Federal Reserve Bulletin, 1918-02

FEDERAL RESERVE BULLETIN ISSUED BY THE FEDERAL RESERVE BOARD AT WASHINGTON FEBRUAEY, 1918 WASHINGTON GOVERNMENT FEINTING OFFICE 1918 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FEDERAL RESERVE BOARD, EX OFFICIO MEMBERS. W. P. G. HARDING, Governor. PAUL M. WARBURG, Vice Governor. WILLIAM G. MCADOO, FREDERIC A. DELANO. Secretary of the Treasury, ADOLPH C. MILLER. Chairman. CHARLES S. HAMLIN. JOHN SKELTON WILLIAMS, Comptroller of the Currmcy. H. PARKER WILLIS, Secretary. SHERMAN ALLEN, Assistant Secretary and Fiscal Agent. M. 0. 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. !n 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 a second edition of the Index Digest of the Federal Reserve Act, by Hon. Charles S. Hamlin, member of the Federal 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 copses (bound in paper) should at once remit $1 or (bound in cloth) $1.25 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 respective Federal Reserve Banks for distribution. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

TABLE OF CONTENTS. Page. Review of the month 69 Exchange agreement with Argentina * 76 Capital Issues Committee of the Federal Reserve Board 77 Annual Report of the Federal Reserve Board transmitted to Congress 79 Banks granted authority to accept up to 100 per cent of capital and surplus 80 Fiduciary powers granted to national banks 80 Executive order relating to foreign exchange - 81 Press statements issued by the War Trade Board 87 Treasury circular on sale of war savings certificates and stamps 87 New national bank charters and capital increases during the year *.. 89 Commercial failures during the year 89 Growth of resources of national banks 90 New national bank charters issued during the month ., 92 State banks and trust companies admitted to the system up to Jan. 31, 1918. 92 Text of bill creating a War Finance Corporation .. 95 Earnings and expenses of the Federal Reserve Banks 99 Gold settlement fund transactions 105 Operation of the Federal Reserve interdistrict collection system 107 Informal rulings of the Federal Reserve Board 108 Law department. 110 Business conditions throughout the Federal Reserve districts 112 Ratio of total reserves to aggregate net deposit and Federal Reserve note liabilities 130 Chart showing 131 Federal Reserve notes and gold cover held by Federal Reserve agents 132 Chart showing.. - — 133 Discount operations of the Federal Reserve Banks 134 Acceptances 138 Resources and liabilities of the Federal Reserve Banks 142 Federal Reserve note account of Federal Reserve Banks and agents 145 Interdistrict movement of Federal Reserve notes 147 Member bank condition statement , 148 Earnings on investments of Federal Reserve Banks 151 Gold imports and exports „ 152 Discount rates in effect 152 IV Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FEDERAL RESERVE BULLETIN VOL. 4 FEBRUARY 1, 1918. No. 2 REVIEW OF THE MONTH, period must be allowed for the adjustment of transactions growing out of it. On January The first month of the year 1918 finds the 25 the total amount of paper collaterally by Condition of Federal Reserve system in a Government obligations held by all Federal Re- Federal Reserve condition of increasing strength serve Banks had been reduced to $312,520,000. system. p nsibility, The total and res O While this sum is larger than the amount held gold on hand on Jan. 18 was $1,784,307,000, at the corresponding date subsequent to the the largest accumulation of the metal ever in first Liberty loan, the sum thus remaining the possession of the Federal Reserve Banks. unliquidated is relatively moderate, consider- The reserve percentage held against notes and ing the scope of the Government loans placed deposits is approximately 65 per cent, while during the year. the membership of State institutions has in- The annual report of the Federal Reserve creased during the month by 46, bringing Board was sent to Congress on the total State membership to 296 with com- T h e Board's January 22. There is pubbined resources of $5,036,051,076. The final aim&al report. lished elsewhere in this issue a figures for gross earnings for the calendar year general synopsis or digest of the salient fea- 1917, elsewhere presented in detail in this issue, tures of the report. The following summary? are $15,838,859, and net earnings. $11,202,993. with reference to the outcome of the operation The operations of the gold settlement fund for of the system during the year 1917, is pre- 1917 amount to $26,962,946,500, as against sented in the report itself and affords a sketch $5,757,836,000 during the preceding year. of the general situation as affected by Govern- Items cleared during the month ending January ment financing: 15 of the present year number 359,067, as compared with 241,933 cleared during the cor- Taking the year as a whole, it 'will "be noted responding period in 1917. There has thus that, although there has been a great increase in the total assets of the system, there has been been during the past 12 months a very great a reduction of gold and lawful money reserves increase both in the scope of the banks' operafrom 81.4 per cent at the beginning, to 63.6 tions, in their holdings of gold, in their mem- per cent at the end of the year, but it should bership, in their total resources, and in their not be overlooked, that the figures for Decemcapacity to meet such demands as may be ber 28, 1917, represent the condition existing at a time when the process of distributing the brought to bear upon them. As a result of second Liberty loan was still uncompleted. the sale of the second Liberty loan, there has The question whether the final absorption by been a considerable increase in commitments the ultimate investor of the second Liberty of Federal Reserve Banks upon paper secured loan and the resulting financial adjustments by Government obligations, and the paper dis- would bring about as favorable a situation as that which existed at the closing of the first counted by them is still In process of liquidaloan,, is still an open one, but indications axe tion, only three months having elapsed since that there will be a larger amount of bonds the completion of subscriptions to the loan. left in the hands of the banks and that a cor- The final instaliixientlupon the second Liberty respondingly greater volume of discounts seloan was paid on January 15, and a reasonable cured by Government obligations may remain Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

70 FEDEEAL RESERVE BULLETIN. FEBRUARY 1,1918. with the Federal Reserve Banks than was the are shown under the head of United States secase at the close of the first Liberty loan. The curities owned, net demand deposits, and Govexisting condition is susceptible of improveernment deposits. The first item shows a dement and will be improved as the public percrease from 1,763.1 to 935.8 millions. In this forms its duty of absorbing the Government total of 935.8 millions on the date named there loans out of savings. The position of the banks with respect to credit expansion is indicated by were included about 275 millions of the 700 the condensed statement of the deposits, loans, millions of United States bonds deposited with discounts, and investments of the national the United States Treasurer to secure circulabanks as reported to the Comptroller of the tion, besides relatively small amounts of other Currency on November 20, 1917, as compared Government securities issued before the war. with corresponding figures on December 31, Loans secured by Government obligations 1914, November 10, 1915, and November 17, 1916. show a slight increase during the period from 373.5 to 381.3 millions, while other loans and [In thousands of dollars; 000 omitted.] investments (exclusive of permanent invest- Dec. 31, Nov. 10, Nov. 17, Nov. 20, ments) increased from 9,470.1 to 9,897.2 mil- 1914. 1915. 1916. 1917. lions. Aggregate loans and investments of re- Deposits, net, on which porting banks show a decrease from 11,606.8 reserve is computed 6,668,325 8,256,662 9,976,980 10,348,806 to 11,214.3 millions. The decrease would, of Loans and discounts, including overdrafts 6,363,435 7,241,140 8,355,101 9,550,571 course, have been larger had the number of United States bonds 791,995 777,765 724,473 2 2,354,183 Ot s h e e c r u r s i t t o i c e k s1 s, bonds, and 1,313,778 1,343,822 1,747,794 1,949,619 reporting banks remained constant. Reserves of these banks (all held with their 8 1 I E n x c c lu lu d s e i s v e U o n f i t F ed e d S e t r a a t l e R s e c s e e r r ti v f e ic a B te a s n k o f s i t n o d ck eb . tedness and payments on Federal Reserve Banks) show an increase for account of subscriptions for Liberty loan bonds. the period from 1,137.8 to 1,147.3 millions, It is proper to point out that while, during while cash in vault went up from 388.2 to 394.9 the year 1917, there has been a lessening of the millions, the increases under these two heads fluidity and immediate availability of the coun- to a large extent representing amounts credtry's banking resources, the change is not sur- ited to newly reporting banks. prising when there is considered the extent of Net demand deposits increased from 8,391 to the requirements which have been made upon our banking system. It is evident also, from 8,901.9 millions, and time deposits from an analysis of the figures, that the decrease in 1,259.9 to 1,361.8 millions. The ratio of comreserve strength is attributable only in a minor bined vault cash and reserve to combined net degree to normal commercial discounts and demand and time deposits shows a decline that it is mainly the result of Government fifrom 15.8 to 15.0 per cent. For the banks in nancing and the consequent demands upon our the three central reserve cities this ratio deresources. clined from 17.2 to 16.5 per cent. Different Comparative figures of chief assets and results are obtained if in figuring reserve perliabilities of member banks in centages account is taken of Government deprinciPal oities under date Gf posits, against which no reserve need be car*- December 7, 1917, and Janu- ried by member banks. These deposits show ary 18, 1918, throw some light on the part a decline from 1,475.6 to 354.7 millions, while played by the banks of the country in the finan- for all three classes of deposits combined the cial operations of the Government. Figures apparent decline is from 11,126.5 to 10,618.5 for the two dates are not exactly comparable, millions. On the basis of these figures the the earlier figures reflecting condition of 607 ratio of combined cash and reserve to deposits banks, while those for the later date represent of all reporting banks shows an increase betotals for 662 banks, but they are sufficiently tween the two dates from 13.7 to 14.5 per indicative of the general trend of development cent. For the banks in the three central during the period following the consummation of reserve cities this ratio increased from 14.3 to the second Liberty loan. The largest changes 16.0 per cent. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FEBRUARY 1,1918. FEDERAL RESERVE BULLETIN". 71 It is noteworthy that aggregate loans and millions. The ratio of total earning assets to investments on both dates were in excess of net. deposits, which on the earlier date stood total deposits, the ratio of total investments at 73.7 per cent, declined to about 69 per to total deposits of all reporting banks showcent, while the ratio of total reserve to ing an increase from 105 to 106.2 per cent. For combined net deposit and Federal Reserve the banks in the central reserve cities this ratio shows a decline from 102 to 100.2 per cent. note liabilities went up from 62.9 to 65.4 per Between December 21, 1917, and January . cent. 25 1918, the Federal Keserve In the following table are shown the changes 3 Operations of Banks ii qu idated nearly 70 between December 21, 1917, and January 25, Federal Reserve . -,-, .-,-, , -. -, 1V v 1918, in the totals of discounted and purchased « , millions of bills discounted and bills held by each of the Federal Reserve Banks. . . Banks, also changes in the aggregate holdings bought, and increased their of other classes of earning assets: holdings of United States securities by about 14.6 millions. Bills discounted on hand show [In thousands of dollars, i. e., 000 omitted.] a decrease of 65.8 millions, while discounts secured by war obligations (including both Federal Reserve Bank. Dec. 21, Jan. 25, Net Net customers' paper and member banks' collateral 1917. 1918. increase. decrease. notes) increased from 298.2 to 312.5 millions, Boston 70,158 62,151 8,007 or from 43 to slightly below 50 per cent of the New York 397,450 390,898 6,552 Philadelphia 65,331 47,989 17,342 total discounts held. Other discounted paper Cleveland 77,921 62,338 15,583 Richmond 44,644 45,657 1,013 on hand decreased by over 80 millions from Atlanta 23,765 18,172 5,593 Chicago 116,194 119,445 3,251 295.2 to 315.1 millions and constitutes at pres- St. Louis 47,897 35,896 12,001 Minneapolis 23 050 15,366 7,684 ent but slightly over one-half of the total dis- Kansas City 35,356 32,580 2,776 Dallas 25,157 22,762 2/395 counts by the banks. A decrease of 4 millions San Francisco 44,529 48,320 3,791 is indicated in the total holdings of paper Total bills 971,452 901,574 69,878 Total United States securities. 108,568 123,194 14,626 bought in the open market, all the banks ex- Other earning assets 1,102 4,902 3,800 cept at New York and Boston reporting net Total investments held.1,081,122 1,029,670 51,452 liquidation of this class of paper. New York increased its holdings of bought paper from On January 17 the Secretary of the Treasury announced that he had offered 138.7 to 168.3 millions, or from about 50 to A new issue of subscription at par and acfor t o w v o er d 6 a 0 te s p . er cent of the total reported on the . certificates. crued inter r esj t throug - h « , t - h ,' e ^ J e , d- Investments in Government short-term secu- eral Reserve Banks, $400,000,000 of Treasury rities, chiefly certificates of indebtedness, in- certificates of indebtedness, payable on April creased from 58.1 to 72.7 millions, the New 22, 1918, with interest at 4 per cent per annum York bank alone reporting an increase of 10.6 from January 22, 1918. Subscriptions were millions in the temporary investments of this received at Federal Reserve Banks up to the class of securities. United States long-term close of business on Tuesday, January 29, 1918. securities held by the banks show practically This offering was oversubscribed, allotments no change. Other earning assets include, be- in full being made in the order in which subsides warrants on both dates, also $2,765,000 of scriptions were received in the several districts. bill of lading drafts on the later date. The certificates when issued will be in denomi- During the period under review net deposits nations of $1,000, $5,000, $10,000, and of the Federal Reserve Banks increased from $100,000, and, as in former offerings, it is an- 1,466.3 to 1,492.9 millions, gold reserves from nounced that the certificates will be exempt 1,645.5 to 1,726.5 millions, and Federal Keserve both as to principal and interest from all taxanotes in circulation from 1,227.6 to 1,234.9 tion now or later to be imposed by the United Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

72 FEDEEAL RESERVE BULLETIN. FEBRUARY 1,1918. States, or by any local taxing authorities except ing members understand the necessity of curestate and inheritance taxes, graduated income tailing nonessential credits, or sorting out and taxes, and excess profits and war profits taxes sending in gold certificates and gold coin, of now imposed or to be imposed upon the incomes securing more State banks as members, and of or profits of individuals and corporations. The absorbing their proper proportion of these graduated income taxes and excess profits taxes short-term Treasury certificates. In a comdo not, however, apply to bonds and certifi- munication to the several banks, the Board cates whose principal does not exceed $5,000. under date of January 14, says: Provisions with respect to redemption at par "A special department of your bank might and accrued interest at specified dates before be organized for this work under the immediate maturity are made applicable to this issue as supervision of some prominent banker in your district, of vision and influence, and, after your well. The new issue is the thirteenth succesorganization has been effected, representative sive offering of certificates that has occurred bankers from various parts of your district since the entry of the United States into the might be asked to visit you with the view of war, and is the first step anticipatory of a third acquainting themselves with the requirements general loan. Of the first eleven issues of cer- of the situation, and of devising the best means of meeting them. A definite proportion of certificates, five were funded into the first Liberty tificates might be allotted to each of your banks, loan- and six into the second, while the twelfth and committees formed in each group of the issue was marketed for the purpose of antici- various State banking associations whose duty pating the proceeds of taxes due in June, 1918, it would be to correspond with and to visit all banks in the group, and to urge upon them the under the excess profits and income provisions importance of cooperation. It should be of the new legislation of 1917. The thirteenth pointed out to your member and nonmember issue is thus the first of those to be floated in banks that by investing in these Treasury ceranticipation of the third Liberty loan. tificates of indebtedness, and in placing them The Board has taken measures to call to the with their depositors, they would best insure themselves against undue strain in arranging attention of the several Fedfor payments for subscriptions to the next Distribntloii of era i Reserve Banks the im- Liberty loan issue. The ensuing bond camcertifecates. „ . . , ., paign is going to be a most vigorous one, and portance ot securing a wide and special attention will foe paid to the countryuniform distribution of these certificates of in- districts. By arousing interest in the sale of debtedness which will be issued pending re- Treasury certificates, you will not only render most effective service to the Government in ceipts froin the next bond issue. In a comproviding for its financial necessities, but you munication to the several banks it has esti- 'will do a great deal toward preventing expanmated that the amount to be raised will sion of unnecessary credits and will avoid a > probably average about $300,000,000 per week, strain upon your member banks and upon your arid it decided to secure as widespread an own bank which, if not anticipated in this way, might be very embarrassing.77 absorption of these certificates as possible in order that no-particular group of banks may The distribution of capital and credit between be called upon to absorb more than its due enterprises in accordance with share, thereby compelling itself to curtail Priorities in cap-,i • * ,. . , £ .,-„. tneir relative importance irom necessary credits in order to carry these securiiiai ISSIS6S- _ x ties. With a view to preventing the developthe standpoint of the winning of ment of such a situation, it has been suggested the YVSLT has had the careful attention of the Fed« that Federal Reserve Banks effect an organizaeral Reserve Board for some time past. In its tion which will enable them to carry on an annual report the Board said: "There must be effective campaign for the wide distribution of a conservation of credit as well as of goods, and the certificates in districts. The Federal Recredit, generally speaking, should not be used serve Banks have been advised to inaugurate except where it is required for the common a campaign of education with the view of havwelfare, as in planting crops, the manufacture Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FEBRUARY 1,1918. FEDEKAL RESERVE BULLETIN. 73 of necessary articles, or in such construction taking covered by any proposed issue is neceswork as may be essential in bringing about sary for the public use and welfare, or conincreased production. Limitation in ordinary tributes toward winning the war. The queslines of credit is necessary to make room fcir tion at issue is not, the Secretary points out, the credits required by the Government for tile one merely of capital, but also one of material purchase of supplies essential for war pur- and labor. "Public improvements or private poses. It must be expected that the w&r enterprises which in times of peace might be activities of the Government will bring about entirely proper/' he says " should now be con- 7 a further expansion of deposits and loans ijn sidered in the light of, or in connection with, banks, and in order to keep our credit structure the great governmental problems arising out strong it is necessary that the banks should of our military necessities/' exert their influence and lend their energies tjo lii order to carry out the functions thus undera more general absorption of Government taken by the Federal Reserve loans by savings and to limitation of private Capital Issues Board there hag been named credits wherever practicable without causing Committee. hardship. We must look to the future aijd an advisory committee whose prepare unceasingly for further demands which personnel and purposes were announced in a may be made upon us." I statement issued to the public on January 27. A special committee of the Board, con- In applying the idea of conservation of capisisting of Messrs. Warburg, Delano, and tal and credit the Federal Reserve Board, at Hamlin, is assigned to the supervision of new the request of the Secretary of the Treasury, capital issues, while in addition to these three has undertaken the duty of passing upon such members the proposed advisory committee is plans or proposals for issues of capital designed to consist of Mr. Allen B. Forbes, senior partto finance new enterprises or to refinance or ner of the firm of Harris, Forbes & Co., New extend old ones as may be submitted to it. York City; Mr. F. H. Goff, president of the Elsewhere in this issue (p. 77) will be found I a Cleveland Trust Co., Cleveland, Ohio; and Mr. full statement concerning this work. \ Henry C. Flower, president of the Fidelity While no specific authority has been confer- Trust Co., Kansas City, Mo. Mr. Forbes will red upon any administrative agency to approf e act as chairman of the advisory committee. or disapprove new undertakings, a number pi The counsel of the committee will be Mr. B. W. corporations, executives, bankers, and munici- Palmer, of the firm of Storey, Thorndike, pal officials have already submitted plans for Palmer & Dodge, Boston. The Capital Issues new enterprises or new issues; and it is now ap- Committee will organize at each of the twelve parent that the Government may count upon Federal Reserve Banks local committees for the purpose of furnishing to the committee a full measure of cooperation on the part ;of such additional information and recommenda- States, municipalities, and private corporations as the Board may require in dealing with tions, with the result that a large number jof cases originating in the respective districts. such plans for future development will be sufo- These local committees will consist in e'Bch case mittedfrom time to time. The Secretary of the of the chairman of the board of directors and Treasury strongly urges upon the corporations the governor of the respective Federal Reserve and bankers of the country that before makiiig Banks and three additional members particucontracts requiring the use of labor and matelarly equipped by banking or business experirial, and before placing new issues of securities ence to serve with these ex officio officers of or agreeing to purchase such new issues, tiHey the bank; in addition the Board .will approve a confer with the Federal Reserve Board in orcjer list of names of qualified persons in those that it may determine whether the undprlocalities, who may be called in as sub- 37528—18 2 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

74 FEDBEAL BESERVE BULLETIN. FEBRUARY 1,1918. stitutes or additional advisers for such local enterprises necessary to the war in cases where committees whenever required. The com- they can not obtain such aid through regular mittee does not expect to deal with cases banking channels, as well as in exceptional touching railroad financing, but it will give cases directly to persons, firms, corporations, advice with respect to the sale of securities or associations, whose operations shall be necesinvolving municipal, public utility, and indus- sary or contributory to the prosecution of the trial financing. The committee will act in a war. The Secretary proposes that the corpomanner similar to that of the Capital Issues ration in question be permitted to have out- Committee in London, which exercises its in- standing at any one time its own notes or oblifluence, relying upon voluntary cooperation gations in an amount aggregating not more on the part of banks, bankers, and business than eight times its paid-in capital, such notes men of the country. For the time being the or obligations to mature in not less than one or committee does not contemplate passing upon more than five years from the dates of issue. individual issues of securities aggregating less In a statement regarding the proposed corthan $500,000, in the case of industrial and poration, issued to the press on February 1, public utility corporations, and $250,000 in the the Secretary of the Treasury says: case of municipalities; nor upon securities hav- "As a corollary to the provision for the ing a maturity of less than one year. The extension of credits, the bill provides for apwork thus undertaken is in line with the plan proval by the corporation, through a system which has already been announced in the of licenses, of issues of securities with a view Board's annual report as well as in its New to preventing the use of capital in unnecessary expenditures during the period of the war. Year's announcement respecting the necessity This is of great importance to the country in of saving bank credit as well as goods. Many order to conserve the supply of new capital indications of a disposition to cooperate have and make it available for Government loans already been received, various important and essential war purposes. The Secretary of municipalities submitting their plans for pro- the Treasury has already asked for the voluntary submission to the Federal Reserve Board posed financing in order to obtain the advice of any projected capital issue and has asked of the new organization. A considerable the Federal Reserve Board to pass upon such number of private enterprises have done like- issues. The Federal Reserve Board is already wise, and the Board asks for the aid and sup- performing this patriotic service, and in doing port of all those bankers, trust companies, and that has secured the cooperation of prominent bankers acting in an advisory capacity. The other concerns which are from time to time work which the Board has taken on this line interested in the issue of securities, as well as should be regarded as preliminary to and that of the business community, at whose in- laying the basis and furnishing in no small stance, or in whose behalf such issues are part the organization for the work which the placed on the market. corporation will have to do." Carrying still further the idea of a plan to Further details of the plan are presented in sustain the credit of those in- full on p. 95 of this issue. War Finance d us tries which are performing For the five weeks ending January 18 the net Corporation. r . & outward gold movement to- Junctions essential or desirable f taled about «,932,000, comin connection with the conduct of the war, the pared with $3,426,000 for the Secretary of the Treasury announced on Janupreceding four weeks. Gold imports for the ary 29 a draft of a measure to create a "War five weeks totaling $3,506,000 came largely Finance Corporation." The function of the from Canada, Mexico, and South American corporation would be to make advances to apcountries, while gold exports totaling about plicants, including commercial banks, savings $5,438,000 were consigned chiefly to Mexico, banks, and other bankers or trust companies, Canada, and Chile. which shall have advanced funds to industrial Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FEBRUARY 1,1918. FEDEEAL RESERVE BULLETIN. 75 Net gold imports for the calendar year 1917 is in about the same position as a year ago, totaled $181,542,000, compared with $529,952,- while in four there has been some falling off. 000 for the year 1916, and $420,529,000 the It is proper to point out, however, that these year before. The gain in the country's stock percentages are somewhat misleading in certain of gold since August 1, 1914, was $1,050,785,- cases. For example, there is no gain in the 000, as may be seen from the following exhibit: Boston district because all the banks in that district, both member and nonxnernber, have [In thousands of dollars; i. e., 000 omitted.] from the outset remitted at par. It may be Excess of that in some other cases also, where the gain imports Imports. Exports. over has been small, it is because the number of exports. banks reporting a year ago represented a larger Aug. 1 to Dec. 31,1914. 23,253 104,972 181,719 proportion of all the banks in the district than Tan. 1 to Dec. 31,1915.. 451,955 31,426 420,529 Jan. Ito Dec. 31,1916.. 685,745 155,793 529,952 in other districts which apparently make a Jan. Ito Dec. 31,1917.. 553,713 372,171 181,542 Jan. 1 to Jan. 18,1918.. 2,258 1,777 481 better showing. Total 1,716,924 666,139 1,050,785 Where good progress has been made, it has been almost invariably due to energetic solicii Excess of exports over imports. tation by one or more members of the staff of The gold embargo has continued throughout the bank who have devoted their attention to the month upon practically the same basis as the matter and have done actual work for the heretofore, the most important development purpose of adding to their par list. being the conclusion of an agreement with the Government of Argentina whereby funds up Clearing membership in Federal Reserve system for the year 1917. to $40,0GG,QQ0maybe deposited with the Federal Reserve Bank of New York as a basis for the Memberbanks. furnishing of exchange upon Argentina. This District- Month endingarrangement contemplates the exportation Increase or Per cent. of gold to that country, should such shipment Jan. 15. Dec. 15. decrease. be desired, immediately after the close of the war. Arrangements have also been completed Boston. 402 399 13 10.75 for the establishment of an additional Indian N Ph e i w la d Y e o lp rk hia - 6 63 2 2 3 6 6 2 5 8 1 12 4 8 1 4 . . 4 6 9 3 Cleveland 752 763 11 1.46 credit of 10,000,000 rupees, which sum has Richmond... 521 529 8 1.53 Atlanta.. . . . 389 391 2 . 51 been distributed to importers in proportion to Chicago 1,044 1,084 40 3.84 St. Louis... 468 479 11 2.35 their needs through the Federal Reserve Bank of Minneapolis 707 773 66 9.33 Kansas City 943 959 16 1.70 New York. Other negotiations for the work- Dallas 619 633 14 2.26 San Francisco 522 534 12 2.30 ing out of exchange arrangements with the Total 7,622 7,823 208 2.73 governments of various countries to which gold would otherwise be shipped in settle- Nonmember banks. ment of international balances are expected District. Month endingshortly to be brought to a conclusion, and it Increase or Per cent. is believed will result in avoiding the necessity Jan. 15. Dec. 15. decrease. of transferring specie. In the following table are set forth data Boston 242 242 (2) New York 313 343 30 0.96 showing the increases or de- C Ph le i v la e d la e n lp d hia 2 4 3 9 2 2 3 5 1 6 0 5 7 73 8 3 1 3 4 .8 6 8 2 check°cfearfiig.Of creases in the number of banks A Ri t c l h a m nt o a n .. d 2 4 8 1 6 6 2 3 6 2 6 6 1 1 2 9 0 0 1 1 2 7 1 . . 0 6 0 3 Chicago 1,429 2,331 902 63.13 on the par lists of various Fed- St. Louis 883 997 114 12 91 Minneapolis.. . 1,100 1,033 167 16.09 eral Reserve Banks for the 12 months ending Kansas "City 1,408 1,527 119 8.45 Dallas 221 211 UO 14.53 December 15, 1917. The tabulation shows San Francisco 1,108 1,170 62 5.59 that six districts have made gains during the Total 8,130 9,321 1,191 14.64 period in question, and that of these, three have 1 Decrease. made very substantial progress. One district 2 All banks in Boston district are in the clearing system. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

76 FEDERAL RESERVE BULLETIN. FEBRUARY 1,1918. By the terms of a circular given to the public Exchange Agreement With Argentina. January 28, there has been put It was announced at the Treasury on January changed *& * **' *nto practical operation the | 7 that Secretary McAdoo has concluded through terms of the Executive order of the State Department an arrangement with November 23, 1917, in which provision was the Argentic Government to stabilise exmade for a definite regulation of foreign exchange between the two countries and to change transactions. The new system calls for check the depreciation of the American dollar the creation, under the direction of the Federal on the Argentine market, which had threatened Reserve Board, of a system of regular reports to become a serious obstacle to trade between by all persons engaged in foreign exchange the two countries. business of every description, and will thus Under the arrangement, the Argentine Govenable the Board to maintain a careful overernment revives a law which was passed, immesight or check upon practically the whole exdiately after the outbreak of the European change business of the country. As heretofore war, under which American business men, stated, provision has been made for the immeowing money to Argentine merchants, may dediate installation of this system, and an office posit such amounts with the Argentine ambashas been opened in New York City for the sador, who in turn deposits these amounts in purpose of facilitating the gathering of the current account with the Federal Reserve Bank regular reports which are called for by the new of New York. The Argentine Government plan. Licenses will be regularly issued to agrees that the balance of this account will not applicants under the provisions of the new order, be shipped in gold until after the ratification the text of which is published in this issue on of the treaty of peace ending the present war, pages 81-86. Hitherto there has been nothing and the American Government agrees that no to prevent banks from making remittances acobstacles will at that time be interposed to the cording to their own discretion and judgment, shipment of the said balance in gold. Payexcept in cases where there was reason to supments to the Argentine ambassador are to be pose that the transactions proposed to them on the basis of the relative gold value of the were for account or benefit, direct or indirect, two currencies plus a charge of 3 per cent to of an enemy alien, in which event it was neccover transportation, insurance, and other essary to bring the matter before the War charges. Trade Board. This condition of affairs is now terminated, and the system of licensing, already The arrangement with the Argentine Gov~ referred to, is substituted therefor. The new ernmentpermits such deposits up to $40,000,000 regulations provide that " a dealer shall require with the Argentine ambassador, but it is conevery customer purchasing foreign exchange fidently expected that if this amount proves from him or selling foreign exchange to him, to inadequate, arrangements for increasing the file a statement showing the purpose of such limit can be made with the Argentine Governpurchase or sale with such details as the Fed- ment. eral Reserve Board may require, including a declaration to the effect that no enemy or ally Erratum. of enemy of the United States has any interest On page 5 of the January Bulletin, in paradirectly or indirectly in such purchase or sale. graph headed "Earnings and dividends" it is The Federal Reserve Board shall prescribe the stated that "eight banks have paid their diviform of such declaration. Copies of such statedends to the end of the year 1917. The four rements shall be furnished by such dealer upon maining banks have paid all dividends to June request to the Federal Reserve Board, through 30,1917," etc. This statement should read:" Six the several Federal Reserve Banks," banks have paid full dividends to the end of the Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FEBRUARY 1,1918. FEDERAL RESERVE BULLETIN. 77 year 1917, four to June 30, 1917, and the re- The committee does not expect to deal with maining two banks to the end of 1916.;? cases touching railroad financing, but it will give advice with respect to the sale of securities involving municipal, public utility, and industrial financing. The committee will Priorities in Capital Issues. act in a manner similar to that of the Capital The following statement issued in the Issues Committee in London, which exercises its influence relying upon voluntary cooperamorning papers of January 27, 1918, gives the tion on the part of the banks, bankers, and details of the Board's organization for the overbusiness men of the country. sight of capital issues: For the time being the committee does "not It was learned to-day that the Capital Issues contemplate passing upon individual issues of Committee of the Federal Reserve Board has securities aggregating less than $500,000, in the completed the draft of its general plans of case of industrial and public utility corporations, organization. and $250,000 in the case of municipalities; In Washington, in addition to the three mem- nor upon securities having a maturity of less bers of the Federal Reserve Board whose names than one year. This does not mean that for have heretofore been announced, there will be smaller amounts the committee does not desire an advisory committee consisting of Mr. the cooperation of all concerned. Indeed, it is Allen B. Forbes, senior partner of the firm of considered imperative that a policy of avoiding Harris, Forbes & Co., New York City; Mr. appropriations for unessential expenditures be F. H. Goff, president of the Cleveland Trust adopted by all with the most scrupulous care. Co., Cleveland, Ohio; and Mr. Henry C. Flower, The committee hopes in due course it will be able to devise ways and means to deal also President of the Fidelity Trust Co., Kansas with transactions of smaller scope. ity, Mo. Mr. Forbes will act as chairman of the ad- It is distinctly understood that the committee visory committee. The counsel of the com- will not pass upon the intrinsic merits of indimittee will be Mr. Bradley W. Palmer, of the vidual cases, but only upon the question of firm of Storey, Thorndike, Palmer & Dodge, whether or not the objects for which money Boston. Mr. Stephen L. Selden, at present is to be raised and spent are essential to and identified with the Aircraft Board, will be the compatible with the national welfare at this executive secretary of the committee, in which time. capacity he will be assisted by Mr. James Q. It is the committee's desire that applications Newton, of Denver, Colo. All these have be addressed to it at Washington. From there, offered their services without compensation. if necessary, they will be transmitted for further The advisory committee will have an office local investigation to the respective districts. with the Federal Reserve Board in the Treas- There is no doubt that pending possible ury Building and the staff of the committee action by Congress the committee can count will be located in the Metropolitan Bank upon the heartiest cooperation of all concerned. Building, opposite the Treasury Building. As a matter of fact, it has already received The Capital Issues Committee will organize communications from all parts of the country at each of the twelve Federal Reserve Banks asking for its advice. local committees for the purpose of furnishing With the statement in question the following to the committee such additional information letter was given out for issue in the various and recommendations as the Board may require Federal Reserve districts: in dealing with cases originating in the respective districts. These local committees will con- DEAR SIR.: In order to win the war, it is sist of the chairman of the board and the gov- imperative at this time that goods, credit, and ernor of the respective Federal. Reserve Banks savings be placed at the disposal of the Governand three additional members, particularly ment in the largest possible measure. Any equipped by banking or business experience, unnecessary production or consumption of to serve with these ex officio officers of the goods, and any unnecessary use of credit, saps bank; in addition the Board will approve a list and weakens the fighting strength of the nation. of names of experts and prominent citizens in There is no doubt about the willingness of those localities'" who may be called in as sub- the people of the United States to meet the stitutes or additional advisers for such local Government's requirements generously and committees whenever required. without reserve; but they demand, and are Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

78 FEDERAL BESERVE BULLETIN. FEBRUARY 1,1918. entitled to, guidance as to which industries compatible with the public interest as above and pursuits are to be considered as necessary described. for the best interest of the country, and, In developing its policies as to the various therefore, are to be stimulated, and which, classes of cases involved and in passing upon on the other hand, are to be held as unneces- them individually, the committee expects to sary and, therefore, to be discouraged under seek advice from the various departments and present circumstances. boards at Washington and, in addition, it The problem affects with peculiar force our expects, whenever necessary, to call upon the banking operations because credit improperly chairman and governor of each Federal Reserve granted not only wastes to that extent funds Bank for a local investigation and report, that should be made available to the Govern- authorizing them to invite, from, a list to be ment, but misdirects at the same time the use approved by the Board, not more than three of labor and material which should be devoted men likely to be able to give expert and judicial to our national purposes. advice in the case, to join with them in To bring about a proper control of credit is, particular examination and report. therefore, one of the foremost endeavors of The committee is mindful of the fact that, on nations at war, and it is for this reason that the part of the banks and bankers, there is no European belligerent countries have created legal obligation to submit their cases. It will some central organizations whose duty it is to be an entirely voluntary act by them. The state authoritatively whether or not the sale committee has no doubt, however, that it may of securities (stocks or bonds or notes) is in the count upon their single minded patriotic public interest, no securities being placed by cooperation. The committee hopes that before voluntary agreement or by act of lav/, except offering for sale stocks, bonds or notes of with the approval of these bodies. corporations in amounts of $500,000 and above, In a letter dated January 11, 1918, Secretary and in the case of States, counties, and munici- McAdoo invited the Federal Reserve Board: palities of $250,000 and above, advice will be "as another patriotic service to assume the sought from it as to whether such sale at the responsibility of passing upon such proposals time will be held to be compatible with the as may be submitted to them in respect to public interest. While the committee will be capital expenditures or issues of new securities.77 glad to give advice to the best of its knowledge At the same time, the Secretary issued a and ability in all questions of credit submitted public statement, which is printed below. to it, it does not in general expect to pass upon The Board, acting upon this letter, passed a notes having less than one year to run. resolution accepting this charge, appointing You are requested to bring this letter to the three of its members, Messrs. Warburg, Hamlin, notice of the banks and investment houses of and Delano, to act as a Capital Issues Com- your district and to invite their cordial mittee, authorizing the committee to engage cooperation. the necessary staff and to appoint an expert Application forms are in course of preparaadvisory committee to assist it in investigating tion, and they should be addressed to Federal and passing upon all cases that would come Reserve Board, Capital Issues Committee, before it. Washington, D. C." Messrs. Allen B. Forbes, senior partner of the Very truly, yours, firm of Harris, Forbes & Co., New York City; PAUL M. WARBURG, F. H. Goff, president of the Cleveland Trust Chairman, Capital Issues Committee. Co., Cleveland, Ohio; and Henry C. Flower, president of the Fidelity Trust Co., Kansas The statement issued by the Secretary of City, Mo., were then invited to become members the Treasury, referred to above, is as follows: of the advisory committee, and in a fine spirit of patriotism, they have agreed to serve in this "In my annual report to Congress, dated capacity. The committee will not pass upon December 3, 1917, I referred to the importthe intrinsic merit of securities to be offered for ance at this time of avoiding unnecessary capisale; it will only examine into two questions: tal expenditures in both public and private (1) Whether the offer is timely with respect enterprises. While no specific authority has to the financial operations to be undertaken by been conferred upon me to approve or disapthe Government from time to time, and prove new undertakings, a number of corpo- (2) Whether the objects for which the funds ration executives, bankers, and municipal offiare to be raised by the offer of securities are cials, inspired by the idea that they should do Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FEBRUARY 1,1918. FEDEBAL RESERVE BULLETIN. 79 nothing which, would in any way retard our transmission of the report, the following stateefforts in the prosecution of the war, have ment, intended briefly to summarize some of submitted to me plans for new enterprises or the salient features of the document, was new issues of securities. made public: Ji$ "It is now apparent that the Government may count upon a full measure of cooperation War's effect upon national finance and bankon the part of the States, municipalities, and ing is reflected in the fourth annual report of private corporations, with the result that a the Federal Reserve Board, transmitted to the large number of such plans for future develop- Speaker of the House of Representatives on ments will be submitted from time to time. Tuesday, January 22. The Board reviews It therefore becomes necessary that each of the conditions brought about by the great these proposals receive adequate considera- growth of foreign trade and the various meastion and that a recommendation be made ures intended to remedy resulting difficulties without delay as to the course to be pursued. or forestall dangers that have been put into "Pending action by Congress, I have re- effect in consequence. Chief among the latter quested the Federal Reserve Board to pass are the provision of a large supply of Federal upon such proposals as may be submitted to Reserve notes,, which were provided and conthem or referred to them by me, and advise veniently stored early in the year 1917, the whether or not such expenditures of capital development of numerous expedients for the or such issues of new securities should be conservation of the gold supply, and the apmade. The Board has consented to under- plication of the amendments of June 21, 1917, take this responsible work, and I therefore to the Federal Reserve act, for the purpose, of strongly urge upon the corporations and the enlarging reserves and strengthening the lendbankers of the country, that before making ing power of the several banks. contracts requiring the use of labor and ma- The Board calls attention to the effect of terial, or before placing new issues of securi- the war upon the banking and credit situaties or agreeing to purchase new issues of se- tion, both public and private, pointing out the curities, they confer with the Federal Reserve rise in prices, but emphasizing the fact that Board in order that it may determine whether while during the year 1917 there has been the undertaking covered by the proposals is a lessening of the fluidity and availability of necessary for the public health and welfare, the country's banking resources the change is or contributes directly toward winning the not surprising in view of the heavy requirewar, ments. It also points out that these changes "This is not alone a question of capital, but in prices are not necessarily due to alterations of material and labor. Public improvements in the banking position, but that abnormal or new private enterprises which in time of demands and the withdrawal of labor and peace might be entirely proper, should now capital have had an important and far-reaching be considered in the lignt of, or in connection effect. "Banking expansion," the Board says, with, the great Governmental problems arising "is an unavoidable incident of war finance, but out of our military necessities. I am confident every effort should nevertheless be made to that I can count upon the cordial cooperation counteract it so far as possible by eliminating of all concerned in this great work of conserv- banking credit not clearly needed for the puring our capital resources, so that we may devote pose of purchasing or carrying goods necessary them primarily to bringing victory and peace." for the life of a nation at war." From the standpoint of the private individual it is noted that the effect of the Government's borrowing on a large scale has been to withdraw from Annual Report of the Federal Reserve Board. the market a large proportion of the funds normally available for other loans. This tend- The Federal Reserve Board transmitted to ency has resulted in an effort to make paper the Speaker of the House of Representatives ordinarily regarded as ineligible available for rediscount at Federal Reserve Banks. The on January 22 its fourth annual report. As policy of the Board, however, has invariably usual this report, with exhibits and statistics been to refuse such applications and to mainattached thereto, and including the reports of tain the liquid character of bank assets. Federal Reserve agents, will be transmitted to "Under no circumstances," says the report, every member bank. Simultaneously with the "can the Board admit the eligibility of pa- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

80 FEDEBAL RESERVE BULLETIN. FEBRUARY 1,1918. p # * * which in its essential character present conditions only a minority of all banks er fails to conform to sound banking principles.77 entitled to vote are taking an active part in The report, however, suggests early considera- the selection; a change in the denominations tion by Congress of the problem of corporate of Federal Reserve notes intended to permit financing, in the belief that no satisfactory the issue of large bills; a change in the terms solution of the general corporate and credit of section 22, which relates to transactions problem will be found that does not involve between directors and their respective banks; some degree of government intervention. The the amendment of section 25 designed to Board is of the opinion that some plan for provide for the incorporation under Federal such intervention or aid can be worked out Reserve charter of banks for foreign trade, and that will meet the situation satisfactorily. the amendment of section 25 to permit the One effect of the war has been to enlarge the establishment of branches of national banks earning power of the Federal Reserve Banks in the cities where such banks are located. in a very material degree. The gross earnings In closing, the Board calls attention to the are given as $15,800,000 and the net earnings as fact that due to the concentration of reserves $11,200,000. The dividends declared during the Federal Reserve system is to-day the the year are about $6,800,000. Six of the ultimate resource of the business and financial banks have paid their dividends completely community and that its position as such is up to the end of the year 1917, while four others unquestionable. The responsibility thus laid have paid up to June 30, 1917, and the remain- upon it emphasizes the necessity of making ing two have paid to the end of the year 1916. sure that every policy adopted must be devel- Although the banks are not operated pri- oped with the view of maintaining and strengthmarily for profit, the Board calls attention to ening the financial position of the country and the fact that during the coming year their of providing for the readjustments to follow earnings will undoubtedly be large, and that the war. a substantial franchise tax will be paid to the Government out of excess earnings. The amount paid this year to the Government is Acceptances to 100 Per Cent. $1,134,234. In connection with the management of the banks the Board explains that The Second National Bank, New York City, the events of the past year have done much the Corn Exchange National Bank, Philadelto bring into their proper relationship the phia, Pa., and the Bank of the Manhattan Co., several elements of the Federal Reserve sys- New York City, during the month have been tem, and that the position of the Board as the foverning body of all the banks is now well granted authority by the Federal Reserve efined, the line of distinction between the Board to accept drafts and bills of exchange local managements of each institution and the up to 100 per cent of their capital and surplus. general policies of the system growing more and more marked. Among the activities of the year that are incidentally described are Fiduciary Powers. the further extension and development of the clearing and collection system and the con- The applications of the following banks for tinuation of work under the Clayton Act, perpermission to act under section 11 k of the mits for service as directors being granted in 182 cases. Applications for fiduciary powers Federal Reserve act have been approved since have been granted in 112 cases. the issue of the January Bulletin: The expense of conducting the work of the Board during the year has been a little less DISTRICT No. 1. than $250,000, including all salaries, while the Trustee, executor, and administrator: cost of the gold-settlement fund for the year National Bank of Bellows Falls, Bellows Falls, Vt. has been about $3,500, or $0,013 per $1,000. Trustee: While no far-reaching amendments to the City National Bank, Berlin, N. H. Federal Reserve act are recommended, a number of minor changes are suggested for the DISTRICT No. 8. consideration of Congress. Among these is a Trustee, executor, administrator, and registrar of stocks change in the present method of electing and bonds: directors called for by the fact that under Firat National Bank, Greenville, Miss. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FEBRUARY 1,1918. FEDERAL EESEBVE BULLETIN. 81 DISTRICT No. 5. within the United States, and I further vested in the Secretary of the Treasury the authority and power to require Trustee, executor, administrator, and registrar of stocks any person engaged in any such transaction to furnish, and bonds: under oath, complete information relative thereto, includ- Commercial National Bank, High Point, N. 0. ing the production of any books of account, contracts, DISTRICT NO. 6. letters, or other papers in connection therewith in the custody or control of such person, either before or after Trustee, executor, administrator, and registrar of stocks such transaction is completed; and and bonds: Whereas by said Executive order, dated October 12, First National Bank, Canton, Miss. 1917, I authorized and directed the Secretary of the DISTRICT NO. 7. Treasury for the purpose of such executive adminietra Trustee, executor, and administrator: tion to take such measures, adopt such administrative pro- German American National Bank, Arlington, Iowa. cedure, and use such agency or agencies as he may from time to time deem necessary and proper for that purpose Home National Bank, Thorntown, Ind. and DISTRICT No. 8. Whereas the Secretary of the Treasury, with the ap- Trustee, executor, administrator, and registrar of stocks proval of the President, by order dated November 23, and bonds: 1917, adopted certain administrative procedure for the Third National Bank, St. Louis, Mo. executive administration, authority and power vested in the Secretary of the Treasury by said Executive order, DISTRICT NO, 9. dated October 12, 1917, and designated the Federal Re- Trustee, executor, administrator, and registrar of stocks serve Board to act as the agency of the Secretary of the and bonds: Treasury, subject to the approval of the Secretary of the Merchants National Bank, Billings, Mont. Treasury, to carry out such executive administration, authority, and power vested in the Secretary of the Treasury as hereinbefore recited: Now, therefore, upon the recommendation of the Sec- Regulation of Foreign Exchange. retary of the Treasury, and in order to vest all necessary authority in the Federal Reserve Board to act as the agency Following is the text of an Executive order of the Secretary of the Treasury, in the performance of signed by the President on January 26, 1918, the duties hereby imposed upon it, I hereby prescribe the prescribing rules and regulations under section following orders, rules, and regulations in respect of such 5 of the trading-with-the-enemy act and sup- executive administration, authority, and power, and I plementing rules and regulations heretofore hereby amend the regulations heretofore prescribed by said Executive order, dated September 7, 1917, as herein prescribed under title 7 of the espionage act. provided. Whereas by virtue of the authority vested in me by the DEFINITIONS. act approved June 15, 1917, known as the espionage act, I directed by Executive order, dated September 7, 1917, PERSON. that the regulations, orders, limitations, and exceptions The term person as used herein shall be deemed to mean prescribed by me in relation to the export of coin, bullion, an individual, partnership, association, company, or other and currency should be administered by the Secretary of unincorporated body of individuals or corporation or the Treasury, and upon his recommendation prescribed body politic. certain regulations in relation thereto; and DEALER. Whereas by Executive order, dated October 12, 1917, The term dealer as used herein shall be deemed to mean made under authority of the act aforesaid and of the act any person engaged primarily or incidentally in the busiapproved October 6, 1917, known as the trading-with-theness (1) of buying, selling, or dealing in foreign exchange, enemy act, I vested in the Secretary of the Treasury the or (2) of buying, selling, or dealing in securities for or executive administration of any investigation, regulation, through, foreign correspondents, or (3) any person who caror prohibition of any transactions in foreign exchange, cies accounts or securities with or for foreign correspondents. export, or earmarking of gold or silver coin or bullion or currency, transfers of credit in any form (other than DEALERS OP CLASS A. credits relating solely to transactions to be exceuted Dealers who engage in the business of buying, selling, wholly within the United States) and transfers of evidences or dealing in foreign exchange, or of buying, selling, or of indebtedness or of the ownership of property between dealing in securities for or through foreign correspondents, the United States and any foreign country or between and who may or may not carry accounts or securities residents of one or more foreign countries by any person 37528—18 3 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

82 FEDERAL RESERVE BULLETIN. FEBRUARY 1,1918. with or for foreign correspondents shall be known as the ownership of property between the United States dealers of Class A. and any foreign country, whether enemy, ally of enemy, or otherwise, or between residents of one or more foreign DEALERS OF CLASS B. countries, by any person within the United States, except any such transactions or transfers conducted in conform- Dealers who carry accounts or securities with foreign cority herewith, are hereby prohibited. respondents or who buy, sell, or deal in securities through such correspondents but who do not carry accounts or TRANSACTIONS IN FOREIGN EXCHANGE OR IN SECURITIES securities/or foreign correspondents and who do not engage FOR OR THROUGH FOREIGN ACCOUNT. in the business of buying, selling, or dealing in foreign CERTAIN PERSONS REQUIRED TO OBTAIN REGISTRATION exchange or of buying, selling, or dealing in securities CERTIFICATES. for foreign correspondents shall be known as dealers of Class B. No person, other than a customer, shall, after February 10, DEALERS OF CLASS C. 1918, engage in any transaction or make any transfer described in the next preceding subdivision hereof who shall Dealers who carry accounts or securities for foreign not have obtained, on or before that date, a registration correspondents or who buy, sell, or deal in securities for certificate, as hereinafter provided. such correspondents but who do not carry accounts or Every person who is a dealer upon the date hereof, as securities with foreign correspondents and who do not en- promptly as possible and in any event on or before gage in the business of buying, selling, or dealing in foreign January 31, 1918, shall file, with the Federal Reserve exchange or of buying, selling, or dealing in securities Board, through the Federal Reserve Bank of his district, through foreign correspondents shall be known as dealers an application for a registration certificate. Such applicaof Class C. tion shall be in form approved by the Federal Reserve FOREIGN EXCHANGE. Board and shall show the character of business engaged in and whether or not an enemy or ally of enemy of the The teimforeign exchange as used herein shall be deemed United States or any subject or citizen of an enemy or to mean checks, drafts, bills of exchange, cable transfers, ally of enemy, wherever resident or domiciled, has any or any form of negotiable or assignable instrument, or interest directly or indirectly in such business. Such order used (a) to transfer credit or to order the payment of application shall embody an agreement on the part of the funds in any foreign country, or (6) to transfer credit or applicant to comply with the regulations of the Federal to order the payment of funds within the United States Reserve Board, and to permit the inspection at any time for foreign account. of his books and accounts and to make reports as and when required on forms to be approved by the Federal Reserve SECURITIES. Board. The term securities as used herein shall be deemed to The Federal Reserve Board may issue to such applicant mean all evidences of ownership of property not included the appropriate registration certificate in form approved in the foregoing definition of foreign exchange. by it, entitling the holder to engage in the class or classes of foreign exchange or other transactions specified in such CORRESPONDENT. certificate, subject to all applicable provisions of law and The term correspondent as used herein shall be deemed to such Executive orders of the President and administrato mean any person who acts as the agent of, or for, or on tive regulations as shall have been issued or may from time behalf of, or as the depositary of, another person, or any to time be issued by the Federal Reserve Board. person who is the principal for, or on behalf of, whom Any person who is not a dealer at the date hereof but another person acts as agent. who hereafter desires to become a dealer must first obtain a registration certificate. CUSTOMER. Any person, other than a customer, who does not desire to become a dealer but who nevertheless desires to engage The term customer as used herein shall be deemed to in one or several transactions or to make one or several mean any person other than a dealer who buys foreign transfers described in the next preceding subdivision exchange from a dealer or sells foreign exchange to a dealer. hereof, may be permitted by the Federal Reserve Board, in its discretion, to engage in any such transaction or to TRANSACTIONS IN FOREIGN EXCHANGE AND CERTAIN make any such transfer without first obtaining a registra- OTHER TRANSACTIONS PROHIBITED EXCEPT AS HEREIN tion certificate, and the Federal Reserve Board may like- AUTHORIZED. wise waive any requirement hereof, other than any which All transactions in foreign exchange, export or earmark- relates to trading with an enemy or ally of enemy, whenever ing of gold or silver coin or bullion or currency, transfers of it is satisfied that such waiver is not incompatible with the credit in any form (other than credits relating solely to best interests of the United States. transactions to be executed wholly within the United Nothing herein shall be construed to abrogate or modify States) and transfers of evidences of indebtedness or of any existing requirement that licenses shall be obtained Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FEBRUARY 1,1918. FEDEKAL RESERVE BULLETIN. 83 from the War Trade Board in respect of any transaction which are not included in the reports of such correspondwith, or for account of, an enemy or ally of enemy, or any ents but may be called upon for any information in regard person acting for, or on behalf of, or for the benefit of, an thereto desired by the Federal Reserve Board, and shall enemy or ally of enemy. keep all books and records in a manner which will make it possible to furnish such information. REVOCATION OF REGISTRATION CERTIFICATES. SPECIAL REPORTS. Any or all such registration certificates may be revoked at any time by direction of the Secretary of the Treasury Whenever any holder of a registration certificate shall or of the Federal Reserve Board. have reason to believe that any transaction within his knowledge involves or may involve directly or indirectly BOOKS AND ACCOUNTS. the payment of funds or delivery of securities to or the Each Federal Reserve Bank through which any such transfer of credit or securities for the benefit of an enemy registration certificate shall be issued shall furnish to the or ally of enemy, or which may involve any other transapplicant copies of all forms of reports required, and the action with an enemy or ally of enemy, he shall immebooks and records of such applicant shall thereafter be diately report the facts and circumstances to the Federal kept in a manner which will make it possible to furnish Reserve Board through a Federal Reserve Bank. information called for in such reports without delay. FILING AND VERIFICATION OF REPORTS. GENERAL REPORTS. All reports, statements, and declarations herein required, After obtaining a registration certificate, each holder unless otherwise specified, shall be filed with the Federal thereof shall file with the Federal Reserve Bank through Reserve Board through the Federal Reserve Banks. which such certificate shall be issued a report on forms to Any or allsuchreports, statements, or declarations shall, be furnished by the Federal Reserve Board, showing all in the discretion of the Federal Reserve Board, be verified accounts or securities carried with or for foreign correspond- by oath of the person making same. ents as of the close of business on January 30, 1918, or on such other date as the Federal Reserve Board may EXAMINATIONS. require, and such other information as may be called for The books and records of all dealers must at all times on such forms and shall thereafter file with the Federal be open to inspection by examiners designated by the Reserve Board, through such Federal Reserve Bank, on Federal Reserve Board. dates specified by the Federal Reserve Board, reports showing all changes in such accounts and all purchases, DECLARATION OF FOREIGN CORRESPONDENT TO BE sales, and other transactions in foreign exchange or secu- OBTAINED BY HOLDERS OF REGISTRATION CERTIFIrities/or or through foreign correspondents. CATES. CUSTOMERS' STATEMENTS. After dates to be fixed by the Federal Reserve Board A dealer shall require every customer purchasing foreign in respect of each foreign country, respectively, no holder exchange from him or selling foreign exchange to him, to of a registration certificate shall engage in transactions file a statement showing the purpose of such purchase or with y through, or for any foreign correspondent in such sale with such details as the Federal Reserve Board may foreign country unless he shall have obtained from such require, including a declaration to the effect that no correspondent a declaration to the following effect: enemy or ally of enemy of the United States has any Having arranged with to act as interest directly or indirectly in such purchase or sale. [Holder of registration certificate.] The Federal Reserve Board shall prescribe the form of such the agent or correspondent in the United States for, or on behalf of, the declaration. Copies of such statements shall be furnished undersigned, under regulations issued by the appropriate authorities of the United States Government and/or the undersigned having agreed by such dealer upon request to the Federal Reserve to act as the foreign correspondent of the said Board, through the several Federal Reserve Banks. I/we do hereby declare that I/we will not deal or attempt to deal, directly or indirectly, with said agent or correspondent in any transaction for REPORTS MADE THROUGH DOMESTIC CORRESPONDENTS. or on account of, or for the benefit of, an enemy or ally of enemy of the United States, and will not make available for the use of an enemy or Dealers to whom registration certificates have been ally of enemy of the United States any funds or property received or issued, and who buy, sell, or deal in foreign exchange credits established as a result of any transaction engaged in with or through domestic correspondents (for example, banking or through said agent or correspondent, and will not transmit to said agent or correspondent for collection or credit any negotiable instrument other institutions located in the United States), unless bearing the signature or indorsement of an enemy or ally of enemy of otherwise directed by the Federal Reserve Board, shall the United States. arrange with such correspondents to include such trans- The words "enemy" and "ally of enemy" are used herein as now or hereafter defined by laws of the United States or by proclamation of the actions in the reports of such correspondents. President of the United States. Such dealers will be required to report to the Federal NOTE.—If foreign correspondent is incorporated this certificate must Reserve Board only those foreign exchange transactions be executed by a duly authorized officer of such corporation. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

84 FEDEKAL BESEEVE BULLETIN. FEBEUAEY 1,1918. SUSPENSION OF RELATIONS WITH FOREIGN CORRESPOND- Provided, however, that any holder of a Class A or Class C ENTS. registration certificate may collect maturing obligations and coupons, checks, or drafts issued for dividends or If any foreign correspondent of a dealer in the United interest for account of a person resident in a foreign coun- States or any person proposing to become Ithejfforeign try, without making such declaration, if such holder has correspondent of a dealer in the United States, shall refuse filed with the Federal Reserve Board a similar declaration or fail to make the foregoing declaration as herein required, executed by the person for whom collection is made. or if the Federal Reserve Board shall have reason to believe that any such foreign correspondent or any such INTEREST OR DIVIDEND CHECKS PAYABLE FOR FOREIGN ACperson is dealing or trading withfanjenemy or ally, of COUNT. enemy of the United States, contrary to the provisions of Every person issuing checks or drafts for interest or divithe declaration of noninterest of|enemies, herein required, dends after January 26, 1918, payable to any foreign or if in the judgment of the Federal Reserve Board the Government or to any person resident in a foreign country best interest of the United States requires such action, it shall attach to or shall print on the back of such check or may prohibit any dealer or dealers in the United States draft the following statement: from engaging in any transaction with, through, for, or on behalf of such correspondent or such person. This check or draft will not be paid unless the following declaration is executed by the person to whom it is sent for collection by the payee, SUSPENSION OF TRANSACTIONS. or his agent, or by the person who acts as the agent in the United States for the payee. Whenever the Federal Reserve Board shall have reason From actual personal knowledge, or in reliance upon declarations or to believe that any transaction in foreign exchange or any affidavits furnished the undersigned by the parties in interest, I/we do transfer of securities carried with or for a foreign corre- hereby expressly declare that no enemy or ally of enemy of the United States is directly or indirectly interested in the proceeds of this check spondent involves or may involve trading with an enemy, or draft and that such proceeds willnot be made available for the use of an or ally of enemy, or in its judgment is incompatible with enemy or ally of enemy of the United States; that the stock upon which the best interest of the United States, it may cause notice this dividend is paid (or the obligation upon which this interest is paid) to be served on the parties in interest to postpone the Is not and has not been owned by or held for account of an enemy or ally of enemy of the United States since January 26,1918, and has not been consummation of such transaction for a period of 90 days purchased by the present owner from an enemy or ally of enemy or from pending investigation of the facts, and upon investigation a person acting for or on behalf of or for the benefit of an enemy or ally of if the Federal Reserve Board is of the opinion that the enemy since February 3,1917. best interests of the United States require such action it DEALINGS IN SECURITIES FOR OR THROUGH FOREIGN ACmay prohibit the consummation of such transaction. COUNT. The Secretary of the Treasury may likewise prohibit the consummation of any such transaction by notice served No person shall purchase, sell, or deliver any securities onjthe parties in interest (either directly or through the for account of any foreign Government, or for account of any person resident in a foreign country, unless such Gov- Federal Reserve Board) in any case in which in his ernment or such person, as the case may be, shall have made judgment|the best interests of the United States require a declaration, in form approved by the Federal Reserve such action. Board, similar in effect to that required in the case of the SPECIAL PROVISIONS ASJTO COLLECTION OF DIVIDENDS, collection of maturing obligations, for account of a foreign INTEREST, OR MATURING OBLIGATIONS FOR FOREIGN Government or person resident in a foreign country. ACCOUNT. PROCEDURE WHERE DECLARATION OF NONINTEREST OF Every person presenting for collection maturing obliga- ENEMY OR ALLY OF ENEMY CAN NOT BE MADE. tions, or coupons, checks, or drafts issued for dividends or interest, for account of any foreign Government or person Any person who is unable to make a declaration of nonresident in any foreign country, shall make a declaration interest of enemy or ally of enemy required hereunder in form approved by the Federal Reserve Board, to the may apply to the Federal Reserve Board for a waiver of effect that such collections are not made for, or on behalf such declaration, submitting to such board all facts and of, or for the benefit of, any enemy or ally of enemy^that circumstances relating to the transaction involved which the proceeds of such collections will not be made available are in the possession of the applicant. If upon investilor any enemy or ally of enemy; and that the maturing gation the Federal Reserve Board shall determine that obligations, or the obligations and stocks upon which divi- there is no reason to believe that any enemy or ally of dends or interest are to be paid, are not the property of any enemy is directly or indirectly interested in the transacenemy or ally of enemy; have not been owned by, or held tion involved, and that its consummation will not be ior the account of, any enemy or ally of enemy, since incompatible with the best interests of the United States, January 26, 1918, and were not purchased by the pres- it may permit the transaction to be consummated without ent owner from any enemy or ally of enemy or from the declaration herein required. If the Federal Reserve any person acting for or on behalf of or for the benefit of an Board shall have reason to believe that an enemy or ally ©nemy or ally of enemy since February 3,1917. of enemy is or may be directly or indirectly interested in Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FEBRUARY 1,1918. FEDEKAL KESEBVE BULLETIN. 85 the transaction, it shall transmit to the War Trade Board APPLICATIONS FOR REGISTRATION CERTIFICATES AND all records in the case for such action as that board may EXPORT LICENSES, PROVIDED FOR HEREUNDER, BY determine to be necessary. PERSONS RESIDING IN ANY DEPENDENCY OF THE UNITED STATES. EXPORT AND EARMARKING OF COIN, BULLION, OR CUR- RENCY. Applications to the Federal Reserve Board either for registration certificates or for licenses to export coin, The following regulations prescribed by Executive bullion or currency may be made by persons residing in order, dated September 7, 1917, shall continue in force any dependency of the United States (including the as herein amended. Philippine Islands, Alaska, Guam, Hawaii Porto Rico, s Any person desiring to export from the United States or Virgin Islands, and Canal Zone) through such agency any of its territorial possessions to any foreign country located in any such dependency as may be hereafter named in the proclamation dated September 7, 1917, any designated by the Federal Reserve Board, instead of coin, bullion, or currency, shall first file an application in through a Federal Reserve Bank; but until an agency has triplicate with the Federal Reserve Bank of the district been so designated in any such dependency, persons in which such person is located for a special or general residing therein may make such applications through any license. Applications filed must contain statements under Federal Reserve Bank. The Federal Reserve Board may oath and showing in detail the nature of the transaction, from time to time postpone, in respect of any one or more the amount involved, the parties directly and indirectly of such dependencies, the date on and after which persons interested, and such other information as may be of asresiding therein shall be prohibited from engaging in any sistance to the proper authorities in determining whether of the transactions or making any transfer hereinbefore the exportation for which a license is desired will be comprohibited without having obtained registration certifipatible with the public interest. All such applications cates, in case such registration certificates can not be obshould be made on the standard form prescribed by the tained on or before the date hereinbefore specified. Federal Reserve Board. Each Federal Reserve Bank shall keep a record copy of (Signed) WOODROW WILSON. each application filed with it under the provisions of this The WHITE HOUSE, 26 January, 1918. regulation and shall forward the original application and a duplicate to the Federal Reserve Board at Washington, together with such information or suggestions as it may The following forms were approved by the believe proper in the circumstances, and shall in addition make a formal recommendation as to whether or not, in Federal Reserve Board in connection with the its opinion, the exportation should be permitted. above Executive order: The Federal Reserve Board, subject to the approval of (Form FE 107. Application for registration certificate.) the Secretary of the Treasury, is hereby authorized and of hereby makes empowered, upon receipt of such application and the application for a Class.. registration certificate to be issued under authorrecommendation of the Federal Reserve Bank, to make ity of Executive order of the President, dated January 26,1918, made such ruling as it may deem proper in the circumstances; by virtue of the authority vested in the President by the act of Congress and if, in its opinion, the exportation in question be com- approved June 15, 1917, known as the Espionage Act, and the act approved October 6,1917, known as the Trading-with-the-Enemy Act. patible with the public interest, to permit said exportation The applicant expressly undertakes and agrees, in consideration of the to be made; otherwise to refuse it. issuance of the certificate applied for, (a) that all books and records No gold or silver coin, or bullion, or currency shall be relating to any transaction engaged in under authority of such certificate shall be open at all times to inspection by the examiners designated by set aside and earmarked for safekeeping for any person the Federal Reserve Board; (6) that all reports required under regulawithout the written approval of the Federal Reserve tions of the Federal Reserve Board will be promptly furnished on forms Board. approved by the Federal Reserve Board; (c) that all transactions engaged in under authority of this certificate will be conducted in accord- LICENSES FROM WAR TRADE BOARD IN TRANSACTIONS ance with regulations now or hereafter made by the Secretary of the Treasury or by the Federal Reserve Board, and with such Executive INVOLVING TRADING WITH AN ENEMY OR ALLY OP orders as the President may have issued or may hereafter issue. ENEMY. It is expressly represented to the Federal Reserve Board that the Applications to the Federal Reserve Board for permis- business engaged in by the applicant is ; sion to export or earmark gold or silver coin or bullion or that no enemy or ally of enemy and no subject or citizen of an enemy or currency shall be accompanied by a certified copy of a ally of enemy has any interest directly or indirectly in the business of license issued by the War Trade Board, whenever any such the applicant except as shown on statement accompanying and forming part of this application, marked Exhibit A. transactions involve or may involve trading directly or IN!WITNESS WHEREOF, this application is executed this day indirectly with an enemy or ally of enemy or with any Of ,191... person acting for, or on behalf, of, or for the benefit of, an To the FEDERAL RESERVE BOARD, enemy or ally of enemy. Washington, D. C. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

86 FEDEBAL BESEBVE BULLETIN. FEBRUARY 1,1918. NOTE.—Exhibit A should consist of a copy of report, if any, made to (Form FE 110. Registration certificate, class C.) the Alien Property Custodian in compliance with the provisions of the This is to certify that of... is entitled to Trading-with-the-Enemy Act, with such additional information as the (1) carry accounts or securities for foreign correspondents, and to engage circumstances may require. in the business of (2) buying, selling, or dealing in securities for foreign RECOMMENDATION OF FEDERAL RESERVE BANK. correspondents. All such transactions shall be subject to all applicable provisions of law The foregoing application has been examined and it is recommended and to such Executive orders of the President and administrative regthat the certificate applied for I ulations of the Secretary of the Treasury or of the Federal Reserve Board as have been or may hereafter be issued. This certificate does not entitle the holder to engage in the business of (a) buying, selling, or dealing in foreign exchange; or of (6) buying, selling, or dealing in securities through foreign correspondents; or to (c) carry accounts or securities with foreign correspondents. This certificate does not entitle the holder to engage in any transaction (Form FE 108. Registration certificate, Class A.) which involves or may involve directly or indirectly trading with an enemy or ally of enemy of the United States, and is subject to revocation This is to certify that , of at any time by order of the Secretary of the Treasury or of the Federal is entitled to engage in the business of: (1) Buying, selling, or dealing Reserve Board. in foreign exchange; (2) buying, selling, or dealing in securities for for- Issued under authority of Executive order of the President, dated eign correspondents; and (3) buying, selling, or dealing in securities January 26,1918, made by virtue of the authority vested in the President through foreign correspondents; and is entitled to (4) carry accounts ofby the act of Congress approved June 15,1917, known as the espionage secutities/or foreign correspondents; and to (5) carry accounts or securi- act and the act approved October 6,1917, known as the trading-withties with foreign correspondents. All such transactions shall be subject the-enemy act. to all applicable provisions of law and to such Executive orders of the FEDERAL RESERVE BOARD, President and administrative regulations of the Secretary of the Treasury By . or of the Federal Reserve Board as have been or may hereafter be issued. Governor. This certificate does not entitle the holder to engage in any transaction Countersigned: which involves or may involve directly or indirectly trading with an enemy or ally of enemy of the United States, and is subject to revocation at any time by order of the Secretary of the Treasury or of the Federal(Form FE 113. Declaration of noninterest of enemies to be filed by Reserve Board. foreign correspondents or persons acting for foreign correspondents.) Issued under authority of Executive order of the President, dated January 2fi, 1918, made by virtue of the authority vested in the President From actual personal knowledge, or in reliance upon declarations or by the act of Congress approved June 15,1917, known as the Espionage affidavits furnished the undersigned by the parties in interest, I/we do Act, and the act approved October 6,1917, known as the Trading-with- hereby expressly declare that no enemy or ally of enemy of the United the-Enemy Act. States is directly or indirectly interested in the transaction described below; that the property or evidence of indebtedness involved therein FEDERAL RESERVE BOARD, is not and has not been owned by, or held for the account of an enemy By. or ally of enemy of the United States since , 1918; that Governor, Countersignature: such property or evidence of indebtedness has not been purchased by the present owner from an enemy or ally of enemy of the United States or from any person acting for or on behalf of or for the benefit of an enemy or ally of enemy of the United States since February 3,1917, and that the funds derived from the transactions described herein will not be (Form FE 109. Registration certificate, class B.) made available for the use of an enemy or ally of enemy of the United States. The words "enemy" and "ally of enemy" are herein used This is to certify that of is entitled to as now or hereafter defined by the laws of the United States, or by (1) carry accounts or securities with foreign correspondents, and to proclamation of the President of the United States. engage in]the business of (2) buying, selling, or dealing in securities through NOTE.—If the transaction is engaged in by a corporation the foregoing foreign correspondents. declaration must be executed by a duly authorized officer. '^ All such transactions shall be subject to all applicable provisions of law andtosuchExecutive>rders:of the President and administrative regulations of the Secretary of the Treasury or of the Federal Reserve Board Transaction referred to in and made a part of the foregoing as have been or may hereafter be issued. declaration. This certificate does not entitle the holder to engage in the business of (a) buying, selling, or dealing in foreign exchange; or of (&) buying, Other Nature of selling, or dealing in securities for foreign correspondents, or to (c) carry transaction; party to Foreign cora e a w R n c t e h T I c e a s s i o m h c n e s u u i r h y y s n v e t e i c t d o s n i e m r B v r o u t a o o e r i n l f l a l s i v d b y c r e e e d a y c o s r t . u e f o o r a e r i d u r t d n i o t e e e m h e r s m o s a o f p r y o y f i i r t o o t y i f h n t f o e v e o t r h o e n f S i e l t g v e i E t n U c e l x r e c n e e d o t t i c i h a t r r u e r r e e t d y e c i h s v t S o p l o e y o f t l a d n t o t o e h d e r r r d e s e t e i n a o T n r t n s d r e d . o e n ir a f g i e s s a c t u g h s t r l u e e y y b i j P o n t e r r r c a a e t d o n s i t f i y n o d t g t e h r r e n e a w v t n , F o s it c e a d h a d c a t t e t i a i e o r o n a d n n l Date. i P n d n v o r d e e o o r n e s l p c v b s e e e v e t i e r d i n t o - d y . - f - s o o h t o a i i r f y . b o f e c e p l m n e i o k r o g . , y l e a , t l a d e h e t s f t u e p c o a e io l r i t l c r i n i i e n v o a n g , s - - n g , . tr p w p a m l u o l n e i h e r v b a r i s o c n . s e d a l h m o i d e r c e g a y n e . t , o , s i d r o o i e r t , e s o . r n r - , : r i h d n e a f e i e o s c m s w l c p c r f a l o o a h a w c p u k n o r t e n a i h s d i n r n t e t o e s i g g o s n o o b e . n t n r e , - Amount. January 26,1918, made by virtue of the authority vested in the President by the act of Congresss approved June 15,1917, known as the espionage act, and the act approved October 6,1917, known as the trading-withthe-enemy act. FEDERAL RESERVE BOARD, By Governor. Countersigned: Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FEBRUARY 1,1918. FEDERAL BESERVE BULLETIN, 87 Trading With the Enemy. from the War Trade Board or authority from the Federal Reserve Board: Provided, how- The following statements for the press were ever, that any funds so received, which the issued by the War Trade Board on January 26: collecting agency has reason to believe are the property of an "enemy" or "ally of enemy," PROTESTS OF " ENEMY" PAPER. or will be used for the benefit, directly or indirectly, of an "enemy" or "ally of enemy," The War Trade Board has authorized all must be held in separate account under notice persons in the United States holding notes, to the Alien Property Custodian. checks, or drafts, upon which an " enemy" or "ally of enemy" appears, or the handling of which involves in any way trading with, or for, or on behalf of, an "enemy" or "ally of Sale of War Savings Certificates. enemy," to perform such acts as may be necessary to perfect their rights against those The Treasury Department, in a circular secondarily liable on such notes, checks, or dated January 2, 1918, has furnished informadrafts, in the event that acceptance or payment tion regarding a method of obtaining waron such drafts or checks, or payment on such savings certificate stamps and United States notes is refused: Provided, however, that this thrift stamps for cash, which may be used as authorization shall not be deemed to legalize the presentation of any drafts, checks, or notes, an alternative to the method heretofore for acceptance or payment, or the receipt of provided. The circular in question is as payment on any drafts, checks, or notes, upon follows: which an "enemy" or "ally of enemy'7 appears, or where such presentation would in- [1917. Department Circular No. 96. War-Savings Circular No. 3. volve trading with, or for, or on behalf of, an Loans and Currency.) "enemy" or "ally of enemy," without a license As an alternative to the method provided in from the War Trade Board. Treasury Department Circular No. 95, any agent for the sale of war-savings certificates, war-savings certificate stamps, and United States thrift stamps (as well as individuals, PAYMENT OF UNITED STATES PATENT OFFICE partnerships, corporations, and the duly authorized representatives of labor, fraternal, and The War Trade Board has authorized the other associations, even though not previously payment of United States Patent Office fees agents) may obtain from a Federal requisite for the filing, prosecution, registra- Reserve Bank, for sale to the public, wartion, and preservation of patents, trade-marks, savings certificate stamps in excess of $1,000 prints, labels, or copyrights, of an "enemy" (maturity value), and also United States thrift or "ally of enemy," by any person within the stamps, with an adequate supply of war- United States, where such person is the holder savings certificates and thrift cards, upon the of a power of attorney granted by such conditions stated below. "enemy" or "ally of enemy:" Provided, how- Anyone desiring to obtain war-sayings cerever, that when such fees are to be paid from tificate stamps and United States thrift stamps the funds of an "enemy" or "ally of enemy" as provided in this circular must execute and in the United States, such payment shall be deliver to a Federal Reserve Bank an applicamade subject to the approval of the Alien tion on Form No. 1025, hereto attached (copies Property Custodian. of which may be had from any Federal Reserve Bank). Such application must bear the recommendation of a Federal director of war-savings, a COUPONS FOR FOREIGN OWNERS DUE PRIOR TO State director of war-savings, or of some other JANUARY 1, 1918. person acceptable to such Federal Reserve The War Trade Board has authorized banks Bank. Upon approval of such application by and others having coupons to collect, which such Federal Reserve Bank the applicant may, were due prior to January 1, 1918, for foreign from time to time, deposit cash with such individuals, firms, corporations, or others, to Federal Reserve Bank, as fiscal agent of the make such collection without obtaining licenses United States, and obtain therefor deliveries Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

88 FEDERAL RESTSBVE BULLETIN. FEBRUARY 1,1918. of war-savings certificate stamps at the current serve Bank by such agent for each war-savings cost price thereof during the month in which certificate stamp redelivered and 25 cents for such stamps shall be obtained, as stated each United States thrift stamp redelivered. thereon, and United States thrift stamps at 25 In determining the amount deposited with such cents each. Upon delivery of any such stamps Federal Reserve Bank by any cash agent of the the applicant becomes a cash agent of the second class for war-savings certificate stamps second class. so redelivered, sales shall be deemed to have The aggregate amount of war-savings certifi- been made by such agent in the order in which cate stamps and United States thrift stamps deliveries of such stamps may have been obobtained by any such agent less amounts re- tained by such agent, so that earlier sales shall ported as sold by such agent shall not exceed be deemed to have been made out of earlier the aggregate amount stated in the application deliveries. of such agent. Such application may, how- The Secretary of the Treasury reserves the ever, be amended, with the approval of such right to withdraw this circular, or to amend Federal Reserve Bank, so as to include such from time to time any of the provisions hereof, additional amount of war-savings certificate and to terminate any agency created hereunder. stamps and United States thrift stamps as such agent may desire to obtain. [Form 1025.] Each cash agent of the second class, whenever from time to time required by the APPLICATION. Secretary of the Treasury, shall render a report To THE FEDERAL RESERVE BANK OP , to such Federal Reserve Bank, substantially As Fiscal Agent of the United States: in Form No. 1026, hereto attached (copies of The undersigned desires to become an agent of the second class for the which may be had from such Federal Reserve issue and sale of war-savings certificates, war-savings certificate stamps, Bank), of the number of war-savings certificate and United States thrift stamps, in accordance with and subject to the respective provisions of Treasury Department Circulars Nos. 94 and 96 stamps and United States thrift stamps ob- t and to obtain from such Federal Reserve Bank, from time to time, for tained from such Federal Reserve Bank sale to the public, as provided in such circulars, war-savings certificate theretofore sold by such agent. stamps and United States thrift stamps in the aggregate amount of $ ... (the amount to be inserted may be more than the amount Any cash agent of the second class who shall 4 presently desired and should be ample to cover the agent's requirements), have complied with the terms of such agency and from time to time to obtain additional war-savings certificate stamps may at any time surrender such agency and and United States thrift stamps, in place of stamps reported sold by the redeliver to such Federal Reserve Bank, as undersigned. Such war-savings certificate stamps shall be taken at the current cost price thereof during the month when obtained, as stated Fiscal Agent of the United States, (1) all thereon, and such thrift stamps shall be taken at 25 cents each. unsold war-savings certificate stamps and The undersigned hereby agrees— United States thrift stamps and (2) all un- (a) To sell war-sayings certificate stamps, obtained by the undersigned, issued war-savings certificates and thrift cards for cash only and at the current cost price stated thereon; : . . (&) To sell tfnited States thrift stamps for cash only and at 25 cents obtained by such agent from such Federal each; Reserve Bank. . ., . , . (c) To endeavor to sell such stamps as promptly as possible; and Any cash agent of the second class whose (d) Faithfully to perform all other obligations of an agent of the second agency shall have been terminated shall there- class; as herein and in said circulars provided or as provided in any supplemental or amendatory regulations. upon, and each cash agent of the second class Upon delivery to the undersigned of any war-savings certificate stamps shall in any event, on or before December 31, or United States thrift stamps desired to be obtained hereunder, the 1918, redeliver to such Federal Reserve Bank, agreement contained in this application shall become binding upon the as fiscal agent of the. United States, (1) all undersigned, who shall thereupon become a cash agent of the second class. unsold war-savings certificate stamps and United States thrift stamps and (2) all unissued Dated, 1918. war-savings certificates and thrift cards ob- Signature in full. tained by such agent from such Federal Reserve (Authorized signature required.) Bank. Address, number and street Upon any redelivery of stamps, as provided, Gity or town ------ -- — in either of the two preceding paragraphs, County such Federal Reserve Bank, as fiscal agent of State the United States, shall return to such agent Application recommended by , 1918. Application approved by Federal Reserve Bank of , 1918. the amount deposited with such Federal Reby.. ,. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FEBRUARY 1,1918. FEDEKAL EESEBVE BULLETIN. 89 [Form 1026.] tions received during the year 1916 with capital of $12,525,000. REPORT OF SALES OF WAR-SAVINGS CERTIFICATE STAMPS AND UNITED STATES THRIFT STAMPS, Charters granted.—During the year 1917, 194 charters were granted, capital of $12,085,000. Dated ,1918. Fifty-seven of these banks with capital of To FEDERAL RESERVE BANK OP , As Fiscal Agent of the United States: $3,205,000 were conversions of State banks or The undersigned hereby renders the following report of sales of war- reorganizations of State and private banks. sayings certificate stamps and United States thrift stamps obtained by This compares with 122 charters granted the undersigned from such Federal Reserve Bank: during the year 1916 with capital of $6,890,000, War-sav- United 48 of which, with capital of $3,080,000, were ings cer- conversions of State banks or reorganizations tificate thrift stamps. stamps. of State and private banks. Capital increases.—In 1917, 175 national *Sales to 1918, not pre- banks increased their capital stock in the sum viously reported (number of stamps) of $22,934,990, against 92 banks increasing * NOTE.—Agents should fill in date to which they are able conveni- their capital by $14,785,000 during 1916. entlyito make report of sales unless some specific date is required by the Capital reductions.—Thirteen banks reduced Secretary of the Treasury. their capital by $750,800 during 1917, against {If additional stamps are desired tolreplace\stamps sold, the following 1re8q ubisia'nks reducing their capital $915,000 the tion should be filled in.) ~~~"""previous year. Liquidations.—Seventy-four national banks REQUISITION FOR STAMPS. went into voluntary liquidation (exclusive of The application filed by the undersigned states that the those consolidating with other national banks) undersigned desires to obtain war-savings certificate stamps and thrift stamps to an amount not in excess of.. $ during the year 1917, their aggregate capital War-savings certificate stamps (obtained, but being $6,522,500, as compared with 102 such not now nor heretofore reported sold), at banks liquidating during 1916, with an aggre- $ each $ gate capital of $9,233,000. Thrift stamps (obtained, but not now nor heretofore reported sold), at 25 cents each Liquidations for consolidation with national banks.—During 1917, 25 national banks with a Total capital of $5,370,000 liquidated and were con- Difference (being aggregate amount of such stamps pres- solidated with other national banks, while ently obtainable upon deposit of cash) during the previous year the liquidations of Against which the undersigned desires to obtain, upon deposit of cash therefor, as provided inH this class were 38 banks with capital of Treasury Department Circular No. 96: $8,525,000. War-savings certificate stamps, at $ each.. $ Charters refused.—During 1917 the Comp- Thrift stamps, at 25 cents each troller of the Currency refused 31 applications Total., for charters for new national banks. During the year 1916 charters were refused for 17 new (Name of agent.) national banks. By. Receivers appointed.—During the year 1917 (Official signature required.) receivers were appointed for 4 national banks (Address.) with an aggregate capital of $1,125,000 (exclusive of 1 bank, which was closed during the year but subsequently restored to solvency and New National Bank Charters and Capital reopened). During the previous year there Increases. were 8 such receiverships, the aggregate capital being $480,000. In a statement issued on January 19 the Comptroller of the Currency furnishes the fol- Business Failures During 1917. lowing summary of the operations of the year Numbering 13,855 and involving $182,441,- 1917 respecting membership in the national 371, commercial failures in the United States bank system: during 1917, as reported to R. G. Dun & Co., Charters applied for.—During the calendar disclosed substantial reduction from the mor- ?rear 1917 this office received 291 applications tality of the previous year, when there were or charters for new national banks with capital 16,993 defaults for $196,212,256. In 1915 the of $19,895,000, as compared with 248 applica- 37528—18 1 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

90 FEDERAL RESERVE BULLETIN. FEBRUARY 1,1918. number of insolvencies was 22,156, the largest commercial, the latter including agents and on record, and the amount was $302,286,148, brokers: while in 1914 there were 18,280 business reverses for the exceptional sum of $357,908,859. The 1917 returns, in fact, make the best Manufacturing. Trading. Bro a k g e e r n s t s a . nd numerical exhibit since 1911, and it is necessary Districts. to go back to 1909 to find a smaller indebted- N b u e m r. - Liabilities. ber. Liabilities. N b u e m r. - Liabilities. ness. First 612 jS12,521,166 762 35,919,628 96 81,801,769 Without exception, fewer failures occurred Second 935 I 25,631,770 1,383 15,042,779 183 11,963,599 Third 212 6,264,460 467 3,507,862 30 777,790 last year than in 1916 in all of the 12 Federal Fourth 295 8,178,829 760 4,626,294 54 2,943,894 Fifth 173 ! 3,219,474 626 5,361,386 22 247,745 Reserve districts, and only in the first, second, Sixth 154 i 3,738,856 906 7,417,789 38 1,532,571 seventh, and twelfth districts was there any S E e ig v h en th th 5 1 3 2 2 7 I1 2 0 , , 2 8 2 3 1 2 , , 5 0 6 5 2 8 1,2 6 0 5 9 8 8 3 , , 8 5 4 9 5 4 , , 2 7 0 5 4 1 1 3 1 3 8 3,3 7 6 5 2 8 , , 0 79 5 4 0 increase in the liabilities. Aside from the Ninth.... 69 ' 579,135 429 2,742,869 15 97,512 Tenth 111 ; 1,771,679 439 2,628,074 29 439,360 ninth district, where there was a decrease of 27 Eleventh 60 : 402,914 599 3,685,075 15 402,463 Twelfth 411 4,181,604 1,192 6,744,958 101 8,453,648 defaults, or 5 per cent, the numerical reduc- U.S.. 3,691 | 79,543,507 9,430 | 70,116,669 734 32,781,195 tions were of considerable size in every instance, and the showing in this respect was especially Strictly financial failures, which in the regood in the sixth, third, tenth, fifth, eleventh, turns tabulated *for this report are separated and eighth districts. The expansion in the from commercial defaults, numbered 42 in the indebtedness, owing to a few insolvencies of United States last year, as against 50 the preunusual magnitude, was particularly large in ceding year, with liabilities of $18,451,964, as the second and first districts, and it was about compared with $10,396,779 in 1916. The $1,800,000 in the twelfth district; but these figures for each of the Federal Reserve districts increases were more than offset by the contracare printed below: tion elsewhere, the falling off in the sixth district alone exceeding $9,000,000. Banking failures for 1917. The number of commercial failures last year and the preceding year, with the amount of Number. Liabilities. liabilities, in each Federal Reserve district is Districts. 1917 1916 1917 1916 compared below: First 1 2 113,025 §175,000 Commercial failures, year 1917. Second 2 1 1,510,000 1,200,000 Third 1 100,000 Fourth. .. 6 972,601 Fifth 2 2 290,666 480,000 Number. Liabilities. Sixth.. 14 16 4,657,000 3,489,178 Seventh 6 9 7,992,000 1,311,000 Districts. Eighth .... . .. 6 4 565,000 965,000 1917 1916 j 1917 1916 Ninth. 3 183,700 Tenth 2 65,000 Eleventh Q 6 425,000 1,489,000 First 1,470 1,639 §20,242,563 §15,304,555 Twelfth 5 1 2,816,239 150,000 Second.... 2,501 2,843 52,638,148 46,507,166 Third 709 974 10,550,112 11,032,593 United States , 42 50 18,451,964 10,396,779 Fourth.... 1,109 1,278 15,749,017 17,683,783 Fifth 821 1,096 8,828,605 12,428,457 Sixth 1,098 1,707 12,689,216 22.056,677 Seventh... 1,859 2,174 23,039,312 22,617,920 Growth of Resources of National Banks. Eighth.... 818 1,042 6,575,107 8,888,513 Ninth 513 540 3,419,516 4,724,399 Tenth 579 802 4,839,113 8,808,637 According to a statement of the Comptroller Eleventh. 674 870 4,490,452 8,571,775 Twelfth... l,'7O4 2,028 19,380,210 17,587,781 of the Currency issued on January 9, the re- United States. 13,855 16,993 182,441,371 196,212,256 ports of the 7,656 national banks as of November 20, 1917, the compilation of which has In the following table commercial failures in just been completed, show total resources of the United States are shown by the three lead- 18,553 million dollars. This is an increase ing classes: Manufacturing, trading, and other over the figures of November 17, 1916, of 3,033 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FEBRUARY 1,1918. FEDEBAL EESEEVE BULLETIN, 91 million dollars, and an increase over Septem- 20, 1917, was only 64.43 per cent, as against the ber 11, 1917—the greatest which had been re- proportion of loans and discounts to deposits ported up to that time—of 2,009 million on November 17, 1916, of 66.83 per cent, and as dollars. These resources exceed by more than compared with 68.42 per cent on September 11, 500 million dollars the total resources of all 1917. State banks (doing a commercial business), all Cash in vaults and due from Federal Reserve private banks, and all trust companies in the Banks, including items in process of collection United States as of June 20, 1917—the latest on November 20, 1917, amounted to 1,759 date for which State bank returns have been million dollars, as compared with 1,507 million compiled—including also the total resources dollars on November 17,1916, and as compared at that time of the 12 Federal Reserve Banks. with 1,666 millions on September 11, 1917. Total deposits on November 20, 1917, United States bonds and certificates of inamounted to 14,798 million dollars. This was debtedness, including Liberty bonds held by an increase over November 17, 1916, of 2,309 national banks November 20, 1917, amounted million dollars, and an increase as compared to 2,354 million dollars, an increase as comwith September 11, 1917, of 1,564 million pared with November 17, 1916, of 1,629 million dollars. Of the 1,564 millions increase in de- dollars, and an increase as compared with Sepposits since September 11, 1917, 641 millions tember 11, 1917, of 1,195 million dollars. The was with the national banks of the central increase was very largely represented by reserve cities; 446 millions with the national Government short-term certificates of indebtbanks in other reserve cities, and 477 millions edness, a large proportion of which has been with the country banks. paid off since November 20, 1917. The only States whose banks showed no Bills payable and rediscounts November 20, increase between the September and Novem- 1917, amounted to 600 million dollars, an inber calls were Maine, Illinois, Michigan, Iowa, crease over November 17, 1916, of 526 million and Nebraska. The State in which banks out- dollars, and an increase over September 11, side the reserve cities showed the largest in- 1917, of 314 million dollars, This increase is crease was Texas, whose increase was 83 mainly explained by temporary loans made million dollars. Tne next largest increase was with Federal Reserve Banks in connection with in Oklahoma, of 45 million dollars. The the second Liberty loan, which since November country banks in New York State increased 40 20 have been largely paid. million dollars. The next largest increases Bonds, securities, etc., other than Governwere in New Jersey and North Carolina of 22 ment bonds amounted November 20, 1917, to millions each, followed by Arkansas with 19 1,906 million dollars, an increase since Novemmillions; South Carolina and California with ber 17, 1916, of 196 million dollars, and an 18 millions each, and Massachusetts and Penn- increase over September 11, 1917, of 43 million sylvania with 17 millions each. These figures dollars. indicate that the growth in deposits in our Capital, surplus, and undivided profits on national banks is wide and general, and not November 20, 1917, amounted to 2,236 million confined to any particular section or locality. dollars, an increase over November 17, 1916, of Loans and discounts on November 20, 1917, 93 million dollars. amounted to 9,535 million dollars. This was an increase of 1,189 million dollars as compared with November 17 the previous year, and an The Comptroller of the Currency, in a stateincrease as compared with September 11, 1917, ment issued on January 21, said that during the of 480 million dollars. The proportion of loans nine months ending December 31, 1917, United and discounts to total deposits on November States Government bonds held on deposit as Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

92 FEDERAL BESERVE BULLETIN. FEBRUARY 1,1918. security for circulating notes of national banks ninety-six State institutions are now members increased by $19,054,890. of the system, having a total capital of Since March 31, 1917, the amount of bonds $232,609,800, total surplus of $312,154,446, deposited has shown a steady increase each and total resources of $5,036,051,076. month, rising from $664,526,370 on the date mentioned to $683,581,260 at the close of the Capital. Surplus. T s o o t u a r l c e r s e . year. Alabama: Birmingham—American Trust New National Bank Charters. & Savings Bank $500,000 $250,000 $5,836,700 Eufaula—Bank of Eufaula 100,000 14,000 378,828 Marion—Marion Central Bank... 50,000 100,000 497,661 The Comptroller of the Currency reports the Montgomery—Sullivan Bank & Trust Co 250,000 25,750 605,582 following increases and reductions in the num- Total. 900,000 389,750 7,318,771 ber of national banks and the capital of California: national banks during the period from Decem- San Fernando—San Fernando Valley Savings Bank 25,000 2,500 100,456 ber 29, 1917, to January 25, 1918, inclusive: Stockton—Farmers & Merchants 640,000 195,000 4,488,260 Banks\ Total. 665,000 197,500 4,588,716 New charters issued to 13 Colorado: With capital of $650,000 Denver—International Trust Co. 500,000 500,000 13,803,659 Increase of capital approved for 24 Connecticut: With new capital of 2,670,000 B N r e i w dg ep H o a r v t— en B — ri U d n g i e o p n o rt & T ru N st e w Co 500,000 300,000 7,866,545 Haven Trust Co 650,000 500,000 4,574,303 Aggregate number of new charters and Total. 1,150,000 800,000 12,440,848 banks increasing capital 37 Delaware: With aggregate of new capital authorized . - 3,320,000 Wilmington— & Wilmington Trust Co 1,000,000 500,000 13,141,081 Security Trust & Safe Deposit Co 600,000 700,000 5,909,691 Number of banks liquidating (other than those consolidating with other national Total. 1,600,000 1,200,000 19,050,780 banks) 8 District of Columbia: Washington—Continental Trust Capital of same banks 310,000 Co 1,000,000 100,000 4,289,237 Number of banks reducing capital 1 Florida: Reduction of capital 25,000 Deland—Volusia County Bank.. 100,000 100,000 1,217,318 Tampa—Citizens Bank & Trust Total number of banks going into liquida- Co 250,000 500,000 3,550,995 tion or reducing capital (other than those Total. 350,000 600,000 consolidating with other national banks). 9 Aggregate capital reduction 335,000 Georgia: Athens—American State Bank.. 100,000 20,000 538,635 Atlanta- Central Bank & Trust Cor- The foregoing statement shows the aggregate of poration , 1,000,000 300,000 9,620,109 Trust Company of Georgia.., 1,000,000 1,000,000 3,893,161 increased capital for the period of the banks Brunswick—Brunswick Bank & Trust Co 100,000 72,000 1,049,176 embraced in statement was 3,320,000 Savannah- Against this there was a reduction of capital S C a it v iz a e n n n s a h & B S a o n u k th & er n T r B u a st n C k. o . . 1, 6 0 3 0 0 0 , , 0 0 0 0 0 0 1, 5 0 7 0 0 0 , , 0 0 0 0 0 0 1 8 8 , , 4 5 1 3 5 7 , ,8 8 5 6 1 2 owing to liquidations (other than for con- West Point—Citizens Bank , 50,000 172,477 solidation with other national banks) and Total. 3,880,000 2»962,000 42,227,271 reductions of capital of 335,000 Idaho: Genesee—Genesee Exchange Bank 25,000 12,500 482,091 Net increase 2,985,000 Kimberly—Bank of Kimberly.. 35,000 10,250 389,592 Total. 60,000 22,750 871,683 Illinois: State Banks and Trust Companies Admitted. Chicago- Austin State Bank 200,000 60,000 2,668,743 Central Trust Co. of Illinois. 6,000,000 1,000,000 54,074,035 The following list shows the State institu- Chicago Savings Bank & Trust Co. 1,000,000 200,000 12,733,891 tions which have been admitted to membership First Trust & Savings Bank 5,000,000 5,000,000 84,207,394 Foreman Bros. Banking Co. 1,500,000 500,000 18,141,352 in the Federal Reserve system up to and in- Harris Trust & SavingsBank 2,000,000 2,000,000 33,570,255 Home Bank & Trust Co 300,000 75,000 2,428,522 cluding January 31, 1918. Two hundred and Hyde Park State Bank 200,000 50,000 1,840,530 Kaspar State^Bank 500,000 300,000 6,476,754 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FEBRUARY 1,1918. FEDERAL BESEBVE BULLETIN. 93 Capital. Surplus. T so o u ta rc l e r s e . - Capital. Surplus. T so o u ta r l c e re s. - Illinois—Continued. Louisiana: Chicago—Continued. Gretna— Jefferson Trust & Sav- Mechanics & Traders State ings Bank £$30,000 $20,000 $402,332 Bank $200,000 $50,000 $1,920,040 Iota—Bank of Iota 25,000 114,204 Merchants Loan & Trust Co. 3,000,000 8,000,000 109,517,884 New Orleans- Noel State Bank , 300,000 75,000 2,428,746 Canal Bank & Trust Co 2,000,000 500,000 21,210,372 Standard Trust & Savings Hibernia Bank & Trust Co. 1,500,000 2,000,000 25,881,516 Bank 1,000,000 500,000 9,980,043 Interstate Trust & Banking State Bank of Chicago , 1,500,000 3,000,000 38,004,507 Co 750,000 500,000 9,171,943 Union Trust Co 1,500,000 1,500,000 37,348,934 Metropolitan B ank 400,000 200,000 4,077,889 United State Bank of Chicago 200,000 30,000 869,220 Cicero—Kirchinan State Bank... 613,746 Total. 4,705,000 3,220,000 60,858,256 Effingham—Effingham State 100,000 25,000 Bank 721,719 Maryland: Elmhurst—Elmhurst State 50,000 10,000 Baltimore- Bank 703,766 Baltimore Commercial Bank, 500,000 100,000 2,668,945 Evanston—State Bank of Evans- 60,000 25,000 Baltimore Trust Co 1,000,000 2,000,000 15,990,745 ton 4,142,457 Maryland Trust Co., 1,000,000 8,974,128 Joliet- 150,000 200,000 Commercial Trust & Savings Total. 2,500,000 2,100,000 27,633,818 Bank 100,000 5,000 569,684 Joliet Trust & Savings Bank. 100,000 25,000 766,311 Massachusetts: Kewanee—Union State Savings Boston- B ank & Trust Co 100,000 25,000 1,170,562 American Trust Co 1,000,000 2,000,000 25,578,848 Martinsville—Martinsville State Beacon Trust Co 600,000 1,000,000 18,200,452 Bank 50,000 17,000 388,031 Commonwealth Trust Co 1,000,000 500,000 24,001,52a Oak Park—Oak Park Trust & International Trust Co... 1,500,000 1,500,000 23,933,840 S avings B ank 200,000 50,000 2,687,734 Metropolitan Trust Co.... 300,000 300,000 5,787,080 Oak Park—Suburban Trust & Old Colony Trust Co 6,000,000 7,000,000 150,784,124 Savings Bank 100,000 10,000 379,251 State Street Trust Co 1,000,000 1,500,000 36,288,917 Quincy—State Savings Loan & Cambridge—Charles River Trust Trust Co 1,000,000 8,092,397 Co...... 200,000 200,000 2,893,28$ Fitchburg—Fitchburg Bank & Total. 26,410,000 22,732,000 436,446,508 Trust Co 500,000 250,000 4,935,072 Holyoke—Hadley Falls Trust Co. 500,000 250,000 6,283,988 Indiana: Newton—Newton Trust Co 400,000 400,000 4,889,053 Elkhart—St. Joseph Valley Bank 100,000 50,000 2,484,247 Norwood—Norwood Trust Co... 200,000 2,563,580 Kentland—Discount & Deposit Winchester—Winchester Trust State Bank 70,000 35,000 549,592 Co 100,000 25,000 731,236 . Paoli—Paoli State Bank 25,000 750 194,868 Worcester—Worcester Bank & Terre Haute—Terre Haute Trust Trust Co 1,250,000 500,000 24,123,410 Co 350,000 200,000 6,468,674 Total. 14,550,000 15,425,000 330,994,403 Total. 545,000 285,750 9,697,381 Michigan: =5=== Adrian- Iowa: Adrian State Savings Bank.. 120,000 55,000 1,975,276 Brighton—Brighton State Bank. 50,000 10,000 672,810 Commercial Savings Bank... 110,000 30,000 1,139,850 Cedar Falls—Security Trust & Lenawee County Savings Savings Bank 50,000 5,000 919,175 Bank 150,000 50,000 2,194,213 Clinton—Peoples Trust & Sav- Albion—Commercial & Savings ings Bank , 300,000 300,000 5,179,744 Bank 75,000 40,000 798,485 De C s o Moines—Iowa Loan & Trust 500,000 100,000 7,436,047 A Ch n a n r A lo r t b te o — r— E S at t o at n e S C a o v u in n g ty s B S a a n v k - . 150,000 150,000 2,976,070 Gilman—Citizens Savings Bank. 25,000 11,000 383,801 ings Bank 100,000 20,000 925,622 Mason City—Commercial Sav- Dearborn—Dearborn State Bank" 50,000 50,000 1,478,614 ings Bank 100,000 14,000 1,117,160 Detroit- Ottumwa—Ottumwa First State Bank 500,000 150,000 8,275,489 Bank 100,000 30,000 1,205,090 Peninsular State Bank 2,500,000 1,000,000 27,270,333 Sioux City—Bankers Loan & Peoples State Bank 2,500,000 2,500,000 77,761,759 Trust Co 100,000 5,000 277,323 The Dime Savings Bank 1,000,000 1,000,000 32,769,194 Sutherland—First Savings Bank, 50,000 320,201 Wayne County & Home Thompson—State Bank of Savings Bank , 3,000,000 3,000,000 53,681,743 Thompson , 30,000 8,000 251,762 Detroit Savings Bank 750,000 750,000 19,524,470 Vail—Farmers State Bank 50,000 8,000 264,040 Central Savings Bank 500,000 100,000 11,962,743 American State Bank , 500,000 185,130 7,243,617 Total. 1,355,000 491,000 18,027,153 Flint- Citizens Commercial & Sav- 150,000 175,000 3,438,805 Fairview—Fairview State Bank. 30,000 15,000 291,985 Union Trust & Savings Bank 100,000 135,000 3,848,355 Fort Scott—Fort Scott State Industrial Savings Bank 250,000 250,000 4,307,935 Bank. 100,000 26,000 748,859 Fremont—Old State Bank 50,000 25,000 875,831 Hiawatha—Morrill & Janes Bank 100,000 50,000 1,143,410 Gladstone—State Savings Bank. 50,000 15,000 571,986 Wichita—Southwest State Bank. 200,000 9,000 1,521,337 Grand Haven—Grand Haven Winfield—The State Bank.... 100,000 50,000 1,282,448 State Bank 75,000 50,000 1,662,949 Grand Rapids- Total. 530,000 150,000 Grand Rapids Savings Bank 400,000 350,000 8,479,169 Kent State Bank 500,000 500,000 9,419,740 Kentucky: Hart—Oceana County Savings Louisville—German Insurance Bank 40,000 13,000 427,901 Bank 250,000 500,000 7,307,484 Highland Park—Highland Park Maysville—First Standard Bank State Bank.. 1,000,000 400,900 20,976,678 M & ou T nt r u S s t t e r C li o ng—ExchangeBank 175,000 60,000 1,418,794 Hu B d a s n on k — ... Boies State Savings : 75,000 25,000 m of Kentucky 50,000 25,000 434,572 Jackson- Central State Bank 100,000 26,000 734,295 Total. 475,000 585,000 9,160,850 Jackson State Savings Bank. 100,000 100,000 1,062,781 Union Bank of Jackson 400,000 100,000 2,037,539 4,388,130 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

94 FEDERAL BESSEVE BULLETIN". FEBRUARY 1,1918. Capital. Surplus. T so o u ta r l c e re s. - Capital. Surplus. T s o o t u a rc l e r s e . - Michigan—Continued. New Jersey—Continued. Lansing—Lansing State Savings Plainfield-Plainfield Trust Co.. $300,000 $200,000 $8,749,434 Bank $150,000 $100,000 $2,632,821 Rahway—Rahway Trust Co 100,000 25,000 398! 277 Lapeer—Lapeer Savings Bank... 50,000 10,000 545,282 Westfield—Peoples Bank & Trust Monroe—B. Dansard & Sons' 100,000 80,000 2,005,718 State Bank 100,000 20,000 1,627,265 Hoboken—Hudson "Trust" Go." of Mount Pleasant—Exchange Sav- WestHoboken.... 1,000,000 1,000,000 21,466,091 ings Bank.. 50,000 30,000 791,176 Niles-Niles City Bank 100,000 20,000 699,175 Total 2,700,000 2,685,000 62,941,318 Petersburg—H. C. McLachlin & Co. State Bank 25,000 5,000 362,541 New York: Port Huron—St. Clair County Batavia—The Bank of Genesee.. 100,000 100,000 1,151,907 Savings Bank 100,000 50,000 1,319,436 Brooklyn- Rochester—Kochester Savings Brooklyn Trust Co 1,500,000 2,898,481 40,270,926 Bank 50,000 10,000 556,346 Franklin Trust Co 1,000,000 1,000,000 24,823,842 Romeo—Romeo Savings Bank.. 50,000 30,000 1,081,181 Manufacturers Trust Co 1,000,000 300,000 15,031,812 Royal Oak—First Commercial Peoples Trust Co , 1,000,000 29,443,301 State Bank ... 25,000 5,000 362,624 Buffalo- 1,000,000 Saugatuck—Fruit Growers State Buffalo Trust Co 500,000 9,624,217 Bank 50,000 10,000 476,786 Citizens Commercial Trust 500,000 Sault Ste. Marie—Sault Savings Co 1,250,000 18,196,063 Bank 100,000 35,000 % 140,382 1,250,000 St. Clair—Commercial & Savings New York- Bank 50,000 10,000 746,874 Bankers Trust Co , 11,250,000 11,250,000 327,011,784 Bank of America 1,500,000 6,000,000 60,903,035 Total.... 16,195,000 11,579,130 324,551,462 Broadway Trust Co 1,500,000 750,000 34,726,703 Central Trust Co... 5,000,000 15,000,000 209,953,374 Minnesota: Columbia Trust Co 5,000,000 5,000,000 124,186,774 Minneapolis- Corn Exchange Bank 3,500,000 6,991,165 153,989,100 Bankers Trust & Savings Equitable Trust Co 6,000,000 10,500,000 230,210,148 Bank. . .. 1,000,000 200,000 2,197,403 Fidelity Trust Co 1,000,000 1,000,000 13,965,146 German American Bank 200,000 200,000 4,689,159 German American Bank 750,000 250,000 8,404,825 St. Anthony Falls Bank 300,000 60,000 3,763,062 GermaniaBank of the City of. 400,000 600,000 8,731,766 Wells-Dickey Trust Co 500,000 20,000 612,406 Guaranty Trust Co 25,000,000 25,000,000 613,535,033 St. Paul—Peoples Bank 300,000 50,000 2,280,204 Lincoln Trust Co 1,000,000 500,000 16,675,933 Spring Valley—Farmers State Manhattan Co 2,050,000 4,500,000 82,094,144 Bank 25,000 5,000 149,092 Mercantile Trust & Deposit Virginian-American Exchange co :.... 1,000,000 500,000 8,593,786 Bank 100,000 30,000 1,162,835 Metropolitan Bank , 2,000,000 1,000,000 28,801,800 Winona—Merchants Bank of Metropolitan Trust Co 2,000,000 4,000,000 63,853,782 Winona 100,000 50,000 2,581,970 New York Trust Co 3,000,000 10,000,000 90,773,776 Pacific Bank 500,000 500,000 13,907,579 Total...... 2,525,000 615,000 17,436,041 Scandinavian Trust Co 1,000,000 1,500,000 11,359,362 Union Trust Co 3,000,000 4,500,000 87,043,831 Mississippi: U. S. Mortgage & Trust Co.... 2,000,000 4,000,000 Summit—Union Bank of Pike... 25,000 4,000 165,516 W. R. Grace & Co.'s Bank... 500,000 500,000 6,675,523 United States Trust Co 2,000,000 12,000,000 77,455,087 Missouri: Ogdensburgh—St. Lawrence Kansas City- Trust Co 100,000 25,000 823,362 Commerce Trust Co 1,000,000 750,000 32,897,159 Utica-- St. L F o id u e i l s i - ty Trust Co 1,000,000 1,000,000 14,461,776 C O i n ti e z i e d n a s C T o r u u n s t t y C T o r ust Co w 5 25 0 0 0 , , 0 0 0 0 0 0 2 4 5 0 0 0 , , 0 0 0 0 0 0 1 2 0 , , 4 6 2 4 8 1 , , 7 9 4 3 6 1 Franklin Bank 600,000 700,000 8,961,674 Utica Trust & Deposit Co 400,000 200,000 11,850,975 German American 1,000,000 700,000 9,239,685 Watertown—Northern New German Savings Institution. 1,500,000 1,000,000 19,261,222 York Trust Co 400,000 400,000 7,151,603 International Bank of 500,000 500,000 6,981,718 Oneida—Madison County Trust • Lafayette South Side Bank.. 800,000 400,000 12,604,870 & Deposit Co 164,100 94,870 2,224,326 Mercantile Trust Co 3,000,000 6,500,000 40,732,458 Rome—Rome Trust Co 300,000 60,000 3,627,406 Mississippi Valley Trust Co 3,000,000 3,500,000 30,414,523 Elmira—Chemung Canal Trust St. Louis Union Bank. 2,500,000 2,500,000 44,389,921 Co 600,000 400,000 7,301,858 Marshall—Wood & Huston Bank 100,000 150,000 1,485,071 Syracuse—City Bank 500,000 148,000 7,442,110 Gloversville—Trust Co. of Fulton Total 15,000,000 17,700,000 221,430,077 County 200,000 100,000 527,339 Montana: Total 90,714,100 134,967,5162,558,781,416 Helena—Conrad Trust & Savings Bank 200,000 80,000 3,042,678 North Carolina: Hingham—Hingham State Bank 35,000 335,296 New Bern—New Bern Banking Opheim—First State Bank.. 25,000 5,000 229,183 & Trust Co 100,000 738,684 Sidney—Yellowstone Valley North Dakota: Bank & Trust Co 100,000 5,000 748,601 Enderlin—Enderlin State Bank.. 50,000 10,000 395,259 Bozeman—Gallatin Trust & Sav- Fargo—Northern Savings Bank.. 100,000 15,000 1,460,424 ings Bank 100,000 25,000 1,046,919 Hettinger—Hettinger State Bank 25,000 3,500 282,089 Williston—Bank of Williston 50,000 113,071 Total 460,000 115,000 5,402,677 Total 225,000 28,500 2,250,843 Nebraska: Lewellen—Bank of Lewellen 25,000 10,000 250,820 Ohio: Pender—Pender State Bank 50,000 3,000 403,036 Cleveland- Citizens Savings & Trust Co.. t,000,000 4,000,000 74,532,631 Total 75,000 13,000 653,856 Cleveland Trust Co 1,500,000 2,500,000 55,121,784 Guardian Savings & Trust Co 1,000,000 3,000,000 52,731,355 .New Jersey: Columbus—Citizens Trust & Bloomfield—Bloomfield Trust Co 200,000 100,000 3,213,787 Savings Bank 700,000 150,000 5,271,822 Camden—Camden Safe Deposit Hillsboro—Hillsboro Bank & &TrustCo 500,000 800,000 10,352,726 Savings Co 50,000 12,000 551,959 Montclair—Bank of Montclair... 100,000 80,000 2,799,827 Massillon—Ohio Banking & Passaio— Trust Co 150,000 37,500 1,307,036 Passaic Trust & Safe Newark—Newark Trust Co 200,000 125,000 2,655,417 Deposit Co 200,000 100,000 7,130,181 Steubenville—Steubenville Bank Peoples Bank & Trust Co... 200,000 300,000 6,825,277 & Trust Co 125,000 50,000 1,713,78* Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FEBRUARY 1,1918. FEDERAL BESEEVE BULLETIN. 95 Capital. Surplus, T s o o t u a r l c e r s e . - Capital. Surplus. T so o u ta r l c e re s. - Ohio—Continued. Virginia—Continued. Toledo-rGuardian Trust & Sav- Norfolk—Citizens Bank of §600,000 $500,000 $5,896,002 ings Bank 3200,000 $200,000 $4,224,961 Richmond—The Savings Bank Youngstown—City Trust & Sav- of 200,000 200,000 2,198,163 ings Bank. 200,000 150,000 4,752,034 Total 1,050,000 730,000 8*821,324 Total. .1,125,000 10,224,500 202,862,783 Washington: Oregon: Bellingham—Northwestern State Enterprise—Enterprise State Bank............ 100,000 45,000 1,474,055 Bank , 50,000 10,000 259,637 Cbehalis—Coftman-Dobson Bank Hood River—Butler Banking Co. 100,000 20,000 909,708 & Trust Co.. 150,000 100,000 1,493,790 North Portland—Live Stock Colfax—First Savings & Trust State Bank 100,000 10,000 . 872,846 Co 50,000 15,000 369,711 Portland—Ladd & Tilton Bank.. 1,000,000 1,000,000 21,427,913 Farmington—Bank of Farmington 25,000 5,000 254,214 Total. 1,250,000 1,040,000 23,470,104 Hoquiam—Lumbermens Bank... 100,000 13,000 760,618 La Crosse—First State Bank..... 60,000 8,000 715,454 Pennsylvania: North Yakima—Yakima Valley Erie—Security Savings & Trust Bank . 100,000 15,000 1,269,710 Co :..". ... 200,000 300,000 3,989,335 Odessa—Farmers and Merchants Lykens—Miners DepositBank... 50,000 110,000 679,897 Bank 25,000 2,500 247,374 New Castle—Lawrence Savings Port Townsend — Merchants & Trust Co , 300,000 300,000 3,183,907 Bank 75,000 25,000 744,277 Philadelphia- Reardan—Farmers State Bank... 25,000 7,500 639,855 Commercial Trust Co 1,000,000 1,750,000 24,796,108 Rosalia—Bank of Rosalia 25,000 5,000 308,777 Girard Trust Co 2,500,000 7,500,000 61,172,461 Seattle- Philadelphia Trust Co....... 1,000,000 4,000,000 26,160,684 Metropolitan Bank 200,000 100,000 3,559,260 Penna. Co. for Insurances on Dexter Horton Trust & Sav- Lives and Granting Annui- ings Co 400,000 100,000 7,725,758 ties 2,000,000 5,000,000 43,602,088 Spokane—Spokane & Eastern Fidelity Trust Co 5,000,000 .6,000,000 62,640,331 Trust Co 1,000,000 200,000 20,078,867 Pittsburgh- Tacoma—Fidelity Trust Co 500,000 300,000 6,645,716 Pittsburgh Trust Co 2,000,000 1,000,000 21,067,764 Tekoa—Tekoa State Bank 30,000 12,000 435,848 Union Trust Co 1,500,000 34,500,000 137,516,868 Wilbur—State Bank of Wilbur.. 50,000 5,000 919,175 Oakland Savings & Trust Co. 200,000 200,000 4,185,658 Colonial Trust Co 2,600,000 2,600,000 20,204,199 Total 2,915,000 958,000 47,642,459 W p il o k s e i s t - B B a ar n r k e—The Dime De- 200,000 150,000 1,954,742 West Virginia: . , = Charleston—The Kanawha Val- Total. 18,550,000 73,410,000 411,144,042 ley Bank 400,000 900,000 7,619,935 Graiton—Graf ton Banking & Rhode Island: TrustCo.... 100,000 30,000 1,180,082 Providence—Industrial Trust Co... 3,000,000 4,000,000 71,783,303 Total.... 500,000 930,000 8,800,017 South Carolina: Cheraw—Merchants & Farmers Wisconsin: Bank.... 100,000 3,000 338,007 Clinton—Citizens Bank 50,000 10,000 478,360 Hartsville—Bank of Hartsville... 50,000 50,000 394,626 Madison—Bank of Wisconsin 300,000 60,000 2,156,438 Sumter—Peoples Bank of Sumter 100,000 19,400 368,325 Milwaukee- Westminster—W e s t m i n s t e r Badger StateBank 200,000 2,000 1,506,471 Bank 100,000 25,000 453,433 Marshall & Illsley Bank 1,000,000 700,000 17,405,264 Woodruff—Bank of Woodruff.... 40,700 10,500 256,874 American Exchange Bank... 250,000 50,000 4,721,622 Total. 390,700 107,900 1,811,265 Total 1,800,000 822,000 26,268,155 South Dakota: Sioux Falls—Sioux Falls Savings Tenne B ss a e n e k : 200,000 23,000 3,852,236 War Finance Corporation. Memphis—Union & Planters Bank & Trust Co 1,400,000 200,000 15,307,795 Secretary McAdoo on January 29 called Texas: Bonham—First State Bank 100,000 14,000 543,354 the following measure to the attention of the Bremond—First State Bank 50,000 25,000 Cuero—First State Bank & Trust Congress: Co 100,000 35,000 651,531 Childress—Farmers & Mechanics Da S l t l a a te s - Bank 50,000 25,000 561,737 for A t n h A e c p t u T rp o o s p e r o o v f i d a e s s f i u s r ti t n h g er in fo r t h th e e p n ro a s ti e o c n u a ti l o s n e c o u f r i t ty h e a n w d a r d e t f o en s p e r , o a v n id d e C Fi e r n s t t r a S l ta S t t e a B te a u B k ank 2 2 0 5 0 0 , , 0 0 0 0 0 0 2 5 8 , , 0 0 0 00 0 3 1 , , 0 6 1 9 6 8 , ,2 7 3 9 6 6 c c r o e n d t i r t i s b u fo to r r i y n d to u s t t h ri e e p s r a o n se d c u e t n i t o e n r p o ri f s t e h s e in w a t r h , e a U nd n i f t o e r d o S th ta e t r e s p u n r e p c o e s s e s s a . ry or DeKalb—First State Bank 25,000 25,000 2,638,304 Edgewood—Farmers & Mer- Be it enacted by the Senate and House of Representatives Ham c l h in a — nts F i S rs ta t te S ta B t a e n B k ank 3 2 5 5, , 0 0 0 0 0 0 7 1, , 7 0 5 0 0 0 1 9 5 5 8 , , 6 8 7 9 5 4 of the United States of America in Congress assembled, Lubbock—Lubbock State Bank, 100,000 13,000 837,114 That for the purpose of affording financial assistance, Memphis—Citizens State Bank.. 75,000 26,400 377,603 Paris—Lamar State Bank & either directly or indirectly, to persons, firms, corporations, Trust Co 150,000 12,500 1,482,314 and associations whose operations are necessary or contrib- Savoy—First State Bank 25,000 3,500 120,175 Wolfe City—First State Bank.. 50,000 20,000 235,461 utory to the prosecution of the war, in cases where such Total. 1,235,000 241,150 12,650,017 persons, firms, corporations, or associations shall be unable to procure funds on reasonable or practicable terms from Virginia: Chase City—Peoples Bank & the general public or through the regular banking chan- Ha T r r r u is s o t n C bu o rg—Peoples Bank of.. 1 1 5 0 0 0 , , 0 0 0 0 0 0 2 1 0 0 , , 0 0 0 0 0 0 1 55 7 4 3 , , 1 0 5 0 4 5 nels, and for the purpose of regulating and controlling the Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

96 FEDERAL .RESERVE BULLETIN. FEBRUARY 1,1918. offering for sale or subscription of securities hereafter is- retary of the Treasury, with the approval of the Presisued,- and for other purposes in aid of the prosecutionfof dent of the United States, not, however, exceeding the the war, the Secretary of the Treasury, together with four annual salary of the principal officer of an executive deadditional persons (who shall be the directors first ap" partment of the United States. Any director receiving pointed as hereinafter provided)lare hereby created|a from the United States any salary or compensation for body corporate and politic in deed and in lawfby the services shall not receive as salary from the corporation name, style, and title of the "War Finance Corporation" any amount which, together with any salary or compensa- (herein called the "corporation"), and shall have succes- tion received from the United States, would make the total sion for a period of] ten years, provided that in no event amount paid to him by the United States and by the corshall the corporation exercise any of the powers conferred poration exceed the amount fixed as the annual salary of a by this act, except such as are incidental to the successful director of the corporation, as hereinbefore provided. Of liquidation of its assets and the successful winding up its the four directors appointed, as hereinbefore provided, the affairs after six months after the termination of the war, Secretary of the Treasury shall designate two to serve for the date of such termination to be fixed by proclamation two years, and two for four years; and thereafter each of the President of the United States. director so appointed shall serve for a term of four years. SEC. 2. The capital stock of the corporation shall be No director or officer of the corporation shall continue to $500,000,000, all of which shall be subscribed by the United be an officer, director, or trustee of any other corporation States of America, and such subscription shall, upon the or member of any firm of bankers; and, before entering approval of the Secretary of the Treasury, be subject to upon his duties each director and officer shall certify under call upon the vote of three-fifths of the board of directors oath to the Secretary of the Treasury that he has complied of the corporation at such time or times as may be deemed with this requirement, and shall also take an oath faith m advisable; and there is hereby appropriated out of any fully to discharge the duties of his office. But nothing con> money in the Treasury, not otherwise appropriated, the tained in this act or in the Federal Reserve Act shall be sum of $500,000,000, or so much thereof as may be neces- construed to prevent the appointment of a member of the sary, for the purpose of making payment upon such sub- Federal Reserve Board or of any other governmental adscription when and as called. Receipts for payments by ministrative body or of a director of a Federal Reserve the United States of America for, or on account of, such Bank as a director of the corporation. stock shall be issued by the corporation to the Secretary SEC. 6. The corporation shall be empowered and auof the Treasury, and shall be evidence of stock ownership. thorized: SEC. 3. The management of the corporation shall be (a) To adopt, alter, and use a corporate seal; to make vested in a board of directors, consisting of the Secretary contracts; to purchase or lease and hold or dispose of such of the Treasury, who shall be chairman of the board, and real estate as may be necessary for the prosecution of its four other persons, to be appointed by the Secretary of business; to sue and be sued; complain and defend in any the Treasury, with the approval of the President of the court of law or equity, including courts of the United United States. Any director or directors so appointed States; to appoint, by its board of directors, and &K. the may be removed by the Secretary of the Treasury, with compensation of such officers, employees, attorneys, and the approval of the President, and vacancies, however agents as are not otherwise provided for in this act, to define arising, may be filled by the Secretary of the Treasury, their duties, require bonds of them, and fix the penalties with the approval of the President. Whenever a vacancy thereof, and to dismiss at pleasure such officers, employees, shall occur among the directors so appointed, the person attorneys, and agents; and to prescribe, amend, and reappointed director to fill any such vacancy shall hold peal, by its board of directors, subject to the approval of office for the unexpired term of the member whose place the Secretary of the Treasury, by-laws regulating the manhe is selected to fill. Three members of the board of di- ner in which its general business may be conducted and rectors shall constitute a quorum for the transaction of the privileges granted to it by law may be exercised and business. enjoyed, and prescribing the powers and duties of its SEC. 4. The principal office of the corporation shall be officers and agents. located in the District of Columbia, but there may be (b) To make advances, upon such terms, not inconestablished agencies or branch offices in any city or cities sistent herewith, as it may prescribe, for periods not exof the United States under rules and regulations pre- ceeding five years from the respective dates of such scribed by the board of directors, with the approval of advances, (1) to any bank, banker, or trust company, the Secretary of the Treasury. which has made, and which has outstanding, any loan or SEC. 5. The four directors of the corporation appointed loans to any person, firm, corporation, or association, as hereinbefore provided shall devote their entire time to whose operations shall be necessary or contributory to the the business of the corporation (except such part of their prosecution of the war, and evidenced by a note or notes, time, if any, as shall be devoted to other governmental or (2) to any bank, banker, or trust company which has business) and shall receive annual salaries, payable rendered financial assistance, directly or indirectly, to monthly, the amount of which shall be fixed by the Sec- any such person, firm, corporation, or association by the Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FEBRUARY 1,1918. FEDERAL RESERVE BULLETIN. 97 purchase of its bonds or other obligations: Provided, That mercial paper prevailing at the Federal Reserve BankTof advances so made by the corporation on the basis of any the district in which the borrowing institution is located. such loan or loans shall not exceed 75 per cent of the face The corporation shall retain power to require additional value thereof: And provided, That any advances so made collateral security at any time. by the corporation, in cases where such financial assist- (d) In exceptional cases, to make advances directly to ance shall have been rendered by the purchase of such any person, firm, corporation, or association, whose operabonds or other obligations, shall not exceed 75 per cent of tions shall be necessary or contributory to the prosecution the market value of such bonds or other obligations at the of the war, for periods not exceeding five years from the time of such advance, as estimated and determined by respective dates of such advances, upon such terms, and the board of directors of the corporation: And provided upon the security of such bonds, notes, or other obligations, further, That all such advances shall be made upon the and subject to such rules and regulations as may be prepromissory note or notes of such bank, banker, or trust scribed by the board of directors of the corporation, with company, secured by the notes, bonds, or other obliga- the approval of the Secretary of the Treasury. The corpotions, which are the basis of any such advance by the ration shall retain power to require additional collateral corporation, together with all the securities, if any, which security at any time. such bank, banker, or trust company may hold as collateral (e) To subscribe for, acquire and own, buy, sell, and for such notes, bonds, or other obligations. The corpo- deal in bonds and obligations of the United States to such ration shall, however, have power to make advances (a) extent as the Secretary of the Treasury may from time to up to 100 per cent of the face value of any such loan or time determine. loans made by any such bank, banker, or trust company (/) To issue and have outstanding at any one time its to any such person, firm, corporation, or association, or (h) notes or obligations in an amount aggregating not more up to 100 per cent of the market value at the time of such than eight times its paid-in capital, such notes or obliadvances (as estimated and determined by the board of gations to mature not less than one year nor more than directors of the corporation) of such bonds or other obliga- five years from the respective dates of issue, and to bear tions by the purchase of which financial assistance shall such rate or rates of interest, and may be redeemable have been rendered to such person, firm, corporation, or before maturity at the option of the corporation as may association, provided every such advance shall be secured be determined by the board of directors, subject to the in the manner described in the preceding part of this approval of the Secretary of the Treasury. Such notes paragraph, and in addition thereto by collateral security, or obligations shall have a first and paramount floating to be furnished by the bank, banker, or trust company, of charge on all tjie assets of the corporation,and the corsuch character as shall be prescribed by the board of poration shall not at any time mortgage or pledge any directors, with the approval of the Secretary of the Treas- of its assets. Such notes or obligations may be issued ury, of a market value, at the time of such advance (as at par in payment of any advances authorized by this estimated and determined by the board of directors of the act, or, for any of the purposes of this act, may be offered corporation), equal to at least 25 per cent of the amount for sale publicly or to any individual, firm, or corporation advanced by the corporation. The corporation shall at such price or prices as the board of directors may deterretain power to require additional collateral security at mine, subject to the approval of the Secretary of the any time. Treasury. Such notes or obligations may be dealt in by Federal reserve banks in the same manner and to the (e) To make advances from time to time, upon such same extent as bonds or notes of the United States not terms, not inconsistent herewith, as it may prescribe, for bearing the circulation privilege, and Federal reserve periods not exceeding 90 days, to any savings bank or banks shall be authorized, subject to the regulations of other banking institution which receives savings deposits, the Federal Reserve Board, to rediscount and purchase on the promissory note or notes of the borrowing institupaper secured by such notes or obligations in the same tion, whenever the corporation shall deem such advances manner and to the same extent, and at the same rate to be necessary or contributory to the prosecution of the or at such higher rate as the Federal Preserve Board may war or important to the public interest: Provided, That approve, as they may purchase or rediscount paper, such note or notes shall be secured by the pledge of securisecured by such bonds or notes of the United States, ties of such character as shall be prescribed by the board under authority of the Federal Reserve Act. Any Fedof directors of the corporation with the approval of the eral reserve bank acquiring by purchase or rediscount Secretary of the Treasury, the market value of which, at such paper secured by the notes or obligations of the the time of such advance (as estimated and determined by corporation may, with the approval of the Federal Rethe board of directors of the corporation) shall be equal in serve Board, use such paper so acquired for any purpose amount to at least 125 per cent of the amount of such for which it is authorized to use paper secured by such advance; And provided further, That the rate of interest bonds or notes of the United States: Provided, however, charged on any such advance shall not be less than one That whenever Federal reserve notes are issued against per cent in excess of the rate of discount for 90-day com- 37528—18 5 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

98 FEDERAL EESEEVE BULLETIN, FEBRUARY 1,1918. the security of such paper the Federal Reserve Board to prohibit, or to require any license from the corporation may make a special interest charge on such notes, which, in respect of, any borrowing by any person, firm, corporain the discretion of the Federal Reserve Board, need not tion, or association in the ordinary course of business as be applicable to other Federal reserve notes which may distinguished from borrowing for capital purposes. This from time to time be issued and outstanding. All provi- section shall not be construed to apply to any securities sions of law not inconsistent herewith, in respect to the issued by any railroad corporation the property of which purchase or rediscount by any Federal Reserve Bank of may be in the possession and control of the President of paper secured by such bonds or notes of the United the United States. This section shall not take effect until States and in respect to Federal reserve notes issued rules and regulations shall have been prescribed by the against the security of such paper, shall extend, in so corporation, as hereinbefore provided, and may continue far as applicable, to the purchase or rediscount of paper in effect until the expiration of six months after the tersecured by the notes or obligations of the corporation and mination of the war, the date of such termination to be to the Federal reserve notes issued against the security determined by a proclamation of the President of the of such paper. Nothing done or omitted by the corpora- United States. tion hereunder shall be construed as carrying the ap- SEC. 8. Whoever shall willfully violate any of the proproval of the corporation or of the United States of the visions of this act or of any license, order, rule, or regulalegality, validity, worth, or security of any securities. tion issued hereunder, or whoever shall willfully violate, (g) To exercise by its board of directors, and its duly neglect, or refuse to comply with any such license, order, authorized officers or agents, all powers specifically granted rule, or regulation issued hereunder, shall upon conviction by the provisions of this act and such incidental powers as in any court of the United States of competent jurisdiction, shall be necessary or proper to carry out the purposes of be fined not more than $5,000, or, if a natural person, this act: Provided, That the powers specifically enumerated imprisoned for not more than four years, or both; and any herein shall be deemed additional to, and not in limitation officer, director, or agent, of any corporation or association, of, any implied powers granted by this act: And provided or member of any firm, who shall knowingly participate further, That it shall not exercise any of those powers or in any such violation, neglect, or refusal shall *be punished perform any business except such as is incidental and nec- by a like fine, imprisonment, or both. essarily preliminary to its organization until it has been SEC. 9. All net earnings of the corporation not required authorized by the President of the United States to com- for its operations shall be accumulated as a reserve fund mence business under the provisions of this act. until such time as the corporation liquidates under the SEC. 7. For the purpose of assisting in the prosecution terms of this act. Such reserve fund shall, upon direction of the war, and providing for the public security and of the Secretary of the Treasury, be invested in bonds, defense, through the restriction of unnecessary capital notes, or certificates of indebtedness of the United States, expenditures, the corporation may, under rules and regu- or upon like direction may be deposited in member banks lations to be prescribed by the corporation^ with the ap- of the Federal Reserve system, or may upon like direction proval of the Secretary of the Treasury, investigate and be deposited in any of the Federal Reserve Banks. The license, or refuse to license, the sale, or offering for sale or Federal Reserve Banks are hereby authorized to act as for subscription, of securities, as hereinafter provided. No depositaries for and as fiscal agents of the corporation in person, firm, corporation, or association shall sell, or offer the general performance of the powers conferred by this £OT sale, or for subscription, any issue, or any part of any act. Beginning six months after the termination of the issue, of securities hereafter issued, the par or face value war, the date of such termination to be fixed by a proclaof which shall be in excess of $100,000, except in accord- mation of the President of the United States, the directors ance with such rules and regulations as the corporation, of the corporation shall proceed to liquidate its assets and with the approval of the Secretary of the Treasury, shall to wind up its affairs. Any balance remaining after the prescribe, nor, when required by such rules and regula- payment of all its debts shall be paid to and become the tions, except as permitted by licenses granted by the cor- property of the United States, and thereupon the corporaporation. The corporation shall, however, grant licenses tion shall be dissolved. for any such sale, or any such offer for sale or for subscrip- SEC. 10. Any and all notes and obligations issued by the tion, which it shall determine to be consistent with the corporation shall be exempt, both as to principal and foregoing purposes. Shares of stock of any corporation or interest, from all taxation now or hereafter imposed by association without nominal or par value shall, for the pur- the United States, any State, or any of the possessions of poses of this act, be deemed to be of the par value of $100 the United States, or by any local taxing authority, except each. Any securities which upon the date of the approval (a) estate or inheritance taxes, and (b) graduated addiof this act are in the possession or control of, or have been tional income taxes, commonly known as surtaxes, and hypothecated by, the corporation, association, or obligor excess-profits and war-profits taxes, now or hereafter issuing the same shall not be deemed to have been issued imposed by the United States, upon the income or profits prior to the date of the approval of this act, within the of individuals, partnerships, associations, or corporations. meaning hereof. Nothing in this act shall be construed The interest on an amount of such notes and obligations Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FEBRUARY 1,1918. FEDERAL RESERVE BULLETIN. 99 the principal of which does not exceed in the aggregate Net earnings of the banks, i. e., the excess of $5,000 owned by any individual, partnership, association, earnings over current expenses, totaled or corporation, shall be exempt from the taxes provided $11,202,992, or at the rate of 18.9 per cent on for in subdivision (b) of this clause. The corporation, an average aggregate paid-in capital for the including its franchise and the capital and reserve or surplus thereof, and the income derived therefrom, shall be year of $59,260,000, compared with 9.8 per exempt from all taxation now or hereafter imposed by the cent for the first six months of 1917 and about United States, any State, or any of the possessions of the 5 per cent for the calendar year 1916. It is United States, or by any local taxing authority, except thus seen that the financial results of operation that any real property of the corporation shall be subject were especially favorable during the second to State, county, or municipal taxes to the same extent, according to its value, as other real property is taxed. half of the year, when the discount demands SEC. 11. If any clause, sentence, paragraph, or part of upon the Federal Reserve Banks in connection this act shall, for any reason, be adjudged by any court of with the loan operations of the Government competent jurisdiction to be invalid, or, in case any court caused a much larger employment of the banks7 of competent jurisdiction shall adjudge to be invalid any funds than during the earlier portion of the provisions hereof in respect of any class or classes of securities, such judgment shall not affect, impair, or year. Three banks report net earnings for the invalidate the remainder of this act, but shall be confined year in excess of 20 per cent on their average in its operation to the clause, sentence, paragraph, part, paid-in capital; three other banks show net or subject matter of this act directly involved in the conearnings between 15 and 20 per cent, while the troversy in which judgment shall have been rendered. remaining six banks show net earnings between SEC. 12. The term securities, as used in this act, includes stocks, bonds, notes, certificates of indebtedness, and 12 and 15 per cent. To the total net earnings other obligations. above shown should be added the net profits SEC. 13. The right to amend, alter, or repeal this act is carried over from 1916, $649,302, and mishereby expressly reserved. cellaneous adjustments in the profit and loss account amounting to $10,529, making a total EARNINGS AND EXPENSES OF THE of $11,862,823. FEDERAL RESERVE BANKS. Deductions from this total, $1,633,914, com- Total earnings of the Federal Reserve Banks prise the cost of notes paid for but not yet for the calendar year 1917 were $15,438,858, issued by the banks, the premium on United compared with $4,955,343 for the calendar States bonds, also special funds set aside to cover year 1918, while total current expenses were depreciation on United States securities owned $4,235,866, compared with $2,204,344 for the by the banks, leaving $10,228,909 as the net previous year, Current expenses for the year profits on December 31,1917. Over two-thirds under review include $2,669,585 of expenses of of this amount, or $6,801,726, represents the operation proper, $1,111,636—the cost, in- amount of dividends paid to member banks cluding postage, expressage, insurance, and during the year, including certain small adjustother expenses incident to the issue and ments in the dividend account. The balance of redemption of Federal Reserve notes and bank $3,427,183 was distributed as follows: $1,134,234 notes, $299,823—depreciation of bank build- was pail by six banks as franchise tax to the ings, furniture, and equipment, and $154,824 Government; an equal amount was carried by the excess of the cost of operation of the these banks to surplus, while $1,158,715 was transit department over the total of service carried to profit and loss by the other six banks. charges collected by those Federal Reserve Over 45 per cent of the total earnings for the Banks showing a deficit from operation of this year, as against 20.7 per cent the year before, department. The total is exclusive of expenses was from bills discounted; 32.2 per cent, as of the fiscal agent departments. These ex- against 31.5 per cent from acceptances bought penses are treated separately, being reimbursed in the open market; 15.3 per cent, as against by the United States Treasury Department- 22.3 per cent from United States securities; Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

100 FEDEEAL BESEKVE BULLETIN. FEBRUARY 1,1918. about 3 per cent came from the sale of transfer this account a total of $305,421. At the end drafts, and the remainder from municipal of the year the furniture and fixtures account warrants, profits on United States securities was completely charged off by a number of sold, penalties for deficient reserves, commis- banks, leaving a balance of $133,396 at the sions, and sundry smaller profits. opening of 1918, representing the combined Expenses of operation of the banks proper, furniture, fixtures, and vault account. exclusive of their transit and fiscal agent de- The Richmond bank owns a banking house partments, were $2,669,585, compared with for its branch in Baltimore and ground upon $1,684,501 for the calendar year 1916. Of which to build in Richmond. Dallas owns a the total, about 28 per cent went as compen- banking house, while Atlanta and San Fransation to the clerical staff and 23.2 per cent cisco own ground on which they propose to erect as salaries to bank officers. Less than 9 per bank buildings for their own use. The total cent of the total operating expense is represented amount reported at the close of the year by by contributions of the banks for the support of these four banks and Philadelphia under the the Federal Reserve Board. Rent paid by all head of "Bank premises" is $707,611, combanks, except Dallas, constitutes less than 7 pared with $368,222 at the beginning of the per cent of the total expenses of operation, while year. the cost of printing and stationery accounts for Disbursements of the transit departments, about 5.4 per cent of these expenses. Other not included in the banks' operating expenses, large items of operating expense, in the order totaled $844,305. As an offset against these of their importance, were postage, insurance, disbursements the banks received $704,670 of directors7 fees and per diem allowances, com- service charges for handling items received for pensation to special officers and watchmen, and collection. Aggregate deficits of $154,824 resalaries not specified. ported by 7 banks were included among the Current expenses are exclusive of $183,764 current expenses of the banks, while excesses expended on furniture, fixtures, and vault of service charges appear among the earnings of account. During the year the banks wrote off 5 banks. Earnings and expenses of each Federal Reserve Bank and of the system as a whole for the calendar year 1917. EARNINGS. Boston. Y N o e r w k - . d P el h p i h la i - a. C la le n v d e . - m R o ic n h d - . Atlanta. c C a h g i o - . Lo S u t. is. M ap i o n l n is e . - City. Dallas. c F S i r s a a c n n o - . Total. Billsdiscounted and bough I: Bills discounted—Members and Federal Reserve Banks S571,117$21 ; ,455,5333370,359 §375,169 $418,629 $231,636 543 $347,871 $311,376 $438,831 $198,571 $292;982 $6,950,617 Acceptances bought in market 502,397 1,843,325 474,653 496,711 201,008 102,311 394,340 180,601 148,531 171,112 149,006 308,596 4,972,591 Investments: United Statessecurities. 94,785 378,668 123,875 317,924 96,143 140,820 443,958 110,301 97,936 256-.,792 159,432 147,355 Municipal warrants 5,203 66,470 18,170 48,132 560 3,629 13,691 4,479 5,137 11,935 215,119 Profits realized on United Statessaciirities 11,102 14,335 13,768 24,261 16/712 25,569 25,196 4,008 11,250 146,201 Transfers—Net earnings 108 339 14,022 17,134 170,634 57,920 45,983 45,570 34,027 64,363 450,100 Deficient reserve penalties, including interest 6,105 18,565 6,878 17,844 13,527 12,223 14,968 4,468 37,396 12,968 18,222 194,526 Commissions received 38,538 45,476 Net service chargesreceived in excess of transit department disbursements. 4,387 1,564 2,726 i,129 383 15,189 Sundry profits.... . 253 32,857 7,917 3,181 1,208 7,196 4,940 ',436 1,112 4,202 52 81,050 Total earnings 1,198,008 4,848,2911,015,959 1,297,244 770,009 541,822 2,022,278 736,774 955,950 569,430 854,75515,438,858 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FEBRUARY 1,1918. FEDEBAL BESERVE BULLETIN. 101 and expenses of each Federal Reserve Bank and of the system as a whole for the calendar year 1917—Continued. CURRENT EXPENSES. Boston. d P el h p i h la i - a. C la l n ev d e . - m R o ic n h d - . Atlanta. Chicago. Lo S u t. is. M ap i o n l n is e . - K C a i n ty sa . s Dallas. F c S i r s a a c n n o - . Total. Expenses of operation: 'Assessments account expenses Federal Reserve Board $21,226 $50,252 $22,057 $25,783 $14,258 810,154 $30,021 $12,733 $10,198 $13,118 $11,439 $16,56C $237,795 Federal Advisory Council (fees and traveling 445 650 350 653 432 479 827 405 150 370 150 15C 5,081 Governors' conferences (including traveling 539 552 174 251 337 432 711 625 665 398 944 5,928 Federal Reserve agents' conferences (including traveling expenses)... 110 16' 168 243 11! 208 215 Salaries- Bank officers 43,550 129,247 46,206 46,678 33,200 36,471 63,761 48,688 37,101 37,782 41,051 56,657 620,392 Clerical staff 49,039 228,485 42,615 44,861 35,303 37,893 85,865 55,236 31,926 38,773 39,940 746,827 Special officers and watchmen 604 11,017 8,311 4,35: 700 3,424 10,289 2,12: 1, 1,419 2,782 434 47,111 All other. 29,534 2,541 1,882 5,138 2,043 816 1,062 2,981 160 46,157 Directors7 fees 4,060 12,090 3,590 2,120 3,020 2,188 2,050 5,450 3,740 3,975 1,575 2,372 46,230 Per diem allowance 1,010 950 1,320 1,230 2,540 590 1,640 940 2,540 815 465 15,120 Trave ling expenses. 711 1,344 V361 1,571 1,806 2,471 961 1,843 1,506 5,313 1,132 20,019 Officers' and clerks' L R e e t g r n a a t v H . e e li e n s g expenses 1 2 5 , , 4 2 9 4 0 2 6 0 1 5 2 5 , ,5 6 5 0 1 5 9 1 , ,7 0 1 0 7 6 0 0 3 1 2 6 , , 9 0 6 5 0 2 4 5 0 5, 6 5 8 6 0 0 9 0 7 1 1 2 , , 0 1 6 6 5 0 7 3 0 22 2 1 , , , 9 2 7 1 2 5 5 7 0. "i 1 3, , " 2 0 1 7 9 7 5 1, , 5 6 3 0 6 6 0 0 1 S 76 2 1, , 1 4 3 0 9 0 1 3 1 3 , , , 8 3 6 2 6 2 9 3 5 1 1 7 1 5 8 5 , , , 3 6 9 5 2 4 3 8 8 Taxes and fire insur- 8,850 ance 430 13 2,629 1,211 74 1,184 104 5,645 Telephone.... 4,452 6,464 2,803 1,69 685 535 1,906 711 1, 810 870 2,313 24,274 Telegraph 565 3,216 325 81 657 843 815 769 699 565 585 2,371 12,229 Postage 5,507 17,374 1,470 7,940 5,210 6,826 14,362 9,477 6,552 8,838 3,166 3,203 89,925 3,036 12,907 U86 4,692 4,116 2,483 9,510 2,906 5,030 1,234 8,424 6,960 61,112 Insurance and premiums on fidelity bonds 2,647 4,994 4,700 7,416 2,202 2,032 5,876 2,101 2,070 1,871 3,851 3,437 43,197 Light, heat, and power. 1,651 1,426 725 820 175 2,397 1,185! 1,468 464 10,311 Printing and stationery 8,004 35,067 7,311 7,544 9,723 7,063 18,002 4,926 7,475 7,314 12,180 18,407 143,016 Repairs and alterations. 1,289 1,039 233 8,828 11,296 28 528 386 1,267 287 2,473 1,506 29,160 All other expenses 26,191 100,830 9,183 5,404 15,812 37,578 11,490 4,602 17,388 5 ~~ 10,966 249,156 Total expenses of operation 193,531 704,278 163,955 194,941 141,095 146,748 _318,043 177,938 125,101 155,337 145,220 203,396 2,669,585 Cost of Federal Reserve notes issued, including expressage, insurance ,etc. 68,954 343,765 70,340 91,256 58,903 54,808 159,825 49,363 48,679 30,911 34,998 1,054,183 Miscellaneous charges account note issues 15,010 1,887 3,069 3,626 2,314 1,: 1,355 20,886 8,077 57,453 Depreciation of furniture and equipment 14/9741 3,782 30,232 25,726 8,177 32,225 6^088 41,364 38,353 32,325 28,142 261,388 Depreciation of bank premises 28,435 2,500 7,500 38,435 Disbursements of transit department in excess of net service charges received 8,256 66,283 22,120 14,594 2,277 8,196 33,098 154,824 Total current expenses. 285,715 1,129,336 262,084 334,092 257,785 214,510 512,407 234,618 210,201 271,451 215,956 307,711 4,235,866 Net earnings for year 1917.. 912,293 3,718,955 753,875 983,152 512,224 327,312 ,509,871 502; 158 418,137 884,499 353,474 547,044 .1,202,992 Per cent of average paid-in capital 17.4 28.2 14.1 14.9 14.8 13.2 20.6 15.9 16,8 12.9 13.7 18.9 1 Credit. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

102 FEDERAL RESERVE BULLETIN. FEBRUARY 1,1918. Profit and loss account of each Federal Reserve Bank and of the system as a whole for the calendar year 1917. Boston. Y N o e r w k. d P el h p i h la i - a. C la le n v d e . - m R o ic n h d - . Atlanta. Chicago. Lo S u t. is. M ap i o n l n is e . - K C a i n ty s . as Dallas. F c S i r s a a c n n o - . Total. Earnings - $1,198,00814,848,291$1,015,959$1,297,244$770,009$541,822$2,022,278$736,774$628,338$955,950$569,430$854,755$15,438,858 Current expenses 285,715 1,129,336 262,084 334,092 257,785 214,510 512,407 234,618 210,201 271,451 215,956 307,711 4,235,866 Net earnings for year 912,293 3,718,955 753,875 963,152 512,224 327,312 1,509,871 502,156 418,137 684,499 353,474 547,044 11,202,992 Profit and loss account Jan. 1,1917 11,597 163,064 89,966 94,797 11,664 10,120 61,978 12,748 44,542 91,506 41,903 15,417 649,302 Miscellaneous adjustments in profit and loss during year 10,654 2,127 2-2,127 1125 10,529 Total 923,890 3,892,673 843,841 1,057,949 523,888 337,432 1,573,976 514,904 460,552 775,880 395,377 562,461 11,862,823 Less: Cost of Federal Reserve currency not yet issued to bank (including expressage, insurance, etc.) 33,667 445,248 14,320 43,001 42,508 578,744 Premium on United States bonds 209 470 159,515 75,462 1,407 445,854 Reserved for depreciation on United States bonds 138,267 205,880 50,000 24,909 77,603 * 21,657 91,000 609,316 Total deductions. 171,934 651,128 209,470 50,000 39,229 280,119 21,657 117,970 1,407 91,000 1,633,914 NetprofitsDec. 31,1917. 751,956 3,241,545 843,841 848,479 473,888 298,203 1,293,857 514,904 438,895 657,910 393,970 471,461 10,228,909 Dividends paid 597,829 1,941,642 622,150 715,614 240,944 215,972 860,058 284,566 363,876 360,236 187,744 394,490 6,785,121 Dividends accrued and paid on surrendered stock including miscellaneous adjustments in dividend account 3,927 1,177 1,453 554 2,231 2,201 19 4,267 490 286 16,665 Total dividends paid during year 601,756 1,942,819 623,603 716,168 240,944 218,203 862,259 284,566 363,895 364,503 188,234 394,776 6,801,726 Profit and loss Dec. 31, 1917j after payment of dividends 150,200 1,298,726 220,238 132,311 232,944 80,000 431,598 230,338 75,000 293,407 205,736 76,685 3,427,183 Distribution of profit and loss: Paid to Government account franchise tax 75,100 649,363 116,472 40,000 215,799 37,500 1,134,234 Carried to surplus account 75,100 649,363 116,472 40,000 215,799 37,500 1,134,234 Profit and loss Jan. 1,1918 220,238 132,311 230,338 293,407 205,736 76,685 1,158,715 Dividends paid to 12-31-17 12-31-17 6-30-17 6-30-1712-31-1712-31-17 12-31-1712-31-1612-31-17 6-30-17 6-30-1712-31-16 i Credit. * Amount paid to the Chicago Federal Reserve Bank in adjustments of dividends due to banks transferred from the Minneapolis to the Chicago district. 3 Includes $6,500 for abrasion on gold coin. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FEBRUARY 1,1918. FEDERAL RESERVE BULLETIN. 103 Transit department disbursements and net service charges of each Federal Reserve Bank and of the system as a whole for the calendar year 1917. DISBURSEMENTS. Boston. Y N o e r w k. d P el h p i h la i - a. C la le n v d e . - m R o ic n h d - . Atlanta. c C a h g i- o. Lo S u t. is. M ap i o n l n i e s. - K C a i n ty s . as Dallas. F c S i r s a a c n n o - . Total. Expenses of operation: Salaries- Bank officers $3,563 $3,000 $469 $725 $2,169 $9,926 Clerical staff $51,854 $58,871 $55,134 39,950 29,254 20,279 $35,042 15,868 $23,799 $28,631 27,292 $28,922 414,896 All other 228 52 6 655 941 Officers' and clerks' traveling expenses 631 213 201 1.045 Legal fees 185 37 1 098 1 320 Rent 7,041 6,590 1,630 2,232 1,200 2,750 5,013 1,445 3,000 1,600 750 33,251 Taxes and fire insurance 65 35 204 60 28* 392 Telephone 53 57 55 36 288 247 48 26 24 834 Telegraph 61 345 32 1 15 78 104 127 312 1,075 Postage 19,157 22,294 17,939 12,626 10,659 8,278 8,578 7,799 8,951 17,544 9,353 9,769 152,947 Expressage 8,027 28,850 11,756 66 480 11 466 969 2,301 14,262 67,188 Insurance and. premiums on • fidelity bonds.. 894 880 1 391 488 130 240 656 525 815 33 6 052 Light, heat, and power 1,585 235 138 747 148 600 5,118 304 240 366 9,481 Printmg and stationery 5,350 10,942 3,780 5,790 2,271 2,294 6,157 19 4,121 3,133 4,924 5,077 53,858 Repairs and alterations 107 118 420 48 2,106 152 52 356 3,359 All other expenses, not specified. 1,938 17,746 4,652 2,819 886 5,033 4,449 726 544 1,714 3,200 43,707 Total expenses of operation.. 96,132 147,206 96,883 68,812 48,498 39,498 60,886 34,692 41,361 52,465 49,694 64,145 800,272 Depreciation of furniture and equipment 4,818 15,754 2,688 10,746 1,640 3,100 2,441 2,846 44,033 Total disbursements 96,132 147,206 101,701 84,566 51,186 50,244 60,886 36,332 44,461 54,906 52,540 64,145 844,305 SERVICE CHARGES. Member banks 86,670 128,271 93,507 60,964 43,028 30,042 110,243 32,821 15,714 28,945 13,864 693,063 Other Federal Reserve Banks 12,139 17,762 16,048 26,017 22,592 25,091 17,529 22,299 20,542 34,603 25,445 20,001 260,068 Total service charges received. 146,033 109,555 86,981 65,620 55,133 127,772 71,293 53,363 50,317 54,390 33,865 953,131 Service charges paid other Federal Reserve Banks 10,933 65,110 29,974 17,009 10,047 7,166 65,322 32,235 2,773 3,607 1,467 2,818 248,461 Service charges, net 87,876 80,923 79,581 69,972 55,573 47,967 62,450 39,058 50,590 46,710 52,923 31,047 704,670 Transit department disbursements in excess of net service charges received 8,256 66,283 22,120 14,594 14,387 2,277 11,564 12,726 16,129 8,196 33,098 189,635 1 Excess service charges. Fiscal agent department disbursements of each Federal Reserve Bank, amounts reimbursed, and balances reimbursable by the United States Treasury, to the end of the calendar year 1917. Boston. Y N o e r w k. d P el h p i h la i - a. C la le n v d e . - m R o ic n h d - . Atlanta. Chi- Lo S u t. is. M ap i o n l n i e s. - K C a i n t s y a . s Dallas. F c S i r s a a c n n o - . Total. Total disbursements to Dec. 31, 1917 $294,499 $894,485 $186.008 $237,581 $66,921 $70,380 $456,845 $191,516 $106,338 $114,172 $92,798 $376.219 $3,087,762 Amounts reimbursed by United States Treasury to Dec. 31,1917. 151,288 534,135 85,975 98,333 23,700 24,686 169,417 66,667 52,211 27,722 27,793 128,615 1,390,542 Balances reimbursable 143,211 360,350 100,033 139,248 43,221 45,694 287,428 124,849 54,127 86,450 65,005 247,604 1,697,220 Cost of furniture and equipment,including vaults, also biink premises. Boston. Y N o e r w k. d P el h p i h la ia - . C la le n v d e . - m R o ic n h d - . Atlanta. Chicago.St.Louis. M ap i o n l n is e . - K C a i n t s y a . s Dallas. Sa c n i s F co r . an- Total. Balance as reported Jan, 1, 1917 $15,410 $20,164 $12,000 $12,282 i $28,109 $28,689 $59,274 $41,961 $37,164 ^$255,053 Additional purchases during calendar year ending Dec. 31,1917 $14,974 18,771 25,822 25,479 6,641 4,116 23,538 14,691 12,583 9,007 $28,142 183,764 Total 14,974 34,181 45,986 37,479 18,923 32,225 52,227 73,965 54,544 46,171 28,142 438,817 Depreciation charged during calendar year ending Dec. 31,1917 14,974 8,600 45,986 28,414 18,923 32,225 7,728 44,464 40,794 35,171 28,142 305,421 Balance Jan. 1,1918.. 25,581 9,065 44,499 29,501 13,750 11,000 133,396 Bank premises 10,000 300,000"140*875 136,736 120,000 707,611 " i Refund of $195.50 deducted. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

104 EEDEBAL BESEBVE BULLETIN. FEBRUARY 1,1918. Cost of unissued Federal Reserve notes. San Fran- Atlanta St. Louis Kansas cisco (in- (includ- (includ- City cluding Boston. Y N o e r w k. d P el h p i h la ia - . C la le n v d e . - m R o ic n h d - . ing Chicago. L i o n u g is- M ap i o n l n is e . - (in i c n l g ud- Dallas. , S S p e o a k t a tl n e e , , Total, New ville Omaha and Orleans branch). branch). Portland branch). branches). l Balance as reported Jan. 1, I 1917 $29,230$235,599 $27,708 .$39,544 $9,355 $20,315 167,958 $19,763 -$16,295 128.599 $8,940 1$503,306 Additional cost during calendar year ending Dec. 31,1917 . .. 73,391 553,414 43,144 51,712 49,548 49,401 134,868 45,767 39,001 62,588 32,132 $34,9981,169,964 Total 102,621 789,013 70,852 91,256 58,903 69,716 202,826 65,530 55,296 91,187 41,072i 34.9981,673,270 Cost of Federal Reserve notes charged to current expenses during calendar year ending Dec. 31,1917.. 102,621 789,013 70,340 91,256 58,903 69,128 202,826 49,363 42,381 91,187 30,911 34,9981.632,927 i Balance Jan. 1,1918.. 512 I 588 16,167 12,915 10,161 40,343 1 Includes cost of Federal Reserve bank notes amounting to $983.82. Earnings and current expenses, by months, for the calendar year 1917-j of each Federal Reserve Bank and the system as a whole. EARNINGS. Atlanta (includ- New Phila- Cleve- Rich- ing St. Minne- Kansas Boston. York. delphia. land. mond. O N rl e ea w ns Chicago. Louis. apolis. City. Dallas. F ci r s a c n o - . Total. branch). January $53,987 $120,886 $65,114 $44,,597 $47,800 $88,968 $31,400 $32,121 $29/731 $20,826 $49,982 February.. 43,978 109,043 45,091 52,713 35,436 26,584 68,040 31,283 31,310 31,311 24,678 34,413 533,880 March 45,168 91,582 ,44,794 51,150 37,496 21,128 63,591 33,052 31,094 34,889 22,943 31,090 507,977 April....... 53,134 107,644 47,812 54,016 44,603 23,870 68,272 35,947 34,082 34,955 28,886 38,725 571,946 May 53,867 156,521 72,047 66,220 28,271 89,149 43,806 43,184 42,511 34,747 52,476 738,468 June 437,386 78,704 73,082 58,850 28,873 136,407 47,167 39,952 72,814 33,119 59,645 155;451 July. 104,597 389,244 87,023 78,742 26,861 192,247 53,281 49,422 88,498 36,581 62,530 235,888 August..... 110,323 233,893 90,314 107,090 65,074 33,380 160,522 55,826 60,826 97,756 45,805 75,312 138,121 September. 108,553 315,977 95,853 117,730 68,800 44,330 170,449 66,900 70,234 92,918 53,031 80,282 285,057 October 126,746 672,011 85,419 131,396 69,299 73,964 247,193 91,293 58,689 106,034 79,296 91,571 832,911 November. 161,013 AI,033,209122,933 193,726 85,379 85,520 336,516 96,824 83,836 166,516 88,510 119,352 573;334 December.. 247,1901L,180,895 197,575 306,26513"3";,557 101,241 399,360 147,269 87,459 158,017 100,625 159,377 218,830 Total 1,198,008 4,848,2911,015,959 1,297,244 765,622 541,822 2,020,714 734,048 622,209 955,950 569,047 854,75515,423,669 Net service charges in excess of transit department disbursements 4,387 1,564 2,726 6,129 383 15,189 Total earnings., 1,198,008 4,848,2911,015,9591,297,244 770,009 541,822 2,022,278 736,774 955,950 569,430 854,75515,438,858 CURRENT EXPENSES. January $11,736 $53,558 $11,354 $12,104 $10,395 $10,972 $18,968 $12,428 $7,705 $11,040 $10,022 $11,244 $181,526 February 14; 088 61,972 15,548 15,153 8,147 11,424 23,194 12,183 9,892 11,085 9,271 11,416 203,373 March 14,908 66,284 15,340 15,207 8,672 10,882 25,960 11,391 8,995 12,537 9,407 10,984 210,567 April 15,667 61,834 15,703 18,178 8,779 10,631 31,639 11,677 11,889 12,374 11,076 219,441 May..... 14,656 58,375 15,145 20,215 10,483 10,566 34,175 15,228 11,166 13,078 11,262 223,337 June 18,226 65,532 19,226 23,006 77,994 9,717 30,258 14,495 11,288 11,789 25,627 33;481 340,639 July 1... 20,785 73,825 13,530 20,731 11,867 12,753 60,844 16,194 13,378 15,934 10,921 17,132 287,894 August 22,077 90,565 18,098 17,048 10,567 13,232 36,949 15,961 12,608 18,415 13,579 20,259 289,358 September 24,428 96,832 23,618 24,934 12,425 25,957 43,408 19,883 18,533 26,535 24,952 20,612 362,117 October 29,841 136,796 28,240 28,244 11,337 29,502 51,845 33,690 24,655 32,187 23,017 26,830 456,184 November 30,815 157,874 25,456 33,251 16,171 23,787 59,441 34,034 17,977 31,980 17,810 24,994 473,590 December 60,232 139,606 38,706 91,427 70,948 42,810 95,726 37,454 62,115 66,301 52,368 75,323 833,016 Total 277,4591,063,053 239,964 319,498257,785 212,233 512,407 234,618 210,201 263,255 215,956 274,613 4,081,042 Transit department disbursements in excess of net service charges received 8,256 22,120 14,594 2,277 8,196 33,098 154,824 Total current expenses 285,7151,129,336 334,092 257,785 214,510 512,407 234,618 210,201 271,451 215,956 307,711 4,235,866 NOTE.—Increases in current expenses shown for the months of June and December are due to the inclusion of special charges account depreciation of furniture and equipment, also cost of Federal Reserve currency during these two months. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FEBRUARY 1,1918. FEDEKAL KESEEVE BULLEHH. 105 Reducing Clerical Costs. fer of the funds being largely for the use of the Treasurer. During the last week of the period [James Stanley in the February " System."] the balances of the interior banks increased at Small banks belonging to the Federal Rethe expense of New York in anticipation of the serve system rediscount a greater amount of final payment on the second Liberty loan. customers' paper in a number of separate pieces Deposits of gold, principally at New York, than do some of the larger banks, which pass Philadelphia, Chicago, and San Francisco, only a few of their biggest and best customers' account for the increase in the banks' fund of notes to the nearest branch for rediscounting. 47.1 millions during the four-week period, This means a large number of individual finanagainst a loss of only 1.3 millions in the total cial statements to be prepared and copied to go balances of the agents' holdings, resulting in a with the notes rediscounted by the small bank. net gain in the fund of 45.8 millions. The com- To shorten the routine of getting these statebined banks' and agents' balances on January ments ready a North Dakota bank has all its 17, 1918, totaled $845,166,500, compared with customer statement blanks printed in duplicate. $272,320,000 in the fund January 1, 1917. Whenever a customer submits a statement, he The total of the balances in the fund January automatically furnishes a carbon copy, too. 1, 1918, was $808,247,000, indicating a net Thus, the original is sent on to the reserve branch increase for the year 1917 of $535,927,000. with the customer's note and the duplicate is Shifting of credits in the fund resulted in retained by the bank for its information. considerable gains in the balances of New York, Boston, Philadelphia, San Francisco, and St. Louis, Chicago and Cleveland balances indi- GOLD SETTLEMENT FUND. cating the largest decreases. Changes in the ownership of gold in the fund amounted to Shifting of funds between New York and the 2.47 per cent of the obligations settled, as interior, including the concentration at New against 2.27 per cent for the preceding four- York of the final installment payments on the week period, and 1.64 per cent for the period second Liberty loan and of amounts received from May 20, 1915, to January 17, 1918. for certificates of indebtedness issued in antici- Below are given figures showing changes in pation of tax payments, account largely for the fund between December 20, 1917, and the continued heavy volume of clearings and January 17, 1918, inclusive: transfers effected through the gold-settlement fund for the four weeks ending January 17, Amounts of clearings and transfers, Federal reserve hanks, 1918. Combined clearings and transfers from from Dec. %1', 1911', to Jan. 17, 1918, inclusive. December 20, 1917, to January 17, 1918, both [In thousands of dollars.] inclusive, totaled $2,980,359,000, averaging $745,089,750 per week, compared with a like Total Balances Transfers. clearings. adjusted. average of $904,916,750 for the preceding four weeks, which witnessed the payment of the Settlement of—- Dec 27,1917 727,137 47,965 130,000 second installment on the second Liberty loan. Jan. 3. 1918 536,945 48,534 36,400 Jan. 10,1918... :.... 690,242 43,419 63,500 The balance to the credit of New York in the Jan. 17, 1918 723,635 50,432 72,500 fund declined sharply in favor of the interior Total 2,677,959 190,350 302,400 during the second week of the period. The fol- Total since Jan. i, 1918 1,950,822 . 142,385 158,500 Total for 1917 24,319,200 2,154,721 2,835,504.5 lowing week, however, witnessed a complete Total for 1916, including transfers. •5,633,966 Total for 1915, includ.Dg transfers. 1,052,649 reversal, and New York's balance gained 73.9 Total clean'n • and transmillions, 43.8 mi lions through transfers and fers. Mav 2 . ±ttl"», to Jan. 17,191° .............. xi,950, .41.5 settlement and 30.1 millions by deposits, trans- I 37528—18 6 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

106 FEDERAL EESEBVE BULLETIN. FEBRUARY 1,1918. Changes in ownership of gold. [In thousands of dollars.] Total changes from May Total to Dec. 20,1917. From Dec 20,1917, to Jan. 17,1918,]nclusive. 20, 1915, to Jan. 17, 1918. Balance to Federal Reserve Bank of— credit Dec. 20,1917, Balance Decrease. Increase. plus net Jan. 17, Decrease. Increase. Decrease. Increase. deposits of 1918. gold since that date. Boston o 22,630 21,101 37,425 16,324 38,954 New York 573,013 50,582 34,6S9 15,893 588,906 Philadelphia 49,929 14,522 31,452 io,930 68 859 Cleveland . 99,862 . 58,443.2 44,830.2 13,613 86,249 17,081 28,853 19,820 9,033 8 048 Atlanta . .... 54,449 8,785 15,364 6 579 61 028 88,547 74,608 45,228 29,380 59 167 St Louis ........ 13,511 5,914.4 20,820.4 ii,906 28,417 Minneapolis . . 14,158 5,141 10,262 5,121 19 279 61,550.5 35,600.1 31,531.1 4,069 57 481.5 Dallas 47,275.5 19,303.7 17,737.7 1,566 45,709.5 San Francisco 104,020 25,769 39,463 13,694 117,714 Total 573,013 573,013 348,622.4 348,622.4 73,554 73,554 588,908 588,906 Gold settlement fund—Summary of transactions from Dec. 20, 1917, to Jan. 17, 1918, inclusive. [In thousands of dollars.] Gold. Transfers. Weekly statements, Dec. 20, 1917, to Jan. 17, Jan. 17,1918. 1918,' Balance balance Federal Reserve Bank of- m la e s n t t s t D at e e c - . in a f f t u e n r d 20,1917. d W ra i w th n - . Deposited. Debit. Credit. de N b e it t s. d T e o b t i a ts l . c T re o d t i a t l s. cr N ed e i t ts. b c u l s o i s n e e o s f s. Boston 14,101 000 9,000 15,000 20,500 11,471 212,862 223,686 22,295 37,425 New York..... 6,002 520 45,100 108,400 146,000 66,830 859,191 805,698 13,337 34,689 Philadelphia... 12,837 23,930 25,615 5,000 9,000 7,664 290,698 303,628 20,594 31,452 Cleveland...... 60,930 5,750 3,263.2 37,000 30,000 46,780 259,648 253,035 40,167 44,830. Richmond. 23,407.2 118.2 5,564 14,000 4,619 121,184 126,151 9,586 19,820 Atlanta 9,970 10,290 9,105 3,900 3,331 75,330 78,009 6,010 15,364 Chicago 79,280.2 37,035 32,362.8 50,000 23,000 25,585 361,587 359,207 23,205 45,228 St. Louis .. 10,842 5,500 572.4 161,822 176,728 14,906 20,820.4 Minneapolis... 10,328.5 6,037.5 850 5,587 75,207 80,328 10,708 10,262 Kansas City... 36,971.7 3,004 1,632.4 26,000 5,000 105,148 122,079 16,931 31,531.1 Dallas 17,590 1,086.3 2,800 7,500 5,000 1,414 54,894 55,828 2,348 17,737.7- San Francisco. 19,264 10,400 16,905 39,500 60,000 17,069 100,388 93,582 10,263 39,463 Total. 301,523.6 105,671 152,769.8 302,400 302,400 190,350 2,677,959 2,677,959 190,350 348,622.4 Federal Reserve agents1 fund—Summary of transactions from Dec. 20', 1917, to Jan. 17, 1918. [In thousands of dollars.] Balance Balance last state- Gold Gold Balance last state- Gold Gold Balance Federal Reserve agent at— ment, with- depos- Jan. 17, Federal Reserve agent at— ment, with- depos- Jan. 17, Dec. 20, drawn. ited. 1918. Dec. 20, drawn. ited. 1918. 1917. 1917. Boston 2,000 4,000 6,000 St. Louis 27,405 2.4 5,500 32,902.6 New York 75,000 35,000 40,000 Minneapolis.., 16,500 1,000 6,000 21,500 Philadelphia 55,429 22,435 23,930 56,924 Kansas City... 39,860 500 3,000 42,350 Cleveland 30,000 5,000 35,000 Dallas 8,474 1,000 900 8,374 Richmond 30,000 "5," 666°" 25,000 San Francisco. 41,621 5,615 10,400 46,406 Atlanta 42,970 9,800 10,250 43,420 Chi cag o 128,565 26,342.5 36,435 138,657.5 Total.... 497,824 106,694.9 105,415 496,544.1 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FEBRUARY 1,1918. FEDEKAL EESEKVE BULLETIN. 107 OPERATION OF THE FEDERAL RESERVE CLEARING SYSTEM, DEC. 16, 1917, TO JAN, 15, 1918. ! Fe I o d t c e n a e i m v t r y b a e s a l r ( a n d d R g k r a e e s a i s ) l w . i y e n r n ve F on e I t d t r c b e a i e i c m a t v r y t n a e s l k r o ( a s d u d R g r t a i e e s a n i i s ) l w d . y e d e n r i v s e - ( o d I o t t a h e n i e m l y r b s a d a n d v is k r e t s a r r a w i i c g n n t e s ). I b a t y e n ( m d a b v ( s o b d e t r h a r h a a i a l n g n y b c e d a h ) l n . e e k s d T ( o o U d o n f a n t i i a T i t l t l e y r e m e ( d a a e s v s x S u e c d t r r l a r a u e a t r g s e w i e s o v n ) ) f e . ( o d U n I a t n e i T l i m y t r e e s d a a v d s S e u r r a r t a a e w g r te n e o s ) f . b m b N a e b u e n r e m m r k o s - - f b m N b n a b e o u e n r e m n m r k o - s - - f in on dis- par N b u e m r. - Amount. N b u e m r. - Amount. N b u e m r. - Amount. N b u e m r. - Amount N b u e m r. - Amount. N b u e m r. - Amount. trict. list. Boston 373112,791,930 39,395 55,046i,,782 254 $7,144,060 47,022 524, 72 2,863 $2,084,095 403 249 New York. 58,546.249 43,178 33,8721,,466 95214,277,245 52,792106,695;960 20,009 9,167,627 651 343 Philadelphia.............. 18,043,655 21,335 3,394,645 lOi 81710, 62 47,591 32,438,062 2,233 1,393,038 628 812 Cleveland 4,660,023 23,94011,482,44' 664 3' 005' 355 391 $839,849 27,745 19,987,674 542 375,106 76v 549 Richmond. .... ..} 4,124,583 2" 1,2"6"5 " 700, - 2,165 3,999,109 24,699 14,824,130 551 166,558 53; 284 Atlanta. 2,279,985 12,010 776.,,172 1,582 2,089,110 512 237,928 15,704 7,383,193 . 762 478,774 402 313 Chicago... ! 19,115 19,428 4,,283 1,774 689 28,480 24,087 5,160 1,883 1,109 2,235 St. Louis.... 8,718,931 11,736 254i,,831 205 1,277,238 *352 "230*834 15,338 12,481,834 2,255 761,730 4 479 987 Minneapolis.... .... .j 5,724,470 13,426 2881,,911 1,046 1,771,513 17,135 8,784,834 242 117,167 V781 1,041 Kansas City ! 7,898,002 18,871 512i,,693 814 5,444,643 1,5521,103,218 21,682 23,958,556 833 302,000 I'962 1,527 Dallas 2,351,4821 14,828 957',, 635 565 1,012,167 16,393 9,321,284. 484 179,85.° ' t 633 208 San Francisco......' 3,778,818 16,046 495L,095 504 466,376 4*911 * 990," 20824,486 7,730,497 1,449 4,204,691 1,1C6 Totals: Dec. 16 to Jan. 15 48,549 128,937,223 253,458 84,788,418 49,342 51,487, 7,718 3,402,035 359,067 226688,,522,943' 38,13019,235,176 '7,909 '9,268 Nov. 18 to Dec. 15...44,77,667788 1171,723,439 240,758 84,440,761146,353 58,458, 334,787 31.4,623,152: 33,808 27,179,053 7,82:- 9,321 Oct. 16 to Nov. 15... 47,574 16666,552,773,232,723 64,296,210 45,393 53,089, 325,690 283,938,810; 30,426 17,496,974 '7,826 9,210 Sept. 16 to Oct; 15... 128,271,466 212,935'47,476,204 40,216 44,984, ......293,742 220,732,251 26,797 13,518,566 ' 7,74: 9,052 Aug. 16 to Sept. 15... 306 100,331,694(182,191|41,323,621132,564 40 648, ......251,061 182,303,483 23,492 11,006,515 7,718 8,934 July-16 to Aug. 15... 98,075,9191175,625:40,353,2:8 31,273 37,981, L........ 243,625 176,410,219 1199',553333 9"",701,569 7,68:- 8,837 June 16 to July 15... 76 109,722,258 182,622 41,004,720 33,941 46,782, !.... 255,039197,489,874! 19,10011,637,899 7,686 8,805 May 16 to June 15 97,322,883 179,193 '38,599,461 ,'33,150 38,314, ! ...250,241174,236,7371 16,344 4,414,508 7,65! 8,'89 Apr. 16 to May 15.... 87,370,859 171,093 38,473,163 33,428 36,836, !......... 238,288 160,680,956! 15,925 3, 597,865 7,834 8,926 Mar. 16 to Apr. 15... 60,288,002 168,607132,666,959,32,008 34,693, ! 231,777127,648,503 12,582 2,643,408 7,625 8,607 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

108 FEDERAL BESEBVE BULLETIN. FEB&UAEY 1,1918. INFORMAL RULINGS OF THE BOARD. Below are reproduced letters sent out from the negotiable instruments law, you should time to time over the signatures of the officers mature your 15-day notes, payable in those States and falling due on Saturday or Sunday, or members of the Federal Reserve Board as of Monday, charging 16 or 17 days' interest, which contain information believed to be of as the case may be. The Board is of the opingeneral interest to Federal Reserve Banks and ion that if the collateral note on its face promember banks of the system: j vides for payment 15 days after date, the law | has been complied with, but if, by reason of I the local law of a State you are obliged to Maturity of Notes Due on Sunday or Legal Holidays. j collect this paper one or two days before its (To a Federal Reserve Bank.) apparent maturity or one or two days there- The Board has considered your letter relating after, that you should charge interest accordto the time to be computed on member banks' ingly, for there is no question that you are 15-day collateral notes which fall due on Sat- entitled to interest after maturity up to date of urday or Sunday and are consequently legally payment on any jjaper which you may have matured on Monday in the States which have discounted and which is not paid promptly at adopted the negotiable instruments law, which maturity. It is suggested, however, that you provides that paper falling due on Sunday or a have banks use your own form of collateral legal holiday is payable on the next succeeding notes as far as possible, making those notes business day. It appears that all the States in payable at the Federal Reserve Bank of }rour district have the negotiable instruments Atlanta, in which case their maturity would aw with the exception of Georgia, and that in be governed by the laws of Georgia. Mississippi local law provides that paper falling JANUARY 12, 1918. due on Sunday or a holiday is payable on the next preceding business day. In Georgia the act of 1907 provides that paper falling due on Eligibility of a Note of an Acceptance House or Broker. Sunday or a legal holiday is payable on the (To a Federal Reserve Bank.) next succeeding business day. In discounting any paper regardless of ma- Keceipt is acknowledged of your letter of turity, you should first consult your calendar January 18, in which you ask for a ruling of the and time its actual maturity. For instance, if Board on the question whether the note of an you should on January 26 discount a note run- acceptance house or broker, secured by acceptning for 90 days, you should, as far as notes ances eligible for purchase or rediscount at a payable in Alabama, Georgia, and Florida are Federal Reserve Bank is itself eligible for reconcerned, mature this paper on April 27, as discount by a Federal Reserve Bank when April 26 is a legal holiday in these States, and endorsed by a member bank. you should figure discount for 91 days instead In reply, you are advised that the Board has of 90. If the paper is payable in Mississippi it consistently ruled that the eligibility of any would legally mature on April 25, and you paper offered for rediscount must, in accord-) should figure discount for 89 days. In the ance with the terms of the act, be determined j other States of your district April 26 is not a by the use made of the proceeds of the loan ( legal holiday, and you should therefore mature represented by such paper. In the case you-such paper in those States on April 26 and submit, the note of the acceptance house or figure discount for 90 days. As far as your broker could not be said to have been used for 15-day notes are concerned, you should, in the an industrial, agricultural, or commercial purcase of a note payable in Mississippi, falling pose, since the business of such acceptance due on Sunday, mature it as of Saturday and house or broker is not such as to come within charge 14 days' interest. In the case of a 15- any of these classifications. The fact that the day note payable in Georgia, you should ma- note is secured by eligible paper is immaterial ture it if due on Sunday as of Monday and if the proceeds are not used for one of the purcharge 16 days7 interest, and in Alabama, poses mentioned. Tennessee, and the other States which have JANUARY 21, 1918. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

,1918. FEDEBAL BESEKTE BULLETIN.- 109- Form of Draff* they are figured on a basis of 365 days. The (To a national bank.) bank claims, therefore, the difference from you. Receipt is acknowledged of your letter of You have asked the Board to give you a January 3 Inclosing blank form of draft used ruling in this respect, and after a full discussion by some of your cotton mills which, are pur- of the question it has been decided to rule that chasing cotton from merchants. for rediscounts on transactions between Federal You ask whether there is any objection to Reserve Banks the basis of 365 days to the the form of draft submitted, and also ask to beyear should be applied* informed whether such a draft made payable JANUAEY31 1918. at sight and accepted by the drawee is negotia- ? ble if it contains the following provision: "With interest at the rate of 6 per cent per annum if payment is delayed." Eligibility of Trade Acceptances for Rediscount In reply you are advisee!— (To a corporation.) (a) That the Board knows of no objection-to The Board has given very careful considerathe use of the draft in the form submitted. tion to your letter of November 15, 1917, in (6) If made payable at sight and accepted which you request further information as to the by the drawee it should not be discounted as a effect of the ruling made in the Board's letter of draft or bill of exchange since in. practically allOctober 30. States a draft payable at sight becomes payable The Board's conception of the trade acceptwithout grace as soon as presented or exhibited ance is that it is an instrument which carries to the drawee. This being true, if the holder upon its face the evidence of the commercial presented it for acceptance instead of for pay- character of the transaction which gave it ment the drawer and indorsers would probably birth. The finance paper of the -—•Corporabe released and the holder would have recourse tion issued against drafts drawn by it on dealonly against the acceptor as the party pri- ers and placed in-trust to secure such paper marily liable. Such a draft would not be eli- issued by it in the shape of notes or certificates fible for rediscount with a Federal Reserve gives no indication whatever as to the nature lank since it would not have a fixed maturity of. the security, which may or may not be eliof less than 90 days. To all intents and pur-gible paper. The Board does not concur in poses it would be the promissory note of the your opinion that the statute is satisfied u when acceptor and his liability to the bank would be the proceeds of a note are used for a commercial subject to the limitations of section 5,200^ Re- purpose, regardless of whether or not the maker vised Statutes, of the note is the purchaser of the goods or whether in substance the maker of the note (c) In the opinion of the Board the insertion is extending credit to the actual purchaser/1 of the language suggested would not affect etc., for if the maker of the note in the case cited the negotiability of the instrument if it is conis extending credit to the actual purchaser, it strued to mean that interest at the rate of 6 per cent per annum is to begin to run from date necessarily follows that the • Corporation of maturityo It is inadvisable, however, in any is not itself the actual purchaser but is lending case to insert language the meaning of which is its funds to the purchaser to pay the purchase ambiguous^ and the clause suggested in your price. If such a transaction conforms to the letter is open to this criticism. statute, then any bank could borrow money and lend the proceeds of its note to a customer who JANUARY 17, 1918. would use such proceeds for a commercial purpose, and then set up the claim that its own note would thereby become eligible for redis- Basis £©r Figuring Interest for Rediscount Transactions. count. (To a Federal Reserve Bank.) It appears to the Board that the —— Cor- I am replying to your letter of January 28, poration by issuing notes of this character is in which you inform the Board that, in connec- really raising money for capital requirements tion with rediscounts with Federal Reserve for similar transactions in the future, and that Banks, the point has been raised by one bank the whole plan is in essence a finance operation that it is its habit to figure discounts on a basis rather than a commercial transaction, of 360 days to the year while in your district ? JANUARY 16, 1918. 37528—18-—7 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

110 FEDERAL RESEBVE BULLETOT* FlBEUAET 1, 101S. LAW DEPARTMENT. TTie following opinions of counsel have been negotiates the instrument, it becomes by his authorized for publication by the Board since indorsement a valid note or bill in the hands of the holder. the last edition of the Bulletin: Or as expressed in another part of the text: Bills Payable to the Order of the Drawee. The * * * drawee may be designated A bill made payable to the order of the drawee is not as payee, or the same person may be drawer, negotiable until the drawee as payee has indorsed it. drawee, and aiso payee. In such cose the When it has been accepted and indorsed by the drawee instrument has no inception as an obligation It is a valid negotiable instrument In the hands of a third until its indorsement and delivery by the party, and the drawer is not released, since the terms of payee. his order have been specifically complied with o It would seem clear, therefore, that an DECEMBER 13, 1917, SIR: The accompanying letter from an offi- instrument of the kind described would be cer of one of the Federal Reserve Banks has negotiable after the acceptor who is the payee been referred to this office for an opinion on has indorsed it. It would not be negotiable the questions involved. The writer states: before it is indorsed by the payee, since the holder could not transfer title without this. We have received several inquiries with respect to bills of exchange of the following Under the terms of the bill itself the order character, which are presented to us for pur- of the drawer is to pay to the drawee or his chase or rediscount. The bill is drawn pay- order. The drawee by accepting the bill able to the order of the drawee, accepted and agrees to comply with its terms—that is, to indorsed by the latter, and then negotiated, honor the order of the drawer. As he is or negotiated by the drawer prior to acceptance named as payee he and he alone can fix the and indorsement by the drawee. f The question is whether under either of necessary indorsement to pass title to the these circumstances the drawer is discharged bill. Answering specifically the questions of from liability to a. subsequent holder, in case the writer, therefore, it is the opinion of this the acceptor fails to pay at maturity. office— Under section 8, subdivision 3, of the negoti- (1) That a bill accepted by the drawee who able instruments law, an instrument payable is named as payee and indorsed by the acto order may be drawn payable to the order ceptor is a valid negotiable instrument in the of the drawee wiuhout destroying its negoti- hands of a third party, and that the drawer is ability. As stated in.the text in Norton on not released, the terms of his order having Bills and Notes, fourth edition, page 86, how- been specifically complied with. ever— (2) That a bill made payable to the drawee An instrument in the form of * * * a can not be properly negotiated until the drawee bill where the payee and acceptor, or the as the payee has indorsed it. payee, drawee, and drawer are one and the Respectfully, same person, is sufficient in form as * * * a bill. But since a man can not contract with IL C. ELLIOTT, Counsel. himself, such a writing, unnegotiated, gives To Hon. W. P. G. HARDING, rise to no obligation. If, however, the payee Governor Federal Reserve Board. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FlBEBABY 1, 1918* F1DEBAL BESEBYE BULLETIN 111 SUMMARY OF BUSINESS CONDITIONS JAN. 23, 1917, District No. 1— District No. 2— District No. 3- District No. 4— District No. 5— District No. 6— Boston. New York. Philadelphia. Cleveland. Richmond. Atlanta. Genera! business*.. = .Active. Good; retail trade Active, limited Large volume..... Fair. quiet. only by scarcity of supplies. Crops; Condition.. ..do.. Good... Inactive........... Do. Outlook... ..do- .....do- Extensive prepa- D rations anticipated. Industries ©I the dis- Turning'more Active, but ham- War industries Decreased output Running full...... Handicapped for trict. towards "Govern- pered by trans- active; other by reason of eoai: some labor ment worko portation and production re- weather and fuel difficulties, tarded. other conditions. Construction, build- Little new eonstruc- At minimum....... Very little activity Decrease* <,oo = o = o = =Private building Below average* ing, and engineer- tionexeept on negligible; ing* Gov era merit Government work* work in large volume. Foreign trade*....... Heavy imports of Deereased export Somewhat greater. Restricted......... Very limited. raw material. movement be- ' cause of traffic congestion. Bank'clearings....... Increased.......... Decrease,.......... Small increase..... Increase........... Large volume..... Increase. Money rates ......... Firm ? 4 nd steady...Firm............... Finn.............. Firm.............. Go 6 o p d e r d c e e m n a t. nd at Firm. Railroad, post office, Post office increased.Increased.......... Heavy; Decem- Post-office receipts Railroad, irreeu- Good. railroad de- ber shows in- Increased* | lar; post office, and other receipts. crease. volume large. Fair; considerable Demand greater Scarce and Scarcity and ex= In demand at high Fair. Labor conditions unrest. than supply. inefficient. acting. wages. Unsettled.......... Fair................ Unsettled......... Improving........ Generally satisfac- Unsettled, account Outlook.............. tory. rapid readjustments. Remarks. Increasing demands Course of business Coal and trans- General! activity for capita! pur- and industry portation situa- above normal for poses andGovern- during remainder tion most acute. period of year. ment financing, of winter will descarcity of coal, pend largely on and transporta- success of efforts tion dimcultics to relieve transmaking business portation congeshard to conduct. tion and fuel shortage District No. 7— District No. 8— District No. 9— District No. 10— District No. 11— District No. 12— Chicago* St. Louis. Minneapolis. Kansas City, Dallas, San Francisco, General business*. Good............... Generally good. Fair for the season Good............. Good......... Active. Crops: Condition........ .....do.............. Fair....... Fair.............. Fair.......... Prospects bettered by recent rains* Outlook. acreage Favorable.. More favorable... it. Industries of the dis- Necessary Indus- Busy,, as a rule. Active........... Active........... Active. Very activ®. trict. • tries active. Construction, build- Practically a t a | Dull............ Slow............. Declining In Inactive; seasonal Decreasing, ing, and engineer- standstill. volume. for midwinter. ing. Foreign trade....... Satisfactory.... Large Increase. Bank clearings*.„.«,.,. Decrease. Increase........ Up................ Nearly 50 per cent 31 percent increase Largely increasing. increase. over December, 1916. Money rates......... Finn............... Firm......... Steady..... Steady............ Easy.. ........ Firmer. Railroad, post office, Post-office receipts Increase in post- No change. Railroad, increase; Increasing. and other re- normal. oiiice receipts. post office, ceipts. 41 per cent increase over 1916. Labor conditions Generally satis- Labor scarce....... Good....... Settled with Generally Unsettled, factory. threate ned satisfactory; shortage ot farm some uncmploylabor. mrnt in unskilled trades* Outlook.. Noxnisgivings...... Generally favor- .....da... For general in- Promising.......... Favorable., able. crease of ail business. •Remarks., Prevalent e o a I Heavy snow and Deficient precipiand car short- rain have im- tation, is at age is serious* proved crop con- present an un» ditions, especi- favorable factor. ally wheat; retail trade curtailed : general business satisfactory. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FEDEBAL BESEBVE BXJLLETOT, FEBKUAEf 1/1918. ; GENERAL BUSINESS CONDITIONS. There is given on the preceding page a sum- importations from other countries of this mary of business conditions in the United commodity in order to equip its soldiers. States by Federal Reserve districts. These re- The exchanges of the Boston Clearing House ports are furnished by the Federal Reserve for the week ending January 19, 1918, were Agents, who are the chairmen of the boards of $309,856,871, compared with $239,287,699 for directors for the Federal Reserve Banks of the the corresponding week last year and several districts. Below are the detailed re- $267,479,959 for the week ending January 12, ports as of approximately January 23 : 1918. Building and engineering operations in New DISTRICT NO. 1.—BOSTON. England from January 1 to January 15, 1918, The money market continues firm through- amounted to $4,825,000, as compared with out the district. The general activity of $8,287,000 for the corresponding period of 1917. business, the high cost of raw materials and The receipts of the Boston post office for other costs of production and the subscrip- December, 1917, show an increase of tions to Government securities have taken up $111,710.24, or about 11 per cent more than the surplus funds of banks. Loans have been December, 1916. For the first 15 days of restricted by banks, for the most part, in January, 1918, receipts were about 16 percent, taking care of their own customers. This has or $63,918.76 more than for the corresponding kept them out of the market for outside paper. period of last year. While the January disbursements eased money The Boston & Maine R. R. reports net operatto some extent, banks are still charging prac- ing income, after taxes, for November, 1917, as tically 6 per cent for demand and time money $752,459 as compared with $1,079,945 for the and are restricting commitments as far as corresponding month of 1916. The N.- Y. N, possible. Bankers acceptances, 90 days, 4J EL & EL Ro R. reports operating income, after per cent. Town notes, 6 months, 5i per cent. taxes, for November, 1917, as $1,469,202 as The boot and shoe industry continues quiet compared with $2,077,456 for the same month outside of Government orders? and retail trade the previous year. is confined to a considerable extent to over- Loans and discounts of the Boston Clearing shoes, etc., needed for the inclement weather House banks on January "19, 1918, amounted e Early last week before the closing order to $482,062,000, as compared with $485,833,000 there was a better demand for cotton goods last month and $449,2~17,000 on January 20, than for some weeks. The inquiries for the 1917. Demand deposits on January 19, 1918, most part were for early deliveries starting amounted to $403,700,000 as compared with this side of April. There was a moderate $411,627,000 on December 15, 1917, and amount of business in print cloth with prices $366,139,000 on January 20, 1917. Time firm, deposits on January 19, 1918, totaled The wool market is much quieter, although $22,254,000, as compared with $23,743 on prices remain firm. There is very little December 15, 1917, and $32,185,000 on Jantrading between dealers, and it is still too uary 20 1917. The amount "Due to banks" ? early to judge what effect the Government on January 19, 1918, was $130,745,000, as order requiring wool importations to be offered compared with $121,753,000 on December to the United States has made on the general 15, 1917. situation. This is especially true when it is While the volume of business of industries in remembered that this country produces only this district is very large, the scarcity of coal, one-third to one-half of the wool consumed the railroad situation, the high cost of produeand that it is absolutely dependent upon tion, and the condition of the money market Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FEBEUABY 1,1918. FEDERAL BESEBVE BULLETIN. 113 are making it increasingly difficult to conduct The drug, dye, and chemical industries report business. heavy demand, but have been much hampered New England is beginning to realize more by difficulty in obtaining supplies, lack of fuel, and more that it must get into a position to and difficulties of delivery; also by the exmeet the continually increasing burden placed treme cold weather, as many of their products upon this section through war conditions; that are liable to damage by freezing. it must perfect and organize its business so as Paper mills report softening prices. Conto get the benefit of war orders, and to be pre- ditions have been favorable for lumber and pared to meet subscriptions to future Liberty pulp-wood operations, and a larger quantity has Loans. been delivered to the streams than is usual at this season of the year. Sugar refineries are DISTRICT NO. 2—NEW YORK. During the past month business and industry still short of raw sugar. Automobile manuin this district have been seriously hampered facturers are very busy on Government orders, by congestion of rail transportation and short- though the recent auto show in New York age of fuel. This has been intensified by ex- City stimulated other sales materially. Shoe tremely cold weather interfering with move- sales are light. Jewelry sales have decreased ment of barges in New York Harbor and de- somewhat, and the demand has turned from livery of coal from railroad terminals to New high-priced to medium and low-priced articles. York City, where the coal shortage has been Sales of watches have been extremely heavy, acute. Coal users of practically all classes have and have depleted stocks. lacked fuel and experienced serious inconven- Favorable conditions are reported in the tea ience, and many ships have been held in harbor and coffee trades. Manufacturers and dealers because of lack of bunker coal, thus reducing in men's clothing report fair sales and orders exports below those for the previous month. being placed with wholesalers for the fall of Production has been much interfered with by 1918, several months in advance of the usual these conditions, many factories having been time. The dry-goods trade also reports a fair closed for days or even weeks at a time, and demand in spite of high prices. among the plants thus affected have been many Activity is at the highest level in the textile which manufacture products essential for war manufacturing trades, with business the heavipurposes. The output of the hydroelectric est in their history both as to value and quanplants at Niagara Falls has been redistributed tity. Manufacturers of hosiery, underwear, among the several industries using the current, and knit goods are running factories full time. and priority given to plants manufacturing Cutlery manufacturers are rushed. Manumunitions or filling orders for the Government. facturers of machinery are producing so heavily In the steel industry reduced production is re- for Government use that the necessity for curported, aggravated by inability to forward tailment of sales to general trade is not impromptly finished steel products. The general probable, and throughout the industries workdemand for steel products is reported light, and ing on war materials there is as high a degree it is doubtful if increased demand could be of activity as fuel and transportation facilities cared for, as the Government's direct and in- permit. direct requirements are utilizing almost the Retail business in most parts of the district entire capacity of the mills. Steel car manu- is reported quiet, A larger proportion of purfacturers have only moderate orders on hand. chases than usual are on a cash basis and efforts Building trades continue quiet and the demand at economy are general. for building materials is lighter than for many Collections are good in practically all lines years. from which reports have been received. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

11.4 .FEDERAL RESERVE BULLETIN. FEBRUARY 1,1018. After a year of almost continuous decline, and more attention, more of the productive stock and bond prices took an upward turn capacity of the district, and are giving constant following the announcement of the President employment to labor at high wages. Labor on December 11 that the Government would conditions are unsatisfactory. Much comtake control of the railroads and that Congress plaint is made about the constant shifting of would be urged to guarantee the earnings of workers and the loss incident to their continual the roads upon the basis of their average earn- reemployment. ings for the last three years. The upward The building trade, with the exception of movement has continued through the first Government work, is very inactive. This is weeks of January. largely due to the inability to secure materials Call-money rates were firm at about 6 per and labor, and also to the fact that there is but cent during the last weeks of December, eased slight extension of industrial plants. Building materially around the first of the year, ruling permits for 12 towns in this district, including at 4 per cent or lower up to January 14, and Philadelphia, for December, 1917, amounted to have since displayed a firmer tendency, rising $915,000 as compared with $6,157,000 in to an average of around 6 per cent. Rates for December last year. There is a great need in a commercial paper, bankers' acceptances, and number of these cities for houses to accommotime money have shown slight fluctuations, date laborers who have recently been drawn and on January 21 were as follows: Commercial there. This is particularly true of this city, paper, 5J per cent to 5| per cent; bankers' ac- because of the large shipbuilding operations ceptances, 3| per cent to 4 per cent; time which are in progress in and near it, and there money, 6 per cent. Recent issues of notes run- is in contemplation the erection of between ning from one to two years by corporations of 7,000 and 8,000 houses to accommodate workthe highest standing have been placed at rates men. above those quoted for commercial paper and Notwithstanding the dullness in the building for time loans. trade, the demand for hardware products has been good. The Government has been taking DISTRICT NO. 3—PHILADELPHIA. about 70 per cent of the goods in this line and The shutting down of industry throughout the prospects are that it will absorb a still the district for several days this month, for the greater percentage of them. Prices are high. purpose of relieving the freight congestion and Collections are reported not good or in keeping expediting the distribution of coal, has dis- with the otherwise favorable condition of the turbed general business here, the full effects of trade. which have not yet been ascertained. The in- The demand for chemicals and drugs has dustrial loss resulting from this shutdown, been very active because of the urgent demands however, is expected to be more than offset by of both the Government and civilian users. the benefit the district will experience through The lack of shipping facilities has been felt the improvement of the railroad situation. to a great extent and has cut down trade, and While the production of iron and steel for in addition it has necessitated the carrying of some time has been curtailed by the scarcity of very large stocks by jobbers and retailers. coal, the general coal situation has been acute Crude drugs are high in price and show indicaonly for the past few weeks. During that time tions of going still higher, whereas the prices it has caused much suffering and possibly large of chemicals show a declining tendency. Colfinancial losses. Until the coal situation be- lections are good. This industry in general has came serious there had been no unusual de- benefited very considerably by the elimination velopments in the general business condition. of German competition as a result of the war. All branches of business directly connected The demand for all kinds of groceries is very with the war are continually absorbing more good, but more especially for the staples, such Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FEBRUARY I, 1918. FEDEEAL RESERVE BULLETIN. 115 as flour, salt and sugar, of all of which there is Financial indicators. such a scarcity at this time. The supply of sugar is gradually increasing "but the people Percentage increase or decrease comhave in some cases been using molasses and pared with.— \ Jan. 17,1918. sirups as substitutes. Canned goods are on hand in fairly large quantity. Prices have P m re o v n i t o h u . s y L e a a s r t . remained fairly steady for the last two or three weeks. There seems to be some difference of Philadelphia banks: I Loans....... ....l$585.073,000 -0.5 + 9 opinion as to whether or not it would be wise Deposits i 643;338,000 + 0.5 — 4 Federal reserve bank: j to have further price regulation of food, or con- Discounts and collateral loans... 30,863,400 -11 +400 Cash reserve, per cent....... 71 +22 ~ 9 tinue the present plan of selling goods at the 90-day discount rate, per cent | Ah, 4 h Commercial paper, per cent...... — 5| 5* usual profit above cost, irrespective of what the goods can be sold for in the market.. Dec, 1917. I S E1 Last The Government orders for knitted under- year. wear for 1918 seem to have been taken care of. ! Bank clearings: In the hosiery and. underwear lines, factories In Philadelphia...... $1,549,512,824 + 1 +11 Elsewhere in district. 102,350,996 + 1 are running at approximately 75 per cent of Total........ 1,651,863,820 + 1 +11 capacity, the output being affected by a short- Port of Philadelphia: Exports 40,158,000 +24 +60 age of labor and needles. Considerable diffi- Imports 4,446,000 + 8 -34 Building permits in Philadelphia.... 740,020 -57 -87 culty is being experienced in securing sufficient Post-office receipts in Philadelphia.. 1,160,298 " +20 Commercial failures in district (per supplies of yarn, Manufacturers are shorten- Bradstreet's) - 163! 1 60 ing their credit terms to the jobbers and the i Actual. latter, in turn,, to the retailers. The demand is good, stocks are low, and prices are con- DISTRICT NO. 4—CLEVELAND. stantly advancing. Collections are quite "good. Business at last realizes that it is face to face The Government regulations applying to im- with actual war conditions, and presents great ported wools have had a quieting effect on the expansion in some directions and very severe market, and some merchants have canceled contraction in others—an increase in the manutheir foreign orders. The demand for wool is facture of war goods and goods necessary to so great, however, that it is considered doubtful carry on. the war,- and a corresponding decrease if the,regulations will have any great effect in in the manufacture of goods unnecessary to the lowering prices. successful prosecution of the war. The last installment of the second Liberty Agriculture.—The extremely cold weather loan was paid January 15. It is interesting to and heavy snows have caused the feeding of note that only $26,000,000 remained unpaid on and caring for live stock to take the attention that date, the payment of $86,000,000 of the of farmers, to the exclusion and delay of prepaamount that could have been then payable ration for the spring crops. It is reported that having been anticipated. thousands of hogs, ready for market, are being "This bank's loans and discounts made during fed at a loss because cars can not be secured to December amounted to $45,025,000, as com- ship them to market. Traction cars and motor pared with $31,478,000 in November and trucks are being used in a limited way for this $1,150,000 in December of 1916. The earnings purpose. have increased rapidly and in December they The weather has precluded husking, and were at the rate of 30.2 per cent on the capital there is an unusually large amount of corn in stock. the field. Tests of the 1917 crop show a very The money market has been rather quiet, but low percentage of germination, and it is thought firm. Call money is quoted at 6 per cent and that seed corn will be very scarce and high choice commercial paper at 5| to 6 per cent. priced. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

116 FEDEEAL BESEBVE BULLETIN. FEBEUAET 1,1918. Manufacturing.—Government demands and the largest business, excluding war materials, regulations which cut in many different di- in its history, with collections disappointing rections, the weather, coal shortage, and trans- and notes offered at maturing dates. As a portation difficulties, all tend to obscure the general proposition, credits are closely watched. real situation. A shortage of coke has com- Transportation.—The unusual weather, stoppelled the, banking of a large number of fur- ping navigation on the rivers and tying up cars naces, and consequently has heavily reduced on sidings and in yards, has seriously and conthe production of pig iron. Some manufactur- tinuously added to the difficulties of the situers who ordinarily furnish their own supply of ation. Congestion was so severe in some lopig iron through their own organization are calities in the district that there was practically compelled to buy from outsiders. This in its no freight movement for twenty-four hours at a turn has affected the steel business and its time, and passenger and street car service was manufactured products. However, it is thought greatly delayed. There is a hopeful feeling that, with a clean-up by the railroads, steel that, as a result of the "closing order," tomanufacturing will be resumed on a scale that gether with milder weather, the worst has been will more than take care of Government needs experienced and gradual improvement may be and will revive commercial demands. expected. The frozen condition of the rivers and the Labor.—A slowing up in the manufacture of lack of cars have seriously interfered with the strictly " peace" goods, together with shutcoal trade. Apparently the mines are in a downs in plants occasioned by transportation position to furnish more coal, and, with normal difficulties, fuel shortage, etc., has somewhat weather and a means of marketing their prod- eased the demand for laborers in some localiuct, they should do a much increased business. ties, and in many instances men are reported The clay and brick industries, except in idle. In some cases the situation is acute to isolated cases, report decreased output due to the extent of paying idle men in order to hold delay in receiving materials and in delivery of them for future requirements. Undoubtedly their products. with the clearing of freight congestion both Owing to natural gas shortage, a number of men and women workers will be in brisk deglass factories are practically idle and some mand, especially in munition centers. are said to be closed for the winter. In several Building operations.—Building activities have been greatly reduced, due to scarcity and cases, on account of fuel conditions, gas prohigh prices of labor and materials and lack of ducers have been installed. The window-glass mortgage money. Where an increase is shown manufacturers are adversely affected by the over 1916 in the value of buildings being cessation of building operations. erected, this is due almost wholly to the erec- Mercantile lines.—Jobbers of merchandise tion of manufacturing plants. Therefore, resupplying the country trade as a rule report ports show that the building business is very business good. The outlook is satisfactory, dull, and some manufacturers of products, such and an active spring trade is predicted. In the as plumbing materials, etc., are remodeling retail trade there has been some lessening in their shops to enable them to accept orders activity, caused by weather conditions. Howfrom other sources. ever, seasonable articles are in brisk demand, Money.—The demand for money continues and, despite the appeal to save, there is a brisk, and rates are firm. Outside the large distinct tendency to extravagance. centers some idle funds are reported, but not in Collections. Except in very few instances, as large amounts as usual at this time of year. collections are reported remarkably good. In Generally, the situation is one of preparation one particular case, however, one of the large for the future. Only legitimate immediate manufacturers of its line and a very large proneeds are considered, and funds for these appear ducer of war goods reports for the past month to be ample. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FEBRUARY 1,1918. FEDERAL RESERVE BULLETIN. 117 DISTRICT NO. 5—RICHMOND. on the volume of business. Little effort There has been probably less slowing down is being made to procure new business, as all of business in this district than is usual at this producers and manufacturers are finding ready time of the year. demand for all products at high prices. The risk of operating at the present high, cost The coal deposits in this district are among of materials and labor is another factor which the most extensive, valuable, and important is holding in check efforts for the expansion in the country. Three of our greatest trunk of trade. line coal roads derive a large portion of their Weather conditions have been a notable revenue from the hauling of coal from these factor in all activities for the past month. properties to harbors on the coast, particularly In Richmond, Va., since December 11, there to Norfolk and Newport News. Other railroad have been 14 snowfalls, aggregating a depth lines assist in the general distribution of this of over 2\ feet. This is a fair indication fuel to the hundreds of manufacturing plants of conditions prevailing in the northern States throughout the district. The chief difficulty of the district. There have been considerable of providing fuel has been lack of transportasnowfalls as far south as South Carolina. tion. There has naturally been little agricultural In West Virginia, 30,000 miners are reported activity in the district. While severe weather to be idle, large glass plants being shut down has done some damage, in the northern porfor lack of fuel, and many of the men are seektion of the district it has protected wheat to" a ing other employment. The contractors for considerable extent. In South Carolina a the United States powder plant at Crawford considerable portion of the oat and wheat City are reported to be employing many of crops have been destroyed, necessitating rethese men at 35 cents per hour. If transportaplanting. Reports from the valley of Virginia tion at the coal mines is provided, it is estiindicate that a considerable proportion of mated that the output of coal could be inthe old wheat crop is still being held. Chesacreased from 25 per cent to 50 per cent over peake Bay and other inland waters have been the present volume. frozen, causing serious delays in shipping and Business conditions in some few lines have extensive damage to the oyster industry. been adversely affected, but this is due to special conditions and is rather sporadic. The most important question in the district, Business activity generally continues un- and one which is already engaging widespread abated. The situation may be generally attention and consideration, is that of the summarized in the words of one report, which planting and raising of this year's crops, says: "Demand for goods is unprecedented, Farmers are reported "never so rich.7' The brought about in a great degree by the pros- demand for plows is unprecedented, but this perity of the farmer and the high wages of the is also said to be true of automobiles. laboring man. When a laboring man gets $2 Profitable returns from farming are ima day, he spends it, and when he gets $5 a day, proving farm labor conditions. A record he spends it. To-day, the man who buys volume of fertilizers is in demand and at high tenderloin beefsteak is the laboring man, and figures, which will represent an enormous the man who is economizing is the millionaire.7' increase in crop expenses. The incentives Army and Navy requirements are creating of 30-cent cotton and 30-cent tobacco are a a scarcity in many lines of merchandise. temptation to plant these crops to the limit. Collections are good. Scarcity of essential Any considerable reaction in the price of these factors, raw materials, transportation, and the commodities, which must be raised this year fuel and labor necessary to convert them into on the high-cost basis referred to, might bring finished products are the chief restraints a serious reaction in farming conditions. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

118 EEDEEAL EESEBVE BULLETIN. FEBRUARY 1,1918. The shipment of cotton has been seriously since December 20, and have been reflected in delayed at the ports due to lack of shipping the loans of the Federal Reserve Bank, which facilities,1!and if the present crusade for the have for the first time reached the aggregate of relief of fuel conditions also relieves this $50,000,000. embargo, it will materially improve conditions The mills of the district are reported in fine in this direction. Considerable cotton is still shape and making money, and "the general held in warehouses in the interior, quite a outlook to us for manufacturers, farmers, and little of it apparently still for account of bankers is bright, though industries requiring farmers. the movement of considerable tonnage over the Farm mortgages to a considerable amount railroads are fearful of the conditions that may are reported to have been paid off. Consider- exist within the next 60 or 90 days/7 To this able land has changed hands in the past few may be added by way of caution the vital months at high prices, creating a new volume question of the cost of pitching this year's of obligations. Prosperity has improved credit crops, referred to above. conditions, and many farmers who have been DISTRICT NO. 6—ATLANTA. dependent on merchants for crop supplies Due to the war necessities and regulations obtained, however, at high prices, are seeking the sudden readjustments in business have bank accommodations to enable them to pur- been such during the past month as to curtail chase supplies, particularly fertilizers, for cash. manufacture in some of the essential lines. A saving of $10, or even $15, per ton can be While there is a feeling of confidence as to the made in this way, but high prices have added to ultimate outcome of the war, demands for the volume of required bank accommodation, subscription to Liberty bonds, war-savings and the demand in this direction is likely to be stamps and certificates, and the continued heavy. These requirements demand close demand for contributions for other movements scrutiny. in connection with the war has forced a spirit Eailroad returns under present conditions of general economy among the people, proform a very uncertain criterion, which is also ducing a clearer vision of war's necessities and the case with regard to post-office receipts. demands. The latter show a largely increased volume, the The district experienced the coldest weather major portion of which, however, is due to in 20 years, prevailing almost entirely throughincreased rates. out the month, considerably retarding business Private building is almost at a standstill, and adding further handicap to all transportavery little work being done except for the tion. Indications are that there will be a Government, and this has hardly made up the general decrease of acreage of all early truck deficit in ordinary home building. crops in Florida. While there was some fear Road building is receiving increased atten- for the small grain crops, the cold weather tion in the district generally, and particularly does not appear to have done any considerable in Virginia. The State legislature is consider- damage; in fact the heavy snows appear to be a ing the launching of a well-matured plan for benefit to the wheat and make the prospects State highways, with feeders to be provided by for a good crop favorable. Live stock does the counties and local committees. The parcel- no.t appear to have suffered to any extent. post automobile routes contemplated by the The coal situation was the most important post-office authorities have been a matter of feature in January activities. The increased keen interest. Bank deposits are reported activities over previous years, coupled with a larger than ever, but profits have not been pro- shortage of coal, the lack of railroad facilities, portionate to the volume of business. The and unheard-of cold weather created an extraorrecent calls and cash payments on account of dinary demand for coal, the need of which Government financing aggregated $37,000,000 has been sorely felt by many people. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FEBRUARY 1,1918. FEDEKAL RESERVE BULLETIN. 119 Railroad conditions have grown worse from postal receipts throughout the district also day to da}^, and it is hoped that with Govern- showed a large increase, some of which, of ment control some relief will be found. The course, is due to increase in population and opinion prevails in this section that the blocked large Army camps and to the high rates of conditions of the railroads are largely due to postage. The campaign of the sale of wartheir endeavoring to haul too much tonage savings stamps and certificates is progressing per train, resulting in constant break-downs, nicely throughout the district. Good reports delays and the necessity of a great deal of are being received from the various headquarrolling stock in the repair shops. The laws ters, and it is expected that the sales will come relative to a limitation of 16 hours with up to expectations. corresponding rest also add to present difficul- Labor continues scarce, with increased wages. ties. It is often necessary that trains be side- Most of the cotton has been marketed, the tracked to wait either the arrival of a new extraordinary prices bringing out the major crew, or until the original crew has had their portion of the staple held. With continued allotted time for rest. high prices for cotton a large crop is looked The total production of cotton, corn, and for in 1918, notwithstanding increased diversipotatoes in the States within this district fication. during 1917 was estimated by the Department The district enjoyed an unusual holiday of Agriculture as follows: trade. While prices were high, the general public seemed to raise no objection. Regard- Cotton, 1917. Corn, 1917. Potatoes,1917. less of the war, buyers asked for commodities as usual. Naturally the volume of business was Bales. Bushels. Bushels. greater than in past years, as in many cases Georgia 1,820,000 72,000,000 1,596,000 Florida 40,000 13,875,000 2,275,000 prices were double on certain wares. Aside Tennessee 206.000 42,246,000 1,600,000 Alabama 505,000 111,150,000 4,888,000 from the increased prices, however, there was a Mississippi 895,000 77,200,000 2,952,000 Louisiana 615,000 84,050,000 1,092,000 substantial increase in sales. There has been a growing scarcity of flour, Cotton, 1916. Corn, 1916. Potatoes,1916. and the wheat supply on hand is reported as Bales. Bushels. Bushels. getting low. Some of the mills are reported 1,829,039 62,000,000 900,000 Florida 41,449 12,300,000 1,332,000 as shut down on account of shortage of wheat; Tennessee 382,422 44,814,000 1,625,000 Alabama 533,402 78,000,000 2,952,000 other mills are running about half time. The Mississippi 811,794 47,812,000 1,800,000 Louisiana 443,182 47,600,000 780,000 mills are becoming adjusted to the new milling regulations, which require the making of a Tobacco trade in the Tennessee district has barrel of flour out of 4 bushels and 24 pounds been rather quiet, due to the holidays and bad of wheat. weather conditions, preventing delivery by With production in all lines more and more farmers. The export tobacco stored in ware- confined to war's necessities, with the Governhouses is owned largely by the representatives ment's demands for raw materials of all kinds, of the British and Italian Governments, and principally lumber, builders and real estate no shipments of importance have been made dealers see nothing strange in the fact that recently on account of shortage of car and building operations fall off. ocean steamship space. The general business outlook in the section The year 1917 showed an increase in bank is only fair, due to unsettled conditions; but clearings at New Orleans of $582,850,716 on business is growing used to the rapid readjustthe year 1916; Chattanooga an increase of ments, and there is no reason for fear any ob- $54,031,407; Atlanta an increase of $681,496,- struction unless overtaken by some unforeseen 996; Birmingham a gain of $39,880,110. The disaster. The demand for coal, iron, and lum- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

120 FEDEKAL liESEKVE BULLETIN. FEBRUARY 1, 1918. ber is still greatly in excess of the supply. Quiet reigns in the investment market, the Great activity continues at the various ship- chief subject of interest being prospective building plants on the coast and Gulf Government financing. One authority believes there is a great deal of investment money DISTRICT NO. 7—CHICAGO. awaiting higher rates for miscellaneous securi- It is gradually becoming possible to discern ties, which, it is thought, will advance proa distinct line of demarkation between indus- portionately should there be an increase in the tries that are essential and those that are not rate of Liberty bonds. There is a consistent, essential, This district, like the whole country, though small, demand for municipal securities. is on a war basis. Conservation orders, fixa- Short-time obligations of public utilities and tion of maximum prices, and most recently large industrials appear to have a ready sale. the fuel order of Administrator Garfield, bring Bank deposits are high throughout the dispersonally to every man and woman a vivid trict. Rates hold firm and no softening is realization that this war is a serious business, anticipated. While banks are in comfortable requiring the coordination of all resources and position, there is some discrimination between the cooperation of every citizen. This is re- one borrower and another, the legitimate flected in the diminishing volume of business borrower finding no difficulty in securing acin luxuries. commodation, however. Heavy snowfall in this district completely A heavy snow blanket provides protection paralyzed transportation for practically two for winter wheat. Some bad freezes last fall days and greatly aggravated the already serious in certain localities found the ground bare and shortage of coal at industrial centers and did damage estimated &t as high as 10 per cent. elsewhere. No improvement is reported in the corn crop, The coal situation had been a cause of which was universally soft. Snow blockade is anxiety for months. Stocks were low and seriously hampering the marketing of last year's many large consumers were able to maintain crops. only small supplies sufficient for a few days. In the agricultural implement line shortage With the complete tie-up of the railroads even of transportation, materials, and fuel is acute, these surpluses were wiped out and this district and this will render it a difficult matter to fill found itself in a coal famine. Radical steps the orders which are being received in good had to be taken and the recent edict of the fuel quantity. Considering the season, receivables administrator forbidding the use of coal for a are in good condition, no particular difficulty period of days, except by essential enterprises, being experienced in this direction. The labor should furnish a means of replenishing the de- situation is reported unsatisfactory in some pleted coal bunkers. departments of the industry. Necessary industries of the district have in In many cases automobile manufacturers general been working to capacity, meeting the have turned to Government work. This foreshortage of fuel, material, and transportation shadows a limitation of the output of pleasure with the means at hand, though not a few cars. have been compelled to close. As reported above, the scarcity of coal had There continues to be a scarcity of labor. been aggravated by the temporary collapse of Wages are the highest ever paid. The demand transportation from January 6 to 11, but the is so great in some localities that it has been heavy snowfall, in addition to preventing the found impossible to house the necessary men, moving of cars, has made the operation even of though otherwise they could be used to ad- the mines impossible. Hence, it is said, provantage. Very little wage difficulty is ex- duction will be very light for several days, and perienced. mines in Illinois and Indiana will have pro- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FEBRUARY 1,1918. FEDERAL BESEBVE BULLETIN. 121 duced less coal in January of this year than for It is expected that buying power will continue any like period for many years. strong, due to the large wages of labor. For As there has been no distillation of beverage the present, on account of weather conditions, spirits since September 8, 1917, distillers are collections will probably fall short of normal. disposing of accumulated stocks and at high Prospects for a good spring business in the prices in fair volume. The use of molasses in hardware line are reported good. There are the manufacture of commercial alcohol has expressions of satisfaction with regard to supplanted corn; hence distillers can not turn present business, and though salesmen have to this business. Such concerns are either been snowbound for the past two weeks and liquidating, which at present prices is possible shipments delayed, this is, of course, only without material loss, or are branching into temporary. Collections are good. chemical manufacture, corn products, cattle Jewelry houses succeeded in maintaining feeding, and the like. Maltsters suffer radical sales for December at the normal for the correduction in volume due to shipping restrictions responding month in the prewar years, but ran and railroad embargo. They report a number considerably behind the 1916 and 1915 figures. of inquiries for their product, which would fore- Thus far in January this retrogression has concast a satisfactory resumption of business when tinued at an increased percentage. Collections restrictions have been removed. are said to be very good. Manufacturers are Dry-goods houses report a good volume of unable to keep abreast of the demand for milisales, the preference running to necessities. tary wrist watches, but business in other direc- Seasonable weather had its usual good effect tions is not at all brisk. on buying. Speculative purchases are still a The leather industry is active where.Governfactor in volume. Collections are fair to good. ment orders have been placed, but quiet in This is the semiannual sale period for fur- civilian lines. As to all other industries, railniture manufacturers. Buyers appear in the road embargoes are the chief concern. Collecmarket as in past sales and volume is expected tions are good, labor satisfied, and the general to be close to normal. Retailers complain situation satisfactory. somewhat about holiday business. The prin- Prices in the live-stock market have eased off cipal difficulty among manufacturers has been somewhat. Railroad situation has reduced with labor and transportation. Collections are receipts at yards temporarily. Quality of reported very good. stock is good. Farmers have their farms well Conditions in the grain business are destocked with beef cattle. The number of young scribed as extremely unsatisfactory. For some hogs is reported large and it is anticipated that time receipts at terminals had been light, and supply during spring and summer will be plentiwhen the bad weather came, blockading or ful. Foreign demand, of course, continues seriously hampering car movement, grain restrong, with the usual obstructions, scarcity of ceipts were reduced 'to' a minimum. The rerail and water transportation. sult is that farmers hold enormous amounts of Lumber for building is not in demand to an grain which they are unable to market, while appreciable extent. The Government is taking different localities throughout the country are some material for use in cantonments and panel suffering. work for aeroplane manufacture. Retail busi- Wholesale grocers, looking back on the past ness is at a standstill. Few inquiries are reyear's business, report general satisfaction both ceived from railroads and car manufacturers. with tonnage and volume, and losses have been Mail-order houses report their usual increase held to the usual fractional percentage. They in volume for December, 1917, business over report that adjustments have been made in line the same period in 1916. It is expected bad with governmental restrictions. There is some weather will affect collections for a time. uncertainty as to. the future but no misgivings. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

122 FEDERAL BESERVE BULLETIN. FEBRUARY 1,1918. Piano orders are fair in number, but show a DISTRICT NO. 8—ST. LOUIS. decided drop from last year. Dealers are not The usual midwinter dullness is apparent in pessimistic, but look for favorable conditions in some lines, but on the whole business in this their line. Output has been reduced or ham- district is satisfactory and indications point to pered by scarcity of raw materials and by un- a good spring trade. Heavy snowstorms and certainty in railroad situation. Labor is still severe cold weather during January hindered in short supply. Collections are satisfactory. transportation of all kinds and caused delays No change is reported in the shipbuilding in- in the movement of goods. Tbis, together dustry, production being pushed to the limit with an acute shortage of coal, has hampered established by the scarcity of essential factors. business, but the situation has been greatly War orders are, of course, the life of the steel relieved by the closing orders of the Fuel business, though domestic consumers are be- Administrator. The increased cost of mateginning to buy more freely. Demand is ex- rials is affecting practically all industries, while pected to continue indefinitely, with an active some are suffering from their inability to get market for all products. supplies at inj price. It is estimated that about half the woolen Manufacturers of shoes and clothing conand worsted factories in the country are em- tinue especially busy, as are also producers of ployed at Government* work. This quite munitions, machinery, tools, and other war logically has tended to advance prices materi- accessories. Factories are more and more adally for civilians. Mills are offering to whole- justing themselves to the manufacture of artisalers for future sale the highest priced fabrics cles necessary for the prosecution of the war ever known, and these prices are being met, as and discarding nonessentials. For instance, purchasing power is strong due to high salaries one concern in this district which formerly and wages. The usual inventory sale is not so manufactured silk skirts is now making Army much in evidence this year, retailers being un- clothing; another that made beds now makes willing to sacrifice goods which they can only hospital furniture, and a sash and door comreplace at higher figures. Some relief for the pany is manufacturing aeroplanes. serious shortage of wool stocks is promised by The low temperature has stimulated the sale the release to this country of wool controlled by of winter supplies, especially heavy clothing, the English Government. overcoats, and underwear, and merchants re- Clearings in Chicago for the first 16 business port a good trade in this class of merchandise. days of January were $1,303,000,000, being The usual postholiday clearance sales have also $32,000,000 less than for the corresponding 16 stimulated the retail trade. However, the business days in January, 1917. Clearings practice of economy is becoming more and reported by 23 cities in the district outside of more the rule, especially among those who have Chicago amounted to $288,000,000 for the been accustomed to luxuries, and this is having first 15 days of January, 1918, as compared its effect upon trade in general. with $290,000,000 for the first 15 days of Collections are reported to be good. January, 1917. Deposits in the 12 central During January the annual fur sale was held reserve city member banks in Chicago were in St. Louis and was well attended by repre- $807,000,000 at the close of business January sentatives from all over the world. 21, 1918, and loans were $614,000,000. De- The heavy snowfalls h<tve afforded protecposits show a decrease of approximately tion to the winter wheat and prospects are $38,000,000 over last month and loans an in- favorable for a good crop. According to Govcrease of approximately $8,000,000. ernment reports for December, in the States Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FEBRUARY 1,1918. EEDEEAL KESEEVE BULLETIN. 123 of Arkansas, Illinois, Indiana, Kentucky, Mis- DISTRICT NO. 9—MINNEAPOLIS. sissippi, Missouri, and Tennessee, all or parts Business throughout the district has been of which are in this district, 10,238,000 acres feeling the effects of the usual midwinter lull were sown in winter wheat last fall, as against and has been quiet, although fair to good for 8,669,000 acres in 1916. The condition of the this season of the year. Sharp cold weather winter wheat in this district was reported to be has prevailed. The snowfall has not been 85.7 per cent, as compared with a 10-year aver- heavy, and the movement of commodities has age of 88.9 per cent. suffered more from the widespread railway In the St. Louis market the demand for live congestion than from, the usual midwinter stock during December, while somewhat better weather difficulties, than a year ago, was not as good as the Industrial concerns have been fully occuprevious month. Reports of the St. Louis pied, except that those engaged upon war con- National Stock Yards show that, in comparison tracts have had some difficulty in securing with the month of November, there have been delivery of material. Labor has been well decreases in the sales of all live stock. The employed, and labor conditions throughout the receipts of live stock also show a decrease, ex- district are satisfactory. cepting hogs and sheep, which show a slight The month has brought but little change in increase. In comparison with the year 1916 banking conditions. Rates are firm, although reports for 1917 indicate an increase in the the demand is slightly less than a month ago. receipts and sales of cattle and horses and Active efforts have been in progress throughmules, but a decrease in the receipts and sales out all the vStates in the district to solve the of hogs and sheep. seed-corn problems created by the partial crop The postal receipts for December in St. Louis, failure last year. The Government has sent Louisville, Memphis, and Little Rock all show a representative to check up the situation in substantial increases over the corresponding North Dakota as to oats and barley, and steps month last year. have been taken through the Food Administra- The inclement weather, in addition to the tion to anticipate the heavy demand for seed wheat in the spring. The Federal reserve high cost of materials, has further checked bank has been very actively at work in efforts building operations. Reports from the leading to locate such seed corn as the farmers within cities in this district indicate that during Dethe district are willing to sell, and has been cember there have been perceptible decreases listing such supplies for the purpose of making in the number of building permits issued and the information available to districts where also the estimated cost of construction, both the seed value of the corn was destroyed by in comparison with the previous month and frosts and bad weather. A considerable the corresponding month last year. amount of seed has been located in this way, The demand for money in this district conand as a result of the action of the bank in tinues good, especially in the large cities. The sending warning notices through member and rate to customers continues at from 5| per cent State banks to individual farmers, considerable to 6 per cent. activity has been stirred up, and farmers are Practically none of the banks in the large thoroughly alive to the situation and are cities are in the market for commercial paper. taking steps to provide for their individual re- However, there is a good demand for this class quirements. Excellent work is being done by of investment from the country banks, espethe State authorities in North and South cially in the southern portions of the district. Dakota, Minnesota, and Wisconsin, as the The rate has ranged from 5f to 6 per cent, the result of which a large amount of good seed former being the basic rate. has been saved. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

124 FEDERAL RESERVE BULLETIN. FEBRUARY 1,1918. The business outlook at the close of the j November. In this district for 1917, receipts month is satisfactory, and most concerns are Iof hogs at the markets were 16 per cent less looking forward to an active spring. j than for the previous year. The sheep movement to the six large mar- DISTRICT NO. 10—KANSAS CITY. kets of the district registered an increase of Iless than 1 per cent for this year over last. In Agriculture.—The total value of the 13 jthe next two months, the movement of all live principal crops for all States in whole or part | stock will be governed largely by the weather within this district, according to Government j conditions. estimates, is $1,718,454,000, a 33 and 40 per j Hog slaughterings in December by the discent increase, respectively, over the 1916 and | trict packers decreased one-half as compared 1915 valuations. • with the same month last year, which reflects The discouraging condition of wheat in Kan- jthe general condition for the past season, hogs sas and Nebraska, due to a continued drouth | having been reshipped to the country to be and an unusually cold and dry December, was jfattened rather than slaughtered. More catgreatly relieved by recent heavy snows, which •tle, however, were slaughtered by local packers promise to redeem thousands of acres of grain !than in any other previous year. Operations considered worthless. were stimulated by a strong demand for beef Colorado harvested an average sugar-beet; and the material increase of receipts. crop, which was sold at increased prices, while ! Mining.—The year 1917 broke all records of the cotton crop in Oklahoma this year showed ^production for lead and zinc ores in the Kansasa gain over the 1916 production. jMissouri-Oklahoma district. As a result of the The movement of all grains throughout the jlowering prices, the valuation of the zinc outyear and especially in the last three months put for the year decreased 5 per cent under has been affected by the car shortage, local I1916. The prices for lead advanced over the receipts and shipments for 1917 showing a jprevious year, and the output increased 42 per marked decline from 1916, although hay re- cent in value. A large increase in surplus ceipts have registered a good increase. Wheat | stocks at the end of the year is also notable. stock in elevators of this district decreased !The Miami (Okla.) district has shown a proslightly during December, while corn supplies j duction of lead and zinc for the past year gained almost 200 per cen't. I valued at $15,000,000. Even greater produc- Live stock.—There was a liberal movement | tion is predicted for this year. of short-fed cattle from Kansas, Missouri, and j The facts that a marked increase was shown Oklahoma o;i the local market. Prices ranged in the value of Wyoming's mineral output for from SI0 to -2, or about $2 higher than a year 1917 over 1916, and that New Mexico has ago. The movement of the beet-pulp-fed jdoubled its output in the past two years, are in steers from Colorado has started and will in- '•contrast with the estimated value for 1917 of crease as the season advances. Feeding op- Colorado's mining products, which decreased erations are active, and will continue strong, j one-sixth under the previous year. because of the large beet crop and the high I Both Oklahoma and Kansas report a serious prices received for cattle. For the past year! situation in a Statewide coal shortage, with cattle receipts on the markets of this district! suffering in some cases. This is attributed showed an increase of more than one-fourth iprincipally to a lack of transportation facilities. over 1916. j Oil.—Kansas has come to the front in the The average weight of hogs in December |oil industry during the past year, showing a was 212 pounds, 26 pounds heavier than a year j production one and one-half times greater than ago, and the heaviest for a year and one-half. ;the State's production for 1916. The unex- The general quality was the best in many; pected cold weather of the past month has months. Prices showed a slight increase over : Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FEBRUARY 1,1918. FEDERAL RESERVE BULLETIN. 125 caused a curtailment "of operations, and in settled, with the exception of one in the southmany cases suspension of work, not only in ern Kansas coal fields, which leaves these mines, these fields, but in aU fields of the oil States in with a daily production of about 900 tons, idle this district. in this present time of great need. Local For the first time in 10 years the production street-railway men threaten a strike in case of of oil in Oklahoma has declined, a decrease the employment of women on the cars, this being shown of 14,000,000 barrels, or 13 per being considered in the face of a reported shortcent under last year, accounted for in part by age of man labor. the difficulty in securing supplies and the With a present shortage of farm labor in almost prohibitive prices charged for them. Kansas, with men responding to the call for Now that the Government is securing data as Army and Navy service, and others answering to the supplies needed in 1918 for the oil indus- the demands of war industries, a serious probtry, this situation, which has been prevalent lem confronts that State of securing fifty or sixty for the past year, undoubtedly will be greatly thousand farm hands, which are imported every relieved. spring and summer. Western Oklahoma, also, With the production of Wyoming for 1917 reports that there are not enough men left on estimated at 10,000,000 barrels, an increase|of the farms to insure the production of full crops. one-half over the previous year, and the large Mercantile.—A favorable decrease of oneoil-shale acreage in Colorado as yet untouched, fifth in the number of commercial business both States look forward to a year which failures is reported for this district in 1917 in promises great development of petroleum comparison with 1916, and the liabilities of resources. concerns failing decreased over 40 per cent. Over 2,000,000 barrels, or 2 per cent of the The number of automobile licenses issued for crude oil in storage in the Oklahoma-Kansas 1917 by the States of this district made a new field, was withdrawn during the month of record, which shows an increase of about one- November. half over the previous year. Farm tractor sales Lumber and construction.—Building permits have increased during the past year. The for December in 10 principal cities of this dis- tractor business looks forward to a bright trict show a 30 per cent decrease from the same future owing to higher wages and labor shortmonth last year. However, the volume of age on the farms, although securing shipments permits for the past year increased 7 per cent by railroads from the manufacturers is a serious over 1916, in comparison with a 23 per cent problem. decrease in the largest cities of the United Business in general has quickly recovered States. The estimated cost of these buildings from the usual holiday dullness and collections for December as against the same month last continue good. Retail trade in clothing and year decreased one-fifth and for the year gained dry goods is stimulated by clearance sales, with 22 per cent over 1916, while the entire United better prices than ever before, and good de- States showed a decrease of 29 per cent for 1917. mand for hats, caps, boots, and shoes. Drugs Lumber business is not reported active. are reported active and the demand for gro- Retail trade has slackened due to the season, ceries and provisions normal. and wholesale interests are not pushing sales. Financial.—Deposits of national banks in The market continues firm and, since supplies this district have reached new high levels, the are limited because of a prevalent car and labor exact figures for which are not accessible at this shortage, prices hold steady on practically aU time. Total deposits in State banks, by comlines of lumber with some slight advances. parison of calls, have gained during the past Labor.—But few strikes, and those of small year in Oklahoma 85 per cent, in Colorado 42 importance, have been reported in this district per cent, in Nebraska 35 per cent, in Kansas during the past month, all of which have been 23 per cent, and in Missouri 17 per cent. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

126 FEDERAL EESEEVE BULLETIN. FEBRUARY 1,191S. Bank clearings in the 17 largest cities of this writes: "The spirit of our people is unbroken. district for December increased 47 per cent over They are l pressing the collar 'harder than ever the same month last year, and were one-half before. Every economy is being practiced, greater for the year 1917 compared with 1916. and we share their optimism that prosperity During the past month money rates have re- must soon again reward their faithful efforts." mained steady, and the demand continues The manufacturing industries of the district strong. are active and have sufficient orders in hand January business has felt the usual seasonal to run indefinitely. As in other sections, the dullness, but the outlook is brighter. Whole- fuel situation in this district has been serious sale and retail merchants have been busy since and curtailed operations in various lines. The the turn of the new year taking inventory, situation has been aggravated by the unusually closing their books on last year's business, and cold weather. arranging stocks for a new season. Retail There have been more or less exaggerated trade has been curtailed during the month on reports as to cattle losses in the range country account of extremely cold weather. Railroad during the recent blizzard. While there were, facilities have been interrupted, the condition of course, some losses, principally in sections of country roads has kept farmers away from where the range was poor on account of inthe cities and trade has been curtailed as the sufficient moisture, we do not believe as large result. There are evidences of early spring numbers of cattle have died as advance reports trade, and wholesalers and jobbers are starting indicated. It is difficult to reconcile reports their traveling salesmen. Advance reports are received. One correspondent in west Texas that orders are satisfactory, and, notwithstand- advises that losses were less than 1 per cent. ing the exceptionally high prices of merchan- Another, in the Roswell district, states that dise, dealers are well pleased with the volume the losses were at least 10 per cent. The of orders thus far received, and anticipate a outlook for spring in the cattle industry is not satisfactory spring trade. Collections in whole- encouraging, on account of poor range condisale and retail lines are good, and even better tions, and unless seasonal rains fall during the than for the same period in 1917. remainder of the winter the problems which A heavy snow and rain over a large portion stockmen have faced for several months, and of the farming section during the month have continue to bear, will be multiplied. greatly improved agricultural conditions, and This is the season of the year when banks prospects at this writing are good for 1918 of the district have the least demand upon crops. The winter wheat crop especially has them. Most of the institutions are in a strong been materially benefited. The weather was position, as reflected by the reports of condiunusually severe, and extended to the lower tion on December 31. Heavy deposits and Rio Grande district, where the freeze did much cash are noted, and reserves well maintained. damage to winter vegetable crops of that sec- Commercial paper is being sought as an investtion. It is estimated that lettuce was damaged ment of idle funds. Money is easy. The sale 50 per cent, cabbage 75 per cent, and other of war savings stamps and thrift certificates is vegetables similarly. Citrus fruit was injured well under way, and thrift societies are being but slightly. In the extreme west and north- organized in every community. People of the west sections the rainfall was not sufficient to district are responding liberally and unselfishly break the protracted drouth, and farming to the Government's financial demands. There conditions in those communities show little is also a liberal response to the various offerimprovement. It is, indeed, commendable, ings of certificates of indebtedness. Demand however, to note the optimism of the people of with banks in the cattle raising sections is the drouth-stricken sections. One of our cor- heavy. The bond market is extremely quiet. respondents, in the heart of the drouth area, While there are occasional purchases by Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FEBRUARY 1,1918. FEDERAL RESEBVE BULLETIN". 127 private investors where the offerings are being brought closer home every day. The especially attractive, brokers report that the adjustment to this condition ds still going on. market is quiet and subordinated to the Gov- DISTRICT NO. 12—SAN FRANCISCO. ernment's issues. Clearings at the principal cities of the dis- Shipbuilding on the Pacific coast is proceedtrict for December show an increase of 31 per ing upon a scale which seems vast measured by cent over December, 1916. The increase at any other standard than that of the critically the same cities for the year amounts to 33 per vital need for many ships to transport troops, cent over 1916. food, and war materials. The following details Building operatkxns are inactive, which is to give some indication of the development within be expected at this midwinter season. There 12 months of this industry at Seattle: is very little construction under way, and the industry is quiet. As a result there is a surplus 1916 1917 of skilled labor in the construction trades. Plants building steel ships 3 4 Indications are there will be considerable un- Plants building wooden ships 2 10 Number of employees 6,400 15,200 employment in the district for the next few Monthlv pav roll $600,000 §1,600,000 Steel cargo ships launched 4 23 months. The release of men from Govern- Tonnage of steel ships launched 29,600 201,000 Wooden ships launched 10 ment construction has created a surplus in Tonnage of wooden ships launched 23,950 Cargo ships in ways December 10 13 45 various lines of skilled labor, and this ha,s con- T T o o n ta n l a a g m e o in u n w t a o y f s c D on ec tr e a m ct b s er 10 m, oo7o9,, 5oo00o $155,0 2 0 3 0 2, , 4 0 5 0 0 0 tributed to the unemployment. There is a good demand for unskilled workmen and re- The volume of construction at San Francisco ports of actual shortage are numerous. The and other California yards is shown by the most serious shortage, however, seems to be following: that of farm labor, and it is predicted that when the planting season opens the shortage Numwill become more acute. ber. Tonnage. Cost. Failures in Texas for the past year reflect Steel vessels for which contracts have the general improvement in business, and the been closed 73 700,000 $105,000,000 Steel vessels for which contracts are number and amount of liabilities carried shows about to be closed 21 150,000 30,000.000 Wooden vessels for which contracts a material decrease when compared with 1916. have been closed 12 50,000 6,000, GOO The figures were as follows: 1916—Number, Total 106 900,000 141,000,000 Total steel and wood ships to be built 588; liabilities, $5,936,223. 1917—Number, by July 1,1918 300 2,000,000 300,000,000 431; liabilities, $3,380,339. Post-office receipts at the principal cities of It is estimated that United States warships the district show an increase of 41 per cent for costing over $200,000,000 are also under conthe month of December over December, 1916. struction at Pacific coast yards. The copper mines of Arizona, are operating For the year ending October 31, 1917, the at full capacity, and the industry is quite imports of Seattle were $262,000,000 and exprosperous at the present time. ports $182,000,000, compared with $156,000,- The discovery of oil in the Brownwood sec- 000 and $188,000,000, respectively, for 1916. tion has made business active there, and offset Imports and exports at San Francisco for the to an extent the poor returns from crops, as a, same period were $202,000,000 and $143,000,result of the drought. 000, respectively, as against $115,000,000 and While ifc is too early in the year to make $109,000,000 in 1916. predictions as to business for 1918, it is gratify- It is stated that as many passenger steamers ing to report that prospects at the present time from trans-Pacific ports are now calling at San are excellent. The fact that we are at war is Francisco as at any time in its history. Change Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

128 FEDERAL RESERVE BULLETIN. FEBRUARY 1,19ia in trade routes due to war conditions is bring- last summer, the navel-orange crop of southern ing to Pacific coast ports thousands of travelers California will be exceptionally light, some secfor business or pleasure who would normally tions reporting not more than 15 per cent of travel by other routes. normal. The following are final estimates of grain pro- The live-stock situation, which a month ago duction in the seven States of this district: was very unfavorable because of drought and scarcity of feed, has been relieved by widespread rains. Precipitation throughout the 1917 1916 1915 district, however, still averages far below the Bushels. Bushels. Bushels. seasonal normal. The deficiency of snow in Wheat 70,899,000 87,508,000 108,192,000 Oats... 43,037,000 56,850,000 58,136,000 the mountains threatens inadequate supply of Barley, 57,664,000 55,770,000 62,435,000 water for irrigation next summer. In southern Of these totals Washington, Idaho, and Ore- Idaho feed is reported as abundant, hay selling gon produced approximately 80 per cent of the at $9 to $10 per ton, especially because of a wheat, divided, Washington about 40 per cent, winter remarkably open thus far. In some Idaho and Oregon each about 20 per cent; the sections herds have been considerably reduced same three States, about 80 per cent of the by sales because of scarcity and high prices of oats, in nearly equal proportions; and Cali- feed. fornia about two-thirds of the barley. Labor is unsettled. Strikes and threatened The crop of commercial apples of the State strikes have usually resulted in so-called comof Washington for 1917, amounting to 19,815 promises, under which there have been subcarloads, was the largest of any State in the stantial concessions of laborers' demands. Union and compares with the 1916 total of There are of course many patriotic workmen, approximately 16,000 carloads. In spite of but the distressing fact is rather generally scarcity of boxes, shortage of labor, and limited reported that there is very unpatriotic lack of shipping facilities, storage facilities were such output per unit, many of those dominating the as to minimize the losses. Shipments of other attitude of the workmen appearing to view the fruits were: Peaches, 2,112 carloads; cherries, situation as one in which they may properly plums, prunes, 1,465 carloads; and other small seek their supposed advantage by rendering fruits, 965 carloads. least service while receiving highest return. A The Government report places the apple clearer vision would drive home the conviction crop of Oregon at 650,000 barrels; of Idaho, that quite regardless of wage contentions or 567,000 barrels; and of California, 1,125,000 whether wages are high or low, their real adbarrels. Utah reports good crops compared vantage lies in greatest output, as that contriwith a total failure a year ago, butes most to winning the war and thus to the California production of fresh fruits during safeguarding of their own freedom. 1917 was valued at $40,000,000; citrus fruits, During 1917 Arizona, the leading copper $45,000,000; dried fruits and raisins, $35,000,- State, produced an estimated total of 687,000,- 000; prunes, $10,000,000; canned fruits and 000 pounds, some 7,000,000 pounds less than in vegetables, $30,000,000; olives and olive oil, 1916. Smelting was hampered by labor trou- $5,000,000; nuts, $8,000,000. bles. Utah produced 245,000,000 pounds, in- California produced twice as many beans in crease 13,000,000; Nevada 110,000,000, in- 1917 as in any previous year, the crop of crease 9,200,000; California 45,000,000, and 4,500,000 centals, valued at $45,000,000, being Alaska 86,000,000. The total production at estimated as one-third the total of the entire the average monthly quotation of 27.2 cents country. per pound would have a value of $319,500,000. The citrus crop for the season 1917-18 will be The production of petroleum in California very light. Due to a few days of unusual heat during 1917 amounted to 97,267,852 barrels, an Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FEBRUARY 1,1918. FEDERAL RESERVE BULLETIN. 129 increase of 5,445,470 barrels over 1916. Con- Num- Capital and sumption however exceeded this by 11,585,725 ber. surplus. Resources. barrels, stored stocks declining from 44,036,190 barrels on December 31, 1916, to 32,450,465 on I C d a a l h if o ornia... $8 8 6 3 2 , , 7 5 5 0 0 0 $4,5 8 8 2 8 8 , , 0 0 0 0 0 0 December 31, 1917. Oregon.. „ 2,295,000 23,562,000 Washington 3,590,000 38,373,000 California led all other States in gold production with 1,006,969 ounces in 1917 and Utah The total resources of State banks in the in silver with 14,315,300 ounces. States mentioned are reported as follows: Retail sales are reported large, even in nonessentials and luxuries. Conditions in this dis- California $993,201,000 trict perhaps do not lend themselves readily to Idaho 51,026,000 Oregon... 86,109,000 restriction of consumption to essentials. Trade Washington 138,374,000 and industry are profitable, employment is plentiful, wages are high. A mild climate The State banks have thus made a start, but throughout most of the district conduces much if they generally gave serious consideration to to pleasure seeking. It is far from the scene of their own possible fate if the strength of the war and the preparations for war are little in Federal Reserve system should prove inadeevidence. Many are helping, but there seems quate to financial strains of the character which no widespread conviction of the fact that every may grow out of war necessities, a struggle for avoidable consumption of materials necessary self-protection would bring their applications for war, wool, cotton, gasoline, etc., or of that for membership in an avalanche, even though which represents labor is a handicap to this patriotism did not move them and even though country and a help to Germany. their possible transactions with the Federal In 17 principal cities of the district bank Reserve Bank might be very limited. clearings in 1917 were 34 per cent greater than In Idaho the bank commissioner in issuing in 1916. Building permits in December were charters to new banks seeks to have them be- 22 per cent less-than in December, 1916, come from the outset members of the Federal State banks are showing an increasing dis- Reserve system. position to join the Federal Reserve system. The twelfth Federal reserve district is pro- The following State banks have become mem- ducing largely and selling its products, includbers. ing laborj at high prices. It is prosperous. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

130 FEDEEAL RESERVE BULLETIN. FEBRUARY 1,1918. RATIO OF TOTAL RESERVES TO AGGREGATE NET DEPOSIT AND FED- ERAL RESERVE NOTE LIABILITIES. During 1917 net deposits of the Federal Re- In the following table and accompanying serve Banks increased from 651.2 to 1,458.0 diagram are shown the weekly changes during millions, as the result of transfer of reserves 1917 in net deposits, Federal Reserve notes and the increase of members' deposit credits in in actual circulation, total reserves and the connection with the large discount operations ratio of the latter to the aggregate net deposit incident to the flotation of the two Liberty and Federal Reserve note liabilities. loans and the placing of the several issues of Net deposits, Federal Reserve notes in circulation, total certificates of indebtedness. Particularly large reserves, and ratio of total reserves to aggregate net deposit and Federal Reserve note liabilities at close of business increases of net deposits are shown about the on each Friday during the calendar year 1917. middle and the latter part of June and the end [In thousands of dollars: i. e., 000 omitted.] of October. Ratio of Circulation of Federal Reserve notes shows i Aggre- I t s o e t r a v l e r t e o a larger increase for the year than net deposits, gate net aggre- Federal deposits gate net t 9 h 7 e 3 .6 to m ta i l l li a o t n t s h t e h e e n to d t a o l f s t h h o e w y n e a ar t t e h x e c e b e e d g i i n n g n i b n y g N po et s i d ts e . - n R c o i e r t s c e e u s r l a v in - e R F e e a s d n e e d r r v a e l re T se o r t v al e. d F e e a p d n o e d s r i a t l s tion. note reserve of the year. As distinct from net deposits, liabili- note ties. liabiliwhich show the largest increase during June, ties. the growth in note circulation is more evenly Per cent. spread over the year, though the increase Jan. 5 651,252 272,873 924,125 758,242 " 82.1 during the latter half of 1917 was over three J J a a n n . . 1 1 2 9 6 6 8 7 7 0 , , 1 5 0 4 5 8 2 2 6 6 8 2 , ,9 1 6 6 7 8 9 9 5 3 5 3 , , 2 5 7 1 3 5 7 78 9 3 2 , , 8 4 2 3 2 3 8 8 3 4 . . 0 0 times larger than during the first half of the Jan. 26 680,262 259,768 940,030 808,824 85.3 Feb. 2 675,145 260,030 935,175 808,019 86.4 year. Feb. 9 656,422 278,523 934,945 788,242 84.3 Feb. 16 668,571 291,839 960,410 797,271 83.0 Cash reserves, composed mainly of gold, M Fe a b r . . 2 2 3 6 6 7 8 7 1 , , 0 3 3 3 6 6 3 3 0 1 3 4 , , 1 2 7 5 1 8 9 9 8 9 0 5 , , 2 5 0 9 7 4 8 8 1 4 8 6 , , 5 0 7 9 3 3 8 8 3 5. . 0 5 show the largest gain about the end of June, M Ma a r r . . 9 16 7 7 0 0 6 2, , 1 8 5 9 9 3 326,612 1 1 , , 0 0 4 2 2 8 , , 9 7 5 7 4 1 8 91 8 4 5 , , 1 6 0 1 2 6 8 8 7 6 . . 6 1 when large transfers of gold to the banks were M M a a r r . . 3 2 0 3 7 6 0 9 6 5 , , 9 5 0 4 5 8 3 3 5 4 7 6 , ,8 6 0 1 4 0 1 1, , 0 0 6 4 4 2 , , 5 3 1 5 5 2 9 94 2 7 2 , , 3 7 2 2 8 0 8 89 8 . . 0 5 made following the enactment on' June 21 A A p p r r . . 1 6 3 7 7 6 4 0 4 , , 2 5 8 9 2 8 3 4 7 0 6 1 , , 5 8 1 0 0 9 1 1 , , 1 1 3 4 6 6 , , 7 4 9 0 2 7 9 9 7 6 1 2 , , 0 6 0 6 6 2 8 8 4 4 . . 7 7 of the amendments to the Act, which provided, A A p p r r . . 2 2 7 0.... 7 74 4 3 3 , , 5 9 3 8 2 9 4 4 1 2 4 0 , ,5 3 0 5 9 7 1 1 , , 1 1 5 6 8 4 , , 3 0 4 4 6 1 9 9 8 7 2 5 , , 6 4 3 8 3 1 8 8 3 4 . . 8 8 among others, for a change in reserve require- i M M a a y y 4 11 8 8 0 1 8 5, , 5 8 6 9 4 0 4 4 2 3 8 8 , , 5 2 0 1 2 8 1 1 , , 2 2 5 3 3 7 , , 7 3 8 9 2 2 l 1 , , 0 0 3 3 0 5 ; , 2 7 0 5 1 9 8 8 5 3 . . 0 3 ments and the maintenance of member banks' ; M M a a y y 2 1 5 8 7 7 9 2 3 1 , , 0 1 2 7 8 2 4 4 4 5 6 4 , , 5 40 0 2 1 1 1, , 1 2 7 3 5 9 , , 5 5 7 2 4 9 1 1 , , 0 0 1 1 6 4 , , 7 2 4 6 5 3 8 8 2 4. . 9 1 reserve exclusively at the Federal Reserve J J u u n n e e S l 8 7 7 7 6 1 , , 6 9 7 4 6 6 4 48 6 1 4 , , 4 8 6 6 9 5 1 i; , 2 35 3 6 6 , , 1 8 4 1 5 1 1,0 9 5 9 1 3 , , 5 4 1 17 1 8 7 0 7 . . 4 5 Banks. For the entire year a gain in total J J u u n n e e 2 1 2 5 1 1, , 2 0 4 1 2 4 , , 2 1 1 7 0 7 4 4 9 9 9 1 , , 7 6 2 1 1 5 1 1 , , 7 5 4 0 1 5, , 7 9 9 3 2 1 1 1 , , 0 2 7 4 5 7 , , 4 6 0 9 8 8 7 7 1 1 . . 4 7 reserves from 758.2 to 1,720.8 millions is June 29 1,261,800 508,753 1,770,553 1,334,406 75.4 July 6 1,155,722 527,459 1,683,181 1,356,017 79.6 shown. July 13 1,221,027 532,508 1,753,535 1,400,916 79.9 July 20 1,273,597 534.226 1,805,823 1,430.321 79.1 From the beginning of the year to the end July 27 1,232,200 534; 015 1,766,215 1,414; 052 80.1 Aug. 3 1,194,170 540,785 1,734,955 1,421,382 81.9 of March the Federal Reserve Banks reduced Aug. 10 1,171,722 549,244 1,720,966 1,424,059 82.7 Aug. 17 1,183,088 558,782 1,741,870 1,427,489 82.0 their earning assets by about 25 per cent. Aug. 24 1,152,359 573.049 1,725,408 1,424,769 82.6 Aug. 31 1,133,926 587i 9151,721,841 1,406,108 81.7 As a result, the ratio of their reserves to com- Sept. 7 1,156.923 621,299 1,778,222 , 415,391 79.6 l A p o b b N O i f e i a u u o n n r b t t g v e h i J e c u d l i e i u m n e s t n i n t c y n e b e t r e e s 2 e e a t a r a 4 1 r i n s n . . d 5 e d c e t d h r p t B s h e e o t a e i g o s s s t r i o w p e t a r s d e d d a e r u e t a c a f i n a n e o r t l o n d l 6 m t y s t h a 3 t F o e g . t e 6 o 8 e o d e d 2 o e n . 8 d r n 1 d a a 2 e t l t c t . o 6 o h l 7 i f R e n 1 p 8 e e A . l e 9 4 s d a u r e s p p r g t v c t e e u o F e e r r s n r t c i t c 6 n d e a e 3 o o a n n n . t y n t 2 d e t , . D D D D N N N N N S S S O O O O e e e e e e e o o o o o c c c c p p p c c c c t t t v t v v v v . . . . . . . . t t t . . . . . . . . 2 1 1 5 7 2 1 2 1 3 9 2 2 1 2 2 6 2 9 8 4 1 0 6 3 4 8 1 ' | i 1 1 1 11 1 1 1 1 1 1 1 1 1 1 1 ; , , , , , , , , , , , , , , , 5 4 5 5 5 4 4 4 5 1 3 2 4 1 2 1 1 ;7 33 9 5 4 0 6 1 9 1 2 3 3 5 9 5 ,4 88 7 5 7 8 5 6 5 8 7 2 7 3 6 3 , , , ; . , 2 , , , , , , , , , , 82 2 9 5 1 5 3 3 7 3 7 3 6 8 4 9 1 5 9 1 8 4 2 1 6 9 9 2 7 2 0 8 9 2 4 4 5 4 7 2 2 5 0 3 8 6 2 6 6 1 1 1 1 1 1 1 1 1 1 1 , , , 0 , 2 , 2 , 6 8 8 8 9 9 6 7 7 7 1 1 0 5 4 2 4 1 7 7 8 3 4 0 4 7 1 5 1 6 6 7 7 5 0 2 2 1 0 0 4 9 0 5 3 , , , ; . , , , , , , , . , , , 6 4 9 2 5 2 5 5 9 2 0 5 8 8 3 5 4 8 8 3 1 1 4 8 1 1 6 9 0 8 8 0 2 8 3 7 2 0 6 5 6 2 7 2 1 5 5 6 1 | 2 2 2 2 2 2 2 2 2 2 2 1 1 1 1 2 ; , , , , , , , , , , , , , , 5 1 5 4 3 6 0 , 3 0 6 9 8 7 8 7 6 6 6 8 8 4 5 1 1 9 0 9 2 8 9 0 9 3 6 4 7 1 2 0 3 7 3 7 4 2 4 4 1 , , , , , , , , , , , , , , , , 0 3 8 9 0 4 6 4 1 9 2 7 1 0 4 5 1 0 2 5 5 9 0 0 6 6 1 7 7 9 8 9 4 4 2 0 9 5 0 5 7 1 3 7 3 8 2 9 ! ! 1 1 1 1 1 1 1 1 1 1 1 1 1 1 l i; , , , , , , . , , , , , , , , 6 7 6 7 6 6 5 6 6 4 5 4 4 4 4 5 7 0 8 2 5 9 5 3 2 2 2 9 8 5 5 9 6 0 3 0 3 8 2 6 6 0 5 5 7 6 2 6 , , , , , , , , , , , , , , , , 3 3 2 6 7 7 9 0 5 8 5 5 5 7 2 8 8 0 7 1 6 6 3 4 1 5 8 5 5 1 1 5 4 7 1 0 8 2 4 2 2 3 5 9 8 9 5 1 6 6 6 6 6 6 7 7 7 6 6 8 7 6 7 7 3 3 4 2 5 3 1 9 9 5 5 4 6 0 9 7 . . . . . . . . . . . . . . . . 2 6 7 4 9 1 2 7 0 6 8 5 9 0 6 1 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FEBRUARY 1,1918. FEDERAL RESERVE BULLETIN. 131 NET DEPOSITS & F.RNOTE LIABILITIES, TOTAL RESERVES, AND RATIO OF TOTAL RESERVES TOA66RE6ATE[NET'DEPOSITAND F.R.NOTELIABILITIES, DURIHG CALENDAR YEAR 1917. Curve /: Qtrm £> Joted Cash Reserves *. 3te so m 2900 2S0G so i ' 2800 2S0Q moo PO 2300 68 65 SfiOQ 60}£QCQ !9QQ im Pod IPOO m 1600 MO '000 WO 1200 %t ISOO //do noo wo tooo SCO 300 m. 800 ?00 700 €00- 600 m SOO 400 400 300 300 200 WO 100 100 SIZ 19 26 Z 0 16 Z23 23 31 616 & & 30 % 13 2027I I41 8I IZ1S8I ZSSI SSZ23 6 8 Z)27 3 Q !? 2f3l 7 M-3 & S fc®35 2 9 JS23'30? f4 2128 jAFWARf\mmm\ MMAARRCCH"H" rWRIL MI AMY AY1 J1U NJE 1 JULY I AU6U5T\S£Pr£M^\oaOBER\NOV£MB£R\D£CmBER\ Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

132 FEDERAL BESEBVE BULLETIN. FEBRUARY 1,1913. FEDERAL RESERVE NOTES AND GOLD In the following table and accompanying COVER HELD BY FEDERAL RESERVE diagram are shown the weekly changes in the AGENTS DURING CALENDAR YEAR 1917. amounts of notes outstanding and in circulation, also in the volume of gold cover held by During the year the total of Federal Reserve the agents against Federal Reserve notes outnotes issued by Federal Reserve agents instanding. The shaded portion between curves creased by 1,041.5 millions, while the amount 1 and 2 indicates the required amounts of paper of gold cover held by them against these notes collateral. These amounts are considerably increased by about 500.6 millions. In the less than the actual amounts pledged by the earlier part of the year until about June 8, an banks with the agents, the excess amount of increase of 212 millions in the amount of notes paper held by the latter on the last Friday of issued was accompanied by an increase of about the year being 46.8 millions. 194 millions in the amount of gold cover held against these notes. During the following two Federal Reserve notes outstanding and in circulation; also weeks notes were issued apparently against amounts of gold and required paper collateral held by Federal Reserve agents during 1917. paper, while gold in some volume was transferred to the banks in exchange for paper [In thousands of dollars; i. e., 000 omitted.] pledged with the agents. This resulted in Federal | Federal strengthening the reserve position of the banks, Reserve IReserve the law, as it then stood, permitting to count 1917. c G ov o e ld r. n o o u t t e - s in n c o i t r e c s ustanding. lation. as reserve only gold and lawful money held by the banks, but not amounts held by the agents. Jan. 5.... 281,292 300,280 272,873 On June 22, the notes issued were covered by J Ja a n n . . 1 1 2 9 . . . . . . 2 2 7 73 4 , , 1 5 4 1 1 2 292,014 2 2 6 6 8 2 , , 1 9 6 6 8 7 gold to the extent of 72.4 while the ratio of gold J F a e n b . . 2 2 6 . . . . . . . 2 2 7 7 4 3 , , 0 3 7 2 4 0 2 2 9 9 1 0 , , 6 5 9 7 3 7 2 2 5 6 9 0 , , 7 0 6 3 8 0 reserve (including gold in the redemption fund F F e e b b . . 1 9 6 .. . . . . . 2 2 8 9 8 7 , , 7 2 2 7 0 0 3 32 0 1 8 , , 4 3 5 4 3 8 2 2 7 9 8 1 , , 5 8 2 3 3 9 standing to the credit of the banks) to notes in M Fe a b r . . 2 2 3 .. .. . . . 3 3 0 1 6 7, , 5 1 8 8 1 6 3 3 3 4 1 3 , , 4 8 6 4 9 7 3 3 0 1 3 4 , . 1 2 7 5 1 8 actual circulation (i. e., amounts issued less M M a a r r . . 1 9 6 .. . . . . . 3 3 2 3 8 8 , , 4 6 3 0 3 8 3 3 5 6 5 3 , , 2 2 6 7 3 8 3 3 2 3 6 6, , 0 6 6 1 1 2 amounts of Federal Reserve notes held by the M M a a r r . . 2 3 3 0 . . . . . . 3 3 4 6 9 0 , , 5 6 1 6 9 8 3 3 7 8 2 2 , . 2 5 4 6 4 4 3 3 4 5 6 7 , , 8 7 0 6 4 5 banks and in process of redemption) was 79.8 A A p p r r . . 1 5 3 -6 .. . . . 3 4 7 1 8 0 , , 4 7 5 9 0 6 4 4 0 3 0 1 , , 6 7 9 8 8 8 3 4 7 0 6 1 , , 5 8 1 0 0 9 per cent. On August 17, the ratio of gold A A p p r r . . 2 2 7 0 . . . . . . 4 1 1 2 8 2 , , 5 9 3 0 8 5 4 44 4 6 0 , , 5 5 4 3 4 9 4 42 1 0 4 , , 5 3 0 5 9 7 cover to the amount of notes issued had risen M M a a y y 4 11... 4 4 3 3 3 8 , , 0 32 8 3 9 4 4 5 7 8 0, , 4 8 0 7 1 4 . 4 4 3 2 8 8 , > 2 5 1 0 8 2 to about 82 per cent, while the ratio of gold M M a a y y 2 1 5 8 . . . . . . 4 4 4 5 8 6 , , 3 6 1 1 1 1 4 4 8 7 8 8 , ,9 0 0 8 6 8 4 4 4 5 6 4 , , 5 4 0 0 1 2 reserve to notes in circulation had gone up to J Ju u n n e e l 8— 475,201 5 4 1 9 2 9, , 8 5 4 2 4 7 4 48 6 1 4 , , 4 8 6 6 9 5 91.7 per cent. J J u u n n e e 1 2 5 2 . . . . . . 4 39 5 0 9 , , 7 9 6 4 5 2 5 5 2 3 7 9 , , 9 9 7 7 1 6 4 49 9 9 1 , , 7 6 2 1 1 5 Subsequent changes in the relative amounts J J u u n ly e 2 6 9 .. . . . . . 4 4 0 1 2 3 , , 6 7 3 1 9 5 5 5 5 7 0 0 , , 5 7 0 2 4 5 5 5 0 2 8 7, , 5 8 4 0 9 7 of gold cover against notes issued and in circu- J J u u l l y y 1 2 3 0 . . . . . . 4 42 2 3 8 , , 8 3 8 3 9 8 5 5 8 7 3 9 , ,9 9 5 3 7 7 5 5 3 3 2 4, , 2 5 2 0 6 8 lation are due to issues in increasing volume of J A u u ly g . 2 3 7 .. . . . . . 4 4 6 3 7 4 , ,1 8 9 4 3 5 5 5 8 9 4 0 , , 4 3 6 8 4 9 5 5 4 3 0 4, , 0 7 1 8 5 5 notes against commercial paper and to some A Au u g g . . 1 1 7 0 . .. . . . 4 5 8 0 5 2 , , 4 5 6 8 7 8 6 6 1 0 3 1 , , 6 2 4 2 6 7 5 5 4 5 9 8 , , 2 7 4 8 4 2 extent also to transfers of gold by the agents A A u u g g . . 2 3 4 1 . . . . . . 4 49 8 3 8 , , 1 5 8 3 5 6 6 64 2 4 7 , , 9 3 1 0 1 7 5 5 7 8 3 7 , , 0 9 4 1 9 5 to the banks for the purpose of equalizing the S Se e p p t t . . 1 7 4 .. . . . 5 4 2 9 0 4 , ,7 4 7 7 9 0 7 6 0 8 0 0 , , 4 07 3 3 0 6 6 4 2 4 1 , , 5 29 6 9 7 banks' reserves against deposits and Federal S S e e p p t t . . 2 2 1 8 . . . . 5 5 3 5 6 8 , , 0 2 0 2 9 7 7 7 2 57 5 , , 0 3 7 9 6 7 7 6 0 7 0 0, , 2 2 4 1 6 2 Reserve notes, as figured under the amended O O c c t t . . 5 11-12 5 56 8 0 0 , , 7 H 3 I 4 7 83 9 7 7 , , 4 6 2 3 5 0 7 7 4 7 0 9 , , 9 8 1 8 6 5 act. On December 14, the ratio of gold with O O c c t t . . 2 1 6 9 . . . . . . 6 6 1 1 8 4 , , 8 6 2 9 7 2 8 9 7 0 5 3 , , 2 3 7 8 8 7 8 84 1 7 5 , , 5 2 0 1 6 0 the agents to notes issued had gone down to N N o o v v . . 9 2.... 6 6 1 0 6 2 , , 2 4 5 3 4 3 9 99 4 5 1 , , 3 2 8 8 4 4 8 9 8 3 1 2 , , 0 5 0 1 1 2 55.6 per cent, while the note reserve had de- N N o o v v . . 2 1 3 6 . . . . . 6 6 2 2 9 3 , , 9 9 0 4 6 8 [ 1 , , 0 1 3 0 8 2 , , 6 2 2 87 0 1, 9 0 7 1 2 5 , . 5 8 8 9 5 2 clined to 60.8 per cent. On the last Friday of D N e o c v . . 7 30 .. . . . . . 6 6 6 8 1 3 , , 8 9 2 3 4 9 1 [ , , 1 1 2 8 6 4 , , 3 6 4 6 5 7 1 1 , , 1 0 1 5 0 6 , , 5 9 3 8 7 3 the year the former ratio stood at 58.3 while D D e e c c . . 1 2 4 1 . . . . . . 6 74 8 6 3 , , 1 3 0 7 7 8 [ [, , 2 2 9 2 5 9 , , 0 0 6 0 9 7 1 1 , , 1 2 5 2 3 7 , , 3 6 8 4 5 2 the note reserve had risen to 64.3 per cent. Dec. 28... 781,851 [,341,752 1,246,488 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FEBRUARY 1,1918. FEDEBAL RESERVE BULLETIN. 133 s FEDERAL RESERVE NOTES OUTSTANDING AND IN CIRCULA T/ON DURING 1917, ALSO AMOUNTS OF GOLD AND REQUIRED PAPER HELD BY FR. AGENTS. 1 Curve /.• jfmounts ofOold Cover'held against JTJfcJIfotes issued* b Curve 2: Jfnwimts of S'Jt.JVotes' outstanding, (~6old Cover, jdwsffiqwr Collateral required,). 1 Carre J.- Jl'mount? ofJTJ£.J¥o£es uiJlctaal Circalattoih, (~Jfmoan£$QutstaMMfiff, less JfrnoarUs Md, btfJSanfCs and iw process ofMedemfttwn).. ISW mo i 007- ft I3W ^^ I • M^ BOO- k^^ 1200 1 • ^^ p^ ^^ ^^ 1100 - ^W ^^^^ ¥VY\ - ^$^ KW ^ ^^ ^$^^^ I^ ^ ^^ \^^ ^ ^ ^^ SQQ- ^ ^ ^^ ^^^^ 900 ^$^ • ^ ^ ^^ ^^ ^^^$$; m- ^^ SO) IIIII IIII^^ ^ ^^ ^^ A TOO 700- ^^^^^ » 1 %^ ^^^^ 600- s ^^^&^^^^ 600 u_L-|_.. y SQO- u u ii 500 IIPI^^ r f 400- p f 400 f - - 300 "11 K kV 1*"%- I- J * / k* 1 • b IJrfE •if 1 ZOO 200 m W \ r < Q u O ~\ y H WMt CM Ai 1?I i lf t V; t U U S N ? E ?29 613 L ?o Y ? ,k JO h $(£fQBER ftQ 3 V 1 E 6 M 2 B 3 E 3 R V \D F t U M1 M 21 m 2 L Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

134 'FEDERAL BESEBVE BULLETIN. FEBRUARY 1,1918. DISCOUNT OPERATIONS OF THE FEDERAL RESERVE BANKS. During the month of December discount trade acceptances, 12.9 millions as commodity operations of the Federal Reserve Banks paper, and 1,173.9 millions as customers7 paper, totaled $892,237,774, as against $3,206,486,771 including bills secured by Liberty bonds and for November and $2,681,165,854 for October certificates of indebtednessof the present year. As is seen from a com- Over 90 per cent of the year7s discounts is parison of these figures, the pressure upon the represented by 15-day paper (i. e., maturing Federal Reserve Banks7 liquid resources, caused within 15 days from date of discount with the by member banks seeking accommodation for Federal Reserve Bank), this percentage running themselves and customers investing in Gov- as high as 97 per cent in the case of the New ernment war loan securities, was much less York bank. during December than for the two months On the last Friday of the year the Federal previous, though a large part of the paper dis- Reserve Banks held a total of $680,706,000 of counted by the reserve banks, as during the discounted bills, compared with $756,398,000 earlier months, was secured by Government war at the end of November. About 43 per cent loan obligations. Member banks7 collateral of the total holdings about the end of December, notes thus secured totaled 238 millions, or 26.8 as against 66 per cent the month before, was per cent of the total paper discounted with the paper directly traceable to war financing, i. e,, Federal Reserve Banks during the month as member banks7 collateral notes and customers' against 80 per cent of the much larger total paper secured by Liberty bonds and certificates reported the month before. of indebtedness. The remainder was com- Discounts of collateral notes secured by composed of $87,751,000 of member banks' colmercial paper from 412.5 millions during lateral notes secured by commercial paper, November declined to 149,3 millions during $283,737,000 of customers7 (secured and unse- December. This large decrease in the use of cured) paper n. s., $8,631,000 of agricultural, collateral notes was due apparently in part to and $7,662,000 of live-stock paper. About 72 the provision in the war revenue act of Octoper cent of the agricultural paper was held by ber 3, effective December 1, which imposes a the Chicago and Minneapolis banks, while tax of 2 cents per $100 or any fractional part about 86 per cent of the live-stock paper is thereof on promissory notes (held to include credited to the Kansas City, Dallas, and collateral notes tendered for discount to Minneapolis banks. Federal Reserve Banks)* During the month the number of member Total discounts fof the month include in banks increased from 7,846 to 7,882, largely as addition 15.4 millions of trade acceptances in the result of admission to membership of State the domestic and foreign trades, compared with banks and trust companies. The number of 6.9 millions for November, and 488.7 millions of unclassified discounts, including customers7 members accommodated through the discount paper secured by Government war loan obli- of paper during the last quarter of the year was gations, as against 201.4 millions of like paper 2,261, compared with 1,647 during the third reported the month before. quarter, and 1,185 during the second quarter of Discounts for the calendar year 1917 aggre- the year. Chicago, with 504 member banks gated 8,968.8 millions, as against 207.9 millions discounting during the fourth quarter, leads all in 1916. Of the total for the more recent year, other districts, followed by New York with 7,744.5 millions, or 86.3 per cent, were collat- 283 member banks accommodated during the eral notes, while 37.5 millions were reported as last quarter of the year. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FEBRUARY 1,1918. FEDEBAL BESEBVE BULLETIN. 135 Bills discounted during the month of December, 1917 and 1916, and the 12 months ending December, 1917 and 1916, distributed by classes. Member banks' collateral notes. Secured by Federal Reserve Bank. Lib or e r U ty n i b t o ed nds Otherwise Trade Co p m a m pe o r d . ity d A is ll c o o u th n e ts r . Total. States certifi- secured. cates of indebtedness. Boston $11,590,444 SI, 520,150 $2,687,752 $90,280,529 $106,078,875 New York 102,149,997 45,637,140 3,781,191 110,664,647 262,232,975 Philadelphia 9,485,501 1,722,250 99,001 $22,950 33,695,673 45,025,375 Cleveland 18,821,300 1,187,000 2,297,491 41,325,396 63,631,187 Kichmond 8,209,060 5,291,713 .565,101 105,465,697 119,531,571 Atlanta 4,923,850 3,281,500 1,163,800 "i,"325,"266' 13,971,786 24,666,136 Chicago* 45,769,000 59,940,560 226,361 31,078,518 137,014,439 St. Louis , 21,727,740 3,450,000 982,609 23,822,356 49,982,705 Minneapolis 2,685,622 588,522 97,243 5,068,607 8,439,994 Kansas City 6,984,350 24,730,287 627,867 9,868,497 42,211,001 Dallas 1,000,000 1,084,280 7,862 1,452,851 3,544,993 San|Francisco 5,460,943 835,000 2,888,373 266,987 20,427,220 29,878,523 Total, December, 1917 238,807,807 149,268,402 15,424,651 1,615,137 487,121,777 892,237,774 Total, December, 1916 29,892,400 1,103,000 816,700 31,903,900 63,716,000 Total, January-December, 1917 7,744,511,195 37,552,920 12,871,660 1,173,872,190 8,968,807,965 Total, January-December, 1916 38,967,447 5,212,300 16,813,200 146,877,553 207,870,500 Amounts of discounted paper, including member banks1 collateral notes, held by each Federal Reserve Bank on the last Friday in December, 1917, distributed by classes. [In thousands of dollars; i. e., 000 omitted.] Member banks1 collateral Customers' notes. paper secured by Banks. Ag p ri a c p u e lt r u . ral Li p v a e p -s e t r o . ck b L U o i n n b i d e t r s e t d y or Se b L c o u i n b r d e e s d r t o b y r y d A is ll c o o u th n e t r s. Total. St f a ic te a s t e c s e o rt f i- Sta U te n s i t c e e d rti- O s t e h c e u r r w ed is . e indebtedness. ficates of indebtedness. Boston 36,518 6,855 1,286 21,272 65,931 New York 61 58,443 79,690 37,484 79,307 254,985 Philadelphia... 188 16,467 5,368 478 17,020 Cleveland 43 7 10,931 5,262 28,358 44,601 Kichmond 515 5 5,760 4,948 18,879 30,107 Atlanta........ 305 140 35 2,468 1,417 11,895 16,260 Chicago 4,908 89 6,782 21,641 36,510 36,595 106,525 St. Louis 67 88 1,633 11,341 1,725 24,958 39,812 Minneapolis 1,269 1,171 320 883 316 9,532 13,491 Kansas City... 674 3,608 199 9,663 7,465 13,205 34,814 Dallas 218 1,802 4,802 260 775 1,016 8,873 San! Francisco.. 383 752 388 2,268 295 21,700 25,786 Total. 8,631 7,662 142,278 150,647 87,751 283,737 680,706 Percent 1.3 1.1 20.9 22.1 12.9 41.7 100.0 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

136 FEDERAL RESERVE BULLETIN. FEBRUARY 1,1918. Bills, including member banks* collateral notes, discounted by each Federal Reserve Bank during the 8 months ending December9 1917, distributed by maturities as of date of discount Number Maturities. Number of banks of mem- accomber banksmodated Total bills Districts. a D t e e c n e d m o - f q d u u a ri r n te g r Within From 16 to From 31 to From 61 to Over 90 discounted. ber. ending 15 days. 30 days. 90 days. days. Dec. 31. District No. 1—Boston: Connecticut 55 83,547,191 $2,878,597 $1,734,931 85,420,345 8121,632 813,702,696 Maine.... 63 226,822 212,727 246,164 614,048 1,487 1,301,248 Massachusetts. 163 33,964,967 18,394,646 25,946,866 66,401,458 783,073 145,491,010 New Hampshire 55 944,488 1,064,730 558,259 720,284 13,430 3,301,191 Rhode Island — 18 1,606,158 1,954,486 2,398,785 5,984,795 11,944,224 Vermont 48 862,501 1,106,831 314,043 365,169 13,731 2,662,275 Total- 402 163 41,152,127 25,612,017 31,199,048 79,506,099 933,353 178,402,644 District No. 2—New York: New York 519 222 5,162,573,498 11,377,437 36,097,004 75,908,463 5,285,956,402 New Jersey....... 136 51 11,813,991 596,659 2,466,159 3,553,489 18,430,298 Connecticut — 15 10 1,258,400 152,733 1,265,023 1,730,522 4,406,678 Total. 670 283 5,175,645,889 12,126,829 39,828,186 81,192,474 5,308,793,378 District No. 3—Philadelphia: Delaware..... 23 1 50,000 50,000 New Jersey 73 24 3,712.282 300,258 470,633 422,468 900 4,906,541 Pennsylvania 542 152 57,787,563 7,124,639 4,718,961 18,733,578 2,425 88,367,166 Total- 635 177 61,549,845 7,424,897 5,189,594 19,156,046 3,325 93,323,707 District No. 4—Cleveland: Kentucky 70 991,472 292,799 232,454 700,636 2,217,361 Ohio . 60,579,710 13,254,742 11,340,547 13,200,975 10,625 98,386,599 Pennsylvania. 301 27,011,687 5,510,082 2,053,136 1,630,070 36,204,975 West Virginia 13 525,000 150,000 1,000 5,075 20,000 701,075 Total. 764 79 89,107,869 19,207,623 13,627,137 15,536,756 30,625 137,510,010 District No. 5—Richmond: District of Columbia... 15 376,709 204,056 121,347 133,020 835,132 Maryland .. 97 21,160,115 1,269,064 1,734,053 2,294,309 10,155 26,467,696 North Carolina 81 5,965,304 566,605 925,904 1,321,449 9,864 8,789,126 South Carolina 84 4,828,562 328,378 1,184,957 1,348,724 2,600 Virginia 151 151,292,744 832,022 1,571,036 1,897,206 500 155,593,508 West Virginia 102 935,454 29,413 40,760 528,060 1,533,687 Total... 530 166 18,4558,887 3,229,538 5,578,056 7,522,769 23,120 200,912,370 1 . ::... _: — District No. 6—Atlanta: Alabama...... 95 2,559,445 672,465 722,341 926,299 4,911,539 Florida 57 2,318,194 358,039 940,307 193,104 48,772 3,858,416 Georgia 107 16,585,914 1,843,439 2,956,993 2,084,795 23,471,573 Louisiana 25 23,745,852 174,400 754,185 47,133 24,721,57a Mississippi....... X8 1,307,756 240,437 262,598 17,898 1,828,689 Tennessee 90 4,247,915 337,406 703,041 548,231 60,478 5,897,071 Total.. 392 176 50,765,076 3,626,186 6,339,465 3,817,460 140,671 64,688,858 District No. 7—Chicago: Illinois i 334 150 4,399,858 4,610,755 9,799,134 1,541,180 227,154,626 Indiana.... 200 77 11,284,440 2,728,650 5,279,394 1,881,204 21,470,951 Iowa 358 189 27,947,661 1,757,289 5,845,098 7,875,615 4,428,854 47,854,517 Michigan 99 44 51,689,363 1,103,494 2,165,665 2,417,668 102,155 57,478,345 Wisconsin 109 44 27,489,917 2,694,683 10,945,710 987,857 67,147 42,185,314 Total.. 1,100 504 325,215,080 12,683,974 28,846,622 22,961,478 6,436,599 396,143,753 District No. 8-St. Louis: Arkansas 67 5,612,229 423,138 981,875 456,610 30,296 7,504,148 Illinois 158 1,528,250 288,434 585,006 177,710 31,675 2,611,075 Indiana 63 4,032,000 147,695 392,012 294,540 4,866,247 Kentucky 68 4,282,941 561,087 1,486,536 933,094 7,263,658 Mississippi 18 59,600 19,850 97,142 125,062 6,000 307,654 Missouri 87 58,449,796 6,324,198 4,855,571 4,448,358 48,706 74,125,629 Tennessee , 20 6,700,236 1,072,649 1,687,342 2,028,509 11,488,736 Total- 479 92 80,665,052 8,837,051 10,085,484 116,677 108,168,147 District No. 9—Minneapolis: Michigan 34 85,301 30,301 114,098 64,643 294,343 Minnesota 295 22,895,550 1,274,862 3,309,507 2,534,989 572,642 30,587,550 North Dakota 162 144,651 57,501 53,772 229,415 359,804 845,143 South Dakota 127 79,527 478,948 414,991 159,760 1,633,192 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FEBRUABY 1,1918. FEDERAL RESERVE BULLETIN. 137 Bills, including member banks1 collateral notes, discounted by each Federal Reserve Bank during the $ months ending December, 1917, distributed by maturities as of date of discount—Continued. Number Maturities. Number of banks of mem- accom- Districts. b a D e t r e e b n ce d a m n o k - f s m q d o u u d a r a r i t n t e e g r d Within From 16 to From 31 to From 61 to Over 90 d T is o c ta o l u n b t i e ll d s . ber. ending 15 days. 30 days. 60 days. 90 days. days. Dec. 31. District No. 9—Minneapolis—Continued. Montana 120 45 346,861 $127,866 §233,040 §168,837 §643,011 31,219,615 Wisconsin 38 10 243,663 14;137 41,509 92,859 5,505 397,673 Total 776 225 23,915,992 1,584,194 4,230,874 3,505,734 1,740,722 34,977,516 District No. 10—Kansas City: Colorado 122 14 2,908.440 421,998 590,457 1,108,672 1,165,645 6,195,212 Kansas 233 37 4.947', 561 211,884 235,644 428,175 255,601 6,078,865 Missouri 55 17 79,386,283 381,695 505,390 4.16,027 38,936 80,728,331 Nebraska 192 61 44,850,165 1,542,214 2,396', 145 1,993,236 1,121,021 51,902,781 New Mexico. ..... ... 9 2 9,512 2,028 49.050 60,590 Oklahoma w 311 45 7,24i,539 814,254 1,483,006 1,259,215 653,167 11,451,181 Wyoming 36 4 1,342 10,000 114,255 93,421 219,018 Total 958 180 139,333,988 3,373,387 5,230,154 5,321,608 3,376,841 156,635,978 District No. 11—Dallas: Arizona. 7 1 998 8,745 14,855 82,539 107,137 12 2 225,000 94,493 319,493 New Mexico. ... 32 11 180,000 53,452 288,094 258,685 492,829 1,273,060 Oklahoma 30 4 295,000 295,000 Texas 551 88 23,081,853 449,168 1,109,337 673,391 793,892 26,107,641 Total 632 106 23,781,853 598,111 1,406,176 946,931 1,369,260 28,102,331 District No. 12—San Francisco: Alaska . 1 Arizona. 7 California 272 48 28,558,195 5.158,921 i6,43i,9i2 7,818,369 102,839 52,070,236 Idaho 65 14 293,000 37,422 149,945 222,159 206,891 909,417 Nevada 10 1 20,000 50,000 25,000 95,000 Oregon . .. 85 18 4,379,675 1,325,764 2,232,208 1,252,856 31,221 9,221,724 Utah 24 10 1,722,437 256,877 315,439 639,220 82,339 3,016,312 Washington 83 19 2,124,532 869,488 2,265,589 1,651,088 8,320 6,919,017 Total 547 110 37,077,839 7,668,472 15,445,093 11,608,692 431,610 72,231,706 RECAPITULATION. No. 1—Boston 163 $41,152,127 §25,612,017 $31,199,048 $79,506,099 $933,353 8178,402,644 No.2-NewYork 670 283 5,175,645,889 12,126,829 39,828,186 81,192,474 5,308,793,378 No. 3—Philadelphia.... 635 177 61,549,845 7,424,897 5,189,594 19,156,046 3,325 93,323,707 No. 4—Cleveland 764 79 89,107,869 19,207,623 13,627,137 15,536,756 30,625 137,510,010 No. 5—Richmond 530 166 184,558,887 3,229,538 5,578,056 7,522,769 23,120 200,912,370 No. 6—Atlanta 392 176 50,765,076 3,626,186 6,339,465 3,817,460 140,671 64,688,858 No. 7—Chicago 1,100 504 325,215,080 12,683,974 28,848,622 22,961,478 6,436,599 396,143,753 No. 8—St. Louis 479 92 80,665,052 8,837,051 10,085,484 8,463,883 116,677 108,168,147 No. 9—Minneapolis 776 225 23,915,992 1,584,194 4,230,874 3,505,734 1,740,722 34,977,516 No. 10—Kansas City.... 958 180 139,333,988 3,373,387 5,230,154 5,321,608 3,376,841 156,635,978 No. 11—Dallas 632 106 23,781,853 598,111 1,406,176 948,931 1,369,260 28,102,331 No. 12—San Francisco.. 547 i 110 37,077,839 7,688,472 15,445,093 11,608,692 431,610 72,231,706 Total for 3 months ending Decom- I ber,1917 7,882 ! 2,261 6,232,769,497 105,972,279 167,005,889 259,539,930 14,602,803 6,779,890,398 Percent 91.9 1.6 2.5 3.8 0.2 100.0 Total for 3 months ending December, 1916 7,627 I 75,445,200 7,861,300 7,996,000 2,180,500 93,483,000 Total for 3 months ending December, 1915 7,646 ! 7,716,900 16,641,000 17,722,900 6,651,700 48,732,500 Total for year ending Dec. 31,1917 7,882 I 5,615 8,129,297,853 | 181.023,663 272,359,039 356,996,455 29,130,950 8,968,807,965 Total for year ending Dec. 31.1916 7,627 ! 1,788 115,053,100 34,422,900 41,576,600 16,817,900 207,870,500 Total for year ending Dec. 31,1915 7,646 I 1,920 26,509,200 57,837,400 57,322,400 19,684,000 161,353,000 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

138 FEDEBAL BESBEVE BULLETIN*. FEBRUARY 1,1918. 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. Bankers* acceptances. Trade ac- Date. M ba e n m k b s e . r N co on m t m r p u e a s m n t ie b s e . r N b b e o r a n n m S k t e a s m . te - P b r a i n v k a s te . a b F n r b o d an a r a e n c g i h k g e e n n s - Total. c b m e o p o u a t p g a r e k h n n e t c t i e . n s c T ep o t t a a n l a ce c s - . cies. 1915. Feb. 22 $93,000 $93,000 $93,000 Apr. 5 3,653,000 $7,820,000 $10,000 $110,000 11,593,000 11,593,000 May3...... 5,038,000 8,189,000 10,000 110,000 13,347,000 13,347,000 June7 5,242,000 4,516,000 10,000 192,000 9,960,000 9,960,000 July3 4,342,000 5,267,000 161,000 9,770,000 9,770,000 Aug. 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 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 18,154,000 18,154,000 1916. Jan. 3 15,494,000 7,160,000 362,000 822,000 23,838,000 23,838,000 Feb.7 15,681,000 7,876,000 336,000 1,456,000 25,349,000 $489,000 25,838,000 Mar.6 17,182,000 8,670,000 408,000 1,781,000 28,041,000 462,000 28,503,000 Apr.3 , 21,000,000 13,573,000 473,000 3,262,000 38,308,000 722,000 39,030,000 Mayl 24,875,000 15,400,000 585,000 3,430,000 44,290,000 1,477,000 45,767,000 June 5 24,680,000 17,029,000 644,000 7,007,000 49,360,000 2,208,000 51,568,000 July3. 32,989,000 18,921,000 471,000 11,830,000 64,211,000 3,422,000 67,633,000 Aug.7 .... 39,695,000 19,060,000 738,000 13,940,000 73,433,000 4,225,000 77,658,000 Sept. 4 41,413,000 20,356,000 726,000 12,491,000 74,986,000 3,673,000 78,659,000 Oct.2.. 37,798,000 21,782,000 712,000 9,944,000 70,236,000 2,306,000 72,542,000 Nov.6.... 37,770,000 29,474,000 1,014,000 12,147,000 80,405,000 2,378,000 82,783,000 Dec.4 47,748,000 33,232,000 1,630,000 16,069,000 98,679,000 4,487,000 103,166,000 1917. Jan. 1 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 $140,000 88,759,000 4,041,000 92,800,000 Mar.5 53,288,000 32,518,000 1,090,000 20,581,000 354,000 107,837,000 2,535,000 110,366,000 Apr. 2 43,979,000 20,328,000 689,000 16,830,000 200,000 82,026,000 1,144,000 83,170,000 May7 49,192,000 19,650,000 236,000 19,177,000 94,000 88,349,000 1,679,000 90,028,000 June 4 69,262,000 27,611,000 584,000 21,077,000 239,000 118,773,000 3,022,000 121,795,000 July 14-16 108,597,000 30,390,000 3,333,000 38,082,000 3,805,000 184,785,000 4,660,000 189,445,000 July 31 112,433,000 43,107,000 2,564,000 20,782,000 1,087,000 179,973,000 4,242,000 184,215,000 Aug. 31 94,597,000 33,273,000 2,312,000 18,086,000 1,369,000 149,637,000 4,952,000 154,589,000 Sept. 29 131,997,000 14,987,000 2,193,000 21,708,000 2,286,000 173,171,000 6,942,000 180,113,000 Oct. 31 150,301,000 3,147,000 1,307,000 21,083,000 2,153,000 177,991,000 6,224,000 184,216,000 Nov. 30 171,723,000 5,338,000 753,000 18,201,000 3,163,000 199,178,000 6,275,000 205,453,000 Dec. 31 227,717,000 8,163,000 3,179,000 20,137,000 7,657,000 266,853,000 6,383,000 273,236,000 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FEBRUARY 1,1918. FEDERAL RESERVE BULLETIN. 139 Amounts of bills discounted and acceptances and warrants bought by each Federal Reserve Bank during December 1917, f distributed by maturities. 15-day maturities. 30-day maturities. Banks. Discounts. A a c n c c e e p s t . - Warrants. Total. Discounts. Acceptances. Warrants. Total. Boston $20,137,602 $101,294 $20, 238, $14,922,952 $253,173 $15,176,125 New York 192,834,756 1,613,396 194,448, 7,521,946 4,597,042 12,118,988 Philadelphia.. 32,125,650 32, 125, 6,206,425 234,544 6,440,969 Cleveland 38,051,343 38,051, 13,084,184 1,277,479 14,361,663 Richmond 112,143,939 421,399 112,565, 1,852,264 2,042,777 3,895,041 Atlanta 18,660,328 1,070,000 $61,000 19,791, 1,333,661 954,237 $25,210 2,313,108 Chicago 116,649,863 116, 649, 3,737,095 59,218 3,796,313 St. Louis 36,715,274 57,875 36,773, 3,927,090 189,529 4,116,619 Minneapolis... 3,890,704 3,959r 446,026 2,108,506 2,556,532 Kansas City... 33,698,605 33,,698, 2,039,877 5,630 2,045,507 Dallas 2,117,832 250,000 37 144,134 750,000 894,134 San Francisco. 9,206,883 2,124,562 111 331,445 3,731,567 2,571,795 6,303,362 Total. 616,232,779 5,707,389 61,000 622,001,168 58,947,221 15,043,930 25,210 74,018,361 Percent 58.1 6.9 60-day maturities. 90-day maturities. Banks. Discounts. Acceptances. Warrants. Total. Discounts. Acceptances. Warrants. Total. Boston $25,837,504 $1,734,229 $27,571,733 $44,947,757 $10,518,235 $55,465,992 New York.... 27,316,976 25,675,107 52,992,083 34,559,297 75,030,029 109,589,326 Philadelphia. 2,897,808 787,040 3,684,848 3,795,492 4,806,558 8,602,050 Cleveland 5,913,406 1,568,573 7,481,979 6,577,941 5,177,934 11,755,875 Richmond... 2,444,607 2,188,588 4,633,195 3,082,714 2,646,703 5,729,417 Atlanta 2,856,890 2,085,999 $165 4,943,054 1,782,415 1,719,987 $2,779 3,505,181 Chicago 7,961,592 247,477 6,555,668 4,541,136 11,096,804 St. Louis 5,258,450 533,552 5,792,002 4,038,398 1,261,750 5,300,148 Minneapolis.. 1,406,385 1,319,410 2,725,795 1,685,870 1,818,465 3,504,335 Kansas City.. 2,634,596 8 091 2,642,687 1,990,031 3,051 1,993,082 Dallas. 312,127 1,864,798 2,176,925 225,497 1,934,796 2,160,293 9,718,057 4,153,504 13,871,561 6,981,795 2,843,725 9,825,120 Total. 94,558,398 42,166,368 165 136,724,931 116,222,875 112,302,369 2,779 228,527,623 Percent 12.8 21.8 Over 90-day maturities. Total. Per cent. Banks. Discounts. A a c n c c e e p s t . - r W an a t r s - . Total. Discounts. A a c n c c e e p s. t- r W an a t r s - . Total. co D u is n - ts. a c n A e c c p - e t s - . r W an a t r s - . Total. Boston $233,060 $390,500 $623,500 $106,078,875 $12,997,431 $119,076,306 89.1 10.9 100.0 New York 262,232,975 106,915,574 369,148,549 71.0 29.0 100.0 Philadelphia... 170,000 170,000 45,025,375 5,998,142 51,023,517 88.2 11.8 100.0 Cleveland 4,313 683,026 687,339 63,631,187 8,707,012 72,338,199 88.0 12.0 100.0 Richmond 8,047 150,000 158,047 119,531,571 7,449,467 126,981,038 94.1 5.9 100.0 Atlanta 32,842 $2,200 35,042 24,666,136 5,830,223 $91,354 30,587,713 80.6 19.1 0.3 100.0 Chicago 2,110,221 "166*886' 2,217,107 137,014,439 4,954,717 141,969,156 96.5 3.5 100.0 St. Louis 43,493 667,479 710,972 49,982,705 2,710,185 52,692,890 94.9 5.1 100.0 Minneapolis... 1,011,009 110,962 1,121,971 8,439,994 5,426,206 13,866,200 60.9 39.1 100.0 Kansas City... 1,847,892 1,847,892 42,211,001 16,772 42,227,773 99.9 0.1 100.0 Dallas 745,403 104,194 849,597 3,544,993 4,799,594 104,194 8,448,781 42.0 56.8 1.2 100.0 San Francisco. 240,221 570,100 810,321 29,878,523 12,263,686 42,142,209 70.9 29.1 100.0 Total.... 6,276,501 2,848,953 106,394 9,231,848 892,237,774 178,069,009 195,548 1,070,502,331 Percent 0.9 100.0 16.6 0.1 100.0 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

140 FEDERAL EESEBVE BULLETIN. FEBBUABY 1,191$. Maturities of discounts, acceptances, and municipal warrants held by each Federal Reserve Bank on Friday, Dec, 28, 1917. [In thousands of dollars, i. e., 000 omitted.] 1 to 15 days. 16 to 30 days. Banks. B co il u l n s t d e i d s . - b A o a c n u c c g e e h p s t t . - M wa u r n r i a c n ip ts a . l Total. B co il u ls n t d e i d s- . b A o a c n u c c g e e h p s t t - . M wa u r n r i a c n ip ts a . l Total. Boston 13,047 981 14,028 7,804 1,204 9,008 New York 141,907 13,631 155,538 10,804 22,043 32,847 Philadelphia.. 20,877 2,135 23,022 2,877 6,823 9,700 Cleveland 23,767 5,177 28,951 4,573 6,812 11,385 Richmond 21,232 2,534 23,766 1,902 4,494 Atlanta 10,374 1,370 28 11,772 1,932 703 10 2,645 Chicago 70,316 1,493 71,809 14,385 1,649 16,034 St. Louis 21,710 819 22,529 4,681 1,809 6,490 Minneapolis... 2,765 2,284 5,074 1,140 3,129 4,269 Kansas City... 19,904 1,408 21,310 2,736 9 2,745 Dallas 1,665 1,233 2,944 105 6,947 7,052 San Francisco. 7,809 7,258 15,067 4,428 5,555 9,983 Total. 355,373 40,321 116 395,810 57,367 61,177 10 118,554 Percent 41.4 12.4 31 to 60 days. 61 to 90 days. Banks. B co il u ls n t d e i d s- . b A a o c n u c c g e e h p s t t - . M wa u r n r i a c n ip ts a . l Total. B co il u ls n t d e i d s . - b A o a c n u c c g e e h p s t t . - M wa u r n r i a c n ip ts a . l Total. Boston. 8,862 715 9,577 36,218 5,441 41,659 New York..... 78,859 67,700 511 147,070 23,415 44,751 68,166 Philadelphia.. 13,133 5,019 18,152 2,634 4,440 7,074 Cleveland 12,587 7,126 19,713 3,669 2,911 6,580 Richmond 5,342 4,113 9,455 1,619 1,897 3,516 Atlanta 2,728 3,868 141 6,737 1,179 994 123 2,296 Chicago 12,289 1,227 13,516 5,346 4,293 9,639 St. Louis 10,753 3,076 13,829 2,592 1,676 4,268 Minneapolis... 6,776 2,037 8,813 1,384 349 1,733 Kansas City... 8,504 10 8,514 1,628 1,628 Dallas 5,774 6,185 11,959 439 442 San Francisco. 9,399 4,056 13,455 3,851 1,981 5,832 Total. 175,006 105,132 652 280,790 83,974 123 152,833 Percent 29.3 16.0 Over 90 days. Total. Percentages. Banks. c B o d e u i i d l s n l . - s t- b A a o c n u c c g e e h p s t t . - M r w a i u p n a n a t r i l s - c . - Total. c B o d e u i i d s l n . l - s t- b A a o c n u c c g e e p h s t t - . M r w a i u p n a n a t r i l s - c . - Total. c B o d e u i i d l s n . l - s t- b A a o c n u c c g e e p h s t t - . M r w a i u p n a n a t r i l s - c . - Total. Boston... 65,931 8,341 74,272 88.8 11.2 100.0 New York 254,985 148,125 511 403,621 63.2 36.7 0.1 100.0 Philadelphia... 39,521 18,417 10 57,948 68.2 31.8 100.0 Cleveland..... 5 44,601 22,026 7 66,634 66.9 33.1 100.0 Richmond 12 30,107 13,038 43,145 69.8 30.2 100.0 Atlanta 47 16,260 6,935 23,497 69.2 29.5 1.3 100.0 Chicago 4,189 106,525 8,662 115,187 92.5 7.5 100.0 St. Louis 76 76 39,812 7,380 47,192 84.4 15.6 100.0 Minneapolis... 1,426 1,426 13,491 7,799 25 21,315 63.3 36.6 100.0 D K a a l n l s a a s s City... 2,0 8 4 9 2 0 104 2,0 9 4 9 2 4 3 8 4 , , 8 81 7 4 3 1 1 4 , , 4 3 2 6 5 8 'iho 3 2 6 3 , , 2 3 3 9 9 1 3 96 8 . . 1 0 6 3 1 . . 9 4 1 1 0 0 0 0 . . 0 0 San Francisco. 299 299 25,786 18,850 44,636 57.8 42.2 100.0 Total. 8,986 104 9,090 680,706 275,366 1,005 957,077 71.1 28.8 100.0 Percent 100.0 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FEBRUARY 1,1918. FEDERAL RESERVE BULLETIN. 141 Total investment operations, exclusive of purchases of United States certificates of indebtedness, of each Federal Reserve Bank during the months of December, 1917 and 1916, and the year ending Dec. 28, 1917 and 1916. Bills dis- Bills bought in open market. Municipal warrants. counted for Federal Reserve Banks. members and s F e e rv d e e r B al a n R k e s - . B c a e n p k ta e n rs c ' e a s c . - Trade ac- Total. City. State. ot A h l e l r. Total. Boston $106,078,875 $12,399,766 $597,665 $12,997,431 New York 262,232,975 104,832,313 2,083,261 106,915,574 Philadelphia 45,025,375 5,944,693 53,449 5,998,142 Cleveland 63,631,187 8,707,012 8,707,012 Richmond 119,531,571 7,449,467 7,449,467 Atlanta 24,666,136 5,830,223 5,830,223 820,210 $2,944 $68,200 $91,354 Chicago 137,014,439 4,954,717 4,954,717 St. Louis 49,982,705 2,710,185 2,710,185 Minneapolis ,.. 8,439,994 5,426,206 5,426,206 Kansas City 42,211,001 16,772 16,772 Dallas 3,544,993 4,799,594 4,799,594 104,194 104,194 San Francisco 29,878,523 11,373,218 890,468 12,263,686 Total, December, 1917. 892,237,774 174,444,166 3,624,843 178,069,009 124,404 2,944 68,200 195,548 Total, December, 1916 63,716,000 64,946,600 1,924,900 66,871,500 3,385,200 2,600 16,200 3,404,000 Total, 12 months ending Dec. 31,1917 1,968,807,965 1,051,807,580 30,947,981 1,082,755,561 15,769,759 263,059 788,748 16,821,566 Total, 12 months ending Dec. 31,1916 207,870,500 369,762,300 16,332,700 386,095; 000 85,662,400 4,087,100 936,500 90,686,0Q0 United States bonds and Treasury notes. Total investment operations. Federal Reserve Banks. c 2 e p n e t r . 3 c e p n e t r . 3 c £ e n p t e . r c 4 e p n e t r . T n r 1 e o -y a t s e e u a s. r ry Total. Dec 19 e 1 m 7. ber, Dec 1 e 91 m 6 b . er, D 1 e b 9 c e 1 e r 7 m , . - D 1 e b 9 c e 1 e r 6 m , . - Per ct. Per ct. Boston... $2,120 $2,120 $119,078,426 $20,023,200 10.9 14.3 New York 3,122,950 3,122,950 372,271,499 38,707,500 34.2 27.8 Philadelphia.. $399,750 10,448,300 10,448,050 61,871,567 18,781,700 5.6 13.5 Cleveland 1,000 1,000 72,339,199 10,131,100 6.6 7.3 Richmond. 42,900 42,900 127,023,938 9,735,050 11.6 7.0 Atlanta 5,539,400 6,539,400 37,127,113 5,150,100 3.4 3.7 Chicago... $10,000 10 000 141,979,156 14,416,200 13.0 10.3 St. Louis 52,692,890 5,911,000 4.8 4.2 Minneapolis... 13,866,200 5,750,800 1.3 4.1 Kansas City... 42,227,773 3,203,600 2.3 Dallas 775,000 50,000 825,000 9,273,781 1 848 900 1.3 San Francisco. 15,000 15,000 42,157,209 5,872,100 3.9 4.2 Total, December, 1917 1,190,750 20,205,670 10,000 21,406,420 1,091,908,751 100.0 Total, December, 1916 $5,249,750 $40,000 250,000 5,539,750 139,531,250 100.0 Total, 12 months ending Dec. 31, 1917 13,997,200 188,540 45,787,610 21,562,319 7,069,000 88,606,316 10,156,699,812 Total, 12 months ending Dec. 31, 1916 48,128,100 3,918,880 4,403,200 300,000 56,750,180 741,401,680 United States securities held by each Federal Reserve Bank on Dec. 31,1917, distributed hy maturities. United States bonds with circulation privilege. United States bonds without circulation privilege. Federal Reserve Bank. 2 c o p n e s r o l c s e o n f t 2 1 P 9 p a 3 e n 6 r o - a 1 f m c 9 e 3 a n 8 s t . 3 l p o 1 e a 9 r n 1 8 c o . e f nt 4 l p o 1 e a 9 r n 2 5 c o . e f nt c 3 o b 1 n p o 9 v e n 4 r e 6 d r - s c s 4 e i o 7 o n f . n t 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 lo 3 1 c a 9 e p n 6 n e 1 t o r . f c e e r o 3 t n f y ^ t 1 p L 9 lo e 4 i r a 7 b n . - 4 1 L 9 l p 4 o i e 2 b a r - n e 1 c r 9 o t e 4 y f n 7 t . t i U i n f . i d n c e S a e b . t s e t s c e s . e d o r - - f Total. Boston $750 $529, $2,194,000 $80,000 i$118,992 $2,922,742 New York 50 $50,000 1,255, 4,493,000 411,150 3,470,150 $15,000,000 24,679,850 Philadelphia $100 549, 2,548,000 249,850 6,302,800 9,649,950 Cleveland 6,400 467,200 2,653,660 $2,378,200 414, 3,221,000 2,027,000 320,750 _2.8,050,000 39,539,010 Richmond 915.100 237,000 1,969,000 42,900 41,450 I. 3,205,450 Atlanta 640',600 21,000 10, 1,491,000 215,900 1,509,200 |. •3,888,000 Chicago 862,500 367,300 "2,"58i,"666""i,'768,"666' 427, 3,378,000 $400 10,384,600 St. Louis... 100 1,080,000 1,153, 1,444,000 3,677,400 Minneapolis. 323,050 16,260 1,199,180 206,250 114, 1,340,000 500 27,950 500 3,228,490 Kansas City 155,850 22,240 825,000 838, 1,784,000 7,500 10,633,090 Dallas 450,900 281,500 1,233, 1,430,000 477,100 53,000 5,926,100 San Francisco . 428,750 1,500,000 26,250 3,955,000 Total 15,784,050 1,412,600 7,563,840 I 5,177,450 6,526,400 26,792,000 900 3,537,650 11,844,292 (43,050,500 121,689,682 1 Includes unpaid portion of Liberty Loan bonds sold to individual subscribers. Total United States bonds with circulation privilege, $29,937,940. Total United States securities without circulation privilege, $91,632,750. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

142 FEDEEAL 3ESEBVE BULLETIN. FEBRUARY 1,1918. RESOURCES AND LIABILITIES OF FEDERAL RESERVE BANKS. Resources and liabilities of each Federal Reserve Bank and of the Federal Reserve system at close of business on Fridays, Dec. 28, 1917, to Jan. 25, 1918. RESOURCES. [In thousands of dollars; i. e., 000 omitted.] l Boston. Y N o e r w k. d P el h p i h la ia - . C la le n v d e . - m R o ic n h d - . Atlanta. c C a h g i o - . Lo S u t. is. M ap i o n l n is e . - K C an it s y a . s Dallas. F S r a a n n- Total. cisco. Gold coin and certificates in vault: Dec.28 , 19,900 18,322 29,202 6,206 5,740 31,885 4,996 14,757 1,588 12,241 31,774 499,917 Jan.4 19,427 305,660 18,187 26,658 6,181 6,102 37,957 6,373 14,832 1,456 11,618 25,621 480,072 Jan. 11 , 16,472 312,564 18,614 25,434 6,349 31,259 7,927 15,005 1,669 10,965 26,372 478,839 Jan. 18 14,772 318,465 18,759 23,146 6,260 6,462 31,279 5,021 14,917 1,500 10,103 26,617 477,301 Jan. 25 13,865 317,072 18,790 20,382 6,257 6,531 31,549 5,474 15,181 1,390 9,310 26,231 472,012 Gold settlement fund—Federal Reserve Board: Dec.28 16,977 20,854 39,101 37,168 22,097 13,407 54,674 17,884 20,287 37,206 24,223 13,642 317,520 Jan. 4 10,506 21,082 29,687 50,030 25,171 21,295 58,177 21,314 17,409 38,461 23,407 22,148 338,687 Jan. 11 25,284 43,519 38,993 28,179 22,684 15,833 78,270 21,669 12,998 30,314 20,209 25,570 361,522 Jan. 18 37,425 60,689 30,827 45,512 14,890 16,434 77,329 24,076 9,512 23,335 16,310 26,893 383,232 Jan. 25 34,290 97,111 37,196 40,184 12,367 16,893 39,014 26,656 14,554 24,635 19,368 25,942 388,210 Gold with foreign agencies: Dec.28.... 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 Jan.4.. 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 Jan. 11 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 Jan. 18 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 Jan. 25.... 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 agents: Dec.28 37,897 250,599 56,946 55,410 31,602 49,821 124,400 32,366 31,920 42,052 25,037 43,801 781,851 Jan.4 41,071 250,595 63,884 57,794 26,546 47,701 131,403 31,241 32,910 42,025 25,037 46,984 797,191 Jan. 11 42,424 227,052 63,102 59,693 26,478 50,053 129,356 31,441 35,699 44,950 24,121 49,957 784,326 Jan. 18 43,407 236,700 68,376 61,850 26,360 49,226 118,133 35,308 37,621 48' 422 23,892 49,432 796,727 Jan. 25 44,354 236,467 64,916 64,610 26,305 47,575 120,514 34,882 37,522 48,369 22,181 46,134 793,829 Gold-redemption fund: Dec.28... 2,000 10,000 1,500 99 485 1,099 615 507 1,218 24 19,345 Jan.4 2,000 10,000 1,500 28 433 1,110 614 930 878 507 1,236 34 19,270 Jan. 11 2,000 10,000 1,500 92 379 1,183 668 908 1,037 484 1,240 152 19,643 Jan. 18 1,987 10,107 1,500 48 298 1,231 742 901 1,122 478 1,258 38 19,710 Jan. 25 2,000 10,000 1,500 61 251 1,483 815 1,159 465 1,253 81 19,956 Total gold reserves: Dec.28 , 80,449 622,871 119,544 126,604 62,227 71,642 218,924 58,276 83,978 64,557 92,129 1,671,133 Jan.4 76,679 605,449 116,933 139,235 60,168 77, 783235,501 61,958 68,129 85,074 63,136 97,675 1,687,720 Jan. 11 89,855 611^247 123,884 118,123 57,587 74, 993246,903 64,045 66,839 80,042 58, 373104,939 1,696,830 Jan. 18 101,266 644,073 121,137 135,281 49,645 74,928 234,833 67,406 65,272 76,360 53,401 105,868 1,729,470 Jan. 25 98,184 678,762 126,077 129,942 47,017 74, 057 70,000 70,516 77,484 53, 950101,276 1,726,507 Legal tender notes, silver, etc.: Dec.28 .' , 3,960 40,784 1,149 210 185 444 771 634 365 53 714 49,635 Jan. 4 , 3,729 35,000 1,789 274 235 434 1,301 889 457 787 45,310 Jan. 11 ,.., 4,795 36,347 2,404 780 196 781 2,620 1,419 510 870 391 51,201 Jan. 18 5,148 37,439 2,611 1,162 198 779 3,594 1,707 582 54 1,203 360 54,837 Jan. 25 5,346 37,901 2,243 1,327 176 871 4,462 1,336 627 90 1,445 428 56,252 Total cash reserves: Dec.28 84,409 663,655 120,693 126,814 62,412 72,086 219,695 58,910 70,297 84,031 65,271 92,495 1,720,768 Jan. 4 80,408 640,449 118,722 139,509 60,403 78,217 236,802 62,847 68,586 85,120 63,923 98,044 1,733,030 Jan. 11 ., 94,650 647,594 126,288 118,903 57,783 75,774 249,523 65,464 67,349 80,130 59,243 105,330 1,748,031 Jan. 18 , 106,414 681,512 123,748 136,443 49,843 75,707 238,427 69,113 65,854 76,414 54,604 106,228 1,784,307 Jan. 25 103,530 716,663 128,320 131,269 47,193 74,928 203,704 71,336 71,143 77,574 55,395 101,704 1,782,759 Bills discounted for members and Federal Reserve Banks: Dec.28 65,931 254,985 39,521 44,601 30,107 16,260 106,525 39,812 13,491 34,814 8,873 25,786 680,706 Jan. 4 57,321 242,618 32,963 41,012 27,086 14,687 94,112 34,299 12,764 35,484 8,997 24,470 625,813 Jan. 11 51,210 232,430 29,156 33,672 23,528 15,302 80,889 28,611 12,220 32,873 8,635 22,139 570,665 Jan. 18 50,628 227,314 31,163 37,573 33,061 12,695 106,170 12,505 29,518 8,649 25,826 603,488 Jan. 25 52,844 222,620 33,810 49,360 32,254 11,348 110,924 29,966 13,140 32,545 9,499 29,352 627,662 Bills bought in open market: Dec.28 , 8,341 148,125 18,417 22,026 13,038 8,662 7,380 7,799 1,425 14,388 18,850 275,366 Jan.4 9,633 152,377 18,384 18,968 13,829 6,373 8,370 7,416 6,425 544 13,623 15,416 271,338 Jan. 11 , 5,832 150,982 17,045 17,300 13,780 2,424 8,578 7,384 4,973 32 13,563 16,817 258,710 Jan. 18 6,350 155,570 14,269 13,397 12,586 6,750 9,002 6,241 2,687 35 13,531 17,386 257,804 Jan. 25 9,307 168,278 14,179 12,978 13,403 6,824 8,521 5,930 2.226 35 13,263 18,968 273,912 United States Government long-term securities: Dec.28 610 1,309 7,467 1,221 2,547 7,007 2,233 1,888 8,849 4,496 2,455 48,350 Jan.4 610 5,167 6,566 8,268 1,231 2,397 7,007 2,233 1,888 8,849 4,496 2,455 51,167 Jan. 11 , 610 5,152 5,417 8,268 1,231 1,771 7,007 2,233 2,004 8,862 4,496 2,455 49,506 Jan. 18 , 610 1,305 5,541 8,266 1,231 1,646 7,007 2,233 2,214 8,862 4,541 2,455 45,911 Jan. 25, , 610 5,120 5,307 8,265 1,231 1,747 7,007 2,233 3,617 8,862 4,071 2,455 50,525 United States Government short-term securities: Dec.28 , 2,194 2,648 31,221 1,491 3,368 1,444 1,341 1,784 1,430 1,500 58,883 Jan. 4 , 2,194 32,113 2,548 35,271 1,491 3,378 1,444 1,938 5,784 2,430 1,500 92,058 Jan. 11 2,194 68,113 3,300 43,771 1,491 3,378 1,444 1,853 5,784 2,430 1,500 137,227 Jan. 18 , 4,344 52,996 3,025 39,771 1,491 5,878 1,444 1,678 5,784 2,430 1,500 122,310 Jan. 25 4,344 15,213 4,023 26,271 1,491 5,878 1,444 2,322 5,784 2,430 1,500 72,669 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FEBRUARY 1,1918. FEDERAL RESERVE BULLETIN*. 143 Resourses and liabilities of each Federal Reserve Bank and of the Federal Reserve system at dose of business on Friday s Bee. t 28, 1917, to Jan. 25, 1918—Continued. E ESOUECES—Continued. [In thousands of dollars; i. e., 000 omitted.] Boston. Y N o e r w k. d P el h p i h la ia - . C la le n v d e . - m R o ic n h d - . Atlanta. c C a h g i o - . Lo S u t. is. M ap i o n l n is e . - City. Dallas. F c S i r s a a c n n o - . Total. Municipal warrants: Dec. 28 511 10 302 25 150 1,005 All other earning assets: Jan.4 511 854 768 773 960 1,267 4 5,167 Jan. 11 511 12 810 652 763 1,000 1,265 50 5,063 Jan. 18.. ! 511 142 606 467 1,001 773 56 4,224 Jan. 25 511 10 1,651 280 1,003 707 66 4,902 Total earning assets: Dec. 28 77,076 413,423 68,063 106,123 46,335 27,535 125,562 50,869 24,544 46,872 29,317 48,591 1,064,310 Jan.4 69,758 432,786 60,441 103,519 44,145 25,802 113,635 46,165 23,973 50,661 30,813 43, 845 1,045,543 Jan. 11 59,846 457,188 54,918 103, Oil 40,520 21,798 100,504 40,435 22,050 47,551 30,389 42, 961 1,021,171 Jan. 18...., 61,932 437,696 53,998 99,007 23,250 38, 771 20.085 44,199 29,924 47,223 1,033, 737 Jan. 25 67,105 411,742 57,329 96,874 48, 923 22,018 .133,981 39,853 22,308 47,226 29,970 52,341 1,029,670 Due from other Federal Reserve Banks—net: Dec. 28 9,216 2,112 5,692 6,078 1,065 2,659 5,724 1 11,976 Jan. 4 11,942 12,163 8,836 2,218 2,426 10,847 145,244 Jan. 11 2,361 10,565 ***935 8,964 8,128 932 5,386 128,229 Jan. 18 1,399 20,938 5,596 5,274 4,761 5,831 8,155 2,417 135,818 Jan. 25 364 10,330 4,045 14,573 5,164 6,087 1,792 1,961 132,505 Uncollected items: Dec. 28... 19,012 75,975 32,856 22,180 19,784 17,090 36,841 16,538 9,344 23,615 15,307 12,525 301,067 Jan. 4.. 22,136 77,477 32,189 20,717 12,931 17,384 38,174 19,198 10,468 19,967 18,668 12,698 302,007 Jan. 11 21,933 70,302 41,242 19,436 14,872 20,541 35,383 18,080 10,948 25,194 16,152 12,510 306,593 Jan. 18 23,570 83,895 46,772 23,089 19,313 22,805 61,375 18,436 14,212 32,043 18,745 17,453 381,708 Jan. 25 16,395 75,298 38,917 21,653 18,609 20,496 45,772 17,028 10,236 27,728 18,465 13,106 323,703 Total deductions from gross deposits: Dec. 28 19,012 75,975 32,856 31,396 19,784 19,202 42,533 22,616 10,4.09 26,274 15,307 18,249 313,043 Jan.4. 30,472 77,477 44,131 20, 717 12,931 17,384 50,337 28,034 12,686 22,393 18,668 23,545 347,251 Jan. 11 24,294 70,302 41,242 30,001 14,872 21,476 44,347 26,208 11,880 30,580 16,152 12,510 334,822 Jan. 18 24,969 83,895 53,971 44,027 24,909 22,805 23,197 20,043 40,198 21,162 17,453 417,526 Jan. 25 16,395 75,662 38,917 31,983 22,654 20,496 60,345 22,192 10,236 33,815 20,257 15,067 356,208 5 per cent redemption fund against Federal Reserve bank notes: Dec. 28... 400 137 537 Jan.4 400 137 537 Jan. 11 400 137 537 Jan. 18 400 137 537 Jan. 25 400 137 537 All other resources: Dec. 28.. 287 337 492 316 661 720 2,813 Jan.4 1 239 117 178 537 Jan. 11 397 82 40 519 Jan. 18 239 95 7 379 Jan. 25 130 71 201 Total resources: Dec. 28 180,497 1,153,053 221,612 264,333 128,818 119,160 388,282 132,711 105,911 157,577 110,752 159,335 3,101,471 Jan. 4.... 180,638 1,150,712 223,294 263,745 117,718 121,520 400,777 137,046 105,245 158,574 113,541 165,612 3,126,898 Jan. 11 178,790 1,175,084 222,448 251,915 113,572 119,130 394,374 132,107 101,279 158,661 105,921 160,841 3,105,080 Jan. 18 - 193,315 1,203,103 231,717 279,477 123,980 121,857 433,777 131,081 105,982 161,211 105,827 170,911 3,236,486 Jan. 25 187,030 1,204,067 224,566 260,126 118,900 117,513 398,030 133,381 103,687 159,015 105,759 169,112 3,169,375 LIABILITIES. Capital paid in: Dec.28.. 5,858 18,684 5,887 8026 3,664 2,811 9,067 3,474 2,617 3,396 2,795 4,163 70,442 Jan.4 5,859 18,696 6,142 8038 3,664 2,819 9,114 3,475 2,620 3,397 2,795 4,206 70,825 Jan. 11.... 5,858 18,718 6,773 8068 3,694 2,857 9,121 3,475 2,642 3,396 2,795 4,206 71,603 Jan. 18 5,906 18,978 6,775 8088 3,697 2,858 9,142 3,475 2,643 3,398 2,799 4,203 71,938 Jan. 25 5,929 19,212 6,775 8221 3,736 2,855 9,170 3,481 2,651 3,396 2,798 4,217 72,439 Surplus: Jan. 4 75 649 116 40 216 38 1,134 Jan. 11 75 649 116 40 216 38 1,134 Jan. 18 75 649 116 40 216 38 1,134 Jan. 25 75 649 116 40 216 38 1,134 Government deposits: Dec.28 6,798 8,838 5,638 30,797 3,278 4,704 6,829 5,874 8,064 8,943 6,334 12,116 108,213 Jan.4 6,637 21,764 10,354 25,212 2,821 4,779 9,891 4,199 9,780 11,556 10,657 13,356 131,006 Jan. 11 1,036 12,216 2,772 9,480 2 617 3,064 3,681 3,247 5,502 4,841 6,319 6,315 57,856 Jan. 18 25,374 21,483 19,361 45,094 14,038 5,222 45,446 8,874 11,814 13,189 8,110 21,824 239,829 Jan. 25 5,217 16,227 10,970 20,899 6,134 5,280 13,603 .11,619 7,943 11,038 10,274 16,457 135,691 Due to members—reserve account: Dec.28 79,215 663,613 84,382 107,946 43,721 38,176 189,789 49,391 40,314 68,968 44,980 62,671 1,453,166 Jan.4 77,666 643,590 88,936 111,237 44,265 38,598 170,793 55,546 39,389 69,199 43,891 66,120 1,449,230 Jan. 11 80,710 671,696 91,234 112,764 44,941 39,178 178,270 53,427 39,418 74,564 43,670 68,610 1,498,482 Jan. 18 70,856 645,384 80,622 104,685 40,808 38,671 175,295 49,954 38,212 70,019 42,878 64,192 1,421,576 Jan. 25 79,295 680,314 84,061 110,521 42,979 37.696 173,351 49,015 38,814 73,366 42,147 69,184 1,480,743 i Difference between net amounts due from and net amounts due to other Federal Reserve Banks, a Overdraft. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

144 FEDERAL JEtESBBVE BULLETIN. FEBRUARY 1,1918. Resources and liabilities of each Federal Reserve Bank and the Federal Reserve system at close of business on Fncays, Dec. 28, 1617; to Jan. 25, 1918. LIABILITIES-Continued. [In thousands of dollars; i. e., 000 omitted.] Boston. Y N o e r w k. d P el h p i h la ia - . C la le n v d e . - m R o ic n h d - . Atlanta. c C a h g i o - . Lo S u t. is. M ap i o n l n is e . - K C a i n ty sa . s Dallas. F c S i r s a a c n n o - . Total. Collection items: Pec 28 14,861 40,982 27,076 14,551 14.144 7,909 21,582 13,512 5,305 12,549 8,747 10,471 191,689 Jan 4 . • •. - 15,960 43,071 24,428 13,912 I ii'.O22 10,681 24,952 14,101 3,829 10,507 9,582 10,604 192,649 Jan 11 15,624 55,441 27,617 15,274 11,664 11,137 21,542 13,359 4,379 10,701 6,699 9,636 203,073 Jan. 18 16,244 66,244 32,990 16,175 14,073 13,836 20,584 11,114 4,075 10,409 6,472 9,512 221,728 Jan 25 - 12j 480 55,906 29,025 15,206 12,792 11,675 18,793 12,840 3,573 7,551 5,830 9,284 194,955 Due to other Federal Reserve Banks—net: Dec 28 606 9,085 4,343 5,816 720 jan 4 5,340 4,014 1,382 760 28 Jan. 11» 7,095 676 728 336 207 Jan 18 25,289 254 209 Jan. 25 7 832 2 084 225 i.670 Other deposits, including foreign Government credits: Pec 28 12 150 109 52 2,930 187 7 28 2,506 17,969 Jan. 4 13,440 69 4 4,013 409 31 25 2,603 20,594 Jan 11 . 13,496 104 4 3,280 319 11 21 3,080 20,315 Jan. 18 . „ 24,809 70 3 2,818 299 13 21 2,746 30,779 Jan. 25 32,275 231 3 2,580 111 28 21 2,448 37,697 Total gross deposits: Dec. 28... 101,480 734,668 121,439 153,403 66,959 50,841 201,130 68,964 53,690 90,488 60,781 87,764 1,771,037 Jan. 4 100,263 727,205 123,718 154,444 59,490 54,822 209,649 74,255 53,029 91,287 64,158 92,683 1,793,479 Jan. 11. 97,370 759,944 122,299 137,622 56,716 53,383 206, 773 70,352 49,310 90,127 57,024 87,848 1,779,726 Jan. 18 112,474 783,209 132,973 166,024 68,919 57,986 244,143 70,241 54.114 93,638 57,460 98,483 1,913,912 Jan 25 104,854 784,722 126,140 146,857 61,905 54,879 208,327 73,585 52; 028 91,976 58,251 97,373 1,849,086 Federal Reserve notes in actual circulation: Pec 28 72,214 396,970 93,643 102,221 58,195 65,508 178,085 60,273 49,604 55,299 47,176 67,300 1,246,488 Jan 4 74,246 402,900 93,229 101,225 54,448 63,839 181,798 59,146 49,543 55,585 46,523 68,723 1,251,205 Jan. 11 75,308 394,466 93,218 106,115 53,046 62,850 178,199 58,054 49,266 56,817 46,073 68,787 1,242,199 Jan 18 74,682 398,610 91,823 105,282 51,248 60,975 180,276 57,142 49,172 55,852 45,510 68,225 1,238,797 Jan 25 75,872 397,462 91,430 104,756 53,143 59,739 180,165 56,061 48,930 55,278 44,617 67,481 1,234,934 Federal Reserve bank notes in circulation—net liability: Dec. 28 8,000 8,000 Jan. 4 8,000 8,000 Jan. 11 8,000 8,000 Jan. 18 8,000 8,000 Jan. 25 8,000 8,000 All other liabilities: Pec. 28 945 2,731 643 683 394 • 108 5,504 Jan.4 195 1,262 205 38 170 15 305 65 2,255 Jan. 11 179 1,307 158 110 65 226 23 321 29 2,418 Jan. 18 178 1,657 146 103 223 15 325 58 2,705 Jan. 25 300 2,022 221 292 152 254 40 365 95 41 3,782 Total liabilities: Dec. 28 180,497 1,153,053 221,612 264,333 128,818 119,160 388,282 132,711 105,911 157,577 110,752 159,335 3,101,471 Jan. 4 180,638 1,150,712 223,294 263,745 117,718 121,520 400,777 137,046 105,245 158,574 113,541 165,612 3,126,898 Jan. 11 178,790 1,175,084 222,448 251,915 113,572 119,130 394,374 132,107 101,279 158,661 105,921 160,841 3,105,080 JJaann.. 2158 1 1 8 9 7 3 , , 0 3 3 1 0 5 1 1 , 2 2 0 0 4 3 , 0 1 6 0 7 32 Jj^ 3 j 1 ri y 7 O 1 O 7 O 2 2 7 6 9 0 ; , 1 4 2 7 6 7 1 1 1 2 8 3 , , 9 9 0 8 0 0 1 1 1 2 7 1 , , 5 85 1 7 3 3 4 9 3 8 3 , , 0 7 3 7 0 7 1 1 3 3 3 1 , , 3 0 8 8 1 1 1 1 0 0 3 5 , , 6 9 8 8 7 2 1 1 5 6 9 1 , , 0 2 1 1 5 1 1 1 0 0 5 5 , , 7 8 5 2 9 7 1 1 6 7 9 0 , , 1 9 1 1 2 1 3 3 , , 2 1 3 6 6 9 , , 4 3 8 7 6 5 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FEBRUARY 1,1918. FEDERAL RESERVE BULLETIN. 145 FEDERAL RESERVE NOTES. Federal Reserve note account of each Federal Reserve Bank at close of business on Fridays, Dec. 28, 1917, to Jan. 25, 1918. [In thousands of dollars; i. e., 000 omitted.] B to o n s- . Y N o e r w k. d P el h p i h la i - a. C la le n v d e . - m R o ic n h d - . la A n t t - a. c C a h g i o - . Lo S u t. is. M ap i o n l n is e . - K C a i n t s y a . s Dallas. F S r a a n n- Total. Federal Reserve notes received from agent—net: Dec. 28 74,297 456,339 97,326 105,710 60,840 187,780 61,863 51,016 58,062 47,727 73,905 1,341,752 Jan.4.... 77,471 474,536 97,264 105,594 59,134 66,517 191,988 60,738 51,006 57,883 47,116 77,088 1,366,335 Jan. 11 ., 78,824 470,992 99,122 108,493 58,970 66,020 188,941 59,838 50,795 61,347 46,245 78,561 1,368,148 Jan. 18 ;•.... 79,807 477,841 98,096 108,650 57,795 65,392 189,457 59,515 50,967 61,282 45,788 78,535 1,373,105 Jan. 25 80.754; 477,607 97,236 108,410 61,275 63,821 190,339 58,339 50,868 59,872 44,873 80,228 1,373,622 Federal Reserve notes held by banks: Dec. 28.. 2.083 59,369 3,683 3,489 2,645 1,379 9,695 1,590 1,412 2,763 551 6,605 95,264 Jan, 4 „ 3; 225 71J636 4,035 4,369 4,686 2,678 10,190 1,592 1,483 2.298 593 8,365 115,130 Jan. 11 3,518 76,526 5,904 2,378 5,924 3,170 10,742 1,784 1,529 4,530 172 9,774 125,949 PfJan. 18......... 5,125 79,231 6,273 3,368 6,547 4,417 9; 181 2,373 1,795 5,410 278 10,310 134,308 Jan. 25 4,882 80,145 5,806 3,654 8,132 4,082 10,174 2,278 1,938 4,594 256 12,757 138,698 Federal Reserve notes in actual circulation: Dec. 28... 72,214 102,221 58,195 65,508 178,085 60,273 49,604 55,299 47,176 67,300 1,246,488 Jan. 4 74,246 ^402,900 93,229 101,225 54,448 63,839 181, 798 59,146 49,543 55,585 46,523 68,723 1,251,205 Jan. 11 75,308 ;^394,466 93,218 106,115 53,046 62,850 178,199 58,054 49,266 58,817 46,073 68,787 1,242,199 Jan. 18 74,682 •398,610 91,823 105,282 51,248 60,975 180,276 57.142 49,172 55,852 45,510 68,225 1,238.797 Jan. 25 75,872 397,462 91,430 104,756 53,143 59,739 180,165 56,061 48,930 55,278 44,617 87,471 1,234,924 Gold deposited with or to credit of Federal Reserve agent: Dec. 28 37,897 250,599 56,946 55,410 31,602 49,821 124,400 32,368 31,920 42,052 25,037 43,801 781,851 Jan.4 41,071 250,595 63,884 57,794 26,546 47,701 131,403 31,241 32,910 42,025 25,037 46,984 797; 191 Jan. 11........ 42,424 227,052 63,102 59,693 26,478 50,053 129,356 31,441 35,699 44,950 24,121 49,957 784,326 Jan. 18 43,407 236,700 68,376 6i; 850 26,360 49,226 118,133 35,308 37,621 48,422 23,892 49,432 796,727 Jan. 25.., 44,354 236,467 64,916 64,610 26.305 47,575 120,514 34,882 37,522 48,369 22,181 46,134 Paper delivered to Federal Reserve agent: Dec. 28.. 36,668 213,400 40,981 50,825 43,386 17,805 64,133 38,785 19,836 16,244 23,241 41,421 606,705 Jan.4.... 36,682 229,811 42,234 48,009 40,945 19,810 61,473 35,080 18,449 16,208 22,620 37,009 608,324 Jan. 11 36,688 251,519 36,725 48,921 37,320 16,266 60,479 28,844 16,315 16,787 22,198 36,836 608,898 Jan. 18 36,700 241,166 33,036 50,970 45,789 16,626 72,263 28,922 14,342 12,848 22,180 36,214 609,056 Jan. 25 36,703 245,780 37,322 62,338 45,657 16,303 70,776 28,032 14,170 12,856 22,762 41,664 634,363 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

146 FEDERAL BESERVE BULLETIN. FEBRUARY 1,1918. Federal Reserve note account of each Federal Reserve agent at close of business on Fridays, Dec. 28, 1917, to Jan. 25, 1918. [In thousands of dollars; i. e., 000 omitted.] B to o n s . - Y N o ew rk. d P el h p i h la ia - . C la le n v d e . - m R o ic n h d - . la A n t t - a. c C a h g i o - . Lo S u t. is. M ap in o n li e s. - City. Dallas. F ci r s a c n o - . Total. FEDERAL RESERVE NOTES. Received from Comptroller: Dec. 28 103,160 673,080 125,480 128,520 78,100 89,620 232, 740 72,580 65,480 78,740 68,500 80,340 1,796,340 Jan. 4 - 104,180 690,280 125,480 128,520 78,100 89,620 237,100 73,660 67,980 78,740 68,500 83,540 1,825,700 Jan. 11 105,460 703,480 127,720 133,360 78,100 89,620 238,300 73,660 67,980 82,740 68,500 85,140 1,854,060 Jan. 18 105,460 710,680 127,720 133,760 78,100 89,620 240,180 73,660 67,980 82,740 68,500 85,140 1,863,540 Jan. 25 106,500 710,680 133,200 133,760 81,740 89,620 240,181 73,860 67,980 82,740 68,500 86,900 1,875,661 Returned to Comptroller: Dec. 28 19,343 119,141 17,994 8,870 15,420 10,863 8,427 11,878 12,258 6,435 247,163 Jan.4 19,669 119,144 18,056 8,986 15,546 10,883 8,427 12,057 12,269 6,452 248,065 Jan. 11 20,036 122,688 18,838 9,427 15,710 11,030 7,339 8)457 10,095 12,393 12,490 6,579 255,082 Jan. 18 20,533 123,039 19,864 9,670 15,885 11,108 7,543 8,470 10,173 12,478 12,607 6,605 257,975 Jan. 25 20,586 123,273 20,724 9,910 16,045 11,359 7,862 10,272 12,648 12,757 6,672 261,004 Chargeable to Federal Reserve agent: Dec. 28 83,817 553,939 107,486 119,650 62,680 78,757 64,153 55,606 66,862 56,242 73,905 1,549,177 Jan.4 84,511 571,136 107,424 119,534 62,554 78,737 230,408 65,233 58,096 66,683 56,231 77,088 1,577,635 Jan. 11 85,424 580,792 108,882 123,933 62,390 78,590 230,961 65,203 57,885 70,347 56,010 78,561 1,598,978 Jan. 18 84,927 587,641 107,856 124,090 62,215 78,512 232,637 65,190 57,807 70,262 55,893 78,535 1,605,565 Jan. 25 85,914 587,407 112,476 123,850 65,695 78,261 232,319 64,964 57,708 70,092 55,743 80,228 1,614,657 In hands of Federal Reserve agent: Dec. 28 9,520 97,600 10,160 13,940 1,840 11,870 38,300 2,290 4,590 8,800 8,515 207,425 Jan. 4 7,040 96,600 10,160 13,940 3,420 12,220 38,420 4,495 7,090 8,800 9,115 211,300 Jan. 11 6,600 109,800 9,760 15,440 3,420 12,570 42,020 5,365 7,090 9,000 9,765 230,830 Jan. 18... 5,120 109,800 9,760 15,440 4,420 13,120 43,180 5,675 6,840 9,000 10,105 232,460 Jan. 25 5,160 109,800 15,240 15,440 4,420 14,440 41,980 6,625 6,840 10,220 10,870 241,035 Issued to Federal Reserve Bank, less amount returned to Federal Reserve agent for redemption: Dec. 28 74,297 456,339 97,326 105,710 60,840 66,887 187,780 61,863 51,016 58,062 47,727 73,905 1,341,752 Jan.4 77,471 474,536 97,264 105,594 59,134 66,517 191,988 60,738 51,006 57,883 47,116 77,088 1,366,335 Jan. 11 78,824 470,992 99,122 108,493 58,970 66,020 188,941 59,838 50,795 61,347 46,245 78,561 1,368,148 Jan. 18 , 79,807 477,841 98,096 108,650 57,795 65,392 189,457 59,515 50,967 61,262 45,788 78,535 1,373,105 Jan. 25 80,754 477,607 97,236 108,410 61,275 63,821 190,339 58,339 50,868 59,872 44,873 80,228 1,373,622 Collateral held as security for outstanding notes: Gold coins and certificates on hand- Dec. 28 32,530 165,420 4,220 14,955 3,603 2,513 13,102 14,080 250,423 Jan.4 35,730 180,417 4,220 17,410 3,603 13,102 14,080 269,951 Jan. 11 /.... 33.109 177,277 4,220 18,879 'l20 13,102 14,180 264,490 Jan. 18 33.110 184,277 4,220 21,107 3,604 13,102 14,580 274,000 Jan. 25 33,109 184,262 4,220 24,017 3,604 13,102 14,580 276,894 In gold redemption fund— Dec. 28 3,367 10,179 4,967 5,455 1,602 3,448 325 2,448 1,318 2,192 2,483 3,695 41,479 Jan.4 3,341 10,178 4,905 5,384 1,546 3,428 293 2,449 1,308 2,165 2,483 3,678 41,158 Jan. 11 4,315 9,775 4,843 5,814 1,478 3,280 189 2,418 2,097 2,090 2,467 3,551 42,317 Jan. 18 4,297 12,423 5,232 5,743 1,360 3,202 75 2,405 2,019 2,562 3,338 3,526 46,182 Jan. 25 4,245 12,205 5,167 5,593 1,305 2,951 427 2,379 1,920 2,509 2,427 4,458 45,586 Gold settlement fund, Federal Reserve Board— Dec. 28 2,000 75,000 47,759 35,000 30,000 42,770 124,075 27,405 17,500 39,860 8,474 40,106 489,949 Jan. 4 2,000 60,000 54,759 35,000 25,000 40,670 131,110 27,403 18,500 39,860 8,474 43,306 486,082 Jan. 11 5,000 40,000 54,039 35,000 25,000 43,170 129,167 28,903 20,500 42,860 7,474 46,406 477,519 Jan. 18 6,000 40,000 56,924 35,000 25,000 42,420 118,058 32,903 22,500 45,860 5,974 45,906 476,545 Jan. 25 7,000 40,000 55,529 35,000 25,000 41,020 120,087 32,503 22,500 45,860 5,174 41,666 471,339 Eligible paper, required minimum.1 — Dec. 28 36,400 205, 740 40,380 50,300 29,238 17,066 63,380 29,497 19,096 16,010 22,690 30,104 559,901 Jan. 4 36,400 223,941 33,380 47,800 32,588 18,816 60,585 29,497 18,096 15,858 22,079 30,104 569,144 Jan. 11 36,400 243,940 36,020 48,800 32,492 15,967 59,585 28,397 15,096 16,397 22,124 28,604 583,822 Jan. 18 36,400 241,141 31,720 46,800 31,435 16,166 71,324 24,207 13,346 12,840 21,896 29,103 576,378 Jan. 25 36,400 241,140 32,320 43,800 34,970 16,246 69,825 23,457 13,346 11,503 34,104 579,803 Total- Dec. 28 74,297 456,339 97,326 105,710 60,840 66,887 187,780 61,863 51,016 58,062 47,727 73,905 1,341,752 Jan.4 77,471 474,536 97,264 105,594 59,134 66,517 191,988 60,738 51,006 57,883 47,116 77,088 1,366,335 Jan. 11 78,824 470,992 99,122 108,493 58,970 66,020 188,941 59,838 50,795 61,347 46,245 78,561 1,368,148 Jan. 18 79,807 477,841 108,650 57,795 65,392 189,457 59,515 50,967 61,262 45,788 78,535 1,373,105 Jan. 25 80,754 477,607 97,236 108,410 61,275 63,821 190,339 58,339 50,868 59,872 44,873 80,228 1,373,622 1 For actual amounts see item "Paper delivered to Federal Reserve agent," on page 145. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FEDERAL RESERVE BULLETIN. 147 FEBRUARY 1,1918. Amounts of Federal Reserve notes received from and returned to other Federal Reserve Banks for redemption or credit hy each Federal Reserve Bank during the calendar year 1917. Boston. New York. Philadelphia. Cleveland. Received. Returned. Received. Returned. Received. Returned, Received. Returned. Boston $3,064,200 $9,552,800 $368,000 $634,700 $38,915 $352,900 New York $9,482,800 $3,018,450 11,169,902 5,818,700 1,250,300 1,725,105 Philadelphia.. 634,700 368,000 5,876,300 11,553,902 258,495 883,000 Cleveland 352,900 36,415 1,720,700 1,216,800 835,000 247,995 Richmond 263,900 50,500 3,680,305 993,100 798,005 336,670 101,100 145,200 Atlanta 193,200 135,400 3,116,410 1,236,100 311,000 151,400 72,680 285,900 Chicago 347,800 218,500 1,760,420 3,425,000 406,000 357,500 420,040 939,500 St. Louis 99,700 53,450 664,500 878,700 113,000 90,600 176,520 226,705 Minneapolis 142,200 16,000 844,375 390,500 122,000 17,000 77,030 53,000 Kansas City... 126,600 8,815 976,600 127,750 129,000 12,100 64,240 25,000 Dallas. 141,400 283,695 1,014,415 566,920 101,000 312,450 36,410 295,390 San Francisco. 156,500 30,200 2,656,490 383,415 163,000 31,370 32,595 67,955 Total. 11,941,700 4,219,425 25,374,715 30,324,987 14,515,907 8,010,485 2,528,325 4,999,655 Richmond. Atlanta. Chicago. St. Louis. Received. Returned. Received. Returned. Received. Returned. Received. Returned. Boston $47,500 $263,900 $135,400 $193,200 $232,500 $347,800 $53,450 $100,900 New York 999,100 3,600,750 1,236,500 3,030,710 3,425,000 1,698,920 922,200 661,150 Philadelphia.., 323,920 798,000 150,650 311,000 357,500 419,000 90,600 113,000 Cleveland 133,950 100,600 282,150 72,180 1,178,650 418,040 226,705 183,020 Richmond 862,450 268,520 312,000 128,610 122,080 34,250 Atlanta 278,520 862,450 747,500 223,550 820,630 424,450 Chicago 128,610 332,000 224,550 747,500 1,050,350 1,205,000 St. Louis 34,250 122,080 424,450 820,635 1,135,000 1,050,350 Minneapolis... 44,390 17,000 95,900 29,000 3,418,000 219,500 328,300 54,500 Kansas City... 34,240 18,990 212,550 68,950 2,652,500 145,550 2,298,000 211,150 Dallas 33,500 91,980 960,500 525,830 921,000 129,335 1,961,500 373,720 San Francisco. 12,700 184,485 69,245 50,450 700,000 225,460 148,950 57,540 Total. 2,070,680 6,392,235 4,654,345 6,117,975 15,079,650 5,006,115 8,022,765 3,418,680 Minneapolis. Kansas City. Dallas. San Francisco. Total. Received. Returned, Received. Returned, Received. Returned. Received. Returned. Received. Returned. Boston $15,000 $142,200 $8,815 $126,600 $283,695 $141,400 $29,025 $156,500 $4,276,500 $12,012,900 New York 390,500 792,325 127,750 929,160 599,420 964,265 393,580 2,560,440 29,997,052 24,799,975 Philadelphia.. 17,000 122,000 11,600 129,000 314,450 101,000 31,575 163,000 8,066,790 14,960,902 Cleveland 51,500 116,030 25,000 66,740 299,640 39,410 69,545 36,840 5,175,740 2,534,070 Richmond 17,000 44,390 18,990 34,240 89,330 33,750 185,015 14,200 6,450,175 2,083,430 Atlanta 29,000 95,900 68,950 217,550 521,830 950,600 50,990 66,850 6,210,710 4,650,150 Chicago 219,500 3,418,000 142,150 2,776,500 974,000 301,010 875,000 5,129,265 15,268,500 St. Louis 54,500 211,150 2,298,500 373,720 1,961,500 58,170 148,950 3,344,960 7,979,770 Minneapolis... 133,400 224,500 66,250 58,000 266,140 272,000 5,537,985 1,351,000 Kansas City... 215,000 133,400 754,820 310,950 319,635 58,100 7,783,185 1,118,755 Dallas 58,000 66,250 310,950 754,820 226,605 106,560 5,765,280 3,506,950 San Francisco. 260,000 249,295 52,100 337,765 104,060 225,145 4,355,640 1,843,080 Total. 1,327,000 5,508,090 1,110,855 7,895,375 3,536,050 5,760,020 1,931,290 4,456,440 92,093,282 92,109,482 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

148 FEDERAL RESERVE BULLETIN. FEBRUARY 1,1918. MEMBER BANK CONDITION STATEMENT. Principal resources and liabilities of member banks located in central reserve, reserve, and other selected cities, as at close of business on Fridays, Dec. 21, 1917, to Jan. 18, 1918. [In thousands of dollars; i. e., 000 omitted.] 1. TOTAL FOR ALL REPORTING BANKS. Boston. Y N o ew rk - . d P el h p i h la ia - . C la le n v d e . - m R o ic n h d - . la A n t t - a. Chicago. 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. F ci r s a c n o - . Total. Number of banks reporting: Dec. 21 67 614 Dec. 28...... 630 Jan. 4.. 64.0 Jan. 11 34 659 Jan. 18 67 662 United States securities owned: Dec. 21 28,839 456,934 28,459 118,109 38,190 34,270 60,557 33,540 10,166 29,074 24,705 53,204 916,047 Dec. 28.. 28.426 435,214 28,021 113,479 38,408 32,877 64,321 33,272 10,148 30,123 28,966 48,371 891,626 Jan. 4 29,623 506,112 30,484 113,954 48,329 33,584 75,572 44,673 10,927 33,795 30,081 56,645 1,013,779 Jan. 11 29,951 486,578 29,970 110,165 41,446 32,561 77,774 34,750 13,133 30,966 29,768 53,677 970,739 Jan. 18... 30,157 445,469 121,292 41,913 29,381 75,020 34,955 13,550 31,545 30,442 53,672 935, 794 Loans secured ~bj United States bonds and certificates: Dec. 21 44,696 232,269 25,177 22,125 10,904 2,673 34,547 14,590 1,266 2,329 4,856 5,750 401,182 Dec. 23 44,142 227,962 25,226 21,125 10,152 2,271 34,673 8,897 1,305 3,789 3,346 5,380 388,268 Jan. 4 42,583 268,572 21,982 20,797 11,294 2,304 34,890 8,544 1,248 2,607 3,431 5,580 423,832 Jan. 11 40,962 231,888 25,163 22,118 11,465 3,315 35,281 8,721 1,592 2,447 3,849 4,910 391,711 Jan.18. 37, 854 212, 908 25,286 22,555 12,404 2,530 42, 786 9,287 2,386 2,942 3,969 6,403 381,310 All other loans and investments: Dec. 21 663,297 4,090,644 543,165 886,419 300,149 263,372 1,249,502 337,603 212,497 438,919 167,329 471,222 9,624,118 Dec. 28 659,419 4,151,259 552,974 902,768 292,396 268,854 1,309,687 330,671 216,870 432,394 181,262 447,645 9,746,199 Jan. 4 663,403 4,041,880 579,992 900,485 320,517 268,840 1,324,186 342,051 214,578 449,573 192,800 469,992 9,768,297 Jan. 11 663,609 4,063,076 633,093 886,895 318,721 264,515 1,323,962 363,504 235,711 451,713 196,418 473,804 9,875,021 Jan. 18.... 671,024 4,082,896 626,612 311,416 259,449 1,322,694 386,370 231,821 448, 752196,526 464,701 9,897,249 Reserve with Federal Reserve Banks: Dec. 21 48,867 597,698 54,141 78,650 26,441 25,179 124,957 33,705 16,869 51,586 17,990 38,350 1,114,433 Dec. 28 56,722 631,694 58,616 82,478 26,613 23,363 132,996 32,885 17,927 41,262 19,207 38,060 1,161,823 Jan. 4 55,533 609,923 62,706 84,147 30,299 26,064 132,495 38,355 17,021 45,231 19,036 42,435 1,163,245 Jan. 11 55,882 635,806 64,736 85,938 30,324 24,635 137,123 38,113 19,269 46,874 20,176 43,513 1,202,389 Jan.18... 49,627 616,801 54,325 82,184 28, 095 25,079 134,684 34,967 18,384 42,648 19,895 40,585 1,147,274 Cash in vault: Dec. 21 22,250 129,850 20,242 34,239 17,150 13,636 63,322 12,413 8,150 18,565 11,435 25,876 377,128 Dec. 28 25,080 137,069 23,749 44,738 18,861 14,990 68,524 14,886 8,588 20,627 13,083 22,544 412,739 Jan. 4 23,681 135,192 23,218 49,964 21,786 15,885 73,447 15,897 8,681 19,995 14,422 24,142 426,310 Jan. 11 24,855 139,108 25,199 44,268 22,522 14,759 69,866 14,999 10,350 20,046 14,129 25,233 425,334 Jan. 18 22,645 129,628 23,158 45,454 16, 866 12, 950 64,631 14,116 9,940 18,290 13,406 23, 772 394, 856 Net demand deposits on which reserve is computed: Dec. 21 527,880 4,011,224 484,057 653,024 247,989 201,789 911,805 252,285 154,965 376,444 175,228 354,271 8,350,961 Dec. 28— 528,147 4,172,439 496,665 684,476 240,440 206,120 947,727 253,262 155,583 364,449 179,595 341.380 8,570,283 Jan. 4 535,830 4,231,809 551,599 684,471 258,180 206,493 981,751 273,459 157,466 373,676 194,560 359;747 8,809,041 Jan. 11 550,369 4,347,385 587,216 694,072 274,682 207,211 ,011,945 283,977 176,592 377,252 196,133 357,398 9,085,832 Jan.18 ... 553,402 4,249,491 585,835 688,540 246,029 201,927 997,142 278,716 173,652 379,398 193, 941353,866 8,901,939 Time deposits: Dec.21 77,136 286,283 18,905 199,110 41,276 66,743 74,259 37,537 43,068 17,712 87,969 1,230,078 Dec. 28 76,885 309,160 23,793 206,162 46,847 67,814 314,018 76,680 39,852 49,825 29,904 81,004 1,321,944 Jan. 4 75,758 329,441 18,326 202,364 54,720 68,610 329,589 67,652 40,127 44,092 24,056 88,853 1,343,588 Jan. 11 75,856 326,935 17,005 204,693 45,443 66,276 332,008 79,314 48,207 41,554 23,691 87,716 1,348,698 Jan.18 76,591 325r864 15,194 51,021 65,051 341,156 80,539 47,151 46,199 23,271 89,878 1,361,800 Government deposits: Dec.21 39,474 440,486 29,505 56,735 9,826 1,120 54, 366 7,352 16,550 8,786 6,229 15,277 685,706 Dec. 28..... 39,474 330, ~~' 29,529 56,957 12,615 869 64,844 7,102 14,242 8,633 6,653 19,836 591,578 Jan.4.. 41,077 38,205 60,727 14,835 2,290 78, 728 11,250 14,643 16,609 8,470 15,017 550,439 Jan. 11 39,730 141,211 35,629 58, 785 12, 350 2,167 76,863 11,257 10,822 7,372 14,453 419,018 Jan.18 30,484 151,011 25, 972 53,099 12,377 1,823 35,234 7,244 8,397 12,136 5,933 11,024 354,734 2. MEMBER BANKS IN CENTRAL RESERVE CITIES. I CENTRAL RESERVE CITIES. Number of banks reporting: Dec.21 105 Dec. 28 107 Jan.4 107 Jan. 11 108 Jan. 18 108 United States securities owned: Dec.21 411,628 26,592 21,300 459,520 Dec. 28 390,479 25,534 20,270 436,283 Jan.4 462,200 34,446 22,066 518,712 Jan. 11 443,925 35,043 21,774 500,742 Jan. 18 23,406 21,417 449; 52f Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FEBRUARY 1,1918. FEDERAL RESERVE BULLETIN. 149 Principal resources and liabilities of member banks located in central reserve, reserve, and other selected cities, as at close of business on Fridays, Dec. 21, 1917, to Jan. 18, 1918—Continued. [In thousands of dollars; i. e., 000 omitted.] 2. MEMBER BANKS IN CENTRAL RESERVE CITIES—Continued, Boston. Y N o e r w k. d P el h p i h la i - a. C la le n v d e . - m R o ic n h d - . la A n t t - a. Chicago. 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. F c S i r s a a c n n o - . Total. CENTRAL RESERVE CITIES— continued. Loans secured by United States bonds and certificates: Dec.21 207,799 20,869 13,335 242,003 Dec.28 203,821 20,466 7,647 231,934 Jan. 4 245,169 21,109 7,333 273,611 Jan. 11 209 551 21,410 7,369 238,330 Jan. 18. 190,540 27,544 7,592 225,676 All other loans and investments: Dec 21 3,693,660 822,114 256,444 4,772,218 Dec.28 3,753,299 825,948 243,654 4,822,901 Jan 4 3,626,186 852,758 247,832 4,726,776 Jan. 11 . 3,653,434 839,106 256,402 4,748,942 Jan. 18. 3.664, 950 845, 500 280,548 4,790,993 Reserve with Federal Reserve Bank: Dec. 21 563,194 89,384 26,587 679,165 Dec.28.. 592,840 93,804 25,473 712,117 Jan. 4 571 354 96,468 30,718 698,540 Jan. 11 602,146 98,040 29,745 729,931 Jan. 18. 579, 732 96,293 26,944 702,969 Cash in vault: Dec. 21....... 112,574 39,702 8,059 160,335 Dec. 28. . . 118,057 42,316 9,606 169,979 Jan. 4 116,547 46,444 9,880 172,871 Jan 11 120;677 44,887 8,996 174,560 Jan. 18 113,041 40,898 8,434 162,373 Net demand deposits on which reserve is computed: Dec. 21.. 3,627,807 651,245 187,435 4,466,457 Dec 28 3,792,664 657,591 189,280 4 63^/535 Jan. 4 3,850,703 691,798 202,066 4 T44.567 Jan 11 3,962,030 702,317 203,621 ^867,968 Jan. 18. 3,866,101 681,099 198,523 4,745,723 Time deposits: Dec 21 250 435 129,053 62,295 441,783 Dec 28 272'716 131,334 62,652 466,702 Jan. 4 285,448 135,318 53,287 474,053 Jan. 11...... 284,324 135,570 62,902 482,796 Jan 18 284,356 135, 021 62,521 481,898 Government deposits: Dec 21 418,971 39,232 5,979 464,182 Dec 28 310,196 48,478 5,978 364,652 Jan 4 227,279 58,631 9,929 295,839 Jan 11 125 035 51,685 9,713 186,433 Jan 18 137,911 24,994 6,265 169,170 3. MEMBER BANKS IN RESERVE CITIES. OTHER RESERVE CITIES. Number of banks reporting: Dec.21....... 14 16 33 46 39 27 33 8 13 67 29 41 Dec.28 14 18 33 48 40 26 36 10 14 68 32 40 377 Jan. 4 14 16 34 55 42 27 36 11 14 69 32 43 Jan. 11.... 14 16 35 55 43 26 48 13 14 68 33 43 408 Jan. 18 14 16 35 56 41 26 49 13 15 69 33 43 410 United States securities owned: Dee. 21 14,718 27,610 22,792 101,304 25,135 27,885 22,936 6,913 8,558 29,074 22,286 50,867 360,078 Dec.28 14,188 26,872 22,109 97,344 23,576 26,552 28,620 8,650 8,533 30,123 25,601 47,370 359,538 Jan. 4. 14,824 25,168 24,555 104,727 27,160 28,041 29,610 8,590 9,216 33,795 25,960 56,645 388,291 Jan. 11... 14,683 24,571 24,022 100,941 26,647 27,463 40,627 9,685 8,977 30,966 25,699 53.677 387,938 Jan, 18 ..... 14,763 23,316 23, 662 110,924 27,571 24,641 49,320 10,547 9,580 31,545 25,140 53,'672 404,661 Loans secured by U. S. bonds and certificates: Dec.21...... 37,205 15,088 24,474 20,569 8,340 2,514 10,886 922 1,134 2,329 4,801 5,184 133,448 Dec.28....... 36,753 14,832 24,587 19.341 8,280 •2,106 11.441 1,046 1,167 3,789 3,339 4,848 131,529 Jan. 4... 35,627 13,781 21,361 19;936 9,638 2,151 Hi 014 1,044 1,113 2,607 3,373 5,580 127,226 Jan. 11..... 34,139 12,473 24,572 21,339 9,632 3,149 13,356 1,140 1,349 2,447 3,720 4,910 132,226 Jan. 18...:..... 31,186 12,108 24,680 21,826 10,499 2,373 14, 720 1,357 2,147 2,942 3,908 67 403 134,129 All other loans and investments: Dec.21............ 495,583 254,555 482,867 778,542 218,172 226,206 364,048 51,629 179,392 438,919 144,653 457,480 4,092,046 Dec.28 .489,467 256,878 489,995 793,173 207,669 232,199 425,322 61,755 184,061 432,394 163,012 433,594 4,169,519 Jan. 4. ........488,976 252,943 519,065 833,033 241,916 234,536 409,886 75,832 182,032 449,573 162,033 469,992 4,319,817 Jan. 11................... 488,367 250,065 572,285 817,409 231,800 231,228 474,255 82,648 180,258 451,713 185,699 473,804 4,417,511 Jan. 18. 496,819 257, 834 564,188 824,441 233,890 233,741 466,536 81,638 177,134 448,752 166,032 464,701 4,415,706 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

150 FEDERAL RESERVE BULLETIN. FEBRUARY 1,1918. Principal resources and liabilities of member banks located in central reserve, reserve, and other selected cities, as at close of business on Fridays, Dec. 21, 1917, to Jan. 18, 1918—Continued. [In thousands of dollars; i. e., 000 omitted.] 3. MEMBER BANKS IN RESERVE CITIES—Continued. Boston. Y N o e r w k. d P el h p i h la i - a. C la le n v d e . - m R o ic n h d - . la A n t t - a. Chicago. 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. F S ra an n- Total. cisco. OTHER RESERVE CITIES—COn. Reserve with Federal Reserve Bank: Dec. 21 38,933 22,405 49,921 71,243 21,287 22,634 29,307 5,185 14,942 51,586 16,233 37,528 381,204 Dec.28 46,537 28,305 54,347 74,784 20,948 20,865 36,520 5,532 16,071 41,262 17,673 37,098 399,942 Jan. 4 , 44,993 26,346 58,552 79,285 24,848 23,849 32,635 6,422 15,182 45,231 16,751 42,435 416,529 Jan.ll 45,624 23,440 60,566 81,081 24,420 22,197 6,851 15,781 46,874 17,511 43,513 426,186 Jan. 18 39,432 26, 973 50, 625 77,117 22, 735 22,889 37/670 6;507 15,185 42, 648 17,424 40,585 399,790 Cash in vault: Dec.21 15,480 9,590 17,360 29,236 13,857 11,795 17,973 2,727 6,156 18,565 10,337 24,973 178,049 Dec.28 18,369 9,968 20,199 38,883 14,412 12,996 22,988 3,751 6,429 20,627 11,576 21,587 201,785 Jan.4. 16,620 9,987 19,765 45,181 17,352 14,136 23,749 4,705 6,305 19,995 12,218 24,142 214,155 Jan.ll 17,795 10,249 22,502 39,891 18,056 12,942 24,586 4,765 6,941 20,046 11,737 25,233 214,743 Jan. 18 16,344 9,275 20,492 40,741 13,297 11,608 23,286 4,384 6,519 18,290 11,587 23,772 199,595 Net demand deposits on which reserve is computed: Dec.21 411,431 233,300 428,433 585,077 181,701 175,299 230,677 40,987 133,025 376,444 155,823 341,521 3,298,718 Dec.28 408,104 231,437 447,577 612,311 173,697 179,898 262,819 46,254 135,188 364,449 163,643 328,573 3,353,950 Jan.4 411,583 228,675 496,647 626,032 195,615 184,458 258,741 56,869 137,115 373,676 168,099 359,747 3,497,257 Jan. 11 424,973 230,954 532,553 632,987 205,593 182,952 301,874 62,588 138,944 377,252 168,962 357,398 3,636,630 Jan. 18 ,. 432,347 228,593 531,952 627,264 181,790 181,739 308,218 62,877 136,577 379,398 167,232 353,866 3,591,853 Time deposits: Dec.21 28,127 21,107 13,762 175,702 31,061 52,732 122,460 8,661 25,608 43,068 15,274 87,503 625,065 Dec.28 28,433 21,249 13,470 183,701 32,052 53,754 154,804 7,644 27,441 49,825 25,650 80,553 678,576 Jan.4 27,417 27,105 13,110 186,947 42,230 54,534 165,351 11,552 27,553 44,092 18,814 88,853 707,558 Jan. 11.- 27,274 25,707 11,751 187,874 34,852 53,447 191,907 10,140 27,242 41,554 19,060 87,716 718,524 Jan.18 27,766 24,743 183,286 41,065 55,205 201,487 12,000 27,448 46,199 18,614 89,878 737,577 Government deposits: Dec.21 33,767 12,883 27,480 54,371 768 14,590 1,260 15,250 6,129 14,344 196,517 Dec.28 33,767 12,302 27,504 54,596 483 15,822 1,011 12,915 6,453 18,903 200,897 Jan.4. 35,453 13,019 36,721 59,918 9,706 1,912 19,548 1,208 13,230 16,609 8,270 15,017 230,611 Tan. 11 33,289 9,917 33, 639 57,989 8,407 1,865 25, 111 1,331 9,098 7,372 8,304 14,453 210,775 Ja^.18... 26,917 9,668 24,573 52,384 8;355 1,620 10,214 731 7,358 12,136 5,769 11,024 170,749 4. REPORTING MEMBER BANKS OUTSIDE RESERVE CITIES. COUNTRY BANXS. Number of banks reporting: Dec.21 22 24 11 24 13 4 143 Dec.28 22 24 11 25 13 4 146 Jan.4 21 24 11 20 14 4 140 Jan. 11 21 24 11 20 5 14 143 Jan.18 21 24 11 21 26 5 15 144 17. S. securities owned: Dec.21 14,121 17,696 5,667 16,805 13,055 6,385 11,029 5,327 1,608 2,419 2,337 96,449 Dec.28..... 14,238 17,863 5,912 16,135 14,832 6,325 10,167 4,352 1,615 3,365 1,001 95,805 Jan.4 14,799 18,744 5,929 9,227 21,169 5,543 11,516 14,017 1,711 4,121 106,776 Jan.ll 15,288 18,082 5,948 9,224 14,799 5,098 2,104 3,291 4,156 4,069 82,059 Jan. 18 15,394 17,455 4,736 10,368 14,342 4,740 2,294 2,991 3,990 5,302 81,612 Loans secured by U. S. bonds and certificates: Dec.21 7,491 703 1,556 2,564 159 2,792 333 132 55 566 25,733 Dec.28 7,389 9,309 639 1,784 1,872 165 2,766 204 138 7 532 24,805 Jan.4 6,956 9,622 621 861 1,656 153 2,767 167 135 58 22,996 Jan.ll 6,823 9,864 591 779 1,833 166 515 212 243 129 21,155 Jan.18 - 10,260 606 729 1 905 157 522 61 21,505 All other loans and investments: Dec.21 167,714 142,429 60,298 107,877 81,977 37,166 63,340 29,530 33,105 22,676 13,742 759,854 Dec.28 169,952 141,082 62,979 109,595 84,727 36,655 58,417 25,262 32,809 18,250 14,051 753,779 Jan.4 174,427 162,751 60,927 67,452 78,601 34,304 61,542 18,387 32,546 30,767 721,704 Jan. 11 177,242 159,577 60,828 69,486 86,921 33,287 10,601 24,454 55,453 30,719 708,568 Jan.18 174,205 160,117 62,424 70,547 77,526 25,708 10,658 24,184 54,687 30,494 690,550 Reserve with Federal Reserve Bank: Dec.21 9,934 12,099 4,220 7,407 5,154 2,545 6,266 1,933 1,927 1,757 54,064 Dec.28 10,185 10,549 4,269 7,694 5,665 2,498 2,672 1,880 1,856 1,534 962 49,764 Jan.4 10,540 12,223 4,154 4,862 5,451 2,215 3,392 1,215 1,839 2,285 48,176 Jan.ll ,. 10,258 10,220 4,170 4,857 5,904 2,438 755 1,517 3,488 2,665 46,272 Jan.18 10,195 10,096 3,700 5,067 5,360 2,190 721 1,516 3,199 2,471 43,515 Cash in vault: Dec.21.. 6,770 7,686 2,882 5,003 3,293 1,841 5,647 1,627 1,994 1,098 903 38,744 Dec.28 6,711 9,044 3,550 5,855 4,449 1,994 3,220 1,529 2,159 1,507 957 40,975 Jan.4.. 7,061 8,658 3,453 4,783 4,434 1,749 3,254 1,312 2,376 2,204 39,284 Jan. 11 7,060 8,182 2,697 4,377 4,466 1,817 393 1,238 3,409 2,392 36,031 Jan.18 6,301 7,312 2,666 4,713 3,569 1,342 447 1,298 3,421 1,819 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FEBRUARY 1,1918. FEDERAL BESEEVE BULLETIN. 151 Principal resources and liabilities of member banks located in central reserve, reserve, and other selected cities, as at close of business on Fridays, Dec. 21, 1917, to Jan. 18, 1918—Continued. [In thousands of dollars; i. e., 000 omitted.] 4. REPORTING MEMBER BANKS OUTSIDE RESERVE CITIES—Continued. t B o o n s . - Y N o e r w k. d P el h p i h la i - a. C la le n v d e . - m R o ic n h d - . la A n t t - a. c C a h g i o - . Lo S u t. is. M ap i o n l n i e s. - K C a i n ty sa . s Dallas. F c S i r s a a c n n o - . Total. COUNTRY BANKS—continued. Net demand deposits on which reserve is computed: j Dec. 21 .i116,449 150,117 55,624 67,947 66,288 26,490 29,883 23,863 21,940 19,405 12,750 590,756 Dec. 28.... 120,043 148,338 49,088 72,165 66,743 26,222 27,317 17,728 20,395 15,952 12,807 576,798 Jan. 4 1124,247 152,431 54,952 58,439 62,565 22,035 31,212 14,524 20,351 26,461 567,217 Jan. 11 125,396 154,401 54,863 61,085 69,089 24,259 7,754 17,768 39,648 27,171 581,234 Jan. 18 121,055 154,797 53,883 61,276 84,239 20,188 7,825 17,316 37,075 26, 709 564,363 Time deposits: Dec. 21 49,009 14,741 5,143 23,408 10,215 14,011 28,567 3,303 11,929 2,438 466 163,230 Dec. 28 48.452 15,195 10,323 22,461 14,795 14,060 27,880 6,384 12,411 4,254 451 176,666 Jan. 4 48,341 16,888 5,216 15,417 12,490 14,076 28,920 2,813 12,574 5,242 161,977 Jan. 11 48,582 16,904 5,254 16,819 10,591 12,829 4,531 6,272 20.965 4,631 147,378 Jan. 18 48,825 16, 765 5,308 16,599 9,956 4,648 6,018 19,703 4,657 142,325 Government deposits: Dec. 21 5,707 8,632 2,025 2,364 2,937 352 544 113 1,300 100 933 25, 007 Dec. 28 5,707 8,326 2,025 2,361 4,107 386 544 113 1,327 200 26,029 Jan. 4 5,624 8,290 1,484 809 5,129 378 549 113 1,413 200 23,989 Jan. 11.. 6,441 6, 259 1,990 796 3,943 302 67 213 1,724 75 21,810 Jan. 18 3,567 3,432 1,399 715 4,022 203 248 1,039 164 14,815 ! EARNINGS ON INVESTMENTS OF FEDERAL RESERVE BANKS. Average amounts of earning assets held by each Federal Reserve Bank during December, 1917, earnings from each class of earning assets, and annual rates of earnings on the basis of December, 1917, returns. Average balances for the month of the several classes of earning assets. Bills discounted, Banks. members and Bills bought in United States Municipal Federal Reserve open market. securities. warrants. Banks. Boston $40,241,452 $11,575,880 $2,871,363 $54,688,695 New York 312,385,180 108,492,558 15,533,136 $527,0)6 Philadelphia.. 33,346,433 21,297,307 7,654,381 39 277 Cleveland 43,104,912 26,174,885 24,263,463 1(7,582 93,553,842 Kichmond 24,327,250 13,495,471 3,482,681 41,305,402 Atlanta 15,324,143 7,041,676 4,954,860 322,05E 27,642,737 Chicago , 93,032,270 7,047,015 14,183,536 114,262,821 St. Louis 31,285,780 7,667,696 3,717,238 42,670,714 Minneapolis... 12,578.300 9,608,200 3,314,200 25,400 25,526,100 Kansas City... 29,236,175 2,375,596 10,703,735 «, 315,506 Dallas 7,617,515 15,117,229 5,674,826 "739," 742 29,149,312 San Francisco 21,674,389 20,544,014 4,329,492 46,54^,895 Total... 664,153,799 250,437,527 100,682,911 1,663,977 1,016,938,214 Earnings from— Calculated annual rates of earnings from— Bills dis- Bills dis- Banks. m c R F o e e e u a m d s n n e e b d t r r e v e a d r e l , s m i b n o B a o u r il k p g l e e s h n t t . U s S e t n t i c a e i u t t s e e r . i s d - M r c w a i n u p a n t a r s - i l . - Total. m c R F o e e e u a m d s n n e e b d t r r e e v a d r e l s , m i b n o B a o u r il p k g l e e h s n t t . U s S e t n t i c a e i u t t s e e r . i s d - M r c w a i n u p a n t a r s - i l . - Total. Banks. Banks. Per cent. Per cent. Per cent. Per cent. Per cent. Boston $216,605 $23,043 $7,324 $246,972 3.23 3.23 3.03 3.16 New York.... 816,793 318,848 38,297 $1,774 1,175,712 3.22 3.46 2.90 3.27 Philadelphia. 108,602 62,746 23,216 153 194,717 3.83 3.46 3.57 4.61 3.67 Cleveland 155,024 79,654 66,803 17 301,498 4.24 3.58 3.24 2.00 3.79 Bichmond 82,289 40,025 8,149 130,463 3.98 3.49 2.76 3.72 Atlanta 52,563 21,564 15,735 1,015 90,877 4.04 3.61 3.72 3.74 3.87 Chicago 322,190 21,018 33,747 376,955 4.08 3.51 2.80 3.88 St. Louis 104,654 22,924 8,507 136,085 3.93 3.52 2.69 3.75 Minneapolis.. 41,244 7,128 103 76,844 3.86 3.48 2.53 4.77 3.53 Kansas City.. 105,156 6,665 22,008 133,829 4.23 3.33 2.42 3.72 Dallas 27,500 45,395 14,842 "334 88,071 4.33 3.60 3.14 "5." 42 3.63 San Francisco 77,648 61,940 8,872 148,460 4.19 3.54 2.41 3.72 Total... 2,110,268 732,191 254,628 3,396 3,100,483 3.75 3.43 2.98 2.40 3.59 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

152 FEDEKAL BESERVE BULLETIN,, FEBRUARY 1,1918. GOLD IMPORTS AND EXPORTS. Gold imports and exports into and from the United States. [In thousands of dollars; i. e., 000 omitted.] Week ending- Total Total for since correspond- D 1 e 9 c 1 . 7 2 . 1, D 1 e 9 c 1 . 7 2 . 8, J 1 a 9 n 1 . 8 4 . , Ja 1 n 9 . 1 8 1 . 1, Ja 1 n 91 . 8 1 . 8, J 1 a 9 n 1 . 8 1 . , in d g 1 u 9 p r 1 e i 7 n r . i g od IMPORTS. Ore and base bullion 208 203 268 215 82 466 599 United States mint or assay office bars 2 Bullion, refined 161 529 ii 578 148 733 1.502 United States coin . .... .... 16 5 40 1,000 1,045 50,000 Foreign coin . „ . — ll 14 7 ' 14 4,976 Total........ 383 748 298 840 1,237 2,258 57,049 EXPOKTS. Domestic: 3 3 15 United States mint or assay office bars 1 658 Bullion, refined. . . . • • 877 19 2 6 8 148 Coin...' „ 1,688 568 866 286 977 1,696 13,442 Total 2,565 587 867 291 983 1,707 14,263 Foreign: Bullion, refined Coin 27 11 104 1 i 70 522 Total 27 11 104 1 1 70 522 Total exports 2,592 598 971 292 984 1,777 14,785 Excess of gold imports over exports since Jan. 1,1918, $481; excess of gold imports over exports since Aug. 1,1914, SI,050,785. DISCOUNT RATES. Discount rates of each Federal Reserve Bank approved by the Federal Reserve Board up to Jan. Si, 1918, Maturities. Discounts. Trade acceptances. Secured by U. S. certificates of indebtedness or Liberty Loan Federal Reserve Bank. Within 15 bonds. days, Agriculi c n m o b c l e a l l m u a n t d k b e i s r e n ' a r g l 1 d 6 a t y o s . 60 6 d 1 a t y o s . 90 l t i u v o p r v e a a - e l p s r t e a o 9 r n c 0 d k W d c a l i u y th d s i , i n n i n g 1 - 5 in I c d t l a u o y s 6 s i 0 v , e. in I 6 c d 1 l a u t y s o i s v , 9 e - 0 i . notes. member 16 to 90 banks' collateral notes. Boston New Yorki... t Philadelphia.. Cleveland 4 Richmond 4 Atlanta 4 Chicago 4 St. Loins 4 Minneapolis... 4 Kansas City... 4 Dallas. 4 San Francisco, 4 4 1 Rate of 3 to 4$ per cent for 1-day discounts in connection with the loan operations of the Government. NOTE l.—-Bate for acceptances purchased in open market, 3 to 4} per cent, except for Boston, Chicago, and Minneapolis, whose rates rang© from 3 to 5 per cent. NOTE 2.-—In case the 60-day trade acceptance rate is higher than the 15-day discount rate trade acceptances maturing within 15 days will be s taken at the lower rate. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

INDEX. Acceptances: Page. Federal Reserve notes-—Continued. page. Banks granted authority to accept up to 100 Amounts issued and in circulation, etc.—Con. per cent of capital and surplus 80 Chart showing 133 Distribution of 138 Interdistrict movement of. 147 Annual report of the Board submitted to Congress.. 69,79 Fiduciary powers granted to national banks during Argentina, exchange agreement with 76 the month 80 Business conditions throughout the several Federal Foreign exchange, Executive order of the President Reserve districts 111-129 regulating 75,81 Capital issues committee of the Board 73, 77 Gold imports and exports 152 Charters issued to national banks: Gold settlement fund, transactions under 105,106 During the year 89 Informal rulings of the Board: During the month. 92 Maturity of notes due on Sunday or legal Charts: holiday 108 Katie of total reserves to aggregate net deposit Eligibility of a note of an acceptance house or and Federal Reserve note liabilities 131 broker „ 108 Federal Reserve notes and gold cover held by Form of draft 109 Federal Reserve agents during year 1917 133 Basis for figuring interest on rediscount trans- Check clearing and collection system, operation of. 75,107 actions 109 Circular of the Treasury Department relating to Eligibility of a trade acceptance for redissale of war-savings certificates 87-89 count 109 Clerical costs, reducing of, in rediscounting paper.. 105 Law department: Discount operations of the Federal Reserve Banks. 134 Bills payable to the order of the drawee 110 Discount rates in effect 152 Member banks, condition of— 70,148-151 Earnings and expenses of the Federal Reserve Banks National banks: for the year 1917 99-104 Charters issued to— Earnings on investments of Federal Reserve Banks During the year 1917 ....... 89 for thefmonth 151 During the month of January. 92 Erratum, number of banks declaring dividends 76 Resources of, as shown by statement of the Exchange agreement with Argentina 76 comptroller 9o Executive order of the President regulating foreign President of the United States, executive order of, exchange - 75,81 regulating foreign exchange 81-86 Failures, commercial and banking, during the year. 89 Press statements issued by the War Trade Board,.. 87 Federal Reserve agents' fund, transactions under.. 106 Reserves, ratio of, to net deposit and Federal Re- Federal Reserve Banks: serve note liabilities 130 Earnings and expenses of, for year 1917 99-104 Chart showing 131 Earnings on investments of, during the month. 151 Resources and liabilities of Federal Reserve Resources and liabilities of 142-144 Banks » . 142 Federal Reserve Board: Review of the month 69-76 Annual report of, transmitted to Congress 69,79 State banks and trust companies admitted to the Committee of, to pass upon priorities and capisystem up to January 31, 1918 92-95 tal issues 73,77 Treasury certificates of indebtedness, issue of 71 Federal Reserve notes: War Finance Corporation, creating of 74,95-99 Accounts of Federal Reserve Banks and agents. 145 War-savings stamps, circular of the Treasury De- Amounts issued and in circulation and amounts partment relating to sale of 87 of gold and required paper collateral held by War Trade Board, statements issued by 87 Federal Reserve agents during 1917 132 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis