Federal Reserve Bulletin, 1917-08

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

FEDERAL RESERVE BOARD. EX OFFIOIO MEMBEKS. W. P. G. HARDING, Governor. PAUL M. WARBURG, Vice Governor. WILLIAM G. MOADOO, FREDERIC A. DELANO. Secretary of the Treasury, ADOLPH C. MILLER. Chairman* CHARLES S. HAMLIN. JOHN SKELTON WILLIAMS, Comptroller of the Currency. H. PARKER WILLIS, Secretary. SHERMAN ALLEN, Assistant Secretary and Fiscal1 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 officers and directors may have it sent to not less than 10 names at a subscription price of $1 per annum. No complete sets of the Bulletin for 1915 are available. Bound copies of the Bulletin for 1916 may be had at $5 per copy. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

TABLE OF CONTENTS. Page. Review of the month ,,, ,,,,,.,, 577 Export licenses in the foreign trade ... 582 Development of branches and branch by-laws 585 "The Federal Reserve System and the war,'' reprinted from the Official Bulletin.., 588 Remittances of member banks „. 591 Exemption from military service 591 State bank membership 592 "Reasons why one State institution entered the Federal Reserve System,'' by Breckenridge Jones 598 Circular of Department of Banking, State of Idaho, regarding State bank membership 599 The Liberty Loan and its successor 599 Income tax on funds invested in Liberty bonds. .. 601 Computation of reserves of national banks, letter by Comptroller of the Currency 602 Canadian short-term credit 603 State banks admitted during the month 603 Press statements: Increase and decrease in number and capital of national banks 603 Calls for reports of condition 604 Fiduciary powers granted 604 Commercial failures reported 604 New national bank charters granted 605 Earnings and expenses of Federal Reserve Banks 605 Federal Reserve notes issued during 1917 and cover held by agent 610 Chart showing - 610 Gold settlement fund , 611 Operation of the clearing system. 613 Informal rulings of the Federal Reserve Board 614 Law department 616 Business conditions throughout the Federal Reserve districts 620 Clearing operations since July, 1914 — 634 Chart showing 635 Discount operations of the Federal Reserve Banks 636 Acceptances - - 637 Resources and liabilities of the Federal Reserve Banks — 645 Federal Reserve note accounts of Federal Reserve Banks and agents 647 Federal Reserve notes received from and returned to Federal Reserve Banks far redemption 648 Earnings on investments of Federal "Reserve Banks . _... 649 Gold imports and exports.... - - - - 650 Discount rates in effect 650 IV Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FEDERAL RESERVE BULLETIN VOL. 3 AUGUST 1, 1917. No. 8 REVIEW OF THE MONTH, been to make the demands upon the Federal Reserve Banks in connection with the loan de- Banking developments during the month of cidedly smaller than had at one time seemed Ju.lv have given the first clear probable. The " peak" of the load borne by re- The Banks and . /. ,. '., , , i-i £ the Liberty Loan, indication of the country s abil- serve banks was reached on June 22, immediity to purchase and hold the ately after the completion of the subscriptions, new issues of Government bonds that were at which time the aggregate bills held by the being placed on the market. There were no Federal Reserve Banks amounted to $435,definite indications so long as the process of 000,000, as contrasted with $145,000,000 about subscription continued, and no accurate figures a month earlier. Almost immediately, for the for some time after the closing of subscriptions, reasons already indicated, this large volume of establishing how far the loan had been paid in paper began to be lowered, falling on July 13 full by subscriptions and how far the banks of to $335,000,000. Of this latter sum, only the country had availed themselves of the $13,159,000 represented paper secured by special discount privileges afforded by the United States bonds or certificates. A third Federal Reserve System both to member and j payment of 20 per cent, due on July 30, is in nonmember institutions. The first payment process of being made as this issue goes to press, made upon subscriptions was 2 per cent of the but arrangements to liquidate it having already face of the bonds plus 18 per cent additional largely been made by the subscribers, and the payable on June 28, leaving 80 per cent of the amount involved not being likely to be much face to be provided for by subsequent pay- in excess of $100,000,000, the payment will ments. Figures setting forth the loan situation probably not materially affect the banking at Federal Reserve Banks published in advance position. of the announcement of the result of the loan Considerable liquidation of investments, were somewhat misleading because of the fact principally of bills and United that not a few institutions had discounted f States securities, is indicated by heavily at Federal Reserve Banks in order to the comparative statement of be ready to make payment in full for bonds the earning assets held by the Federal Reserve subscribed to by them. Such discounting sug- Banks on June 22 and July 20, respectively. gested the possibility of a continuous draft upon Liquidation apparently set in immediately folthe resources of the reserve banks. Reduc- lowing the completion of subscriptions to the tions of the larger subscriptions and prompter liberty Loan and is shown to have been payment by smaller subscribers than had been heaviest at the New York bank, which reported looked for resulted in the almost immediate re- the largest amount of accommodation to member duction of accommodation furnished by Federal banks in connection with Liberty Loan opera- Reserve Banks to their members and through tions. Substantial reductions in the amounts the latter to nonmembers. The outcome has of bills on hand are also reported by the three 577 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

578 FEDERAL RESERVE BULLETIN, A.i:{JUST .1, 1017. eastern reserve banks and by the San Francisco rely upon his bank for assistance either in takbank. M'ost of the bills liquidated were mem- ing or carrying the new securities. ber banks' collateral notes, secured by commer- Complete data embodying the returns recial paper or United States securities. Be- ceived by the Treasury Department are pretween June 22 and July 13 the amount of such sented in the following table, which shows notes held by Federal Reserve Banks decreased that the amount of the subscriptions remainfrom $169,789,000 to $59,557,000; since then ing payable immediately following the June 28 the total has increased to $78,795,000, the installment was less than $542,000,000. amount held on July 20. It is noticeable that the Federal Reserve Payments on Liberty Loan allotments by the Federal Reserve Banks to June SO, 1917. Banks' holdings of acceptances increased between June 22 and July 20 from $194,303,000 to Paid in $197,720,000 as against a simultaneous decline Un T i r t e e a d s u S r t y a - tes In cash (apin the holdings of discounted bills from $240,- Federal Reserve Bank. Allotment. (a c p e p rt r i o fi x c i a m te a s te p am ro o x u im nt a s t ) e . 984,000 to $161,386,000. amounts). In the following table are given the changes Boston 8265,478,000 345,800,000 $63,800,000 between the two dates in the amounts of bills New York 593,987,000 275,500,000 151,500,000 Philadelphia. 164,760,000 39,400,000 30,000,000 held by each Federal Reserve Bank: also Cleveland 201,977,000 48,000,000 69,900,000 . Richmond 88,594,000 10,000,000 19,300,000 changes in the total holdings of other classes Atlanta,. 46,283,000 4,100,000 10,400,000 Chicago 272,702,000 52,100,000 64,800,000 of investments: St. Louis 65,029,000 22,900,000 17,100,000 Minneapolis.. 53,759,000 4,800,000 20,600,000 Kansas City.. 62,183,000 19,600,000 17,200,000 [In thousands of dollars; i.e., 000 omitted.] D Sa a n ll a F s rancisco 1 3 4 6 9 , , 6 0 6 4 3 5 , , 0 0 0 0 0 0 2 1 1 0 , , 8 5 0 0 0 0 , , 0 0 0 0 0 0 4 1 3 0 , , 7 0 0 0 0 0 , , 0 0 0 0 0 0 Net in- Net de- Total... 2,000,000,000 554,500,000 518,300,000 Federal Reserve Bank. June 22. July 20. crease. crease. Ratio Payments B N Ph o e i s w l t a o d Y n e o lp rk hi . a . . .. 2 4 2 2 7 1 0 , , , 5 7 0 8 9 3 6 5 2 1 2 3 3 4 4 3 , , , 9 6 5 2 4 5 6 2 4 8 2 6 6 , , , 9 8 4 4 6 7 4 8 9 Fede B ra a l n k R . eserve B p a y m r o c o r x e u i d m n i t t a s t ) e ( . ap-To t t o a l J p u a n y e m 30 e . nts t o m o f a e p l n a lo t y s t - - ( s a t p m il p l a r d t o e u x e i- Cleveland 20,499 17,686 2,813 ments. amounts). A Ri t c la h n m ta ond 1 5 6 , , 2 9 2 1 7 9 1 6 8 , , 5 6 5 6 9 3 1 1 , , 7 3 4 3 4 2 Chicago 41,933 50,535 8,602 Per ct. St. Louis 11,287 15,013 3,746 Boston $55, 800,000 $165,400,000 62 $100,000,000 Minneapolis 10,586 10,648 62 New York 121, 100,000 548,100,000 92 45,800,000 Kansas City 18,031 24,061 6,030 Philadelphia 39,100,000 108,500,000 66 56,200,000 Dallas . . 5,151 7,925 2,774 Cleveland 42,100,000 160,000,000 79 42,000,000 San Francisco 16,261 14,899 1,362 Richmond 23,100,000 52,400,000 59 36,200,000 Atlanta 21,600,000 36,100,000 78 10,100,000 Total bills 435,287 359,111 76,176 Chicago , 24,400,000 141,300,000 52 131,400,000 Total United States securities. 114,918 75,315 39,603 St. Louis 19,900,000 59,900,000 92 5,100,000 Total municipal warrants 2,444 2,186 258 Minneapolis 4,600,000 30,000,000 56 23,700,000 Kansas City 15,400,000 52,200,000 84 10,000,000 Totalinvestmentsheld - 552,649 436,612 116,037 Dallas 3;800,000 24,300,000 66 12,300,000 San Francisco 14,700,000 80,200,000 54 68,800,000 Total... I 385,600,000 U,458,400,000 73 541,600,000 These facts suggest in outline the satisfactory character of the outcome of the 1 The daily Treasury statement of June 30 reports total Liberty Loan payments to that dato $1,385,024,456.38. The difference between that Distribution of Liberty Loan operation from figure and those given above is due to the fact that the Treasurer had bonds. not received official advices through the mails of the full amounts, the standpoint of the Federal which came by telegraph. Consequently, the difference is in transit to the Treasurer. Reserve Banks. The resources of the banks have been employed as required, but have not- While the returns thus show that an unexpectbeen made a regular reliance. They are avail- edly small proportion of the $2,000,000,000 of able for occasions of future need. There re- securities issued was taken by the community mains to be answered, however, the question subject to the privilege of paying by installhow far the banks of the country have become ments, and while the figures furnish no direct investors in Government bonds and also how far evidence as to the distribution of the bonds bethe "ultimate investor" has been obliged to tween the banks and the public, it is estimated Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

AUGUST 1,1917. FEDERAL RESERVE BULLETIN. 579 that the banks of the country actually took serve Banks became effective on June 21. As for their own account only a small proportion, noted in the last issue of the Federal Reserve less than one-fourth and probably less than Bulletin, the Board suggested to the Federal one-fifth of the new issue. The amount which Reserve Banks that they permit the new reserve they have assisted their customers in carrying payments to be made gradually, giving the can not as 3^et be stated, but the figures so far reserve city and country banks until July 15. available show that it has been but a small part The condition of the reserve banks as reported in of the total. This is equivalent to saying that the weekly statement lor July 21 is, therefore, a large fraction of the issue may be regarded as the first in which approximately the full effect having been " absorbed.7' The volume of bonds of the new reserve requirements is exhibited. which are still awaiting placement in the hands That statement shows the cash reserve in of investors is not large enough to cause any reserve banks as $1,430,000,000, an increase of material change in the liquid condition of the $183,000,000 over the figures of June 22, banks, particularly in view of the fact that a which represented conditions as they were considerable proportion will undoubtedly be just prior to the changes resulting from the absorbed at an early date through the liquidaamendments to the Federal Reserve Act tion of loans by the partial payments of indiadopted June 21. The sum mentioned includes vidual buyers and investors. Most of the bonds $116,000,000 liquidated investment besides have thus been taken by actual and ultimate transfers of reserves in accordance with the investors, the banks acting primarily as interamended act. This transfer of reserves in mediaries and distributors. Conditions in the cash is practically that which was anticifinancial market as affected by the placing of pated by the Board in its statements with the loan are thus well protected. Great credit reference to the effect of the amendments should be given to the banks of the country made public from time to time during the not only for their actual support and the hard work they have done in connection with the discussion of the legislation while pending in operation, but also for their general observance Congress. The provision of the amend men ts of sound principles of finance in the disposal of permitting the establishment of clearing acthe new securities. counts by nonmember banks which desired to avail themselves of the clearing and collecting Notwithstanding that the process of absorbprovisions of the Federal Reserve Act, has ing the Liberty Loan bonds was proceeding satalready been availed of in a few cases. A isfactorily, and notwithstanding the fact that new item representing these accounts has the slight extent to which the banks had relied been introduced into the Board's general upon the Federal Reserve System for funds to be statement of condition, but the amount of used in carrying the bonds, the Board thought it—$4,767,000 on July 21— shows that the it desirable on July 14 to extend, subject to opportunity has thus far been used by noncancellation, the. term of the permission given member banks in a limited degree. It is safe in its circular letters of May 22 and June 9, to say that there will be a much larger which had provided for the rediscounting of nonuse of this facility in the future and that member bank notes under special conditions. consequently the process of shifting cash to The banking situation growing out oi' the subscriptions to the liberty Federal Reserve Banks has by no means sit T ua h t e i on reserve TL oan i h as i b een • in some measure reached its limit. The same statement may obscured by the fact that the be made with reference to the authority reserve transfers necessitated by the amend- granted in the new act to issue Federal ments to the Federal Reserve Act which con- Reserve notes based on gold and gold certificentrated reserves in the hands of Federal Re- cates as collateral. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

580 FEDERAL RESERVE BULLETIN. AUGUST 1,1917. The gold export and import situation de- banks have likewise continued generally modserves notice in connection with erate. In many cases the banks of the country have accommodated their customers the reserve Positionwho were purchasing Liberty bonds at the Resumption on a large scale rate borne by the bonds themselves—3i per of gold imports and increasing gold exports, cent—without any margin of banking profit. mainly to the Far East, Spain, and South The only important exception to this generally America, are indicated by the weekly reports low level of interest charges was observed on of the United States customs collectors to the July 16 and 17, when call money in New York Federal Reserve Board. Gold imports were for a few hours rose to 10 per cent, closing at 6 particularly heavy during the weeks ending per cent. June 22 and July 6, when large consignments of It may be well to recall that the framers of gold from Canada were received at New York the Federal Reserve Act had in mind facilitatand largely taken by the New York Federal ing trade and commerce by putting commercial Reserve Bank. For the four weeks ending trade paper on a preferred basis. It is there- July 13 the net inward gold movement was fore no criticism of the new banking system that 863,179,000, gold imports during the period call loans on stock exchange collateral should amounting to $129,730,000 and gold exports occasionally run above the low figures which to $66,551,000. have long prevailed. The increase in the country's stock of gold The remarkably satisfactory condition existthrough net gold imports since August, 1914, ing generally in the money marappears from the following exhibit: Success of the ket during the past month is the loan operation. Gold imports and exports into and from the United States greatest, perhaps, but only one, from Aug. 1, 1914, to July 13, 1917. of the many indications pointing to the eminent [000's omitted.] success with which the banking and financial operations attendant upon the placement of the Excess of Imports. Exports. im o p v o e r r ts new bonds have been conducted. The fundaexports. mental element of this success is seen in the policy early adopted by the Treasury, of per- A Ja u n g . . 1 1 t t o o D D e e c c . . 3 3 1 1 ,1 , 9 19 1 1 5 4 ! | 4 S 5 2 1 3 , , 9 2 5 5 5 3 §1 3 0 1 4 , , 4 9 2 7 6 2 i 4 $ 2 8 0 1 , , 5 7 2 1 9 9 mitting the funds subscribed by customers of Ja a n n . . 1 1 t t o o J D u e l c y . 1 3 3 1 , , 1 1 9 9 1 1 7 6 j ! 6 5 8 1 5 8 , , 7 5 4 6 5 9 2 1 2 5 0 5 , , 3 7 6 9 1 3 2 5 9 2 8 9 , , 2 9 0 5 8 2 banks to continue on deposit in such banks, Total ! 1,679,522 ! 512,552 1,166,970 provided the latter would qualify as Government I i depositories, until such time as these funds were 1 Excess of exports over imports. required for disbursement to cover the expenses The Federal Reserve Banks have not found of the Government. Through the medium of it necessary to raise their rates the Federal Reserve Banks, the funds were then Rates of in- of interest at any time either placed to the credit of the Treasury Departterest. during the Liberty Loan sub- ment and have been disbursed without the scription period or during the subsequent withdrawal of actual cash from the banks or transfers of reserve funds. Their conditions of the market. Under the Board's rulings estabaccommodation have continued upon the same lishing special rates and special maturities for basis as during the spring months of 1917,the accommodation of both member and nonacceptances being discounted at about 3£ per member banks there has always been available cent, while other commercial paper in the an adequate supply of accommodation for the interior has ranged from one-half per cent to 1 use of any banks which might find themselves per cent higher, according to maturity. In- temporarily short of funds as the result of the terest rates at member and other commercial shifting of the Government's credits. The op- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

AUGUST 1, 1917. FEDERAL RESERVE BULLETIN. 581 eration, in the large sense of the term, was tern, acting as a unit, at the service of any simply a transfer of bank credits on the books region or locality which might feel the stress of of the bank first to the ownership of the Gov- exceptional need. Some measure of relief of ernment and then to that of the corporations this type has, however, been realized through and individuals who were supplying the goods the gradual growth of ih.Q discount market and and services required in the conduct of the war. the purchase of bankers' acceptances originat- This operation, unprecedented in its size and ing from transactions in various parts of the scope in the financial history of the United country. The system's holdings of such accep- States, is a striking demonstration of the use- tances have increased materially during the fulness and capacity of the Federal Reserve past month, the amount of bills bought in open System. markets held on July 20 being nearly $200,000,- There has been considerable discussion dur- 000, as compared with about §84,000,000 at-the ing past months regarding the opening of May. This increase in the holdings Real strength of (( expansive" power of the Fed- of acceptance paper represents a corresponding the system. eral Reserve Banks under the volume of support extended by the Federal provisions of existing law. This discussion Reserve System to banking institutions. The has experienced a marked revival since the influence of this form of accommodation is amendments to the Federal Reserve Act be- national rather than local, regardless of the came law on June 21, and in some quarters it particular place or market in which the actual has been suggested that the amended act opens purchase of the paper representing these possibilities of "inflation" of the banking and | acceptance transactions was made. credit system of the country. One phase of the banking situation as When all has been said, however, it should affected by the placing of great Development of be emphasized that the real strength of the commercial paper. Federal Reserve System is not to be measured probability that the sale oi mainly by its expansive powers but by the bonds would necessarily continue throughout assurance it affords of furnishing relief where the duration of the war, deserves consideraneeded, and for shifting available reserve tion. Whenever ver}^ large issues of bonds are funds readily from one part of the country afloat in a market for securities, -they tend to to another. The effectiveness of this power become the basis upon which accommodation to extend prompt but temporary aid has is asked at banks. An important effect of been strikingly illustrated during the recent such a condition of affairs is the relative in- Liberty Loan operations, and in a less con- crease of paper secured by bonds in the spicuous way during the crop-moving seasons portfolios of banks, and the relative decrease of the past two years. So largely has the re- of purely commercial paper. The large purserve strength of the banks exceeded any chases made by the Government are paid immediate necessity for its use that the trans- for directly or indirectly through the sale of fer of banking accommodation from one part bonds, and these tend to occupy a larger and of the country to another through the appli- larger place in banking operations, unless a cation of the process of rediscounting between special effort is made to develop the com- Federal Reserve Banks has never been nec- mercial paper element of banks' investments. essary. The several Federal Reserve Banks In view of this situation, special interest have stood ready at all times to furnish this attaches to the efforts now being made to develop intra-system accommodation, designed to equal- the acceptance in its various forms. With a ize funds between different sections of the view to ascertaining what are the principal country, and to put all the strength of the sys- problems to be encountered in such develop- 3674—17 2 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

582 FEDERAL RESERVE BULLETIN. AUGUST 1,1917. ment to-day, the Board has recently transmitted countries; they can not, however, ship to these to representative bankers and business men countries an amount of goods sufficient to in the 12 Federal Reserve districts interroga- offset the debit balance against them; while tories designed to bring out the actual facts for various reasons it is impracticable for the in the situation. These replies are in process allies to settle by shipment of gold. This in of examination and tabulation. The results itself would explain the depreciation of the as ascertained will be published in the hope that sterling rate in neutral countries. The questhey may contribute to the prompt and effective tion arises, however, why American exchange development of a sound and liquid element of should be at a discount in these countries, when, the commercial paper of the country. The in- as a matter of fact, the United States maintains quiry thus far indicates that the business com- favorable trade balances with all of these munity is well disposed toward the develop- neutral nations. ment of the acceptance system, but better Aside from the question of a diminution in understanding of the principles and methods our exports to these neutral countries, which involved in this form of credit as well as wider is too recent to have been a factor in the situand more cordial cooperation on the part of the ation, it is evident that so long as England banks will be necessary if it is to be success- maintains sterling exchange in the United States fully and broadly introduced as a factor in the at a fixed rate (approximately par), dollar market. exchange in foreign countries will, by reason of There has recently been much discussion the preponderating volume of trade settled in concerning the causes of the sterling bills, move in substantially the same oreign ex- decline of dollar exchange in direction as sterling exchange. The situation change values. . to is a complex one and is receiving the careful certain neutral countries. A attention of the Board. comparison of the rates paid for cable transfers upon the leading neutral markets in Europe shows that the depreciation of dollar exchange is considerably less than the depreciation of Export Licenses in Foreign Trade. sterling. The following figures illustrate this In view of the interest felt by banks engaged point: in export trade in the working of the export Comparative rates for cable transfers to principal neutral license provisions of Federal law as recently places in Europe, based upon quotations in New York and enacted, there are herewith presented the essen- London on July 5, as reported by the National City Bank tial facts on this subject as authoritatively of New York City and the London Economist. made known. 1. On June 15 there was approved an act Ne c w ab l Y es o . rk c D h e a o n x ll g - a e r . L c o a n b d le o s n . c S h te a e r n x l g - in e g . entitled "An act to punish interference with the foreign relations, the neutrality, and the Per Per foreign commerce of the United States, to Q r u a o te te s. d ra P t a e r s. c d e e n p t r e o - f Q r u a o te te s d . ra P t a e r s. c d e e n p t r e o - f punish espionage and better to enforce the ciation. ciation. criminal laws of the United States, and for other purposes.7' Amsterdam 24.24 24.88 2.57 11.55 12.107 4.60 Christiania 33.90 37.31 9.14 16.20 18.159 10.79 2. Under the terms of this law, the Presi- Stockholm 32.68 37.31 12.41 15.55 18.159 14.37 Copenhagen 34.31 37.31 8.04 16.35 18.159 9.96 dent of the United States issued the following Zurich 4.75 5.18 8.30 22.60 25.225 10.41 Madrid ... 4.255 5.18 17.86 20.35 25.225 19.33 Executive order: By virtue of authority vested in me by Title The allied belligerent countries are heavy VII-of the act approved June 15, 1917, entitled, purchasers of goods in almost all neutral "An act to punish acts of interference with the Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

AUGUST 1,1917. FEDERAL RESERVE BULLETIN. 583 foreign relations, the neutrality, and the made hereunder, shall be fined not more than foreign commerce of the United States, to $10,000, or, if a natural person, imprisoned punish espionage and better to enforce the for not more than two years, or both; and criminal laws of the United States, and for any article so delivered or exported, shipped, other purposes/' I hereby vest in the Secretary or taken out, or so attempted to be delivered of Commerce the executive administration of or exported, shipped, or taken out, shall be all instructions issued by the President under seized and forfeited to the United States; and said Title VII and of the proclamations there- any officer, director, or agent of a corporation under, and the said Secretary is hereby au- who participates in any such violation shall be thorized and directed to take such measures as liable to like fine or imprisonment, or both. may bo necessary to administer and execute "Whenever there is reasonable cause to the same and to grant or refuse export licenses believe that any vessel, domestic or foreign, is thereunder, in accordance with those instruc- about to carry out of the United States any tions. article or articles in violation of the provisions I hereby establish an Exports Council, to be of this title, the collector of customs for the composed of the Secretary of State, the Secre- district in which such, vessel is located is hereby tary of Agriculture, the Secretary of Com- authorized and empowered, subject to review merce, and the Food Administrator, and I by the Secretary of Commerce, to refuse clearhereby authorize and direct the said Exports ance to any such vessel, domestic or foreign, Council, thus constituted, to formulate, for for which clearance is required by law, and by the consideration and approval of the Presi- formal notice served upon the owners, master, dent, policies and make the recommendations or person or persons in command or charge of necessary to carry out the purposes of this act. any domestic vessel for which clearance is not required by law, to forbid the departure of such WOODROW WILSON. vessel from the port, and it shall thereupon be The WHITE HOUSE, 22 June, 1917. unlawful for such vessel to depart. Whoever, in violation of any of the provisions of this section shall take, or attempt to take, or authorize the taking of any such vessel out of port or from the jurisdiction of the United States, shall 3. Subsequently, on July 9, the President of be fined not more than $10,000 or imprisoned the United States issued the following proc- not more than two years, or both; and, in addition, such vessel, her tackle, apparel, furniture, lamation: equipment, and her forbidden cargo shall be Whereas Congress has enacted, and the forfeited to the United States." President has on the fifteenth day of June, And whereas, the public safety requires that 1917, approved a law which contains the fol- succor shall be prevented from reaching the lowing provisions: enemy; '' Whenever during the present war the Presi- Now, therefore I, WOODROW WILSON, President shall find that the public safety shall so dent of the United States of America, do hereby require, and shall make proclamation thereof, proclaim to all whom it may concern that, it shall be unlawful to export from or ship except at such time or times and under such from or take out of the United States to any regulations and orders and subject to such country named in such proclamation any ar- limitations and exceptions as the President ticle or articles mentioned in such proclama- shall prescribe, until otherwise ordered by the tion, except at such time or times, and. under President or by Congress, the following articles, such regulations and orders, and subject to namely: Coal, coke, fuel oils, kerosene and such limitations and exceptions as the Presi- gasoline, including bunkers; food grains, flour dent shall prescribe, until otherwise ordered by and meal therefrom, fodder and feeds, meat and the President or by Congress: Provided, how- fats; pig iron, steel billets, ship plates, and ever, That no preference shall be given to the structural shapes, scrap iron and scrap steel; ports of one State over those of another. ferro-manganese; fertilizers; arms, ammuni- "Any person who shall export, ship, or take tion and explosives, shall not, on and after the out, or deliver or attempt to deliver for export, fifteenth day of July, 1917, be carried out of or shipment, or taking out, any article in viola- exported from the United States or its territion of this title, or of any regulation or order torial possessions to Abyssinia, Afghanistan, Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

584 FEDERAL RESERVE BULLETIN". AUGUST 1, 1917. Albania, Argentina, Austria-Hungary, Belgium, published. Additions may be made to this her colonies, possessions or protectorates, list if it is determined that other articles are Bolivia, Brazil, Bulgaria, China, Chile, Colom- properly included in the general headings bia, Costa Rica, Cuba, Denmark, her colonies, given in the President's proclamation. Official possessions or protectorates, Dominican Repub- notice will be given of such changes when they lic, Ecuador, Egypt, France, her colonies, pos- occur. sessions or protectorates, Germany, her colonies, Export license is required at present for any possessions or protectorates, Great Britain, her article on the following list: colonies, possessions, or protectorates, Greece Guatemala, Haiti, Honduras, Italy, her colo- Coal. Ship plates and structural nies, possessions or protectorates, Japan, Li- Coke. shapes—Continued. Fuel oils: Steel channels. beria, Leich tens tern, Luxemburg, Mexico, Mo- Lubricating oil. Steel angles. naco, Montenegro, Morocco, Nepal, Nicaragua, Benzol. Mild steel plates, ordi- The Netherlands, her colonies, possessions or Head lantern oil. nary tank quality. protectorates, Norway, Oman, Panama, Para- Toluol. Steel beams. Naphtha. Steel plates, \ of inch guay, Persia, Peru, Portugal, her colonies, Benzine. thick or heavier; steel possessions or protectorates, Roumania, Russia, Red oil. sheets, J inch thick Salvador, San Marino, Serbia, Siam, Spain, her Kerosene and gasoline, in- or heavier are classicolonies, possessions or protectorates, Sweden, cluding bunkers. fied as steel plates. Food grains, flour and meal Steel tees and zees. Switzerland, Uruguay, Venezuela, or Turkey. therefrom: Structural steel shapes. The orders and regulations from time to time Corn flour. Boiler plates. prescribed will be administered by and under Barley. Tank plates. the authority of the Secretary of Commerce, Rice flour. Steel doors. Rice. Steel car frames. from whom licenses, in conformity with the said Oatmeal and rolled oats. Steel towers. orders and regulations, will issue. Fodder and feeds:._ Scrap ir6n and scrap steel. In witness whereof I have hereunto set my Oil cakes and oil-cake Ferromanganese. meal. Fertilizers. hand and caused the seal of the United States Malt. Cattle manure, shredto be affixed. Peanuts. ed. Done at the city of Washington this Meats and fats: Nitrate of soda. ninth day of July, in the year of our Poultry. Poudrette. Cottonseed oil. Potato manure. [SEAL.] Lord one thousand nine hundred and Corn oil. Potassium salts. seventeen and of the independence of Copra. Land plaster. the United States of America the one Cocoanuts, desiccated. Potash. hundred and forty-second. Butter. Cyanamide. Fish, dried, canned, or Phosphoric acid. WOODROW WILSON. fresh. Phosphate rock. By the President: Grease, inedible or edi- S uperphosphate. ble, of animal or vege- Chlorate potash. FRANK L. POLK, table origin. Bone meal. Acting Secretary of State. Linseed oil. Bone flour. Lard. Ground Bone. Meats, all varieties. Dried blood. Tinned milk. Ammonia and ammonia Peanut oil and butter. salts. 4. On July 23, the Department of Commerce Rapeseed oil. Acid phosphate. published officially (in "Commerce Reports"), Tallow. Guano. Tallow candles. Humus. a list of articles for which export licenses are Stearic acid. Hardwood ashes. required, with an introductory note, as follows: Pig iron. Soot. Steel billets: Sheep manure, pulver- For the information of shippers, the Exports Steel sheet bars. ized. Steel blooms. Anhydrous ammonia. Council has authorized the publication of a Steel slabs. Arms, ammunition, and exlist comprising the articles which have already Ship plates and structural plosives: been determined to be included under the shapes: Nitrate of potash. general headings mentioned in the President's Iron plates. Rosin. "I" beams. Sulphur. proclamation of July 9. This list supersedes an Mild steel plates. Saltpeter. unauthorized and incorrect statement hitherto Rolled steel plates. Turpentine. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

AUGUST 1, 1917. FEDERAL RESERVE BULLETIN. 585 5. The forms of application for export Applicant's reference No Dated licenses now in use under this system are as Bureau of Foreign and Domestic Commerce, Division of Export Licenses. follows: I hereby apply for a license to export DEPARTMENT OF COMMERCE, We (Quantity.) BUREAU OP FOREIGN AND DOMESTIC COMMERCE, of (Goods). WASHINGTON. to. "(Consignee.) (Address.) Application Form A. Original. "(Signature of applicant.) APPLICATION FOR ORDINARY EXPORT LICENSE. | License to be sent to This form should be made out in triplicate, and the answers to the j (Name.) following questions must be written legibly, or typewritten if possible. ' When filled out and signed, send the three copies to the Bureau of For- (Address.) eign and Domestic Commerce. Division of Export Licenses, 1435 K Street NW., Washington, D. C, or to the nearest branch office of the bureau This license is void after 60 days from date. (New York, Boston, Chicago, St. Louis, New Orleans, San Francisco, Seattle). DEPARTMENT OF COMMERCE, BUREAU OF FOREIGN AND DOMESTIC COMMERCE, Applicant's reference No Dated WASHINGTON. Bureau of Foreign and Domestic Commerce, Application Form A. Triplicate. Division of Export Licenses. APPLICATION FOR ORDINARY EXPORT LICENSE. I hereby apply for a license to export We (Quantity.) This form should be made out in triplicate, and the answers to the following questions must be written legibly, or typewritten if possible. of When filled out and signed, send the three copies to the Bureau of Foreign (Goods.) and Domestic Commerce, Division of Export Licenses, 1435 K Street to NW., Washington, D. C, or to the nearest branch office of the Bureau (New York, Boston, Chicago, St. Louis, New Orleans, San Francisco, (Consignee.) (Address.) Seattle). (Signature of applicant.) License to be sent to Applicant's reference No Dated §». (Name.) Bureau of Foreign and Domestic Commerce, Division of Export Licenses. (Address.) I hereby apply for a license to export This license is void after 60 days from date. We (Quantity.) of (Goods). This stub will be filled in, detached, and sent promptly by the to. deputy collector of customs at the port of shipment to the Bureau of (Consignee.) (Address.) Foreign and Domestic Commerce, Division of Export Licenses, 1435 K Street NW., Washington, D. C. (Signature of applicant.) Port, License to be sent to (Name.")" Date, ,191. To Bureau of Foreign and Domestic Commerce, (Address.) Division of Export Licenses, This license is void after 60 days from date. Washington, D. C: This is to certify that has shipped (Consignor.) Official forms for the export license itself will against export license, dated , a total of (Quantity.) shortly be made available. of on the s. s , (Goods.) on bill of lading dated. , 191.., from this port. (Signed) Development of Branches and Branch By-Laws. Deputy Collector of Customs. DEPARTMENT OF COMMERCE, Further progress in connection with the BUREAU OF FOREIGN AND DOMESTIC COMMERCE, development of the branch policy of the Fed- WASHINGTON. eral Reserve Board has been made during the Application Form A. Duplicate. past month by completing the arrangements APPLICATION FOR ORDINARY EXPORT LICENSE. for the organization of two branches. The de- This form should be made out in triplicate, and the answers to the following questions must be written legibly, or typewritten if possible. cision to establish the first of these—that at When filled out and signed, send the three copies to the Bureau of Foreign and Domestic Commerce, Division of Export Licenses, 1435 K Street Spokane, Wash.—had already been announced. NW., Washington, D. C, or to the nearest branch office of the Bureau (New York, Boston, Chicago, St. Louis, New Orleans, San Francisco, On July 13 the Board made public the final Seattle). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

586 FEDERAL RESERVE BULLETIN. AUGUST 1, 1917. arrangements for the organization at Spokane Nebr., assistant cashier First National Bank of of a branch of the Federal Keserve Bank of Omaha. San Francisco, to be under the control of a The Federal Reserve Board has designated board of five directors, three of whom have two directors, as follows: P. L. Hall, Lincoln, been designated by the Federal Keserve Bank Nebr., president Central National Bank; R. O. of San Francisco and two by the Federal Re- Marnell, Nebraska City, Nebr. serve Board. Those designated on behalf of | The manager of the branch and chairman of the Federal Reserve Bank were as follows: E.T. its board will be Mr. O. T. Eastman. The Coman, president of the Exchange National State of Wyoming will probably be included Bank of Spokane; D. W. Twohy, president of in the territory assigned to the Omaha branch. the Old National Bank of Spokane; and Charles | Other branches whose establishment is under A. McLean, at present manager of the Spokane | careful consideration by the Board are those Clearing House. i proposed for Pittsburgh, Pa., Cincinnati, Ohio, Those designated on behalf of the Federal !Louisville, Ky., and Denver, Colo. Some other t Reserve Board were as follows: Peter Mc- j branch projects have not yet reached any defi- Gregor, a farmer and stock raiser, living near i nite stage of development, but are under dis- Spokane, and G. I. Toevs, a business man of I cussion. long experience in the milling and banking The establishment of a branch of the Federal business, and now vice president and manager Reserve Bank of Richmond at Baltimore, Md., at Spokane for the Centennial Mill Co. Mr. has, as stated in a former issue of the Bulletin, McLeans will be manager of the branch and been agreed upon, but details of organization chairman of its board. have not yet been completed. The Board, has been advised that the eligible Standard by-laws for use in branches have State banks in trie territory adjacent to the been agreed upon by the Board and the banks Spokane branch will take the necessary steps interested. These, subject to minor changes toward becoming members of the Federal Re- intended to adapt them to local conditions, will serve System as soon as possible, and it is un- be as follows: derstood that the local banking community will freely use the new branch, wraie there will BY-LAWS OF THE FEDERAL RESERVE BANK OF FOR THE OPERATION OF ITS BRANCH be close working arrangements between it and BANK AT the Spokane Clearing House. ARTICLE I. The second of the two branches—that at Subject to the approval of the Federal Reserve Board, Omaha, Nebr.—was definitely authorized on | the Federal Reserve Bank oi! , hereinafter desig- July 18. The Federal Reserve Board then ; nated as the "head office," will designate the member made public the fact that it had completed the ! banks which will be members of the branch. plans for the establishment of a branch of the i As a matter of bookkeeping the capital contribution of branch member banks will be credited to the branch Federal Reserve Bank of Kansas City at the I bank of which they are members and the branch member point named, and issued a statement furnishing banks will be requested to maintain the balances required the details of organization. by law with the branch and to carry on all Federal Re- The branch, like that at Spokane, will be oper- serve Bank correspondence with the branch instead of i with the head office: Provided, however, That any such ated by a board of five directors, of whom three ! member bank, under arrangements to be approved by the have been selected by the Federal Reserve I head office may remit to or draw upon the head office or Bank of Kansas City, as follows: Luther Drake, j other branches for account of its respective branch. Omaha, Nebr., president Merchants7 National The reserve so paid in and the capital so credited to the branch shall, as a matter of bookkeeping, be considered Bank; J. C. McNish, Omaha, Nebr., owner Mcas the funds of the branch: but all funds of the branch Nish Cattle Loan Co,; O. T. Eastman, Omaha, I shall be subject to control of the head office. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

AUGUST 1, 1917. FEDEEAL KESERVE BULLETIN. 587 ARTICLE II. ' SEC. 8.—The head office shall fix the compensation of i officers, clerks, and employees of the branch bank, subject SECTION i. Number and quorum.—The number of direc- to the approval of the Federal Reserve Board. tors shall be five, of whom the manager shall be one. SEC. 7.—All expenditures of the branch bank shall be A majority of the directors shall constitute a quorum for subject to the approval of the head office. the transaction of business, but less than a majority may SEC. 8.—Order o/ business.—The following shall be the adjourn from time to time until a quorum is in attendance. order of business at each meeting of the board: SEC. 2. Vacancies.—Vacancies in the membership of the (1) Reading and disposition of minutes of the last regular board shall be filled and successors selected in the manner meeting. provided by law. (2) Report of the manager, including information con- SEC. 3. Meetings.—There shall be a regular meeting of cerning banking and business conditions in the branch the board every first Friday l after the first Tuesday l of bank territory, as well as detailed summary of all business each month at 10 o'clock a. m., or, if that day be a holiday, transacted since last regular meeting and statement of on the first succeeding full business day. The manager present condition, the latter to include: shall be empowered to call a special meeting at any time, (o) Statement of all loans and rediscounts. or shall do so upon the request of the Lead office or the (b) Investments and purchases made for account of the written request of any two directors. Notice of said head office. meeting, if by mail, shall be mailed at least one day prior (c) Statements concerning clearing operations. to date of meeting; and if given by telegraph or telephone, (d) All official correspondence received from the head at least two hours before the time of meeting. office. SEC. 4. Powers.—(a) The board of directors shall super- (3) Report of committees. vise the operation of the branch bank under direction and (4) Unfinished business. control of the head office, subject to such regulations as the (5) Approval of reports and recommendations to head Federal Reserve Board may prescribe. office. (h) The directors of the branch bank shall have power (6) New business. to rediscount for member banks of the branch district ARTICLE III. paper eligible under the provisions of the Federal Reserve Act and regulations of the Federal Reserve Board: Pro- DISCOUNT COMMITTEE. vided, however, That the aggregate of paper rediscounted SECTION 1. How constituted.—There shall be a discount for any single member bank shall not exceed a certain committee consisting of the manager and two directors limit to be fixed by the branch subject to the approval of (with an alternate for each of the latter), any two of whom the head office. Any amounts in excess of this limit may shall constitute a quorum. Such directors shall be elected only be rediscounted subject to the approval of the head by the board, to serve for a period not to exceed six months, office. and as far as practicable their successors shall be chosen in (c) The branch bank may clear and collect checks for rotation until each member shall have served or shall member and nonmember banks in the territory assigned have been given opportunity to serve. An alternate for to it or in other parts of the district on the same plan fol- service on the discount committee shall be authorized to lowed by the head office. serve in the absence or disability of the member first (d) The head office may request the branch to forward chosen. to the head office paper rediscounted by the branch or other The compensation of a director when serving on the collateral eligible for the purpose for deposit with the discount committee shall not exceed the following: Federal Reserve Agent as collateral for Federal reserve (a) If a resident of ,8 per day for each day the notes, or it may direct the branch to place at the disposal j committee is in session. of the Federal Reserve Agent such rediscounts or other ! (6) If a nonresident of , $ per day for each collateral. day the committee is in session, with an additional allow- (e) The branch shall not engage for its own account in ance to cover actual necessary expenses incident to atopen market transactions, bankers' acceptances, trade ac- tendance at said meetings. ceptances, warrants or Government bonds, except subject SEC. 2. Minutes.—The discount committee shall cause to the orders and for account of the head office. to be kept minutes of all meetings held by it, which shall SEC. 5.—Directors when present at directors' meetings be read and disposed of by members of the board at the shall receive a compensation of S per day for each day next succeeding meeting. A copy of such minutes shall the board is in session, and an allowance to cover actual nec- be sent to the head office immediately after each meeting essary expenses incident to attendance at regular or special and also subsequent notice of approval. meetings of the board. SEC. 3. Powers.—Subject to the rules and regulations prescribed by the 1-oard of directors of the head office, 1 These days are simply suggested and are subject to change by the the discount committee shall be vested with the following branch directors by and with the approval of the Federal Reserve Bank. powers: Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

588 FEDERAL RESERVE BULLETIN. AUGUST 1, 1917. (1) To pass upon all commercial paper and acceptances ARTICLE V. submitted for discount or purchases made for account of COUNSEL. the head office. (2) To apply through the head office for such Federal SECTION 1. The general counsel of the head office shall Reserve notes as may be necessary for the general require- act as counsel for the branch bank, and shall represent the ments of the branch bank. branch bank in such matters as may be assigned to him (3) To employ or to delegate to officers of the branch and shall approve all legal documents; and said general bank authority to employ clerks and other subordinates counsel may appoint a local * * * attorney as assoand to define their rules and to fix their compensation ciate counsel, with a retainer to be approved by the head subject to section 6, Article II of the by-laws. office. (4) To approve bonds furnished by the officers and ARTICLE VI. employees of the bank and to provide for their custody. AUDITOR. (5) In general, to conduct the business of the branch SECTION 1. The auditor of the head office shall act as subject to the direction and control of the board of direcauditor of the branch bank. tors and the head office. ARTICLE VII. ARTCILE IV. CAPITAL STOCK. OFFICERS. SECTION 1. All applications for stock, or decreases or SECTION 1. The officers, who shall be chosen by the increases of stock, and all payments of or on account of board of directors of the head office, shall be a manager, stock subscriptions shall be forwarded to the head office. who shall l;e one of the directors of the branch bank, and a cashier. They shall hold office during the pleasure of ARTICLE VIII. the head office. BUSINESS HOURS. SEC. 2. Manager.—The manager shall preside at all SECTION 1. The bank shall be open for business from directors' meetings and shall have general charge of the 9 a. m. to 2 p. m. on each day, except Saturdays and branch and shall be officially designated as "Manager Sundays or days or parts of days established as legal Branch." The manager shall, jointly with the holidays. On Saturday the bank shall open at 9 a. m. cashier, have charge of all moneys received or paid out and close at 12 m. on account of the branch bank and shall sign all checks for the payment of money. He shall have custody of all ARTICLE IX. moneys, investments, and collateral held by the branch AMENDMENTS. bank, subject to such rules as the Board may adopt as These by-laws may be amended at any regular directors' to their safety. In all cases where duties of subordinate meeting by a majority vote of the entire board of the head officers of the branch bank are not specifically prescribed office, subject to the approval of the Federal Reserve by the by-laws or the board of directors of the branch Board. bank or the head office, they shall be the duties prescribed by and the instructions of the manager. SEC. 3. Acting manager.—In the absence or disability of The Federal Reserve System and the War.1 the manager, the head office may appoint an acting man- How the Federal Reserve System, created ager, who shall exercise the powers and discharge the duties of the manager; and for such services shall receive four years ago, has stood the test of nearly a compensation to be fixed by the head office. three years of war, four months of which time SEC. 4. Cashier.—Subject to such rules for safety as the the United States itself has been engaged in board of directors of the branch may adopt, the cashier shall the great conflict, is outlined in a statement have custody of all moneys, investments, and collaterals prepared by Gov. Harding, of the Federal jointly with the manager, or with such other employee of the branch as the manager may designate. The cashier Reserve Board. Gov. Harding shows that the shall countersign all checks for the payment of money Federal Reserve Banks met the exigencies of signed by the manager. Ho shall keep the minutes of all the $2,000,000,000 liberty loan transactions board meetings and all committees of the board and perwithout a strain upon their resources, without form such other duties as may be assigned to him by the an advance in discount rates, and that their manager, subject to the approval of the board of directors. total resources now aggregate more than SEC. .5. Acting cashier.—In the absence or disability of the cashier, the board of directors of the branch bank may $2,000,000,000. Gov. Harding's statement folappoint an acting cashier, who shall exercise the powers lows: and perform the duties of the cashier and shall receive a compensation to be fixed by the head office. i From Official Bulletin, July 21. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

AUGUST 1,1917. FEDERAL RESERVE BULLETIN". 589 GOV. HARDING'S STATEMENT. enable them to exchange their gold for Federal Reserve notes and to carry accounts with the During the month prior to the entry of the Federal Reserve Banks for the clearing and United States into the European war the Fedcollection of their checks. The other method eral Reserve Board, recognizing the unsettled chiefly relied upon to effect the purpose of the and disturbed condition of foreign affairs and amendments is that of rendering the system the unusual influences to which domestic and more attractive to State institutions in the financial conditions were subject, devoted belief that they will become members of it. special attention to the problem of imme- The total resources of the reserve banks now diately placing and of maintaining the Federal aggregate over $2,000,000,000, their cash re- Reserve Banks in a strong and liquid conserves being over $1,400,000,000. dition. To this end the reserve banks were encouraged to refrain from making more than SUPPLY OF NOTES INCREASED. very moderate investments in securities. Even with respect to the purchase of commercial In another way the Federal Reserve System paper they were counseled to observe a policy has endeavored to make exceptionally careof conservatism. As a result of the adoption ful preparation for any possible demands that of this plan of action the entry of the United might be brought to bear upon it. The opening of the year had found it with a large States into the war as an active participant stock of Federal Reserve notes on hand, but it found the Federal Reserve Banks and, in consewas deemed a measure of prudence almost to quence, the banking system of the whole treble the available supply, $761,000,000 of country in an extremely satisfactory and now notes being ordered. Moreover, in order strong position. On the 30th of March the to render these notes easily available they reserve banks held against deposits a reserve were distributed throughout the country at the of 82.1 per cent, while the combined national various mints and subtreasuries, where they banks of the country held, on March 5, $813,were held subject to release by telegraph 028,000 of vault reserve, an excess of reserves from Washington upon application of the over legal requirements of $227,861,000. Federal Reserve Bank nearest situated. Not BANK ACT AMENDED. only a note currency, bub a ready moans of distributing that currency without delay to The power of the Federal Reserve System to the points where it was most needed was thus render financial aid has been increased by provided for. recent legislation. The President, on June 21 ^ Since January 1, 1915, the Federal Reserve signed the bill amending the Federal Reserve Banks have been exercising the functions of Act, which in its original form had already fiscal agents, holding the funds of the Treasury passed the House of Representatives on May Department in the 12 Federal Reserve cities, 5 and the Senate on May 9. The broad purother deposits being held in national banks pose of the amendments is that of strengthenoutside those cities. In providing for the ing the gold reserves of the Federal Reserve exercise of this function of "fiscal agent/' the Banks, and this end is accomplished in two Federal Reserve Act, however, contemplated principal ways. Arrangements are made for the possibility of powers much broader than transferring to the Federal Reserve Banks the those involved in the holding of public deposits, vault cash heretofore carried at the option of the banks either in their own vaults or with the LIBERTY LOAN OFFERING. reserve institutions. At the same time the nonmember banks are encouraged to deposit Not long after the declaration of war upon their reserves with the Federal Reserve Banks Germany the offering of the Liberty Loan was by the making of liberal provisions which will decided upon by the Secretary of the Treasury, 3674—17 3 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

590 FEDERAL RESERVE BULLETIN. AUGUST 1,1917. and the question of organization and method of the Federal Reserve System, it further for the placing and distribution of the loan authorized the member banks to act as agents at once presented itself. The Secretary of the for nonmember institutions by rediscounting Treasury determined to employ each Federal the notes of bond buyers who desired to Reserve Bank as the head of a district organ- obtain assistance from their own banks without ization designed for the distribution of the new being obliged to transfer their business to bonds, and in each Federal Reserve district member banks. Savings banks and trust such an organization was quickly developed companies were assured that the board would about the local reserve bank as a center. in every way cooperate with them in avoiding Local bankers and financiers freely gave of shock or disturbance to existing conditions, their time and assistance to the furtherance of and that the Federal Reserve System, stood the work, and in each case the Federal Reserve ready to extend to them reasonable accommo- Bank proved an efficient basis of organization. dation in the event of necessity resulting from The several banks have, under instructions withdrawals made by depositors in order to issued by the Secretary of the Treasury, re- purchase or invest in Government bonds. ceived, subscriptions to the loan and carried on the immense work of detail resulting there- CONFIDENCE IS ESTABLISHED. from, besides taking charge of the deposits in In various other ways also rulings were put banks and general banking relationships growinto effect with the purpose of easing the gening out of the operation. eral monetary and financial situation, the result of which was to establish a general feeling SOUGHT TO AID BANKS. of confidence throughout the country, the The Federal Reserve Board itself, besides banks making loans to their customers at the cooperating closely with the authorities of the 3J per cent rate, paid by the Liberty bonds Treasury Department in efficiently conducting themselves, and obtaining aid from the Federal the loan operations of the Federal Reserve Reserve Banks as they needed it at the same Banks, further sought to develop a general rate. policy that would support and aid the banking Disturbance to the money market was community at large in taking and distributing avoided by permitting funds subscribed by the new issue of bonds. For this purpose it customers of banks to remain on deposit in first established a special rate of 3 per cent those banks until such time as they were per annum for the discount at Federal Reserve needed for Government disbursement. Rates Banks of the direct 15-day obligations of on commercial paper remained stable and member banks secured by the temporary moderate throughout the whole operation, certificates of indebtedness which were issued notwithstanding that it represented a greater in order to anticipate the proceeds of the sale transfer and shifting of funds than had ever of the new bonds. before been attempted in any like operation Carrying further this same policy, it later in the history of the United States. established a 3?j per cent rate of discount at The whole process of selling the bonds, re- Federal Reserve Banks intended for the 90- ceiving subscriptions, transferring them to the day paper of ordinary bank borrowers, thereby credit of the Treasury, and disbursing them enabling the member banks of the system to upon Government requisition has been carried extend accommodation to bond buyers in the through with remarkable ease, and constiassurance that they would be able to obtain tutes a service to the country at large which accommodation from the Federal Reserve would have been out of the question had it Banks by rediscounting these notes. In order not been for the efficient organization and to aid the customers of banks not members operation of the Federal Reserve System. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

AUGUST 1,1917. FEDERAL EESEEVE BULLETIN. 591 The general service performed by the re- money that we carry in New York not being serve system can best be understood when the available as reserve. "At this season of the year nearly all southfinancial ease and quiet that have prevailed ern banks are a little short on reserves, and throughout the country ever since the opening as our checks on the Federal Reserve Bank of the war three years ago are contrasted with are not accepted at par outside of this district the disturbances and uncertainties which have (which compels us to carry a New York acbeen felt in former times in consequence of count in addition), it seems like this is a little hardship on us. events of far less moment than those of the " We feel that it would be only fair to the past three years. Panics or runs upon banks banks for the Federal Reserve Board to have been entirely avoided, while rates of in- arrange to have our checks on accepted terest throughout the countrj7 have been more at par throughout the country, as they have moderate and uniform than ever before. The made our New York account not available as reserve. process of moving the crops, which in past " We would be glad to have your views on years has given rise at times to serious strinthis." gency and high money rates, is now carried The situation referred to by the writer of out without the slightest shock or interference the letter above quoted was, however, anticiwith normal conditions. The banks, in genpated by the Board when it established the eral, enjoy a confidence they could not have interbank method of remittance, already reacquired under any other conditions—a conferred to. This method was especially dedition which is in itself perhaps the best consigned to meet the conditions shortly to arise tribution of the Federal Reserve System to the in which New York accounts would no longer general public welfare during the financial be available as reserve, and which, therefore, strain inevitably resulting from the war. rendered it desirable that the chw ks of member banks on Federal Reserve Banks should be immediately available at par at any one of Remittances of Member Banks. the twelve Federal Reserve Banks that might be selected by the drawing bank. The condi- During the month of June the Federal tions under which the interbank drafts might Reserve Banks, under instructions from the be drawn in accordance with the Board's plan, Federal Reserve Board, put into operation a with sample forms as illustrations, were set system of interbank drafts intended to proforth in the Federal Reserve Bulletin for May, vide all member banks in the several districts page 348. with a satisfactory method of remittance for their own use and that of their customers who desired to send funds to other districts. Exemption from Military Service. The new method of remittance is not yet Exemption for its own employees and those being fully employed, and in some portions of of Federal Reserve Banks from military servthe country there appears to be a misunderice will not be generally asked by the Federal standing concerning it, as shown by the fact Reserve Board. The following letter sent by that some banks find the process of shifting Gov. Harding to all Federal Reserve Banks on reserves required under the amendments to July 12 covers the Board's action in the matthe Federal Reserve Act, which became law on ter: June 21, a hardship. One letter recently received by the Board states the case as The Federal Reserve Board has, during the follows: past few weeks, received communications from several Federal Reserve Banks asking if any "•As you know, at the present time we are action could be taken looking toward the excompelled to carry our reserves with the emption of their employees from the operation Federal Reserve Bank and in our vault, of the Federal draft for military service. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

592 FEDERAL RESERVE BULLETIN. AUGUST 1,1917. The Treasury Department has more recently 1. Upon receiving a request for a blank form referred to the Board letters and telegrams upon which to make application for memberfrom the governors of most of the Federal Reship in the Federal Reserve System, the serve Banks asking if this exemption could be Federal Reserve Agent will instruct the apsecured on the ground that the banks are fiscal agents for the Government and. are doing a plicant institution— large amount of additional work incident to (a) To return the application and required their duties as such, and in connection with exhibits, when completed, to the Federal the bond issues. Reserve Agent. While the Board appreciates the importance (b) To request; .the State bank Supervisor to of protecting the organizations of the Federal Reserve Banks, it is unable, after very careful send to the Federal Reserve Agent two certiconsideration, to find any grounds upon which fied copies of the report of its last examination, to base a request for the exemption of em- together with a certificate based upon such ployees of Federal Reserve Banks. The law report, a form of which is hereto attached. does not authorize specific exemption in favor (c) To furnish to the Federal Reserve Agent of the employees of Federal Reserve Banks or of the Federal Reserve Board, and while the banks the information called for in the attached memwill doubtless suffer some inconvenien.ee, just orandum under "General information desired.'7 as member banks, insurance companies, and 2. The Federal Reserve Agont will--mercantile concerns will, the Board believes (a) Immediately notify the Federal Rethat the executive officers of the Federal Reserve Board of the receipt of the application. serve Banks should, as a rale, release cheerfully any employees who may be drawn under (b) Submit the application to counsel of the the selective draft, filling their places either Federal Reserve Bank for his certification. with men who are beyond the draft age. or with (c) If the Federal Reserve Agent and the competent women, as has been done to such governor of the Federal Reserve Bank cona great extent in all belligerent countries. The Board does not see how it can take the sider the standard of State examinations to be position that Federal Reserve Banks are so satisfactory, and a coypj of the last report has much in a class by themselves that general been furnished, together with the certificate exemption in their favor should be requested, above mentioned, the Federal Reserve Agent and it does not believe that such a request will submit the application and other papers in could be granted if made. The Board realizes the possibility that some employees may be connection therewith to a committee composed drawn whose services are especially valuable oi himseli, the governor of the Federal Reserve to the banks, and in such specific cases it Bank, and at [east one other member of the would suggest that application be made for board of directors. No class A director whose exemption. bank is in the same city or town as the applying bank or trust company shall be a member of Membership Applications. such committee. In. view oi the increasing number of State 3. If a special examination is deemed necesbanks and trust companies which are applying sary by the committee above mentioned, or for membership in the Federal Reserve Sys- | later considered desirable by the Federal Retem, the Federal Reserve Board has prepared a serve Board, the Federal Reserve Agent digest of the procedure which is to be followed should proceed— by Federal Reserve Agents in connection with (a) To arrange with the State supervisor to the applications of institutions which desire to have the applicant bank examined by a State be considered for membership. The digest examiner, with the request that he submit a is intended to furnish a complete outline of report in duplicate and a certificate of condithe various steps taken in passing upon such tion; or applications, under existing practice, and to (6) To arrange with the State Supervisor to afford to applicant banks a clear idea of the have the applicant bank examined by a State tests applied in determining eligibility. examiner jointly with an examiner designated Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

AUGUST 1, 1917. FEDERAL RESERVE BULLETIN. 593 by the Federal Reserve Bank or the Federal I mendation of the Reserve Bank committee, to Reserve Board. The State supervisor should j the Federal Reserve Board. The recommenbe asked to file two copies of the report of ex- \dation should be signed by each member of the amination. If the report of examination to be ]committee. One copy of the report of examfurnished by the State authorities is volumi- j ination may be retained for the files of the nous, a digest containing the material items will Federal Reserve Bank. be satisfactory. The report or digest should 5. The Federal Reserve Board will, on the contain the examiner's comments and criti- basis of the application and information subcisms, a complete list of investments, giving mitted therewith, and the recommendation of book and current values, based upon the last | the Reserve Bank committee, approve or disavailable quotations, a memorandum of direct approve the application. and indirect liabilities of officers and directors, 6. The Federal Reserve Agent will be duly and a memorandum of outside corporations advised as to the action taken by the Board. under the control or operated in behalf of the Duplicate copies of letters addressed to appliapplicant bank; or cant banks will be transmitted to the Federal (c) To arrange to have an examination made Reserve Agent. by a member of the- staff of the Federal Reserve FORM 8-1.---Examination.- oj Slate banks or trust companies. Bank who has previously been designated as a special examiner by the Federal Reserve Board. CERTIFICATE OF EXAMINER. A form of certificate for use by the examiner is ] hereby certify that T have been duly -T . J'{\ by hereto attached. Suggestions as to the points to mako an examination to be considered in connection with special of the affairs and conditions of the examinations will be sent on request to the , that on the day of , 191... I exmembers of the staff who have been designated amined fully into the books, papers, and affairs of the said as special examiners. If not possible to obtain corporation, arid that the annexed report shows its true State examination forms the report should be condition to the beat of my knowledge and belief. I further certify, from my knowledge of its affairs based made on blanks used by the national examinupon such examination, that such corporation is solvent ers. An investigation made hy a representaand its capital stock unimpaired. tive of the Federal Reserve. Bank should cover Dated a detailed examination and report of the in- (Name of Examiner.) vestments, loans, and discounts, with particular attention paid to the credit standing of bor- SUGGESTED FORM OF LETTER OR CERTIFICATE TO BE SIGNED BY THE STATE BANK SUPERVISOR. rowers and the valuation of investments and collateral; or An examination of the affairs of the was made under my direction on (d) If the applicant bank is subject to peri- From, my knowledge of its affairs, based upon the report odical examinations by a clearing house examof such examination and upon subsequent reports of coniner, and a comparatively recent examination dition made to me, it is my opinion that the bank is solhas been made, the Reserve Bank committee vent, its capital is unimpaired, and that the report filed by may authorize- the applying bank to file the the examiner as of shows its true condition at that time, to the best of my knowledge and report of such examination, with a memoranbelief; and further, it is my opinion that there has been dum of the material changes to date of applino material change in the condition of the institution cation. since the examination made by my department. 4. When the Reserve Bank committee have- GENERAL INFORMATION DESIRED. considered the matter and reached a conclu- 1. Bank filing application is requested to communicate sion, the Federal Reserve Agent will forward with the State bank supervisor requesting that he forward the application and all papers in connection to the Federal Reserve Agent a copy of the report of the therewith, together with the report and recom- last examination. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

594 FEDERAL BESEBVE BULLETIN. AUGUST 1,1917. 2. Copies of all letters of criticisms (if any) received of loan, maturity, prior liens, location of property, valuafrom the bank commissioner or State examiner in connec- tion, when and by whom appraised. tion with last two examinations. State what action has 9. Real estate owned: Give location of property, book been taken. value; original cost; prior lien, if any; estimated value; 3. General character of business in the community when and by whom appraised; how and for what purpose served by the institution. acquired. 4. State law limitations: Unsecured loans; real estate 10. Investments: List in detail, giving name of issuing loans; loans on other collateral; acceptances; investments corporation, par value, book value, rate of interest or in securities; loans upon bank stock; real estate owned. dividend (date of last payment), estimated present value. 5. Memorandum.—Names of corporation or other con- Please give latest information as to securities upon which cerns owned or controlled by or operated in the interest of interest is in default. If bank owns securities of smal] the applying institution. private or local corporations, inclose with this memorandum a copy of the latest financial statement issued by such 6. List of officers and directors; address; number of corporations. shares owned: business; firm or other outside affiliations. 11. Notes and bills rediscounted: Bills payable and List of loans to officers, directors, and employees. Arcertificates of deposit representing borrowed money. range loans in groups showing indebtedness of each official Give a memorandum of present indebtedness; from whom as maker, indorser, or guarantor; loans to firms and corpoborrowed; rate; maturity; assets pledged as security for rations in which he is interested either as member, officer, indebtedness: totals only. or director; loans to relatives and business associates of 12. Assets pledged as security for deposits or other purofficers and directors; loans collateraled by securities isposes (except money borrowed); give particulars. sued by corporations in which directors or officers are in- 13. Assets and liabilities which are not entered as such terested. upon the books of the banking institution. Give: Borrower: amount; director interested. 14. Money borrowed by officers and directors in the 7. General information as to loans: interest of the bank under examination. (a) Demand loans, upon which no interest has been paid 15. Contingent liabilities: Nature and extent; on bills far six months or more. indorsed and sold: guaranties; notes and securities pledged (6) Notes and other loans in default six months or more or sold with agreement to repurchase: all other. and which are not secured or in process of collection, 18. Estimated losses or deductions from assets: (c) Other past due notes and loans. Include overdrafts. Exclusive of loans secured by agricultural commodities Estiand live stock. mated Doubtful. (d) Notes renewed from time to time with interest added. losses. a, b, c, d. Give name; borrower; amount; maturity; Loans security, if any; estimated loss. I n vestmpnts Other loan information (except real estate loans): Furniture and fixtures (e) Loans to officers of other banks: Name; amount; bank identified with; security, if any. Total (/) Loans on own bank stock: Amount of loan; shares held. 17. List of balances due from and to other banks. {g) Large lines (not previously listed) in excess of 3 18. List of affiliated banking institutions. per cent of capital and surplus: Give name of borrower, On the following page is furnished a list of business, post-office address, amount of liability, remarks. the State institutions now members of the 8. Real estate loans: List of loans in excess of 3 per cent Federal Reserve System. of capital and surplus. Give name of borrower, amount Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

AUGUST 1,1917. FEDERAL B-ESERVE BULLETIN. 595 List of State Member Banhs. Federal Reserve Bank. Location. Bank. Continental Trust Company Washington, D. C.. Richmond. The Savings Bank of Richmond Richmond, Va Do. Bank of Woodruff Woodruff, S.C Do. Sullivan Bank & Trust Co Montgomery, Ala.. Atlanta. Central Trust Co., of Illinois Chicago, 111 Chicago. Bank of Wisconsin Madison, Wis Do. Mercantile Trust Company St. Louis, Mo St. Louis. First State Bank Dalla3 Tex Dallas. ; First State Bank Bonham, Tex Do. Citizens State Bank Memphis, Tex Do. Farmers & Merchants State Bank Edgewood, Tex Do. Bank of Eufaula Eufaula, Ala Atlanta. First State Bank Savoy, Tex Dallas. First State Bank Hamlin, Tex Do. First State Bank Wolfe City, Tex... Do. First State Bank Bremond," Tex Do. Broadway Trust Company New York City New York. Fidelity Trust Company. Kansas City, Mo... Kansas City. Old Colony Trust Company Boston, Mass Boston. Badger State Bank Milwaukee, Wis... Chicago. Fort Scott State Bank Fort Scott, Kans.. Kansas City. German-American Bank Minneapolis, Minn. Minneapolis. Elmhurst State Bank Elmhurst, 111 Chicago. Fruit Growers State Bank Saugatuck, Mich... Do. Bank of Lewellen Lewellen, Nebr... Kansas City. Central State Bank Dallas. Tex Dallas. Bank of Hartsville Hartsville, S. 0. .. Richmond. Commercial Trust & Savings Bank Joliet, 111 Chicago. Commercial & Savings Bank Albion, Mich Do. Guardian Trust & Savings Bank Toledo, Ohio Cleveland. Merchants & Farmers Bank Oheraw, S.C Richmond. Peoples Bank Sumter, S. 0 Do. First State Bank DeKalb, Tex Com Exchange Bank New.York City.... New York. American Trust & Savings Bank Birmingham. Ala.. Atlanta. Bankers Loan & Trust Company Sioux City, Iowa... Chicago. B ank o f I o t a Iota, La. Atlanta. Peoples Trust & Savings Bank Clinton, Iowa Chicago. Commonwealth Trust Company Boston, Mass Boston. Bank of Montclair 1 Montclair. N. ,T New York. Cleveland Trust Company Cleveland, Ohio. .. Cleveland. St. Louis Union Bank St. Louis, Mo St. Louis. Farmers State Bank Easson, Minn Minneapolis. Mississippi Valley Trust Co St. Louis, Mo St. Louis. Hettinger State Bank Hettinger, N. Dak. Minneapolis. Winchester Trust Company Winchester. Mass.., Boston." Commerce Trust Company Kansas City, Mo.. . Kansas City. International Trust Company Boston, Mass Boston. International Bank '. St. Louis, Mo St. Louis. Standard Trust & Sayings Bank Chicago, 111 Chicago. German Savings Institution St. Louis, Mo St. Louis. St. Joseph Valley Bank Elkhart, Ind Chicago. Cofbnan, Dobson & Company, Bankers (Inc.). Chehalis, Wash San Francisco. Merchants Loan & Trust Company Chicago, 111 Chicago. Guardian Savings & Trust Company. Cleveland, Ohio... Cleveland. German Insurance Bank Louisville, Ky St. Louis. Fitchburg Bank & Trust Company Fitchburg, Mass Boston. Bankers Trust & Savings Bank Minneapolis, Minn. Minneapolis. Peoples Bank St. Paul, Minn. Do Northern New York Trust Co Watertown, N. Y. New York. Marshall & Ilsley Bank Milwaukee, Wis.. Chicage. Southwest State Bank Wichita, Kans Kansas 'jCity. International Trust Co Denver. Colo Do; . Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

596 FEDERAL RESERVE BULLETIN. AUGUST 1,1917. Reasons Why One State Institution Entered the within the last two years ? Interest rates have Federal Reserve System. been reasonably uniform in all the districts; discounting has been equally easy in every By BRECKINRIDGE JONES, President Mississippi Valley district; the banks have been known to be in Trust Co., St. Louis, Mo. reasonably competent hands; the expense has Since the Mississippi Valley Trust Co. became been, we might say, infinitesimal, when coma member of the Federal Reserve System, on pared to the benefits received, and in the year May 4 last, I have been asked many times as 1916 the regional banks, as a whole, earned to why we went into the system, after having over 5 per cent on their stock. I believe now remained out so long and after having pointed no one* doubts that the regional banks hereout repeatedly many objections to the system. after will earn a return of approximately in I am pleased to comply with the request for excess of 6 per cent on their stock. The 12 an answer to that question. district banks have shown that they are closer At the time of the passage of the Federal and more responsive to their several districts Reserve Act there were many broad objections than a central bank could have been. It is made to the system. A number of these objec- now clear that the 12 banks, through the unitions I thought "had merit, and as to whether fying influence and power of the Federal or not any others had merit could only be Reserve Board, can operate, in effect, as a unit. determined by noting the working of the act. The Federal Reserve Board at Washington is State banks and trust companies were not in close touch with the several regional banks, required to come in at the start, and I felt that tends to keep them all in harmony, and has the wiser policy was to stand by and give the demonstrated its capacity, wisdom, and consystem a chance to demonstrate its right to servatism, and yet have you ever heard one live. In the light of experience since the act single complaint as to the Board's being overbecame effective, a mere statement now of dominant, arbitrary, or in any unreasonable those objections is an answer to the question, way interfering with any one of the 12 regional it being so evident that there was no merit banks i in the" objections. It would not be out of (2) It was also urged that the Federal place to review some of these. Reserve Board at Washington and the several regional banks would get into the hands of FORMER GENERAL OBJECTIONS AND HOW THEY politicians and become political machines, or, HAVE BEEN REMEDIED. at least, be infiltrated with political influence. Does anyone now claim that there was any (1) It was vehemently urged that the re- justification for such an objection, in the light gional or district plan of banks would not of experience ? work; that they could not produce uniformity (3) It was also objected that the act did of interest rates or equal facilities for dis-not define paper eligible for rediscount with counting; could not make uniform the banking the Federal Reserve Banks; that the Federal system of the country; that they could not Reserve Board, with the power given to make be made to work together as a unit; that com- such definition, would make a definition unpetent men of broad view could not be secured fair or too restrictive; that the banks, espeto officer so many district banks; that in any cially the State banks and trust companies, did event, even if the district idea were approved, not have and would not have on hand the the number of regional or district banks was kind of paper eligible for rediscount; that too many—instead of 12, there ought not business in America had developed along the to be certainly more than one-half or one- line of single-name paper; that two-name tiurd that number—and many claimed that paper or acceptances would not come into the district system would be inevitably a failure use; that acceptances could not be popular and that nothing but a centra,! bank would without a general discount market; there was answer the purpose; that the 12 banks would no such general discount market and it was be unreasonably expensive in administration too long a shot to expect such a change in and that they would not earn a fair dividend American business methods as to make such on their stock; that the 12 banks would a general discount market possible, and that hardly get started before there would be a without such a discount market the Federal demonstration of their inefficiency and a popu- Reserve Act could not be a success; that aclar clamor to reduce the number. Has any- ceptances were restricted by the act to the one heard much of any of these objections importation and exportation of goods; that Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

AUGUST 1,1917. EEDEKAL RESERVE BULLETIN. 597 the great interior parts of the country had order to secure collection facilities, has been no such paper at alt, and that the acceptance reduced. The rules relating to collection business was generally impracticable, and that, charges in a number of the clearing houses of even if an acceptance market were developed, the country have been made more uniform and the restrictions on a member bank to 50 per more nearly to conform to the Federal Reserve cent of its capital in acceptances would pre- System. After a thorough discussion of this vent the development of the system. whole check collection matter in Congress, the In the first place, answering the objection Hardwick amendment was modified and a regarding the lack of paper eligible for redis- practical reindorsement given to the Federal count, the tendency will be for the State banks Reserve collection system. and trust companies to gradually secure the (5) It was also urged that the banks of the cooperation of their customers and change their country were so opposed to having rediscounts bills receivable into paper that is eligible for in their statements that they would not avail rediscount. This tendency is not fraught with themselves of the facilities of the Federal Remuch difficulty and will produce results of great serve System and would use the rediscounting value. Secondly, while the general acceptance only in "emergencies." In all the reserve and market has not, by any means, fully developed, central reserve cities, and in many of the yet the beginnings have been laid and its firm country banks, there is a distinct tendency now establishment and growth assured, as the figures for the member banks to rediscount freely. will show. In 1915 the Federal Reserve Banks The fact is, banks are finding that when they bought in the open market $64,845,000 accept- show the item " Bills rediscounted with the ances, while for the 10 months ending October, Federal Reserve Bank" on their statements, 1916, they had bought $270,597,000 accept- the general public consider it rather a recomances, or more than four times the amount pur- mendation. As one depositor expressed it, chased the previous year. These were not all "That item tells me two things about my the open-market transactions, as many banks bank. First, it has loans that measure up to also bought acceptances. Under the powers of the standard oi the Federal Reserve Bank; an amendment to the act, the Federal Reserve second, I do not believe the Federal Reserve Board has given permits to a large number of Bank would have taken its rediscounts if it banks to make acceptances up to 100 per cent were not in good condition." Member banks of capital and surplus, and the amendment to are beginning to realize that they can with the act has broadened it so as to permit ac- safety lend down very close to their legal receptances for domestic shipments. The pre- serve, and thus realize an increased profit from diction is made with confidence, based on the being in a position to have their funds almost figures above given, that there will be a rapid aU of the time employed at the highest current development of business in acceptances and of interest rates. This tendency will gradually the realization of a general discount market, extend to a larger number of member banks in and nowhere do you now hear it urged that the the smaller cities, and, within a reasonable absence or alleged impossibility of a general time, will likely be popular with all the member discount market will in any measurable degree banks throughout the country. interfere with the success of the Federal Re- (6) It was also objected that the transfer of serve System. reserves from the city banks to the Federal (4) It was also urged that the check collec- Reserve Banks would cause such a drastic tion system contemplated by the Federal Re- readjustment of banking conditions as to serve 'Act would be unpopular and would be injure or impair the credit machinery of the impracticable, and yet we find that not only country. What are the facts ? Under the act, is this collection system in vogue in the nearly these transfers did not have to be completed 8,000 member banks, upon whom it is, in some until November next, and yet transfers have sense, compulsory, but there are over 7,000 been made so easily that Congress has now State banks and trust companies that have anticipated the day on which these transfers voluntarily entered the collection system, and must be completed, and the transfers have both member and these nonmember banks find been accomplished, in the main, practically that the amount of " float;; has been reduced, without the slightest shock to the banking the expense of collection has been lessened, and communities. that the amount of balances necessary here- Thus it is seen that experience has shown that tofore to be carried with correspondents, in very many of these criticisms of the Federal 3674—17 4 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

598 FEDEKAL RESERVE BULLETIN. AUGUST I, 1917. Reserve Act have been really without founda- vide that State member banks and trust comtion, and therefore it seems that as far as those panies are in no way subject to the comptroller's objections are concerned the state banks and department. trust companies might well feel that the system (c) It was objected that the State banks and has demonstrated itself and that they can trust companies, if they got into the system, safely become members of it. It is entirely had no way of getting out. The Federal reasonable to suppose that a remedy will be Reserve Board answered this objection by found and applied where, in the operation of making a rule that a State bank or "trust comthe act, defects are hereafter developed. pany could get out on one year's notice, under certain provisions, and this, also, has now been FOUMEE, SPECIAL OBJECTIONS OF STATE BANKS crystallized into law by the recent congres- AND TRUST COMPANIES. sional amendment, making the period of notice 6 months instead of 12 months. In an article such as this it would not be possible to go into a discussion of the whole (d) The most serious objection to the act, from range of the material features of the Federal the standpoint of the State banks and trust Reserve Act, so with the above references to companies, was that they found that section 22 some of the more evident objections that of the Federal Reserve Act practically prohibwere urged we may mention a few of the special ited an officer or employee, director or attorney objections that were urged by state banks and of a member bank, from transacting any busitrust companies and see how they have been ness with the bank. This may be stating the met. matter too broadly, but the general effects only are in contemplation. The penalties in this (a) The Federal Reserve Board at first section are fine and imprisonment. It is claimed for itself the right to prescribe what thought that the Federal Reserve Board has part of the charter powers of a State bank or had more trouble over this section than any trust company such an institution should other section of the act. The Board did not exercise if it became a member of the Federal feel that it had any right, by regulation, to Reserve System. That position was fundamodify or define the express act of Congress, mentally objectionable to the State banks and but upon the whole subject being fully pretrust companies, and, upon a thorough presented to the Board, the result was the main sentation of the matter to the Federal Reserve objections were met by the Board's recom- Board, the Board, by regulation, practically mending an amendment to the act, providing abandoned that position and left the matter that interest might be allowed on balances of with a declaration that if the charter powers directors and attorneys and loans made to diof a State bank or trust company were such rectors and attornej^s on the express written as in the opinion of the Board to interfere with authority of a majority of the board of directors. the liquid condition of the State bank or trust I take it that this could be accomplished by a company, there might be a, limitation put on general resolution. While the prohibitions of the State bank or trust company's facilities this section apparently are not receiving special in rediscounting. So that objection has been notice from the authorities at this time, yet it removed and the matter simplified by the would be wise for any State bank or trust comrecent congressional amendment. pany, before it enters the system, to have sec- (6) State banks and trust companies extion 22 referred to its attorney for a report. pressly objected to bringing themselves under the regulatory powers of the Comptroller of With these main objections to the system the Currency. By the amendment to the being answered, with our country being at war, Federal Reserve Act of June 21, 1917, State there appeared to be an overpowering obligabanks and trust companies which are members tion on the' part of a strong State bank or trust are subject to examinations made by direction company, in reserve and central reserve cities, of the Federal Reserve Board or of the Federal at least, to cooperate with our Government in Reserve Bank by examiners selected or ap- its financial system and add all it could to the proved by the Federal Reserve Board. Exami- harmony of action and unity of purpose of the nations "By State authorities may be accepted. American people. Reports of condition and of payments of divi- An additional incentive for a State bank or dends are to be made to the Federal Reserve trust company to go into the Federal Reserve Bank instead of the Comptroller of the Cur- System, and a feature that should not be overrency. In brief, the recent amendments pro- looked, is the distinct added prestige that comes Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

AUGUST 1,1917. EEDEKAL RESERVE BULLETIN. 599 from being a member and under Federal super- members. You do not have to surrender your vision. There is a tendency on the part of the State charter, but join and be a State bank public to give value to membership in the Fed- member. In short, let us "Get in the band eral Reserve System, and this tenclency will be wagon/' and do it voluntarily. Let me hear greatly accentuated as time goes along. from you. Very respectfully, yours, G. R. HITT, Commissioner. Membership in the Federal Reserve System. The Department of Banking of the State of The Liberty Loan and Its Successor. Idaho has sent out to State institutions in that State the following circular relative to mem- The following extracts from the Official Bulbership in the Federal Reserve System: letin, which is published daily under order of the President by the Committee on Public Infor- NOW IS THE TIME TO JOIN THE FEDERAL RESERVE mation, have to do with the Liberty Loan and SYSTEM.. other prospective issues: To the Cashier: When the Federal Reserve System first went OUR FINANCIAL STRENGTH.1 into operation there were a number of apparent Two billion dollars is a tremendous sum of reasons why State banks and trust companies money. Yet the American people have loaned did not want to become members. From time their Government that much and have barely to time a number of amendments to the act touched their resources. The money was have been made and very recently Congress has raised so easily it only seemed to show the treenacted some very important amendments mendous financial strength of the country. which, in my opinion, make very attractive It is not one-tenth of our bank deposits. It inducements for all banks in the United States is less than one-eighth of our bank loans for one to become members. year. It was less than one-half of our national During the past two years I have urged the savings for 1916 and only 5 per cent of our banks under the supervision of this department national income for that year according to estito get their affairs in such shape that they could mates. readily go in when the proper time came. That Not only is this first Liberty Loan bond issue time is here now. The exigency created by war of $2,000,000,000 much larger than the initial now makes it the imperative, patriotic duty of loans of any of the other nations engaged in the every bank and trust company to join in with war but it was raised in much less time with the other member banks and make one solid, much less effort and was subscribed to hj a compact banking system. Every dollar of gold vastly greater number of individuals; this, too, should be promptly deposited in the Federal when danger was far from us and the Nation in Reserve Banks of each district, where it will be a calm frame of mind. ready and available for issuance of Federal The coming second issue of Liberty Loan Reserve notes. There is to-day $725,000 in bonds, with the great mass of the people of the gold coin and $300,000 in gold certificates held country much better educated as to Governin the vaults of the State banks of Idaho which ment bond issues and Government finances in should be on deposit with tho Federal Reserve general, it is reasonable to suppose, will be dis- Bank of San Francisco. The reasons why you posed of with even greater success than the should join the system and the inducements initial issue. that are now offered you to join are too numer- The oversubscription to the initial issue of ous for me to mention in detail in this letter. over a billion dollars augurs well for the success The two outstanding ones are patriotism and. of the next loan.. There «are several million good business. more investors in Government bonds in Amer- Sit down and give this your careful and undiica than there were a month ago. Then there vided attention and write this department, askwere some 300,000 holders of United States ing any questions you feel like, and we will be bonds; now there are over 4,000,000. And the ver}' glad to assist you in any way we can in thrill of the thought of our soldiers in France helping you to become a member of the Federal will rally the people to the Nation's call. Reserve System without further delay. Let us make Idaho the banner State for State bank i Official Bulletin, July 11. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

600 FEDERAL RESERVE BULLETIN. AUGUST 1,1917. THE NEXT LIBERTY LOAN.1 The following statement issued by the Secretary of the Treasury was published in the It recently was explained before the New York State Bankers' Association that Eng- morning newspapers of July 19: land's first war loan of one billion and three- There seems to be some misapprehension as quarters was subscribed to by 100,000 subto the conditions affecting the exchange of scribers. To her last great victory loan of liberty bonds and of interim certificates of $5,000,000,000 in 1917 there were 8,000,000 different denominations. It is of considerable subscribers. What, it was asked, was it that importance to the numerous people throughout caused this tremendous increase in national inthe country who have subscribed for $50 or $100 terest, this wonderful financial support from bonds that this misapprehension should be reevery part of the nation in the prosecution of moved. To illustrate the confusion which the war ? It was thrift, the habit of saving and seems to exist, there appeared in a New York investing; a habit formed by a whole people paper this morning the following statement: working with one definite end in view. "The $50 bonds have been selling much lower America's first war loan was much larger than than the higher denominations, and this has England's first loan and was subscribed to by been due to the $1 fee the Government collects a, great many more people. America's next on every transfer,* which in the case of the $50 issue of Liberty Loan bonds, which later will be bonds is comparatively heavy. A person who offered for sale, it is believed will be subscribed purchases $1,000 in $50 bonds, for example, is for by a greater number than subscribed to Engobliged to pay a fee of $20." land's last loan. Thrift and American patriot- This statement is erroneous. ism will accomplish this result—thrift because In the first place, no definitive bonds have as the people have been awakened to its necessity yet been delivered, and there is no charge whatand patriotism because it has been aroused in a ever for the exchange of interim certificates of higher measure by the fact that our soldiers different denominations, nor will there be any soon will be fighting on the battle front in charge, when the definitive bonds are ready, for Europe. the issue of such bonds, of whatever authorized denominations may be requested, against sui> MONEY NOT TIED UP.2 render of an equal aggregate amount of fullpaid interim certificates of whatever denomi- Money invested in Liberty Loan bonds is in nation. There will be no charge, for instance, no way "tied up." So far as the Government for the exchange of ten $100 certificates for one is concerned the money paid in for these bonds, $1,000 bond, nor for the exchange of one $1,000 including that loaned our allies, is being and is certificate for ten $100 bonds. Consequently to be spent in this country and therefore im- there is no possible reason for any difference in mediately paid back to the people for labor and price at the present time on account of the products of the United States. So far from different denominations* of the interim cerbeing "tied up" this money is in effect never tificates. withdrawn from circulation. In the second place, the provision of Depart- So far as the investor in the Liberty Loan ment Circular No. 78, dated May 14, 1917, in bonds is concerned his money is not "tied up," relation to the interchange of bonds of different since there is always a ready market for United denominations, is to the effect that such inter- States Government bonds. Everybody knows change will be made "upon payment, if the this. As shown by the subscription, the de- Secretary of the Treasury shall require, of a mand for Liberty Loan bonds exceeded the sup- charge not exceeding $1 for each new bond ply 50 per cent. This creates an immediate issued upon such exchange." The Secretary of market for the Liberty Loan bonds. Another the Treasury has not determined whether, issue will be offered to the people, the announce- when the definitive bonds have once been ment of which will b*e made by Secretary of the issued, to require the payment of any charge Treasury McAdoo in due course. The oversub- for the exchange of bonds of different denomiscription of the first issue is an indication of nations, nor, if required, what the amount of the what may be expected for the second issue, charge shall be; but in any event the charge can which it is hoped will meet with a larger number not exceed $1 for each new bond issued upon of subscribers and a greater sum subscribed. the exchange. Thus, upon surrender of twenty $50 bonds for exchange for one $1,000 bond the i Official Bulletin, July 12. 2 Official Bulletin, July 16. maximum possible charge for making the ex- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

AUGUST 1,1917. FEDERAL RESERVE BULLETIN. 601 change would be $1 (since only one new bond LITERAL CONSTRUCTION ESSENTIAL. would be issued), instead of $20, as stated by the newspaper referred to. Like every exemption from taxation, this To summarize: The fact is that at present provision must be literally construed and can there is no charge; that there will be none until not be extended beyond its precise terms. It after the interim certificates have been ex- protects an owner of these bonds from any tax changed, free of charge, for bonds of whatever of whatever character, except estate or inheritauthorized denominations the holders desire, ance taxes, levied upon them by reason of his and that thereafter a person making an ex- possession and ownership; but a tax levied change of bonds (not interim certificates) for upon one's net income or annual gain can not bonds of different denominations might, if the be evaded because the income or gain happens Secretary of the Treasury should require it, be to be liquidated by the delivery of a certain obliged to pay an amount which could not number of these bonds or other nontaxable exceed $1 for each new bond issued upon such securities. Such a tax is upon the income itself exchange, the amount of which charge would as an entirety and not upon the specific articles be quite unaffected by the number or denomi- into which this income is finally transmuted. nations of the old bonds surrendered for When these bonds, therefore, are used as a exchange. medium of payment, whether in the discharge of a private debt or a corporate dividend, the. profit or gain to the recipient is nevertheless Income Tax on Funds Invested in Liberty subject to income tax. Similar principles control in answering your Bonds. second question. I assume that in speaking of The Treasury Department has made public "excise taxes, franchise taxes, and other corporation taxes" you refer to those taxes which the following opinion of the Attorney General are laid not upon the property of a corporaon the exemption from income taxes of divition by reason of possession or ownership, but dends paid in Liberty bonds: upon the value of the exercise of corporate privileges, a value which may be measured by The Honorable the SECRETARY OF THE TREASthe size of its annual income, the amount of its URY. capital stock, or such other standard of meas- SIR: Pursuant to section 356 of the Revised urement as the taxing power may select. Statutes you ask my opinion upon the following questions arising under the administration of CITES SUPREME COURT RULING. your department: 1. Whether the stockholders of a corpora- Such a tax, for instance, was the special extion receiving a dividend declared payable and cise tax upon corporations under the act of distributable in bonds issued under the act of August 5, 1909 (36'Stat., 11, 112), discussed by Congress approved April 24, 1917, will have to i the Supreme Court of the United States in the pay an income tax. j case of Flint v. Stone Tracy Co. (220 U. S., 107), 2. Whether a corporation owning these in which the court said: bonds would be to that extent exempt from "It is therefore well settled by the decisions excise taxes, franchise taxes, and other corpo- of this court that when the sovereign authority ration taxes of the United States and of the has exercised the right to tax a legitimate subseveral States. ject of taxation as an exercise of a franchise or I am of opinion that an affirmative answer privilege, it is no objection that the measure of must be returned to the first question and a taxation is found in the income produced in negative answer to the second. part from property which of itself considered is The act of April 24, 1917, provides as to nontaxable. Applying that doctrine to this the bonds thereby authorized that "the prin- case, the measure of taxation being the income cipal and interest thereof * * * shall be of the corporation from all sources, as that is exempt, both as to principal and interest, from but the measure of a privilege tax within the all taxation, except estate or inheritance taxes, lawful authority of Congress to impose, it is no imposed by authority of the United States, or valid objection that this measure includes, in its possessions, or by any State, or local taxing part at least, property which as such could not authority.'' be directly taxed." (P. 165.) Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

602 FEDERAL KESEUVE BULLETIN. AUGUST 1, 1917. The special excise tax levied upon corpora- j In order that the transfer of increased baltions by the act of September 8, 1916 (39 Stat., j ances to the Federal Reserve Banks by country 756, 789), and measured by the fair value of | banks and reserve city banks may be made their capital stock, is a tax of the same general j with the least inconvenience the Federal character, imposed with respect to the carry- j Reserve Board has suggested that if the reing on or doing business by such corporations, | serve increases required under the new law and the rule laid down in the case of Flint v. \ are provided by reserve city banks and country Stone Tracy Co. applies equally to it. Quoting j banks not later than July 15, and the reserve again from that decision: •;carried with the Federal Reserve Banks are "* * * The distinction lies between the maintained meanwhile at not less than the attempt to tax the property as such and to percentage heretofore required, the Federal measure a legitimate tax upon the privileges Reserve Banks may omit for this intervening involved in the use of such property." (P. 163.) period the imposition of penalties for reserve Respectfully, deficiencies against those national banks which (Signed) " T. W. GREGORY, shall not before July 15 bring their reserve Attorney General. balances with their reserve banks up to the full percentage required by the new law. A blank form is inclosed for your guidance Reserves of National Banks. in computing reserve under the requirements set forth above. Reserves of national banks and the manner in which they should be computed was the Computation of reserve to be carried with the Federal Reserve Bank by all member banks located in reserve cities not central reserve cities. subject of a letter sent by the Comptroller of the Currency to all national banks on July No. of Bank Report of the reserve of the. located at , State of 6. It is reprinted below: at o'clock .. m , 191... To the CASHIER: \ DEMAND DEPOSITS. The amendments to the Federal Reserve Act, approved June 21, 1917, require all 1. Deposits, other than United States Government deposits, payable within 30 days $. national banks to keep their reserves only in 2. Balances due to banks other than Federal Reserve Banks S the Federal Reserve Bank of their respective Less: districts, as follows. 3. Balances due from banks other than Federal Reserve Banks S Country Banks.—Seven per cent on demand 4. Checks on other banks in the same place deposits; 3 per cent on time deposits. 5. Exchanges for clearing house Reserve City Banks.—Ten per cent on de- Total deductions (items 3, 4, and 5) mand deposits; 3 per cent on time deposits. 6. Net balance duo to banks1 Central Reserve City Banks.—Thirteen per cent on demand deposits; 3 per cent on time 7. Total demand deposits (items 1 and 6) deposits. TIME DEPOSITS. Demand deposits within the meaning of this 8. Savings accounts (subject to not less than 30 Act comprise all deposits payable within 30 days' notice before payment) 9. Certificates of deposit (subject to not less than 30 days. days' notice before payment). Time deposits comprises all deposits which 10. Other deposits payable only after 30 days., can not be withdrawn within 30 days, all 11. Postal savings deposits 12. Total time deposits (items 8,9,10, and 11).. savings accounts and certificates of deposits which are subject to not less than 30 days' 10 per cent of demand deposits (item 7). 3 per cent of time deposits (item 12) notice, before payment, and all postal savings Total reserve to be maintained, with Federal deposits. Reserve Bank , Government deposits, other than postal Balance on deposit with Federal Reserve Bank savings deposits, are not subject to reserve Excess.. requirements, having been exempted by the Deficiency. provisions of section 7 of the act of April 24, Should the aggregate "due from banks" (items 3, 4, and 5) exceed 1917. the aggregate "due to banks," both, items must be omitted from the calculation. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

AUGUST 1, 1917. FEDERAL RESERVE BULLETIN. 603 Canadian Short-Term Credit. development of the national banking system. The Secretary of the Treasury on July 25 Notwithstanding the large number of conmade public the following statement: solidations of national banks with other national banks, and making allowance for all Sir Thomas White, Minister of Finance of liquidations for conversion into State banks, the Dominion of Canada, called on me recently and failures (the latter being comparatively to ascertain if there would be any objection on few), there were in operation in tne United the part of our Government to Canada's seek- States on June 30, 1917, 7,635 national banks, ing a short-time credit of $100,000,000 in the a greater number than ever before, while in American market. I stated to Sir Thomas that resources and deposits our national banks durin view of the fact that the balance of trade ing the past year surpassed all previous records. between the United States and Canada was For the 12 months ending' June 30, 1917, running strongly in favor of the United States, 163 new national banks were chartered, with I realized that it was desirable for Canada to $9,470,000 of capital, against 117 new charters establish credits in our market to meet these the previous year, with $7,505,000 capital. adverse balances. Therefore, there would be During the 12 months ending June 30, 1917, no objection on the part of this Government to 150 national banks increased their capital in the proposed offering, but that we should, of the sum of $25,507,490. The previous year the course, have to keep control over our own situaincreases were 92, and the capital increase of tion by determining each foreign offering on its existing banks was $9,607,700. own merits and with reference to the financial In 12 months ending June 30, 1917, the conditions prevailing at the time. total number of new national banks chartered It is important that our commercial and plus the number increasing their capital was financial relations with Canada shall be con- 313, against 209 the previous year, an increase served in every reasonable way. The proposed of 104. The total increase in capital arising transaction is intended for that purpose. from banks newly chartered and old banks increasing their capital was $34,977,490; the previous year, $17,112,700—increase more than State Banks Admitted. 100 per cent. In the year ending June 30, 1917, 19 banks The following State institutions were admitreduced their capital in the sum of $1,255,500. ted to membership in the Federal Keserve Sys- The previous year 21 reduced their capital tem during the month of July: Fitchburg Bank $1,047,500. & Trust Co., Fitchburg, Mass.; Northern New For the year ending June 30, 1917, 23 York Trust Co., Watertown, N. Y.; Marshall & national banks, with $6,225,000 capital, liquidated and consolidated with other national Ilsley Bank, Milwaukee, Wis.; German Insurbanks. Similar liquidations previous year, 45; ance Bank, Louisville, Ky.; Bankers Trust & capital, $9,660,000. Savings Bank, Minneapolis, Minn.; Southwest Liquidations for purposes other than con- State Bank, Wichita, Kans.; International Trust solidation with other national banks during the Co., Denver, Colo. The number of State institu- year 1917, 87; capital, $8,902,500. Previous year, 87; capital," $7,893,000. Receiverships tions which have now joined the system is 64. year ending June 30,1917,6; capital, $1,180,000. Previous year 15, with capital $935,000. Of the new national banks chartered during Press Statements. the past fiscal year the largest number, 34, were in the State of Montana, where much In making public to-day the record for the development is going on. California and fiscal year ending June 30, 1917, of increases Texas come next with 15 each, followed by and decreases in the number and capital of Oklahoma with 10 new national banks organized during the year. Nine new national national banks, the Comptroller of the Currency banks were organized in Kansas, 7 in New said: York State, 6 in Minnesota, 6 in Virginia, 5 The fiscal year just closed has witnessed in Idaho, 4 each in New Mexico and Pennsylextraordinary progress in the growth and vania, 3 each in Alabama Massachusetts, New Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

604 FEDERAL RESERVE BULLETIN. AUGUST 1,1917. Jersey, North Dakota, South Carolina, South DISTRICT NO. 3. Dakota, and Wisconsin. Two each were organized in Arizona, Georgia, Illinois, Louisiana, Trustee, executor, administrator, and registrar of stocks and bonds: Iowa, Michigan, Missouri, North Carolina, and Eighth National Bank, Philadelphia, Pa. Oregon, while one new national bank was organized in each of the following States: DISTRICT NO. 5, Arkansas, Colorado, Florida, Indiana, Mississippi, Nebraska, Tennessee, Utah, and Ohio. Trustee, executor, administrator, and registrar of [stocks and bonds: New national banks were organized during Union National Bank, Clarksburg, W. Va. the year in 36 States. DISTRICT NO. 8, JULY 21, 1917. Trustee, executor, administrator, and registrar of stocks and bonds: Lee County National Bank, Marianna, Ark. The Comptroller of the Currency issued on July 19 the following: DISTRICT NO. 10. The Comptroller of the Currency announced Trustee, executor, administrator, and registrar of stocks to-day that in future calls for reports of condi- and bonds: tion national banks will not be required to Casper National Bank, Casper, Wyo. make detailed statements of the various classes of money in their vaults according to the sched- DISTRICT NO. 12. ules heretofore used. Trustee, executor, administrator, and registrar of stocks Except when needed for statistical purposes, and bonds: probably once ofc twice a year, national banks Farmers National Bank, Colfax, Wash. will only be required to report in their periodical statements of condition to this office the money in their vaults under the following heads: Gold Commercial Failures Reported. coin, silver and minor coins, clearing-house certificates based on specie and currency (sec. 5192, Continued reduction in the country's business R. S.), paper currency. mortality appears in comparison with last year, Under the head "Paper currency" the na- 773 commercial failures being reported to tional banks will include all gold certificates, silver certificates, national-bank notes, Treas- K. G. Dun & Co. for three weeks of July, as ury notes, United States notes, Federal Reserve against 819 in the same period of 1916. The notes, and Federal Reserve bank notes. record for June, the latest month for which When it is desired to secure from the banks a complete figures are available, discloses 1,186 more detailed statement as to their cash holdings for statistical purposes, sufficient notice defaults for $14,055,153, and compares with in advance will be given them to make prepara- 1,227 insolvencies for $11,929,341 in June, tion for supplying such data. It is believed 1916. The augmented liabilities were due to a that this ruling will materially reduce the labor large munitions failure in the first district; of receiving tollers and other bank employees. the amounts were also higher in the second, third, fourth, fifth, and ninth districts, but smaller elsewhere, and notably so in the sixth, Fiduciary Powers Granted. eighth, and twelfth districts. As to number, The applications of the following banks for increases in the second, fourth, fifth, seventh, permission to act under section 11-k of the eighth, and ninth districts were more than Federal Reserve Act have been approved offset by decreases in the other six districts, since the issue of the July Bulletin: the falling off being substantial in most cases. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

AUGUST 1,1917. FEDERAL RESERVE BULLETIN. 605 Failures during June. EARNINGS AND EXPENSES OF THE FED- ERAL RESERVE BANKS. Number. Liabilities. Districts. Total earnings of the Federal Reserve Banks 1917 1916 1917 1916 for the six months ending Juno 30, 1917, were $4,141,528, compared with $1,824,436 for the First . . 99 124 $4.991,194 $1,129,407 Second 225 199 3,617,172 2,599,669 corresponding period in 1916, while total cur- Third 49 55 534,937 532,205 Fourth 115 93 904,632 704,632 rent expenses for the same period were Fifth 82 71 528,499 437,730 Sixth 88 119 638,186 1,648. $58 $1,378,883, compared with $1,019,926 in 1916. Seventh.. 141 131 972,840 1,004,002 Eighth 77 68 264,035 1,466,823 Current expenses for the period under review Ninth 45 28 264,957 152,872 Tenth 48 68 266,448 448,232 are made up of $990,830 expenses of operation Eleventh 66 78 376,200 546,699 Twelfth 151 193 696,053 1,258,712 proper; $321,844, the cost of Federal Reserve Total. . . 1,186 1,227 14,055,153 11,929,341 notes and bank notes, including expressage, insurance, and expenses incident to the issue, New National Bank Charters. exchange, and redemption of notes, and $66,- The Comptroller of the Currency reports the 209 of depreciation charges on bank premises, following increases and reductions in the num- furniture, and equipment, ber of national banks and the capital of The excess of earnings over expenses, or net national banks during the period from June earnings, were $2,762,645, or more than three- 23, 1917, to July 27, 1917, inclusive: fold the net earnings for the corresponding Banks. period in 1916. Calculated on an average New charters issued to 31 paid-in capital of $56,331,000, these net earn- With capital of $3,470,000 ings constitute 9.8 per cent, as against 2.9 Increase of capital approved for 22 per cent reported for the first six months of With new capital of 2, 205, 000 the immediately preceding year. All the banks Aggregate number of new charters and show annual rates of net earnings in excess of banks increasing capital 53 6 per cent; four banks—among them New With aggregate of new capital authorized 5, 675,000 York—having earned 10 per cent or over and Number of banks liquidating (other than five other banks between 9 and 10 per cent. those consolidating with other national While financial results of operation from the banks) 9 very beginning were more favorable than for Capital of same banks 1,185,000 Number of banks reducing capital 2 1916, net earnings show the largest increase for Reduction of capital 60,000 May and particularly June, chiefly because of the Total number of banks going into liquidalarge call by members upon the credit resources tion or reducing capital (other than those of the reserve banks in connection with the Libconsolidating with other national banks). 11 Aggregate capital reduction 1,245, 000 erty Loan. As a matter of fact, the ratio of current expenses to earnings, which during the The foregoing statement shows the aggregate of first four months of the present year works out increased capital for the period of the banks embraced in statement was 5,675,000 at 36.3 per cent, declined to 30.2 per cent in Against this there was a reduction of capital May and 20.5 per cent in June. This ratio for owing to liquidations (other than for con- the six months of the present year equals 33.3 solidation with other national banks) and per cent, compared with 55.9 per cent for the reductions of capital of 1, 245,000 first six months in 1916. Of the total earn- Net increase 4,430,000 ings for the six months of the present year, In addition to the changes noted above, one bank, 20.3 per cent, as compared with 26.3 per cent with a capital of §50,000, was placed in the hands of a in 1916, was from bills, including collateral receiver during this period, 3674—17 5 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

606 FEDERAL RESERVE BULLETIN. AUGUST 1, 1917. notes, discounted for membor banks; 40.9 1916. Amounts collected from the banks for per cent from bills purchased in the open the support of the Federal Reserve Board market, compared with 23.4 per cent in 1916; totaled $111,395, as against $109,973 in 1916, 24.3 per cent from United States securities constituting 11.2 per cent of the total operatas against 24.7 per cent in 1916; 4.7 per ing expenses of the banks, as against 13 per cent from municipal warrants, as against cent in 1916. Rent constituted 8.1 percent of 19.0 per cent in 1916; and 3.6 per cent from total operating expense, as against 9.3 per cent transfers handled, a class of earnings not shown the year before, other specified expense items of separately prior to 1917. About 3.5 per cent importance, in the order of volume, being printof the earnings for the period under review is ing and stationery, postage, and directors7 foes. represented by profits realized on United States Current expenses shown are exclusive of exsecurities. Tho remainder of the earnings— penses incurred by the banks in the flotation about 2.5 per cent—is made up of penalties of the Liberty Loan, and of disbursements on and interest charges on doiiciont reserves, com- account of tho banks' clearing departments. missions received on bills and securities pur- Tho former are reimbursable by the Governchased for other Federal Reserve Banks, and ment, and tho latter are covered largely by other miscellaneous profits. special service charges against banks which Of tho total expensos of operation for the forward checks to tho Federal Reserve* Banks six-months period, 2S.2 per cent went as com- for collection. Those charges amounted to pensation to bank officers and 24.1 per cent as $326,575, or $12,156 less than the total dissalaries to the clerical staff of the banks, these bursements of the banks on account of their percentages showing but slight changes since transit departments. Earnings and current expenses of each Federal Reserve Bank and of the system as a whole for the six months ending June 30,1917. EARNINGS. I Atlanta (in- Boston. Y N o e r w k. d P el h p i h la i - a. C la le n v d e . - m R o ic n h d - . c N lu e d w ing c C a h g i o - . Lo S u t. is. M ap i o n l n is e . - K C a i n ty s . as Dallas. F c S i r s a a c n n o - . Total. Orleans bnmch). Bills discounted SSI, 671 5215,411 SOS. 094§41,208 $lll,7<?0 $50, G12 $62,057 £36,442 $69,091 1535,342 S4S, 195 ;S22,17S $842,081 Acceptances bought 184,638 538,G24 174; 124127,446 I S6,139 49.020 164,127 ! 85,494 76,051 I 61,081 22,031 126,825 1,695,603 United States securities j 50,049 153,SSS 57,314 119,574 49,651 42,782 152,307 i 57,406 | 48,751 il29,7S9 78, (iSS 67,939 l,00S, 138 Municipal warrants | 5,203 00,69-1 16,512 40,732 I 396 1,726 30,545 • 13,280 4,225 j 5,055 5,764 11,510 195,642 Profits realized on United States I securities ! 11,102 14,330 13,70S 24,201 16,712 25,569 25,196 : 4,008 11,250 14G.202 Transfers—Net earnings j -I339 4,717 2,956 74^230 I"25,*587* "i6"865*j"*4,"($92' 1,550 25,705 150,641 Deficient reserve penalties (in- ' eluding interest) i 1,410 13,749 2,495 4,226 11,776 SSS 5,474 ; 3,699 ! 558 j 10,251 4,612 924 ! 60,068 Commissions received 5,503 24,857 .! 30,360 Sundry profits 4 1,503 *4*i96"l **'l97 2,973 491 747 I 2,199 1 351 | 12,793 Total :339,586 1,023,002 j336,842 1362,295 276,651 176,526 514,427 -222,655 '211,743 i240,211 105,199 ;266,331 4,141,528 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

AUGUST 1,1917. FEDERAL RESERVE BULLETIN. 607 Earnings and current expenses of each Federal Reserve Bank and of the system as a whole for the six months ending June 30, 1917—Continued. CURRENT EXPENSES. Atlanta (in- Boston. Y N o e r w k. d P el h p i h la i - a. C la le n v d e , - ! i m R o ic n h d - . c O l N u rl d e e i a w n n g s I 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 - . Total. branch), j I. Expenses of operation: Assessments account expenses Federal Reserve Board....... $9,979 $23,720 $10,455 $12,040 : 86,696 $4,900 §13,837 $5,600 $4,764 6,148 85,396 $7,860 $111,395 Federal Advisory Council i I (fees and traveling expenses) 240 575 256 483 i 432 205 ! 472 320 150 250 150 150 3,683 Governor's conferences (including traveling expenses) .' 376 367 63 360 174- 163 ! 432 549 245 360 253 3,624 Federal Reserve agents' conferences (including traveling expenses) 110 j 240 168 ; 243 215 748 Salaries— Bank officers 21,050 54,250 20,308 ! 22,825 15,925 16,395 ! 31,350 21,728 17,000 15,700 19,328 23,600 279,459 Clerical staff 15,405 55,067 17,195 j 14,288 11,452 16,776 ! 29,333 19,475 11,597 15,325 16,646 16,082 238,641 Special officers and watchmen 237 j 3.907 3,723 I 1,735 300 I 1,596 ! 3,434 959 500 943 50 18,223 All other 24', 382 601 2,383 833 : 489 491 1,185 31,170 Directors' fees 3,206 "l*886"i 970 1, 700 ; 1,030 930 2,860 i 1,790 1,690 i 860 1,030 19,806 Per diem allowance 4,50 570 530 650 810 ! 1,234 330 790 ! 410 1,200 ! 400 195 7,569 Traveling expenses 307 ° 793 729 547 1,072 I 1,307 500 653 2,272 | 584 9,656 Officers' and clerks' traveling expenses... 347 1,052 99 197 411 I 644 439 146 j 227 511 i 384 506 4,963 Legal fees 1,200 500 1,250 500 j 300 1,250 750 300 j 1,200 618 7,868 Rent 6,250 24,579 4,250 8,290 2,603 ! 5,804 j 10,902 2,830 I 3,650 j. 4,811 80,373 Taxes and fire insurance 50 8 80 . 11 i 235 384 Telephone 1,523 1,709 788 751 207 i 222 ! 724 355 i""325"! 565 7,868 Telegraph 310 579 55 321 316 302 j 361 642 287 323 ! 734 4,598 Postage 1,626 4,656 448 2,378 2,235 I 3,377 I 4,714 3,782 614 1,253 i 1,405 , 33 26,522 Exprcssage 25 323 148 1,270 1,361 I 459 I 721 916 ; 1,090 1,490 234 8,065 Insurance and premiums on fidelity bonds 2,162 2,433 3,574 377 I 1,010 942 917 j 810 ! 681 704 1,938 16,417 Light, heat, and power 804 639 241 396 56 850 545 760 174 4,465 Printing and stationery . 2,448 3,442 3,111 4,255 ; 2,373 4,067 1,497 3,555 1,894 3,043 3,491 41,844 Repairs and alterations 5S0 258 86 3.434 240 ! 8 207 96 I 349 153 915 354 6,680 All other expenses n. s 3,400 22,539 2,249 I', 573 1,631 ! 4,286 9,205 2,663 I 1,173 3,047 1,400 3,643 56,809 Total expenses of operation 69,344 233,472 70,089 81,129 53,911 ; 62,447 117,626 71,249 I 49,242 57,708 58,077 66,536 j 990,830 II.:{Note issues: lCost of Federal Reserve currency issued by bank (including oxpressage, insurance, etc.) 16,937 I 134,083 22,200 19,140 33,134 41 1 46,264 2,960 j 9,052 10,950 232 21,766 316,759 Miscellaneous charges account note issues (including taxes on Federal Reserve bank note circulation) ! 2,395 304 591 'I 241 945 5,085 III. Depredation charges: Furniture and equipment.. 3,000 i 27 I 1,199 12,388 1,704 I 2,602 2,400 2,300 7,500 1,161 34.281 Bank premises 24,428 7,500 3I/J 8 Total current expenses... 89,281 I 367,555 92,316 103,863 124,470 64,192 |164,194 77,402 1 60,935 71,903 73,309 89,463 1,378,883 Earnings in excess of current expenses 250,305 : 655,507 244,526 258,432 ^52,181 112,334 J|335500,,2!33 145,253 '150,808 174,308 91,890 176,868 2,762,645 Per cent of net earnings to calculated average paid-in capital 9.9! 11.0 9.3 8.9 9.3 10.0 9.9 j 12.4 11.2 6.8 9.0 9.8 Dividends declared payable as of June 20 474,776 .55,320 175,936 L35,481 70,507 205,710 82,670 '143,821 89,117 79,836 108,071 1,721,245. 1 Credit. 2 In addition a dividend amounting to $36,223 was paid Apr. 17. 3 In addition a dividend amounting to $87,921 was paid Jan. 25. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

608 FEDERAL RESERVE BULLETIN. AUGUST 1, 1917. Transit department disbursements and net service charges of each Federal Reserve Bank and the system as a whole, for the six months ending June 30, 1917. DISBURSEMENTS. Atlanta Boston. Y N o e r w k. d P el h p i h la ia - . C la le n v d e . - m R o ic n h d - . cl N ( u i e d n w i - ng c C a h g i- o. Lo S u t. is. M ap i o n l n is e . - K C an it s y a . s Dallas. F c S i r s a a c n n o - . Total. Orleans branch). I. Expenses of operation: Salaries- Bank officers $1,875 $1,500 $469 $725 $1,110 $5,679 Clerical stall $20,525 S22,090 $20,451 13,723 14,747 8,265 $16,392 6,493 $10,717 $11,916 12,181 $11,924 169,424 ,\ 11 other 43 32 380 455 Officers and clerks' traveling 631 213 201 1,045 Legal fees 185 37 61 283 Rent 3 250 2,850 750 1 116 600 1,375 2,473 699 1,500 600 15,213 Taxes and fire insurance 22 77 30 14 143 Telephone 6 36 30 19 162 120 24 10 13 420 Telesirai)h 84 24 1 15 31 61 60 248 524 Postage 8,598 8,950 7,390 5,081 4,426 3,501 4,039 3,590 4,206 6,436 4,166 3,269 63,652 E xpressage 3,010 8,221 4,148 61 325 153 421 1,138 9,785 27,262 Insurance and premiums on fidelity bonds 344 304 623 142 56 120 296 225 344 2,454 Light, heat, and power 636 80 68 395 29 286 125 81 174 1,874 Printing and stationery 2,141 4,613 1,525 2,619 1,081 1,099 3,193 1,745 1,795 1,364 2,554 1,860 25,589 Repairs and alterations 25 77 48 19 81 30 23 303 All other expenses not specified 328 4,856 1,519 833 464 1,461 1,971 716 282 327 102 840 13,699 Total expenses of operation. 38,860 52,635 36,724 25,970 23,539 16,418 28,841 14,741 18,850 21,084 22,173 28,184 328,019 II. Depreciation charges: Furniture and equipment.. . 2,245 1,873 1,000 853 840 1,390 1,200 1,311 10,712 Total disbursements 38,860 52,635 38,969 27,843 24,539 17,271 28,841 15,581 20,240 22,284 23,484 28,184 338,731 SERVICE CHARGES. Member banks ! 46,431 55,930 43,216 26,855 21,899 14,993 ] 50,756 18,095 j 14,992 7,244 12,999 3,555 316,965 Other Federal Reserve Banks j 6,036 7,092 7,014 11,632 10,142 11,397 7,852 14,577 ! 9,854 16,297 11,607 7,652 121,152 i Total service charges received 52,467 63,022 50,230 38,487 32,041 26,390 58,608 32,672 24,846 23,541 24,606 11,207 438,117 Service charges paid other Federal Reserve Banks 4,521 28,652 12,840 10,194 4,017 3,518 30,234 14,383 1,038 1,360 640 145 111,542 Service charges, net 17,940 34,370 37,390 28,293 28,024 22,872 28,374 18,289 22,181 23,966 11,062 326,575 Transit department disbursements in excess of net service charges received 18,265 1,579 1450 13,485 15,601 467 12,7 13,568 103 1482 17,122 12,156 1 Excess of net service charges over transit department disbursements. Cost of furniture and equipment, including vaults; also of bank premises. Atlanta (in- Boston. Y N o e r w k. d P el h p i h la i - a. C la le n v d e . - m R o ic n h d - . c O l N r u l e d e w i a n n g s c C a h g i o - . Lo S u t. is. M ap i o n l n is e . - K C a i n ty sa . s Dallas. F c S i r s a a c n n o - . Total. branch). Balance as reported Jan. 1,1917. $15,410 $20,164 $12,000 $12,282 i$28,109$28,689 $59,274 $41,961 $37,164 $255,053 Additional purchases during 6 months ending June 30,1917 $5,829 9,388 8,915 1,388 3,380 4,117 2,966 7,212 2,399 2,160 $1,161 48,915 Total 5,829 24,798 29,079 13,388 15,662 32,226 31,655 66,486 44,360 39,324 1,161 303,968 Depreciation charged during 6 months ending June 30,1917... 3,000 2,272 3,072 13,388 2,557 3,442 3,790 3,500 8,811 1,161 44,993 Balance July 1,1917 2,829 22,526 26,007 13,105 32,226 28,213 62,698 40,860 30,513 258,975 Bank premises 100,000 105,979 136 736 342,715 1 A refund of $195.50 received in January, 1917, deducted from amount reported on Jan. 1,1917. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

AUGUST 1, 1917. FEDERAL RESERVE BULLETIN. 609 Cost of unissued Federal Reserve currency. Atlanta (in- Boston. Y N o e r w k. d P el h p i h la ia - . C la le n v d e . - m R o ic n h d - . O cl N r u l e d e w a in n g s Chi- Lo S u t. is. M ap i o n l n is e . - K C a i n ty sa . s Dallas. F c S i r s a a c n n o - . i i j Total, branch). Balance as reported Jan. 1,1917... j$29,230 $235,599$27,708 $39,544 $9,355 $20,315 $67,958 $19,763 $16,295 i$2S,599 $8,940 | $503,306 Additional cost during 6 months ! ending June 30,1917 ; 48,474 255,439 34,248 31,696 23,779 14,575 64,604 39,598 32,547 50,860 23,379 $21,766 | 640,965 Total | 77,704 491,038 61,956 71,240 33,134 34,890 132,562 59,361 48,842 79,459 32,319 21,766 1,144,271 Cost of Federal Reserve currency I issued and charged to current ! expenses during 6 months end- j ing June 30,1917 16,937 134,083 22,200 19,140 33,134 41 46,264 2,960 9,052 10,950 232 21,786 316,759 Balance July 1,1917 1 60,767 356,955 39,756 52,100 34,849 86,298 56,401 39,790 68,509 32,087 827,512 i Includes cost of unissued Federal Reserve bank currency amounting to $983.82. Earnings and current expenses, by months, from January to June, 1917, of each Federal Reserve Bank and the system as a whole. EARNINGS. Atlanta New Phila- Cleve- Rich- cl ( u i d n i - ng Chi- St. Minne- Kansas San Boston. York. delphia. land. mond. New Louis. apolis. City. Dallas. Fran- Total. Orleans cisco. branch). January... $53,987 $120,886 $48,394 $65,114 $44,597 $47,800 $31,400 $32,121 1829,731 $20,826 $49,982 February. 43,978 109,043 45,091 52,713 35,436 26,584 68,040 31.283 31,310 j 31,311 24,678 34,413 533,880 March 45,168 91,582 44,794 51,150 37,496 21,128 63,591 33,052 31,094 ! 34,889 22,943 31,090 507,977 April 53,134 107,644 47,812 54,016 44,603 23,870 68,272 35,947 34,082 ; 34,955 38,725 571,946 May 53,867 156,521 72,047 66,220 55,669 28,271 89,149 43,806 43,184 : 42,511 34,747 52,476 738,468 June 89,4.52 437,386 78,704 73,082 58,850 28,873 136,407 47,167 39,952 | 72,814 3333,111199 59,645 1,155,451 Total.. 339,586 11,023,062 336,842 362,295 276,651 176,526 514,427 222,655 211,743 1246,211 165,199 266,331 4,141,528 | i i CURRENT EXPENSES. January... $11,736 $53,558 $11,354 !$12,104 $10,395 ^$10,972 $18,968 $12,428 87,705 !Sll,,0040 $10,022 $11,244 $181,526 February. 14,088 61,972 15,548 i 15,153 8,147 i 11,424 23,194 12,183 " """ 1111,008855 9,271 11,416 203,373 March 14,908 66,284 15,340 j 15,207 8,672 i 10,882 25.960 11,391 8,995 12,537 9,407 10,984 210,567 April 15,667 61,834 15,703 I 18,178 8,779 ! 10,63131,639 11,677 11,889 12,374 9,994 11,076 219,441 May 14,656 58,375 15,145 ' 20,215 10,483 ! 10,56634,175 15,228 11,166 13,078 8,988 11,262 223,337 June 18,226 65,532 19,226 ! 23,006 177,994 9,717 30,258 14,495 11,288 11,789 25,6273 33,481 340,639 Total.. 19,281 : 367,555 92,316 ! 103,863124,470 | 64,192 164,194 77,402 60,935 ! 71,903 I 73,30989,463 1,378,883 1 Increase due to special charges against current expense at closing of books on June 30 on account of unissued Federal Reserve notes and for depreciation on bank premises and furniture and equipment. s Increase due to special depreciation charges on bank premises and furniture and equipment being made against current expenses at closing of books on June 30. s Increase due to special charges against current expense at closing of books on June 30, on account of unissued Federal Reserve notes and for depreciation of furniture and equipment. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

610 FEDERAL EESEKVE BULLETIN. AUGUST 1,19.17. Federal Reserve Notes Issued During 1917 and j by the gradual increase in the amount of gold Cover Held by Agents. cover and the simultaneous decrease of paper cover reported by the New York Federal Re- The extent to which the note issue functions serve Agent. of the Federal Reserve Banks were called into The simultaneous increase in the amount of play during the past month chiefly in conpaper held by all Federal Reserve Agents is due nection with liberty loan operations is seen partly to the fact that the banks following the from the following exhibit and accompanying recommendation of the Board are trying to diagram, showing the net amounts of Federal i , . , ,, ,. ., » k -o . • 1 ,i AT -xr i i n i bring about a more equable distribution of A funds held by banks and agents, so as to be able Reserve notes issued to tne New York and all j fe H to show in their reports approximately equal the 12 Federal Reserve Banks and the amounts | percentages of reserve against Federal Reserve of gold and commercial paper deposited with the notes and deposits. Thus on June 22 the note nFoetdeesr. al IRt ewseilrlv bee Asegeenn ttsh aats wcohvileer pargioari ntsot Jsuunceh 15 over 90 per cent of the notes issued was I reserve a£amst aH Federal Reserve notes m secured by gold, the percentage of gold cover | actual circulation, i. e., the net amount of notes on that and more recent dates shows a con- issued less amounts held by the Federal siderable decrease. This is due largely to the Reserve Banks and in process of redemption, substitution by the New York bank of 100 I is shown as 79.8 compared with a cash reserve millions of paper for gold held by the agent, | against net deposits of 68.4 per cent, while on mainly to strengthen its gold position when the July 20 these ratios were 81.4 per cent against strain upon its cash resources was unusually Federal Reserve notes and 78.1 per cent against great. That this strain is passing is indicated I net deposits. Amounts of Federal Reserve notes issued by the Nevj York Federal Reserve Agent and cover of gold and paper held; also total amounts of Federal Reserve notes issued by all Federal Reserve Agents and total cover of gold and paper held during 1917. [In millions of dollars.] New York. Federal Reserve system. Cover held by agent. Total of Cover held by agents. Federal Federal Reserve Reserve notes notes issued by- issued by agent (net). Gold. Paper. (net). 1917. Jan. 5 109.3 109.3 300.3 281.3 19.0 20.3 12 104.9 104.9 293.4 274.5 18.9 20.8 18-19.. 105.5 105.5 292.0 273.1 18.9 20.4 26 107.5 107.5 291.7 273.3 18.4 19.1 Feb. 2 106.8 106.8 290.6 274.1 18.5 19.7 120.8 120.8 308.3 288.7 19.6 21.7 16.. 129.2 129.2 321.5 297.3 24.2 26.7 23.. 134.5 134. 5 331.5 306.2 25.3 28.6 Mar. 2.. 143.4 143.4 343.8 317.5 26.3 28.7 150. 5 150.5 355.3 328.5 26.8 29.7 16.... 157.9 157.9 363.3 338.6 24.7 26.2 23.... 161.7 161.7 372.2 349.5 22.7 24.4 30.... 165.9 165.9 382.6 360. 7 21.9 23.0 Apr. 5-6.. 176.8 176.8 400.7 378. 4 22.3 23.6 13.... 188.2 188. 2 431. 8 410.8 21.0 22. 6 20.... 191.2 191.2 440. 5 418.5 22.0 23.8 27.... 193.6 193.6 410. 5 422.9 23.6 26.0 May 4.... 198.2 198.2 458.9 433.1 25.8 27.3 201.6 201.6 470.4 438.3 32.1 32.8 205.2 205.2 478.9 448.3 30.6 32.4 25.. 208.6 208.6 488.1 456.6 31.5 32.7 June 1.. 212.8 212.8 499. 8 466.9 I 32.9 34. 4 8.. 215.0 215.0 512.5 475. 2 37.3 37.9 15.. 219.9 194.9 25.0 528.0 460.0 68.0 69.2 22.. 223. 7 123. 7 100.0 540.0 390. 8 149. 2 153.1 29.. 229.3 139.3 90.0 550.5 402.0 147.9 153.4 July 6.. 233.0 148.0 85.0 570. 7 4.13. 7 157. 0 162.7 13.. 238.3 161.8 76.5 579.9 428.3 151. 6 158. 5 20.. 238. 4 162.0 76. 5 583.9 423.9 160.0 168. 2 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

AUGUST 1, 1917. FEDERAL BESEEVE BULLETIN. 611 GOLD SETTLEMENT FUND. Since the change in the operation of the gold An audit of the gold settlement fund was settlement fund made possible by the amendmade on June 12, 1917, of which the following ments to the Federal Reserve Act approved on is a report: June 21, 1917, it has been administered more JUNE 12, 1917. smoothly and expeditiously than under the FEDERAL RESERVE BOARD, former arrangement. The transfer of the phys- Washington, D. 0. ical custody of the fund to the Treasurer of the GENTLEMEN: We hereby certify that as of United States has eliminated trips to the vault the close of business June 7 we verified the acfor the purpose of maldng deposits or withcounts of the settling agent of the gold settlement fund, and that the undernoted certificates drawals from the fund and the indorsements were taken from the gold settlement safe and by members of the Federal Reserve Board. verified by actual count: The total deposits in the fund have increased since the last statement in the Bulletin, through Federal Reserve Agents' gold fund. deposits made by Federal Reserve Banks, until Serial Nos. Number. Amount. on July 18 the credit balances aggregated $585,878,150. 70,458to 72,000.... 1,513 $15,430,000 81,455 to 81,730.... 276 2.760 000 Below are given figures for the fund from 81,743 to 81,917.... 175 1,750,000 83,139 to 83,600.... 462 4,620,000 June 22 to July 19, 1917, inclusive. Changes 85,306 to 90.000.... 4,695 46,950,000 90,801 to 92,166.... 1,366 13,660,000 in the ownership of the fund amounted to only 94,749 to 95,035.... 2S7 2.870.000 101,001 to 101,879.. 879 8.790- 000 2.17 per cent of obligations settled. The Fed- 102,080 to 105,000.. 2,921 29,210! 000 107,001 to 311,000.. 4,000 40.000.000 eral Reserve Bank of Cleveland showed the 115,401 to 116,080.. 680 6.800,000 largest increase. Total. 17,284 172,840,000 Deposits and withdrawals in the fund are now handled in even thousands of dollars. Federal Reserve Banks. Amount of clearings and transfers, Federal Reserve Banks, 69,553 to 70,457.... 905 $9,050,000 92,167 to 93,000 834 8,340.000 from June 22 to July 19, 1917, inclusive. 95,036to 99,000.... 3,965 39.650,000 116,081 to 117.000.. 920 9,200,000 [000's omitted.] 123,501 to 127,500.. 4,000 40,000,000 130,801 to 133,589.. 2,789 27,890 000 133,592 to 134,248.. 657 6,570,000 Total ! Balances Trans- 134,251 to 135,000.. 750 7,500,000 clearings. ! adjusted, i fers. 138,001 to 139,907.. 1,907 19,070.000 139,909 to 139,936.. 28 280,000 Settlement of— . j 16,755 167,550,000 June28,1917 8434,395 ; 364,328 317,500 Add Treasury certificates. 40,750,000 July 5,1917 401,762 | 64.481 6,040 July 12,1917 ; 550,279 | 39J406 127,250 Total 208,300,000 Julyl9,1917 ! 437,321 j 48,040 52,000 Total ! 1,823,757 ! 216,255 202,790 In addition to the above, the Treasurer of Previously reported for 1917 : 8,183,656 | 644,332 792,254.5 the United States, in his certificate to us, Total since Jan. 1,1917 : 10,007,413 | 860,587 995,044.5 Total transfers Jan. 1.1917, to date..; 995,044.5 I reports the custody for account of the Federal Total for 1916, including transfers... 5,633,906 j Reserve Board in the gold settlement fund of Total lor 1915, including transfers...: 1,052,649 j $40,750,000; the aggregate of $381,140,000 Total clearings and transfers ! ! agrees with the balances shown on the gold May 20,1915, to July 19,1917.. i 17,689,072.5 j settlement ledger. Respectfully, yours, W. E. CADWALLADER, Representing Federal Reserve Banks. JAY L. REED, Representing tlie Federal Reserve Agents. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

612 FEDERAL RESERVE BULLETIN. AUGUST 1, 1917. Changes in ownership of gold. [000's omitted.] Total changes from Total to June 21, From June 22 to July 19,1917, inclusive.1 May 20, 1915, to 1917. July 19,1917.2 Balance to federal Reserve Bank of— credit June 22,1917, Balance Decrease. Increase. pplluuss nneett ii July 19, Decrease. Increase. Increase. ddeeppoossiittss ooff !| 1917. gold since j that date, j Boston ! 870,421 834,593 i $11,165 $23,428 $46,993 New York ! $487,230 122,498 I 115,790 6,708 $493,938 Philadelphia , j 89,292 22,053 j 15,972 6,081 83,211 " Cleveland ' 57,350 34,290.6 I 57,608. 6 $23,318 80,668 Richmond ! 18.663 25,594 | 25,099 495 18,168 Atlanta | 19,283 2,647 ! 6,690 4,043 23,326 Chicago • 46,859 59,655 ! 66,086 6,431 53,290 St. Louis ! 9,917 23,283 ! 25,584 2,301 12,218 Minneapolis j 16,164 11,411 ! 9,247 2,164 i 14,000 Kansas City j 46,352.5 31,317.65 I 33,108.65 1,791 48,143.5 Dallas ! 35,888.5 15,327 j 10,260 5,067 i 30,821.5 San Francisco • 77,040 13,800 19,859 6,059 83,099 Total ; 487,230 .487,230 396,469.25 j 396,469.25 43,943 i 43,943 493,938 493,938 1 Changes in ownership of gold during period June 22,1917, to July 19,1917, equal 2.17 per cent of obligations settled. 2 Total changes in ownership of gold since May 20,1915, equal 2.79 per cent of obligations settled. Gold-settlement fund—Summary of transactions from June 22 to July 19, 1917, inclusive. [000's omitted.] Ba l l a a s n t ce Gold. Transfers. Weekly settlemen 19 ts , f 1 r 9 o 1 m 7. June 22 to July Ju 1 l 9 y 1 7 1 , 9, balance Federal Reserve Bank cf— . state- in fund ; ! : Ju m 1 n 9 e e 1 n 7 2 t . 1 , , 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 , cre N d e i t ts. b c u l a s o f i s t n e e e r o s f s. Boston §39,593 i §5,000 $28,000 $5,810 $121,741 $126,313 $10,382 $11,165.00 New York 36,498 j 4,000 $90,000.00 17,000 15185,250 174,958 633,105 458,147 115,790.00 Philadelphia 23,433 j 1,520 140.00 J19,000 9,147 207,104 220,023 22,066 15,972.00 Cleveland 33,035 ' 2,450 3,705.60 39,000 117,830 180,148 62,318 57,608.60 Richmond 20,431 1 2,500 7,663.00 I 12,000 5,000 4,0 94,880 101,385 10,594 25,099.00 Atlanta : 2,447 i 1,500 1,700.00 i 3,250 40 56,692 63,945 7,253 6,690.00 Chicago 32,777 i 15,376 42,254.00 24,000 500 7,856 245,353 275,284 37,787 66,086.00 St. Louis 16,583 j 5,850 12,550.00 6,384 127,196 129,497 8,685 25,584.00 Minneapolis 11,211 i 200.00 7,500 2,323 52,108 57,444 7,659 9,247.00 KansasCity 22,235 ! 9,082.65 16,000 79,294 97,085 17,791 33,108.65 Dallas 14,077| 290 1,540.00 12,040 4,206 32,359 39,332 11,179 10,260.00 San Francisco 17,360 I 3,600 40.00 25,000 }2,000 1,482 56,095 75,154 20,541 19,859.00 Total ; 269,680 | 42,086 168,875.25 202,790 202,790 216,255 1,823.757 1,823,757 | 216,255 |396,469.25 Federal Reserve Agents7 fund—Summary of transactions from June 22 to July 19, 1917, inclusive. [000's omitted.] | Balance Balance Federal Reserve Agent at— ! ! : l J a u s m t n e e s n t 2 a t 1 t , e , - d w G ra i o w t l h d n - . G po o s ld it e d d e . - B Ju a 1 l 9 l y a 1 7 n 1 . c 9 e , Federal Reserve Agent at— l J a u m st n e e s n t 2 a t, 1 te , - G w o it l h d I Gold de- B Ju a 19 l l y a 17 n lQ . ce , 1917. 1917. Boston ! 82,000 $2,000 Minneapolis j $6,250 $6,250 Philadelphia ! 26,160 $740 SI,520 26,940 Kansas City ' 13,560 $2,500 11,060 Cleveland j 19,000 1,000 20,000 Dallas ! 5,030 1,370 3,660 Richmond | 5,000 "*5O6" 2,500 7,000 San Francisco I 22,590 52,600 25,190 Atlanta I 12,080 1,500 13,580 Chicago I 61,470 *5,"26()1 '..... 56,210 Total j 178,830 10,870 14,770 182,730 St. Louis 5,690 500 I 5,650 10,840 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

AUGUST 1,1917. FEDERAL RESERVE BULLETIN. 613 Operations of the Federal Reserve clearing system, June 16 to July 15, 1917. Ite b r ( m d e a a n s s i k l e y s r d i a v r n a v e w F er e n a c d g e i e r t o ) y a n . l b I ( o t a d u e n r a t m e i k s s l i s s y e d r i e d a v n r v e F a d e e w c r i d s a i n t t e g y r r e o i a c ) n l . t I d b te i a s m n a tr k v s i s e c d r t i s a r n a g ( w o e d ) t n a . h i e o ly r n To i T U ( t t d e a n r a m l e i , i t l ( s a e y e d s x d a c u r v l a r e u w r e s S a i r n t v g a e e t o o ) e o . n f s f I ( t d U e T a m n i r l i e s y t a e d s d a u r v a r S e e w r t r a a n g t o e f e o s ) n . b M a b e n e m r ks - b m N f a b r e o o n e m m n r k - s in dis- which trict. checks Num- I Num- Num- Num are colber. Amount. : bcr. Amount. ber. Amount. Amount. bor.- Amount. lected at par. Boston 2,360 811,626,258 i 36,011 84,357,066 2,907 35,911,818 41,278 521,895,142 1,418 $555,096 392 New York 6,047 46,201,334 !32,899 7,393,172 15,964 13,793,896 54,910 67,388,402 9,819 2,069,291 627 342 Philadelphia.. 12,031 12,502,191 ' 17,180 2,644,376 7,484 9,010,148 36,695 24,156,715 758 433,380 632 251 Cleveland 1,276 3,669,882 !16,213 8,100,179 978 2,537,991 18,467 14,308,052 299 47,374 754 542 Richmond 1,109 2,586,812 j14,450 4,341,258 1,741 3,638,463 17,300 10,566,533 194 63,312 520 268 Atlanta 1,247 1,172,476 j 9,208 1.723,8Or> 1,401 1,922,940 11,856 4,819,221 433 972,318 ' 382 378 Chicago 6,350 14,569,595 i 13,381 3,272,609 1,455 676,125 21,186 18,518,329 3,491 442,346 1,046 1,921 St. Louis 1,803 5,190,645 i 8,448 1,623,948 214 3,281,751 10,465 10,096,344 1,337 627,955 471 961 Minneapolis... 2,340 4,322,652 | 10,949 934,479 694 1,116,819 13,983 6,373,950 336 56,433 737 1,021 Kansas City... 1,898 4;424,220 ! 9,627 2,144,691 641 3,916,711 12,166 10,485,622 385 1,357,000 945 1,523 Dallas 928 1,018,881 i 8,980 3,321,922 334 868,653 10,242 5,209,456 16 4,787 625 219 San Francisco. 1,087 2,437,310 I 5,276 1,147,215 128 87,383 6,491 3,671,908 614 5,008,607 535 1,130 Totals: June 16 to July 15, 1917.., 38,476 109,722,256 182,622 41,004,720 33,941 46,762,698 255.039 197,489,674 19,100 11,637,899 7,666 8,805 May 16 to June 15, 1917... 37,898 97,322,883 1179,193 138,599,461 33,150 38,314,393 250,241 174,236,737 16,344 4,414,508 7,651 Apr. 16 to May 15, 1917... 33,767 87,370,859 171,093 36,473,163 33,428 36,836,934 238,288 160,680,956 15,925 3,597,865 7,634 Mar. 16 to Apr. 15, 1917... 31,162 60,288,002 168,607 '32,066,959 32,008 134,693,542 231,777 127,648,503 12,582 2,643,408 7,625 8,607 Feb. 16 to Mar. 15, 1917... 234,475 116,404,430 7,630 8,007 Jan. 16to Feb. 15, 1917... 220,421 110,188,028 7,630 Dec. 16, 1916, to Jan. 15, 1917.. .1241,933 121,814,589 i 7,622 8,130 Nov. 16 to Dec. 15, 1916... 125,603,732 ! 7,627 8,065 Oct. 16 to Nov. 15, 1916... .1 •" I 1227,489115,061,224: 7,623 8,059 Sept. 16 to Oct. 15,1916... .1 ! • ; |204,891 97,666,107 7,618 7,459' Aug. 16 to Sept. 15,1916.. i ; : I i |177; 397 78,559,704 7,618 7,449 July 15 to Aug. 15, 1916.. .1 ! 1 1133,113 59,301,696 7,624 7,032 ! i : I i i Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

614 FEDEEAL RESERVE BULLETIN. AUGUST 1,1917. INFORMAL RULINGS OF THE BOARD- Below are reproduced letters sent out from board of directors fixing a specific amount, but time to time over the signatures of the officers all loans made under such authority should be or members of the Federal Reserve Board reported to and ratified at a subsequent meeting of the board. which contain information believed to be of It is suggested that a resolution of the board general interest to Federal Reserve Banks and of directors of the bank might be adopted submember banks of the system: stantially as follows: '[Resolved, That the president, cashier, or Computation of Reserves. assistant cashier of this bank be, and he is (To a Federal Reserve Bank.) hereby, authorized to discount notes, drafts, or bills of exchange for , a director of this Receipt is acknowledged of your letter of bank, on the same terms and conditions as July 2, in which the question is submitted other notes, drafts, bills of exchange, or other whether cash on hand may be deducted from evidences of debt are discounted for customers liabilities against which reserve must be carried of the bank, provided the aggregate amount with the Federal Reserve Bank in computing of such notes, drafts, or bills of exchange disthe amount of reserve to be carried by member counted for such director and remaining unbanks. paid shall at no time exceed the sum of $ In reply you are advised that under section 19 Provided, further, that in any case in which as amended banks are permitted to count as reany note, draft, or bill of exchange is discounted serve only actual balances carried with a Fedunder authority of this resolution, a report shall eral Reserve Bank. In estimating the amount be made thereof at the next subsequent meetagainst which reserve must be carried they are ing of the board, and such report shall show the permitted to deduct balances due from banks aggregate amount of liabilities of such director from balances due to banks and to carry reserve to this bank." only against the net balance due to banks and against other deposit liabilities. JULY 11, 1917. Since no cash in vault is now counted as reserve under the statute, there does not appear Potatoes as Security—Superseding Ruling of November to be any authority for making this arbitrary 10, 1915. deduction. The reserve requirements have (To an individual.) been materially reduced, and the cash carried in In reply to your inquiry, I would refer you the vaults of the banks is only what is needed to the regulations of the Federal Reserve Board, to meet current demands. series of 1917, and particularly to Regulation It is not within the province of the Board to A, relating to rediscounts under section 13 of further reduce reserve requirements except by the Federal Reserve Act of notes, drafts, and suspension of these requirements upon the bills of exchange. affirmative vote of live members of the Board, Section VII of this regulation relates to comin which case a tax must be imposed upon any modity paper, which can be rediscounted for a impairment. member bank under the general terms of the JULY 6, 1917. regulation, but which may, if it complies with Loans to Directors. the conditions laid down in this section, be discounted at a preferential rate, which is now (To a Federal Reserve Bank.) 3 § per cent in most of the Federal Reserve Receipt is acknowledged of your letter of the districts. 9th instant, inclosing a letter asking whether Potatoes, properly graded and packed and section 22 of the Federal Reserve Act as stored in a weatherproof and responsible wareamended requires the vote or written consent house, as evidenced by its receipt, would unof a majority of the board of directors in each doubtodly constitute a readily marketable, noncase that a loan is made or whether this assent perishable staple within the meaning of the may be given for all loans up to a specific regulation. The member bank making loans amount. against warehouse receipts for potatoes prop- In the opinion of the Board and its counsel erly insured would, of course, have to satisfy the assent may be given by a resolution of the i itself as to the margin of its security and the Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

AUGUST 1,1917. FEDERAL RESERVE BULLETIN. 615 conditions of warehousing, but after haying through some other agency, any additional done so, and making the loan, it could redis- expense involved should be borne by the memcount such paper with the Federal Reserve ber bank. Bank for periods not longer than 90 days. In order that the expense to be assumed by JULY 28, 1917. the Federal Reserve Bank may not be unnecessarily increased, member banks, except when shipping gold, should remit currency rather Shipments of Currency to Cover Reserves. than specie wherever this is practicable. (To a Federal Reserve Bank.) JULY 30, 1917. Receipt is acknowledged of your letter of Bonds of Federal Reserve Agents. July 28, in which you call attention to certain questions that havo arisen in connection with In view of joint custody and control on the Regulation J, series of 1917. part of Federal Reserve Agents and Federal It appears that one of your member banks Reserve Banks over unissued Federal Reserve has asked whether or not it is entitled under notes, and certain funds as provided by the this regulation to ship specie to you for credit Federal Reserve Act as amended June 21, at the expense of the Federal Keserve Bank. 1917, the Federal Reserve Board has decided It further appears that in making remittance that it will not require bonds of Federal Reof currency or specie some of your banks are serve Agents and assistant Federal Reserve sending such currency or specie by express in- Agents in as large amounts as heretofore. It stead of by United States mail insured, as has prescribed as minimum bonds: For Fedrequested by you. eral Reserve Agents, $100,000; for Assistant Regulation J, series of 1917, contains the Federal Reserve Agents, $50,000. Should the following proviso: directors of any Federal Reserve Bank deem it "Provided, however, That a member bank or desirable to require larger bonds, no objeca clearing member bank may ship currency or tion will be made by the Board to such acspecie from its own vaults at the expense of tion. its Federal Reserve Bank to cover any defi- JULY 18, 1917. ciency which may arise because of and only in the case of inability to provide items to Use of the Word " Federal." offset checks received from or for the account of:its Federal Reserve Bank." (To a Federal Reserve Bank.) It will be observed that Federal Reserve In reply to your letter of the 19th instant, I Banks are expected to assume the expense of would state that it is decidedly against the shipments onty in those cases in which a policy of the Federal Reserve Board to encourmember bank is unable to provide items to age the use of the word "Federal" as part of offset checks received from or for account of the title of member banks. But for the fact its Federal Reserve Bank. that it had been agreed to ask for no legisla- This regulation was not intended to cover tion during the present session of Congress ordinary shipments of currency or specie sent except what was essentially war legislation, to Federal Reserve Banks for credit of member it is probable that the prohibition of the use banks. In cases of any remittance of currency of the word "Federal" by all banks except or specie in excess of the amount due to the Federal Reserve Banks would have been in- Federal Reserve Bank and not offset, by other cluded in the recent amendments to the items the expense of shipment of such excess Federal Reserve Act. It is probable that the should be borne by the member bank. One of Board, at the regular session of Congress this the purposes of Regulation J and of the act winter, will ask for the passage of a bill making under the authority of which it was issued was such a prohibition. to arrange for the transfer of funds with as The Board sees no objection, however, and little expense as possible. In any case, there- in fact would look with approval upon member fore, in which, a Federal Reserve Bank has State banks using on their letterheads and in requested and has arranged for shipment to their advertisements the words, to appear after be made by United States mail insured, if a their title, "Member of the Federal Reserve member bank in disregard of the instructions System." of a Federal Reserve Bank ships by express, or JULY 21, 1917. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

616 FEDERAL RESERVE BULLETIN. AUGUST 1,1917. LAW DEPARTMENT. The following opinions of counsel have been fattening and preparing for the market live authorized for publication by the Board since stock. The live stock purchased by packing the last edition of the Bulletin: companies, however, is no longer to be carried as such, but is immediately to be converted Paper Based on Live Stock. The bill or note of a packing company, the proceeds of into a commercial product and is intended for which are used for the purchase of live stock which is sale as such. slaughtered upon purchase, is not "based on live stock" In an opinion dated September 15, 1916, within the meaning of section 13, and is, therefore, not approved by the Board and published on page eligible for rediscount if it has a maturity in excess of 526 of the October, 1916, Bulletin, the con- 90 days. clusion is reached that the purchase of an agri- JULY 6, 1917. SIR: The accompanying letter raises the cultural product, or of implements or other question whether notes of a packing company, commodities used in agriculture, constitutes a the proceeds of which are used for the purchase commercial transaction if such product or comof live stock, are eligible for rediscount with a modity is purchased for the purpose of resell- Federal Reserve Bank if such notes have a ing it to some one else. It was stated in that maturity of more than 90 days. opinion that where the proceeds of a note made It is contended by the packing company that by a merchant were used to purchase millet such notes are based on live stock within the seed to be later retailed or sold, such a note meaning of that provision of section 13 which could not be treated as one given for an agrireads: cultural purpose and could not be discounted Provided, that notes, drafts, and bills drawn by a Federal Reserve Bank if it had a maturity or issued for agricultural purposes or based on at the time of discount of more than 90 days. live stock and having a maturity not exceeding This case is somewhat analogous to the case six months, * * * may be discounted in under consideration, where the live stock is not ail amount to be limited to a percentage of the purchased for any agricultural purpose, but, as assets of the Federal Reserve Bank to be ascertained and fixed by the Federal Reserve stated, for a purpose which is purely com- Board. mercial. It appears that while the proceeds of the In an informal ruling published by the Board notes in question are used to purchase live on page 212 of the August, 1915, Bulletin it stock, such live stock is slaughtered the day was held that notes made by mule and cattle of purchase or within two or three days there- dealers should be classed as mercantile rather after, the large percentage of which is put down than agricultural paper and should not be acto cure. The business of the packing company cepted for rediscount if such notes have maturiappears to be commercial rather than agricul- ties of longer than 90 days. tural. In the opinion of this office the notes of the Considering the purposes of the act, as indi- packing company are not based on live stock cated by the context, it seems clear that Con- within the meaning of that language as used gress intended to limit all commercial paper— in the section referred to and should not be that is to say, paper the proceeds of which are held to be eligible for rediscount if they have used for a commercial purpose—to maturities a maturity at the time of discount in excess of not exceeding 90 days. It permitted the of 90 days. discount of agricultural paper and paper based Respectfully, on live stock having a longer maturity mani- M. C. ELLIOTT, Counsel, festly on the ground that time should be given To Hon. W. P. G. HARDING, for harvesting and marketing crops and for Governor Federal Reserve Board. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

AUGUST 1,1917. FEDERAL RESERVE BULLETIN". 617 Deposits by Nonmember Banks in Federal Reserve Banks. Prior to the passage of the act of June 21, 1917, Federal Reserve Banks were authorized That part of section 13 as amended by the act approved June 21, 1917, which authorizes Federal Reserve Banks to receive deposits from the United States Govto receive deposits from nonmember banks is merely- ernment, from member banks, and for certain permissive and not mandatory, and in accepting any purposes from other Federal Reserve Banks. deposit authorized by that section a Federal Reserve They were not, and are not now, permitted to Bank may properly require the depositing bank to mainreceive deposits from the public generally. tain a balance sufficient to cover checks drawn against the The act of June 21 extends the corporate depositing bank as well as items received from that bank. powers of Federal Reserve Banks so as to per- JULY 10, 1917. mit them to accept deposits under certain con- SIR: Section 13 of the Federal Reserve Act ditions from nonmember banks. as amended by the act approved June 21, 1917, In the opinion of this office the board of provides in part that— directors would have the same right to exercise Any Federal Reserve Bank * * * solely I discretion in such matters that it would in for the purposes of exchange or of collection, j accepting rediscounts or in the exercise of any may receive from any nonmember bank or | trust company deposits of current funds in ! other corporate powers vested in the bank. lawful money, national bank notes, Federal Second, if in the exercise of its discretion a reserve notes, checks and drafts payable upon Federal Reserve Bank accepts a deposit from presentation, or maturing notes and bills: a nonmember bank the question arises what Provided, Such nonmember bank or trust combalance it must require the nonmember bank to pany maintains with the Federal Reserve Bank of its district a balance sufficient to maintain as a condition precedent to the exeroffset the items in transit held for its account cise of the power to accept the deposit. The by the Federal reserve bank. language of the statute in so far as it relates to this question is not entirely free from am- The following questions arising under this biguity. The condition imposed is that the statute have been submitted to this office for nonmember bank must maintain with the an opinion: Federal Reserve Bank a balance sufficient to (1) Is there any obligation on the part of offset the items in transit held for its account the Federal Reserve Bank to accept on deposit by the Federal Reserve Bank. The language items tendered by a nonmember bank which " items in transit held for its account," unless agrees to open and maintain a balance with the qualified, might be construed to mean items Federal Reserve Bank, or may the Federal belonging to the depositing bank—that is, Reserve Bank at its option decline to receive intended for credit to the account of the desuch deposit ? positing bank. (2) May the Federal Reserve Bank require In other words, while the word "account" the depositing bank to maintain a balance ordinarily contemplates both debit and credit sufficient to cover checks drawn against the entries (Preston National Bank of Detroit v. depositing bank and presented by the Federal George T. Smith Middlings Purifier Co., 60 N. Reserve Bank for payment, or does the statute W., 981; 102 Mich., 462. Frutig v. Trafton, contemplate merely that the balance main- 83 Pac, 70, 71, 72; Cal. App., 47. Purvis v. tained should cover items received from the Kroner, 23 Pac, 260; 18 Or., 414), nevertheless depositing bank and held by the Federal as stated by the court in the case of Nelson v. Reserve Bank for collection ? Posey County, 4 N. E., 703; 105 Ind., 287: In answer to the first question, it seems clear from the language used and from the "It is none the less an account that all the items of charge are by one person against context that the legal effect of this amendment another, instead of being a statement of mutual is merely to broaden the corporate powers of demand of debits and credits, provided the the Federal Reserve Bank rather than to vest contract arise out of charges express or imany specific rights in nonmember banks. plied, or from some duty imposed by law." Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

618 FEDERAL KESERVE BULLETIN. AUGUST 1,1917. It might reasonably be contended, there- Loans on Improved Farm Lands. fore, that inasmuch as the proviso under con- Section 24 authorizes any national bank to loan on unsideration immediately follows that part of encumbered and improved farm land up to 50 per cent of its actual value. What proportion of the land used as section 13 which authorizes Federal Reserve security must be improved or cultivated must necessarily Banks to receive items from nonmember depend upon the facts of each case. banks, that Congress intended the balance to JULY 19, 1917. be maintained with the Federal Reserve Bank SIR: There has been referred to this office an to be sufficient only to cover such items. extract from the report of an examination of a This view, however, appears to be negatived national bank, with the request that an opinion by the use of the word "offset." An offset be expressed as to whether the transaction outnecessarily involves mutual demands as be- lined conforms to section 24 of the Federal tween the two parties concerned. It must be Reserve Act. assumed, therefore, that Congress intended that It appears that the bank holds a mortgage of the balance maintained should be sufficient to $30,000 secured by land, part of which is cleared protect the Federal Reserve Bank against loss and in cultivation and part of which is in timon account of any demands or claims that it ber. The question for determination is, whether might have against the nonmember bank. the value of the whole land can be taken into Such claim might arise (a) on account of items consideration in fixing the amount that may be credited to the account of the nonmember bank loaned thereon, or whether only that part and returned unpaid, and (b) by items received which is cleared and in cultivation can be from other banks drawn against the depositing treated as improved farm land. bank and presented by the Federal Reserve From a consideration of the authorities, I arn Bank for payment. of the opinion that no hard and fast rule can be Considering, therefore, the purpose and in- adopted in determining what proportion of a tent of the act, and assuming as the context farm must be improved in order for the farm, clearly indicates that the purpose of this pro- as a whole, to be treated as improved farm land viso is to afford protection to the Federal Re- within the meaning of section 24. In limiting serve Bank against any loss resulting from the loans made by national banks to improved transactions with nonmember banks, it seems farm land, it was no doubt the purpose of clear that the Federal Reserve Bank is author- Congress to provide that land accepted as ized and should require the nonmember bank security should be capable of producing some desiring to make deposits with the Federal income and should, by reason of its condition, Reserve Bank to maintain a substantial bal- be readily marketable. It is usually true that ance, sufficient in the judgment of the officers some part of the area included within the bounof the Federal Reserve Bank to offset checks daries of a farm should be technically unimor other items drawn against the depositing proved. It was hardly the purpose of Congress bank and presented by the Federal Reserve to require a survey of the portion of land in Bank for payment as well as items received cultivation or which was otherwise improved from the depositing bank. and to permit a bank to lend on the security of Respectfully, only that part. M. C. ELLIOTT, Counsel. On the other hand, if a very small portion of To Hon. W. P. G. HARDING, a tract is improved, it was hardly within the Governor Federal Reserve Board. contemplation of Congress that this would Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

AUGUST 1,1917. FEDERAL RESERVE BULLETIN. 619 justify the acceptance as security of a large area acres is susceptible of being used for farm purof contiguous land without improvements. poses and about 640 acres is in actual cultiva- The circumstances in each case should, there- tion at this time. The contention is made that fore, be considered, and if a tract of land is used the timbered land is used for grazing purposes* as a farm a substantial portion being under If this is true and the land which is described as cultivation or otherwise improved for farm timbered is sufficiently cleared to be used for purposes, and if the residue is used for farm grazing purposes, the value of this acreage purposes or purposes purely incidental to might be taken into consideration. On the farming, as, for example, grazing, poultry rais- other hand, if only a small proportion of the ing, etc., the bank might reasonably lend 50 large area of timbered land is used for grazing per cent of the value of the whole farm. The purposes, the value of the timbered land should purpose for which the unimproved area is used not be considered in arriving at the value of the or is intended to be used should be considered farm as security for a farm loan. in each case. Respectfully, In the case submitted for consideration it M. C. ELLIOTT, Counsel. appears that there are approximately 14,759 To Hon. JOHN SKELTON WILLIAMS, acres in the tract. Of this acreage about 1,000 Comptroller of the Currency. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

620 FEDERAL RESERVE BULLETIN. AUGUST 1,1917. SUMMARY OF BUSINESS CONDITIONS JULY 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 Unsettled, except Active, but Good.. Above normal, Very satisfactory. Good. for Government marked by con- though hesitant. orders. servatism as to future commitments. Crops: Condition | Doing well. Generally favor- Fair Fair Fairly satisfactory Do. able. Outlook I Good do I Promising Highly satisfac- Do. tory, owing to high prices. Industries of the dis- Not very busy ex- Working under Busy.. Fully engaged.... Capital employed Fully employed. trict. cept for war or- high pressure. on profitable ders. basis. Construction, build- Nearly up to previ- Building construc- Decrease. Less active.. Somewhat re- Slight increase. ing, and engineer- ; ous high record, tion very quiet. stricted owing ing. i to high costs. Foreign trade 1; Good.. Well maintained.. Large Restricted and un- Below normal. certain. Bank clearings Increased Increase Increasing.. Increase 15 per cent increase Increasing. Money rates Firm Firm, with easing No change. Advancing. 5 to 6 per cent; in- Stationary. tendencies. ( creasing demand. Railroad, post office, j Decreased Railroad receipts Increasing.. Increase I Indicate good vol- Slight increase. and other receipts, j heavily in- ! ume of business. creased. Labor conditions j Well employed Some disturbance; j Still unsatisfactory Easier i Scarce and in de- Fair. generally fair. i mand. Outlook i Uncertain Good Uncertain Good | Very satisfactory.. Good. Remarks ! Business awaiting Freight transpor- i Reports generally ! results of emer- tion improved. I very satisfactory, j gency legislation. Selective service | will deplete ! ranks of labor. District No. 7— District No. 8 District No. 9— District No. 10— | District No. 11- District No. 12— Chicago. St. Louis. Minneapolis. ICansas City. j Dallas. San Francisco. General business Fairly active ' Good Good Good i Normal Large volume. Crops: Condition Good do Fair \ Less promising > Better than 30Good. I ; I days ago. Outlook do Improved Uncertain ; Needgeneralrains. Good Industries of the dis- Busy : Active for dull Active ' Generally busy Active Active. trict. ; season. Construction, build- Slow Decrease .do.. Gain in valuation, j Normal. Moderately active. ing, and engineer- but less permits | ing. issued. I Foreign trade | Good.... Large and increasing. Bank clearings Decrease Increase Increasing.. ; Increased... ,j 51 per cent in- Heavy increase. i i crease over 1916. Money rates !Strong ; No change Steady i Hardening. .! Firm; good de- Firmer. ! mand; ample | supply. Railroad, post-office, Increase ; Post office; no Increasing.... i Increasing ; Increase and other receipts. ! change. Labor conditions Labor shortage Condition fair, de- Satisfactory.. Scarcity of supply, Good demand; Unsettled. j mand active. shortage in farm help. Outlook Good i Very satisfactory.. Fair to good.. Generally favora- Continued activble. ity. Remarks The crops in pros- , Wheat better than Western half of Corn at critical Business activi- Livestock, lumpect should help | expected. district has suf- stage and must ties well main- ber, and mining all lines. fered severe crop have early rains. tained; outlook industries active; damage, due to encouraging for shipbuilding continued dry fall business. very active. weather. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

ACGDST 1, 1917. FEDERAL RESERVE BULLETIN. 621 GENERAL BUSINESS CONDITIONS. There is given on the preceding page a sum- trade continues good, but retailers who bought mary of business conditions in the United heavily at lower prices are allowing their stocks States by Federal Reserve districts. The re- of merchandise to run down and are, therefore, ports are furnished by the Federal Eeserve placing few new orders. This is placing the Agents, who are the chairmen of the boards of trade generally on a much healthier basis. directors for the Reserve Banks of the several The wool trade continues good with prices districts. Below are the detailed reports as of firm, although trading has been quieter. Durapproximately July 23: ing the last few days, however, there has been more activity, accompanied by rumors of new DISTRICT NO. I—BOSTON. Government orders to come. Conditions in general business have changed Both woolen and worsted mills are running but little during the past month. While the at capacity, having more orders than they can success of the liberty loan has, perhaps, had a handle in addition to Government work. stimulating effect on business identified with The National Association of Wool Manufacthe war, it has had a retarding effect on other turers' quarterly statement of July 1 shows a lines. The uncertainty regarding the future very small percentage of idle machinery and course of money rates and the supply that will that about one-third of the woolen spinning be available' for general business expansion are spindles and one-fifth of the worsted spindles factors which cause the wholesaler and retailor are engaged on domestic war orders. to go slow in his commitment. There is also While the cotton mills are well sold ahead, a good deal of uncertainty regarding emergency in many cases to the end of the year, and legislation, such as food control, excess profits prices remain firm, new business is in more tax, and regulation of prices, all of which must moderate volume than for some time. Mills, be settled before business men will enter into however, are not anxious to make contracts future commitments. Linos of trade and below current prices and new business on that manufacture that pertain to the war are exbasis is being refused. tremely busy, but where only civilian needs are With payments on the Liberty Loan, subserved business is slack, especially so in the scriptions to the Red Cross and the readjustcase of luxuries. ments of reserve requirements under the new Although the season is two or three weeks amendment to the Federal Reserve Act, the later than usual, crops are doing well. If the month of July from a financial point of view weather is favorable during the next two weeks has been a most interesting one. While money a heavy hay crop will be harvested. Both the rates were firm, the stringency lasted but a potato and peach crops are reported very good. comparatively short time, rates never going The apple yield will probably be smaller than over 6 per cent, and the redeposit of funds anticipated, as'much fruit is falling from the by the Treasury Department with the banks trees. Pasturage is better than average and a throughout the district relieved the situation good crop of corn, oats, and rye is expected. at once. While money still can not be said Boot and shoe manufacturers report much to be easy, owing to the large demands from lighter general business than at this time last the industries peculiar to the district, rates year, and were it not for Government orders are comfortable and all classes of borrowers their line would be comparatively quiet. This are having their legitimate demands taken is said to be due to the heavy stocks laid in by care of. retailers during the last year or so. Retail Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

622 FEDESAL RESERVE BULLETIN. AUGUST 1,1917. Call money to brokers is 4J to 5 per cent, with a tendency on the part of buyers to limit mostly 4J per cent. Time money, 4|- to 5J purchases to quantities urgently needed for per cent, 5 per cent being the going rate. early consumption or to meet current demands Year money, 5J to 5-J per cent. The choicest of trade. Both retail and wholesale buyers commercial paper can be bought to yield about as well as manufacturers appear to be cautious 5 per cent. Town notes, late fall and winter in making commitments. Nevertheless, busimaturities, 4J- per cent. Bankers7 acceptances, ness continues remarkably active and Govern- 90 days, 3|- per cent. ment orders are being handled in such volume Loans and discounts of the Boston Clearing that only in relatively few industries has there House banks on July 14, 1917, amounted to been extensive curtailment of activity, the $479,936,000, as compared with $455,330,000 most noteworthy examples being the autolast month, and $432,516000 on July 15, 1916. mobile industry and the building trades. Deposits on July 14,1917, totaled $3*79,176,000, Large amounts of capital are being raised for as compared with $352,879,000 on June 16, shipbuilding and the yards are working at 1917, and $331,359,000 on July 15, 1916. The high speed with prospect of even further amount "Due to banks" on July 14 was $137,- acceleration under the Government's ship- 610,000, as compared with $135,056,000 on June building program. 16, 1917. Shipments of both anthracite and bitumi- Exchanges of the Boston Clearing House nous coal are havier than ever before, but do not for the week ending July 14, 1917, were overtake demand. The increase in fire losses $277,933,601, as compared with $233,064,423 in factories, chemical works, and mining propfor the corresponding week last year and $262,- erties may be taken as evidence of operation 212,751 for the week ending July 7, 1917 (five under high pressure. days). There has been lessened buying of lead, zinc, Building and engineering operations in New and copper. Steel purchases are also reported England from January 1 to July 18, 1917, to have been somewhat reduced. Steel comamounted to $109,021,000, as compared with panies have demands much in excess of their $114,890,000 for the corresponding period of capacity and are giving preference to Govern- 1916, the highest previous year recorded. ment orders so that the mills are considerably The receipts of the Boston post office for behind on deliveries. June, 1917, show a decrease of $30,761.36, or Sellers of building materials have recently about 4 per cent less than June, 1916. For lowered prices in order to induce renewed the first 15 days of July, 1917, receipts were building activity. Paper and lumber mills about 5 per cent, or $18,073.89 less than for report some lessening of demand, but still have the corresponding period last year. business booked well ahead. Manufacturers Boston & Maine Ilailroad reports net operat- of machinery continue very busy. The econing income, after taxes, for May, 1917, as omies effected by the railroads in the way of $1,008,293, as compared with $1,488,873 for decreased passenger train mileage, heavier car the corresponding month of 1916. New York, and train loads, and more prompt unloading of New Haven & Hartford Railroad reports net freight are making possible the handling of unoperating income, after taxes, for May, 1917, usually heavy freight traffic. Several roads are as $2,069,804, as compared with $2,200,583 for recently reported to have placed extensive the same month last year. orders for equipment and rolling stock. The textile and clothing industries are par- DISTRICT NO. 2—NEW YORK. ticularly active on Government orders. High The effect of uncertainties as to the course of prices of material and labor are increasing the business and prices during the next few months difficulty of carrying on operations because of has been to induce conservatism in many lines, the larger amounts of capital required, and for Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

AUGUST 1, 1917. FEDEKAL BESEEVE BULLETIN. 623 this reason collections are somewhat less satis- trade hesitates, but their buying power is great factory than a few months ago. and they are able to get what they want. Crop conditions in the district are, as a whole, The importance of the Government's relavery favorable. tions with the iron and steel industries is Among the important recent financing opera- affecting them. It is now believed that the tions were the sale by the city of New York of Government's requirements will absorb much $55,000,000 of 4J per cent bonds at 100.6507, more of the product of the mills than was and short-term issues of $15,000,000 by the first expected, and the uncertainty as to prices Baltimore & Ohio, $9,000,000 by the Delaware and deliveries has brought about a decrease in & Hudson, $20,000,000 by the Sinclair Oil & both buying and selling. This condition is Kefining Corporation, and $15,000,000 by the likely to continue until the probable effect of General Electric Co. Corporations are show- the Government's operations has been more ing a preference for short-term notes as a definitely determined. means of obtaining funds, as being less likely There has not been any improvement in the to conflict with Government financing than labor situation. It is well known that the bond issues. amount of work of all kinds to be done increases Money rates have been very firm, call money daily, while the supply of workers, due to having ruled at or near 6 per cent from June withdrawal of men for military service and 18 to June 28 and, after a short period of easier other purposes, is being reduced. Unless there rates, touched 10 per cent on July 16. Re- is some way of bringing additional supplies of discounting with the Federal Reserve Bank by labor into the country there is apparently no member banks, however, availed to relieve prospects of the labor situation getting any the strain in the money market. Government better. The difficulty in obtaining workers, disbursements have since brought further the scarcity of fuel, and unsatisfactory transeasing of rates, the closing rate on July 20 portation conditions are some.of the difficulties being 2\ per cent. Commercial paper rates in the conducting of business about which have also felt the effect of the money firmness there is much complaint. and, from June 12 to July 7, or until well after The postal receipts of the city of Philadelthe June 28 payment on Liberty bonds had phia show an increase of $32,276, and moneybeen made, ranged from 5 to 6 per cent, but order transactions an increase of $256,981 over have since been easier at 4-J- to 5 per cent. last year. The bank clearings in Philadelphia for June DISTRICT NO. 3—PHILADELPHIA. amounted to $1,503,806,000, a gain of 2 per There has been no change, speaking gener- cent over the previous month and a gain of ally, in the great business activity prevailing 40 per cent over June, 1916. Clearings rein this section. In nearly every line, the manu- ported from the rest of the district were facturer, jobber, and retailer report the volume 199,932,000, a gain of 1 per cent over the of business large and results satisfactory, al- previous month and a gain of 15 per cent over though there has been no cessation of the diffi- June, 1916. culties of conducting business. Rates for money continue firm, rate for call Some lines, such as leather and wool and money being 5 per cent, and paper selling at their products, are adversely affected by the the same rate. Due to the high cost of difficulties of obtaining raw materials and the materials and high wages very much more uncertainty due to possible legislation as to money is required to conduct business than price control. formerly, and customers are borrowing freely The public is occasionally staggered by the from their banks and lines of credit are being extreme price of commodities, and at times used to the full. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

624 FEDERAL RESERVE BULLETIN. AUGUST 1,1917. DISTRICT NO. 4—CLEVELAND. difficulty in obtaining money. There is no Business conditions in this district have been lack of demand for houses. Savings banks aSected to some extent by the number of and other institutions lending money on mortquestions and issues relating to business that gages are not in a position to supply funds as remain unsettled. In a number of industries freely as usual for building purposes. there is some slowing down; especially is this Labor.—Labor is easier to obtain than last true in domestic trade. month, being a trifle more plentiful. It is Agriculture.—Continued rains make the crop not expected that this situation will continue, report for this district less favorable than last in view of the withdrawal from the community month. Ten days of favorable weather are through the selective service of a large number very much needed just at this time, as a large of active wage earners. percentage of the hay is still in the fields, and Mercantile lines.—A conservative tendency the wheat harvest, two weeks late, will be on is noted in both the wholesale and retail trade. next week. Corn has suffered from too much Business, while satisfactory, is not being done rain, resulting in lack of cultivation. The in the volume, under the pressure and at the situation is such, however, that improved continualhr advancing prices characteristic of a weather conditions will yet make this a very few months ago. The great conservation crugood year for the farmer. sade now going on all over the country is having Industries.—The business in steel and other its effect, and people in this section are growing metal products is in full swing, and there is much more economical in their purchases of the little doubt that all that can be manufactured necessities of life. in this country will be required for some time Collections.—Collections are comparatively to come. Orders, however, are not coming in good, but can not now be regarded as easy. as they were. There is also a temporary slack- Accounts have to be followed more closely ening in business activity in a number of other than heretofore, and there are signs that the manufacturing lines in this district. This high prices of all materials and supplies are cessation, however, is only piling up the need making it difficult for some of the business of material for the future, and is partially due houses to turn over the volume of business to the need of slowing up following the tense which is presenting itself without considerable operating period of the early summer, and also strain on their working capital. to enable mills to make necessary repairs and Money ami investments.—An active demand to prepare for the extensive program of the for monoy continues, and the lender is now near future. making the rates. Rates are from 5 to 6 per Automobile and rubber businesses are only cent for time and demand money. There is fair. Garment manufacturers report that, further improvement in investment conditions. while current business might be better, buying While there has been a falling off in the centers for fall goods is entirely satisfactory. Glass in demand deposits, time and savings deposits and pottery trades have ample business. continue to increase. The shipbuilding industry is very active. Marine architects expect to design freight DISTRICT NO. 5—RICHMOND. vessels which can be used without alteration Business in the district continues under for lake or ocean service, interchangeably. generally satisfactory conditions, the volume Transportation has improved considerably, apparently only limited by the difficulty in and there is a much easier car situation. replenishing supplies. High prices seem to be Building operations.—Building operations a negligible deterrent on transactions, but have fallen off a good deal as a result of the inflated conditions invariably produce reachigh prices of material and labor, and through tions. Expenses and overhead charges based Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

AUGUST 1,1917. FEDEKAL BESEBVE BULLETIN. 625 on present conditions must eventually undergo active, there being many specifically recorded revision and react to normal, hence, there cases of new ones and of additions and imwould appear to be urgent necessity for iprovements. practicing and teaching economy. Money is in good demand, general bank rates While seasonal conditions are somewhat ; ranging from 5 to 6 per cent. Notwithstanding variable, they average about normal through- =the demand for money, deposits, particularly out the district, and crop conditions are at the more important points in the district, reported generally satisfactory. Fertilizer sales have held their own during the past 30 days. are reported above normal, farmers apparently Discounts with this bank show an increase for making every effort to attain a maximum of the past 30 days of about $4,000,000, having production. Fertilizer profits are reported be- reached an aggregate of nearly $20,000,000. low normal, however, owing to the high cost of Subscriptions to the Liberty Loan in this dismaterial. The cotton crop of the United States trict aggregated $109,000,000, and the allotis expected to yield about the same as last ments $88,000,000. The work incident to the year—11,500,000 bales. Tobacco acreage in handling of this enormous transaction has this district is estimated at about the same at taxed the staff and clerical force of this bank last year, with a slight increase reported from severely, and much yet remains to complete all some sections. The tobacco market in South of the details. It has also taxed our member Carolina has already opened, the average banks, and the cordial cooperation which we prices being even above the high prices of last have received from them has been of great asseason. The high prices prevailing and antici- sistance and is much appreciated. Owing to pated for cotton and tobacco will yield the large payments made for the bonds by United farmers enormous returns for these crops. States certificates of indebtedness, there has been much difficulty in redistributing among The return from early truck crops in the depositary banks the payments received in district, particularly eastern South Carolina cash. The large and continued advances made and North Carolina, has been large and very by the Treasury to our allies and the amounts profitable to the producers. Early shipments needed for general disbursements have abof potatoes brought $8 to $10 per barrel, but sorbed the proceeds of the loan more rapidly the anticipated demand and high prices for than was anticipated, resulting in only limited these stimulated production to such extent deposits remaining with our member banks, that prices have declined to $2.50 to $3 per upon which necessary caPs have already heen barrel. The crop in eastern Virginia has been made. The experience acquired in the hanbelow normal and much less profitable, owing dling of this loan will prove a valuable guide to to the decline in prices. all concerned in preparing for another issue, The lumber trade is still complaining of lack of which seems to be anticipated possibly during shipping facilities, building is retarded by high the next few months, although nothing definite prices and scarcity of materials, labor scarce can yet be stated. and commanding high wages. It is reported that the Government is offering laborers 25 DISTRICT NO. 6—ATLANTA. cents per hour for camp construction and other Manufacturing and industrial lines in this pressing work. district are feeling the influence of the Govern- Gross railroad earnings continue to show an ment's military and naval preparation. Manincrease, which is being consumed by operating ufacturers and cotton producers express themand other costs. Clearings continue to show selves strongly opposed to amending the origian increase of 15 per cent, post-office receipts nal food bill as presented to Congress creating and export figures continue in full volume. thereby an uncertainty as to definite incor- Industrial developments generally continue poration of other than strictly food products. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

626 FEDERAL RESERVE BULLETIN. 'AUGUST 1, 1917. With the passage of the food bill these lines fear that when cotton and grain begin to will develop a more definite program. move the car supply will be further curtailed, There has been considerable improvement in with the result that many mills may be forced the condition of crops dependent upon high tem- to discontinue operation. perature. Seasonable rainfalls extending over Manufacturers and wholesalers of boots and the district have been of incalculable value to shoes report future orders below normal for this the producers, and especially beneficial to corn season of the year, with stocks among the reand cotton. tailers rather full. High prices are causing a There has been a large increase in all staple restriction in purchase and repair shops are doing crops. Corn has been well cultivated and the an unprecedentediy prosperous business. outlook insures increased crops ranging from Overall manufacturers are experiencing ex- 10 per cent increase in Louisiana to 25 per ceedingly good business, with prices high. cent increase in Alabama, approximating 20,- There is little difficulty for salesmen in booking 000,000 bushels increase in the district. future orders. Based on 25-cent cotton, higher Weather conditions in the past month have prices are expected. been favorable to cotton. The plant though Business is excellent with wholesalers and small is healthy and averaging about 10 days jobbers of dry goods. Orders placed so far are late, as compared with last year. Farmers are larger in volume than usual and the dates of well up with their work, crops free from grass shipmen ts much earlier. With the prospect that and growing fast. The boll weevil is crowd- cotton may continue to bring 25 cents and correing in in some sections, but not to the extent sponding record prices for all farm products, feared. The general crop condition is encour- these lines are anticipating exceptionally good aging, notwithstanding the scarcity of labor, business in the fall and winter. Stocks of merwhich will increase when the Army training chandise in the hands of retailers are rather goes into effect and perhaps cause a serious small and there is a spirit of conservatism situation at cotton-picking season. which gives promise of satisfactory collections In response to the President's call the sweet- during the fall season. potato crop has been largely increased and Money is plentiful at reasonable rates and considerable anxiety is felt over the fact that considerable financing is being carried on in "Specifications for subsistence and supplies'7 the development of new coal mines, iron ores, for the Army does not list fresh sweet potatoes. pyrites, and graphite. This is one of the chief food products of this DISTRICT NO. 7—CHICAGO. district and the farmers hope that the Army The past month has witnessed a resumption outlet will not be closed to their product. of activity in a number of lines which were at In the coal and iron fields labor continues first unfavorably affected by the outbreak of short of full requirements, and reports state the war, and banks are finding a good demand there is a lessening of output due to efforts to for their funds at firm rates. There appears organize the miners, many miners leaving the to have been but little decrease in deposits district rather than go through a strike. through the flotation of the Liberty Loan. Shipbuilding industry is very active at all The crop prospects in this district are excelports and large additions to plants are re- lent and a good oat crop seems assured. Wheat ported from Mobile and Tampa. is in better condition than a month ago and a The demand for lumber is still in excess yield in excess of the Government estimates is of the supply, which is limited strictly by predicted by some authorities. If there is the transportation facilities. Values are firm and necessary amount of hot weather during the steady and trade does not look for any change next six weeks, the corn crops should be one in this situation in the near future. There is of the largest on record. All crops seem to Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

AUGUST 1,1917. FEDERAL RESERVE BULLETIN. 627 promise well for the farmer. This should re- gradually returning, and the live-stock market, sult in a considerable business activity for while recording high prices, has a tendency to those lines dependent upon the agricultural dullness. Sheep hides and leather are quiet, communities. but the market for cattle leather is reported Reports from manufacturers, jobbers, and strong. retailers indicate a generally satisfactory con- Mail-order houses are transacting an indition. Agricultural implements are meeting creasing business in this territory. In the with good sales, but some difficulty is experi- piano trade the volume of sales is but fair, enced in securing the necessary raw material. with collections reported good. Shipbuilding There is considerable diversity of opinion with is active and steel companies find a demand regard to the automobile industry, some con- for their product fully equal to their capacity. cerns reporting a decrease and others an in- Some local jewelers report business in excess crease in business. In a part, at least, of our of last year, with imports slow, and difficulty territory the sales of the high and medium in securing deliveries from manufacturers,. priced pleasure cars have fallen off to a marked The wool market is showing a temporary hesiextent. The demand for commercial vehicles tancy, due to the uncertain position of this comis helping maintain the activity of some of the modity, but a revival is expected. Woolen plants, supporting sales records which would goods are in active demand, at substantial otherwise show a decline. prices, and mills are operating to capacity. Building is quiet, due to the high cost of Clearings in Chicago for the first 21 days of construction. This has affected the allied July were $1,462,000,000, being $300,000,000 lines, such as lumber and cement. The coal more than for the corresponding 21 days in tonnage in the States of Illinois and Indiana July, 1916. Clearings reported by 20 cities has increased during the past year and there in the district outside of Chicago amounted to is a steady demand for the output. $239,000,000 for the first 15 days of July, 1917, Distillers are making large sales, and brewers as compared with $198,000,000 for the first have a normal amount of business on their 15 days of July, 1916. Deposits in the 12 books with satisfactory collections. Central Reserve City member banks in Chi- The dry-goods business has been depressed cago were $812,000,000 at the close of business owing to the backwardness of the season and July 20, 1917, and loans were $568,000,000. the policy of economy which is being practiced by the consumer. Merchandise stocks with DISTRICT NO. 8—ST. LOUIS. retail concerns in general are larger than normal, While July is the dull season of the year, and collections are fair. The furniture business the manufacturers, jobbers, and retailers genis satisfactory, with collections good. Grocers erally report that business has held up rereport some falling off in demand, probably markably well. The outlook is reported to due to the overstocked condition of the public. be entirely favorable and there is a marked Comparisons with last year, which occasionally feeling of confidence. show a gain, can generally be accounted for by The steel industry in this district is working the increased costs. Hardware meets with a to full capacity, with the question of delivery strong demand, and certain items are difficult rather than price the main consideration. to obtain. Shoe manufacturers, jobbers of dry goods, The leather business is quiet, and tanners are hardware, and groceries all report increases curtailing, as the demand for Army equipment for the three months ending Juno 30. Coldoes not make up for the falling off in other lections have kept pace with sales and lines. Collections are satisfactory. The nor- credit losses are reported to be considerably mal demand for packing-house products is smaller than for several years past. Stocks Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

628 FEDERAL RESERVE BULLETIN. AUGUST 1,1917. in the hands of retailers are still reported to planted, are reported to bo in good shape. If be higher than normal, but seasonable weather given sufficient rainfall in the next 30 days, a during the last 30 days has stimulated retail bumper crop would seem to be assured. distribution. Reports on the oats crop are equally favor- The crop situation in this district seems able. The harvest is completed in the southern very materially improved during the past 30 and central portions of the district and is redays, due to more favorable climatic con- ported to be excellent as regards both quantity ditions. The improvement is perhaps more and quality. Reports from private sources are noticeable in the northern half of the district supported by Government estimates and indithan in the southern half. cate a yield above the five-year average and The wheat crop has been harvested in all the 1916 harvest. but the most northerly section of the district Reports from the tobacco-producing sections and threshing is under way in many sections. in Kentucky indicate an increase in acreage Beports from both private and Government j and favorable prospects for this year's crop. sources indicate that material progress has Pastures and truck gardens generally were been made in the past 30 days and that the benefited by the rain a week ago, but are still 1917 harvest in the three great wheat-pro- reported to be in need of moisture. ducing States of the district, Indiana, Illinois, The second cutting of alfalfa has taken place and Missouri, while below the five-year aver- generally and the third cutting is nearly ready age, will be considerably above the final esti- i }n the more southerly sections. mate for 1916 and larger than was expected j Apples, watermelons, and other fruits are a month ago. The quality of the grain is | reported to be in good condition. The supply uniformly reported to be excellent. j of fruits and fresh vegetables is ample and has The cotton crop has also made good progress, no doubt contributed to the decrease in the particularly in Arkansas, Tennessee, and south- index figures of the cost of living, which has east Missouri. A good rain about the middle been noted from week to week for the past of June supplied the much-needed moisture in month. The peach crop is reported to be the central portion of the district, and the cot- shorter than the other fruits. There is a heavy ton crop is reported as showing marked im- potato movement and all indications point to provement since that date. Under this in- an exceptional harvest. fluence the plant shows good growth and is | Improvement is shown in the car shortage, fruiting rapidly. In Mississippi and in a few but serious complaints are still received recounties in xlrkansas the condition is not quite garding the slow movement of freight, paras favorable, as many complaints of boll | ticularly to and from eastern points. weevil damage are received from these sections. I Postal receipts for June show little change The development of the crop as a whole may i as compared to June, 1916. Building permits, be considered satisfactory, although it is still on the other hand, show rather substantial ten days or two weeks late. decreases in all of the large cities in the dis- The condition of the corn crop continues to trict, due to delay in deliveries and the almost be satisfactory. Government reports show an prohibitive cost of building material. increased acreage in all the States, wholly or in While the bond business has improved, it is part, within this district, as compared to 1916, still below normal for the summer months, but and the forecast from the July 1 condition is in continued improvement is looked for. excess of both the 1916 yield and the five-year The commercial-paper market is firm and average. The crop is doing well and is in the active, the best names being quoted at around tasseling stage as far north as the Missouri 5 per cent, with country banks active in the river, while overflow lands, which were re- market. The brokers report that considerable Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

AUGUST 1,1917. FEDERAL RESERVE BULLETIN. 629 refinancing has been completed since July 1. DISTRICT NO. 10—KANSAS CITY. There has been no change in bank rates to Agriculture.—Crops are generally in need of customers. moisture, and corn, having reached the critical stage in its growth, is already showing some DISTRICT NO. 9—MINNEAPOLIS. damage from lack of rain. The weather has Developments in the crop situation during been exceptionally favorable for the wheat the greater part of July were unfavorable^ harvest and for the second crop of alfalfa. The States of North "Dakota, South Dakota, Reliable private estimates on production are and Montana did not receive the general soak- somewhat in excess of earlier official ones. ing rains that were required for satisfactory The oats crop throughout the district is undevelopment of the grain crops, and with the questionably the largest and of the finest exception of a narrow belt along the eastern quality ever raised. With favorable conditions border of North Dakota and. the eastern one- for the remainder of the crop year practically third of South Dakota, the damage became every agricultural product will show a highly increasingly severe 'throughout the first 20 satisfactory increase over last 37-ear with the days of the month. The outlook in Minnesota one exception of wheat. Estimates on wheat and Wisconsin is satisfactory, and North suggest the smallest yield, produced by this Dakota will probably not produce more than district in several years and a falling off of aphalf a crop of wheat, while the total yields in proximately 100,000,009 bushels as compared South Dakota will be impaired by losses in the with the final estimates last year. At the same central and western portion of the State. time, it is estimated that the district will pro- Montana, which has become a very important duce in excess of 267,000,000 bushels of corn State has suffered severely, especially m the and 70,000,000 bushels of oats over last year. northern counties; and throughout the western Live stock.—Receipts of cattle and calves at half of the district there is a shortage of feed and the markets in June continued heavy, the pasturage. statement of the local market showing cattle In the areas where small grain has been receipts 22 per cent larger than in any previous damaged, corn has also suffered, although in June, while the combined receipts of cattle eastern South Dakota, Minnesota, and Wis- and calves were 53 per cent larger than June of consin, the corn crop promises to be very good. last year. This doubtless was caused by high The flax outlook is satisfactory in practically prices and the drouthy conditions in the all parts of the district, but will be seriously Southwest. There were decreases in receipts of impaired without general rains. From a hogs and sheep at nearly alt markets as comproduction standpoint, the loss has unfortu- pared with previous Junes, although prices nately come in a year when there is an urgent made new high levels for the month. The demand for heavy production of foodstuffs. local stock of cut meats, while showing a Farmers will, however, receive, for any excess moderate increase on July 1 as compared with over feed and seed, grain prices which will ap- June 1, is, nevertheless, much lower than a proximately double those of an average year. year ago. The slaughter of hogs for the sum- It is not believed that the effect of the crop mer season continues to run considerably situation will show itself immediately upon behind last year's figures. general business, although business next spring Mining.—In the Missouri-Kansas-Oklahoma may be somewhat affected. field lead ore prices featured the month's Banking and business conditions remain market with a record maintenance. Shipabout the same, and the outlook for the re- ments, however, were less than production. mainder of the year is satisfactory. The first half year shows a remarkable gain in Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

630 FEDERAL BESERVE BULLETIN. AUGUST 1,1917. tonnage for zinc ore, over tlie same period in Mercantile.—There has been a large trade in 1916, indicating a 20 per cent increase in pro- automobiles during the year but recently this duction. The loss sustained in the prices of has shown some falling off. Missouri now rezinc ore was approximately covered by the ports approximately 127,000 licensed cars, an gain in lead values. increase of about 25,500 over last year. Kansas The metal mine production of Colorado in reports 140,000 cars under license, almost one June was normal. Much activity is reported for every two families, and that 40,000 cars from all mining camps and attempts are being have been purchased the last year. made to start many new enterprises. Opera- Implement jobbers are beginning to receive tors claim that the cost of mine supplies, es- their 1918 prices and are now writing contracts. pecially all sorts of steel and iron used, has As anticipated, these prices are approximately advanced approximately 95 per cent since May, 100 per cent higher than those of 1915 and are 1914. not guaranteed for any length of time. Trade Oil.—The features of the month were the has been good in all seasonable lines. The decontinued scarcity of material coupled with mand for threshing machinery has been much high prices, the drouth in the southwest fields, heavier than expected, indicating better wheat and the discovery of several gushers in Kansas conditions than predicted. which promised an extension of producing terri- Owing to the shortage of farm labor every tory. This is usually the season of greatest item in the list of power machinery is finding a activity and would have proven a record more ready market than ever before. Farm breaker had normal conditions existed, but tractors, as being the motive power for all wells are shut down, many drilling rigs are idle, power machinery, naturally head the list. and there is unquestionably considerable un- The flour output at milling centers, includcertainty among oil men concerning conditions ing the local mills and a group of Missouri resulting from war regulations. In spite of River, Kansas, and Oklahoma mills, from these hindrances, both Kansas and Oklahoma September 1, 1916, to July 7, 1917, indicates showed an increase in new production in June a falling off of about 5 per cent as compared over May. with the same period of the previous year, and Lumber and construction.—The lumber busi- at the present time flour mills are operating at ness during the first half of July has been quiet, the lightest rate known for many years past, but there is nothing alarming in this condition a condition caused by delay in the passage of as it is usual for the trade to be slack at this the food bill and uncertainty of action to be time of the year. The car situation has actutaken by the food administration. When this ally improved, but the relief is not yet general situation has become settled, brisk buying enough to be a factor in the market. Mills are should result and most of the mills would slowly catching up with back orders. The candoubtless be enabled to go back to full-time tonments at Fort Kiley will require approxoperation on the new crop. imately 5,000 cars of lumber and local firms are Wholesalers in most lines report business as furnishing as much of this material as their fully normal for this period, although there facilities and stocks will allow. has been some customary slackness. Trade The average net gain in valuation of building with leading wholesale dealers in dry goods, permits issued in the eleven most important notions, and kindred lines continues in excess cities of the district in June, as compared with of a year ago. Produce and dairy products the same month last year, was approximately are active, with a slight decline in prices. Sales 74 per cent, but there was a decided falling off of packing-house products are of record proat practically all these points in the number of portion. permits issued. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

AUGUST 1,1917. FEDEBAL EESEKVE BULLETIN. 631 A reliable compilation, based upon an inves- and it is of course difficult to reconcile reports tigation of a large number of ledger experiences, as to the crop's condition. However, it may indicates that the States wholly or partly be said to be fully up to normal and generally within this district have experienced an aver- good. First bales are reported in south and age increase in purchase activities of 6-|- per southwest Texas. That section has suffered cent, a reduction of indebtedness of 1-|- per more than any other from extreme dry weather cent, and an increase in payment activities of and the grade of the staple grown there will be 4^- per cent for the month of June as compared inferior. with June, 1916, indicating a very satisfactory Interests of this district are so largely agriimprovement. cultural that crop prospects, good or otherwise, There is increasing uneasiness with reference rather determine business. Any change thereto the shortage of freight cars, for while fewer fore in farming conditions is reflected in comcars will be required for the movement of the mercial activity. A month ago a drouth of wheat crop the Government requirements are several weeks duration was causing considerexpected to be heavy and wiU. unquestionably able alarm. The damage to corn and other be paramount. crops was considerable. Cattle suffered for Financial.—There has been an active de- lack of grass and water, and the outlook was mand for loans and the hardening of rates is rather unfavorable. During July rains averapparent. Postal receipts are reported in aging from one-half to several inches have increasing volume, while bank deposits con- fallen over practically all sections of the farmtinue to show high averages. The summary ing belt and the situation has cleared up of deposits in Kansas State banks reveals an materially in the past 30 days. Business acincrease over a year ago of approximately tivities at the present time are well, maintained $56,500,000. As compared with the same and all that could be expected for the midmonth last year June discloses an average in- summer. The volume of trade is good. Heavy crease in bank clearings in our 14 most impor- Government orders have stimulated some lines. tant cities of 36.7 per cent, the average for the For the past month exceedingly high temfirst six months of the current year as com- peratures have prevailed in this section and, pared with last year showing a net increase of as is usual, caused a lull in many lines, par- 43.7 per cent. The fact that the entire United ticularly wholesale and retail trade. It is too States reflects a rise of 29.4 per cent for June early for fall orders. However, reports as to over June, 1916, makes the foregoing state- various lines such as groceries, drugs, elecment of significance. trical supplies, leather and similar lines are encouraging and the present volume is quite DISTRICT NO,. 11—DALLAS. satisfactory to dealers, with collections almost While conditions are not uniform, a very without exception good. careful examination and analysis of all reports In the San Angelo section, which is the and information received justify the statement largest inland wool and mohair market in the that the small-grain crop of the district is Western Hemisphere, the clip of spring wool normal in amount and will exceed in value has made for an active trade. Conservative any ever produced. Corn, while short and j estimates of the amount of wool marketed at badly injured from drouth in many sections, San Angelo are some 4,000,000 pounds, which will suffice for actual needs. Unless some un- sold at an average price of 50 cents per pound. expected disaster overtakes the cotton crop it The distribution of these funds has enabled will not be below, and may be above, the sheep men to liquidate their obligations and average of the last few years. The area of the brought an era of prosperity in that section of cotton belt in this district is quite extensive, the West. Cattle interests continue to suffer Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

632 FEDERAL RESERVE BULLETIN. AUGUST 1,1917. from dry weather and lack of stock water, and high price of the staple, with anything like a stockmen are shipping their herds to the north normal production in this district, should where pastures may be had. make for good business the coming fall, and The second payment on the Liberty bonds, the outlook at this time therefore is quite made June 28, caused little confusion in encouraging. financial circles, and the transfer of funds was made without inconvenience. The fact that DISTRICT NO. 12—SAN FRANCISCO. man}?' banks qualified as Government deposi- Between May 1, 1917, and June 20, 1917, the taries and made payments due by them by total deposits in the national banks of the eight credit on their books rather than an actual reserve cities in this district declined $14,800,transfer of the funds relieved the situation to 000, showing a decrease of $3,200,000 in Los a large extent. Member banks are approach- Angeles, $9,400,000 in San Francisco, $300,000 ing the height of the borrowing season and as in Portland, $1,100,000 in Spokane, $500,000 a result the demands upon this bank are quite in Ogden, and $900,000 in Seattle. Increases heavy, loans showing an increase of some were shown by the banks in Salt Lake City and $2,000,000 in the past 30 days. However, no Tacoma. This shows the effect of checking for change is noticeable in interest rates and they investment in Liberty bonds and for all other continue easy. The supply of loanable funds purposes. Excluding deposits from, other banks, is quite equal to the demand. however, a slight net increase is shown, those of Clearings at the principal cities of the dis- San Francisco and Los Angeles alone showing trict for the month of June showed an increase a decrease—slightly more than $1,000,000 in of over 51 per cent over the same month last each city. Between the statements of March year. This is the largest increase noted since 5 and June 20 the State banks of California the fall months of 1918. The figures for June show an increase in deposits of $863,000. were as follows: 1916, $123,533,286; 1917, About one-third of the deposits in the na- $187,383,507; increase 51£ per cent. tional banks of Ogden, Utah, now aggregating Post-office receipts for June, 1917, over the approximately $9,000,000, are from banks in same month last year show an increase of 7J the tributary territory, evidencing a growing per cent, the figures being: 1916, $308,582; importance as a banking center, because of 1917, $331,876; increase 71 per cent. which the Federal Reserve Board has desig- The construction of the three cantonments nated Ogden as a reserve city. The only effect in this district has caused activity in various of this is to increase the amount of the required lines, particularly in building materials. deposit with the Federal Reserve Bank from 7 The labor situation has changed little in the per cent to 10 per cent of demand deposits. past 30 days. The heavy demands of north- This increases the number of reserve cities in ern concerns who have sent agents to this dis- this district from seven to eight. trict have caused a scarcity of labor in many Bank clearings of 19 principal cities of this lines. There has recently been some material district during the first six months of 19.17 inincrease in wages to common labor in many creased 38 per cent over the corresponding parts of this State, which has tended to settle period last year, Salt Lake City leading with 53 conditions, and no disturbances are reported. per cent, followed by Seattle with 45 per cent The recent trouble in the Arizona copper min- and San Francisco 44 per cent. ing section has affected business to some ex- Recent high temperatures in southern Calitent. Our information is, however, that these fornia reached the extraordinary maximum of troubles have recently been settled. | 116° at some points. Citrus fruit was un- Much will depend on the progress of the favorably affected, particularly navel oranges, cotton crop within the next 30 days. The which mature about December, the damage Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

AUGUST 1,1817. FEDERAL BESEEVE BULLETIN. 633 being estimated as high as 75 per cent, with 50 the useful combination of food, clothing, and to 60 per cent damage estimated for Valencia transportation. The meat is said to be exceloranges and 25 per cent for lemons. Beans, lent and sells at 20 to 35 cents per pound in olives, and walnuts have likewise suffered some- Seattle. what. Hot winds in Washington and Oregon, Shipbuilding is remarkably active and concoining at a critical time, have also somewhat tinually extending for both wood and steel curtailed the crop of wheat. Subsequent rains ships. It is said that at the present rate of and cool weather in these two States have been expansion this industry will soon assume an helpful. Incidentally Luther Burbank, the importance equal to that of the entire agrifamous agricultural scientist, after 10 years cultural production west of the Rocky Mounexperimenting, announces the development of tains. a variety of wheat which is said to yield from Lumber production is apparently at maxi- 50 to 70 bushels per acre. Aside from the mum, stimulated by increased construction of shrinkages mentioned, the general production wooden ships and Army cantonments. of foodstuffs in this district is confirming the Labor shortage is becoming serious. Conprevious prediction of a large increase over last siderable trouble in Arizona mines has been year. The July 1 Government report, for in- caused by I. W. W.'s, of whom several hundred stance; estimates for Idaho, Oregon, Washing- have been deported. They have also made ton, and California 44,000,000 bushels of po- ominous threats in the Northwest. In some tatoes compared with 32,000,000 last year. places United States troops have been called Barley in California estimated at 1,000,000 out to maintain order. tons, will double last year's production. In Mr. A. Kains resigned as governor of the Utah, Oregon, Idaho, and Nevada there are Federal 'Reserve Bank of San Francisco on July probably 30,000 acres of sugar beets more than 11, in order to accept the presidency of the ever before. American Foreign Banking Corporation of Idaho will produce twice as many apples as New York, now organizing. His successor last year, although the crop of Washington and has not yet been chosen. Oregon will be somewhat less. The California The Spokane branch of the Federal Reserve prune crop will be large, probably reaching Bank has been organized and will be prepared 200,000,000 pounds, but that of the Northwest to render service similar to that of the head will be light. office to member banks in its territory, which will be substantially that known as the Inland Utah is foremost of all States in the condi- Empire. Through this and other branches to tion of her crops, the Government estimate be established later, the benefits of the changed being 107.5 per cent of normal, with 107.2 per methods in banking will be much more comcent for Nevada. pletely extended to all sections of the district The salmon pack is expected to be heavy as than would otherwise be possible. this is the "sockeye" year, it being the experi- San Francisco Clearing House banks now ence that the sockeye variety is very abundant settle clearing-house balances by checks on every fourth year. The new pack will go upon the Federal Reserve Bank, one nonmember the barest market ever known. bank having opened a deposit account with Alaska has had many interesting developthe Federal Reserve Bank for this purpose. ments, of which the following is one: In 1892 a Los Angeles clearing-house banks have adopted small herd of reindeer was brought to Alaska a plan by which the clearing-house manager, from Siberia. Now there are 76 herds, numimmediately after the exchange of checks, bering 70,243 animals, the increase last year telegraphs the result to the Federal Reserve being 20 per cent, although 9,000 were killed Bank which debits or credits the respective for meat and skins. These animals provide accounts and wires back confirmation. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

634 FEDERAL RESERVE BULLETIN, AUGUST 1,1917. CLEARING STATISTICS, the growth of the Federal Reserve check collection system, works in the same direction Some indication of bank activity and genand accounts probably to a large extent for the eral business development since July, 1914, is relatively small increase of clearings during the afforded by the subjoined figures of clearingpresent year, when the volume of collections by house transactions and attached diagram. the Federal Reserve Banks shows practically The business depression caused by the outcontinuous increases from month to month. break of the war is seen to have continued until about October, 1915, when, following the Bank clearings in New York and other cities of the United general industrial revival, the amount of checks States, 1914 to 1917; also check collections of the Federal Reserve Banks since July 15,1916. handled by the New York Clearing House and the monthly total for the country as a [Data takenfrom Commercial and Financial Chronicle. Figures expressed in millions of dollars.] whole show increases of 3.1 and 4.4 billions, or about 30 per cent over the figures of the imme- Clearings New R Fe e d se e r r v a e l d d i u a r t i e n l g y p th re e c e y d e i a n r g f m oll o o n w th in . g C a l p e p a a ri r n e g n tl o y p e c r o at n i t o i n n s - o Y u N t o e s r i w k d . e cle Y ar o i r n k gs. Total. c le h B c e t a c i n o k k n c s s o . ' 1 lued on about the same level until the month 1914. of October, 1916, when another large increase in July 6,313 8,180 14,493 the monthly total volume of checks cleared— A Se u p g t u em st ber 5 5 , , 3 4 5 0 1 0 4 4 , , 5 62 8 8 1 1 9 0 , , 9 0 3 2 2 8 this time of about three billions—is shown. A N O o ct v o e b m er b . e . r.. 6 5 , , 1 6 2 8 6 1 5 5 , , 6 4 1 0 0 0 1 1 1 1 , , 7 0 3 8 6 1 large share of the increases shown is due un- December. 6,114 6,530 12,644 doubtedly to the continuous rise of prices of January.... 1915. 6,196 7,287 13,483 commodities and stock-exchange securities, M Fe a b rc ru h ary.. 5 6 , , 4 2 3 8 0 3 6 7, , 5 4 6 8 5 2 1 1 1 3 , , 9 8 1 4 2 8 also to the renewed activity of the stock ex- A M p a r y il 6 5 . , 2 9 0 9 1 2 8 8, , 8 6 1 3 2 5 1 14 5 . . 6 0 2 1 7 3 changes, especially at New York City, which J Ju u l n y e 6 6 , , 2 0 3 9 4 7 8 8 , , 6 0 9 2 5 5 1 14 4 . , 9 1 2 2 9 2 reached unexcelled records during the late part A Se u p g t u em st ber 5 6, , 1 7 3 3 9 3 9 8 , . 6 5 2 3 5 7 1 1 4 5 ^ .7 2 6 7 4 0 of 1916 and the early part of the present year. N O o ct v o e b m er ber. 7 7 , , 4 5 1 5 3 6 1 1 2 1 . , 7 8 3 2 9 9 2 1 0 9 . , 1 3 5 8 2 5 December.. 7,979 12,332 20,311 That the total amounts of checks cleared 1916. are but an imperfect measure of the actual January.... 7,808 12,327 20,135 February. 7,186 11,107 18 293 volume of banking and general business has March 8,196 12,578 20,774 April... 7.756 11,623 19,379 been the common opinion of those who have May 8,159 12.561 20.720 June 8,100 12,55-1 20,651 been engaged in the collection and analysis of July 7,929 11,439 19.368 August 7,985 11,767 19.752 1,542 these data. It has been pointed out repeatedly September 8,406 14,356 22,762 2,042 October 9.901 15.712 25,613 2,442 that amalgamation of banking institutions, the November. 10,051 16,654 26,705 2.992 December. 10,259 16,936 27,195 3,266 organization of country clearing houses, and 1917. the large increase in the use of pay-roll checks January.. 10.489 15,127 25,616 2,924 February.. 8,836 12,794 21,630 2,975 in industrial centers frequently render conclu- March 10.566 14.229 24,795 2,561 April... 10,363 14,653 25,016 3,319 sions based upon comparisons of clearing sta- May 10,736 15,584 26,320 4,178 June 10,635 16,099 26,734 4,530 tistics for different places and periods of doubtful validity. A more recent development, viz., th * e 1 F 5 ig th u r o e f s e f a o c r h t m he o n F t e h d . eral Reserve Banks relate to periods ending on Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

CLB4R1N6 HOUSE 0PERATl0NS,JULri9M70JULYl8% AiJO CHECK 'COLLECTIONS- QFTNE FEDERAL RESERVE BANK$,/3/e-/7. •"•••["•"prj-: (monthly totals) 635 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

636 FEDERAL RESERVE BULLETIN. AUGUST 1,1917. DISCOUNT OPERATIONS OF THE FEDERAL ton, New York, and Chicago banks. Of the RESERVE BANKS. latter total, trade acceptances (two-name paper) constitute $2,509,122, handled by all Discount operations of the banks during the banks, except Chicago, and commodity June were $750,270,739, a total in excess of paper, largely secured by cotton—$769,354 the total investment operations of the banks discounted by six banks. during the entire calendar year 1916. Of the Discounts for the first half of the present total discounts for the month, $664,376,412, year, including collateral loans to member or 77.3 per cent were in the form of member banks7 collateral notes. Of the latter amount banks, aggregated $959,181,169, of which colover 80 per cent was handled by the New York lateral notes were $766,387,991, while bank, which reports the discount during the $7,124,734 of the total are specified as trade month of 130 such notes aggregating acceptances and $5,748,792 as commodity $541,090,034. Other banks reporting sub- paper. As compared with corresponding 1916 stantial, though much smaller, amounts of figures, discounts of trade acceptances inthis class of paper in the order of volume creased almost four-fold, while discounts of handled are Philadelphia, Boston, Richmond, commodity paper declined over 30 per cent. and Chicago. The larger portion of these On the last Friday in June the banks had on notes, or about 53 per cent was secured by hand $197,242,135 of discounted bills as United States certificates of indebtedness and against $47,588,087 at the end of May. Of the interim certificates for Liberty bonds, and the total, $90,338,627 was made up of collateral remainder by customers' paper. About 92 per notes, secured by commercial and bank paper, cent of the paper discounted during the month $25,674,079 of collateral notes secured by was 15-day paper. This percentage runs in ex- United States securities, $5,802,315 of agricess of 99 per cent in the case of the New York cultural paper, $5,258,996 of live stock paper, bank, which during the month under review and $69,727,409 of industrial and commercial accommodated some of the leading city banks paper. Over three-fourths of all the collateral in connection with the flotation of the Liberty notes were held by the New York and Philaloan, largely through the discount of 1-day delphia banks, over one-half of the agricultural collateral notes. Accordingly the average size paper by the Richmond and Dallas banks, and of the collateral notes discounted by the New over 85 per cent of the live-stock paper, by York bank is in excess of 4 million dollars, the Dallas, Minneapolis, and Kansas City while the average size of all the 549 collateral banks. notes discounted by all the 12 banks is in ex- During the month the number of member cess of 1.2 million dollars. banks increased from 7,651 to 7,657, while the Aggregate discounts for the month beside number of discounting members increased from the 664.4 million dollars of collateral loans, 590 in May to 900 during the month under called forth by the special exigencies of the review. Especially large increases in the num- Government loan, include $85,894,327 of cus- ber of accommodated member banks are shown tomers' paper rediscounted with the Federal for the Eastern, the Chicago, and the San Fran- Reserve Banks, nearly one-half with the Bos- cisco reserve districts. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

AUGUST 1. 1917. FEDERAL RESERVE BULLETIN". 637 Bills discounted by each Federal Reserve Bank during June, 1917, distributed by sizes. To 8100. Ov*M«,to Over $250 to Over S500 to Over §1,000 to §500. 31,000. 32,500. {& Banks. Num- Num- Num- Num- Number of Amount. ber of Amount. ber of Amount. ber of Amount. ber of Amount. pieces. pieces. pieces. pieces. pieces. Boston 1 $100 38 86,765 | 119 S48,254 132 §107,339 260 §303,445 New York 107 135 23,639 1 157 59,887 164 126,554 241 428,338 Philadelphia 447 20,627 113 18,305 154 61,061 183 150,026 165 303,340 Cleveland. - - 6 483 44 7,567 37 13,271 32 27,590 115 219,762 Richmond 119 9,871 349 65,252 479 189,154 462 381,871 467 806,324 Atlanta 51 4 266 136 24,270 183 295,123 183 668,624 174 91,066 Chicago 17 1,671 103 18,173 113 47,771 92 67,687 184 345,606 St Louis 1 100 25 4,753 41 15,876 42 31,797 41 78,763 Minneapolis 6 490 97 17,304 208 81,458 267 258,551 359 571,656 Kansas Cit^* 8 664 191 33570 276 100,744 193 136,748 151 238,972 Dallas " . . .. 62 3,519 296 50,230 94Q 91,546 102 146,318 201 336,244 San Francisco 8 1;591 j 16 5,853 23 17,646 157 344,720 Total 825 49,129 1,535 271,419 j 2,032 1,009,998 1,875 2,120,751 2,515 4,068,236 Per cent 0.1 0.3 -- 1 2 2.5 Member banks' collateral notes .! Ove S r 5 $ ,0 2 0 ,5 ( 10 to Ove S r 1 0 S , 5 0 , 0 0 \ 00 to Over 310,000. Total. Per Banks. Num- Num- Num- Number cent. ber of Air.oimt. ber of Airiount. ber of Amount. of pieces. Amount. pieces. pieces. pieces. Boston 622 S3,785,143 294 82,903,101 318 S1<? 371,378 1,784 §19,525,525 22.7 New York 724 3,384,841 241 2,176,655 139 5,679,172 1,908 11,886,424 13.8 Philadelphia 358 1,723,563 146 1,348,860 111 408,622 1,677 7,034,404 8.2 Cleveland 188 837,446 I 103 806,667 99 624 5,400,390 6.3 R A i t c la h n m ta ond . . 4 1 2 6 6 9 1,8 1 3 5 0 1 , 3 5 4 1 7 3 I ! 14 7 0 1 1,1 5 5 5 5 4 , , 4 69 0 0 3 76 i;6 6 5 fi0 4 ,2 5 5 2 5 8 2,5 9 1 9 8 1 6 2, , 4 0 5 9 0 2 , , 0 4 8 7 0 7 2 7 . . 9 1 Chicago . . 386 1,820,633 I 177 1,612,821 188 I 496,605 1,260 11,410,967 13.3 St. Louis ........ 105 496,807 ! 39 324,645 35 475,062 329 2,427,803 2.8 Minneapolis 251 1,073,821! 136 1,059,061 120 348,249 1,444 6.544,832 7.6 Kansas City. .. 84 371,928 33 244,586 32 i 028,796 968 2)156,008 2.5 Dallas 114 419,219 47 368 993 114 AQI 252 1,185 1,907,321 !F 2.2 San Francisco 701 3,463,803 203 1,732,625 150 3 491,858 1,258 9,058,096 10.6 Total .. 4,128 19,359,064 | 1,630 14,288,107 1,406 44,727,623 15,946 85,894,327 1100.0 Per cent 22 5 16 6 52 1 100.0 Member banks' collateral not^s 20 95,500 ! 34 331,100 495 663,949,812 549 664,376,412 Bills discounted during the month of June, 1917, and 1916, and the six months ending June, 1917 and 1916, distributed by <' Collateral notessecured by U. S. certificates of Collateral Banks. in o d r e i b n te te d r n im ess n b o y t e c s o se m c m ur e e r d - acc T ep r t a a d n e ces. Co p m a m pe o r d . ity d A is l c l o o u th n e ts r . Total. certificates cial paper. for liberty : bonds. Boston 5413,700 277,500 $334,442 819,191,083 §46,216,725 New York *36,69i,500 204, 393,534 358,264 11,528,160 552,976,458 Philadelphia.. 680,650 35,009,849 78,343 6,956,061 42,724,903 Cleveland 1,957,000 3,827,600 499,473 4,900,917 11,184,990 Richmond 66,500 23,938,750 267,503 §209,649 5,615,325 30,097,727 Atlanta 35,000 346,000 260,903 458,873 1,730,304 2,831,080 Chicago 6,075,000 7,674,400 11,410,967 25,160,367 M St. i n L n o e u a i p s olis... 2,24 6 3 0 , , 0 0 0 0 0 0 J: 0 07 5 8 5 , , 0 0 0 0 0 0 34 4 4 9 , , 0 2 9 0 3 4 2 1 1 2 , , 4 2 0 5 0 2 2 6 , , 0 47 7 4 1 , , 2 4 2 5 8 8 4 9 , , 5 8 4 6 2 5 , , 8 8 0 3 3 2 Kansas City.-- 4,231,429 455,000 305,610 65,000 1,785,398 11,842,437 D Sa a n l l F a r s a . n .. c .. i * sc .. o . . . 1,557,000 5,305,000 3 8 , ,2 0 7 1 1 6 2,180 9 1 , , 0 9 4 0 7 4 , , 6 3 4 0 5 5 3 9, , 0 7 5 G 8 9 , , 0 3 9 2 6 1 Total, June, 1917 354,015,779 310,360,633 2,509,122 769,354 82,615,851 750,270,739 Total, June, 1916 275,700 712,000 10,672,300 11,660,000 Total, January-June, 1917. 706,38I7,991 7,124,734 5,748,792 179,919,652 959,181,169 Total, January-June, 1916. 1,803,200 8,359,400 52,381,200 62,543,900 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

638 FEDERAL RESERVE BULLETIN AUGUST 1,1917. Amounts of discounted paper, including member banks' collateral notes, held by each Federal Reserve Bank on the last Friday in June, 1917, distributed by classes. Member banks' collateral notes. Banks. Agr p i a c p u e lt r u . ral Li p v a e- p s e t r o . ck a C nd o p m in a m p d e u e r r s . c tr ia ia l l Secured by • U S ni e t c e u d r e S d t a b t y es A p ll a p o e th r. er Total. eligible i bonds and paper. : certificates of '• indebtedness. Boston , 5200 | 861,936 84,726,200 §185,000 618,773,336 New York.... 146,883 S5,786 304,181 51,010,734 20,576,500 $78,362 78,122,451 Philadelphia., 129,297 271,779 16,379,993 552.650 22,333,719 Cleveland 27,835 18,376 291,520 3,327,600 1,697,000 9,362,331 Richmond 1,922,729 211,542 937,916 3,676,200 21,500 271,954 12,041,841 Atlanta 473,425 323,142 741,740 208,000 3,000 5,880 3,755,187 Chicago 747,362 11,600 859,310 7,050,400 450,000 18,118,672 St. Louis 129,277 75.885 933,247 1,525,000 30,000 19,513 5,712,922 Minneapolis... 708,107 1,488; 114 294,602 429; 500 1,268,000 10,188,323 Kansas City... 256,831 1,430.409 587,203 1,860,000 371,429 " 65," 666' 5,570,872 Dallas 1,052,738 1,589; 922 975,092 145,000 519,000 4,281,752 San Francisco. 207,626 104,220 6GS, 883 8,980,729 Total.... 5,802,315 5,258,996 | 69,727,409 90,338,627 : 25,674,079 440,709 197,242,135 Percent 2.9 2.7 ! 45.8 i 13.0 ! .2 100.0 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

AUGUST 1, 1917. FEDERAL RESERVE BULLETIN. 639 Commercial paper, including member banks1 collateral notes, discounted by each Federal Reserve Bank during the three months ending June, 1917, distributed by maturities as of date of discount. Number Maturities. of Number banks Total accom- commer- Districts. T o a f a t J n e u k n n d s e. q d u u a ri r n te g r 1 W 5 d it a h y in s. 1 F d 6 a r t o y o m s 3 . 0 31 F d r a t o o y m s 6 . 0 6 F d 1 a r t y o o s m . 90 90 O d v a e y r s. p c a o p u c e n i r a t l d ed is . ending June 30. l i I District No. 1—Boston: Connecticut 53 $373,011 S345,981 §882,312 32,390,388 Maine 64 225,000 5,000 230,000 Massachusetts 154 50,733,451 6,222,184 2,262,925 3,541,009 62,759,569 New Hampshire 50 450,801 131,688 | 227,877 19,712 830,078 Rhode Island 17 725,000 725,000 Vermont 48 176,128 101,166 ! 203,062 52,985 3200 533,541 Total. 392 80 53,183,391 j 6,806,019 j 2,982,948 4,496,018 200 ! 67,468,576 District No. 2—New York: New York 477 555,447,122 I 804,386 1,666,814 1,517,885 j 559,436,207 New Jersey 133 800,018 j 551,010 334,378 619,741 ! 2,305,147 Connecticut 15 150,000 ! 5,500 29, 700 34,400 219,600 Total 108 556,397,140 i 1,360,896 2,030,81)2 2,172,026 561,960,954 District No. 3—Philadelphia: Delaware New Jersey '""920*274'| " 197,758 338,958 314,641 7,500 1,779,131 Pennsylvania. 58,607,844 j 2,897,769 1,693,860 569,964 6,796 63,776,233 Total 623 94 59,528,118 3,095,527 2,032,818 884,605 14,296 65,555,364 District No. 4—Glevoiand: I Kentucky 68 2! 16,100 i 48,600 78.269 65,738 208,707 Ohio 374 54 16,177,210 ! 1,120,680 1,680', 792 896,137 12,387 19,837,206 isylvama.. 299 10 2,026,882 I 222,362 578,842 206,340 3.034,426 West; Virginia. 13 Total. 754 06 2,287,903 1,168,215 12,387 I 23,080,339 District No. 5—"Richmond: District of Columbia 15 it 105,000 70,204 226,750 401,954 Maryland 96 13,103,653 245,022 922,054 561,914 400 14,838,043 V N So i o r u r g t t i h h n i C C a a a r r o o l l i i n n a a 1 8 8 4 0 2 3 j | 4 5 8 3 38 1 1 , , , 9 2 3 2 8 5 3 3 8 , , , 5 1 0 9 6 8 1 1 5 1, 4 5 0 1 6 4 8 2 1 , , , 9 0 V 6 2 o 2 1 S 1 1 1 , , , 2 1 1 7 9 4 2 0 7 , , , 3 8 3 3 5 5 8 1 2 1 1 1 , , , 5 2 1 3 5 7 3 1 9 , , , 7 4 2 9 4 5 8 7 0 2 5 2 8 8 0 6 9 , , , 2 0 6 3 8 9 1 2 4 4 4 4 2 , , , 7 8 4 9 0 8 8 7 3 , , , 4 2 1 9 3 0 0 6 8 Wesi; Virginia 102 | 5,000 5,200 10,200 Total. 520 168 54,778,490 J 2,343.180 4,537,795 4,783,159 896,407 67,339,031 District No. 6—Atlanta: Alabama 94 ! 161,502 | 189,193 469,507 461,525 234,965 1,516,692 Fioriaa 55 470,020 i 60,700 171,315 93,733 38,444 837; 212 Georgia 101 1,861,382 I 520,875 1,261,132 579,574 227,404 4.450,367 Louisiana 22 6,500 6,628 8,570 39,647 61,345 Mississipoi 18 i 101,318 ! 13,419 36,255 150,992 92 250,151 I 163,223 356,970 182,176 I 32,699 986,219 Tennessee Total. 382 113 2,84-1,373 I 956,910 2,301,807 1,325,578 I 573,159 8,001,827 District No. 7—Chicago: Illinois 315 12,784,664 j1,0-11,757 811,603 782,912 66,855 15,487,791 Indiana 195 2,391,851 ! 263,304 217,270 239,481 ! 118,9-14 3,230,853 Iowa 354 949,596 ''•155,765 j 205,921 106,287 j 74,133 l,4i)l,702 Michigan 76 5,025,646 i 432,3.19 ! 732,36{> 285,452 i 62.297 6,538,110 Wi k 1G5 1,190,050 j1,050,700 2,394,059 185,621 32', 981 4,853,411 Total. 1,045 i 118 I 22,341,807 j 2,913,875 4.361,219 I 1,599,756 355,210 31,601,867 District No. 8—Si. Louis: I Arkansas 66 33,702 i 27,007 i 77,889 29,362 178,327 Illinois 157 i 98,179 I 89,694 i 61,225 9,060 267,983 Indiana 61 ! 125,000 ' 5,403 ! 12,500 149,752 Kentucky 65 ! t 222,060 |. 35,000 i 75, GOO 332,060 Mississippi 17 I 900 : 150 I 24,650 : 60,490 21,086 111,276 Missouri 84 | 6,560,459 i 1,722,376 I 1.865,005 !2,501,195 54,540 12,703,635 Tennessee 20 ! 22 i 241,230 ! 148,,830 '188,461 j 100,776 2,900 682,197 Total 470 i 52 I 7,281,590 ; 1,902,337 \ 2,235,280 j 2,889,075 ! 116,948 14,425,230 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

640 FEDERAL RESERVE BULLETIN. AUGUST 1,1917. Commercial paper,', including member banks' collateral notes, discounted by each Federal Reserve Bank during the three months ending June, 1917, distributed by maturities as of date of discount—Continued. Number Maturities. Districts. N m o a b f u e t a J m m o e n u f n k b b n d s e e e r r . m q a e d b o u c n u a c a d d o r n o r i f i a k n m t n t e s g g e - r d i ' i j j 1 W 5 i d t a h y in s. 1 F d 6 a r t o y o m s 3 . 0 • I 3 d 1 F a r t y o o s m . 60 6 F d 1 a r t o o y m s 9 . 0 90 O dd v a e y r s, j p c c a o o T p m u c e o i n r m a t tt a l d de e l i d r s - . - June 30. ! _L District No. 9—Minneapolis: Michigan 32 §24,500 I $31,732 $6,468 $10,156 872,856 Minnesota 291 5,012,122 j 2,008,665 6,032,198 2,239; 835 §466,198 I15,759.018 North Dakota 156 26,971 10,343 52,750 859,965 I 950;029 South Dakota 126 1,510 16,553 272,340 j 290,403 Montana 94 230,000 5,000 42,716 7,550 219,700 ! 504,966 Wisconsin 37 8,120 30,675 56,382 88,276 183,453 Total 736 111 5,274,742 2,103,043 6,149,617 2,415,120 1,818,203 I 17,760,725 District No. 10—Kansas City: Colorado 121 31,572 2,277 4,557 25,903 64,309 Kansas 226 484,691 152,138 81,948 94,797 269,472 ! 1,083,046 Missouri 55 9,809,175 356,232 339,407 52,296 8,565 i 10,565,675 Nebraska 193 425,000 15,000 18,851 7,515 7,082 ! 473,448 New Mexico 9 19,959 9,262 79,581 79,865 i 188,667 Oklahoma 305 1,941,233 168,814 684,558 668,103 549,327 j 4,012,035 Wyoming 36 16,000 20,500 i 36,500 Total 945 103 12,691,671 712,143 I 1,136,303 922,849 960,714 j 16,423,680 District No. 11—Dallas: Arizona 1 24,886 13,373 18,160 56,419 Louisiana 12 1 855 3,025 1,000 17,078 21,958 New Mexico 30 11 102,673 30,990 322,653 134,779 214,295 805,390 Oklahoma 32 8 30,000 21,000 32,140 9,033 154,816 246,989 Texas 546 105 2,862,346 426.349 1,242,971 940,065 1,306,350 ! 6,778,081 Total 626 126 2,995,019 479,194 ; 1,625,675 1,098,250 1,710,699 I 7,908,837 District No. 12—San Francisco: Alaska 1 Arizona 7 California 271 468,641 2,552,382 2,756,349 2,857,077 93,054 8,727,503 Idaho 61 12,646 1,025 9,625 7,650 35,484 66,430 Nevada , 10 30,000 20,000 50,000 Oregon 82 106,834 237,840 274,576 230,589 11,258 861,097 Utah 24 19,370 24,154 192,128 260,000 8,112 503,764 Washington 78 •I- 385 4,404 4 789 Total. 534 46 637,491 2,835,401 j 3,232,678 3,355,701 152,312 \ 10,213,583 REC AP IT UL AT IO N. ! No. 1—Boston 392 53,183,391 6,806,019 2,982,948 I4,496,018 200 67,468,576 No. 2—New York 625 108 556,397,140 1,360,896 2,030,892 '2,172,026 561,960,954 No. 3—Philadelphia 628 94 59,528,118 3,095,527 2,032,818 884,605 14,296 65,555,364 No. 4—Cleveland ! 754 66 18,220,192 1,391,642 2,287,903 1,168,215 12,387 23,080,339 No. 5—Richmond j 520 168 54,778,490 2,343,180 4,537,795 4,783,159 896,407 67,339,031 No. 6—Atlanta i 382 113 2,844,373 956,910 2,301,807 1,325,578 573,159 8,001,827 isTo. 7—Chicago 1,045 118 22,341,807 2,943,875 4,361,219 1,599,756 355,210 31,601,867 No. 8—St. Louis 470 52 7,281,590 1.902,337 2,235,280 2,889,075 116,948 14,425,230 No. 9—Minneapolis i 736 111 5,274,742 2; 103,043 6,149,617 2,415,120 1,818,203 17,760,725 No. 10—Kansas City ! 945 103 12,691,671 712,143 1,136,303 922,849 960,714 16,423,680 No. 11—Dallas 1 ! 626 126 2,995,019 479,194 1,625,675 1,098,250 1,710,699 7,908,837 No. 12—San Francisco | 534 637,491 2,835,401 3,232,678 3,355,701 152,312 10,213,583 Total for 3 months ending June, 1917 7,657 1,185 796,174,024 26,930,167 34,914,935 27,110,352 1 6,610,535 891,740,013 Per cent Total for 3 months ending June, 1916. 10,855,500 7,374,100 9,062,800 7,084,600 34,377,000 Total for 3 months ending June, 1915. 4,680,800 11,207,000 13,684,700 6,528,500 36,101,000 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

AUGUST 1,1917. FEDERAL RESERVE BULLETIN. 641 Distribution, by sizes, of bills bought in open market by all Federal Reserve Banks during May, J917, and the six months ending June, 1917 and 1916. To £5,000. j To §10,000. To 825,000. To $50,000. To 5100,000. 'OverSi00,000.- Total. Acceptances bought in | open market. I CJ i si Bankers' acceptances :2,250! 5,926,794:1,45711,468.4352,58 45,208,,O5oj 7!"8-!! 34,806,110 304i 26.137,7471 59! 9,934,387:7,438 132.481,553! 97.9 Trade acceptances j ' 47| 126,625 40| 306.046 57| 936', 9. 334,512 2! 169,193'; 41 875.530: 159 2,748,144! 2.1 Percen T t o tal, June, 1917... | j 2 .29"| ; 6.053,4 4 1 . .9 5 ' 1 .497J ! 11.774.4 8 S .7 1 2, 6-U j | 46,144 3 ,2 4 8 .1 8 ! ! 793 : , 34.1J0 2 . 5 6 . 5 2 2 306 : 26.303 1 . 9 9 . 1 5 0 ; : 63J10,809 8 ,9 . 1 0 7 =7,59 ] ? ! 135,229:697 ' : May, 1917 !l,305! 3,571,384' 890: 7,024,753 1,580i 27,835,025: 442 18,081,746j 181 15,377,503. 46 10,098,085 4,444: 82,588,496 April, 1917 ! 748=1,689.086! 270! 2,147,380; 6471 13,231,092' 257 11,003,120! 87 7,155,097 38 6,186.816 2,047: 41,312,591 March, 1917 j 389 876,506; 1751,381,0291 363! 6,976,406 171 7,185,125! 86 6,801,912 2a 4,930) 660-1,209! 28,151,638 February, 1917 1 819| 2,175,6391 777 6,324,01811,248 22,367,062 40116,483,974 180 15.273,481. 49 8,012,105 3,474j 70,637,179... January, 1917 1 3901,023,210 483:1,706,069' 300, 5,238,206. 152 6,898,412 48 3; 891,515 11.1,859,7681,384= 20,6.17,180... Total, 6 months ending j ' ' ' ' J,1 uLUnLeU,, 1XV9 X1 I7 |5,94815,289,24414,092J30,357.730 6,779 121.792,979.2,216i 94,393,029 888; 74,806,448; 232 :11? 897,351j20,lo5378,786.7811 To_ Jt. —a 1l , /6» monJ.t ih s ~e njdi •i ng i i ' • " i : ! | ! June, 1916 '1,915 5,671,9521,85015,310,974 2,247 39,360,663 598! 23,524,284 277| 23,231,447: 108^0,573,414;6,995127,672.734! I I l 1 Of the above amount, bankers' acceptances totaling $122,075,051 were based on imports and exports and S10,-106,502 on domestic trade transactions. 2 All of the above trade acceptances were drawn abroad on importers in the United States and indorsed by foreign banks. Acceptances bought in open market and held by Federal Reserve Banks as per schedules on file with the Federal Reserve Boojrd on dales specified, distributed by classes of accepting institutions. Banker's acceptances. Trade acceptances Date. M ba e n m k b s e . r ! | c N b o e o m r n p t m r a u n e i s n e t i s - . N be b o r a n n S m k t e a s m . te - P b r a i n v k a s te . ! i ! a b F n r b a o d n a r a e n c g i k h g e e n n s - Total. b m o o u a p g r e k h n t e t i . n c T ep o t t a a n l c a e c s - . i cies. 1915. | Feb. 22 ! $93,000 893,000 893,000 A4—p r. 5" ' 3,653,000 87,820,000 S10, 8110,000 j 11,593,000 11,593,000 May 3 5,038,000 8,189,000 10, 110,000 ! 13,3-17,000 13,347,000 June 7 5,242,000 4,516,000 10, 192,000 ; 9,960,000 9,960,000 July 3 4,342,000 5,267,000 161,000 ! 9,770,000 9,770,000 Aug. 2 5,350,000 5,407,000 ! ""26," 352,000 I 11,129,000 11,129,000 Sept. 6 6,087,000 6,305,000 I 20, 472,000 i 12,884,000 12,884.000 Oct. 4 9,000,000 4,898,000 I 132, 343,000 i 14,373,000 14,373,000 Nov. 1 , 8_,,4.7.7.,,0_00„, 4,331,000 253, 204,000 13,265,000 13,265,000 Dec.6 12,311,000 | 5,172,000 j 275, 396,000 ! j 18.154,000 18,154,000 1916. Jan. 3.. 15,494,000 7,160,000 i 362,000 822,000 .: 23,838,000 23.838,000 Feb. 7.. 15,681,000 7,876,000 : 336,000 1,456,000 -! 25,349,000 3489,000 25,838,000 Mar. 6.. 17,182,000 8,670,000 408,000 1,781,000 .! 28,041,000 462,000 28,503,000 Apr. 3.. 21,000,000 13,573,000 473,000 3,262,000 .: 38,308; 000 722,000 39,030,000 Mayl.. 24,875,000 15,400,000 585,000 3,430,000 -i 44,290,000 1,477,000 45,767,000 June 5.. 24,680,000 17,029,000 644,000 7,007,000 . 49,360,000 2,208,000 51,568,000 JulyS.. 32,989,000 18,921,000 471,000 11,830,000 -i 64,211,000 3,422,000 67,633,000 Aug. 7.. 39,695.000 19,060,000 738,000 13,940,000 .'. 73,433,000 4,225,000 77,658,000 Sept. 4. 41,413;000 20,356,000 726,000 12,491,000 -i 74,986,000 3,073,000 78,659,000 Oct. 2.. 37,798,000 21,782,000 712,000 9,944,000 .' 70,236,000 2,306,000 72,542,000 Nov. 6.. 37,770,000 29,474,000 1,014,000 12,147,000 .! 80,405,000 2,378,000 82,783,000 Dec. 4.. 47,748,000 33,232,000 1,630,000 16,069,000 .! 98,679,000 4,487,000 103,166,000 I 1917. Jan. 1 j 66,803,000 34,625,000 1,502,000 18,224,000 1121,151,000 4,585,000 i125,739,000 Feb. 5 i 50; 361.000 23,511,000 972,000 13,775,000 $140,000 I 88,759,000 4,041,000 I 92,800,000 Mar. 5 ! 53,288i 000 32,518,000 1,090,000 20,581,000 354.000 1107,837,000 2,535,000 I110,366,000 Apr. 2 1 43,979,000 20,328,000 689,000 16,830,000 200;000 I 82,026,000 1,144,000 83,170,000 May 7 j 49,192,000 19,650,000 236,000 19,177,000 94,000 i 88,349,000 1,679,000 |90,028,000 June 4 : 69,262,000 27,611,000 584,000 21,077,000 239,000 118,773,000 3,022,000 !121,795,000 June 11 ! 81,196,000 32,043,000 946,000 22,604,000 239,000 137,028,000 3,723,000 !140,751,000 June 18 1103,314,000 38,776,000 1,296,000 23,860,000 1,301,000 168,547,000 3,611,000! 172,158; 000 June 25 '113,786,000 45,738,000 2,260,000 31.215,000 3,165,000 196,164,000 4,129,000 200,293,000 Jui y 2 .117,555,000 48,496,000 2.242,000 32,137,000 3,287,000 203,717,000 4,429,000 208,146,000 July 9 1117,991,000 49.260,000 2; 549,000 32,484,000 3.095,000 205,379,000 4,923,000 210,302,000 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

642 FEDERAL RESERVE BULLETIN. AUGUST 1, 1917. Amounts of bills discounted and acceptances and, warrants bought by each Federal Reserve Bank during June, 1917, distributed by maturities. 15-day maturities. 30-day maturities. Banks. Discounts. Total. Discounts, j J^<le£t' I Warrants. Total. Boston 834,571,777 8532,477 , | 835,104,254 86,196,821 i 8324,878 86,521,699 Now York 547,878,469 4,770,481 ' i 552,648,950 1,289,209 i 10,401,261 11,690,530 Philadelphia 38,818, 220,952 : 39,039,795 1,674,570 '•• 164,552 1,839,122 C R l i e c v h e m la o n n d d 25 7 , , 1 0 7 7 4 2 ! ,8 7 6 0 3 6 , 114,500 : • : ! 2 7 5 , , 0 2 7 8 2 9 , , 8 2 6 0 3 6 1, 8 0 9 9 7 0 , , 7 0 5 4 6 3 : j 3,0 1 8 8 9 , , 0 5 1 0 6 0 3 1 , , 9 1 8 0 7 8 , , 2 0 5 5 6 9 C A h tl ic a a n g ta o 18,6 6 5 1 6 7 , ,8 37 6 6 6 1, 2 1 0 65 4 , , 1 0 3 00 6 : ' ! 19, 8 8 2 2 1 1 , , 8 5 6 1 6 2 324, , 145 ! 3 2 5 7 6 4, , 8 8 8 5 1 0 . i. 2,5 6 0 8 9 0 , , 3 9 3 9 5 5 St. Louis 2,324620 32,500 ; 2,357,126 2,234,454 i 38,683 :. 525,100 Minneapolis 4, on;004 540,000 ; 4,551,004 480,417 : S K D a a a n l n l s a F a s r s a n C c i i t . s y " co 9 1 , , 7 4 9 3 6 2 0 9 0. , ,4 3 9 0 3 3 0 4 5 68,000 ! I 9 ', . 5 9 7 2 2 3 8 9 0, , , 9 4 3 3 0 3 5 0 4 2,5 9 2 2 2 0 7 3 0 6 0 9 6 . ; , 0, 0 0 0 0 0 0 0 9 2 0 0 0 8 2 i : \ j i " 1 9i 5 3 6 , , " 3 8 2 3 4 9"| 3, 4 4 2 3 3 3 5 3 6 , , , 3 0 8 4 0 3 6 6 9 Total 091,247,199 i 7,648,046 i 698,895,245 18,128,601 15,738,784 1 ! 33,867,385 Per cent i ! i 78.9 ; ; 3.8 i 60-day maturities. SO-day maturities. Accept- Discounts. Potal. Discounts. | ances. Warrants. Total. j _|__. ...._ Boston $2,082,,.554 8181,345 263,899 S3,365,573 87,134,393 B10,499,966 New York 1,826,,8:98 17,624,726 451,024 I 1,981,822 46,099,873 48,081,695 Philadelphia... 1,640,,4'91 145,354 785,845 ' 589,704 2,885,617 3,475.321 Cleveland 2,058,,8.20 868,845 927,665 960,985 1,681,019 2,642;004 Richmond 1.522,,709 926,826 449,535 2,114,040 157,977 2,272,017 Atlanta i;127,,223 396,758 523,981 587,870 484,660 1,072,530 Chicago 2,7753,,808 6,298,375 052,183 1,357,362 11,302,813 12,660,175 St. Louis 6622,,;850 85,873 708,723 1,071,418 836,078 1,907,496 Minneapolis... 2,1187,,;386 80,000 267,386 1,690,522 12,000 1,702,522 Kansas City... 7763,:,251 1,375,859 139,110 623,925 6,028,114 6,652,039 Dallas....." 452,,7 452,757 399,209 399,209 San Francisco. 2,883,932 1,577,324 461,256 3,089,878 88,987 3,178,865 Total. 19,922,679 29,561,285 49,483,964 17,832,308 76,711,531 I 97,543.839 Per cent 5.6 10. 8 T Over 90-day maturities. Total. Per cent. Banks. co D u is n - ts. I ! ! A a c n c c e e p s. t- r W an a t r s - . Total. I Discounts. A a c n c c e e p s t . - r W an a t r s - . I \ Ti olt al- , j I c o D u i n s t - s. c A e c p - t- Boston $370,789 S370,789 846,216,725 543,882 ;S54,760.607 84.0 16.0 100.0 New York 4,352,167 4,352,167 552,976,458 248,508 1636,224; 966 86.9 13.1 100.0 Philadelphia 25'., 000 26,295 42,724,903 441,475 ...J 46,166,378 92.7 7.3 100.0 Cleveland 514;161 §4,925 521,365 11,184,990 082,041 84,925 1 14,271,956 78.4 21.6 100.0 Richmond 388,516 30,097,727 288,803 ....! 34,386,530 90.1 9.9 100.0 Atlanta 173 173,976 2,831,080 442,268 ....! 4,273,348 66.2 100.0 Chicago 158; 158,367 I 25,160,367 041,205 ....| 44,201,572 56.9 43.1 100.0 St. Louis 37,492 37,492 4,542,803 993,134 ....! 5,535,937 82.1 17. 9 100.0 Minneapolis 1,076, 1,076,822I 9,865,832 682,000 I 10,497,832 94.0 6. 0 100.0 Kansas City 445, 304,785 750,690 ! 11,842,437 7,865,082 : 19,707,519 60.1 39.9 100.0 Dallas ." 751, 751,949 ! 3,769,321 ....| 3,769,321 1 100.0 I 100.0 San Francisco 103, 106,500 '2,'651,'299* ! 11,709,395 I 77.4 i 22.6 100.0 Per ce T n o t tal |3,139,952 5,570,051 4,9 0 2 .9 5 8,714,928 1750,270,739 135,229,697 4,925 |885,50'O 1 5f 0 ,3 0 U 6 U . J 0 1 . 83. 5 ! 16.4 100.0 *! Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

AUGUST 1, 1917. FEDERAL RESERVE BULLETIN. 643 Maturities of discounts, acceptances, and municipal warrants held by the Federal Reserve Banks on Friday, June 29, 1917. fin thousands of dollars; i. e., 000 omitted.] 1 to 15 days. 16 to 30 days. Banks. • : disc B o i u ll n s ted. | ' bought. M wa u r n ra ic n i t p s- al Total. I dis B co il u ls nted. b A a o c n u c c g e e h p s t t . - M wa u r n r i a c n ip ts a . l I \ Total. Boston 11,266 : 2,219 i 13,485 2,477 1,154 3,631 Now York 73,539 : 18,282 • 91,821 : 1,537 17,959 316 ! 19,812 Philadelphia... 19,203 I 2,102 21,305 I 1.813 2,366 i 4,179 Cleveland 5,917 ' 1,418 , 7,340 ! 088 2,091 I 163 2,942 "Richmond 5,535 ; 1,974 I 7,509 1,491 3,035 i 15 4,541 Atlanta 981 ! 639 ; 1,621 j 481 157 i '638 Chicago 12,329 : 3,235 ; 15,564 ! 1,662 5,326 ! 152 ' 7,140 St. Louis 2,360 I 1,437 ! 3,797 ! 1,230 1,099 : 212 : 2,541 Minneapolis 3,774 = 544 4,318 ; 1,062 613 \ 1,675 Kansas City... 2,793 ! 1,184 , 3,977 j '463 1,462 ! 1,976 Dallas .* 1,29? : 134 ' 1J426 ! 504 281 20 : 805 San Francisco. 1,868 ! 3,506 5,374 i 1,833 2,675 i 203 : 4,711 Total. 140,857 36,674 177,537 i 15,241 8,218 I 1,132 i 54,591 Percent 44.2 !. 13.6 31 to 60 days. 61 to 90 days. Banks. I ! disc B o i u ll n s ted. A b a o c n u c c g e e p h s t t - . M wa u r n r i a c n ip ts a . l Total. disc B o i u ll n s ted. Municip t al Total. Boston 2,332 5,744 8,076 2,698 7,294 ! 9,992 New York 1,762 34,606 50 36,418 1.283 31,740 ! 33,023 Philadelphia.. 985 1,611 156 2,752 '328 3,008 I 2 3,338 Cleveland 2,064 5,563 54 7,681 689 2,061 ! 1,023 3,773 Richmond 2,862 701 3,563 1,437 158 i 1,595 Atlanta 1,319 717 2,036 495 337 j 832 Chicago 2,743 12,283 15.026 1,236 8,079 ! 9,315 St. Louis 1,014 2,541 3;555 j 1,044 394 I 1,438 Minneapolis... 2,267 280 2,547 ! 1,581 12 1,593 Kansas City... 1,000 4,294 5,294 ; 640 4,896 ! 5,536 Dallas 723 208 931 i 519 519 San Francisco. 2,768 758 3,526 ! 2,395 92 ! 2,487 Total. 21,839 ! 19,306 | 260 91,405 i 14,345 58,071 1,025 73,441 Percent 22.7 IS. 3 Over 90 days. Total. Percentages. ,, . Total. Banks. co B u di n i s l t l - e s d. b A a o c n u c c g e e p h s t t - . M r w a i u p n a n a t r i l s - c . - Total, j I co B d u i i s n ll - t s ed.b A a o c n u c c g e e p h s t t - . r w a ip n a a t r i s - . i | : A mount.: ; _ , -, co B u d n i i s l l t - s e d. | | j A b a o c n c u c e g e p l s i t t - . i 1 Munic-! i rants, j Boston 18,773 16,411 35,184 53.4 46.7 100.0 New York 1 78,122 102,587 366 181,075 45.1 43.1 56.7 0.2 100.0 Philadelphia... 5 22,334 9,087 158 31,579 7.9 70.7 28.8 .5 100.0 Cleveland 23 28 9,363 11,133 1,268 21,764 I 5,.4 . 43.0 51.1 100.0 Richmond 717 717 12,042 5,868 15 17,925 4.5j 67.2 32.7 100.0 Atlanta 479 479 3,755 1,850 1 5, SOC> 1.4 ! 67.0 33.0 100.0 Chicago 148 148 18,118 28,923 152 47,193 11.7 i 38.4 61.3 .3 100.0 St. Louis 65 65 5,713 5,471 212 11,396 2.8 I 50.1 48.0 1.9 100.0 Minneapolis.... 1,505 1,505 10,189 1,449 11,638 2.9 i 87.6 12.4 100.0 Kansas City.... 675 675 5,570 11,837 ""Si"! 17,458 4.3 ! 31.9 67.8 .3 100.0 Dallas 1,244 1,244 4,282 623 201 4,925 1.2 i 86.9 12.7 .4 100.0 San Francisco., 117 117 8,981 7,031 203 i 16,215 4.0 55.4 43.4 1.2 100.0 ! Total.. 4,961 23 4,984 I 197,242 i 202,270 2,446 j 401,958 I : 49.1 50.3 i .6 100.0 Per cent 1.2! i ! jlOO.O I Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

644 FEDERAL RESERVE BULLETIN. AUGUST 1, 1917. Total investment operations, exclusive of purchases of United States certificates of indebtedness, of each Federal Reserve Bank during the months of June, 1917 and 1916, and the six months ending June 30, 1917 and 1916. Bills bought in open market. Municipal warrants bought. I Bills dis- Federal Eesorve Banks. ! ; ! co m u b n a e t n m e k d b s e . f r or ac B c a ep n t k a e n r c s e ' s.! j ^rade ! Total. City. State. ot A h l e l r. Total. i ! Boston I S46,216,725 88,543,882 I. 543.882 !.... New York 552,976,458 82,794,121 i §454,387 248^08 j !. j Philadelphia I 42,724,903 3,208!,64.7 I 232,828 441,475 ! ! i ' Cleveland 11,184,990 3,078;295 I 3,74.6 082,041 j I $4,925 ! 54,925 Richmond 30,097,727 803 . 288,803 ! ! i ! Atlanta 2,831,080 l',442!268 !.. 442,268! L... Chicago i 25,160,367 18,828!767 ! 212,438 i 041,205 ; !.... I" St. Louis 4,542,803 993!,134 i. 993,134 1 i i • Minneapolis 9,865,832 632!000 632,000 i I ! i Kansas City : 11,842,437 082 . 7,865,082 ! ! I Dallas 3,769,321 San Francisco 9,058,090 806,555 1,844,744 2,651,299 | Total, June, 1917 750,270,739 132,481,554 2,748,143 135,229,697 4,925 4,925 Total, June, 1916 11,660,000 39,640,000 2,685,100 42,325,100 5,300,000 6152,800 25,000 5,477,800 Total, six months ending June, 1917 : 959,381,169 369,741,962 8.794,819 378,536,781 !,364,057 2,040 652,220 15,018,317 Total, six months ending June, 1916 : 62,543,900 121,938,900 5,734,200 127,673,100 52,523,000 2,803,000 175,100 ! 55,501,100 United States bonds and Treasury notes. Total investment operations. Federal Reserve Banks. 2 per cent. 3 per cent. 3 c 1 e n pe t. r 4 per cent. Tr 1 n e - o y a t s e e u a s r . r y Total. J 1 u 91 n 7 e . , June, 1916. J 1 u 9 n 17 e . , J 1 u 91 n 6 e . , ! Per cent, Per cent. Boston.... 854,760,607 §8,457,700 6.2 13.9 New York 5750,000 §750,000 636,974,966 17,298', 800 71.9 28.4 Philadelphia.. 46,166,378 7,329,200 5.2 12.1 Cleveland 89,000 6,000 15,000 14,286,956 4,520,400 1.6 7.4 Richmond 34,386,530 j 3,385,300 3.9 5.6 Atlanta ; §26,700 " 26," 766" 4,300,048 '•2,048,900 .5 3.4 Chicago 44,201,572 i 4,331,800 5.0 7.1 St. Louis 8,000 8,000 5,543,937 j 2,916,800 .6 4.8 Minneapolis... 10,497,832 1,969,340 1.2 3.2 Kansas City... 19,707,519 1,429,600 2.2 2.4 Dallas ." ' "3," 8*66' '"3,"s66' 3,773,121 2,520,700 .4 4.1 San Francisco. 11,709,395 4,576,800 1.3 7.6 Total, June, 1917 38,500 9,000 756,000 803,500 886,308,861 I 100.0 Total, June, 1916 \ $867,500 6434,940 20,000 1,322,440 60,785,340 | 100.0 Total, 6 months ending June, 1917 14,047,200 118,440 38,500 34,250 4,314,000 18,552,390 1,371,288,057 Total, 6 months ending June, 1916 34,488,600 j 3,622,820 4,128,000 50,000 42,289,420 .j 283,007,520 United States securities held by each Federal Reserve Bank on June 30, 1917, distributed by maturities. United Stales bonds with circulation privilege. United States securities without circulation privilege, j 2 C o p f o e n r 1 s 9 c o 3 e l 0 s n . t o 2 P f p a 1 e n 9 r a 3 m c 6- e a 3 n s 8 t . 3 o p f l e o r 1 a 9 c n 1 e 8 n . t 4 o p f l e o r 1 a 9 c n 2 e 5 n . t c o e p 3 f e r e d t a r i i n n n fi c e d d c e s e a s n 3 t b . . e V t t s - c 3 b o 1 p o n 9 e v n 4 r e 6 d r - s c s 4 e o i 7 o n f . n t 3 T p n r 1 e e - o a y r t s e e c u a s e r . r n y t o 3 f c l o e 1 p a n 9 e n t 6 r 1. L o 3 f L i c £ b e o 1 p e 9 n a e r 4 t n r t 7 y . I i j j i Total. I Boston §750 5529,000 $2,194,000 ! 32,723,750 New York ! 50 850,000 S2,006,000 1,255,500 3,538,000 I 6,849,550 Philadelphia $100 549,200 2,54S,000 ! 3,097,300 Cleveland ! 6,400 467,200 *2," 586," 560*§2,378,200 i 414,800 1,871,000 7,724,160 Richmond j 915,100 237,000 1,969,000 3,121,100 Atlanta ! 610,600 21,000 370,000 10,300 1,491,000 §26,700 2,559,600 Chicago 1,862,500 367,300 2,581,000 1,768,000 427,400 2,985,000 8400 9,991,600 St. Louis 100 1,080,000 1,153,300 1,444,000 8,000 3,685,400 Minneapolis 323,050 " 1(3," 260' 1,196, ISO ""266," 250' 79,500 114,800 1,310,000 ""066" 3.276,540 Kansas City 7,155,850 22,240 825,000 838,500 1,781,000 10;625,590 Dallas 2,450,900 281,500 1,233,600 1,430,000 3,800 5,399,800 San Francisco j 2,428,750 "3,"378,"666' 1,500,000 7,306,750 Total 15,784,050 1,412,600 7,493,740 5,177,150 5,833,500 6,526,400 24,094,000 900 38,500 ! 66,361,140 Total United States bonds with circulation privilege, $29,867,840. Total United States securities without circulation privilege, 836,493,300. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

AUGUST 1, 1917. FEDEEAL BESEEVE BULLETIN, 645 RESOURCES AND LIABILITIES OF FEDERAL RESERVE BANKS- Resources and liabilities of each Federal Reserve Bank and of the Federal Reserve System at close of business on Fridays, June 29 to 'July 20, 1917. RESOURCES. [In thousands of dollars;.i. e., 000 omitted.] San | Boston.! Y N o e r w k. | i d P e h lp i h ia ia - . C l l a e n v d e . - m R o ic n h d - . la A n t t - a. c C a h g i o - . Lo S u t. is. M ap i o n l n is e . - K C an it s y a . s Dallas. F ci r s a c n o - . Total. Gold coin and certificates m vault: June 29. 29,952 286,306 30,169 23,938 6,353 7,731 40,801 11,407 14,092 8,419 10,000 15,036 484,264 July 6 31,269 255,643 31,186 34,654 6,443 6,740 42,089 12,077 15', 171 7,534 12,077 15,176 470,359 July 13 , 33,093 253,181 35,870 30,846 6,304 7,299 39,896 5,103 17,702 9,463 13,363 19,372 471,492 July 20 36,166 258,257 39,46* 31,078 6,448 7,398 41,860 4,781 19,052 8,458 13,965 21,194 488,119 Geld settlement fund: June 29 , . 4~7 ,,3 5-7 34,902 31.095 49,229 25,084 5.557 45,652 20,617 15,192 30,582 17.500 23,078 345,S45 July 6 i 14,984 128,794 22;583 38,569 20,503 2', 694 57,662 17,796 10,260 26,218 Hi 019 20,298 371,380 July 13 | 17,602 ]06,390 25,119 58,275 22,764 3,631 68'. 498 20.572 7,937 28,930 7,923 20,712 388,353 July 20 ! 11,165 125,790 15,972 57,409 26,189 7,340 b9'} 916 25; 584 9,747 34,590 10.260 19,859 403,821 Gold with foreign agencies: j Juno 20 ' i 3,675 18,312 3,675 4,725 1,837 1,500 7,350 2.100 2,100 2,500 1,838 2,750 52,362 Julys I 3,675 18,188 3,075 4,725 1,837 1,500 7,350 2,100 2,100 2,625 1,838 2,888 52; 501 July 13 j 3,675 18,188 3,675 4,725 1,837 1,500 7,350 2,100 2,100 2,625 1,838 2,8?S 52,501 July 20 ! 3,675 18,112 3,675 4,725 1,837 1,575 7,350 2,100 2,100 ?.,625 1,838 2; 888 52,500 Gold with Federal Reserve j Agent: | ! June 29 ! 22,460 139,252 33,60ti o4,128 7,372 16,320 62,003 9,4.72 21,576 14,830 16,986 24,388 402,693 July 6 j 22,433 148,002 33.512 30,045 7,735 17,397 62,003 14,345 21,418 14,778 16,904 25,143 413,715 July 13 ! 22,409 : 161,760 33,443 31,008 7,678 17,527 61,690 14,701 21,400 14,727 15,866 26,123 428,338 July 20 ; 22,391 | 161,961 33,377 30,970 7,623 17,966 56,669 14,944 21,382 14,666 I 15,828 26,112 Gold redemption fund: June 29. 500 5,250 450 49 755 272 226 196 208 1,331 143 22 9,402 July G 500 5,250 450 41 750 338 235 311 341 1,333 141 55 9,748 July 13 500 5,250 450 2,973 786 342 235 279 340 1.337 165) 27 12,0«7 July 20 500 5,250 450 2,816 871 347 235 206 339 481 171 2'. 11,691 EjCgal tender notes, silver, etc.: June 29 i 2,520 26,534 1,285 308 645 3,447 3,358 114 1,083 140 39,840 July 6 i 2,617 27,900 448 207 199 652 1,599 3,071 97 276 1,112 136 38,314 July 13 : 3,674 34,248 985 274 216 640 2,302 3,367 I 99 422 1,155 163 47,545 July 20 ; 3,858 36,860 1,296 296 157 718 1,925 3,214 | 91 454 1.275 157 50,301 Total reserves: ! June 29 |1O6,464 510,616 ! 100,280112,677 41,599 32,025 159,479 47,150 I 53,282 57,870 ! 47,55065,414 1,334,406 July 6 i 75,478 583,777 i 91,854 108,244 37,467 29,321 170,938 , '", - " ,' 49,,687 52,764 ,j 43,, 091, 63,6961,356,017 July 13 80,953 579,023 ! 99,542 128,101 39,585 30,939 ,1 79,,971 ; 46,122 49,57857,504 ! 40,313 69,285 1,400 916 July 20 '. \ 77,755 606,230 j 94,232127,294 43,125 35,344 167,955 | 50, 61,274 43,337 I 70,2351,430,321 Bills discounted—members: I June 29 18,773 78,122 ! 22,334 9,363 12,042 3,755 18,118 : 5,713 10,189 5,570 4,282 j 8,981 197,242 J J u u l l y y 6 13 1 1 5 5 , ,8 5 2 8 3 5 3 2 2 1 , , 2 9 1 1 4 8 I ; 18 1 , 2 0 , 3 0 7 55 5 6 , , 6 5 4 8 6 5 1 1 3 1 , ,8 6 6 5 9 0 3 4 , , 4 2 7 1 9 8 1 1 6 9, , 7 2 7 5 6 8 | • 7 6 , , 5 3 8 4 6 5 i 1 9 0 , , 4 6 6 7 0 4 5 8 , , 1 32 6 3 8 : j 3 4 , , 7 7 2 0 4 7 8 8 , , 2 60 7 8 8 1 1 4 2 0 9 , ,8 1 5 6 3 3 July 20 ; 19; 258 33,260 I 11,843 8,924 13,731 5,200 21,679 : 11,441 : 9,787 11,243 i 4,921 10,099 161,386 Bills bought in open market: | j June 29 ! 16,411 102,587 j 9,087 31,133 5,868 1,850 28,923 I5,471 1,449 11,837 I 623 7,031 202,270 July 6 i 17,014 = 101,541 1 9,824 10,478 5,154 1,676 29,997 1 4,757 883 12,183 ' 974 7,183 201,664 July 13 : 16,069 96,668 ; 10,508 9*855 5.636 1,273 29,045 4,060 860 12,151 2,586 6,226 194,937 July 20 : 15,668 100,294 i 12,799 8,762 < 932 1,359 28 856 i 3,572 12,818 3,004 4,800 197,725 United States Government j long-term securities: I I June 29 530 1,306 I 549 5,853 1,152 7,007 -; 2,233 I1,857 8,842 3,970 2,429 ! 36,426 July 6 530 1,305 ! 549 5 853 1,152 699 13,508 j 2,241 1,857 8,842 3,970 2 429 ! 42,935 July 13 530 1,305 ! 549 5,853 1,152 699 14,532 ! 2,2411,857 8,844 3,970 2,429 43,961 July 20 530 1,305 I 549 5,85* 1,152 699 12,803 i 2,274 1,857 8,844 3,970 2,429 ! 42,265 United States Government short-term securities: June 29 2,194 5,294 I 2,548 1,891 1,969 3,015 2,985 1,444 1,420 4,28-1 1,430 5,828 34,302 July 6 2,194 5,550 ! 2,548 2,868 1,969 1,871 3,361 1,444 1,420 1,784 1,430 2,220 28,659 July 13 2,194 6,060 j 2,548 2,968 1,969 1,910 3.556 1,524 1,420 1,784 1,446 2,980 30,359 July 20 2,194 7,760 ; 2,548 2,933 1,969 1,584 3; 724 1,524 2,015 1,784 1,567 3,448 33,050 Municipal warrants: June 29 1,268 15 1 152 212 51 20 203 ! 2,446 July 6 1,263 15 1 152 212 i 51 20 204 i 2,442 July 13 1,263 15 153 212 i 51 20 203 ! 2,441 July 20 1 263 115 153 112 i 51 20 203 i 2,186 Loans on gold coin and bullion: June 29 Due from other Federal Re- T serve Banks—Net: June 29 1,046 1,423 5,212 9,845 2,436 555 3,649 1 11,448 July 6 3,019 1,941 2,576 3,635 879 1,135 U9.505 July 13 4,681 5,198 8,340 5,810 3,082 4,248 4,334 1,855 1 7,005 July 20 5,063 2,092 3,927 612 4,368 5,564 14,112 Uncollected items: June 29 25,915 17,229 11,090 10,558 44,737 13,699 6,794 11,829 6,256 14,477 221,705 July 6 25,897 18 502 16,336 10,720 33,069 15,849 6,784 16,746 6,315 8,070 251,334 July 13 26,718 22,466 14,444 13,512 36,574 16,086 6,533 17,476 12,757 13,095 253,722 July 20 i815 ! 24,065 21,860 10,858 8,941 47,046 13,410 " — 10,664 7,193 16,760 242,967 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

846 FEDERAL RESERVE BULLETIN. 1. 1917 Resources and liabilities of each Federal Reserve Bank and of the Federal Reserve System at dose of business on Fridays, June 9,9 to July 20, 1917—Continued. [In thousands of dollars: i. e., 000 omitted.] RE S OU ROE S—Continued. N.-v d P el h p i h la i - a. C la le n v d e . - m R o ic n h d - . lo A n t t - a. c C a h g i- o. Lo S u t. is. M ap i o n l n is e . - si Dallas. F C S r is a a c n n o - . Total. 5 per cent redemption fund against Federal Reserve Bank notes: June 29 400 100 500 Julv 0 400 100 500 July 13 400 100 500 July20 • 400 100 500 All other resources: June 29 i- - 118 40 368 40 233 799 Julv 6 ........ 113 107 20 GO "" 87" 80 207 851 Julv 13 ]39 100 81 27 95 115 50 173 786 July 20 103 79 108 1,070 30 144 1,011 Total resources: Juno 29 163,301 702,338 164,194 100,400 75,270 57,154 271,614 75,922 74,991 103;, 159 05,019 jlOS, 012 •2,053,394 July 6 .. 129,918 809,833 148,807 155)990 70,010 50,450 274,456 80,008 71,057 981,018 59,891 i 93,545 i 2)033,700 July 13 150,159 768.308 155,725 81,755 61,002 285,926 8L00S 75,285 1101,917 00,072 104,351 I July 20 130,405 807,775 146,194 182*055 78,053 57,102 2S2,216 84,232 74,009 111L476 64,256 113,538 I ^lio',124 LIABILITIES. Capital paid in: June 29 5,112 12,063 5,270 6,2-17 3,436 2,3S9 7,0fi2 3,243 2,469 3,168 2,755 3,962 57,17G JulyO 5,112 12,003 5,270 6,367 3,436 2". 388 7,401 3,205 2,469 3,16S 2, 750 3,902 57,657 July 13 5,112 12,063 5,276 6,365 3,438 2,389 7,408 3,205 2,481 3,16S 2, 750 3,906 57,6Sl July 20 5,112 12,066 5,276 6,365 3,43S 2,3S9 7.408 3,205 2)518 3,168 2,750 3,96S 57,723 Government deposits: June 29 45,694 31,924 40,154 17,254 12,315 5,946 60,02S 9,272 It, 559 13,547 16,274 33,999 300,966 July 6 15,625 2,900 16,077 14,685 5,716 i 267 46,686 5,344 6,631 6,850 4,725 18,64S 143,626 July 13 39,579 60,013 21,584 38,073 17,107 10,261 49,757 8,334 8,232 14,586 10,633 ?2,64S 300,872 July 20 17,987 35,052 6,463 25,559 9, 617 4,220 35,574 6,728 5,354 7,633 6,174 24,270 184,631 Due to members—reserve account: June 29 75,727 442,007 54,209 90,956 33,194 23,332 127,47"? 36,812 29,154 53,419 23,370 43, SOf. 1,033,400 July 6 67,504 522)002 60,582 85,080 79, S49 23,1S5 135,S42 37,859 29,228 52,541 26,882 42,293 1.112,347 July 13 70,521 38.*,«13 63,739 86,213 30,797 23,002 140,172 42.56S 35,784 5S)8S4 29,382 49,932 1,019,672 July 20 73,825 483,009 70,084 9fi, 793 36,455 2% 074 147,444 42)383 37,530 65,984 30,398 55,410 1,154,995 Due to nonraeraber banksclearing account: I July 6 5,000 i 5,000 July 13 0,847 6, S47 July 20 4,705 ! 4,767 Collection items: June 29 12,041 40,553 | 24,597 13,025 0.547 6, fi4015,315 3,142 5,053 !>, 74$ 3,520 4,346 119,527 July 0 14,259 32,730 I 23, S7S 14,575 19,871 5, S24 IS,840 9,837 I 8,482 6,730 3, SS5 5,615 164,588 July 13 14 984 32,244 : 23,538 15,079 12.900 5,700 20,S2S 8,402 i 5,031 7,004 3,4&> 4,354 153,3G3 July 20 13)342 47,408 21,097 10,207 W. 937 5,621 20,029 9,032 1 4,144 7,25S 4,402 5, S07 105,2S4 Due to other Federal Reserve Banks—net: June 29 i 2(5, S94 1,212 July 0 | 1,400 ! 1,860 0,074 2,223 2,72(5 July 13 52,7S6 i...' 843 July 20 10,450 I ], 040 3,505 "4," 463" 1,7S9 Federal Reserve notes in actual j | circulation: i : June 29 ; 24,530 207,172 39,704 32,916 10,784 ! 18, 61,734 17,237 . 23,712 25,343 19,100 72S ; 508,807 July 6 1 25,719 i 213,801 41,068 35,283 17, Ml ! 19, 00,18J 17,579 ' 24,247 25,331 IS', 923 803 ! 527,459 July 13 ! 25,70-1 ! 214,368 41.395 36,176 17,403 OS,061 18,430 j 23,707 25,315 19.025 385 I 532,508 July 20 ! 25,846 ! 213,539 41)410 37,131 17,000 ! 19, OS,249 18,361 2-i,463 25,127 18,743 S93 I 534,226 Federal Reserve Bank notes in " I circulation, net liability: I Juno 29 , 934 934 July 6 1,175 1,175 July 13 X 1 , ,9 1 6 IU 0 I . . 1,960 July 20 2)300 j 2,306 All other liabilities, including foreign Government credits: j June 29 257 i 1,725 i 172 j 2,524 JuiyO 293 | 21,325 : • 126 164 i 21,908 July 13 259 i 1,309 ! 193 no i 1,887 Julv 20 293 ! 1,480 ; 224 1S2 I 2,192 Total liabilities: ! June 29 163,361 762,338 104,194 100,400 75,276 57,154 271,614 75,922 j 74,991 103,159 65,019 10S0,12 ; 20,53,394 July 6 129,918 809,833 !l4S, 8G7 155,990 70,010 50,450 274,450 1,008 71,057 98,018 59,891 I 93,545 ! 20,33,760 July 13 156,159 768,308 il55,725 181,911 81,755 61,002 285,026 81,008 75,285 110,917 60,072 1101,351 j 2,074,790 July 20 136,405 ' 807,775 1146,194 182,055 7S,053 57,102 282,210 84,232 74,009 111,476 64,256 ill3.53S : 21,16,124 1 Overdraft. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

•AUUCSTI, 1917. FEDEEAL BESERVE BULLETIN. 647 FEDERAL RESERVE NOTES. Federal Reserve note account of each Federal Reserve bank at close of business on Fridays, June 29 to July 20, 1917. [In thousands of dollars; i. e., 000 omitted.] New Pliila- C Rich- At- Chi- ! St. Minue- Kansas San I Boston.! York. deiphiaJ land. mond. lanta. cago. i Louis. I apolis. City. : Dallas. Fran- i Total. Cisco. I i Federal Reserve notes received from agent—net: June "20 27,4(30 229,252 4l,90<> I 34,428 7, 19,301 • ; >7,763 17,979 I 24,772 20,140 I 19,529 24,3SS i 550,504 Julv 0 32,433 233,0!i2 42,812 37,045 17,930 20,408 72,2X3 1S,*JO2 I 25,214 i 20,050 \ 19,437 25,143 ! 570,725 JuivlS 32,409 23S,2«io 42,743 3*,008 18,303 20,598 ' 73,090 19,258 25,790 ! 25,700 j 19,197 20,123 ! 579,957 July 20 32,391 238,401 42,077 39.070 18,357 2J,258 , 73, i ^9 20,401 25,778 j 25,705 \ 19,158 I 20,112 583,937 Federal Reserve notes held bv I i bank: June 29 2,930 22,080 2,202 1,512 544 ! 0,029 742 1,000 ' 797 429 | 2,600 i 41,097 JulvC 0,714 19.201 1,744 1,702 1,148 i fi,lU2 1,323 907 j 725 514 2,280 ; 43,266 July 13 0,705 2VS9S 1,348 1,008 I 5,029 819 2,089 ! 451 172 2,738 47,449 July 20 0,545 24,922 1,267 2^8;jy ol j 3,400 ; 5,420 2,040 3,315 j 415 2,219 ! 49,711 Federal Reserve notes in actual I circulation: I June 29 24,530 207,172 39,704 32,910 10,784 18,847 I 01,734 17,237 | 23,712 25,343 19,100 ! 21,728 ! 508,807 JulvO 25,719 213,801 41,00S 35,283 17,144 19,320 • 00,181 17,579 I 24,247 25,331 18,923 22,803 527,459 July 13 25,704 214,3'* 41,395 him 17,403 19,530 i 08,061 18,439 23,707 25,315 19,025 23,385 532,508 July 20 25,840 213,539 41,410 17/;00 19,s:.S ; 08,249 is,301 24,403 25,127 18,743 23,893 534,220 Gold deposited with or to credit of Federal Reserve Agent: June 29 22,400 139,252 33,600 34,42* 7,372 10,320 i 62,003 9,472 I 21,570 14,830 10,980 24,388 402,093 July 6 22,433 148,002 33,512 30,045 7,735 17,397 i 02,003 14,345 21,418 14,778 10,904 25,143 413,715 July 13 22,409 101,700 33,443 31,008 7,078 17,527 ' 01,090 14,701 ! 21,400 11,727 15,800 20,123 428,335 July 20 22,391 101,901 33,377 30,970 7,023 17,900 i 50,009 14,944 I 21,382 14,000 15,828 20,112 423,889 Amount of commercial paper delivered to Federal Reserve Agent: June 29 5,02-.» 90,523 , 14,134 3,078 5,870 8,513 3,190 j 11,528 3,218 153,398 July 0 10,118 85,065 j 0,300 13,735 3,078 10,459 4,559 3,790 11,508 3,304 102,733 July 13 10,11* 77,03d 9,30i» 10,124 3,078 12,197 4,559 4,390 I 11,115 3,459 158,473 July 20 10,118 77,005 ! 9,300 17,474 3,298 17,199 5,459 4,390 j 11,052 3,770 108,233 Federal Reserve note account of each Federal Reserve Agent at close of business on Fridays, June 29 to July 20, 1917. [In thousands of dollars; i. e., 000 omitted.] I Y N o e r w k. d P el h p i h la ia - .l C la le n v d e . - j m R o ic n ji d - . la A n t t - a . i ! c C a h g i o - . Lo S u t. is. M ap i o n l n is e . - i Dallas. San Total. i i FEDERAL RESERVE NOTES. I Received from Comptroller: Jano 29 50,080 42*,44C i 01,3,10 4S.000 31,720 3G,3S0 I 90.70!) 27.310 36,!>K) 42.720 ! 30,920 I 27,800 ! 924,740 July 6 ;>0,0*0 43'), 040 : iMi, y;>0 I 48,000 i 31,720 30,380 1103,100 27.340 30, (HO -V2\ 720 j 30,920 I 28,000 | 944,100 July 13 55,0S0 410,(110 1 <W,i)'i<) ;.)2,0')U 31,720 37,1>() !li)l, ".OH 29, oOO 3.S,»Ji) 42,720 I 30,1)20 29, 000 i 965,460 July 20 4to,500 i 00,9«.)ii i 52,000 32,9S!) 37. IS') 1100,220 29, oCiU 38,610 42,720 ! 30.920 2:\00iJ | 974,900 Returned to Comptroller: June 29 ! 10,720 7.s, ov; 9,41)1 j 5,932 11.114 0.58-1 2,317 i,7Ol 5,978 7,040 9,J30 3,472 155,570 .Inly 0 i 10,747 81,438 9,588 ! 0,015li;260 6,70r 2,317 >, 778 r/, 130 7,224 9,222 3.517 159,949 July 13 81,07-1 9,0."»7 0,052 11,387 0,777 2, (>30 >', S22 I 0,154 7,514 i (.>,262 3,537 I 101,237 J lily 20 i io|7S9 84,079 0,723 0,090 11.533 ••}. 837 2, Ool ;,879 0, i72 9,301 3.518 104,777 ChurgeaMe to Federal Resorvo Agent: June 29 39,9G0 30% 302 HI,;* Hi 42,068 j 20,0'Hi 2i>. 70!) 0-l,3.S3 2.1,039 I 30,0^2 3', 080 27,790 21,3*8 I 7C9.170 Jill v 6 39,933 353, i>:)2 57,312 41,9X5 20, •.!()!] 29;073 K.):i, 783 I 21,502 3<>, 6()i 35.490 27,098 25;143 ! 784', 1M J J u u l i y y l3 20 4 4 4 4 / ; J 8 0 9 9 1 3 30 5 1 S , ;3 8 0 * 0 1 5 5 7 7 , , 2 1 4 7 3 7 - 4 1 5 5 , , 9 9 4 1 8 0 21,447 3-V403 1 1 0 0 1 3 , ,5 S 0 7 1 i ) ) ! I 2 23 3 , . 0 0 2 /8 1 I 3 3 2 2 . , 4 4 S 0 0 8 3.3 ; , 2 14 o 5 j 22 27 77 , 0 ,6 1 0 5588 f) 2 2 0 0 , , 1 1 2 1 3 2 ! i ; 8 .M 10 )4 ,1 ,2 S 2 3 3 In hands of Federal Reserve I Agent: June 20 12.50!) 9,940 3,110 20,020 3,000 5.S00 9,-40 j 8,201 218,066 J J u u l l y v 0 13 1 7 2 , . ." 0 i 0 0 0 l) 120. . 800 1 1 4 4 , , 5 0 i 0 ) 0 0 4 7 ' , 9 9 4 4 0 0 2 2 , , 5 2 3 3 0 0 0 9, , 2 8 1 0 ): 5 ') 2 2s 8 , ,5 l 0 .M 0 ) 2 4 , , t 4 -0 2 - 0 l I 6 5, 2 0 : 9 K 0 ) ' 9 J , . 4 4 - 4 1 0 0 I I S 8 , , 2o 1 i 61 2 2 . 2 1 J 3 , , 2 4 6 2 6 6 July 20 , 12.500 120', 100 14,500 5,940 3; 090 9, OS.C 29,900 3,220 I 6.090 9,440 j 8,461 226,246 Issued to Federal Reserve Bank, 123,420 less amount returned to Fed-' oral Reserve Agpnt for redemption: June 29 • 27,4 ft) 229,252 41,906 31,428 17,49(3 19.391 07,703 17.979 24,772 20,340 19.629 38S 550,504 July 6. I 32,-133 233,002 42,8l2 37,045 17,930 20,408 72,283 18,902 25,214 26,056 19,437 25,143 570,725 July 13 I 32.409 238,260 42,743 3>>, 003 18,103 20,598 73,090 19,2;V* 25,7" " 25,766 19,197 26,123 579,957 July 20 ! 32;391 238,461 42,677 39,970 IS 357 21.25S 73,069 20,401 25^778 i 25,'705 | 19,15S 26,112 583,937 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

648 FEDERAL RESERVE BULLETIN. AUGUST 1,1917. Federal Reserve note account of each Federal Reserve Agent at close of business on Fridays, June 29 to July 20,1917—Con. [In thousands of dollars; i. e., 000 omitted.] Boston Y N o e r w k. d P el h p i l l i 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 - . I L S ou t. is. M ap i o n l n is e . - Dallas.! i ! c F S i r s a a c n n o - . Total. Collateral held as security for \ outstanding notes: | In joint custody of Federal j Reserve Bank agents— i Gold coin and cor till- ; cates on hand— I June 29 • 18,660 128,914 4,220 12,601 2,897 3,365 14,102: 2,370 11,110 198,239 July 8 18,660 137,974 4,220 8,023 3,296 3,365 14,102 I 2,370 11,110 203,120 July 13... 18,660 151,974 4,220 9; 021 3,996 3,365 14,102 j 2; 370 1.1,110 218,118 July 20 18,660 152,414 4,220 8,821 3,296 3,365 14,102 ! 2,370 11,110 218,358 In gold redemption fund- June 29 1,800 10,338 2,146 1,827 318 1,343 533 617 1,224 j 1,400 1,076 23,620 July 6 1,773 10,028 2,052 2,022 235 1,221 533 540 1,066 i 1,348 1,034 953 22,805 July 13 1,749 9,792 2,283 1,987 678 1,151 796 1,048 I 1,297 996 933 23,190 July 20 1,731 9,547 2,217 2,149 623 1,090 739 1,030 . 1,236 1,058 922 22,801 With Federal Reserve . Board— ! June 29 ! 2,000 27,240 20,000 7,000 12,080 61,470 5,490 6,250 j 11,060 4,800 23,390 180,780 July6 2,000 27,240 20,000 7,500 12,880 61,470 10,440 6,250 : 11,060 4,760 24,190 187,790 July 13 2,000 26,940 20,000 7,000 13,080 61,210 10,540 6,250 i 11,060 3,760 25,190 187,030 July 20 2,000 26,940 20,000 7,000 13,580 56,210 10,840 6,250 i 11,060 3,660 25,190 182,730 By the Federal Reserve agent— i Commercial paper re- ! quired, minimum1— Juno 29 5,000 90,000 8,300 10,178 3,071 5,760 8,507 3,196 ! 11,310 2,543 147,865 July 6 10,000 §5,000 9,300 7,000 10,195 3,071 ! 10,280 4,557 3,796 !11,278 2,533 157,010 July 13 10,000 76,500 9,300 7,000 10,-125 3,071 i 12,000 4,557 4,396 " 11,039 3,331 151,619 July 20 10,000 76.500 9,300 9,000 10,734 3,292 I 17,000 5,457 4,396 11,039 3,330 160.048 Total- June 29 | 27,460 229,252 41,906 3-1,428 17,496 19,391 j 67,763 17,979 24,772! 26,140 19,529 24,388 i 550,504 July 6 1 32,-133 233,002 I 42,812 37,045 17,930 20,468 ' 72,283 18,902 25,214 i26,056 19,437 25,143 : 570,725 July 13 1 32,409 238,266 I 42,743 38,008 1 18,103 20,598 i 73,600 19,258 25,796 I25,766 19,197 26,123 : 579,957 July 20 ! 32,391 238,461 ! 42,677 39,970 18,357 21,258 I 73,669 20.401 25,778 !25,705 19,158 26,112 583,937 1 For actual amounts see item "Commercial paper delivered to Federal Reserve Agent" on page 647. Amounts of Federal Reserve notes received from and returned to other Federal Reserve Banks for redemption or credit during the period Jan. 1 to June 30, 1917. Boston. New York. Philadelphia. Cleveland. Richmond. Atlanta. Chicago. Re- Re- Re- Re- Re- | Re- Re- Re- Re- Re- Re- Re- Re- Received. turned. ceived. turned. ceived, i turned. ceived. turned. ceived, jturned. ceived. turned, ceived. turned. Boston 82,569,300 §624,600 $173,100' 899,000 8123,100312,415 $103,100:816,000 876,300 .128,150 832,300 865,500 New York §624,600 $2.,575,300 1,352,300:3,550,000 349,195297, f" ,482,410,474,7501,312,1001 503,70011,51,5001,144,000 Philadelphia 99,000 173,100 3,166,000 1,352, 156,000 52,495 301,005:154,000 124, OOO! 60,250 48,000 88,500 Cleveland 12.415 123,100 306,550i 349, 52,495! 156,000 35,600.1 39,500 26,680| 50,350 5ti, 540 252,500 Richmond 13;000 103,100 480, •50,1,483, 152,000| 301,000 39,500 35,600 ! 174,000: 527,500 10,910! 12S.000 Atlanta 28,150 76,300 504,100|l,312, 60,250 124,000 48,850 28,ISO 527,500jl62,500 47,6501 327,'000 Chicago 65,500 32,300 1,114, 151, 83,500 48,000 224,500 56,540 114,000! 10,910 289,000 46,650 St. Louis 13,900 27,700 3<>6, 243, 24,000 34,000 47,350 55,020 47,950' 15,000 448,195 262,550 LOO, 900 440,000 Minneapolis 4,000 50,000 108, 207, 5,000 41,000 19,500 28,530 7,500j 9,500 9,500 43,100 54,0001,476,000 Kansas City 4,065 42,100 52, 278, 4,930 44,000 10,800 24,240 10,790! 1-1,250 34,900 114,550 13,9501',088,500 Dallas 0.095 43,500 253, 342, 14,150 44,000 11,240 18,410 21,980| 20,500 359,030 479,300 32,035 441,000 San Francisco 9; 045 47,200 145, 776, 9,540 52,000 15,690 15,340 11,256| 6,000 24,705 34,750 34,840 256,000 Total 879,770 3,293,700 9,097,045J7.122,100 1,936,585 4,493,000 1,045,725623,8202,663,090J922,910 2,878,410;2,150,850 583,225 5,707,000 I' St. Louis. Minneapolis. Kansas City. Dallas. San Francisco. Total. Re- Re- Re- ! Re- Re- Re- Re Re- Re- Re- Re- Received. turned. ceived. Iturned. ceived, jturned ceived. !' turned, j ceived. turned. ceived. turned. ! I 1 i Boston I S26,500l 813,900! 850,000 85,000 842,10a1 84,065 843,500! S6,095! 43,000 ll,380i«3, 8886,105 New York j 2~4"3 ) 600" 366,4501 207, S001119,500 278,900: 52,950! 357,100. 220,670 776,600 145,275| 7,136,105 9,449,645 Philadelphia j 34,000 21,000! 41,000, 5,000 44,000, 4,950! 4-1,000! 12,450; 52,000 9,540, 4,109,005 1,936,585 Cleveland i 57,020 47,35()j 28,530 21,000| 24,24()| 10,800, 18,4101 12,240 14,595 15 M '633,075 1,078,030 Richmond I 15,000 47,950! 9,500i 7,500j 14,250 10,790i 20,500: 21,980! 6,000 11,255! 935,410; 2,677,775 A't l'an ta. ' 262,550 448,200! 43,1001 14,500] 112,300: 34,900i 489,200! 363,030! 33,695 24,705! 2,157,345!2,915,415 Chicago.. 440,000 100,90011,476,000| 54,0()0jl,088,500' 13,950! 397,000: 32,635! 224,000 34,840! 5,551,000' 582,225 St. Louis - 144,300| 19,5001.,216,8£0!109,050j 951,250' 244,970! 49,500 23,380: 3,410,645 1,474,770 Minneapolis j 19,500 j 144,300 29,500! 36,200i 116,000 127,445i 476,500!2,231,425 Kansas City ! 109,050H,216,850 67,550103,500 177,750: 417,7201 26,400 152,9201 513,155!3,497,530 Dallas....." 244,970 951,250 36,200 29,500 " in," 726; i??," 756I. 43,010 104,965! 1,440,500j 2,652,275 San Francisco 23,380 49,500 127,445126,500 152,920; 26,400! 104,965; 46,510!. 659,060!1,436,800 Total [1,475,570 3,410,650 2,231,425 505,5003,495,280:513,155,2,633,1751,414,500jl,384,800 661,395 30,304,100|30,818,580 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

AUGUST 1,1917. FEDEEAL EESEBVE BULLETIN". 649 EARNINGS ON INVESTMENTS OF FEDERAL RESERVE BANKS. Average amounts of earning assets held by each Federal Reserve Bank during June, 1917, earnings from each class of earning assets, and annual rates of earnings on the basis of June, 1917, returns. | Average balances for the month of the several classes of earning assets. Banks. Bills dis- Bills bought ! United Municipal m co e u m n b te e d rs , . m in a o r p k e e n t, i j se S cu ta ri t t e i s es. warrants. Total. Boston ,$13,281,302 $13,457,723 $5,623,750 | $21,163 $32,383,938 New York 74,542,408 : 72,234,321 24,695,883 ; 1,123,409 172,596,021 Philadelpphia ! 12,394,010 ! 10,405,493 6,363,967 ; 377,968 29,541,438 Cleveland 5,244,560 10,986,571 10,994,860 1,554,346 28,780,337 A R t ic la h n m ta ond •I 1 3 0 , , 4 2 6 0 0 7 , ,9 1 4 7 4 5 5 1 , , 4 9 9 9 1 0 , ,2 8 3 7 6 5 4 5 , , 8 0 3 5 2 4 , , 0 4 4 3 0 4 i 2 1 0 5 , , 1 0 6 0 7 0 2 10 0 , , 3 7 0 6 2 9 , , 6 2 1 5 8 3 Chicago 7,679,265 23,749,096 15,242,467 | 634,985 47,305,813 St. Louis 4,086,944 6,144,134 ! 6,011,000 366,914 16,608,992 Minneapolis 6,704,900 1,671,800 ! 5,121,000 ! 25,300 13,523,000 Kansas City... 6,140,165 8,660,817 | 12,961,723 ! 108,377 27,871,082 Dallas 3,196,400 739,379 ! 7,262,667 j 73,308 11,271,754 San Francisco.. 4,295,652 8,823,551 | 7,872,395 ; 345,054 21,336,652 Total 151,233,725 164,354,996 I 112,036,186: 4,665,991 432,290,898 Earnings from— Calculated annual rates of earnings from— Banks. Bills dis- j Bills United Munici- Bills dis-i j bou B g i h ll t s in United Municim co e u m n b te e d rs , . j ' se S cu ta ri t t e i s es. p r a a l n w ts a . r- Total. m co e u m n b t e ed rs , .I I m ° a P r e k n et. se S cu ta ri t t e ie s s, p r a a l n w ts a . r- Total. J_ Per cent. Per cent. Per cent. Per cent. Per cent. Boston $39,934 $35,853 $11,321 S50 S87,158 3.66 3.24 2.45 3.75 3.27 New York 187,133 191,524 47,499 2,850 429,006 3.05 3.22 2.34 3.09 3.02 Philadelphia i 36,112 26,927 12,862 1,033 76,934 3.54 3.14 2.45 3.32 3.16 Cleveland 16,118 28,268 22,653 4,585 71,624 3.74 3.13 2.50 3.58 3.03 Richmond ! 32,566 13,798 10,097 44 56,505 3.88 3.06 2.43 3.57 3.31 Atlanta • 11,714 5,275 10,158 68 27,215 4.12 3.22 2.56 4.11 3.21 Chicago I 23,282 60,875 30,252 1,452 115,861 3.69 3.11 2.41 2.78 2.98 St. Louis ! 13,685 15,716 12,195 1,014 42,610 4.07 3.11 2.47 3.36 3.12 Minneapolis j 22,302 4,380 10,141 54 36,877 4.05 3.19 2.41 2.60 3.32 Kansas City ! 20,584 I 22,435 24,131 284 67,434 4.08 3.15 2.26 3.18 2.94 Dallas : 15,208 | 1,959 15,102 j 214 32,483 5.70 3.18 2.50 3.51 3.45 San Francisco J 15,233 j 20,426 13,797 ! 825 50,281 4.18 2.72 2.06 2.82 2.78 Total j 433,871 j 427,436 | 220,208 12,473 ! i 3.49 3.16 2.39 3.25 3.08 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

650 FEDERAL RESERVE BULLETIN, AUGUST 1, 1917, GOLD IMPORTS AND EXPORTS. Gold imports and exports into and from the United States. [In thousands of dollars—i. e., 000's omitted.] Week ending— iTotal cor- Total '• respondsince Jan. in-/ period 1 Jane 22, I .Tune 29, . Julv 6, i Tnlv 13.1, 1917. ' during : 1017. ' ! 1917. : 1017 ! 1017. ' 9 IMPORTS. Ore and base bullion ' 352 8,139 : 6,041 United States Mint or assay office bars : 7 , 33 . 2.268 Bullion, refined * = 60,807 j 307,419 135,064 United States coin ' S j 52,886 . 1,086 Foreign coin : 12,866 ! 90,092 | 72,878 Total. 74,040 ! 518,560 I 220,037 EXPORTS. ; j Domestic: Ore and base bullion 100 j 180 United States Mint or assay o.fii cc bars : 1,200 :. 25,102 : 7,150 Bullion, refined ." , 1)328 ! 14,014 : 4,043 Coin | 9,520 j 174,917 ! 30,514 Total * j 12,054 I 23,382 215,042 i 51,805 Foreign: ! ! Bullion, refined ! i. 31 ! 1,443 Coin i 5". 58 : 5,288 j 10,578 Total i 53 | ; 58 ; 5,310 i 21,021 Total exports ! 12,107 . 237-382~j isTioi"" 12,860 ~22O^m~\ 727826 Excess of gold imports over exports since Jan. 1, 1017, 8298,208. Excess of gold imports over exports since Aug. 1, 1014. $1,106,070. DISCOUNT RATES. Discount rates of each Federal Reserve Bank in effect July 81, 191? Maturities. Discounts. Trade acceptances, j Commodity paper ; . W da i y th s i , n i n 1 - 5 Secured byy U.S. | A t ^f m w a it t h u i r n i n 0 g 0 . chiding : ICtoCO 61 to 90 certificates of in- and livo- To 60 61 to 90 days. I member ! days, in- days, in- debtedness or stock days, in- days, in-; ' banks' clusive. I elusive. Liberty Loan paper clusive. elusive. collateral Bonds. " Within over 00 ; notes. 00 days. days. Boston ' 3-?. 5 4 ! New York1 ! 3 3* i Philadelphia 3\ 3i! 3! Cleveland 3\ i l\ 4 ! 4 Richmond 3., 4 sli 3£ I Atlanta 3T. 4 5" ill Chicago '' >3Jt 4 5 St. Louis sl 4 3} 5 f M D K a a in l n l n a s e a s a s p C o i l t i y s • | 34 01. 4 4 . ' 1 5 5 5 3 4 i San Francisco 3^ 4 5J 31 NOTE.—Rate for bankers' acceptances, 2\ to 4 per cent. 1 Rate of 2 to 4 per cent on member banks' 1-day collateral notes in connection with the loan operations of the Government. 2 3 per cent for member banks' collateral notes if secured by United States certificates of indebtedness. 3 '6 per cent for member banks' collateral notes if secured by United States bonds, notes, or certificates of indebtedness. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

INDEX. Pago. | Acceptances, distribution of, by classes, maturi- j Harding, Hon. W. P. G., article by, entitled "The ties, etc 641 | Federal Reserve System and the War,'' reprinted Attorney General, opinion by, on income tax on j from the Official Bulletin 588-591 dividends made payable in liberty bonds 601 j Informal rulings of the board: Branch banks: Computation of reserves 614 Establishment of, at Spokane, Wash., and Loans to directors 614 Omaha, Nebr 585-588 Charges for handling accounts of depositors 614 Form of proposed by-laws 586 Bonds of Federal Reserve Agents 615 Business conditions throughout the Federal Re- Use of the word "Federal" 615 serve districts 620-633 Potatoes as security 614 Shipments of currency to cover reserves 615 By-laws of branch banks, proposed form of 586 Jones, Breckinridge, article by, on State bank Canadian short-term credit, statement by Secretary membership 596-598 of the Treasury regarding 603 Liberty Loan: Charters granted to national banks during month.. 605 Extracts from Official Bulletin regarding 599-601 Charts: Income tax on dividends made payable in lib- Federal Reserve notes issued and cover held by erty bonds, opinion of Attorney General agents 610 regarding 601 Clearing operations, 1914-1917 613 Statement by Secretary of the Treasury regard- Clearing operations since July, 1914 634 ing exchange of liberty bonds and interim Chart showing 635 receipts 600 Clearing and collection system, operation of 613 Law department: Commercial failures reported 604 Paper based on live stock 616 Directors named for branch banks at Spokane and Deposits by nonmember banks in Federal Omaha 586 Reserve Banks 617 Discount operations of the Federal Reserve Banks. 636-644 Loans on improved farm lands 618 Discount rates in effect 650 Military service, exemption of employees from 591 Dividends payable in liberty bonds, income tax on, j Official Bulletin, article by Gov. Harding, enopinion by Attorney General 601 I titled "The Federal Reserve System and the Drafts, interbank 591 j War," published in 588-591 Earnings and expenses of Federal Preserve Banks.605-609 ! Press statements: Employees of Federal Keserve Banks, exemption of, j Canadian short-time credit, statement by Secrefrom military service 591 j tary of the Treasury 603 Export licenses in the foreign trade 582-585 ! Comptroller's call for reports of condition, Federal Keserve Agents' fund, transactions under.. 612 \ changes in 604 Federal Reserve Banks: i Increase and decrease in number and capital of Earnings and expenses of 605-609 j national banks 603 Investments of, earnings on 649 jReserves of national banks, computation of, letter Resources and liabilities of 645-646 ! by Comptroller of the Currency 602 Federal Reserve notes: ; Resources and liabilities of Federal Reserve Accounts of Federal Reserve Banks and agents. 647 j Banks 645-646 Amounts received from and returned to Federal Review of the month 577-582 Reserve Banks for redemption 648 j State banks: Amount issued during 1917 and cover held by : Admitted to system during month 603 Federal Reserve Agents 610 | Digest of procedure in connection with applica- Chart showing 610 tions for membership 592-594 Fiduciary powers granted to national banks 604 Idaho banking department, circular of, regard- Gold imports and exports 650 ing State bank membership 599 Gold settlement fund: List of State banks now in system 595 Audit of 611 "Reasons why one State institution entered Summary of transactions during month 612 system," by Breckinridge Jones 596-598 o Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis