501 34,011 46,171 889,118 Jan. 29,1917 67,806 274,631 75,384 73,202 42,395 i 33,041 110,924 44,892 33,853 54,252 32,637 45,959 877,819 LIABILITIES. [In thousands of dollars.] Capital paid in: Dec. 29,1916 4,990 11,866 5,228 6,022 3,346 2,450 2,799 2,610 3,074 2,696 3,929 55,695 Jan. 5,1917 4,990 11,866 5,229 6,022 3,346 2,450 6,913 2,800 2,382 3,074 2,694 3,929 55,695 Jan. 12,1917 4,990 11,865 5,229 6,022 3,361 2,450 6,914 2,800 2.383 3,074 2,689 3,929 55,706 Jan. 19,1917 4,990 11,822 5,229 6,020 3,361 2,409 6,914 2,800 2; 400 3,074 2,693 3,930 55,642 Government deposits: Dec. 29, 1916 2,165 4,111 3,184 3,062 3,850 2,256 2,979 871 261 1,491 3,617 28,837 Jan. 5,1917 1,671 3,579 3,133 967 1,822 3,716 1,320 3,033 2,445 802 1,334 1,744 25,566 Jan. 12,1917 1,037 5,346 2,909 962 2,067 2,719 2,657 3,644 2,356 558 1,410 2,094 27,759 Jan. 19,1917.. 2,337 5,020 2,688 1,054 1,469 2,781 2,094 4,277 I 2,363 502 1,415 2,410 28,410 Due to members—reserve account: Dec. 29, 1916 Jan. 5, 1917 47,167 222,731 46,378 54,850 25,823 15,474 25,822 25,930 43,175 23,255 36,729 656,422 Jan. 12, 1917 48,944 235,139 49,774 56,011 26,180 16,328 90,742 25,558 25,758 44,247 24,874 37,031 680,586 Jan. 19,1917 45,243 234,951 45,450 54,738 25,663 14,916 92,126 25,683 25,698 45,268 23,843 36,297 669,874 Member bank deposits—net: Dec. 29,1916 51,378 240,734 41,493 54,080 25,267 15,874 88,012 26,169 38,338 22,659 36,683 Jan. 5, 1917 Jan. 12,1917 Jan. 19. 1917 Collection items: Dec. 29, 1916 Jan. 5, 1917 13,074 21,043 20,139 8,8-16 8,835 13,285 7,887 3,591 5,654 3,795 3,102 I 118,559 Jan. 12,1917 9,742 24,013 23,370 7,913 7,396 8,081 9,657 S.629 2,773 4,070 2,527 3,061 111,238 Jan. 19,1917 12,684 22,772 16,727 11,390 7,666 8,815 9,790 8,977 2,905 3,324 3,130 3,254 109,734 Federal reserve notes—net liability: Dec. 29,1916 1,136 2,692 j 3,220 3,916 2,040 1,126 14,130 Jan. 5,1917 1,112 2,189 j 2,719 3,905 593 1,893 834 13,245 Jan. 12,1917 i 553 2,531 ! 3,606 3,908 169 1,612 1,179 13,558 Jan. 19,1917 3,453 | 4,120 3,808 1,737 772 13,890 Due to other Federal Reserve , Banks, net: j Dec. 29,1916 ! 62 26 507 1,652 Jan. 5, 1917 11,256 640 Jan. 12,1917 7,267 282 1,332 Jan. 19,1917 2,509 5,198 783 ! 1,347 347 4S4 All other liabilities: Dec. 29,1916 267 181 194 38 34 778 Jan. 5,1917 35 76 79 oi \ 243 Jan. 12, 1917 49 79 87 50 ! 271 Jan. 19,1917 , 43 66 08 I Total liabilities: Dec. 29,1916 58,800 256,892 51,235 61,092 34,467 25,420 96,983 37,763 30,191 43,713 29,621 44,293 j 708,226 Jan. 5,1917 66,937 270,551 76,070 70,685 42,015 34,307 110,606 43,447 34,941 54,598 31,912 45,557 869,730 Jan. 12,1917 64,762 2S3,709 81,928 70,903 41,817 34,780 109,970 44,539 33,439 53,561 34,011 46,171 j 889,118 Jan. 19,1917 67,806 274,631 75,384 73,202 42,395 33,041 110,924 44,892 33,853 51,252 32,037 45,959 877,819 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

147 FEBRUARY 1,1017. FEDERAL RESERVE BULLETIN. Federal Reserve note account of each Federal Reserve Bank at close of business on Fridays, Dec. 29, 1916. to Jan. 19. 1917. [In thousands of dollars.] Boston. Y N o e r w k. ! d e P l h p i h l i 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. - K C an it s y a . s Dallas. c F S i r s a a c n n o - . fo T t r e o m s t y a . l s- Federal He-serve notes issued to the bank: Dec 29,1916 13,518 107,004 ' 17,070 83? 90, 431 Q90 7,18? 16,890 20,484 22,235 94 103 781 300,511 T T a a n n 5 12 , 1 1 9 9 1 1 7 7 1 1 3 4 ,0 4 0 9 4 11 10 0 4 9 , , 9 2 0 5 7 5 1 • 1 1 6 7 , 9 0 92 39 T 10 O,614 9 1 0 9, 3 1 8 9 5 4 0 2 " 4 , , 3 8 7 3 5 0 7 7 , , 1 1 7 7 « 3 1 1 0 6 , . 8 8 5 2 4 8 1 1 9 9 , , 4 4 6 3 2 8 2 2 2 1 , , 1 5 8 1 6 1 2 93 3 1 , 6 1 1 8 Q 2 1 14 4 , '7 76 8 7 1 2 3 9 0 3 0 , , 4 2 4 8 0 0 Tan 19,1917 13,946 105,488 16,934 558 016 707 7j100 16j782 19^907 21,130 098 759 292,014 Federal Reserve notes in hands of i bank: Dec 99;i9i0 622 13,037 104 500 1,138 1 051 2647 431 2,188 500 574 646 25,158 Tan. 5,1917 549 16' 102 i 188 00? 1 041 059 9335 442 1,407 647 366 076 27,407 Tan 12,1917 1,071 13,717 : 747 714 1,009 005 20«6 439 1,831 298 321 2 314 25,272 Fede T r a a n l . R 1 e 9 s ,1 e 9 rv 1 e 7 notes in circulation: 1,089 16,391 1 1,201 801 ^i057 511 1858 539 2,570 148 654 29,017 Dec. 29,1916 12.896 93,367 i 16,908 10 97? 10 21,869 4536 10,459 18 2°0 21,735 93,589 13 135 275,353 Tan 5,1917 12.942 93,153 j 16,851 10 053 18 744 24 323 4843 10,412 18,055 21,539 23,253 12 705 272,873 Tan. 12,1917 12,933 91,190 1 16.245 0 POO 18 195 94 105 5087 10,3S9 17,607 21,213 801 19, 268,188 Tan. 19, 1917 12,S57 ! 89^ 0971 15,733 9 757 17j959 190 5308 10.243 17,337 20,982 22'400 19008 262,967 Gold and lawful money deposited with or to the credit of the Federal Reserve Agent: I Dec 29 1916 13,518 1.07,004 ! 15,770 10 832 16 601 21049 7183 12,513 20,484 19,695 22,463 14781 282,523 Tan. 5,1917. 13.491 109,255 ; 15,739 10 655 1 16555 1 91004 178 12,507 17,462 19,616 419 14 781 281,292 Jan. 12,1917 14,004 10-1,907 j 15,692 10 614 15 594 ?0559 7173 12,481 17,438 ! 19,601 91 68? 707 274,512 Tan 19,1917 13,910 J105,488! 16,934 10,558 14506 19,076 7,166 12,435 17,407 19,245 21,028 11 752 273,141 Carrie.L to net assets: Dec 99,1916 022 13,637 560 2,647 2,188 ... 1 640 21,300 Carried to :\-t liabilities: 1 Dec 2.-* v0"6 1 1.136 2 092 3,220 3,916 j 2,040 i 1-126 14,130 1 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

148 FEDERAL RESERVE BULLETIN. FEBRUARY 1,1917. Federal Reserve note account of each Federal Reserve Agent at close of business on Fridays, Dec. 29, 1916, to Jan. 19, 1917. [In thousands of dollars.] B to o n s . - Y N o e r w k. P p d h h e i i l l - a a . - C la le n v d e . - m R o ic n h d - . la A n t t - a . 1 C c h ag i o - . Lo S u t. is. M ap i o m li i s c . - ! K C a it n y s . asDallas. F c S i r s a a c n n o - . Total. Federal Reserve notes: i- Received from Comptroller- D Ja e n c. . 5 2 , 9 1 , 9 1 1 9 7 10 2 2 8 8, , 8 8 S 80 0 1 1 1 8 8 0 0 , , 4 4 0 0 0 0 3 3 0 0 , , 4 4 8 8 0 0 1 1 7 7 , , 6 6 6 6 0 0 2 2 9 9 , , 5 5 0 0 0 0 3 3 5 5 , , 3 3 8 8 0 0 1 1 1 1 , , 8 8 8 8 0 0 2 2 2 2 , , 5 5 4 4 0 0 2 2 4 4 , , 5 5 0 0 0 0 2 2 8 8 , , 1 1 2 2 0 0 3 3 5 55 ,3 3 2 2 0 0 1 1 7 7 , , 7 7 2 2 0 0 4 4 6 6 2 2 , , 3 3 8 8 0 0 Jan. 12, 1917 28,880 180,400 ! 30,480 17,660 29,500 35,380 11,880 22,540 24,500 28,120 35,320 17,720 462,380 Jan. 18-19,1917 28,880 180,400 30,480 17,660 29,500 35,380 11,880 22,540 24,500 28,120 35,320 17,720 462,380 Returned to Comptroller- Dec. 29, 1916 7,402 53,478 0,150 3,728 6,569 3,835 1,697 2,610 896 2,132 4,501 1,939 94,935 Jan. 5, 1917 7,429 53,725 6,181 3,905 6,615 3,910 1,702 2,646 918 2,181 4,645 1,939 95,796 Jan. 12,1917 7,606 58,073 6,228 3,946 0,906 3,955 i 1,7072,672 942 2,226 4,782 1,953 101,056 Jan. 18-19,1917 7,724 59,492 6,286 4,002 7,084 4,038 1,714 2,718 973 2,282 4,936 1,908 103,217 Chargeable to Federal Reserve Agent- Dec. 29,191G 21,478 126,924 2-4,330 13,932 22,931 31,545 10,183 19,930 23,604 25,988 30,819 15,781 367,445 Jan. 5,1917 21,451 126.075 24,299 13,755 22,885 31,470 10,178 19,894 23,582 25,930 30,075 15,781 306,584 Jan. 12,1917 21,214 122,327 24,252 13,714 22,594 31,425 10,173 19,80S j 23,558 25,894 30,538 15,767 361,324 Jan. 18-19, 1917 21,156 120,908 21,194 13,058 22,416 31,342 10,160 19,822 ' 23,52725,838 30,384 15,752 359,103 In hands of Federal Reserve Agent- Dec. 29. 1916 7,960 19,920 7,260 3,100 2,500 5,625 3,000 3,040 3,120 3,753 6,656 1,000 66.934 Jan. 5,1917 7,900 17,420 7,260 3,100 2,500 6,095 3,000 3,040 4,120 3,753 7,050 1,000 66.304 Jan. 12, 1917 7,210 17,420 7,200 3,100 3,400 6,595 3,000 3,040 4,120 4,383 7,350 1,000 67,884 Jan. 18-19,1917 7,210 15,420 7,200 3,100 3,400 7,635 3,000 3,040 3,620 4,708 7,756 1,000 67,149 Issued to Federal Reserve Bank, net- Dec. 29, 1916 13,518 107,004 17,070 10,832 20,431 25,920 7, LS3 16,890 20,484 22,235 24,103 14,781 300,511 Jan. 5,1917 13,491 109,255 17,039 10,655 20,385 25,375 7,178 10,854 19,-462 22,186 23,019 14,781 300,280 Jan. 12,1917 14,004 104,907 16,992 10,614 19,194 2-4,830 7,173 16,828 19,438 21,511 23,182 i 14,767 293,440 Jan. 18-19,1917 13,946 105,488 16,934 10,553 19,010 23,707 16,782 19,907 21,130 22,628 I 14,752 292,014 Amounts held by Federal Reserve Agent: In reduction of liability on outstanding notes— Gold coin and certificates on hand- Dec. 29, 1916 32,600 101,452 3,730 I 10,220 3,460 5,165 '• 13,2304,370 10,340 164,567 Jan. 5, 1917 12,600 103,952 3,730 9,980 3,400 ' j 5,165 I 13,230 4,370 10,340 100,827 Jan. 12, 1917 13,150 99,952 3,730 :::::!2,900 I I 5,165 j 13,230 4,370 10,340 162,877 Jan. 18-19, 1917.. 13,150 100,952 3,730 ! 2,960 I | 5,165 | 13,230 4,370 10,340 163,877 Cr r e e d d i e t mp b t a i l o a n n ce fu nd i — n gold ! I ! i Dec. 29, 1916 018 5,552 860 ! 612 601 1,969 173 868 j 1,0 1,005 1,293 461 15,376 Jan. 5, 19.17 891 5,303 675 555 ! 1,894 168 832 ! 982 1,016 1,249 461 14,85o Jan. 12, 1917 854 4,955 782 ! 634 494 1,849 163 800 958 971 1,212 4'LV 14,125 Jan. 18-19, 1917.1 796 4,536 924 578 406 1,766 156 760 927 915 1,158 632 13,554 Credit balauce with Federal Reserve Board— Dec. 29, 1U1G 11,180 16,000 16,220 ! 7,010 ! 6,510 j 6,250 14,260 10,830 14,320 102,580 Jan. 5, 1917 | 11,180 I 16,000 16,250 i 7,010 ' 6,5103,250 14,260 10,830 14,320 <)U,010 Jan. 12, TJ17 i 11,180 : Vo, 100 15,750 I 7,010 : 6,5103,250 14,200 10,130 14,320 97,510 Jan. 18-19, 1917 ...| 12,280 I 14,100 14,350 7,010 : 6,510 3,250 13; 900 10,130 14,120 95,710 As security for outstanding \ notes— ; Commercial paper— j Dec. 29, 1910 1,300 3,830 4,271 4,347 2,540 1,700 17,988 Jan. 5, 1917 1,300 3,830 3,771 4,347 2,000 2,540 1,200 ! 18; 988 Jan. 12,1917 1,300 3,000 4,271 4,347 2,000 1,910 1,500 j : 18,928 Jan. 18-19, 1917 4', 510 4,031 4,347 2,500 1,885 1,000 , 18,873 Total- I Dec. 29, 1916 13,518 107,004 17,070 10,832 I20,431 25,920 7,183 16.890 20,484 22,235 24,163 ! 14,781 ! 300,511 Jan. 5, 1917 13,491 109,255 17,039 10,655 20,385 25,375 7,178 10;854 19,462 22,186 23,619 14.781 j 300,2S0 Jan. 12, 1917 14,004 104,907 16,992 10,614 19,194 24,830 7,173 10,828 19,438 21.511 23,182 14; 707 ! 293,440 Jan. 18-19, 1917 13; 946 105,488 16,934 10,558 19,016 23,707 7,106 10,782 19,907 21,130 22,628 ! 14,752 ! 292,014 Memorandum: Total amount of commercial paper delivered to Federal Reserve Agent— I Dec. 29, 1910 1,300 4,285 4,351 2,545 1,844 I 18,402 Jan. 5,1917 1,300 3,789 4,351 2,000 2,544 1.673 I 20,272 Jan. 12, 1917 1,300 4,290 4,348 2,000 2,208 1J587 : 20,845 Jan. 18-19, 1917 4,657 4,348 2,500 2,208 1,312 20,366 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

GOLD IMPORTS AND EXPORTS. Imports of gold, by customs districts, Dec. 22, 1916, to Jan. 19, 1917. [In thousands of dollars.] Y N o e r w k. O N rle e a w ns. z A o r n i a - . E P a a g ss le . Laredo. c F S i r s a a c n n o - . i W ng a t s o h n - . B fa u lo f- . Dakota. M g i a c n h . i- Alaska. r L e S a n w t c . e - . Total. Week ending Dec. 22, WIG. On) and baso bullion 25 31 4 8 4 92 34 20 55 273 lcSl 11 123 252 24 533 25 100 Foreign coin 2,434 2,434 Total . .... 206 31 15 s 4 2,526 157 272 : 55 24,533 27,807 Week ending Dec. 20. 1010. Ore and base bullion 22 6 33 17 22 32 9 66 207 Oth'>r refined bullion 191 1 200 49,352 49,744 United States coin 3 1 4 Foreign coin 2.433 2,433 Total 21(5 0 34 17 2,4.">o 32 200 9 no 1 40,352 52,3H8 i Total imports for calendar VOHT*, 3916 j 085,745 Excess of imports for calendar year, 1916 i 529,952 Week ending Jan. o, 1917. Ore and ba^e bullion . ... ... 50 100 78 02 10 A. 304 Other refined bullion 607 137 108 912 i i - Totol 7J7 100 78 199 108 10 4 1,216 Week ending Jan. 13,1017. Ore and base bullion 8 29 23 36 102 2 2 Othp-r refined bullion " - 233 382 United State? avn 50,000 50,000 Foreign coin 9 9 Total 2oO o 20 151 23 36 so or.n 50,495 Weel: ending Jan. 19, 1917. Ore and base bullion 82 12 71 35 10 62 273 Other refined bullion 85 2 121 208 "Foreign coin 4,867 4,807 Total 167 14 1 4,938 35 121 10 02 5,348 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Exports of gold, by customs districts, Dec. 22, 1916, to Jan. 19, 1917. [In thousands of dollars.] a H n M s d h a a i m N r in e p e e . - w M lan ar d y . - Y N o e r w k. P p d h h e i i l l a - a . - g V in ir ia - . Florida. t v G o e a n s l . - - Mobile. l N e O a e n r w - s. Alaska.Hawaii. F c S i r s a a c n n o - . A t i V o n a u s s - . h- Buffalo.Dakota. M g i a c n h . i- r L e S n aw t c . e - . m V o e n r- t. Total. Week ending Dec. 22,1916. United States mint or assay office bars 1 1 2 Bullion refined: Domestic 976 1 977 Foreign 5 United Slates coin 2 975 500 150 1,027 Foreign coin 852 852 Total 2 2,803 500 150 1 1 6 3,403 ! Week ending Dec. 29, 1916. Ore and base bi illion 37 1 38 United States mint or assay office bars 350 6 356 Bullion refined, domestic 6 48 51 United States coin 790 300 16") 1 238 30 500 2,024 Total 790 306 165 1 37 588 30 49 506 2,472 Total exports for calendar year, 1916 155,71)3 I Week ending Jan. 5, 1917. Ore and base bullion 15 15 United States mint or assay office 1 >ars. 103 517 i G20 Bullion refined, domestic 61 7 1 09 United States coin . 2,933 1,150 33 121 753 4,990 Foreign coin 253 253 Total 103 3,247 1,150 33 638 15 700 1 5,947 Week ending Jan. 12,1917. United States mint or assay office bars 16 16 Bullion refined domestic 1 5 6 United States coin 627 2,539 3,650 25 u 750 3 7,630 Forpiim coin 16 ! 16 Total 627 2,555 3,650 25 22 15 771 3 7,608 Week ending Jan. 19, 1917. United States mint or assay office bars 21 1 22 Bullion refined, domestic ii i 73 U Fo n r i e te ig d n S c t o a i t n e s coin ! : 1,350 260 349 33 47 1 2,0 2 4 5 1 3 253 i i Total 1,614 260 349 33 68 03 2j 2,389 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FEBRUARY 1,1917. FEDERAL KESEBVE BULLETIN. 151 EARNINGS ON INVESTMENTS OF FEDERAL RESERVE BANKS. Average amounts of earning assets held by each Federal Reserve BanJc during December, 1916, earnings from each class of earning assets, and annual rates of earnings on the basis of December, 1916, returns. Average balances for the month of the several classes of earning assets. c B o i u ll n s t d e i d s , - Bil in ls o b p o e u n ght U S n ta i t t e e s d T O r n e e a - s y u e r a y r Municipal Total. members. market. bonds. notes. warrants. Boston S6,436,305 $12,038,375 §1,338,250 81,000,000 SI,041,092 $21,854,682 New York.... 6,454,118 39,472,542 771,279 1,205,000 3,206,051 51,108,990 Philadelphia.. 4,437,008 14,101,710 1,654,065 1,174,000 872,609 22,239,398 Cleveland 1,205,755 9,589,687 7,341,821 618,000 2,712,954 21,468,217 Richmond 2,584,218 2,558,044 740,997 1,070,000 60,750 7,014,009 Atlanta 2,848,801 4,930,352 1,569,375 824,000 403,663 10,576,191 Chicago 3,571,684 8,848,817 8,355,842 1,517,000 1,556,441 23,849,784 St. Louis 1,818,527 0,957,971 2,208,232 891,000 556,903 12,432,033 Minneapolis.. 1,512,100 5,514,200 2,446,100 700,000 675,100 10,847,500 Kansas City.. 580,862 3,200,321 9,113,624 963,000 270,137 14,187,944 Dallas 910,997 1,867,8(53 4,309,137 705,000 | 120,033 7,913,030 San Francisco 284,112 13,174,810 2,633,750 500,000 ! 1,215,764 17,808,466 Total... 32,644,547 122,314,728 42,482,472 11,167,000 12,692,097 I 221,300,844 Earnings from— Calculated annual rates of earnings from— B co i m b l u l e e s n r m t d s 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 it t d e e s s d . T O r n n e o e a - t s e y u s e . r a y r p M r a a l u n n w t i s a c . r i- - Total. B co 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 g p l e s h en t t . U b S o n ta n i t t d e e s s d . T O r n n e o e a t - s e y u s e . r a y r p M a r l a u n n w t i s c a . i r - - Total. Per cent. Per cent Per cent. Per cent. Per cent Boston §19,476 §27,972 §2,396 £2,610 $2,875 855,329 3.46 2.66 2.05 2.98 3.16 2.90 New York 18,551 92,479 1,305 3,045 8,170 123,559 3.38 2.76 2.00 3.00 3.01 2.87 Philadelphia.. 13,562 30,908 2,787 2,967 2,519 52,743 3. CO 2.58 1.98 2.98 3.40 2.80 Cleveland 3,916 20,941 14,521 1,545 9,021 49,944 ! 3.84 2.58 2.30 3.00 3.93 2.75 Richmond 8,886 7,013 1,282 2,80(> 189 20,170 j 3.93 3.14 2.00 3.00 3.55 3.29 Atlanta 9,007 12,764 3,433 2,136 | 1,276 28,616 ! 3.64 2.9(5 2.50 2.96 3.61 3.09 Chicago 13,004 19,493 15,909 3,793 I 4,200 I 50,399 : 4.30 2. (50 2.25 3.00 3.19 2.80 St. Louis 5,588 15,256 4,207 2,252 1,556 I 28,859 3.62 2.58 2.24 2.98 3.30 2.73 Minneapolis... 5,826 12,200 4,306 1,750 1,782 25,864 4.55 2.61 2.08 2.95 3.12 2.82 Kansas City... 2,533 7,811 17,479 2,447 841 31,111 5.13 2.83 2.25 3.00 3.67 2.59 Dallas 3,868 4,945 7,866 1,782 334 18,795 5.10 3.15 2.20 3.00 3.40 2.86 San Francisco. 1,101 29,024 4,382 1,250 2,887 38,644 4.58 2.06 2.00 3.00 2.80 2.60 Total i 105,318 280,806 79,873 j 28,383 I 13,659 530,039 i 3.81 2.7i: 2.22 i 3.00 3.30 2.83 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

152 FEDERAL RESERVE BULLETIN". FEBRUARY 1,1917. DISCOUNT RATES. Discount rates of each Federal Reserve Bank in effect Jan. 29, 1917. Maturities. Discounts Trafle acceptances. Agricul- tural 1 W 0 i d t a h y in s. 1 W 5 i d t a h y in s. d 1 a 1 y t s o , i 3 n 0 - d 1 a 6 y t s o , i 3 n 0 - d 3 a 1 y t s o , i 6 n 0 - d 6 a 1 y t s o , i 9 n 0 - an s d to l c i k ve- da T y o s , 3 i 0 nclusive. clusive. clusive. clusive. paper clusive. over 90 days. Boston • 4 4 4 5 V New York 4 4 5 3' C Ph le i v la e d la e n lp d hia |1 4 A 4 41 4i 4 5 4 3 3 - Richmond 4" 4 4 \ 41 3"2 Atlanta : 4 4 4 41 31 Atlanta (New Orleans branch) Chicago 31 •1 4 f 5 M St i . n L n o e u ap is olis 3 4 1 " I 4 4 4 4 t f Kansas City 1 4-7.- 41 Dallas 3-', : 4^ 4 U 55 San Francisco 1 "3 4 41 OC OC 00 ^J Comm m p o a a p d tu e it r r y - b P o a u p g e h r t M b co a e l m n l k a b t s e - ' r ing in open eral 31 to 60 61 to 90 market. loans. days, in-days, in- 90clay^. clusive. clusive. 3-\ 3-' 4 4 31 U 3 31 34 31 31 3 3 1 i , 3J 3i 31 1 31-5{« 2 3;t—4 8 3 8 -J 31 I 3 5 i 34 3£ 3 3 5 1 1 431 3-5 4 31 3J 3J 4 1 Rate for bills of exchange in open-market operations. 2 Rate for trade acceptances bought in open market without member bank indorsement. a Rate for commodity paper maturing within 30 days, 3i per cent; over 30 to 60 days, 4 per cent; over 60 to 90 days, 41 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. Page. Acceptances, distribution of, by sizes, maturities, etc 141-144 Amendments to act presented to Congress 98-106 Business conditions throughout the 12 Federal Reserve districts 119-134 Clearance system: Status of 80 Operation of " 115 Commercial failures in 1910 113 Commercial paper, distribution of 135-140 Discount rates in effect 152 Drafts, immediate availability of, at par 78-80 Earnings on investments of Federal Reserve Banks 151 Federal Advisory Council, recommendations of, on proposed amendments to Act 106-109 Federal Reserve Banks, earnings and expenses of 89-93 Federal Reserve Bank statements 145-146 Federal Reserve Board, receipts and disbursements of -. 87, 88 Federal Reserve Act, proposed amendments to, submitted to Congress 98-106 Federal Reserve note account of agents and banks, statement of 147-148 Federal Reserve notes for redemption, shipment of 82 Fiduciary powers granted 115 Foreign Governments, securities of, policy of Board concerning 82 Gold imports and exports 149-150 Gold settlement fund: Expenses of 94 Summary of, for month 94-97 Informal rulings of the board: Bill of lading drafts 114 Agricultural and live stock paper 114 Acceptances for advertising 114 Law Department: Trade acceptances based on advertising space 116 Rights of liquidating national bank to accrued dividends 117 Advisory committee of member banks 118 Malburn, Hon. W. P., appointed chief bank examiner 80 National bank charters granted 115 Receipts and disbursements of Federal Reserve Board 87, 88 Reserve provisions of Act, computation showing effect of amendment 109,110 Reserves, change in form of clearing-house bank statement showing position of 83 Resources and liabilities of Federal Reserve Banks 145-146 Review of the month 75 State banks, advantages of, in joining system, views of Federal Reserve Bank officer 84-87 Sub treasuries, relation of, to Federal Reserve Banks 110-112 United States bonds, purchase of, by Federal Reserve Banks 80-82 i o Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis