Federal Reserve Bulletin, 1917-09

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

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

SUBSCRIPTION PRICE OF BULLETIN. The Federal Reserve Bulletin is distributed without charge to member banks of the system and to the officers and directors of Federal Reserve Banks. In sending the Bulletin to others the Board feels that a subscription should be required. It has accordingly fixed a subscription price of $2 per annum. Single copies will be sold at 20 cents. Foreign postage should be added when it will be required. Remittances should be made to the Federal Reserve Board. Member banks desiring to have the Bulletin supplied to their 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. in Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

TABLE OF CONTENTS. Review of the month 651 Acceptance of drafts and bills up to 100 per cent : ; 658 Loans to cattle raisers 659 Governor and vice governor of Federal Reserve Board redesignated for ensuing year 659 State banks admitted during the month 659 Cooperation of State banks in New York with respect to control of gold 659 Development of the collection system , 660 New issues of Treasury certificates of indebtedness 663 Growth of the acceptance business 664 Condition of national banks as shown on June 20 665 Act permitting State institutions of Pennsylvania to become members of the system 666 National-bank notes and Federal Reserve notes issued, redeemed, etc., during the year 667 Why a southern State institution has entered the Federal Reserve System 667 Description and population of Federal Reserve districts 668 Export licenses in the foreign trade 672 Commercial failures reported during the month 677 Fiduciary powers granted to national banks 678 New national bank charters granted 678 Gold settlement fund 678 Operation of the check clearing and collection system 680 Comparative statement of leading banks of issue 681 Course of dollar and sterling exchange 683 Charts showing 688 Informal rulings of the Federal Reserve Board 690 Law department 692 Business conditions throughout the Federal Reserve districts 698 Discount operations of the Federal Reserve Banks 715 Acceptances 720 Resources and liabilities of Federal Reserve Banks 722 Federal Reserve note accounts of Federal Reserve Banks and Agents 725 Earnings on.investments of Federal Reserve Banks 727 Gold imports and exports 728 Discount rates in effect 728 IV Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FEDERAL RESERVE BULLETIN VOL. 3 SEPTEMBER 1, 1917. No. 9 REVIEW OF THE MONTH. Practically every banking development is, therefore, directly affected by, and condi- Completion of arrangements for final paytioned upon, the progress of public finance. ments on the first Liberty Loan and resump- There has been a material increase in the tion of sale by the Treasury of United States estimate of Government revecertificates in anticipation of the next Gov- G o v e r nment • , ,-, £ ernment loan, have been the chief features revenue and loans. nue requirements for the comof the banking situation during the month of ing year, a fact which has a August. Adjustments necessitated by reserve direct and important bearing upon the probtransfers from member banks to Federal lie- able operations of the banks in connection with serve Banks, with the consequent shifting of prospective security issues. The time and confunds, have been completed. The banks of the ditions of the next issue of bonds have not yet country are now, therefore, definitely upon the been announced, but a continuation of the new reserve basis established by the act of method of borrowing pursued during the past June 21, 1917. Federal Reserve Banks have spring has been undertaken through the issue of certificates of indebtedness, payable during continued the policy of maintaining their re- November next, whose proceeds are to be resources in as strong and liquid a condition as tained on deposit for a short time with the possible, showing on August 24 a percentage of subscribing banks under specified conditions, reserve against deposits of 80.6 per cent, and and eventually may be tendered in payment against notes of 86.5 per cent. There has been upon allotment of the Government bonds of a continuance of the movement of State banks the next issue. It will be recalled that during into the Federal Reserve System, while by May and June there were thus issued in all opening clearing accounts with the Federal $600,000,000 in certificates, nearly all of which Reserve Banks and sending in gold and gold were turned in as payment of the installments certificates nonmember banks in various parts due on subscriptions to the Liberty Loan. of the country have been cooperating actively The Treasury Department on August 1 with Federal Reserve Banks in consolidating offered to banks a new issue of $300,000,000 of the gold resources of the country. Due to these Treasury certificates of indebtedness bearing and other contributing factors, the Federal Re- 3\ per cent interest. A like issue, amounting serve System finds itself at the opening of the to $250,000,000, was offered on August 20, autumn in an unprecedentedly strong position, making a total of $550,000,000 for the month. its total holdings of cash on August 24 being As in the case of the certificate issues which $1,424,769,000. preceded the Liberty Loan of last June, these Government borrowing and Government offerings were absorbed by the banks of the financial operations in general continue, as country and the proceeds of the sales have been during the past three months, to be the conpaid into the Federal Reserve Banks without trolling factors in the banking situation, furperceptible effect upon market conditions. In nishing, as they do, the most extensive and this case, as in that of the first Liberty Loan, the important range of transactions in which the sale of certificates at stated intervals enables financial community is at present engaged. the Treasury Department to bring about a 651 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

652 FEDERAL RESERVE BULLETIN. SEPTEMBER 1, 1917. wide distribution of the certificates and to draw use the certificates as sole collateral for deposits. gradually upon the resources of the country as Such deposits will be left as long as the requirethey become available. The purchase of the ments of the Government permit, and whencertificates, payable as they are at Federal Re- ever practicable five days7 notice will be given serve Banks, moreover, provides the purchasing before withdrawal. It is expected that cerinstitutions with exchange sufficient to cover tificates of indebtedness will be issued from remittances for subscriptions which may later time to time somewhat in advance of the immebe made by their clients to Liberty Loan bonds. diate requirements of the United States. As in the past, provision is made for maintain- The success attained in connection with the ing the distribution of the country's cash by former offerings of certificates has been reretaining the proceeds of the subscriptions to peated with the two August issues, the first the certificates in the hands of subscribing having been oversubscribed $61,525,000, while banks up to the moment when it becomes neces- the second was oversubscribed to the extent of sary actually to transfer them to the Govern- $58,000,000. No new policy has been adopted ment for its use. The prompt disbursement of by the Federal Reserve Board with respect to the funds so withdrawn by the Government, the accommodation of member and nonmemor their immediate redeposit with other banks ber banks which participate in the certificate for account of allied governments, guards operations, the rates established by the Federal against any disturbance that might otherwise Reserve Banks during the first Liberty Loan be produced by the shifting of these large being still in effect, while the Board, as was anamounts. nounced in the August Bulletin, has extended The Secretary of the Treasury has prescribed the ruling with respect to the rediscounting of the method of subscription to notes made by nonmember banks. The ma- Method of is- j tificates in two an- chinery for facilitating the sale, distribution, tie new cer sue. nouncements given to the pub- and carrying of the new issue, therefore, conlic on July 31 and August 19, respectively. tinues practically in effect upon the same basis In the announcement of August 19 he says that as during the original loan operations. the proceeds of these certificates will be de- In addition to the advances made by the posited with incorporated banks and trust United States Government to companies as nearly as may be in proportion f oS financing/ allied nations> there has been a to the subscriptions for certificates of indebt- resumption of direct appeals to edness of this issue made by and through them, our investment market by the foreign allied respectively, provided that such subscribing countries. The Government of Canada, in a banks and trust companies make application statement republished in the Bulletin for for such deposits and qualify therefor, all sub- August, has already announced, with the apstantially in accordance with the procedure laid proval of the Treasury Department, the issue down in connection with the deposit of the pro- of a short-term credit of $100,000,000, and on ceeds of Liberty bonds, and upon the same August 22 the firm of J. P. Morgan & Co., on terms and conditions. The banks have, how- behalf of the British Government, made known ever, been informed that the certificates them- their intention of converting $150,000,000 of selves or interim certificates will be acceptable maturing British obligations into short-time as collateral for any part or all of such deposits. British treasury bills. There has been some Banks and trust companies making subscrip- misunderstanding with reference to the nature tions for their own account or for account of of this operation and the relation of the Federal customers who are willing to authorize them to Reserve Board to it. In a statement issued on rehypothecate their certificates will probably August 23, the Secretary of the Treasury states Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

SEPTEMBER 1,1917. FEDERAL RESERVE BULLETIN. 653 the facts in the case, and the position of the largely redeposited with qualifying member Board with reference to the matter, as follows: and nonmember banks, thus for the time beingraising the reserve percentages of these banks, "Certain American banks and bankers have held for some time obligations of the British either through increase of cash or through Government. The Treasury Department was credits with the Federal Reserve Bank where asked a short time ago whether or not there they count as reserve of the depositing memwould be objection on the part of the Treasury bers, since depositing banks are not required to the conversion of $150,000,000 of these oblito keep reserve against these Government gations into short-time British treasury bills. I stated that I saw no objection to such con- deposits. The New York banks have thus version from the standpoint of our own Govern- shown relatively small losses in reserve during ment's financing. the past five weeks. "I regret that the impression is created in The statement of condition of national certain publications that this is a reversal of banks issued by the Comptroller of the Curthe position taken by the Federal .Reserve Board in respect to British treasury bills in rency on August 1, and representing the November last. It is neither a reversal of that position of the banks as of June 20, a sumposition, nor is it inconsistent therewith. It mary of which is published elsewhere in this is merely a conversion of a part of existing issue, is the last statement under the old reobligations into another form. The conditions quirements, the legislation of June 21 having now existing are quite different from those which prevailed in November last. The pres- superseded them. According to the Compent transaction creates no new obligations in troller's statement, the total reserve holdings our markets and is designed merely to facilitate of all kinds reported by member banks were the payment of those already existing. $2,406,357,000, including in this figure, how- "1 may also state that the views and attitude ever, $669,898,000 balances with approved reof the Federal Reserve Board are in complete harmony with the action of the Treasury serve agents, of which only $181,234,000 could, Department and that it gave me pleasure, under the provisions of the old law, be counted while the matter was under consideration, to as reserve. Omitting from consideration the discuss it with members of the Board." balances with reserve agents, the excess cash Clearing House reports received from principal reserves aggregated only $189,523,000. Under eastern cities for the five weeks the new system after the transfer of reserves these bank balances will no longer figure as f endinS Au§ust 18 indicate t0 some extent the effect of the reserves. The amount carried in Federal Government's loan operations on the position Reserve Banks (included in the foregoing of the banks. These operations have caused statement of total reserve) was $862,170,000. withdrawals on a large scale from New York Between June 22 and August 17 the member in favor of banks in the interior. Such with- banks' reserve balances with the Federal drawals are followed by transfers back to Reserve Banks increased from $806,209,000 New York on Government account of funds to $1,130,817,000, largely through transfers subscribed by these banks. Advances are then of reserves. There has thus been an increase made on Treasury account to the New York in the balances carried by member banks with representatives of the foreign allied Govern- Federal Reserve Banks between June 22 and ments, and the latter thereupon deposit the August 17 of $268,647,000, which represents larger part of these advances with the New practically the net result of the operation. York banks, where they again alter the reserve There is no way by which either member position. These movements of funds from banks' demand deposits or their present cash and to New York materially affect the holdings holdings can be more than estimated. For of the New York banks from week to week. those New York member banks which are also In the same manner funds paid on account of members of the Clearing House Association, Government loans by the local banks are average net demand deposits increased from Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

654 FEDEKAL RESERVE BULLETIN. SEPTEMBER 1,1917. $2,262,969,000 for the week ending June 22, Average excess reserves of the Boston to $2,345,180,000 for the week ending August Clearing House banks, as measured by the 17. Their average cash holdings show the ratio of cash in vault and reserve balances following changes: with the Federal Reserve Banks to net deposits, rose from $16,684,000 on July 21 (as against $47,646,000 reported 3 months previous, when Week endingbalances with approved reserve agents counted June 22. Aug. 17. as reserve) to $17,291,000 on July 28, but reached the low level of $14,896,000 on August Gold 8118,615,000 $41,724,000 4, when the New York banks reported the Legal tenders 26,240,000 16,516,000 Silver 32,134,000 25,331,000 largest gain. For the week ending August 18 Bank notes and Federal Reserve notes 8,117,000 7,543,000 these reserve stood at $16,720,000, or slightly 185,106,000 91,114,000 above the level shown for the initial week. Percentages, representing the ratio of net For the Philadelphia Clearing House banks demand deposits, compared and trust companies a practically continuous ^Reserve situa- ^^ lt (^1^ amounts due decline of excess reserves from $29,635,000 for vau from Federal Reserve Banks, the week ending July 21 to $23,272,000 for the and nonmember banks' balances with legal week ending August 18 is noted. As in the depositaries, show a fluctuation of nearly 2 case of the Boston banks, excess reserves of the per cent, falling from 20.7 per cent on July Philadelphia banks are obtained by deducting 21 to 18.7 per cent on August 18, with a maxi- required reserves against net deposits from mum of 21.2 per cent on August 4. These balances with the Federal Reserve Banks comchanges follow heavy transfers of funds on bined with vault cash. Government account from the interior to New Notwithstanding large payments due from York and the payment to the allied Govern- the banks on August 15 on acments of large amounts which were immedi- count of the Liberty Loan-the ately redeposited with New York Clearing liquidation of Federal Reserve House banks. Bank investments, mainly of bills, noted last Excess reserves of these banks (without month, continued unchecked, the total earning counting the cash in the vaults of member assets on August 24 being 72 millions less than banks) rose from $144,046,000 on July 21 toon July 20. Liquidation was most pronounced $168,736,000 on August 4, and stood at at the New York and Chicago banks, $76,456,000 on August 18. Computations of these two banks reporting net liquidation of the New York State Banking Department bills in excess of 86.5 millions for the five weeks made upon a somewhat different basis, show under review. At other cities, viz, Philadeleven smaller changes in the reserve condition phia, Cleveland, and Minneapolis, the strain of the banks in Greater New York under its occasioned by the required payments on acjurisdiction. The State banks7 percentages count of the Liberty Loan produced substantial varied between 25.6 per cent for the week end- increases in discount activities, resulting in ing July 21 and 26.5 per cent for the week im- larger bill holdings on August 24 than on July mediately following, and 23.7 per cent for the 20. The greatest decrease took place in the week ending August 18. The reserve percent- holdings of collateral notes, the August figures, age for the trust companies in Greater New $36,511,000, being $42,284,000 less than for York rose from 21.1 per cent for the week end- July. Collateral notes secured by Liberty ing July 21 to 24.4 per cent for the week fol- bonds or United States certificates of indebtedlowing and then gradually declined to 23.2 per ness show a decrease from $25,359,000 to cent for the week ending August 18. $8,362,000. Acceptances on hand decreased Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

SEPTEMBER 1,1917. FEDERAL RESERVE BULLETIN. 655 from nearly 200 millions to about 150 millions gold during the period was $55,012,000, gold on August 10, since when a small increase to imports amounting to $18,248,000 and gold 159.6 millions has taken place. It should be exports to $73,260,000. noted, however, that following the general The net increase in the country's stock of strengthening of commercial paper rates in the gold through net imports since August, 1914, New York market the local Federal Reserve appears from the following exhibit: Bank on August 17 raised its acceptance rate from 3 to 3J per cent. There has been no ap- Gold imports and exports into and from, the United States from Aug. 1, 1914, to Aug. 17, 1917. preciable change in the aggregate holdings of United States securities, the Federal Reserve [000 omitted.] Banks having increased their bond holdings by Excess of a small amount of Liberty bonds held tempo- imports j Imports. over rarily pending allotment to ultimate purchasers exports. and, on the other hand, having disposed of nearly all United States certificates of indebt- Aug. 1 to Dec. 31,1914 i S23,253 $104,972 1381,719 Jan. 1 to Deo. 31,1915 i 451,955 31,426 420,529 edness acquired from time to time. None of .Tan. 1 to Dec. 31,1916 : 685,745 155.793 529,952 Jan. 1 to Aug. 17,1917 ! 536,817 293; 621 243,196 the banks report any important purchases of Total ! 1,697,770 585,812 1,111,958 municipal warrants, while liquidation continues, as the securities held fall due. 1 Excess of exports over imports. In the following table are shown the changes Continued reports to the effect that large between July 20 and August 24 in the amounts gold shipments were being effected led the of bills held by each of the Federal Reserve Board, on August 13, to address to all Federal Banks, also changes in the total amounts of Reserve Banks a letter calling their attention other classes of investments: to the question of shipments of gold and of [In thousands of dollars; i. o., 000 omitted.] remittances to foreign countries. Special attention was called to a letter received from the Federal Reserve Bank. July 20. Aug. 24. j Net de- Secretary of the Treasury, in which it wTas crease. stated that— Boston i $34,926 $423 "It seems important that close attention be New York I 133,554 68,329 Philadelphia ! 24,642 given to shipments of gold and to remittances Cleveland ! 17,686 Richmond | 18,663 to foreign countries, and I am therefore re- Atlanta ! 6,559 questing that the Federal Reserve Board com- Chicago | 50,535 St. Louis. municate with the Federal Reserve Banks Minneapolis 10,648 Kansas City j 24,061 urging that they keep in touch as closely as Dallas j 7,925 possible with transactions of this character San Francisco ! 14,899 and report them to the Board for my infor- Total bills ! 359, 111 mation as well as for the use of the Board." Total U. S. securities ! 75,315 Total municipal warrants j 2,186 It will be remembered that the Board, as Total investments held i 436,612 early as May 10, sent out to all Federal Re- For the past 5 weeks net exports of gold, serve Banks a letter calling their attention to Gold shipments mainly to the Far East and to the desire of the State Department that bankers and foreign ex- Spain, have continued on a throughout the country be warned that they change. large scale. These exports should scrutinize most carefulfy every appliwere especially heavy during the weeks ending- cation made to them involving the transfer of July 27 and August 3, when gold exports ex- funds to neutral European countries wThich ceeded imports by $20,046,000 and $17,558,000, seemed intended to give aid to the enemies of respectively. The net outward movement of this country, either directly or indirectly. Cir- 7830—17 2 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

656 FEDERAL RESERVE BULLETIN. SEPTEMBER 1,1917. culars have been sent by Federal Reserve Banks reserve requirements city banks, acting as to members again calling their attention to the 11 reserve agents," performed these functions on warning of M"ay 10, now emphasized by the behalf of their correspondents in other places. Board's letter of August 13. In transmitting The period when no deposits except those in the communication of May 10, the Board reserve banks continue to be counted as reoriginally suggested that each banker doing serves having arrived, it has been recognized business in this country should scrutinize with that there may be some hardship to the banks particular care such accounts as might be of the country should they be required for held by his bank for any resident alien enemy, collection purposes to maintain balances with and in the event any suspicious transactions city banks which have heretofore held their occurred in connection with such accounts, reserves, in addition to the deposits required that they be reported immediately to the by law to be carried in the reserve banks. The Board for transmission to the proper depart- occasion for establishing departments designed ment. for the collection of maturing notes and bills The transactions which are interesting to is thus immediate, and the Board's letter the State Department, it was then noted, may already referred to was intended as a recognibe divided into three classes: tion of this necessity on the part of member 1. Foreign exchange transactions between banks generally. The present plan contembanks in this country and banks in neutral plates that every Federal Reserve Bank give countries in Europe. notice that it will undertake the collection of 2. Ordinary banking transactions such as maturing notes and bills which are payable the obtaining of credits by alien enemies resi- at any town or city where the Federal Reserve dent in the United States. Bank has satisfactory arrangements for col- 3. Banking transactions between this coun- lecting checks through banks, and that a try and Mexico, or Central American and similar notice be sent to every other Federal South American countries. Reserve Bank that such collection will be made The State Department is especially inter- for other Federal Reserve Banks on satisfactory ested in preventing all transfers of monejr by banking points in its own district. The banks cable, by draft, or by shipments of currency are to let it be known that these collections or otherwise to neutral countries in Europe will be made subject to the usual limitations for the account of alien enemies. as to liability, the actual cost of collection to A circular letter printed in this issue of the be deducted when the proceeds are accounted Bulletin was transmitted by for, while for their protection they may exact Collection of the Board, under date of Au- a moderate service charge. By recognizing in "time items." gust 11, to all Federal Reserve its letter of August 11 the full authority of the Banks. In this the banks were requested to member banks to continue to ask reasonable establish general collection departments for fees for the collection of maturing paper, the maturing notes and bills. This does not repre- Board merely places the facilities of the system sent a new departure. As early as October, at the service of members in the further 1915, in a letter sent to all Federal Reserve development of a legitimate source of revenue. Agents, the Board ruled that Federal Reserve The interpretation of the recent legislation of Banks might and should collect maturing Congress as applied to the col- Check collection ^ ,. - , , , , „, notes and drafts, as well as coupons, on behalf charges lection oi checks and dralts of their member banks, making such collec- has evidently raised some diftions either from member or from nonmember ference of opinion among bankers and business banks, as circumstances might require. The men, and the Board has frequently been asked matter has never heretofore become urgent, for an expression of its views on the subject. due to the fact that during the life of the old This is contained in the letter of August 11, Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

SEPTEMBEB 1, 19.17. FEDEKAL BESEKVE BULLETIN. 657 elsewhere published in this issue, and also in a As noted in the last issue of the Bulletin, the letter addressed to a Federal Reserve Bank Board has been making a under date of August 17, in which Gov. Hard- Trade acceptance general inquiry into the use of ing expresses the following opinion: inquiry. acceptances by business houses throughout the country. The "1 feel safe in saying that the construction of results now available show that the introthe law as amended, and of the letter of August 11, may bo expressed briefly as follows: duction of the trade acceptance is proceeding " (1) Member banks must remit to Federal slowly. Under existing commercial practice Reserve Banks at par for checks and drafts most trades have become habituated to the use drawn on them. of the so-called cash discount system. In ac- " (2) Member banks may make a reasonable cordance with that system, buyers very gencharge against other banks and against their depositors for any checks and drafts on banks erally draw upon a previously accumulated received on deposit, the reasonableness of the bank balance or else furnish themselves with charge to be determined by the Federal Re- the necessary funds by giving their local bankers serve Board, and in no event to exceed onetheir own notes, either with or without coltenth of 1 per cent. lateral. Immediate payment made by the use " (3) There is a distinction between promisof such funds is rewarded by the allowance of a sory notes, bills of exchange, and drafts drawn on individuals, firms, and corporations other substantial discount for this " cash" remittance. than banks, and checks and drafts drawn on The "cash" has, however, as just noted, been banks; and counsel advises the Board that the provided in many instances by local borrowing. act does not appear to place any limitations With few exceptions the business houses of the upon a charge that banks may impose for the country show themselves inclined to maintain collection and remittances of promissory notes, bills of exchange, and drafts drawn on indi- this system, sometimes adopting in conjuncviduals, firms, and corporations other than tion with it the plan of requiring acceptances banks.;J from those buyers who are not able, or for some reason do not choose, to take advantage of the The application of this principle would mean cash discount, liquidating their indebtedness that reasonable charges up to, but not exceedat maturity without discount. Trade accepting, one-tenth of 1 per cent might legally be ances are thus, in many cases, assuming a posimade by member banks for the collection by tion as representatives of obligations incurred them of checks drawn upon other banks. by concerns which find it easier or preferable Member banks, however, can not exact from to be carried during the necessary credit period Federal Reserve Banks a charge for remitting by their mercantile creditors rather than by for checks drawn upon themselves or sent to banks. The problem of improving the.comthem for collection by a Federal Reserve mercial paper of the country can not be solved Bank. In the past competition has tended in in this way, but requires the adoption of many places to prevent local institutions from methods which will result in the substitution making such charges against their customers of discountable two-name paper for the main except where agreements jointly entered into body of the "straight notes" which now repreand enforced were applied for the purpose of sent the bulk of the commercial obligations of protecting or maintaining a charge upon the Nation. certain classes of checks. The Federal Reserve Board has not yet formulated regulations The problem must be solved by the business to determine the charges which banks may man rather than the banker. Solution of ac- , • • ,i , i make against their customers, believing that T7ri 3 ceptance problem. ^h at 1S re(lmred is that each action on the subject should be deferred til] trade find a solution which will there was a more general adherence to the be suited to its own requirements. It appears principles of par remittance by nonmember as to the Board that between the cash-discount well as member banks. and the open-account sale there should be Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

658 FEDERAL RESERVE BULLETIN. SEPTEMBER 1,1917. room for a special discount for sales against It would appear that there is no doubt of the trade acceptances and that this discount authority of the banks which in the past have should approach very nearly the discount been granted acceptance powers to continue granted for cash sales. If business men will to exercise such powers without reapplication attack the problem from this angle and the banks involving action of the Board therein. In will lend their aid by granting preferential order to make the situation certain, however, rates for trade acceptances the problem can the Board at a meeting held August 9, 1917, be worked out. A solution will be a gain for adopted the following general resolution: the United States inasmuch as it will con- Be it resolved, That any member bank which tribute to the healthy development and greater has heretofore applied for and received perstrength of our banking structure. Accept- mission of the Federal Reserve Board to accept ances, in order to fulfill their most important drafts and bills of exchange in an amount not to exceed 100 per cent of its capital and surmission, must be representative of the best plus, be, and it is hereby authorized and emof mercantile credit; otherwise they will necespowered under the authority of the act of June sarily come to occupy- a secondary position as 21, 1917, to accept up to 100 per cent drafts the embodiment of the less fluid elements of or bills of exchange drawn upon it having not the country's business. There appears to be more than six months' sight to run, exclusive of days of grace, which grow out of transaca mistaken supposition in some quarters that tions involving the importation or exportation the mere conversion of the "open account" of goods or which grow out of transactions into a trade acceptance renders the underlying involving the domestic shipment of goods, procredit better than, or preferable to, the un- vided shipping documents conveying or secursecured account. The Board has never con- ing title are attached at the time of acceptance; or which are secured at the time of acceptance tended that the use of the trade acceptance, by a warehouse receipt or other such document as such, could alter the character of the credit conveying or securing title covering readily underlying it, but only that the acceptance marketable staples. method, involving as it did, the creation of The authority herein granted shall be effecpaper protected by two names, rendered the tive from this date, subject, however, to revocation by the Board at any time, upon 90 paper more secure and more readily salable days' notice, as to any or all of the banks than it otherwise would be. The essential which are subject to the provisions of this question is, however, in all cases the character resolution. of the underlying credit itself, a question which Resolved further, That a copy of this resothe local banker is in the best position to answer. lution be sent to each bank which has heretofore been granted permission by the Board to accept such drafts and bills of exchange to an amount not to exceed 100 per cent of its capital Acceptance of Drafts and Bills. and surplus. Inquiries and applications with respect to the Applications for power to accept drafts drawn power to accept drafts and bills of exchange, by banks and bankers in South American counpresented to Federal Reserve Board, have tries have been received from several instituraised the question whether the institutions tions, and the Board has voted to permit drafts which had been authorized to accept up to 100 drawn upon member banks by banks or bankers per cent prior to the passage of the act of Sep- in any Central or South American country for tember 7, 1916, from which provision for this the purposes specified in the Federal Reserve acceptance power was inadvertently omitted, Act, to be accepted by such member banks, would be required to make application over upon application to and approval by the Board. again under the amendments to the Federal Since the passage of the act amending the Reserve Act adopted June 21, 1917. Federal Reserve Act in June, the following Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

SEPTEMBER 1,1917. FEDERAL RESERVE BULLETIN". 659 banks have been authorized to accept drafts Officers of the Federal Reserve Board. or bills of exchange up to 100 per cent of their The following press statement was issued by capital and surplus. the Board on August 10, 1917: Blackstone Canal National Bank, Providence, R. I. The President has redesignated W. P. G« National Park Bank, New York City. Harding as governor and Paul M. Warburg as Citizens National Bank, New York City. vice governor of the Federal Reserve Board for Girard National Bank, Philadelphia, Pa. Union National Bank, Cleveland, Ohio. the ensuing year. Fifth-Third National Bank, Cincinnati, Ohio. Farmers & Merchants National Bank, Baltimore, Md. State Banks Admitted. Murchison National Bank, Wilmington, N. C. First National Bank, Danville, Va. The following State institutions have been Norfolk National Bank, Norfolk, Va. admitted to the Federal Reserve System during American National Bank, Richmond, Va. the month of August: Norwood Trust Co., of National Bank of Savannah, Ga. New Orleans National Bank, New Orleans, La. Norwood, Mass.; Iowa Loan & Trust Co., of First National Bank, Canton, Miss. Des Moines, Iowa; State Bank of Chicago, Tenison National Bank, Dallas, Tex. Chicago, 111.; Hibernia Bank & Trust Co., of First National Bank, Portland, Oreg. New Orleans, La.; Ottumwa Savings Bank Northwestern National Bank, Portland, Oreg. of Ottumwa, Iowa; State Bank of Evanston, | 111.; Central State Bank, of Jackson, Mich.; | Peoples Bank of Harrisonburg, Va.; Foreman Loans to Cattle Raisers. Bros. Banking Co. of Chicago, 111.; Fairview State Bank of Fairview, Kans.; Peoples Bank The following letter was sent by the Board to I & Trust Company of Chase City, Va.; Merall Federal Reserve Banks under date of August I chants Bank of Winona, Minn.; American 22: ! Trust Company of Boston, Mass.; Yellowstone The Board has received a letter from the Valley Bank & Trust Company of Sidney, Food Administrator, Mr. Hoover, stating that he is just beginning a campaign to secure a Mont.; Peoples State Bank of Detroit, Mich. larger amount of cattle feeding in this country, Seventy-seven State institutions are now memand that his investigation shows that the in- bers of the system, having a total capital of terest charge represents between 35 and 40 per $59,465,700, total surplus of $60,525,965, and cent of the total costs of this industry. The total resources of $1,173,795,038. legal rate of interest in many of the cattleraising States is 8 per cent or more, and the Food Administrator suggests that if banks Cooperation of State Banks in New York. would make loans to the cattle people at a rate of interest not exceeding 7 per cent (which he The following letter, sent out on August 10 thinks they can afford to do in view of the 5 per by the Federal Reserve Bank of New York, cent rediscount rate on six months7 paper based states the situation with respect to banking on live stock, available at most of the Federal cooperation in the control of gold: Reserve Banks), a stimulus would be given to the cattle raising industry, which all will agree DEAR SIR: The recent amendment to the is greatly needed at this time. The Board ap- Federal Reserve Act, reducing the reserve repreciates, of course, the limitations upon its quirements for member banks quite materially, powers in this respect, and does not wish to put provides that they must carry all of the reany pressure upon the banks to induce them to quired reserve in the Federal Reserve Bank. charge less than legal rates, but it is informing This leaves these banks free to carry as vaultyou of the suggestion made by Mr. Hoover in money any kind of United States coin or curorder that, should you deem it expedient, you rency, including Federal Reserve notes. may point out to your member banks this op- The banking law of New York State has portunity of rendering very effective help in the also recently been amended, permitting State present food crisis. banks and trust companies to count Federal Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

660 FEDERAL RESERVE BULLETIN. SEPTEMBER 1,1917. Reserve notes as part of their vault reserves. on such gold certificates, whether fit or unfit The banking laws of New Jersey and .Connecti- for circulation, and either (a) furnish you incut also permit Federal Reserve notes to be stead, free of expense, Federal Reserve notes counted as part of the vault reserve which of such denominations as you may desire, or their State banks and trust companies are re- (&) place the amount to your credit in this bank quired to carry. or in any designated bank in New" York City. The way is now clear for mutual cooperation, A considerable number of member and other in the national interest, between the Federal banks have been cooperating with us along Reserve Bank of New York and the banking the lines above suggested during the past year, institutions, both member and nonmember, even though their reserve requirements were in its district, in respect to diverting to the such that Federal Reserve notes could not be Federal Reserve Bank some of the gold and carried as part of their vault reserve. Now gold certificates which are in general circula- that the conditions in this respect are so unition among the people and lying idle in com- formly satisfaction, we trust that all of the mercial tills and elsewhere, thus increasing its banks in this district will be willing to assist. strength and thereby the strength of every It will necessitate some little labor on your banking institution in the district. It is esti- part, but no added expense. mated that there is over $500,000,000^ of gold Will you please let us know whether we and gold certificates in general circulation, out- may count on your cooperation in the manner side of the banks and the United States Treas- suggested ? ury, and it is generally recognized that for this Very truly, yours, class of circulation Federal Reserve notes (which R. H. TREMAN, Deputy Governor. are redeemable in gold at the Treasury of the United States) would serve equally well. The Federal Reserve System was suddenly called on during June to supply the large tem- Development of the Collection System. porary expansion of credit required by member and other banks in effecting the payments for Questions raised by Federal Reserve Banks the first Liberty Loan, and it will doubtless and by member banks in connection with the be similarly called upon, and probably to a situation produced by the final transfer of greater extent, in the forthcoming issue and in reserves have led the Federal Reserve Board to other large financial operations incidental to our participation in the war. The recent give further attention to the development of expansion and subsequent contraction of the existing system of collection and to take credit may be illustrated by the loans and dis- action accordingly. Three steps have been counts of the Federal Reserve Bank of New announced during the past month. York, which were $37,000,000 on June 1, 1917, The first of these steps is the further expan- $252,000,000 on June 19, and $73,000,000 on August 8. It is of importance to every bank sion and improvement of the system already in the country that the gold suppfy—that is, in force for the collection of checks. On July the credit power—of the Federal Reserve Sys- 25 a letter, reading in part as follows, was tem should be strengthened by gradually retransmitted to ajl Federal Reserve Banks: placing with Federal Reserve notes a considerable part of the gold now in general circu- (1) For the time being, any Federal Reserve lation outside of the banks, and that the Bank may, at its discretion, extend to each system should thus attain its maximum, member and clearing bank an exemption from strength for the period of war financing upon service charges upon a maximum of 250 checks which we have entered. per month. The Board believes that this Will you not, therefore, cooperate in this exemption will encourage direct dealings on movement by sorting out of your incoming cash the part of the smaller banks with their Federal the gold certificates, not paying out an}^ such Reserve Bank. certificates over your counter unless especially (2) In cases where checks are not sent to requested, but instead, forwarding to this bank the Federal Reserve Banks but are sent direct all you may accumulate in excess of those you from one member bank to another for credit think it advisable to carry as part of your vault of the sending bank on the books of the Federal money? We will pay transportation charges Reserve Bank, these transactions should be Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

SEPTEMBEK 1, 1017. FEDERAL BESEBVE BULLETIN. 661 mutually agreeable to the banks concerned; MATUHING NOTES AND BILLS. for the Board can not prevent the receiving bank from making a reasonable charge (as It will be noted that in the latter part of the between banks) for the transfer as provided in foregoing communication the suggestion was section 13 as amended. An opportunity is made that the collection not only of checks but afforded all member banks to clear their checks also of maturing notes and bills be undertaken. at par by sending them to the Federal Reserve Bank, if, for the purpose of saving time, or Further elaboration of this recommendation for any other reason, a bank desires to send its was subsequently undertaken in a letter dated checks direct, it should make its own arrange- August 11, and transmitted to all Federal ments. Reserve Banks, in part as follows: (3) As the Federal Reserve Act as amended provides that no form of money in the vaults The Board deems it advisable that there of member banks can be counted as reserve, it should be a thorough understanding on the may be expected that their stock of gold and part of the Federal Reserve Banks and of the lawful money will be diminished, and that member banks of its attitude in relation to the there will be a corresponding increase in their collection of "maturing notes and bills," and stock of national bank notes and Federal Re- wishes to invite your attention to the disserve notes. Therefore, pending the further tinction between the par clearing and collection development of the clearing system, Federal of checks and drafts drawn on member banks Reserve Banks should receive from banks which and the collection of notes and drafts made by are obliged to make shipments of cash to keep or drawn upon individuals, firms, or corporatheir balances good, any form of United States tions other than banks. currency fit for circulation on the same terms Section 13 of the Federal Reserve Act, as which have been heretofore extended to shipamended by the act approved June 21, 1917, ments of gold certificates and legal tenders. says in part— In connection with the collection of maturing "Provided further, That nothing in this or notes and bills, to which reference was made in any other section of this act shall be construed the letter of July 19, the Board wishes to point as prohibiting a member or nonmember bank out that— from making reasonable charges, to be de- (4) Section 13 as amended permits a Federal termined and regulated by the Federal Reserve Reserve Bank to receive from member banks Board, but in no case to exceed 10 cents per for collection maturing notes and bills; and, $100 or fraction thereof, based on the total of for purposes of exchange or of collection, from checks and drafts presented at any one time, other Federal Reserve Banks maturing notes for collection or payment of checks and drafts and bills, payable in its district; or, solely for and remission therefor by exchange or otherpurposes of exchange or collection, from any wise; but no such charges shall be made against nonmember bank, maturing notes and bills. the Federal Reserve Banks." Each Federal Reserve Bank, therefore, should give notice that it will undertake the collec- The question has been raised whether this tion of maturing notes and bills which are provision of the law would prohibit a member payable at any town or city where the Federal bank from charging a Federal Reserve Bank Reserve Bank has satisfactory arrangements for for collecting and remitting for a note or bill collecting checks through banks, and a similar of exchange forwarded to it by a Federal Renotice should be sent to every other Federal serve Bank for that purpose. In other words, Reserve Bank that such collection will be made does this provision of the law apply to promisfor other Federal Reserve Banks on satis- sory notes and bills of exchange as well as to factory banking points in its own district. checks and drafts on member banks? The The banks should announce that these collec- Federal Reserve Act in several sections clearly tions will be made subject to the usual limita- distinguishes between "checks and drafts" on tions as to liability, the actual cost of collection the one hand and "notes and bills" on the to be deducted when the proceeds are ac- other. For instance, the first paragraph of counted for, and for their protection may section 13 authorizes Federal Reserve Banks to exact a service charge of say 25 cents for each receive from member banks deposits of " checks unpaid item. and drafts," without limiting the purpose for Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

662 FEDERAL RESERVE BULLETIN. SEPTEMBER 1,1917. which the deposit must be made. The same bank by the Federal Reserve Bank for collecparagraph authorizes a Federal Reserve Bank tion, are not drawn on the member bank, but to receive "maturing notes and bills," but "for upon some third party; and it would be uncollection" only. So, also, section 16 of the reasonable and unfair to permit a Federal act requires a Federal Reserve Bank to re- Reserve Bank to select any particular member ceive deposits of "checks and drafts drawn or nonmember bank to act as its intermediary upon any of its depositors" (i. e., upon member or agent for the purpose of collecting and banks and upon banks carrying balances with remitting free of charge all of the notes and Federal Reserve Banks), but nowhere is there bills held by it for collection and payable in any any requirement that "maturing notes and particular city or locality. Such service must bills" must be received at par, and it is obvious be performed by the member or nonmember 4 that such items were eliminated for the reason bank only as a matter of contract, and not that no bank can properly be forced to credit because of any legal or moral obligation upon at par an unmatured or uncollected note or such bank to make collections gratis for the bill. Not being in the nature of a cash item, Federal Reserve Bank or for the banks for such an instrument is necessarily subject to a whom it acts as agent. discount. In other words, Congress in this In the case of "checks and drafts drawn section distinguishes between the ordinary upon any of its depositors" (i. e., banks), check and bank draft, and the note and bill of however, the law provides that no charge for exchange. the service of collection, and payment and With these lights before us, a proper con- remission by exchange or otherwise, should be struction of the so-called "Hardwick amend- assessed against Federal Reserve Banks. The ment" to section 13 which, in terms, provides Board holds that the reason for this is that that "nothing in the act shall be construed as the Federal Reserve Banks arc affording all prohibiting a member or nonmember bank member banks certain reciprocal advantages in from making charges * * * for collection the collection and clearance of checks, and or payment of checks and drafts and remission because the Federal Reserve Banks are oblitherefor by exchange or otherwise, but no gated to receive checks at par they may such charges shall be made against the Federal properly expect remission therefor on the same Reserve Banks" must necessarily draw a dis- basis. In other words, the prohibition in the tinction between checks and drafts (on banks) Hardwick amendment relating to the charges and promissory notes and bills of exchange. on the collection of checks and drafts on Both the wording of this amendment and the banks for Federal Reserve Banks, is merely an purpose for which it was enacted necessarily lead equalizing element in perfecting the check to the conclusion that it was not intended to collection system, which must afford reciprocal prohibit a member bank from charging a privileges and advantages with the least possi- Federal Reserve Bank for services rendered in ble expense to all concerned. collecting bills and notes which the Federal The paragraph of section 16 which immedi- Reserve Bank sends to it for that purpose. ately follows the one which requires Federal The phrase, "but no such charges shall be Reserve Banks to receive on deposit checks at made against the Federal Reserve Banks" is par, authorities the Federal Reserve Board at construed by the Board as being intended its discretion to exercise the functions of a solely for the purpose of preserving the check clearing house for Federal Reserve Banks, or clearing and collection system inaugurated by to designate a Federal Reserve Bank to exerthe various Federal Reserve Banks; and there cise such functions, and to require each Federal was no intention, either express or implied, to Reserve Bank to exercise the functions of a prohibit member banks or nonmember banks clearing house for its member banks. In from making reasonable charges against Fed- clearing house cities checks on member banks eral Reserve Banks for services rendered in properly go to the clearing house, but promiscollecting maturing notes and bills. sory notes and drafts or bills of exchange The Board holds, therefore, that charges for payable by third parties, are not sent to the transactions of this kind may be made now clearing house but are collected independently with the same propriety as before the passage by the holding bank. of the act of June 21, 1917. Such charges For these reasons the Federal Reserve Board would seem to be permissible upon the hypothe- is of the opinion that not only is it clear that sis that notes and bills thus sent to a member the Hardwick amendment does not apply to Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

SEPTEMBER 1, 1917. FEDERAL RESERVE BULLETIN. 663 the right of a member bank to charge the market by the Secretary of the Treasury. The Federal Reserve Bank for the service of col- first issue, amounting to $300,000,000, was lecting notes and bills of exchange, but also offered to the banks on July 31, while the that there is no sound reason or policy which second, amounting to $250,000,000, was offered would require that the Federal Reserve Banks should be immune from such a charge. While on August 20. The conditions and circumthe Board must insist upon a strict compliance stances surrounding these issues have been by the member banks with the law requiring explained in statements made public by the par collection of checks for Federal Reserve Secretary of the Treasury on July 31 and Banks, it has no desire to deprive any bank of August 19, as follows: any compensation allowed by the law and to which the bank may be reasonably entitled. JULY 31, 1917. Because of competition, banks are performing Secretary McAdoo has decided to resume many services free of charge which involve offerings of United States Treasury certificates them in expense and for which they are justly of indebtedness in order to provide funds to entitled to remuneration. meet the requirements of tne United States In the opinion of the Board it should be the for its own expenditures and for its advances aim of the Federal Reserve Banks in develop- to foreign Governments at war with the German ing plans for the collection of " maturing notes Government. and bills/7 to offer efficient service, but they The Secretary now offers for subscription at should be compensated and protected against par (through the Federal Reserve Banks) any abuse or expense in performing this serv- $300,000,000 Treasury certificates of indebtedice, and this principle applies, of course, to ness, payable November 15, 1917, with interest member banks. at the rate of 3| per cent per annum from August 9, 1917. Subscriptions will be received INTERPRETATION OF EXCHANGE AMENDMENT. at Federal Reserve Banks until 3 p. m., August The third step in the Board's work on the 7, their local time. Payment for certificates allotted must be made on August 9 to that exchange situation during the month was also Federal Reserve Bank through which subscriptaken in the letter of August 11, already tion may have been made. The right is reserved largely quoted above. The last paragraph to reject any subscription and to allot less than of that letter contained a ruling with respect the amount'of certificates applied for. Interim to the effect of the exchange amendment to certificates may be delivered in the first instance, which will be exchangeable for the the act of June 21 in the following language: definitive certificates of indebtedness when It seems that some apprehension exists on prepared. Certificates will be in denominathe part of many member banks that the tions of $1,000, $5000, §10,000, and $100,000. ; clearing of checks at par is but a prelude to The act of Congress approved April 24, 1917, a requirement that they make no charge for provides that these certificates shall be exempt, checks and drafts received by them for deposit both as to principal and interest, from all and credit, or for collection and remittance taxation, except estate or inheritance taxes, from others than a Federal Reserve Bank. It imposed by authority of the United States appears, however, that the provisions of the or its possessions, or by any State or local so-called Hardwick amendment clearly pre- taxing authority. Upon 10 days' notice, given serve the right of any member bank to make in such manner as may be determined by a reasonable charge against depositors or the Secretary of the Treasury, the series banks other than Federal Reserve "Banks, not of $300,000,000 certificates now offered may to exceed one-tenth of 1 per cent, for such be redeemed as a whole, at par and acservices, the amount of such charge to be crued interest, on or after the date set for determined and regulated by the Federal the payment of the first installment, payable Reserve Board. after allotment, of the subscription price of any bonds offered for subscription by the United States hereafter and before the ma- New Issues of Treasury Certificates. turity of the certificates. The certificates of During the past month two issues of Gov- this series, whether or not called for redempernment certificates of indebtedness bearing tion, will be accepted at par, with an adjustment of accrued interest, if tendered on said 3J per cent interest have been placed upon the 7830—17 3 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

664 FEDERAL RESERVE BULLETIN". SEPTEMBER 1,1917. installment date as payment on the purchase in proportion to the subscriptions for certifiprice of any such bonds issued and allotted cates of indebtedness of this issue made by hereafter and before the maturity of the cer- and through them respectively, provided, that tificates. such subscribing banks and trust companies make application for such deposits and qualify AUGUST 19, 1917. therefor, all substantially in accordance with Secretary McAdoo offers for subscription at the procedure laid down in connection with par (through the Federal Reserve Banks) the deposit of the proceeds of Liberty Bonds, $250,000,000 of Treasury certificates of in- and upon the same terms and conditions. debtedness payable on November 30, 1917, Such deposits will be left as long as the requirewith interest at the rate of 3|- per cent per ments of the Government permit, and whenannum from August 28, 1917. Subscriptions ever practicable five days7 notice will be given will be received at the Federal Reserve Banks before withdrawal. It is expected that ceruntil 12 o'clock noon, August 25, 1917, their tificates of indebtedness will be issued from local time. time to time somewhat in advance of the im- Payment for certificates allotted must be mediate requirements of the United States. made on August 28, 1917, to that Federal The pnmar}^ object of this is to avoid the Reserve Bank through which subscription may financial stress which would result from the have been made. The right is reserved to re- concentration of the payments for a great bond ject any subscription and to allot less than the issue upon a single day (which can not be amount of certificates applied for. Interim avoided wholly by provision for payment by certificates ma}^ be delivered in the first in- installments as a great proportion of substance, which will be exchangeable for the scribers prefer to make payment in full on one definitive certificates of indebtedness when pre- day as a matter of convenience). Those who pared. Certificates will be in denominations acquire certificates of indebtedness, in advance of $1,000, $5,000, $10,000, and $100,000. of the bond issue, gradually, without dis- The act of Congress approved April 24, 1917, turbing the money position, purchase exchange provides that these certificates shall be exempt, payable where the bond subscriptions must be both as to principal and interest, from all taxa- paid (that is, at the Federal Reserve Banks), tion, except estate or inheritance taxes, im- in advance of the date when the payment is posed by authority of the United States, or its to be made, and meanwhile secure a substantial possessions, or by any State or local taxing return upon their money. authority. Upon 10 day's7 notice given in such manner as may be determined by the Secretary of the Treasury, the series of $250,000,000 certificates Growth of the Acceptance Business. now offered may be redeemed as a whole, at Data presented below indicate to some expar and accrued interest, on or after the date set for the payment of the first installment, tent the increase in the volume of acceptances payable after allotment, of the subscription outstanding since the publication of similar price of any bonds offered for subscription by figures in the May, 1917, Bulletin. During the United States hereafter and before the the period between March 5 and June 20, 1917, maturity of the certificates. The certificates of this series, whether or not called for redemp- the liabilities of national banks on account of tion, will be accepted at par, with an adjust- acceptances increased from $101,485,000 to ment of accrued interest, if tendered on said $144,414,000, or $42,929,000, the greater porinstallment date as payment on the purchase tion of the increase, or $33,865,000, occurring price of any such bonds issued and allotted between May 1 and June 20. hereafter and before the maturity of the certificates. Acceptance liabilities shown for the national In connection with the foregoing offering of banks of Chicago increased about 127 per cent the second issue of certificates of indebtedness between March 5 and June 20, and those of of the United States preparatory to the second San Francisco about 97 per cent, while the issue of the Liberty Loan, the Secretary of the national banks in Greater New York and Treasury announces that the proceeds of these certificates mil be deposited with incorporated Boston report increases of about 57 and 40 per banks and trust companies as nearly asmaybe cent, respectively. Both Cleveland and Cin- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

SEPTEMBER 1,1917. FEDERAL RESERVE BULLETIN. 665 cinnati report acceptances in some volume for | agencies of foreign banks for which no data are the first time on June 20. The net increase for available, these institutions making no public all national banks during the period under con- reports of their condition. sideration was over 42 per cent. Bankeers' acceptances held by the Federal During the same period the acceptance Reserve Banks on March 5, as shown by data liabilities of trust companies in Greater New compiled from reports received by the Federal York show a decrease of $7,755,000, and are Reserve Board, aggregated nearly 108 millions, given as $94,485,000 on June 20. On the of which 20.6 millions represented acceptance other hand, the trust companies of Boston liabilities of private banking institutions. On show an increase from $6,506,000 on March 5 June 25 the holdings of the Federal Reserve to $16,979,000 on June 20, or nearly 10.5 Banks had increased to over 196 millions, 31.2 million dollars. millions of which represented acceptances of private banks and 3.2 millions acceptances of Acceptance liabilities of national banks in principal cities of American branches and agencies of foreign the United States on specified dates. banks. [In thousands of dollars; i. e., 000 omitted.] No definite data are obtainable regarding the volume of nonmember bank acceptances out- Mar. 5, May 1, June 20, 1917. 1917. 1917. standing other than those shown in the above table, and the figures giving the distribution New York 50,720 56,808 79,473 Boston 21,835 23,439 30,681 of the acceptance holdings of the Federal Re- Philadelphia 8,849 6,154 8,513 Cleveland 70 270 1,494 serve Banks distributed by accepting institu- Cincinnati 22 23 1,578 Baltimore 463 2,755 1,966 tions, as published on page 718. New Orleans 1,962 1,239 1,394 Charleston, S. C. 1,300 1,093 660 The total amount of acceptance liabilities Chicago 1,480 967 3,357 Minneapolis 4,272 6,072 1,468 given in the above table, plus the amount of San Francisco 2,869 3,861 5,646 Allother 7,643 7,868 8,184 acceptances of private banks and American Total 101,485 110,549 144,414 branches and agencies of foreign banks held by the Federal Reserve Banks on June 20, aggre- Available data regarding acceptance liabili- gate about $294,000,000. It is, therefore, ties of American banking institutions on dates probable that the total acceptance liabilities of the last three calls for condition statements of all banking institutions in the United made by the Comptroller of the Currency are States, on June 20, 1917, were not less than as follows: $350,000,000. [In thousands of dollars; i. e., 000 omitted.] Condition of National Banks. Mar. 5, May 1, June 20, 1917. 1917. 1917. The 'condition of national banks on June 20, 1917, the last report which will be made by All national banks . 101,485 110,549 144,414 Feb. 28, national banks under the old reserve require- 1917. Trust companies in Greater New York.. 102,240 (*) 94,485 ments, was announced by the Comptroller of State banks in Greater New York 6,546 <l) 5,957 Trust companies in Boston 6,506 2 10,823 16,979 the Currency on August 1, as follows: Mar. 5, 1917. Resources aggregated $16,151,000,000, which State banks and trust companies in Baltimore 3,330 1,825 1,765 is §6,637,000 ahead of the resources of May 1, Total 220,107 263,600 1917, the greatest ever reported up to that time. The increase in total resources as comi No data available. 2 Old Colony Trust Co. figures only. pared with June 30, 1916, was $2,224,000,000. Total deposits June 20, 1917, were 12,769 It will be noted that the above figures do millions, a reduction of 306 millions as comnot include any acceptances of the large private pared with May 1, 1917, but an increase of banking institutions or American branches and 1,913 millions as compared with June 30, 1916. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

666 FEDEEAL RESERVE BULLETIN. SEPTEMBER 1,1917. Loans and discounts were $8,818,000,000 $1,482,000,000, which was $14,000,000 in an increase over May 1 of 66 millions and an excess of the total amount of reserve required, increase over June 30, 1916, of $1,139,000,000. therefore the banks on the date mentioned United States bonds were reported at held in their vaults and with Federal Reserve 905 millions, an increase since May 1, 1917, of banks $14,000,000 more than the amount re- 137 millions, and an increase since June 30, quired in addition to the $828,000,000 reserve 1916, of 174 millions. The national banks also carried with the Reserve Agents. report an additional amount of $171,000,000 On June 20, 1917, the central reserve cities paid on account of subscriptions to Liberty held 19.70 per cent of reserve against a rebonds. quired reserve of 18 per cent. Other reserve Specie and legal tenders on hand plus bal- cities held 22.45 per cent against a requirement ance in Federal Reserve Banks amounted to of 15 per cent, while the country banks, which $1,482,000,000, a decrease as compared with were only required to carry 12 per cent, held on May 1, 1917, of 43 millions, but an increase June 20, 1917, a reserve of 25.33 per cent of since June 30, 1916, of $248,000,000. their net deposits. Bonds and securities other than Government's were reported at 1,843 millions, a reduction as compared with May 1, 1917, of 14 Permissive Membership in Pennsylvania. millions, and an increase since June 30, 1916, of $315,000,000. The Legislature of Pennsylvania has passed Amount due from banks other than Federal the following act permitting State institutions Reserve Banks was 1,637 millions, a decrease as compared with May 1, 1917, of 201 millions, to become members of the Federal Reserve and an increase of 99 millions as compared System: with June 30, 1916. An act authorizing any bank or trust company incor- Amount due to banks and bankers was porated under the laws of this Commonwealth to be- $3,025,000,000, a reduction of 353 millions come a member of a Federal Reserve Bank, and in such since May 1, 1917, but an increase of 312 event to be subject to all the provisions of the act of millions since June 30, 1916. Congress known as the Federal Reserve Act; allowing any such bank or trust company to comply with the Bills payable and rediscounts were $371,- reserve requirements of such act in lieu of those estab- 000,000, an increase as compared with May 1, lished by the laws of this Commonwealth; and permitting 1917, of $278,000,000, and an increase as the commissioner of banking to accept the examinations and audits made pursuant to such act in lieu of those compared with June 30, 1916, of $303,000,000. required by the laws of this Commonwealth. This increase was due to the temporary financing incident to the negotiation of the Liberty SECTION 1. Be it enacted by the Senate and bond issue. House of Representatives of the Commonwealth The call of June 20, 1917, was the last which of Pennsylvania in General Assembly met, and will be made under the old reserve require- it is hereby enacted by the authority of the same, ments. The new law recently passed requires That any bank or trust company incorpoall national-bank reserves to be carried with rated under the laws of this Commonwealth the twelve Federal Reserve banks. shall have the power to subscribe to the capital The total reserve held June 20, 1917, was stock and become a member of a Federal $2,310,000,000, a reduction as compared with Reserve Bank created and organized under an May 1, 1917, of $163,000,000, and an increase i act of the Congress of the United States apas compared with June 30, 1916, of $234,000,- proved tho twenty-third day of December, 000. The percentage of total reserve to anno Domini one thousand nine hundred and deposits June 30, 1917, was 22.91 as compared thirteen and known as the Federal Reserve ; with 24.05 per cent May 1, 1917, and with Act, 23.86 per cent June 30, 1916. SEC. 2. Any bank or trust company, incor- The surplus reserve ^ver and above the porated under the laws of this Commonwealth, amount required on June 20, 1917, was which shall become a member of a Federal $842,000,000, a reduction as compared with Reserve Bank, shall be subject to all the pro- May 1, 1917, of $132,000,000, and an increase visions of the Federal Reserve Act and its as compared with June 30,1916, of $41,000,000. amendments, and to the regulations of the The total reserve carried in vaults and with Federal Reserve Board applicable to such Federal Reserve banks June 20, 1917, was bank or trust company, and shall have all the Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

SEPTEMBER 1, 1917. FEDERAL RESERVE BULLETIN. 667 powers and assume all the liabilities conferred amount so held June 30, 1917, being approxiand imposed by said act. mately $400,000,000. SEC. 3. Any such bank or trust company The figures as to the engraving, issue, and shall comply with the reserve requirements of redemption and amount outstanding of nathe Federal Reserve Act and its amendments, and the compliance of such bank or trust tional-bank notes and Federal Reserve notes company therewith shall be in lieu of, and shall separately for the year ending June 30, 1917, relieve such bank or trust company from, are as follows: compliance with the provisions of the laws of this Commonwealth relating to the main- National- Federal Retenance of reserves. bank notes. serve notes. SEC. 4. Any such bank or trust company shall be subject to the examinations required New notes printed and delivered by the Bureau of Engraving and Printing from under the terms of the Federal Reserve Act, June 30,1916. to June 30,1917 $289,562,470 $968,820,000 and the commissioner of banking may, in his Notes issued by Comptroller's Office 3une 30,1916, to June 30,1917 328,961,130 629,480,000 discretion, accept such examinations in lieu Notes redeemed and destroyed through Comptroller's Office from June 30, 1916, of the examinations required under the laws to June 30,1917 357,359,750 102,216,640 of this Commonwealth. Excess of notes redeemed and destroyed June 30, 1916, to June 30, 1917, over SEC. 5. All acts and parts of acts incon- amount issued during same period I 28,398,620 Excess of notes issued, June 30, 1916, to sistent herewith are hereby repealed. June 30,1917, over amount redeemed and i Approved, July 17, 1917. destroyed, same period I 527,263,360 Total amount of new notes in vault June 30, 1917 383,430,460 661,740,000 Eeduction during the year in nationalbank notes in vault of 52,118,430 Increase during the same period in Federal Notes Issued During 1917. Reserve notes in vault of 192,260,000 Total amount of notes outstanding Juno 30, 1917 715,420,010 547,407,960 Reduction during the year in national-bank The Comptroller of the Currency on August notes outstanding of 28,754,650 Increase during the same period in Federal 9 made the following statement as to the na- Reserve notes outstanding, of 371,239,510 tional-bank notes and Federal Reserve notes issued and redeemed through his office during Why a Southern State Institution Has Entered the Federal Reserve System. the fiscal year ending June 30, 1917, and also showing the amount of notes of each class in the The Hibernia Bank & Trust Co., the largest Treasury vaults June 30, 1917, and the amount State bank and trust company in the South, of notes outstanding in the hands of the public has been admitted to membership in the on the same date: Federal Reserve System. In this connection, President John J. Gannon issued the following Total amount of national-bank notes and statement explaining the reasons why the Federal Reserve notes issued through the Office of the Comptroller of the Currency bank has entered the system: during the fiscal year ending June 30, "When the Federal Reserve Act first be- 1917 §958,441,130 came effective three years ago we seriously con- Amount redeemed and destroyed through sidered the advisability of joining the system Office of Comptroller of the Currency but at that time conditions were such that during same period 459, 576, 390 membership in the system would have inter- Total amount of notes outstanding June 30, fered to some extent with the privileges which 1917 1, 262, 827, 970 we enjoy as a State bank and trust company, Total amount new notes in vaults June 30, and we, therefore, postponed action until a 1917 1048,170,460 later date. The large increase (§371,239,510) in the "In view of the fact that recent amendments to the Federal Reserve Act eliminated amount of Federal Reserve notes outstanding all of these obstacles, our board of directors is due mainly to the issuance of Federal Reagain considered the question last month with serve notes against the deposit of gold or gold the result that we filed our application for certificates with the Federal Reserve agents, membership several weeks ago. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

668 FEDERAL RESERVE BULLETIN. SEPTEMBER 1,1917. "The Federal Reserve Board promptly sent in a better position to give every possible asits representatives to have the customary ex- sistance in the development of the commercial amination made, and upon their favorable re- possibilities of this section." port, which was filed this week, we were notified by wire to-day that we had been admitted to full membership in the Federal Reserve Description of Federal Reserve Districts. System. Below are furnished descriptions of the 12 "Our primary motive in applying for membership in the s}rstem at this time is our sense Federal Reserve districts, accompanied by estiof duty to our country, because we believe mates of the population of each district, rethat under the existing extraordinary condi- cently prepared by the Bureau of the Census tions it is very important that we should have for use of investigators at work on the Liberty a strong and unified banking system. Loan. No detailed description of Federal Re- "The Federal Reserve System has already demonstrated its great value to our Nation serve districts has been issued since the Organiduring the short time of its existence, but in zation Committee completed its work about our opinion the cooperation of the larger State three and one-half years ago. banks in the reserve and central reserve cities will be necessary if the system is to become DISTRICT NO. 1—BOSTON (6,963,987). the bulwark of financial strength which it CONNECTICUT (except Fairfield County) (975,434). should be and which we will need to keep business on an even keel, especially for the MAINE (777,340). duration of the war and the period of read- MASSACHUSETTS (3,775,973). justment which will follow. NEW HAMPSHIRE (444,429). "We have felt, therefore, that by joining RHODE ISLAND (625,865). the system now we are in a measure enlisting VERMONT (364,946). our resources in the Nation's cause, and are DISTRICT NO. 2—NEW YORK (13,111,816). thus contributing our share to the strength and CONNECTICUT (county of Fairfield) (289,939). stability of the financial condition of the country. NEW JERSEY (counties of Monmouth, Middlesex, Hunterdon, Somerset, Union, Essex, Passaic, Hudson, Bergen, "Another consideration which prompted us Morris, Sussex, and Warren) (2,361,695). to take this step at this time is the fact that under the amended law we will not only retain NEW YORK (10,460,182). all of our charter rights as a State bank and DISTRICT NO. 3—PHILADELPHIA (6,632,611). trust company granted under the laws of the State of Louisiana, but, in addition we will DELAWARE (215,160). NEW JERSEY (except counties enumerated under District now enjoy all of the privileges and facilities No. 2) (652,499). which membership in the Federal Reserve System affords. PENNSYLVANIA (eastern part) (5,764,952). Counties: "Among the most important of these added Adams. Delaware. Montour. privileges and facilities is the right to redis- Bedford. Elk. Northampton. count and the consequent ability to obtain Berks. Franklin. Northumberland Blair. Fulton. Perry. whatever amount of currency may be needed Bradford. Huntingdon. Philadelphia. at any time. Of course this access to the re- Bucks. Juniata. Pike. sources of the Federal Reserve System is not Cambria. Lackawanna. Potter. very important under ordinary conditions, but Cameron. Lancaster. Schuylkill. it becomes of inestimable value to even the Carbon. Lebanon. Snyder. Center. Lehigh. Sullivan. strongest bank in times of financial stress. Chester. Luzerne. Susquehanna. "Moreover, New Orleans is rapidly becom- Clearfield. Ly coming. Tioga. ing a commercial and financial center of the Clinton. McKean. Union. first magnitude, and we believe that as mem- Columbia. Mifflin. Wayne. Cumberland. Monroe. Wyoming. bers of the Federal Reserve System we will be Dauphin. Montgomery. York. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

SEPTEMBER 1, 1917. FEDERAL RESERVE BULLETIN. 669 DISTRICT NO. 4—CLEVELAND (9,314,762). MISSISSIPPI (southern part) (996,935). Counties: KENTUCKY (eastern part) (1,039,880). Counties: Adams. Jackson. Newtoa. Bath. Harlan. Mason. Amite. Jasper. Pearl River. Bell. Harrison. Menifeo. Claiborne. Jefferson. Perry. Boone. Jackson. Montgomery Clarke. Jefferson Davis. Pike. Bourbon. Jessamine. Morgan. Copiah. Jones. Rankin. Boyd. Johnson. Nicholas. Covington. Kemper. Scott. Bracken. Kenton. Owsley. Forrest. Lamar. Sharkey. Breathitt. Knott. Pendleton. Franklin. Lauderdale. Simpson. Campbell. Knox. Perry. George. Lawrence. Smith. Carter. Laurel. Pike. Greene. Leake. Walthall. Clark. Lawrence. Powell. Hancock. Lincoln. Warren. Clay. Lee. Pulaski. Harrison. Madison. Wayne. Elliott. Leslie. Robertson. Hinds. Marion. Wilkinson. Estill. Letcher. Itockcastle. Issaquena. Neshoba. Yazoo. Fayette. Lewis. Rowan. TENNESSEE (eastern part) (1,622,250). Counties: Fleming. Lincoln. Scott. Floyd. McCreary. Whitley. Anderson. Hancock. Perry. Garrard. Madison. Wolfe. Bedford. Hawkins. Pickett. Grant. Magoflin. Woodford. Bledsoe. Hickman. Polk. Greenup. Martin. Blount. Houston. Putnam. OHIO (5,212,085). Bradley. Humphreys. Rhea. PENNSYLVANIA (western part) (2,895,090). Counties: Campbell. Jackson. Roane. Cannon. James. Robertson. Alleghany. Fayette. Somerset. Carter. Jefferson. Rutherford. Armstrong. Forest. Venango. Cheatham. Johnson. Scott. Beaver. Greene. Warren. Claiborne. Knox. Sequatchie. Butler. Indiana. Washington. Clay. Lawrence. Sevier. Clarion. Jefferson. Westmoreland. Cocke. Lewis. Smith. Crawford. Lawrence. Coffee. Lincoln. Stewart. Erie. Mercer. Cumberland. Loudon. Sullivan. Davidson. McMinn. Sumner. WEST VIRGINIA (northern part) (167,707). Counties: Dekalb. Macon. Trousdale. Brooke. Marshall. Tyler. Dickson. Marion. Unicoi. Hancock. Ohio. Wetzel. Fen tress. Marshall. Union. Franklin. Maury. Van Buren. DISTRICT NO. 5—RICHMOND (9,278*461). Giles. Meigs. Warren. Grainger. Monroe. Washington DISTRICT OF COLUMBIA (369,282). Greene. Montgomery. Wayne. MARYLAND (1,373,673). Grundy. Moore. White. NORTH CAROLINA (2,434,381). Hamblen. Morgan. Williamson. Hamilton. Overton. Wilson. SOUTH CAROLINA (1,643,205). VIRGINIA (2,213,025). DISTRICT NO. 7—CHICAGO (14,154,175). WEST VIRGINIA (all counties except Brooke, Hancock, Marshall, Ohio, Tyler, and Wetzel) (1,244,895). ILLINOIS (northern part) (4,977,386). Counties: DISTRICT NO. 6—ATLANTA (10,055,640). Boone. Henry. Mercer. Bureau. Iroquois. Moultrie. ALABAMA (2,363,939). Carroll. Jo Daviess. Ogle. FLORIDA (916,185). Cass. Kane. Peoria. GEORGIA (2,895,841). Champaign. Kankakee. Piatt. LOUISIANA (southern part) (1,260,490). Parishes: Christian. Kendall. Putnam. Clark. Knox. Rock Island Acadia. Jefferson Davis. St. John the Baptist. Coles. Lake. Sangamon. Allen. Lafayette. St. Landry. Cook. La Salle. Schuyler. Ascension. Lafourche. St. Martin. Cumberland. Lee. Shelby. Assumption. Livingston. St. Mary. Dekalb. Livingston. Stark. Avoyelles. Orleans. St. Tammany. Dowitt. Logan. Stephenson. Calcasieu. Plaquemines. Tangipahoa. Douglas. McDonough. Tazewell. Cameron. Pointe Coupee. Terrebonne. Dupage. McHenry. Vermilion. East Baton Rouge. Rapides. Vermilion. Edgar. McLean. Warren. East Feliciana. St. Bernard. Vernon. Ford. Macon. Whiteside. Evangeline. St. Charles. Washington. Fulton. Marshall. Will. Iberville. St. Helena. West Baton Rouge. Grundy. Mason. Winnebago. Iberia. St. James. West Feliciana. Hancock. Menard. Woodford. Jefferson. Henderson. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

670 FEDERAL RESERVE BULLETIN. SEPTEMBER 1,1917. INDIANA (northern part) (2,227,340). Counties: DISTRICT NO. 8—ST. LOUIS (9,291,698). Adams. Hendricks. Parke. ARKANSAS (1,766,343). xillen. Henry. Porter. Bartholomew. Howard. Pulaski. ILLINOIS (southernpart) (1,257,609). Counties: Benton. Huntington. Putnam. Adams. Hardin. Pike. Blackford. Jasper. Randolph. Alexander. Jackson. Pope. Boone. Jay. Ripley. Bond. Jasper. Pulaski. Brown. Jennings. Rush. Brown. Jefferson. •Randolph. Carroll. Johnson. St. Joseph. Calhoun. Jersey. Richland. Cass. Kosciusko. Shelby. Clay. Johnson. St. Clair. Clay. Lagrange. Starke. Clinton. Lawrence. Saline. Clinton. Lake. Steuben. Crawford. Macoupin. Scott. Dearborn. Laporte. Tippecanoe. Edwards. Madison. Union. Decatur. Madison. Tipton. Eflingham. Marion. Wabash. Dekalb. Marion. Union. Fayette. Massac, Washington. Delaware. Marshall. Vermilion. Franklin. Monroe. Wayne. Elkhart. Miami. Vigo. Gallatin. Montgomery. White. Fayette. Monroe. Wabash. Greene. Morgan. Williamson. Fountain. Montgomery. Warren. Hamilton. Perry. Franklin. Morgan. Wayne. Fulton. Newton. Wells. INDIANA (southernpart) (608,152). Counties: Grant. Noble. White. Clark. Jackson. Posey. Hamilton. Ohio. Whitley. Crawford. Jefferson. Scott. Hancock. Owen. Daviess. Knox. Sullivan. Dubois- Lawrence. Spencer. IOWA (2,224,771). Floyd. Martin. Switzerland. MICHIGAN (southern part) (2,721,733). Counties: Gibson. Orange. Vanderburg. Greene. Perry. Warrick. Alcona. Hillsdale. Montmorency. Harrison. Pike. Washington. Allegan. Huron. Muskegon. Alpena. Ingham. Newaygo. KENTUCKY (western part) (1,354,213) Counties: Antrim. Ionia. Oakland. Adair. Gallatin. Metcalfe. Arenac. Iosco. Oceana. Allen. Graves. Monroe. Barry. Isabella. Ogenaw. Anderson. Grayson. Muhlenberg. Bay. Jackson. Osceola. Ballard. Greene. Nelson. Benzie. Kalamazoo. Oscoda. Barren. Hancock. Ohio. Berrien. Kalkaska. Otsego. Boyle. Hardin. Oldham. Branch. Kent. Ottawa. Breckenridge. Hart. Owen. Calhoun. Lake. Presque Isle. Bullitt. Henderson. Russell. Cass. Lapeer. Roscommon. Butler. Henry. Shelby. Charlevoix, Leelanau. Saginaw. Caldwell. Hickman. Simpson. Cheboygan. Lenawee. St. Clair. Calloway. Hopkins. Spencer. Claire. Livingston. St. Joseph. Carlisle. Jefferson. Taylor. Clinton. Macomb. Sanilac. Carroll. Larue. Todd. Crawford. Manistee. Shiawasee. Casey. Livingston. Trigg. Eaton. Mason. Tuscola. Christian. Logan. Trimble. Emmet. Mecosta. Van Buren. Clinton. Lyon. Union. Genesee. Midland. Washtenaw. Crittenden. McCracken. Warren. Gladwin. Missaukee. Wayne. Cumberland. McLean. Washington. Grand Traverse. Monroe. Wexford. Daviess. Marion. Wayne. Gratiot. Montcalm. Edmonson. Marshall. Webster. Franklin. Meade. WISCONSIN (southern part) (2,002,945). Counties: Fulton. Mercer. Adams. Jefferson. Portage. Brown. Juneau. Racine. MISSISSIPPI (northern part) (979,635). Counties: Calumet. Kenosha. Richland. Alcorn. Itawamba. Quitman. Clark. Kewaunee. Rock. Attala. Lafayette. Sunflower. Columbia. Lafayette. Sauk. Benton. Lee. Tallahatchie. Crawford. Langlade. Shawano. Bolivar. Leflore. Tato. Dane. Manitowoc. Sheboygan. Calhoun. Lowndes. Tippah. Dodge. Marathon. Vernon. Carroll. Marshall. Tishomingo. Door. Marinette. Walworth. Chickasaw. Monroe. Tunica. Fond du Lac. Marquette. Washington. Choctaw. Montgomery. Union. Grant. Milwaukee. Waukesha. Clay. Noxubee. Washington. Green. Monroe. Waupaca. Ooahoma. Oktibbeha. Webster. Green Lake. Oconto. Waushara. De Soto. Panola. Winston. Iowa. Outagamie. Winnebago. Grenada. Pontotoc. Yalobusha. Jackson. Ozaukee. Wood. Holmes. Prentiss. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

SEPTEMBER 1,1917. FEDEEAL EESERVE BULLETIN. 671 MISSOURI (eastern part) (2,643,367). Counties: All ex- Ellis. Lincoln. Payne. cept those included in District No. 10. Garfield. Logan. Pottawatomie Garvin. Love. Pittsburg. TENNESSEE (western part) (682,379). Counties: Grant. McClain. Pontotoc. Bcnton. Gibson. Lauderdale. Grady. Mclntosh. Rogers. Carroll. Hardeman. McNairy. Greer. Major. Roger Mills. Chester. Hardin. Madison. Harper. Mayes. Seminole. Crockett. Hay wood. Obion. Harmon. Muskogee. Sequoyah. Decatur. Henderson. Shelby. Baskell. Murray. Stephens. Dyer. Henry. Tipton. Hughes. Noble. Texas. Fayette. Lake. Wcakley. Jackson. Nowata. Tulsa. Jefferson. Okfuskee. Tillman. DISTRICT NO. 9—MINNEAPOLIS (5,164,426). Kay. Oklahoma. Washita. Kingfisher. Okmulgee. Wagoner. MICHIGAN (northern part) (372,533). Counties: Kiowa. Osage. Washington. Latimer. Ottawa. Woods. Alger. Gogebic. Mackinac. Le Flore. Pawnee. Woodward. Baraga. Houghton. Marquette. Chippewa. Iron. Menominee. WYOMING (184,970). Delta. Keweenaw. Ontonagon. Dickinson. Luce. Schoolcraft. DISTRICT NO. 11—DALLAS (5,637,290). MINNESOTA (2,312,445). ARIZONA (southeastern part) (120,828). Counties: MONTANA (472,935). NORTH DAKOTA (765.319). Cochise. Graham. Greenlee. Pima. Santa Cruz. SOUTH DAKOTA (716,972). WISCONSIN (northern part) (524,222). Counties: LOUISIANA (northern part) (596,464). Parishes: Ashland. Florence. Price. Bienville. East Carroll. Ouachita. Barron. Forest. Rusk. Bossier. Franklin. Red River. Bayfield. Iron. St. Croix. Beauregard. Grant. Richland. Buffalo. La Crosse. Sawyer. Caddo. Jackson. Sabine. Burnett. Lincoln. Taylor. Caldwell. La Salle. Tensas. Chippewa. Oneida. Trempcaleau Catahoula. Lincoln. Union. Douglas. Pepin. Vilas. Claiborne. Madison. Webster. Dunn. Pierce. Washburn. Concordia. Morehouse. West Carroll. Eau Claire. Polk. De Sota. Natchitoches. Winn. DISTRICT NO. 10—KANSAS CITY (7,404,443). NEW MEXICO (southern part) (227,209). Counties: Bernalillo. Guadalupe. Sierra. COLORADO (988,320). Chaves. Lincoln. Soeorro. Curry. Luna. Torrance. KANSAS (1,851,870). Dona Ana. Otero. Valencia. MISSOURI (western part) (786,228). Counties: Eddy. Quay. Grant. Roosevelt. Andrew. Clinton. McDonald. Atchison. Dekalb. Newton. OKLAHOMA (southeastern part) (177,366). Counties: Barton. Gentry. Nodaway. Bates. Holt. Flatto. Atotea. Coal. Marshall. Buchanan. Jackson. Vernon. Bryan. Johnston. Pushmataha. Cass. Jasper. Worth. Choctaw. McCurtain. Clay. TEXAS (4,515,423). NEBRASKA (1,284,126). DISTRICT NO. 12—SAN FRANCISCO (6,631,164). NEW MEXICO (northern part) (196,440). Counties: Colfax. Sandoval. Taos. ARIZONA (northwestern part) (142,960). Counties: McKinley. San Juan. Union. Apache. Maricopa. Pinal. Mora. San Miguel. Coconino. Mohave. Yavapai. Rio Arriba. Santa Fe. Gila. Navajo. Yuma. OKLAHOMA (all except southeastern part) (2,112,489). Counties: CALIFORNIA (3,029,032). Adair. Canadian. Cimarron. IDAHO (445,176). Alfalfa. Carter. Cleveland. NEVADA (110,738). Beaver. Comanche. Craig. OREGON (861,992). Blaine. Cotton. Creek. UTAH (443,866). Beckham. Custer. Delaware. Caddo. Cherokee. Dewey. WASHINGTON (1,597,400). 7830—17 4 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

672 FEDERAL EESERVE BULLETIN. SEPTEMBER 1,1917. Export License System. parture of such vessel from the port, and it shall thereupon be unlawful for such vessel to depart. Whoever, in viola- Further revision of the export license list tion of any of the provisions of this section, shall take, or and development of the forms used in con- attempt to take, or authorize the taking of any such vessel nection with the granting of such licenses has out of port or from the jurisdiction of the United States shall be fined not more than §10,000 or imprisoned for not occurred during the past month. Because of more than two years, or both; and, in addition, such vessel, its importance to bankers engaged in foreign her tackle, apparel, furniture, equipment, and her foroperations and desirous of ascertaining that bidden cargo shall be forfeited to the United States. each set of documents presented to them is Now, therefore, I, Woodrow Wilson, President of the complete, details concerning the changes in United States of America, do hereby proclaim to all whom it may concern that the public safety requires that, except the license system during the month of August at such time or times, and under such regulations and are herewith presented. orders, and subject to such limitations and exemptions The President, on August 28, issued the as the President shall prescribe, until otherwise ordered following proclamation, further explaining the by the President or by Congress, the following articles, conditions of the present export embargo: namely: All kinds of arms, guns, ammunition and explosives, machines for their manufacture or repair, component parts thereof, materials or ingredients used in their manu- BY THE PRESIDENT OF THE UNITED STATES OF AMHRICA. facture, and all articles necessary or convenient for their A PROCLAMATION. use; all contrivances for or means of transportation in land Whereas Congress has enacted and the President has, or in the water or air, machines used in their manufacture on the 15th day of June, 1917, approved a law, which con- or repair, component parts thereof, materials or ingretains the following provisions: dients used in their manufacture, and all instruments, " Whenever during the present war the President shall articles and animals necessary or convenient for their find that the public safety shall so require, and shall make use, all means of communication, tools, implements, proclamation thereof, it shall be unlawful to export from instruments, equipment, maps, pictures, papers and other or ship from or take out of the United States to any country articles, machines and documents necessary or convenient named in such proclamation any article or articles men- for carrying on hostile operations, coin, bullion, currency, tioned in such proclamation, except at such time or times, evidences of debt, and metal, materials, dies, plates, and under such regulations and orders, and subject to such machinery and other articles necessary or convenient limitations and exceptions as the President shall prescribe, for their manufacture; all kinds of fuel, food, foodstuffs, until otherwise ordered by the President or by the Con- feed, forage and clothing, and all articles and materials gress: Provided, however, That no preference shall be given used in their manufacture; all chemicals, drugs, dyestuffs, to the ports of one State over those of another. and tanning materials, cotton, wool, silk, flax, hemp, jute, "Any person who shall export, ship, or take out, or sisal, and other fibers and manufactures thereof; all earths, deliver or attempt to deliver for export, shipment, or taking clay, glass, sand and their products, hides, skins and out, any article in violation of this title, or of any regula- manufactures thereof, nonedible animal and vegetable tion or order made hereunder. shall be fined not more than products, machinery, tools and apparatus, medical, $10,000, or, if a natural person, imprisoned for not more surgical, laboratory, and sanitary supplies and equipment; than two years, or both; and any article so delivered or all metals, minerals, mineral oils, ores, and all derivatives exported, shipped, or taken out, or so attempted to be de- and manufactures thereof: paper pulp, books, printed livered or exported, shipped, or taken out, shall be seized matter, rubber, gums, rosins, tars and waxes, their prodand forfeited to the United States; and any officer, director, ucts, derivatives and substitutes, and all articles containor agent of a corporation who participates in any such viola- ing them; wood and wood manufactures; coffee, cocoa, tion shall be liable to like fine or imprisonment, or both. tea, and spices; wines, spirits, mineral waters and bev- "Whenever there is reasonable cause to believe that erages, shall not, on and after the 30th day of August, any vessel, domestic or foreign, is about to carry out of in the year 1917, be exported from or shipped from or the United States any article or articles in violation of the taken out of the United States or its territorial possessions provisions of this title, the collector of customs for the to Albania, Austria-Hungary, that portion of Belgium occudistrict in which such vessel is located is hereby authorized pied by the military forces of Germany, Bulgaria, Denmark, and empowered, subject to review by the Secretary of her colonies, possessions or protectorates; Germany, her Commerce, to refuse clearance to any such vessel, domestic colonies, possessions, or protectorates: Greece, Leichtenor foreign, for which clearance is required by law, and by stein, Luxemburg, the kingdom of the Netherlands, formal notice served upon the owners, master, or person or Norway, Spain, her colonies, possessions, or protectorates; persons in command or charge of any domestic vessel for Sweden, Switzerland, or Turkey (excluding any portion which clearance is not required by law, to forbid the de- of the foregoing occupied by the military forces of the Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

SEPTEMBER 1,1917. FEDERAL RESERVE BULLETIN. 673 United States or the nations associated with the United machinery and the accessories thereof; steam boilers, States in the war), or any territory occupied by the military turbines, condensers, pumps and accessories thereof; all forces of Germany or her allies; and electrical equipment, crucibles, emery, emery wheels, I do hereby further proclaim to all whom it may concern carborundum and all artificial abrasives, copper, includthat the public safety requires that, except at such time ing copper ingots, bars, rods, plates, sheets, tubes, wire or times, and under such regulations and orders, and and scrap thereof; lead and white lead, tin, tin plate, subject to such limitations and exceptions as the Presi- tin cans, and all articles containing tin, nickel, aluminum, dent shall prescribe, until otherwise ordered by the zinc, plumbago, and platinum; news paper, print paper, President or by Congress, the following articles, namely, wood pulp and cellulose; ash, spruce, walnut, mahogany, coal, coke, fuel oils, lubricating oils, hand-lantern oil, oak, and birch woods, and industrial diamonds—shall not, naphtha, benzine, red oil, kerosene, and gasoline, all on and after the 30th day of August, in the year 1917, bunkers, food grains, flour and meal therefrom, corn be exported from, shipped from, or taken out of the fiour, barley, rice flour, rice, oatmeal and rolled oats, United States or its territorial possessions to Abyssinia, fodder and feeds, oil-cake, oil-meal cake, malt, and pea- Afghanistan, Argentina, that portion of Belgium not nuts; all meats and fats, poultry, cottonseed oil, corn oil, occupied by the military forces of Germany or the colocopra, desiccated cocoanuts, butter, fresh, dried, and nies, possessions, or protectorates of Belgium, Bolivia, canned fish; edible or inedible grease of animal or vege- Brazil, China, Chile, Colombia, Costa Rica, Cuba, Dotable origin; linseed oil, lard, tinned milk, peanut oil and minican Republic, Ecuador, Egypt, France, her colonies, butter, grapeseed oil, tallow, tallow candles, and stearic possessions, or protectorates; Guatemala, Haiti, Honduacid; sugar, glucose, sirup, and molasses; pig iron, ferrosili- ras, Italy, her colonies, possessions, or protectorates; con and spiegeleisen; steel ingots, billets, blooms, slabs, Great Britain, her colonies, possessions, or protectorates; and sheet bars; iron and steel plates, including ship, boiler, Japan, Liberia, Mexico, Monaco, Montenegro, Morocco, tank, and all other iron and steel plates one-eighth of Nepal, Nicaragua, the colonies, possessions, or protecan inch thick and heavier, and wider than 6 inches; torates of the Netherlands; Oman, Panama, Paraguay. iron and steel structural shapes, including beams, chan- Persia, Peru, Portugal, her colonies, possessions, or pronels, angles, tees, and zees of all sizes; fabricated struc- tectorates; Roumania, Russia, Salvador, San Marino, tural iron and steel, including beams, channels, angles, Serbia, Siam, Uruguay, Venezuela (excluding any portees, zees, and plates, fabricated and shipped knocked tion of the foregoing occupied by the military forces of down; scrap iron and scrap steel, ferromanganese; tool Germany or her allies), or any territory occupied by the steel, high-speed steel and alloy steels and machine military forces of the United States or by the natiens tools; steel-hardening materials; fertilizers, including associated with the United States in the war. cattle and sheep manure, nitrate of soda, poudrette, The regulations, orders, limitations, and exceptions potato manure, potassium salts, land plaster, potash, prescribed will be administered by and under the aucyanamide, phosphoric acid, phosphate rock, super- thority of the exports administrative board, from whom phosphate, chlorate of potash, bone meal, bone flour, licenses in conformity with said regulations, orders, ground bone, dried blood, ammonia and ammonia salts, limitations, and exceptions will issue. acid phosphates, guano, humus, hardwood ashes, soo-fe, In witness whereof I have hereunto set my hand and anhydrous ammonia; aeronautical machines and instru- caused the seal of the United States of America to be ments, their parts and accessories thereof; arms and affixed. ammunition, all explosives, nitrate of potash, rosin, Done at the city of Washington this 27th day of August, saltpeter, turpentine, ether, alcohol, sulphur, sulphuric in the year of our Lord 1917 and of the independence of acid and its salts, acetone, nitric acid and its salts, benzol the United States of America the one hundred and fortyand its derivatives, phenol ''carbolic acid" and its deriv- second. atives, toluol and its derivatives, mercury and its salts, WOODROW WILSON. glycerin, potash and its salts, all cyanides and films; By the President: carrier and other pigeons, antiaircraft instruments, appa- ROBERT LANSING, Secretary of State. ratus, accessories, all radio and wireless apparatus and The following statement is reprinted from its accessories, optical glass, optical instruments and reflectors, cotton and cotton linters, wool, wool rags, | Commerce Reports for August 6: wool and khaki clippings, and wool products; flax, sisal, I Export license is required at present for any article jute, hemp, and all manufactures thereof; hides, skins, | on the following list, which supersedes the list published leather, leather belting, sole and upper leather, leather in Commerce Reports for July 23: boots and shoes, harness and saddles and leather clothing; Coal. soap and soap powders, all engines and motors operated ! Coke. by steam, gas, and electricity, or other motive power, Fuel oils, including lubricating oil; benzol; handand their accessories; metal and wood working machin- lantern oil; toluol; naphtha; benzene; red oil. ery, oil-well casing, oil-well drilling implements and Kerosene and gasoline, including bunkers. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

674 FEDERAL RESERVE BULLETIN". SEPTEMBER 1,1917. Food grains, flour and meal therefrom, including corn Instructions on page 4 should be carefully read before this application flour, barley, rice flour, rice, oatmeal, and rolled oats. is filled in. Answers must be written legibly, or typewritten, if possible. Fodder and feeds, including oil cakes and oil-cake meal; Applicant's Reference No Date ,191 . DIVISION OF EXPORT LICENSES, malt; peanuts. 1435 KStreet NW., Washington, D. C. Meats and fats, including poultry; cottonseed oil; corn hereby apply for license to export oil; copra; coconuts, desiccated; butter; fish, dried, (Quantity.) canned, or fresh; grease, inedible or edible, of animal of (Goods.) or vegetable origin; linseed oil; lard; meats, all varieties; ..Valued at 5. tinned milk; peanut oil and butter; rapeseed oil; tallow; tallow candles; stearic acid. (Consignee.) (Address.) Pig iron. Goods will be ready for shipment ,191 (Signed) Steel billets, including steel sheet bars; steel blooms; By steel slabs. Applicant's address Ship plates and structural shapes, including iron plates; I beams; mild steel plates; rolled steel plates: steel License to be sent to. Address channels; steel angles; mild steel plates, ordinary tank quality; steel beams; steel plates, one-eighth inch thick PLEASE EEAD CAREFULLY BEFORE FILLING IN APPLICATION. THIS WILL or heavier; steel sheets, one-eighth inch thick or heavier, AVOID DELAY. are classified as steel plates; steel tees and zees; structural (a) This form must be filled in in duplicate, and both copies signed by steel shapes; boiler plates; tank plates; steel doors; steel the foreign purchaser or by his duly authorized representative in the car frames; steel towers. United States. Both copies must then be given to a representative of Scrap iron and scrap steel. the Government of destination who has been authorized to indorse orTthis fourth page, applications for goods destined for war purposes Ferromanganese. or directly contributing thereto. One copy bearing this indorsement Fertilizers, including cattle manure, shredded; nitrate will be returned to the applicant or such representative as he may desigof soda; poudrette; potato manure; potassium salts; land nate, and this copy must be filed immediately at Division of Export plaster; potash; cyanamide; phosphoric acid; phosphate Licenses, 1435 K Street NW., Washington, D. C. rock; superphosphate; chlorate potash; bone meal; bone (&) A separate application must be made for each country of destination. flour; ground bone; dried blood; ammonia and ammonia (c) A separate application must be made for each class of goods and for salts; acid phosphates; guano; humus; hardwood ashes; each consignment. If only a portion of the goods covered by a specific soot; sheep manure, pulverized; anhydrous ammonia. license is exported, and the applicant desires to export the balance, another application should be made on application Form D entitled Arms, ammunition, and explosives, including nitrate of " Application for Supplementary Export License." potash; rosin; saltpeter; turpentine; ether; alcohol; (d) The statement in regard to the quantity should be made in definite sulphur; sulphuric acid and its salts; acetone; nitric units of net weight or measure, such as tons (of 2,240 pounds each), acid and its salts; derivatives of benzol; phenol (carbolic pounds, bushels, gallons, etc., and not in such terms as boxes, cases, acid) and its derivatives; derivatives of toluol; mercury sacks, etc. (e) To avoid delays applicants are requested, in ease of further comand its salts; ammonia and its salts; glycerine; potash munication, to refer to their own reference number and date, as well as and its salts; all cyanides. to the reference number of the Division of Export Licenses if known, As already stated, changes in the license and to refer to each application in a separate letter. (f) If the space allowed on page 1 is not sufficient adequately to describe forms have also occurred, the principal forms the goods, a more complete description may be given in an accompanynow in use being the following: ing letter. All documents which an applicant may wish to submit in connection with the application must accompany the application in the APPLICATION FOR EXPORT LICENSE. first instance. This form is to be used only for proposed shipments to countries asso- AFFIDAVIT BY APPLICANT. ciated with the United States in the war, or to the eolonies, possessions, and protectorates of those countries, and only when such shipments I hereby declare that I have been duly authorized to make this appliwill not be licensed unless the goods are destined for war purposes or cation in behalf of the foreign purchaser, and that I have full knowledge will directly contribute thereto. that the statements made in this application are true and correct, and I further declare materials, articles, or parts thereof mentioned herein Application No are destined for actual war purposes or will directly contribute thereto. Disposition (Signed) Date Address. Drawn by Checked by , RECOMMENDATIONS OF REPRESENTATIVE OF THE GOVERNMENT OF DES- License No TINATION. Expiration date (Space above this line for official use only.) (Signed) Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

SEPTEMBER 1, 1917. FEDERAL RESERVE BULLETIN". 675 Accompanying this form are the following of questions: (Goods.) Valued at S.... 1. State name and address of person or firm by whom the material or to stores will be used, and whether engaged on Government work, and (Consignee.) (Address.) if so, of what land and to what extent. Goods will be ready for shipment ,191 2. Is the material indispensable for efficient maintenance or repair If the goods are to be re-exported by consignee, state to what country. work? 3. State the nature and extent of the plant to be maintained, repaired, (Signed) or manufactured and the evidence of urgency. By 4. State the specific purpose for which the material, etc., is required. Applicant's address 5. Why is it impossible to obtain the supply required, either in the country of destination or elsewhere than the United States, or to sub- License to be sent to stitute some other material for that now asked for? Address 6. How long will the supply now asked for last? PLEASE READ CAREFULLY BEFORE FILLING IN APPLICATION. THIS WILL 7. What is your normal consumption for the period mentioned in AVOID DELAY. your reply to No. 6? 8. What stocks, if any, do you now hold of the goods asked for? In (a) A separate application must be made for each country of destinathe case of machinery or plant what spares have you in hand at present? tion. Name all firms in the United States or elsewhere from whom you have (5) A separate application must be made for each class of goods and for obtained the material, articles, or parts thereof in the past. each consignment. If only a portion of the goods covered by a specific 9. Have you any stores or material of the description referred to in license is exported and the applicant desires to export the balance, this application now under indent order or supply from the United another application should be made on application Form D, entitled States, or elsewhere; if so, what is the quantity? When and with what "Application for Supplementary Export License." firm or firms was the order placed? (c) To avoid delays, applicants are requested, in case of further com- 10. Give the name and address of United States manufacturer of the munication, to refer to their own reference number and date as well as to goods referred to in this application. the Division of Export Licenses reference number, if known, and to refer NOTE.—Questions 1,3, 7, and 9 need not be answered if the buyer is a to each application in a separate letter. foreign Government. (d) Responsibility of exporter.—YailwQ on the part of the applicant to take reasonable precaution as to the distribution of goods; or the granting The following form is to be used for shipof an export license based upon the statements contained in this applicaments to allied countries: tion, will not relieve the consignor from any responsibility to which he may be liable for affording aid and comfort to the enemy. (e) Applicants are advised, if possible, to send in their applications at DEPARTMENT OF COMMERCE, least two weeks in advance of the proposed date of ocean shipment, or as BUREAU or FOREIGN AND DOMESTIC COMMERCE, much earlier as possible. Export licenses, however, will not be issued more than 60 days before the proposed date of ocean shipment. Ocean DIVISION OF EXPORT LICENSES. bills of lading must bear date earlier than the expiration date shown on Application Form A-2, the license. If a license expires before a shipment is made and a renewal is desired, the original and duplicate copy of the original license must be This form to be used only for proposed shipments to countries associated returned with an Application Form E, entitled "Application for Rewith the United States in the war, or to the colonies, possessions, or pro newal of Export License." Original and/or renewal applications will tectoratcs of such countries. be considered in the order received. App. No (/) When filled in and signed send this application to the Bureau of Disposition Foreign and Domestic Commerce, Division of Export Licenses, 1435 K Street NW., Washington, I). C, or to any branch of that bureau. Date (Q) Copies of ail application and instruction forms may be secured at Drawn by *. any of the following district offices of the Bureau of Foreign and Domestic Checked by Commerce, Department of Commerce, or from the Division of Export License No Licenses of that bureau, 1435 K Street NW., Washington, D. C: Expiration date New York, Bureau of Foreign and Domestic Commerce, 409 Custom- (Space above this line for official use only.) house. Boston, Bureau of Foreign and Domestic Commerce, 1801 Custom- Instructions on the back of this sheet should be carefully read before house. this application is filled in. Answers must be written legibty, or type Chicago, Bureau of Foreign and Domestic Commerce, 504 Federal written, if possible. Building. St. Louis, Bureau of Foreign and Domestic Commerce, 402 Third APPLICATION FOR ORDINARY EXPORT LICENSE. National Bank Building. Applicant's Reference No Date , 191 New Orleans, Bureau of Foreign and Domestic Commerce, 1020 Hibernia Bank Building. DIVISION OF EXPORT LICENSES, 1435 KStreet NW., Washington, D. C. San Francisco, Bureau of Foreign and Domestic Commerce, 307 Customhouse. hereby apply for license to export Seattle, Bureau of Foreign and Domestic Commerce, 848 Henry (Quantity.) Building. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

676 FEDERAL RESERVE BULLETIN". SEPTEMBER 1,1917. In the case of shipments to other countries the following form has been adopted: Net. Gross. Measure. Full o d f e g s o c o r d ip s t . ion To v t a a l l u e a p f. p o ro . x b i . m p a o t r e t of shipment. DEPARTMENT OF COMMERCE, BUREAU OF FOREIGN AND DOMESTIC COMMERCE. Application Form 9. This form is to be used only for proposed shipments to countries not associated with the United States in the war, or to the colonies, possessions, and protectorates of those countries. This form is not to be used for applications to ship coal, fuel oil, or bunkers. Application No Disposition a Date (Totals.).. . Drawn by Checked by License No 11. Purpose for which goods are to be used Expiration date 12. Name of manufacturers of the goods (Space above this line for official use only.) Point of origin 13. Ifshipped,dateofR. R.B/L Instructions on page 4 should be carefully read before this application If arrived at seaboard, date of arrival is filled in. Answers must be written legibly or typewritten if possible. 14. If not shipped from factory, are goods ready for shipment? Or when will goods be ready? APPLICATION FOR ORDINARY EXPORT LICENSE. 15. Have you a firm order for the goods? Date of order Covering to 16. Were you engaged in exporting goods of this kind to the proposed (Brief description of goods.) (Place and country of ultimate country of destination previous to August, 1914? destination.) 17. State the period during which you have maintained regular business Applicant's reference No Date relations with these purchasers DIVISION OF EXPORT LICENSES, BUREAU OF FOREIGN AND DOMESTIC 18. Is the present order from them a normal one as compared with their COMMERCE, orders previous to August, 1914? Washington, D. C. 19. If a guarantee has been issued in accordance with requirements referred to in paragraph (c) of page 4, give name , hereby apply for a license to export the merchandise named address , and reference below to the consignee, purchaser, and country named below, in accord- number of guarantor ance with the provisions of Title VII of an act of Congress approved 20. What proofs have you that the goods are for consumption by neu- June 15, 1917, entitled "An act to punish acts of interference with the trals or by allies of the United States? foreign relations," etc., having satisfied that said merchandise will not reach the enemy, directly or indirectly, and that neither the consignee nor purchaser are dealing with, or engaged in hereby declare that to the best of knowledge and activities on behalf of, the enemy desirous in belief the foregoing particulars are correctly stated and underorder to expedite an answer to this application that if necessary an take that if this license is granted it shall be used solely for the export investigation be made by cable, the cost of which prepared of goods which are own property, or the property of a person, to bear. firm, or company for whom act in this transaction as the sole responsible representative. (Signed) (Signed) .• Address By By Name Status of signatory Address 1. Consignor. Nationality Year established.. PLEASE READ CAREFULLY BEFORE FILLING IN APPLICATION. THIS WILL Nature of business AVOID DELAY. Name (a) This form must be filled in by the individual, copartnership, or Address corporation (herein called the applicant) making the sale to the for- 2. Consignee. Nationality Year established. eign purchaser. Nature of business (6) The applicant must appear as the consignor on the ocean bill of Name lading. 3. Purchaser abroad, Address (c) When filling in applications for proposed shipments to certain if not consignee. Nationality Year established. specified countries applicants must comply with the special instructions relative to those countries which are given in the following forms Nature of business. issued by the Division of Export Licenses of the Bureau of Foreign 4. Name and address to which t and Domestic Commerce, and obtainable at the several places listed license should be sent. \ under paragraph (o): 5. Name of line and/or/ vessel by which/ Sweden, "Instruction Form Al." shipment will go forward. I Norway, '• Instruction Form A2." 6. Approximate date of intended ocean shipment Denmark, "Instruction Form A3." 7. Port of intended shipment from this country Holland, "Instruction Form A4. " 8. Prospective port of entry abroad Switzerland, "Instruction Form A5." 9. If goods are to be reexported, state to what country.. Greece, " Instruction Form A6." 10. Quantity in tons: Salonika, "Instructioa Form A7." Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

SEPTEMBER 1,1917. FEDEKAL RESERVE BULLETIN. 677 (d) A separate application must be made for each country of desti- (o) Copies of all application and instruction forms may be secured at nation. any of the following district or cooperative o-fices of the Bureau of Foreign (c) A separate application must be made for each class of goods and and Domestic Commerce, Department of Commerce, or from the Divifor each consignment. If only a portion of the goods covered by a sion of Export Licenses of that bureau in Washington, D. C: specific license is exported, and the applicant desires to export the Now York, Bureau of Foreign and Domestic Commerce. 409 Custombalance, another application should be made on Application Form D, house. entitled "Application for Supplementary Export License." Boston, Bureau of Foreign and Domestic Commerce, 1801 Custom- (/) To avoid delays, applicants are requested, in case of further com- house. munication, to refer to their own reference number and date as well Chicago, Bureau of Foreign and Domestic Commerce, 504 Federal as to the Bureau of Foreign and Domestic Commerce reference number, Building. if known, and to refer to each application in a separate letter. St. Louis, Bureau of Foreign and Domestic Commerce, 402 Third (g) All the essential information as to the goods, and the consignee National Bank Building. and purchaser to which the application relates, must be given on the New Orleans, Bureau of Foreign and Domestic Commerce, 1020 Hiform itself, and not on an accompanying letter. Any special reasons in bernia Bank Building. support of an application other than those suggested in the form may be San Francisco, Bureau of Foreign and Domestic Commerce, 307 Cusgiven in a letter accompanying the form. All documents which an tomhouse. applicant may wish to submit in connection with an application must Seattle, Bureau of Foreign and Domestic Commerce, 848 Henry accompany the application in the first instance. The submitting of Building. such documents, however, does not in any way relieve the applicant of his obligations as stated in the form. Commercial Failures Reported. (h) Application for license to ship coal and/or fuel oil, and bunkers, must be made on Application Forms C and B, respectively. Notwithstanding the uncertainties arising (i) Complete description of goods, page 2: 1. Not more than one item should appear on each line. from war conditions and the slowing down of 2. Where number of items exceeds eight (8) or space provided is in- business in some directions, the country's comsufficient for adequate description of goods, a list of same may be attached giving the particulars in exactly the same form as provided in the appli- mercial mortality discloses continued reduccation blank. tion in comparison writh recent years, 777 com- 3. Net and gross weights must be given in tons of 2,240 pounds or mercial failures being reported to R. G. Dun & fractions thereof. Measurement must be in tons of 40 cubic feet or fractions thereof. Measurement need not be given in the case of goods which Co. for three weeks of August, against 901 in arc, by custom, shipped on a weight basis. If unable, on account of the same period of 1916. The statement for the nature of the commodity to express quantity in tons, give quantity in customary units. Description of goods must include number of pack- July—the latest month for which complete ages and contents of each. Values must be in dollars. figures are available—show^s 1,137 defaults for 4. In the case of compound articles the exact composition and proportion of the components must be stated. For example, under question §17,240,424, as compared with 1,207 for 10 might be written (quantity in tons): $11,647,499 in July last year, the increase in amount being due to several insolvencies of Total approximate value unusual size. Numerically, decreases appear Net. Gross. Meas. Full description of goods. f. o. b. port of dispatch. in 8 of the 12 Federal Reserve districts, namely, the first, fourth, sixth, seventh, eighth, ninth, 10 11 8.5 80 boxes white metal tenth, and twelfth, the sixth district making the containing 61 per cent copper, 20 per cent best exhibit, with a falling off of over 30 per nickel, 19 per cent zinc. $15,000 cent. On the other hand, the liabilities were 10 11 8.5 Total 15,000 larger than in July, 1916, in the second, third, The above information will be held as confidential. sixth, seventh, eighth, tenth, and twelfth dis- (j) Responsibility of exporter.—Failure to take reasonable precautions tricts, and notably so in the latter instance. as to the distribution of goods and the granting of an export license based upon the statements contained in this application will not relieve the consignor from any responsibility to which he may be liable for Failures during July. affording aid or comfort to the enemy. (fc) Applications must be signed by the individual applicant, or in Number Liabilities. case of a copartnership, by a member thereof, or in case of a corporation by an officer who is authorized to sign on behalf of the corporation. Districts. (J) When filled in and signed, send this application to the Bureau of 1917 1916 1917 1916 Foreign and Domestic Commerce, Division of Export Licenses, 1435 K Street NW., Washington, D. C, or to any branch of that bureau. First 108 128 §1,061,620 SI309,433 (w) Applicants are advised, if possible, to send in their applications Second.... 224 208 3,752,280 2617,469 at least two weeks in advance of the proposed date of ocean shipment, Third 54 47 658,693 441,739 or as much earlier as possible. Export licenses, however, will not be Fourth... 95 113 1,255,521 1318,999 issued more than 60 days before the proposed date of ocean shipment. Fifth 71 56 542,271 595,200 Ocean bills of lading must bear date earlier than the expiration date S S i e x v t e h nth... 1 8 5 3 4 1 17 2 6 3 2 1 , , 8 6 7 0 8 2 , , 7 3 7 4 5 5 1 1 4 2 7 4 9 6 , , 2 5 0 6 1 5 shown on the license. If a license expires before a shipment is made Eighth.... 67 70 475,182 454,750 and a renewal is desired, the original and duplicate copy of the original Ninth 29 30 165,877 477,600 license must be returned with an Application Form E, entitled "Appli- Tenth 50 59 509,239 339,136 cation for Renewal of Export License." Original and/or renewal appli- Eleventh. 61 50 292,589 463,508 cations will be considered in the order received. Twelfth... 141 147 4,046,032 903,900 («) Appeals from the decisions in regard to applications will not be Total 11,,113377 1207 17,240,424 647,499 considered unless some new facts or considerations are adduced. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

678 FEDERAL RESERVE BULLETIN. SEPTEMBER 1,1917. Fiduciary Powers. national banks during the period from July 28, 1917, to August 24, 1917, inclusive: The applications of the following banks for permission to act under section Ilk of the Banks. Federal Reserve Act have been approved since New charters issued to 19 With capital of $930,000 the issue of the August Bulletin: Increase of capital approved for 10 DISTRICT NO. 1. With new capital of 2,625,000 Trustee, executor, administrator, and registrar of stock Aggregate number of new charters and and bonds: banks increasing capital 29 Manufacturers National Bank, Lynn, Mass. With aggregate of new capital authorized 3,555,000 Trustee, executor, and administrator: Edgartown National Bank, Edgartown, Mass. Number of banks liquidating (other than those consolidating with other national DISTRICT No. 3. banks) 1 Trustee, executor, administrator, and registrar of stocks Capital of same banks 100,000 and bonds: Number of banks reducing capital 0 Myerstown National Bank, Myerstown, Pa. Reduction of capital 0 Total number of banks going into liquida- DISTRICT No. 4. tion or reducing capital (other than those Trustee: consolidating with other national banks).. 1 German National Bank of Allegheny, Pittsburgh, Pa. Aggregate capital reduction 100,000 Registrar of stocks and bonds: First National Bank, Canton, Ohio. The foregoing statement shows the aggregate of increased capital for the period of the banks DISTRICT No. 7. embraced in statement was 3,555,000 Trustee, executor, administrator, and registrar of stocks Against this there was a reduction of capital and bonds: owing to liquidations (other than for con- Capital National Bank, Lansing, Mich. solidation with other national banks) and Trustee, executor, and administrator: reductions of capital of 100,000 Farmers & Merchants National Bank, Benton Harbor, Mich. Net increase 3,455,000 DISTRICT NO. 10. Trustee, executor, administrator, and registrar of stocks and bonds: GOLD SETTLEMENT FUND. First National Bank, Buffalo, Wyo. Trustee, executor, and administrator: First National Bank, Luray, Kans. Since the publication of the statement in the August Bulletin showing the clearings and DISTRICT NO. 11. transfers of the Federal Reserve Banks through Trustee, executor, administrator, and registrar of stocks the gold settlement fund, the aggregate baland bonds: ances in the fund of both the banks and agents Tenison National Bank, Dallas, Texas. have increased $11,895,100, as compared with a total increase since the beginning of the pres- New National Bank Charters. ent calendar year of $318,774,350. The heavy The Comptroller of the Currency reports the transfers shown for the week ending August 2 following increases and reductions in the num- are due to the concentration of Government ber of national banks and the capital of funds in the New York bank, mainly for the Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

SEPTEMBER 1, 1917. FEDERAL RESERVE BULLETIN. 679 purpose of making advances to the representa- Amount of clearings and transfers, Federal Reserve Banks, from July 20 to Aug. 23, 1917, inclusive. tives of the allied Governments. Withdrawals of funds from New York cor- [000 omitted.] respondents by banks in the interior, in order Total Balances to make payment on August 9 to their res- clearings. adjusted. Transferspective Federal Reserve Banks on account Settlement of— of subscriptions to the $300,000,000 issue of July 26,1917 §667,661 852,176 $55,000 Aug. 2,1917 545,256 52,454 144,000 United States certificates of indebtedness, is Aug. 9,1917 428,681 87,566 21,500 Aug. 16, 1917 501,123 48,051 39,500 partly responsible for the large debit balance of Aug. 23,1917 453,484 31,6S1 23,900 $87,566,000 shown for the New York bank in Total... . 2,596,205 271,928 283,900 Previously reported for 1917 10,007,413 860,587 995,044.5 the settlement of August 9. BelowT are given figures showing changes in Total T tr o a t n a s l f s e i r n s ce J a J n a . n . 1 , 1 1 , 9 1 1 9 7 1 , 7 to ... 12,603,618 1,132,515 1,278,944.5 date 1,278,944.5 the fund from July 20 to August 23, 1917, in- Total for 1916, including transfers 5,633,966 clusive. Changes in the ownership of gold in Total for 1915, including transfers 1,052,649 the fund amounted to only 1.76 per cent of the Total clearings and transfers May 20,1915, to Aug. 23,1917. 20,569,177.5 obligations settled. Changes in ownership of gold. |000 omitted.] Total changes Total to July 19,1917. From July 19 to Aug. 23,1917, inclusive, i from May 20,1915, to Aug. 23,1917.a Balance to Federal Reserve Bank of— credit July 19,1917, Balance, Decrease. Increase. plus net Aug. 23, Decrease. Increase. Decrease. Increase. deposits of 1917. gold since that date. Boston.. §46,993 821,165 $17,553 §3,612 $43,381 New York.... 8493,938 80,540 117,840 §37,300 $456,638 Philadelphia... 83,211 34,483 26,867 7,616 75,595 Cleveland 80,688 54,140.6 54,346.6 206 80,874 Richmond 18,108 24,151.1 31,163.1 7,012 25,180 Atlanta.. 23,326 5,955 3,523 2,432 20,894 Chicago.. 53,290 74,324 47,(566 26,658 26,632 St. Louis. 12,218 25,214 25,678 464 12,682 Minneapolis... 14,000 12,597 7 871 4,726 9,274 Kansas City... 48,143.5 36,382.65 38,259.65 "1,*877 50,020.5 Dallas... 30,821.5 12,732 7.135 "o,"597" 25,224.5 San Francisco. 83,099 17,469 2li251 86,881 Total. 493,938 493,938 399,153.35 399,153.35 50,641 50,641 456,038 456,638.0 id £es in ownership of gold during period July 19 to August 23, 1917, equal 1.76 per cent of obligations settled, 2 TO changes in ownership of gold since May 20,1915, equal 2.22 per cent of obligations settled. Gold-settlement fund—Summary of transactions from July 20 to Aug. 23, 1917, inclusive. [000 omitted.J Balance Gold. Transfers. Weekly settlements from July 20 to Aug. 23, Aug. 23, last 1917. 1917, state- f"— balance Federal reserve bank of— ment, in fund Ju 1 l 9 y 1 7. 19, d W ra i w th n - . D i e te p d o . s- Debit. Credit. de N b e i t ts. d T e o b t i a ts l . c T re o d t i a t l s. Net cl a o f s t e e r of business. Boston.... fH'ina $10,000 $36,000 8194,806 8227,194 832,388 $17,553 N Ph e i w la d Y e o lp rk hia l} 1 < 5 ? , , 9 7 7 9 2 0 §3 2 8 , , 2 0 5 0 0 0 2 2 0, ,7 7 5 6 0 1 3 4 2 3 ,9 0 0 0 0 0 : : §245,500 $19 4 3 , , 7 1 5 0 1 0 9 27 3 8 6 , , 6 1 3 9 9 5 7 31 6 4 0 , , 0 8 2 9 3 5 4 1 0 7 , ,8 1 0 3 0 5 1 2 1 6 7 , , 8 8 6 4 7 0 10,450 6,982 55,500 '•• 190,695 I 246,401 55,706 54,346.6 9,000 8,052.1 '30,000 : 18,000 22,772 125,838 144,850 41,784 31,163.1 2,460 1,725 1,900 ! 6,063 59,184 54,852 1,731 3,523 16,520 24,758 49,500 ; 12,855 361,360 384,202 35,697 St. Louis 1,820 1,450 5,000 12,539 158,752 154,216 8,003 25,678 2,000 5,350 2, 500 5,253 48,254 45,028 2,027 7,871 3,274 15, 139 93,949 110,826 17,016 38,259.65 Dallas 10,260 3,358 8, 3,719 42,109 44,512 6,122 7,135 San Francisco 19,859 2,500 110 12, 13,000 10,737 106,424 109,206 13,519 21,251 Total ;396,469.25 ! 85,886 88,570.1 283,900 '283,900 2 7.1,9 2,596,205 2,596,205 271,928 1399,153.35 7830—17 5 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

680 FEDERAL RESERVE BULLETIN. SEPTEMBER 1,1917, Federal Reserve Agents' Fund—Summary of transactions from July 20 to Aug. 23, 1917. [000 omitted.] ! Balance Balance last state- Gold Gold Balance ! last state- Gold Gold Balance Federal Reserve Agent at— Ju m l e v n 1 t 9 , , d w ra i w th n - . d i e te p d o . s- Au 19 g 17 . . 23,; j Federal Reserve Agent at— J m ul e y n 1 t 9 , , d w ra i w th n - . d i e te p d o . s - j A 1 u 9 g 1 . 7 2 . 3, 1917. 1917. Boston $2,000 ! $2,000 Minneapolis S6,250 $2,000 S4,250 Philadelphia.. 26,940 i §1,361 25,579 ; Kansas City.... 11,060 11,060 Cleveland 20,000 ! 20,000 ! Dallas 3,060 3,456 S500 i 704 Richmond 7,000 500 SI,000 7,500 | San Francisco.. 25.160 700 2,500 | 26,990 Atlanta 13,580 1,000 2,460 Chicago 56,210 672 11,520 Total | 182,730 10,389 19,600 ! 191,941 St. Louis 10,840 700 1,620 ll',760 | I Operations of the Federal Reserve Clearing System, July 16 to Aug. 15, 1917. Items drawn on banks Items drawn on banks in Federal Reserve in district outside Items drawn on banks city (daily aver- Federal Reserve in other districts city (daily average). (daily average). Number. | Amount. Number. Amount. Number. Amount. Boston 2,228 39,926,486 34,107 §4,056,756 2,787 65,383,530 New York 4,646 38,452,543 32,199 7,290,652 13,703 9,381,085 Philadelphia 12,629 12,202,102 19,081 2,527,832 7,839 8,348,116 Cleveland 1,165 3,448,020 15,155 8,745,096 883 2,430,252 Richmond 1,031 2,530,303 12,833 4,407,479 1,552 3,232,975 Atlanta 1,094 956,009 8,460 1,577,915 1,290 1,333,887 Chicago 6,580 14,709,032 12,771 2,997,940 1,287 712,999 St. Louis 1,636 4,820,182 1,641,198 220 2,314,050 Minneapolis 2,073 3,923,480 9,639 846,403 641 645,467 Kansas City 1,836 3,839,332 8,950 1,937,383 570 3,274,671 Dallas 883 1,106,769 8,896 2,889,799 322 600,442 San Francisco 2,161,661 5,465 1,434,825 179 323,548 Totals: July 16 to Aug. 15,1917 36,727 98,075,919 175,625 40,353,278 31,273 37,981,022 June 16 to July 15,1917 38,476 109,722,256 182,622 41,004,720 33,941 46,762,698 May 16 to June 15,1917 37,898 97,322,883 179,193 38,599,461 33,150 38.314,393 Apr. 16 to May 15,1917 33,767 87,370,859 171,093 36,473,163 33,428 36,836,934 Mar. 16 to Apr. 15,1917 31,162 60,288,002 168,607 32,666,959 32,008 34,693,542 Feb. 16 to Mar. 15,1917 Jan. 16 to Feb. 15,1937 Dec. 16,1916, to Jan. 15, 1917. Nov. 16 to Dec. 15, 1916 Oct. 16 to Nov. 15,' 1916 Sept. 16 to Oct. 15,1916.. Aug. 16 to Sept. 15, 1916. July 15 to Aug. 15,1916.. Total (exclusive of Items drawn on items drawn on Treasurer of Number Number Treasurer of United United States of mem- of non- States) (daily aver- (daily average). ber member age). banks in banks on district. par list. Number. Amount. Number. Amount. Boston '. 39,122 §19,366,772 1,438 §928,801 394 248 New York 50,548 55,124,280 9,697 2,950,631 629 342 Philadelphia 39,549 23,078,050 1,359 1,589,792 632 251 Cleveland 17,203 14,623,368 220 61,384 753 542 Richmond 15,416 10,170,757 230 60,071 519 269 Atlanta 10,844 3,867,811 521 223,446 380 352 Chicago 20,638 18,419,971 2,454 590,039 ] 1,051 1,943 St. Louis 9,925 8,775,430 2,218 422,022 | 471 968 Minneapolis 12,353 5,415,350 158 47,089 ! 742 1,012 Kansas City 11,356 9,051,386 985 601,000 i 948 1,518 Dallas 10,101 4,597,010 17 4,297 630 217 San Francisco 6,570 3,920,034 236 2,222,997 534 1,175 Totals: July 16 to Aug. 15,1917 243,625 176,410,219 19,533 9,701,569 7,683 8,837 June 16 to July 15,1917 255,039 197,489,674 19,100 11,637,899 7,666 8,805 May 16 to June 15,1917 250,241 174,236,737 16,344 4,414,508 7,651 8,789 Apr. 16 to May 15,1917 238,288 160,680,956 15,925 3,597,865 7,634 8,926 Mar. 16 to Apr. 15,1917 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. 16 to Feb. 15,1917 220,421 110,188,028 7,630 8,086 Dec. 16,1916, to Jan. 15,1917. 241,933 121,814,589 7,622 8,130 N O o ct v . . 1 1 6 6 t o te N D o e v c . . 1 1 5 5 , t 1 1 9 9 1 1 6 6 2 2 3 2 6 7 , , 0 4 3 8 8 9 1 1 2 1 5 5 , , 6 0 0 61 3 , , 2 7 2 3 4 2 7 7 , , 6 6 2 2 7 3 8 8 , , 0 0 6 5 5 9 Sept. 16 to Oct. 15,1916 204,891 97,666,107 7,618 7,459 Aug. 16 to Sept. 15,1916 177,397 78,559,704 7,618 7,449 July 15 to Aug. 15,1916 133,113 59,301,696 7,624 7,032 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

SEPTBMBEK 1, 1917. FEDERAL RESERVE BULLETIN. 681 COMPARATIVE STATEMENT OF LEADING chiefly those immediately preceding the out- BANKS OF ISSUE, 1914 AND 1917. break of the war, while for 1917 the dates of In continuation of similar figures printed on the latest reports on hand were taken. page 658 of the November, 1916, Bulletin there No changes were made in the methods of presare presented below comparative statements entation. It is thus possible to make fair comshowing the condition of the Federal Reserve parisons between the 1914, 1916, and 1917 fig- Banks treated as a whole, and of the leading ures and to trace the effect of the war on the central banks of issue in 1914 and 1917. For condition of the central banks in both the the earlier year the report dates chosen are belligerent and neutral countries. Comparative statement shovjing principal assets and liabilities of the leading central banks of issue, at dates specified. [In thousands of dollars; i. e., 000 omitted.] Federal Reserve Banks. Bank of England. Bank of France. Russian State Bank. Dec. 31, July 27, July 29, Julv 25, July 30, July 12, July 16/29, June 16/29, 1914. 1917. 1914. 1917. 1914. 1917. 1914. 1917. ASSETS. S G i o lv ld e r e a o n in d a o n th d e b r u m lli e o ta n llic reserve 2 1 4 7 1 , , 8 3 2 2 3 1 1,30 1 9 4 , , 7 39 6 7 3 } 185,567 258,550 / \ 1 7 2 9 0 9 , , 6 2 8 7 9 9 6 5 2 0 8 , , 6 9 1 1 6 6 8 3 2 7 5 , , 4 8 8 8 7 4 7 6 6 6 2 , , 4 6 5 7 3 6 Total metallic vault reserve 259,144 1,324,160 185,567 258,550 919,968 679,532 863,371 829,129 G Fo o r l e d i g h n e ld c r a e b d r i o t a s d ... 52,500 3 1 9 4 2 2 , , 7 93 1 8 2 | 72,471 1,091,601 Government securities: Bonds, consols, etc..... 205 41,135 f 41,019 40,944 83,860 Short-term securities 35,818 1 143,343 324,000 \ 963 515,311 5,249,565 Other Government securities 8,755 37,392 1 38,600 2,103,700 Total 8,960 114,345 143,343 324,000 80,582 2,659,955 5,333,426 Notes of other banks of issue 4,624 13,403 ! Loans and discounts 9,909 305,131 23*6,222 541,960 471,746 331,220 220,932 256,525 Advances on bullion and specie, securities, 146,443 223,602 179,273 691,393 Securities 734 1,469 53,075 133,334 Sundry assets 9,237 210,229 77,173 169,246 109,931 292,810 Total 292,608 2,021,237 559,132 1,124,510 1,695,912 4,539,205 1,499,053 8,628,217 LIABILITIES. Capital paid in 18,051 57,825 70,822 70,822 35,222 35,222 28,325 28,325 Ifl QQ9 1(3 1 If" q 909 Government deposits. H3,032 61,869 226,850 73*, 834 13,518 264,937 114,825 Other deposits.. 263,948 1,281,818 264,830 617,267 182,881 477,954 327,585 1,445,527 Bank notes in circulation . . ... 10,000 536,474 184,566 193,377 1,289,885 3,896,923 841,174 6,484,876 Sundry liabilities 2,088 53 78 105,914 107,296 37,032 554,664 Total 292,608 2,021,237 559,132 1,124,510 1,695,912 4,539,205 1,499,053 8,628,217 Bank of Italy. German Reichsbank. Bank of Netherlands. Riksbank, Sweden. Dec. 31, June 20, July 31, June 15, July 25, July 21, July 31, June 30, 1914. 191.7. 1914. 1917. 1914. 1917. 1914. 1917. ASSETS. G Si o lv ld e r c a oi n n d a o n th d e b r u m lli e o t n al lic . r . e .. serve } 236,633 / \ 1 1 6 2 1 , , 7 05 5 9 2 2 6 9 5 8 , , 4 2 0 6 9 1 6 1 0 1 2 , , 8 9 5 3 9 8 6 3 5 , , 3 1 0 4 7 0 24 2 9 , , 9 72 4 6 3 24 1, , 4 7 0 4 8 6 54,3 9 2 0 4 8 Total metallic vault reserve 236,633 173,811 363,670 614,797 68,477 252,669 26,154 55,232 Gold held abroad Foreign credits 8,195 89,766 13,564 5,879 Government securities: Bonds, consols, etc Short-term securities 105,865 1 464,926 7,960 125,533 5,003 3,674 o7,332 24,429 Other Government securities Total 105,865 6 464,926 7,960 125,533 5,003 3,674 a 7,332 24,429 a Includes both Government and corporate securities. & Including S4,003,000 of foreign treasury bills. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

682 FEDERAL RESERVE BULLETIN. SEPTEMBEK 1,1917. Comparative statement showing principal assets and liabilities of the leading central banks of issue, at dates specified—Con. [In thousands of dollars; i. e., 000 omitted.] Bank of Italy. German Reichsbank. Bank of Netherlands. Riksbank, Sweden. Dec. 31, June 20, July 31, June 15, July 25, July 21, July 31, July 30, 1914. 1917. 1914. 1917. 1914. 1917. 1914. 1917. ASSETS—continued. Notes of other banks of issue a 5,416 j 6 10,658 2,740 1,229 c 1,893 Loans and discounts 180,297 j 693,803 495,296 2,254,860 35,430 23,181 42,303 56,141 Advances on bullion and specie, securities, merchandise, etc 29,180 72,044 48,121 2,427 24,798 30,978 11*027 Securities 39,486 42,504 94,392 23,783 3,612 3,664 1,525 Sundry assets 28,618 i 42,393 51,901 256,599 928 24,974 813 25,080 Total : 633,690 j 1,589,905 1,064,081 138,248 339,140 92,059 179,313 LIABILITIES. I Capital paid in 34,740 46,320 42,840 42,840 8,040 8,040 11,900 13,400 Surplus 13,515 14,752 17,726 21,453 2,011 2,104 2,975 4,539 G O o th v e e r r n d m ep e o n s t i t d s eposits 1 4 1 0 8 , , 3 0 2 3 0 5 5 4 5 3 8 , , 2 9 3 0 8 2 299,515 1,146,278 1,904 21,186 18,440 31,111 Bank notes in circulation 417,352 816,096 692,442 1,957,318 124,796 305,531 54,367 124,894 Sundry liabilities 9,728 110,597 11,558 111,339 1,497 | 2,279 4,377 5,369 Total 633,690 ! 1,589,905 1,064,081 3,279,228 138,248 i 339,140 92,059 179,313 Norges w B a a y n . k, Nor- Na m p t e i a o n r n h k a a . l g e B n a , nk D , C en o - - Bank of Spain. Swis B s a N n a k t . ional Bank of Japan. July 31, July 23, July 31, June 30, July 24, June 23, July 23, June 30, June 30, July 7, 1914. 1917. 1914. 1917. 1914. 1917. 1914. 1917. 1914. 19l7. S G i o lv ld e r c a o n in d a o n t d h e b r u m lli e o t n allic reserve.. 14,405 34,815 24,410 53,356 1 1 0 4 5 3 , , 7 0 9 6 8 3 2 1 9 4 7 6 , , 6 1 4 0 4 1 3 3 4 , , 6 7 5 5 6 3 6 1 5 0 , , 7 0 1 5 2 3 110,189 258,757 Total metallic vault reserve 14,405 24,410 53,356 248,861 443,745 38,409 75,765 110,521 258,757 Gold held abroad Foreign credits 8,166 d22,994 11,996 17,513 69,858 Government securities: Bonds, consols, etc 67,047 66,476 25,164 17,339 Short-term securities 2,399 c3,431 Other Government securities. 29,199 *48,"250' 1,120 "i6*956" Total. 2,399 96,246 114,726 1,120 36,120 28,515 Notes of other banks of issue 2,307 Loans and discounts 23,690 73,917 27,098 41,278 152,579 80,033 18,099 38,811 39,242 76,061 Advances on bullion and specie, securities, merchandise, etc 3,106 69,120 2,699 3,032 16,647 Securities 11,456 2,249 2,446 1,490 9,775 Sundry assets 9,627 9,365 5,594 11,530 26,664 204,488 Total 66,548 J 736,752 67,247 131,748 299,052 577,596 LIABILITIES. Capital paid in 28,950 4,825 4,825 18,675 18,675 Surplus 199 5,018 471 568 14,290 18,551 G O o th v e e r r n d m ep e o n s t i t d s eposits 3,859 38,548 5,496 19,442 153', 432 28,819 19,854 6 5 9 , , 7 2 1 3 4 0 2 1 5 0 4 , , 9 5 1 8 3 5 Bank notes in circulation. 32,859 78,594 39,525 82,239 373,557 474,304 83,176 104,250 180,411 274,854 Sundry liabilities 12,092 31,145 2,606 2,246 10,732 18 Total. 66,548 736,752 67,247 131,748 299,052 577,596 a Includes $1,737,000 of foreign bank notes. d Including foreign bills. h Including 81,130,000 of foreign bank notes, e Including foreign government securities. c Included foreign bank notes, also drafts and bills payable at sight. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

SEPTEMBER 1, 1917. FEDERAL RESERVE BULLETIN. 683 COURSE OF DOLLAR AND STERLING EX- rates chosen were those for cable transfers. CHANGE SINCE 1914. Index numbers with mint or par rates as their bases were figured and plotted so as to present As pointed out on page 582 of the August the movement of rates along uniform and com- Federal Reserve Bulletin, the American dollar, parable lines. The percentages above and beas well as the pound sterling, is at a discount in low 100 measure the degree of appreciation or all neutral European countries. This condidepreciation of the dollar or pound sterling tion is not, however, of recent origin. As may in terms of the respective foreign currencies. be seen from subjoined tables and attached A comparison of dollar and sterling rates diagrams, the downward course of dollar and brings out the fact mentioned in the earlier sterling exchange began not long after the out- Bulletin, that, particularly since measures break of the war, though owing to the closing have been taken to stabilize sterling exchange of the London and New York Stock Exchanges on New York at about the present rates, New quotations of exchange during the first year of York and London rates of exchange on neutral the war were irregular at best, and in some places practically run a parallel course, dollar cases entirely lacking. This is true of New exchange rates in nearly all cases showing less York exchange on the Scandinavian, Swiss, and depreciation than the corresponding London Spanish markets. rates. In order to eliminate the differences in distance and time required for remittance, the Comparative rates for cable transfers to principal neutral places in Europe based upon quotations in New York and London since July, 1914, as reported by the National City Bank of New York City and the London Economist. Amsterdam. Christiania. Stockholm. New York, par London, par New York, par London, par New York, par London, par 2.488. 12.107. 3.731. 18.159. 3.731. 18.159. Rate. c P e e n r t. Rate. c P e e n r t. Rate. c P e e n r t. Rate. c P e e n r t. Rate. c P e e n r t. Rate. c P e e n r t. 1914. Oct 20 - 2.410 96.87 Oct. 27 2.454 98.63 Nov. 10 2.439 98.03 Nov. 17 2.447 98.35 Nov 24 2.454 98.63 Dec. 1 2.454 98.63 12.04 99.45 ! 19.30 iO6.28 19.30 106.28 Dec 8 2.454 98.63 11.99 99.00 1 19.37 106.67 19.37 106 67 Doc. 15 2.454 98.63 12.01 99.20 I 19.37 108.67 19.37 106.67 Dec 22 . .. 2.462 98.95 12.00 99.12 19.4.0 106.83 19.40 106.83 Dec. 29 2.462 98.95 12.02 99.28 19.35 106.56 19.35 106.56 1915. 2.469 99.24 12.005 99.16 19.38 106.72 19.38 106.72 Jan 12 2.484 99.84 12.045 99.49 19.37 106.67 19.37 106.67 Jan. 19 2.488 100.00 12.06 99.62 19.45 107.11 19.45 107.11 Jan. 26 2.481 99.72 12.057 99.59 i 19.45 107.11 19.45 107.11 Feb 2 2.481 99.72 12.05 99.53 • 19.47 107.22 19.47 1fi7 9.9, Feb. 9 2.477 99.56 11.99 99.00 19.fiO 107.93 19.60 ' 107.93 Feb. 16 2.500 100. 48 12.03 99.37 19.65 108. 21 19.65 i 108.21 Feb. 23 2.496 100.32 12.015 99.24 19.68 1 108.38 19.68 108.38 Mar. 2.. . 2.500 100.48 12.055 99.57 19.75 10S.7fi 19.75 108.76 Mar. 9 2.500 100.48 12.07 99.70 19.80 109.04 . .. .19.80 109.04 Mar. 16 2.508 100.80 12.095 99.90 19.60 107.93 19.60 107.93 Mar. 23. 2.524 • 101.45 12.14 100.28 19.48 107.27 19.48 107.27 Mar. 30 2.520 101.29 12.15 100.36 19.00 104.H3 19.00 104.63 Apr. 6 2.528 101.61 i Apr. 13 . . 2.528 101.61 12-21 100.85 18.70 102.98 18.70 102.08 Apr. 20 2.508 100. 80 12.18 100.61 19.00 104.63 19.00 ! 104.63 Apr. 27 . . 2.535 101.89 12.175 100.56 '; IS. 70 102.98 18.70 i 102.08 May 4 2.528 101.61 12.14 100.28 18.60 102.43 . : 18.60 1 102.43 May 11 2.531 101.73 i 12.14 100.28 18.55 102.15 : 18.55 i 102.15 May 18 2.528 101.61 ! 12.115 100.07 18.525 102.02 18.525 i 102.02 Mav25 2.528 101.61 12.12 100.11 18.45 101.60 .. . i 18.45 101.60 Jure 1 2.528 101.61 12.02 99.28 18.30 100.78 ! is. ?,n inn.78 June 8 2.500 100.48 12.00 99.12 18.20 100. 23 18.20 100.23 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

684 FEDERAL RESERVE BULLETIN". SEPTEMBER 1,1917. Comparative rates for cable transfers to principal neutral places in Europe based upon quotations in New York and London since July, 1914, as reported by the National City Bank of New York City and the London Economist—Continued. Amsterdam. Christiania. Stockholm. New York, par London, par New York, par London, par New York, par London, par 2.488. 12.107. 3.731. 3.731. 18.159. Rate. c P e e n r t. Rate. c P en er t. Rate. c P e e n r t. Rate. c P en er t. Rate. c P en er t. Rate. c P en er t. 1915. Juno 15.. 2.504 100.64 11.97 98.87 18.15 99.95 18.15 99.95 June 22.. 2.500 100.48 11.93 98.54 18.20 100.23 18.20 100.23 June 29.. 2.500 100.48 11.94 98.62 18.30 100.78 18.30 100.78 July 6... 2.500 100.48 11.96 98.79 18.275 100.64 18.275 100.64 July 13.. 2.492 100.16 11.94 18.55 102.15 18.55 102.15 July 20.. 2.492 100.16 11.84 97.80 18.75 103.26 18.75 103.26 July 27.. 2.481 99.72 11.87 98.05 18.55 102.15 18.55 102.15 Aug. 3... 2.484 99.84 Aug. 10.. 2.469 99.24 11.75 97.05 18.40 101.33 18.40 101.33 Aug. 17.. 2.504 100.64 Aug. 24.. 2.484 99.84 11.65 96.23 3.846 103.08 18.20 100.23 3.846 103.08 18.20 "i66."23 Aug. 31.. 2.508 100.80 104.50 3.899 104.50 Sept. 7... 2.477 99.56 11.57 95.57 3.876 103.89 18.25 100.50 3.876 103.89 18.25 100.50 Sept. 14.. 2.48 11.55 95.40 3.876 103.89 18.20 100.23 3.876 103.89 18.20 100.23 Sept. 21.. 2.469 99.24 11.58 95.65 3.828 102.60 18.20 100.23 102.60 18.20 100.23 Sept. 28.. 2.46 11.60 95.82 3.86 103.46 18.25 100.50 103.46 18.25 100.60 Oct. 5... 2.454 98.63 11.57 95.57 3.809 102.09 18.20 100.23 3.809 102.69 18.20 100.23 Oct. 12.. 11.45 94.58 18.10 99.68 18.10 99.68 Oct. 19.. 2.424 97.43 11.46 94.66 3.828 102.60 18.05 99.40 102.60 18.05 99.40 Oct. 26.. 2.432 97.75 11.28 93.17 102.60 17.95 98.85 3.828 102.60 17.95 98.85 Nov. 2... 2.41 96.87 11.17 92.26 3.77 101.05 17.70 97.47 3.77 101.05 17.70 97.47 Nov. 9... 2.374 95.42 11.08 91.52 3.766 100.94 17.50 96.37 3.766 100.94 17.50 96.37 Nov. 16.. 2.388 95.98 11.24 92.84 3.738 100.19 17.60 96.92 3.738 100.19 17.60 96.92 Nov. 23.. 2.38 11.22 92.68 3.636 97.45 97.45 Nov. 30.. 2.38 95.66 11.27 93.09 3.478 93.22 3.478 93.22 , Dec. 7... 2.38 95.66 11.20 92.51 3.51 94.08 3.51 94.08 ! Dec. 14.. 2.339 94.01 11.00 3.67 98.37 3.67 98.37 •: Dec. 21.. 2.312 92.93 10.96 90.53 3.704 99.28 3.704 99. 28 Dec.28.. 2.299 92.40 10.88 89.87 3.54 94.89 3.54 94.89 1916. Jan. 4... 2.273 91.36 10.63 87.80 3.556 95.31 3.556 95.31 Jan. 11.. 2.228 89.55 10.61 87.64 3.571 95.71 3.556 95.31 Jan.18.. 2.247 90.31 10.68 88.22 3.604 96.60 3.596 96.38 Jan.25.. 2.286 91.88 10.91 90.12 3.636 97.45 3.604 96.60 Feb. 1... 2.36 94.86 11.27 93.09 3.643 97.64 3.63 97.29 I Feb. 8... 2.374 $5.42 11.32 93.50 3.578 95.90 3.566 95.58 j Feb. 15.. 94.86 11.31 93.42 3.525 94.48 3.525 94.48 Feb. 22.. 11.20 92.51 Feb. 29.. 2.339 94.01 11.25 92.92 3.552 95.20 3.54 94.89 Mar. 7... 2.353 94.57 11.30 93.34 3.534 94.72 3.521 94.37 Mar. 14.. 2.36 94.86 11.31 93.42 3.501 93.84 3.478 93.22 Mar. 21.. 2.3153 94.57 11.28 93.17 3.454 92.57 3.434 92.04 Mar. 28.. 2.342 94.13 11.20 92.51 3.464 92.84 3.448 92.41 ! Apr. 4... 2.333 93.77 11.15 92.10 3.419 91.64 3.407 91.32 I Apr. 11.. 2.339 94.01 11.25 92.92 3.328 89.20 3.32 88.99 i Apr. 18.. 2.353 94.57 11.32 93.50 3.376 90.49 3.367 90.24 i Apr. 25.. 2.364 95.02 3.339 89.49 3.328 89.20 May2... 2.384 95.82 3.279 87.89 3.266 87.54 May 9... 2.432 97.75 11.60 95.82 3.239 86.81 3.23 86.57 May 16.. 2.406 96.70 11.52 95.15 3.213 86.12 3.188 85.45 May 23.. 2.399 96.42 11.52 95.15 3.284 88.02 87.54 May 30.. 11.50 94.99 J J u u n n e e 1 6 3 .. . . . 2 2. . 3 4 8 0 8 2 9 9 6 5 . . 5 9 4 8 1 1 1 1 . . 4 4 7 1 9 9 4 4 . . 7 2 4 5 3 3 . . 3 33 0 3 6 . 8 8 9 8 . . 3 6 3 1 15.85 ! 87.28 3 3. . 3 2 3 9 9 3 | I 8 8 8 9. . 4 2 9 6 i ! 15.85 87.28 June 29.. 2.403 96.58 11.49 94.91 3.39 90.87 3.384 I 90.70 i June 27.. 2.406 96.70 11.52 95.15 3.396 91.02 3.378 i 90.54 July4... 11.50 94.99 A A J J A A S S J A u u u e e u u u u u l l l p p g g g g g y y y . t t . . . . . . 1 2 1 1 2 2 8 1 1 5 1 5 8 5 2 9 . 2 . . . . . . . . . . . . . . . . . . . . 2 2 2 2 2 2 2 2 2 2 , . . . . . . . . . 4 4 4 4 4 3 4 4 4 4 0 0 3 1 0 0 1 9 5 2 6 6 9 7 6 6 3 5 1 9 9 9 9 9 9 9 9 9 9 6 6 6 6 6 6 8 7 8 7 . . . . . . . . . . 7 9 2 7 7 7 4 1 0 3 0 9 6 0 0 0 8 5 3 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 . . . . . . . . . . 5 5 4 5 7 7 7 5 5 5 4 4 9 6 0 0 7 3 5 1 5 9 9 9 9 9 9 9 9 9 9 4 6 6 5 5 5 7 5 5 5 . . . . . . . . . . 6 6 2 3 0 3 2 4 9 4 4 4 4 2 7 2 2 0 5 8 3 3 3 3 3 3 3 3 3 3 . . . . . . . . . . 4 5 4 4 4 5 4 5 5 6 3 6 7 7 7 2 9 0 2 1 4 6 2 2 7 1 9 7 9 9 9 9 9 9 9 9 9 9 2 6 4 3 3 3 4 4 4 3 . . . . . . . . . . 9 7 7 0 0 3 5 0 0 7 0 6 2 6 6 7 3 5 1 3 1 1 1 1 1 6 6 6 6 6 . . . . . 6 6 8 8 65 0 5 5 5 I i ! : • 9 9 9 9 9 2 2 1 1 1 . . . . . 7 7 6 6 4 9 9 9 9 1 3 3 3 3 3 3 3 3 3 3 . . . . . . . . . . 5 4 4 5 4 4 4 4 4 5 3 7 6 7 9 9 6 7 7 2 4 2 7 7 6 2 2 1 9 9 9 9 9 9 9 9 9 9 3 2 3 3 4 4 2 3 6 3 . . . . . . . . . . 7 0 9 0 0 7 3 0 7 4 4 6 0 6 6 2 7 1 3 1 I ; j : : i i i i . . . . . 1 1 1 1 1 6 6 6 6 6 . . . . . 6 8 6 6 8 0 5 5 5 5 9 9 9 9 9 2 2 1 1 1 . . . . . 7 7 6 6 4 9 9 9 9 1 2.443 98.20 11.69 96.56 3.59 96.22 3.509 94.05 !. Sept. 26. 2.447 11.685 96.51 3.59 96.22 3.497 93.73 •". Oct. 3... 2.447 98.36 11.67 96.39 3.59 96.22 3.521 94.37 . O O c c t t . . 1 1 7 0 . . . . 2 2 . . 4 43 4 9 3 98.20 1 1 1 1 . . 6 6 8 3 9 9 6 6 . . 0 4 6 8 3 3. .5 59 84 9 9 6 6 . . 0 2 6 2 3 3 . . 4 51 9 5 6 9 9 3 4 . . 7 2 0 1 ! ! . . Oct. 24.. 2.432 97.75 11.61 95.90 3.59 96.22 3.509 94.05 i. Oct. 31.. 2.439 98.03 11.63 96.06 3.59 96.22 3.50 93.81 !. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

SEPTEMBER 1, 1917. FEDERAL RESERVE BULLETIN. 686 Comparative rates for cable transfers to principal neutral places in Europe based upon quotations in New York and London since July, 1914, as reported by the National City Bank of New York City and the London Economist—Continued. Amsterdam. Christiania. Stockholm. New York, par London, par New York, par London, par New York, par London, yar 2.488. 12.M7. 3.731. 18.159. 3.731. 18.159. I Rate. c P en er t. Rate. c P en er t. Rate. c P en er t. Rate. c P en er t. K •« a tte - i i ce P n e t r . Rate. c P e e n r t. I 1916. | Nov. 7 11.65 96.23 Nov. 14 2.443 98.20 11.65 96.23 3.60 96.49 3.51 94.08 Nov. 21 . 2.443 98.20 11.68 96.48 3.61 96.76 3.527 94.53 Nov. 28 2.45 98.48 11.70 96.64 3.617 96.94 3.527 94.23 Dec. 5 2.447 98.36 11.69 96.56 3.59 96.22 3.49 93.54 Dec 12 2.447 98.36 11.67 96.39 3.534 94.72 3.396 91.02 Dec. 19 . 2.443 98.20 11.69 96.56 3. 559 95.39 3.413 91.48 Dec. 26... 2.447 98.36 3.578 95.90 3.384 90.70 1917. Jan. 2 2.447 98.36 3.559 95.39 3.373 90.40 Jan. 9 2.443 98.20 11.70 96,64 3.5»9 95.39 3.373 90.40 Jan. 16. 2.447 98.36 11.70 96.64 3.571 95.71 3.395 90.99 Jan. 23 2.447 98.36 11.70 96.64 3.559 95.39 3.384 90.70 Jan. 30. . 2.45 98.48 11.71 96.72 3.565 95.55 3.378 90.54 Feb 6 2.454 98.64 11.70 96.64 S.565 95.55 3.373 90.40 Feb. 13 2.454 98.64 11.73 96.89 3.571 95.71 3.384 90.70 Feb. 29. 2.465 99.08 11.77 Q7.22 3.559 95.39 3.378 90.54 Feb. 27 2.473 99.40 11.82 i 07. fiS 3.559 95.39 3.373 90.40 Mar. 6 . 2.473 99.40 11.82 97.63 3.534 94.72 3.373 90.40 Mar. 13 2.481 99.72 11.85 97.88 3.497 93.73 3.378 90.54 Mar. 20 2.477 99.56 11.82 97.63 3.436 92.09 3.367 90.24 Mar. 27 2.469 99.24 11.79 97.38 3.378 90.54 3.356 89.95 Apr. 3 2.462 98.96 11.76 97.14 3.378 90.54 3.311 88.74 Apr. 10. . .. 2.454 98.64 11.75 97.05 3.344 89.63 3.322 89.04 Apr. 17 2.424 97.43 11.62 OS. QR 3.356 89.95 3.279 87.89 xVpr. 24. ... . . .. 2.439 98.03 11.68 i flfi. 48 3.419 91.64 3.378 90.54 May 1 2.435 97.87 11.64 96.15 3.413 91.48 3.344 89.63 May 8 2.439 98.03 11.65 96.23 3.401 91.16 3.333 89.33 May 15 2.435 97.87 11.54 95.32 3.407 91.32 16.24 89.43 3.333 89.33 15.83 87.17 May 22 2.417 97.15 3.384 90.70 3.333 89.33 May 29 2.424 97 43 3.401 91.16 3.322 89.04 June 5 2.421 97.31 11.54 95.32 3.39 90.87 16.24 89.43 3.317 88.90 15.88 87.45 June 12 2.417 97.15 11.54 95.32 3.401 91.16 16.25 89.49 3.317 88.90 15.87 87.38 June 19. 2.424 97.43 11.56 95.48 3.401 91.16 16.25 89.49 3.311 88.74 15.77 86.84 June 26 2.402 96.54 11.54 95.32 3.39 90.87 16.23 89.38 3.289 88.15 15.67 86.29 July 3. . 2 424 97.43 3.39 90.87 3.268 87.59 JulvlO 2.417 97.15 11.55 95.40 3.279 87.89 16.05 • 88.39 3.175 85.10 15.20 83.71 July 17 . 2.421 97.31 11.55 95.40 3.373 90.40 16.15 88.94 3.195 85.63 15.30 84.26 July24... . 2.417 97.15 11.54 95.32 3.350 89.79 16.03 88.28 3.14 84.16 14.95 82.33 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

686 FEDERAL RESERVE BULLETIN. SEPTBMBEK 1,1917. Comparative rates for cable transfers to principal neutral places in Europe based upon quotations in New York and London since July, 1914, as reported by the National City Bank of New York City and the London Economist—Continued. Copenhagen. Zurich. ! Madrid. i New York, par London, par New York, par London, par New York, par London, par 3.731. 18.159. 5.18. 25.225. 5.18. 25.225. Rate. c P e e n r t. Rate. c P e e n r t. Rate. c P e e n r t. Rate. c P e e n r t. Rate. c P e e n r t. Rate. c P e e n r t. 1914. Dec. 1 19.30 106.28 25.55 101.29 25.90 102.68 Dec. 8 19.37 106.67 25.55 101.29 26.00 103.08 Dec. 15 . 19.37 1Q6.67 25.52 101.17 26.00 103.08 Dec. 22. . 19.40 106.83 25.50 101.09 25.85 102.48 Dec. 29 19.35 106.56 25.55 101.29 25.20 99.90 1915. Jan. 5 . 19.38 106.72 25.55 101.29 25.45 100.89 Jan.12 . .... ( 19.37 106.67 25.55 • 101.29 25.25 100.10 Jan. 19 19.45 107.11 25.65 101.68 25.45 100.89 Jan. 26 . 19.45 107.11 25.70 101.88 25.23 100.02 Feb.2 19.47 107.22 25.70 101.88 25.225 100.00 Feb. 9 19.60 107.93 25.85 102.48 25.15 99.70 Feb.16. 19.65 108.21 26.30 104.27 25.00 99.11 Feb.23 19.68 108.38 26.50 105.06 24.90 98.71 Mar.2.. 19.75 108.76 26.40 104.66 24.75 98.12 Mar.9 19.80 109.04 26.10 103.47 24.30 96.33 Mar. 16 19.60 107.93 26.10 103.47 24.50 97.13 Mar.23 19.48 107.27 26.90 106.64 24.40 96.73 Mar. 30 19.00 104.63 25.90 102.68 24.20 95.94 Apr.13 18.70 102.98 25.80 102.28 24.05 95.34 Apr. 20 19.00 104.63 25.70 101.88 24.25 96.13 Apr. 27 18.70 102.98 25.60 101.49 24.25 96.13 May 4 18.60 102.43 25.55 101.29 24.60 97.52 Mayll 18 55 102.15 25.50 101.09 24.80 98.31 May 18 18.525 102.02 25.45 100.89 24.95 98.91 May 25 18.45 101.60 25.425 100.79 25.20 99.90 June 1 18.30 100.78 25.325 100.40 25.10 99.50 June 8 18.20 100.23 25.275 100.20 25.20 99.90 June 15 18.15 99.95 25.35 100.50 25.30 100.30 June 22 18.20 100.23 25.625 101.59 25.55 101.29 June 29 18.30 100.78 26.00 103.07 25.80 102.28 July 6 18.275 100.64 25.90 102.68 25.95 102.88 Julyl3 18.55 102.15 25.80 102.28 25.25 100.10 July 20 18.75 103.26 25.55 101.29 25.15 99.70 July27.... 18.55 102.15 25.70 101.88 25.15 99.70 Aug. 10 18.40 101.33 25.50 101 09 24.90 98.71 Aug. 24. . 3.846 103.08 18.20 100.23 5.34 103.09 25.15 99 70 5 263 101.60 24.90 98.71 Aug. 31 3.899 104.50 5.42 104.64 5.305 102.41 Sept. 7 3.876 103.89 18.25 100.50 5.33 102.90 25.20 99.90 5.305 102.41 24.95 98.91 Sept. 14 3.876 103.89 18.20 100. 23 5.29 102.12 24.90 98.71 5.263 101.60 24.90 98.71 Sept. 21 . .. 3.828 102.60 18.20 100.23 5.28 101.93 25.00 99.11 5.195 100.29 24.80 98.31 Sept. 28 3.86 103.46 18.25 100.50 5.27 101.74 25.00 99.11 5.23 100.97 24.85 98.51 Oct. 5 3.809 102.09 18.20 100.23 5.26 101.55 25.00 99.11 5.195 100.29 24.80 98.31 Oct. 12 18 10 99.68 25.00 99.11 24.93 98.83 Oct. 19 3.828 102.60 18 05 99.40 5.29 102.12 24.97 98.99 5.263 101.60 24.90 98.71 Oct. 26 3.828 102.60 17.95 98. 85 5.35 103.29 24.95 98.91 5.33 102.90 24.87 98.59 Nov. 2.. 3.81 102.12 17.70 97.47 5.32 102.71 24.85 98.51 5.29 102.12 24.95 98.91 Nov. 9 3.78 101.32 17.50 96.37 5.31 102.51 24.77 98.20 5.23 100.97 25.00 99.11 Nov. 16 3.756 100 67 17 60 96.92 5.335 102.99 25.15 99.70 5.23 100.97 25.15 99.70 Nov. 23 3.636 97.45 5.32 102. 71 25.15 99.70 5.263 101.60 25.22 99.98 Nov. 30 3.54 94.89 5.32 102.71 25.30 100.30 5.23 100.97 25.15 99.70 Dec.7 3.51 94.08 5.31 102.51 25.25 100.10 5.23 100.97 25.18 99.82 Dec. 14 3.72 99.71 5.31 102.51 25.10 99.50 5.23 100.97 25.10 99.50 Dec.21 3.738 100.19 5.26 101.55 24.95 98.91 5.23 100.97 25.16 99.74 Dec. 28 3.571 95.71 5.25 101.36 24.95 98.91 5.23 100.97 25.10 99.50 1916. Jan. 4 3.571 95.71 5.20 100.39 34.90 98.71 5.263 101.60 25.03 99.23 Jan. 11 3.588 96.17 5.12 98.84 24.70 97.92 5.236 101.08 25.10 99.50 Jan. 18 3.62 97 03 5.15 99.42 24.65 97.72 5.195 100.29 25.08 99.43 Jan. 25 3.663 98 18 5.155 99.52 24.70 97.92 5.249 101.33 25.12 99.58 Feb.l 3.663 98 18 5.175 99.90 24.85 98.51 5.249 101.33 25.12 99.58 Feb. 8...: 3.61 96.76 5.20 100.39 24.90 98.71 5.249 101.33 25.14 99.66 Feb.15 3.54 94.89 5.225 100.87 25.00 99.11 5.249 101.33 25.12 99.58 Feb. 22 25 03 99 23 25.11 99.54 Feb. 29 3.552 95.20 5.23 100.97 25.05 99.31 5.163 99.67 25.11 99.54 Mar. 7 3.559 95.39 5.233 101.02 25.05 99.31 5.23 100.97 25.08 99.43 Mar. 14 3.525 94.48 5.22 100.78 25.05 99.31 5.195 100.29 24.95 98.91 Mar.21 3.464 92.84 5.215 100.68 25.00 99.11 5.195 100.29 25.00 99.11 Mar. 28 3.478 93.22 5.21 100.58 24 94 98 87 5.195 100.29 24.80 98.31 Apr. 4 3.434 92.04 5.203 100 44 94 on 98.71 5.128 99.00 24.82 98.39 Apr. 11 3.339 89.49 5.18 100.00 | 24.75 98.12 5.096 98.38 24.70 97.92 Apr. IS 3.384 90.70 5.175 99.90 i 24.82 98.39 5.128 99.00 24.60 97.52 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

SEPT13J.T13EH 1, 1917. FEDERAL RESERVE BULLETIN. 687 Comparative rates for cable transfers to principal neutral places in Europe based upon quotations in New York and London since July, 1914, as reported by the National City Bank of Neiv York City and the London Economist—Continued. Copenhagen. Zurich. Madrid. Now Yorlc, par London, par New York, par London, par Now York, par London, par 3.731. 18.159. 5.18. " 25.225. 5.18. 25.225. Rate. ce P n er t. Roto. c F e o n r t. Rate. c P en er t. "Rate, c P e e n r t. Rate. c P e e n r t. Rule. c P en o t r ;. 1916. Anr. 25 3.348 89.73 5.175 99.90 5.063 97.74 \?ay 2 3 306 88 6' 5 18 100 00 5 038 97 26 A 5" ay 9 3.266 87.54 5.195 100.29 24.85 98.51 5.038 97.26 24.18 95.86 Voy 16 3 239 86.81 5 197 100.33 24.90 98.71 5.076 97.99 24.22 96.02 May 23 3.293 88.26 5.235 101.06 25.05 99.31 5.025 97.01 24.00 95.14 Mav 30 24.95 98.91 24.00 95.14 June 6 3.32 88.99 15.85 87.28 5.24 101.16 25.03 99.23 4.878 94.17 23.50 93.16 June 13 3 356 89.95 5 235 101.06 25.03 99.23 4.958 95.71 23.72 94.03 Juno 20 3.401 91.16 5.253 101.41 25.10 99.50 4.938 95.33 23.35 92.57 June 27 3.413 91.48 5.271 101.76 25.20 99.90 4.926 95.10 23.55 93.36 Ji>]y & 25.25 100 10 23.45 92.96 July 11 3.54 94.89 5.283 101.99 25.25 100.10 4.95 95.56 23.50 93.16 Jtilv 18 3.534 91. 72 16.85 92.79 5.23 102.12 25.30 100.30 4,938 95.33 23.60 93.56 July 25 3.478 93.22 16.65 91.69 5.275 101.83 25.25 100.10 4.926 95.10 23.55 93.38 Ancr i 3 497 93. 73 16.85 92.79 5.29 102.12 25.25 100.10 4.938 95.33 23.73 94.07 Aug. 8 3.4S-1 93.38 16.60 91.41 5.285 102.03 25.26 100.1.4 4.95 95.56 23.65 93.76 Ausr. 35 3.472 93.06 16.65 91.69 5.287 102.07 25.28 100.22 4.938 95.33 23.75 94.15 Aug 22 3 6?3 97 H 5 285 102 03 25 28 100 22 4 938 95 33 23 65 93 76 4ug ?0 3 636 97 ^5 5 285 102 03 25 27 100 18 4 938 95.33 23 68 93.88 Sept 5 3 656 97 99 5 287 102 07 25 37 100 57 4.938 85.33 23.68 93.88 Popt. 12 3.623 97 11 5.315 102 61 25.50 101.09 4.946 95.48 23.76 94.19 Pent. 19 3.636 97.45 5.325 102.80 25.45 100.89 4.955 95.66 23.75 94.15 Sept 26 3.656 97.99 5.31 102.51 25.38 100.61 4.963 95.81 23.83 94.47 Oct 3 3.636 9? 45 5.311 102 53 25.35 100.50 4.963 95.81 23.75 94.15 Oct 10 3.636 97 45 5.29 102.12 25.20 99.90 4.958 95.71 23.72 94.03 Oot 17 3.663 98.18 5.277 101.87 25.20 99.90 4.953 95.62 23.65 93.76 Oct. 24 3.683 98.18 5.255 101.45 25.13 99.62 4.931 95.19 23.48 93.08 Oct. 31 3.676 98.53 5.245 101.25 25.00 99.11 4.914 94.86 23.50 93.16 N(n~ 7 24.97 98.99 23.35 92.57 Nov. 14 3.69 98.90 5.213 100.64 24.90 98.71 4.90 94.60 23.37 92.65 Nov 21 3.69 98.90 5.16 99.62 24.70 97.92 4.87 94.02 23.28 92.29 Nov. 28 3.697 99.09 5.16 99.62 24.63 97.64 4.843 93.50 23.10 91.58 Dec 5 3.676 98 53 5.165 99.71 24.50 97.13 4.706 90.85 22.12 87.69 Pec 12 3.656 97.99 4.99 95.34 23.65 93.76 4.673 90.21 22.30 88.40 Dec. 19 3.69 98.90 5.01 90.73 24.00 95.14 4.717 91.06 22.80 90.39 Dec 26 . .. 3.683 98 71 5.03 97.11 4.706 90.85 1917. JilTl 2 . . . .. 3.663 98.18 5.06 97.69 4.739 91.49 JaTi 9 3.643 97.64 4.99 96.34 24.05 95.34 4.684 90.42 22.40 88.80 Jaii 16 3.643 97.64 5.02 96.92 24.03 95.26 4.706 90.85 22.40 88.80 Jan. 23 3.617 96.94 5.01 96.73 23.92 94.83 4.684 90.42 22.40 88.80 Tan 30 3 636 97 45 5.005 96.62 23.93 94.87 4.673 90.21 22.43 88.92 •Feb. 0 3.63 97.29 4.99 96.34 23.87 94.63 4.673 90.21 22.45 89.00 f?t*Y> 13 . .. 3.843 97.64 4.99 96.34 23.90 94.75 4.700 90.85 22.63 89.71 Feb. 20 3.043 97.64 5.005 98.62 23.95 94.95 4.701 90.75 22.48 89.12 Pel) 27 . . .. 3.63 97.29 5.005 96.62 23.93 94.87 4.728 91.27 22.58 89.52 3.597 98 41 5.017 66.85 24.13 95.66 4.695 90.64 22.60 89.60 TyfaT" 13 3.509 94.05 5.027 97.05 24.05 95.34 4.695 90.64 22.50 89.20 Var 20 3.442 92 25 5.027 97.05 24.02 95.22 4.684 90.42 22.42 88.88 Af>*r 27 3.44S 92.41 5.03 97.11 24.04 95.30 4.662 90.00 \pr ^ 3.448 92.41 5.033 97.16 24.10 95.54 4.558 87.95 22.15 87.81 Xnr 10 .... 3.468 92.90 5.0S 98.07 24.15 95.74 4.619 89.17 22.20 88.00 \ •V p p r r 1 2 7l 3 3 .4 5 8 0 4 9 9 94 3 .3 0 8 5 5 5. .0 13 75 9 9 9 7 . . 0 9 4 7 2 2 4 4 . . 3 4 0 8 9 9 6 7 . . 3 0 3 5 4 4 . . 6 5 1 8 9 7 8 8 9 8 . . 1 5 7 5 2 2 2 1. . 8 2 3 3 8 86 8 . . 1 5 2 4 Mayl 3.516 95.04 5.14 99.23 24.50 97.13 4.556 87.95 21.75 86.22 MMPaVy 8 15 3 3. 5 5 3 21 4 . 9 9 4 4 .3 7 7 2 16.57 91.25 5 5 . . 1 1 6 1 9 9 9 8 . . 6 6 2 5 2 2 4 4 . . 1 6 8 0 9 9 7 5 . . 5 8 2 8 4 4 . . 5 5 4 3 5 5 8 8 7 7. . 7 5 4 5 2 21 1 . . 5 6 6 3 8 8 5 5 . . 4 7 7 5 •\Tov 22 ? 472 03 06 5.11 9S. 65 4.494 86.76 May 29 3.484 93.38 5.06 97.69 4.415 85.23 JUPO 5 3.478 93.22 "16." 60 " 91.4i" 5.04 97.30 24.05 95.34 4.367 84.31 21.00 83.25 Juno 12 3.466 92.90 16.50 90.86 4.99 96.33 23.75 94.15 4.237 81.80 20.25 80.28 June 19 3.448 92.41 16.45 90.59 4.92 94.99 23.55 93.36 4.255 82.14 20.47 ! 81.15 June 26 - 3.419 91.64 16.45 90.59 4.83 93.25 23.30 92.37 4.211 81.29 20.20 : 80.08 Tvlv 3 3.431 91.96 4.75 91.70 4.255 82.14 Tulv 10 3.401 91.16 16.30 89.76 4.65 89.77 22.40 88.80 4.31 83.21 20.50 81.27 Tu^y 17 3 419 91.64 16.43 90.48 4.61 89.00 22.30 88.40 4.338 83.75 20.75 82.20 July 24 3.401 91.16 16.27 89.60 4.63 89.39 22. Q0 87.22 4.367 84.31 20.80 82.46 7830—17- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

688 FEDERAL RESERVE BULLETIN. R 1, 1917. COURSE OF DOLLAR EXCHANGE (CABLE TRANSFERS) ON PRI NCI PAL EUROPEAN NEUTRAL PLACES 19/4 - 1917 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

SEPTEMBER 1,1917. FEDERAL BESEBVE BULLETIN. 689 COURSE OF STERLING EXCHANGE (CABLE TRANSFERS ) ON PRINCIPAL EUROPEAN NEUTRAL PLACES - /B1F Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

690 FEDERAL BESEEVE BULLETIN'. SEPTEMBEU 1, 1917. INFOK RULINGS OF THE BOARD. Below are reproduced letters sent out from The maturity of the draft need not necessarily time to time over the signatures of the officers approximate the length of time involved in or members of the Federal Reserve Board the shipment in such a case, though it must be limited to a maximum of six months, exclusive which contain information believed to be of of days of grace. general interest to Federal Reserve Banks and AUGUST 24, 1917. member banks of the system: Conversion* of a State Bank into a National Bank. Bankers' Acceptances Drawn Against Shipment of Goods (To a Federal Reserve Bank.) from a Corporation to its Agent. Receipt is acknowledged of your letter of (To an individual.) July 30, relating to the conversion into a Your letter of August 7 relating to the right national bank of the State Bank of of a member bank to accept a draft drawn . It has frequently been held by the against the shipment of goods by a corpora- courts that a State bank"which is converted tion to its agent or branch, was duly received into a national bank "does not destroy its and referred to our counsel for consideration. identity or its corporate existence." The con- In reply you are advised that, in the opinion version results "in a continuation of the same of the Board and its counsel, a member bank body, of the same directors and stockholders, may property accept a draft drawn against the same property, assets, and banking busithe shipment of goods from a corporation to ness under a changed jurisdiction." (See its agent or branch even though no sale of the Metropolitan National Bank v. Claggett, 141 goods is involved in the transaction. U. S., 520.) The Federal Reserve Act authorizes any In view of the fact, therefore, that the conmember bank to accept drafts or bills of ex- version of a State bank into a national bank change which grow out of transactions involv- does not destroy the corporate identity of the ing the domestic shipment of goods, provided bank it 'would hardly seem necessary for the that shipping documents conveying or secur- State bank to file an application for the suring title are attached at the time of acceptance render of its stock or for the national bank to ana provided further that such drafts or bills file an application for new stock. Under the of exchange have a maturity of not more than circumstances it would seem that the only six months' sight to run, exclusive of days of action necessary would be the proper changes grace. It is the opinion of the Board, however, in the name of the member bank on the books that although the Act fixes a maximum ma- of your bank and if necessary the issue of new turity of six months, nevertheless, in any certificates of stock with the new name to be case where a draft is drawn against the ship- substituted for the old certificates. This, ment of goods, in a transaction which does not however, should not be done until you have involve the sale of those goods, the maturity received proper evidence that the conversion of the draft should approximate the duration has actually been accomplished and that the of their transit. In such a case the law con- Comptroller of the Currency has issued the templates that the acceptance of the draft certificates called for in section. 8 of the Fedshould be for the purpose of financing the ship- eral Reserve Act. ment and that it should not be the means of AUGUST 2, 1917.. furnishing a credit for any other purpose. A slightly different situation arises, however, in the case where a draft is drawn against the Paper Secured by Chattel Mortgage. shipment of goods in a transaction involving the sale of those goods, because in that case (To an individual.) the draft may properly be drawn and ac- Your letter of July 26 is received. cepted for the purpose of financing not merely The exact nature of the transaction to which the shipment but also the sale of the goods. you refer is not entirely clear to me. It ap- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

SEPTEMBER 1,1917. FEDEEAL RESERVE BULLETIN. 691 pears, however, that you contemplate drawing Loans on Real Estate. your draft on a member bank, such draft (To a national bank.) to be accepted by the member bank and to In reply to yours of July 11, you are advised be secured by collateral notes which arc, in that in the opinion of the Federal Reserve turn, secured by chattel mortgages on cattle. Board national banks are subject to the limi- Assuming that to be a correct statement of tations imposed by section 24 of the Federal the facts, the chief difficulty lies in the fact Reserve Act, and can not make loans on real that no national bank is authorized to accept estate except under authority of this act, a draft of that character; and whether a State which limits the amount to an aggregate sum bank which is a member bank would be perequal to 25 per cent of its capital and surplus mitted to accept such drafts depends solely or to one-third of its time deposits. If oneupon the laws of the State in which the bank third of its time deposits exceed 25 per cent is incorporated. of the capital and surplus, banks are given the There is no doubt, however, that any member benefit of this alternative maximum. bank could discount your promissory note which is secured by collateral notes, in turn JULY 26, 1917. secured by chattel mortgages on cattle. Such a note, however, would not be eligible for rediscount by a Federal Reserve Bank because of Custody of Gold, Lawful Moneys, and Federal Reserve Notes. the fact that it is not drawn for an agricultural, (To Federal Reserve agents and banks.) industrial, or commercial purpose, within the meaning of section 13 of the Federal Reserve The Federal Reserve Board transmits here- Act. with a ruling covering the joint custody and If the original note is issued for an agricul- control of gold, lawful money, and Federal tural, commercial, or industrial purpose, and if Reserve notes held by Federal Reserve Agents, it is discounted by a member bank with or as provided in the act approved June 21, 1917. without your indorsement, such member bank (Inclosure.) might properly rediscount it with a Federal These funds should be kept in safes, prefer- Reserve Bank, but your own note, even though ably with two locks, each with a different comsecured by the original note, is not eligible for bination, one in the control of the Federal rediscount under any circumstances, because in Reserve Agent and his representative and the itself it is not issued for an agricultural, comother in the control of the officers of the bank. mercial, or industrial purpose. As the Federal Reserve Bank is jointly liable AUGUST 1, 1917. for the safe-keeping of funds, a joint record should be kept of all transactions. Custody of paver pledged as collateral secur- Purchasing Bank's Own Acceptances. ity.—While the law does not require the joint custody of the commercial paper and other (To a Federal Reserve Bank.) eligible securities pledged as collateral for Fed- Your letter of July 23 has been received and eral Reserve notes, it is desirable that such considered. In reply you are advised that collateral also be held in this manner. In this while the Board has ruled, as stated, that when case there would be no objection to having the a bank buys its own acceptances they are to be Federal Reserve Agent designate a senior emregarded as loans subject to the limitations of ployee in the discount or credit department as section 5200, the right of the bank to resell or his representative, and to the bank's appointing reissue the acceptances is, in the opinion of a similar representative to act as joint custodians counsel, fully recognized by the authorities, of paper pledged. and where this is done thay may be treated as Audit.—Whenever possible, it would be well acceptances outstanding and not as loans. to have the auditor of the bank maintain a This would be applicable to cases where the continuous audit of the gold, lawful money, and acceptances are sold to or rediscounted with a Federal Reserve notes held in joint custody. Federal Reserve Bank as well as to those cases At least once in each two months a complete where such acceptances are sold in the open examination should be made of the accounts of market. the Federal Reserve Agent and a copy of the AUGUST 1, 1917. report sent to the Federal Reserve Board. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

692 FEDERAL RESEKVE BULLETIN. SEPTEMBER 1,1917. LAW DEPARTMENT. The following opinions of counsel have been Demand deposits may include (a) individual authorized for publication by the Board since deposits; (6) Government deposits; (c) bank the last edition of the Bulletin: deposits. (a) No provision of the act can be construed Deductions in Determining Reserves. as authorizing any deduction from individual Member banks, in determining the amount against which reserves must be carried, may deduct all Govern- deposits or time deposits. The depositor may ment deposits, except postal savings deposits, from the be indebted to the bank for money borrowed amount of gross demand deposits, and may deduct from but no offset is allowed on account of such the amount of balances due to other banks the amount of indebtedness. balances due from other banks, and may include in the (b) Government deposits (except postal savamount due from banks checks drawn on banks located in the same place and exchanges for clearing houses. The ings deposits which are time deposits) are exlaw, however, does not permit member banks to deduct empt from all reserve requirements under checks on other banks located in the same place or ex- authority of the act of April 24, 1917, and the changes for clearing houses from gross demand deposits, total amount of such deposits may be denor does it permit cash on hand to be deducted from gross ducted from demand deposits in computing demand deposits. reserve. JULY 19, 1917. SIRS: AS joint counsel for the Federal Re- (c) In the case of bank deposits, the Act proserve Board and the Comptroller of the Cur- vides— rency, this office has been requested to file In estimating the balances required by this an opinion on the subject of what, if any act, the net difference of amounts due to and ? deductions may be made from the liabilities of from other banks shall be taken as the basis member banks in determining the amount for ascertaining the deposits against which required balances with Federal Reserve Banks against which reserve must be carried. shall be determined. Section 19 of the Federal Reserve Act, as amended by the acts approved August 15, This language has heretofore been construed 1914, and June 21, 1917, definitely fixes the as authorizing member banks to deduct the amount and character of reserve to be main- aggregate amount due from other banks from tained. Each member bank is required to the aggregate amount due to other banks, and maintain with the Federal Reserve Bank of to carry reserve only against the net balance its district an actual net balance equal to not due to other banks. The circumstances under less than a fixed per cent of the aggregate of which this provision was incorporated in the its demand deposits and a fixed per cent of act, which will be later referred to, clearly indiits time deposits. The amount fixed varies cate that this construction is consistent with according to whether the banks are located in the intent of Congress. In determining the reserve, central reserve, or nonreserve cities, amount due from other banks, it has been cusbut with the exception of the variations in the tomary, for years past, to permit national amount the requirements are identical in each banks to treat the total amount of items placed case. in the mail and charged to the account of a Demand deposits are expressly defined as all correspondent as part of the balance due from deposits payable within 30 days. stich correspondent. In conformity with this Time deposits, under the terms of the act, custom member banks are still permitted to comprise all deposits payable after 30 days, all treat out-of-town items in this way. savings accounts and certificates of deposit In order that items payable in the same city which are subject to not less than 30 days7 in which the member bank is located may be notice before payment, and all postal savings placed on a parity with items payable elsedeposits. where, member banks are likewise permitted Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

SEPTEMBER 1, 1917. FEDERAL RESERVE BULLETIN. 693 to treat checks on other banks in the same place passage of the Federal Reserve Act were and exchanges for clearing houses as balances justified, it seems clear that since Congress has due from other banks, and to deduct the aggre- specifically defined deposits against which gate of such items from the aggregate balance reserve must be carried, and has specifically due to other banks. This ruling of the depart- authorized certain deductions to be made, ment seems also to be consistent with the pur- there is no present justification for reading into poses of the Act as indicated by the history of the Act any intention on the part of Congress this legislation. to allow other deductions not specifically Prior to the Act of May 30, 1908, generally mentioned. known as the Aldrich-Vreeland Act, no deduc- Notwithstanding the liberal interpretation tions were allowed by statute. In order, how- that has been placed upon the Act in defining ever, to afford some relief from the rigid re- balances due from other banks, it has been serve requirements which at that time neces- claimed that the amount against which reserve sitated the maintenance of a much higher re- must be carried should be still further reduced serve than is required at present, the depart- (a) by permitting checks on other banks in ment permitted national banks to deduct from the same place and exchanges for clearing liabilities against which reserve must be car- houses to be deducted from gross demand ried (a) Government deposits, (6) balances due deposits rather than from balances due to from other banks (including checks on other other banks; (6) by permitting cash on hand banks in the same place and exchange for clear- to be deducted from gross demand deposits. ing houses), (c) national-bank notes. The argument advanced in favor of the It is not entirely clear under what authority allowance of these deductions should, in the these deductions were allowed. National opinion of this office, have been addressed to banks, however, were required at that time to Congress rather than to the Federal Reserve maintain a certain reserve against "deposits." Board or the Comptroller of the Currency. As The act was not specific as to what should be above stated, neither the Federal Reserve treated as deposits and so this language was Board nor the Comptroller are vested with any probably construed to mean deposits which discretion to permit deductions not specifically were not offset by assets which could be used authorized by the Act and could not, in the for the immediate discharge of such liabilities. opinion of this office, justify a ruling that banks The Aldrich-Vreeland Act ratified in effect might deduct cash or other items from their the ruling of the department in so far as it gross demand deposits in computing their reserve. related to Government deposits. The act expired by limitation on June 30, 1916, but the Respectfully, act of April 24, 1917, above referred to, re- M. C. ELLIOTT, Counsel. enacted the provisions exempting Government To the FEDERAL RESERVE BOARD AND THE deposits from reserve requirements. The Fed- COMPTROLLER OF THE CURRENCY. eral Reserve Act specifically authorizes the deduction of balances due from other banks, Private Bankers as Members. The Federal Reserve Act does not permit a private but this office is advised of no other provision banker to become a member bank, nor does it permit of law authorizing any deduction from the Federal Reserve Banks to extend clearing privileges to amount against which reserve must be carried such a banker. by member banks and no discretion is vested JULY 30, 1917. either in the Federal Reserve Board or the SIR: The accompanying letter from a certain Comptroller of the Currency to permit such firm of private bankers raises two questions: deductions. First. Whether a private banker may be- Without passing upon the question whether | come a member of the Federal Keserve or not the deductions allowed prior to the ' System. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

694 FEDERAL RESERVE BULLETIN. SEPTEMBER 1, 1917. Second. Whether a Federal Eeserve Bank In the opinion of this office, therefore, it under authority of section 13 of the Federal would require a forced construction of the Eeserve Act, as amended, may receive de- language used to reach the conclusion that posits and extend the clearing privileges to a Congress intended the word "bank" as used private banker. in section 13 to include private bankers and Under the terms of the Federal Reserve in this view Federal Reserve Banks are with- Act no banks are eligible to membership out authority to extend the clearing privileges except national banks and those " incorpo- to such bankers. rated by special law of any State or organized Respectfully, under the general laws of any State or of the M. C. ELLIOTT, United States." Counsel. In the opinion of this office private bankers To HON. W. P. G. HAEDING, do not come within this classification. Con- Governor Federal Reserve Board. gress manifestly intended to admit to membership only incorporated banks. The language " organized under the general laws of Section 22, Federal Reserve Act. any State77 is ordinarily used to refer to Any violation of the provisions of section 22 of the corporations which have obtained charters, Federal Reserve Act by officers, directors, or employees of a member bank constitutes a crime, punishable by under the general laws of the State as disfine or imprisonment. No ruling or interpretation by tinguished from those which have been charthe Federal Reserve Board would afford any protection tered by special acts of the legislature. In to a person subsequently indicted by a Federal grand this view, assuming that the firm under con- jury for any such violation, it not being within the provsideration was not incorporated either under ince of the Federal Reserve Board to make an official ruling on the provisions of this section. Whether or not State or Federal law, it would not be eligible a contemplated transaction comes within the prohibited for membership in the Federal Reserve System. part of this section is a question which should be deter- In answer to the second inquiry, section 13 mined by the counsel for the bank in each case. The provides that— Board, however, may properly suggest ways in which member banks and their officers and directors may make Any Federal Reserve Bank * * * solely for a matter of record the affirmative action required by law the purposes of exchange or of collection may as a condition precedent to certain transactions authorreceive from any nonmember bank or trust ized by the act. company deposits of current funds * * * and drafts payable upon presentation; or maturing AUGUST 14, 1917. notes and bills: Provided, such nonmember SIR: The attached papers raise sundry bank or trust company maintains with the questions with reference to the proper inter- Federal Reserve Bank of its district a balance pretation of the recent amendment to section sufficient to offset the items in transit held for its account by the Federal Reserve Bank. 22 of the Federal Eeserre Act. These questions may be briefly summarized as follows: The first section of the act provides that— (1) Is it necessary that the board of direc- Wherever the word "bank" is used in this tors should authorize the receipt on deposit of act, the word shall be held to include State bank, banking association, and trust company, checks, drafts, or other items payable on except where national banks or Federal demand from officers or directors of the Reserve Banks are specifically referred to. bank ? The terms " State bank, banking association, (2) Where an officer or director is a member and trust company" are not ordinarily used of a firm or a stockholder in a corporation to indicate private bankers. In those acts in which is a customer of the bank, is it neceswhich Congress has undertaken to deal with sary that a majority of the directors should private bankers as a class, such bankers approve loans made to such firm or corporahave been expressly referred to in the act. tion? Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

SEPTEMBER 1, 1917. FEDERAL BESEBVE BULLETIN. 695 (3) Would it be consistent with the purposes rency, but whether or not giving immediate of the Federal Reserve Act to substitute for credit to a director for such items may be conthe resolution proposed by the Federal Reserve strued as a loan until the item is actually Board a written form of assent to be signed by collected involves a question of law upon which a majority of the board of directors? the Board should not express a definite opinion. In reply to these several inquiries it is If the counsel for the bank should reach the respectfully submitted that the Board should conclusion that the courts might construe adhere to its established policy of not under- such a deposit to be a loan, the bank could by taking to determine in advance whether a resolution of the Board authorize the receipt given transaction constitutes a violation of of such items, but this is a question which section 22. Inasmuch as a violation of the should be determined by the bank's counsel. provisions of this section is made a criminal In like manner, a loan to a firm or corporation act subject to a severe penalty, the Board in which the director is interested might or has no jurisdiction in the matter, and, as an might not be construed by the courts to be a administrative body, should not undertake to loan to the director within the meaning of this prejudge any case that may arise. act; and so counsel for the bank should deter- While the Board should not for reasons mine whether these transactions should be stated endeavor to express definite opinions included within the resolution referred to. on concrete cases arising, there would seem While this statute, a penal statute, would in to be no objection to its advising the banks all probability be strictly construed by the as to its understanding of the general purpose courts so as to avoid the possibility of including of this amendment, just as it approved in a transactions not contemplated by Congress, former instance an opinion of this office the Board should not undertake to rule on the dealing with the general purpose of section substance of any transaction or to express an 22.1 In this view, considering the context and opinion as to whether it would or would not the circumstances under which this amend- constitute a violation of law. It should conment was added, it seems that Congress fine its attention to a consideration of those intended to remove any doubt as to the right acts which are designed to make it a matter of banks to receive deposits from directors of record on the minutes or records of the bank under the same terms and conditions as it that the officers have taken the affirmative receives deposits from their customers and to action called for, and, to this end, the Board pay such rate of interest as it -psijs to other has heretofore suggested a form of resolution2 customers. It also intended to remove any to be passed by the directors of the bank doubt as to the right of any bank to make giving their assent to loans to directors. In loans to directors on the same general terms this connection it might be stated that the and conditions that it makes loans to its substitution of the written assent of a majority customers, it being provided in the latter case of the directors for the affirmative vote of a that as a condition precedent the directors, by 2 Resolved, That the president, cashier, or assistant cashier of this an affirmative vote or written assent of at bank be, and he is hereby, authorized to discount notes, drafts, or bills least a majority of the members of the Board, of exchange for , a director of this bank, en the same terms and conditions as other notes, drafts, bills of exchange shall authorize such loan. The receipt of or other evidences of debt are discounted for customers of the bank; deposits under an agreement to pay interest Provided, The aggregate amount of such notes, drafts, and bills of exchange discounted for such director and remaining unpaid shall at no would seem to contemplate the receipt of time exceed the sum of $ : Provided further, That in any checks, drafts, and other demand items on de- case in which any note, draft, or bill of exchange is discounted under authority of this resolution, a report shall be made thereof at the next posit, as well as the receipt of money or cursubsequent meeting of the executive and discount committee of the board and such report shall show the aggregate amount of liabilities i See May. 1915, Federal Reserve Bulletin, p. 16. of such director to this bank. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

696 FEDEBAL RESEBVE BULLETIN". SEPTEMBER 1,1917. majority would seem to be in accordance with As a result, it is the opinion of this office the terms of the act. that the drawer of the draft is not liable to Respectfully, the bank for money borrowed within the M. C. ELLIOTT, Counsel. meaning of section 5200 after the bank has To Hon. W. P. G. HARDING, rediscounted it with the Federal Reserve Bank. Governor, Federal Reserve Board. The status is then identical with, the case discussed in the opinion of October 27, 1916, Acceptances of Member Banks. where it was held that the mere acceptance An acceptance which has been purchased by the ! accepting bank and subsequently rediscounted with its | of a draft did not make the drawer liable to Federal Reserve Bank is not subject to the limitations of • the bank for money borrowed. In other words, section 5200 of the Revised Statutes. the transaction comes within the limitations JULY 28, 1917. of section 5200 only in the case where the SIR: In reply to your memorandum of accepting bank holds its own acceptance pur- July 19, you are advised that in an opinion j chased before maturity and in the case where filed by this office on October 27, 1916, and the drawer has failed at maturity to provide printed in the December, 1916, Bulletin, it was funds with which the accepting bank can make stated that the mere acceptance of a draft by payment. a national bank does not make the drawer of Respectfully, that draft liable to the accepting bank for M. C. ELLIOTT, Counsel. money borrowed within the meaning of section I To Hon. JOHN SKELTON WILLIAMS, 5200 of the Kevised Statutes; but it is also Comptroller of the Currency. stated that, though the accepting bank may legally purchase its own acceptance, nevertheless, if it does so the acceptance then Powers of State Banks Which Become Members. becomes subject to the limitations of section A State bank which becomes a member of the Federal 5200. Reserve System may continue to make loans to one cus- The question presented in your memorandum tomer in excess of 10 per cent of its capital and surplus, is whether an acceptance which has been pur- provided it is authorized to do so under the laws of the State in which it is located. The obligations of any one chased by the accepting bank and subsequently customer to whom the bank has loaned more than 10 per rediscounted with its Federal Ileserve Bank re- cent of its capital and surplus would not, however, be elimains subject to the limitations of section 5200. gible for rediscount with the Federal Reserve Bank. After the accepting bank has purchased and Any State bank which becomes a member of the Fedrediscounted its acceptance with the Federal eral Reserve System must subscribe to the capital stock of its Federal Reserve Bank in an amount equal to 6 per Reserve Bank, the legal relations between the cent of the capital and surplus of the subscribing bank. accepting bank and the drawer of the draft are precisely the same as they were before the JULY 25, 1917. accepting bank purchased the draft. The SIR: The attached letter has been referred fact that the accepting bank may have in- to this office for an opinion on the questions dorsed the acceptance when it was rediscounted submitted. The writer asks to be advised— with the Federal Reserve Bank does not alter If, after its admission to the Federal Rethe legal relations between that bank and the serve system, a New York State bank can condrawer. The accepting bank is ultimately tinue to loan to its customers 40 per cent of its capital and surplus when sufficient collatliable in any event and the indorsement, eral is deposited with them ? though it may have the effect of guaran- What amount of stock is to be subscribed teeing prior indorsements, does not affect the by a bank with a capital of $300,000 and a surbank's relations with the drawer. plus of $300,000 % Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

SEPTEMBER 1,1917. FEDERAL RESERVE BULLETIN. 697 Section 9 of the Federal Reserve Act as paid in by national banks, State banks would amended does not limit the amount that a not be called upon to pay more than this State bank or trust company becoming a mem- amount unless it should later become necessary ber of the Federal Reserve System may lend for the Federal Reserve Board to call for addito one person, firm, or corporation. It does, tional subscriptions from all member banks. however, provide— A State bank, therefore, entering the system That no Federal Reserve Bank shall be per- with $300,000 capital and $300,000 surplus mitted to discount for any State bank or trust would be required to pay in $18,000 and the company notes, drafts, or bills of exchange of remaining $18,000 would be subject to call of any one borrower who is liable for borrowed the Federal Reserve Board and would be called money to such State bank or trust company in an amount greater than ten per centum of only in the event that all member banks were the capital and surplus of such State bank or called upon to make additional subscriptions. trust company, but the discount of bills of ex- Respectfully, change drawn against actually existing value M. C. ELLIOTT, Counsel. and the discount of commercial or business paper actually owned by the person negotiat- To Hon. W. P. G. HARDING, ing the same shall not be considered as bor- Governor Federal Reserve Board. rowed money within the meaning of this section. The Federal Reserve Bank, as a condition of the discount of notes, drafts, and bills Laws of Washington Authorizing National Banks to Act of exchange for such State bank or trust com- as Trustees. pany, shall require a certificate or guaranty to By an act of the Legislature of the State of the effect that the borrower is not liable to such bank in excess of the amount provided by Washington, approved March 10, 1917, nathis section, and will not be permitted to be- tional banks located in Washington are percome liable in excess of this amount while such mitted under certain circumstances to exercise notes, drafts, or bills of exchange are under the powers of a trust company. The law prodiscount with the Federal Reserve Bank. vides, in part, as follows: While the State bank may, therefore, lend "SEC. 16. A national bank located within to one customer an amount equal to 40 per this State and having a paid-up capital of cent of its capital and surplus, if it is permitted $50,000 or more, when authorized or permitted to do so under the State law, the obligation of so to do, by or under any act of the Congress of the United States, may exercise any of the such customer would not be eligible for redispowers conferred upon trust companies by this count with the Federal Reserve Bank. act. In answer to the second inquiry: State banks "SEC. 17. Before any such national bank becoming members are required to subscribe to shall engage in such trust business, it shall file the same amount of stock that they would be a certificate with the State bank examiner, required to subscribe if they entered the system wherein it agrees to conform to all the regulations and restrictions of this act relating to as national banks. National banks are retrust companies and trust business, including quired to subscribe to an amount equal to 6 per the examination of its trust business by said cent of their capital and surplus. One-half of examiner and the payment of the fees therethis amount is paid in in installments and the for, herein prescribed for the examination of remaining one-half remains subject to the call banks and trust companies. Upon the filing of such a certificate in a form to be approved of the Federal Reserve Board. by said examiner, such national bank shall be The whole subscription of State banks be- subject to all the regulations and restrictions coming members is payable on call of the Fed- of this act relative to trust companies and trust eral Reserve Board, but as only 3 per cent is business/' Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

698 FEDERAL RESERVE BULLETIN. SEPTEMBER 1,1917. SUMMARY OF BUSINESS CONDITIONS AUGUST 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 Spotty. Good, but with Good. Somewhat unset- Highly satisfac- Good. some seasonal tled. tory. dullness. Crops: C O o u n tl d o i o ti k on G G o o o o d d , L B a e g r l i o g v w e e a n c b o re r u a m m g a e l p w e i r ll . . . . . . . . . d d o o G Fa o v o o d rable E .. x .. c d e o llent. D D o o . . crops. Industries of the dis- Busy.. Well engaged, but Busy.. Hesitating. Active and profit- Operating trict. several lines not able. mum. at maximum. Construction, build- Nearly up to previ- Building construc- Falling off in Improved.. Restricted by lim- Slow. ing, and engineer- ous high record. tion continues number of op- ited labor and ing. extremely dull. erations. high wages. Foreign trade Large Well maintained.. Very large Bank clearings Increase C c o r n ea t s i e n . ued in- Increase , Increased. 7% increase... e ... Increase. Money rates Firm Firm and for some No change. Steady 5 to 6%; fair de- Stationary. weeks past quite mand and supsteady. ply- Railroad, post office, Decrease ,! Railroad receipts Increasing.. Increased. Large volume, but and other receipts. at record levels; no improvement Increase. postal receipts in railroad net. normal. Labor conditions Well employed.... Sh w o a rt g a e g s e h o ig f h l . abor; Unsettled Fair De h m ig o h r a w li a z g e e d s pa b i y d Fair. on Government contract. Outlook. Uncertain.. W m ar e n r ts e a pr d o j g u re s ss t- - Good.. ....do Very satisfactory.. Good. ing well; outlook good. Remarks. Business generally War revenue and waiting more price fixing definite view of measures retardthe future. ing commitments for future operations. District No. 7— District No. 8— District No. 9— District No. 10— District No. 11— District2No.*12— Chicago. St. Louis. Minneapolis. Kansas City. Dallas. San^-Francisco. General business Fair; some hesita- Satisfactory. Good Less active Good Active. tion. Crops: Condition Good Good Ha sw rv i e n s g t . in full Much improved... Go so o u d t h e , x so c u ep th t ce i n n - Good. tral, and southwest portions. Outlook do.. Promising., Encouraging Favorable Ind tr u i s c t t r . ies of the dis- Active. Active Active Bu o s r y d , e rs w ith p ro w m a i r - Ac n t i i n v g e fu a l n l d ti m r e u . n- Active. nent. Construction, build- Slow. Somewhat Less than year ago. Less activitj7- Decrease due to Slight increase. ing and engineering. stricted. midsummer season. Foreign trade... Increase over simi- Large; increasing,. lar period 1916. Bank clearings.. Increasing.. Increase Increasing , Marked increase... 32£ per cent increase over lulj, 1916. Money rates Firm No change Firm Ge a n ry e . rally station- No m a c n h d a n g g o e o ; d , b d u e t - Firmer tendency.. funds ample for requirements. Ra a i n lr d o a o d th , e p r o r s e t c e o i f p fi t c s e . , Decreasing. Ra c i e l i r p o t a s d i g n r c o r s e s a s r e e ; - Increase Increase. Ra p i o lr s o t a o d ff i i c n e c r s e m as a e ll ; Increasing. c p r o e s a t s e. office in- decrease. Labor conditions Good Fair Fairly good Sh t o h r a t n ag e u s a u n a d l m u o n r - e Unsettled. Unsettled. rest. Outlook,. ..do.. Favorable Good Optimism prevails Extremely favor- For great activity.. able. Remarks. Business seems to Crop conditions Business has re- Drought still obbe awaiting defi- have improved. vived substan- tains over south, nite advice with tially with im- southwest, and regard to taxa- proved crop con- extreme western tion. ditions. portions of the district; ranges in bad condition and cattle industry heaviest sufferer. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

SEPTEMBER 1, 1917. FEDEBAL RESERVE BULLETIN. 699 GENERAL BUSINESS CONDITIONS. There is given on the preceding page a sum- ufacturers bidding on Government work will mary of business conditions in the United have the option of furnishing the wool them- States by Federal Reserve districts. The re- selves or having it furnished by the Governports are furnished by the Federal Reserve ment. Reports from both woolen and worsted Agents, who are the chairmen of the boards of mills indicate that practically all available directors for the Reserve Banks of the several machinery is busy. A large part of this madistricts. Below are the detailed reports as of chinery is engaged on Government work, in the approximately August 23 : case of woolen spinning spindles the percentage being as high as 33-| per cent. DISTRICT NO. I—BOSTON. The market for fine and fanc}^ cotton goods Midsummer finds business on the whole good, but decidedly spotty, with no definite is quiet, the only feature being some Governtrend apparent. It is not unusual to find one ment buying. Prices have stopped advancing department of a business busy, with advanc- and in some cases slight recessions are in eviing prices, and another quiet, with prices dence. Production is curtailed by lack of opsagging. The predominant feature in all eratives and by the selling of surplus yarns by lines of business is caution, and every one is manufacturers who will not manufacture goods reluctant to make commitments until the to sell at lower prices. Print cloth mills are future course of affairs can be more definitely well sold ahead, but are also curtailing someanalyzed. Government orders are a large what because of shortage of labor. factor, but the high wages paid labor can not The crops have been materially helped by be disregarded as creating a large domestic recent rains. A large yield of hay of excellent buying power. For this reason it is felt that quality has been secured. Potatoes are doing as long as conditions continue as at present well, as are oats and corn, although the latter business will be good, and there is confidence is some weeks behind. Apples continue to fall in the prospects for good trade later in the from the trees and indications are that the crop season. will be poor. Peaches are in excellent condition, with prospects good. The boot and shoe manufacturer is still finding the retailer reducing his stock rather Money is not overabundant in this district, than placing new orders. Manufacturers have and except in one or two of the larger centers for a good while urged this policy on the ground little commercial paper is moving, banks that, although prices were advancing, it was simply taking care of the needs of their own poor business to overstock only to find, wiien customers. The general trend of money, the time came to realize, that styles had especially on time, is upward rather than downchanged and a sacrifice was inevitable. Re- ward, as is usually the case at this time of the tailers are apparently heeding these warnings, year, when banks are called upon to make and more careful purchasing is to be expected. advances on wool and other crops as they come At present Government orders are keeping to the market. This, together with the final manufacturers busy. payments on the Liberty Loan and other Wool dealers have offered to the Government Government financing, has kept banks in this 50 per cent of the wool held by them, the option district moderately well loaned up, but with to run for two weeks, at prices ruling the week the redepositing of Government funds the of July 30. Experts are at present appraising banks have been able to finance themselves, samples offered and, pending definite action for the most part, without recourse to the by the Government, trading is quiet with prices Federal Reserve Bank for rediscounts to more firm. If the project works out favorably, man- than a moderate extent. Call money, 4£ to 5 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

700 FEDERAL RESERVE BULLETIN. SEPTEMBER 1, 1917. per cent, the former rate prevailing for quick and continuing conservatism on the part of call. Six-month money is quoted at 5 to 5-|- buyers at wholesale and retail. Manufacturers per cent, according to names and collateral, for the most part are buying raw materials and short commercial paper has sold as low only in quantities sufficient to care for orders as 4f- per cent. Town notes, fall maturities, in hand, and there has been general adoption 4 per cent; bankers' acceptances, 90 days, 3§ of the practice of setting aside special reserves per cent upward. to meet possible losses occasioned by changes Loans and discounts of the Boston Clearing in price levels or buying demand during and House banks on August 11, 1917, amounted to after the war. Decreased buying of steel prod- $451,796,000, as compared with $479,936,000 ucts by private interests has made for easier last month and $418,825,000 on August 12, conditions in the steel trade, as is indicated 1916. Deposits on August 11, 1917, totaled by the decrease of unfilled orders of the Steel $358,845,000, as compared with $379,176,000 Corporation to 10,844,164 tons, the lowest on July 14, 1917, and $321,999,000 on August since October, 1916, with a further decrease 12, 1916. The amount "due to banks'7 on expected during August. August 11 was $124,266,000, as compared with By national cooperation the railroads effected $137,610,000 on July 14, 1917. a reduction in car shortage from 148,627 on Exchanges of the Boston Clearing House May 1 to 33,776 on August 1, in the face of for the week ending August 11, 1917, unprecedented demands for freight service and were $211,659,320, compared with $158,108,531 with material increase in gross and net railway for the corresponding week last year and earnings. Lessened activity in such lines as $269,952,416 for the week ending August 4, building materials, building construction work, 1917. furniture, musical instruments, civilian cloth- Building and engineering operations in ing, automobiles, etc., has permitted transfer New England from January 1 to August 1, of labor and supplies to other industries or 1917, amounted to $118,582,000, as compared other branches of the same industry in which with $120,806,000 for the corresponding period activity has increased. Labor conditions in of 1916, the highest previous year recorded. this district are less acute than in past months, The receipts of the Boston post office for except as to farm labor. Wages have con- July, 1917, show an increase of $25,825.40, or tinued to advance and serious strikes have been about 4 per cent, more than July, 1916. For avoided, the important exception being the the first 15 days of August, 1917, receipts were strike of employees of shipbuilding plants about 1 per cent, or $3,131.49 less than for the which is now in progress. corresponding period last year. Owing to a planted acreage in this district Boston & Maine Railroad reports net operat- far above normal, bumper crops of hay, potaing income, after taxes, for June, 1917, as toes, and vegetables are expected. Wheat, $872,402, as compared with $1,415,604 for the oats, barley, and rye will also yield well, but corresponding month of 1916. New York, the corn crop is expected to be only fair. The New Haven & Hartford Railroad reports net fruit yield will be much short of normal. Food operating income, after taxes, for June, 1917, prices have fallen somewhat since the coming as $1,819,613, as compared with $2,130,884 to market of new crops and apprehension as to for the same month last year. a possible food shortage is much lessened. DISTRICT NO. 2—NEW YORK. Stock-market trading has been quiet for Midsummer has brought a seasonal lull in many weeks past, though the number of shares business and industry, contributing factors handled has been greater than for the same being the waiting attitude of those most weeks last year. The public has shown little directly interested in Government price fixing, interest in the market, and since the middle Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

:SEPTEMBKE 1,1917. FEDEEAL RESEBVE BULLETIN. 701 of July prices have shown little general change. The wool market is awaiting the action of Bond sales have ruled below those for the same the Government in fixing prices, as it is said weeks last year, but prices have been steady that the Government needs 50 per cent of the since early July. Advantage has been taken wool in the hands of dealers. Civilian busiof the period between Liberty loans to bring ness is very dull, as people are loath to buy out several corporate issues of short-term securi- wool at prevailing high prices. ties at attractive interest rates, which have Textile manufacturers are busy, although been readily absorbed by the market. The consumption is generally less than a year ago. placing of $100,000,000 two-year gold notes in Member banks continue to avail themselves this market hy the Canadian Government to quite freely of the rediscount feature of the yield 6.07 per cent has been perhaps the most Federal Reserve Bank. Local institutions striking single transaction of the month, the are well loaned up, and the money market is $300,000,000 issue of United States 3i per cent on a firm 5 per cent basis. There is a good Treasury certificates on August 9, of which commercial demand for funds. Public interest $175,000,000 was placed in this district, being in the security markets is at a low ebb. taken quite as a matter of course. DISTRICT NO. 4—CLEVELAND. Banking conditions are satisfactory. Re- It is rather difficult intelligently to analyze quired reserves of all members of the Federal business conditions at this time, chiefly for Reserve System have been transferred to the two reasons—a lack of precedent and an un- Federal Reserve Bank, thus greatly increasing usually spotty condition due to the necessary its gold holdings and ability to extend credit Governmental preferences which are being to meet any situation. Its gold and lawful given to certain lines of manufacture. There money holdings on August 20 were $642,000,000 is a good deal of hesitancy with respect to new or 85 per cent of liabilities. Loans and disundertakings, doubtless due to the question of counts which on June 19 stood at $252,000,000 price fixing which is now so prominent. were on August 20 only $67,500,000. The outlook for business, however, is excel- DISTRICT NO. 3—PHILADELPHIA. lent, once the two disturbing elements of price There has been no important development and distribution are fixed. in the business situation in this district during Reports from all localities in this district, the past month. A strong tendency toward with very few exceptions, indicate that one of caution exists on the part of buyers, owing to the largest crops in history will be raised this the uncertainty of future prices and the high year. A very large wheat and oat crop has cost and scarcity of many kinds of goods. been harvested, considerable threshing has There is a steady readjustment to war condi- been done, and the yield is heavy. The tions, but business men generally expect that weather generally has been favorable for corn, fall and winter trade will be active. and a good crop is now well under way. No decrease in industrial activity is reported, There is no doubt that farmers in this district except such as is due to weather conditions. have considerably underestimated their crops. Retail distribution is largely confined to sea- Burley tobacco is doing well. Quality and sonable merchandise. Concerns handling quantity are up to average, and possibly a young men's clothing, laces, embroideries, etc., little better than last year. have been adversely affected. Altogether, agricultural conditions in this Government orders for cotton are large, but section have never been so promising as at the the regular commercial trade is unsettled. present time. The actual turn-over is not larger in quantity The steel business is less active than last than a year ago. Prominent cotton houses month, although nearly all the mills are still expect a decline in the price of cotton. booked to capacity. There is less overtime in Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

702 FEDERAL RESERVE BULLETIN. SEPTEMBER 1,1917c the mills than prevailed a few months ago. culty in securing male labor for the various The obligations of mills to their domestic trade industries is commented upon. are being interfered with to some extent by Mercantile business is only fair. The effect the constantly increasing demands of the of economies, both voluntary and enforced, is Government. The maximum tonnage of iron being felt. Manufacturers engaged in supplyore that the boats and railroads can handle is ing jobbers and retailers are showing caution being moved, and this high volume no doubt in the matter of contracts both for purchase will continue until the end of the shipping and sale. season. The pig-iron market is quiet, as man- While collections in some parts of this districtufacturers are waiting to see what the Govern- are reported as improved over last month, yet ment will do about price fixing. most of our correspondents report slower pay- Cement companies are not running much ments. Many of the larger companies state over 50 per cent capacity. There has been a that their collections are coming in considerably very decided slump in the clay product busi- behind the estimate for the month. ness within the last 30 days. There is a continued active demand for loans There is a frantic demand for fuel on the throughout the district, and the rates are steady part of all users of bituminous coal and operat- at 5£ and 6 per cent for both time and demand ing companies. On account of an inadequate paper. Banks seem to be fully taking care of car and labor supply, the mines are having customers, but it is a lender's market. difficulty in producing a sufficient tonnage to The investment securities markets are less take care of requirements. Unless some relief active than formerly, and prices have receded is afforded in the transportation facilities to generally. the Northwest, that section will suffer severely More recently the deposit lines in the importhrough insufficient fuel supply. tant centers have shown substantial increases While the manufacture of motor-truck tires in both demand and time. and balloon fabrics is more active than ever before, the balance of the rubber industry is DISTRICT NO. 5—RICHMOND. only fair, due to the falling off in sales of Business in general continues unusually pleasure cars. Some of the companies are active, particularly for this time of year, working only five days a week, and others especially in manufacturing lines. The conhave eliminated the third shift. ditions existing at the present time are so The glass and pottery business appears to be unusual and in their effects present such widely in excellent condition, and a fine fall business diversified features that it is difficult to make is anticipated. Some of the factories are either any sound comparison with the past or making extensive improvements to their plants. a conservative estimate as to the future trend. The recent advances in crude oil have again We can only take conditions as we find them stimulated that industry, which is already in and live from day to day. The inflation in a very prosperous condition. prices, in every direction, is reflected in the Building operations are still in an unsatis- increased amount of capital necessary to transfactory condition. Large building is at a act business, but unprecedented profits in most standstill. Money for building and real estate lines seem to have made this a matter of little operations is very scarce, which, together with moment. General reports are optimistic, and the shortage of labor and the high cost of mate- there are few discordant notes. rials, is affecting unfavorably the building line. The selective draft and the necessary prepa- All of our reports this month contain com- rations to take care of the men called to the plaints on the labor situation. Increasing diffi- colors have been a most disturbing element in Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

SEPTEMBEB 1, 1917. FEDERAL RESERVE BULLETIN. 703 the labor situation, which has been generally DISTRICT NO. 6—ATLANTA. disorganized, and complaints in regard to it Practically all factors underlying general are universal. The work on the cantonments business continue in large volume and high at Columbia, S. C, and Petersburg, Va., the activity. Less favorable conditions, wherever naval base at Norfolk, Va., and Government found, are the result of either shortage of labor work contemplated at Richmond have called or materials, or the lack of proper transportafor an unprecedented volume of labor. Very tion facilities. The definite settlement of the high wages are being paid, the result being to food control legislation has had a steadying take laborers from manufacturers, industrial j effect and the bright outlook for all crops gives plants of all kinds, and from the farms. Many the business public a more substantial feeling complaints are heard of inability to harvest than is usual at this season of the .year. the growing crops. The large amounts paid Crops.—The prospects are favorable for out through these laborers have been an arti- record-breaking crops of every character, cotficial stimulant to trade, from which there must ton excepted. A rainy season prevailed largely necessarily be a decided reaction. throughout the district during the first half of Crops in this section are reported unusually the month, practically a little too much for good. Wheat is above the average, corn is this season of the year, but only in a few insaid to be the best ever raised in the district, stances has damage been reported, other than tobacco is up to or above normal, and while to increase the insect activity on cotton and cotton is below the average in output the high other crops. In the southern half of the disprices will, so far as value is concerned, more trict, practically ail crops have been laid by. than offset the decline in volume. Prices of all Crops have been well cultivated the entire these crops are high, tobacco has already com- season, in fact more than in ordinary years. menced to move, and the demand for currency Especially good reports come from central and in the interior is much larger than usual, south Alabama, where last year heavy rains While financial demands for crop raising destroyed the crops. have been unusually heavy, and the demand It is naturally supposed that the boll-weevil for rediscounts above the normal, many banks would make greater progress on account of the still report a surplus of funds, and the general recent rain, it being impossible to get into the demands of the district have been handled cotton to work it or to eradicate the weevil, without any strain. but the rainy season was not followed by hot While a considerable amount of the late pay- weather productive of weevils; and, owing to ments against Liberty bonds have been redis- the absence of this heat wave, there has been tributed among depositaries in the district, all very little shedding. The weevil is reported calls made by the Government have been as increasing in some sections and may probably promptly met, and the subscriptions of the dis- get the top crop, but most of the old cotton is trict to the last issue of Treasury certificates full of grown bolls and still improving. Grass was not allotted in full, but scaled on account that sprung up during the rain did not largely of the general oversubscription to them. injure the crop, as most of the fruit that is There seems to be a conservative realization counted on is now in the shape of grown bolls. of the fact that we are living and doing business The plant is holding its fruit well, and is bein unusual times and under unusual conditions, ginning to open fast in the southern portion of from which there must be a return to a more the district, where picking is under way. conservative level, and this leads to the hope, Some of the first bales have been marketed. if not to the expectation, that when this return In the sea-island cotton section, reports inditakes place we shall be able to accomplish it cate that the boll-weevil is doing more than without serious dislocation of business. ordinary damage, but at least a normal crop Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

704 FEDERAL RESERVE BULLETIN. SEPTEMBER 1,1917;. of this variety of cotton is looked for con- Naval stores.—The comparative scarcity of" sidering the fact that the acreage devoted to it labor and high prices prevailing for supplies has been greatly increased this year. entering into the cost of manufacture have put The corn crop is abundant. Early corn is upon the producer an unusual burden. There1 ripening and late corn growing nicely. The has been a slight advance, something like 5 per Tennessee tobacco fields bid fair to yield a full cent, in the value of spirits of turpentine, and average crop, the present conditions surround- also a small advance in the value of rosins ing it being favorable." within the past 30 days. The rainy weather Sugar.—Louisiana is raising a $50,000,000 during the month caused a slight decrease in crop of sugar this year, compared with a production. Stocks are low, and this fact,, $35,000,000 crop in 1916. A new branch of coupled with the high price which will probthe industry has developed in this State within ably have to be paid for cups next season, the past few months. A number of the larger indicates considerable reduction and higher mills are importing Cuban raw sugars and re- prices. From the producers' standpoint confining them—work which has never been done ditions in this industry are by no means satisheretofore except by the American Sugar Re- factory. fining Co. Shipbuilding.—This industry has taken on a Rice.—The consumption of rice has increased sudden and strong activity not equalled by any 20 per cent in the past six months, resulting in in the South in the past 20 years. The Tenneshigher prices for this commodity and prospects see Coal & Iron Co., the Alabama subsidiary of high prices for some time to come. Cleaned of the United States Steel Corporation, have rice is selling on the floor of the New Orleans purchased 3,500 acres of land and secured Board of Trade at 4.75 to 7.50 cents per options on 8,000 additional acres at Mobile^. pound. At these prices rice growers have Ala., and have begun the erection of a shipprospects of a big profit. It is estimated that building plant at that port. Like industries the Louisiana crop this year will bring at Mobile are fully employed and making $25,000,000, or $7,000,000 greater than last additions. At Savannah there are under year's crop. contract and construction 27 ships of various Flour.—Mills are all running strong and tonnage, representing approximately $11,500,supplying the demand. The food control idea 000, with four plants in operation and several of stabilizing prices will largely eliminate specu- thousand skilled workmen employed. Shiplative features in the trade, and modest and building at this port prior to 1916 was neglicontinuous buying on the part of the merchant gible. At New Orleans new shipbuilding yards is looked for, as there would be no advantage I have been constructed giving employment to in carrying large stocks. Prices for bran and several thousand men. The New Orleans shorts have been unusually high, but the Board of Trade has launched a campaign to prices on mill feed are much cheaper than on rebuild the naval station. At Brunswick, Ga., any other character of stock feed. from a thousand to fifteen hundred men are Lumber.—The demand continues greater engaged in this industry. Like activities are than the supply. Prices are higher than for reported at Jacksonville and other plants along several years. Members of the Southern Pine the Atlantic and Gulf coasts. The material Association have unfilled orders for 50,000 cars used in ship construction at these points is of lumber. With the Government's demands largely being drawn from the South and the for lumber and the unusual calls from other labor and material conditions affecting the lines, the only discouraging feature in this | industry are reported good. market is the car shortage, which it is hoped Wholesale and retail and manufacturing.— will be relieved by the proposed plan of the The wholesale and retail houses report trade National Council of Defense. good, collections easy, and business generally Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

SEPTEMBER 1,1917. FEDERAL RESERVE BULLETIN. 705 on a sound and satisfactory footing. The Post-office receipts show a gain of 10 per production of coal, pig iron, steel products, cent during July, 1917, as compared with the and the activity of the various manufacturing previous year, at 10 of the more important plants, chiefly those that deal in the manufac- offices in the district. ture of machinery of different kinds, are largely DISTRICT NO. 7—CHICAGO. responsible for the good business conditions. Business is showing some hesitation, as many Business being pitched on an abnormal plane buyers wish to await the outcome of the legisis calling for frequent and sudden adjustments lative and regulative measures now under conin both wages and conditions surrounding sideration before acting. The question of exlabor. This is strongly evidenced by the cess-profit taxation and price fixation is conreorganization and demand of the union coal stantly before manufacturers and business miners throughout the Birmingham district. men, and when a definite policy has been de- In this field the threatened walk-out has been termined there should be a renewal of acpostponed pending the proposed visit of the tivity, as basic conditions are generally sound Secretary of Labor. and the crop prospects are excellent. Banks Real estate and building.—The real-estate are able to use their available funds in legitimarket shows a slight improvement, confined mate channels at firm rates and borrowing largely however to particular parts of the customers are making their arrangements to district. Other than the army cantonments care for their financial needs. and in the vicinity of their location, building The bond market is quiet, with some call for remains normal to the local need, restricted short-term notes, and the attention of inveslargely to absolute demands owing to the tors is naturally concentrated upon the large inability to get shipments of building materials Government issues which have been and are and lack of finance, due partly to subscriptions to be placed. General investment securities to Liberty Loan bonds and Red Cross funds. are being held back by uncertainty as to the In view of the better crop prospects, contractors new tax program. feel more optimistic, as it is not thought that Crop conditions throughout the district are building will be delayed on account of the reported as good, with Illinois wheat estipresent prices of building materials as no sub- mated as half a crop, oats as the largest yield stantial decrease can be expected for a number in the history of the State, and prospects for of years. corn excellent. Indiana expects good corn General.—There is comparatively little trad- and oats crops and a fair production of wheat. ing in municipal or industrial bonds. Much Iowa is harvesting a good crop of small grain, of the money which would probably have gone and corn should furnish one of the largest into such funds was used in subscriptions to i yields in a number of years. Michigan and Liberty Loan bonds. Bond men express the . Wisconsin will give a good account of thcmopinion that the publicity given to the Liberty | selves and a good potato crop is in prospect. Loan will ultimately create an interest in other : There is reported a strong call for agriculbonds among a class who have not heretofore j tural implements owing to the labor shortage, bought them. ; high prices of grain, and demand for increased During the month the Hibernia Bank & I production. Men are being taken from the Trust Co. of New Orleans, the largest State | farms and horses are being purchased for miliinstitution in the South, was admitted to ! tary uses. These facts have made the tractor membership in the Federal Reserve System. I practically a necessity on many farms. The Money rates hold fairly firm with little | great difficulty faced by manufacturing conreduction anticipated. cerns is the shortage of labor and the uncer- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

706 FEDERAL RESERVE BULLETIN. SEPTEMBER 1,1917. tainty connected with the price and delivery Shipbuilding and the steel industries report of the needed raw materials. no change and are operating to capacity. The situation as regards the automobile Watches and jewelry have experienced an manufacture has not changed during the past excellent year up to date and expect a continmonth and there appears to be a good demand uance of this condition through the fall. for low-priced pleasure cars of good quality. Woolens of good quality are very difficult to Building and its allied lines are quiet except obtain even at the present high prices and the in so far as Government construction is con- wool market is firm with moderate activity. cerned. The demand is largely based upon military Coal mines are operating at about 60 per requirements, civilian orders having shown a cent capacity, due to lack of miners and decrease. scarcity of cars. The profits in this line are j Clearings in Chicago for the first 20 days of large and some concerns report the likelihood | August were $1,277,000,000, being $199,000,000 of a coal shortage during the coming winter. | more than for the corresponding 20 days in Liquor is being disposed of at substantial | August, 1916. Clearings reported by 21 cities prices and distilleries are making efforts to con- in the district outside of Chicago amounted to vert their equipment to other uses. Breweries $273,000,000 for the first 15 days of August, are transacting a satisfactory business and 1917 1917, as compared with $219,000,000 for the should be a good year in this line. first 15 days of August, 1916. Deposits in the Merchandise stocks with retail dry goods 12 Central Reserve City member banks in Chimerchants are heavy, which is affecting whole- cago were $823,000,000 at the close of business sale distribution. Outstanding accounts are August 20, 1917, and loans were $568,000,000. reported large, with collections fairly good. Deposits show an increase of approximately Furniture manufacturers report a good de- $11,000,000 over last month and loans remained mand. approximately the same. Grocers enjoy a good volume measured in dollars and cents, but retailers with limited DISTRICT NO. 8—ST. LOUIS. capital are having a hard time on account of Business conditions in this district show little the increased values. change during the past 30 days. The general In the hardware line, there is a slight falling activity has been well sustained during the dull off in buying, but the volume of sales on the summer months, while all reports indicate a whole is good. very favorable outlook for fall trade. Leather is in demand for Government con- Although building construction has been tracts and labor continues scarce. Collections restricted for the past few months, there is at are fairly good. present an active demand for lumber due to The packing industries are finding a good the heavy requirements of the Government in domestic demand and a slight decrease in for- building cantonments for training the National eign requirements. The prices are holding Army. Supplies of lumber on hand are light strong and the high quotations both for meat and lack of transportation has hampered and grain are bringing to market many cattle further activity. Sales of hardwood are reand hogs. ported to be exceptionally heavy. Lumber concerns are affected by the de- The dry goods business this summer has creased building operations. been up to normal, although stocks in the hands Mail-order concerns report an increase in of retailers in the small centers have been and sales over the entire district and piano manu- still are higher than the average. Orders for facturers are finding an improvement in orders. fall delivery have generally been very satis- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

SBPTEMBEE 1,1917. FEDERAL RESERVE BULLETIN. 707 factory and largely in excess of former years. tion and the harvest should materially exceed Manufacturers of women's ready-to-wear gar- both the five-year average and the 1916 yield. ments report that their business has been Recent rains put the ground in excellent somewhat curtailed by the rapid increase of condition for cultivation, and plowing for prices. Shoe manufacturers throughout the winter wheat is now well under way. There district, and especially in St. Louis, have is already an agitation for an increase in the shown increases in sales from month to month. winter-wheat acreage. Government contracts for Army shoes are a The Government report on the cotton crop factor in the market. as of July 25 shows an improvement in con- Manufacturers and jobbers of hardware, dition for all the States in this district as comwoodenware, and paper all report an active pared to the condition on June 25, and the business, with the output in some cases ham- improvement shown is borne out by reports pered by the scarcity of raw material and delays from private sources. The weather during the due to car shortage. last 10 days has been favorable, and it is not Last month I reported that the outlook for now expected that the season will be as late as the crops was favorable and reports received was expected a month or two ago. In general from private sources, during the past few days there is little report of insect damage, and even indicate that substantial progress has been in Mississippi the boll-weevil damage, to this made. General rains throughout the central date has not been as serious as was feared. portions of the district early in August ma- The condition of the crop in Arkansas is reterially helped the situation. The combined ported to be excellent and the lateness of the condition of all crops for the States, wholly season, particularl}^ in the eastern part of the or in part, within this district as given by the State, is being rapidly overcome. The first Government Crop Report of August 1 are in bale of Arkansas cotton was sold at Pine Bluff each case well above the average and show on August 15. gains in condition ranging from 8 to 14 per The outlook for the tobacco crop in Kentucky cent as compared with the condition on July 1. seems to be excellent. Our correspondents re- The wheat crop in this district has been port a large acreage, with every prospect for a harvested. The yield is above former ex- bumper crop. pectations and correspondents report an aver- Pastures have revived under the influence age weight of probably over 60 pounds to the of recent rains and cattle and young stock are bushel. Preliminary estimates issued by the reported to be in splendid condition. The Department of Agriculture on August 8 apple prospects continue fairly good. The indicate a harvest for the States wholly or in peach crop has developed better than was expart within this district largely in excess of the pected and the fruit now coming to market 1916 harvest, but below the five-year average. seems to be above the average both in size and The oats crop has also been harvested and pre- quality, and hence is bringing attractive prices. liminary estimates indicate an exceptional The minor crops and truck gardens are reyield well above that of 1916 and the five-year ported to be in reasonably good condition for average. this time of the year. Reports on the corn crop continue to be The St. Louis National Stock Yards at Nasatisfactory. A month ago I stated that tional Stock Yards, 111., reports an increase in general rains would seem to assure a bumper receipts of cattle and hogs for the month of crop and from present indications this fore- July as compared to July, 1916, and a decast will be fulfilled. The estimates from the crease in the receipts of sheep and horses and August 1 condition show an increase as com- mules for the same period. The tendency of pared to the estimates from the July 1 condi- the hog market continues to be upward, new Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

708 FEDERAL RESERVE BULLETIN. SEPTEMBER 1.1917. high levels being noted from time to time, with DISTRICT NO. 9—MINNEAPOLIS.. the top price of $17 per hundred for hogs on Large crops are being harvested in Wisconsin August 10. and Minnesota, and very good crops are being The car shortage shows some improvement, threshed in the eastern portions of North the net shortage on July 1, 1917, being over Dakota and South Dakota. Grain yields in 77,000, as compared to surpluses ranging from western North Dakota and eastern Montana 52,000 to 275,000 on this date in former years. are light. Freight movement is slow and is a serious Corn prospects in Wisconsin and Minnesota handicap in many industries. are excellent and are good in eastern South Index figures on the cost of living have re- Dakota and parts of eastern North Dakota. mained approximately stationary for the past This crop over most of the district has been few weeks, somewhat below the high mark reg- quite backward, but during the past two weeks istered at the end of May. has been enjoying very favorable weather. The figures of the gross earnings of the rail- In the eastern half of this reserve district roads operating within this district for the first the money returns to farmers will be large. six months of this year are now available and Crops are uniformly good and prices are exin each case show an increase. It is not ex- cellent. In the western half of the district pected, however, that the figures for the net- the yields are light and in some localities earnings will show the same proportion of in- damage from drought has been very severe. crease, as the cost of all railroad supplies and In the latter area a considerable amount of of labor has mounted steadily from month to stock has been moving out to market at very month. high prices, which has been of considerable Building permits in Louisville, Memphis, and assistance in offsetting the losses on the grain St. Louis for July, 1917, show a decrease as crops. compared to July, 1916, while Little Rock Industrial concerns throughout the district shows a slight increase. Generally speaking, are doing a large business and have orders all building is restricted, due in part to the ahead sufficient to guarantee the employment prohibitive cost of building materials and in of large forces through the remainder of the part to scarcity of labor. year. Country trade is generally good and Postal receipts for July, 1917, show an in- wholesale business is in satisfactory volume. crease as compared to July a year ago for the The coal situation has caused some apprehenlarge cities within this district. sion, but recent steps promise to expedite The labor situation can not be said to be shipments via the Great Lakes, which, if they entirely satisfactory. Strikes and other labor reach sufficient volume, ^1 eliminate the troubles have been reported in a number of danger of a shortage this winter. Coal stocks industries. are light for this season of the year, and because The bond business is still quiet. of high prices the urgent appeal to buy early The commercial paper rate is approximately has not been as effective as was expected. 5 per cent, some of the best names selling a The prices of both hard and soft coal have trifle under that rate, but the majority of the reached record levels and are considerably offerings being at 5 per cent. City banks are advanced over corresponding figures of a year not active in the market, but there seems to be ago. a good demand from country banks. Bank Bankers and business men are optimistic rates to customers range from 5 to 5 J per cent, regarding the outlook and feel that in spite of 5 per cent being the ruling rate. considerable losses, as compared with the Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

SEPTEMBER 1,1917. FEDERAL RESERVE BULLETIN. 709 crops that were in prospect in the earl}/ part keting of many immature animals from the of June, the large money returns which farmers Southwest. The feature of the trade was the are receiving will be sufficient to maintain a promptness with which packers absorbed satisfactory degree of prosperity, while indus- arrivals. Hog prices were the highest ever trial concerns and general business will prob- paid in the month of July and a good many ably go forward into the winter with nothing dry weather hogs were marketed, but met with more than the seasonal fluctuations in volume. poor demand, a wide spread in prices existing The demand upon city banks is heavy, due between common and good grades. to crop moving. Interest rates are very firm. Similar discriminations were made in sheep Larger banks report that their country corre- offerings, the market growing weaker as the spondents will clean up this fall, with very few month progressed. Since the breaking up of exceptions, in spite of adverse agricultural the drouth and the improvement in prospeqts conditions in some localities. for feed production, conditions have improved Considerable speculation exists as to effect materially for the farmers and stockmen of price-control measures upon the handling engaged in finishing live stock for the market. of this fall's grain crop and upon conditions Mining.—Shipments of ore from the at the terminal markets, but the Government's Missouri-Kansas-Oklahoma field showed a demeasures have not yet become sufficiently cline in July over the previous month due to clear to indicate in what respect the situation lower prices for ore and an actual decrease in will be different from that of former years. output occasioned by the gradual shutting down of sheet ground mines which were unable DISTRICT NO. 10—KANSAS CITY. to produce at a profit. Surplus stocks show a Agriculture.—July furnished its full average better position than last year in spite of lower of anxiety and cause therefor, the serious ore prices and the exceedingly high prices for drouth continuing generally until the end of supplies. Operators are concerned as to their the first week in August, resulting in a reduction ability to meet the present wage scale from in corn estimates on August 1 from those of which there are no indications of immediate July 1 of approximately 25 per cent. Heavy relief on account of high cost of living. Small rains in nearly all parts have, however, had a mining camps in Colorado have been unusually most beneficial effect, and it is believed that active and an increased production was reported the estimates of September 1 will lend, much from practically all of them with the exception encouragement. In addition to the improved of those hampered by labor troubles. corn situation, more and more consideration is Oil.—The long predicted advance in the given to the betterment of sorghum grain crops, market quotation for Mid-Continent crude oil large yields of oats, and the reviving alfalfa has been realized, the first since January 12. fields. Irrigated crops are doing unusually The price now quoted is $2 per barrel, a 30 well. Interest now centers in the effort to cent increase and the highest price ever posted secure the planting of a large acreage of wheat in the history of this field. With the total this fall and much attention is being given to Iproduction of Oklahoma and Kansas less than securing the required seed. The ground is in ! 300,000 barrels per day and the trunk pipefine -condition for fall plowing which is being jline companies and the refiners in Oklahoma vigorously pushed. j demanding approximately 400,000 barrels of Live stock.—As predicted in last month's j oil a day, the producer expects even further review, July recorded very heavy receipts of advances and justifies them by general condicattle at every market in the district, the local tions 'and cost of production. Many operators, markets receiving the largest number on record who have closed down on account of the high in the seventh month, the primary cause being price of pipe and cable will now find it possible, high prices, but dry weather forcing the mar- j however, to finance operations and resume Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

710 FEDERAL RESERVE BULLETIN. SEPTEMBER 1,1917. drilling. During the first six months of the Larger and better orders are appearing, while present year Kansas produced more oil than conservatism is still manifest. Groceries and it did during the entire year of 1916, but Okla- kindred lines are active. Manufacturing is in homa showed a decrease due to the decline good volume, and most plants are working to in the older pools. The total production of capacity. On every hand anticipation is high the two States for the period mentioned was for a substantial increase in the fall trade. in excess of 62,000,000 barrels as against Reports for July as compared with July last 59,000,000 barrels for the first half of 1916. year, indicate average increases in both News from the Wyoming and Mid-Continent purchase and payment activities in this disfields is of a highly favorable character, the trict of approximately 2 per cent, while inonly drawback continuing to be the price and debtedness remains practically stationary. limited supply of equipment. A general revival has taken place in the Lumber and construction.—The lumber busi- flour trade and while the heavy rush of business has been unusually quiet even for this sea- ness incident to first crop movements of son of the year, Government and railroad former years is lacking, there is a healthy orders holding prominence. The most inter- general demand from all markets, although esting feature of the market is the fact that inquiries and sales are for smaller lots than prices are holding up in spite of decreasing formerly. Very little is being done in the way demands. Sash and door factories are taking of advance bookings for future shipment. care of set summer trade, but there is little I Most of the flour mills are selling the equivalent activity. Business this fall, however, is ex- of capacity while some are accumulating bookpected to exceed that of other years by a con- ings. Indications point to a somewhat acute siderable margin, volume depending upon crop | need of new supplies in all territories. No production. Reports on valuation of building export business has been reported of late, permits issued make a peculiar showing. Five but liberal Army orders have been received. out of the district's eleven most important There continues to be great confidence in the cities show a loss while six disclose a gain, the rushing business which is to follow the establosses running from 6 to 87 per cent, and the lishment of Government regulations on wheat gains from 11 per cent to the fine showing in and flour. St. Joseph, Mo., of 980 per cent. Dealers in implements report that seasonal Labor.—Labor disturbances are reported lines are moving in excess of previous years, from many quarters and in various lines of with collections good. Optimism as to the fall industry and evidences of unrest would appear trade is general. In spite of the damage done to be on the increase in spite of the fact that by dry weather, resulting in some cancellawages are generally higher and the labor sup- tions, conditions may now be said to be exply inadequate to meet demands. The only ceptionally healthy. The tractor business is encouraging feature is the fact that strikes tremendous. One tractor dealer estimates thus far called have been of short duration as I that there were a hundred dealers in the local a rule, evidencing a willingness to compromise market the first week in August, all interested without seriously crippling the enterprise so in tractors, and declares that the supply was essential to the country in this critical period only about one-tenth of the demand. of its existence. Financial.—There is every evidence of a Mercantile.—Considering the season and substantial increase in the demand for loanable serious conditions which have surrounded crop funds as indicated by the amount of discounts developments, wholesale and retail business in I handled by this bank for its members. The general has been in satisfactory volume. | high point during 1916 in this class of invest- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

SEPTEMBER 1, 1917. FEDERAL RESERVE BULLETIN. 711 ments was $3,500,000, readied early in the 1 bale. Similar advices are received from year. The recent increasing amounts are best parts of west Texas, where the crop is almost shown by the following approximate figures: a complete failure; in fact, one of our corres- June 15, $6,000,000; July 15, $8,500,000; pondents reports in his county alone, wherA August 15, $13,000,000. the normal production is 20,000 bales, that However, while reports of slight increases in even with favorable conditions from now on, discount rates have been reported, these have only about 1,000 bales will be produced. In generally affected the smaller borrowers, rates north and northeast Texas and southern Oklaon commercial paper remaining practically homa the crop is fine, and progress all that stationary. The consensus of opinion is that could be expected. Particularly is this true the forthcoming call of the Comptroller of the in the black-land belt of north Texas. It is Currency will disclose some reduction in bank believed that the crop in the State may equal, deposits as compared with the last preceding but will not likely exceed, three and a quarter call, although the general marketing of wheat million bales. Rains within the last two or may more than offset present indications. three days will undoubtedly improve the situa- Fifteen reporting cities of this district show an tion to some extent. The crop as a whole, average increase of 41.9 per cent in bank based on present prices, will yield a sum conclearings for July over the same month last siderably larger than the returns received last year, the placing of heavy Government orders, year, but the almost entire failure in large high commodity prices and important special areas of the State will produce a serious condifinancial operations tending to swell clearings tion in those sections. at practically every point, and to highest The rice crop in the Orange section was not marks at some centers. affected by the extreme dry weather there, and the average acreage has been planted. A DISTRICT NO. 11—DALLAS. normal seasonal yield of around 100,000 bags There has been a marked and substantial is anticipated. deterioration in crops generally, especially Receipts of cattle from the drought-stricken cotton, within the last 30 days. Conditions sections of the district have been unusually in many sections were somewhat relieved by heavy. As a consequence the class of such as rains in July, but generally over the State the offered was inferior, being hurried to market weather has been very hot and rainfall practi- rather than be fed at the almost prohibitive cally nothing until the last few days in central, prices of feed. Hogs have also been in good west, and southwestern Texas. Cotton is demand and prices continue high. During doing fairly well in north central Texas, splen- August the hog market has established new didly in the north and northeastern part of the records, and prices paid, wore the highest in State, and is up to the average over most of the history of the Fort Worth market. east Texas. The crop in western and south- Exports from Galveston for June (figures western Texas is almost a complete failure, and for July not obtainable) continue heavy, and conditions are very serious in Milam, Wil- for the month the value of such exports was liamson and some adjoining counties. $16,523,473. The value of such shipments in There is considerable movement of cotton in June, 1916, was $10,761,590, an increase of south Texas, and within 30 days receipts $5,766,883. The increase consisted princishould be heavy. The grade of the staple is pally of shipments of wheat and cotton to inferior there, however, and on account of the England, Sweden, and Cuba. A decrease in decreased yield the season will be short. One the exportation of timber is noted, and the of our correspondents in central Texas reports volume is not as heavy as last year. This is that it will take from 20 to 40 acres to produce attributable to the strong domestic demand for Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

712 FEDERAL RESERVE BULLETIN. SEPTEMBER 1,1917. timber brought about by the building of Army Demand for men is greater than the supply, cantonments and wooden ships. The scarcity and there is a real scarcity of efficient workof bottoms has curtailed the exportation of men. The large number of men examined and crude oil for the purpose of refining abroad, claiming exemption, with the probability of and this has naturally eventuated in the ex- other calls in the immediate future, have disportation of more high-grade refined oil and rupted organizations, and resulted in makegreases than ever before. shift forces. The wages paid men for canton- Industries affected by Government require- ment construction, particularly carpenters and ments are unusually active and running on day laborers, are high and have attracted full time. Lines ordinarily dull at this season a large number of men from other fields. The show activity by reason of the inauguration tense situation brought about by the labor disof the annual series of trade excursions, which turbances in the copper mining section of brings a large number of buyers to the larger Arizona has been relieved, and conditions there markets of the district. Dry goods, shoes, are about normal. millinery, and similar goods are in good de- Business with Mexico is increasing slowly mand. Retail trade has been stimulated by with the restoration of normal conditions in midsummer clearance sales. that county. A regular schedule on the Building operations are quiet. This dull- Mexican National Railway is being established ness, however, is more than offset by the can- between Matamoras and Monterey, and trade tonment construction and other Government conditions are expected to improve as the orders. result. The offering of another issue of Treasury Briefly to summarize the business situation certificates of indebtedness, with November 15 in the district and the prospects for the immaturity, was well received in the district, as mediate future, it can be said that the outlook demonstrated in the large oversubscription is decidedly favorable. when the books closed August 9. Deposits, DISTRICT NO. 12—SAN FRANCISCO. reflecting the seasonal decline, are nevertheless at a good figure. There is no diminution in With a generally abundant production of the demand, and offerings with this bank have foodstuffs in the twelfth Federal Reserve disbeen very heavy in August. Rates are firm, trict, two unfavorable elements are conspicuwith little change. Currency orders indicate ous: First, heat and drought in the Northwest the fall crop movement, and are beginning to have considerably curtailed the yield of grain reach large proportions. Clearings, as reported there, wheat and oats crops being reduced in by the principal cities—Austin, Dallas, El Paso, spite of increased acreage, to not over 75 per Fort Worth, Galveston, Houston, San Antonio, cent of last year's production; and, second, the and Shreveport—show an increase of 26 per orange and lemon crops in California suffered cent for July over the same month in 1916. so greatly from the extraordinary heat about The figures were: July, 1916, $153,046,731; the middle of June that the Government report July, 1917, $205,867,982; increase, $52,821,251. of August 1 gives the condition of oranges as Post office receipts at the principal cities of 45 and lemons 55, compared with a 10-year the district for July show a slight decrease— average of 87 for each. The effects upon tho less than 1 per cent—over July, 1916. The citrus fruit of this unusual heat are not all figures were as follows: July, 1916, $324,164; harmful, however, as it has destroj^ed or reduced some of the citrus pests, such as black July, 1917, $323,659; decrease, $505. scale, etc. Experienced growers express the The heavy drain on industrial and commeropinion that, including the next two or three cial forces by the selective draft has created years, the crop results may average nearly as uncertainty and unrest in the labor situation. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

SEPTEMBER 1,1917. FEDERAL RESERVE BULLETIN. 713 great as if the heat had not damaged this year's One possibility of a new supply of meat has crop. been brought to the attention of residents of California's yield of both oats and wheat, the Pacific coast in placing whale meat upon though only 6,000,000 or 7,000,000 bushels the menus of leading clubs and hotels. Its each, has been in excess of that of last year. flavor is not unlike that of beefsteak. Barley is an important California crop and The I. W. W. menace is important in certain shows a large increase, the earlier estimate of sections. Instead of every one, proprietor, a crop of 1,000,000 tons having been more than clerk, and laborer alike, feeling it a patriotic confirmed. This compares with about 550,000 duty to work a little harder and a little longer tons last year. The output of beans, of which in order that we may spare men for waging it is said that California produces one-third of the war to bring peace and safety to the world, all grown in the United States, will reach efforts are made to diminish both hours and 6,480,000 bushels, a 50 per cent increase over output of work. The result is, of course, to last year. hamper the effectiveness of this country's ef- The corn production in this district is rela- forts, which in effect is the same as aiding to tively unimportant. Oregon, Washington, and increase the enemy's effectiveness. Idaho show a prospect of more than 7,000,000 Lumber production in the Northwest is now bushels, which is 100 per cent increase over last much below normal because of labor condiyear. tions. Rice acreage in California is rapidly increas- It is reported from Seattle that by the end ing and this year's product is expected to be of September that city will be the greatest greater than ever before. The yield of pota- builder of wooden ships of all ports of the toes has been generally large. world. There will then be over fifty ways for Reports from Utah and Nevada have indi- the construction of ocean-going wooden vessels, cated unusual production of all crops. as against five a year ago. It is estimated that the yield of grapes will On August 7 Mr. James K. Lynch was exceed that of last year by 10 to 20 per cent, elected governor of the Federal Reserve Bank and that the product of deciduous fruit will of San Francisco, assuming the duties on reach a record total in California, although in August 13. His banking experience admirathe Northwest there will probably bo no in- bly equips him for this important post. In crease over last year. conformity with the ruling of the Federal The total of food products of this district Reserve Board, that a governor should not be will very substantially exceed that of last year, a director, Mr. Lynch has tendered his resignawith possibilities of further increase next year. tion as director. His successor will be elected Lack of clear understanding on the part of by the votes of Group 2 member banks of this farmers of the national and international im- district, banks being divided into three groups portance of large production of foodstuffs hin- according to size for the purpose of voting. ders increase. This is illustrated by an in- As governor, Mr. Lynch becomes ex officio stance in the Northwest where a number of chairman of the General Liberty Loan Comfarmers were found cutting unmatured wheat mittee, the work of which will necessarily abfor forage, upon the ground that they must sorb much of his attention for the time being feed their live stock. In response to the show- both in perfecting the organization for the secing that they could better afford to pay even ond Liberty Loan and in the campaign itself. $50 a ton for hay, the reply was that they had The date for the second Liberty Loan will enough additional wheat to provide all the j shortly be fixed. Meanwhile temporary eertifimoney they needed. i cates of indebtedness are being sold by the Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

714 FEDERAL RESERVE BULLETIN. SEPTEMBER 1,1917. Secretary of the Treasury to provide funds for resources free for handling the next issue. It immediate needs. It is in every way desirable is only in this way that the greatest effectivefor these to be bought by both banks and in- ness may be achieved in the use of our financial dividuals and used later on in payment for resources to aid in the prosecution of the war. Liberty Loan issues. It is equally desirable This district made a splendid achievement in for banks having subscribed on their own ac- subscribing for more than $175,000,000 of the count for the first issue of Liberty bonds to first Liberty Loan. dispose of them to investors so as to leave their Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

SEPTEMBER 1,1917. FEDERAL RESERVE BULLETIN. 715 DISCOUNT OPERATIONS OF THE FEDERAL RESERVE BANKS. During July, 1917, discount operations of the Over 87 per cent of all discounts, including Federal Reserve Banks totaled $460,733,353, collateral notes, discounted during July, was or more than double the total discounts of 15-day paper (i. e., maturing within 15 days the banks for the entire calendar year 1916. from the date of discount with the Federal Of the monthly discounts over 85 per cent, Reserve Banks), less than 3 per cent 30-day or 8395,452,415, were in the form of member paper, over 4 per cent 60-day paper, and about banks7 collateral notes. Almost 64 per cent 5 per cent 90-day paper. Agricultural and liveof these notes were handled by the New stock paper maturing after 90 days but within York bank, which reports the discount during 6 months from date of rediscount with the the month of 111 such notes, aggregating Federal Reserve Banks (so-called 6-month $252,654,805. All the banks, except Atlanta, paper) aggregated $3,310,352, or over 0.7 per Minneapolis, Dallas, and San Francisco, report cent of the month's total discounts. Dura larger volume of collateral notes than cus- ing the 7 months of the present year the tomers' paper discounted for their members; Federal Reserve Banks discounted about Boston, Richmond, Chicago, Philadelphia, $11,516,000 of this class of paper, compared Kansas City, and St. Louis each reporting with $12,634,000 for the corresponding period monthly amounts in excess of 10 millions. in 1916 and $10,921,000 in 1915. Over one-half of these notes, viz, $202,786,193, On the last Friday in July the Reserve Banks were secured by commercial paper, and nearly held $138,460,450 of discounted bills, as against one-half, or $192,666,222, by interim receipts $197,242,135 about the end of June and for Liberty Loan bonds or United States cer- $27,594,000 on the corresponding date in 1916. tificates of indebtedness. The average size of About one-half of the paper on hand were bills all collateral notes discounted by the New maturing within 15 days. The total comprised York Reserve Bank was about $2,276,000, as $39,158,731 of collateral notes secured by against about $268,000 for all the other banks. commercial and bank paper; $13,213,197 of These averages are much smaller than for collateral notes secured hj Liberty Loan bonds June, when some of the largest city members or United States certificates of indebtedness; were accommodated in connection with Liberty $8,167,672 of agricultural paper; $7,181,614 of Loan operations. live-stock paper; $63,768,475 of commercial Total discounts for the month include, beside and industrial paper; and the remainder unthe $395,452,415 of collateral notes, $1,077,607 classified bills, chiefly discounts secured by of trade acceptances handled, largely by the Liberty bonds and nonmember bank paper Boston, Richmond, and St. Louis banks; with member banks' indorsement. Over three- $449,894 of commodity paper discounted fourths of the agricultural paper was held chiefly by the Richmond and Dallas banks, and by the Richmond, Dallas, Chicago, and Minne- $63,753,437 of other customers' paper. apolis banks, and about 87 per cent of the Discounts for the first seven months of the live-stock paper by the Minneapolis, Kansas present year aggregate $1,419,914,522, of City, and Dallas banks. which $1,161,840,406, or nearly 82 per cent, During the month the number of member were collateral notes, while $8,202,341 of the banks increased from 7,657 to 7,681, while total are specified as trade acceptances and the number of discounting members increased $6,198,686 as commodity paper. As compared from 900 in June to 960 during the month with corresponding 1916 figures trade ac- under review. The largest number of accomceptances increased more than fourfold., while modated members is shown for the Richmond commodity paper declined over 37 per cent. district. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

716 FEDERAL RESERVE BULLETIN". SKPTUMBBB 1, 1917. Bills discounted by each Federal Reserve Bank during July, 1917, dibsutrtield bi/ sizes. Over $500 to Over 51,000 to To 5100. Over 5100 to S250. Over 5250 to 1500. 51,000. 52,500. 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 14 §1,375 52 89.349 73 530.861 Ill 596,087 125 5228,361 New York... 50 3,815 80 15.372 133 52j907 111 94,229 211 366,357 Philadelphia 334 15,118 82 14,395 120 49,358 82 66,240 130 241.960 Cleveland 5 376 48 8,041 55 20,701 42 30,553 64 117,767 "Richmond 73 6,725 378 73.379 640 264,952 670 548.721 616 1,062.508 A-tlanta . .. 111 7,992 208 37,382 238 90,592 121 185,055 210 '367,839 Chicago 2 200 36 7,052 75 28.735 117 92.329 274 537,776 St. Louis. . 2 179 28 5,035 91 34,458 81 58,251 87 168.178 "MinneaDolis 17 1.165 100 17,830 213 78!833 323 247,872 485 730.241 Kansas "Citv. . 15 1.425 166 28.104 270 101,317 192 139.555 125 204.729 Dallas... " . .. 20 1,890 409 70,991 470 171.392 321 226.583 253 421.486 San Francisco. 1 77 6 989 17 6,108 43 32,679 113 188,565 Total 6-J4 40,337 1,593 287,919 2,395 930,214 2,214 1,818,154 2.693 4,635.767 Per cent 0.1 0.4 1.4 2.8 7.1 Member banks' collateral notes Over 82,500 to Over 85,000 to Over 510,000. rrotal. $5,000. §10,000. Per Hanks. N be u r m o - f Amount. N be u r m o - f Amount. N be u r m o - f Amount. N be u r m o - f Amount. cent. pieces. pieces. pieces. pieces. Boston. .. .... 344 81,636.979 152 SI,514,537 116 54,106,950 987 S7,624,499 11.6 Now York 378 1.701.156 151 1,261,536 122 6,215,928 1,236 9,711 300 14.9 Philadelphia. 227 1.013.202 78 721,881 45 1.818,734 1.098 3,968,888 6.1 Cleveland 91 400.606 66 638,289 59 2,365; 540 430 3,581.873 5.5 Richmond 512 2.138.722 217 1,851,954 78 1,652.855 3,184 7,599,816 11.6 Atlanta.. . . 179 738.287 69 521i521 27 1,024.775 1.163 2,973.443 4.6 Chicago.. 461 2.155.293 216 1.948.135 173 6.695,790 1,354 11.465,310 17.5 St. Louis 263 1.206,142 97 947,150 71 1,792,013 720 4,211.406 6.5 Minneapolis 254 1,058.213 136 1,003,625 78 1,864,327 1,606 5,002,108 7.7 Kansas City 113 489; 320 27 219,811 31 ' 595,854 939 1,780,115 2.7 Dallas 149 564,104 59 444,389 49 969:510 1.730 2,870,405 4.4 San Francisco 147 576,938 125 860,734 109 2,825,687 561 4,491,777 6.9 Total 3,118 13,709,022 1,393 11,933,562 958 31,925,963 15,008 65,280.938 100.0 Per cent... 21.0 18.3 48.9 100.0 Member banks' collateral notes 44 200.000 40 380,550 560 394,871,865 6-14 395.452,415 Bills discounted during the month of July, 1917 and 1916, and the seven months ending July, 1917 and 1916, distributed by classes. Member banks7 collateral I notes. Secured by Liberty Federal Reserve Bank. B U o n n i d t s e d or Otherwise T ce r p a t d a e n c a e c s - . i C ty o m p m ap o e d r - . d A is ll c o o u th n e ts r . Total. States cer- secured. tificates of indebted- Boston 81,655,000 533,150,985 8322,992 37,301,507 842,430,484 New York 175,86~9, 6"3'"0 76,785,175 13,000 9,698,300 262,366,105 Philadelphia.. 1,691,650 16,515,320 36,874 525,000 3,907,014 22,175,858 Cleveland.. 2,010,000 5,281,000 66,956 3,514,917 10,872,873 RRiicchhmmooEnd ! 1,379,525 25,534,637 281,741 159,289 7,155,786 34,513,978 A'"t lan't a. 612,000 632,500 61,345 72,505 2,839,593 4,247,943 Chicago 3,881,117 18,265,000 90,135 11,375,175 33,611,427 St. Louis 350.000 10,820,000 136,788 19,000 I 4.055,618 15,381,406 Minneapolis.. 2,090)000 1,714,151 12,238 21,400 I 4)968,468 8,806,257 Kansas City.. 2,622,300 11,734,585 40,990 1,739,125 16,137,000 Dallas 125,000 1,187,500 102 152,700 2,717,603 4,182,905 San Francisco 350,000 1,165,340 11,446 4,480,331 6,007,117 Total, July, 1917 j 192,666,222 202,786,193 1,077,607 449,894 | 63,753,437 460,733,353 Total, July, 1916. 199,000 1,525,200 j 18,458,800 20,183,000 Total, January-July, 1917. 1,161,840,406 8,202,341 6,198,686 1243,673,089 1,419,914,522 Total, January-July, 1916. 2,002,200 9,884,600 ! 70,840,100 82,726,900 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

SEPTEMBER 1, 1917. FEDERAL RESERVE BULLETIN. 717 Amounts of discounted paper, including member banks' collateral notes, held by each Federal Reserve Bank on the last Friday in July, 1917, distributed by classes. : Member banks' collat- ; ! era! notes. * Banks. : | m Ag l r p ic a u p l e tu r. - trial paper. b L o i n b d e s r t o y r " I Otherwise d A is l c lo o t u h n e t r s , j | Total. U. S.certiQ-! secured. cates of indebtedness. Boston 88,382,675 $990,000 83,740,000 8617,999 i S13,730,674 New York §150.854 SI,900 6,329.252 5,575,930 2,155,000 4,894,194 j 19,107.130 Philadelphia 131,753 3.853,024 425,650 5,115;500 9,525,927 Cleveland ! 23,737 10.133 i 4,091,834 1.160.000 1,631,000 ,05,722 7,968.426 Richmond ! 2.381,131 204,379 8.109,806 '530.000 2.804,000 351,694 14,381.010 Atlanta ! 672,736 363,092 3.736,929 294,000 531;500 6,315 5.(50:1,572 Chicago 1,389,367 17,240 8;109,841 1,101,117 9,560.499 20.178'. 064 St. Louis 148,447 87,006 4,874,102 481,000 5,905,000 11.,515,068 Minneapolis .' 1,043,043 300,965 5,987,856 770,000 532,800 10,634:664 Kansas City j 250,560 098,581 1,474,052 1,523,000 6,183.432 11.529.625 Dallas 1,523,982 796,038 1,214,459 62,500 350^00 4,946^979 San Francisco 452.002 302,280 7,604,645 300.000 650.000 29,324 I 9.338.311 Total 8.167,672 7?181,614 ! 63,768,475 13,213,197 39,158,731 6,970,761 138,460.450 Percent 5.9 5.2 I 46.0 9.5 28.3 5.1 100.0 Distribution, by sizes, of bills bought in open market by all Federal Reserve Banks during July, 1917, and the sever, months ending July, 1917 and 1916. To $5,000. To $10,000. To §25,000. To 350,000. Acceptances bought in open market. Pieces. Amount. Pieces. Amount. Pieces. Amount. Pieces. Amount. Bankers'acceptances 1,659 34,338,353 835 85,977,522 j1,321 325,951,857 249 810,405,500 Trade acceptances | 21 54,139 16 120,070 | -34 543,965 7 257,307 Total, July, 1917 ! 1,680 j 4,392,492 851 6,097,592 | 1,355 j 26,495,822 I Per cent. Juno, 1917 i 2,297 j 6,053,419 1,497 11,774,481 2,641 46,144,288 j 793 j 34,140,652 May, 1917 1,305 ; 3,571,384 890 7,024,753 1,580 27,835,025 I 442 i 18,681,746 April. 1917 ! 748 i 1,589,086 270 2,147,380 647 13,231,092 i 257 : 11,003,120 March, 1917 389 ! 876,506 175 1,381,029 363 6,976,406 I 171 ! 7,185,125 February, 1917 819 i 2,175,639 777 6,324,018 1,248 22,367,962 I 401 !16,483,974 January, 1917 i 390 i 1,023,210 1,706,069 300 5,238,206 ! 152 i 6,898,412 Total, 7 months ending July, 1917 7,628 ! 19,081,736 I 4,943 36,455,322 j 8,134 ;i48,288,801 j 2,472 ! 105,115,836 Total, 7 months ending July, 1916 j 2,441; 7,305,289; 2,345 19,337,406 j 3,056 _ 52,190,774 ^ I 31,258^735 I To S100,000. Over $100,000. Total. Acceptances bought in open market. Per cent. Pieces. Amount. Pieces. Amount. Pieces. Amount. Bankers' acceptances.. 134 511,000,328 30 85,895,593 4,228 i863,629,153 95.2 Trade acceptances 18 1,643,081 616,350 100 2 3,234,912 4.8 Total, July, 1917. 152 12,643,409 ! 34 6,511,943 4,328 06,864,065 100.0 Percent June, 1917 26,306,940 10,809,917 7,597 135,229,697 May, 1917 181 15,377,503 10,098,085 4,444 82,588,496 April, 1917 87 7,155,097 6,186,816 2,047 41,312,591 March, 1917 6,801,912 i 4,930,660 1,209 28,151,638 February, 1917 180 15,273,481 i 8,012,105 3,474 70,637,179 January, 1917 48 3,891,515 i 1,859,768 1,384 20,617,180 Total, 7 months ending July, 1917 : 1,040 87,449,857 | 266 j 48,409,294 I 24,483 445,400,816 j Total, 7 months ending July, 1916 345 28,296,468 | 137 ! 25,860,097 9,107 164,248,709 1 Of the above amount, bankers' acceptances totaling $56,756,503 were based on imports and exports and $6,872,650 on domestic trade transactions. 2 All of the above trade acceptances were drawn abroad on importers in the United States and indorsed by foreigh banks. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

718 FEDERAL RESERVE BULLETIN. SEPTEMBER 1, 1917.. Acceptances bought in open market and held by Federal Reserve Banks as per schedules on file with the Federal Reserve Board or as reported by the Federal Reserve Banks on dates specified, distributed by classes of accepting institutions. Banker's acceptances. Trade ac- Date. M ba e n m k b s e . r c N o b m e o r n p m t a r n u e i m s e t s - . N b b e o r a n n m S k t e a s m . te - P b r a i n v k a s te . a b F n r b o a d n a r a e n c g i h k g e e n n s - Total. b c m e o p o u a t p g r a e k h n n e t c t e i . n s c T e o p t t a a l n c a e c s - . cies. 1915. Feb. 22 $93,000 $93,000 $93,000 Apr. 5 3,653,000 $7,820,000 $10,000 $110,000 11,593,000 11,593,000 May3 5,038,000 8,189,000 10,000 110,000 13,347,000 13,347,000 June 7 5,242,000 4,516,000 10,000 192,000 j 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 " 26,666 352,000 i 11,129,000 11,129,000 Sept. 6 6,087,000 6,305,000 20,000 472,000 | 12,884,000 12,884,000 Oct. 4 9,000,000 4,898,000 132,000 343,000 i 14,373,000 14,373,000 Nov. 1 8,4.77,000 4,331,000 253,000 204,000 ! 13,265,000 13,265,000 Dec. 6 12,311,000 5,172,000 275,000 396,000 18,154,000 18,154,000 1916. Jan. 3 15,494,000 160,009 362,000 822,000 23,838,000 23,838,000 Feb. 7 15,681,000 876,000 336,000 1,456,000 25,349,000 8489,000 25,838,000 Mar. 6 17,182,000 670,000 408,000 1,781,000 28,041,000 462,000 28,503,000 Apr. 3 21,000,000 573,000 473,000 3,262,000 38,308,000 722,000 39,030,000 Mayl 24,875,000 400,000 585,000 3,430,000 44,290,000 1,477,000 45,767,000 June 5 24,680,000 029,000 644,000 7,007,000 49,360,000 2,208,000 51,568,000 July3 32,989,000 921,000 471,000 11,830,000 64,211,000 3,422,000 67,633,000 Aug. 7 39,695,000 060,000 738,000 13,940,000 73,433,000 4,225,000 77,658,000 Sept. 4 41,413,000 356,000 726,000 12,491,000 74,986,000 3,673,000 78,659,000 Oct. 2 37,798,000 782,000 712,000 9,944,000 70,236,000 2,306,000 72,542,000 Nov. 6 37,770,000 474,000 1,014,000 12,147,000 80,405,000 2,378,000 82,783,000 Dec. 4 47,748,000 232,000 1,630,000 16,069,000 98,679,000 4,487,000 103,166,000 1917. Jan.l 66,803,000 625,000 1,502,000 18,224,000 121,154,000 4,585,000 125,739,000 Feb.o 50,361,000 511,000 972,000 13,775,000 S140,000 88,759,000 4,041,000 92,800,000 Mar. 5 53,288,000 518,000 1,090,000 20,581,000 354,000 107,837,000 2,535,000 110,366,000 Apr. 2 43,979,000 328,000 689,000 16,830,000 200,000 82,026,000 1,144,000 83,170,000 May 7 49,192,000 650,000 236,000 19,177,000 94,000 88,349,000 1,679,000 90,028,000 June 4 69,262,000 611,000 584,000 21,077,000 239,000 118,773,000 3,022,000 121,795,000 June 11 81,196,000 043,000* 946,000 22,604,000 239,000 137,028,000 3,723,000 140,751,000 June 18 103,314,000 776,000 1,296,000 23,860,000 1,301,000 168,547,000 3,611,000 172,158,000 June 25 113,786,000 738,000 2,260,000 31,215,000 3,165,000 196,164,000 4,129,000 200,293,000 July 2 117,555,000 496,000 2,242,000 32,137,000 3,287,000 203,717,000 4,429,000 208,146,000 July 9 117,991,000 260,000 2,549,000 32,484,000 3,095,000 205,379,000 4,923,000 210,302,000 July 14-16 108,597,000 390,000 3,333,000 38,082,000 3,805,000 184,785,000 4,660,000 189,445,000 July 31 112,433,000 107,000 2,564.000 20,782,000 1,087,000 179,973,000 4,242,000 184,215,000 Aug. 15 85, IIS, 000 087,000 2,177; 000 14,137,000 1,345,000 140,S94,000 2,300,000 143,194,000 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

SEPTEMBER 1,1917. FEDERAL RESERVE BULLETIN. 719 Amounts of bills discounted and acceptances and warrants bought by each Federal Reserve Bank during July, 1917, distributed by maturities. 15-day maturities. 30-day maturities. Banks. Accep- Discounts. tances. Warrants. Total. Discounts.! tances. Warrants. Total. . |_ Boston S35.073 960 : 858,522 835,132,482 S2,760.025 : 811,817 $2,771,842 New York 251,205.950 551,065 254,757,015 '428.914 ; 1,303,624 i;732,538 Philadelphia.. 18.S62.985 i 138,000 19.000,985 403,791 ; 1,025,374 1.429.165 Cleveland 8,315.850 | 33.333 8.349.183 275.794 i 1,605 I 277.399 Richmond 28.559,333 j 174.000 S100,000 28.833.333 800,459 ! 1.698,500 ! 2.498,959 Atlanta 1,398.738 i 391,519 1.790.257 235,517 ; 49,000 I 284,517 Chicago 22.612.209 i 3.117 22.015.326 5,183,125 i 241,659 i 5,424,784 St. Louis 12,08001 12,080,017 615,005 i. 615.005 Minneapolis... 3,922,0-10 3.922.040 329.286 :. ! 329.286 Kansas City... 14,555:970 1-1.555.976 183.357 . 183,357 Dallas 1,330,400 ! 09.750 1.100,150 195;304 ; 437,985 j. 633,289 San Francisco. 2,392,721 i 197,200 2.589,921 661,891 ! 454,265 j. 1,116,156 Total. i. 310,779 j 1,617,112 100,000 405,027.891 12,072.528 '•• 5,223,829 j 17,296,357 ! ' j Per cent. , ! 76.7 60-day maturities. 90-day maturities. Banks. Discounts. ! ^anccs Warrants, Total. Discounts. Warrants. Total. Boston 81,583,857 I,568,031 I ! S3,151,888 83,012,317 81,698,984 !. 84,711,301 New York 1,682,261 868,411 ! : 2,550,672 0,048,980 i 22,288,834 \. 28,337,814 Philadelphia.. 940,462 879,227 ! : 1,819,689 1,900,750 6,762,400 .. 8,729,150 Cleveland 1,002,308 352,278 ! \ 1,414,586 1,212,024 5,198,603 j: 6,410,627 Richmond 2,161,691 843,840 1 1 3,005,537 2,770,582 1 202,986 !. 2,973,568 Atlanta 1,602,495 55,300 j ! 1,657,795 897,656 ' 19,650 . 917,306 Chicago 3,805,235 682,736 ! ; 4,487,971 1,851,326 ; 4,200,545 i. 6,117,871 St. Louis 1,730,948 322,000 I : 2,052,948 925,859 I 948,110 !. 1,873,975 Minneapolis... 1,628,948 ! I 1,628,948 1,748,877 ! 13,000 i. 1,761,877 Kansas City... 574,514 303,246 ! ! 877,760 311,488 i 2,297,927 !.. 2,609,415 Dallas .! 725,086 1,444,212 : 2,169,898 1,087,612 ! 500,023 !.. 1,053,635 San Francisco. 1,155,333 2,682,698 j 3,838,031 1,552,485 I 230,941 !.. 1,789,426 Total. 18,053,738 |10,001,985 I 28,055,723 23,385,950 j 44,500,009 !. 67,885,965 Per cent i ! 5.4 12.9 Over 90-day maturities. Total. Per cent. Banks. War- Accept- War- Dis- Accept- War- Discounts. rants. Total. Discounts. ances. rants. Total. counts. ances. | rants. Total. T Boston 8325 I 866,092 800,417 842,430,484 403,446 1 '845,833,930 92.6 7.4 100.0 N Ph e i w la Y de o l r p k hia.. ! 2^ 667^ 424i i2*009*294* 1 1 2 2 6 2 2 , ,3 1 6 7 0 5 , , 1 8 0 5 5 8 0 4 1 7 2 2 , , 5 4 3 2 4 5 ! I : : 2 3 8 3 7 , , 6 3 4 78 8 , , 6 2 3 8 9 3 9 6 1 5. . 9 3 3 8 4 . . 7 1 1 1 0 0 0 0 . . 0 0 Cleveland 1, 870"j 96,068 ! . 102,905 10,872,873 681,887 ! : 16,554,760 05.4 34.6 100.0 Richmond 6,897 j! 950,000 ! 1,171,913 34,513,978 809,332 !S100,000 38,483,310 89.7 10.1 0.2 100.0 Atlanta 221,913 ! 113,537 ',247,943 515,469 ! : 4,703,412 89.2 10.8 100.0 Chicago 115193,,553327 900,000 1,059,532 33,611,427 094,057 1 39,705,484 84.7 15.3 100.0 St. Louis 28,917 15,528 44,445 15,381,400 285,044 I 16,667,050 i 92.3 7.7 100.0 Minneapolis... 1,177,100 1,177,100 8,806,257 13,000 i 8,819,257 ! 99.9 .1 100.0 Kansas City... 511,671 "6GG,"6i8' 1,177,089 16,137,000 207,191 1 19,404,191 i 83.2 16. 8 100.0 Dallas 843,903 100,000 943,903 4,182,905 017,970 6,800,881 I 61.5 38.5 100.0 San Francisco. 244,687 00,000 301,087 6,007,117 031,104 9,038,221 ! 62.3 37.7 100.0 Total.... 3,310,352 ,0,521,130 .:8,831.482 460,733,353 66,864,065 | 100,000 527,697,418 | 87.3 12,7 1 100.0 Percent .: 1.7 100.0 I. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

720 FEDERAL RESERVE BULLETIN. SEPTEMBER 1,1917. Maturities of discounts, acceptances, and municipal warrants held by the Federal Reserve Banks on Friday, July 27, 1917, [In thousands of dollars; i. e., 000 omitted.] 1 to 15 days. 16 to 30 days. Banks. Bills Accept- Munici- Bills Accept- Municidis- ances pal war- Total. dis- ances pal war- Total. counted. bought. rants. counted. bought. rants. Boston 5,835 2,856 8,691 1,859 2,686 4,545 New York 9,914 20.141 50 30,105 998 16,254 17.252 Philadelphia 6,670 1,911 153 8,734 690 796 1'. 486 Cleveland 4,751 3,519 3 8.273 558 2,059 5i 2.668 Richmond.. 5,657 1,921 115 7,693 2,439 927 3,366 Atlanta 1,667 742 2,409 898 214 1.112 Chicago.. 12,294 7,803 20,097 1,648 3,216 1 4,864 St Louis 7,775 1,242 9,017 1,099 905 2,004 MinneapoHs 2,742 175 2,917 870 105 975 Kansas Citv 8,426 1,945 10,371 747 2,420 I 3,167 Dallas 824 666 1,490 496 1.081 1,557 San Francisco 2,876 2,871 5,747 1,597 '257 1.854 Total 69,431 45,792 321 115.544 13,899 30,900 i 51 44,850 Per cent 34.5 13.4 31 to 60 days. 61 to 90 days. Banks. Bills Accept- Munici- Bills Accept- i ! Municidis- ances pal war- Total. dis- ances ! pal war- Total. counted. bought. rants. counted. bought. | rants. Boston 3,491 8,619 12,110 2,546 2,545 5,091 New York 3,143 28,696 31,839 5.052 30,715 35,767 Philadelphia 1,087 3,453 5 4,545 1,069 8,385 9,454 Cleveland 1,825 2,J29 1,023 4,977 830 4,580 20 5,430 Richmond 3,507 270 3,777 2,327 1,088 3,415 Atlanta 1,999 278 2,277 770 76 846 Chicago 5,464 11,195 16,659 569 4 543 * 5 112 St Louis 1' 866 1 017 2 883 720 963 ! 1 683 Minneapolis 3,148 12 3,160 1,933 13 1^946 Kansas City 1 026 6 391 7,417 581 1 769 2 350 Dallas 1,036 570 1,606 1,309 405 1 714 San Francisco 3,585 624 4,209 1,036 69 1,105 Total. 31,177 63,254 1,028 95,459 18,742 55 151 ' 90 73,913 Per cent 28.5 22.1 i Over 90 days. Total. Percentages. Total. Banks. co B u d n i i l s t l - e s d. ; b A a o c n u c c g e e h p s t t . - M r w a p u n a n a t r l i s - c . i- Total. co B u d n i is l t l - e s d. b A a o c n u c c g e e h p s t t - . M r w a p u n a a n t r l i s - c . i- Amount. c P e e n r t. co B u d n i is l t l - e s d.b A a o c n u c c g e e h p s t t - . M r w a p u n a a n t r l i s - c . i- Total. Boston 13,731 16,706 30 437 o i 45 1 54.9 100.0 New York 19,107 95,806 50 114,963 34.3 16.6 83.3 0.1 100.0 C Ph le i v la e d la e n lp d hi . a . 1 4 0 3 1 7 0 9 7 , , 5 9 2 6 6 8 1 12 4 , , 2 5 8 4 7 5 1,1 1 0 5 0 8 2 2 4 1 2 3 2 5 9 5 fi 7.94. 3 3 9 7 . . 3 3 5 6 7 0 . . 5 0 5^2 1 1 0 0 0 0 . . 0 0 Richmond 451 451 14,381 4,206 115 18,702 5.6 76.9 22.5 .6 100.0 Atlanta 270 270 5,604 1,310 6,914 2.1 81.1 18.9 100.0 Chicago 203 203 • 20,178 26,757 46,935 14.0 43.0 57.0 100.0 St. Louis 00 55 11,515 4 127 15,642 4.6 73.6 26.4 100.0 Minneapolis 1,942 1,942 10,635 305 10.940 3.3 97.2 2.8 100.0 Kansas City 749 749 11,529 12,525 24;054 7.2 47.9 52.1 100.0 Dallas 1,282 46 1,328 4,947 2,702 46 7,695 2.3 64.3 35.1 .6 100.0 San Francisco 244 244 9,338 3,821 13,159 3.9 71.0 29.0 100.0 ... ... .. Total 5,210 49 5,259 138,459 195,097 1,469 335,025 Per cent 1.5 100.0 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

721 SEPTEMBEB 1, 1917. FEDERAL RESERVE BULLETIN. Total investment operations, exclusive of purchases of United States certificates of indebtedness, of each Federal Reserve Bank during the months of July, 19.17 and 1916, and the seven months ending July SI, 1917 and 1916. Bills bought in open market. Municipal warrants bought. Bills discounted for j Federal Reserve J?anl-:s. m b e a m nk b s e . r ac B c a e n pt k a e n r c s e ' s. c T e r p a t d a e n c a e c s - . Total. City. State. ot A h D er. Total. Boston S42,430,484 $3,403,446 $3,403.446 --! New York 262,366,105 25,012,534 25,012.534 Philadelphia.. 22,175,858 11,208,840 $263,585 11.472.425 Cleveland 10,872,873 5,412.332 269,555 5; 681.887 Richmond 34,513,978 3,869,332 3,869.332 $100.000 S100.000 Atlanta 4;247,943 504,769 10,700 515,409 Chicago 33.611,427 6,047,050 47,007 6,094,057 St. Louis 15'. 381,406 1,285'. 644 1,285,644 Minneapolis 8,806,257 13,000 13,000 Kansas City... 16,137,000 3,267,191 3,267,191 Dallas.....".... 4,182,905 1 2.617.976 2,617,976 San Francisco. 6,007', 117 I ' 9S7i 039 2,644,065 ; 3,631,104 Total, July, 1917 460,733,353 63,629,100 3,234,912 66.864,065 100.000 100,000 Total, July, 1916 20,183,000 34,802,200 1,773,500 36,575,700 6,553,200 $498,800 $202,500 7,254,500 Total, 7 months ending July, 1917 1,419,914,522 433,371,115 12,029,731 445,400,846 14,464,057 2,040 652,220 15,118,317 Total, 7 months ending July, 1910 82,726,900 156,741,100 7,507,700 164,248,800 59,076,200 3,301,800 377,600 62,755.600 United States bonds and Treasury notes. Total investment operations. Federal Reserve Banks. 1-year 2 per cent. ! 3 per cent. 3 c £ e n p t e . r 4 per cent. T n re o a t s e u s. ry Total. July, 1917. July, 1916. J 1 u 91 l 7 y . , J 1 u 91 ly 6 , . P.ct. P. ct. Boston 845,83,93 §6,586,600 8.4 10.2 N Ph e i w la Y de o l r p k hia.. 31,500,000 31,500,000 I 1 28 3 8 3 , , 8 6 7 4 8 8 , , 0 2 3 8 9 3 1 7 6 , , 3 6 1 5 8 2 , ,4 4 5 0 0 0 5 6 2 . . 1 7 2 1 5 1 . . 9 4 Cleveland $05,000 $1,000,000 1,065,000 17,,619,760 4,019,400 3.2 7.2 Richmond 14,83,310 4.715,000 7.0 7.3 Atlanta 1,100 1,100 ,764,512 i; 927,700 0.9 3.0 Chicago 16,782,000 16,782,000 ,488,084 8,326,800 10.3 12.9 St. Louis 57,800 57,800 10,,724,850 3,762,600 3.2 5.8 Minneapolis.. 2,000 2,000 8,,821,2o7 2,379,700 1.7 3.7 Kansas City.. 7,500 7,500 19,,411,091 869,500 3.5 1.4 Dallas. G,800,881 2.481,900 1.2 3.9 San Francisco. 190,050 j 9,828,871 4/714,400 1.8 7.3 Total, July, 1917 67,000 18,539,050 1,000,000 19,606,650 i 547,304,008 100.0 ! Total, July, 1916 $331,250 10,000 341,250 ! 04,354,450 100.0 Total, 7 months ending I July, 1917 14,047,200 185, "410 18,578,150 $34,250 5,314,000 38,159,040 ;i,918,592,725 Total, 7 months ending July, 1916 34,819,850 3,632,820 4,128,000 50,000 42,630,670 | 352,301,970 United States securities held by each Federal Reserve Bank on July 31, 1917, distributed by maturities. United States bonds with circulation United States securities without circulaprivilege. tion privilege. 2 co p n 1 e 9 s r 3 o 0 c l . s e n o t f ! I o 2 f P p 1 a e 9 n r 3 a c 6 m e -3 a n 8 s t . 3 l p o 1 e a 9 r 1 n 8 c . o e f n t ! j 4 p l 1 o e 9 a r 2 n c 5 o e . f nt 3 s o i f c o p o 1 n e 9 n r 4 b v 6 c o e - e r n 4 - n 7 d t . s 3 p n 1 e - o v r t e c s e , nt 1 1 i i 1 c e 0 n 1 t 1 P J io ? b a i- n e c r e o t n f y t 1 L L 9 o i 4 b 7 a . - n Total. Boston j S750 •. §529,000 S2,194,000 !. §2,723,750 New York j 50 850,000 1,255,500 3,538,000 !. §1,500,000 6,343,550 Philadelphia $100 549,200 2,548,000 . 3,097,300 Cleveland 6,400 407,200 '2,"65i,'o66";S2,"378,"266' 414,800 2,865,000 :. 8,783,160 Richmond 915,100 I 237,000 1,969,000 I. 3,121,100 Atlanta 040,600 21,000 10,300 1,491,000 ' 27,800 2,190,700 Chicago 1,862,500 367,300 2,581,000 1,768,000 427,400 3,361,000 i S400 4,588,840 14,956,440 St. Louis 100 1,080,000 1,153,300 1,444,000 1 31,600 3,709,000 Minneapolis ;....; 332233,,005500 \! 16,200 1,198,180 206,250 114,800 1,340,000 ! 500 3,199,040 KansasCity ! 7,155,850 1 22,240 I 825,000 838,500 1,784,000 I 7,500 10,633,090 Dallas ' 2,450,900 281,500 1,233,600 1,430,000 j 3,800 5,399,800 San Francisco ! 2,428,750 ' 1,500,000 ! 26,000 3,954,750 Total I 15,784,050 1,412,600 7,560,740 : 5,177,450 6,526,400 25,464,000 i 900 6,185,540 68,111,680 Total Uniied States bonds with circulation privilege, 529,934,840. Total United States securities without circulation privilege, 838,176,840. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

722 FEDERAL EESEEVE BULLETIN. SEPTEMBER 1,1917. 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 July 27 to Aug. 24, 1917. ' ' RESOURCES. [In thousands of dollars; i. e., 000 omitted.] 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 - . A t t a la . n- c C a h g i o - . Lo S u t. is. K C a i n ty sa . s Dallas. F S r a a n n- Total. cisco. Gold coin and certificates in vault: July 27 32,685 234,737 41,215 33,342 6,450 7,613 39,744 4,752 17,792 8,522 14,195 19,717 4G0,764 Aug.3 24,884 202,722 22,201 32,747 6,483 7,295 40,353 4,703 16,323 8,711 14,467 18,896 399,785 Aug. 10 , 25,266 216,580 25,443 32,174 6,217 7,139 40,057 4,951 16,629 8,935 13,132 17,326 413,849 Aug.17 26,372 199,222 27,506 31,341 6,257 7,074 40,305 4,728 16,931 8,365 13,460 17,637 399,198 Aug. 24 26,534 229,517 28,739 29,869 6,228 7,007 40,115 4,337 17,092 8,469 13,681 15,153 426,741 Gold settlement fund: July 27 8,811 120,367 20,232 45,443 43,800 7,921 53,086 23,888 11,476 39,140 8,674 22,901 405,739 Aug.3 7,744 255,667 10,482 35,790 22,258 2,339 27,082 20,698 8,995 34,210 3,248 9,640 438,153 Aug. 10 5,811 187,101 13,496 45,989 23,353 3,464 45,666 28,701 8,558 i 31,980 2,042 13,691 409,852 Aug.17 13,855 166,408 22,568 52,928 23,053 2,466 41,252 22,271 7,443 i 38,399 4,212 15,647 410,502 Aug. 24 17,553 117,279 26,867 54,347 30,798 5,684 46,481 25,678 7,871 38,263 6,025 20,221 397,067 Gold with foreign agencies: July 27 3,675 18,112 3,675 4,725 1,837 1,575 7,350 2,100 2,100 2,625 1,838 2,888 52,500 Aug.3 3,675 18,112 3,675 4,725 1,837 1,575 7,350 2,100 2,100 2,625 1,838 2,888 52,500 Aug. 10 3,675 18,112 3,675 4,725 1,837 1,575 7,350 2,100 2,100 2,625 1,838 2,888 52,500 Aug.17 3,675 18,112 3,675 4,725 1,837 1,575 7,350 2,100 2,100 2,625 1,838 2,888 52,500 Aug. 24, 3,675 18,112 3,675 4,725 1,837 1,575 7,350 2,100 2,100 2,625 1,838 2,888 52,500 Gold with Federal Reserve Agent July 27 21,891 173,670 32,905 30,880 7,483 18,072 56,653 14,911 21,366 14,635 15,624 26,103 434,193 Aug.3 24,890 202,670 32,904 30,876 7,483 18,778 59,234 14,891 21,349 14,588 14,095 26,087 467,845 Aug. 10 24,868 218,462 32,813 30,794 8,416 I 18,9S4 59,943 14,871 21,140 14,548 14,076 26,552 485,467 Aug.17 24,846 228,312 32,539 30,747 8,353 i 20,089 64,555 15,971 21,124 14,507 14,056 27,539 502,588 Aug. 24 25,832 206,898 32,161 32,121 8,781 i18,902 70,007 15,953 19,292 14,476 15,636 28,487 488,546 Gold redemption fund: July 27 5,250 450 22 854 " 351 236 390 338 491 170 17 9,067 Aug. 3 500 5,250 450 22 880 363 238 388 528 514 245 12 9.390 Aug. 10 500 5,250 550 13 866 412 242 386 277 513 260 5 9; 274 Aug.17 500 5,250 700 56 854 417 243 385 456 524 395 15 9,795 Aug. 24 500 2,500 700 44 850 602 244 382 589 522 427 15 7,375 Legal tender notes, silver, etc.: July 27 3,952 37,391 1,480 519 200 2,425 2,951 252 478 1,320 127 51,789 Aug.3 3,581 39,314 1,347 428 170 760 3,246 2,681 356 440 1,291 95 53,709 Aug. 10 3,276 39,718 1,601 588 189 759 2,654 2,108 360 396 1,355 113 53,117 Aug.17 3,445 39,632 1,331 629 141 713 3,120 1,760 405 313 1,291 126 52,906 Aug. 24 3,724 39,406 1,204 491 131 653 3,413 1,593 347 334 1,153 91 52,540 Total reserves: July 27 71,512 589,527 99,957 114,931 60,624 36,226 159,494 48,992 53,324 65,891 41,821 71,753 1,414,052 Aug.3 65,274 723,735 71,059 104,588 39,111 31,110 137,503 45,461 49,651 61,088 35,184 57,618 1,421,382 Aug. 10 63,396 685,223 77,578 114,283 40,878 32,333 155,912 53,117 49,064 58,997 32,703 60,575 1,424,059 Aug.17 72,693 656,936 88,319 120,426 40,495 32,284 156,825 47,215 48,459 64,733 35,252 63,852 1,427,489 Aug. 24 77,818 613,712 93,346 121,597 48,625 34,423 167,610 ;50,043 47,291 64,689 38,760 66,855 1,424,769 Bills discounted—members: July 27 13,731 19,107 9,526 7,968 14,381 j5,604 20,178 11,515 10,635 11,529 4,947 9,338 138,459 Aug.3 16,252 11,855 8,999 9,966 14,575 !4,851 19,864 8,330 10,752 10,287 5,730 9,487 130,948 Aug. 10 15,810 13,311 10,216 10,558 14,574 i4,965 16,769 9,191 11,285 12,428 6,113 9,009 134,229 Aug.17 17,016 13,582 13,168 10,231 15,945 !5,434 16,310 9,641 13,197 13,730 6,997 8,695 143,946 Aug. 24 16,959 15,327 9,762 5,950 13,691 ;5,690 12,757 8,657 12,727 12,206 6,942 7,739 128,407 Bills bought in open market: July 27 16,706 95,806 14,545 12,287 4,206 ! 1,310 26,757 4,127 12,525 2,702 3,821 195,097 Aug.3 15,976 73,687 16,557 16,595 4,290 ; 968 23,825 3,844 130 11,756 2,163 4,392 174,183 Aug. 10 16,207 56,510 16,894 18,026 3,626 i 680 19,220 3.201 130 10,739 2,036 2,521 149,790 Aug.17 18,749 56,791 17,630 17,098 3,182 j 668 18,392 2,813 25 11,198 2,531 6,252 155,329 Aug. 24 17,544 49,898 18,608 20,026 2,384 i1,608 19,601 5,461 2,281 11,504 1,985 8,657 159,557 United States Government longterm securities: July 27 530 1,306 549 5,918 1,152 11,609 2,266 1,859 8,849 3,970 2,429 41,135 Aug.3 530 2,805 549 5,918 1,152 704 11,376 2,255 1,859 8,849 3,970 2,455 42,422 Aug. 10 610 1,306 549 i 5,918 1,152 704 11,651 2,255 1,859 8,849 3,970 2,453 41,276 Aug.17 610 2,806 549 i 7,918 1,152 i 704 12,004 2,255 1,859 8,849 3,970 2,453 45,129 Aug. 24 610 2,805 549 i 7,918 1,192 ! 704 12,062 2,255 1,859 8,849 3,970 2,453 45,226 United States Government shortterm securities: July 27 2,194 2,548 2,933 1,969 1,584 4,409 1,524 2,015 1,784 1,430 3,448 35,818 Aug. 3 2,194 3,538 2,548 2,865 1,969 1,491 3,361 1,444 1,340 1,784 1,430 1,500 25,464 Aug. 10 2,194 5,038 2,548 3,083 1,969 3,522 3,630 1,471 1,564 1,789 1,896 3,900 32,604 Aug.17 2,194 3,538 2,548 2,973 1,969 3,522 3,364 1,471 1,554 1,784 1,868 3,767 30,552 Aug. 24 2,194 3,538 2,548 2,918 | 1,969 3,522 3/360 1,465 1,554 1,784 1,868 3,760 30,480 Municipal warrants: July 27 50 158 1,100 i u. 46 1,469 Aug. 3 106 1,097 :. 46 1,249 Aug. 10 131 1,097 !. 46 1,274 Aug.17 131 1,046 i. 46 1,223 Aug. 24 131 1,055 i. 46 1,232 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

SEPTEMBER 1,1917. FEDERAL RESERVE BULLETIN. 723 Resources and liabilities of each Federal Reserve Bank and of the Federal Reserve System at the close of business on Fridays^ July 27 to Aug. 24, 1917—Continued. RESOURCES-Continued. [In thousands of dollars; i. e., 000 omitted.] [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 . - j i m R o ic n h d - . A t tl a a . n- c C a h g i o - . Lo S u t. is. M ap i o n l n is e . - K C a i n ty s . as Dallas. c F S i r s a a c n n o - . Total. Due from other Federal Reserve Banks—net: July 27 6,603 3,062 I 4,967 21,255 161 9,834 111,106 Aug. 3 6,115 9,478 3,884 I 5,227 3,042 31,318 4,029 1,201 8,910 14,746 Aug. 10 4,554 3,373 2,302 1,278 14,069 5,028 2,884 2 1,655 Aug. 17 11,428 6,244 3,299 28,541 595 360 53 5,068 1 11,688 Aug. 24 , 1,416 22,253 586 458 3,C33 1243 Uncollected items: July 27 15,298 43,686 24,247 i 18,577 j11,200 10,660 40,218 9,574 4,901 6,521 10,175 204,756 Aug.3 14,481 43,202 28,782 I 14,272 \11,148 9,343 28,240 11,485 7,010 13,472 6,670 8,953 197,058 Aug. 10 13,931 44,696 27,417 • 16,411 9,843 10,589 32,263 12,356 6,401 10,715 9,255 11,884 205,761 Aug. 17 16,867 52,622 ; 31.522 j 18,06712,275 10,779 39,020 13,450 6,504 9,073 8,246 12,279 230,704 Aug. 24 14,441 58,652 28', 539 ! 16,71412,417 9,421 27,354 10,011 5,076 10,739 8,905 8,118 210,387 Five per cent redemption fund against Federal Reserve Bank notes: July 27 , 400 100 500 Aug. 3 400 100 500 Aug. 10 400 100 500 Aug. 17 400 100 500 Aug. 24 400 100 500 All other resources: July 27 80 271 23 445 1,057 Aug. 3 78 64 16 218 492 Aug. 10 135 28 5 233 425 Aug. 17 10 | 72 1,570 230 1,882 Aug. 24 10 179 84 Total resources: July27 126.574 759,462 151,530 166,855 93,744 61,129 283,920 78,430 73,101 110,700 61,982 110,798 2,021,237 Aug. 3 120', 822858,822 138,078 1159,201 77,540 51,587 255,487 76,912 70,774 108,853 55,511 93,315 1,998,444 Aug. 10 116,702'806,084 1138,706 169,377 74,344 54,206 253,514 81,619 70,326 108,950 56,352 93,226 1,988,263 Aug. 17 139,557 786,275 1153,867 j 177,769 81,262 56,762 274,456 78,415 72,193 110,127 59,293 102,366 2,048,442 Aug. 24 130,205 743,932 |153,483 176,178 80,278 56,850 264,997 78,488 70,788 110,629 62,755 100,699 2,001,140 LIABILITIES. Capital paid in: July 27 5,134 12,067 5.276 6,365 3,444 2,387 7,465 3,267 2,520 3,175 2,757 3,968 57,825 Aug. 3 5,135 12,091 5,277 6,365 3,444 2,387 7,465 3,267 2,523 3,197 2.756 3,974 57,881 Aug. 10 5,135 12,125 5,277 6,365 3,443 2,387 7,513 3,267 2,524 3,203 2,757 3,974 57,970 Aug. 17 5,141 12,119 5.277 6,365 3,443 2,382 7,647 3,261 2,524 3,203 2.757 3,974 58,093 Aug. 24 5,373 12,123 5,277 6,365 3,470 2,507 7,651 3,260 2,5*24 3,203 2,757 3,974 58,484 Government deposits: July27 11,635 16,113 1,915 7,671 18,190 8,242 38,4.46 2,474 6,008 7,374 6,726 18,208 143,032 Aug. 3 6,662 6,338 206 5,497 8,445 3 716 11,318 4,088 3,035 5,712 1,391 4,789 56,765 Aug. 10 4,415 94,601 3.007 2,764 5,903 1,418 13,581 2,231 4,430 3,767 2,354 1,976 14.0,447 Aug. 17 19, 069 33,472 ti, 7606,310 12,530 1,828 11,831 425 5,503 4,297 3,565 6,824 110,110 Aug. 24 .- 9,112 4,126 1,809 6,287 5,578 1,021 11,245 3,071 5,535 3,446 3,042 5,700 59,972 Duo to members—reserve account: July 27 72,885 444,489 67,541 100,942 36,724 25,503 150,831 I 45,580 36,518 65,612 28,956 59,875 1,135,456 Aug. 3 70,603 515,814 66,053 98,344 36,547 25,604 147,992 i 43,066 36,801 65,227 29,504 57,332 1,192,887 Aug. 10 68,393 431,518 65,829 94,601 36,528 25,048 146,205 ! 43,10036,136 66,697 28,915 58,644 1,101,614 Aug. 17 72,252 440,849 03,936 104,848 35,410 25,472 150,288 43,485 36,819 66,072 28,954 62,432 1,130,817 Aug. 24 72,319 420,957 70,694 104,649 37,275 26,740 150,525 43,762 35,800 66,858 29,980 61,570 1,121,129 Due to nonmember banksclearing account: July 27 8,451 96 8,547 Aug. 3 11,879 390 12,269 Aug. 10 10,018 256 10,274 Aug. 17 11,461 176 11,637 Aug. 24 30,924 1,746 263 32,933 Collection items: July 27 10,128 28,976 22,355 14,395 10,660 5,087 18,363 2,987 7,072 3,573 5,512 137,815 Aug. 3 11,073 26,743 24,841 11,307 10,818 4,292 18,976 7,555 3,240 7,055 2,826 3,327 132,053 Aug. 10 10,201 24,046 21,774 12,636 9,347 5,083 15,568 7,593 2,597 6,347 2,860 4,441 122,493 Aug. 17 13,452 30,184 36,617 16,592 10,326 5,654 32,316 9,274 2,952 7,011 2,875 4,663 171,916 Aug. 24 13,745 24,841 26,250 13,729 10,671 4,794 18,226 7,442 2,517 7,283 3,659 4,798 137,955 Due to other Federal Reserve Banks—net: July 27 34,666 12,771 7,180 799 63 1,509 Aug. 3 67,268 534 656 Aug. 10 13,946 14,095 6,205 308 589 Aug. 17 36.615 1,415 4,347 1,523 Aug. 24 15,425 6,488 2,788 2,713 139 | 589 1 Difference between net amounts due from and net amounts due to other Federal Reserve Banks. 2 Net amount due to other Federal Reserve Banks. 3 Overdraft. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

724 FEDERAL RESERVE BULLETIN. SEPTEMBER 1, 1917. Resources and liabilities of each Federal Reserve Bank and of the Federal Reserve System at close of business on Fridays, July 21 to Aug. 24, 1911—Continued. LI ABILITIE S—Continued. [In thousands of dollars; i. e., 000 omitted,] Boston. Y N o e r w k. d P el h p i h la ia - . C la l n ev d e . - m R o ic n h d - . At t l a a . n- 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 S ra an n- Total. Federal Reserve notes in actual circulation: July 27 26,484 213,182 41,425 37,482 17,546 19,910 68,812 18,402 24,269 24,945 18,461 23,097 534,015 Aug. 3 27,016 216,321 41,471 37,688 18,286 20,020 69,700 18,936 24,641 24,834 18,378 23,494 540,785 Aug. 10 28,203 218,478 42,582 38,916 19,086 20,270 70,609 19,223 24,331 24,754 18,877 23,915 549,244 Aug. 17 28,671 220,195 42,638 39,307 19,499 21,426 72,279 20,447 24,377 24,628 21,052 24,263 558,782 Aug. 24 29,323 224,151 42,728 42,358 20,518 21,788 75,537 20,953 24,227 24,344 22,728 573,049 Federal Reserve Bank notes in circulation, net liability: i July 27 2,459 2,459 Aug.3 2,828 2,828 Aug. 10 4,182 4,182 Aug. 17 4,907 4,907 Aug. 24..: 5,473 5,473 All other liabilities, including foreign Government credits: July27 308 1,518 217 3 Aug.3 333 2,368 230 ! 36 I 2,976 Aug. 10 355 1,352 237 j 37 38 2,039 Aug. 17 372 1,380 224 ! 48 95 18 2,180 Aug. 24 333 11,385 237 ! 53 67 46 22 i 12,145 Total liabilities: July 27 126,574 759,462 151,530 1166,855 93,744 61,129 283,920 78,430 73,101 110,700 61,982 110,798 021,237 Aug. 3 120,822 858,822 138,078 :159,201 77,540 51,587 255,487 76,912 70,774 108,853 55,511 93,315 998,444 Aug. 10 |116,702 806,084 138,706 1169,377 74,344 54,206 253,514 81,619 70,326 108,950 56,352 93,226 988,263 Aug. 17 ' 139,557786,275 153,867 1177,769 81,262 56,762 274,456 78,415 72,193 110,127 59,293 102,366 048,442 Aug. 24 130,205 743,932 153,483 1176,178 80,278 56,850 264,997 78,488 70,788 110,629 62,755 100,699 ,001,140 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

725 SEPTEMBER 1,1917. FEDERAL RESERVE BULLETIN. FEDERAL RESERVE NOTES. Federal Reserve note account of each Federal Reserve Bank at close of business on Fridays, July 27 to Aug., 1917. [In thousands of dollars; i. c., 000 omitted.] ! 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 C a h g i- o. . Lo S u t. is. M ap i o n l n is e . - Total. Federal Reserve notes received ' from agent—net: July 27 '• 31,891 i240,170 42,205 39,880 18,155 21,563 73,653 20,368 25,862 25,671 18,943 26,103 584,464 Aug.3 ; 34,890 1239,670 42,204 39,876 18,503 21,749 ! 76,234 20,828 25,845 25,598 18,905 26,087 590,389 Aug. 10 i 34,868 j243,462 43,613 42,794 19,525 21,955 I 75,993 21,908 26,136 25,402 19,019 26,552 601,227 Aug. 17 '3344,884466 224466,331122 45,339 42,747 20)706 ! 22,908 \ 78,945 21,638 26,120 25,335 21,211 27,539 613,646 Aug. 24 !35,822 250,898 45,561 44,121 21,205 j 22,873 81,327 22,720 25,788 24,881 23,624 28,487 627,307 Federal Reserve notes held by bank:, July 27 5,407 780 2,398 609 4,841 1,966 1,593 726 482 3,006 50,449 Aug.3 7,874 23,349 733 2,188 217 ! ,729 6,534 1,892 1,204 764 527 2,593 49,604 Aug. 10 ' 6,665 24,984 1,031 3,878 439.: ,685 5,384 2,685 1,805 648 142 2,637 51,983 Aug. 17 > 6,175 26,117 2,701 3,440 1,207 j 6,666 1,191 1,743 707 159 3,276 54,864 Aug. 24 6,499 26,747 2,833 1,763 687 ! 5,790 1,767 1,561 537 4,093 54,258 Federal Reserve notes in actual i circulation: July 27 26,484 213,182 41,425 37.482 17,546 19,910 68,812 ! 18,402 24,269 24,945 18,461 23,097 534,015 Aug.3 ; 27,016 216,321 41,471 37', 688 18,286 i 20,020 69,700 I 18,936 24,641 24,834 18,378 23,494 540,785 Aug. 10 ' 28,203 218,478 I 42,582 38,916 19,086 I 20,270 70,609 I 19,223 24,331 24,754 18,877 23,915 549,244 Aug. 17 2ou8 ,6«7Ti1 2no2n0 ,1i9n5: 4AO2 ,C6O3Q8 39,307 19,499 j 21,426 72,279 i 20,447 24,377 24,628 I 21,052 24,263 558,782 Aug. 24 29,323 224,151 42,728 42,358 20,518 i 21,788 75,537 I 20,953 24,227 24,344 22,728 24,394 563,049 Gold deposited with or to credit of i Federal Reserve Agent: ! July 27 21,891 173,670 32,905 30,880 7,483 i 18,072 56,653 I 14,911 21,366 14,635 15,624 26,103 434,193 Aug.3 24,890 202,670 32,904 30,876 7,483 : 18,778 59,234 j 14,891 21,349 14,588 14,095 26,087 467,845 Aug. 10 24,868 218,462 32,813 30,794 8,416 : 18,984 59,943 j 14,871 21,140 14,548 14,076 26,552 485,467 Aug. 17 24,846 228,312 32,539 30,747 8,353 20,039 64,555 ! 15,971 21.124 14,507 14,056 27,539 502,588 Aug. 24 25,832 206,898 | 32,161 32,121 8,781 ! 18,902 70,007 15,953 19,292 14,476 I 15,636 28,487 488,546 Amount of commercial paper delivered to Federal Reserve Agent: July 27 10,116 77,860 9,301 9,069 18,389 3,498 : 17,199 !5,462 4,496 :11,099 4,175 1 170,664 Aug.3 10,115 39,202 9,303 9,076 18,815 2,978 . 17,199 |5,952 4,496 !11,337 5,005 j ; 133,478 Aug. 10 10,149 26,706 10,804 12,000 18,150 2,978 16,244 !7,044 4,996 !11,289 5,228 ! i 125,588 Aug. 17 10,164 18,877 12,805 12,618 19,127 2,978 ! 14,581 I5,670 4,996 !10,861 8,034 I ' 120,711 Aug. 24 10,164 44,644 13,406 13,508 16,075 3,978 i 11,509 I 6,772 6,496 j11,982 8,130 ! j 146,664 ! Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

726 FEDERAL RESERVE BULLETIN. SEPTEMBER 1, 1917. Federal Reserve note account of each Federal Reserve Agent at close of business on Fridays, July 27 to Aug. %4 1917. f [In thousands of dollars; i. e.. 000 omitted.] B to o n s- . Y N o e r w k. P p d h h e i i l l - a a . - C la le n v d e . - m R o ic n h d - . la A n t t - a. c C a h g i- o. Lo S u t. is. a M p i o n l n is e . - i K C a i n ty sa . s Dallas. c F S i r s a a c n n o - . Total. FEDERAL RESERVE NOTES. Received from Comptroller: Juiy27 55,630 453,160 66,900 52,000 32,980 37,180j106,220 31,100 38,640 42,720 36,920 29,660 983,160 Aug. 3 55,680 453,160 66,900 52,000 32,980 37,180j106,220 31,100 38,640 42,720 36,920 29,660 983,160 Aug. 10 62,680 459,760 66,900 54,000 34,080 37,180,108,820 31,100 38,640 42,720 36,920 30,160 1,002,960 Aug. 17 62,680 459,760 66,900 64,000 35,040 37,180 112,060 32,500 38,640 42,720 36,920 31,160 1,019,560 Aug. ^4 62,680 466,160 71,500 64,000 35,840 37,1801112,000 33,700 38,640 42,720 42,920 32,160 1,039,560 Returned to Comptroller: July 27 10,839 85,270 10,195 6,180 11,735 6,877 2,667 5,912 6,188 7,609 9,516 3,557 166,545 Aug.3 11,290 87,470 10,196 6,184 11,787 6,931 2,686 5,932 6,205 7,682 9,554 3,573 169,490 Aug. 10 11,312 87,778 10,287 6,266 11,915 7,025 2,927 5,952 6,414 8,038 9,775 3,608 171,297 Aug. 17 11,934 88,028 10,561 6,312 12,034 7,172 3,216 6,472 6,630 8,105 9,854 3,621 173,939 Aug. 24 11,958 88,342 10,939 6,439 12,235 7,707 3,433 6,490 6,962 8,559 10,071 3,673 176,808 Chargeable to Federal Reserve Agent: July 27 44,841 367,890 56,705 45,820 21,245 30,303 103,553 25,188 32,452 35,111 27,404 26,103 816,615 Aug. 3 44,390 365,690 56,704 45,816 21,193 30,249 '103,534 25,168 32,435 35,038 27,366 26,087 813,670 Aug. 10 51,368 371,982 56,613 47,734 22,165 30,155 1105,893 25,148 32,226 34,682 27,145 26,552 831,663 Aug. 17 50,746 371,732 56,339 57,688 23,006 30,008 1108,844 26,028 32,010 34,615 27,066 27,539 845,621 Aug. 24 50,722 377,818 60,561 57,561 23,605 29,473 108,627 27,210 31,678 34,161 32,849 28,487 862,752 In hands of Federal Reserve Agent: July 27 12,950 127,720 14,500 5,940 3,090 8,740 29,900 4,820 6,590 9,440 8,461 232,151 Aug. 3 9,500 126,020 14,500 5,940 2,690 8,500 27,300 4,340 6,590 9,440 8,461 223,281 Aug. 10 16,500 128,520 13,000 4,940 2,640 8,200 29,900 3,240 6,090 9,280 8,126 230,436 Aug. 17 15,900 125,420 11,000 14,941 2,300 7,100 29,899 4,390 5,890 9,280 5,855 231,975 Aug. 24 14,900 126,920 15,000 13,440 2,400 6,600 | 27,300 4,490 5,890 9,225 235,445 Issued to Federal Reserve Bank, I less amount returned to Federal Reserve Agent for redemption: July 27 31,891 240,170 42,205 39,880 18,155 21,563 73,653 20,368 25,862 25,671 18,943 26,103 584,464 Aug.3 34,890 239,670 42,204 39,876 18,503 21,749 76,234 20,828 25,845 25,598 18,905 26,087 590,389 Aug. 10 34,868 243,462 43,613 42,794 19,525 21,955 75,993 21,908 26,136 25,402 19,019 26,552 601,227 Aug. 17 34,846 246,312 45,339 42,747 20,706 22,908 78,945 21,638 26,120 25,335 21,211 27,539 613,646 Aug. 24 35,822 250,898 45,561 44,121 21,205 22,873 81,327 22,720 25,788 24,881 23,624 28,487 627,307 Collateral held in joint custody of Federal Reserve Bank and Agent, as security for outstanding notes: Gold coin and certificates on hand— July 27 18,210 164,705 4,220 8,820 3,441 3,353 14,102 2,370 11,110 230,331 Aug.3 21,210 193,705 4,220 8,816 3,442 3,353 14,102 2,370 11,110 262,328 Aug. 10 21,210 207,805 4,220 8,586 3,442 3,353 14,102 2,370 12,610 277,698 Aug.17 21,210 217,905 4,220 8,582 3,441 3,353 14,102 2,370 12,610 287,793 Aug. 24 22,210 196,805 4,220 10,007 3,338 3,353 14,102 2,370 12,610 269,015 In gold redemption fund- July 27 1,681 2,025 2,060 483 1,051 443 718 1,014 1,205 1,010 913 21,568 Aug. 3 1,680 8,965 2,325 2,060 483 1,996 424 898 997 1,158 981 897 22,864 Aug. 10 1,658 10,657 2,234 2,208 416 1,902 393 878 1,288 1,118 1,062 862 24,676 Aug. 17 1,636 10,407 2,460 2,165 853 1,858 374 858 1,272 1,077 1,242 849 25.051 Aug. 24 1,612 10,093 2,362 2,114 781 1,324 840 940 1,046 2,822 1,497 25,780 With Federal Reserve Board- July 27 2,000 26,660 20,000 7,000 13,580 56,210 10,840 6,250 11,060 3,504 25,190 182,294 Aug.3 2,000 26,359 20,000 7,000 13,340 58,810 10,640 6,250 11,060 2,004 25,190 182,653 Aug. 10 2,000 26,359 20,000 8,000 13,640 59,550 10,640 5,750 11,060 404 25,690 183,093 Aug.17 2,000 25,859 20,000 7,500 14,740 64,181 11,760 5,750 11,060 204 26,690 189.744 Aug. 24 2,000 25,579 20,000 8,000 14,240 69,658 11,760 4,250 11,060 204 26,990 193,741 Commercial paper required, minimum i— July 27 10,000 66,500 9,300 9,000 10,672 3,491 17,000 5,457 i 4,496 11,036 3,319 150,271 Aug.3 10,000 37,000 9,300 9,000 11,020 2,971 17,000 5,937 ! 4,496 11,010 4,810 122,544 Aug. 10 10,000 25,000 10,800 12,000 11,109 2,971 16,050 7,037 I 4,996 10,854 4,943 115,760 Aug.17 10,000 18,000 12,800 12,000 12,353 2,869 14,390 5,667 4,996 10,828 7,155 111,058 Aug. 24 10,000 44,000 13,400 12,000 12,424 3,971 11,320 6,767 I 6,496 10,405 7,988 138,771 Total- July 27 31,891 240,170 42,205 39,880 18,155 21,563 73,653 25,862 25,671 18,943 26,103 584,464 Aug.3 34,890 239,670 42,204 39,876 18,503 21,749 76,234 20,828 25,845 25,598 18,905 26,087 590,389 Aug. 10 34,868 243,462 43,613 42,794 19,525 21,955 75,993 21,908 26,136 25,402 19,019 26,552 601,227 Aug.17 34,846 246,312 45,339 42,747 20,706 22,908 78,945 21,638 26.120 25,335 21,211 27,539 613,646 Aug. 24 35,822 250,898 45,561 44,121 21,205 22,873 ! 81,32722,720 25,788 24,881 23,624 28,487 267,307 i For actual amounts see item "Commercial paper delivered to Federal Reserve Agent" on page 725. 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727 SEPIEMBEB 1,1917. FEDEBAL BESEBVE BULLETIN. EARNINGS ON INVESTMENTS OF FEDERAL RESERVE BANKS. Average amounts of earning assetsheld by each Federal Reserve Bank during July, 1917, earnings from each class of earning assets, and annual rales of earnings on the basis of July, 1917, returns. Average balances for the month of the several classes of earning assets. Banks. Bills dis- Bills bought counted in open I Municipal Total. members. market. i warraIlts' Boston $15,957,728 §16,332,064 i 32,723,750 S35,013,542 New York... 31.245,286 98,304,074 8,209,485 $249,336 138,008,181 Philadelphia. 13' 852,692 12,401,445 3,097,300 158,364 29,509,801 Cleveland 7,768,822 10,934,816 8,777,870 1,237,022 28,718,530 Richmond 13,127,263 5,208,280 3,121,100 50,4S4 21,507,127 Atlanta 4,530,617 1,466,792 2,445,087 435 8,442,931 Chicago 19,548,953 28,775,366 16,654,994 152,625 65,131,938 St. Louis , 9,030,886 4,363,285 \ 3,760,090 145,486 17,299,747 Minneapolis.. 10,301,700 744,600 j 3,529,900 14,576,200 Kansas City... 8,645,964 12,541,200 !10,629,057 42,669 31,858,890 Dallas 4,690,962 2,043,860 5,396,000 31,992 12,162,814 San Francisco. 9,096,242 5,587,655 5,184,266 170,674 20,038,837 Total.... 147,797,115 198,703,437 73,528,899 2,239,087 422,268,538 Earnings from— Calculated annual rates of earnings from— Banks. B co m i b l u l e e s n r m s t d e . - i d s- i m b n o B a u o r il k g p l e h e s t n t . U s S e t n t i c a e i u t t s e e r . i s d - p M r a a l u n n w t i s c a . i r - - Total. co m b B d u e e i i n s r l m l t s - e s . - di m b n o B a o u r i p l k g l e h e s t t . U s S t e n t i c a e i u t t s e e r . i s d - M r w a ip u n a a n t r s l i - c . - Total. Per Per Per Per Per . Boston S50,510 $45,966 87,278 $103,754 ce 3 n .7 t 3 . ce 3 n . t 3 . 1 I i ce 2. n 9 t 9 . cent. cen 3 t . . 34 New York.... 89,361 270,724 22,200 $657 382,942 3.36 3.24 j 3.18 3.10 3.26 Philadelphia. 43,877 33,766 7,828 526 85,997 3.72 3.20 2.97 3.91 3.43 Cleveland 24,740 29,094 19,804 3,818 77,456 3.75 3.13 2.66 3.63 3.18 Richmond 43,709 13,526 6,917 152 64,304 3.92 3.06 2.61 3. 54 3.52 Atlanta 15,925 4,145 5,661 2 25,733 4.14 3.33 2.73 3.96 3.59 Chicago 63,540 75,936 37,670 334 177,480 3.83 3.11 2.90 3.08 3.27 St. Louis 28,971 11,836 8,599 412 49,818 3.77 3.19 2.69 3.33 3.39 Minneapolis.. 37,670 1,936 7,819 47,425 4.31 3.06 2.61 3.83 Kansas City.. 31,270 34,465 20,231 81 86,047 4.26 3.23 2.24 2.25 3.18 Dallas 17,262 6,843 11,331 84 35,520 4.42 4.01 2.54 3.17 3.51 San Francisco 33,046 16,509 11,441 424 61,320 4.28 3.48 2.60 2.93 3.61 Total... 479,881 544,746 166,779 6,490 ! 1,197,896 3. 82 3.23 2.67 3.40 3.34 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

728 FEDERAL RESERVE BULLETIN. SEPTEMBER 1,1017. GOLD IMPORTS AND EXPORTS. Gold imports and exports into and from the United States. [In thousands of dollars—i. e., 000's omitted.] Total corresponding period during 1916. Ore and base bullion United States Mint or assay office bars Bullion, refined. United States coin Foreign coin Total EXPORTS. Domestic: Ore and base bullion United States Mint or assay office bars Bullion, refined Coin Total Foreign: Bullion, refined Coin Total Total exports Excess of gold imports over exports since Jan. 1, 1917 §243,196 Excess of gold imports over exports since Aug. 1, 1914 1, 111, 958 DISCOUNT RATES. Discount rales of each Federal Reserve Bank in effect August 29, 1917. Maturities. 1 Discounts. Trade acceptances. ! Q . om _ [ modity Within 15 SecuredbyU. Agricul- jpaper madays, in- S. certificates tural | turing m cl e u m di b n e g r d 1 a 6 y t s o , i 6 n 0 - d 6 a 1 y t s o , i 9 n 0 - n o e f s s i n o d r e L b i t b e e d r - - an s d to l c i k ve- da T y o s , 6 i 0 n- d6a1 ytso, in9nn 0- widthaivns .90 banks' clusive. clusive. ty Loan paper clusive. clusive. collateral Bonds. With- over 90 notes. in 90 days. days. Boston 4 4 New York *.... 4 4 C Ph le i v la e d la e n l d phia... 4 4 4 4i ;l f Richmond 4 4 31 Atlanta 4 31 31 Chicago 3 3.V 4 4 31 31 St. Louis 4 4 3-1 31 Minneapolis... 3 4 4 41 Kansas City... 34 4i 41 4 Dallas 31- 4 41 San Francisco. 35 4 H 1 Rate of 2 to 4 per cent on member banks' 1-day collateral notes in connection with the loan operations of the Government. a 3 per cent for member banks' collateral notes if secured by United States certificates of indebtedness. 3 3 per cent for member banks' collateral notes if sosurod by United States bonds, notes, or certificates of indebtedness. NOTE.—Rate for bankers' acceptances, 2\ to 4 per cent. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

INDEX. Acceptances: Informal rulings of the Board: Page. Distribution of, by classes, maturities, etc.. 718-721 Bankers' acceptances drawn against shipment Drafts and bills up to 100 per cent 658 of goods from a corporation to its agent 690 Growth of the acceptance business 664 Conversion of a State bank into a national bank. 690 Trade acceptance inquiry by Board 657 Paper secured by chattel mortgage on cattle... 690 Assets and liabilities of leading banks of issue, state- Purchase of bank's own acceptances 691 ment showing 681, 682 Loans on real estate 691 Business conditions throughout the Federal Reserve Custody of gold, lawful money, and Federal districts 698-714 Reserve notes 691 Cattle raisers, loans to 659 Law department: Charters issued to national banks during month 678 Deductions in determining reserves 692 Charts showing course of dollar and sterling ex- Private bankers as members 693 change since 1914 688, 689 Section 22 of the Federal Reserve Act 694 Check clearing and collection: Acceptances of member banks 696 Development of 660-663 Powers of State banks which become members. 696 Operations during month 680 Laws of Washington authorizing national banks Commercial failures reported 677 to act as trustee 697 Discount operations of the Federal Reserve Banks. 715 Loans to cattle raisers, suggestions to banks regard- Discount rates in effect 728 ing 659 Dollar and sterling exchange rates 683-687 Earnings on investments of Federal Reserve Banks. 727 National-bank notes issued, redeemed, etc., during Export licenses in the foreign trade 672-677 year through office of Comptroller of the Cur- Federal Reserve Agents' fund, transactions under.. 680 rency 667 Federal Reserve Bank of New York, letter of, regard- National banks: ing banking cooperation in control of gold 659 Charters issued to during month 678 Federal Reserve Banks: Condition of, on June 20, as shown by Comp- Earnings on investments of 727 troller's call 665 Resources and liabilities of 722-724 Pennsylvania, law passed by legislature of, permit- Federal Reserve districts, description and popula- ting Stafe institutions to join system 666 tion of 668-671 Proclamation by President on export embargo 672 Federal Reserve notes: Resources and liabilities of Federal Reserve Banks. 722 Accounts of Federal Reserve Banks and Agents. 725 Review of the month 651-658 Issued, redeemed, etc., during year through State banks: office of Comptroller of the Currency 667 Admitted to system during month 659 Fiduciary powers granted to national banks 678 Cooperation of State institutions in New York Foreign banks of issue, comparative statement showwith respect to gold control 659 ing condition of 681, 682 Law passed by Legislature of Pennsylvania per- Foreign trade, export license forms for use in 674-677 mitting State institutions to join system 666 Gold imports and exports 728 Why a southern State bank has entered the Gold settlement fund, summary of transactions.. 678-680 Federal Reserve System 667,668 Governor and vice governor of Federal Reserve Board redesignated for ensuing year 659 Treasury certificates of indebtedness, new issues of. 663 i Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis