Federal Reserve Bulletin, 1918-09
FEDERAL RESERVE BULLETIN ISSUED BY THE FEDERAL RESERVE BOARD AT WASHINGTON SEPTEMBER, 1918 WASHINGTON GOVERNMENT PRINTING OFFICE 1918 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
FEDERAL RESERVE BOARD, W. P. G. HARDING, Governor. EX OPFICIO MEMBERS. , Vice Governor, WILLIAM G. MCADOO, ADOLPH C. MILLER. Secretary of the Treasury, Chairman. CHARLES S. HAMLIN. JOHN SKELTON WILLIAMS, Comptroller of the Currency. J. A. BRODERICK, Secretary, M. C. ELLIOTT, Counsel. L. 0. ADELSON, ] II. PARKER WILLIS, __ _ }Assistant Secretaries. Director Division of Analysis and Research. W. T. CHAPMAN,/ F. I. KENT, W. M. IMLAY, Fiscal Agent, Director Division of Foreign Exchange. M. JACOBSON, Statistician. II Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
SUBSCRIPTION PRICE OF BULLETIN. The Federal Reserve Bulletin is distributed without charge to member banks of the system and to the officers and directors of Federal Reserve Banks. In sending the Bulletin to others the Board feels that a subscription should be required, it has accordingly fixed a subscription price of $2 per annum. Single copies will be sold at 20 cents. Foreign postage should be added when it will be required. Remittances should b© 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 or 1916 are available. Bound copies ot the Bulletin for 1917 may be had at $5 per copy. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
TABLE OF CONTENTS. Page. Review of the month 801 Index of wholesale prices 810 Discount and interest rates prevailing in various cities 812 Retirement of Hon. Paul M. Warburg as member of the Federal Reserve Board 816 Change in the secretaryship of the Board 817 Election of directors of banks in Boston, New Orleans, and Memphis 817 Silver at §1.01} per ounce 818 Foreign banking development 818 Remittances and clearings under the Federal Reserve system 810 Reports of total bank transactions 821 Loans for relief of banks and individuals in crop-raising sections of the West and Southwest 828 Foreign-exchange situation 832 Foreign-exchange rates 836 Charts showing 841 Holdings by the banks of Treasury certificates of indebtedness 845 War-revenue legislation 847 Progress in curtailment of nonessentials 852 Development of the acceptance business during 1918 855 The savings banks and Liberty bonds 856 Commercial failures reported 856 Fiduciary powers granted to national banks 856 State banks and trust companies admitted to the system during the month 857 Charters issued to national banks 858 Banks granted authority to accept up to 100 per cent of capital and surplus 859 Lost and recovered Liberty bonds 859 Informal rulings of the Federal Reserve Board 862 Rulings of the Division of Foreign Exchange 864 Law department 867 Business conditions throughout the Federal Reserve districts 873 Gold settlement fund 892 Operation of the Federal Reserve clearing system.. 894 Discount operations of the Federal Reserve Banks 895 Resources and liabilities of the Federal Reserve Banks 902 Federal Reserve note accounts of Federal Reserve Banks and agents 905 Member bank condition statement 907 Earnings on investments of Federal Reserve Banks 913 Gold imports and exports 914 Discount rates in effect 914 Estimated stock of money in the United States 915 Abstract of condition of member banks 916 IV Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
FEDERAL RESERVE BULLETIN VOL. 4 SEPTEMBER 1, 1918. No. 9 REVIEW OF THE MONTH. A fifth offering of certificates was made on August 23. Data showing the distribution of The Secretary of the Treasury on August 1 subscriptions are not yet available. fixed the time of the next or The experience with the four issues of Treas- ^ iouTth I^erty *oan campaign. ury certificates of indebtedness shows that The campaign will begin Septhe certificates are being widely and liberally tember 28 and end October 19, subscriptions taken up by the banks in response to the policy to the loan closing on the latter date. The announced by the Secretary of the Treasury Secretary of the Treasury has stated that the some weeks ago. It is in further pursuit of rate of interest, as in the case of the last loan, that policy, as described in the FEDERAL will be 4J per cent. RESERVE BULLETIN for June, that the Secre- With the experience of the first three Liberty tary has also announced on August 16 the loans behind them, the banks and the managers offering of an indefinite amount of certificates of the various local organizations know much of indebtedness designed for purchase by taxbetter than ever before what they must do payers who wish to provide themselves with and by what methods they can hope to attain the means of settling their obligations to the greatest success. Wide as was the distribu- Government when the new revenue bill shall tion of the third Liberty loan, it is now even have been enacted and put into actual operamore essential than before that a large and tion. The new certificates, like the former active body of subscribers to these bonds shall issue, bear interest at the rate of 4 per cent be developed. per annum, dating from August 20, 1918, and The fourth issue of Treasury certificates are payable July 15, 1919. In other respects New issues of bein£ made in anticipation of they are similar to those which were issued Treasury certifi- the new Liberty loan, was during the first half of the year 1918. Precates- offered under date of August 6. liminary estimates are that from two to three The results, as in the case of its predecessors, billion dollars of these tax-paying certificates showed a substantial oversubscription, amountcan be disposed of, but the amount is obing in this case to $75,706,500. Nine of the viously dependent in some measure upon the twelve Federal Reserve districts oversubscribed provisions of the now war-revenue legislation, their quotas. The quotas (in round numbers) which has not yet boon enacted. and subscriptions by districts were as follows: The pressing need of a wise utilization of resources in very much larger Federal Kcserve Back. Quota. Su t b io sc n r . ip- Need of conser- degree than at present was vation. never so strongly marked as now, United Stales Treasmy. $4,581,000 Boston §43,300,000 | 49,509,000 at a time when the Government is embarking N Ph e i w la Y de o l r p k hia 1 3 0 5 9 , , 3 6 0 0 0 0 , , 0 0 0 0 0 0 i |2 3 0 8 7 , , 4 2 0 8 0 7 , , 0 0 0 0 0 0 upon a fiscal program far greater in scope than C R l i e c v h e m la o n n d d 4 1 5 7 , , 3 3 0 0 0 0 , , 0 0 0 0 0 0 i ! 5 1 2 4 , , 5 3 0 9 0 7 , , 0 0 0 0 0 0 anything that has before been attempted in the C A h tl i a ca n g ta o 1 7 4 0 , , 6 0 0 0 0 0 , , 0 0 0 0 0 0 I ! 8 1 7 4 , , 2 9 9 6 2 8 , , 5 5 0 0 0 0 United States. Discussion in Congress during M St i . n L n o ea u p is olis 2 1 0 7 , , 0 3 0 0 0 0 , , 0 0 0 0 0 0 i | 2 1 4 2 , , 0 2 5 6 6 0 , , 0 0 0 0 0 0 the past month has clearly indicated the neces- K Da a l n l s a a s s City 2 1 0 2 , , 0 0 0 0 0 0 , ,0 0 0 0 0 0 ! j 25 7 , , 1 5 2 7 6 9 , , 0 5 0 0 0 0 sity of obtaining the cooperation of all ele- San Francisco 35,300,000 I 37,750,000 ments in the community in order to carry out Total 500,000,000 575,706,500 the Government's program. Some of those S01 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
802 FEDEBAL RESEEVE BULLETIN". SEPTEMBER 1,1918. who have undertaken to estimate the surplus afforded by a statement made by a large and income of the country which could "be made representative concern which compiled actual available for the use of the Government, have data to show the amount of goods purchased tentatively reached the conclusion that there during the first five months of 1917 and the was last year $18,000,000,000 of margin be- same period of 1918. The outcome showed a tween production and consumption. The decrease in purchases of clothing, men's fur- Government now seeks to obtain the great nishing goods, various articles of women's total of $24,000,000,000, thus requiring, if these wearing apparel, shoes, household furnishings, early estimates were approximately correct, toilet articles, books, stationery, and other that $6,000,000,000 at least must be secured articles. There was a marked increase in men's either by (1) more intense production or by working clothing and in one or two obviously (2) increased economy in consumption. While luxurious lines of goods. every effort is being made to "speed up" "The company expresses the belief (and this production, the latter is the method to which opinion is presented simply as the estimate and we must mainly look for increase of total impression of this firm) that economy is being available financial resources, inasmuch as the practiced by well-to-do persons and those of country's productive powers are already being moderate means, while the increased compenapplied in so high a degree, while further addi- sation that is being received by large numbers tions thereto are rendered more difficult at a of people who have previously been somewhat time when less capital is available for new in- more restricted in purchasing capacity has vestment and when labor is being continuously made it possible for them to buy more freely drawn upon for the strengthening of our armies. now of the articles that might be considered There is still a very large field for the reduction luxuries. of consumption in practically every part of the " Discussing the question from the standcountry, and the degree of success to be attained point of geographical location, the company in the application of our fiscal and financial says that in the South, especially through the measures during the coming year will very cotton-growing States, business is better than largely depend upon the extent to which the ever before, and purchases of all classes of consumers and taxpayers of the country are goods are being very freely made. willing to make their resources actually "In the far Wast the civilian population, available for Government use through a process while not so liberal in expenditures as in the of genuine saving. South, is buying freely and in greater quan- Some progress in the curtailment of non- tities than in previous years. essential credit is already being "In the northern States of the Middle West Curtailment of noted in various Federal Re- buying is more conservative and more restricted "nonessentials/' serve districts. Still more im- to staples and necessities, but the volume is at portant is the apparent tendency on the part least equal to the average during the previous of consumers themselves to reduce their pur- one or two years. chases of articles which can not be consid- "In the East there is a rather marked ered requisite to their welfare or which can decrease in quantity of purchases, especially at least be reduced in amount without doing in so-called nonessentials; in fact, it is even serious harm to the condition of the con- quite noticeable in what are usually classed as sumer. Not long ago the Council of National necessities." Defense undertook a general investigation While there has been some decline in reserve for the purpose of ascertaining whether pur- percentages during the month The reserve chases by civilians in the United States had of August—from 58.7 per cent situation. been increasing or decreasing during the war to 56.4 per cent—cash holdings period. One result of the investigation was of Federal Reserve Banks have shown an in- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
SEPTEMBER 1,1918. FEDERAL RESERVE BULLETIN. 803 crease of $32,044,000, bringing them to 82,066,- Between these two dates the banks increased 962,000. The reduction of reserve percentages their total holdings of discounted paper hy is a natural incident of financial conditions 190.4 millions, the New York bank alone resuch as now confront the Nation, in which the porting an increase of 143.2 millions of disburden gradually assumed by the banks as a counted bills hekk Holdings of war paper, i. e. ; result of public financing increases from month member banks' notes secured by Government to month up to the time when certificates are war obligations and customers' paper similarly refunded into long-term bonds. Much has secured, increased 252.1 millions, the correbeen done toward the strengthening of the sponding increase for the New York bank alone reserves through the gradual accumulation of being 143.3 millions. It is evident, therefore, gold in the reserve institutions, and this process that the period under review witnessed net is steadily continuing, being aided in part by liquidation in some volume of commercial paper proper, largely by the New York bank. The the voluntary deposits of State member banks banks at Boston, Cleveland, Richmond, St. and in part hy the gradual transfer of gold Louis, and Kansas City report reduction of total received by the Treasury Department. There discounts on hand, though Richmond and Kanis undoubtedly a large quantity of gold still in sas City show increases in their holdings of war the vaults of banks and possibly to a slight paper. Since July 19, when the share of such extent in circulation in certain parts of the paper in the total discounts on hand was about country. This may be counted upon in some 50 per cent, this proportion has gone up to 61.2 measure to furnish a means of enlarging the per cent. For the New York bank an increase gold holdings of the Federal Reserve Banks as in this proportion from about 64 to 73.3 per cent time goes on. Meanwhile the best protection is noted. to their reserves will be furnished by the adoption of as conservative a policy as possible Acceptances on hand show an increase from in connection with long-period advances. The 205.9 to 236.5 millions, the New York and question of renewals of loans at member banks Cleveland banks reporting substantial additions for the purpose of carrying bonds is therefore to their holdingsof acceptance paper. Holdings one that should have constant attention. By of United States short-term obligations outside whatever means the result may be accom- of New York remain practically unchanged. plished, it is incumbent upon both individuals For the New York bank the increase of about 7 and banks to reduce their requests for credit to millions in short-term obligations includes an the minimum possible amounts, for the strength investment by the bank in 4 millions of 1-year of our banking situation is not dependent 2 per cent Treasury certificates to secure Fedmerely upon the quantity of gold the Federal eral Reserve bank note circulation. The con- Reserve Banks control, but is determined siderable reduction in United States long-term likewise in no small degree by the character of bond holdings is due largely to the redemption their other assets. by the Treasury on August 1 of over 8 millions of 1908-18 3 per cent bonds held by the Fed- Further increases in discount operations by eral Reserve Banks. the Federal Reserve Banks fol- °p^£T sLf lowin§the July23 and August During the period under review the banks7 ft gold reserves gradually increased from 1,975.4 to serve Banks. 6 Treasury certificate issues 2,003.1 millions, while their net deposits went up and considerable withdrawals from 1,566.6 to 1,594 millions. Federal Reserve of funds from New York by correspondent notes in actual circulation show an increase of banks in the interior of the country are indi- 203.8 millions and aggregated 2,032.8 millions cated by comparative weekly figures of prin- on August 23. The ratio of cash reserves to cipal earning assets for the period between July aggregate net deposit and Federal Reserve note 19 and August 23. liabilities declined from 59.8 to 56.7 per cent. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
804 FEDERAL BESEKVE BULLETIN. SEPTEMBER 1,1918. In the following table are shown the changes millions on August 9, followed by a slight debetween July 19 and August 23, 1918, in the crease to 551.9 millions on August 16. United total discounted and purchased bills held by States bonds other than circulation bonds each of the Federal Reserve Banks, also changes show a gradual reduction from 296.1 millions between the two dates in the holdings of other to 259.7 millions, while loans secured by classes of investments. United States war obligations show a decline for the period from 274 millions to 251.2 mil- [In thousands of dollars; i. e., 000 omitted.] lions. A similar development is shown for the Federal Bescrve Bank. July 19. Aug. 23. N cr e e t a s i e n . - I N cr e e t a s d e e . - Greater New York member banks, which report an increase of about 96 millions in certificates as against moderate reductions in United States Boston 110,856 93,854 17,002 New York 513,731 677,685 163,954 bonds and loans secured by United States war Philadelphia... 84,066 96,218 12,152 Cleveland 106,070 108,623 2,553 obligations. Richmond 60,982 62,155 1,173 A Ch tl i a ca n g ta o 2 3 0 7 9 , , 3 8 9 2 1 9 2 5 2 0 4 , , 0 3 8 4 7 3 1 1 2 4 , , 6 5 9 1 6 4 Aggregate holdings of United States securi- M St. in L n o e u a i p s olis 5 5 9 1 , . 6 8 4 0 3 9 4 6 9 4 , , 6 7 2 2 2 3 12,914 10,021 ties, exclusive of circulation bonds, and of loans D K a a l n la sa s s City 6 3 8 3 ; , 9 4 8 0 9 2 6 4 2 3 , , 6 5 1 5 8 1 10,149 "*6," 371 secured by United States war obligations show San Francisco. 72,510 96,842 24,332 an increase during the five-week period from Total I 1,409,278 1,630,321 221,043 1,778.3 millions to 2,003 millions, or of 12.7 United States long-term sccuri- j ties i 40,259 30,624 9,635 per cent. For the same period the central United States short-term securities , 16,358 23,479 7,121 reserve city banks show an increase in this Other earning assets 62 36 composite item from 1,013.5 millions to 1,062.8 Total investments held.. j 1.465.! 1,684,486 218,493 millions, or of 4.8 per cent, and the Greater Member bank reports from about 100 leading New York banks an increase from 834.6 milcities showing principal assets lions to 885.2 millions, or of over 6 per cent. member*banks. and liabilities for each week be- Aggregate loans and investments, exclusive tween July 12 and August 16 of fixed investments, of all reporting banks, indicate a relatively moderate increase of 243.5 rose from 12,556.9 millions to 13,002.7 milmillions in the banks' holdings of Treasury cer- lions, while the combined share of United tificates, notwithstanding the issue during the States war obligations and of loans secured by period of over 1,900 millions of Treasury cer- such obligations in the totals just given rose tificates. Largest holdings of these certificates from 14.2 to 15.4 per cent. For the central are reported under date of August 9, viz, 1,017.3 reserve city banks a rise from 16.3 to 16.7 per millions, while the smallest holdings of 527.5 cent is shown, and for the Greater New York millions are shown for July 19. Holdings of banks a rise from 17 to 17.7 per cent- United States bonds other than circulation Government deposits of all reporting banks bonds, i. e., largely Liberty bonds, show some declined from 815.9 millions on July 12 to 602.8 gain for the week ending July 19 and a slow but millions the following week. During the subsesteady fall for the following weeks, the August quent weeks considerable gains are noted, the 19 total, 554.5 millions, being about 3.2 millions maximum for the period, 964.1 millions, being below the corresponding July 12 total. Loans shown for August 9. Since then these desecured by United States war bonds and cer- posits declined to 943.1 millions on August 16. tificates from 485 millions on July 12 increased For the banks in the central reserve cities a to 501.7 millions on August 2 and declined to similar decline from. 508.1 millions on July 12 469.4 millions about the middle of August. to 348.8 millions on July 19 is seen, with a Holdings by the central reserve city banks of maximum amount for the period of 651.5 mil- Treasury certificates show a sharp decline from lions on August 9 and a decrease to 546.1 mil- 443.4 millions on July 12 to 293.3 millions the lions on August 16. Net demand deposits show following week and a gradual increase to 573.8 a decline from 9,030 millions on July 12 to Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
SiSJfTKMBBil 1, 1.9; 8. FEDERAL RESERVE BULLETIN. 805 8,876.5 millions on Julj 26 and a subsequent sede the call loan as a form of investment for rise to 9.100.5 millions on August 16. Time fluid banking resources. On August 23 public deposits increased from 1,410 millions to 1,482.9 announcement was made by a leading New millions on August 9, the following week wit- York banking house to the effect that it would nessing a reduction to 1,451 millions. At the lend money on call to those who were able central reserve city banks a like downward to present eligible acceptances as collateral. course of net demand deposits during the sec- The rate on such loans was announced at 4J ond part of July is noted, followed by a net in- per cent at the outset, it being the policy of the crease of about 100 millions during August, the firm to fix the rate in relation to the discount August 16 total of 4,889.2 millions being, how-, rate of the Federal Reserve Bank of New York. ever, slightly below the July 12 total. In so far as this action tends in the direction of But little change is shown in the figures of the establishment of an acceptance market reserves (all with the Federal Reserve Banks), after the European model, it promises interthe August 16 total being 15.2 millions in ex- esting developments. Since the appearance of cess of the July 12 figure.- Cash in vault of all a very strong demand on the part of the Govreporting banks decreased from 371.4 millions ernment for available current funds the ability to 349.9 millions. For the central reserve city to distribute acceptances rapidly has declined, banks both reserve and cash figures of August and this again has tended to operate unfavor- 16 are shown below those of July 12. ably to their fulfillment oi the purposes which During the period under review the ratio of the acceptance market had been intended to combined reserve and cash to total net, in- serve. As acceptances become more and more cluding Government deposits, declined from readily marketable, they will be increasingly 14.7 to 14.4 per cent for all reporting banks attractive to the smaller banks of the country and from 15.7 to 14.9 per cent for the banks in when possessed of reserve funds which the}7 the central reserve cities. Excess reserves, in desire to invest in a way that will make them the calculation of which no account is taken of immediately available without question when- Government deposits, reached a maximum of ever needed. The practice of lending upon 102.8 millions on July 19, the total for August eligible acceptances at call undoubtedly may 16 of 77.2 millions being 7.4 millions in excess assist in popularizing the acceptance as a form of the July 12 figure. For the central reserve of investment for such banks. city banks a different development is shown, Two significant developments relating to the August 16 figures of excess reserves, 30.2 mil- use of acceptances have oclions, being 29.4 millions below the July 12 culTed during the past month. total. The New York Clearing House During the past year difficulty has been has adopted a resolution, elsewhere published in found in the development of a this issue, as a result of which acceptances will Call loans on wide market for acceptances, be passed through the clearinghouse and charged acceptances. due to the fact that those to the accounts of their acceptors at the banks houses which purchased them were obliged at which they are payable upon the date of their steadily to dispose of them, inasmuch as it maturity precisely as if they were checks. A was not practicable to borrow at current rates conference of bankers on August 14, in a seswith the acceptances as collateral. Such houses sion at the National Bank of Commerce at were thus obliged to keep their holdings of ac- New York, further took action designed to ceptances down to a comparatively small figure, establish regular methods for the reimburseand the situation has militated against the at- ment of acceptances by those in whose favor tainment of that degree of marketability for they were made. The conference decided that acceptance paper which had been desired by such reimbursement should be effected either those who believed that it would gradually super- by (a) the deposit of clearing-house funds one 78653—IS- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
806 FEDERAL RESERVE BULLETIN". SEPTEMBER 1,1918, day prior to maturity, or (6) the deposit of cash paid by members to their depositors. In or checks on the Federal Reserve Bank of communications to Federal Reserve Banks the New York on the day of maturity, or (c) Board has accordingly urged that an effort be debit to the account of the bank's client on made to bring about an understanding conthe day of maturity against funds cleared on cerning rates on deposits without, however, or prior to such date. involving any simultaneous change in discount- As things now stand there is, therefore, a rates. It has been suggested that perhaps regular and recognized basis for the collection the entire question might be reopened by recof acceptances through the clearing house and oirimending to clearing houses that they confor the reimbursement of accepting banks by sider the schedule of deposit rates now agreed their clients. In connection with the latter upon by them as the maximum. The logical point it is worthy of note that the situation result of such a step would be the further agreeas to the use of Federal Reserve drafts has ment that no increase in deposit rates shall ocbeen such as to require that commercial houses cur until in each case favorable action by the not situated in New York should either keep clearing house has been secured, after previous accounts with banks in New York on which consultation with the Board. It has been recogthey can draw, buy New York exchange, or nized as of great importance to find some unielse purchase Federal Reserve drafts. form, basis for controlling deposit rates without In order to facilitate the use of these drafts destroying liberty of action existing in each the Board on August 12 notified all Federal Re- district and without preventing the adjustserve Banks that the limit of drawings through ment of local discount rates to conform to the Federal Reserve exchange drafts will hencefor- conditions and requirements existing in the ward be increased from $250 to $5,000, while several districts. Wherever possible it has Federal Reserve Banks paying the exchange been the desire of the Board to bring about a drafts of other Federal Reserve Banks would be standardization of rates in each district related permitted to deduct the amount paid from the to the rates of the local Federal Reserve Bank. total credits reported in the gold settlement It has also sought to secure through cooperation for the day. In this same connection, the on the part of State banks harmonious working Federal Reserve Banks were notified that arrangements which would tend to prevent the Board deems it desirable that all reserve any disposition to attempt to control or banks give immediate credit for clearing-house divert business through the offering of higher items on the day such items are received from rates of interest to those who might happen other Federal Reserve Banks, the balances so to have funds available for deposit which credited to be included in the credit balances could be turned in one direction or another in reported for settlement through the gold fund consequence of more advantageous terms. clearing. These changes constitute a valuable A further development of the Government's and desirable step toward the attainment of a system of emergency relief to general system of clearance through Federal Loans for relief individuals in agricultural reof individuals. Reserve Banks. gions who are unable to ob- Further effort has been made during the tain banking accommodation on account of past few weeks to extend the losses was taken on August 15, when the on I n d t e e p r o e s s i t t s. rates s , t and j ard v i zat ,- i on o j f ? i • n t . e rest , rat , es Secretary of the Treasury announced that the paid by banks to their de- War Finance Corporation would make direct positors, a beginning in which had already advances to individuals, firms, and corporabeen accomplished. The Board's action in the tions whose principal business is the raising past has been directed to the establishing of of live stock, including cattle, sheep, and hogs. some definite relationship between discount Further to facilitate the plan of furnishing rates at Federal Reserve Banks and the rates relief to needy farmers, the War Finance Cor- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
SEPTEMBER 1,1918. FEDERAL RESERVE BULLETIN. 807 poration moreover altered the rate of interest purposes of importance in connection with the from 6 per cent to 5 per cent upon the short- prosecution of the war and only in cases where term loans which it is now making under sec- the exporter certifies that the silver to be extion 9 of the war finance act to banks located ported has been purchased at a price which in the agricultural districts which require does not directly or indirectly exceed $1.01} per funds for the purpose of assisting borrowers ounce one thousand fine. This quotation applies who have suffered crop losses. at the point where silver is refined in. the case of In order to provide for the making of the silver refined ii) the United States or at the point proposed direct loans to cattlemen, the War of importation in the case of imported silver. Finance Corporation has established agencies at The action thus taken represents a change Kansas City and Dallas, for the purpose of pass- in the policy of the Board in respect to the ing upon such applications as may be submitted exportation of silver. Until very recently by borrowers who wish to take advantage of the Board has deemed it wise to avoid interthe opportunity to obtain Government assist- ference with the exportation of silver. As ance in their financing. During the month stated in the issue of the FEDERAL RESERVE also the Department of Agriculture has an- BULLETIN for June 1918 (p. 501), the gross nounced that arrangements have been made amount of licenses granted for the exporby it for the purpose of advancing limited tation of silver from the beginning of the embargo policy up to May 24 was approxisums to individuals who had suffered from mately $155,237,725, while in addition silver successive crop losses. These advances are included in licenses for the alternative shipto be made through the Federal land banks. ment of silver or currency amounted to $5,- Two new agencies have thus been added to 328,110, a gross total of $160,565,835. From those already engaged in rediscounting and the date when these figures were issued to advancing liquid funds for the purpose of August 23, there have been granted licenses facilitating the operations of persons engaged covering the exportation of approximately in business, commerce, or agriculture. $105,390,285 of silver in the form of coin or Under the authority of the act pf Congress bullion, making a grand total in round numapproved April 13/1918, silver bers of 1265,956,120 for the whole period of Policy as to sil- hag been heretofore sold hj the embargo to date. It has been apparent ver. the Secretary of the Treasury for some time past that applications for the at a price which will permit the Department exportation of silver were increasing and that to recoin new silver purchased at the price of the amounts licensed for exportation would $1 per fine ounce into silver dollars without grow greater as the difficulty of obtaining gold loss. On August 10, however, it was anor securing exchange at satisfactory rates innounced that in order to provide for the varicreased. The new policy will confine the exous items of expense involved in the operation portation of silver to those necessary purof withdrawing silver dollars and recoining new poses which result from the importation of bullion it had been necessary to fix the price goods requisite for civil or military requireon the silver hereafter sold at $1.01} per fine ments. ounce. The Department further made it a Within the month ending August 10 the net condition of sale that the purchaser should outward movement of gold was not pay a higher price for silver in markets Movement of $4376000, as compared with a ; ; other than those of the United States. Up g° * net inward movement of $12,to the present time the Federal Reserve Board 281,000 for the period from June 15 to July has freely granted licenses for the export of 10. Gold imports for the month, amounting silver. In order, however, to conserve the to $2,522,000 came largely from Canada and use of silver, export licenses for silver will Mexico, while gold exports, totaling $6,898,000, hereafter be granted only for civil or military were consigned chiefly to Mexico and Chile. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
80cS FEDERAL RESERVE BULLETIN. 1, 1918. The gain in the country's stock of gold since that such obligations have assumed a trade ac- August 1, 1914, was $1,074,007,000, as may ceptance form does not necessarily render them be seen from the following exhibit: desirable paper. . The Board, it is true, has established and still maintains a preferential [000 omitted.] rate of rediscount in favor of trade acceptances, but this rate presupposes that paper Excess of Imports. Exports. imports which, receives the advantage of it represents over exports. a superior type of trade paper. If it does not do so, the reason for the grant of the prefer- Aug. 1 to Dec. 31, 1914 S23,253 $104,972 i SSI,719 Jan. 1 to Dec. 31, 1915 451,955 31,426 420,529 ential rate disappears. It must not be forgot- Jan. 1 to Dee. 31, 1916 685,745 155,793 529,952 Jan. 1 to Dec. 31, 1917 553,713 372,171 181.542 ten that at the bottom of this whole question of Jan. I to Am;. 10, 1918 52,971 29,268 23; 703 commercial discounts is the character of the 1,707,637 693,630 1,074,007 credit upon which the paper is based, and that 1 Excess of exports over imports. the external form of the paper can not bestow Growth of interest in the use of trade ac- the quality of liquidity unless it is inherent in ceptances and the increasing the transaction itself. The trade ac- development which they are at- The question of interpreting the meaning of ceptance situation. . . 1 . . ,. -, , section 5200, Revised Stattaming in various parts of the Advanees under , •. £ country has brought to the Board many ques- section 5200. utes> lias for some tlme Past tions of definition and analysis in connection been under consideration by with this class of paper. Probably the most the Board in connection with the use of the frequent inquiry which comes to the attention trade acceptance. Specifically the question of the Board from time to time is the question most frequently raised has been whether or whether paper representing a given kind of not advances on trade acceptances were subject to the so-called "10 per cent limitation" transaction is or is not a "trade acceptance." In of the Revised Statutes whereby an advance answering such inquiries the Board necessarily made to any one person, firm, or corporation feels obliged to make rulings based upon the must not exceed 10 per cent of the bank's legal and administrative status of the trade capital and surplus. It has been ruled that the acceptance as inferable from the law and as limitation imposed, by section 5200 does not laid down in the Board's own regulations. The apply to the discount of trade acceptances. result is unavoidably to characterize as "trade A bank, for example, might purchase $100,000 acceptances" many items of paper which majr of trade acceptances bearing a given name, or may not be desirable as investments for discount them with the Federal Reserve Bank, Federal 'Reserve Banks. It must be recognized and immediately purchase a like amount of that even among those which are technically paper bearing the same name in addition. It or legally "eligible" there may be many which would, however, be a serious error to conclude would not be desirable as investments or as a from this that it would bo good policy to make basis for rediscount. In promoting the use of advances on such paper because it was techthe trade acceptance it should be borne in nically eligible, still less would it imply that mind that the paper whose development and $ Federal Reserve Bank should, as a matter of growth is desired by the Federal Reserve system course, be expected to make such advances. is fundamentally that which represents liquid Each transaction is a matter for the exercise commercial transactions which provide their of banking judgment, and at this time, parown means of settlement at maturity. There ticularly, every effort should be made to apply may in individual cases be reasons for putting rigid tests to applications for credit lest a type commercial obligations into the form of trade of paper that has great possibilities when wisely acceptances regardless of the liquid character used should become a subtle instrument of of the paper thus produced. The mere fact credit over-expansion. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
1, 1.018. FEDERAL RESERVE BULLETIN. 809 Elsewhere in this issue of the BULLETIN to obtain from their member banks reports there is given further informa- showing the total number of checks paid by Reports of busi- ,- -Y~. ,. , , -i such banks for other banks. Subsequently ,.,. tion with reference to the arrangements were entered into with the clearness conditions. .... , ing house section of the American Bankers7 Board's work m the more sys- Association whereby the somewhat similar tematic survey and study of business condifigures which have been compiled by this sections , including three dis tine t topics—(1) tion in the past will be consolidated with wholesale prices, (2) interest and discount those obtained by the Board. There is pubrates, (3) total business transactions at clearing lished elsewhere in this issue an account of house banks. It is hoped that by October 1 the work heretofore done by the clearing index numbers representing the progressive house section, together with a brief digest development of these three factors can be of the statistics published by that section begun. The Board has undertaken a general since the system of statistics referred to was program of investigation of business conditions first inaugurated. The Board also publishes and will extend these plans to cover methodical its own returns for the weeks ending August analysis of factors affecting the internal situa- 15, 21, and 28. This new series of figures tion of Federal Reserve and member banks. should afford to the community a far better Included in this work will be a careful statisand more accurate knowledge of the actual tical study of acceptances, interest and disvolume of banking business at important count, rates, foreign exchange, reserve perclearing house centers than has been afforded centages, developments of banking legislation, by the statistics showing clearings alone. both national and State, and other related Clearing house returns have been too freely subjects. The several Federal Reserve Banks used as giving an accurate indication of the will cooperate with the Board by obtaining real trend and volume of business at given local data bearing upon the subjects under points from year to year. Undoubtedly they investigation, so that in time there will be have their value, but the utility of the figures developed in the office of each Federal Reserve for total operations, to be compiled under the agent a department of inquiry under the genmethod above outlined, will be unquestioneral supervision and direction of the Board. ably greater both as a test of the volume of In furtherance of this undertaking a new feature of the Board's statis- business actually transacted at one place as Figures for total . ^ . j . h compared with another and as a comparison bank operations. ., te. of the activity of business at one date with that urated during the month oi existing at an earlier or later period. The August in the attempt to obtain trustworthy Board hopes to enlarge, strengthen, and and reliable figures showing the total volume broaden its figures of this kind and to employ of banking business at the various clearing them in the further development of its system house points. On August 1 the Board transof business indexes. mitted to all Federal Reserve Agents a letter in which it requested them to obtain from Hon. Paul M. Warburg's membership in the the managers of each local clearing house Federal Reserve Board ceased Retirement of situated within their districts the total amount on August 9, upon the expira- Mr. Warburg. of chocks paid by each member of the clearing tion of the term for which he was house which was also a member of the Federal appointed four years ago. At the time of his Reserve system and so far as possible to obtain retirement a statement of correspondence parallel data from, institutions not members of passing between the President and Mr. Warburg the Federal Reserve system but participating on the subject was given out and is printed in local clearing house operations. The clear- elsewhere in this issue. The Board, in resoluing house managers were furthermore asked Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
810 FEDERAL RESERVE BULLETIN SKPTEMBIBR 1,1918. tions' adopted on August 9, has placed on valuable assistance to the Board in grasping record the following expression of its apprecia- and solving many of the momentous financial tion of Mr. Warburg's service: problems, both domestic and international, "The members of the Board, now that the which have come before it,'' term of their colleague, Hon. Paul M. Warburg, The President on August 13 redesignated is about to expire, desire to place upon record Hon. W. P. G. Harding as this evidence of their high appreciation of the ganizaUon. governor oi the federal Reimportant and valuable services which have serve Board. The vacancy in been rendered by him in the development and the secretaryship of the Board due to the administration of the Federal Reserve system. retirement of Mr. II. Parker Willis was filled They wish to express also their sense of personal by the election on August 13 of Mr. J. A. loss in being deprived of their daily association Broderick, who has been chief examiner and with him and their feeling that his retirement head of the Board's division of audit and from the Board is a serious loss to the public examination since the organization of the service. Federal Reserve Board. A sketch of Mr. "Mr. Warburg's thorough knowledge of Broderick's service in the banking field is national and international finance, his in- published elsewhere in this issue of the FEDERAL defatigable and untiring industry, his masterly RESERVE BULLETIN. conception and firm grasp of the many important banking problems which have come before Wholesale Prices. the Board, have placed its members under a lasting obligation to him. Arrangements have recently been completed "The important amendments to the Federal with the United States Bureau of Labor Sta- Reserve Act relating to reserves which have tistics whereby its regular index number of enabled the system to meet so fully all the wholesale prices will be placed at the disposal requirements which have been made upon it of the Board for use each month in the FEDduring the most critical period of the Nation's ERAL RESERVE BULLETIN. This is one of the financial history, and the extension of the use most comprehensive of American series, emof bankers7 and trade acceptances, are among bracing at the present time some 300 commodthe many important developments which have ities. The plan insures that the number will been due in a great degree to his foresight and reflect accurately such changes as may occur untiring efforts. in the existing price structure. Both raw "The Board has received from him also, materials and manufactured products are inespecially since the entrance of our country cluded. The quotations are taken as far as into the war, very valuable suggestions regard- possible for primary markets. Standard trade ing the fiscal relations of the banks to the journals and data supplied by other govern- Government, foreign exchange, regulation of mental bodies are supplemented by private gold exports, control of capital issues, and sources of information for certain of the restriction of nonessential credits. commodities. "His services can be appreciated best by The number is constructed from what is those who have had the near view of colleagues. technically known as an aggregate of actual The sense of public duty, loyally and ably prices. The current price quotations are mulperformed, is after all the chief reward of tiplied by the quantities of the respective official life, and whatever the future may have commodities entering into exchange in the in store for Mr. Warburg he can feel that he census year 1909, the last year for which the leaves office with the admiration, confidence, data required for such a system of formal and sincere esteem of his colleagues, and with weighting could be estimated. The resulting the satisfaction of knowing that he has given products are then added, and the total is Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
SEPTEMBER 1,1918. FEDERAL BESERVE BULLETIN. 811 divided by the sum of the products obtained products. On this ground index numbers of by multiplying the average commodity prices wholesale prices have often been confined to the prevailing in the base period (which is taken as first-named class of goods. The present method the year 1913) by the same 1909 weights for the of presentation, however, will have the advanseveral commodities. Thus a relative figure is tage of showing movements in the prices of the secured, expressing the present price level as a particular classes of commodities enumerated as percentage of that prevailing in 1913. A di- well as in the general level of prices, and hence rect comparison of present conditions with make possible a more intelligent appraisal of the those existing immediately prior to the out- entire price situation. The Bureau has kindly break of the war is obtained. Moreover, due consented to place at the disposal of the Board to the technique of construction employed, such of the data it employs as will be required in the base may readily be shifted if it be desired the construction of the index numbers for the to institute a comparison with prices existing several groups of commodities enumerated during periods other than the base period. above. The technical method of construction Complete recomputation of the number is un- is the same as that employed by the Bureau in necessary. A full description of the methods the case of the final number, as described above. employed in the construction of the index In addition to these index numbers, it is number is contained in Bulletin No. 181 of the planned to publish also actual and relative United States Bureau of Labor Statistics, figures for a selected list of the more importantpages 239 to 256. basic commodities. Current quotations wili Price fluctuations, however, present extreme again be expressed as percentages of average diversity. The prices of some commodities prices prevailing in 1913. The commodities rise, the prices of others remain constant, while included will be chosen from the raw materials the prices of still others fall. Hence it is desir- and producers' groups mentioned above. Afable to analyze more fully changes in prices fording as they do direct evidence of the price which have occurred. This has led to the movements of individual basic commodities, practice of grouping the commodities which are these data should prove a valuable adjunct to represented in the final index number, and of the index numbers showing the price movecalculating separate index numbers, for the ments of the several groups of commodities just several groups. Besides its final number the mentioned. Bureau of Labor Statistics publishes separate The following correspondence between Govnumbers for nine particular classes of commodi- ernor Harding and Commissioner Meeker will ties, viz, farm products, foodstuffs, cloths and explain the basis for the Board's price index clothing, fuel and lighting, metals and metal material: products, lumber and building materials, drugs AUGUST 16, 1918. and chemicals, house-furnishing goods, and a DEAR SIR: The Federal Reserve Board has in contemmiscellaneous class. This grouping, while plation the preparation of a series of indexes of general business conditions, including an index number of wholeilluminating for certain purposes, is however sale prices. It has been noted that the Bureau of Labor not the most satisfactory for the study of busi- Statistics has recently begun the preparation monthly ness conditions. Accordingly a regrouping of its regular wholesale prices index number. In order into raw materials, composed of farm, animal, to avoid duplication of work along the same lines by the Federal Reserve Board, it would be desirable to have for forest and mineral products, producers' goods, use in our BULLETIN the monthly index figures computed such as steel rails, copper wire and cotton }rarn, by your office, and respectful inquiry is made whether and consumers' goods, such as flour and beef, figures for the month immediately preceding can be had was mado. Each of the classes enumerated on or about the 20th of each month for publication in the shows distinctive characteristics in its price FEDERAL RESERVE BULLETIN on or about the first of the month following. fluctuations, raw materials, e. g., being more What the Board desires to get are (1) the general index sensitive in normal times than manufactured number for the total number of commodities, also (2) the Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
812 FEDERAL RESERVE BULLETIN. SlIPTUJiBHI! 1, 1918. figures for prices multiplied by weights for a selected prime stock exchange or other current collist of individual commodities, and (3) absolute and rela- lateral. Separate rates are quoted for paper of tive prices for a limited number of individual commodities. longer and shorter maturities in the first- In case there is no objection to the use and publication named and last-named classes. In addition in the FEDERAL RESERVE BULLETIN of these data, we shall send our man to your office each month to secure the fig- rates are quoted for paper of local importance ures, unless you prefer to mail us regularly each month such as cattle paper in several of the western the respective data in time for publication in our monthly districts. High, low, and customary rates are BULLETIN. given, the latter representing the rates at which Respectfully, the bulk of the several classes of paper was (Signed) W. P. G. HARDING, Governor. discounted or purchased. Quotations were Dr. ROYAL MEEKER, secured through the Federal Reserve Banks 17. S. Commissioner of Labor Statistics, and their branches, and care has been exer- Washington, I). C. cised to insure that the data will be upon a fairly comparable basis. Quotations will be U. S. DEPARTMENT OF LABOR, found incomplete in certain cases, but it is BUREAU OF LABOR STATISTICS, hoped to lessen the number of such omissions August 17, 1918. in future reports. The tabular presentation Mr. W. P. G. HARDING, Governor, Federal Reserve Board, Washington, D. 0. employed will permit a ready comparison be- DEAR SIR: The receipt is acknowledged of your letter tween rates prevailing in different sections for of the 16th inst. inquiring if the monthly index number the same type of paper, as well as between of wholesale prices computed by this Bureau, together rates prevailing in the same section for differwith certain other data relating thereto, can be furnished ent types of paper. to you by the 20th of each month for publication in the FEDERAL RESERVE BULLETIN on or about the first of the Data concerning the rates for the several month following. classes of paper prevailing in these same cities I shall be very glad to furnish this information to you in during 30-day periods ending on the 15th of the manner and for the use suggested. Recently, owing the month for the years 1911, 1912, and 1913 to the congestion of work in the Government Printing Office, the Monthly Labor Review in which the index are now being gathered. It is proposed to number is published has not been available for distribu- express current quotations as percentages of the tion until some days after the 7th. There is no objection, averages of quotations for the same periods in a however, to your publishing the index number in advance each of the three earlier years. An average of its publication by this Bureau provided its source is will be struck, for example, of the rates for a, dearly stated in your BULLETIN. It will be agreeable to me for your man to call at the particular class of paper prevailing during the Bureau for the information on or about the 20th of each 30-da3^ periods ending July 15, 1911, July 15, month. I am, 1912, and July 15, 1913, and the quotation Very truly yours. for the 30-day period ending July 15, 1918, (Signed) ROYAL MEEKER, expressed as a percentage of the average rate Commissioner of Labor Statistics. prevailing during the earlier periods. By the use of this method allowance will be made for Discount and Interest Rates. seasonal variations in rates, and accurate com- In the accompanying tables are presented parisons will be rendered possible between actual discount and interest rates prevailing present rates and those prevailing prior to the in the various cities in which the several inauguration of the Federal Reserve system and Federal Reserve Banks and their branches are the opening of the present war. The comlocated during the 30-day periods ending July parisons will of course necessarily be somewhat 15 and August 15, 1918. Quotations are given crude in certain cases, as interest rates at for prime commercial paper, both customers' times are sluggish in their movements, and and open market purchases, interbank loans, when changes occur these are often not so bankers' acceptances, and paper secured by slight in amount in comparison with the rates. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
SEPTEMBER 1,1918. FEDEKAL BESERVE BULLETIN. 813 themselves as is the case with other data for made there. Kindly eliminate rates charged infrequently which relative figures are computed. A 1 per on loans for small amounts, which rates do not actually represent charges for prime paper, but include a considerable cent change in a 6 per cent interest rate is risk element as well. relatively much greater than a change of 1 Rates on prime member bank acceptances eligible for cent in the price of a pound of cotton costing rediscount at the Federal Reserve Bank are desired in 30 cents. The same objection would, however, class 4-B. In certain of the centers in which this class of apply in many cases to the computation of paper is actively dealt in it should be possible to secure separate quotations for indorsed and unindorsed bankers' relative figures for commodity prices as against acceptances, and we would request again that you ensecurity prices, or retail as against wholesale deavor to secure such quotations. Under the head of prices, and it is not believed that the objection special types of paper reported in class 7, it appears that which in certain cases may be raised is serious there are two classes for which quotations should be given enough to impair the usefulness of relative if such paper is current locally, namely, commodity paper secured by warehouse receipts, etc., and cattle paper. In figures of interest rates. addition to the rates for which current information is sent, Instructions supplementary to those of July it would be desirable to have also information regarding 17 were issued in a general letter dated August rates charged during the 30-day period for paper secured 30, as follows: by Liberty bonds and certificates of indebtedness. Analysis of the reports of discount and interest rates Between July and August of the present year prevailing in the several Federal Reserve and Federal Rethere has been in general a slight movement serve branch cities during the 30-day periods ending July upward in interest rates. This may be re- 15, 1918, and August 15, 1918, shows that it is desirable to marked not only for certain of the great eastern supplement in certain particulars our circular letter X-1068, dated July 17, and our letter of August 2. centers, such as New York and Boston, but It is very important that the data be upon strictly a also for Kansas City and San Francisco. In comparable basis. May we, therefore, ask that before trans- certain cases the customary rates show a mitting the report to this office you Idndly compare the higher level, in others the low or the high current report with the previous week's report and verify rate for the month has risen. On the other any striking changes which may appear. Please also bear in mind that the data from each Federal Reserve Bank and hand, there are a smaller number of cases branch are to be confined to rates prevailing in the respec- of decline in rates for particular classes of tive city only, and not in the entire district, nor should paper, while a considerable number of centhey include rates on loans in outside cities by banks in ters show rates unchanged from the level the city for which the report is made. The local rate for prevailing during the 30-day period ending each class of paper is desired, not the rate secured elsewhere, as, for instance, in New York on loans temporarily July 15. 78653—18 3 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
Discount and interest rates prevailing in various centers. QO DURING 30-DAY PERIOD ENDING JULY 15, 1918. Prime commercial paper Bankers' acceutanc Collateral—Stock Exchange or other District. City. Customers. Open market. In l t o e a rb n a s. nk f 60 to 90 days. current. C lo a a t n tl s e . r S w e e c a c e r u i e p r h e t o s d , u e b s t y e c 3 d 0 a t y o s . 90 m 4 o t n o t 6 hs. 3 d 0 a t y o s 9 . 0 m 4 o t n o t 6 hs. Indorsed. d U or n s i e n d - . Demand. 3 months. m 3 o n to th 6 s. N N N o o o .3 1 2 N P B h e o i w s l t a o d Y n e o lp rk hia ff f I t t t I. 5 K f L i l i f f f C i i i 3 ! . f f H i i 5 f L ii . f f C t i3 . f f f H t i t i . i5 L 3 . f f f C i t i 3- . f f f H i i i j. f f f L t i t .a f f f C t t t . f f f H i t i " * . 5 5 L. f f C i i 1 . 4 4 I . I k 5 f . f 4 4 L 1 V . e 4 4 4 C * 1 . 4 4 4 i7 " ? l . r A 4 L i . 1 • 4 4 4 C ^ 1 1 . f f f i t t . 0 f 1 t L " . f f C t i . 2 f f f H t i t 6 5 f L i " 1 i . f f f C i i i . f f f I t t i I f f L i i3 " . - f f f C i t i . II. L. C. H. L. C. No. 4 Cleveland ft fi fi1 fi 6* fi ft1 ft fi" fi ft fi fi fi" 41 a4* - 41 41/ ft fi ft fi 5 fi ,fi 6 Pittsburgh fi fi* ft ft ft ft ft ft fi ft ft ft ft ft 4.x 4} 4* 4* 4i ft r> ft fi* (\ ft fi* ft 6 6 6 Cincinnati ft k « ft fi* ft ft ft fil ft ft fi 5 fi 43. 4* 4-| 4* 7 ga ft 71 fi' fi 8 fi" ft No. 5 . Richmond .. . ft r> ft fi ft ft ft ft ft" ft ft fi fif ft * fi ft ft ft 6 fi ft fi fi Baltimore ft ft ft ft fi ft 5.3. fi* ft ft ft ft ft ft fil ft ft fi* fi ft ft No. 6 Atlanta... fii ft ft fi ft ft ft ft ft ft ft fi fii fi* fii fii fi* fii ft fi| ft ft fi1- eft ft 6 6 6 Birmingham 7 6 6 6 6 6 6 6 6 6 6 6 6 6 8* 7 6 6 8 6 7 7 6 6 No 7 J C D N a he e c iw k t c r s a o o Og i n o t r . v .le il a l n e s f f V 7 t t 4 6 f f i i \ < f f i t t \ f 7 f i i t f 6 f f i i i- " 1 f V f ft t t 8 ft * f b f i i * i f f t i t f f t t * f f b f t t i " i f f 6 t t * 4 b ft 5 V fi * * 4 f 6 f t i* " ft " A f i" 5 "fii* 4 ft * 4 fi J fii f f f i t t t 6 r f 2 i f f f i t t f f 8 t i 4 f 5 i } f f i i f f 8 i i 4 f f t i 1 " l f f f t t t 7 5 6 No. 8 St. Louis. ft fii fi fi fi ft ft ft fi ft ft fil. ft ft ri ft fit fi1- fi fi1 ft ft fii ft" fi Louisville ft 5 ft fi 5 fi ft 5 ft ft 6 ft ft 5 ft" ft 51 ft 51 ft" 5 ft fi- fi ft fi" ft ft No. 9 Minneapolis ft fil ft 7 fi fi' ft fi ft ft' fi ft fi1 fii ft ft ft fi fit. ft fi fi fi No. 10.. Kansas City 7 fi fi 7 fi fi" ft fi fi ft" fi ft ft" ft 8 fi fi 8 ft fi 8* fi ft 8 6 7 Omaha 7 fi fi 7 fi fi ft fii. fi ft fii ft fi fi* ft 6 fi 8 fi ft 8 fi ft 8 6 7 Denver s fi fi s fi ' ft ft g Ji-fi ' 7 51 ft fii ft 8 ft 8 6 6 No. 11 Dallas 8 fi fi 8 7 7 1ft fi fi ft ff ft fi fi ft 7 ft ft 7 fi ft 8 ft 10 6 8 El Paso 8 fi 8 8 (\ H fi ft fi ft ft ft 7 fi 7 8 8 8 8 8 8 8 8 8 10 8 8 w No. 12 S S P S e p a o a n o r t t k t l F l a a e r n n a e d ncisco 8 8 7 6 6 f f 5 i > f f 7 i 8 8 6 ^ 6 f 6 t ! 6 f 6 i f G f i f 6 f 6 t i 6 f 6 i " 6 f f 6 i i f 6 f 6 i i f 6 f 6 i i 6 f 5 ft t 6 f f 5 t i 4 A 5 £ lj 4-| 4 4 s 1 4 5 ?- 4 4. f 1 r - 4 4s 1 6 8 5 5 6 7 8 6 < 6 5 \ 6 f 8 t 8 6 5 6 6 8 :'::: •;::: E d 7! i \ CD »-* 00 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
DURING 30-DAY PERIOD ENDING AUGUST 15, 1918. N N o o . . 2 1 . N B e o w st o Y n o .. rk f f t t fi?.f 3 t -fi f f i t aft f G t f ft t f f t i* f f t t f ft t ft f f i i ft 4* 5 fi * x 4 fi A4 4 * * 4 4_ * v 4 fi * - 4> I 4A f 6 t1- 4 ft 6 f f t t ft « ft f fi t ft ft No. 3... Philadelphia ft fij. ft ft fi S* ft ft ft ft ,fi 5* 4A. 4} fi fi 6 ft fi ft ft r$ ft No. 4 Cleveland ft fi ft ft fi ft ft- ft ft fi fi ,fi 41 4 a4J 4-v- ft fi ft ft 5 fi ft fi ft Pittsburgh ft fi fi ft R fi ft ft ft ft fi ft ft fi ft 4V 43, 4?- 4.3. ft 5 6 (5 fi fi fi ft 6 4* fi Cincinnati ft ft ft fi ft fi ft ft 6 ft* fi 6 fi 5 fi 43. 4k 4-;. 4* 7 fi 6 ft fi 8 ft ft No. 5... Richmond ft fi ft ft ft fi ft ft ft ft ft ft fi fii ft fi fi 6 ft" ft ft ft ft ft Baltimore ft ft ft ft (5 R1- ft ft r> fi fi ft fi* ft ft 5*. No. 6 fi-1 fi.l. ft ft ft 6 ft ft ft 7 ft fi ft fi h\ 51 fi?v fi fi 6 7 ft" fi ft ft 6 V. 6 ft Birmingham 7 6* 6 6 6 6 G 6 6 G 6 6 6 6 61 8 6 6 8 6 6 8 6 ft 7 6 6 Jacksonville 8 b V 8 b V V b to-i V b b 4 o b b b b b b 7 6 No. 7 CNheiwca gOorleans f 7 t f f i i f f t t f7i f f t i- " V 6 6 f f t t fftt ft f f i t - " 1 f f t i* - f f i t* f ft t , f f i i f f t i1 " 4-?w 4 fi 1 Rl- 4 fi * f fi t " * * f f i i G 6 6 f f t i1 - - f f t t f 7 t ft f f t t ft Detroit . fi7- ft ft fi 6 ft ft ft ft ft fi ft 4 ft g ft ft 6** ft" fi ft ft (\ fi ft ft No.S St. Louis fi 5* ft fi fi fi 7 ft 6 7 ft fi fi fi 5* ft 4; fi fi ft 5* ft ft* ft 7 fi* fi Louisville ft fi ft fi fi fi ft fi ft fi ft ft fi ft" fi* ft g.i. fi-1- ft g^ 6 ft~ r-j" ft ft" ft No 9 . Minneapolis ft ft 7 ft 6-64 ft ft ft g ft ft 71 ft 7 fi.T G f> ft 7 ft No. 10 K O a m n a s h a a s Cit v 7 «2 f C i i f f t t 8 7 f f i i f G i f f t t * ' f f i t f f i t f£ l i-1 ft f f i t ft ft" 8 8 f f i i G 8 7 f f i t i f \ t 8 7 f f t t f g t - 8 s f f t i 6-*-7 8 ft 8 R fi fi* ft ft ft1 ft fi 7 ft ft 8 ft ft 8 ft ft ft No 11 Dallas 8 g ft 8 7 7 ft" ft ft ff ft ft ft fi ft 7 ft 6 7 ft" ft Q g2 ft 10 6 g El Paso 8 g 8 8 fi 8 ft ft ft fi ft ft ft 7 .... 8 8 8 8 8 8 8 8 8 10 8 8 No. 12 San Francisco fv* fi fi ft* fi fi ,fi fi fi* fi ft ft fi •fi* 4\ f>* fi* 4-S fi1- 7 G 7 ,fi ft 7 5 ft Portland 7* fi ft ft ft ft" fi ft ft g ft 4? 4 4J- 7 ft ft Seattle a 8 1?6 10 54 6 f 6 f 6 6 6 6 4 44 44 44 44 4410 6 6 10 6 6 10 6 6 Spokane . 8 7 8 7 ft ft ft ft ft ft 8 fi 8 8 8 ft 8 Salt Lake 8 6 7 8 G 7 6 6 04 6 G 7 6 6 8 6 7 8 6 7 8 6 7 « The 10 per cent rates represent rotes charged on loans for small amounts. bd i a 00 C7I Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
816 FEDERAL RESERVE BULLETIN. SEPTEMBER 1,1918. Retirement of Hon. Paul M. Warburg. short of a national disgrace if this country, of all countries, should condone or indorse the Below is reprinted a statement, given out on attitude of those who would permit the Ameri- August 9 at the time of the retirement of Hon. can of German birth to give his all but would not trust him as unreservedly and as whole- Paul M. Warburg, member of the Federal Reheartedly as he, for his part, serves the country serve Board, whose term then expired, of corof his adoption. Unfortunately, however, in respondence passing between the President and times of war we may not always count upon Mr. Warburg: fair reasoning. It is only too natural that, as our casualty lists grow, bitterness and undis- WASHINGTON, May 27, 1918. criminating suspicion will assert themselves in On August 9 my four-year term of office as a the hearts of increasing numbers, even though member of the Federal Keserve Board will ex- these lists will continue to show their full propire. I do not know whether or not, under the portion of German names. constant burden of grave and pressing decisions, Much to my regret, Mr. President, it has you have reached the point where you wish to become increasingly evident that should you "deal with the question of naming my successor choose to renominate me this might precipitate or whether or not you contemplate to have me a harmful fight which, in the interest of the continue in this work. Nor would I presume to country, I wish to do anything in my power to broach this question were it not that I felt that avoid arid which, even though resulting in my in consequence of recent occurrences it has be- confirmation, would be likely to leave an elecome one of policy rather than of personalities. ment of irritation in the minds of many whose Certain persons have started an agitation to anxieties and sufferings may justify their the effect that a naturalized citizen of German intense feelings. On the other hand, if for birth, having near relatives prominent in Ger- reasons of your own, you should decide not to man public life, should not be permitted to renominate me it is likely to be construed by hold a position of great trust in the service many as an acceptance by you of a point of of the United States. (I have two brothers in view which I am certain you would not wish to Germany who are bankers. They naturally sanction. In these circumstances, I deem it now serve their country to the utmost of their my duty to state to you myself that it is my ability, as I serve mine.) firm belief that the interest of the country will I believe that the number of men who urge best be served if my name be not considered by this point of view is small at this time. They you in this connection. probably have not a proper appreciation of the I am frank to admit that I have reached this sanctity of the oath of allegiance or of the oath conclusion with the deepest regret both on of office. As for myself, I did not take them account of its cause and its effect. I have conlightly. I waited 10 years before determining sidered it the greatest privilege to serve my upon my action, and I did not swoar that "I country at this time, and I do not abandon absolutely and entirely renounce and abjure lightly a work, half done, in which I am deeply all allegiance and fidelity to any foreign poten- and genuinely interested. But my continuatate, and particularly to Wilhelm II, Emperor of tion m office under present conditions might Germany/' etc., until I was quite certain that I make the Board a target of constant attack by was willing and anxious to cast my lot unquali- unscrupulous or unreasoning people, and my fiedly and without reserve with the country of concern to save any embarrassment to you and my adoption and to defend its aims and its to the Board in the accomplishment of its work ideals. would make it difficult for me to conserve that These are sad times. For all of us they independence of mind and freedom of action bring sad duties, doubly hard, indeed, for men without which nobody can do justice to himof my extraction. But, though, as in the Civil self or his office. War, brother must fight brother, each must In writing you this letter I have been follow the straight path of duty, and in this prompted solely by my sincere conviction spirit I have endeavored to serve during the that the national welfare must be our only four years that it has been my privilege to be a concern. Whatever you may decide to be member of the Federal Reserve Board. best for the country will determine my future I have no doubt that all fair-minded and course. We are at war, and I remain at your reasonable men would consider it nothing orders. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
SEPTEMBER 1,1918. FEDEKAL BESEBVE BULLETIN. 817 May your patience and courage be rewarded Effective September 1, 1918, Mr. J. A. and may it be given to you to lead our country Broderick has been appointed secretary of the to victory and peace. Federal Reserve Board to succeed Dr. H. Par- Respectfully and faithfully yours, ker Willis, resigned to accept the chair of bank- (Signed) PAUL M. WARBURG. ing at Columbia University, New York. Mr. The PRESIDENT, Broderick has been acting as secretary of the The White House, Board since August 6. Washington. Upon the organization of the Board in 1914, Mr. Broderick became chief examiner and has been in charge of all examinations of Federal Reserve Banks since that time. Prior to join- 9 AUGUST, 1918. ing the Federal Reserve organization Mr. MY DEAR MR. WARBURG: I hope that my Broderick was connected with the Banking delay in replying to your letter concerning your Department of the State of New York, where retirement from the Federal Reserve Board has he rendered conspicuous service in introducing not given you an impression of indifference on a system of foreign exchange department exmy part or any lack of appreciation of the fine aminations. In this connection, in 1912, he personal and patriotic feeling which made that went to Europe and was the first American letter one of the most admirable and gratifying official to examine banking branches abroad. I have received during these troubled times. I During the same year he organized the credit have delayed only because I was hoping that bureau of the State Banking Department. the Secretary of the Treasury would be here to He is a member of the New York Credit Men's join me in expressing the confidence we both Association and has been active in the affairs feel, alike in your great ability and in your of the National Association of Supervisors of unselfish devotion to the public interest. State Banks, of which organization he is an Your retirement from the Board is a serious honorary member. He has also been promiloss to the public service. I consent to it only nent in the educational activities of the Ameribecause I read between the lines of your genercan Institute of Banking. ous letter that you will yourself feel more at ease if you are left free to serve in other ways. I know that your colleagues on the Board have not only enjoyed their association with Election of Directors. you, but have also felt that your counsel has been indispensable in these first formative The Federal Reserve Board on August 6 years of the new system which has served at the appointed Mr. Jesse E. Metcalf, of Providence, most critical period of the Nation's financial his- R. I., as a class C director of the Federal Retory to steady and assure every financial process, and that their regret is as great as my serve Bank of Boston. own that it is in your judgment best now for At an election held by the Boston bank Mr. you to turn to other methods of service. You Philip R. Allen, of Walpole, Mass., was chosen carry with you in your retirement from this as a class B director to fill the vacancy caused work to which you have added distinction, my dear Mr. ¥?Tarburg, my sincere friendship, ad- by the resignation of Mr. Chas. B. Morss, who miration, and confidence, and I need not add, some time ago was elected governor of the my cordial good wishes. bank. Cordially and sincerely yours, On August 8 the Federal Reserve Board (Signed) WOODROW WILSON. designated Mr. P. II. Saunders, of New Orleans, Hon. PAUL M. WARBURG, as a director of the New Orleans branch of the Federal Reserve Board. Federal Reserve Bank of Atlanta. The completion of the organization of the Memphis branch of the Federal Reserve Bank Change In Secretaryship of the Board. of St. Louis was announced on August 8. The The following statement for the press, issued directors appointed are as follows: Appointed to the morning newspapers on August 14, 1918, by the Federal Reserve Board: T. K. Riddick announces the appointment of Mr. J. A. and S. E. Ragland. Appointed by the Federal Broderick as secretary of the Board: Reserve Bank: R. Brinkley Snowden, John D. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
818 FEDERAL RESERVE BULLETIN. SEPTBMBMK 1,1918. McDowell, and John J. Heflin. Mr. Heflin organization has been completed by the election of offiwas designated as manager of the bank. cers, and that a head office would be opened presently at No. 66 Liberty Street. The company proposes to engage in international and foreign banking in China, in the Silver at $1.01 1-2 Per Ounce. dependencies and insular possessions of the United States, and, ultimately, in Siberia. The following announcement was issued by Charles H. Sabin, president of the Guaranty Trust Co. the Treasury Department on August 10: of New York, is president of the new company. The Under the authority of the act of Congress vice presidents are Albert Breton, vice president of the approved April 13, 1918, silver has been sold Guaranty Trust Co., and Ralph Dawson, assistant secreby the Secretary of the Treasury at a price tary of the Guaranty Trust Co. Robert A. Shaw, of the which will permit the Treasury from new pur- Overseas Division of the Foreign Department of the chases of a corresponding amount of silver at Guaranty, is the treasurer. The directors are Charles II. the price of $1 per fine ounce to recoin the Sabin, Seward Prosser, president of the Bankers' Trust silver purchased into silver dollars without Co.; Thatcher M. Brown, of Brown Bros. & Co., who will loss. In order to provide for the various items represent the interest of the Mercantile Bank of the of expense involved it was found necessary to Americas; Eugene W. Stetson and Albert Breton, vice fix the price for which silver was sold at $1.01-! presidents of the Guaranty Trust Co. of New York; F. I. per fine ounce, and it was made a condition of Kent, vice president of the Bankers' Trust Co.; Ralph sale that the purchaser should not pay a higher Dawson, Herbert Fleishhacker, president of the Anglo price for silver in other markets than in those and London-Paris National Bank, San Francisco, Cai.; of the United States. M. F. Backus, president of the National Bank of Commerce, Seattle, Wash.; C. F. Adams, vice president of Up to the present time the Federal Reserve the First National Bank, Portland, Oreg.; and George E. Board has freely granted licenses for the export Smith, president of the Royal Typewriter Co. and of the of silver. In order, however, to conserve the American Manufacturers Export Association, New York. use of silver, export licenses for silver will hereafter be granted only for civil or military Preparations are being made to open branches in China, purposes of importance in connection with the and as a preliminary step a central branch will be estabprosecution of the war and only in cases where lished at Shanghai. With that object in view a special the exporter certifies that the silver to he commission will be sent into the Far East by the Asia exported has been purchased at a price which Banking Corporation. This commission will be headed does not directly or indirectly exceed $1,014 by William C. Lane, vice president of the Guaranty Trust per ounce one thousand fine, at the point where Co. of New York; Mr. Dawson, Crawford M. Bishop, forsilver is refined in the case of silver rpfined in mer director of the Far Eastern Division of the Bureau of the United States or at the point of importa- Foreign and Domestic Commerce of the united States tion in the case of imported silver. Applica- Department of Commerce; and other representatives of tions for licenses to export silver should also the company who are to be stationed permanently in state from whom the silver was purchased, the China. The commission will visit Japan and will make point at which silver was delivered to pur- a survey of local conditions in that country as well as in chaser, for whose account and by whose order China. The commission expects to leave this country and for what purpose the silver is to be early in September. exported. The Asia Banking Corporation was formed under the laws of New York State with a capital of §2,000,000 and a surplus of 3500,000, all of which has been paid in. Among Banking Development the stockholders are the Guaranty Trust Co. of New York. The following statement, supplied by the the Bankers' Trust Co., the Mercantile Bank of the Amer- Asia Banking Corporation, is published pursu- icas, the Anglo & London-Paris National Bank of San Francisco, the First National Bank of Portland, Greg., ant to the Board's plan announced in the and the National Bank of Commerce of Seattle, Wash. August number of the FEDERAL RESERVE In New York the bank will occupy the second floor at BULLETIN of furnishing as complete data as No. 66 Liberty Street. Present plans contemplate the possible relative to developments in the exten- establishment of branches in Hankow, Peking, Tientsin. sion of American banking facilities in foreign Harbin, and Vladivostok. When the Russian situation clears the new bank will be ready to establish itself in countries: Russia and Siberia or to affiliate itself with old or new On Friday. August 9, 1918, there was issued the Russian banks. The company is prepared to increase its announcement of the Asia Banking Corporation that its capital according to requirements. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
SEPTEMBER 1,1918. FEDERAL RESERVE BULLETIN', 819 Remittances and Clearings. each Federal Reserve Bank to be made, for such period as the Board may deem advisable, in order that there During the month of August three interestmay be a more exact knowledge as to what constitutes ing developments have occurred in connection a large amount of "float" now appearing in the statement with the further working out of the system of of the Federal Reserve system and in order that each clearances and remittances under the Federal Federal Reserve Bank may study in a more detailed way methods of eliminating its own " float." Reserve system and among the affiliated institutions. These are (1) the extension of the Subsequent to the meeting referred to above Federal Reserve exchange draft system; (2) Governor Harding on August 12 sent to Federal the adoption of regulations by the New York Reserve Banks the following letter: Clearing House governing the clearing and At the suggestion and upon invitation of the Federal collection of acceptances; and (3) the estab- Reserve Bank of Cleveland, an informal meeting was held lishment of an informal agreement among on August 7 at the office of the Federal Reserve Board to discuss Federal Reserve exchange drafts. The meeting member banks relative to the reimbursement was attended by representatives of six Federal Reserve of banks by their clients for the face of accept- Banks. The recommendations made, a copy of which is ances liquidated by such banks. inclosed with this letter, have been considered and approved by the Board. FEDERAL RESERVE EXCHANGE DRAFTS. (1) Federal Reserve exchange drafts.—Effective September The following is the report of a meeting of 3, the limit of drawingsof such drafts shall be increased from representatives of Federal Reserve Banks held $250 to §5,000. Federal Reserve Banks paying exchange drafts of other Federal Reserve Banks will be permitted to at the Treasury Department on August 7, at deduct the amount paid from the total credits reported in which certain recommendations relative to the gold settlement clearing for the day. The daily tran- Federal Reserve exchange drafts were formu- script, forwarded to each Federal Reserve Bank, should lated: show the items credited for the day and a deduction therefrom of the exchange drafts paid for its account. The net At a meeting held in the Treasury Department Building credit should agree with the figures reported in the gold in the Board room of the Federal Reserve Board, August settlement clearings. 7, 1918. at which the following were present: Mr. M. J. Fleming, assistant cashier, Federal Reserve Bank, Cleve- (2) The Board deems it desirable for the Federal Reserve land; Mr. S. H. Hendricks, cashier, Federal Reserve Banks to adopt the recommendation of the committee that Bank, New York; Mr. Pierre Jay, Federal Reserve agent, all Federal Reserve Banks give immediate credit for clear- New York; Mr. F. J. Carr, assistant cashier, Federal ing-house items on the day such items are received from Reserve Bank, Chicago; Mr. Charles A. Peple, deputy other Federal Reserve Banks, the balances so credited to governor, Federal Reserve Bank, Richmond; Mr. Thomas be included in the credit balances reported for settlement Gamon, jr., assistant cashier, Federal Reserve Bank, through the gold fund clearings. The actual payment for Philadelphia; Mr. C. C. Bullen, cashier, Federal Reserve such balances would then be made on the same day as Bank, Boston. settlement is received by the paying Federal Reserve Bank for the checks and other items it collects. It is recommended to the Federal Reserve Board that (3) With respect to the recommendation that a more the limit for the drawings of Federal Reserve exchange detailed analysis be made of the "float" situation (i. e., drafts be increased from $250 to $5,000 and that Federal the extent to which immediate credit has been given upon Reserve Banks holding Federal Reserve exchange drafts of other Federal Reserve Banks be permitted to deduct uncollected items), there is inclosed herewith a memosuch Federal Reserve exchange drafts from the total randum prepared by the statistical division based upon credits reported to the Federal Reserve Board in the gold the information which it has at hand. The Board is willsettlement fund each day. ing to have a more detailed study of this question made, but to do so will require a call for the necessary data from In order to bring about a daily settlement for clearing house items, it is recommended that all Federal Reserve each Federal Reserve Bank, and it is believed that such Banks give immediate credit for clearing house items the study could best be made at the different Federal Reserve day received from other Federal Reserve Banks, without Banks. regard to the time of day received, inasmuch as the ACTION OF NEW YORK CLEAEING HOUSE. balance so created is reported to the gold settlement fund at the close of business but is really settled the following Important action taken by the New York day when the checks have been collected. Clearing House Committee will permit bankers7 It is voted that the Federal Reserve Board be asked to acceptances and notes made payable at clearing cause a more detailed analysis of the "float" situation in Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
820 FEDERAL RESERVE BULLETIN. SEPTEMBER 1,1918. banks to be cleared through the exchanges on house on the morning following its maturity. the day of maturity, so that final payment is The aforementioned ruling of the New York made on the due date. This supplants the Clearing House thus advances the date of long-established custom of presenting such items payment by one day. at maturity and receiving either certification While it was universally felt that the ruling thereof or checks, final payment thus being of the clearing house was desirable, it created delayed for one day after maturity. the necessity of the member banks amending The new practice will result in the elimination their arrangements with their clients of a substantial amount of one-day "float," with respect to the time and method of which is in line with the Federal Reserve reimbursement. Board's endeavors to reduce as far as possible Under the old method New York banks had the extent to which banking resources are ab- become accustomed to a large extent to receive sorbed in carrying items matured but not yet reimbursement from their clients, for whose paid. account the acceptances were made, on the Following is a copy of the Clearing House day of maturity. The clients generally paid Committee's announcement of July 29: their obligation to the bank by means of their check on another bank or by debit on the books DEAR SIR: AS you are aware, it has not been the custom to include notes and acceptances in the daily exchanges, of the accepting bank. If payment was made although such items are recognized as proper material for by check, the check went through the clearing the exchanges by the terms of sections 2 and 6 of Article X house on the day following maturity; that is, of the constitution. on the same day that the acceptance or the In view of the rapidly increasing employment of acceptcashier's check given in payment of the acceptances in commercial transactions, and with intent to increase as much as possible the usefulness of the clearing ance, passed through the clearing house. If function, the Clearing House Committee has this day re- the acceptance was paid to the accepting bank moved the restriction heretofore placed upon notes and by its client by debit entry on its books, such acceptances, and you are therefore advised that on and debit entry was generally offset by deposits the after August 1, 1918, notes and acceptances may be sent client had made on the same day of items that through the morning clearings on the day of due date. Your attention is particularly directed to the require- passed through the clearing house the following ments of Article X that all missent items must be returned day. In either event, therefore, the accepting by hand. bank received actual cash funds from its By order. clients, on the day the acceptance which had WALTER E. FREW, been certified for payment or the cashier's Chairman Clearing House Committee. check (if payment was made by cashier's check) WILLIAM J. GILPIN, Manager. passed through the clearing house. JOINT ACTION BY BANKS.1 The ruling of the clearing house, however, As just seen, by resolution dated July 29, made the acceptance payable in cash on the 1918, effective August 1, 1918, the New York day of its maturity and this necessitated a Clearing House Committee ruled that notes readjustment of the manner in which banks and acceptances may be sent through the will receive reimbursement from their clients. morning clearings on the day of maturity. At a meeting of the leading banks of New Prior to that time it had been the custom York City, Boston, Philadelphia, Chicago, and among New York banks to pay acceptances other cities, held at the National Bank of upon presentation by cashier's check or by Commerce in New York on August 14 1918,x ? certifying the acceptance, making it payable the following resolutions were adopted: through the clearing house. By either method Whereas, the Clearing House Committee of the New the acceptance was paid through the clearing York Clearing House Association by resolution adopted July 29, 1918, effective August 1, 1918, has ruled that i Statement furnished by J. E. Rovensky, vice president National Bank of Commerce. i Mr. J. E. Kovensky, chairman. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
SEPTEMBER 1,1918. FEDERAL RESEEYE BULLETIN. 821 acceptances may be passed through the clearings on the transmit the combined returns to the Federal Reserve day of their maturity, and Board. In this way reports showing the actual volume Whereas, it has therefore become necessary that banks of business at clearing-house points will be obtained. executing acceptances which are payable through the Present clearing-house returns show only the total of New York Clearing House adopt some uniform rule cover- checks which actually pass through the clearing house ing the time and manner of reimbursement from their and thus fail to take account of the large volume of checks clients for such acceptances; which are settled through the individual member banks. Resolved, that the accepting bank shall require from its They also lack uniformity in that outside items are inclients that it be placed in funds to meet acceptances on cluded in some cases. day of maturity either by— Simultaneously with the publication of this (a) The deposit of clearing house funds one day prior statement there was transmitted to each to maturity, or (6) The deposit of cash or check on the Federal Reserve Federal Reserve agent a letter outlining the Bank of New York on day of maturity, or method to be pursued in obtaining the statis- (c) Debit to the account of the bank's client on day of tics for total bank transactions as follows: maturity against funds cleared on or prior to such date." The Federal Reserve Board is desirous of obtaining The above rules are similar to those followed accurate and trustworthy statistics showing the relative by English banks which require that all volume of banking business at various points, and to this maturities be covered at least one clearing day end it incloses you herewith draft of a letter which it wishes you to send to the manager of each of the clearing prior to the maturity of the respective houses in your district. The letter will be self-explanatory acceptance. as to the procedure to be followed up to the time reports are received by you from the several clearing-house points. Reports of Total Bank Transactions. When these reports have been received they should be tabulated and a message giving the replies from each The Federal Reserve Board has for some clearing-house point should be telegraphed to the Federal time past felt that the figures for clearing-house Reserve Board, Division of Analysis and Research, on Saturday morning of each week. In view of the importransactions currently issued afforded only an tance of the information desired, it is recommended that inadequate view of actual business and bankeach Federal Reserve Bank bear the cost of all telegrams ing transactions at the several points through- transmitted to it by clearing-house managers. out the country to which they related, and [Inclosure.] has desired to obtain a better indicator of the DEAR SIB: The Federal Reserve Board desires to obtain volume and relative importance of business figures showing as nearly as possible the actual volume of transactions. To this end it has devised a banking business transacted at the various clearing-house points throughout the country. At present, the " explan for obtaining figures showing total bank changes for clearing house" as currently reported, do not transactions, announcing the essentials of the always furnish an accurate index to the volume of business at any given point, as they include only those checks new scheme in a statement issued to the press which pass through the clearing house. on August 1, as follows: You are therefore requested to obtain from each of the members of your clearing house figures showing for a The Federal Reserve Board to-day decided to under- period beginning Friday, August 9, and ending at close of business Thursday, August 15, and for each weekly take the collection of statistics designed to furnish an period Friday to Thursday thereafter, the total of checks accurate and trustworthy index of the volume of banking drawn on and paid by each reporting bank: business at the various clearing-house points throughout (a) By individuals, firms and corporations, and the the country. It transmitted to each Federal Reserve United States Government. (b) By other banks and bankers. Bank a letter requesting that the manager of each clear- (Drafts and checks on other banks are not to be ining house in the district be asked to obtain from each of cluded.) the members of such clearing house figures showing, for The figures thus obtained should be telegraphed as each week, the total of checks drawn on and paid by each combined totals on Friday of each week to the chairman of the board of directors of the Federal Reserve Bank of reporting bank, separating those drawn by individuals, this district. If, however, there are members of your firms, corporations, and the United States Government clearing house who are not members of the Federal Reserve under one head and those drawn by other banks and System and who object to furnishing the data called for, bankers under a second head. you will please forward totals of the returns actually received by you from assenting banks, adding the names It is intended to have these figures telegraphed each of banks which do not report. week to the chairmen of the board of directors of each The Federal Reserve Board will appreciate your atten- Federal Reserve Bank of each district, who will then tion to this inquiry. 78653—18 £ Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
822 FEDEKAL BESEEVE BULLETIN. SEPTEMBER 1, 1918. On August 30 the following letter was sent (a) All debits to accounts carried by the Federal Reto Federal Reserve agents and to such of the serve Bank or branch, exclusive of Government account, and created either by checks or written or telegraphic branches as carry deposit accounts: order, and Analysis of the data received for the past two weeks (6) All debits, including checks paid, on United States makes it desirable to supplement our circular letter Treasurer's account. X-1100, dated August 1, and subsequent telegrams, These figures are to be given separately, in even thourelating to returns by clearing-house managers of checks sands, for each Federal Reserve Bank and branch carrying paid by their member banks, also our instructions regard- separate accounts, the branches in the latter case reporfcing weekly telegrams from the several Federal Reserve ing direct to the Board. These data should also cover Banks of total debits to member banks' and Government the weekly period ending Wednesday evening. accounts. Copies of these instructions are transmitted direct to There is inclosed herewith copy of letter which is being Federal Reserve branches having deposit accounts. sent to the several clearing-house managers from whom it The following letter, referred to above, was is desired to secure reports, with the view of securing sent to clearing-house managers on August 30: greater uniformity in the returns, and placing the data upon a strictly comparable basis. This letter is thought Reports of the total check transactions received for the to be self-explanatory. two previous weekly periods make it desirable to supple- It is also thought desirable to eliminate certain of the ment our letter of August 1, transmitted to you through smaller clearing-house centers from which reports have the chairman of the board of directors of the Federal Rebeen received. Accordingly a list of the centers in your serve Bank of your district. There are indications that district from which it is desired to secure weekly returns the instructions regarding the information desired have is given below. Kindly use your best efforts to secure the not been interpreted in exactly the same manner in ail information for such cities on the list as do not at present the centers from which data have been requested. Hence report, in addition to those cities for which you have been it is believed desirable, in order that the information able to secure the weekly data. secured may be placed upon a strictly comparable (list of clearing-house points appropriate to each basis, to state in greater detail what sort of information district.) is wanted. Any suggestions with regard to the above list will be It is desirable to have each clearing house member w elcome. bank in your city report to you each week for the previous Confirmation of the telegrams received after the last weekly period ending Wednesday evening— statement was issued have shown that several errors oc- (a) The total debits charged by it to account of indicurred in transmission. It is believed desirable, there- viduals, firms, and corporations, and the United States fore, to have separate totals for both classes of items given, Government. Checks against all accounts, including so as to enable this office to discover such errors immedi- savings and trust accounts, with such banks, cashiers' ately, and take the necessary steps to ascertain the correct checks, expense checks, and certificates of deposit paid figures. In order to avoid any misunderstanding, the fol- should be included. Corrections or like charges should lowing standard form of telegram has been devised. be excluded. Kindly state figures in even thousands and use numerals, (6) Total charges to accounts of banks and bankers, exalso if no report is received for a city on the list, please so cluding debits in settlement of clearing-house balances specify. Please give by name nonreporting banks in and corrections or like charges. Drafts and checks drawn cities for which incomplete returns are being forwarded. by reporting bank on other banks are not to be included. It is suggested that you use this form in obtaining the While this office does not wish to impose any undue i niormation from the several clearing-house managers: burden, it is very important that in all cases separate figures be be shown for the two items, debits to individual MEMBERS' CLEARING-HOUSE REPORT. accounts and debits to banks' and bankers' accounts in- Debits to individual account. stead of one total figure covering all debits. Debits to banks' and bankers' account. The combined totals, in even thousands, for your local Total. clearing-house banks, for each item, for the week ending Wednesday evening should be telegraphed on Thursday FEDERAL RESERVE BANKS. of each week to the chairman of the board of directors of Debits to bank account. the Federal Reserve Bank of your district. In case some Debits to Government account. member or members of your clearing house who are not Total. members of the Federal Reserve System object to furnish- There has been some misunderstanding as to the items ing this data called for, we would again request that you to be included in the reports of debits by the Federal please forward totals of the returns actually received by Reserve Bank and branches. These have been stated as you from assenting banks, adding the names of banks follows: which do not report. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
SBFTHMBBB 1,1918. FEDEBAL RESERVE BULLETIN. 828 Th© figures transmitted to the Board as a employees receiving the proceeds of those checks do not result of this call were first issued on August 24 maintain checking accounts. In inaugurating its service the Board has, therefore, rein a statement as follows, accompanied by quested all clearing house managers to telegraph each figures for the weekly periods ending August week figures showing total amounts of debits to deposit 15 and August 21: accounts, including all checks paid during the week by member banks of their respective clearing houses, and it The Federal Reserve Board has undertaken the preparais expected that the uniform method adopted will reflect tion of periodical statistics of the volume of the Nation's more accurately not only the volume of banking business banking business. This service has been furnished heredone, but the relative importance of each dealing house tofore by the clearing house section of the American city. To-day's statement, being the first, is necessarily Banicers Association, that organization publishing figures incomplete, comprising returns made by about 100 clearcompiled from reports by some 31 clearing house associaing houses only, but as the plan and its purpose become tions. There are, however, about 250 such associations in better understood, it is believed that within a few weeks the "United States and efforts are being made by the Board the Board's tabulation will furnish a more reliable index to enlist cooperation by all of them. of the volume of banking business. Comparisons will be The figures heretofore published by the clearing houses made each week with the preceding week, and at the end of themselves and by some of the financial weeklies were twelve months, with the corresponding week of the previous simply those of checks cleared, and these naturally can year. To-day's figures include transactions from Thursday, not give as complete a picture of the situation as August 15, to Wednesday, August 21, inclusive, compared figures showing all debits to deposit accounts. It is. with figures for the week from Friday, August 9, to Thursof course, impossible to estimate the number of busi- day, August 15, inclusive. In the future, reports will cover ness concerns in the country that use the facilities of the week ending Wednesday, so as to avoid conflict with the the same bank and whose checks are cleared, on the reports' obtained by the American Bankers Association. books of the same bank. The custom prevails in many 8 Figures by Federal Reserve districts for the large industrial centers of drawing one "cash" check weeks ending August 15, 21, and 28 are as for the entire pay roll of a plant. Such checks do not, of course, rearch the clearing house and, as a rule, the follows: [In thousands of dollars; i. e., 000 omitted.! Debits to banks1 and bankers' .Debits to individual account;. account. Aug. 21. Aug. 28. Aug. 15. Aug. 21. Aug. 28. District No. 1—Boston: Bangor 2,703 2,330 373 300 Boston 227,842 201,271 208,512 181,985 202,200 172,728 Fall River 7,683 7,060 363 39 299 Holyoke 2,686 2,910 2,633 45 79 38 Lowell 15,621 5,447 4,296 446 402 New Bedford 5,429 ! 5,600 4,624 147 122 190 New Haven 16,975 i 16,330 13,525 893 375 267 Providence 29,551 ; 26,756 22,436 1,917 1,793 1,703 Springfield i 11,965 ! 11,916 6,912 261 268 Waterbury 18,663 i 7,426 6,419 614 392 388 Worcester 14,883 ! 14,894 12,402 1,600 1,699 1,671 District No. 2—New York: Albany 16,091 | 17/312 17,012 6,698 10,002 Binghamton 2,719 ! 2,702 2,481 Buffalo 53,907 ' 54,697 49,877 11,133 11,944 12,232 Montclair 1,257 1,163 1,062 84 90 43 New York ,702,736 2,788,004 3,084,885 1,276,512 1,422,560 1,377,342 942 1,072 4,787 3,214 2,895 298 159 306 Rochester 23,747 21,621 28,803 454 394 393 District No. 3—Philadelphia: Altoona 2,468 1,993 3,012 Chester 4,661 4,875 Harrisburg 4. """ .103 Lancaster 4,013 4,183 3,656 34 30 57 Lebanon 1,479 2,050 2,206 Norristown 1,131 1,400 Philadelphia , 246,881 227,922 244,669 261,792 277,272 297,677 Reading 7,062 6,335 5,799 Scranton 12,881 10,963 12,075 Wilkes-Barre 6,019 5,937 5,202 Williamsport 2,730 2,957 2,772 22 21 York 2,617 2,817 3,418 35 Wilmington 3,071 5,225 1 Figures comprise debits to both individual account as well as to banks' and bankers' account. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
824 FEDERAL RESERVE BULLETIN. SEFTBMBBB 1,1918. Debits to banks' and bankers' Debits to individual account. account. Aug. 15. Aug. 21. Aug. 28. Aug. 15. Aug. 21. Aug. 28. District No. 4—Cleveland: Cincinnati 52,796 54,619 45,417 35,923 38,971 39,920 Columbus 22,423 18,703 3,031 3,017 Dayton 6,113 10,133 10,519 527 510 Erie 5,827 5,250 5,238 45 104 16 Toledo 19,690 19,677 30,000 8,305 6,767 6,528 Youngstown 13,991 11,406 12,187 113 173 District No. 5—Richmond: Baltimore 75,720 79,850 71,398 39,299 39,085 41,190 Richmond 24,652 23,399 19,538 46,305 58,661 50,467 District No. 6—Atlanta: Atlanta 20,748 17,156 17,758 16,450 Augusta 5,481 5,970 6,257 527 593 Birmingham 10,895 12,878 11,649 2,402 2,706 2,566 Chattanooga 7,561 7,732 7,175 3,529 3,1S8 2,725 Jacksonville 9,302 8,205 9,634 4,643 5,017 5,300 Knoxvillo 3,891 4,544 1,276 513 Macon 6,029 4,906 1,851 2,285 Mobile 4,943 5,624 646 705 Montgomery 3,173 2,859 100 183 Nashville 13,341 17,558 16,903 16,761 8,606 14,576 New Orleans 40,187 47,786 53,180 25,602 28,637 30,888 Pensacola 1,574 1,525 801 964 Savannah 10.597 10,669 2,396 6,115 Tampa 3,450 3,196 3,375 1,545 1,949 927 Vicksburg 1,039 1,057 64 37 District No. 7—Chicago: Ann Arbor 11,010 Aurora, 111 2,246 20 Bay City, Mich 12,838 Bloomington, III 2,239 2,147 1,926" "9oi" 852 901 Cedar Rapids 12,175 | 111,643 Ul,411 Chicago..! U.001,495 ! 525,567 482,999 "547,"ii4' " 522," eiil Danvillo, III 1,194 i 71 Davenport 12,241 4,070 4,426 3,838 1,548 Deeatur, III 3,363 I 3,362 3,175 """684' 472 594 Des Moincs 143,142 144,809 i 39,466 Detroit 107,532 112,125 93,950 * 33," 323 44,753 42,698 Dubuquc 12,611 12,250 Flint 15,343 18,309 Fort Wayne 16,545 4,196 "i,"473 Gary Grand Rapids 116,590 Hammond, Ind 93 Indianapolis **27,"i9i' 19,000 25,197 24,440 Jackson, Mich Kaiamazoo Lansing 168 Mason City, Iowa 1,543 153 Mil vvaukce 46,975 39,104 27,807 "27," 093 24,907 Muncio, Ind 12,011 Musoatms, Iowa 1S65 Oshkosh U,557 Peoria 9,292 6,224 1,794 1,772 1,785 Kockford, 111 4,102 124 126 Sioux City, Iowa 6,027 3,210 348 3,102 South Bend » 3,802 Springfield, 111. 3,703 932 836 Waterloo, Iowa 2,665 978 820 District No. 8—St. Louis: Bc-wling Green, Ky 532 3 BrookQcld, Mo 165 1 Ghillicotho, Mo 367 368 E vansville, Ind 2,990 2,652 741 1,313 Helena, Ark. 671 12 Jacksonville, ill 717 165 187 66 Little Rock 4,822 4,137 16,365 4,316 Louisville 23,342 12,726 11,945 12,487 Memphis 23,600 11,437 Owensboro. Ky 1,118 176 161 80 Pine Bluff, Ark , 1,474 1,130 758 St. Louis 127,232 143,664 136,000 139,182 Texarkana, Ark 735 624 430 District No. 9—Minneapolis: Aberdeen 1,519 1,012 1,490 958 Bismarck 406 380 364 294 Duluth 11,153 2.840 4,048 2,624 Helena 1,526 2,709 2,141 Minneapolis 96,000 80,070 95,298 80,000 St. Paul 23,280 30,720 33,127 32,705 Superior 1,681 104 i Figures comprise debits to both individual accounts as weU as to banks' and bankers7 accounts Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
1918. FEDERAL RESERVE BULLETIN". 825 Debits to individual account. Debits to banks' and bankers' account. Aug. 15. Aug. 21. Auir. 2«. District No. 10—Kansas City: Atchison .' i 2,562 I 1,688 1,322 999 Bartlesville, Okla 2,430 ! 2,524 1,860 214 81 95 Colorado Springs 12,404 | 2,514 2,036 1.298 570 Denver 21,194 i 22,378 25,458 15,322 16', 082 18,653 Emporia, Kans 1,304 ! 1.181 11 10 Fremont, Nebr 1,021 : '745 1.133 645 809 551 Grand Island, Nebr 919 ! 901 ' 954 115 132 129 Guthrie, Okla 554 4.289 303 2.375 Joplin 3,821 3,857 3; 679 412 481 '618 Kansas City, Kans 3,685 3,516 2,782 6,264 5,006 5,524 Kansas City, Mo 102,978 98,458 79,716 #8,293 191,024 172,610 Lawrence 1,901 982 762 522 329 368 Lawton, Okla 1245 941 68 MacAlester, Okla 993 1,008 441 750 672 544 Muskogee, Okla 2,800 2,255 2,051 1,162 1,668 1, 711 Nebraska City 455 409 467 193 103 103 Oklahoma City 12,085 12,046 10,235 11,145 10,231 11,370 Omaha 56,636 56,320 58,419 52,522 47,539 81,945 Pittsburg, Kans 1,033 1,189 15 19 Pueblo 3,120 2,320 2,569 979 972 713 St. Joseph 13,288 8,660 16,858 18,863 Topeka , M,225 3,674 3,518 1,103 1,176 Tulsa 141,555 123,606 15,543 -S, 161 Wichita 1 10,668 8,581 13.476 District No. 11.—Dallas: Austin ] 12,132 i 11,484 18,026 Beaumont 3,295 3,737 2.929 279 273 ISO Dallas 17,239 32,104 22,131 31,878 37,620 49,624 El Paso 4,030 4,545 5,857 6,660 Fort Worth 12,795 26,315 Galveston 4,506 8,833 8,893 3,076 5,129 Houston 19,955 22,741 23,257 46,442 58,690 55,952 Shreveport 1,211 3,822 4,062 571 2,480 2,510 Texarkana, Tex 1,417 1,741 , 1,212 168 803 269 Waco 3,242 2,842 2,314 1,601 2,346 892 District No. 12.—San Francisco: Bakersfleld 1,273 1,395 1,100 26 11 17 Fresno 4,994 4,372 4,442 1,127 573 429 Long Beach 2,000 1,908 1,707 50 65 70 Los Angeles 44,548 27,196 17,825 24,494 Oakland i 11,932 10,559 9,967 2,640 2,109 Ogden 2,365 1,541 Pasadena 2,024 1,856 1,504 141 122 196 Portland... 35,816 35,146 39,041 20,146 20,222 22,828 Salt Lake City 13,613 Hi 638 10,933 13,229 12,498 12,857 San Diego 5,473 4,400 4,310 I 172 354 200 Seattle 40,934 48)774 41,908 17,151 17,729 17,359 Spokane 9,191 8,631 8,690 7,946 8,326 7,346 Taeoma 10,801 11,076 ; 3,707 4,013 Yakima 1,379 1,555 1,479 I 112 149 1.51 1 Figures comprise debits to both individual accounts as well as to banks' and bankers' accounts. Recapitulation shotting figures for clearing-house centers reporting for each of the three weeks. [In thousands of dollars; i. c, 000 omitted.] Debits to banks' and bankers' ac- Debits to individual account. Number count. District. of centers included. Aug. 15. Aug. 21. Aug. 28, Aug. 15. Aug. 21. Aug. 28. No.1—Boston ;• 341,298 300,241 288,819 187,564 207,406 177,954 No.2—New York '.'". '.".'. 2,805,244 2,888,713 3,187,015 1,295,179 1,445,149 1,403,569 No.3—Philadelphia 280,150 265,157 282,809 261,886 277,376 297,790 No. 4~Cleveland 98,417 101,085 103,361 44,913 46,393 46,637 No. 5—Richmond. 100,372 103.249 90,936 85,604 97,746 91,857 No.6—Atlanta !!""!!".!!!!!!"."!!!!!"!!!!!!!!!!" 90,247 103'. 325 108,173 55,064 50,630 57,575 No. 7—Chicago .... 1,283,984 831', 786 751.563 86,769 652,541 625,025 No.8—St. Louis 160,779 162,250 160;753 163,527 105,409 157,447 No 9—Minneapolis " * . 107,356 132,981 132,358 115,022 134,347 116,581 No. 10—Kansas Citv 264,784 239;561 212,945 298,538 278,527 305,503 No. 11—Dallas....; 62,997 87,304 72,824 84,015 107,341 118,104 No. 12—San Francisco 128,629 131,234 125.081 60,10C ' 62.689 63,562 Grand total 106 I 5,734,987 5,347,186 5; 519,637 2,738,181 I 3,525,554 3,459,401 NOTE.—Large difference between Chicago figures for the two earlier dates is due to the fact that figures for tho first week are not divided between debits to individual account and debits to banks' and bankers' account, the total debit to both individual and bank accounts being shown in the column headed "Debits to individual account." Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
826 FEDERAL RESERVE BULLETIN". SEPTEMBER 1,1918. Shortly after the Board undertook the de- were the total of these items known and the amount velopment of the statistical returns relating to excluded from the clearings, the figures would not then represent the actual business transacted, because a great total bank transactions, arrangements were proportion of checks and drafts are deposited in or cashed concluded with the clearing-house section of at the banks upon which they are drawn. These do not the American Bankers' Association, which for pass through the clearing house. some time past has been gathering similar It is estimated that about 4 or 5 per cent of the business figures, for consolidation of the two series of transacted in the United States is transacted through the means of actual cash or money. Checks and drafts are data on this subject in the hands of the Board used in handling the other 95 or 96 per cent. for weekly publication. The following state- Realizing the value that accurate statistics as to the ment, prepared by Mr. Jerome Thralls, secre- total volume of checks and drafts representing actual busitary of the clearing-house section, affords a ness transacted would be to the business interests, the genreview of what has already been accomplished eral public, and to the banks, the clearing-house section of the American Bankers' Association started a movement in the compilation of figures for total transover 10 years ago designed to educate the banks and actions. clearing houses to this need. For many years the statistics referred to as "bank clear- At its annual meeting, May 4,1908, at Lakewood, N. J., ings' ' have been universally regarded by business people the clearing-house section adopted the following resolution: as a true barometer of business conditions, growth, and Whereas the present method of reporting the volume of development. They have served as a basis of determining clearing-house transactions does not accurately represent the location of business houses, factories, banks, and other the volume of business transacted; now therefore be it Resolved, That we recommend that each bank report enterprises. weekly to the manager of the clearing house in its own Since the bank clearings fluctuate in practically the city the total of all checks on itself charged on its books, same proportion as does business in the various communi- excepting cashiers' checks given in payment of clearingties, they may rightfully be regarded as having much house balances. value, but they do not in any sense show the actual business Since that time the section has continuously encouraged that is transacted in a community. this idea, but was not able until 1913 to get any clearing The plan of settling balances and handling the ex- house to accumulate and report these statistics regularly, changes in the various clearing houses has not been uni- and not until the year 1916 did the section get a sufficient form. In some cases the clearings include duplications number of clearing houses to make the reports to warrant in the form of cashier's checks issued in lieu of items the figures being published. cleared and returned direct to members, because of pay- About 100 clearing houses have at different times ment thereon being refused, also include checks drawn attempted the compilation of these figures, yet only 29 against members by the clearing-house managers in settle- clearing houses have made the reports regularly and in ment of balances and which are not collected, but are car- such shape as would permit of their being published ried over and recleared on the following day. There is no quarterly. Statistics covering these 29 cities for sixway of determining what is the total of such items, but month periods are given herewith: Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
SEPTEMBER 1,1918. FEDERAL RESERVE BULLETIN. 827 Total bank transactions. Clearings. First half 1917. Seco 19 n 17 d . half First half 1918. First half 1917. Seco 19 n 17 d . half First half 1918. Atlanta. Ga 8847,901,000 81,291,824,000 SI,389,036,000 $607,039,000 §991.425,000 81,130,230,000 Cedar Rapids, Iowa.. 280,214,000 332,017,000 321,679,000 62,439,000 64,548,000 54,073,000 Cincinnati, Ohio 3,340.411,000 3,622,515,000 4,079,992,000 999,727,000 1,024,3S6,000 618,103.000 Des Moines, Iowa 819,365,000 901,075,000 1,061,408,000 213,011,000 205.756,000 256,375,000 Detroit, Mich 3,129,306,000 3,225,650,000 3,259,585,000 1,365,272.000 1,365,600,000 1,419,884,000 Fort Wayne, Ind 229,092,000 255,323,000 277,481,000 41,443,000 35,044.000 34,165,000 Grand Ramds, Mich.. 300,839.000 307,396,000 297,499,000 124,648,000 112,4(53,000 126,445,000 Hartford, Conn 434,121,000 433,373,000 476,023,000 219,210,000 196,340,000 202,465,000 Indianapolis, Ind 1,070,147,000 1,120,815,000 1,164,804,000 339,652,000 345,250,000 362,304,000 Kansas City, Mo 5,403,533,000 6,273,934,000 7,457,514,000 3,278,717,000 4,268,898,000 4,832,598,000 Los Anseles. Cal 1,381,123,000 740,615,000 756,692,000 775,670.000 722,054,000 740,591,000 Louisville, ity 1,422,796,000 1,566,720,000 2,090,336,000 508,832,000 497,989,000 622,347,000 Memphis, Tenn 1,197,141,000 1,506,336,000 1,466,218,000 270,354,000 335,577,000 310,546,000 Minneapolis, Minn.*.. 3,137,027,000 4,037,348,000 3,837,782,000 760.746,000 993,116,000 761,842,000 New Orleans, La 1,712,767,000 2,014,344,000 2,324,876,000 880,723,000 1,174,074,000 1,355,120,000 Oakland, Cal 259,180,000 284,339,000 303,738,000 131,(541,000 136,607,000 151,435,000 Omaha, Nebr 2,257,882,000 2,433,536,000 864,517,000 1,000,646,000 Providence, K. I 031,698,000 '662,374,000 73i,"359,"666" 266,351,000 279,334,000 297,594,000 Richmond, Va.* 3,336,147,000 3,457,407,000 2,135,909,000 ! 601,508,000 901,025,000 1,062,573,000 Sacramento, Cal 361,102,000 480,867,000 433,958,000 64,194,000 98,822,000 87.197,000 San Francisco, Cal.1.. 5,214,190,000 7,742,276.000 5,358,324,000 2,209,824,000 2,602,786,000 2,543,305,000 St. Joseph, Mo 1,968.958,000 1,978,688,000 3,371,171,000 383.072,000 374,788,000 463,988,000 Scranton, Pa 253,950,000 276,939.000 298,958,000 91,756,000 90,089,000 97,164,000 Seattle, Wash 1,124,421,000 1,437,702,000 1,566,109,000 508,160,000 644,024,000 806,847,000 South Bend, Ind 66,558,000 74,324.000 77,765,000 27,395,000 27,750.000 28.977,000 Spokane, Wash 384,685,000 451,163,000 415,229,000 152,523,000 1.90,292', 000 195,541.000 Stockton, Cal 80,873,000 113,403,000 94,923,000 40,224,000 52,861,000 50,197,000 Tacoma, Wash 195,359,000 245,882,000 399,864,000 70,563,000 89,355,000 109,129,000 Trenton, N. J 202,537,000 231,203,000 239,061,000 64,748,000 68,770,000 69,270,000 Total 41,043,323,000 47,499,448,000 45,687,293,000 15,923,959,000 18,889,069,000 18,791,311,000 i There will be noted a material shrinkage in both clearings and total bank transactions in Minneapolis, Richmond, and San Francisco. This is due to the fact that the clearing houses in these cities were, until about Jan. 1, 1918, including tho figures of the Federal Reserve Bank. These figures aro not included in tho first half of 1918. Total bank transactions are a true and dependable EXHIBIT A.—Statement oj total bank transactions—Clearing barometer of business conditions, growth, and develop- House Association. ment. They are of value to the individual bank because they reveal the activity of its deposits. They are of value Total debits Total debits Certificates Cashier's to the business man because they enable him to deter- C. H. No.— on individual on country of deposit checks books. books. paid. paid. mine as to whether he is keeping pace with his community and with the country at large. They are of value to the Thursday general public because they represent the history of the Friday Saturday business that is actually transacted. The clearing houses Monday that have regularly reported these figures have found that Tuesday Wednesday through the use of the plan evolved by the clearing house ————— —- -section, the figures are accumulated almost automatically. Total i They represent debits against all accounts covering individual, bank, general and savings deposits. Total debits on individual books for week... Total debits on country books for week Exhibit A is the form that is furnished by the clearing Total of certificates of deposit paid for week. Total of cashier's checks paid for week houses to their respective members and on which report Grand total The above statement is correct, is made to the clearing house manager Thursday morning for week ending Thursday. of each week, including the figures for the week ending Date Cashier. Wednesday. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
828 FEDERAL RESERVE BULLETIN. SEPTEMBER 1,1918. Exhibit B is the form used by the clearing house mana- have served as a basis of determining the location of busiger in reporting at the close of each week to the clearing ness houses, factories, banks, and other enterprises. They include many duplications, and owing to the varied plans house section of the American Bankers Association. of settlement are not entitled to the consideration they have heretofore been given. EXHIBIT B. The clearing-house section will cooperate with the Fed- .19. eral Reserve Board in its commendable undertaking and TOTAL BANK TRANSACTIONS debits against deposits in banks as earnestly requests that every clearing house comply with reported to the Clearing House Association for the week the Federal Reserve Board's call for these figures. The ending Wednesday , inclusive. 9 figures are of tremendous value and should be made avail- (Date.) able for the entire country. Fully 95 per cent of all business of the country is trans- Manager. acted through the means of checks and drafts. Under the Federal Reserve Board's plan of accumulating the total To be mailed each Thursday. To include total charges.against all bank transactions the volume of such instruments can be deposits by check, draft or charge ticket. Do not include "Certified very closely determined, thereby giving to the country a Checks," "Cashier's Checks," or any other general ledger items. barometer of business that has real merit. CLEARINGS for week ending Sincerely, yours, (Day of Week.) (Date.) JEROME THRALLS, $ Secretary. In July of this year the clearing house section started a campaign through which it hoped to get within the year at least one hundred leading clearing houses to accumulate Loans for Relief of Banks and Individuals. and report the total bank transactions direct to the section regularly. The Chicago, Cleveland, St. Louis, Milwaukee, During the latter part of July and in the Pittsburgh, Houston, Joplin, Mo., Rochester, N. Y., and a course of the month of August the War Finumber of other important clearing houses have decided to make the reports, but on learning of the Federal Re- nance Corporation, and subsequently the Treasserve Board's purpose to undertake the compilation of ury Department and the Department of total bank transactions for the entire United States, the Agriculture, took steps for the making of adsecretary of the clearing house section obtained authority vances to banks and individuals in the cropfrom the executive committee of the section to cooperate raising sections of the West and Southwest. with the Federal Reserve Board in every possible way to the end that the statistics shall be made available. Too The first step in the process of making much value can not be attached to this movement. advances to western banks, already noted in The clearing house section includes in its membership the FEDERAL RESERVE BULLETIN for August, every organization in the United States that can rightfully was announced in a statement issued to the be termed a clearing house association. There are 229 press by the War Finance Corporation on July such organizations. The section has sent a letter to the 23, as follows: clearing house managers, urging them to comply with the Federal Reserve Board's request to obtain these figures The board of directors of the War Finance from the clearing house banks, and transmit the totals at Corporation announced to-day that at the the close of each week to the Federal Reserve Agent of suggestion of Secretary McAdoo it had wired their respective districts. the Federal Reserve Banks of Dallas, Kansas The letter referred to is as follows: City, and Minneapolis, requesting them to notify the banks and trust companies in their AUGUST 28, 1918. To clearing-house managers. respective districts, nonmembers as well as GENTLEMEN: The Federal Reserve Board recently de- members of the Federal Reserve system, of termined to undertake to accumulate the total bank trans- the willingness of the War Finance Corporaactions for the entire United States. tion to make advances, under section 7 of The clearing-house section evolved a plan for the reportthe War Finance Corporation Act, to banks ing of these figures and has made determined effort for several years to put it into general operation. About 100 and trust companies which had made loans to clearing houses have at different times attempted to com- farmers and cattlemen. pile total bank transactions, but only 30 of these have made It is hoped that this measure will enable their reports with regularity. In these 30 cities the figthese institutions to extend credit freely both ures have proved of tremendous value to the officers of the individual member banks, to the clearing houses, and to farmers and cattlemen whenever necessary to the business public. to insure the preservation of these essential There is a growing need for information which will industries, in localities where droughts have truly reflect the actual business that is transacted throughseriously impaired their productivity. out the country. Bank clearings, although representing possibly not over one-third of the total volume of business, Under the terms of the War Finance Corhave been regarded as a barometer of much value. They poration Act, these advances are limited to Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
SEPTEMBER 1,1918. FEDERAL EESEEVE BULLETIN. 829 75 per cent of the amount of the loans made Acting upon the urgent representations that by the borrowing institution, or to 100 per many wheat growers in certain sections of the cent in case the borrowing institution itself West who have lost two successive crops by furnishes additional collateral to the extent winterkilling and drought have exhausted their of 33 per cent of the advance. Such advances resources and may be compelled to forego fall will be made by the War Finance Corporation planting and, in some cases, to abandon their upon written application through the several homes unless immediate assistance is extended, Federal Reserve Banks, acting as its fiscal the President, on Saturday, July 27, placed at agents, but only after consideration of their the disposal of the Treasury Department and recommendations, upon the promissory note of the Department of Agriculture the sum of the borrowing institution, secured by the ob- $5,000,000 to enable them to furnish aid to that ligations of the farmers and cattlemen to extent. The two departments are already which loans have been made by the borrow- actively at work formulating plans for making ing institutions, together with any security loans under this authorization, and complete taken for such obligations. details will be announced within the next few days and operations begun, The following is quoted from Secretary It may be stated generally that the Federal McAdoo's telegram to Gov. Harding: land banks in the districts affected will be " Droughts in Montana, parts of North Da- designated by the Secretary of the Treasury as kota, Kansas, and Texas are creating a serious the financial agents of the Government to make situation for the farmers there, involving pos- the loans and to collect them. The Departsible abandonment of farms and sacrifice of live ment of Agriculture, through its special offistock. I think that effective assistance can cers, including the county agents, will ascertain be rendered by the War Finance Corporation. the needs of the individual farmers and deter- This corporation was created to help finance in- mine the feasibility of the planting. dustries essential to the war, and 1 know of no The primary object of this fund is not to industry more vital to the war than that of rais- stimulate the planting of an increased fall ing wheat, corn, live stock, and other food prod- acreage of wheat or rye in the severely affected ucts. Aid should be extended by the War Fi- drought areas, or even necessarily to secure the nance Corporation to the farm industry and to planting of a normal acreage, but rather to every other industry which is vital to the prose- assist in tiding the farmers over the period of cution of the war. I think the War Finance the stress, to enable them to remain on their Corporation should make loans to national and farms to plant such an acreage as may be de- State banks on farmers7 paper. This would termined to be wise under all the conditions enable all national and State banks to extend with a view to increase the food supply of the loans to deserving farmers, with full knowledge Nation and to add to the national security and of the fact that such paper can and will under defense. It is distinctly not intended to be the terms of the act be taken by the War used to stimulate the planting of wheat or any Finance Corporation. I am sure that the other grain where such planting is not wise Department of Agriculture will be glad to from any agricultural point of view and where cooperate in the same direction through the other activities are safer. agents and agencies of that department." It is not intended that this fund shall be used to make loans to farmers who have banking collateral and can otherwise secure loans. JOINT ACTION ON FARM LOANS. The recent action of the War Finance Corpora- Joint action on the part of the Treasury tion, indicating its willingness to make advances Department and the Department of Agriculture to banks and trust companies which have made loans to farmers and cattlemen, should ease was undertaken just at the close of the month the general financial situation and in large measof July, in the exercise of powers placed in the ure enable bankers to extend accommodations hands of these departments by the President, to farmers having such collateral. Banks are who put at their disposal the sum of $5,000,000 urged to a^ail themselves of the offer of the War Finance Corporation. as a basis for direct loans to farmers. This fund, because of its limited amount, The following statement was given out by will be used necessarily principally in connecthe Treasury Department and the Department tion with the fall planting of wheat or of preof Agriculture on July 30: ferred substitute grain in the areas involved. 78653—IS 5 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
830 FEDERAL RESERVE BULLETIN. SEPTEMBER 1,1918. This will not exclude consideration of cases of loan associations and other local farmers orindividuals who do not intend to, or who can ganizations, will investigate each application. not, engage in fall seeding who might other- Applicants must agree to use seed and wise be compelled to abandon their homes and methods approved by the Department of make great sacrifices, provided sufficient funds Agriculture, and the money will not be are left after considering the pressing fall plant- advanced until the crop is planted and a reping needs. resentative of that department certifies to the The loans will probably not be made for Federal land bank that the applicant has more than $3 an acre, and it is likely that a completed his planting in proper manner and maximum of 100 acres in some localities and with proper seed. Upon the receipt by the of 150 in others will be established. In addi- Federal land bank of such certificate, applicant tion to paying a reasonable rate of interest, will be required to give note and chattel morteach farmer will be required to contribute to gage on the crop planted. an insurance fund out of the proceeds from the In order to give applicants a basis for temsale of his crops if his operations are suc- porary credit, to assist in obtaining the seed, cessful. the Department of Agriculture will promptly investigate all applications, and as soon as POLICY OF LOANS. approved the Federal land bank will issue a Further explanation of the plan of render- statement of approval to the effect that the money will be advanced when the crop is ing aid direct to farmers was afforded in a planted and the necessary certificate and note more complete statement of policy which was and mortgage are executed and delivered. issued by the Treasury Department and the The machinery of the Treasury Department Department of Agriculture jointly on August and the Department of Agriculture for this 1, 1918. The statement in question reads as work is already in existence and will be put in motion at once, and no substantial delays follows: will result if the interested communities do This statement should be read in connection their own part promptly. with that issued on July 29. The areas now Banks wishing to assist their communities under consideration are those in the Northin this matter should at once communicate west and Southwest where two successive crop with the Federal land bank of their district. failures have resulted from severe drought and The plan is to assist only those who have winter-killing. exhausted their resources. No loan will be The money will be advanced as a loan in made to any farmer who has unincumbered cases of necessity upon the crop of wheat or real or personal property sufficient to secure a substitute grains planted. No loan will be loan of $300. In such cases country banks made in excess of $3 per acre, and no applicant are urged, as a matter of public service, to will be financed beyond one hundred acres. render assistance and avail themselves of the Therefore, no loan will be made in excess of facilities of the Federal Reserve Banks and $300. Notes given will bear 6 per cent in- the War Finance Corporation, which are preterest payable in the southern districts Oc- pared to render support to such efforts. tober 1, and in the northern districts No- Each borrower will be required, as a part of vember 1, 1919. his contract, to agree that, if his yield is 7 The Federal land banks of the districts em- bushels per acre, or more, he will pay into a bracing the affected areas will be designated guaranty fund a sum equal to 25 per cent of by the Secretary of the Treasury as the finan- the amount loaned him to cover any losses that cial agents of the Government to make and may occur. If the amounts so contributed collect the loans. They will expect the co- exceed the actual loss by the Government, the operation of local banks in the taking of ap- excess will be returned pro rata to the plications, forms of which will be supplied on contributors. request, as soon as they can be printed. Banks and other local agencies assisting will LOANS ON LIVE STOCK. be asked to contribute their services for the Direct loans to individuals, firms, or corpogood of their several communities. rations engaged in the raising of live stock were The determination of the question of making each loan will, in the first instance, rest determined upon and the fact announced on with the Department of Agriculture, which, August 13, when the Secretary of the Treasury through its various agencies, assisted by farm stated— Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
, 1918. FEDERAL KESEKVE BULLETIN. 831 "that the War Finance Corporation would 125 per cent of cost value of goods, form the make direct loans to individuals, firms, and basis of collateral to secure the respective loans to canners. The warehousing company is corporations whose principal business is the managed by 11 of the most representative raising of live stock, including cattle, sheep, and well-known canners of New York State. goats, and hogs. The live-stock industry, and The arrangement provides that every canner particularly breeding stock, in some parts of the in the State can avail himself of the facilities, country is suffering great hardship by reason afforded, and no canner will be refused relief if he is worthy of it and has the required of excessive drought conditions, and cattlemen security. are experiencing great difficulty in feeding and The canning industry of New York State is a protecting their cattle. The action of the large one, particularly active in the northern, corporation is intended to relieve this situation. section of the State. In their application for The loans will be made directly to the bor- aid the canners stated that in the last two seasons, when the crops were light, only a comrowers under section 9 of the War Finance paratively small amount of funds was required, Corporation Act. That section authorizes adwhile the present season's crop is a large one. vances to be made in exceptional cases directly, Furthermore in responding to the needs of the without the intervention of banks, to borrowers times the canners have extended their acreage whose operations are necessary or contrib- and enlarged their production. They stated also that the amount of money they have been utory to the prosecution of the war. able to procure from the banks with which they «* * * Temporary organizations will be deal is entirely inadequate to enable them to immediately created for passing upon the continue their business and save these perishable applications for loans as submitted. It is food products; that the cost of containers and not proposed at the present time to establish other expenses have increased; that the situation was precarious and a serious food loss was agencies except at Dallas and Kansas City. threatened, and that aid, to be of real value, Applications from stock raisers operating in had to come quickly as otherwise a large the Atlanta and Richmond Federal Reserve amount of perishable food products would be districts will for the present be handled by lost, to the great detriment of growers, canners, the Federal Reserve Bank at Dallas, and appli- and the consuming public, as well as our soldiers overseas. cations from stock raisers operating in the The attitude of the War Finance Corporation San Francisco, Minneapolis, and St. Louis has already relieved the situation and has districts will be handled at Kansas City. averted the serious food loss with which the Applications from other districts will be made canning industry of New York was confronted. to the corporation direct in Washington." The comprehensive plan under which this relief is given was suggested to the canning industry by the War Finance Corporation. Its LOANS TO CANNERS. main feature is a carefully controlled system Loans to the canning industry through the of warehousing goods at the respective canning machinery of the War Finance Corporation plants, so that the necessary adequate security may be obtained for the money advanced, as were arranged and the outline of the plan given required by the War Finance Corporation Act. to the public on August 17, as follows: The War Finance Corporation announces FINAL DETAILS. that it has effected an arrangement for extending financial assistance to the canners of New Final details of the plan for lending to in- York State. This action insures the harvesting dividuals, firms, and corporations engaged in and preservation of this season's crop of spin- the raising of live stock were completed and ach, peas, tomatoes, corn, and other vegetables, announced on August 19, by the Secretary of as well as a great variety of small fruits. the Treasury in a statement "that the War A warehouse company has been organized Finance Corporation had perfected its plans by the canners with paid-in capital of $100,000. This warehousing company issues receipts for for making direct loans under the provisions goods stored, which receipts, to the extent of of section 9 of the War Finance Corporation Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
832 FEDERAL EESERVE BULLETIN. SEPTEMBER 1,1918, Act to individuals, firms, and corporations Fordyce, of the War Finance Corporation, whose principal business is the raising of live will leave Washington Wednesday evening for stock, including cattle, sheep, goats and hogs. Kansas City, where they will consult and con- "The Corporation has decided to create, fer with representative bankers and cattlemen under authority of the act, two agencies, one in the two districts concerned." at Kansas City and one at Dallas. These agencies will be known as the cattle loan agencies of the War Finance Corporation and Foreign Exchange. their business will be confined entirely to the consideration of applications for direct loans Below are printed (1) questionnaire sent out to cattlemen. All applications from banks by Senator R. L. Owen, chairman of the Senate for advances for crop-moving purposes and Committee on Banking and Currency, in conother purposes will be received as heretofore nection with S. 3928, providing for the estabby the Federal Reserve Banks acting as lishment of a Federal foreign exchange bank, fiscal agents for the corporation. and (2) data obtained in connection with an "Each of the two cattle loan agencies will investigation made in compliance with a Senbe conducted by a cattle loan committee, one ate resolution calling for the volume of transwith headquarters at Kansas City and the actions and profits earned in certain neutral exother at Dallas, of which committees the changes: Federal Reserve agent and the governor of the respective Federal Reserve Banks will be (l) EXCHANGE QUESTIONNAIRE. members. Five additional members of each committee will be appointed by the War UNITED STATES SENATE, Finance Corporation. The cattle loan com- COMMITTEE ON BANKING AND CURRENCY, August 1, 1918. mittees will in turn create such local organiza- DEAR SIR: Attached hereto is a brief statement of the tions as may be necessary to carry the plan proposed Federal reserve foreign bank, its organization, into execution. All applications for direct and purpose. cattle loans must be made through the cattle Will you be good enough to answer the following questions, and oblige, loan agencies which will refer such applica- Yours, very respectfully, tions as they approve to the War Finance ROBT. L. OWEN, Corporation for final approval. Chairman, "Only two cattle loan agencies will be established, and applicants residing in the Federal QUESTIONNAIRE TO IMPORTERS AND EXPORTERS. Reserve districts of San Francisco, Minne- 1. Would it serve your interest as an importer or exapolis, St. Louis, and Kansas City, will send porter to have established a Federal reserve foreign bank their applications to the cattle loan committee through which you could obtain credit information with of Kansas City and those residing in the Fed- regard to foreign buyers and sellers, and conditions ot shipment of exports and imports such as insurance, storeral Reserve districts of Dallas, Atlanta, and age, etc.? Richmond will send their applications to the 2. Would it serve your interests to have, through such cattle loan committee of Dallas. Cattle men an institution, international exchange stabilized on a residing in other districts, who may have occa- basis of reasonable compensation for service rendered and sion to make application, will communicate the American dollar maintained at commercial par? direct with the War Finance Corporation at 3. Would it serve your interests to have such a bank Washington. serve as an intermediary to place international commercial acceptances, through the Federal Reserve system, "In order to expedite the formation of the in the principal banks of the United States? cattle loan committees and other details of 4. Do you get accommodations as low as the British organization, Directors Clifford M. Leonard merchants—%\ per cent per annum—on international and Angus W. McLean, and counsel S. W. acceptances? Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
SEPTEMBER 1,1918. FEDERAL EESEBVE BULLETIN. 833 5. Do you favor establishing the Federal reserve foreign furnished them, a copy of which is shown also in bank? If you do or if you do not, will you please give the BULLETIN. your reasons? On June 26 the following instructions were sent to 73 banking houses: Firm name. DEAR SIRS: A resolution was recently adopted by the By. Senate as follows: City State. "Resolved, That the Secretary of the Treasury is hereby directed to advise the Senate of the amount severally of STATEMENT. commercial and financial bills payable in terms of the The Federal reserve foreign bank proposed is intended currency of the neutral nations of Europe which have been to begin with a capital only sufficient for a'new establish- bought and sold severally by the member banks of the ment of this character, leaving open the]expansion|of the Federal Eeserve system and other banks and banking capital as the needs of the American commerce require. houses dealing in foreign exchange in the city of New York It will be controlled by the Federal Reserve Board and from January 1 to April 1,1918, and the amount of profit in a board of directors representing the Government of the such transactions, and to advise the Senate what steps have United States. Thus, the bank would have no selfish been taken to protect the par value of the American dollar interest to serve, but would have exclusively the interests in the neutral countries of Europe, and what is the amount of the American commerce at heart and would, because of foreign balances held in the United States at this time of its constitution, cooperate with other banks and bring by such neutral nations." into the service of commerce on fair terms the full banking The Secretary of the Treasury has requested the Federal powers of the United States. At present Lombard Street, Reserve Board to obtain this information through the divihaving a gigantic available capital representing the banks sion of foreign exchange. We will have to ask you, thereof the whole world, will extend credits at 3J per cent, and fore, to fill out the inclosed form and return to us. While a number of American banks are using Lombard Street a reasonable time will unquestionably be allowed for the for the accommodation of their own customers, thus paying preparation of the figures, yet they should be turned in to an interest abroad and keeping in London a business which the division of foreign exchange as quickly as possible. should be kept in the United States. Very truly, yours, Attached hereto is a copy of the bill, subject to amend- (Signed) FRED. I. KENT, ments, found advisable. Director, Division of Foreign Exchange. It is believed that this bill, if enacted into law, will serve to stabilize the American dollar and make the dollar EXPLANATION OF FORM FOR USE IN CONNECTION WITH a standard measure of value in international contracts, EXCHANGE PROFITS ON NEUTRAL COUNTRIES. and therefore very greatly promote American commerce, the value of which is always measured primarily in terms As the Senate resolution specifically requires profits on transactions covering the purchases and sales of comof dollars. mercial and financial exchange in the currencies of the The policy of Great Britain of keeping her currency at neutral countries of Europe, it will be necessary to consider par is well known to everybody, and it is believed that such portion of all balances in the neutral countries of the American dollar can be kept at par only by having a Europe as were carried over from 1917 where sales were publicly managed institution with this duty imposed upon made against them between January 1 and April 1. For it. The shipping of gold back and forth across the ocean the sake of uniformity it is desired that the same rates of is an economic waste and could be avoided by this bank. exchange be applied as the purchasing value of such balances, and rates for this purpose have been decided (2) EARNINGS ON EXCHANGE WITH NEUTRAL upon as follows: Denmark, 31}; Holland, 44J; Norway, 33; EUROPEAN COUNTRIES. Spain, 24.50; Sweden, 34J; Switzerland, 4.34. In case more exchange has been purchased during the The July issue of the BULLETIN printed a period than has been sold, it is desirable that the value of letter addressed by the Secretary of the Treasthe balance remaining be figured by all those concerned ury to the President dealing with the foreign at the same rate. Rates for this purpose have been exchange situation. Section 2 of that letter decided upon as follows: Denmark, 31J; Holland, 46}; advised the President that the banks in New Norway, 32; Spain, 25}; Sweden, 34; Switzerland, 4.30. In purchases of exchange, commercial and financial bills York City which dealt in neutral European are to be divided as follows: All bills of exchange drawn exchange had been requested to furnish inforagainst exports of commodities from the United States mation covering their transactions from Janu- are to be considered as commercial bills, and all other ary 1 to April 1, 1918, as prescribed on forms exchange purchased as financial bills. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
834 FEDERAL RESERVE BULLETIN". SEPTEMBER 1,1918. In sales of exchange, commercial and financial bills are The net balance in Norway on January 1 to be divided as follows: All sales of exchange in payment was about 25 per cent of the sales made during of imports to the United States are to be figured as comthe three months following. This balance mercial bills, and all other exchange sold as financial bills. was cleared and a small overdraft shown at the Deductions for interest must be made on time bills purchased at exact rates at which they were discounted, or close of the period. Norwegian exchange rates at which discount is expected in cases where advices dropped steadily, with the result that the have not been received. When such bills were allowed balance had been taken over at a higher rate to run before discount, or until maturity, the rate of than it was sold. The average rates for the 5 per cent per annum must be used in figuring deductions. items shown indicate that all the profit was The rate of 5 per cent must also be used in covering loss earned through finance bills. of the use of the funds. Deductions for. overhead charges should be figured as Swedish exchange rendered a profit both on follows: The total overhead charges of the foreign exchange finance and commercial bills. The commercial department should be divided in such manner as to show bills furnished a very good profit. The balance the proportionate amount represented by the transactions on January 1 and the overdraft on April 1 of each neutral European country. Such amount should were both figured at a higher average rate than be deducted from the gross profits of the respective countries. the bills were sold. The calculated annual rate Taxes.—As the tax rate for 1918 can not be determined, on total purchases was 0.055 per cent for gross taxes should be deducted on the basis of the 1917 rate. profits and 0.046 per cent for net profits. There Every institution has undoubtedly figured the percentage was a one-fourth point drop in Swedish kronor of taxes paid in 1917 to the profits, and this percentage for the period. should be used in making the deduction. Earnings on Danish exchange were very RESULTS OF INQUIRY. small, amounting to 0.02 per cent for gross As a result of this request, reports were profits and 0.007 per cent for net profits. The received showing accounts with Norway, 26; fact that the balance was figured at a higher Sweden, 24; Denmark, 25; Holland, 39; Spain, rate than the bills were purchased accounts 37; and Switzerland, 48. for about one-fourth of the profit shown. The The returns indicate that exchange dealings close of March saw this exchange down onewith Norway, Sweden, Denmark, Holland, and fourth point from January 1. Switzerland rendered gross profits, while the Guilders advanced 2f points from the be- Spanish transactions resulted in a gross loss. ginning to close of the period. The rate at After making deductions for discounts on long which the balance was figured accounts for bills, interest, commissions, etc., overhead about one-fifth of the gross earnings. Both charges, and taxes it was found that Norway, finance and commercial bills show profits. Sweden, Denmark, and Holland showed net Calculated annual rates of earnings on total profits and that Switzerland and Spain showed purchases show gross profits 0.063 per cent net losses. and net profits 0.041 per cent. The demand for Norwegian, Swedish, and From a net balance of $775,000 at the begin- Spanish exchanges was greater than the supply, ning of the year, peseta accounts fell to an overwhich resulted in changes from balances at the draft of $603,000 on April 1. Pesetas advanced beginning of the year to overdrafts on April 1. li points during the period. The returns The balances with Denmark and Switzer- indicate that there was a loss on finance land, at the beginning of the year were in- bills while commercial bills furnished a good creased as the purchases of exchange exceeded profit. the sales. On January 1 there was a net over- Swiss francs strengthened slightly during draft with Holland which changed to a net the three months. The gross profits shown balance on April 1, which was the largest held were due chiefly to the earnings on commercial in any neutral European country. bills. These earnings were slightly increased Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
SEPTEMBER 1,1918. FEDEEAL RESERVE BULLETIN". 885 by the profit derived from the rate at which calculated on an annual basis show a gross the balance was figured and they were reduced profit of 0.008 per cent and net losses of 0.002 through the loss on finance bills. Earnings per cent. Profits or losses, first quarter, 1918—Exchange purchased and sold—European neutral countries. NORWAY. Purchases. Sales. Deductions. Dis- Profit Classification. c F u o rr r e e n ig c n y. Dollars. c F u o rr r e e n ig c n y. Dollars. o p G r r r o l o o f s s it s s. in c b l t o o e i u l r n l n e g s s t , , t, O c v h e a r r h g e e a s. d d t a e i f o d t n e u r s c . - Taxes. N o e r t l p o r s o s f . it commission, etc. Portion of 1917 balance used 5,413,795.96 1,786,552.66 164,012.14 i 21,123.98 Financial bills. 15,208,720.87 4,813,682.12 20,727,009.61 6,796,894.38 Commercial bills 478,450.15 155,791.05 416,640.72 132,895.74 Unsold balance purchased during period.. 1 975,456.52 1312,146.08 868,761.03 278,002.68 Total 22,076,423.50 7,068,171.91 22,076,423.50 7,228,916.78 $160,744.87$1,294.55 $10,966.59$148,483.73 $374.96$148,108.77 SWEDEN. Portion of 1917 balance used 1,904,788.16 652,389.94 1976,097.45 1334,313.37. Financial bills 18,519,625.88 6,128,199.08 20,706,163.67 6,943,765.18;. Commercial bills 226,106.39 75,537.50 766,625.41 292,026.44. Unsold balance purchased during period.. 11,989,423.82 1676,404.09 191,057.72 64,959.60|. Total. 22,639,944.25 7,532,530.61 22,639,944.25 7,635,064.59j$102,533.98 §4,206.70 §8,949. 1,377.42; 82,847.52 $86,529.90 DENMARK. Portion of 1917 balance used 254,953.81 80,924.46 1201,814.97 164,076.25 Financial bills. 6,849,614.84 2,111,665.86 6,016,656.42 1,859,108.21 Commercial bills 174,914.98 52,491.40 280,668.88 87,953.71 Unsold balance purchased during period.. i 398,860.44 U25,641.04 1,179,203.80 371,452.55 Total 7,678,344.07 2,370,722.76 7,678,344.07 2,382,590.721 Sll,867.96 $871.20 §5,637.56 $5,359.20 $1,155.08 $4,204.12 HOLLAND. Portion of 1917 balance used 240,925.66 106,168.05 i 245,185.83 1108,188.25! Financial bills 20,888,974.14 9,267,826.02 15,911,411.92 7,128,374.94; Commercial bills 2,149,410.60 939,444.07 3,462,123.28 1,531,144.43 Unsold balance purchased during period.. 1762,430.42 1355,835.20 4,423.019.79 2,067,761.71 Total. 24,041,740.82 10,669,273.34 24,041,740.8210,835,469.33:$166,195.99 $6,821.78 $31,414.49:$127,959.72,$17J 649.59 $110,310.13 SPAIN. Portion of 1917 balance used 4,767,166.25 1,167, 11,603,452.63 1392,845.86 Financial bills 65,625,903.1416,082,751.59 69,417,962.86 16,892,210.96 Commercial bills/. I 3,245,647.391 796,346.79 4,960,857.34 1,349,800.32 Unsold balance purchased during period.. 12,845,294.701 1732,663.36 501,738.65 129,183.46 Total. 76,484,011.4818,779,654.23 76,484,011.4818,764,040.60 2 $15,613.63 $7,040. Olj $24,880.65j2$47,534.29$4,044.512 $51,578.80 SWITZERLAND. Portion of 1917 balance used 2,039,995.82 469,851.65 1 50,755.26 111,639.36 Financial bills 71,102,421.0515,997,471.10 70,216,187.60155,,794,390.79 Commercial bills 8,824,015.52 1,941,879.85 9,298,511.85 2,081,461.20 Unsold balance purchased during period.. 11,959,478.96 1455,677.25 4,360,456.64 1,015,059.42 Total. 83,925,911.3518,864,879.85 83,925,911.35 18,903,550.77 $38,670.92 $6,615.93] 332,243.50 2 «188.51 $10,073.08^ $10,261.59 1 Overdraft. «Loss. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
836 FEDERAL RESERVE BULLETIN. SEPTEMBER 1, 1918. Average rates derived from figures given in profit or loss tables. Norway. Sweden. Denmark. Holland. Spain. Switzerland. ch P a u s r e - s. Sales. ch P a u s r e - s. Sales. ch P a u s r e - s. Sales. ch P a u s r e - s. Sales. ch P a u s r e - s. Sales. ch P a u s r e - s. Sales. Portion of 1917 balance used 33.00 33.00 34.25 34.25 31.74 31.75 44.06 44.125 24.50 24.50 4.34 4.36 Financial bills 31.65 32.79 33.09 33.53 30.82 30.90 44.37 44.80 24.5067 24.334 4.44 4.45 32.56 31.71 33.41 38.09 30.01 31.34 43.71 44.23 24.536 27.209 4.54 4.47 Unsold balance purchased during period 32.00 32.00 34.00 34.00 31.50 31.50 46.67 46.75 25.75 25.75 4.30 4.30 Total 32.02 32.74 33.27 33.72 30.87 31.03 44.38 45.07 24.55 24.53 4.45 4.44 Monthly ranges of exchange rates on leading foreign money centers, quoted in New York during the three months ending March, 1918. January. February. March. Exchange at par. Low. High, Low. High. Low. High, Norway dolls, for 100 krones. 26.80 31.50 30.75 32.50 30.125 32.25 Sweden do... 26.80 34.25 32.25 33.50 31.75 34 •$ Denmark do... 30.25 31.75 30.50 31 30 31.75 2 Holland dolls, for 100 florins. 40.20 43 44.25 44 45.50 44.75 46.75 Spain dolls, for 100 pesos. 518.1347 24 24.40 24 25.25 24.30 Switzerland francs for 100 dolls. 518.1347 450 435 451.50 446 448 431.50 FOREIGN EXCHANGE RATES. (2) Rates on markets in neutral countries in Europe and South America. Quotations are In the tables below and accompanying dia- given on Amsterdam, Copenhagen, Stockholm, grams an attempt has been made to present in Zurich, Madrid, Buenos Aires, and in Chilean a uniform manner the changes in exchange markets on New York. It will be noted that rates since the outbreak of the war. The ma- rates on the two Scandinavian centers in genterial used for the tabulation and the diagrams eral move in sympathy, the higher level of the is made up chiefly of quotations published in Swedish rate having become more pronounced previous issues of the FEDERAL RESERVE BUL- since August, 1916. In the case of the rates LETIN. These data have been arranged under on Buenos Aires, the par value of the paper three main heads: peso was taken at the officially fixed rate of 44 (1) Exchange rates on markets in belligerent per cent of the gold peso (96.5 cents gold), or countries, both of the allied group and of the 42.46 cents. In the case of the rates on New central powers. Quotations for the first group York in Chilean markets, the average value of include rates on London, Paris, Milan, Yoko- the paper peso during the first six months of hama, Rio de Janeiro, and Petrograd. For the 1914 was taken as a base from which to measlatter group rates are given on Berlin and ure subsequent variation. Vienna. The latter rates are two fold: (3) Rates on markets in silver standard (a) New York quotations for the period July, countries. The markets chosen were Bombay, 1914, to April, 1917, the date of the entrance in India, Shanghai, the principal neutral finanof the United States into the war, cial and commercial market in the Far East, (b) Swiss quotations on Berlin and Vienna and Hongkong, the most important transfor the entire period June, 1914, to June, 1918. shipping point in that part of the world and It will be noticed that both American and under the political and financial control of the Swiss quotations show that the rates on Vienna British Government. It will be noted that, move in close sympathy with the rates on while the quotations of the latter two markets Berlin. move more or less in sympathy with the price Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
SEPTEMBER 1,1918. FEDERAL RESERVE BULLETIN". 837 of silver, in the case of India adherence to the tation necessitated the reconversion of quotagold exchange standard has resulted in com- tions of rates on Paris, Zurich, and Milan, and parative stability of the rate throughout the of the Chilean rates on New York, and their entire period, a rise having occurred only since restatement in terms of United States money. August, 1917. In consequence of the recent It is easily seen that this is the only mode of arrangement for credits with which to supply presentation which permits of any fair comrupee exchange, rates for telegraphic transfers parisons of the upward or downward course of have been fixed to move in consonance with exchanges on the various markets. Some diffi- London rates. The minimum rate, which had culty was experienced in choosing a basic quopreviously been 33.50, was fixed on April 11 at tation for the silver-standard countries. The 35.75, while on June 18 the rate was stabilized basic figure chosen was the average price of at 35.73. silver in London for the calendar year 1913 The rates used for the compilation and dia- (60.458 cents per ounce, British standard, 0.925 grams represent the high rates quoted during fine). The par for sterling, namely $4.8665, each month, all expressed in percentages of the has been employed in these calculations. On American equivalents of the par or mint values this basis the average 1913 values of the Hongof the respective monetary units, with the ex- kong dollar and the Shanghai tael were figured ception of the Swiss rates on Berlin and and these values, 47.16 and 65.49 cents, re- Vienna, which represent quotations at the close spectively, were used as the basis for calcuof the month expressed in percentages of the lating the percentages shown in the tabulation par values of the Swiss equivalent of these and plotted in the diagram. To complete the monetary units, and of the Chilean rates on analysis of the course of Far Eastern exchange New York, which represent average monthly since the outbreak of the war, there have been rates for the Chilean paper peso in terms of added figures and curve indicating the course sterling, converted into dollars at the prevailing of the silver price in London for the period dollar rate for sterling. This method of presen- under review. Movement of exchange rates (highest rates for sight drafts during month) in New York on principal financial centers during ' period from June, 1914, to July, 1918. 1. RATES ON MARKETS IN BELLIGERENT COUNTRIES. London ; Paris Milan Yokohama Rio de Janeiro Petrograd Berlin Vienna (4.8565-100). j (19.3-100). (19.3=100). (49.85=100). (32.444=100). (51.5=100). (95.2=100). (20.3=100). 1914. Per et.\ \Per ct. iPer ct. Per ct. Per ct. Per ct, Per ct. Per ct. June $4,891 100.50 JS19.42 11 0an0 .6a2n IS19.37 J100.36 JS49.90 100.10 S51.56 100.12 S95.44 100.25 S20.32 100.10 July 5.50 113.02 ! 21.74 112.64 20.41 jlOo.75 49.90 100.10 51.56 100.12 96.25 101.10 20.37 100.34 August 5.56 114.25 19.61 101.61 20.41 J105.75 51.12 99.26 97.00 101.89 20.37 100.34 September 5.0625 104.03 19.80 102.59 19.05 j 98.70 97.00 101.89 October 4.98 102.33 19.80 102.59 19.34 100.21 48.00 93.20 94.25 99.00 19.87 97.88 November 4.90875 100.87 19.63 101.71 18.80 I 97.41 48.00 93.20 88.62 93.09 17.87 88.03 December 4.8925 100.53 19.57 101.40 19.12 | 99.07 43.00 83.50 92.50 97.16 18.00 88.67 1915. January 4.85375 99.74 ! 19.35 100.26 18.78 97.31 43.50 84.47 88.37 92.83 17.50 86.21 February 4.8493 99.65 !19.30 100.00 18.52 95.96 44.87 87.13 87.31 91.71 17.35 85.47 March 4.8125 98.89 I 19.01 98.50 17.70 91.71 44.50 86.41 84.25 88.50 15-87 78.18 April 4.80 98.63 i 18.81 97.46 17.33 89.79 49.38 99.06 44.50 86.41 82.87 87.05 15.55 76.60 May 4.80 98.63 18.81 97.46 17.38 90.05 49.38 99.06 41.75 81.07 83.25 87.45 15.70 77.34 June 4.7856 98.34 18.40 95.34 16.93 87.72 49.40 99.10 39.75 77.18 82.87 87.05 15.18 74.78 July 4.77125 98.04 18.07 93.63 16.50 85.49 49.38 99.06 38.00 73.79 82.25 86.40 15.18 74.78 August 4.7625 97.86 17.71 91.76 16.05 83.16 49.38 S9.06 37.00 71.84 82.50 86.66 15.20 74.88 September 4.73 97.20 17.35 89.90 16.18 83.83 49.25 98.80 $23.70 73.06 35.75 89.42 84.25 88.50 15.55 76.60 October 4.725 97.09 17.35 89.90 16.08 83.32 49.50 99.30 23.81 73.40 35.50 68.93 84.25 88.50 15.55 76.60 November 4.71375 96.86 17.18 89.92 15.55 80.57 50.00 100.30 23.75 73.21 33.75 65.53 81.87 86.00 14.70 72.41 December 4.7 12? 97.43 17.21 89.17 15.35 79.53 50.50 101.30 23.62 72.81 32.75 63.59 79.75 83.77 14.10 69.46 1916. January. 4.78 98.22 17.15 88.86 15.27 79.12 50.50 101.30 23.50 72.44 30.00 58.25 76.75 80.62 12.92 63.65 February., 4.76t25 97.94 17.08 ! 88.50 14.95 77.48 50.38 101.06 23.25 71.67 32.37 62.85 77.50 81.41 15.00 73.89 March 4.765 97.91 17.02 I 88.19 15.38 79.69 50.25 100.80 23.62 72.81 32.50 63.11 73.37 77.07 13.00 64.04 April 4.765 97.91 16.86 ! 87.36 15.85 82.12 50.25 100.80 23.00 70.90 32.00 62.14 76.50 80.36 13.62 67.09 May 4.7625 97.86 16.90 | 87.56 16.13 83.58 50.38 101.06 24.50 75.52 31.62 61.40 78.12 82.06 13.50 66.50 June 4.75875 97.79 16.95 87.82 15.75 81.61 50.50 101.30 24.50 75.52 33 .80 9.81 j 77.12 81.01 13.25 65.27 78653—IS -3 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
838 FEDERAL RESERVE BULLETIN. SEPTEMBER 1,1918. Movement of exchange rates {highest rates for sight drafts during month) in New York on principal financial centers during period from June, 1914, to July, 1918—Continued. 1. RATES ON MARKETS IN BELLIGERENT COUNTRIES—Continued. London Paris Milan Yokohama Rio de Janeiro Petrograd Berlin Vienna (4.8665=100). (19.3=100). (19.3=100). (49.85=100). (82.444=100). (51.5=100). (95.2=100). (20.3=100). 1916. Per ct. Per ct. Per ct, Per ct. Per ct. Per ct. Per ct. Perct. July $4.75875 97.79 $16.93 87.72 S15.68 81.24 850.50 101.30 $24.76 76.33 $30.80 59.81 $74.50 78.26 $12.80 63.05 August 4.75875 97.79 16,98 87.98 15.47 80.16 50.63 101.56 24.65 75.99 34.00 66.02 72.37 76.02 12.50 61.58 September.... 4.7675 97.97 17.13 88.76 15.56 80.62 50.63 101.56 24.29 74.88 33.75 65.53 70.94 74..52 12.15 59.85 October 4.7569 97.75 17.13 88.76 15.47 80.16 51.00 102.31 24.10 74.29 31.75 61.65 70.56 74.12 12.00 59.11 November 4.7175 96.94 17.12 88.70 15.04 77.93 51.00 102.31 23.96 73.86 30.75 59.71 70.19 73.73 11.88 58.52 December 4-7569 97.75 17.14 88.81 15,02 77.82 50.88 102.07 23.63 72.84 30.75 55.71 75.25 79.04 13.40 66.01 1917. January 4.7585 97.78 17.12 88.70 14.52 75.23 50.88 102.07 23.57 72.66 29.90 58.06 71.44 75.04 11.79 58.08 February 4.7580 97.77 17.11 88.65 14.12 73.16 51.00 102.31 23.46 72.32 29.10 56.50 70.87 74.44 11.10 54.68 March 4.7555 97.72 17.12 88.70 13.11 67.93 51.00 102.31 23.18 71.45 28.60 55.53 71.50 75.11 11.50 56.65 April 4.7585 97.78 17.61 91.24 14.51 75.18 51.13 102.58 24.35 75.05 28.85 56.06 May 4.7556 97.72 17.52 90.78 14.28 73.99 51.13 102.58 26.75 82.45 28.10 54.60 June 4.7555 97.72 17.47 90.52 14.21 73.63 51.25 102.81 26.90 82.91 26.10 50.72 July 4.7565 97.74 17.45 90.41 13.93 72.18 51.25 102.81 26.82 82.67 23.90 46.44 August 4.7555 97.72 17.35 89.90 13.82 71.61 51.00 102.31 25.64 79.03 21.65 42.07 | September 4.7555 97.72 17.33 89.79 13.29 68.86 51.38 103.06 25.22 77.73 18.00 34.98 October 4.7530 97.67 17.51 90.73 12.95 67.10 52.00 104.31 25.64 79.03 15.75 30.61 November 4.7520 97.65 17.44 90.36 12.59 65.23 52.13 104.57 26.25 80.91 13.50 26.23 December 4.7525 97.66 17.45 90.41 12.52 64.87 51.80 103.91 26.90 82.91 13.50 26.23 1918. January 4.7535 97.68 17.53 90.83 12.03 62.33 51.88 103.91 27.14 83.65 13.13 25.51 February 4.7535 97.68 17.51 90.73 11.76 60.93 51.65 103.61 26.67 82.20 13.75 26.72 March 4.7535 97.68 17.47 90.52 11.98 62.07 51.75 103.81 26.42 81.43 13.50 26.23 April 4.7550 97.71 17.49 90.62 11.38 58.96 51.90 104.11 25.84 79.64 14.50 28.18 May 4.7550 97.71 17.53 90.83 11.15 57.77 52.75 105.82 25.64 79.03 U5.25 29.63 June 4.7550 97.71 17.50 90.67 11.29 58.50 52.90 106.12 25.64 79.03 115.25 29.63 July 4.7535 97.68 17.50 90.67 12.48 64.66 53.75 107.82 24.94 76.87 115.00 29.15 i Cable rates. Movement of exchange rates (sight drafts) in Switzerland on Berlin and Vienna during period from June, 1914 to June, 1918. } [At Basle, average of offer and demand rates at close of month.] Berlin Vienna Berlin Vienna (123.457=100). (105.01=100). (123.457=100). (105.01=100). 1914. Per cent. Per cent 1917. Per cent. Per cent. June $122.87 99.52 $104 28 99.30 January $84.60 68.53 $54.40 51.80 July 122 67 99 36 103 92 98 96 February 82.25 66.62 51.25 48.80 Ausfust 121 00 98 01 92 00 87 61 March... 79.25 64.19 50.10 47,71 September 116 00 93 96 91 00 86 66 April. 79 25 64 19 49 60 47 23 October 115 12 93 25 92 50 88.09 May 75.10 60.83 48.40 46.09 November 111 25 90 11 89 00 84 75 June. 68.50 55.48 43.50 41.42 December 114.50 92.74 91.00 86.66 July 63.50 51.43 40.75 38.81 August 63.75 51.64 40.80 38.85 1915. September 64.80 52,49 41.50 39.52 January 115.22 93 33 90 00 85.71 October 63.00 51.03 39.75 37.85 February.. 111.62 90.41 84.00 79.99 November 65.00 52.65 40.25 38.33 March.. 110.22 89.28 82.00 78.09 December 85.75 69.46 52.50 50.00 April 108.80 88.13 81.50 77.61 May .. 108.25 87.68 80.25 76.42 1918. June 109 40 88 61 81.00 77.14 January 82.75 67.03 52.50 50.00 July .. . 109.00 88.29 80.50 76.66 February !' 86.75 70.27 57.50 54.76 August 108 75 88 09 80 35 76 52 March 85 10 68.93 55 25 52 61 September 109.55 88.74 78.75 74.99 April 82.10 66.50 52.60 50.09 October 109 00 88 29 77 40 73.71 Mav .. 79.10 64.07 48.75 46.42 November 105 85 85.74 74.37 70.82 June 69.00 55.89 40.00 38.09 December. 98.75 79.99 67.00 63.80 1916. 95.37 77.25 63.85 60.80 February 94.65 76.67 65.00 61.90 March.. 92.80 75.17 64.10 61.04 April 95.95 77.72 66.35 63.18 Mav .. 97.00 78.57 67.60 64.37 June. 95.65 77.48 66.50 63.33 July 94.57 76.60 65.65 62.52 August.. 92.50 74.92 63.75 60.71 September 92.40 74.84 62.90 59.90 October 90.90 73.63 59.35 56.52 November... 84.60 68.53 52.75 50.23 December 84.62 68.54 53.37 50.82 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
SEPTEMBER 1,1918. FEDERAL RESERVE BULLETIN. 839 Movement of exchange rates (highest rates for sight drafts during month) in New York on principal financial centers during period from June, 1914, to July, 1918. 2. RATES ON MARKETS IN NEUTRAL COUNTRIES. ! Amsterdam Copenhagen Stockholm Zurich Madrid Buenos Aires Valparaiso (40.2=100). (26.8=100). (26.8=100). (19.3=100). (19.3=100). (42.45=100). (18.80=100). 1914. Per ct. Per ct. Per ct. Per ct. I Per ct. Per ct. Per ct. June §40.31 100.27 $26.90 100.37 S19.42 100.62 819.19 102.07 July 41 25 102 61 27 50 102 61 21.51 111.45 19.12 101.70 August 42.00 104.48 27.50 102.61 16.67 88.67 September 41.75 103.86 "20*66" iO3."63" 15.20 ! 80.85 October 42 50 105 72 19.88 103.01 14.71 1 78.24 November ... 40.87 101 67 25.87 96.53 19.42 100.62 1 14.27 75.90 December 10.62 101.04 25.25 94.22 19 29 99.95 13.87 73.78 1915. " ! 40.50 100 75 25 00 93.28 $25.15 93.84 19.14 99.17 $19.24 99.69 14.27 75.90 February 40.31 100.27 24.81 92.57 24.95 93.10 18.89 97.88 19.49 100.98 14.71 78.24 March 40 00 99 50 25 50 95 15 25 65 95.71 18 69 96 84 19.78 102.49 15.20 80.85 April 39 50 98 26 25 75 96.08 25.80 96.27 18 79 97.36 20.05 103.89 16.67 88.67 May- 39 56 98 41 25 95 96 83 26 00 97 01 18 89 97 88 19 80 102.59 15.63 83.14 June 39 94 99 35 26 42 98 58 26 47 98 77 19 01 98.50 19.08 98.86 15.65 83.24 July- 40 06 99 65 26 35 98 32 26.40 98.51 18.69 96.84 19.23 99.64 15.58 82.87 40 31 100 27 25 90 96 64 25 95 98 63 18 83 97.56 19.36 100.31 15.87 84.41 September 40.37 100.42 25.95 96.83 26.00 97.01 19.05 98.70 19.00 98.45 S41.55 97.88 17.64 93.83 October 41 50 103 23 26 ?0 97.76 26.25 97.95 19.01 98.50 19.05 98.70 42.00 98.94 18.80 100.00 November 42.00 104 48 28.05 104.66 28.10 104.85 18.83 97.56 19.03 98.60 41.75 98.35 17.54 93.30 December 43.50 108.21 28.00 104.48 28.05 104.66 19.08 98.86 18.90 97.93 42.00 98.94 17.57 93.46 1916. January .... 45 87 114 10 27 90 101.10 28.13 104.96 19.49 100.98 19.12 99.07 42.12 99.22 16.84 89.57 February 42.62 106 02 28.25 105.41 28.75 107.28 19.31 100.05 19.25 99.74 44.45 104.71 16.84 89.57 March 42.75 106.34 29.00 108.21 29.00 108.21 19.19 99.43 19.37 100.36 42.62 100.40 16.31 86.76 April 43 25 107 59 30.20 112.69 30.50 113.81 19.34 100.21 19.65 101.81 42.62 100.40 17.06 90.74 May 41.87 104 15 30.80 114.93 31.25 116.60 19.31 100.05 19.95 103.37 42.32 99.69 17.06 90.74 41.75 103.86 30.10 112.31 30.40 113.43 19.12 99.07 20.70 107.25 42.25 99.53 17.83 94.84 July 41.44 103.08 29.10 108.58 29.15 108.77 18.94 98.13 20.30 105.18 42.25 99.53 18.45 98.14 41.44 103.08 28.70 107.09 28.80 107.46 18.89 97.88 20.20 104.66 41.69 98.21 18.45 98.14 September 41 12 102 29 27 75 103 54 28.70 107.09 18.89 97.88 20.16 104.46 42.39 99.86 20.79 110.59 October 41.19 102.46 27.40 102.24 28.50 106.34 19.04 98.65 20.30 105.18 43.15 101.65 20.79 110.59 November 41.00 101.99 27.15 101.31 28.45 106.16 19.34 100.21 20.55 106.48 43.40 102.24 21.65 115.16 December 40.87 101.67 27.80 103.73 29.45 109.89 20.28 105.08 21.25 110.10 44.89 105.75 22.78 121.17 1917. January ... . ... 40.81 101.52 27.70 103.36 29.65 110.63 20.00 103.63 21.25 110.10 44.34 104.45 22.68 120.64 40.75 101.37 27.55 102.80 29.60 110.45 20.00 103.63 21.35 110.62 44.46 104.73 21.60 114.89 March 40.50 100.75 29.60 110.45 30.00 111.94 19.94 103.32 21.75 112.69 44.03 103.72 20.85 110.90 April 41.75 103.86 28.90 107.84 30.30 113.06 19.84 102.80 21.90 113.47 42.89 101.04 21.45 114.10 May 41.25 102.61 28.70 107.09 30.00 111.94 19.82 102.69 22.75 117.88 44.26 104.26 23.17 123.24 June .. . 41 19 102.46 29.25 109.14 30.30 113.06 20.70 107.25 23.65 122.54 44.26 104.26 23.85 126.86 July 41.47 103.16 29.50 110.07 33.10 123.51 22.12 114.61 23.30 120.73 43.97 103.58 24.69 131.33 42.38 105.42 30.40 113.43 33.85 126.31 22.83 116.29 22.85 118.39 43.25 101.88 25.66 136.49 42.13 104.80 31.15 116.23 34.40 128.36 22.22 115.13 24.10 124.87 43.23 101.84 28.75 152.93 October 45.75 113.80 35.75 133.40 42.00 156.72 22.73 117.77 23.65 122.54 44.21 104.15 28.12 149.57 November . .. 45.25 112 56 38.75 144.59 45.50 169.78 23.04 119.38 23.70 122.80 47.01 110.74 27.99 148.88 December 44.50 110.70 33.75 125.93 37.25 138.99 23.42 121.35 24.40 126.42 47.65 112.25 28.23 150.16 1918. January 44 25 110.07 31.75 118 47 34.25 127.80 22.99 119.12 24.40 126.42 45.98 108.32 25.95 138.03 45.50 113.43 31.00 115.67 33.50 125.00 22.42 116.17 25.25 130.83 44.04 103.75 26.95 143.35 March 46.75 116.29 31.75 118.47 34.00 126.87 23.17 120.05 25.63 132.80 44.44 104.69 29.35 156.12 April 48.25 120.02 31.75 118.47 34.50 128.73 23.53 121.92 29.75 154.15 43.85 103.30 30.68 163.19 May 50.50 125.62 31.50 117.54 34.75 129.66 26.11 135.28 28.40 147.15 43.91 103.44 32.69 173.88 51.00 126.87 31.25 116.60 35.60 132.84 25.38 131.50 28.55 147.93 43.38 102.19 33.51 178.24 July 52.00 129.35 31.30 116.79 35.80 133.58 25.38 131.50 27.55 142.75 44.83 105.61 32.99 175.48 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
840 FEDERAL BESEKVE BULLETIN. SEPTEMBER 1,1918. Movement of exchange rates (highest rates for sight drafts during month) in New Yorlz on principal financial centers during period from June, 1914, to July, 1918—Continued. 3. HATES ON MARKETS IN SILVER COUNTRIES. Average Average London price for Bombay Hongkong Shanghai price of 1913— (32.44-100). (47.16=100). (65.49=100). silver. .60458 (£= cent=» 4.8665). 100. 1914. Per cent. Per cent. Per cent. Per cent. June 5533.00 101.73 $46.90 99.45 $61.00 97.72 $0.56879 94.08 July 33.00 101.73 46.45 98.49 64.00 97.72 .55201 91.30 August 47.85 101.46 64.75 98.87 September- .53159 87.93 October .50555 83.62 November.. .49630 82.09 December.. .50145 82.94 1915. January •I- .49678 82.17 February... .50007 82.71 March .51822 85.72 April 33.50 103.27 44.70 94.78 57.00 87.04 .51925 85.89 May 33.50 103.27 44.60 94.57 57.00 87.04 .51706 85.52 June 33.50 103.27 44.30 93.94 56.50 86.27 .50135 84.41 July 33.00 101.73 43.00 91.18 56.00 85.51 .49556 81.97 August 33.00 101.73 42.70 90.54 56.00 85.51 .49973 82.66 September.. 33.00 101.73 43.75 92.77 56.00 85.51 .51761 85.61 October 33.00 101.73 43.75 92.77 55.75 85.13 .52441 86.74 November.. 33.00 101.73 48.25 102.31 63.00 98.20 .54986 90.95 December.. 33.00 101.73 47.35 100.40 63.00 96.20 .57812 95.62 1916. January 33.00 101.73 47.60 100.93 63.87 97.53 .59099 97.75 February... 33.00 101.73 46.80 99.24 63.75 97.34 .59133 97.81 March 33.00 101.73 49.50 104.96 67.50 103.07 .60496 100.06 April 33.00 101.73 56.50 119.80 76.00 116.05 .67215 111.18 May 33.00 101.73 56.25 119.27 80.12 122.34 129.00 June 33.00 101.73 51.00 108.14 72.00 109.94 112.62 July 33.00 101.73 50.00 106.02 72.12 110.12 .65632 108.56 August 33.00 101.73 51.75 109.73 73.50 112.23 .69040 114.19 September.. 32.63 100.59 52.75 111.85 75.50 115.28 .71469 118.21 October 32.75 100.96 53.45 113.34 76.50 116.81 . 70942 117.34 November.. 32.38 99.82 56.00 118.74 87.50 133.61 .74852 123.81 December.. 32.50 100.18 58.00 122.99 89.00 135.90 .79815 132.02 1917. January 34.00 104.81 58.00 122.99 89.00 135.90 .80412 133.00 February... 32.50 100.18 58.00 122.99 89.50 136.66 .82721 136.82 March 32.50 100.18 56.50 119.80 86.50 132.08 .79844 132.07 April 32.50 100.18 57.60 122.14 86.50 132.08 . S1102 134.15 May 32.50 100.18 58.00 122.99 86.50 132.08 .83163 137.56 June 32.50 100.18 60.50 128.29 92.38 141.06 .85712 141.77 July 32.50 100.18 64.75 i 137.30 95.88 146.40 .87913 145.41 August 33.75 104.04 76.25 161.68 117.00 178.65 .94409 156.16 September.. 40.00 ! 123.30 82.00 I 173.88 120.00 183.23 1.11965 185.19 October 40.00 123.30 80.00 169.64 106.00 161.86 .97170 160.72 November.. 35.00 I 107.89 80.00 169.64 105.00 160.33 .95557 158.06 December.. 35.00 107.89 74.50 157.97 110.00 167.96 .94329 156.02 1918. January... 35.00 107.89 75.00 159.03 114.00 174.07 .97222 160.81 February.. 35.75 110.20 73.00 154.79 108.00 164.91 .93825 155.19 March 36.00 110.97 77.00 163.27 111.00 169.49 .95795 158.45 April 137.25 114.83 77.00 163.27 109.00 166.44 1.03501 171.19 May 39.50 121.76 76.50 162.21 109.50 167.20 1.07403 177.65 June 38.50 118.68 79.00 167.51 113.50 173.31 1.07140 177.21 July 2 35.73 110.14 80.50 170.70 116.50 177.89 1.07003 176.99 1 Minimum rate for telegraphic transfers fixed Apr. 11 at 35.75; previously 33.5. 2 Rate for telegraphic transfers fixed June 18 at 35.73. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
EXCHANGE RATES IN NEW YORK ON BELLIGERENT COUNTRIES. H6 \ W 1 no m AM 112 'YOKO 108 / 10S i-X— 1m H (04 H H \ 100_j \E3N ^^ H too > 3$ s w s, s 96 s >•» $2 s 32 PARIS uM / €8 s _. Is; 88 #4 84 RfODE ea t \ ^\ r l«. 1 X/ Mps ,.••< •9 to j j ^~ / —<\ 80 JANElPiO 76 si I 4-/ is rf \ I \ F6 y \ \ s ??* h k, / / ft K ?2 6e L i \ / ••^ 6S \ f • • i 64 s. I j 64 L • \ ' >\! \ \ / \ in. •• 60 \ ) r s / \ • 6O 1 S6 56 \/ sz 52 V 48 \ 44 \ 44 40 4O' PEDRO- \ 6RAD 36 \ 3? v 32 - 28.[ • 24 •i ^ii s s w ^ t i i ii ^.i ^ii s ? 11 s^i iy ^ 00 l&Mf- 1 J91S \ 1916 j 1B17 \ IB16 ..( Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
EXCHANGE RATES IN SWITZERLAND ON BERLIN AND VIENNA 00 Mffi to 116 m 108 m m — — 100 K \36 \ —- es 1 \ - \ -4 st \ 88 \ is • J > \ — 88 — \ \ S4 go \ V \ - BO' „..«• j sJ 75' s V - \ J 68 » \ / 68 \ k\/ X \ — V 60 — — - - — — — 1 V X ,. i i "1 V 1 —\ \ 60 /• \ ma -- "i \ i SB •. \ - S; V SB \ \ — i \ — SZ % \ - 48 48 — — \ i 44 —-- — — 44 ..... \ --lf- - -§-• 40 1 J ._ -1 40 r 36 36 — - 32 32' I £8 23 1- j - - _ 1 i i T i -- - ?4 ' S1 y § ^ ^ ^ 5 ^ S i ^ ^ S y i ^ ^ ^ 8 ^ ? ^ ^ 4 1 fe* S S ^ t ^ fi ^" S1 .^_1 S § S 1 M 1 ^ ^ 8 ^ i i 1 II ISIS j 1316 \ 1917 | IBIS Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
^CfMM6E KATES IN NEl¥ YORK OPl NEUTRAL C&mTmS,A/J&Cffl£g1MmTES0fm i -4 184 1- '"••| 180 I 176 •JL 1F2 r- . i 168 / f i ! r / • j (80 / / MADRID • 156 t 1S2 &? IN •I 148 1' f t\1M K srocmom I (44 ... / \ ,W /i '1 \ / \ MO J / i / / / / /^7 136 • ik f 136 \ V iL < £2 /I \ V ?\ 132 12B / _jj 4tA-A 128 *• J 124 s\ i / 124 i \ 1 t —[ L N 1 {7 120 i s / • — Jf / &)• 116 - V /i f k j \ 116 1/2 I t / J T t i +A • 1 i 112 108 i \ 1 \ *J?—,s, A T s /• r \ •f 7 ^. f \ - 108 104 A d q i < 104 100 C1—••£ \ / 100 . 1 r£2 36 \ Ml r • **" 06 \ ,. 32 \ Y $2 88 X \ / 88 84 ± — — : \ I i\ \ ittfti - — — __ \f — —— 84 8O — f — — - 80 76 \ — 76 1 72 72 •••• oo 1914 I 191S 1 . 1916 1 JB1P \ 1918 1 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
miiwsc/ims Ai^oLomoii PRICE OFSiu/m. 00 196 136 taz 132 m m \ A 184 184 /H 180 in 180 / 1F6 1 If* ; / SHANGHAI / 168 i 1 ~A'J / «o—-o»">-o» 'IfV L\ i -\ 164 v i 1/ 164 H A 160 f fl/ (60 , \ 1S6 «'( 1S6 r" 1S2 .. 152; it 148 ... — .... Jh — 144 ! 140 -- ... — V 140 H0N6K0N6 136 V 1 •— 136 / 1 T 1 j— 132' 1 1 2 2 8 4 A / / 1/ / —i — - i ( 1 2 2 8 4- 120 1 rh" —- f - r — (20 ..... ; 116 ... — » • tie ///Si — / \ 112 • / /_ —... - i 4 _ - \ r""' \ —(12 108 108 104 ••> A • .... (04 100 -I d (00 96 .. • fi ;, —— 36 BOMBAY sa t 92 .- i •«sJ r 1/ - ... / 88 I \ mtii I 84 — EjE - - — 84 ( 80 1 ... /•• { ? •] • - •• _— -1 • —80 . 1 ,_ :. 76 1 ".t 1 \ \ \ 1914- . i IBIS 1 • •- JBIG. 1 IS!? I 1318 I Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
SEPTEMBER 1,1918. FEDERAL RESERVE BULLETIN. 845 Holdings by the Banks of Treasury Certificates.1 31, 1917, and Mar. 4, 1918) not complicated in this manner, and assuming that the amount The twenty-three issues of Treasury cerof ante-bellum bonds held by the national tificates of indebtedness, emitted in anticipabanks has not changed since March 5, 1917— on of the proceeds of Liberty loans and in- $714, 523,000—the certificates held by the come and excess taxes, from March 31,1917, to national banks at the several dates, and the May 15, 1918, have been taken and held in the main b\T the financial institutions of the ratios of such holdings to the total nominal volume of certificates then outstanding would country—national banks, State banks, and be approximately, as follows: trust companies. The Federal Reserve Banks, with "whom was placed the entire ante-bellum issue of March 31, 1917, subsequently with- Certificates Nominal held by amount of drew from the role of direct investors and con- Call oi— national certificates Per cent. banks. outstanding. fined themselves to the functions of distribution and remittance, with only such temporary Sept. 11,1917. §226,559,000 3550,000.000 41.2 investment service as was made necessary by M De a c r . . 3 4 1 ,1 ,1 9 9 1 1 8 7 . . . 3 9 0 3 0 0 ; ,5 3 9 8 5 0 , , 0 0 0 0 0 0 2,6 6 5 9 7 1, , 8 7 7 9 2 2 ^ ,0 0 0 0 0 0 4 3 3 5 .4 administrative convenience, by the insufficiency of the banks' subscriptions, and by the (2) As to the certificates held by banks other desirability of aiding wider distribution of than national banks: certificates among the banks. On June 20, 1917 the total resources of Of the certificates acquired by the banks, 17,576 "reporting" 2 State banks, loan and much the largest quota has been for their own trust companies were $14,699,487,556. It such account, only a minor part being apparently resources increased from June 20 to December taken in behalf of customers. This applies to 31, 1917, in the same proportion as did the total the loan anticipation certificates; with respect resources ot the national banks (from $16,151to the tax anticipation issues the conditions 040,000 to $18,073,308,000, or 11.9 per cent), have probably been somewhat different. No the total resources of the reporting State banks precise tabulations are available as to the sev- etc., on December 31, 1917, would have been eral amounts of the certificates taken and held $16,448,726,575. by the banks as compared with those taken The total resources of the 250 Federal Reand held by investors. It is possible, however, serve member State banks and trust companies to form some opinion as to this from the condion December 31, 1917, were $5,013,885,000. tion of the national banks on the several "call" The total resources of the 17,326 nonmember dates; from the condition of "member banks State banks, etc., would therefore be $11,434,in leading cities" reported weekly after De- 641,575, or 228 per cent of the total resources cember 7, 1917, to the Federal Reserve Board; of the member State banks, etc. and from the condition of member banks other On December 31, 1917, the 250 member than national banks on December 31, 1917, State banks, etc., owned $234,592,000 United reported to the Federal Reserve Board. States securities. Assuming, somewiiat peril- I. (1) As to the certificates held by the ously, that the nonmember State banks, etc., national banks: held United States securities as compared with The computation is' affected not only by the holdings of member State banks, etc., in infrequency of available data, but by the fact the ratio which the "total resources" of the that three (June 20, 1917, Nov. 20, 1917, and two groups bear to one another, viz, 228 per May 10, 1918) of the "call" dates fall in the cent, we should expect nonmember State midst of Liberty loan flotations. Taking the remaining three "calls" (Sept. 11, 1917, Dec. 2 It is probable that there are included in the comptroller's reporting State banks, trust and loan companies certain financial institutions i Contributed by Prof. Jacob H. Hollander, of the Johns Hopkins not of a kind likely to purchase certificates. As against this, there are University, Baltimore, Md. certainly nonreporting banks that purchase certificates. 7865a—18—7 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
846 FEDERAL RESERVE BULLETIN. SEPTEMBER 1,1918. banks, etc., to hold $534,869,760 United II. (1) Available data, after December 7, States securities. Accordingly, both member 1917, as to "member banks in. selected cities/' and nonmember State banks, etc., would hold afford an alternate and less satisfactory mode $769,461,760. of computing the banks' holdings of certifi- This $769,461,760 would be composed of: cates at a typical later date when large (a) Ante bellum United States bonds; (h) amounts of tax anticipation certificates had Liberty bonds and paid subscriptions thereto; been sold "over the counter" and when prog- (c) certificates of indebtedness. ress had been made in securing a wider dis- As to (a), on June 20, 1917, 20,319 reporting tribution and absorption of the loan anticipabanks, other than national, held $77,161,898 tion issues. United States securities. Assuming, arbitra- On April 18, 1918, there were outstanding, in rily, that one-half of this amount consisted of nominal amounts— ante bellum issues held by reporting State Tax anticipation certificates $1,440, 636, 500 banks, loan and trust companies, and that Loan anticipation certificates 2,494,259,000 such holdings did not thereafter increase, there Total 3,934,895,500 would remain $730,880,811 of (6) Liberty On the same date the "selected" member bonds and (c) certificates of indebtedness held banks held $1,497,677,000 certificates, or 38 by reporting State banks, etc. per cent of the nominal amount outstanding. Assuming that the Liberty bonds and cer- To this must be added the holdings of (a) tificates of indebtedness held by the State member banks, other than "selected;" (6) banks, etc., were distributed in the same prononmember banks; (c) Federal Reserve Banks. portions as were the corresponding holdings of As to (a), there were 630 "selected" banks the national banks on the same date (Dec. 31, on December 28, 1917, and 685 on April 19, 1917) we have the following: 1918. Assuming "time deposits" to be constant and comparing such deposits of the 630 National. State, etc. banks ($1,321,944,000) with the 685 banks ($1,397,596,000), the diiference $75,652,000, Liberty bonds $609,626,000 5489,690,143 Certificates of indebtedness 300,380,000 241,190,668 or 5.7 per cent, would represent the relative Total . . 910,006,000 730,880,811 banking strength of the 55 additional banks. The "selected" banks held $591,578,000 The total (nominal) amount of certificates Government deposits on December 28, 1917, outstanding on December 31, 1917, was $691,and $550,439,000 on January 4, 1918, of 872,000. Of this the holdings of the State which the mean $571,008,500 might be taken banks, etc. ($248,939,000 as above), formed for December 31, 1917. Augmenting this by thus 34.9 per cent. 5.7 per cent, the Government deposits of the Finally the Federal Reserve Banks held on 685 banks on December 31, 1917, would have December 28, 1917, $58,883,000 United States been $603,555,000. Government short-term securities, which we may assume to have been entirely certificates The Government deposits in all member of indebetdness. banks on December 31,1917, were $649,413,000, indicating $45,858,000, or 7 per cent, as the Summary. banking strength of the "nonselected" member banks. Amount. Per cent. Correcting $1,497,677,000 and 38 per cent, by Certificates outstanding Dec. 31,1917 $691,872,000 100 7 per cent, to allow for "nonselected" member H H e e l l d d b b y y n S a ta ti t o e n b a a l n b k a s n , k e s tc 3 2 0 4 0 8 , , 3 9 8 3 0 9 , , 0 0 0 0 0 0 3 4 4 3. . 4 9 banks, we have: Held by Federal Reserve Banks 58,883,000 8.5 Certificates held by all member banks $1,602,514,390 Held by all banks 608,202,000 86.8 Per cent of outstanding certificates ... 40.6 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
SEPTEMBER 1,1918. FEDERAL RESERVE BULLETIN. 847 (2) As to certificates held by nonmember briefly, to summarize the position of the Treasury Department toward revenue legislation this year. banks: In May I called the attention of the President and Con- On December 31, 1917, the total resources gressional leaders to the urgent need of additional taxes of all member banks were $23,078,045,000. and prompt action to impose them and indicated the But the total resources of all national banks sources from which these taxes should, I thought, be raised. ($18,073,308,000) and of all reporting State The President addressed the Congress on the 27th day of May and asked the Congress to remain in session for this banks, loan and trust companies reporting purpose and indicated his expectation that the Congress ($16,448,726,575, being 11.9 per cent increase would turn to war profits and incomes and luxuries for the over the June 20, 1917, figures) aggregated additional taxes. $34,522,034,575. The total resources of non- When I was obliged to leave Washington, early in June, member banks was therefore $11,443,989,575, I wrote your chairman a letter, dated June 5, which I or 49.6 per cent of that of the member banks. believe you have printed before you, in which I outlined in some detail the urgency for immediate tax legislation Assuming that nonmember banks took cerand the character of the legislation which the Treasury tificates in the same ratio to total resources would suggest. as did member banks, we should conclude that I then estimated on the basis rather of the growth of the nonmember banks held $794,847,137 certifi- expenditures in the past than on the basis of the appropricates, or 20.2 per cent of the nominal amount ations and indicated appropriation, that the expenditures outstanding. for the fiscal year ending June 30, 1919, would amount in the aggregate to $24,000,000,000. I anticipated that there Finally, on April 19, 1918, the Federal having been a very large increase in expenditures for the Reserve Banks held $46,295,000 United States month of May, expenditures for the month of June would Government short-term securities. be about the same, and that if the expenditures should continue to mount at the rate of $100,000,000 per month Summary. for the next six months, or until December, 1918, and thereafter remain stationary, this total would be reached. Amount. Per cent. Or, putting it another way, if the average monthly expenditure should exceed that for the month of May, 1918, Certificates outstanding Apr. 19,1918. $3,934,895,500 100.00 by 33J per cent we should spend a total of $24,000,000,000 Held by member banks 1,602,514,380 40.6 for the fiscal year 1919. Held by nonmember banks 794,847,137 20.2 Hold by Federal Reserve Banks 40,295,000 1.2 Following the same method of calculation, from the state- Held by all banks 2,443,056,527 02.0 ment for the last day in the month we find that my expectation has been realized during the past two months, the expenditures for the month of June being $1,512,573,702.42, TENTATIVE CONCLUSIONS. and for the month of July $1,608,282,654.44. Itthusappears The highly tentative conclusions which that in the month of July our expenditures reached a sum might be drawn from the foregoing are that which, if there should be no further increase in the monthly of the certificate issues prior to January 1, 1918, expenditures, would make the total expenditures for the fiscal year 1919 approximate $20,000,000,000. the banks took for their own account slightly Since I wrote to Mr. Kitchin on June 5, Mr. Sherley, less than seven-eighths, and that of the issues chairman of the Committee on Appropriations, has subsince emitted the banks have taken something mitted a statement to the House, reported in the Congresmore than three-fifths. sional Becord of July 22, page 9973, showing appropriations and authorizations for expenditures in the sum of $29,- 791,241,773.67. Mr. Sherley, however, in his remarks War Revenue Legislation. says that the probability is that the expenditures for 1919 will be at least five or six billions of dollars less than that The following statement made by the Secreamount, from which it appears that his estimate is about tary of the Treasury before the Ways and the same as mine—$24,000,000,000. I am apprehensive, Means Committee, on August 14, presents the not that I have overestimated the expenditures for the current fiscal year, but, on the contrary, that I have underviews of the Department relative to warestimated them in assuming that the progressive average revenue taxation: monthly increase of $100,000,000, which has continued At the risk of wearying you by a repetition of matters since we entered the war, will cease as soon as January, which may already be fresh in your recollection, I want, 1919. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
848 FEDERAL RESERVE BULLETIN. SEPTEMBER 1,1918. I shall not trouble you to review the reasons which led patriotic men, of whatever economic or political school, me to urge the enactment of a revenue measure which that no one should profit largely by the war. The excesswould produce not less than one-third of these estimated profits tax must rest upon the wholly indefensible notion expenditures, or $8,000,000,000, because I understand that it is a function of taxation to bring all profits down that view has met with acceptance by your committee. to one level with relation to the amount of capital invested, It is sufficient for me to say that in the light of such in- and to deprive industry, foresight, and sagacity of their formation as I have obtained in the interval, $8,000,000,- fruits. The excess-profits tax exempts capital and burdens 000, seems to me to be a minimum amount. brains, ability, and energy. The excess-profits tax falls Turning now to the consideration of the general recom- less heavily on big business than on small business, mendations as to the character of the revenue act, the because big business is generally overcapitalized and small most important, and I am sorry to say the most contro- businesses are often undercapitalized. versial, is that in relation to the war profits tax and excess The war-profits tax would tax all war profits at one high profits tax. rate; the excess-profits tax does, and for safety must, tax In my letter of June 5 I said: all excess profits at lower and graduated rates. Any "The existing excess profits tax does not always reach graduated tax upon corporations is indefensible in theory, war profits. The rates of excess profits taxation are grad- for corporations are only aggregations of individuals, uated and the maximum is 60 per cent. In Great Britain and by such a tax the numerous small stockholders of a there is a fiat rate of 80 per cent on all war profits. The great corporation may be taxed at a higher rate than the Government Departments, under great pressure as they are to get necessary war materials and supplies with the very wealthy large stockholders of a relatively smaller utmost expedition, cannot in the nature of tilings fix their corporation. The object of a graduated tax should be to prices nor guard their contracts in such a way as to avoid make taxes fall upon the rich, who are best able to pay the possibility of profiteering. The one sure way is to tax them. The graduated excess-profits tax disregards this, away the excessive profits when they have been realized. I do not say this in a spirit of criticism of the corporations and often produces the reverse result. or business men of the country who have for the most part But, though these great defects in the excess-profits tax loyally supported the Government. In entering into war lead me very strongly to recommend that you should contracts they take grave risks. They are called upon to make vast expenditures of capital for purposes which may seek additional sources of taxation in the war-profits tax prove unproductive after the war. They are not to be and not in an increase of the excess-profits tax, I have blamed in these circumstances for asking for prices and from the beginning favored the continuance of the existing terms which cover those risks. On the other hand, when excess-profits tax with the inequalities and injustices the risk has been liquidated by proper allowances, and the remedied, because this is not a time when the Treasury contract has proved profitable, the Government should take back in taxes all profits above a reasonable reward. can afford to dispense with any existing source of revenue. Under existing law, that does not happen because the tax Rather, it is my duty to point out to you additional sources rates are not high enough and can not safely be made high of taxation. enough, since the test now is not how much of the profits are due to the war, but what relation the profits bear to the As I have already indicated, I am opposed to increasing capital invested. A company with a swollen capital and the excess-profits tax. This does not mean that I think huge war profits escapes." the existing excess-profits tax can not be improved. On and again: the contrary, I have indicated from the beginning, and repeatedly, that I think it can and should be improved. " (2) That a real war-profits tax at a high rate be levied If, as I now understand, you contemplate an increase upon all war profits. This tax should be superimposed upon the existing excess-profits tax in such a in the exemption, then there must also be an increase in way that the taxpayer should be required to pay which- some of the excess-profits tax rates to make the tax produce ever tax is the greater. The existing excess-profits tax an equal amount of revenue. Similarly, if, as seems should be amended in certain important particulars so as to probable, additions to invested capital made during remove inequalities." the past year will result in a reduction of the revenue pro- This I supplemented with my telegram of August 4 duced by the excess-profits tax under the existing rates, to your chairman, urging the war-profits tax and that the modifications must be made on that account. rate should be a flat rate of 80 per cent, and the con- My thought has been not that the existing rates or law tinuance of the existing excess-profits tax modified so as should be regarded as sacrosanct, but that the existing law to remove any inequalities. should receive modification, not from the point of view of The distinction between a war-profits tax and the excessproducing additional revenue from the excess profits tax, profits tax is not a matter of form, but of substance. By but from the point of view of producing the same revenue a war-profits tax we mean a tax upon profits in excess of and with a reduced and not increased injustice and inthose realized before the war. By an excess-profits tax equality. we mean a tax upon profits in excess of a given return upon I have read in the newspapers, with a good deal of surcapital. The theory of a war-profits tax is to tax profits prise, the intimation that the plan of the Treasury Departdue to the war. The theory of an excess-profits tax is to ment was calculated to produce less rather than more tax profits over and above a given return on capital. A revenue, and to relieve certain large corporations from war-profits tax find? its sanction in the conviction of allt axat ion. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
SEPTEMBER 1,1918. FEDERAL RESERVE BULLETIN. 849 I should like to make a part of the record, a memorandum ones which our researches indicate as benefiting by the which Dr. Adams of the Treasury Department has prepared omission to increase the excess profits tax. for me, showing a comparison of the war profits and excess The S Company under the existing law would pay about profits taxes as applied to twenty-two selected corporations $3,452,000 and under the increased rates proposed by the including the corporations which have been named in the committee, would have to pay $4,369,000, an increase of newspapers as most likely to benefit by the omission to about $900,000. increase the excess profits tax. The T Company under the existing law would have to I shall state now only his general conclusions: pay $1,852,000 and under the increased excess profits tax "1. Twenty-two horrible examples, selected deliber- would have to pay $2,296,000, an increase of about $400,000. ately to ascertain the worst the war profits tax and the best The following statement shows what would happen if the the excess profits tax can do, yield just four cases in which 80 per cent war profits tax, and the various excess profits the excess profits tax would be as productive as the war taxes, were levied upon a composite group composed of R profits tax. "2. Eleven corporations, including A Company and companies. some of the worst of the other horrible examples, got no benefit from the war profits deduction, while they would A COMPOSITE (it) GROUP. pay the 80 per cent rate which is an integral part oi: the war pro (its tax. Invested capital for taxable year $623,705,538 ;t3. Contrasting the 60 per cent with the 80 per cent Invested capital for prewar period 362,713,982 bracket in the two proposed new excess profits taxes, it Net income for taxable year 204,755,823 appears that in only one case * * * would the change from the 80 per cent to the 60 per cent bracket affect the War profits deduction: tax. Of course the totals show a higher amount for the Specific $3,000 excess profits tax with an extreme bracket of 80 per cent, Net income for prewar pebut in only one case whore the corporation pays excess profits rather than war profits tax, would the substitution riod ].. 53,516,727 of a 60 per cent for an 80 per cent bracket affect the tax." 10 per cent of changes in When I speak of the increased excess profits tax under capital 26,104, 734 consideration by your committee, I mean the so-called 30-50-80 per cent plan without the 10 per cent minimum. 10 per cent of invested capi- All of the steel companies will, of course, pay far greater tal for taxable year 79, 624,461 taxes under the war profits method than under the excess A. War excess profits tax 100,105,089 profits method. B. Excess profits tax under the act of Octo- From A Company the war profits method will, it is esti- ber 3, 1917 42,586,014 mated, produce nearly $100,000,000 more than the excess C. Excess profits tax as proposed in section profits tax, even at the increased rates proposed by your 301 ~ 73,358,666 committee. I). Same as C except change in rate 63,595,568 From B Company 59,000,000 more, and from C Company The R-l Company would pay $29,000,000 war.profits tax $4,500,000 more. D Company would, it is estimated, pay and only $23,000,000 under the increased excess profits $100,000 more under the war profits tax methods than under tax rates. the excess profits tax method at the increased rate proposed Dr. Adams has already presented to you a table showing by your committee. beyond a shadow of a doubt in great detail, from examina- E Company would pay 83,400,000 more. F Company tion of reports of upward of 8,000 corporations, how the $9,200,000 more. G Company $2,300,000 more. II Com- burden of the graduated excess profits tax falls more heavpany $150,000 more. I Company $1,300,000 more. J ily on small business than on big business. Company $1,900,000 more under the war profits tax than I should like to refer to and adopt that table and call it to the excess profits tax. K Company would have no excess your attention as a conclusive and controlling argument profits tax to pay under the increased rates proposed by against the increased excess-profits tax rates proposed by your committee, although it did have to pay §275,000 excess your committee. The highest rates are paid by the smallprofits tax under the existing excess profits tax law. est companies. The 80 per cent rate which the committee L Company would have to pay more than $4,000,000 more, proposes to apply as a maximum excess-profits tax rate, under the war profits tax than under the increased excess will not be paid by more than one, if hy one, great corpoprofits tax which has been proposed by your committee. ration in the United States. M Company would have to pay $750,000 more. N Com- To impose a tax some hundreds of thousands of dollars pany $900,000 more. O Company $400,000 more. P Com- greater upon the S Company your rates would burden unpany $1,100,000 more. Q Company $1,200,000 more under duly, even to the point of ruin, innumerable small business the war profits tax than under the increased excess profits concerns. tax. Remember that the excess-profits tax you impose de- Among the conspicuous companies, certain of the R pends not upon the income of the corporation, but upon the group, the S Company and the T Company are the only relation between the income of the corporation and its Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
850 FEDERAL RESEEVE BULLETIN. SEPTEMBER 1,1918. invested capital arbitrarily ascertained and that by so you, gentlemen, and upon me. For years, even under the much as you increase the graduation of the tax, you mul- tax law of 1917, taxes have been in such relatively modertiply the burden of the errors incident to such ascertain- ate amounts as in only exceptional cases to produce hardment. It is from the lower brackets that the revenue is ship . Should the Congress enact a law this year calculated produced. It is from the upper brackets that the hardship to produce revenue of $8,000,000,000, it will do so as a and inequality results. necessary war measure, carrying with it a heavy burden I have here a table showing that of the larger coal com- upon the business and prosperity of the country which can panies with alleged capital ranging from §2,000,000 to only be borne if the burden falls equally and justly accord- $120,000,000, the W-l Company pays no excess profits tax; ing to the ability of the taxpayer to meet it. No arbitrary the W-2 Company pays 37 per cent of its income in excess rule, no foresight of yours can deal with every case in a profits taxes; the W-3 Company pays 7 per cent; the W-4 manner to produce justice, equity, and avoid ruin. In Company, 36 per cent; the W-5 Company, 27 per cent, and order to equalize taxation, authority must be conferred the W-6 Company, 5 per cent. upon the Commissioner of Internal Revenue acting with On the other hand, of a group of six small coal com- the advice of a board of advisors and subject to the appanies whose capital ranges from $4,000 to $97,000, all proval of the Secretary of the Treasury. These are war pay excess profits taxes in amounts ranging from 52 per measures and require to be dealt with as such. cent to 56 per cent of their entire income. Another not less important element in this situation is This comparison of the large coal companies with the the importance of having the measure you do present to small coal companies is a conspicuous example of the dis- the Congress one in which advantage is taken of the expericrimination of the excess profits tax law against the small ence and knowledge of the subject which experts of the concern and in favor of the big concern. Bureau of Internal Revenue have accumulated in the past I hope we shall get, by the war profits tax, greater and nine months of intimate association and experience with more equal taxes from all those who have profited in coal. the operation of the existing law. I venture to urge upon you, therefore, a careful consideration of the recommendations which they will present to you. Such subjects as c a a I b p n l i v e t e a s y l, t e e t a d a r x . - c t N o a y m x e e t a e a b i r n . f le o - r E pr t x o a c f x e i . t s s s (p R i t n e a a c r t x c o i o e m t n o o e t) f . a th m e o r e t l i e z m ati e o n n ts , d o e f p r c e a c l i c a u ti l o at n i , o n e tc o . f , e e n v t e e r r y in g t a p x r , o f a o r u e n d s l u y b j i e n c to ts upon which the experts of the Internal Revenue Bureau, such as Dr. Adams, here, are able to speak with greater LARGER COMPANIES. knowledge than the Secretary of the Treasury or members W-l $30,864,696 §2,154,233 No tax. 0.0 W-2 10,200,747 5,564,657 $2,114,104 37.98 of the Ways and Means Committee. I beg you, therefore, W-3 120,785,010 13,685,997 1,005,739 7 to seek and act upon their advice in these matters. W-4 6,608,168 3,154,491 1,125; 547 36 W-5 2,250,959 813,838 226,591 27.84 Turning now from the subject of profits taxes to the sub- W-6 . ... 9,625,189 1,280,478 66,742 5.57 ject of income taxes, I ask you to bear with me while I read SMALLER COMPANIES. to you certain paragraphs in my letter of June 5 relating W-7 . . . 29,821 54,148 28,324 52.31 to the normal income tax: W-8 6,553 29,039 15,309 52. 69 W-9 4,692 35,978 19,562 54.37 "I hope that it will not be necessary to increase the W-10 14,287 63,301 35,345 55.87 W-ll 97,137 186,720 99,970 53. 54 interest rate on Government bonds. The number of sub- W-12 65,514 211,833 18,833 56.03 scribers to the three Liberty loans aggregated 30,000,000, The people who subscribed are impatient of those who have not. Various plans have been urged upon me for forcing To summarize, again, my views concerning the war prof- the people to buy Liberty bonds. The man of small means its tax and excess profits tax, let me say that there should who buys a §100 bond wants his neighbor to do so, too. There is a popular demand also for high taxes upon war be a war profits tax at a flat rate of 80 per cent and that the profits. There is also a popular demand that all the people excess profits tax should not be depended upon to produce should contribute to financing the war. There should, increased revenue, but that modifications are desirable to therefore, be a substantial increase in the normal income reduce the inequalities of the present law. Should you tax rate and a high tax should be levied upon so-called unearned than on earned incomes. Income derived from determine, in making such modifications, to make altera- Liberty bonds would be exempt from this taxation and the tions in the rates, they should be made with a view to relation between income from liberty bonds and income producing the same amount of revenue as during the past from other securities would be readjusted without increasyear from the excess profits tax and in a way more equal, ing the rate of interest on Liberty bonds. It would not tax the patriotic purchasers of Liberty bonds on their less fraught with hardship to small business concerns. If holdings, but it would weigh heavily upon the shirkers you adopt this view, you will not increase the rates in the who haye not bought them. It would make the return upper brackets though you may increase some of the lower from Liberty bonds compare favorably with the return rates, while increasing the exemption and eliminating the from other securities. It would give the Government's bonds an essential and necessary advantage over those of inequalities. corporate borrowers and would very greatly decrease the The imposition of these great taxes, calculated to pro- relative advantage which State and municipal bonds now duce §8,000,000,000 in one year, casts a heavy burden upon enjoy through the total exemption which they carry. It Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
SEPTEMBER 1,1918. FEDERAL RESERVE BULLETIN. 851 would produce a gradual readjustment of the situation in taxes, bonds of States and local authorities issued herethe investment markets instead of an abrupt one, as would after. This involves a very difficult and troublesome be the case if the interest rate on Liberty bonds should be constitutional question. On the other hand, I underincreased. A normal tax falls upon all alike. Therefore, as I stand that the committee has not adopted a suggestion pointed out in my statement before the Ways and Means made by the Treasury Department to the effect that the Committee last summer, there is not the same objection exemption, whether in respect to bonds heretofore or to the exemption from normal income taxes as there is hereafter issued, should be spread over all the brackets in to the exemption from surtaxes. A substantial increase in the normal income tax is the soundest and surest way the surtax and not, as now, in effect deducted from the of stabilizing the price of Government bonds. If we have highest bracket. I hope, very much, that it will be deto increase the interest rate on Government bonds, the termined to adopt this suggestion of the Treasury Departincreased rate may continue for 10 to 30 years and ment, which would, I believe, be constitutional, would in some of the bonds which we have issued will go to great premiums not long after the war is over. If we make the a large measure reduce the disadvantage under which bonds at the present rate more attractive by increasing Liberty bonds now are by comparison with wholly exempt the normal tax, then the decrease in taxation which will bonds, would produce revenue, it is estimated, in amount follow the close of the war will automatically adjust the situation. I believe that to stabilize the price of Govern- from $12,000,000 to $20,000,000 directly, and indirectly ment bonds by first increasing and subsequently reducing close the door to a great reduction in revenue which I the normal income taxes, from which the holders of the anticipate as a result of the increased income taxes now bonds are exempt, is sound finance and sound economics. in contemplation, forcing large taxpayers into exempt (3) That there should be a substantial increase in the securities. * amount of normal income tax upon so-called unearned incomes. Under existing law earned incomes above In that connection, in the consideration which you give certain exemptions are taxed 4 per cent as an income tax to the question of increasing the rates of supertaxes, I and 8 per cent as an excess profits tax, making a total of call your attention to the importance of not increasing 1.2 per cent, while unearned incomes, derived from securthese rates to a point where they will be destructive ities, etc., are taxed only 4 per cent. The 8 per cent tax should be recognized as an income tax and the rate of rather than productive of revenue. Obviously, a point 12 per cent (4 per cent normal and 8 per cent excess may be reached where, by making the supertax rates profits) should be retained in respect to earned incomes, too high in the higher brackets, persons subject to these while a higher rate than 12 per cent should be imposed topmost rates will find it to their advantage to dispose on unearned incomes. of their taxable securities in the market and invest the I can not profitably enlarge upon what I thus wrote proceeds in exempt securities. more than two months ago, except to say that the failure In conclusion, let me remind you of the urgency of to continue what is, in effect, a 12 per cent tax upon prompt enactment of this revenue bill. The considernormal earned incomes and the failure to enact a differations which made such an act obviously necessary were ential of say 3 per cent against unearned incomes, making laid before the President, and by him before the Congress the tax on the latter 15 per cent, will, it is estimated by on May 27, as I have earlier stated. To quote the Presithe Treasury Department, deprive us of additional revenue dent's message: to the amount of §145,000,000, while at the same time seriously jeopardizing the program for the issue of Liberty "We can not in fairness wait until the end of the fiscal year is at hand to apprise our people of the taxes they bonds of the fourth Liberty loan at 4\ per cent, by reducing must pay on their earnings of the present calendar year, the value of the exemption to the holders of those bonds whose accountings and expenditures will then be closed. from normal income taxesby an amount equal to one- We can not get increased taxes unless the country knows ( third; from 15 per cent to 10 per cent. what they are to be and practices the necessary economy to make them available. Definiteness, early definiteness, With regard to luxury taxes: I have not had an oppor- as to what its tasks are to be is absolutely necessary for tunity to examine the tentative conclusions of the com- the successful administration of the Treasury; it can not mittee. I know that suggestions were invited by your frame fair and workable regulations in haste; and it must frame its regulations in haste if it is not to know its exact chairman and furnished by the Treasury Department, task until the very eve of its performance.'' and I wish to say that a war revenue act such as this must be should be made with a broader point of view than that and again: merely of producing revenue—from the point of view "Moreover, taxes of that sort will not be paid until also of curtailing wasteful expenditure. From this point the June of next year, and the Treasury must anticipate of view, such taxes as that proposed upon the employment them. It must use the money they are to produce before of numerous domestic servants are of great importance. it is due. It must sell short-time certificates of indebtedness. In the autumn a much larger sale of long-time Turning to another matter which is of great interest and bonds must be effected than has yet been attempted. importance in connection with the sale of Liberty bonds, What are the bankers to think of the certificates if they I call your attention to the question of exemption carried do not certainly know where the money is to come from by bonds of the United States issued before September which is to take them up? And how are investors to approach the purchase of bonds with any sort of confidence 24, 1917, and bonds of States and local authorities, from of knowledge of their own affairs if they do not know what United States graduated income surtaxes. I understand taxes they are to pay and what economies and adjustthat the committee proposes to make, subject to such sur- ments of their business they must effect.;; Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
852 FEDERAL RESERVE BULLETIN. SEPTEMBER 1, 1918. When I read in the newspapers that a legislative pro- "In these circumstances I hope that you may deem it gram in relation to the passage of the revenue bills was in wise to ask Mr. Kitchin to present the revenue bill to the House immediately upon its reconvening and to expedite contemplation which did not insure its passage before its passage over all other measures, and that you may ask the end of October, I was greatly concerned and I tele- Senator Simmons to arrange for its expeditious passage in graphed to the President under date of July 25 as follows: the Senate. Knowing as I do the imperative necessities of the Treasury, which are becoming more pro- " Newspapers indicate that effort will be made to give nounced each day with the constantly increasing approwaterpower bill precedence over revenue bill when priations and other demands upon it, I consider it vital that House reconvenes August 19, and that revenue bill may the new revenue bill shall become a law before the end of not be acted upon by House until early in September. September. Of course I know that you can Use only your The imperative demands on the Treasury compelled me great influence to secure this result, and the purpose of this to plan some time ago for beginning, at the latest, a fourth telegram is to beg you to exert your influence in this direc- Liberty loan campaign September 28 and ending October tion immediately.'' 19. This would leave free for political campaign little more than two weeks before election. I should fear to I was gratified shortly thereafter to receive a telegram offer the 4J per cent Liberty bonds authorized by the from your chairman, dated July 31, as follows: fourth Liberty bond bill for subscription before enactment of the revenue bill. Perhaps you may recall that "The President has handed me a copy of your telegram an important ground for our insistence upon prompt of July 25. I entirely agree with you. The committee revenue legislation was the conviction that new taxes hopes to have the bill ready for report and immediate con should be determined upon before next Liberty loan sideration in the House by August 19; every effort is being campaign, both in order to give the bonds the benefit of made to this end." exemption from definitely increased normal income and I can only add, gentlemen, that it is imperative that we other taxes and to give the people definite knowledge of their tax liabilities before they are asked to subscribe have the revenue bill enacted into law before the opening for bonds. Another and most important reason for earliest of the fourth Liberty loan campaign on September 28. possible tax legislation was to enable me to sell short time Treasury certificates of indebtedness in anticipation The Ways and Means Committee of the of and receivable for income and excess profit taxes. House of Representatives on September 3 re- Protracted delay even in writing the new law is interfering with my plans and prolonged delay in its enactment would, ported a new war revenue measure after conin my judgment, seriously jeopardize the ability of the ferences with the Secretary of the Treasury Treasury to sell sufficient Treasury certificates to finance the Treasury in the intervals between Liberty loans. and his representatives. The financial operations of the Treasury are so colossal now that it will impose an undue strain upon the resources of the banks if we throw upon them alone the ^•..^ Progress in Curtailment of Nonessentials.1 burden of taking short time certificates of indebtedness. We must supplement the resources of the banks by selling The Council of National Defense recently Treasury certificates of indebtedness available for the undertook an investigation for the purpose of payment of income and excess profits taxes in order to determining whether purchases by civilians reach the great number of taxpayers and to transfer to them through anticipation by them of their tax payments in the United States have been increasing or a large part of the load of temporary Treasury financing decreasing during the war period. Informainstead of imposing it wholly upon the banks. To post- tion was obtained from large and representapone the Liberty loan campaign beyond September 28 tive concerns as well as from smaller merchants would, on account of the impending elections, necessitate delaying it until the middle of November, which would and from leaders of labor organizations. This make it conclude about the 7th or 10th of December, afforded a means of ascertaining the broad This would mean that proceeds of fourth Liberty loan general tendencies in buying and the degree would not be available before middle of December and of economy that is being exercised in the purwould necessitate a large increase in the amount of the offering, forcing it probably to eight billion dollars. It chase of the principal classes of goods. One would also compel the Treasury to refund about three of the most illuminating statements was furbillion dollars of short time Treasury certificates which nished by a very large business house dealing have already been or shortly will be issued pursuant to directly with consumers throughout the entire program announced by me on June 12 to banks and trust companies throughout country, all of which mature prior country. Because of the diversity of merto the middle of December, as they were issued in con- chandise handled and customers served, the formity with the plan to offer the fourth Liberty loan business of this firm may be considered a reaabout September 28. I doubt if this refunding could be sonably accurate barometer of comparative done, coming as it will in the middle of the crop-moving season and at a time when the resources of the banks will purchasing activities. The following table, be taxed to the utmost. Therefore a material change in compiled from its records, shows a comparison the date for the fourth Liberty loan seems to be impossible. 1 From Commerce Reports Tuesday, August 6. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
SEPTEMBER 1,1918. FEDERAL RESERVE BULLETIN". 853 between the first five months of 1917 and 1918 the demand for men's hats, dress shirts, and on a quantity as well as a dollar-and-cent the miscellaneous lines generally carried under basis; where there was no marked change in this head. In caps, trunks, suitcases, etc., quantity the spaces are left blank: there has been a smaller decrease, while the number of men's work shirts sold is at least Quantity. Dollars. equal to that for 1917. Classes of goods. Counting women's dresses exclusively, these Increase. Decrease.; Increase. Decrease. would show a quantity increase of about 32 per cent. TJ;te decrease, however, in suits, Clothing: j Per cent. Per cent. Per cent. Per cent. skirts, and misses' dresses is sufficient to Boys' i 3 13 Men's 17 23 offset this increase and bring the entire line Work 48 96 down to a volume only equal to that of last Men's furnishing goods... 20 11 Women's— year. (Women's dresses represent more than Suits, skirts, dresses.. 32 Coats and waists 38 25 per cent of the entire line). Millinery, corsets, etc. Coats and waists show a small increase Infants' and children's 19 (5 per cent) in volume, with a 36 per cent in- Underwear: Men's and women's knit, crease in value. The latter is not due entirely and hosiery to increased cost, as there is a marked demand Muslin j 12 ! 33 for the higher-priced better garments. Household furnishings: j Furniture ;. Millinery, corsets, etc., show a slight decrease Dr e a t p s, e s a , n d c u q r u ta il i t n s s , blank- j l. in quantity, which may be due as much to a Carpets and rugs i. growing simplicity in style as to a dropping off Crockery and glassware..:. 42 Hardw are in demand or desire to buy. Luxuries and semiluxurics: j Knit underwear shows a quantity decrease of Jewelry, watches, and I diamonds ! 17 13 per cent. Taking women's alone, the decrease Books and stationery '•.. 10 Toilet articles, cigars, ! would be only 5 per cent. In hosiery the quantobacco, drug sundries.!. io ! l tity decrease in all lines is about 8 per cent. Pianos and organs i 22 j 33J Automobile and bicycle j Separating the women's and children's from the supplies \ 30 52 men's, shows a decrease of 7 per cent for the former and 11 per cent for the latter—bringing CONCLUSIONS ARRIVED AT BY COMPANY. out a fact that appears to be true of all wearing In addition to the above statement the con- apparel, namely, that women are buying more cern formulated its conclusions, arrived at not freely than men. Muslin underwear, aprons, only from its own business, but from such in- etc., show a decided increase in quantity; this formation as has come to it from various reliable is entirely a women's line. sources in all parts of the United States. A In shoes the total quantity decrease is about summary of these conclusions follows: 33 per cent. The greatest decrease, 47 per Boys' clothing shows a marked decrease in cent, is in the men's lines, while the smallest the quantity purchased in the higher-priced decrease, 26 per cent, is in rubbers. Women's lines, while knee pants, rompers, blouses, and shoes show a decrease of 35 per cent and chilall items of small money value show a sufficient dren's 27 per cent. It would seem that this increase to offset this and bring about a slight condition is general throughout the country, increase in the whole line. the shoe business everywhere showing a de- As regards men's clothing, the greatest de- cided decrease. The rapid and amazing increase is in the clothing intended for young crease in price, the "temporary craze for freak men; this is possibly sufficient to account for styles last year," the comparative facility of the entire falling off in volume. compromising on this item of apparel, and the Work clothes show a great increase, with the withdrawal from the buying population of percentage of value very much larger than the upward of a million and a half young men—all percentage of quantity. This latter fact is due these factors contribute to bring about the to the radical increase in the prices of raw condition indicated. material entering into the manufacture of As regards furniture, the slight decrease in these goods, such as duck and denims. the heavier lines shown in this company's busi- Men's furnishing goods show the largest de- ness may be due as much to the congested crease in quantity of all the men's apparel traffic conditions, discouraging purchasing lines. There has been a marked falling oil in from a distance, as to a decrease in demand. 78653—IS 8 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
854 FEDERAL RESERVE BULLETIN. SEPTEMBER 1,1918. Curtains, drapes, and floor coverings show from reliable sources as to the business being about an equal quantity, so far as this com- done by the various makers of popular types pany's business is concerned. Yet from very is conflicting. It is reported that one of the reliable sources, such as the largest manufac- best-advertised makes is showing 100 per cent turers themselves comes the report of business increase, while an equally well-advertised and being curtailed at least one third. The scarcity well-known company is running far behind its of raw materials and the difficulty in obtaining last year's output. However, the concern them may have much to do with this condi- showing the large increase has a small business tion. In rugs there is an unusually good compared with the one showing the decrease, demand for the smaller sizes, with a consider- in addition to which the latter, it is said, has able falling off in the larger. turned over part of its equipment for Govern- Crockery and glassware show a large decrease ment work. All the minor phonograph comin quantity and a very marked discrepancy panies appear to be showing a considerable inbetween quantity and dollar-and-cent sales, crease in their sales. because of the shortage of imported wares and There is a very great demand for pianos and the scarcity of the domestic makes, together organs—at least as shown by the business of with the very great advance in price, the concern supplying the information, which is running 22 per cent ahead on a quantity STATEMENTS INDICATE INCREASED SALES OF basis. LUXURIES. Analyzing its business in automobile and bicycle supplies, the company expresses the There is a decided increase in sales of small- opinion that the quantity increase of 30 per sized diamonds and a falling off in sizes from cent is largely, if not entirely, due to a big de- -|- carat upward. This is due, no doubt, to mand on the part of industrial concerns and the great increase in price and the tendency business firms that emplo}^ salesmen, solicitof people to buy diamonds by price alone; ors, collectors, and repair men—men who are that is, they have, perhaps, $75 or $100 to using automobiles to make their rounds, reput in a stone, and it brings them a much quiring accessories, new parts, and tires. The smaller jewel than the same amount would large demand for bicycles and sundries seems procure a year or two ago. to come from industrial centers, indicating Watches are in great demand, especially that workmen are using them in going to and wrist watches, which have been enormously from the plants. An abnormal increase in popularized by the war. bicycle tires and parts shows that old bicycles Fountain pens and stationery show a de- are being used and put in shape. cidedly increased demand, for the obvious reason that so many men are leaving their FIRM: BELIEVES WOMEN ARE PURCHASING MORE. homes. There is a very great decrease in the sale of books of fiction, while there is a very Drawing general conclusions from its own fair demand for technical books on machinery, business and the information obtained from motors, etc. other sources, this firm states, in the first place, The quantity of cigars and tobacco sold that in merchandise for women's exclusive use shows a very noticeable increase, which can it is certain that sales are increasing. "This is be accounted for by the slogan " Smokes for plausible," it says, " because thousands of the soldiers.7' women never before employed are now earning Face powders and creams show an increase, very fair wages, while other thousands prewhile toilet articles, such as manicure and viously employed are enjoying greatly inshaving sets, brushes, and combs, show a creased wages, making for an increased dedecrease. mand in women's wearing apparel in made-up As the company furnishing this information garments as well as materials for making them, has only recently become an aggressive con- which even high prices have been unable to tender for phonograph business, it is unable, keep down." from its own experience, to make comparisons. Luxuries and semiluxuries, such as musical However, since it entered the field in earnest instruments, watches, jewelry, and diamonds, in the fall of 1917 its business has far exceeded show an increase in quantity as well as in dolthe most sanguine expectations. Information lars, giving an impression of general prosperity. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
iSfSPTEMBKIl 1, 1918. FEDERAL RESERVE BULLETIN. 855 DEGREE OF ECONOMY PRACTICED—CONDITIONS trust companies and State banks in some of CONSIDERED FROM GEOGRAPHICAL STAND- the leading cities, the latest date figures being POINT. considerably in excess of the corresponding The company expresses the belief (and this figures as at close of the year 1917, though opinion is presented simply as the estimate and somewhat below the figures for May of the impression of this firm) that economy is being present year, as may be seen from the subpracticed by well-to-do persons and those of joined tables: moderate means, while the increased compensation that is being received by large numbers Acceptance liabilities of national banks in principal cities of people who have previously been somewhat of the United States on specified dates. more restricted in purchasing capacity has made it possible for them to buy more freely [In thousands of dollars; i.e., 000's omitted.] now of the articles that might be considered luxuries. Dec. 31. Mar. 4, Mav 10, June 29, 1917. 191S. 1918. 1918. Discussing the question from the standpoint of geographical location, the company says New York 8100,382 S95,234 $103,754 $96,517 that in the South, especially through the cot- Boston 42,740 45,134 44,290 45,549 Philadelphia. 14,125 14,694 17,789 18,315 ton-growing States, its business is better than Pittsburgh.. . 1,917 2,502 3,336 3 485 ever before, and purchases of all classes of Cleveland. 5,198 7,936 7,002 5,283 Cincinnati.... 1,278 980 946 612 goods are being very freely made. Richmond... 2,772 4,402 3,182 3,085 Baltimore... 2,641 2,492 4,198 2 369 In the far West the civilian population, Atlanta.. 450 588 11,000 715 while not so liberal in expenditures as in the C N h ew ar l O es r t l o e n a , n S s. C 2 1 , , 6 27 74 4 2 1 ,4 6 7 6 4 3 1 1 , , 2 3 2 4 3 5 1,4 8 2 2 7 1 South, is buying freely and in greater quanti- Chicago... 10,122 15,764 22,493 18,857 Minneapolis 808 595 1,262 1,624 ties than in previous years. St. Louis 2,953 3,913 3,724 1 786 Dallas 1,775 2,850 4,295 1,900 In the northern States of the Middle West San Francisco. 5,708 7,185 8,608 9,474 buying is more conservative and more re- Another 20,373 20,758 21,876 19,986 stricted to staples and necessities, but the Tot&l . 217,190 230,164 250,323 231,805 volume is at least equal to the average during the previous one or two years. Available data regarding acceptance liabil- In the East there is a rather marked deities of other American banking institutions in crease in quantity of purchases, especially in so-called nonessentials; in fact, it is even leading cities on or about the dates of the last quite noticeable in what are usually classed as three calls made by the Comptroller of the necessities. Currency are as follows: [In thousands of dollars; i. e., 000's omitted.] Development of the Acceptance Business. Dec. 31, Mar. 4, May 10, June 29, 1017. 1918. 1918. 1918. During the present year aggregate acceptance liabilities of national banks, as shown in All national banks $217,190 $230,164 $250,323 8231,805 Trust companies in Greater the Comptroller's Abstracts, show an increase New York 100,196 1104,920 121,274 2114,177 State banks in Greater New from 217.2 millions to 250.3 millions on May York 5,586 7,345 2 8,345 10 and a subsequent decline to 231.8 millions T T r r u us s t t c c o o m m p p a a n n i i e e s s i i n n B B a o lt s i t m o o n r . e .. 137" 18,673 ' "*i8," 497" 1 1 9 , , 1 90 1 8 3 State banks and trust com- 470 on June 29. A similar development is indi- panies in St. Louis 1,094 5,122 9,280 7,072 cated for the acceptance business of the i Mar. 14. 5 June 20. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
856 FEDERAL KESEKVE BULLETIN. SEPTEMBER 1,1918. The Savings Banks and Liberty Bonds. compiled by the section from returns supplied by a majority of the mutual savings banks The following table supplied by the savings of the country for approximately August 1, bank section of the American Bankers' Asso- 1918: ciation furnishes information which has been o h f P b o r L o l e d n i s b i d e n e s n g r . t s ty s T l c o u o r a a n i t n n p a p d s l t a i 1 s o i 3 u , d n , 2 . b s , - , T l t o o i m a a a t n n l e a d s p l n p a 1 t 3 s y a , . , r - 2 - , p P m a r p e o r a n t p i i t d a o l p r o t l p i a n a o n y n . - p e t T h e rt n r o y e s t e e a l l o L o a e f i x n b t - s h - . eC o e f e r d i t n i n f d e ic s e a s b t . e t- s Per cent. Maine 82.909,624 $72,777 §635,395 72.8 $1,102 §3,478,000 New Hampshire 1.738,850 452,020 875,165 65.2 3,312 2,410,500 Vermont 615,050 126,800 234,950 75.0 750 600,000 Massachusetts 18,463,235 4,050,771 9,875,886 71.2 35,756 16,510,500 Rhode Island 284,500 81,783 102,500 33.0 150 385,000 Connecticut '7,981,271 935,947 5,367,500 65.8 18,914 6,889,000 New England 31,992,530 5,720,098 17,091,396 83.8 59,984 30,273,000 New York 38,633,003 6,244,891 27,373,580 71.5 76,212 30,175,000 New Jersey 3,208,700 630,512 1,790,700 65.0 4,481 8,315,000 Delaware 376,000 4,200 199,050 90.0 1,400 690,000 Pennsylvania 4,654,345 122,312 1,548,400 40.7 43,159 17,470,000 Maryland 3,961,600 1,563,900 3,929,350 75.0 61,457 13,248,000 Eastern States 50,833,648 8,565,815 34,841,080 I 68.45 I 186,709 Southern States 186,750 80,000 475,000 65,0 1,000 303,500 Middle West States 4,430,663 832,294 5,428,000 69.2 30,316 12,944,000 Western States 116,600 89,071 291,250 90.0 800 187,500 Pacific States 4,160,713 1,724,555 14,776,060 67.1 38,275 17,196,000 Total United States 91,720,904 17,011,835 72,902,786 72.8 317,084 130,802,000 Commercial Failures Reported. districts. Moreover, the increases are small in most instances, whereas important decreases Commercial insolvencies in the United States appear in all other cases. during three weeks of August, as reported to R. G. Dun & Co. number only 456, against 777 ; Failures during July, in the corresponding period last year. The statement for July, the latest month for which Number. Liabilities. complete statistics are available, discloses only Districts. 786 business reverses, exclusive of banking and 1918 1917 1918 1917 other fiduciary suspensions, for the moderate sum of $9,789,572, as compared with 1,137 F Se ir c s o t nd 14 9 1 8 1 2 0 2 8 4 2 I , , 1 4 8 5 8 7 , , 1 3 4 3 5 0 SI 3 , , 7 0 5 6 2 1 , , 2 6 8 2 0 0 Third 34 54 728,336 658,693 defaults, involving $17,240,424, in July, 1917. Fourth 71 95 464,255 1,255,521 Fifth 27 71 126,420 542,271 Not only are the July failures the smallest Sixth 47 83 855,044 1.602,345 Seventh 112 154 1,355,346 2,878,775 both in number and amount of the present Eighth 31 67 173,202 475,182 Ninth 28 29 187,904 165,877 year but so few insolvencies have not occurred Tenth 39 50 858,034 509,239 in any previous month back to July, 1907, and E T l w e e v l e f n th th .. . . . . . 1 3 2 3 5 14 6 1 1 1,0 3 8 1 4 1 , , 5 0 2 3 4 2 4, 2 0 9 4 2 6 , , 5 0 8 3 9 2 the indebtedness is lighter than in all months Total 1,137 9,789,572 J 17,240,424 since May, 1910. Analyzed according to Federal Reserve districts, the July figures show Fiduciary Powers. more or less reduction in number, in comparison with July, 1917, in all of the twelve districts, The applications of the following banks for and the liabilities are smaller than last year in permission to act under section ll(k) of the seven of the twelve districts, the exceptions Federal Reserve Act have been approved since being the first, third, ninth, tenth, and eleventh the issue of the August BULLETIN : Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
SEPTEMBER 1,1918. FEDERAL RESERVE BULLETIN. 857 DISTRICT No. 1. Trustee, executor, administrator, and registrar of stocks Capital. Surplus. res T o o u t r a c l es. and bonds: National Union Bank, Boston, Mass. District No. 4—Continued. DISTRICT No. 3. Gibsonburg Banking Co., Gib- Trustee, executor, and administrator: Ro s s o s n fo b r u d r g S , a O vi h n i g o s Bank, Rossford, §50,000 517,500 $701,268 Conestoga National Bank, Lancaster, Pa. Ohio 50,000 50,000 Provident Savings Bank & Trust DISTRICT No. 5. Co., Cincinnati, Ohio 1,400,000 1,000,000 13,356,480 Commercial & Savings Bank Co., Trustee, executor, administrator, and registrar of stocks Buckeye City, Ohio 25,000 2,750 189,417 Peoples Savings & Banking Co., and bonds: Barberton, Ohio 100,000 20,000 1,176,348 First National Bank, New Windsor, Md. Farmers & Citizens Banking Co., Milan, Ohio 25,000 8,000 358,050 DISTRICT NO. 7. District No. 6. Trustee, executor, administrator, and registrar of stocks and bonds: C N o ic m h m ols e o rc n i al B B a a n n k k , & Ch T es r t u e s r, t S C . o. C , 100,000 65,000 866,556 City National Bank, Kankakee, 111. Union, S. C 75,000 25,000 649,342 Trustee, executor, and administrator: Union Bank, Richmond, Va 219,750 300,000 2,486,408 Citizens National Bank, Royal, Iowa. District No. 6. Merchants Bank, Mobile, Ala 200,000 200,000 4,255,52?, State Banks and Trust Companies Admitted. District No. 7. State Savings Bank, Missouri The following list shows the State banks and Valley, Iowa 50,000 10,000 474,370 The Northern Trust Co., Chicago, trust companies which have been admitted to 2,000,000 2,000,000 37,995,999 LoveTf State* * Bank",* Monticello* membership in the Federal Reserve system Iowa 200,000 100,000 1,152,761 Illinois Trust & Savings Bank, during the month of August. Chicago, 111 5,000,000 11,000,000 112,487,623 Farmers Savings Bank, Sac City, Seven hundred and thirteen State institu- Iowa 50,000 20,000 587,437 Winnesheik bounty State Bank, tions are now members of the system, having Decorah, Iowa 150,000 50,000 1,860,924 Farmers State Bank, Charter a total capital of $318,411,556, total surplus Oak, Iowa 40,000 5,000 416,313 Iowa State Savings Bank, Cedar of $382,536,501, and total resources of Rapids, Iowa 100,000 25,000 1,959,394 American Trust Co., South Bend, $6,609,410,297. Ind 200,000 128,000 2,901,942 Bank o[ Baraboo, Baraboo, Wis.. 100,000 50,000 1,815,114 City Trust & Savings Bank Grand Rapids, Mich 200,000 40,000 2,456,666 State Bank of Platteville, Platte- Capital. Surplus. ville,Wis 50,000 10,000 1,003,053 Alta Vista Savings Bank, Alta Vista, Iowa 30,000 10,000 382,248 District No. 1. Bankers Trust Co., Des Moines, Iowa 1,000,000 100,000 3,007,770 New Britain Trust Co., New Dickinson Trust Co., Richmond, Britain, Conn 8400,000 8200,000 i 86,186,729 Ind 200,000 125,000 2,173,890 Peoples State Bank, Mushing, District No. P. Mich ! ... 25,000 15,000 207,910 Cherokee State Bank, Cherokee, Oyster Bay Bank, Oyster Bay, Iowa 75,000 75,000 1,259,906 50,000 50,000 1,170,712 Iowa County Bank, Mineral Point, Jefferson Trust Co., Hoboken,N.J. 200,000. 50,000 3,119,673 Wis 100,000 50,000 1,496,482 Erie County Trust Co., East Wakefield State Bank, Morenci, Aurora, N. Y. . 100,000 37,500 1,009,247 Mich 50,000 30,000 S31,30S Westfield Trust Co., Westficld, Gilbert Savings Bank, Gilbert, N. J 100,000 20,000 2,100,064 Iowa 25,000 5,000 233,349 Bank of Amity ville, Amityville, State Bank of Ellsworth, Ells- N.Y 25,000 50,000 562,547 worth, Iowa 35,000 10,000 283,554 Bank of Westbury, Wostbury, Citizens Savings Bank, Decorah, N.Y | 25,000 5,000 465,079 Iowa 50,000 50,000 662,892 The Herkimer County Trust Co., First Trust & Savings Bank, Little Falls, N. Y 350,000 350,000 4,113,350 Winamac,Ind 40,000 110,669 South Norwalk Trust Co., South i First State Bank of Barrington, Norwalk, Conn ! 100,000 78,000 2,717,308 Barrington, 111 50,000 10,000 372,807 Monticello State Bank, Monti- District No. 3. I Pe c o e p ll l o e , s Io S w av a i ngs Bank, Coopers-r 200,000 200,000 2,081,600 The Provident Life & Trust Co., viile,Mich 25,000 1,000 227,409 Philadelphia, Pa 2,000,000 5,000,000 113,749,496 Elkader State Bank, Elkader, The West Philadelphia Title & Iowa 50,000 15,000 791,744 Trust Co., Philadelphia, Pa 500,000 500,000 5,337,006 Pontiac Savings Bank, Pontiac, Mich 200,000 65,000 4,695,893 District No. /,. Bank of Sheboygan, Sheboygan, Wis 100,000 200,000 3,608,274 Home Banking Co., Gibsonburg, Clinton County Bank & Trust Co., Ohio 25,000 9,000 552,009 Frankfort, Ind 100,000 9,000 957,633 The Chagrin Falls Banking Co., Citizens State Bank, Big Rapids, Chagrin Falls, Ohio 50,000 45,000 755,950 Mich 50,000 25,000 891,380 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
858 FEDERAL RESERVE BULLETIN. SEPTEMBER 1,1918. Capital. Surplus. res T o o u t r a c l es. Capital. Surplus. res T o o u t r a c l es. District No. 7—Continued. District No. 9—Continued. Kent State Bank, Kentland, Ind.. §50,000 832,000 §402,106 Central Bank, St. Paul, Minn.... $200,000 §40,000 31,948,490 State Savings Bank, Ute, Iowa... 50,000 15,000 385,476 Lincoln County Bank, Merrill, Green Lake State Bank, Green Wis 100,000 25,000 1,268,807 Lake, Wis 25,000 10,000 353,863 Ravalli County Bank, Hamilton, Iowa State Savings Bank, Fair- M ont 50,000 12,500 393,199 field, Iowa 100,000 100,000 1,623,632 The State Bank of Shannon, District No. 10. Shannon, 111 25,000 15,000 298,849 Milan State Savings Bank, Milan, Bank of Chelsea, Chelsea, Okla... 50,000 612,265 Mich 25,000 7,000 247,698 Butler County State Bank, David Peoples Sayings Bank, Grand City, Nebr... 50,000 15,000 529,723 Haven, Mich 50,000 22,000 717,750 Farqunar Savings Bank, College District No. 11. Springs, Iowa 25,000 40,000 310,294 Security Bank of Chicago, Chi- Pecos Valley State Bank, Pecos, cago, 111 400,000 200.000 5,290,259 Tex 110,000 29,000 573,260 Evanston Trust & Savings Bank, First Guaranty State Bank, Qua- Evanston, 111 100,000 10,000 688,184 nah, Tex 100,000 50,000 627,137 Oswego State Bank, Oswego, 111.. 50,000 5,000 327,079 First Guaranty State Bank, Pal- Story County Trust & Savings mer, Tex... V. 25,000 12,500 160,708 Bank, Ames, Iowa 50,000 12,500 535,979 First State Bank, Santa Anna, Battle Creek Savings Bank, Bat- Tex 35,000 8,000 188,221 tle Creek, Iowa 40,000 45,000 815,112 Junction State Bank, Junction, State Savings Bank. Chariton, Tex 50,000 50,000 Iowa '. 50,000 40,000 720,079 First State Bank, Kirkland, Tex.. 25,000 10,000 128,150 American Commercial & Savings Lockney State Bank, Lockney, Bank, Davenport, Iowa 600,000 600,000 13,931,275 Tex.." 25,000 5,000 240,138 Citizens Savings Bank, Fostoria, First State Bank, Colorado,Tex.. 30,000 88,240 Iowa 25,000 2,500 145,375 Gilmer State Bank, Gilmer, Tex.. 50,000 12,500 219,769 Peoples State Bank, Humboldt, Merchants & Planters State Bank, Iowa 100,000 35,000 805,232 Winnsboro, Tex 30,000 30,000 309,384 Kellorton State Bank, Kellorton, Commercial Guaranty State Bank, Iowa 25,000 8,750 342,598 Nacogdoches, Tex 100,000 5,000 895,016 Mapieton Trust & Savings Bank, Texas Bank & Trust Co., Sweet- Mapleton, Iowa 75,000 7,000 675,149 water, Tex 100,000 75,000 400,315 Marshalltown State Bank* Mar- Guaranty State Bank, Tyler, Tex. 200,000 55,000 1,052,820 shalltown, Iowa 100,000 30,000 2,087,532 Peoples Guaranty State Bank, State Bank, New Hampton, Iowa. 50,000 ! 40,000 688,718 Tyler, Tex * 100,000 25,000 575,037 Citizens State Bank, Newton, First State Bank, Kerens, Tex.... 50,000 25,000 402,498 Iowa 60,000 12,000 501,649 Garwin State Bank, Garwin, District No. 12. Iowa 50,000 25,000 430,522 Farmers & Merchants Savings Security State Bank, Ashton, Bank, Tipton, Iowa 50,000 15,000 493,794 Idaho 25,000 18,000 412,499 Peoples Commercial & Savings Farmers & Merchants Bank, Bank, Bay City, Mich 400,000 400,000 7,023,531 Idaho Falls, Idaho 150,000 1,014,641 Davison State Bank, JDavison, Victor State Bank, Victor, Idaho.. 25,000 130,292 Mich 25,000 6,000 439,507 Almira State Bank, Almira,Wash 50,000 10,000 513,459 Fe t n o t n o , n M S i t c a h te Savings Bank, Fen- 25,000 10,000 453,368 A Ba n n d k er o so f n E m B ra r e o t s t . , E B m a x n n k e , t t, I I d d a a h h o o. 60,000 5,000 510,387 Hi M lls ic d h ale SavingsBank, Hillsdale, 60,000 25,000 1,049,287 Tr F a a d l e l r s s , I B d a a n h k o , Toppenish, Wash.. 1 2 0 5 0 , , 0 0 0 0 0 0 10 1 0 0, , 0 0 0 0 0 0 1, 3 5 7 8 0 8 , , 9 2 0 1 1 8 Ludington State Bank, Ludington, Mich 100,000 20,000 1,140,858 Th W e i U nn n e io c n o n B n a e n , k W o is f Winneconne, 25,000 8,000 378,183 its N m O e T m E. b — er T sh he ip B b a y n k m o a f k G in r g ee n p , a G ym re e e n n t , K o a n n s a . c y c h o a u s n d t e o ci f d c e a d p n it o a t l to st o co ck m , p a le n t d e Hasper County Savings Bank, it is therefore not a member of the Federal Reserve system. Newton, Iowa 100,000 50,000 1,220,749 District No. 8. Bank of Commerce, Little Kosk, New National Bank Charters. Ark 300,000 150,000 4,032,535 Union Trust Co.,Little Hock,Ark. 250,000 150,000 3,091,887 Litchfield Bank & Trust Co., The Comptroller of the Currency reports the Litchfield, 111 100,000 10,000 615,801 Lafayette County Trust Co., Lex- following increases and reductions in the numington, Mo I 75,000 15,000 198,142 Farmers Bank & Trust Co., ber of national banks and the capital of na- Blytheville, Ark 50,000 25,000 425,584 Mercantile-Commercial ii a n k , tional banks during the period from July 27, E vansville, Ind 200,000 100,000 2,483,706 Central Trust Co., Owens boro, ivy. 200,000 34,000 I) 403,590 1918, to August 23, 1918, inclusive: District No. 9. I Banks. Bank of Pierce, Simmons & Co., Red Wing, Minn 125,000 60,000 1,153,145 New charters issued to 14 Swift County Bank (Inc.), Ben- With capital of $400,000 son, Minn 50,000 50,000 1,456,045 Kandiyohi County Bank, Will- Increase of capital approved for 14 mar, Minn 100,000 20,000 1,460,158 Exchange Bank of South St. Paul With new capital of 2, 460,000 (Inc.), South St. Paul, Minn... 125,000 25,000 221,399 State Bank of JefCers, Jeffers, Minn 25,000 10,000 351,159 Aggregate number oE new charters and Inverness State Bank, Inverness, Mont 25,000 19a, 173 banks increasing capital 28 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
SEPTEMBER 1,1918. FEDERAL RESERVE BULLETIN. 859 Banks. FIRST 3£ PER CENT BONDS DUE 1947. With aggregate of new capital authorized 2,860,000 Number of banks liquidating (other than Number. Amount. Number. Amount. Number. Amount. those consolidating with other national banks) "! 3463 $50 1542110 §50 795139 SHOO Capital of same banks 50,000 1 4 35 7 3 6 6 8 1 5 5 5 0 0 1 1 5 5 4 4 2 2 1 1 1 1 1 4 5 5 0 0 8 8 3 2 4 3 0 2 2 1 4 3 1 1 0 0 0 0 Number of banks reducing capital 0 151697 501 1542118 50 847017 100 196154 50 1559923 50 847018 100 Total number of banks going into liquida- 196155 50 1608676 50 847794 100 196793 50 1622150 50 908330 100 tion or reducing capital (other than those 242775 50i 1644758 50 958292 100 consolidating with other national banks). i 297349 50 1644759 50 958900 100 362865 50 1678358 50 960333 100 Aggregate capital reduction 50,000 412064 50: 1693710 50 1020256 100 The foregoing statement shows the aggregate of 536055 50j 1693711 50 1020257 100 536892 50! 1857639 50 1049593 100 increased capital for the period of the banks 658494 50: 1894000 50 1050951 100 658495 50I 1895592 50 1088282 100 embraced in statement was 2,860,000 658496 50 1929145 50 1092762 100 Against this there was a reduction of capital 678794 50i 1943954 50 1107377 100 706986 50i 1979464 50 1107378 100 owing to liquidation (other than for consoli- 738138 50! 1979465 50 1159040 100 839931 50! 2041226 50 1159041 100 dation with other national banks) and reduc- 967175 50 2844811 50 1293607 100 tions of capital of 50, 000 996265 50 3125901 50 1305737 100 1007746 50 3125902 50 1381626 100 1007760 50 3125903 50 1382095 100 1037960 50 3147527 50 1382096 100 Net increase 2,810,000 1093800 50 6283779 50 1382097 100 1112468 50I 7579130 50 l ggg 500 1112469 50! 98616 100 82562 500 1240063 50i 253051 100 190740 500 1305737 50: 362107 100 190744 500 1325485 50 484241 100 195760 500 Acceptances to 100 Per Cent. 1327201 50 484242 100 2S1303 500 1461401 50 601019 100 281304 500 1478866 50i 601020 100 197389 1.000 Since the issue of the August BULLETIN the following banks have been authorized to accept drafts and bills of exchange up to 100 per cent FIRST 4 PER CENT CONVERTED BONDS DUE 1947. of their capital and surplus: 28150 $50 1620216 $50 1276973 $100 Baltimore Trust Co., Baltimore, Md. 29402 50 1620216 50 1276974 100 34583 50 1626211 50 1276975 100 First National Bank, Navasota, Tex. 46532 50 1631319 50 1276976 100 Second National Bank, Baltimore, Md. 394995 50 1720171 50 2611354 100 405126 50 1631302 50 3450 500 New Netherland Bank of New York, N. Y. 545355 50 1824842 50 3451 500 680029 50 1824843 50 3452 500 The National Union Bank of Maryland, Baltimore, Md. 717285 50 1824844 50 3453 500 Commercial Trust & Savings Bank, New Orleans, La. 724865 50 1841114 50 56950 500 730125 50 1876643 50 95553 500 American National Bank, Austin, Tex. 758083 50 1979916 50 151232 500 758185 50 1979917 50 145177 1000 Pittsburgh Trust Co., Pittsburgh, Pa. 967169 50 2879334 50 145178 1000 Houston National Exchange Bank, Houston, Tex. 977418 50 2960053 50 145179 1000 972133 50 3138837 50 145180 1000 982947 50 7566310 50 145181 1000 985917 50 i 31279 100 145182 1000 990603 50 145177 100 145183 1000 990604 50 145200 100 145184 1000 Lost and Recovered Liberty Bonds. 991591 50 246366 100 145185 1000 1040675 50 283444 100 145186 1000 11289S2 50 305465 100 145187 1000 Following is a list of lost and stolen Liberty 1142219 50 333776 100 145188 1000 1247830 50 356920 100 145189 1000 bonds furnished this month to the American 1254968 50 360141 100 145190 1000 1278507 50 420082 100 145191 1000 Bankers' Association. 1357013 50 515501 100 145192 1000 1398540 50 545414 100 145193 1000 If any of these bonds or coupons are pre- 1405343 50 743393 100 145194 1000 1408561 50 743394 100 145195 1000 sented, banks should write, telephone, or tele- 1408562 50 743395 100 145196 1000 1408563 50 801942 100 145197 1000 graph, collect, to L. W. Gammon, Manager 1408564 50 801943 100 145198 1000 1453803 50 801944 100 145199 1000 Protective Department American Bankers' 1472635 50 848594 100 145200 1000 1508624 50 1260928 100 677600 1000 Association, No. 5 Nassau Street, New York 1611511 50 1261309 100 City. Registered. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
860 FEDERAL RESERVE BULLETIN. SEPTEMBER 1,1018. SECOND 4PER CENT BONDS DUE 1942. SECOND 4 PERCENT BONDS DUE 1942—Continued. Number. Amount. Number. Amount. Number. Amount. Number. Amount. Number. Amount. Number. Amount. 1 9819 $50 1143804 850 2790694 1550 40674 S100 235S082 sioo 4301957 sioo 11532 50 1145165 50 2790695 50 57720 100 2376712 100 4301958 100 12415 50 1156666 50 2779978 50 76441 100 2478842 100 4301959 100 20001 50 1159787 50 2779979 50 88126 100 2537258 100 4301960 100 20002 50 1165638 50 2807843 50 88127 100 2569936 100 4301961 100 20003 50 1209460 50 2807844 50 88128 100 2576716 100 4301962 100 20004 50 1210303 50 2S07S45 50 88129 100 2576717 100 4301963 100 20005 50 1214316 50 2807846 50 88130 100 2591165 100 4301964 100 20006 50 1215138 50! 2822342 50 151614 100 2596875 100 4301965 100 20007 50 1215139 50 2832342 50 193384 100 2596876 100 4301966 100 24858 50 1222603 50 2832343 50 219793 100 2596877 100 4301967 100 40673 50 1236159 50 2832344 50 224643 ioo i 2596878 100 430196S 100 40674 50 124.0600 50 2854050 50 230067 100 | 2596879 100 4301969 100 89873 50 1286091 50 2879747 .50 230928 100 2596986 100 4301970 100 91163 50 1286099 50 2905399 50 259987 100 2600287 100 | 4301971 100 99126 50 1291138 50 3083098 50 261380 100 2611354 100 ; 4301972 100 99127 50 1291139 50 3083099 50 265636 100 2645571 100 4301973 100 100896 50 1291278 50 3084870 50 265637 100 2645572 100 4303693 100 100897 50 1295641 50 3103931 50 265638 100 2089358 100 4303694 100 100898 50 1297915 50 3103932 50 265639 100 2689359 100 4303695 100 133981 50 1301021 50 3138837 50 265641 100 2589360 100 4303696 100 169942 50 1305957 501 3145796 50 265642 100 2689361 100 4303697 100 173054 50 1307788 50! 3215494 50 271162 100 2689362 100 4303698 100 186649 50 1313270 50 3492045 50 282308 100 2704446 100 4303699 103 188650 50 1313271 50 4036404 50 289700 100 2711389 100 4320050 100 283444 50 1320565 50 4080968 50 311881 100 2711390 100 4330510 100 313310 50 1321764 50 4082708 50 311882 100 2711391 100 4343817 100 313937 50 1322324 50 4162229 50 390795 100 2711392 100 4473604 100 329225 50 1325133 50 4281562 50 515501 100 2711393 100 4488609 100 361416 50 1325134 50 4665202 .50 556345 100 2711394 100 4490116 100 436226 50 1325135 50 4753238 50 641905 100 2711395 100 4490117 100 469480 50 1329148 50 4766096 50 653352 100 2711396 100 4515725 100 471149 50 1408958 50 4811406 50 672692 100 2711397 100 4517479 100 471860 50 1411285 50 4825455 50 (572693 100 2711398 100 4522461 100 474350 50 1417084 50 4921581 50 760746 100 2711399 100 4522462 100 474893 50 1419678 50 4921582 50 845576 100 2711400 100 4522463 100 477236 50 1419679 50 4921583 50 845577 100 2711401 100 4522464 100 493233 50 1466420 50 4921584 50 845578 100 2711402 100 4522465 100 499208 50 1477661 50 4996556 50 845582 100 2711403 100 4522466 100 499209 50 1482630 50 4996558 50 845583 100 2711404 100 4528902 100 515780 50 1482651 50 5132672 50 8455S4 100 2711405 100 4559217 100 528218 50 1485641 50 5233156 50 895528 100 2711406 100 4620420 100 548604 50 1492706 50 5330166 50 895529 100 2711407 100 2093 500 549489 50 1560390 50 5472170 50 895530 100 2711408 100 18897 500 549756 50 1575351 50 5537493 50 990883 100 2711409 100 51920 500 551811 50 1614422 50 5548052 50 990944 100 2711410 100 93285 500 551812 50 1614423 50 5548541 50 995121 100 2711411 100 95678 500 551813 50 1614424 50 5661553 50 1042562 100 2881560 100 141925 500 551814 50 1614424 50 5881099 50 1088282 100 2924887 100 154487 500 551815 50 1538243 50 6101823 50 1185989 lpo 2924897 100 157679 500 551816 50 1715002 50 6376:544 50 1185990 100 2981767 100 157680 500 551817 50 1841212 50 6530781 50 1185991 100 2989245 100 181240 500 551818 50 1845882 50 6530782 50 1185992 100 3022568 100 206571 500 551819 50 1853965 50 6551353 50 1222941 100 3079828 100 206572 500 551820 50 1864197 53 6738022 50 1278507 100 3079829 100 206573 500 551821 50 1864198 50 6857847 50 1282342 100 3113953 100 206574 500 552382 50 1917347 50 6927949 50 1282343 100 3135063 100 324217 500 620221 50 2038391 50 6932021 50 1293024 100 3184337 100 400077 500 620223 50 2085516 50 6969305 50 1299568 100 3185063 100 409301 500 679526 50 2089150 50 6992388 50 1299569 100 3231045 100 444.024 500 679596 50 2089151 50 7008426 50 1299570 100 3278442 100 474766 500 709593 50 2183951 50 7008429 50 1391486 100 3304,312 100 528218 500 709594 50 2183952 50 7060159 50 1440493 100 33GS202 100 568602 500 721069 50 2183953 50 7092597 50 1588288 100 3368203 100 626071 500 725702 50 3183954 50 7207370 50 1588289 100 3379S01 100 669415 500 780841 50 2183955 50 7238142 50 1588290 100 3385303 100 685983 500 862655 50 2183956 50 7241672 50 1588291 100 3385304 100 2461124 500 883296 50 2254355 50 7309093 50 1588292 100 3657229 100 185155 1,000 949006 50 2316236 50 7315807 50 1750000 100 3568707 100 347069 1,000 952370 50 2497607 50 7331061 50 1777304 100 368500-1 100 412151 1,000 963595 50 2497608 50 7332911 50 1777312 100 3727269 100 412152 L,000 967179 50 2505465 50 7340450 50 1777313 100 3753300 100 427829 1LJOOO 975190 50 2505466 50 7344643 50 1803445 100 3844040 100 466915 L,000 1025190 50 2505467 50 7351218 50 1903167 100 3953337 100 484742 ]1,000 1027757 50 2505468 50 7399759 50 1903168 100 3992309 100 1304053 1,000 1027758 50 2505569 50 7399891 50 1917347 100 4000402 100 1304054 ]L,000 1027759 50 2505470 50 7475149 50 2327084 100 4025738 100 1389957 1,000 1027760 50 2505471 50 7643726 50 2327085 100 4290320 100 1389958 L,000 1027761 50 2505472 50 7681319 50 2327086 100 4290323 100 1414687 LOCK) 1039082 50 2505473 50 7699692 50 2327087 100 4301954 100 1439385 L.000 1111610 50 2505474 50j 7704062 50 2327088 100 4301955 100 34134 lojooo 1143802 50 2772318 50i 19703 100 2352974 100 4301956 100 1143803 50 2790388 50' 40673 100 i Registered. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
SEPTEMBER 1,1918. FEDERAL RESERVE BULLETIN. 861 THIRD 4} PER CENT BONDS DUE 1928. "FIRST 4 PER CENT CONVERTED BONDS DUE 1947. Number. Amount. Number. Amount. Number. Amount. Number. Amount. i| Number. Amount. Number. Amount. | 107160 S50 3386183 350 1107597 $100 99192 $500 99194 $500 99195 S500 121150 50 3502435 50 1107598 100 99193 500 i 286832 50 3648088 50 1185989 100 ;i 286833 50 4795123 50 1185990 100 367291 50 4795236 50 1185991 100 401872 50 4796135 50 1185992 100 SECOND 4 PER CENT BONDS DUE 1912. 418130 50 4798023 50 1335237 100 505326 50 4799799 50 1511210 100 542088 50 4914305 50 1511211 100 1612967 | $100 ; 1612969 S100 j! 1612970 $100 542089 50 4937424 50 1526168 100 1612968 ! 100 I. 548646 50 4937556 50 1526169 100 552005 50 5019453 50 1526170 100 632867 50 5154419 50 1526171 100 1017403 50 5154736 50 1526172 100 THIRD 41 PER CENT BONDS DUE 1928. 1222161 50 5169109 50 1549061 100 1246076 50 5200271 50 2084900 100 1370451 50 5457054 50 2101654 100 1701265 S50 1701356 $50 1616214 8100 1572721 50 5876337 50 2101655 100 1701272 50 1701358 50 1616215 100 1655258 50 5876367 50 2426655 100 1701273 50 1616148 100 1616216 100 1667855 50 6142470 50 2426656 100 1701274 50 1616149 100 1616218 100 1667856 50 6161331 50 2433296 100 1701275 50 1616150 100 1616219 100 1670124 50 6177902 .50 2641790 100 1701276 50 161615* 100 1616222 100 1715002 50 6449235 50 2963099 100 1701277 50 1616154 100 1616223 j 100 1749312 50 7040180 50 2979556 100 1701292 50 1616155 100 1616234 ! 100 1858945 50 7175471 50 2979558 100 1701296 50 1616156 100 1616235 100 2005000 50 7881511 50 2996353 100 1701297 50 1616160 100 128676 500 2016110 50 22550 100 3160610 100 1701298 50 1616161 100 128677 500 2026924 50 34510 100 3160611 100 1701303 50 1616162 100 373728 500 2083229 50 307158 100 3533602 100 1701304 50 1616163 100 37465 1,000 2108197 50 107159 100 3533603 100 1701305 50 1616164 100 37467 1,000 2108198 50 1635S0 100 3732311 100 1701306 50 1616165 100 943953 1,000 2121454 50 163581 100 3738983 100 1701307 50 1616166 100 1,000 2121462 50 241916 100 3738984 100 1701309 50 1616168 100 943956 1,000 2124027 50 294762 100 4158056 100 1701310 50 1616169 100 943957 1,000 2125180 50 294767 100 4548158 100 1701318 50 1616171 100 943976 1,000 2512374 50 349507 10=3 5157059 100 1701319 50 1616180 100 943977 1,000 2551040 50 431820 100 5157060 100 1701322 50 1616181 100 1,000 2551041 50 431821 100 107950 500 1701323 50 1616183 100 1,000 3073144 50 691308 100 134807 500 1701324 50 1616184 100 1,000 3083459 50 691309 100 142837 500 1701325 50 1816185 100 943987 1,000 3352066 50 704993 100 435841 500 1701327 50 1616186 100 1,000 3352068 50 805371 100 519911 500 1701328 50 1616190 100 943990 1,000 3352073 50 904779 100 706462 500 1701329 50 1616193 100 943991 1,000 3352074 50 904780 100 334874 1.000 1701330 50 1616196 100 943999 1,000 3352076 50 904781 100 544815 1,000 1701331 50 1616197 100 944004 1,000 3352082 50 904782 100 625512 1,000 1701332 50 1616198 100 944005 1,000 1701333 50 1616200 100 1701334 50 1616201 100 1701336 50 1616202 100 Following is a list of the Liberty bonds which, 1701337 50 1616203 100 were previously reported lost and which have 1701338 50 1616204 100 1701339 50 1616205 100 since been recovered and returned to the inter- 1701343 50 1616206 100 1701344 50 1616207 100 ested bank. These numbers appeared in previ- 1701346 50 1616208 100 1701347 50 1616209 100 ous issues of the FEDERAL RESERVE BULLETIN. 1 17 7 0 0 1 1 3 3 5 5 4 3 5 5 0 0 1 1 6 61 1 6 6 2 2 1 1 1 2 1 1 0 0 0 0 1701355 50 1616213 100 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
862 FEDEEAL BESEBVE BULLETIN. SEPTEMBER 1, 1918. INFORMAL RULINGS OF THE BOARD. Below are reproduced letters sent out from not have access to the premises except with time to time over the signatures of the officers permission of the lessee, and that he shall exercise no control of any sort over the goods or members of the Federal Reserve Board against which warehouse receipts are issued. which contain information believed to be of You state that one of your borrowers, a corgeneral interest to Federal Reserve Banks and poration, proposes to set aside part of its readily member banks of the system: marketable goods and materials not necessary for immediate purposes in a warehouse con- Warehouse Receipts as Security. trolled by a separate corporation engaged solely (To a Federal Reserve Agent.) in the warehouse business, the entire stock of which is owned by the prospective borrower, Referring to your letter of July 23, relative and that it is your desire to use warehouse reto warehouse receipts given by a warehousing ceipts issued to the borrower as security for company, you are advised that Board's coundrafts drawn against you and accepted by you sel, in a memorandum which has been approved in accordance with section 13 of the Federal by the Board, makes the following statement: Reserve Act. You ask if the conditions of the " There is no provision of the Federal Reserve Board's ruling will be regarded as having been Act requiring notes to be secured by warecomplied with if you should place a custodian house receipts in order to be eligible for rediscount. The writer evidently has in mind the or representative of the Company on question whether such warehouse receipts the premises of the warehouse "who shall have would form a sufficient security for drafts access to the goods, thereby eliminating the drawn against a member bank in a domestic borrower from exercising any control whattransaction and accepted by the bank. ever, through stock ownership, over the goods 11 The requirements of the Board appear to against which warehouse receipts are issued/' have been met in that- a separate corporation In the opinion of the Board, the mere fact has been created and the receipts are to be that a representative of the accepting bank issued by that corporation and not by the shall have "access" to the goods would not borrower. I would suggest, however, that as necessarily make the warehouse receipts eligboth corporations have practically the same ible. If, however, a representative of the officers the manager of the warehousing com- Company, the acceptor, is given conpany who executes the receipts should not be trol of the warehouse in which the goods are an employee of the borrowing company, as the stored under a proper resolution of the directors Board requires that the receipts sKould be of the warehouse corporation, the fact that the issued by a company independent of the stock of the corporation is owned by the borborrower and this requirement should be met rower should not prevent the Company in substance as well as in form." from accepting the draft under the circumstances recited. JULY 29, 1918. The agreement between the directors of the warehouse corporation and the representative (To an individual.) of the Company, however, should pro- Your letter of August 9, addressed to the vide that if, by any future action of the stockcounsel of the Board, has been duly considered holders or directors of the warehouse corporaby the Board as well as by counsel. tion, an attempt is made to exercise control You refer to the informal ruling of June 10, over the warehouse, the representative of the 1918, which requires that the lessee of ware- acceptor should have the right to remove the house premises be independent of the bor- goods and to place them in storage elsewhere rower, and that he have entire control and at the expense of the warehouse corporation. custody of the goods; that the borrower must AUGUST 13, 1918. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
S*;rTJ3MBEK 1,1918. FEDERAL RESERVE BULLETIN. 863 Limitations on loans bj member banks. trust company which is a member of the Federal Reserve system may lend in excess of (To an individual.) this amount, provided its State law permits, Receipt is acknowledged of your letter of but a Federal Reserve bank is not permitted to July 26, in which you submit the following rediscount the paper of a customer of such questions for the consideration of the Board: member bank if the customer is indebted to the (1) Is it allowable for a member bank to pur- member bank in an amount in excess of 10 per chase from one or more customers their trade cent of the capital and surplus of the member acceptances, whether or not secured by nego- bank. tiable warehouse receipts or shipping docu- JULY 30. 1918. ments, if drawee's name on aggregate amount of drafts of several drawers represents more than 10 per cent of combined capital and sur- Discount of paper secured by Government bonds. plus of member bank ? (2) May a member bank loan to a party on (To a Federal Reserve bank.) single-name paper secured by negotiable documents covering staple or readily marketable I have your letter of the 24th instant, inclosmerchandise to an aggregate amount of more ing correspondence, which I have read and than 10 per cent of the combined capital and return herewith as requested. surplus of the member bank ? The question raised in your letter was dis- In reply you are advised that— cussed at the meeting of the Board this morn- (1) The law does not require a trade accept- ing, and I am authorized to say that it is the ance to be secured by negotiable warehouse opinion of the Board that a member bank actreceipts or shipping documents when pur- ing through another member bank may obtain chased or discounted by a national bank. The the discount of its paper secured by Govern- Federal Reserve act, however, requires drafts ment bonds for a period as long as 90 days, or bills drawn against a national bank to be so although a member bank acting alone may not secured if such drafts or bills are accepted by tender its collateral note to the Federal Reserve the national bank in a domestic transaction. bank which runs for more than 15 days. Of The acceptance of a draft should not, of course, course, it may be proper, in this connection, to be confused with the discount of an acceptance. consider questions of fact—whether the trans- If trade acceptances offered your bank are action is in good faith or whether the two banks actually owned by the person offering them for exchange courtesies merely for the purpose of discount, they would not be subject to the 10 having their notes discounted for 90 days inper cent limitation imposed by section 5200. stead of 15 days, but in case a country bank Of course, if they are discounted for the drawee which has regular dealings with a large bank in and not for the bona fide holder they would be a city sends its note secured by Government subject to the 10 per cent limit referred to. bonds to that bank, which in turn wishes to re- (2) In answer to your second inquiry, a na- discount the paper with a Federal Reserve tional bank is not permitted by law to lend on bank, the Board would regard the note as single-name paper, secured or unsecured, to eligible, provided the time of maturity was anyone in an amount greater than 10 per cent not longer than 90 days. of its capital and surplus. A State bank or JULY 25, 1918. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
864 FEDERAL RESERVE BULLETIN. SEPTEMBER 1, 1918. RULINGS OF THE DIVISION OF FOREIGN EXCHANGE. Following are formal and informal rulings dealers, or where drafts drawn upon importers are premade by the Federal Reserve Board, Divi- sented to them through Class A dealers, or remittances are made by the importers through exchange which goes sion of Foreign Exchange, under Executive through Class A dealers, we have not required registration order of January 26, 1918, and subsequent certificates. to the issuance of "Instructions to dealers" Again, many exporters draw say 75 or 80 per cent against of January 26, 1918, The terms "person," shipments, which drafts go through Class A dealers, and "dealer," "correspondent," "customer," and later either draw for the balance in the same manner or receive remittance from their customer, which again must such other terms as have a special meaning, are come through a dealer. In such cases where the balance used in these rulings as prescribed in the of the value of the goods over the first drawing is not allowed Executive order above. to accumulate with the balances against other shipments, and what might be called running book accounts are not Securities. opened, registration is not required. (Reprinted from "Instructions to Dealers." Where exporters and importers carry balances small or Any person desiring to make delivery of securities large in foreign banks, or with foreign customers against in any manner which necessitates the transportation of which they draw their checks, or where remittances are such securities into or out of the United States must made periodically over intervals of three or six months, file a declaration of nonenemy interests, as required Class B certificates should be required. by Executive Order of the President, and must obtain a certificate from the Federal Reserve Board, through Exporters and importers who carry accounts in this a Federal Reserve Bank, that such declaration has been country for their foreign customers that represent what filed. might be called delayed payments against imports, but at the same time that are available for transfer, or Securities unaccompanied by such certificate will against which drafts may be drawn, should take out Class C not be permitted by customs officials to be brought into certificates. the United States, or carried out of the United States. Upon receipt of advice of shipment of securities to this The business of some exporters and importers is so country from abroad, dealers holding declarations may handled as to make it necessary for them to take out both apply for certificates for deposit with the customs officials Class B and Class C registration certificates, but there are on arrival. few, if any , whose business has been of a kind to necessitate their registering under Class A. Canadian bank declarations. APRIL 9, 1918. The Division of Foreign Exchange of the Federal Reserve Board is in receipt of declarations from the head New accounts. offices of all Canadian branch banks in Canada so drawn as New merchandise accounts for current shipment with to cover all of their branches. or for foreign connections satisfactory to the War Trade Board may be opened without permission until other- MARCH 20,1918. wise instructed. No merchandise for foreign account Form F. E. No. 113. which is to be stored or warehoused, either in the United In connection with your inquiry concerning form F. E. States or in foreign countries, other than that of the pur- No. 113, in general, it is desired more particularly to obtain chaser, for shipment after the war, or at some definite or positive information that securities have not been enemy indefinite future period, can be sold without first obtainowned since February 3, 1917. When received once in ing permission from the Division of Foreign Exchange, connection with a block of securities it is not necessary to Federal Reserve Board. take it again while the same party owns them. Class A dealers should obtain permission from the MARCH 28, 1918. division before opening new accounts with or for foreign Registration certificates from exporters and importers. correspondents, except that when bankers have new Where no accounts are maintained abroad, and no ac- business offered them it is in order for them to accept it, counts are carried in this country for foreign account, and providing form F. E. 114 is forwarded at once for signature when drafts against exports are handled through Class A and returned under notice to the Division of Foreign Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
SEPTEMBER 1,1918. FEDERAL RESERVE BULLETIN. 865 Exchange, unless they have reason to believe that the filed with the Division of Foreign Exchange, Federal institution is an enemy or ally of enemy, or unable for Reserve Board, 15 Wall Street, New York City. Dealers any other reason to sign the declaration. may file confirmations either by messenger or post as best MAY 2, 1938. suits their convenience. Each confirmation must be an exact copy of the cable Credit to foreign correspondents. in question, must be written on one sheet of paper only, Credits to foreign correspondents from persons within the and contain no other matter except such as refers to the United States.—Dealers having the accounts of foreign given cable. Such confirmations must be inclosed in an correspondents on their books are prohibited from acceptunsealed envelope, properly addressed and stamped ready ing credits to such accounts which are not accompanied for mailing, and in this envelope no other mail is to be by the name of the party making the original request that inclosed without special permission from the Division of the deposit be made, and by the name of the party to Foreign Exchange. whom the foreign institution receiving the credit is to pay If dealers desire to forward more than one copy of a cable the funds and for whose account such payment is made, confirmation by different routes or by separate steamers and the purpose of the deposit must also be stated. It is or otherwise, such extra copy or copies must be delivered important that this order be noted by all bankers, instituwith the original, and each copy must be inclosed in an tions, individuals, or others in the United States, without unsealed envelope, properly addressed and stamped ready regard to whether they are dealers or not. This informafor mailing, and each copy must be stamped "Duplicate, tion will be required in addition to the regular customers' triplicate," or otherewise, as the case may be, together statement. with the routing or specific steamer desired, and in every If, for instance, a firm in Peoria, 111., is requested by an such envelope no other mail should be inclosed. In the individual to pay a bank in New York $1,000 for account event that it becomes necessary to forward an additional of a bank in Sweden, the firm must obtain from such confirmation at a later date than the delivery of the individual the required information, which it must deliver original with its duplicate or other copies, permission to its banker in Peoria through whom it wishes to make must be first obtained from the Division of Foreign the transfer, and such banker, if he carries out the operation Exchange. through his Chicago or New York correspondent, must Incoming confirmations.—All dealers are prohibited forward the information with the instructions, which must from acting upon confirmations of cablegrams covering follow the deposit to the New York bank which is to credit the transfer of funds or concerning other financial operathe account of the Swedish bank. All such information tions which may be received by them from without the must be on a separate sheet of paper, which must be ini- United States wherein the cable referred to has never been tialed by every institution through which it goes, and that delivered to them, without first obtaining permission must be delivered to the Division of Foreign Exchange from the Division of Foreign Exchange of the Federal of the Federal Reserve Board, 15 Wall Street, New York, Reserve Board. by the banker crediting the item to the foreign institution. JUNE 11, 1918. Credits to foreign correspondents from persons without the United States.—Deposits received for the credit of dollar Customers' statements. accounts of foreign correspondents on the books of Amer- There has been some doubt on the part of "dealers" ican "dealers " from "persons " as denned in the Executive as to just when they should require Customers' stateorder, outside of the United States, must bear the same ments. This has been particularly true as between information, and dealers should notify their foreign corre- dealers trading with each other. Customers7 statements, spondents that when arranging to have deposits made in which are merely declarations of nonenemy interest, this country for their account that such information must which have to be made by "persons " in this country having follow the deposit. foreign exchange operations with dealers, must be taken by every dealer from every person who is not a dealer JUNE 11, 1918. when any foreign exchange service is being extended. If such deposits are known to represent exchange trans- In other words, the dealer having contact with the person actions between recognized foreign bankers in the regular who is not a dealer is the party who must take the Cuscourse of business, and are accompanied in each case by tomers' statement. Such statements do not follow the the name of the bank or banks by whose order as well as items, but must be filed by the dealer receiving them, for whose account the payment is to be made, the purpose subject to the call of the Federal Reserve Board at its of the deposit need not be stated. discretion. AUGUST 22, 1918. As dealers receiving items from other dealers have no Confirmation of cablegrams. means of determining whether such persons are dealers, Outgoing confirmations.—Confirmations of all cables authority has been granted by the Board to accept the covering transfer of funds or concerning other financial censorship stamp of dealers upon letters of advice or operations sent by dealers to correspondents and to all inclosure from one dealer to another as being sufficient other persons outside of the United States must be first evidence that a Customers' statement has been obtained. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
866 FEDERAL EESEEVE BULLETIN. SEPTEMBER 1,1918. Every dealer is responsible to the Federal Reserve such licenses are not being issued except in special cases, Board for the taking of Customers' statements and not to where the need for gold is clearly established. other dealers through whom he may he passing transac- For your own protection, it is suggested that customers tions, except that any dealer who has reason to believe purchasing foreign gold coin of you be required to acknowlthat any transaction may be for account or benefit of an edge, over signature, on some form that you may retain in enemy or ally of enemy may make inquiry of the dealer your office, that they are familiar with the regulations. who places the transaction through him. If satisfactory This is merely mentioned with the thought that it might answer is not received the Division of Foreign Exchange be helpful to you should a customer destroy his slip when of the Federal Reserve Board should then be notified brought before a customs officer and deny ha vino: reimmediately." ceived it. JUNE 11, 1918. JULY 29, 1918. Until otherwise instructed Customers' statements are Prisoners of war. not being required in connection with drafts drawn by The definition of "enemy" under the trading-with-theforeign correspondents on American dealers, such items enemy act has been extended to include prisoners of war being covered by Form F. E. 114, which has to be signed held in Allied countries, and remittances can not be made by the foreign correspondent. unless a license is first obtained from the War Trade Board. JULY 29, 1918. For the present the War Trade Board is not issuing any Declarations on coupons and dividends. licenses for such remittances. The censorship stamp may be used by one dealer to JULY 29, 1918. another as a means of identification in connection with Blanket customers' statements. items received from abroad. The responsibility for ob- Until otherwise instructed, dealers in foreign exchange taining declarations from foreign correspondents, and may accept blanket customers' statements covering forfrom holders of securities, and in connection with coupon eign exchange transactions from month to month, provided and dividend payments, has been placed entirely upon any dealer accepting such blanket statement realizes that the dealers receiving1 the items from, the foreign countries. it is his responsibility to see that it does not become a dead It is not the duty of payers of dividends, or coupons, nor letter and that such statements are only taken from thorof others in the United States who receive such items oughly American concerns, and, further, that blanket from dealers, to require declarations. If, however, they statements can not cover any operations for employees or have information which leads them to believe that a others than the particular "person" as defined under the transaction is for enemy account, it is their duty to with- Executive order of January 25, signing such blanket statehold payment and notify the Division of Foreign Exchange. ment. Blanket statements must be renewed each month, JUNE 11, 1918. which may be done through the filing of a new blanket Remittances to American Expeditionary Forces abroad. customers' statement or through additional dated signa- Answering your letter of the 4th instant, until other- tures, extending expiring declarations. wise instructed, declarations need not be taken from In connection with the above authorization, the followmembers of the American Expeditionary Forces abroad. ing form should be used: JUNE 11, 1918. "Whereas under Executive order of the President Trading in foreign and domestic gold coin. dated January 26,1918, all transactions in foreign exchange must conform to the requirements of that order, and cus- It has been called to our attention that persons intendtomers buying or selling such exchange must in each case ing to go abroad have been paying a premium for foreign make the "declaration of nonenemy interest therein pregold coins, which they have expected to take with them scribed; and for use in foreign countries. "Whereas the Federal Reserve Board has authorized dealers in foreign exchange to accept on their own respon- Under present regulations gold coins can not be taken sibility declarations covering foreign exchange transacout of the country by travelers without first obtaining a tions from month to month under certain conditions: license from a Federal Reserve Bank, and such licenses "Now, therefore, I/we do hereby expressly declare are being granted at present in exceptional cases only that no enemy or ally of enemy of the United States is, or shall be, directly or indirectly, interested in any transwhere the need for gold is clearly established. action that may be handled for me by you, and that any Under these conditions the sale of gold to travelers at a check or draft or other item which you may handle for premium is not justified, unless the conditions are fully me or for my account, or which shall bear my signature understood by them. Until otherwise instructed, there- or indorsement during the 30 days following the execution of this declaration, may be treated as if accompanied fore, when selling foreign gold coins, you are requested to by the declaration prescribed and required by Executive have a printed or typewritten memorandum shown to the order of the President dated January 26, and I hereby purchaser and given to him with the gold, worded as undertake and agree to assume the same responsibility follows:. and to be bound to the same extent that I would be if I executed and delivered the declaration or declarations Foreign or domestic gold coin or gold bars or bullion required under the said Executive order in each and can not be shipped out of the United States nor carried out every case." on the person or in the baggage of travelers, unless a license is obtained from a Federal Reserve Bank. At present AUGUST 10, 1918. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
SEPTEMBEB 1, 1918. FEDERAL RESERVE BULLETIN. 867 LAW DEPARTMENT. The following opinions of counsel have been This question is one which involves the appliauthorized for publication by the Board since cation of the law of negotiable instruments. the last edition of the BULLETIN: Under section 5136, Revised Statutes, which prescribes the corporate powers of national Notes and bills rediscounted. banks, such banks are authorized, among other A note or bill rediscounted in good faith by a member things, to discount and "negotiate " promissory bank which is no longer owned or held by the bank need not be included as a liability of the maker to the bank, notes. within the meaning of section 5200, Revised Statutes. Under the Negotiable Instruments Law Notes or bills rediscounted under an agreement to repur- (Sec. 30) "'an instrument is negotiated when chase, or which are merely credited to the account of the it is transferred from one person to another in bank offering them for rediscount, are subject to the limitasuch manner as to constitute the transferee the tions of section 5200. holder thereof." AUGUST 7, 1918. Under section 5200, Revised Statutes, the SIR: In an opinion approved by the Board liabilities to a national bank of an}^ one person and published on page 638 of the July, 1918, for borrowed money are limited to an amount BULLETIN, the question was considered whether which must not exceed 10 per cent of the a note rediscounted by a member bank should capital and surplus of the lending bank. thereafter be treated as a liability of the maker Under authority of these two sections it is to the bank for borrowed money. In that clear that a national bank may discount the opinion the following statement appears: note of a customer which does not exceed in 'l This question was considered by the Board amount 10 per cent of its capital and surplus and by the office of the Comptroller in connecand may subsequently negotiate or sell this tion with the limitations prescribed by section 5200, Revised Statutes, on liabilities to a note to a bona fide purchaser for value without national bank of any one person, firm, or cor- notice. poration. The question involved is whether the maker "The conclusion was reached in that case of the note continues liable to the bank after that notes which have been rediscounted by a the note has been negotiated and is owned by national bank and which are no longer owned or held by the bank, should not be included as a a bona fide holder in due course. liability of the maker to the bank for borrowed Section 51 of the Negotiable Instruments money within the meaning of section 5200." Law provides that "the holder of a negotiable Exception has been taken to this conclusion instrument may sue thereon in his own name by some of the officers of the Federal Reserve and payment to him in due course discharges Banks, and by certain national bank examiners, the debt." and there seems to be some apprehension on It is clear, therefore, that when such a note their part that this ruling of the Board may be is rediscounted by a bank its rights are transused by member banks for the purpose of evad- ferred to the holder in due course and the ing the limitations prescribed by section 5200. maker becomes liable to the holder. It neces- You have asked this office to give further sarily follows that the maker's liability to the consideration to the question involved and to bank ceases. If this were not true the maker suggest what, if any, action the Board or the might obtain a discharge of his liability on the Comptroller should take to prevent excessive note by paying the bank even after it had loans from being made under authority of this transferred its rights by indorsement of the ruling. note to a bona fide holder. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
868 FEDERAL RESERVE BULLETIN. SEPTEMBER 1,1918. To hold that the maker of a note continues of the Board, the fear that it may be successliable to a national bank for money borrowed, fully used by banks to evade the limitations of after the bank has rediscounted the note, section 5200 seems to be very much exaggerwould be equivalent to holding that a nego- ated. tiable promissory note loses its negotiability So long as the customer's paper is well sewhen discounted for the maker by a national cured or is of such intrinsic value as to find a bank. There is clearly no legal justification ready market with other banks the contingent for such a conclusion. liability incurred by the indorsing bank is not It has been suggested that the position taken of serious consequence. On the other hand, if in the opinion under consideration constitutes the paper offered for rediscount is not intrina radical departure from previous rulings of sically valuable and the offering bank is merely the Comptroller's office. seeking to evade the limitations of section 5200, It is true that for many years it was cus- it is not likely that other banks would feel tomary for national banks to continue to carry disposed to rediscount such paper. They as assets notes which had been rediscounted. would in such case be much more likely to This practice, which necessarily resulted in a require the borrowing bank to execute its duplication of the assets of national banks, has, note secured by its customer's note with a however, been discontinued and while the re- proper margin, in which case the customer's ports of condition now show the amount of bills paper would remain the property of the boror notes rediscounted these amounts are not in- rowing bank and would have to be included in cluded in the total assets of the bank. the liabilities of the makers to the borrowing It necessarily follows that unless a note bank. If the borrowing bank, in order to remains an asset of a bank after it has been evade the limitations of section 5200, should rediscounted it does not constitute a liability enter into an agreement with its correspondent of the maker to the bank but becomes a liabil- to repurchase rediscounted paper before maity of the maker to the bona fide holder. turity, or to leave the proceeds of the redis- This principle has been consistently recog- count on deposit with it, the transaction would nized by the Comptroller's office in the adminis- not have been entered into in good faith and tration of the estates of failed banks. The an examiner or officers of a Federal Reserve maker of a note held by a failed bank is ordina- Bank would be justified in treating such paper rily entitled to offset his deposit balance with as subject to the limitations of section 5200. the bank against the note but in the adminis- As stated by Daniel on Negotiable Instrutration of receiverships the Comptroller has ments (Section 779-b,l Volume 1, Sixth Ediconsistently declined to allow the maker of a tion)— note to offset his deposit balance if the note is " Under several provisions of the statute not in the hands of the receiver but is held by (Negotiable Instruments Law), it is held that some other bank under rediscount on the merely giving the transferrer credit does not ground that he may thereby obtain preference constitute the transferee a holder in due over other creditors to the extent of the offset course. Thus when a bank simply discounts a note and credits the amount thereof on the if the estate of the bank is insufficient to pay indorsees account, without paying to him any the depositors in full. This question was invalue for it, such bank is not a purchaser for volved in the case of United States Bank v. value or a holder in due course as defined by McNair, 116 N. C. 550; 21 S. E. 389. In that the statute." (Albany County Bank v. People's case the maker of the note was endeavoring to Co-operative Ice Co., 86 N. Y. S. 772, 92.) have his liability treated as a liability to the If, however, a bank negotiates a note of its bank in order to obtain the benefit of an offset, customer in good faith in order to obtain addibut the court disallowed his claim. tional funds to take care of the needs of other With all due deference to the opinion of customers, there would seem to be no justifithose who have taken exception to this ruling cation for treating the liability of its customer Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
SEPTEMBER 1,1918. FEDERAL RESERVE BULLETIN. 869 to the bona fide holder of the note as a liability and surplus of the applicant bank, such certifito the bank itself. The fact that the bank is cate shall show (a) the amount held in its own portfolio, (b) the amount rediscounted with contingently liable as indorser and may be other banks, (c) the amount and character of called upon to pay the note if the maker desecurity held, (d) whether or not the member faults should very properly be taken into con- bank is under agreement to repurchase at or sideration in determining liabilities that may before maturity notes, drafts, and bills redisbe incurred by the bank under section 5202, counted, (e) whether or not it has received the actual proceeds of notes, drafts, and bills but should not be taken into consideration in rediscounted or merely a book credit theredetermining the liabilities that may be incurred for." to the bank under section 5200. With this regulation in force the Federal The Board has heretofore ruled that a Reserve Bank would be able to determine the national bank may lend to one customer an amount of secured and unsecured paper disamount equal to 10 per cent of its capital and counted by the applicant bank for any one surplus and may thereafter accept drafts of the borrower and rediscounted with other banks. same customer under authority of the Federal If properly secured, the contingent liability of Reserve Act. In this case the bank assumes a the member bank on the paper rediscounted in direct and not a contingent liability on the good faith would constitute merely a nominal drafts accepted and is the primary obligor. liability. On the other hand, if the intrinsic This fact, however, does not justify the Board value of the paper rediscounted appeared to in requiring banks to treat this liability assumed be such as to make it more than probable that by the bank as a liability of its customer to the the indorsing member bank would be called bank for borrowed money within the meaning upon to pay it, the Federal Reserve Bank of section 5200. could in its discretion determine whether such If the Board feels that it is necessary to take paper though technically eligible should be any affirmative action to prevent its ruling accepted for rediscount hj the Federal Refrom being used by member banks as a means serve Bank. of evading the limitations of section 5200, it is The Comptroller of the Currency might in suggested that it might amend section III of like manner require national banks to show in Regulation A, series of 1917, to read substantheir reports of condition information called tially as follows: for in the regulation of the Board as amended "ill. APPLICATIONS FOU REDISCOUNT. in accordance with the foregoing suggestion. The national bank examiner might likewise "All applications for the rediscount of notes, require the officers of the national bank to drafts, or bills of exchange, must contain a certificate of the member bank in form to be certify on oath whether the bank is under prescribed by the Federal Reserve Bank, that agreement to repurchase rediscounted paper to the best of the knowledge and belief of the and whether it has received the proceeds of officers of the applicant bank, such notes, drafts, such paper or merely a book credit and, for or bills of exchange have been issued for one or reasons hereinbefore stated, might treat all more of the purposes mentioned in 2 (a); such certificate shall also show whether the notes, paper rediscounted under an agreement to drafts, or bills discounted for any one borrower repurchase or for which merely book credits whose paper is offered for rediscount, exceeds have been received, as subject to the limitations 10 percent of the capital and surplus of the of section 5200. applicant bank, including notes, drafts, or Respectfully, bills held in its own portfolio or under rediscount with other banks. M. C. ELLIOTT, Counsel. "If the aggregate of such notes, drafts, or To Hon. W. P. G. HARDING, bills does exceed 10 per cent of the capital Governor Federal Reserve Board. 7 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
870 FEDERAL RESERVE BULLETIN. SEPTEMBER 1,1918. Trade acceptance providing for extension of time. that provisions in a note waiving all defenses on the ground of extensions of time do not A note or draft containing a provision for an extension affect negotiability, although even in such a of time should not be approved for general use by the case the contrary is held in Idaho, in Indiana, Federal Reserve Board. and in Kansas. Other decisions hold that the JULY 25, 1918. note is negotiable where the extension of time SIR: The accompanying form of trade provided for is ' after' maturity; and some of acceptance was submitted to this office for an the decisions draw a distinction between proopinion as to its negotiability. This form con- visions which authorize an extension of the time of payment ' after' maturity and those tains the following language: which authorize an extension of time 'before' "Demand, notice of default, and protest is maturity, it being held that authority to exwaived by all parties, guarantors, and indors- tend the time, where it can be exercised only ers, who also agree to extension of time by after maturity, does not affect negotiability, holder without notice." but, if the authority is to extend 'before' or 'before or after' maturity, the instrument is The question arises whether the provision not negotiable." for an extension of time renders the time of The doctrine of the Federal courts referred payment uncertain and the note nonnegotiable. to in the above quotation from Corpus Juris On this question Crawford on Negotiable Instruwas stated in the decision by the circuit court ments (p. 21) says: for the district of Indiana in the case of Coffin "As to whether the negotiable character of v. Spencer (39 Fed., 262). In that case it was the paper is destroyed by a stipulation to the held that a promissory note is not negotiable effect that the indorsees consent that the time of payment ma}?- be extended, the courts are if it contains the stipulation that "the payee not agreed. On the one hand, it is held that or holder of this note may renew or extend the such a stipulation makes the time of payment time of payment of the same from time to time uncertain. (Koseville State Bank v. Heslet, 84 as often as required without notice and with- Kans., 314; Union Stock Yards Nat. Bank v. out prejudice to the rights of such payee or Bolan, 14 Idaho, 87.) On the other hand, it is held that as such a stipulation neither con- holder to enforce payment against the makers, fers upon the maker the right to demand an sureties, and indorsers, and each of them, parextension, nor imposes upon the payee or in- ties hereto, at any time when the same may be dorsee any duty to grant one, it can not have due and payable. In discussing this question, such effect. (Longmont Nat. Bank v. Lonthe court says: konen, 53 Colo., 489; Farmer v. Bank of Grea-ttinger, 130 Iowa, 469; De Groat v. Focht, 37 "Every successive taker of the paper is, of Okfa., 267; First Nat. Bank of Pomeroy v. But- course, bound to take notice of this stipulation, tery, 17 N. D. 326; Stitzel v. 'Miller, 157 111. and, instead of looking only to the face of the App. 390.)" instrument for the time of its maturity, as in the case of commercial paper he must, is put Corpus Juris, vol. 8, page 140, savsupon inquiry whether or not any agreement "A note may provide for a 'definite' exten- for a renewal or extension of time has been sion or renewal after maturity without making made by his proposed assignor or by any preit nonnegotiable. However, where the agree- vious holder. 'A bill of exchange always imment for extension is not for a fixed time, the plies a personal general credit, not limited or decisions are more conflicting. Thus it is held applicable to particular circumstances and in Iowa that an agreement in a note that the events, which can not be known to the holder holder 'may extend the time of payment of the bill in the general course of negotiation.' thereof from time to time indefinitely as he or Story, Bills, sec. 46. And in Hartley v. Wilthey may see fit' renders it nonnegotiable; and kinson (4 Maule, sec. 25), Lord Ellenborough this rule prevails in Indiana, in Michigan, and says: 'How can it be said that this note is in the Federal courts. In Wisconsin it is held a negotiable instrument for the payment of that an agreement that the note is 'to be money absolutely, when it is apparent that the extended if desired by; makers' is too indefinite party taking it must inquire into an extrinsic to have any legal significance. These deci- fact in order to ascertain if it be payable.' See sions do not necessarily conflict with rulings also Insurance Co. v. Bill, 31 Conn., 534." Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
SEPTEMBER 1,1918. EEDEEAL RESERVE BULLETIN. 871 The contrary conclusion was reached by the ''A trade acceptance which consists of an Supreme Court of Texas in the case of National order to pay a certain amount, which is the amount of the debt minus a discount for prompt Bank of Commerce v. Kenney (83 S. W., 368), payment at maturity, or, if not paid at matuin which the court said that a note containing a rity, to pay a greater amount, which is the provision that the makers and indorsers " sev- amount of the debt without any discount, is erally waive protest, demand and notice of an order to pay a sum certain and is negotiprotest, and nonpayment in case this note is able." not paid at maturity, and agree to all exten- The principle involved in the two cases is sions and partial payments before or after somewhat analogous, the only difference being maturity without prejudice to holder" does that in one case the discount is allowed if paynot thereby render it nonnegotiable on the ment is made at maturity, while in the other ground that the time of payment is uncertain. the discount is allowed if maturity is antici- Chief Justice Games stated as his reasons for pated. In both cases the test of negotiability, this conclusion that there was nothing in the according to the text writers on the Negotiable stipulation which gave anyone the right to Instruments Law, is whether or not the sum demand the extension of the time of payment, payable can be ascertained from the face of and the holder could demand payment at ma- the instrument, and both forms, in the opinion turity, and that if the holder has the absolute of this office, meet this condition. right to demand payment at a certain day the It has been held in Minnesota, Nebraska, note is negotiable. Texas, and Canada that a promise to pay a It thus appears that the decisions of the certain sum with a provision that a fixed discourts are not uniform on this question, and, count is allowed if paid before maturity, or under the circumstances, the Board should not before a certain date, is negotiable, although approve for general use a form containing the the contrary has been held in Michigan, Oklaprovision above quoted. homa, South Dakota, and Tennessee. Respectfully, The reasoning of the courts in the cases sus- M. C. ELLIOTT, Counsel. taining the negotiability of such instruments To Hon. W. P. G. HARDING, seems to be more consistent with the general Governor Federal Reserve Board. } principles incorporated in the Negotiable Instruments Law, and I fully agree that such an instrument should be held by the courts to Trade acceptance providing for discount if paid at cerbe negotiable. In view, however, of the lack tain time before maturity. of uniformity of the decisions of the courts on A trade acceptance providing for a fixed discount, if this point the Board should not approve for paid at a certain time before maturity, should not be general use an acceptance containing this approved for general use by the Federal Reserve Board. condition, since its ruling would, of course, AUGUST 1, 1918. have no binding effect on the State courts. SIR: In the accompanying letter the Board is Respectfully, asked for a ruling on the negotiability of a M. C. ELLIOTT, Counsel. trade acceptance containing the following To Hon. W. P. G. HARDING, provision: "If this acceptance is paid on or Governor, Federal Reserve Board. before a discount of 5 per cent will be allowed.77 In an opinion of this office, approved by the Drafts secured by cattle notes. Board and published on page 200 of the March, Member banks are not authorized to accept drafts of a 1918, FEDERAL RESERVE BULLETIN, the con- cattle-loan company secured by notes of the owner of the clusion was reached that— cattle, although such notes may be secured by a chattel Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
872 FEDEEAL RESERVE BULLETIN. SEPTEMBER 1, 1918. mortgage executed by the owner of the cattle' to the lations of the Board, be issued by a person cattle-loan company and the notes and chattel mortgage independent of the borrower. A chattel mortaccompany the draft at the time of acceptance. gage does not ineet this requirement. Apply- JULY 23, 1918. ing the same principles to the present case it is SIR: In the accompanying letter the follow- obvious that a note of the borrower secured by ing question is submitted to the Board for a chattel mortgage could not be considered as a ruling: a document similar to a warehouse receipt. "Is it lawful for a member bank to accept The readily marketable staple securing indithe draft of a cattle-loan company secured by rectly the acceptance in question remains in notes of the owner of cattle who has pledged the possession of the borrower and, in the the cattle under a chattel mortgage to the opinion of this office, a member bank is not cattle-loan company as security for the notes, providing the notes and chattel mortgage authorized to accept drafts under the circumaccompany the draft at the time of its stances recited. acceptance?" Respectfully, Section 13 of the Federal Reserve Act pro- M. C. ELLIOTT, Counsel. vides in part that— To Hon. W. P. G. HARDING, "Any member bank may accept drafts or Governor Federal Reserve Board. bills of exchange which grow out of transactions involving the domestic shipment of goods provided shipping documents conveying Liability of Railroad Administration for damages on or securing title are attached at the time of bills of lading signed by its agents. acceptance; or which are secured at the time of acceptance by a warehouse receipt or other In answer to an inquiry submitted by Gov. such document conveying or securing title Harding, the general counsel for the United covering readily marketable staples." States Railroad Administration, through the The Board has heretofore ruled that a Director of Finance and Purchases, has advised chattel mortgage is not a document similar to the Federal Reserve Board that "the Railroad a warehouse receipt and that member banks Administration is liable for damages on bills of may not accept drafts secured by a chattel lading signed by its duly authorized agents mortgage. A warehouse receipt acceptable as precisely to the same extent as the railroads security for such drafts must, under the regu- were liable prior to Federal control.77 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
SUMMARY OF BUSINESS CONDITIONS, AUGUST 23, 1918. General Railroad, post office, District. business. Crop condition. indusfte of the district. Foreign trade. Money rates. and other receipts. Labor conditions. No. 1—Boston Good Satisfactory Busy ! Restricted Active | ly, at 6 per Post office large in- Fully employed. CD crease; others mixed I-* 00 No. 2—New York.. Moderately ac- Favorable.. High rate of production Scarcity of materials i Exports from the ! 6 >r cent rate i^ost office, July re- Slightly improved tive; prices | of war essentials being even for Govern- i ppoorrtt ooff New j nly main- turns increased 29.61 by regulation. firmly main-1 maintained. ment program, York in<Lcreased ! tained; limited per cent over 1917; tained and I which comprises vir- 12 per cent over volume borrow- railroad, gross earncollections j tually total con- July, 1917. ing. ings show increase good. I struction. over last year. No. 3—Philadel- Good I Good | Very busy. Scarcely any, except Confined to war Firm.. Increasing Acute scarcity. phia. for war industries. supplies. No. 4—Cleveland... do I Favorable.. Very active | Quiet Increase.. Increase.. Shortage. g No. 5—Richmond.. Continues very Generally satis- Only limited by sup- 90 to 95 per cent on Restricted by Active demand; 6 Railroad, irregular; Inadequate but active. factory. plies and labor". Government work. shipping. pel' cent. post office, volume somewhat less large, reflects in- complaint. No. 6—Atlanta Good Excellent Active j Fair Light Stationary Stationary , Fair. i I No. 7—Chicago Satisfactory. . Good | Essential industries at | No change from slug- Firm Post office receipts in- Fair distribution; t capacity limited by gish condition. crease. some unrest. supply of labor and materials. w t No. S—St. Louis..,! Good i Fair I Active Inactive do Increase in postal re- Good demand. ceipts. No. 9—Minneapolis | do Harvest returns .do.. Slow. Steady No change. Labor very scarce. good. No. 10—Kansas City do Fair do Limited- Firm.. Improved. No. 11—Dallas Fairly good...\ Unsatisfactory.. Mainly agricultural and Little building of anv Not heavy, except Firm, with some !Post odlce receipts in- Heavy demand for this interest not favor- kind in district. " cotton just be- tendency to creased 84 per cent. all classes of able. ginning to move. \ higher rates. labor. \ro. 12—San Fran- | Active. Good Very active Decreasing except ex- Increasing.. Firm, prevailing Settled. tension of shipyards rate, 6 per cent eisco. ! and providing nouses in coast cities; for workers. 7 per cent in inland centers. -00a OS Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
874 FEDERAL RESERVE BULLETIN. SEPTEMBER 1, 1918. GENERAL BUSINESS CONDITIONS. There is given on the preceding page a sum- given accommodation. The almost invariable mary of business conditions in the United order of preference is, first, Government needs; States by Federal Reserve districts. These second, essential industries; third, less essenreports are furnished by the Federal Reserve tial. Not only are the requirements of the agents, who are the chairmen of the boards of Government heavier, but manufacturers are directors for the Federal Reserve Banks of the requiring larger loans than usual to conduct several districts. Below are the detailed re- their business because of the increased cost of ports as of approximately August 23: labor, raw material, and fuel. In spite of this, however, banks have been able to reduce their DISTRICT NO. 1—BOSTON. borrowing from the Federal Reserve Bank of Conditions in New England are satisfactory, Boston during the month, its total loans on business men are moving carefully, trade is in- August 17 being $85,873,000, as compared creasing, and manufacturers of essential prodwith $110,672,000 on July 17, a decreaso of ucts are extremely busy. The advanced cost $24,799,000. of labor and materials of every kind has re- The outlook for crops as a whole is quite stricted all unnecessaiy expansion and buildgood, the recent wet weather having a very ing operations, except for Government work, favorable influence. Wheat is being grown in have been materially reduced. In Boston only larger quantities in New England this year, 311 permits for new buildings have been issued owing to the prevailing prices, and it is estiduring the first seven months of 1918, a demated that the yield will be about 900,000 crease of 576 from the corresponding period in bushels. Fruit crops are generally light, many 1917, which in turn showed a large decrease trees having been wholly or partially killed by from 1916. the severe weather of last winter. While the While there is an extraordinary demand for season for tobacco has been unfavorable, a lumber by the United States Government, retail lumber trade is very quiet, with little pros-' good crop may yet result. Hay remains conpect of improvement. siderably below normal, with exceptionally Labor of all kinds is hard to obtain, and mills high prices prevailing. Grain crops are in exhave been obliged to reduce their output, al- cellent condition. though wherever possible they are running With woolen and worsted mills on the aversteadily through the hot weather. Civilian age devoting over 50 per cent of their mabusiness is being converted to Government chinery to Government orders, some are runneeds in many unusual ways. For example, ning 75 and 80 per cent for the Government, as carpet and rug mills are now manufacturing others are not equipped for that kind of busiblankets and cotton duck, devoting less than 20 ness. Consequently, some mills are producing per cent of their capacity to their regular lines. practically nothing for civilian needs. Mills The money market remains firm and steady, are endeavoring to complete old contracts as with the demand larger than the supply. A fixed rapidly as possible, but in view of the large rate of 6 per cent has become practically uni- Government requirements are making slow versal for demand money, time loans, and com- progress. Practically all the wool held by the mercial paper, regardless of name or maturities. mills is covered by long-standing contracts, and Banks, with few exceptions, are caring for none the Government will not at present allot wool but their own customers, and it is no longer a for civilian purposes. It is estimated that question of rates, but rather of who shall be there is enough manufactured woolen goods Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
SEPTEMBER 1,1918. FEDERAL RESERVE BULLETIN. 875 and clothing in the country to furnish the pub- inventories and, consequently, more capital is lic for a good while to come if it will conserve required to carry on business. what it already owns and use care in future Building and engineering operations in New purchases. England from January 1 to August 14, 1918, The raw wools held in stock by dealers in amounted to $97,893,000, as compared with April have now nearly all been valued and paid $127,542,000 for the corresponding period of for by the Government. 1917. The recent action in appointing a syndicate The receipts of the Boston post office for July, to purchase wools in South America for the 1918, show an increase of $171,841.22, or about allies, and to deal direct with South Africa and 27 per cent more than July, 1917. For the first Australasia in the purchase of wool, practically 15 days of August, 1918, receipts were about eliminates the dealer. 33J per cent, or $93,384.51, more than for the Cotton manufacturers, as a rule, are sold corresponding period of last year. ahead for the next four or five months, and are Boston Clearing House figures compare as more favorably disposed toward additional follows: Government orders than civilian contracts, as the former insure them priority in fuel, raw Aug. 17,1918. Aug. 10,1918. Aug. 18,1917. materials, and possibly labor. Mills are now being handicapped by the lack of experienced Loans and discounts.. $495,295,000 §498,687,000 8463,935,000 Demand deposits 441,073,000 428,053,000 367,497,000 help, this being particularly marked in the Time deposits 16,556,000 15,604,000 35,709,000 Due to banks.. 117,911.000 114.136,000 127,456,000 card and weaving rooms. Recent financial Exchanges J 300,150) 280,795,461 242,135,074 statements of condition of the mills make excellent showings. In New Bedford, for exam- DISTRICT NO. 2—NEW YORK. ple, due to the accumulation of earnings for The very large proportion of the industries several years past, not one has a dollar of net of the district engaged in war work continues debt on its plant. In order to facilitate the to be augmented by the conversion of plants financing of the new cotton crop, the cotton specifically to meet war needs. Production buying committee of the National Association continues at a high level, though the steadily of Cotton Manufacturers is strongly advocating crystallizing demands of the Government the construction of Federal warehouses in large exceed the flow of products. To an increasing industrial centers in New England, as well as extent the distribution of basic raw materials, at the principal shipping points in the South. despite large output, is restricted to those The boot and shoe industry is quiet. Firm industries contributing directly and in major prices are maintained and production is large. degree to war ends, and for even such collateral Retail business is good, especially in women's activity as the Government's housing prolines, sales of men's shoes having been reduced gram, calling for structural steel, brick, somewhat by reduction in buying due to the linseed oil for paint, etc., supplies are so inadetransfer of men to the army. Manufacturers quate than an index of building material prices, report that collections are good. prepared by the American Contractor, shows Retail dry goods business, while spotty, is recent sharp advances as compared with the on the whole ahead of last year, both in the earlier gradual rise. amount and value of merchandise sold. Con- With the increase of Government demand for servation in the matter of deliveries and return steel, estimated for shell steel at probably 15 of merchandise has resulted in much economy. per cent above present shipment rate, and for Some time ago it was apparent that sales for plate steel at about 12 per cent more than cash were increasing much faster than on charge recent record outputs, less essential industries accounts, and this tendency is still evident. are of necessity adjusting themselves to the Increased cost of merchandise results in larger scarcity of these and ^ ^^ fundamental Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
876 FEDERAL RESERVE BULLETIN. SEPTEMBER 1,1918. materials. Only approximately 5 per cent of The shortage of unskilled labor is reported to the total supply of copper is said to be available be slightly less acute and the turnover diminfor other than war purposes, at the fixed price ished, largely as a result of Federal supervision of 26 cents. Tin, pending arrangements with of employment, but the demand for labor above the British Government in respect to imports, the completely unskilled grade, and especially is at almost prohibitive prices, and canning for men with some training along mechanical industries and oil refiners complain of shortage lines, is very keen. of tin plate. Important chemicals, such as The movement of farm produce to New York glycerin and nitrates, are diverted from nor- City has been fairly heavy, vegetables and fruit mal use in the manufacture of such articles as arriving in moderate quantities and butter and soap and fertilizers, to use in the manufacture egg receipts exceeding those in the correspondof munitions, ing period last year. The Bureau of Crop Because of limited imports, the allocation of Estimates reports the peach crop in New York rubber for August and September is on a basis State as approximately 24 per cent of that of of three-eighths of the consumption during the 1917, but the commercial apple crop forecast corresponding period last year. The small for the western part of the State is 5,320,000 quantities of incoming hides and skins disposed barrels, as compared with 1,118,000 last year. of at prices fixed by the Government, 7 to 8 per The composite condition of all crops is given as cent lower than those prevailing, similarly 97.8 per cent of the ten-year average. The permit the filling of only a portion of the needs only item in the provisions list, about which of manufacturers of leather goods to satisfy there is at present serious concern as to supply, their active trade demand. Federal regulation, is sugar. New York refiners' receipts for the looking to a 15 to 20 per cent reduction in the four-week period ending August 10 declined 36 size of newspapers, follows decreased produc- per cent and meltings declined 34 per cent from tion of newsprint paper. the preceding four-week period. Stocks on The textile industry is in an unsettled state, hand August 10 were only 24,101 tons, comwith somewhat opposite conditions obtaining pared with 127,000 on the corresponding date in as to supply of raw materials in the wool and 1917, and exports from New York for the year cotton trades. A tendency appears to exist to date amount only to 20,044 tons compared among manufacturers and distributors to await with 288,388 tons from January 1 to correfull issue of Government price regulations before sponding date in 1917. determining trade policy. With importation In the four-week period ending August 17, of wool exclusively on Government account, the number of shares traded in on the stock it seems not improbable that the supply will exchange was 6,094,357, as compared with be inadequate to permit the manufacture of 8,867,859 in/the preceding four-week period pure wool fabrics for civilian trade, but as suf- and 9,003,324 in the corresponding period of ficient stocks of cloth for the near future are 1917, or approximately the same ratio (twoin the hands of merchants they hesitate to con- thirds) as the total shares sold to date in 1918, tract for mixed goods. Trading in cotton compared with the total to like date in 1917. goods is also light, owing to uncertainty as to The par value of bond transactions for the fourhow Government-established prices for certain week period and the year to date, amounting to classes of goods affect the prices of others, and $125,453,000 and $951,022,000, respectively, to expectations on the part of buyers that prices are almost double the value of transactions in will be lower and to preference by the mills for the corresponding periods of 1917, but dealings large scale Government orders for goods of in United States and foreign Government homogeneous character. bonds represent 88 per cent of the total in the Collections in this district are reported uni- last four weeks, as compared with 63 per cent formly good. in 1917. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
SEPTEMBER 1,19~8. FEDEBAL RESERVE BULLETIN. 877 Corporate security issues in July, as com- year ago, and there is reported hesitation on the piled by Dow, Jones & Co., were approximately part of buyers about making purchases. the same as in July, 1917, and about the same It is stated that the regulation of the prices proportion, 19 per cent of the total, were for of cotton yarns and cotton fabrics, with the the purpose of retiring maturing obligations. notice that a new schedule of prices may be Charters issued in the Eastern States for new made on October 1, has retarded dealings in corporations individually for $100,000 or over most varieties of cotton goods, though it is are given by the Journal of Commerce as reported that orders are being taken subject to $185,726,500, compared with $492,965,800 in the prices that may be fixed October 1. 1917. The wool business practically has been taken The market for commercial paper has been over by the Government. No wool is being sold fairly active, with borrowing on a conservative for civilian purposes, and all importation of scale and rates ruling at 6 per cent for all foreign wools has been suspended, except for maturities. The prevailing rate for bankers' Government use. It is reported that nearly all acceptances has been 4|- per cent. Call loans wool and woolen manufacturers of the country on stock exchange collateral have been in good are working on Government orders, and probdemand, and rates have held at 6 per cent with ably it will be six months before such orders are practically no offerings below that rate. completed and there is any possibility of releasing any machinery or wool for civilian use. DISTRICT NO. 3—PHILADELPHIA. Dealers in woolen goods are practically out of War influences control business in this disbusiness, an insignificant quantity of cloth is trict, and all activities are entirely subject to being made, but of so poor a quality that in them. ordinary times it would be hardly salable. We With the control of transportation, shipments are advised that manufacturers of clothing and and deliveries of materials, and the regulation other users of cloth have laid in large stocks, of prices of many lines of goods, directly or inand the chances are that all the civilian clothing directly in the hands of Government authorineeded can be supplied for the next 12 months. ties, the ordinary operations of business in The only suffering will be due to the prices most lines have been much disturbed. consumers will have to pay. From the operating and producing standpoint The effect of Government activity extends most lines of business are very active. As has similarly to the manufacture of iron and steel been the case for some time, the demand for products, another large industry of this disgoods necessary to the conduct of the war is trict. The largest possible tonnage is being sufficient to employ more than all the available turned out, and it is reported that producers machinery and labor, and due to the filling of have now virtually given up all thought of supthe Government requirements in some lines it plying any steel for other than war or Governwill be months before any goods of any amount ment purposes for an indefinite time. can be produced for civilian use. The Govern- Government financing and the requirements ment being the principal purchaser of goods, of business are maintaining an active demand there is no question as to payment of bills; for money, and rates throughout the district large wages make for large purchasing power on continue firm at 6 per cent for nearly all classes the part of the people, so that the distribution of loans. The large subscriptions of banks to of goods through the jobbers and retailers has United States certificates of indebtedness are been satisfactory, and collections are very good. causing them to restrict credits wherever pos- Fall trade is about to open. Prices are consible, and the tendency is to curtail accommosiderably higher and there is some uncertainty dations to lines of business not necessary to as to just how the advanced prices will be received. Jobbers are beginning to offer goods public welfare, or essential to the conduct of for next spring, their prices are in advance of a the war. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
878 FEDERAL RESERVE BULLETIN. SEPTEMBER 1,1918. DISTRICT NO. 4—CLEVELAND. vented the maximum of efficiency in coke Business in the Fourth Federal Reserve Dis- making. trict continues on the same basis as heretofore, Agriculture.—The wheat crop has been harexcept as held in check by labor and transpor- vested and practically all threshed, and while tation. These two factors appear to have the yield has been disappointing in some innearly reached the limit of expansion and, stances, yet, with the increased acreage, the until recruits have been added to the one and crop is believed to be, considerably in excess abnormal demands taken from the other, but of last year's. The yield from spring wheat, little increase in production can be expected. however, has exceeded expectations. The Manujacturing.—War needs continue to harvesting of the oats is practically completed dominate the iron and steel industries and all and threshing is well under way. The yield plants are operating as near to capacity as is very large and reports of 60 to 70 bushels conditions permit. Due to the heat and a per acre are not uncommon. shortage of pig iron there has been some de- Throughout central Ohio the corn crop is crease in production in the large centers, reported in fine condition, and while in some while in others the output is at the maximum. other districts it has suffered from lack of Regulations by the War Industries Board are moisture, yet it has greatly benefited by said to have facilitated the work of distribut- recent rains, and, generally, the crop is in a ing steel and iron products. The production fairly healthy condition. of the plate mills is short of needs, even though In the Kentucky district heavy rains have more is being produced than ever before. As practically assured a good corn and tobacco war needs permit, an effort is being made to crop. The tobacco is being cut and every insupply railroad equipment before winter begins. dication points to a large crop, although in the Clay products.—Pottery manufacturers have burley district the crop is said to be somewhat recently granted a substantial wage increase to spotty. It is reported that the plant is heavier all departments, and this industry now has this year than for a number of years past, less trouble in securing and holding labor. which will add to the tonnage. There has been some slackening in the demand In the northern Ohio district the outlook for for wares in the past few weeks, but a fair a good yield of pe^rs and apples is encouraging, supply of orders is still unfilled. although the peach crop is very light. In Manufacturers of tile, face and common many localities the yield of early potatoes brick report little change from previous has been disappointing, but recent rains are months, as do glass and window glass manu- said to have very much improved the late facturers. potatoes, sugar beets, and late planted war gardens. In all lines of agriculture, prices are Fuel.—In the Pittsburgh district produchigh and farmers are prosperous. tion is not believed to be in keeping with last While for a time some uneasiness was felt year due to car and labor shortages, and on account of the extreme heat and extended considerable trouble is experienced in satisdrought, yet rains have been general over the fying customers, the demand exceeding that district, and in most cases pastures have been of any time during the year. saved and growing crops have been greatly There has been a revival of coal operations benefited. The supply of hogs, cattle, and on the rivers, and a consequent improvement sheep is normal. The price received for the in business in river towns. wool clip has been very gratifying to sheep In the Kentucky fields and some others raisers, and whatever uneasiness was felt as to conditions appear to be more favorable, and an inability to take care of the crops in the the output is in better volume. In general, district has been allayed. it is believed that production is being fairly Labor.—Although there is a great scarcity well maintained. Excessive heat has preof labor, the employment of women is still Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
SEPTKMBKB 1,19.18. FEDERAL RESERVE BULLETIN. 879 increasing, the demand being in excess of the Mercantile lines.—Wholesalers and jobbers supply. When the schools convene in Sep- in dry goods report business in large volume, tember they will undoubtedly take from the equalling and exceeding other records. Sales labor field a great many children of school age for immediate delivery show some falling off, and teachers who have been employed during due to price uncertainty and large stocks the summer. held by retailers. Jobbers complain that the In the Pittsburgh district an increase of 10 shortening of trade terms necessitates addiper cent in the wages of common labor became tional working capital. However, business is effective August 1, affecting an estimated good and prospects bright. Retailers are 250,000 workers. busy disposing of summer merchandise. There is reported a very considerable short- Sales compare favorably with previous years, age of labor in the Pittsburgh coal fields, but but some dissatisfaction is evidenced in that this has been offset in part by the patriotic purchases are largely made by an element which response of workers to the Government appeal, is the best paid at the present time but which and present employees are working faithfully docs not furnish a permanent clientele. A and losing as little time as possible. The disposition is shown to anticipate fall wants in labor situation is not altogether satisfactory, excess of other years. and some uneasiness is felt as the draft and Money and investments.—The additional capwar service continue to make inroads on the ital required to carry on business, due to supply. higher prices, tends to increase the require- Collections.—Failures continue to decrease, ments of commercial borrowers. The uniform and collections, except in very few instances, rate on this class of paper is 6 per cent, and are good. This is especially true in the out- paper in less liquid form commands a higher lying districts and in sales by the smaller rate. The increasing demands of Government manufacturers. In some cases larger industries financing also help to tighten the money report that public utility companies are market. offering paper while awaiting aid from other Bankers, that they may be able to take their sources. The marketing of agricultural staples, full quota of certificates of indebtedness, which has already begun, should materially discriminate very closely between classes of strengthen a satisfactory situation. paper offered, and preference is shown to a Transportation.—Increased activity in river marked extent for liquid paper. transportation in coal and manufacturing Preparation is being made for the fourth districts has relieved to some extent the short- Liberty loan, which it is believed will bo a age of cars on contiguous lines of railway. task of some magnitude, but there is full con- It is believed that merchants and manu- fidence that it will be subscribed. It is the facturers are using every effort to obtain general opinion that the people of the country supplies before the movement of the harvest are ready for any sacrifice to carry the war to a and troops and increased war material absorbs successful ending and need only to be informed the carrying power of the railroads. This of the specific sacrifices to be made and the possibly accounts for some reported delays amounts required of the individual. and congestion. In the Cincinnati district Building.—In a few quarters there is uninadequate terminal facilities are said to cause usual building activity in comparison with unfortunate delays in transporting essentials. previous months. This condition obtains in Conditions are not as satisfactory as could be localities where the need for dwellings for desired, but it is hoped that the situation is workmen is imperative. Considerable diffioccasioned by anticipation shipments, and will culty is experienced in obtaining plumbing and tend to relieve the situation later. heating supplies. Generally the line is con- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
880 FEDERAL KESEBVE BULLETIN. SEPTEMBER 1,1918. fined to the erection of dwellings for workmen certainty of getting supplies and labor and the and plants for the making of war supplies. high cost of both make it impossible to accomplish work with satisfaction either to them- DISTRICT NO. 5—RICHMOND. selves or to the Government. There is little of change or special interest The fuel situation continues unsatisfactory during the past month, notwithstanding the and there is much complaint about the distrigreat activities in the district and the unprecbution of coal, due to the scarcity of labor and edented volume of business which is in evicars, and to the fact that the output is only 60 dence in every direction. Adjustments are per cent to 80 per cent of normal. Relief from being promptly and cheerfully made to meet this situation before the winter sets in seems war conditions and to cooperate with the Govproblematical. ernment in all essentials to meet the respon- Manufacturers, particularly cotton mills, sibilities which face us. have been somewhat disturbed by the discus- Although this is generally regarded as the sion of price fixing, but although the Governdull season of the year, general business is ment is said in many instances to be paying above normal and collections are good. Credits 25 per cent to 50 per cent less than the civilian are being systematically shortened, cash sales population, the mills are operating on a very are increasing, and many dealers are selling profitable basis. only to those who discount their bills. This Our last report indicated that crop conditions policy is quickening the turnover and meeting were so exceptionally favorable as to almost to some extent the enlarged capital demand certainly preclude the maintenance of. condue to high prices. The high prices of all comditions at the same high ratio. This has proven modities do not seem to deter purchasers to any well founded, particularly with regard to cotton, extent. Consumers, especially the middle and which has been unfavorably affected by dry lower classes, are purchasing merchandise they weather in the southwest, while the estimates would never have thought of buying in normal of the crop have been reduced about 2,000,000 times. This is evidently due to the fact that bales. Many reports say the crop, however, they have more ready money than ever before was never better, and that while the dry and seem bent on spending or squandering it. weather has made it a little late, it is clean with Government activities in the neighborhood of fair growth and well fruited. Some neighborcamps and at the seaports of the district have hoods report rather too much rain in the last stimulated trade to almost feverish activity and 10 days. The expected reduction of about living conditions are strenuous. 2,000,000 bales in the size of the crop promises Lumbermen and dealers in all construction to be a blessing in disguise to planters. It will materials report no difficulty in selling all tend to stabilize prices on a satisfactory basis, procurable supplies, their only trouble being and reduce the expected excess stocks which with labor and railroad delivery service. will have to be carried over, until shipping can Wagons and other farm equipment are in be provided for their export to our allies. demand, the output as a rule being from 25 per When this shipping can be provided, a ready cent to 50 per cent of normal, due particularly market is anticipated abroad for all the cotton to scarcity of iron and steel; 90 to 95 per we can spare. cent of the output of iron and other metal Corn has been reduced by a dry June and plants is on account of Government work. July. The yield of wheat promises to be some- Building operations are chiefly for Govern- what disappointing as it lacked moisture before ment housing. Nearly all Government con- maturity. struction work is on cost-plus basis, and several The tobacco markets in South Carolina, contractors report that they are taking such North Carolina, and Virginia have now opened work from patriotic motives only, as the un- in turn, crop reports are excellent, and the Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
SEI>TEMBEB 1,1918. FEDERAL BESERVE BULLETIN. 881 demand for the products of the weed is un- finished will employ about 4,000 men. This precedented. Prices are apparently 25 per means a total expenditure in construction of cent to 33 J per cent above those of last season, approximately $7,000,000. It is expected that and average grades are selling in the neighbor- all the units of the Government powder plant hood of 40 cents per pound. The monetary at Hadley's Bend, Nashville, Tenn., will be yield promises to be beyond precedent. completed by the end of August, after which Government financing has made serious de- approximately 1,000,000 pounds of powder mands on the resources of the banks. But for will be produced daily. these, crop financing would apparently have On account of scarcity of water, the power been a comparatively simple matter. The supplied by electric power companies to north response to Government calls, however, has Georgia manufacturing establishments has been been cheerful and liberal, notwithstanding the considerably curtailed and it has been found fact that it has necessitated heavy rediscount necessary for the War Industries Board to demands upon the Federal Reserve Bank, issue priority orders to govern. Some shrinkage of deposits is reported, but on The financial condition is generally satisthe whole the volume has been well maintained. factory, with little demand for loans compared Curtailment of unnecessary credits has been with previous months. Member banks of the urged and enforced, but always with discre- Federal Reserve system are availing themselves tion and without curtailment of necessary ac- more of the facilities of the Federal Reserve tivities. Clearings indicate an increase of Bank and thereby assisting the Government nearly 50 per cent over the corresponding period through the purchase of certificates of indebtedof last year. ness. Midsummer collections are good and On the whole, conditions may be regarded bank clearings are increasing. as prosperous, notwithstanding we are at war, Reports from Alabama show that the farmers and the news from abroad during the past three paid for 73 per cent of the fertilizer used in weeks has brought a feeling of cheerfulness making the 1918 crop before taking it to their which has not been apparent for some time past. farms; whereas they had previously paid about 10 per cent and 90 per cent when the crop was DISTRICT NO. 6—ATLANTA. harvested and sold. This increase in cash Of the outstanding features, perhaps none payments is true largely throughout the district. affords greater satisfaction than the almost While there are continued reports regarding practical certainty of splendid crops through shortage of labor on account of draft, a conthe Sixth Federal Reserve District. General siderable part of this shortage is due to the business conditions show no change of any many thousand workers empk^ed in the shipconsequence. In the centers wholesalers and yards and other Government work in the south. jobbers are busy with fall orders and report Some fear is expressed as to the supply of labor excellent advance orders from retailers who for cotton picking, but this is not seriously fear further advances in prices, scarcity of viewed by the planters, as men have in the past merchandise and difficulty in getting deliveries. picked but little cotton, the picking being done The coal mines of Alabama and Tennessee by women and children; and though there may have been making marked gains in output; be some handicap it is not viewed with any great and there is practically no let-up in the general alarm so far as cotton picking is concerned. mining and industrial situation in these sec- A free farm-help bureau has been established tions. Shipbuilding continues extremely ac- with headquarters at the University of Tennes* tive in all ports and millions of dollars are being see, Knoxville, Tenn. expended in these great enterprises. At Bruns- Alabama.—In Alabama, cotton is in a fine wick, Ga., the Government's picric acid plant state of cultivation. The weather for the first is being rapidly pushed to completion and when 15 days of August was good for the crop, with Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
882 FEDERAL RESERVE BULLETIN'. SEPTEMBER 1, 1918, the exception of in the north, where hot, dry Georgia.—Cotton is opening fast in the weather was experienced. The plant is heavily southern and central sections, and picking has fruited and continues to bloom freely, with become general in the ' south, with ginning some picking, more or less, in the south. reported in many places. The hot weather and Generally speaking the crop has been laid by, bright sunshine, followed by rainy weather", and is well worked, though labor has been caused some scalding and shedding of leaves, somewhat scarce. Since the rains set in, the but prospects are still very encouraging. The fields are in bloom and picking up new growth, crop received good cultivation on account of indicating a good top crop. The weevils have dry weather, and was laid by with less grass begun to appear in some sections but no great in it than in former years. The boll weevil has damage from this source is expected. appeared for the first time in a number of In spite of the insufficient rainfall, the corn counties in the State and since the rains has production this year in Alabama is excellent. been very active, but the crop is sufficiently The drought was broken in time to prevent advanced to insure a fair crop even in these serious damage to the crop, the condition sections. The plant is good, well fruited being about 3 per cent below the ten-year with plenty of bloom, and sufficiently advanced average, with an indicated production of to make a good crop before frost. The prob- 74,000,000 bushels. able total production is estimated at 2,250,000 The State should produce a yield of approxi- bales, which will vary from now to harvest time mately 1,400,000 bushels of wheat, as compared according to weather conditions. with 930,000 bushels harvested last year; Sea Island cotton acreage is much lower than and while this is short of normal consumption, last year, now promising only somewhere about the increase is very gratifying in the face of 30,000 bales, and is seriously threatened by the unfavorable conditions. boll weevil. Mississippi.—In Mississippi the condition of The State's wheat crop has been harvested the cotton crop varies from below average to and the land largely replanted in peas or some excellent. Shedding rust and red spider have other late crop. It having been demonstrated caused some damage, but there is very little that wheat growing is a profitable crop in weevil activity reported, due to dry weather. Georgia, wheat acreage will become more ex- In the northeast part of the State and in the tensive each year. southern half of the delta the crop is good, but Estimates of the yield of winter grains were elsewhere, except in localities favored by below expectations. The straw gave promise rains, there has been serious damage due to of a good crop, but the heads did not fill out drought and hot northeast winds. properly and the grain was light. In view of The strong feature of the Mississippi wheat sugar shortages, much interest is being taken crop was the average yield per acre of 16.5 this year in the sirup crop, sorghum, and sugar bushels for the State as compared with 15.3 canes. Sirups are about as usual, but the bushels for United States. Most excellent sugar is small and late. In the old boll weevil yields were obtained in the delta, showing in section farmers have been trying a light tobacco many places 25 to 30 bushels per acre. crop which has turned out above average and The corn crop suffered severely during July, is about half gathered. especially in the middle and southwest sections Both early and late varieties of corn are well of the delta, but middle August rains have matured. The crop suffered severely in a wide greatly improved the condition not only of belt across the middle of the State. On either corn but potatoes and peas, and relieved the side of this section crops are reported exceppasture problem by refreshing the forage and tionally fine and will show an increase over supplying much-needed stock water. la^st year's production for the entire State. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
SEPTEMBER 1,1918. FEDERAL RESERVE BULLETIN. 883 Florida.—The corn crop was considerably serve District. Grain estimates, while necesdamaged by the July drought, but will exceed sarily falling below previous calculations, still last year's production by some 800,000 bushels. give promise of large harvests, and the patriotic Most of the crop has been harvested, and the spirit of employees who, in spite of high yield is good except in the west, where dry temperatures, have continued at work, has weather caused some deterioration. tended to discount any check to manufacturing Cotton in the central section is opened and of an essential character. With more than picking is active, with picking beginning in enough essential business to absorb the availnorthern section. Some scarcity of labor and able supply of raw materials and to keep labor of gin facilities is reported. About 75 per cent well employed, prosperity seems to prevail in of the acreage was planted in Sea Island cotton, an unusual degree. Especially is this condition which shows * about 10 per cent reduction over reflected in communities where considerable Sea Island cotton last year. war work is available, while in localities not The increase in winter wheat over last year so favored, owing to the crops harvested or is assured, and while spring wheat is some- approaching harvest, there is assurance of conwhat off, the production will be considerably tinuation of good business. more than last year. Throughout the district, and especially in the Tennessee.—The cotton acreage is larger than industrial sections, a very strong demand for last year, and the plant is earlier and in a good loans prevails at firm rates, money ruling strong state of cultivation, clear of weeds and grass. at 6 per cent, with the feeling expressed that With favorable weather cotton will probably there will be but slight deviation from this make a record yield per acre in this State this rate for the period of the war. The patriotic year. and cooperative spirit manifested by the banks Tobacco is about ready to cut and promises enabled this district very materially to overa fair yield. There are some indications that subscribe its allotment of United States the crop will not be an average on account of certificates of indebtedness in the latest issue. dry weather. Allotments were absorbed with comparative Corn is in good to excellent condition in the ease, at the same time keeping essential busieastern and central sections. Some reports ness operative and permitting the financing of indicate a yield equal to that of the year 1917, large volumes of Government business without but these large yields are based on the proba- any crippling of resources. bility of late frosts, as considerable corn was Early marketing of grain has appreciably planted late. eased the financial situation, especially in the Louisiana.—Cotton and late corn are doing smaller money centers, and an increased tendwell except in the southwest section, where ex- ency in this direction is indicated as the marcessive rains damaged cotton to some extent. keting of other farm products proceeds. The The plant is rapidly opening and picking is Federal Reserve Bank is cooperating in the going on. Sugar cane is in fair to excellent financing of a very heavy crop movement. condition, with rice showing much improve- Some acceptances are being used in connection ment. The southwest was recently visited by with these operations. storms disastrous to early rice, but this loss was Wheat, oats, and other small grain have pracsomewhat offset by improvement in younger tically all been harvested with splendid yields. rice from much needed heavy rains. The large, if not bumper crop of corn, indicated DISTRICT NO. 7—CHICAGO. by early reports of correspondents, has been materially reduced by the intense heat during the Despite drought and heat waves of exceptional severity, with resulting impairment of month of August. The damage is confined to crop prospects, a decidedly hopeful feeling the southern part of the district, principally in prevails throughout the Seventh Federal Re- the State of Iowa, where recent reports from the Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
884 FEDEBAL RESERVE BULLETIN". SEPTEMBER 1,1918. affected area predict a 25,000,000-bushel loss. Labor is well employed at high wages, show- Outside the stricken district corn appears to be ing somewhat of an independent spirit in view in better than the average condition and with of the large demand for men. The United recent showers accompanied by cooler weather States Employment Service Committee is exthe yield of this crop promises to be large. The pected, through its operations, to curtail the potato crop in Michigan, Wisconsin, and Iowa, migratory tendency of labor, brought about by other than in localities affected by the drought, increased wages and competition among emholds good promise. A general decrease in the ployers for men, especially in the trained field. flow of milk is reported owing to the short and Orders for steel continue to call for a tonnage dry pastures. considerably in excess of the output. Auto- With increased restriction of civilian wants, mobile manufacturers working to full capacity there is a growing disinclination among dealers on war ordersfare not suffering from the curtailand manufatcurers alike to incur obligations ment of their pleasure-car output.^ extending into the future. While Government Clothing manufacturing is well engaged. price fixing has effected a healthy and stable Owing to the shortage of woolens, spring offercondition in various lines of industries and ing in the clothing line will be largely restricted business, some anxiety is expressed by retailers both in quantity and quality. However, large as to the effect of future development along this stocks on hand will enable retail merchants to line, especially in staples that have not yet come take care of the demand for some time to come. under Government supervision. Manufacturers of agricultural implements War needs still continue to dominate the dry- are experiencing a normal amount of business goods markets, and, with steadily tightening for this season of the year. Tanneries are busy restrictions on regular trading, purchases for s upplying insistent demands for leather. Boots future delivery have been lessened considera- and shoes continue in active demand. Large bly. Jobbers are adjusting prices to the new Government orders are given preference over levels fixed at the mill centers by the Govern- civilian business. Dealers in hardware are now ment, and it is hoped there will soon be an operating under a pledge to the War Industries abatement of the hesitation that has appeared Board to sell finished steel and iron products for some time among retailers. for essential purposes only and are further Though Government restrictions have greatly handicapped by increasing difficulties in securreduced the volume of business derived from ing materials. Piano manufacturers with rethe sale of sugar, wholesale grocers report an duced outputs report a demand for their product exceptionally good trade, with an increased in excess of the supply with a corresponding demand for canned goods. Canning factories increase in selling price. Jewelers report busiare beginning to operate with good prospects ness in excess of corresponding periods in 1P17, for an excellent pack. the bulk of the business being in fine jewels and High prices continue to prevail in the live- watches. stock markets. Drought has brought about Brewers report a further decrease in producheavy shipments. tion, with wholesale prices showing an increase Deferred classification and enlistment refusal of 100 per cent over last year. Confectioners, to mine employees who can not readily be re- still operating under the 50 per cent sugar placed has helped to remove a condition that restriction, are utilizing their sugar supply to until recently threatened materially to decrease the utmost and are necessarily experiencing a the production of coal. Additions of available period of readjustment. cars have created decided improvement in the A slight increase in activity is reported in coal transportation problem. Though showing the investment securities market, limited, an increase, the output of the Illinois mines is however, to the trading of individuals, trustees, still far short of the demand. and financial institutions other than banks. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
SEPTEMBER 1,1918. FEDERAL RESERVE BULLETIN. 885 The clause in the new tax bill providing an manufacturers are adjusting their plants for the income tax on municipal bonds, heretofore production of " essentials." A number of conexempt, has discouraged trading in this class cerns in this district are now working almost of securities. exclusively on Government contracts. Trading in building materials, other than Iron and steel manufacturers continue espethose needed in operations directly connected cially busy. Manufacturers of boots and shoes with the prosecution of the war, has practically are also working to capacity, with sufficient come to a standstill. Building permits and orders on hand to carry them well into the values involved in 15 cities for the month future. In many instances they have withof July show a reduction over the correspond- drawn their sales force from the field. Manuing month in 1917. July, 1918, permits totaled facturers of farm implements report substantial 2,553, valued at $10,226,595, as against 2,700 increases in the volume of sales over August of permits, valued at $11,660,288, a year ago. last year, and also state that their orders on Collections, as reported by all correspon- hand for future delivery are much larger than dents, have never been better, and outstand- at this time last year. It would seem that the ings have touched the lowest records in farmer is endeavoring to overcome the help history. Merchants generally report that while situation, as well as increase his output, by the sales in amount of merchandise handled are adoption of labor-saving machinery. Wholenot as large as in previous years, the amount salers of dry goods report a gratifying volume in dollars and cents and profits compares of orders on hand, and say that indications point to a good fall business. favorably and in most instances shows an increase over corresponding previous periods. Department stores and retail merchants gen- All lines of business and industry are experi- erally report a good business, though the high encing a shortage of labor and are confronted prices and the agitation against unnecessary by the problem of securing sufficient goods and buying is having some effect on the volume. It material to supply the demand. is stated that merchants are buying conserva- Clearings in Chicago for the first 15 business tively, and that many are anticipating their days of August were $1,261,000,000, being payments. Collections, as a rule, are reported $137,000,000 more than for the corresponding to be good. 15 business days in August, 1917. Clearings Reports from the banks in this district indicate reported by 21 cities in the district outside of a good demand for money, though not quite so Chicago amounted to $202,000,000 for the strong as a month ago. During the past month first 15 days of August, 1918, as compared many of the member banks have been able to with $142,000,000 for the first 15 days of liquidate their indebtedness to the Federal August, 1917. Deposits in 12 central reserve Reserve Bank. On July 22 the paper discity member banks in Chicago were counted by the Federal Reserve Bank of St. $877,000,000 at the close of business August Louis for member banks amounted to $61,061,- 17, 1918, and loans were $653,000,000. De- 000, while on August 22 it amounted to $54,posits show an increase of approximately 629,000. In the large cities the bank rate to $58,000,000 over last month and loans an customers continues at 6 per cent for pracincrease of approximately $19,000,000. tically all classes of loans, and in the country districts it is somewhat higher. Some improve- DISTRICT NO. 8—ST. LOUIS. ment has recently been shown in the commer- Business activity in this district has been well cial paper market, though it is still considerably sustained during the past month. In manubelow normal. The rate prevails at 6 per cent facturing lines a disposition to center upon for all names and maturities. war work is noted. Some "nonessential" en- The growing crops in this district have been terprises have suspended operations, and many greatly damaged by the recent drought and Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
886 FEDERAL RESERVE BULLETIN. SEPTEMBER 1,1918. excessive temperatures accompanied by hot sheep, 19,499 head. The receipts during July winds. The corn and cotton crops have espe- also show substantial increases over the corcially suffered. The condition of the corn in responding month last year. the seven States in this district was estimated There is an increasing demand for both by the Government on July 1 to be 86.3 per skilled and unskilled labor in this district. cent, and on August 1 its condition was esti- This has brought about competition among mated to be only 74.4 per cent. This is 5.7 employers for men, which has resulted in a per cent below the 10-year average. The con- migratory tendency on the part of workmen. dition on August 1 is estimated to yield However, this situation is expected to be 152,638,000 bushels, which is 11,070,000 bush- greatly helped by the work of the United States els less than the estimate of July 1. The con- Employment Service Committee. dition of the cotton in this district was esti- Postal receipts during July in St. Louis, mated by the Government on June 25 to be Louisville, Memphis, and Little Kock all show 92 per cent, while on July 25 its condition was substantial increases over both the previous estimated to be only 84.2 per cent. However, month and the corresponding month last year. this is 11 per cent better than the condition on Reports from St. Louis, Memphis, and Little July 25 of last year and 5 per cent better than Rock for July show perceptible decreases in the the 10-year average. There are very few re- number of building permits issued and the estiports of insects. Fruits and vegetables have mated cost of construction, in comparison with also suffered from the drought and excessive the corresponding month of last year. The heat, one correspondent stating that apples report from Louisville shows a slight increase. were drying on the trees. Toward the latter part of August temperatures became lower and DISTRICT NO. 9—MINNEAPOLIS. rains fell throughout the district, but in many Throughout the eastern part of the district a sections it came too late materially to benefit generous harvest has insured sound business the corn. However, it did benefit the late and financial conditions for many months to truck and forage crops. come. Light crops are the rule in the western Threshing of the winter wheat is nearing half of the district, while in the northern half completion. A preliminary estimate by the of Montana the crops are a failure. Good Government shows that the acreage in this dis- yields at high prices'mean a heavy money trict is expected to yield 35,715,000 bushels, return to farmers upon the crop which is now which is 14,683,000 bushels more than the esti- being threshed, and further heavy returns mate of December, 1917, and 12,751,000 bush- throughout the eastern half of the district are els more than the five-year average. The promised. This insures a satisfactory volume quality of the wheat is estimated to be 92.6 of merchandising business at country points per cent, which is 3.2 per cent better than the which will reflect itself in satisfactory business average. Plowing for fall wheat is well under at distributing centers. way where the condition of the soil has been From an industrial standpoint the district is suitable. In many sections, this work has been working to full capacity, turning out ships at retarded on account of dry, hard ground. Lake Superior ports and a large amount of On account of the drought and heat, pas- Government material at the shops and factories tures have been burned up and water has be- at interior centers. come scarce in some sections, and many farmers The demand upon the banks of the larger have been sending cattle, hogs, and sheep to cities has continued very heavy during the market. The report of the St. Louis National month. Rates show little or no change. Stock Yards for July shows increases in the It has gradually become more and more receipts of live stock over June as follows: apparent during the past several weeks that a Cattle, 32,266 head; hogs, 49,924 head; and very restricted supply of labor is in prospect. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
SEPTEMBER 1,1918. JFEDEEAL KESERVE BULLETIN. 887 Men are hard to obtain, and wages are very general than in former years. That this is high. There has never been a period in the probably true is borne out by the fact that bank history of the district when there was such full clearings in the principal cities of this district employment for all who are willing to work. for July increased 30 per cent over those of July, Women are more and more replacing men, 1917. This is a much larger increase over the especially at the lighter tasks, and in clerical preceding year than was reported in June. capacities, and the district is beginning to feel Financial relief has been promised the the effect of its substantial contributions of drouth-stricken portions of the district by the volunteers and drafted men. War Finance Corporation, with the Kansas It is clear that the inability to obtain labor City Federal Reserve Bank acting as agent. and skilled help will shortly make itself felt in Movement of crops has caused the demand for such a way as to compel curtailment and some money to remain steady with rates firm. The restriction in many different lines of business. work of the Capital Issues Committee is having A very favorable element in the agricultural a very wholesome effect in curtailing the issues outlook is the fact that harvesting is being of wild-cat securities. completed at least two weeks earlier than in an Agriculture.—The outlook for the corn grower average year. Grain crops have all come to is not as bright as a month ago. Unfavorable an early maturity and over the greater part of weather during July reached its climax in an exthe district the harvesting of small grains is tended period of excessive heat and caused practically finished. Frequent rains have some- marked deterioration in corn except in the what delayed threshing and have done some Rocky Mountain States, where satisfactory damage to grain in the shock, chiefly through progress was made. A considerably diminished discoloration. Threshing returns are satisfac- yield is now to be expected from this district, tory, and the farmers are enabled to start fall as many fields throughout Oklahoma, Kansas, plowing earlier than has ever been known before. and Nebraska are damaged without hope of While rains have been somewhat of a hindrance recovery, while other areas over a more extendto the threshing of grain, they have put the soil ed territory are injured. Winter wheat threshinto good condition for plowing, and the general ing is being completed with reports of grain of situation is such that there is strong encourage- exceptional quality. ment to believe that the acreage for 1919 will Wheat receipts increased in volume as the be largely increased. Even in the more north- harvest progressed, mounting to record proerly parts of the district all plowing will be portions at some milling centers. Receipts general within a week. on the local market set a new record for July, equaling almost four times the amount for DISTRICT NO. 10—KANSAS CITY. July, 1917. Demand for flour was well main- The progress of events during the past tained throughout the month, but the large month offers a less satisfactory outlook than in July. Corn prospects are much decreased, arrivals of grain more than sufficed and the with a yield likely to be considerably less premiums over guaranteed prices that were than last year. No improvement has been established during the heavy competition for shown in the coal situation, and the seemingly first wheat steadily declined. Milling activity uncalled-for slump in Oklahoma oil activities increased as the wheat became available made it impossible to maintain the standard until the maximum capacity of flour output of the previous month. There is a spirit of was approached. The average activity during optimism throughout the southwest and a the month was 69 per cent, compared with desire to do all that is possible to further the 51 per cent a year ago, which is reflected in an Government in its endeavors. increase of 41 per cent in flour production. Financial.—It has been reported that the The sugar-beet crop in Colorado is reported to usual summer decline in business has been less be in excellent condition, with prospects of a Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
888 FEDERAL KESEBVE BULLETIN. SEPTEMBER 1,1918. large yield per acre, but the acreage is only the miners who produce gold exclusively but about 75 per cent of normal. are the producers of associated minerals of Live stock.—The movement of live stock which gold is the main value. The coal continues in satisfactory volume, with receipts shortage is becoming more certain as the and prices climbing to record figures. The year progresses, with prospects of ration cards number of cattle, hogs, and sheep received at unless material changes are effected. the six principal markets of this district each The zinc market was quiet and underwent a increased almost 100,000 head over the same small decline the last two weeks of July. month last year, establishing a new July Shipments in the Missouri-Kansas-Oklahoma record for total receipts. Not only was there district were comparatively large, resulting an increase of 22 per cent in hog receipts, but from the efforts of producers to reduce surplus the average weight of 217 pounds made a stocks. Stocks of spelter decreased about substantial gain over the average of 207 3,000 tons during the month, which is said to pounds for July a year ago. Hogs commanded be due as much to decreased production as to record prices for 1918 and prices for some cattle larger shipments. The demand for lead was were greater than before. very heavy, but was far from being satisfied, The enormous movement of cattle to the and the scarcity of the metal prevented much markets in July was due partly to the dry business. weather, which burned the pastures and gen- Oil.—Operations in the Kansas fields comerally forced premature shipments. Conditions pare favorably on the whole with those of in the hog market changed from good to the June. Although there were fewer completions worst of the present year, as the weather in July, the new production from the comcaused a movement of light and mixed hogs to pleted wells was greater than in the preceding the market. Demand from the packers was month. Fewer large gushers were reported, good, hog slaughtering increasing about 10 but the average yield was an improvement. per cent over July last year, which along with The total estimated production from Kansas, a strong shipping demand caused the high including both new and old wells, shows an prices for pork featured at the markets. The increase of 18 per cent over the corresponding fall movement of live stock has started, period in 1917. influenced perhaps by the high prices at the Activities in Oklahoma failed to equal the markets, and indications point to a heavy high standard of June, and the only cause set run from now on. Ranges are reported to be forth is that the usual lull accompanying the in the best condition in years in the Rocky extremely hot weather was more generally Mountain States, but need rain badly in felt. Completions were only 40 per cent as Oklahoma, Kansas, Nebraska, and New Mexico. numerous as in June and the new production Mining.—There is little change to be re- decreased almost 30 per cent. ported in the mining industry of Colorado. Wyoming operations remained practically The tonnage of ore decreased slightly, owing to stationary. One more productive well was the labor shortage and the continued draft of drilled in July than in June, but the new promen to the army. This decrease may be ex- duction suffered a slight decrease. The numpected to continue, as the available labor supply ber of wells drilling equaled those of the month is diminished. Those gold mining interests preceding. which succeeded in surviving the tense period Lumber and construction.—Building permits earlier in the year managed to operate through issued for June in the larger cities in this dis- July, but it is reported that many of the trict totaled 44 per cent under those for the larger producers are contemplating a shut- same month last year. Construction activities down because of the narrow margin of profit are very limited and business is reported to be now afforded. Those most affected are not unusually quiet. Retail lumber dealers car- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
SEPTEMBER 1,1918. FEDERAL RESERVE BULLETIN. 889 ried larger stocks than normal in most lines earning much more than formerly and their through July, with a continued small demand extended buying is in noticeable amounts. from builders. Country orders are now being Wholesale trade is good and manufacturing received in increased volume as the summer continues active. Collections are reported as advances. Brick production is being main- being fair to good. General conditions in the tained at the maximum amount possible, but mercantile line may be considered satisfactory general construction work is gradually slowh "is increased purchase activity is being accomdown owing to difficulty in securing adeq•' panied by a decrease in indebtedness. labor. Road building is much less than at DISTRICT NO. 11—DALLAS. this time last year and the disposition through- The outstanding feature of the whole finanout most of the territory is to postpone such cial and economic situation in this district is work until after the war. More normal conthe serious and substantial decline in crop ditions are reported in the oil districts of the prospects since our last report. Six weeks ago Southwest than elsewhere. it seemed likely that this district would pro- Labor.—There were fewer labor troubles duce some four million bales of cotton. Since during the past month than has been the case that time over practically every section of the heretofore, and with Government control of the district there has been little rain, and there has employment situation, which has lately1 been undoubtedly been a very great deterioration announced, the outlook is brightened for in the cotton crop. Opinion differs somewhat the essential producer. In the States wholly widely as to what the total yield will be in the within this district Government agencies re- district. Allowing for some exaggeration, it ceived in July applications from employers for is not likely that the total yield will run over some 30,000 persons and about 15,000 appli- 3,000,000 bales, and may fall substantially cations from those desiring employment. Since below this figure. Similar conditions have the harvest the greatest demand for workers to some extent affected other crops, and have has come from the mining districts of Colorado also affected the range in the cattle districts. and the Missouri-Kansas-Oklahoma district and Unfortunately the serious conditions which from the oil fields. Changes in immigration obtain this year apply with special force to the restrictions, which permit a larger movement areas affected by the drought last year. On of Mexican laborers to the Southwest, offers a the whole it seems certain that throughout the means of relieving the shortage in that section. district returns from agriculture will be greatly Mercantile.—Merchants are finding it in- lessened and in probably one-third of the discreasingly difficult to secure stocks of many trict there will be a very serious and in many lines, for as the needs of the Government sections a practically complete crop failure. The increase the surplus merchandise for the con- extreme drought has very seriously affected the sumer is being diminished. Those who are range conditions in the stock-raising portions of the district and has caused and will cause so fortunate as to have large stocks of goods on very great losses to stockmen during the hand find little difficulty in disposing of them, winter. This situation does not obtain in but on the contrary are rapidly adopting the every portion of the stock-raising sections of policy of conservation. This district is not this district, but this is so largely true that its affected as much by the high wages paid effect is sure to be quite serious. Notwithin some industries as the number of manustanding these conditions, trade has held up as facturing establishments is relatively small a rule very well, and on account of the increased when compared with some other sections of prices of merchandise of all sorts the volume the country. In the cities, however, the is practically as great as it "was at this time last larger employment of women is being reflected year. There is a very general disposition toin the sales of retailers. Many of the women ward greater economy in practically all pornow employed have not worked before or are Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
890 FEDERAL RESERVE BULLETIN. SEPTEMBER 1,1918. tions of the district, and the banks and finan- cities of the district during the month of July cial institutions are practicing greater caution show a decrease in valuation of 21.1 per cent in granting credit extensions than heretofore. over the same period last year. The grain crop of the district, which was Post-office receipts at the principal cities comparatively small and confined to a few of the district for July this year show an favored sections, has been harvested, and increase of 84 per cent over the same period generally the wheat has been sold. The feed last year. crops, such as oats, have as a rule not been sold, On the whole, the situation is not good, and but are being kept by the farmers for their own there is some feeling of discouragement in the use. Cotton has for the last ten days moved district generally as to the outlook. It is in substantial quantities in the southern por- believed, however, that the final returns will tion of Texas, and picking will soon be active be rather more favorable than is now anticthroughout the district. The serious crop ipated, and that we may reasonably hope for condition and the prospects for a compara- conditions to readjust themselves somewhat tively small crop have had the effect of bring- as time goes on. ing better prices, and cotton is being sold pretty DISTRICT NO. 12—SAN FRANCISCO. rapidly as picked and ginned. We are, and have been for the last ten days, shipping cur- Intense agricultural and industrial activity rency to the banks for cotton moving purposes has characterized the past month in this in fairly large amounts, and such shipments district. The grain crops now being harvested will undoubtedly continue on an increasingly are disappointing on account of the small heavy scale for the next 30 days. average yield per acre. The total production The demands on this bank for rediscounts.to of wheat and corn, however, is in excess of last member banks have been steadily heavy, and year, but oats, barley, and hay are far below the aggregate amount held by us is greater last season's output. Fruit crops are, on the than at any time in the history of the bank. whole, good. Transportation facilities, although Such rediscounts will continue in large amounts hard pressed, are handling the fruit shipments and without substantial diminution until about satisfactorily. The labor resources of the the first of October. After that time w^e should district are being strained to the utmost to see quite heavy liquidations and by early win- provide the workers required to ^harvest the ter our rediscounts should be reduced to ap- crops without loss and to supply men for the proximately one-half of the amount now held. essential industries, such as shipbuilding and Interest rates have grown somewhat firmer, but lumber. Women in large numbers are particwe have noticed no disposition on the part of ipating in the harvesting of crops, and under banks to exact higher rates than are reasonably favorable conditions. The weather has been warranted by conditions. satisfactory for harvesting. There is a shortage of water for irrigated lands and hydroelectric Among the outstanding matters of imporplants. The prices of all farm products are tance is the fourth Liberty loan campaign soon high. to begin. Our organization to handle this loan is being perfected and our publicity depart- The bankers of the district are beginning to ment, is, and for some weeks has been, actively realize that the Government's financial reengaged in preparing public opinion for it. quirements must have first consideration. The Bank clearings at the principal cities of the quotas of the three issues of the present series district for the month of July show an increase of certificates of indebtedness were not fully of 26.3 per cent over the same period last year. subscribed, except in two States. The fourth The building trade has been greatly restricted^ issue has been oversubscribed. This was acthough there is some substantial improvement complished in part as a result of a meeting going on. Permits issued at the principal called in San Francisco by the Federal Reserve Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
SEPTEMBER 1,1918. FEDERAL RESERVE BULLETIN". 891 Bank, attended by about 150 bankers from ' Cotton growing has spread to the great inthroughout this district for the purpose of land valleys of California. Besides several considering the matter of financing the Govern- thousand acres in the San Joaquin Valley near ment. It was there agreed that banking re- Tulare Lake, about 1,400 acres have been sources should be conserved, and loans cur- planted in the Sacramento Valley near Chico. tailed except for necessary expenditures con- It is reported that a cotton gin is to be erected nected with essential industries, and that mem- near Fresno to handle this season's crop. ber banks should aid their nonmember corre- The 1918 walnut crop of California is estispondents by accepting their notes secured by mated at 15,000 tons, the same as in 1917. Treasury certificates, which they in turn might, About 95 per cent of the United States supply if necessary, rediscount with this bank. comes from this State alone. The almond pro- Interest rates in the principal coast cities are duction this season is expected to be larger steady, the prevailing rate for the month for all than last year's crop of 3,000 tons. classes of paper being almost uniformly 6 per It is predicted that 175,000 tons of raisins cent. In the inland centers, where agriculture will be produced in California this year, this is the principal activity, rates ,are higher, the being 8 per cent more than last year and nearly prevailing rate for paper eligible for rediscount double the output of 1912. with this bank being approximately 7 per cent. The apple crop of Washington, Oregon, and Business failures in this district for June, as California is estimated at about 10 per cent reported by R. G. Dun & Co., were 102, com- less in each State than last year's production pared with 151 in June, 1917. The amount of of 25,689,000 boxes, but the fruit, generally, is liabilities was $675,000, compared with $696,053 of better quality. in the corresponding month of 1917. Prunes in California are expected to produce July bank clearings for 20 principal cities of the normal crop of 150,000,000 pounds. In the district increased 11.3 per cent over the Oregon the prune crop will be the largest ever previous month and 30.6 per cent over July, harvested, and is expected to be in excess of 1917. 50,000,000 pounds. Building for the same cities during July The peach crop is about 50 per cent below totalled $5,022,000, being 6.6 per cent less than normal. Pears in Oregon are also normal, the previous month and 10 per cent less than while in California they are yielding better July, 1917. than an average crop. The Idaho fruit crop In spite of the low average yield per acre, the is almost a complete failure this year owing to wheat crop now being harvested in the district unfavorable weather conditions. is expected to be 83,870,000 bushels, nearly 20 Carload shipments of cherries, apricots, per cent larger than last year. The crop of peaches, pears and plums in California, for the oats and barley will be about 10 per cent portion of the season up to August 9, number smaller than in 1917. The condition of corn 6,565 cars, compared with 5,848 cars on the on August 1 indicated a yield of 7,888,000 same date last year. Prices for fruit in eastern bushels, nearly 10 per cent in excess of last year. markets have been higher than usual. The hay crop of this district will not exceed Citrus fruits on August 1 showed an average 12,000,000 tons, about 15 per cent less than last condition of 65, the June drop having continued year. Owing to the decreased acreage planted well into July. the production of potatoes is estimated at Reports from the canneries of southeastern 33,468,000 bushels, nearly 30 per cent below Alaska state that the salmon pack promises to the 1917 yield. be as large as last year's bumper production. The bean crop in California is estimated at The Washington and Oregon pack will prob- 9,378,000 bushels, compared with 8,091,000 ably be normal. The Government will take bushels in 1917. about 70 per cent of the output. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
892 FEDERAL EESERVE BULLETIN. SEPTEMBER 1,1918. Lumber production in Washington and Changes in the ownership of gold in the Oregon continues at a high level. For the banks' fund through transfers and settlements week ending August 7, 126 mills reported an during the five-week period amounted to 3.42 output of 79,012,793 feet, 1.16 per cent below per cent of the total obligations settled, as normal. These results accomplished under an against 3.59 per cent during the preceding 8-hour instead of a 10-hour working day four-week period. The continued high ratio schedule may be explained in part by the fact is due principally to heavy losses of gold by that the current product consists principally of the New York bank through the daily settlerough, large lumber instead of finished yard ments. Net changes in the ownership of gold stock. since the commencement of the operation of The shipbuilding plants of this district con- the fund of May 20, 1915, to August 22, 1918, tinue to lead the country in speed of production. amount to 0.94 per cent of the total obliga- The winners of all the record pennants, awarded tions settled during that period. Boston, Chiby the Emergency Fleet Corporation for the cago, St. Louis, and Cleveland show the largest month of June are on this coast. gains through the shifting of credits in the fund for the five-week period. Net deposits of gold in the fund by reserve banks during the five-week period amounted to GOLD SETTLEMENT FUND. $69,945,000, while net withdrawals by reserve agents totaled $10,500,000, resulting in a net As a result of the action of interior banks in gain of $59,445,000 in the combined funds. drawing upon their New York correspondents Aggregate balances to the credit of the banks in payment for subscriptions to Treasury cerand agents was $1,288,131,000 on August 22, tificates of indebtedness, without a correspondcompared with $808,247,000 on January 1, ing return movement of funds, the New York 1918, an increase of $479,884,000, or 59.4 per Federal Reserve Bank's net debit balances in the cent. daily settlements through the gold settlement Below are given figures showing changes in fund for the five-week period ending August 22 the fund between July 19 and August 22, both aggregated $345,489,000, while net credit transinclusive: fers of funds to New York from other Federal Reserve Banks amounted to only $206,000,000, Arriounts of clearings and transfers through the gold settlement fund by Federal Reserve Banks from July 19 1918, thus resulting in a net movement of funds away t to Aug. 22, 1918, both inclusive. from New York of $139,489,000. For the sys- [In thousands of dollars.] tem combined clearings and transfers through the gold settlement fund for the five-week pe- Total clear- Balances ings. adjusted. Transfers. riod amounted to $4,523,258,000 averaging $904,651,600 per week against a like average Settlements of— of $1,058,497,750 for the preceding period. July 19-25 944.335 46,487 80,000 July 26-Aug. 1 838,707 61,298 97,000 Average weekly balances adjusted between the Aug. 2-8 812,104 108,972 15,000 Aug. 9-15 806,193 84,506 55,056 reserve banks amounted to $77,548,500, as Aug. 16-22 853,803 86,481 21,000 compared with $65,634,250 during the pre- Total 4,255,202 387,744 268,056 Previously reported for 1918. 22,131,425 1,602,708 2,661,774 ceding period. Combined clearings and trans- Total since Jan.1,1918. 26,386,627 1,990,452 2,929,830 fers during the current calendar year to August Total for 1917 24,319,200 2,154,721 2,835,504.5 22 amount to 46.4 per cent of the total obliga- CLEARINGS AND TRANSFERS. tions settled since the commencement of the Total for 1918 to date 29,311,957 operation of the fund May 20, 1915, and ex- Total for 1917 27,154,704.5 Total for 1916 5,533,960 ceed the total obligations settled during the Total for 1915 1,052,6-19 year 1917. Total clearings and transfers from May 20, 1915. to Aug. 22,1918 63,053,276.5 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
SEPTEMBER 1,1918. FEDERAL RESERVE BULLETIN. 893 Changes in ownership of gold. [In thousands of dollars.] Total changes from Total to July 18, 1918. From July 19, 1918, to Aug. 22, 1918, both in- May 20, 1915, to Aug. clusive. 22,1918. Balance to Federal Reserve Bank. credit Decrease. Increase. ne 1 J 9 t o 1 u d 8 f l , e y g p o p 1 o l l 8 d s u , i s ts A Ba u 19 l g a 1 . 8 n . 2 c 2 e , Decrease. Increase. Decrease. Increase. since that date. 27,404 42,659 76,493 33,834 61,238 New York 453,661 260,745 121,256 "*""i39,"489" ""593,"i50""" Philadelphia 8i,535.8 56,982 62,390 5," 408" 86,943.8 Cleveland . 113,204.4 37,111 59,662 22,551 135,755.4 Richmond . 2,335.4 10,952 26,767 15,815 18,150.4 Atlanta 41,680 25,275 21,886 3," 389* 38,291 Chicago 14,469.9 43,012 76,529 33,517 47,986.9 St. Louis 24,884,7 775 29,180 28,405 53,289.7 Minneapolis 264.2 14,625 10,215 4,410 4,145.8 D K a a l n l s a a s s City . . 3 2 7 3 , , 3 4 8 7 3 1 . . 5 1 1 1 9 3 , , 0 4 6 4 4 5 3 8 4 , , 5 1 9 2 1 9 4,854 i5;"665* 5 1 2 8 , , 4 6 4 1 8 7 . . 5 1 San Francisco .' 87,028 45,171 42,718 2,453 81,575 Total 453,661 1 453,661 569,816 569,816 154,595 154,595 597,295.8 597,295.8 Gold settlement fund—Summary of transactions from July 19,1918, to Aug. 22,1918, both inclusive. [In thousands of dollars.] Balance Ag w g i r t e h g - ate A d g e g p r o e s g i a ts te Transfers. Dai A ly u s g e . t 2 tl 2 e , m 19 e 1 n 8 t , s b , o Ju th l y i n 1 c 9 l , u 1 s 9 i 1 v 8 e , . to i B n a fu la n n d c e at Feder B a a l n R k e . serve st J a u 1 t l l e 9 a y 1 m s 8 t 1 . e 8 n , t d w r G a i w o t l h a d - ls. de G po o s ld its. t t o d r a f r a a u a n g n w n s e d f d a e n . l r t s s 's tr a a f f g u a r n e o n n s n m d f d t e . ' r s s Debit. Credit. de N b e i t ts. d T e o b t i a ts l . cr T e o d t i a t l s. cr N ed e i t ts. b A c u l u 1 o s 9 g s i 1 . n e 8 e . 2 o s 2 f s , Boston 37,314 5,345 5,345 7,025 306.050 339,884 40,859 76,493 New York 238,745 22,000 22.000 19,000 225,000 345,489 l,460;758 1,115,269 121,256 Philadelphia 49,900 ""i,*566" 11,497 8," 900* 15^982 5,056 4,000 6,553 451,803 45S,267 13,017 62,390 Cleveland 30,620 5,043 6,534 5,043 11,534 5.000 1,431 402,235 429,786 28.982 59,662 Richmond 14,832 1,047 3,167 7,047 3,167 10,056 5,362 229,028 234.787 ii;121 26,767 Atlanta ... 17,444 6 3,637 9,056 16,887 8,627 124,862 121;473 5,238 21,886 Chicago 47,439 340 12,900 50,860 46,433 105,000 i9,666 548,702 (568,219 119,517 76,529 St. Louis 21,279 1,219 1,215 21,719 1,215 5,000 264;049 287,454 23,405 29,180 Minneapolis 13,124 1,301 1,501 12,385 122,620 118,210 7,975 10,215 Kansas City 33,435 4 1,133 15,504 1,133 59,000 173,418 247,483 74,065 34,129 Dallas 14,186 1,352 611 1,352 fill 22,000 872 71,510 88,656 18,018 8,591 San Francisco 26,125 148 11,264 12,148 31,194 53,000 5,000 100,167 145,714 45,547 42,718 Total 544,443 10,659 80,604 i 131,629 157,002 268,056 268,056 387,744 4,255,202 4,255,202 387,744 569,810 Federal Reserve agents fund—Summary of transactions from July 19, 1918, to Aug.2 ,j 1918, both inclusive. [In thousands of dollars.] Balance i With- Balance Federal Reserve agent at— j i la J s m u t l e y s n t a 1 t, t 8 e , - ; I i d w r G a i o w t l h d a - ls. de G po o s ld its. f d o f r r e a r t w s r a a t n o ls s- t D t r h a e r n p o s o u f s e g i r h t s s dr T w a o w it t h a a - l ls. de T p o o t s a i l ts. of A a b t u u c g s l . o i n s 2 e 2 e , ss j 1918. i bank. from bank. 1918. Boston 49,500 1,000 1,000 48,500 New York 100,000 !. 100,000 Philadelphia 91,999 I 2,000 4,485. 7,400 6,485 7,400 92.914 C R l i e c v h e m la o n n d d 3 0 2 5 , , 0 £ 0 00 0 j i 2,000 5,000 !. '"6*666" 2 5 , , 0 0 0 0 0 0 ""6,"666' 9 3 o 6 ;; ,5 o 0 o 0 o Atlanta 26,820 2,000 13,250 9,050 15,250 9,050 20,620 Chicago •. 139,218 ! 2,000 33,533 50,520 35,533 50,520 154,205 St. Louis •.. 29; 631 ! 20,500 20,500 50,131 Minneapolis 9,500 ' 1,000 200 |. 1,200 8,300 Kansas City 31,360 500 15,500 500 15,500 46,360 Dallas 584 584 San Francisco I 78,131 19,930 "i2*666" 19,930 *i2,"666' 70,201 Total. 684,243 I 10,500 76,398 I 120,970 120,970 I 718,315- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
894 EEDEBAL RESERVE BULLETIN. SEPTEMBER 1,1918. OPERATION OF THE FEDERAL RESERVE CLEARING SYSTEM, JULY 16 TO AUG. 15,1918. Items drawn on banks Ite in m d s is d tr r i a c w t n o ut o s n id e b a F n e k d s - Items drawn on banks i c n it y F (d e a d i e ly ra a l ver R a e g s e e ) r . ve e a r v a e l r R ag e e s ) e . rve city (daily i a n v e o r t a h g e e r ) . d 1 istricts (daily Number, i Amount. Number. Amount. Number. Amount. i Boston 6,555 $17,220,823 52,941 57.806,766 5,733 §7,042.176 New York 8,270 I 71,916,175 73,267 45,722,639 32,834 16,667,865 Philadelphia.. 9,464 ! 21,423,692 31,301 4,034,929 14,688 10,406,550 Cleveland 2,406 | 6,127,735 41,914 20,222,452 2,405 3,757,293 Richmond 1,656 5,041,926 32,322 9,308,673 5,227 5,980.125 Atlanta 1,600 1,170,282 18,486 4,755,174 2,149 2,580',203 Chicago 9,660 21,933,000 41,780 10,406,000 4,271 1,218,000 St. Louis 3,050 7,893,861 23,487 5,107,217 424 1,216,533 Minneapolis.. 2,625 6,816,580 14,596 1,537,233 866 1,449,222 Kansas City.. 2,513 8,703,020 37,112 10,264,461 5,047 6,159,050 Dallas. 1,204 1,541,033 17,069 4,619,208 2,308 824,970 San Francisco 1,226 2,812,005 22,055 7,262,511 452 1,200,304 Totals: July 15 to Aug. 15, 1918 50,229 172,600,132 406,330 131,047,263 76,404 58,502,291 June 16 to July 15,1918 63,549 192,220,658 391,264 143,751,620 74,128 72,555.997 May 16 to June 15, 1918 51,055 164,539,000 295,056 113,407,619 54,132 55,703!310 Apr. 16 to May 15. 1918 49,569 178,372,385 287,061 114,099,520 54,888 58,513,363 Mar. 16 to Apr. 15, 1918 55,034 159,441,188 271,506 98,201,962 53,725 53,391,691 Feb. 16 to Mar. 15, 1918 51,408 153,701,375 259,531 113,134,162 51,259 48,556,709 Jan. 16 to Feb. 15, 1918 46,207 153,847,568 227,312 44,654 42,852,372 Dec. 16, 1917, to Jan. 15,1918.. 48,549 148,033,108 253,458 89,065,135 49,342 52,175,578 Nov. 16 to Dec. 15,1917 47,678 171,723,439 240,756 84,440,761 46,353 58,458,952 Oct. 16 to Nov. 15, 1917. 47,574 166,552,773 232,723 64,296,210 45,393 53,089,827 Sept. 16 to Oct. 15, 1917.. 40,591 128,271,466 212,935 47,476,204 40,216 44,984,581 Aui?. 16 to Sept. 15, 1917. 36,306 100,331,694 182,191 41,323,621 32,564 40,648,168 July 16 to Aug. 15, 1917.. 36,727 98,075,919 175,625 4.0,353,278 31,273 37,981,022 June 16 to July 15,1917.. 38,476 109,722,256 182,622 41,004,720 33,941 46,762,698 May 16 to June 16,1917.. 37,898 97,322,883 179,193 38,599,461 33,150 38,314,393 Apr. 16 to May 15,1917.. 33,767 87,370,859 171,093 36,473,163 33,428 36,836,934 Mar. 16 to Apr. 15, 1917.. 31,162 60,288,002 168,607 32,666,959 32,008 34,693,542 Items handled by both Total (exclusive of items b p r a a r n e c n h t es b (d a a n i k ly av an er d - a d U v r n a e i w r t a e n g d e o ) S n . t a T t r e e s a ) s u (d re a r i l o y f Ite u ( m d re a s i r l y d o r a f a v w U er n n a i g t o e e n d ). T S r t e a a te s- s b N o e f u r m m ba e b n m e k r - s Q N o u n m m b o e m r b o e f r in banks on district. par list. Number. Amount. Number. Amount. Number. Amount. Boston 65,229 §32,069,765 7,315 84,065,396 417 248 New York 114,371 134,306,679 38,265 17,911,067 703 346 Philadelphia 55,453 35,865,171 6,772 4,478,135 630 325 Cleveland 1,321 §5,792,685 48,046 35,900,165 3,565 2,190,714 785 706 Richmond 186 542,940 39,391 20,873,664 1,458 500,538 549 359 Atlanta 4.212 783,509 26,447 9,289,168 2,980 760,875 398 318 Chicago 266 273,000 55,977 33,830,000 8,210 4,350,000 1,192 2,344 St. Louis 241 235,557 27,202 14,453,168 5,065 1,199,268 498 1,024 Minneapolis 18,087 9,803,035 555 189,135 831 1,201 Kansas City 2,166 1,353,290 46,838 26,479,821 3,380 365,000 978 1,985 Dallas ." 807 761,811 21,3SS 7,747,022 1,831 348,018 701 243 San Francisco 4,196 1,512,025 27,929 12,786,845 1,927 4,707,500 612 1,107 Totals: July 16 to Aug. 15, 1918 13,395 11,254,817 546,358 373,404.503 81,323 41,003,646 8,294 10,206 Juno 16 to July 15, 191.8 9,757 19,212,816 538,984 427,741,091 82,536 47,181,4.67 8,212 9,761 May 16 to June 15, 1918 7,623 12,355,115 407,866 346,005,044 77,750 39,054,003 8,165 9,710 Apr. 16 to May 15, 1918 8,294 15,141,604 399,812 366.126,872 60,771 30,928,185 8,113 9,475 Mar. 16 to Apr. 15, 1918 7,793 I 8,942,976 338,058 319;977,817 59,228 31,563,675 8.059 9,450 Feb. 16 to Mar. 15, 1918 7,700 6,413,071 369^ 898 321,805,317 58,991 25,827,757 s;oi3 9,425 J A J A J M M N S D O u a u e e p u o c a a n l n c p y g r t v y r . . e . . t . . . . 1 1 1 1 1 1 1 1 1 1 6 1 6 6 6 6 6 6 6 6 6 6 , t t t t t t t o t o t o t o 1 o o o o o o 9 F J N A J M A 1 S D O u u e 7 o u e p a n e b , c l v p g y y r e c . t t . . . t . . o . 1 1 1 1 1 1 1 1 1 5 J 1 5 5 6 5 5 5 5 5 , a 5 , , , , , , , , n , 1 1 1 1 1 1 1 1 1 . 9 1 9 9 9 9 9 9 9 9 1 9 1 1 1 1 1 1 1 1 1 8 1 7 7 7 7 5 7 7 7 7 7 , . 1 .. 9 1 . 8.. 7 7, , 7 1 1 2 8 8 5 3, , 4 8 0 3 2 6 , , 0 9 3 5 5 8 3 3 3 3 2 2 2 2 2 2 2 - 3 5 9 4 3 5 2 2 5 5 1 1 9 3 3 8 0 5 5 5 1 3' , . , , , , , , ' , . 6 7 0 7 6 0 2 2 0 3 7 9 7 6 4 2 3 8 4 8 0 8 0 7 7 2 5 9 8 1 1 1 7 3 2 2 2 2 1 1 1 1 1 1 2 1 9 8 8 7 6 9 8 2 7 0 4 2 3 2 6 0 7 2 7 4 , , , , , , , , , , , 7 6 5 9 7 4 6 3 6 4 2 3 8 2 3 8 1 0 4 8 8 3 2 5 3 8 5 0 3 8 0 9 5 , , , , , , , , , , , 2 8 1 8 4 5 3 2 9 6 7 5 5 8 0 1 5 1 6 5 7 3 1 6 3 3 0 2 9 4 8 4 7 4 3 3 3 2 2 1 1 1 1 1 8 3 0 6 8 3 9 6 2 9 5 , , , , , , , , , , , 8 4 2 7 5 1 4 3 5 1 9 0 2 3 9 2 9 3 4 8 0 2 6 6 3 7 4 2 0 4 2 0 5 2 2 2 1 1 1 1 7 4 9 3 2 1 1 3 1 7 1 ; ; , . ; , , , , , . 7 5 1 6 0 5 3 4 6 1 4 0 1 9 0 4 1 1 9 3 7 1 1 6 5 8 7 3 6 8 7 9 4 , , , , , , , , , , , 5 5 5 2 8 0 4 9 8 0 5 1 6 6 9 6 3 9 7 0 5 0 5 6 3 9 3 9 4 5 8 3 8 7 7 7 7 7 7 7 7 7 7 7 , , , , , , , , , , , 6 8 6 7 7 6 8 9 6 6 9 1 5 3 2 6 4 0 2 2 7 8 8 1 4 6 6 7 9 5 3 2 3 9 9 9 9 9 8 8 8 , , , , , , , , 3 3 2 6 0 8 9 2 2 1 1 0 3 5 3 6 1 9 0 7 7 4 2 8 1 Items drawn on banks m other districts (columns 5 and 6) also items handled by both parent bank and branches (columns 7 and 8) represent duplications of items shown in columns 1 to 4. Such items are counted both by the Federal Reserve Bank or branch at which they are deposited and also by the Federal Reserve Bank or branch to which they are forwarded for ultimate collection. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
SEPTEMBER 1, 1918. FEDERAL BESERVE BULLETIN. 895 DISCOUNT OPERATIONS OF THE FEDERAL RESERVE BANKS. Discount operations of the Federal Reserve ment securities, totaled $696,871,352, as against Banks during the month of July aggregated $439,252,253 the month before and $399,- $3,343,456,443, compared with $3,161,920,534 091,341 for May of the current year. for June and 8460,733,354 for July, 1917, the By far the larger share of the paper dismonth following the consummation of the counted during the month, viz, 91 per cent, first Liberty loan. Of the total bills discounted was 15-day paper, i. e., paper maturing within during the month, the share of war paper, i. e., 15 days from date of discount with the Federal member banks' notes, also customers7 paper Reserve Banks. For the New York bank this secured by United States war obligations, was percentage, because of the preponderating 73.9 per cent, compared with 82.9 per cent amount of members7 collateral notes handled, the month before and 84.8 per cent for May of is as high as 97 per cent. Of the $25,263,873 of the present year. About 58 per cent of the 6-month agricultural and live-stock paper distotal paper and over 64 per cent of the war counted during the month, Kansas City is paper discounted by all the Federal Reserve credited with over 33 per cent and the Minne Banks during the month, as against 70 and 80 apolis and Dallas banks combined with about per cent during June, fall to the share of the 30 per cent, Philadelphia, San Francisco, and New York bank. The largest increases in Chicago also reporting substantial amounts of discount operations for the month, as com- this class of paper. pared with June, mainly under the head of war Average maturities of paper discounted at paper, are shown for the Boston, Cleveland, all the banks, except New York, Minneapolis, Chicago, and San Francisco banks. and Dallas, were shorter than for June, though Discounts of member banks7 notes secured for the system as a whole the average maturityby eligible paper totaled $162,910,586, com- works out at 12.85 days as against 10.09 days pared with $85,607,976 the month before, the in June, largely because of the longer average Federal Reserve Banks at Chicago and Kansas maturity of the paper discounted by the New City accounting for over 90 per cent of York bank. Average rates for all the banks, the total. Trade acceptances discounted by except Kansas City and Dallas, work out at a all the banks during the month totaled lower level than the month before, the average $14,275,040, of which $13,712,264 represented July ra;e for all the banks being 4.37 per cent, transactions in the domestic trade and compared with 4.42 per cenb the month before. $562,776 transactions in the foreign trade. Minneapolis, Dallas, and Kansas City, in the Over 29 per cent of the discounted domestic order named, show the longest average maturitrade acceptances are reported by the New ties of paper discounted during the month, also York bank and about 17.1 per cent by the the highest average rates, Kansas City with Cleveland bank, while Minneapolis, Atlanta, 5.24 per cent showing the highest average rate, and Richmond each show over $1,000,000 each and Minneapolis with 42.51 days showing the of this class of paper. The totals above given longest average maturity of the paper disj are exclusive of §4,999,753 of foreign trade counted during the month. acceptances and of $582,241 of domestic trade On the last Friday of the month the bank j acceptances purchased during the month in held a total of $1,302,151,000 of discounted open market by the New York, Cleveland, and paper, as against $869,175,000 held on the last San Francisco banks. Friday in June and $138,459,000 on the corre Other discounts, chiefly unsecured paper, sponding date in 1917. Of the total discounts also paper supported by other than Govern- on hand the share of war paper was 52.2 per Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
896 FEDERAL RESERVE BULLETIN. SEPTEMBER 1,1918, cent, compared with 48.8 about the end of June end of July. The number of member banks and 62.8 per cent about the end of May. At accomm.odat.id during the month'was 3,462, or the New York bank this share was 68.7 per cent, about .42 per cent of the total membership at at the Boston bank as high as 70 per cent, and the close of the month. In the following exat the Philadelphia bank over 62 per cent. hibit are given the number of member banks in Discounted trade acceptances on hand totaled each Federal Reserve district at the end of $17,379,000, of which over 1.6 millions repre- July and the number of discoun ing members sents the holdings of discounted foreign trade for the month under review. acceptances. Cleveland leads in the amount of domestic rade acceptances held, followed by Number of Number of member banks dis- New York and Boston. Agricultural paper- Federal reserve district. banks on counting July 31. during holdings totaled $36,456,000, or 2.8 per cent of July. the total discounted paper on hand, while live- Boston -: 418 182 stock paper totaled $61,618,000 (or 4.7 per cent New York 695 323 Philadelphia... 651 215 of the total, of which about 56 per cent is re- Cleveland 787 166 Richmond 550 268 ported by the Kansas City bank. Atlanta 414 214 Chicago 1,190 543 As the result of further accession to member- M St. i n L n o e u a i p s olis.... 8 49 2 4 8 3 1 9 3 9 9 ship of State banks and trust companies the D K a a l n la sa s s City.... 9 7 8 0 4 4 3 42 2 4 7 number of member banks shows an increase San Francisco.. 610 232 from 8,218 a the end of June to 8,323 at the Total. 8,323 3,462 Bills discounted during the month of July, 1918, distributed by classes. Member banks' col- Customers' lateral notes. paper secured by Liberty Secured by b U on n d it s e d or b L o i n b d e s r t o y r a a T c n r c c a e e d p s e t . - d A is l c l o o u th n e ts r . Total. States cer- United Otherwise tificates of States cer- secured. indebted- tificates of ness. indebted- Boston §16,676,168 898,378,346 $8,144,000 i $551,835 319,966,536 3143,716,885 New York 32.148.364 1,559,668,587 2 4,540,077 338,684,760 1,935,041,788 Philadelphia.. 9,801,345 67,222,418 513,811 56,928,502 134,466,076 Cleveland 7,147,374 82,587,846 52,000 2,352,044 42,689,663 134,828,927 Richmond 2,945,200 140,085,437 1,215,750 1,108,428 17,829,429 163,184,244 Atlanta 125,698 36,950,919 435,000 1,110,360 24,201,370 62,823,347 Chicago 4,895,398 198,153,410 126,593,975 868,740 48,814,937 379,326,460 St. Louis 846,510 68,299,067 110,000 1,354,693 34,425,617 105,035,887 Minneapolis.. 1,416,412 26,689,337 3,520,568 216,619 27,675,396 59,548,332 Kansas City.. 228,241 37,389.208 21,441,473 866,641 23,206,275 83,131,838 Dallas 612,202 33,053,750 1,222,820 36,585 16,948,929 51,874,286 San Francisco 781,328 43,296,900 175,000 725,207 45,499,938 90,478,373 Total... 77,624,240 J2,391,775,225 162,910,586 14,275,040 696,871,352 3,313,45(5,443 i Includes 825,994 in the foreign trade. 2 Includes $536,782 in the foreign trade. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
SEPTEMBEK 1,1918, FEDERAL RESERVE BULLETIN. 897 Amounts of discounted payer, including member banks1 collateral notes, held by each Federal Reserve Bank on the last Friday in July, 1918, distributed by classes. [In thousands of! dollars, i. c, 000 omitted.] Member banks' col- Customers' lateral notes— paper secured by- Banks. A p t g a u r p r i a c e u l r. l- p L s a t i o p v c e e k r - . t S i i b n f L t U i a o d c i t n n e b a e d b i e t s t e s t r e c e s t d y o e d o r r - - f S t S i b e L f t U o c i a c i u n t n b a e r d i e t e s t e s r e d c s t d o y e b o r r y - f se O w c t u h is r e e e r d - . a T a c n r c c a e e d p s e t . - A c l o l d u o is n t - h ts e . r Total. indebtedness. Boston $30 §34,765 i $1,584 $25,042 $91,174 New York | 81 210,933 M,364 119,846 396,395 Philadelphia j 116 24, 26,384 647 30,039 81,391 Cleveland I 170 $2,379 9, 36,023 4,098 46,474 " 99,025 Richmond ! 4,346 5 7, 22,916 $367 1,267 23,489 59,810 Atlanta I 2,317 928 I 15,996 420 953 17,542 38,262 Chicago I 6,519 91 92,022 75,258 1,176 55,483 238,441 St. Louis ! 291 1,950 29,134 56 1,059 26,165 59,666 Minneapolis i 5,077 8,812 8,992 1,167 360 29,681 55,690 Kansas City j 3,353 34,266 1, 17,163 10,511 844 11,790 78,255 Dallas 7,162 6,990 15,119 636 7,639 38,216 San^Francisco 7,075 6,197 18,332 175 1,027 31,815 65,826 Total | 36,456 145,324 527,779 88,590 17,379 425,005 1,302,151 Per cent - ; 2.8 11.2 41.0 6.8 1.3 32.2 100.00 1 Includes $25,994 in the foreign trade. 2 Includes 81,577,740 in the foreign trade. Bills discounted by each Federal Reserve BavJc during July, 1918, distributed by rates of discount; also average maturity and rates of bills discounted by each bank during the month. 4 per cent. 4J per cent. 4\ per cent. 4f per cent. Amount. Discount. Amount. Discount. Amount. Discount. Amount. Discount. "Boston §114,211,102 $100,899 814,518,183 S85,401 $523,241 S2,596 $14,421,992 £104,031 New Y ork 1,879,818.368 1,091,966 31,662,977 192,819 1,830,899 12,601 21,721,134 179,761 Philadelphia 119,771)175 157,225 9,469,705 79,470 459,057 2,917 4,750,491 26,130 Cleveland 81,118,536 111,339 39,177,059 58,718 1,729.721 7,338 12,757)867 81,051 Richmond 143.171,080 124,808 213)798 287 4,105,172 11,534 Atlanta 5:4,322.900 85,621 120,418 926 822,026 4,279 6,956,529 52,334 Chicago . 337,939)633 535,347 4.441,243 35,136 920,626 4,912 26,304,487 172,638 St. Louis 83,935,154 129,065 '640,448 4,627 1,228,785 6,722 19,049,210 156,105 31,008,020 48,768 1,322,331 9,800 228,246 1,687 8,460,]98 46,797 Kansas City.. 37,558,292 58,801 22,551,719 41,113 769,294 4,389 D&llas-. 31,678,850 53,396 555,497 4,504 175,115 1,152 6,645,994 37,268 San Francisco 60,156,325 91,729 779,323 7,147 690,075 4,806 26,087,228 194,303 Total. 2,796,960,063 2,405,355 283,416,556 662,157 31,373,308 90,410 152,029,596 1,066,341 5 per cent. 5£ per cent. 5£ per cent. Total. Average Average maturity rate in days. (por cent).* Amount. Discount Amount. Discount. Amount. Ti iscount. Amount. Discount. BosioYi 342,367 $615 i $143,716,885 8293,512 19.72 4.32 Now York 8,410 . 692 jl, 935,041,788 1,477,839 6.77 4.11 Philadelphia 15,648 272 i 134,466,076 266,014 17.19 4.14 Cleveland , ... . $45,744 I 134,828,927 259,335 16.16 4.29 Richmond. I 15,143,223 129,911 550,971 9,252 163,184,244 275,792 13.15 4.63 Atlanta.. 587,988 9,974 813,486 264 62,823,347 153,398 20.42 4.30 Chicago 7,450,782 62,188 2,269,689 46,639 379,326,460 856,860 19.02 4.27 St. Louis. 182,290 3,347 105,035,887 299,866 23.42 4.39 Minneapolis... 14,512,559 157,245 4,016,978 77,822 59,548,332 342,119 42.51 4.86 Kansas City... 13,802,712 124,750 8,449,821 164,692 83,131,838 393,745 33.61 5.24 Dallas "6," 299*490" "70," 059" 3,519,340 65,850 51,874,286 232,229 34.05 4.73 San Francisco. 2,765,422 46,694 90,478,373 344,679 29.87 4.59 Total., 44,060,467 | 430,956 17,918,767 200,741 17,697,686 339,458 3,343,456,443 5,195,418 12.85 2 4.37 1 Boston and New York calculated on a 365-day basis; all other Federal Reserve Banks on 360-day basis. a Average discount rate on all paper discounted Works out at 4.35 per centif calculated on a 360-day basis, and at 4.41 if calculated on a uniform 365-day basis. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
898 FEDERAL BESERVE BULLETIN. SEPTEMBER 1, 191S, Acceptances bought in open market and held by Federal Reserve Banks as per schedules on file with the Federal Reserve Board .v,y or as reported by the Federal Reserve Banks on dates specified, distributed by classes of accepting institutions. Bankers' acceptances, Trade Date. M ba e n m k b s e . r N co o m n t m r p u a e s n m t ie b s e . r N St o a n te m b e a m n b k e s r . P b r a i n v k a s te . b F r b a o a n a r n e n c d i h k g e n s Total. a b c m c o e u o a p g p r t k e h a n n e t t c i . e n s acce T p o ta ta n l ces. agencies. 19.15. Feb. 22. $93,000 593,000 893,000 Apr. 5.. 3,653,000 S7,820,000 810,000 $110,000 11,593,000 11,593,000 July 3.. 4,342,000 5,267,000 161,000 9,770,000 9,770,000 Oct. 4.. 9,000,000 4,898,000 'm'ooo' 343,000 14,373.000 14,373,000 1916. Jan. 3.. 15,494,000 7,160,000 362,000 822,000 23,838,000 23,838,000 Apr. 3. 21,000,000 13,572,000 473,000 3,262,000 38,808,000 8722,000 39,030,000 July 3. 32,989,000 IS,921,000 471,000 11,830,000 64,211,000 3,422,000 67.638,000 Oct. 2. 37,798; 000 2i;782,000 712,000 9,944,000 70,236.000 2,306.000 72;542,000 1917. Jan. 1 66,803,000 34,625,000 1,502,000 18,224,000 121,154.000 4,585,000 125,739,000 Apr. 2 43,979,000 20,328,000 689,000 16,830,000 $200,000 82,026', 000 1,144,000 83,170,000 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 Sept. 29... 131.997,000 14,987,000 2,193,000 21,708,000 2,286,000 173,171,000 6;942,000 380,113,000 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 1918. Jan. 31.. 240,259,000 5,547,000 3,522,000 22,099,000 6,947,000 278,374,000 6,363,000 284,737,000 Feb. 28. 252,747,000 1,648,000 3,856,000 28,419,000 7,097,000 293,767,000 5,456,000 299,223,000 Mar. 31. 275,144,000 1,360,000 1,884,000 31,779,000 8,562,000 318,729,000 8,015,000 326,744,000 Apr. 30. 248,390,000 054,000 2,907,000 25,921,000 10,304,000 288,176,000 9,279,000 297,455,000 May 31. 207,917,000 1,330,000 5,168,000 26,217,000 8,398,000 249,030,000 8,276,000 257,308,000 June 29. 173,698,000 1,992,000 459,000 21,478,000 12,315,000 209,942,000 7.418,000 217,360,000 July 31. 154,614,000 1,129,000 7,302,000 18,082,000 8,975,000 190,102.000 7; 781,000 197,883,000 Acceptances bought in open market and held by each Federal Reserve Bank on July 31,1918, distributed by classes of accepting institutions. [In thousands of dollars, i. e., 000 omitted.] — - ... .. . .... M ba em nk b s e . r m p t N c a e r o m n u o m i s n b e t - - s e . r m b S N e a m t n o a k n t b e s - e . r P b r a i n v k a s te . b a F g r b a o e a n a r n n e n c c d i h k i g e e n s s . Total. D T o r m ad e e st i a c c o . c p e e F p n o t r a m e n i c a g e r n k s . e b t o . u T g o h ta t l i . n a a T c n c o c e t e p a s l t . - Boston..-. . . .. 19,695 52,406 $371 $22,472 $22,472 New York 75,013 S777 S6,399 12,988 7,226 102,403 51,872 $582 $2,454 104,857 Philadelphia 12,509 423 542 657 14,131 14,131 15,003 250* 50 1,102 379 16,784 122 68 190 16,974 Richmond 5,114 5,114 5,114 Atlanta 3,398 3 398 3,398 Chicago 8,179 18 8,197 8,197 St. Louis 2 325 23 2 348 2,348 Minneapolis 345 345 345 Kansas City 129 i 129 129 Dallas 1.120 i 1,120 1,120 11,784 102 | 4i2 1,021 342 13,661 5,137 5,137 18,798 Total 154,614 1,129 j 7,302 18,082 8,975 190,102 1,994 5,787 7,781 197,883 i Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
SEPTEMBER 1,1918. FEDEEAL EESEEVE BULLETIN. 899 Amounts of bills discounted and acceptances and warrants bought by each Federal Reserve Bank during July, 1918, distributed by maturities. 15-day maturities. 30-day maturities. Discounts. Acceptances. Warrants, i Total. j Discounts. Acceptances. Warrants. Total. Boston $114,197,595 $872, 5115,070,329 $6,222,691 S3,143,522 $9,366,213 New York 1,878,772,433 2.679, ;], 881,451,629 9,485,535 12,960,777 22,446,312 Philadelphia 120,460,682 '109, 120,569,805 3,741,774 451,527 4,193,301 Cleveland 120,671,820 282, 120,954.720 3,016,918 848,347 3,865,265 Richmond 144,178,737 247, I 144,426,'437 2,209,974 1,691,111 3,901,085 Atlanta 54,273,150 50, 54,323,150 1,460,313 214,148 1,674,461 Chicago 342,122,404 342,122,404 5,195,146 1,088,717 6,283,863 St.Louis 83,789,029 25,000 83,814,029 2,726,155 70,000 2,796,155 Minneapolis ~" 947,711 30,947,711 2,328,383 2,328,383 Kansas City 59,948,477 59,948,477 1,666,414 I 1,666,414 Dallas 34,656,687 100, 34,756,687 1,767,446 ! 250,000 2,017,446 San Francisco 60,329.248 2,129, 62,459,153 4,827,698 1,541,023 6,368,721 Total 3,044,347,973 6,496,558 .|3,050,844,531 44,648,447 22,259,172 67,907,619 Per cent .! 88.0 1.9 60-day maturities. 90-day maturites. Discounts. Acceptances. Warrants. Total. N Bo ew st o Y n ork j 8 2 1 0 2 , , 7 8 5 6 0 9 , , 2 9 5 0 6 5 2 5 0 2 , , 7 89 5 1 5 , , 4 2 3 2 4 1 j j ... i | 31 4 5 1 , , 7 5 6 0 1 5 , , 3 4 3 7 9 7 $ 2 1 5 0 , , 9 3 0 0 5 9 , ,3 1 2 5 7 4 2 8 6 5 , , 4 0 6 2 7 8, , 9 5 1 3 8 5 $50,521 S 5 1 2 5 , , 4 3 2 3 3 8 , ; 2 2 1 4 0 5 Philadelphia j 2,614,424 2,061,"'" ' 4,675,664 5,024,298 3,047,198 8,071,496 Cleveland i 5,570,713 4,186, 9,756,726 5,523,732 5/635,669 11,159,401 Richmond i 6,417,812 2,196, 8,614,629 9,824,494 1,281,000 11,105,494 Atlanta ! 3,079,607 956, 4,036,560 3.411,553 557,612 3,969,165 Chicago ! 14,057,551 1,093, 15,150,651 loj588,319 6,258,175 21,846,494 St. Louis | 6,785,940 227, 7,013,045 11,552.473 699,285 12,251,758 Minneapolis | 6,732,978 6,732,978 15,518,349 130,000 15,643,349 Kansas City.. : 5,733,702 52, 5,786,239 7; 334,559 I 76,311 7,410,870 Dallas | 4,835,067 20/ 4,855,067 7,014,261 7,014,261 San Francisco i 10,338,230 4,209, 12,403,446 5,248,875 17,652,321 Total 99,788,185 9,650,303 j 139,436, 129,409,965 54,440,578 50,521 183,901,064 Per cent 4.0 T 5.3 Over 90-day maturities. Total. Per cent. 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. Dis- A an cc c e e p s. t- r • a W n a t r s - . Total. Boston §117,367 31,250 I 6148,617 8143,716,885 $11,967,858 8155,684,743 92.3 7.7 100 New York 128,410 1,935,041,788 62,862,729 850,521 1,997; 955,038 96.9 3.1 100 Philadelphia 2,624,898 134,466,076 5,748.048 140,214,124 95.9 4.1 100 Cleveland 45,744 200,000 i 245,744 134,828, 927 11,152', 929 145,981,856 92.4 7.6 100 Richmond 553,227 3,000 ' 556,227 163,184,244 5,169.628 168,653,872 96.8 3.2 100 Atlanta 598,724 146,371 iS16,600 761,695 62,823,347 1,9251064 16,600 64,765.011 97.0 3.0 100 Chicago 2,363.040 1,090,273 i 3,453,313 379,326,460 9.530.265 388,856,725 97.5 2.5 100 St. Louis I82',290 182,290 105,035,887 lj0211390 ; 106,057,277 99.0 1.0 100 Minneapolis 4,020,911 4,020,911 59,548,332 130,000 59,678,332 99.8 .2 100 Kansas City 8,448.686 8,448,686 83,131,838 128,848 83,260,6S6 99.8 .2 100 Dallas 3,600;825 3,GOO,825 51,874,286 370.000 52,244,286 99.3 .7 100 San Francisco 2,579,751 137,199 ; 2,716,950 90,478,373 13,266;885 103,745,258 87.2 12.8 100 Total 25,263,873 1,608,093 ! 16,600 26,888,566 3,343,456,443 123,573,644 67,121 3,467,097,208 Percent 100.0 96.4 100 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
900 FEDERAL RESERVE BULLETIN". SEPTEMBER 1,1918. Maturities of discounts, acceptances, and municipal warrants held by each Federal Reserve Bank on Friday, July 26, 1918. [In thousands of dollars; i. e., 000 omitted.] 1 to 15 days. 16 to 30 days. 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 a o c n u c c g e e p h s t t - . M wa u r n r i a c n ip ts a . l Total. Boston $46,499 S9,092 §55,591 $20,185 83,046 $23,231 New York 314,462 7,027 321,489 39,241 37,976 77,217 Philadelphia.. 62,498 3,008 65,506 8,548 3,956 12,504 Cleveland 02,107 2,103 64,210 13,574 2,569 16,143 Richmond 34,201 831 35,032 6,238 670 6,908 Atlanta 27,570 556 28,130 2,758 725 3,483 Chicago 173,362 3,465 176,827 26,733 3,735 30,468 M St. i n L n o e u a i p s olis... 4 1 1 5 , , 1 46 2 4 8 6 1 0 2 2 0 4 1 1 5 , , 7 58 3 4 0 3 5, , 1 6 9 4 9 7 1;2 6 3 0 1 4 5 , ,2 8 5 7 9 8 Kansas City... 30,230 50 30,280 6,033 6,033 Dallas 17,853 800 18,653 1,753 500 2,253 San Francisco. 27,260 3,717 30,977 8,627 3,225 11,852 Total. 852,634 31,375 884,009 142,536 57,693 200,229 Percent 31 to 60 days. 61 to 90 days. B co il u l n s te di d s- . | | b ^ ^ e h a s t c . - 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 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. Boston $16,344 38,405 $24,749 88,116 83,754 $11.870 New York 26,784 46,618 $51 73,453 15,907 12,412 28,319 Philadelphia.. 6,269 4,681 10,950 4,053 1,785 5,838 Cleveland 18,054 7,518 26,172 4,640 3,580 8,226 Richmond 11,055 1,568 13,223 6,541 1,049 7,590 Atlanta 4,050 i 1,795 5,845 2,964 487 SI 3,452 Chicago 17,640 i 4,523 22,183 16,291 5,561 21,852 St. Louis 7,717 I 171 7,888 5,975 369 8,344 Minneapolis... 15,244 | 120 15,364 11,696 110 11,806 Kansas City... 12,365 ! 3 12,368 14,706 76 14,782 Dallas 4,592 I 20 4,612 8,085 8,085 San Francisco. 16,800 i 7,880 24,686 3,713 13,281 Total. 158,114 51 241,473 108,542 32,902 T 141,445 Percent Over 90 days. Total. Percentages. B co il u ls n t d e i d s . - b A a o c n u c c g e e p h s t t - . p M r a a l u n n w t i s c a . i r - - Total. B co il u ls n t d e i d s . - A b a o c n u c c g e e p h s t t - . p M r a a l u n n w t i s c a . i r - - Total. B co i u ll n s t e d d i / s 1 - . b A a o c n u c c g e e p h s t t - . p M r a a l u n w n t i a s c . r i - - Total. Boston 30 30 91, 24,297 115,471 79.0 21.0 100 New York 1 1 396, 104,033 51 500,479 79.2 20.8 100 Philadelphia 23 23 81 13,430 94,821 85.8 14.2 100 Cleveland 50 50 99, 15,776 114,801 86.3 13.7 100 Richmond 1,175 1,175 59, 4,118 63,928 93.6 6.4 100 Atlanta 920 10 930 38, 3,563 15 41,840 91.5 8.5 100 Chicago 4,415 4,415 238, 17,284 255,725 93 2 6.8 100 St.Louis 1,199 1,199 59, 2,373 62,039 96! 2 3.8 100 Minneapolis 8,087 8,087 55, 410 56,100 99.3 .7 100 Kansas City 14,921 14,921 78, 129 78,384 99.8 .2 100 Dallas 5,933 5,933 38, 1,320 39,536 96.7 3.3 100 San Francisco 3,571 3,571 65, 18,541 84,367 78.0 22.0 100 . Total 40,325 10 40,335 1,302,151 205,274 1,507,491 1,078.6 121.4 Per cent 86.4 13.6 100 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
SEPTBMBBE 1,1918. FEDERAL RESERVE BULLETIN. 901 Total investment operations of each Federal Reserve Bank during the months of July, 1918 and 1917. Bills Bills bought in open market. Municipal warrants. discounted for members i and Federal Trade • R B e a s n e k rv s e . ac B ce a p n t k a e n r c s e ' s. a a c n c c e e p s t . - j : Total, City. State. ot A h l e l r. Total. i Boston $143,716,885 $11,967,858 $11,967,858 New York 1,935,041,788 60,480,362 VS2,382,367" 62,862,729 "*So6,'52i" $50,521 Philadelphia 134,466,076 5,748,048 5,748,048 Cleveland 134,828,927 li;112,929 M0,000 11,152,929 Richmond 183,184,244 5,469,628 5,469 628 Atlanta 62,823,347 1,925,064 1,925,064 600 $16,000 16,600 Chicago 379,326.460 9,530,265 9,530 265 St. Louis 105,035; 887 1,021,390 1,021,300 Minneapolis 59,548,332 130.000 130,000 Kansas City 83,131,838 128; 848 128,848 Dallas 51,874,286 370,000 370,000 San Francisco 90,478,373 10,107,258 23,159,627 13,266,885 Total, July, 1918 3,343,456,443 117,991,650 5,581,994 123,573,644 51,121 16,000 67,121 Total, July, 1917 460,733,354 63,629,153 3,234,912 66,864,065 100,000 100,000 United States securities. Total investment operations. United per 2 cent. per 3 cent. per cent. per 4 cent. per cent. T 1 r n e - o y a t e s e u a s r . ry c o e f r S t i i t n f a i d t c e e a s b te t s - Total. July, 1918. July, 1917.8 edness. Boston $155,684,743 $45,833,930 New York $50,000 -919,366,000 $19,416,000 2,017,371,038. 288,878,639 Philadelphia 55,000 55,000 140,269,124 33,648,283 Cleveland §200 490,000 490,200 146,472,056 17,613,760 Richmond 500 225,000 225,500 168,879,372 38,483,310 Atlanta $50,000 41,000 17,500 108,500 64,873,511 4,764,512 Chicago 388,856,725 56,624,084 St. Louis . . . 106,057,277 16,724,850 Minneapolis 1,364,000 1,364,000 61,042,332 8,821,257 Kansas City . . 122,500 122,500 83,383,186 19,411,691 Dallas 52.244,286 6,800,881 San Francisco 1,666,666 157,000 1,157,000 104; 902,258 9,828,872 Total, July, 1918 50,000 1,050,000 41,700 21,797,000 22,938,700 3,490,035,908 Total, July, 1917 67 000ii8,"299,"656" $1,370,000 5 19,736,650 547,434,069 1 Includes $582,241 in the domestic trade. s In the foreign trade. 3 Exclusive of purchases of United States certificates of indebtedness. United States securities held by each Federal Reserve Bank on July 31, distributed by maturities. Other United States securities, including 1-year Treasury notes and United States bonds with circulation Treasury certificates of indebtedness, available as security for privilege. Federal Reserve Bank notes under silver act of Apr. 23,1918. 2 c o p n e s r o l c s e o n f t 1 2 P 9 p 3 a 6 e n o - r a 1 f c m 9 e 3 a n 8 s t . 3 l p o 1 e 9 a 1 r n 8 c . o e f nt 4 l p o 1 e 9 a 2 r n 5 c . o e f nt 3 b 1 c o p 9 o s n 1 e n i r 6 d o v - s n c e 1 e r o 7 - n f . t 3 T n r 1 p e o - e a y t r s e e c u a s e . r ry nt lo 3 1 c a 9 e p 6 n n 1 e . t o r f 31 L l - o 1 i p b 9 a e 4 n e r 7 r c . o t e y f nt 1 4 9 L l p 4 o i 2 e b a - r n e 1 c r 9 o t e 4 y f n 7 t . 4^i L J p o 1 i e b 9 a r 2 n e 8 c r . o e ty f nt t S i i n f U ta i d n c m t e e a e b s t s t e s t e c s . e d e d r o - - f Total. Boston $750 ! .1. $529,000 31.416,000 S383,850 $26,550 $181,260 §2,537,410 New York 50 $100,000 ! 1,255,400 1,'47ft, 000 201,550 5,300 $2,437,000 5,475.300 Philadelphia 400,000 549,200 1,181,000 11,850 786,250 50,500 2,978', 900 Cleveland 2,658,660 $678,200 414,800 1,660,000 1,966,650 385,350 50,000 7,813,660 Richmond 915,100 237,000 1,285,000 42,850 ""37," 750' 500 225,000 2,743,200 Atlanta 240,600 21,000 "I6J366" 965,000 13,000 490,400 4,650 16,500 1,761,450 Chicago 1,862,500 367,300 2,581,000 1,768,000 427,400 2,112,000 S400 83,050 9,201,650 St. Louis 100 1,080,000 1,153,300 321,000 2,554,400 Minneapolis 260 1,199,180 114,800 880,000 500 1,480 59,000 2,255,220 Kansas City 7,155,850 22,240 824,400 838,500 1,168,000 22,100 8,100 107,500 10,146,690 D Sa a n l la F s rancisco 2 2 , , 4 4 2 5 8 0 , , 7 9 5 0 0 0 281,500 1,666," 666' 1,233,000 1,0 9 0 0 0 1 , , 0 0 0 00 0 21,4 7 5 0 0 0 * 16/566' 11,950 "Il7,"666" 4 4 , , 8 5 7 7 9 8 , , 6 1 5 0 0 0 Total. 15,054,600 92<J, 4008,018,840 14,270, GOO6,526,300 14,365,000 900 2,664,000 1,448,300 585,190 3,062,500 56,925,730 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
902 FEDERAL RESERVE BULLETIN. SBPTHMBBB 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, July 26 to August 23, 1918. RESOURCES. [In thousands of dollars; i. e., 000 omitted.] San Boston. Y N o e r w k. d P el h p i h la i - a. C l l a e 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 i e s. - K C a i n t s y a . s Dallas. F ci r s a c n o - . Total. Gold, in vault and in transit: July 26 8,088 299,844 1,104 35,230 6,330 6,898 27,419 1,691 8,710 337 16,130 418,012 August 2 8,394 290,854 1,360 36,428 6,387 6,788 27,123 1,800 8,241 368 6,289 14,438 408,470 August 9 3,721 291,206 380 30,445 6,136 6,787 2,004 8,375 194 13,017 395,410 August 16 2,955 287,062 441 25,424 6,208 6,849 27,023 1,837 302 6,348 12,346 385,017 August 23 3,296 287,040 279 22,339 6,280 6,798 29,275 1,980 8,425 219 6,416 12,725 385,072 Gold settlement fund, Federal Reserve Board: July 26 38,787 253,326 49,728 46,791 19,248 19,616 50,477 22,261 16,341 37,438 13,153 31,611 598,777 August 2 45,776 294,005 48,377 42,313 13,716 16,632 61,754 29,689 6,584 28,948 7,149 29,196 623,119 August 9 69,066 243,463 52,357 52,518 14,446 16,835 51,899 34,134 9,704 30,633 7,741 23,558 606,354 August 16 69,964 172,134 63,970 53,079 25,178 20,083 64,632 29,421 13,885 39,098 12,108 36,531 600,083 August 23 79,697 103,553 48,481 67,788 27,830 19,251 81,046 34,032 11,383 30,201 7,299 42,499 553,060 Gold with foreign agencies: July 26 814 4,012 814 1,046 407 349 1,628 465 465 581 407 640 11,628 August 2 679 3,345 679 873 339 291 1,357 388 388 485 533 9,696 August 9 679 3,345 679 873 339 291 1,357 388 388 485 533 9,696 August 16 408 2,011 408 525 204 175 816 233 233 291 204 321 5,829 August 23 408 2,011 525 204 175 816 233 233 291 204 321 5,829 Gold with Federal Reserve agents: July 26 56,445 279,859 99,389 110,629 32,950 26,339 118,392 31,496 33,497 13,980 83,848 910,420 August 2 56,224 279,023 99,031 110,497 32,613 23,312 119,574 31,496 23,352 33,497 13,980 80,194 902,793 August 9 60,847 279,023 97,059 116,550 36,514 25,353 146,343 31,389 23,195 33,368 13,928 77,123 940,692 August 16 60,612 278,539 96,541 121,772 36,356 24,135 151,157 46,830 23,027 36,790 13,915 71,824 961,498 August 23 60,185 277,893 113,780 126,174 38,278 27,424 156,622 51,775 22,862 48,711 13,873 81,190 1,018,767 Gold redemption fund: July 26 3.165 14,825 3,500 965 305 2,271 3,556 2,402 2,039 1,085 1,250 35,363 August 2 3! 394 14,875 4,000 1,002 193 2,692 3,812 2,372 2,140 1,088 1,250 36,818 August 9 3,611 15,000 4,500 1,324 109 2,768 3,959 2,341 2,219 1,070 1,248 38,149 August 16 3,749 15,000 5,000 754 1,025 3,061 4,170 2,626 2,305 1,106 1,248 40,116 August 23 4,070 15,000 5,000 1,007 924 2,355 4,511 2,611 2,415 1,101 1,248 40,323 Total gold reserves: July 26 107,299 851.866 154,535 194,661 59,240 55,473 201,472 58,317 51,151 72,938 35,019 132,229 1,974,200 August 2 114,467 882', 102 153,447 191,113 53,248 48,715 213,620 65,725 40,705 64,386 29,007 124,361 jl,980,896 August 9 137,924 832,037 154,975 201,710 57,544 52,034 230,367 70,258 43,881 65,750 29,592 -1t 1-14 A, 20301 1 1-1, 9nf9\n0 ,3o0ni1 August 16 137,688 754,746 166,360 201,554 68,971 54,303 247,798 80,947 47,072 77,587 33,823 121,094 1,992,543 August 23 147,656 685,497 167,948 217,833 73,516 56,003 273,270 90,631 45,318 80,523 29,040 136,816 2,002,051 Legal-tender notes, silver, etc.: July 26 2,564 44,197 687 357 i 697 2,913 918 139 295 1,524 209 55,129 A Au u g g . u 9 st 2 2 2 , , 4 0 0 O 2 8 4 4 4 4 , , 3 9 0 4 8 8 5 5 5 5 0 0 419 ; 7 5 0 9 6 4 3 37 4 1 8 2 2 , , 3 09 9 0 6 4 6 8 5 0 0 1 15 8 1 2 3 34 3 1 8 1 1 , , 4 6 4 9 8 8 2 1 4 8 8 9 5 5 4 4 , , 0 2 2 2 2 2 Aug. 16 2,629 43,941 805 349 j 641 340 1,725 461 112 296 1,292 365 52,980 Aug. 23 2,344 43,231 730 373 I 802 434 1,872 607 106 402 1,182 185 52,215 Total cash reserves: 320 i ! July 26 109,863 880,063 155,222 195,018 59,937 56,102 204,385 59,235 51,290 73,233 36,543 132,438 2,029,529 Aug. 2 116,975 926,410 153,997 191,532 53,954 49,063 216,016 68,375 40,867 64,724 30,455 124,550 2,034,918 Aug. 9 140,326 878,985 155,525 202,059 58,138 52,405 232,457 70,736 44,032 j66,091 31,290 114,479 2,044,523 Aug. 16 140,317 798,687 167,165 201,927 69,612 54,643 249,523 81,408 47,784 77,883 35,115 121,459 2,045,523 Aug. 23 150,000 728,728 168,678 218', 153 74,318 56,437 274,142 91,238 45) 424 80,925 30,222 137,001 2,055,266 Bills discounted for j: members and Federal Reserve Banks: i July26. 91,174 396,395 81,391 99,025 59,810 38,262 238,441 55,690 j 78,255 38,216 1,302,151 Aug.2 84,470 309,158 82,981 94,938 63,275 42,153 237,785 58,886 59,781 77,592 29,941 69,959 1,270,919 Aug. 9 84.957 412,455 92,346 98,718 6-4,393 45,456 233,984 57,378 55,715 7"1 ,'8-1"0" 37,795 77,466 1,332,473 Aug. 16 64i 981 442,065 93,985 92,328 55,434 43,555 202,564 48,655 57,760 66,394 39,556 78,091 1,285,368 Aug. 23 67,414 552,409 85,183 82.512 56,567 46,965 209,629 64,288 42,917 75,725 1,393,795 Bills bought in open market: July 26 24,297 104,033 13,430 15,776 4,118 3,563 17,284 2,373 410 129 1,320 18,541 205,274 Aug.2 20,636 116,722 14,026 17,112 6,021 3,263 8,583 2,347 345 159 1,120 18,851 209,185 Aug.9 18,938 113,106 11,684 19,112 7,072 3,489 9,549 2,721 129 971 21,203 208,557 Aug. 16 21,616 112,692 11,326 21,960 3,361 13,180 2,055 580 129 470 19,847 212,204 Aug. 23 26,440 125,276 11,035 21,116 5,588 3,122 14,714 1.925 435 129 634 21,117 236,526 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
SEPTEMBER 1,1918. FEDERAL RESERVE BULLETIN. 903 Resources and liabilities of each Federal Reserve Bank and of the Federal Reserve system at close of business on Fridays, July 26 to August 28, 1918—Continued. RESOURCES—Continued. [In thousands of dollars ; i. e., 000 omitted.] j San I Boston. Y N o e r w k. d P el h p i h la i - a . j 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 . - Dallas. F ci r s a c n o - . Total. United States Gov- I ernment long-term | securities: ! July 26 ; 1,122 1,557 1,747 6,704 1,233 771 7,090 2,233 1,317 8,876 3,979 3,461 40,090 Aug. 2 | 1,122 1,456 1,347 5,999 1,233 730 4,509 2,233 1,297 8,871 3,979 3,461 36,237 Aug.9 ! 1,121 1,455 1,347 5,749 1,233 711 4,508 1,153 1,343 8,871 3,979 3,461 Aug. 16 ! 946 1,455 1,317 3,120 1,233 711 4,508 1,153 343 8,871 4,349 3,461 31,497 Aug. 23 | 942 1,453 1,348 2,560 1,233 4,509 1,153 122 8,871 4,347 3,481 30,624 United States Gov- ! ernment short-term | securities: i July 26 i 1,416 3,548 1,232 1,690 1,510 983 2,112 321 946 1,259 ! 901 1,004 16,922 Aug.2 i 1,416 4,058 1,232 1,730 1,511 982 2,112 321 906 1,277 I 901 1,127 17,573 Aug.9 ! 1,416 3,583 1,212 1,730 1,511 992 2,112 321 924 1,304 ! 901 1,398 17,404 Aug. 16 1,416 18,733 1,221 1,715 1,510 991 2,112 321 924 1,304 ! 901 1,398 32,546 Aug. 23 ! 1,416 10,158 1,210 1,695 1,510 991 2,112 321 1,239 i 901 1,000 23,479 All other earning as- j sets: ; | July 26 !. 15 103 Aug.2 |. 21 101 Aug. 9 !. 26 102 Aug. 13 ; 51 31 82 Aug. 23 j. 62 62 Total earning assets: : July 26 | 118.009 505,584 97,800 123,195 66,671 43,594 264,927 64,593 58,363 88,519 44,453 88,832 1,564,540 Aug.2 | 107; 644 491,445 99,586 119,779 72,040 47,149 252,989 63,787 62,329 87,899 ! 35,970 93,398 1,534,015 Aug.9 ' 106,432 530,650 106,589 125,309 74,209 50,674 250.153 61,573 58,565 82,114 i 43,871 103,528 1,593,467 Aug. 16 | 88.959 574,996 107,879 119,123 63,165 48,649 222,364 52,184 59,607 76,698 ! 45,276 102,797 1,561,697 Aug. 23... | 96;212 98,776 112,878 64,898 51,765 230,964 51,096 65,771 72,72S | 48,799 101,303 1,684,486 Uncollected items j (deduct from gross ! deposits): July 26 j 33,930 114,144 64,902 50,957 38,457 28,645 83,002 34,032 11,661 52,420 13,269 32,973 558,392 Aug.2 ; 49,170 109,095 55,469 44,593 38,363 25,951 76,462 35,212 13,008 42,236 17,875 24,124 531,558 Aug.9 ...! 37,741 142; 190 55,674 45,332 42,804 25,707 80,976 40,340 22,049 53,621 12,802 25,522 584,758 Aug. 16 ! 53,066 147,501 60,224 52,561 54,150 27,059 82,106 39.707 11,688 49,194 15,511 30,750 623,495 Aug. 23 j 40,933 145,515 71,341 47,742 38,232 27,562 82,364 3^839 10,783 50,523 16,536 31,613 601,983 5 per cent rcdemp- • tion fund against i Federal Reserve ! Bank notos: j July 26 , 94 372 137 84 701 Aug.2 94 167 137 84 496 Aug. 9 100 4.00 137 84 735 Aug. 16 34 ! 192 400 137 84 866 Aug. 23 74 ! 50 200 394 137 84 958 All other resources: July 26 780 3,080 • 1,264 572 i 1,383 1,514 514 236 357 524 1,574 12,441 Aug. 2 752 1,756 ' 1,240 ! 573 [ 939 1,606 526 234 369 699 1,165 10,551 Aug.9 752 1,816 • 1,244 632 ! 1.960 704 1,258 536 227 379 648 1,224 11,410 Aug. 16 767 1,888 1,217 613 ! '649 723 1,361 553 216 871 647 1,298 10,803 Aug. 23 771 1,856 ; 1,623 677 ! 779 749 1,160 552 209 654 1,356 11,294 Total resources: i Jl 262,582 1,518,851 319,188 369,742 I 166,448 129,018 553,922 158,374 i 121,550 214,901 255,901 4,165,403 Aug.2 274,541 1,528,706 310,292 356,477 ! 165,296 122,809 547,167 165,900 ! 116,438 195,395 85,136 243,321 14,111,538 Aug.9.. 285,251 1,551,671 319,032 373,332 J 177,111 129,504 564,944 173,185 124,873 202,605 88,548 244,837 14,234,893 Aug. 10 283,109 1,523,106 336,4S5 374,224 I 187,576 131,093 555,546 173,852 I 119,273 205,046 96,686 256,388 14,242,384 Aug. 23 287,916 1,565,469 340,468 379,450 i 178,227 136,532 588,830 181,725 i 122,187 205,478 96,348 271,357 4,353,987 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
904 FEDERAL RESERVE BULLETIN. SEPTEMBER 1,1918. Resources and liabilities of each Federal Reserve Bank and of the Federal Reserve system at close of business on Fridays, July 26 to August 23, 1918—Continued. LIABILITIES. [In thousands of dollars; i. 9., 000 omitted.] Boston. Y N o e r w k. d P el h p i h la i - a. C l l a e 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 t s y a . s Dallas. F c S i r s a a c n n o - . Total. Capital paid in: July26 6,474 19,967 8,610 3,917 3,117 9,929 3,604 2,846 3,542 3,001 4,495 76,441 Aug.2 6,474 19,974 6,940 8,618 3,917 3,117 9,940 3,622 2,849 3,542 3,027 4,498 76,518 Aug.9 6,474 19,989 7,150 8,693 3,920 3,119 9,966 3,640 2,849 3,545 3,032 4,499 76,876 Aug. 16 6,474 19,999 7,151 8,697 3,921 3,114 10,008 3,640 2,854 3,545 3,045 4,512 76,960 Aug. 23 6.492 20,017 7,151 8,703 3,921 3,114 10,693 3,687 2,864 3,545 3,050 4,513 77,750 Surplus: July 26 75 649 116 40 216 1,134 Aug.2 75 649 116 40 216 1,134 Aug.9 75 649 116 40 216 38 1,134 Aug. 16 75 649 116 40 216 38 1,134 Aug. 23 75 649 116 40 216 38 1,134 Government deposits: July 26 15,178 7,539 17,783 20,956 11,156 14,246 38,782 16,756 15,347 30,035 16,963 28,299 233,040 Aug.2 15,428 26,904 6,235 23,791 3,808 6,904 18,674 12,195 10,183 14,886 8,096 14,132 161,236 Aug.9 19,815 25,595 11,506 22,238 7,851 6,761 35,082 6; 966 8,404 13,655 9,954 12,151 179,978 Aug. 16 9,166 7,524 3,974 12,183 3,576 8,143 1,814 9,909 5,900 7,722 13,502 12,142 95,555 Aug. 23 21,059 19,279 13,628 20,854 6,676 9,655 26,941 9,975 1,733 11,181 9,576 22,470 173,027 Due to members—reserve account: July26 86,021 660,176 81,124 103,970 42,920 34,923 177,731 42,330 35,869 70,847 30,669 68,616 1,435,196 Aug.2 91,574 629,814 83,680 108,184 44,434 36,212 183,042 49,116 34,272 63,872 28,630 70,702 1,423,532 Aug.9 87,695 621,036 84,598 109,226 45,570 38,327 178,394 54,227 36,052 65,820 30,058 69,702 1,420,705 Au^.16 93,769 618,438 97,140 120,010 44,958 37,561 191,471 51,664 36,935 69,173 30,771 72,121 1,464,011 Aug. 23 89,839 643,645 82,559 108,363 46,225 37,581 191,793 54,758 36,369 68,319 30,321 69,708 1,459,480 Collection items: July26 27,248 98,039 49,356 56,494 28,285 18,675 45,483 21,623 21,828 10,571 15,291 401,186 Aug.2 30,267 104,787 45,096 36,501 29,982 17,233 48,324 24,821 9,670 22,536 10,884 10,810 390,911 Aug.9 37,480 116,713 39,732 43,326 33,692 20,550 45,085 30,032 17,807 27,024 8,936 12,970 433,347 Aug. 16 38,664 117,946 49,649 42.688 46,630 19,782 46,937 27,176 13,127 30,497 10,943 17,163 461,202 Aug. 23 34,OSS 113,354 55,041 39)078 32,111 22,501 47,553 30,176 19,393 26,690 11,621 19,341 450,917 Other deposits, including foreign government credits: July 26 103,625 5 4,785 234 28 2,716 111,840 Aug.2 109,591 261 5 1,842 88 26 2,880 114,718 Aug.9 119,721 799 7 2,795 127 32 3,540 127,050 Aug. 16 108,016 129 7 3,979 149 30 22 2,902 115,234 Aug. 23 108,002 160 11 1,272 120 3 2,993 112,597 Total gross deposits: July 26 128,447 869,379 148,263 181,813 82,361 67,849 266,781 80,943 59,563 122,710 58,231 114,922 2,181,262 Aug.2 137,269 871,096 135,011 168,737 78,224 60,354 251,882 86,220 54,150 101,294 47,636 98,524 2,090,397 Aug.9 144,990 883,065 135,836 175,589 87,113 65,645 261,356 91,352 62,292 106,499 48,980 98,363 2,161,080 Aug. 16 141,599 851,924 150,763 175,010 95,1(54 65,493 244,201 88,898 55,992 107,392 55,238 104,328 2,136.002 Aug. 23 144,986 884,280 151,228 168,455 85,012 69,748 267,559 95,029 57,531 106,190 51,521 114,512 2,19(5,051 Federal Reserve notes in actual circulation: July 26 125,759 620,439 162,918 177,616 78,819 57,237 271,777 72,726 58,088 78,761 32,750 133,945 1,870,835 Aug.2 128,844 628,402 167,206 177,291 81,563 58,558 279,752 74,926 58,346 80,858 33,020 137.699 1,906,465 Aug.9 131,725 633, 917 174,714 187,075 84,433 59,866 287,829 77,037 58,657 82,666 33,154 139; 2031,955,276 Aug. 16 132,857 640,879 177.232 188,467 86,950 61,589 294,071 80,158 59,328 84,358 34,852 144,678 1,985,419 Aug. 23 134,157 649,650 180;426 200,159 87,767 62,722 302,269 81,825 60,607 85,958 38,079 149,218 2,032,837 Federal Reserve bank notes in circulation—net liability: July 26 110 1,99S 7,990 11,084 Aug.2 110 1,998 7,795 541 1,035 11,479 Aug.9 110 2,000 8,000 2,451 1,155 13,716 Aug. 16 110 3,395 7,820 2,597 1,245 15,167 Aug. 23 344 258 110 4,216 7,820 2,691 1,425 16,864 All other liabilities: July 26 1,827 8,417 1,068 1,703 1,235 665 3,221 1,101 1,015 1,898 944 1,553 24,647 Aug.2 1,879 8,585 1,135 1,831 1,476 690 3,379 1,132 1,055 1,906 912 1,585 25,545 Aug.9 1,987 9,051 1,332 1,975 1,529 724 3,577 1,156 1,037 1,895 931 1,617 26,811 Aug. 16 2,104 9,655 1,339 2,050 1,425 747 3,655 1,156 1,061 1,931 954 1,625 27,702 Aug. 23 2.206 10,529 1,405 2,133 1,411 798 3,877 1,184 1,147 1,965 1,007 1,689 29,351 Total liabilities: July 26 262,582 1,518,851 319,188 369,742 166,448 129,018 553,922 158,374 121,550 214,901 255,901 ;, 165,403 Aug.2 274,541 1,528,706 310,292 356,477 165,296 122,869 547,167 165,900 116,438 195,395 85,136 243,321 4.111,538 Aug.9 285,251 1,551,671 319,032 373,332 177,111 129,504 564,944 173,185 124,873 202,605 88,548 244,837 4;234,893 Aug.16 283,109 1,523,106 336,485 374,224 187,576 131,093 555,546 173,852 119;273 205,046 96,686 258,388 4,242,384 Aug.23 1,565,469 340,468 379,450 178,227 136,532 588,830 181,725 122,187 205,478 96,348 271,357 4,353.987 I Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
905 SKPTEMBBB 1,1918. FEDERAL BESEBVE BULLETIN. FEDERAL RESERVE NOTES. Federal Reserve note account of each Federal Reserve Bank at close of business on Fridays, July 26 to Aug. 2$, 1918. [In thousands of dollars: i. e., 000 omitted.] Boston. Y N o e r w k . I j 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 t s y a . s Dallas. F c S i r s a a c n n o - . Total. Federal Reserve notes received from agent—net: July 26 128,885 664,355 i175,456 189,709 84,954 298,567 76,970 59,142 84,243 33,207 145,032 1,999,480 Aug. 2 131,164 673,198 i175,099 189,977 86,307 59,733 304,749 79,149 59,598 85,545 33,383 150,278 2,028,180 Aug. 9 135,136 696,797 I182,227 196,230 89,318 62,4-14 311,518 82,327 59; 841 88,636 33,392 150,607 2,088,473 Aug. 16 136,402 691,972 I190,309 198,992 91,207 64,821 316,332 85,935 60,353 90,752 35,165 158,708 2,118,948 Aug. 23 137,975 699,623 !195,308 210,974 93.603 66,020 321,796 87,055 61,388 91,324 38,827 159,934 2,163,837 Federal Reserve notes held by banks: July 26 3,120 43,916 12,538 12,093 6,135 1,723 26,790 4,244 1,054 5,482 457 11,087 128,645 Aug. 2 2,320 44,796 7,893 12,686 4,744 1,175 24,997 4,223 1,252 4,687 363 12,579 121,715 Aug. 9 3,411 57,880 7,513 9,155 4,885 2,578 23,689 5,290 1,184 5,970 238 11,404 133,197 Aug. 16 3; 545 51,093 13,077 10,525 4 257 3,232 22,261 5,777 1,025 6,394 313 12,030 133,529 Fede A r u a g l . R 2 e 3 serve notes 3; 818 49,973 14,882 10,815 5,836 19,527 5,240 781 5,366 748 10,716 131.000 In actual circulation: A Ju u l g y . 2 2 6 I 1 2 2 5 8 3 , 8 7 4 5 4 9 6 6 2 2 0 8 , , 4 4 3 0 9 2 ! I 1 1 6 6 2 7 , , 9 2 1 0 8 6 1 17 7 7 7 , , 2 6 9 1 1 6 7 81 8 , , 5 8 6 1 3 9 . 5 5 7 8 , , 2 5 3 5 7 8 2 2 7 7 1 9 , , 7 7 7 5 7 2 7 7 4 2 , ,7 9 2 2 6 6 5 5 8 8 , ,3 0 4 8 8 8 8 7 0 8, , 7 8 6 5 1 8 3 3 2 3 , , 7 0 5 2 0 0 1 1 3 3 7 3 , , 6 9 9 1 9 5 1 1, , 9 8 0 7 6 0 , , 4 8 6 3 5 5 Aug. 9 131,725 638,917 i 174,714 187,075 84.433 59,866 77,037 58,657 82,666 33,154 139,203 1,955,276 Aug. 16 132,857 640,879 i 177,232 188,467 86,950 61,589 294,071 80,158 59,328 84,358 34,852 144,678 1,985,419 Aug. 23 134,157 649,650 | 180,426200,159 87,767 62,722 302,269 81,825 60,607 85,958 38,079 149,218 2,032,837 Gold deposited with or to the credit of Federal Reserve agent: July 26 56,445 279,859 99,389 110,629 32,950 26,339 118,392 31,498 23,596 33,497 13,980 83,848 910,420 Aug. 2 56,224 279,023 99,031 110,497 32,613 23,312 119,574 31,496 23,352 33,497 13,980 80,194 902,793 Aug. 9 60,847 279,023 97,059 116,550 36,511 25,353 146,343 31,389 23,195 33,368 13,928 77 123 940,692 Aug. 16 60,612 278,539 96,541 121,772 36,356 24,135 151,157 46,830 23,027 36,790 13,915 71,824 961,498 Aug. 23 , 60,185 277,893 113,780 126.174 38,278 27,424 156 622 51,775 22,862 48,711 13,873 81,190 1,018,767 Paper delivered to Federal Reserve agent: July 26 115,471 500,428 87,415 114,264 61,784 32,744 243,859 54,296 51,812 78,384 39,536 73,253 1,453,246 Aug. 2 , 105,106 485,880 85,854 111,450 67,510 36,749 241,881 48,808 54,174 77,751 31,061 79,213 1 425,437 Aug. 9 103,895 525,561 95,145 117,282 70,744 38,033 240,237 44,972 47,022 71,939 38,766 86,583 1,480,179 Aug. 16 86,597 554,757 100,475 113,206 59,925 41,265 214,353 47,996 52,335 66,523 39,987 86,425 1,463,844 An?. 23 93,854 677,685 83,047 61,222 39,610 223,707 46,545 52,036 62,618 43,551 82,554 1,573,109 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
906 FEDERAL RESERVE BULLETIN. SEPTEMBER 1, 1918. Federal Reserve note account of each Federal Reserve agent at close of business on Fridays, July 26 to Aug. 23,1918. [In thousands of dollars; i. e., 000 omitted.] | ! ! Boston. Y N o e r w k - . d P el h p i h la i - a. C l l a e n v d e . - Atlanta. 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. Total. FEDERAL RESERVE NOTES. Received from Comptroller: July 26 186,640 1,012,080 230,240 230,000 116,820 96,740 372,860 102,800 78,580 111,700 68,500 156,980 2,763,940 Aug. 2 186,640 1,012,080 236,680 231,600 118,020 99,540 ! 378,300105,680 78,580 111,700 68,500 162,380 2,789,700 A A A u u u g g g . . . 9 1 2 6 3 1 i 1 1 1 8 8 9 6 6 5 , , , 6 6 9 4 4 4 0 0 0 1 1 1 1 1 , , 0 , 0 0 2 4 5 5 5 1 , , , 2 0 6 8 8 8 0 0 0 2 2 2 3 4 4 6 3 7 , , , 6 3 1 8 6 2 0 0 0 2 2 2 4 4 3 2 6 5 , , , 0 1 7 1 6 0 0 0 0 1 1 11 2 2 22 5 3 77 , , ,99 4 1 22 2 2 00 0 0 i 1 1 1 11 1 0 1 0 1 2 2 5 2 5 , , , ,8 3 8 3 3 6 4 6 6 4 0 0 0 0 0 3 3 3 8 9 9 6 3 4 , , , 7 3 9 4 6 8 0 0 0 1 1 1 0 0 1 7 9 7 , , ,8 6 6 8 8 8 0 0 0 8 8 8 1 1 1 , , , 5 5 5 8 8 8 0 0 0 1 1 1 1 1 1 7 9 5 , , , 7 7 7 0 0 0 0 0 0 6 6 6 8 8 8 , , , 5 5 5 0 0 0 0 0 0 1 1 1 6 6 7 9 2 3 , , , 1 7 0 8 8 4 0 0 0 2 2 2 , , , 8 8 9 9 3 4 5 2 0 , , , 0 7 2 2 4 4 0 0 0 Returned to Comp- | troller: July 26 ! 34,955 226,325 40,244 19,491 25,501 ! 20,045 23,393 18,780 14,883 19,237 17,068 11,948 471,870 Aug. 2 ! 35,176 230,682 40,601 19,623 25,938 ! 20,072 23,931 18,791 15,127 19,295 17,132 12,102 478,470 Aug.9 i 36,204 233,883 42,573 20,570 26,452 I 20,481 25,062 19,393 15,384 19,544 17,373 12,173 489,092 Aug. 16 ! 36,938 23S,708 43,091 21,348 27,203 20,999 25,988 19,915 15,652 20,028 17,520 12,472 499,862 Aug. 23 i 37,365 242,857 44,252 21,946 27,807 21,210 26,964 20,565 15,817 20,056 17,713 497,152 Chargeable to Federal Reserve agent: July 26 151,685 785,755 210,509 91,319 76,695 349,467 84,020 63,697 92,463 51,432 145,032 2,292,070 Aug.2 151,464 781,398 196,079 211,977 92,082 79,468 354,369 86,889 63,453 92,405 51,368 150,278 2,311,230 Aug.9 150,436 791,397 194,107 215,130 96,668 81,859 361,678 88,287 66,196 96,156 51,127 150,607 2,343,648 Aug. 16 149,702 806,372 200,269 220,812 98,217 91,361 367,372 89,765 65,928 97,672 50,980 156,708 2,395,158 Aug. 23 158,575 202,868 224,094 100,113 94,650 368,016 97,315 65,763 99,044 50,787 173,040 2,443,088 In hands of Federal Reserve agent: July 26 22,800 121,400 14,540 20,800 6,365 17,735 50,900 7,050 4,555 8,220 18,225 292,590 Aug.2 20,300 108,200 20,980 22,000 5,775 19,735 49,620 7,740 3,855 6,860 17,985 283,050 Aug.9 15,300 94,600 11,880 18,900 7,350 19,415 50,160 5,960 6,355 7,520 17,735 255,175 Aug. 16 13,300 114,400 9,960 21,820 7,010 26,540 51,040 3,830 5,575 6,920 15,815 276,210 Aug. 23 20,600 109,200 7,560 13,120 6,510 28,630 46,220 10,250 4,375 7,720 11,960 13,105 279,251 Issued to Federal Reserve Bank, less amount returned to Federal Reserve agent for redemption: July 26 128,885 664,355 175,456 ! 189,709 84,954 58,960 298,567 76,970 59,142 84,243 33,207 145,032 1,999,480 Aug.2 131,164 673,198 175,099 j 189,977 86,307 59,733 304,749 79,149 59,598 85,545 33,383 150,278 2,028,180 Aug.9 i 135,136 696,797 182,227 I 196,230 89,318 62,444 311,518 82,327 59,841 33,392 150,607 2,088,473 Aug. 16 136,402 691,972 190,309 198,992 91,207 64,821 316,332 85,935 60,353 90,752 35,165 156,708 2,118,948 Aug. 23 137,975 699,623 195,308 210,974 66,020 321,796 87,065 61,388 91,324 38,827 159,934 2,163,837 Collateral held as security for put- I standing notes: j Gold coin and • certificates on hand- July 26 163,740 11,312 2,504 13,102 11,581 202,239 Aug.2 163,740 10,312 2,504 13,102 11,581 201,239 Aug.9 5,000 163,740 16,313 2,503 13,102 11,582 212,240 Aug. 16 5,000 163,740 21,312 2,503 13,102 11,581 217,238 Aug. 23 5,000 163,740 24,313 2,503 13,102 11,581 220,239 In gold-redemption fund- July 26 6,945 16,119 8,655 9,317 450 2,265 549 1,868 994 2,137 1,815 8,747 59,859 Aug.2 6,724 15,283 9,654 10.185 113 2,238 293 1,866 950 2,137 1,815 59,851 Aug.9 7,347 15,283 9,394 10)237 1,014 1,830 347 1,759 793 2,008 1,762 8,522 60,296 Aug. 16 7,112 14,799 9,254 10,460 856 2,312 439 1,699 1,625 2,430 1,750 8,223 60,959 Aug. 23 14,153 10,073 11,861 1,778 2,101 416 2,644 1,460 2,351 1,908 7,989 63,419 Gold-settlement I fund, Federal Reserve Board: July 26 49,500 100,000 90,734 90,000 32,500 21,570 117,843 29,630 9,500 31,360 584 75.101 648,322 Aug.2 49,500 100,000 89,377 90,000 32,500 18,570 119,281 29,630 9,300 31,360 584 71,601 641,703 Aug.9 48,500 100,000 87,665 90,000 35,500 21,020 145,996 29,630 9,300 31,360 584 68,601 668,156 Aug. 16 48,500 100,000 87,287 90,000 35,500 19,320 150,718 45,131 8,300 34,360 584 63,601 683,301 Aug. 23 48,500 100,000 103,707 90,000 22,820 156,206 49,131 8,300 46,360 384 ! 73,201 735,109 Eligible paper (required mini- ! mum):1 July 26 72,440 76,067 79,080 52,004 32,621 180,175 45,474 35,546 50,746 19,227 61,184 1,089,060 Aug.2 74,940 394,175 76,068 79,480 53,694 36*421 185,175 47,653 36,246 52,048 19,403 70,084 1,125,387 Aug.9 74,289 417,774 85,168 79,680 52,804 37,091 165,175 50,938 36,646 55,268 19,464 73,484 1,147,781 Aug. 16 75,790 413,433 93,768 77,220 54,851 40,686 165,175 39,105 37,326 53,982 21,250 84,884 1,157,450 Aug. 23 77,790 421,730 81,528 84,800 55,325 165,174 35,290 38,526 42,613 24,954 78,744 1,145,070 1 For actual amounts see item " Paper delivered to Federal Reserve agents" on page 905. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
SEPTEMBER 1, 1918. FEDERAL EESEEVE BULLETIN. 907 MEMBER BANK CONDITION STATEMENT. Principal resources and liabilities of member banJcs located in central reserve, reserve, and other selected cities as at close o business on Fridays from July 1.9 to Aug. 16, 1918. 1. TOTAL FOR ALL REPORTING BANKS. [In thousands of dollars; i. e., 000 omitted.) Boston. Y N o e r w k. d P el h p i h la i - a. C la le n v d e . - I m R o ic n h d - . Atlanta. Chicago. St. 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. Number of reporting banks: I j July 19 101 43 73 i 42 ! 718 July 26 102 44 73 I 42 j 725 Aug.2 102 44 73 42 725 Aug. 9 102 45 73 44 \ 734 Aug. 16 102 45 96 73 45 I 735 United States bonds to secure circulation: July 19 14,621 51,986 12,970 43,539 24,565 15,590 18,776 17,417 o,so» i 14,051 17,627 j 35,255 272,866 July 26 14.621 52,512 12,969 24,626 15,590 !18,776 17,417 6,469 ! 14,052 17,644 I 35,355 273,720 Aug.2 14;351 51,685 12,770 41,355 24,679 15,460 18,608 16,995 6,469 I 13,951 17,644 ! 35,115 269,082 Aug.9 14,351 51,247 12,770 40,350 24,660 15,465 I18,607 16,995 6,469 13,901 17,944 i34,505 267,264 Aug. 16 14,353 50,584 12,770 42,046 24,621 15,465 I 18,642 16,995 6,469 13,873 17,929 i34,505 268,252 Other United States bonds, including Liberty bonds: July 19 14,991 258,304 25,905 57,422 !31,030 27,434 82,382 23,496 12,649 18,817 16,401 24,059 592,890 July 26 14,055 254,997 27,525 55,551 30,573 25,247 79,874 21,158 12,484 18,763 15,637 24,420 580,284 Aug.2 14,016 247,132 27,021 55,602 30,017 24,737 77,588 20,999 13,271 17,777 15,020 24,155 567,335 Aug.9 13,720 239,867 26,644 54,719 28,349 24,608 79,599 20,134 11,397 16,963 16,010 23,764 555,774 Aug. 16 15,410 238,846 30,601 53,512 31,042 25,105 66,479 18,638 15,738 17,205 15.995 25,928 554,499 United States certificates of indebtedness: July 19 29,799 255,389 26,070 37,245 14,375 I 12,717 69,712 17,217 12,298 18,624 7,860 26,155 527,461 July 26 46,770 394,446 37,139 58,548 17,988 !19,050 96,755 24,442 17,170 24,857 10,605 38,564 786,334 Aug.2 47,508 399,122 37,386 55,487 19,353 !20,457 101,145 23,019 15,423 24,596 11,253 40,117 794,866 Aug.9 67,294 516,120 50,560 74,036 25,118 !28,208 110,504 29,255 18,512 31,686 13,950 52,010 1,017,253 Aug. 16 54,589 495,318 49,703 72,312 26,683 !26,689 108,525 29,009 18,781 31,203 14,350 51,890 979,052 Total United States securities owned: July 19 59,411 565,679 64.945 138,206 69,970 55,741 170,870 58,130 31,416 51,492 41,888 85,469 1,393,217 July 26 75,446 701.955 77; 633 157,788 73,187 59,887 195,405 63,017 36,123 57,672 43,886 1,640,338 Aug.2 75,875 77,177 152,444 74,049 60,654 197,341 61,013 35,163 56,324 43,917 99,387 1,631,283 Aug.9 95,365 807,234 89,974 169,105 78,127 68,281 208,710 66,384 36,378 6622.,5S5S0O .4477., G90044 110,279 1,840,291 Aug. 16 84,352 784,748 93,074 167,870 82,346 67,259 193,646 64,642 40,988 62,281 48,274 112,323 1,801,803 Loans secured by United States I bonds and certifi- j cates: July 19 45,905 230,153 42,584 37,530 18,685 5,385 53,394 i 14,733 5,975 4,381 5,655 9,236 473,616 July 26 46,158 233,557 42,571 37,644 19,077 5,450 53,520 18,349 6,120 4,510 5,116 8,478 480,550 Aug. 2 47,228 241,841 43,611 37,573 18,143 5,519 69,141 14,901 6,404 4,535 4,857 7,916 501,669 Aug.9 42,654 225,342 43,830 37,311 18,804 I 4,930 58,737 13,616 7,349 4,581 5,352 8,267 470,773 Aug. 16, 39,785 217,029 44,225 38,068 20,028 I 7,522 61,283 13,273 9,156 4,375 5,302 9,391 469,437 Other loans and investments: July 19 774,374 4,354,418 616,934 973,611 351,998 I 274,814 |l,411,743 367,654 253,198 471,772 164,487 520,194 10,535,197 July 26 782,219 4,355,896 601,371 973,364 340,671 I 278,278 ,1,413,518 373,355 257,079 470,965 167,651 526,300 10,540,667 Aug.2 776,760 4,405,907 609,318 979,472 356,336 273,365 !l,419,400 381,671 260,960 473,036 168,670 521,963 ! 10,626,858 Aug.9 791,068 4,441,781 619,174 977,703 361,266 ! 286,263 1,442,309 382,095 261,447 475,459 171,622 526,483 110,736,670 Aug.16 778,190 4,436,176 620,256 973,214 367,588 j 287,587 1,440,540 382,988 468,947 175,623 532,537 110,731,432 Total loans and investments: July 19 879,690 5,150,250 724,463 1,149,347 440,653 335,940 1,636,007 440,517 290,589 527,645 212,030 614,899 12,402,030 July 26 903,823 5,291,408 721.575 1^,,1—68,,7.9--6 432,935 350,429 1,662,443 454,721 299,322 533,147 216,653 633,117 112,668,360 Aug.2 899,863 5,345,687 730,106 ! 1,169,489 448,528 I 339,538 1,685,882 457,585 302,527 533,895 217,444 629,266 12,759,810 Aug.9 929,087 5,474,367 752,978 11,184,119 458,197 ; 359,474 1,709,756 462,095 305,174 542,590 224,878 645,029 13,047,734 Aug.16 902,327 5,437,953 757,555 11,179,152 469,962 j 362,368 1,695,469 460,903 317,930 535,603 229,199 654,251 13,002,672 Reserve with Federal i Reserve Banks: July 19 66,654 612,200 65,717 79,904 27,186 I 25,204 135,735 30,212 17,873 42,287 13,851 45,054 1,161,877 July 26 60,538 624,017 50,060 79,763 26,757 I 23,397 135,606 30,378 17,724 45,330 13,882 43,470 1,150,922 Aug.2 65,967 609,651 52,958 75,584 28,058 ! 23,708 139,967 34,411 17,015 40,748 14,386 44,030 1,146,483 Aug.9 63,289 593,661 55,244 79,759 29,270 I 25,779 137,446 36,814 17,338 44,008 14,484 44,862 1,141,954 Aug. 16 67,436 576,598 66,063 88,607 29,865 25,618 145,146 33,974 17,785 48,048 14,498 44,121 1,157,759 Cash in vault: July 19 26,695 122,630 20,880 36,207 17,179 14,346 58,582 12,386 8,207 15,705 10,421 20,476 363,715 July 26 25,036 123,989 18,974 29,224 15,206 13,518 55,418 12,241 8,538 19,327 10,534 20,905 352,910 Aug.2 24,429 119,037 19,224 32,453 15,666 13,896 56,289 11,656 8,781 15,722 9,780 20,630 347,563 Aug.9 26,005 123,107 19,278 27,996 16,022 14,895 54,614 11,564 8,503 14,709 10,357 19.501 346,651 Aug.16 25,220 118,603 21,004 30,271 16,199 I 14,025 59,837 11,157 7,968 14,988 11,156 19;467 319,895 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
908 FEDERAL RESERVE BULLETIN. SEPTEMBER 1, 1918. Principal resources and liabilities of member banks located in central reserve, reserve, and other selected cities at the close of business on Fridays from July 19 to Aug. 16, 1918—Continued. 1. TOTAL FOR ALL REPORTING BANKS—Continued. [In thousands of dollars; i. e., 000 omitted.] Boston. Y N o e r w k. d P el h p i h la i - a. C la le n v d e . - 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. I Net demand deposits on which reserve is I computed: July 19 649,466 4,252,937 561,652 699,511 266,352 195,947 1,016,855 250,028 160,135 359,104 130,176 377,072 8,919,235 July 26 644,030 4,234,369 553,158 704,714 271,590 191,067 1,003,444 249,828 161,671 353,220 130,710 378,708 8,876,509 Aug.2 658,741 4,276,593 558,518 707,575 273,523 189,989 1,024,460 250,768 158,304 363,784 130,447 367,323 8,960,025 Aug. 9 657,434 4,257)384 568,275 670,972 285,661 199,094 1,019,094 263,612 166,135 369,957 135,227 377,920 8,970,765 Aug. 16 652,524 4,287,035 578,632 694,661 305,395 204,499 1,048,703 266,037 165,376 371,468 139,565 386,556 9,100,451 Time deposits: July 19 265,619 15,340 226,035 47,017 82,983 358,766 74,407 44,280 62,092 25,602 113,249 1,409,222 July 26 265,976 15,246 236,414 46,310 83,766 359,916 73,916 44,905 62,820 26,026 117,506 1,426,697 Aug.2 , 94,447 268,099 14,400 232,240 46,449 84,022 360,099 83,644 45,350 62,879 25,006 129,121 1,445,755 Aug. 9 96,330 273,035 14,132 268,031 52,505 89,545 359,247 75,520 45,345 64,935 26,671 117,640 1,482,936 Aug. 16 96,921 276,779 14,421 232,304 57,540 90,378 74,785 45,407 63,176 25,482 114,946 1,451,037 Total net deposits on which reserve is computed: July 19 4,321,620 567,061 769,850 222,749 1,115,408 269,392 176,054 377,732 138,635 411,047 9,338,666 July 26 681,050 4,303,118 558,564 779,209 287,580 218,090 1,102,720 268,980 177,895 372,066 139,292 413,960 9,302,524 Aug.2 696,004 4,345,810 563,650 780,337 289,559 215,653 1,123,832 272,258 174,700 382,648 138,721 406,059 9,389,261 Aug. 9 695,294 4,327,778 573,325 754,480 303,880 1,118,227 283,289 182,536 389,438 144,097 413,212 9,411,971 Aug. 16 690,582 4,358,460 583,815 767,492 325,000 232,076 1,147,760 285,484 181,780 390,421 147,924 421,040 9,531,834 Government deposits: July 19 62,248 321,240 30,532 36.351 16,670 15,247 48,803 21,330 18,976 12,999 4,937 13,470 602,803 July 26 61,740 501,187 17,359 59,944 19,868 9,375 65,383 22,259 29,008 15,476 10,980 16,770 829,349 Aug.2 53,372 475,579 51,048 50,073 18,072 13,440 67,429 18,506 27,876 18,828 10,666 31,368 836,257 Aug. 9 66,129 618,441 43,579 57,841 15,477 16,926 64,612 25,995 17,244 24,155 9,178 4,554 964,131 Aug. 16 503,999 42,451 67,348 24,954 21,674 81,307 30,866 25,507 33,740 10,500 13,816 943,105 Ratio of combined reserve and cash to total net deposits (per cent): July 19 15.3 July 26 14.8 Aug. 2 14.6 Aug. 9 14.4 Aug. 16 14.4 2. MEMBER BANKS IN CENTRAL RESERVE CITIES. Number of reporting banks: i July 19 68 122 July28 123 Aug.2 123 Aug.9 123 Aug. 16 123 United States bonds to secure circulation: July 19 37,643 1,469 10,392 49,504 July 26 38,168 1,469 10,392 50,029 Aug.2 37,341 1,269 9,970 48,580 Aug.9 36,903 1,268 9,970 48,141 Aug. 16 j 36,340 1,282 9,970 47,592 Other United States ! bonds, including | Liberty bonds: July 19 230,717 47,554 16,497 294,768 July 26 227,411 45,675 15,579 288,665 Aug.2 220,159 43,870 14,640 278,669 Aug.9 214,101 46,801 13,898 274,800 Aug. 16 215,140 32,004 12,539 United States certificates of indebted- ; nessi July 19 242,396 39,191 11,687 293,274 July 26 375,184 54,416 17,903 447,503 Aug.2 59,167 16,204 455,997 Aug.9 493,243 58,874 21,685 573,802 Aug. 16 473,252 57,490 21,164 551,906 Total United States securities owned: July 19 510,756 88,214 38,576 637,546 July 26 640,763 101,560 43,874 786,197 Aug.2 638,126 104,306 40,814 783,246 Aug.9 744,247 106,943 45,553 896,743 Aug. 16 724,732 90,776 43,673 859,181 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
SEPTEMBER 1, 1918. FEDERAL RESERVE BULLETIN. 909' Principal resources and liabilities of member banks located in central reserve, reserve, and other selected cities as at close of business on Fridays from July 19 to Aug. 16, 1918—Continued. 2. MEMBER BANKS IN CENTRAL RESERVE CITIES—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 lo 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 t s y a . s Dallas. F c S i r s a a c n n o - . Total. Loans secured by United States bonds and certificates: Jnlvl9 206,522 38,303 11,966 256,791 July 20 210,096 37,494 15,663 263,253 Aug. 2 218,265 52,576 11,799 1 282,640 'iug. 9 202,078 42,377 10,693 255,148 Aug. 16 196,828 44,545 9,809 251,182 Other loans and investments: Julv 19 4,008,026 859,986 277,293 5,145,305 Julv 26 4,010,611 858,016 269,299 5,137,926 \ug. 2 4,062,717 864,099 278,138 5,204,954 Aucr. 9 4,087,181 885,208 279,174 5,251,563 Aug. 16 -1,087,862 882,546 279,711 i 5,250,119 Total loans and in- j vestments: July 19 4,725,304 986,503 327,835 6,039,642 Julv 26 4,861,470 997,070 328,836 ! 6,187,376 •Vug. 2 4,919,108 1,020,981 330,751 6,270,840 Aug. 9 5,033,508 1.034,528 335.420 6,403.454 ixiz. 16 5,009,422 1,017,867 333', 193 6,360;.4S2 Reserve with Federal Reserve Banks: July 19 588 713 96,552 22,564 707,829 July % 594 617 95,007 23,619 ; ! 713,243 'Vuf 2 5831585 i i 98,003 26,593 708,181 •ViSg Q 567 640 95,756 30,181 693,577 Aug. 36... 551,527 100,778 25,877 678,182 Cash in vault: i Julv 19 108,961 34,662 6,487 150,110 JuSv 26 110 488 32,241 6,345 149,074 Aug. 2 106,075 32,515 6,074 144,664 *ug 9 110 332 32 830 5 759 148,921 -\ug. 10 106,005 36 572 5) 609 148,186" Net demand deposits on which reserve is computed: July 19 3,944,373 ! 692, 770 178,182 4,815,325 July 26 3,938,110 673 081 177 826 4,789,017 •Sup. 2 3,982 499 69l' 835 178' 233 4,852,567 *iug. 9 3,962,252 683,745 190,160 i, 836,157 \ng. 16 . 3,990 899 705 572 192,705 4,889,176 Time deposits: ! i Julv 19 215.771 139,070 53,359 408.200 Julv 26 ! 2in!m ... . .. - 133,618 53,478 403' 229 •'<"'H7 2 2J8 270 133,071 62,715 414 056 Aug. 'j 224,180 132,864 53,673 410,717 Aug. 1G 225.840 132,415 53,822 ------ ::::::::: 412,077 Tola! net deposits on which reserve is ! computed: Julv 19 3 QQ4 lfifi 724,863 190,496 4,909,525 Julv 26 3!98"!987 = : ! ! 703,916 190,167 i 4.; 882.070 •Vug 2 i-- j4 032 809 i 722,544 192,706 4,948'119 A '• U y P ig 9 1 5 I > 1 4 4 0 a* 1 ? 3 , n 9 i 8 p 6 . : . ! 7 73 1 0 4 , , 1 1 2 0 9 6 2 2 0 0 5 2 , , 1 54 2 6 5 4 4 , , 9 9 8 3 4 0 , , 2 9 7 3 0 8 Government deposits: July 19 . 299.812 ! . i ' 32,077 16,918 348,807 Julv 23 ' - - - 474,587 41,025 17,332 ! 532,944 Aug. 2 450,375 3S,498 14,237 i 503,110 Aug. 9 586.379 I.. i .. 44,595 20,556 651,530 Ratio\l iopir coIgm bined re-! . 467'446 54,225 24,382 546,053 serve and cash to total net deposits ("oer cent): * Tiry 19 16 2 17.3 14.0 16.3 Ti!iv 26 15.8 j 17.1 14.4 15.9 • v \U u P g f (> t i 3 s 4 . A 7 1 16 7 . . 9 1 1 16 5 . . 1 8 1 1 5 5 . . 6 1 \--7g \P 14.fi 17.4 13.7 14.9 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
910 FEDERAL RESERVE BULLETIN. SEPTEMBER 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 from July 19 to Aug. 16, 1918—Continued. 3. MEMBER BANKS IN OTHER RESERVE CITIES. [In thousands of dollars; i. e., 000 omitted.] Boston. Y N o e r w k. d P el h p i h la i - a. C la le n v d e . - Chicago. 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, j I i F C S r i a s a c n n o - . Total. Number of reporting banks: July 19 61 42 ! 12 15 431 July 26 61 42 i 12 15 436 Aug. 2 61 42 I 12 15 •140 Aug. 9 61 46: 12 15 447 Aug. 16 61 46 ; 12 15 447 United States bonds to secure, circulation: July 19 4,498 7,796 8,965 35,816 14,189 12,360 16,557 5,330 3,490 14,051 15,176 35,255 173,483 July 26 4,498 7,796 8,96-1 35,966 14,251 12,360 16,557 5,330 3,490 14.052 15,191 35,355 173,810 Aug. 2 4,278 7,796 8,765 33,727 14,306 13,460 16,589 5,330 3,490 13; 951 15,191 35,115 171,998 Aug. 9 4,278 7,796 8,765 32,722 14,286 13,465 16,589 5,330 3,490 13,901 15,491 34,505 170,618 Aug. 16 4,279 7,796 8,765 34,299 14,247 13,465 16,610 5; 330 3,490 13,873 15,476 31,505 172,135 Other Unites States bonds, including Liberty bonds: July 19 9,218 12,329 20,836 51,693 19,062 i 23,992 33,169 4,536 10,272 18,817 14,255 24,059 242,238 July 26 8,640 12,275 22,564 48,968 18,245 | 21,857 32,455 3,397 10,014 18,763 13,507 24,420 235,105 Aug. 2 8,619 12,378 22,090 4.9,173 18,256 | 2~3 ."8"0"5 32,032 4,349 10,898 17,777 12,855 24,155 236,387 Aug. 9 8,538 11,047 22,241 48,509 17,460 f 23;668 31,136 4,186 9,113 16,963 13,713 23,764 230,338 Aug. 16 9,673 9,047 25,350 46,789 19,276 !24,268 32,696 4,003 13,404 17,205 13,610 25,928 241,249 United States certificates of indebtedness: I July 19 22,645 5,297 22,058 33,455 11,203 10,929 I 29,780 3,913 7,951 18,624 6,906 26,155 198,916 July 26 35,029 8,521 30,890 53,094 14,305 16,534 41,318 4,473 11,590 24,857 9,510 38,564 288,685 Aug. 2 36,611 8,352 31,081 49,743 15,837 19,990 [ 40,959 4,669 9,851 24,596 10,028 40,117 291,834 Aug. 9 51,428 10,163 42,608 67,355 19,263 27,541 I 50,362 5,319 11,594 31,686 12,500 52,0.10 381,829 Aug. 16 38,706 9,065 41,668 65,698 20,357 26,022 I 49,771 5,451 11,768 31,203 12,752 51,890 364,351 Total United States securities owned: July 19 36,361 25,422 51,859 120,964 44,454 47,281 79,506 13,779 21,713 51,492 36,337 85,469 814,637 July 26 48,167 28,592 62,418 138,028 46,801 50,751 90,330 13,200 25,094 57,672 38,208 98,339 697,600 Aug. 2 49,508 28,526 61,936 132,643 48,399 57,255 89,580 14,348 24,239 56,324 38,074 99,387 700,219 Aug. 9 64,244 29,006 73,614 148,586 51,009 64,674 98,087 14,835 24,197 62,550 41,704 110,279 782,785 Aug. 16 52,658 25,908 75,783 116,786 53,880 83,755 99,077 14,784 28,662 62,281 41,838 112,323 777,735 Loans secured by United Statesbonds and certificates: July 19 37,321 11,315 40,465 36,807 15,748 4,671 14,465 2,283 5,315 4,381 5,313 9,236 187,320 July 26 37,367 11,254 40,506 36,921 15,634 4.732 15,417 2,248 5,775 4,510 4,787 8,478 187,627 Aug. 2 38,466 11,604 41,640 36,681 15,186 5,429 15,946 2,254 6,094 4,535 4,519 7,916 190,270 Aug. 9 34,370 9,828 42,102 36,417 15,778 4,836 15,764 2,251 7,039 4,581 4,968 8.267 186,201 Aug. 16 31,617 9,353 42,476 36,974 16,875 7,449 16,176 2,291 8,816 4,375 4,839 9; 391 190,632 Other loans and investments: July 19 549,717 143,599 547,901 890,766 244,725 238,809 540,749 68,781 191,711 471,772 138,898 520,194 4,547,622 July 26 557,902 140,714 540,387 891,141 235,718 242,593 544,451 81,179 194,156 470,965 143,994 526,300 4,569,500 Aug. 2 552,384 142,388 539,513 894,754 252,029 260,849 544,577 81,615 197,777 473,036 143,408 521,963 4,604,293 Aug. 9 565,980 139,591 549,993 893,843 254,363 273,748 546,112 80,979 198,264 475,459 144,300 526,483 4,649,115 Aug. 16 552,670 144,267 550,297 259,751 275,146 547,244 81,146 204,295 468,947 146,100 532,537 4,657,026 Total loans and investments: July 19 623,399 180,336 640,225 1,048,537 304,927 290,761 634,720 527,645 180,548 614,899 5,349,579 July 26 643,436 180,560 643,311 1,066,090 298,153 304,890 650,198 96,625 225', 025 I 53.3,147 186,989 633,117 5,461,541 Aug. 2 640,358 182,518 643,089 1,064,078 315,614 323,533 650,103 98,217 228,110 I 533,895 186,001 629,266 5,494,782 Aug. 9 664,594 178,425 665,709 1,078,846 321,150 343,258 659,963 98,065 229,500 512,590 190,972 645,029 5.618,101 Aug. 16 636,945 179,528 668,556 1,078,386 330,506 346,350 682,41)7 98,221 211,773 535,603 192,777 654,251 5;625,393 Reserve with Federal Reserve Banks: July 19 , 53,163 11,902 60,113 73,966 20,769 j22,817 38,244 6,312 14,070 42,287 12,252 45,054 400,949 July 26 48,076 14,547 44,535 73,751 21,004 I21,235 39,850 5,531 13,693 45,330 12,042 43,470 383,064 Aug. 2 52,446 11,697 48,296 69,935 21,638 122,791 41,221 6,334 13,101 40,748 12,943 44,030f 395,180 Aug. 9 50,562 12,885 49,767 73,761 22,729 I24,828 40,879 5,282 13,124 44,008 12,662 395,349 Aug. 16 54,521 11,958 60,584 22,877 I 24,691 43,585 6,457 13,662 48,048 12,749 44,i2l' 426,062 Cash in vault: 1 July 19 17,976 5,011 16,619 31,073 11,778 '12,564 23,412 4,455 5,082 15,706 9,212 20,476 173,364 July 26 16,603 5,372 15,628 24,805 10,842 11,596 22,771 4,580 5,553 19,327 9,456 20,905 167; 438 Aug. 2 16,473 5,126 15,148 27,382 11,049 13,245 23,362 4,322 5,800 15,722 8,652 20,630 166,911 Aug. 9 17,613 4,647 16,132 23,504 11,156 14,095 21,458 4,763 ! 5,467 14,709 9,171 19,501 162,316 Aug. 16 16,462 4,812 17,066 25,271 11,805 13,422 22,909 4,161 5,047 14,988 9,710 19,467 165,120 Net demand deposits on which reserve is I computed: Jmyl9 495,042 120,793 494,339 640,095 194,832 172,310 315,643 56,388 I 115,529 359,104 111,275 377,072 3,452.422 July 26 489,728 121,292 485,522 633,513 197,831 166,035 321,953 55,687 ! 114,996353.220 111,411 378,708 3,429,896 Aug. 2 502,591 119,534 488,705 640,462 199,345 179,868 324,305 56,972 ! 113,605363i784 111,909 367,323 3,468,403 Aug. 9 502,763 120,941 498,637 602,995 207,552 189,142 327,020 55,714 j 118.899 369,957 115,445 377,920 3,486,985 Aug. 16 495,037 119,938 507,858 625,665 225,568 194,644 334,916 55,382 i 118;944 371,468 118,447 386,556 3; 554; 423 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
SEPTEMBER 1, 1918. FEDERAL RESERVE BULLETIN. 911 Principal resources and liabilities of member banks located in central reserve, reserve, and other selected cities as at close of business on Fridays from July 19 to Aug. 18, 1918—Continued. 2. MEMBER BANKS IN OTHER RESERVE CITIES—Continued. [In thousands of dollars; i. e., 000 omitted.] Boston. Y N o e r w k. d P el h p i h la i - a. C la le n v d e . - | Atlanta Chicago.] | | M ap i o n l n i e s. - K C a i n t s y a . s Dallas. F S r a a n n- " Total. Cisco. Time deposits: July 19 25,021 19,239 , 9,061 208,372 29,914 68,153 215,410 15,330 23,782 62,092 19,547 113,249 i 807,170 July26 25,051 ! 19,365 ! 8,770 208,641 30,006 69,039 222,009 15,152 23,502 62,820 20,004 117,506 j 821,865 Aug.2 25,001 i 19,277 8,085 208,208 30,107 80,460 222,716 15,181 23,644 62,879 19,001 129,121 ! 843,680 Aug. 16 26,630 j 17,720 : 7,833 243,928 33,313 85,984 222,053 16,114 23,590 64,935 19,911 117,610 1 879,651 Aug. 16 27.058 19,625 j 7,765 207,883 39,317 86,771 222,165 15,220 23,766 63,176 19,927 114,946 i 847,619 Total net deposits on which reserve is computed: July 19 502,548 ," 126,565 497,057 702,007 203,806 192,756 60,987 122,663 377,732 117,139 411,047 |3,694,573 July 26 497,243 ] 127,102 488,153 696,105 206,833 186,746 388,556 60,233 122,047 372,066 117,412 413,960 3,676,456 Aug.2 510,091 , 125,317 i 491,131 702,925 208,377 204,006 391,120 61,526 120,698 382,648 117,609 406,059 3,721,507 Aug.9 510,752 j 126,257 ! 500,987 676,173 217,546 214,937 393,636 60,548 125,976 389,438 121,418 413,212 3,750,880 Aug. 16 503,154 ! 125,826 510,188 688,030 237,363 220,675 401,565 59,948 126,074 390,421 124,425 421,040 3,808,709 Government deposits: July 19 49,821 i 8,937 28,175 35,258 12,247 13,855 16,491 3,340 16,381 12,999 4,320 13,470 215,294 July 26 48,081 ! 11,194 15,002 57,265 15,076 7,881 24,120 3,903 15,476 10,205 16,770 250,596 Aug.2 41,932 ! 10,057 45,569 47,800 13,379 13,360 28,560 3,514 25,061 18,828 9,643 31,368 289,071 Aug.9 51,693 i 13.063 38,747 55,392 11,630 16,771 19,793 4,683 14,231 24,155 8,398 4,554 263,110 Aug. 16 68,662 ! 15; 907 37,376 64,595 19,081 21,519 26,658 5,488 21,707 33,740 9,675 13,816 338,144 Ratio of combined reserve and cash to total net deposits (per cent): July 19 14.6 July 26 14.0 Aug.2 14.0 Aug.9 13.9 Aug. 16 , 14.3 4. MEMBER BANKS OUTSIDE RESERVE CITIES. Number of reporting banks: July 19 23 : 13 165 July 20 23 ! 13 i 166 Aug.2 23 ! 13 162 Aug. 9 23 ! 13 ! 164 Aug. 16 23 i 13 165 United States bonds to secure circulation: July 19 10,123 6,547 4,005 ! 7,723 10,376 3,230 750 1,695 2,451 49,879 July 26 10,123 6,548 4,005 7,723 10,375 3,230 750 1,695 2,453 i 49,881 Aug. 2 10,073 6,548 4,005 7,628 10,373 2,000 750 1,695 2,453 I 48,504 Aug. 9 10,073 6,548 4,005 7,628 10,374 2,000 750 1,695 2,453 48,505 Aug. 16 10,074 6,448 4,005 I 7,747 10,374 2,000 750 1,695 2,453 ; 48,525 Other United States bonds, including Liberty bonds: July'19 5,773 15,258 5,069 5,729 11,968 3,442 1,659 55,884 July 26 5,415 15,311 4,961 6,583 12,328 3,390 1,744 56,514 Aug 2 5,397 14,595 4,931 6,429 11,761 932 1,686 52,279 Aug.9 5,182 14,719 4,403 6,210 10,889 940 1,6(52 50,636 Aug. 16 5,737 14,659 | 5,251 6,723 11,760 837 1,779 53,587 United "States certificates of indebtedness: July 19 7,154 7,696 4,012 3,790 ; 3,172 1,788 74.1 35,271 July 26 11,741 10,741 6,249 5,454 ! 3,683 2,516 1,021 50,146 Aug.2 10,897 10,144 6,305 5,744 I 3,516 467 1,019 47,035 Aug.9 15,866 12,714. 7,952 6,681 I 5,855 667 1,268 61,622 Aupr. 16 15,883 13,001 I 8,035 6,614 I 6,326 667 1 264 62,795 Total United States securities owned: July 19 23,050 29,501 i 13,086 17,242 25,516 8,400 3,150 141,034 July 26 27,279 32,600 15,215 19,760 26,386 9,136 3,515 156,541 Aug. 2 26,367 31,287 15,241 19,801 25,650 3,399 3,455 147,818 Aug. 9 31,121 33,981 16,360 20,519 27,118 3,607 3,6*0 160,763 Aug. 16 31,694 34,108 17,291 21,084 28,460 3,504 3,793 164,887 Loans secured by United States bonds and certificates: July 19 8,584 12,316 2,119 723 2,937 714 626 29,505 July 26 8,791 12,207 2,065 723 3,443 718 609 29,670 Aug.2 8,762 11,972 1,971 892 2,957 90 619 28,759 Aug.9 8,284 13,436 1,728 894 3,026 94 596 29,424 Aug. 16 8,168 10,848 1,749 1,094 3,153 73 562 27,823 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
912 FEDERAL RESERVE BULLETIN. SEPTEMBER 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 from July 19 to Aug. 16, 1918—Continued. 4. MEMBER BANKS OUTSIDE RESERVE CITIES—Continued. [In thousands of dollars; i. e., 000 omitted.] | I Boston. Y N o e r w k. d P e h lp i h la i - a. C la le n v d e . - m R o ic n h d - . Atlanta. Chicago. L S ou t. is. i | 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. i Other loans and in -I vestments: j July 19 : 224,657 202,793 69,033 82,8-15 107,273 36,005 11,008 21,580 61,487 25,589 842,270 July 26 i 224,317 204,571 60,984 82,223 104,953 35,685 11,051 22,877 62,923 23,657 833,241 Aug.2 1 224,376 200,802 69,805 84,718 !104,307 12,516 10,724 21,918 63,183 25,262 817,611 Aug. 9 : 225,088 215,009 69,181 83,860 ,106,903 12,515 10,989 21,942 63,183 27,322 835,992 Aug. 16 i 225,520 204,047 69,959 78,588 ;107,837 12,441 10,750 22,131 j 63;491 29,523 824,287 Total loans and in- | j vestments: ! July 19 i 256,291 244,610 84,238 100,810 135,726 45,179 14,784 27,839 i 71,850 31,482 1,012,809 July 26 :260,387 249,378 78,264 102,706 134,782 45,539 15,175 29,260 | 74,297 29,664 1,019,452 Aug.2 ! 259,505 244,001 87,017 105,411 132,914 16,005 14,798 28,617 7"4', 41'7"" 31,443 994,188 Aug. 9 i 264,493 262,426 87,269 105,273 137,047 16,216 15,265 28,610 75,674 33,906 1,026,179 Aug. 16 i 265,382 249,003 88,999 100,766 139,456 16,018 15,105 29^489 76,157 36,422 1,016,797 Reserve with Federal Reserve Banks: ! July 19 ; 13,491 11,585 5,604 6,417 2,387 939 1,336 j 3,803 1,599 53,099 July 26 j 12,462 14,853 5,525 6,012 5,753 2,162 749 4,031 1,840 54,615 Aug.2 i 13,521 14,369 4,662 5,649 6,420 917 743 1^484 | 3,914 1,443 53,122 Aug. 9 i 12,727 13,136 5,477 5,998 6,541 951 811 1,351 ! 4,214 J 1 — 53,028 Aug. 16 ! 12,915 13,113 i 5,479 5,798 927 783 1,640 I 4,123 ! 1,749 53,515 Cash in vault: I July 19 ! 8, 719 8,658 4,261 ! 5,134 5,401 j .1,782 508 1,444 ! 3,125 I 1,209 40,241 July 26 ' 8,433 8,129 3,346 i 4,419 4,364 j 1,922 406 1,316 ; 2,985 i 1,078 36,398 Aug.2 i 7,956 7,836 4,076 ! 5,071 4,617 j 651 412 1,260 2,981 ! 1,128 35,988 Aug. 9 ; 8,392 8,128 3,146 | 4,492 4,866 i 800 326 1,042 I 3,036 j 1,186 35,414 Aug. 16 i 8,758 7, 786 3,938 i 5,000 4,394 | 603 356 1,387 ! 2,921 ' 1,446 36,589 Net demand deposits j on which reserve is j computed: i July 19 i 154.424 187,771 I 67,313 59,416 71,520 I23,637 8,442 15,458 i44,606 18,901 651,488 July 26 '' 154'302 174,967 67,636 71 201 73,759 25,032 8,410 16,315 i46,675 19,299 657,596 Aug.2 156.150 174,560 ! 69,813 67,113 74.178 10,121 8,320 ! 15,563 !44,699 18,538 639,055 Aug. 9 154 671 174,191 ! 69,638 67,977 78:109 9,952 8,329 17,738 i 47,236 19,782 647,623 Aug. 16 157,487 176,198 n7n0,774 ! 68,996 79;827 9,855 8,215 I 17,950 j 46,432 21,118 j. 656,852 Time deposits: July 19 : 68,811 80,609 6,279 19,663 17,103 14,830 4,286 I 5,718 I 20,498 6,055 i 193,852 July 26 i 68,845 ! 30,478 6,476 27,773 16,304 14,727 4 289 ! 5,286 i21,403 6,022 ! 201,603 Aug.2 ; 69,446 | 30,552 6,315 24,032 16,342 3,562 4,312 j 5,748 !21,706 6", 0nn0e5 ' 188,020 Aug. 9 : 69,700 ! 31,135 6,299 24,103 19,192 3,561 4,330 j 5,733 ! 21,755 6,760 ! 192,568 Aug. 16 ; 69,863 | 31,314 6,656 24,421 18,223 3,607 4,318 i 5,743 121,641 5,555 ! 191,341 Total net deposits on ! which reserve is ! ! computed: ! July 19 !183,914 200,889 70,004 67,843 78,850 29,993 10,279 I 17,909 |53,391 21,496 j 734,568 July 26 j 183,807 j 188,029 70,411 i 83,104 80,746 31,344 10,248 j 18,580 \55,848 j 21,880 743,997 Aug.2 ; 185,913 ; 187,654 72,519 j 77,412 81,182 11,647 10,168 i 18,026 i54,002 | 21,112 | 719,635 Aug. 9 1 184,542 187,535 72,338 j 78,307 86,334 •11,478 10,185 I 20,195 •56,560 ! 22,679 i ... , 730,153 Aug. 16 !187,428 180,618 73,627 79,462 87,637 11,401 10,066 ; 20,411 ! 55,706 ! 23,499 ! ! 738 855 G overnment deposits:; j 12,427 12,491 2,357 1,093 4,423 1,392 235 1,072 ; 2,595 ! 61' 38,702 iul v 26 ! 13,659 15,406 2,357 2,679 4,792 1,494 238 1,024 I 3,385 775 I 45,809 Aug.2 ! 11,440 15,147 5,479 2,273 4,693 80 371 755 ! 2,815 - 1,023 ; 44,076 AUJ?. 9 ; 14,436 18,999 4,832 2,449 3,847 155 224 756 j 3,013 1 780 ] 49,491 Aug. 16 ! 18,281 20,646 5,075 2,753 5,953 155 424 996 i 3,800 j 825 i 58,908 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
SBPTBMBBB 1, 1918. FEDKBAL EESEKVE BULLETIN. 913 EARNINGS ON INVESTMENTS OF FEDERAL RESERVE BANKS. Average amount of earning assets held by each Federal Reserve Bank during July, 1918', earnings from each class of earning assets, and annual rates of earnings on basis of July, 1918, returns. Average balances for tho month of the several classes of earning assets. 15iUs dis- Federal Reserve Bank. m co em un b t e e r d s f a o n r d Bi i l n ls o b p o e u n ght U St n a i l t e e s d Municipal Total. Federal lie- market. securities. warrants. ! serve Banks. Boston ! 878,351,444 $23,889,458 S2,949,698 $105,190,600 New York: | 384,581,752 107700,920 11,203,289 $50,520 503,541,481 Philadelphia I 70,513,203 15,106,579 3,006,352 88,626,134 Cleveland I 85,863,091 I*,519,452 8,824,220 109,206,763 Richmond ! 57,314,599 3,566,860 I 2,663,410 63,544,869 Atlanta j 33,731,192 3,753,538 ! 1,734,339 10,663 39,229,782 Chicago ! ISO, 535,488 17,186,023 I 9,201,650 206,923,161 St. Louis ! 01,765,222 2,677,857 ! 2,555,400 06, mS, 479 Minneapolis— 52,329,900 594,500 j 2,487,600 55,412,000 Kansas City... 69,307,188 94,859 ; 10,218,869 79,620,916 Dallas 31,742,644 1,408,065 i 5,047,823 38,198,532 San Francisco.. 59,613,699 18,676,070 I 4,503,966 82,793,735 Total. 1,165,849,422 209,174,231 ; 64,401,616 61,183 I 1,439,286,452 Earnings from— Calculated annual rates of earnings from- Bills dis- Bills dis- Federal Reserve Bank. c m o R F u e e e n a m s d n t e e e b d r r d v e a l e r f . s or m i b n o B a o u r i k p l g l e e h s n t t . U s S e t t n i c a e i u t t s e r e . i s d - p M r a a l u n n w t i s a c . r i- - Total. f b c R o F e o r e e r u s d s m n e e a r t e r e v n a m d e d l - m i b n o B a u o r i k l p 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 - p M r a a l u n n w t i s a c . r i - - Total. Banks. Banks. Per cent, j Per cent. \ Per cent. Per cent Percent. Boston 3293,412 I $86,365 87,998 £387 4.41 4.26 3.19 4. Si New York 1,359,001 i 383,596 23,689 8150 1,766 4.16 4.19 2.48 4.13 Philadelphia 258,925 | 54,375 8,442 321 4.32 4.23 3.30 4.27 Cleveland 324,637 j 52,301 25,232 ! 402 4.45 4.24 3.36 4.31 Richmond 225,250 ! 14,203 5,619 :.... 245 4.63 4,69 2.48 4.55 Atlanta 128,338 j 13,763 4,731 | 48 146, 4.34 4.18 3.11 4.27 Chicago 070,188 i 63,975 21,859 I 756, 4.37 4.38 2.79 4.30 St. Lo'iji;*. 230,246 i 10,419 5,525 ! 246 4.39 4.58 2.55 : 4.33 Minneapolis 212,406 ! 2,208 5,796 ; 220', 4. 78 4.38 2.73 4.68 Kansas City 298,573 ! 368 21,522 L 320, 5.07 4.56 2.48 i 4. 74 Dallas 128,127 5,837 10,088 ! 144, 4.75 4.88 2.35 i 4. 44 San Francisco 230,918 ! 67,319 10)421 ! 303, 4.56 4.24 2.78 i 4.40 -\ Total | 4,360,021 ; 754,7: 150,922 ! 193 i 5;2f»5,870 1.40 4.24 1 2.76 3.81 ! 4.31 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
914 FEDERAL RESERVE BULLETIN. SEPTEMBER 1, 1918. GOLD IMPORTS AND EXPORTS. Gold imports and exports into and from the United States. [In thousands of dollars; i. e., 000 omitted.] Total, Jan. 1 to Aug. 10, 1917. Ore and base 'bullion United States Mint or assay oiTice bars. Bullion refined United States coin Foreign coin Total , EXPORTS. Domestic: Ore and base bullion United States Mint or assay office bars Bullion refined Coin , Total., Foreign: Bullion refined. Coin Total Total exports.. Excess of gold imports over exports since Jan. 1,1918, $23,654; excess of gold imports over exports since Aug. 1,1914, $1,073,958. DISCOUNT RATES. Discount rates of each Federal Reserve Bank approved by the Federal Reserve Board up to Aug. SI, 1918. Maturities. Discounts. Trade acceptances. Secured by U. S. certificates of indebted- Federal Reserve Bank. W i m nc d i e t l a h m u y i d b n s i , e n 1 r g 5 1 d 6 a t y c s . 60 6 d 1 a t y o s . 90 l t i A u v p r g e a a - r l p s i c t e a o u r n c l d - k W n b it e o h s n i s n d o s 1 . r 5 Liberty loan I d t a o y 6 s 0 , 6 d 1 a t y o s , 90 banks' over 90 days,includ- inclusive. inclusive. co n l o la t t e e s r . al days. ing b m an e k m s' ber 1 d 6 a t y o s . 90 collateral notes. Boston A New York * 4 Philadelphia.. A Cleveland 4-1 Richmond 4?- Atlanta 4 Chicago 4 St. Louis 4 Minneapolis... 4 Si Kansas City... 4* Dallas 4 Ban Francisco. 1 Rate of 3 to A\ per cent for 1-day discounts in connection with the loan operations of the Government. 2 Rate for trade acceptances maturing within 15 days, A\ per cent. taken at the lower rate. , , r .__.. , r iring within 15 days will be NOTE 4.—Whenever application is made by member bariKS for renewal of 15-day paper, the Federal Reserve Banks may charge a rate notexceeding that for 90-day paper oi the same class. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
SEPTEMBER 1, 1918. FEDERAL RESERVE BULLETIN. 915 Estiiiiated general stock of money, money held by the Treasury and by the Federal Reserve system, and all other money in the United States Aug. 1,1918. i Held outside Amount per I • ! G o t e f h n e m e r U o a n l n e i s y t t e o i d c n k Uu T H nn r n e S e l ee a d u s d u i o n S ry t ta t a h a tte e e s s s \ i HI s F eT e Wl e r d v dI,* o ™e r*.?a B .o l!r a Rrf n o } k e~r - s u S r t t y h a e t a e U s n d n T i r t F e e a d e s d - - c S a t t h p a e i t t e a U s o T n u i r t t e e s a i d d s- e i States. G a o ss v e e t r s n o m f e t n h t e .1 and agents. era s l y R st e e s m er . ve u F r e y d e a r n a d l R th e e serve system. ! Gold coin 2 1 $3,080,767,801 8267,152,371 I §1,375,731,870 8448,938,791 Gold certificates i j ! 490,924,160 498,020,609 Standard silver dollars ! 473,197,059 i 32,118,420 78,106,835 Silver certificates i ! 8,038,719 353,088,844 Subsidiary silver ! 232,222,651 13,294,197 3 856,124 .218,072,330 Treasury notes of 1890 i 1,845,141 United States notes I 346,681,016 6,194,520 j 4 45,484,317 295,002,179 Federal Reserve notes I » 2,023,145,030 48,402,865 j 119,391,396 1,855,350,769 Federal Reserve Bank notes | 15,317,280 161,505 ! 3,494,900 11,690,875 National bank notes : 723.72S, 002 23,474,180 i 10,534,507 689,719,375 Total: I Aug. 1,1918 j 6,895,089,799 390,798,058 | 2,054,455,993 4,449,835,748 §41.97 July 1. 1918 ! 6,742,225,784 356,124,750 | 2,018,361,825 4,367,739,209 41.31 Juriei, i918 ! 6,615,007,782 348,322,704 1,983,796,097 4,282,888,981 40.51 May 1,1918. 6,540,954,630 321,192,308 1,909,594,674 4,310,167,648 40.82 Apr. 1,1918.. 6,480,181,525 339,856,674 1,873,524,132 4,266,800,719 40.47 Mar. 1,1918.. 6,351,548,056 330,927,176 1,827,126,208 4,193,494,672 39.83 Feb. 1,1918.. 6,271,603,039 332,576,125 1,834,102,608 4,104,924,306 39.04 Tan. 1,1918... 6,256,198,271 277,043,358 1,723,570,291 4,255,584,622 40.53 Uec. 1,1917.. 6,026,127,909 248,167,148 1,646,773,746 4,131,187,015 39.40 Nov. 1,1917.. 5,823,854,335 242,265,377 1,546,124,691 4,035,464,267 38.54 Oct. 1,1917.. 5.642,264,856 242,469,027 1,429,422,432 3,970,373,397 37.97 Sept. 1,1917., 5', 553,661,154 239,654,267 1,373,987,061 3,940,019,826 37.73 Aug. 1,1917.. 5,513,292,894 248,268,325 1,395,982,728 i 3,869,041,841 37.10 July 1,1917.. 5,480,009,884 253,671,614 1,280,880,714 ! 3,945,457,556 37.88 1 Includes reserve funds against issues of United States notes and Treasury notes of 1890 and redemption funds held against issues of national bank notes, Federal Reserve notes and Federal Reserve Bank notes. 2 Includes balances in gold settlement fund standing to the credit of the Federal Reserve Banks and agents, a Includes standard silver dollars. * Includes Treasury notes of 1890. 5 Amended figures. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
'916 FEDERAL RESERVE BULLETIN. 1, 1918. ABSTRACT OF CONDITION OF MEMBER BANKS. Abstract of reports of condition of member State banks and trust companies in each Federal Reserve district on June 29, 1918. [In thousands of dollars; i. e.. 000 omitted.] Dis- Dis- Dis- Dis- Dis- Dis- Dis- Dis- Dis- Dis- Dis- Total trict District trict trict trict trict trict trict trict trict trict trict United No. 1 No. 2 (66 No. 3 No. 4 No. 5 No. 6 No. 7 No. 8 No. 9 No. 10 No. 11 No. 12 Siatos (24 banks). (16 (30 (20 (38 (128 (24 (40 (16 (58 (53 (513 banks). banks). banks). banks). banks). banks). banks). banks). banks). banks). banks). RESOURCES. I J oans and discounts 306,934 1,491,255 91,488 212,218 33,516 92,058 496,989 151,704 32,043 I 42,691 20,744 72,795 3,0-.U,435 Overdrafts 127 602 111 199 375 158 293 169 51 j 64 84 441 2,674 Customers' liability account of acceptances and under letters of credit 16,884 106,907 1,096 2,167 260 1,851 10,600 7,883 100 114 1,874 149,797 United States securities (exclusive of United States securities bor- j rowed) ! 19,239 238,839 12,418 27,049 3,914 17,049 73,279 27,179 2,310 ! 4,440 2,245 9,463 437,424 War savings and thrift stamps actually owned. 151 289 43 191 48 133 300 432 32 ; 44 67 92 1,822 Stock of Federal Reserve Bank 1,508 8,490 1,574 2,310 318 666 2,789 1,163 158 213 147 381 19,717 Other bonds, stocks, etc. j (exclusive of securities; borrowed) j 75,811 447,201 86,917 135,404 9,739 15,731 149,056 32,395 3,169 11,001 714 11,775 978,913 B anking house | 7,376 39,514 5,268 10,403 1,207 5,576 10,355 4,357 579 832 515 2,206 88,188 O ther real estate o wned.. 79 6,754 1,582 3,913 580 2,527 1,114 627 133 107 159 1,727 19,302 Furniture and fixtures-.. 223 443 264 569 358 1,438 572 202 78 271 444 4,951 Due from banks and bankers 49,370 j 194,174 19,175 24,417 5,185 20,654 80,672 19,509 4,970 11,327 2,872 12,568 444,893 Exchange for clearing housej also checks on banks in same place... 6,008 I 71,910 1,514 3,104 351 3,245 13,656 3,528 489 1,134 1,407 107,135 Outside checks and other , cash items I 1,132 i 6,711 215 627 160 1,916 8,990 936 227 255 145 740 22,054 Cash ia vault 11,226 \ 40,781 3,781 6,056 1,181 4,161 22,845 3,801 856 918 3,323 100,391 Lawful reserve with Fed- ! i eral Reserve Bank 29,449 ' 281,211 15,868 19,044 2.425 i 8,725 49,921 14,975 1,790 4,758 5,715 435. 590 Items with Federal Re- j serve Bank in process j of collection i 3,652 j 8,691 1,092 1,779 336 I 878 3,706 3,517 j 47 | 98 501 2-1,352 Due from United States j Treasurer 4.43 142 6 j 54 24 149 36 | 3 i 357 Interest earned but not collected ; 665 j 10,582 605 ! 503 3 ! 143 467 80 4 155 13,221 Other assets i 2,387 ! 71,984 1,017 j 2,900 626 i 1,178 17,977 323 276 3IG 99,108 Total ; 533,264 J3,026,540 244,034 452,907 60,313 | 177,031 944,596 273,186 47,127 78,632 31,271 125,923 5,994,824 LIABILITIES. ! I Capital stock paid in— j 24,000 109,514 14,900 22,710 6,296 i 13,360 50,956 j 20,385 4,050 4,175 3,798 9,270 I 283,414 Surplus fund | 26,279 147,638 37,551 54,343 4,413 I 8,859 | 42,510 j 18,391 1,393 2,969 1,178 3,526 j 319,080 Undivided profits, less j expenses and taxes j paid I 7,032 29,178 4,98-1 8,630 1,469 j 1,964 j 12,959 4,477 | 612 610 514 1,456 73,83d Interest and discount | collected but not earned 717 5,266 4 151 43 | 210 I 88 | 122 ; 55 j 150 5 79 6,890 Amount reserved for taxes accrued 1,016 5,178 19'6 558 56 : 299 j 1,279 j 366 | 61 j 140 370 9,52S Am ter o e u s n t t a c re c s r e u r e v d ed for in- 1,336 | 5,262 335 507 85 ! 287 j 740 j 239 j 40 j 17 26 ! 117 9,041 "Due to Federal Reserve Bank 33 60 i 93 Due to banks and bankers 18,597 i 312,918 6,659 11,410 1,927 I 516 I 57,432 i 23,261 i 7,381 j 10,610 1,905 j 10,381 j 481,997 Demand deposits 310,245 |1,670',606 138,643 141,255 26,358 j 581 334,678 j 105,104 i 14,126 ! 37,345 18,018 47,658 2,918,617 Time deposits 77,124 I 221.815 16,828 175,623 14,755 j 236 !362,026 ! 59,901 ! 17,363 i 18,664 3,754 45,171 1,052.290 United States deposits... 47,521 i 310', 785 15,272 27,667 1,320 | 520 | 53,788 ! 11,879 ! 1,101 i 3,152 222 2,412 485^ 639 Bills payable with Fed- ! I ! eral Reserve Bank 315 | 42,368 6,900 3,939 1,621 i 4,393 ! 7,893 i 18,549 I 270 513 586 1,673 89,050 Bills payable other than ! i I ! with Federal Reserve Bank 200 j 10,813 ! 15 1,225 j 748 ; 3,647 j 1,825 | 666 I 95 1,238 1,808 24,177 Acceptances, letters of ! credit, and travelers' checks outstanding 17,101 | 110,714 1.096 2,165 563 : 851 : 10,580 " 7,883 i. 100 1,875 153,928 Other liabilities 1,781 ! 44,422 '601 2,052 152 207 • 6,020 | 804 j 62 18 67 57,195 Total. 533,264 J3,026,540 244,034 452,907 60,313 | 177,031 j 944,596 I 273,186 | 47,127 | 78,63312,271 125,923 5,994,824 ==-"•-" j- Liability for rediscounts, including those with I Federal Reserve Bank.. 15,773 | 43,566 4,333 3,567 1,864 j 2,982 j 16,472 12,218 | 2,422 "2,159 780 3,125 109,. 291 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
SEPTEMBER 1, 1918. FEDERAL EESEBVE BULLETIN". 917 Abstract of reports of condition of member State banks and trust companies of the Federal Reserve system on June 29, 1918, arranged by classes. [In thousands of dollars; i. c, 000 omitted.] Total Total c (5 i R C t 6 y e e b s n a b e t n a r r v n k a e l k s) s . c (9 i R 7 t O y e b s t b a h e n a r e v n k r e k s) s . [36 C b 0 o a b u n n a k t n s r t y s). S J b t U a u a t n n n e e i s k t e 2 s (5 d 9 ), 13 S M t b U a a t a n n e y i s k t e s 1 ( d 4 ) 0 , 4 , 9 1918. 1918. " RESOURCES. Loans and discounts ,720,253 872,439 442,743 3,044,435 2,884,923 Overdrafts 656 1,086 932 2,674 2,811 Customers' liability account of acceptances and under letters of credit 122,938 25,937 922 149,797 155,390 United States securities (exclusive of United States securities borrowed). 267,813 105,574 64,037 437,424 618,639 "War savings and thrift stamps actually owned 520 631 671 1,822 985 Stock of Federal Reserve Bank 10,180 6,723 2,814 19,717 18,264 Other bonds, stocks, etc. (exclusive of securities borrowed) 470,544 315,987 192,382 978,913 960,823 Banking house 3S,190 34,549 15,449 88,188 84,705 Other real estate owned 6,635 10,164 2,503 19,302 17,015 Furniture and fixtures 752 2,114 2,085 4,951 4,372 Due from banks and bankers. 234,265 145,370 65,258 444,893 372,282 Exchanges for clearing house, also checks on banks in same place., 81,211 21,646 4,278 107,135 156,761 Outside checks and other cash items 12,288 6,695 3,071 22,054 17,888 G old coin and certificates. 18,293 3,777 3,080 25,150 All other cash in vault , 31,337 26; 634 17,270 75,241 1112,224 Lawful reserve with Federal Reserve Bank 311,056 88,502 35,132 435,590 432,401 Items with Federal Reserve Bank in process of collection.. 13.128 7,734 3,490 24,352 25;267 Duo from United States Treasurer , '219 463 175 857 803 Interest earned but not collected , 9,989 1,634 1,598 13,221 12,126 Other assets , 63,877 24.383 99,108 61,067 Total. 3,423,044 1,702,042 863,738 5,994,824 5,938,746 LIABILITIES. Capita! stock paid in 135,350 91,325 56,739 283,414 270,878 Surplus fund 178,093 132,604 38,383 349,080 340,604 Undivided profits, loss expenses and taxes paid 33,929 25,450 14,506 73,885 75,641 Interest and discount collected but not earned 5,056 1,254 580 6,890 5,923 Amount reserved for taxes accrued. 6,098 j 2,602 828 9,528 9,924 Amount reserved for interest accrued 5,619 ! 1,902 1,520 9,041 17,558 Due to Federal Reserve Bank 93 93 55 Due to banks and bankers 356,397 j 96,884 28,716 481,997 465,679 Demand deposits 1,839,659 723,892 355,066 2,918,617 2,959,096 Time deposits 296,038 451,243 305,009 1,052,290 1,004,658 United States deposits 339,418 110,872 35,349 485,639 402,043 Bills payable with Federal Reserve Bank 50,961 25,336 12,753 89,050 172,079 Bills payable other than with Federal Reserve Bank 7,961 7,331 8,885 24,177 11,232 Acceptances, letters of credit, and traveler's checks outstanding. J26.674 26,153 1,101 153,928 158,999 Other liabilities 47; 791 5,194 4,210 57,195 44,377 Total. 3,429,044 I 1,702,042 863,738 5,994,824 I 5,938,7 Liability for rediscounts, including those with Federal Reserve Bank 49,306 I 34,845 25,1.40 109.291 I 107,477 Ratio of reserve with Federal Reserve Bank to net deposit liability (per cent) 16.1 i 10.3 7.2 13.3 I 13.2 3 Total cash in vault. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
918 FEDERAL RESERVE BULLETIN. SEPTEMBER 1, 1918. Abstract of reports of condition of all member banks in each Federal Reserve district on June 29, 1918 {including 7,700 national banks and 513 State banks and trust companies). [In thousands of dollars; i. e., 000 omitted.] D N is o t . r i 1 ct D N is o t . r i 2 ct D N is o t . ri 3 ct D N is o t . ri 4 ct D N is o t . ri 5 ct D N is o t . r i 6 ct D N is o t . r i 7 ct D N is o t . ri 8 ct D N is o t . ri 9 ct D N i o s . t r 1 ic 0 t D N i o s . t r 1 ic 1 t D N i o s . t r 1 ic 2 t U S T n t o a i t t t a e e l s d , (416 (687 (647 (776 (543 (407 (1,172 (487 (821 (974 (684 (599 (8,213 banks). banks). banks). banks). banks). banks). banks). banks). banks). _| RESOURCES. Loans and discounts..1,020,960 4.140,419 747,2401,095,108 544,915 420,2721,793,231 514,818 538,867 722,362 392,631 730,93612,661,759 Overdrafts 665566 1,451 335511 11,008877 1,247 897 2,379 768 1,213 2,241 943 1,933 15,166 Customers7 liability account of acceptances and under letters of credit 62,232 204,451 17,765 13,691 11,974 5,938 31,807 10,852 4,163 991 2,381 21,233 387,478 United States securities (exclusive of United States securities borrowed).. 137,782 784,825 171,795 229,824 119,222 111,419 316,534 121,965 79,107 120,773 99,078 157,885 2,450,209 War-savings and thrift stamps actually owned 719 1,150 751 2,175 872 735 2,127 1,378 879 1,324 1,192 1,013 14,315 Stock of Federal Reserve Bank 6,474 20,667 6,937 3,825 3,048| 9,1 3,601 3,529 2,982 4,442 76,699 Other bonds, stocks, etc. (exclusive of securities borrowed) 217,789 964,887 366,950 395,283 84,004 46,39oi 315,727 81,410 52,518 73,439 13,218 120,666 2,732,286 Banking house 28,031 82,614 29,429 50,706 23,155 18,434| 44,912 17,706 14,949 17,189 15,408 23,504 Other real estate 366,037 owned 1,060 12,286 5,203 9,539 2,833 5,730 6,363 2,633 3,790 4,244 7,920 .Furniture and fix- 65,587 tures 1,553 3,146 3,034 3,448 2,496 2,603 5,784 2,197 2,751 3,010 3,087 5,319 Due from banks and 38,428 bankers 157,201 361,792 119,031 198,230 86,364 305,072 84,747 93,279 172,692 69,254 174,305 Exchanges for clear- 1,905,5^35 ing house; also checks on banks in same place 27,993 243,597 32,359 21,952 13,320 51,876 11,027 8,355 16,925 5,379 21,227 463,812 Outside checks and other cash items 6,296 22,907 3,244 3,874 3,289 4,616j 15,115 2,186 4,032 4,629 4,274 5,248 79,710 Cash in vault 37,321 131,619 48,471 21,385 19,048 80, r" 18,725 16,670 26,211 16,152 29,296 482,100 Lawful reserve with Federal Reserve Bank 84,349 757,199 84,107 115,634 44,792 38,514 181,287 51,641 36,510 66,454 35,700 68,960 1,565,147 Items with Federal Reserve Bank in process of collection. 13,170 47,802 28,247 29,959 16,362 7,: 24,854 16,740 1,812 10,350 5,637 6,026 208,244 Due from United States Treasurer.... 3,443 5,564 3,172 5,746 2,739 2,157 5,103 2,256 1,658 2,274 3,113 39,905 Interest earned but not collected 1,241 17,641 1,307 2,351 307 193 1,529 246 770 507 301 1,081 27,474 Other assets 5,566 80,861 1,255 3,871 672 1,555 18,550 505 279 134 438 471 114,157 Total. 1,813,836 7,887,8781,659,153 2,239,511 978,007 785,005 3,212,305 945,401 864,4051,249,684 674,3151,384,578 23,694,078 Capital stock paid in.. 117,233 305,381 91,567 145,124 77,471 62,978 199,638 76,197 62,181 77,738 65,041 100,671 1,381,220 Surplus fund 99,249 355,725 140,198 140,925 51,315 39,075 129,210 44,327 32,383 41,232 35,914 48,239 1,157,792 Undivided profits, less expenses and taxes paid 43,008 129,527J 33,487 46,225 16,880 12,909 50,550| 15,966 12,297 17,078 15,648 22,308 415,883 Interest and discount collected but not earned 1,779 16,435J 1,475 2,475 1,534 918 5,118 1,141 1,278 2,096 1,105J 928 36,282 Amount reserved for taxes accrued 3,324 12,122! 693 1,839 516 819 3,745 1,0301 1,071 1,043 4891 1,200 27,891 Amount reserved for interest accrued 2,103 7,743! 1,257 1,622 1,474 604 1,727 500j 1,193 486 282J 747 19,738 Due to Federal Reserve Bank 373 2,878! 83 240 1,. 190! 149 0 2 80J 115 5,615 Due to banks and . bankers \ 133,9391,420,037 171,521 222,273 96,007 78,119 455,030 150,418! 93,513 225,014 63,554! 167,857 3,278,182 Demand deposits j 917.514 3,;882,417 756,766 941,251 399,816 342,9641,259,750 375,047 321,934 578,844 340,255! 637,11669910,753,727 Time deposits j 20i;575 538,818 256,728 473,401 185,948 142,873 738,392 144,145! 248,509 179,996 54,244j 230,752 3,395,381 United States depos- ; Bi i l t l s s payable with j | 159,125 701,245 90,718 131,481 37,551 34,881 170,208 44,432! 29,345 45,519 21,363; 55,535 1,521,403 Federal Reserve | Bi B lls a nk n ayablo other i | 9,967 123,959; 25,304 15,154 26,513 14,457; ! 61,010 31,877j 15,977 20,247 15,006| 12,946 372,417 than' with Federal Ac R c e e s p e t r a v n e c e B s, a n l k e tters I \ 4,735 19,247j 6,246 5,810 13,211 5, OOlj 8,196 3,774 9,087 10,156 12,584j 9,997 108,G44 of credit, and trav- i elers' cheeks out- 65,831 220,457i 20,325 13,942 12,423 5,947' 32,431 10,860' 4,178 1,056 2,301 22,221 411,972 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
SEPTEMBER 1, 1918. FEDEEAL RESERVE BULLETIN. 919 Abstract of reports of condition of all member banks in each Federal Reserve district on June 29, 1918 {including 7,700 national banks and 513 Stale banks and trust companies—Continued. [In thousands of dollars; i. e., 000 omitted.] I D N is o t . r i 1 ct D N is o t . r i 2 ct D N is o tr . i 3 ct D N is o t . r i 4 ct D N is o t . r i 5 ct D N is o t . r i 6 ct D N is o t . r i 7 ct D N is o t . r i 8 ct D N is o t . r i 9 ct j D N i o st . ri 1 c 0 t j D N i o st . r 1 ic 1 t D N i o s . t r 1 ic 2 t U T n o i t t a e l d , ba ( n 41 k 6 s). (687 ba ( n 6 k 47 s), i ba ( n 77 k 6 s). ; bo ( n 5 k 43 s). ba ( n 40 k 7 s). b ( a 1 n ,1 k 7 s 2 ). ba ( n 48 k 7 s). ba ( n 82 k 1 s), ba ( n 9 k 74 s). ! ba ( n 6 k 8 s 4 ). ba ( n 5 k 9 s 9 ). S (8 ta ,2 t 1 e 3 s banks). LIABILITIES—COntd. National bank notes outstanding 50,449 89,015 55,035- »l,406! 51, 40,416 78,731 41,474 29,278: 46,993! 44,001 61,908 (581,114 Other liabilities 3.032 62,872 7,150! 6,343- 3, HiO 2,254 18,420 4,188 2,181 2,184! 2,448 11,985| 126,817 Total 11,813,8307.887,878:1,059,153j2-, 230,511; 378,007 785,005 3,212,305 945,401 864,40511,249,684| 074,3151,384,578 23,694,078 Liability for redia- j counts, including those with Federal Reserve Bank 64,508 180,308 42,837! 30,988: 46,271 18,805 62,917 36,063! 30,196; 9,711. 21,707 35,069 025,380 i . ! Abstract of reports of condition of all member banks of the Federal Reserve system on June 29, 1918, arranged by classes (including 7,700 national banks and 513 State banks and trust companies). [In thousands of dollars, i. e., 000 omitted.] I Total ci R C b ty a e e ( s n 1 n b e 3 k t a r r 4 s v n a ) e l k . s b s O a e b n r t a v h k n e e s k r c s ( r i 4 ) e t . 5 y - 1 j ' I . C b b ( o 7 a a u , n n 6 n k 2 k t 8 r s s y ), j « b M U S ( a 8 a n t n , a y 1 i k t t 3 e e s 1 2 s d ) 0 , , 1918. 1918. RESOURCES. Loans and discounts 4,482,630 3.783,865 j 4,395,264 12,661,759 12,142,099 Overdrafts 1,384 3,793 i 15,166 14,465 Customers' liability account of acceptances and under letters of credit 238,189 135,279 i 14,010 387,478 419,815 United States securities (exclusive of United States securities borrowed) 744,673 621,135 i 1,084,401 2,450,209 3,196,932 War savings and thrift stamps actually owned 796 3,160 i 10,359 14,315 6,423 Stock of Federal Reserve Bank 21,898 23,223 | 31,778 76,699 75,020 Other bonds, stocks, etc. (exclusive of securities borrowed) 789,759 753,463 ; 1,189,064 2,732,286 2,728,382 Banking house 78,975 124,593 ! 162,469 366,037 361,928 Other real estate owned 10,368 22,608 ! 32,611 65,587 62,633 Furniture and fixtures 1,516 7,140 i 29,772 38,428 37,693 Due from banks and bankers 441,194 757,311 706,760 1,905,565 1,869,708 Exchanges for clearing house, also checks on banks in same place 274,313 148,784 40,715 463,812 835,634 Outside checks and other cash items 24,099 29,410 26,201 79,710 82,058 Gold coin and certificates 50,287 20,432 42,376 113,095 All other cash in vault 92,903 116,047 160,055 369,005 i 574,599 Lawful reserve with Federal Reserve Bank 819,337 385,779 ' 360,031 1,565,147 1,536,296 Items with Federal Reserve Bank in process of collection 66,901 122,719 ! 18,624 208,244 197,718 Due from United States Treasurer '. 4,286 12,113 23,506 39,905 40,803 Interest earned but not collected 16,506 5,307 5,661 27,474 25,668 Other assets 77.293 28,649 '• 8,215 114,157 32,591 Total.. 8; 237,407 7,104,810 ; 8,351,861 | 23,094,078 24,070,465 LIABILITIES. Capital stock paid in 325,200 404.681 551,339 1,381,220 1,367,060 Surplus fund 1 371,290 371,057 415,445 i 1,157,792 1,143,321 Undivided profits, less expenses and taxes paid 124,310 109,665 181,908 ! 415,883 431,455 Interest and discount collected but not earned 19.942 11.093 5,242 i 36,282 33,197 Amount reserved for taxes accrued 14,330 8,747 4,814 ! 27,891 31,042 Amount reserved for interest accrued 7,275 5,159 7,294 • 19,738 31,724 D D u u e e t t o o b F a e n d k e s r a a l n R d e b se a r n v k e e r B s ank A 1,731 1 , ,5 2 2 3 8 1 1,226 1 , , 1 18 9 0 6 31 ' 7 4 , , 7 90 5 7 5 ! ' 3,278 5, , ( 1 5 8 1 2 5 3,34 4 8 , , 7 5 4 0 6 1 Demand deposits 3,926,339 3,077,257 3,750,131 i 10,753,727 11,050,610 Time deposits 421,989 843,545 2,129.8*7 i 3,395,381 3,346,823 United States deposits 77S>3 536.338 2O6',822 '• 1,521,403 1.459,274. Bills payable with Federal Reserve Bank 1J1,548 131,351 99,518 i 372,417 '487,203 Bills payable other than with Federal Reserve Bank 8,206 28,033 72,405 ! 108,844 71,071 Acceptances, letters of credit, and travelers' chocks outstanding. 254,694 142,650 14,028 i 411,972 441,756 National-bank notes outstanding 51,145 177,336 452,633 ! 681,114 679,931 Other liabilities 57,137 30,507 39.173 i 126,817 142,746 Total.. 8,237,407 7,104,810 8,351,861 I 23,694,078 24,070,465 Liability for rediscounts, including those with Federal Reserve Bank 172,800 251,713 ^801~! 6257380 576,685 Ratio of reserve with Federal Reserve Sank to net deposit liability (per cent;). IS. 5 10.9 7.7 I 11.9 11.3 1 Total cash in vault. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
9 20 FEDERAL RESERVE BULLETIN". SEPTEMBES 1, 1918. Classification of loans and discounts of 51S State banks and trust companies, members of Federal Reserve system, as shown by their condition reports for June 29, 1918. [In thousands of dollars, i. e., 000 omitted.] D N i o s . t ri 1 ct D N is o. t ri 2 ct D N is o. t ri 3 ct D N is o. t ri 4 ct D N is o. t ri 5 ct D N is o. t ri 6 ct D N is o. t ri 7 ct D N is o. t ri 8 ct D N is o. t ri 9 c t I I D N i o st . r 1 ic 0 t I I D N i o st . r 1 ic 1 t D N i o s . t ri 1 c 2 t U T n o i t t a e l d (24 (66 (16 (30 (20 (38 (128 (24 (40 ; (16 i (58 (53 banks). banks). banks). banks). banks). banks). banks). banks). banks), banks). I banks). (513 banks). On demand not secured by collateral.. 23,432 47,135 1,621 0,007i 1,261 4,280 13,281 12,183 1,870; 2,198 719 7,347 121,334 On demand secured by Liberty bonds and United States Treasury certificates of indebtedness 2,183 14,1711 1,201 230 328 3,094 1,503 103 5 1,005 24,872 On demand secured by other collateral.. 52,599 417,069 54,772 53,312 8,028 20,218 59,718 36,222 1,112 3,097 974 8,260 715,381 On time not secured by collateral , 140,354 496,983 11,109 59,893 14,229 35,876 197,901 47,678 11,296 15,783 5,318 29,268 1,065,688 On time secured by Liberty bonds and United States Treasury certifi- ! cates of indebtedness 9,467 76,378 2,954 6,853 1,211 1,211 7, 3,247 653 574 507 780 111,736 On time secured by other collateral 46,930 293,636 12,603 37,350 8,079 20,334 102,467 36,957 8,555j 15,665 8,342 15,614 604,532 Secured by real estate mortgages or other j real estate liens or deeds 25,609 44,346 3,567 46,673i 3,511 7,957 102,34 17,201 6,280 6,305 2,124 9,547 275,46 Acceptances of other banks discounted.. 6,403 45,723 4,754 852 C 351 105 92 59 151 236 58,952 Acceptances of this bank purchased or | discounted 1,381 21,501 238 365 53 1,325 365 158 0 0 0 50 25,436 Leans and discounts not classified 0 42,391 310 0 0 2,074 9,729 0 2,553 0 2,981 811 60,849 Total shown by reports 308,3581,499,333 92,914 212,506 34,602 93,954 497,025 155,254 32,514 43,686 21,179 72,924 3,064,249 Less adjustment due to inclusion of rediscounts in loan classification by some banks 1,424 8,078 1,426 288 1,086 1,896 36 3,550 471 995 435 129 19,814 Total loans and discounts.... 306,934j 1,491,255 91,488i 212,218 33,516 92,058 496,989; 151,704 32,043 42,691 20,744 72,795 3,044,435 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
INDEX. Page. Page. Acceptances: Foreign exchange, data obtained in connection Banks granted authority to accept up to 100 per with an investigation made in compliance with a cent of capital and surplus 859 Senate resolution 832-836 Development of the acceptance business dur- Foreign exchange rates: ing 1918 855 Changes in, since outbreak of war 836-840 Distribution of, statement showing 898 Charts showing 841-844 Action of New York Clearing House governing Gold imports and exports 914 clearing and collection of 819-821 Gold settlement fund, transactions through 892-893 Asia Banking Corporation, organization of 818 Hollander, Prof. Jacob H., article by, regarding Banking transactions, plan for obtaining figures holdings by th)e banks of Treasury certificates of showing 821-828 indebtedness 845-847 Broderick, J. A., appointment of, as secretary of Informal rulings of the Board: the Board 817 Warehouse receipts as security 862 Business conditions throughout the Federal Reserve Limitations on loans by member banks 863 districts 873-892 Discount of paper secured by Government Charters issued to national banks during the month. 858 bonds 863 Charts showing changes in foreign exchange rates Interest and discount rates prevailing in various since outbreak of the war 841-844 cities 812-815 Check clearing and col! ection system, operation of.. 894 Law department: Commercial failures reported 856 Notes and bills rediscounted, limitations under Curtailment of nonessentials, progress in 852-855 section 5200, Revised Statutes 867 Department of Labor, index number of wholesale Trade acceptances providing for extension of prices to be furnished by 810-812 time 870 Directors chosen for vacancies in Boston, New Or- Trade acceptances providing for discount if paid leans, and Memphis banks 817 at certain time before maturity 871 Discount operations of the Federal .Reserve Banks 895-901 Drafts secured by cattle loan 871 Discount and interest rates prevailing in various Liability of Railroad Administration for damcities 812-815 ages on bills of lading signed by agents 872 Discount rates in effect 914 Division of Foreign Exchange, rulings by 864-866 iberty bonds: Earnings on investments of Federal Reserve Banks.. 913 Subscriptions, holdings, etc., by savings banks. 856 Federal Reserve Agents' fund, transactions through. 893 List of, lost and recovered. 859-861 Federal Reserve Banks: Loans for relief of banks and individuals in agricul- Earnings on investments of 913 tural districts; statement of War Finance Cor- Resources and liabilities of.. 902-904 poration regarding 828-832 Federal Reserve Board: Member banks: Hon. W. P. G. Harding redesignated as gov- Abstract of reports of condition of 916-920 Statement showing condition of 907-912 ernor of 810 Money, stock of, in the United States 915 Retirement of Hon. P. M. Warburg as member National banks: of 809,816 Charters issued to, during the month 858 Secretaryship of, change in 817 Fiduciary powers granted to 856 Federal Reserve exchange drafts, recommendations New York Clearing House, action of, governing relative to, by representatives of Federal Reserve clearing and collection of acceptances 819-821 Banks 819 Nonessentials, curtailment of, progress in 852-855 Federal Reserve note account of Federal Reserve Resources and liabilities of Federal Reserve Banks. 902 Banks and agents 905-906 Review of the month: Fiduciary powers granted to national banks 856 The fourth Liberty loan 801 Foreign banking corporation organized 818 Treasury certificates of indebtedness 801 Foreign exchange bank, questionnaire relative to, Need of conservation 801 sent out by the chairman of the Senate Committee The reserve situation 802 on Banking 832 Operations of the Federal Reserve Banks 803 i Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
n INDEX. Review of the month—Continued. Silver, price of, fixed at $1.01 J per ounce 818 Conditions of member banks 804 State banks and trust companies admitted to the Call loans on acceptances 805 system during the month 857-858 Acceptance technique 805 Total bank transactions, plan for obtaining figures Interest rates on deposits 806 showing 821-828 Loans for relief of individuals in agricultural Treasury certificates of indebtedness, holdings by regions 806 the banks of 845-847 Policy as to silver 807 War Finance Corporation, statement issued by, rela- Movement of gold 807 tive to loans to individuals in agricultural dis- The trade acceptance situation 808 tricts 828-832 Reports of business conditions 809 War revenue legislation, statement relative to, made Figures for total bank operations 809 before Ways and Means Committee by the Secre- Retirement of Hon. P. M. Warburg 809 tary of the Treasury 847-852 Change in organization 810 Warburg, Hon. P. M., retirement of, as a member of Savings banks, holdings, subscriptions, etc., of the Board 809,816 Liberty bonds by 856 Wholesale prices, plan for furnishing index number Secretary of the Treasury, statement by, before of 810-812 Ways and Means Committee regarding war revenue legislation 847-852 O Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
Cite this document
Federal Reserve (1918, August 31). Federal Reserve Bulletin, 1918-09. Bulletin, Federal Reserve. https://whenthefedspeaks.com/doc/bulletin_191809
@misc{wtfs_bulletin_191809,
author = {Federal Reserve},
title = {Federal Reserve Bulletin, 1918-09},
year = {1918},
month = {Aug},
howpublished = {Bulletin, Federal Reserve},
url = {https://whenthefedspeaks.com/doc/bulletin_191809},
note = {Retrieved via When the Fed Speaks corpus}
}