Federal Reserve Bulletin, 1919-04

FEDERAL RESERVE BULLETIN ISSUED BY THE FEDERAL RESERVE BOARD AT WASHINGTON APRIL, 1919 WASHINGTON GOVERNMENT PRINTING OFFICE 1919 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FEDERAL RESERVE BOARD. EX OFFICIO MEMBEES. W. P. G. HARDING, Governor. CABTEB GLASS, ALBERT STRAUSS, Vice Governor. Secretary of the Treasury, Chairman. ADOLPH 0. MILLEB. JOHN SKELTON WILLIAMS, CHABLES S. HAMLIN. Comptroller of the Currency. J. A. BBODEEICK, Secretary. GEOBGE L. HARBISON, General Counsel. W. T. CHAPMAN, Assistant Secretary. H. PABKEB WILLIS, Director, Division of Analysis and Research. W. M. IMLAY, Fiscal Agent. F. I. KENT, M. JAGOBSON, Statistician. Director, Division of Foreign Exchange. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

SUBSCRIPTION PRICE OF BULLETIN. The Federal Reserve Bulletin is distributed without charge to member banks of the system and to the officers and directors of Federal Reserve Banks. In sending the Bulletin to others the Board feels that a subscription should be required. It has accordingly fixed a subscription price of $2 per annum. Single copies will be sold at 20 cents. Foreign postage should be added when it will be required. Remittances should be made to the Federal Reserve Board. Member banks desiring to have the Bulletin supplied to their officers and directors'may have it sent to not less than ten names at a subscription price of $1 per annum. No complete sets of the Bulletin for 1915, 1916, or 1917 are available. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

TABLE OF CONTENTS. Review of the month 303 Business and financial conditions during March 314 Bank credits in war (from London Economist) 323 Condition of Federal Reserve Banks covering period during floating of fourth Liberty loan 324 Liquidating the war paper of member banks 325 Extension of conversion privilege to first Liberty loan 329 Indexes of business conditions 331 Increase in the production of raw materials. 1913-1918 336 War operations of the Bank of France 337 Law renewing the charter of the Bank of France 339 Statement of organization and purpose of new Industrial Board of the Department of Commerce 341 Practice of handling bills of exchange in foreign countries 345 Banks granted authority to accept up to 100 per cent of capital and surplus 357 Foreign branches of national banks 357 State banks and trust companies admitted to system during the month 358 Charters -issued to national banks during the month 358 Commercial failures reported 359 Fiduciary powers granted to national banks 359 Rulings of the Federal Reserve Board '. 361 Law Department 363 Bank transactions during February and March 369 Index of wholesale prices 372 Discount and interest rates prevailing in various cities .-• 376 Physical volume of trade 379 Number of member banks in system, number of members discounting, and average discounts held by each Federal Reserve Bank, 1917-1919 386 Chart showing 387 Discount and open market operations of the Federal Reserve Banks 388 Resources and liabilities of the Federal Reserve Banks 393 Federal Reserve note account oil the Federal Reserve Banks and agents 397 Member bank condition statement 399 Imports and exports of gold and silver 403 Estimated stock of money in the United States 404 Discount rates in effect. -. . - 404 Operation of the Federal Reserve clearing system 405 Loans and discounts of State bank members 406 IV Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FEDERAL RESERVE BULLETIN VOL. 5 APRIL i, 1919. No. 4 REVIEW OF THE MONTH. mature on May 20, 1923. Interest will be payable on December 15, 1919, and thereafter The publication of the current issue of the semiannually on June 15 and December 15, FEDERAL RESERVE BULLETIN and at maturity. All or any of the notes may fifSTLTbert^loanf has been deferred for some days be redeemed before maturity at the option of in order to include in it the offithe United States on June 15 or December 15, cial statement of the Secretary7 of the Treasury, 1922, at par and accrued interest. concerning the fifth, or Victory Liberty loan. "In fixing the terms of the issue, the Treas- The exact terms and conditions under which ury has been guided largely by the desire to the new loan is to be offered were made public devise a security which will not only prove by the Secretary of the Treasury in a statement attractive to the people of the country in the issued on April 13 in the following language: first instance, but the terms of which should "The Victory Liberty loan, which will be insure a good market for the notes after the offered for popular subscription on April 21, campaign is over and identical prices for the will take the form of 4| per cent three-four two series, and should not affect injuriously the j^ear convertible gold notes of the United market for the existing bonds of the Liberty States, exempt from State and local taxes, loans. except estate and inheritance taxes, and from normal Federal income taxes. The notes will 1' This will be the las t Liberty loan. Although,, be convertible, at the option of the holder, as the remaining war bills are presented, furthroughout their life into 3f per cent three- ther borrowing must be done, I anticipate that four year convertible gold notes of the United the requirements of the Government in excess States, exempt from all Federal, State, and of the amount of taxes and other income can, local taxes, except estate and inheritance in view of the decreasing scale of expenditure, taxes. In like manner the 3f per cent notes be readily financed by the issue of Treasury will be convertible into the 4f per cent notes. certificates from time to time as heretofore, "The amount of the issue will be$4,500,- which may be ultimately refunded by the issue 000,000, which, with the deferred installments of notes or bonds without the aid of another of income and profits taxes payable, in respect great popular campaign, such as has characto last year's income and profits, during the terized the Liberty loans. period covered by the maturity dates of "I am sure that the people of America will Treasury certificates of indebtedness now out- subscribe to this Victory loan in the same standing, will fully provide for the retirement spirit of patriotism which they have shown in of such certificates. The issue will be limited the past to the end that the notes may be as to $4,500,000,000, except as it may be neces- widely distributed as possible, and that our sary to increase or decrease the amount to banking institutions may be left free to supply facilitate allotment. Oversubscriptions will be the credit necessary for the purpose of industry rejected and allotments made on a graduated and commerce and the full employment of scale similar in its general plan to that adopted labor. Let the world see that the patriots of in connection with the first Liberty loan. America, out of their boundless resources, and Allotment will be made in full on subscrip- with the same enthusiasm and devotion to tions up to and including $10,000. country with which they prosecuted the war "The notes of both series will be dated and to a victorious conclusion, are determined to bearlinterest from May 20, 1919, and will finish the job." 303 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

304 FEDERAL RESERVE BULLETIN. APRIL 1, 1919. So clearly are the terms and conditions of the the individual buyer than has been true of any new issue set forth in the state- of the preceding Liberty loans. ent Just <luoted that com" The financial situation which has called ment would seem to be called forth the new offering of notes for with respect only to one or two points in °f is so weli known that only a connection with the announcement. Of these very general description of the the most important is probably the character circumstances attendant upon the placing of of the new offering as an issue of "notes'7 this loan need be furnished. The Treasury rather than of " bonds." has, from the beginning of December last to The new notes, under the terms which have the end of the month of March, issued in been fixed by the Secretary of the Treasury, certificates of indebtedness intended to anticiare to run for not over four years. Practically, pate the proceeds of this flotation approxitherefore, the difference between the old and mately $4,700,000,000, after deducting exthe new issues is that while the Government changes and redemptions. These obligations must redeem or refund the notes after a given run five months from their date of issue. period it might or might not, at its option, At the present time the expenditures of refund the older issues. There is evidently the Treasury are running at the rate of no warrant whatever for the view that the about $1,300,000,000 per month, a figure notes are essentially a different kind of in- decidedly less than the rate of expenditure in yestment or are to be regarded in some January and about the same as that which special or peculiar way as contrasted with was established during February. The exact the bonds. They are like the latter Govern- outlay for March has been $1,379,811,785. ment obligations, while the period of their life Estimated expenditures up to the end of this is entirely sufficient to warrant the ordinary fiscal year will bring the outlay for the fiscal investor in putting his funds into them. Inyear as a whole to about $18,000,000,000 deed, as is well known, before the war one or $19,000,000,000, of which sum there had of the most important conservative investbeen expended up to the end of March ments in the money market of the United $15,164,224,227. Congress has in the mean- States was offered by a series of short-term time adopted legislation designed to afford notes issued by railroads and public-service cornew sources of revenue from taxation, the porations. These had become a favorite infirst installment of which was turned into vestment with discriminating buyers, their mathe Treasury on March 15. This legislation, turity being from one to four years, the prehowever, will not suffice to meet the requireferred life as a rule not exceeding two or three ments of the Department, as the figures already years. When the investor purchases a Govfurnished amply show. In the following table ernment note with a maturity of five years he are furnished details concerning the issues of has the assurance that the obligation thus purcertificates of indebtedness which have been chased will possess greater stability of value placed in the hands of the banks in anticipathan could possibly be given by any bond whose tion of the fifth Liberty loan. maturity is long or which is subject to the possibility of redemption after a specified Series dated: period, but which has no definite or positive Dec. 5, 1918 $613,438,000 claim for such redemption upon the maker or Dec. 19, 1918 572,494,000 Jan. 2, 1919 751,684,500 issuer of such bonds. Far from its being true, Jan. 16, 1919 600,101,500 therefore, that the new "notes" are not well Jan. 30, 1919 687, 381, 500 adapted to private subscription, they are 4 Feb. 13, 1919 620,578,500 eminently so adapted, while the conditions Feb. 27, 1919 532,381,500 under which they are to be issued should Mar. 13, 1919 542,197,000 bring them much closer to the requirements of Total 4, 920,256, 500 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

APBII* 1,1919. FEDERAL RESERVE BULLETIN. 305 The policy of issuing short-term certificates occurrence if the people of the United States of indebtedness was resorted failed to take these notes, thus placing the burden of subscriptions on the banks. The °f CeF" t0 bF the Treas™7 Department business of the country looks to the banking early in the war at a time when system for credit wherewith to carry on its the needs of the Government were exceptionally operations, and if this credit is absorbed to a urgent and unexpected in character. They large extent by the purchase of Government securities, there will be many limitations placed have served their purpose well as a means of upon the supply of credit for business purposes. supplying the Treasury without delay with Our merchants and manufacturers need ample the funds of which it stood in need. In so credit for setting the wheels of industry in doing, however, the certificate policy has motion for peace-time production and distribunecessarily placed upon the banks the necessity tion, and the wage earner is directly interested in seeing that these wheels are kept moving at a of bearing a continuing burden of war securnormal rate in order that full employment at ities. This burden was, of course, at a minigood wages may continue, and where readjustmum immediately after the conclusion of a ment conditions have necessitated a slowing Liberty loan, inasmuch as at that time at least down of industry, it is vitally important that a considerable part of the new bonds had been activity be resumed and labor reemployed at the earliest possible moment." sold to the public and the certificates to that extent "funded." In so far, of course, as a It should be understood that under the plan Liberty loan did not result in inducing the of financing which has been pursued by the public actually to take over and pay for the Government since the entry of the United new bonds, the banks instead of carrying the States into the war, the direct source from short-term certificates of the Government now which public funds are drawn is the commercial carried the paper at whatever date maturing, banks of the country. Precisely this same which had been made by their clients for the situation exists in the case of the fifth loan, and purpose of enabling themselves to subscribe precisely the same obligation rests upon the for bonds. Inasmuch as the process of bor- community to participate in the purchase and rowing by the Government against certificates absorption of the bonds needed for the funding has almost invariably been begun within a very of the certificates. During the continuance short time after the completion of a Liberty of the war there was, of course, the impetus loan, there has been steadily in the hands of growing out of the belief that subscriptions the banks a varying quantity of certificates made in this way were necessary for the purwhich has increased as the date of flotation pose of aiding in the immediate maintenance of of each Liberty loan drew nearer, thereafter the armies in the field. The Government still to be technically reduced by the public through has strong military forces in the process of borrowing at the banks for the Government ** EuroPe engaged in the impurpose of absorbing the bonds. The neces- portant and necessary work of sity of general public subscription as an indis- completing our operations there. The oblipensable element in the process of financing gations which have been met since the openthus becomes apparent. ing of the year and are still to be liquidated The Secretary of the Treasury, in a state- are those which remain subsequent to the ment issued on March 12, expressed the opinion conclusion of the war, and which reprethat it is urgently necessary that these notes sent the obligations or indebtedness incurred should be given as wide a distribution as for the conduct of the struggle. Essenpossible, saying: tially, however, the reason why the public should subscribe for and take up the securities "I take this opportunity to repeat what I offered in one of these great periodical loans is have already stated, that it is the intention of that of self-interest. If the obligations already the Treasury Department to carry on the same kind of intensive campaign for distribution as taken by the banks are not liquidated, the heretofore. It would be a most unfortunate community at large will suffer from a continued Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

306 FEDERAL RESERVE BULLETIN. APRIL 1, 1019. inflation of banking credit and from the high banks. Treasury certificates held at the close prices that are consequent upon this condition of the past year by all member banks totaled of affairs. Only one remedy for the situation 1,303 millions, of which 321 millions represent now existing can be applied—that, namely, of the holdings of nonnational members. subscribing freely for the Government obliga- Loans upon the security of Liberty bonds and tions when offered and of paying for them out Treasury certificates carried by member banks of the proceeds of saving, either already accu- at the close of the year aggregated 1,402 mulated or to be accumulated from time to millions, of which 345 millions, or about 25 time. Indeed, the urgency for adherence to per cent, are shown for member institutions this policy is greater now than it was during other than national banks. Most of these the war, inasmuch as at that time there was loans are secured by Liberty bonds. For the strict oversight and control on the part of the national banks the Comptroller shows 1,020 Government over production, distribution, and, millions loaned on Liberty bonds and 37 in a measure, consumption, while at present millions on Treasury certificates, which that oversight has naturally and properly been together constitute about 10.6 per cent of the greatly relaxed or, in many branches of business total loans and discounts of the national banks entirely abolished. The responsibility of saving reported for the end of 1918. For the other and conserving resources thus remains with member banks this percentage works out at those who are the recipients of current in- 9.5 per cent. The total of these loans (socomes, either from investments or from salaries called war paper) is exclusive of approximately and wages, in perhaps a higher degree than 360 millions, the amount of war paper held was previously true. under rediscount on December 31, 1918, by Neglect on the part of the public fully to the Federal Reserve Banks. It thus appears appreciate and fully to perform that at the end of 1918 the member banks held The banking ^ ^y j taking up and pa}~- about 4,300 millions of their invested funds in g n ing for the forthcoming Victory the shape of United States war obligations and note issue would have a very prejudicial effect war paper, or more than 20 per cent of the upon the banking position by aggravating the 20,525 millions of their total loans and investstate of credit expansion which already exists. ments (otjier than fixed investments) reported With a view to ascertaining the exact facts at the close of the past year. in the situation the Board directed a statistical It must be remembered that this showing inquiry into conditions, which resulted in a relates to the condition of affairs at the close statement issued to the public on March 10, of last year (1918). Since that time there have that refers to the condition of the banks of been sold and placed in the hands of the banks the country, both Federal Reserve and mem- about $3,734,424,500 of certificates of indebtber, in this regard. These figures show that edness in anticipation of the fifth loan. the banks are already carrying a large amount A considerable portion of these certificates of so-called "war paper." At the end of 1918 has been used for rediscounting with the the condition reports of 7,762 national and 930 Federal Reserve Banks. About $1,600,- State member banks and trust companies 000,000 of the fourth loan certificates were reshowed that loans and discounts (including tired during January of the present year, and overdrafts) were 13,562 millions, of which 3,634 about $800,000,000 of tax certificates were millions, or 27 per cent, represent loans and dis- taken up about March 15, so that the situation counts of trust company and State bank mem- set forth in the Board's inquiry is changed corbers. Among the total investments reported, respondingly. The volume of war loan paper United States Liberty bonds figure to the ex- in the banks at the present time thus shows but tent of about 1,589 millions, of which 375 mil- little indication of self-liquidation, a factor lions are reported by the member nonnational which must be carefully considered in connec- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

APKIL 1,1919. FEDERAL RESERVE BULLETIN. 307 tion with the prospects of the great Govern- of the same problem as heretofore in connecment loan which is now in contemplation. tion with its program of borrowing and expen- A new factor has been brought into the cur- diture. rent financial and banking sit- A special phase of the problem of Governfin"uation hy the fact that on ment financing as currently March 15 the first installment Presented is that of supplying of the proceeds of income taxation was turned the immediate necessities of into the Treasury Department in accordance the Railroad Administration. Owing to the with the requirements of the War Revenue fact that Congress did not finally act upon the Act of February 26. By the terms of that law appropriation of $750,000,000, which had been payments of income taxation are now permitted proposed for the use of the railroads, and to be made in four equal quarterly install- which had passed the House and had been ments, falling due on March 15, June 15, favorably reported by the committee of the September 15, and December 15. The first Senate in charge of it, it has become necessary installment is now reported as having to devise some alternative method of meeting amounted to approximately $1,001,000,000. the necessities of the railroads. Director This is currently accepted as equivalent to General Hines, of the Railroad Administration, about one-quarter of the total return to be addressing the conference of the governors of expected, but is probably in excess of that the Federal Reserve Banks with the Federal figure. While probably the large majority of Reserve Board held at Washington, March individuals and corporations will prefer to take 20-22, gave a complete review of the situation advantage of the installment method of pay- produced by the failure of Congress to enact ment, there are not a few who are following legislation providing the new funds required the custom of former years of paying in lump for coming months. He stated that between sum. Such payments tend relatively to reduce now and July 31 next there would be required the payments to be received at subsequent by railroad companies to pay interest and installment periods. There is no means of dividends approximately 266 millions; to pay estimating with accuracy the total return on for equipment, 258 millions; to pay for securithe basis of the installment of March 15, unless ties now maturing, 119 millions. While it is it be assumed that this installment is roughly not necessary to have all of these funds at equal to one-quarter of the total, in which once, there were required on April 1, 63 millions case the gross income from the income, corpo- for interest and dividends and 74 millions ration and excess profits taxes will amount to to pay for equipment already delivered and not more than $4,000,000,000. The moneys to be delivered by April 1, an approximate received on March 15 served to liquidate issues total of 137 millions. The Director General of certificates of indebtedness which were fall- stated that for funds due to the railroad ing due on that date and consequently simply companies for interest and dividend charges to transfer a specified amount of bank credit on April 1 he had considered the issue of from one group in the community to another certificates of indebtedness signed by the through the medium, first, of tax payments Director General, these certificates to bear to the Government, and then liquidating pay- interest and be available as collateral upon ments made to meet its outstanding certifi- which railroads might borrow such funds as cates. Inasmuch as practically $800,000,000 they require, the War Finance Corporation to of the March 15 receipts were thus absorbed furnish funds where railroads are unable to in settling maturing claims, the first tax pay- borrow elsewhere. Attempts had been made ment leaves the Treasury in about the same to deal with the situation only up to April 1, position as before, so far as current payments with the idea that as result of experience gained are concerned, and it must therefore dispose the Railroad Administration would be in better Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

308 FEDERAL, RESERVE BULLETIN. APRIL 1,1919. position to adopt sound policy for subsequent to be made of the funds thus obtained, it was requirements. generally understood that they might be While suggestions have from time to time utilized for any of the purposes for which the appeared that the needs of the Railroad Ad- corporation was organized. Besides the finanministration might properly be met by means cial requirements of the railways, which have of acceptances drawn by equipment manu- been noted above, and local public utilities, facturers and others upon the Railroad Ad- which have latterly been the subject of much ministration, the conclusion arrived at, after discussion, the extension of credit in aid of the conferences between the Director General of export trade by the War Finance Corporation Railroads, the Secretary of the Treasury, and seems a likely development in the expansion of the Federal Reserve Board, was that this its activities. The promotion of the export would not be the best method of procedure trade by means of long-term credits has been and that the needs of the railroads should be much discussed since the adoption by Congress handled through the agency of the War of the Victory Liberty Loan Act of March 3, Finance Corporation. The problem of financ- in which provision was made for the extension ing the railroads has thus become a War of credits " for periods not exceeding five years " Finance Corporation matter, the method pro- in amount not to exceed " the sum of one billion posed for handling the situation being that of dollars" either to any person or corporation the issuance of certificates of indebtedness, to engaged in exporting the domestic products of be given to the equipment companies and the United States or to any bank or trust comothers by the Director General of Railroads, pany which extends assistance to such an these to be used as collateral or protection of exporter. such advances as may be made by the War It is to be noted that the Federal Reserve Finance Corporation or others. The Director Banks are authorized by a provision of the War General of Railroads has issued a statement Finance Corporation Act, and subject to the on this topic in which he says: maturity limitations of the Federal Reserve "The plan announced by the Director Gen- Act and regulations of the Federal Reserve eral is that the Railroad Administration will Board, to discount obligations of member banks issue its certificates of indebtedness to the rail- secured by bonds of the War Finance Corporaroad corporations for amounts due on account tion and to rediscount eligible paper secured by of rental and other transactions arising out of Federal control. It is estimated that the the bonds and indorsed by a member bank. amount of the April 1 requirements will be No such discount or rediscount, however, may approximately $70,000,000. be at an interest charge less than 1 per cent per "The War Finance Corporation announces annum above the prevailing rate for eligible that it is prepared to receive applications from commercial paper of corresponding maturity. the railroads for advances for their April 1 requirements on the security of certificates of During the month of March there has been indebtedness issued by the Director General. further effort on the part of "Consideration is still being given by the Private financ- business to adjust itself to the Director General as to the method to be ing. new requirements of peace adopted for meeting obligations due from the through the reintroduction of methods of Railroad Administration to equipment companies. An announcement on this subject will private financing. The gradual withdrawal of be made in the near future." the Government from the market as the lead- The War Finance Corporation on April 2 ing buyer has helped this movement. Methods offered for subscription through of financing which were developing during the Finance Corpo- i g t the Federal latter part of the war in connection with the m itg fisca a en S; ration issue. Regerve Bankgj $2 00,000,000 heavy purchases of the Government are giving one-year 5 per cent bonds. While no official way to ordinary banking methods of financing. statement was made with reference to the use Renewed purchases of commercial paper by Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

APRIL 1, 1919. FEDERAL RESERVE BULLETIN. 309 banks are reported, while not a few institutions Belgian banks are directly pledged to protect are stated to be considering the best methods the loan. The credit, as already stated, has to be followed in the use of their fluid funds taken the form of acceptances distributed when short-term Treasury certificates of in- among a considerable number of banks and to debtedness shall be withdrawn from the market. be discounted by members of the group after The volume of funds available for private acceptance has been furnished. The drafts are industrial enterprises has seemed to be reason- to run 90 days, with arrangements for three ably satisfactory, although rates have been renewals, so that in effect the operation has a kept at a tolerably high level as a result of the maturity of a year. These provisions are conservatism of bankers who desire to avoid the practically in line with those which had already development of any cramped position which been established in other connections to govern might result from the demands of the Govern- the so-called "renewal acceptances" of past ment during the progress of the fifth loan. years. The Board, therefore, has not, as While the Government is still supporting the stated in some quarters, developed any new export trade in no inconsiderable degree, it is policy in connection with the discounting of noteworthy that a substantial percentage of the drafts of this character, but its attitude in the new financing now in progress is intended for matter remains unchanged and is governed by the purpose of facilitating the movement of the general instructions on the subject sent goods to foreign countries. These credits are out in the beginning of the year 1918 and since taking the form in many instances of accept- then somewhat expanded for the purpose of ances, while in others they are simply ordinary meeting special conditions as they presented advances designed to sustain business which is themselves from time to time. It has been sugbeing developed for export account. gested that similar acceptance credits be placed It was announced on March 15 that the syn- on behalf of other countries which are in need of Completion of dicate of bankers which had had funds for similar purposes. The Board's posi- Belgian industrial in charge the placing of the so- tion, as already developed, has been that operacredit. called Belgian industrial credit tions of this kind under the general description of had succeeded in completing their transactions "acceptances77 should be subjected to reasonable and in closing the allotments. This credit is limitation and should not be extended to an of especial interest because it represents the extent which would result in placing in bank first actual industrial borrowing in the United portfolios too large an amount of nonliquid States obtained through the regular mechanism paper having a fairly distant maturity. While of the ordinary discount market for the purpose the Board recognizes that in the present unusual of European reconstruction since the conclusion circumstances of the financial world some relaxof the war. The industrial credit in question ation of usual safeguards may be unavoidable;, was distributed by a group of banks which had nevertheless it believes that every reasonable joined hands for the purpose of making accept- precaution should be taken to prevent the undue ances in favor of a consortium or group of accumulation of paper subject to renewal. Belgian banks which, through the National The development of the past month in regard Bank of Belgium, had applied for accommoda- Federal Reserve to the condition of Federal Retion to the extent mentioned. This accom- and member serve Banks has been an inmodation when released will be used for the banks. crease of holdings of war paper purpose of the rehabilitation of Belgian indus- and a decline in ordinary paper and accepttrial districts, and it is the understanding that ances, the total being $491,900,000 on February such indemnity proceeds as may be obtained 20, and on March 21 $451,700,000, or a decline from Germany will, if available, be used for of $40,100,000. These holdings rose at the the purpose of liquidating the obligation under Federal Reserve Banks from 1,596 millions on this credit. In any event, the resources of the February 20 to 1,691 millions on March 21 y Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

310 FEDERAL RESERVE BULLETIN. APRIL 1,1919. while at reporting member banks certificate securities of all kinds continue to rest in any holdings rose by about 500 millions over the very considerable figure in the hands of the 1,743 millions held on February 21. Offsetting banks. It is therefore strongly to the interest these increases there has been some slight liqui- of the public that as rapidly as possible such dation in United States bonds and in loans se- war loan paper should be eliminated from the cured by Government obligations at member banks. In the annual reports of Federal Rebanks. The general trend of loans and invest- serve agents, published as section 2 of the ments has been upward, both at Federal Re- Board's fifth annual report, will be found disserve and member banks, but acceptance hold- cussions of the length of time required for ings have declined. The gold reserves of the the elimination of this war paper from bank Federal Reserve Banks have increased from portfolios. From this it will be noted that in 2,125 to 2,140 millions, while net deposits have the majority of cases there is an expectation increased from 1,730 to 1,768 millions. At the that the banks may relieve themselves of the member banks there has been an increase in bulk of their war loan advances within a period Government deposits following the certificate of eight or nine months after the conclusion of issues, while other demand deposits have also the fifth Liberty loan campaign. Whether risen very materially, reaching a high-water these predictions are oversanguine or not only mark on March 14 of 10,311 millions. There the future can show. It is certainly in the has also been a slight decline of reserve balances general interest tnat the process of eliminating at the Federal Reserve Banks. These changes war paper proceed as rapidly as is thus exare incident to the general course of public pected. In proportion as such elimination financing anticipatory of the placing of the occurs the ground will be prepared for future fifth Liberty loan, and apparently indicate no progress toward the restoration of prices to material changes in the condition of the com- their eventual basis and therewith the " readmercial banks of the country. The restriction. justment " of business to peace conditions, of business has resulted in an increasing decline which is being so anxiously watched by the in current commercial demands for accommoda- industrial community. tion, but funds have been in good supply, and at During the past few weeks two changes in reasonable rates for all ordinary requirements. bank statements which are well The point at which the. process of war financ- Rediscounts and , i <• , • i , ,.„ ,, worthy ol notice have occurred. ing still continues to touch the Price situation. public most closely is in con- bills payable. J . . . 1 he one is the addition to the nection with current prices of commodities. weekly statement of the New York Clearing There continues to be a noticeable recession in House banks of the item "Bills payable, acthe general level of wholesale prices. This receptances, and other liabilities," an item which cession aggregated probably about 10 points covers rediscounts at Federal Reserve Banks up to the first of March from the high level or and is probably largely composed of such redis- "peak" which had been reached during the counts. The other change has been introduced war period prior to the armistice. During the by the Board itself and consists of the addition month of March itself but little further recesto the weekly Federal Reserve Board statement sion has been noted. The aggregate recession of an item showing rediscounts between Fedis in any case relatively small and current eral Reserve Banks. The new "bills payable" reports seem to show that the downward item in the New York Clearing House statemovement of prices has either been arrested ment now amounts to close to $900,000,000, or is at least losing speed. In fact, complete while the interbank rediscounts shown on the restoration of prices to their eventual normal Federal Reserve Board's weekly statement are basis, whatever that may be, can not be about $70,000,000. It is expected that as expected to occur so long as the war loan time goes on the reporting of this item of bills payable will be adopted as a practice by other Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

APEIL 1,1919. FEDERAL RESERVE BULLETIN. 311 clearing houses and that each member will The action was described at the time as "simply probably be called upon to make a separate another step of the kind all Governments have statement thereof. Already some well-man- been taking designed to permit business to reaged member banks are showing in their state- sume its normal course." The Federal Rements the extent to which they are in debt to serve Board, on March 19, issued the following Federal Reserve Banks. It has been the statement: "All restrictions as to the sale or opinion of the Board that the borrowings of purchase of lira exchange by dealers as demember banks at Federal Reserve Banks scribed in the Executive order of the President might very easily be carried to excess, the loans of January 26, 1918, are hereby removed until being placed there primarily for the purpose of otherwise instructed." These announcements profit and not for any more general public or were equivalent to the withdrawal of Governfundamental object. In a general letter to ment support for the stabilized or artificial banks, issued on November 19, and referred to in rates of exchange which had heretofore prethe FEDERAL RESERVE BULLETIN for December, vailed in the New York market for sterling and the Board took occasion to caution member lire. The effect of these measures was a banks which it thought were in some danger of marked decline in both branches of the foreign overdoing their rediscounting, that the purpose exchange market. Up to about the olose of of such rediscount operations was not primarily March the following quotations were registered: that of assisting the member institutions which Range. placed the rediscount to obtain the funds for Sterling checks 4. 75H @ 4.58 further profitable operations, but was rather to Cables 4. 76^ @ 4. 59 Paris checks 5. 71 @ 6. 03 be determined upon the basis of general bank- Cables 5.69 @ 6.02 ing advantage or upon that of relief for banks Antwerp checks 5.98 @ 6.22 which found themselves hard pressed or were Cables 5.96 @ 6.20 suffering from reductions in reserve account. Lirechecks 6.36 "@ 7.70 This point of view should be again emphasized, Cables 6.35 @ 7.65 particularly at a time when the taxation and Pesetas checks 20. 50 @ 20.15 Cables 20. 62* @ 29.25 borrowing requirements of the Public Treasury are likely to call for the utmost conservation of These changes in the situation of exchange resources and the use of the greatest judgment mark the beginning of a new and care in the making of new obligations. It eriocTW nanCia period in international finance. is therefore encouraging that the more progress- The withdrawal of Government ive banks of the country are already scrutiniz- support in important branches of exchange is ing carefully one another's rediscount opera- equivalent to a statement that henceforth the tions and that they are inclined to attribute movement of commodities for private account considerable importance to the matter of get- between the United States and other countries ting " clean " or free of outstanding claims upon must be financed on some basis other than that them, which might prove troublesome and of Government guaranty. In normal times the which in any case represent drafts upon the gen- decline of exchange occurs in countries aderal fund of fluid resources of the community. versely affected by an unfavorable balance of During the month of March important trade. The effect of such an adverse balance developments occurred which is to depress the rate of exchange and thus to Suspension of f . aching modifica- raise the price of imported commodities in the duce arre exchange control. \ _ _ . . ° _ country which is suffering from a fall of extions of the foreign exchange change and a tendency is thus automatically situation. On March 18 it was announced on set up to restrict further excessive buying by behalf of the British Government that instruc- importers. Great Britain has already found it tions had been received "to suspend purchases necessary to adopt strong measures to prevent of sterling exchange for Government account." Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

312 FEDERAL RESERVE BULLETIN. APRIL 1, 1919. further importations of commodities and the the situation is that our payments to France, withdrawal of support for sterling will tend to both through Government loans and through make these restrictions still further effective. disbursements for the Army on the spot, have The same situation will probably exist in an greatly fallen off. New credits opened by the even more marked degree with respect to im- United States Treasury to the French Governportations from the United States into Italy. ment since the armistice and up to the end of All these conditions must necessarily exert an March amount to only $285,000,000, while the Important effect upon our export trade. In- withdrawal of fully half of our troops and their deed, the extent to which we can now export transfer back to the United States has correto foreign countries which have lately been spondingly decreased the amount expended belligerent will depend upon their ability to for soldiers' pay and expenses. France has finance their own needs, or to obtain adequate not and will not for some time to come be in assistance in such financing from American a position to export effectively, and the destrucbanks and bankers. Undoubtedly such assist- tion of much of her northern industrial region, ance will be forthcoming in considerable meas- and the disorganization of other producing ure, but it can hardly be expected that so sections, as well as the delay caused by the tremendous a flow of goods out of the United necessity of converting her war plants to peace States will be maintained as has been true for uses, will necessarily retard still further the a long time past, giving us during the years development of her power to" ship salable 1916-1918 a favorable merchandise balance of goods. France must therefore contemplate about $9,000,000,000. So far as it is thus for a considerable time to come a situation in maintained, the result will be accomplished which she must either purchase less abroad or only through action on the part of Americans must expect in the absence of artificial control looking to the purpose of financing foreign an unfavorable state of the exchanges. The rebuyers in their purchases. This, in other moval of the restrictions by France upon the words, means that the United States, in order movement of gold would involve the shipment to continue as a great exporter, must also out of the country of a considerable volume of the continue as a great investor in foreign countries, metal for the purpose of equalizing exchanges, and that to the extent she is able to do so her and this makes it less probable that there will selling power will be correspondingly developed be such a restoration of the free movement of and sustained. It must soon become a ques- gold in the immediate future. tion, therefore, through what agency and meth- From the standpoint of the United States, ods the American investor can best be reached the continuance of large exports of grain and in entering the field of foreign investment. foodstuffs which have kept the record of A special situation had developed early in January, February, and the early part of March in connection with March fully up to that of any corresponding French ex- French exchange. The most period in the past, means that foreign countries change situation. striking feature of these occur- will be under the continued necessity of finding rences was a marked decline in the international satisfactory means of settling with the United value of the franc—French francs being quoted States for goods which they are not in position on March 18 at 5.80 per dollar, since when the to offset by means of corresponding exports quotation has fallen below 6 francs. The to the United States. This suggests that the decline of the French franc has been variously exchange problem may become more pressing. .attributed to developments in connection with Both it and the question of gold embargoes French Government financing, to a deliberate will need to be considered at an early date. ^relaxation of the control or "pegging" of Meantime, it is worth while to note that the French exchange by the Government of Treasury still has limited powers of extending France, and to other factors. The truth of financial accommodation to foreign countries. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

APRIL 1,1919. FEDERAL RESERVE BULLETIN. 313 During the month ending March 10 the net connected with the financing and development inward movement of gold was of the Federal Reserve System. Special atand ex ortimP°rtS $3,879,000, as compared with tention was given to the question of discount P a net outward movement of and interest rates and to railroad financing. $2,125,000 for the month ending February 10. The current announcement of withdrawal of The gain in the country's stock of gold since Government control of exchange rates led to August 1, 1914, was $1,073,330,000, as may be a thorough interchange of views regarding the seen from the following exhibit: international situation produced by this change of policy, and to a discussion of the question of [In thousands of dollars; i. e., 000 omitted.] gold embargoes. Various internal problems Excess relating to the operations of the Federal Reimports Imports. Exports. over serve Banks were also considered. There was exports. also an exchange of views relating to the forth- Aug. lto Dec. 31, 1914 23,253 104,972 181,719 coming Victory loan and related questions, Jan. lto Dec. 31,1915 451,955 31,426 420,529 Jan. 1 to Dec. 31,1916 685,745 155,793 529,952 but it did not appear that there would grow Jan. lto Dec.31,1917 553,713 372,171 181,542 Jan. 1 to Dec. 31,1918 61,950 40,848 21,102 out of the meeting any recommendations look- Jim. 1 to Mar. 10,1919 9,137 7,213 1,924 Total 1,785,753 712,423 1,073,330 ing to an immediate change of discount policy. Among other matters discussed was that of * Excess of exports over imports. permanent quarters for Federal Reserve Banks. Of the gold imports for the month, amounting Several of the banks have acquired properties to $6,501,000, receipts of $5,000,000 came from upon which they will either construct new Hongkong, the remainder coming largely from buildings or remodel existing structures, but Canada and Mexico. Gold exports amounting no definite action was taken in this respect, to $2,622,000 were consigned chiefly to Vene- and the Board will not undertake to approve zuela, Mexico, and Colombia. plans in this connection until the needs of the On March 20-22 occurred a three-day con- several banks have been more carefully studied ference in Washington between and analyzed. To assist it in this work pro- Was°wSnC.eS 8t the Federal Reserve Board, vision has been made for the employment of a the governors of the Federal consulting architect, whose function it shall be Reserve Banks, and the executive committee to consult with the several banks as to their of the Federal Advisory Council. The meet- needs regarding the matter of permanent ing was fully attended and the time was given quarters and to arrange with them the details chiefly to a discussion of current problems of their building plans. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

314 FEDERAL RESERVE BULLETIN. APRIL 1,1919. BUSINESS AND FINANCIAL CONDITIONS DURING MARCH, 1919. Improvement in general business conditions servative lines, reflect less apprehension reand the continuance of an undertone of confi- garding the immediate future than a month dence in the essential strength and soundness of ago." It is also stated that "there is every the country's economic position are indicated reason to expect increased activity all through by the reports of Federal Reserve agents as the Middle West." In District No. 8 "busirepresentative of the business situation toward ness is rapidly resuming a normal basis in the close of March. The actual situation itself many lines." District No. 9 reports that has not changed very fundamentally, but there "trade in all the principal wholesale lines is are symptoms pointing to improvement in fu- satisfactory, and retail trade is likewise good. ture prospects and to a more complete read- Collections are good." In District No. 10 justment of business to normal conditions. "reports from all sections * * * point to a According to the report from the First Dis- year of activity and prosperity, while business 'trict, "satisfactory progress is being made is far less inclined than heretofore to wait for * * * in adjusting business to prevailing the development of new conditions." In Disconditions,7' retail trade being generally good, trict No. 11 no changes of importance have savings deposits increasing, and stagnant busi- occurred in the general trade situation during nesses beginning to recover. In the Second the past 30 days, but "further progress is evi- District there is "a general belief that fun- dent in the readjustment period, and less is damental conditions are sound," although heard of the uncertainties following the turn there is still a waiting attitude and uncer- of the new year." In District No. 12 "manutainty as to prices. In the Third District de- facturing and industry have been, on the clines in prices during the past few weeks whole, fair," while prospects are good, exports have "improved the business situation and the largest ever reported, and the principal indicate that progress is being made in the source of anxiety is due to the labor situation. process of readjustment." In the Fourth Dis- From all Federal Reserve districts it is trict "industry may be said to be 'looking up/ reported that the price situation is still the that is, it is glancing upward toward greater controlling factor in business conditions and activity, rather than downward, as formerly, outlook. Several developments of importance to a further period of stagnation, depression, are evident in this connection. There has and decline. The optimism which has been been a continuous though moderate decline constantly in evidence, during the whole of prices. Practically all of the standard period of transition, is being slowly but surely index numbers show a falling off. Bradstreet's substantiated by facts." The Fifth District number for March 1 was $17.2244, a decrease states that "while reports still show cross- of 2-&- per cent from February 1; Dun's currents from dullness and uncertainty, there index number was $217,037 on March 1, as are very few that do not indicate some im- compared with $220,050 on February 1, a provement, present or prospective, and the decline of l^r per cent. Sauerbeck's British spirit generally is confident of overcoming index number indicates a parallel falling off difficulties." In District No. 6 "no great of about 2 per cent. The general index numprogress has been made during the past few ber of the Bureau of Labor Statistics for the weeks toward a return to normal conditions," month ending February 28 has decreased 5 but the general status of business is fairly points, from 202 to 197. The Board's comsatisfactory and it is felt that "as soon as pilation of index numbers showing the situacotton begins to move at a satisfactory price, tion up to March 1, indicates that during Febtrade in all lines will revive." In District No. ruary the prices of consumers' goods decreased 7, business men, "while proceeding along con- 10 points, the number for the month of Feb- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

APRIL 1, 1919. FEDERAL RESERVE BULLETIN. 315 ruary standing at 202. Smaller decreases were in January, while a year ago average prices shown on producers' goods, from 194 to 191, ranged around $85. and for raw materials, from 195 to 192, the Cotton prices have continued to decline decline in the latter being due largely to the somewhat during the early part of the month, decline in the index number for farm products, but the prospects of a resumption of free export from 232 to 222. Reports since received indi- trade have materially strengthened them. cate that the decline in prices has been mod- According to the prevailing opinion in most erately continued in some lines. districts, rapid and general decline of the Almost equally important with the decline prices of local products are not to be expected. in prices is the fact that the public at large Very great diversity of conditions exists in the has apparently given up expectations of manufacturing field. From Philadelphia it is immediate and decisive declines. From some reported that in a number of lines conditions districts it is reported that, in the opinion of are still unsettled at mills. This is distinctly the local business community, " Whatever true of cotton manufacturing and of iron and change in prices is yet to come will come steel. The iron and steel output is still relaslowly/7 and that in consequence the busi- tively small and probably does not exceed ness community has decided that further more than 60 to 66 per cent of capacity in the postponement of activity, in the belief that case of the independent mills, although the drastic declines will occur, is not warranted. United States Steel Corporation reports about During the latter part of March there were 95 per cent of full operation for February, as further downward revisions of prices in impor- compared with 97 per cent for January. Durtant lines. The steel industry sent a repre- ing March conditions have improved somewhat, sentative committee to Washington which, as shown by reports received by the Board in consultation with a board representing the from some of the principal producing districts. Government, agreed upon standard quota- Pig iron production during February amounted tions for the principal steel products, repre- to 2,940,168 tons, as compared with 3,302,260 senting a reduction of about $5 per ton. Some tons during January, and 2,319,399 tons a year further revision in copper and other metal ago, the respective index numbers being 136, prices has likewise occurred. The problem 143, and 107. Steel ingot production likewise of working off the Governments surplus copper shows a decline from 3,082,427 tons in January stocks is still unsettled or only partially set- to 2,688,011 tons in February, as compared, tled. The Wrar Department announced, that however, with 2,273,741 tons a year ago, the under a tentative agreement reached with respective index numbers being 129, 120, and 90 per cent of the copper producers, the latter 102. The unfilled orders of the United States will sell the Government surplus at the market Steel Corporation have continued their decline, price, charging the Government actual cost the figure at the close of February being for so doing. Producers will distribute it in 6,010,787 tons, as compared with 6,684,268 connection with their own product, a mini- tons at the close of January, the respective mum monthly amount being fixed and the 1 index numbers being 114 and 127, while the actual amount disposed of being a certain| figure at the close of February, 1918, was percentage of their total sales, if it exceeds 9,288,453 tons, corresponding to an index the minimum amount. The copper is to be number of 176. distributed in 15 months. Prices for lead are In general manufacturing the situation is expected not to be advanced from their reported as "somewhat mixed/7 Manufaccurrent low figure until existing overstock has turers of boots and shoes report from various been largely disposed of. Lead ores averaged districts that their business is almost normal $51.95 in February, as compared with and in some cases up to capacity. In groceries 111260—19 3 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

316 FEDERAL RESERVE BULLETIN. APRIL I, 1919. retailers are buying slowly, while large stocks the problem of unemployment is still serious, on hand have caused sharp declines in price. but in various parts of the district the surplus In some parts of the country, however, whole- of unemployed is beginning to decline and in salers find business improving. In the Middle some sections it is believed that by May 1 the West activity in many lines is all that could be entire labor surplus will have been absorbed. asked, while elsewhere production is still far In New York City, although the supply is only from normal. Woolen mill production has about equal to demand, considerable labor reached its lowest point and is beginning to trouble still exists, with a number of strikes improve. The American Woolen Co., in con- in progress. sequence of the cut in prices inaugurated some Reports from the producing districts contime ago, has, it is believed, succeeded in book- tinue to be very satisfactory. In the West ing a considerable volume of orders and has and Middle West it is stated that the condition adopted a policy of aggressive bidding for new of winter wheat is excellent and in some quarbusiness. In miscellaneous lines there is a ters the best that has ever been recorded for very variable situation. The demand for the month of March. In the Tenth District it jewelry, automobiles, and other luxuries ap- is reported that crop prospects "are brighter pears to be brisk in many districts. Purchases at this time than at the winter break-up of any of gold at the assay office in New York for the of the last 10 years." From the Chicago dispurpose of manufacturing jewelry were greater trict it is reported that crop conditions are in January and February than during any excellent and that an unprecedentedly small preceding month since October, 1916. In the amount of complaint of crop damage is heard case of materials and in some cases clothing, from planting districts. In the South there which has been affected by the unusual weather has been a reduction of cotton acreage, but conditions, demand is unsatisfactory and manu- prospects for production are good, while the facturing low. Production of anthracite coal other crops of the South and Southwest are has reached a low level, due to the falling off of selling at high prices and have produced at least demand consequent upon extraordinarily mild a fair yield. weather in most parts of the country, and the Grain movements have considerably declined production of bituminous coal and of coke has during the past month. This has been noticelikewise decreased, although recent reports able for each of the five principal grains. show a tendency to an upward movement. Stocks on hand at the close of the month also In connection with the manufacturing situ- show a relatively slight decline in each case. ation there is to be noted a distinct improve- Flour production likewise shows a decrease to ment in the labor and employment outlook. 7,736,000 barrels during February, as compared From District No. 1 it is reported that except with 12,994,000 barrels in the previous month. in certain centers where strikes have been in While the stocks of flour have increased from progress conditions are not alarming, while 3,341,000 at the close of January to 3,544,000 many of those who have been released from at the close of February, conditions as a whole war work are finding it comparatively easy to are dull, and there is a disposition to await shift into other occupations. In Chicago the further developments. employment situation is noticeably improving. In the live-stock market the situation is Returning soldiers are being generally reem- reported as bright. The average price of catployed, although there is difficulty in placing tle has advanced very considerably over a those who desire higher wages and better year ago, while sheep and lambs for February appointment than they had before entering the averaged about the same. The price of meats Army. In the agricultural districts a large de- has advanced; while there has been a slight mand for labor is now opening, due to the pros- decrease in the stocks of meats, there has been pects of excellent crops. On the Pacific coast a 50 per cent increase in the stock of lard. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

APRIL 1,1919. FEDERAL, RESERVE BULLETIN. 317 The trend of prices for live hogs for Chicago considerable size successfully completed. during February and early March has been Prominent among these was the Belgian higher than a year ago. Receipts of cattle industrial credit for $50,000,000, while other and calves at 15 principal markets have de- operations have been undertaken and are in creased considerably from last month, respec- progress. There has again been an increase tive figures being 1,656,046 and 1,096,118 head, in Federal reserve note circulation, the total corresponding to index numbers of 164 and advance for the period between February 28 116. The February figure, however, is almost and March 28 amounting to $49,469,000. as large as that for a year ago. A decrease SPECIAL REPORTS. has likewise occurred in the receipts of hogs, the figures for the two months being 4,603,335 REPORTED BY DISTRICT NO. 1. and 3,451,894, corresponding to index num- Unlike woolen mills, whose raw material bers of 209 and 168. The receipts during was all held by the Government, cotton mills February, 1919, are approximately the same had anticipated their needs for several months ahead on the basis of full production before as receipts for a year ago, while receipts of the armistice was signed. Curtailment of sheep have decreased considerably from the production through reduction in working January figures. They are, however, some- hours per week or through shut-downs has what larger than the February, 1918, figures. made these stocks of cotton last almost twice as long as had been anticipated. As a conse- The figure for February, 1919, is 744,891 head, quence, there is no demand for raw cotton on as compared with 1,079,377 during January, the the part of the New England mills. index number having decreased from 79 to 61, Probably mill production has increased while the figure for February, 1918, is 733,895 slightly over a month ago. In one case it has head, corresponding to an index number of 58. been reported that several mills which were closed for a number of weeks are now running Receipts, meltings, and stocks of sugar at three days each week. Some mills, to keep the close of February show a considerable their organization intact, have solicited orders increase, both over the figures for the previous for future delivery without fixing the actual month, and over the same month in 1918, the sales prices. Should the market take a sudden increase in receipts, and especially in stocks, drop, the purchaser of these goods would be protected and the mill would have to stand a having been considerably greater, however, loss. However, the mill agents have such conthan the increase in meltings. fidence in future values that they are willing to Interest and discount rates have not varied undertake this kind of business. Curtailment materially in any of the markets during the has made possible the making of much needed month of March. The Board's reports show repairs and rearrangement of machinery on a more efficient basis, which could not be done minor variations at different points. In the with the mills running to their full capacity. New York market occasional increases in both The leather market shows considerably more call and time funds have been followed by activity, with prices somewhat firmer. Shipfully offsetting declines. No definite trend is ments are going forward to an increased numto be noticed in any of the principal financial ber of foreign countries* from which import restrictions have been lifted, although in most markets of the month. The Board's figures, cases it is still necessary to obtain import pershowing debits to deposit accounts, both of mits. individuals and banks, register a moderate With continued buying on the part of fordecline during the first half of March, the high eign countries and only limited shipments of point (based on daily averages) having been hides coming from South America through the port of Montevideo, there is no prospect of any reached during the last week in February. reduction in the price of_ leather. Prices for Rates at Federal Reserve Banks have been shoes for fall deliveries are therefore being stable. Banking conditions as a whole have fixed with the expectation that there will be been satisfactory, with some operations of no further advance in the cost of production. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

318 FEDERAL RESERVE BULLETIN. APRIL 1, 1919. Slight reductions in the cost of findings are Rates charged by banks to customers on looked for and will offset any advances in the commercial loans are slightly firmer than a leather market which might possibly occur. month ago. Domestic sales of shoes, both in number of Bank clearings at New York for February pairs and in value, greatly exceed those of last totaled $1,185,528,393, and were 20 per cent year. Dealers are using more care in placing below those of January but were 15.7 per cent orders and buy only those styles which manu- above those of February, 1918. Weekly clearfacturers are likely to carry for their own retail ings for the period under review were as follows: stores. In this way their limited capital can Week ending— be used to better advantage through frequent Feb. 20 $3, 705,468,000 reorders. In general, factories are running Feb. 27 3,437, 309,000 well up to capacity, which, due to less efficiency Mar. 6 3, 979,487,000 on the part of labor, is not nearly as great as Mar. 13 3, 551, 032,000 previously. The weekly clearing-house statement of March 15, on the other hand, shows an expan- REPORTED BY DISTRICT NO. 2. sion of some $113,000,000 in the item of loans, discounts, and investments as compared The commercial paper market continued with the preceding Friday, and of about rather quiet during the period under review, $120,000,000 as compared with February 15. with a comparatively small amount of paper Net demand deposits increased $110,000,000 being offered. After the beginning of March over the preceding Friday and about $181,there was some increase in the supply of paper 000,000 over February 15. Out-of-town banks and a greater activity in the market. While report that the deposits in their savings the rate remained unchanged at 5J per cent, accounts show an increase both in numbers with an occasional sale of prime paper of short and in amounts. The demand for loans at maturity at b\ per cent, there was an undertone these banks up to a period shortly before of increasing firmness. Toward the end of the March 15 was not large, but was expected to period some small purchases of prime paper increase as the final date for tax payments were reported at 5f per cent. The demand drew near. Loans, discounts, and investwas reported as fairly strong, especially toward ments of the Federal Reserve Bank decreased the end of the period, and well distributed over steadily after March 11, and on March 15 they the country, being somewhat weaker at New were in round numbers $814,000,000 as com- York than in the country as a whole. pared with $882,000,000 on February 15. The acceptance market has been fairly active, There has been a decided upward trend in with the supply of bills too small, however, to stock prices throughout the last month, with meet the demand, which has been comparatively the volume of trading large, 1,000,000 share strong. Toward the end of the period there days occurring several times. Bonds in conwas an increased demand for bills, and also trast to stocks have tended toward lower commercial paper, of very short maturities. levels, while the volume of trading has been The rate remained unchanged at 4J per cent small. The Annalist record of the average for 90-day bills, except for an advance of one- prices of 50 representative stocks was 73.15 sixteenth per cent by a single house for one day on February 15, as compared with 76.84 on only. March 15; and of 40 representative bonds, Call money has been relatively easy during 78.07 on February 17, as compared with 76.55 the entire period, tke renewal rate touching on March 15. 6 per cent only twice and running at 5 per cent Most of the exchanges moved in favor of or lower most of the time. Time money of all New York during the four weeks ending March maturities, for use in the Street, has been scarce 15, and during the week following that date and firm at 5|- per cent, with demand light at there was a decided fall in rates on France, that figure. It is reported that the brokers England, and Italy. On March 17, when it now have a comparatively satisfactory pro- was stated hj the press that the French Govportion of their borrowings on the time basis, ernment had suspended purchases of francs and that, despite the increased volume of trade in New York and that further French credits in stocks and the higher level of prices, they would not be available in London, the demand have not materially increased their total bor- rate fell from 5.55 to 5.705. On March 20, it rowings. was announced that the British Government Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

APRIL 1,1919. FEDERAL RESERVE BULLETIN, 319 had suspended purchases of sterling exchange, . From inquiries made of commercial paper and the demand rate on London fell from 4.7565 dealers as to the results shown by statements to 4.69. Concurrently the rate on Paris, covering last year's business we learn that in which had recovered somewhat and wasa large number of cases the statements show quoted at 5.65 on March 19, receded again to reduced inventories, as the result of drastic 5.71. On March 21, following the removal of | liquidations, in order to avoid heavy losses restrictions on dealings in Italian exchange, in a falling market. For this reason, borrowings the rate on Italy fell from 6.375 to 7.05. The have been light and concerns are using their daily movements of these rates from March 15! brokers and their banks much less than is usual to March 21 are shown below: at this time of year. Quite satisfactory profits were realized in the majority of instances, and very few cases of a decrease in net worth are England. France. Italy. recorded. Due to a careful pricing of inventory | and heavy depreciation charges on merchan- Mar. 15 4,7570 5.550 6.365 Mar. 17 4.7570 5.705 6.365! dise, plants, and machinery, the profits shown Mar. 18 4.7570 5.740 6.375 arc not as large as the actual results. Mar. 19 4.7565 5.650 6.375 Mar. 20 4.6900 ft. 710 6.375 There has been no change in money market Mar. 21 4.6900 5.710 7.050 | conditions in the district. Borrowings at the I Federal Reserve Bank have been largo, total REPORTED BY DISTRICT NO. 3. loans and investment operations in February amounting to $643,150,000, compared with Slow but steady improvement is shown in $683,722,000 the previous month. In February knit goods, buying having been stimulated to 322 member banks were accommodated through some extent by the fact that the closing down the discount of paper, compared with 351 in of many mills and the operating of many January. others on part time threatened a scarcity in some lines. Jobbers manifest more confidence REPORTED BY DISTRICT NO. 4. as it becomes apparent that retail business now is approximately normal. Further re- Conditions in the steel market remain unsatductions in prices are expected, but on account isfactory but not discouraging. It is an open of the recent cost of material and labor, they secret that the plans of Secretary Redfield for are not expected to be drastic. discussing a substantial cut in iron and steel There is a good demand for novelties and prices have found a warm welcome at the hands specialties, notably in sweater coats. There of the industries involved. Iron and steel men* has been moderate buying for next fall, but give evidence of unanimity of opinion in believthis has been retarded to some extent by the ing that some reductions must be immedimild winter, making it appear that merchants ately made to stimulate demand, and that feel they will have a possible carry-over of small cuts, constantly occurring, are demoralizheavy weights. A stronger demand for hosiery ing, while one substantial reduction will make and underwear has developed, some manufac- for confidence and stability even though operaturers selling in good volume, and there is tions must be carried on temporarily at a small increasing interest in the domestic market. margin of profit. The Pittsburgh district As to the remainder of the year, the outlook is reports continued inactivity in steel with a more promising than at any time since the number of plants, previously shut down, which signing of the armistice. have not yet resumed operations. It is also The course of prices at the recent auction reported that a considerable portion of the pressales of Government wool indicate that the ent small Pittsburgh production is going into values established are based upon an immediate stock and in replenishing warehouse supplies, and urgent demand from the mills to cover against the day when there will be a genuine orders already booked. Within the past revival in consumptive demand. fortnight a big business has been placed with Increased operations in the tin plate and the mills. sheet mills act as an offset to stagnant condi- A very large manufacturer of woolens tions prevailing in other lines. Prices on reports that business is running ahead of last finished steel are maintained, and it is also year, and that his customers all over the interesting to note that the automobile industry country seem to be busy and look forward to is making a rather vigorous demand for sheet the future with confidence. products, the sheet mills being operated at Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

320 FEDERAL RESERVE BULLETIN. APRIL 1,1919. about 80 per cent of capacity. There is also a and by unsettled conditions prevailing over small increase in demand for boiler tubes. the district. General sluggishness characterizes the wire Although pig-iron furnaces were not fully and wire-nail trades, and where sales are re- in operation, the output of pig iron was greater ported they are made at greatly reduced in February, compared with January, by over prices. Makers of structural material see little 11,000 tons. This increase is largely due to of encouragement in prospect owing to the fact the elimination of inexperienced labor, as many that new orders are not being received, in- of those working in this line before the war quiries likewise being scarce. have returned. An increased tonnage per man Pending financial relief to the railroads, has resulted, which materially reduces the cost which assistance the last Congress failed to of production. The present demand for pig provide, it is thought that no substantial iron is light. improvement can be looked for in that branch The steel plants are busy and have enough of the steel industry which ordinarily supplies orders booked to keep them at full speed for the needs of the Nation's carriers. many months. The shipbuilding plants in the The tin-plate mills look forward to the im- South will need large quantities of steel, and mediate future with considerable optimism. the steel fabricating plants, when completed, This is said to be due to large oil developments will use a large steel tonnage. The unfilled and bumper crops which are expected. steel tonnage of the United States Steel Cor- The outstanding feature of the month is poration is reported at 6,010,787 tons, as 'undoubtedly the sentiment, which has been against 6,684,268 on January 31, a reduction of steadily crystallizing for the past 30 days, that 673,481 tons. Trade conditions, both in iron cuts to as near bedrock as possible are necessary and steel, are not up to the standard, as far as before better things can really be expected. demand is concerned, but hope is entertained While the cut, which it is thought will be an- that both commodities will soon be stabilized nounced shortly, will undoubtedly not be final, and a greater demand result. Labor condiit is confidently believed that the prices named tions have improved to some extent in this will obtain for a sufficient period to create a industry, both as to quantity and efficiency. lively as well as a healthy demand. The senti- It is felt all over the district that as soon as ment being unanimous that a cut is indispensa- cotton begins to move at a satisfactory price ble, manufacturers are hopeful that Secretary trade in all lines will revive, collections improve, Redfield's plan will afford the most effective and bank deposits show material increases. means of successful accomplishment. While the expected downward trend of prices has not materialized, it is encouraging to note REPORTED BY DISTRICT NO. 5. reductions in prices of a few standard articles Cotton mills report the market unsettled for of food during the month. their goods, and a drastic reduction in prices has greatly disturbed confidence. Jobbers and REPORTED BY DISTRICT NO. 7. retailers have been very cautious in placing Crop conditions throughout the Seventh new orders. Further reduction in operating Federal Reserve District, and in fact all time is reported, with suggestions of possible through the Middle West, are excellent. The closing. Mills, however, are hoping for a reonly growing crop, of course, is winter wheat, vival of confidence and believe this would and this has come through the winter with come if labor, instead of making unreasonable little, if any, damage, and while the plant demands, would display the same spirit of coseems backward, the prospects are for a rapid operation which is expected from industries in growth with the advent of warm weather. meeting changed conditions and bringing about Absence of any considerable amount of snow the readjustments necessary to restore normal during the winter caused some apprehension of business conditions. If this were accom- "winter killing" of wheat, but the remarkably plished, the channels of trade would be opened even temperature in the Middle West during up, and it is confidently believed that it would the winter months apparently eliminated the soon be found that more goods are needed than disastrous effects upon the growing plants of can be made and that there will be a very alternate freezing and thawing. It is remarkactive demand for them for some time to come. able how little complaint of damage is heard in the correspondence with business men in the va- REPORTED BY DISTRICT NO. 6. rious channels of trade throughout the district. Cotton mills and pipe plants are not active. With the arrival of spring, soil conditions are Their operations are injured by lack of orders regarded as splendid. So great has been the Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

APRIL 1, 1910. FEDERAL RESERVE BULLETIN. 321 precipitation in the last few weeks that the concern stating that the demand is fully up roads have been practically impassable in most to its ability to supply. A large dry-goods parts of the district. While this has kept the company states that its factories are working agricultural element at home and has been a full time and that its sales for the past four factor in the curtailment of sales at the retail months are even with last year. Both cotton stores, which has been reflected to some extent and woolen goods are said to have declined in wholesale lines, yet the abundance of mois- about 25 per cent. A large wholesale grocery ture in the ground generally is a prerequisite of concern states that its business is now about a bountiful crop production. Plowing may be normal and that there is a good demand for its delayed somewhat owing to the wet soil, but products. Reports indicate that certain the month of March usually is given over to branches of the iron and steel industry are still spring work and repairs about the farm. | below normal, but that increased activity is Farmers are well supplied with funds, and the ' anticipated. The demand for automobiles, large demand for wire fencing and farm equip- trucks, garages, etc., is said to be helping this ment indicates that at least a normal amount line materially. Manufacturers of farm impleof this class of work is under way, notwith- ments report a good demand for all kinds of standing the effect of the uncertainty as to the farm machinery. Considerable improvement future prices of iron and steel on other lines of is noted in the electrical line, one large concern industry. stating that it expects a record business for the Development in the live-stock industry and next three months. The drug line is active and the course of the market price of corn has done there is a good demand for fixtures, soda founmuch to reassure the farmer and stimulate tains, etc. maximum production. This concern regarding future prices of farm products was reflected REPORTED BY DISTRICT NO. 9. in the large receipt of hogs at the primary There are indications of a 10 per cent increase markets last month compared with a year ago. in wheat acreage in the eastern half of North The average price of cattle for the month of Dakota and in Minnesota, while in South February advanced very considerably com- Dakota and Wisconsin last year's wheat acrepared with a year ago, while the sheep and age will undoubtedly hold its own. In the lambs taken together averaged about the same. eastern portions of the two Dakotas, and There was an advance in the price of meats, throughout Minnesota and Wisconsin, there notwithstanding that the receipts of two will be a substantial increase in the barley acreclasses of live stock showed a considerable age. The prospective acreage of other crops increase in the first two months of 1919 comwill be approximately the same, excepting that pared with January and February, 1918. with an ample supply of good seed, there are While there has been a slight decrease restrong indications of a heavier planting of corn. ported in the stocks of meats, there has been a | In the western half of the district some winter 50 per cent increase in the stock of lard as comwheat has been killed out, but the loss is not pared with a year ago, but the demand has unusual or serious enough to prove to be a been good, both for export and domestic trade. factor. In the same territory the indications The trend of prices for live hogs at Chicago for spring wheat planting are very good. Over during the last month has been higher than a practically the whole district present moisture year ago. Attention is called to an unusual conditions are excellent. development in the case of cut meats. The stock declined at some of the central points REPORTED BY DISTRICT NO. 10. during February, 1,713,312 pounds, as compared with an increase of 88,000,000 pounds Removal this month of restrictions on exduring the corresponding period in 1918. The ports of hog products to allied countries, trade in by-products, such as fertilizer, greases, taken in connection with the abandonment of and oleo oil, has been slow, but there has been the agreement between the Government and a tendency in the price of wool and also sheep- the packers to maintain minimum prices, has skins to advance, while the hide and leather resulted in an advance of about 75 cents per market is rather unsettled, waiting, and hesi- hundred pounds on live hogs within the past tating. Prices for leather goods are steady. week. But at the same time the hog market, stabilized for several months by the Food Ad- REFORTED BY DISTRICT NO. 8. ministration's guarantee of prices and market- Manufacturers of boots and shoes report that ing regulations, is in an unsettled condition. their business is practically normal, one large In consequence of the enlarged field of trade Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

322 FEDERAL RESERVE BULLETIN". APRIL 1,1919. and a limited hog supply it is freely predicted The excellent crop prospects fully justify the that prices of hogs and pork may for some prediction of a satisfactory business during the time remain higher than the stabilized prices spring and early summer months, and we see that were maintained. Prices of both cattle no reason why the situation should not conand sheep have, to an extent, been influenced tinue intrinsically sound. There is no imby the new conditions that have come to theprovement in the cotton situation. Large lots hog market. are held at interior points, and at the risk Packing hogs for the week ending March 15 of repetition it may be stated that until it is were selling at $18.85 to $19.10 per hundred marketed the restoration of normal times can pounds, as compared with $16.90 to $17.60 in not be expected. The wheat and oat crop February, which is a shade higher than at this looks very fine in practically every part of time last year while the war was on. Cattle the district. During the past two weeks heavy prices have been maintained at $2 to $4.50 winds have prevailed in southwest and west per hundred pounds above the prices of a year Texas and reduced the moisture in the ground. ago, top prices on steers reaching $18.50 in There is much activity in farm work prepara- February, as compared with $13.75 in Feb-tions, however, and the district will unquesruary of last year, other classes and grades of tionably produce one of the largest grain crops cattle being relatively high. Top prices of in its history. The campaign for a reduced lambs, w^hicli in January dropped to $16.95 per cotton acreage is having a good effect, and we hundred pounds or 30 cents' below the top of believe, with few exceptions, is being enthusilambs in January, 1918, rose to $18.60 in Feb- astically received. The reduced acreage will ruary, and on March 4 sales were made at a automatically increase the area planted in new record price of $19.50 per hundred pounds, diversified crops, such as corn and other foodthe latter being 50 cents higher than the peak stuffs. war price of March, 1918. REPORTED BY DISTRICT NO. 12. THe movement of meat animals to the mar- The strike of 40,000 shipyard workers in kets is running ahead of this time last year, as Seattle and Tacoma, which commenced on the following figures of receipts at the six mar- January 21, was ended March 11 by a referenkets of the district show: dum vote of the workers. The men are returning to work, but it will require approxi- February. Two months. mately two weeks before the yards will be in a position to reemploy the same number as at the 1919 1918 1919 1918 time the strike was called. It is expected that when this readjustment is accomplished the Cattle. 393,438 403,445 954,579 890,849 steel shipyards will be employing practically Calves 23,038 13,900 59,114 35,841 Hogs.. 1,0v2—9,5 4„2,„ ' 964,575 2,446,144 1,938,716 the same number of men as on November 11, Sheep. 384,609 403,800 855,123 935,351 but there will be a reduction of from 15 to 50 per cent in the number employed in the ship- Indications of a decided slump in live-stock yards building w^ooden ships. Approximately marketing, as compared with the heavy war- 10,000 craftsmen, mostly machinists, in the time rush of food animals to the markets, are San Francisco Bay district are now unemdisclosed in the receipts, which are running ployed on account of their refusal to work on lighter in March than in March of last year. Saturday afternoons. Reports from the ship- Packers' operations in February were mateyards in Portland show that there are now rially reduced from the heavy operations main- 24,314 men employed as compared with 28,600 tained for the previous five or six months. on November 11. In California reports from Purchases of animals for slaughter at the six seven shipyards show 40,094 employed at markets in February were 218,000 cattle, present, as compared with 41,395 when|the 900,000 hogs, and 243,000 sheep, as compared armistice was signed. with the record for February, 1918, of 241,000 The problem of unemployment is still serious cattle, 849,000 hogs, and 240,000 sheep. throughout the district. In California there are approximately 19,600 out of work, aside REPORTED BY DISTRICT NO. 11. from the 10,000 shipyard strikers. In Oregon The crop outlook is more encouraging, fur- there is an estimated surplus of 8,985 made up ther progress is evident in the readjustment of 2,185 skilled and the remainder unskilled period, and less is heard of the uncertainties laborers. The number is, however, decreasing noticeable following the turn of the new year. rapidly on account of new public improve- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Al'KIL 1, FEDERAL RESERVE BULLETIN. 323 ments and increased work on farms and in The provincial banks absorbed by the lumber camps. In Washington the total London institutions did not (with the excepnumber of unemployed is between 10,000 and tion of the Metropolitan Bank of England and 12,000, about one-third being in Seattle. Wales) show cash in hand and at bankers The number has been decreasing rapidly during separately from mone.y at call and short notice; the past 10 days. It has been stated that by in the above table, therefore, under the year May 1 the entire surplus will be absorbed in 1913 the amount of cash is overstated and of Oregon and Washington. In Utah there are loans and advances understated by the sum approximately 5,000 unemployed, mostly un- lent, at call and short notice by those banks. skilled laborers, and in Nevada there are now If the proportion of money at call and short 3,500 miners out of work. Reports from Ari- notice to cash in hand and at bankers was the zona place the total in that State at 7,250, same for these banks as it was for the banks made up of 3,750 miners, 2,500 unskilled la- which distinguished between the two items, the borers, 1,000 miscellaneous. Figures from sum involved is about £3,500,000. On this Idaho show 1,310 without employment, classi- assumption the table would read as follows: fied as follows: Agricultural workers, 350; unskilled laborers, 485; miners, 350; miscellaneous, 125. C a u d c r c e re o p n o u t s n a i t t s n . d a h t C a b n a a d s n h k a i e n n r d s. I m nv en es ts t- . l a D o d a i v s n c a s o n , u c a n e n t s s . d 1 , Bank Credits in War. Five London b:m!«: (From the London Economist, TVb. 8, 1919.) 11)18 £1,305,095.000 £237.499,000 £258,933,000 £850,038,000 ]i)13 057,030) 000 100', 300,000 91,254,000 507, S75,000 Now that the report of Lloyds Bank has Lierea-'O-. C47.105,000 131.199,000 104,254,000 348. 1<".3, 000 appeared, it is possible to group together the Increase, p c r figures of the Big Five banks, and see what has cent 9; 125 173 happened to them during the-war period. We 1 Including money at call and short notice. can thus, by taking the experience of these If the experience of these five groat banks is most important members of our banking marepeated by the other banks of the United chine, anticipate with some confidence what Kingdom wo may expect to find that the is likely to be shown when in our banking to till amount that the public had to its credit number, that will appear in May, the complete with its bankers, apart from the Bank of figures for the United Kingdom can be as- England, will have grown from 1,033 millions sembled and a full comparison can be made at the end of 1913 (as shown by our banking between the years 1918 and 1913. As usual, number of May, 1914) to something like 2,000 the comparison is complicated by the lack of millions last December. It is amusing now uniformity in banking accounts, which affects to remember that in the early years of the the figures of some of the concerns that have war the rapid growth of bank deposits was been absorbed by the Big Five. One of the hailed as an astonishing proof of the growth advantages of the amalgamation process has of the nation's wealth during a time when an been its effect in the direction of greater fullever-increasing portion of its energy was being ness and candor in statements, as the London devoted to destruction. This hallucination is standard has boon applied to provincial banks now not nearly so common, though it is still that lagged behind it and have boon absorbed. cherished by some earnest believers. Actually We subjoin a statement of the chief liabilities the growth of bank deposits is largely a measand assets of the group as at December 31, ure of the extent to which the facilities offered 1918 and 1913. by an almost perfect banking system have been abused by our financial rulers during Cm-rent iind i Cash in j Discounts, deposit ; hand and ] loons, arid the war. Because they had not the pluck to account.*. ! at bankers, i advances.1 | tax as they ought to have.taxed, or the wit to ~r Five London i I induce or compel us to meet the war cost by bank;: {• 1.305,095.000!£ 237,499.00!) £ 25S, 933,000 £ S5I>, 038,000| subscription of saved money to loans, they 1913 3 '057,930,000= l(W,.S()0',000| 91, W.)7,000 504,370,000 wore obliged to meet the gap between receipts Increase.. C>17,105,000 127, (199,000 j 101,251,000 351,003,000 and expenditure by the creation of banking Increase, per cent 97 117; 173 70 credits and paper money. Instead of taking or getting money from us, and so reducing our ^Includes money at call and short notice. buying power as fast as theirs had to grow, 2 Includes all banks subsequently absorbed in the 5 London banks except Nevile, Reid & Co. (acquired by Barclays in 1914), for which no they made new buying power, so reducing its figures arc available. 111260—19 4 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

324 FEDERAL RESERVE BULLETIN. APRIL 1, 1819. effectiveness, and that of ours, through the of our best foreign securities, and by the lack consequent rise in prices, which incidentally of upkeep which is shown, for example, by added enormously to the cost of the war, and the puddles in every street, the effect of this to the suspicion and discontent among the great multiplication of claims to wealth is workers, of which we are now beginning to naturally the depreciation of their value as reap the fruits. If every purchase by the reflected in higher prices of goods. It has Government had been balanced by a restric- been a silly business, for which the bankers tion of the spending power of the individual were in no way responsible. They were citizens, the whole finance of the war would bound in war time to support the financial have had a different aspect. The debt would measures taken by the Government, and the have been much smaller, the adverse trade figures given are at once a measure of the balance would have been less formidable, the efficiency of the bankers and of the ineptitude opportunities for profiteering by employers of the Governments. In excuse of the latter, and workers would have been greatly reduced, it must be remembered that they probably and there would have been less of the conse- did not understand the working of the maquent demoralization which is now terminating chine that they were using, or abusing, and a war for liberty and justice, with a sordid also that they were always deluded by the scramble for spoils. conviction that the war could not last another If we look at the growth in the assets which six months. This conviction lasted until has accompanied the growth in deposits, the just about the time when it became true, process by which the latter has been produced when it was abandoned in official circles. is clearly evident. Discounts, loans, and advances have risen by about 350 millions, in a period during which the volume of commercial bills has been greatly reduced, and Federal Reserve Banks and the Fourth Liberty general business has been, to a much greater Loan. extent than before, on a cash basis. This paradox is explained by the inclusion of In the following tabulation are shown prin- Treasury bills in the discount item in the cipal changes in the condition of Federal Rebalance sheets of certain banks, and b}^ the advances made by the banks to customers, in serve Banks between October 18, 1918, and order that they might take up war loans and January 31, 1919, covering practically the war bonds. To the extent that the Govern- period of the placing of the fourth Liberty ment has sold securities during the war to loan, i. e., from the time the first 10 per cent bankers or llinvestors" who borrowed from pa^onent on the loan was due to the time when their bankers in order to subscribe, the war was financed by additions to banking credits, the last 30 per cent installment became since every loan and every investment made payable. by a bank creates a new deposit for itself or During the period under discussion the Govfor another bank. The big increase in the ernment issued $6,989,047,000 of fourth loan investments held by the banks, amounting to bonds, $794,172,500 of tax certificates, and 164J millions, may be largely attributed to the use of this form of inflation. Finally, the $3,225,099,500 of Treasury certificates in anticit item of cash in hand and at the Bank of pation of the fifth loan, or a total of $11,008,- England, which shows so satisfactory an 319,000, and redeemed all the seven series of increase, has been swollen by the activity of certificates aggregating $4,659,820,000 issued the printing press, which has enriched the in anticipation of the fourth Liberty loan. country with over 300 million Bradbury notes, and of the Bank of England's credit- The net result of these operations was to making energy, which has added 165 millions supply the Government with additional funds to its holding of securities, as shown in its of $6,348,499,000. weekly returns. It will be seen that notwithstanding the By these processes there has been achieved huge loan operations handled b}' the Federal the "enormous increase above recorded in the Reserve Banks and the enormous amounts of claims to wealth which bank deposits ultimately mean. As the wealth of the country funds and credits placed at the disposal of the has in the meantime been reduced by the sale Government, the reserve position of the banks Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

APE 11,1, 1919. FEDEEAL RESERVE BULLETIN. 325 at the end of the period was stronger than at of war paper, i. e., bills secured by United the beginning of the period. This was due in States war obligations, as against decreases of the first place to a gain of nearly 92 millions 182.3 millions in their other discounts and of in reserves, largely gold, and a decrease in 88.8 millions in the holdings of bills purchased Federal Reserve note circulation of 51.8 in the open market. millions, more than offset, however, by an The excess of actual reserves over the amount increase of net deposits of 78.7 millions. required against deposit and note liabilities During the period of intense Government (so-called free gold) increased 85.2 millions, financing the Federal Reserve Banks report adding about 213 millions to the note-issuing an increase of 94.8 millions in their holdings power of the banks. Changes in condition of Federal Reserve Banks. [In millions of dollars.] O 1 c 0 t. 1 . 8 1 . 8, OW ' *ncreasc-! Decrease. Total cash reserves 2,087.7 2,179.6 I 91.9 Bills secured by Government obligations. 1. 202.8 1,357.fi ! 94.8 Bills otherwise secured 425.8 243.5 i. 182.3 Bills bought in open market 370.1 281.3 j. 88.8 Total bills 2,058.7 1,882.4 176.3 Government securities Do. 9 294.8 198. 9 Net deposits 1.580.8 1,059.5 78.7 Federal Reserve notes in circulation 2; 502.5 2.450.7 51.8 Federal Reserve bank notes in circulation 55.7 ' 129.4 73.7 Net deposit and Federal Reserve note liability 4,083.3 4,110.2 26.9 I Reserve required 1,554.3 1,501.0 i 6.7 Total cash reserves ; 2,087.7 2,179. (i i 91.9 Free gold 533.4 018.0 ' 85.2 Note-lending power 1,333.5 1,54(5.5' 213.0 Per cent cash reserves to total liability 51.1 53.0 : 1.9 Federal Reserve agents' note security: Gold / 1,173.5 1.253.3 i 79.8 Paper 2,012.9 i;823.5 !. 189.4 Excess of paper 519.4 373.4 . 146.0 Banks' redemption fund 57.4 91.3 i 33.9 Total gold reserves against Federal Reserve notes 1,230.9 1,344.6 j 113.7 Vault reserve, including gold with foreign agencies 440.4 412.2 I. 28.2 Gold settlement fund 410.4 422.7 ; 6.3 Liquidating the War Paper of Member Banks. per cent of the loans in the Federal Reserve Bank and of loans discounted by that bank In preparing their annual reports, Federal with other Federal Reserve Banks were against Reserve agents were asked by the Federal Government securities. As early as possible Reserve Board to include a statement of their means should be taken to encourage liquidation of such loans. The most effective means views regarding the policy to be pursued in would appear to be the gradual increasing of restoring the liquidity of banks throughout the the Federal Reserve Bank's discount rate on country. Practically all Federal Reserve bond-secured loans. How fast and how far agents have complied with this request. The this rate should be increased will depend on following compilation is a review of their its effect on the future offering of Government answers on this important topic: securities and the rate at which such securities are offered. No other method than by rate BOSTON. increase seems practicable, although banks should be urged to bring some pressure on their As the industries of this district when hos- borrowers of this class, either by increasing tilities ceased were largely given to Govern- rates or by demanding an additional margin of ment work, the cancellation of war orders will collateral. How soon this war paper can be probably bring about a considerable reduction liquidated, it is difficult to say. If liquidation m commercialloans. Banks of the district are comes in commercial loans, banks may liquicarrying a very large volume of loans against date their Federal Reserve Bank borrowings, Liberty bonds, and "on December 31 about 75 but as soon as the Government's requirements Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

326 FEDERAL RESERVE BULLETIN. AiTtiL 1, 1919. have been met, liquidation should be steadily liquidation. If there is one policy which .and consistently forced by the Federal Reserve appears to be unquestionably desirable in the Bank increasing its rates. difficult period of readjustment that immediately confronts us, it would seem to be that PHILADELPHIA. of encouraging by all possible means the continuation of saving and the thorough absorp- It is difficult to estimate the probable time tion of the Government securities, which can in which members can clear up all their "war not now be said to be fully digested; and it is paper77 at the reserve bank. Not very much equally certain that all of the influences that progress can be made until the Government can be brought to bear to that end will be has completed its war financing. If prior to none too potent. the next bond issue considerable liquidation in business should take place, it would release RICHMOND. funds for investment in United States certificates of indebtedness and possibly prevent Those banks which purchased bonds themmaterial increase in the loans of the bank. selves and induced their customers to do so by In pursuance of the policy of banking insti- agreeing to carry them, have, as a rule, gone as tutions, loans not essential to the prosecution far in this direction as is judicious. At present of the war were very largely curtailed, while prices, liquidation of war paper would entail loans for war purposes were greatly expanded, considerable losses, and public sentiment does and it is the latter class of loans in which there not approve of forced liquidation under such is the possibility of considerable contraction circumstances. This is particularly true in owing to the cessation of the war. view of the coming campaign for the fifth loan. The terms of this loan will have an important In the meantime it should be the policy of bearing on present bank war obligations. This the Federal Reserve Bank to use every effort will necessarily delay liquidation of the present to bring about as rapidly as possible the situation. Under these conditions, the Federal liquidation of war paper and at the same time Reserve Bank must shape its policy toward do everything it can to encourage legitimate member banks as daily conditions may arise. business by extending as far as possible neces- These being unknown, it is problematical as to sary credit facilities. how soon war paper can be cleared up. The volume of this paper, together with cotton CLEVELAND. paper, is so large that it will probably need the Iii practically every community of District No. proceeds of another crop to relieve the indiges- 4, with one or two exceptions, the Government tion. securities appear to have been subscribed al- ATLANTA. most completely by individuals and corporations, and few subscriptions,comparatively,were It would be very difficult to say at what time made by the banks for their own account. The we may expect member banks to clear up their proportion of loans to subscribers for carrying war paper. This is due largely to the fact that bonds of the fourth Liberty loan, however, is the main products in this section, such as cotlarge and it is evident that some of the sub- ton, cotton seed, peanuts, rosin, and turpenscribers intended to carry loans on their bonds tine, of this year's crop, have not yet been sold. for at least a year. Reports indicate, however, The decrease in the price of cotton in the fall that few agreements have been made by banks created a disposition in the minds of the proin the district to carry loans on fourth Liberty ducers to hold their products for a better price; loan bonds at the coupon rate for longer than and, with increased prices, liquidation will set 90 days, and this bank has encouraged the in from that source. This, in turn, will restore banks of the district in the policy of an increas- the liquidity of the banks and will enable them ing rate to stimulate liquidation at as early a to settle their loans secured by Liberty bonds date as possible. It is our own policy to and United States Treasury certificates. accept ordinarily one renewal of a member The policy of the Federal Reserve Bank of bank's own 15-day collateral note secured by this district will be to aid these member banks Government securities, at the special rate of by carrying their discounts for them until such 4 per cent, but to make any subsequent time as this liquidation will materially set in, renewals bear the 90-day rate of 4J per cent; which it is expected will be during the months and it is the judgment of our directors that of January, February, and the early part of with all due liberality of policy, every proper March. We are extending to member banks influence should be exerted" toward early the facilities of this bank in every way. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

AIMHI, 1, 1010. FEDERAL RESERVE BULLETIN. 327 CHICAGO. amount is $91,000,000, this, added to the1 $710,804,500 of Liberty bonds, gives a total of Necessarily the commercial banks of the approximately $800,000,000 of war obligations district not only felt the effects of the demands taken by this district and outstanding at the/ of the Government upon their resources in the end of 1918. matter of purchasing Government securities, The banks in the live centers of this district r hut also they have felt the effect of the high St. Louis, Louisville, Memphis, Little liock, prices of practically all raw materials. Nat- and Evansvillo, at the close of 1918 held apurally these high,prices made it necessary for proximately $40,000,000 of Liberty bond'sborrowers to use much more money for the and approximately $35,000,000 of certificates same volume of business than was needed be- of indebtedness, or an aggregate of $75,000,000 fore the war. These two elements have caused of war obligations. This would indicate that the banks generally throughout the district out of the $800,000,000 of war obligations to borrow liberally from the Federal Reserve taken and outstanding in this district, a very Bank of Chicago. large amount, probably five to seven hundred The effect of war financing on commercial millions of dollars, was absorbed by the general paper from the standpoint of the banks nat- public. Under the circumstances, this indiurally would be that of subjecting makers to a cates a not unsatisfactory condition in this more careful scrutiny of the credit risk. Cred- district. its extended before the armistice was signed At the end of this year the member banks were based primarily upon their essential char- had. discounted with the Federal Reserve Bank acter to a very considerable extent, whereas a total of $53,117,641.50 of war obligations, after the armistice was signed and war needs showing the extent to which the Federal Rerelaxed, credits were viewed from the stand- serve Bank has been called on to give assistpoint of ability to get back to a safe and profit- ance. Due to this assistance the support able peace basis. The consequence of this rendered by the banks to the Government has shift in viewpoint necessarily has contributed had little effect on the general business in this to a most careful examination of credits, Avhich district. At the request of the Federal Rein the war period were regarded as the serve Board many banks discriminated against strongest. Notwithstanding the heavy war loans for nonossontial purposes, but legitimate demands, the banks in the Seventh Federal essential business demands have been taken Reserve District are believed to be in a rela- care of by the banks without hesitation at a tively strong position and hence able to care fair rate of interest. for all reasonable demands of general business. The following figures show the assistance In the performance' of the functions for given member banks during the period of the which it is created, the Federal Reserve Bank war: On April 1,1917, just prior to the entrance of Chicago will continue to meet the situations of the United States into the war, the bills reas they arise, extending to deserving member discounted by the Federal Reserve Bank of banks its facilities of discounting with a view vSt. Louis for member banks amounted to only to aiding them in caring for credit require- $251,806.43, and the advances made to memments of general business, and at the same time ber banks on their 15-day collateral notes conserving credits to the extent necessary for amounted to only $1,310,000.. On December the furtherance of Government financing yet- 31, 1918, after a year and eight months of war to be done. financing, the bills discounted for member ST. LOUIS. banks amounted to $21,249,353.85, of which $3,904,341.50 was secured by Liberty bonds In Federal Reserve District No. 8 a total of and Treasury certificates of indebtedness, and: $710,804,500 was sold of all four issues of the advances to member banks on their 15-day Liberty bonds. The total amount of certifi- collateral notes amounted to §49,453,300, of cates of indebtedness taken by this district in which $49,213,300 was secured by such Govanticipation of all Liberty loans was $444,543,- ernment securities. Thus from our entrance 500, but of these certificates $353,454,000 have into the war to the close of 1918, member matured and been paid by the Government, banks' paper discounted by the Federal Releaving $91,089,500 outstanding. Of this $91,- serve Bank of St. Louis increased from 089,500 of certificates, some were used in mak- $1,561,806.43 to $70,702,653.85, of which ing payments on fourth Liberty bonds, so that $53,117,641.50 was secured by war obligations. the amount actually outstanding is less than The effect of war financing on commercial $91,000,000. Assuming, however, that the paper in this district has been very noticeable,. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

328 FEDERAL RESERVE BULLETIN. APRIL 1, 1919. The market has been considerably below nor- DALLAS. mal. Slight revivals have occurred between the Liberty loan campaigns, but on the whole Any statement as to the period of carrying the commercial paper business has been quiet. "war paper" or paper secured by Govern- The rate on commercial paper during 1918 ment war obligations would be hazardous. remained at practically 6 per cent until Decem- We do not think many banks will desire to ber, when a downward tendency became carry this paper for long periods, as most of the apparent. banks make such loans at low rates of interest, and mainly through patriotic motives. Of MINNEAPOLIS. course, the time required for the resumption of The policy of the Federal Reserve Bank normal conditions will be an important factor, from the beginning of the war has been to vig- for, if money matters are not unduly strained orously discourage bank investments in Liberty and conditions return to normal within a reabonds, believing that it was highly necessary sonable time, the banks will soon be able to get that all banking institutions give especial care rid of most of their "war paper." The period to the preservation of their ability to promptly of one year could probably be conservatively take care of their customers and assist in the fixed as the time for liquidating paper of the problems of war financing in their home com- character referred to. We believe the general munities. The banks of the district have public appreciate the importance of holding therefore avoided large holdings of their own. their Liberty bonds and paying therefor out of The amount of Liberty bonds taken on their earnings. In extreme cases the assistthrough failure to complete deferred payments ance of banks will be sought. was insignificant as compared with the total. This bank's p\olicy toward banks which have At the end of the year the commercial banks assisted in the extensive financial program of of the district were not holders of Liberty the Government will continue to be one of servbonds to a large extent or to a degree appreciice, and the facilities of this institution will be ably threatening their liquidity. freely extended in every way consistent with During the period in which Liberty bonds sound banking principles. At the same time can not be readily liquidated at par the policy it ha-? been the practice of our officials to disof the Federal Reserve Bank will be to accept courage undue expansion and restrict advances Government obligations as collateral for loans to legitimate neech until the return of normal upon a minimum rate basis, enabling member conditions. We desire to assist the banks in banks to convert such holdings into cash or the period of financial readjustment upon credit, as occasion may demand. which they are now entering, and confidently expect the transition to be made without un- KANSAS CITY. due disturbance. The winter wheat crop to be marketed in the spring and the cattle which will come on the SAN FRANCISCO. market at that time will have a tendency to ease the situation to some extent, but this will As the products of this district are primarily be largely offset by the fifth Liberty loan to be agricultural, the sale for which has been cersold at that time. With fair crops, consider- tain, and as there has been some tendency to able liquidation should be possible in the fall shorten the time of commercial credit and enof 1919. force prompt payment, part of the loans of the The policy of the Federal Reserve Bank banks in this district will liquidate rapidly. must obviously be liberal when special condi- Borrowing upon Government obligations has tions require it, but interest rates should be extended to considerable proportions, but these held firm and incline upward in order to prevent loans are being gradually liquidated. In prothe already apparent tendenc}^ for banks to Iportion to their total resources, investments by extend themselves imprudently for new business \banks in Liberty bonds are comparatively and profits. | small, those of all national banks, through With the Government guaranty of price for j which practically half of the subscriptions were wheat and the abnormally large acreage which Ireceived, amounting to $56,854,000 on Novemhas been seeded, and with the present ideal Iber 1, 1918, as compared with $1,360,534,000 weather conditions, the feeling is justified that itotal resources, S691,176,000 total loans and next year should help materially in restoring j discounts, and $321,723,000 securities held. the liquidity of banks in this district. j Liberty bonds held by national banks represent Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

APIIIL 1, 1010. FEDERAL RESERVE BULLETIN. 329 only 4.9 per cent of $1,154,345,850 of Liberty loan was issued by the Treasury Department bonds sold in this district. on March 7: The rate at which banks are liquidating their borrowings is shown by the reduction in redis- By virtue of the authority conferred upon the Secretary counts of commercial paper held by the Fed- of the Treasury by section o of the Victory Liberty Loan eral Reserve Bank from $49,289,000 on Sep- act, approved March 3, 1919, the privilege of converting, tember 13 to $39,337,000 on November 8, to 4 per cent bonds of 1932-1947 of the first Liberty loan $30,038,000 on November 30, and $33,732,000 converted and 4 per cent bonds of 1927-1942 of the second on December 31. This compares with $23,- Liberty loan into 4{ per cent bonds., which, privilege arose 464,000 held on January 1, 1918. Similarly, on May 9,1918, and expired on November 9,1918, is hereby borrowings on Government obligations are be- extended, subject to the provisions of this circular, for the ing reduced, member banks7 collateral notes, period beginning March 7, 1919, and ending at such date practically all secured by Government obliga- as may be fixed by the Secretary of the Treasury on six tions held by the Federal Reserve Bank, de- months' public notice given in such manner as he shall creasing from $61,561,000 on October 10 to prescribe. Said conversion privilege is described in $44,136,000 on November 30 and $45,027,000 Department Circular No. 114, dated May 9, 1918, and the on December 31. provisions of Titles I, IX, X, and XI of said circular, If the next Liberty loan is not offered before except as herein otherwise provided, shall apply to and April or May, it seems probable that the prin- govern said conversion privilege as hereby extended. cipal part of the Federal Reserve Banks7 pres- This circular does not apply to any conversion privient loans based on Liberty bonds will be liqui- lege which arose in favor of the 3} per cent bonds of 1932dated by that time. But meanwhile new loans 1947 of the first Liberty loan. will presumably appear based on the succeeding Conversions in the exercise of the conversion privilege issues of certificates of indebtedness. It seems as hereby extended may be effected by presentation and probable, therefore, that borrowings from the surrender of 4 per cent bonds of the First Liberty loan federal Reserve Bank on paper secured by converted, and 4 per cent bonds of the Second Liberty Government obligations will continue in sub- loan, to the respective Federal Reserve Banks in Boston, stantial amount until after the next Liberty j New York, Philadelphia, Cleveland, Richmond, Atlanta, loan and that there will be steady liquidation Chicago, St. Louis, Minneapolis, Kansas City, Dallas, and of such paper thereafter. There seems reason San Francisco, or to the Secretary of the Treasury, Divito expect that they will be practically elimi- sion of Loans and Currency, Washington. Such bonds nated" during the coming year. so presented and surrendered for conversion must be It is and has steadily been the policy of the accompanied by "Request for conversion" in the form Federal Reserve Bank to assist its member prescribed by the Secretary of the Treasury (Form L. & C. banks in meeting the special demands made 25 A hereto attached, copies of which may be obtained upon them. This has been particularly true in from any Federal Reserve Bank or from the Secretary of connection with unusual requirements for han- the Treasury), signed with the respective autograph signadling crops. Rarely has it been necessary to tures of the holders of the bonds presented for conversion. criticise the attitude of a rediscounting bank. Registered bonds will be delivered upon conversion of An occasional bank, however, has shown a de- coupon bonds if written request therefor be submitted liberate determination to use Federal Reserve with request for conversion. Coupon bonds will be de- Bank funds for extending its business by tak- livered upon conversion of registered bonds if the regising on new loans much as if funds obtained by tered bonds presented for conversion are duly assigned to rediscount were new deposits. In such cases "The Secretary of the Treasury for conversion and exthe desirable course is pointed out, with such change for coupon bonds" on the form appearing on the insistence as the case seems to require. back thereof; such assignments must be duly executed in the presence of an officer authorized to witness assignments of United States registered bonds. Bonds will be delivered so far as practicable in like denominations as the bonds Extension of Conversion Privilege to First Liberty upon the conversion of which they are respectively issued, unless written request for delivery in other denominations Loan. be submitted with request for conversion. Changes of The following circular addressed to holders ownership will be permitted upon conversions of registered, bonds if the registered bonds presented for conversion have of 4 per cent gold bonds of 1932-1947 of the been duly assigned for transfer in accordance with the first Liberty loan converted and 4 per cent regulations governing assignments of United States regisgold bonds of 1927-1942 of the second Liberty tered bonds. Changes of ownership of registered bonds, Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

330 FEDERAL RESERVE BULLETIN. Antir. 1, 1910. however, can not be effected when the transfer books for I directly to the holders of the bonds surrendered for conthe loan in question are closed, and requests for conversion j version at the time of such surrender, or in the absence of involving such changes of ownership received during any j other written instructions and remittances to cover exsuch period when the transfer books are closed will be penses, will be expressed at the owners' risk and expense. effective during such period only as presentations for con- Registered bonds to be delivered upon conversions, unless version, and the changes of ownership will not be effected | delivered directly to the registered owner or his duly until the reopening of the transfer books. The transfer I authorized representative, will be delivered by registered books for the first Liberty loan converted will be closed mail without expense to, but at the risk of, the registered from May 16 to June 15 and from November 16 to Decemberowner, unless otherwise directed in writing. As the cost .15, and for the second Liberty loan from October 16 to! of transportation of coupon bonds by express is greater November 15 and from April 16 to May 15, in each year, in than by registered mail insured, holders of coupon bonds eacli case both dates inclusive. desiring to present them for conversion are advised to con- For the purpose cf computing the amount of interest sult with their own banks or trust companies, for arrangepayable, bonds presented for conversion under this circular ments may be made, as between Federal Reserve Banks shall be deemed to be converted on the dates for the pay- and incorporated banks and trust companies, for transporment of the semiannual interest on the respective bonds so tation to and from Federal Reserve Banks by registered presented for conversion next succeeding the date of such mail insured of the bonds to be converted and of the bonds presentation. Interest will be paid on registered bonds to be issued upon conversions, the charges in .each case to presented for conversion at the rate of 4 per cent per an- be paid by the respective holders and to be remitted by num to the semiannual interest payment date next suc- the incorporated banks and trust companies to the Federal ceeding the date of presentation for conversion, to the Reserve Banks. Information concerning any such, arrangeregistered owner of the bonds presented for conversion, or ments will be furnished by Federal Reserve Banks to inin case change of ownership has been effected upon the corporated banks and trust companies. conversion before the closing of the transfer books in antici- The Secretary of the Treasury reserves the right at any pation of such semiannual interest payment, to the regis- time to suspend or terminate the extension of the convertered owner of the bonds issued upon such conversion. sion privilege made by this circular upon six months' Registered bonds issued upon conversion will bear interest public notice given in such manner as he shall prescribe. at the rate of 4J per cent per annum from the semiannual The right is also reserved to make from time to time any interest payment date next succeeding the date of presen- supplementary or amendatory rules and regulations govtation for conversion. In the case of coupon bonds pre- erning the exercise of the conversion privilege hereby sented for conversion, all coupons maturing on or before the extended, information as to which may be obtained from semiannual interest payment date next succeeding the the Treasury Department or through any Federal Reserve date of presentation for conversion must be detached and Bank. collected in ordinary course when due. All subsequent CARTER GLASS, coupons must be attached. Coupon bonds issued upon Secretary of the Treasury. conversion will bear interest at the rate of 4£ per cent per annum from the semiannual interest payment date next [Treasury Department. Loans and Currency. Form L. and C. 25 A. succeeding the date of presentation for conversion, and BEQUEST FOE, CONVERSION. will have interest coupons attached thereto covering semi- Only one series of bonds may be entered on this form., and separate form] annual interest payments up to and including the respec- must also be used for (1) coupon bonds, and (2) registered bonds. tive maturities of such bonds: Provided, however, That Dated ,19 . until June 15, 1920, in the case of bonds of the first Liberty To the Secretary o) the Treasury: The undersigned herewith presents and surrenders— loan converted, and until May 15,1920, in the case of bonds 4 per cent gold bonds of 1932-47 of the first Liberty loan converted, S of the second Liberty loan, coupon bonds issued upon con- 4 per cent gold bonds of 1927-42 of the second Liberty loan, S version will have coupons attached thereto covering semi- in {rcifcjfojjed} *onn» and requests that the same be converted into an annual interest payments only uj) to and including June equal face amount of 4-1 per cent gold bonds according to the terms of Treasury Department Circulars No. 114, dated May 9, 1918, and No. 15, 1920, and May 15, 1920, respectively, the bonds so 137, dated March 7, 1010. Special instructions, if any, are given by the delivered being exchangeable on and after said dates, undersigned on the back hereof. respectively, into a new bond or bonds having coupons Autograph signature of holder in full attached thereto covering semiannual interest payments Address, number and street up to and including the respective maturities of such (For delivery of bonds.) bonds. City or town No adjustments of interest will be required upon con- County State 1. Registered bonds will be issued upon conversion of coupon, bondsversions of either registered or coupon bonds under thisI and bonds will be delivered in a different denomination or denominations from the bond or bonds surrendered, if the appropriate form of circular. request appearing on the back hereof is duly executed. Transportation charges upon bonds presented for con- 2. Coupon bonds will be issued upon conversion of registered bonds if the registered bonds presented for conversion are duly assigned to version must be paid by the holders. Coupon bonds to be "The Secretary of the Treasury for conversion and exchange for coupon bonds'' in the presence of an officer duly authorized to witness assigns delivered upon conversions will either be delivered ments of United States registered bonds. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

APRIL 1,1019. FEDERAL RESERVE BULLETIN. 331 3. Changes of ownership will he permitted, subject to the provisions ily available, it has been believed desirable in of said circular No. 137, upon conversions of registered bonds if the registered bonds presented for conversion have been duly assigned for the following pages to present brief descriptransfer in the presence of an officer duly authorized to witness assignments of United States registered bonds. tions of the more prominent systems of in- Following forms to be used only for giving special instructions: 1. If registered bonds are desired upon conversion of coupon bonds usedexes of business conditions which have been this form. Referring to S , face amount, of coupon bonds surrendered here-developed. As is well known, both the Babson with for conversion, the undersigned hereby requests the issue of regis- and the Brookmiro services were instituted tered bonds inscribed in the name of (Mr., Mrs., or (First name in full.) (Middle name or (Last name.) several years ago and represent pioneer work Miss.) initial.) (Or complete legal name of corporation, partnership, or other person.) in the field. Both are attempts to select cer- Address for interest checks (Give full address.) (Number.) (Street.) tain data believed to possess peculiar signifi- (City!) (State.")" cance for the study of business conditions and Signature of person signing request for conversion to combine these data so as to afford a com- 2. If delivery is desired of bonds in a different denomination or denominations from the bond or bonds surrendered use this form. posite picture of general business conditions. Referring to $ ,l face amount, of bonds surrendered for conversion herewith, the undersigned hereby requests delivery of bonds upon On the other hand, both of the recent studies conversion as follows: of Profs. Persons and Michell have thus far Number Denomina- been confined to the former phase of the work, of bonds. tions. ! Total. no attempt at combination being made. SoO ... 100 ... BABSON'S BUSINESS BAROMETER. 500 ... 1,000 ;... The Babson composite plotis based upon three ",000 i... : 10,000 ,. classes of data, designed to show (1) mercantile | 250,000 j. 1 2100:000 :. conditions, (2) monetary conditions, and (3) investment conditions. The first named com- Total (1) I $.. prises statistics of immigration (designed to 1 These amounts must be the same; otherwise request may be disre- show unskilled-labor conditions), value of ga 2 r d C e o d u . pon bonds are not issued in these denominations. building permits, liabilities of failures (designed to show condition of retail trade), and Signature of person signing request for conversion bank clearings. The monetary group includes Bradstreet's index number of commodity prices (designed to show domestic require- Indexes of Business Conditions. ments for money), total foreign trade, foreign money rates (the official bank rates of the During past months the Federal Reserve Bank of England, Bank of France, and Reichs- Board has devoted considerable attention to bank being averaged), and domestic money the construction of a series of indexes of general rates (designed to show the confidence of the business conditions. Careful selection has been banking community). The investment group made from among the data available, and ef- includes crop yields, based upon corn, wheat, and cotton, gross earnings of 10 leading railforts made to remedy deficiencies in the existroads, and stock-market conditions, based ing material. The results have been preupon monthly averages of high and low quotasented from time to time in the FEDERAL RE- j tions for 20 railroads and 20 industrial stocks. SERVE BULLETIN as the various indexes have j As the above statistics are expressed in many been developed. Of late, considerable atten- idifferent units, for example, bank clearings in dollars, cotton production in bales, etc., an intion has been directed to the general subject of | termediate set of "scale figures" has been business indexes, the most recent system to be deintroduced. The scale figures are constructed veloped being that of Prof. W.M. Persons for the as follows: Figures for a certain month for the Harvard University Committee on Economic years 1898 to 1908 are compared, and the Research. The Canadian Bureau of Statistics highest and lowest are selected. Deciles are then calculated for the interval; that is, the difalso undertook a preliminary investigation of ference between highest and lowest figures is available indexes of business conditions in divided by 10 and the figure thus obtained Canada during the past year. Inasmuch as added, successively, to the lowest figure and the results of these investigations are not read- figures derived therefrom. The scale figures 111260—19 5 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

332 FEDERAL RESERVE BULLETIN. APBIL 1, 1919. obtained in this manner for successive months Both seasonal variation and secular trend are set in rows, one row for each month, and are mathematically eliminated from the data zero is placed over the column whose average used in the final presentation before they enter most closely approximates conditions in 1903-4. into the Brookmire barometric chart. The in- Positive index figures, increasing by tens, are dex of seasonal variation is determined by diplaced above the larger amounts; negative viding the figures for any given month, "M," index figures above the smaller amounts. Such for N number of years by the figure for the averscale figures and accompanying index figures age month in N years. To eliminate seasonal are calculated for each of the items noted variation in any given month the figure for the above. Actual figures for the present period month is divided by the seasonal index for that are compared with scale figures and an index | particular month. In order to eliminate secufigure calculated, expressing the position which jlar trend from any given factor, the rate of figures for the present month would assume in secular trend (R) is first determined by dividing the scale. the algebraic sum of increases or decreases for A separate summary figure is next obtained N years by the sum of the total factor for (N — 1) for mercantile, monetary, and investment con- years (the year omitted being the final one). ditions. The index figures for each of the To eliminate secular trend from any given year, items included in a group are added, and the the actual figure is then divided by (1+R)n. sum divided by the number of items. It Of the barometric charts, more than 100 in should be mentioned however that bank clear- number, which have been constructed, in seekings, domestic money rates, and stock market ing statistical measures which move prior to conditions are each assigned double weight. many factors which an economic service seeks The sum of the three summary figures is then to forecast in its regular work, only the most divided by 3, giving a final summary index fig- comprehensive, the United States barometer ure which appears on the composite plot. The chart, is described here as an example of the latter is made up each week on the basis of the method employed. This chart contains three latest figures obtainable on each subject, and factors: (1) The index of banking funds; (2) the thus monthly revision of the figures is made. index of security prices; (3) the index of general Inasmuch as a considerable percentage of business. all statistical factors show a tendency to in- j It is stated that these three graphs move in crease or decrease from one year to the next; chronological order, the banking index rising that is, a secular trend is noted in a large num- first, followed by the stock market index, and ber of cases, allowance for this factor must be finally by the business index. A great rise in made, in order that the fundamental move- the business index in turn produces a fall in ment may not be obscured by the tendency of the banking index, and this is followed in turn two lines to diverge where the secular trend is by the stock market index, and the business different. In order to accomplish this, the index, and the cycle is ready to start again. secular trend is computed each year, although The banking index is based upon (a) the it is not eliminated before combining the vari- total cash and reserves of New York Clearing ous series. The determination of the slope of House banks; (b) the percentage of these rethe line of secular trend, which thus changes serves to loans; (c) the percentage of loans to from year to year, is based on the assumption deposits; (d) the rate on first class commerthat areas above and below this line must be cial paper in New York. The purpose of this equal. index is to show the liquid funds available for speculation in securities, or for working capital THE BROOKMIRE ECONOMIC SERVICE. in business. The stock market index is based upon an It is stated that the theory of forecasting average of 20 industrial and 20 railroad stocks. upon which the methods followed by the The reason for using this index is twofold. Brookmire Economic Service are based, postu- First, to show to the stock market purchaser lates a chronological sequence of business events. just how much of prosperity or depression is The data for most of the barometric indexes being discounted by current stock prices, and constructed by this service have therefore been in the second place, since it moves after the selected because movement in them occurs in banking index and before the business index, point of time prior to some price or other sta- to afford the business man a reliable secondary tistical factor which it is desired to forecast, indicator as to the time when a change in the rather than in an attempt to portray the entire average of business levels and commodity field of business conditions. prices may be expected. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

APRIL 1, 1910. FEDERAL RESERVE BULLETIN. 333 The business index is composed of the follow- 3. Bank clearings outside of New York City. ing factors: 4. Bradstreets' index of commodity prices. (a) Pig iron production. 5. Imports of merchandise into United (b) Building permits. States, values. (c) Unfilled steel tonnage. (United States 6. Values of building permits issued for 20 Steel Corporation.) leading cities. (d) Merchandise imports. 7. Gross earnings of 10 leading railroads. (e) Bank clearings of the United States. 8. Number of shares sold on the New York (f) Bank clearings outside of New York. Stock Exchange. The purpose of this graph is to give a com- 9. Unfilled orders of United States Steel posite picture of the movement of actual con- Corporation. ditions in trade and manufacturing as distin- 10. Tonnage, less lake traffic, of vessels guished from bank and investment conditions entered in the foreign commerce of the United of the country. This index is also stated to be States. a forecaster of coming periods of low or high 11. Bradstreets' number of business failures. money rates, for its rise rapidly exhausts the 12. Rate of interest on 10 American railroad supply of liquid capital, while its fall releases bonds. its capital again, so that the business index 13. Rate of interest on four to six months forms a forecaster for coming movements of commercial paper. the banking index. 14. Rate of interest on 60 to 90 day commercial paper in New York. THE WORK OF PROF. PERSONS. 15. Rate of interest on call loans at the New The December (1916) issue of the American York Stock Exchange. Economic Review contained an article by The first step in the analysis is the isolation Prof. Warren M. Persons on the construction | of the various types of fluctuation which are of a business barometer based upon actual found in the data. As a working hypothesis, data. Prof. Persons has since continued his these are considered as fourfold: (1) A longwork, and the first number of the Review of time tendency, which in technical language is Economic Statistics (January, 1919) contains termed the secular trend; (2) a cyclical movean exhaustive discussion of certain phases of ment superimposed upon the first, the extremes the work, more particularly with reference to being found in periods of prosperity and dethe question of method to be employed in pression; (3) a seasonal movement within the treating the data. year; and (4) residual variations. The four The work represents an attempt to apply to types of fluctuation are, however, not uniform statistical series believed to afford an indica- in the different series, and in consequence indition of business .conditions the refined methods vidual treatment of each series is required. It which have been developed, largely since the becomes necessary first to measure the secular opening of the present century, and which have trend. This is best accomplished in the authus far found their use largely in other fields, thor's opinion by fitting a straight line or curve being employed in particular by the English to the graph representing the original series. biometricians. This at the outset limits the It is recognized, however, that this can be dechoice of data, as it is necessary in order to termined only for the past period, and in cerapply these methods to obtain such figures, tain cases may by no means afford a good basis both annual and monthly, for a considerable for estimating future trend. This appears to period of time. An investigation of this char- be true for certain series at the present time. acter then becomes an examination of the The determination of normal seasonal variamovements of data for certain wrell-known tion in the data is next undertaken. The items which have usually been selected as process is involved and inay conveniently be • indexes of business conditions. In the earlier divided into the following steps: (1) Relative study, based upon yearly data, 25 series were figures are first calculated expressing the absoconsidered, while in the present investigation lute figure for each month as a percentage of the only 17 series of annual data for the years 1879- absolute figure for the previous month; (2) 1913 and 15 series of monthly data for the medians of the month-to-month percentages years 1903-1916 were included. The 15 series are then calculated for each of the 12 months; are as follows: (3) the medians are expressed as a continuous 1. Bank clearings of New York City. series using January as base; (4) they are then 2. Tonnage of pig iron produced in United adjusted so that the discrepancy between con- States. secutive January relatives (due to the secular Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

334 FEDERAL RESERVE BULLETIN. APRIL 1, 1019. tread) is zero; (5) they are changed to a new CANADIAN INDEXES OF BUSINESS CONDITIONS. base by dividing each item in the fourth series by the arithmetic average of that series. The During the summer of 1918 a preliminary problem then remains of measuring cyclical and survey of available indexes of business condiresidual fluctuations. Inasmuch as the theory tions in Canada was undertaken for the of the periodicity of business cycles is rejected, Dominion Bureau of Statistics by Prof. II. and hence no fixed length of line may be set, it is Michell, of Queen's University, Kingston, concluded that cyclical fluctuations can not be Ontario, Canada. Inasmuch as Canadian conisolated by statistical methods from the irregu- ditions, while on the whole bearing considerable lar fluctuations. resemblance to those prevailing in this country, The next step is to correct the original data have not been the subject of the same amount for secular trend and seasonal variation. This of study, it is* believed that a somewhat more is done as follows: Each of the monthly ordi- detailed account of the investigation will prove nates of the secular trend is multiplied by the of interest. index of seasonal variation for that month, The investigation was concerned primarily obtained in the manner stated above. The with an examination of the movements of Canaresulting product is subtracted from the cor- dian data for certain of the well-known items responding item of the original series, and the which have usually been selected as indexes differences are expressed as percentages of the of business conditions. The field of choice respective ordinates of the secular trend. was necessarily somewhat limited, due to the Finally the percentage deviations of the various fact that even for certain of these series data series thus obtained are expressed in terms of were not available for the entire period since their respective standard deviations, in order 1905, which had been chosen for the purpose that the deviations for different series may be in hand; also the fact that certain data, such as expressed in comparable terms. copper and pig-iron production, do not possess significance for Canadian economic life in any The question then remains as to the signifimeasure comparable with their importance in cance of the various series. For example, on the United States. the basis of past experience, what series have constituted good indexes of general business Of the 16 series examined the following conditions % Again, have movements in cer- nine were, tentatively accepted as affording tain series preceded movements in other series, satisfactay indexes, no attempt being made and if so, in what degree ? This problem was to combine the series mentioned: attacked in the earlier article in which yearly 1. Stock prices. data were used. The method employed was 2. Commercial failures. to measure, by means of the Pearsonian coeffi- 3. Immigration. cient of correlation, the degree of correspond- 4. Imports into Canada. ence between various series and wholesale 5. Railroad gross earnings. prices, which was chosen " because of the con- 6. Savings deposits. sensus of opinion of writers on business cycles 7. Bank clearings. that such cycles are preeminently characterized 8. Building permits. by price movements." It was found that the 9. Wholesale prices. following series fluctuated concurrently with It will be seen that the period examined is wholesale prices: of sufficient length to illustrate each of the 1. Gross receipts of railroads. phases of the business cycle, though especial 2. Net earnings of railroads. interest of course attaches to conditions since 3. Coal produced. the outbreak of the war in 1914. 4. Exports from the United States. Special attention has been directed in the 5. Imports into the United States. study to the sensitiveness of the various series, 6. Pig iron produced. and their consequent albility to afford an early 7. Price of pig iron. indication of changes in general business con- 8. Immigration. ditions. From this point of view, a series It should be noted, however, that these gen- obtained from quotations for 10 standard eralizations are based only upon yearly not Canadian stocks, representative of various monthly data, and that moreover the question important industries,1 likewise a series of still remains of the applicability of these statistics of business failures, appear to have generalizations based upon past data to the present. 1 One steel, one milling, and one textile company are represented, the remainder being banking, transportation and public utility enterprises. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

APRIL 1, 1011). FEDERAL RESERVE BULLETIN. 335 ranked highest. The decline of the former 1907, reaching their low level the middle of commenced in September, 1912, the rise of the the following year, and the fall in 1913 in latter shortly thereafter, while the reverse March, the rise commenced again in March, movements commenced in May and April, 1915, prior to the increase in certain of the 1915, respectively. Similar conditions ob- other items noted above. Although figures tained in 1907, highest and lowest points for of imports, in the opinion of the author of the the stock prices series being in February and report, in general may be accepted as affording November, respectively, while for failures the an indication of business conditions within a increase commenced in October, 1908, and country superior to that afforded by figures of continued until August, 1908, the greatest exports, it is conceded that it appears open to rate of increase being in the latter months of doubt whether this still obtains with the change 1907. Bank clearings have also shown a con- which has taken place since 1915 in the relasiderable degree of sensitiveness, commencing tive values of imports and exports. Prior to to fall soon after the opening of 1913, and to 1914 the latter figures were comparatively rise again in May, 1915. The same is true of inelastic, but the phenomenal rise since that building permits in the four western Provinces. time, as well as the fall since September, 1917, Such operations are evidently more specula- have been far greater than in the case of imtive in nature, and more sensitive to change, ports. Export figures, however, are subject both actual and anticipated, in general condi- to a much wider margin of error, and conclutions, in the western than in the eastern Prov- sions based upon tnem must therefore be inces. The decline in the former commenced accepted with extreme caution. Figures of in October, 1913, exactly one year before the immigration and of savings are also found to eastern figures, and the checking of the decline fluctuate in conformity with business condiin 1915 is remarked in the western figures tions, though in the case of the latter variation several months prior to the eastern. More- is relatively slight, and appears practically over, western building, which prior to 1913 only in the rate of growth. The other series was considerably in excess of eastern, fell examined were rejected as less satisfactory until in 1915 it'was practically negligible in for the purpose in hand, and mention of them amount, while figures of eastern building still is omitted here. continued around the $25,000,000 mark. It is interesting to note that, while the above This marked divergence between eastern and series moved in considerable harmony with each western figures opens up an interesting and other up to approximately last year, of late important field of investigation, and if a com- there has been considerable diversity exhibited, prehensive series could be constructed for the certain of the series continuing upward, while agricultural west as opposed to the industrial others, accorded equal recognition as guides to east, valuable results might be arrived at. general business conditions, have moved in the Unfortunately this is not possible, but several reverse direction. In other words, in passing highly significant series of statistical tables from the phases which may conveniently be are available, notably in bank clearings. Here termed historical to a consideration of the the same phenomenon as was seen in building present situation, the difficulties multiply and permits presents itself, the western figures the part played by judgment increases greatly. showing more sensitiveness than the eastern. This, of course, is no more true of Canadian than Thus in January, 1919, while the eastern clear- of American experience. Our series have ings still show a fair degree of buoyancy, the shown similar diversities in direction of movewestern figures are beginning to drop, notably ment. On the whole, it appears that Canadian for the Winnipeg clearing house. Steps are parallels American experience somewhat closely. being taken to push this investigation further In the case of certain of the data, the correby taking the figures for the two representative spondence is seen also in the seasonal variations. houses in east and west, Montreal and Winni- To mention but a single instance, the similarity peg, as far back as possible by months com- is especially pronounced for exports,^ both mencing with January, 1894. Gross earnings countries having a heavy movement of agriof the three large Canadian railroad systems cultural products toward the close of the year, reached their high level in June, 1913, and though in the case of Canada there is also a rush continued to decline until April, 1915. While to get grain to the seaboard in advance of the imports commenced to decline in September, closing of navigation for the winter. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

336 FEDERAL RESERVE BULLETIN". APRIL 1; 1919. The investigation is still under way, and the Another feature of the computation requires foregoing results are merely tentative. A de- explanation. Such raw materials as rice and tailed mathematical analysis of the data is now potatoes are used for the most part in their being made, more particularly for the purpose | original state, whereas other articles like of measuring the divergence of the yearly and| wheat, cotton, and pig iron undergo a manumonthly figures from the normal secular facturing process before entering into contrend, and a full and detailed report on the sumption. Not to take account of this fact subject will be published in due course by the would give a disproportionate importance to Dominion Bureau of Statistics at Ottawa. the agricultural staples. A series of " fabricating factors," based on the 1914 Census of Manufactures, was therefore prepared. These Increase In the Production of Raw Materials, factors represent the percentage borne by the 1913-1918.1 value added by manufacture to the cost of materials. The value added by manufacture Much interest attaches to the problem how as defined by the Bureau of the Census is the far the rapidly expanding volume of business in difference between the value of the manufacthe last six years has been due to an increase tured product and the value of the materials in the volume of physical goods produced and entering into manufacture. While these fachow far it represents merely a rise in prices. tors have a wide margin of uncertainty it was On account of the scantiness of statistics of considered better to use rather rough estimates production this problem can not be studied than, to introduce no correction whatever in a thoroughly satisfactory manner. The under this head. best line of attack in view of the material avail- Beside the index number of the available able is to take production and import figures supply of raw materials, there was calculated of staple raw materials and interpret the from data for the same 90 articles, an index results on the assumption that the total amount of the increase of prices, in which prices of of all goods produced varies roughly as the each year were weighted by production plus quantity of these raw materials produced in, imports in 1917. Finally, an index of the or imported into, the United States. current annual values of the raw materials In the preparation of the subjoined tables produced and imported was computed. In estimates of production, or imports, or pro- this series, the annual supply of each staple duction plus imports, as the case required, by was multiplied by the annual price. years, 1913-1918, inclusive, were secured for In all three series of indices the commodities 90 staples, and in calculating the index number were classified as coming from farms, forests, from these figures the supply available each or mines. The actual figures in millions of year was weighted by the average price in 1917. dollars have little significance, except as raw These 1917 weights were applied without material for the index numbers, which were change to the production figures of each of the computed with 1913 as the basis. six years covered. The year 1917 was chosen In the table for "all commodities" the genas the base year for weighting because the eral result of the study is indicated in the present computation was made in connection form of three sets of index numbers. The with the investigation into prices during the first set, showing an increase from 100 for war, conducted by the Price Section of the 1913 to 116 for 1918, indicates the increase in War Industries Board. the physical volume of output, the second set, In this larger investigation the prices of all showing an increase for the same period from. the commodities included—some 1,450 in 100 to 192, indicates the rise in prices, while number—were weighted by production plus the third set, showing an increase from 100 to imports in 1917, in order to reflect war-time 225, reflects the combined effect of increase in conditions. output and rise in prices for the period under i Contributed by Wesley C. Mitchell, of the War Industries Board. review. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

APEIL 1, 1910. FEDERAL EESEEVE BULLETIN. 337 Index numbers of the production of raw materials, of the War Operations of the Bank of France. prices of raw materials, and of the annual value of raio materials produced, by years, 1913-1918. The last annual report of the Bank of France, on which the present review is based, contains [Millions of dollars.] an account not only of the operations of the ALL COMMODITIES (90 COMMODITIES). bank for the }xear 1918 but also summarizes in an interesting account the operations of the bank during the entire period of the war. Aggregate value. Index numbers. On December 24, 1918, the date of the balance sheet presented in its last annual report, p Y p t r r t i 1 o e i m i 9 a o d c 1 r e n e u 7 l s s c y . - 1 d Y 9 p t u 1 i e r c m 7 i a t c i r e p e o l s r s y n o . - d Y y p t u i p e r e c m i r a a t c o i r e r e o - l l s y s y n. Y p t ™ e i r m a ic £ r e e l f s s y . 'd 19 u t 1 t l 7 t m i o o p s n ro - - d Y y p u t p i e e r c m r i a a t c o i r r e e - o l l s y s y n . I I | t a a c h o n b e n d r o s B i a s s a d i t l n e v d k o e f r o o f f 5 i n , F 3 7 , r 9 4 P a 4 6 a n 0 r c i m s e m , i , l h i l l a e i l o i t l o d n n i t a f s f r r t a a o b n n t r c a c a s l s n . c a o h m f T o g o h u o f i f l n s i d c t e a a o s m n , f d o g a u o 3 n l n 1 d d t 8 | million francs of silver in vault and of 2,037 1913. S?30,375 $19,973 517,390 I 100 100 100 I 1914. 30,207 19,224 16,694 ! 99 96 98 'million francs of gold held abroad, 1,955 millions 1915. 32,482 21,418 18,455 107 107 106 of which was held in England. This gold held 1916- 33,700 23,363 22,785 111 117 131 1917. 3-1,748 31,748 34,748 114 174 200 in England represents loans by the bank to 1918. 35,169 38,251 i 39,153 116 192 225 the British Exchequer and the Bank of England, to be repaid gradually as French obliga- FARM PRODUCTS—VEGETABLE (25 COMMODITIES). tions to England for supplies and other materials are liquidated. Among the bank's 1913. $14,151 $8,798 , $8,096 100 100 1 10!) assets there is also shown an item of 1,036 mil- 1914. 15,053 8,351 ; 8,051 106 95 j 99 lion francs standing to the credit of the bank 1915. 15,818 10,326 i 8,900 112 117 111 1916. 14,142 9,781 . 9,189 100 111 114 on the books of the United States Treasury. 1917. 15,188 15,188 i 15,188 107 173 ! 188 1918. 14,997 16,843 1 16,694 106 191 | 206 Other credits held abroad amounted to 1,300 million francs. The largest asset item is rep- FARM PRODUCTS—ANIMAL (13 COMMODITIES). resented by the 17,150 million francs advanced to the French Government and the 3,526 million francs of short-term government securi- 1913. $S,011 ! $5,618 985 100 ' 100 100 1914. 7,987 ; 5,785 ;>,091 100 1 103 102 ties advanced by the French Treasury to allied 1915. 8,600 ! 5,707 •r>>387 107 i 102 108 governments and discounted by the bank. Of 1916. 9,116 I 6,461 6,455 114 ' 115 129 1917. 9,021 ; 9,021 9!021 113 ! 161 181 the total assets shown as 34,114 million francs 1918. 10,105 " 10,869 12,249 126 i 193 246 the amount of Government securities held by the bank was no less than 60 per cent. Nearly FOREST PRODUCTS (23 COMMODITIES). 90 per cent of the total liabilities of the bank is represented by the 30,250 million francs of 1913-.... SI, 329 S941 $982 ! 100 100 ! 100 bank notes in circulation. The only other 1914.... 1,285 877 889 i 97 93 i 91 liabilities of any magnitude were current and 1915.... 1,281 870 878 j 96 92 ! 89 1916.... 1,521 1,126 1,229 ! 114 120 125 deposit accounts in Paris and at the branch 1917.... 1.481 1,481 1,481 ! 111 157 ; 151 1918.... i;3i3 1,635 1,445 ! 99 174 : 147 offices amounting to 2,366 million francs, and the current account of the Treasury, amounting to 112 million francs. MINE PRODUCTS (27 COMMODITIES). In the early months of 1914 the bank's discounts had fallen as low as 200 million francs 1913... - S6, 834 84,591 1914... 5,839 4,183 as the result of slackened business activity and 1915... 6,733 4,485 1916.... 8871 5,959 the prevalence of payments in cash. In 1917 1917... 8,993 8,993 the average discounts had risen to 606 million 1918... 8,695 8,828 ! and in 1918 to 1,086 million francs. At the time of the declaration of the mora- FISHERIES PRODUCTS (2 COMMODITIES). torium at the outbreak of the war the total i debts affected amounted to 4,476 million francs. 1913.... $50 i $25 S20 100 100 100 1914.... 43 i 28 19 86 112 95 This amount was reduced to 1,028 million 1915.... 5® • 30 23 100 120 115 francs by December 24, 1918. The decrease is 1916.... 50 i 36 27 100 144 135 1917.... 65 • 65 65 130 260 325 due largely to the decree of December 29, 1917, 1918.... 59 76 70 118 304 350 and the law of July 26, 1918, which lifted Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

338 FEDERAL RESERVE BULLETIN. APRIL 1, 1919. the moratorium for beneficiaries of war profits transfer of a 200 million dollar credit on the and for residents in the interior of the country books of the United States Treasury in Auwho had been able to continue agricultural gust, 1918. The bank attaches great imporoperations. A further lifting of the mora- tance to the American credit as a valuable torium as conditions permit is recommended reserve. by the bank. In addition to the 17,150 millions of loans to Advances on securities, which were 729 mil- the French Government the bank carried, as lions during 1913, rose during the first two mentioned above, 3,526 millions of loans to years of the war to 1,222 millions in 1916, but foreign governments, the two items amounting owing to an abundance of liquid funds, de- thus to over 20,500 millions of immobilized clined to about 1,000 millions during 1918. assets. The bank considers it its main duty The foreign exchange activities of the bank now to reduce these enormous unliquid assets. may be summarized as follows: During the The bank states that it realized from the first months of the war the bank bought foreign beginning the dangers of large note issues but exchange in order to assist exporters in realiz- it had no alternative, and, pinning its hopes to ing on their foreign accounts, but after this first victory, it issued sufficient notes to cover the period the bank became a large seller of foreign Government's requirements, the total notes in exchange. A representative of the bank was a circulation on December 24, 1918, being 30,250 member of the commission to the United States million francs.1 in 1915 which, jointly with England, arranged Great activity was shown by the bank in for the loan of 500 million dollars. In 1916 an cooperation with the Government in the floataagreement was made with England which tion of war bonds, a,nd the total amount of war caused a decline of the premium on sterling bonds sold through the bank was about 33,000 exchange from 13$ to 3 per cent and of dollar million francs, in addition to which 25,000 exchange from 16 to 5 per cent between 1916 millions of short-term war paper were placed and the present time. Premiums on neutral through the bank. Of the 30,000 millions of exchanges remain high, however, ranging from the last loan, 45 per cent or over 13,000 millions 10 to 14 per cent. were subscribed through the bank. The bank No gold has been exported since the United received 1,520,000 subscriptions, and the States entered the war. The total loss of gold amount actually realized was 9,479 millions, in vault during the war amounted to 3,022 representing 535 millions of " rente" or annual million francs, of which 1,955 million was interest. The issue of the fourth loan inloaned to England, as explained above. A creased the gold reserves by 25 million francs first repayment of 58 million francs has been and enabled the Treasury to redeem 2,500 made on account. Shipments of gold to the millions of its obligations to the bank. This United States prior to 1917 helped to create an resulted in a decrease of the note circulation by easy money market in that country, enabled 2,087 million francs between November 7 and the bank to borrow money at lower rates in December 5 of the past year. the United States and to buy, during the By a law passed December 20, 1918, the period of the war, about 9,000 million francs of bank's privilege to issue notes has been exforeign exchange, mostly in England. The tended for 25 3^ears beginning January 1, 1921. outflow of gold prior to 1917 was offset in part By the agreement of September 21, 1914, by deposits of the public, and during the early ratified by the act of December 26 of the same months of the war by some purchases of gold year, interest on the loans to the Government abroad, the total additions amounting to will rise from 1 to 3 per cent after one year about 2,400 million francs. The total gold following cessation of hostilities, the proceeds stock of the bank, including the 1,955 million from this interest to be applied to an amortizalent to England, was 5,477 millions at the end tion fund. The extension of the bank's charter of December, 1918, as compared with 4,141 provides that the bank make a special contribumillions on July 30, 1914. tion, in lieu of war-profit taxes, to be applied to Loans to the Government, which had been the amortization fund, this contribution to conauthorized by Parliament up to a maximum of 21,000 millions, had actually reached a total 1 This amount compares with the following: Millions of 17,150 millions at the end of 1918. During of francs. the war the Government was able to reduce Mar. 26,1914 (minimum for the year) f>,743 Bee. 24, 1914 10 043 its debt to the bank b t y 8,850 millions from the Dec. 24,1915 13,216 proceeds of the great popular loans and by Bee. 23,1916 16,580 Bee. 22, 1917 '. 22,336 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

APRIL 1,1919. FEDERAL RESERVE BULLETIN. 339 stitute 50 per cent of the 1 per cent interest on laws of November 17, 1897, and December 29, 1911. The the loans to the French Government and 85 per excess shall be treated as a reserve and credited to a special cent on the interest received on loans to foreign account of the treasury until legislative action shall have governments. This law has been made retro- been taken to fix the terms under which the fund is to be active, as of January 1, 1918. The amount to used for credit purposes. be contributed by the bank toward the amorti- Article 4. No regent of the Bank of France shall be an zation fund prior to 1918—that is, for the period administrator of financial companies of the countries at August 1,1914, to December 31,1917—has been war with France. arbitrarily fixed at 200 million, francs. Since Done in Paris, December 20, 1918. the passage of the law of December 20, 1918, APPENDICES. the bank has begun to make the prescribed payments, and on the balance sheet of Decem- Agreement of October £6, 1917. ber 24 the amortization fund figures at 437 The undersigned, L. L. Klotz, deputy, minister of million francs. By this arrangement the bank finance, on behalf of the Government, party of the first may be obliged to pay war-profit taxes for many part, and Georges Pallain, governor of the Bank of years after other enterprises will have become France, authorized by order of the general council of the exempt from payment of such taxes. The Bank of France of October 25, 1917, party of the second agreement also carries a progressive scale of part, have agreed on the following arrangements, which taxes on circulation. (See text of act of Dec. will become effective when ratified by a law renewing the 20, 1918, on p. 340.) The bank is also to pay charter of the Bank of France for 25 years beginning to the treasury an amount equivalent to the January 1, 1921: total outstanding circulation of obsolete type Article 1. The benefits of discount operations provided (blue without pink background), and of the for by the organic statutes of the bank (article 9 of the small notes of 20 and 25 francs issued prior to decree of January 16, 1908) are extended to apply to mu- 1888. Furthermore, the bank is to pay the tual credit societies (socie*tes de caution mutuels) engaged Government the equivalent of any excess in commerce and industry on a small or moderately large dividend above 240 francs per share of stock (of the par value of 1,000 francs).1 The Article 2. Beginning with the fiscal year 1918 there amount paid over to the Government as a tax shall be paid to the Government the following percenton circulation and as a surtax on dividends will ages of the extraordinary earnings from the discount of be applied by the Government to credit opera- French Treasury notes for the benefit of foreign governtions that will facilitate the industrial rehabiliments and from the interest on advances to the Governtation of the country. ment: 85 per 100 of the net earnings from treasury notes for the benefit of foreign governments and 50 per 100 of the interest on advances to the Government, after deduct- Law Renewing the Charter of the Bank of France. ing the supplementary interest of 2 per 100 provided for The Senate and Chamber of Deputies have passed and by articles 4 and 5 of the agreement of September 21, 1914, the President of the Republic promulgates the following ratified by the law of December 26, 1914, said interest to law: be credited in its entirety to the reserve and amortization Article 1. The privilege granted to the Bank of France account provided for by article 5 of the said agreement. by the laws of the 24 Germinal, year XI, April 22, 1806, No further payment shall be due on account of the above- June 30,1840, June 9,1857, and November 17, 1897, is ex- mentioned items, nor shall the respective amounts be tended for 25 years, beginning January 1, 1921, and end- included with the productive circulation. ing December 31, 1945. The amount of the payment fixed in this manner shall Article 2. The agreement made on October 26, 1917, and be credited to the special reserve and amortization fund supplement thereto dated March 11, 1918, also supple- in proportion as the earnings from the above items are rementary agreements made on March 11 and July 26, 1918, ceived by the bank. between the minister of finance and the governor of the For the period between August 1,1914, and the end of the Bank of France are hereby ratified. The agreements are year 1917 the bank shall credit to this account, as soon as exempt from stamp and registration taxes. the law ratifying the present agreement shall have been Article 3. The proceeds of the additional contributions made public, the sum of 200 million francs in liquidation imposed by Article 4 of the agreement of October 26, 1917, of the amount chargeable to the year 1917 on the interest as well as the portion of profits eventually to be paid to the described in paragraph one of this article. Government in accordance with the supplementary agree- This payment of 200 millions for the period before 1918 ment of July 26,1918, shall be used each year for purposes and the payments prescribed in the first part of this of agricultural credit up to an amount required by the article for subsequent years shall take the place of the i Quoted in the market at 5,550. general war profit tax. 111260—19 6 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

340 FEDERAL RESERVE BULLETIN. APRIL 1, 1919. Article 3. Article 5 of the agreement of September 21, These provisions shall become effective as of January 1, 1914, is modified as follows: 1918. "The special account shall he charged with the capital Article 5. The permanent advances of the Bank of France amounts of the unpaid bills held immobilized as the result to the Government, resulting from the agreements of June of the extension of maturity dates as fast as the bank, after 10, 1857, March. 29, 1878, October 31, 1896 ? November 11, discontinuing the extension of maturities, shall transfer 1911, and amounting together to 200 million francs, are the amounts to account of defaulted prewar bills. extended to the time of the expiration of the charter. These advances shall bear no interest. To guarantee their " The account shall likewise be debited with the capital payment there shall be given to the Bank of France a amount of defaulted credits resulting from payments treasury bond of a maturity coincident with the maturity made to allied and neutral correspondents in counterpart of these advances. of settlement in France through the intermediary of the bank of bills or transactions antedating August 4, 1914. Article 6. The bank shall continue the existence of branches, offices, and agencies (villes rattachees) estab- "The bank shall continue to administer the portfolio lished beyond the obligations imposed by the law of of defaulted bills and credits and shall credit the above November 17, 1897, and the agreement of November 11, account with such subsequent payments of principal as it 1911. may be able to collect thereon.1 Within 10 years following the promulgation of the law "At no time shall the total credit to this account be ratifying this agreement, 12 branches and 25 offices shall in excess of the total of extended bills and credits dealso be opened. scribed above. The excess as well as all other amounts The bank undertakes moreover to extend its collection which ultimately are to be credited to the special account service to 50 points (villes rattachees), which shall include shall be applied in reduction of the Government debt, the administrative centers of all arrondissements and of or be directly credited to the treasury account when the cantons, having 6,000 or more inhabitants, that have no Government debt shall have been repaid." bank service. Article 4. In calculating the payments provided by Article 7. The Bank of France shall continue to effect article 5 of the law of November 17, 1897, there shall be gratuitously payments of checks and transfer drafts for added to the amount obtained by multiplying the average account of the treasury drawn by treasury agents, and to productive circulation by the discount rate, after de- lend gratuitous aid to the Government upon terms fixed duction is made of the sums, if any, divided between by existing decrees in facilitating the settlement through the bank and the Government in accordance with article transfer of drafts, approved and found correct, in favor of 12 of the said law, the total interest received by the bank creditors of the treasury and departments having open from securities extended under moratorium; and to the accounts either at the Bank of France or with some sum thus obtained shall be applied a rate of 5 per 100. banking house that in its turn has an account with the If during any period the discount rate shall exceed 3.5, Bank of France. 4, or 4.5 per 100, this proportion for a corresponding period It shall also lend gratuitous aid to the treasury on the shall be 7.5, 10, and 12.5 per 100, respectively. same conditions in effecting the settlement through transfer On the basis of the proceeds of the bank's productive for account of treasury agents of drafts drawn by communes operations determined as above, there shall be levied and public bodies for the benefit of their creditors having each year, after deducting the payments explained above, open accounts at the Bank of France or some other banking a supplementary charge of 20 per 100. In this calcula- house which in its turn has an account with the Bank of tion all amounts up to 50 million shall be reckoned only France. at one-fourth of their actual amounts; amounts between It shall also undertake without charge the collection of 50 and 75 million, at three-eighths; amounts between 75 checks drawn or indorsed to the order of treasury agents or of the Government monopolies. and 100 million, at four-eighths; amounts between 100 Article 8. The Bank of France undertakes to collect for and 125 million, at five-eighths; amounts between 125 all its customers without commission all bankers' checks and 150 million, at six-eighths; and amounts between 150 and 175 million, at seven-eighths.2 (cheques barres) drawn on banking points and checks drawn on banks belonging to a clearing house or on their These ordinary and supplementary payments shall in correspondents. no way take the place of taxes imposed on the bank by It undertakes to pay and settle over its counters withexisting law. Any increase of these taxes or the creation out expense all bills of its customers, and also to effect of new taxes which might apply to the operations subtransfers without expense between customers residing in ject to the above payments shall be reduced by the amount different places. of the latter, and only the excess, if any, shall be collected. Article 9. This agreement is exempt from stamp and 1 This provision is designed to recoup the bank for losses, aggregating registration taxes. about 500 million francs, representing Russian credits guaranteed by the Russian State Bank and Government as well as the Bank of France. Done in duplicate in Paris the 26th of October, 1917. 2 The purpose of the provision is to make the payments increase Read and approved. progressively as earnings increase. When earnings exceed 175 million (Signed) GEORGES PALLAIN. francs, the full rate of 20 per cent applies; for lesser amounts a lower rate in effect applies, for example, 10 per cent on earnings of 75 to 100 Read and approved. millions.—Editor. (Signed) L. L. KLOTZ. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1919. FEDERAL RESERVE BULLETIN. 341 Amendment to the agreement of October 26, 1917, betweepnrovided that the net profit received by the treasury shall the minister of finance and the governor of the Bank of not fall below the 5 million francs paid in accordance with France. the agreement of November 21, 1911. Article 3. The present agreement is exempt from stamp The undersigned, L. L. Kiotz, deputy, minister of and registration taxes. finance, representing the Government, party of the first Done in Paris the 11th of March, 1918. part, and Georges Pallain, governor of the Bank of France, Read and approved. authorized by order of the council of the bank, dated February 28, 19.1.8. party of the second part, agree: (Signed) GEORGES PALLAIN. Read and approved. Article 1. Article 3 of the agreement of October 26,1917, is amended by adding the following: (Signed) L. L. KLOTZ. "The bank will credit the amortization account with Supplementary agreement to the agreement of October 26,1917. interest calculated at the net rate of the advances to the Government, after deducting the stamp tax and the pay- The undersigned, L. L. Klotz, deputy, minister of ments provided for in article 2 of said agreement. finance, on behalf of the Government, party of the first '' This interest shall be credited to a memorandum ac- part, and Georges Pallain, governor of the Bank of France, count on the last day of each semester. authorized by order of the general council of the Bank of {* At the time of the final liquidation of the amortization France of October 25,1917, party of the second part, have account a summary statement shall be prepared of the agreed as follows: amounts successively applied to amortization or credited Article 1. Beginning with the fiscal year 1918 all disto the Government on this account. tribution of annual dividends above 240 francs per share "The bank shall pay to the treasury a portion of the net above taxes will obligate the bank to pay to the Govamount stated in the memorandum account proportional ernment an amount equal to the net excess dividend. to the total amounts credited to the Government in accord- Article 2. The present agreement is exempt from stamp ance with the above-described summary statement." and registration taxes. Article 2. The present act is exempt from stamp and Done in Paris the 26th of July, 1918, in duplicate. registration taxes. Read and approved. Done in duplicate in Paris, March 11, 1918. (Signed) GEORGES PALLAIN, Read and approved. Read and approved. (Signed) GEORGES PALLAIN. (Signed) L. L. KLOTZ. Read and approved. Examined as an addition to the law of December 26. (Signed) L. L. KLOTZ. 7 1918, discussed and passed by the Senate and Chamber of Supplementary agreement of March 11, 1918. Deputies. Done in Paris, December 20, 1918. The undersigned, L. L. Klotz. deputy, minister of The President of the French Republic, finance, on behalf of the Government, party of the first part, and Georges Pallain, governor of the Bank of it. POINCARE. Countersigned by: France, authorized by order of the general council of the The Minister of Finance, Bank of France of October 25, 1917, party of the second part, have agreed as follows: L. L. KLOTZ. Article 1. In accordance with the general principle that the Government alone has the right to benefit from the failure by holders of notes to redeem them, the Bank of New Plan of Price Stabilization. France will pay to the treasury, on dates fixed hereafter, The new Industrial Board of the Department an amount corresponding to that of all outstanding obsolete notes, engraved in blue without the pink background, and of Commerce, which has been appointed with of all small notes of 20 and 25 francs issued before 1888 andthe approval of the President of the United still in circulation. States, has issued to the press the following A payment of 5 million francs having been made on statement of its organization and purpose, account in accordance with the agreement of November 28, together with a review of the conditions which 1911, a further sum of equal amount shall be paid to the treasury during the month following the ratification of have led up to its appointment at the present this agreement. The balance shall be paid on January 2, time. The intention of the board to work in 1923. close cooperation with industries, and with or- Article 2. When the amount of these notes in circulation ganizations properly authorized to speak on beshall have been reduced below the amounts paid in to the half of their respective industries, is made clear treasury, the Government shall undertake the redemption of such notes as will be ultimately presented for payment, by this general statement. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

342 FEDERAL BESBRVE BULLETIN. APRIL 1, 1919, The personnel of the new Industrial Board I. The condition—Continued. is as follows: (6) Still—Continued. 3. Some mills and factories are idle—few are George N. Peek, chairman; formerly vice running full. president Deere & Co., Moline, 111.; formerly 4. Construction of public and private works has commissioner of finished products and acting not begun. vice chairman War Industries Board. 5. Nonemployment is spreading. Samuel P. Bush, president Buckeye Steel II. The cause: (a) War required production abnormally increased Casting Co., Columbus, Ohio; formerly direcgenerally and abortively increased respecting certain comtor of Facilities Division and Chief of Forgings, modities specially needed for war. This irregular increase Guns, Small Arms, and Ammunition Section, was secured by enormously increased prices. Conse- War Industries Board. quently the sudden termination of war left a highly inflated Anthony Caminetti, Commissioner General and very irregular market which is generally far above what the peace demand will support and which is not of Immigration, Department of Labor, Washhomogeneous, many prices being abortively above their ington, D. C. place in the normal pattern. Thomas K. Glenn, president Atlantic Steel (6) This situation was originally created by the abnor- Co., Atlanta, Ga. mal operation of the law of supply and demand, stimulated George K,. James, president Wm. R. Moore by the great need of the European countries for war materials before this country entered the war, but after we Dry Goods Co., Memphis, Tenn.; formerly entered the war the law of supply and demand was adchief of Cotton and Cotton Linters Section, journed and was replaced by such new and powerful forces War Industries Board. as priority certificates, compulsory and commandeering T. C. Powell, director Capital Expenditures, orders, export and import restrictions, and price fixing. United States Railroad Administration; for- These forces worked through comprehensive agreements and cooperation between the Government and industry. merly representative of Railroad Administra- Therefore, it may fairly be stated that the existing condition on War Industries Board, and formerly tion was not brought about by the normal operation of the vice president Southern Railway Co., Cincin- law of supply and demand. nati, Ohio. (c) The normal operation of the law of supply and de- William M. Bitter, of West Virginia, presi- mand can not cure what it did not cause, first, because it dent W. M. Ritter Lumber Co.; formerly divi- can not operate until buying begins, and, second, because buying can not begin until we have a more normal, stable sion chief and assistant to the Commissioner of and homogeneous market. Finished Products, War Industries Board. (d) Everybody knows that some prices must fall. No one dares buy until they do fall and even then everybody STATEMENT OF THE INDUSTRIAL BOARD. will wait to see how far they fall. Individual action in The President has authorized the appointment of a lowering selling prices is therefore timid, unscientific, and board to address post-war stagnation in commerce and long drawn out. It can not render the market uniform or industry. The condition, its cause, its remedy, the results stable, but on the contrary renders it unstable, dangerous to be expected and the objections to the course purposed and panicky. The law of supply and demand would cure are briefly analyzed below: the situation eventually, but can we afford to wait, first, I. The condition : through a period of suspicion and uncertainty, then (a) Although— through a panicky crash in all markets, and then through 1. Commercial stocks are depleted. chaotic readjustment? By sane and temperate action all 2. There is plenty of money. this can be avoided and the law of supply and demand 3. Building and construction are several years in helped over the gap between hold-over war prices and a arrears of necessity. stable level. 4. A long period of enforced economy is greatly (e) Some uncertainty results from governmental accurelieved. mulation of facilities and raw, finished, and partly finished 5. Markets are in prospect in all parts of the materials, which must be fed very carefully into the marworld. ket. This situation requires the cooperation and advice (b) Still— of industry. 1. Buying is timid and has been decreasing in III. The remedy: volume. (a) The condition must be cured as it was caused. It 2. Money is also timid and remains in bank. was not ocaused by the normal operation of the law of supply Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

APRIL 1, 1910. FEDERAL RESERVE BULLETIN. 343and demand but by general, comprehensive cooperation V. Objections to governmental purpose shortly anand agreement between industry and government. It swered : must be cured by the some kind of cooperation and agree- Objection (a): Business resents governmental interferment—a consummation possible only at the instance and ence and control, which is to be avoided rather than enwith the approval of government. couraged. Let conditions alone, and the law of supply (6) Wholesome cooperation in American business at and demand will cure all evils. governmental instance was proved in the War Industries Answer: The war developed a new thing in govern- Board (W. I. B.). Governmental control as practiced by ment—cooperation and mutual help between government the W. I. B. is no longer necessary, but cooperation and and industry in which government appeared not as a agreement in industry at governmental instance and with policeman, and not as a jealous guardian of a suspicious governmental approval is necessary to bring the law of character, but as a friend and helper. This idea proved supply and demand back into normal operation and to let itself. What is proposed is not governmental control.. loose prosperity. The board has no power of control. It is proposed to pro- (c) To this end the President has authorized a board, vide a forum in which industry can meet and agree on a largely of W. I. B. men, operating on W. I. B. ideals, minus policy for itself at the instance and with the approval of W. I. B. control, to call industry together, group by group, government, which will help the law of supply and demand and let them decide on prices to be offered to the Nation over the gap between hold-over war prices and a stableas the governmentally approved judgment of assembled level. industry on a price scale low enough to be stable, homo- Objection (b): Business and industry will not come into a geneous throughout the whole fabric, and founded so governmental conference unless there is a power of comsolidly on a comprehensive review of conditions as to en- pulsion. courage general buying, including that of the railroads and Answer: The experience of the War Industries Board other governmental agencies, and the resumption of normal utterly disproves the criticism. It has been argued that activities. patriotism impelled business and industry to the War- IV. Results to be achieved: Industries Board. Patriotism is not adjourned with the (a) Basic commodities such as steel, building materials, closing of the war. textiles, and food will be considered first and brought to Objection (c): War prices were fixed at such a level as a stable basis. The governmental policy, as expressed by to insure the production of many high-cost and inefficient the bill to authorize purchase by the Government of wheat producers. What is proposed would shut off this proat the guaranteed price and resale of it at the world price, duction. is to assist in bringing prices of basic commodities to nor- Answer: This production is not needed in peace. The mality by bringing down the cost of living. It is hoped American people can not be expected to support ineffithat these steps alone will automatically operate to reduce ciency in the enterprises that serve them with the necesthe price of fabricated articles. If they do not do so in any saries of life or to maintain production not normally particular case, the industry affected will be invited into needed. Inflated production above that which would conference. be supported by the law of supply and demand must- (6) As soon as a stable and wholesome scale of prices is cease, and will do so eventually, whether or not the achieved, the cost of living will have so far been reduced proposed x>lan is adopted. as to create automatically reductions in the price of labor Objection (d): Such readjustment must necessarily rewithout interfering with American standards and ideals ! quire redistribution and readjustment of labor. for the treatment and living conditions of labor, and thus I Answer: This is quite true. It is necessary. The diethe last inflating element will have been withdrawn from | tribution and allocation of labor to war industries has prices. It is believed that industry will agree that the ' upset the normal pattern in this country for four years.. cost of living must be substantially reduced before labor ! What is proposed is a stimulated peace industry which. should be asked to accept lower wrages and thus industry | will employ as much or more labor as did war industriesshould stand the first shock of readjustment. especially considering the loss of man power, due to (c) The assurance to the country of a market stabilized decreased immigration, loss by influenza, war, and prob r at the lowest reasonably expected level will loosen such a ably increased Army and Navy. That it will employ them' flood of buying for the re-creation of stocks, the making up in different places and at different tasks is inevitable, of arrears in the building program, the feeding of needs whether the proposed step is taken or not. long starved by economy, and the invasion of world mar- Objection (e): A general reduction in selling prices now kets as may stand unprecedented in this country. From will force industry and commerce to take a loss on products, the stable level thus reached by cooperation we may ex- purchased at war prices. pect a healthy and normal condition created by the com- Answer: This is true and inevitable whether the pro plete and unhampered operation of the law of supply and posed plan is attempted or not, but under the pro-posed! demand. | plan better adjustments are possible;, buying will begiii Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

344 FEDERAL RESERVE BULLETIN. APRIL 1, 1010. immediately, the overhead of continuing high-cost opera- The reduction in the price lists may involve the necestions through a period of stagnation is eliminated, and sity of some high-cost plants either shutting down tempofinally much of the loss will be recouped by buying at rarily or running at a loss for a period, but it is expected fair prices and selling in the inevitably increasing market that with an increased volume of business soon to be that will result from the normal operation of the law of developed a reasonable return to the average and better supply and demand under prosperous conditions. than average producers will be afforded. In view of the VI. In conclusion: higher costs developed throughout the world as a result It is expected that the activities of the board will be of the war, a return to anything like pre-war prices is temporary and are intended only to give governmental regarded as out of the question. It is expected that other assistance to aid the law of supply and demand in resum- industries as well as the consuming public and labor will ing its normal functions. recognize their obligations in the circumstances and The splendid cooperation of American industry during cooperate in the same generous spirit as has the steel the war leads to the belief that it may continue and carry industry. us safely through the trying period of readjustment. MARCH 21, 1919. Surely, with our fundamental conditions so sound, there "After careful consideration and full discussion relating is every reason to believe that we may bridge the gap to cost of production and all other facts and circumstances between war and peace with the same courage and relating to the iron and steel industry, representatives of fortitude that always mark the American business man the industry submitted to the industrial Board of the Dein his dealings with large affairs, and thus escape the un- partment of Commerce a schedule of proposed reduced fortunate depressions which the country has suffered prices of the principal iron and steel products, which, with following previous wars. modifications suggested by the board and accepted by the THE INDUSTRIAL BOARD. industry, has been approved by the board. GEORGE N. PEEK, Chairman. "The objects to be secured are a revival and stabilization of business by establishing a reasonably low basis of Explaining the action taken with reference prices which would be satisfactory to the consuming to the revision of prices in the iron and steel public, and yet, so far as practicable, would yield a modindustry, the two following statements were erate and reasonable return to the investors where they made public on March 21 by the Industrial are entitled to it in the application of sound business Board, the former on behalf of the board, the principles, and at the same time would not disturb wage rates or interfere with wage agreements; and further, latter on behalf of the iron and steel industry: having determined upon prices which it is expected . MARCH 21, 1919. will not be reduced during this year, it is believed that the In giving its approval to the schedule of prices just volume of business will be promptly increased and that decided upon for the principal articles of iron and steel furnaces and mills will be operating at a largely increased the Industrial Board of the Department of Commerce, capacity, thus giving employment to a correspondingly carrying out the purpose for which it was created, believes increased number of employees. that a level has been reached below which the public "It has been necessary to ascertain and scrutinize all should not expect to buy during the current year. The the facts and figures in order to prevent any injustice, and purpose of the board is to bring about such a lower level this has been the occasion for considerable discussion and of prices as will effect stability and stimulate trade, to the some differences, but as a final result of the conferences end that business and industry can proceed and build up which have taken place during the last two days and bewith confidence and provide maximum employment. fore, the committee appointed to represent the entire In its effort to effect cooperation between the Govern- iron and steel industries joined in the report which was ment, representing the public, and capital and labor, it made to the Industrial Board. has in view a due and just regard for all of these interests "While in the opinion of some of the manufacturers and therefore, in giving its approval to these prices and the board has insisted upon some changes in the schedule others which it will consider immediately, it will endeavor submitted before approving the same, yet the iron and steel to strike a balance which, while calling sooner or later for committee are convinced that the members of the board some sacrifice or adjustments on the part of all, yet will have been governed solely with the intention of protectnot subject any of these interests to undue hardship. ing and promoting the best interests of the public, the in- The board is asking industry to cooperate in taking the vestors of capital, and the employees without discriminafirst step and voluntarily make temporary sacrifices in the tion, and that the action of the board has been wise and interest of all, and has asked the iron and steel industry just. because of its fundamental importance to be the first to "The iron and steel industry was the first called upon act, and the board is highly gratified with the spirit in by the board to meet the business situation and to lend which it has responded. its energies and assistance in bringing about readjustment It is fully understood and expected that the present and restoration of the good business conditions, and wage rates or agreements will not be interfered with, the therefore was the first called upon to make the necessary approved prices having this in view. sacrifice in profits; but those connected with, the trade Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

APRIL 1, 1919. FEDERAL RESERVE BULLETIN. 345 believe that as a result for the year as a whole they will be because the chief export, coffee, was mostly to England. compensated and that if other lines of industry show the European credits are usually 90 days; in the United States same disposition, as they undoubtedly will, we may ex- 30, 60, and 90 days, and drawings accordingly. These are pect great business progress and prosperity in the near usually sold to one of the local banks or private bankers. future. "The price list and reductions submitted and approved HOW EXCHANGE IS QUOTED. bv the Industrial Board is as follows: Exchange rates are locally quoted at so many colones to the dollar, pound sterling, mark, franc, etc.; e. g., when Reductions. the dollar is quoted at, say, 115 per cent premium, it means ! Nov. n Present New that every $100 is worth 21.5 colones, or when it is quoted l price. price. price. From From at 260 per cent premium, it means that every $100 is worth Nov. 11. present. 360 colones. When sterling is quoted at, say, 140 per cent, it is understood that every £20 is worth 240 colones, and P B i i ? ll e ir t o s: n, basic i §33.00 §30.00 j S255,.75 ! $7.25 84.25 so on. These bills are customarily domiciled at New York, 4-inch M7.50 43.50 ! 38.50 9.00 5.00 San Francisco, London, Paris, and Hamburg. 2-inch 151.00 47.00 ! 42.00 9.00 5.00 Sheet bars 151.00 47.00 42.00 9.00 5.00 All banks and bankers are kept advised by their cor- Slabs 150.00 46.00 ' 41.00 9.00 5.00 Skolp: i respondents of discount and exchange rates at New York. S U h n e i a v r e e r d sal 2 2 3 3 . . 1 2 5 5 2 3 . .0 9 0 0 i ! 2 2. . 5 6 5 5 3 "1 1 2 2 .0 .0 0 0 3 3 7 7 . . 0 0 0 0 Drafts and currency are converted into local currency Grooved 8 2.90 2.70 2.45 8 9.00 3 5.00 at the ruling rates of the day, which are regulated much by Merchant bar, base.. *2.90 2.70 I 2.35 8 11.00 3 7.00 Sheared plates 2 3.25 3.00 : 2.65 3 12.00 3 7.00 the supply and the demand. Exchange tables are pub- Structural base 8 3.00 2.80 I 2.45 Ul.OO 3 7.00 lished in the local papers. Forward rates of New York Wire rod 157.00 57.00 ! 52.00 5.00 5.00 Plain wire 2 3.25 3.25 i 3.25 3 5.00 3 5.00 discount are not quoted. Nails. 2 3.50 3.50 I 3.25 3 5.00 Black sheets, 28- 3 5.00 The margin or profit usually calculated in the purchase Bl p u o e u n an d nealed, 10- 2 5.00 4.70 4.35 8 13.00 3 7.00 of first-class commercial bills is one to two points. The pound. 24.25 3.90 I 3.55 3 7.00 New York discount rate is taken as a basis. Galvanized sheets, 3 14.00 28-pound 2 6.25 6.05 j 5.70 3 7.00 No discrimination exists in favor of bills of other coun- Tin plate, 100-pound j 3 11.00 tries. In normal times the bulk of the trade being with box ! 7.75 7.35 7.00 3 7.00 I Tubular products ; () 3 15.00 3 7.00 iEurope there is naturally more demand for European H L R i a o g i o h l p s t : s r , a b il a s s e i j ! 2 23 3 . . O 0O O 2 3 . .3 7 0 0 ; 2 3 . . 4 0 5 5 3 3 1 9 1 . . 0 0 0 0 3 3 5 5 . . 0 0 0 0 e w x h c e h n a n t g h e e t r h a a te n s f a o r r e b f i a l v ls o r o a n b le th e in U N n e i w te d Y S o t r a k t es m , a a n l y th o m u e g r h - Standard .Besse- j mcr ! 155.00 55.00 45.00 10.00 10.00 Ichants purchase New York exchange and buy in New Standard O. II..! 157.00 57.00 47.00 10.00 10.00 ! York whatever European exchange they may require. 1 Gross ton. 2 Hundredweight. 3 Net ton. 4 3* points olf card. COMMISSIONS AND STAMP CHARGES—PROTEST PRACTICES. Ore, no change Basint; points and differentials unchanged. Prices effective at once. In the import trade the commission for collecting clean items on this city is -J- per cent, documentary items the same; clean items and documentary items on various other Practice of Handling Bills of Exchange in Foreign cities, I per cent. The commission for obtaining accept- Countries.1 ance if bill is not to be left for collection is J per cent. The bill stamp charges in Costa Rica are: For clean COSTA RICA. items, 2 centavos (§0.009); for documentary items, 20 [Consul Benjamin F. Chase, San Jose.] centavos ($0,093). It is customary for these charges to Exports to the United States are financed by 30, 60, and j be paid by the drawee of the bills. Deductions for stamp 90 day bills. The local seller, at times, draws on a credit charges are never made from remittance in payment of opened by the American importer, but generally against such collections. No charge is made for stamps on checks bill of lading. This credit is ordinarily open in the United remitted in payment of collections. States on 1 per cent acceptance commission and 6 per cent Protest charges are 6.50 cokmea (S3.02). These charges interest. Bills drawn in dollars on New York always find are collected from the drawee, if payment is made after a ready sale. The currency in which the local exporters' protest. bills are drawn depends on the destination of the goods; if The charge or expense beyond the protest fees connected for Europe, generally in sterling, but even some of that with the return of dishonored items is J per cent false trade is in dollars. Before the war most was in sterling, commission. Payment of such charge or expense should be made by a deposit with the New York bankers of the 1 From Commerce Reports, No. 37, Feb. 13,1919; No. 59, Mar. 12,1919 ! house or bank returning the dishonored item. [NOTE.—This is the iirst ol1 a series to be published in the near future j Protest laws and practices are very similar to those in on the practice of handling bills of exchange in the import and export : common use. Protest must be made within two days of trade and other features. The series which follow will include reports j from Mexico, South America, Europe, Africa, and the Far East.] 'default by one notary and two witnesses or by two notaries, Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

346 FEDERAL RESERVE BULLETIN. APRIL 1,1919. between 8a. m. and 6 p. m. In counting the two days, PROCEDURE FOR SALE OR RETURN OF GOODS. holidays are excluded. Day and hour of presentation When the client desires to sell the goods the local bank must be shown. or banker attends the sale, if authorized to do so. It is customary for the maker of the draft to pay the If instructions are given to have the goods returned, collection and banking charges, and not for the importer storage or customhouse charges and reshipping charges to bear these charges, or to assume any other supplemenmust be paid after first giving the Government notice of tary payments or charges. the intention to return the goods. They must first be ACCEPTANCE OF CONSIGNMENTS. cleared, but no duty need be paid, only the other charges. If the merchandise is returned to the country of shipment Local banks do not guarantee the payment of drafts after duty has been paid a refund is obtainable, less posaccepted by any firms. sibly some small charge. The local banker giving the information does not accept the consignment of goods. Parcels may be sent PHRASEOLOGY OF DRAFTS. for delivery, with the usual charge of J per cent on city The customary phrase to be included in drafts drawn on items and | per cent on out-of-town items, upon payment Costa Rica in United States dollars (or any other foreign or acceptance of draft. currency) in order to enable a remittance of the full face } CUSTOMHOUSE PRACTICES—DRAYAGE AND STORAGE amount of such bills is, "All charges for account of CHARGES. drawee." By using this phrase all collection charges and One month is allowed for making entry of the goods at all interest is understood to be collectible from the drawee the customhouse, except matches, gasoline, kerosene, and to be remitted by the local bank. If not included in powder, and other dangerous or explosive goods, when 48 the draft as drawn the phrase may be added in writing hours are allowed. No fine is imposed but a storage thereon. charge of 60 centavos ($0.28) per 100 kilos (220.46 pounds) If a bill is drawn on Costa Rica in other than Costa per month, or fraction thereof, for five months for ordinary Rican currency, sometimes the drawee pays such bill by goods. A storage charge of 10 centavos ($0.0465) per lrilo a draft purchased from another bank here. But the holder (2.2 pounds) for each 24 hours or fraction thereof, beyond of the bill so drawn is under no obligation to accept any the 48 hours, is charged for dangerous or explosive articles other bank's draft in payment thereof. as noted. It is customary for the consignee eventually Where drafts are drawn in a foreign currency, there is to pay these charges. The goods are sold at auction if not no provision of law nor trade custom as to the rate of entered within six months from date of arrival at the exchange that shall be applied on such bills. customhouse. The Government has no regular storage If the maker of the draft has not given specific instruchouse but makes charges as above for the time the goods tions, no allowance for interest is made to acceptors for remain under its charge. retiring bills before maturity. The rate is not fixed by The bank does not arrange for storing the goods while law, but is 10 and 12 per cent here; when any allowance awaiting clearance. Drayage charges are subject to bar- is made on foreign bills the rate is usually 6 per cent. gain, rates are from 25 centavos ($0,116) to one colon GUATEMALA. ($0,465) for a single package. No insurance is available [Consul Samuel C. Reat, Guatemala City.] for goods in the customhouse in San Jose. The customer generally pays all charges imposed by delay in entering Exports to the United States are financed by attaching the goods. draft to the shipping documents. Often a portion of the payment for the goods is drawable in advance, but only INVOICES AND OTHER DOCUMENTS NEEDED. when the bank has been advised by the American im- When goods arrive in advance of the related documents porter, and then there is a charge made for the accommothey may be entered by giving a satisfactory bond to the dation. In certain cases the exporter is able to draw for Government. There are usually no expenses connected the full amount from a credit opened by the importer. with this procedure. Documents almost invariably pre- The credit is generally opened with the correspondent of cede the goods. the bank in New York or San Francisco upon terms that Consular invoices, a bill of lading, and a commercial are mutually agreed upon there. invoice are necessary for all shipments made to this coun- As all of the bills drawn in the country are in dollar extry. It is not customary to permit examination of goods change there is no possibility of a comparison with bills by the consignee without permission of the consignor. If in other exchange. No exchange tables of dollars into the bill of lading is made out " to order," it is possible for local currency are published. the consignee, by giving satisfactory bond to the Govern- The ordinary method of arranging a credit is for the imment, to obtain possession of the goods without producing porter to establish a credit with some certain bank or the bill of lading. This is also true if the bills of lading banking house in the United States, who then notifies the are made out to the order of the consignee. Bills of lading exporter's bank in Guatemala that upon presentation of should be made to the order of a bank or banker to give shipping documents of any certain article the exporter is consignor absolute control of the merchandise. to be given the privilege of drawing at such and such a. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

APEIL 1, 1919. FEDERAL RESERVE BULLETIN. 347 rate per quantity. The usance on such bills is generally and with no protest. No local bank or banking house 50 points below the rate of exchange on the day of draw- will guarantee the payment of a draft drawn against any ing. They are negotiated through the banks, banking firm in the Republic, even after it is accepted. None houses, and money brokers, who will quote the day's rate of the banks in Guatemala accept goods on consignment of exchange upon request. The bills are domiciled in or aid the importer in any way. The only service they New York, New Orleans, and San Francisco. The banks render to the American exporter for the charges they receive daily cables of the New York rate of discount and make is the holding of the documents attached to the exchange. "Forward" rates of New York discount are draft until it is paid; and the only protection they offer quoted at 6 per cent. for his goods is the holding of the documents necessary No fixed margin of profit is calculated in the purchase of to obtain the goods from the customhouse until the draft first-class commercial bills; their purchase is competitive is iully paid. Consequently the only way that the between the various banks, banking houses, and brokers. American exporter can bo sure of having his draft paid, after it is accepted, is to make the draft a sight draft and COMMISSIONS AND STAMP CHARGES. instruct the bank to hold the documents until it is paid; In the import, trade the commission charged for collect- or, if a GO or 90 day draft i3 attached, to instruct the bank ing clean or documentary items on Guatemala City varies to demand guarantee that it will be paid at maturity. Of course, with the first merchants and importers, the in different institutions from one-half to 1 per cent. This bank will willingly accept the guarantee of the firm or commission is the total cost attaching to collection of any importer, who most likely is a client and depositor. item drawn on the country, as there are no banks in other parts of the Republic, other than branches of those estab- CUSTOMHOUSE PROCEDURE—STORAGE OF GOODS. lished here in the capital. The commission for obtaining The time allowed by the customhouse for entry of goods acceptance if the bill is not left with the bank for collecis one month after the arrival of the steamer in port. As it tion is 1 per cent, but this very seldom happens. takes from 3 to 10 days for the goods to arrive at the custom- The stamp charges on both clean and documentary house in Guatemala City after the arrival of the steamer, items is 50 centavos per $1,000 (equal at present exchange the time elapsing in railroad transit is lost to the importer. to about 'JJ cents gold). This charge is paid by the After the passing of one month from the date of arrival of acceptor or consignee. No deductions are ever made for the steamer the customhouse authorities impose a fine stamps by the banks here on the amounts collected or against the goods to the amount of 8 centavos per 100 kilos on checks remitted by them in payment. (220.46 pounds) or part thereof per day; one-half of the fine is payable in gold and the other half in the currency of RULES GOVERNING PROTESTED ITEMS. the country, so that it amounts at present rate of exchange In case a draft is marked "To be protested if not paid," to about 4.9 cents gold per day. This charge is paid by the the charges for the protest are $2.50 gold, which charge consignee, should he eventually take the goods out of cusis paid by the acceptor. There are no other fees on dis- toms: but should he fail to accept the goods within the time honored items. The law of the country covering protest limit of six months the customhouse authorities then adverot items provides simply that the bank hands the draft tise the goods for sale, making announcement in a daily to a licensed attorney, who presents the item to the paper and soiling at public auction to the highest bidder person on whom it is drawn. If the party says that he for 75 per cent or more oi the local market value at the mohas not the money for payment ot the item or refuses to ment, not the invoiced value. The proceeds are kept by accept it for any reason, the attorney then draws up a the Government. The Government does not undertake to statement of the facts on stamped paper, attaches it to store goods longer than the time stated above and does not the draft, and returns it to the bank. Nothing else is have a bonded warehouse for any class of goods. done, except that the bank, for itself or on account of The banks of the country do not undertake to store goods the drawee, may bring suit and obtain judgment.. of any description upon request of the American exporter, CUSTOMS REGARDING PAYMENT OF CHARGES—GUARANTEES nor are there any arrangements possible whereby goods OF PAYMENT. may be covered by insurance other than that written in the United States. It is the custom in Guatemala for the merchant or Should the goods arrive before the related documents, it importer to pay the collection charges on all items drawn is possible for the importer, if a responsible firm or indiagainst him. However, he always objects to doing so, vidual, to obtain the goods from the customhouse after making strong protest. Whether or not the collection paying the duty and giving guaranty that the bills will be charges should be paid by the importer should be a matter presented upon their arrival. of arrangement and agreement between the American INVOICES NEEDED—INSPECTION OF GOODS BY CONSIGNEE. exporter and the Guatemalan importer; and in many cases it i? arranged in such a manner that the importer It is necessary to obtain consular invoices for all goods is relieved of these charges. All other supplementary and shipped to the Republic of Guatemala, except for those goods that are free, such as samples, etc., but it is better subsequent charges are paid by the importer willingly 111260—19 7 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

348 FEDERAL RESERVE BULLETIN. APRIL 1,1919. even in those cases to obtain an invoice on account of the ! There is very little market here for other than New York difficulty of knowing exactly what is free and what is not. | bills, and most local exporters' bills are drawn in American No other documents are necessary. jdollars. Inspection of goods in the warehouses of the customhouse ; The exporter is likely to be an importer also. The credit is allowed by the authorities when made in the presence of which he gets for his shipments is applied on bills for goods an inspector; but under no circumstances are the goods bought in the United States. For this reason bills of exallowed out of the hands of the customhouse authorities for change can hardly be said to exist. It is not customary for examination. If the goods are damaged or unsatisfactory, the American importer to open credit for the Honduras they may be refused by the consignees. exporter with whom he does business. It is not possible for the consignee to obtain possession of Local exchange rates are based on the value of local the goods in any manner except as stated above. The bills j coin in terms of the gold dollar. Foreign money is figured of lading must be produced, or bond given for their presen- at its American gold value, and then converted into local tation later or for the presentation of copies in duplicate. coin. New York quotations are only received by mail, Facilities are such that shipments should not be consigned and so have little effect on local transactions Local banks "to order." do not keep posted on daily fluctuations of exchange rates. Dollar bills, drafts, etc., are converted into local currency PROCEDURE FOR SALE OR RETURN OF GOODS SHIPPED. on the basis of local supply and demand. Exchange In case the American exporter desires to sell the goods to tables are not published in this country, and "forward" others than the consignee the banks here do not attend to rates of New York discount are not quoted. There is that business, but might turn the matter over to some practically no business done in the purchase of commercial commission house to handle; or should the American ex- bills, either American or foreign. porter through his bank instruct the bank here to return the goods to the shipper, special arrangements would have COMMISSIONS AND STAMP CHARGES—FEES ON PROTESTED to be made with the director of customs by which the ITEMS. goods would not have to be cleared through the custom- In the matter of imports to Honduras the banks charge a house, and no duties would have to be paid; but no refund commission of £ per cent for collecting clean or documenpertains on duties already paid. tary items on this city. The same charge is made for obtaining acceptance if the bill is not left for collection. PHRASEOLOGY OF DRAFTS. There are no stamp charges of any kind on either clean or In order to assure the remittance of the full amount of a documentary items. draft drawn by an American bank for goods shipped to The amount charged in case of protest is about $8 gold, this country there is no extraordinary wording used in and this is paid by the drawee. The American exporter is drawing up the draft, but sometimes one of the banking held responsible for collection and banking charges, except houses here instructs its correspondents in the United in case of difficult collections, when the importer pays. States to have the words "plus J per cent" added to insure the collection charges. This added, assures the OTHER BANK SERVICES. drawee of the full amount, without deduction for collection Local banks will not usually guarantee payment of and interest. Interest is very seldom added to a draft, drafts, and it is not advisable to consign goods to them, however, even when drawn for 60, 90, or 120 days. The because the fact becomes known and no one will then pay banks and banking houses all undertake to remit collec- what the goods are worth. tions of drafts in American gold, and the words " American Banks will accept parcels to be delivered to consignee gold " are generally written in the draft. against payment or acceptance of draft, if such parcels are No draft is ever drawn on this country in the currency shipped by mail. The charge in such instances is 1 per of Guatemala, but should one be drawn in currency other cent. Parcels sent by freight are not accepted for delivery. than American dollars, the person upon whom it is drawn CUSTOMHOUSE ENTRY AND STORAGE FEES. pays it with bank check, American gold, at the current rate of exchange, or with another draft, approved, written One month is allowed after arrival of goods for making in American gold. There being no provision of law as to customhouse entry. Storage at a per diem rate is charged the rate of exchange in such a case mentioned, it is the rate against the goods after the lapse of this period. Goods not current of the day. The banks of Guatemala do not allow taken from the customhouse after two years are sold at the acceptor any interest reduction for retirement before auction. The storage charge after the first 30 days' free maturity. storage is 2 cents per half kilo (1.1 pounds) for the next HONDURAS. month, and double this charge for each additional month [Consul Francis J. Dyer, Tegucigalpa.] or fraction thereof. It is customary for the consignee to Exports to the United States are financed through banks pay these charges, but disputes often arise. There is no by drafts at three or four months' sight with documents organized private storage business here. attached against acceptance. Goods are generally shipped Arrangements can be made for insurance while in wareto commission houses to the credit of the shipper. house, if desired. The rates range from f to 1J per cent. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

APRIL 1,1919. FEDERAL RESERVE BULLETIN. 349 The charges of both storage and insurance are borne by importer, but as the exports decrease in volume the the goods. practice decreases. Moreover, considerable difficulty is Goods never arrive here before the related documents. encountered in disposing of drafts which are not bank But in case of loss of documents they can be replaced. drafts. This has had a tendency to discourage the practice of making drafts on importers rather than on banks. DOCUMENTS NEEDED—EXAMINATION OP GOODS—HOW TO Credit is ordinarily opened in New York, and also in PHRASE BILLS OF LADING. San Francisco. The terms vary to such a degree that Consular invoice, bill of lading, and original invoice nothing can be definitely stated. showing the f. o. b. value of the goods in an American port Before credit is granted an intimate knowledge of the are needed for all shipments made to Honduras except financial standing of the client is obtained; then satisthose coming by parcel post, in which case consular invoice factory arrangements are made. is unnecessary. All packages must be opened in the customhouse before EXCHANGE RATES AND QUOTATIONS. delivery to the drawee, hence there is no difficulty about The common usance of bills of exchange is 30 days; in the drawee's examining the goods. j some instances 60 and 90 days. All bills are negotiated If bills of lading are made to the order of the consignee |directly, as there are no brokers. Exchange rates are he may obtain the goods without producing the bills of | quoted at so many cordobas (1 cordoba=$l) for each lading, but this can not be done if they are made "to pound sterling, or $1.00, etc. These bills are customarily order." To give the exporter absolute control of the goods domiciled in New York, San Francisco, London, and Paris. the bills of lading should be made out "to order," indorsed Cable advices from New York to the local banks keep in blank, and kept in bank with proper instructions. them posted on the daily fluctuations of exchange rates It is not the general policy here to undertake the sale of in the principal financial centers of the world. Possibly the goods, but it can be done, without making any guaran- upon this advice, although no quotations on New York tees. Goods will be returned if all expenses are met, but are current, dollar bills and drafts offered to local banks the excessive freights render this course inadvisable. are converted into local currency. Exchange tables are Also, the goods must be cleared through the customhouse not necessary, for American money is legal tender, and the and duty paid, and no duties already paid will be refunded. cordoba is maintained at par with the American dollar. Local banks receive quotations of discount rates regu- PHRASEOLOGY OP DRAFTS. larly from New York, but "forward" rates of New York To make possible a remittance of the full face value of discount are not quoted. drafts, they should be made '' Payable at the bank selling- j The margin of profit usually calculated in the purchase rate for sight drafts, in New York, plus bank collection j of first-class commercial bills is dependent upon circumcharges." It is not customary to have remittance cover j stances. The base for such calculations is the local rate. collection charges or interest. If this is desired, however, iThere is no discrimination in favor of bills of other an explanation of the proposed charge should be added to |countries. the above clause. j If a bill is drawn on a Honduras bank in other than the j COMMISSIONS CHARGED FOR COLLECTIONS--NO STAMP local currency it is customary for the drawee to make pay- CHARGES. ment by draft purchased from another Honduras bank. In the import trade, the commission for collecting clean But neither law nor custom provides any rate of exchange bills of exchange by the Commercial Bank of Spanish when drafts are drawn in a foreign currency. America (Ltd.), and the National Bank of Nicaragua (Inc.) From 4 to 6 per cent interest is generally allowed accept- is 1 per cent in the cities of Managua, Leon, and Granada, ors for retiring drafts before maturity. But this is not with a minimum charge of 25 cents; elsewhere in Nicaragua fixed by law. In addition to the fees mentioned above, a the commission is 1} per cent, and the minimum, 50 cents. false commission is allowed in case of protests. Payment The rates of the Anglo-Central American Commercial Bank of such charges is made to the New York correspondent of (Ltd.) are a little higher. the Honduras bank or is deducted from the next remit- When collections are returned unpaid or unaccepted the tance. rates are one-half of the above-mentioned rates with the NICARAGUA, minimum as stated. Such rates include postage charges. [Consul Andrew J. McConnico, Corinto.] Protest for nonacceptance or nonpayment is not under- Exports to the United States are financed either by taken. The commission for obtaining acceptance, if the advances made against the shipments by the local banks bill is not to be left with the local bank for collection, is of Nicaragua or by means of credits issued to local shippers one-half of the tariff charges. by various commission and banking houses in the United There are no bill stamps or charges for clean and docu- States. mentary items drawn on this country. Nor is there a During the season of heaviest exports local sellers, in a charge made for stamps on checks remitted in payment of large measure, draw under a credit opened by an American foreign collections. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

350 FEDERAL RESERVE BULLETIN. APRIL 1,1919. PROTEST OF BILLS EXPENSIVE. consignee presents all necessary documents and pays all charges accruing before the time of sale at public auction, Protest of bills of exchange and drafts in Nicaragua is he may take delivery of the goods. very rare. Generally it is expensive, depending upon the The expenses and charges incident to storage by the ^amount involved, and little is to be gained by undertaking customhouse are as follows: For each 100 kilos or fraction such a measure. Banks recommend it only in rare cases. thereof, \ cent per day for the first 30 days; for the second In the event of a bill being paid after protest it is doubtful month, 1 cent per day; for the third and fourth months, whether the charges may be collected from the drawee. 1J cents per day; and for the fifth and sixth months, 2J Protest must be made by public document. Protest for cents per day for each 100 kilos or fraction thereof. The nonacceptance dispenses with protest for nonpayment consignee is compelled to pay such charges; otherwise the except in a few special cases. Most of the bills of exchange goods will be sold at public auction by the customhouse sent to Nicaragua for collection bear the following printed at the expiration of six months in order to meet the charges or written instruction: "If unpaid, do not protest." and expenses. BEST METHODS OF RECOVERING COLLECTION CHARGES. All goods are stored in the customs warehouse till the duties are paid and entry made. In case goods are stored Generally there is difficulty and annoyance when bills in private warehouses after entry is made, the premium of exchange are marked "with all collection and banking varies from \\ per cent to 3 per cent. The insurance and charges.'' Bankers of Nicaragua strongly recommend that storage charges in such cases are agreed upon by the these items be included by the shipper in his invoice, and interested parties. draft upon the importer here be made out for an amount corresponding to the invoice. WHARFAGE AND INSURANCE RATES—PROCEDURE IF DOCU- Whether the importer pays the collection and banking MENTS ARE DELAYED. charges on bills drawn on him is all a matter of arrange- Goods imported at Corinto are assessed with wharfage ment. It is difficult, if not impossible, to cause the im- charges at $1.60 per ton. This includes dray age. Most of porter to assume any supplementary charges for which the imported articles are insured in the countries from arrangements have not been made. which they are exported. This insurance usually covers the articles while remaining in the customs warehouses, PAYMENTS RARELY GUARANTEED—DELIVERY THROUGH or till they reach their destination at interior points. The BANKS DISCOURAGED. rates of insurance depend upon the class of goods. Ordinarily, local banks do not assume responsibility or In the event of the goods arriving before related docuguarantee payment of drafts accepted by approved firms. ments, if the manifest shows to whom the goods are con- Exceptions are made in a few cases, in which the importer signed, the consignee is allowed under sufficient bond to has arrangements with the banks. For the convenience file entry and take delivery of the goods,, after making a of clients local banks have what they term "Importa- written promise on the face of the entry to produce the bill tion departments,'' but consignments are not recommended of lading and consular invoice, if the latter be required, until after consultation as to whether the class of goods is within a specified time. The time limit for bills of lading suitable for this country. The sales commission is 2\ per is six months from any part of the world; for consular incent, del credere, subject to arrangement. voices, three months from any part of North or South Local banks do not encourage the sending to them of America and five months from other parts of the world. parcels to be delivered to consignees. It entails too much The time to produce these documents may, under unusual work, and in such cases the banks have to advance funds circumstances, be extended by the collector general of for customs purposes, etc. The amounts involved are customs of Nicaragua. generally so small that they do not care to undertake busi- In the absence of documents,, if the manifest does not ness of that class. Banks recommend that parcels be sent show to whom the goods are consigned, the agents of the against "cash with order." The importer then has to pay vessel on which the goods are imported may have them the duties and take delivery. placed in bond pending receipt of documents; but such agents can not take delivery of the goods. Or the agents CUSTOMHOUSE TINES AND STORAGE CHARGES. of the vessel may make written request to the collector of The time allowed after arrival by the customhouse for customs that the person claiming the goods be allowed to making the entry of goods is 15 days. If the entry is not place them in bond, which request is granted if the person made within the limited time a fine is imposed equal to j in question has the necessary bonds on file. 25 per cent of the duty, if the goods are dutiable; if not If the bill of lading is not eventually produced the condutiable, the fine imposed is equivalent to 25 per cent of signee is required to pay a fine equal to the value of the the value of the goods. goods. If the consular invoice, when such is required, is The consignee is compelled to pay the fine; otherwise not produced a fine of $1 is imposed in addition to a fine delivery will not be made to him. Usually the goods are equivalent to 50 per cent of the duties, if the goods are held for six months by the customhouse, after which, under dutiable. If the goods are not dutiable, then the fine is the law, they may be sold at public auction. But if the $1 in addition to 50 per cent of the value of the goods. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

APEIL 1, 1919. FEDERAL RESERVE BULLETIN. 351 DOCUMENTS EEQUIRED—PARTIAL EXAMINATION OF GOODS currency at collecting bank's rate of exchange for sight PERMITTED. drafts on New York." To remit the face amount of the bill plus collection A consular invoice is required for goods regularly imcharges and interest the wording should be: "Payable, ported or sent by parcel post if they are valued at $50 or together with collection charges and interest at the rate over. In addition to bills of lading and consular invoices, f p annum from to date of payment, in certificates of origin are required in connection with any o er currency at collecting bank's rate of exchange for sight shipments upon which rebates are allowed. drafts on New York." Examination of imported goods by the drawee is per- Local banks undertake to remit proceeds of bills of mitted in a limited way. If he has the necessary docuexchange in United States dollars without loss of exchange ments, the customs authorities, being satisfied that he is if the bills include the following clause: "Payable in the owner of the goods, will permit him to examine at least currency at collecting bank's rate of exchange for sight one package. drafts on New York." At times, but the practice is not It is impossible for the consignee to obtain possession of general, local banks extend courtesies to their customers goods without bills of lading, whether the bills of lading by way of allowing them to pay a bill drawn upon them are made out "to order," or to his order. In order that in other than local currency by purchasing a draft from the shipper may have absolute control of the goods the another bank in the country. bill of lading should be made out "to order" with the No difficulty would arise if clauses such as those recomnecessary instructions to agents or banks in this country. mended above be used, substituting, of course,"London," PROVISIONS FOR SALE OR RETURN OF GOODS UNDELIVERED. "Paris," etc., for "New York," as the individual case requires. In the event of the sale of goods at the instance of clients Exporters in the United States and elsewhere occaof American banks, agents of local banks no doubt would sionally instruct local bankers to allow interest on bills attend such sales, if so instructed. It all depends upon of exchange, if paid before maturity, the rate in such arrangements entered upon by the banks concerned. cases being G per cent per annum. This rate is not, In case instructions are received by a local agent to re- however, fixed by law. turn the goods, the importer must notify the customhouse authorities that he will not receive the goods. The ex- FEES FOR PROTESTS AND RETURN OF DISHONORED ITEMS. porter in the United States usually has an agent, and ' When dishonored items are returned to American through that agent the goods may be returned to the port banks one-half of the usual tariff rates for collections of shipment. The agent must, however, turn the bill of are charged by the local banks. If the additional exlading over to the customhouse before he is allowed to pense of protesting a bill of exchange is incurred by a reship the goods. local bank, such expenses plus one-half the usual tariff Such returned goods have to be cleared through the charges are exacted by the local banks. The manner of customhouse as follows: obtaining such charges is all a matter of arrangement The goods are placed in bond by the filing of a bond between the American and Nicaraguan banks. entry. If necessary, they may immediately thereafter be DENMARK. taken out of bond and placed on board ship by the filing of another bond or entry known as an Entry of Reem- [Consul General E. D. Winslow, Copenhagen.] , barque. No duty is required in such a case, but if the Practically all foreign and domestic business is done by duty haa been paid and it is afterwards decided to return acceptances. These documents are drafts drawn by the the goods to the United States it is not possible to obtain seller of goods on the purchaser, who agrees to pay them a refund of the duty. on a given date or arranges to have a bank or firm, by accepting the draft, contract to make the payments for him. PHRASEOLOGY OF DRAFTS AND BILLS OF EXCHANGE. Bearing on their face the evidence that they are based upon Nicaraguan banks recommend that the following phrase actual commercial transactions or attesting this fact be included in drafts drawn on Nicaragua in United through bills of lading attached, they become prime mer- States dollars, or any other foreign currency, in order to cantile papers, and an American bank that had an office enable them to remit to the shipper the face amount of here might be able to do some business along these lines such bills without any deduction whatever: "Payable in and issue bankers' acceptance to buyers of American currency at collecting bank's rate of exchange for sight goods. I am informed that this method of doing business drafts on New York." The face amount of the draft is is a new departure for American banks. then remitted, the only reduction being the commission GOODS SHIPPED UNDER DRAFT ON ACCEPTANCE TERMS. for collecting the draft. For a local bank to be enabled to remit the face amount The open-credit method of doing business prevailing in of a bill plus the collection charges this phrase is recom- the United States, whereby goods are shipped and billed mended: "Payable, together with collection charges, in with discounts for cash or net at 30 or 60 days, is not in Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

352 FEDERAL RESERVE BULLETIN. APRIL 1, 1919. favor with experienced exporters. Manufacturers familiar ENGLAND. with foreign fields and possessed of good selling connections [Consul General Robert P. Skinner, London.] abroad usually grant time to their overseas customers by shipping goods under draft on acceptance terms. The Exports to the United States are most frequently customer gets the controlling documents upon accepting financed by the establishment of a banker's credit by the the draft and thereafter secures the shipment itself. The importer, against which the exporter draws a bill of eximportant feature of such an accepted draft lies in the fact change. Very often remittances are made by check, and that it forms a definite acknowledgment of indebtedness also frequently there are open credits with periodical recognized as such by law. settlements. The credits are almost invariably opened In Denmark acceptances are far simpler to collect than in London, against which the exporter draws on terms open accounts. With an accepted draft in evidence it be- "cash against documents," these documents being the comes unnecessary to prove indebtedness item by item in bill of lading, the consular invoice, and perhaps other case of litigation. The acceptance carries a definite ma- special papers. turity date. It virtually becomes the acceptor's promise The market for sterling bills payable in London is freer to pay at a definite time. Ordinarily, to neglect payment than that for dollar bills, hence local exporters naturally of an accepted draft is to bankrupt the credit standing of draw chiefly in terms of sterling. the foreign firm involved, according to the standards of The American importer ordinarily deals with his business practice prevailing. The matter is so serious that American banker who, in turn, arranges with his London the average foreign firm will go to extremes to avoid dis- correspondent to pay the exporter against the presentahonor of accepted drafts. tion of the bill drawn on the American firm, accompanied by the usual documents. Most bills of American im- ADVANTAGES OF THIS METHOD TO THE SELLER. porters are drawn at 60 days after sight. The negotiation of bills of exchange in London, except In open credit, trading payments may be neglected or as provided for in special contracts, is accomplished deferred, a condition encouraged by the indefinite time through brokers. Exchange rates are quoted in London element of open accounts. Legal recourse in such event in dollars per pound sterling. All financial transactions calls for submission of definite proof of indebtedness and in the United Kingdom naturally center at London. involves troubles multiplied by difference in legal procedure, language, and the distance between seller and the DAILY QUOTATIONS OF NEW YORK EXCHANGE. defendant buyer. An unpaid acceptance, on the other hand, means that protest can be entered forthwith and New York rates of exchange and discount are quoted debtors called to account without further difficulty. daily in all the newspapers of any standing, and are made The safety and consequent popularity of draft for public in this country during practically every business acceptance terms of dealing with foreign customers are in hour of the day. Local banks receive direct quotations three factors: The definite maturity date of the obliga- from many exchange centers and are provided with tape tion, the ease of discounting good acceptance paper, and machines. In fact, the system is about as it is in New the simplicity of legal recourse if such ever becomes neces- York. The New York discount rate is always taken as a sary. The indefinite terms of settlement in open account basis when purchasing the bill in the United States. No trading force the seller to carry his customers' credit, discrimination exists against American bills of exchange. thereby restricting the seller's working capital and his COLLECTION CHARGES AND STAMP DUTIES. own line of credit. The acceptance system means that definite credit can be extended abroad and such paper Consul Ingram, of Bradford, states, on the authority of discounted at a lower rate than is granted any other com- the Bradford Bankers' Clearing House, that there is no mercial paper. In view of the fact that foreign customers agreement in Bradford upon a tariff for collecting clean invariably pay costs of discounting to secure the neces- and documentary items, the circumstances governing the sary credit, acceptances are the favored instruments of charge in each particular case. The commission for clean export dealings from the customer's viewpoint. collections is usually lower than that for documentary collections, the charges probably ranging from 6d. per cent ACCEPTANCE DRAFTS ISSUED ONLY ON ACTUAL TRANS- to 2s. 6d. per cent, according to the labor and other details ACTIONS. involved. It is equally impossible to give the cost of For years the acceptance system has prevailed in Den- collecting clean and documentary items in various cities, mark, both for domestic and overseas trade financing. this being governed by complex arrangements which exist The characteristic of such acceptances has been that they between the banks and their agents at various centers, have been issued for trade purposes, based on actual com- and also affected by the terms of the account with the mercial transactions. This in contrast to the promissory persons for whom the collections are made. However, note system better known in America, under which notes the usual charge for collecting clean items would be Is. may be issued as accommodation paper, regardless of ($0.24) per bill unless a yearly charge for services rendered whether based on actual business transactions. had previously been arranged. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

APRIL 1, 1910. FEDERAL RESERVE BULLETIN. 353 No distinction is made in the stamp duty on clean and City & Midland Bank (Ltd.) makes no charge for these documentary items. On bills payable on demand or at services, but the Bank of Liverpool (Ltd.) states that the sight or presentation, or at a period not exceeding three charge is 2s. per cent ($0,486 per $486.65) for isolated transdays .after date or sight, the duty is Id. This duty also actions. When the transactions are for substantial prevails on any other bill or note drawn for an amount not amounts and the aggregate turnover is considerable the in excess of £5. When the amount exceeds £5 but does charge would not exceed half this rate. not exceed £10, the charge is 2d, and 3d. on amounts over £10 but not exceeding £25. For bills drawn for CUSTOMHOUSE AND PORT REGULATIONS. higher amounts the additional charge is 3d. for each £25 The customs law of England requires that the entry of or fraction thereof. By the finance act of 1899 the duty goods must be made within 21 days after the arrival of the on a bill of exchange drawn and expressed to be payable ship, but the regulations of the port authority at Liverpool out of the United Kingdom, when actually paid or indorsed require goods to be removed from the quay in 72 hours. or in any manner negotiated in the United Kingdom, Otherwise, penalty rent is incurred amounting to 5s. shall, when the amount for which the bill is drawn exceeds ($1.21) per hour for the first 24 hours and 10s. ($2.43) per £50, be reduced to 6d. for each £100 or fraction thereof. hour thereafter. Penalty rent is often reduced by the It is not the custom for the drawee to pay these charges dock board, however, to special rent and fixed according directly, but it is possible that an adjustment as to bill to the circumstances of the case. These penalties are not stamps may be made in the trading account of the persons paid by the consignee unless due to his own negligence, drawing and accepting the bills. Deductions for stamp but are charged by him aganist the goods when he renders charges are made by local banks from remittances in pay- his account to the consignor. ment of collections. There is no charge made for stamps If the goods are not claimed, the shipowner passes the on checks remitted in payment of collections. necessary customs entries and causes the goods to be stored, and all expenses thus incurred are claimed before RULES REGARDING PROTEST. delivery is obtained. In case of protest the amount of charges is 7s. 6d. ($1.82), plus mileage. In the event of the item being paid after BANKS WILL ARRANGE STORAGE AND INSURANCE. protest, the charges are collected from the drawee. When requested to do so by American banking corre- "With respect to the protest of items, foreign bills which spondents, the banks in England will arrange for the storage have not been accepted and/or paid should be noted on of goods and otherwise take steps to protect the American the day of dishonor—cost, Is. 6d. (§0.363) London. 2s. 6d. banking house against loss to its clients through the failure ($0,606) Bradford. Subsequently protest can be exor neglect of the consignee to take up the bill of lading. tended, and it should accompany the bill if returned Rates for draying and storage in such cases vary with the abroad. If the bill remains in town it is not necessary to goods. extend protest at once, as this may be done late if required. Whenever the bank attends to storage it will ordinarily The collection and banking charges on bills drawn upon attend also to fire insurance, but otherwise this is left to merchants should be borne by the person for whom the the consignee. The premium in such instances is entered item is collected. Collection and banking charges may, as a charge against the goods. The premium varies greatly, as in the case of stamp duties, be dealt with in the account according to the kind of policy—floating or specific—the between the drawer and drawee of the bill. character of the goods, and the location of the warehouse. Banks in Bradford only guarantee payment when the The Liverpool & London & Globe Insurance Co. (Ltd.), drafts are drawn under credit opened by local banks. 1 Dale Street, Liverpool, publish in card or pamphlet form There is no set charge for opening credits, and they vary the complete schedule of rates for various ports. It is cusprobably from one-fourth to one-half per cent, and in tomary for the consignee to pay the insurance charges and some special cases they are as little as one-eighth per cent. to recoup himself out of the proceeds of sale of the goods. BANKS ACCEPT SHIPPING DOCUMENTS AGAINST PAYMENT In the event of the goods arriving in advance of the BY CONSIGNEE. related documents, they may be obtained from the shipping company against an indemnity and letter of under- The facts stated in the succeeding paragraphs embody taking which is signed jointly by the consignee and his procedure pertaining at Liverpool, but except when otherown banker. Liverpool banks make no charge for this wise stated they hold good, in the main, for all English service, but some London banks charge one-sixteenth ports. This information was furnished by Consul Horace per cent. Lee Washington. DOCUMENTS NEEDED. Banks do not act as the consignee of goods shipped, but parcels may be sent to them by banking correspondents There is no statutory requirements specifying what docuin America. In this case the shipping documents are ments are needed in shipments to England. Commercial sent to the bank to be delivered to a specified consignee practice requires in addition to the bill or bills of lading against payment of an amount indicated. The London a marine insurance policy or certificate. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

354 FEDERAL RESERVE BULLETIN. AntiL 1, 1010. It is not usual except under extraordinary circumstances Banking institutions in Paris doing a fairly large Ameriand for satisfactory reasons to permit examination of goods can business naturally keep themselves fully informed as without specific instructions to that effect from the con- to New York discount rates. The exchange rates are signor. quoted regularly and published daily, and local banks keep themselves posted by cable on fluctuations of ex- HOW BILLS OF LADING SHOULD BE MADE OUT. change throughout the world. The consignee can not obtain the goods without produc- As regards margin of profit, there is no fixed rule, and ing the bills of lading, except by a banker's indemnity, there are practically no bills on the member banks of whether the bills are made out "to order" or to the order the Federal Reserve System in the market, although the of the consignee. To give the exporter absolute control rediscount rate of the Federal reserve bank unquestionof the goods the bills of lading should be made out "to ably would be a ruling factor in determining the rate on order," and then indorsed in blank by the party in whose such bills. favor they are made out. In the past all the bills on other countries have been drawn on London because of the negotiability and stability ARRANGEMENTS FOR SALE OR RETURN OF GOODS. of the pound sterling. But the dollar market has now The information which follows was furnished by Consul assumed such importance that with the full normal re- Calvin M. Hitch, of Nottingham. sumption of international business bills drawn in dollars In case the client of the American bank desires to sell will find a good market. goods shipped, it is exceptional for banks here to attend COMMISSIONS FOR COLLECTIONS—BILL STAMP CHARGES. to such sale. If requested to do so they would employ a The commission for collecting documentary items on broker. If requested to have the goods returned they this city never exceeds one-half mill; clean items colwould hand the documents to a shipping company with lected free. For collecting clean items on various other proper instructions. Inward freight and charges, and cities: If large centers, free, with one to five days' interest possibly return freight and insurance, would have to be collected; documentary items, up to 1 mill on big centers, paid before the shipping company would act. The goods and from one-half mill to 2 per cent on long banking would not need to be cleared through the customhouse places. No commission is usually charged for obtaining nor duty paid; and refund could be obtained on duty acceptance of bills not left with the bank for collection. already paid. The bill stamp charges for clean and documentary PHRASEOLOGY OF DRAFTS. items drawn on this country are one-half mill. It is To enable the British bank to remit the face amount customary to charge this to the drawer of the bill, the of the bill the draft should include the phrase, " Payable charge being debited to the account of the institution for at the selling rate for demand drafts." This phrase would which the collection is made. also cover any collection or interest charges, since these The charge in case of protest is five-eighths per cent, and should be included in the amount of the bill. generally when the item is paid after protest this is col- If a bill is drawn on this country in a foreign currency lected from the drawee. the drawee sometimes pays with a draft purchased from As a rule merchants here will not pay collection and another bank in this country; but this is not an estab- banking charges on bills drawn against them nor assume lished custom. any other supplementary charges. Any such arrangement Acceptors retiring drafts before maturity are, by com- must be the result of special agreement between buyer and mercial custom, allowed a rate of interest one-half per cent seller. above the ruling deposit rate of interest fixed by the London joint-stock banks; that is, if the drafts are drawn HOW CONSIGNMENTS AND PARCELS ARE HANDLED—DOCKwith documents against maturity. The interest for retir- ING, WAREHOUSE, AND INSURANCE FEES. ing clean items is a matter of arrangement between the Local banks will indorse drafts accepted by approved acceptor and the collecting bank. firms, taking a commission. In general, banks do not Any charges connected with the return of dishonored accept consignments nor handle parcels to be delivered items, over the protest fees, are a matter of arrangement, to consignee against payment. Such transactions could and would be debited in account. doubtless be handled through transportation companies. Clearance of goods may be made as soon as the captain FRANCE. has entered his ship and the goods are landed. There is Consul General Alexander M. Thackara, Paris.] no maximum time limit in which to make entry. The Exports to the United States are financed by credits only expenses are watching, dock, and warehousing dues. opened through the Paris correspondent of the American When goods are not promptly cleared through the customs banking institution. The drafts or the documents are they are sent to the Government bonded warehouse, and likely to be drawn "to order" and indorsed in blank, all costs for cartage, warehousing, and insurance are for or simply drawn to the order of the financing institution. account of goods, the consignee eventually paying these They may be at sight or at 30 or 60 days' sight. charges. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

APRIL 1,1919. FEDERAL RESERVE BULLETIN. 355 After goods have been cleared through customs a trans- There is no legal provision governing the rate portation company will arrange storage, if desired. The of exchange on drafts drawn in foreign currency. Nor rates are not fixed, even among the different companies is there a rate fixed either by law or custom governing operating in the same town, and no schedule of charges the interest allowed to acceptors for retiring drafts before can be given. maturity. Cedents should be consulted. In Government warehouses the insurance is imposed In addition to the protest fees connected with the and covered by a Government insurance contractor, the return of dishonored items, a commission of one-half mill, value being estimated by the warehouse people. But if plus 6 francs ($1.16) per protest is made. This is usually the consignee orders goods to the Government warehouse, debited in account. he may also indicate the correct value for insurance. The PORTUGAL. charge is usually 50 centimes ($0.0865) per 1,000 francs [Consul Genera] W. L. Lowrie, Lisbon.] ($193) per month. Exports to the United States are financed through DOCUMENTS NEEDED—HOW TO MAKE OUT BILLS OF LADING. banking credits or commercial drafts, with bill of lading attached. Credit is opened in Lisbon or London, less In the event of the goods arriving before the related frequently in New York, against bill of lading and insurdocuments, they may be obtained by presenting a banker's ance policies. The market for bills drawn in dollars on guaranty. The cost of this does not exceed one-fourth New York is comparatively small. Most local exporters' per cent. bills are drawn in pounds sterling or francs. The buyer Consular invoices are not required on shipments to opens a credit in a local or French or English bank, send- France. ing a letter of credit to the seller, or having him advised Consignee may examine the goods in the customs only by the local bank that the credit is open for the amount when instructions have been given by the shipper to that of the invoice of the goods purchased for payment against effect. shipping documents. Bills are negotiated through the The consignee can not obtain possession of the goods bank where credit has been established. Exchange rates without the bill of lading if it is made out "to order" or are quoted through the banks. Bills are customarily to the order of the consignee unless he produces a banker's domiciled in Lisbon or Oporto, London or Paris. guaranty. To obtain absolute control, bills should be made out or indorsed to the order of the collecting bank, DAILY QUOTATIONS OF NEW YORK RATES. although, generally speaking, bills come through made out "to order7' and indorsed in blank. New York rates of discount and exchange are quoted each day by the banks. They keep themselves posted by PROCEDURE FOR RETURN OF GOODS. telegrams on fluctuations in the principal financial centers of the world. Dollar exchange tables are not published; It is unusual for banks to attend the sale of goods. If sterling and francs are. Regular quotations of discount goods are to be returned to shipper, the procedure is quite rates from New York or other American banks would be similar to that in the United States for a like transaction. of no use here. The present rate of the Bank of Portugal A regular customs entry is necessary, and the goods are is 5J per cent; market discount, 5 to 7 per cent. "Forreforwarded in bond to port. Goods in bond need not ward" rates of New York are not quoted. Margin of be cleared through the customhouse, hence there is no profit on the purchase of first-class commercial bills is duty. But if duty has already been paid, there is no recalculated on 5 to 10 points (about one-fourth and one-half fund, unless duty was paid on drawback or on "Consigper cent). Interest is figured at 5 to 7 per cent, if New nation de droits" (deposit of customs duty), which is York rates are not above that. Bills on London are those only allowed on certain classes of goods. which sell most readily and all parities are calculated PHRASEOLOGY OF DRAFTS. through the London rates of exchange. The customary phrase to be included in drafts to enable COLLECTION AND BILL CHARGES—PROTEST FEES. a remittance of the full face amount of the bill without any deduction is: "Payable for this amount plus all The commission charged by local banks for collecting charges." This phrase must be embodied in the bill. clean items on this city is one-tenth per cent; document- If the remittance is also to include collection charges, ary items, one-tenth to one-eighth per cent. The same these charges are usually indicated in the amount of the commissions prevail for collecting items on Oporto and bill, and the phrase is: "Payable for the face amount, Lisbon, but items on other cities are charged one-fourth plus § , collection charges, as indicated above, and to one-half per cent extra. No commission is charged for any other bank charges." obtaining acceptance of a bill not to be left for collection. If interest is also to be paid, add to the above phrase: The bill-stamp charges for clean and documentary items " And interest at the rate of from to ." drawn on this country amount to 10 centavos ($0,108) per On bills drawn on France in other than French currency 100 escudos ($108.05), or one-tenth per cent. It is custhe drawee is at liberty to purchase his cover where he tomary for the drawee to pay these charges, together with Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

356 FEDERAL RESERVE BULLETIN". APRIL 1,1919. postage costs, and they are deducted from the local bank's goods without producing the bills of lading. If they are remittance to the American bank in payment of such col- made out to the order of the consignee their production is lections. No charge is made for stamps on checks remitted not necessary for him to obtain the goods. To give the in payment of collections. shipper absolute control of merchandise, the bills of lading The amount of the charges in case of protest is 1.30 should be made out to order and indorsed either to the escudos ($1,304). When the item is paid after protest the banker or in blank. charges are collected from the drawee. The law provides Local banks will attend to the sale of goods if desired that protest must be made within two banking days after through an agent or a recommended merchant. If asked due date. to return goods the local bank will give reshipping in- It is not customary for the Portuguese importer to pay struction to an official customhouse clerk. If entry has any collection, banking, or other supplementary charges— not yet been made duty need not be paid, and there is no nothing but the face amount of the bill. reexport duty. But if goods have been entered refund is improbable. HOW PARCELS SHOULD BE SENT—CUSTOMHOUSE ENTRY. HOW DRAFTS SHOULD BE DRAWN. While it is not the rule for local banks to guarantee pay- To enable local bank to remit the face amount of the bill ment of drafts accepted by approved firms this is somewithout any deductions whatever, the draft should read: times done, the terms being 1 to 2 per cent. Banks will " Payable at the rate of exchange of the day of payment." accept the consignment of parcels, but the conditions Collection, stamp, and interest charges must be paid by would have to be adjusted between the parties concerned. the indorser, since the drawee can with difficulty be made They will also accept parcels for delivery, the shipper to assume them. being responsible for the payment of customhouse duties, Bills drawn on Portugal in other than local currency are which must be settled before parcels are delivered. payable at the rate of exchange ruling on the day previous Two years are allowed after the arrival of goods in which to maturity, and it is not customary to pay them by drafts to make entry at the customhouse. No fines are assessed drawn on other banks in this country. for exceeding this limit, but whenever the storage fees The customary but not legally fixed rate of interest albecome sufficient to exceed the estimated value of the lowed acceptors for retiring drafts before maturity is 5 to 6 goods they are sold by the Government at public auction. per cent. Similar disposal of the goods is made if at the expiration of The small additional charges of commission and postage the two years they remain unentered. over the protest fees for the return of dishonored items STORAGE AND INSURANCE RATES. are put to account or paid over to the New York correspondents of the local banking house. The storage rate on bags and bales is 30 centavos (10.324) per ton for the first month and 27 centavos (§0.29) per ton SPAIN. for each succeeding month. The rate on cases is 27 cen- [Consul General Carl Barley Hurst, Barcelona.] tavos per ton for the first, and 22 centavos ($0,237) for each Spanish exports to the United States are usually financed succeeding month. The consignee eventually pays these through London or Paris banks, and the local seller charges. If removal of goods is desired, arrangements for also draws under a credit opened by the American imstoring can be made with a customhouse broker, the rates porter. Where a local bank is called upon to cover balvarying according to circumstances. Banks will arrange ances in New York it purchases exchange on London and for insurance while in warehouse, the premium varying sells this exchange in the United States. Drafts on New with the character of the goods and being paid eventually York are sent to the United States and exchanged for gold, by the consignee. which is then brought back to Spain. If goods arrive before the related documents, they are New York rates of discount and exchange are well stored ex officio by the customhouse, the expense varying known to parties interested, and local banks are advised with the merchandise. of daily fluctuations by telegraph. Local banks get regular quotations of discount rates from DOCUMENTS REQUIRED FOR SHIPMENTS—HOW BILLS OP New York and other American banks, and "forward" LADING SHOULD BE MADE OUT. rates of New York discount are quoted here. All pur- Consular invoice must be obtained for all shipments to chases of first-class commercial bills are based on the Lon- Portugal. No other documents are required by law, but don and Paris parities, and no discrimination exists in favor custom requires bill of lading, invoice, and insurance of bills on other countries. policies in addition to the consular invoice. Examination of goods by drawee is allowed without au- BANK COMMISSIONS AND STAMP CHARGES. thorization from the exporter by abusive custom rather The commission for collecting documentary items in this than by legal right. city is about one-half per mil, and the total cost for collect- If bills of lading are made out " to order," the consignee ing clean items in various cities differs but slightly from may, under proper guaranty, obtain possession of the that of Barcelona. The total cost of collecting documen- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

APEIL 1,1919. FEDERAL RESERVE BULLETIN. 357 tary items in various cities depends upon the instructions Foreign Branches. to be carried out. One-half the collecting commission is There is given below a list of foreign branches charged for obtaining acceptance of bill not left with the of national banks and banks doing business banker for collection. under agreement with the Federal Reserve Various arrangements are made by Spanish bankers with Board, which were open for business on April 1, the drawee as to the payment of stamp charges, sometimes 1919. the stamp charge being deducted from the remittance made in payment for collection. A charge of 10 centimos ($0,019) NATIONAL BANKS. is made for stamps on checks remitted in payment of col- 1. National City Bank, 55 Wall Street, New York City: lections. When an item is paid after protest the charges Buenos Xires, Argentina. Bahia, Brazil. are collected from the drawee if possible. The drawer Rio de Janeiro, Brazil. usually bears the banking charges, but such arrangements Santos, Brazil. are matters for adjustment between the buyer and seller. Sao Paulo, Brazil. Local banks do not generally guarantee the payment of Santiago, Chile. Valparaiso, Chile. drafts accepted by approved firms. Banks accept the Cardenas, Cuba. consignment of goods on various conditions. Parcels to be Cienfuegos, Cuba. delivered to consignee against payment or acceptance of Havana, Cuba. drafts should be handled by a customhouse broker, who Matanzas, Cuba. Sagua la Grande, Cuba. would make entry of the goods within the required time Santiago, Cuba. limit. Genoa, Italy. San Juan, Porto Rico. STORAGE CHARGES—CONSULAR INVOICE NEEDED. Montevideo, Uruguay. Caracas, Venezuela. The usual insurance premium for the storage of goods in Vladivostok, Russia. warehouses is reasonable and depends on the nature of the Temporarily closed— goods, arrangements as to the payment of such charges Moscow, Russia. Petrograd, Russia. being made between the consignor and consignee. Gen- 2. First National Bank, 70 Federal Street, Boston, Mass.: erally all goods are submitted to examination by the cus- Buenos Aires, Argentina. tomhouse authorities. It is possible for the consignee to obtain possession of the goods without producing the bill BANKS DOING BUSINESS UNDER AGREEMENT WITH FEDERAL RESERVE BOARD. of lading made out "to order," as well as when made to the 1. American Foreign Banking Corporation, 56 Wall order of the consignee. Although it is important to get Street, New York City: absolute control of the merchandise, there is recourse Cristobal, Canal Zone. against the shipowner for improper delivery. In case a Havana, Cuba. bank's clients desire to sell goods, an agent would be em- Panama, Republic of Panama. Port au Prince, Haiti. ployed. In case goods are to be returned to the shipper, Rio de Janeiro, Brazil. a shipping agent should be employed. 2. Mercantile Bank of the Americas, 44 Pine Street, Where drafts are drawn in a foreign currency the rate of New York City: Paris, France. exchange of date of payment is applied on such bills. The Barcelona, Spain. rate of interest allowed acceptors for retiring drafts before Affiliated institutions— maturity is a matter of arrangement with the banker, as is Banco Mercantil Americano de Cuba: also any charge or expense beyond the protest fees con- Havana, Cuba. Banco Mercantil Americano de Colombia: nected with the return of dishonored items. Bogota, Barranquilla, Cartagena, Medellin, Manizales, Girardot, Cali, Honda, Colombia. Banco Mercantil Americano del Peru: I Lima, Arequipa, Chiclayo, Callao, Peru. Acceptances to 100 Per Cent. | Banco Mercantil Americano de Caracas: ! Caracas, La Guayra, Venezuela. Since the issue of the March BULLETIN the American Mercantile Bank of Brazil: following banks have been authorized by the Para, Pernambuco, Brazil. National Bank of Nicaragua: Federal Reserve Board to accept drafts and Managua, Bluefields, Leon, Granada, bills of exchange up to 100 per cent of their Nicaragua. capital and surplus: Banco Atlantida: La Ceiba, Tegucigalpa, San Pedro Sula, Corn Exchange National Bank, Philadelphia, Pa. Puerto Cortez, Honduras. Guardian Trust & Savings Bank, Toledo, Ohio. 3. Asia Banking Corporation, 66 liberty Street, New Live Stock Exchange National Bank, Chicago, 111. York City: Fifth Avenue Bank, New York City. Shanghai, China. Paterson National Bank, Paterson, N. J. Hankow, China. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

358 FEDERAL RESERVE BULLETIN". APRIL 1,1919. 4. International Banking Corporation, 55 Wall Street, Against this there was a reduction of capital New York City: owing to liquidation (other than for con- Batavia, Java. solidation with other national banks under Bombay, India. the act of June 3, 1864) and reductions of Calcutta, India. capital of $290,000 Canton, China. Cebu, Philippine Islands. Net increase 2, 790,000 Colon, Republic of Panama. Hankow, China. Hongkong, China. Kobe, Japan. State Banks and Trust Companies Admitted. London, England. Manila, Philippine Islands. The following list shows the State banks and Medellin, Colombia. Panama, Republic of Panama. trust companies which have been admitted to Peking, China. membership in the Federal Reserve System Puerto Plata, Dominican Republic. during the month of March. San Pedro de Macoris, Dominican Republic. Santiago, Dominican Republic. Nine hundred and eighty-seven State insti- Santo Domingo, Dominican Republic. tutions are now members of the system, Shanghai, China. having a total capital "of $353,862,051, total Singapore, Straits Settlements. surplus of $404,415,242, and total resources of Soerabaya, Java. Tientsin, China. $7,395,042,168. Yokohama, Japan. (The International Banking Corporation also maintains a branch office in San Francisco, Calif.) Capital. Surplus. Total resources. The First National Corporation, 70 Federal Street, I Boston, Mass., has opened no foreign branches. A branch office of this corporation is maintained at 14 Wall Street, District No. 3. New York Citv. Milford Trust Co., Milford, Bel 825,000 S35.000 8913,051 The Union Banking & Trust Co., Du Bois, Pa 125,000 175,000 2,145,601 New National Bank Charters. District No. 4. The Comptroller of the Currency reports the The Conneaut Mutual Loan & Trust following increases and reductions in the num- Co., Conneaut, Ohio 100,000 65,000 1,621,598 ber of national banks and the capital of na- District No. 6. tional banks during the period from March 1, Bank of Grayson, Grayson, Ga 25,000 137,951 1919, to March 28, 1919, inclusive: District No. 7. 4, Banks. Farmers Savings Bank, Lytton, Iowa... 30,000 5,000 475,869 New charters issued to 16 With capital of $745,000 District No. 8. Increase of capital approved for 28 W. B. Worthen Co., Bankers, Little With new capital of1 2, 335, 000 Kock, Ark 200,000 200,000 1,876,494 Aggregate number of new charters and banks Union Trust & Savings Bank, East St. increasing capital 44 Cl L ay o u C is o , u 1 n 1 t 1 y State Bank, Louisville, 111. 2 2 0 5 0 , , 0 0 0 0 0 0 5 7 0 , , 5 0 0 00 0 2,4 1 7 9 0 2 , , 7 0 8 6 1 7 With aggregate of new capital authorized 3,080,000 Number of banks liquidating (other than District No. 9. those consolidating with other national State Bank of Nashau, Nashau, Mont... 25,000 3,000 180,418 banks under the act of June 3, 1864) 5 Capital of same banks 290,000 District No. 10. Number of banks reducing capital 0 Capital City Bank, Santa Fe, N. Mex... 50,000 10,000 373,006 Reduction of capital ., 0 Total number of banks going into liquidation District No. 11. or reducing capital (other than those con- First Guaranty State Bank, Valley solidating with other national banks under View, Tex 25,000 10,000 145,062 the act of June 3, 1864) 5 The First State Bank, Loraine, Tex 30,000 15,000 171,254 Aggregate capital reduction 290,000 District No. 12. Consolidation of national banks under the act of Nov. 7, 1918 3 Farmers Commercial & Savings Bank, Capital 1,450,000 Oakley, Idaho 25,000 10,000 229,007 Farmers & Merchants Bank, Provo, The foregoing statement shows the aggregate Utah 100,000 2,500 814,010 of increased capital for the period of the Bank of Vernal, Vernal, Utah 60,000 15,000 494,648 banks embraced in statement was 3,080,000 NOTE.—The Fidelity Trust Co., Tacoma, Wash., has been purchased i Includes two increases of capital aggregating §250,000 incident to con- by the Bank of California, N. A., and its assets have been taken over by solidations under the act of Nov. 7,1918. the Tacoma branch of that bank. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

APKIL 1,1919. FEDERAL RESERVE BULLETIN. 359 Commercial Failures Reported. DISTRICT No. 1. Trustee, executor, administrator, registrar of stocks and Numbering only 430 in three weeks of bonds, guardian of estates, assignee, receiver, committee March, against 747 in the corresponding period of estates of lunatics: of 1918, commercial failures in the X:nited Brockton National Bank, Brockton, Mass. Cape Anne National Bank, Gloucester, Mass. States, as reported to R. G. Dun & Co., still County National Bank, Bennington, Vt. make a highly gratifying exhibit. With but Bristol National Bank, Bristol, Oonn. 602 defaults, exclusive of receiverships of New Britain National Bank, New Britain, Conn. three traction, light, and power companies in Merchants National Bank, New Haven, Conn. Guardian of estates, assignee, receiver, committee of esthe South, involving upward of $20,000,000, tates of lunatics: the statement for February (the latest month People's National Bank, Brattleboro, Vt. for which complete statistics are available) is Trustee, executor, administrator, guardian of estates, the best, in number of insolvencies, of any assignee, receiver, committee of estates of lunatics: Ansonia National Bank, Ansonia, Conn. month since last November, and marks the Trustee, executor, administrator, guardian of estates, most favorable showing of any February of receiver, committee of estates of lunatics: which there is record. Moreover, the Feb- New London City National Bank, New London, Conn. ruary liabilities of $11,489,183, while some- Trustee, executor, administrator, registrar of stocks and bonds, guardian of estates, assignee, receiver: what above those of January, are less than in Torrington National Bank, Torrington, Conn. any other month since last August, and are the lightest of any February back to 1907. DISTRICT No. 2. Aside from the sixth district, where a small Trustee, executor, administrator, registrar of stocks and bonds, guardian of estates, assignee, receiver, committee increase appears, and in the eleventh district, of estates of lunatics: where no change is shown, fewer failures First National Bank, Canton, N. Y. occurred during February in all of the 12 Harriman National Bank, New York City. Federal Reserve districts than in the same First National Bank, Jersey City, N. J. Orange National Bank, Orange, N. J. month of 1918, the reductions being pro- Illion National Bank, Illion, N. Y. nounced in most instances. In respect to the Merchants National Bank, Dunkirk, N. Y. indebtedness, increases and decreases were Herkimer National Bank, Herkimer, N. Y. equall^v divided, but the smaller totals than Second National Bank, Cooperstown, N. Y. last year in the first, third, fourth, fifth, ninth, First National Bank, Perth Amboy, N. J. Garfield National Bank, New York City. and tenth districts more than offset the ex- Trustee, executor, administrator, registrar of stocks and pansion elsewhere. bonds, guardian of estates, receiver, committee of estates of lunatics: First Bridgeport National Bank, Bridgeport, Conn. Failures during February. City National Bank, Danbury, Conn. Danbury National Bank, Danbury, Conn. ! i First National Bank, Ridgefield, Conn. Number. ! Liabilities. First National Bank, Stamford, Conn. Districts. DISTRICT No. 3. 1919 1918 1919 1918 Trustee, executor, administrator, registrar of stocks and bonds, guardian of estates, assignee, receiver, com- S F e ir c s o t nd 1 6 0 4 2 1 1 5 3 3 9 2; S 0 9 8 3 ( 3 5 , , 9 5 6 4 1 6 5 68 3 5 8 , , 0 1 1 0 0 0 mittee of estates of lunatics: Third 37 65 447,770 639,038 Salem National Banking Co., Salem, N. J. Fourth.... 40 93 845,343 903.625 Mechanics National Bank, Trenton, N. J. Fifth 27 51 381,910 631,509 Sixth 4« IS 623. «S81 279.9.S9 Lehign Valley National Bank, Bethlehem, Pa. Seventh... 87 161 802,884 1,814' 311 Union National Bank, Huntingdon, Pa. Eighth.... 36 07 424,740 423,386 Corn Exchange National Bank, Philadelphia, Pa. Ninth 10 30 118,400 298,000 Tenth 28 32 265.103 308,987 Williamsport National Bank, Williamsport, Pa. Eleventh. 41 41 930; 894 288,227 Twelfth... 81 105 027,751 1,016.000 DISTRICT NO. 4. Total. 602 980 ! 11,489,183 j 12,829,182Trustee, executor, administrator, registrar of stocks and ! bonds, guardian of estates, assignee, receiver, committee of estates of lunatics: Lamberton National Bank, Franklin, Pa. Fiduciary Powers Granted to National Banks. Punxsutawney National Bank, Punxsutawney, Pa. | Second National Bank of Allegheny, Pittsburgh, Pa. The applications of the following banks forj Trustee, executor, administrator, registrar of stocks and permission to act under section ll(k) of the bonds, guardian of estates, receiver, committee of estates of lunatics: Federal Reserve Act have been approved by First National Bank, Meadville, Pa. the Federal Reserve Board during March: First National Bank, Paris, Ky. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

360 FEDERAL RESERVE APRIL 1,1919. Trustee under a will, registrar of stocks and bonds, trustee Guardian of estates, assignee, receiver, committee of under a mortgage securing an issue of bonds, and such* estates of lunatics: other trust capacities, if any, as the proper courts in First National Bank, Hopkinsville, Ky. Ohio may authorize: Citizens National Bank, El Dorado, Ark. National City Bank, Akron, Ohio. Trustee, executor, administrator, registrar of stocks and Commercial National Bank, Coshocton, Ohio. bonds, guardian of estates, assignee, receiver: First National Bank, Batesville, Ark. DISTRICT No. 5. Trustee, executor, administrator, registrar of stocks and DISTRICT No. 9. bonds, guardian of estates, assignee, receiver, committee of estates of lunatics: Trustee, executor, administrator, registrar of stocks Merchants & Farmers National Bank, Charlotte, N. C. and bonds, guardian of estates, assignee, receiver, First & Citizens National Bank, Elizabeth City, N. C. committee of estates of lunatics: First National Bank, Abingdon, Va. First National Bank, Stillwater, Minn. Second National Bank, Hagerstown, Md. Winona National Bank, Winona, Minn. Wayne National Bank, Goldsboro, N. C. Merchants National Bank, Crookston, Minn. National Union Bank, Rock Hill, S. C. Montana National Bank, Billings, Mont. First National Bank, Huntington, W. Va. Trustee, executor, administrator, registrar of stocks and Guardian of estates, assignee, receiver, committee of es- bonds, guardian of estates, assignee, receiver: tates of lunatics: First National Bank, Austin, Minn. National Exchange Bank, Roanoke, Va. Trustee, executor, administrator, registrar of stocks and bonds: DISTRICT NO. 6. First National Bank, Kalispell, Mont. Trustee, executor, administrator, registrar of stocks and bonds, guardian of estates, assignee, receiver, com- DISTRICT NO. 10. IJmittee of estates of lunatics: Trustee, executor, administrator, registrar of stocks First National Bank, Laurel, Miss. and bonds, guardian of estates, assignee, receiver, Citizens National Bank, Dickson, Tenn. committee of estates of lunatics: Guardian of estates, assignee, receiver, committee of Colorado National Bank, Denver, Colo. estates of lunatics: Denver National Bank, Denver, Colo. First National Bank, Meridian, Miss. First National Bank, Denver, Colo. First National Bank, Alexandria, La. United States National Bank, Denver, Colo. Trustee, executor, administrator, registrar of stocks and Farmers National Bank, Sterling, Colo. bonds, guardian of estates, assignee, receiver: Citizens National Bank, Cheyenne, Wyo. Third National Bank, Atlanta, Ga. First National Bank, Powell, Wyo. First National Bank, Rawlins, Wyo. DISTRICT No. 7. Trustee, executor, administrator, registrar of stocks and Registrar of stocks and bonds: bonds, guardian of estates, assignee, receiver: Corn Exchange National Bank, Chicago, 111. Citizens' National Bank, Boulder, Colo. Trustee, executor, administrator, registrar of stocks and First National Bank, Basin, Wyo. bonds, guardian of estates, assignee, receiver, committee Registrar of stocks and bonds, guardian of estates, assignee, of estates of lunatics: receiver, committee of estates of lunatics: Second National Bank, Charleston, 111. Exchange National Bank, Colorado Springs, Colo. State National Bank, Mattoon, 111. Marion National Bank, Marion, Ind. DISTRICT NO. 11. Old National Bank, Fort Wayne, Ind. Elston National Bank, Crawfordsville, Ind. Trustee, executor, administrator, registrar of stocks and First National Bank, Newcastle, Ind. bonds, guardian of estates, assignee, receiver, committee First National Bank, Council Bluffs, Iowa. of estates of lunatics: First National Bank, Marinette, Wis. City National Bank, Dallas, Tex. Guardian of estates, assignee, receiver, committee of Western National Bank, San Angelo, Tex. estates of lunatics: First National Bank, San Angelo, Tex. Commercial National Bank, Fond du Lac, Wis. City National Bank, Wichita Falls, Tex. Trustee, executor, administrator, guardian of estates, assignee, receiver, committee of estates of lunatics: DISTRICT NO. 12. First National Bank, Rippey, Iowa. Trustee, executor, administrator, registrar of stocks and DISTRICT No. 8. bonds, guardian of estates, assignee, receiver, committee Trustee, executor, administrator, registrar of stocks of estates of lunatics: and bonds, guardian of estates, assignee, receiver, Butte County National Bank, Chico, Calif. committee of estates of lunatics: Capital National Bank, Sacramento, Calif. State National Bank, Texarkana, Ark. First National Bank, Santa Barbara, Calif. State National Bank, St. Louis, Mo. First National Bank, Everett, Wash. First National Bank, Vandalia, 111. Dexter Hprton National Bank, Seattle, Wash. Old State National Bank, Evansville, Ind. First National Bank, Oroville, Wash. First National Bank, Seymour, Ind. Trustee, executor, administrator, guardian of estates, re- Citizens National Bank, Danville, Ky. ceiver, committee of estates of lunatics: First Hardin National Bank, Elizabethtown, Ky. First 'National Bank of San Mateo County, Redwood First National Bank, O'Fallon, 111. City, Calif. City National Bank, Paducah, Ky. Trustee, executor, administrator: First National Bank, Carrollton, Mo. Hailey National Bank, Hailey, Idaho. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

APBIL 1,1919. FEDERAL RESERVE BULLETIN. 361 RULINGS OF THE FEDERAL RESERVE BOARD. Below are published rulings made by the is as to whether or not the power to rediscount Federal Reserve Board which are believed to an additional 10 per cent of paper secured by be of interest to Federal Reserve Banks and the proper Government obligations applies to member banks. the oase of a State member bank which under the State law has already loaned under the reg- Rediscount of paper secured by Government obligations ular line of credit in excess of 10 per cent to one as authorized by the act approved March 3,1919. borrower. Section 9, independent of the Section 3 of an act approved March 3, 1919, amendment, provides in substance that if a amends section 11 of the Federal Reserve Act State bank has loaned in excess of 10 per cent by the substitution of a new subsection (m), to any one borrower, the Federal Reserve which reads as follows: Bank can not rediscount for that bank any of "(m) Upon the affirmative vote of not less the paper of that borrower, but if, on the other than five of its members the Federal Reserve hand, it has not loaned in excess of 10 per cent, Board shall have power to permit Federal Re- then the State member bank shall be afforded serve Banks to discount for any member bank the regular rediscount privileges conferred by notes, drafts, or bills of exchange bearing the section 13 up to the limits set forth in section 13. signature or indorsement of any one borrower in excess of the amount permitted by section The amendment of March 3, 1919, confers nine and section thirteen of this act, but in no powers "in excess of the amount" set forth in case to exceed twenty per centum of the memsections 9 and 13 so that in order to give full ber bank's capital and surplus: Provided, howforce to that part of the language which refers ever, That all such notes, drafts, or bills of exchange discounted for any member bank in ex- to section 9 it must be interpreted to mean that cess of the amount permitted under such sec- even though the State member bank has tions shall be secured by not less than a like loaned in excess of 10 per cent to one borrower face amount of bonds or notes of the United under his regular line of credit, nevertheless the States issued since April twenty-fourth, nine- Federal Reserve Bank may rediscount paper of teen hundred and seventeen, or certificates of indebtedness of the United States: Provided that borrower which is secured by Government further, That the provisions of this subsection obligations of the kinds specified, provided (m) shall not be operative after December that the aggregate of all rediscounts does not thirty-first, nineteen hundred anditwenty." exceed 20 per cent of the member bank's Under the provisions of this section Federal capital and surplus. Reserve Banks are permitted upon the affirma- If it were intended to authorize State member tive vote of not less than five members of the banks to rediscount with their Federal Reserve Federal Reserve Board, to rediscount for any Banks, paper secured by Government obligaone member bank, notes, drafts, or bills of ex- tions only in the case where the State bank has change of any one borrower in excess of those loaned less than 10 per cent under its regular limits now imposed by sections 9 and 13 of the line of credit, there could have been no purpose Federal Reserve Act, provided that the aggre- in referring to section 9 in the amendment. gate in no case shall exceed 20 per cent, and The Board therefore rules, under authority provided that any rediscounts over and above granted in this amendment, that the Federal 10 per cent shall be secured by Government Reserve Banks may rediscount, until Decemobligations of the kinds specified. ber 31, 1920, for national and State member The interpretation of this amendment is very banks, paper secured by not less than a like clear as to rediscounts for national member face amount of bonds or notes of the United banks, and the only question which might arise States issued since April 24, 1917, or certifi- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

362 FEDERAL RESERVE BULLETIN. APRIL 1,1919. cates of indebtedness of the United States, Security covering acceptances in excess of 10 per cent limitation of section 13. without regard to the amount the borrowing Under the provisions of section 13 a member bank may already have loaned to its borrower bank may accept for any one customer in excess under his regular line of credit; provided, howof 10 per cent of its capital and surplus, proever, that the aggregate of all rediscounts must vided it is secured by attached documents or in no case exceed 20 per centum of the capital by some other actual security growing out of and surplus of the member bank. the same transaction as to all acceptances in Illustration.—The result in a specific case excess of the 10 per cent limitation. would be as follows: State member bank A has loaned 15 per cent to X on his regular line of [See opinion of General Counsel in Law Department, p. 364.] credit and 15 per cent to X on the security of Government obligations of the kinds specified Loans by branch banks upon the security of growing sugar crops. above. What and how much might the reserve The Federal Reserve Board is of the opinion bank rediscount of these items? The regular that the branch of a national bank located in line being in excess of 10 per cent, section 9 apa sugar-producing country- may properly make plies and none of that paper may be redisloans to sugar growers upon the security of count ed but the amendment of March 3, 1919, authorizes the rediscount of paper in tl excess" growing sugar crops conveyed to the bank for that purpose, in accordance with the usual of what could have been rediscounted heretobanking custom of the locality in which the fore under section 9 provided, first, that the exbranch is situated. Although the conveyance cess be secured by Government obligations of may be absolute in form, nevertheless, because the kinds specified and provided, second, that of the custom of the country and the underthe aggregate in no event shall exceed 20 per standing between the parties title passes in cent. In the case supposed, therefore, the equity solely for the securit}^ of the loan. The reserve bank could take all 15 per cent of the Board is of the opinion that under such circumpaper secured hy the Government obligations stances the transaction does not constitute an but none of the paper taken in X's regular line ultra vires purchase of a sugar crop. It is of credit. If the commercial line had been 9 per rather a legitimate loan upon the security of a cent, for instance, the reserve bank could regrowing crop conveyed solely for that purpose. discount all of the 9 per cent, and in addition 11 As a sugar crop is generally considered frucius per cent of the paper secured by Government indusiriales as distinguished from frucius naiuobligations, making a total of 20 per cent of the rales, a loan secured by such a crop is not subcapital and surplus of the member bank. ject to the limitations imposed by section 24 of the Federal Reserve Act relating to loans upon Section 11 (k) of the Federal Reserve Act. real estate. It should be understood, however, Under the provisions of section ll(k), as that it is subject to the limitations imposed by amended by the act of September 26, 1918, the section 5200 of the Revised Statutes. Federal Reserve Board may properly permit any national bank to exercise any of the fiduciary powers authorized by that section, Applicability of section 8 of the Clayton Antitrust Act to unless there is some express provision of the banks located in suburban districts. laws of the State in which such bank is located Any bank located within the corporate limits which either directly or by necessary implica- of any city of more than 200,000 inhabitants tion prohibits national banks from exercising comes within the prohibitions of section 8 of such powers, and even if there is such an ex- the Clayton Antitrust Act, even though it be press statute, the Board may issue its permit located in a suburban district. If the bank is if any State bank, trust company, or other actually located within the corporate limits of competing corporation in tKat State is per- the city it comes within that part of the promitted to exercise the powers applied for by visions of section 8 of the act which relates to the national bank. banks located in cities of more than 200,000 inhabitants. [See opinion of General Counsel in Law Department, p. 363.] Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

APKIL 1,1919. FEDERAL RESERVE BULLETIN. 363 LAW DEPARTMENT. The following opinions of General Counsel tions are authorized to exercise those powers. have been authorized for publication by the In other words, in a State where State banks Board since the last edition of the BULLETIN: or trust companies may exercise all of these eight powers with the exception of "adminis- Section ll(k) of the Federal Reserve Act. trator/7 for instance, may national banks lo- Under the provisions of section ll(k), as amended by the act of September 2G, 1918, the Federal Reserve Board cated in that State be permitted to act in that may properly permit any national bank to exercise any capacity ? of the fiduciary powers authorized by that section, unless Under the interpretation of the term "when there is some express provision of the laws of the State in not in contravention of State or local law" as which such bank is located which either directly or by construed before the amendment of September necessary implication prohibits national banks from exercising such powers and even if there is such an express 26, 1918, and as generally followed by the statute, the Board may issue its permit if any State bank, Federal Reserve Board prior to that date, trust company, or other competing corporation in that there is no doubt that the Board may permit a State is permitted to exercise the powers applied for by national bank in such a case to act as '' administhe national bank. trator" if there is no express provision in the MARCH 31, 1919. laws of the State which either directly or by An opinion has been asked with reference necessary implication prohibits national banks to the construction of section ll(k) of the from acting in that capacity. Federal Eeserve Act as amended by the act of It may be argued that the second paragraph September 26, 1918. That section as amended quoted above was intended to make a complete provides in part that the Federal Reserve and exclusive definition of what constitutes Board shall be authorized and empowered: "when not in contravention of State or local "To grant by special permit to national law" and that even though there is no express banks applying therefor, when not in contraprovision of the State law which prohibits vention of State or local law, the right to act national banks from exercising any particular as trustees, executor, administrator, registrar of stocks and bonds, guardian of estates, as- fiduciary power, nevertheless such banks shall signee, receiver, committee on estates of luna- not be permitted to act in any fiduciary tics, or in any other fiduciary capacity in which capacity in which a State bank, trust company, State banks, trust companies, or other corporaor other competing corporation can not act. tions which come into competition with national banks are permitted to act under the It does not appear, however, that this conlaws of the State in which the national bank struction can properly be supported nor that is located. it is consistent with the purposes for which the "Whenever the laws of such State authorize amendment was enacted. or permit the exercise of any or all of the fore- The phrase "when not in contravention of going powers by State banks, trust companies, or other corporations which compete with na- State or local law" is the only restrictive tional banks, the granting to and the exercise clause applicable in this discussion, for it is of such powers by national banks shall not be apparent that the succeeding paragraph is deemed to be in contravention of State or locaJ permissive rather than restrictive and operates law within the meaning of this act." solely as an exception to the restrictive clause The question for determination is whether a of the first paragraph. The purpose of this national bank may exercise any of the eight exception was merely to insure to a national powers expressly set forth in the law quoted bank the right to exercise fiduciary powers in above in any case where neither State banks, any case where a State bank, trust company, trust companies, nor other competing corpora- or other competing corporation is permitted Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

364 FEDERAL RESERVE BULLETIN. APRIL 1, 1919. under the State law to exercise those powers, I by section 11 (k) unless there is an express even if the State laws should contain an statute of the State in which the national express provision either directly or by neces- bank is located which either directly or by sary implication prohibiting national banks necessary implication prohibits a national bank from doing so. from exercising those powers, and that even in In other words, the sole fact that Congress the case where there is such an express statute, expressly provided that it is not in contraven- the Board may approve the application if any tion of State law within the meaning of the State bank, trust company, or other competing first paragraph of section 11 (k) for a national corporation in that State is permitted to exerbank to exercise any fiduciary power which a cise the powers applied for by the national State bank or trust company may exercise, bank. That, I believe, wTas the intention of can not of itself reasonably be construed to Congress and the purpose of the law as imply that it is in contravention of State law amended. for a national bank to exercise a fiduciary power which a State bank or trust company | Security covering acceptances in excess of 10 per cent can not exercise. If that had been the inten- ' limitation of section 13. tion of Congress the term "when not in contra- Under the provisions of section 13 a member bank may vention of State or local law" would have been accept for any one customer in excess of 10 per cent of its omitted from the first paragraph and the capital and surplus, provided it is secured by attached documents or by some other actual security growing out second paragraph w^ould have been made to of the same transaction as to all acceptances in excess of read substantially as follows: that 10 per cent limitation. "No national bank shall be permitted to APRIL 1, 1919. exercise any of the foregoing powers which In an opinion of this office, printed on neither State banks, trust companies, nor other competing corporations are permitted page 254 of the March, 1919, BULLETIN, it was to exercise under the State law." stated that although section 13 of the Federal Reserve Act authorizes member banks to That, however, was not done. The restricaccept drafts drawn in domestic transactions tive phrase "when not in contravention of only when secured at the time of acceptance, State or local law^" was retained in the first nevertheless, the security may properly be paragraph without change and the second and released after acceptance, provided, however, supplementary paragraph was inserted solely that in any case where the total amount acto protect national banks from any possible cepted for any one customer exceeds 10 per discrimination on the part of State legislators. cent of the capital and surplus of the accepting In short, while giving to the legislature of each bank the security can not be released unless State in the first paragraph, the right expressly some other actual security growing out of the to prohibit national banks from exercising same transaction is substituted therefor. fiduciary powers, Congress, in the second para- The question has since been raised whether graph, eliminates the possibility of discrimithe accepting bank may release the security nation against national banks by providing, as against drafts aggregating 10-per cent of the a rule of law, that no State statute shall be capital and surplus of the bank in a case where construed to prohibit a national bank from the total amount of drafts accepted for one exercising any fiduciary power which a State customer and outstanding at one time is in bank, trust company, or other competing excess of that limit. corporation can exercise. Section 13 provides in part that: It is respectfully submitted, therefore, that "No member bank shall accept, whether in a the Federal Reserve Board may legally apforeign or domestic transaction, for any one prove the application of any national bank to person, company, firm, or corporation "to an exercise any of the fiduciary powers authorized amount equal at any time in the aggregate to Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

APRIL 1, 1910. FEDERAL EESERVE BULLETIN. 365 more than ten per centum of its paid-up and drafts; provided, of course, that it holds some unimpaired capital stock and surplus, unless actual security against the additional drafts. the bank is secured either by attached docu- It seems certain that Congress did not inments or by some other actual security growing tend in any case of that character entirely to out of the same transaction as the acceptance; and no bank shall accept such bills to an prohibit the additional acceptances, but that amount equal at any time in the aggregate to it intended to authorize them only if the acmore than one-half of its paid-up and unim- cepting bank retains some actual security paired capital stock and surplus.77 against those additional acceptances so long as The question under consideration involving they constitute an acceptance liability in exa construction of this paragraph may present cess of 10 per cent of its capital and surplus. itself in either one of two ways: If this were not the proper construction of the First. Under the provisions of the section law, a bank which unquestionably might have quoted above, a bank may properly accept for accepted ior one customer drafts aggregating one individual at one time drafts aggregating even as much as 50 per cent of its capital and as much as 50 per cent of its capital and sursurplus wiien secured, would be limited to 10 plus if the bank is secured either by attached per cent for that same customer if it had outdocuments or by some other actual security standing any acceptances of the customer, no growing out of the same transaction as the acceptance. In such a case may the bank matter how small in amount^ against which it after acceptance release the security covering had already released the security. Or to put drafts aggregating 10 per cent of its capital and it another way—a bank which had accepted surplus if it retains the security covering the for one customer unsecured drafts aggregating balance of the drafts ? 10 per cent of its capital and surplus growing Second. Under the provisions of the section out of an export transaction w^ould not be perquoted above, a bank may properly accept for mitted to accept any domestic drafts whatever one individual drafts aggregating 10 per cent for that same customer, unless the law is conof its capital and surplus and immediately strued, to mean that the security provided thereafter release the security against that 10 for in the section quoted above is required only per cent. The question then is whether the as to the amount over and above the 10 per bank may properly accept additional drafts cent limitation. for the customer before the first drafts have I believe that both the letter and the spirit been liquidated if the bank holds some actual of the law authorize the accepting bank to rely security to cover those additional acceptances ? upon the general credit of the customer on its A careful consideration of the provisions ol acceptance liabilities up to an amount equal the law indicates that Congress intended that to 10 per cent of its capital and surplus, and the accepting bank may properly rely upon that in the first case described above it may the general credit of the customer in acceptance release the security against drafts aggregattransactions up to 10 per cent of its capital ing that amount, provided that it holds some and surplus but that for any acceptance lia- ; actual security against the balance of the drafts bility in excess of that amount, incurred for accepted for that customer, and that in the that same customer, it must hold some actual second case described above it may accept security. the additional drafts over and above the 10 In the second case mentioned above, thereper cent limit, even though it has previously fore, where a bank has accepted for a customer released the security against the first drafts, drafts aggregating 10 per cent of its capital and surplus, it may accept additional drafts for provided that it retains some actual security that same customer even before the first drafts against those additional drafts as long as they have been liquidated and even though it no constitute an acceptance liability in excess of longer holds any security against those first 10 per cent of the bank's capital and surplus. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

366 FEDERAL KESERVE BULLETIN. APRIL 1, 1919. Right of national banks located in Hawaii to exercise Carolina so as to authorize State banks joining fiduciary powers. the Federal Reserve system to carry the same reserves as are required of other member banks The Federal Reserve Board may properly authorize by the Federal Reserve Act. As so reenacted national banks located in Hawaii to exercise the fiduciary (by an act, House Bill 399, Senate Bill 556 powers authorized by section ll(k) of the Federal ; ratified February 19, 1919), section 231 reads Reserve Act. as follows: MARCH 13, 1919. An opinion has been asked on the question Every bank or banking and trust company doing business and engaging in banking, trust, fiduciary or surety whether the Federal Reserve Board may, under business and dealing in real estate, shall at all times have the provisions of section 11 (k) of the Federal on hand as reserve in available funds an amount equal to at least fifteen per cent of the aggregate amount oi its Reserve Act, authorize a national bank located demand deposits and five per cent on time deposits. But in Hawaii to exercise fiduciary powers, even no reserve shall be required on deposits secured by United States bonds or North Carolina State bonds. though such banks are not stockholders in any Demand deposits within the meaning of this act shall Federal Reserve Bank. comprise all deposits payable within thirty days, and time deposits shall comprise all deposits payable after thirty Section 11 (k) authorizes the Board to issue days, all savings accounts and certificates of deposit which its permit "to national banks applying therefor, are subject to not less than thirty days' notice before payment and all postal savings deposits. when not in contravention of State or local law." Any bank that is now or may hereafter become a member The authority of the Board conferred by this of a Federal Reserve system, shall maintain the same reserves with respect to deposits as shall be required of section is not limited to those national banks other members of such Federal Reserve system. which are member banks, so that the fact that Another act passed by the same assembly national banks located in Hawaii may not be and ratified February 24, 1919 (House Bill members of the Federal Reserve System does 221, Senate Bill. 327) authorizes banks and not of itself restrict the right of the Federal trust companies to accept drafts or bills of exchange drawn upon them. This act is simi- Reserve Board to issue its permit under this lar to the corresponding provisions of the section of the law. Federal Reserve Act, except that it expressly The sole question for determination, there- authorizes State banks and trust companies, fore, is whether the exercise of fiduciary powers to endorse bills of exchange drawn upon by a national bank would be in contravention another and except that it docs not require drafts drawn in domestic transactions to be of the local laws of Hawaii within the meaning secured at the time of acceptance by shipping of the Act. Inasmuch as there does not appear documents or warehouse receipts. The acceptto be any express provisions of the laws of that ing bank, however, must be secured in any territory which either directly or by necessary case where the aggregate amount accepted for implication prohibits a national bank located any one person, company, firm, or corporation exceeds ten per cent of the bank's capital and there from exercising such powers, it is the surplus. This act reads, in part, as follows: opinion of this office that it would not be in Section 1. Banking corporations and banking and trust contravention of those laws for a national bank companies doing a fiduciary business shall have power to to exercise any of the powers permitted by accept drafts of bills or exchange drawn upon them, and to endorse drafts or bills of exchange drawn upon another section 11 (k) and that the Federal Reserve having not more than six months' sight to run, exclusive Board may, therefore, properly issue its permit. of days of grace, which grow out of transactions involving the importation or exportation of goods, or which grow out of transactions involving the domestic shipment of Amendments to State Banking Laws. goods: Provided, no such banking corporation or banking and trust company, doing a fiduciary business shall accept The following recent enactments of various or endorse, whether in a foreign or domestic transaction, State Legislatures which amend the State bank- for any one person, company, firm or corporation to an amount equal at any time in the aggregate to more than ing laws are published for the information of ten per centum of its paid up and unimpaired capital the Federal Reserve Banks and member banks. stock and surplus, unless the banking corporation or banking and trust company doing a fiduciary business is NORTH CAROLINA. secured, either by attached documents or by some other actual security growing out of the same transaction as The General Assembly of North Carolina the acceptance; and no such banking corporation or recently amended and reenacted section 231 banking and trust company doing a fiduciary business shall accept or endorse such bills or drafts to an amount of chapter 7 of the Revised Code of North* equal at any one time in the aggregate to more than one- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

APRIL 1,1919. FEDERAL RESERVE BULLETIN. 367 half of its paid up and unimpaired capital stock and SEC. 3. Be it further enacted, That any bank or trust comsurplus: Provided, however, that the Corporation Commis- pany incorporated under the laws of this State which is, sion under such general regulations as it may prescribe, or which becomes, a member of a Federal Reserve Bank which shall apply to all banking corporations or banking is by this act vested with all powers conferred upon memand trust companies doing a fiduciary business alike ber banks of the Federal Reserve Banks by the terms of the regardless of the amount of capital stock and surplus, Federal Reserve Act as fully and completely as if such may authorize any banking corporation or banking and powers were specifically enumerated and described herein, trust company doing a fiduciary business to accept or and all such powers shall be exercised subject to all endorse such bills or drafts to an amount not exceeding at restrictions and limitations imposed by the Federal any time in the aggregate one hundred per centum of its Reserve Act, or by regulations of the Federal Reserve paid up and unimpaired capital stock and surplus; Pro- Board made pursuant thereto. The right, however, is vided further, that the aggregate of acceptances growing expressly reserved to revoke or to amend the powers out of domestic transactions shall in no event exceed herein conferred. fifty per centum of such capital stock and surplus. SEC. 4. Be it further enacted, That a compliance on the part of any such bank or trust company with the reserve SOUTH DAKOTA. requirements of the Federal Reserve Act shall be held to be a full compliance with those provisions of the laws The South Dakota Legislature recently en- of this State which require banks or trust companies to acted the following law (senate bill 196) per- maintain cash balances in their vaults or with other banks, and no such bank or trust company shall be required to mitting State banks and trust companies which carry or maintain reserve other than such as is required become members of the Federal Reserve System under the terms of the Federal Reserve Act. to be examined by the Federal Reserve Board SEC. 5. Be it further enacted, that any such bank or and authorizing the State authorities to dis- trust company shall continue to be subject to the supervision and examinations required by the laws of this close to the Federal Reserve Board all infor- State, except that the Federal Reserve Board shall have mation in reference to the affairs of such banks the right, if it deems necessary, to make examinations; and and trust companies: the authorities of this State having supervision over such bank or trust company may disclose to the Federal Reserve Any bank or trust company that is now or hereafter Board, or to examiners duly appointed by it, all informabecomes a member of the Federal ^Reserve System shall tion in reference to the affairs of any bank or trust company continue to be subject to the supervision and examination which has become, or desires to become, a member of required by the laws of this State, except that the Federal a Federal Reserve Bank. Reserve Board shall have the right, if it deems necessary, SEC. 6. Be it further enacted, That all acts and parts of to make examinations; and the authorities of this State acts inconsistent herewith are hereby repealed, and that having supervision over such bank or trust company may this act take effect from and after its passage, the public disclose to the Federal Reserve Board, or to examiners welfare requiring it. duly appointed by it, all information in reference to the affairs of any bank or trust company which has become, The General Assembly of Tennessee also reor desires to become, a member of a Federal Reserve Bank. cently enacted the following act (Public Acts, 1919, chap. 31) authorizing State banks and TENNESSEE. trust companies to accept drafts and issue bills The General Assembly of Tennessee recently of exchange: enacted with some modifications an act recom- SECTION 1. Be it enacted by the General Assembly of the mended by the Federal Reserve Board to State of Tennessee: That all banks and trust companies bring about greater coordination in the powers organized and doing business under the laws of this State of State and national banks and to promote be and they are hereby authorized to accept time bills of exchange drawn upon them and to issue letters of credit uniformity in State and Federal banking laws. authorizing holders thereof to draw drafts upon them or The Tennessee act reads as follows: their correspondents at sight or on time not exceeding one year. SECTION 1. Be it enacted by the General Assembly of the State of Tennessee, That the words "Federal Reserve Act" WEST VIRGINIA. as herein used shall be held to mean and to include the act of Congress of the United States approved December The Federal Reserve Board has been advised 23, 1913, as heretofore and hereafter amended. The that the West Virginia Legislature recently enwords "Federal Reserve Board" shall be held to mean the acted an act recommended by the Federal Federal Reserve Board created and described in the Reserve Board to bring about greater coor- Federal Reserve Act. The words "Federal Reserve Bank" shall be held to mean the Federal Reserve Banks dination in the powers of State and national created and organized under authority of the Federal banks and to promote uniformity in State Reserve Act. The words "Member bank" shall be held and Federal banking laws. No printed copy to mean any National bank, State bank, or banking and of this act as enacted in West Virginia has trust company which has become or which becomes a member of one of the Federal Reserve Banks created by been received by the Board, but the draft the Federal Reserve Act. recommended by the Board reads, in part, SEC. 2. Be it further enacted, That any bank or trust as follows: company incorporated under the laws of this State shall have the power to subscribe to the capital stock and become SECTION 1. The words "Federal Reserve Act" as herein a member of a Federal Reserve Bank. used shall be held to mean and to include the act of Con- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

368 FEDERAL RESERVE BULLETIN. APRIL 1,1919. gress of the United States approved December 23, 1913, as serve Board, Federal Reserve Banks, or examiner, any heretofore and hereafter amended. information with reference to the condition or affairs of The words "'Federal Reserve Board" shall be held to State banks or trust companies organized under the laws mean the Federal Reserve Board created and described of this State which become members of a Federal Reserve in the Federal Reserve Act. Bank, or which apply for membership in a Federal Re- The words ''Federal Reserve Bank" shall be held to' serve Bank. mean the Federal Reserve Banks created and organized SEC. 6. All acts and tho parts of acts inconsistent hereunder authority of the Federal.Reserve Act. with are hereby repealed. The words "member bank" shall be held to mean any national bank, State bank or banking and trust company The West Virginia Legislature has also rewhich has become or which becomes a member of one of cently amended the banking laws of that State the Federal Reserve Banks created bv the Federal Reserve so as to authorize State banks to accept drafts. Act. Barnes' Code, chapter 4, section 78, as so SEC. 2. That any bank or trust company incorporated under the laws of this Commonwealth shall have the power amended, reads as follows: to subscribe to the capital stock and become a member of a Federal Reserve Bank. SEC. 78. Every such bank may exercise, under the laws SEC. 3. Any bank or trust company incorporated under of this State, all such incidental powers as may be necesthe laws of this Commonwealth which is, or which becomes, sary to carry on the business of banking, by discounting a member of a Federal Reserve Bank, is by this act vested promissory notes, negotiating drafts, bills of exchange, and with all powers conferred upon member banks of the other evidences of indebtedness, receiving deposits, buy- Federal Reserve Banks by the terms of the Federal Re- ing and selling exchange, bank notes, bullion, or coin, serve Act as fully and completely as if such powers were and by loaning money on personal or other security. Any specifically enumerated and described herein, and all banking institution may accent for payment at a future such powers shall be exercised subject to all restrictions date drafts drawn upon it by its customers, and to issue and limitations imposed by the Federal Reserve Act, or letters of credit authorizing the holders thereof to draw by regulations of the Federal Reserve Board made pur- drafts upon it or its correspondents, at sight or on time, suant thereto. The right, however, is expressly reserved not exceeding one year. to revoke or to amend "the powers herein conferred. SEC. 4. A compliance on the part of any such bank or WYOMING. trust company with the reserve requirements of the Federal Reserve Act shall be held to be a full compliance The Legislature of Wyoming recently enacted with those provisions of the laws of this State which require the following la,w (act 21, 15th Legislature,, banks or trust companies to maintain cash balances in approved Feb. 19, 1919) authorizing State their vaults or with other banks, and no such bank or trust company shall be required to carry or maintain re- banks and trust companies to become members serve other than such as is required under the terms of of the Federal Reserve system: the Federal Reserve Act. SEC. 5. Any such bank or trust company shall be sub- SECTION 1. The words "Federal Reserve Act" as herein ject to the examinations required under the terms of the used shall be held to mean and to include the act of Con- Federal Reserve Act, and the authorities of this State gress of the United States approved December 23 d, 1913, having supervision over such bank may, in their discre- as heretofore and hereafter amended. tion, accept such examination in lieu of the examination The words "Federal Reserve Bank" shall be held to required under the laws of this Commonwealth. Such mean the Federal Reserve Banks created and organized authorities, their agents and employees, may furnish to under authority of the Federal Reserve Act. the Federal Reserve Board, the Federal Reserve Banks, SEC . 2. That any bank or trust company incorporated or to examiners duly appointed by the Federal Reserve under the laws of this State shall have the power to sub- Board, or the Federal Reserve Banks, copies of all ex- scribe to the capital stock and become a member of a aminations made and may disclose to such Federal Re- Federal Reserve Bank. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

APHI-L 1, 1919. FEDERAL RESERVE BULLETIN. 369 BANK TRANSACTIONS DURING FEBRUARY-MARCH. Debits to individual account reported by only five days7 operations owing to the general clearing-house banks in 152 leading cities for observance of February 22 as a legal holiday. the four weeks ending March 19 averaged about Weekly totals of debits to bank account, 2 per cent larger than for the preceding four while moving in the same direction, show, weeks. This increase was due, however, ex- however, smaller changes, especially for the clusively to the large total for the week ending week ending March 19. March 19, when over 1 billion of tax pay- Figures of reporting clearing-house centers ments were made, largely in the form of bank by Federal Reserve districts are shown as checks and drafts. The smallest total is shown follows: for the week ending February 26, which covers Weekly figures of clearing-house bank debits to deposit accounts. [In thousands of dollars; i. c, 000 omitted.] Debits to individual account. Debits to banks' and bankers' account. District. eb. 26. Mar. 5. Feb. 26. Mar. 5. Mar. 12. Mar. 19. No. 1—Boston: Bangor 2,364 2,675 2,512 3,016 301 316 478 Boston 208,786 253,984 225,792 271,524 157,058 189,793 165,489 181,471 Fall River 4,926 5,601 4,895 6,514 205 262 554 470 Hartford 14,353 20,784 17,190 22,354 1,103 1,583 1,561 1,459 Holyoke 2,089 2,894 2,437 2,608 568 475 506 542 Lowell 3,578 4,217 4,301 4,397 258 308 242 296 New Bedford 4,895 5,177 5,214 6,336 163 190 170 New Haven 13,884 14,770 14,531 15,841 372 373 955 Providence 20,988 25,850 24,610 30,763 1,391 1,572 1,350 1,500 Springfield 9,739 12,457 11,300 12,871 343 390 351 529 Waterbury 6,400 6,110 5,063 6,715 433 386 347 605 Worcester 10,512 13,487 11,590 14,049 857 1,472 1,172 1,445 No. 2—New York: Albany 20,082 20,586 17,907 16,016 10;,834 10,482 8,130 9,337 Binghamton 2,298 3,344 2,644 2,940 Buffalo 43,320 54,718 44,165 56,413 8,344 7,815 9,035 9,432 New York 513,436 3,979,552 1,587,911 4.325,624 1,386', 758 1,666,278 1,467,603 1,633,776 Passaic 2,566 2,944 ' 2,652 3,152 '298 345 216 211 Rochester 20,267 24,930 22,042 27,611 465 634 727 589 Syracuse 9,386 13,619 10,348 15,365 271 486 675 479 No. 3—Philadelphia: Altoona. 2,071 2,416 2,315 2,446 Chester 4,104 4,694 3,901 4,035 66 5 56 Harrisburg 4.577 5,290 5,240 3,750 15 3 3 Johnstown 2; 737 3,136 2,735 3,117 292 154 224 168 Lancaster 3,338 4,321 4,316 4,603 222 51 217 37 Philadelphia 246,140 279,281 281,940 304,806 301,586 341,765 289,376 133,469 Reading 3,229 3,605 3,618 4,155 Scranton 11,954 9,911 11,194 9,005 1,527 2,032 1,804 2,027 Trenton 7,603 8,891 8,319 8,566 113 232 204 228 Wilkes-Barre 5,100 6,703 5,187 5,998 60 82 102 Williamsport 2,547 3,039 2,732 3,312 238 165 634 870 Wilmington 10,084 8,800 7,968 9,985 York.... 2,380 2,928 3,063 3,380 "53" 61 90 79 No. 4—Cleveland: Akron 12,976 18,420 16,550 16,320 122 115 55 Cincinnati 47,460 50,809 46,376 65,100 36,300 33,540 48,316 50,000 Cleveland 99,871 121,148 103,730 152,003 92,747 113,345 107,804 122,839 Columbus 19,888 22,545 23,546 2,699 4,219 3,752 Dayton 9,972 11,594 10,384 9,897 627 597 462 Erie 5,700 5,783 5,510 6,576 101 54 54 79 Greenburg, Pa 2,068 2,587 2,165 1,985 Lexington 8,516 9,607 8,303 6,900 6,600 6,950 4,709 4,224 Oil City 2,212 2,312 2,345 2,382 2,542 2,655 2,121 2,682 Pittsburgh 151,457 192,185 128,181 176,862 280,159 404,570 306,732 409,567 Springfield 2,814 3,981 2,931 3,116 2,272 2,415 2,215 2,174 Toledo 20,906 18,451 21,363 25,274 6,216 7,549 11,502 Wheeling 6,058 7,864 7,392 8,271 7,724 7,482 Youngstown 11,880 12,862 13,176 10,765 559 901 '601 318 No. 5—Richmond: Baltimore 63,366 78,332 62,744 80,319 33,310 41,527 34,859 39,660 Charleston 6,521 8,370 6,802 7,102 2,527 2,758 2,876 3,170 Charlotte... 5,061 5,500 3,600 6,200 7,385 7,300 4,100 9,100 Columbia 4,635 6,148 6,359 6,427 3,213 3,060 3,049 3,231 Norfolk 16,455 16,613 15,125 16,661 20,580 21,842 21,773 19,795 Raleigh 5,200 4,500 2,500 5,250 3,000 3,900 2,500 4,000 Richmond 21,318 23,160 20,520 23,471 61,048 65,168 56,345 60,822 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

370 FEDERAL RESERVE BULLETIN. AFKIL 1, 1910. Weekly figures of clearing-house bank debits to deposit accounts—Continued. Debits to individual account. Debits to banks' and bankers' account. District. Feb. 26. Mar. 5. Mar. 12. Mar. 19.Feb. 26. Mar. 5. Mar. 12. Mar. 19. No. 6—Atlanta: Atlanta 19,538 23,753 22,321 26,131 19,128 21,699 22,062 32,890 Augusta 6,247 6,569 5,331 6,212 1,600 2,119 2,318 2,203 Birmingham 13,439 13,563 12,105 13,461 4,917 5,309 4,666 4,849 Chattanooga 6,943 8,448 8,625 12,218 3,792 4,032 4,030 4,681 Jacksonville 9,911 11,519 8,983 10,713 7,578 8,768 10,106 9,299 Knoxville 4,059 5,213 5,068 6,088 1,604 1,539 1,542 1,637 Macon 5,626 5,080 4,613 5,358 1,936 2,627 2,983 8,255 Mobile 6,012 6,930 5,912 5,995 649 753 889 800 Montgomery 2,951 3,865 4,324 4,160 458 480 554 652 Nashville 19,972 20,293 19,359 21,104 11,544 13,382 16,226 17,265 New Orleans 58,810 54,300 60,361 65,970 30,913 34,925 • 35,503 35,264 Pensacola 1,868 2,045 2,453 2,089 849 841 1,342 1,042 Savannah 10,096 10,869 11,104 12,570 6,238 9,156 7,031 8,466 Tampa 4,439 4,600 4,622 5,061 1,405 1,613 1,584 2,953 Vicksburg 1,565 1,985 1 741 1,671 172 130 143 179 No. 7—Chicago: Bay City 2,243 2,542 3,310 275 485 420 Bloomington 2,088 5,015 2,848 2,659 1,099 2,222 1,414 1,249 Cedar Rapids 4,124 5,915 5,553 4,423 7,712 13,814 16,471 11,901 Chicago 511,115 611,728 500,124 576,649 486,194 636,196 610,552 600,361 Davenport 7,872 9,036 6,160 7,344 1,645 2,755 2,334 2,108 Decatur 2,416 4,318 3,045 3,369 443 1,149 846 833 DesMoines 14,182 25,551 25,266 19,699 30,977 56,576 58,603 43,514 Detroit 89,557 97,504 84,809 121,607 36,490 41,629 41,619 51,539 Dubuque 1,707 2,200 2,360 2,000 1,000 1,760 1,787 4,027 Flint 6,072 5,553 5,725 6,300 24 51 29 64 Fort Wayne 4,533 5,143 4,625 4,120 1,565 2,569 2,293 1,810 Grand Rapids 16,559 14,224 17,279 15,955 3,438 3,-808 3,807 4,187 Indianapolis 24,501 30,941 25,278 28,136 20,539 30,479 23,636 21,990 Kalamazoo 2,406 3,070 2,645 3,258 351 434 549 473 Lansing 3,227 3,906 3,625 4,277 181 186 148 244 Milwaukee 41,523 47,817 47,352 65,137 23,692 29,829 32,415 Peoria 10,942 10,047 8,756 11,407 1,935 4,900 3,777 3,159 Rockford,Ill 3,928 5,904 5,129 4,484 153 360 389 233 Sioux City 15,948 14,233 16,684 14,823 14,637 26,327 17,970 South Bend 2,465 2,832 4,800 1.454 1,463 2,300 2,104 Springfield 2,589 7,321 4,685 4,606 M98 2,764 1,502 1,206 Waterloo, Iowa 2,422 4,101 3,443 3,045 1,005 1,868 2,215 1,573 No. 8—St. Louis— M Evansville 3,501 4,513 4,771 4,069 1,147 1,433 1,387 3,370 Little Rock 6,678 7,627 6,408 7,791 5,942 6,189 5,679 6,546 Louisville 36,376 53,765 43,646 38,097 36,710 49,905 45,456 41,020 Memphis 34,674 27,026 27,967 26,100 21,747 24,180 23,467 24,085 St. Louis 109,286 128,590 114,632 152,869 108,723 126,268 123,647 132,037 No. 9—Minneapolis: Aberdeen 1,224 1,233 1,159 697 814 881 970 Billings 1,616 2,765 2,030 1,947 836 846 871 812 Duluth 9,575 12,893 11,393 13,205 3,250 3,676 4,010 3,963 Fargo 1,765 2,214 2,057 3,728 2,040 2,168 2,062 2,765 Grand Forks 946 1,621 "1,268 1,050 750 989 1,016 940 Great Falls 2,412 2,178 1,926 2,142 3,166 2,961 2,349 2,499 Helena 2,249 2,299 2,653 1,899 2,451 2,651 2,350 2,591 Minneapolis 54,292 62,299 62,783 71,174 51,744 67,433 71,370 74,516 St. Paul 32,507 36,824 32,162 34,943 35,431 44,097 42,635 40,878 Superior 1,578 2,020 1,730 1,208 121 165 119 100 Winona 826 931 922 812 6T8 1,085 1,209 1?261 No. 10—Kansas City: Atchison 872 1,119 943 432 661 725 520 Bartlesville, Okla-.. 1,436 2,504 1,901 2,116 51 76 77 43 Colorado Springs - - - 1,718 2,745 2,071 2,556 720 882 617 1,109 Denver 21,426 32,000 26,497 26,682 17,759 22,821 25,112 25,958 Joplin 2,869 2,986 2,951 2,918 399 607 559 619 Kansas City, Kans - 2,680 2,713 3,183 3,136 4,378 5,629 5,976 5,329 Kansas City, Mo-.. 83,918 118,209 84,079 90,691 155,785 154,285 180,326 166,336 Muskogec, Okla 2,833 2,582 3,587 3,424 1,746 2,348 1,683 2,174 Oklahoma City 10,838 11,641 12,073 11,436 8,469 11,596 10,524 9,292 Omaha 56,947 64,322 61,068 65,236 54,744 85,035 99,306 78,112 Pueblo 3,250 2,895 3,550 3,206 598 823 1,261 1,137 St. Joseph 22,743 25,059 13,476 17,674 16,152 10,695 16,371 19,633 Topeka 3,842 5,390 4,328 5,806 1,414 1,711 1.916 1,892 Tulsa 16,062 18,839 18,001 18,336 7,974 8,430 8,664 9,080 Wichita 8,225 8,876 10,290 10,695 10,282 12,468 12,302 11,953 No. 11—Dallas: Albuquerque 1,296 1,052 1,361 1,438 2,983 2,608 3,514 4,095 Austin 2,523 2,550 3,572 5,791 2,388 2,290 4,052 3,368 Beaumont 3,678 3,555 3,804 3,447 354 306 475 396 Dallas. ..i 24,942 28,754 29,879 30,679 52,806 62,757 62,633 56,657 El Paso 6,074 6,853 7,574 6,121 7,453 7,140 8,221 7,967 Fort Worth 15,935 14,795 16,426 16,920 33,539 30,584 39,093 39,661 Galveston 5.040 4,712 5,432 4,927 4,168 2,978 4,135 5,399 Houston 19,305 19,871 25,924 22,818 40,300 38,640 45,711 47,041 San Antonio 15,449 15,827 ^,830 l6,396 1 Figures comprise debits to individual as well as to banks and bankers' account. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

APBIL 1, 1919. FEDERAL RESERVE BULLETIN. 371 WeeJdy figures of clearing-house debits to deposit accounts—Continued. Debits to banks' and bankers' account. District. Mar. 12. ! Mar. 19. ! Feb. 26. Mar. 5. Mar. 12. Mar. 19. No. 11—Dallas—Continued. Shrevcport : 3,908 3,977 4,959 1 4,319 3,594 2,G98 3,427 Texar kana I 96S 1,076 1,384 ; 1,683 403 201 328 322 Tucson i 1,551 1,808 1,818 ! 1,821 1,409 1,385 1,312 1,465 Waco I 3,291 3,553 3,345 2,549 2,230 1,563 2,704 1,819 No. 12—San Francisco: Boise 1,580 2,184 2,096 ! 1,795 4,646 4,686 5,382 Fresno • 4,69S 5,691 5,512 ! 6,447 2,658 3,154 3,350 3,421 Long Beach : 2.542 3,355 2,994 i 2,966 92 115 137 246 Los Angeles ; 61' 088 73,802 58,196 i 63,039 32,087 42,980 41,795 42,133 Oakland : 10,199 13,206 12,582 i 12,005 2,198 2,749 2,890 3,059 Ogdcn 3,076 3,766 3,630 j 3,569 4,391 5,978 4,514 5,619 Pasadena 2,678 3,421 2,892 ! 2.923 364 717 273 225 Portland 29,215 37,407 34,501 ! 40; 864 18,032 22,320 20,981 22,448 Reno • 1 j 531 1,887 2,009 i 1,901 1,288 1,459 1,325 1,440 Sacramento 9,063 13,316 10,470 : 11,086 5,320 5,819 5,266 4,442 Bait Late City 12,007 15,292 14,038 13,478 15,949 20,007 19,119 19,678 San Diego 3,986 5,292 4,842 i 5,035 219 469 318 422 San Francisco 139,634 185,091 135.969 i 172,927 88,449 107,339 98,687 107,697 San Jose • 3.317 3,506 3', 440 i 3,544 1,132 1,869 1,622 2,114 Seattle 34', 293 40,795 36,604 ! 49,003 17,135 22,389 21,031 13,517 Spokane ; 6,963 8,077 8,537 : 10,135 5,588 7,114 6,738 7,711 Stockton i 3,357 4,376 3.702 i 4,675 2,442 3.125 2,592 2,939 Tacoma j 7,132 9,342 13;726 i 11,832 6,116 71476 7,408 7,639 Yafcixna I 1,785 1,994 2,299 j 2,354 377 513 524 4S0 Recapitulation showing figures for clearing-house centers reporting for each of the four weeks. [In thousands of dollars; i. e., 000 omitted.] Debits to individual account. Debits to banks' and bankers' account. Number District. of centers included. Feb. 26. I Mar. 5. \ Mar. 12. Mar. 19. i Feb. 26. ! Mar. 5. No. 1—Boston 302.514 i 368,006 329,435 396,988 163,165 197,092 172,613 189,832 No. 2—New York 3,611,355 I4,099,693 3,687,669 4,447,121 1,406,970 1,686,040 1,486,386 1,653,824 No. 3—Philadelphia... 305,864 ! 343,015 342,528 367,158 304,100 344,601 292,640 337,040 No. 4—Cleveland 381,890 i 457,603 368,406 485,451 435,049 580,422 488,795 611,615 No. 5—Richmond 122,556 i 142,623 117,650 145,430 131,063 145,555 125,502 139,778 No. 6—Atlanta 171,476 i 179,032 176,922 198,801 92,783 107,373 ! 110,979 I 130,435 No. 7—Chicago 772,419 j 918,901 782,480 909,306 636,564 854,446 ! 830,912 803,380 No. 8—St. Louis 190.515 ! 221,521 197,424 228,926 j 174,269 207,975 199,636 207, OSS No. 9—Minneapolis 108,654 j 127,268 120,157 133,267 101,164 120,885 128,872 131,295 No. 10—Kansas City... 239,659 1 301,880 247,GOO 264,855 280,953 318,067 365,419 333,187 No. 11—Dallas 93,960 ! 98,383 112,308 108,909 151,627 153,450 175,605 171,242 No. 12—San Francisco. 338,124 ! 431,800 358,039 419,578 260,278 243,952 250,214 Grand total. 152 6,638,986 | 7,689,725 6,840,918 8,105,790 4,086,190 4,982,184 i 4,621,311 4,958,900 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

372 FEDERAL RESERVE BUIiETIK. APRIL 1,1919. WHOLESALE PRICES, oranges, and certain pork products (in particular hams), as well as cotton textiles, among In continuation of figures shown in the March which may be mentioned especially print BULLETIN there are presented below monthly cloths, sheetings, shirtings, flannels, ginghams, index numbers of wholesale prices for the period drillings, and underwear. July, 1918, to February, 1919, compared with The index number for the group of raw malike figures for February of previous years, also terials has decreased from 195 to 192. Confor July, 1914, the month immediately preced- siderable diversity, however, is exhibited by ing the outbreak of the great war, and index the movements oi the index numbers for the numbers for the years 1914 to 1918, inclusive. several subgroups. The index number for the The general index number is that of the United animal-products group has increased from 207 States Bureau of Labor Statistics. In addition to 208, at which figure it stood during the there are presented separate numbers for cer- months of November and December. While tain particular classes of commodities in ac- the prices of several classes of wool decreased, cordance with plans announced in previous is- these decreases were more than offset by insues of the BULLETIN. creases in the prices of calfskins, hogs, sheep Quotations for six commodities, namely, and poultry, and silk. The index number for hemlock (Pennsylvania and West Virginia the forest-products subgroup likewise shows stock, New York), brick (common, salmon, run an increase, from 147 to 148. A decrease in of kiln, Chicago), prunes (California,New York), the price of white pine has been more than salmon (canned, Alaska red, New York), ho- offset by increases m the prices of plain and siery (men's seamless cashmere), and under- quartered oak, yellow pine, and poplar. On wear (merino shirts and drawers), which had the other hand, the index number for the group been dropped temporarily, have been secured of mineral products has again decreased, from for the months of January and February, and 177 to 174. While the prices of various classes the commodities again included in the calcula- of bituminous coal on the whole increased tion of the index number for the latter month. slightly, considerable decreases occurred in. the Quotations for another grade of flour in Minne- prices of coke and copper, and slight decreases apolis, namely, first clear, have also been em- in the prices of lead and spelter. The greatest ployed, the weight previously assigned to stand- decrease, however, is exhibited by the group ard patent flour in Minneapolis now being di- of farm products, the index number for which vided between the two grades. Index numbers fell from 232 to 222, due largely to decreases for January are provisional, due to the fact that in the prices of cotton, certain grains, in parcertain data were not received in time to render ticular corn and oats, and hay. Lesser dethem available for use in the calculations. creases in price are shown for barley and rye, During February the considerable fall in while slight decreases in the price of winter prices remarked between December and Janu- wheat were partly offset by an increase in the ary has continued. The general index number price of spring wheat. A considerable increase of the Bureau of Labor Statistics has decreased in the price of tobacco was also noted. from 202 to 197. The decrease has again been The index number for the group of progeneral, as is shown by the fact that the index ducers' goods has again declined, from 194 to number for each of the three groups of com- 191. While increases in price occurred in the modities has fallen. The decrease, however, case of several commodities included in the has been greatest in the case of consumers1 group, in particular cement, various grades of goods, the index number for which has fallen leather, and rope, decreases occurred for an from 212 to 202. Increases occurred only in extended list of commodities, among which several cases among commodities included in may be noted cotton and worsted yarns, certain the group, most prominent among these being metal products, such as copper wire, bar iron apples, lard, lamb, and illuminating oil (for ex- and cast-iron pipe, wood pulp, naval stores, port). While the quotation for standard pat- jute, linseed oil, and certain chemicals. ent flour in Minneapolis increased slightly, cor- Index numbers for the various groups for the responding decreases occurred in the case of year 1918 are now available. While the gencertain of the other flour quotations. Consid- eral index number of the Bureau of Labor Staerable decreases occurred for an extended list tistics increased from 175 to 196, the increase of commodities. Most prominent were certain was by no means uniform for the three groups of foodstuffs, such as butter, cheese, milk and commodities. The greatest increase occurred beans, potatoes, peanuts, corn meal, in the case of the number for the consumers' Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

APRIL 1,1919. FEDERAL RESERVE BULLETIN. 373 goods group, namely, from 172 to 202. The tively. The monthly index number for the monthly index number for this group increased former increased steadily thorughout the two steadily throughout both 1917 and 1918, reach- years, reaching a high point of 255 in Septeming its high figure of 216 in December, 1918. ber, 1918, while the highest mark reached by Certain vegetables, such as potatoes and beans, the latter was 219 in the same month, though were the only important commodities included previously there had been recession from a figin the group whose average price during the ure of 195 reached in September, 1917. Wheat, year 1918 was lower than during 1917. The corn, and hides were the only important comsmallest increase occurred in the case of pro-modities included in these groups, for which the ducers' goods, the index numbers for the years average price during the year 1918 was lower 1917 and 1918 standing at 187 and 196, res- than during the year 1917, while this is true of pectively. The highest level reached by the none of the commodities included in the forest monthly number for this group was 212 in products subgroup. The index number for the July, 1917, though steady increase was shown latter increased from 118 in 1917 to 132 in 1918, from December, 1917, until October 1918, the monthly number increasing steadily when the number reached 205. Due largely to throughout the two years, and reaching its the institution of price fixing, the average highest point in November and December, prices during the year 1918 were lower than 1918. On the other hand, the index number for during 1917 for a considerable list of commodi- the mineral products subgroup for the year 1918 ties, among which may be mentioned leather, stands at 176, a decrease of 3 points from the wood pulp, and certain metal products, in par- 1917 figure. The highest level reached by the ticular steel billets and plates, structural steel, monthly number for the group was 205 in copper wire, and tin plate, although increase in June, 1917, though steady increase during 1918 price occurred in the case of steel rails. Great after the sharp fall to 150 in October, 1917, diversit}^ is exhibited by the numbers for the resulted in a figure of 183 in November, 1918. various subgroups included in the group of Though the average prices of anthracite coal, raw materials. The increase in the number for pig tin, and iron ore in 1918 were higher than the latter group, from 173 to 193, was duein 1917, the reverse was true in the case of pig largely to the increase in the numbers for the iron, lead, copper ingots, and spelter, thus farm products and animal products subgroups, accounting for the decrease in the number for from 210 to 240 and from* 169 to 199, respec- the group. Index numbers of wholesale prices in the United Stales for principal classes of commodities. [Average price for 1913=100.] Raw materials. All commodities Year and month. Farm Animal Forest | Mineral Total raw Pr g o o d o u d c s e . rs' Con go s o u d m s e . rs' L ( a Bu b r o e r a S u t a o - f products. products. products, j products, i materials. tistics index number). July, 1914 102 106 97 88 98 92 103 99 February, 1915 116 95 94 87 98 95 104 100 February, 1916 115 106 96 111 108 123 111 111 February, 1917 157 145 100 185 151 168 155 155 February, 1918 242 176 131 172 184 184 193 187 July, 1918 237 209 14® 180 196 196 202 198 August, 1918 246 215 143 180 200 199 205 202 September, 1918 255 219 143 180 204 203 209 207 October, 1918 240 209 143 181 198 205 210 204 November, 1918 234 208 150 I 183 197 205 214 206 December, 1918 237 208 150 182 198 199 216 206 January, 1919 232 207 147 177 195 194 212 202 February, 1919 222 208 148 174 192 191 202 197 Average for year 1914. 103 104 97 90 99 95 101 99 1915. 111 100 93 91 99 100 102 100 191G.. 128 119 96 123 118 140 123 123 1917. 210 169 118 179 173 187 172 175 1918. 240 199 132 176 193 196 202 196 Tn order to give a more concrete illustration j for certain commodities of a basic character, of actual price movements there are also pre- I The actual average monthly prices shown in sented in the following table monthly actual j the table have been abstracted from the records and relative figures covering the same period | of the United States Bureau of Labor Statistics. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

874 FEDERAL RESERVE BULLETIN. APRIL 1, 11)19. Average monthly 'wholesale prices of commodities. [Average price for 1913=100.] Co C r h n i , c N ag o o . . 3, Co N tt e o w n , O m r i l d ea d n li s n . g, n W o M rt h i h n e e n a r e t n , a N p sp o o r l . i i s n 1 . g , , W r h e C d e h a w i t c , i a n N g t o o e . . r , 2, g C o a o C t d t h l t e i o , c a s c g t h e o o e . i r c s e , , .H st h i e d e e e a r s s v , , y p C n a h c a ic k ti a e v g r e o s' . , Year and month. Average Rela- Average Rela- Average Rela- i Average ! Rela- p A r v ic e e r a p g e e r Rela- Average Relaprice per tive price per tive price per tive price per I tive 100 tive price per tive bushel. price. pound. price. bushel. price. bushel. I price. pounds. price. pound. price. July, 1911 SO. 7044 114 SO. 1331 105 SO. 8971 103 SO. 8210 83 $9. 2188 108 SO. 1938 105 February, 1015. .7460 121 .0804 63 1.5135 173 1.6091 163 8.1750 96 .2350 128 February, 1916. .7385 120 .1142 90 1.2825 147 1. 2585 128 8. 4688 100 . 2375 129 February, 1917. 1.0053 163 .1708 134 1.8080 207 1. 7969 182 11.1313 131 .3175 173 February, 1918. 1.6375 266 .3097 244 2.1700 248 2.1700 220 13.0750 154 .2925 159 July, 1918 1. 5900 258 . 2945 232 2.1700 248 2.2470 228 17. 6250 207 .3240 176 August, 1918.-.. 1.6225 264 . 3038 239 2. 2231 255 2. 2325 226 17. 8250 210 .3000 163 September, 1918. 1. 5313 249 . 3578 282 2. 2169 254 2. 2363 227 18.4100 216 .3000 163 October, 1918... 1.3270 216 .3150 248 2. 2155 254 2.2345 227 17.8563 210 .3000 163 November, 1918. 1. 2675 206 .3007 237 2. 2206 254 2. 2375 227 18.1563 213 .2900 158 December, 1918. 1.4290 232 .2958 233 2. 2205 254 2.3088 234 18.3600 216 . 2900 158 January, 1919... 1.3750 223 . 2850 223 2. 2225 254 2.3788 241 18.4.125 216 .2800 152 February, 1919. 1.2763 207 . 2694 212 2.2350 256 2.3450 18.4688 217 152 | H C og h s ic , a l g ig o h . t, W gra o d o e l, s , O s h c i o o u , r H ed i- . N H e e w m Y lo o c r k k , . Y N e f e l l l w o o o w r Y i n p o g i r n , k e . , ! I s C t o o a v t l i e , d , a e N n w e t a h w t r e a Y r c . i o t r e k , Co r a C u l, n i n b o c it f i u n m n m a i i n t n i e . o , us, Year and month. iVyerago Reia- I Average • Rela- Average Rela- Average Rela- Average Rela- Average Relative j price per ! tive price per tive i price per tive price per tive price per tive pounds. price. | i pound. i l price. M foot. price. | Mfeet. price. long ton price. short ton. price. July, 1914 ! S8.7563 104 ! SO. 4444 ! 94 $24.5000 101 $42.0000 I 94 34.9726 $2. 2000 100 February, 1915 ; 6.7281 80 j . 5429 ! 115 24.2500 100 41. 0000 92 5.1866 102 2.2000 100 February, 1916 i 8.1375 96 ! .6571 ! 140 22. 2500 92 40.0000 i 90 5. 2588 104 2. 2000 100 February, 1917 \ 12. 2063 144 ! . 8286 ! 176 25.5000 105 41. 5000 93 5.6826 112 5.0000 227 February, 1918 , 16.6938 197 | 1.4545 i 309 30. 5000 126 57.0000 128 6.5000 128 3.6000 164 July, 1918 ' 18.0000 213 1.4365 i 305 34. 5000 142 60.0000 135 6. 5968 130 4.1000 186 August, 1918 j 19.7750 234 ; 1.4365 • 305 63.0000 141 6. 5992 130 4.1000 186 September, 1918 20.0700 237 ' 1.4365 305 63.0000 141 6. 9000 136 4.1000 186 October, 1918 | 18.0938 214 1.4365 305 63.0000 141 6. 9000 136 4.1000 186 November, 1918 17.7063 209 1 4365 305 63. 0000 141 7.8071 140 4.1000 186 December, 1918 | 17.4400 206 1 4365 305 63.0000 141 7.9500 143 4.1000 186 January, 1919 ! 17.4125 206 l! 1200 255 36.0000 149 63.0000 141 7.9500 143 4.1000 186 February, 1919 i 17.4888 207 1 0909 232 36.0000 149 64.0000 144 7.9500 157 4.0000 182 C t o as a , l , N Po o c rf a o h l o k n . - Coke, v C ii o le n . nells- C e N o l p e o p c w e tr r o , Y l i y o n t r g i k c o . , t, d N e L s e e i w a lv d e , Y r p i o z i r e g k d , . , P P et e r n o a n t l e s w u y m e lv ll , a s c n . r i u a d , e. ' i Pig iron, basic, Year and month. Average j Rcla- Average ! Rola- Average Rela- Average j Rola- Average Rela- Average j Relaprico per live X)rice per •! tive price per tive price per I live price per tive price per • tivo long ton. price. short ton. price. pound. price. pound. | price. barrel. price. long ton. ; price. July, 1914 S3. 0000 100 SI. 8750 j SO. 1340 85 SO. 0390 i 89 SI. 7500 71 S13.0000 88 February, 1915.. 2. 8500 95 1. 5750 i 65 .1475 94 .0380 i 86 1.5000 Ci 12.5000 85 February, 1916.. 3.0000 100 2.6250 j 108 . 2538 161 .0610 i 139 2.3500 96 17.6900 120 February, 1917.. 6.5000 217 7.5000 ! 307 . 3300 210 .0850 i 193 3.0500 124 30.0000 204 February, 1918.. 4.4120 147 6.0000 ! 216 .2350 149 . 0706 | 160 3.9375 161 33. 0000 224 July, 1918 4. 6320 154 6.0000 216 . 2550 162 .0802 i 182 4.0000 163 32.0000 218 August, 1918 4.6320 154 6.0000 246 .2600 165 .0805 i 183 4.0000 163 32.0000 218 September, 1918. 4.6320 154 6.0000 246 .2600 165 .0805 183 4.0000 163 32.0000 218 October, 1918.... 4. 6320 154 6.0000 246 .2600 165 .0805 I 183 4.0000 163 33.0000 224 November, 1918. 4. 6320 154 6.0000 246 .2600 165 .0805 I 183 4.0000 163 33.0000 224 December, 1918.. 4.6320 154 6.0000 24.6 .2540 161 . 0667 152 4. 0000 163 33.0000 224 January, 1919.... 4.6320 154 5. 7813 237 . 2038 130 . 0558 127 4.0000 163 30.0000 204 February, 1919.. 4. 6320 154 5.2188 214 .1731 110 .0508 115 4.0000 163 30.0000 204 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

APEIL 1, 1919. FEDERAL EESERYE BULLETIN. 375 Average monthly wholesale prices of commodities—Continued. n C or o t t h to e 1 n 0 rn / 1 y . c a o r n n e s s, h L em ea l t o h c e k r , N so o l . e 1 , . S P t B e it e e t s l s , s b e b u m i r ll e g e r h t , . s, S ta te n b e k l u , , r p g I l ' h i a t , t t e s- s , ! i i Ste P el i h , t t e r s a a b i r l u t s h r , , g o h p . en 2 W -3 o 2 r 's s t c e r d o s y s a b r r n ed s, '. Year and month. Average j Rela- Average Rcla- i Average Rela- Average Rela- Average Relaprice per ! Live price per tive | price per tive price per tive price per price per tive "pound. | price. pound. price. ton. price. pound. price, long ton. pound. price. .Inly, 1914 $0.2150 | SO. 3050 10S j$19.0000 74 SO. 0113 SO. 6500 84 February, 1915... .1650 I 19.5000 76 .0110 . 6200 SO February, 1916... .2250 I 102 *"".*3256' 115 33.5000 130 . 0225 .8800 115 February, 1917... .3200 i 149 . 5S00 206 ! 610000 252 .0438 1.2500 161 February, 1918... ! .5536 ! 250 . 4900 174 !-47.5000 184 .0325 2.0071 258 July, 1918 j .6412 ! 290 .4900 174 i 47.5000 184 . 0325 2.1500 277 August, 1918 . 6400 ;• 289 .4900 174 ; 47.5000 184 . 0325 2.1500 277 September, 1918. i .Gioo ; 276 .4900 174 ; 47.5000 1S4 . 0325 2.1500 277 October, 1918.... i .6100 | 276 . 4900 174 ! 47.5000 184 . 0325 2.1500 277 November, 1918.. | .5927 ! 26S .4900 174 I 47.5000 184 . 0325 2.1500 277 December, 1918.. j .5500 249 .4900 174 ; 45.1000 175 . 0310 2.0000 257 January, 1919 I .5000 226 .4900 174 i 43.5000 169 .0300 1. 7500 225 February, 1919... i .4200 190 .4900 174; 43.5000 169 .0300 1.7000 219 ! Flour, wheat, Beef carcass, standard patents Sugar, pranugood native Coffee, Rio No. 7. 1914-1917, 1919, Ko latcd, steers., Chicago. 19 s 18 ta , n M da in rd n e w ap a o r. lis.! Chicago. XewY ork.' New York. Year and month. Average Kela- Average Rela- Average Relaprice DOT tivc price per tive price per tive 'pound. price. pound. price. pound. price. July, 1914 SO.1350 104 SO. 0S82 79 ?0.0420 February, 1915... .1213 94 . 0S25 74 . 0554 130 February, 1916... . 1375 106 .0825 74 . 0597 140 February, 1917... . 1413 109 . 1000 90 . 06S6 161 February, 1918... . 1750 135 . 0*33 75 . 0730 171 July, 1918 . 2400 1S5 . 0855 77 . 0735 172 August, 1918 . 2420 187 . 0X53 77 . 0735 172 September, 1918. . 2430 189 . 0959 86 . 0845 198 October, 1918.... . 2450 189 . 1040 93 . 0882 207 November, 1918.. .2450 189 . 1069 96 .0S82 207 December, 1918.. . 2450 189 . 1725 155 . 0S82 207 January, 1919 . 2450 1*9 . 1547 139 . 0882 207 February, 1919... . 2450 189 . 1544 139 207 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

376 FEDERAL RESERVE BULLETIN. APRIL 1, 1919, New York for demand paper secured by prime DISCOUNT AND INTEREST RATES. bankers7 acceptances, a type of paper which In the following tables are presented actual made its appearance in the New York market discount and interest rates prevailing in the several months ago. Quotations for new types various cities in which the several Federal Re- of paper will be added from time to time as serve Banks and their branches are located dur- deemed of interest. ing the 30-day periods ending February 15 and There have been no marked changes in rates March 15, 1919. Quotations are given for during the period under review. While there prime commercial paper, both customers' and is little indication of general increase or depurchased in the open market, interbank loans, crease in rates in any of the centers, it is rebankers' acceptances, and paper secured by ported that in certain centers there has been a prime stock exchange or other current collat- tendency toward greater firmness. Changes in eral. Separate rates are quoted for paper of rates for various types of paper likewise are not longer or shorter maturities in the first-named marked, instances of increase and decrease in and last-named classes. In addition quota- such rates being about equal in number. In tions are given for commodity paper secured by the case of prime commercial paper purchased warehouse receipts and for cattle loans, as re- in the open market there appears to be a ported from centers in which such paper is tendency for the range within which fluctuacurrent. tions occur to diminish, as is shown by decrease Quotations are also given of rates charged on in the high rates and increase in the low rates. ordinary loans to customers secured by Liberty Customary rates for such paper running 30 to bonds and certificates of indebtedness. Assist- 90 days have increased somewhat in certain ance to customers to enable them to purchase centers. A tendency may also be remarked such Government obligations has generally toward increase in the rates charged on demand been extended at lower rates, either at the rate paper secured by prime stock exchange or other borne hj such obligations or at a rate slightly current collateral. Rates for the other types of higher. The table also shows quotations in paper shown remain practically unchanged. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Discount and interest rates prevailing in various centers. DURING 30-DAY PERIOD ENDING FEB. 15, 1919. Prime commercial paper. Bankers' acceptances, Collateral loans—stock exchange or Secured by ; ; Se L c i u b r e e r d ty b y " 60 to 90 days. ! Cattle warehouse i bonds and District! City. loans. receipts, certificates etc. of indebtedness. No. 1... Boston H. L. a No. 2... New York a... 5 \ No. 3... Philadelphia.. 6" 4.} 5-5i No. 4... Cleveland 51 5 5" Pittsburgh 5 5 5 Cincinnati 6 6 G No. 5.L. R B i a c l h ti m m o o n re d 5 5 J 5 5 4 1 No. 6... Atlanta Birmingham.. Jacksonville... Now Orleans.. No. 7... Chicago Detroit No. 8... St. Louis Louisville Memphis No. 9...| Minneapolis... No. 10.. | Kansas City... Omaha Denver No.ll.J Dallas 6 El Paso 8 G 6 fi G 8 6 7 No. 12.. |San Francisco. 6 5 6 51 55-5--V G 5 5.1-54 0 5 5 S P e o a r t t t l l a e nd 8 51 6£ 5 o } i 5 5 5 G } 0 6 1 5 0 5 6 -V 6 6 6 G G 6 Spokane 7 6 6 Salt Lake City 51 5 5 6 6 6 Rates for demand paper secured by prime bankers' acceptances, high 5-1, low 4|, customary 4S-4J. CO Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Discount and interest rates prevailing in various centers—Continued. CO DURING 30-DAY PERIOD ENDING MAR. 15, 1919. OO Prime commercial paper. District City. Customers. 30 to 90 days. II.L. C. No. 1... Boston 6 5 No. 2... New York a... 6 4 5f No. 3... Philadelphia.. 6 5 No. 4 . Cleveland fi 5 Pittsburgh.... 6 51 6 Cincinnati 6 51 6 No 5 Richmond fi 5* fi Baltimore fi R1- fi No 6 Atlanta .. 7 f)1- p, Birmingham.. 8 6 6 Jacksonville... 7 6 7 New Orleans ft if ^ No. 7... Chicago 6 51-6 Detroit ft 6 No. 8... St. Louis 6 55 ? Louisville 6 51 M Li e tt m le p h R is o . ck... ( 8 \ f 5 f 1 ffii-7 No. 9... Minneapolis... 6 51 No. 10.. Kansas City... 7 5 D O e m n a v h e a r I* 5 No, 11 . Dallas 6* El Paso f8i (\ No. 12.. San Francisco. 6 5 Portland . 8 i\ Seattle 8 6 Spokane 8 6 Salt Lake City 8 6 OOOOcC 4 to 6 months. 6 ' 6 6 fi 8 6 fi 6 7 8 iOiCSO 5 5 5 ft 51 6 fi 7 f'">i•"'- 8 ? 7 6 ? fi 6 5 6 6 fi ri>- 8 fi 6 51 7 5" 6 5 8 51 fi fi" 8 C) 6 5 7 fi 8 8 8 ooo 51-6 51 fi iCiCn fi fi 6 7 fi 51-6 (j 6 6 fi fi 7 OOOOcC Open market. 30 to 90 4 to 6 days. months. 77. L. a IT. 5 6 1 5 5 51 5 6 1 51 5 51 ? fi" !- f 5}-51 51 6" 6 V- ril 51 fi fi fi 8 5* 6 51 5 51 51 51 6 5 51 5 f 5 f 6 6 0 5| 6 8 8 fi fi 6 5 5 5:1-1 fi 51,- 6 5 5' 61 8 51 5 5 oco f 6 51 6 6 6 6 8 6i o Interbank L. a IT. 5. 51 ? 5 5-1-51 5 51 6 5 5i 6 5 " 1 56 6 6 6 51 ft1- fi r>:ir^ fi fi' 6 6* 6 S* 5l 5 6 5 .51 ? 5. 6 fi 5 5} 1 5 5-15 5 ooo Tr Bankers' acceptances, Collateral loans—stock exchange or 60 to 90 days. Indorsed. Unindorsed. Demand. X. a II. L. t II. (7. L. a 5 jj 5 5 -5 1 1 4 4 4 1 1 3 - : 4A 4i' 4 4 4 V A 1 -43 6 I 51 6 41 5 a fi 5 5 «> 5 5f, f 1 4"1if 41 5* 41° 6 61 6 f 5 , 6 fi 51 s.r 6 5* fi fi ^ fi ^ f5i1 fi 41 6 fi 6 fi fi- fi 6 4 5 6 6 5 f 6 6 t 6 6 6 " f 6 G i 6 7 6 6 6 f 7 8 i 6 6 r> C 6 7 ) ? 551" 5 6 1 41 4A 4^^ 4J 4A 6 (\ % 6 5 51 6 6 G 41 6 6 ? 5 5 5 4*« 41 6 5 fi fi (\ g 8 Cy ffii-7 G 6 6 ? 4:1: 6 6 7 6 6 6™ 6 6 8 5 7 rp. 6 6 6* 6 8 5 fi 5 fi 6 G fi 6 fi 6 g fi 8 fi 6 ? ? 5 4g 6 5 fi fi (\ 6 6 6 5 41 41 5 5 5 8 6 7 6 6 5 5" 5" 6 6 6 6 8 6 oooo other currcn 3 months. IT. L. a. 6 51 51 6 4.151-5J 6 5 6 (\ 5 fi 6 51 6 61 G 6 fi fi fi fi •V- fi (S <•> fi 8 6 6 7 6 ft fi 6 f 51 Q 6 5 51 6 5 6 fi -> fi 8 fi fi-7 6 G 8 5 6 6 8 5 () fi 8 8 5 G 6 5 fi 8 g 61 6 8 6 7 8 6 O OOO CC t. 3 to 6 months. IT 6 6 G fi 6 61 (\~ C, fi 8 7 fi 6 fi 6 6 fi 8 61 6 8 ft s 8 6 6 fi « 7 7 7 COOC 00 L. 51 5 51 5 51 6 (> 51 fi 6 6 fi f 5 5 -", fi 6 5 6 5 ^ 5 ft ooo C. 51 51-6 6 fi 6 6 fi Q 6 6 7 6 6 6 6 fi -7 oooocr Secured by Secured by Liberty Cattle warehouse bonds and loans. receipts, certificates etc. of indebt- edness. II. L. C. 11. L. C. ii. L. a 5 41 4H 6 4 41-5 6 4f "41 6 6 6 6 6 6 6*6 6 6 51 51 6 6 6 5 41- 4-'v 6 6 6 6 6 6 8 6 6 8 4? ... 7 6 7 8 6 6 6 6 6 6 41 5 7 6 61-7 6 51 51 6" 4b 6'' 6 4\- 51 6 5 6 6 U 5 6 5 G 6 41 5t 8 51 6 6 51 6 51 5 5-1 8 6 7-8 8 51 6-7 8 5 6 8 fi 7 7 41 6 8 6 6 8 41 6 10 6 8 6 6 6 6 6 6 8 10 8 8 8 7 8 6 4! 6 6 4£ 6 7 6 6 6 7 8 4V 6 7 a Rates lor demand paper secured by prime bankers' acceptances, high 6, low 4J^, customary ij/- 2 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

379 APRIL 1, 1019. FEDERAL BESERYE BULLETIN". PHYSICAL VOLUME OF TRADE. ! January issue contains a description of the 1 methods employed in the compilation of the In continuation of tables in the March • data and the construction oi the accompany- FEDERAL RESERVE BULLETIN there are pre- ! ing index numbers. Additional material will sented in the following tables certain data i be presented from time to time as reliable relative to the physical volume of trade. The ; figures are obtained. Lir-c-iitovh •movements. [TlurciHi of Markets.] Receipts. Shipments. ; 1 i C O m ;> i ! l a -l f r v ie k e ? e . a ts m 0 . 0 i m Hn u j r j k s, o t C s O . P m h a e r e k p e , t 6 s. 0 ; • JT in o .u rs i. r e s s. A- f1t Total all C m a a tt r i k e e a t n s d . m I arkets. S m h a e r e k p e , t 5 s. 4 n m rn a l r f k is e , ts 4 . 4 T k o i t n al d , s a . ll '• market??. *' ... 1918. ! Head. Head. TTc.ad. 1 Head. Ucn.7_ Bend. mad. Head. Head. Head. February ; 1,490,940 4,521,455 1 082,208 • 143,820 7,238. 489 1,008,150 2749,074 907,327 137,001 4,802,152 J A n u lv g ust I i 2 2 , , 1 0 1 09 0 : .8 7 3 4 5 4 3 2 , , 1 4 1 70 3 . . 1 2 9 8 0 1 ! 2 1 5 1 8 2 5 9 , ,3 7 2 3 5 5 I ! : 8 5 0 1, , 3 1 9 2 3 2 e 6; . 0 9 8 5 01 3 2 8 4 1 4 8 0 5 0 0 5 ; . 3 8 0 0 3 0 9 84 4 9 9 , , 0 3 . 0 1 1 8 1,1 7 9 3 8 4 , . 0 5 9 3 1 9 4 7 5 6 , , 5 0 4 5 9 3 2 2 , , 3 9 9 7 5 5 , , 1 3 8 2 9 5 September I 2.799,913 2.380.475 1 3 303.955 ' 124,201 8,014 544 1.219:333 780,917 2,059,990 114,023 4,180,203 October : 2,832'. 022 3,421,041 ; 3 234,026 i 140.072 9, 03370! 1,300.084 89(5.258 2,009,057 140,845 4,400,244 November l 2.025,381 4,005,158 ! o 535,115 135'.344 fi,900 9()8 1,532,771 -.210,800 1)4-10)523 131,308 4,027,402 December 2,132,491 5,509,350 : 1 040,305 i 72,471 9.414 083 785,770 1429,251 710,100 71,243 3,002,304 1919. ! i January 2,111.704 5.801.685 1 507,013 411 9.051 413 761,168 1540,875 008,016 106,459 3,022,518 February 1440329 j 4,404,751 i 1,131,805 •I ! 38120,.526 7;059,411 528,326 1 288,134 418,827, 76,512 2,311,799 Receipts and. shipments of live stock at 15 ices tern markets. [Chicago. Kansas City, Oklahoma Citv, Omaha, St. Louis, St. Joseph, St. Paul, Sioux Citv, Cincinnati, Cleveland, Denver, Fcrt Worth, Indianapolis, Louisville, Wichita.] * RECEIPTS. [Monthly average, 1911-1913=100.] Cattle and calves. Hogs. Sheep. ! Horses and mules. Total, all kinds. Head. Relative. Head, i Relative, Head. Relative. , Head. Relotive. Head. Relative. i I 1918. "February 1,133,116 120 3,452.072 ! 108 733,895 58 ! 78,708 183 5,397,791 125 July 1,097,103 .108 2.530,414 j 115 1,141,488 84 : 30,782 80 5,405,877 117 1,588,553 158 1)970,080 ' 90 1,424,077 104 54.271 118 5,037,587 109 ^oi^i'o'Tiber 2,240,017 223 1,775,812 i 81 2)408,009 170 i 82)050 180 6,516,124 141 October 2, 207,534 225 2,570.525 : 1)7 2,357,524 173 ; 83,574 182 7,279,157 158 November 2,053,359 204 3,431)782 ! 150 1,077,537 123 04,482 140 7,227,100 156 December 1,700,945 109 4,197,313 : 191 1,114,701 82 • 30,153 79 7,055,172 156 1919. January 1,050,0-10 104 4,003,335 209 1,079.377 79 ' 56,031 123 7,395,419 160 February 1,090,118 .110 3,451,894 ! 108 774,891 61 ; 48,780 114 5,371,079 125 SHIPMENTS. 1918. ! February 300,971 | 95 849,008 188 • 200,455 00 i 201 1,548,132 116 July 495,211 i 199. 002,728 137 \ 483,151 96 ! 31,379 i 70 1,072.409 116 August. - 052,410 I 100 599,577 124 : 751.; 880 149 i 51.923 ! 127 2,055)827 143 September 932,131 j 229 488,298 101 :1,426,120 205 ! 74)473 I 182 2,921,022 197 October 994,943 j 245 486) 400 100 , 1,479,774 294 ' 84,393 i 200 3,045,570 212 November 821,831 i 227 059,432 130 ' 903,283 179 i 03,589 ! 155 2,548.135 177 Beneniber 588,425 | 145 787,401 .103 445,987 89 ! ! 37,072 ! 90 1,858)945 129 1919. ! I J F a e n b u r a u r a y ry-- j 4 5 0 8 4 0 , , 2 3 9 0 0 2 j | 1 1 4 0 5 7 9 88 8 3 8 , , 5 0 0 3 7 5 2 3 0 9 - 5 1 3 24 5 0 7 , , 8 3 1 8 l 0 \ 7 5 1 1 i i 5 47 0 , , 8 2 2 8 9 2 i i 1 12 3 5 8 1 1, , 5 0 7 9 4 1 , , 4 0 4 0 7 5 j I 1 1 1 3 8 9 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

380 FEDERAL RESERVE BULLETIN". APRIL 1, 1919. Grain and flour. [U. S. Food Administration.] GRAIN MOVEMENT. [In thousands of bushels; i. e., 000 omitted.] Wheat. Corn. Oats. Stocks at Stocks fit ; Stocks at Receipts. Shipments. close of Receipts. Shipments. close of Receipts, Shipments, close of month. month. : month. 1918. Juno 12,415 37,794 i 39,097 July 196,060 94,823 81,422 59,466 54,792 31,919 i 90,006 87,893 : 37,923 August 287,652 160,162 163,027 48,131 42,999 25,559 . 177,324 124,597 I 86,030 September. 286,200 150,636 246,690 62,137 46,453 28,522 i 126,138 102,510 | 101,739 October 241,260 150,077 286,169 59,437 47,501 25,727 : 110,620 107,693 | 103,943 November. 155,665 138,438 254,474 47,024 41,886 21,646 j 86,871 95,008 j 88,300 December.. 178,916 127,612 253,767 59,237 50,312 23,427 • 80,199 81,220 1919. January... 129,998 80,495 245,683 98.648 79,935 30,448 : 102,887 89,613 85,811 February. 60,047 51,662 j 219,306 36;663 37,601 27,365 ( 57,599 58,920 82,025 Barley. Rye. Total grains. Stocks at Stocks at | I Stocks at Receipts. '.Shipments. close of Receipts. Shipments.! close of Receipts, j Shipments.] close of month. month. I month. 1918. June 10,606 2,181 102,093 July 14,285 7,077 16,9S4 3,474 2,024 I 2,912 363,291 i 246,609 ; 171,160 August 21,340 9,923 27,174 8,422 4,449 ' «, 128 542,869 ! 342,130 307,918 September. 27,002 15,295 37,782 16,092 7,409 12,854 517,569 322,303 i 430,587 October 23,889 19,843 40,670 20,667 15,047 17,309 455,873 340,161 | 473,818 November. 22,697 21,153 39,991 17,521 13,552 19,199 329,778 310,037 423,610 December-. 23,255 22,287 40,320 15,721 8,721 25,779 357,328 290,152 ! 428,656 1919. J F a e n b u ru ar a y ry .. . . 2 1 7 6 , , 6 4 8 3 7 2 ; i 2 1 7 7 , , 1 2 3 3 0 1 3 4 8 0 , , 8 6 S 73 6 1 7 6 ^ ,0 8 8 5 6 7 I \ 1 9 0 , , 4 2 1 0 9 1 3 2 0 7 , ,9 0 6 3 6 1 178,59S | 2 1 8 7 7 4 , , 3 8 7 3 4 3 : | 3 4 9 3 5 2, , 6 5 4 4 6 8 WHEAT FLOUR PRODUCTION. [In thousands of barrels; i. e., 000 omitted.] Stocks at ; Stocks at Production. mills at close Production. mills at close of month. ; of month. 1918. .'i 1918. June 1 109 !' Tippomhar 11,759 3,260 July 6,780 ] (506 August.. 10,391 2 386 ! 1919. September 11,835 3'064 i January 12,994 3,341 October 11,752 3 422 Fpbruarv 7,736 3,544 November.. 11,175 3', 387 ! California shipments of cur us and deciduous fruits. < Total Oranges. Lemons. Total citrus fruits. j decirluovis i fruits. ! Carloads. | Relative, j Carloads. Relative. ' Carloads. I Relative, j Carloads. _..... 1018. February.. 1,035 372 i 99 , 1,407 53 , July 914 37 I 561 I 139 ; 1,475 3.753 August 767 31 1 732 j 181 : 1,499 53 : 9,126 September. 549 22 275 i 08 • 824 29 ! 5,879 October 485 20 ; 639 ! 158 1,124 39 j 7, Mo November. 1,125 46 ! 676 i 167 ' 1,801 63 I 1,044 December.. 3,585 146 i 722 , 17S • 4.2S7 150 j 267 j 1910. January... 3,120 128 ! 531 131 3,051 128 ! 109 February. 3,180 139; 658 174 3,833 144 j 198 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

APUIL 1, 1919. FEDERAL RESERVE BULLETIN. 381 Sugar. \ [Data of International Sugar Committee for ports of Boston, New York, Philadelphia, Savannah, New Orleans, Galveston, San Francisco.] [Tons of 2,240 pounds.] I Raw stocks Haw slocks Receipts. Meltings. ; at close of Receipts. Meltings. at close of month. month. 1918. 1918. July 288,449 320,908 135,001 December 92,785 [ 123,091 13,774 August 218.090 203,383 100,392 September 170,807 210,745 50/078 1919. October 242,912 207,500 77,233 January 243,800 | 197,145 00,189 November 138,141 172,528 50,989 February 389,815 i 337,420 122,757 [Data for ports of New York, Boston, Philadelphia.] [Weekly Statistical Sugar Trade Journal.] [Tons of 2,240 pounds. Monthly average 1911-1913= 100.] Receipts. V M o e i l t t i i n n c g re s . ; c R lo a s w o o st I o m c o k n s t a h t . 1 | Receipts. Meltings. c R lo a s w e o st f o m ck o s n a th t . i i Tons. R ti e v l e a . - Tons. R ti e v l e a . - | i Tions- R ti e v l e a . - ! Tons. R ti e v l e a . - Tons. R ti e v l e a . - Tons. R ti e v l e a . - ....... ....i ! i 1918. 1918. February 179,708 105 188,000 110 j 3L2G2 18 November 139,343 70 139,000 76 43,112 25 i December 58,751 32 92,000 50 11,490 7 A Ju u l g v ust 1 15 8 9 0 , , 2 2 5 2 2 5 1 8 0 7 1 2 1 2 7 1 5 , , 0 0 0 0 0 0 1 9 2 5 0 ! 1 3 5 9 5 , , 3 3 7 2 5 2 I 32 ! 1919. September 145,555 79 139,000 70 j 40,809 January 172,054 93 147,000 80 30,544 21 October 151,703 82 150,000 85 i 42,522 February 2S3,172 105 229,000 134 90,710 53 2o ••; Lumber. [From reports of manufacturers' associations.] [M feet.] Southern pine. "Western pine. Douglas fir. Eastern white pine. j North Carolina pine. No. Produc- Ship- *> ! Produc- Ship- ~Lf- j Produc-1 Ship- | Produc-! Ship- Produc-1 Shipm o il f ls. tion. ments. ing.! ttan- ments. mills. tion- ! ments- mills. tion. i monts. mills. tion. ments. —i- 1918. February 187 383,954 3S4,923 24,45 73,147 00,603 j 131 302,400 1 208,500 26 | 21,365 27,306 j 20 19,299 j 14,605 July 201 412,002 453,786 42,45 147,533 112,915 123 209,100 2GG.300 26 ' 80,658 59,412 31,517 34,815 August 202 391,048 437,770 4.4,47 151,150 109,402 130 292,200 275,000 26 ! 95,942 5511,332277 24,118 I 34,377 September 190 340,009 350,028 45 130,029 ,59 i 100 310,000 248,000 26 72,937 j 3388,771111 31,908 I 34,903 October 202 321,214 353,206 42,47 121,850 79;701 I 115350,487 324,080 27,21 32,787 ; 20,152 27,912 !36,478 November 194 312,126 353,810 38,46 90,078 74,103 ; 121201,189 240,986 16 ! 23.529 ! 23,828 32,596 36,012 December 204 310,008 322,831 27,46 (53,315 03,823 ! 127222,389 1 221,720 11 ! '799 j 14,176 26,728 I 21,570 |I i i i 1919. January 200 330,137 325,241 21,49 40,354 08,910 I 122 225,088 1 227,129 13 . 7,565 i 15,172 I 23,869 February 195 328,009 309.494 24,48 46,037 71,103 i 122 ! 228,031 I 238,035 15 j 6,802 ! 17,081 ! 28,629 |18,034 25,806 ! RECEIPTS AND SHIPMENTS OF LUMBER AT CHICAGO. [Chicago Board of Trade.] [Monthly average 1911-1913= 100.1 Receipts. Shipments. Receipts. Shipments. Rela- Rela- ! Rela- Rela- M feet. tive. M feet. tive. M feet. tive. M feet. tive. 1918. 1918. I February 133,436 07 GO, 255 84 November I 142,230 72,723 95 December i 103,908 GO,831 79 July 243,598 115 98,145 128 August 208,963 78,707 103 1919. i September 171,515 08,133 89 January ! 134,004 47,922 62 October 130,503 70,590 February | 97,511 45,585 64 I Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

882 FEDERAL RESERVE BULLETIN. APRIL 1, 1919. Coal and coke. [Bituminous COPJ and coke, U. S. Geological Survey; anthracite coal, Anthracite Bureau of Information.! [Monthly average 1911-1013=100.] Coke, estimated monthly production. Bituminous coal, esti- Anthracite coal, mated monthly pro- shipments over 9 duction. roads. Beehive. By-product. Total. Short tons. Relative, j Long tons. Relative, j Short tons. Relative. | Short tons. Relative. | Short tons. Relative. 1918. February 44,384,937 128 ! 5,812,082 111 j 2,234,281 92 1.502,056 190 | 3,796,337 110 I July 55,387,312 126 2,81.3,910 108 2,300,673 201 5.114,583 146 August 55,732,092 150 ! 7,084,775 128 2,057,072 102 2,387,075 271 5)044,747 144 September 51,757,334 150 i 7,180.923 111 2,570,238 98 2,410,798 274 4,981,030 143 October 52,885,813 140 ! 0.234', 395 112 2,011,885 100 2,503)183 291 5.175,008 148 November 44,386.987 143 i 0) 280,306 94 2,339,197 89 2,523,740 287 4i862)943 139 December 40,634'. 525 120 | 5.270.059 102 2,255,290 8G 2,502,048 291 4,817,344 138 110 ; 5', 730', 200 1919. January 41.473,000 112 5,934,241 105 2.401,507 92 2,441,433 277 4,843,000 139 February 31; 492'. 500 91 3.871)932 | 74 1)822)894 Movement of crude petroleum in United States. [U. S. Geological Survey.] [Barrels of 42 gallons each.l I Stocks at Stocks at Marketed. i end of Marketed. end of i month. month. Barrels. I Relativ Barrels. Barrels. Relative Barrels. 1918. ; \ 1918. February j 25,753,000 j 134 148,129,000 | November. 28,347,000 148 131,295,000 July I 30,301,000 j 158 141,475,000 ! December.. 28,071,000 146 128,311,000 August 29,211,000 152 139.472,000 September 28,074,000 150 135.080,000 1919. October ! 30)592,000 i 100 134)838,000 January 29,869,000 156 129,558,000 ! i February 19,041,000 96,239,000 Total output of oil refineries in United States. [Bureau of Mines.] Crude oil run Gasoline Kerosene Gas and fuel Lubricating (barrels). (gallons). (gallons). (gallons). (gallons). 1918. February 23,380,070 234,324,019 I 121,218,320 510,105,397 58,300,914 I July 29,170,718 332,022,095 150,828,820 058,439,082 79,303,107 August 28,534,275 330,335,040 149,078,850 071,113,871 72,892,879 September. 28,300,431 314,595,959 104,903,798 053,085,050 70,593,079 October 29,237,707 314,251,318 104,928,040 001,780,441 72,244,633 November. 27.411,030 312,968,040 109,278,105 604,403,494 72,178,602 December.. 20,958,157 291,744,465 101,742,713 587,873,987 64,987,842 1919. January., 20,907.332 j 303,710,556 j 158,501,200 589,630,050 68.304,613 Slocks at the dose of month. 191S. Feb. 28.. 11,033,411 | 518,794,G09 411,150,157 502,040,087 150,259,653 July 31.. 14,020,525 !349,928.004 432,807,129 519,012.839 136,460,207 Aug. 31.. 13,940,595 j235,446,538 424,281,4S1 500, OK)'. 413 137,490,980 Sept. 30. 14.402,100 I 209,772,723 430,028,907 583)407,709 147,425,556 Oct. 31.. 15'. 438.570 I250)328.309 419,409,944 590,116,351 135,196,542' Nov. 30.. 15', 222) 401 270,072)011 397,804,012 583,777,918 132.923,478 Dec. 31.. 15,749,771 297,320,983 380,117,829 059,001,357 138)853,574 1919. Jan. 31. 15,380,185 383,212,692 332,393,181 :6,411,414 158,370,431 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

APKIL 1, 1919. FEDERAL RESERVE BULLETIN. 383 Iron and steel, [Pig iron production, Iron Age; steel ingot production, American Iron and Steel Institute.] [Monthly average, 1911-1913=100; iron ore, monthly average, May-Nov., 1911-1913=100.] Unfilled orders U. S. Pig iron production, i Steel ingot production. Steel Corporation at close of month. Gross tons. .Relative, i Gross tons, i Relative. Gross tons. Relative. 191S. February... 9,288,453 ; 170 July 3,420,988 3,113, (.35 8,883,801 i 109 August 3,389,585 3,083,080 8,759,042 | 166 September.. 3.41S,270 3,197,058 8,297.905 i 157 October 3,480,941 3.352,190 8,353;293 i 158 November.. 3.35-1,074 3;000,154 8,12.1,003 ! 154 December.. 3)433,617 2,992,300 7,379,152 | 140 1919. | January.., 3,302,200 127 February., 2,940,108 00,,001804,,728078 i! 114 Imports of 'pig tin. [Department of Commerce.] [Monthly average, 1911-1913=100.] Pounds, j Relative, ij Pounds. Relative. 1918. 191.8. February... 7,584,403 89 November. 10,734,179 118 m December.. 5,887,003 05 July 15,507,007 j August 10,317,437 j 180 1919. September.. 10, ()30.000 ! 117 January 8,401, 444 93 October 9,885,984 109 February 0,271,977 74 Textiles. [Silk, Department ol Commerce; cotton, "Bureau of the Census: wool, Bureau of Markets; idle machinery, Jan.-Sept., 1918, inclusive , National Association of AVool Manufacturers.] [Cotton, monthly average crop years 1912-1914=100: silk, monthly average 1911-1913=100.] Percentage of idle woolen machinery on first of month to total reported. Cotton consump- Imports of raw silk. tion. Cotton spindles "Wool con- Looms. Spinning spindles. active sumption during (pounds). month. Wider Under cards, Bales. Relative. than 50- 50-inch "Woolon. Pounds. ! Relative. inch reed reed space. space. 1918. February.. 510,084 33,502,222 52,890,535 j S.I S.4 5.1 | 7.9 4.9 11.6 1,000,620 84 i July 541,792 120 33,074,890 50,951,651 10.4 10.2 5.9 ' 10.5 | <>. 5 13.2 1,997,314 98 August 531,914 119 33,040,811 51:510,457 12.2 14.3 6.0 i 10.2 ' 0.0 15.3 3,813,595 186 September 490,779 109 33,524,275 47,648,413 13. 8 15.1 7.0 i 13.2 I 20. 2 3,973,754 194 October 440)833 98 32,700,023 48,092,509 18.3 24.3 9.3 ! 12.5 j 8.'8 18.8 2,814,270 138 November 157,370 102 33,121,507 3S,282.723 21.1 26. 8 11.1 i 23.8 i 11.9 30.1 2,330,345 114 December 472,941 105 33,052,012 32,355' 081 22.5 24.9 13.8 ! 17.8 i 16.1 27.4 2,080,863 131 1919. i | January 556,721 124 33,850,472 32,573,970 40.3 32.6 32.2 ' 30.7 I 30. 5 37.5 1,461,827 71 February.., 433,516 103 33,282,593 23,180,818 52.3 41. 5 38.7 ! 39.8 i 41.1 48.6 1,742,812 91 March 58.1 42.4 39.1 i 47.8 i 41.8 52.7 NOTEE..—Figures of idle wool machinery for Nov. 1 and Dec. 1 are not entirely comparable with previous figures, due to fact that later figures are for numbl>tor of machines running on single shift, while earlier figures count as two a machine running double time. The ellect is, however, small. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

384 FEDERAL RESERVE BULLETIN. APRIL 1,1919. Production of wood pulp and paper. [Federal Trade Commission.] [Net tons.] W pu o l o p d , i | p N r e in w t s . Book. b P o a a p r e d r . W pi r n a g p . - Fine. W pu o l o p d . p N r e i w nt s . Book. b P o a a p r e d r . W pi r n a g p . - Fino. 1918. 1918. July 103,348 69,458 177,931 70,526 34,609 December. 273,973 107,129 64,501 134,103 51,947 29,975 August 262,377 113,826 76,439 192,810 71,249 36,910 September... 246,741 ! 99,528 66,581 168,384 61,390 37,833 1919. October 237,624 I 88,155 60,743 143,373 56,903 28,533 January... 283,270 116,289 73,809 142,764 52,226 29,407 November... 270,849 ! 97,693 67,262 152,321 61,681 33,429 February.. 238,228 106,159 61,673 127,917 44,524 23,995 Tax-paid manufactured tobacco products in the United States (excluding Porto Rico and Philippine Islands.) [Commissioner of Internal Revenue.] Cigars. Cigarettes. Cigars. Cigarettes. I Chewing |! I Chewing andsmok- || j an(j gjnojj. Large. Small. Small. ing tobacco, ij Large. Small. Small. ! inS tobacco. 1918. Number. Number. • Number. Pounds. \ 1918. Number. Number. , Number, j Pounds. February 555,137,877 66,306,271 12,716,702,135 35,520,128 | November.. 537,794,904 63,177,200 2,986,775,643 j 32,618,009 December.. - 527,586,098 59,139,250 2,788,379,210 ' 25,276,695 July 634,609,533 79,237,849 '3,796,878,822 36,607,578 ! August 624,491,239 | 60,880,910 j 3,442,446,234 40,764,853 ! 1919. September 585,400,449 j 60,556,000 13,403,205,736 37,803,818 | January i 518,700,482 ! 72,458,974 3,079,212,253 ! 29,308,616 October 594,764,527 I 63,111,160 3,027,300,975 39,440,893 j; February Output of locomotives and cars. [Locomotives, United States Railroad Administration; cars, Railway Car Manufacturers' Association.] Locomotives. Output of cars. Locomotives. Output of cars. D sh o i m pp e e st d i . c ! | Do ti m c. es- Foreign. ! Total. D sh o i m pp e e s d ti . c F p o c le o re t m e ig d - n . Domes- Foreign. Total. j 1918. Number. \ Number. Number. Number. • Number. 1918. Number. Number. Number. I Number. Number. February.... 5,944 3,010 | 8,954 November. 224 252 6,743 | 2,330 «,093 December.. 281 177 7,876 j 3,402 11,278 July 3,312 4,410 I 7,722 August 214 77 2,437 4,847 i 7,284 1919. September., 267 213 3,564 j 6,230 January.... 282 84 | 8,172 I 3,635 11,807 October 295 313 2,6S1 ! 7,236 February.. 135 164 ! 6,623 i 4,657 11,280 Vessels built in United States, including those for foreign nations, and officially numbered by the Bureau of Navigation. [Monthly average 1911-1913=100.] Gross Gross Number. tonnage. i Relative. Number. tonnage. Relative. 1918. 1918, February S4 j 117,601 j 521 November 171 357,660 1,480 December 153 283,359 1,173 July 193 j 220,931 ! 951 August 177 i 295,349 | 1,222 1919, September 170 i 308,470 I 1,276 January 132 264,346 1,094 October 202 ! 357,532 ! 1,479 February 135 271,430 1,203 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

385 APBILI, 1919. FEDERAL RESERVE BULLETIN. Tonnage of vessels cleared in the foreign trade. [Department of Commerce.] [Monthly average 1911-1913=100.] Net tonnage. Per- Net tonnage. Percentage centage of Rela- of Rela- American.; Foreign. Total. JRR tiv eell e ;a . - A c to a m n ta e t l r o . i- tive. American. Foreign. Total. t R iv el e a . - ! A c t a o m n ta e t l r o . i- tive. 1918. 1918. February.. 757,141 | 1,511,845 2,268,986 63 I 33.4 132. November. 1,770,935 1,991,725 3,762,660 97 ! 47.1 186 December.. 1,141,319 2,053,517 3,194,836 35.7 141 July 2,093,310 ! 2,941,171 5,034,481 129 41.6 164 August 2,332,577 ! 2.808,466 5,141,013 132 45.4 179 1919. September.. 2,009,194 j 2; 290,872 4,300,066 111 46.7 185 January 1,166,391 1,896,123 3,062,514 I 78 I 38.1 151 October 1,875,947 I 2,163,383 4,039,330 104 46.4 184 I February.. 1,262,487 1,671,070 2,933,557 j 75 j 43-0 170 Net ton-miles, revenue and nonrevenue. [United States Railroad Administration.] 1918. •; 1918. February | 29,217,552,000 I November 35,533,026,000 December 33,659,507,000 July j 38,761,291,000 August | 38,469,847,000 '• 2919. Seotember ; 38,592,137,000 January 30,383,169,000 October \ 39,548,562,000 February 25,681,943,000 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

386 FEDERAL, BESERVE BULLETIN. APRIL 1, 1919. NUMBER OF DISCOUNTING MEMBER BANKS. (See diagram on p. 387.) Between January 1, 1917, and the end of maximum. On the whole the number of bor- February, 1919, the number of member banks rowing institutions has been steadily increasing of the Federal Reserve System increased from during the entire war period, recessions in these 7,624 to 8,748, while the number of member totals being relatively slight. The largest debanks accommodated through the discount of creases in the number of borrowing institutions paper rose from 309 in January, 1917, to 3,091 are shown for January, 1918, in the interval in February of the present year. The first between war finance operations in connection large increase from 590 to 900 in the number of with the second and the third loans, and for borrowing members is shown for the month of December, 1918, the month following the con- June, 1917, when the first Liberty loan was clusion of the armistice. placed. In November, when the first install- Hand in hand with the increase in the numment of the second war loan fell due, the number of discounting institutions goes the inber of borrowers increased to 1,574. In May, crease in the amount of discounted paper car- 1918, when 20 per cent of subscriptions of the ried for their members by the Federal Reserve third loan were payable, the number of bor- Banks. Reductions in loans are shown for rowing members was 2,793, increasing gradu- July and August, 1917, following the placing ally to 3,671 in August, the largest number shown, and over 43 per cent of the total mem- of the first war loan, in February, 1918, in the bership reported at the close of that month. interval between the second and third loans, The financing of the fourth loan and its con- and in the two months following the armistice summation in October, 1918, apparently did declaration. The largest average monthly not add to this number, though the November i amount of discounts held, $1,768,745,862, is total of 3,667 nearly approaches the August Ishown for November, 1918. | Number of member banks ac- Number of member banks ini coinmodated each month Average amount of discounted paper held during system at end of month. I through discount of paper. month. Months. 1917 1918 1919 1917 j 1918 1919 1917 1918 1919 January 7.624 ! 978 I 8,713 j 309 1,432 3,316 §20,876,802 S611,235,224 SI,734,600,017 February 7.625 j 031 I 8,748 262 1,353 3,091 17,900,040 531,,554411,333333 1,763', ,226,458 March 7,625 : 083 315 1,568 18,190,709 567,,474,932 , April 7,634 ,149 ! I 381 2,100 24,902,567 769,,259,187 ! May 7,651 105 ! i 590 2,793 42,710,392 902,,101,974 i June 7,657 218 I i 900 3,021 151,233,725 938,,441,907 | July 7,681 323 ! j 960 j 3,462 147,797,115 1,116655,649,422 j August 7,733 453 i ! 990 I 3,671 134,987,615 ,, 701,494 September 7,748 533 i i 953 3,464 182,439,407 1,337,152,988 October 7,783 617 j 1,140 3,610 313,771,389 1,603,766,375 November 7,846 668 | 1,574 3,667 568,352,241 1,709,745,862 December 7,882 711 i 1,701 3,288 664,153,799 1 1 , , 7 7 6 49 8 , ,155,925 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

00 CO TOTAL NUMBER OF MEMBER BANKS AND NUMBER OF MEMBERS DISCOUNTING. ALSO AVERAGE DISCOUNTS p HELD BY ALL ER.BANKS DURING EACH MONTH, 1917-1919. il 1? Chrpe I: Member of Jternbet-JBarif® at end ofeajch,?non£;h. Czirpe Z.Mmderof'Member j&mfo*Sksamn£cM during eacfvmonths. Carve 3: Jfveragejf7ri0un£c^!Di$€0ii?i£s ]tel& 2000tarn JOOOOEGOO 1900 ieoo 1600sooo 3000 MOO 1700 1700 1600§00) —i SOOO1600 ISOO ISOO PQ / 14007000 7000 1400 1300 / 1300 PS 12006000 / 0000 1200 f / noo JIOO ( sooo *-* sooo/ooo 1000 g 900 / SOO 600 4000 d/YY) 800 f / eriAAs 700 K p*—< 700 / ymmmm4 600 3000 3000 600 t SOO V ) SOO / 400 2000 s A 2000 400 s \ 300 300 / Pi 200 1000 / 1000 ZOO 100 100 < / o 0 0 Q . \4t 1 % 11II § § MU 1111111S1 § U .1917 L2L8 13J9. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

388 FEDERAL BESERVE BULLETIN. APRIIi 1, 1919. DISCOUNT AND OPEN-MARKET OPERA- $1,601,128,000 on the last Friday in January, TIONS OF THE FEDERAL RESERVE and $509,534,000 on the corresponding date BANKS. in 1918. Of the total discounts held the share of war paper was 88.7 per cent, compared with For the month of February discount opera- 84.8 the month before and 52.8 per cent about tions of the Federal Reserve Banks totaled a year previous. For the three eastern banks $4,980,935,514, compared with $5,994,382,265 and Chicago this share was in excess of 90 per for January and $762,439,698 for the month of cent, while for the Kansas City and Dallas February of the past year. Nearly the entire banks the proportion was below 50 per cent. decrease since January is due to the reduction Holdings of live-stock paper totaled $31,in the amount of war paper discounted, 345,000, compared with $28,710,000 on the especially by the New York Federal Reserve last Friday in January, practically the entire Bank. Of the total discounts for the month amount being reported by the Kansas City, under review the share of war paper was 95.2 Dallas, and San Francisco banks. Agricultural per cent, or only slightly less than the month paper on hand totaled $32,572,000, of. which before, compared with 52 per cent shown for over 55 per cent was the share of the Chicago February, 1918. About 54 per cent of the and Dallas banks. total discounts and of the discounts of war During the month under review the memberpaper are reported by the New York bank. ship increased from 8,713 to 8,748 banks. The With the exception of Dallas and San Frannumber of discounting members declined from cisco all Federal Reserve Banks show smaller 3,316 to 3,091, largely in the Boston, Chicago, discount operations than during the first month and Minneapolis districts, as may be seen from of the year. the following exhibit giving the number of Other discounts for the month comprise member banks at the end of the last two months $24,299,755 of member banks' notes secured as well as the number of banks discounting by eligible paper, $8,879,930 of trade acceptduring these two months: ances based largely upon domestic trade transactions, also $737,420 of bankers7 acceptances. Number of member Number oi" member Over 97 per cent of the total discounts for banks in district. b d a a n te k d s . accommo- Federal Reserve Bank. the month was composed of 15-day paper, i. e., bills maturing within 15 days from date Jan. 31. | Feb. 28. January. February. of discount with the Federal Reserve Bank. Boston 424 423 191 152 The average maturity of the paper for the sys- New York 724 722 395 403 Philadelphia 663 663 351 322 tem works out at 10.71 days, compared with Cleveland 817 821 153 143 Richmond 066 568 242 266 10.34 days the month before. All the banks Atlanta 425 427 245 236 Chicago 1,338 1,353 416 301 except Kansas City and Dallas—which report St.. Louis 511 512 176 167 Minneapolis 868 873 168 128 among their total discounts relatively large K Da a l n la sa s s City 9 7 9 3 4 3 9 7 9 3 6 7 3 4 3 1 4 9 3 4 1 0 3 3 amounts of 6-month paper—show average ma- San Francisco 650 653 226 257 turities below 20 days, and New York and Total 8,713 8,748 3,316 3.091 Philadelphia average maturities below 10 days. Owing to the large preponderance of war paper Bills bought during February in open market, discounted at the preferential rate the average either directly or through the intermediary of rate of discount for the month was 4.15 per the New York bank, totaled $147,410,093. By cent, compared with 4.18 per cent for January. far the larger portion of this paper, viz,%$143,- On the last Friday of the month the Federal 135,749, was composed of bankers7 acceptances. Reserve Banks held a record total of $1,879,- Of the smaller total, $81,258,204 represented 820,000 of all classes of discounts, as against bankers' bills based upon foreign trade trans- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

APRIL 1, 1919. FEDERAL RESERVE BULLETIN". 389 actions, and $61,877,545 like bills based upon from 4 to 4£ per cent, the average on a 365 domestic trade transactions. Trade accept- days' basis working out at 4.23 per cent. ances bought in open market by three banks Holdings of bankers' acceptances by the totaled $2,805,364, of which $2,255,982 repre- Federal Reserve Banks declined from sented trade acceptances based upon foreign $275,683,000 on the last Friday in January to trade transactions. In addition a total of $271,488,000 on the last Friday in February. $1,468,980 of finance bills was bought during Holdings of trade acceptances originally purthe month. The average maturity of all bills chased in the open market likewise show a bought works out at 44.85 days, ranging be- decline for the month from $5,610,000 to tween 33.29 days for bills bought by the $4,421,000. The average rate of earnings Boston bank and 73.56 days for bills bought from all classes of acceptances for the month by the Atlanta bank. About 92 per cent of February was 4.25 per cent, compared with of the total amount was purchased at rates 3.79 per cent for February, 1918. Total investment operations of each Federal Reserve Bank during iheinonths of February, 1919 and 1918. United States securities. Total investment operations. Feder B a a l n R k e . serve c m o B u e i n l m l t s e b d d e i r s f s o - . r b m ou o B a p g r il e k h l n t e s t i . n p M r a a l u n n w t i s c a . i r - - \ j b 3& c o e n n p d t e - s r . bonds. j b 4 c o 1 e - n p n d e t s r , i I U i c n e n d r i t e t i e b f d i t c e S a d t t n e a e s t e s o s s f . Total. Feb 19 r 1 u 9. ary, Feb 19 r 1 u 8. ary, I I Boston §355,740,459 820, ,341,094 $3,000,000! §3,000,000 8379,081,553 $76,830,912 New York 2,667,770,967 56,351,764 317 375,5001 317,375,500 3,041,498,231 808,039,215 Philadelphia 640,608,351 1,541,652 000,000i 1,000,000 643,150,003 42,052,051 Cleveland 197,596,593 13,278,112 1,550,000, 1,550,000 212,424,705 110,832,074 Richmond 276,675,719 2,502,650 76,0001 76,000 279,254,369 126,376,985 Atlanta 108,716,487 1,817,889 $146,000 1,000,000 1,146,000 111,680,376 22,425,412 Chicago 263,047,705 13,573,765 276,621,470 138,201,608 St. Louis 115,577,865 11.345,794 ,000,000 127,923,659 34,016,112 Minneapolis 12,489,980 4,563,902 994,000 18,047,882 14,008,540 Kansas City 87,500,062 3,190,558 100 166,000 90,856,720 21,669,881 Dallas 92,411,695 943,000 93,354,695 12,652,185 San Francisco 162,799,631 17,959,913j ioo 165,500 180,925,144 36,690,078 Total, February, 1919 4,980,935,514147,410,093' 146,200 326,327,000 326,473,2 5,454,818,807 Total, Febru- J< ary, 1918 762,444,698148,275,106 S136,549 SI, 679,300 S13,067,400 518,192,000 532,938,700 1,443,795,053 Total 2 months ending Feb. 28,1919 10,975,317,779 348,901,799 1,000 1,000),,0000001| 160,375 1,154,774,000 1,155,934,375 12,480,153,953 Total 2 months ending Feb. 28,1918 l,630,674,317 278,894:615J1,392,512 2,773,400| 26,310,938 11,549,214,000 1,058,818,338 J 2,969,779,782 I i Includes 8520,000 of one-year Treasury notes. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

390 FEDERAL RESERVE BULLETIN. APRIL 1,1919. Average amount of earning assets held by each Federal Reserve Bank during February, 1919, earnings from each class of earning assets and annual rates of earnings on basis of February, 1919, returns. Average balances for the month of the several classes of earning Federal Reserve Bank. Discounted Purchased United States Municipal bills. bills. securities. warrants. Total. Boston ' 8142,420,149 813,460,610 $10,989,464 $166,870,223 New York 734,456,855 54,309,086 65,724,780 854,490,721 Philadelphia 185,697,842 2,232,553 12,631,829 200,562,224 Cleveland 98,136,063 60,381,053 12,431,432 170,948,548 Richmond 91,829,939 7,458,218 6,557,628 105,845,785 Atlanta 74,524,548 8,873,346 7,443,912 54,000 90,845,806 Chicago 158,132,792 32,728,217 21,589,357 212,450,366 St. Louis ! 51,105,261 13,625,847 8,453,543 73,184,651 Minneapolis | 18,848,000 28,660,000 9,392,000 56,900,000 Kansas City 68,737,839 12,780,194 14,294,287 95,812,320 Dallas 51,646,075 2,396,607 8,172,842 62,216,124 San Francisco 87,690,495 39,181,750 8,690,771 135,563,016 Total, February, 1919 il, 763,226,458 ! 276,087,481 186,371,845 4,000 2,225,689,784 Total, February, 1918 I 531,541,333 | 289,071,546 180,516,005 824,723 1,001,953,607 Earnings from— Calculated annual rates of earnings from— Federal Reserve Bank. Dis- Pur- United Munici- Dis- Pur- United Municicounted, chased States se- pal war- Total. counted chased States se- pal war- Total. bills. bills. ! curities. rants. bills. bills. curities. rants. Per cent. Per cent. Per cent. Per cent. Per cent. Boston $446,162 842,396 $17,297 $505,855 4.08 4.11 2.05 3.95 New York 12,277,507 175,003 121,784 2,574,294 4.04 4.20 2.41 3.09 Philadelphia | 584,112 7,279 21,433 612,824 4.10 4.25 2.21 3.98 Cleveland j 314,467 196,025 21,530 532,022 4.18 4.23 2.26 4.06 Richmond j 297,061 20,562 i 10,265 333,888 4.22 4.64 2.04 4.11 Atlanta I 240,958 31,019 11,521 815 283,513 4.22 4.56 2.02 4.94 4.07 Chicago j 521,476 107,943 37,689 667,108 4.28 4.30 2.28 4.09 St. Louis ! 162,571 43,449 13,827 219,847 4.15 4.16 2.13 3.92 Minneapolis j 64,226 92,200 21,895 178,321 4.44 4.19 3.04 4.08 Kansas City ! 251,179 43,143 24,290 318,612 4.76 4,40 2.22 4.33 D Sa a n ll a F s r ancis 4 c o 1 3 8 0 8 5 , , 0 1 6 3 2 8 12 8 0 , , 6 0 5 1 1 8 1 1 5 4 , , 0 3 2 3 8 2 2 44 1 6 1 , , 1 0 8 4 4 5 i 4 4 . . 7 5 4 4 4 4 . . 1 7 9 0 2 2 . . 2 2 8 5 4 4. . 2 4 9 2 Total, February, 1919 5,652,919 899,688 330,891 15 6,883,513 4.18 4.25 2.31 4.94 4.03 Total, February, 1918 II, 638,446 841,259 449,846 2,362 2,931,913 4.02 3.79 3.25 3.73 3.81 Bills discounted for member banks during the month of February, 1919, distributed by classes; also average rates and matu rities of bills discounted by each Federal Reserve Bank. Member banks' collateral Customers notes. Federal Reserve Bank. m p c G u a e o p r n e v e t d r e w r s b n e a y - - r G S o ec v u e r r e n d m b e y nt Otherwise Trade ac- B a a a c n n c c k e e e p s r t . - s3 d A is ll c o o u th n e ts r . Total. m i A n a v t d e u a r r a y i g s t e y . b r A a a t s v d e i e s a ( r ) y 3 a 6 p g 5 e e - r obligations. war obliga- secured. cent. tions. Boston $31,255,392 $304,998,300 813,182,000 1 $1,211,748 $81,215 $5,011,804 8355,740,459 12.44 4.13 New York 36,894,814 2,518,274,955 2 3,907,288 267,840 108,426,070 2,667,770,967 8.68 4.03 Philadelphia... 20,450,724 596,245,257 113,663 23,798,707 640,608,351 8.46 4.08 Cleveland 7,484,120 181,619,800 693,731 7,798,942 197,596,593 14.84 4.13 Richmond 5,858,837 264,232,811 7,500 56S,851 6,007,720 276,675,719 10.75 4.28 Atlanta 1,138,803 99,313,600 65,000 371,794 7,827,290 108,716,487 17.15 4.18 Chicago 2,782,685 246,929,273 1,849,670 237,317 11,248,760 263,047,705 15.95 4.14 St. Louis 966,087 107,401,737 370,525 381,000 6,458,516 115,577,865 13.42 4.15 Minneapolis 42,031 11,986,700 5,000 9,631 446,618 12,489,980 17.09 4.28 Kansas City.... 2,220,993 66,605,343 8,527.585 540,233 9,605,908 87,500,062 22.26 4.68 Dallas 533,504 79,109,964 663;000 145,391 11,959,836 92,411,695 23.07 4.52 San Francisco., 2,199,766 150.389,070 709,758 ""7,"365' 9,493,672 162,799,631 15.74 4.50 Total February, 1919 Ill, 827,756 14,627,106,810 24,299,755 8,879,930 737,420 208,083,843 14,980,935.514 10.71 4.15 Total January, 1919 192,141,173 15,519,031,646 20,114,004 10,903,033 1,577,514 250,614,895 |5,994,382,265 10.34 4.18 1 Includes $928,23.5 in the foreign trade. 2 Includes $845,553 in the foreign trade. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

APKIL 1,1919. FEDERAL RESERVE BULLETIN. 391 Bankers and trade acceptances in the foreign and domestic trade and finance bills purchased during February, 1919; also average rates and maturities of total bills purchased by each Federal Reserve Bank. Bankers' acceptances. Trade acceptances. Average Finance Total pur- Average j Federal Reserve Bank. In the In the for- Mils. chased bills. Total. domestic eign trade. Total. trade. Boston $7,412,034 .§12,929,060 -120,341,094 $20,341,094 33.29 ! 4.17 New York 21,915,888i 32,470,077 54,385,965 §492,853 $810,659 $1,303,512 $662,287 56,351,764 36.58 I 4.18 Philadelphia... 579,770I 861,882 1,441,652 100,000 1,541,652 33.88 I 4.13 Cleveland 6,273,559 6,422,126 12,695,685 56,529 375,898 432,427 150,000 13,278,112 51.93 i 4.22 Richmond 1,503,650 999,000 2,502,650 2,502,650 65.48 4.56 Atlanta 1,684,667 133,222 1,817,889 1,817,889 73.56 4.56 Chicago 7,962,194 5,560,586 13,522,780 50,985 13,573,765 58.39 4.26 St. Louis 5,438,242 5,431,844 I 10,870,086 475,708 11,345,794 48.63 4.21 Minneapolis 1,689.682 2,874,2201 4,563,902 4,563,902 57.56 4.21 Kansas City... 925,642 2,264,916 3,190,558 3,190,558 53.01 4.19 Dallas 200,000 743,000 943,000 943,000 62.80 4.67 San Francisco. 6,292,217 10,568,271 16,860,488 1,069,425 | 1,069,425 30,000 17,959,913 54.71 4.29 Total i 61,877,545 81,258,204 |143,135,749 519,382 2,255,982 2,805,364 147,410,093 44.85 4.23 Discounted bills, including member banks1 collateral notes, held by each Federal Reserve Bank on the last Friday in February, 1919, distributed by classes. [In thousands of dollars; i. e., 000 omitted.! Member banks' col- Customers' lateral notes. Federal Reserve Bank. A p t g a u r p r i a c e u l r. l- Li p v a e- p s e t r o . ck m c p G u a e r o p n e v e t d r e w r b s n e a y - - r Se G c o u v re e d rn b - y Otherwise c T e r p a t d an e c a e c s - . B a a a c n n c c k e e p e s t r . - s' d A is ll c o o u th n e ts r . Total. obligations. ment war secured. obligations. Boston 87,400 52,441 |. 1,987 363 4,011 146,202 New York..... 159 81,229 660,750 j. 3,188 17 41,695 787,038 Philadelphia... 124 29,828 147,162 j. 343 12,614 190,071 Cleveland 19 56 10.061 91,148 I. 1,092 5,153 107,529 Richmond 3,011 3 12;354 77,282 j. 1,279 6,620 100,549 Atlanta 2,421 211 5,885 56,923 j 1,234 8,881 75,560 Chicago 9,346 7,104 155,604 I 781 1,055 4,679 178,569 St. Louis 91 133 2,156 47,126 '. 692 786 7,513 58,497 Minneapolis.... 666 610 49 15,675 j. 10 490 17,500 Kansas City.... 3,880 16,937 765 31,657 i 6,094 937 8,002 68,272 Dallas 8,785 9,130 1,239 23,143 ! 422 13,869 56,588 San Francisco.. 4,070 4,265 3,883 67,102 !. 1,583 12 12,530 93,445 Total. 32,572 31,345 241,953 1,426,013 I 7,302 13,400 1,178 126,057 1,879,820 Per cent 1.7 1.7 12.9 75.8 1 .4 .7 6.7 100.0 Total, February, 1918 3,735 17,502 146,838 122,332 : 22,337 18,678 178,112 509.53-i Per cent 0.7 3.4 28.8 24.0 ! 4.4 3.7 35.0 100.0 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

392 FEDERAL RESERVE BULLETIN. APRIL 1,1919. Acceptances purchased and held by each Federal Reserve Bank on Feb. 28,1919, distributed by classes of accepting institutions. [In thousands of dollars; i. e., 000 omitted.] M ba e n m k b s e . r m t N c e r o m u o m s n b t - - er m N S em t o a n t b e - er P b r a i n v k a s t . e b F r b o a a a n r n e n c d i k h g e n s Total. Do- Trade acceptances. Total. panies. banks. mestic. Foreign. Total. B oston 7,565 175 1,140 362 9,242 9,242 New York 25,949 2,287 3,988 5,155 3,649 41,028 480 1,816 2,297 43,325 Philadelphia 1,967 1,967 21 21 1,988 Cleveland 45,244 53 5,117 7,823 2,134 60,371 250 176 426 60,797 Richmond 7,134 7,134 7,134 Atlanta 7,603 7,603 7,603 Chicago 31,948 100 ! 578 50 32,676 32,676 St. Louis 15,005 716 j 784 1,050 17,455 17,455 Minneapolis 28,153 875 | 997 336 1 30,361 30,361 Kansas City 12,989 645 i 202 525 14,411 330 330 14,741 Dallas 1,758 1,758 1,758 San Francisco 34,108 3,494 j 5,383 5,480 4S,493 1,348 49,840 Totals: Feb. 28,1919.. 219,423 2,418 15,110 22,062 13,586 271,488 730 3,691 4,421 276,920 Jan. 31,1919.. 224,237 2,178 11,986 22,163 15,119 275,683 1,871 3,739 5,610 281,293 Dec. 31,1918.. 234,323 2,545 10,442 19,740 12,994 2S0,244 2,536 4,388 6,924 287,168 Feb. 28,1918.. 252,747 1,648 3,856 28,419 7,097 293,767 5,456 299,223 Feb. 26,1917.. 59,498 36,478 1,094 20,389 677 118,136 5,068 123,204 Bills discounted by each Federal Reserve Bank during the three months ending February 28,1919, distributed by rates of discount; also average maturity and rates of bills discounted by each bank during the three months. 4 per cent. 4£ per cent. 4£ per cent. 4f per cent. Amount. Discount. Amount. Discount. Amount. Discount. Amount. Discount. Boston $1,036,981,903 j$1,133,752 837,824,431 $356,222 $3,395,319 $20,303 $11,719,653 $90,879 New York 9,870,122,386 |6,209,864 162,269,596 1,305,950 3,948,798 27,671 11,890,984 93,914 Philadelphia... 1,802,782,689 j1,700,991 29,052,925 265,211 626,451 3,879 2,867,001 19,203 Cleveland 514,912,743 678,873 138,314,190 322,177 2,397,728 13,906 5,242,794 31,041 Richmond 235,329,439 295,276 563,655,704 5,618,352 13,280 15,244,341 83,146 Atlanta 356,251,355 596,747 58,845,578 109,837 2,405,708 18,957 21,733,408 163,851 Chicago 770,445,747 1,260,501 7,369,471 65,407 43,985,008 81,361 31,567,916 203,648 St. Louis 365,796,369 502,313 3,046,693 23,070 6,870,110 17,066 12,594,239 100,754 Minneapolis... 33,452,990 ! 52,208 3,420,513 6,252 481,312 872 1,027,279 5,092 Kansas City... 1,027,045 i 4,385 197,535,379 337,599 31,929,497 60,176 2,004,897 12,327 Dallas 209,639,881 j 335,118 4,960,572 23,980 4,011,949 9,788 16,772,246 93,631 San Francisco. 442,288,328 714,250 1,933,266 Total. 15,202,742,547 \ 12,770,028 4,093,037 105,670,232 267,259 134,598,024 915,383 5 per cent. 5i per cent. 5£ per cent. Total. Average Average rate (365maturity Amount. Discount. Amount. Discount. Amount. Discount, Amount. Discount. in days. (per cent). Boston $996,201 $16,442 $1,090,917,507 $1,617,598 13.19 4.10 New York 1,326 239 1Q, 054,233,090 7,637,638 6.85 4.19 Philadelphia... 16,469 275 1,835,345,535 1,989,559 9.66 4.15 Cleveland 660,8(57,455 1,045,997 13.75 4.20 Richmond 6,044,185 44,154 $23,449 $445 825,915,470 999,383 10.27 4.30 Atlanta 293,293 5,311 439,529,342 894,703 17.59 4.22 Chicago $2,588,666 $55,940 855,956,808 1,666,857 16.89 4.21 St. Louis 116,406 2,505 388,423,817 615,708 14.50 4.18 Minneapolis... 453,441 j 5,090 880,447 19,328 39,715,982 30.42 4.43 Kansas City... 23,771,607 j 209,117 8,925,898 189,733 265,194,323 813,337 23.46 4.77 Dallas 14,597,732 i 160,109 10,098,424 j 215,761 260,080,804 838,387 25.53 4.61 San Francisco. 25,956,773 236,637 4,042,810 87,596 474,221,177 1,056,380 17.84 4.56 Total. 72,131,027 677,374 10,121,873 216,206 16,554,227 355,102 17,190,401,310 j 19,294,389 23.42 4.19 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

APRIL 1,1919. FEDERAL RESERVE BULLETIN. 393 RESOURCES AND LIABILITIES OF THE FEDERAL RESERVE BANKS. As the result of Government finance opera- |acceptances constitute nearly one-half of the tions, including mainly the. placing of the bank's investments, exceeding the amount of seventh and eighth series of Treasury certifi- war paper held by that bank. cates in anticipation of the Victory loan, the United States bonds on hand declined about Federal Reserve Banks show a further increase 1 million, while United States short-term securiin their holdings of war paper from 1,596.5 ties show a steadjr increase from 147.1 to 172.5 millions on February 20 to 1,691.7 millions on millions, the increase representing in part addi- March 21. Large increases under this head tional investments by the banks in one-year appear in the February 28 and March 7 state- 2 per cent certificates- deposited with the ments following the issue of the seventh certifi- Treasury to secure Federal Reserve bank-note cate series, the high level being reached on circulation, and to a smaller extent temporary March 14, when a total of 1,702.4 millions of purchases, largely from nonmember banks, of war paper on hand is shown. Other discounts 4J per cent certificates. Total earning assets on hand declined 32.1 millions during the period show an increase for the period of 79.6 millions under review. As a result the share of war and on March 21 stood at 2,343.2 millions. paper in the total discounts held shows a Gold reserves of the banks show an increase further rise from 88 to nearly 90 per cent, larger from 2,125 to 2,140.8 millions, while net depercentages obtaining for the eastern banks. posits went up from 1,730.8 to 1,768.6 millions. Additional interbank rediscounting may be Federal Reserve notes in circulation increased noted, the Federal Reserve Banks of Phila- during the four weeks from 2,466.2 to 2,510.7 delphia, Richmond, and Dallas reporting an millions, or at the rate of slightly over 11 aggregate increase in their contingent liabilities millions per week. It is notable that while on such rediscounts of about 28 millions during Boston, Chicago, and especially New York, rethe same period. The Boston bank was able port substantial increases in their circulation, to reduce its rediscount liability by about 17 the other banks show either nominal increases millions, so that the aggregate liability of the only or small decreases. Shipments of Fedfour banks shows a net increase for the four eral Reserve notes for the use of the American weeks of over 11 millions. In addition, con- troops returning from France, also exports in siderable amounts of acceptances were sold to some volume to the West Indies, chiefly Cuba, other Federal Reserve Banks, without indorse- account for some of the increase of 48.7 millions ment, by the New York bank during the month reported by the New York bank. Aggregate under review. liabilities of the banks on Federal Reserve bank Acceptances on hand declined about 8 notes show a slow though steady increase from millions. Direct purchases from the New 133.5 to 142.4 millions. The banks7 reserve York bank account for the gains in the accept- percentage in consequence of the increase in ance holdings of the Chicago and Minneapolis both deposit and note liabilities shows a debanks. In the case of the Minneapolis bank cline from 52.2 to 51.6 per cent. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

394 FEDERAL RESERVE BULLETIN. APRIL 1,1910. Resources and liabilities of each Federal Reserve Bank and of the Federal Reserve system at close of business on Fridays, Feb. 28, 1919, to Mar. 21, 1919. RESOURCES. [In thousands, of dollars; i. e., 000 omitted.} ! ton. Y N o e r w k. d P el h p i h la i - a. C la le n v d e . - c C a h g i- o. Lo S u t. is. M ap i o n l n is e . - K C a i n t s y a . s Dallas. F c S i r s a a c n n o - . Total. Gold coin and certificates: Feb. 28 2,802 260,524 280 17,529 2,265 8,322 23,024 4,300 8,282 162 6,013 12,259 345,762 Mar.7 3,104 260,434 214 14,440 2,259 8,293 22,555 4,325 8,268 92 6,018 11,068 341,070 Mar.14 3,272 245,713 132 21,444 2,144 8,092 22,539 4,201 8,276 115 6,047 10,774 332,749 Mar.21 3,598 244,721 205 21,746 2,180 8,039 22,732 4,260 8,289 106 6,085 7,780 329,741 Gold settlement fund, Federal Reserve Board: Feb. 28 51,026 43,870 41,112 70,291 16,439 17,756 97,959 22,594 28,793 39,645 7,464 26,535 463,484 Mar.7 43,537 53,226 46,862 66,152 29,341 21,435 121,461 22,919 26,372 29,654 14,325 35,943 511,227 Mar.14 37,625 106,615 43,263 55,125 33,749 1166,551122 110011,550022 16,109 17,033 26,202 11,687 35,656 501,078 Mar.21 31,381 187,527 41,377 66,222 41,092 9,312 98,751 16,634 10,444 25,118 8,140 30,866 Gold with foreign agencies: Feb. 28 408 2,011 408 525 204 175 816 233 291 204 321 5,829 Mar.7 408 2,011 408 525 204 175 816 233 233 291 204 321 5,829 Mar.14 408 2,011 408 525 204 175 816 233 233 291 204 321 5,829 Mar.21 408 2,011 408 525 204 175 816 233 291 204 321 5,829 Gold with Federal Reserve agents: Feb. 28 48,954 257,256 68,566 135,947 47,374 40,590 296,589 68,316 54,563 48,101 19,765 101,739 1,187,760 Mar.7 48,648 256,181 65,073 136,625 45,079 40,646 296,094 64,436 54,035 46,759 19,052 91,212 1,163,840 Mar.14 56,681 269,783 61,533 130,781 43,327 39,846 296,878 62,425 53,192 45,359 18,406 92,390 1,170,601 Mar.21 55,604 269,230 59,059 132,060 42,104 40,136 265,433 42,163 52,877 39,622 18,041 96,609 1,112,938 Gold redemption fund: Feb. 28 15,567 24,627 19,082 5,964 5,246 29,958 4,339 4,759 3,692 1,880 4,421 120,163 Mar.7 17,064 24,627 22,104 1,049 7,572 4,877 23,676 3,104 5,165 4,923 2,048 1,304 117,513 Mar.14 9,459 25,000 25,021 727 8,440 5,570 25,317 3,940 5,937 6,205 2,606 1,055 119,277 Mar.21 11,368 24,918 27,071 1,755 9,199 5,438 28,356 5,084 6,067 3,359 2,173 .082 125,470 Total gold reserve: Feb.28 118,757 588,288 129,448 224,920 72,246 72,089 448,346 99,782 96,630 91,891 35,326 145,275 2,122,998 Mar.7 112,761 596,479 134,661 218,791 84,455 75,426 464,602 95,017 94,073 81,719 41,647 139,848 2,139,479 Mar.14 i 107,445 649,122 130,357 208,602 87,864 70,195 447,052 86,908 84,671 78,172 38,950 140,196 2,129,534 Mar.21 102,359 728,407 128,120 222,308 94,779 63,100 416,088 68,374 77,910 68,496 34,643 136,258 2,140,842 Legal-tender notes, silver, etc.: Feb. 28 5,880 50,980 1,082 253 1,376 2,205 171 188 1,980 319 65,725 Mar.7 6,328 51,015 211 1,203 236 962 1,113 2,305 193 148 1,948 201 65,983 Mar.14 6,566 52/091 308 1,083 159 883 1,214 2,310 112 232 2,056 189 67,203 Mar.21 6,334 52,429 356 1,101 433 877 1,421 2,198 102 124 2,127 234 67,736 Total cash reserves: Feb. 28 124,637 639,268 129,751 226,002 72,499 73.077 449,722 101,987 96,801 92,079 37,306 145,594 2,188,723 Mar.7 119,089 647,494 134,872 220,054 84,691 76,388 ! 465,715 97,322 94,266 81,867 43,595 140,109 2,205,462 Mar.14 114,011 701,213 130,665 209,685 88,023 71.078 448,266 89,218 84,783 78,404 41,000 140,385 2,196,737 Mar.21 780,836 128,476 223,409 95,212 63,977 417,509 70,572 78,012 68,620 36,770 136,492 2,208,578 Bills discounted: Secured by Government war obligations— Feb. 28 139,841 741,979 17G,990 101,209 89,636 62,808 162,708 49,282 15,724 32,421 24,382 70,985 1,667,965 Mar.7 143,801 775,574 178,403 96,969 78,761 64,722 155,544 54,968 16,285 37,445 23,058 75,897 1,701,487 Mar.14 144,517 761,365 178,171 110,674 77,348 64,905 1152,165 57,931 21,144 40,880 20,921 72,324 1,702,351 Mar.21 136,864 676,608 169,255 114,661 86,799 65,423 191,704 77,274 27,356 50,589 21,158 73,987 1,691,678 All other— Feb. 28 6,361 45,059 13,081 10,913 12,752 15,861 9,215 1,776 35,851 32,206 22,460 211,855 Mar.7 6,206 29,157 9,331 4,934 11,671 11,905 15,219 8,343 1,486 30,018 30,738 21,232 186,240 Mar.14 5,245 11,536 4,503 10,649 12,318 13,33(i 8,197 1,400 38,348 j 29,798 19,448 184,012 Mar.21 5,085 32,052 13,020 3,654 11,898 12,621 14,903 8,627 1,404 38,088 | 29,380 17,923 189,861 Bills bought in open market: Feb. 28 9,241 43,325 1,987 00,797 7,134 7, fiO332,076 17,455 30,361 14,741 j 1,75849,841 270,919 Mar.7 10,393 40,088 1,(358 57,648 6.568 7,504 32,580 17,943 33,711 14,136 1,958 49,300 273,493 Mar. 14 9,816 16,897 1,332 51,183 e;6io 7,398 51,802 17,366 36,332 14,143 1,558 47,702 202,139 Unit M ed a r.2 S 1 tates Government 10,572 27,158 2,291 47,231 6,932 7,223 49,253 14,278 .33,611 13,751 1,803 47,821 201,924 long-term securities: Feb. 28 538 1,391 1,385 1,084 1,234 378 4,510 1,154 117 8,868 *3,967 2,468 27,094 Mar.7 538 1,389 1,385 1,083 1,234 378 4,476 1,154 117 8,808 3,967 2,408 27,057 Mar. 14 538 1,390 1,385 1,083 1,234 378 4,477 1,153 117 8,808 3,907 2,633 27,223 Mar.21 538 1,390 1,385 1,083 1,234 378 4,476 1,153 117 8,808 3,907 2,033 27,222 United States Government short-term securities: All o M M M F t e h b a a a e . r r r r . . . 1 7 2 2 e 4 1 8 arning assets: 1 1 1 1 4 2 4 2 ' , , , , 4 4 4 4 1 1 1 1 6 6 6 6 5 5 6 6 8 9 3 4 , , , , 7 7 4 4 6 4 0 3 2 7 7 6 1 1 1 1 1 2 3 5 , , , , 7 2 7 2 8 8 8 8 1 1 0 0 1 1 1 1 2 2 1 3 , , , , 3 3 8 4 4 4 4 5 2 1 2 7 5 5 5 5 , , , , 3 3 3 3 7 7 7 7 5 5 5 5 7 7 7 8, , , , 4 9 4 4 6 6 7 6 4 4 4 4 1 1 1 1 6 6 6 6 , , , , 6 6 6 6 1 1 1 1 2 2 2 2 ! I 8 8 8 , , , 0 0 0 6 6 6 8 8 8 9 9 9 , , , 7 1 5 3 0 9 9 9 5 5 6 6 , , , 5 1 0 1 2 3 0 0 0 4 4 4 3 , , , , 4 4 4 9 0 0 0 0 0 0 0 0 5 5 5 5 , , , , 3 7 4 5 2 4 1 2 9 7 4 5 1 1 1 17 5 5 0 2 5 9 8 , , , , 4 6 8 3 7 8 3 4 3 8 5 8 Feb. 28 4 Mar. 7 4 Mar. 14 4 4 Tota M l e a a r r .2 n 1 ing assets: 4 4 M M M Feb a a a . r r r . . . 1 2 7 2 4 1 8 1 1 1 1 6 6 7 7 8 7 4 3 , , , , 3 4 3 5 9 7 5 3 7 5 4 2 8 8 9 8 0 9 0 7 1 0 5 2 , , , , 5 6 9 3 0 4 1 4 1 4 5 8 2 2 2 2 0 0 0 0 1 3 5 6 , , , , 8 1 2 2 3 1 2 0 1 8 4 4 1 1 1 1 8 7 8 8 0 2 0 0 , , , , 7 9 0 2 5 7 8 8 1 6 6 5 1 1 1 1 0 0 1 1 3 1 2 4 , , , , 6 2 2 2 0 1 3 9 9 6 8 2 9 9 9 9 4 1 1 2 , , , , 1 0 9 9 2 0 7 6 3 9 7 7 2 2 2 2 7 3 3 2 6 2 8 4 , , , , 9 3 4 3 4 6 3 9 8 7 7 2 1 8 9 9 1 5 2 0 0 , , , , 1 7 4 4 7 1 7 0 4 5 6 0 7 5 6 6 1 7 1 8 , , , , 8 1 3 5 2 1 0 8 6 7 8 8 1 1 1 9 1 0 0 7 7 8 2 , , , , 3 3 9 5 9 6 6 0 7 5 4 3 6 6 6 6 0 4 6 0 , , , , 7 1 2 6 1 2 1 4 4 1 3 4 1 1 1 1 4 5 4 5 7 4 7 1 , , , , 9 8 0 3 1 2 8 2 1 1 3 2 2 2 2 2 , , , , 3 3 3 3 4 3 4 4 3 9 8 4 , , , , 1 1 5 0 6 1 2 7 0 6 5 7 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

APBIL 1,1919. FEDERAL RESERVE BULLETIN. 395 Resources and liabilities of each Federal Reserve Bank and of the Federal Reserve system at close of business on Fridays, Feb. 28, 1919, to Mar. 21, 1919—-Continued. RESOURCES—Continued. [In thousands of dollars; i. e., 000 omitted.] B to o n s- . Y N o e r w k. d P el h p i h la i - a. C la le n v d e . - m R o ic n h d - . Atlanta. c C a h g i- o. Lo S u t. is. M ap i o n l n is e . - K C a i n ty s . as Dallas. F S ra an n- Total. cisco. Bank premises: Feb. 28 800 500 100 296 217 2,936 541 400 221 400 9,713 Mar.7 800 3,302 500 100 296 217 2,944 540 400 221 400 9,720 Mar. 14 800 3,302 500 100 295 217 2,944 541 400 221 409 9,720 Mar.21 800 3,302 500 100 295 217 2,936 540 400 221 400 9,711 Uncollected items and other deductions from gross deposits: Feb. 28 52,246 163,406 76,917 52,447 43,387 31,917 74,327 42,817 15,196 57,018 19,549 24,238 653,465 Mar.7 47,706 145,811 60,109 47,784 40,862 26,302 74,657 42,155 12,273 56,659 19,406 25,473 599,197 Mar. 14 56,891 172,196 61,541 57,000 44,292 32,970 93,566 43,066 13,226 52,882 21,591 33,796 683,017 Mar.21 77,164 180,933 72,273 66,420 55,924 43,810 95,820 43,996 19,072 61,287 43,258 37,346 797,303 5 per cent redemption fund apainst Federal Reserve bank notes: Feb. 28 556 1,830 600 572 190 375 775 309 241 685 324 6,813 Mar.7 1,269 1,812 625 544 162 393 731 305 227 315 356 7,429 Mar. 14 616 1,836 700 576 98 377 621 337 199 356 6,745 Mar.21 716 1,819 700 623 315 426 408 259 254 335 356 6,901 All other resources: Feb.28 365 2,297 894 589 274 385 1,059 450 95 444 8,497 Mar.7 188 2,133 852 528 621 273 965 314 124 463 790 959 8,210 Mar. 14 255 1 771 " 892 440 499 249 888 311 123 502 770 807 7,507 Mar.21 224 1,701 1,389 537 448 273 657 307 114 405 709 1,008 7,772 Total resources: Feb.28 347,001 1,700,604 413,886 460,461 230,938 196,980 761,186 231,278 169,450 248,023 124,399 322,530 5,206,736 Mar.7 , 342,406 1,706,467 400,076 441,986 230,241 195,550 769,449 231,112 168,198 242,582 128,448 321,619 5,178,134 Mar. 14 347,105 1,752,666 400,502 448,086 234,423 197,858 784,677 226.188 166,919 241,247 124,567 323,565 5,247,803 Mar.21 355,072 1,770,235 405,169 471,175 264,432 202,826 794.278 226,074 169,278 249,366 142,007 323,513 5,373,425 LIABILITIES. Capital paid in: Feb.28 6,773 20,925 7,577 9,215 4,110 3,177 11,290 3,823 2,948 3,735 3,200 4,679 81,452 Mar.7 6,772 20,927 7,577 9,220 4,114 3,177 11,278 3,824 2,950 3,737 3,202 4,712 81,490 Mar. 14 6,775 20,927 7,577 9,218 4,114 3,180 11,350 3,805 2,959 3,738 3,198 4,721 81,562 Mar.21 6,775 20,927 7,576 9,218 4,114 3,180 11,372 3,825 2,969 3,738 3,198 4,720 81,612 Surplus fund: Feb.28 1,535 1,304 1,776 1,156 775 3,316 801 1,211 592 1,224 22,738 Mar.7 2,996 21,117 2,608 3,552 2,196 1,510 6,416 1,603 1,415 2,421 1,184 2,448 49,466 Mar.14 2,996 21,117 2,608 3,552 2,196 1,510 6,416 1,603 1,415 2,421 1,184 2,448 49,466 Mar.21 2,996 21,117 3,552 2,196 1,510 6,416 1,603 1,415 2,421 1,184 2,448 49,466 Government deposits: Feb.28 26,124 33,543 17,674 27,102 5,943 9,237 25,530 13,953 14,043 15,289 7,863 14,246 210,547 Mar.7 23,062 32,054 17,149 21,169 2,048 9,795 28,803 13,098 12,244 10,719 8,602 16,816 195,559 Mar.14 18,217 15,063 10,663 15,295 4,213 11,778 23,675 9,942 9,530 10,645 9,023 12,739 150,783 Mar.21 39,241 43,766 20,771 27,474 28,078 13,708 42,219 12,094 6,375 22,517 12,040 17,502 285,785 Due to members—reserve account: Feb.28 95,750 671,818 92,912 129,957 52,671 44,889 233,097 58,638 48,792 75,371 38,715 78,362 1,620,972 Mar. 7 98,517 678,210 96,460 128,111 55,171 42,634 230,740 61,630 48,781 69,100 38,321 78,401 1,626,076 Mar.14 94,186 715,361 102,767 132,499 54,001 42,900 232,801 59,383 49,255 73,131 39,463 79,298 1,675,045 Mar.21 85,311 687,643 87,351 130,663 50,397 44,221 221,429 59,656 49,434 71,617 39,406 77,591 1,604,719 Deferred availability items: Feb.28 42,844 120,541 68,763 45,534 31,315 19,318 53,236 36,497 8,384 35,707 15,129 17,385 494,653 Mar.7 36,073 110,762 52,235 36,751 31,979 18,488 55,234 34,225 8,887 40,733 18,710 12,212 456,289 Mar.14 46,608 122,338 54,907 44,856 36,007 20,121 70,680 35,079 9,703 35,778 13,846 19,189 509,112 Mar.21 39,856 130,978 65,225 57,026 45,826 19,444 69,926 32,987 15,136 34,252 28,385 16,342 555,383 Other deposits, including foreign government credits: Teb.28 106 113,744 851 321 220 1,634 185 102 66 6,423 124,032 Mar.7 271 112,562 562 163 58 2,003 402 180 715 43 6,325 123,363 Mar.14 616 105,704 744 313 51 1,928 512 323 678 62 6,509 117,522 Mar.21 170 107,714 643 297 3,172 510 419 182 164 6,619 120,062 Total gross deposits: Feb.28.... 164,824 939,646 180,200 202,914 73,664 313,497 109,414 71,404 126,469 61,773 116,416 2,450,204 Mar.7 157,923 933,588 166,406 186,194 89,277 70,975 316,780 109,355 70,092 121,267 65,676 113,754 2,401,287 Mar.14 159,627 958,466 169,081 192,963 94,303 74,850 329,084 104,916 68,811 120,232 62,394 117,735 2,452,462 Mar.21 164,578 970,101 173,990 215,460 124,391 77,455 336,746 105,247 71,364 128,568 79,995 118,054 2,565,949 Federal Reserve notes in actual circulation: Feb.28 159,552 677,619 210,768 233,069 128,595 110,785 410,806 108,838 88,159 101,609 51,167 191,340 2,472,307 Mar.7 160,876 689,212 210,099 230,950 128,544 111,823 415,139 108,431 88,106 101,269 51,200 192,888 2,488,537 Mar.14.. 163,142 710,002 206,956 229,761 127,679 110,087 417,611 107,708 87,972 100,856 50,551 190,770 2,503,095 Mar.21 165,338 715,569 205,885 229,590 127,441 112,269 418,932 107,025 87,662 100,435 50,279 190,262 2,510,687 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

396 FEDEEAL RESERVE BULLETIN. APRIL 1,1919. Resources and liabilities of each Federal Reserve Bank and of the Federal Reserve system at close of business on Fridays, Feb. 28, 1919, to Mar. 21, 1919—Continued. LIABILITIES—Continued. [In thousands of dollars; i. e., 000 omitted.] Bos- New Phila- Cleve- Rich- Chi- St. Minne- Kansas ton. York. delphia. land. mond. Atlanta. cago. Louis. apolis. City. Dallas. Fran- Total. cisco. Federal Reserve bank notes in circulation—net liability: Feb. 28.. 10,573 34,628 11,311 10,422 5,204 7,165 17,547 6,925 5,036 12,685 6,212 6,334 134,042 Mar. 7 11,552 34,248 11,816 10,708 5,189 7,327 18,043 7,181 5,098 12,743 6,279 6,407 136,591 Mar. 14 12,251 34,371 12,653 11,178 5,151 7,440 18,315 7,413 5,183 12,787 6,316 6,421 139,479 Mar.21 13,034 34,236 13,355 11,799 5,218 7,556 18,711 7,536 5,243 12,918 6,396 6,440 142,442 All other liabilities: Feb. 28 3,744 19,464 2,726 3,065 1,890 1,414 4,730 1,477 1,177 2,314 1,455 2,537 45,993 Mar. 7 2,287 7,375 1,570 1,362 921 738 1,793 718 537 1,145 907 1,410 20,763 Mar. 14 2,314 7,783 1,627 ! 1,414 980 791 1,901 743 579 1,213 924 1,470 21,739 Mar.21 2,351 8,285 1,755 1,556 1,072 856 2,101 1,286 955 1,589 Total liabilities: Feb. 28 347,001 1,700,604 413,886 460,461 196,980 761,186 231,278 169,450 248,023 124,399 322,530 5,206,736 Mar. 7 342,406 1,706,467 400,076 441,986 230,241 195,550 769,449 231,112 168,198 242,582 128,448 321,619 5,178,134 Mar.14 347,105 1,752,666 400,502 448,086 234,423 197,858 784,677 226,188 166,919 241,247 124,567 323,565 5,247,803 Mar.21 355,072 1,770,235 405,169 471,175 264,432 202,826 794,278 226,074 169,278 142,007 323,513 5,373,425 Maturities of bills discounted and bought, United States Government short-term securities, and municipal warrants. [In thousands of dollars, i. e., 000 omitted.] Within 15 16 to 30 31 to 60 61 to 90 Over 90 days. days. days. days. days. Total. Bills discounted: Feb. 28.. 1,511,355 57,883 202,040 86,221 22,321 : 1.879.820 Mar. 7 1,530,432 54,691 207,151 74,323 21.130 1,887,727 Mar. 14... 1,525,076 55,292 225,629 59,319 j 21.047 1,886,363 Mar.21 1,529,079 58,574 221,949 50,922 21.015 1,881,539 Bills bought: Feb. 28 82,025 76,479 93,348 25,067 I 276,919 Mar. 7 83,799 81,948 90,833 16,913 ! '.. 273,493 Mar. 14 99,651 68,850 76,312 17,326 262,139 Mar. 21 87,157 72,289 81,343 21,135 261,924 United States short-term securities: Feb. 28 18,714 350 136,624 155,688 Mar. 7 19,745 202 2,816 137,072 159,835 Mar.14 23,503 202 2,815 141,828 168,348 Mar.21 24,242 221 6,466 141,542 172,471 Municipal warrants: Feb. 28 1 3 4 Mar.7 4 4 Mar. 14.. 1 3 4 Mar. 21 1 3 4 ! Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

APRIL 1,1919. FEDERAL RESERVE BULLETIN. 397 FEDERAL RESERVE NOTES. Federal Reserve note account of each Federal Reserve Bank at close of business on Fridays, Feb. 28 to Mar. 21, 1919. [In thousands of dollars; i. e., 000 omitted.] New Phila- Cleve- Rich- At- Chi- St. Minne-Kansas San Boston. York. delphia land. mond. lanta. cago. Louis. apolis. City. Dallas. Fran- Total. cisco. Federal Reserve notes received from agent—net: Feb. 28 163,221 772,365 222,894 248,940 132,862 115,341 436,724 121,366 108,957 52,704 213,663 2,678,606 Mar. 7 165,915 765,451 221,001 246,618 131,458 115,197 436,228 121,515 1,541 108,116 52,527 217,336 2,670,903 Mar. 14 167,948 779,951 219,361 244,274 130,770 113,757 437,013 120,314 1.298 107,916 51,605 216,814 2,679,021 Mar.21 168,871 798,778 218,287 244,182 130,618 115,507 435,568 119,707 106,619 51,541 217,373 2,696,544 Federal Reserve notes held by bank: Feb. 28 3,669 94,746 12,126 15,871 4,2<>7 4,556 25,918 12,528 1,410 7,348 1,537 22,323 206,299 Mar. 7 5,039 76,239 10,902 15,668 2,914 3,374 21,089 13,084 1,435 6,847 1,327 24,448 182,366 Mar. 14 4,806 69,949 12,405 14,513 3,091 3,670 i 19,402 12,606 1,326 7,060 1,054 26,044 175,926 Mar.21 3,533 83,209 12,402 14,592 3,177 3,238 16,636 12,682 1,831 6,184 1,262 27,111 185,857 Federal Reserve notes in actual circulation: Feb. 28 159,552 677,619 210,768 233,069 i128,595 110,785 410,806 108,838 88,159 101,609 51,167 191,340 2,472,307 Mar. 7 160,876 689,212 210,099 230,950 128,544 111,823 415,139 108,431 88,106 ^01,269 51,200 192,888 2,488,537 Mar. 14 163,142 710,002 206,956 229,761 127,679 110,087 417,611 107,708 87,972 00,856 50,551 190,770 2,503,095 Mar.21 165,338 715,569 205,885 229,590 127,441 112,269 418,932 107,025 87,662 LOO,435 50,279 190,262 2,510,687 Gold deposited with or to credit of Federal Reserve agent: Feb. 28 48,954 257,256 68,566 135,947 47,374 40,590 296,589 68,316 54,563 48,101 19,765 101,739 1,187,760 Mar.7 48,648 256,181 65,073 136,625 45,079 40,646 296,094 64,436 54,035 46,759 19,052 91,212 1,163,840 Mar. 14 56,681 269,783 61,533 130,781 43,327 39,846 296,878 62,425 53,192 45,359 18,406 92,390 1,170,601 Mar.21 55,604 269,230 59,059 132,060 42,104 40,136 265,433 42,163 52,877 39,622 18,041 1,112,938 Paper delivered to Federal Reserve agent: Feb. 28. 155,443 830,363 156,559 167,619 102,968 80,834 211,245 64,259 46,924 83,013 58,346 142,426 2,099,999 Mar. 7 160,400 844,819 159,098 158,365 94,974 78,630 203,349 75,907 50,615 87,599 53,796 133,867 2,101,419 Mar. 14 159,578 807,496 160,433 165,453 89,491 78,852 217,303 70.092 58,714 93,377 52,277 127,924 2,080,990 Mar.21 152,521 735,818 164,274 164,804 102,533 77,007 255,860 93,100 60,047 103,028 52,347 123,369 2,084,708 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

398 FEDERAL RESERVE BULLETIN. APRIL 1,1919. Federal Reserve note account of each Federal Reserve agent at close of business on Fridays, February 28 to March 21, 1919. (In thousands of dollars; i. e., 000 omitted.) Boston. Y N o e r w k. d P el h p i h la ia - . C la le n v d e . - m R o ic n h d - . la A n t t - a. c C a h g i o - . Lo S u t. is. M ap i o n l n is e . - City. Dallas. F c S i r s a a c n n o - . Total. Received from Comptroller: Feb. 28 262,000 1,344,680 335,420 333,840 204,820 204,560 563,160 171,420 124,480 158,700 101,960 251,720 4,056,760 Mar.7 262,880 1,355,680 335,420 333,840 205,220 204,960 563,560 171,720 124,880 158,700 101,960 252,920 4,071,740 Mar.14 269,040 1,380,480 341,420 334,060 212,520 204,960 563,560 171,800 124,880 159,700 101,960 253,220 4,117,600 Mar. 21 271,360 1,393,080 341,420 335,060 213,020 206,960 564,280 174,920 124,880 159,700 101,960 254,420 4,141,060 Returned to Comptroller: Feb. 28.... 73,458 414,915 90,426 52,130 48,393 33,493 78,156 38,689 23,311 35,223 24,996 27,057 940,247 Mar.7 75,765 437,829 93,919 54,452 50,687 35,438 82,331 39,570 23,839 36,564 25,708 29,584 985,686 Mar.14 77,732 456,929 97,459 57,296 52,440 36,238 84,547 41,581 24,682 37,964 26,355 30,406 1,023,629 Mar.21 79,809 462,702 59,018 53,662 36,948 87,952 42,843 24,997 38,701 26,719 31,047 1,044,331 Chargeable to Federal Reserve Feb. 28 188,542 929,765 244,994 281,710 156,427 171,067 485,004 132,731 101,169 123,477 76,964 224,663 3,116,513 Mar.7 187,115 917,851 241,501 279,388 154,533 169,522 481,229 132,150 101,041 122,136 76,252 223,336 3,086,054 Mar.14 191,308 923,551 243,961 276,764 160,080 168,722 479,013 130,219 100,198 121,736 75,605 222,814 3,093,971 Mar.21 191,551 930,378 241,487 276,042 159,358 170,012 476,328 132,077 99,883 120,999 75,241 223,373 3,096,729 In hands of Federal Reserve agent: Feb. 28 25,320 157,400 22,100 32,770 23,565 55,726 48,280 11,365 11,600 14,520 24,260 11,000 437,907 Mar.7 21,200 152,400 20,500 32,770 23,075 54,325 45,000 10,635 11,500 14,020 23,725 6,000 415,150 Mar.14 23,360 143,600 24/600 32,490 29,310 54,965 42,000 9,905 10,900 13,820 24,000 6,000 414,950 Mar.21 22,680 131,600 23,200 31,860 28,740 54,505 40,760 12,370 10,390 14,380 23,700 6,000 400,185 Issued to Federal Reserve Bank, less amount returned to Federal Reserve agent for redemption: Feb. 28 163,221 772,365 222,894 248,940 132,862 115,341 436,724 121,366 108,957 52,704 213,663 2,678,606 Mar.7 165,915 765,451 221,001 246,618 131,458 115,197 436,228 121,515 ;9,541 108,116 52,527 217,336 2,670,903 Mar.14 167,948 779,951 219,361 244,274 130,770 113,757 437,013 120,314 59,298 107,916 51,605 216,814 2,679,021 Mar.21 168,871 798,778 218,287 244,182 130,618 115,507 435,568 119,707 19,493 106,619 51,541 217,373 2,696,544 Collateral held as security for outstanding notes: Gold coin and certificates on hand— Feb. 28 173,740 27,270 2,503 13,052 12,582 229,147 Mar.7 173,740 30,270 2,503 13,052 12,581 232,146 Mar.14 188,740 23,270 2,503 13,052 12,581 240,146 Mar.21 188,740 23,270 2,503 13,052 12,581 2,860 243,006 Gold redemption fund— Feb. 28 9,954 13,516 15,677 13,677 1,374 1,817 4,925 2,886 3,011 3,741 2,999 13,861 87,438 Mar.7 9,648 12,441 12,184 11,355 3,079 873 5,749 3,505 2.483 2,399 2,787 12,954 79,457 Mar.14 9,681 11,043 13,644 12,511 1,327 2,073 5,533 3,494 1,640 2,999 2,641 12,132 78,718 Mar.21 8,604 10,490 11,170 13,790 2,104 2,633 5,129 2,232 3,325 4,262 2,776 11,490 78,005 Gold settlement fund, Federal Reserve Board— Feb. 28 39,000 70,000 52,889 95,000 46,000 36,270 291,664 65,430 38,500 44,360 4,184 87,878 871,175 Mar.7 39,000 70,000 52,889 95,000 42,000 37,270 290,345 60,931 38,500 44,360 3,684 78.258 852,237 Mar.14 47,000 70,000 47,889 95,000 42,000 35,270 291,345 58,931 38,500 42,360 3,184 80,258 851,737 Mar.21 47,000 70,000 95,000 40,000 35,000 260,304 39,931 36,500 35,360 2,684 82,259 791,927 Eligible paper, minimum required i— Feb. 28 114,267 515,109 154,328 112,993 85,488 74,751 140,135 53,050 35,006 60,856 32,939 11,924 1,490,846 Mar. 7 117,267 509,270 155,928 109,993 86,379 74,551 140,134 57,079 35,506 61,357 33,475 126,124 1,507,063 Mar.14 111,267 510,168 157,828 113,493 87,443 73,911 140,135 36,106 62,557 33,199 124,424 1,508,420 Mar.21 113,267 529,548 159,228 112,122 88,514 75,371 170,135 77,544 36,616 66,997 33,500 120,764 1,583,606 1 For actual amount, see "Paper delivered to Federal Reserve agent," on p. 397. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

APRIL 1,1919. FEDERAL RESERVE BULLETIN. 399 CONDITION OF MEMBER BANKS. Two additional issues of Treasury certificates war paper held by the member banks of the in anticipation of the Victory Liberty loan, country it may be stated that on December 31, aggregating over $1,000,000,000, also further 1918, all member banks held a total of war issues of tax certificates are the principal securities and war paper of about 4,300 millions; Government fiscal operations affecting the that between January 1 and March 15 of the weekly statements of condition of 772 member present year the net increase in outstanding cerbanks in leading cities for the 4-week period tificates, mostly held by the banks of the coun- February 14 to March 14, 1919. The im- try, amounts to about 2,900 millions; and mediate effects of the certificate issues are that since December 27 of the past year, reportseen in the considerable increases in the ing members alone show an increase in this certificate holdings on the two Fridays followtotal of about 978 millions. For the New ing February 27 and March 13, the dates of York City banks the four weeks under reissue of these certificates, and in an increase on view brought an increase in war securities March 14 by 498.2 millions of the total on and war paper from 1,593.9 to 1,708.4 millions hand over the 1,743 millions held on February and an increase in the percentage to total loans 14. Of the total increase the share of member and investments from 30.6 to 32 per cent. banks in New York City was 171.7 millions During the same period fluctuations in and that of the member banks in all Federal Government deposits ranged between 680.1 Reserve cities 336 millions. millions on February 28 and 546.2 millions the As against these considerable increases the following week, the two largest increases again banks report net liquidation of 47.6 millions following the dates of the two certificate issues. in United States bonds, other than circulation Other demand deposits reached a high level of bonds (i. e., chiefly Liberty bonds), and of 10,311.4 millions on March 14, a gain for the 51.9 millions in loans secured by United States four weeks under review of 399.7 millions, of war obligations (so-called war paper). It is which 316 millions represents the gain for interesting to note that whereas the bulk of member banks in the 12 Federal Reserve the bonds disposed of is shown for the banks cities and 193.4 millions—the gain for the New outside of New York City, curtailment of war York City banks alone. It is most likely that paper on hand is credited almost exclusively these considerable increases in demand deto the New York City banks. All other loans posits represent accumulations of funds by and investments likewise show substantial individual depositors and nonreporting banks increases on the Fridays immediately following for income tax payments due on March 15. the dates of the two latest certificate issues and Time deposits show a steady increase during probably reflect somewhat amounts of borrowthe period from 1,624.5 to 1,663.5 millions, ings from reporting correspondents by nonrethe largest increases being shown by the porting member and nonmember banks. Agbanks outside the Federal Reserve bank and gregate holdings of United States war securities branch cities. In harmony with the large and war paper on March 14 were 4,035.3 gains in deposits, reserve balances (with Fedmillions as against 3,636.7 millions four weeks eral Reserve Banks) show an increase from earlier, and constituted 27.7 per cent of the 1,255.4 to 1,298.3 millions, the bulk of this total loans and investments of all reporting increase being shown for the New York City banks, as against 26 per cent shown on banks. Cash in vault indicates a further February 14. decline from 361.1 to 348.8 millions, all classes As bearing upon the question of the total of banks sharing in this decline. amount of United States war securities and Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

400 FEDEEAL EESERVE BULLETIN. APRIL 1, 1919. Principal resources and liabilities of member banks in leading cities, including member banks located in Federal Reserve Bank cities and in Federal Reserve branch cities as at close of business on Fridays, from Feb. 21 to Mar. 14, 1919. 1. ALL REPORTING MEMBER BANKS. [In thousands of dollars; i. e. 000 omitted.] Boston. Y N o e r w k. p P ad h h e i i a l l - - . C la le n v d e . - m R o ic n h d - . la A nt t- a. Lo S u t. is. e M ap i o n l n i - s. K C an it s y a . s Dallas. c F S i r s a a c n n o - . Total. Number of reporting banks: Feb. 21 106 101 772 Feb. 28 106 101 771 Mar. 7... 106 101 771 Mar. 14 106 101 76 772 United States bonds to secure circulation: Feb.21 14,402 46,001 11,497 40,982 24,989 15,265 19,861 16,908 6,466 13,805 17,979 34,605 262,760 Feb. 28 14,402 46,606 11,597 40,982 25,090 15,265 19,911 16,708 6,469 13,959 17,929 34,605 263,523 Mar.7 14,402 46,889 11,597 41,182 24,949 15,265 19,911 16,908 6,769 13,969 17,929 34,605 264,375 Mar. 14 14,402 48,140 11,597 40,982 25,190 15,265 19,911 16,908 6,820 13,984 17,931 34,605 265,735 Other United States bonds, including Liberty bonds: Feb. 21 19,012 288,879 40,456 75,530 52,570 34,552 67,474 26,450 11,778 25,554 20,486 35,935 698,676 Feb. 28 18,895 294,686 39,505 74,856 52,293 33,381 64,574 25,208 11,723 24,637 20,243 35,677 695,678 Mar. 7 19,990 283,850 39,335 70,837 52,629 32,711 62,034 23,176 11,377 24,104 20,344 35,245 675,632 Mar.14 19,736 289,943 38,010 72,644 50,233 31,711 60,322 22,319 11,134 24,186 20,574 35,283 676,095 United States certificates of indebtedness: Feb. 21 105,265 789,453 109,853 151,358 55,140 55,427 *219,344 55,495 35,050 39,419 20,597 92,777 1,729,178 Feb. 28 132,655 916,493 126,633 167; 839 61,412 63,708 249,149 65,511 40,996 47,196 28,420 98,646 1,998,658 Mar.7 134,784 904,528 124,079 165,516 62,336 63,917 252,498 65,581 40,947 50,486 28,885 100,699 1,994,256 Mar.14 160,389 .,011,000 140,744 185,493 69,189 69,904 283,357 72,176 44,902 56,217 33,693 114,118 2,241,182 Total United States securities owned: Feb. 21 138,679 ,124,333 161,806 267,870 132,699 105,244 306,679 98,853 53,294 78,778 59,062 163,317 2,690,614 Feb. 28 165,952 ,257,785 177.735 283,677 138,795 112.354 333,634 107,427 59,188 85,792 66,592 168,928 2,957,859 Alar. 7 169,176 ,235,267 175; on 277,535 139,914 111,893 334,443 105,665 59,093 88,559 67,158 170,549 2,934,263 Mar.14 194,527 ,349,083 190,351 299,119 144,612 116,880 363,590 111,403 62,856 94,387 72,198 184,006 3,183,012 Loans secured by United States bonds and certificates: Feb. 21 87,051 610,442 144,521 95,898 39,320 18,689 86,244 24,235 10,247 11,232 10,300 20,321 1,158,500 Feb. 28 87,630 625,345 145,429 94,860 38,476 19,212 88,209 23,914 10,404 11,164 8,666 20,815 1,174,124 Mar.7 88,550 584,489 142,891 97,337 38,106 21,013 88,891 22,556 10,493 10,362 7,950 20,555 1,133,193 Mar.14 89,239 563,976 142,916 95,922 38,920 20,644 89,921 26,396 11,448 10,724 7,570 20,391 1,118,007 Other loans and investments: Feb. 21 743,789 3,890,435 621,408 970,559 367,006 303,629 1,363,094 374,060 221,878 439,561 510,819 9,975,131 Feb. 28 752,769 3,951,808 599,381 970,540 363,958 302,743 1,381,063 374,400 ;226,598 440,487 171,208 504,048 10,039,003 Mar.7 753,012 3,661,566 603,281 961,438 367,984 301,545 1,388,198 380,686 225,016 444,737 172,464 509,245 10,069,172 Mar.14 776,541 3,998,556 614,739 985,465 367,609 303,365 1,415,896 384,222 228,508 444,002 172,130 510,526 10,201,559 Total loans and investments: Feb. 21 I 969,519 5,625,210 927,735 1,334,327 539,025 427,562 1,756,017 497,148 :285,419 529,571 238,255 694,457 13,824,245 Feb. 28 11,006,351 5,834,938 922,545 1,349,077 541,229 434,309 1,802,906 505,741 ;296,190 537,443 246,466 693,791 14,170,986 Mar.7 11,010,738 5,781,322 921,183 1,336.310 546,004 434,451 1,811,532 508,907 1294,602 543,658 247,572 700,349 14,136,628 Mar.14 11,060,307 5,911,615 948,006 1,380 506 551,141 440,889 1,869,407 522,021 302,812 549,113 251,898 714,923 14,502,638 Reserve with Federal Reserve Bank: Feb. 21 60,292 612,784 65,510 91,489 34,239 28,977 156,721 41,605 21,513 44,097 18,049 50,186 1,225,462 Feb. 28 66,985 629,970 67,036 91,169 33,307 29,308 163,080 21,929 45,239 17,497 48,658 1,253,165 Mar.7 69,555 636,803 64,361 89,399 35,237 27,675 165,191 41,526 23,359 42,433 18,149 48,561 1,262,249 Mar. 14 64,892 665,035 67,219 94,744 37,097 28,685 165,324 43,048 23,023 43,651 17,382 48,190 1,298,290 Cash in vault: Feb. 21 20,573 116,935 20,124 31,800 15,570 13,571 59,094 9,909 7,961 14,364 8,109 18,504 336,514 Feb. 28 22,799 114,328 19,705 30,820 15,907 14,807 59,021 10,212 14,449 8,534 18,983 337,698 Mar.7 23,254 116,188 20,700 32,200 17,451 14,633 59,381 10,949 8,055 14,540 8,752 19,932 346,035 Mar. 14 23,257 117,605 19,400 33,123 16,708 14,555 62,112 10,142 8,044 15,023 8,679 20,166 348,814 Net demand deposits on which reserve is computed: Feb. 21 682,449 4,581,052 651,966 805,158 319,399 241,231 1,187,469 306,068 209,484 386,787 153,687 420,517 9,945,267 Feb. 28 685,824 4,622,354 638,823 794,644 316,302 244,520 1,199,664 302,473 216,813 398,344 153,293 415,410 9,988,464 Mar.7 689,841 4,622,450 653,853 822,061 310,701 244,605 1,214,504 1307,122 219,154 383,530 155,742*441122;,057 10,035,620 Mar. 14 719,038 4,743,088 666,588 835,498 325,795 246,760 1,243,732 |318,638 223,606 394,628 158,881 435,093 10,311,435 Time deposits: Feb. 21 103,946 258,574 20,808 284,412 70,502 102,283 412,433 93,170 52,277 66,719 27,901 135,760 ], f-28,785 Feb. 28 104,901 257,057 21,354 296,360 70,898 102,416 414,249 93,531 52,577 65,113 28,457 134,319 1,641,232 Mar.7 103,664 259,034 21,581 291,697 71,269 103,452 417,893 91,060 52,727 65,827 '^,607 134,820 1,641,631 Mar.14 104,763 271,547 21,822 292,048 72,638 103,371 419,470 94,310 53,420 66,373 27,930 135,825 1,663,517 Government deposits: Feb. 21 45,773 267,558 34,649 56,415 13,229 12,964 68,044 22,899 9,601 14,492 7,010 552,634 Feb. 28 67,244 325,845 45,747 59,308 17,656 18,139 74,392 28,716 13,219 20,030 9,809 680,105 Mar.7 57,261 253,057 35,914 43,227 14,274 15,193 63,867 23,003 10,419 20,091 9,884 546,190 Feb. 14 70,639 315,258 48,681 44,799 18,404 18,251 74,140 29,550 13,079 22,878 14,560 670,239 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

APRIL 1,1919. FEDERAL RESERVE BULLETIN. 401 Principal resources and liabilities of member banks in leading cities, including member banks located in Federal Reserve Bank cities and in Federal Reserve branch cities as at close of business on Fridays, from Feb. 21 to Mar. 14, 1919—Contd. 2. MEMBER BANKS IN FEDERAL RESERVE BANK CITIES. |In thousands of dollars; i. e., 000 omitted.] Boston. Y N o e r w k. p a P h d h e i i a l l - - . C la le n v d e . - m R o ic n h d - . la A nt t- a. Chicago. Lo S u t. is. M ap in o n li e s - . K C an it s y a . s Dallas. c F i S r s a a c n n o - . Total. Number of reporting banks: Feb. 21 255 Feb. 28 255 Mar. 7 255 Mar.14 255 United States bonds to secure circulation: Feb. 21 4,278 35,983 7,487 4,098 2,832 3,800 1,119 10,553 2,387 4,591 4,060 18,500 99,688 Feb. 28 4,278 36,388 7,587 4,098 2,873 3,800 1,169 ! 10,553 2,390 4,745 4,060 18,500 100,441 Mar.7 4,278 36,671 7,587 4,298 2,832 3,800 1,169 i 10,553 2,690 4,755 4,060 18,500 101,193 Mar.14 4,278 37,922 7,587 4,098 2,873 3,800 1,169 10,553 2,741 4.745 4,060 18,500 102,326 Other United States bonds, including Liberty bonds: Feb. 21 9,097 246,814 31,151 13,880 7,723 3,861 25,385 ! 15,590 1,663 6,813 4,520 14,039 380,536 Feb. 28 9,045 253,679 30,429 13,458 7,611 3,626 24,613 15,085 1,658 6,541 4,433 13,974 384,152 Mar.7 10,126 243,350 30,260 12,907 7,916 3,553 23,610 13,638 1,793 6,416 4,568 13,952 372,089 Mar.14 10,046 250,593 29,099 12,139 7,928 3,355 21,866 . 13,106 1,514 6,395 4,827 13,893 374,761 United States certificates | of indebtedness: Feb. 21 72,305 733,691 97,089 32,350 9,212 i 8,841 127,511 37,817 15,247 10,128 10,677 33,223 1,188,091 Feb. 28 93,292 850,764 111,939 37,240 9,487 9,523 142,462 44,953 17,986 12,696 13,730 32,662 1,376,734 Mar.7 96,142 839,906 109,486 37,873 9,602 9,400 147,745 44,618 17,722 13,874 13,230 32,815 1,372,413 Mar.14 115,320 936,852 124,631 44,411 10,678 9,894 161,885 49,830 18,796 17,257 16,689 40,803 1,547,046 Total United States securities owned: Feb. 21 85,680 1,016,488 135,727 19,767 16,502 154,015 63,960 19,297 21,532 19,257 65,762 1,668,315 Feb.28 106,615 1,140,831 149,955 54,796 19,971 16,949 168,244 70,591 22,034 23,982 22,223 65,136 1,861,327 Mar.7 110,546 1,119,927 147,333 55,078 20,350 16,753 172,524 22,205 25,045 21,858 65,267 1,845,695 Mar.14 129,644 1,225,367 161,317 60,648 21,479 17,049 184,920 73,489 23,051 28,397 25,576 73,196 2,024,133 Loans secured by United States bonds and certificates: Feb. 21 68,255 568,069 139,320 30,348 15,728 4,327 62,550 18,007 5,639 2,388 2,390 10,090 927,111 Feb. 28 68,849 583,928 140,245 29,213 15,422 3,827 64,327 17,879 5,887 2,410 3,108 10,306 945,401 Mar.7 69,906 5_4_4_,,.0_8_3 137,682 30,853 15,356 5,493 64,977 17,708 6,166 2,511 2,585 9,775 907,095 All M ot a h r e . r 1 4 l oans and in f.. - 70,332 520,924 1 | 137,672 29,457 15,368 4,923 65,379 21,092 6,904 2,776 2,197 10,060 887,084 vestments: Feb. 21 518,874 3,495,485 !o43,412 275,038 70,585 59,664 834,034 256,272 95,027 154,123 39,768 199,857 6,542,139 Feb. 28 527,779 3,550,900 ;525,570 270,450 69,630 I 59,211 840,845 256,943 97,669 154,792 41,159 197,661 6,592,600 Mar.7 526,342 3,562,016 1529,583 269,650 72,661 j 58,109 861,297 260,041 95,177 158,538 40,220 1194,443 6,628,077 Mar. 14 547,556 3,594,230 540,184 274,372 71,487 | 59,483 884,459 261,373 97,143 158,461 41,386 195,487 6,725,621 Total loans and investments: Feb. 21 672,809 5,080,042 j 818,459 355,714 106,080 I 80,493 1,050,599 338,239 119,963 178,043 61,415 275,709 9,137,565 Feb. 28 703,234 5,275,659 ; 815,770 354,459 105,023 j 79,987 1,073,416 345,413 125,590 181,184 66,490 273,103 9,399,328 Mar.7 706,794 5,226,026 814,598 355,581 108,367 i 80,355 1,098,798 346,558 123.548 186,094 64,663 269,485 9,380,867 Mar.14 747,532 5,340,521 839,173 364,477 108,334 81,455 1,134,758 355,954 127,'098 189,634 69,159 J278,743 9,636,838 Reserve with Federal Reserve Bank: Feb. 21 46,597 578,641 59,077 22,426 6,464 6,713 110,309 29,448 9,837 15,156 4,539 ! 17,737 906,944 Feb. 28 53,628 597,046 60,364 21,973 5,885 5.342 113,123 28,501 9,920 16,644 4,212 ! 17,970 934,608 Mar.7 55,561 603,685 58,219 20,240 j 6,1875,569 115,322 29,243 10,913 13,425 4,438 19,202 942,004 Mar.14 49,868 629,713 61,026 22,857 5,974 4,641 114,137 28,640 10,815 15,386 3,979 16,936 963,972 Cash in vault: Feb. 21 12,632 103,594 16,156 6,793 !1,273 2,362 36,812 5,962 2,199 3,949 1,469 4,810 198,011 Feb. 28 13,913 101,078 15,993 6,885 ; 1,342 2,820 35,107 6,187 2,401 4,032 1,514 4,980 196,252 Mar.7 14,450 102,612 j16,521 7,595 ;1,535 2328 35,939 6,064 2,371 4,002 1,595 5,617 200,629 Mar.14 14,212 104,006 !15,866 7 845 ! 1,636 36,739 5,761 2,572 4,131 1,475 5,326 202,038 Net demand deposits on | which reserve is corncomputed: Feb. 21 521,892 4,185,174 1570,261 176,116 j 57,658 42,564 805,959 202,095 90,256 136,405 41,085 172,999 7,002,464 Feb. 28 522,041 4,224,491 557,122 174,584 56,274 43,133 817,851 199,400 94,191 141,422 40,843 168,499 7,039,851 Mar.7 522,003 4,222,288 .570,700 184,481 56,190 43,751 830,644 204,697 94,942 139,019 42,267 163,693 7,074,675 Mar.14 557,709 4,338,864 581,891 189,044 58,084 45,558 843,932 213,776 97, 777137,572 44,357 171,269 7,279,833 Time deposits: Feb. 21 28,393 200,472 13,012 124,496 9,018 19,480 157,972 63,206 17,959 7,826 2,806 10,686 655,326 Feb. 28 28,381 198,370 13,430 125,389 9,653 19,047 158,659 63,589 17,682 7,131 2,992 9,927 654,250 Mar.7 28,144 199,695 13,477 126,770 ! 9,870 19,622 160,154 64,157 18,087 7,344 2,982 10,108 660,410 Mar.14 29,630 204,241 13,568 126,833 : 10,100 19,610 160,297 63,846 18,176 7,167 2,926 10,138 666,532 Government deposits: Feb. 21 35,472 247,631 ! 31,562 15,193 ! 2,467 2,422 44,688 16,334 4,450 7,030 4,022 j 411,271 Feb. 28 52,800 299,911 41,726 18,048 2,429 2,588 42,793 21,401 5,676 9,518 5,837 I 502,727 Mar.7 45,987 232,688 32,805 14,371 1,651 2,090 38,856 16,826 4,329 ! 9,446 5,579 S 404,628 Mar.14 51,587 286,544 44,596 16,688 2,304 2,166 47,446 20,661 4,774 11,504 10,271 498,541 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

402 FEDERAL RESERVE BULLETIN. APRIL 1,1919. Principal resources and liabilities of member banks in leading cities, including member banks located in Federal Reserve Bank cities and in Federal Reserve branch cities as at close of business on Fridays, from Feb. 21 to Mar. 14, 1919—Contd. 3. MEMBER BANKS IN FEDERAL RESERVE BRANCH CITIES. [In thousands of dollars; i e., 000 omitted.] C D le is v t e ri la c n t. d ! R D ic is h t m ric o t n . d 2 D A is tl t a ri n c t t a .3 D C i h st i r c i a c g t.- o * D St i . s t L ri o c u t i . s s D K is C a t; n i i r t s i y c a t s .6 D D is a tr ll i a c s t J S D a i n c s i t s F r c i r c o a t n .8 - Total. Number of reporting banks: Feb. 21... 39 28 159 Feb. 28 159 Mar.7 159 Mar. 14 39 160 United States bonds to secure circulation: Feb. 21 23,616 4,931 5,085 1,805 5,005 4,487 1,255 8,485 54,669 Feb. 28 23,616 4,991 5,085 1,805 4,805 4,487 1,255 8,485 54,529 Mar.7 23,616 4,991 5,085 1,805 5,005 4,487 1,255 8,485 54,729 Mar.14 23,616 5,091 5,085 1,805 5,005 4,487 1,255 8,485 54,829 Other United States bonds, including Liberty bonds: Feb. 21 48,456 8,302 15,079 19,177 9,838 8,301 2,077 14,518 125,748 Feb. 28 48,355 8,230 14,449 18,669 9,153 7,599 2,063 14,458 122,976 Mar.7 44,914 8,094 14,084 18,065 8,566 8,272 2,105 14,257 118,357 Mar.14 47,997 8,146 13,598 17,604 8,301 8,137 2,088 14,004 119,875 United States certificates of indebtedness: Feb. 21 93,413 21,965 31,633 48,759 15,861 15,670 1,545 45,300 274,146 Feb. 28 : 101,806 24,885 37,063 59,133 18,380 18,214 2,565 50,458 312,504 Mar.7 98,477 24,789 37,100 57,687 18,804 19,198 2,780 51,347 310,182 Mar.14 109,232 28,392 40,678 68,209 20,002 20,298 3,201 55,197 345,209 Total United States securities owned: Feb. 21 165,485 35,198 51,797 69,741 30,704 28,458 4,877 68,303 454,563 Feb. 28 173,777 38,106 56,597 79,607 32,338 30,300 5,883 73,401 490,009 Mar.7 167,007 37,874 56,269 77,557 32,375 31,957 6,140 74,089 483,268 Mar.14 180,845 41,629 59,361 87,618 33,308 32,922 6,544 77,086 519,913 Loans secured by United States bonds and certificates: Feb. 21 55,871 11,564 9,600 9,909 4,943 6,080 5,394 103,730 Feb. 28 55,904 11,753 10,443 9,797 4,685 5,5.1.4 391 5,481 103,968 Mar.7 56,212 11,791 10,401 9,799 3,548 5,052 i 387 6,406 103,596 Mar.14 56,300 11,813 10,677 9,840 3,972 4,933 | 384 6,019 103,938 Other loans and investments: Feb. 21 509,851 108,050 159,159 248,795 101,818 149,188 13,957 ! 204,049 1,494,867 Feb. 28 513,050 107,547 160,402 245,237 101,641 149,149 13,838 i 200,436 1,491,300 Mar.7 506,885 108,065 161,447 246,019 104,774 148,674 13,980 207,431 1,497.275 Mar.14 522,735 110,938 161,359 247,439 106,868 147,848 13,786 208,227 1,519,200 Total loans and investments: Feb. 21 731,207 154,812 220,556 328,445 137,465 183,726 19,203 ! 277,746 2,053,160 Feb. 28 742,731 157,406 227,442 334,641 138,664 184,963 20,112 i 279,318 2,085,277 Mar.7 730,104 157,730 228,117 333,375 140,697 185,683 i 20,507 I 287,926 2,084,139 Mar.14 759,880 164,380 231,397 344,897 144,148 185,703 20,714 | 291,932 2,143,051 Reserve with Federal Reserve Bank: Feb.21 52,224 12,266 15,130 20,700 11,139 14,657 I 1,213 21,053 148,382 ' Feb. 28 , 53,593 12,017 16,442 22,563 9,678 13,918 1,199 19,737 149,147 Mar.7 53,198 13,024 14,670 21,836 11,073 14,359 1,290 19,181 148,631 Mar.14 54,794 13,198 16,825 22,930 13,307 14,515 1,883 19,431 156,883 Cash in vault: Feb. 21 16,128 5,139 7,024 9,993 3,279 5,441 512 6,814 54,330 Feb. 28 14,417 5,488 7,413 11,441 3,405 5,217 628 6,806 54,815 Mar.7 14,920 5,214 7,641 10,544 4,181 5,189 687 7; 240 55,616 Mar.14 15,712 5,413 7,268 11,690 5,421 565 7,638 57,356 Net demand deposits on which reserve is computed: Feb. 21 472,201 109,346 139,714 153,896 93,526 124,949 11,342 157,233 1,262,207 Feb. 28 464,009 106,561 141,591 152,429 93,038 124.612 11,009 156,878 1,250,127 Mar.7 478,612 95,619 140,297 151,322 91,936 118; 452 10,960 157,601 1,244,799 Mar.14 487,346 109,989 140,379 161,606 94,379 129,132 11,142 170,953 1,304,926 Time deposits: Feb. 21 89,904 13,100 49,862 161,944 23,008 36,022 5,429 94,332 473,601 Feb. 28 99,258 13,545 50,248 162,890 22,928 36,129 5,513 93,977 484,488 Mar.7 93,581 13,633 50,328 164,079 19,852 36,339 5,533 94,146 477,491 Mar. 14 93,543 14,554 50,395 165,290 23,408 36,412 5,484 93,715 482,801 Government deposits: Feb. 21 34,834 5,215 7,489 12,248 6,026 3,751 1,141 70,704 Feb. 28 33,824 7,218 11,122 18,731 6,620 5,239 1,085 83,839 Mar.7 22,397 5,886 9,313 13,907 5,649 5,169 1,226 63,547 Mar.14 20,393 8,526 11,788 14,773 8,294 5,857 996 70,627 1 Pittsburgh and Cincinnati. 5 Louisville, Memphis, and Little Rock. * Baltimore. 6 Omaha and Denver. s New Orleans, Jacksonville, and Birmingham. * El Paso. <Detroit. s Spokane, Portland, Seattle, and Salt Lake City. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

APEIL 1,1910. FEDERAL EESERVE BULLETIN. 403 IMPORTS AND EXPORTS OF GOLD AND SILVER. Gold imports and exports into and from the United States. [In thousands of dollars, i. c, 000 omitted.] T F e e e n n b d . d i n 2 a g 0 y . s Ei F e g e n h b d t . i n d 2 g 8 ay . s T M e e n n a d r. i d n a 1 g y 0 s . J T a o n t . a 1 l ,1 s 9 in 1 c 9 e . T 19 o 1 t 8 8 a , , - 1 , t 0 o J 1 a 8 M . n a . r 1 . , IMPORTS. Ore and base bullion . 384 299 323 3,012 1,693 Bullion, refined 99 75 223 1,019 3,210 United States coin 2,558 7 2,533 5,106 2,449 34 Total 3,041 381 3,079 9,137 7,386 EXPORTS. Domestic: Ore and base bullion . 1 16 United States mint or assay office bars 135 Bullion, refined . . .. . . .. 1 3,084 Coin 961 953 707 7,056 6,019 Total 961 953 707 7,193 9,149 Foreign coin '" 1 20 175 Total exports 961 954 707 7,213 9,324 Excess of gold imports over exports since Jan. 1,1919, §1,924,000. Excess of gold imports over exports since Aug. 1,1914, §1,073,330,000. Silver imports and exports into and from the United States. [In thousands of dollars, i. e., 000 omitted.] Ten days "Eight days Total Jan. 1 Total Jan. 1 Ten days ending ending to Feb. 28, to Feb. 28, ending Total since Feb. 20,1919. Feb. 28,1919. 1919. 1918. Mar. 10,1919. Jan. 1,1919. IMPORTS. Ore and base bullion 2,182 1,277 9,702 4,202 1,942 11,644 Bullion, refined 125 279 1,374 5,088 774 2,148 United States coin 18 12 120 152 11 131 Foreign coin 207 73 1,137 1,005 120 1,257 Total 2,532 1,641 12,333 10,447 2,847 15,180 EXPORTS. Domestic: Ore and base bullion 2 United States mint or assay office bars 3,852 7,371 31,175 7 6,957 38,132 Bullion, refined 9,761 1,103 19,826 12,034 3,537 23,363 Coin.... 135 9 242 158 57 299 Total 13,748 8,483 51,243 12,201 10,551 61,794 Foreign: Bullion, refined 269 451 490 301 752 Coin... 355 10 1,021 456 28 1,049 Total. 624 10 1,472 946 329 1,801 Total exports 14,372 8,493 52^715 13,147 10,880 63,595 Excess of silver exports over imports since Jan. 1,1919, $48,415,000. Excess of silver exports over imports since Aug. 1,1914, $328,175,000. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

404 FEDERAL RESERVE BULLETIN. APRIL 1, 1919. Estimated general stock of money money held by Treasury, and by the Federal Reserve system, and all other money in the United States, Mar. 1,1919. Amount per General stock U H n e it l e d d i n S t t a h t e es Held by or for H U el n d i t o e u d t s S id ta e t e t s he ca t p he it a U o n u it ts e i d de of money in the Treasury as Federal Reserve Treasury and States Treasury United States. G a o ss v e e t r s n o m f e t n h t e .i Ba a n g k e s n t a s. nd Fede s r y a s l t e R m e . serve a e n ra d l t R he e s F er e v d e system. «2 old coin* §3,084,213,002 $368,226,767 SI, 456,092,357 $421,234,734 Gold certificates 453,477,770 385,181,374 Standard silver dollars 349,335,930 "*"50," 288," 097" 81,165,206 Silver certificates 8,025,695 208,077,692 Subsidiary silver *242,*742,"373' 11,287,225 »2,994,278 228,460,870 Treasury notes of 1890 1,779,240 United States notes 346,681,016 12,866,438 * 54,695,510 279,119,068 Federal Reserve notes 2,678,607,950 36,090,813 167,232,605 2,475,284,532 Federal Reserve Bank notes. 142,840,180 6,196,330 8,007,285 128,636,565 National-bank notes 721,879,473 60,740,275 18,658,176 642,481,022 Total: Mar. 1,1919.. 7,566,299,924 545,695,945 2,169,183,676 4,851,420,303 $45.33 Feb. 1,1919.. 7,611,628,810 489,831,726 2,252,757,560 4,869,039,524 45.56 Jan. 1,1919... 7,780,793,606 454,948,160 2,220,705,767 5,105,139,679 47-83 Dec. 1,1918.. 7,669,576,580 416,383,232 2,123,208,487 5,129,984,861 48.13 Nov. 1,1918.. 7.590,173,171 399,321,725 2,125,198,801 5,065,652,645 47.59 Oct. 1,1918.. 7,391,008,277 380,246,203 2,084,774,897 4,925,987,177 46.34 Sept. 1,1918.. 7,092,955,371 369,937,060 2,070,371,803 4,652,646,508 43.83 Aug. 1,1918.. 390,798,058 2,054,455,993 4,449,835,748 41.97 Julyl,191S.. 6,742,225,784 356,124,750 2,018,361,825 4,367,739,209 41.31 Jan. 1,1918... 6,256,198,271 277,043,358 1,723,570,291 4,255,584,622 40.53 Apr. 1,1917.. 5,312,109,272 258,198,442 952,934,705 4,100,976,125 39.54 1 Includes reserve funds against issues of United States notes and Treasury notes of 1890 and redemption funds held against issues of nationalbank 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. 8 Includes standard silver dollars. •/& * Includes Treasury notes of 1890. DISCOUNT RATES. Discount rates of each Federal Reserve Bank approved by the Federal Reserve Board up to Mar. 81,1919. Maturities. Discounts. Trade acceptances. Secured by U. S. certificates of indebtedness or Liberty loan Federal Reserve Bank. W i c m n o b n c d i e l a t l o l a m h u a n t y t d i e k b e n s i s s r , e n . a 1 ' r g l 5 1 d 6 a t y o s . 60 61 d a t y o s 9 . 0 l t i A u v o p d r g e v a a a - r e s p l i y r c t e a s o 9 u r . n c l 0 d - k W i m n b b c d i e a t l o a m u h n n y d i k b d n s i s , e n s 1 ' . r g 5 1 d 6 a t y o s . 90 in I c d t l a o u y s 6 s i 0 v , e. in 6 c d 1 l a u t y o s s i v , 9 e 0 . collateral notes. Boston New York 1 Philadelphia Cleveland Richmond Atlanta Chicago St. Louis Minneapolis Kansas City Dallas San Francisco VRates for discounted bankers' acceptances maturing within 15 days, 4 per cent; within 16 to 60 days, 4£ per cent; and within 61 to 90 days, 4£ per cent. * Rate of 4 per cent on paper secured by fourth Liberty loan bonds where paper rediscounted has been taken by discounting member banks at rate not exceeding interest rate on bonds. NOTE I.—Acceptances purchased in open market, minimum rate 4 per cent. NOTE 2.—In case the 60-day trade acceptance rate is higher than the 15-day discount rate, trade acceptances maturing within 15 days will be taken at the lower rate. NOTE 3.—Whenever application is made by member banks for renewal of 15-day paper, the Federal Reserve Banks may charge a rate not exceeding that for 90-day paper of the same class. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

APEtL 1, 1919. FEDERAL BESEBVE BULLETIN. 405 OPERATION OF THE FEDERAL RESERVE CLEARING SYSTEM, FEB. 16,1919, TO MAR. 15, 1919. Ite c i m n it y s F ( d d e r a d a i w e ly r n a l a o v n e R ra e b g s a e e n ) r . k v s e Ite e i a n m r v a d e s l r i R a s d t g e r r e s i a c e ) w . t r v n o e u c t o s i n t i y d e b ( d a F a n e i k d ly s - To b R a t v a e a e n s l r k e a r s i g v t e e e i ) n m . d s i o s w t d r n i r c a t w Fe n ( d d e a r i o l a n y l Number. Amount. Number. ; Amount. Number. | Amount. Boston 15,591 $18,819,184 81,422 i 810,373.266 97,013 829,192,450 New York 19,952 54,660,662 126,919 ! 62,889,441 146,871 117,550,103 Philadelphia 22,578 26,087,102 43,391 : 5,291,512 65,969 31,378,614 Cleveland 5,426 6,596,556 64,553 23,025,657 69,979 I 29,622,213 Richmond 2,454 6,270,330 48,074 12,710,821 50,528 I 18,981,151 Atlanta 3,329 2,335,283 27,806 6,916,946 31,135 9,252,229 Chicago 18,333 23,574,000 62,108 11,718,000 80,441 35,292,000 St. Louis 6,438 8,085,305 9,914,963 43,064 18,000,268 Minneapolis 5,287 7,449,544 22,430 2,013,221 27,717 9,462,765 Kansas Citv 5,537 9,333,274 63,834 12,452,611 69,371 21,785,885 Dallas.....' 1,625 2,410,801 29,211 i 7,480,226 30,836 9,891,027 San Francisco 2,533 2,945,336 33,972 6,927,925 36,505 9,873,261 Totals: Feb. 16 to Mar. 15, 1919 109,083 168,567,377 640,346 171,714,589 749,429 340,281,966 Jan. 16 to Feb. 15,1919 90,944 198,935,424 599,951 156,360,759 690,895 355,296,183 Dec. 16,1918, to Jan. 15,1919.. 95,622 221,889,946 635,080 I 165,386,737 730,702 387,276,683 Feb. 16 to Mar. 15,1918 51,408 153,701,375 259,531 • 113,134,162 310,939 266,835,537 ! ! I te o r t n h s e r d ra d w is n tr o ic n t s b an ( d k a s i i l n y Ite D m a s r e h n a t n d b le a d n k b y b a o n t d h Ite u m re s r d o r f a w U n n it o e n d T S r t e a a t s e - s \ ! X-TNumber Number Number average). branches (daily aver- (daily average). of of non- of nonmember membor member banks in banks on banks in district. par list. district. Number. Amount. Number. | Amount. Number. Amount. •i- Boston 9,618 89,749,614 8,995 52,723,229 424 244 244 New York 35,859 14,712,220 46,452 20,703,209 722 321 321 Philadelphia 22,970 8,575,328 8,340 4,422,281 656 363 425 Cleveland 3,616 3,960,583 3,069 32,133,165 6,539 1,688,235 801 1,129 Richmond 6,005 4,862,273 140 215,535 2,836 553366,447700 568 329 1,518 Atlanta 3,277 3,040,267 3,951 1,922,406 4,800 2,543,815j 425 237 1,566 Chicago 6,428 1,186,000 333 212,000 13,881 4,536,000 ! 1,340 2,599 4,175 St. Louis 864 333,550 1,197 457,090 7,598 1,213,919 ! 513 1,275 2,571 Minneapolis ! 1,221 1,085,385 888 239,058 ! 873 1,233 2,842 Kansas Citv i 6,907 5,220,395 3,040 1,833,434 5,083 464,704; 995 2,193 3,227 Dallas ". ! 3,392 1,575,152 1,178 184,839 3,853 441,353 805 270 1,209 San Francisco ; 1,459,792 2,139 2,815,800 5,298 7,234,232 ! 639 1,040 1,201 Totals: I Feb. 16 to Mar. 15,1919 1 100,963 55,760,559 15,047 9,774,269 114,563 46,746,505 ; 8,7S2 10,905 20,428 Jan. 16 to Feb. 15,1919 1 89,972 53,431,53!) 12,807 11,036,400 126,051 63,221,002 ! 8,717 10,622 20,348 Dec. 16,1918, to Jan. 15,1919... 00,828 64,079,660 13,662 10,080,440 77,282 37,753,800 i 8,691 10,342 Feb. 16 to Mar. 15,1918.... 51,259 48,556,709 7,700 6,413,071 58,991 25,827,757 i 8,013 9,425 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

406 FEDERAL RESERVE BULLETIN. APRIL 1,1919. LOANS AND DISCOUNTS OF STATE BANK MEMBERS. Classification of loans and discounts of 930 State banks and trust companies, members of the Federal Reserve system, as shown by their condition reports for Dec. 31, 1918. [Tn thousands of dollars; i. e., 000 omitted.] j i i " b D N a ( n i o 3 s k t . 1 r s i 1 c ), t D b N a i ( s n o 1 t . k 0 r 1 i s 2 c ) t . D b N a i ( s n o 2 t . k r 9 i s 3 c ) t . D b N a i ( s n o 6 t k . r 6 i s 4 c ) t . D b N a i ( s o n 3 . t k 7 ri s 5 c ) t . D N i ( s o 5 t . 4 ri 6 ct D b N a i ( o s n 2 . t 8 k r 8 i 7 s c ) t . D b N a i ( s n o 4 . t k 4 ri s 8 c ) t . D b N a i ( n s o 7 . t k 0 ri s 9 c ) t . D b N a i o ( s n 2 . t k 7 r 1 i s c 0 ) t . D b N a i o ( s n . 9 t k r 7 i s 1 c 1 ) t . ; D b N a i o ( n s . 8 t k 6 r s 1 ic 2 ). t U S T ( n t o 9 a i t 3 t t a e e 0 l s d , "I On demand, not secured by collateral 23,166 32,059 9,557 10,753 2,188 5,625 23,783 9,541 2,648 3,085 2,256 6,147 130,808- On demand, secured by Liberty bonds and United States Treasury certificates of indebtedness 2,800 20,294 1,748 1,944 482 856 5,492 2,743 558 40 123 232 37,312 On demand, secured by other collateral. 53,819 464,448 62,423 63,080 10,154 30,527 104,150 39,209 1,880 4,264 2,873 j 5,902 842,729 On time, not secured by collateral 151,250 474,053 20,133 75,964 28,679 38,478 :268,420 60,722 20,925 18,085 10,621 •; 39,734 1,207,064 On time, secured by Liberty bonds and United States Treasury certificates of indebtedness 13,273 195,717 18,709 j 24,452 4,191 3,270 : 27,503 4,949 1,403 2,307 1,166 ! 3,330 300,270 On time, secured by other i collateral 48,834 262,200 16,101 I 41,848 12,408 29,155 ;138,899 44,598 12,015 17,782 15,567 | 21,288 j 660,695 Secured by real estate mortgages or other real estate liens and deeds 29,257 56,954 4,349 65,673 5,215 9,275 |l38,773 19,027 11,228 5,805 3,805 13,004 362,365 Acceptances of other banks discounted 3,064 48,204 146 1,318 190 j 1,867 101 1 805 55,702 Acceptances of this bank purchased or discounted 581 | 11,159 236 744 291 2,230 ; 710 1,285 163 192 17,597 Loans and discounts not classified 16,166 208 | 259 65 10 133 16,841 Total shown by reports..326,044 1,581,254 133,402 285,776 63,816 119,606 709,856 182,074 50,758 51,445 36,585 90,767 3,631,383 I^ess adjustment due to inclusion of rediscounts in loan classification by some banks. 117 240 10 157 ! 21 160 705 Total loans and discounts. 325,927 il, 581,254 133,162 285,776 63,806 119,449 709,835 182,074 50,758 51,285 36,585 90,767 3,630,678 I Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

INDEX, Acceptances: Page. England: Bankers', growth in volume of 309 Exchange situation in 311 Banks granted authority to accept up to 100 Practice of handling bills of exchange in 352 per cent of capital and surplus 357 Failures, commercial, reported 359 Belgian acceptance credits 309 Federal Advisory Council, conference of committee Holdings February 28, distributed by classes of, with governors of Federal Reserve Banks 313 of accepting institutions 392 Federal Reserve Banks: Purchases during February, also average rates Addition to weekly statement of item showing and maturities 388, 391 rediscounts between 311 Security covering acceptances in excess of 10 Condition of 310, 393 per cent limitation of section 13 362,364 During period covering fourth Liberty Agricultural paper held on last Friday in February. 391 loan 324 Babson's business barometer 331 Resources and liabilities of 393-396 Bank of France: Federal Reserve note account of Federal Reserve :^i Charter of, law renewing 339 Banks and agents 397, 398 al War operations of 337 Fiduciary powers: Bank transactions—debits to deposit account 369-371 Granted to national banks 359, 360 Belgian acceptance credits 309 Right of national banks in Hawaii to exercise.. 366 Bills of exchange, practice of handling, in foreign Section 11 (k) as amended, ruling on 362, 363 countries 345-357 Foreign banks, credits in war 323 "Bills payable" item added to weekly statement Foreign branches of American banks, list of 357 of New York clearing house banks 311 Foreign branches of national banks, loans by, upon Bonds offered for subscription by War Finance security of growing sugar crop 362 Corporation ." 308 Foreign exchange situation 311-313 Branches, foreign, of American banks 357 Lira exchange, restrictions revolted as to sale or Brookmire economic service 332 purchase of 311 Business conditions: France: Indexes of, development of 331-336 Bank of— Summary of, as reported by Federal Reserve Law renewing charter of 339 agents 314-323 War operations of 337 Canadian indexes of business conditions 334 Exchange situation in 312 Certificates of indebtedness: Practice of handling bills of exchange in 354 Amounts of loans upon security of, carried by Gold imports and exports 313,403 banks throughout the country 306 Governors of Federal Reserve Banks, conference of, Income tax, proceeds of, used in settling outwith Board . 313 standing certificates 306 Guatemala, practice of handling bills of exchange Issued in anticipation of fifth liberty loan 304 in 346 Chart showing number of discounting member Hawaii, right oS; national banks in, to exercise fidubanks and average discounts held by all Federal ciary powers 366 Reserve Banks, 1917-1919 387 Honduras, practice of handling bills of exchange in. 34.8 Charters issued to national banks during March 358 Imports and exports of gold and silver 403 Check clearing and collection system, operation of.. 405 Clayton Act, applicability of section 8 to banks Income tax: located in suburban districts 362 First installment paid into Treasury 306 Clearing house bank debits 369-371 Use of proceeds in payment of outstanding Conversion privilege extended to first Liberty loan. 329 certificates of indebtedness 306 Costa Rica, -practice of handling bills of exchange in. 345 Indexes of business conditions: Credits, foreign-bank, in war 323 Babson's business barometer 331 Crops, growing, loans on, by foreign branch of Brookmire economic service 332 national bank ". 362 Persons, Prof. Warren M., work ot", on 333 Debits to deposit accounts, weekly figures of 369-371 Canadian indexes 334 Denmark, practice of handling bills of exchange in.. 351 Index numbers of production of raw materials, by Discount and interest rates prevailing in various Dr. Wesley C. Mitchell 336 cite 376-378 Index of wholesale prices 372-375 Disco lint operations: Industrial Board of Department of Commerce, state- December, 1918, to February, 1919, by rates ment of organization and purpose 341 charged 392 Inflation of bank credit 306 February, by classes of paper 388-390 Interest and discount rates prevailing in various Number of member banks accommodated since cities 376-378 January, 1917 386 Investment operations of Federal Reserve Banks Chart showing 387 during February 389 Discount rate3 in effect 404 Law department: Earning assets of Federal Reserve Banks, average Section 11 (k) of the Federal Reserve Act 363 amount of each class held during February 390 Security covering acceptances in excess of 10 Earnings of Federal Reserve Banks: per cent limitation of section 13 864 Anrwial rate based on February, 1919, returns.. 390 Right of national bank located in Hawaii to February, from each class of earning assets 390 exercise fiduciary powers 366 i Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

II INDEX. Law department—Continued. Rediscount of paper secured by Government obli- Amendments to State banking laws relating to gations as authorized by the act approved March State bank membership... -^ 366 3, 1919 361 Liberty bonds, loans upon security of, amounts of, Rediscounting at Federal Reserve Banks, caution carried by banks throughout the country 306 against overdoing 311 Liberty loan: Resources and liabilities: First, conversion privilege extended to 329 Federal Reserve Banks 393-396 Fourth, condition of Federal Reserve Banks Member banks 399-4021 during period of floating of 324 Review of the month: Fifth- The fifth Liberty loan 303-306 Certificates of indebtedness issued in antici- Notes versus bonds -:. 304 pation of 304 Certificates of indebtedness 304,306 Notes, short-term, versus bonds 304,306 Needs of the Government 305 Obligation resting upon community to sub- Proceeds of income tax turned into Treasury.. 306 scribe for new notes 305 Railroad financing 307 Terms of, as announced by the Secretary Bonds of War Finance Corporation 308 of the Treasury 303 Private financing 308 Liquidation of war paper, reports by Federal Re- Belgian industrial credits 309 serve agents relative to 310, 325-329 Condition of Federal Reserve and member Lira exchange, restrictions revoked as to sale or pur- banks 310 chase of... 311 Price situation 310 Live stock paper held on last Friday in February.. 391 Rediscounts and bills payable 311 Loans and discounts of State member banks on De- Foreign exchange situation 311,312 cember 31, 1918 407 Gold imports and exports 313 London Economist, article from, on bank credits in Conference of governors of Federal Reserve war ' 323 Banks 313 Maturities: Rulings of the Federal Reserve Board: Average of acceptances purchased during Feb- Rediscount of paper secured by Government ruary 389,391 obligations as authorized by the act approved Average of bills discounted during February. 388,390 March 3, 1919 361 Of the several classes of earning assets each Section 11 (k) of the Federal Reserve Act 362 Friday 396 Security covering acceptances in excess of 10 per Member banks: cent limitation of section 13 362 Condition reports of banks in selected Loans by branch banks upon the security of cities 310,399-402 growing sugar crop *. 362 Loans and discounts of State members, Decem- Applicability of section 8 of the Clayton Antiber 31, 1918 406 trust Act to banks located in suburban dis- Number of, discounting during February 388 tricts ' 362 Number accommodated through discount oper- Silver, imports and exports of 403 ations, by months, since January, 1917 386 South Dakota, amendments to banking laws of, relat- Chart showing 387 ing to State bank membership .". 367 Number in system at end of each month, 1917- Spain, practice of handling bills of exchange in 356 1919 386 State bank members, classification of loans and dis- Number in system February 28 388 counts of 406 Mitchell, Dr. Wesley C, index numbers of production and prices of raw materials prepared by. ... 336 State banks: Money, stock of, in the United States 404 Admitted to system during March 358 National banks: Amendments to State laws relative to member- Charters issued to, during the month 358 ship of 366-368 Fiduciary powers issued to 359-360 Sterling exchange, suspension of purchases by Brit- Nicaragua, practice of handling bills of exchange in. 349 ish Government 311 North Carolina, amendment to banking laws of, re- Sugar crop, growing, loans on, by foreign branch of lating to State bank membership 366 national bank.. .1 362 Notes, short-term, in lieu of bonds, to be offered in Tennessee, amendments to banking laws of, relating fifth Liberty loan 303-305 to State bank membership 367 Open-market operations—acceptances, United Trade, physical volume of 379-385 States bonds, certificates of indebtedness, and Treasury, expenditures of 307 municipal warrants purchased during February. 388, 389 War Finance Corporation: Persons, Prof. Warren M., work of, in construction Bonds offered for subscription 308 of a business barometer 333 Financing of railroads by 307 Physical volume of trade 379-385 War paper: Portugal, practice of handling bills of exchange in.. 355 Amounts carried by banks throughout the coun- Prices: try \ 306 Index of wholesale 372-375 Amount discounted during February 390 Recession in general level of 310 Amount held on last Friday in February 391 Statement of Industrial Board of Department Reports of Federal Reserve agents relative to of Commerce relative to 341 liquidation of 310, 325-329 Railroads: West Virginia, amendments to banking laws of, re- Aid in financing '. 307 lating to State bank membership 367 Eligibility of paper of, for rediscount 308 Wholesale prices, index of 372-375 Statement of Director General Hines relative to Wyoming, amendments to banking laws of, relafinancing of 307 tive to State bank membership 368 o Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis