Federal Reserve Bulletin, 1917-12

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

FEDERAL RESERVE BOARD. EX OFFIGIO MEMBERS. W. P. G. HARDING, Governor. PAUL M. WARBURG, Vice Governor. WILLIAM G. MCADOO, FREDERIC A. DELANO. Secretary of the Treasury, Chairman. ADOLPH 0. MILLER. CHARLES S. HAMLIN. JOHN SKELTON WILLIAMS, Comptroller of the Currency. H. PARKER WILLIS, Secretary. SHERMAN ALLEN, Assistant Secretary and Fiscal Agent. M. G. ELLIOTT. Counsel. 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 ten names at a subscription price of $1 per annum. No complete sets of the Bulletin for 1915 are available. Bound copies of the Bulletin for 1916 may be had at $5 per copy. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

SECOND EDITION OF THE INDEX DIGEST. The Federal Reserve Board has had prepared, primarily for its own use, a second edition of the Index Digest of the Federal Reserve Act, by Hon. Charles S. Hamiin, member of the Federa! Reserve Board, the first edition of which was published in 1915. While the edition is primarily for the use of the Board, enough copies will be printed to supply the demand of banks and others who may desire to purchase them. Those who desire copies should at once remit $1 (bound in paper) or $1,25 (bound in cloth) to the Federal Reserve Bank of the district in which the subscriber is resident. Copies of the edition, when published, will be transmitted to the Federal Reserve Bank for distribution. in Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

TABLE OF CONTENTS. Page. .Review of the month 917 War-savings certificates 925 Loans to directors of banks under section 22 of act 929 Income from Liberty bonds exempt from taxation 930 Standardizing commercial paper 930 Use of coin-counting machines 930 Statement of Secretary of the Treasury regarding nonconiiscation of bank deposits 931 Use of gold coins as holiday gifts discouraged , 931 Success of the second Liberty Loan 932 State banks and trust companies admitted to the system during month 933 Letters of State banking department of Oregon regarding State bank membership 934 By-laws of branch banks 934 Credit needs of farmers. 937 Instructions for handling coupons from United States bonds 938 Bank failures during past 3 years compared with preceding 33 years 939 Commercial failures reported 940 Federal Reserve notes and national-bank notes issued and redeemed 941 Banks authorized to accept up to 100 per cent of capital and surplus 941 Fiduciary powers granted to national banks 941 New national-bank charters issued 942 Principal changes in the condition of leading European banks of issue since outbreak of the war 942 Charts showing 944,945 Gold-settlement fund transactions 947 Operations of the Federal Reserve clearing and collection system 948 Informal rulings of the Federal Reserve Board 949 Law department 952 Business conditions throughout the Federal Reserve districts 958 Discount operations of the Federal Reserve Banks 976 Acceptances 979 Resources and liabilities of the Federal Reserve Banks 983 Federal Reserve note account of Federal Reserve Banks and agents 985 Earnings on investment of Federal Reserve Banks 987 Gold imports and exports 988 Discount rates in effect 988 Index to volume 3 of Bulletin 989 IV Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FEDERAL RESERVE BULLETIN VOL. 3 DECEMBER 1, 1917. No. 12 REVIEW OF THE MONTH. Loan $3,808,766,150, subscriptions by Federal Reserve districts being as follows: On October 1 1917, the Secretary of the ? Treasury invited subscriptions The second Lib- Per cent erty Loan. at par and accrued interest, ; T ti o o t n a s l r s e u c b e s iv cr e i d p . - Quota. i s o u f b o sc v r e i r p - from the people of the United ' tion. States, for $3,000,000,000 of United States of Boston 8470,950,050 $300,000,000 59 America 10-25 year 4 per cent convertible New York 1,550,453,450 900,000,000 72 Philadelphia 380,350,250 250,000,000 52 gold bonds, of an issue authorized by act of Cleveland 48(5,100,800 300,000,000 62 Richmond 201,212,500 120,000,000 68 Congress approved September 24, 1917, the Atlanta 90,695,750 80,000,000 13 Chicago 585,853.350 420,000,000 39 right being reserved to allot additional bonds St. Louis 184,280;750 120,000,000 54 Minneapolis 140.932,(550 105,000,000 34 up to one-half the amount of any oversub- Kansas City 150; 125,750 120,000,000 25 scription. Final returns received from the S D a a n l la F s rancisco 2 7 9 7 2 , ,6 8 7 9 1 9 , , 1 8 5 5 0 0 2 7 1 5 0, , 0 0 0 0 0 0 , , 0 0 0 0 0 0 3 4 9 twelve Federal Reserve banks, and made public Total ! 4,617,532,300 3,000,000,000 I 54 on November 9, show that the total subscriptions were $4,617,532,300—an oversubscrip- Every Federal Reserve district, as thus tion of $1,617,532,300, or approximately 54 shown, exceeded its quotum of the per cent of the amount offered. This is a $3,000,000,000 of bonds offered. The full greater oversubscription than was received in amount of the subscription was not accepted the case of the first Liberty Loan, when on this occasion just as on that of the first $2,000,000,000 of bonds were offered, and a loan. In speaking of the amount taken the subscription of more than $3,000,000,000 was Secretary of the Treasury says: "Having received. It is estimated by the Treasury De- announced that only one-half of the overpartment that the second Liberty Loan was subscription would be accepted, the Govsubscribed for by approximately 9,400,000 ernment must, of course, faithfully observe individuals, and in this number 9,306,000, or that basis. Whenever loans are offered to 99 per cent, subscribed in amounts rang- the public, the banks and the public ading from $50 to $50,000, the aggregate of just themselves both consciously and unsuch subscriptions being $2,436,469,350. jconsciously to the basis of the offering, and The fact that so large a number sub-1 it would be extremely unwise to alter it after scribed for bonds is significant of the wide- |the subscriptions have been received." The spread interest of the people in the purposes Secretary adds that the impression which has of the war, and of their determined support of prevailed in some quarters "that another the Government in all measures required for offering of Government bonds will be made in its vigorous prosecution. In conformity with j the month of January, 1918/' is without founthe original announcement, the Treasury ac- | dation, as, "in view of the large oversubscripcepted 50 per cent of the oversubscriptions, jtion of the second Liberty Loan" * * * making the total issue of the second Liberty! this will not be necessary." 917 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

918 FEDERAL RESERVE BULLETIN. DECEMBER 1,1917. A definite plan with respect to the new war- indebtedness now outstanding were accepted savings certificates, whose issue in payment at par with adjustment of accrued War-savings J *.- interest. Allotments were made in the order t"f tes was announcec*- some time ago, that subscriptions were received. As authorhas now been worked out and ized by the war revenue act of October 3, 1917, placed before the country in a circular issued collectors of internal revenue will receive cerby the Treasury Department, under date of tificates of this issue at par and accrued in- November 15. The sum of such war-savings terest, under rules and regulations to be precertificates outstanding is not at any one time scribed by the Secretary of the Treasury, in to exceed in the aggregate $2,000,000,000 (ma- payment of income and excess profits taxes turity value). The amount of war-savings when payable at or before the maturity of the certificates sold to any one person at any one certificates, but these certificates will not be time is not to exceed $100 (maturity value), accepted in payment of or on account of bond and it is not to be lawful for any one person at subscriptions. The amount of the first issue of any one time to hold war-savings certificates certificates so sold is $691,622,000. to an aggregate amount exceeding $1,000. The certificates will be exempt both as to The certificates will be obligations of the principal and interest from all taxation now or United States only when one or more stamps hereafter imposed by the United States, any have been affixed thereto. Each war-sav- State, or any of the possessions of the United ings certificate will have spaces for 20 war- States, or by any local taxing authority, exsavings certificate stamps, and each stamp cept estate or inheritance taxes, graduated will have a maturity value of $5 on January 1. additional income taxes C' surtaxes''), and 1923, which will accordingly give each such excess profits and war profits taxes, now or certificate, when bearing its full complement hereafter imposed by the United States upon of such stamps, a maturity value of $100 on the income or profits of individuals, partnerthat date. The details of the new issue are ships, associations, or corporations. The infurnished on page 925 of this Bulletin. terest on an amount of bonds and certificates Provision has been definitely made for a plan authorized in the act of September 24, 1917, designed to relieve any possible the principal of which does not exceed in the congestion or disturbance of aggregate $5,000 owned by any individual, the money market such as partnership, association, or corporation, is also might be caused by the payment of taxes due to be exempt from the graduated income between June 15 and June 25, estimated to taxes. After allotment and upon payment. amount to over $2,000,000,000. Under the Federal Reserve Banks will issue interim authority of the war loan act, approved Sep- receipts pending delivery of definitive certifitember 24, 1917, the Secretary of the Treasury cates. Qualified depositaries are permitted announced that he would receive subscrip- to make payment by credit for certificates tions at par and accrued interest for a limited allotted to them for themselves or their cusamount of Treasury certificates of indebted- tomers up to amount for which each shall have ness, payable June 25, 1918, with interest qualified in excess of existing deposits when at the rate of 4 per cent per annum, from so notified by Federal Reserve Banks. November 30, 1917. Federal Reserve Banks During the four weeks between October 26 were instructed to receive subscriptions, and and November 23 discount- Condition of operations of the Federal Recertificates were issued in denominations of Federal Reserve T> i • •* • -j j. i $500, $1,000, $5,000, $10,000, and $100,000. Banks serve 13a-nks, meiiuy incidental The certificates have been sold, payment to the financing of the second to be made upon allotment, but not before Liberty Loan, continued on a large scale. November 30. Any Treasury certificates of Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

DECEMBER 1,1917. FEDERAL BESEBVE BULLETIN. 919 Following the payment of the 18 per cent [000 omitted.] installment (Nov. 15) temporary liquidation of discounted bills set in, especially at the New Federal 'Reserve Bank. Oct. 26. Nov. 23. inc N re e a t se. York bank, whose holdings of collateral notes Boston $34,919 S67,808 secured by Liberty bonds and certificates of New York 302,188 401,451 99,263 Philadelphia 23,599 48.518 24,919 indebtedness show a decline between Novem- Cleveland 27,699 61,231 33,532 Richmond 17,051 29,560 12,509 ber 9 and 16 of over 92 millions. Renewed Atlanta 14,301 17,380 3,079 Chicago.. 59,888 103,754 43,866 pressure was brought to bear on the Federal St. Louis 24,147 25,120 973 .Minneapolis 11,018 19,306 8,288 Reserve Banks during the following week, Kansas City 25,001 37,658 12,657 "Dallas 17,297 19,193 1,896 as the result, of the large Government opera- San Francisco 17,576 34,928 17,352 tions, mainly in New York City. Accordingly, Total bills. the New York Federal Reserve Banks holdings Total United States securities.. Total municipal warrants of collateral notes secured by war bonds and certificates show an increase for the week Total investments held ending November 23 from $151,531,000 to While the increase of operations has reduced $299,234,000, while the total holdings by all the reserve percentage from 71.7 to 64.7, it is the banks of this class of paper went up during interesting to note that the gold holdings of the week from $208,229,000 to $365,492,000. Federal Reserve Banks increased from $1,503,- Holdings of other classes of discounts show 436,000 to $1,604,704,000 during the same either much smaller increases, or else, as m period. the case of collateral notes secured by com- The subjoined table shows the manner in mercial paper, substantial decreases. . which the first installment of T> Acceptances on hand show an increase foi Payments on the period from $177,590,000 to $209,905,000-, second liberty the second Liberty Loan was all the banks, except those of New York (a *jOan« paid for at the several Federal part of whose holdings were purchased by liesorve Banks: other Federal Reserve Banks) and Chicago, Payments as of Nov. 15 on second Liberty Loan. showing larger holdings on November 23 than [000 omitted.] on the last Friday of October. Aggregate bill Federal Reserve Allot- Certifiholdings of ail the banks increased during the Bank. ment. Cash. Credit. cates. Total. four weeks from $271,712,000 to $449,474^000. Boston | 8408,000 $74,000 SI 79,000 ; $40,000 3293,000 Government financing accounts for most of the New York il, 151,000 118,000 701,000 ; 161,000 975,000 discounting done by the Federal Reserve Banks C Ph le i v la e d la e n lp d h ia j j 2 4 9 1 5 0 , , 0 0 0 0 0 0 10 5 8 7 ; . 0 0 0 0 0 0 i n i o 4 . , o o o o o o ;i 3 7 2 9 , . 0 0 0 0 0 0 2 3 0 0 3 8 , , 0 0 0 0 0 0 Richmond ! 183.000 54,000 SO'.OOO -: 11', 000 318,000 during November. Atlanta | 83; 000 21,000 42,000 i 3,000 06,000 Chicago | 520,000 167,000 Uii.000 • ()", 000 326.000 Investments of the Federal Reserve Banks St.Lrinis I 150,000 &), 000 6o,ooo: 23,000 122', 000 Minneapolis j 132,000 5-4.000 30', 000 84,000 in United States bonds show practically no K D a a n ll s a a s s . . C .. i . t * y j \ .1 7 3 4 6 , , 0 0 0 0 0 0 «s;ooo 2 2 0 < . 0 0 0 0 0 0 : 1 ( 0 ) , , 0 0 0 0 0 0 9 3 0 7 , , 0 0 0 0 0 0 change for the period, while the holdings of San Francisco i 261,000 9,000 22,000 ; 28.000 167,000 Si), 000 50,000 : United States short-term securities, composed Total. .!?», 809,000 841,000 1,477,000 ; 4<>9,000 2,787,000 of 1-year Treasury notes and certificates of indebtedness, increased from $55,876,000 toI It is interesting to note from the above 457,850,000. i statement the large extent to which the loan In the following table are shown the changes j was paid in full by subscribers, being 73 per cent between October 26 and November 23 in thei of the total accepted. It will further be noted totals of discounted and purchased bills held I that of this amount about 53 per cent was paid by each of the Federal Eeserve Banks, also I by credit. From this showing it is apparent changes in the aggregates of other classes ofI that a very large number of subscribing banks earning assets: I qualified as depositaries, and it is largely due Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

920 FEDERAL RESERVE BULLETIN. DECEMBER 1,1917. to the satisfactory arrangements made by the account of certificates of indebtedness and the Treasury with qualifying banks that a pay- 18 per cent installment of the second Liberty ment of almost $3,000,000,000 could be made Loan. The banks' increases in loans and inwithout creating any congestion or disturbance vestments include both direct investments in in the money market. During the month Government securities and amounts advanced certificates of indebtedness fell due and were to their customers in connection with subredeemed by Federal Reserve Banks to the scriptions to the second Liberty Loan. amount of $935,197,000. There remained to The reserve percentage for all clearing-house be paid on December 15 $1,385,296,000 of cerbanks, representing the ratio of net demand tificates maturing on that date, a small part of deposits to aggregate cash in vault plus amounts which, however, was received in payment on due from legal depositaries, including the Fed- Liberty Loan account. In order to avoid the eral Reserve Bank, shows accordingly a decline necessity of withdrawing so large an amount on from 19.1 per cent for the week ending October that date the Secretary of the Treasury has 20 to 18.1 for the week ending November 3. called the series of $300,000,000 Treasury cer- For the subsequent three weeks higher average tificates of indebtedness dated September 17, percentages obtain, viz, 18.7, 18.9, and 20.7 per 1917, and maturing December 15, 1917, for recent, indicating a lessening strain upon the demption on December 6, 1917, at par and liquid resources of the banks. accrued interest pursuant to the provision for such redemption contained in the certificates. A similar development is shown for those On December 6,1917, interest on all certificates banks which are members of the Federal of said series will cease to accrue. Reserve system, and whose reserve percentage The series of $400,000,000 Treasury certifi- was figured on the basis of balances due from cates of indebtedness dated September 26,1917, the Federal Reserve Bank only (i. e., excluding and maturing December 15,1917, has been called the amount of vault cash). From 16.1 per cent for redemption on December 11, 1917, at par for the week ending October 20 the ratio thus and accrued interest pursuant to the provision figured shows a decline to 15 per cent on Nofor such redemption contained in the certificates. vember 3 and an improvement to 16 per cent On December 11,1917, interest on all certificates for the week ending November 23. Average of said series will cease to accrue. excess reserves of all clearing-house banks de- The series of Treasury certificates of in- clined from $94,943,000 for the week ending debtedness dated October 24, 1917, and matur- October 20 to $62,405,000 for the week ending ing December 15, 1917, will not be redeemed November 3. For the following week the before maturity but will be paid on December average shows a gain of over 22 millions, while 15, 1917. average excess reserves for the week ending Between October 20 and November 23 the November 23 were in excess of 93 millions. 59 New York clearing-house For the trust companies in Greater New tlonofthl\anks. banks reported increases of York reserve percentages, as figured by the $620,164,000 in average weekly State Banking Department, show a somewhat loans and investments as against decreases of similar development, the average of 21 per cent $226,987,000 in average net demand deposits for the week ending October 20 declining to and $44,725,000 in average legal reserves. ! 20.1 per cent for the week ending November 3. Their average Government deposits show an % | An improvement to 21.2 per cent for the sucincrease of $679,113,000, from $191,989,000 to i ceeding week is shown, wiiich is followed, how- $871,102,000. These changes were caused \ ever, by a decline to 20.3 per cent for the week largely by the heavy demands on the New York ending November 17. For the week ending banks by both their local customers and out-of- ; November 23 this percentage is shown as 21.8, town bank correspondents in connection with j indicating a reserve position stronger than for Government financing, including payments on ! the initial week. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

DECEMBER 1, 1917. FEDERAL RESEEVE BULLETIN.. 921 Average excess reserves, including vault cash, tabulated they will reflect quite accurately the of the II clearing-house banks in Boston like- changing conditions in money and credit. wise indicate a successive decrease from The information given will thus be valuable $18,527,000 to $16,853,000 for the two weeks to the business community and to the banks. following October 20. For the subsequent It is intended that the figures be reported to the two weeks these averages rise, the average for Federal Reserve Banks at the close of business the week ending November 17, $20,318,000, on Friday of each week, beginning December 7. being $1,791,000 larger than for the initial and that a summary be made by each Federal week. Excess reserves for the week ending Reserve Bank and telegraphed to the Federal November 24 averaged $10,086,000, the lowest Reserve Board not later than the following level for the period under review. Thursday, for publication when the Board's For those Philadelphia clearing-house banks weekly statement is issued on Saturday. which are also members of the Federal Keserve As the leading State banks and trust comsystem excess reserves proper (i. e. disregard- panies are now members of the system, it will ? ing amounts of vault cash) show much smaller be possible for the first time regularly to publish changes, the amounts varying between statistics which will include figures from both $5,432,000 for the week ending October 20 and the national banks and State banking institu- $7,453,000 for the week ending November 10. tions. The necessary forms have been trans- For the latter and subsequent weeks the list mitted, and each of the Federal Reserve Banks of member banks includes the Girard Trust has been requested to instruct the member Co., with considerable average excess reserves. banks of those cities which are situated in its Excess reserves of these banks for the week district. Additional cities in each district will ending November 17 show a decline to be from time to time added upon request of the $6,534,000, followed by a considerable increase Federal Reserve Bank of each district. to $9,583,000 for the week ending November 24. In this connection it should be noted that During the past month the Board has desiga gratifying feature of the past month's operanated as reserve cities Buffalo, N. Y., Toledo, tions has been the continued movement of Ohio, Memphis, Tenn., Peoria, 111., Grand strong State institutions into the Federal Re- Rapids, Mich., and Oakland, Cal., thus making serve system. In all, 59 institutions were adbanks in those places subject to the reserve mitted during the month, their total capital and requirement of 10 per cent against demand surplus being $134,511,731, and their combined deposits and 3 per cent against time deposits. assets $1,190,986,947. State institutions in all In view of the extensive fiscal operations parts of the country are manifesting a patriotic Reports by mem- which will be undertaken by and public spirited disposition to cooperate in ber banks. the Government during the the strengthening of the banking resources of period of the war, it has been thought by the the Nation. Board desirable that those in charge of these At the request of the Federal Reserve Board, operations, the member banks themselves, and governors of Federal Reserve the public should be able to have a clear view at Meeting of Banks on November 8 met all times of the financial situation. To this end Governors. the Board has decided that the member banks with it in Washington and disin about 100 of the most important cities should cussed matters of general interest regarding be requested to transmit once a week to their the administration of the system. respective Federal Reserve Banks a condensed On November 19 the quarterly meeting of statement showing the principal items, such the Federal Advisory Council as deposits, loans, investments, cash, Govern- was held in Washington. The ment obligations owned, and loans on such meeting proved to be unusually securities. The preparation of these state- important on account of the significance of ments will involve but little labor and when the questions presented for consideration, 26416—17 2 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

922 FEDERAL RESERVE BULLETIN. DECEMBER 1.1917. prominent among which was that of rates of the country should in every possible way be of discount, and the question whether the brought into conformity with the requirements Federal Reserve system could with propriety of the Federal Reserve Act and of the regulabe employed in any way to relieve the neces- tions of the Board, and that there be at all sities of the industrial enterprises of the coun- times as large a proportion of banking distry. On both points the view of the Advisory counts and investments in the form of strictly Council was the same as that which has guided liquid paper eligible for presentation to Federal the Board, this view being that the system Reserve Banks as is possible. The campaign must use every effort to maintain its liquid of education which the American Trade character and that commercial paper regarded Acceptance Council is now carrying on is conas eligible for discount must be of a kind calcu- tributing strongly to this desired end. It is, lated to provide its own means of liquidation. however, undesirable that in this process of Admission of long-term obligations, or obliga- reshaping the commercial paper of the country tions short-term in form only, but requiring there should be developed any kind of paper continual renewal and incapable of settlement technically eligible for discount at Federal Rewithin a reasonable time by the use of funds serve Banks, but in fact not conforming to the growing out of« business transactions directly spirit and purpose of the Act and the regulafinanced by them, was regarded as unques- tions under it. During the past month the tionably opening an avenue of danger to the attention of the Board has been directed to a system, both because of the unliquid character plan for financing corporations for approxiof the paper, and because of the very large mately two years by means of a series of 90-day quantity of such paper almost inevitably to notes, issued under an agreement with the borbe expected for discount under present condi- rower providing for seven renewals. As statetions, should paper of this character be held ments have appeared in the press that notes of admissible for discount at Federal Reserve this kind are eligible for rediscount by Federal Banks. Reserve Banks, the Board thought it best to The attitude of the Council with respect to state definitely that renewal agreements of this rates of discount was distinctly that they could nature destroy the self-liquidating character of to advantage be increased, such advance being the notes and render them undesirable as investcalled for by the growing pressure upon bank ments for Federal Reserve Banks. This opinresources, and the necessity of discouraging ion is in harmony with the Board's ruling made unnecessary applications for discount. Dis- about a year ago in the case of certain acceptcussions during the sessions of the Council ance credits, in connection with which the covered other questions of general importance Board laid stress upon the point that the disaffecting the system which are now pending, count market, which is intended to deal with and resulted in recommendations to the Board short term and commercial borrowings, should which have been taken under advisement. not be made to exercise functions properly As the requirements of war financing absorb pertaining to the investment market. a larger share of the capital Changes in rates of discount at Federal Reavailable in the financial serve Banks have been under Rates of market, there is a disposition advisement by the banks and count. on the part of borrowers to put their paper into by the Federal Reserve Board a form available for discount at Federal Re- for some time past, and after careful consideraserve Banks in order that it may gain a wider tion on November 26 the Federal Reserve field of sale, and may be enabled to take ad- Board suggested to Federal Reserve Banks vantage of the lowest possible rate offered at that the time had come to increase their any time. It is highly desirable that the paper schedules in the near future, due consideration Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

DECEMBER 1,1917. FEDERAL RESERVE BULLETIN. 923 in fixing the proper moment being given to local preferential rate retained being in favor of conditions. This suggestion has been generally paper secured by Government obligations. adopted by the banks, the schedule of rates The former classification under which preferbeing approved by the Board on November ential rates upon acceptances and short term 28, and resulting in the establishment of the paper were established remains in effect. The following rates: slight advances in rates now introduced are likely to have their most important effect by Discount rales approved by the Federal Reserve Board. way of suggestion or caution to member banks which might otherwise apply too freely for Commercial paper maturing— discount during a period which should as far "Within 15 Agricul- as possible be devoted to timely reductions of Federal Reserve days, in- tural and Bank. cluding live-stock loans in harmony with the policy of accelerating member 16 to 60 61 to 90 paper over banks' col- days. 90 days. the absorption of Government obligations by lateral notes. restriction and savings. During the past month the organization, of Boston New York the proposed branches of re- C P l h e i v la el d a e n l d phia... ! serye b^nks at Pittsburgh, Cin- Richmond Atlanta. cinnati, and elsewhere has been Chicago St. Louis given detailed study," and it has been deter- Minneapolis Kansas City... mined to introduce, where conditions appear Dallas San Francisco.. to require such action, a new type of branch I organization. Elsewhere in this issue will Paper secured by U. S. be found a draft of branch by-laws as certi fi cates of indebtedness or Liberty Trade acceptances amended to meet the requirements of the new loan bonds, matur- maturing within— ing— plan. It will be noted that the principal dis- Federal Reserve tinction between this plan and the old branch Bank. Within 15 days, in- organization is found in the fact that under the m cl e u m di b n e g r 16 to 90 d I a t y o s 6 , 0 in- d 6 a 1 y t s o , i 9 n 0 - new plan no distinct area or territory is to be banks' col- clusive. clusive. assigned to a branch. Consequently no theolateral notes. retical capital will be assigned to the branch, nor will the member banks in any specific terri- Boston 4 4 New York 31 31 tory be required to deal with the branch. The Philadelphia... 4 4 Cleveland 4 4 branch will be established upon the theory Richmond 4 A Atlanta 4 4 that it is an office of the Federal Reserve Chicago 3* 4 St. Louis 4" 4 Bank of the district, opened for the conven- Minneapolis 4 4 Kansas City... 4 4 ience of such member banks as may desire Dallas 3i 4 San Francisco.. 4 4 to use it. The routine operations of the branch will be conducted by the manager NOTE 1.—Rate for acceptances purchased in open market 2\ to 4 per cent, except for San Francisco, whose rate ranges from 2\ to 4£ per cent. and the board of directors, subject to the NOTE 2.—Kates for commodity paper have been merged with those for commercial paper of corresponding maturities. supervision of the directors of the parent Fed- These advances in rates are in harmony with eral Reserve Bank and of the Federal Reserve the generally upward tendency of market rates Board. A collection zone will be allotted to of interest in the country at large, and are a each branch, and checks drawn upon banks recognition of the changed conditions of located in this zone may be sent to the branch demand for and supply of loan capital existing by any member bank in order to save time in throughout the country as a whole. It will be transit and to reduce float. The resulting noted that the so-called commodity rate has credit will be reported by the branch to the for the time being been eliminated, the only Federal Reserve Bank. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

924 FEDERAL BSSEEvE BULLETIN, D3CKHBEK. 1. 1917. The member banks will continue to send their $10,000,000 in any one month. This permisofferings for discount to the Federal Keserve sion has not been largely availed of, because Bank, except that any bank located in the col- the action taken of itself went far toward stabillection zone allotted to a branch and having izing exchange. Negotiations have been in signified its desire to deal with the branch may progress with various foreign countries lookhave the option of offering its paper for dis- ing to the establishment of a plan which would count to the branch. Paper which, in the result in the furnishing of exchange either opinion of the directors or the discount com- through deposits made with the Federal Remittee of the directors of the branch, is eligible, serve Bank in favor of such country, or through may be passed immediately to the credit of the some other means of relief. A notable example member bank on the books of the branch, sub- of the purpose of these negotiations is afforded ject to approval by the Federal Reserve Bank. by arrangements made by the Secretary of the Each member bank located in the collection Treasury to supply to the importers of the zone of a branch bank will be expected to advise United States rupee exchange for the purpose the FederalReserveBank as to whether it wishes of satisfying the legitimate trade requirements to treat the branch bank as its Federal Reserve of the country. The embargo on gold exports correspondent. If a bank so elects, it will has made it difficult for importers of the transact all its Federal Reserve business with United States to find remittances for their the branch, except that it may send checks purchases in India. The Secretary of the direct to the Federal Reserve Bank or to any Treasury has placed in the hands of the Federal other branch in its district for credit of its Reserve Board the administration and apporaccount with its own branch. In the matter tionment of these rupee drafts and the Board of exchange transfers, currency shipments and has taken the necessary steps so that merchants cash deposits and withdrawals, its dealings will requiring such remittances can make their apbe with its own branch and not with the Fed- plications through the Federal Reserve Bank eral Reserve Bank. of their district and receive allotments to cover Each Federal Reserve branch will forward to their requirements. The amount of rupees the Federal Reserve Bank of its district a daily now available is estimated as sufficient to cover transcript of all business transacted, showing immediate requirements of trade, and it is in detail credits given for loans, reserve credits hoped that further arrangements can be made given on account of collected items, and checks to take care of the future requirements as they paid for member banks. The Federal Reserve arise from time to time. The question of Bank will then make proper entries on its gold export control has been given a new asbooks in order to maintain a record of the re- pect by reason of the development of the larger serves of all member banks in its district. problem of control of foreign trade in gen- During the month of November the work of eral with a view to discouraging the importathe Board in connection with the control of the tion of unnecessary articles. Regulations recountry's gold supply, has con- lating to the licensing of foreign exchange ^jojementof tinued. Certain branches of transactions have also been worked out, and it foreign trade have found it is expected will be put into operation at an necessary to ask for the release of considerable early date. gold, and remedial action has accordingly been For the five weeks ending November 16 the taken, notably with respect to Mexico and Can- net outward movement of gold ada. A special conference with representatives totaled $4,101,000, compared of the Canadian bankers resulted in the Board's with $26,367,000 shown for the undertaking to release $25,000,000 of gold prior immediately preceding five-week period. Gold to July 1, 1918, in amounts not to exceed imports totaling $4,635,000 are credited largely Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

DECEMHEH 1,11)17. FEDERAL EESEEVE BULLETIN. 925 to Canada, Mexico, Colombia, and other Amer- \issue goes to press is that the campaign for the ican countries, while gold exports, totaling; sale of the certificates will begin on December 1 $8,736,000 were consigned chiefly to Mexico, |or shortly thereafter. Peru, and British India. Since January 1 of j The act of Congress of September 24, 1917, the present year the country's stock of gold "To authorize an additional issue of bonds to increased through net imports by $187,332,000, meet expenditures for the national security and while the gain since August 1, 1914, is defense,'7 etc., provided, among other things, $1,056,094,000, as may be seen from the for the issuance by the Secretary of the Treasfollowing exhibit: ury of two billions of war savings certificates. The act provided that these certificates were (ooo's omitted.) to be issued in small denominations and the Sec- Excess of retary of the Treasury was authorized to have imports over stamps printed to evidence payments therefor. exports. The object of Congress was twofold: First, to secure funds to meet the needs of the Govern- Ayg.ltoDec.31,1914 ! $23,253 $101,972 1 581,719 Jan. 1 to Dee. 31,1915 ; 451,955 31,426 420,529 ment; and, second, to make it possible for every Jan. 2 to Dec. 31,1916 | 685,745 155,793 529,952 Jan. 1 to Nov. 16,1917 : 549,715 362,383 187,332 man, woman, and child in the country to lend Total | 1,710,668 654,574 1,056,094 money to the Government at rates of interest equal to those carried by Government bonds, 1 Excess of exports over imports. yet in such a way as to meet public con- Erratum. venience. On pages 844-845 of the October Bulletin A committee, appointed by the Secretary of two diagrams appear which show the move- the Treasury, has been working out the details ment of the price of silver for the period 1882 and the machinery necessary to put this law to September, 1917. The upper curve in either into effect, and the general plan is as follows: diagram is intended to illustrate changes in the Provision is made for the issuance of the price of an ounce of silver, and the lower curve "war savings certificates.'7 The certificate changes in the price of 371J grains of silver, takes the form of an engraved sheet bearing the pure silver contents of an American dollar. upon its face the name and address of the In the diagram the upper curve was erroneously investor or owner. It is given, without cost, marked "(1)" instead of "(2)," while the to anyone who is ready to make the first inlower curve was marked '' (2)" instead of '' (1)." vestment for a large '''war savings certificate Attention is called to this error, so proper cor- '. stamp," which sells during this December and rections may be made in the reader's cop}7. ; January at $4.12, and thereafter through the I months of 1918 at I cent more each month. : Each certificate is designed to carry 20 of these War Savings Certificates. I large stamps, and since the value of each stamp On page 730 of the October Bulletin refer-: increases with each successive month, the cerence was made to the committee on war savings ! tificate, which represents the combined value certificates, of which Mr. Frank A. Vanderlip,i of the certificate stamps affixed to it, increases president of the National City Bank of Newi in value each month in equal proportion. In York, is chairman, appointed by the Secretary • other words, at the end of five years from the of the Treasury under provisions of the act of; date of issue, to wit, January 1, 1923, the Gov- September 24, 1917. ; eminent will redeem and pay for each stamp An enormous amount of detail work has been i on the certificate $5, and will redeem and pay required and an immense amount of printing; for a filled certificate containing 20 stamps and engraving done;1 but the expectation as this : $100. This payment by the Government rep- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

926 FEDERAL BESEBVE BULLETIN DECEMBER 1,1917. resents the original cost of the stamps, together years. Thus|eacM$4.12 paid in grows in value with interest at the rate of 4 per cent each year, from dayftofdayjuntii it [becomes worth $5 at compounded quarterly. the end of five years. It is expected to make arrangements with j To facilitate the accumulation by those of banks to act as custodians of certificates for small means of the price of the certificate stamp investors; and as a further protection any in- sold at $4.12 to $4.23, provision is made for the vestor may, if he chooses, register his certifi- sale of 25-cent stamps which may be accumucates with the stamps thereto affixed, at any j lated upon a card and turned in as payment for money-order post office. !certificate stamps. This should appeal espe- To take care of the case of the investor who, ,cially to school children; hence the committee for any reason or at any time, must ask for the Ihas prepared an attractive card, known as a refund of his money from the Government, j"thrift card," upon which the 25-cent thrift provision is made so that on suitable notice he stamps will be affixed. Sixteen of these will receive what he paid plus 1 cent per month thrift stamps, with the necessary small change thereafter for each stamp on the certificate. to bring the total up to the price of the This is slightly less than the rate of increment certificate stamp, can be turned in to pay for he would receive if the stamps were held for such stamps. their full term. This provision for redemp- Although the first issue of certificates and tion is made necessary by the fact that cerstamps are all to be printed as of the series of tificates can not be sold and are not trans- 1918, provision has been made for anticipating ferable nor payable to bearer. At the same their sale so as to enable holiday makers and time this privilege is not given in order to en- Christmas givers to avail themselves of the courage redemption, for the whole purpose of privilege of helping the Government in its need the Government in borrowing these funds is and at the same time make worthy gifts to to make a five-year loan, which purpose is their friends and little ones. With this object nullified if the return of the money is demanded in view, it is intended to arrange for the issuby the investor. ance and sale of the 1918 certificates and stamps As all thoughtful people must appreciate, the early in the month of December. Government is appealing to all its people for Every post office in the land will have them aid of one kind or another. From those who on sale; all banks and many stores and other can fight it asks for military service; from those reputable agencies will also be prepared to who can spare from their cash means (i. e., sell them. Many employers of labor will offer earnings or savings, or both) it demands finantheir employees facilities for purchasing these cial assistance, and this it takes partly in the war-savings certificates. form of taxes and partly in the form of borrow- Finally, the object of the loan in this form ing. The difference between this method of is to give every man, woman, and child in Government borrowing and that provided for the United States the opportunity of doing his in the sale of Liberty Loan bonds lies in the or her bit to help win the war and aid in the fact that in the latter case larger units are great task of bearing the torch of liberty to dealt with and the interest is paid back to the every land and every home. It is believed lender every six months, while in the case of the that the campaign of education about to be war savings certificates, which bear the same launched will serve the country in a permarate of interest as the last Liberty Loan bonds, nent and lasting way in developing habits of a much larger number of units are dealt with thrift in all our people. and the interest, because it is necessarily small, The Treasury circular relating to waris added to the principal and the accumulated savings certificates is as follows: sum paid at maturity, or at the end of five Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

DECEMBER 1,1917. FEDERAL RESERVE BULLETIN. [1917. Department Circular No. 94. (War-Savings Circular owner of each war-savings certificate must be No, I.) Loans and Currency.] written upon such, certificate at the time of TSEASUIIY DEPARTMENT, the issue thereof. OFFICE OF THE SECRETARY, War-savings certificate stamps, series of Washington, November, 15,1917. 1918, will be issued in 1918 at the following The Secretary of the Treasury offers for prices: sale to the people of the United States an issue January $4.12 ; July $4.18 of United" States war-savings certificates, February 4.13 ! August 4.19 series of 1918, authorized by act of Congress, March 4.14 ' S~ ept'e mmber 4.20 approved September 24, 1917. Payments for April 4.15 October 4.21 or on account of such war-savings certificates Mayy 4.16 November 4.22 JJune 4,17 December 4. 23 must be evidenced by United States warsavings certificate stamps, series of 1918, The average issue price above fixed for the which are to be affixed thereto. The sum of year 1918 with interest at 4 per cent per annum such war-savings certificates outstanding shall compounded quarterly for the average period not at any one time exceed in the aggregate to maturity will amount to $5 on Januarv $2,000,000,000 (maturity value). The amount 1. 1923. of war-savings certificates sold to any one person at any one time shall not exceed PAYMENT AT MATURITY. $100 (maturity value), and it shall not be Owners of war-savings certificates will be lawful for any one person at any one time to entitled to receive, on January 1, 1923, at the hold war-savings certificates to an aggregate Treasury Department in Washington, or at a amount exceeding $1,000 (maturity value). money-order post office, upon surrender of such War-savings certificates, war-savings certifi- certificates and upon compliance with all other cate stamps, and United States thrift stamps provisions thereof, $5 in respect of each war- (described below) may be purchased, at the savings certificate stamp, series of 1918, then prices hereinafter mentioned, at post offices, affixed thereto; but no post office shall be reand at numerous banks and other agencies quired to make any such payment until 10 days to be appointed by the Secretary of the Treas- after receiving written demand therefor. ury. Advance sales will begin December 3, 1917. All sales of war-savings certificates PAYMENT PRIOR TO MATURITY. and war-savings certificate stamps made in Any owner of a war-savings certificate, at his December. 1917, will be at the January, option, will be entitled to receive at any time 1913, price, and the date of issue of all certifiafter January 2, 1918, and prior to January 1, cates so sold will be deemed January 2, 1918. 1923, at a money-order post office, upon surrender of his certificate and upon compliance DESCRIPTION OF WAR-SAVINGS CERTIFICATES. with all other provisions thereof, in respect of each war-savings certificate stamp, series of A United States war-savings certificate, 1918, then affixed to such certificate, the series of 1918, will be an obligation of the amount indicated in the following table; but United States when, and only when, one or no post office shall make any such payment more United States war-savings certificate until 10 days after receiving written demand stamps, series of 1918, shall be affixed thereto. therefor: Each of such war-savings certificates will have spaces for 20 war-savings certificate stamps, series of 1918, and each of such stamps thereto Month. 1918 1919 1920 1921 1922 affixed will have a maturity value of $5 on January 1, 1923, which will accordingly give $4.12 84.24 34.36 U. 48 U. 60 each such certificate, when bearing its full M Fe a b r r c u h a - ry. - 4 4. . 1 1 4 3 4 4. . 2 2 6 5 4 4 . . 3 3 7 8 4 4 . . 4 5 9 0 4 4 . . 6 6 2 1 complement of such stamps, a maturity value 4.15 4.27 4.39 4.51 4.63 May 4.16 4.28 4.40 4.52 4.64 of $100 on said date. No war-savings certi- 4.17 4.29 4.41 4.53 4.65 ficate will be issued unless at the same time July 4.18 4.30 4.42 4.54 4.66 August 4.19 4.31 4.43 4.55 4.67 one or more war-savings certificate stamps September 4.20 4.32 4.44 4.56 4.68 October 4.21 4.33 4.45 4.57 4.69 shall be purchased and affixed thereto, but no November. 4.22 4.34 4.46 4.58 4.70 additional charge will be made for the war- December 4.23 4.35 -1.47 4.59 4.71 savings certificate itself. The name of the Jan. 1,1923, 85. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

928 FEDERAL RESERVE BULLETIN. DECEMBER 1,1917. series of 1918, and upon such exchange the REGISTRATION. owner of such thrift card must pay the differ- War-savings certificates may be registered ence between $4 and the current issue price of without cost to the owners at any post office war-savings certificate stamps during the of the first, second, or third class, subject to month in which such exchange is made, as such regulations as the Postmaster General may shown by the following table: from time to time prescribe, and payment in respect of an}" certificate so registered will be January $4.12 ! July $4.18 made only at the post office where registered. February 4.13 \ August 4.19 Unless registered, the United States will not be March 4.14 j September 4. 20 April 4.15 | October 4.21 liable if payment in respect of any certificate May 4.16 ! November 4. 22 or certificates be made to a person not the June 4.17 | December 4. 23 rightful owner thereof. METHOD OF DISTRIBUTION AND SAL.;. WAR-SAVINGS CERTIFICATES NOT TRANSFERABLE. War-savings certificates are not transferable POST OFFICES AND FEDERAL RESERVE BANKS. and will be payable only to the respective On or about December 3, 1917, war-savings owners named thereon, except in the case of certificate stamps and United States thrift the death or disability of any such owner. stamps (together with thrift cards and warsavings certificates, with suitable pocket en- TAX EXEMPTION. velopes for such certificates) will be furnished War-savings certificates shall be exempt, (1) to post offices for sale to the public and both as to principal and interest, from all taxa- to agents of the first class and (2) "to Federal tion now or hereafter imposed by the United Reserve Banks, as fiscal agents of the United States, any State, or any of the possessions of States, for distribution to agents of the second the United States, or by any local taxing au- class and also for sale to banks which are thority, except (a) estate or inheritance taxes, agents of the first class; the classification of and (6) graduated additional income taxes, such agents being hereinafter provided for. commonly known as surtaxes, and excess prof- Post offices and Federal Reserve Banks will its and war-profits taxes, now or hereafter maintain available supplies of stamps, certifiimposed by the United States, upon the income cates, and cards in amounts sufficient to meet or profits of individuals, partnerships, associa- the requirements for such distribution and sales. tions, or corporations. The interest on an amount of bonds and certificates authorized OTHER AGENCIES. by said act of September 24, 1917, the principal oi which does not exceed in the aggregate Banks, bankers, and trust companies; rail- $5,000, owned by any individual, partnership, road and express companies; department and association, or corporation, shall be exempt other retail stores; the duly authorized reprefrom the taxes provided for in clause (b) above. sentatives of labor, fraternal, and other associations; and other corporations, partnerships, and individuals; who patriotically offer their THRIFT CARDS AND THRIFT STAMPS. services without expense, either to the United Payments on account of war-savings certifi- States or to purchasers, will be among those cates may also be evidenced by United States whom the Secretary of the Treasury will in his thrift stamps, having a face value of 25 cents discretion appoint as agents to sell war-savings each but bearing no interest. United States certificate stamps and the United States thrift thrift stamps, however, must not be affixed to stamps and to issue war-savings certificates war-savings certificates, but only to thrift and thrift cards. cards, which may be obtained without cost. Blank forms of application for appointment Thrift stamps as such are not directly redeema- as agent, with necessary information as to ble in cash, but each thrift card will have execution and filing, may be obtained from any spaces for 16 such thrift stamps, and a thrift money-order post office, from agent banks, card, when bearing its full complement of such or from State or local representatives of the stamps, may be exchanged at a post office or National War-Savings Committee. Appointother authorized agency, on or before December ments will be made only under authorization 31, 1918, for a war-savings certificate stamp, of the Secretary of the Treasury. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

DECEMBER 1,1917. FEDERAL BESEBVE BULLETIN. 929 No agent shall sell any United States thrift OTHER DETAILS. stamp at any price other than 25 cents for each stamp, nor any war-savings certificate War-savings certificates will not be receivstamp at any price other than the current issue able as security for deposits of public money price of such stamp during the month in which and will not bear the circulation privilege. sold, as hereinabove specified. The Secretary of the Treasury reserves the right at any time to revoke any or all ap- CLASSIFICATION OY AGENTS. pointments of agents, to withdraw war-savings certificates, war-savings certificate stamps, Two classes of agents will be appointed: I or United States thrift stamps from sale, to First, agents of the first class, who may neither ; refuse to issue or to permit to be issued any obtain nor hold at any one time in excess of | war-savings certificates or thrift cards, and $1,000 of war-savings certificate stamps (mato refuse to sell or to permit to be sold any turity value); second, agents of the second war-savings certificates or war-savings certificlass, who may obtain at any time or times in cate stamps or United States thrift stamps to excess of $1,000 of such stamps (maturity any person, firm, corporation, or association. value) for sale to the public. The right is also reserved to make from time to time any supplemental or amendatory regu- AGENTS OF THE FIRST CLASS. lations which shall not modify or impair the Agents of the first class may obtain, for sale terms and conditions of war-savings certifito the public, from post offices, agent banks, cates issued or to be issued in pursuance of or other authorized agents, war-savings certi- said act of September 24, 1917. ficate stamps in any amount desired, not, how- Further details may be announced by the ever, in excess of $1,000 (maturity value), Secretary of the Treasury from time to time, together with an adequate supply of warinformation as to which will be promptly fursavings certificates, upon payment for such nished to postmasters at money-order post stamps at the current issue price thereof during offices and to other agents. the month in which such stamps are thus obtained. Similarly, agents of the first class may obtain, for sale to the public, United States thrift stamps, together with an adequate Indorsement by Directors. supply of thrift cards, in any amount desired upon payment for such stamp3 at 25 cents In a circular letter, dated July 24, it was sugeach. gested by the Board that in compliance with AGENTS OP THE SECOND CLASS. section 22 a resolution of tho board of directors Agents of the second class will be required to of a member bank might be adopted, substandeposit with the Secretary of the Ireasury, tially as follows: or with such agencies as he may designate, United States bonds of any Liberty Loan, or Resolved, That the president, cashier, or assistant cashier of this bank be, and he is hereby, authorized to discount United States certificates of indebtedness, the notes, drafts, or bills of exchange for , a director of aggregate par value of which shall be at least this bank, on the same terms and conditions as other notes, equal to the aggregate amount of war-savings drafts, bills of exchange, or other evidences of debt are discounted for customers of the bank: Provided, The aggrecertificate stamps, at the issue price thereof gate amount of such notes, drafts, and bills of exchange disduring December, 1918, as specified above, counted for such director and remaining unpaid shall at plus the aggregate face value ox United States no time exceed the sum of $ : Provided further, That thrift stamps obtained by such agents, re- in any case in which any note, draft, or bill of exchange is discounted under authority of this resolution a report shall spectively. A further Treasury Department be made thereof at the next subsequent meeting of the circular will shortly be issued specifying the executive and discount committee of the board and such terms and conditions for the deposit of such report shall show the aggregate amount of liabilities of securities, or of such other securities, the such director to this bank. deposit of which may be permitted by such In order to remove any doubt as to whether circular under the conditions to be therein such a resolution would cover notes discounted specified, and covering other matters of detail by a third party bearing the indorsement of particularly concerning such agents of the second class. directors or attorneys, it is suggested that wher- 26416—17 3 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

930 FEDERAL RESERVE BULLETIN. DECEMBER 1,1917. ever this is necessary the foregoing resolution savings certificates authorized by the act of be modified to read as follows: September 24, 1917, are entitled to exemption from all income and war excess profits taxes Resolved, That the president, cashier, or assistant cashier upon the interest received on a principal of thi3 bank be, and he is hereby, authorized to discount amount not to exceed $5,000 face value of such notes, drafts, bills of exchange, or other evidences of debt executed or indorsed by , a director, or , the obligations. If, for example, the holder owns attorney, of this bank on the same terms and conditions as $5,000 Treasury certificates of indebtedness, other notes, drafts, bills of exchange, or other evidences of $7,000 4 per cent Liberty bonds, and $2,000 debt are discounted: Provided, The aggregate amount of war savings certificates, he will be entitled to such notes, drafts, and bills of exchange discounted for such director or attorney and remaining unpaid shall at exemption from graduated additional income no time exceed the sum of S : Provided further, That taxes and war excess profits taxes upon only in any case in which any note, draft, or bill of exchange is the interest received upon $5,000 of the aforediscounted under authority of this resolution a report shall said obligations. It is immaterial whether the be made thereof at the next subsequent meeting of the 4 per cent Liberty bonds were issued to the executive and discount committee of the board and such report shall show the aggregate amount of liabilities of liolder in exchange for Liberty bonds of the such director to this bank. first series or Treasury certificates of indebtedness, or whether issued upon a new subscription. The exemption is upon the income from $5,000 face value of the obligations issued by Income from Liberty Bonds Exempt from Tax* authority of the aforesaid act of September 24, 1917. The income from not to exceed $5,000 face value of Liberty bonds, Treasury certificates of indebtedness, and war savings certificates •Standardizing Commercial Paper. authorized by the act of October 3, 1917, is Progress in standardizing commercial paper exempt from all income and war excess profits is shown by the following, which was sent out taxes. The following was sent out from the by the clearing-house banks of Portland, Oreg.: office of Commissioner of Internal Kevenue, Treasury Department, under date of Novem- To our customers: ber 8: On November 14, 1917, the following resolution was passed unanimously by the Port- To collectors of internal revenue: land clearing-house banks: Attention is called to section 7 of the act of "Resolved, That on and after December 1, Congress approved September 24, 1917, pro- 1917, the banks of the Portland Clearing House viding for the issue of 4 per cent Liberty will accept commercial paper only when it is bonds, Treasury certificates of indebtedness, drawn with a fixed maturity date and for a and war savings certificates, which reads as period of six months or less.77 follows: Referring to the above resolution, kindly note that on and after December 1 next the That none of the bonds authorized by section one, nor of undersigned will not accept notes drawn "On the certificates authorized by section five, or by section six, of this act, shall bear the circulation privilege. All such demand/' but will require all obligations to be bonds and certificates shall be exempt, both as to principal drawn with a fixed date of maturity not exceedand interest, from all taxation now or hereafter imposed by ing six months. the United States, any State, or any of the possessions of the United States, or by any local taxing authority, except Canadian Bank of Commerce, First (a) estate or inheritance taxes, and (b) graduated addi- National Bank, Ladd & Tilton Bank, tional income taxes, commonly known as surtaxes, and Bank of California, Natl. Assn, excess profits'and war-profits taxes, now or hereafter im- United States National Bank, Hiberposed by the United States, upon the income or profits of j nia Savings Bank. Northwestern Naindividuals, partnerships, associations, or corporations. The interest on an amount of such bonds and certificates tional Bank. the principal of which does not exceed in the aggregate $5,000, owned by any individual, partnership, association or corporation, shall be exempt from thetax^s provided for in subdivision (b) of this section. Use of Coin-Counting Machines. You are hereby informed that holders Following is a circular letter issued on No- (whether individuals, partnerships, associations or corporations) of Liberty bonds, vember 21 by the Federal Reserve Bank of Treasury certificates of indebtedness, and war Philadelphia: Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

DECEMBER 1,1917. FEDERAL KESEKVE BULLETIN". 931 To the hanking institution addressed: | telegraph, and express service when such For your information your attention is again charges fall directly upon the Federal Reserve directed to a letter on the use of coin-counting Bank. machines, issued by the Federal Keserve Board some time ago, but which is especially Protection of Bank Depositors. appropriate at this time, reading as follows: "The use of gold coin in machines for count- The Secretary of the Treasury on November ing money has proved that there is quite a 16 issued a statement as follows: serious abrasion of the coin. This draws at- "Among the many absurd and vicious tention to the fact that in our country, as well rumors which are being put into circulation as in Europe, the use of gold coin as currency these days, probably through pro-German in the hands of the people is disappearing. influences, is one that the Government proposes The public does not want to carry gold coin, to confiscate the money on deposit in the banks. and its use leads to rapid abrasion and consequent loss of value. In the United States it The absurdity of the statement is obvious on may be truly said that as a practical matter its face, but I have received letters from, coined gold is only used as security behind several parts of the country which indicate gold certificates, or for foreign exchange pur- that this rumor is being circulated for an evil poses, where nothing else can be used in ad- purpose. Of course, these minors are wholly justing international balances. without foundation. In fact, the Government has no power to confiscate the money of "The manufacturers of coin-counting madepositors in banks." chines will undoubtedly make a strenuous protest against the enforcement of any order forbidding or discouraging the use of their machines for counting gold coin, but when the •'•; Christmas Gifts. ' • matter is explained to them they ought to see The following circular letter, issued by a large the importance of protecting the country's national bank in New York on November 16 to gold supply and discouraging the wasteful use of gold for pay rolls, especially when it is re- its customers, affords a statement of the policy membered that the recipient of gold coin would that is being pursued by many institutions-re1in most cases much prefer paper money. Of garding the use of gold as holiday gifts. .' course, it is unnecessary to say that coincounting machines are very valuable in count- To our customers and friends: ing silver money, and their use in this way is The use of gold coins W holiday presents*, in no way objected to, silver coinage being during the war period, is b.eing discouraged by accepted by tale and not by weight. the Government—not for the purpose of abol- "It is suggested that the banks of your dis- ishing a time-honored'"custom, but, to put .it trict bo invited to point out to corporations or plainly, to conserve its supply of gold ana thus firms of their district using these coin-counting kelp win the war. - . ' machines that they should forego the slight That ti hearty : and willing ' response from advantage or greater convenience derived from everyone will be forthcoming goes without the use of gold in making up their pay rolls saying. ' in view of the loss such use causes to the coun- It occurs to us that -excellent substitutes cai. try by the abrasion involved and by the keep- be found, through the use of Liberty bonds, ing in circulation of gold, which, if held by the war-savings certificates, :and United State's Federal Reserve Banks, would add to" the thrift cards. These should not only prove to greater credit power of the country." be acceptable presents, but their use would encourage the further development of thrift—to the importance of which the people of this country are slowly awakening. '' Easy _ to Exemption From Certain Taxes, come, easy to go/' as the sayingis, can be safely applied to money presents. Why not intro- The Commissioner of Internal Revenue has duce the investment feature into your Christwritten the Federal Reserve Board that, in his mas gifts? You will serve three purposes: opinion, Federal Reserve Banks are not sub- The spirit of the holiday time will be gratis ject to the tax upon charges for telephone, fied. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

932 FEDERAL RESERVE BULLETIN. DBCBMBBR l, 1917. The necessity for saving and for thrift will bo of the war, and of their determined support of emphasized. the Government in all measures required for Your country will be backed in its fight forits vigorous prosecution. right. "In conformity with the original announce- We will gladly furnish full details regarding ment, I shall accept 50 per cent of the over- Liberty bonds, war-saving certificates, or subscription, making the total issue of the United States thrift cards, and are in position second Liberty Loan $3,808,766,150. Allotto supply them at face value. No charge for ments will be made as follows: our services. Your cooperation in this will be direct support to a noble cause. Subscriptions. Amount. Allotment. Amount. Up to and including $2,488,469,350 100 t>er cent $2,488,469,350 Success of the Second Liberty Loan. 550,000. Over £50,000 up to 359,865,900 90 per cent, but 323,879,600 and including not less than The Secretary of the Treasury, on Novem- $100,000. $50,000 bonds. Over 8100,000 up to 242,220,800 75 per cent, but 181,665,800 ber 8, issued the following statement: and including not less than $200,000. $90,000 bonds. Over $200,000 up to 756,586,700 60 per cent, but 455,690,300 "On October 1, 1917, in Treasury Depart- and including not less than ment Circular No. 90, the following announce- 51,000,000. $150,000 bonds. Over $1,000,000 up to 470,425,600 50 per cent, but 235,582,300 ment was made: 'The Secretary of tne Treasury and including not lcs^ than $8,000,000. $600,000 bonds. invites subscriptions, at par and accrued inter- Over $8,000,000 up to 249,963,950 41.20 per cent, but 103,071,200 est, from the people of the United States, and including not less than $30,000,000. $4,000,000 bonds. for $3,000,000,000 of United States of America $50,000,000 50,000,000 40.8152 per cent.. 20,407,600 10-25 year 4 per cent convertible gold bonds, Total 4,617,532,300 Total 3,808,766,150 of an issue authorized by aci^ of Congress approved September 24, 1917; the right being The subscriptions by Federal Reserve disreserved to allot additional bonds up to onehalf the amount of any oversubscription/ tricts are as follows: "I congratulate the American people upon the phenomenal success of the second Liberty Total sub- Over- Loan. The final returns just received from the scriptions Quota. subscripreceived. tion. 12 Federal reserve banks show that the total subscriptions were $4,617,532,300—an over- Per cent. subscription of $1,617,532,300, or approxi- Boston $476,950,050 $300,000,000 59 New York 1,550,453,450 900,000,000 72 mately 54 per cent of the amount offered. Philadelphia.. 380,350,250 250,000,000 52 This is a more gratifying result even than was C R l i e c v h e m la o n n d d 4 2 8 0 6 1 , , 1 2 0 1 6 2 , , 8 5 0 0 0 0 3 1 0 2 0 0 , , 0 0 0 0 0 0 , , 0 0 0 0 0 0 6 6 2 3 the first Liberty Loan, when $2,000,000,000 Atlanta 90,695,750 80,000,000 13 Chicago 585,853,350 420,000,000 39 of bonds were offered and a subscription of St. Louis 184,280,750 120,000,000 54 more than $3,000,000,000 was received. K M a i n n s n a e s a p C o i l t i y s . . . . . . 1 1 4 5 0 0 , , 9 1 3 2 2 5 , , 6 7 5 5 0 0 1 1 0 2 5 0 , , 0 0 0 0 0 0 , , 0 0 0 0 0 0 3 2 4 5 "These financial operations, greater in mag- Dallas 77,899,850 75,000,000 San Francisco. 292,671,150 210,000,000 nitude than ever attempted by any other Government in the world, were not too great for Total. 4,617,532,300 3,000,000,000 54 the American people. They not only absorbed readily the full amount of the first and second "It is to the credit of the country that every Liberty Loans, but in each instance over- Federal Reserve district exceeded its quota of subscribed the loan by more than 50 per cent. the $3,000,000,000 of bonds offered. The "It is an immensety gratifying fact that the American people may well felicitate themsecond Liberty Loan was subscribed for by selves upon this extraordinarily satisfactory approximately 9,400,000 men and women of result. the country. In this number, it is estimated "It may be asked why I do not accept the that 9,306,000, or 99 per cent, subscribed in full amount of the subscription. The answer amounts ranging from $50 to $50,000, theis simple: The Government must never alter aggregate of such subscriptions being $2,488,- the basis upon which it offers an issue of bonds 469,350. The fact that such a vast number after subscriptions are closed. Having ansubscribed for bonds is significant of the wide- nounced that only one-half of the oversubspread interest of the people in the purposes scription would be accepted, the Government Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

DECEMBER 1.1917. FEDERAL BESERVE BULLETIN. 933 must, of course, faithfully observe that basis. uary, 1918, I desire to correct this impression. Whenever loans are offered to the public, the In view of the large over-subscription of the banks and the public adjust themselves both second Liberty Loan, I am glad to be able to consciously and unconsciously to the basis of | state that this will not be necessary.'5 the offering, and it would be extremely unwise to alter that basis after the subscriptions have been received. State Banks and Trust Companies Admitted. "The success of the second Liberty Loan, like that of the first, is a distinct triumph for The following list shows the State banks and the people of the United States. It not only demonstrates their ability, patriotism, and trust companies which have been admitted resources, but augurs the certain success of to membership in the Federal Reserve system any future loans that may be offered by the during the month of November: Government. "This great loan would have been impossible without the loyal support and cooperation of Capital. Surplus. Total the people of the country, but even that support could not have been secured except for the Brooklyn Trust Co., Brooklyn, indefatigable, unselfish, and earnest work of N. Y. .;.... SI, 500,000 82,808,481 $40,270,029 hundreds of thousands of splendid men and St. Clair County Ravings Bank, 100,000 50,000 1,319,436 women throughout the United States who Port Huron, Mich 50,000 10,000 478,360 Citizens Bank, Clinton, Wis 50,000 110,000 threw themselves into the task without reser- Minors Deposit Bank, Lykcns, Pa| 679,897 vation. I wish to thank all these splendid Cit B iz u e ff n a s l o, C o N m . m Y ercial' Trust Co.. '. 1,250,000 1,250,000 18,196,063 volunteers and patriots, and I particularly Citizens Trust A Sayings Bank, 700,000 150,000 Columbus, Ohio , 5,271,822 wish to thank tne bankers of America, the Savari?iah I'iank & Trust Co., 630,000 570,000 Liberty Loan organizations which were formed M S an a u v f a a n c n tu a r h e , r s G a Trvut Co.. Brook- 1,000,000 300,000 S, 415,862 in every State, city, town, and community in lyn, N. V '. I 15,031,812 The "Baltimore Trust: Co., Balti- I 1,000,000 2,000,000 the United States, the women of America who more, M"d i 15,990,745 made a distinctive fight for the Libert}" Loan Citizens Savings &• Trust Co., i,000,000 4,000,000 |74,532,631 Cleveland, Oilio 2,050,000 4,500.000 i82,094,144 through their own organizations throughout Manhattan Co.. New York-. N. Y. i the country, the Boy Scouts and Girl Scouts, Fi N de . l Y it ' y . Trust Co., New York, 1 1 , , 0 0 0 0 0 0 , , 0 0 0 0 0 0 I j 1 1 , , 0 0 0 0 0 0 , , 0 0 0 0 0 0 2 1 9 3 , , 4 9 4 6 3 5 , ,1 3 4 0 0 1 the newspapers and periodicals which gave, as Peoples Trust Co., Brooklyn, N-.Y.i W. R. Grace & Co/s Hank, Now i 500,000 i 500,000 6,675,523 in the first Liberty Loan, the most effective, York, N.Y ". i 25,000 | 750 194,868 Paoii State Hank, Paoli, Ind i unselfish and generous support through their Farmers Banking Co., Prairie ! 30,000 i t 6,000 339,528 columns and otherwise, the press associations, Dopot. Ohio • Wayne Co. <£- Home Savings BanVv 3,000,000 3,000,000 !oH, 68 [,743 the business houses, the various patriotic or- Detroi t. Mich ....'! ganizations, cooperative and fraternal societies Baltimore Commercial Bank. ; 500,000 100,000 I 2, 668,945 Baltimore, Af d and other organizations throughout the length Industrial Trust Co.. Providence. : 3,000,000 4,000,000 I 71,783,303 R.I and breadth of the land which so generously Firs? Trust <fe Savings Bank. 500,000 500,000 !84,207,394 and earnestly gave their services to the great Chicago. HI '. .'. United Stales Bank of Chicago, I 200,000 30,000 869,220 cause. Thanks are due also to those employers Chicago, III i 500,000 100,000 2,668,743 Austin State Bank, Chicago, 111.. who, in such large numbers, gave the fullest Union Trust Co. of New York, 3,000,000 4,500,000 87,0-13,831 opportunity to their employees to subscribe to New York, N. Y United States Mortgage & Trust 2,000,000 4,000,000 93,377,698 the loan upon terms commensurate with their Co., Now York, N. Y 50,000 100,000 ' 497,661 Marion Central Bank, Marion, Ala ability to make the required payments. Columbia Trust Co., New York. ! 5,000,000 5,000,000 124,186,774 i' I should like to make special mention of the N.Y i ! Hillsboro Bank & Savings Co., 50,000 ! 551,959 soldiers and sailors of America who came for- ITillsboro, Ohio 12,000 | Scandinavian Trust Co., New 1,000,000 11,359,362 ward with subscriptions amounting to more York, N. Y 1.500,000 | per capita than those received from the civil The Citizens Commercial & Sav- 150,000 : 3,438,805 ings Bank, Flint, Mich 175,000 I population. These gallent men are not only B. Dansard & Son's State Bank 100,000 : 1,627,265 giving their services and their lives to their La M pe o e n r r oe S , a M vi i n c g h s Bunk, Lapcer, 50,000 : 20,000 545,282 country, but are lending their money as well Mich .' 10,000 Farmers State Bank, Spring Val- 25,000 ; 149,092 to strengthen the Government in this great ley, Minn. 5,000 wa " r I fo u r n A de m rs e t r a ic n a d ' s t h ri a g t h a ts n a im nd p r w es o s r i l o d n d p e r m ev o a c i r l a s c i y n . U O K n h a s i s i i o l o p l n o a B n r , H a S n O a t k a n h i t k n i e o , g B Ja a & c n k k T s , o r u C n s , h t i M c C a i g o c o h ., , M 11 a 1 s . - .. 4 1 5 0 5 0 0 0 0 , , , 0 0 0 0 0 0 0 0 0 s . : 3 1 8 0 0 7 0 0 . , , 5 0 0 0 0 0 0 0 0 6 4 1 , , , 4 3 3 7 0 8 7 6 8 , , , 0 7 1 3 5 3 6 4 0 some quarters that another offering of Govern- Ce A n t tr la al n t D a, a n G k a & Trust Corporation, ; ' 1,000,000: 300,000 9,620,109 ment bonds will be made in the month of Jan- Ge Y rm or a k nia Bank of the City of New ! 400,000 ; 600,000 8,731,76(5 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

934 FEDERAL RESERVE BULLETIN. DlCCKMBBR 1, 1917. contain many liberal provisions pertaining to Capital. Surplus. res T o o u t r a c l es. membership of State banks and trust companies. Prior to the enactment of these amendments, I felt a hesitancy in recommend- Passaic Trust & Safe Deposit Co., Passaic,N. J $200,000 §100,000 $7,130,181 j ing membership to our State institutions, but Ut N ic . a Y Trust & Deposit Co., Utica, 400,000 200,000 11,850,975 \ since the privilege of retaining full charter and Bridgeport Trust Co., Bridgeport, statutory rights has been extended, all objec- Conn 500,000 300,000 7,866,545 j Kent State Bank, Grand Rapids, ! tions have apparently been eliminated, and I Th M e i C ch ity Trust & Savings Bank, 500,000 500,000 9,419,740 I am of the opinion that eligible banks will Youngstown, Ohio 200,000 150,000 j find membership exceedingly advantageous. Ci N tiz .Y ens Trust Co. of Utica, Utica, 500,000 400,000 4,752,034 j As I view it, the matter is both a patriotic Th G e r G af r t a o f n to . n W B . a V n a k . i — ng • & . Trust Co., 100,000 30,000 10,641,931 | duty and an economic, expediency. Aside Exchange Bank of Kentucky, 1,180,082 | from the great need at this time for an effi- Mount Sterling, Ky 50,000 25,000 Enderlin State Bank, .Gnderiin, 434,572 j cient mobilization of the banking resources to N. Dak ' 50,000 10,000 fortify our Nation in meeting extraordinary war Worcester Bank & Trust Co., 395,250 Worcester, Mass 1,250,000 500,000 conditions, in my opinion, membership is going Ci n ti a z h e , n s G & a Southern Bank, Savan- 1,000,000 1,000,000 24,123,110 to prove very helpful in solving future prob- Ladd & Tiiton Bank, Portland, 18,537,851 lems and meeting contingencies that are sure Ores I 1,000,000 1,000,000 Philadelphia Trust Co., Philadel- 21,427,913 to arise during the readjustment period after }• phia, Pa I 1,000,000 4,000,000 the war. Just now our Nation and the Federal The Union Trust Co. of Pitts- I 26,160,684 burgh, Pa 1,500,000 34,500,000 Reserve system needs the support of the banks; The Union & New Haven Trust 137,516,868 Co., New Haven, Conn 650,000 500,000 later the banks are going to need the support Pe W op e l s e t s f ie B ld a , n N k . J & Trust Co. of 100,000 80,000 4,574,303 of the system, and now is the time to make the Qneida County Trust Co., Utica, 2,005,718 alliance. &# 250,000 250,000 Westminster Bank, Westminster. 2,428,746 President Wilson, as you know, recently No S e .C l State Bank. Chicago, 111 3 1 0 0 0 0 , , 0 0 0 0 0 0 2 7 5 5 , , 0 0 0 0 0 0 2,5 4 8 5 1 3 , , 7 4 1 3 6 3 issued a call urging all eligible State banks to Grand Rapids Savings Bank, affiliate themselves with the Federal Reserve Grand Rapids, Mich 400,000 350,000 8,479,169 The Brunswick Bank and Trust system to the end that the financial position ! T h .C e o. C , B iti r z u e n n s s w i B ck an , k G a of Norfolk, 100,000 72,000 1,049,176 of the country might be thereby materially Va., Norfolk, Va 600,000 500,000 5,896,002 strengthened. The matter, therefore, is en- Total. 47,210,000 87,301,731 1,190,986,947 titled to the careful and thoughtful consideration of every banker in the State, and if your bank is eligible, a personal interview with the One hundred and seventy-six State instituofficials of the Portland branch would seem tions are now members of the system, having advisable, in order that the advantages of a total capital of $179,865,700, total surplus membership and the policies of the bank may of $248,384,196, and total resources of be fully explained. $4,275,468,908. This department is ready and willing at all times to cooperate with you in every way possible. Membership of State Institutions. Yours, very truly, S. G. SARGENT, The following letter, addressed to the officers Superintendent of Banks. and directors of State banks and trust companies in the State of Oregon, has been issued by the banking department of that State under Organization of Branches. date of November 10: The following is a draft of by-laws for use by Since the establishment of the Portland branch of the Federal Reserve Bank of San branches of Federal Reserve Banks which or- Francisco, State bankers are showing con- ganize as offices of the parent Federal Reserve siderable interest in the Federal Reserve sys- Bank and not as branches assigned a distinct tem, and this office is receiving many letters, capital and territory. It is expected that the asking for information and advice regarding by-laws, as thus presented, will be adopted in applications for membership. ; The amendments to the Federal Reserve practically this form by all branches which are act, approved by the President June 21, 1917, organized on the new basis: Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

DECEMBER l, 1917. FEDERAL RESERVE BULLETIN. 935 By-Laws of Branch Bank of Federal Reserve Bank of SEC. 3.—The collection zone for branch shall be known as the zone, and shall include the fol- Pending the promulgation by the Federal Reserve Board lowing cities: of rules and regulations, under authority of section 3, governing the operations of branch banks, the following bylaws have been adopted by the Federal Reserve Bank of SEC. 4. Reports.—The • - branch shall make a daily , with the approval of the Federal Reserve Board: report to the head office on forms to be prescribed, showing— ARTICLE I. (a) Amounts received on deposit for credit with the head office. SECTION 1. Name and place of business.—This branch (b) Checks paid for the head office. shall have its principal place of business in the city (c) Discounts recommended. of , State of , and shall be known as the (d) Items received for collection and forwarded, and for branch of the Federal Reserve Bank of . which credit should be given by the head office at the SEC. 2. Functions.—Under the direction of the Federal expiration of the time allowed in collection schedule. Reserve Bank, hereinafter referred to as the head office, SEC. 5. Reserve account.—The balance appearing to the its functions shall be: credit of a member bank on the books of the head office (1) To receive from any member bank within the colshall constitute its reserve, but member banks depositing lection zone assigned to it under section 3, Article I, of with the branch may charge the Federal Reserve Bank these by-laws, and from the United States, for credit with with all items on day of deposit unless drawn against banks the head office, deposits of current funds in lawful money, for which allowance is provided in collection schedule, national bank notes, Federal Reserve notes, or checks and in which case such banks may take credit at the expiration drafts payable upon presentation, and for collection, maof such time allowance. Member banks may likewise turing notes and bills. take credit for the proceeds of discounts recommended by (2) When tendered by such member banks within its the local board on the date that the local board or its diszone as may elect to deal directly with the branch, to recount committee recommends the granting of such disceive applications for rediscount under authority of seccounts, provided, the notes, drafts, or bills of exchange tion 13 of the Federal Reserve act, and to transmit such, offered for rediscount, or the note of the applying bank seapplications to the head office with the recommendation cured hy eligible collateral, have been actually received of the local board or of the discount committee selected by the branch. The head office reserves the right to return by the local board. through the branch any items which may be determined (3) To pay checks drawn against the head office by to be ineligible or which, for any reason the head office is member banks within its collection zone out of funds unwilling to accept, in which case items so returned will deposited with the branch by the head office for that be charged to the reserve account of the bank receiving purpose. credit therefor. (4) To act as a clearing house for member banks within its zone and such nonmember banks as may qualify as ARTICLE II. clearing members. SECTION 1. Number and quorum.—The number of di- (5) To provide for the custody of unissued Federal rectors shall be five, of whom the manager shall be one. Reserve notes under appropriate safeguards and to deliver A majority of the directors shall constitute a quorum for Federal Reserve notes when authorized to do so by the the transaction of business, but less than a majority may head office to member banks within its collection zone. adjourn from time to time until a quorum is in attendance. (6) To receive from any member banks or Federal Re- SEC. 2. Vacancies.—Vacancies in the membership of the serve Banks for collection and remittance, or for collection board shall be filled and successors selected in the manner and credit with the head office, or with any other Federal provided by law. Reserve Banks through the head office, items drawn SEC. 3. Meetings.—There shall be a regular meeting of against any bank within its collection zone. the board on the Tuesday next preceding the first Friday (7) To receive from any nonmember bank or trust com- of each month at 10 o'clock a. m., or, if that day be a pany within its collection zone solely for the purpose of holiday, on the first succeeding full business day. The exchange or collection, deposits of current funds in lawful manager shall be empowered to call a special meeting at money, national-bank notes, Federal Reserve notes, any time, or shall do so upon the request of the Federal checks and drafts payable upon presentation, or maturing Reserve Bank of or the written request of any two notes and bills, provided, such nonmember bank or trust directors. Notice of said meeting, if sent by mail, shall company maintains with the head office a balance sufficient be mailed at least one day prior to date of meeting, and if to offset the items in transit held for its account by the given by telegraph or telephone at least two hoursJbefore head office and its branches. the time of meeting. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

936 FEDERAL RESERVE BULLETIN. DECEMBER 1,1917. SEC. 4. Powers.— (a) The board of directors shall super- branch are not specifically prescribed by the by-laws or vise the operation of the branch under direction and con- the board of directors of the branch or the Federal Reserve trol of the Federal Reserve Bank of , subject to such Bank of , they shall be the duties prescribed by regulations as the Federal Reserve Board may prescribe, and the instructions of the manager. and shall exercise the functions prescribed in Article I, SEC. 3. Acting manager.—In the absence or disability section 2, of these by-laws. of the manager, the Federal Reserve Bank of SEC. 5. Directors when present at directors' meetings may appoint an acting manager, who shall exercise the shall receive a compensation of dollars per day for powers and discharge the duties of the manager; and for each day the board is in session, and an allowance to cover such services he shall receive a compensation to be fixed actual necessary expenses incident to attendance at regu- by the Federal Reserve Bank of . lar or special meetings of the board. SEC. 4. Cashier.—The cashier shall have such joint SEC. 6. The directors of the Federal Reserve Bank of custody of all moneys, investments, and collaterals as shall fix the compensation of officers, clerks, and may be delegated to him by the manager, subject to such employees of the branch, subject to the approval of the rules as the board may adopt as to their safety. He shall Federal Reserve Board. countersign all checks for the payment of money signed SEC. 7. All expenditures of the branch shall be subject by the manager. He shall keep the minutes of the board to the approval of the directors of the Federal Reserve meetings and of all committees of the board and perform Bank of •. such other duties as may be assigned to him by the manager, SEC, 8. Order of business.— The following shall be the subject to the approval of the board of directors. order of business at each meeting of the board of directors SEC. 5. Acting cashier.—In the absence or disability of the branch: of the cashier, the board of directors of the branch may (1) Reading and disposition of minutes of the last regular appoint an acting cashier, who shall exercise the powers meeting. and perform the duties of the cashier and shall receive (2) Report of the manager, including information con- a compensation to be fixed by the Federal Reserve Bank cerning banking and business conditions in the branch of . territory, as well as detailed summary of all business trans- ARTICLE IV. acted since last regular meeting and statement of present condition, the latter to include: COUNSEL. (a) Statements concerning clearing operations. | SECTION 1. The general counsel of the Federal Reserve (b) All official correspondence received from the Federal | Bank of shall act as counsel for the branch, and Reserve Bank of . | shall represent the branch in such matters as may be (3) Reports of committees. assigned to him and shall approve all legal documents; (4) Unfinished business. and said general counsel may appoint a local attorney as (5) Approval of reports and recommendations to Federal associate counsel, with a retainer to be approved by the Reserve Bank of . Federal Reserve Bank of . (6) New business. ARTICLE V. ARTICLE III. AUDITOR. OFFICERS. SECTION 1. The auditor of the Federal Reserve Bank SEC 1. The officers, who shall be chosen by the board of shall act; as auditor of the branch. of directors of the Federal Reserve Bank of , shall ARTICLE VI. be a manager, who shall be one of the directors of the branch, and a cashier. They shall hold office during the BUSINESS HOURS. pleasure of the directors of the Federal Reserve Bank of SECTION 1. The bank shall be open for business from 9 a. m. to 2:30 p. m., on each day except Saturdays and SEC. 2. Manager.— The manager shall preside at all di- Sundays, or days or parts of days established as legal rectors' meetings and shall have general charge of the holidays. On Saturdays the bank shall open at 9 a. m. branch and shall be officially designated as u Manager, and close at 12 noon. Branch." The manager shall, jointly with the cashier, have charge of all moneys received or paid out on account ARTICLE VII. of the branch and shall sign all checks for the payment of AMENDMENTS. money as may be authorized by the Federal Reserve Bank of . He shall have custody of all moneys, These by-laws may be amended at any regular directors' investments, and collaterals held by the branch, subject meeting by a majority vote of the entire board of directo such rules as the board may adopt as to their safety. tors of the Federal Reserve Bank of , subject tc In all cases where duties of subordinate officers of the the approval of the Federal Reserve Board. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

937 D2CEMBEK 1, 1917. FEDERAL EESERVE BULLETIN. Credit Needs of Farmers. 47.2 per cent. Similarly, only a little more than one-half of the necessary capital is avail- The Bureau of Markets of the Department able locally in the northwestern and west cenof Agriculture has tabulated reports from tral districts in North Dakota, the percentage banks in several States upon the credit needs for the fall crop 1917 in the northwestern district being 59.9 per cent and for the spring of farmers which can be supplied from local crop 1918 being 53.2 per cent, while in the sources and the department has furnished the ; west central district the percentages are 56 results to the Federal Keserve Board. They per cent and 44 per cent, respectively. Likeare here republished. with the consent of the wise, in the southwestern district of Kansas Department of Agriculture, as follows: the capital available locally is 60.7 per cent for the fall crop 1917 and 45.2 per cent for the The accompanying returns indicate that of spring crop 1918. In the northwestern disthe total amount of capital which the farmer trict of Oklahoma the percentage of available needs to borrow to plant crops this fall and local capital for the fail crop 1917 is 49.2 per next spring in the various States mentioned, cent and for the spring crop 1918, 64.5 per namely, Montana, Idaho, North Dakota, South cent. It will be noted that in such States as Dakota, Nebraska, Kansas, Oklahoma, and Montana, North Dakota, South Dakota, Kan- Texas, the amount available locally is inadesas, and Texas the districts showing the quate. The extent to which available local greatest lack of available local capital for crop capital is insufficient to meet the borrowing purposes are located in areas having relatively needs of the farmers in these States, varies slight rainfall. somewhat between the States and within each of the States. Especially in Montana and North Dakota, and to a less extent in Texas, Estimated percentage, of credit needs of farmers which can be supplied from local sources. Oklahoma, and Kansas, is the insufficiency of local capital apparent, while in the States of [Figures based on reports from banks.] Idaho, South .Dakota, and Nebraska, there is MONTANA. little need on the whole for drawing on outside capital to meet the farmers5 borrowing Percentage available needs for crop purposes. In Montana, the locally of the total amount of money estimated percentage of credit needs of farm- which farmers need to borrow— ers, which can be supplied from local sources, Districts. is 60.6 per cent for the fall crop 1917, and 57.6 To plant per cent for the spring crop 1918. In North T c o ro p ps la i n n t crops in Dakota the corresponding percentages are 74.3 fall of 1917. spring of 1918. per cent and 71.7 per cent, respectively. In South Dakota and Nebraska, on the other Montana 60.6 57.6 hand, the percentage of capital available lo- 1. Northwest 88.7 85.1 cally to meet the borrowing needs of farmers 2. North central 41.1 47.2 3. Northeast 53.4 53.0 ranges above 90 per cent, the exact percentages 4. West central 77.5 71.2 for South Dakota being 92.6 per cent for the 4a. West central 100.0 100.0 5. Central 61.5 60.2 fall crop 1917, and 92.9 per cent for the spring 6. East central 53.5 57.5 7. Southwest 100.0 100.0 crop 1918, the corresponding percentages for 8. South central 88.5 86.6 Nebraska being 90.6 per cent and 93 per cent 9. Southeast 70.4 59.4 respectively. The need for outside capital to meet the IDAHO. borrowing needs of farmers is especially apparent in some of the districts within the Idaho 89.8 89.7 States. Thus, in Montana less than one-half 1. Northwest 93.1 9(3.1 2. North central 0 100.0 of the capital needed in the north central dis- 4. West central 83.8 57.9 trict is available from local sources, the per- 5 Central 97.0 94.9 7. Southwest 95.0 93.7 centage for the fall crop of 1917 being 44.1 8. South central 99.4 94.6 per cent and for the spring crop 1918 being 9 Southeast 86.8 88.5 26416—17 4 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

988 FEDERAL RESERVE BULLETIN. DECEMBER 1,1917. Estimated percentage of credit needs of farmers which can he Estimated percentage of credit needs of farmers which can be supplied from local sources—Continued. supplied from local sources—Continued. [Figures based on reports from banks.] [Figures based on reports from banks.] NORTH DAKOTA. TEXAS. Percentage available locally of the total Percentage available amount of money locally of the total which farmers need amount of money to borrow- which farmers need to borrow— Districts. Districts. To plant fa T c ll o r o o p p f s l 1 a i 9 n n 1 t 7. s c p r 1 r o i 9 p n 1 s g 8 i . o n f fa T c ll o r o o p p f s l 1 a i 9 n n 1 t 7. T s c p o r r o i p p n s l g a i n o n t f 1918. North Dakota 74.3 71.7 Texas 81.5 82.8 2 4 5 6 8 9 . . . . . C W N E S S o e o a o e n u s u r s t t t t t t h h r h c a c e e l c c e a n e e n s t n n t r t r t t . a a r r l a a l . l l . . .. 1 9 5 7 5 8 8 7 8 0 7 7 6 7 9 0 8 6 0 . . . . . . . . . 4 0 8 0 9 5 8 0 8 5 7 9 7 9 4 7 7 8 9 4 3 5 6 3 4 8 7 . . . . . . . . . 4 7 2 2 9 3 6 2 1 2 4 3 5 8 1 4 6 9 . . . . . a . . . . N N C W N S E S W o o e a o o o e n u u s r r r e s t t t t t t t h h t s r h h h c c a t e e w e l c e c c a a n e n e e e s s n t n s t t t n r r t t t a t r a r r l a a l a l l l .. 1 7 9 9 8 9 6 9 7 0 8 1 1 3 3 7 2 9 0 . . . . . . . . . 0 9 7 8 3 3 4 2 0 1 9 6 9 9 5 9 6 7 0 6 S 4 3 2 9 9 8 0 . . . . . . . . . 9 2 9 7 8 3 0 1 0 SOUTH DAKOTA. SUMMARY FOR IMPORTANT STATES. South Dakota 92.6 I 92.9 5 7 8 3 6 2 4 1 . . . . . . . . C W N N S S N E o o e a o o o e n u u s r r r s t t t t t t t t h r h h h h c a c e w w e l c c e a n e e e e n s t s n s n t t r t t r t t a r r a l a a l l l , , , , , , 1 9 9 9 9 8 7 6 0 5 6 7 9 4 5 8 0 . . . . . . . . 4 6 9 9 8 8 6 0 1 9 9 9 9 8 7 7 0 4 6 5 8 5 8 1 0 . . . . . . . . 4 7 3 8 7 5 8 0 I T M N S N O K d o e e o k a a o x u b n l r h n a a t t r s o h t h s h a a a s o s n D D k m a a a a a k k o o t t a a . . . . 8 6 7 9 8 9 8 8 9 0 3 0 4 8 2 1 . . . . . . . . 6 0 8 4 6 6 3 5 5 8 7 9 9 8 8 8 1 7 9 2 3 4 2 1 . . . . . . . . 7 6 7 9 0 8 8 1 9. Southeast 100.0 99.0 NEBRASKA. Nebraska 90.6 93.0 Coupons from United States Bonds, 1. Northwest 100.0 100.0 2. North central 96.7 97.0 The Treasurer of the United States on 3. Northeast 93.8 95.9 4. West central 67.3 86.3 November 5 issued instructions for the handling 5. Central 97.0 95.8 6. East central 99.4 99.7 of coupons from United States bonds, as 7. Southwest 95.8 95.0 8. South central 96.9 99.5 follows: 9. Southeast 98.3 97.4 Coupons from United States bonds are KANSAS. actually payable only on presentation to the Treasurer of the United States, to an Assistant Kansas 83.0 84.8 Treasurer of the United States, or to a Federal 1. Northwest 81.0 89.1 2. North central 92.5 95.2 Reserve Bank or branch thereof. When so 3. Northeast 99.2 98.0 paid they should be canceled by punching a 4. West central 73.5 66.1 5. Central 79.0 85.2 hole one-fourth inch in diameter in the middle 6. East central . 98.9 99.8 7. Southwest 60.7 45.2 of the coupon and near the top thereof through 8. South central .. 84.7 88.1 the words "United States" or immediately 9. Southeast 95.9 97.2 thereunder. The hole must not be punched OKLAHOMA. through the date or number on such coupon, nor through the amount thereon. Coupons Oklahoma 88.4 81.1 should be arranged according to loan and 1. Northwest 49.2 64.5 denomination, 100 of the same kind being put 2 3 . . N N o o r r t t h h e c a e s n t tral 9 9 6 5 . . 7 0 9 9 6 6 . . 6 8 under a strap. The remaining odds, arranged 4. West central 94.3 90.4 by loan and denomination, should be strapped 5. Central 97.4 86.8 6. East central 94.1 54.2 in 100s, leaving only one package containing 7 8 . . S S o o u u t t h h w c e e s n t tral 8 9 4 8 . . 6 3 8 89 6 . . 4 1 less than 100. Each strap should bear a state- 9. Southeast 98.3 91.1 ment in brief of the contents. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

DECEMBBB 1,1917. FEDERAL BESEBVE BULLETIN. 939 The total amount of coupons paid on any accept as a criterion the reduced proportion of particular day should be charged in the Treas- losses sustained by depositors of failed banks to urer's account of that date and listed in the the total deposits of the national banks during "abstract of payments" on the transcript of the past three years as compared with the prethe paying office as "United States coupons ceding 33 years. paid $ __," giving symbol number 17199, Records which have just been compiled show and forwarding in support of the debit a charge that for the 33 years from 1881 to 1914 the document on Form No. 6518 (if a Federal losses to depositors which arose from bank fail- Reserve Bank), or No. 1748 (if a sub treasury)— ures averaged annually during that period "Statement of coupons paid—U. S. bonds." twenty-eight one-thousandths of 1 per cent of This charge document must accompany the the aggregate deposits of the national banks transcript in which the entry is made. during those years. During the fiscal years Coupons should be packed securely, sealed ending June 30, 1915, 1916, and 1917, the perand forwarded, by registered mail, to the centage of losses of failed banks to total de- Treasurer of the United States, Division of posits of all banks has averaged only about Banks, Loans, and Postal Savings, Washing- three one-thousandths of 1 per cent, or less ton, D. C. A statement of paid coupons (Form than one-eighth of what these losses averaged 5686), properly filled out, must be inclosed during the preceding 33 years. with the coupons. The date of this form must This great reduction in losses is largely the correspond »to the date of the transcript of the result of the improved system of national-bank Treasurer's account in which the coupons are examination, of the greater thoroughness exercharged and the total amount shown thereon cised in these examinations, and of the policy must agree with the amount charged in said of requiring national banks to observe more transcript. rigidly the provisions of the law intended for All postal savings loans of series 1 to 6, in- their protection and the protection of their clusive, must be listed by series on Form 5686, depositors and shareholders. while postal savings loans of the seventh and ! The figures show that if the Government or subsequent series must be listed under the head an insurance company had been insuring deof "Consolidated series." posits of all national banks from the year 1881 In order to facilitate the verification of ! to 1914, it would have been necessary to charge coupons and the clearing of such items, it is the banks an annual premium, of 28 cents per urged that each paying agency prepare cou- thousand, or $280 per million, of deposits to pons with care and forward them promptly cover the actual losses, but during the past to the Treasurer the same day they are paid. three years under improved methods of ex- Nothing in these instructions is to be con- amination the losses from national-bank failstrued as prohibiting the holder of United ures have been so greatly reduced that the pay- States coupons from cashing them at any bank ment of less than 3 J cents per thousand, or less or trust company that is willing to accommo- than $35 per million, of deposits would have date its patrons in this respect, or at a post been sufficient to insure the payment in full to office authorized b}^ the Postmaster General to all depositors of all the national banks which cash such coupons. Coupons so cashed, how- have failed during the past three fiscal years. ever, must under no circumstances be canceled These figures were developed as a result of a except by the Treasurer of the United States, special investigation recently made by the an Assistant Treasurer, or a Federal Reserve Comptroller of the Currency into the subject of Bank to whom they have been delivered for national-bank failures in the United States for actual payment. Coupons previously can- the past 36 years, or since July 1, 1881, which celed will not be so paid. has just been completed. The investigation was iiot carried beyond 1881 because detailed figures for those earlier years are not available. Bank Failures. The record shows that the total approximate, loss to depositors for these 36 years on account The Comptroller of the Currency on Novemof all national-bank failures was $36,671,000, ber 19 made the following statement: or 18.87 per cent of the deposits of these failed The national banks of the country are now banks. The average annual loss in the 36-year eight times as safe as they were during the 33- period for the entire country was therefore year period prior to June 30, 1914, provided we $1,018,638. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

940 FEDERAL RESERVE BULLETIN. DECEMBER 1,1917. The largest loss to depositors reported for The reserve and central reserve cities in which banks failing in any one year was for the year the depositors of failed national banks have ending June 30,1897, when the losses to deposi- already received or are expected to receive eventors aggregated $3,815,608, and represented tually in the aggregate at least 90 per cent of the 152 one-thousandths of 1 per cent of the aggre- deposits of the banks which have failed since gate deposits of all national banks at that time. 1881 in these cities, are New York, Chicago, St. The proportion of losses to the total deposits of Louis, Boston, Pittsburgh, Baltimore, San all banks for that particular 3^ear was more than Antonio, Louisville, Minneapolis, Kansas City, forty times as great as the average for the past Mo., and San Francisco. three }^ears. The depositors of the failed banks in the In 1897 the total deposits of all national central reserve cities which failed in this banks amounted to $2,515,000,000 and the period received an average of 98.14 per cent; losses to depositors from failed banks amounted, in the reserve cities they received or are exas above stated, to $3,815,608. For the past pected to receive an average of 82.65 per cent, year, deposits amounted to $12,769,000,000, or j while the depositors in the country banks over five times what they were in 1897, and yet ' received or are expected to receive an average the total losses to depositors of banks which of 75.62 per cent. failed in the year amounted to only about The aggregate capital of all banks which $369,000, or less than one-tenth of what the failed from 1881 to 1917 was $77,533,000, and depositors' losses amounted to for banks failing the aggregate of their deposits at the time of in 1897. suspension was $194,361,000. The approxi- Of the 500 national banks which failed be- mate average payment on deposits was 81.13 tween 1881 and July, 1917, 36 were restored to per cent, while the average percentage of losses solvency. . Of the number that failed 11 were of depositors to total deposits of all national located in the central reserve cities, of which .1 banks each year for the period was 23 onewas restored to solvency; 63 were located in thousandths of 1 per cent. the reserve cities, of which 6 were restored, and 426 were country banks, of which 29 were reopened. From 1881 to July, 1917, there Commercial Failures Reported. were 6 national bank failures in New York City, 4 in Chicago, and 1 in St. Louis. The The highly favorable features which have faifed banks in New York City returned to characterized the insolvency record throughout depositors 94.26 per cent of their deposits. this year continue in evidence, and commercial The St. Louis bank paid 96.60 per cent, and failures in the United States during three weeks the Chicago banks paid an average of 100 per of November, as reported to E. G. Dun & Co., cent, with 1.38 per cent of interest added. Among the 54 reserve cities there are 24 number only 737, against 847 in the same period cities in which there have been no national last year. In October—the latest month for bank failures since 1881. The reserve cities in which complete returns are available—there which there were no bank failures for the period were fewer defaults than for any October in named are Albany, Washington, Richmond, over a decade, with the smallest liabilities, ex- Charleston, Atlanta, Savannah, Birmingham, Galveston, Houston, Waco, Chattanooga, Clove- cepting those of 1916, since 1909. The expanland, Milwaukee, St. Paul, Cedar Rapids, Des sion in the indebtedness in comparison with Moines, St. Joseph, Omaha, Muskogee, Okla- last year was about 82,000,000, or from homa City, Tulsa, Los Angeles, Salt Lake City, $10,775,654 to $12,812,012, but there was a and Ogden. numerical reduction of 158, or from 1,240 to There were 15 reserve cities reporting only 1 national bank failure in this period. These 1,082. Aside from the first, second, and third were Brooklyn, Baltimore, Fort Worth, Louis- districts, where there were, respectively, inville, Nashville, Indianapolis, Detroit, Dubuque, creases of 23, 44, and 29 defaults, and in the Kansas City, Ivans., Topeka, Pueblo, Seattle, ninth district, where there was no change, the Spokane, Portland, and San Francisco. number was smaller than in October, 1916, in The only cities in which losses sustained by depositors of failed banks aggregated in these all of the 12 Federal Reserve districts, the de- 36 years as much as $1,000,000 were Boston, creases ranging from 7 in the fourth district to Philadelphia, and Cincinnati. 75 in the twelfth district. As to the amount Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

DECEMBER 1, 1917. FEDERAL BESEHVE BULLETIN. 941 involved, there was more or less expansion in bank notes and Federal Reserve notes sepaevery instance, except the fourth, tenth, elev- rately for the year ending October 31, 1917, enth, and twelfth districts. are as follows: Failures during October. National-bank Federal Renotes. serve notes. Number. Liabj Districts. New notes printed and delivered by 1917 ; 1916 1917 1916 the Bureau of Engraving and Printing from Oct. 31,1916, to Out. 31,1917. §261,705,870.00 §1,291,280,000 Notes issued by Comptroller's Office N T T S S S E F T F " E F e i e w i o l e i h i i x r e c g v f n u n i s t e o t v h r e h t t r h t l n e h d f t t h n h t h d n . . t . . h h . th . .. 2 1 1 1 1 3 5 0 6 7 6 4 3 5 6 f> 9 3 5 2 9 9 0 4 5 2 9 5 '• i ! i ! . 1 1 1 1 1 1 1 6 7 8 1 0 4 4 7 f 8 7 0 9 5 4 9 0 i 0 5 7 9 1 i $ 3 2 1 1 , , , 2 0 2 9 2 3 9 6 4 6 1 6 4 8 6 4 7 9 0 9 9 5 8 9 6 7 0 2 4 2 3 9 0 3 1 8 , , , . , , , , , , , 2 7 5 4 9 9 1 8 2 4 9 4 6 8 5 0 1 8 2 2 0 8 9 8 9 4 7 9 3 0 0 2 0 1 5 2 2 1 1 1 1 $ , , , , , 4 3 2 8 5 2 5 3 5 4 0 1 3 1 7 0 3 2 9 5 6 3 3 4 3 2 0 0 3 5 9 8 8 8 0 3 , , , , , , , , , , , , 1 1 3 1 9 8 5 4 6 9 8 5 2 6 6 6 6 2 9 7 4 5 6 2 G 3 1 6 3 0 4 5 2 0 7 7 N E E T x x o o d t a s d t O O O o c c h t a t m e u a e e e c c c m r e r l O s s o t t s t o m i . . . s e s u n u a c 3 3 3 e g o g t m p n r 1 1 . d 1 f h o e , t , e s o 3 , d f F r a 1 1 a 1 i u 1 e r 9 e m 9 C o n , 9 e 1 e n 1 d 1 d n 6 d 6 1 o d m e t 9 e , , a 6 m e r 1 d p e t , o e a i t t 7 e d p e o m f o o l t , s o r t n R r i t o n e O O o r o a d a v e e O o d l l c c n w s e l - y c t e t e d b r . e . a t r r a . d a ' 3 n n 3 v s n 1 1 m d 3 o e , k , O d 1 t n o O e 1 1 , e c o u s d 9 9 f 1 t f s n 1 t 1 e n . i 9 e i c 7 o 7 t s t 3 n 1 s e t r t 1 7 r i e i o , s o , s 1 v s s s f y y 9 o a u r u e 1 o v u e e r e d 6 d m e e l d d t , , - r 3 32 3 1 5 5 0 , , , 6 1 5 7 0 7 9 9 0, , , 0 4 4 4 7 3 7 7 0 . . . 3 5 0 0 0 0 8 9 1 4 7 2 7 6 8 , , , 6 4 7 6 3 0 0 0 0 , , , 3 8 0 9 0 0 5 6 0 Total 1 082 1 210 12,812,012 10,775,654 Re O d c u t c . t 3 io 1, n 1 d 91 u 7 ring the year in national- 341,088,330.00 654,940,000 bank notes in vault of 72,889,530.00 Increase during the same period in Fed- Notes Issued and Redeemed. eral Reserve notes in vault of. 177,120,000 Total amount of notes outstanding Oct. 31, 1917 716,276,375.00 928,213,720 The Comptroller of the Currency issued on Reduction during the year in nationalbank notes outstanding of 9,792,915.00 November 20, the following statement relating Increase during the same period in Federal Reserve notes outstanding of. 689,746,800 to the national-bank notes and Federal Reserve notes issued and redeemed through his office Acceptances to 100 Per Cent. during the year ending October 31, 1917, together with the amount of notes of each class Since the Issue of the November BULLETIN in the Treasury vaults on October 31, 1917, and the following banks have been authorized to the amount of notes outstanding in the hands accept drafts arid bills of exchange up to 100 of the public on the same date: per cent of their capital and surplus: Massasoit-Pocasset National Bank, Fall River, Mass.; Total amount of national-bank notes Mechanics National Bank, New Bedford, Mass.; and Federal Ileserve notes issued Importers & Traders National Bank, New through the office of the Comptroller of the Currency during the York City; W. R. Grace & Co.'s Bank, New year ending October 81, 1917 $.1, 301, 970 430. 00 York City; First National Bank, Cleveland, ; Amount redeemed and destroyed Ohio: Savannah Bank & Trust Co., Savannah, through office of Comptroller of the Ga.; Seaboard National Bank, New York Currency, during some period 464, 410, 082. 50 City; Franklin Trust Co., New York City; Sea- Total amount of notes outstanding October 31. 1917 1, 644, 520, 095. 00 board National Bank, Norfolk, Va.; Market Total amount new notes in vaults Street National Bank, Philadelphia, Pa. October 31. 1917 996, 028, 330. 00 The large increase during the year ($689,~ 746,800) in the amount of Federal Reserve Fiduciary Powers. notes outstanding is due mainly to the issuance The applications of the following banks for of Federal Ileserve notes against the deposit of permission to act under section Ilk of the gold or gold certificates with the Federal Re- Federal Ileserve Act have been approved since serve Agents, amount of gold and gold cer- the issue of the November BULLETIN. tificates so held October 31, 1917, being ap- DISTRICT NO. 1. proximately $600,000,000. Trustee, executor, administrator, and registrar of stock The figures as to the printing, issue, and reand bonds: demption and amount outstanding of national- Plymouth National Bank, Plymouth, Mass. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

942 FEDERAL RESERVE BULLETIN". DECEMBER 1, 1917. Trustee, executor, and administrator: accompanying diagrams, indicating the Vermont National Bank, Brattloboro, Vt. changes, month by month, in the amounts of gold in vault, notes in circulation, and, in DISTRICT NO. 2. the case of the French and Russian Central Trustee, executor, administrator, and registrar of stocks and bonds: banks, also amounts of advances to the Gov- Phillipsburg National Bank, Phillipsburg, N. J. ernment carried on the books of the banks. These figures are not specified in the reports DISTRICT NO. 7. of the Bank of England or of the German Trustee, executor, administrator, and registrar of stocks Reichsbank, and for this reason more general and bonds: First National Bank, Manchester, Mass. figures showing the total loans and discounts held by the two banks were chosen. Figures of gold reserve include amounts of gold in vault New National Bank Charters, only, i. e., are exclusive of gold, reported as The Comptroller of the Currency reports the held abroad by both the French and Russian following increases and reductions in the num- banks. ber of national banks and the capital of Notes in circulation shown by the latter two national banks during the period from October banks represent practically the entire paper 27, 1917, to November 30, 1917, inclusive: currency of the countries in question. In Banks. Great Britain the circulation is made up at New charters issued to 12 present largely of currency notes issued by the With capital of $415,000 treasury secured to a large extent by Govern- Increase of capital approved for ,. 13 With new capital of 2,070,000 ment securities and to a much smaller extent by a deposit of coin and bullion with the ex- Aggregate number of new charters and banks increasing capital 25 chequer. On October 31, 1917, the amount With aggregate of new capital authorized 2, 485,000 of currency notes outstanding was $911,057,000, secured by $783,950,000 of Government securi- Number of banks liquidating (other than those consolidating with other national ties, of $138,695,000 of coin and bullion, and of banks) 8 $25,737,000, on deposit at the Bank of England. Capital of same banks 335,000 In Germany the circulation of the country in- Number of banks reducing capital 2 cludes besides the Reichsbank notes also notes Reduction of capital 52, 800 of the other four banks of issue, which, however, Total number of banks going into liquidation or reducing capital (other than those have but local currency and are relatively consolidating with other national banks). 8 unimportant, about 82.8 millions of Imperial Aggregate capital reduction 387, 800 treasury notes, and over $1,300,000,000 of The foregoing statement shows the aggregate of notes of the so-called war loan banks. increased capital for the period of the banks Figures of "advances to the Government" embraced in statement was 2,485,000 and "short-term bonds" shown by the French Against this there was a reduction of capital and Russian banks measure to some extent owing to liquidations (other than for consolidation with other national banks) and the degree of direct assistance rendered to the reductions of capital of 387, 800 Government through the issuance of bank notes. Advances of the Russian bank as Net increase 2, 097, 200 shown under the caption " Short-term treasury bonds" indicate a practically continuous Principal Changes in the Condition of European growth since the outbreak of the war. Direct Banks Since the Outbreak of the War, advances to the Government are also specified Some idea of the effect of war financing on among the assets of the Bank of France, the the status of the principal European banks of totals showing two considerable temporary issue may be had from the following tables and curtailments about the end of 1915 and 1916, Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

DECEMBER 1,1917. FEDERAL BESEBVE BULLETIN. 948 following the consummation of the two funded Bank of England—Continued. "rente" loans. For the Bank of England and [In millions of £ sterling and dollars.] the Reichsbank figures indicating the total loans and discounts outstanding were used, Tsilvef W I Bank of Total securities viz, total "securities," held by the banking bUVCr 111 15s- ; fl c£Icirtcu" d in e par b tm an e k n i t n . g department of the former, and total bills, Date. merits. a including treasury bills, held by the latter. As a MillionsMillionsMillions Millions!MillionsMillions matter of fact the aid given to the Government of £. dol o l f ars. of£. dol o l f ars. of £. dol o l f ars. by these two institutions was primarily through assistance to the private banks rather than by 1917. Jan. 31 56.7 275.9 39.6 192.7 196.1 954.3 direct financing of the treasury. Both these Feb. 28 54.3 264.3 38.6 187.8 199.8 972.3 Mar. 28 54.0 262.8 38.3 186.4 183.6 798.2 banks of course have been discounting short- Apr. 25 55.2 268.6 38.2 185.9 151.9 739.2 May 30 , 55.1 268.1 39.0 189.8 160.1 779.1 term treasury bills, but these bills are re- June 27 57.5 279.8 39.4 191.7 145.5 708.1 July 25 53.1 258.4 39.7 193.2 159.5 776.2 deemed by the Government from the pro- Aug. 29 54.3 264.3 40.4 196.6 163.4 795.2 Sept. 26 55.1 268.1 41.2 200.5 151.8 738.7 ceeds of the long-term funded loans. This Oct. 31 58.0 272.5 42.4 206.3 151.9 739.2 procedure is most clearly indicated by the Bank of France. course of curve 3 in the diagram, for the [In millions of francs and dollars.] German bank, which shows sharp declines between March and April, also between Sep- Gold in vaults. Notes in circula- War advances to tion. Government. tember and October after the consummation Date. of each of the six large loans prior to October MillionsMillions Millions Millions Millions Millions of of of of of Of of the present year. francs. dollars francs. dollars. francs. dollars. Bank of England. 1911. July 30 4,141.3 799.3 6,683.2 1,289.9 [In millions of £ sterling and dollars.] Augustx Septemberl... Date. T s s i o m n u i t l e a g e v l n e a t g n r s o d d . l e i d b n p a a a n n r is t k d - - - Ba l l a a a n c n t k t i u d o a n o n l . f o c t i E e r s c n u i g n - - To i d n t e a p l a s r e b t c m a u n e r k i n t i i n t e . g s J O D a e c n c t . o e 2 1 b m 8 9 e 1 b 5 r . 1 erl 4,233.8 817.1 10,473.5 2,021.4 3,900.0 752.7 Feb.28 4,238.9 818.1 10,962.0 2,115.7 4,400.0 849.2 Millions Millions Mar. 25 4,248.7 820.0 11,176.5 2,157.1 4,700.0 907." 1 of £. dol o l f a rs. ! • | f£. | [dollars. of £. dollars. A M p a r y . 2 29 7 3 4 , , 9 1 1 6 3 9 . . 4 0 8 7 0 5 4 5 . . 6 3 1 1 1 1 , ,5 8 8 2 4 7 . . 4 9 2 2 , , 2 2 8 3 2 5 . . 8 8 5 5 , , 2 5 0 0 0 0 . . 0 0 1 1, , 0 0 6 0 1 3 . . 5 6 June 24 3,927.2 757.9 12.104.7 2,336.2 6,000.0 1,158.0 J A S O N u o u c o l g p t y v . . t . . 2 3 2 2 2 9 8 0 6 5 . 11 . 914. 4 3 5 7 6 3 2 8 2 1 . . . . . 5 9 0 2 9 3 3 2 1 5 0 5 8 1 1 7 4 . . . . 4 4 2 9 3 3 3 3 2 5 5 5 5 9 . . . . . 3 1 0 6 7 ! 1 1 1 1 1 7 7 4 7 7 1 0 4 3 0 . . . . . 8 8 5 2 3 1 1 1 1 5 2 3 4 3 8 4 7 1 9 . . . . . 6 3 6 7 3 6 0 6 6 2 6 8 0 7 8 9 9 4 9 3 . . . . . 1 9 8 9 7 A J N D S O u u e e o c c l g p t y v . . . t . . 2 2 3 2 2 3 8 0 9 6 5 0 5 4 4 4 4 4 , , , , , , 0 8 5 7 2 1 3 5 3 1 6 2 5 0 0 6 5 9 . . . . . . 2 1 0 3 3 3 9 9 9 8 8 7 3 6 1 2 7 9 3 2 8 3 8 7 . . . . . . 9 4 2 0 2 0 1 1 1 1 1 1 3 3 3 4 2 2 , , , , ) , 3 2 8 4 9 5 7 0 6 5 5 9 8 9 7 8 0 2 . . . . . . 4 9 6 3 3 5 2 2 2 2 2 2 , , , , , , 5 6 7 4 4 5 6 7 5 3 9 9 8 6 9 5 0 7 . . . . . . 8 4 4 7 4 5 6 8 5 6 6 7 , , , , , , 9 7 0 3 4 3 0 0 0 0 0 0 0 0 0 0 0 0 . . . . . . 0 0 0 0 0 0 1 1 1 1 1 , , , , , 2 4 3 2 2 9 1 2 3 1 9 6 5 8 1 5 3 5 . . . . . . 9 0 2 7 9 1 Doc. 30 69.5 338.2 36.1 175.7 121.0 588.8 1918. 1915. : Jan.27 5,011.6 967.2 13,858.0 2,674.6 5,400.0 1,042.2 Jan. 27 ! o9.2 336.8 34.7 168.9 130.2 633.6 Feb. 24 5,035.9 971.9 14,295.3 2,759.0 5,700.0 1,100.1 Feb. 24 i 63.9 311.0 34.2 166.4 129.9 632.2 Mar. 30 5,006.3 966.2 14,952.1 2,885.8 6,700.0 1,293.1 Mar. 31 i 53.9 262.3 35.2 171.3 184.6 898.4 Apr.27 4,803.6 927.1 15,278.0 2,948.7 7,200.0 1,389.6 Apr. 29 55.2 268.6 34.7 168.9 197.8 962.6 May 25 4,731.5 913.2 15,435.0 2,979.0 7,500.0 1,447.5 May 26 i 61.7 300.3 32.9 160.1 190.3 926.1 June 29 4,492.2 867.0 15,805.7 3,050.5 7,900.0 1,524.7 N J J A S O u u e u o c n l p g t v y e . . t . . 2 2 3 2 2 2 7 8 0 4 5 9 .-... 1 ! ! 5 5 6 5 6 0 2 2 6 1 0 7 . . . . . . 5 2 2 5 9 3 2 2 3 2 2 2 5 7 5 9 2 9 5 6 3 4 9 7 . . . . . . 4 5 5 0 3 5 3 3 3 3 3 3 . 3 4 3 2 2 1 . . . . . . 3 6 5 8 8 8 i 1 1 1 1 1 1 5 5 6 5 6 6 9 9 2 8 4 3 . . . . . . 6 6 1 4 0 8 1 2 2 1 1 1 1 1 4 6 0 8 7 5 3 5 7 4 . . . . . . 0 5 6 8 4 0 I 1 5 5 9 7 9 1 ; 6 6 1 9 9 9 2 9 3 6 2 4 . . . . . . 1 9 4 2 2 8 A D J S N O u u e e o c c l g p t y v . . . t . . 2 2 2 3 3 2 6 8 7 1 0 8 3 3 4 4 4 4 , , , , , , 2 3 7 1 2 5 4 6 8 5 3 1 7 8 4 9 2 5 . . . . . . 4 2 0 6 5 8 6 8 8 8 7 8 1 5 0 1 2 7 9 2 6 2 8 1 . . . . . . 9 6 5 1 5 7 1 1 1 1 1 1 6 6 6 6 6 6 ) , , , , , 6 5 4 7 0 1 7 8 2 1 9 1 8 9 4 4 0 9 . . . . . . 8 2 6 1 5 9 3 3 3 3 3 3 , , , , , 2 2 1 1 1 2 1 0 6 1 0 2 9 9 1 1 5 5 . . . . . . 0 9 1 7 5 8 8 8 8 6 8 7 , , , , , , 5 6 5 4 4 3 0 0 0 0 0 0 0 0 0 0 0 0 . . . . . . 0 0 0 0 0 0 1 1 1 1 1 1 , , , , , , 4 2 6 6 6 6 2 5 5 2 4 0 8 4 9 1 0 1 . . : . . . 2 5 2 8 9 5 Dec. 29 51.5 250.6 35.3 171.8 144.9 705.2 1917. 1916. Jan. 25 !3,326.9 642.1 17,328.2 3,344.3 8,100.0 1,563.3 Jan. 20 52.2 254. 0 33.8 164.5 145.0 705.6 Feb. 22 |3,198.9 617.0 17,888.5 3,452.5 8,800.0 1,898.4 Feb. 23 55.0 I 267.7 32.5 158.2 126.2 614.2 Mar. 29 !3,252.4 627.7 18,459.8 3,562.7 9,500.0 1,833.5 Mar. 29 56.7 i 275.9 33.6 163.5 121.2 i 589.8 Apr. 26 |3,294.5 635.8 19,009.9 3,668.9 9,900.0 1,910.7 Apr. 2(5 58.9 ' 286.6 34.1 165.9 121.6 I 591.8 j May 31 3,239.9 625.3 19,479.4 3,759.5 10,500.0 2,026.5 May 31 60.2 293.0 35.4 172.3 110.8 539.2 June 28 3,253.2 627.9 19,823.1 3,825.9 10,600.0 2,045.8 Juno 28 61.4 298.8 35.9 174.7 129.5 630.2 July 26 3,263.6 629.9 20,201.7 3,898.9 10,700.0 2,065.1 July 28 56.4 274.5 36.0 175.2 .117.4 571.3 Aug. 30 3,274.7 632.0 20,568.9 3,969.8 11,200.0 2,161.6 Aug. 30 56.2 273.5 36.2 176.2 134.1 652.6 Sept. 27 3,282.3 633.5 20,994.8 4,052.0 11,650.0 2,248.5 Sept. 27 53.6 260.8 36.5 177.6 137.6 669.6 Oct. 25 3,289.0 634.8 21,705.3 4,189.1 12,150.0 2,345.0 Oct. 25 56.1 273.0 36.7 178.6 144.6 I 703.7 Nov. 29 ">6.0 272.5 37.7 183.5 j 146.5 | 712.9 Dee. 27 54.3 204.3 39.7 193.2 I 163.6 1 796.2 1 No bank statements issued. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

944 FEDERAL RESERVE BULLETIN. DECEMBER 1, 1917. 60LD IN VAULT, BANK NOTES IN CIRCULATION:ETC, OFW£L£APIN6 EUROPEAN BHiifCS OF..fSSUE;SfNCE THE* OUTBREAKOF_TM£\IVAR. 1 1 • f j Isr ^ Tt T kf M y!T. p \ms si 1 $ • i • jlf i f/ 7000 7000 eooo J 6000 J f 5000 SOOO / f 4CW / 4000 j J i r* H i r\ 2OO0 r am. pa / fQQQ 1000 **^ i J 1 Q 0 Cizrref.- Gold, ut Phu&. Curve ZsJwtes zn> &rv$tfa£wn,. ! 1 .} ^5 *? bar rt/|^> li If /' Ml I ! 3500 — i ! / 1 3500 1 r !• . , / If / 3CW \ - i / j '• /h / ! ! /!\ \ J % ' \L \ " j Z500 A /i\ • \ " / / • I » . \ / 2033 • / ' ' M \ / 13 aooo > '"1 ' —1 1600 \- jr —\— 1 ! ---150Q 4* / S \ LJ A V- -A /OX) w—< GOG V I \ )—4 300 ?=*F—' 600- *** J I 6 13]<4> 1 J&fJ? I I&!f5 1 13 IP Gzrv&l:&Gl& in, YajuZt. Qxrvc 2: J/bdes ui CirculaCww. Cvurve3.° .3$ilZ$ Gtisc0vm£e&, iitcl, Jreasury jBills and, Jfdpojzces. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

,1917. FEDERAL RESERVE BULLETIN GOLD IN VAULT.BANK NOTES IN CIRCULATION, ETC, OF THE LEA Pi NO EUROPEAN BANKS OF ISSUE, SWCE THE OUTBREAK OF THE WAR. I3I4- IBIS 18 IF Cwrvel: &od Carve 3; Sect&rtuss in, Jd S Carre2.- Jfotes in Actual Cv 'SIS j !3Ip :—: ! ta Curve!.- Gold tit Vcuzfc. Gwve2.Jw£es in (Xra&lation,, G&ri>e3.J?d,V(znjces &o tine. Oav&nwneht since £h&7t&r* 26416—17 5 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

946 FEDERAL RESERVE BULLETIN. DECEMBER 1,1917. Russian State Bank. German Ueichsbank. [In millions of rubles and dollars.] [In millions of marks and dollars.] Gold in vault. Notes t i i n o n c . ircula- T t r e e r a m su r b y o n s d ho s. rt- Gold in vault. Notes t i i n o n c . ircula- Di a s d co v u a n n t c s e a s. nd Date. Date. Millions Millions Millions Millions Millions ! Millions Millions Millions Millions Millions Millions of of of of of of i of of of of of Rubles. Dollars. Rubles. Dollars. Rubles. Marks, i Dollars. Marks. Dollars. Marks. Dollars. 1914. 1914. July 21.... 1,601.1 824.6 1,634.1 841.6 July 31 1,253.2 298.3 2,909.4 692.4 2,283.3 543.4 Aug. 29... 1,607.5 827.9 2,431.4 1,252.2 Aug. 31 1,556.5 370.4 4,234.9 1,007.9 4,855.0 1,155.5 Sept. 29... ! 1,613.5 831.0 2,613.3 1,345.8 Sept. 30 1,716.1 408.4 4,490.9 1,068.8 4,786.4 1,139.2 Oct. 29.... 1 1,622.5 835.8 2,706.3 1,393.7 Oct. 31 1 1,858.3 442.3 4,170.8 992.7 2,809.1 668.6 Nov. 29... 1,554.2 800.4 2,814.7 1,449.6 423.1 217.9 Nov. 30 1 1,991.3 473.9 4,205.4 1,000.9 2,968.2 706.4 Dec. 29.... 1,553.6 800.1 2,863.9 1,^74.9 496.5 255.7 Dec. 31 ; 2,077.2 498.1 5,045.9 1,200.9 3,959.4 942.3 1915. 1915. I Jan. 29.... 1,557.3 802.0 2,997.9 1,543.9 859.6 442.7 Jan. 30 ! 2,163.8 515.0 4,658.6 1,108.7 3,826.3 910.7 Feb. 21... 1,569.0 808.0 3,076.8 1,584.6 1,001.0 515.5 Feb. 27. 2,270.6 540.4 4,862.7 1,157.3 4,138.2 984.8 Mar. 29... 1,571.3 809.2 3,198.3 1,647.1 1,131.5 582.7 Mar. 31. 2,337.5 556.3 5,624.0 1,338.5 6,876.6 1,636.6 Apr. 29... 1,573.2 810.2 3,277.3 1,687.8 1,453.3 748.4 Apr. 30 2,268.5 539.9 5,310.3 1,263.9 3,807.2 906.1 May 29... 1,574.2 810.7 3,416.3 1,759.4 1,592.0 819.9 May 31 2,379.5 566.3 5,317.9 1,265.7 4,164.4 991.1 June 29... 1,577.2 812.3 3,582.6 1,845.0 1,549.1 797.8 June 30 2,387.6 568.2 5,840.3 1,390.0 4,933.4 1,174.1 July 29... 1,578.6 813.0 3,831.8 1,973.4 1,847.2 951.3 July 31 2,400.7 571.4 5,538.2 1,318.1 4,801.6 1,142.8 Aug. 29... 1,585.5 816.5 4,092.3 2,107.5 2,368.7 1,219.9 Aug. 31 • 2)410.2 573.6 5,564.3 1,324.3 4,957.0 1,179.8 Sept. 29.. 1,590.8 819.3 4,621.8 2,380.2 2,395.5 1,233.7 Sept.30 j 2,419.4 575.8 6,157.6 1,465.5 7,483.7 1,781.1 Oct. 29... 1,598.3 823.1 5,018.0 2,584.3 3,140.0 1,617.1 Oct. 30 2,428.8 578.1 5,946.4 1,415.2 4,225.4 1,005.6 Nov. 29.. 1,608.3 828.3 5,164.6 2,659.8 3,326.9 1,713.4 Nov. 30 2,435.3 579.6 5,999.4 1,427.9 4,687.5 1,115.6 Dec. 29... 1,611.7 830.0 5,304.6 2,731.9 3,244.6 1,671.0 Dec. 31 2,445.2 582.0 6,917.9 1,646.5 5,816.2 1,384.3 1916. 1916. Jan. 29.... 1,616.4 832.4 5,604.5 2,886.3 3,375.9 1,738.6 Jan. 31 2,453.5 583.9 6,502.4 1,547.6 5,294.8 1,260.2 Feb. 29.... 1,620.9 834.8 5,806.5 2,990.3 3,781.4 1,947.4 Feb. 29 2,457.1 584.8 6,554.3 1,560.0 5,797.2 1,379.7 Mar. 29.... 1,625. 7 837.2 5,935.9 3,057.0 3,849.4 1,982.4 Mar. 31 2,460.1 585.5 6,988.1 1,663.2 8,124.4 1,933.6 A J M J A S N D O u u e e p u o c a n l p c y r t g v y e . . . t . . . 2 2 2 2 2 2 2 2 2 9 9 9 9 9 9 9 9 9 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | i i | : 1 1 1 1 1 1 1 1 1 , , , , , , , , , 4 5 4 5 6 5 5 5 5 4 4 7 6 2 5 4 5 5 7 0 2 6 8 8 1 3 1 . . . . . . . . . 4 3 6 8 8 8 5 3 0 7 8 8 7 7 7 7 7 7 5 5 3 0 9 9 9 9 9 5 8 3 8 2 6 3 9 8 . . . . . . . . . 4 4 9 9 8 9 3 8 8 8 8 6 6 6 6 6 7 7 , , , , , , , , , 2 5 4 2 7 9 2 8 3 8 4 6 5 5 9 4 3 0 6 3 0 4 3 4 4 1 5 . . . . . . . . . 2 9 1 9 1 1 1 2 3 3 3 4 3 3 3 4 3 4 , , , , , , , , , 2 4 3 2 5 4 7 2 0 3 1 2 8 7 6 2 4 4 7 8 0 4 7 1 4 0 1 . . . . . . . . . 4 2 9 9 6 8 5 1 1 6 6 3 3 3 3 3 4 5 , , , , , , , , , 0 5 7 7 7 5 8 3 8 7 6 9 6 3 2 9 6 1 3 2 5 2 4 4 0 7 8 . . . . . . . . . 4 4 2 2 6 8 0 1 5 3 3 2 2 2 1 1 1 1 , , , , , , , , , 3 1 7 0 4 9 8 9 9 6 6 2 0 8 5 3 1 3 4 7 5 5 1 4 7 2 7 . . . . . . . . . 4 8 7 1 5 6 5 5 8 J J M A A S N D O u u e e u o p c a n l p c y t g v r y e . . t . . . . 2 3 3 2 3 3 3 3 3 9 0 1 9 0 0 0 1 1 2 2 2 2 2 2 2 2 2 . , , . , , , , , 4 4 5 4 5 4 4 5 4 6 6 1 2 6 6 8 0 6 5 4 8 0 9 4 7 1 6 . . . . . . . . . 7 4 5 5 0 8 8 8 1 i ! ! : 5 5 5 5 5 5 5 5 8 9 9 9 8 8 8 8 6 1 6 9 7 6 5 7 . . . . . . . . 5 4 4 4 6 8 9 3 6 u 8 7 7 7 7 7 7 , , , , , , , , , 7 2 3 2 1 3 0 0 u 3 4 7 6 1 3 2 5 » 7 0 0 0 7 3 4 4 u . . . . . . . . . 6 5 0 0 9 7 4 7 a 1 1 1 1 1 1 1 1 1 , , , , , , , , , 6 7 5 6 9 7 7 6 7 0 2 9 1 2 7 4 9 5 3 3 3 7 7 1 5 4 4 . . . . . . . . . 5 2 0 9 9 8 4 1 1 1 5 6 6 5 7 7 8 9 0 , , , , , , , , , 5 5 6 6 0 8 1 0 7 0 5 2 1 9 9 3 8 6 7 4 1 9 0 1 8 8 9 . . . . . . . . . 9 7 5 5 2 4 1 3 1 2 1 1 1 1 2 1 1 1 , , , , , , , , , 2 3 5 2 5 5 9 6 8 8 6 1 2 7 6 2 8 7 9 0 2 5 0 3 5 7 8 . . . . . . . . . 4 0 9 9 9 1 0 5 2 1917. 1917. Jan. 29.... 1,475.4 759.8 9,204.6 4,740.4 7,126.5 3,670.1 Jan. 31 2,524.4 600.8 7,858.5 1,870.3 8,190.0 1,949.2 Feb. 21.... 1,474.9 759.6 9,557.2 4,922.0 7,640.4 3,934.8 Feb. 28 2,527.3 601.5 8,107.2 1,929.5 8,997.9 2,141.5 Mar. 29.... 1,479.5 761.9 10,277.8 5,293.1 8,339.4 4,294.8 Mar. 31 2,530.6 8,616.0 2,050.6 13,606.0 3,238.2 Apr. 29.... 1 479.8 762.1 11,186.6 5,761.1 9,372.9 4,827.0 Apr. 30 2,532.6 8,315.4 1,979.1 8,714.8 2,074.1 May 29.... 1,479.5 761.9 11,765.3 6,059.1 9,053.8 4,662.7 May 31 2,567.1 611.0 8,285.2 1,971.9 9,364.5 2,228.8 June 29 1,480.9 762.7 12,592.0 6,484.9 10,193.3 5,249.5 June 30 2,457.3 584.8 8,698.7 2,070.3 10,962.5 2,609.1 July 29.... 1,291.6 665.2 13,646.1 7,027.7 11,162.6 5,748.7 July 31 2,402.2 571.7 8,852.7 2,106.9 11,127.8 2,648.4 Aug. 29.... 1,297.9 668.4 14,676.2 7,558.2 12,037.4 6,199.3 Aug. 31 2,403.0 571.9 9,337.1 2,222.2 11,364.6 2,704.8 Sept. 29... 1 295.2 667.0 15,887.0 8,181.8 Sept. 29 2,404.0 572.2 10,204.9 2,428.8 15,632.5 3,720.5 Oct. 29.... 1,295.2 667.0 18,362.1 9,456.5 Oct. 23 2,404.5 572.3 10,138.7 2,413.0 11.553.1 2,749.6 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

DECEMBER 1,1917. FEDERAL KESERVE BULLETIN. 947 GOLD SETTLEMENT FUND. including amounts standing to the credit of Federal Reserve Agents, show a further increase Government financing, mainly payments on and now aggregate $737,612,110, as compared account of subscriptions to the second Liberty with $679,184,260 on October 18 and $272,- Loan and for the most recent issue of United 320,000 at the beginning of the present calendar States certificates of indebtedness, apparently year. account for the largely increased volume of Below are given figures showing changes in clearings through the gold settlement fund durthe fund between October 18 and November 22, ing the five weeks ending November 22, 1917. inclusive: Combined clearings and transfers for the week ending November 22 show the record total of Amounts of clearings and transfers, Federal Reserve Banks, $1,092,920,000, total clearings and transfers for from Oct. 25 to Nov. 22* 19T7., inclusive. the period under consideration amounting to [In thousands of dollars.] $4,352,629,000, or over 14.8 per cent of the ! Total Balances total clearings and transfers through the fund ; clearings. adjusted. Transfers. since its establishment in May, 1915. Changes j Settlement of— ' in the ownership of gold in the fund amounted Oct. 25,1917 ; 752,087 84,248 83,900 Nov. 1,1917 i 695,925 61,592 120,500 to only 1.77 per cent of the obligations settled, i Nov.8,1917 1 685,695 88,425 152,250 i Nov. 15,1917.. i 45,923 71,490 as against 7.42 per cent for the four weeks end- Nov. 22,1917 i 979', 96,890 113,000 ing October 18 and 2.04 per cent from May 20, Total I 3,811,489 377,078 541,140 1915, to November 22, 1917. Previously reported for 1917.... I 16,603,006 1,509,004 1,708,365.5 Total since Jan. 1,1917.... 20,414,495 2,249,505.5 As may be seen from the table showing the Total transfers Jan. 1, 1917, to date 2,249,505.5 changes in the ownership of gold, the New Total for 1916, including trans- \ fers i 5,633,966 York, Boston, and Chicago banks report a Total for 1915, including transfers ! 1,052,649 heavy movement of funds to other Federal Total clearings and trans- ! Reserve districts, mainly to Richmond, At- fers, May 20, 1915, to \ Nov. 22,1917 29,350,615.5 lanta, and St. Louis. Balances in the fund, Changes in ovmership of gold. [In thousands of dollars.] Total changes from Total to Oct. 18,1917. From Oct. 18 to Nov. 22,1917, inclusive. May 20,1915, to Nov. 22, 1917. Balance Federal Reserve Bank of— to credit Oct. 18, Balance, Decrease. Increase. 19 n 1 e 7, t d p e l - us Nov. 22, Decrease. Increase. Increase. posits of 1917. gold since that date. Boston .1540,407 821,979 $16 $21,963 $18,444' New York §576,422 52,201 I 28,507 23,694 $600,116 Philadelphia 67,499 26,962 1 33,511 $6,549 74,048 Cleveland 93,993 49,809.6 j 58,485.6 8,676 ! 102,669 Richmond 26,626 28,701.5 I 44,371.5 15,670 ! 42,296 Atlanta 36,843 1-1,636 i 13,545 15,181 i 52,024 Chicago 70,033 94,472.66 j 74,938.66 19,534 50,499 St. Louis 19,510 10,611 j 26,140 "i5,"529"!!".!!".!!!!I!! 35,039 Minneapolis 21,311 18,198 j 15,894 19,007 Kansas City 60,942.5 39,912.35 j 30,217.35 51,247.5 Dallas 41,544.5 9,901 I 19,204 9,303 50,847.5 San Francisco. 97,713 24,787 31,069 6,282 i 103,995 Total.... 576,422 576,422 j 375,899.11 375,899.11 77,190 77,190 ! 600,116 600,116 1 Debit, Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

948 FEDERAL RESERVE BULLETIN. DECEMBER 1,1917. Gold settlement fund—Summary of transactions from Oct. 18 to Nov. 22, 1917, inclusive. [In thousands of dollars.] _ j Balance Gold. Weekly statements 1 f 9 r 1 o 7 m . Oct. 18 to Nov. 15, 1 N 91 o 7 v , . b 2 a 2 l , - ! last state- ance in Federal Reserve Bank of— I mentf Oct. fund after | 18,1917. With- Net close of drawn. Deposited, i Debit. credits. business, Boston I $17,779 87,000 $11,200 $19,000 $12,671 $259,876 $256,913 $9,708 S16 New York ! 46,601 10,000 15,600 121,850 $412,000 313,844 1,390,208 1,076,364 28,507 Philadelphia 41,947 59,950 44,965 79,000 357,108 442,717 85,549 33,511 Cleveland... 57,672.4 18,351.8 10,489 54,000 279,308 341,984 62,676 58,485.6 Richmond... 31,021.6 14,702.1 12,382 46,000 6,000 163,909 219,579 55,670 44,371.5 Atlanta 3,793.25 13,050 7,620.75 4,000 7,400 94,401 106,182 13,465 13,545 Chicago 63,381.18 j 53,010.5 84,102 36,600 31,000 510,741 496,807 25,925 74,938.86 St.sLouis 20,958 ! 12,750 2,405 15,000 10,000 241,367 261,896 21,327 26,140 Minneapolis. 9,908 i 9,000 17,290 27,390 116,965 142,051 25,086 15,894 Kansas City 40,524.45 7,507 6,894.9 49,000 3,390 2,954 150,025 185,940 38,869 30,217.35 Dallas ! 14,441.4 8,740.4 4,200 24,300 8,000 85,453 111,056 25,603 19,204 San Francisco 18,985 14,540 65,000 63,350 5,268 ; 162,068 170,000 13,200 31,069 Total | 377,257.26 233,046.8 231,688.65 j 541,140 541,140 377,078 3,811,489 ; 3,811,489 377,078 375,899.11 Federal Reserve Agents' fund—Summary of transactions from Oct. 18 to Nov. 22, 1917. [In thousands of dollars.] ! ! Balance Balance Federal Reserve Agent at— O m s c l t a c t a . s n t t 1 e t, 8, d w r G a i o w t l h d n - . po G d s o e it - l e d d. N Ba o 1 l 9 v a 1 . n 7 2 . c 2 e , , Federal Reserve Agent at— | | O m s c l t a e t a . s n t t 1 e t. 8, d w r G a i o w t l h d n - . po G s d o i e t - l e d d. B N a o 1 l 9 v a 1 . n 7 . 2 c 2 e, , 1917. 1917. Boston $2,000 $2,000 Minneapolis j $18,500 i $8,000 $4,000 $14,500 Philadelphia 32,939 $32,265 $53,950 54,624 KansasCity i 23,360: 500 5,500 28,360 Cleveland 20,000 300 10,300 30,000 Dallas j 9,674: 2-300 3,500 10,874 Richmond 24,800 6,700 31,500 San Francisco i 26,366 14,850 18.985 30;501 Atlanta. 31,470 *""6."456' 13,050 38,070 Chicago.., 90,358 51', 889 49,010 87,479 Total | 301.927 i 117,959 177, 745 361, 713 St. Louis., 22,460 i 1,405 12,750 33,805 Operation of the Federal Reserve clearing system,, Oct. 16 to Nov. 15, 1917. It ( e e d b m r a a a i n s l l y k R s d a e v s r e a i e n r w r v a n e g F e c e ) i o . d t y n - i j | ! I ( t d b e F a t a m s i e r n e l i s d y r c k e v t d s a r e r a v o i a n l c e u w i r t R d t a s n y i i e g s d - e o - e ) n . I d b te i a s m n a tr k v s i s e c d r t i s r a n a g ( w o e d t ) n a h . i e o ly r n To o U o ( t d f n a n a l i i i T t l t e y e r d m e ( a a e s v s x e u c r d r S l a e u r t g r a s a e i w t v ) e o . n e s f I ( U d te T a n m i r i l e y s t a e d s d a u r v a r e S e w r t r a a n o g t e f o e s n ). N b m b e a b u e r n e m m r k o s - - f N b m n e b o u e r e n m m r o - i - - ; in banks dis- on par ! N b u o m r. - ! ! Amount. N b u e m r. - Amount. ^"P Amount, ^urn- Amount trict list. Boston 2,643! $12,368,304 37,331 $4,922,785 3,805;$6,526,287 43,779 $23,817,376 2,018 Sl,640.098:: 397 241 New York 5,350] 72.910,887j 38,592 15,910,259 21,870i 12.636; 673 65,812 101,457,819 15,887 6.610.037! 651 345 Philadelphia.. 16,616,966! 19,477 3,151,195 10,071J 11.910,933 44,406 3li 879,094 1,695 1,543,442! 628 298 Cleveland 4,205,977 19,167 10,337,157 1,401| 2,386,400 22,098 16; 929,534 '326 237,448j 756 565 Richmond l'253 4,302,908 20,850 6,978,792 2,195J 5,071,431 24,298 16,353.131 404 183,541| 526 265 Atlanta 1,421 2,096,599 11,318 2,904,034 1,3111 2,192,344 14,050 7,192; 977 490,051i 431 337 Chicago 8,480 21,812.000 18,641 4,515,000 1,935! 594,000 29,056 26,921,000 1,424,000! 1,066 2,221 St. Louis 2,167i 11,556,021 10,979 3,009,231 228! 2,390,894 13,374 16,956,146* V 884,942j 477 1,005 Minneapolis... 2,599i 6,822,141 13,274 1,410,516 911j 2.035,527 16.784j 10,268,184! 64,150 768 1,024 K D Sa a a n l n la s F s a r a s n C c i i t . s " y c . o .. . 2 3 1 , , , 1 8 2 9 7 0 4 5 4 ! , 6 5 1 , , , 5 8 4 6 5 3 9 8 2 , , , 8 8 2 9 5 2 0 8 2 1 1 1 6 3 3 , , , 5 3 1 9 5 3 9 8 7 6 2 2 , , , 5 1 4 6 1 7 6 7 3 , , , 3 4 4 5 2 6 2 0 9 7 5 7 5 6 1 5 1 , . 3 6 3 5 1 7 1 9 5 , , , 0 1 0 9 7 6 9 4 5 ! ; ! 1 1 1 9 4 7 ; , , 8 5 5 9 7 6 3 1 9! 1 5 8 8 , , , 8 5 0 0 2 3 8 0 4 , , , 3 8 3 0 4 9 6 7 6 ! i 1 1 , , 1 2 2 2 8 7 2 6 4 0 4 7 3.5 7 1 5 4 1 4 6 8 ; , , O 2 9 9 O 6 7 O 8 ! | i 9 6 5 5 3 3 5 3 8 1 1 . , 2 1 5 6 2 2 3 0 5 Totals: I Oct. 16 to Nov. 15, 1917. 47,574 166,552,773 232,723 61,298.210 45,393 53,089,827 325, 283.938.810:30,426 17,496,974 7, 9,210 J S A u e u l p y g t . . 1 1 1 6 6 6 t t o t o o A S O u e c g p t . t . . 1 1 1 5 5 5 , , 1 , 1 1 9 9 9 1 1 1 7 7 7 . . 3 3 4 6 6 0 , , , 3 7 5 0 2 9 6 7 1 1 1 9 2 0 8 8 0 , , , 0 3 2 7 3 7 5 1 1 . , , 6 9 4 9 1 6 4 9 6 2 1 1 1 7 8 2 5 2 , , , 9 6 1 3 2 9 5 5 1 4 4 4 0 1 7 , , , 4 3 3 7 5 2 6 3 3 . , , 2 2 6 0 7 2 4 8 1 3 3 4 2 1 0 , , , 5 2 2 6 7 1 4 3 6 3 44 4 « 4 4 7 0 4 0 ,, ,, , 9 6 ^ 9 6 9 9 8 4 8 4 8x ,1 44 88 , 0 , , , W 5 1 0 1 58x 6 2 6 81 8 2 8 1 ' 2 2 2 9 4 5 3 3 1 ,7 , , 6 0 4 2 6 2 1 5 ! ! ! 2 1 1 2 7 8 0 6 2 , , , 7 4 3 3 1 0 2 0 3 , , , 2 2 4 5 1 8 1 9 3 ! ! ! 2 2 1 3 6 9 , , , 5 4 7 3 9 9 3 2 7 l 1 9 i 3 , ; . 7 5 0 0 1 0 1 8 6 , , , 5 5 5 6 6 1 9 6 5 7 7, , 7 7 .1 4 ..8 7 9,052 June 16 to July 15,1917. 38,476 109,722,256 182,622 41,004.720 33,941 46,762.698" 255,039]197,489,674119,100 11,637.899 7. 8,805 May 16 to June 15,1917. 37,898 97,322,883 179.193 38,599,461 38314; 393 250,2411174; 238,737!16.344 4,414,508 7,651 8,789 Apr. 16 to May 15,1917. 33,767| 87,370,859 171,093 36,473,163 238,288 160,680,956!15,925 3,597,865 7,634 8.926 Mar. 16 to Apr. 15,1917. 31,162j 60,288,002 168,607 32,666,959 32,008j 34,693,542 231,777 127.618,503! 12,582 2,643.408 7.625 8; 607 j Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

949 DECEMBER 1,1917. PEDEEAL BESEKVE BULLETIN* INFORMAL RULINGS OF THE BOARD. Below are reproduced letters sent out from The Board, after consultation with counsel, time to time over the signatures of the officers is of the opinion that there is no provision in the Federal Reserve Act which authorizes a or members of the Federal Reserve Board Federal Reserve Bank to rediscount a particiwhich contain information believed to be of pation certificate, because even though the general interest to Federal Reserve Banks and original note is eligible for rediscount, a particimember banks of the system: pation certificate nevertheless is nothing more than the evidence of an equitable interest in Drafts Drawn "On or Before 90 Days After Sight." that original note, and does not in any way repre- (To a Federal Reserve Bank.) sent a legal claim against the maker of the note. Should a Federal Reserve Bank rediscount a I have your letter of November 2, inclosing participation certificate, there would be nothing a letter from the Bank in regard to bills to prevent the holder or trustee of the original drawn "on or before 90 days after sight." note from selling or otherwise disposing of it to I agree with you that we should not encoura bona fide holder for value, in which event the age or countenance this practice. If the bank Federal Reserve Bank which had rediscounted accepts, it ought to accept for a definite period, the participation certificate would have no otherwise the acceptance becomes in effect a claim whatever against the maker of the origilimited demand note, or rather a certified nal note, and no right to its proceeds against a check to be presented within a limited period holder in good faith. of time. If an acceptance of this kind passed into the hands of a third party (other Entirely apart from the risk involved, it does than the acceptor or the drawer), this third not seem that those sections of the Federal Reparty could then according to his own require- serve Act which authorizes the rediscount of ments present this note for payment on any day notes, drafts, or bills of exchange can possibly he pleased, and probably the acceptor could not be construed as authorizing the rediscount of an be put in funds in time. There may be condi- [uitable interest in such notes, drafts, or bills tions where the drawer—the goods being still in course of transportation—would not be in NOVEMBER 1, 1917. a position to cover the acceptor, even when requested by the latter to do so. All that is required, I believe, is an under- Public-Service Corporation Paper. standing with the Federal Reserve Bank that (To a Federal Reserve Agent.) it woula permit the acceptor to take up its acceptance before maturity under rebate, and Receipt is acknowledged of your letter of the if a Federal Reserve Bank wants to encourage 14th instant, asking for the views of the Board his business there is no reason why the Federal as to the eligibility of notes of certain public- Reserve Bank could not make such an ar- service corporations. rangement. But any such agreement would The Board wrote some time ago, either to you be a voluntary one between a holder of the or to the governor of your bank, that this is a acceptance and the acceptor and could not matter which it could not cover by a general affect a fourth party who might happen to ruling. It seems to be a matter for determinabecome the holder of the acceptance. tion by the Federal Reserve Bank after an analysis of the statements rendered. If it is clear NOVEMBER 5, 1917. that the notes can not be liquidated within a short time out of current assets accruing through ordinary earnings, and that the borrowing is really for capital account, the notes should Rediscount of Participation Certificate. not be regarded as eligible. But, on the other (To a Federal Reserve Bank.) hand, if the note is given in payment of mate- Your letter of October 24 raises the question rial or supplies which are necessary to enable whether a Federal Reserve Bank may redis- the public-service corporation to furnish goods count a certificate of participation in a note, (light, heat, or power) which it sells the public, such note itself being eligible for rediscount. and for which the public will pay at the end of Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

950 FEDERAL KESERVE BULLETIN. DfiCEMBSll 1, 1917. 30 or 60 day periods, the note might be re- "Are acceptances originating inside but paygarded as eligible, provided the statement of able outside subject to stamp taxes?'7 the corporation shows a satisfactory proportion I beg to advise that the matter was referred of cash and accounts receivable against current to the Board's counsel for a ruling, which he liabilities. The cardinal test for eligibility is has rendered as follows: undoubtedly the ability of the public-service " In my opinion questions should be answered corporation to p&y the obligation within 90 in the affirmative." days out of collections accruing from current In support of his decision, counsel cites secearnings. tions 800, 801, and 802 of the act approved October 3, 1917. NOVEMBER 17, 1917, NOVEMBER 13, 1917. Tax on Promissory Notes. Eligibility of Mutual Savings Bank. (To Federal Reserve Banks.) (To an individual.) In December, 1914, Hon. Wm. H. Osborne,- Replying to your letter of the 25th instant, who was then the Commissioner of Internal I would state that you are correct in your Revenue, advised the Board that the following understanding that a mutual savings bank rulings had been made by his bureau: i'The rediscount of a note by a bank does without capital stock or stockholders is not eligible, under the law, for membership in the not involve any tax liability. Federal Reserve system. "A promissory note payable on demand is not held to be renewed and subject to tax un- OCTOBEK 30, 1917. der the provisions of the internal revenue act of October 22, 1914, when accrued interest thereon is paid. | State Bank Membership. "A promissory note may have interest pay- I (To a State bank.) ments indorsed thereon without becoming i I have received }^our letter of the 25th subject to tax if the life of the note is not coninstant, in which you refer to the restrictions tingent upon payment of the interest and is which disqualify your bank from membership not extended to a certain future date. in the Federal Reserve system. From what "A promissory note given for a fixed period you say, however, I am not at all sure that which, when due, is allowed to run without your investments are of such a character as to suit, is not held to be renewed upon payment disqualify you, for the Federal Reserve Act of interest. This is looked upon as a forbearhas been amended so as to allow State banks ance and not as a renewal; the holder not reto become members and retain, at the same linquishing his right for any stated period, and, time, all of their charter and statutory privitherefore, no stamp is required in such cases.7' leges under their State laws. If you are au- The present commissioner, Hon. Daniel C. thorized under your law to invest in real estate Roper, advises the Board that these rulings are mortgages, the fact that you have large indeemed to be consistent with proper enforcevestments of this kind would not bar your ment of the existing law. This information is bank from membership in the Federal Reserve given you in order that it may be transmitted system. Of course, if you should wish to to your member banks in such manner as may rediscount with the Federal Reserve Bank be deemed expedient. you would be obliged to offer eligible paper, NOVEMBER 28, 1917. that is, commercial paper having not longer than 90 days to run, or agricultural paper or paper based on live stock maturing within six months. Stamp Tax on Acceptances. OCTOBER 30, 1917. (To a Federal Reserve agent.) With reference to your telegram of Novem- j ber 8, reading as follows: (To a Federal Reserve Agent.) "Are acceptances originating outside but I have received your letter of the 28th instant payable inside this country subject to stamp in reference to the inquiry of , as to taxes ? whether his institution can become a member Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

DECEMBER 1, 1917. FEDERAL BESEEVE BULLETIN. 951 of the Federal Reserve system as far as the re- Deposits With Nonmember Banks. serve feature goes, without becoming amenable (To an individual.) to all of the acts. I am inclosing for Mr. —- information a copy of the Federal Re- Receipt is acknowledged of your letter of serve Act, as amended, and would refer you to October 30, and in reply you are informed section 9 which sets forth fully the terms, con- that section 19 of the Federal Reserve Act ditions, regulations, restrictions, and limita- provides that— tions of State bank membership. I think you "No member bank shall keep on deposit will agree with me that the terms prescribed by with any State bank or trust company which the act are liberal enough, and that the Board is not a member bank a sum in excess of 10 can not, if it would, waive its right to make per cent of its own paid-up capital stock and examinations, although it may not choose to surplus." exercise it, nor can it waive any of the other This provision was clearly intended to apply provisions and penalties prescribed in the sec- to State banks and trust companies which betion. come members of the system as well as to If admitted as a member, the would national banks. If there could have been any not be disturbed in the enjoyment of the privi- doubt on this subject it is removed by that leges or the exercise of the powers given by its part of section 19 as amended, which procharter, excepting in so far as these would con- vides that: flict with the provisions of the Federal Reserve $%." Banks becoming members of the Federal Act. Reserve system under authority of this sec- OCTOBER 30, 1917. tion shall be subject to the provisions of this section and to those of this act which relate specifically to member banks." Method of Computing Discount. NOVEMBER 3, 1917. (To a member bank.) In reply to your letter of inquiry dated September 7 there is forwarded herewith a tabulated statement showing the methods used by each of the Federal Reserve Banks in comput- War Savings Certificates as Christmas Gifts. ing discount. (To a Federal Reserve Bank.) Aside from the fact that New York and Boston Federal Reserve Banks figure discount Referring further to your letter of October on a 365-day basis while all the other Federal 29, in which you inclose a letter from , Reserve Banks use 360 days, the methods used dated October 27, with reference to the use of by the Federal Reserve Banks do not vary. gold as Christmas holiday gifts, I beg to advise Discount is computed on the actual number of you that at a meeting of the Federal Reserve days the paper has to run, the date of payment Board, held November 18, the committee to of course varying in different States in accord- which this matter had been referred reported ance with the laws regarding holidays in force that— in the different jurisdictions. «* * * i yiew of the general opinion that T1 Differences in the number of days and the fold should be concentrated, the attention of amounts of discount shown in the above table ankers, employers of labor, and of individresult from the fact that a number of banks uals should be directed to the new war savings failed to take into consideration the fact that certificate plan as being an entirely suitable March 3 was a Saturday, when notes are not and patriotic method of handling the matter. payable in some States, that July 1, 1917, fell These war savings stamps will be on sale by on Sunday, also from the use of the 365-day December 1, descriptive literature is now on basis by the New York and Boston banks the press, and the Treasury circular will be Instead of the 360-day basis, used by the other issued within a few days/7 banks. This report was approved by the Board. OCTOBER 29, 1917. NOVEMBER 19, 1917. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

952 FEDERAL RESERVE BULLETIN". DECEMBER 1,1917. LAW DEPARTMENT. The following opinions of counsel have been "An agency requires no division of the capital authorized for publication by the Board since stock, and the details of the business are few and* are easily supervised by the officers of the the last edition of the Bulletin: bank, while a branch requires, in effect, a divi- Real Estate Loans by Foreign Branches. sion of the capital, the working force is organized, and the business conducted as if it were A branch bank of a national bank established in a foreign a separate organization, and it competes in all country, under authority of section 25, may make loans branches of the banking business with other on real estate located within 100 miles of the branch, probanks in that locality the same as if it were an vided such loans conform in all other respects to the proindependent institution." (Citing certain auvisions of section 24. thorities in suppport of this proposition.) NOVEMBER, 17, 1917. SIR: This office has been requested to give This would seem to be particularly true of a consideration to the question of the right of a branch operating in a foreign country. Such a branch bank of a national bank established branch must necessarily exercise the functions in a foreign country, under authority of section possessed by the parent bank in competition 25 of the Federal Reserve Act, to make loans on with other local banking institutions and if it real estate. is to meet such competition should not be Section 25 authorizes national banking asso- restricted in its operations to any greater ciations possessing a capital and surplus of extent than the parent bank. $1,000,000 or more, under regulations pre- Section 24 of the Federal Reserve act proscribed by the Federal Reserve Board— vides that— to establish branches in foreign countries or Any national banking association not situdependencies or insular possessions of the ated in a central reserve city may make loans United States for the furtherance of the for- secured by improved and unencumbered farm eign commerce of the United States, and to land situated within its Federal Reserve district act if required to do so as fiscal agents of the or within a radius of 100 miles of the place in United States.' which such bank is located, irrespective of district lines, and may also make loans secured The act does not undertake to prescribe the by improved and unencumbered real estate functions of branches. It is to be assumed located within 100 miles of the place in which that national banks are to exercise through such bank is located, irrespective of district their branches the same corporate powers that lines; but no loan made upon the securare exercised by the parent bank, subject, of ity of such farm land shall be made for a longer time than five years, and no loan made course, to such regulations of the banking busiupon the security of such real estate as disness as may be contained in the laws of the tinguished from farm land shall be made for a foreign country in which the branch is located. longer time than one year nor shall the amount While the branch has no separate corporate of any such loan, whether upon such farm entity and obligations assumed by it become land or upon such real estate, exceed 50 per cent of the actual value of the property obligations of the parent bank, it is to all offered as security. Any such bank may intents and purposes a separate organization make such loans, whether secured by such in the exercise of its functions. It is in this farm land or such real estate, in an aggregate respect that it differs from an agency. sum equal to 25 per cent of its capital and The Attorney General, in an opinion pub- surplus or to one-third of its time deposits and such banks may continue hereafter as lished in the " Opinions of the Attorney Genheretofore to receive time deposits and to eral 29, 81," discusses at some length the differpay interest on the same. ence between an agency and a branch bank. The Federal Reserve Board shall have power In the course of his opinion he says: from time to time to add to the list of cities in Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

DECEMBER 1,1917. FEDERAL BESEBVE BULLETIN. 958 which national banks shall not be permitted to porate powers not possessed by the parent make loans secured upon real estate in the bank and must confine its loans on real estate manner described in this section. to those specifically authorized by section 24, It is manifest that a branch of a national it is the opinion of this office that such branches bank located in a foreign country can not be may exercise any of the functions or corporate situated within an}? Federal Reserve district, powers possessed by the parent bank subject all of which districts are included within the only to the restrictions that are contained in geographical limits of the United States. Land the National Bank Act and the Federal Reaccepted as security for a loan could not, there- serve Act, and subject, of course, to the laws fore, be located in the same Federal Reserve of the country in which the branch is located district as the branch bank. It could, however, which regulate the banking business. be located within 100 miles of the branch bank, In this view, section 24 should be construed and the question arises whether a branch may as authorizing the branch bank to make loans make loans on real estate located within 100 on real estate located within 100 miles of the miles of its place of business if such loans com- 510.11011, provided such loans conform in all ply in other respects with the provisions of other respects to the provisions of section 24. section 24. Respectfully, The question arises in connection with a M. C. ELLIOTT, Counsel. branch established on the Isthmus of Panama To Hon. W. P. G. HAHDING, by a national bank located in Washington, Governor Federal Reserve Board. which is not a central reserve city. The manager of the branch bank makes the following statement of local conditions: for Membership by Sfcit& There are a great many people here of perfectly sound financial standing, but there are A State bank may make application for membership In very few stocks, bonds, or other negotiable the Federal 'Reserve system as soon as it lias been granted securities held by the moneyed classes. a charter and is authorized to commence business. • The ordinary procedure of a successful merchant here is to put the bulk of his earnings NOVEMBER 10, 1917. into improved real estate. These urban, prop- | SIB: The accompanying letter raises the erties have so high a rate of yield that ordinary j question whether a State bank or trust combonds, etc., can not compete with them as pany may apply for membership in. the Federal attractive investments. Therefore in. many Reserve system after organization but "before cases when we make a loan if we wish, actually | the applying bank has actually commenced to hold more than the names of the parties who sign the document we are forced to take j business. a mortgage on some of their property. Section 9 of the Federal Reserve Act provides It thus appears that unless this branch is that— permitted to accept the security of real estate Any bank incorporated by special law of any on loans made, it will be forced to make only State or organized under the general laws of any State of the United States, desiring to unsecured loans if it is to continue business in become a member of the Federal Reserve systhe country in question. tem, may make application to the Federal It is hardly probable that Congress intended Reserve Board, uncler such rules and regulato require branches of national banks to tions as it may prescribe, for the right to subscribe to the stock of the Federal Reserve Bank engage in the banking business in competition I organized within the district in which the with local foreign banks under restrictions I applying bank is located. Such application which would prohibit such branches from | shall be for the same amount of stock that the obtaining the benefit of local securities, and applying bank would be required to subscribe to as a national bank. The Federal Reserve while the branch could not exercise any cor- 26416—17 6 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

954 FEDERAL RESERVE BULLETIN. DECEMBER 1,1917, Board, subject to such conditions as it may | not eligible for rediscount by a Federal Reserve Bank, prescribe, may permit the applying bank to since the proceeds were not used for an agricultural, inbecome a stockholder of such Federal Reserve dustrial, or commercial purpose, or for the purchase of Bank. notes or bonds of the United States. Under this language a bank would clearly NOVEMBER 1, 1917. be entitled to make an application as soon as SIB: The attached letter presents for considit has been granted a charter and is authorized eration the following case: to commence business. This section further Bank "A" finds it necessary, on account of provides that— heavy withdrawals made to pay for Liberty In acting upon such application the Federal bonds, to borrow on its note. It executes a Reserve Board shall consider the financial con- promissory note secured by stocks and bonds dition of the applying bank, the general charother than bonds of the United States and disacter of its management, and whether or not counts this note with Bank "B." Bank "B" the corporate powers exercised are consistent with the purposes of this act. subsequently offers the note of Bank "A" to the Federal .Reserve Bank for rediscount. This might seem to indicate that Congress You have asked whether in the opinion of this intended to permit only those banks to apply office this note can be considered as eligible on for membership which are actively engaged in the ground that the proceeds of the original exercising their corporate powers. The purdiscount were used to replace deposits withpose of this provision, however, was manidrawn from Bank "A" by customers purchasfestly to enable the Board to determine whether ing Liberty bonds. the functions of the applying bank are banking functions or whether it is engaged in a business Under section 13 of the Federal. Reserve Act which is inconsistent with the provisions of the the eligibility of a note for rediscount is deter- Federal Reserve Act. It presupposes that the mined by the use of the funds derived from the applying bank possesses corporate powers, the original negotiation of the note. The collateral exercise of which would not be consistent with security of the note may indicate its use, but the the purposes of the act. If, therefore, the form of collateral is otherwise immaterial. In charter of the applying bank does not contain other words, a note might be secured by railcorporate powers which should not be exer- road stocks and bonds, but the proceeds might cised as a member bank, there would seem to be used for an agricultural, industrial, or a be no reason why the Board should not author- commercial purpose, in which event the note ize its membership. In any event, there would would be eligible for rediscount, although it seem to be no reason why a bank incorporated would not be if the proceeds were used to purunder a State law should not file its applica- chase or carry the railroad stocks and bonds. tion with the Federal Reserve Board for such Applying this test to the case under considaction as it may deem necessary. eration, it seems clear that the proceeds of the Respectfully, note executed by Bank "A" and discounted by Bank "B" were not used for an agricultural, M. C. ELLIOTT, Counsel. industrial, or commercial purpose. They be- To Hon. W. P. G. HARDING, came a part of the general assets of the bank, Governor Federal Reserve Board. having been borrowed to replace deposits withdrawn, and presumably were to be used to pay depositors or to make loans to customers. If Rediscount of Bank's Note given for Fluids to Replace it could be shown or assumed that these funds Deposits Withdrawn to Purchase Liberty Bonds. were used by the bank to purchase or carry A note executed by Bank "A" and discounted by Bank United States bonds, the note in question would "B," the proceeds of which wore used to replace funds be eligible for rediscount; but since there is no withdrawn by customers to purchase liberty bonds, is Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

DECEMBER 1,1917. FEDERAL RESERVE BULLETIN. 955 justification for such an assumption the note Stat. 34) are so far repealed by section 26 of does not, in the opinion of this office, come the Federal Reserve Act (Act Dec. 23, 1913, within the classification of eligible paper. 38 Stat. 251), that the shareholders in the Respectfully, plaintiff bank are exempt from taxation by M. C. ELLIOTT, Counsel. virtue of section 7 of the last-named act on so To Hon. W. P. G. HABDING, | much of its capital and surplus as is invested Governor, Federal Reserve Board. in stock of the Federal Reserve Bank. A temporary injunction issued when the bill was filed. Deduction of Federal Reserve Bank Stock irons Tax Under section 5219, the States are empowered Assessments Levied on Shareholders of National to tax the shares of stock of national banks by Banks. including them in the valuation of the personal The following opinion rendered recently by property of the owners in the assessment; of Judge Sater of the United States District taxes. The only restriction on this power of Court, Southern District of Ohio, Western taxation is that taxation thereon shall not be Division, holds that Federal Reserve Bank any greater than is assessed on other monied stock which is held by a national bank can capital in the hands of individual citizens of not be deducted by such national bank in the State imposing the tax, and that the shares making a. return of the value of its own stock of any national bank owned by nonresidents for the purposes of taxation. of any State shall be taxed in the city or town where the bank is located and not elsewhere. [United States District Court, Southern District of Ohio, Western Real property of national banks is by the Division. First National Bank of Cincinnati, Ohio, Plaintiff, v. Peter W. Durr, auditor of Hamilton County, Ohio, ot al., Defendants. No. same section made subject to local taxation to 86. On motion to dismiss.] the same extent as other real property. Sater, District Judge: The motion to dis- The Legislature of Ohio, in pursuance of the miss the bill operates as a demurrer. It- authority conferred by section 5219, has admits that, after the plaintiffs cashier had declared that all the shares of stockholders in made the return for taxation purposes of an incorporated State or national bank shall plaintiff's resources and liabilities, with a be listed at their true value in money and shall statement of the names and residences of its be taxed only in the city, ward or village stockholders, the number of shares held by within which the bank is located. Section each and the par value of each share, the 5408, Ohio G. C. A national bank is required defendant auditor delivered to his codefehdant to keep at its place of business a full and correct as county treasurer the tax duplicate authoriz- list of the names and residences of its stocking him to collect, as in the Ohio statutes holders and the number of shares held by each, provided, the taxes charged against the owners which list shall at all times during business of the shares of stock in the plaintiff bank, hours be open to the inspection of local taxing which taxes so charged include the sum of officers. Section 5410. The cashier of such $3,339.36, assessed on acount of the State, bank is required to make a return to the county county and municipal taxes claimed to be due auditor of the bank's resources and liabilities, on account of the plaintiff's ownership of with a full statement of the names and resi- $4,320 shares of stock held and owned by it in dences of its stockholders, the number of the Federal Reserve Bank of the district shares held by each and the par value of each within which Cincinnati is located. The share. Section 5411. The auditor then deterplaintiff claims that the provisions of section mines the value of the shares of such bank. 5219. R. S. U. S. (Act June 3, 1864. see. 41, Section 5412. The taxes assessed on the 13 Stat. Ill, as amended Feb. 10, 1868, 15 shares or their par value are made a lien thereon Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

958 FEDERAL BESEEVB BULLETIN. DECEMBER 1,1917. from the first Monday of May in each year stockholders. Each of these is, under some until they are paid. The duty is imposed on circumstances, an appropriate subject of taxation.77 the bank to collect the taxes due upon its shares of stock from the several owners of the By the unambiguous provisions of Section shares and to pay the same to the county 5219, the power of the States to tax national treasurer. Failure to do so is attended with a banks is confined to a taxation of the fourth penalty. Section 5672. The bank, having of the above elements—i. e., the shares of stock paid the tax assessed upon the shares held by in the names of the shareholders, and to an its stockholders, is authorized to deduct the assessment of the real estate of the bank. amount so paid from the dividends that are Owensboro National Bank v. Owensboro, 173 due or that may become due on such shares, U. S. 664, 669; People v. Weaver, 100 U. S. and is given a lien upon the same and on all 539, 549; State, Northward National Bank v. funds in its possession belonging to its share- City of Newark, 39 N. J. L. 380, 383; Flint v. holders or which may at any time come into Board of Aldermen, 99 Mass. 141, 145; First its possession, for its reimbursement for the National Bank of Richmond v. City of Richtaxes so paid on "account of its several share- mond, 39 Fed. Rep. 309. holders, with legal interest, which lien may be When the plaintiff subscribed to the capital enforced in an appropriate manner. stock of the Federal Reserve Bank, it perma- Section 2 of the Federal Reserve Act required nently invested a portion of its capital and, it every national bank to signify in writing within would seem, of its surplus also. Capital is 60 days after the passage of the act its accept- thus defined in Bailey v. Clark, 88 U. S. 284, ance of its terms and provisions. Any bank 286: failing for one year to become a member of "When used with respect to the property of the Federal Reserve Bank forfeited all of its a corporation or association, the term has a rights, privileges and franchises. The amount settled meaning; it applies only to the property or means contributed by the stockholders as of each national bank's subscription to the the fund or basis for the business or enterprise capital stock of the Federal Reserve Bank in for which the corporation or association was the district in which such national bank is formed.77 situated must be 6 per cent, of its paid up capital Capital or capital stock (the terms being stock and surplus. For the subscription thus often used synonymously) is not the same made, the national bank becomes a shareholder thing as the shares of capital stock. In or stockholder in the Federal Reserve Bank, Farrington v. Tennessee, 95 U. S. 679, 687 but may not transferor hypothecate its shares, (quoted with approval in Powers v. Detroit & each of which is of the face value of $ 100. (Sec. Grand Haven Ry., 201 U. S. 543, 560), it is 3.) Section 7 provides that— said: "'Federal Reserve Banks, including the capi- "The capital stock and the shares of the tal stock and surplus therein, and the income capital stock are distinct things. The capital derived therefrom, shall be exempt from stock is the money paid or authorized or re- Federal, State and local taxation, except taxes upon real estate.77 quired to be paid in as the basis of the business of the bank and the means of conducting its In Tennessee v. Whitworth, 117 U. S. 129, operations. * * * The capital stock and 136, Mr. Chief Justice Waite, in speaking of the shares may both be taxed, and it is not taxable corporate elements, said: double taxation. The bank may be required to pay the tax out of its corporate funds, or be "In corporations four elements of taxable authorized to deduct the amount paid for each value are sometimes found: 1, franchises; stockholder out of his dividends.'7 2, capital stock in the hands of the corporation; 3, corporate property; and, 4, the shares of the The Federal Reserve Act recognizes and capital stock in the hands of the individual maintains the distinction between capital stock Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

DECEMBER 1,1917. FEDERAL RESERVE BULLETIN. 957 and the shares of capital stock. See Sees. 5 to Crocker-Woolworth National Bank, 92 Fed. 8, both inclusive. It will be further noted that Rep. 273. The courts have repeatedly ruled the term "capital stock/' when used in refer- that in fixing the value of the shares of stock ring to a national hank, has the same meaning of national banks for taxing purposes, the value as when applied to a Federal Reserve Bank, due to the bank's ownership of nontaxable The exemption from. Federal, State and local United States bonds as a part of its assets must taxation, given by section 7 of such act, by be included. See, for instance, Cleveland Trust express language extends only to the banks Co. v. Landers, 184, XL S, 111: Hager v. organized under that act,' 'including the capital American National Bank, 159 Fed. Rep. 896, stock (capital) and surplus therein, and the 401. C. C. A.,'6; Van Allen v. Assessors, 3 Wall. income derived therefrom/' The correct in- 573; People"?;. Commissioners, 4 Wall at p. 258 ; terpretation of such an exempting clause is National Bank v. Commonwealth, 9 Wall, at gathered from Railroad Companies v. Gaines, p* 559; Home Savings Bank v. Des Moines, 205 97 U. S. 697, 707, in which it was said: U. S. at p. 518, 519. The same rule applies to "In general, a,n exemption of capital stock, nontaxable stock held by the plaintiff in the 'without more, may, with great propriety, be Federal Reserve Bank. considered, under ordinary circumstances, as The declaration in section 26 of the Federal exempting that which, in the legitimate opera- | Reserve A.ct that all provisions of law incontion of the corporation, conies fco represent the capital." | sistent with or superseded by any of the provisions of such act are to that extent repealed, The exemption provided in section 7 does not has no application to such a situation as is extend to national banks organized under the presented by the bill, for the reason that the national banking law. Had Congress intended exempting clause found in section 7 does not that their capital stock should be relieved from relieve or purport to relieve national banks, taxation, it would have said so. their capital and surplus from the taxation The stock purchased by the plaintiff in the authorized by Section 5219, and is therefore not Federal Reserve Bank is but a nontaxable ininconsistent with and does not supersede the vestment of a part of its capital and surplus. provisions, or any of them, of such last named As said in First National Bank v. Albright, 208 section. IT. S. 548,553: The temporary injunction is dissolved and "The law does not consider the nature of a the motion to dismiss the bill is sustained. The bank's investments not taxed in fixing the value of its stock. Palmer v. McMahon, 133 same ruling may be taken in cases Nos. 87, 88 U. S. 660." and 89, if the issues involved in those respective Whatever value the shares issued by the cases are the same as in this, which I underplaintiff national bank possess, they are to stand to be the fact. that extent taxable in the hands of their Other questions have been raised by the owners and holders. Rosenblatt v. Johnson, defense, but their consideration is not deemed 104 IT. S. 462; City, etc., of San Francisco v. necessary. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

958 FEDEBAL EESERVE BULLETIN. DEC EM BEE 1,1917. SUMMARY OP BUSINESS CONDITIONS NOVEMBER 23,1917. District No. l-~ District No. 2— District No. 3™ District No. 4 District No. 5— District No. 6™ Boston. New York. Philadelphia. Cleveland. Richmond. Atianta. General business Trend toward Gov- j Very active Good Not entirely satis- Satisfactory; good Good. factory. volume. Crops: ernment work. | Condition Yield reported good Fair Prices high and re- Winter grains fab. turns satisfactory. Outlook do Improved in t d r u ic s t t . ries of the dis- Busy | Very busy. Very busy. En a w g s a a p r g r e p a d u c t r i p a c o s a s b e f l s u e . l f l o y r Ru re n m nin u g n e f r u a ll t iv o e n I j Operating fall, Construction, build- Mostly on Govern- j Very quiet, Very dull. Decided falling off. Private building \ Very little. ing, and engineer- ment work. ! limited; Govern-1 ing. ment work in ! large volume, i Foreign trade Imports increased; j Volume slightly de- Large., Limited by re- ! Light exports decreased.! creased; value | strictions and J substantially ;• » scarcity of freight room. Bank clearings Increased I Decrease Increase Increase Increase Increase- Little change from ! Steady Firm at. about Plentiful at 5 to 6 ! Stiffening. Money rates last month. j No change. per cent. per cent. ; Railroad, post office, Spotty I Heavy Increase Increased ; Increase. and other receipts. Labor conditions Unsatisfactory | Labor supply Ic Scarce and wages j Slightly better— Scarce and wages . Fair, ! than demand. high. Outlook.. i Fairly good Good j Not unfavorable.,. Generallysatisfac- ', Good, tory. Remarks. All energy devoted j 'Fuel and transpor- Fuel, transporta- General adoption Bank deposits t;o needs of the j tation serf on s tion, and labor of "necessities high; collections Government. ; problems. unsatisfactory. only" policy, good; money beand adjustments ing spent too to fulfill Govern- freely. ment require* ments. District No. 7- District No. S~ District No. 9— District No. 10— District No. 11- District No. 12— Chicago. St. Louis. Minneapolis. Kansas City. Dallas. San Francisco. General business Active | Active Good Excellent Large volume. Crops: j i Condition Good ! ! Large yield; much Fair.. soft corn. Outlook ..do.. Wheat good ..do.. Industries of the dis- Generally active.... Generally active... Active Excellent Very active Active. trict. Construction, build- Very quiet. Very quiet. Fair Little building... Ordinary building 38 per cent less than ing and engineer- below normal; a year ago. ing. total operations good, account Governme n t' s activities. Foreign trade.. Good.. Large; increase overOctober,1916. Bank clearings Increase Increase Decrease.. Increase Increase Increase. Very firm. Firm; demand Firmer. Money rates Firm Firm Slight advance. good; ample funds. Railroad, post office, Post office increase. Inerease Increase Good Increase , Very large. and other receipts. Labor conditions Scarcity of labor Men scarce; high Good Fully employed; Unusual demand Unsettled but less wages. but 1 i 111 * for skilled men, trouble. and actual shortage. Outlook Good Good Favorable. Good Situation gener- For larger trade ally satisfactory. and active industry. Remarks j Cotton moving Large amount of General car short- Scattered rains Extraordinary re- ! slowly. fall plowing ac- age; all impor- have helped sit- turns for agriculcomplished. tant labor uation; drouth tural products troubles ad- serious in por- and extraordijusted; Govern- tions of district; nary wages to an ment regulation business at unusual number working well. larger cities of employees good, at canton- have resulted in ment points at active trade. record figures. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

DBCEMBHB 1,1917. FBDEBAL RESERVE BULLETIN. 959 GENERAL BUSINESS CONDITIONS. There is given on the preceding page a sum- economy and higher prices. In men's shoes mary of business conditions in the United the lessening demand is attributed to the draft States by Federal Reserve districts. These re- of young men into the Army. Manufacturers, ports are furnished by the Federal Reserve in making comparisons of their business, find Agents, who are the chairmen of the boards of that they are selling fewer pairs of shoes than directors for the Federal Reserve Banks of the last year, but that their business in money several districts. Below are the detailed re- values is larger, because prices are on an averports as of approximately November 23: age 30 per cent higher than a year ago. The leather market continues firm, and many of the DISTRICT!1 NO. I—BOSTON. large manufacturers are following a hand-to- Business in general follows the same trend as mouth policy in purchasing their requirements. during the last month or two, Government The wool market continues firm, with, a tenbusiness becoming an ever-increasing factor, dency upward.. The English. Government has and domestic business, except in necessities released 45,000 bales of Australian fine wool, and lines pertaining to war, is gradually becom- and this is reported to have all been shipped. ing less. This has been emphasized during/the In fact, one small shipment has already been past month by statements emanating from received. This will be put on sale at auction Washington that all our energies must be de- in Boston to be used for civilian purposes. voted to the carrying on of the war and all other Wool and worsted mills continue to operate at interests must be secondary. capacity. The November 1 statement of the The large oversubscription to the second Lib- National Association of Wool Manufacturers erty Loan in this district is due to the patriotic shows a very small percentage of idle machinefforts of banks and business men who gave un- ery. grudgingly of both their time and money for sub- The cotton mills continue busy, although m scriptions and to further the success of the issue. fine and fancy goods new orders are not keeping Although the banks in this district have had up with production. Buyers are still conheavy demands throughout the year from their servative and are not speculating on the future. commercial customers; still the financing of For the most part they are unwilling to pay the Liberty -Loan subscriptions dining the last higher prices necessitated by increased promonth has been accomplished without any un- duction costs. due disturbance to the money market. Print cloths and coarse goods are in better The securities market has heen unsettled, demand, and in the former prices are advancand this disturbance has extended to even the ing without any decrease in the demand. highest grade of railroad bonds, which in some Imports through the port of Boston, for the cases have shown radical declines, carrying month of September show some interesting figthem to a lower point than for many years. ures, especially those from. Mexico, Cuba, The labor situation has been a most disturb- Egypt, and South Africa, which are largely in ing factor not only in domestic business but excess of previous years. Exports during that also in plants engaged on Government work. month to the United Kingdom and Italy In the latter, strikes have been in progress showed a marked decrease. The increase in during the month. imports was largely in cotton, fibers, sugar, The boot and shoe industry is spotty, and and wool. manufacturers are using a good part of their Money is firm, but not more so than it has facilities on Government orders. Retail shoe been for some time. Cotton brokers are conbusiness is somewhat duller, due to general siderable borrowers, as are wool men. Choice Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

960 FEDEBAL RESERVE BULLETIN. DECEMBER 1,1917. mill paper is selling at 5J per cent for six disruption of business or diminution of general months. Money on call ranges from 4J to 5 activity and prosperity. per cent. Time mone}^ is not overabundant, Unsatisfactory transportation conditions with rates normally 5-J to 6 per cent. continue, and indicate that more rapid adjust- The exchanges of the Boston Clearing House ment must be made if the strain upon the railfor the week ending November 17, 1917, were roads is to be lessened and serious congestion $374,002,763, compared with $277,309,318 for avoided, for despite the vigorous efforts which the corresponding week last year and $240,- the carriers are making, industries essential to 038,634 for the week ending November 10, war preparations are seriously hampered, 1917. especially the coal-mining industry and through Building and engineering operations in New it practically all manufacturing. England from January 1 to November 14, 1917, With the exception of numerous complaints amounted to S183,694,00Q as compared with concerning transportation and labor conditions, ; $183,883,000 for the corresponding period of the general comment from our correspondents 1916, the highest previous year recorded. indicates active and prosperous business. Agri- The receipts of the Boston post office for cultural implements are selling well at prices October, 1917, show an increase of $40,575.58, substantially higher than normal. Activity in or about 5 per cent more than September, 1916. machinery manufacture continues unabated, For the first 15 days of October, 1917, receipts supported largely by Government orders. were about 38 per cent, or $144,338.85 more Demand for railway, mill, and mining supplies than for the corresponding period of last year. is lessening slightly. Building trade materials The Boston & Maine Railroad reports net are purchased only for limited immediate operating income, after taxes, for September, requirements. The absolute necessity, how- 1917, as $1,233,734, compared with $1,386,173 ever, of increased housing facilities in factory for the corresponding month of 1916. The and shipbuilding centers has led to special New York, New Haven & Hartford Railroad efforts toward construction of this character. reports operating income, after taxes, for Sep- The volume of business in rubber products tember, 1917, as $2,287,100, compared with continues heavy, although there is hesitancy $2,187,4.35 for the same month last year. among private buyers. Loans and discounts of the Boston Clearing Sustained activity is the report from the House banks on November 17, 1917, amounted textile and clothing industries. Men's and to $501,874,000, as compared with $456,701,000 women's clothing is selling freely in spite of last month and $455,402,000 on November 18, sharp advances in prices. The hosiery and 1916. Demand deposits on November 17, underwear trades are fairly busy, with Govern- 1917, amounted to $448,815,000, as compared ment orders an important factor. Manufacturwith $394,376,000 on October 20, 1917, and ers of cotton textiles are hampered by difficulty $369,095,000 on November 18, 1916. Time in obtaining raw cotton promptly, and pardeposits on November 17, 1917, totaled ticularly by the problem of labor supply. $25,560,000, as compared with $29,813,000 on Buying demand is excellent, with a tendency October 20,1917, and $28,951,000 on November not to question prices, buyers trading for 18, 1916. The amount "due to banks77 on months ahead. Silks are selling readily and November 17, 1917, was $153,431,000, as com- with no sign of diminishing demand, orders pared with $144,914,000 on October 20, 1917. being placed ahead both for actual wants and in anticipation of future needs. This fact, DISTRICT NO. 2—NEW YORK. taken with the report of active business in furs Current reports from banks and business and other clothing, appears to indicate that the interests of the district indicate substantial public is not stinting itself in the matter of progress in war organization without serious clothing. Further evidence of the absence of Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

DECEMBER 1,1917. FEDERAL BESEBVE BULLETIN. 961 rigid economy is furnished by the heavy the past six weeks there has been a serious volume of sales of jewelry and watches. shortage of raw and refined sugars in this As a result of high prices and of overstocking market, and although temporary relief has last year, the volume of business in men's | been found in the distribution of supplies hereshoes is not quite up to the usual standard. j tofore purchased for export to neutral nations A tendency on the part of retailers to order in and now used to supply the home market, it smaller quantities and more frequently is is expected that the available supply of sugar noticed. will be very small until raw sugar from Porto Interior decorating and house furnishing Rico and Cuba is received in large quantities. companies are experiencing a recession of An international sugar committee is arranging business, with buyers cautious and conserva- for all purchases of foreign sugars that are to tive, and as prices have advanced to the be used both in this country and England, maximum, which it is thought the public will France, and other allied countries. pay, further advances in the cost of raw The closing of the second Liberty Loan materials will mean curtailment of business. showed subscriptions for this district of The paper manufacturers are having a good $1,550,453,450, while the amount allotted was volume of business, though with narrowing $1,163,475,200, of which $949,239,980 has profit, because of increased cost of labor, fuel, already been paid in. Of these payments, and wood. Pulp wood now costs twice as much which included $59,051,300 realized from cash as three years ago, while the cost of labor in sales of bonds, $687,741,746 were made in book this industry is reported to have increased 50 credit, $153,972,000 in Treasury certificates, per cent. There is considerable unsettlement and $107,526,234 in cash. The bulk of the in the drug and chemical lines, with demand cash thus paid in was at once redeposited in better than supply. banks which had qualified as depositaries, and Conditions in the metals trades are very un- the entire transaction was handled without any even. Practically all of the copper produced disturbance in the money market, which in this country is now being taken by the throughout the loan campaign has been very Government and the supply has been much steady. Rates on call money have ruled close below the demand. Production of lead, on the to 4 per cent throughout the month, with other hand, has outrun consumption. Exports advances to 5 per cent on November 19, 20, for last year were 225,000 tons of pig lead and and 21, while the rate on commercial paper has lead manufactured articles, or approximately held steadily at 5-| to 6 per cent. The re- 35 per cent of the entire production. The sources of the Federal Reserve Bank have exports this year have been trifling in amount, assisted greatly in the financing process. Its and have been practically offset by imports loans and investments on November 19 reached from Mexico. $456,000,000, their highest point. The oil industry reports an upward trend in prices of lubricating and fuel oils, but no DISTRICT NO. 3—PHILADELPHIA. recent change in the price of gasoline or burning Manufacturing industries throughout the oils. Burning oil is reported to be a drug in district are running at high pressure, restrained the market, and fuel oils are bringing prices somewhat, of course, by the great difficulties as high as those obtained for the refined encountered in securing supplies and sufficient product. labor. The great demand for cotton and Conditions in relation to foodstuffs con- leather, in particular, has made it very diffitinue little changed, buying being careful and cult for manufacturers to get a quantity for immediate needs only, with prices steady sufficient to meet their needs. In the silk at levels considered high by the trade. For industry complaint is heard of some dullness Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

962 FEDERAL RESERVE .BULLETIN. DECEMBER 1,1917. due to the economies now practiced on account DISTRICT NO. 4—CLEVELAND, of the war. The Government activities, thrift cam- The shipbuilding industry along the Delapaigns, the Red Cross, and Y. M. C. A. camware River continues to increase and orders paigns throughout this district have all further for a very large tonnage are on hand. A impelled business in this district to make the number of extensive yards are under connecessary readjustments to a war basis. There struction to take care of the increasing demand is a decided tendency on. the part of all business for shipping. to serve the country and toward the policy of Eetail trade continues to be about stationary, "necessities only/7 with minor fluctuations above and below the Business is not entirely satisfactory. There general level of business. Increased wages is a spotty inclination in some localities, and and the tendency to economize have been transportation and labor difficulties have some conflicting factors with which business has detrimental effect in certain lines, but throughhad to contend. out there is no material change for the worse. The farmers have been quite successful this Agriculture.—Harvest yields in corn and year, though they were very much handicapped foodstuffs were not up to estimates, but were by the lack of farm labor. Crops appear to good, except that a large part of corn was not be of good size and in excellent condition. thoroughly matured and necessitated feeding Tobacco growers have been selling a good of stock or conversion into some form of manuportion of their crop at exceptionally high factured product. Seasonable weather during prices, the greater part of the month has aided fall Building operations continue to be curplanting materially. tailed owing to insufficiency of labor and In northern Ohio the increased acreage of materials. There is a pressing demand for wheat planted is estimated at from 25 to 50 per houses in most industrial sections, but there cent over last year. is no immediate prospect of its being satisfied. In the burley tobacco regions the lessened The coal situation shows no improvement crop in pounds is more than offset by higher during the past month, and in fact, the shortage prices, and the tendency is to dispose of the is becoming a greater reality to the majority crop promptly. Indications are that tobacco of the people. The householders have felt manufacturers are making financial preparathe inadequacy of the supply most of all, and tions for the handling of the crop, and the in Philadelphia it has been found necessary prospects show that the growers will.have an to initiate a card system in order to equalize unusually large money return on this year's the distribution of an inadequate supply. crop. Opinion throughout the district seems to Manufacturing.—Evidences of shortage of bo strongly in favor of granting the increases | iron ore begin to become general, and nearly in freight rates that the railroads are request- j all the steel mills are declining business other ing. It is recognized that improved transporthan for Government requirements. Inadetation facilities must be had in order that business may be satisfactorily conducted. quate fuel supply has curtailed operations in some of the furnaces, though on the whole the The floating of the Liberty Loan in this steel industry is engaged in Government condistrict was very successfully conducted. Paytracts as fully as possible. ments thereon have been made without any noticeable disturbance of the money market. The pottery and glass business is very active, Loans have expanded, rates for money have and the general conditions are reported as become firmer and are quoted from 53^ to 6 healthful. The manufacture and sale of face per cent. brick have shown a marked decrease. The Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

DECEMBER 1,1917. FEDERAL RESERVE BULLETIN. 963 reports do not indicate any material changes unprecedented quiet tone, with no demand in other manufacturing lines from last month, for any class of securities, even at greatly except such as are required by labor and fuel reduced prices. Most investors seem fully conditions. imbued with the idea of loaning to the Govern- Mercantile lines.—The volume of the jobbing ment, trade seems to be normal, with increased Clearing figures in the nine principal cities values. Some of the centers report increase show increases over the corresponding period in quantity of goods and a large increase in | of last year. money value sold to country stores. Retail ! The seriousness of our country's participatrade shows a slight recession, but it is about j tion in the war is being felt generally by busiup to the average for the season. ness in this district, and the outlook is for the Collections.—Collections are better than pre- tacit acceptance of the situation as it develops viously, and the percentage of slow paper is from time to time and determination to make perhaps lower than average, though some the best possible of it. industries report arrearages incident to delayed deliveries. Postoffi.ee receipts show sub- DISTRICT NO. 5—RICH1VIOND, stantial increases over the corresponding month Reports in the district continue to accentuate of last year. the disturbed conditions regarding labor, lack Building operations.—There is a decided of transportation facilities, and abnormal confalling off in all the larger cities except one ditions in many directions. Aside from these in the number of permits and valuations for notes of uncertainty, the unprecedented high new buildings. The demand for residence prices for cotton, tobacco, and other products properties in the centers is still far greater than have kept business generally up to high-water the supply, but the high cost of materials, mark. There has been an increased production inadequacy of labor, and the approach of of wheat in the southern portion of the district,, winter are deterrent to increased activities. and general agricultural production has been Transportation.—The general situation is very satisfactory. not greatly improved, and in some parts of the Trade is in good volume, retailers reporting district is worse than heretofore, The rail- particular improvement, some an increase of as roads are evidently bending all energy to much as 20 to 25 per cent, the increase being relieve congestion, but seem unable to handle principally due, however, to the very high the situation satisfactorily. prices. Wholesalers in shoes, dry goods, no- Labor.—The dearth of skilled mechanics tions, and other lines are active, but factory continues, and common laborers are very deliveries are reported slow in all lines, due parscarce. Women are being freely employed ticularly to shortage in labor and freight faciliby manufacturers, transportation companies, ties. Collections are universally reported good. and other employers of labor where it is possible Packers are doing somewhat less owing to high to use them in place of men. There have been prices and difficulty in procuring supplies. numerous wage advances in industries, and Flour mills are running to full capacity on a all labor is fully employed. The uneasiness profitable basis. of a month ago is not so pronounced. Building is almost at a standstill, except Money and investments.—The banks, despite Government work, but most of the cantonthe Liberty Loan payment, are able to meet ments in the district are about complete. This legitimate demands, and money, though firm, will free quite a volume of labor for employis not denied to general trade. Rates through- ment in other lines. Shipbuilding is active and out this district are steady at about 6 per cent. orders for military supplies continue in large The investment markets are experiencing an volume. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

964 FEDERAL EESEEVE BULLETIN". DECEMBER 1,1917. Producers of coal emphasize particularly Tobacco has been selling freely and some difficulties in labor and transportation as being high grades bring unheard-of prices; in some their most serious problems, and say that but instances as much as $1 per pound, the average for these the output could be made to take care price being 30 cents to 35 cents. of the increased consumption. The railroads Money is readily obtainable, but the demand are not able to furnish sufficient equipment to is good, rates ranging from 5J to 6 per cent. keep pace with the increased fuel demand, and Farmers7 paper is being paid up more closely are themselves complaining of the inadequate than has ever been known and considerable supply and exceedingly high prices. payments are being made on mortgages. Land Cotton picking is about complete. Cotton sales are unusually active at advancing prices. is selling freefy and about as fast as the railroads Deposits in banks are the highest ever known, can move it. This is the tenor of advices from but the demand for financing in every line has interior points, but the ports report a disposi- offered ample employment for them. Cleartion to hold cotton for higher prices and busi- ings show an increase of 35 per cent and postness is restricted by lack of shipping facilities. office receipts also indicate a considerable in- Normal freight rates to Liverpool were $1.50 to crease. The latter is attributable to a consid- $1.75 per bale, but are now $45 to $50 per bale. erable extent to the location of cantonments in the district and the increased rates of postage. The clothing trade seems to be a little slow in general lines, attributable to mild weather and Crop preparations are naturally limited in the large number of men who have gone into extent at this season of the year, but fertilizer different branches of the Government service. manufacturers anticipate an active demand for Manufacturers in all lines are running to their goods at remunerative prices and are urgcapacity. The consumption of cotton is large ing early shipments for the coming season. even at present high prices, as products are still The prices realized from crops in this district yielding excellent profits. Munition contracts have increased its wealth and resources to a in this district have been'about completed and very appreciable extent, and trade activities our largest locomotive plant is now running full are reflected in the increased volume of busitime on regular work for foreign shipment. ness being handled by the Federal Reserve Wagons and agricultural implements are in Bank of Richmond. strong demand, but labor is scarce and wages The response of the people and the banks in have advanced 40 to 50 per cent. The volume this district to the second Liberty Loan has of business is large, owing to the high prices, been most gratifying. The minimum apporbut the number of vehicles and implements tionment to the district of $120,000,000 was shows a decrease. Implement dealers are urg- about 8 per cent of the banking resources and ing jobbers to lay in supplies now and avoid the maximum apportionment of $200,000,000, congestion and embargoes which are likely to be over 13 per cent of the banking resources. encountered during the spring. The subscriptions reached the enormous total of more than $201,000,000, the New York dis- The leather market is strong, buying active at trict and this district being the only two in full prices, collections good, and trade limited which the subscriptions exceeded the maximum only by the obtainable volume of raw materials. apportionment. Prices paid farmers for hides are the highest for many years. DISTRICT NO. 6—ATLANTA. The peanut crop is only about two-thirds of Business continues good. The Sixth Fedan average. Ordinarily prices range from 3 to eral Reserve district subscribed to approxi- 4 cents per pound, but are now 8 and 9 cents mately $90,000,000 of the second Liberty Loan, per pound. The demand for peanut butter and while $40,000,000 was paid in on bond and other food products has stimulated the subscriptions on November 15, the condition demand, which has resulted in these high prices. of the banks of the district proved sufficiently Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

DECEMBER 1,1917. FEDERAL BESBBVE BULLETIN. 965 strong to enable them to finance all payments In the dark tobacco fields a large crop has without creating any financial strain. It is been housed and buyers are offering as high as not expected that the next installment pay- $21 per hundred, the low mark being $15. ment due December 15 will have any material These prices are beyond expectation, the avereffect on business conditions generally, nor age offered being about $18 per round. interfere with the ability of financial institu- The Florida citrus crop is possibly 40 per tions to care for the legitimate money or credit cent short. Prices and demands, however, are requirements of the district. Bank clearings good. Splendid weather prevailed in Tennescontinue to increase. There has been a no- see for planting winter crops, with something ticeable stiffening of money rates during the more than an average acreage sown to wheat. past month. In Georgia, Alabama, and Mississippi the Wholesale and retail houses report an excep- weather has been unfavorable and very little tionally large volume of business during No- grain has been put in, though preparations vember, with collections better and more satis- are under way for a good planting between factory than at any time within the past now and Christmas. For the first time in 20 years. One wholesale house reports a col- many years winter grains will be planted in lection of 70 per cent of their entire receiv- the northerly section of Florida. Louisiana ables due and not due on their books October 1. has experienced an unprecedented drought, in Advance orders for spring business are in ex- fact, some parts of Louisiana are over 30 inches cess of last year. short of normal rainfall. This has seriously affected the cane crop, the cut being not over There is considerable congestion in railroad 60 per cent of a crop. Though the fertilizer freight and passenger service and complaint is shipping season has not opened, indications made of delay in handling the mails. Diffipoint to an increased use of approximately 15 culty is experienced in obtaining merchandise, per cent, with prices probably to range 33£ per it being nothing unusual for express from cent advance over previous year. New York City to require 7 to 10 days in transit. Railroad, express and postoffice re- The people are seriously taking up the work ceipts continue to increase. Industrial plants of food conservation and pledge cards are willare operating at high speed, though labor con- ingly signed by all classes of citizens. The ditions are not so bright as in previous months. Tuesday "meatless days" and Wednesday Withdrawals for Army service are beginning to "wheatless days" prevail largely throughout have an effect, in addition to the inclination of the district, especially in restaurants and a certain element of labor "laying off" on hotels. The general trend is to a more serious account of inability to withstand the influence view of the war and a clearer realization of the of a prosperous wage. necessity of a more rigid economy. In this Cotton oil mills are largely employed in connection the sale of Liberty bonds has had a crushing peanuts. On account of shortage of strikingly good effect with wage earners and cotton in certain sections and exorbitant salaried people who are the more numerous prices for raw products, and with an over- subscribers to bonds. Objection to conscripabundant supply of peanuts, these mills find it tion has practically ceased, as evidenced by a more profitable to crush peanuts than cotton greater solidarity for winning the war. seed. The industry is proving profitable to the DISTRICT NO, 7—CHICAGO. peanut producer. High prices brought about a considerable Throughout the seventh Federal Reserve marketing of cotton, and with plenty of freight district business involving necessities is active room it would not be long before the crop with Government orders playing an important would be in the hands of the spinners. part and labor in strong demand at high wages. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

986 FEDEEAL EESEEVE BULLETIN. DECEMBER 1,1917. Liberty Loan withdrawals have caused some In dry goods advance sales are satisfactory disturbance of banking equilibrium, but things in dollars and cents volume. A tendency is are adjusting themselves, and the promptness noted on the part of retailers to buy; more of this adjustment in a given locality will va^ conservatively and the demand for so-called with the nature of its industries. Borrowing luxuries is expected to decrease inversely with in the market has been restricted practically the increase in demand for Government to short-term maturities owing to the present necessities. There is a scarcity of goods. abnormal market depression. During the Lib- Collections are good. erty Loan flotation investment houses gener- Furniture manufacturers report business at ally dropped their own business for that of about the same level as last month, but they are the Government; however, the anticipated re- somewhat confused as to the future in the light kindling of interest in securities did not of rumors regarding possible Government redevelop, and no material improvement in this striction of loading of lumber for furniture facdirection is now in sight. tories. The car shortage is causing some Winter wheat looks good in some localities, uneasiness. Collections are fairly satisfactory. though wheat, as well as rye, was sown late Scarcity of grain at terminals is mentioned as in other sections and it is too early to forecast a very unfavorable circumstance and contributaccurately. Soft corn is much in evidence, but ing causes to the shortage are given as the no particular hardship is reported, as this is attitude of farmers who are delaying the usual being fed live stock, which is bringing high movement, also the shortage of carrying prices. The bean yield is better than antici- equipment. Corn prices are working higher, pated and potatoes average well, though frosts due to the unanticipated poor quality. Nothave had some effect. Throughout the dis- withstanding the high prices for oats, farmers trict increased acreage of winter wheat and are said to be holding out for still greater rye is reported. Monej^ rates are expected to returns, and this is keeping receipts at terminals remain hard for some time to come. light. This is the slow season for agricultural Difficulty in securing sugar and flour is implement concerns, and the usual condition is mentioned in the grocery line and the inability aggravated by the bad weather in October to secure these staples effected a drop in sales for making a late season. The labor shortage and some wholesalers during the last half of Octoscarcity of materials are noticeable. ber. Retailers are uncertain as to what stand The volume of pleasure automobile business to take as to increasing their stocks in the face is causing manufacturers some concern, but it is of price fixing and the wave of economy among suggested that by directing their facilities into consumers. The volume seems good and colother channels, such as truck and aeroplane lections are fair to good. engine manufacture, hardship in this direction The hardware line appears to be in satiswill be minimized. factory position, with money value of sales Building and construction are far below generally large and collections good. normal, due to governmental restriction of the The jewelry business suffered somewhat use of certain materials. Scarcity of labor during October and this is attributed to the and of all materials are equal factors. Liberty Loan campaign. Its volume decreased The car situation is still to be considered in from normal as established in the past year but the coal industry and demand exceeds the expectations are for a satisfactory resumption available supply. Production in Illinois has of sales. shown some improvement in the last two weeks. The leather industry is absorbed in Army and Conditions in the distilling line are far below Navy contracts and can afford to overlook a normal, with no new activity promising. falling off in demand from civilians. Tanners Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

DECEMBER 1, 1917. FEDERAL RESERVE BULLETIN. 967 are busy, jobbers are quiet, and retailers report DISTRICT NO. 8—ST. LOUIS. satisfactory business. Collections are good and General business in this district continues labor for the present seems satisfied. active. Especially is this true of those indus- Receipts of live stock are in good volume and tries which are furnishing supplies to the Govthis is expected to be maintained. The soft ernment. The requirements of the Governcorn has prompted feeding to an unusual degree ment have had a tendency to divert the proand prices are high. duction of nan essentials to those things which Lumber distribution is handicapped by are needed for the prosecution of the war, and shortage of cars. Orders, however, have been in many instances orders of civilians and priwell maintained for this time of year and prices vate enterprises are being turned aside to take hold up well. Retailers are rather pessimistic, care of Government needs. The restraints due to the continued slump in building. Collec- imposed by the Government have had a detertions are not as good as they might be. rent effect on some industries, and the scarcity Mail-order houses report an increase for this of supplies has retarded other lines, but on the month over the same period last year. whole the stream of ordinary business is run- Piano manufacturers generally report a ning freely and the present outlook is favorable. good volume of business with a scarcity of Manufacturers of shoes and ready-to-wear skilled labor, materials, and shipping facilities. garments are especially busy, and wholesale Collections remain good. dry goods companies, hardware jobbers, drug Shipbuilders arc still working at capacity, dealers, and retail stores all seem to be transwith labor shortage an outstanding feature. acting a large volume of business. There has Steel is also at capacity. The balance of pro- been a good demand for all kinds of seasonable duction not required by the Government is merchandise. A number of country merfinding a ready market. Collections arc good. chants are buying for the future, apparently A brisk demand from domestic sources is looked feeling that the prices will not be lower. for to take care of next year's business now that The prices on commodities continue high, the price question has been settled. but are made more bearable in the country Raw wool is at top prices and difficult to pro- districts by the unusually high prices the farmer cure in desirable quality. Some relief is ex- is receiving for his products, and in the city by pected from South America and Australia, and the full employment of labor at high wages. the increased use of cotton mixed goods as a Government reports in dicate that on November 1 substitute is suggested. The Government is the price index of all crops was 46.1 per cent practically monopolizing the mills. higher than a year ago and 104.3 per cent higher Clearings in Chicago for the first 21 days of than the average of the preceding five years. November were $1,560,000,000, being $170,- Due to the prevailing high prices and the 000,000 more than for the corresponding 21 campaigns by Federal authorities, there seems days in November, 1916. Clearings reported to be a growing tendency on the part of conby 20 cities in the district outside of Chicago sumers to economize and be more careful in amounted to $297,000,000 for the first 15 days their purchasing. This is shown, by the more of November, 1917, as compared with $267,- general centering of demands in the staple 000,000 for the first 15 days of November, 1916. classes of merchandise. Signatures to the Deposits in the 12 central reserve city member food pledges have also been obtained freely, banks in Chicago were $837,000,000 at the close and many restaurants as well as homes are of business November 20, 1917, and loans W3re now observing meatless and wheatless days. $594,000,000. Deposits show a decrease of Collections throughout the district are reapproximately $1,000,000 over last month and ported good, except in a few sections where the loans an increase of approximately $24,000,000. crop movement has been somewhat late. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

963 FEDERAL BESERVE BULLETIN. DECEMBER 1,1917. The production of all crops this year in the j activities during October were considerably State's within this district is estimated to be ; below those for the corresponding month last TTA per cent above the average for several \ year. On account of the high prices of mateyears past. This year's corn crop in the States ; rials and the scarcity of labor, there is very little within this district was estimated on November building going on, outside of extending factories 1 to be 389,339,000 bushels more than that of ; to take care of war orders and necessary places 1916. The potato crop also greatly exceeds1 of abode. the production of last year. The winter wheat : The chief financial activities of the month is now all planted, the acreage being consider- ; have been those involving the flotation of the ably in excess of that of 1916. Rain is needed second Liberty loan. The subscriptions to in some quarters. '• this loan were closed on November 1, with the On account of the cotton in the southern ; total subscriptions in this district aggregating portion of the district having been damaged by ; $184,280,750, or $64,280,750 more than the killing frosts early in October, the crop is ! minimum assigned. considerably shorter than expected. Prices ' There has not been much change in bank are high, but the cotton is not moving as : rates since the last report. The rate to cusrapidly as it usually does in a normal season. i tomers in the larger centers ranges from 5J This is doubtless due partly to the holding of j to 6 per cent, with rates in the outlying discotton for higher prices and partly to the ! tricts slightly higher. inability of exporters to get ocean tonnage. ! Commercial paper of the best names is being The railroads are operating to capacity, but i offered at from 5| to 5f per cent. There there is still a considerable shortage of freight is a fairly strong demand from country banks cars, which is causing delays in deliveries and for this time of the year, but the large city handicapping ordinary business. \ banks, as a rule, are not in the market for Through intercession by the Government, j commercial paper. the trouble between the coal miners and the ; operators in Illinois has been settled, and the , DISTRICT NO. 9.—MINNEAPOLIS. coal situation is improving. However, the i After a long period of very favorable fall demand still exceeds the supply, due in great ! weather, the northwestern grain territory emmeasure to the inability of the mines to get ' braced in the Ninth Federal Reserve district cars and abnormal consumption. ; is ready for winter. A large amount of fall Labor continues scarce in this district. work has been accomplished. The farmers Trained men in the different lines are especially j have been busy thxoughlut the month preparin demand. Unskilled laborers also find ready : ing their fields for spring planting. In the employment. In many industries it has been , western part of the district, where the 1917 necessary to obtain women to do the work j crop was short, there has been unusual activity, formerly performed by men. and line elevator managers report that the During the past month there has been a outlook is for an increased acreage of wheat and decided increase over the previous month in other small grains next year. In western the receipt and sales of cattle, horses, and mules North Dakota, where the serious losses on the in the St. Louis market, with decreases in the 1917 crop have created a serious problem, receipts and sales of hogs and sheep. conferences are being called, under the lead of Postal receipts for October in St. Louis, the State agricultural college, to prepare in Louisville, and Little Rock show substantial advance to meet the shortage of seed, and to increases over the same month last year, while consider plans of financing for farmers who the receipts in Memphis show a slight decrease. need assistance. Reports from Little Rock, Louisville, Mem- j The receipts of wheat at Minneapolis and phis, and St. Louis indicate that building j Duluth terminals are considerably lighter than Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

DECEMBER 1,1917. FEDEBAL RESERVE BULLETIN. 969 a year ago. To the middle of the month, the increase in bushels of 50 per cent over the 1916 total receipts were 7,000,000 bushels short as crop. Frosts did considerable damage to the compared with the same period a year ago, and corn, the extent of which can not yet be judged elevator stocks amounted to 2,607,000 bushels accurately. The soft corn has created an as compared with 18,877,000 bushels a year unusual condition in the way of a wide variaago. The output of flour by the mills of the tion in prices bearing little relation to the district has been curtailed by the difficulty in intrinsic value of the various grades. With securing cars, and railroads are making every prices ranging from 25 cents to $2 a bushel, and effort to induce all flour shippers to load every no accurate way of judging the amount of car received to its fullest capacity. Mills have moisture in the new corn, local dealers are been warned that unless this is done there is checking their buying rather than continue danger that some of them will have to shut under such, hazards. down for lack of cars. While the wheat acreage asked for may not In Minnesota, the public safety commission have been readied, the amount planted is in has introduced war bread, which is being,manu- excess of that for last year. Missouri reports factured under its direction, and distributed an increased acreage over 1916 of 37 per cent. from licensed stores at 6-J- cents for a full pound Oklahoma has planted 2 per cent more. Relialoaf. A daily distribution of 9,000 pounds in ble reports from Kansas and Nebraska are not St. Paul and Minneapolis has already been available, but indications are for slight increases, arranged for, and the amount will be increased probably about 5 percent, when the seeding is as additional stores are licensed. War bread is finished. Complaints have been made that not as rich and nutritious as bread ordinarily dry weather east of the Rocky Mountains sold, but is obtainable at a substantial reduc- injured some of the early planting, but rains tion of price, and is in strong demand. about the middle of November have restored Business conditions over the district are much of the damage. favorable. Retail trade at the larger centers At the local market for October, wheat shows sume evidences of a disposition on the receipts were only one-fourth and shipments part of buyers to purchase conservatively, and one-eighth those for a year ago. Corn receipts to put some measure of control on the buying were 40 per cent more and shipments 43 per of luxuries. cent less for the same two periods. At the Retail trade at country points does not seem end of the month the visible supply of wheat to be much affected, and is in good volume. was only one-twentieth that for a year ago and The outlook is generally favorable. of corn four-fifths. The food administration Construction is in fair volume, but consists has been able to improve the conditions with chiefly of necessary business structures and the mills and keep them going at almost full similar work that can not be deferred. A fair capacity. amount of residence building is in progress, Live stock.—In this district for the firs I: 10 although much of that class of work has been months of the year cattle receipts at the mardeferred on account of the high cost of labor kets reached the total of five and a half millions. This is a fourth more than were marand material. M.oney rates are very firm and keted for the period last year, and the movethe demand at both city and country banks is ment continues strong, owing principally to the active. Industrial conditions are favorable. dry weather and short pasturage in the belt- The larger concerns have ample orders ahead east of the Itocky Mountains, which forces and labor is fully employed. cattle to market in thin condition. Receipts DISTRICT NO. 10—KANSAS CITY. for October were 37 per cent over the previous Agriculture.—The wheat crop of this year for month and 18 per cent over October a year the district was only two-thirds that for last ago. The poorest grades, used for canning year, but late estimates for corn indicate an purposes, are bringing about the same price as Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

970 FEDERAL RESERVE BULLETIN, DECEMBER 1,1917. a year ago, but all other classes are selling at ate weather and the assistance of the Governgreat deal higher, beef cattle bringing from 30 ment authorities, actual want and suffering to 40 per cent more* The movement of stock have been avoided. The Kansas-Missouri outcattle for feeding purposes continues strong, put has been lessened and threatened entirely and should remain so on account of the soft by an incipient strike. Colorado will this year corn to be utilized in feeding on the farms. produce 13,000,000 tons, nearly a third more Some difficulty is being had on account of than last year, but will not reach the maximum shortage of stock cars for shipping feeders to of 2,000,000 tons more, because of a scarcity of the north and east. labor and cars, which has curtailed the output For the 10-month period hog receipts were at a third of the mines. Increased developmore than 7,000,000, being a decrease of 11 per ment of the mines in Wyoming is being looked cent from the figures for last year. October to as a partial solution, and authorities are atmarketings, while 28 per cent less than for the tempting to provide transportation facilities same month a year ago, showed an increase of accordingly. 35 per cent over last September. Prices are Oil.—In the Mid-Continent field operators about 80 per cent in advance of those for last complain that notwithstanding the high prices year. Since the food commission established for crude oil, full development has been limited a minimum price, the demand for stock hogs by the cost of labor and supplies and the diffihas been greatly stimulated at prices almost as culty in getting both. Yet, the number of high as for fat hogs. wells completed for October is nearly 40 per The movement of sheep for October increased cent greater than for September, with a slight 17 per cent over the previous month and 12 per increase in total production. Piping from old cent over October, 1916. wells in Eastern States is being shipped in and Mining.—Production of all ores for the Mis- sold at good prices. The larger companies in souri-Kansas-Oklahoma lead and zinc district Wyoming fields have secured supplies with the during the 10 months of the year, compared intention of drilling during the winter, there with the same period a year ago, increased being now in that State about 200 wells partly 100,000 tons, with an increased value of completed. $2,000,000. In spite of the lower average The problem of waste gas at the wells in price, stocks are practically three times as great, Oklahoma is being handled by State authorities, but conditions promise no further increase in with the result of an estimated saving aggrethe immediate future. Total shipments for the gating $500,000 a year. month ending November 11 decreased 2 per Lumber and construction.—The lumber trade cent over the month a year ago. Prices for is quiet. There is little local home building, as zinc were slightly less than for September. Lead many of those who would build have entered prices averaged one-eighth lower, with an ex- the Army. High prices have eliminated the treme drop of one-third. speculator, while the question of labor acts as a Under war stimulus, Nebraska will this year check in the larger cities. Some of the smaller produce $2,500,000 worth of potash, which is cities are notable exceptions. Owing to the eight times the value of her entire mineral out- greatly increased production of oil near there, put seven years ago. Interest is being aroused Wichita has had a remarkable increase in buildalso in the potash beds of the Rocky Mountain ing. During October Wichita, with an increase States, and official surveys of the beds are being of 661 per cent over October a year ago, is first arranged for. and Lincoln, with an increase of 517 per cent, is The coal situation has been serious. From second for all the cities reporting in the entire every part of the district has come the call for country. The country trade is awakening, but fuel. Stocks are low, but owing to the moder- is not yet really active, for farmers are not yet Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

DECEMBER 1,1917. .FEDERAL RESERVE BULLETIN. 971 used to paying the higher prices, and are busy credit terms are growing shorter in all lines of harvesting the corn. business, with both wholesalers and retailers. Labor.—The strike record shows an improve- DISTRICT NO. II—DALLAS. ment over the past few months and the middle Were it not for the unsatisfactory reports of November found no strike of any consefrom the drought-stricken areas of the district quence existing or contemplated in the disthe business situation could be reported as trict. There were ten or twelve small strikes generally favorable, with normal activities for of short duration. During the entire month the season. The unprecedented period of dry the miners of the Missouri-Kansas-Oklahoma weather has, however, curtailed activities in coal district threatened to strike and the situthe South, Southwest, and West, and our correation was tense. Some of the men were out spondents there are discouraged over the outfor short periods, but in the middle of Novemlook. Some rain has fallen in portions of these ber a conference of all parties directly interested sections during the latter part of the month was called and the miners yielded to the wishes and has been very beneficial, It was hardly of the Government administrators. sufficient to break the drought, and conditions From nearly every locality and industry will not become normal until after heavy rains. comes the call for laborers. The lack of farm Agricultural conditions show little change labor is resulting in the increased use of mafrom 30 days ago. The bulk of the cotton crop chinery for every purpose to which it can be has been marketed, and there is no very large adapted. The cessation of Government buildamount left in farmers7 hands, though reports ing will probably be offset by the increased indicate scattering lots held by merchants and demands of the National Army this winter, so others in the district. Lack of export facilities that immediate relief for the situation is not at and shortage of cars at compress points have present in sight. retarded the movement. Exporters are find- Mercantile.—Trade conditions are unusually ing it difficult to make shipments. active; during the past six weeks many houses The outlook for the wheat crop in this district have doubled their sales for the same period is not encouraging. In some sections it has last year. Orders for holiday goods are very been too dry to prepare the ground for wheat, heavy. Groceries, drugs, and provisions are in and farmers were afraid of losing the seed if the active demand at increasing prices. Garment grain is sown under present conditions. The factories of the West are working to capacity, wheat already planted has failed to germinate, there being an undersupply of men's garments on account of the dry weather, and unless rain and an oversupply of women's ready-to-wear falls soon the areas planted in wheat will be clothing. There is a continued decline in the plowed up and put in other crops. The rice crop sale of pleasure automobiles, but this is more has brought excellent returns and reports from than made up by the increased demand for the producing sections are that growers have auto trucks and tractors, while the auto accessold all their crop and are unusually prosperous. sory and tire trade continues to increase. With peanuts bringing from $1.75 to $1.80 per Financial.—The unusual business activity of bushel in northeast Texas, and prices for other the month has been reflected in the bank clearcommodities in proportion, conditions in that ings. Clearings for 14 cities in the district for section are good and farmers in excellent shape, October passed the billion mark, with an inmerchants are enjoying a good trade and colcrease of 30 per cent over the same period last lections are excellent. North and northeast year and were more than twice the amount Texas may be said to be the one bright spot in two years ago. this district from an agricultural standpoint. Money is in marked demand, rates have A good crop of beans has been produced in made a slight advance since last report, and the western portion of the district, though Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

972 FEDERAL RESERVE BULLETIN. DECEMBER 1,1917. growers are somewhat disturbed by the Gov- show some improvement with the marketing ernment price fixing, which gives them less of cotton and farm products. There has been than what they expected for the output. The in some sections foolish rumors that the Govalfalfa crop in that section is also excellent, and ernment intended to conscript or seize all the prices received are very high. moneys on deposit in the banks. Effective As one correspondent reports, "cattlemen steps were at once taken to meet and refute are strictly up against it on account of the these rumors and they have practically subdrouth." Those who have pear flats in their sided without doing any substantial injury. pastures are feeding cottonseed cake and burnt The prompt and conclusive answer to these pears; others arc arranging to export to Mexico, absurd rumors given by Secretary McAdoo, where excellent range conditions are reported. published in the daily press, did much to com- A recent joint conference of representatives of pose the situation. It is a matter of congratthe Texas Cattle Raisers7 Association and Texas ulation that the banks over the district, both Cotton Seed Crushers7 Association was held State and National, are in such good condition, looking toward relief for cattlemen in the South- and that their management, with a very few west and measures taken to provide feed for the exceptions, have met the duty of the hour so cattle in those sections. As a result of the con- nobly in their patriotic effort to make tho secference a resolution was adopted fixing a maxi- ond Liberty Loan a success. Clearings show a mum price of $50 per ton for loose cracked large increase for October over October 1916, or cake, and $53.50 per ton for sacked cake, on a 36 per cent. With the close of the Liberty basis of 43 per cent protein—this price on the bond campaign some activity is noted in bonds, basis of f. o. b. mills. Grass is reported as good and brokers are receiving an increased number in most parts of New Mexico and Arizona and of inquiries. In a statement issued by the the cattlemen in those sections are in better commissioner of banking of Texas under date condition than farther south. On account of of October 27, attention was called to the unthe car shortage sheep and cattle men have been usually prosperous condition of tho State banks unable to make shipments in the Albuquerque on the call of September 11, 1917; the State section. As in other parts of the range coun- banks reflecting a stronger condition than has try, rain is badly needed there and stock will ever been shown by a previous statement, which suffer unless water holes fill up before cold indicates the prosperity existing in most secweather sets in. It has been necessary for tions of Texas at this season. stockmen to buy a largo amount of cottonseed Lumber manufacturers report that the car cake with which to feed during the winter situation has become much worse in the last months. 30 days, so much so that at the present time Since the close of the second Liberty Loan it is almost impossible to get cars, even to load campaign banks of the district have boon oc- Government ship material; this even in the cupied in making the second installment pay- face of the appeal of the Government Shipping ment and closing subscriptions on the issue. Board to the mills to get out their material. The payment of November 15 was made with- The demand for retail yard trade is very light, out undue confusion in the financial situation, but prices are steadier and show an upward the depositary plan being used to a large extent tendency. Were it not for the car situation and payments made by credit in Government conditions in the trade would be satisfactory. account. There is a good demand for money, There is some evidence of restoration of and offerings with this bank continue heavy. normal building operations in the past month, No advance is noted in interest rates and they and with the completion of cantonment work remain steady. Bank deposits are at good fig- and aviation contracts, thus releasing workures and continue to increase. Collections men for ordinary construction, it is expected Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

973 I.)i-:cj:Mi;Ei: 1. 1917. FEDERAL RESERVE BULLETIN. the industry will be more active during the DISTRICT NO. 12—SAN FRANCISCO. winter, Permits issued at the principal cities— The President of the United States has Austin, Beaumont, Dallas, El Paso, Fort Worth, appealed to all eligible State banks and trust Galveston, Houston, San Antonio, Shreveport, companies to become members of the Federal and Waco—in October, and the valuation of Reserve system in order to contribute their the same, were larger than in September, but proportion toward fortifying the Nation to show a decrease over October, 1916, the figures meet present and future financial strains growing being as follows: October, 1916, $1,671,469; out of war requirements. He urges this as a October, 1917, $989,034; decrease, $682,435, or patriotic duty, citing the solemn obligation 41 per cent. to the country resting upon every bank officer Wholesale and retail trade continues in good and bank director, and with deep meaning volume, and sales are in excess of last year. says: "The extent to which our country can Mail-order houses are enjoying an unusually withstand the financial strains for which we busy season, with collections in keeping: es- must be prepared will depend very largely pecially is this true at cantonment points. upon the strength and staying power of the All industries of the district are active and Federal "Reserve Banks." running on full time. In the twelfth Federal Reserve District there Skilled labor in all its brandies is well em- are 1,299 State banks and trust companies, ployed, and in various quarters there is con- having $148,000,000 capital and surplus and siderable unfilled demand for skilled workers in $1,160,000,000 deposits. Those having capital certain lines. This condition, however, is not and surplus such that they are eligible for expected to continue, as the work on canton- membership are as follows, according to the ments, aviation camps, and similar work is now annual reports of last year, when deposits were being completed, and this means that several probably 25 per cent less than now: thousand skilled workers, such as carpenters, p o a f i e n m te p rs lo , y p m lu e m n b t. ers, and electricians, will be out State. e N li b g u e i m b r l - e. s C u a a rp n p l i d t u a s l . de T p o o t s a i l ts. The coal mines of Oklahoma are working to •\ri/ona 20 82,743,000 810.583,000 capacity, and the car situation at the present California 341 35.432,000 266' 008,000 Idaho 53 3'220,000 20.782,000 time is better than usual. Nevada 18 2,103,000 13; 342,000 Oregon 75 9,230,000 30,581,000 Drilling is unusually active in the oil fields Utah 00 6,789,000 30,298,000 Washington 115 12,140,000 45,478,000 around Iowa Park, and new pipe lines are being Total 742 78,512,000 423,072,000 constructed in that section. Local refineries there are working to capacity. Drilling pipe National banks, being under Federal jurisis hard to obtain, and operations are hampered diction, were all constituted members from the on account of the water scarcity. A new field outset. In this district there are 534 national has recently been developed near Coleman. banks, having $931,000,000 deposits. (Comp- Two wells have already been brought in there trollers summary Sept. 11, 1917. Deposits by and pipe lines have been contracted for and summary June 30, 1916, were $696,000,000.) are now being laid to pipe the oil a distance of Thus if each eligible State bank and trust several miles. company, whether large or small, should To summarize business conditions in this dis- respond to the President's appeal, the strength trict they may be said to be generally satis- of the Federal Reserve Bank of San Francisco factory, and optimism prevails as to the out- would be increased approximately 50 per cent look. It is hoped that good rains will fall over both in capital and reserve deposits, and its the drouth-stricken area soon, and this should ability to render aid would be increased in be a stimulus to all lines of trade. like proportion. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

974 FEDEBAJL EBBBEVB BULLETIN. , 1917. State banks and trust companies in this book accounts are correspondingly reduced. district which have become members or have An acceptance carrying the responsibility of made application are as follows: both seller and buyer and growing out of a sale of goods is a more desirable and more surely liquid investment than one-name paper Capital State. ! Number.; and Deposits. not necessarily growing out of sales of goods. surplus. Labor conditions in this district are still Arizona 0 I unsettled, but as this is written there are no California... 0 : Idaho Si 382,500 8839,000 important strikes. Those in the copper dis- Nevada Oregon 2 i 2,110,000 17,515,000 tricts of Arizona have been settled and normal Utah 0 : Washington. 9 3,758,000 29,298,000 output restored. Shipbuilders both about San Total.. 13 ! 5,950,500 | 47,052,000 Francisco and in the Northwest have returned to work, although dissatisfied, it is reported, Of eligible State banks and trust companies, with the increase of wages granted averaging those holding two-thirds of the total deposits 35 per cent. are in California, from which no application The United States Mediation Board, Secrehas yet been received. tary of Labor W. B. Wilson, chairman, has re- The State superintendents of banks in Idaho cently had many sessions here with various and Oregon have circularized banks under their labor organizations in the endeavor to reach jurisdiction, urging them to join the Federal such adjustments as will result in continuous Reserve System. Those of other States, includ- operation of industries. ing California, have expressed themselves as In the Northwest reduced lumber production favoring prompt response to the President's for the remainder of the year is anticipated. appeal. Mining products in Arizona will exceed those Banks, whether small or large, member or of last year, copper having an estimated value nonmember, may further aid the desired mobil- of $200,000,000; other metals, $60,000,000. ization of gold by sorting out gold certificates Cotton acreage has risen to 38,850, with a and shipping them to the Federal Reserve product valued at $6,000,000. Bank (in amounts of $1,000 or multiples). Car shortage is becoming serious, the only The Federal Reserve Bank will pay express immediate relief lying in better cooperation by charges on such shipments and, if desired, will shippers in heavy loading and quick discharge. send Federal Reserve notes, charges prepaid, The wheat crop in Washington will total in return; or will credit upon its books or about 27,000,000 bushels, against 45,000,000 remit to other centers for credit. Those able last year. Fall planting is being hampered by to ship gold coin should also write to the Fed- lack of precipitation. eral Reserve Bank. California citrus shipments for the year end- The increasing use of trade acceptances is ing November 1, 1917, surpassed all records, making for sounder bank paper. Grain dealers aggregating 54,361 cars, the previous high recand millers of the Northwest adopted the use ord having been 48,548 cars in 1913-14. The of trade acceptances on August 1. At a crop of navel oranges for the current season, recent meeting at Portland of the West Coast curtailed by excessive heat last summer, is Lumbermen's Association the use of trade estimated at 25 per cent; valencias, at 80 per acceptances was embodied in the new terms cent; and lemons, at 71 per cent of normal. of sale. Beginning November 1, drafts will The raisin crop will exceed that of last year be sent out twice a month for acceptance, by 35,000 tons. no matter how small the account. To the During October the shipments of petroleum extent that trade acceptances are used, open from California fields exceeded production by Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

DECEMBER 1,1917. FEDERAL HESERVE BULLETIN. 975 860,892 barrels, reducing stored stocks, on | The situation throughout the district is one October 31 to 33,795,115 barrels, being the low- of great industrial and agricultural activity and est figure recorded since February, 1911. large volume of trade. The splendid response Fifty-six new wells were completed during the | of this district in buying $290,000,000 of the month, }delding an initial daily production of ! bonds of the second liberty Loan evidences a 14,860 barrels. j widespread, fervent, and patriotic desire to Building permits in 20 principal cities de- I serve the Nation, but there is as yet little eviclined from $7,533,000 in October, 1916, to ! dence of an effective realization of the neces- $4,684,000 in October, 1917. Clearings show sity of service by curtailing individual conan increase of 35.6 per cent, Ogden leading with sumption of the products of labor in order 60.9 per cent increase and Tacoma second, | that the Nation may consume instead for war with 55.7 per cent. I purposes. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

976 FEDERAL RESERVE BULLETIN. DECEMBER 1,1917. DISCOUNT OPERATIONS OF THE FEDERAL RESERVE BANKS. During the month of October discount opera- Discounts for the 10 months of the present tions of the Federal Reserve Banks totaled year, including collateral loans to member $2,681,165,854, compared with $548,164,104 banks, aggregated $4,870,083,422, of which for the month before, and $750,270,739 for $4,358,,327,401, or 83 per cent, were collateral June of the present year, when Government notes, while $15,168,499 are specified as trade financing in connection with the first Liberty acceptances and $8,679,267 a commodity pa- Loan may be said for the first time to have per. As compared with corresponding 1916 called into full play the discount facilities of figures, trade acceptances discounted by the the Now York Federal Reserve Bank. Mem- Federal Reserve Banks increased about 366 bers obtained accommodation just as before, per cent, while commodity paper discounted in connection with the first Government loan, by them declined about 42 per cent. primarily through the discount of collateral Owing to the large preponderance of daynotes of the shortest maturities secured by to-day and 15-day collateral notes among the Liberty bonds and certificates of indebtedness, total discounts for the month, about 97 per and to a smaller extent through the discount cent of these discounts is shown to have been of such notes secured by commercial paper. 15-day paper (i. e., maturing within 15 days Of the total discounts for the month, from date of discount with the Federal Reserve $2,262,474,850, or over 84 per cent, represents Bank), the proportion rising to 99 per cent in the amount of member banks' notes collatthe case of the New York bank. erated by Government securities, $307,725,601, On the last Friday in October the Federal or over 11 per cent, the amount of such notes Reserve Banks held a total of $397,094,000 otherwise secured, and only $110,965,403, or of discounted bills, as against $233,539,000 less than 5 per cent, the amoTint of customers' at the end of September and $197,243,135 at paper rediscounted with the reserve banks. Of the total amount of collateral notes dis- the end of June, following the consummacounted during the month, over 90 per cent tion of the first Liberty Loan. Of the total, represents the share of the New York bank, $208,965,000 is represented by collateral notes which reports the discount during the month secured by Liberty bonds and certificates of of $2,152^680,000 of collateral notes secured by indebtedness, $62,922,000 by collateral notes Liberty bonds and certificates and of otherwise secured, $7,994,000 by agricultural $185,687,000 of collateral notes otherwise paper, $109,065,000 by industrial and comsecured. mercial paper, §6,064,000 by live-stock paper, and the remainder, $2,804,000, by miscella- Among total discounts for the month, trade neous paper, including customers' paper secured acceptances (two-name paper) figure to the by Liberty bonds or certificates and nonmember extent of $4,442,261, compared with $855,834 banks' paper indorsed by member banks. Over for September and an average of $1,191,804 for the nine months of the present year; also two-thirds of the agricultural paper was held $1,659,491 of commodity paper, compared by the Richmond, Chicago, Minneapolis, and with $500,141 for September and an average Dallas banks, while over 88 per cent of the of $779,975 for the nine-month period ending live-stock paper held is reported by the Minne- September of the present year. The largest apolis, Kansas City, and Dallas banks. increases in the monthly discounts of trade During the month the number of member acceptances are shown for the San Francisco banks increased from 7,751 to 7,783 largely as and Cleveland banks, while Atlanta reports the result of accession to the system of State nearly 70 per cent of the commodity paper dis- banks and trust companies. The number of counted during the month. i discounting members shows an increase from Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

DBCBMBBK 1,1917. FEDERAL RESERVE BULLETIN. 977 946 in September to 1,129 in October, the largest number of accommodated members for Chicago Federal Reserve Bank reporting the the month, viz, 222 banks. Bills discounted by each Federal Reserve Bank during October, 1917, distributed by sizes. To $100. Over SI00 to 8250. Over S25010 $500. Over $500 to §1,000. Over $1,000 to $2,500. Banks. Pieces. Amount. Pieces. ! Amount. Pieces. Amount. Pieces. Amount. Pieces. Amount. Boston 15 : $3,300 113 $50.154 172 4152.065 196 $360.427 New York.. 120 40 '• 6', 698 48 19.357 66 53.640 16i 303.750 Philadelphia 147 7,085 43 8,094 IIS 45.235 133 107.912 178 323.378 Cleveland 83 ! 4.794 30 11.732 42 34.305 124 238.230 Richmond. 69 : 12,655 172 71,277 188 • 168' 133 229 406.930 Atlanta... is 1,290 145 22,715 115 45,311 149 121.380 249 452,317 Chicago 303 9,090 244 ;• 42.277 320 128,859 438 ! 357.019 426 1.125.156 St. Louis... 19 1 462 73 1 13,484 99 38.495 88 ! 64,917 160 334,442 Minneapolis 32 i 5.063 100 36,746 149 ! 102,686 173 269.509 Kansas Cit v 2 185 47 9,347 126 47,933 131 102.649 179 291.522 Dallas ." 8 391 20 ; 3,863 54 19,913 55 40,639 78 134,903 San Francisco 9 6-10 18 ! 2,982 24 8.423 43 34.859 113 214,092 Total 421 25,857 779 : 135,672 1,319 523,435 1,654 1,340,204 2,286 4,454.656 Per cent .02 ! .12 .47 1.21 4.01 Member banks' collateral notes , 1 i Over $2,500 to $5,000. Over 55,000 to $10,000. Over $10,000. j Total. Banks. Pieces. Amount. Pieces. Amount. Pieces. Amount. Pieces. Amount. Boston . 275 $1,236,759 115 $1,0-15.798 84 82. 892.926 970 85.741,429 New York 1,083 5,283.681 325 2,957,956 471 35,895.315 2,314 44,526.111 Philadelphia 144 635,353 38 314,998 23 3,660.364 824 5.102.419 Cleveland 142 561,212 58 475.094 t)0 2. 754,253 489 4.079,620 Richmond 238 1,009.598 115 989,998 50 lj 248', 418 1,061 3.907,009 Atlanta 205 861'. 700 103 833,921 81 2,207,718 1.060 4! 546'. 352 Chicago 766 3.444,565 349 3,182,350 290 11.459,186 2,936 19,748,502 St. Louis 351 1,657,852 169 1,5«l. 167 141 *', 893,928 1,100 8^ 585.747 Minneapolis 86 329.125 43 377,016 36 1.460,674 619 2^581,419 Kansas City... 180 791.899 50 422,954 42 1,443.305 757 3.109.594 Dallas.. 60 222,327 34 234.521 23 404,181 332 1,000,738 San Francisco . 389 1,817,512 178 1,459,224 161 4,438,731 935 7.976,463 Total. 3.919 17,851.583 1,577 13,874,997 1,462 72,758,999 13,397 110.965.403 Per cent 16.06 12.5 65.61 100.00 Member bank's collateral notes. 50 231,800 99 886,462 1:192 2,569,082,189 1.341 % 570,. 200.. 451 Bills discounted during the month of October, 1917 and 1916, and ttte 10 'months ending October, 1917 and 1916, distributed by classes. \ Member banks' collateral notes. Federal Reserve Bank i Secured by i c T e r p a t d an e c a e c s - . ' Com pa m pe o r d . ity d A is l c lo o t u h n e t r s. Total. ! Liberty bonds Otherwise i j or i c U a . t e S s . o c f e r in ti - f- j secured. • debtedness. ; Boston ; $2,457,700 I 83,586,840 $333,710 $5,407,719 $11,785,969 New York I 2,152,680,000 ! 185,687,000 1,121,773 43,404,338 ! 2,382,893,111 Philadelphia.. 3,002,500 8,714,811 184,701 $25,000 4,892,718 16,819,730 Cleveland 12,885,000 j 9,331,500 601,687 3,477,933 26,296,120 Richmond.... 1,449,500 j 19,745,000 214,403 186,650 3,505,956 25,101,509 Atlanta 4,744,000 I 7,683,000 417,228 1,146,633 2,982,491 16,973,352 Chicago 44,592,000 i 31,889,462 19,748,502 96,229,964 St. Louis 9,411,000 ; 7,875,000 299,981 8,203,177 25,871,747 Minneapolis... 5,076,900 ' 59,819 2,521,600 7,658,319 Kansas City.. 15,864,000 * *25,"i52,*334" 399,020 2,710,574 44,425,928 Dallas 5,750,250 4,910,654 109,270 951,468 11,721,642 San Francisco 4,562,000 2,850,000 700,669 218,619 7,057,175 15,388,463 Total, October, 1917 j 2,262,474,850 307,725,601 | 4,442,261 1,659,491 104,863,651 2,681,165,854 Total, October, 1916 2,076,302 414,900 2,921,100 6.450,598 11,862,900 Total, January-October, 1917 4,358,327,401 15,168,499 8,679,267 487,908,255 4,870,083,422 Total, January-October, 1916 3,487,152 3,256,000 14,949,500 104,557,748 126,250,400 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

978 FEDERAL RESERVE BULLETIN. DECEMBER 1,1817. Amounts of discounted paper, including member banks collateral notes, held by each Federal Reserve Bank on the last Friday in October, 1917, distributed by classes. [In thousands of dollars; i. e., 000 omitted.] Member banks' collateral notes. Commer- Banks. tu A ra g l r p ic a u p l e - r. Li p v a e p -s e t r o . ck ci d a p u l a s a p t n r e i d r a . l in-S b e L c o i u n b r d e e s d r t o y b r y Otherwise d A is ll c o o t u h n e t r s. Total. U.S. certif- secured. icates of indebtedness. Boston $6 $8,070 S629 31,523 310,873 New York 73 38,942 156,560 17,361 213,624 Philadelphia.. 40 6,269 1,257 2,676 10,242 Cleveland 12 4 4,479 2,160 2,905 38 9,598 Richmond 1,192 16 6,299 679 2,693 441 11,320 Atlanta 670 306 4,218 2,160 4,083 89 11,528 Chicago 2,221 40 16,794 21,993 11,125 52,173 St. Louis 154 156 10,217 5,642 5,525 25 I 21,719 Minneapolis.. 1,125 1,225 3,241 3,640 9,231 Kansas City... 320 2,096 1,764 7,587 11,997 | 23,764 Dallas 838 2,039 1,051 3,242 2,282 j 9,450 San^Francisco. 625 182 7,721 3,400 1,646 ; 13,574 W-y-" Total.... 7, 6,064 109,085 208,965 62,922 2,804 397,094 Percent 2.0 1.5 27.4 52.6 15.8 0.7 100.0 Distribution, by sizes, of bills bought in open market by all Federal Reserve Ba/nhs during October, 1917, and the 10 months ending r OOccttober, 1917 and 1916. To 35,000. To 510,000. To 825,000. To §50,000. Acceptances bought in open market. Pieces. Amount. Pieces. Amount. Pieces. Amount. ! Pieces. Amount. Banker's acceptances. 1,745 3,392,215 776 56,385,035 1,475 $28,622,639 461 820,117,296 Trade acceptances 40 149,648 46 396,595 29 499,253 7 234,608 Total, October, 1917. 1,785 3,541,863 6,781,630 1,504 29,121,892 20,351,904 Per cent 4.1 7.8 33.5 23.4 September, 1917 1,708 3,753,473 954 7,930,927 1,893 34,648,570 672 29,109.172 August, 1917 1,153 3,631,618 864 7.108,253 1,164 21,217,335 426 18,089,978 July, 1917 1,680 4,392.492 851 6', 097,592 1,355 26,495,822 256 10,722,807 Juno, 1917 2,297 6,0531419 1,497 11,774,481 2,641 46,144,288 793 34,140,652 Mav, 1917 1,305 3,571,384 890 7,024,753 1,580 27,835,025 442 18,681,746 April, 1917 748 1,589,086 270 2,147,380 647 13,231,092 257 11,003,120 March, 1917 3S9 876,506 175 1,381,029 363 6,970,406 171 7,185,125 February, 1917 819 2,175,639 777 (5,324,018 1,248 22,307,962 401 16,483,974 January^ 1917 390 1,023,210 483 1,706,009 300 5,238,206 152 6,898,412 Total, 10 months ending October, 1917. 12,274 30,608,690 7,583 58,270,132 ! 12,695 233,276,598 j 4,038 172,066,890 Total, 10 months ending October, 1916. 3,789 11,110,586 3,654 29,822,811 I 4,878 I 83,554,624 j 1,344 55,576,822 To 5100,000. Over 5100,000. Total. Per Acceptances bought in open market. cent. ! Pieces. Amount. Pieces. Amount. Pieces. Amount. Bankor's acceptances.. 239 819,650,679 42 $7,275,238 4,738 1885,443.102 98.3 Trade acceptances 3 170,976 125 »1,451', 080 1.7 Total, October, 1917.. 242 19,821,655 42 7,275,238 4,8 86,894,182 Percent.. 8.4 ! 100.0 September, 1917 279 23,317,006 10,287,318 5,559 109,046,466 August, 1917 180 15,008,823 7,066,795 3,837 72,122,802 July, 1917 152 12,643,409 6,511,943 4,328 60,864,065 June, 1917 1 306 26,300,940 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 I 2,047 41,312,591 March, 1917 ! 86 0,801,912 4,930,660 1,209 28,151,638 February, 1917 ! 180 15,273,481 8,012,105 3,474 70,637,179 January, 1917 1 48 3,891,515 1,859,768 1,384 20,617,180 Total, 10 months ending October, 1917 j 1,747 146,497,341 405 73,038,645 | 38,742 713,464,296 Total, 10 months ending October, 1916 566 47,868,141 229 42,743,391 14,460 270,676,375 1 Of the above amount, banker's acceptances totaling $71,275,629 were based on imports and exports and $14,167,473 on domestic trade transactions. 2 Of the above trade acceptances, $1,353,580 were drawn abroad on American importers and indorsed by foreign banks and §97,500 were based on domestic trade transactions. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

DKCEMRKU 1, 1917. FEDERAL RESEKVE BULLETIN. 979 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. Member iI Non member I ! Nonmcm- Private ! F b or a e n i k gn b ce o p u o t g p a h e n t n c i e n s c T ep o t t a a n l c a e c s - . banks. com tr p u a s n t i es. ba b r a n S k ta s. te banks. a b n r d a n a c g h e e n s - Total. market. 1915. Feb. 22 ! 893.000 $93,000 393,000 Apr. 5 1 3,653,000 37,820,000 $10,000 ."5110,000 1 11,593,000 11,593,000 May 3 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 9,960,000 9,960;000 July 3 4,342,000 5,267,000 161,000 9,770,000 9,770,000 Auk. 2 5,350,000 5,407,000 20,000 352,000 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 8,477,000 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 i 18,154,000 I 18.154,000 1916. Jan. 3... 15,494,000 7,160,000 362,000 822,000 i 23,838,000 23,838,000 Feb. 7.. 15.C.81.000 7.875,000 336,COO 1,456,000 ! • 25,349,000 8489,000 25,838,000 Mar. 6.. 17',] 82; 000 s; 670; 000 408,000 , 1,781,000 ! 28,041,000 462,000 28', 503,000 Apr. 3.. 21,000,000 13,573,000 473,000 ! 3,262,000 ; 38,308,000 722,000 39.030,000 Mayl.. 24,875,000 15,400,000 585,000 I 3,430,000 i 44,290,000 1,477,000 45; 767,000 June 5.. 24, (580.000 17.029,000 644,000 I 7,007,000 j 49,360,000 2,208,000 51,568,000 Julys.. 32,989', 000 IS, 921,000 471,000 11,830,000 ! 64.211,000 3,422,000 67,633,000 Aug. 7.. 39,(505,000 19,060.000 738.000 13,940,000 ! 73; 433,000 4,225.000 77,658,000 Sept. 4., 41.413,000 20,356', 000 726,000 12,491,000 ! 74,986,000 3,673,000 78,659,000 Oct. 2.. 37; 798,000 21,782,000 712,000 9; 944,000 ! 70,238,000 2,306,000 72.542,000 Nov. 6.. 37,770;000 29,474,000 1,014,000 12,147,000 ! 80,405,000 2,378,000 82; 783,000 Dec. 4.. 47,748,000 33,232,000 1,630,000 16.069,000 ! • 98,679,000 4,487,000 103,166,000 1917, I Jan .1 i 66,803,000 34,625,000 1,502.000 18,224.000 ' 121,154,000 4,585,000 125.739,000 Feb. 5 ! 50.361,000 23,511,000 972; 000 13,775', 000 I 8140,000 88,759; 000 4,041,000 92;;s;oo;ooo A J J J A M M A S S O O u u u U e e p u c c a a n l l p p K t y t r y g r y e . . . t t . . . . . 3 3 1 7 3 2 5 4 3 1 2 1 4 1 1 5 1 . 5 9 5 - . 1 . 6 I ! ! ! j | | 1 1 1 i 1 1 4 5 4 0 2 5 6 o 8 9 1 3 8 7 3 3 9 9 s 0 5 4 2 1 , , , ; ; . ; , , , , , 5 9 9 2 1 3 1 5 4 9 9 4 2 1 7 8 9 0 4 9 3 9 7 . 6 1 9 8 2 1 8 7 3 ' 2 7 2 1 ; , , , , , , , ; ; . , 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 3 2 2 1 3 4 3 3 2 1 1 0 2 3 7 9 0 3 3 8 8 4 5 , , . , , , , , , , , , 3 5 1 0 6 3 1 2 0 4 9 3 2 1 4 1 5 9 0 7 8 0 8 5 8 7 1 0 0 7 3 ' 7 6 7 6 S . , , , , , , , , , , i 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1 3 2 2 2 2 2 1 1 ' . , , ; , , , , , 2 0 6 5 3 4 3 3 5 3 1 8 3 9 8 6 7 3 3 8 1 0 9 4 6 0 9 4 7 1 3 7 4 2 3 0 , . , , , , , ; . , , , 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 2 2 1 1 3 2 2 1 2 2 2 1 9 0 1 8 6 0 1 4 1 2 1 8 ; . , , . , , , , , , , 0 5 0 8 7 0 1 1 9 7 0 1 8 8 8 3 8 7 3 1 3 0 8 7 2 1 3 0 2 7 7 8 1 8 6 7 ; . , , . , , , , , , , 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 ! : • I i J3 2 2 1 1 . 1 1 1 , , , , , , , , 3 2 2 1 2 8 3 3 0 4 3 5 0 9 3 5 8 0 4 6 8 7 2 4 0 4 9 3 6 5 5 9 7 1 9 , , , , , , , , , , , , 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1 1 1 1 j 1 1 1 1 1 8 8 0 7 4 1 8 7 6 7 6 4 9 2 7 8 7 8 4 9 1 3 9 0 ; . , , , * , , , , , . 8 0 3 9 9 7 7 1 1 5 6 8 3 2 4 9 7 7 8 4 7 4 3 9 7 6 9 3 1 3 5 5 1 0 7 4 , , , , , , . , , , , , 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 n 0 0 0 0 0 0 0 0 0 0 2 4 4 1 1 3 4 2 6 6 8 7 ' , , , , . , , , , ; , , 5 9 1 6 6 0 3 2 9 2 2 3 5 4 7 6 2 0 2 4 4 2 3 5 2 4 9 0 2 0 4 2 6 4 4 , , , , , , , ; , . 2 . 0 0 0 0 0 0 0 0 0 0 , 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1 1 1 1 1 1 1 1 1 1 8 9 1 2 8 4 6 5 8 8 8 7 3 0 0 1 9 3 8 4 4 0 7 ^ , , , , . , , , , , , 2 1 3 0 7 4 1 6 5 1 2 7 1 7 6 2 9 4 9 4 8 1 1 7 5 0 6 8 5 o 4 1 9 3 6 4 , , , , , . , , , , , , 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

980 FEDERAL BESERVE BULLETIN. DECKMBBU 1,1917. Amounts of hills discounted and acceptances and warrants bought by each Federal Reserve Bank during October, 1917, distributed by maturities. 15-day maturities. 30-day maturities. Banks. i .Discounts. ! Warrants. Total. Discounts. | Warrants. Total. i Boston 86,770,804 556,770,804 $770,204 861, 8831,629 New York 2,359,046,667 ! §336,151 2,359.382,818 3,359,466 3,016, 6,375,587 Philadelphia i 11,962,123 li;962,123 509,485 1,175, 1,684,876 Cleveland \ 22,775,905 21,964 22,797,869 949,270 i 890 1,840,209 Richmond i 21,490,550 263,965 21,754,515 713,285 ! 2.557, 3,270,684 Atlanta I 13,236,274 673,000 13,909,274 964,005 I '978, 1,942,062 Chicago • 80,684,929 80,684,929 3.841,465 i 3,841,465 St. Louis | 18.419,492 18,419,492 3'. 486,396 ! 3,486,396 Minneapolis ; o,120,615 111,000 5,231,615 '617,798 | 310,000 ' 927,798 Kansas City i 41.639,057 41,639,057 373,504 ! 373,504 Dallas..../ ! 10; 682,704 50.000 10,732,704 66', 742 i 1,400,000 ! 1,466,742 San Francisco I 9.609,799 17; 185 9,626,984 1,863,551 280,672 " | 2,144.22:? Total. 2,601,438,919 : 1,473,265 2.602,912,184 17,515,171 10,670,004 | 28,185,175 Percent 94.0 .-.! 1.0 | 60-day maturities. 90-day maturities. Banks Discounts. I Acceptances. Warrants. Total. Discounts. Acceptances. Warrants. Total. Boston j SI, 274,929 I 8725,915 i 82,000,844 52,389,172 j 84,219.460 86,608,632 New York.. 5,802,649 10,349,813 ! 8505,823 16,658,285 14,684,329 • 36,605; 010 51,289,339 Philadelphia | 716,249 i 540 876 ! 1,257,125 3,629,448 I 2,429,493 6.068,941 Cleveland. 1,467,251 | 1,357,963 | 2,825,214 1,100", 987 ! 4,865,740 5;966;727 Richmond 1,606,785 j 491.853 :... 2.098,638 1,276,167 i 1,507,500 2.783,667 Atlanta "I 1,590,045 i 862;500 ! 2,458,545 1,083,456 ! 957,002 2,185!420 Chicago 0,783,293 j 6, 783', 293 4,138,169 i 2,714,170 6,852,339 St. Louis 1,730,583 1.736; 583 2,186,082 i '173,796 2,359; 878 Minneapolis 1,110,637 115,000 1'. 255,637 606,235 i 621.405 Kansas City 826,044 14, 775 ' 840,819 1,260,034 15,760 1,27f>; 794 Dallas 303,531 2,821,632 3,125,163 337,863 ; 62S,865 960,728 San Francisco 1,923,702 510,129 2,433,891 1,971,127 : 297,825 2,208,952 Total 25,177,758 17,790,456 . 505,823 44,317,193 34,663,069 ! 54,414,021 I 170,132 j 89,217,822 Per cent 1.6 3.2 Over 90-day maturities. Total. Per cent. co D u i n s- t s. ; A a c n c c e e p s t . - r W an a i r s - . Total. r W an a t r s - . Total. ! ! c D ou is n - ts. A a c n c c e e p s t . - ; j r W an a ts r . - : ! Total. Boston S580,860 ; 8033,928 .181,214,788 | 811, 785,969 \$o,010,728 ! $17,426,697 i 67.6 32.4 100.0 New York S510,701 ! 510,701 |2,.382,893!ill !o0.307,095 ,016,52-1 12,434,216,730 I 97.9 2.1 100-0 C R P l h i e c i v h la e m l d a o e n n l d p d hia.. 1 2 2 4 , , , 4 7 7 2 2 0 2 5 7 i 2 8 4 2 0 1 5 0 9 , , , 0 0 4 6 0 2 0 0 0 ! i i . J . | ! 4 2 8 2 2 1 7 1 4 ; . , 8 7 7 4 2 6 5 2 7 ! j I ' 2 2 ! r 6 6 > 8 , , 2 . 1 1 ^ 9 0 6 ; , ,1 5 2 0 0 9 i I ! 5 h k ; ' 5 3 6 6 6 2 5 1 0 , . , 6 7 .1 6 1 8 6 7 0 10,000 i ! ! 2 3 3 1 0 3 , , , 3 7 6 9 2 5 4 2 7 , , , 9 7 2 1 8 2 0 6 0 j ! j 8 7 7 1 8 8 . . . 6 7 1 2 2 1 1 1 8 . . . 9 3 3 ; i 0.1 1 1 ] 0 0 0 0 0 0 . . . 0 0 0 Atlanta 93,572 ' .! 93,572 16,973;352 i 3,470,559 144,962 ; 20,588,873 82.4 16.9 .7 100. C Chicago 782,108 i 467,428 .1 1,249,536 96,229!964 ; 3;181,598 :.. | 99,411,562 96.8 3.2 100.0 St. Louis 43,194 • ,! 43,194 25; 87l!747 '' '173'. 796 I.. I 26.045,543 99.3 .7 ! 100.0 Minneapolis... 173,034 i .1 173; 034 I 7,658;319 r>;j6;ooo [ 15,170 ! 8; 209,489 I 93.3 6. 5 .2 100. 0 Kansas Citv... 327,289 ! I 327,289 ! 44,425,928 30,535 :.. .!' 44.456,463 i 99.9 .1 100.0 Dallas 330.802 : .: 330.802 ! 11,721.642 900,497 L. 16i622,139 70.5 29.5 100. C San Francisco. 20; 221 I ,j 2O',224 ; 15,388'463 105,811 '.. 16,494,274 93.3 6.7 100.0 Total. 2,370,937 ! 2,545,836 ; 510,701 : 5,427.474 ;2,681,165,854 186,894,182 i 1,186,656 12,769,246,692 96.8 3.2 ! ! 100.0 Percent ! i 0-2 I : ; j IOO.O j Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Disc EMBER, 1,1917. FEDERAL RESERVE BULLETIN. 981 Maturities of discounts, acceptances, and municipal warrarrfs held by each Federal Reserve Bank on Friday, Oct. £6, 1917. [In thousands of dollars; i. e., 000 omitted.] 1 to 15 days. 16 to 30 days. Banks. Accept- Accept- B c i o l u ls n d te is d - . b a o n u c g e h s t. M wa u r n r i a c n ip ts a . l Total. B co il u l n s t d e i d s . - b a o n u c g e h s t. M wa u r n r i a c n ip ts a . l Total. Boston 4,429 196 8,625 1,854 1,648 3,497 New York 186,251 199,917 5,056 9,258 14,314 Philadelphia... 5,294 9,287 632 1,380 2,012 Cleveland 6,426 11,930 488 3,823 4,311 Richmond 5,790 6,955 2,165 837 3,002 Atlanta 8,044 9,088 1,268 800 2,070 Chicago 34,656 37,265 7,475 185 7,660 St. Louis 14,593 16,182 2,193 396 2,589 Minneapolis... 5,132 5,972 1,097 897 1,994 Kansas'City... 20,623 21,531 891 304 1,195 Dallas 6,686 8,194 887 3,978 4,865 San Francisco. 8,146 9,245 2,401 1,977 4,378 Total. 306,070 38,121 344,191 26,407 25,478 51,887 Per cent 9.0 31 to 60 days. 61 to 90 days. Banks. B co il u ls n t d e i d s . - b A o a c n u c c g e e p h s t t - . M wa u r n r i a c n ip ts a . l Total. B co il u ls n t d e i d s . - A b a o c n u c c g e e p h s t t - . M wa u r n r i a c n ip ts a . l Total. Boston 2,615 13,673 16,288 1,975 4,534 6,509 New York 8.789 36,835 45,624 13,528 28,805 42,333 Philadelphia.. 840 4,162 5,002 3,467 3,822 7,299 Cleveland 1,952 5,711 7,668 731 3,063 3,801 Richmond 2,713 1,472 4,185 643 2,257 2,900 Atlanta 1,487 289 1,785 651 642 1,306 Chicago 5,618 1,356 6,974 3,656 3,565 7,221 St. Louis 3,893 382 4,275 1,009 61 1,070 Minneapolis... 1,975 50 2,025 892 10 902 K D a a n l s l a a s s . C .. i . t ; y .. . . . . . 1 1, } 1 1 1 8 7 1 2,3 2 6 5 1 3 1, , 2 4 0 7 6 8 6 37 3 4 7 6 4 3 2 7 0 San Francisco.. 2,116 902 3,018 873 24 897 Total. 34,296 67,218 14 101,528 28,436 46,783 76 75,285 Per cent ....! 17.7 13.1 Over 90 days. Total. Percentages. Banks. ccoouunnttecdd. j b A o ac u rci g ce h « ps t < t - |i ! * M r ) a al n u w t n S ai t xc " i- Total. B co il u l n s t d e i d s . - A b a o c n u c c g e e p h s t t - . p M a ra l u n n w t i s c a . i r - - Total. co B u di n i s l t - l e s d. b A a o c n u c c g e e p h s t t - . ; | p M r a a l u n w n t i a s c . r i - - Total, I Boston 10, 24,046 34,919 32.1 67.9 100.0 New York 21S3 88,564 302,188 70.7 29.3 I 100.0 Philadelphia 9 13,357 23,609 43.4 56.6 i 100.0 Cleveland 1 18,101 27,711 34.6 65.4 i 100.0 Richmond 9 1 5,731 17,051 66.4 33.6 I 100.0 Atlanta 76 131 207 2,775 155 14,456 79.7 19.2 I 1.1 100.0 Chicago 768 768 7,715 59,888 87.1 12.9 i 100.0 St. Louis 31 31 2,428 24,147 89.9 10.1 i 100.0 Minneapolis 135 135 1,787 11,028 83.7 16.2 I 100.0 Kansas City 432 432 1,237 25,001 95.1 4.9 i ..! 100.0 Dallas 386 23; 7,847 17,343 54.5 45.2 I 3 100.0 San Francisco 38 4,002 17,576 77.2 22.8 ! 100.0 Total. 1,885 131 2.016 397,094 177,590 233 574,917 Per cent .3 100.0 30.9 I. 100.0 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

982 FEDEBAL KESERVE BULLETIN* DECEMBER 1,1917. Total investment operations, exclusive of purchases of United States certificates of indebtedness, of each Federal Reserve Bank during the months of October, 1917 and 1916, and the 10 months ending Oct. SI, 1917 and 1916. Bills bought in open market. Municipal warrants. Bills discounted for Federal Reserve Banks. 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. acce T p r t a a d n e ces. Total. City. State. Allother. Total. PJoston , 811,785,969 579,994 §60,734 So,640,728 Now York 2,382,893,111 851,540 455,555 50,307,095 $1,016,524 $1,016,524 Philadelphia... 16,819,730 565,180 •1.505,180 810,000 ' 10,000 Cleveland 26,290,120 945,028 "416," 638' 7;361,666 Richmond 25,101.509 020,717 c,620,717 Atlanta 16,973', 352 470,559 3,470,559 11,910 8133,052 I 144,962 Chicago 96,229,964 181,598 3.181,598 St. Louis 25,871,747 173,796 173,796 Minneapolis — 7,658,319 536,000 536,000 "i5,'i70 Kansas City... 44,425,928 30,535 30,535 Dallas 11,721,642 j 900,497 4,900,497 San Francisco. 15,388,463 587,60S 518,153 1,105,811 Total, October, 1917 2,681,165,854 85,443,102 1,451,080 86,894,182 1,043,604 133,052 10,000 1,186,656 Total, October, 1916 11,862,900 39,195,000 1,699,100 40,894,700 10,030,300 2,000 235,200 10,267,500 Total, 10 months ending October, 1917.-!., 870,083,422590,487,615 22,976,681 713,464,296 15,645,355 135,092 681,498 16,461,945 Total, 10 months ending October, 1Q1G. 12(5,250,400 258,988.000 11,789,400 270,676,400 75,233,500 3,656,900 826,500 79,716,900 United States bonds and Treasury notes. Total investment operations. Federal Reserve Banks. 2 per cent. 13 per cent. 35 per cent. 4 per cent. T 1 r n - e o y a t e s e a u s r . ry Total. Oc 1 t 9 o 17 b . er, Oc 19 to 16 b . er, O 1 b 9 c e 1 t 7 r o , . - I i ! O 1 b c 9 e t 1 o r 0 - , . ! Per \ Per cent, jcent. Boston §17,426,697 82,899, 0.0 ! 4.6 New York 815,050 825,000 3955,000 I $995,650 ,435,212,380 16,640, 87.9 | 20.3 Philadelphia.. 21,394,910 7,409, .8 ! 11.8 Cleveland $2,100 100 405,000 j 408,200 34,005,986 5,676, 1.2 ! 8.9 Richmond 134,000 134,600 30,850,826 2,082, 1.1 i 4.2 C A St h t . l i c a L a n o g t u a o is - 1 1 , . 2 0 0 0 0 0 1,250 8,000 9 2 , , 0 45 0 0 0 9 2 2 9 0 6 , , , 4 5 0 2 9 1 0 1 5 , , , 5 3 5 0 2 4 2 3 3 5 5 3 , , , 3 1 0 3 4 0 1 7 4 , , , 3 . . 8 0 ! i S 8 5 . . . 1 8 5 M Ka i n n s n a e s a p C o i l t i y s . . . . . . 1,000 I. 10,000 1 1 0 , , 0 0 0 00 0 4 8 4 , , 2 4 1 6 0 6 , , 4 4 8 6 9 3 3 1 , , 2 7 1 0 0 2 , , X: 1 !! i 5 2. . 7 1 Dallas.....'.... 3,400 3,400 16,025,539 1,559, 2.5 Sanlfranoisco. 10,750 10,750 10,505,024 7,295, 11.5 Total, October, 1917 3,100 173,300 29,650 1,309,000 ! 1,575,050 2,770,821,742 100.0 i Total, October, 1916 62,000 5,060 13,282,100 ; 100.0 Total, 10 months ending 250,000 I 257,060 October, 1917 13,997,200 186,540 44,325,710 63,900 5,005,642,013 Total. 10 months ending 7,059,000 I 65,032,350 October, 1916 37,481,250 3,647,880 |. 4,153,000 522,225,830 300,000 45,582,130 United States securities held by each Federal Reserve Bank on Oct. SI, 1917, distributed by maturities. United States bonds with circulation privilcge. United States securities without circulation privilege. 3 l p o 11 e a 9J r n 11 S c 8 o . e f n t ] i j i 4 p l 1 o l e QH a r 9 n - z- c o1 o e . f nt 3 T p r n 1 e e - o a y r t s e e c u a s e . r r n y t l 1 p o 9 j „ P a 6 / n 1 n t . i 3 Y i L p o h e » a e r n n ' c • o y e ff nt L L 4 1 i p o b 9 e a p 4 e n 2 n e r . t t r o y d i I I t i i S i n i U t c d a n a n t e e e t i b s e s t s t s e e . c d o e d r f - - Total. Boston 8750 8529,000 82,19-1,000 $80,000 8492,000 83,295,750 New York | 50 j 850,000 I 1,255,500 4,493,000 1,532,750 825,000 111,581,000 18,937,300 Philadelphia j S100 549,200 2,548,000 1 100 • 577,000 3,075,400 Cleveland 6,400 | 467,200 ' 653," 060 "|$2," 378," 266" 414,800 3,271.000 2,020,450 4,406,000 15,023,710 Richmond j 915,100 j 237,000 1.909'000 395,000 3,559,200 Atlanta ! 6-10,600 j 21,000 16,366' I', 491,000 7,454,000 9,834,050 Chicago I 1,802,500 i 307,300 2,581.000 | 1,708,000 427,400 3,308,000 1,057.000 25,431,000 St. Louis ! 100 i 1,153,300 1,444,000 349' 000 4,026,400 Minneapolis j 323,050 j '"io'206' l' 199^ 180 ;" "266/256' 114,800 1,340,000 871,000 4,071,040 Kansas City.. 7,155,850 i 22,240 : 825,000 S38,500 1,784,000 i 120,000 11,001,040 Dallas 2,450,900 i 281.500 1,233,000 1,430,000 3,400 i 2,091,000 7,492,800 San Francisco.. 2,428,750 !. ...| 1,500,000 ' 3,270,000 7,215', 500 Total jlo, 78-1,050 jl, 412,000 j 7,503,840 j 5,177,450 6,526,400 126,832,000 29,650 |32,925,000 114,224,390 I Total United States bonds with circulation privilege, $29,937,940. Total United States securities without circulation privilege, 884,286,450. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

DECEMBER 1,1917. FEDERAL KESEEVE BULLETIN. 983 RESOURCES AND LIABILITIES OF FEDERAL RESERVE BANKS. Resources and liabilities of each Federal Reserve Bank and of the Federal Reserve Systeyn at close of business on Fridays, Oct. 26 to JSTov. 23, 1917. RESOURCES, jln thousands of dollars; i. c. 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 . - m R o ic n h d - . j I ia A n t t - a. c C a h g i o - . M ap i o n l n is e . - K C a i n t s y a . s Dallas. F c S i r s a a c n n o - . Total. Gold coin and certificates in vault: Oct. 26 27,5-16 j 281,218 17,623 21,657 6,219 6,175 35,270 i 4,772 17,878 i 5,448 12,225 25,082 401,113 Nov. 2 29,547 308.420 18,678 30,550 6,092 5,794 35.904 I 5,199 16,622 6,354 12.197 25'. 954 501,311 Nov. 9 33,251 309', 258 20,077 29,401 6,123 5)779 36)377 ! 5)299 15,060 5", 9~8~8" 12)206 28)581 507,403 Nov. 1G 39,946 321,188 20,576 30,647 6,203 5,799 35,076 i 5.426 14,069 5,607 12,238 30,017 526,792 Nov. 23 31,698 333,776 21,106 29,073 6,144 5,551 33,900 ! 5)362 14,234 3,988 12,531 32,682 530,045 Gold settlement fund: Oct. 26. 22,047 36,496 38,043 52,368 30,394 3,859 72,842 21,158 5,370 38,480 15,679 I 27,231 363,967 Nov. 2 19.687 111.398 29,941 39,138 38,751 3,650 52,958 19.801 4,580 20,846 17,059 I 20,706 378,514 Nov.9 i 12', 721 90)846 40,389 30,706 36,139 9,548 68.785 22)205 10.871 25,646 13,579 i 24,289 385,724 Nov. 16 11,104 67,140 37,232 45,419 35,240 9,411 67) 007 21,923 14)070 20,508 15.603 ' 19,053 303,710 Nov. 23 6,016 ! 28,666 40,511 50,490 40,417 13,545 72,007 25,640 15,894 30,443 27)504 ! 35,529 386,662 Gold with foreign agencies: Oct. 26..... 3,675 I 18,112 3.675 4,725 1,837 1,575 7,350 2,100 2,100 2,625 1,838 2,888 52,500 Nov. 2 3,675 i 18,112 3)675 4,725 1.837 1,575 7,350 2,100 2,100 2.625 1,838 2,888 52.500 Nov. 9 3.075 ! .18,112 3,675 4,725 1'. 837 1,575 7,350 j 2,100 2,100 2)625 1,838 2,888 52)500 Nov. 16 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 Nov. 23 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: Oct. 26 35.371 187,224 48.220 i 47,715 23,729 40.058 81,372 27,075 35,625 30.620 26,303 26,380 614,692 Nov. 2 37', 539 177.432 51,749 ; 44,223 28,614 39)027 74,371 30,059 32,491 30)314 26,485 30,129 602,433 Nov.9 36,182 177'. 146 49,785 j 47,014 32,061 36,904 86,231 33,375 29.477 30,287 27,772 30,020 616,254 Nov. 16 31,692 174;325 50,529 ! 46,192 31,997 39,892 98,474 38.359 29)353 30,209 27,757 31,127 629,906 Nov. 23 30,461 174,058 50,644| 18,121 31,940 43,851 81,692 38)847 29,325 30,186 29,039 35,784 023.948 Geld redemption fund: Oct. 26 1,000 5,000 950 12 715 540 391 768 393 517 818 I 30 11,164 Nov. 2 992 5,000 950 35 664 585 398 766 511 515 870 ! 31 11,317 Nov.9 1.000 5,000 950 21 639 667 411 702 594 51.5 89S ! 39 11,496 Nov. 16 l'.OOO 5.000 950 i 52 615 535 431 758 589 515 965 I 10 11,420 Nov. 23 r,ooo ! 5; 000 950 j 31 594 573 462 754 595 514 1,035 | 41 11,549 Legal tender notes, silver, etc. i Oct. 26.... '. 4,037 i 40.276 7C0 352 157 248 1.816 613 ! 322 45 493 | 387 i 49,506 Nov. 2 4,368 4i;134 873 482 179 281 1)609 695 321 69 522 211 I 50,744 Nov. 9 5,441 42,134 767 i 473 182 269 1,183 695 310 62 505 187 I 52,208 Nov. 16 5,046 42,366 858 • 500 193 282 1,499 606 315 59 i 588 213 I •52,525 Nov. 23 5,362 42,658 1,023 • 679 158 305 2,162 614 310 37 I 528 222 54,058 Total reserves: Oct. 26 93,676 508,326 109,2711126,829 68,051 52,455 199,Oil 56,'180 01,688 77,735 57,386 : 81,998 1.552,9-12 Nov. 2 95,808 661,496! 105,866 119,153 76,137 50,912 172,590 58.620 56,625 (30,723 58,970 ! 79', 9.191'. 590'. S19 Nov.9 92,270 642,496! 115,6435112.343 76,981 54,742 200,337 64)430 58,412 65,123 56,798 i 86)00-1 1'. 025) 5S5 Nov. 16 92;463 628,1311113,820 127)535 i 76,085 57,494 209,837 69,172 60,49(5 59.o23 58,989 | 83.308 1)036,853 Nov. 23 78,212 602,2701117,9091133,119 j 81,090 65,400 197,573 73,317 62,458 67)793 72,47o ! 107)146 1) 058,762 Bills discounted—members: Oct. 20 10,873 213,624 10,242 'i 9,598 I11,320 11,526 52,173 9,231 23,704 9,4"»0 .13.574 , 397.094 Nov. 2 11,995 277,754 11,321 i 12,630 !11,471 11,877 69,305 14.591 31,975 10,535 i15)030 ! 503)905 Nov. 9 11,488 298.963 9,287 14,223 I 9,086 12,320 63.584 13)450 35,024 10,211 10,370 I 510,154 Nov. 16 36,286 223'297 16,046 ! 25,386 I10,775 10,157 76.813 13,475 31,900 10,423 10,1.11 i 487,850 Nov. 23 37,574 351,111 22,914 j 30,149 I 16)023 12,053 97)805 10,262 33,122 8,375 18,080 j 056,002 Bills bought in open market: I Oct. 26 24,046 88,564 13.357 I 18,101 ! 5,731 2,775 7,715 1,781 1,237 i 7.847 4,002 : 177,590 Nov. 2 23,483 70.869 17)240 I 29,686 I 6,399 4,295 7,696 1,976 ' 5.947 7)407 8,938 180,012 Nov.9 28,742 24)518 26,190 ! 36,302 j 11,740 4,395 5) 700 11,357 5)340 11,595 8.769 ISI',001 Nov. 16 !28,437 31,220 25,859 i 34,444 I 12,191 5,595 ! 5,624 : 10)537 4,951 10,372 17)174 193,809 Nov. 23 j 30,234 50,340 25,604 ! 31,082 { 12,937 4,727 I 5,949 ; 9,044 4,530 10,818 •'16,848 209,905 United States Government j long-term securities: i i Oct. 26 ! 610 2,426 550 7,947 I 1,206 893 i 21,007 I 2.233 i 1,8008.853 3,972 i 2.519 ! 54,100 Nov. 2 | 610 2,302 550 7,697 i 1,361 589 ! 21,007 2)233 I 1)8608)851 3,972 I 2)519 ! 53,851 Nov.9 .1 610 2,273 550 7,097 I 1,348 889 21,007 I 2 233 I 1*, 86"'0"" 8,849 3,972 ! 2,455 ! 53,743 Nov. 16 ! tilO 2,044 55C 8,178 I 1,346 898 !! 21,007 I2)233 ; 1,8G0 8.849 3)972 j 2,455 ] 54,002 Unit N ed o v. 2 S 3 t ates Government \ ; 610 2.180 550 8,053 i I 1,311 i ii 21,007 i 2:233 1,860 8)849 i 3,972 ! 2,440 i 53,902 short- term socuri ties: ! Oct. 26 1 2,686 16,074 3,128 i 3.693 2,364 8,945 ; 4,948 1,793 ! 3,037 2,210 2,252 4,740 I 55,876 Nov. 2 | 2,686 6,074 !3)065 I 3) 737 2,364 9,250 1 4,000 1,793 i 2,183 2,210 2,802 4,987 I 45,211 Nov. 9 | 2,680 6)074 3,062 j 3,514 2,364 9,151 ' 3,585 1,793 ! 2,183 1.784 2,285 3,880 I 42,367 Nov. 16 ! 2,536 156,072 2,860 3,529 2,364 7,060 ! 3,404 1,693: 1,819 2)210 2,824 1,533 I 187,904 Nov. 23 2,456 26,122 2,858 ! 4,824 2,364 5,383 i 3,779 1,693 1,810 2,222 2,054 1,085 I 57,850 Municipal warrants: Oct. 26 10 i 155 ! 10 46 233 Nov. 2 1,017 101 157 25 46 1,207 Nov. 9 1)017 10 i 163 ! 25 46 1,273 Nov. 16 1,017 101 163 I 25 4(1 1^273 Nov. 23 1,017 44 i 278 j 25 46 1,422 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

984 FEDERAL RESERVE BULLETIN. DBCBMBJBR 1,1917. Resources and liabilities of each Federal Reserve Bank and of the Federal Reserve System at close of business on Fridays, Oct. 26 to Nov. 23, 1917—Continued. RESOURCES. [In thousands of dollars; i. e. 000 omitted.] B to o n s- . Y N o e r w k. Phila- | Clove- m R o ic n h d - . la A n t t - a. c C a h g i o - . Lo S u t. is. M ap i o n l n is a . - I K C an it s y a . s I Dallas. F c S i r s a a c n n o - . Total. Due from other Federal Reserve Banks, net: Oct. 25 3. Ill 6.497 11,269 2,036 ! 1,114 6, 002 2,512 2,263 !6,395 ' 6,896 Nov.2 2; 504 5; 365 1,788 228 I 1,749 6,851 4,666 11,006 6,756 728 I 8,489 114,385 Nov. 9 2,520 6,426 1,683 980 1,380 241 I 8,995 1 1,725 Nov. 16 17,452 4,641 10,390 3,189 I 1,973 6,150 2,981 1,923 9,988 286 !17,772 117,838 Nov.23 9,514 2,831 i 171 10,109 2,001 896 1 11,872 Uncollected items: Oct. 26 18,598 55,216 32,885 18,199 17,893 19,266 37,151 19,873 10,017 17,551 15,629 19,399 281,077 Nov.2 17,183 81,000 34,364 17,737 20,116 17,505 42,027 19,084 14,695 16,102 19,544 18,544 317,901 Nov. 9 15,983 65,570 34,058 17,039 17,700 16,379 35,548 17,416 10,351 16,803 13,400 11,549 271,796 Nov. 16 30,708 80,127 47,898 36,454 30,409 22,079 70,775 27,067 18,330 35,901 15,026 13,770 428,544 Nov.23 16,222 60,973 30,636 21,706 20,613 17,121 44,022 16,898 11,690 24,410 17,277 20,957 302,525 Five per cent redemption fund against Federal Reserve Bank notes: Oct. 26 400 137 537 Nov.2 400 137 537 Nov.9 400 137 537 Nov.16 400 137 537 Nov.23 400 137 537 All other resources: Oct. 26 100 :. 345 524 122 63 1,354 Nov.2 148 !. 426 670 127 217 1,588 Nov.9 62 i. 1,547 797 170 301 112 2,989 Nov.16 141 139 I 2,069 404 3,736 Nov.23 35 100 !. 1,470 599 109 3,293 Total resources: L Oct. 26 153,600 944,230 175,940 1195,648 108,691 97,229 1322,035 111,079 90.666 135,445 99,104 132,696 2,528,365 Nov.2 154,269 1,100,512 177,781 J132,446 118,076 96,782 1323,536 113,713 104,231 132,964 104,328 1139,243 2,721,534 Nov. 0 !lol,779 '1 ,0"4•3" ,4—31 188,800 1197,556 119.719 98,101 1329,761 111,103 99.421 134,873 98,986 138,146 2.697,170 Nov.16 1208,492 1,121,908 211,684 !245,928 136)500 105,558 393,708 129,861 109,350 153,722 102,479 152,123 3,012,406 Nov. 23. 165,308 1,103,527 200,515 1231,776 134,973 106,730 380,244 120,731 100,730 150,021 116,353 168,161 2,956,130 LIABILITIES. Capital paid in: Oct. 26 5,467 15,236 5,273 6,460 3,477 2,595 8,048 3,305 2,579 3,372 2,783 4,034 Nov.2 5,467 16,733 5,284 6,478 3,477 2,595 8,047 3,443 2,579 3,372 2,783 4,033 64,291 Nov.9 5,701 16,848 5,584 6,743 3,567 2,635 8,055 3,443 2,581 3,372 2,783 4,033 65,345 Nov.16 5,701 17,675 5,590 6,743 3,585 2,635 8,549 3,444 2,581 3,372 2,783 4,033 66,691 Nov.23 5,701 18,028 5,590 6,751 3,585 2,665 8,603 3,444 2,581 3,372 2,783 4,033 67,136 Government deposits: Oct. 26 12,823 15,591 8,313 15,157 8,535 5,866 17,545 5,013 10,746 8,748 14,196 132,221 Nov.2 6,528 49,819 6,965 9,899 15,120 4,869 18,224 7,245 15,139 8,806 12,875 20,423 175,912 Nov.9 359 7,303 2,039 5,895 5,042 3,199 1,636 7,085 4,420 6,227 12,130 59,198 Nov.16 142,256 3,485 19,267 46,017 23,872 4,673 25,367 14,438 14,559 11,393 3,324 10,236 218,887 Nov. 23 1 7,292 31,292 4,227 28,563 | 12,220 3,196 40,674 1,705 7,132 12,753 11,048 196,411 Due to members—reserve ac- I count: I Oct.26 !74,592 528,035 73,634 | 98,754 40,799 32,226 156,951 46,537 39,587 67,612 38,854 66,742 1,264,323 Nov.2 i 78,523 632,111 72,868 ; 98,447 40,553 32,328 157,244 47,814 42,028 66,858 39,785 63,464 1,372,023 Nov.9 1f7,177 633,364 80,769 1103,998 45,104 31,083 165,717 48,844 41,753 71,251 40,578 67,344 1,406,982 Nov.16 87,647 657,133 83,991 1101,442 j 44,324 33,498 183,756 48,562 42,917 74,968 43,450 78,810 1,480,498 Nov.23 78,715 657,097 82,623 1104,785 | 42,25734,673 159,931 46,682 41,271 46,395 62,330 1,426,648 Due to nonmember banks— clearing account: Oct. 26 25,287 390 :'. 100 5,749 39 2 3,761 35,335 Nov.2... 14,409 609 I. 81 5,178 18 10 2 4,003 24,310 Nov. 9 24,362 590 L 137 I 44,334499 19 7 2 4,400 33;866 Nov.16 11,331 129 I. 72 I 5,911 46 36 2 3,398 20,925 Nov. 23 10,973 78 j. 485 | 5,984 482 36 2 4,251 22,291 Collection items: Oct. 26 12,243 32,537 28,693 13,709 12,831 10,895 I 19,945 12,960 4,209 10,962 6,105 9,403 174,492 Nov.2 12,494 49,351 29,072 13,680 14,692 8,885 I 19,330 14,129 4,516 10,027 5,664 9,971 191,811 Nov.9 12,516 44,251 30,349 12,094 13,797 8,222 2*"3,*1 0"9*"13,964 4,746 9,977 5,117 8,880 187,022 Nov.16 18,420 51,196 31,934 20,940 15,971 10,870 38,889 16,073 5,252 13,695 6,451 10,746 240,437 Nov. 23 14,311 52,094 27,285 16,815 16,469 9,137 27; 807 13,592 4,614 12,162 6,915 13,968 215,169 Due to other Federal Reserve Banks—net: Oct. 26 36,426 1,572 Nov.2 36,347 Nov.9 3,020 3,498 6,304 55 I 1,6 Nov.16 "58,* 907' Nov.23 *i,*086 7,093 9,063 3,' 894" I."!!".*!!" 1,8 * Difference between net amounts due from and net amounts due to other Federal Reserve Banks. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

R 1, 1917. JEDEEAL RESERVE BULLETIN. 985 Resources and liabilities of each Federal Reserve Banh and of the Federal Reserve System at close of business on Fridays, Get. 26 to Nov. 23, 1917—Continued. LIABILITIES—Continued. [In thousands of dollars; i. e., 000 omitted.] B to o n s- . York. i i i P p d h h e i i l s l a - . - ; : ' O hi le n v d e . - ; j m R o ic n h d - . ! j la A n t t - a. c C a h g i- o. L S ou t. is. K C an it s y a . s j ! M ap i o n l n is e . - Dallas. F c S i r s a a c n n o - . Total. Federal Reserve notes in actual j I circulation: Oct. 26 i 47,932 288,798 ! 59,613 60,89842,896 45,547 112,144 j 38,582 39,239 34,583 42,614 34,580 847,506 Nov. 2 ; 50,644 299,263 ! 63,155 ; 63,07444,071 48,024 115,494 ! 41,06439,959 35,683 43,221 37,349 881,001 Nov. 9 i 52,347 314,807 j 66.076 : 67,87646,969 50,927 123,573 i 43,197 43,249 37,851 44,281 41,359 932,512 Nov. 16 i 53,805 319,481 j 70:429 • 70,43248,748 53,8.10 131,236 j 47,298 44,005 42,018 46,471 44,852 972,585 N ov. 23 j 57,604 331,167 73;151 74;687 51.379 56,574 137,024 I 50,932 45,096 43,599 47,409 47,270 1,015,892 Federal Reserve Bank notes in | circulation, net liability: j Oct. 26 i 8,000 I. 8,000 Nov. 2 ' 8,000 !. 8,000 Nov. 9 : 8 000 !. 8,000 Nov. 16 8,000 i. 8,000 Nov. 23 ! 8,000 I. 8,000 All other liabilities, including foreign Government credits: Oct. 26 2,320 • 414 ! ISO 153 : 81 168 ! 3,859 Nov. 2 2,479 . 437 j 259 163 19 216 i 4,186 Nov. 9 2,496 • 485 j 360 115 130 4,245- Nov. 16 2,700 : 473 i 225 274 L 48 4,383 Nov. 23 2,876 i 546 ! 87 221 244 •. 4,583 Total liabilities: N N NN Oc o o oo t v v vv . . . .. 2 1 9 2 1 6 66. 2 1 2 1 1 00 5 5 5 88 4 1 3 ,, , , , 44 7 2 6 99 7 6 0 22 9 9 0 j I 1 ; l 1 l 1 , , , 0 9 1 1 1 4 2 4 0 2 3 1 4 0 1 , , , , 9 4 9 2 5 —0 3 1 3 8 1 2 0 1 1 1 2" 1 1 " 7 1 8 7 1 5 8 7 , , , , "6 9 8 7 8" 4 0 8 '4 0 0 1 2 1 "1 1 " 4 9 3 9 2 5 5 7 ', , , ,9 4 6 5 2 4 4 5 8 6 8 6 j 1 1 1 1 1 1 1 3 1 8 9 0 6 8 8 , , , ,5 , 7 0 0 0 6 1 7 7 0 9 9 6 6 1 ::1 9 9 9 0 7 6 8 5 , , , , 2 1 7 5 0 2 8 5 1 9 2 8 3 3 3 3 2 2 2 9 3 2 9 3 , , , , 7 5 0 7 6 3 0 3 1 6 8 5 1 1 1 1 1 1 1 2 1 1 3 9 , , , , 0 7 8 1 7 6 1 0 9 1 3 3 1 1 9 9 0 0 0 9 9 4 , , , , 6 4 3 2 6 2 5 3 6 1 0 1 [ 1 | '1 1 1 1 3 5 3 3 5 3 4 2 , , , , 4 7 8 9 2 4 7 6 2 5 3 4 I 1 1 1 9 9 0 0 9 8 2 4 , , , , 1 9 4 3 0 8 7 2 4 8 9 8 1 1 1 1 3 3 3 5 9 2 8 2 , , , , 2 6 1 1 4 9 4 2 3 6 6 3 i I . ! 3 2 2 2 , , , , 0 6 7 5 1 9 2 2 2 7 1 8 , , , , 4 1 5 3 0 7 3 6 6 0 4 5 Nov. 23 |165,308 11,103,527 200,515 ;231,776 ; - 1 ~ 34 " ,9 7 — 3 j:106,730 380,244 120,731 100,730 150,021 116,353 168,161 i 2,956,130 FEDERAL RESERVE NOTES. Federal Reserve note account of each Federal Reserve Banh at close of business on Fridays, Oct. 26 to Nov. 23, 1917. In thousands of dollars; i. e., 000's omitted.] Rich- At- Minne- Kansas San mond. lanta. Louis. apolis. City. Dallas. Fran- Total. cisco. Federal Ileserve notes received from agent—net: Oct. 26 51,251 315,224 63,320 64,215 44,313 ! 47,069 116,632 41,322 40,421 37,580 42,906 39,134 903,387 Nov. 2 54,419 324,232 66,939 68,723 45,403 49,509 120,831 44,306 41,287 39,793 43,759 44,083 941,284 Nov. 9 55,652 342,946 70,355 71,514 48,941 52,300 129,431 45,372 44,473 42,456 44,570 47,374 995,384 Nov. 16 57,612 349,525 I 73,959 I 73,69250,267 55,158 139,174 49,856 45,349 45,582 46,915 51,531 1,038,620 Nov. 23 61,381 377,878 j 77,474 | 76,62153,811 57,758 147,592 54,844 46,321 46,842 48,077 53,688 1,102,287 Federal Reserve notes held by bank: Oct. 26 3,319 26,426 I 3,707 3,217 1,417 1,522 4,488 2,740 1,182 2,997 232 4,574 55,881 Nov. 2 3,775 24,969 j 3,784 3.049 1,332 ! 1,485 5,337 3,242 1,328 4,110 538 6,734 00.283 Nov. 9 3,305 28,139 i 4,279 3) 638 1,972 ! 1,373 5 858 2,175 1,224 4,605 289 6.015 62)872 Nov. 10 3,807 30,044 I 3,530 3,260 1,519 | 1,348 7,938 2,558 1,344 3,504 444 6)679 06,085 Nov. 23 3,777 •16,711 i 4,323 1)934 2,432 ! 1,184 10,508 3,912 1,225 3,243 608 6,418 80,395 Federal Reserve notes m actual circulation: Oct. 26 47,932 288,79S 59,613 60,998 42,896 | 45,547 112,144 i 39,239 34,583 42,614 34,560 847,500 Nov. 2 50.644 299,263 63,155 63,074 44,071 I 48,024 115,4G4 41,064 j 39,959 35,683 43,221 37,349 881,001 Nov. 9 521347 314,807 86,076 67,876 46,969 I 50,927 123,573 43,197 43,249 37,851 44,281 41,359 932,512 Nov. 16 53,805 319,481 70,429 70,432 48,748 i 53,810 131,236i 47,298! 44,005 42,018 40,471 44,852 972,585 Nov. 23 57,004 331,167 73,151 74,687 51,379 ! 56,574 137,024! 50,932| 45,096 43,599 47,409 Gold deposited with or to credit 01 Federal Reserve Agent: I i Oct. 26 35,371 187.224 48,220 47,715 i 28,729 ! 40,058 81,372I 27,075 35,625 30,020 26,303 26,380 614,692 Nov. 2 37,539 177.132 51) 749 44,223 | 23,6K = 39,027 74,371i 30,059 32,491 30,314 26,485 30.129 602,433 IN OV. S 36,182 177) MS ; 4J-) 785 47,014 ! 32,061 ; 36,904 86,231 33,375 i 29,477 30,287 27,772 30)020 616,254 Nov. 16 31,692 174.225 : 50,529 46)192 : 31,997 ; 39,892 98,474 38,359 1 29>353 30,209 27,757 31.127 029,906 Nov.23 30,461 174,058 150,044 48,121 ; 31.940 j 43,851 81,692i 38,847 ! 29,325 30,180 29,039 |3 53)57)87484 623,948 j-gper delivered to Federal Reserve Agcni: Oct. 26 35,783 14,258 ! 8,886 7,380 17,287 i 13,076 303,704 Nov. 2 47,019 : 14,259 I 14,991 9,501 17,942 I 14,385 365,107 Xov. 9 43,788 12,036 I 22.076 12,462 21,806 19:796 439,202 Xov. 16 25,949 180,842 : 23,43c i 27)584 ! 22,966 I 15,29441,321 : 11,526 I 19)430 15,634 20,795 26)405 431,182 Nov.23 30,957 234,763 ! 26)854 j 28,549 : 29,645 • 14,655 6(3,530 • 16,016 : 16,475 16,903 19,164 31,870 532,411 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

988 FEDERAL RESERVE BULLETIN, DECEMBER 1, 1917. Federal Reserve note account of each Federal Reserve Agent at close of business on Fridays, Oct. 26 to Nov. 23, 1917. [In thousands of dollars; i. e., 000's omitted.] Y N o e r w k. m R o ic n h d - . la A n t t - a. Lo S u t. is. M ap i o n l n is e . - ! ! K C a i n t s y a . s ; |Dallas. c F S i r s a a c n n o - . Total. i I FEDERAL RESERVE NOTES. Received from Comptroller: Oct. 26 79,880 532,760 92,440 !83,000 60,100 59,980 ! 151,440 55,840 57,280 ! 56,720 63,980 44,460 1,337,680 Nov. 2 80,880 541,160 92.440 !84,600 81,900 64,980 j 155,320 55,840 57,280 j 58,720 64,180 49,460 1,366,760 NOT. 9 80,880 560,960 99,240 .84,600 65,600 ! 68; 300 ! 170^80 57,780 59,480 ! 61,720 64.180 52,820 1,424,040 Nov. 16 80,880 574,960 101.960 i97,880 68,700 ! 69,109 •' 184,120 61,380 59,480 I 64,740 64', 180 57,220 1,484,600 Nov. 23 88,320 590,480 109/180 ! 69,700 i 72,280 ! 191.720 61,480 j 66,740 67,540 59,420 1,540,720 Returned to Comptroller: Oct. 26 15,029 108,016 14,080 ; 7,845 14,107 j 9,801 ! 4,908 I 7,468 8,589 i 10,460 ! 11; 294 5,326 214,903 Nov. 2 15,061 108,808 14,961 7,937 14.317 ! 9,881 [ 5,229 i7,484 8,703 j 10,847 ! 11,401 5,377 220,006 Nov. 9 15,828 109,094 15,045 ••8,146 U. 439 i 10,030 ! 5,709 !7,918 8,717 i 10,884 i 11,800 5,446 222,856 Nov. 16 15,868 111,915 15,861 ! 8,248 14; 513 i 10,092 i 5,766 i 7.934 8,841 ! 11,163 j 11,615 5,689 ! 227,505 Nov. 23 16, G19 112,182 15,946 8,319 11,669 10,132 5,828 7.945 9.069 ! 11,198 i 11,653 5,732 j229,293 Chargeable to Federal Reserve Agent: Oct. 26 6-4,651 428,74.4 78,360 76,155 45,993 I50,179 146,532 ! 48,372 48,711 I 46,280 52.686 39,134 1,122,777 Nov. 2 65,819 432,352 77,479 76,863 47,583 I55,099 150,091 i 48,356 48,577 47,873 | 52'. 779 44,083 1,146,754 Nov. 9 65,052 451,866 84,195 I 76,454 51,161 '56,270 164,771 49',•8 ~82" 50,763 50,836 i 52', 580 47,374 1,201,184 Nov.16 65,012 463,045 86,099 ! 89,632 54,187 59,008 178,354 53,446 5"0", 6"3~9~ 53,577 52,565 51,531 1,257,095 Nov. 23 71,701 478,298 93,534 i 89,561 55,031 62,148 185', 892 57,734 52,411 5555,554422 5555,888877 53,688 1,311,427 In hands of Federal Reserve Agent: Oct. 26 13,400 111,520 15,040 10,940 1,680 3,110 29,900 ; 7,050 8,290 8,680 ! 9,780 219,390 Nov.2 11,400; 108,120 10,540 9,940 '2,180 5,590 29,280 ! 4,050 7,290 9,020 205,470 Nov.9 9,400i 108,920 13,840 4,940 .2,220 3,970 , 35,340 ! 4,490 6,290 8,010 205,800 Nov.16 7,400! 113,520 12,140 15,940 I 3,850 39,180 i 3,590 5,290 7,995 5,650 218,475 Nov. 23 10,320 i 100,420 16,060 ; 12,940 = 1,2204,390 .38,300 I 6,090 8,700 7,810 209,140 Issued to Federal Reserve Bank, less amount returned to Federal Reserve Agent for redemption: Oct. 26 51,251 : 315,224 63,320 j 64,215 44,313 47, C 118,632 41,322 40,421 37,580 i 42,906 39,134 903,387 Nov.2 54,419 i 324,232 66,939 ; 66,723 i 45,403 j 49,509120,831 44,306 41,287 39,793 ! 44,083 941,284 Nov.9 55,652i 342,946 70,355 ; 71,514 ! 48,941 ! 52,300 129,431 45,372 44,473 42,456 44,570 47,374 995,384 Nov.16 57,612 I 349,525 73,959 j 73,692 i 50,267 I 55,158 139,174 49,856 45,349 45,582 46,915 51,531 1,038,620 Nov. 23 61,381 : 377,878 77,474 I 76,621 j 53,811 i 57.758147.592 54,844 46,321 46,842 48,077 1,102,287 Collateral held as security for outstanding notes: Gold coin and certificates on hand—• Oct. 26 30,599 i 177,082 4,220 19,321 3,579 ! 2,513 13,102 2,270 ! 14,480 267,166 Nov.2 32,799 ! 167,920 4,220 10,883 3,578 2,513 13,102 I 14,480 249,495 Nov.9 31,509 : 157,920 4,220 13,341 3,604 I 2,513 13,102 14,480 250,689 Nov.16 27,060 165,460 4,220 12,592 3,604 ! 2,512 13,102 14,480 243,030 Nov. 23 25,859 i 165,400 4,220 14,275 2,512 j 13,102 14,080 243,111 In gold redemption fund— Oct. 26 2,772 I 10,142 3,361 3,394 729 2,509 ! 444 ! 1,502 ! 2,023 1,990 2,349 1,989 33,204 Nov.2 2,740 | 9,512 3,480 3,340 614 2,429 : 398 ! 1,488 i 1,889 1,954 2,331 1,938 32,111 Nov.9 2,673 ', 9,226 3,673 561 2,280 I 332 ! 1,757 j 1,875 1,927 2,318 1,869 32,187 Nov.16 2,632 • 8,885 3,600 497 2,218 i 275 2,042 ! 1,751 1,849 2,403 1,826 31,843 Nov. 23 2,602 8,598 3,800 3,846 440 3,178 ! 213 2,030 1,723 1,826 2,185 1,783 32,524 With Federal Reserve Board— Oct. 26 2,000 ! 40,839 25,000 28,000 33,970 80,928 23,060 ! 20,500 26,360 I 9,474 24,391 314,322 Nov.2 2,000 ! 44,049 30,000 28,000 33,020 73,973 26,060 ; 17,500 28,360 ! 9,674 28,191 320,827 Nov.9 2,000 • 41,889 30,000 31,500 31,020 85,899 29,105 14,500 28,380 I 10,974 28,151 333,378 Nov.16 2,000 i 42,424 30,000 31,500 34,070 98,199 33,805 14,500 28,380 1 10,874 29,301 355,033 Nov. 23 2,000 ! 42,621 30,000 31,500 37,070 81,479 34,305 14,500 28,360 12,474 34,001 348,313 Commercial and bank paper, required minimum—1 Oct. 26 15,880 128,000 15,100 j 16,500 15,584 7,011 35,260 14,247 I 4,796 6,960 16,603 12,754 288,695 Nov.2 16,880 146,800 15,190 I 22,500 16,789 10,482 46,460 =14,247 8,796 9,479 17,274 13,954 338,851 Nov.9 19,470 165,800 20,570 ! 24,500 16,880 15,396 43,200 !11,997 i14,996 12,169 16,798 17,354 379,130 Nov.16 25,920 175,200 23,430 ! 27,500 18,270 15,266 I 40,700 i11,497 '15,998 15,373 19,158 20,404 408,714 Nov23 30,920 203,820 26,830 ; 28,500 21,871 13,907 ! 65,900 15,997 16,996 16,656 19,038 17,904 478,339 Total— Oct. 26 51,251 315,221 63,320 i 64,215 44,313. j 47,069 i 116,632 ,41,322 ! 40,421 37,580 42,906 39,134 903,387 Nov.2 54,419 324,232 66,939 ! 66,723 45,403' ! 49,509 i 120,831 4i4,306 i 41,287 39,793 43,759 44,083 941,284 Nov.9 55,652 342,946 70,355 • 71,514 48,941 I 52,300 \ 129,431 45,372 I 44,473 42,458 44,570 47,374 995,384 Nov.16 57,612 349,525 73,959 ! 73,692 50,267 I 55,158 ! 139,174 49,856 45,349 45,582 46,915 51,531 1,038,620 Nov. 23 61,381 377,878 77,474 i 76,621 53,811 ! 57,758 j 147,592 ; 54.844 i 46.321 46,842 48,077 1,102,287 '<• For actual amounts see item "Paper delivered to Federal Reserve Agent" on p. 985. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

DECEMBER 1,1917. FEDEKAL RESERVE BTJLLEIIls. 987 EARNINGS INVESTMENTS OF FEDERAL .RESERVE BANKS. Average amounts of earning assets held by each Federal Reserve Bank during October, 191.7, earnings from each class of earning and annual rates of earnings on the basis of October, 1917, returns'. Average balances for the month of the several classes of earning assets. Batiks. d m is e c B m o i u l b n l e s t r e s d . , ' Bi m l i l n s a o b rk p o e e u n t g . ht Un se it c e u d r i S tie ta s t . es >.M wa u r n r i a c n ip ts a . l Total. Boston S12,437,992 $24,080,653 83,295,750 i. 339,814,395 New York 148,441,362 81,873,716 17,298,199 3131,165 ! 247,744,442 Philadelphia.., 9,958,904 15,298,910 3,740,400 7,419 | 29,005,633 Cleveland 10,977,699 20,148,591 13,474,613 i 12,192 44,611,095 Richmond 12,512,358 5,181,221 3,860,614 i. 21,554,193 Atlanta 9,668;476 2,323,311 8,467,247 ! 70,195 j 20,535,139 Chicago 42,165,165 8,446,702 27,523,052 \. 78,134,919 St. Louis 18,693,029 3,429,396 4.161,465 :. 26,283,890 Minneapolis 8,319,100 2,482,800 4,352,800 ! 11,500 j 15,166,200 Kansas City... 20,337,478 2,245,478 11,171,187 i. 33,754,143 Dallas....:.... 7,964,720 7,314,505 6,301,516 I "46,'265* | 21,627,006 San Francisco.. 12,295,108 5,856,875 | 7,161,113 !- 25,312,894 Total. 313,771,389 178,679,958 ! 110,807,956 ; 284,646 603,543,949 Earnings from— Calculated annual rates of earning from— Banks, Bills dis- Bills United Muni- Bills dis-j Bills United Municounted, bought States cipal counted,! bought States cipal mem- in open secur- war- Total. mem- I in open secur- war- Total. bers. market. ities. rants. bers. ! market. ities. rants. j Per cent. Per cent. Per cent. Per cent. Per cent. Boston 842,016 $73,218 89,185 $124, 3.85 3.47 3.03 3.56 New York 377,336 237,876 49,445 664, 3.09 3.53 3.47 2.6 3.29 Philadelphia 31,328 43,065 9,738 84, 3.70 3.31 3.06 4.06 3.41 Cleveland 34,795 56,422 33,351 124, 3.73 3.29 2.91 4.62 3.29 Richmond 41,834 15,121 9,248 66, 3.94 3.44 2.82 3.62 Atlanta 32,765 7,008 25,900 260 65, 3.86 3.44 3.48 3.89 3.66 Chicago.. „ 128,224 23,788 74,750 226, 3.60 3.32 3.20 3.43 St. Louis. 60,545 9,432 9,855 79, 3.79 3.24 2.80 3.58 Minneapolis 30,791 6,492 10,111 48 47, 4.38 3.08 2.75 4.89 3.68 Kansas City . , 6,845 22,846 98, 3.97 3.29 2.41 3.41 Dallas ) 31,988 19,629 13,947 "io9 65, 4.82 3.22 2.68 4.14 3.65 San Francisco 42,507 17,467 19,619 79, 4.07 3.51 3.23 3.70 Total | 922,777 516,363 j 287,996 858 1,727,994 3.47 3.40 3.06 3.54 3.37 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

988 FEDEEAL RESEKVE BULLETIN". DECEMBB& 1, 1917. GOLD IMPORTS AND EXPORTS. Gold imports and exports into and from, the United States, [In thousands of dollars; i. e., 000 omitted.] Weekending— Total corre- Total since sponding Jan. 1, period Oct. 19, Oct, 26, Nov. 2, ! Nov. 9, i Nov. 16, 1917. during 1917. 1917. 1917. 1937. 1917. 1916. IKPOBTS. Ore and base bullion 535 169 247 : 192 | 13,988 11,721 United States mint or assay office bars. 114 4,009 Bullion, refined '- "653" 1,168 361 i 328 ! 462 391,046 361,274 United States coin 32 326 i 24 i 53,692 3,119 Foreign coin 12 "35" 90,875 119,486 Total 1,199 ! 1,381 934 577 549,715 499,609 EXPORTS. Domestic: Ore and base bullion 31 210 258 United States mint or assay office bars. 1 : 46,594 13,736 Bullion, refined 1,707 1,466 ! 503 : 117 38,900 7,003 Coin 1)334 437 i 538 ; 1,140 269,572 71,319 Total.. 3,041 1,903 ! 1,042 i 1.2 697 355,276 92,316 Foreign: Bullion, reiined. 31 1,458 Coin 585 38 j 35 : 44 7,076 19,831 Total 5S5 38 35 63 44 7,107 21,289 Total exports. 1,941 1,077 2,351 ! 741 113,605 Excess of gold imports over exports since Jan. 1,1917, §187,332. Excess of gold imports over exports since Aug. 1, 1914, $1,056,094. DISCOUNT RATES. Discount rates of each Federal Reserve Bank approved by the Federal Reserve Board up to Dec. 4, 1917. Maturities. Discounts. Trade acceptances. Secured by U. S. certificates of indebtedness or Liberty Loan W d it a h y in s, 15 . t A ur g a r l i c a u n l d - bonds. i in m b c e a l m u n d k b i s e n ' r g i : ; 1 d 6 a t y o s 6 . 0 61 d a t o v s 9 . 0 liv o p e v a - e p s r t e o 9 r c 0 k W da i y th s, i n i n 1 - 5 j | in l c d t l o a u y S s s i O v , e. ! j i in 6 c 1 d l a u to y s i s 9 v , 0 e. co n l o la t t e e s r . a l ' days. m el e u m di b n e g r : | 1 d 6 a t y o s . 90 banks' i collateral j notes. 'Jos ton ^ j 4 New York 3 '• f Philadelphia... 3$ \ Cleveland 4 Bichmond 8! 4 Atlanta 4 Chicago 3-V i 4 St. Louis 4" ! 4 Minneapolis.... 4 Kansas City.... 1! 4 Dallas 4 San Francisco., 3i j 4 Nct;e 1.—Rase lor. acceptances purchased in open market, 2£ to 4 per cent, except for San Francisco, whose rate ranges from 2%%o 4& per cent. Note 2.—Rates for commodity'paper have been merged with, those for commercial paper of corresponding maturities. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

INDEX TO VOLUME 3, Page. Page, Abrasion of gold coin caused by USB O! coin-counting Acceptances—Continued. machines ". 440,930 State laws affecting bank acceptances, abstract Acceptances: of 529-533 Acceptance of drafts with documents attached . 765 Trade- Advertising space, acceptances based on 114,116 Addresses on 9,10,243-245 Allied purchasing commissions, drafts drawn Amounts discounted by Federal Reserve for purpose of financing sale of goods to 878 Banks, statements showing 61. Applications to accept up to 100 per cent, reso- 139, 221, 317,408,486, 565,637, 716, 814,902, 977 lution of Board regarding 658 Bills payable with exchange and collection Bankers' acceptances— charges, negotiability of 830 Drawn against shipment of goods from a Conference of National Credit Men's Assocorporation to its branch or agent 690 ciation held in New York for discus- Growth in use of 5,6,350,664 sion of 243 Regulations of Board regarding 540,541 Form of 378 Report of committee of Federal Reserve Growth of the trade acceptance business. 157,657 Agents on 6 Inquiry by Board into use of, by business Bank's own acceptance, purchase of 28,691 houses ." 657 Bills of exchange— Report of committee of Federal Reserve Drawn against actually existing value 195 agents on promoting use of 8 Indorsement on ." 457 Regulation of the Board regarding., 540, 541 Payable with interest, negotiability of.... 200 Trust receipts as security tor acceptance trans- Regulation of the Board regarding 539, 541 action 881 Bullion and coin, bills drawn against 29 Warehouse receipts issued independent of the Chart showing amount held by Federal Reserve borrower 30 Banks, 1915-16 56 Accounting plan submitted by Federal Reserve Demand and sight bills, presentation for pay- Board and Federal Trade Commission 21, 270 ment 31 Act, Federal Reserve. (See Federal Reserve Act.) Differential as to 28 Acts passed by Congress: Distribution of, by sizes, maturities, etc 63,141, Bondissues. 248, 345,749 222, 319,412,487, 565, 641, 717, 815, 816,905, 977 Permitting the issuance of national-bank notes Drafts or bills of exchange drawn for the pur- of small denominations 837 pose of creating dollar exchange, regulation Trading with enemv 851-860 of Board regarding 542 War revenue acts. .1 248, 345, 749, 868-877 Drafts or bills of exchange drawn against ship- (See also Federal Reserve Act, amendments to.) ment of goods or secured by warehouse receipts, regulations ol" Board regarding.... 542 Advertisements of "clearing'' members 879 Draft drawn by purchaser of goods and secured Advertising space, acceptances based on 114,113 by bill of lading. 380 Advisory committee of member banks, status of. Drafts drawn on or before 90 days after sight.. 949 under section 8 of Clayton Act 118 Drafts payable on or before a certain date, eligi- Advisory Council. (See Federal Advisory Council.) bility of, for discount. 291 Agencies and branches. (See Branch agency; Drafts payable with interest, negotiability of.. 200 Branch banks; Foreign branches.) Drawn to"finance future importation of goods.. 527 Agricultural paper : 114, 540, 616, 890 Growing out of importation or exportation of Method of classifying 114 Regulation of the Board regarding 549 goods 28 . Statements showing amounts held by Federal Growth of the bank acceptance business 5, I Reserve Banks 221, 6,350,664 | Limitations imposed by section 5200, II. S., and 317, 408,486, 565, 638, 717, 814, 902, 973 section 13 of Federal Reserve act 28, Aiken, Alfred L., report by, summarizing operation 193,286,528, 696,879,881 of clearing and collection system in the Boston List of banks granted authority to accept up to district - - - 162 100 per cent 859, 746,839, 941 Aliens, enemy, instructions of Board to Federal Member bank's own acceptances, purchase of.. 28,691 Reserve Banks relating to transactions of Ameri- Place of payment of 289, 379 can banks with 431, 655 Regulations of Board regarding 539-542 (See also Trading with the enemy.) Shipment of goods from a corporation to its Allied purchasing commissions, drafts drawn for branch or agent, eligibility of acceptance 950 purpose of financing sale of goods to 878 drawn against 690 Allied Governments, loans made bv the United Stamp tax on 950 States to, April-September, 1917 731 989 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

§90 FEDEBAL RESERVE BULLETIN. DECEMBER 1,1917. Amendments to Federal Reserve Act. (See Federal Branches of Federal Reserve Banks: Reserve Act, amendments to.) Branch at Baltimore, decision deferred 440 American Bankers Association: By laws for 586,935 Offering services in connection with bond issue. 438 Directors chosen for branches at Omaha and Resolution urging amendments to State laws Spokane 586 permitting deposit of reserves of trust com- Established at Spokane, Y/ash., and Omaha, panies with Federal Reserve Banks 335 Nebr '. 586 American Trust & Savings Bank, Birmingham, Ala., New plan for establishment of 923 statement of. regarding membership in system 370 Proposed establishment of, in Portland, Seattle, Annual report (1916) of the Comptroller of the Cur- and Spokane 339 rency, synopsis of 172 Proposed establishment of, in Pittsburgh and Assets of Federal Reserve Banks, changes in, Janu- Cincinnati 923 ary-September, 1917 758 Branches, foreign, of national banks: Chart showing 759 Not regarded as independent corporations 198 Attorney General, opinions by: Real estate loans by 952 Construing section 8 of Clayton Act regarding British short-time Treasury bills, statement of Secinterlocking directorates as affecting State- retary of the Treasury regarding 652 bank members 744 Broadway Trust Co., New York City, statement of, Income tax on dividends made payable in regarding membership in system 360 Liberty bonds 601 Bullion and coin, acceptances against 29 Austria-Hungary: Business conditions throughout the Federal Re- National debt of, since outbreak of war 18 serve districts 33-56, War loans raised by 349 119-134, 202-219, 293-315, 381-403,460-482, 551- Baltimore, establishment of branch bank in, 561, 620-633, 698-714, 796-811, 883-899, 958-975 deferred 440 By-laws for branches of Federal Reserve Banks.. 586,935 Bank failures during past 3 years compared with Cable transfers, comparative rates to principal neupreceding 33 years 939 tral places in Europe 582. 683 Bank of England: Canadian short-term credit, statement issued by Foreign agency established with 5 , Secretary of the Treasury regarding 603, 652 Statements showing condition of.234, 329, 500, 681, 943 Capital stock of Federal Reserve Banks: Bank of Eufaula, Eufaula, Ala., statement of, Payment of stock subscription pending appliregarding membership in system 365 cation for membership 287 Bank of France: Regulation of Board regarding increase or de- Branch agency established with 175 crease of 548 Statements showing condition of .234, 329, 500, 681,943 Surrender of, by liquidating bank 457 Bank of Italy, statement showing condition of 681 Tax on, opinion by judge of United States Bank of Japan, statement showing condition of.... 682 district court of Ohio regarding 955 Bank of Leweilen, Leweilen, Nebr., statement of, Transfer of stock to a national bank acquiring regarding membership in system 367 assets of a liquidated bank 199 Bank of Montclair, Montclair, N. J., statement of, Cattle, eligibility of paper secured by loans on 378, regarding membership in system 356 690,763 Bank of Netherlands, statement showing condition Cattle raisers, letter of Board regarding interest of 681 rates on loans to 659 Bank of Spain, statement showing condition of 682 Central State Bank, Dallas, Tex., statement of, re- Bank of Wisconsin, Madison, Wis., statement of, garding membership in system 364 regarding membership in system 362 Central Trust Co. of Illinois, Chicago, 111., statement Bankers' acceptances. (See Acceptances, Bankers'.) of, regarding membership in system . 368 v Belgium, loans made to, by the United States, April- Certificates of indebtedness. (See Treasury certifi- September, 1917 731 cates of indebtedness.) Belligerent nations, national indebtedness of 10-19 Certificates, war savings. (See War savings certifi- Bills of exchange: cates.) Drawn against actually existing value 195 Charters issued to national banks. (See National Indorsement on 457 banks, charters to.) Payable with interest, negotiability of 200 Charts: Regulation of the Board regarding 539, 541 Annual and monthly price of silver and value Bill of lading: of pure silver in a silver dollar 844, 845 Draft drawn by purchaser of goods and secured Assets of Federal Reserve Banks, changes in, by bill of lading 380 January-September, 1917 759 Drafts for collection 114 Clearing-house operations, 1914-1917; also check Bonds of Federal reserve agents and assistants collections of Federal Reserve Banks, 1916-17 635 decreased 615 Commercial paper, acceptances, and other in- Bonds secured by real estate as investment by a vestments held by Federal Reserve Banks, national bank 456 1915-16 56 Bonds, United States. (See United States bonds; Course of dollar and sterling exchange on prin- Liberty bonds.) cipal European neutral places 688,689 Branch agency at Memphis, Tenn., report on 168 Deposit liabilities, reserves held in vault and Branch agencies, foreign, establishment of: with Federal Reserve Banks, and reserve Bank of England 5 percentages of national banks, 1914-1916. -. - 232 Bank of France 175 Deposits of Federal Reserve Banks, movement Philippine National Bank 239 of, during 1917.--.- 849 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

DECEMEEB 1,1917. INDEX TO VOLUME 991 Charts—Continued. Commercial failures throughout the United States: Exchange rates in belligerent, neutral, and By months 19, silver-standard countries 408 113,167,267,374,440,520, 604, 677, 747,864, 940 Federal Reserve note circulation, movement In 1916....' 113 of, during 1917 849 Commercial paper: Federal Reserve notes issued and cover of gold Amounts discounted by Federal Reserve Banks, and paper held by Federal Reserve Agents. 610 statements showing 57-66,135-144. Gold holdings of Treasury, national banks, 220-225, 316-321, 407-411,485-490. 563-567^ Federal Reserve .Banks, and Federal Reserve 636-644, 715-721, 812-819, 900-909, 976-982 Agents, 1914-1916 233 Amounts discounted for 3 months ending— Gold reserve of principal European banks of March, 1917 409 issue, 1913-1916 7 332 June, 1917 639 Money in circulation, 1914-1917 563 September, 1917 903 Note circulation of principal European banks of Amounts held by Federal Reserve Banks each issue, 1913-1916 333 month, statements showing 62,140, Principal changes in condition of European 221,317,408,486,565, 638.717,814,902,978 banks since outbreak of war 944,945 Cattle paper 378,690.763 Reserve and net deposits of Federal Reserve Chart showing amounts held by Federal Reserve Banks, 1915 and 1916 56 Banks, 1915-16 '. 56 Reserves of Federal Reserve Banks, movement Discount of paper for use in trading ixi United of, during 1917. 848 States bonds or notes 158 Reserves of national banks, 1915-1917 484 Equity exchange, paper of 379 Silver, movement in price of 483, 484 Fifteen-day notes of member banks, renewal Error in numbering charts 925 of 765 Treasury certificates, first nine issues of, rela- Participation certificate, rediscount of 949 tive contributions of the several Federal Re- Public-service corporation paper, [eligibility serve districts 846 of 949 Check clearing and collection: Short-term paper advocated 733,739 Advertisements of "clearing" members 879 Short-term paper, renewal of 879 Amendment to Federal Reserve Act regarding, Standardizing, resolution of Portland. Oreg.. interpretation of 657,660 clearing-house banks regarding 930 Attitude of a country banker on the exchange Commercial Trust & Savings Bank, Joliet, 111., question 740 Checks payable in exchange not authorized... 763 statement of, regarding membership in system... 361 Circular letter of Federal Reserve Bank of New Commissioner of Internal Revenue, rulings of: York in connection with collection of matur- Federal Reserve Banks not subject to tax upon ing notes and bills 743 charges for telephone, telegraph, and express Clearing-house operations, 1914-1917; also check service , 931 collections of Federal Reserve Banks, 1916-17 634 Tax on income from Liberty bonds 459,930 Chart showing 635 Tax on promissory notes 950 Collection of maturing notes and bills... 658,661, 743 Commodity paper: Circular of New York Federal Reserve Amounts discounted by Federal Reserve Banks, Bank regarding 743 statements showing 61,139, Operation of the system 80 221, 317, 408, 486, 565, 637, 716, 814,902,977 In the Boston district 162 Regulation of the Board regarding rediscount- Regulation of the Board regarding 549 ing of 540 Report of committee of governors on plan for Commonwealth Trust Co., Boston, Mass., stateimmediate availability of drafts 78 ment of, regarding membership in system 362 Summary of transactions, by months 6, Comptroller of the Currency: il5,171,268,354,455, 524, 613, 680,762, 841. 948 Annual report of, synopsis of 172 Christmas gifts, substitution of war-savings certifi- Call for reports of condition of national banks, cates for gold coin for use as 931, 951 changes in 604 Circulars and regulations of the Federal Reserve Condition of national banks as shown by ca v lls Board. (See Regulations.) of 161, 372, 665 Citizens State Bank, Memphis, Tenn., statement of, regarding membership in system 371 Corn Exchange Bank, New York City, statement of, regarding membership in system . .^ 359 Clayton Act: Counsel of Federal Reserve Board, opinions of. Opinion of Attorney General regarding interlocking directorates as a,ffecting State bank (See Law department.) members 744 Coupons on United States bonds, instructions for Permission granted by Board to serve as director handling 938 under, is continuing and good until revoked. 763 Currency: Substantial competition within meaning of.... 878 Custody of gold, lawful money, and Federal Clearing of checks. (See Check clearing and collec- Reserve notes held by Federal Reserve tion.) Agents 691 Coin, bullion, and currency, regulations governing National-bank notes of small denominations, export of 736-739 act authorizing issue of 837 Coin-counting machines, use of, discouraged ^ 440,930 National-bank notes and Federal Reserve notes Collateral notes of member banks, amounts dis- issued and redeemed during year 667,941 counted by Federal Reserve Banks, statements Regulations governing export of 736-739 showing 61,139, Shipment of 615 221. 317,408,486, 565, 637,716,814,902,977 Silver, monthly movement in price of 842 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

992 FEDERAL RESERVE BULLETIN.. , 1917. Page. Page. Delaware, laws of, authorizing national banks to Employees of Federal Reserve Banks: exercise trust powers 697 Exemptions from military service not sanc- Denmark, National Bank of Copenhagen, state- tioned by Board 591 ment showing condition of 082 Group insurance covering 28 Department of Agriculture, tabulated reports by, on Enemies, alien, instructions of Board to Federal credit, needs of farmers..' '. 937 Reserve Banks relating to transactions of Deposits: American banks with 431, 655 Chart showing deposits of Federal Reserve (See also Trading with the enemy.) Banks during years 1915-16 56 England. (See United Kingdom.) Federal land bank deposits with Federal Re- Examination of national banks, payment for 374 serve Banks 379, 881 Examination of State banks, instructions to Federal Government— Reserve Agents in connection with applications Banks not required to maintain reserves for membership 592-594 against 458 Examiners, national-bank. (See National-bank ex- Deduction of, in determining amount aminers.) against which reserves must be carried.. 692 j Exchange rates in foreign countries 156, Held by Federal Reserve Banks 847-850 328,405,576,582,683 Chart showing . 849 Chart showing 406 Nonmember banks' deposits,rulings regarding. 617,951 Executive orders: Statement of Secretary of the Treasury regarding Exportation of coin, bullion, and currency.. 736-739 nonconfiscation of 931 Regulations for carrying out provisions of the Withdrawal of, by foreigners 154 trading with the enemy act 860-863 Description of Federal Reserve districts 668 Expenses of Federal Reserve Banks. (See Earnings Directors of branch banks at Spokane and Omaha, and expenses.) appointment of 586 Expenses of Federal Reserve Board. (See Federal Directors of Federal Reserve Banks: Reserve Board, expenses of.) Classes A and B, election of 7,8 Export licenses in the foreign trade: Instructions regarding 742 Export license lists. .583-584, 672-675,755-757,864-868 Class C, appointment of, for year 1917 7 Forms of application 585,674-676 List of, whose terms expire Dec. 31, 1917 743 Executive order defining rules for carrying out Term of office 290 provisions of law 582,672 Directors of national banks, loans to, under section Exports council. Executive order creating 582 22 as amended 614,695, 763,929 Exports of coin, bullion, and currency, regulations Discount, method of computing 951 governing 738-739 Discount operations of the Federal Reserve Banks, Failures: statements showing 57-66,135-144, Bank, during past 3 years compared with pre- 220-225, 316-321, 407-411, 485-490, 563-567, ceding 33 years... .* 939 636-644, 715-721, 812-819, 900-909, 976-982 Commercial. (See Commercial failures.) Discount rates: Advance in, advised by Board 922 Farm land: Establishment of rate for short-term notes se- Loans on improved 613 cured by Liberty bonds 425,429 Regulations of the Board regarding loans on... 548 In effect, by months 74,152, (See also Real estate.) 231, 327,421,496, 575, 650, 728, 825, 916, 988 Farmers, reports tabulated by Department of Agri- Revision and standardization of 235,241 culture on credit needs of 937 Dividends: Federal Advisory Council: Declared by Federal Reserve Banks 4, 507 Meetings of 340, 92.1 Rights of liquidated national bank to accrued.. 117 Recommendations of, on amendments to act. 106-109 Dollar exchange: Federal land banks, deposit of funds of, in Federal Drafts drawn for purpose of creating, regulation Reserve Banks..'. 379, 881 of Board regarding T 542 Federal Reserve Act: Rates in European countries 156, 582, 683 Amendments to— Drafts: Act as signed by President 511-518 Federal Reserve. (See Federal Reserve drafts.) Amendments re State bank membership Payable on or before a certain date, eligibility remtroduced in Congress *. 336 of, for discount 291 Check clearing and collection, interpreta- Immediate availability of drafts at par, report tion of amendment regarding 657,660 of committee of governors on plan for 78 Comparative Senate and House bills as in- Drafts, notes, and bills of exchange: troduced in February, 1917 177-187 Regulations of the Board regarding rediscount Senate and House reports 188-192 of... ... 539,541 Effect of proposed amendment to section 19 u Earmarking" of gold for foreign account 733 of act regarding reserves 109,285 Earnings and expenses of Federal Reserve Banks: Hardwick amendment relating to check For year 1916 89-93 clearing, interpretation of 660 For 6 months ending June 30, 1917 605-609 Letter of Board regarding new reserve re- Earnings on investments of Federal Reserve Banks, quirements 508 statements showing 73,151, No action taken by Sixty-fourth Congress.. 235 230, 326,420,495, 574, 649, 727, 824, 915, 987 Proposed amendment authorizing banking Election of directors of Federal Reserve Banks. corporations to do a foreign banking busi- (;SW'JDirectors.) ness 450 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

DKCBMBBR 1,1917. INDEX TO VOLUME 3. 998 Federal Reserve Act—Continued. Page. Federal Reserve Banks—Continued. Page- Amendments to—Continued. New form of weekly statement 506 Recommendations of Federal Advisory New York Federal Reserve Bank, letter of, Council on 106-109 with respect to banking cooperation in con- Reprint of bill as adopted by the House and trol of gold supply 659 Senate 1 441-449 Profit and loss account of 92 Section 22, interpretation of 614,694 Relation of, to Subtreasuries, letter of Secretary Submitted to Congress bv Board in Decem- of Treasury regarding 110-112 ber, 1918 ." 98-106 Stock in, transfer of, to a national bank acquir- Synopsis of amendments as passed 501-503, ing assets of a liquidated bank 199 509-511 Federal Reserve Board: Text of amendments as passed 511-518 Approval of plan for immediate availability of Litigation involving constitutionality of sec- drafts at par 78 tion 11 (k) '. 32 Collaboration with Federal Trade Commission Section 22, interpretation of 30,614,694 on accounting plan 21,270 Synopsis of amendments as oassed 501-503, Conference with Federal Reserve Agents 4 509-511 Employees of, exemption from military service. 591 Federal Reserve Agents: Expenses of, assessment for— Bonds of, decreased 615 Jan.-June 23,24 Conferences with Board 4 July-Dec 525,526 Gold and paper held by, against issue of Federal Harding, Hon. W. P. G., redesignated as Reserve notes '..". 610 governor 659 Joint custody with Federal Reserve Banks of Instructions regarding new reserve requiregold, lawful money, and Federal Reserve ments under amendments to act 508 notes '. 691 instructions to Federal Reserve Banks regard- Report of committee on bankers' acceptances.. 6 ing transactions with enemy aliens 431,655 Report of committee on promoting use of trade Receipts and disbursements of, for year 1916 ... 87,88 acceptances *. 8 Rediscounting privileges granted to non- Federal Reserve Agents' fund, summary of trans- member banks by, for use in meeting deactions under 27, 97, mands caused by subscriptions to Liberty 176,269,354,455,524, 612,680, 761, 841,948 loan 426,430 Federal Reserve Banks: Regulations issued by. (See Regulations of the Agency at Memphis, Term., report on 168 Federal Reserve Board.) Assets of, changes in, January-September, 1917. 758 Resolution regarding applications to accept up Assistance rendered in floating the Liberty loan. 497, to 100 per cent of capital and surplus 658 577, 580, 588 United States bonds, resolution regarding Branch agencies, foreign— quarterly allotment of 5 Bank of England 5 Warburg, Hon. P. M redesignated as vice M Bank of France 175 governor 659 Philippine National Bank 239 Federal Reserve Bulletin: Branch banks— January 1-74 Branch at Baltimore, decision deferred 440 February 75-152 By-laws for 586,935 March 153-234 Directors chosen for branches at Omaha and April 235-334 Spokane 586 May 335-422 Established at Spokane, Wash,, and June 423-496 Omaha, Nebr 586 July 497-576 Proposed establishment of, in Portland, August 577-650 Seattle, and Spokane 339 September 651-728 Proposed establishment of, in Pittsburgh October 729-826 and Cincinnati 1 923 November 827-916 Capital stock of. (See Capital stock.) December 917-1000 Condition of, compared with principal foreign Bound copies of 158 banks ~. 681 Federal Reserve districts: Deposits held by 847-850 Counties in divided States 668 Chart showing 849 Description of 668 Deposits of Federal land banks with 379, 881 Population of 668 Deposits by nonmember banks in 617 Federal Reserve drafts: Directors of. (See Directors of Federal Reserve Forms of 349 Banks.) Instructions regarding use of 337-349,440,591 Dividends declared -. 4,507 Postponement of date on which plan was to be- Earnings and expenses of— come effective 440 For year 1916 89-93 Federal Reserve notes: For 6 months ending June 30, 1917 605-609 Amount in circulation during 1917 847-850 Employees of, exemption of, from military Chart showing 849 service 591 Amount issued during 1917 and cover of gold Furniture and equipment, etc., cost of 93,608 and paper held by Federal Reserve Agents.. 610 Insurance, group, covering employees of 28 Chart showing 610 Joint custody, with Federal Reserve Agent, of Amount issued and redeemed during year... 667,941 gold, lawful money, and Federal Reserve Cost of unissued * 93,609 notes 691 Distribution of, to mints and subtreasuries-. 155,237 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

994 FEDERAL RESERVE BULLETIN". DECEMBER 1,1917. Page. "Page. Federal Reserve notes—Continued. Foreign branches of national banks: Federal Reserve note account of each Federal Not regarded as independent corporations 198 Reserve Bank and agent each week--o9,147. 22$, Real estate loans by 952 324,418, 492, 572 647, 725, 822, 912, 985 Foreign exchange rates * 156, 328, 405, 576 Increase in cost of r 743 Chart showing 406 Interdistrict movement of 648, 914 Foreign Governments, loans made by the United Note-Issuing capacity of Federal Reserve Banks 1.55 States to, from Apr. 25 to Sept. 20, 1917 731 Paper drawn for purpose of trading in Govern- Foreign nations, public debt of 10-19 ment obligations, eligibility -as collateral for Foreign securities: issue of 45?) Investments in _ 2, 82, 236, 239 Plan for forwarding unfit notes to Washington Address of Gov. Harding at Boston refor redemption 82, 242 garding 2 Substitution of collateral, letter of 13card re- Letter to a national bank outlining policy garding 351 of Board on 82 Unfit notes, shipment of, to Washington for Foreign war loans raised by belligerent countries. 349, 351 redemption -' 82, 242 Foreigners, withdrawing of bank deposits by 154 Use of note ernbloni on stat m ionery not per- Forms: missible 191 Export license 585, 674-676 " Federal Reserve Svstem and the War," article by Federal Reserve drafts 349 Hon. W. P. G.-Havding 588 Trade acceptance 378 Fort Scott State Bank, Fort Scott, Kans., statement Federal Reserve System: of, regarding membership in system 366 Private banks, membership of 093 France:" Statements by State banks and trust companies Bank of France, statements showing condition when joinin-:; 355, 596, 667, 834 of '. 234, 329, 500, 681,943 Views oil Texas banker regarding operation of Branch agency of Federal Reserve Banks estabsystem i 59 lished at Paris 175 VieVs oi" 32 State banks regarding advantages Loans made by the United States to, Aprilof membershi p in 355-372 September, 1917 '.... 731 Federal Trade Commission, collaboration with National debt of 11-13 Board on accounting plan 2 i, 270 War loans raised by 349 "Federal," use of the word, as part of title of member bank 615 Franking privilege in correspondence relating to bond issue 439 Fiduciary powers: Georgia, law passed by Legislature of, authorizing Laws passed authorizing national banks to national banks to exercise trust powers 767 exercise trust powers— Gorman-American Bank, Minneapolis, Minn., state- Delaware 528 merit of, regarding membership in system 357 Georgia 767 Germany: Washington p 697 Amounts subscribed to fourth and fifth war List of national banks granted fiduciary powers. 20, loans 351 115,167, 267, 375, 440, 507, 604, 678, 746, 889, 941 National debt of 14-18 Litigation involving constitutionality of section Statements showing condition of German 11 (k) of act ... /. .* 32, 254, 534 Reichsbank ." 234, 329, 500, 681,946 Argument of counsel before Supreme War loans raised by 349, 351 Court of the United States ." 254 Gold: Decision of Supreme Court 534 Abrasion of coin caused by use of coin-counting Regulations of Board regarding granting of machines 440, 930 trust powers to national banks 1... 545 Control of supply oi' 1, 2, 659 States in which national banks mav exorcise, Cooperation of State banks in New York with under section 11 (k) of act .". 30, 528, 697, 7o7 respect to control of 659 First Guaranty State Bank, Pittsburg, Tex., state- ''Earmarking" of gold for foreign account 733 ment of, regarding membership in system 371 Imports and exports of 71, First State Bank, '"Bonham, Tex., statement of, 149, 229, 327, 422, 496, 575, 650. 728, 825, 916, 988 regarding membership in system - 364 Regulations governing export of 736-739 First State Bank. Dallas, Tex", statement of, regard- Use of gold coin for Christmas gifts discouraged 931,951 ing membership in system 356 Shipments of, to foreign countries 655 First State Bank, Hamlin, Tex., statement of, Gold settlement fund: regarding membership in system 389 Audit of 611 Food administrator, suggestions as to interest rates Change in operation of fund caused by amendto cattle raisers .' 659 ment to act 521 Foreign agencies, establishment of: Circular letter issued by Treasurer's office re- Bank of England 5 garding change in operation of fund 522 Bank of France 175 Expense of operation 94 Philippine National Bank 239 Question as to extension of fund 238 Foreign banks: Summavv of transactions under 25. Comparative statement showing condition of 95,175, 268, 353,454, 524, 611, 678, 760, 840,947 Federal Reserve Banks and leading central Government deposits: banks of issue 681 Banks not required to maintain reserves against. 458 Statements showing condition of principal Deduction of, in determining amount against European banks of issue 234,329. 500, 681,942 which reserves must be carried 692 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

DF.CKMBHR 1, 1017. JTSTD.KX TO VOLUME 3. 995 Page. Page. Governors of Federal Reserve Bauks: Informal rulings of the Federal Reserve Board—Con. Meetings of. 7. :M7. 921 Clayton Ac:t— Report of committee on plan for immediate Permission granted by Board to serve? as availability of drafts '. 78 director under, is continuing and £oo(.l Great Britain. (See United K/ingdom.) viiitil revoked 763 Guardian Trust & Savings Bank. Toledo, Ohio. iSii bstanlial compei-ition within meaning of. 878 statement of, rc3ga.rdi.ng memborehi.p in system :>(•}•••! ('u'-reiicy, shipment of, to cover reserves 6"J5 Harding. Hon. W. F. G.: Cnsf.ody' of gold, lawful money, and Federal Address at Boston, regarding investments in for- 'Reserve notes held hy Federal Reserve eign obligations 2 Agents ' 69J .Article by. on "The Federal Reserve Systern Demand notes, eligibility of, for rediscount... 527 and the War" ." 588 Directors of national banks, loans to. under sec- Message of. to COD. vent ion. of North Carolina tion 22 as amended. '. (VI4, 763 bankers, business men, etc "159 Discount, method of computing 951 Redesigns, tec! as governor of Federal Reserve Equity exchange, paper of 379 Board 659 Federal land banks, deposits by, in Federal Re- Trip to western Staix-s m behalf of -first Libertv serve Banks 379 Loan \ 429 *: Federal," use of the word, as part of the Harris, B. D., vice president of National City Bank title of member bank 615 of New York, address of, on trade acceptances... 245 ; Federal Reserve agents and assistants, bonds Hibernia Bank & Trust Co.. "Mew Orleans, La.. of, decreased (VI5 statement issued by, when joining the system.. 067 \ Fiduciary powers. States in which, banks may Idaho Banking Department, statement issued by. • exercise, under section 11 (k) of act 30 regarding State-bank membership 599 Indorsement on bill of exchange. 457 Imports and. exports, gold. (See Gold imports and Insurance, group, covering employees of Fedexports.) eral Preserve Banks 28 Income tax on investments in Liberty bonds, Limitations under section 5200, It. S., and secopinion by Attorney General mid Commissioner tion 13 of act ' '... 193, 280. 879 of Internal Revenue regarding 459, 60L 930 liquidated bank, surrender of stock subscrip- ; Inflation of currency and its effect upon rise 'in I tion by 157 prices, from London Economist. 375 : Loans to directors of national banks, under secinformal rulings of the Federal Reserve Board: tion 22 as amended 614, 76'> Acceptances— Morris plan bank, ruling as to directors of, under Allied purchasing commissions, drafts Clayton Act and Federal Reserve Act 527 drawn for purpose of financing sale of Mutual savings bank, eligibility of, for memgoods to 878 I bership 950 Bankers' acceptances drawn against ship- ! Monmeinber banks, deposits with 951 ment of goods from, a corporation, to its Paper of a waterworks company 527 branch or agent T .*. 690 Participation certificate, rediscount of 949 Bank's own acceptance, purchase ox 28, 691 '. Public-service corporation pivper, eligibility of. 1)49 Based on advertising space 114 ; Potatoes as security, superseding ruling of Nov. Bullion and coin, bills drawn against 29 10, 1935 '-...-- "... -'"- 614 v Differential as to .' 28 Real estate, bonds secured, by, as investment Drafts drawn on or before 90 days after for national bank 456 sight-..-. '. 949 .Real estate loans, national banks subject to Drawn to finance the future importation of limitations imposed by section 24 of act 61; 1 goods 527 . Renewal of short-term paper 879 Growing out of importation or exportation Kerarve balances 285 of goods .* 28 Reserves, computation ox 614 Limitations imposed by section 5200, R. S.. .Section 22 of act, interpretation of 30, 614, 763 and section 13 cf Federal Reserve Act.. 28, Section 5200 11. S. and section 13 of act, limita- 193, 286 879 tions under 193, 286, 879 ; Member banjos own acceptances, purchase Shipment of goods from, a corporation to its of 28,691 branch or agent, eligibility of acceptance Place of payment of acceptances 379 drawn against 690 Stamp tax on 950 Short-term paper, renewal of 879 Trade 287,378 State banks, conversion, of, into national banks .. 690 Warehouse receipts as security 30 : State bank mem.bersMp,*TulingsTegarding... 764, 950 Advertisements of "clearing" members 879 Stationery, use of Federal Reserve note emblem Agricultural and live-stock paper, method of on, not permissible '194 classifying 1.14 ! Slock subscriptions, payment of, pending ap- Bill of exchange, indorsement on 457 ; proval of application for membership 287 Bill of lading drafts for collection I'M ; Tax, stamp, on acceptances 050 Bonds of Federal Reserve agents &n& assistants ; Tax, on promissory notes 950 decreased 615 ! Trade acceptance," form of 378 Bonds secured by real estate as investment for Treasury certificates and bonds as security 457 national bank 156 United States 2 per cent bonds, purchase of 879 Capital stock, surrender of. by liquidated War Department obligations, purchase of, by bank 457 member banks \ 288 Cattle paper 378, 763, 690 'War-savings certificates as Christmas gifts 951 Checks payableJn exchange not authorized... 763 Warehouse receipts, paper secured by 456 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

996 FEDERAL EESEBVE BULLETIN. DECEMBER 1,1917. Page. Page. Informal ruling3 of the Federal Reserve Board— Law department—Continued. Continued. Federal Reserve notes, paper drawn for purpose Warrants, purchase of 29 of trading in Government obligations is eligi- In excess of the 25 per cent limit 1.94 ble as collateral security of 459 Nonnegotiable 193 Fifteen-day paper of member banks, renewal of. 765 Insurance agents, regulations under which national Fiduciary powers, laws passed authorizing nabanks may act as 164 tional banks to exercise— Insurance companies, licensing of, under trading Delaware 528 with the enemy act. 838 Georgia 767 Insurance, group, covering employees of Federal Washington 697 Reserve Banks 28 Government deposits— Interlocking directorates. (See Clayton Act.) Banks not required to maintain reserves Italy: against 458 Bank of, statement showing condition of 681 Deduction of. in determining amount Loans made by the United States to, Apr.- against which reserves must be carried.. 692 Sept., 1917..' 731 Liberty bonds— War loans raised by 349 Taxability of income from, ruling of Com- Japan, Bank of, statement showing condition of 682 missi oner of I ntcrnal Revenue regarding. 459 •Tones, Breckinridge, statement issued by, regarding Note issued by bank to replace funcls withmembership of Mississippi Valley Trust Co 596-598 drawn to purchase, is not eligible for re- Law department: discount 954 Acceptances— Liquidated national bank, rights of, to accrued Acceptance of drafts with documents at- dividends 117 tached 765 live stock, paper based on 616 Demand and sight bills, presentation for Member-bank acceptances, limitations imposed payment 31 by section 5200, R. S 696 Draft drawn by purchaser of goods and se- National banks— cured by bill of lading ia not eligible for Foreign branches of— acceptance 380 Not regarded as independent corporalimitations imposed by section 5200 U.S. 528, 696 tions 198 Limitations on member-bank acceptances Real estate loans by 952 under section 13 of act 528 Usurious charges by 292 Place of payment of 289 Negotiable paper, bills payable with collection State laws affecting bank acceptances, ab- charges not classed as 880 stract of 529-533 Nonmember banks, deposits by, in Federal Trust receipts as security for acceptance Reserve Banks ." 617 transaction 881 Notes and bills drawn for purpose of trading in Advertising space, acceptances based on 116 Government obligations, eligibility as collat- Advisory committee of member banks, status of, te'ral for Federal Reserve notes 459 under Clayton Act • 118 Paper secured by mortgage on real estate, eligi- Argument of counsel before Supreme Court in bility for rediscount 458 case brought to test constitutionality of sec- Private bankers as members of the Federal tion 11 (k) of act 254 Reserve System 693 Bills of exchange drawn against actually exist- Real estate, paper secured by mortgage on, ing value 195 eligibility for rediscount 458 Branch banks, foreign, of national banks: Real estate loans by foreign branch banks 952 Not regarded as independent corporations.. 198 Renewal of 15-day notes of member banks.... 765 Real estate loans by * 952 Reserves— Commissioner of Internal Revenue, ruling of, re Against Government deposits, banks not taxability of income from investment in Lib- required to maintain 458 erty bonas 459 Deductions of Government deposits, etc., Deposits by nonmember banks in Federal Re- j in determining amount against which reserve Banks 617 j serves must be carried 692 Deposits of farm land banks with Federal Re- • Synopsis of State laws relating to 767-795 serve Banks 881 j Section 11 (k) of act, litigation involving consti- Directors of Federal Reserve Banks, term of ! tutionality of 32, 254, 534 office 290 ! Section 22 of Federal Reserve Act, interpretam Directors of national banks, loans to, under j tion of amendment to 694 section 22 of act as amended 694 \ State banks— Dividends, accrued, rights of liquidated bank ! Application for membership before comto 117 j mencing business 953 Drafts payable on or before a certain date, eli- Capital subscriptions on entering Federal gibility of, for discount 291 Reserve System 696 Drafts payable with interest, negotiability of.. 200 Powers of, which become members of Fed- Exchange and collection charges, bills payable eral Reservejsysrem 696 with, negotiability of 880 State laws— Farm land banks, deposits of, with Federal Affecting bank acceptances, abstract of. 529-533 Reserve Banks 881 Relating to reserves, synopsis of 767-795 Farm land, loans on improved 618 Stock in Federal Reserve Banks, transfer of, to Federal Reserve Banks, deposits by nonmem- a national bank acquiring assets of a liquiber banks in 617 dated bank 199 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

DECEMBER 1,1917. INDEX TO VOLUME 3. 997 Page. Law department—Continued. Loans on farm land and other real estate. (See Tax on Federal Reserve Bank stock, opinion Farm land; Real estate.) by judge of United States diisi-ict court of London Economist: Ohio regarding 955 Articles from— Trade acceptances, bills payable with exchange Inflation of currency and its effect on rise . and collection charges, negotiability of 880 in prices 375 Trust receipts as security for acceptance trans- "Our financial duty".. 518 action 881 Malburn, Hon. Wm. P., appointed chief national Usurious charges by national banks 292 bank examiner for New York district 80 Warrants, purchase of 32 Member banks, condensed reports by, required in Washington, laws of, authorizing national banks principal cities 921 to exercise trust powers 897 Memphis, Tenn., branch agency at, report on 168 liberty bonds: Mercantile Trust Co., St. Louis, Mo., statement of ? Acts providing for issue of 248,345,749 regarding membership in system 361 American Bankers Association, services offered Merchants & Farmers Bank, Cheraw, S. C, stateby, in connection with 438 ment of, regarding membership in system 361 Arrangements for 341,423, 729, 734 Military service, exemption of Federal Reserve Assistance rendered by Federal Reserve Baxiks Bank employees from, not sanctioned by Board. 591 in floating 497, 577, 580, 588 Miller, Hon. A. C, visit of, to Federal Reserve Bank Circulars issued by Treasury Department re- of San Francisco in connection with branches to garding .\... 432-437, 505-506, 734-736,932 be established 340 Cost of telegrams relating to 439 Money in circulation, 1914-1917 562 Coupons, instructions for handling 938 Chart showing 563 Distribution and allotment of, by Federal Re- Morris plan bank, ruling as to directors of, under serve districts..... 506,578,932 Clayton Act and Federal Reserve Act 527 Establishment of discount rate for short-term National-bank examiners: notes secured by 425,429 Appointed for fifth and sixth Federal Reserve Extracts from Official Bulletin regarding 599 districts 748 Instructions by Board to Federal Reserve Banks Malburn, Hon. Wm. P., appointed chief exregarding conversion of outstanding bonds aminer for New York district 80 into 341 National-bank notes: National banks, subscriptions taken by .... 748 Amount issued and redeemed during year... 667,94!l Note issued by bank to replace funds with- Text of act authorizing issue of small denominadrawn to purchase, is not eligible for redis- tions of 837 count 954 National banks: Paper secured by, eligibility of, for rediscount.. 457 Advisory committee, status of, under section 8 Personnel of Liberty Loan committees 437 of Clayton Act 118 Plans for placing second issue of 729, 734 (harters issued to 20, Rediscount privileges granted to nonmem- 115,167,266,374,450, 520, 604,678, 747,864,942 ber banks, in meeting demands caused by Reports of condition as shown by comptroller's subscriptions to 1 426,430, 509 call. 161, 372,665 Resolution of American Bankers Association Comptroller's call for reports of condition of, offering services in connection with bond changes in 604 issue 438 Distribution, by States, of 100 largest national Ruling as to use of franking privilege in corre- banks 19 spondence relating to bond issue 439 Dividends, accured, rights of liquidated bank Statement by Secretary of the Treasury regard- to 117 ing floating of second issue 734-736 Examination of, payment for 374 Statement issued by Treasury Department re- Failures of, during past 3 years compared with garding exchange of * 600 preceding 33 years 939 Subscriptions announced... 497, 505, 506,829,917,932 Fiduciary powers granted to. (See Fiduciary Tax on— powers.) Opinion of Attorney General of United Foreign branches of— States regarding 601 Not regarded as independent corporations. 198 Rulings by Commissioner of Internal Rev- Real estate loans by 952 enue regarding 459,930 Increase and decrease in number and capital of, Trip of Secretary of the Treasury and Governor during fiscal year 1917 603 of Federal Reserve Board in behalf of 429 Liberty bond subscriptions, amount of, taken Licenses, list of articles requiring, for shipments by 748 made to foreign countries 583,672,755 Regulations under which national banks may Liquidating bank, surrender of stock subscription act as insurance and real estate agents 164 by 457 Report of condition as shown by last report Live-stock paper 114,540,616 under old reserve requirement 665 Method of classifying 114 Reserves of, method of computing, under Statements showing amounts held by Federal amendment to act.. 602 Reserve Banks 221, Stock in Federal Reserve Bank, transfer of, to 317,408,486, 565, 638, 717,814,902,978 a national bank acquiring assets of a liqui- Loans to allied Governments made by the United dated bank 199 States, Apr.-Sept., 1917 731 Usurious charges by 292 Loans to directors of national banks, suggested form Negotiability of paper with exchange and collection of resolution when making 614 charges 880 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

998 JTEDEKAL EESEEVE BULLETIN. DECEMBER 1,1917. Page. Netherlands, Bank of, statement showing condition Promissory notes: of 681 Regulation of the Board regarding rediscount of. 539 Nonmeinber banks: Tax on 950 gfc Deposits of, rulings regarding 617, 951Real estate agents, regulations under which national Rediscounting privileges granted by Board to, banks may act as. 164 in meeting demands caused by subscriptions Real estate: &y: to liberty Loan " 426,430, 509 Bonds secured by, as investment 456 Norway, Norges Bank, statement showing condition Loans on— of../. 082 National banks subject to limitations im- Notes, drafts, and bills of exchange, regulations of posed by section 24 of act 691 the Board regarding rediscount of 539, 541 Regulations of the Board regarding 546 Ohio Bankers' Association, circular of, on war Paper secured by mortgage on, eligibility for service 852 rediscount 458 Old Colony Trust Co., Boston, Mass., statement of. (See also Farm, land.) regarding membership in system 370 Receipts and disbursements of Federal Reserve Omaha, Nebr., branch bank established at 586 Board 87, 88 Opinions of the Attorney General. (See Attorney Regulations governing the exportation of coin, bullion, and currency 736-739 General, opinions of.) Regulations under which national banks may act Opinions of counsel of the Federal Reserve Board. as insurance and real estate agents '. 164 '(See Law Department.) Regulations for carrying out provisions of trading Oregon, statement of Superintendent of Banks of, with the enemy act 860 regarding State bank membership 934 Regulations of the Federal Reserve Board, 1917: Pennsylvania, act passed by legislature of, permit- Reg. A—Rediscounts under section 13 539 ling State banks to join the system 666 Reg. B—Open-market purchases of bills of Philippine 'National Bank, designated as agent of exchange, trade acceptances, and bankers' Federal Reserve Bank of San Francisco 239 acceptances under section 14 541 Portland. Orog., branch of Federal Reserve Bank of Reg. 0—Acceptance by member banks of drafts and bills of exchange 542 San Francisco in 339 Keg. I)—'.rime deposits and savings accounts.. 543 'Population of Federal Reserve districts oti& Reg. E—Purchase of warrants 543 Potatoes as security, ruling of Board, on 614 Keg. F—-Trust powers of national banks 545 President of the United States: Reg. G—Loans"on farm lands and other real Executive order prescribing regulations for estate 546 carrying out provisions of the trading with the Reg. II—-Membership of State banks and trust enemy act 860-863 companies 547 Proclamations regarding export licenses in the Reg. I—Increase or decrease of capital stock of foreign trade. /. 582 : 672 Federal Reserve Banks 548 Regulations issued by, governing export of coin, Reg. J—Check clearing and collection 549 bullion, and currency 736-739 Renewal of 15-day notes of member banks 765 Statement of. regarding State bank membership 827 Reserve cities designated 921 Press statements: Reserves: Amendments to Act proposed by Federal Re- Computation of 614 serve Board 98 | Deductions of Government deposits in deter- Bank failures, statement by Comptroller of the ! mining amount against which reserves must Currency regarding 939 j be carried 458, 692 Canadian short-time credit, statement by Secre- Effect of proposed amendment to section 19 of tary of the Treasury 603 act regarding 109,285 Comptroller's call for reports of condition of Federal Reserve Bank reserves, 1915 and 1916, national hanks, changes in 604 chart showing 56 Foreign loans, investments in 239 Fictitious reserves carried in the form of reserve balances 2 Form for reporting reserve position in Boston Form for reporting reserve position in Boston clearing-house bank statement 83 clearing-house bank statement 83 i ncrease and decrease in number and capital of Letter of Board regarding new reserve requirenational banks during year 603 ments under amendments to act 508 Liberty bonds 432 505, 600, 734 ; Member banks not required to maintain reserves Statement by comptroller regarding against Government deposits 458,692 national bank subscriptions to 748 Movement of reserves of Federal Reserve Banks Limitations under section 5200, R. S 519 during 1917 847-850 Message of Hon. W. P. G. Harding to convention Chart showing 848 of North Carolina bankers, business men, etc 159 National-bank, method of computing under National-bank examiners appointed for fifth amendment to act 602 and sixth Federal Reserve districts 748 National banks, 1915-1917 [[ 483 Recommendations of Federal Advisory Council Chart showing 484 on amendments to act 106-109 State laws relating to, synopsis of 767-795 Reports of condition of national banks as shown Resources and liabilities of Federal Reserve by comptroller's call 161,372, 665 Banks, statements showing 67 Reserves held by national banks 373 Treasury certificates of indebtedness, issues of 240, 145, 226, 322, 416, 491, 570, 645, 722, 820,*910,983 341,663,741,838 Revenue act passed by Sixty-fourth Congress: House report on 251 Private banks, membership of, in Federal Reserve Text of 248 System 693 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

DECEMBER 1, 1917. INDEX TO VOLUME 3. 999 Page. Page. Review of the work of the Federal Reserve Board, State banks and trust companies—Continued. by months 1,75, Examination of, instructions to Federal "Reserve 153, 235, 335,423,497,; 7, 651, 729, 827, 917 agents in connection with applications for Rulings of the Board. (See Informal rulings; Law membership \ 592-594 department.) Hibemia Bank & Trust Co., New Orleans, La., Russia: statement issued by, when joining system... 667 Loans made by the United States to, April- Idaho banking department, statement issued by, September, 1917 731 regarding State bank membership '.. 599 National debt of, since outbreak of war 14 Jones. Breckinriclge, statement "issued by, Statements showing condition of Bank of regarding membership oi Mississippi Valley Russia 234,329,500, 681,946 Trust Co" ".' 590 -598 War loans raised by 349 List of, which have joined the svstem up to Savings Bank of Richmond, Richmond, Va., state- July 31, 1917 ' * 595 ment of, regarding membership in system 356 Membership in system, rulings regarding 764,950 Savings accounts, regulations of the Board regarding 543 Mississippi*Valley Trust Co.j statement'issued Savings banks: by, regarding membership in system 596-598 Mutual, eligibility of, for membership 950 New York State banks, cooperation of, in con- Rediscount privileges granted by Board to, in no! of gold supply (>59 meeting demands caused by subscriptions to Opinion by Attorney General construing sec- Liberty bonds 426,430,509 tion 8 ol Clayton Act regarding interlocking Seattle, Wash., establishment of branch of Federal directorates as affecting Stale banks \ 744 Reserve Bank of San Francisco in 339 President of the United States, statement of, Secretary of the Treasury: regarding State bank membership 827 Letter regarding subtreasuries and their rela- Pciinsylva-iiia, act passed by legislature of, pertion to Federal Reserve Banks 110-112 mitting State banks to joiti the system HOC Statements regarding Liberty Loans 432, Powers of, which become members of Federal 505,600, 734, 932 'Reserve System (196 Trip to Western States in behalf of the first Regulations of the Board regarding member- Liberty Loan 429 ship of 546 Section 11 (k) of act, litigation involving constitu- Statements issued by new members which have tionality of 32,254, 534 joined the Federal Reserve System. 355, 598, 667, 834 Argument of counsel before Supreme Court... 254 Statements o£ Superintendent of Banks of Decision of Supreme Court. 534 Oregon, regarding membership of 934 Section 5200, R. S., and section .13 of act, limita- Views of Federal Reserve Bank officer on adtions under 28,193, 286, 519,528, 696, 879, 881 vantages of State-bank membership 84 Section 22 of act: "Views of 32 State banks regarding advantages of Interpretation of amendment to 614.694 membership in system 355-372 Resolution, suggested form of, to be adopted State Department, warning as to banking transacwhen loans are made to directors, etc.. 614,695,929 tions with enemy aliens 431, 655 Serbia, loans made to,"by the United. States 781 State laws relating to trust powers of national banks. 528, Short-term paper: 697, 767 Advocated by Board 733. 739 State laws affecting bank acceptances, abstract of. 529-53 Renewal of.." K79 State laws relating to reserves, synopsis of 767-795 Silver: Stationery, use of Federal Reserve note emblem on, Monthly movement of the price of 842 not permissible.. 194 Charts showing 843. 844 Sterling exchange rates 582 683 ; Ratio of silver to gold, at various prices of silver. 843 Stock in Federal Reserve Banks: Value of pure silver in silver dollar 843 Payment of, pending approval of application Charts showing 844 for membership • 287 Spain, Bank of, statement showing condition of 682 Regulation of Board regarding increase or de- Spokane, Wash., establishment of branch, of Federal crease of 548 Reserve Bank of San Francisco in 339. 586 Surrender of, by liquidating bank 457 Stamps, war-savings, plan for issue of 730, 925 Transfer of, to a national bank acquiring assets State banks and trust companies: of a liquidated bank 199 Admitted to system during the year 158. 347, Subtreasuries, substitution of Federal Reserve 439, 507, 603, 659, 734, 834, 933 Banks for, letter of Secretary of the Treasury Amendments to act regarding admission, of, rein- regarding '. 110-112 troduced in Congress. 336 Sullivan Bank & Trust Co., Montgomery, Ala., American Bankers Association, resolution of. statement of, regarding membership in system.. 359 urging amendments to State laws permitting Supreme Court of the United States, decision of, in deposits of reserves with Federal Reserve case brought to test the constitutionality of sec- Banks 335 tion ll(k) of act . 534 Applications for membership before com- Sweden Riksbank, statement showing condition of- 681 mencing business 953 Swiss National Bank, statement showing condition Capital less than $200,000, status of, for member- of 682 ship 764 Tax on telephone, telegraph, and express charges, Capital subscriptions on entering Federal ruling of Commissioner of Internal Revenue on.. 931 Reserve system (390 Tax, stamp, on acceptances 950 Conversion of, into a national bank (390 Tax on Federal Reserve Bank stock, opinion by judge Digest of procedure in connection with applica- of United States district court of Ohio regarding.. 955 tions for membership 592 Tax on promissory notes. 950 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1000 FEDERAL RESERVE BULLETIN. DECEMBER 1,1917. Page. Page. Tax on income from Liberty bonds: United Kingdom—Continued. Opinion by Attorney General of the United National debt of, since outbreak of war 10 States regarding 601 War loans raised by 349 Rulings on, by Commissioner of Internal Reve- United States bonds: nue 459,930 Amounts held by Federal Reserve Banks, state- Telegrams, cost of, relating to bond issue 439 ment showing... 416, 490, 569, 644, 721, 819,909,982 Time deposits and savings accounts, regulations of Circular of a Federal Reserve Bank relating to the Board regarding 543 purchase, etc., of, under section 18 of act 81 Trade acceptances. (See Acceptances, trade.) Conversion operations of Federal Reserve Trading with the enemy act: Banks, statements showing 415 Executive order prescribing regulations for Coupons on, instructions for handling 938 carrying out iv- ": j of 860-863 Discount of paper for use in trading in bonds or Lincensin; companies under 838 notes 158 Textof... 851-860 Instructions of Board to Federal Reserve Banks Treasury bills, regarding conversion of outstanding bonds British 653 into war bonds 341 Canadian.. 603, 652 Purchase, allotment, and conversion of, under section 18 of act 5, 80, 238, 240, 341,507,879 Treasury certifi« Redness: War bond issue of 1898, subscriptions to 343 Amounts he al Reserve Banks, statements aho^-ssssss*35-" 416,490, 569, 644) 819, 909,982 (See also Liberty bonds.) Usurious charges by national banks 292 Announcem" ^tary of the Treasury re- War Department obligations, purchase of, by garding fir * (ftscoiwU^' of 341 member banks 288 Allotment te ^eral Reserve Bank under War bond acts of 1917, text of 345, 749 first nine i 846 War loans raised by principal belligerent coun- Amount and ;ation of first nine issues of.. 846 tries 349, 351 Issues of.. 2\ 67,341,423, 651, 663, 729, 741, 830, 838 War-revenue act, reprint of portions of 868-877 Letter of Bo\ to Federal Reserve Banks re- War-savings certificates: garding pu VJnase of 338 Committee appointed to handle 730 Paper secured by, eligibility of, for rediscount. 457 Plan for issue of 730,918,925 Treasury Department: Substitution of, for gold coin as Christmas Circular regarding war savings certificates 927 gifts 931,951 Statements regarding Liberty Loans 432, Warburg, Hon. P. M., redesignated as vice gov- 505, 600, 734,932 ernor of the Federal Reserve Board 659 Treasury notes, discount of paper for use in trading Warehouse receipts: in bonds or notes 158 As security for purchase of acceptance, issued Treman, R. H., address of, on trade acceptances.. 9,243 independent of the borrower 30 Trust companies, regulations of the Board regarding Paper secured by 456 membership 546 Regulation of Board regarding drafts drawn (See also State banks.) against shipment of goods secured by 542 Trustee, executor, etc., regulations of the Board re- Warrants: garding national banks acting as 545 Amounts purchased and held by Federal Re- (See also Fiduciary powers.) serve Banks, distributed by maturities 65,143, United Kingdom: 223, 319, 413, 488, 567, 642, 719, 816, 907,980 Bank of England— Purchase of, rulings regarding 29, 32,193,194, 543 Foreign agency established with 5 In excess of the 25 per cent limit 194 Statements showing condition of 234, Nonnegotiable 193 329, 500, 681,943 Regulations of the Board regarding 543 British short-time treasury bills, statement of Washington, laws of, authorizing national banks to Secretary of the Treasury regarding 652 exercise trust powers 697 Loans made by the United States to, April- Wills, D. C, address of, on trade acceptances 243 September, 1917 731 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis