Federal Reserve Bulletin, 1919-05

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

FEDERAL RESERVE BOARD. EX OFPICIO MEMBERS. W. P. G. HARDING, Governor. ALBERT STRAUSS, Vice Governor. CARTER GLASS, Secretary of the Treasury, Chairman. ADOLPH 0. MILLER. CHARLES S. HAMLIN. JOHN SKELTON WILLIAMS, Comptroller of the Currency. J. A. BRODERICK, Secretary. GEORGE L. HARRISON, General Counsel. W. T. CHAPMAN, Assistant Secretary. II. PARKER WILLIS, W. M. IMLAY, Fiscal Agent. Director, Division of Analysis and Research. M. JACOBSON, Statistician. F. I. KENT, Director, Division of Foreign Exchange. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

OFFICERS OF FEDERAL RESERVE BANES. Federal Reserve Bank of— Chairman. Governor. Deputy governor. ('ashler. Boston Frederic H. Curtiss... Chas. A. Morse.. Chas. E. Spencer, jr.. C. C. Bullen. 0. C. Biillen New York. Pierre Jay Benj. Strong, jr. R. H. Treman L. II. llendricks. J. IL Case L. F. Sailer J. F. Curtis Philadelphia i R. L. Austin. E. P. Passmore. Wm. II. Hutt, jr W. A. Dyer. Cleveland : I). C. Wills... E. 11. Fancher. M. J. Fleming x H. G. Davis. Frank J. Zurlinden l. Richmond i Cald well Hard y George J. Seay. C. A. Peple Geo. H. Keesee. R. II. Broaddufl Atlanta j Joseph A. McCord....j M. B. Wellborn. . L. C. Adelson M. W. Bell. Chicago ! Wm. A. lleath j J. B. McDoiigal.. C. R. McKay S. B. Cramer. 0. G, McCIoud1.... St. Louis ! Win. McO. Martin IXC. Biggs 0. M. Attebery J. W. White. Minneapolis j John IT. Rich Theodore Wold... R. A. Young 8. S. Cook. Kansas City Asa E. Ramsay J.Z. Miller, jr... C. A. Worthington x. J. W. Helm.2 Dallas Wm. F. Ramsey R. L. Van Zandt. Lynn i\ Talley Lynn P. Tallev. San Francisco I John Perrin J. U. Calkins \Vm. A. Dav3I Ira Clerk. i Assistant to governor. 2 Acting cashier. s Assistant deputy governor. MANAGERS OF BRANCHES OF FEDERAL RESERVE BANKS. Federal Reserve Bank of— Manager. Federal Reserve Bank of— .Manager. New York: St. Louis: Buffalo branch Hay M. Gidney. Louisville branch W. P. Kincheloe. Memphis branch J. J. Heilin. Cleveland: Little Rock branch. A. F. Bailey. Cincinnati branch L. W. Manning. Pittsburgh branch Geo. De Camp. Kansas City: Omaha branch 0. T. Eastman. Richmond: Denver branch C. A. Burkhardt. Baltimore branch Morton M. Prentis. Dallas: Atlanta: El Paso branch Sam Ft. Lawder. New Orleans branch Marcus Walker. Jacksonville branch Geo. R. De Saussure. San Francisco: Birmingham branch A. E, Walker. Salt Lake Citv branch.. C. IT. Stewart. Seattle branch 0. J. Shepherd. Chicago: Spokane branch C. A. McLean. Detroit branch R. B. Locke. Portland branch C. L. Lamping. SUBSCRIPTION PRICE OF BULLETIN. The Federal Reserve Bulletin is distributed without charge to member banks of the system and to the officers and directors of Federal Reserve Banks. In sending the Bulletin to others the Board feels that a subscription should be required. It has accordingly fixed a subscription price of §2 per annum. Single copies will be sold at 20 cents. Foreign postage should be added when it will be required. Remittances should be made to the Federal Reserve Board. Member banks desiring to have the Bulletin supplied to their officers and directors may have it sent to not less than 10 names at a subscription price of $1 per annum. No complete sets of the Bulletin for 1915, 1916, or 1917 are available. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

TABLE OF CONTENTS. Page. Review of the month 407 Business and financial conditions during April 416 Special reports by Federal Reserve agents 420 National bank deposits and holdings of ¥nited States securities and war paper 428 Rates of interest in the New York market 429 War operations of the German Reichsbank 430 Central banking in Belgium during the period of German occupation 435 Regulation F relating to trust powers of national banks 438 Acceptance liabilities of member banks 440 Loans on security of Liberty bonds 441 Victory Liberty loan circular issued by the Treasury Department 442 Condition of national banks 446 Practice of handling bills of exchange in foreign countries 447 Comparative statement showing principal assets and liabilities of leading banks of issue 463 Commercial failures reported 464 State banks and trust companies admitted to the system during the month 465 Charters issued to national banks during the month 465 Foreign branches of national banks 466 Banks granted authority to accept up to 100 per cent of capital and surplus.- 466 Fiduciary powers granted to national banks 466 Rulings of the Federal Reserve Board 467 Division of Foreign Exchange 469 Law Department 471 Bank transactions during March-April 473 Wholesale prices in various countries 476 Wholesale prices in the United States 479 Discount and interest rates prevailing in various cities 482 Physical volume of trade 484 Discount and open market operations of the Federal Reserve Banks 492 Resources and liabilities of the Federal Reserve Banks 498 Federal Reserve note account of Federal Reserve Banks and agents 502 Member bank condition statement -. 505 Imports and exports of gold and silver 509 Estimated stock of money in the United States 510 Discount rates in effect - 510 Operation of the Federal Reserve clearing system 511 Foreign exchange rates 512 Abstract of condition of State member banks : 513 IV Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FEDERAL RESERVE BULLETIN VOL. 5 MAY 1, 1919. No. 5 REVIEW OF THE MONTH. Amounts of Treasury certificates issued in anticipation of—Continued. As announced in the last issue of the FEDERAL Victory loan, due—Continued. RESERVE BULLETIN, the fifth Aug. 12 $542,197,000 Sept. 9 646,025,000 Progress with victory loan, & t or Oct. 7 591,308,000 the Victory loan. . . J ; consisting of 84,500,000,000 of Total 5,544,151,500 notes, has been offered to the public for general subscriptions, the campaign beginning on April June, 1919, tax payments, due June 16. 729, 897,000 21 and to end on May 10. The initial response Installment payments on account of in all parts of the country bore out the ex- Victory loan due on or prior to— pectation already expressed that the new notes May 10 450, 000, 000 would make a wide appeal both to those July 15 450,000,000 who regarded it as a patriotic duty to sub- Aug. 12 900,000,000 scribe and to those who recognized the un- Sept. 9 900, 000, 000 Oct. 7 900, 000, 000 usual investment value of the new securities. Nov. 11 900, 000, 000 The fact that the issue of notes was about 25 per cent smaller than had been expected Total 4, 500, 000, 000 had the effect of encouraging subscriptions, the amount offered constituting a far smaller bur- Installment payments on account of income and excess profits taxes due den on the market than would the larger issue (amounts estimated)— which was first suggested. Juno 15 1,000,000,000 With the proceeds of the Victory Liberty Sept. 15 1,000,000,000 loan in hand, the Treasury Conditioner . ^ Dec. 15 1, 000, 000, 000 D t m fc u Treasury. L From this it will be seen that practically meet maturing certificates ol the entire incoming funds of the department indebtedness placed in the hands of the banks will be needed for the purpose of meeting the prior to the actual offering of the notes. In steadily recurring demands brought to bear the following table is furnished a statement of upon it for maturing certificates of indebtedthe certificates now outstanding, with dates of ness and for current expenditure which is now maturity, as well as of the dates and amounts of running at about $1,400,000,000 per month. the installments payable on the Victory loan Any further increase in expense will accordand of the dates and probable amounts payable ingly have to be met from the proceeds of new on income-tax account: financing, involving the sale of additional notes Amounts of Treasury certificates issued in or bonds as circumstances may require. It anticipation of— Victory loan, due— was this situation which was referred to by May 20 $572,494,000 the Secretary of the Treasury in his statement June 3 751,684,500 relative to the Victory loan, in which he said: June 17 600,101,500 As the remaining war bills are presented, further borrow- Julyl 687,381,500 ing must fee done. I anticipate that the requirements of July 15 620,578,500 the Government in excess of the amount of taxes and July 29 532,381,500 407 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

408 FEDERAL RESERVE BULLETIN, MAY 1, 1919. other income can, in view of the decreasing scale of banking and financial circles to maintain their expenditure, be readily financed by the issue of Treasury parity, thus showing that the Government in certificates from time to time as heretofore, which may be fixing the terms of the notes has adjusted ultimately refunded by the issue of notes or bonds without itself to the prevailing price for capital. This the aid of another great popular campaign, such as has characterized the Liberty loans. is a new situation and one of which account In view of the fact that the -fifth loan is, as must be taken in estimating the probable definitely announced by the Secretary, the future development of borrowing and investlast of the series of great popular war loans, it ment under existing conditions. The question will be necessary to determine a new method now arises whether the figure paid by the Govof providing for a considerable volume of ernment may be taken as indicating that there Government expenses between now and the has occurred a readjustment of the rate of close of the calendar year 1919. What this return on capital and that for- some time to method will be has been only very broadly come a higher rate of interest is to be expected. indicated by the Secretary of the Treasury in The whole investment situation has been the passage already quoted. Whatever the complicated bv such a variety amount may actually be when Government The investment - / , • " , expenditures have been positively determined, situation factors since.we entered and whatever may be the method employed for the war that the shrinkage in selling the notes or bonds, the necessity will re- values sustained by many of our leading main of placing upon the market by some investment securities may not safely of itself means a very considerable amount, and allow- be taken as an indication of recapitalization ance for this demand must accordingly be or adjustment to a new level of interest remade in all calculations relating to financial turn. Subsequent to the conclusion of the conditions during the remainder of this calen- armistice and prior to the placing of the fifth dar year. Liberty loan there was an interruption to nor- With the offering of the fifth loan the Fed- mal development of business, due to the fact Government as eral Government appears as a that whereas war demands had been suspended, a commercial bor- competitor of private enter- peace demands had not }ret begun to make rower, prises which are in the market themselves effectively felt. It was an epoch of for capital. In former loans the rate of interest " readjustment" and of transition from war to established by the Government has been, at peace. The fifth loan marks, financially speakleast for the time being, below that recognized ing, the close of this transition period, and by the market as rendering a commercial rate future sales of securities, whether governof return on capital investment. This is mentally or privately issued, will have to be addemonstrated by the fact that issues of all justed to the new basis of yield. On the whole, the preceding loans have sold below par, that this alteration is a desirable change in the which retained its value best being the first conditions which have heretofore existed and or original Liberty loan issued at 3| per cent gives promise of the early restoration of with complete tax exemption. But it has stability and normal equilibrium in the investbeen true that in proportion as the Government ment market. It probably means also that securities lost their tax exemption privileges the Government's offerings of securities will they declined in value on the market, notwith- be more and more taken by investors who standing that the rates were raised from 3J purchase them because they desire to hold and per cent for the first loan to 4J per cent for retain them. the fourth loan. The new Victory notes, The entry of the Government into the investissued under the fifth loan offering, are ex- ment market upon what may be regarded as pected not only by the Government but in practically a normal basis synchronizes with the reopening of industrial activity upon a Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MAY 1, 1919. FEDERAL RESERVE BULLETIN. 409 substantially parallel footing. The close of the outlook for heavy demand for foodstuffs abroad, month of April finds business apparently read- indicated by those conversant with European justed to the new circumstances, at least tempo- problems. rarily, and ready to proceed with current ac- Even if the Government should be obliged tivities in the belief that existing conditions to carry some burden, due to its guaranty of will not, for a reasonable time at least, be very the price of wheat, this would not alter the fundamaterially altered. This situation is reported mental influence that has for many years past to the Board by Federal Reserve agents from been exerted by a great crop upon prosperit}^ all parts of the country, it being their view that and business the country over. On the conthe present state of things is beginning to be trary, it tends to stimulate the farmer, through recognized as, in effect, "normal" for the time. the promise of an assured price for his yield, The development of business during the and will doubtless have the effect of " making month of April has been en- trade good" in all those parts of the country bu D si e n v e e s l s o . p ment of CQ ° m to This ig indicated where the purchasing power of the farmer is the strongest element in ordinary business by the reports received by the demand. Federal Reserve Board from Federal Reserve The fact reported by many Federal Reserve agents throughout the country, which say that agents that the business comnot only has there been an increasing ability to absorb the floating supply of labor, but that in 7 ? many sections of the country the resumption thought that it may profitof industry and the development of business ably await a further considerable reduction in activity are distinctly promising. In the East prices and is now contenting itself with the there has been a tendency to resume the indevelopment of trade along lines dependent vestment of capital in building, a fact which upon at least the temporary maintenance of has meant renewed activity in real estate operaexisting levels, indicates that the "readjusttions, thus promising relief from the conditions ment" that had been expected ever since the of congestion which had afforded a threat of conclusion of the armistice can not, under some serious discomfort and danger to the existing conditions, be as rapid and thorough as city populations. While in basic industries had been hoped and thought. The decline of the restoration of full business activity is slow prices which has already occurred has been and inadequate, the outlook is to-day better chiefly confined to relatively few basic comthan at any time since the conclusion of the modities, and while these enter extensively as armistice. One thing that has materially asmaterials of production into the manufacture sisted the recovery of a normal tone by busiof consumable goods, competition has not yet ness has been the promising crop outlook. served to restore the level of general prices at According to the forecast of agricultural condiretail to even the new basis which has been tions issued by the Department of Agriculture, reached in the underlying or essential lines rethe condition of winter wheat at the opening of ferred to. On the other hand, world condi- April was 99.87 per cent, or the largest percenttions have been such as either to hold certain age ever recorded on the largest acreage ever classes of prices practically stable or even in planted in the United States. This promise, if some cases to bring about a slight upward realized, should bring about a gross yield of trend. Particularly has this been true in some 837,000,000 bushels of winter wheat. The instances where, through Government control, situation, however, which at the time of the the price level had been held down to a basis armistice, it was feared, might bring with it a lower than that which it would naturally have serious financial problem appears to be in a assumed. The net result, as shown in the fair way of being relieved by reason of the Board's price index, therefore, is a slight ad- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

410 FEDERAL BESEEVE BULLETIN". MAY 1, 1919. vance in the general level. This bears out the year. Further, the revival which is beginning view often expressed in the FEDERAL RESERVE in the building trades appears to afford addi- BULLETIN that the underlying and most gen- tional evidence of the same kind. Against eral factor tending to sustain the present high such a belief is the fact that the basic trades, level of values is the credit and banking situa- such as steel manufacture, copper mining, and tion, inflated as it is throughout the world. others, have not by any means been restored So long as the condition of inflation referred to a normal condition but are still running, and to continues to exist as at present, it must be apparently likely to run for some time to come f expected that reductions of price will occur upon a very much reduced schedule of hours and slowly as a result of changes in the demand output. It is, moreover, to be noted that in for and supply of commodities. This will in thoseindirstries in which price cutting has been some cases bring about reductions in the most thorough and effective, as in some of the levels of values, but in others will produce textiles, the revival of demand and the restocorresponding and offsetting variations in the ration of normal conditions has been most comopposite direction. Prices will thus be subject plete and apparently stable. The less immedito temporary oscillations, but in order to bring ate future of industry and the basis upon which about any broad and far-reaching readjust- industry is to be carried on, thus remains unment affecting the relationship of all com- settled just as it for some time past has been* modities to the unit of purchasing power, in- The restoration of the final balance between flated credit conditions must be eliminated, prices, wages, and consumption is deferred and and the business community must be placed the manner and time of its working out will deupon practically the footing in relation to pend much upon conditions of international credit and money which it is normally to competition and the restoration of national occupy. solvency in the principal countries of the world* Index number changes for the month of In the readjustment which has thus far taken place, remuneration of labor March and such information as a&es ail lci" has been very little changed, . ° n is obtainable for the month of boftrp. Some reductions of wages have April indicate that the downoccurred either directly or indirectly, but on ward movement of the price level has been the whole wages have continued on the war arrested. The Bureau of Labor's index number level. Indeed, some of the most important for wholesale prices showed 200 as against 197 readjustments of prices that have occurred in for February, while reports of Federal Reserve basic industries have been made without waiting agents up to about the middle of April indicate upon readjustment of "labor costs.7' There a higher level of prices in various lines. In is little present indication that labor costs foodstuffs particularly the apparent tendency will experience much change during the next to decline has been more than offset, and there few months, and the problem of further in- is again an observed tendency to advance. dustrial and business readjustment is thus re- These changes seem S3^mpifcomatic of revival duced in effect to the question whether general of demand which had been partially suspended demand will be sustained at present levels in as the result of uncertainty and hesitation degree sufficient to afford employment to both after the conclusion of the armistice. They labor and capital. Some factors which have once more indicate what has often been been observed during the past month seem to referred to in the BULLETIN—that permasupport such a view. Retail trade throughout nent reduction of prices to anything approachthe country is almost uniformly reported good, ing the old normal level can not be expected many establishments stating that it is largely to occur without a readjustment of the volin excess of the corresponding month of last ume of banking credit to correspond with. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MAY 1, 1919. FEDERAL RESERVE BULLETIN. 411 the current volume of commerce and business permanent factor in the situation, pending the as reflected in the offerings of liquid commercial time when banking policies have been so depaper. One factor urgently necessary in effect- veloped and applied in practice as to bring ing such a readjustment or reorganization is about the restoration of prices to a stable and the absorption of Government securities and normal basis. their elimination from the investment holdings Ever since the suspension of the "pegging" of the banks. According to Federal Reserve of exchange there has been dis- Importatfons . . agents, it may be possible to effect such an { f } ff fa and prices. & Improvement of bank investments by the end have upon our trade with Great of the current year. Whenever the time may Britain. The view has been expressed in be, it will not be reasonable until then to look some quarters that the resulting state of the for any very marked readjustment of the general exchanges would lead to heavy exportation of price level. Individual prices will fluctuate, goods to the United States, the proceeds and some will fall as the result of temporary thereof to be available to pay for or settle changes in supply and demand or in conseoutstanding interest claims and perhaps acquence of special conditions of overproduction cruing installments of principal obligations, or, or undersupply in given lines. Such fluctuaat all events, to liquidate new and heavy tions in one direction will tend to be offset by purchases of material from this country. corresponding variations in others, and the Developments during the past few weeks general level of prices will remain substantially have raised a very serious doubt how far any the same as before. The problem now before such movement is to be expected. In many the community is that of bringing about a lines European costs are now apparent^ readjustment of prices to the normal volume of higher than in the United States, this being credit, and this is a task which can not be true of textiles and other items in which accomplished save during a period of time suf- Great Britain seemed formerly to enjoy a ficient to permit the restoration of bankers7 decided competitive advantage. The existence credits to a normal position. of high money costs abroad will necessarily The readjustment of business to a new price alter the competitive situation which had basis is, however, proceeding, and the increased existed before the war, and will raise the activity of trade due to the revival of purchas- question how foreign countries are actually to ing under the prospective great increase in pay off their indebtedness unless the price agricultural output and the general disposition situation is favorable to shipments of goods to throughout the country to abandon the atti- the United States. Adjustment of internatude of hesitation and postponement, which tional price levels to the altered conditions of has been characteristic for some time past, has the different countries is a necessary step rendered the question of control of prices by to the readjustment of international trade public authority less urgent than it seemed to on a stable basis. Normally there would be be a few weeks ago. What is now happening a division of labor or production between seems to indicate that business will, after a countries such as to give to each a comparaperiod of initial readjustment in prices, pro- tive advantage in those industries for which ceed upon a level not far removed from that it was relatively most favorably circumstanced, established during the war, leaving the question even though there might be other countries as to the ultimate level of prices to the future which possessed an absolutely greater advanand to more slowly acting forces. The prob- tage. In the present instance, the difficulty lem of strengthening the structure of credit in the case lies in the fact that the United and of eliminating from that structure all States has already reached a position where elements of weakness will then continue as a it is able to produce more of the goods 1X5631—19 2 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

412 FEDERAL RESERVE BULLETIN. MAY 1, 1919. which are wanted by its consumers and than in the opposite direction. The question which formed the basis of much of its interna- whether European enterprises will find it tional trade, while it of course is the chief worth while to pay what they must in order source of supply at present for the food surplus to obtain the use of funds originating in the representing the difference between consump- United States, is a new problem. Closely tion and production which is needed in Great related to the price at which capital can be Britain, as well as many of the raw materials obtained is the further question of the basis on such as cotton and copper which Great Britain which such capital can be converted into goods and other countries must have in order to at price levels now prevailing in the American reestablish their industry. market. If the goods are deemed essential, Recognizing the fact that foreign countries even at the prevailing level of prices, the are not now in a position to question of borrowing capital at correspond- A local market United ingly high charges may be regarded as merely buy fredy from the te foreign securi- g^ on ^ ^ rf ^ one element in the question of purchase and rent funds, discussion has been sale, as applied to the goods themselves. To active during the past few weeks with respect the extent that the imported goods, therefore, to the methods to be employed in the main- are of an ''essential" character—that is to say, tenance of our export trade. There has been needed for immediately necessary purposes a general expression of opinion to the effect whose importance is so great as to warrant that such maintenance must necessarily be the purchase of the needed materials under dependent upon som© form of financing in the almost any conditions, the price charged for the United States. The funds placed by Congress use of capital employed must be regarded as at the disposal of the Treasury Department simply one element in the necessary and inevfor use in extending accommodation to foreign itable cost of obtaining essential materials for Governments are now nearly absorbed. It the reconstruction of industry. would appear, therefore, to be one of the devel- In connection with the question of methods opments to be expected in the near future that for the financing of export private capital should in some way be applied "Investment through the distributrusts." tr. ad n ». to the financing of exportation to foreign countion ol foreign securities to tries. One plan that has been suggested has American buyers, it has been several times been that of establishing a satisfactory marsuggested within the past few weeks that there ket in the United States for the purchase and be established in the United States "investabsorption of foreign securities. The estabment trusts/' similar to those well understood lishment of such a market will inevitably call in Europe. Indeed, a beginning has already for a substantial amount of education and been made in this line of development. The development since American investors have purpose of investment trusts is that of pronot been much in the habit of sending their moting a market for the purchase of foreign funds outside of their own country. Not obligations by setting up an intermediary in only is this true, but the question may also be the shape of an American financial institution raised whether foreigners are willing to pay between the foreign borrower and the American the rates which are necessary to attract the investor, thereby to minimize the risks investment of American capital. Prior to the which might be thought to attach to foreign war the general level of yield that could be loans. The plan thus suggested is practirealized upon foreign securities was definitely cally equivalent to the organization of comlower than that which was paid by American panies which purchase and hold issues of stocks and bonds of somewhat similar rank, foreign stocks and bonds. Such concerns buy and accordingly the flow of capital was from selected issues of securities, diversifying them Europe and toward the United States, rather so far as practicable, both as to kind of indus- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MAY 1, 1919. FEDERAL RESERVE BULLETIN". 413 try and as to the location of the enterprise will be used in purchasing American supplies whose securities are purchased. As a rule, the and materials even though there has been no holdings of such a company include many and express stipulation that the proceeds growvery diverse blocks of securities originating ing out of such advances shall be spent in not only with national and local governments, the country from which the capital is debut also with public utility concerns and with rived or that they shall be used in the industrial and private corporations of various purchase of machinery, materials, and the like, kinds. While it is true that there are some produced by designated concerns or groups such investment trusts which devote them- of concerns. In the present situation, the selves entirely to the purchase and distribu- extension of our actual export trade in matetion of the securities of a particular industry rials is more feasible than ever before because and which therefore work upon a principle of the fact that the United States occupies so different from that just outlined, eliminating conspicuous, not to say unique, a position as the risk not by diversification but by intensive a creator and furnisher of capital in interstudy and close control, the general idea in national business. Occupying the position it both classes of undertakings is identical and is does, the Nation is thus able to make its own that of obtaining for the small private in- terms for the furnishing of capital. It may vestor the opportunity to purchase and share be able, in other words, within limits to esin a large body of carefully selected securities tablish its own price for goods sent to foreign whose conditions of issue, legal status, and, in countries, taking its payment in the form of fact, all details relating to which, have been securities which are then distributed to buyers, thoroughly investigated. The plan referred but, clearly, good judgment and moderation to has not been pursued in the United States, in fixing the terms of the loans and the conbut probably some such method of reaching ditions of purchase will be required if a satisfacthe investor will be useful if the purchase tory and permanent relationship is the object and holding of foreign securities is to become aimed at. Foreign countries will not buy if the very widely diffused, inasmuch as the average price charged them for goods is so high as man has not the facilities for investigating to make the investment unprofitable, nor will and determining the character of the bonds they purchase at all unless the capital is supand stocks that are offered to him, and of plied to them upon reasonable terms. Succourse none for participating in underwriting cess in the further development of our export enterprises or in plans to profit from the business, therefore, depends not only upon general absorption and sale of large issues. wise financing but upon moderation and tactful What has been said shows how the organiza- dealing in handling the whole investment tion of investment trusts of situation. Investment the kind outlined will operate During the month of April there has been trusts and export , • -, . ,, . * , t |e. L° aic* m tiie regular and Development of further tendency on the part of ra€ steady absorption of securities exchange situa- foreign exchange quotations to offered by foreign buyers of American goods. lon# settle to something like their The investment trust, from this standpoint, normal basis. Sterling bills have not fallen would be made highly beneficial to those who below the quotation reached immediately after participated in it simply as investors. In the the withdrawal of Government support, but on present situation, however, the establishment the contrary have tended to recover, at one of companies for foreign financing will serve a time reaching a point about midway between very much larger end. This end is the facili- the rate current when the "pegging" process tation and promotion of the export business was suspended and that which was reached of the United States. It is highly probable soon after the withdrawal. As the "stabilthat in present circumstances the proceeds ized" rate was 4.76 per pound, and as the low Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

414 FEDERAL, RESERVE BULLETIN. MAY 1, 1919. point touched by sterling quotations was 4.58, the situation thus tending to restore internathe intermediate point would be 4.67, and during tional trade to its older basis. Assuming that the latter part of April market prices have tended conditions of trade are normal and that there to move irregularly about that figure, although have been no serious interferences with demand frequently below it. On the other hand, quo- and supply, this theory may be regarded as tations for French francs have steadily tended tenable. lower, reaching at one time the quotation of A new situation, however, is created when- 6.14 francs to the dollar, while Italian lire ever it appears that the purchases of one have maintained a downward tendency which country in another are practically unavoidahas brought them as low as 7.5 lire to ble and that they consist of essential comthe dollar. The neutral exchanges, although modities, the need for which is so great as to fluctuating sharply after the withdrawal of render demand for them practically irrespec- Government support from sterling and lire, tive of price. In such circumstances a reduchave practically become stabilized and have tion in the purchasing power of currency within recent weeks shown only a relatively can not be expected to exert more effect than small tendency toward fluctuation or deprecia- would a corresponding general increase in tion. The weeks which have elapsed since the prices of the commodities established while withdrawal of Government support have been currency values were upon their original level. a period of transition during which the devel- Another aspect of this question also demands opment of a final level of exchange was not some consideration. After a reduction in the possible, owing to uncertainty respecting the value of a foreign currency has taken place, future. As soon as the immediate future of resulting in lowering its purchasing power in trade has reached a more definite basis under the way just assumed, there is a tendency on the peace treaty, it may be expected that quo- the part of demand and supply to adjust tations for foreign exchange will adjust them- themselves to this new basis. Should there selves upon some more stable basis. Mean- be no further drop in exchange values and conwhile, uncertainty with respect to the probable sequently no further disturbance of purchasing course of quotations has naturally tended to power on that score, it is fair to suppose that unsettle the attitude of dealers with respect to international trade will be readjusted upon the remittances to foreign countries. new level of relationships which has thus been The question how far the falling off in the price introduced. It is not supposed, for example, of sterling and other foreign cur- that trade between gold and silver using counrencies wiU in fact operate, as tries is obstructed by the fact that the currency of one country is of lower purchasing value has so frequently been reprethan another, unit for unit, but only by sented, to reduce the demand for American the fact that irregularity in exchange quotagoods in those countries whose currency is thus tions renders such international trade uncertain at a discount in the United States, is an interand unstable. If the reduction in the value esting subject of discussion. The economic of one currency in terms of another represents view on this point has been that as the value practically a definite fall from the old level to of a country's currency in terms of another the new, with comparatively little fluctuation declined, the purchasing power of that currency sustained a corresponding decline, with or variation thereafter, there is little reason to the result that its imports would cost it more. suppose that the trade between the two nations Importers, it was supposed, would therefore will be materially affected by the fact that one be less able and less inclined to purchase goods currency now has a value which is permanently abroad, with the result that their demand for or semipermanently lower than that of the foreign merchandise would be reduced and country with which it is engaged in trade. accordingly their importations \70uld fall off, This situation should be kept carefully in mind Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MAY 1,1919. FEDERAL RESERVE BULLETIN, 415 in considering the statements frequently made [In thousands of dollars; i. e., 000 omitted.] in respect to the probability that a fall in the ! I Excess value of sterling exchange will result in a con- of | Imports. Exports. imports tinuously lower volume of importations from over exports. the United States to Great Britain. In fact, there is thus far comparatively little evidence Aug. 1 to Dec. 31, 1914 j 23.253 104,972 i 81,719 of any such influence. A much greater effect Jan. 1 to Dec. 31, 1915 i 451,955 31,426 420,529 Jan. 1 to Dec. 31,1916 ! 685,745 155,793 529,952 has been exerted by the regulations of the Jan. 1 to Dec. 31,1917 ! 553.713 372.171 181,542 Jan. 1 to Dec. 31,1918 ; 61,950 40,848 21,102 British Government designed to restrain the Jan. 1 to Apr. 10,1919 ' 19,483 11,163 8,320 importation of commodities. Total ".1,796,099 I 716,373 1,079,726 _. .._ j ... _! i During the month ending April 18 there was 1 Excess of exports over imports. The banking a net reduction of more than Of the gold imports for the month, amountposition. $200,000,000 in United States ing to $10,345,000, receipts of $6,037,000 came war securities held by member banks. Large from Canada and $2,500,000 from Hongkong, decreases in certificate holdings between the remainder coining largely from the Dutch March 14 and March 21 were due to the East Indies and Mexico. Gold exports, amount- Government's redemption of $800,000,000 of ing to $3,950,000, were consigned chiefly to tax certificates. There was a falling off of Venezuela, Colombia, and Mexico. about $400,000,000 in the general certificate holdings of reporting banks by April 4. In At a meeting of governors of Federal Keserve the aggregate the United States war securities The acceptance Banks with the Federal Reand war paper held by the member banks situation, serve Board at Washington on decreased from 4,035.3 millions on March 14 March 20-22, the following report was made: to 3,810.7 millions on April 18, being 26.6 per The discussion developed the fact that there is a growing cent of the loans and investments of all reporttendency on the part of member banks to misuse and possiing b anks. During practically the same period, bly abuse the right of acceptance credits in domestic but closing on April 25, Federal Reserve Banks transactions. These abuses doubtless grow, in many increased their war paper holdings to a total of cases, out of a lack of knowledge of what are correct practices, and to some extent out of difficulties incident to the 1,760.7 millions, or 69 millions more than the war. The principal abuses noted were in the employment corresponding total on March 21. At the same of acceptance credits for transactions which are in fact time there has been a continued liquidation of loans upon commodities. In such cases the use of the acceptances on hand. Discount operations in acceptance credits is frequently a subterfuge to escape the the aggregate increased as compared with provisions of section 5200 of the Nati©nal Bank Act, and February, and also as compared with March in other cases an improper drawing of bills against domestic shipment of goods. It is the belief that it would be a a year ago. War paper discounted was 95.6 mistake to endeavor to correct these practices through per cent of all bills discounted as compared general regulations applying to the purchase of bills by with 41.7 per cent in March, 1918. During the the reserve banks. month of March the number of member banks After full consideration of the situation the increased from 8,748 to 8,761, while the number Federal Reserve Board has requested a comof discounting members increased from 3,091 in mittee of Federal Reserve agents to prepare February to 3,575 in March. suitable acceptance literature designed to ex- During the month ending April 10 the net plain the acceptance principle and to guide the Gold move- inward movement of gold was development of acceptance methods among the ment. $6,395,000, as compared with banking community with a view to improving a net inward movement of $3,880,000 for the present practices, and at the same time with month ending March 10. the object of stimulating the wider use and The gain in the country's stock of gold application of the acceptance principle, both since August 1, 1914, was $1,079,726,000, in domestic and foreign trade under sound and as may be seen from the following exhibit: safe conditions. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

416 FEDERAL RESERVE BULLETIN. MAY 1, 1919. BUSINESS AND FINANCIAL CONDITIONS DURING APRIL, 1919. During the month of April business prospects to expand, and production in textile mills has have improved, retail trade has increased in increased." District No. 3 reports retail trade volume, prices have apparent^ assumed a more "wonderfully good and reports from all parts stable position, and business generally is con- of the district very encouraging." Reports sidered on a stronger and better footing. The from District No. 4 state that " the whole indusfloating supply of labor which had threatened trial field is breathing easier, and gains along a considerable amount of unemployment during practically every line, while in many cases the months of February and March has been infinitesimal in scope, reflect a condition which partially absorbed and the prospect of a large gives indication of progress both steady and grain crop promises still further opportunity permanent." From District No. 5 it is stated for the use of the entire labor supply. Federal that there is indication of "increasing confi- Reserve agents almost without exception re- dence and stability"; from District No. 6 that port a growth in confidence and improvement ''during the past month there has been an in general trade and industrial conditions. increase in practically all lines of business"; Manufacturing is still retarded in steel and from District No. 7 that "fundamental condisome other basic industries, but there is im- tions, aside from a lack of confidence in the provement in the copper and lead situation. stability of the present price level, are consid- Textile manufacturing, both in wool and cot- ered sound"; from District No. 8 that "busiton, particularly the former, is improving. The ness activity continues to improve with the export trade of the month has been large and further readjustment of prices, and in some financial conditions have been quiet and re- lines it is practically normal"; from District assuring. No. 9 that " the general outlook throughout the district is very good "; from District No. 10 that In the First Federal Reserve District "the "a more hopeful spirit seems to prevail and in turn in the tide of business which was beginmost lines of industrial activity things have ning to be felt a month ago, becomes increasassumed a cheerful aspect." The Tenth Disingly evident each week, and the impression is trict further speaks of "unparalleled prospects becoming general that no lower price level will for bumper crops" and of an increase in buying. be established at least for some time. This is In the Eleventh District it is stated that "a having the effect of encouraging buyers to place sound and normal business is being transacted"; orders with more confidence, and manufacturers from the Twelfth District it is reported that are going ahead in a surprisingly satisfactory "manufacturing and industry are fair, but inmanner. It will be a long time before all seccreased activity is expected, due to improved tions of this district are back again on a strictly labor conditions," while agriculture and stockpeace basis and before labor and materials are raising enterprises are said to be in excellent again evenly distributed, but the period of condition. unemployment and stagnant business, which many expected, shows no sign of materializing, Possibly the most conspicuous feature of the and the trend is decidedly in the other direc- whole business situation is found in the fact tion." From the Second Federal Reserve Dis- that prices have apparently been somewhat trict it is reported that growth in confidence is "stabilized." Marked declines are still reported manifested "in the more numerous advance here and there in some special lines, but from orders placed with wholesalers for the fall. nearly all districts it is reported that the uncer- Certain lines in the ordinary distributive trade, tainty concerning prices has been mitigated such as jewelry, automobiles, and musical in- and that business men now expect that existing struments, are very active. Retail trade, in- levels of prices will be substantially maintained cluding the mail-order business, has continued for some time to come. The Bureau of Labor's Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MAY 1,1919. FEDERAL RESERVE BULLETIN. 417 commodity index numbers show that the seeding is well advanced and that conditions decline in prices noted during the past three are satisfactory, while winter wheat and other months has now not only been checked, but cereals have come through the season in exthat prices as a whole have apparently taken cellent condition. On the Pacific coast crop a flight turn upward, the general index number conditions are unusually favorable, wheat increasing from 197 to 200.'' This general sown in the fall has wintered well, the acreage situation, as further analyzed in the Board's of winter wheat is considerably greater than compilations, shows that during March the that of last year, while other products of the decrease in price of producers7 goods continued, soil promise an unusually abundant outturn. the index number for the group standing at Practically all growing crops in the South 189 as compared with 191 for the month of and Southwest are reported as satisfactory, February. The decrease is paralleled by a there being a good outlook both for increased decrease in the prices of raw mineral products, acreage and for large yield per acre. The the index number for which group stands at 170 movement of grain to the markets continues in as compared with 173 for the month of February. smaller volume, due to heavy marketing in the The index numbers in the case of consumers7 fall and early winter. Domestic flour demand goods and the other groups of raw materials, and the opening of foreign markets to American however, show an increase. This is particularly wheat has tended to raise prices, lieceipts of marked for farm products and animal products corn at the principal markets are comparain the latter group, the index numbers increasing tively small and the same is true of oats and respectively from 222 to 235 and from 208 to other grains. Flour milling has improved 216. During the early part of April a further during the month and in some sections is as strengthening of prices in many lines has been much as 50 per cent above the total for the noted. Efforts at Government price fixing are corresponding date in 1918. Production durstill under consideration, the difficulty of bring- ing the month of March was 10,247,000 barrels, ing about a definite adjustment in connection as compared with 7,736,000 during the month with steel, coal, and other basic articles having of February and 12,994,000 during January. as yet proved insuperable. This leaves those The stocks at the mills show an increase from industries without a standard price level recog- 3,544,000 at the close of February to 4,578,000 nized by the Government, but with the expec- barrels at the close of March. As for live stock, tation on the part of dealers that prices will not movements to the primary markets of the decline materially below present figures. Southwest show some decrease as compared The most important industrial development with a year ago, while a steady rise in hog during the month of April has undoubtedly prices since the removal of the Government been the Government's estimate for acreage guaranteed figure of $17.50 has been observed. and production of the principal agricultural The price of hogs at about the middle of April crops. The forecast for grain was made public was $20.09. The decrease in the receipts of on Aprils and showed a condition of 99.87 per hogs during March has been especially procent, or the highest condition percentage ever nounced, receipts at 60 markets for the month recorded on the largest acreage ever under culti- being 3,632,874, as compared with 4,404,751 vation, so far as winter wheat was concerned. during February and 4,444,406 during March, The estimated yield of winter wheat under 1918. The figures of receipts of cattle and of these circumstances is 837,000,000 bushels, sheep likewise show a falling off from the with other cereal crops in almost equally figures for March, 1918, though both are slightly promising condition so far as can be forecast above the figures for February of the present at this season. From the wheat district of the year. This condition is reflected in reduced Middle West it is stated that spring wheat purchases by packers during March. The Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

418 FEDERAL RESERVE BULLETIN". MAY 1, 1919. reports indicate that packers' operations in Corporation have continued to decline, standprimary markets were reduced 9 per cent in ing at the close of March at 5,430,572 tons, as cattle, 1 per cent in hogs, 5.7 per cent in calves, compared with 6,010,787 tons at the close of as compared with purchases for slaughter in February, the index numbers, respectively, be- March, 1918. Stocks of beef in the United ing 103 and 114. It is reported from Dallas States on April 1 are reported to show a heavy that the present situation in the copper indecline from the March 1 figure, although for dustry "has nothing about it to stimulate, pork products no material change is noted. enthusiasm," the market being practically at There appears to have been a continuance of a standstill, while during the past month there the heavy export movement of meat products have been quotations as low as 14\ cents. The which was so well sustained during the winter curtailing of output from 30 per cent to 50 months. The fact that the industry has been per cent has had little effect on reducing the released as of April 1 from industrial control world's surplus, as sales have not equaled the by virtue of a proclamation signed by the reduced output. These conditions have been President, leaves the price and movement of in process of slow rectification since the middle the product to be regulated by demand and of the month. The copper situation has supply. In the cotton-growing regions the become more encouraging during the month prospect for yield is satisfactory, weather of April, some considerable sales being reconditions having been good, but owing to ported at prevailing prices. Lead ores have efforts to bring about a curtailment of acre- declined in value, but the demand for them age it is now estimated in some sections that remains firm, and there is no accumulation of a reduction in the total area of land under surplus stocks. Zinc has shown a downward cultivation amounting to as much as 15 per tendency, but with comparatively heavy shipcent to 20 per cent of the acreage of 1918 will ments. Production of both metals has been be effected. considerably decreased during the past several In the manufacturing industry fundamental months. In coal, production continues at interest continues to center around the steel about the same rate, but the present demand situation. This is still undecided because of is naturally very light. Orders for the comthe failure to arrive at a definite price policy ing winter's supply have not yet begun, while for the coining months. So far as known, the some plants which are usually heavy conschedule of prices tentatively agreed upon be- sumers have suspended demand. In the tween the Government and representatives of West Virginia district conditions show little the industry during March has continued prac- improvement, and sales of mining machinery tically in effect. Latest reports indicate that are slow. Bituminous coal production during the mills of the United States Steel Corpora- the month of March was 33,716,000 tons, as tion are running at 74 per cent of capacity,while compared with 31,497,000 tons during the independents are running at 45 to 50 per cent month of February. The daily production of capacity. Pig-iron production during March of anthracite coal declined somewhat from was 3,090,243 tons, as compared with 3,141,180 the February figures, total production for tons during February, the respective index the month being 3,938,907 tons, as comnumbers being 133 and 136. Steel-ingot pro- pared with 3,871,932 tons during February. duction likewise declined, production in March The respective index numbers were 70 and 74. being 2,262,265 tons, corresponding to an Figures for production of both bituminous and index number of 111, as compared with anthracite coal are very much below those of 2,688,011 tons during February, the index a year ago, when bituminous coal production number for the latter month being 121. was 48,631,115 tons, and that of anthracite The unfilled orders of the United States Steel 7,276,777 tons, the index numbers being 7 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1, 1919. FEDERAL KESEKVE BULLETIN. 419 respectively, 131 and 129. The production The lifting of the English • embargo on the of beehive coke has continued to decline, cheaper grades of leather has stimulated foramounting during March to 1,768,449 tons, eign demand. corresponding to an index number of 68 as General labor conditions are improving. compared with 1,822,894 tons during February, From many of the manufacturing districts they the index number for which was 75. In are reported as fairly satisfactory. The queslumber, markets show generally a firm tone, tion of wage readjustment has made comparawith demand still up toward the output and tively little progress and labor continues to be practically no decline in prices, but on the employed on nearly a war basis of remuneration. contrary, advances in various grades. The volume of unemployment on the Pacific In general manufacturing, conditions still coast is very much less than a month ago, and continue somewhat "spotty." In many sec- the same is true of New England. From many tions mills have smaller stocks than usual, sections a shortage of farm hands is reported. but with an improving demand both for goods Partial revival in the building trades promises and for yarns, while many factories are esti- to open a considerable new field of demand for mating on new orders and showing a larger labor heretofore unemployed or obliged to seek interest in the situation. The depleted con- occupation in other lines of industry. The dition of retail stocks has led to purchases of labor situation is less satisfactory on the a hand-to-mouth variety, even on the part of Atlantic seaboard than in the interior, due to dealers who do not wish to commit them- the fact that considerable numbers of returned selves very fully as to the future. Greater soldiers have failed to redistribute themselves activity in preparation for the spring trade is to their points of origin. In the Middle West, reported by wholesalers and jobbers. It is especially in the chief agricultural regions, the predicted in some quarters that demand from situation has decidedly improved. now on will be sufficient to enable the South Export trade during the month has conto dispose without further sacrifice of the tinued large, although it consists predominantly cotton it is carrying. Labor conditions in of raw materials and articles for further manuthe cotton-milling regions are still unsettled. facture. Nevertheless, interest in the export In the woolen trade demand for men's wear trade continues unabated, and several imhas become very much more active. A large portant developments have occurred during volume of orders has been developed during the the month. Shipping rates have shown a month of April. From Richmond it is re- decided downward tendency, while the organiported that business is still dull with the zation of an investment trust for the purpose underwear and blanket mills, but in other lines of encouraging the absorption of foreign mills are reported as having realized much securities has made a beginning in the practical benefit from the policy of drastic price reduc- financing of export business. The organization tion initiated two months ago. The industry of associations under the Webb law for the puris now regarded as being once more upon a nor- pose of facilitating foreign trade, indicates a mal basis so far as volume is concerned, while continuous interest on the part of manufacraw wool has recently sold at auction upon a turers, both large and small, in the development basis of parity with the Government prices. of markets abroad. Two export organizations The automobile industry is apparently fully have been formed by important members of occupied and is running on the basis of about the packing industry and twenty-five large 90 per cent of existing facilities. In leather lumber mills have united for the same purpose. and shoes the principal companies have re- Similar activity is reported in a number of ported phenomenal profits and prices are other lines. A cotton export corporation orstrongly maintained with abundant orders. ganized to facilitate the distribution of cotton 115631—19 3 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

420 FEDERAL RESERVE BTJLLETHsT. MAT 1, 1919. in other countries and its steady movement SPECIAL REPORTS OF BUSINESS CONDITIONS. from the United States is projected. The an- REPORTED BY DISTRICT NO 1. nounced action of the economic council at There has been a decided change in the wool Paris, made public on April 23, by virtue of market since last month. The London market which the black list is to be abolished and the opened with upset prices 1\ per cent below system of licensing exports for shipment to the former established prices. Corresponding reductions in upset prices were made by this foreign countries terminated, is regarded in Government. In neither case were the remany lines of trade as promising a much better ductions reflected in sales prices, as bidding opportunity for foreign shipments. Parallel for fine wool has become quite spirited in both action has been announced by the War Trade markets, sending the prices above the former Board on April 28. level. The Government is succeeding in disposing of its wool very rapidly, with only small Financially the month has been quiet. The withdrawals occurring at the Boston auctions. Board's compilation of interest and discount The new clip is just beginning to move in rates from the principal centers shows rela- Arizona, and is being sold by the growers at tively few fluctuations and these not of a much higher prices than had been anticipated. character to indicate any decisive trend. The With mill requirements for wool steadily increasing, and with little foreign wool coming to greatest variations have been noted in conthis market, it would seem that wool will connection with call money, which has fluctuated tinue at high prices for a considerable period. from 3\ per cent to 6i per cent, but has been firm From the low point in woolen mill production, during the latter part of the period at around which was reached more than a month ago, 5J per cent. The supply of bank acceptances there has been a very rapid increase until now production is approaching 70 per cent of norhas been small and the total volume in the mal capacity with individual mills varying market indicates a falling off. There has been by wide margins from the average. a tendency to shorten maturities of commercial Only the finer grade goods are in active paper considerably, while the demand for the demand, as the tendency seems to be to get best names has been very satisfactory. The away from such grades as had been used to make Army cloth. Mills which were especially opening of the Liberty loan campaign on April adapted for those lines, therefore, are not 21 has tended to hold various industrial enterreceiving as many orders as they desire. prises in check, pending the completion of the Much of the change in mill production has Government's requirements. As a rule, the been brought about by the placing at the end policy of bankers has been to conserve their of the season of orders which ordinarily would have been placed much earlier in the year. lending power until after the loan has been fully It has been this congestion of orders at the disposed of. Some tendency to liquidation was last minute that threw the mills into the market noticed among the banks prior to the offering for wool. In some cases the need for wool of the Victory loan, the effort of these institu- was so acute that shipments to the mill were tions being to reduce their outstanding com- made by express. These were the conditions which caused the spirited bidding at the recent mitments wherever reasonably possible. Fedauctions. eral Reserve notes have increased somewhat Although sales of cotton goods are far below during the early part of the month, but later normal for this season of the .year, there has showed a slight tendency to fall off. The been a decided improvement both in the numprospects for moderate accommodation to bers of orders received by cotton manufacturers, and in the prices at which they were business and industry appear to be encouraging, taken. Orders now received will show a small most banks having still a substantial margin of margin of profit as compared with those placed lending power. earlier this year which involved actual loss. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MAY 1. 1929. FEDERAL RESERVE BULLETIN. 421 More mills are in operation, and those which the demand continued fairly strong, being were operating on reduced schedules are now somewhat -stronger in the Middle West and running at nearly full time. A few mills on the Pacific coast than elsewhere in the that a month ago were taking business regard- country. There has been a tendency toward less of profit in order to keep running, now lower rates, and at the middle of April the find themselves operating at full capacity with market was on a 5{ per cent to 5i- per cent orders booked up to July. basis with perhaps the greater volume of The real demand comes for goods for earty business being transacted at the lower rate. delivery. Little business is being booked for Buyers are reported to prefer either very short the future, as the mills expect to obtain even ! maturities or six-month maturities to those of better prices later on and-as uncertainty still four or five months, the former being immedi- 7 prevails among buyers. Sales of the staple ately eligible for rediscount at the Federal continue extremely light, with a. feeling of Reserve banks and the latter assuring a yield general improvement over the condition pre- at the present basis for six months. The vailing a month ago. Light buying at this preference for longer maturities is taken by time, which is usually the most active period some as an indication that buyers anticipate of the year, is due, perhaps, to the extremely lower interest rates. The supply of nbw bank heavy sales of last fall, which resulted, in the acceptances continued very small, and some case of New Bedford, in shipments of cotton dealers have reported that they were practically being so far this season more than 10 per cent sold out at times. There was a fairly strong in excess of those of the corresponding period demand, particularly for prime bills "of short in the season of 1917-18. maturities. The rate remained unchanged, at Stocks of hides and skins have been badly 4J; per cent for 90-day bills. Call money was depleted in the world markets. Government considerably firmer than during the preceding price restrictions had feeen put on when the four weeks' period. The renewal rate rose market was lower than normal and so tanners from 4 per cent on March 18 to 6 per cent on were enabled to buy leather at low prices. March 20, but ruled between 5 and 6 per cent Upon removal of these restrictions prices of j during the remainder of the period, going hides advanced rapidly. As yet leather made j below 5 per cent on only four days. It befrom higher pricea hides has not come on to came distinctly firm at 6 per cent toward the the market. Sales are continually being made end of the second week of April. Time money at slightly firmer prices with foreign purchasers of all maturities, for use in collateral loans taking any surplus available for export. on the street, continued scarce and firm at 5f Shoes are still being made from this com- to 6 per cent, with demand light at those rates. paratively low priced leather, with, the result There was practically no change in rates that prices are steady. As present supplies of charged by banks to customers on commercial leather become exhausted and are replaced by loans. leather made from high priced hides, increased Banking position.—Bank clearings at New costs are bound to be reflected in the retail York for March totaled 816,486,973,689, an price of shoes. Meantime, the shoe manufac- increase of 13.9 per cent over March, 1918, turers are experiencing extremely good busi- caused in part by the unusually large volume ness. Many are running to almost normal of transactions on the New York Stock Excapacity. A marked increase has been noticed change. Weekly clearings for the period under in the sales of men's shoes, and total sales in review were as follows: number of pairs and values greatly exceed Week ending— those of last year. Collections are good, one Mar. 20 $4, 243, 521, 000 firm reporting less than 1 per cent of actual Mar. 27 3, 650, 249,000 oveidue bills outstanding. Apr. 3 4, 087,988, 000 Apr. 10 3, 934,277 000 ; REPORTED BY DISTRICT NO. 2. Loans, discounts, and investments of New Interest rates.—The commercial paper mar- York Clearing House banks decreased steadily ket was even quieter during the period under from $4,923,000,000, in round numbers, on review than during the preceding four weeks. March 15, to $4,778,000,000, on April 5, and Dealers report that the amount of new paper then rose sharply during the following week coming into the market is smaller than it has to $4,946,000,000 on April 12. Net demand debeen for many months. On the other hand, posits of these institutions moved within a Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

422 FEDERAL RESERVE BULLETIN. MAY 1, 1919. narrower range and were $3,933,900,000 on class of merchandise is noticeable, and an April 12, as compared with $3,977,000,000 excellent business for the balance of the year on March 15. Out-of-town banks report the is anticipated. Collections have been good demand for loans as normal and state that as the buying public seems to have been their deposits continue to increase. The educated to pay their bills more promptly. amount of Federal Reserve notes in circulation The iron and steel industry is quiet at present continued to increase gradually until April 8, some plants operating at 50 per cent of capacity after which there was a slight decline. and selling only one-half of the pig-iron made. Foreign exchange.—Foreign exchange rates The ultimate outcome, however, is believed to were irregular throughout practically all of the be favorable. The Hines-Redfield controversy period under review, this being especially true has had a very depressing effect. Many conof English, French, and Italian exchange. cerns v/hich had anticipated placing orders for With the exception of three countries in the their steel requirements have now decided to Far East and four in South America, all rates hold off awaiting the result of the controversy. moved in favor of the United States. The Many would be in the market for material, but following table shows the weekly movement in on account of the unsettled conditions, they demand rates on England, France, Italy, and continue to defer purchasing their require- Japan: ments. Taken as a whole, collections are fair. The pottery manufacturers in the Trenton district, one of the most important in the Date. Italy. Japan. country, and a considerable portion of whose Mar. 19. 6.375 0.5075 products go into buildings, state that so far Mar. 26. 7.40 .5075 this year business has been the poorest for a Apr. 2 7.30 .5150 Apr. 8.. 7.27 .51125 long time. The replies to inquiries are, how- Apr. 15. 7.41 .5125 ever, hopeful, as it is believecf buildings of all descriptions are needed in almost every city Stock and bond market.—Dealings in stocks throughout the country, and that the erection on the New York Stock Exchange during of them must soon begin. Some concerns are March were the greatest in volume for any operating their plants to about one-half month since December, 1916, and the greatest capacity, accumulating goods for a demand for any March in 12 years. From early in which they anticipate will come later in the February until the middle of March prices year. Collections have feeen good with what rose rapidly, but the next two weeks showed a sales have been made. slight decline. During the first two weeks in The woolen industry picked up considerably April there was a rise which slightly more than in March and there is now a big Semand for all offset the loss of the preceding fortnight. grades of wool and wool substitutes. Woolen Bond prices netted very little change during mills and manufacturers of men's and women's the period under review. There was pracwear are all busy. Business is rather dull with tically no change in the prices of outstanding the underwear and blanket mills, although it is Liberty bonds following the announcement of believed that they, too, will soon be running full particulars concerning the Victory Liberty full again. In view of the conditions in the loan. The Annalist record of the average woolen mills, the wool market has strengthened prices of 50 representative stocks was 77.03 on considerably and wools have sold at the recent April 12, as compared with 76.42 on March 15; Government auctions on a par with the Govand of 40 representative bonds, 76.81 on April ernment allotment prices in operation during 12, as compared with 76.55 on March 15. The the war. This is particularly true of the fine board of governors of the New York Stock and fine medium grades. Exchange, on April 9, rescinded the regulation in effect since November 1, 1917, requiring REPORTED BY DISTRICT NO. 4. members to make daily reports of short sales to the business conduct committee of the Conditions in the steel trade present a situaboard. tion which is far from satisfactory. Indeed, steel and allied lines are in such a muddled REPORTED BY DISTRICT NO. 3. condition as to make a wholly accurate resume Retail trade continues wonderfully good, and of the situation all but impossible. Opinion reports from all parts of the district are very seems to be quite in accord in believing that encouraging. The demand for the better the net results of attempts on the part of Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MAY lr 1819. 'FEDERAL RESERVE BULLETIN. 423 various agencies, both private and govern- in a position to know that conditions in this mental, to fix "reasonable" prices have had line can not materially improve until Conan effect which tends to discourage rather gress, which will probably be called in special than stimulate activity. This is particularly session at any early date, provides some true in view of certain reactionary forces practical modus operandi for financial relief. which were brought to bear soon after the The pig-iron market shows a sympathetic price-fixing policy had been definitely advo- lull, with but slight hope for better things for cated, and partially put into operation. There the immediate future. While no well-defined is. however, a wide as well as somewhat bitter decline in price has occurred, a slightly comdivergence of views as to whether, in the petitive market is putting in its appearance. abstract, price fixing is the panacea for condi- Although some inquiries are reported for tions at present prevailing in^ the steel field. cranes and other heavy equipment, bookings Some magnates are of the opinion that price are few in number, the bulk of the inquiries fixing is the only practical solution, while apparently being made for estimating purposes other authorities are placing their hopes on a only. policy of absolutely no regulation with a The steel industry, to summarize, is at prescomplete reliance upon what they term the ent the victim of conflicting views and prices "inevitable" laws of "supply and demand." which the consumer believes are not justified Although during the past month some plants by present conditions. The trade is hoping and furnaces have reopened on conservative that some influence which will restore* the working schedules, the gain in most instances equilibrium will soon manifest itself, and when has been offset, if not slightly exceeded, by this occurs opinion is unanimous in believing further retrenchment and reduction of output that business which is at present dammed up by other concerns. The sluggish market is completely will flow forth in such volume as not characteristic of the Pittsburgh district to make for a healthy, permanent prosperity. alone, but is noticeable in other centers, par- The decks, so to speak, a*re well cleared for ticularly at Youngstown. Much impatience, action. considerable criticism, and widely differing views as to the proper remedy for the whole REPORTED BY DISTRICT NO. 5. situation represent, in a word, the conditions of the hour. While general conditions still disclose irregu- With reference to specific lines in the steel larities, they indicate increasing confidence and industry, it is interesting to note that the stability. There has been souse reduction in branch" furnishing materials to automobile prices of canned goods and other food commanufacturers is enjoying, perhaps, the greatest modities. Prices of shoes and leather are activity. While this branch is not running at firm and trade active. Tobacco manufacfull capacity, it is running on a scale which turers are less active and prices of all grades is not only encouraging but which holds bright of tobacco have declined, but most of the crop prospects If or the future. There is, for instance, has been marketed at very high prices. Cotton rather abundant evidence of still greater expan- goods and notions are steadier and manufacsion in the plans of truck builders. The de- turers are limiting production and awaiting mand for sheet steel for these purposes is with confidence improved market conditions regarded everywhere as gratifying, and is as soon as foreign markets can be reached. apparently the real cause for the undertone of One manufacturer of overalls reports decided optimism which seems to prevail generally, improvement in orders. Some sales of goods even in places where present conditions are have been made on a close margin, or without anything but encouraging. profit, rather than disorganize forces or pile That division of the steel industry in which up merchandise. Cotton futures have adthe lowest percentage of operating activity vanced 3 or 4 cents recently and a better is noted is that depending on the railroads for demand is reported for spot cotton. Several its source of demand. Inasmuch as the points report sales of fair quantities of the Nation's steam carriers are said to absorb staple at 26 to 27J cents per pound for average normally about 20 per cent of the steel output lines of good grade. These figures are higher of the country, it will be seen that this situa- than the quotations for futures. tion has a dampening effect on conditions The weather has been warm and farmers generally. Moreover, it is the belief of those have done much work preliminary to spring Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

424 FEDERAL RESERVE BULLETIN'. MAY 1, 1919. planting. Wheat prospects are good for this March, 1919, is less by 113,533 tons than for stage of the crop's growth. Indications are the same months last year. for a reduced acreage in cotton, an increase for Steel mills are working full time. They have tobacco, and a large corn crop. Truck crops enough orders for steel to keep them actively are normal, except a reduction in potatoes, and employed for many months. The unfilled steel there is a promise of an increase in other food tonnage of the United States Steel Corporation products—cattle, hogs, dairy products, etc. in March is reported to be 5,430,572 tons, com- Farmers universally are reported prosperous, pared with 6,010,787 tons in February. There even in the cotton sections, although there is is reported no shortage of labor and no labor complaint of low prices for peanuts, soy beans, complications in this industry. and cowpeas, and difficulty in moving these Owing to heavy export demand the turpentine market has been very active, and large cro Conditions in the coal regions do not show shipments will be made as soon as transportasigns of improvement, and sales of machinery tion can be provided. Prices on rosin are good to coal and oil operators are slow. Pipe plants with very little movement. Owing to unare only operating on short time. Plow and favorable weather the present crop is several wagon manufacturers are busy and report weeks late. business good. REPORTED BY DISTRICT NO. 7. REPORTED BY DISTRICT NO. 6. The automobile manufacturers in Detroit and Wide interest is being manifested in the in other centers are experiencing a good busimovement to organize a cotton export corpora- ness, with satisfactory prospects ahead, and tion. The question is being discussed at meet- this activity extends into the accessory plants. ings of various kinds throughout the district Detroit apparently occupies the position of and every present indication is that it will be having as large a volume of this class of busicarried to a successful end. Committees have ness as can be handled there with the present been appointed to study the matter and to man power. It is estimated that the autowork out details of operation. The benefits to mobile industry now has readjusted itself to a be derived from such an organization can hardly peace basis at about 90 per cent of the existing be overestimated. Not only will cotton prices facilities; but it is not expected that the output be stabilized, because of a gradual marketing of 1915 and 1916 will be reached this year, of the crop the year around, but the producer excepting possibly in low-priced vehicles. The will have a ready and a certain market at all domestic demand for cars is good, and the times for his cotton. Another important result present purchases largely are to replace cars will be the release to other lines of business of which would have been sold or junked in 1917 large sums which have yearly been tied up in or 1918 had the war not intervened. cotton during the marketing season and for Efforts to stabilize steel prices had a benesome time thereafter. ficial effect in stimulating inquiry, but this was Coal production continues at about the same offset somewhat by the attitude taken by the rate as previously reported The output for Railroad Administration in the matter of the March, 1919 (two large coal producing com- baying of steel for railway needs. The adoppanies not reporting), is stated to be 1,436,517 tion of highway construction programs in sevtons, an increase of 285,596 tons over the out- eral States is beginning to find its reflection in put for February. The demand lor coal at a healthier business sentiment. present is very light. Orders for the winter's Building operations are gradually increasing, supply have not begun and some manufac- but the most reassuring feature in the Middle turing plants which have been large users of West is the activity in the preparatory steps coal have ceased operations. for building, rather than any actual construc- QrAj 16 of the 32 pig-iron furnaces in the tion. Owing to weather conditions, as well as Birmingham district are now operating, and hesitancy in regard to price, construction has others will cease to operate unless a more not been up to expectations. Engineers and active demand for pig iron takes place. The architects, however, report plans in the making output for March was 169,042 tons, as com- in excess of any period in the last five years. pared with 191,550 tons for February. The It is very difficult to find a vacant home in pig-iron output for January, February, and Chicago or in the immediate vicinity. The de- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MAY 1, 1919. FEDERAXi EESERVE BULLETIN. 425 mand for apartments is keen, and people seek- presages a quick improvement in production ing houses frequently find it necessary to buy when the construction work gets well Under because it is almost impossible to rent one. way. The demand for summer homes is close to, if Not only in the building line but in pracnot in excess of, the supply, and people to-day tically all lines of industrial activity the price are occupying summer homes and installing situation seems to be the greatest stumbling stove heat because of inability to supply their block, buyers apparently feeling that the price needs temporarily in the city. level has not reached normal. Similar conditions, although possibly not so intensified, are reported from other cities. REPORTED BY DISTRICT JSTO. 8. This situation, of course, is the outgrowth of the restricted building in the last two years. Business activity continues to improve with Manufacturers of lumber and of building ma- the further readjustment of prices, and in some terials, as well as those engaged in actual con- lines it is practically normal. A large dry struction work, are convinced a building boom goods company reports that all of its factories is near at hand. The present activities in are running full time, and that the demand for building, so far as Chicago and the immediate its products is about 80 per cent of normal. vicinity is concerned, have been confined It states that declines of from 25 per cent to chiefly to repair or alteration work of more or 30 per cent have taken place in cotton piece less an emergent character, and to factory and goods, underwear, shirts, hosiery and dress other commercial buildings, where owners are goods, with practically no change in linens, obliged to protect individual interests. silks, and ribbons. A large wholesale general Building material prices are on the down merchandise house reports that the demand grade, with the exception of lumber. During for its merchandise is about 20 per cent above the last month there has been a decline of at normal. Woolen mills report an active busileast 15 per cent in cast iron radiation, 10 per ness, one stating that it has sufficient orders on cent in cast iron boilers, 10 per cent in pipes, hand to carry it for six months. Clothing and about 20 per cent in fittings, but with these manufacturers also report a larger volume of reductions plumbing and heating contracts are business than at this time last year. The boot still 90 per cent above the normal market and shoe industry continues active, with prices period from 1914 to 1915. Brick manufac- firm. Wholesale milliners report substantial turers have a very large supply on hand, arid increases in the number and amount of their are not operating at the present time. sales as compared with last year. A large A similar condition is found among lumber drug concernstates that its business is from manufacturers and dealers. The lumber mills 15 per cent to 20 per cent better than at this at this season are obliged to cut their winter time last year, and that there is an increasing accumulated supply of logs, hence are pro- demand for many sundries and specialties ducing lumber faster than it can be absorbed which may be classified as luxuries. Wholeby the market. The prospective demand for sale grocery houses also report a larger volume lumber, however, is very good and the lumber of business than at this time last year, some reproducer is confronted by the same labor con- porting increases in sales of from 20 per cent ditions and costs experienced in other industries to 25 per cent. Hardware dealers state that and hence resists any price recession. their business is improving and that their sales Large stocks of cement are available and also compare favorably with last year. Some of miscellaneous building materials, while man- branches of the iron and steel industry are ufacturers of structural steel are willing to take still below normal, though increased activity large and small contracts for immediate de- is anticipated. One large steel concern states livery. Cement prices are about 70 per cent that its business is seriously affected by the higher than the prewar level, but costs of lack of demand from the railroads. Manufacmanufacturing are higher by about the same turers of brick and clay products report that per cent. One conspicuous feature in the their business is still below normal, but that cement industry is that there are practically they are looking for a good business with the no purchases except for immediate use, which revival of building and construction work later means that the stocks of cement in the hands in the year. The electrical line is also looking of dealers and users are at the minimum, and for increased activity. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

426 FEDERAL RESERVE BULLETIN. MAY 1, 1919. REPORTED BY DISTRICT NO. 9. The number of rigs and wells drilling at the close of March in the oil fields of the three The general outlook throughout the district States was 23 in excess of the number at the is very good. Spring planting is everywhere close of February. The number at the close in progress, but has been somewhat retarded of March in each of the three States was: in South Dakota and parts of Minnesota by Kansas, 496; Oklahoma, 1,419; Wyoming, 303. rains and snow, the resulting moisture being Abundance of labor and excellent weather to the advantage of the farmers, except that conditions have resulted in unusual mining proit has made the ground too wet for seeding duction, in spite of efforts to curtail the output and temporarily delayed planting. Spring of zinc and lead ores in the Missouri-Kansasseeding is well advanced throughout Montana, Oklahoma district. Along with better working and moisture conditions are satisfactory. Conconditions there has come an increased efficency ditions in North Dakota are very good, wheat of labor with the return of the soldiers. There seeding is general, and soil and weather condihas also been a slight reduction in the cost tions are favorable. of mining, particularly on hard iron and Montana's winter wheat has come through powder, .with a prospect of further reduction. in excellent shape, and there has been very Lead ores at the beginning of March averlittle of the crop that was winter killed. There aged $62 to $65, but was reduced to $60 and $61 will fee an increase of Durham wheat acreage by the end of the month. The high price in in North Dakota, and over the district as a the early part of the month was the result of whole barley and oats will doubtless show an local competition and after this passed the increase. Winter rye has come through in market became more normal. The demand good condition, and has been greatly benefited for lead ores remains firm and there is no by moisture so far this spring. The flax accumulation of surplus. acreage in North Dakota may be somewhat Zinc ores showed a downward tendency in decreased, but in Minnesota and South Dakota March, the average price dropping from $40 to will be about the same, with the probability of $45 at the beginning of the month, to $37.50 a slight increase in Montana. With favorable and $42.50 at the close. Calamine ores conweather, seeding should be completed by the taining 40 per cent zinc were steady at $25 to middle of May, which will not be much later $27.50 per ton. Shipments of zinc ores were than in an ayerage«season, although the plantcomparatively heavy throughout the month. ing season will probably be somewhat late over In the Colorado mining districts conditions the district as a whole. are somewhat unsettled. Low price base REPORTED BY DISTRICT NO. 10. metals, associated with steadily increasing costs of living, have put operators in a serious March operations in the oil fields were abou^ dilemma, for they can no longer produce with the same as operations in February, and it is profit at present cost of labor. j£n announced not expected that the improvement promised reduction of $1 a day in wages at Leadville has for early spring will have materialized during been met with threats of a strike by miners. April, owing to the severe wind and snow- The large molybdenum interests at Climax storms in mid-April, which did great damage to have suspended operations, as have also tungsrigs and retarded operations. Daily producten operators in Boulder county. On the tion has been running slightly under 300,000 other hand, there is slightly more activity in barrels in the Kansas-Oklahoma fields since Gilpin and Clear Creek counties. The general the 1st of March, the total output of these fields outlook is encouraging unless there is some for March being a little over 9,000,000 barrels. radical change in the metal markets. More wells were completed in Kansas and Coal operations have shown no apparent Oklahoma in March than in February, but increased activity and production is close to there was a falling off in new daily production 50 per cent of normal, with no apparent infrom the February record. The March field crease in demand. summaries are: REPORTED BY DISTRICT NO. 11. Comple- Productions. tion. Dry. Gas. The vast area of the district and the wide Kansas 203 6,055 45 difference in latitudes make it difficult to Oklahoma 657 30,050 176 reconcile the numerous reports on crop condi- Wyoming 14 1,725 2 March, 1919 874 37,830 223 tions. Summarized, however, they are excep- February, 1919. 871 50,373 240 tionally favorable. Weather conditions have Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MAY 1, 1919. FEDEEAL KESERVE BULLETIN. 427 been good and permitted of planting on a smaller volume of business being transacted by large scale. The condition of the small grain the merchants drawing trade from this industry. crop shows further improvement during the past month, and the district will make an REPORTED BY DISTRICT NO. 12. unprecedented yield. In the Rio Grande During the past month the numberV, of valley the truck crops have been above the unemployed throughout the district has been average, and other growing crops in that greatly reduced. It is reported that in Calisection are in excellent shape. In the Roswell fornia there is now a surplus of 12,000 worksection, where farming is done principally by men, as compared with 19,600 a month ago. irrigation, prospects for alfalfa and fruits, Of these 4,500 are in San Francisco, 7,00(Hn which are quite important commodities there, Los Angeles and vicinity, and 400'in Oakland. were never better. Prospects are also encour- They include 7,300 unskilled laborers, 1,400 aging for an increased acreage in grain crops in agricultural workers, 800 unskilled shipworkers, the dry lands. In practically every county of and 685 clerks. In Oregon, there is an estithe district the season in the ground is the mated surplus of 3,955 against 8,985 on best in recent years, and while weather condi- February 1, of which 1,455 are skilled and tions will determine the outcome, for the 2,500 common or semiskilled. There is, howpresent at least, the prospects for bountiful ever, in that state a shortage of farm hands crops are most encouraging. numbering about 250. In Washington the Except for the recent severe weather in the unemployed number 7,000 and include many Panhandle and eastern New Mexico, and skilled, and semiskilled workers formerly emprobable losses, livestock conditions could be ployed in the shipyards bisilding wooden ships, reported as extremely favorable. No definite ihis is a decrease of 3,000 from the total reports have been received as to the losses reported last month. With offers of wages sustained in the recent storms. They are, ranging from $65 to $75 per month and board however, believed to be negligible. Range and lodging, there is an estimated shortage of conditions are reported as ideal. Cattle, from 800 to 1,000 farm laborers in Washington. fattened on grass, are now being shipped to the In Utah labor conditions have improved, but markets, and they are reported to be in good there is still a surplus of 5,000. Estimates from quality and bringing satisfactory prices. This Arizona place the total number of unemployed early marketing has enabled cattlemen in the at 4,000, mostly miners. Idaho reports a southeastern counties to liquidate their indebt- shortage of agricultural workers and no unedness, and it means generally prosperous condi- employed except a few miners. In Nevada a tions. Stocker cattle are in heavy demand and small surplus of clerks and truck drivers is noted. are bringing unusually high prices. The price Reports from a selected group of departof hogs recently reached a high level when a frac- ment stores and wholesale drygoods firms in tion over $20 per hundred pounds was paid at nine of the largest cities of the Twelfth Federal the Fort Worth market for hogs of good quality. Reserve District indicate that retail trade is With the rains over the entire Southwest and exceedingly active, but that wholesalers are fine prospects for a heavy feed crop, the outlook experiencing some difficulty in disposing of for increased hog production is promising. their stocks. This situation is said to be the The present situation in the copper industry result of a desire on the part of retailers to district has nothing about it to stimulate enthu- liquidate their stocks and to buy for present siasm. The market is practically at a standstill needs only. Several retail firms state that and during the past month there have been their buying policy has remained unchanged quotations as low "as 14 J cents. The curtailing during the past two months, others report of output from 30 to 50 per cent has had no greater confidence in making future commiteffect in reducing the world surplus, as the sales ments which are for periods ranging in length have not nearly equalled the reduced output. from two to six months, and some are placing The output of the mines has been decreased orders for .fall delivery although not in so to as low a point as possible commensurate great a volume as normally. Prices since with the maintenance expense, and forces have November have had a downward tendency and been cut proportionately. Nevertheless, the the prevailing opinion among wholesalers and operators have paid particular attention to the retailers is that the next few months will witquestion of unemployment, and have not ness further, although gradual, declines. The released those employees longest in their serv- greatest reductions are being made in staple ice. The slump in copper, the cut in wages cotton and woolen goods, although they are and reduction of forces Has been reflected by a still selling at high levels. 115631—19 4 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

428 FEDERAL RESERVE BULLETIN. MAY 1, 1919. Deposits and War Paper. growth in the volume of holdings of war obligations and war paper has been greater than Much attention has been focussed upon the the rate of increase of the deposit accounts. great growth of national-bank deposits during It is noted in the case of many individual the past few months, the apparent view enterbanks that the general correspondence between tained by some being that this growth in the loans and discounts on the one hand and deposits represents a corresponding growth in deposits on the other, which represents their strength or in regular business activity. The ordinary or normal business, has disappeared, following table has been compiled for the pur- loans and discounts being very much smaller pose of comparing at different dates the rate of than the deposits carried on their books. This growth in deposits, while there is also stated, condition of affairs is particularly noteworthy so far as can be obtained, the amount of in the case of some of the larger city banks Government obligations held and the volume and is explainable by the fact that a large of war paper secured by such obligations. proportion of bank assets has gone into the From this comparison it will be seen that during form of actual investments rather than disthe period for which statistics are available the counted bank paper. National-hank deposits and holdings of United States war securities and war paper. [In millions of dollars; i. e., 000,000 omitted.] War paper held War paper discounted Date. de G p r o o s s i s ts. dep N o e s t its.1 r o a e n m s N e w o r e v h u t e i n c t i h s Holdings of— secured by- o h b o o l T i l f g d o a w i t t n a i a g o l r n s s b B v a nk F s e . deral Reserve computed. L b i o b n e d rt s y . T e r c e e a r a t t e i s f u s i- . r " y L b i o b n e d rt s y . T c r c e e a r a t t s e if u s i . r - y a p n a d p w er a . r Date. Amount. 1917 Mar. 5 12,958.2 10,491.3 10,489.2 Mav 1 13.080.3 10,605.0 10,283.5 June 20 12,771.8 10,641.2 10,084.2 iii.i •. _.| 1917, June 22 2 83.2 Sept.11 13,230.5 11,028.8 10,082.8 217.9 Sept. 14 2 21.5 Nov. 20 14,794.1 12,415.2 10,348.8 702.9 i Nov. 23 2 365.4 Dec. 31 14,442.5 11,749.6 10,556.5 609.6 354.7 Dec. 28 283.4 1918. Mar. 4 14,435.5 11,871.1 10,462.4 475.5 876.9 299.7 1,652.1 1918, Mar. 1 249.2 Mav 10 14,380.4 11,765.8 10,310.4 861.3 May 10 612.3 June 29 14,0.16.1 12,013.1 10,127.9 730.5 618.8 457.7 1,807.0 June 28 434.5 Aug. 31 13,879.7 11,815.8 10,456.7 668.0 996.1 406.8 42.0 2,113.0 Aug. 30 896.2 Nov.l 15,041.4 12,645.6 10,767.5 1,374.3 Nov. 1 1,252.9 Dec. 31 . . 15,414.2 12,588.9 11,562.5 1,214.0 982.1 1,020.4 36.7 3,253.2 Dec. 31 1,453.8 1919. Mar. 4 15,291.9 12,848.8 11,283.7 1,029.3 1 870 7 1 034 7 40.8 3,975.5 1919, Mar. 7 1,701.5 1 Gross deposits, less amount due from banks and bankers and items in process of collection, also less clearing house exchanges and cheeks on local banks. 2 Includes only collateral notes secured by United States war obligations, but not customers' paper thus secured. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MAY 1, 1019. FEDEEAL RESERVE BULLETIN. 429 f Rates of Interest in. the New York Market. of the Commercial and Financial Chronicle. Mr. Mitchell's method of computation was fol- Changes in interest rates for three tj^pes of lowed throughout, viz: in reducing the weekly paper in the New York market are shown in rates given in the source to monthly averages, the chart below. The rates for 1914 to 1918 each week was placed in that month in which are taken from the "Review of Economic Statistics77 issued by the Harvard Committee fell the majority of its days. Both the high and on Economic Research on January 1, 1919, and low figures were included in making the averages. the rates for the three months of 1919 are from (W. C. Mitchell, Business Cycles, p. 149.) the Bank and Quotation Section of the Com- The kinds of paper for which quotations were mercial and Financial Chronicle. For 1914 taken are as follows: and 1915 the Review of Economic Statistics 1. Good single-name commercial paper took the figures from W. C. Mitchell's articles running 4 to 6 months. in the Journal of Political Economy (v. 21, 2. Choice double-name commercial pap. 512; v. 24, p. 146): for 1916 and 1917 from per running 60 to 90 days. the Financial Review for 1918, p. 76 and 77, 3. Call loans at the New York Stock and for 1918 from the above-mentioned section Exchange. RATES OF INTEREST ON COMMERCIAL PAPER ANP ON CALL LOANS IN T/fENEIV YORK MARKET, 1914 TO 1319. Curve f: State on Jour-to-SCz Months 3a?Ler. Gzrve2:Jtateon Sixty - tv-Ninety ZkiyJhjier. O .- Sate on Cll C IBIS fSt? IBI8 I 1919 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

480 FEDERAL BESERVE BULLETIN. MAY 1, 1919. WAR OPERATIONS OF THE GERMAN Discounts and advances of the Reichsbank, REICHSBANK. which represent for the most part advances to the Imperial Government, were reported as Following is a statement based upon the 2,283 million marks on July 31, 1914, just weekly statements of the Reichsbank and the before the war broke out; 54 months later, on annual reports of the same institution. January 31, 1919, this amount had increased At the outbreak of the war the gold reserve nearly twelvefold, to 27,108 million marks. of the German Keichsbank was 1,253 million The increase during these four and one-half marks.1 Immediately upon the declaration years was not continuous, however, as will be of war the Government took measures to conseen by reference to the accompanying table serve and if possible to increase this reserve. and curve. There were large increases pre- Chief among these measures were the deposit ceding each great war loan which, came in by the Government of the war chest accumu- March and September of each year, followed lated since the Franco-Prussian war, prohibiby decided declines immediately after the contion of gold exports, and a widespread popular summation of each loan, the new level after campaign to induce the public to turn in the each peak, however, being higher than that gold in its possession. As early as 1909 the recorded for the months preceding the loans. Reichsbank notes had been made legal tender. The great increase in discounts and advances The gradual growth of the gold reserve conon dates immediately before the flotation of tinued until May 31, 1917, when it reached the the loans are due to borrowing by the Governmaximum of 2,567.1 million marks. Occament in anticipation of the proceeds of bond sional declines in the reserve were due to exsales and in a much smaller degree to borrowing ports of gold to neutral countries made for the by the public and by commercial banks for the purpose of affecting favorably the exchange purpose of making payments on the bonds. value of the mark. Such declines may be Upon receipt of the proceeds of the bonds the noted in the amount of gold reported on April Government would redeem the bulk of its un- 30, 1915, on June 3O 1917, and on April 30, 7 funded obligations held by the Reichsbank, 1918. These efforts, however, proved futile with the result that the amount of discounts in the face of excesses of imports over exports, and advances would show a sharp decline, and the mark exchange continued to fall. which, however, was not sufficient to bring the The signing of the armistice brought a slight amount back to the old level. The decline recovery during the remainder of the year. recorded after the eighth war loan in October, The Keichsbank report attributes this im- 1918, was not so great in proportion as those provement in part to the increasing difficulty following the previous loans, and after the of importing raw materials and in part to an signing of the armistice the bill holdings of the increasing demand for German marks, conbank increased by leaps and bounds from siderable amounts of which were known to be 20,686 millions on October 31 to 27,422 millions shipped clandestinely to evacuated territory on December 31, 1918, an increase of about and there exchanged at prevailing fixed rates, 6-7 billions during the two months. During which are much more favorable than market January, 1919, the figures showed a decline of rates. The increase in the gold reserve shown about 300 million marks. A comparison of the for September and October, 1918, may be due reports at the end of 1917 and at the end of to the receipts of gold exacted from Russia by 1918 shows that discounts and advances nearly the treaty of Brest-Litovsk. Since the signing doubled during the year, increasing from 14,596 of the armistice the gold reserve has declined millions to 27,422 millions. In explanation of from 2,550 million marks on October 31, 1918, the great increase in loans to the Government to 2,254 millions on January 31, 1919. the Reichsbank in its report for 1918 mentions that private capital showed strong re- 1 The mark nominally equals 23.8 cents. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MAY 1,1919. FEDERAL RESERVE BULLETIN. 431 luctance to invest in long-term securities and before the armistice, to January 31, 1919, the that considerable liquidation of Government volume of the Reichsbank notes in circulation securities was taking place, while at the same increased by nearly 7 billion marks, or by about time it became increasingly difficult for the 67 per cent in four months. A large portion of German Government to secure credits in these notes found their way into enemy terrineutral countries. As a consequence the large tories (Poland, Lithuania, Belgium, France; expenditures occasioned by demobilization etc.) occupied by the German armies, largely had to be met largely by loans obtained from as a result of the practice of th© German milithe Reichsfoank. tary to pay with German currency for requisi- On the other side of the balance sheet, the tioned supplies. demand liabilities of the Reichsbank, other The notes issued directly by the bank and than notes in circulation, i. e., largely demand shown in its balance sheet as a liability are not deposits of the Government, increased from all the paper currency circulating in the coun- 793 million marks at the end of 1913 to 1,759 try. Immediately after the beginning of the millions at the end of 1914, and continued to war the Government adopted the policy tried grow, reaching 2,359 millions in 1915, 4,563 out during previous wars and established a millions in 1916, 8,034 millions in 1917, and number of loan banks (Darlehenskassen) which 13,820 millions at the close of 1918. loaned money to the public on securities and Greater than the growth in deposit liabilities nonperishable commodities. These banks and more indicative of the trend of affairs is were authorized to issue their own notes the growth in fiduciary circulation. The (Darlehenskassenscheine) up to an amount Eeichsbank notes in circulation increased equivalent to the loans made by them. Acsteadily from the beginning of the war with cording to the original act establishing these slight declines following the flotation of the loan banks the total amount of their notes was loans, when as a result of cash payments by not to exceed 1,500 million marks. The law the public on subscriptions considerable provided, however, that this maximum oould amounts of bank notes would find their way be raised by order of the Federal Council back into the coffers of the Reichsbank and (Bundesrat). The first increase of this maxithereby decrease the amounts of outstanding mum was authorized as early as November 11, circulation. On July 31, 1914, there was a 1914. Since then further expansion became total of 2,904.4 million marks of notes in cir- necessary, as may be seen from the large inculation, by December 31 of the same year the creases in the reported amounts of these notes amount had increased to 5,049.9 millions. At outstanding. The notes were issued in small the end of 1915 notes outstanding were 6,917.9 denominations and obtained a wide circulamillion marks; at the end of 1916, 8,059.7 tion owing to the scarcity of subsidiary coins. million marks; at the end of 1917, 11,467.7 On August 31, 1914, there were 70 million million marks, and at the end of 1918, 22,188.0 marks of these notes in circulation; on Decemmillion marks. Since then the figure has in- ber 31 of the same year, 446 millions. Since creased further to 23,647.6 millions on January that time the amount has increased enor- 31, 1919. While the notes in circulation in- mously. At the end of 1917 it was 6,266 creased continuously throughout the war the millions; just before the armistice was signed ate of growth during the first three years of it was 9,430 millions and on January 31, 1919, r the war was comparatively moderate. During it was 10,170 millions. 1915 the rate of increase was about 37 per cent; {Statistics of the loan bank notes for August during 1916, 17 per cent; and during 1917, 42 31, 1914 and 1915, and monthly from August per cent; but during 1918 the note circulation 31,1916, to January 31, 1919, are shown in the increased 106 per cent. From October 31, just table following. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

432 FEDERAL KESERVE BULLETIN. MAY 1, 1919. Loan bank notes issued, held by the Reichsbank, and in The war operations of the Reichsbank have circulation. been very profitable. From 67 million marks [In millions of marks.] in 1914 net earnings rose to 106 million during 1915,, were somewhat lower in 1916 and 1917. Date. Total. J H b R a e e n l i d c k h . i i s n - In t c i i o rc n u . la- b li u o t n s r e in ac 1 h 9 e 1 d 8 . t he T h m e a r x a i t m e u o m f d f i i v g i u d r e e n d o s f 1 r 1 ec 1 e m iv i e l d by the shareholders based on the bank's 1914, Aug. 31.. 243 173 70 1915, Aug. 31.. 1.020 252 768 180,000,000 marks of capital was as follows: 1916, AUK. 31... 2,034 418 1,616 'Sept. 30.. 2,44.4 498 1,986 In 1914, 10.24 per cent; in 1915, 8.97 per cent; Oct. 31.. 2,528 338 2,190 Nov. 30.. 2,902 426 2,476 in 1916, 8.68 per cent; in 1917, 8.72 per cent; Dec. 31. - 3,408 534 2,874 1917, Jan. 31.. 3,458 388 3,070 and in 1918, 8.68 per cent. Feb. 28.. 3,826 450 3,376 Mar. 31.. 4,242 488 3,754 Apr. 30.. 4,512 614 3,898 | Net earnings of the German Reichsbank and their distribution. May 31.. 4,662 552 4,110 J J u u l n y e 3 3 1 0 . . . . 5 5 , , 0 35 7 2 6 5 6 5 2 4 8 4 4, . 7 5 2 2 4 2 i [In thousands of mar Vs.] Aug. 31. . o,860 776 5,084 i Sept. 29.. 6,524 i 1,094 5,430 1914 1915 1917 1918 Oct. 31 .. 6' 738 i 1, 132 : 5, 606 Nov. 30.. 7,024 ! 1,1.64 I 5,860 Dec. 31 -. 7,690 I 1,424 ! 6,266 1918, Jan. 31... 1,372 i 6,288 Net earnings 67,011 j 106,482 97,276 ! 110,839 M Fe a b r . . 2 3 8 0 . . . . 8 7 , , 3 9 2 6 6 2 I ! 1 1 , , 4 6 3 5 0 6 I i 6 6 , ,5 6 3 7 2 0 ! W Re a g r u t l a a x r tax • 42,498 j 5 3 0 4 , , 9 4 7 4 3 6 4 3 4 2 , , 0 8 6 3 9 5 1 \\ / 90,534 A M p a r y . 3 3 1 0 . . . . 8 8 , , 5 8 8 9 8 6 1 1 , , 6 7 5 2 0 6 j j 6 7 , , 9 1 3 7 8 0 R D e iv se id rv e e n d f s u nd ! ; 18 6 , , 4 0 4 7 2 1 1 4 6 , , 9 14 2 2 1 1 4 5 , , 6 6 9 8 1 1 ! ! 1 4 5 , , 3 6 6 3 8 7 June 29.. 9,474 1,892 j 7,582 July 31 -. 9,692 1,956 | 7,736 A Se u p s. t . 3 3 1 0 . . . 1 1 0 1 , , 5 5 1 0 4 2 2 2, , 7 2 5 7 6 8 i i 8 8 , , 7 2 4 3 6 6 The manner in which the distribution of net Oct. 30.. 12,606 i 3,176 I 9,430 earnings is calculated can best be explained by Nov. 30.. 14,112 4,122 9,990 Dec. 31.. 15,626 ! 5,518 ! 10,108 showing the actual distribution of the 1917 net- 1919, Jan. 31.. 16,158 ! 5,988 ! 10,170 earnings: 1 Including amounts held as cover lor treasury notes. Since Septem- Thousands ber, 1915, this amount has been 120 million marks. of marks- Net earnings for 1917 were 97, 276 To the 23,648 million marks of imperial bank From this amount deduct an amount equivalent to note circulation there should therefore be added the average of the net earnings for the three pre- 10,170 millions of loan bank notes, making a war years 1911-1913 38, 518 total of 33,818 million marks of fiduciary cur- Leaving excess net earnings of 58, 758 Of this excess three-fourths were allotted to the rencyissued by the two bank authorities. These Government 44,069 notes apparently are put into circulation This amount subtracted from the total net earnings largely by the Reichsbank, which receives them (97,276) leaves a balance of 53, 207 from the Darlehenskassen in exchange for its Normal minimum dividend to stockholders—3J own notes. The Reichsbank retains part of per cent on the paid-in capital of 180,000,000 marks 6, 300 the loan bank notes, which according to the Leaving a balance of 46, 907 law of August 4, 1914, may be counted as part Of this balance 10 per cent was transferred to of the bank's one-third legal reserve cover for special reserve against war losses 4,691 its own bank notes and to a limited extent also Leaving an amount for further distribution of 42,216 as cover for the 360 million treasury notes, the This amount was divided by assigning to the Govmaximum issue authorized at the outbreak of ernment three-fourths of the 46,907. (35,181) less one-half of the amount transferred to special the war. On January 31, 1919, 5,988 million reserve (2,346) 32, 835 marks of the loan bank notes were held in the And to the shareholders one-fourth of the 46,907 Reichsbank, which, added to the 10,170 millions (11,727) less one-half of the amount transferred in circulation, brings the total amount of such to special reserve (2,346) 9, 381 notes outstanding to 16,158 million marks, in- As a final result of these elaborate calculadicating that loans aggregating this amount tions the Government received 79 per cent of were made by the loan banks. the net earnings of 1917, the reserve fund re- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MAY 1,1919. FEDERAL RESERVE BULLETIN. 433 ceived 5 per cent, and the stockholders 16 per Gold reserve, notes in circulation, and discounts and advances of the German Reichsbank—Continued. cent. Had the distribution been made on the prewar basis, the Government would have received 68 per cent and the stockholders 32 per Gold in vault. Notes t i i n o n c . ircula- Di a s d co v u a n n t c s e a s. nd cent, so that the Government's share was Date. increased by about 8.7 million marks, the stock- Millions I Millions Millions I Millions Millions Millions of of of | of of of holders' share was reduced by about 13.5 million marks. dollars. marks, j dollars. marks. dollars. i marks, while the reserve fund against war 1915. losses, which is of course a war institution, was Sept. 30.. 2,419.4 575.8 6,157.6 1,465.5 7,483.7 1,781.1 Oct. 30... 2,428.8 578.1 5,946.4 1,415.2 4,225.4 1,005.6 credited with about 4.7 million marks, Nov. 30.. 2,435.3 579.6 5,999.4 1,427.9 4,687.5 1,115.6 Dec. 31... 2,445.2 582.0 6,917.9 1,646.5 5,816.2 1,384.3 A table showing the gold reserve, notes in 1916. circulation, and discounts and advances of the Jan. 31... 2,435.5 583.9 6,502.4 1,547.6 5,294.8 1,260.2 Feb. 29... 2,457.1 584.8 6,554.3 1,560.0 5,797.2 1,379.7 Reichsbank from the beginning of the war to Mar. 31... 2,460.1 585.5 6,9,88.1 1,663.2 8,124.4 1,933.6 Apr. 29... 2,461.8 585.9 6,696.9 1,593.9 5,138.1 1,222.9 January 31,1919, is appended hereto, followed May 31.... 2,464.4 586.5 6,737.6 1,603.5 5,507.9 1,310.9 June 30... 2,465.7 586.8 7,240.5 1,723.2 6,621.5 1,575.9 by a diagram illustrating the changes in these July 29.... 2,467.8 587.3 7,024.4 1,671.8 6,554.7 1,560.0 Aug. 31... 2,469.0 587.6 7,117.9 1,694.1 7,090.2 1,687.5 three items. Sept. 30... 2,484.8 591.4 7,370.0 1,754.1 10,769.3 2,563.1 Oct. 31.... 2,506.1 596.4 7:260.0- 1,727.9 7,891.4 1,878.2 Nov. 30.., 2,518.5 599.4 7,333.7 1,745.4 8,088.1 1,925.0 Dec. 30... 2,520.5 599.9 8,054.7 1,917.0 9,619.5 2,289.4 Gold reserve, notes in circulation, and discounts and advances of the German Reichsbank. 1917. Jan. 31.... 2,524.4 600.8 7,858.5 1,870.3 8,190.0 1,949.2 Feb. 28.... 2,527.3 601.5 8,107.2 1,929.5 8,997.9 2,141.5 Gold in vault. Notes t i i n o n c . ircula- Di a sc d o v u a n n t c s e a s. nd A M M p a a r y r . . 3 3 3 1 0 1 . . . . . . . . . . . . 2 2 2 , , , 5 5 5 3 6 3 2 7 0 . . . 6 1 6 6 6 61 0 0 1 2 2 . . . 0 8 3 8 8 8 , , , 2 3 6 8 1 1 5 5 6 - . . 4 2 0 2 1 1 , , , 0 9 9 5 7 7 0 1 9 . . . 6 9 1 1 8 9 3 , , , 7 3 6 1 6 0 4 4 6 . . . 8 5 0 2 3 2 , , , 2 0 2 2 7 3 8 8 4 . . . 8 1 2 June 30..., 2,457.3 584.8 8,698.7 2,070.3 10,962.5 2,609.1 Date.' July 31.... 2,402.2 571.7 8.852.7 2,106.9 11,127.8 2,648.4 Millions Millions Millions Millions Millions Millions Aug. 31... 2,403.0 571.9 9,337.1 2,222.2 11,364.6 2,704.8 of of of of of of Sept. 29... 2,404.0 572.2 10,204.9 2,428.8 15,632.5 3,720.5 marks. dollars. marks. dollars. marks. dollars. Oct. 23.... 2,404.5 572.3 10,138.7 2,413.0 11,553.1 2,749.6 Nov. 30... 2,405.3 572.5 10,622.3 2,528.1 12,234.2 2,911.7 Dec. 31.... 2,405.6 572.5 11,467.7 2,729.3 14,596.1 3,473.9 1914. July 31 1,253.2 298.3 2,909.4 692.4 2,283.3 543.4 1918. Aug. 31.. 1,556.5 370.4 4,234.9 1,007.9 4,855.0 1,155.5 Jan. 31.... 2,406.1 572.7 11,138.9 2,651.1 13,105.5 3,119.1 Sept. 30.. 1,716.1 408.4 4,490.9 1 068.8 4,786.4 1,139.2 Feb. 28.... 2,407.8 573.1 11,310.8 2,692.0 13,048.5 3,105.5 Oct. 31... 1,858.3 442.3 4,170.8 992.7 2,809.1 668.6 Mar. 30.... 2,408.5 573.2 11,977.8 2,850.7 16,034.3 3,816.2 Nov. 30.. 1,991.3 473.9 4,205.4 1.000.9 2,968.2 706.4 Apr. 30.... 2,344.0 557.9 11,820.8 2,813.4 13,887.8 3,305.3 Dec. 31... 2,077.2 498.1 5,045.9 i;200.9 3,959.4 942.3 May 31.... 2 345.7 558.3 12,002.7 2,856.6 14,644.7 3,461.7 June 29.... 2,346.2 558.4 12,510.4 2,977.5 16,670.9 3,967.7 1915, July 31.... 2,347.3 558.7 12,704.5 3,023.7 15,988.5 3,805.3 Jan. 15... 2,163.8 515.0 4,658.6 1,108.7 3,826.3 910.7 Aug. 31... 2,348.1 558.8 13,639.1 3,246.1 17,674.2 4,206.5 Feb. 27... 2,270.6 540.4 4,862-7 1,157.3 4,138.2 984.8 Sept. 30... 2,447.4 582.7 15,334.4 3,651.0 23.836.1 5,675.3 Mar. 31... 2,337.5 556.3 5,624.0 1,338.5 6,876.6 1,636.6 Oct. 31.... 2,550.0 607.1 16,661.6 3,967.0 20,685.8 4,925.2 Apr. 30...... 2,268.5 539.9 5,310.3 1,263.9 3,807.2 906.1 Nov. 30... 2,308.4 549.6 18,609.9 4,430.9 22,141.4 5,271.8 May 31... 2,379.5 566.3 5,317.9 1,265.7 4,164.4 991.1 Doc. 31.... 2,262.0 537.1 22,188.0 5,282.8 27,422.0 6,529.0 June 30... 2,387.6 568.2 5,840.3 1,390.0 4,933.4 1,174.1 July 31...... 2,400.7 571.4 5,538.2 1.318.1 4,801.6 1,142.8 1919. Aug. 31.. 2,410.2 573.6 5,564.3 1,324.3 4 957.0 1,179.8 Jan. 31.... 2,253.7 536.6 23,647.6 5,630.4 27,107.6 6,454.2 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

GOLD IN VAULT, BANK NOTES IN CIRCULATION, ETC., OF THE GERMAN REICHSBANK, SINCE THE OUTBREAK OF THE IYA, sooo 4500 w Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

M.4Y 1, 1910. FEDERAL RESERVE BULLETIN. 435 Central Banking in Belgium During the Period agreed to send a mission to London and also to of German Occupation.! Havre to request authority for the return of the treasure to Belgium. As was to be ex- A record of financial service to Belgium dur- pected, this request was refused. The German ing the period of occupation by the German authorities then decided to withdraw the privarmies is presented in the Annual Reports of ilege of note issue from the National Bank of the National Bank of Belgium and the Soeiete Belgium, ostensibly on the ground that they Generaie de Belgique for 1918.1 could not have dealings with the institution The following discussion is based largely on the while it was acting as fiscal agent of the Belgian reports of the two leading Belgian institutions, Government which had control of the cash and supplemented by data drawn from several con- notes of the bank. temporary sources. Belgium's liberation from There was some danger that the German German domination makes it possible for the authorities might establish in Belgium loan banks to tell the story of their struggle with the banks of the type of the German Oarlchensenemy, in which, despite overwhelming odds, kassen with the privilege of note issue. The the banks were able to stand their ground. Belgian banks saw in this plan a grave dan- When the war broke out financial commotion ger to the credit machinery and the busibordering on panic manifested itself in Bel- ness organization of the country. Another gium. In this emergency the banks joined effort was then made to obtain permission forces by forming, under the leadership of the from the Belgian authorities in Havre to Societe Generaie, a bank syndicate with a cap- return the note plates to Belgium, but the ital of 100,000,000 francs. The National Bank request was again refused. The Belgian minof Belgium agreed to discount the joint organ- ister of finance, however, gave a written asization's paper after the creation of a guarantee surance that under no circumstances would fund of 400,000,000 francs in securities. This the Belgian Government dispose of the metaction b}7 the Belgian banks put a temporary allic reserve of the National Bank or of the stop to the panic, but the German invasion plates or notes already printed. In case the continued, and soon Brussels was in the hands management of the National Bank in Havre, of the Germans. One of the principal objec- contrary to expectations, should proceed to the tives of the German financial commission which issue of notes it would notify the bank's execufollowed the army of occupation was to secure tive committee in advance, the issue would be the gold and securities of the National Bank made for the bank's account and the Belgian of Belgium, the country's bank of issue. In Government would not derive any profits from fact, the German military between August 10 the operation. and September 2 had seized a total of 8,515,000 In order to avoid the introduction into francs at the bank's branch offices at Hasselt, Belgium of currency under German control, the LiSge, Dinant, Mons, and Ath. Warned by leading banks, including the National Bank, these seizures, the head office of the bank after consulting with many prominent public avoided a similar experience by sending its men, agreed to have the Societe Generaie de metallic reserve amounting to about 300,000,- Belgique, the oldest banking corporation in 000 francs, its securities, supply of notes, and the country, assume the functions of a bank plates, for safekeeping to Antwerp, and. thence, of issue which it had performed prior to 1850. before Antwerp fell into the hands of the enemy, The Societe Generaie was to have an issue to the Bank of England. department only so long as the German occu- As a result of this precaution the bank's pation continued, and was to keep its accounts treasure was saved, but the bank was no. longer of receipts and disbursements in such manner able to supply the country with currency and as to make it possible to turn over the entire was facing a very serious situation. It issued department and all its profits to the National 200,000,000 francs of emergency notes ("billets Bank not later than three months after evacuade compte courant'1), but this issue was soon tion. The German authorities accepted this exhausted. The German authorities demanded action of the Belgian banks, but in publishing; the return of the notes and plates from London, the account of the arrangement they wrongly and, in order to gain time, the National Bank gave the impression that they had withdrawn the issue privilege from the National Bank as1 1 La Banque Nationale de Belgique sous 1'occupation aliemande. | 1914-1918. Rapport au Rpi, 1918. a punishment for its unwillingness to cooperate Societe Generate de Belgique, Compte Eendu a Passemblee generale with the invader and had of their own choice des actionnaires. Aunee, 1918. 115631—19 5 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

436 FEDERAL RESERVE BULLETIN. MAY 1, 1019. intrusted it to the Societe Generale de Bel- the Germans to discount and issue notes gique. As a matter of fact, they had merely against the short-term obligations ("bons") acquiesced in an arrangement previously made of the Belgian provincial authorities exacted by the banks and probably were not- cognizant from them in payment of the war contributions *of the full significance of the agreement imposed by the German military authorities, among the banks. The notes of the National who threatened in case of refusal to invest the Bank, of which there were about 1,600,000,000 debt obligations of the provincial governments francs in circulation, retained their legal- with legal-tender quality. This was a device tender quality. adopted by the Germans for the purpose of It may be of interest in. this connection to rendering immediately available the proceeds quote from Gen. von Bissing's official state- of contributions collected from the Belgian ment of December 22, 1914, in which he gives people. The bank was reluctant to assist the the German version of the conflict with the fiscal policy of the German military authori- National Bank: ties, But, after consulting many prominent Belgians, decided that it had no choice but to The actions of the National Bank and of the Belgian comply, as no good could come from its oppominister of finance are in violation of law and statutes. They violate the organic law by which the Belgian Gov- sition, since it was considered essential to keep ernment established the National Bank of Belgium and the privilege of note issue in the hands of a expose the country to a grave danger. For the Belgian Belgian institution. minister of finance could use the cash of the bank, the The National Bank was likewise closely confinancial reserve of the country, directly or indirectly for war purposes. The very foundation of the fiduciary cerned with the war contributions. After the currency amounting to 1,600,000,000 francs would thereby first few months, during which contributions be shaken. All this constitutes a grave menace to the were imposed on towns and municipalities as vital interests of the Belgian people. The German Govthe invasion proceeded, the German authoriernment finds itself confronted with the possibility that the Belgian Government, for the purpose of carrying on ties determined to impose contributions on warfare against the German authorities, may issue notes the nation as a whole and to have them of a bank operating in the occupied territory of Belgium.1 apportioned among the Provinces. As nearly It was apparently to meet this argument as can be estimated these contributions were that the Belgian Government gave a written as follows: assurance to the representative of the National Bank that no such proceedings would be Bate, Amount. undertaken during the war without the assent of the bank authorities. Francs. As early as September 26 the German mili- First contribution Dec. 10,1914 480,000,006 Second contri bution.. Nov. 10,1915 480,000,000 tary authorities issued an order to all the Bel- Third contribution -.. Nov. 20,1916 300,000,000 Fo. u_._rt_h con tribution.. May 21,1917 360,000,000 gian banks over the signature of Governor- Fifth contribution | Nov. 20,1917 360,000,000 General von der Goltz to the effect that they Sixth contribution I Mav 24,1918 300,000 000 "must not, during the war, conduct their Total for tine period of occupation.! 2,340,000,000 business in a manner contrary to German interests." This vague and comprehensive During the first two years payments were order led to many conflicts, to the arrest and demanded at the rate of 40,000,000 francs a deportation to Germany of the president of month; during the following six months at the the National Bank, and to many arbitrary rate of 50,000,000, and during the last two measures of the invaders. Of particular grav- years at the rate of 60,000,000. These ity proved the conflicts between the two note amounts, together with the approximately institutions and the German authorities in 200,000,000 francs of local contributions, bring connection with the war contributions imposed the total amount of war contributions to upon the country and with the transfer to more than 2,500,000,000 francs. Germany of the two banks' vault reserves. The German authorities collected the contributions through the banks of the country, and THE BANKS AND THE WAR CONTRIBUTIONS. the National Bank stood the brunt of the con- Soon after the establishment of the issue flict through remonstrances and passive resistdepartment of the Societe Generate it was ance against the exactions of. the invader. confronted with the demand on the part of Appeals were made to the governor-general, arguments based on The Hague convention i Gezets-und Verordnungsblatt fur die okkupierten Gebieto Belgians, were advanced, and in the case of the last two December 24,1914. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MAY 1,1919. FEDERAL RESERVE BULLETIN. 437 contributions appeals'! were made to the funds. The interest, however, was not to be Emperor himself. All these efforts, however, based on 750,000,000 francs, but on the current proved entirely useless. Further resistance exchange value of 600,000,000 marks, which appeared futile, and in order to ward off worse was considerably less than the arbitrary equivconsequences the National Bank decided to alent in francs.1 It is reported that since the., assist the other banks in financing these huge signing of the armistice these amounts have been payments by using the note issue power of the returned to the Belgian banks. Societe Generale. Only in the case of the During the occupation the Belgian banks second contribution did the bank persevere in had made efforts to maintain the Belgian note its determination to have nothing to do with circulation at as low a level as possible and to the payment, and this course of action cost the keep the German marks in actual circulation, bank a fine of 50,000 francs. in order to avoid their accumulation in the banks whence they were likely to be taken to .FORCIBLE REMOVAL OF THE JBAXKs' RESERVES. Berlin. After the armistice was signed the policy of the banks was reversed, and efforts Another grave conflict between the German were made to retire German marks from circuauthorities and the banks occurred as a result lation in Belgium. The amount involved was of the demand that the German marks in the very large, owing to the fact that the Germans vaults of the National Bank and the Societe had paid for what they requisitioned in Belgium Generale be delivered to the Germans for in German marks, and had required payments to shipment to Berlin. This demand seems to them to be made largely in Belgian francs, In have been prompted by the desire of the order to get control of these marks the banks Esichsbank authorities to improve the reserve agreed to accept 75 per cent of the subscriptions position of the Reichsbank through reduction to the postwar Government loan in marks. As of the volume of outstanding Reichsbank a result of this and of the return of the German notes, against which a minimum of one-third notes by the German Government, the Society cover had to be maintained and the trans- G&ierale and the National Bank have a claim formation of the bank's note liability into a on the German Government in the form of notes deposit liability which required no fixed estimated at between 5,000,000,000 and 7,500,reserve. German mark notes had circulated 000,000 marks, guaranteed to the banks by the in|Belgium at a compulsory rate of/exchange Belgian Government, which in turn has the of 1.25 francs per mark since the beginning of pledge of the German Government to redeem the occupation, and a large amount of these these marks at 1.25 francs per mark.2 notes had found its way into the vaults of the two leading banks. The German authorities RELIEF WORK. peremptorily ordered the Societe Generale and the Banque Nationale to give up their stock In addition to their service in safeguarding of German money, threatening to take posses- the currency of the nation both banks did a sion of the banks by force in case of refusal to great deal to help the various societies that comply. The banks realized that they were were working for Belgian relief. The Compowerless and agreed to offer no resistance, on mittee for Relief in Belgium (Comite National condition, however, that the German authori- de Secours et dJAlimentation) which operated ties themselves remove the funds so as to under the chairmanship of Mr. Ernest Solvay, emphasize the fact that this was an act of was granted by the Soci6te Generale a loan of violence. This was done early in September, 50,000,000 francs at a critical time, without 1916, the amount removed from the two banks security and without interest. In addition the on that date being 430,000,000 marks.1 bank subscribed 300,000 francs a year as its contribution to the cause. The bank also con- Together with removals on subsequent occatributed 100,000 francs to the antituberculosis sions, the total removals are stated to have campaign. been 600,000,000 marks, credited to the banks as 750,000,000 francs at the enforced rate of Nor did the Societe Generale confine its acexchange of 1.25 francs per mark. Interest at tivities to helping Belgians alone. During the the rate of 4 per cent was fixed to be paid by period of occupancy it loaned to France for the the German authorities on these removed aid of destitute French inhabitants in the in- 1 Journal dcs Eeonomistes, 15 No\>, 1916, p. 319. 1 Fernand Passelecq: Les deportations beiges a 1 a lumiere dcs 2 The larger estimate is from L'Economiste EELuropcen for Mar. 21, documents allemands. Paris, 1917, p. 159. 1919, p. 188. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

438 FEDERAL RESEKVE BULLETIN. MAY 1, 1919. vaded territories a total of 74,000,000 francs, much raw material and supplies from Belgian and to French towns and municipalities in the industrial establishments. Later they disinvaded region a total of 32,000,000 francs, so mounted a great many machines and carried that its assistance to the French people them bodily to Germany; still later, when the -amounted to over 100,000,000 francs. The shortage of iron, brass, and copper became National Bank, in its turn, did a great deal to acute, they did not hesitate to take the metals help the stricken Belgian population hj estab- from many costly plants, a large number of lishing throughout the country loan banks which were razed to the ground. What the from which small advances for indispensable Germans could not use they destroyed, so that living expenses secured by personal property the damage wrought to the industries of the could be obtained at 3 per cent. A cooperative country besides running into billions of francs mortgage loan association was also organized can not be repaired for many years to come. by the bank to help small owners of real estate. The decline in the production of coal in Bel- The bank also paid to needy persons and public gium, in spite of the great and continuous deinstitutions the interest on their holdings of mands of the military authorities, is indicative Belgian Government bonds, the total outlay of the decline in Belgian industries. The coal for this purpose amounting to 200,000,000 companies controlled'by the Societe Generaie, francs. which produced over 5,000,000 metric tons of Both the Societe Generaie and the National coal in 1913, yielded only 3,000,000 metric Bank utilized Paris and London credits to tons, or 60 per cent of the 1913 amount, in arrange secretly for advances to their Belgian 1918. In the fall of 1918 the coal mines in'the customers living abroad. The German authori- Mons region were greatly endangered by the ties imposed a fine of 312,500 francs on the military situation. As the German armies Societe Generaie on the mere suspicion of these retreated the general staff decided to destroy activities. The National Bank also used its the mines. All work was stopped. Pumping connection .with the Swiss National Bank and and ventilating were discontinued, and orders the Nederlandsche Bank to assist in the trans- were issued to blow up the machinery. It was mittal of money and goods by Belgians to their only as the consequence of threats of retaliation relatives held prisoners in Germany. by the allies that this catastrophe was averted Immediately after Germany's withdrawal and that, instead of destroying the machines, from Belgium the Societe" Generaie restored the the Germans confined themselves to removdepartment of issue to the National Bank and ing essential portions of the machinery. The consummated the original plan of administer- same treatment was accorded to the coal mines ing the note issue function merely as a trust in the Hainaut region lying between the French for the central National Bank, which was thus frontier and Brussels. able to resume its normal functions as soon as the country regained its independence.1 Trust Powers of National Banks. PROPERTY DESTRUCTION BY THE GERMAN AUTHORITIES. The following regulation, relating to the exercise by national banks of trust powers While the Soci6te Gen&rale, the National authorized under the provisions of section 11, Bank and other financial institutions of Belgium were making every effort to maintain the subsection (k), of the Federal Reserve Act economic life of the country during the occu- as amended by the act of September 26, 1918, pation, the German authorities were actively was issued by the Federal Reserve Board on endeavoring to ruin Belgian industry. Soon April 15: after the occupation the Germans removed (Regulation F. series of 1919. Superseding Regulation F of 1917.) 1 Dunns the period of occupation the Societe Generale issued about 1,500,000,000 francs of notes. The notes in circulation on different dates were as follows: I. STATUTORY PROVISIONS. Franca. Nov. 18, 1915 543,216,000 The Federal Reserve Act as amended by the act of Dec. 28, 1916 849.968! 000 September 26, 1918, provides in part: Dec. 20, 1917 ],, 118,649.000 Sept. 2(5, 1918 1,452,947,000 SEC. 11. The Federal Reserve Board shall be author- The total circulation of Belgian bank notes, including the outstanding ized and empowered: notos of the National Bank, amounted, therefore, at the close of German occupation to about 3,000,000,000 francs, covered by a metallic reserve (k) To grant by special permit to national banks applyof about 300,000,000 francs of gold and silver held in the Bank of England and repatriated since. ing therefor, when net in contravention of State or local Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

M,IY 1, 1919. .FEDERAL RESERVE BULLETIN, 439 law, the right to act as trustee, executor, administrator an oath or make an affidavit, the president, vice presiregistrar of stocks and bonds, guardian of estates, assignee, dent, cashier, or trust officer of such national bank may receiver, committee of estates of lunatics, or in any other take the necessary oath or execute the necessary affidavit. fiduciary capacity in which State banks, trust companies, It shall be unlawful for any national banking associaor other corporations which come into competition with tion to lend any officer, director, or employee any funds national banks are permitted to act under the laws of the held in trust under the powers conferred by this section. State in which the national bank is located. Any officer, director, or employee making such loan, or Whenever the laws of such State authorize or permit to whom such loan is made, may be fined not more than the exercise of any or all of the foregoing powers by State $5,000, or imprisoned not more than five years, or may be banks, trust companies, or other corporations which com- both fined and imprisoned, in the discretion of the court. pete with national banks, the granting to and the exercise In passing upon applications for permission to exercise of such powers by national banks shall not be deemed the powers enumerated in this subsection, the Federal to be in contravention of State or local law within the Reserve Board may take into consideration the amount of meaning of this act. capital and surplus of the applying bank, whether or not National banks exercising any or all of the powers such capital and surplus is sufficient under the circumenumerated in this subsection shall segregate all assets stances of the case, the needs of the community to be held in any fiduciary capacity from the general assets served, and any other facts and circumstances that seem of the bank and shall keep a separate set of books and to it proper, and may grant or refuse the application accordrecords showing in proper detail all transactions engaged ingly: Provided, That no permit shall be issued to any in under authority of this subsection. Such books and national banking association having a capital and surplus records shall be open to inspection by the State authorities less than the capital and surplus required by State law to the same extent as the books and records of corporations of State banks, trust companies, and corporations exercisorganized under State law which exercise fiduciary powers, ing such powers. but nothing in this act shall be construed as authorizing II. APPLICATIONS. the State authorities to examine the books, records, and A national bank desiring to exercise any or all of the assets of the national "bank which are not held in trust powers authorized by section 11 (k) of the Federal Reserve under authority of this subsection. Act, as amended by the act of September 26, 1918, shall No national bank shall receive in its trust department make application to the Federal Reserve Board, on a form deposits of current funds subject to check or the deposit approved by said Board, for a special permit authorizing of checks, drafts, bills of exchange, or other items- for it to exercise such powers. In the case of an original applicollection or exchange purposes. Funds deposited or cation—that is, where the applying bank has never been held in trust by the bank awaiting investment shall be granted the right to exercise any of the powers authorized carried in a separate account and shall not be used by by section 11 (k), the application should be made on Form the bank in the conduct of its business unless it shall 61. In the case of a supplemental application—that is, first set aside in the trust department United States where the applying bank has already been granted the bonds or other securities approved by the .Federal Reserve right to exercise one or more of the powers authorized by Board. section 11 (k). the application should be made on Form In the event of the failure of such bank the owners 61-b. Both forms are made a part of this regulation and O.L the funds held in trust for investment shall have a lien may be obtained from the Federal Reserve Board or any on the bonds or other securities so set apart in addition Federal Reserve Bank. to their claim against the estate of the bank. Whenever the laws of a State require corporations III. SEPARATE DEPARTMENTS. acting in a fiduciary capacity to deposit securities with the State authorities for the protection of private or court Every national bank permitted to act under this section trusts, national banks so acting shall be required to make shall establish a separate trust department, and shall place such department under the management of an officer or similar deposits and securities so deposited shall be held officers, whose duties shall be prescribed by the board of for the protection of private or court trusts, as provided by directors of the bank. the State law. National banks in such cases shall not be required to •IV. CUSTODY OF TRUST SECURITIES AND INVESTMENTS. execute the bond usually required of individuals if State corporations under similar circumstances are exempt The securities and investments held in each trust shall from this requirement. National banks shall have power be kept separate and distinct from the securities owned by to execute such bond when so required by the laws of the bank and separate and distinct from one another. the State. Trust securities and investments shall be placed in the In any case in which the laws of a State require that a joint custody of two or more officers or other employees corporation acting as trustee, executor, administrator, designated by the board of directors of the bank and all •r in any capacity specified in this section, shall take such officers and employees shall be bonded. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

440 FEDERAL RESERVE BULLETIN. MAY 1, 1919. V. DEPOSIT OP FUNDS AWAITING INVESTMENT OR cash, securities, accounts, and investments of the trust DISTRIBUTION. department of the bank at the same time that examina tion is made of the banking department. Funds received or held in the trust department of a national bank awaiting investment or distribution may be IX. CONFORMITY WITH STATE LAWS. deposited in the commercial department of the bank to the credit of the trust department, provided that the bank Nothing in these regulations shall be construed to give first delivers to the trust department, as collateral security, a national bank exercising the powers permitted under the United States bonds, or other readily marketable securities provisions of section II (k) of the Federal Reserve Act, as owned by the bank, equal in market value to the amount amended, any rights or privileges in contravention of the of the funds so deposited. laws of the State in which the bank is located within the meaning of that act. VI. INVESTMENT OF TRUST FUNDS. (a) Private trusts.—Funds held in trust must be invested X. REVOCATION OP PERMITS. in strict accordance with the terms of the will, deed, or The Federal Reserve Board reserves the right to revoke other instrument creating the trust. Where the instrupermits granted under the provisions of section 11 (k) ment creating the trust contains provisions authorizing the y as amended, in any case where in the opinion of the board bank, its officers, or its directors to exercise their discretion a bank has willfully violated the provisions of the Federal in the matter of investments, funds held in trust may be Reserve Act or of these regulations or the laws of any invested only in those classes of securities which are State relating to the operations of such bank when acting approved by the directors of the bank. Where the instruin any of the capacities permitted under the provisions of ment creating the trust does not specify the character or section 11 (k), as amended. class of investments to be made and does not expressly vest in the bank, its officers, or its directors a discretion in XI. CHANGES IN REGULATIONS. the matter of investments, funds held in trust shall be invested in any securities in which corporate or individual These regulations are subject to change by the Federal fiduciaries in the State in which the bank is located may Reserve Board; provided, however, that no such change lawfully invest. shall prejudice any obligation undertaken in good faith (h) Court trusts.—Except as hereinafter provided, a under regulations in effect at the time the obligation was national bank acting as executor, administrator, or in any assumed. other fiduciary capacity, under appointment by a court of competent jurisdiction, shall make all investments under an order of that court, and copies of all such orders Acceptance Liabilities of Member Banks. shall be filed and preserved with the records of the trust department of the bank. If the court by general order In the table below are given figures showing rests a discretion in the national bank to invest funds held changes in acceptance liabilities of national in trust, or, if under the laws of the State in which the bank banks and other member banks of the Federal is located corporate fiduciaries appointed by the court Reserve system. Since November 1 of the are permitted to exercise such discretion, the national bank so appointed may invest such funds in any securities past year these liabilities show a continuous in which corporate or individual fiduciaries in the State decline from $521,823,000 to $480,624,000 on in which the bank is located may lawfully invest. December 31, 1918, and $451,264,000 on VII. BOOKS AND ACCOUNTS. March 4 of the present year. The latter total All books and records of the trust department shall oe is made up of 8269,173,000 of acceptance liakept separate and distinct from other books and records bilities of national banks and $182,091,000 of of the bank. All accounts opened shall be so kept as to like liabilities of other member banks. Of the enable the national bank at any time to furnish information latter total $124,485,000 represents acceptance or reports required by the Federal or State authorities, liabilities of the New York trust company and and such books and records shall be opened to the inspection of such authorities. State bank members, $14,998,000 of like liabilities of Boston trust company members, and VIII. EXAMINATIONS. $42,608,000 aggregate acceptance liabilities of Examiners appointed by the Comptroller of the Cur- State bank and trust company members outrency or designated by the Federal Reserve Board will be side these two cities. instructed to make thorough and complete audits of the Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MAY 1, 1919. FSEEBAL RESERVE BULLETIN. 441 Acceptance liabilities of national and other member hanks. [In thousands of dollars; i.e. 000 omitted.] [In thousands of dollars; i. e.? 000 omitted.] Dec. 31, Feb. 28, | Mar. 31, 1918. 1919. i 1919. i Aug. 31, I\ov. 1, Dec. 31, Mar. 4, 1 11O911O8. 1918. 1918. 1919. Bills accepted by: Member banks 234,323 219,423 185,207 Nonmember trust companies 2,545 2,418 2,172 New York jU03,201 136,742 ; 120,897 112,762 Nonmember State banks 10,442 15,110 15,561 Boston | 42,356 49,133 ! 44,170 41,723 Private banks 19,740 22,062 15,263 Philadelphia i 10,418 25,633 j 19,995 15,418 Foreign bank branches and agencies. 12,994 13,586 12,885 Pittsburgh i 2.896 5,484 4,664 4,290 Cleveland I 7; 478 6,999 8,168 6,651 Total bank acceptances j 280,244 271,488 j 231,088 Detroit 920 1.699 2,700 1,629 Trade acceptances: I Cincinnati 763 '563 i '659 2,494 Domestic 2,536 730 ! 319 R In i d c i h a m na o p n o d lis 2 1, , 0 7 9 2 7 1 4 1 , ,8 2 3 7 0 0 j j 4 1 , , 8 71 1 8 5 4 1 , ,5 4 1 3 0 0 Foreign j 4,388 3,691 ; 4,207 Baltimore 4,412 1,135 i i;066 1.638 Total acceptances j 287,168 I 276,920 i 235,614 A Ne tl w an O ta rleans 5 3 0 4 0 8 2,3 7 9 3 3 9 i ! 2,7 9 3 8 4 4 1 ' , 3 98 1 2 7 ! Charleston, S. C 1,074 1,511 1,505 1,353 Chicago 20,967 26,859 I 29,677 21,032 Loans on Security of Liberty Bonds. St. Louis 1,179 9.535 ! 11,837 11,928 Minneapolis 7,509 8.536 i 3,374 1,635 Dallas 3,075 ! 2,940 1,325 The Comptroller of the Currency on April 27 San Francisco 11,057 9,909 I 9,627 11,870 Portland, Oreg 1,722 5,493 ! 3,323 2,864 issued the following: Seattle 794 1,169 1,301 1,089 Allother 12,881 29,952 28,947 21.233 By authority of acts of Congress approved September 24, All national banks 243,772 832,719 305,101 269,173 1918, and March 3, 1919, the Comptroller of the Currency Other member banks. 189,104 175,523 182,091 has to-day issued a regulation, approved by the Secretary Total member banks... 521,823 480,024 451,264 of the Treasury, extending until January 1,1920, the period 1 Including figures for Brooklyn and Bronx. 2 No data. in which national banks are permitted to make loans to customers on the security of Liberty bonds and Victory On the last-named three dates the Federal loan notes in excess of 10 per cent of their capital and sur- Reserve Banks report the following holdings plus as provided for by section 5200, United States Revised of paper bought in the open market: Statutes, as amended. The ruling substantially removes all limitation on loans by national banks, where Liberty Nov. 1,1918 8377,066,000 bonds or Victory loan notes are deposited as security for Dec. 31, 1918 292,196,000 loans to the extent of not less than 105 per cent of the Mar. 4,1919 266,176,000 amount borrowed. These holdings are made up of bills accepted An analysis of the reports of all national banks as of March 4, 1919, shows that although a majority of the 17 by both member and nonmember banks, also billion dollars of Liberty bonds issued were placed by by private and foreign banks and of a small national banks, nearly all of the bonds so placed went to amount of trade acceptances. On December the customers of the banks and not to the banks themselves. 31, 1918, for instance, the Federal Reserve The total amount of Liberty bonds of all four issues held by Banks held $234,323,000 member bank accep- national banks March 4,1919, was only 872 million dollars, or less than 5.2 per cent of the total amount of Liberty tances, or about 80 per cent of the total of this bonds sold. The records also tell us that the total amount class of acceptances outstanding on that date. of money which the national banks were lending on On February 28 these holdings were $219,423,- March 4 on the security of Liberty bonds was only 973 000, or nearly 82 per cent of the total member million dollars, or 4.86 per cent of their total resources. bank acceptance liabilities reported four days These figures show that if there should be deducted from the total resources of the national banks on March 4, 1919, later. their aggregate holdings of Liberty bonds plus the total As throwing further light on the total accepamount of money which they are loaning on Liberty bonds, tances afloat in the United States, the following their resources would still be 2,193 million dollars more than figures giving classified acceptance holdings of | they were on March 5,1917, a month before our declaration the Federal Reserve Banks on the last of De- | of "war. j In addition to their holdings ci Liberty bonds, the nacember, 1918, and of February and March of I tional banks owned March 4, last. 1,870 million dollars of the present year may be of interest: j United States certificates of indebtedness. The amount Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

44.2 FEDERAL RESEBVE BULLETIN. MAY 1, 1919. of money which they reported to be lending to their cus- each. In no one of the States of Maine, Delaware, Montomers and correspondents on United States certificates of tana, Wyoming, Colorado, New Mexico, L'tah, Nevada, indentedness was only 40 million dollars. and Arizona did the loans made by country national banks on Liberty bonds amount to as much as one million dollars. LIBERTY BONDS OWNED BY NATIONAL BANKS. Of the 872 million dollars of Liberty bonds owned by all BANKS WELL FIXED TO ACCOMMODATE BORROWERS ON the national banks March 4, last, the three central reserve VICTORY NOTES. cities of New York, Chicago, and St. Louis held 135 million, These figures indicate that our national banks have only and all other reserve cities held 225 million; while the in- a small fraction of their resources invested either in Liberty vestments of the country banks in Liberty bonds amounted bonds or in loans secured by Liberty bonds, and that these to 512 million dollars. banks are now in a particularly favorable position to assist The central reserve and reserve cities whose holdings of in making the present Victory loan an overwhelming Liberty bonds amounted to 5 million dollars or more were: success. New York, 123 million dollars; Pittsburgh, 26 million; Philadelphia, 23 million; San Francisco, 14 million; Wash- Victory Liberty Loan. ington, 13 million; Nashville and St. Paul, 8 million each; Richmond and Cleveland, 7 million each; Baltimore, Chi- Department Circular No. 138, issued by the cago, and Detroit, 6 million each; Boston, Houston, Kan- Treasury Department on April 21, 1919, relasas City, and St. Louis, 5 million each. tive to the Victory loan, is as follows: The States whose country national banks owned March 4, last 10 million dollars or more of Liberty bonds were, in the The Secretary of the Treasury invites subscriptions, at order named: Pennsylvania, 95 million dollars; New par and accrued interest, from the people of the United York, 54 million; New Jersey, 35 million; Illinois, 23 States, for $4,500,000,000 of United States of America conmillion; Massachusetts, 22 million; Ohio and Indiana, 18 vertible gold notes of 1922-1923 of the Victory Liberty million each; Virginia and Texas, 15 million each; Cali- loan, authorized by an act of Congress approved Septemfornia, 14 million; Connecticut and Iowa, 12 million each ber 24, 1917, as amended and supplemented by the acts West Virginia, Oklahoma, North Carolina, South Carolina, of Congress approved April 4, July 9, and September 24, and Michigan, 10 million each. 1918, and March 3, 1919 (Victory Liberty ioan act). The By geographical sections, the bonds of the four Liberty notes are offered in two series. loans held by the national banks in the New England States aggregated 54 million dollars; in the Eastern States, 394 DESCRIPTION OF NOTES. million; in the Southern States, 156 million; in the Middle Four and three-quarters per cent series.—The 4J per cent States, 164 million; in the Western States, 49 million: in convertible gold notes of 1922-1923 shall be exempt, both the Pacific States, 55 million. as to principal and interest, from all taxation now or hereafter imposed by the United States, any State, or any of LOANS ON LIBERTY BONDS BY NATIONAL BANKS. the possessions of the United States, or by any local taxing Of the 973 million dollars loaned hy the national banks authority, except (a) estate or inheritance taxes, and on Liberty bonds, 103 million dollars were loaned by na- (b) graduated additional income taxes, commonly known tional banks in the New England States, 585 million in as surtaxes, and excess-profits and war-profits taxes, now the Eastern States; 90 million in the Southern States, 146 or hereafter imposed by the United States, upon the inmillion in the Middle States, 18 million in the Western come or profits of individuals,, partnerships, associations, States, and 31 million in the Pacific States. or corporations. The notes of said series shall bear interest The central reserve and reserve cities whose national at the rate of 4| per cent per annum. banks on March 4, 1919, were lending on Liberty bonds as Three and three-quarters per cent series.—The 3J per cent much as 10 million dollars or more were, in the order convertible gold notes of 1922-1923 shall be exempt, both named: New York. 332 million; Philadelphia, 109 million as to principal and interest, from all taxation (except Boston, 51 million; Chicago, 38 million; Pittsburgh, 34 estate or inheritance taxes) now or hereafter imposed by million; Cleveland, 24 million; Richmond, 17 million; the United States, any State, or any of the possessions of San Francisco, 11 million; Baltimore, 10 million. the United States, or by any local taxing authority. The The only States whose country national banks were loan- notes of said series shall bear interest at the rate of 3f per ing an aggregate of as much as 5 million dollars or more on cent per annum. Liberty bonds were: New York, 30 million dollars; Massa- Denominations; both series.—Bearer notes with interest chusetts, 29 million; Pennsylvania, 28 million; New Jer- coupons attached will be issued in denominations of 150, sey, 22 million; Connecticut, 14 million; Virginia, 8 mil- $100, $500, §1,000, |5,000, and 110,000. Notes registered lion; Texas and Ohio, 7 million each; Illinois and Califor- as to principal, and as to interest payable after December nia, 6 million each; South Carolina and Indiana, 5 million 15, 1919, will be issued in denominations of S50, $100, Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MAY 1, 1919. FEDERAL EESEUVE BULLETIN. 443 $500, $1,000,15,000, $10,000, $50,000, and §100,000. Such of conversion continues throughout the life of the notes registered notes will have coupons attached thereto for subject to the provisions hereof and of such rules and interest payable December 15, 1919. Provision will be regulations. made for the interchange of notes of different denominations and of coupon and registered notes and for the trans- MISCELLANEOUS PROVISIONS OF LAW AND REGULATIONS, fer of registered notes, without charge by the United States, Additional tax exemption for Liberty bonds.—In addition under rules and regulations prescribed by the Secretary to ail other exemptions provided by law, the interest reof the Treasury. ceived on and after January 1,1919, on an amount of bonds Date of notes, interest dates, maturity, and redemption; of the first Liberty loan converted, dated November 15. both series.—The notes will be dated and bear interest 1917, May 9, 1918, or October 24,1918, the second Liberty from May 20, 1919, and will mature on May 20, 1923. loan, converted and unconverted, the third Liberty loan, Interest will be payable on December 15, 1919, and there- and the fourth Liberty loan, the principal of which does after semiannually on June 15 and December 15, and on not exceed $20,000 in the aggregate, owned by any indi- May 20, 1923. The principal and interest of the notes vidual, partnership, association," or corporation, shall be are payable in United States gold coin of the present exempt from graduated additional income taxes, comstandard of value. The notes may be redeemed, at the monly known as surtaxes, and excess-profits and waroption of the United States, under such rules and regula- profits taxes, now or hereafter imposed by the United tions as the Secretary of the Treasury may prescribe, on States, upon the income or profits of individuals, partner- June 15 or December 15, 1922, in whole or in part, as to ships, associations, or corporations: Provided, That no either or both series, at par and accrued interest, on four owner of such bonds shall be entitled to such additional months' notice of redemption given in such manner as exemption in respect to the interest ©n an aggregate printhe Secretary of the Treasury shall prescribe. In case of cipal amount of such bonds exceeding three times the partial redemption of either or both series, the notes to principal amount of notes of the Victory Liberty loan be redeemed will be determined by such method as may originally subscribed for by such owner and still owned be prescribed by the Secretary of the Treasury. For by him at the date of his tax return. convenience in case of any partial redemption, the notes Note purchase fund.—The Secretary of the Treasury is will be issued in several blocks of approximately equal authorized, from time to time, until the expiration of one face amount and bearing distinguishing letters. From year after the termination of the war (as fixed by proclathe date of redemption designated in any such notice of mation of the President), to purchase notes of this issue redemption interest on notes called for redemption shall at such prices and upon such terms and conditions as he cease. may prescribe. The par amount of notes of this issue Conversion privilege.—Any holder of notes of either which may be purchased in the 12 months' period beginseries shall have the option of having the notes held by ning on the date of issue shall not exceed one-twentieth him converted at par into notes of the other series, with of the par amount of such notes originally issued, and in adjustment in rlspect, to accrued interest but otherwise each 12 months' period thereafter shall not exceed onewithout charge by the United States, under such rules twentieth of the amount of the notes of such issue outand regulations as may be prescribed by the Secretary standing at the beginning of such 12 months' period. The of the Treasury. Such rules and regulations may pro- average cost of the notes of this issue purchased in any vide for the suspension of 3uch privilege of conversion such 12 months' period shall not exceed par and accrued from time to time, in respect to all or any part of the interest. notes of either or both series, (a) to and including July Cumulative sinking fund.—The Victory Liberty Loan 15, 1919, to facilitate deliveries upon the original issue, Act provides in section 6 (a) as follows: "That there is (b) for a period not exceeding one month before any in- hereby created in the Treasury a cumulative sinking fund terest payment date, and (c) for the period, or any por- for the retirement of bonds and notes issued under the first tion thereof, from the date of any notice of redemption Liberty bond act, the second Liberty bond act, the third (but not more than four months and one week prior to Liberty bond act, the fourth Liberty bond act, or under the date of redemption) to and including the date of this act and outstanding on July 1, 1920. The sinking redemption designated in such notice. In any event, on fund and ail additions thereto are hereby appropriated for the date of redemption designated in any such notice of the payment of such bonds and notes at maturity, or for redemption the privilege of conversion of all notes thereby the redemption or purchase thereof before maturity by called for redemption shall cease, and if all the notes of the Secretary of the Treasury at such prices and upon such either series be called for redemption, the privilege of terms and conditions as he shall prescribe, and shall be conversion of notes of the other series shall cease. The available until all such bonds and notes are retired. The notes are interconvertible, the privilege of conversion average cost of the bonds and notes purchased shall not extending to notes issued upon conversion as well as exceed par and accrued interest. Bonds and notes purnotes issued upon original subscription. The privilege chased, redeemed, or paid out of the sinking fund shall 115631—19 6 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

444 FEDEEAL RESERVE BULLETIN. MAY 1, 1919. be canceled and retired and shall not be reissued. For dering the service to subscribers as a patriotic duty. the fiscal year beginning July 1, 1920, and for each fiscal Only the Federal Reserve Banks are authorized to act as year thereafter, until all such bonds and notes are retired fiscal agents of the United States in connection with the there is hereby appropriated, out of any money in the operations of selling and delivering notes of the Victory Treasury not otherwise appropriated, for the purposes of Liberty loan. such sinking fund, an amount equal to the sum of (1) 2J Terms of application.—Applications must be accomper centum of the aggregate amount of such bonds and panied by payment of 10 per cent of the amount of notes notes outstanding on July 1, 1920, less an amount equal applied for. No payment other than the 10 per cent to the par amount of any obligations of foreign Govern- required upon application should accompany any appliments held by the United States on July 1, 1920, and (2) cation for an aggregate amount of notes in excess of SI0,000. 1>he interest which would have been payable during the Applications for an aggregate amount of notes not in exces fiscal year for which the appropriation is made on the of $10,000 may, at the option of the subscriber, be accombonds and notes purchased, redeemed, or paid out of the panied by payment in full, at face value without interest, sinking fund during such year or in previous years." for the note or notes applied for. Applications must be Further privileges.—The notes will be receivable as se- for notes to an amount of $50 or some multiple thereof. curity for deposits of public moneys, but will not bear the The subscriber should indicate on the application blank circulation privilege. whether coupon or registered notes are desired; if no preference is indicated, either coupon notes or registered APPLICATION, ALLOTMENT. PAYMENT, AND DELIVERY. notes may be delivered. All applications will be deemed Official agencies.—The agencies designated by the Sec-to be for notes of the 4| per cent series, except applicaretary of the Treasury to receive applications for the notes tions specifying notes of the 3| per cent series; but the now offered are the Treasury Department in Washington, subscriber may, nevertheless, at any time before compleand the Federal Reserve Banks in Boston, New York, tion of payment, by notice in writing, elect to receive Philadelphia, Cleveland (with branches at Cincinnati notes of either series in the first instance. and Pittsburgh), Richmond (with branch at Baltimore). Time of closing application books*—Applications accom- Atlanta (with branches at New Orleans, Birmingham, panied by payment as aforesaid must reach the Treasury and Jacksonville), Chicago (with branch at Detroit), St. Department or a Federal Reserve Bank, or one of said Louis (with branches at Little Rock, Louisville, and branches, or some incorporated bank or trust company Memphis), Minneapolis, Kansas City (with branches at within the United States (not including outlying terri- Omaha and Denver), Dallas (with branch at El Paso) tories and possessions), not later than the close of business and San Francisco (with branches at Salt Lake City, on May 10, 1919. Applications received by any incor- Portland, Seattle, and Spokane). The Federal Reserve porated bank or trust company on or before May 10. 1919, Banks have been designated as fiscal agents of the United must, by such bank or trust company, be transmitted to, States, to receive applications, to give notices of allot- or covered by its own subscription to. the Federal Reserve ments, to receive payments, and to make delivery of the Bank, of the district in which it is located, reaching such notes allotted. Subscribers may send their applications, Federal Reserve Bank not later than the close of business accompanied by the required payment, direct to any of on May 20, 1919, accompanied by payment as aforesaid. said banks or branches. The right is reserved by the Secretary of the Treasury to Subscribers' agencies.—Large numbers of National banks,close the subscription on any earlier date, to reject any State banks, and trust companies, investment bankers, applications, and to waive delay in making application express companies, newspapers, department stores, and and payment. t other corporations, firms, and organizations have patrioti- Allotment.—Applications from any one subscriber for cally offered to receive and transmit applications for the an aggregate amount of notes not in excess of $10,000 will notes without expense to the applicants. The Secretary be allotted in full. Applications for an aggregate amount of the Treasury appreciates the value of these offers, and of notes in excess of $10,000 will be received subject to will have application blanks widely distributed, through allotment. The issue will be limited to §4,500,000.000, the Federal Reserve Banks, to these institutions through- except as it may be necessary to increase the amount of out the country. Subscribers' agencies must transmit or the issue in order to make allotment in full on applications cover by their own subscriptions all applications received from subscribers for aggregate amounts of notes not in by them; in the latter case they must specify the number excess of §10,000, and except as it may be necessary to of subscribers and the aggregate amount of notes sub- increase or decrease the amount of the issue in order to scribed for by each and furnish such further information facilitate allotment, and the Secretary of the Treasury as may be prescribed by the Secretary of the Treasury; reserves the right to reject any application for an aggregate and allotment may be based upon such information. No amount of notes in excess of $10,000, to make allotment of commissions will be paid upon subscriptions, and those part of the amount of notes applied for, to make allotment who receive and transmit applications are therefore ren- in full upon applications for smaller amounts, and to make Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MAY 1,1919. FEDERAL RESERVE BULLETIN. 445 reduced allotments upon, or to reject, applications for without interest. In case of the rejection of any applicalarger amounts, and to make classified allotments and tion, the 10 per cent payment made with the application allotments upon a graduated scale; and his action in these will be returned as promptly as possible without interest. respects will be final. The Secretary of the Treasury can Payment in United States Treasury certificates of indebtednot undertake to collate applications with a view to the ness.—Payment of (1) the first installment of 10 per cent precise ascertainment of the aggregate amount of notes upon application, or (2) completion of payment upon applied for by each subscriber and, while reserving the application, or on May 20, 1919, when and as permitted right to reject any application or to reduce the amount of hereunder, or (3) completion of payment on the date or notes applied for in any case where it appears that the dates, not earlier than June 3, nor later than June 17, aggregate amount of notes applied for by any one sub- 1919, named in the announcement of allotments, when scriber is not truly shown on the face of any one applica- and as permitted hereunder, may be made in Treasury tion, the allotment may be based upon the several appli- certificates of indebtedness of Series V of any issue not cations and reports filed with the several Federal Reserve previously matured. Payment on July 15, 1919, and Banks and the Treasury Department and without colla- subsequent installment dates, may be made in Treasury tion within or as between the said banks and the Treasury certificates of the issues, if any, maturing or called for Department; and his action in these respects shall be redemption on the said installment, dates, respectively. final. Allotments will be made before June 3, 1919, Treasury certificates will be received at their face value. and the basis of allotment will be publicly announced. The accrued interest on Treasury certificates (which, Notices of allotment will be mailed promptly thereafter in the case of payment of the first installment, or payment by the several Federal Reserve Banks. in full, when and as permitted hereunder, on or before May 20,1919, will be computed to May 20, 1919, or earlier Terms of payment— Payment for notes allotted, in maturity) will be paid to the subscriber. Treasury ceraddition to the 10 per cent paid on application, must be tificates thus presented must not be of a larger face value made so as to reach a Federal Reserve Bank or a branch than the amount then to be paid on the subscription, thereof as follows: Ten per cent on July 15, 20 per cent on and subscribers should obtain certificates in appropriate August 12, 20 per cent on September 9, 20 per cent on denominations in advance. Treasury certificates of any October 7, and 20 per cent on November 11, 1919, with series acceptable in payment of taxes will not be accepted accrued interest from May 20, 1919, on the five deferred in payment on subscriptions for notes. installments. Receipt of installment payments made to official agencies prior to payment in full will be acknowl- How to make payments.—It is strongly recommended edged by the several Federal Reserve Banks. Payments that subscribers avail themselves of the assistance of their must be made when and as herein provided under penalty own banks and trust companies, in which case they will, of forfeiture of any and all installments previously paid, of course, make payments through such institutions. In and of all right and interest in the notes allotted. Pay- cases where they do not do so, subscribers should make ment for notes allotted may be sooner completed, but only payment either to the Treasury Department in Washingso as to reach a Federal Reserve Bank or a branch thereof ton or to a Federal Reserve Bank, or branch thereof, in on May 20, 1919, or, with accrued interest from May 20, cash, or by bank draft, certified check, post-office money 1919 (the previous installment or installments having been order, or express company money order, made payable to duly paid), on July 15, August 12, September 9, or October the order of the Secretary of the Treasury, if the applica- 7, 1919. Payment for notes allotted to subscribers for tion is filed with the Treasury Department in Washington aggregate amounts of notes in excess of $10,000 can not (thus: "The Secretary of the Treasury, Victory liberty be completed on May 20, but may be completed, with Loan Account"), or, if the application is filed elsewhere, accrued interest from May 20,1919, after public announce- made payable to the order of the Federal Reserve Bank ment of the basis of allotment, on a date or dates, not of the district in which the application is filed (thus: earlier than June 3, nor later than June 17, 1919, named "Federal Reserve Bank of , Victory Liberty Loan in the announcement of allotments, or on any later install- Account"). Incorporated banks and trust companies in ment date. Upon applications for aggregate amounts the United States, duly qualified as special depositaries of notes in excess of §10,000, no payment other than the 10 of public moneys under Department Circular No. 92 as per cent required will be received with the application, amended and supplemented April 17, 1919, may, up to and in case of partial allotments upon such applications the amount for which such depositaries respectively shall the excess of the 10 per cent payment will be applied be qualified in excess of then existing deposits, when so upon the next installment or installments and no accrued notified by Federal Reserve Banks, make payment by interest will be charged on that part of any installment credit of amounts payable hereunder on or before May 20, covered by the amount so applied; and in case of the allot- and on the date or dates not earlier than June 3 nor later ment of less than 10 per cent of the amount applied for. than June 17, 1919, named in the announcement of allotthe balance of the 10 per cent payment made with the ments, and, if and to the extent from time to time authorapplication will be returned as promptly as possible ized by the Secretary of the Treasury, on later installment dates. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

446 FEDERAL RESERVE BULLETIN. MAY i, Delivery.—Notes will be delivered promptly after due City, which shows a reduction) exceed by 305 million dolcompletion of payment therefor. Notes of the 4} per cent lars the greatest resources ever reported. series may be delivered prior to May 20, 1919. to subscrib- The official records show that since March 5, 1917, there ers for aggregate amounts of notes not in excess of $10,000, have been placed through the national banks of the country who make payment in full in cash upon application on or about 51 per cent, or a clear majority, of the seventeen before May 10, 1919. In making deliveries before May billion dollars of Liberty bonds sold in this period. These 20, 1919, the right is reserved to deliver notes of the banks are now in an exceptionally strong position to aid largest denomination or denominations, not exceeding in marketing the Victory loan and to extend to their $1,000, contained in the respective amounts of notes sub- customers any help that may be needed to carry tlieir scribed for. A limited amount of notes of the 4J per purchases. cent series will be made available to incorporated banks These giant operations have not only occasioned noand trust companies within the United States prior to drain or depletion in the assets of the national banks, but May 10, 1919, for delivery to subscribers for aggregate during this same period their resources have actually amounts of notes not in excess of $10,000, but only upon increased 4,038 million dollars, and their deposits liave the terms and conditions set out in the official application grown 2,342 million dollars. blank (Form L and C 182) provided for that purpose. Exceedingly favorable and striking features of the Notes will be delivered by the several Federal Reserve present situation are the healthy distribution and dissem- Banks as fiscal agents of the United States as far as prac- ination of resources, deposits, and loans of the banks, and ticable in accordance with written instructions given by the absence of the congestion and concentration in a the subscribers, and, within the continental United States, few cities of capital and credit which were baneful, danat the expense of the United States. gerous influences in our banking and" currency system Interest.—As the notes are dated May 20, 1919, no ac- before the passage of the Federal Reserve Act. crued interest will be due on subscriptions for aggregate Deposits March 4,1919, aggregated $15,299,807,000—an amounts of notes not in excess of $10,000, paid for in full increase of 861 million dollars as compared with March 4. on or before that date, when and as permitted herounder. 1918; and an increase of 2,342 million dollars over March 5. No rebate of interest will be allowed either on account of 1917. The increase in deposits as compared with Decemfull payment in advance of May 20, 1919, or on account ber 31, 1918, in the whole country, outside of New York of the first installment of 10 per cent. Upon completion City, was $287,293,000. The reduction in New York City of payment when and as permitted hereunder, on the was 410 million dollars. The increase in deposits of the date or dates, not earlier than June 3 nor later than June national banks since December 31, 1918, has been mainly 17, 1919, named in the announcement of allotments, or in the country districts. upon completion of payment on July 15, August 12, Sep- The 10 States whose country national banks have shown tember 9, October 7, or November 11,1919, the subscriber the largest increase in deposits since December 31 are: will be required to pay accrued interest from May 20, Iowa, 45 million; Pennsylvania, 37 million; Illinois, 34 1919, on the deferred installment or installments at the million; Kentucky, 25 million; Ohio, 19 million; Nebraska, respective rate or rates borne by the notes to be delivered. 18 million; Massachusetts, 14 million; Wisconsin and Further details.—The Secretary of the Treasury reserves Michigan, 13 million each; and New York, 12 million the right to make special arrangements for subscriptions dollars. The only State whose country national banks for the notes at not less than par from persons in the mili- show a decline in deposits of as much as 3J million dollars tary or naval forces of the United States. was Georgia, where the reduction was 6 million. Further details may be announced by the Secretary of The central reserve and other reserve cities showing the the Treasury from time to time, information as to which, largest increases in deposits between December 31, 1918, as well as forms for application, may be obtained from the and March 4, 1919, were: Chicago, 32 million dollars; Treasury Department or through any Federal Reserve Omaha, 19 million; Louisville, 17 million; Milwaukee 12 Bank. million; Des Moines, 11 million; Sioux City, 8 million; Fort Worth, Cedar Rapids, and Albany, 7 millions each. CARTER GLASS, Loans and discounts March 4, 1919, amounted to 9.691 Secretary of the Treasury. million dollars—an increase of 552 million dollars as compared with March 4, 1918; and an increase of 978 million Condition of National Banks. dollars as compared with March 5,1917, but a reduction of 227 million dollars as compared with December 31, 1913, The following statement was issued by the The percentage of loans and discounts to deposits on office of the Comptroller of the Currency on March 4, 1919, was 63.35 per cent; March 4, 1918, 63.30 April 14: per cent; March 5, 1917, 67.25 per cent. Bills payable and rediscounts on March 4, 1919,. The returns just completed show that the resources of amounted to 1,451 million dollars—an increase of 794 the national banks March 4, 1919, amounted to 20,017 million dollars as compared with March 4, 1918; and of million dollars. These figures (except as to ~New York 1,381 million dollars as compared with March 5. 1917; due Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MAT 1,1919. FEDERAL RBSEEVE BULLETIN. 447 principally to money borrowed temporarily on United Practice of Handling Bills of Exchange in Foreign States certificates of indebtedness and Liberty bonds. Countries.1 Of the 1,451 million dollars of bills payable and rediscounts shown March 4, 1919, 1,014 million was represented by AUSTRALIA. bills payable with the Federal Reserve Banks, and 48 [Commercial Attache* Philip B. Kennedy, Melbourne.] million dollars by bills payable with other than Federal Exports to the United States are financed either by the Reserve Banks, leaving a balance of 389 million dollars of establishment of credits by the United States buyers rediscounts, including those with Federal Reserve Banks. under which drafts are drawn or by direct telegraphic United States bonds, including Liberty bonds and transfer remittances at date of shipment. But methods United States certificates of indebtedness held March 4, and details differ somewhat according to the product 1919, amounted to 3,681 million dollars. This is an inexported. crease of 1,560 million dollars over March 4,1918, and an in- The Imperial Government deposits credit in London t<s crease of 2,967 million dollars over March 5,1917. Of the the order of the Australian Government. Local sellers of (jcvernment bonds and certificates of indebtedness held wool are paid f. o. b. Australia, it is therefore necessary March 4,1919, approximately 700 million dollars are bonds to secure payment in Australia in return for London credit. of the old issues which are pledged as a basis for circula- The Australian Associated Banks have divided this wool tion. About one billion represents bonds of the first four financing between themselves at an agreed ratio. Liberty loans still held by the national banks, the re- Of Australian wool prior to the war about 15 per cent was mainder of the United States Government obligations consigned to London for sale. Banks usually advanced owned being the short term certificates of indebtedness. a reasonable percentage of the value of the wool to the Other bonds, securities, etc., held March 4, 1919, seller and negotiated a 60-day draft on London for the amounted to 1,701 million dollars—a reduction as comapproximate amount. The wool was put in the hands of pared with March 4. 1918, of 114 million dollars; and a a London broker who sold it before the draft came due. shrinkage as compared with March 5, 1917, of 69 million The grower received the excess due him through his bank. dollars; but an increase over December 31, 1918 of 18 mil- The 85 per cent of Australian wool which has been sold lion dollars. at local sales must be paid for by the buyers in cash. The Capital, surplus, and undivided profits of national banks universal custom is for wool buyers to pay through the on March 4, 1919, amounted to 2,330 million dollars, an medium of a letter of credit issued to their order upon increase over March 4, 1918, of 92 million dollars; and an local banks. Usually the banks are instructed in the increase over March 5, 1917, of 159 million dollars. letter of credit to honor drafts upon presentation of bills The circulation of national banks March 4, 1919, was of lading and other shipping documents covering the pur- 674 million dollars—an increase of about 13 million dollars chase in question. In some instances instructions are over March 5, 1917, but a reduction since December 31, given to permit of payment prior to shipment, but this 1918, of 3 million dollars. must be definitely stated in the letter of credit, otherwise The cash on hand and due from Federal Reserve Banks the banks will not take the risk. March 4,1919, was 1,858 million dollars—an increase over March 4,1918, of 165 million dollars, and an increase over LETTERS OP CREDIT ISSUED ON SEVERAL BANKS. March 5, 1917, of 214 millions dollars. The reason why letters of credit issued to wool buyers The lawful reserve held by the national banks March 4, should be drawn upon five or six Australian banks is not 1919, was 1,151 million dollars, or 77 million in excess of to give the buyer an opportunity to "shop around" for the amount required. The excess reserve reported Decemthe lowest rates, since there is only one rate on wool bills ber 31, 1918, was 69 million dollars. The percentage of which is agreed to by the associated banks, and changed reserve held by country banks March 4, 1919, was 7.53 from time to time according to the exchange situation. per cent. The highest percentages among the States as The letter of credit should be made out to five or six reported were: New Mexico, 8.47 per cent; Alabama, 8.25 Australian banks because any given bank may stop buying per cent; Louisiana, 8.22 per cent. The States reporting wool bills if it has too much money in London to balance . the lowest percentages of reserve were: Wyoming, 6.95 with drafts for imported merchandise drawn upon it. per cent; Iowa, 7; Illinois, 7.11;Connecticut, 7.19 per cent. Banks, on the other hand, which may need money in The percentages of reserve carried in the three central London to meet obligations do not have to bid for it in reserve cities of New York, Chicago, and St. Louis, the open market; it comes to them more or less automatirespectively, were 14.49 per cent; 13.16 per cent; 13.42 cally. When a letter of credit is made out to five or six per cent. The other reserve cities averaged 10.42 per banks the wool buyer may always be certain of finding a cent, and those showing the highest percentages were: bank which will buy wool bills at the set rate. Des Moines, 13.20; Spokane, 12.28; Brooklyn, 11.80; San British wool bills are normally drawn for 60 days, Amer- Antonio, 11.66. The reserve cities showing the lowest ican bills frequently for 90 days, due to the fact that our reserve were: El Paso, 4.90 per cent; Kansas City, 6.99; Albany, 7,63 per cent, and Omaha 8.39 per cent. 1 From Commerce Reports, Mar. 23, Mar. 25, and Apr. l, 1919. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

448 FEDERAL RESERVE BULLETIN. financing has been handled through London, additional days. Wool bills on the United States are often drawn time being required for the round mail between London for a longer period, because of the additional time taken and Boston or New York. for the round mail from London. This may be feasible In normal times the banks compete very keenly for this for other commodities. '"'open" business, as the wool bills are called. They do not cut rates, but they expect their officials to pull the COMPARISON BETWEEN DOLLAR DRAFTS AND STERLING business on the basis oi! personality and service. This DRAFTS. shows us the bunker in the role of business getter. From an exchange point of view there is no difference between dollar drafts and sterling drafts, excepting the FINANCING OF MEAT EXPORTS. conversion rate. Dollar exchange is based upon the There are about 12 export meat works in Australia. London-New York sight rate. There is no real dollar They pay cash to the farmers for cattle on delivery, either exchange. Where banks issue payment in dollars they using their own capital or borrowing from the banks. are speculating on the New York-London sight rate? Meat is normally sold either c. i. f. e. or f. o. b. Australian since they carry slight funds in New Y«rk. They get a port, or by consignment to be sold in London on delivery. better rate of interest in London (New York only 2 per Business other than London, of which there is consider- cent on open accounts) and have more use for their money. able, especially to the East, is c. i. f. e. or f. o. b. Austra- The Australian banks all have branches in London. For lian port. Meat is usually invoiced to the agent for the the present, dollar payments are to be recommended only exporter or to the direct buyer, and the exporter draws on for convenience. It is only a question as to whether the him with shipping documents attached. Freight is pay- customer or the Australian bank will speculate on the able in Australia in exchange for bills of lading. Insur- New York-London sight rate. When this rate is fluctuance is usually booked in London under open cover, the ating the banks will be sure to protect themselves on their premium being paid by agents in London on certain speci- quotations. Most local exporter's bills are drawn in sterfied forms of declaration for insurance by exporter, he ling at sight and 30 days. arranging his own finance with the agent accordingly. The exporter usually books freight ahead to meet his HOW CREDIT AND DRAWING ARE ARRANGED. requirements. The exporter places meat in the ship slings at his own expense. In arranging a credit and drawing the bank in New York advises the bank in London that it desires a credit established. The bank in London passes it out to its EXCHANGE ON WHEAT EXPORTS HANDLED BY ASSOCIATED Australian branch or agent, by whom it is advised to the BANKS. beneficiary. The common usance of such bills is 60 days. The Associated Australian Banks divide the exchange They are negotiated almost invariably through the bank on wheat exports by arrangement. An enormous export with whom the credit is established, never through surplus of wheat has accumulated in Australia. brokers. Before the war wheat exports were handled independ- There is no open exchange market in Australia. The ently in Sydney, Melbourne, Adelaide, and Perth. In associated banks fix rates which all are to charge on each city three to five companies controlled the bulk of London. Sometimes a local bank will charge a customer the business. The three great companies which handled more than this rate and occasionally less. The rates most of the wheat export throughout Australia were John require a little watching, but is it bad form to shop around. Darling & Co., James Bell <fc Co., and Dreyfuss. Their Rates outside of London being based upon London, there is virtual monopoly was based upon an ability to book shipvirtually little fluctuation in other rates charged by various ping space ahead. Banks advance money to these firms banks. Exchange rates are locally quoted on the first day to enable them to carry wheat, on condition that exchange in each week in the newspapers. Bills are customarily be handled through them. Banks not in position to make domiciled in Perth, Adelaide, Melbourne, Sydney, advances would be almost shut out of the exchange busi- Brisbane, and Hobart. ness. Bills are drawn in about the same fashion as for The banks rarely see New York rates of discount and meat. exchange. They know the conversion rate dollars into sterling every week. Ninety per cent of reimbursements CREDIT IS OPENED BY THE AMERICAN IMPORTER. being in London, they are not pecuniarily interested in The local seller draws usually under a credit opened by the daily fluctuations elsewhere. the American importer with ordinary trading banks. The Bank of New South Wales receives a cable once a (For the sake of caution it may be well to make credits week as to the New York-London sight rate and gives out payable upon several banks for other commodities than this rate to other banks. There is only one basis for wool, although wool is the big business and the one in exchange rates, which is the New York - London which this problem especially arises.) Such a credit sight. Australian banks do not bother with any further generally provides that drafts are drawn at sight, 30, or 60 refinements. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MAT 1, 19.19 FEDERAL RESERVE BULLETIN. 449 EXCHANGE TABLES NOT PUBLISHED—DISCRIMINATION send forward a large proportion at the bills for Australian FAVORS LONDON. import trade, having paid cash in New York, expect to receive the face amount. Their 2-J- to 5 per cent commission Exchange tables, dollars into local currency, are not is absolute!y net. American banks which send '' forward'' published in Australia, and local banks neither get quotabills direct to Australia originating with their customers tions of Mew York discount rates nor quote "forward" should be sure of the terms of the transaction. American rates of New York discount. importers can specify that the rail amount of the quoted The usual margin of profit between selling and buying price be paid, all charges for exchange to be met by the quotations is 17s. 6d. (84.23). During the war the rates importer.. This will enable the quotation of bedrock were considerably higher. prices which the importer wishes to secure. A large The only discrimination is in favor of bills drawn on number of bills have been coming forward from banks all London. It is all a matter of currency. Banks explain over the United States. The Bank of New South Wales this by saying that they know sterling values, but conallowed me to look through one of their mail receipts of version rates into other currency are a day to day factor. American bills. I was surprised at the variety of the origi- For instance, the bank in buying a bill on New York to-day nating banks representing all parts of the United States. knows that the conversion rate is 4.78, but has to risk that Even banks in fairly small cities were represented. rate going against it while the bill is in transit. Australian banks make deductions for stamp charges, Since there is no open exchange market in Australia the but not for postage on. letters. Unless the words ;' Payable local banks are content to be a tail to the London kite. with all charges'7 appear the value of the stamps is gen- They let London attend to international exchange proberally deducted from the amount remitted. Charge is lems. When we consider that local banks have offices also made for stamps on checks remitted to the exporter in London and that most of their business has been done in payment of collections. with London this appears natural. COMMISSIONS AND STAMP CHARGES IN THE IMPORT CUSTOMS REGARDING PROTESTED BILLS. TRADE. In case of protest the amount of the charge is £1 Is. Commission for collecting clean and documentary items Noting fee is 7s. 6d. (Noting fee in New South Wales is on Melbourne is the same, one-fourth per cent. This is 10s. 6d.) In the event of the item being paid after prousually spoken of as 5s. per cent (5s. in £100). To this test, the charges are collected from the drawee. must be added the exchange on London for a sterling draft. Banks do not protest unless specially instructed to do so. The total cost of collecting clean items on various other They note the bill and this may at any time be extended cities is one-fourth per cent commission plus exchange into a protest. Currency bills noted for nonacceptances for draft and duty stamps. are presented at the notarial due date, and if dishonored, Australian banks agree upon fixed rates of exchange noted for nonpayment. Noting must be done within between various internal cities for local business. Over- 48 hours after dishonor to reserve recourse. sea drafts, however, are negotiated at identical rates for Collection and banking charges on bills drawn upon capital seaport cities. merchants are added to the face amount of the bill and It is contrary to custom for banks to undertake to obtain paid at due day, unless the terms are c. f. i. e. When acceptance if bill is not left for collection. exchange is not specified in the terms, usage puts it upon The bill stamp charges for clean and documentary items the importer. drawn on our country are as follows: If drawn on Victoria, It is not customary for the importer to assume any other demand items, Id.; currency, ad valorem, for each £25 supplementary charges. Occasionally a draft is drawn up to £100, 6d. If over £100, for each £50 or portion bearing interest from date to receipt of proceeds by drawer. thereof, Is. If drawn on Queensland, New Zealand, or Local banks guarantee payment of drafts accepted by Fiji, Is. on every £25 or fraction thereof. If drawn on approved firms only under their letters of credit; or. in Western Australia, 6d. for every £25 or part thereof, and special cases, in which instructions to deliver documents Is. for every £50 or part thereof on amounts over £100. on payment under a currency draft are ignored. If drawn on New South Wales, South Australia, Tasmania, 6d. on every £25 or part thereof, regardless of amount. BANKS ACCEPT CONSIGNMENTS, AND ALSO PARCELS FOR DELIVERY. DRAWEE USUALLY PAYS STAMP DUTIES. When supporting drafts are in the hands of a bank, or It is the usual but not invariable practice for the drawee shipment is made under its letter of credit, it will accept to pay these charges. To be certain, however, that the consignment of goods. But before making such consigndrawee pays for stamps the clause, "Payable with all ments the exporter will do well to inquire as to the repute charges," should be included. Terms before the war of the banking firm in question. Banks will also accept were often c. i. f. e. (cost, insurance, freight, and exchange). parcels to be delivered to consignees against payment or At present very little, if any, business is being done on acceptance of draft. No charge is made for this this basis. American export commission houses, which service. 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450 FEDERAL RESERVE BULLETIN. MAY 1, 1919. CUSTOMHOUSE PRACTICES—STORAGE OF GOODS— turnee. Goods to be returned do not have to be cleared INSURANCE RATES. customhouse, and there is no duty. If duty has already been paid full refund is made, except in the case of a few The customhouse allows seven days after final discharge kinds of shipments, such as tobacco. from the boat in which to make entry. But in Sydney the time limit is 48 hours. No fine, however, is imposed for HOW DRAFTS SHOULD BE PHRASED. failure to make entry within the specified time limit. Goods not entered in this period are placed in the King's The customary phrase to be included in drafts drawn on warehouse, the charges for storage being 4d. ($0.08) per ton, Australia in United States dollars in order to enable rewith 4s. (10.97) per ton added for delivery. The con- mittance of the face amount of such bills without any signee eventually pays these charges. deduction whatever is: "Payable with exchange, com- There should be an understanding with the importer mission, stamps, and all costs for a sight draft on New York as to whether goods should be consigned to him or to a in dollars." The precise wording required should be recustoms agent. Many local firms are prepared to do their quested from individual banks, although the above would own clearing and have objected seriously to American firms probably meet any case, the consignee probably being consigning to customs agents or freight forwarders. liable for any fluctuations and not the bank." Banks arrange for storage of goods in cases of necessity, The phrase to be included in drafts drawn in United the charge being the same as that at the King's ware- States dollars in order to enable remittance of the face house—drayage, 3s. 5d. (10.34) per ton; agency clearance, amount of such bills plus collection charges is the same 3s-. 6d. (§0.85); sighting, if necessary, Is. 6d. ($0.36). as above with the addition, "plus agent's commission Banks will arrange for insurance on goods in warehouse. per cent." A docket of charges should be inclosed. If The usual premium for good risks is 7s. to 8s. ($1.86) for draft is to include interest in addition to the above-named £100, with a minimum premium payment of 4s. 6d. charges, add: " Interest at per cent from date of draft ($1.09). Consignee eventually pays for storage and insur- to approximate date of arrival of proceeds in New York." ance. Acceptors retiring drafts before maturity are allowed DOCUMENTS NEEDED IN FOREIGN SHIPMENTS. interest at the rate of 1£ per cent per annum. This is customary, but not provided by law. There is no charge If goods arrive in advance of the related documents a connected with dishonored items beyond the protest fee bank guaranty may be used in lieu of the missing bill of already mentioned, excepting the duty stamp. lading, but the Customs Department requires an invoice. In New South Wales the estimated amount of duty must CHINA. also be deposited before goods are cleared. [Commercial Attach^ Julean Arnold, Peking.] No other documents than bills of lading and invoices are needed in connection with foreign shipments, but the Exports to the United States are sometimes financed invoice should state the price for home consumption in the under the form of a documentary credit, which some banks country of origin at the date of shipment. For conven- do not regard as a credit at all. As a rule, this is opened ience it is well also to inclose a packing sheet. at the request of an importer, who specifies the bank At most ports of Australia it is customary to permit the through which the credit is to arrive, dependent upon the drawee to examine the goods, but the ports of New South particular bank where the exchange is booked to cover Wales form an exception. that specific transaction. Confirmed bankers' credits, or If bills of lading are made out either "to order" or to irrevocable credits, are also used in China. These call the order of the consignee it is possible for the latter to for no comment, as they are well known in the United obtain possession of the goods without producing the bills States. "Packing" credit, too, is occasionally utilized. of lading. But in either instance a guaranty would have This is an arrangement by which the importer authorizes to be made which would fully protect the holder of the bill the local banker to pay the exporter the value of the merof lading. chandise as soon as the goods are packed and ready for Bill of lading can not be made out so as to give the shipment. Such cargo is usually hypothecated to the consignor full control of the merchandise, because the ship bank until the goods are actually shipped, when, in will not deliver goods under such bills of lading. The exchange for the shipping documents, the bank deducts safest way is to indorse the bill of lading over to the bank the amount advanced and gives the exporter the balance which is to handle the draft. in his favor. The usance most common is 90 days, but shipments are SHIPPING AGENTS WILL SELL OR RETURN GOODS. made also on 30, 60, and 120 days by mutual arrangement Banks do not undertake sale or return of goods to con- between buyer and seller. Business at sight draft is also signor, except that when such requests are made they are a common occurrence, and with strong financial houses placed in the hands of a shipping agent, whose expenses this usance is preferred to all others on account of the the bank pays, recouping itself by drawing on the re- greater facility in exchange. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MAY I, 1019. FEDERAL RESERVE BULLETIN". 451 PREVAILING RULES GOVERNING BILLS OF EXCHANGE. All the big banks of China obtain regular quotations of discount rates from New York banks. "Forward" rates The question as to whether it is more advantageous to must be quoted, as practically always the settlement of draw dollar bills on New York or sterling bills through bills is on a "forward" basis. New York, payable London, depends entirely on the The margin of profit calculated in the purchase of firstcross rate existing between New York and London. The class commercial bills is based on New York or other Amermajority of local exporter's bills are drawn in gold dollars. ican discount rates, and is usually about l/8d. higher than The rules governing bills of exchange are based on the these rates. laws of the countries concerned and the custom, of each settlement—French, British, American, etc.—in Shang- COLLECTION PRACTICES IN IMPORTANT TRADE—PROTESThai, For example, a bill drawn in New York on China FEES. would be stamped in accordance with American law, and the American rules regarding protest, presentation, etc., In the matter of import procedure the general practice would apply, while British laws would be applicable to in Shanghai is to charge about one-fourth per cent for colbills drawn in London on Shanghai. lections on both clean and documentary items. This is the total cost for clean items at treaty ports. The total CREDIT OPENED BY THE BUYER. cost at such ports for documentary items does not exceed The credit arrangement is made by the buyer at home. one-half per cent. If the bill is not left for collection the In opening a documentary credit the importer signs a commission for obtaining acceptance is one-eighth per form in which he gives the name and address of the ex- cent. There are no stamp charges. porter in whose favor the credit is to be opened and states Because of extra-torritoriality in China the amount of whether one or a series of drafts is to be drawn. He also charges in case of protest depends upon the consulate of gives particulars of the merchandise to be shipped and the nationality concerned, but is cheaper than ordinarj? agrees to effect the marine insurance. In consideration solicitors' or lawyers' fees. If the item is paid after proof the banker's allowing the exporter to draw on him up test, charges are usually collected from the drawee. Colto a specified amount, the importer engages to accept any lection charges are usually paid by drawers on free bills, pay credit. Each bill drawn under such an arrangement unless other arrangement is made. The importer bear3 is accompanied by a full set of shipping documents— these charges if goods come on credit opened by him. invoice, bills of lading, insurance policy, etc.—all duly Other supplementary charges are subject to special arhypothecated to the bank as security for the due payment rangement. of the bills. LOCAL BANKS GUARANTEE PAYMENTS. Most of the bills in connection with the Eastern trade are on an interest basis, 6 or 7 per cent being charged from If provided for in letter of credit, local banks will guarthe date of the bill to the approximate due date of proceeds antee the payment of drafts accepted by approved firms, in the hands of the bank making payment. charging about one-eighth per cent per month. They will Bills are negotiated direct with the bank, although the not generally accept the consignment of goods unless exchange is practically always settled through brokers. specially arranged for and at one-fourth per cent plus charges. For a similar charge parcels will be received to DAILY QUOTATIONS RECEIVED FROM NEW YORK—SETTLE- be delivered to consignee against payment or acceptance MENT ON "FORWARD" BASIS. of draft. Exchange rates are quoted on the basis of telegraphic CUSTOMHOUSE PROCEDURE—PINES—INSURANCE IN transfer, and are published daily by the Hongkong and WAREHOUSE. Shanghai banks, which give exchange rates on London, France, New York, Japan, and India. Daily telegraphic Fifteen days from date of departure of steamer are reports are received from New York. allowed for making entry at the customhouse. For each Where bills are domiciled depends entirely on the 5-day period over this limit a fine of 20 haikwan taels is customer's domicile. The majority of credits are domi- imposed on the steamship company and paid eventually ciled in New York or Boston; but others drawn on the by the consignee. The Government does not store goods, United States are domiciled in Chicago, San Francisco, but the banks will arrange for storage in cases of necessity, Philadelphia, and smaller cities. the rates for this service and for drayage depending on the Several books of exchange tables are published by Kel- character of the goods. Insurance while in warehouse ley & Walsh, Shanghai, which convert sterling, gold dol- may be arranged at a premium equal to 0.4 per cent of the lars, and yen into local currency. The Commercial Press value of the goods. If delay in taking delivery is due to (Ltd.) also publishes the Far Eastern Exchange Tables, the consignee, all such charges as these are payable by compiled by F. X. Sequeira. him. 115831—19 7 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

452 FEDEBAL RESERVE BULLETIN. MAY 1, 1919. USUAL DOCUMENTS REQUIRED—BANKS ATTEND TO SALE London. The market for bills drawn in dollars on New York is generally on a parity with that for other bills. OR RETURN OF GOODS. Local exporters' bills are drawn in sterling and gold In the event of the arrival of goods in advance of the dollars, the usance of such bills being from demand 30 to related documents they may be obtained without any 90 days. Practically all of the gold-dollar bills are negoadditional charges by giving a letter of guarantee to the tiated direct, and the sterling bills through brokers. shipping company. Exchange rates are quoted locally as the number of gold Invoice, bill of lading, and shipping papers are the dollars equal to 100 Straits dollars or number of pence usual documents required by Jaw. Whether the consignee equal to 1 Straits dollar. Bills are customarily domiciled can obtain goods without producing bills of lading which in New York or London. have been made out" to order" is a matter of arrangement. New York rates of discount and exchange are not If goods are made out to the order of the consignee, he may publicly quoted locally. However, private quotations get them, provided the shipping company has confidence are received by the banks for their own information. in his standing. To give the exporter absolute control of The banks keep themselves posted by cable on daily goods, the bills of lading should be made out to his order fluctuations of exchange rates in the principal financial and indorsed by the bmik here. It is not customary to centers of the world. Quotations on New York are always permit examination of goods before delivery without current. Exchange tables (dollars into local currency) specific instructions from the exporter. are available in the Straits Settlements, but are published Banks will, at request, attend to the sale of goods or will by Noronha & Co., Hongkong. All local banks get return goods. For the latter, application must be made to regular quotations of discount rates from New York, but the customhouse for reexport of goods, and they must be "forward" rates are not quoted. cleared; but, if they are foreign goods, no duty need be paid. Duty already paid will be refunded, provided the COMMISSION AND STAMP CHARGES PAID BY DRAWEE. goods are in the original shipping package with original In the import trade the commission for collecting clean marks and numbers. (i. e., without documents) items on Singapore is one-eighth per cent, but if there is exchange involved the collection PHRASEOLOGY.OF DRAFTS. is usually made free of commission. Some banks charge The inclusion in drafts of the phrase, " United States commissions for collecting documentary items on Singagold $—•—, payable at the collecting bank selling ratepore in some instances. The total cost of collecting clean for T/T or s/d on New York," will enable remittance of and documentary items in the Federated Malay States the full face amount of the bills. For remittance of the varies from one-eighth to one-quarter per cent, while the full amount plus collection charges, add to the above usual commission for obtaining acceptance, if bill is not phrase, "plus collecting charges." If it is also desired to to be left with bank for collection, is one-eighth per cent. enable remittance of above charges plus interest, specify, The bill stamp charges for clean and documentary items "and interest at per cent from (date) till approxi- drawn on the Straits Settlements are 5 cents per $100. No mate date of arrival in New York." deductions for stamp charges are ever made by a local In what currency drafts shall be made for the payment bank from a remittance to an American bank in payment of bills drawn in local currency is a matter of arrangement. of such collections, as the drawee usually meets the There is no legai^provision as to the rate of exchange charges. Neither is any deduction made for stamps on that shall be" applied .on bills drawn in foreign currency. checks remitted to an American bank. In the event of an 4 This depends on the bank selling rate. item being paid after protest, the charges are collected Acceptors of drafts retired beiore maturity are allowed from the drawee, as the bank is generally content with A 2 per cent interest, but this rate is not fixed by law. recovering the principal. Local merchants sometimes re- In addition to the charge mentioned above on protested fuse to pay collection charges and banking charges on bills items, the banks charge a commission of one-eighth per drawn upon them. These charges are generally adjusted cent for the return of clean, and one-fourth per cent for between the importer and the seller. It is not customary the return of documentary items wiiich|have been dis- for the importer in the Straits Settlements to make or ashonored. Such charges are generaliyJImade against sume any other supplementary payments of charges. account. BANKS ACCEPT GOODS FOR DELIVERY. STRAITS SETTLEMENTS. Local banks do not guarantee the payment of drafts ac- [Consul Harry Campbell, Singapore.] cepted by approved firms. Neither do the banks accept Exports from the Straits Settlements to the United the consignment of goods, but parcels may be sent to a States are mainly financed by telegraphic transfer on bank for delivery to consignee against payment or accept- London. The local seller, as a rule, draws under a credit ance of draft. The charges are one-eighth per cent, but opened by the American importer, which credit is usually if exchange is involved the transaction is generally efopened in Mew York, andfdrafts drawn on New York or fected free of charge. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1, 1819 FEDEKAL RESERVE BULLETIN. 453 STORAGE OP GOODS—WAREHOUSE INSURANCE RATES. bill of lading would be handed to a local shipping agent for his attention. Before these goods could be shipped, Singapore being a free port, there is no customhouse. it would be necessary at the present time to secure an and hence no regulations concerning the time allowed for export permit from the Registrar of Imports and Exports. entry of goods. Banks do not customarily arrange for Singapore is a free port with the exception of slight duties storage of goods, but this might be done in case of neceson petroleum, cigars and cigarettes, opium and liquors. sity. Should such goods be returned to the United States, duties Banks will arrange for insiu'ance in warehouse. The would be refunded. premium in any specified warehouse of brick and/or iron and/or wood is 50 cents per §100 per annum; in any speci- PHRASES TO BE USED IN DRAFTS. fied warehouse of brick and/or iron with tile roof, 40 cents American banks, when drawing on the Straits Settleper $100 per annum. Another policy, known as the floatments in United States dollars or any other foreign curing policy, may be secured on goods in any Singapore rency, should include the phrase, "With all charges and harbor warehouse at Tanjong Pagar and/or Keppel Harbor, stamp duty included.'' The use of this phrase will enable for 60 cents per $100 per annum; or on goods in any Singthe local bank to remit the face value of such bills without apore harbor warehouse at Tanjong Pagar and/or Keppel any deduction whatever. Should American banks wish Harbor and/or P. & O. Co.'s premises, for 75 cents per $100 the face amount of such bills, plus their collection charges, per annum. This last-named policy is perhaps of greater remitted, they should use the phrase, "With all charges importance than the others, as it covers merchandise in and stamp duties included, plus our collection charges of any warehouse where the goods may happen to be stored. In case of inflammable material special rates are fixed $ .'' In case it is desired that the remittance include according to the nature of the goods. interest, the following phrase should be used: "With all charges and stamp duties included, plus our collection Rates on fire insurance policies taken out for brief pericharge of $ with interest at per cent per annum ods onfy are one-tenth the annual rate for 10 days, one-fifth from date of bill to approximate due date in New York." annual rate for 30 days, one-third annual rate for 60 days, The Singapore banks will remit proceeds of bills in United one-half annual rate for 90 days, two-thirds annual rate for States dollars without loss of exchange, as the fluctuation 6 months, and four-fifths the annual rate for 9 months. of exchange falls on the drawee. For periods exceeding 9 months the annual rate is charged. The annual rates on which these short-term rates are based BILLS IN FOREIGN CURRENCY BEAR INTEREST—CHARGE ON are those mentioned above. RETURNED ITEMS. CONSIGNEE PAYS CHARGES—EXAMINATION OP GOODS If a bill is drawn on this colony in other than the local PERMITTED. currency, it is not customary for the drawee to pay such bill by a draft purchased from another bank in the Straits It is customary for the consignee eventually to pay Settlements. There is no provision by law or trade storage and insurance charges. Goods rarely arrive in custom as to the rate of exchange that shall be applied on Singapore before the relating documents. However, bills where drafts are drawn in foreign currency. Most should this occur, storage and insurance are the usual exof the bills that are drawn in foreign currency bear the penses connected therewith, although delivery can usually interest clause. No rebate is allowed acceptors for retirbe secured by making formal declaration that documents ing drafts before maturity. Any small expenses, such as have not been received but will be delivered upon arrival. local transportation, etc., would be properly chargeable Consular invoices are not necessary for shipments to the in connection with the return to an American bank on Straits Settlements. It is customary to permit examinadishonored items. The charge on such items would be tion of goods by drawee without an inquiry to the United one-eighth to one-fourth per cent. The local branch States by cable or letter. Should bills of lading be made would probably request the head or branch office in New out "to order," it is possible for the consignee to obtain York to collect such charges. possession of the goods without producing the bills of lading, provided possession is gained under a bank guar- ALGERIA. anty. An American concern can retain absolute control [Consul A. C. Frost, Algiers.] of the merchandise by holding a complete set of bills of Exports to the United States diminished rapidly during lading. the war, owing to lack of tonnage and to the fact that Algerian products were required more and more by France. BANKS DO NOT ATTEND TO SALE OR RETURN OF GOODS. Generally, the American importer is obliged to pay in If the clients of an American bank wish to sell goods pounds on London or in francs on Paris before shipment shipped to the Straits Settlements, they should get in of the goods. touch with a selling agent, as a local bank will not attend The local seller would ordinarily draw through the to such sale. Should the American bank instruct the Credit Lyonnais or Societe General© on the Paris office local bank to have the goods returned to the shipper, the of the company. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

454 FEDERAL RESERVE BULLETIN. MAYI, 1919. The market for bills drawn in dollars on New York, SECURING GOODS WITHOUT DOCUMENTS. compared with other bills, is ascertained in the Paris To secure the goods before the arrival of the bill of market. Local exporters' bills are usually drawn in lading the navigation company will accept a bank guarfrancs. anty. The expenses are said to be small. If the missing A credit is opened against documents consisting of document is the certificate of origin, the presentation of invoice, bill of lading, and insurance policy. Bills are which entails the benefit of the minimum tariff on mernegotiated directly at the local banks. Exchange rates chandise which is entitled to it, the consignee or his are based on the Paris rate, being 10 to 20 centimes ($0.04) representative makes a declaration at the customhouse per dollar above that rate. The bills are generally domito the effect that the said certificate of origin will be ciled at Paris or Marseille. produced within a certain time; in default of which, the DAILY NEWS OF EXCHANGE RATES FROM PARIS. duty will subsequently be assessed on the basis of the Local banks receive a daily telegram from Paris as to general tariff. After declaration, verification, and receipt the New York rates. These rates are also given in the of the minimum tariff the goods may then be removed. Paris papers, which reach Algiers several days later. All There are no expenses in connection with this formality. information comes from Paris as to exchange rates throughout the world. Dollar bills, drafts, etc., are converted DOCUMENTS NEEDED. into local currency according to the Paris rate. The A consular invoice is ordinarily not necessary. An price on gold coin is determined by the Bank of Algeria. invoice is necessary only for steel declared as "ordinary" There are no exchange tables (dollars into local curinstead of "fine, for tools." All steel bars valued at or rency) published or obtainable here. Local banks get over 75 francs ($14.48) per 100 kilos (220.46 pounds) is no regular quotations of discount rates from New York or charged as "fine steel, for tools" (the duty being higher other American banks, except from their principal office than for ordinary steel). The value must be included in Paris. They charge sufficient to cover their local in the declaration and justified by the production of the expenses on the business they forward to Paris. original invoice vised by the French consul. ALGERIAN IMPORTER PAYS COLLECTION AND STAMP CHARGES. A bill of lading is required by law, in addition to the documents above mentioned. At the present time most purchases from the United The person in possession of the bill of lading is recog- States are paid against documents at the American port. nized by the customs officials as the owner of the goods. The Algerian purchaser pays the commissions demanded He is authorized, at his request transmitted in a provisory by the local bank. declaration, to examine the merchandise and verify the Simple or documentary checks coming from abroad pay quality and the weight, under control of the customs a fixed charge of 20 centimes ($0.04). The bills of exofficials. change must be stamped according to the tariff of 5 cen- When bills of lading are made to order, it is not possible times (SO.01) per 100 francs ($19.30). The stamp is usually to secure the goods without producing the bill of lading paid for by the person presenting the draft. except by bank guaranty. Generally, the same applies The expenses of collection and banking charges are to bills made out to the order of the consignee. The generally paid by the one presenting the bill. There are, customhouse delivers the merchandise to the bearer of the however, numerous exceptions to this. bill of lading. It seems to be the policy of the banks to accept few risks. Judging by American standards, ultraconservative SALS AND RESEIPMENT OF MERCHANDISE. policies appear to prevail. In case clients desire to sell the goods, the banks will BANKS ACCEPT CONSIGNMENTS, PARCELS FOR DELIVERY, attend to the sale. ARRANGE FOR. STORAGE. In case the merchandise remains in the customs ware- Banks accept the consignment of goods. The condi- house, no import duty having been paid, reexportation is tions vary according to the nature of the merchandise. easy and without complicated formalities. This can be A common rate is approximately 5 centimes per square operated by the simple production of a transshipment meter (§0.096 per 1.2 square yards) per day. Parcels are permit bearing a stamp of 0.05 franc (approximately $0.01). also accepted for delivery to consignee against payment This document is drawn up at the customhouse by the of draft. bearer of the bill of lading. In case the goods have been In case of necessity, a bank will arrange for the storing really entered, the tribunal can be requested to nominate of goods, the rate being determined by the nature of the another consignee who will take charge of the goods and goods. The insurance is also arranged for, the amount reach an agreement with the shipper. varying according to the nature of the goods. It is cus- When the duty has actually been paid, it is very doubttomary for these expenses to be paid by the one at fault; ful if reimbursement could be secured. Reimbursement the bank, however, looks to the sender of the goods for can not, in principle, be made in the case of goods rereimbursement. shipped abroad. The director can, however; decide if Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

IVIAI I, 1910. FEDERAL RESERVE BULLETIN. 455 it is proper ^/authorize the restitution of .this duty in the COMMISSIONS FOR COLLECTIONS. ease of merchandise which has not ceased faf be^under the The commission for collecting clean and documentary control of the customs authorities. items on Alexandria is 0.1 per cent. Total cost of col- In drafts drawn on Algeria in the United States, it is lecting clean and documentary items on Cairo is 0.1 per preferable to remit in francs or at the Paris sight rate. cent; on other towns the cost varies from one-fourth to When a bill is drawn on Algeria in other than French three-fourths of 1 per cent, according to geographical currency, it is not customary, although sometimes done, location. For obtaining an acceptance of a bill which is for the drawee to pay such bill by a draft purchased from not left for collection a commission is charged oi' 6 piasters another local bank. There is no provision of law or trade tariff ($0.29955) plus postage. custom as to the rate of exchange on drafts drawn in a Bills of exchange are not subject to stamp tax in Egypt. foreign currency. It all depends upon the Paris .market. The rate of interest allowed acceptors for retiring drafts PROTEST FEES—LAW REGARDING PROTEST. before maturity is at present 6 per cent. The rate is not fixed by law. The minimum protest charges in the immediate vicinity Besides the protest fees in connection with dishonored of the law courts is 38 piasters tariff ($1.90) for bills under item? there are the charges for correspondence. 10 piasters ($0.50) and 58 piasters tariff ($2.90) for those above that amount. For protests made at a distance the EGYPT.] traveling expenses of the protesting officer are to be added. Banks make a charge of 10 piasters tariff (SO.499) for their [Consul Arthur Garrels, Alexandria.];' trouble in connection with protested items. When a bill Exports from Egypt to the United States are almost is paid after protest the charges are collected from the entirely financed by bills on London, the local seller drawee. Protests have to be lodged at the mixed tribunals. drawing under a credit opened there by the American They aue effected by the " huissier," or marshal. In order importer. Bills vary from three to five months, some are to have recourse for nonpayment on the indorsers of a bill drawn clean and others with documents attached. it must be deposited with the court before 10.30 a. m. on There is no local direct market for dollar exchange. the day following its due date. A sight bill may be lodged The small amount offered is purchased by local banks for lor protest at any time. The following is an abbreviated resale in London or other continental financial centers. extract, from the commercial code governing the adminis- By far the larger part of locally drawn bills are in pounds tration of the mixed tribunals in Egypt. sterling. Credits are arranged by cables received by local "Par. 181. Protests for nonacceptance or nonpayment exporters from their European offices, agents, or from some are made up in the forms prescribed for every document bank. drawn up by the marshal. Protest shall be made only All bills are sold in the open market through brokers. upon refusal of acceptance or payment, which shall be veri- Rates are quoted by banks on telegraphic advice from fied by protest at the place of the domicile of the person by European connections. It is customary to domicile bills vrhoin the bill was payable, of the person who undertook to at the place where the credit has been opened. pay it in case of need, and of the person who accepted for honor supra protest. This may be done in a single docu- FREQUENCY OF EXCHANGE QUOTATION'S. ment of protest. New York exchange rates are not locally quoted. Local "Par. 182. The document of protest contains a literal banks are in constant telegraphic touch with their European transcript of the bill, the acceptance, the indorsements connections and so keep themselves informed of any ex- and orders appearing on the bill, and a summons to pay the change markets in which they might be interested. Local amount of the bill. It states whether the party liable to banks purchase dollar drafts at prevailing European rates pay is present or absent, the grounds of the refusal to pay, plus a charge to cover ordinary commission and interest. the inability or the refusal to sign, and the declaration of Exchange tables from, dollars to Egyptian currency and the marshal. A statement of the acknowledgement of the -ace versa are not published. New York discount rates debt is proof only if it be signed and sealed by the party. are not received by local banks, nor are ''forward" rates "Par. 183. No document in the form of a certificate oi New York discount quoted. During the cotton season drawn up by persons engaged in commerce or other persons in the ordinary course of trade local banks do not seek a can supply the place of a document of protest made in the •orofit in the purchase oi London or continental bills. forms prescribed, except in the case herein provided, when Discount rates are not considered in the purchase of foreign the bill is missing. bills. If any discrimination exists against American bills "Par. 184. The marshals or other persons appointed to m favor of bills on other countries, it is due principally to make protests are bound, on pain of dismissal and liability toe fact that local banks have but meager, if any, direct for costs and damages to the parties, to serve exact copies American connections. of all protests and to transcribe them literally day by day Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

456 FEDERAL RESERVE BULLETIN. MAY i, 1913. and in order of date in a special book, numbered, Warehouses Co.. which is the only concern recognized by initialed, and kept in the form prescribed for official the Egyptian Government for storage in bond. Goods registers." may remain in bond for the period of one year, at the expiration of which duty must be paid. The goods, how- IMPORTERS DO NOT PAY COLLECTION" CHARGES. ever, may remain in the bonded warehouses indefinitely. It is not the custom for merchants to pay collection or Charges for storage in bond vary according to the nature banking charges on bills drawn upon them. Such charges of the goods from $0.50 to $1.12J per ton per month. are deducted from the proceeds upon remittance. Some- DRAYAGE CHARGES—INSURANCE RATES. times bills are received drawn ''payable with all charges added." Such items always give rise to complaint, and While banks own their own warehouses, they are inthe charges are difficult to collect. It is not customary for tended almost exclusively for the storage of raw cotton and importers in Egypt to make or assume other supplementary cotton seed and are seldom used for the storage of merpayments or charges. The following is the practice in re- chandise. Insurance rates on raw cotton are very high, gard to the payment of exchange differences on bills drawn and all goods stored in the same building with cotton are in a currency foreign to that of the country: subject to the same insurance premium. English and French moneys (gold) are tariffed by law. Rates for drayage vary greatly, but are never excessive The parity of the pound sterling ($4.8665) is fixed at 97J and are far less than prevailing rates in the United States. piasters tariff, and the 20-franc piece (S3.86) at 77.15 pias- Banks occasionally arrange for the storage and insurance of ters tariff. Unless bills drawn in sterling or franc contain merchandise, but as a rule such business is passed to the the stipulation inserted in the body of the bill, i. e. "pay- Egyptian Bonded Warehouses Co. This company mainable at the current rate of exchange," they are considered tains large floating open policies, and in most cases can insure as being payable at the tariff rates and a loss in exchange more economically than may be done through ordinary may result in the remittance of the proceeds. It is not an channels. The usual rate of insurance on merchandise uncommon practice for importers to accept to pay bills at the deposited in the bonded warehouses is 0.45 per cent per current rate of exchange. It is, however, advisable to have a annum. For shorter periods the rates are proportionately clear understanding with the drawee on the point. It is also higher. advisable to instruct a collecting agent whether ©r not to It is customary for the consignee to pay storage and protest a bill in the event of a drawee refusing to pay a loss insurance charges when the goods have been stored for incurred by exchange. The cost of protesting very often his account. In such cases it is usual to issue delivery exceeds the sum of such loss. Bills expressed in currencies orders with the stipulation to be delivered "against payother than English or French are understood to be payable ment of all charges." at the current rate of exchange of the collecting bank. DELIVERY IN ADVANCE OF DOCUMENTS—PHRASING OF BANKS DO NOT GUARANTEE PAYMENTS NOR ACCEPT BILLS OF LADING. CONSIGNMENTS. In the event of goods arriving before the related docu- The leading local banks do not entertain the business ments, shipping companies will effect delivery under of guaranteeing the payment of drafts accepted by firms. guaranty of a reputable bank. It is customary for banks Local banks accept to take delivery of merchandise and to give such guaranty on behalf of their clients. Such to warehouse it either in their own warehouse or in bond services are frequently rendered free of charge. When for account of third parties. It is not usual, however, there is a charge it seldom exceeds one-fourth of 1 per cent. to undertake the sale of goods sent on consignment. Neither consular invoices nor other documents are re- Banks accept parcels sent to be delivered to consignee quired for shipments made to Egypt. It is not customary against payment of acceptance of draft. The charges for in Egypt to permit examination of goods by the drawee such business would not exceed the actual out-of-pocket without permission from remitting bank. If bills of expenses connected with the handling of the parcels plus lading are made out either "to order" or to his order, it is the usual collection commission. possible for consignee to obtain possession of the goods under banker's guaranty. The usual procedure to insure WAREHOUSING AND STORAGE CHARGES. control of the goods by the remitting bank is to issue bills Goods must be withdrawn from customs within nine of lading in shipper's name and indorse them in blank. days after passing through the doors. No fine is imposed for failure to make entry of goods within nine days speci- HOW GOODS ARE DISPOSED OF OR RETURNED. fied. At the expiration of the stipulated time goods are When shippers desire to dispose of merchandise, local placed in the customs stores and warehousing charges banks will arrange such sales. With a certain class of begin at varying rates, which average about 5 cents per goods it is generally most suitable to dispose of them by package per day, irrespective of size. Goods may be public auction. Banks usually intrust the carrying out stored in bond in the warehouses of the Egyptian Bonded of such sales to the Egyptian Bonded Warehouses Co., Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

i: 1, 1019, FEDERAL EESEEVE BULLETIN". 457 especially in instances where goods are deposited with MOROCCO. them. They see that publicity is given to the sale. If [Consul General Maxwell Blake, Tangier.] the value of the goods to be sold is of importance, interested Exports to the United States are financed hy confirmed dealers are notified. credits opened in European banks—usually in London or When banks are instructed to return goods, the forward- Paris—by the American bankers of the purchasers, and the ing is usually intrusted to the Egyptian Bonded Warehouses local seller draws under these credits. Such credits are Go. Import duty is not assessed on returned goods, but opened in sterling or franc3 and no question of dollar such goods are subject to an export duty aggregating exchange, therefore, arises. 1J per cent. There is a refund of 99 per cent of customs Practically no bills in dollars are drawn on New York, duty paid in Egypt when goods are reexported within six and such bills would be at a disadvantage in relation to months after payment of duty. drafts on London or Paris under existing conditions, there CLAUSES TO BE INSERTED IN DRAFTS, being little or no market for dollar drafts. Bilk drawn are invariably negotiated through a local There being no fixed rate for dollar exchange, drafts bank branch. expressed in that currency are payable at the bank's The common usance of such bills is 00 days' sight, but selling rate oi drafts on New York. The drawer, therefore, periods of 30 and 90 days are frequent. has no exchange loss to support. If it is desired to receive proceeds free of all charges, it is necessary to insert in the HOW EXCHANGE RATES ARE RECEIVED AND QUOTED. body of the draft the phrase '''payable with all bank Exchange rates are quoted locally through the medium charges." Drawees in Egypt, however, are usually unof exchange brokers, who. having obtained the rate from willing to pay bank charges. In order to receive remitthe banks, make visiting rounds to the merchants advising tance for the face amount of bills plus the remitting bank's them of the rates of various currencies. collection charges it would be necessary to instruct the local bank to charge the drawee a rate of commission amply New York rates are not quoted at all. Daily cables are large to permit the bonifying of its charges to the remitting received by local banks from London, Paris, and Madrid bank. But, as previously stated, insistence on payment regarding the exchange of the pound sterling, the franc, of such charges invariably leads to trouble with the and the peseta. drawee. Clear instruction should be given the local bank Information regarding exchange in other financial in regard to the course to be pursued if payment of such centers is obtained from the daily papers issued in London charges is refused. This is necessary in order to avoid and Paris, which arrive in Morocco with a delay of from expenses for cables, protests, etc. Such expenses usually four to seven days. represent a sum larger than the amount in dispute. In No direct quotations on New York being available on the order to enable local banks to remit face amount of bills Moroccan market, dollars are converted into Spanish plus remitting bank's collection charges and interest, the currency, francs, or Hassani currency (the latter very following phrase should be included in the draft: "Payable rarely) through the medium of the pound sterling. Howwith all bank charges, including interest at 5 per cent from ever, a deduction of one or two points would be made by the local banker to cover any contingent adverse fluctuadate of to " Bills so drawn are practically tion pending the liquidation of the draft so purchased. unknown in Egypt. No exchange tables of dollars into local currency are MISCELLANEOUS INFORMATION. published in Morocco. No local banks get regular discount rates from New York or other American banks. "For- If a bill is drawn on Egypt in other than local currency ward" rates of New York discount are not quoted. it is not customary to pay such bill with a draft purchased The margin of profit is usually calculated at one point from another bank. Such procedure is rare and the colplus interest during the period in which the draft is in lecting bank reserves the right to refuse payment by draft transit. No fixed discount rate is taken. The actual issued by another bank. average discount rate is 7 per cent per annum. As previously outlined, the conversion value of the It can not be said that discrimination exists in Morocco pound sterling and the French gold 20-franc piece is against American dollar drafts. Drafts on London or established by law. Drafts drawn in those currencies are Paris would, of course, be preferred, owing to the lack of payable at the rate so fixed. facilities for the exchange of bills on America. Acceptors retiring drafts before maturity are generally allowed a rate of interest equal to 1 per cent below the Bank C OLLSCTIO N COM MISS10NS—STAMP CHARG ES—PROTEST of England discount rate. Such rate is not fixed by law. PROCEDURE. In returning protested items banks usually add a commission of 10 piasters tariff ($0.50) to the protest charges. The average commission charged by local banks in Charges accruing to local banks for returned items may be Morocco for collection of clean items on this city or on paid to the nearest correspondents of those banks* places where branches are established is one-fourth per Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

458 FEDERAL EESERVE BULLETIN. 1, 1919. cent. The average commission charged for collecting docu- DRAYAGE, STORAGE, AND INSURANCE RATES. mentary items is one-fourth per cent plus one-eighth per In the event of a consignee being unable to take up his cent. A mean rate for collecting clean items on various goods covered by documentary draft, thecollecting banker, cities, in all parts of the Shereefian Empire, is one-half upon] instructions from the shipper or his bankers, may per cent. An additional one-eighth per cent is charged take possesssion of the goods and hold them at the disposal for the collection of documentary drafts. of the parties concerned. There exist no warehouses for A commission of Is. to Is. 6d. is charged by local banks such contingencies, but storage may be provided for. in Morocco for obtaining acceptance of a bill which is not - The average rates of drayage are about SI per ton. The left with the bank for collection. storage charges would depend upon the nature of the There are no stamp charges in respect of bills of exchange merchandise. drawn on Morocco. Upon request of the parties concerned, insurance would In a case of protest the amount of the charges depends be effected on goods in warehouse. upon the nationality of the drawee, the protest being made The average annual premium is one-fourth per cent. before the consular authorities under whose jurisdiction For a period not exceeding 15 days, one-tenth the annual the drawee is found. The drawee is liable for the protest rate is charged; for not exceeding one month, two-tenths charges. the annual rate; one-tenth being added for each additional Owing to the existence of the capitulations in Morocco, month up to nine months, after which the full annual the laws of European countries relating to protests of bills premium is charged. The minimum premium for shortof exchange are applicable by the various consular triterm insurance, however, is 1 shilling per £100 valuation. bunals to their respective citizens residing io Morocco. The consignee would, of course, be liable for such MOROCCO MERCHANTS WILL NOT PAY BANKING CHARGES. charges: but, should the contingency arise, the very nature of the circumstances would appear to preclude the recovery Merchants in Morocco almost invariably refuse to bear of the charges. collection and banking charges on bills of exchange drawn on them, or to assume any other supplementary charges. OBTAINING GOODS WITHOUT DOCUMENTS. If the drawer of a bill of exchange on a Morocco merchant In the event of goods arriving before the related docudesires to recover collection and banking charges, such ments, possession can usually be taken thereof under expenses should be covered in his price quotations. The substantial monetary guaranties if the bill of lading is drawee will, of course, pay these in such case unsuspect- made out to personal order. If the bill of lading is made ingly, but would refuse to bear these costs if openly pre- out to open order greater difficulty arises. There is no sented to him. general rule in this connection, arrangements depending Local banks do not guarantee the payment of drafts entirely upon the standing and reputation of the conaccepted by approved firms. Very exceptionally some of signee and his personal relations with the shipping agents. the local native merchant-bankers have guaranteed such No consular certificate is required in connection with bills, discounting them at 2 to 3 per cent above the usual shipments to Morocco, no other documents beyond the discount rates. Neither do the local banks accept con- invoice being needed. signment of goods, but parcels may be sent to them to be It is not customary for the local banker to permit the delivered to consignee against payment or acceptance of examination of goods by drawee unless the latter is a draft, tho charges in such C&SD being similar to those levied person of known reliable character. It must be menon documentary collections, namely, five-eighths per cent. tioned, however, that the drawee can, without authorization, manage to inspect his goods by adroit negotiations CUSTOMHOUSE REGULATIONS. with the customs officials. The time allowed by the customhouse for making entry To give the bankers of the shipper absolute control of of the goods is 20 days in Tangier and in the ports of the goods, the bills of lading should be made outjto the personal order of their correspondents in Morocco. Spanish zone of influence—Larache, Arzilla, and Tetuan. In the ports of the French zone—Kenitra, Rabat, Casa- REEXPORTATION OF GOODS. blanca, M&zagan, S&ffi, and Mogador—this period is limited Banks do not attend to the sale of goods, but if so into 10 days. structed they will have goods reexported. No permit is Storage charges at the rate of 2 pesetas Hassani (26 cents) necessary for this, and no difficulty would be experienced per 100 kilos (220.46 pounds) or fraction thereof per month in normal times. If they have not been withdrawn from or fraction of a month is made on merchandise remaining the customhouse, lighterage charges amounting to about in the customhouse beyond the periods specified. These $1.50 per ton plus storage dues would have to be paid. storage charges should be borne by the consignee. It would not be necessary to clear the goods through the If the goods remain in the customhouse for a period of six customhouse, and duty would not be levied. But if months or longer they are sold by public auction for the She goods have to be returned after having been cleared account of whom it may concern and the customs dues and through the customhouse, it would not be possible to storage charges are deducted from the proceeds. obtain a refund of duty. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MAY 1,1919. FEDERAL RESERVE BULLETIN. 459 WORDING OF DRAFTS. New York rates of discount and exchange are quoted through cable intelligence in the local daily newspapers. The customary phrase to be included in drafts drawn One bank only receives regular cables. on Morocco, in order to enable collecting bank to remit Local banks do not keep themselves posted on daily to the drawers the face amount of the bill without any fluctuations of exchange rates in the principal financial deduction whatever, is "Payable at bankers' selling rate centers of the world. Only alterations in the Bank of of exchange on ." (New York or London, or England rates affect the merchants in this country, and Paris, etc., as the case may be.) even then the influence is not so marked as in other To enable the collecting banker to remit face amount countries. of bill plus collection charges, the bill should embody the The National Bank of South Africa receives regular phrase "Payable at bankers' selling rate of exchange on cables from its New York agency as to rates in New York. , plus collection charges." All banks are notified when there are alterations in the If in addition interest is to be collected, the above phrase Bank of England rate. is inserted in the bill with the addition of the words "plus All local banks receive regular quotations of discount interest." rates from their New York agencies by mail. The one PAYMENT OF BILLS DRAWN IN FOREIGN CURRENCY. bank cited above receives regular quotations by cable. If a bill is drawn on Morocco in other than local cur- "Forward" rates of New York discount are not quoted. rency, the drawee is required to pay such bill by a draft Nothing is available regarding the margin of profit ! purchased from another bank in Morocco, unless he ac- usually calculated in the purchase of first-class commercepts the rate of exchange demanded by the collecting cial bills and time bills, the banks offering no information bank. on this subject. There is no provision by law or trade custom as to the HOW BILLS SHOULD BE DRAWN. rate of exchange which shall be applied on drafts drawn Sooth African banks naturally prefer bills of exchange on foreign currency. to be drawn on London. This is partly due to the fact A rate of interest from 2J- to 3 per cent is customarily that exports from this country to countries outside of the allowed acceptors for retiring drafts before maturity. British Empire are small as corn pared with those to the In the case of a protested or dishonored bill, there would United Kingdom. It must also be remembered that the be collecting charges beyond the protest expenses; The important South African banks are British banks and, as payment of such charges would, in general, be made stated, they naturally prefer all bills to be on London. through the agents or correspondents in New York of (lie Moroccan bankers. COMMISSION FOR COLLECTING ITEMS IN THE IMPORT TRADE. SOUTH AFRICA. The commission charged by South African banks for {.Vice Consul Charles H. Heisler, Cape Town.] collecting clean or documentary items on this city is £ per Exports to the United States are usually financed by cent, exchange, postage and stamp duty being also payletters of credit on London, against which banks generable. A similar commission is charged as the total cost ally make advances for goods held to their order. The of collecting clean, as well as documentary, items on local seller ordinarily draws under a credit opened by the various cities in South Africa. When a bill is not to be American importer. Many local firms make this a strict left with the bank for collection, the bank's commission rule. This credit is generally opened in America at 90 for obtaining acceptance is likewise \ per cent. days', or sometimes 120 days', sight. Practically all bills The usual charges on a draft bill remitted to banks in drawn on New York are in sterling. this country from America for collection are: Commission HOW CREDIT IS ARRANGED. at J per cent; exchange at the rate of the day for demand drafts on New York; postage, Is. (24 cents); stamps, ad The ordinary method of arranging a credit and drawingvalorem. is for the buyers to obtain credit through their bankers in the United States, the shippers drawing on a bank AMOUNT AND PAYMENT OF STAMP CHARGES. named in credit through their bankers. Credits are Stamp charges for clean and documentary items drawn usually cabled on acceptance of order by seller. Some on this country are the same. Stamp charges on sight sellers hold very large credits, against which orders are drafts amount to Id. (2 cents). A stamp charge of Id. (2 sent from time to time. cents) is also made on currency drafts of £10 ($4.8.66) and The bills are negotiated through local banks and are under, while for a currency draft exceeding £10 but not always domiciled in London. There are no bill brokers exceeding £50 ($243.33) the charge is 6d. (12 cents); therein South Africa. after 6d. (12 cents) is charged for every additional £50 (§243.33) or part thereof. FREQUENCY OF EXCHANGE QUOTATIONS. The payment of these charges depends on how^the]bill Exchange rates are quoted once a week in the daily is drawn. Usually American correspondents draw their newspapers. Information of this kind is generally obtain- bills "plus all charges," in which case all charges are paid able from the local banks. by the drawee of the bill. 115631—19 8 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

460 FEDERAL RESERVE BULLETIN. MAY 1, 1919. Deductions for these stamp charges are made by local be less than one-fourth per cent. Such a guaranty is. banks from remittances to banks in other countries in however, often given in the form of letters of credit, and payment of such collections, unless the charges are paid the usual charges are one-fourth to one-half per cent. by the drawee; then, of course, no deductions are made. It is not customary for South African banks to accept No charge is made by some banks here for stamps on the consignment of goods, though small parcels may be checks remitted to other banks in payment of their col- addressed through the post office to consignees in care of lections. But other banks charge Id. (2 cents) for each one of the banks. In such case delivery of the parcel can check. only be obtained when the bank has signed the release form after consignees have duly paid or accepted the rela- FEES AND PROCEDURE FOR PROTESTED BILLS. tive draft. There is no charge when the parcel is taken In case of bills being protested, the following noting fees over by the drawee within a few days. Should the bank, are charged: Presenting for noting, 6s. 8d. ($1.62), with an however, be put to any expense such as storing, clearing, additional charge of 6s. Id. ($1.48) for each notice sent to insuring, etc., such expenses, if not paid by the drawee, drawer, acceptor, or indorser. must be paid by the drawer. The usual charge on a bill noted against drawer and drawee only is: Noting, 6s. 8d. ($1.62); notice to acceptor, ENTRY OF GOODS—FINES AND DOCK RENT. 6s. Id. ($1.48); notice to drawers, 6s. Id. ($1.48); total, After the arrival of goods at South African ports, the 18s. lOd. ($4.58). time allowed by the customhouse for clearing the goods Any out-of-pocket expenses incurred by notary public free of fine is 24 hours after notices have been posted in the such as cab or car hire, will also be charged. harbor offices signifying the arrival of the carrying vessel. In the event of the item being paid after protest, the An exception is made in the case of steamers bringing their charges are, as a rule, collected from the drawee. own shipping documents which could not have been re- It is customary to note all bills which are dishonored by ceived at an earlier time by any other reasonable means, nonpayment after acceptance. When a bill is noted or in which case the time is extended to 36 hours. protested it must be noted on the day of its dishonor. The A fine of 3d. (6 cents) per harbor ton is imposed for failure protest may be subsequently extended as of the date of the to clear within the time limit. noting. Where the acceptor of a bill becomes insolvent When the goods have not been cleared in the time specior assigns his estate, or suspends payment before it fied and a fine is imposed, it is customary for the agent of matures, the holder may note the bill for better security the foreign shipper to charge the fine to the same party to against the drawer and indorsers. It should be rememwhom the bank is instructed, to debit the charge for clearbered that a protest must contain a copy of the bill and be ing the goods, which is usually the consignee. It is imsigned by the notary. possible to state whether consignees are able to recover the To preserve recourse against the drawer or indorsers on amount of the fine in cases where it can be shown that the the bill, the bill must be presented for payment within the shippers are at fault in not having posted the documents business hours on the date of maturity by a duly qualified in time. notary public at the place where the bill is made payable, In addition to the fine, goods which are not cleared and notices of dishonor duly dispatched by the notary to within 72 hours of the notice of the arrival of the vessel the parties concerned. having been, posted in the harbor offices are liable to dock IMPORTER PAYS COLLECTION AND BANKING CHARGES. rent at the rate of 3d. (6 cents) per harbor ton per day for / days, and after 7 days at the rate of Is. (24 cents) per Merchants in this country generally pay the collection harbor ton per day until sent by order of the customs deand banking charges drawn upon them, especially with partment to the King's warehouse. The harbor departregard to bills received from America, as practically all ment's charge for placing goods in the King's warehouse such bills bear a clause under which all charges are paid is 4s. (96 cents) per harbor ton. The customs department by the drawee. The payments of such charges are, howthen charges King's warehouse rent at the rate of Is. 3d. ever, a matter of arrangement between the buyer and (30 cents) per harbor ton per week. seller. Other supplementary payments or charges are It is customany for the banks to debit these charges to not paid or assumed by importers in this country. the same party to whom they are instructed to debit the If the bill does not contain the clause mentioned or a clearing charges, which is usually the consignee. Whether similar clause the collecting charges are deducted from the the consignees are able to recover the amount of these amount remitted to the drawer, or party for whose account charges in cases where it can be shown that the shippers the bill is being collected. are at fault for not posting the documents in time, is im- BANKS RARELY GUARANTEE PAYMENTS OR ACCEPT CON- possible to say. SIGNMENTS. WAREHOUSE HANDLING AMD STORAGE CHARGES. Local banks do not as a rule guarantee payment of drafts accepted by approved firms, but should they have occa- In cases of necessity, the banks arrange for the storing sion to perform a service of this kind, the charge would not of goods. The rate for delivery when transferring the Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MAY 1,1919. FEDERAL RESERVE BULLETIN". 461 goods from the docks to town warehouses is 3s. Gel. (85 consignee without question, but permission would not be cents) per harbor ton. The labor charge for receiving granted to permit the opening of the cases and examinainto storehouse is 9d. (18 cents) per harbor ton, while (>d. tion of the contents without the proper authority. (12 cents) per harbor ton per week is charged for storage HOW BILLS OF LADING SHOULD BE MADE OUT. of the goods. When the goods are to be delivered, the labor charge for loading at time of delivery is 9d. (18 cents) It is possible for consignees to obtain possession of per harbor ton. No figures are obtainable regarding the goods on bills of lading made out "to order" without procharge for delivery from the warehouses, as this charge ducing the bills of lading. This is accomplished by means varies, of course, according to the address of the consignee, of a guaranty to the steamship company holding them and it is said that there are no fixed raxes according to free from all liability, but such guaranties are not accepted the distances the goods have to be moved. unless a local banker joins in them. This guaranty is The local banks arrange for the insurance on goods in only signed by the bank when the drawee is personally the warehouse in such cases, the rate of insurance being known to them and is of undoubted reliability. stated by one bank as 3d. (6 cents) per cent per week, Consignees can not obtain delivery of goods on bills of and by another bank as 5s. (§1.22) per £100 ($486.65) per lading made out to the order of themselves without proannum. It is customary for the banks to charge storage duction of the bills of lading, except by means of a bankand insurance expenses to the same party to whom they er's guaranty similar to that mentioned in the preceding are instructed to debit the clearing charges, which is paragraph. usually the consignee. Bills of lading made out to the order of the shipper give the most complete control of the merchandise. Con- OBTAINING SHIPMENTS WITHOUT DOCUMENTS. signees can then only obtain possession of the goods by If the arrival of the goods is known before the relative producing the bill of lading properly indorsed, or giving documents are to hand, the consignee usually endeavors the steamship company a banker's guaranty, in which to obtain delivery by means of the banker's guaranty in case the shippers are of course fully secured. lieu of bill of lading and to clear the goods by the production of such evidence as to quality, value, etc., as the PROCEDURE FOR SALE OR RETURN OF GOODS. importer is able to supply. In such cases the customs In case it is desired that the goods be sold after arrival authorities almost invariably demand a cash deposit in the local bank interested is represented at such sales. addition to the duty pending arrival of the relative docu- In such instances, where it is necessary to have the ments. The deposit is always recoverable on production goods returned to the shipper, a permit to export must of the relative documents within the time allowed, which first be obtained. The necessary freight space is then is usually three months, but should the duty be overpaid secured and the goods shipped according to instructions. the overpayment is not recoverable. Bankers join in Customs entries must be passed for all goods exported. guaranties for such purposes only when the consignee is In the case of duty paid it is an '''ordinary export entry," known to them and they are satisfied as to his reliability. and in the case of goods in bond it is an "export for ware- The usual expenses connected with clearing without house entry." the complete relative documents are extra cartage from Goods which are in bond in this country may be exported searcher's office at the rate of 2s. Cd. (Gl cents) per harbor without payment of any duty. Goods upon which duty ton, the searcher's office fees, which are usually Cd. (12 has been paid are, of course, exported as duty-paid goods. cents) per package, and a small extra agency fee accord- The South African customs do not grant refunds in cases ing to the circumstances for arranging and making the where duty has been paid and the goods passed out of deposit with the customs authorities, usually about one- customs control. half per cent. PHRASES TO BE INCLUDED IN DRAFTS. DOCUMENTS REQUIRED—LIMITED EXAMINATION OF GOODS The customary phrase to be included in drafts drawn PERMITTED. on this country in United States dollars or any other foreign Consular certificates for shipments from the United currency in order to enable banks in this country to remit States to this country are not necessary when goods are to banks in the United States the face amount of such the produce or manufacture of the United States. bills without any deduction whatever is: "Payable with The other documents required for clearing purposes for all collecting charges as well as exchange at the current goods from the United States are bills of lading and manu- rate for demand drafts on New York." facturer's or supplier's invoices and shipper's statement, The customary phrase to be included in drafts drawn showing in detail ail charges up to c. i. f. at the South on this country in United States dollars or any other foreign African port. The invoices must bear or be accompanied currency in order to enable the banks in this country to by certificates of home consumption value on the pre- remit to banks in the United States the face amount of scribed forms. such bills, plus the collection charges of the American After the arrival of goods, agents usually allow exami- banks is: "Payable with all collecting charges and prinnation of the outward appearance of goods by drawee or cipal charges as well as exchange at the current rate for Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

462 FEDERAL RESERVE BULLETIN. MAT 1, 1919. demand drafts on New York." If interest is also to be RULES GOVERNING PROTESTED ITEMS. remitted the phrase is: "Payable with all collecting When an intend bill is dishonored it is not necessary to charges and principal charges of interest (from date of preserve the recourse against the drawer and indorser. bill to approximate date of payment in New York) as well But a foreign bill must be duly protested; otherwise the as exchange at the current rate for demand drafts on drawer and indorsers are discharged. The amount of New York." charges in case of protest is a matter of lawyer's fee, no Banks in South Africa do not guarantee to remit proceeds fixed rule governing the charge; in the event the item is of bills in United States dollars without loss of exchange, as paid after protest the charges are collected from the drawee. the*exchange rate may fluctuate while remittance is in transit. STORAGE AND CARTAGE RATES—INSURANCE FACILITIES. The time allowed after arrival at the customhouse for RETIRING OP DRAFTS—RETURN OF DISHONORED ITEMS. making entry of the goods is 14 days. There is no fine When a bill is drawn on this country in other than local for exceeding this time limit. Goods are placed in storage currency, the foreign currencies are changed at the rate for three months, after which they are liable to be sold; of the day into English currency and the proceeds re- but in practice they rarely are sold. Legal warehouse mitted to New York in dollars or sterling. charges are made for government storage at reasonable To bills drawn in a foreign currency it is the invariable rates for the first three months. The rate after three custom of the local banks to apply the exchange rate of months is one-fourth the original rate. There is a lengthy the day. itemized schedule, but for ordinary merchandise the orig- Acceptors are generally allowed interest at the rate of inal charge is $0.06 per cubic foot. Cartage rates are $0.06 2\ per cent per annum for retiring drafts before maturity, per parcel, or $0.18 per dray load. Consignee customarily but such a rate is not fixed by law. pays storage and insurance charges. In returning dishonored noted bills, South African In case instructions are given by the drawer, the local banks require from correspondents the amount of noting bank will arrange for private storage of goods. But it is charges plus stamps affixed, payment of such charges being preferable to store in the King's warehouse. Private waremade through their New York agencies. house rates are variable. Local banks, if instructed, will also arrange for insurance of goods, the rate being approx- JAMAICA. imately $5 per year per 300 cubic feet at $300 valuation. [Consul Ross Hazoltinc, Port Antonio.] The consignee eventually pays storage and insurance fees. The export trade of Jamaica is chiefly with the United If goods arrive in advance of the related documents they States, hence most of the bills are drawn in dollars, and may be delivered under bond of indemnity to the shipping these have a ready market. Bills covering shipments to company without extra expense. America are drawn on New York or Boston; credit is opened by the importer, who lodges cash or satisfactory CONDITIONS GOVERNING EXAMINATION AND CONTROL OF securities with his banker, to be drawn against by sight GOODS. drafts with bills of lading attached. The only document required by law in connection with Dealings with Europe are in sterling, and the bills are foreign shipments is the invoice. The examination of invariably domiciled in. London. New York's sterling goods is permitted at the discretion of the customs officials rate is quoted by the local banks whenever fluctuations and the bank without special instructions from the shipper. occur. If bills of lading are made out to the order of the consignee, New York discount and exchange rates are quoted the consignee may obtain possession without producing regularly by all local banks, advices being received by the bills of lading by giving bond. To give the exporter cable from the New York agencies of these banks. Drafts absolute control of the merchandise the bills of lading are converted at New York rates. The purchasing rate should be made out to the order. of the local bank at for time bills on American banks is also based on New destination. York quotations. If instructed through the client's bank, the local bank will undertake the sale of goods to other than the consignee. COMMISSION RATES AND STAMP CHARGES. For the return of undelivered goods consular invoice and The commission for collecting either clean or documen- bill of lading is necessary. They are cleared as in transit, tary items is J to J per cent, plus interest on time Tbills. without duty; and if duty has already been paid on them Commission fdr obtaining acceptance if the item is not a refund may be secured. left for collection is discretionary. Stamp charges never exceed 2d. for £5 ($0.04 for §24.33), PHRASEOLOGY OP DRAFTS. or 2s. for £100 (§0.48665 for §486.65). Whether these To enable a remittance of full face amount of bills, charges are paid by the drawee depends on how the bill drafts should be drawn payable "with exchange"; if colis drawn up. No stamps are required on checks remitted lection charges are also to be remitted, the draft should be by the local importer in payment of collections due. drawn payable with exchange, interest, and all other Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MAY 1,1919. FEDERAL RESERVE BULLETIN. 463 charges. There is no legal provision regarding bills drawn In order to facilitate comparisons between in local currency, and whether payment is made by draft the several banks the various asset and liapurchased in this country is a matter of bank agreements. bility items, as on previous occasions, have In addition to the lawyer's fee in case of protests a stamp been arranged under uniform heads. This, of of the value of 4s. (SO.97) is required. There are no course, involved considerable regrouping of the further charges. original items, especially on the asset side of the statements, and considerable swelling of Comparative Statement of Leading Banks of the sundry assets. It is thought, however, Issue December 31,1914 and 1918. that, notwithstanding the sometimes arbitrary groupings, the general effect of the war on the In continuation of similar figures printed on metallic reserves and the loans and advances, page 998-997 of the October (1918) BULLETIN, particularly to the Government, on the asset there is presented below a comparative state- side and of the deposit and note accounts on ment showing the condition of the leading the liability side are brought out with sufficient central banks of issue in 1914 immediately clearness. preceding the outbreak of the war and at the In place of the figures for the Russian State close of December 1918, i. e., shortly after the Bank, which has not published its condition conclusion of the armistice. For the Federal statement since October 29, 1917, the present Reserve Banks and the Bank of Italy figures compilation presents comparative data for the for the earlier year relate to the close of De- Bank of Java. cember. Comparative statement showing principal assets and liabilities of the leading hanks of issue at dates specified. [In thousands of dollars: i. e., 000 omitted.] Fede B ra a l n R k e s s . erve I | E B n a g n! l ? a : n o d f . Bank of France. | Bank of Italy. Re G ic e h r s m b a a n nk. Au ri s a t n ro B -l a lu n n k g . a- j j K S i w ks e b d a e n n k . , Dec. i Dec. July i Dec. July Dec. Dec. Dec. July i Dec. July Dec. July Dec. 31, i 27, 29.. 25, 30, 26, 31, 31, 31, ! 31, 23, 31, 31, 31, 1914. | 1918. 1914. ! 1918. 1914. 1918. 1914. 1918. 1914. ! 1918. 1914. 1918. 1914. ! 1918. ASSETS. Gold coin and bullion.211,32J.;2.084,445 ! { 799,279 604,009] 157,827 298,261] 538, >,794 53,074 24,746 76,532 Silver and other me- i, 5(57 i 384,994 X ! !}236,633 tallic reserve 17,823; 8,720 ; 11 120,689) 61,441:1 14,890 65,409j 4, 59,031 11,524 l,408J 98 Total metallic vault reserve.259,144:2,093,171 185,567J 384,994; 919,968 725,450: 236,633 172,717 363,670; 513,572,309,825• 64,598 26,154 76,630 Gold held abroad ....I 5,829 393,162! Foreign credits | 6,770 450/339 8,195 149,645 13,564 12,239 Government securities S B O h o t o h n r e d t r s - t , e c r o G m n o s s v o e e l c s r u , n r e m it t i e c e n s . t . . . ! 205 2 2 8 8 2 , ,0 8 7 6 7 9 443,343 399,641', 41,0 9 1 63 9 i j 6 4 8 1 0 , , 0 5 5 1 7 8 J100,113311,012,2601 7,9601 I ,254,599;-! f 12,155j ' 6 1 , , 3 50 0 2 6 , , 9 0 5 3 4 8 ; | i I j 7,332 14, securities | 8,755 47,219 38,600J3,348,550 5,634 22,418; I. Total , ! 8,S60; 358,765 143,343 399,6411 80,58214,070,125 105,76511,034,678 7,9601,254,599! 12,156] 7,S09,892j 7,332 14,638 Notes of other banks ! of issue i 4,624 30,491 15,416 42,905 2,740! 715 90,4781 I, Loans and discounts..! 9,909 2,006,611 230,222 484,582; 471,746 401,614 165,405 307,818 495,296;6,530,49l'l67,718 588,959! 42,303 94,014 Advances on bullion | I and specie, sccuri- i : | | ties, merchandise, | etc ! 146,443 234,633 29,180; 147,202 48,1211 1,429 37,790 l,691,5J2i. 48,708 Securities j 734 39,486i 39,542 94,392! 37,159! 64,349 59,9431. 1,351 Sundry assets | 9,237 • 28,006 77,173j 308,162 43,610! 515,062 51,90l| 569,0601 23,358 253,4741 813 34,244 Total 292,608 4,522,873 559,132J1,269,217jl, 695,912|6,581,085 633,69012,409,569J1,064,081:8,937,025J615,196j 10,558,856; 92,059J281,824 LIABILITIES. ! Capital paid in 18,051I 80,681 70,822 70,822J 35,222 35,223 34,74.0 34,740, 42,840= 42,876 42,546 42,516! 11,900 13,400 Surplus i 1,134 16,992 15,,8501 8,206 8,292 13,515 18,492 17,726I 22,629 6,5151 8,5091 2,975 3,350 ( G ) o th v e e r m d i e n p e o n s t i t d s eposits. 263,948 ! 1 ,52 6 0 3 , , 0 3 1 6 6 7 2 6 6 „1 4 _, , , 8 8_ 3 6. 0 9 ! 11 7 11 2 55 5 ,, , 0 2 5 8 9 9 ! ! 1 7 8 3 2 , , 8 8 3 8 4 1 4 2 5 1 6 , , 5 6 5 7 5 6 1 4 1 0 8, , 0 3 3 2 5 0 1 5 5 1 .1 4 _, , ,3 1 .2 1 _9 5 .'! 299,515:3,291,924 59,012 1,446,806! 18,440 36,049 Bank notes in circula- | tion , 10,00012,802,366 184,566i 342,149J1,289,885J5,838,172j 417,3521,780,108 692,442:5,285,182 431,489 8,713,207 54,367:218,027 Sundry liabilities ! 55,309 531 48! 105,914 224,167 j 9,728; 10,785 11,558! 294,414j 75,634 347,788| 4,377! 10,998 Total 292,608-4,522,873 559,1321,269,217J1,695,912|6,584,085J 633,690-2,409,5691,064,08l'8,937,025J615,196J10,558,856!92,059:281,824 i Including notes of foreign banks of issue. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

464 FEDERAL EESERVE BULLETIN. MAT 1, 1919. Comparative statement showing principal assets and liabilities of the leading hanks of issue at dates specified—Continued. [In thousands of dollars: i. e., 000 omitted.] National Bank, No N rg o e r s w B ay a . nk, C D op e e n n m h a a r g k e . n, Bank of Spain. Ne B tS a f n a k n o d f s, Swis B s a N n a k t . ional Bank of Japan. Bank of Java. i ! i i J 19 3 u 1 1 l 4 , y . .D 1 e 9 c. 1 8. 31, Ju 1 l 9 v 1 4 3 . 1, De 1 c 9 . 1 8. 31, Ju 1 l 9 y 1 4 2 . 4 ,1 j De 1 c 9 . 1 8 2 . 8 ,! j J" , l £ y h 1 D 2 9 e 8 1 c 8 , . . Ju1l9y1 42.3, D1e9c1. 83.1, | Ju1n9e1 43.0, De 1 c 9 . 1 8 2 . 9 , ' M 1 a 9 r 1 . 4 . 31,De 1 c 9 . 1 8. 31, ASSETS. Gold coin and "bullion. 11,676 32,691; 52,159 105,7' 430,072J 65,140 27777.,155 34,753 80,041 j 258,757 357,287 12,418 43,423 Silver and other me- 24,410 tallic reserve 654 143,063! 123,936: 3,307 3,43o! 3,656 11,2741 11,668 5,779 Total metallic vault reserve. 11,676 32,691 24.410 52,813 248,861; 554,008; 68,477 280,590 38,409 91,315 253,757) 357,287 24,086 49,202 Gold held abroad 10,249 19,568! Foreign credits 31 ,!?3i 16,8811. Government securities Bonds, consols, etc... 4,403; 07,047; 95,434; | 17,33! 10,967 S O h t o h r e t r - t G er o m ve r s n e m cu e r n i t t i s e e s - . i j [ 5,003 1,499 \\ 1,885 \\ 13,237 23,137 curities .1 l,071| 29,199 37,252 I 11,176 15,953! Total. J 0,534! 96,246 132,686 5,003 28,515 27,377 13,237 23,137 2 Notes of other "banks of issue 2,307i 9 A Lo d a v n a s n a c n es d o d n is c b o u u ll n io ts n .. 20,452 113,349 27,098; 65,870 152,579 220,287 35,430;i01,554| 18,099 112,620 76,061 49,007 I] 794 "16," 684 and specie, securities, merchandise, etc 1,646 1, Wx 3,106 5,243 24,798 56,085 2, 7,847 248,336 13,674 33,348 Securities 3,635 5,017 2,602 2,249 3,612 3,560 2,446 1,809 9,775j 3,564 3,569 Sundry assets 2T~" 368 9,627 792 13,536 928 36,533 5,594 10,482 204,488j 415,096 1,731 6,608 Total. 50,046 172,692 66,518 164,790 939,647138,248 479,821 67,247 235,655 577,59611,097,103 61,086 126,548 LIABILITIES. Capital paid in 6,700 9,380 7,236 7,236 28,950 8,040 8,040 4,825 4,825 18,675! 18,694 2,412 2,412 Surplus 3,651 4,569 2,199 2,488 5,404 2,011 2,042 471 664 18,551! 19,322 1,255 1,465 G Ot o h v e e r r n d m ep e o n s t i t d s eposits , . I- 3,862 34,051 5,4961;| f \ 30, 8 6 5 4 9 6 1 / 96,931 22 1 5 , , 2 0 5 32 6 1,904 35,563| 28,819 35,455 25 1 4 0 , , 5 9 8 1 5 3 ! ! 47 3 9 9 , , 4 1 1 0 9 4 •38,157 Bank notes in circulation , 33,788 4S,244i 39,525i 120,60' 373,557 640,029 124,796 429,,;7 17; 8,3,176! 188,311 274,854! 536,702 47,470 79,449 Sundry liabilities 2,0-15 76,44S; 12,092! 2,952 1^497 4,454) 2,606j 6,400 3,8 2,0 5,065 Total. 50,046 172,692; 66,548: 164,790 939.647138,248 479,8211 67,24?! 235,655 577,5961,097,1031 61,086| 126,548 Commercial Failures Reported. than last year in all of the 12 districts, notably in the third, seventh, and ninth dis- With a 32.2 per cent reduction in number tricts, and only in the eighth, tenth, eleventh, during three weeks of April, commercial and twelfth districts is the indebtedness larger failures in the United States, as reported to than in March, 1918. R. G. Dun & Co., disclose no departure from the remarkably favorable exhibit that has been made for a long period. The statement Failures during March. for March, the latest month for which complete statistics are available, further demonstrates Number. Liabilities. that the after-war readjustment is causing no Districts. serious business disturbance; indeed, the 629 1919 1918 1919 1918 insolvencies of March are less than in any month since October, 1899, excepting the 602 of First 101 159 SI, 689,623 S2,527, 491 Second 102 185 4,033,0*8 5 "' February, this year, and are the smallest for Third 22 99 769,932 1,420,861 March back to 1894. While the liabilities, Fourth.... 51 93 1,170,267 1,754,144 Fifth 36 54 457,495 522,255 813,595,471, are the largest since last Novem- Sixth 52 93 679,250 789,201 Seven til... 86 194 1,351,560 h800,141 ber, they are the lightest for March back to Eighth.... 31 49 368,639 347.297 1907 and are 4,000,000 below the total of that Ninth 13 46 56,947 71S'. 231 Tenth 30 34 582,871 218' 624 month of 1918. When the March defaults Eleventh., 17 31 252,971 192,997 Twelfth... 105 2,182,908 1,782,100 are separated according to Federal Reserve districts, it is seen that the number is smaller Total. 629 1,142 13,595,471 ! 17,672,331 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MAT 1, 1919. FEDERAL RESERVE BULLETIN. 465 State Banks and Trast Companies Admitted. Total re- Capital. Surplus. sources. The following list shows the State banks and trust companies which have been admitted to District No. 12. membership in the Federal Reserve System Bank of Easle, Eagle, Idaho $25,000!. §191,097 during the month of April. Bank of Camas Prairie. Grangeville, Idaho 50,000! $50,000 866,345 One thousand and nine State institutions Security Savings Bank, Erigham, Utah.. 50,000| 13; 000 653,174 are now members of the system, having a total capital of $366,563,175, total surplus of NOTE: Changes of names. $418,363,161 and total resources of $7,908,- Mercantile Trust & Deposit Co., New York, N. Y., to Mercantile Trust 461,501. Co., New York, N. Y. Sullivan Bank & Trust Co., Montgomery, Ala., to Merchants Bank of Montgomery, Montgomery, Ala. Capital. Surplus. Total re- Voluntary liquidations. sources. First Standard Bank & Trust Co., Maysville, Ky. Farmers & Stockgrowors Bank, Salt Lake City, 'Utah. The Security Bank, "Webster, S. Dak. (reincorporated and admitted District No. 1. under the name of the Security Bank & Trust Co., Webster, S. Dak.). Franklin. County Trust Co., Greenfield, Consolidation. W M al a tn ss a . m Trust Co., Waltham, Mass § 2 20 0 0 0 , , 0 0 0 0 0 0 8 1 1 0 0 0 0 ; ,0 00 00 0 ,3 4 2 , , 8 721,760 The Mercantile Trust Co. and the Union Trust Co., of Little Rock, .Ark., have consolidated under the name Union & Mercantile Trust Co. District No. 2. Tvtcchanics Bank, Brooklyn, N. Y 1,600,000 320,000 34,706,847 The Fidelity Trast Co. of Buffalo, N. Y.. 1,000,000 1,000,000 19,026 685 New National Bank Charters. Ironbound Trust Co., Newark, N. J 200,000; 100.000 7,353,873 District No. S. The Comptroller of the Currency reports the Burlington City Loan & Trust Co., Bur- following increases and reductions in the numlington, N. J 100,000 100,000j 1,684,332 The Berks County Trust Co., Heading, Pa. 250,000 155,000 4,137,295 ber of national banks and the capital of na- District No. 4. tional banks during the period from March 29, 1919,. to April 25, 1919, inclusive: The Shadyside Bank, Shadysido, Ohio. -. 35,000 3,9 The Union Savings Bank "& Trust Co., Banks. Steubcnville, Ohio 250,000 250,000 3,482,390 Now charters issued to 16 The Farmers & Merchants Bank Co., Metamora, Ohio 25,000 5,500 297,831 With capita! of SI, 205,000 Increase of capital approved for 25 District No. 5. With new capital of 2,250,000 The Peoples Bank, Newbcrn, N. C. 100,000 50,000 1,834,593 Aggregate number of new charters and banks increasing capital 41 District No. 6. With aggregate of new capital authorized 3,455,000 State Bank of Reform, Reform, Ala 25,000 6,000 312,108 Number of banks liquidating (other than Bank of Tennessee, Nashville, Term 200,000 50,000 250, GOO those consolidating with other national banks under the act of June 3, 1864) 5 District No. 7. Capital of same banks 230,000 Kempf Commercial & Savings Bank, Number of banks reducing capital 0 M C ac h o e m ls b ea , C M ou ic n h ty Savings Bank, Lenox 40,000 40,000 776,341 Reduction of capital 0 and Richmond, Mich 50,000 10,000 712,809 Total number of banks going into liquida- Citizens Bank of Delavan, Dclavan, V/is. 60,000 25, OOOj 87b, 970 tion or reducing capital (other than those District No. 8. consolidating with other national banks under the act of June 3, 1864) 5 First State Bank, Prescott, Ark 50,000 1,500 305,616 Aggregate capital reduction 230,000 District No. 9. Consolidation of national banks under the act of Nov. 7. 1918 3 Valley County Bank, Ilinsdale, Mont 25,000 5,000 175,516 Capital '. 775, 000 Security Bank & Trust Co., Webster, S. Dak I 60,000 25,000 1,601,387 The foregoing statement shows the aggregate of increased capital for the period of the District No. 10. banks embraced in statement was 3,455, 000 First State Bank, Clinton, O kia j 50,000 5,000 510,094 Against this there was a reduction of capital owing to liquidation (other than for con- District No. 11. solidation with other national banks under the act of June 3, 1864) and reduc- Gonzales State 'Bank & Trust Co., Gonzaies, Tex 75,000 25,000 674,995 tions of capital of 230,000 Farmers State Bank, Rice Tex 40,000 11,000 183,386 First Guaranty State Bank, Seymour, Tex 35,000 3,000 104,463 Net increase 3, 225,000 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

468 FEDERAL RESERVE BULLETIN. MAY 1, 1919. Foreign Branches. DISTRICT NO. 2. A list of foreign branches of national banks Trustee, executor, administrator, assignee, receiver: First National Bank, Paterson, N. J. which opened for business during April, 1919, Guardian of estates, assignee, receiver, committee of is given below: estates of lunatics: National Bank of New Jersey, New Brunswick, N. J. National City Bank, New York City: Trustee, executor, administrator, registrar of stocks and Camaguey, Cuba, opened April 2, 1919 ; bonds, guardian of estates, assignee, receiver, committee Plaza Once, Buenos Aires, opened April 15, 1919. of estates of lunatics: National Bank of Ogdensburg, Ogdensburg, N. Y. Peekskill National Bank, Peekskill, N. Y. Acceptances to 100 Per Cent. DISTRICT NO. 3. Since the issue of the April BULLETIN the Trustee, executor, administrator, registrar of stocks and following banks have been authorized by the bonds, guardian of estates, assignee, receiver, committee of estates of lunatics: Federal Keserve Board to accept drafts and First National Bank, Milford, Del. bills of exchange up to 100 per cent of their National State Bank, Camden, N. J. capital and surplus: Clearfield National Bank, Cleariield, Pa. Penn National Bank, Philadelphia, Pa. Mercantile Trust & Deposit Co., New York, N. Y. Guardian of estates, assignee, receiver, committee of National Newark & Essex Banking Co., Newark, N. .1. estates of lunatics: Phoenix & Third National Bank, Lexington, Ky. Peoples National Bank, Laurel, Del. Liberty Bank. St. Louis, Mo. Second National Bank, Wilkes-Barre, Pa. DISTRICT NO. 6. Fiduciary Powers Granted to National Banks. Assignee and receiver: Calcasieu National Bank of Southwest Louisiana, The applications of the following banks for Lake Charles, La. permission to act under section ll(k) of the Trustee, executor, administrator, registrar of stocks and bonds, guardian of estates, assignee, receiver: Federal Eeserve Act have been approved by First National Bank of Acadia Parish, Crowley, La. the Federal Reserve Board during April: DISTRICT NO. 9. DISTRICT NO. 1. Trustee, executor, administrator, registrar of stocks and Trustee, executor, administrator, registrar of stocks and bonds, guardian of estates, assignee, receiver, committee bonds, guardian of estates, assignee, receiver, committee of estates of lunatics: of estates of lunatics: Western Montana National Bank, Missoula, Mont. Massasoit-Pocasset National Bank, Fall River, Mass. First National Bank, Grand Forks, N. Dak. Metacoiriet National Bank, Fall River, Mass. National Bank of Methuen, Methuen, Mass. DISTRICT NO. 10. Northampton National Bank, Northampton, Mass. National Mabaiwe Bank, Great Barrington, Mass. Trustee, executor, administrator, registrar of stocks and First National Bank, Provincetown, Mass. bonds, assignee, receiver: First National Bank, Concord, N. H. First National Bank, Loveland, Colo. Trustee, executor, administrator, assignee, receiver: Trustee, executor, administrator, registrar of stocks and Woburn National Bank, Woburn, Mass. bonds: Guardian of estates, assignee, receiver, committee of Farmers National Bank, Topeka, Kans. estates of lunatics: Agricultural National Bank, Pittsfield, Mass. DISTRICT NO. 12. Registrar of stocks and bonds, guardian of estates, assignee, receiver, committee of estates of lunatics: Trustee, executor, administrator, guardian of estates, Peoples National Bank, Barre, Vt. assignee, receiver, committee of estates of lunatics: Vermont National Bank, Brattleboro, Vt. First National Bank of Coos Bay, Marshfield, Oreg. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1,161ft. FEDERAL EESEBVE BULLETIN. 467 RULINGS OF THE FEDERAL RESERVE BOARD. Below are published rulings made by the that this section does not authorize the Federal Federal Reserve Board which are believed to Reserve Bank to collect maturing notes and be of interest to Federal Reserve Banks and bills payable within its own district which are member banks. forwarded to it for collection by any member bank located outside of its own district. This Collection Facilities of Federal Reserve Banks. service is limited to items sent to a Federal Under the provisions of section 13 of the Reserve Bank by its own member banks or by Federal Reserve Act a Federal Reserve Bank other Federal Reserve Banks. is authorized to receive from "any of its mem- Section 16 of the Federal Reserve Act, on ber banks * * * deposits of * * * checks and the other hand, authorizes a Federal Reserve drafts, payable upon presentation, and also, Bank to receive from any member bank, for collection, maturing notes and bills; or, regardless of its location, checks and drafts solely for purposes of exchange or of collection, drawn upon any member bank located in the may receive from other Federal Reserve Banks district of such Federal Reserve Bank. This, * * * checks and drafts payable upon presen- however, is the only collection service which a tation within its district, and maturing notes Federal Reserve Bank may perform directly and bills payable within its district." for any member bank located outside of its Under the provisions of this part of section 13 own district, and it does not authorize such it is clear that a Federal Reserve Bank may Federal Reserve Bank to collect for such memproperty receive from its own member banks ber banks maturing notes or bills or drafts for collection and credit when paid, maturing drawn upon firms, individuals, or corporations notes and bills, whether or not payable in its other than its own member banks even if they own district and drafts, with or without bills are payable in the district of the Federal of lading attached, payable upon presentation; Reserve Bank. whether or not payable in its own district. The Board believes that it is necessary for a Stamp tax on drafts drawn against shipments from the Federal Reserve Bank to render these services United States. to its own member banks in order to afford to Because of the constitutional restriction them the facilities which axe obviously contem- against taxes on exports, drafts which are plated by the law. drawn against shipments from the territorial It should be noted that the services out- United States, including the District of Columlined above relate solely to collections made bia, Hawaii, and Alaska, to foreign countries by a Federal Reserve Bank for its own member are not subject to stamp tax under provisions banks of items payable either within or without of the 1918 Revenue Act, even though accepted Its own district. Under the terms of section 13, or delivered or both accepted and delivered however, there is another kind of service which within the United States. Shipments from a Federal Reserve Bank is authorized to per- the territorial United States to the Canal Zone, form—that is, the collection of checks and Virgin Islands, Porto Rico, and the Philippines drafts payable upon presentation within the are not considered shipments to foreign coundistrict in which the Federal Reserve Bank is tries, but drafts against shipments to Porto located and the collection of maturing notes Rico, the Virgin Islands, and the Philippines and bills payable within that district when are exempt from stamp tax by express legislaforwarded to the Federal Reserve Bank by any tion even though such shipments are not other Federal Reserve Bank. It should be noted considered shipments to foreign countries. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

468 FEDERAL RESERVE BULLETIN. MAY 1, 1919. Substitution of security for acceptances in excess of 10 though the aggregate of acceptances for the per cent limit. same customer exceeds 10 per cent of its Section 13 of the Federal Reserve Act pro- capital and surplus. vides that no member bank shall accept, Generally speaking, the bill of lading drafts whether in a foreign or. domestic transaction, substituted for the original bills of lading are for any one person, company, firm, or corpor- drafts drawn on certain dealers and presented ation to an amount in excess of 10 per cent to the accepting bank for collection, the proof its capital and surplus, unless the bank is ceeds to be applied to the payment of the secured either by attached documents or by original acceptance. The Board believes that some other actual security flowing out of the this security is not only an actual security same transaction as the acceptances. The within the meaning of the act, but also that question often arises as to whether or not docu- it grows out of the same transaction as the ments issued under the following circumstances original acceptance and that, therefore, the constitute some other actual security within substitution may properly be made. the meaning of this section. A corporation ships goods consigned to its Inspection of goods covered by bill of lading drafts. own agent; it draws a time draft on its own An express provision in a bill of lading bank with the bills of lading attached; the authorizing the consignee to inspect the goods bank accepts, the acceptance being in excess before acceptance of the draft to which the of 10 per cent of its capital and surplus. The bill of lading is attached, does not affect the question is whether the bills of lading may be negotiability of the draft. released by the bank to the agent who is the consignee, provided that the agent substitutes [See opinion of General Counsel in Law Department, p. 472.] therefor other drafts secured by bills of lading covering the same goods which were being Acceptances covering domestic shipments of goods. shipped by the agent to various dealers. The A draft drawn upon a national bank cover- Board is of the opinion that the new drafts, ing current domestic shipments of goods is secured by bills of lading covering the same not eligible for acceptance by such bank under goods, do constitute some other actual security the provisions of section 13 of the Federal within the meaning of section 13, and that the Reserves Act, unless shipping documents are accepting bank may properly release the origi- attached at the time of acceptance. nal bills in favor of these other drafts, even [See opinion of General Counsel in Law Department, p. 471.J Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MAT 1,1910. FEDERAL RESERVE BULLETIN. 489 RULINGS OF THE DIVISION OF FOREIGN EXCHANGE. Following are rulings of the Division of serve Banks or the Division of Foreign Exchange applica- Foreign Exchange, Federal Reserve Board, tions for travelers' letters of credit in excess of $5,000, instructions to open commercial letters of credit or to make made under Executive order of January 26, transfers of funds for the purpose of purchasing commodi- 1918, and subsequent to the issuance of " Inties to be warehoused, or applications to open commercial structions to dealers" of January 26, 1918. credits for the purpose of exporting goods from one foreign The terms "person," "dealer," "correspond- country to another foreign country. The withdrawal of ent," "customer," and such other terms as these requirements does not remove the responsibility from "dealers" of taking proper declarations of nonenemy have a special meaning, are used in these rulinterest, nor from reporting to the Division of Foreign ings as prescribed in the Executive order Exchange before taking any action in case they have reaabove. son to believe that any transaction requested of them would, if carried out, be detrimental to the interests of the Change in regulations as to credits to foreign corre- United States. spondents. JANUARY 24, 1919. The regulation issued June 11, 1918, and reading as follows: Prohibition of ruble transactions. "'Dealers' having the accounts of foreign correspondents on their books are prohibited from accepting credits Until otherwise instructed the exportation or importato such accounts which are not accompanied by the name tion of Russian rubles, or the transfer of funds for their of the party making the original request that the deposit purchase by persons and dealers in the United States as be made, and by name of the party to whom the foreign institution receiving the credit is to pay the funds, and for described under the Executive order of the President of whose account such payment is made, and the purpose of January 26, 1918, is prohibited. the deposit must also be stated. It is important that this order be noted by all bankers, individuals or others in the FEBRUARY 14, 1919. United States without regard to whether they are' dealers' or not. This information will be required in addition to the regular customers' statement. Lira exchange. "Deposits received for the credit of dollar accounts of American restrictions removed.—All restrictions as to the foreign correspondents on the books of American'dealers' sale or purchase of lira exchange by "dealers," as defrom * persons,' as defined in the Executive order, outside scribed under tke Executive order of the President of of the United States must bear the same information, and 'dealers' should notify their foreign correspondents that January 26, 1918, are hereby removed until otherwise when arranging to have deposits made in this country for instructed. their account that such information must follow the deposit." MARCH 21, 1919. Has been amended to the following extent: Italian Government regulations in force.—The Institute "Until otherwise instructed the above regulation is hereby withdrawn in so far as it applies to advices follow- dei Cambi in Italy, which has charge of the Italian exing the deposits to 'dealers,7 but 'dealers' accepting such changes in that country under the supervision of the Italdeposits are still required to demand customers' state- ian Government, has not yet withdrawn any of its regulaments from those making the deposits who may not be 'dealers/ !? tions, and until it does so it is necessary for American dealers in carrying out their transactions in Italy to op- JANUARY 13, 1919. erate in accordance with the rules of the Italian Institute of Exchange. Such rules do not affect the buying or Forms 1~K, 1-KA not required. selling of lires by dealers in the United States, but the Until otherwise instructed "dealers," as defined under buying or selling of dollars in Italy are entirely subject to the Executive order of the President of January 26, 1918, the rules of the institute. The* institute in New York will not be required to make commodity reports to the will be in the market to buy or sell lires as it is considered Division of Foreign Exchange on Forms 1-K and 1-KA. advisable, but at the moment is not selling cable lire under 6.45. JANUARY 24, 1919. MARCH 22, 1919. Removal of restrictions on letters of credit. Until further notice "dealers," as defined under the Transfers of funds. Executive order of the President of January 26, 1918, will Commencing with the dates indicated and until othernot be required to present for approval to the Federal Ee- wise instructed. " dealers " as denned under the Executive Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

470 FEDERAL RESERVE BULLETIN. 1919. order of the President of January 26, 1918, have been Purchases of exchange from American Relief Adminisauthorized to make transfers of funds to persons not tration. enemies or allies of enemies residing in the following Until otherwise instructed, "dealers" as defined under countries, territories, or provinces: the Executive order of the President of January 28, 1918, November 30, 1918.—Belgium and Alsace Lorraine, are hereby prohibited from purchasing exchange except provided such remittances are made in Belgian or French from, the American Relief Administration, 115 Broadway, francs. New York City, upon any of the following countries: Fin- February 3, 1919.—Syria and Mesopotamia. land, Poland, Czechoslovakia, German-Austria. Jugoslavia, February 4, 1919.—Roumania, Serbia, and territory Serbia, Roumania, Bulgaria, Turkey. It will also be included in the line set out in article 3 of the military necessary for such "dealers" to make arrangements direct clause of the armistice protocol of November 3, 1918, with the American Relief Administration in order to make which is covered by the following extract from article 3: remittances to such countries. •'From Pic Umbrail to the north of the Stelvic it will This regulation is issued for the purpose of enabling the follow the crest of the Rhetian Alps up to the sources of American Relief Administration to make use of such the Adige and the Eisach, passing thence by Mounts foreign currencies in the countries concerned as are Reschon and Brenner and the heights of Oetz and Zoaller. received by it for food being shipped. Full details as to The line thence turns south, crossing Mount Toblach and meeting the present frontier Oarnic Alps. It follows this how remittances may be carried out can be obtained from frontier up to Mount Tarvis and after Mount Tarvis the the American Relief Administration, 115 Broadway. New watershed of the Julian Alps by the Col of Predil, Mount York City. Mangart, the Tricorno (Terglou), and the watershed of Dealers who carry out their foreign exchange transactions the Cols di Podberdo, Podlamscan, and Idria. From this point the line turns southeast toward the Schneeberg, through metropolitan correspondents must apply direct to excludes the whole basin of the Save and its tributaries. such correspondents for information and not to the Ameri- From Schneeberg it goes down toward the coast in such a can Relief Administration. The system which has been way as to include Castua, Mattuglia, and Volosca, in the devised, while making possible the accomplishment of evacuated territories. remittances desired, will at the same time be of great "It will also follow the administrative limits of the present Province of Dalmatia, including to the north service in getting food into the territory described. Lisarica and Trivania and to the south territory limited APRIL 22, 1919. by a line from the (Semigrand?) of Cape Planca to the summits of the watershed eastward, so as to include in Confirmations of incoming cablegrams revoked. the evacuated area all the valleys and water courses flowing toward Sebenico, such as the Circola, Kerka. Butisnica^ Until otherwise instructed, the requirement issued by and their tributaries. It will also include all the islands the Division of Foreign Exchange on June 11, 1918, proin the north and west of Dalmatia from Promuda, Solvo. hibiting "dealers,"as defined under the Executive order Ulbo, Scherda, Maon, Pago, and Puntadura in the north of the President of January 26, 1918, from acting upon up to Moleda in the south, embracing Santandres, Busi, confirmations of cablegrams received by them where the Liza. Lasina, Tercela, Cursola, Cazza, and Langusta, as well as the neighboring rocks and islets and passages, only original cablegram in part or in whole has never been excepting the Islands of Great and Small Zirona, Bua. delivered, and also requiring that all confirmations of >"olta, and Brazza.'"' cablegrams be delivered to certain Federal Reserve Banks, dependent upon their destinations, is hereby re- February 10, 1919.—Finland. voked, with the exception of confirmations referring to February 14, 1919.—Bohemia and Moravia, as existing any cablegrams which might cover transactions either r;ii August 1, 1914. These Provinces are at present under directly or indirectly with territory not formally opened control of the Czecho-Slovak National Council. to trade and transfers of funds. February 17, 1919.—Bulgaria, Turkey in Asia. Turkey APRIL 29., 1919. in Europe, and all Black Sea ports. February 24, 1919.—Colonies owned or controlled by Transfers oi* funds to Germany. Germany on August 1, 1914. The War Trade Board, at the request of the Supreme March 3, 1919.—Adriatic ports, including all territory Economic Council, has issued a general license through adjacent thereto under the military occupation of the the Bureau of Enemy Trade, which authorizes the transfer Associated Governments, Albania and Montenegro. of funds to Germany, provided the proceeds are used for March 6, 1919.—Grand Duchy of Luxemburg and that the purchase of food to be shipped to Germany, and until part of Germany bordering upon the Rhine occupied by otherwise instructed, "dealers.;'as defined under the troops of the allies. Executive order of the President of January 26. 1918, March 20, 1919.—Croatia, Slavonia. Bosnia, Herzego- are permitted to make transfers of funds to Germany vina, and Dalmatia. through the American Relief Administration, in accord- April 1, 1919.—Esthonia, Poland, and the Austrian- ance with regulations issued April 22. 1919, covering the Hungarian Monarchy as it existed previous to August 1, making of similar remittances to various other Central 1914, with the exception of Hungary. European countries. April 16, 1919.—Lithuania and Latvia. APRIL 30, 1919. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MAY 1,1919. FEDEBAL RESERVE BULLETIBT. 471 LAW DEPARTMENT. The following opinions of General Counsel In the case of drafts growing out of transhave been authorized for publication by the actions involving the exportation or importa- Board since the last edition of the BULLETIN: tion of goods, the law is very much more liberal and authorizes the acceptance whether Acceptances covering domestic shipments of goods. or not shipping documents are attached A draft drawn upon a national bank covering current at the time of acceptance. In the ease of domestic shipments of goods is not eligible for acceptance foreign transactions, therefore, if the acby such bank under the provisions of section 13 of the Federal Keserve Act unless shipping documents are cepting bank is reasonably satisfied that the attached at the time of acceptance. draft actually grows out of a transaction involving the exportation or importation of APRIL 29, 1919. The attached letter raises the question goods, it is eligible for acceptance whether whether a national bank may accept a draft or not the exportation or importation had drawn upon it by a fruit growers' association actually commenced at the time of acceptcovering the shipment of fruit from California ance and regardless of whether or not shipto various parts of the United States if the draft ping documents were attached at the time is not secured by shipping documents at the of acceptance. If the acceptance grows out of time of acceptance. a transaction involving domestic shipments of goods, however, the bank has no option Section 13 of the Federal Reserve Act proin the matter and should not accept any vides in part that— such draft which is not secured by the "Any member bank may accept drafts or appropriate shipping documents at the time bills of exchange drawn upon it * * * of acceptance. which grow out of transactions involving the domestic shipment of goods, provided ship- In this connection there is an opinion ping documents conveying or securing title printed on page 765 of the October, 1917, are attached at the time of acceptance/7 BULLETIN to the effect that that provision It is clear that the intention of Congress of section 13 which authorizes any member was strictly to limit the acceptance of drafts bank to accept drafts based upon the domestic growing out of transactions involving the shipment of goods, provided shipping docudomestic shipment of goods and in order to ments are "attached," should not be coninsure compliance with this requirement it strued so as to require that the documents was expressly provided that the drafts be be physically fastened to the draft. It is secured at the time of acceptance by the sufficient if the accepting bank has possession shipping documents conveying or securing of the documents and a lien on the goods title to the goods involved in the transaction represented by such documents at the time which the acceptance is to finance. Under of acceptance. In the case under considerathe terms of the law, therefore, it does not tion, however, it is intended to accept drafts seem that a draft drawn by the fruit growers' even before the bills of lading covering the association is eligible for acceptap.ee by a shipments which they are to finance have member bank even if drawn to finance the been issued so that it is impossible for the prodomestic shipment of goods unless the ship- visions of the law which require shipping docuping documents are attached at the time of ments to be attached at the time of acceptance acceptance. to be complied with. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

472 FEDERAL RESERVE BULLETIN. MAY I, 1919. Inspection of goods covered by bill of lading drafts. issued by the War Finance Corporation, the An express provision in a bill of lading authorizing the principal of which does not exceed $5,000, are consignee to inspect the goods before acceptance of the "inadmissible assets" under the provisions of draft to which the bill of lading is attached does not section 325 of the revenue act of 1918, but affect the negotiability of the draft. that bonds of the War Finance Corporation the APRIL 19, 1919. principal of which exceeds $5,000 are admis- The question has been asked whether there sible assets within the meaning of that act. is any impropriety in placing in a bill of lading a provision allowing an inspection of the goods TREASURY DEPARTMENT, covered by the bill of lading before the con- COMMISSIONER OP INTERNAL REVENUE, signee of the goods accepts the draft to which Washington, April 18, 1919. the bill of lading is attached. SIR: I have the honor to acknowledge receipt of your letter of April 10, 1919, requesting to be advised whether Under the provisions of the negotiable inthe 5 per cent bonds of the War Finance Corporation are struments law, the drawee of a draft is allowed inadmissible assets under the provisions of section 325 of 24 hours after presentment in which to deter- the revenue act of 1918. mine whether or not he will accept, so that any The term "inadmissible assets" is defined in the aforesaid section of the act to mean "stocks, bonds, and other delay in accepting which does not exceed.24 hours obligations (other than obligations of the United States) would not necessitate protest for nonacceptance. and dividends the interest from which is not included in This would give the drawee of the draft a rea- computing net income." Section 213 (b) of the act prosonable time in which to avail himself of the vides that the interest on bonds issued by the War Finance opportunity offered by the shipper to inspect Corporation shall be exempt from taxation to the extent provided in the act authorizing the issue of such bonds; the goods before accepting the draft. In any and it is provided in section 16 of the War Finance Corporaevent, a provision in the bill of lading authortion act that the bonds issued by the War Finance Corporaizing the inspection of the goods could not in tion shall be exempt, both as to principal and interest, any way affect the negotiability of the draft to from all taxes except estate and inheritance taxes, and which the bill of lading is attached. There also from graduated additional income, excess profits and war profits taxes on the interest on an amount of such bonds does not appear, therefore, to be any reason the principal of which does not exceed $5,000. Under the why a shipper of goods should not in the bill terms of section 17 of the War Finance Corporation act such of lading expressly authorize the consignee of bonds are not obligations of the United States. those goods to make an inspection before ac- It is accordingly held that the bonds of the War Finance cepting the draft to which the bill of lading is Corporation, the principal of which does not exceed $5,000, attached. are inadmissible assets. Bonds of the War Finance Corporation, the principal of which exceeds $5,000, are ad- War Finance Corporation bonds as "inadmissible assets" Respectfully, within meaning of revenue act of 1918. J. H. CALLOW, The following letter from the Acting Com- Acting Commissioner missioner of Internal Revenue rules that bonds Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

AT 1,1919. FEDERAL. RESERVE BULLETIN. 473 BANKS TRANSACTIONS DURING MARCH- to individual account amounting to nearly APRIL. 16 per cent. For the week ending April 2 the Debits to individual account reported by total increased to 7,734 millions, the larger clearing-house banks in 151 leading cities for figure reflecting apparently dividend and interthe five weeks ending April 23 averaged 7,392.8 est payments made at the close of the quarter. millions, or slightly in excess of the average Another increase, bringing the total beyond for the preceding four weeks. Following the the 8 billion mark, is recorded for the week week ending March 19 when as the result of ending April 16 preceding the Easter holidays. ; large income-tax payments total debits to Debits to bank account follow a more even individual account ran in excess of 8 billions, course, with a maximum total for the week the week ending March 26 brought a consider- ending April 16, and a minimum for the folable reaction, the shrinkage in the total debits lowing week. Weekly figures of clearing-house bank debits to deposit accounts. [In thousands of dollars; i. e., 000 omitted.] Debits to individual account. Debits to banks-' and bankers' account. District. Mar. 26. j Apr. 2. Apr. 9. ; Apr. 16. Apr. 2. Apr. 9. Apr. 23. i ' No. 1—Boston: ! Bancor i 2,217 2,578 2,565 2,715 2,379 337 274 305 Boston 230,188 258.664 213,759 258,310 219,335 175,424 185,781 174,572 186, 173,199 Fall River j 7,612 6; 338 5,802 6,236 5,826 I 245 270 327 315 Hartford I 16,187 19,741 22,686 21,592 19,314 I 1,301 1,644 1,646 1, 1,339 Holyoke ! 2,924 2,771 2,608 2,724 2,439 ! 470 505 346 517 Lowell ! 4,043 4.773 4,035 4,584 3,526 ! 276 238 398 360 New Bedford ; 5,685 5; 060 4,860 7,425 6,510 j 154 88 342 357 New Haven | 13,628 17,545 14,811 20,995 14,758 ! 682 578 643 295 Providence i 26,961 28,282 25,392 28,600 32,146 i 1,441 1,362 1,503 1,436 Springfield I 13,745 14,118 13,602 14,227 9,369 i 610 314 811 317 Waterbury I 5,921 5,549 5,865 7,655 5,920 : 481 452 , 759 482 Worcester '' 15,386 15,837 11,986 12,900 12,274 1 1,141 2,019 ! 1,176 1, 1,234 No. 2—New York: Albany '. 15,756 20,711 20,508 20,707 23,621 ! 11,409 13,489 I 10,843 10,643 11,234 Binghamton ! 2,458 2,989 2,829 3,214 3,928 j Buffalo I 47,644 68,028 54,477 52,979 60,398 ! 8,380 9,341 j 8,793 10,157 10,937 New York 3,409,070 4,084,229 3,846,617 4,316,299 3,668,540 jl,602,128 1,707,913 11,696,601 1,684,487 1,507,762 Passaic j 2,542 2,817 3,298 3 485 3,291 I 247 215 288 349 336 Rochester ! 20,839 26,693 28,714 26,544 24,739 I 568 582 732 558 532 Syracuse ! 9,720 14,201 12,497 10,817 12,162 j 513 565 556 574 628 No. 3—Philadelphia: Altoona 2,822 2,363 2,519 2,657 2,361 Chester 4,580 4,561 3,826 3,938 3,719 21 276 76 486 326 Harrisburg 3,114 3,260 4,029 3,718 3,864 2 18 200 9 1 Johnstown i 2,633 2,931 3,068 2,762 2,744 177 122 111 162 213 Lancaster | 4,422 10,451 6,748 5,118 4,504 208 79 227 112 206 Philadelphia I 289,971 337,045 273,149 281,702 275,049 1,976 354,161 309,856 364,412 303,183 Reading j 3,726 4,272 4,255 3,000 3,859 Scranton I 11,779 11,784 11,102 9,357 11,052 1,771 1,824 1,613 1,859 : 1,752 Trenton | 8,015 8,247 8,775 i 7,999 8,503 167 166 244 181 j 292 Wilkes-Barre 5,743 6,509 5,752 i 5,840 5.237 64 59 81 114 Wi 11 iam spor t ! 3,25S 3,033 3,182 ! 3,017 3; 491 947 931 632 1,146 Wilmington i 7,704 8; 676 8,069 ! 8,607 I 9,255 York i 3,4S9 5,084 4,205 | 3,421 I 3,483 127 868 741 •: 685 720 No. 4—Cleveland: ; Akron I 16,600 17.434 17,475 ! 12,476 ;. 107 611 92 185 Cincinnati j 45,5SS 56; 856 51,837 | 71,200 ! 45,837 40,947 40,167 39,623 42,550 39,273 Cleveland ; 128,679 148,400 133,680 j184,727 i 124,736 99,788 99,826 96,318 115,926 100,617 Columbus j 23', 079 25,351 26,935 i 31,498 i 26,810 3,564 5,740 5,943 5,030 5,878 Dayton ! 10;i27 12,714 M,634 ' 10,702 ! 5,874 572 729 648 519 628 Erlie ; 6,054 7,614 5,777 5,969 i 6,013 60 78 76 98 Grecnsburg. Pa j 1,976 1,068 2,160 1,976 i 1,748 Lexington - | 6,450 5,526 4,590 4,653 i 4,501 3,870 I 2,770 2,368 : 2,608 2,465 Oil City ! 2,468 2,3(50 2,646 ! 2,601 i 2,998 2,328 I 2,454 2,598 •: 2,339 2,533 Pittsburgh I 187,673 159,207 138,667 I 150,534 i 175,173 311,809 i 274.593 289,753 i"258,692 302,804 Springfield ; 2,419 3,223 3,289 j 3,823 i 2,489 1,951 { 2; 111 1,872 : 2; 323 2,151 Toledo ' 23; 535 27,335 21.988 ! 33.517 , 25,306 7,495 ! 8,517 10,553 8,461 "Wheeling i 6.670 7,771 6', 551 i 7; 614 7,627 5.926 ! 6,225 4,769 ; 6,592 6,44.8 Youngstovv-n ' 14,018 11,034 13; 356 •• 17,103 j 9,408 '381 j '592 619 ! 776 1,492 No. 5—Richmond: I Baltimore i 66,357 80,533 73,186 1 74,695 ! 73,071 ! 34,408 : 43,823 38,872 • 34,006 33,320 Charleston i 6,745 7,040 8', 077 ! 7,196 '' 7,147 ! 3,374 ' 3,087 2', 977 : 3,343 3,165 Charlotte • 3,800 3,100 3,800 i 5,100 ! 5,100 ! 4,100 ! 3,400 8.600 ! 7,500 9,500 Columbia ! 6,490 6,689 6,256 ! 5,876 i 5,386 ! 3,175 I 3,256 3,275 ; 2,791 2,875 Norfolk ! 16,248 17,104 16,764 : 18,303 1 18,577 i 18,614 ! 20,409 22,573-' 21,144 23,287 Raleigh ! 3,400 4,626 j 10,000 I 3,800 1 5,400 ! 2,850 ; 6,211 3,500 I .2,900 3,200 Richmond ', 18. MA 22,121 ! 21,700 i 21,763 i 23,856 I 57,653 : 56,270 44,335 :• 48,100 50,081 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

474 FEDERAL RESERVE BULLETIN. MAY I. 1919, Weekly figures of clearing-house bank debits to deposit accounts—Continued. [In thousands of dollars; i. e., 000 omitted.] Debits to individual accounts. Debits to banks7 and bankers' account. District. Mar. 26. Apr. 16. I Apr. 23. Mar. 26. j Apr. 2. • Apr. 9. j Apr. 16.Apr. 23. j , No. 6—Atlanta: Atlanta. 20,454 23,427 22,490 23,760 22,884 27,379 23,251 ! 24,033 I 23,466 26,001 Augusta 6,257 5,267 5,291 5,727 5,833 2,958 2,127 | 2,164 ' 2,256 2,512 Birmingham.. 12,175 12,249 11,993 9,082 11,055 4,141 3,739 4,414 5,089 6,169 Chattanooga.. 8,339 7,563 7,164 9,851 8,426 4,439 3,685 3,608 4,783 4,804 Jacksonville.. 9,443 12,715 10,685 13,990 8,982 9,828 9,118 i 9,111 9,559 8,781 Knoxville 4,650 5,103 5,384 5,628 5,448 1,396 ' 1,708 1,545 1,560 Macon 5,084 7,237 5,298 5,398 5,483 8* 691 7,016 10,114 9,603 10,172 Mobile.. 6,073 6,568 6,679 6,336 6,093 917 710 781 978 906 Montgomery 3,973 4,468 4,463 5,897 4,427 867 909 1,044 1,450 1,149 Nashville 20,326 18,020 23,356 22,256 22,009 16,619 15,350 18,673 22,492 16,408 Now Orleans 49,099 53,892 59,900! 56,196 53,073 34,630 32,011 | 32,620 31,711 j 34,704 Pensacola 1,772 2,042 1,999 2,043 1,748 1,111 883 I 1 ~" 806 ' 740 Savannah 12,150 14,455 11,107 11,283 11,481 7,373 6,892 I 7,340 7,838 V Ta ic m ks p b a urg 4 1 , ,7 8 1 3 3 0 4 1 , ,5 9 4 2 9 5 4 1 , , 7 67 6 9 8 5 2, , 0 6 9 0 0 4 4 1 , , 9 81 4 3 6 3, 1 1 7 7 6 5 ' 3,17405 II 3, 1 31 1 2 9 3,4 8 0 7 0 3,1 5 1 1 0 No. 7—Chicago: 3ay City 2,233 2,030 2,354 2,569 2,370 524 399 654 437 350 Bloomington 2,582 2,843 3,021 3,064 2,970 837 784 1,021 1,269 1,095 Cedar Rapids 4,523 6,122 5,499 2,768 4,743 10,170 9,279 10,536 12,159 ! 9,276 Chicago 573,793 550,649 574,967 570,197 558,079 564,953 520,546 579,689 603,596 579,328 Davenport 5,446 7,014 7,108 j 5,704 6,933 1,579 2,026 2,353 2,455 1,880 Decatur 3,010 3,782 3,147 3,535 3,314 473 533 632 733 526 Des Moines 18,171 16,815 18,703 ; 17,225 18,050 36,723 35,253 40,227 34,285 33,714 Detroit 93,294 96,480 80,370 i 110,632 106,717 49,597 40,572 39,799 53,539 50,570 Dubuque 1,773 1,913 2,027 j 1,939 2,302 1,682 1,960 1,386 1,348 Flint. 8,583 5,519 7,060 i 4,839 . 8,766 37 40 36 34 Fort "Wayne 4,375 4,299 4,811 i 5,006 4,570 1,670 1,496 2,175 1,097 2,049 Grand Rapids 12,348 18,373 12,938 i 14,470 14,279 3,847 3,931 4,054 4,088 4,011 Indianapolis 25,563 27,633 26,412 I 31,745 28,295 21,918 20,764 23,162 23,663 24,064 Jackson 3,030 3,389 j 4,253 3,566 74 78 97 15 Kalamazoo 2,848 2,730 2,743 j 3,196 3,326 552 414 611 525 541 Lansing 3,379 4,081 3,995 4,058 4,313 286 178 157 242 199 Milwaukee 45,713 46,394 46,777 | 53,861 44,244 32,490 30,031 32,500 33,400 28,463 Pooria 10,035 9,687 10.439 ! 12,494 9,718 2,347 2,162 2,564 2,902 2,404 Rockford, 111 4,942 5,309 4,956 4,743 3,820 194 186 158 332 375 Sioux City 15,151 14,362 12,881 14,247 13,421 14,660 15,888 15,562 13,549 11,522 South Bend 2,646 3,143 3,646 3,547 2,863 1,562 2,422 2,065 1,748 1,719 Springfield 4,567 4,591 4,954 ! 4,750 1,687 1,158 2,109 2,744 1,815 Waterloo, Iowa 2,851 3,973 3,314 I 2,959 j 3,238 1,336 1,345 1,830 1,544 1,151 No. 8—St. Louis: Evansville 3,691 4,076 4,522 j 5,655 3,994 2,643 2,072 1,801 1,687 2,596 Little Rock 6,793 6,475 7 927 8,506 7,363 5,494 5,197 6,174 6,000 Louisville 32,806 34,518 33.440 i 33,830 34,527 41,020 34,019 33,164 35,943 33,589 Memphis 23,489 23,951 23,924 ! 25,954 32,255 22,231 21,586 22,521 22,935 24,422 St. Louis 110,801 115,795 131,675 j 133,782 126,023 123,997 110,164 131,763 128,382 118,692 No, 9—Minneapolis: Aberdeen 1,185 1,523 i 1,438 ; 1,398 1,489 1,079 911 1,051 1,002 Billings 1,913 2,354 I 2,602 ! 2,517 2,036 1,032 914 1,052 997 994 Duluth 11,956 19,256 ! 14 671 I 20,288 23,944 3,811 3,602 3,705 5,597 3,765 Fargo 2,579 1,646 i 2,633 1,891 2,G36 2,332 2,443 2,325 1,506 2,279 Grand Forks 1,170 1,295 : 1,475 I 1,401 1,202 i 940 1,321 1,340 1,161 1,129 Great Falls 1,971 2,248 ! 2,497 2,701 2,197 I 2,649 3,124 2,944 3,217 2,811 Helena 1,922 2,102 ! 2,569 ! 2,019 2,175 I 3,241 2,923 3,298 3,426 3,339 Minneapolis 77,285 98,812 ! 72,526 j 82,995 67,017! 66,549 70,444 75,375 49,201 65,775 St. Paui 29,864 39,033 I 36,020 i 30,859 30,912 39,065 41,078 43,138 39,757 35,126 Superior 1,324 1,887 i 1,692 i 1,853 1,998 57 173 157 193 107 Winona 820 1,064 ! 1,235 i 947 959 1,115 1,082 905 No. IO-7-Kansas City: Atchison.: 1 1,026 ! 926 I 1,012 913 655 579 641 641 Bartlcsville, Okla... 1,941 2,237 2,083 j 2,689 74 33 85 140 Colorado Springs 2,151 i 2,153 2,246 I 2,382 2,534 691 943 609 | 1,071 824 Denver 27,059 I 33,528 31,362 ! 28,834 32,069 22,716 19,629 22,727 I 21,781 22,879 Joplin 3,168 I 2.728 2,760 I 3,399 3,044 601 665 566 I 505 414 Kansas City, Kans.. 2,933 3; 080 3,009 I 2,829 3,301 5,197 4,966 5,101 i 5,588 4,634 Kansas City, Mo 77,390 I 83,859 86,703 I 88,284 87,161 171,636 160,317 155,187 I 175,955 162,887 Muskogce, Okla 3,237 I 3,360 3 487 ' 3,431 3,095 1,935 1,986 2,419 i 2,095 1,924 Oklahoma City 10,928 ! 11,559 13,835 13,175 12,713 9,618 9,070 9,694 ! 9,977 8,980 Omaha 64,776 i 65,632 51,500 59,062 52,694 70,646 61,088 77,501 65,377 56,710 Pueblo 3,471 I 3,278 3,071 4,952 3,592 '905 829 693 1,088 945 St. Joseph 17,525 i 16,676 18,819 19,789 19,679 17,660 17,635 17,371 16,580 15,964 Topeka 4,427 I 4,981 4,731 4,820 4,286 1,629 1,614 1,651 1,999 1,664 Tulsa 19,053 I 20,082 15,666 20,349 16,672 8,399 9,177 8,061 8,380 8,494 Wichita 6,590 I 9,010 7,829 9,119 8,567 14,461 12,579 12,123 12,848 12,493 No. 11—Dallas: Albuquerque 1,250 1,585 1,556 1,510 1,400 3,810 3,590 4,008 3,656 3,949 Austin 2,980 3,600 2,797 2,930 2,646 7,850 2,186 2,738 2,490 1,936 Beaumont 4,517 3.436 3,558 3,606 3,592 573 479 600 622 545 Dallas 26,437 25,567 27,790 28,835 31,472 45,425 43,147 41,057 48,630 44,947 El Paso 5,852 7,003 6,652 6,542 6,052 8,269 8,060 7,922 8,462 7,930 Fort Worth 14,937 16,604 17,359 16,578 16,385 35,966 43,179 35,919 37,012 35,762 Gal vest on 4,860 5,973 5,801 i 6,011 5,423 4,473 5,997 I 5,286 4,584 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MAY 1, 1919. FEDERAL. RESERVE BULLETIN. 475 Weekly figures of clearing-house bank debits to deposit accounts—Continued. [In thousands of dollars; i. e., 000 omitted.) Debits to individual account. Debits to banks' and bankers' account. 'District. Mar. 26. Apr. 2 j Apr. 9. Apr. 16. j Apr. 26. Mar. 26. Apr. 2. Apr. 9. \ Apr. 16. Apr. 23 No. M.—Dallas—Continued. Houston 20,441 22,445 20,752 24,217 26,213 42,067 44,049 41,233 43,898 44,004 San Antonio 1 5,761 1 5,896 16,645 16,673 1 5,420 Shreveport 5,938 5,386 4,546 4,898 4,811 ""3,*87i" 3,493 3,665 3,737 3,153 Texarkana 1,293 1,476 ],42i 1,772 1,223 224 286 290 369 318 Tucson 1,639 1,531 1,822 1,618 1,705 1,273 1,212 1,516 1,344 1,463 Waco 2,674 2,509 2; 919 3,120 2,495 1,833 1,470 1,567 1,709 1,554 .No. 12—San Francisco: Boise 1,942 2,117 2,335 2,931 2,224 5,285 9,958 6,721 5,308 5,952 Fresno 6,058 5,488 5,502 6,597 5,826 3,803 3,233 2,873 3,117 3,219 Long Beach 2,506 3,229 3,523 3,177 2,789 97 184 185 232 31 Los Angeles 59,936 63,486 58,763 60,855 65,156 40,827 41,392 39,867 47,012 42,337 Oakland 13,269 12,541 12,895 12,725 12,594 2,068 2,214 2,600 2,802 2,581 Ogden 4,486 4.398 4,340 4,339 4,636 4,804 5,259 5,730 5,114 6080 Pasadena 2,744 2,599 3,196 3,293 3,057 343 144 184 694 111 Portland 31,502 35,934 30,002 41,048 41,958 22,648 21,612 I 20,888 26,549 26,818 Reno 1,743 2,363 2,534 2,331 2,299 1,487 1,951 2,398 1,905 1,713 Sacramento 9,777 10,780 12,292 j 12,348 9,017 3,815 3,804 4,115 4,939 4,363 Salt Lake City 12,555 14,870 13,173 i 13,686 14,932 16,232 17,591 17,115 15.979 16,760 San Diego 4,262 3,202 4,563 j 2,979 3,371 . 262 364 394 '499 328 San Francisco 135,834 146,478 132,552 i 146,336 131,490 105,622 90,714 97,896 109,433 98,800 San Jose 3,291 3; 662 3,561 i 3,884 ; 3,332 . 1,597 1,746 2,370 1,830 1,970 Seattle 49,403 38,945 i 37,110 j 47,001 j 41,297 15,821 20,927 14,364 17,895 18,957 Spokane 8,366 8 372 ! 8,620 ! 10,211 8,940 7,479 6,955 7,240 7,980 Stockton 3,847 4,176 ' 4,123 ! 5 354 ! 4,886 2,230 2,535 3,578 5,032 Tacoma 11,627 9 238 9,468 ! 11,165 ] 12,347 6,355 8,078 7,359 7,312 8,722 Yalnma 2,046 2,141 2,287 ! 2,333 i 2,298 287 241 220 223 1 Figures comprise debits to individual as well as to banks' and bankers' accounts. Recapitulation, showing figures for clearing-house centers reporting for each of the five weeks. fin thousands of dollars; i. e., 000 omitted. J ! Number Debits to individual account. Debits to banks' and bankers' account. of T>isiric't. i centers 'included. Mar. 26. i Apr. 2. Apr. 9. I Apr. 16.Apr. 23. Mar. 26. Apr. 2. Apr. 9. i Apr. 16. Apr. 23, I No. 1—Boston 344,497 381.256 327,971 ! 387,963 333,796 182,562 193,525 182,915 194,109 180,156 No. 2—New York 3,508,029 4,219; 6683,968,94014,434,045 3,796,679 1,623,2451,732.105 1,717,813 .,706,768 1,531,429 Mo. S—Philadelphia... 351,256 408,216 338,679 I 341,136 337,121 364,460 358,504 313,781 368,862 307,953 No. 4—Cleveland 458,736 469,365 423,110 i 525,917 438,520 478,691 443,802 453,270 448,006 472,807 No. 5—Richmond 121,584 141,213 139,783 j 136,733 138,537 124,174 136,456 124,132 119,784 125,428 No. 6—Atlanta 166,338 179,480 182,256 ! 185,141 173,501 123,890 110,282 121,295 124,565 124,905 No. 7—Chicago 847:776 840,772 842,122 ! 878,658 851,081 749,125 691,367 763,280 795,538 756,434 Xo. 8—St. Louis 177,580 184,815 201,488 I 207,727 204,162 195,385 173,038 195,342 195,121 185,299 No. 9—Minneapolis... 131,989 171,220 139,358 i 148,869 136,534 121,714 127,915 135,500 107 139 117,284 No. 10—Kansas City.. 243,517 260,952 245,944 I 261,437 250,320 326,949 301,077 314,400 323,885 299,453 No. 11—Dallas 98,579 103,011 103,955 i 108 100 109,485 156,584 155,624 146,512 157,215 150,145 No. 12—San Francisco 365,194 374,019 350,839 372,449 240,958 238,918 236,118 263,852 249,642 Grand total 151 5,815,075 |7,733,987 7,264,445 18,008,319 7,142,185 4,687,737 \4,662,613 4,704,358 4,804,844 4,500,935 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

476 FEDERAL RESERVE BULLETIN. MAY 1, 1919. WHOLESALE PRICES IN VARIOUS the United States Bureau of Labor Statistics COUNTRIES. about 280, and the French Statistique Generaie 45, to mention several cases. When a smaller In the accompanying tables there are prelist of commodities is chosen, there is a tensented various index numbers of wholesale dency to include only articles in their raw or prices for the United States, Great Britain, semimanufactured state, and previous studies Canada, Australia, France, Italy, and Japan. have shown that the prices of such commodi- In the first table, for which the Board is inties on the whole show wider oscillations than debted to the United States Bureau of Labor those of manufactured goods. Moreover, such Statistics, the numbers have been shifted to numbers on the whole will also have a larger the 1913 base. In making the shift the average representation of producers7 goods, the prices for the year 1913 shown by the original comof which are less steady than those of conpilers was taken as 100, and index numbers sumers7 goods. While series constructed in for the period were restated in terms of the this manner will be more sensitive than those new base by dividing these numbers by the embracing a larger list of commodities, on the original index number for the year 1913. other hand, to measure the changes in whole- In the case of certain of the numbers, due sale prices at large, it is evident that samples to the technical methods employed in their must be drawn for all the various groups of construction, the results obtained by shifting commodities that behave in peculiar ways. the base in this manner are only approxi- Differences in weighting, that is, in the relative mately accurate. In the second table the importance assigned to various groups of comindex numbers cover the period since Janumodities, and individual commodities within ary, 1918, and are shown in their original form, the group, also have great influence upon the different bases being employed by the several final results. Here again there is great divercompilers. sity. An exact system, of weights based on It will be apparent that the increase in prices some definite criterion may be employed, or, in the United States on the whole has been less than in Great Britain, in which the increase in on the other hand, no formal weighting may be turn has been less than in France and Italy. attempted. Dun's index number is weighted No exact measurement of the relative increase by per capita consumption, Bradstreet's by in prices in one country as compared with including several quotations for each of the another is, however, possible, as the methods more important articles; but the latter is employed in the construction of the index vitiated in considerable measure by the renumbers shown differ greatly. It will be duction of original quotations to prices per observed that the various numbers shown for pound, thus assigning to some high-priced the United States and for Great Britain also articles excessive influence upon the final differ widely from each other. The differences results. For index numbers comprising a are due to various causes, chief among which smaller list of commodities the favorite method are the number and kind of commodities in- is by including several quotations for the more cluded. Bradstroets include 96 commodities, [important articles. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MAY 1, 1919. FEDERAL RESERVE BULLETIN. 477 Wholesale prices in the United States and certain foreign countries. [Index numbers expressed as percentages of the index number for 1913.] United States. United Kingdom. ! Canada. ! Australia. France. ! New , South 1 Bureau De- Com- . Wales part- mon- ; Monthly Year and month. ! ! , i ! ti S L c c t s a o a O : b m t £ 2 i o s - 9 r - 4 b S e c c a o k n m : e r - 4 - 5 ! I ] L m a 2 o e 7 b f n 2 o t r: s B o w u f u s e C r a a e l e a n t n h u d - , ; ! • S B t t t u l a i c l n t a l i : e l s - - S c t G i r t c a a e ] i t n u e i - s e : - 1 modities. modities. com- Statis- 1 Num- 45 com- (vari- modities, tics: 92 ; ber of modities. ; able). (vari- com- i comable). modities.' modities i not 1 shown. 1890. 85 81 i 97 ; 1895. 73 71 70 1900. 88 80 82 ! 1905.. 85 84 84 84 85 1910.. 92 92 I 92 f 88 m 1913. 100 100 100 100 100 1914., 100 100 106 ! 95 102 1915. 127 110 147 ! 114 140 1916. 160 134 138 I 137 188 1917. 205 174 153 i 153 252 1918., 226 205 1914. January.. 101 2 100 98 2 100 April 101 2 102 102 2 100 July 104 99 2 109 101 2 101 October.. 106 102 2 113 95 2 107 1915. January.. 118 103 2127 101 2124 April 125 108 2 153 109 2 135 July 126 111 2 167 115 2 142 October.. 134 112 2H2 117 2 158 1916. January.. 149 127 2138 123 2 179 April 157 132 2137 137 2 190 July 157 132 2 138 134 October.. 175 138 2 139 140 2 198 1917. January... 187 15-1 M40 150 215 February.. 193 160 151 225 March 199 163 151 230 April 203 189 2 146 150 248 May 205 177 153 256 June 211 179 152 266 July--- 208 179 2 158 i 152 268 A N S O D e u c o e p t c g v o t e u e e b m m s m e t r b b b e e e r r r . . . . 2 2 2 2 2 0 1 1 0 1 7 4 8 7 2 1 1 1 1 1 7 7 8 8 8 9 9 1 7 3 2 166 i 1 1 1 16 5 5 4 3 6 2 7 2 2 2 2 3 9 8 8 7 0 3 0 4 0 4 1918. January 219 190 2 173 161 313 February.. 220 194 165 319 March 221 199 156 327 April 223 199 155 333 May 225 204 j 164 335 June 226 207 ! 163 329 July 227 210 130 337 August 230 210 170 350 September. 232 211 164 355 October 233 214 181 i 160 3G0 November. 230 215 180 j 358 December.. 231 213 179! 353 1919. January... 217 211 349 February. 215 206 March 213 April 1 Average for January and July. a Quarter beginning in specified month. NOTE.—Monthly figures shown for Brads treat and for Dun are for first of month. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

478 FEDERAL RESERVE BULLETIN. MAY 1, 1919. Movement of wholesale prices since January, 1918. United States. United Kingdom. Canada. France. Italy. ': Japan. B S ( m 2 m v t 9 u L a a o 4 o r r t a e d i n i b s a a c i t t t o b o u h i i m c e r l ) e o s s . - ; : f f m m o 9 ( s B 6 f l o o t i l r o r d r c n s e a w i o t t e t d h m i i t o - n e : ) f - s g . f m 2 m o ( 0 f l 0 D o o l i o r d n u s c w i t t o n t h i i m o : n e ) f s g . - E m m c 4 ( o 4 e o o n n d c n o d i o t t m h m i o e ) i f - s . s t: ! m m 4 ( ( S b 5 e S o o t e n a d a c n c d u t i o t k i t e h m s i o ) r e t ) : f - - s . ( m 2 m v D m 7 L a 2 o o e e a r d p n n i b c i a a t t o o t b h r i m o r e t l ) : - f e s . - ; S G ( m t 4 m a e 5 o t n o i d c s e n i o t r t t i m a i h q e t - ) e u s . : e R ( m 3 m . 9 o B o d c n a i o t t c m i h e h ) - s i . : E m O c ( ( T o e r o n n i o n e o d k n t m i h t o o a ) i f ) l . st 1918 January 185 18.0776 227.020 57.85 186.2 257.1 361.6 457.6 193.5 February 187 18.0507 227.977 58.18 187.3 263.5 369.2 478.6 199.2 March 187 18.4431 230.313 58.67 188.0 269.2 378.1 496.8 204.5 April....".". 191 18.9133 226.665 59.41 189.8 269.4 385.4 505.6 203.6 May 191 19.0043 224.843 60.16 191.1 275.8 387.8 515.4 204.8 Juno 193 19.1849 232.575 61.05 192.3 280.6 380.0 523.5 204.0 July 198 19.1162 232.058 61.28 192.9 284.0 389.9 540.6 213.9 August 202 19.0485 232.882 62.67 195.9 284.3 405.0 544.1 223.4 September 207 19.0167 233.227 62.38 197.1 285.3 410.5 545.8 227.3 October 204 18.9110 230.529 62.10 197.8 289.6 416.1 555.9 229.3 November.. 200 19.0151 230.375 62.12 195.3 290.9 413.7 357.9 223.7 December 18.5348 230.146 60.94 196.0 : i 407.9 352.9 215.2 1919 January 202 | 17.6344 22©. 050 ! 58.51 192.1 286.5 i 403.5 349.0 j 211.7 February 197 17.2244 217.037 | 57.96 187.5 279.8 j. 204.7 March 200 i 17.2795 219.973 I 57.23 These differences in methods of construction which is commonly practiced by the compilers point to differences in the use to which the num- of index numbers, additional index numbers bers should be put. The adaptation of index for the subsidiary groups being computed. It numbers to specific purposes has been recog- must, however, be recognized that the majority nized in several ways. Certain series of index of these classifications have been based, not numbers of the prices of foodstuffs have been upon the distinctive price fluctuations of the prepared, the Annalist and Gibson numbers in various groups chosen, but *upon technical the first table being examples of numbers of characteristics, building materials, for example, this type. Again, in many of the series em- being distinguished from fuels, etc. It is thus bracing smaller lists of commodities, the more seen that the apparently contradictory consensitive character of which has been remarked, clusions often shown by various index numbers the aim has been to obtain series largely for use may be readily explained, and that they by no as ' 'business barometers.;; Finally, there may means destroy the value and cast doubt upon be mentioned the grouping of commodities the legitimacy of the device itself. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MAY 1, 1919. FEDERAL RESERVE BULLETIN. 4-79 WHOLESALE PRICES. While the index number for the group of In continuation of figures shown in the raw materials has increased from 192 to 198. April BULLETIN there are presented below the index number for the mineral products monthly index numbers of wholesale prices for subgroup has continued its decline from the the period July, 1918, to March, 1919, compared high level of 183 in November and now stands with like figures for March of previous years; at 170, as compared with 173 for the month also for July, 1914, the month immediately of February. The decrease is due to conpreceding the outbreak of the great war, and siderable decreases in the prices of cokeindex numbers for the years 1914 to 1918, in copper, and pig iron, the changes in price of elusive. The general index number is that of other commodities included in the group being the United States Bureau of Labor Statistics. insignificant. The increase in the index num- In addition there are presented separate num- ber for the forest products subgroup, from 148 bers for certain particular classes of commodi- to 149, is due entirely to a rise in the price of ties in accordance with plans announced in pre- North Carolina pine surfaced boards, which vious issues of the BULLETIN. was the only commodity included in the subgroup to change in price. On the other hand, Quotations for three commodities, namely, considerable increases occurred in the index tickings (Amoskeag, 32 inch), onions (fresh, Chicago), and whisky (Bourbon, barrels, 4 years in numbers for both the farm products and bond), have been omitted. On the other hand, animal products subgroups. The former now quotations for overcoatings (soft faced, black, 24 stands at 235, as compared with 222 for the ounces), which had been dropped temporarily, month of February. The increase is due to have been secured for the months^of February increases in the prices of wheat, corn, oats, and March, and the commodity was again in- rye, barley, flax, hay, tobacco, and cotton the latter month. Index numbers for March are as quoted in New York, the New Orleans eluded in the calculation of the indexfnumber*f or quotation for the latest named commodity provisional, due to the fact that certain data affording the only instance of a decline in were not received in time to render them avail- price. The increase in the index number for able for use in the calculations. the animal products subgroup, from 208 to 218, is due largely to the increase in the prices of During March a checking of the fall in hogs and sheep, as well as to lesser increases prices remarked for the two previous months in the prices of cattle, poultry, silk, and wool. is indicated. The general index number of Increase in the price of Brazilian goat skins was the Bureau of Labor Statistics has increased almost offset by decreases in the prices of calffrom 197 to 200. The increase has been due skins and one of the grades of packer hides. to the increase in the prices of consumers' goods and of raw materials, the. index numbers of The index number for the group of conboth groups showing an increase. On the sumers7 goods increased from 197 to 200. Unother hand, the index number for the group like the other groups and subgroups, both of producers7 goods has decreased from 191 to decreases and increases in price occurred for 189. Among the commodities included in an extended list of commodities. The comthis group the only important instances of modities which increased in price were princiincrease are afforded by cement, lime, linseed pally foodstuffs, in particular butter and oil, and rope. On the other hand, decreases cheese, various meats, lard, corn meal, wheat in price occurred for an extended list of com- flour, apples and oranges, coffee, whisky. modities, among which certain metal products, illuminating oil, and shoes. Decreases In in particular steel billets, plates and rails, and price occurred in the case of certain textile structural steel, bar iron and copper wire, products, especially print cloth, cotton underlubricating oil, rosin, jute, cotton and worsted wear and hosiery, suitings, and women's yarns, oleo oil and certain chemicals, such as dress goods, as well as for milk, peanuts, beans. sulphuric acid and glycerin, may be mentioned. wrapping paper, and soap. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

480 FEDEEAL RESERVE BULLETIN. MAY 1, 1919. Index numbers of wholesale prices in the United States for principal classes of commodities. [Average price for 1913=100.] Eaw materials. AH commodities Year and month. Producers' "onsumer•s*>'\ t(Bureau of Farm Animal Forest Mineral Total raw goods. goods. Labor Staproducts, products, products, products. materials. tistics index number). July, 1914 102 106 97 88 92 103 99 March, 1915 114 96 94 88 98 95 101 89 March, 1916 110 114 97 114 110 :so 112 114 J J M A S N F M M O D a u e e o u c e a a a n l p b t c v g y r r r u o t r e c c c , e u e a u b m h h h m s 1 m r e a , , , t 9 y b r , r b 1 b 1 1 1 , , y e e 1 9 9 9 e 8 1 r , 1 9 1 1 r 1 r , , 9 9 1 1 , 7 9 8 1 1 1 9 8 1 1 9 9 1 9 8 9 1 1 1 9 . . 8 8 . . 8 . . . . . . 2 2 2 2 2 2 2 2 2 2 1 3 3 5 3 3 2 4 4 3 4 6 2 7 5 5 4 2 6 0 7 9 9 i 2 2 2 2 2 2 2 2 2 1 1 1 0 1 1 0 0 0 0 0 5 7 9 7 6 5 9 8 8 8 9 6 8 1 1 1 1 1 1 1 1 1 1 1 4 4 4 3 4 4 4 5 5 4 0 3 8 7 5 3 3 9 0 0 0 3 1 1 1 1 1 1 1 1 1 1 1 8 8 7 8 7 9 7 8 8 7 8 2 1 7 3 3 1 0 0 0 2 0 . 2 2 1 1 1 1 1 1 1 1 1 9 9 0 9 9 0 9 9 8 9 6 2 8 4 5 6 0 8 7 7 6 0 2 2 2 1 3 1 3 1 1 2 1 9 0 9 8 0 9 0 9 9 7 8 1 5 4 9 5 9 3 6 9 1 7 2 2 2 2 2 2 2 2 2 1 1 1 1 1 1 0 0 0 0 0 8 5 4 2 0 6 6 9 1 5 2 9 6 ! i | I 2 2 2 2 2 2 2 1 1 1 1 0 0 0 0 9 0 0 0 6 8 9 0 4 2 7 7 6 6 2 0 7 8 In order to give a more concrete illustration j for certain commodities of a basic character, of actual price movements there are also pre- j The actual average monthly prices shown in sen ted in the following table monthly actual j the table have been abstracted from the records and relative figures covering the same period I of the United States Bureau of Labor Statistics. Average monthly wholesale prices of commodities. [Average price for 1913=100.] Corn, Mo. 3, Cotton, middling, Wheat. No. 1, Wheat, No. 2, Cattle, steers, Hides, packers', Chicago. New Orleans. no M rt i h n e n r e n a p s o p l r i i s n . g, re C d h w ic i a n g t o e . r, goo C d h t i o c a c g h o o . ice, st h e e e a r v s, V C n h a i t c i a v g e o. Year and month. Average Rela- Average Rela-" Average Rela- Average Rela- Average | ? Average Relaprice per tive price per live price per tive price per tive tivl price per tive bushel. price. pound. price. bushel. price. bushel. price. pounds. IJrice- pound. price. July, 1914 S0.7044 114 SO. 1331 105 S0.8971 103 §0.8210 83 $9.2188 108 SO. 1938 105 March, 1915 . 7133 116 .0836 66 1.4724 169 1'. 5311 155 8.2333 97 . 2300 125 March. 1916 .7150 116 .1177 93 1.1409 131 1.1328 115 8.9688 105 .2275 124 March; 1917 1.1181 182 .1764 139 1.9844 227 1.9781 201 11.868S 140 .3050 166 March, 1918 1.5563 253 . 3291 259 2.1700 248 2.1700 220 13.2313 156 .2625 143 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 j 216 . 2900 158 January, 1919 I.3750 223 . 2850 223 2.2225 254 2.3788 241 18.4125 216 . 2800 152 .February, 1919 1.2763 207 .2694 212 2.2350 256 2.3450 238 18.4688 217 .2800 152 March ,1919 1.4588 237 .2681 2.11 2.3275 266 2.3575 239 18.5750 218 .2763 150 Hogs, light, WooL Ohio, ag- Hemlock, Yellow pine, Coal, anthracite, Coal, bituminous, Chicago. grades, scoured. New York. N 0 ew co r Y in o g r , k. stov 1 e i , d N ew ew at e Y r o . rk ru C n i n o c f i m nn i a n t e i , . Year and month. p A p r o v ic u 1 e e 0 n r 0 a d p g s e e , r ! j | |p R t r i e i v c la e e - . p A p ri o v c e u e r n a p d g e . e l- p R t r i e i v c la e e - . p A M ri v c e f e r e a e p g t e , e r | | j p R t r i e i v c l e a e - . p A M r v ic e i e r e a p e g t e . e r p R t r i e i v c la e e - . p l A o r n i v c g e e r t a o p g e n e r . p R t r i e i y c la e e - . I | | s A p h r o v i r c e t e r t a o - g p n e e . r p R t r i e i v d la e e - . i Julv,1914 7563 104 50.4444 94 $24.5000 i 101 $42.0000 94 $4.9726 S2.2000 100 March, 1915 7500 80 . 5571 118 21.5000 89 41.0000 92 1816 102 I 2.2000 100 March. 1916 4688 112 . 6714 143 23.2500 I 96 40.0000 90 2742 104 | 2.2000 100 March, 1917 3688 170 .9286 197 25.5000 105 42.0000 94 6744 112 5.00G0 227 March, 1918 1250 206 1.4545 309 30.5000 126 60.0000 135 ^642 128 , 3.6000 164 July, 1918 0000 213 1.4365 305 34.5000 142 60.0000 135 f>P68 130 ' 4.1000 186 August, 1918.... 7750 234 1.4365 305 63.0000 141 5992 130 j 4.1000 186 September, 1918 0700 237 1.4365 305 63.0000 141 9000 136 | 4.1000 186 October, 1918... 0938 214 1.4365 305 63.0000 141 9000 136 j 4.1000 186 November, 1918. 7063 209 1.4365 305 63.0000 141 8071 154 4.1000 1S6 December, 1918. 4400 206 1.4365 305 63.0000 141 0500 157 4.1000 186 January, 1919... 4125 206 1.1200 255 36.0000 149 63.0000 141 9500 157 4.1000 186 February, 1919.. 4688 207 1.0909 232 36.0000 149 64.0000 144 9500 3 57 4.0000 182 March, 1919 8550 223 1.2000 255 36.0000 149 64.0000 144 9044 156 4.0009 182 I Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MAY lf 1919. FEDEKAL BESBBVE BULLETIN". 481 Average monthly wholesale prices of commodities—Continued. [Average price for 1913=100.] C i& oa s^ l, T N 'o o c rf a o h l o k n . - Coke. v C il o ie n . n ell s- C e N o l p e e c p w t e r r o Y , l i y o n t r g i k c o . , t, d N L es e e i w a lv d e Y , r p i o z i r e g k d , . , Pe P t e r n o a n l t e s w u y m e lv l , l a s c n . r i u a d , e, Pig iron, basic. Year and month. Average Rela- I Average I Rela- Average Rela- ! Average j llela- i Average Average Relaprice per tive ' price per ! tive price per tive • price per j tiyo f price per price per tive long tor. price. ! short ton. price. pound. price. ]• pound, jprice. ! barrel. long ton. price. July, 1914 S3.0000 100 i SI.8750 SO. 13*0 So ?0.0390 89 !$1.7500 813.0000 88 March, 1915 2.8500 95 i 1.5750 . 1403 93 . 0390 89 ! 1.5000 12.5000 85 March, 1916 3.0000 100 3.0000 123 . 2700 172 . 0640 145 i 2.4000 18.2000 124 March, 1917 6.5000 217 I 8.5000 348 . 3625 230 . 0950 216 ! 3.0500 32.2500 219 March, 1918 4.4120 .147; 6. 0000 246 . 2350 149 .0724 165 i 4.0000 33.0000 224 July, 1918 4.6320 154 I 6.0000 246 . 2550 162 . 0S02 182 4.0000 32.0000 218 August, 1918 4.6320 154 i 6.0000 246 . 2600 165 . 0805 183 4.0000 32.0000 218 September, 1918 4.6320 154 ! 0.0000 246 .2600 165 .0805 183 4.0000 32.0000 218 October, 1918 4.6320 154 I 6.0000 24!) . 2600 165 .0805 183 ' 4.0000 33.0000 224 November, 1918 4.6320 154 i 6.0000 246 .2600 165 . 0805 183 ! 4.0000 33.0000 224 December, 1918 4.6320 154 j 0.0000 246 .2540 161 . 0667 152 i 4.0000 33.0000 224 January, 1919 4.6320 ]54; 5. 78J3 237 .2038 130 .0558 127 | 4.0000 30.0000 204 February, 1919 4.6320 154 I 5.2188 214 .1731 110 . 0508 115 ] 4.0000 30.0000 204 March.1919 4. 6320 154 i 183 .1509 96 . 0524 119: 4.0000 28.9375 197 I n C or o t t h to e n rn y c a o r n n e s, s, Leather, solo, St B ee es l, s e b m ill e e r t , s, S ta te n e k l, , p P l i a t t t e s s - , Steel h , e r a ai r l t s h , , open Worsted yarns, 10/1. hemlock'No. i. Pittsburgh. burgh. Pittsburgh. 2-32 's crossbred. Year and month. Average j Reia- i Average Rela- Average Rela- Average Rela- j Average I Rela- Ayeraee Relaprice per j tive ! price per tive price per tive price per tive i price per I tive price per tive pound, price, pound. price. ton. price. pound. price. ! long ton. jprice. pound. price. I July, 1914 SO.2150 97 SO.3050 108 $19.0000 74 SO.0113 76 $30.0000 100 SO.6500 84 March, 1915 .1450 66 19.7000 76 .0113 76 30.0000 100 . 6200 80 March, 1916 .2200 99 .3350 119 -12.4000 164 .0255 172 30.0000 100 . 9200 118 March, 1917 .3100 140 .5950 211 66.2500 257 .0438 296 40.0000 133 1.2700 W>4 March, 1918 .5745 260 .4550 161 47.5000 184 .0325 220 57.0000 190 2.1000 270 July,1918 .6412 290 .4900 174 47.5000 184 .0325 220 57.0000 190 2.1500 277 Auffust. 1918 .6400 289 .4900 174 47.5000 184 .0325 220 57.0000 •190 2.1500 277 September, 1918. .6100 276 .4900 174 47.5000 184 .0325 220 57.0000 190 2.1500 277 October, 1918 .0100 276 .4900 174 47.5000 184 .0325 220 57.0000 190 2.1500 277 November, 1918.. .5927 268 .4900 174 47.5000 184 .0325 220 57.0000 190 2.1500 277 December, 1918.. .5500 249 .4900 174 45.1000 175 .0310 209 57.0000 190 2.0000 257 January, 1919 .5000 226 .4900 174 43.5000 169 .0300 203 57.0000 190 1.7500 225 February, 1919... .4200 190 .4.900 174 43.5000 169 .0300 203 57.0000 190 1.7000 219 March, 1919 .4000 181 .4900 174 42.2500 164 .0291 197 54.5000 182 1.5000 193 Flour, wheat, st U g e e e o e r o f s d , , c C n a h a r i t c c i a a v s g e s o , . Coffee, ilio No. 7. st 1 s a 9 t n a 1 d 4 n a - d 1 r a d 9 r 1 d p 7 a , w 1 t 9 e a 1 n r 9 , t , s, Ham C s h , i c s a m g o o k . ed, Ill 1 u N 5 m 0 e ° w i n f i a r Y t e i o n t r g e k s o . t, il, Su N g e a w l r a , t Y e g o d r r , a k n . u- 1918. Minneapolis. Year and month. Average Average Rela- Average Rela- Average | Rela- Average Rela- Average i '.lieiaprice per price per tive price per tive price per i tive price per tive pricepcrj tive pound. pound. price. barrel. price. pound. | price. gallon. price. pound. I price. July, 1914 SO. 0882 ! S4.5938 100 SO. 1769 106 £0.1200 97 SO. 0420 98 March, 1915 .0775 7.4850 163 . 1425 86 . 1200 97 . 0571 134 March, 1916 .0925 ! 5.8813 128 .1769 106 .1200 97 . 0659 154 March, 1917 .0975 ! 88 9.6313 210 .2288 138 .1200 97 . 0706 165 March, 1918 .0891 | 80 10.0938 220 .3028 182 .1600 130 . 0730 171 July, 1918 .0855 ! 77 10.7020 233 .3025 182 .1710 139 . 0735 1.72 August, 1918 .0853 10.2100 223 .3225 194 . 1750 142 . 0735 172 September, 1918. .0959 86 10.2100 223 .3281 197 . 1750 142 . 0845 198 October, 1918.... .1040 93 10.2100 223 .3361 202 .1750 142 .0882 207 November, 1918.. .1069 96 10.2100 223 .3541 213 .1750 142 .0882 207 December, 1918.. .1725 155 10.2100 223 .3670 221 .1750 142 .0S82 207 January, 1919 .1547 139 10.2750 224 .3494 210 .1750 142 .0882 207 February, 1919.,. . 1544 139 10.5500 230 .3338 201 .1750 142 .0882 207 March, 1919 .1602 144 11.2125 245 .3381 203 .1810 147 .0882 207 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

DISCOUNT AND INTEREST RATES. OO in the following tables are presented actual discount and purchase such Government obligations has generally been interest rates prevailing in the various cities in which the extended at lower rates, either at the rate borne by such several Federal Reserve Banks and their branches are located obligations or at a rate slightly higher. The table also shows during!the 30-day periods ending March 15 and April 15, quotations in New York for demand paper secured by prime 1919. Quotations are given for prime commercial paper, bankers7 acceptances, a type of paper which made its appearboth customers' and purchased in the open market, inter- ance in the New York market several months ago. Quotabank loans, bankers7 acceptances, and paper secured by prime tions for new types of paper will be added from time to time stock exchange or other current collateral. Separate rates as deemed of interest. are quoted for paper of longer or shorter maturities in the There has been no marked movement in rates during the first-named and last-named classes. In addition, quotations period under review. From practically all centers it is reported are given for commodity paper secured by warehouse re- that rates are unchanged. Changes in rates for various types ceipts and for cattle loans, as reported from centers in which of paper likewise are not marked, instances of increase and such paper is current. decrease ins ucli rates being approximately equal in number. Quotations are also given of rates charged on ordinary The majority of the relatively small number of changes which loans to customers secured by Liberty bonds and certificates occurred are found in the low rates, customary rates, in parof indebtedness. Assistance to customers to enable them to ticular, affording but few instances of change. Discount and interest rates prevailing in various centers. DURING 30-DAY PERIOD ENDING MAR. lo, 1919. Prime commercial paper. District City. (?us(,om.ers. Open market. ! j In l t o e a r n b s a . nk JO to 90 4 to 6 30 to 90 4 to 6 days. months. days. months. H. L. a IIL. C. ii. h. a. L. a N N o o . . 2 1 . . . . N Bo ew st o Y n ork a. G G 4 5 5" 5 5 4 ?• G G 5 5 V5i 5 5 5 5 J 4 ! | 6 54 5 51 No. 3... Philadelphia ! 6 5 G 5 5 o}\ 54 5 5H4 No. 4...j Cleveland... 6 5 62 G 5 6 5 6 ; 6 ! Pittsburgh.. 6 54G G 5J6 5\ 54 . 54 5* 54 I Cincinnati... 6 54G G 6 6 54 6 i 6 G 6 No. 5...; Richmond.. 6 54 6 6 526 51 54 ! 54 54 54 j Baltimore... 6 54 6 G 546 No. 6...i Atlanta 7 546 7 6 .6 0 54 6 • ! Birmingham 8 6 6 8 546 8 5 6 ' Jacksonville. 7 6 •7 7 6 7 545 54 | New Orleans 6 54 G 6 3 6 No. 7.. : C D h e i t c r a o g i o t 6 G 5 5 154 6 -6 6 G 5 6 ' 5451 O / : - i ! j i No. 8...! St. Louis,... 6 5 54 G 5 6 i6 5 54 ! •• Louisville... 6 546 6 6 6 540 ! Memphis.... 6 546 6 54G ! ... .1 Little Rock. 8 6 6-78 6 6-71 No. 9.. Minneapolis. 6 546 6 546 •54 5 54! No. 10. Kansas City. 7 5 6 7 5 6 6 G 6 i Omaha g.i 5 6 6 5 6 ft 51 6 ' Denver 8 546 8 546 6 5} 54 • No. 11. Dallas 6 6 G 6 6 6 ! No. 12..1 E S l a n P F a r s a o n . c .. i . s . c . o . 6 8 5 6 G 8 6 8 5 G G 8 |5 8 4 G 5 5-i 6 " -5i •: ! Portland 8 6 6 7 G G 1545 51 Seattle 8 6 G 8 6 6 |G 5 5 j Spokane 8 0 7 8 6 64 Salt Lake City. 8 G 8 8 G 8 'SO 8 6 54 ft 54 6 6 6 0 00 Bankers' acceptances, Collateral loans—stock exchange or 60 to 90 davs. other cun-ont. Indorsed. ! Uuindorsed. 5 // 4 . 5 L. 5 C 4 . L. a 6 4J 5-54 54 54 6 5 5 4354-5$; 5 44 5 5 6 6 6 5 5 54 „ * } 5 5 4 6 6 6 5 4f 41 44 j 5 6 G I 6 ft 6 5 ! 6 6 6 54 6 5* 6 8 5 6 i 6 6 6 6 6 6 6 6 6 | 7 67 4 5 6 51 ? ff ? 4ft 41 4A| 4ft 41 4ft 5 6 6 5 ? 6 41 6 | 6 41 6 5 54 5 5 41 4ft 4\ | 41 4ft 41 6 5 6 54 54 6 6 6 5 0 4 6 41 4ft 4ft| ±h 41 41 (i 6 7 5 6 6 6 6 6 6 6 5 6 7 54 6 5154 7 6 ~ 6 5 6 6 6 6 6 6 6 ft 6 8 6 8 6 8 8 6 5 6 54 54sY'""4i""4s 1 6 5 6 6 5* 5 51 6 6 G 6 6 8 6 5 54 6 6 44 1 5 5 5 8 ft 64 8 7 6 5 j 7 G 7 8 54 5 5 j 54 5 5 6 6 8 6 7 8 a Rates for demand paper secured by prime bankers' acceptances, high 6, low 4\, customary U. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

.Discount and interest rates prevailing in various centers—Continued. .DURING 30-DAY PERIOD ENDING APRIL 15,1919. ! Prime commercial paper. P>ankers' acceptances, I Collateral loans—stock exchange or I Secured by 60 to 90 days. | other current. Secured byj Liberty District. City. Customers. Open market. C lo a a t n t s le . w r a e r c e e h i o p u ts s , e i b ce o r n ti d f s ic a a t n e d s etc. ! of indebt- 3 d 0 a t y o s 9 . 0 m 4 o t n o t h 6 s , \ j 3 d 0 a to y s 9 . 0 : . m 4 o t n o t h 6 s. Indorsed. Unindorsed. j Demand, j 3 months. m 3 o t n o t h 6 s. • odness. IT. L. C. L. a H. L. C. i .//. L. C. /.-. C. II. L. C. j II. L. C. If. L. C. \ II. C. V. //. L. a 11. L. c. 11. L. a N N . N N o o o o . . . . 3 l 4 2 . . . . . . . . C C P P B N h l i i o e e n t i w s t v l c l t s a e o i b n Y d l n a u n e o n r a l r d p g t k i h h i . a a . . . . . . . . i 1 . , . 6 6 6 6 0 6 5 5 5 5 5 5 4 5 " 1 5 G 6 5 6 . - " 4 5 ' } 5 5 6 5 5 5 .1 1 ; 8 6 5 ( 5 5 i J ? - i l i i o • f » 5 • t : - 1 i " i ... '5 5 5 5 5 1 4 [ ; " o 6 5 5 4 5 " 1 | * 4 r ! o ! ; 4 8 8 6 o " " i " 5 6 5 i 5 5 " " 1 " o 5 5 5 4 6 - 4 1 " " i i : 4 5 5 5 5 5 1 i 5 6 5 5 - 5 5 5 4 1 1 1 | ! ! i4 4 4 4 4 4 } ! - \ £ § - 1 4 4 4 4 4 4 ' j r ! 1 } f t 4 4 4 4 4 ' i - f 1 j 4 f 4 t t - - f g t I 5 4 6 4 4 4 - f ^ f ^ t t 4 4 4 4 4 4 1 4 - ^ f ;1 & t - 4 4 4 4 1 4 " . £ t t ? - 4 4 f i t y . f G6 6 1 6 4 G 3 5 ? & 5 5 6 6 G * ^ 5 , 6 & I " 6 : 6 j " 6 5 5 } 5 i- G 6 5 5 G 6 : 4 J 6 6 8 0 6 6 * 5 6 6 1 6 6 6 - i 6 6 6 f 5 t 4 G 6 6 6 I 5 6 f 6 6 5 t 4 5 4 5 4 4 - 4 \ { i - { 4 6 4 5 5 - 4 ? * 1 " - ^ 5 No. 5.. Richmond . 6 54 6 54 6 5.1 5-i 6 5.J; 6 f» 51 i .J ft 5 ft 6 6 6 6" 6 6 5 5 Baltimore 6 51 6 5i 6 5:]- 54 5j 6 54 G 6 6 6 5i 4.1 5 No. 6.. A Bi t r la m n i t n a g ham.-I 6 8 5 6 1 G 6 6 6 G 5 5 i - 6 5 " 1 ! 6 8 5 5 ' ^ L G 6 5 54 6 f 8 t 4 6 4 G 6 G 6 5 G 4 6 G : 6 8 5 6 4 6 6 6 6 6 ft 6 6 6 8 6 6 6 6 8 6 4 4 1 1 6 5-6 Jacksonville...! 7 6 7 6 7 5.1; 5 2 6 oi 5.} 6" 6 7 ft 6 7 6 6 i 8 6 7 7 8 7 7 6 7 8 5 6 New Orleans.. 6 51 6 5i 6 , _ _ _ ft ft ft I ft 54 ft 8& 6 7 6 61 6 6 6 41- 5 N N N N o o o o . . . . 7 9 8 10 . . . . . . . L K D C S M O D L M t i o h a e m e . i e t i u n n n t t m L c a r i l v s n a e o s h o p a e e g v i a u s r h R t o a i i l i p C s o s l e o i c l t k i y s . . . . . . . . . , ! i \ • i , 8 6 7 6 6 5 8 6 6 6 1 5 5 5 5 5 5 5 5 5 1 4 \ ~ 1 1 6 6 5 6 5 6 6 6 6 -7 " 1 1 5 5 5 5 5 5 6 5 5 J { 4 ^ 4 - 5 6 -^ 6 6 8 0 - 6 6 6 — 7 ^ 6 I ! " I 6 ' . 8 G 6 . " o 5 5 o . " . i 4 4 \ 5 5 6 5 5 ~ 5 4 ' 1 [ - r 5 } " — 5 « 5 5 6 5 " 4 4 r i 1 5 " 4 ! ' : i : 5 H c 6 6 " 5 5 4 " , " 1 4 J 5 5 ; 5 6 ~ > 5 5 [ . " ^ 1 [ ! 1 5 1 5 6 5 5 5 " - l 4 ' " 5 1 - 1 4 ! ' ! 5 " 4 6 ' 5 " 5 6 6 o 5 5 5 4 5 " " 4 4 5 G G 6 ~ 6 8 o 5 4 o 'l - \ ~ ' \ 4 4 4 4 f 6 t 4 1 ? ft 4 4 6 4 4 4 ' 4 4 * 1•1 4 4 6 5 4 1 l 4 4 4 - -4A 8 f 5 t 4 4 6 1 ',- 4 6 4 8 .1 & .. ..i 1 ! ! . j 1 6 8 f 6 6 8 8 G t G f f f f 5 5 5 r 5 > t t t 1 > 6 5 0 6 6 f 5 6 6 f 4 - t t 7 4 -6 5 6 6 6 6 8 5 6 7 6 J- * 6 6 6 6 6 6 8 8 l o 6 6 b 4 5 o * -/ t 6 6 G 7 f 6 6 8 t ; 6 1 G _ 7 1 6 6 1 - 8 1 1 1 1 i ; . . 1 6 8 ' " " 53- 5 5 " 1 4 5 6 4 6 - " 7 5 I 4 6 6 6 6 6 8 1 54 4 5 5 5 4 4 5 5 5 1 1 4 5 5 1 6 6 5 5 5 6 6 " - 4 1 " 6 5 No. 11. Dallas : 8 6" 6 6 G 6 6 6 6 G G 6 G 6 G 6 0" 6 8 18 6 6 6 6 El Paso i 8 6 8 ft ft ft ft ft ft 6 7 • 8 ft 8 8 8 G 8 I 9 8 8 ; 5 7 No. 12. S P a o n r t F la r n a d n cisco.. ! 8 8 5 6 G 6 8" 6 Si'' 5? -f 5l" 51 5 ft 1 " S 6 i- f (j i 4 4 1 ' 41 6 -51 " a ft 6 ft f 5 > 6 ft G 6 6 8 6 5 8 G 4:1 5-6 Seattle I 8 5 6 8 6 6 51 6 54 6 6 5 41 44 5 5 5 . 8 G 6 G 8 6 ft 4\ 6 Spokane j 8 6 7 6 G 7 8 6 6 Salt Lake City : 8 6 7 51 | 6 G 6 ; 8 G 7 7 8 G 7 i ! 7 a Rates for demand paper secured by prime bankers' acceptances, high 6, low 4J, customary 4^-5. oo CO. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

484 FEDERAL RESERVE BULLETIN". MAY 1, 1919. PHYSICAL VOLUME OF TRADE. January issue contains a description of the methods employed in the compilation of the In continuation of tables in the April data and the construction of the accompany- FEDERAL RESERVE BULLETIN there are pre- ing index numbers. Additional material will sented in the following tables certain data rela- be presented from time to time as reliable tive to the physical volume of trade. The figures are obtained. Live-stock movements. [Bureau of Markets.] Eeceirrts. Shipments. • c m . a a a l l v i r u e k e s e , a t 6 s n . 0 d m H a o r g k s e , t 6 s 0 . S m h a e r e k p e , t C s. O H m m o u r a s l r e e k s s e , a t 4 s n 4 . d T k o i t n a d l, s a . il C c m a a l a t v t r l e k e s e , a t n s 5 . d 4 m H a o r g k s e , t 5 s 4 . markets. I I ! H m m o u a r l r s e k e s s e , t 4 a s 4 ' n . d! T k o i t n al d , s a . ll iSig Head. Head. Head. Head. Head. Head. Head. Head. ! Head. Head. March 1,701,160 4,444,406 1,258,869 127,964 7,532,399 667,989 1,747,669 564,975 | 123,114 3,103,747 July 2,110,835 3,113,281 1,585,735 51,393 6,861,244 665,800 949,301 734,539 ! 45,549 2,395,189 August 2,009,744 2,476,190 2,129,325 80,122 6,695,381 850,363 849,618 1,198,691 ! 76,653 2,975,325 September.. 2,799,913 2,386,475 3,303,955 124,201 8,614,544 1,219,333 786,917 2,059,990 | 114,023 4,180,263 October 2,832,022 3,421,641 3,234,026 146,072 9,633,761 1,300.084 896,258 2,069,057 I 140,845 4,408,244 November.. 2,625,381 I 4,605,158 2,535,115 135,344 9,900,998 1,232)771 1,216,860 1,446,523 ! 131,308 4,027,462 December.. 2,132,491 I 5,569,356 1,640,365 72,471 9,414,683 785,770 1,429,251 716,100 j 7.1,243 3,002,364 1919. January 2,111,704 5,861,685 1,567,613 110,411 9,651,413 761,168 1,546,875 608,016 106,459 3,022,518 February 1,440,829 4,404,751 1,131)805 82,526 7,059,411 528,,„3_2„6 . 1,288,134 418,827 76,512 2,311,799 March 1, otti; 597 3,632,874 1,216,988 6,420,397 556633,889933 I 1,272,654 481,907 64,332 I 2,382,786 I Receipts and shipments of live stock at 15 western markets. Chicago, Kansas City, Oklahoma City, Omaha, St. Louis, St. Joseph, St. Paul, Sioux City, Cincinnati, Cleveland, Denver, Fort Worth, Indianapolis, Louisville, Wichita.] RECEIPTS. [Monthly average, 1911-1913=100.] Cattle and calves. Hogs. Horses and mules. | Total, all kinds. Head. Relative. Head. | Relative. Head. Relative. Head. I Relative. I Head Relative. March '.. h, 300,097 129 3,482,064 158 886,157 65 77,883 5,746,201 124 July I.o97,193 168 2,530,414 115 11,141,488 84 36,782 5,405,877 117 August i, 588,553 158 1,970,086 90 11,424,677 104 54,271 118 5,037,587 109 September 12,249,017 223 1,775,842 81 12,408,609 176 82,656 180 6,516,124 141 October 2,267,534 225 2,570,525 117 2,357,524 173 83,574 182 7,279,157 158 November, 2.053,359 204 3,431,782 156 11,677,537 123 64,482 140 7,227,160 156 December "'706,945 4,197,313 191 1,114,761 36,153 79 7,055,172 153 1919. ! January I:, 650,046 104 4,603,335 209 1,079,377 56,631 123 7,395,419 160 February ji, 096,118 116 3,451,894 168 ! 774,891 48,786 114 5,371,679 125 March II, 094,614 109 2,842,663 129 ! 847,842 41,805 91 4}S26,924 105 SHIPMENTS. 1818. March. 504,229 124 1,233,754 255 342,208 75,602 184 2,155,793 j 150 July 495,211 122 662,728 137 483,151 96 31,379 761,672,469 ! 116 August 652,440 160 599,577 124 751,886 149 51,923 1272,055,827 I 143 September 932,131 229 488,298 101 1,426,120 265 74,473 1822,921,022 197 October 994,943 245 486,460 100 1,479,774 294 84,393 2063,045,570 212 November j 921,831 227 659,432 136 903,283 179 63,589 1552,548,135 177 December I 588,425 145 787,461 163 445,987 37,072 901,858,945 j 129 | 1919. January.. 589,362 145 988,035 204 357,386 56,282 1381,991,065 i 139 "February. 404,296 107 881,507 195 240,815 47,829 1251,574,447 118 March 423,819 104 i 925,802 191 289,742 41,837 1021,681,200 117 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MAY 1,1919. FEDERAL RESERVE BULLETIN. 485 of certain meat products. [Department of Commerce.] [Monthly average 1911-1913=100.] Beef, canned. Beef, fresh. an B d e e o f t , h e p r i c c k u l r e e d d , I j P(.OflT, la d m e r a s, n d c u s r h e o d u . l- Lar*. Pickled pork. I'oands. Pounds. rounds. PoundI , j Poun(i, R ti e v la e - . Pounds. | 3 918. ! March 31,982,302 11,809 62,064,261 jo, 003 | 1,592,114 60 j155.603,947 [ 929 77,729,798 I 521 ' 08,721,464 156 3,968,600 . 90 July 13,528,808 2,042 32,056,016 2,584 I 2.651,413 99 1119,893,655 i 716 55,368,812 371 . 68,600,261 156 4,676,888 106 August 17,129,337 12,585 45; 160,708 i3,641 l', 742,970 85 j 68.857,586 411 45,816,637 i 307 ! 51,920,658 118 3,032,954 69 September.. 7,349,59111,109 34,071.; 816 i2,747 3.009,998 us i 4i;621,488 : 249 36,190,919 ; 24.2 ! 33,267,902 76 2,843,374 i 64 October 9,999,12111,509 26,449,372 -2,132 0', 752,660 215 i 58.131,739 : 347 25,430,106 ' 170 j 46,025,020 105 2,089,654 . 47 November.. 13,313,420 2,009 62,835,161 15,065 i 4,291', 030 161 , 721861.969 435 20,127,671 ' 135 ! 27,285,088 62 2,783,873 ; 63 December.. 7,776:239 11,174 34,161,848 12,754 3,786,847 142 1126'.437^385 : 755 38,939,568 ••261*37,724,398 2,025,778 : 46 1916. ! jj j January 12,636,000 i1,907 17,436,495 ' 1,403 \ 6,030,937 226 |l01.000,122 • 603 i 54,848,433 ! 367 i 37,850,338 86 2,273,683 \ 51 M Fe a b rc r h uary... 8 8 ^ .1 9 5 9 1 7 , , 7 9 2 7 3 3 i ;1 l, , 3 3 1 5 8 8 1 1 4 3 , , 6 7 5 2 1 9 , , 2 9 7 9 6 3 = , ' 1 1 , , 1 1 8 8 1 6 3 3 , , 7 0 4 3 9 5 , , 3 1 9 2 4 0 1 1 4 4 0 6 1 ! 1 ll 5 4 1 '| , , 0 8 8 4 6 2 , ; 3 5 9 2 7 5 • . 9 7 0 3 2 5 ! 8 4 5 9 , , 7 2 1 8 2 3 , , 4 0 2 5 6 3 ! i 5 3 7 5 4 4 ! < 9 7 6 , 8 2 , 3 9 9 7 , 2 4 , 3 7 5 79 2 1 2 6 1 8 I i 2 1 , , 1 9 4 5 1 6 , , 5 3 0 6 8 2 i i 4 4 8 7 i 1 Grain and flour. U. S. Food Administration.] GRAIN MOVEMENT. [In thousands of bushels; i. 0., 000 omitted.] Wheat. Corn. Oats. Stocks at Stocks at : : Stocks at Shipments. close of Receipts. 'Shipments. close of Receipts. : Shipments.: close of month. month. ; month. 1918. 12,415 I. 37,7i._ 39,097 July 196,060 94,823 81,422 | 59,466 : 54,792 31,919 ! 90,006 . 87,893 37,923 August 287,652 L60,162 163,027 48,131 i 42,999 25,559 177.324 124,597 86,030 September. ,200 150,636 246.fi30 : 62,137 ; 40,453 28,522 126;138 102,510 104,739 N O o ct v o e b m er ber. 2 1 4 5 1 5 ; , 2 0 6 6 0 5 • I 1 S 3 O 8 ) , 0 4 7 3 7 8 2 2 S 5 ( 4 V ; , 4 1 7 6 4 9 : ! 4 5 7 9 , , 0 43 2 7 4 ! ' 4 4 7 1 , , 5 8 0 8 1 6 2 2 5 1 , , 7 6 2 4 7 6 ! ' 1 8 1 6 0 , , 8 6 7 2 1 0 : ' 1 9 0 5 7 , , 0 6 0 9 8 3 1 8 0 8 3 , , 3 9 0 4 0 3 December.. 178,916 ! 127,612 253,767 ! 59,237 i 50,312 23.427 80,199 • 81,220 83,363 1919. January— SO,405 245,683 ! 98,648 ; 79,935 30,448 102,887 ' 89,613 85,811 February.. 51,662 2.1!),30(>; 36,603 • 37; 601 27,365 57.599 " 58.920 82,025 Mh' 73,938 228,S4<) i 34.001 i 40,103 26,454 56', 436 66', 941 94;616 Barley. Rye, Total grains. Stocks at ! Stocks at Stocks at Receipts. |Shipments. dose of Receipts. ;Shipments. close of Receipts. Shipments.: close of month. month. month. 1018. i June 10,606 :. 2.1S1;. 102,093 July 14,285 7,0/7 16,984 ! 474 i 2,024 2; 912 i 363,291 246,609 i 171,160 August 21,340 i 0,923 27,174 I 422 . 4,449 6,128 ! 542,869 342,130 I 307,918 September. 27,002 : 15,295 37,782 i 16,092 ". 7,409 12,854 j 517,569 322,303 ' 430,587 October— 23,889 • 19,843 40,670 I 20,667 " 15,047 17.309 ! 455,873 340,161 I 473,818 November., 22,697 1 21,153 39,991 j 17,521 ! 13,552 19', 199 I 329,778 310,037 I 423,610 December.. 23,255 j 22,287 40,320 j 15.721 • 8,721 25,779 i 357,328 290,152 ; 426,656 1919. January... 27,687 I 27,130 40.673 16,686 : 10,201 30,031 375,906 287,374 ! 432,646 February. 16,432 i 17.231 38'. 886 7,857 : 9.419 27,966 178,598 174,833 ! 395,548 March 20,326 ! 22.349 48i 881 10,493 ! 141555 31,146 191,751 217,886 ! 429,946 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

486 FEDERAL RESERVE BULLETIN, MAY 1, 1019, Grain and flour—Continued. WHEAT FLOUR PRODUCTION. [In thousands of barrels; i. e 000 omitted.] v Stocks at Stocks at Production. mills at close Production. mills at close of month. of month. 1918. 1918. June 1,109 December .. 11,759 3,260 July 6,780 1,606 10,391 2,386 1919. Set^ember 11,835 3,064 January 12,994 3,341 October 11,752 3,422 Februarv 7,736 '3,544 November 11,175 3,387 March 10,247 4,578 Receipts of grain and flour at nine seaboard centers. (Boston, New York, Philadelphia, Baltimore, New Orleans, San Francisco, Portland (Oreg.), Seattle, Tacoma; receipts of flour not available for Seattle and Tacoma.] [Compiled from reports of trade organizations at these cities.] [Monthly average 1911-1913=100.] Wheat. Corn. Oats. Rye. Barley. Total grain. Flour. T an o d ta l f l g o r u a r. i * n 1918 Bushels. t R iv el e a . - Bushels. R ti e v l e a . - Bushels. R ti e v l e a . - Bushels. R ti e v l e a . - Bushels. R ti e v l e a . - Bushels. 5 ti 1 v a" e . Barrels. R ti e v l e a . - Bushels. R ti e v l e a . - ! March j 3,148,674 25 9,630,495 2716,998,591 147 641,793 452 174 23,297,891 103|l,547,529 148 30,261,772 110- July . I 3,515,673 2811,128,285 3217,122,372 150 86,551 61 802,582 4812.,655,463 561,266,706 12118,355,640 67 August .123,930,107 19011,473,105 41i2,970,341i 63 170,847 120 714,1031 43 291,,258,503 129; 589,303 11,910,367 116 September.. .123,786,074 1O" 582,856j 16|5,304,250| 112 435,549! 307 730,332! 44 301:,839,061 136! 783,902 14,366,620 125 October ."18,778,5381 149 519,755! 15.8,662,9721 140 21,,332,76111,642 53 29' 1io8x1, ,•422 12911,543,121 148 36,125,467 132 November., .: 9,854,356' 7.„8 786,141 2215,253,154! 1111,332,239] 938 653 880? 3917,887799,,7'70 791,656,205 159 25,332,693 92 December.. .|2'1.221,S63l 1921.1,273,489 36'9,817,268 207 1,107,437: 7791.,915,83l| 11538', 335,888 169 3,258 924 312 53,001,046 193 1919 ! 1 1 J anuary .• 9.768,801: 781,411,366 4019,275,187; 195 566,191! 3981,738,326' 105 22,759,871 100 2,026,246 194 31,877,978 116 February... .•• 7; 805,8111" 6""6 783,263 24j4,713,794! 106 2,299,664! 1,734 64(16,597,986! 78!l,302;061 134122,457,261 88 March .13,789,851; 109 636,127 18^3,254,9141 69 3,880,424| 2,731 2,285', 954: 138:23,847,270 105.1,644,676 157|31,248,312 114 1 Flour reduced to its equivalent in wheat on basis of 4£ bushels to barrel. Stocks of grain at eight seaboard centers at close of month. [Boston, New York, Philadelphia, Baltimore, New Orleans, Newport News, Galveston, San Francisco.] [Compiled from reports of trade organizations at these cities.] [Bushels.] Wheat. Corn. Oats. Rye. Barley. Total grain. 1913. March 1,245,486 3,612,784 3,681,993 201,709 3,004,079 11,746,051 July 3,384,466 \ 736,504 4,136,167 28,633 1,059,197 9,344,967 August 16,041,604 i 649,169 2,464,705 153,275 1,720,251 21,029,004 September 14,313,717 i 181,619 3,153,590 144,646 2,208,017 20,001,589 October 13,423,169 J 115,879 4,591,014 1,550,686 2,697,141 22,377,889 November 13,904,426 ! 252,225 3,548,473 2,385,828 2,845,916 22,936,868 December 14,359,694 ! 302,980 6,074,067 2,248,272 2,767,606 25,752,619 1919. January 15,365,491 645,317 5,495,937 1,972,696 3,047,346 26.526,787 February 12,635/613 417,520 6,110,159"! 1,735,876 3,930,405 24; 829,633 March 12,732,472 346,543 5,650,120, 1,920,348 4,403,665 25,053,148 NOTE.—-Figures for San Francisco include also" stocks at Port Costa and Stockton. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1,1919. FEDERAL RESERVE BULLETIN. 487 California shipments of citrus and deciduous fruits. Total Oranges. Lemons. Total citrus fruits. deciduous fruits. Carloads. Relative. Carloads. Relative. Carloads. Relative. Carloads. 1918. Ma*ch 2,125 87 544 134 2,669 94 Julv 914 37 561 139 1,475 52 3,758 A.ugust 767 31 732 181 1,499 53 9,126 September 549 22 275 68 824 29 5,879 October .. 485 20 639 158 1,124 39 7,143 November.. . . 1,125 46 676 167 1,801 63 1,044 December 3,505 146 722 178 4,287 150 267 1519. January.. . 3,120 128 531 131 3,651 128 109 Febnia^v 3,180 139 658 174 3,838 144 198 5 313 209 897 221 6,010 211 67 Sugar. [Data of International Sugar Committee for ports of Boston, New York, Philadelphia, Savannah, New Orleans, Galvcston, San Francisco.] [Tons of 2,240 pounds.] Raw stocks Raw stocks Receipts. Meltings. at close of ! Receipts. Meltings. at close of month. month. 1918. ;• i9i8. i Julv 288,449 320,908 ' 135,061 ;' December 92,785 123,091 13,774 August 218 690 263 383 : 109 392 September... 176,867 210,745 ' 56,978 3919. October.. 242,912 207,560 i 77,233 l! .Tanuarv '• 243 806 197,145 66,189 November 138 141 17'* 528 ! 50' 989 ,i February ; 389 815 337 420 322 757 Marc:h . ' 355 710 Sol', 010 10C>! 8S9 [Data for ports of New York, Boston, Philadelphia.] [Weekly Statistical Sugar Trade Journal.] [Tons of 2,240 pounds. Monthly average 1911-1913=100.] i Raw stocks at ! Raw stocks at Receipts Meltings • close of month. ! Receipts. Meltings. close of month. j Tons. !*! Tons. Rcla-i R ti c v l e a- . ! 1 Tons- itivS: Tons, j Tons. R ti e v l e a . - 1918. 1918. i March 210,213 j 114 216,000 118 | 25,475 15 November. 139 343 i 7fi 139.000 : 76 43,112 25 December 58 751 32 92'000 I 50 11,490 7 Julv.. 186,225 | 101 221,000 1201 55,322 32 I August... 1591252 1 87 175' 000 9T i 39 375 23 1919 September 145,555 ! 79 139,000 76 I 46,809 27 January 172,051 93 147,000 ; 80 36,544 October 151.703 1 82 156)000 85 1 42,522 25 Februarv 283,172 105 229,000 i 134 90 716 53 1 March ." 232,471 126 26L.000 ' 142 62,187 36 I 1 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

488 FEDERAL RESERVE BULLETIN, MAX 1, 19 Lumber. [From reports of manufacturers' associations.] [M feet.] Southern pine. Western pine. Douglas fir. Eastern white pine. North Carolina pine. ! i i. m N o i o l f l . s . i | | Pr ti o o d n u . c - ! j i m S e h n ip ts - . mills. I Pr t o io d n u . c -1 j m S e h n ip t - s. tion. i ments. m N i o l o f l . s. Pr t o io d n u . c- m S e h n ip ts - . m N i o l o l f . s. Pr t o io d n u . c -i I m S e h n ip ts - . i — 1918. March 189 j 407,682 . 427,94338,44 I 105,133 94,104 103 | 259,600 j 217,500 26 24,691 37,992 35,824 | 27,684 July 201 412,002 453,786 42,45 147,533 i112,915 123 j 269,100 ! 266,300 86,658 59,412 31,517 34,815 August 202 391,648 437,776 44,47 151.156 •109,402 130 292,200 ! 275.000 26 95,942 51,327 24,118 34,377 September. 190 346,069 350,628 45 , J1L33U0;,U022U9 j80,859 *10™6 316.000 I 248.000 28 72,937 38,711 31,908 34,963 October 202 321,214 353,266 42,47 , 121,850 79,701 115 356', 487 I 324', 08027,21 32,787 26,152 27,912 36,478 November. 194 312,126 353,810 3~8~. 4"6• i 90,078 74,103 121 261,189 240,986 16 23,529 23,828 32.596 36.012 December.. 204 310,068 322,831 27^46 ! 63.315 63,823 127 222,389 221,720 11 799 14,176 21.570 1919. January 200 ! 330,137 325,241 21,49 ' 40,354 68,910 122 225,GS8 i 227,129 13 j 7.585 15.172 28,629 23,869 February.. 195 i 328,069 | 309,49424.48 ' 46,037 71,103 122 228.031 238,035 15 | 6; 802 17; 081 25,806 18,034 March 198 ! 378,752 ! 381,12527'. 48 ! 71,426 81,328 120 254,650 ! 255.544 11 | 7.118 17,525 32,110 22.672 RECEIPTS AND SHIPMENTS OF LUMBER AT CHICAGO. [Chicago Board of Trade.] [Monthly average 1911-1913=100.] Receipts. Shipments. Receipts. Shipments. M feet. M feet. R ti e v l e a . - Mfeet. R ti e v l e a . - M feet. R ti e v l e a . - 1918, 191G. March 261,784 137,431 179 November. 142,230 67 i 72,723 December. 163,908 77 | 60,831 July 243,598 98,145 ! 128 August 208,963 78,707 j 103 1019. S O e c p to te b m er ber 1 1 7 3 1 0 , , 5 5 1 0 5 3 6 70 8 , , 5 1 9 3 0 3 i ! 92 | 1 J F a e n b u ru a a ry rv .. . 1 9 3 7 4, , 6 5 0 1 4 1 i ! 4 4 7 5 , , 9 5 2 8 2 5 6 6 2 4 | March.... 124,040 ! 61,653 61 Coal and coke. [Bituminous coal and coke, U. S. Geological Survey; anthracite coal, Anthracite Bureau of Information.] [Monthly average 1911-1913=100.] Coke, estimated monthly production. Bituminous coal, esti- Anthracite coal, ; mated monthly shipments over 'production. nine roads. \ Beehive. By-product. Totai, Short tons. Relative. Long tons, i Relative, j Short tons. Relative Short tons. Relative. Short tons. | Relative. 1918. March 48,631,115 7,276,777 129 ! 2,630,433 101 2,051,206 233 ! 4,681,639 134 July 55,587,312 7,084,775 126 i 2,813,910 108 2,300,673 261 5,114,583 140 August 55,732,092 7,180,923 128 i 2;857,072 102 2,387,675 271 5,044,747 144 September 51,757,334 6,234,395 111 1 2,570,238 98 2,410,798 274 4,981,036 143 October 52,885,813 6,286.366 112 j 2,611,885 100 2,563,183 291 5,175,068 148 Novemjer 44,386,987 5,278,659 94 2,339,197 89 2,523,746 287 4,862,943 139 December 40,634,525 5,736,260 102 2,255,296 86 2,562,048 291 4,817,344 138 1919. January 41,473.000 112 ' 5,934,241 105 ! 2,401,567 February 31,497', 000 91 ! 3,871,932 74 1,822,894 6,779,482 257 12,772,392 \ 122 March 33,716,000 91 ; 3,938,908 70 1,768,449 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MAY 1,191D. FEDERAL EESERVE BULLETIN 489 Movement of crude petroleum in United States. [U. S. Geological Survey.; [Barrels of 42 gallons each.] Stocks at Stocks at Marketed. end oi.' end o(. month. month. Barrels. ' Relative. I Barrels. Barrels. Relative, Barrels. ! i ItUS. j 19.18. March : • 29,539,000 154 149,118,000 |, November., 28,347,000 | 148 131.205,008 ': December., 28,071,000 j 146 12S;3IL000 July..'. j 30.361.000 158 141,475,000 August •' 29; 211'. 000 152 139,472,000 1010. September j 28,674,000 150 135,680,000 January-.-. 29,863,000 15d 129,5-"-8000 October ; 30.592,000 160 134,838,000 February.. 28,5ii;ooo ! .138 128010,000 I March..'... 30,412.000 | 159 131.110,000 Total output of oil refineries in United States. [Bureau oi" Mines.] : Crude oil run I Gasoline Kerosene Gas and fuel Lubricating ; (barrels), i (gallons). (gallons). (gallons). (gallons). 1918. March • 28,239,662 269,827,968 151,228,007 587,985,804 69,503,331 Julv ! 29,170,718 332,022,095 156.828,826 658,439,682 79,303,107 August : 28; 534,275 330,335,046 149; 678,850 071,113,871 72,892.879 September 28,390,431 314,595,959 164,993.798 I 653,085,050 70.593.079 October I 29,237,767 314,251,318 164,928; 640 ! 061,780,441 72; 244;633 November I 27,411,636 312.968,640 109,378,105 604,403,494 72,178,602 December j 26,958,157 291,744. 465 161:742,713 587,873; 987 34,987,842 January i 26,967,332 I 303,710,556 i 158,501,260 j589,630,056 68,304,613 February j 25,232,876 \ 283,518,194 | 164,181,787 553,853,753 52,503,072 Stocks at the close of month. ! i 191?. March... 13,122,241 ; 526,382,386 356,530,540 ' 483,447,727 I 146,572,393 July 31.. 14,026,525 349,928,604 432,807,129 519.012,839 ! 136,460.207 Aug. 31.. 13,940,595 285,446,538 424,281,481 569,016,413 I 137;496; 986 Sept. 30, 14,462,100 269,772,723 436,628,907 583,407,789 ! 147,425.551) Oct. 31.. 15,438,576 250,328,369 419,409,944 596.116,351 ! 135,198; 542 Nov. 30.. 15,222.401 270,072.011 ! 397,804,012 583,777,918 I 132,923,478 Dec. 3J .. 15.749'. 771 297,326! 983 j 380,117. 659,001.357 i 138,853,574. 191.9. Jan. 31 i 15,380,185= 383.212,692 332,393,181 i 346,411,414 i 158,370,431 February 28 : 14,820,601 j 458,449,187 ! 303,062,436 i 692,816,000 j 152,297,L62 Iron andsteel. [Pig-iron production, Iron Age; steel-ingot production, American Iron and Steel Institute.] [Monthty average, 1911-1913=100; iron ore, monthly average, May-Nov., 1911-1313= 100.] I Unfilled orders rJ. S. Pig-iron production. Steel-ingot production. ; Steel Corporation at i close of nibnth. Gross tons. I Relative. Gross tons, j Relative.! Gross tens. Relative. 1913. March 213,091 139 3,110,381 130 9,056,404 172 July 420,988 148 3,113,635 130 8,883,801 August. 389,585 146 3,083,680 129 8,759,042 166 September. 418,270 148 3,197,658 134 8,297,905 157 October.... 486,941 151 3,352;196 140 8,353,293 158 November.. 354,074 145 3,060,154 ( 128 8,124,663 154 December.. 433,617 148 2,992,306 I 125 7,379,152 140 1919. January... 302,260 143 3,107,778 130 6,684.268 127 February.. 940,168 136 2,704,683 121 6,010,787 114 March.... 090,243 133 2,662.265 no 5, 430,572 NOTE.—Figures of steel-ingot production during 1918 are for 29 companies; during 1919, for 30 companies. Index numbers shown, !:.r.vevGL-, form a continuous series. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

490 FEDERAL RESERVE BULLETIN. MAY 1, 1919. Imports of pig tin* [Department of Commerce.] [Monthly average, 1911-1913=100.] Pounds. ! Relative. j: Pounds. Relative. 19IS. i; March 13,529,209 149 I; December 5,887,063 65 July - 15,567,667 171 1919. August 16,317,437 180 January.. 8,461,444 93 September 10,630,666 117 Februarv. 6,271.977 74 October 9,885,984 109 March.:.. 8,284', 970 91 November 10,734,179 118 Textiles. [Silk, Deoartment of Commerce; cotton, Bureau of the Census; wool, Bureau of Markets; idle machinery, Jan.-Sept., 1918, inclusive, National Association of Wool Manufacturers.] [Cotton, monthly average crop years 1912-1914=100; silk, monthly average 1911-1913=100.] Percentage of idle woolen machinery on first of month j to total reported. Cotton cons!-jm> I tion. ~ | Cotton Imports of raw silk. spindles Wool con- Looms. Spinning spindles, i active sumption during (pounds). i Bales. Relative. month. i t n h W c a h n i d r 5 e e 0 r ed - 5 U 0 r n e -i e d r d i e c r h I I i Combs. Worste'd.j Pounds. ! Relative. space. 1918. j March ; 571,202 127 33,789,656 58,878,147 8.2 8.0 4.6! 12.7 j 2,199,167: 107 y 5 5 3 4 4 1 , , 9 7 1 9 4 2 1 1 1 2 9 0 3 33 3 , , 6 6 4 7 6 4 , , 8 8 1 9 1 6 5 5 0 1 , , 9 51 5 6 1 , , 4 6 5 5 7 1 1 1 2 0. . 4 2 1 14 0 . . 3 2 5 6 . . 9 0 1 1 3 5. . 3 2 3 1 , , 8 9 1 9 3 7 , , 5 3 9 1 5 4 ! ! 1 9 8 8 6 August • 490, 779 109 33,524,275 47,648,413 13.8 15.1 7.0 20.2 3,973,754 j 194 September.. 440,833 98 32,760,623 \ 48,692,509 18.3 24.3 9.3 18.8 2,814,270 1 138 October •157,376 102 33,121,507 38,282, 723 21.1 26.8 11.1 30.1 2,336,345 ! 114 November.. 472,941 105 33,652,612 32,355,081 22.5 24.9 13.8 27.4 2,680,863 ! 131 December.. 1919. January 556,721 124 ] 33,856,472 32,573,970 40.3 32.6 32.2 37.5 j 1,461,827 71 February... 433,516 103 j 33,282,593 23,186,818 52.3 41.5 38.7 48.6 | 1,742,812 91 March.. 433,720 32,642,376 29,320,063 58.1 42.4 39.1 52.7 i 1,784,412 87 48.4 26.5 36.1 ! April NOTS.—Figures of idle wool machinery for Nov. 1 and Dec. 1 are not entirely comparable withprevious figures, due to the fact that later figures are lor number of machines running on single shift, while earlier figures count as two a machine running double time. The effect is, however, small. Production of wdod pulp and paper. [Federal Trade Commission.] [Net tons.] Wood i 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 . - 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 . - Fine. 1918. 1919. July 103,348 69,458 177,931 70,526 34,609 January 283,270 116,154 70,443 140,859 50,490 27,675 August 262,377 113,826 76,439 192,810 71.249 36,910 February... 238,228 103,248 62,616 125,208 45,480 24,600 September 240,741 00,528 66,581 168,384 61,390 37,833 March 278,675 114,746 63,699 136.175 48,069 23,514 October 237,624 88,155 60.743 143,373 56,""" 28,533 November 270,849 97,093 67,262 152,321 61,681 ! 33,429 December j-273; 973 \ 107.129 64.501 134,103 51,947 i 29,975 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MAY lf 1919. FEDERAL RESERVE BULLETIN. 491 Tax-paid manufactured tobacco products in the United Slates (excluding Porto Rico and Philippine Islands). [Commissioner of Internal Revenue.] Cigars. j Cigarettes. ; ;: Cigars. Cigarettes. 1 : Chewing ;. a C nd h e s w m in o g k- Large. — j —-i andsmok- r Large. Small. Small. ing tobacco. Small. I Small. | ^gtobacco. !; 1-918. ! Number. Number. I Number. Pounds. •• 1918. Number. Number. Number. Pounds. February —! 555,137,877 66,306,271 12,718,702,135 35,520,128 ;| December... 527,586,098 59,139,250 2,788,379,210 25,276,695 July J 684,609,533 79,237,849 3,796,878,822 36,607,578 : 1919. August I 624,491,239 60,880,910 3,442,446,234 40,764,853 j January.. 518,706,482 72,458,974 3,079,212,253 29,308,616 September... | 585,400,449 60,556,000 3,403,205,736 37,893,818 ! February. 476,329,947 60,138,630 3,126,274,662 27,472,269 October | 594,764,527 63,111,160 3,027,300,975 39,440,893 ! November...] 537,794,904 63,177,200 2,986,775,643 32,618,009 ! 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 s d ti . c F p c o le o re t m e ig d - n . 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 . Do ti m c. es- Foreign. Total. 1918. Number. Number. Number. Number. Number. | 1918. Number. Number. Number. Number. Number. March 5,766 5,050 10,816 ! 33ecember 281 177 7,876 3,402 11,278 July- 3,312 4,410 7,722 | 1919. August 214 77 2,437 4,847 7,284 j January 282 84 8,172 3,635 11,807 September 267 213 2,666 3,564 6,230 ! February 135 164 6,623 4,657 11,280 October 295 313 4,555 2,681 7,236 ] March 258 128 5,978 5,795 11, 773 November 224 252 6,743 2,330 9,093 Vessels built in United States, including those for foreign nations, and officially numbered by the Bureau of Navigation. [Monthly average 1911-1913=100.] Number. to G nn ro a s g s e. Relative. ! Number. to G nn ro a s g s e. Relative. 1918 1918 March . . . 138 147,145 639 December 153 283,359 1,173 July 193 229,931 951 1919. August 177 295,349 1,222 January 132 264,346 1, 094 September... 170 308,470 1,276 February 136 271,430 1,203 October 202 357,532 1,479 March 185 298,005 1,233 November... 171 357,660 1,480 Tonnage of vessels cleared in the foreign trade. [Department of Commerce.] [Monthly average 1911-1913=100.] Net tonnage. Per- Net tonnage. Percentage of ! Rela- of Rela- American. Total. j ! R ti e v l o a . - A c t a o m n t e a t r l o . i-! tive. I American.! Foreign. Total. t R iv el e a . - A c t a o m n ta e t r l o . i- tive. 1918. 1918. March 1,053,942 1,963,471 3,017,413 78 34.9 138 December 1,141,319 2,053,517 3,194,836 82 35.7 141 July 2,093,310 2,941,171 5,034,481 129 41.6 164 191-9. August 2,332,577 2,808,466 5,141,043 132 45.4 179 January 1,1.66,391 1,896,123 062,514 38.1 151 September 2,009,194 2,290,872 4,300,068 111 46.7 185 February 1,262,487 1,671,070 933,557 43.0 170 October 1,875,947 2,163,383 4,039,330 104 46.4 184 March.. j 1,161,416 1,737,171 898,587 75 40.1 158 November l,770;935 1,991,725 3,762,660 97 47.1 186 Net ton-miles, revenue and nonrevenue. [United States Railroad Administration.] 1918. 1918. March 33,912,399,000 |.' December. 33,659,507,000 July 38,761,291,000 1919. August 38,469,847,000 j January 30,383,169,000 September 38,502', 137,000 1 February 25,681,943,000 October 39,548, m?., 0()# 28,952,925,600 November 3o,533.026,000 March Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

492 FEDERAL RESERVE BULLETIN. MAY 1, 1919. DISCOUNT AND OPEN-MARKET OPERATIONS OF THE FEDERAL RESERVE BANKS. Discount operations during the month of On the last Friday of the month the banks March aggregated $5,473,564,174, compared held a total of $1,886,240,000 of discounts, as with $4,980,935,514 during February and against $1,879,820,000 at the close of February $754,933,533 for March of the past year. Of and $583,228,000 about the close of March, the total bills discounted during the month 1918. Of the total discounts held, 89.6 per under review the share of war paper was 95.6 cent was war paper, as against 88.7 per cent per cent, compared with 95.2 per cent the the month before and 52.1 per cent on the cormonth before and 41.7 per cent for the month responding date in 1918. Higher than average of March, 1918. About 48 per cent of the percentages of war paper holdings are shown total discounts for March and a slightly larger for the three eastern, also the Cleveland and percentage of the war paper discounted during Chicago banks. Holdings of agricultural paper the month are reported by the New York about the close of the month totaled $33,986,000, bank, these percentages being considerably as against $7,376,000 on the corresponding lower than for the earlier months of the year. date in 1918, while holdings of live-stock paper Discounts for the month of member banks7 were $33,387,000, the banks at Kansas City, notes secured by eligible paper show an in- Dallas, and San Francisco reporting practicrease since February from $24,299,755 to cally the entire amount of this class of paper. $50,175,825, largely at the Boston bank. During the month under review the number Trade acceptances discounted during the month of member banks grew from 8,748 to 8,761, totaled $8,546,013, of which $2,293,995 were while the number of discounting members inbased upon transactions in the foreign trade creased from 3,091 in February to 3,575 in and handled largely by the New York bank, March. All the Federal Reserve Banks, except while the remainder were bills representing those at New York, Richmond, and Atlanta, transactions in the domestic trade. In addi- report substantial increases in the number of tion the banks report the discount during the member banks accommodated, as may be seen month of $790,715 of bankers7 acceptances, from the following exhibit, showing for each also of $179,308,739 of ordinary secured and Federal Reserve Bank the number of member unsecured commercial and agricultural paper. banks at the end of the last two months, also About 98 per cent of all discounts is repre- the number of members discounting during sented by 15-day paper, i. e., bills maturing these two months: within 15 days at the time of discount by the Federal Reserve Bank. Discounts of 6-month Number of mem- Number of mempaper, i. e., agricultural and live-stock paper ber banks in dis- ber banks accomtrict. modated. maturing after 90 days but within 6 months Federal Reserve district. from date of discount with the Federal Re- Feb. 28. Mar. 31. February. March. serve Bank, totaled $8,239,348, the banks at Chicago, Kansas City, Dallas, and San Fran- Boston 423 424 152 208 cisco reporting over 90 per cent of these dis- New York.... 722 723 403 403 Philadelphia.. 663 665 322 341 counts. Nearly 88 per cent of the total bills Cleveland 821 821 143 177 were discounted at the 4 per cent rate and Richmond 568 568 266 263 Atlanta 427 424 236 214 about 11 per cent at the 4i per cent rate. Chicago 1,353 1,356 301 597 St. Louis 512 514 167 171 The average maturity of the paper discounted Minneapolis... 873 874 128 142 during the month works out at 10.15 days, Kansas City... 313 366 Dallas 737 737 403 421 compared with 10.71 days for the month of San Francisco. 653 257 272 February, all the banks, except Chicago and Total... ;,748 8,761 3,091 3,575 San Francisco, showing shorter average maturities of the paper discounted during the more Bills bought in open market during March, recent month. The calculated average rate either directly or through the intermediary of of discount remains unchanged at 4.15 per the New York bank, totaled $163,740,709 as cent, though the three eastern banks show against $147,410,093 the month before. Of slightly lower average rates than the month the larger total $158,852,456 are bankers' before. acceptances, of which over 60 per cent are based Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MAY 1, 1919. FEDERAL EESERVE BULLETIN. 493 upon foreign trade transactions and about 40 Holdings of purchased acceptances declined per cent upon transactions in the domestic from $276,920,000 on February 28 to $235,trade. Purchases of trade acceptances re- 614,000 at the end of March. Of the March ported by three banks, largely in the foreign total bankers' acceptances constitute $231,trade, totaled $4,087,988 as against 82,805,364 088,000. Of the latter over 80 per cent is the month before. The average maturity of represented by member bank acceptances. all bills bought in open market during the Holdings of trade acceptances at the close of month was 42.69 days as against 45.67 days March reported by four banks totaled $4,526,the month before, while the average rate of 000, of which $4,207,000 were foreign trade discount charged by the banks works out at acceptances, largely oriental paper, held by 4.24 per cent for each of the two months. the New York and San Francisco Banks. Total investment operations of each Federal Reserve Bank during the months of March, 1919 and 1918. [Figures do not include rediscounts and sales of discounted and purchased paper between Federal Reserve Banks.] Bills discounted j Bills bought in Municipal war- Federal Reserve Bank. for members. • i open market. rants. Boston .• 3331,408,710 ! §13,227.576 Now York 2,631,731,390 I 53,250', 195 Philadelphia 832991,680 1,828,063 Cleveland 249,341,010 I 13,331,247 Richmond 335,314,546 ! 3,365,168 Atlanta 144,222,477 ! 3,171,230 Chicago 341, 888,147 . 33,710,550 St. Louis 18,5,126,941 9,925,288 Minneapolis 20981,095 i 12,462,554 Kansas Citv 124,905,789 I 4,476,105 Dallas ". 103,845,502 1,080,000 San Francisco 171806,857 13,912,733 m 5,473,564,174 j 163,740,709 Total Mar., 1919 754,933,533 j 138,996,364 9€ 4,903 Total Mar., 1918 16,448,881,953 ' 512,642,508 1,000 Total 3 months ending Mar. 31,1919. 2,385,607,850 417,890,979 1,487,415 Total 3 months ending Mar. 31,1918. United States bonds. Total investment operations. United States Total United Federal Reserve Bank. certificate of States securi- 3£ per cent. 4 per cent. ; 4| percent. indebtedness. ties. March, 1919. March, 1918. Boston $2,000,000 $2,000,000 $346,636,316 841,805,408 New York $1,000 49,386,500 49,387,500 2,734,369,085 1,336,322,932 Philadelphia 4,550,000 4,550,000 839,369,743 46,003,593 Cleveland 2,772,500 2,772,500 265,444,757 74,032,730 Richmond 338,679,714 158,462,635 Atlanta .• 1,010,000 1,010,000 148,403,707 33,596,588 Chicago 375,598,697 132,755,063 St. Louis 2,500,000 2,500,000 197,552,229 45,217,434 Minneapolis 24,370,000 24,370,000 57,813,649 26,887,172 Kansas City 873,500 873,550 130,255,444 32,366,838 Dallas •I ;•••» 500,000 500,000 105,425,502 24,745,932 San Francisco I, 000 I| 164^666 731,000 896,000 186,615,590 10,883,735 T ot al Mar., 1919 1,000 I 165,050 88,693,500 88,859,550 5,726,164,433 Total Mar., 1918 1,327,650 $8,495,750 | 1,089,231,860 1,099,055,260 1,993,080,060 Total 3 months ending Mar. 31,1919 1,000 1,000,000 325,425 1,243,467,500 1,244,793,925 Total 3 months ending Mar. 31,1918 4,101,050 34,806,688 2,118,965,860 2,157,873,598 4,962* 859," 842 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

494 FEDERAL RESERVE BULLETIN. MAY 1, 1919. Average amount of earning assets held by each Federal Reserve Bank during March, 1919, earnings from each class of earning assets, and annual rates of earnings on basis of March, 1919, returns. Average balances for the month of the several classes of earning assets. Discounted Purchased United States Municipal bills. bills. securities. warrants. Total. Boston $144,540,609 $11,216,847 $14,147,298 $169,904,754 New York 745,545,361 32,688,151 63,620,062 841,853,574 Philadelphia 187,159,835 1,919,778 15,524,916 204,604,529 Cleveland 109,910,115 50,051,734 13,949,110 173,910,959 Richmond 94,647,814 6,805,192 6,609,200 108,062,206 Atlanta 77,776,512 7,289,231 8,362,987 $3,871 93,432,601 Chicago 182,414,143 41,275,717 21,092,421 244,782,281 St. Louis 69,442,450 16,014,429 9,963,335 95,420,214 Minneapolis 23,395,000 32,203,000 9,545.000 65,143,000 Kansas City 79,744,405 12,869,706 14,896;304 107,510,415 Dallas.: 52,494,357 1,719,613 8,302,645 62,516,615 San Francisco 94,461,038 48,733,912 8,089,775 151,284,725 Total March, 1919 1,861,531,639 262,787,310 194,103,053 3,871 2,318,425,873 Total March, 1918 567,474,932 318,777,830 235,961,369 528,499 1,122,692,630 Earnings from— Calculated annual rates of earnings from— Dis b c i o ll u s n . ted Pu b rc il h l a s s . ed se U S cu n ta r i i t t t e e i s d es. M wa u r n r i a c n ip ts a . l Total. co b D u i i l n s l - t s e . d c b h P i a l u s ls r e - . d U s S e t n t i c a e i u t t s e e r . i s d - p M r a a l u n n w t i s c a . i r - - Total. Per cent. Per cent. Per cent. Per cent. Per cent. Boston $501, $39,991 $24,514 $565,964 4.08 4.20 2.04 3.92 New York 2,566, 114,693 152,274 2,833,352 4.05 4.07 2.82 3.96 Philadelphia 652, 6,806 28,823 688,392 4.10 4.17 2.18 3.96 Cleveland 384, 179,570 25,517 589,527 4.12 4.22 2.15 3.99 Richmond 338, 26,449 10,991 375,500 4.07 4.43 2.00 3.90 Atlanta 275 28,113 14,390 $16 318,050 4.17 4.54 2.03 4.96 I 4.01 Chicago 658, 151,146 37,737 846,997 4.27 4.31 2.11 4.07 St. Louis 244, 57,334 17,931 319,829 4.15 4.22 2.12 3.95 Minneapolis 79^ 116,390 24,038 220,176 4.01 4.26 2.97 3.88 Kansas City 313, 47,291 27,904 38S;779 4.63 4. S3 2.21 4.20 Dallas 210, 6,732 14,953 232,015 4.71 4.01 2.12 4.36 San Francisco 3(33, 176,948 19,144 559,379 4.53 4.28 2.79 4.35 Total March, 1919 6,588,193 951,469 398,282 10 7,937,§60 4.16 4.26 2.41 4.96 4.02 Total March, 1918 1,900,718 1,001,075 720,306 1,836 3,(583,935 3.94 3.92 3.59 4.09 3.86 Bills discounted during the month of March, 1919, distributed by classes; also average rates and maturities of bills discounted by each Federal Reserve Bank. Member banks' collateral Customers' notes. paper Average Federal Reserve Bank. se U cu n r i e t d e d by Secured by c T e r p a t d a e n c a e c s - . acS- Total. ! i A m v a e tu ra r g it e y ! (36 r 5 a - t d e ay States war United States Otherwise accept- I in days. obligations. war secured. per cent. obligations. Boston 89,613,744 $281,146,560 $37,010,500 i $510,189 $101,823 83,025,924 $331,408,740 8.27 New Y"ork 23,259,399 2,539,834,662 2 3,581,639 114,545 64,941,145 2,631,731,390 8.36 4.02 Philadelphia 18,750,461 788,215,567 396,659 . 25,628,993 832,991,680 7.28 4.07 Cleveland 8,721,389 235,031,600 427,305 I 5,160,716 249,341,010 12.28 4.13 Richmond 4,286,367 318,440,638 1,925,000 850,340 9,812,201 335,314,546 9.98 4.31 Atlanta 920,623 130,975,650 32,000 606,231 11,687,973 144,222,477 16.64 4.18 Chicago 3,551,591 323,238,820 3,042,671 267,882 11,787,177 341,888,147 16. 28 4.15 St. Louis 2,857,375 168,920,450 100,000 335,582 503,700 12,349,834 185,126,941 12.87 4.18 Minneapolis 1 125 20,693,700 18,876 267,894 20,981,095 15.42 4.19 Kansas City 898,402 100,535,139 '"7,"699,"i54" 699,096 15,067,746 124,905,789 21.87 4.72 Dallas 339,594 93,877,680 328,500 109,681 9,190,047 103,845,502 20.22 4.42 San Francisco 2,121,314 158,511,020 38,000 3743,033 s'j 10,389,089 171,806,857 16.58 4.47 Total March, 1919 75,321,384 5,159,421,498 50,175,825 8,546,613 i 179,308,739 5,473,564,174 10.15 4.15 Total March, 1918 63,669,906 251,445,794 52,396,589 1(5,230,557 368,194,716 754,933,533 22.25 j 4.08 * Includes $15,000 in the foreign trade. 2 Includes $1,974,870 in the foreign trade. »Includes 8304,125 in the foreign trade. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MAY 1,1919. FEDERAL RESERVE BULLETIN". 495 Bankers9 and trade acceptances in the foreign and^ domestic trade and finance bills purchased during the month of March, 1919; also average rates and maturities of total bills purchased by each Federal Reserve Bank. Bankers' acceptances. Trade acceptances. Average Federal Reserve Bank. do In m t e h s e tic f I o n r e t i h g e n Total. do In m e th s e tic f I o n r e t i h g e n Total. Fi b n i a ll n s c . e p T u o r t c a h l a b s i e l d ls . m A in a v d t e u a r r a y i g s t e y . p (3 e b 6 r r a 5 a s c - t i e d e s a n ) y t. trade. trade. trade. trade. Boston S3,855,994 59,371,582 .$13,227,576 513,227,576 34.10 4.19 New York 14,496,982 35,773,731 50,270,713 $2,608,349 $2,608,349 $.371,133 53,250,195 36.89 4.18 Philadelphia 1,149,811 678,252 1,828,063 1,828,063 39.38 4.17 Cleveland 5,577,406 7,376,843 12,954,249 §294,153 82,845 376,998 13,331,247 46.57 4.19 Richmond 1,895,668 1,469,500 3,365,168 3,365,168 69.82 4.56 Atlanta 2,433,287 737,943 3,171,230 3,171,230 66.65 4.56 Chicago . 15,645,013 17,740,537 33,385,550 325,000 33,710,550 35.39 4.18 St. Louis 4,207,721 5,717,567 9,925,288 9,925,288 36.52 4.21 Minneapolis 4,420,588 7,941,966 12,362,554 100,000 12,462,554 57.64 4.20 Kansas City 1,922,641 2,553,464 4,476,105 4,476,105 58.48 4.38 Dallas. 115,000 965,000 1,080,000 1,080,000 52.76 4.57 San Francisco 7,337,938 5,468,022 12,805,960 1,102,641 1,102,641 4,132 13,912,733 60.58 4.33 Total 63,058,049 95,794,407 158,852,456 294,153 3,793,835 4,087,988 800,265 163,740,709 42.69 4.24 February, 1919 61.877,545 81,258,204 143,135.749 549,382 2,255,982 2,805 364 1,468,980 147,410,093 45.67 4.24 Januar:/, 1919 95,679,683 100,932; 543 196,612; 226 1,241,615 1,939,095 3,180,710 1,698,770 201,491,706 55.51 4.28 Rediscounts and sales of discounted and purchased paper between Federal Reserve Banks from Jan. 1 to Mar. 31, 1919. [In thousands of dollars, i. e., 000 omitted.} Rediseounted or sold by Federal Reserve Bank of— Rediseounted or p F u ed r e c r h a a l s R e e d s or b v y e Boston. New York. Philadelphia. Richmond. Atlanta. Bank of— January. February.; January. [February. March. January. February. March. J January, iFebruary. March. January, New York ! Cleveland 10,017 5,035 I 5,088 i 10,100 ! 10,000 i ! 5,000 Chicago 10,004 j 30,000 25,000 ! ; 15,000 31,190 St. Louis 15>,,008751 !. ! I 20,079 5,000 i : 5,000 Minneapolis... - ' 5,053 i: 10,038 Ij 4,191 6,013 20,000 ! 10,000 ! 30,000 30,000 "*5,"666 Kansas City... 5,010 ; 5,060 :. 5,000 San Francisco. 17,729 j Total. 15,027 I 30,251 ! 10,141 j 37,867 | 24,270 j 16,017 30,000 60,000 I 10,000 j 30,000 j 60,000 j 36,190 Purchased bills.. 5,010 1 20,223' 10,141 I 37,867 24,270! j Discounted bills. 10,017 ! 10,028 ! ; ; 16,017 j 30,000 60,000 : 10,000 i 30,000 60,000 j 36,190 .Rediseounted or sold by Federal Reserve Bank of— Re p F d u e i d s r e e c r o h a u l a n s R e te d e d se r b v o y e r : : ; M ap in o n h e s - . Dallas. All Federal Reserve Banks. Pur b c i h ll a s s . ed co b D u i i l n s l - t s e . d Bank of— January. January, j February. March. January. | February. March. Total, New York 4G 46 ;. Cleveland '. 0,000 15,105 1 15,135 21,000 51, 20,223 31,017 Chicago ' 20,000 37,500 I 45,000 61,194 I 82,585 105,079 248, 25,136 223,722 St. Louis I 5,071 10,000 15, 5,071 10,000 Minneapolis ; 12,500 38,566 40,038 56.691 135, 19,282 116,013 Kansas City ! 5,010 5,060 5; 000 1?: 10,070 5,000 San Francisco ' 17,729 17,720 Total. 32,500 :• 37,500 ! 53,500 119,921 165,618 i 197,770 P D u is r c c o h u as n e te d d b b il i l l s l s ' 46 ! 32,500 ; 37,500 | 53,500 1 1 0 5 4 , , 1 7 9 2 7 4 1 5 0 8 7 , , 0 5 9 2 0 8 ! ; 1 2 7 4 3 , , 2 5 7 0 0 0 97,557 385,752 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

496 FEDERAL RESERVE BULLETIN MAY 1,1919. Amounts of bills discounted and acceptances and warrants bought by each federal Reserve Bank during the 3 months eliding Mar. 31, 1919. distributed by maturities. 15-day maturities. 30-day maturities. 60-day maturities. Federal Reserve Bank. Discounts. A a c n c c e e p 's t . - rotal. Discounts. A a c n c c e e p s t . - Total. Discounts. A a c n c c e e p s t . - I I Total, Boston S953,537.094' $17,148,902 8970,685,996 S6,626,996i 810,146,891 816,773,887 So,791,168 $22,820,012 $28,611,180 New York 8,640,738'.107: 41,278,219 8,682,016,3261 4,441,475! 79.798,952 84,240,427 20,097,417 39,195,990 59)293,407 Philadelphia 2,129,714;6841 495.144 2,130,209,8281 1,555,520! 2'.256,200 3.811,720 2,326,903 686,991 3,013,894 Cleveland 626,795,444: 2,597', 232 629,392,676 3,137,311! 7,006,888 10;144,199 12,878,168 29,453,424 42,331,592 Richmond 859,186,340! 454,000 859,640,340 7,567,832 i 628,000 8,195,832 11,200,437 2,779,036 13,979,473 Atlanta 396,235,4911 172,765 396,408,256 3,677,771! 391,942 4,069,713 8,802,219 2,844,832! 11,647,051 Chicago 885,216,210 9,955,460 895,171,670; 3.744,173! 11,044,043 14)788,216 7,678,461 23,055,961 30,734,422 St. Louis 422,958,776 10,319,472 433,278,2481 3)165,924i 4,694,586 7, 860,510 4,292,232 13,069,019 17,361,251 Minneapolis 49,285,248 100,000 49,385,2481 199,0381 744,109 943,147 425,247 16,234,362 16,659,609 Kansas City 267,918,078 211,423 268,129,501' 3,772,869 809,603 4,582,470 11.612,939 8,329)014 19,941,953 Dallas 247,511,164! 532,000 248,043,164' 3,609,810! 635,000 4,304,810 121081,7961 2,173,000 14,254,796 San Francisco 470,467,938 2,164,081 472,632,019 1,934,775! 4,533,048 6,407,823 4,678,9411 19,351,422 24,030,363 Total. 15,949,564,574 85,428,698 16,034,993,272 43,433,494-. 122,689,260 166,122,754 101,865,928J 179,993,063 281,858,991 Per rent 94. c l.o! 1.7 90-day maturities. Over 90-day maturities. Total. Federal Reserve Bank. co D u i n s- ts. A a c n c c e e p s t . - r W an a t r s - . Total. co D u i n s- ts. A a c n c c e e p s. t- Total. Discounts. A a c n c c e e p s. t- r W an a t r s - . 3 Total." Boston 152,421. S7,836,785i , '399,989,206! S918 058,108.597 $57,952,590 $1,116,008,597 New York 266,228! 24,911,735 |127,177,963| 18,413 18,413 767,561)640 185)184,896 8,952,746,536 Philadelphia 719,097! 814,770 ! 24,533,867 6,575 6,575 157,322,779 4,253,105 2,161,575,884 Cleveland 029,374j 18,922,131 ! 26,951,505 71,439 $400,000 471,439 650,911,736 58,379,675 '709,291,431 Richmond 109,640' 6,080,450 i 23,190,090 282,069 10,000 292,069 895,346,318 9,951.486 905.297,804 Atlanta 546,952 5,668,074 SI, 000| 19,216,026 511,767 511,767 422,774,200 9,077.613 SI, 000 431,852,813 Chicago 872,5011 18,715,141 I 33,587,642 2.370,580 2,370,580 913,881,925 62.720'. 605 976,602,530 St. Louis 233,036,! 3,337,895 ! 12,570,931 255,873 255,873 439.905,841 31,470)972 471,376,813 Minneapolis 296,175; 10.405,469 ' 10,701,644 582.442i 582'. 442 of)' 788.150 27,483,940 78.272,090 Kansas City 794,469! 4)364,681 ; 20,159,150 9.647)168 9.647,168 308; 74 a) 523!13'. 714,719 322)4601242 Dallas I 108,896! 745.000 i 14,853,896 9'. 023,426 9)023,426 286,335,092 4'. 085,000 200,420)092 San Francisco 572,199. 22,319,356 .. .., 38,891,555 3)546.299 3,546,299 497)200,152 48,367,907 5-15,568,059 Total is ', 700,988124,121,487 1,000451,823,475 26,316,969 410,000 26,726,969 16,448,881,953 512,642,508 1.00016,961,525,461 Percent i 0.2 ...'....! 100.0 Discounted bills, including member bank's collateral notes, held by each Federal Reserve Bank on the last Friday in March 1919, distributed by classes. [In thousands of dollars; i. e., 000 omitted.] Member banks' coli Customers' lateral notes. papers Federal Reserve Bank. j A p g t a u r p i r c a e L! l r U . -l- I Li p v a e p -s e to r. ck s m e G c e u o n r v t e e d w rn a b - r y 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 t a a a c n n c c k e e e p s r - . s' d A is ll c o o u th n e ts r . Total. obligations. ment war secured. obligations. Boston 1 79,228 69,639 75 1,199 357 3,421 153,920 New York 191 75,554 586,433 2,939 72 26,298 691,487 Philadelphia.. 53 28,101 144,813 436 20 11,866 185,289 Cleveland 31 120 14,070 100,488 453 1,729 i 116,891 Richmond 3,249 3 13,711 72,845 1,725 1,202 7,619 ! 100,354 Atlanta 2,519 4,525 60,731 10 1,010 10,298 ! 79,273 Chicago 10,385 7,899 191,379 2,718 816 1,448 j 214,645 St. Louis 192 246 3,402 63,133 100 440 623 10,220 ; 78,356 Minneapolis... 591 468 46 28,547 16 ...... 405 30,073 Kansas City.... 3,749 19,267 1,323 48,850 7,9 766 9,263 91,223 Dallas 8,910 9,098 1,122 20,796 667 ...... 10,718 51,311 San Francisco., 4,115 4,005 4,114 70,192 20 962 10,002 93,418 Total. 33,986 33,387 I 233,095 j 1,457,846 13,314 10,239 103,287 1,886,240 Percent I 1.8 1.8 i 12.3 1 77.3 0.7 0.5 0.1 5.5 100.0 Percen T t o tal, March, 1918 : | 7, 1 3 . 7 3 6 ! 24, 4 30 . 0 2 ! ! 168 2 ,4 8 1 .9 6 1 ! 18 2 5 3 ,4 . 8 2 8 25, 4 0 . 6 3 4 21,778 200 3 ,8 4 1 .4 1 58 1 3 0 ,2 0 2 .0 8 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MAY 1, 1919. FEDERAL RESERVE BULLETIN. 497 Acceptances purchased and held by each Federal Reserve Bank on March 31,1919, distributed by classes of accepting institutions, [In thousands of dollars; i. e., 000 omitted.) Bank acceptances. Trade acceptances. | Federal Reserve Bank. M ba e n m k b s e , r i i j , N b p e c o a r o n n m m t i r e u e - s m s . t -N be b o r a n n m S k t e a s m . te - P b r a i n v k a s te . b F r b a o a a n r n n e c d k i h g e n s ; ! j | Total. !Domestic! Foreign. Total. Grand i Boston 14,089 ; 347 659 2,188 483 17,766 17,766 New York 22,768 622 6,371 4,692 4,181 38,634 197 2,324 2,521 41,155 Philadelphia.. 1,604 i. 151 418 2,173 2,173 Cleveland 25,586 i 1,104 1,389 2,563 1,522 32,164 122 52 ""174 32,338 Richmond 7,054 7,054 7,054 Atlanta 6,150 i. 12 6,162 6,162 Chicago 38,261 ; 49 394 331 ! 68 39,103 13 13 39,116 St. Louis 12,314 ;. 336 231 500 13,381 13,381 Minneapolis... 21,169 i. 2,375 1,291 2,049 I 26,884 26,884 Kansas City... 813 37 375 i 8,319 I 8,319 Dallas 1 873 !.. 1 873 ' 1,873 San Francisco. 27,270 | 3,061 3,512 3,707 37,575 1,818 1,818 39.393 Total: Mar. 31,1919.. 185,207 ;• 2,172 15,561 15,263 12,885 i 231,088 319 4,207 4,526 235,614 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 i 2,178 11,986 22,163 15,119 ", 275,683 1,871 3,739 5,610 281,293 Mar. 31,1918.. 275,144 i 1,360 1,884 31,779 8,562 ! 318,729 23 7,992 8,015 326,744 Mar. 26,1917.. 43,457 ! 22,515 645 17,504 250 i 84,371 1,212 85,583 1" Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

498 FEDERAL RESERVE BULLETIN. MAY 1. 1919. BESOUBCES AND LIABILITIES OF THE FEDERAL RESERVE BANKS.- Loan operations of the Government during millions) being 76,1 millions less than five the period March 21 to April 25 were composed weeks previous. All the banks except New chiefly of the issuance of the ninth series of York, Richmond, and Dallas report consider- Treasury certificates dated April 10, amounting able reduction of their acceptance holdings. to over 646 million dollars and of the redemp- United States short-term securities on hand, tion before maturity, early in April, of Treasury largely 1-year 2 per cent Treasury certificates certificates due May 6. In addition the to secure Federal Reserve bank note circulation, Federal Reserve Banks successfully floated a show a steady growth from 172.5 to 191.5 200 million dollar loan for the War Finance millions, this increase corresponding to an Corporation. The effect of all these opera- increase in Federal Reserve bank note circulations on the loan portfolio of the Federal tion from 142.4 to 158.8 millions. Total Reserve Banks is seen in the-increase of the earnings assets show an increase for the period war paper holdings between April 4 and April of 11.7 millions and on April 25 stood at 11 from 1,674.9 to 1,767.4 millions, the high 2,354.9 millions. level reached during the period under review. Partly in consequence of further Govern- The beginning of the Victory loan campaign ment deposits and partly as the result of the and the rather heavy calls for funds by the release of " earmarked" gold and investment in Government during the following weeks pre- the New York market, the gold resources of vented any material reduction in this loan the system increased by 28.4 millions. Since account, the April 25 total of 1,760.7 millions the begininng of the year the gain in gold by being 69 millions in excess of the corresponding the Federal Reserve Banks has been in excess total on March 21. Other discounted bills on of 11 millions, compared with about 153 hand fluctuated around 200 millions and millions of gold gained during a corresponding stood at about 190 millions on both the initial period in 1918. and final dates. As a result the share of war Net deposits on April 25 totaled 1,752.1 paper in the total discounts shows a slight rise millions, or 16.5 millions less than five weeks to over 90 per cent, larger percentages obtain- before, while Federal Reserve notes in circulaing for the eastern and the Chicago banks. tion increased by 38.9 millions, or at the weekly Additional rediscounting between Federal rate of about 7.8 millions, as against 11 millions Reserve Banks largely of 15-day war paper and per week for the four weeks immediately prebankers' acceptances may be noted. Aggregate ceding. Considerable additions to their outcontingent liabilities of the rediscounting banks standing circulation are shown for Boston, New on their operations show an increase from 83.7 York, Chicago, and Atlanta, the other banks to about 98.1 millions. These figures are ex- reporting either small increases or decreases. clusive of substantial amounts of acceptances As the result of the relatively large gain in held through purchase from the New York bank reserves, the decrease in net deposits and only without its indorsement. moderate increase in. the Federal Reserve note Continuous liquidation of acceptances on liabilities the banks' reserve percentage shows hand is shown, the April 25 holdings (185.8 a rise from 51.6 to 52.1 r>er cent. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MAY 1,1919. FEDERAL RESERVE BULLETIN. 499 Resources and liabilities of each Federal Reserve Bank at close of business on Fridays, Mar. 28 to Apr. 25, 1919. RESOURCES. [In thousands of dollars; i. e., 000 omitted.] Bos- Now Phila- Cleve- Rich- At- | Chi- St. • Minns-1 Kansas San ton. York. delphia. land. mond. lanta. cago. Louis. ; apolis. j City. Dallas. Fran- Total. cisco. Gold coin and certificates: Mar.28 2,974 249,978 140 11,627 2,224 8,105 22,656 139 10,545 326,791 Apr. 4 3,171 248.989 117 18,798 2,158 8,172 22,707 156 6,076 10,793 333,384 " Apr.ll 3,414 247; 798 263 19,690 2,206 8,187 23,209 7,091 10,890 335,162 Apr.18 3,753 255,616 106 22,980 2,209 8,275 22,971 121 7,114 10,830 346,145 Apr.25 2,975 256,236 125 19,089 2,226 8,061 22,960 7,150 8,760 340,022 Gold settlement fund, Federal Reserve Board: Mar.28 46,423 190,414 39,619 73,231 21,448 12,084 80,424 22,806 25,429 12,210 30,145 563,577 Apr. 4 34,780 224,280 44,010 58,533 26,883 11,312 101,181 18,565 30,178 15,030 29,601 612,711 Apr.ll 47,782 145,010 46,281 82,945 27,382 17,095 '"",556611 27,190 31,332 7,269 39,881 610,196 Apr.18 41,523 176,507 4.2,331 50,415 26,882 17,770 ',991 22,361 29,994 7,358 37,814 612,365 Apr. 25 37,738 189,501 42,122 58,242 24,119 •12,061 115,261 25,211 33,535 5,621 36,606 605,809 Gold with foreign agencies: Mar.28 408 2,011 408 525 204 175 816 291 204 Apr. 4 Apr.ll Apr.18 Apr.25 Gold with Federal Reserve "Mar.28 54,059 268,301 55,305 140,971 40,763 42,119 269,506 I 40,737 51,104 38,725 17,565 93,915,1,113,070 Apr. 4 55,500 281,596 74,640 135,119 38,521 42,577 239,512 j 43,903 30,730 38,140 17,131 102,804 1,100,173 Apr.ll 53,778 279,939 70,073 133.975 35,944 41,291 242,786 41,704 30,139 36,877 17,898 98,040 1,082,444 Apr.18..... 52,058 277,386 68,438 130'. 845 33,749 42,837 245,896 i 42,564 29,325 35,372 17,427 109,622 1,085,519 Apr.25 60,405 276,335 76,069 138,796 31,515 43,699 255,723 j 40,393, 28,207 34,614 16,789 107,404 1,109,949 Gold redemption fund: Mar28.t 12,710 24,688 30,097 557 10,057 4,572 j 30,186 ' 5.273 5,695 4,153 2,582 1,468 133,038 Apr. 4 14,082 25,000 9,934 i 393 6,271 4,994 22,849 4,903 6,935 4,"" 2,947 1,771 104,682 Apr.ll 16,481 25,000 13,363 I 1,671 8,243 5,727 25,509 5,750 2,372 2,029 3,264 115,078 Apr.18 18,969 25,000 15,135 1 623 9,552 5,244 26,086 4,937 ! 3,0157,041 1,929 597 118,128 Apr.25 11,492 25,000 7,636 ' 844 11,086 4,603 30,957 5,873j 3,520 7,728 2,512 2,185 113,436 Total gold reserves: Mar.28 |116,574 735,392 125,569 226,911 74,696 67,055 103,588 72,925! 75,823 68,737 38,641 1138,394 2,142,305 Apr. 4 1107,533 779,865 1128,701 212,843 73,833 67,055 |386,249 !71,349I 64,292 73,077 41,184 144,969 2,150,950 Apr.ll 1121,455 697,747 !l29,980 2J8,281 73,775 72,300 1417,085 !78,638! 73,307 73,970 34,287 -152,075 12,142,880 Apr.18 jll6,303 , 734,509 i 126,010 204,863 72,392 74,126 !422,944 !73,762i 72,029 72,528 33,828 158,863 12,162,157 Apr.25 1112,610 ! 747,072 1125,952 214,971 68,946 68,424 .424,901 !75,438i 67,899 75,976 32,072 1154,955 2,169,216 Legal tender notes, silver, etc.: | Mar.28 ! 6^310 53,089 ! 324 1,089 358 1.010 : 1,206 i 2,155 1 115 i 112 2,195 j 256 68,219 Apr.4 ! 6,176 52,784 i 229 1,116 484 1J061 I 981 12,178 i 112 I 114 2,237 i 206 67; 678 Apr.ll j 6,082 53,659 : 276 1,068 547 1,185 ; 1,370 ! 2,228 ! 119 i 124 2,219 ! 232 69,109 Apr.18 ' 6,371 ! 52,502 | 320 1,181 587 1,3C8 ! 1,353 ! 2,248 130 I 80 2,273 i 289 68,702 Apr.25 j 6,150 j 54,539 I 643 1,302 543 1,348 ! 1,321 ; 2,279 72; 137 2,275 i 327 70,936 Total cash reserves: j i Mar.28 1122,884 ' 788,481 !125,893 i228,000 75,054 68,065 ^404,794 ! 75,080 75,938 ;j 08,849j 40,836 ! 136,65012,210,524 Apr.4 1113,709 832,649 1128,930 213,959 74,317 68,116 387,230 !73,527 64,404I 73,191! 43,4211145,17512,218.628 Apr. 11 127,537 751,406 :i30,25G ;219,349 74,322 73,485 418,435 j 80,866 73,420i 74,094i 30,506152,30712,211,989 Apr. 18 122,674 787,011 !l2G,330 120(5,044 72,979 75,494 ,424,297 ! 76,010 72,159! 72,008! 30,101j159,152 2,230,858 Apr.25 118,760 801,611 1126,595 '216.273 69,489 69,772 .426,222 I 77,717 67,971! 76.113! 34,347,155,282 2,240,152 Bills discounted: m Secured by Government war i obligations 1— Mar.28 148,867 601,987 172,914 i 114,559 86,556 65,256 199,278 i66,536 28,593 50,173I 21,918! 74,3731,691,010 Apr.4 148,631 628,697 1109,249 120,577 86,182 60,836 1206,595 I73,806 44,707 40,559 14,594i 74,483 1,674,916 Apr.ll 151,733 692,682 174,204 131,219 89,157 67,952 202,040 ;73,068 42,040 43,405 23,240 70,719 1,767,459 Apr.18 ,1 48,,018 671,095 |16G,448 120,582 83,080 68,975 1200,298 I71,320 37,069 45,370 21,9101 78,995 1,720.960 Apr.25 .....1157,068 685,022 1182,109 122,102 91,138 70,682 195,872 j71,774 37,705 42,369 26,350 78,421 1,7(K)J 672 All other- ! Mar.28 5,053 20,500 12,375 ; 2,332 13,798 14,017 15,367 i11,820 1,480 41,050 29,393 19,045 195,230 Apr.4.. 4,849 25,572 13,182 j 3,022 12,902 13,516 16,545 i10,896 1,459 41,812 29,747 19,564 193,066 Apr. 11 5,564 31,587 I 13,186 j 7, 11,112 12,805 10,134 !9,620 3,431 42,643 28,848 18,340 200,465 Apr. 18 5,864 28,744 ! 14,088 ; 8,469 9,472 10,976 !17,701 i 9,325 7,294 43,471 29,283 16,027 201,314 Apr. 26 j 5,376 24,045 ; 9,501 i 5,935 11,692 11,474 i16,510 !9,074 9,552 42,855 28,591 15,135 189,740 ^Includes bills discounted j for other Fed-eral Reserve i Banks: | Apr. 11 j 15,950 ! ! 29,980 : 40,582 : 15,000 ' !. 101,492 Aor.lS.. i 1 1 0 0 , , 0 00 0 0 0 I i I ' 2 25 0 ; ,0 o 0 o 0 o . J i j i 5 5 3 0 , ,9 5 ( 6 5 0 4 i ' 1 1 0 0 , , 0 0 0 0 0 0 l I i ! 1 \ . 9 9 8 0 , ,9 5 6 6 4 0 Apr.25 i , Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

500 FEDERAL RESERVE BULLETIN. MAY 1, 1919. Resources and liabilities of each Federal Reserve Bank at close of business on Fridays, Mar. 28 to Apr. 25, 1919—Contd. RESOURCES—Continued. {In thousands of dollars; i. e., 000 omitted.] I I Bos- 1 New Phila- Cleve- Rich- At- Chi- St. Minne- Kansas San ! ton. •• York. delphia. land. mond. lanta. cago. Louis. apolis. City. Dallas. Fran- i Total. Cisco, i Bills bought in open market: Mar.28 15,425 41,329 1 2,270 37,452 7,155 6,527 i 41,2.14 13,453 29,466 8,366 1,783 43,667 i 248,107 Apr.4 7,152: 55,612 | 3,192 32,694 7,420 6,166 ; 39,291 13,334 26,594 8,846 2,173 38,316 • 240,790 Apr.ll 8,032: 57,017 1 1,021 29,719 7,170 5,741 ! 31,173 ! 11,052 23,841 7,394 1,923 34,507 j 218,590 Apr.18 6,402: 54,730 914 24,017 6,705 5,577 I 27,548 ! 8,476 21,229 5,479 1,888 33,920 ! 190,885 Apr. 25 9,694, 46,903 826 21,254 7,474 5,713 j 24,556 | 5,976 18,781 4,273 1,813 38,559 i 185.822 United States Government long- i ! i term securities: Mar.28 538 1,306 ! 1,385 1,083 ! 1,234 378 | 4,477 ! 1,153 116 3,967 2,633 j 27,138 Apr.4 538: 1,306 1,385 1,083 1,234 377 4,476 j 1,153 116 8,867 i 3,967 2,632 I 27,134 Apr.ll 540 ! 1,306 1,385 1,083 1,234 377 4,476 1,153 116 8,867 3,967 2.632 ! 27,136 Apr.18 539! 1,306 1,385 1,083 1,234 377 1 4 477 | 1,153 116 8,867 3,967 2.633 I 27,137 Apr. 25 539 I 1,305 1,385 1,089 1,234 377 ! 4,476 ! 1,153 116 8,867 3,967 2,033 i 27,135 United States Government I short-term securities: Mar.28 14,416 j 64,088 15,330 14,076 5,375 8,474 16,612 ! 10,068 9,236 6,014 4,400 5,708 173,797 Apr.4 15,416 i 64,873 16,356 14,048 5,375 8,474 16,612 ! 11,568 9,078 5,934 4,400 6,512 178,646 Apr.ll 15,416 1 69,544 j 16,2S1 14,416 5,360 8,474 17,612 12,068 8,809 6,248 4,400 7,083 185,711 Apr.18. 16,416i 69,521 ! 17,280 16,031 5,360 8,474 18,612 12,068 8,819 6,013 4,400 6.044 189.038 Apr. 25 16,716 68,821 17,276 15,498 5,360 8,974 19,612 13,068 6,479 4,900 5,973 191,501 All other earning assets: Mar.28 3 3 Apr.4 3 3 Apr.ll 22 22 Apr.18 Apr. 25 Total earning assets: , Mar. 28.'. 184,299 798,210 1204,274 169,502 114,118 ! 94,655 276,948103,030 68,891 114.471 61,461 145,426k335,285 Apr.4 176,586 776,060 i203,364 ! 171,424113,113 I 95,372 ;283,519 110,757 81,954 H06;018 54,881 141,50712,314,555 Apr. 11 181,285 852,056 1206,0771183,706 114,033 I 95,349 ,271,435 108,961 78,237 |1O8,579 62,378 1139,287;2,399,383 Apr.18 177,839 825.996 1200.715 1176,182 106,451 : 94,379 '268,636 102,342 74,527 J109.200 61,448 i137,61912.335,334 ApT. 25 189,393 826,096 211', 157 165,872 116,898 ! 97,220 1261,026101,045 74,978 j104)843 65,621 (140,721|2;354;S70 Bank premises: I Mar. 28 800 3,302 500 100 295 1 217 2,936 541 400 221 400 9,712 Apr.4 1 800 3,302 500 100 296 : 217 2; 936 541 400 221 400 9'. 713 Apr.ll ! 800 3,372 500 875 296 j 217 541 400 221 400 10', 558 Apr.18 • 800 3,372 500 875 296 1 217 2,936 541 400 221 ! 400 10,558 Apr. 25 i 800 3,372 500 875 312 I 217 541 400 221 I J00 10.574 Uncoliccted items and other de- I ductions from cross deposits: j j Mar.28 1 54,387 161,262 a6n9 ,a6an6 2' 49,675 50,241 ! -10,010 68,694 43,142 20,161 55,536 17,892 I 29,404 660,066 Apr.4 ! 52,616 166,955 65,0191 46,056 45,713 ! 29.745 85,184 47,328 15,078 47,282 17,231 • 26,752 644,959 Apr.ll ! 55^912 162.866 61,377' 43;026 41,712 i 31', 844 80,795 44,079 18,727 49,408 18,560 ! 2S.078 636,384 Apr.18 • ! 62,349 174.489 49,683i j! 5^i4 ,p;5ii46 51,243 ; 32.339 81,038 45,072 11,175 i 51,515 22', 493 I 19.504 655,446 Apr. 25 51,099 157.974 64,377 ! 5(X 791 41,799 ! 30,512 77,437 41.034 13.580 I 49,065 27,173 ! 251770 830,S14 5 per cent redemption fund ; against Federal Reserve bank • notes: • Mar.28 j 716 1,830 637 279 i 401 106 407 226 ! 688 345 7,067 Apr.4 | 716 1,586 825 671 231 ; 437 2S2 404 282 ! 656 346 856 <>'. 792 Apr.ll j 745 1.800 825 727 162 ! 415 226 474 233 ! 089 334 358 6,988 Apr.18 1 816 L812 825 875 90 ; 441 1,426 520 255 I 702 334 358 8,454 Apr. 25 .-I 816 l',836 850 827 65 ! 423 1,266 487 211 I 689 348 358 8,176 All other resources: ! Mar.28 417 1,745 672 463 352 i 612 732 204 113 ! 408 704 I 852 7,274 Apr.4 j 182 1,818 829 496 1,078 i 206 727 211 135 416 770 ! 870 7,738 Apr.ll , 212 1,992 1,089' 451 506 i 205 570 247 122 456 654 j 828 7,332 A Ap p r r . . 1 2 8 5 ! j 2 2 6 8 4 8 1 1 , , 8 7 4 0 6 6 1 1 3 4 9 5 7 2 2 2 1 1 , , 3 0 5 9 1 6 , 3 25 4 1 7 6 7 9 2 9 7 3 2 0 7 4 4 1 1 3 7 2 1 4 5 7 1 4 4 6 7 6 7 0 0 • j 1,0 8 2 5 7 9 8 7 , , 3 9 0 95 1 Total resources: i Mar.28 |363,503 11,754,830 1401,776 448.377 240,339 [203,960 754,510 1222,404 165,329 ,240,352 121,459 ;313,089 jo, 229,928 Apr.4 1344,609 (1,782,370 i399,467 432; 706 ;234,748 1194,093 759,878 ',232,768 161,853 '227,963 116.870 1315,060 (5,202,385 Apr.ll '366,491 (1,773,492 J400,124 448,134 '231,031 201,515 1774,397 1233,168 170,745 '233,626 (118,653 '321,258 15,272,634 Apr.18 1, 364,, 766 11,794,386 ,378,751 438,919 i232,410 203,217 779,032 224,759 158,248 1234,899 1121,367 1317,892 5,248,646 Apr. 25. 361,132 jl, 792,735 '404,468 435,093 j229,659 198,395 1769,614 221,128 156,911 |231,624 128,370 1323,558 5,252,687 1 Includes bankers' acceptances bought from other Federal Reserve Banks: With th eir indorsement- Apr. 11 i 10,048 1,753 i. 186 11,987 Apr.18 j 9,212 744 1. 187 10,143 Apr. 25 ! 6,718 1 254;. 187 7,159 Without their indorsement—; Apr.ll ! 1,050 L 5,497 ! 11,190 24,566 Apr.18 i 4,854 I 9; 317 . 3,170 17,341 Apr. 25 3,706 ' 8,071 .; 14,603 26,380 i I : r 2 Includes Government overdraft of $630,000. 3 Includes Government overdraft of 8640,000. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MAY 1,1919. FEDERAL RESERVE BULLETIN. 501 Resources and liabilities of each Federal Reserve Bank at close of business on Fridays, Mar. 28, to Apr. 25, 1919—Contd. LIABILITIES, [la thousands of dollars; i. e., 000 omitted.! I B to o n s- . Y N o e r w k. I ! d P e h lp i h la ia - J | C la le n v d e . - m R o ic n h d - . I ! la A n t t - a. c C a h g i o - . Lo S u t. is. M ap i o n l n is e . - K C a i n ty sa . s F c S i r s a a c n n o - . Total, I Capital paid in: Mar. 28 6,775 ; 20,928 7.587 j 9,218 4,113 3,195 11,371 | 3,825 2,970 3.740 3,198 4,721 81,641 Apr. 4 6.783 I 20,929 7,587 : 9.218 4,112 3,190 11,406 I 3,825 2,971 3; 740 3,198 4,699 81,858 A A Ap p p r r r . . . 2 l 1 8 5 1 6 6 8 , , . 7 7 7 9 8 8 3 4 4 , < 2 2 2 0 0 1 , , ,0 9 9 9 5 5 9 6 6 7 7 7 , , , 5 5 5 8 8 8 5 5 5 | 9 9 9) , , 2 2 2 0 2 1 9 5 0 4 4 4 , , , 1 1 1 8 8 6 4 0 5 3 3 3 , , , 2 1 2 0 9 3 1 2 6 1 1 1 1 1 1 , , 4 4 4 0 0 1 4 4 8 3 3 3 , , , 8 8 8 2 2 2 8 6 6 2 2 2 , , , 9 9 9 7 7 7 7 4 8 3 3 3 , , , 7 7 7 4 4 4 8 2 9 3 3 , , 2 2 0 0 1 0 4 4 4 , , , 7 7 6 0 0 9 2 2 8 8 8 8 1 2 1 , , , 7 0 7 7 1 5 4 5 0 Surplus fund: Mar. 28 2,996 i 21,117 2,608 I 3,552 2,196 1,510 416 1,603 1,415 2,421 1,184 2,448 49,466 Apr. 4... 2,996 ! 21,117 2,608 3,552 2,196 1,510 §>416 1,603 1.415 2,421 1,184 2,448 49,466 Apr. 11 2,996 ] 21,117 2,608 3,552 2.196 1,510 6416 1,603 1,415 2,421 1,184 2,448 49,466 Apr.18 2,996 I 21,117 2,608 3,552 2)196 1,510 6,416 1,603 1)415 2,421 1,184 2,448 49,486 Apr. 25 2,996 i 21,117 3,552 2,196 1,510 6,416 1,603 1,415 2,421 1,184 2,448 49,466 Government deposits: 1 Mar.28 28,557 ! 51,959 13,545 18,252 7,848 2,865 918 9,297 5,358 10,930 7,195 11,423 168,147 Apr. 4 12,235 25,079 7,312 5,072 2,060 2,915 187 8,948 3,356 6,769 4,151 6,924 85,008 Apr.ll 28,661 23,776 6,820 24,772 1,307 5,544 30,483 12,606 12,899 10,238 3,661 9,205 169,972 Apr.18 17,501 ! 17,169 5,005 12,928 3,888 20,681 7,304 5,075 6,284 4,351 6,375 106,561 Apr.25 j 11,182 i 23,189 8,904 8838 1,686 14,603 5,961 2,074 4,923 5,985 4,381 91,726 Dae to members reserve account: Mar.28 !l00,820 !065,138 94,259 il27,514 55,325 ( 45,064 240,013 58,709 50,336 78,013 37,673 78,303 1,631,167 Apr. 4 ! 94,919 j698,383 102,988 H31,585 54,134 42,13^4 -.«,„, *«„ j 05,013 48,391 66,819 38.607 82,140 1,655,298 Apr.ll ] 96.905 : 685.637 99,679 124; 603 53,561 '• 4o'.8.")() '223,6S0 i 59,668 ">0,498 67:322 37)421 83,869 1,628,693 Apr.18 ! 95,906 ; 707,853 93,438 ,126,462 51,635 i 45)401 i229.370 j 61,415 48,193 75)061 37,789 83,337 1,655,860 Apr.25..* 101,912 ! 702,830 103,265 |124,554 52,942 i 44,381 J231,043 ! 59,789 48,334 71,468 39,895 83,907 1,664,320 Deferred availa bilitv items: Mar.28 " i 41,420 i 119,110 60.680 ! 42,814 | 38,216 I 26,588 54,840 31,289 11,688 ?:(), 680 14.516 13,285 484,906 Apr. 4 i 41,228 1 126,755 54,117 j 39,375 j 36,767 20,307 62,657 33,70i 12,250 34,057 12) ?,oo 13,824 487,593 Apr: 11 ! 40,938 ! 124,228 58.681 i 37,803 | 35,651 22,242 52,444 36,264 8,933 36,230 16,456 17,280 487.153 Apr.18 146,174 ] 127,069 4"3~, 1"7~2 !i 42,3'"5"8 ' I '4 2,005 24,667 63,185 32,366 6,915 34,316 18,568 15,993 496) 788 Apr.25 1 40,800 118,009 56,151 ! 41,402 i 3S,190 22,828 54,184 33,438 8,897 34,913 22,459 20,534 ±01, 005 O ther deposits, including foreign government credits: " Mar.28 127 ! 105,393 7SS i 602 i 181 2, 111 575 ! 64 i 114 6,271- 117,271 Apr. 4 341 j 109,978 986 i 320 | 57 2,108 303 279 ! 146 77 5,752 120.426 Apr.ll , 1,736 110,119 788 i 370 I 83 2,334 648 216 j 310 85 5,744 128)48i Apr.18 3,290 118,400 752 j 442 ! 107 1,844 337 241 ! 255 56 5,506 131,307 Apr. 25 (545 122,422 658 j 327 i 232 1,924 327 106 ''• 879 I 63 7,124 135,057 Total gross deposits: Mar.28 170,924 941,600 169,272 1188,982 ! 101,439 74,678 297,882 I 99,710 67,957 1120,267 59,498 109,282 2,401,491 Apr. 4 148)723 960,195 185,103 1176,352 93,040 65,413 295.137 107,965 64,276 1107,791 55,390 108,640 2,348,325 Apr.ll 168,240 949,760 165,971 i 187,548 90,567 73,719 308,941 109,186 72,546 ! 114,100 57,623 116,098 2,414,299 Apr.18 162,871 970,491 142,367 i 182,190 93,717 74,063 315,080 101,422 80,424 |115,916 60,764 111,211 2,390,516 Apr. 25 1154,539 986,450 168,978 1175,121 91,182 j 68,927 301,754 99,515 59,711 |112,183 68,4.02 115,946 2,382,708 Federal Reserve notes in actual circulation: Mar.28 |166,874 723,160 206,086 1232,612 125,198 ; 115,975417,546 108,015 87,058 ! 09,615 50,107 188,500 2,521,776 Apr. 4 169,609 736,433 208,696 |229,221 128)946 [115,173 425,120 109,222 87,151 I 99,520 49,565 191,014 2,5-17,670 Apr.ll 171,265 738,128 206,336 '233,042 127,604 114,078 -125,279 107,763 87,692 ! 98,740 49,011 189, 650 2,548,588 Apr.18 174,092 738,169 208,296 1227,698 125,792 115,216 423,145 |l06,357 87)221 I 98)063 48,523 191,129 2,543,70 i Apr.25 177,737 738,812 206,593 '230,595 125,391 (115,333 426,455 ,104,095 86,481 ! 98,420 47,728 791,912 2,549,552 Federal Reserve bank notes in circulation—net liability: Mar.28 ." 13,555 33,628 14,372 ! 12,376 5,238 7,709 19,116 8,377 5,288 I 12,933 6,468 8.480 145,540 Apr. 4 14,007 34,497 15,170 j 12,614 5,249 7,856 19,440 9,108 5,332 I 13,010 6,504 6) 482 149,449 Apr.ll 14,710 I 33,920 15,526 ' 1' 2", 9'8"1 5,217 8,017 19,860 9,805 5,377 I 13,055 6,555 6,537 151,560 Apr. IS 15,396 33,808 15,668 14,383 5,185 8,200 20,333 10,521 5,430 i 13)101 6,5S1 0,468 155,074 Apr.25 16,010 34,775 16,276 14,590 5,246 8,282 20,813 11,014 5,511 I 13,170 6&M 6,495 158,848 All other liabilities: Mai-. 28 2,379 | 14,397 1,851 i 1,607 1,155 893 2,179 871 641 !1,378 1,004 1,658 30,014 Apr. 4 2,431 I 9,199 2,003 j 1,719 1,205 951 2,359 955 70S i 1)481 1,029 1,777 25,817 Apr.ll 2,496 9,611 2,098 j 1,801 1,282 999 2,483 985 741 1,568 1,080 1,827 26,971 Apr.18 2,627 9,845 2,227 ! -1 ,887- 1,340 1,027 2,654 1,030 777 1,850 1,114 1,934 28,112 Ai>r.25 3,057 10,482 2,428 2.010 1,460 1,107 2 772 1,073 816 1,681 1,157 2,055 30,098 Total liabilities: Mar.28 . 363.503 11,754,830 401,776 44=88,,377 210,339 203,960 751.510 (222,404 165,329 ;2iO,352 ,121,459 313,089 5,220,92S Apr. 4 .;3i4.)G99 (1, 782,370 399.467 13!?2,7()« 234,748 194,093 759)878 232,788 161,853 i227,963 118,870 315,060 5,202) 385 Am*. 11 ,368,191 ,1,773,492 100,124 170,745 '233. 626 118,653 321,258 5,272,63! .\pr.l8 364,768 ',1,794,386 378,751 158,248 1234)899 121,367 317,892 5,248.616 Apr.25 361,132 11,792,735 104.468 156,'Jll '231,624 128,370 323,558 5.252', ftS7 MEMORANDA. Contingent liability as indorser I on- Discounted paper , counted with other Fed- ! eral Reserve Banks— Apr. 11 101,492 Apr. 18. 98,560 Apr. 25. 90.964 Bankers' acceptances sold to other Federal Reserve I Banks- Apr. 11. 11,987 Apr. 18. 10,143 Apr.25. 7.159 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

502 FEDERAL RESERVE BULLETIN. MAY 1, 1919. 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 d a to y s 6 . 0 61 to 90 O d v a e y r s 9 . 0 Total. Bills discounted: Mar. 28 1,529,010 115,670 51,427 21,252 1,886,240 Apr. 4 , 1,531,100 154,729 i 108,788 52,050 21,315 1,867,982 Apr. 11 ! 1,731,817 57,467 j 103,634 52,742 22,264 1,967,924 A•-p-r . -1~8 ] 1,667.271 76,460 i 96,412 58,325 23.806 1,922,274 Aw. 25 1,648,426 74,823 | 80,574 123,022 23,567 1,950,412 Bills bought: Mar. 28 78,600 71,998 81,882 15,567 8; Apr. 4 75,751 61,563 87,303 16,173 240,790 Apr. 11 78,832 50,859 78,501 ft), 398 218,590 Apr. 18 68,050 46,792 67,807 14,176 196,885 Apr. 25 60,702 51,327 52,688 21,105 1S5,822 United States short-term securities: Mar. 28 23,919 518 6,506 142,854 173,797 Apr. 4 24,704 4,078 3,890 145,974 178,646 Apr. 11 29,375 1.611 3,624 3,749 147,352 185,711 Apr. 18 29,896 '250 3,826 3,184 151,882 189,038 Apr. 25 28 738 103 6,715 373 155,572 191,501 Municipal warrants: Mar. 28... Apr.4 3 Apr. 11 Apr. 18 Apr.25 FEDERAL RESERVE NOTES- Federal Reserve note account of each Federal Reserve Bank at close of business on Fridays, Mar. 28 to Apr. 25, 1919. [In thousands of dollars; i. e., 000 omitted.] Boston. Y N o e r w k. P p d h h e i i l l a - a . - C la le n v d e . - m R o ic n h d - . i I la A n t t - a. c C a h g i- o. Lo S u t. is. M ap i o n l n is e . - K C a i n t s y a . s Dallas. F ci r s a c n o - . Total. Federal Reserve notes received from agent—net: Mar. 28 171,826 794,189 215,532 245,073 130,456 120,080 444,561 120,161 88,120 105,722 51,449 218,539 2,705,708 Apr. 4 177,267 799,684 215,768 242,122 132,214 118,288 446,207 123,178 88,346 106,537 51,058 214,428 2,711,089 Apr. 11 178,545 810,386 215,400 242,718 131,057 117,487 449,881 122,378 89,255 104,674 50,452 211,804 2,724,097 Apr. 18 180,825 820,434 2L8,606 240,467 129,662 119,083 452,599 121,079 88,791 103,109 49,772 211,846 2,736,384 Apr.25 184,172 814,163 216,536 2-41,063 129,508 119,319 452,418 118,528 87,973 103,611 49,184 215,928 2,732,403 Federal Reserve notes held "by bank: Mar. 28 4,952 71,029 9,446 12,431 4,258 4,105 27,015 12,146 1,002 G, 107 1,342 30,039 183,932 Apr. 4 7,658 68,251 9,072 12,901 3,208 3,115 21,087 13,950 1,195 6,017 1,485 23,414 160,419 Apr. 11 7,280 72,258 9,064 9,676 3,453 3,409 24,602 14,615 1,563 5,934 1,441 22,214 175,509 Apr. 18 6,733 82,205 10,370 12,769 3,870 3,867 29,445 14,722 1,507 5,106 1,249 20,717 192,G80 Apr.25 6,435 75,351 10,468 4,117 3,980 25,903 14,433 1,492 5,191 1,456 24,016 182,851 Federal Reserve notes in actual circulation: Mar. 28 166,874 723,160 206,086 232,642 126,198 115,975 417,540 108,015 87,058 99,615 50,107 188,500 2,521,770 Apr.4 169,609 736,433 205.090 229,221 128,946 115,173 425,120 109,222 87,151 99,520 49,565 191,014 2,547,670 Apr. 11 171,265 738,128 206,336 233,012 127,004 114,078 125,279 107,703 87,692 98,740 49,011 189,050 2,548,588 Apr. 18 174,092 738,169 208,296 227,098 125,792 115,210 123,145 106,357 87,224 98,003 48,523 191,129 2,543,704 Apr.25 177,737 738,812!20G,593 230,595 125,391 115,333 426,455 101,095 86,481 98,420 47,728 191,912 2,549,552 Gold deposited with or to credit of Federal Reserve agent: Mar. 28 54,059 208,301I 55,305 140,971 40,703 42,119 209,506 40,737 51,10-1 38,725 17,565 93,915 1,113,070 Apr.4 55,500 281,596! 71,640135,119 38,521 42,577 239,512 43,903 30,730 38,140 17,131 102,804 1,100,173 Apr. 11 53,778 279,939 70,073 133,975 35,944 41,291 242,780 41,704 30,139 36,877 17,898 98,010 1,082,444 Apr. 18 52,058 277,380 03,488 130,845 33,749 42,837 245,890 42.564 29,325 35,372 17,427 109,022 1,085,519 Apr.25 60.405 276,335 76,069 138,796 31,515 43,699 1255,723 IO!393 28,207 34,614 10,789 107,404 1,109,949 Paper delivered to Federal Reserve agent: Mar. 28 732,816 161,480 153.228 105,152 78,973 255,859 84,702 58,989 53,094 127,201 2,080,228 Apr. 4 160,632 709,881 151,876 154,206 104,308 82,061 202,431 88,787 70,315 91,217 46,514 115,032 2,037,260 Apr. 11 165,329 781.206 148,025 166,890 101,340 81,278 249,347 85,G2S 66,075 93,442 54,011 118,439 2,111,610 Apr. 18 160,884 755;169 152,730 158,223 99,843 80,342 245,547 88,975 62,070 94,320 53,081 113,540 2,004,724 Apr.25 172,138 755,970 1142,687 148,517 102,398 80,278 236,938 86,486 61,143 89,497 56,754 111,300 2,044,106 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MAY 1, 1919. FEDERAL RESERVE BULLETIN. 503 Federal Reserve note account of each Federal Reserve agent at close of business on Fridays, Mar. 28 to Ayr. 25, 1919, [In thousands of dollars; i. e., 000 omitted.] B to os n - . m R o ic n h d - . i la A nt t a - . j C ca h g i o - . Lo S u t. is. M ap i o n l n i e s. - K C a i n ty s . as Dallas. F c S i r s a a c n n o - . Total. FEDERAL RESERVE NOTES. Received from Comptroller: Mar. 28 278,320 1,411,780 341,420 338,940 214,820 212,960 1570,640 180,600 124,880 159,700 101,960 256,420 4.192,440 Apr. 4 28(3,920 1,418,380 347,220 338,940 215,620 212,960 1574,560 181,320 124,880 159,700 101,960 256,420 4j 212,880 Apr. 11 '286,400 1,446,980 347,220 341,740 220,820 213,360 1579,400 184,320 126,880 159,700 101,960 259,620 4,268,400 Apr.18 1291,040 1,473,280 352,820 342,620 221,220 217,000 1585,360 184,6,60 126,880 159,700 101,960 260,020 4,316,560 Apr. 25 1302,640 1,479,980 352,820 343,020|222,220!219,000 |587,760 190,220 128,880 160,700 101,960 269,320 |4,358,520 Returned to Comptroller: I Mar.28 ! 81,354 473,991 103,688 60,107 ! 55,004! 37,965 ! 90,239 44,269 25,770 39,598 27,196 31,881 jl, 071,062 Apr. 4 ! 82,913 486,296 106,352 63,558 57,246 j 38,507 i 93,633 45,102 26,144 40,183 27,630 35,992 1,103,556 Apr.ll 85,635 497,594 110,920 66,702 59,823 ! 39,793 j 97,279 47,302 26,735 41,446 28,3.63 41,756 11,143,348 Apr. 18 88,355 509,246 113,554 69,833 62,018 40,747 i 99,690 48,941 27,549 42,951 28,833 42,174 ! 1,173,891 Apr.25 ! 91,008 522,217 116,924 72,137 64,252 41,881 104,902 51,112 28,167 43,709 29,471 45,392 1,211,172 Chargeable to Federal Reserve! agent: • Mar.28 1196,966 937,789 237,732 278,833 1159,816i 174,995 480,401136,331 99,110 120,102 74,764 224,539 3,121,378 Apr. 4. 198,007 932,084 240,868 275,382 (158,374 174,453 1480,927136,218 98,736 119,517 ! 74,330 220,428 3,109,324 Apr.ll 200,765 949,386 236,300 275,038 160,997 173,567|482,12i 137,018 100,145 118,254 i 73,597 21.7,864 3,125,052 Apr.18 202,685 964,034 239,266 272,787 il59,2021176,253 (485,670135,719 99,331 116,749 I 73,127 217,846 3,142,669 Apr.25 211,632 957,763 235,896 270,883 157,9681177,119 J482,858139,108 100,713 116,991 j 72,489 223,928 3,147,348 In hands of Federal Reserve ! agent: Mar.28 25,140 143,600 22,200 33,760 29, 360 54, 915 35,840 16,170 19,990 14,380 j 23,315 6,000 415,670 Apr.4 20,740 132,400 25,100 33,260 26 160 56, 165 34,720 13,040 10,390 13,980 ! 23,280 6,000 395,235 Apr.ll 22,220 139,000 20,900 32,320 29 940 56, 080 32,240 14,640 10,890 13,580 j 23,145 6,000 400,955 Apr.18 21,860 143,600 20,600 32,320 29 540 57, 170 33,080 14,640 10,540 13,580 i 23,355 6,000 406,285 Apr.25 27,460 143,600 19,360 29,820 28 460 57 800 30,440 20,580 12,740 13,380 | 23,305 8,000 414,945 Issued to Federal Reserve Bank less amount returned to Federal Reserve agent for redemption: Mar.28 171,826 794,189 215,532 245,073 130,456 ! 120,080 444,561120,161 88,120 105,722 51,449 218,539 2,705,708 Apr. 4 177,267 799,684 215,768 242,122 132,214 1118,288 1446,207123,178 88,346 105,537 51,050 214,428 2,714,089 Apr.ll 178,545 810,386 215,400 242,718 131,057 1117,487 ;449,881 122,378 89,255 104,674 ! 50,452 211,864 2,724,097 Apr.18 180,825 820,434 218,660 240,467 129,662 '119,083 (452,590 121,079 88,791 103,169 ! 49,772 211.846 2,736,384 Apr.25 184,172 814,163 216,536 241,063 129,508 i 119,319 1452,418118,528 87,973 103,611 | 49,184 215,928 2,732,403 Collateral held as security for outstanding notes: Gold coin and certificates on hand- Mar. 28 j 183,740 33,270 2,504 !... 13,052 12,581 245,147 Apr.4 i 183,740 I •25; 870 2,504 !... 13,052 12,581 237,747 Apr.ll I 183,740 24,870 2,504,... 13,052 11,581 235,747 Apr.18 1 183,740 21,870 2,504 13,052 11,581 232,747 Apr .25 1 183,740 25,625 2,500 13,052 11,581 236,498 Gold redemption fund— j Mar.28 9,059 14,561 12,415 12,701 2,763 1,615 5,841 806 2,052 3,365 2,799 10,656 78,633 Apr.4 11,500 12,856 14,751 14,249 2,521 3,073 5,447 2,973 2,178 2,780 2,866 13,326 88,520 Apr.ll 9,778 11,198 15,183 14,106 1,944 2,787 5,801 3,773 1,587 3,517 3,133 11,731 84,538 Apr.18 9,058 8,646 12,549 13,975 1,749 3,333 5,391 2,134 2,773 2,012 2,662 11,313 75,595 Apr.25 11,405 17,595 14,180 13,171 1,515 2,199 5,178 1,963 2,155 3,254 2,524 9,690 84,829 Gold settlement fund, Fed- j era! Reserve Board— | Mar.28 1 45,000 70,000 !,890 915,000 38,000 38,000 263,665 39,931 36,000 35,360 2,185 83,259 789,290 Apr. 4 i 44,000 85,000 1,889 9|5,000 36,000 37,000 234,065 40,930 15,500 35,360 1,684 89,478 773,906 Apr.ll ! 44,000 85,000 1,889 9*5,000 34,000 36,000 236,985 37,931 15,500 33,360 3,184 86,309 762,158 Apr.18 43,000 85,000 5,889 915,000 32,000 37,000 240,505 40,430 13,500 33,360 3,184 98,309 777,177 Apr.25 49,000 75,000 61'.,889 10 0,000 30,000 39,000 25G,545 38,430 13,000 31,360 2,684 97,714 788,622 Eligible paper minimum required—1 Mar.28 1117,767 525,888 160,227 104,102 77,961 175,055 79,424 37,016 66,997 33,884 124,624 1,592,638 Apr.4 121,767 141,128 107,003 93,693 75,711 206,695 79,275 57,616 67,397 33,919 111,624 1,613,916 Apr.ll 124,767 530,448 145,328 108,742 95,113 76,196 207,095 80,674 59,116 67,797 32,554 113,824 ,641,654 Apr.18 128,767 543,048 150,228 109,622 95,913 76,246 206,694 78,515 59,466 67,797 32,345 102,224 1,650,865 Apr. 25 1123,767 537.828 140,467 102,267 j 97, 75,620 196,695 78,135 59,766 08,997 32,395 108,524 ,622,454 1 For actual amount, see "Paper delivered to Federal Reserve agent," on p. 502. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

504 FEDERAL RESERVE BULLETIN. MAY 1, 1919. Amounts of Federal Reserve notes received from and returned to other Federal Reserve Banks for redemption or credit during the period Jan. 1 to Mar. 31. 1919. Boston. New York. Philadelphia. Cleveland. Richmond. i Received. ! Returned. ! Received. Returned. Received. Returned. Received. Returned. I Received. Returned. I j Boston ! 88,020,000 j $8,519,100 $776,100 §967,000 81,282,150 $324,100 $1,222,450 8602,750 New York i8,173,500 !$14,850,750 10,260,050 16,545,000 7,292,350 5,783,150 8,636,450 7,197,500 Philadelphia... 926,000 1,657,200 16,375,000 16,923,250 3,075,000 2,611,000 2,515,000 4,676,500 Cleveland 352,750 1,287,950 6,132,650 7,379,950 "2*323*866' "3* 075," 666' 1,866,100 3,124,500 Richmond 593,500 1,202,850 7,216,250 8,666,250 1,991,250 2,480,000 3,129,500 1,775,850 Atlanta 431,020 463,050 3,743,330 4,391,650 666,600 727,000 ,1,367,770 495,900 1,882,250 Chicago 665,000 1,454,550 8,089,650 529,000 1,648,000 I 4,091,000 4,957,300 1,269,500 2,754,500 St Louis 171,445 284,350 1,980,900 156,575 393,000 1,196,415 440,850 600,165 901,250 Minneapolis... 70,500 279,650 546,000 1,165,400 56,500 282,000 217,500 486,550 118,000 983,500 Kansas City... 72,300 386,700 649,800 1,778,350 57,150 406,000 300,300 408,750 190,400 874,750 Dallas 89,600 116,500 746,700 801,050 92,500 136,000 291,200 139,100 160,200 228,750 San Francisco., 270,790 291,700 1,981,555 3,110,300 161,820 250,000 535,460 226,350 326,610 203,75C Total. 11,816,405 22,275,250 | 52,633,460 ! 62,805,850 17,071,345 26,909,000 22,778,645 17,648,900 18,773,525 23,430,000 I Atlanta. Chicago. St. Louis. Minneapolis. Kansas City. Received. Returned. Received. I Returned. Received, j Returned. Received. Returned. Received. Returned. Boston §455,650 §426,070 SI, 450,650 1690,000 I 3281,250 $180,085 §278,050 877,500 8361,800 874,300 New York 4,253,550 3,782,580 8,045,050 5,680,000 •'1,966,050 '1,684,675 1,165,400 537,000 1,703,100 676,300 Philadelphia... 703,000 847,235 1,648,000 1,232,500 i 395,000 i 374,500 282,000 91,500 382,000 130,650 Cleveland 527,450 1,343,070 5,267,550 4,182,500 ! 491,700 !1,196,415 512,550 226,000 430,350 313,800 Richmond 1,892,250 1,810,150 2,758,500 1,266,500 | 898,250 j 602,425 983,500 114,000 801,250 193,900 Atlanta 2,147,715 1,264,500 I 2,513,495 2,376,785 388,730 90,500 683,450 305,150 Chicago 1,230,000 2,088,715 2,777,500 !5,791,525 4,244,000 2,863,500 3,821,000 1,681,950 St. Louis 2,369,285 2,490,495 "5," 783* 525' " 2," 852," 500*'. 467,540 197,500 2,437,730 1,370,650 Minneapolis... 92,000 379,230 2,891,500 4,215,500 191,000 I 465,940 546,500 474,550 Kansas City... 292,650 999,025 1,600,450 3,962,500 !1,317,650 j2,471,840 474,550 553,000 Dallas 919,150 1,313,100 736,400 764,000 i 873,000 i 1,484,285 136,450 111,000 1,115,850 760,450 San Francisco. 260,530 265,655 2,102,185 2,324,500 I 365,705 j 458,520 992,770 872,000 1,416,655 693,400 Total 12,995,515 15,745,325 34,431,525 28,435,000 12,070,600 j 17,086,995 9,925,540 5,733,500 13,699,685 6,675,10C Dallas. San Francisco. Total. Received. Returned. Received. Returned, i Received. Returned. Boston $111,700 888,250 $243,400 $320,340 I $14,483,200 812,269,495 New York 800,000 655,800 2,277,700 2,636,105 54,573,200 60,028,860 Philadelphia.. 136,000 125,950 252,000 433,835 ! 26,689,000 29,104,120 Cleveland 156,700 240,650 325,850 581,960 I 18,387,450 22,951,795 Richmond 215,750 145,800 163,500 415,490 I 20,643,500 18,673,215 Atlanta 1,034,350 891,650 226,455 311,880 ' 15,071,565 13,200,315 Chicago 726,000 631,400 1,925,500 2,404,270 i 26,794,000 34,365,360 St. Louis , 1,423,985 836,900 371,145 457,230 i 16,684,485 12,205,625 Minneapolis... 77,500 118,350 763,500 1,119,855 5,570,500 9,970,525 Kansas City.. 717,950 997,600 494,900 1,678,555 i 6,168,, 100 14,517,070 Dallas. 381,700 628,035 ' 5,542,750 6,482,270 San Francisco. 491,905 284,550 8,905,985 8,980,725 Total ! 5,891,840 5,016,900 7,425,650 10.987,555 j 219,513,735 242,749,375 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MAY 1, 1919. FEDERAL RESERVE BULLETIN. 505 CONDITION OF MEMBER BANKS. These increases apparently are due largely to investment by reporting banks in the newry issued Between March 14 and April 18 weekly re- bonds of the War Finance Corporation. ports of condition of about 770 member banks Aggregate holdings of United States war in 100 leading cities indicate a net reduction securities and war paper decreased from 4,035.3 of over 200 millions in their holdings of United millions on March 14 to 3,810.7 millions on States war securities, largely Treasury certifi- April 18 and constituted 26.6 per cent of the cates. Large decreases in certificate holdings loans and investments of all reporting banks, shown between March 14 and 21 follow the compared with 27.7 per cent on the earlier date. taking up by the Government on or about For the New York City member banks a decline March 15 of about 800 millions of tax certifi- of this ratio from 32 to 31 per cent and for the cates, while subsequent reductions are ap- member banks in all the 12 Federal Reserve parently due to the redemption by the Govern- Bank cities a decline from 29.1 to 27.8 per ment prior to maturity of the Treasury certifi- cent may be noted. cates due on May 5. The result of these opera- During the same period Government deposits tions is seen in a reduction of about 400 mil-fluctuated between a minimum of 452.8 millions in the certificate holdings of reporting lions on April 4 and 723.8 millions on April 11, banks by April 4. In consequence of the allot- subsequent to the certificate issue of April 10. ment of the ninth issue of certificates in antici- Other demand deposits (net) show a sharp depation of the Victory loan, holdings on the cline after March 14, undoubtedly as the result following Friday increased by 267.6 millions, and of the large income tax payments due on stood at 2,079.5 millions on April 18, compared March 15. An increase of 139 millions is shown with 2,241.2 millions on March 14. on April 18, the New York banks alone report- United States bonds other than circulation ing a gain under this head of 60.7 millions. bonds on hand indicate a practically steady For the four-week period there is shown a net though slow decline from 676.1 to 637.3 mil- loss of 125.3 in net demand deposits of all relions, the decrease of 38.8 millions reflecting porting banks. Demand deposits of the New largely the amount of Liberty bonds acquired York banks reached a high level of 4,357.5 during the period on the partial payment plan millions on April 4 and stood at 4,337.5 milby customers of the reporting banks. It is lions on April 18, or only slightly below the noteworthy that no decrease in bond holdings March 14 total. Time deposits show a steady is reported by the New York member banks. increase, the total on April 18, 1,714.2 millions, Loans secured by United States war obligations, being about 45.7 millions in excess of the total largely Liberty bonds, declined from 1,118.1 to shown on the earlier date. In harmony with 1,094 millions, liquidation of these loans being the decline in their deposits the banks report reported largely by tlie banks in the Federal Re- a decrease in their reserve balances with the serve Bank cities. All other loans and invest- Federal Reserve Banks from 1,298.3 to 1,276 ments show increase of 66.3 millions, of which millions, all classes of banks sharing in this 36.3 millions represent the increase of the mem- decrease. Cash in vault shows a nominal gain ber banks in the 12 Federal Reserve Bank cities. from 348.8 to 350 millions. 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 Mar. 21, 1919, to Apr. 18, 1919. 1. ALL REPORTING MEMBER BANKS. [In thousands of dollars; i. c. 000 omitted.]' Boston. Y N o e r w k. d P el h p i h la i * a. C la le n v d e . - m R o ic n h d - tl A an t- a. Chicago. Lo S u t. is. M ap i o n l n is e . - K C a i n ty sa . s Dallas. C F S i r s a a c n n o - . | | Total. I Number of reporting banks: Mar. 21., 106 90 47 i 101 37 53 772 Mar. 28 106 90 I 47 j 101 37 53 772 Apr. 4 106 90: 47 i 101 37 53 773 Apr. 11 106 90 I 47 ! 101 37 53 773 Apr. 18 106 90 ; 47 I 101 37 53 773 United States bonds to secure circulation: Mar. 21 14,402 48,165 11,594 40.882 i 25,190 15,265 I 19,911 16,908 6,820 13,984 18,275 35,685 267,081 Mar.28 14,402 48,836 11,597 40.883 i 25.190 15,265 I 19,911 16,908 6,820 13,984 18,275 35, 685 267, 756 Apr. 4 14,402 49,787 1.1,597 40,960 I 25'190 15,265 19,911 16.908 6,870 13,984 18,324 35,685 268,883 Apr. 11 14,402 49,896 11,597 40,915 ! 25,22015,265 19,911 16', 908 6,870 13,984 18,324 35.658 • 268,950 Apr. 18 14,409 j •19,671 | 11,597 ] 40,915 25,241 15,265 19'. 910 16 90* ti'.STO j 13,984 18,324 35; 685 268,779 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

506 FEDERAL RESERVE BULLETIN. MAT 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 Mar. 21. 1919, to Apr. 18, 1919—Con. 1. ALL REPORTING MEMBER BANKS—Continued. [In thousands of dollars; i. e, 000 omitted.] C la le n v d e , - m R o ic n h d - . la A n t t - a. Lo S u t. is. M ap i o n l n is e . - City. Dallas. F c S i r s a a c n n o - . Total. Other United States bonds, including Liberty bonds: Mar.21 19,606 281,004 37,369 72,335 48,094 31,674 64,398 21,150 10,931 23,695 20,272 34,913 665,441 Mar,28 19,408 281,649 37,295 70,264 47,722 30,300 62,180 20,789 10,826 26,985 20,257 33,150 680,825 Apr. 4 19,251 279,783 35,384 67,665 46,098 29,891 59,508 19,363 10,609 23,272 20,127 35,414 646,365 Apr. 11 19,075 284,715 34,826 67,676 46,699 29,900 57,743 18,609 10 701 22,773 20,327 34,449 647,493 Apr. 18 18,336 288,281 33,288 63,327 45,011 30,390 54,183 17,148 10,888 22,577 20,241 33,594 637,264 United States certificates of indebtedness: Mar.21 117,327 905,205 135,698 151,914 67,810 66,144 267,333 69,755 44,294 56,456 30,762 109,320 2,022,018 Mar. 28 97,053 848,462 130,978 142,273 67,038 63,950 255,061 66,679 43,152 49,905 30,677 105,445 1,900,673 Apr. 4 92,521 825,844 126,727 131,389 65,524 63,463 243,564 65,732 42,882 53,265 30,310 100,562 1,841,783 Apr. 11 113,501 985,191 141,931 133,681 75,177 70,805 261,568 73,463 49,283 57,637 36,135 111,068 2,109,440 Apr. 18 116,625 3:957,000 132,908 135,569 75,824 70,870 262,003 74,112 46,120 58,491 36,311 113,656 2,079,489 Total United States securities owned: Mar.21 151,335 1,234,374 184,661 I265,131 141,094 113,083 351,642 107,813 62,045 94,135 179,918 2,954,540 Mar. 28 130,863 1,178,947 179,870 j253,420 139,950 109,515 337,152 104,376 60,798 90,874 174,280 2,829,254 Apr. 4 126,174 1,155,414 173,708 240,014 136,812 108,619 322,983 102,003 60,361 90,521 68,761 171,661 2,757,031 Apr. 11 146,978 1,319,802 188,354 i242,272 147,096 115,970 339,222 108,980 66,854 94,394 74 786 181,175 3,025,883 Apr. 18 149,370 1,294,952 177,793 ! 239,811 146,076 116,525 336,096 108,168 63,878 95,052 74 876 182,935 2,985,532 Loans secured by United I I States' bonds and cer- I ! tificates: I j Mar.21 91,575 564,675 1142,744 ! 95,508 39,576 22,895 90,591 25,055 11.115 11,103 7,296 21,418 1,123,551 Mar.28 92,695 564,843 142,292 j 92,419 39,334 22,321 89,763 27,145 10,707 11,381 7,071 21,847 1,121 818 Apr. 4 ! 93,464 549,743 141,372 ! 92,330 39,350 22,460 89,229 26,427 10,889 12,221 7,164 22,102 1,106 751 Apr. 11 j 91,772 550,865 141,573 j 93,328 38,217 22,188 93,072 26,509 11.116 12,290 6,839 22,363 1,110,132 Apr. 18 ! 85,284 544,536 140,402 I 93,463 37,473 22,839 91,029 25,462 11,614 12,365 6,815 22,700 1,093,982 Other loans and invest- i ments: Mar.21 784,384 4,018,054 621,736 j 979,135 371,228 307,804 1,405,472 386,881 j, 1,976445,984 172,744 511,165 10,233,563 Mar.28 \ 780,975 4,019,748 623,251 i990,326 374,252 302,830 11,412,709 385,610 232,437 446,840 171,871 512,111 10,252,960 Apr. 4 ! 777,023 4,009,529 620,671 982,510 372,345 299,426 1,388,708 385,159 243,987 449,932 176,964 512,040 10,218)294 Apr. 11.. 780,162 4,039,017 613,398 986,070 371,980 302,908 1,386,878 388,035 244,860 444,667 176,880 502,522 10,237,377 Apr. 18 793,482 4,021,758 611,895 j 992,851 376,392 300,191 |1,401,535 388,940 248,054 441,388 177,030 513,196 10,266,712 Total loans and investments: Mar.21 1,027,294 5,817,103 949,141 1,339,774 551,898 443,782 |l,S47,705 519,749 302,136 551,222 249,349 712,501 14,311,654 Mar.28 1,004,533 5,763,538 945,413 ll, 336,165553,536 434,666 1,839,624 517,131 303,942 549,095 248,151 708,238 14,204,032 Apr.4 996,661 5,714,686 935,751 (1,314,854 548,507 430,505 1,800,920 513,589 315,237 552,674 252,889 705,803 14,082,076 Apr. 11 11,018,912 5,909,684 943,325 1,321,670 557,293 441,066 1,819,172 523,524 322,830 551,351 258,505 706,060 14,373,392 Apr. 18 |l,028,136 5,861,246 930,090 1,326,125 559,941 439,555 1,828,660 522,570 323,546 548>805 258,721 718,831 14,346,223 Reserve with Federal j Reserve Bank: | Mar.21 i 56,269 641,621 60,174 93,050 32,822 28,016 151,990 40,385 23,531 41,885 17,179 49,413 1,236,335 Mar.28 j 72,080 625,881 61,527 I 87,965 36,074 29,706 157,517 22,849 47,297 16,615 48,924 1,244,821 Apr.4 ! 62,681 651,075 63,699 I 92,794 34,752 27,359 160,584 42,735 23,300 38,582 18,687 51,304 1,267,552 Apr. 11 i 68,530 640,022 67,307 I 87,692 35,126 28,843 154,287 39,710 24,758 38,600 16,961 50,641 1,252,477 Apr. 18 ! 65,668 662,121 58,870 1 85,546 34,618 30,640 161,477 41,523 21,931 43,372 18,126 52,094 1,275,986 Cash in vault: j Mar.21 1 23,339 118,219 ! 20,007 34,132 17,271 13,600 59,440 9,614 15,159 8,553 19,985 347,755 Mar.28 \ 23,268 119,500 19,115 31,245 17,121 13,446 60,416 9,820 10,495 14,864 10,489 20,269 350,048 Apr.4 ! 23,736 118,232 19,007 32,775 17,498 13,200 62,578 If), 359 10,223 14,652 8,605 18,714 349,579 Apr.ll 24,224 121,411 18,836 31,605 18,354 13,719 64,246 10,265 8,425 15,453 9,233 20,374 356,145 Apr. 18 i 22,752 119,160 19,009 35,462 16,835 14,197 60,712 9,660 8,238 15,041 8,682 20,204 349,952 Not demand deposits on | which reserve is com- ; puted: I Mar.21 697,984 4,710,214 655,435 | 791,559 108,442 237,747 1,171,657 296,381 221,984 388,208 ]l56,825 422,406 10,058,842 Mar.28 692,275 4,684,975 653,426 f 790,0721316,700 240,144 1,185,086 296,373 223,442 387,716 1154,888 429,341 10,054,438 Apr.4 694,288 4,738,984 648,129 786,3281322,573 240,754 1,176,472 299,783 221,802 385,089 !152,695 430,568 10,097,465 Apr.ll 713,371 4,662,636 645,302 753,936 324,536 246,163 1,191,787 298,380 228,908 386,309 159,258 436,516 10,017,102 Apr. 18 731,264 4,751,827 645,700 I 770,550|326,965 243,128 L, 211,073299,346 214,664 384,100 161,888 445,604 10,186,109 Time deposits: Mar.21 110,508 265,084 22,193 I 294,202I 77,104 104,215 422,228 95,066 53,797 67,170 28,021 135.404 1,674.992 Mar.28 110,464 270,359 22,300 i 294,521! 77,838 104,708 423,634 95,457 54,318 66,558 28,183 135,919 1,684,259 Apr.4 111,175 271,961 22,436 I295,519 78,518 105,611 423,959 96,214 54,544 67,685 28,306 136,043 1,691,971 Apr.ll i 111,099 271,271 22,605 ! 290,939 79,051 108,704 ! 425,440 99,954 55,167 68,321 29,044 136,522 1,698.117 Apr. 18 112,057 276,500 22,728 | 295,763] 80,505 112,588 427,727 98,178 55,236 67,036 29,375 136,886 1,714,579 Government deposits: Mar.21 67,525 309,613 45,639 ! 62,957 19,038 18,105 88,679 27,544 12,057 23,121 15,767 690,045 Mar.28 58,959 268,910 38,903 ! 54,252 16,298 15,810 88,740 22,969 10,368 18,740 14,552 608,561 Apr.4 44,963 202,386 28,464 j 44,439 12,277 10,891 62,120 17,457 6,284 12,263 11,287 452,831 Apr.ll 56,292 407,213 41,460 52,162 19,707 15,259 63,688 23,444 12,312 14,486 17,752 723,775 Apr. 18 52,692 336,997 36,193 i 58,521 18,539 13,342 76,304 21,340 10,417 12,964 15,362 652,671 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MAY 1,1910. FEDERAL RESERVE BULLETIN. 507 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 Mar. 21,1919, to Apr. 18,1919—Contd. 2. MEMBER BANKS IN FEDERAL RESERVE BANK CITIES. [In thousands of dollars; i. e., 000 omitted.] j Boston Y N o e r w k. i i d P e h lp il h a i - a J ! C la le n v d c . - m R o ic n h d - . la A n t t - a. Chicago. Lo S u t i . s. • \ ' a M po i l n i n s. e-K C a i n t s y a . s Dallas. I F S r a a n n- Total. i Cisco. i Number of reporting banks: \ \ Mar 21 1 21 65 i 41 15 ; 7 i 9 I 255 Mar.28 21 65 ! 41 15 i 7i 9 I 255 Apr. 4 21 65 ! 41 15 i 256 Apr.ll 21 65 i 41 15 • 256 Apr.18 21 65; 41 15 ; 256 United States bonds to secure ! circulation: ! ! Mar.21 1 4,278 37,947! 7,587 3,098 2,873 3,800 1,169 10,553 I 2,7414,745 4,060 i 18,500 102,251 Mar.28 ' 4,278 38,618 j 7,587 3,998 2,873 3,800 1,169 10,553 ! 2,7414,745 4,060 I 18.500 102,922 Apr. 4 1 4,278 39,569! 7,587 4,031 2,873 3,800 1,169 10,553 '2,791 4,745 4,060 j 18; 500 103,958 Apr.ll I 4,278 39,580 ! 7,587 4,031 2,873 3,800 1,169 10,553 2,791 4,745 4,060 j 18,500 103,967 Apr.18 i 4,278 39,256 i 7,587 4,031 2,873 3,800 1,168 10,553 2,791 4,745 4,060 ! 18,500 103.642 Other United States bonds, in- | | eluding Liberty bonds: i i ! Mar.21 10,015 242,611 ! 28,546 11,926 27,151 12,135 1,528 6,538 4,724 13,(533 !369,758 Mar.28 9,934 243,884 128,628 12,326 I 7', 515 i 3,298 25,956 11,996 1,432 6,645 4,895 13,578 !370,087 Apr. 4 9,844; 242,585 I 26,857 10,757 j 7,320 i 3,121 23,877 10.682 1,519 6,547 4,867 14,451 j362,427 Apr.ll 9,746 ! 247,177 ; 26,317 10,453 i 7,609 i 3,188 22,428 10;211 1,590 6', 674 5,168 13.335 •363,896 Apr.18 1 9,081! 251,489 ' 24,838 9,371 j 7,087 I 2; 718 21,438 9,012 1,587 6,588 5,053 13; 266 !361,528 United States certificates of in-1 j i debtedness: I ! Mar.21 1 72,289! 833,718 |120,169 37,712 i 10,501 I 9,531 ! 157,174 47,720 j 18,531 j 16,856 I 13,84438,189 '1,376,234 Mar.28 ! 55,465 ! 779,743 1116,182 34,711 I 10,453 ! 9,405 I 151,364 45,963 18,295 j 15,415 j 13,93935,708 11,286,643 Apr. 4 ! 53,145 ! 758,090 ; 112,089 i30,926 I 10,438 i 9,388 i 146,121 45,400 j 18,475 ; 15,589 ! 13,95533,750 jl,247,366 Apr.ll ! 70,860 i 910,015 : 126,300 I28,051 I 11,588 I 10,043 1152,267 51,643 ! 20,394 i 17,224 I 15,11438,462 (1,451,961 Apr.18 ! 73,045 | 881,911jll7, 111 28,753 ! 12,191 • 10,058 151.141 52,287 i 17,877 j 17,623 | 15,17138,904 j 1,416,072 Total United States securities • i „,«!,,„,„ owned: i •' ' I Mar.21 i 86,582 il, 114,276 i156,302 53,636 20,951 I 16,705 185,494 70,408 j 22,800 \ 28,139 i 22,628 Mar.28 ! 69,677 11,062,245 152,397 51.035 20,841 1 16,503 178,489 68,512 •; 22,468 i 26,805 I 22,86974,786 |1,759,652 Apr. 4 ! 67,267 !l,040,244 1146,533 45; 714 20,631 i 16,309 171,167 66,635 j 22,785 ! 26,881 i 22,88266,701 il, 713,749 Apr.ll i 84,884 11,196,772 ! 160,204 42,535 22,070 I 17,031 175,864 72,407 24,775 I 28,643 I 24,34270,207 11,919,824 Apr.18 ! 86,404 jl, 172,656 149,536 42,155 22,151 i 16,576 173,747 71,852 22,255 ! 28,956 I 24,28470,670 |1,881,242 Loans secured by United i | States bonds and certificates:j I Mar.21 i 71,133 525,337 1137,530 29,954 15,392 ! 4,856 65,703 19,450 6,484 - 2,860 2,024 10,686 891,409 Mar.28 i 72,692 525,200 1136,429 28,174 14.970 ! 5,128 64,862 21,159 6,384 ! 2,966 1,786 11,239 890,989 Apr. 4 ! 73,406 510,580 1135,992 27,071 15; 382 ! 5,197 64,657 20,266 6,393 ) 2,904 1,897 11,095 874,840 Apr. 11 1 71,612 511.151 j136,095 27,666 14,839 i 5,097 67,605 20,272 6,524 ! 2,947 1,769 11,083 876,660 Apr.18 ! 66,232 505,796 1134,953 ! 26,867 14,537 ! 5,407 65,738 19,214 6,632 •• 2,903 1,798 11,051 861,128 Other loans and investments: ! Mar.21 |556,973 3,624,293 i546,371 274,735 71,226 58,765 875,800 263,655 j 98,136 ,158,126 42,852 195,05416,765,986 Mar. 28 1553,693 3,617,397 1548,036 280,696 71,421 58,594 882,924 261,025 1100,742 j159,800 42,194 196,854|6,773,376 Apr. 4 !550,395 3,605,803 |o45,603 275,524 67,697 56,559 880,930 261,377 112,097 1160,847 43,757 193,15716,733,746 Apr.ll 1552,023 3,632,539 1539,133 278,629 67,951 58,894 849,253 263,143 113,446 156,333 45,525 192,326 ,749,19o Apr.18 1563,332 3,613,301 537,971 283,985 68,172 59,038. 863,028 263,359 111,722 154,758 45,572 196,511 », 760,749 Total loans and investments: I Mar.21 i714,688 5,263,906 1840,203 358,325 107,569 80,326 1,126,997 353,513 127,420 1189,125 67,504 276,062 9,505,638 Mar.28 1696,062|5,204,842 |836,S62 359,905 |lO7,232 80,225 jl, 126,275350,696 129,594 ilS9,571 66,874 275,879 9,424,017 Apr. 4 1691,06815,156,627 1828,128 j348,309 103,710 78,065 |l,096,754 348,278 1141,275 !190,632 68,536 270,953 19,322,335 Apr.ll ,708,519 15,340,462 !835.432 1348,830 104,860 81,022 jl, 092,7221355,822 |144,745 i 187,923 71,636 278,706 19,545,679 Apr.18 |715,968 (5,291,753 !822;460 353,007 104,860 81,021 il, 102,513354,425 140,609 ,186,617 71,654 278,232 19,503,119 Reserve with Federal Reserve j Bank: Mar.21 -..! 41,866 610,173 ! 54,353 | 21,209 5,554 5,727 104,040 29,611 10,703 I 12,856 4,385 17,276 917,753 Mar.28 j 58,003 590,635 I 55,121 21,345 5,917 6,224 110,305 28,038 !10,875 ! 16,546 3,761 18,406 925,176 Apr. 4 ! 48,051 6"1- 7^—56 7 j 57^590 24,641 5,851 5,254 111,947 31,245 i11,111 i 11,118 4,822 18,282 947,471 Apr.ll j 54,296 603,466 60,592 22,286 6,061 5,346 104,811 28,583 11,536 ! 10,575 4,304 17,426 929,282 Apr.18 ! 51,326 626,406 | 52,458 23,167 6,051 110,846 30,660 9,596 j 13,326 4,760 19,907 954,312 Cash in vault: i I Mar.21 ! 14,502 104,542 | 15,867 7,139 2,251 2,433 35,715 5,493 2,587 ! 4,206 1,511 5,410 201,656 Mar.28 ! 14,377 105,900 j 15,895 7,209 1,697 2,460 35,258 5,608 4,739 | 3,878 1,967 5,652 204,640 Apr. 4 ! 14,712 j 104.297 i 15,287 7,748 1,636 2,395 37,225 5,997 4,285 j 3,942 1,650 4,913 204,087 Apr. 11 i 15,192 106)448 j 15,857 7,717 1,845 2,447 37,455 5,820 2,503 I 4,096 1,758 5,132 206,270 Apr.18 | 14,126 104,977 15,585 7,932 1,734 2,530 35,311 5,366 2,256 ! 3,862 1,620 4,918 200,217 Net demand deposits on which I reserve is computed: i Mar.21 :532,507 4,314,240 572,184 179,505 53,369 43,021 793,633(197,205 97,479!l31,061 41,411 168,439 7,124,054 Mar.28 1532,197 4,294,280 570,637 181,939 53,306 43,891 807,7121197,905 100,7391134,116 39,743 171,791 7,128,256 Apr. 4 !529,102 4,357,532 564,062 178,147 52,321 43,749 797,7221200,045 101,515'128,155 44,987 1-.6_9,,2-7.7. 7,166,614 Apr. 11 '540,742 |4,276,755 561,811 167,118 52,470 43,956 794,988|197,995 101,656 130,618 46,127 170,019 17,084,255 Apr.18 ,547,201 4,337,478 560,403 170,596 52,057 44,444 808,835 199,914 92,808 128,288 47,963 177,192 7,167,179 Time deposits: Mar.21 34,54® 206,088 13,874 1128,249 12,776 19,767 162,889 64,708 18,072 7,961 3,024 10.009 682,017 Mar.28 134,603 211,137 1~3~,9 "8"7" 128,827 13,176 19,731 162,533 64,566 18,485 7,773 3,012 101189 688,049 Apr. 4 134,851 211,881 14,118 129,472 13,257 19,603 162,045 64,814 18,544 7,866 3,044 9,983 689,478 Apr.ll |34,815 211,024 13,919 123,815 13,690 19,621 163,057 65,251 18,529 7,999 3,086 10,225 685', 031 Apr.18 135,628 215,988 13,836 127,763 14,024 19,284 164,056 65,558 18,656 7,765 3,066 10,487 696,111 Government deposits: i i Mar.21 ! 49,710 283,766 42,141 | 19,635 2,519 i 2,292 54,605 20,557 4,695 |11,898 11,291 503,109 Mar.28 43,174 246,734 36,164 I 15,354 2,163 ! 2,035 54,062! 16,985 4,065 !9,649 10,815 441,200 Apr. 4 32,495 186,241 26,375 i 14,077 1,763 I 1,522 37,668 13,152 2,946 ;6,659 8,895 331,793 Apr.ll 41,499 386,906 38,209 22,020 2,511 ! 1,876 36,445 18,371 4 444 6,533 11,446 570,260 Apr.18 39,073 318,400 33,292 19,697 2,749 i 1,566 44,418 15,985 3,507 |5,369 9,535 493,591 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

508 FEDERAL RESERVE BULLETIN. MAY 1, 1919. Principal resources and liabilities of member banks in leading cities, including member banJcs located in Federal Reserve Bank cities and in Federal Reserve branch cities as at close of business on Fridays from Mar. 21,1919, to Apr. 18,1919—Contd. 3. MEMBER BANKS IN FEDERAL RESERVE BRANCH CITIES. [In thousands of dollars; i. c, 000 omitted.] D C i l s l a t e n r v i d e c - t.! D m i R s i o t c r n i h c d - t.2 D A i t s l t a ri n c t t a .» I j D C i h s i t c ri a c g t o .* D St i . s L tr o ic u t i . s 5 D K i C s a t n i r t i s y c a t s .6 Dallas II S • a i n s tr F i r c a t. n 8 - Total. Number of reporting banks: Mar. 21 39 19 21 I 12 18 17 (j 28 160 Mar. 28 39 19 21 i 12 18 17 0 28 160 Apr. 4 39 19 21 i 12 18 17 6 28 160 Apr. 11 39 19 21 i 12 18 17 0 28 160 Unit A ed p r S . t 1 a 8 tes bonds to secure circulation: 39 19 21 I 12 18 17 6 28 160 Mar. 21 23,610 5,091 5,085 1.805 5,005 4.487 1.255 8,485 51,829 Mar. 28 23,616 5'. 091 5,08*5 ! 1,805 5,005 4'. 487 1.255 8.485 54.829 Apr. 4 23,616 5,091 5', 085 1,805 5,005 4'. 487 1,255 8.485 54,829 Apr. 11 23,616 5.091 5:085 1.805 5.005 4', 487 1'2.55 8.485 54.829 Apr. 18 23,616 5,091 5,085 l'. 805 5,005 4.487 1,255 8,485 54,829 Other United States bonds, including Liberty bonds: Mar. 21 48,018 8,044 13,342 17,782 8.076 7,882 2.050 i 13.962 119.156 Mar. 28 45,878 7,801 12.451 17,282 7,930 ! 7,590 I 2.039 ! 13.172 111.143 Apr. 4 45,253 7; 702 12,249 10.907 7,824 ' 7,871 2.043 13; 814 113;063 Apr. 11 45,804 8.057 12.319 16;577 7.596 7.344 2! 046 14.015 113,758 Apr. 18 42,726 8,030 11,747 16,109 7,334 7;334 2,002 13,180 108!462 nited States certificates of indebtedness: Mar. 21 82,852 27,048 37,724 59,398 19,765 20.712 3.138 52.682 303,319 Mar. 28 77,481 26.493 36.676 57'. 084 18.445 19,777 3.508 51,511 290,975 Apr. 4 73,057 26!092 36'. 520 52,848 18.024 19.355 3', 136 48,307 277,339 Apr. 11 79,283 31,527 41.202 60', 997 19.441 I 2i;526 5.658 53!129 312;763 Apr. 18 78,570 31,723 41,152 60,837 19,270 ; 21,641 5,777 54,712 313,682 Total United States securities owned: Mar. 21 154,486 40,183 56.151 j 78.985 32,846 ! 33.081 6.443 75,129 477,304 Mar. 28 • 146;975 39.385 54; 212 j 76.171 31,380 ! 31', 854 6.802 73,168 459.947 Apr. 4 141,926 38,885 53,854 71.560 30,853 " 31,713 6! 434 70,606 445;831 Apr. 11 -• 148,703 44,675 58,006 79.379 32.042 33.357 8,959 75,029 481.350 Apr. 18 144,912 44'. 844 57,984 78.75i 31,609 33,402 9,034 76', 377 476,973 Loans secured by United States bonds and certificates: Mai\ 21 55,319 12,488 12,456 10,069 4,232 5.081 374 6.348 106,307 Mar. 28 53,910 12,761 11,699 10,319 4.551 5! 334 377 6! 174 105,131 Apr. 4 54,978 12,322 11,600 10.238 4', 738 6,255 381 6'. 227 106', 799 Apr. 11 55,450 11.938 11,676 11.195 4.835 6.120 382 6,397 107,993 Apr. 18 56,255 Hi 548 11,661 10;844 4,765 | 6.083 380 6,739 108.275 Other loans and investments: 1 Mar. 21 513,636 112,084 161,682 248,616 107,263 I 149,340 I 13,926 208,840 1,515,393 Mar. 28 518,216 112,625 162,214 248,911 108,753 ' 147,614 13,731 209,530 1,521,597 Apr. 4 517,454 113.781 161,233 248,275 108,199 148,316 13,885 212,857 1,524,000 Apr. 11 516,878 113,085 161,499 256,349 109,439 151,534 13,680 202,928 1,525,392 Apr. 18 519,651 115,390 160,474 2,55,549 110,037 150,768 13,805 209,417 1,535,091 Total loans and investments: Mar. 21 723,441 164,755 230,289 337,670 144,341 187,502 20,743 290,323 2,099,064 Mar. 28 719,107 164,771 228,125 335,401 144,084 184,802 20,913 288,872 2,086,675 Apr. 4 714,358 164,988 226,747 330,073 143.790 186,284 20,700 289,090 2,070,030 Apr. 11 ! 721,031 169.698 231,781 346,923 146!316 191,011 23,021 284,954 2,114,735 Apr. 18 ! 720,818 171.782 230,119 345,144 140,411 190,313 23,219 292,533 2,120,339 Reserve with Federal Reserve Bank: \ Mar. 21 ! 56,247 12,113 14,903 21,284 9,792 15,607 1,225 20,903 152,194 Ma r. 2 8 1 51,308 14,427 16,120 21,014 9,533 10,320 1,194 19,890 149,812 Apr. 4 | 52,863 12,856 14,484 20,869 10,383 14,007 1,545 21,602 148,709 Apr. 11 i 50,561 13,311 15,972 23,442 10,08-1 14,794 1,118 21,310 150,592 Apr. 18 ! 47^ 873 12,904 16,827 24,075 10,009 16,035 1,650 21,027 150,400 Cash in vault: j Mar. 21 j 15,443 4,907 6,572 11,082 3,390 5,-169 7,502 55,085 A A A M p p p a r r r r . . . . 1 4 1 2 8 8 1 • 1 1 1 1 7 5 4 4 , , , , 4 5 1 8 6 5 0 2 0 7 5 5 5 6 5 5 , , , , 3 0 0 3 2 0 9 7 0 9 8 6 6 6 6 6 , , , , 2 2 3 8 4 7 1 3 1 1 4 7 1 1 1 1 2 1 2 1 , , , , 5 8 0 5 1 9 9 9 0 7 0 5 3 3 3 3 , , , , 5 5 4 5 0 1 7 0 1 6 9 0 5 5 5 5 ; , , . 7 5 2 7 4 8 9 9 4 8 3 8 5 5 4 4 9 9 5 4 8 8 0 7 7 , , , , 3 8 8 5 0 2 1 9 1 6 0 8 5 5 5 5 0 5 9 5 , , , , 2 5 2 G 1 7 6 Q 5 0 7 o Net demand deposits on which reserve is compu M A A M A te p p p a a d r r r r r : . . . . . 4 1 2 1 2 8 8 1 1 4 4 4 4 4 5 5 4 6 5 3 7 1 0 7 , , , , , 1 5 1 8 5 1 4 5 3 8 9 1 8 6 3 I I I I i 1 1 1 1 1 1 1 1 0 0 6 1 1 3 7 , , , , , 9 9 1 5 8 3 0 0 5 0 9 3 4 5 8 1 1 1 1 1 3 3 3 3 3 6 4 8 4 5 , , , , , 4 2 2 6 0 3 9 0 0 4 1 1 5 6 8 1 1 1 1 1 6 7 4 4 4 ? 1 8 7 9 ; , . . ; 4 7 4 7 5 0 2 2 5 0 9 7 0 8 8 I 9 8 8 8 8 0 8 9 9 8 , , , , , 1 8 0 1 2 3 3 5 1 9 4 3 5 6 7 1 1 1 1 1 3 3 2 3 2 0 4 8 3 9 , , , , , 9 9 2 7 0 5 2 3 5 8 0 0 0 8 3 1 1 1 1 1 0 0 0 1 1 ; : : , . 9 7 2 0 0 5 2 0 0 4 4 0 7 0 2 I I ! ! i 1 1 1 1 1 0 0 0 7 7 2 7 5 0 2 , , , , , 3 4 3 0 5 1 5 7 8 0 5 7 2 2 7 ; ' : : I 1 1 1 i 1 , . , , ; 2 2 2 2 2 3 5 4 8 0 8 1 2 4 1 , , , , , 6 2 1 3 0 7 3 3 1 0 1 9 2 0 3 Time A M M A A p p p d a a r r r e r r . . . . . p 4 2 1 2 1 o 1 1 8 8 sits: 9 9 9 9 9 5 5 3 3 3 , , , , , 7 1 6 9 3 0 0 1 5 7 9 0 2 0 8 i i i ! 1 1 1 1 1 5 5 4 4 5 , , , , , 7 7 4 1 2 1 0 5 0 1 1 1 5 2 7 5 5 5 5 5 9 4 1 0 i , , , . ; 1 9 9 9 3 5 0 3 8 3 4 9 0 2 7 1 1 1 1 1( 0 6 6 6 5 0 6 4 0 7 , , , , , 4 4 9 6 6 3 7 9 7 0 4 3 2 7 2 2 2 2 2 2 3 4 3 7 5 ; , . , , 2 2 4 3 7 1 5 8 5 5 4 4 5 0 5 ! 3 3 3 3 3 0 6 0 0 7 , , , , , 9 3 0 3 1 4 4 2 5 6 4 7 9 5 8 5 5 5 5 5; , . , , 7 4 7 7 0 0 3 3 7 8 9 0 0 8 7 ! 1 9 9 9 9 9 4 4 3 4 3 ' ; ! . . . 9 1 9 0 0 7 5 9 9 2 1 0 0 7 4 , i : ' : • 4 5 4 4 -1 8 9 0 8 8 8 6 0 3 5 ; . ; , . 3 0 0 1 9 9 2 8 4 4 5 5 7 4 9 Gov A A A M M er p p o a a n r r r r r m . . . . . 4 2 2 1 1 e 1 8 8 1 nt deposits: 3 3 2 2 3 2 5 3 5 2 , , , , , 0 2 3 4 3 0 7 3 0 7 7 5 5 7 1 I i i j ' 1 1 9 8 6 0 1 , , , , , 3 5 4 7 5 6 1 8 4 7 1 9 4 7 2 1 9 6 8 8 0 . , ; , , 0 2 7 2 9 . 0 5 4 1 7 9 4 8 1 0 2 2 1 1 1 3 9 0 0 4 ' , , , , , 0 1 3 3 7 4 3 5 5 4 3 5 2 2 6 5 4 4 4 6 , , , ; , 9 1 7 0 5 4 0 8 2 4 1 7 9 4 2 ; ! i j ' 3 2 3 5 4 , , , , , 8 7 7 6 5 9 9 9 3 6 2 9 7 7 0 I i i j 2 2 1 , , , 7 0 8 9 1 4 7 9 6 4 2 5 2 5 0 j ! | I . . . . . 5 6 8 8 8 9 9 1 1 9 , , , , , 1 3 3 7 3 2 9 7 6 4 1 1 5 4 9 1 Pittsburgh and Cincinnati. D Louisville, Memphis, and Little Rock, 2 Baltimore. c Omaha and Denver. * New Orleans, Jacksonville, and Birmingham. 7 El Paso. * Detroit. 8 Spokane, Portland, Soattle, and Salt Lako City. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

,1919. FEDERAL RESERVE BULLETIN. 509 IMPORTS AND EXPORTS OF GOLD AND SILVER. Gold imports and exports into and from the United States. [In thousands of dollars; i. e., 000 omitted.] 10 i n d g a ' y M s a e r n . d- 11 i n d s a f y M s a o r n . d- 10 i n d g a y A s r > e r n . d- Total since T 1 o ,1 ta 9 l 1 , 8 J , a to n. 20,1919. 31, 1919. 10, 191i>. Jan. 1,1919. Apr. 12,1918. IMPORTS. Ore and base bullion 1,035 428 378 4,854 3,229 Bullion, refined 6 5,903 56 6,984 4,319 United States coin 28 2 2,509 7,645 2,483 Foreign coin 132 Total 1,069 6,333 2,943 19,483 10,163 EXPORTS. Domestic- Ore and base bullion 1 26 United States mint or assay office bars 135 Bullion,refined.. . .. . . . .. 1 3,268 Coin 744 2,337 848 10,985 9,207 Total 744 2,337 848 11,122 12,501 Foreign coin 15 6 41 304 Total exports 744 2,352 854 ' 11 lfis 12,805 Excess of gold imports over exports since Jan. 1,1919, $8,320,000. Excess of gold imports over exports since Aug. 1,1914, $1,079,726,000. Silver imports and exports into and from the United States. [In thousands of dollars; i. e., 000 omitted.] 1 in 0 g d M ay a s r . e n 20 d . - 1 in 1 g d a M y a s r e . n 31 d . - T 1 3 o 1 t t , o a l 1 , M 9 J 1 a a 8 r n . . . 1 in 0 g d A 1 a 9 y p i s 9 r . . e 1 n 0 d , - J T a o n t . a 1 l ,1 si 9 n 1 c 9 e . IMPORTS. Ore and base bullion 1,638 2,478 15,761 6,903 1,930 17,691 United States mint or assay office bars 21 Bullion, refined . . 347 500 2,995 7,960 249 3,244 United States coin 21 20 172 203 23 195 Foreign coin 265 82 1,604 2,323 172 1, 776 Total 2,271 3.080 20,532 17,410 2,374 22,906 EXPORTS. Domestic: Ore and base bullion 3 3 3 United States mint or assay office bars 7,595 45, 727 8 11,596 57,323 Bullion, refined 2,511 715 26,589 22,199 4,977 31,566 Coin 33 83 415 690 38 453 Total 10,142 798 72,734 22,900 16,011 89,345 Foreign: Bullion, refined 907 202 1,861 1,372 535 2 396 Coin 75 103 1,227 2, 407 144 1,371 Total 982 305 3 088 3 679 679 3 767 Total exports 11,124 1,103 75, 822 26,579 17,290 93'112 Excess of silver exports over imports since Jan. 1, 1919, $70,206,000. Excess of silver exports over imports since Aug. 1, 1914, 5319,966,000. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

510 FEDERAL RESERVE BULLETIK*. MAT 1,1919. Estimated general slock of money held by Treasury and by the Federal Reserve system, and all other money in the United States, April 1, 1919. G o t e f h n e m S e t r o U a a n t l n e e i s s y t t . e o i d c n k U G a T H n o s r e s v i e t e l e a e d t r s d s n i u n o m r S f y t t e t a h n h a t e t e e s . s 1 H s F a o e n e l r d d d v e e b a r y g a B l e a o n R n r t k e s f . - o s r u S H e t r r t h e y a a s e l l t y d a e R s U n s o t d e e T n u s m i r t F e t s e . e r e i a v d d d s e e - - c S A u a F t t p h r e m a y e i d t t e o a e a U s u r n o a n T n d l u t i r t t R e t p e s h a i e d e e d s - r - e serve system. Gold coin2 §3,092,415,909 §353,098,171 51,510,656,040 8403,256,743 Gold certificates 450,785,415 374,619,540 Standard silver dollars 328,434,930 *"*38,"448,'40i' 81,062,200 Silver certificates 8,781,975 198,370,635 Subsidiary silver *243,"387,"4i8" 12,445,046 3 3,455,904 227,486,468 Treasury notes of 1890 1,771,719 United States notes : 346,681,016 15,994,562 * 55,752,082 274,934,372 Federal Reserve notes ' 2,695,714,210 50,348,326 142,744,280 2,502,621,604 Federal Reserve bank notes ; 155,632,180 12,828,092 9,444,817 133,359,271 National-banknotes • 724; 487,192 67,465,856 13,531,253 643,490,083 Total: April 1,1919 586,752,855 i 550,628,454 2,195,151,766 4,840,972,635 $45.17 Mar. 1,1919 560,299,924 ! 545,695,945 2,169,183,676 4,851,420.303 45.33 Feb. 1, 1919 : 611,628,810 | 489.831,726 2,252,757,560 4,869,039;524 45.56 Jan. 1,1919 780,793,606 454,948,160 2,220:705,767 5,105,139,679 47.83 Dec. 1,1918 669,576,580 416,383,232 2,123;208,487 5,129,984,861 48.13 Nov. 1,1918 590,173,171 399,321,725 2,125,198,801 5.065,652,645 47.59 Oct. 1,1918 391,008,277 . 380,246,203 2,084.774,897 4,925,987,177 46.34 Sept. L 1918 092,955,371 | 369,937,060 2,070;371,803 4,652,646,508 43.83 Aug. 1," 1918 895,089,799 I 390,798,058 2,054,455,993 4,449,835,748 41.97 July 1,1918 742,225,784 I 356,124,750 2,018!361,825 4,367,739,209 41.31 Jan. 1,1918 256,198.271 i 277,043,358 1,723:570,291 4,255,584,622 40.53- Apr. 1,1917 312,109.272 i 258,198,442 952;934,705 4,100,976,125 39.54 1 Includes reserve funds against issues of United States notes and Treasury notes of 1890 and redemption funds held against issues of nationaJbank notes, Federal Reserve notes, and Federal Reserve Bank notes. 3 Includes balances in gold settlement fund standing to the credit of the Federal Reserve Banks and agents. 3 Includes standard silver dollars. * Includes Treasury notes of 1890. DISCOUNT RATES. Discount rates of each Federal Reserve Bank approved by the Federal Reserve Board up to Apr. 30, 1919, Maturities. Discounts. Trade acceptances. Secured by G. S. certificates of indebtedness or Liberty loan Federal Reserve Bank. Within 15 Agricul- bonds. I i c n m o b n c l a e l o l u n m a t d t e k e b s i s r n . e ' a r g l l t i u v o p d r e v a a a - e l p s y r t e a s o 9 r n . c 0 d k W i m n b c i d e a t l a m u h n y d i k b n s i s , e n ' 1 r g 5 16 d a t y o s. 90 collateral notes. Boston New Yorkl.. Philadelphia. Cleveland Richmond.... Atlanta Chicago St. Louis Minneapolis.. Kansas City.. Dallas San Francisco 1 Rates for discounted bankers' acceptances maturing within 15 days, 4 per cent; within 16 to 80 days, 4\ per cent; and within 61 to 90 days, 4$ per cent. 2 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. 3 Four per cent on paper secured by United States certificates of indebtedness. * 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; also on paper secured by United States certificates of indebtedness. NOTE 1.—Acceptances purchased in open market, minimum rate 4 per cent. NOTE 2.—Rates on paper secured by War Finance Corporation bonds, 1 per cent higher than on commercial paper of corresponding maturities* NOTE 3.—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 4.—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

MAY 1,1919. FEDERAL, RESERVE BULLETIN. 511 OPERATION OF THE FEDERAL RESERVE CLEARING SYSTEM MAR. 16 TO APR. 15, 1919. Items drawn on banks in Items drawn on banks in Total items drawn on Federal Reserve city district outside Fed- banks in own Federal (daily average). eral Reserve city (daily Reserve district (daily average). average). Number, i Amount. Number. Amount. I Number. Amount. Boston 18,221 ! $21,755,677 85,049 $12,416,657 103,270 334,172,334 New York 26,294 j 71,642.172 126,853 54,171,779 153,147 125,813,951 Philadelphia.. 28,261 i 27,630^693 | 46,079 6,158,107 74,340 33,788,800 Cleveland 10,794 ! 8,144,199 70,890 23,732,552 81,684 31,876,751 Richmond 2,757 i 5,407,561 52,459 13,563,172 55,216 18,970,733 Atlanta 3,154 i 2,551,781 26,830 6,574,173 29,984 9,125,934 Chicago 23,161 ! 27,277,000 73,221 12,612,000 96,382 39,S89,000 St. Louis 7,062 | 8,819,434 40,664 7,737,225 47,726 16,556.659 Minneapolis.. - 6,644 ! 9,057,487 26,187 2,341,607 32,831 11,399J094 Kansas City... 6,832 i 9,780,048 71,736 12,805,365 78,568 22,585,413 Dallas 1,417 I 2,109,107 27,581 7,558,317 9,667,424 San Francisco. 4,220 ; 3,280,982 7,471, SOS 43,183 10,752,290 Total: Mar. 16 to Apr. 15,1919. 138,817 ! 197,4f>6,121 686,512 167,142,262 825,329 ! 364,598,383 Feb. 16 to Mar. 15, 1919. 109,083 168,567,377 640,346 171,714,589 749,429 i 340,281,966 Jan. 16 to Feb. 15,1919.. 90,944 I 198,935,424 599,951 158,360,759 690,895 i 355,296,183 Mar. 16 to Apr. 15,1918. 55,034 | 159,441,188 271,506 98,201,962 326,540 i 257,643,150 Items drawn on Items handled by | Items drawn on t b r a ic n t k s s i ( n d a o i t l h y e r a v d e is r- - a l b y n o d a t h v b e r p r a a a n g r c e e h n ). e t s b ( a d n a k i - j I j T e a d r v e e a r s S a u t g r a e e t ) r e . s of ( U da n i i l t y - N b m a u e n m m ks b b e e in r r N m u n e m m on b b - e e r r district. banks on par list. Amount. Number. Amount. Number. Amount. Boston 9,838 311,124,598 0,217 82,399,600 425 243 New York . 32,899 15,671,169 51,348 25,543,595 725 322 Philadelphia 23,447 8,880,916 8,990 3,251,242 665 350 Cleveland 3,769 3,941,804 2,225 SI, 485,020 6,574 2,207,151 819 885 Richmond 8,911 5,330,451 292 345,777 3,769 504 464 i 569 295 Atlanta 3,451 2,756,208 3,807 1,760,778 5,897 1,240,204 i 428 288 Chicago 7,136 1,515,000 416 359,000 21,423 4,093,000 1,342 2,804 St. Louis 985 358,163 1,173 352,957 10,025 1,445,170 517 1,339 Minneapolis 1,490 1,357,585 1,597 175,303 875 1,292 Kansas City 6,856 5,282,098 "3," 629* " 1," 884," 877" 7,673 454,154 999 2,186 Dallas 3,424 1,664,221 1,160 193,024 i 4,832 519,634 739 249 San Francisco 1,123 1,728,071 4,256 2,648,372 i 5,843 7,496,409 911 Total: i Mar. 16 to Apr. 13, 1919 101,329 59,610,264 16,958 9,029,805 !137,228 49,329,926 8,765 11,084 J F a e n b . . 1 1 6 6 t t o o F M e a b r . . 1 1 5 5 , , 1 1 9 9 1 1 9 9 4 1 8 0 9 0 , , 9 9 7 6 2 3 5 5 5 8 , , 7 4 6 3 0 1 , , 5 53 5 0 9 1 1 5 2 , , 0 8 4 0 7 7 1 9 1 , , 7 0 7 3 4 6 , , 2 4 6 0 9 0 1 1 1 2 4 6 , , 8 0 6 5 3 1 4 6 6 3 , , 7 2 4 2 6 1 , , 5 0 0 0 5 2 8 8 , , 7 7 2 1 9 7 1 1 0 0 , , 8 6 8 2 5 2 Mar. 16 to Apr. 15, 1918 | 53,725 53,391,691 7,793 8,942,976 59,228 31,563,675 8,059 9,525 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

512 FEDERAL BESERVE BULLETIN. MAY 1,1919. FOREIGN EXCHANGE RATES. Monthly ranges of exchange rates on leading foreign money centers, quoted in New York during the four months ending April, 1919. January. February. March. April. Exchange L at par. I Low. High. Low. High. Low. High. Low. High. London: 60-day banker's bills, dollars for£ 4.8665 4.73125 4.73125 4.73125 4.7325 4.565 4.7325 4.57 4.645 Sight drafts. -dollars for £... 4.8665 4.7575 4.7585 4,7575 4.7585 4.585 4.758 4.60 4.6725 Paris francs for 100 dollars.. 518.1347 546.25 545.50 547.50 545.625 602.50 546.50 609.50 588.00 Milan lire for 100 dollars.. 518.1347 637.25 636.50 637.00 636.25 775.00 636.25 757.50 702.00 Prague dollars for 100 kronen 20.30 5.60 6.67 Vienna do.._ 20.30 5.00 5.70 Brussels.. -francs for 100 dollars.. 518.1347 !570.00 560.00 568.00 563.00 628.00 567.00 642.00 623.00 £ Madrid...dollars for 100 pesetos.. 19.30 20.05 20.14 20.08 21.10 20.125 21.10 20.10 20.375" Amsterdam, dollars for 100 florins. 40.20 41.125 42.75 41.10 41.25 40.125 41.125 40.125 41.25 » Stockholm.dollars for 100 kroners. 26.80 28.10 29.10 28.00 28.15 26.70 28.15 26.625 27.125 Copenhagen do 26.80 25.90 26.80 25.90 26.125 25.10 26.00 24.75 25.375 Christiania do 26.80 27.25 28.10 27.10 27.375 25.65 27.15 25.625 26.125 Zurich francs for 100 dollars.. 518.1347 495.00 482.00 496.00 485.50 502.50 483.00 503.00 492.00 Buenos Aires, dollars for 100 gold pesos i 96.48 101.50 102.75 101.50 102.45 99.00 102.375 98.875 101.15 Rio de Janeiro, dollars for 100 paper railreis * 2 54.62 25.00 26.75 25.50 26.10 25.75 26.375 25.75 27.00 Valparaiso, .dollars for 100 pesos *. 36.50 20.20 21.19 17.71 20.45 17.30 18.97 18.73 20.33 Yokohama.. .dollars for 100 yen.. 49.85 51.25 52.25 51.00 51.50 50.75 51.00 50.75 51.375 Hongkong, dollars for 100 Hongkong dollars 78.00 81.00 74.00 78.00 73.50 75.25 75.00 80.25 Shanghai, dollars for 100 Shanghai taels 122.00 126.00 114.00 123.00 108.00 114.00 109.00 117.75 London average price of silver at nominal rate of £ ($4.8665) 1.06181 1.05309 1.05464 1.07164 New York average price of silver.. 'I 1.01125 1.01125 1.01125 1.01125 1 Cable rates on New York. 2 Rate for a gold milreis. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MAY 1,1919. FEDERAL JRESEKVE BULLETIN. 513 CONDITION OF MEMBER BANKS. still heavier decline, from 675 to 564 millions, Substantial liquidation of bank investments though it is probably true that the cash holdin United States bonds more than offset, how- ings at the close of the year, as the result of ever, by large increases in Treasury certificate the holiday trade, were abnormally large. A holdings is indicated by the consolidated decrease from 816 to 479 millions is shown in statement of the Federal Reserve Board, show- the total of clearing-house exchanges, the ing condition on March 4, 1919, of 7,756 larger figure reflecting largely the heavy divinational banks and 969 other member banks. dends, interest, and other payments due at Between December 31, 1918, and March 4, the end of the year. 1919, loans and discounts (including over- On the liability side, while total gross dedrafts) show a decline from 13,562 to 13,437 posits show a small decline from 21,483 to millions, notwithstanding the gain between the 21,409 millions, considerable changes are shown two dates in the number of reporting banks and for the several classes of deposits. Thus, govthe increase in the total of loans secured by ernment deposits, mainly as the result of the United States war obligations carried by the large loan operations of the Government, went reporting institutions. Total loans and in- up from 472 to 884 millions, and time deposits vestments (less fixed investments) are given as from 3,834 to 4,092 millions, while demand 21,577 millions, compared with 20,335 millions deposits other than Government deposits deat the end of 1918. Of the March 4 total, clined from 13,309 to 12,709 millions. Of the Liberty bonds shown among the assets of the total gross deposits 6,196 millions, or about reporting institutions constituted 1,340 mil- 29 per cent, is given as the share of the nonlions, as against 1,588 millions at the close of national member banks, while of the total 1918. Treasury certificates owned increased Government deposits the share of these banks from 1,303 millions to 2,690 millions, while was slightly in excess of one-third. loans secured by United States war obligations, Acceptance liabilities of all member banks largely Liberty bonds, went up from 1,402 are shown as 451 millions, or 29 millions less millions at the close of the past year to 1,497 than at the beginning of the year. Of the millions on March 4 of the present year. It m ay total, 182 millions, or over 40 per cent, was the be seen, therefore, that the total funds of the share of the nonnational member institutions, member banks invested in United States war largely trust companies in New York City. securities and war paper have increased from In harmony with the larger scale of Governabout 4,300 to 5,528millions, or by 1,228millions ment loan operations, the aggregate of bills during the first nine weeks of the present year. payable with the Federal Reserve Banks shows These figures disregard, howTever, differences an increase from 1,159 to 1,476 millions, or of in amounts of paper held under rediscount 27.4 per cent. For member banks, other than with the Federal Reserve Banks on the two national banks, an increase in this item from dates. Between the end of 1918 and March 4 of 342 to 462 millions, or of 35 per cent, is noted. the present year, according to the records of the Rediscounts, chiefly with the Federal Reserve Federal Reserve Board, the amount of war paper Banks, show a decline from 730 to 528 millions held under rediscount by the 12 Federal Reserve for all member banks and a relatively much Banks decreased from 360 to 240 millions, while larger decline from 228 to 139 millions for the amount of other paper held under rediscount members other than national banks. declined from 285 to 184 millions. The difference between 528 millions, the Aggregate reserve balances of all member total rediscounts of member banks, and 427 banks (with the Federal Reserve Banks) de- millions, the amount of paper held under clined from 1,655 to 1,633 millions. Of the rediscount with Federal Reserve Banks on the latter total, 483 millions, or about 30 per cent, same date, indicates approximately the amount constitutes the share of trust company and of paper held under rediscount with banks State bank members. Cash in vault shows a other than Federal Reserve Banks. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

514 FEDERAL RESERVE BULLETIN. MAY 1, 1919. Abstract of reports of condition of member State banlcs and trust companies in each Federal Reserve district on Mar. 4, 1919. [In thousands of dollars, i. e., 000 omitted.] District District District District District District Districts No. 1 No. 2 No. 3 No. 4 No. 5 No. 6 No. 7 (296 (32 banks).(102 banks). (31 banks). (73 banks). (39 banks). (55 banks). banks). RESOURCES. Loans and discounts 319,585 1,642,156 140,580 285,703 64,934 124,769 731,359 Overdrafts 94 441 208 158 118 434 393 Customers' liability under letters of credit 7,907 1 429 Customers' liability account of acceptances 14,271 114,179 725 7,380 673 4,965 18,127 Liberty bonds (exclusive of Liberty bonds borrowed) 13,802 156,015 16,747 23,613 5,882 12,845 53,074 Other United States bonds (exclusive of United States bonds borrowed) 144 57 613 1 5,310 United States certificates of indebtedness 00,751 393,062 34,492 i 84,745 9,374 17,698 150,239 "War savings and thrift stamps actually owned 134 188 23 139 20 76 '346 Stock of Federal Reserve Bank 1,742 8,457 2,009 2,751 475 779 4,165 Other bonds, stocks, and securities (exclusive of bonds, stocks, and securities borrowed) 86,320 495,061 96,402 149,987 11,608 17,912 209,862 Banking house 8,562 42,656 6,996 13,410 1,818 6,316 15,394 Furniture and fixtures 385 779 405 1,007 198 562 2,309 Real estate owned other than banking house 228 5,919 2,785 4,317 786 2,658 2,056 Lawful reserve with Federal Reserve Bank 36,712 263,890 19,337 27,719 4,809 11,925 78,752 Items with Federal Reserve Bank in process of collection 8,163 27,849 3,636 1,954 947 2,842 9,407 Due from banks and bankers 31,259 192,045 14,199 40,928 9,573 25,405 104, 23 Gold coin and certificates 1,733 9,684 433 187 i 95 557 2,936 All other cash in vault 12,393 35,845 4,838 9,929 ! 2,437 5,568 28,434 Exchanges for clearing house, also checks on banks in same i 5,946 132,283 2,052 4,038 579 7,158; 19,805 Outside checks and other cash items. 999 7,202 208 514 185 1,991 j 7,527 Interest earned but not collected 626 12,938 475 496 28 124 855 Other assets 1,387 49,457 6,413 1,974 1,106 j 2,049 Total.. 605,236 j 3,598,070 352,963 661,562 i 114,973 245,691 ! 1,446,951 LIABILITIES. Capital stock paid in 27,483 124,808 21,528 32,164 9,455 16,300 I 73,920 Surplus fund 30,931 161,302 45,472 59,621 6,728 10,759 ! 67,196 Undivided profits, less expenses, and taxes paid \ 8,956 41,397 8,156 10,049 2,193 2,370 | 17,431 Interest and disc«unt collected or credited in advance, but not earned 1,434 4,833 323 261 771 Amount reserved for taxes accrued 1,830 8,440 684 3,169 73 ! 341 3,170 Amount reserved for interest accrued . 1,306 6,988 505 387 217 i 320 1,548 Due to Federal Reserve Bank 443 1,888 116 2 | n i 136 Due to banks and bankers 19,566 350,220 6,807 14,690 6,913 I 31,256 j 89,450 Demand deposits 358,995 1,983,460 183,065 220,362 46,330 I 104,507 i 513,001 Certified and cashier's or treasurer's cheoks outstanding 5,864 106,723 525 2,549 1,259 ! 1,933 i 9,918 Time deposits 93,066 219,775 32,322 248,529 29,093 I 49,873 I 568,110 United States deposits 24,395 168,498 12,805 20,371 2,885 j 5,947 ! 39,573 Bills payable with Federal Reserve Bank 14,122 266,078 38,648 40,600 8,109 I 14,091 ! 41,683 Brlls payable other than with Rederal Reserve Bank 320 1,312 726 100 | 595 ! 631 j 768 Cash, letters of credit, and travelers' checks outstanding 7,084 2 i 441 Acceptances 125,369 725' 7,380 I 673 i """6*692"! 18,102 Other liabilities ! 19.895 915 1,151 | 185 956 i 1,733 899 j Total- 605,236 | 3,598,070 352,963 661,562 114,973 j 245,691 | 1,446,951 Liability for rediscounts, including those with Federal lleserve Bank 35,129 53,101 10,206 2,661 2,665 9,417 ! 10,537 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MAY 1,1919. FEDERAL RESERVE BULLETIN". 515 Abstract of reports of condition of member State banks and trust companies in each Federal Reserve district on Mar. 4, 1919. [In thousands of dollars, i. e., 000 omitted.] D N is o. t ri 8 ct D N is o. t ri 9 ct D N i o s . tr 1 ic 0 t D N i o s . tr 1 ic 1 t D N i o s . tr 1 ic 2 t U T n o i t t a e l d (43 banks). (72 banks). (29 banks). (107 banks) (90 banks). (969 banks). KESOUECES. Loans and discounts 185,938 53,963 j 55,443 40,193 87,350 3,731,973 O verdrafts 344 102 ! 124 200 504 3,120 Customers' liability under letters of credit 15 8,352 Customers' liability account of acceptances 6,958 154 351 1,181 168,964 Liberty bonds (exclusive of Liberty bonds borrowed) 4,057 2,300 3,027 3,455 6,607 311,424 Other United States bonds (exclusive of United States bonds borrowed) 8 28 2 343 41 6,547 United States certificates of indebtedness 33,481 8,212 6,005 2,790 18,163 819,012 War savings and thrift stamps actually owned 51 40 23 50 55 1.145 Stock of Federal Reserve Bank 1,333 260 262 464 22', 983 Other bonds, stocks, and securities (exclusive of bonds, stocks, and securities borrowed) 36,253 4,621 10,567 13,555 1,132,795 Banking house 5,703 957 978 1,436 2,284 106,510 Furniture and fixtures 707 294 150 457 607 7', 860 Real estate owned other than banking house 1,674 205 137 501 1,818 23,084 Lawful reserve with Federal Reserve Bank \ 19,616 3,712 6,185 3,055 7,714 483;426 Items with Federal Reserve Bank in process of collection 5,605 256 1,790 356 1.301 64,106 Due from banks and bankers 12,094 15,688 7,732 15,896 497,151 Gold coin and certificates 467 204 172 74 549 17,091 All other cash in vault 4,272 1,433 1,523 1,755 3,155 111,582 Exchanges for clearing house, also checks on banks in same place ! 4,194 853 1,948 662 3,506 181,024 Outside checks and other cash items ! 1,388 392 340 314 1,170 22,230 Interest earned but not collected ! 224 122 25 i 14 358 16,285 0 ther assets ! 74 105 | 331 64,397 Total. 350,880 90,122 104,648 i 7,801,061 LIABILITIES. ; Capital stock paid in I 23,925 6,612 5,447 7,438 i 11,388 i 360,468 Surplus fund : 20,515 2,240 3,312 2,587 ! 4,343 : 415,006 Undivided profits, less expenses and taxes paid ; 4,719 ' 843 864 801 i 2,212 I 99,991 Interest and discount collected or credited in advance, but not earned..: 263 55 232 37 j 166 I 8,753 Amount reserved for taxes accrued ! 414 106 104 40| 199 | 18,570 Amount reserved for interest accrued i 373 117 161 35 I 284 ! 12,241 Due to Federal Reserve Bank | j. 4 i 2.606 Due to banks and bankers i 36,831 j 15,834 16,739 4,795 i 12,928 I 606;029 Demand deposits j 134,152 j 26,542 51,037 35,250 | 60,181 i 3,717,482 Certified ana cashier's or treasurer's checks outstanding ; 3,374 I 3,268 2,270 62.1 '• 1,540 i 137,844 Time deposits ! 80,269 ' 33,610 20,372 6,758 •• 58,594 ! 1,440,371 United States deposits ! 11,658 | 2,036 2,267 1.418 ' 3', 375 : 295,228 Bills payable with Federal Reserve Bank ! 26,829 i 701 949 2,968 ; 6,990 • 401,768 Bills payable other than with Federal Reserve Bank ; 275 ! 122 222 2,342 i 1,211 j 8,624 Cash,"letters of credit, and travelers' checks outstanding ! 16 !. 1 '•• 43 i 7,588 Acceptances ! 6.938 |. 50 i 1,087 ! 182,092 Other liabilities ' 329 I 211 j 6S I 26,400 Total. 350,880 i 90,122 104,648 j 65,356 j 164,609 I 7,801,061 Liability for rediscounts, including those with Federal Reserve Bank..' 7,334 305 i 815 j 2,922 | 3,768 J 13S.854 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

516 FEDERAL RESERVE BULLETIN. MAY 1, 1919. Abstract of reports of condition of member State banks and trust companies of the Federal Reserve System on Mar. 4,1919, arranged by classes. [In thousands of dollars; i. 8., 000 omitted.] Total Total. ! Other United United j reserve Country States (969 ; States (930 j I city (1 b 4 a 6 n ks ba ' n ks n ( 7 4 6" b M a a n r k . s 4 ) , D b e a c n . k 3 s) 1, 1919. 1918. RESOURCES. Loans and discounts SI,872,961 §1,052,285 $806,727 $3,731,973 $3,630,678 Overdrafts 496 1,395 1,229 3,120 3; 383 Customers' liability under letters of credit 8,164 187 1 8:352 12;959 Customers' liability account of acceptances 136,793 29,558 2.613 168', 964 168,713 Liberty bonds (exclusive of Liberty bonds borrowed) 140,831 81', 351 89,242 311,424 375,045 Other United States bonds (exclusive of United States bonds borrowed) 4,257 629 1.661 6,547 3,883 United States certificates of indebtedness 407,655 251,881 159.476 819,012 321,977 War savings and thrift stamps actually owned 106 407 ' 632 1,145 1,714 Stock of Federal Reserve Bank 10,242 7,971 4,770 22;983 22,545 Other bonds, stocks, and securities (exclusive of bonds, stocks, and securities borrowed) 497,744 . 376.947 258,104 1,132,795 1,097,597 Banking house 40,590 i 40', 290 25,630 106,510 105,050 Furniture and fixtures ' 688 i 2,668 4.504 7,860 7,401 Real estate owned other than banking house ., 5,998 I 12,515 4,571 23,084 22,046 Lawful reserve with Federal Reserve Bank 300.418 I 117,332 65,676 483,426 474,579 Items with Federal Reserve Bank in process of collection 34:914 ! 22,329 6,863 64,106 61,498 Due from banks and bankers 226,844 i 150,811 11-9,496 497,151 543,316 Gold coin and certificates 10,802 2.695 3,594 17,091 20,428 All other cash in vault 39,796 35.514 36,272 Hi; 582 133,592 Exchanges for clearing house, also cheeks on banks in same place 143,611 20,423 7,990 181,024 307,918 Outside checks and other cash items 9,945 ! 7,954 4,331 22,280 35,395 Interest earned but not collected 12,173 2,597 1,515 16,285 17.170 Other assets 48,739 10,110 5,548 64,397 115;226 Total. 3,953,767 ! 2,236,8-19 1,610,445 7,801,061 7,482,113 LIABILITIES. Capital stock paid in 145,234 114,988 100,246 360,468 j 3;>0,110 Surplus fund 200,927 152,706 61,374 41,-), 006 409,680 Undivided prq.fi ts, less expenses and taxes paid 44,208 31, MO 24,273 99,991 93,315 Interest and discount collected or credited in advance, but nor earned. 5,002 2,645 1,106 8,753 8,111 Amount reserved for taxes accrued 10,684 6,361 I,o2o 18,570 15,007 Amount reserved for interest accrued 6,596 i 3,169 2,476 12,241 9,156 Due to Federal Reserve Bank 255 ! 208 2,143 2,606 1,109 Due to banks and bankers 405,900 i 143,678 56,451 606,029 628,139 C D e e r m tif a ie n d d a d n e d p o c s a it s s hier's or treasurer's checks outstanding 2,0 1 9 1 4 2 , , 2 2 7 3 5 6 ! i 9 1 3 6 6 , , 6 2 9 4 3 8 68 8 6 , , 9 9 1 5 5 9 3,7 1 1 3 7 7 , , 4 8 8 44 2 3,851,970 Time deposits 320,601 582,761 537,009 1,440,371 1,361,020 United States deposits 178,286 76,541 40,401 295,228 160,464 Bills payable with Federal Reserve Bank , 253,636 130,183 77,949 461,768 342,009 Bills payable other than with Federal Reserve Bank 2,906 5,718 8,624 18,963 Cash letters of credit and travelers' checks outstanding 7,336 i 24S 4 7,088 16,335 Acceptances 147,974 i 31,945 2,173 182,092 175,523 Other liabilities 20,617 I 4,060 1,723 26,400 41,202 Total 3,953,767 | 2,236,849 1,610,445 7,801,061 7,482,113 Liability for rediscounts, including those with Federal Reserve Bank 55,579 i 54,540 ,28,735 138,8o4 I ~2287o44 Ratio of reserve with Federal Reserve Bank to net deposit liability (per cent) 12.9 ! 10.3 7.0 11.0 i 11. 0 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MAT 1,1919. FEDERAL RESERVE BULLETIN. 517 Abstract of reports of condition of all member banks in each Federal Reserve district on Mar. 4,1919 {including 7,756 national banks and 969 State banks and trust companies). [In thousands of dollars; i. e., 000 omitted.] District District District District District District District RESOURCES. No. 1 (423 No. 2 (724 No. 3 (663 No. 4 (820 No. 5 (568 No. 6 (420 No. 7 (1,341 banks). banks). banks). banks). banks). banks). banks). Loans and discounts . .. . . 980,819 4,177,464 851,172 1,173,624 627,087 480,984 2,025,131 Overdrafts 458 960 434 883 1,019 1,280 2,707 Customers' liability under letters of credit . 135 8,736 0 11 12 62 568 Customers' liability account of acceptances 56,897 228,490 16,201 21,009 12,199 10,025 42,601 Liberty bonds1 69,478 422,902 159.977 137,377 96,000 59,182 148,803 Other United States securities1 .. 233,889 1,142,312 257J 665 341,145 146,731 131,414 501,826 War savings and thrift stamps actually owned 384 559 439 745 365 392 1,402 Stock of Federal Reserve Banks 0,775 20,909 7,573 9,213 4,113 3,160 11,282 Other bonds, stocks, etc.1. . . 225,935 992,580 381,074 409,521 89,314 47,003 388,175 Banking house ... . .. 29,460 84,639 31,354 54,023 24,942 19,262 50,188 Furniture and fixtures 1,915 3,684 3,367 3,973 2,747 2,819 6,689 Other real estate owned. . 1,297 10,346 6,239 10,718 2,811 5,818 7,167 Lawful reserve with Federal Reserve Bank 100,981 668,942 104,490 132,761 55,585 45,738 231,664 Items with Federal Reserve Bank in process of collection.. 26,811 86,806 34,513 35,880 19,721 12,362 42,932 Due from banks and bankers.... 115,385 319,827 97,450 217,140 96,776 103,639 428,831 Cash in vault 44,872 143,291 47,958 61,165 30,729 24,089 94,785 Exchanges for clearing house, also checks on banks in 22,891 457,750 31,590 23,378 15,239 16,668 61,165 Outside checks and other cash items. . . 4,046 18,035 2,284 2,963 4,455 5,298 13,707 Due from United States Treasurer 3,267 7,351 4,001 7,868 3,168 2,412 5,681 Interest earned but not collected 2,866 23,110 3,174 5,009 1,500 1,061 6,533 Other assets 3,770 65,937 0.075 2,098 1,180 1,297 3,321 Total 1,932,331 8,884,630 2,047,630 2,650,504 1,235,693 973,965 4,075,258 LIABILITIES. Capital stock paid in . . 119,540 317,607 99,446 155,825 83,089 65,244 223,422 Surplus fund 105,050 382,973 153,061 151,844 56,230 41,970 160,616 Undivided profits, less expenses and taxes paid 47,240 140,563 38,451 49,680 18,464 13,103 55,686 Interest and discount collected but not earned . . . 6' 188 18,380 4,200 4,685 4.182 2,406 8.131 Amount reserved for taxes accrued 3,704 27,712 2,877 5,832 1,221 935 9,703 Amount reserved for interest accrued. . 1.956 10,345 1,617 2.099 1,531 745 3,430 Due to Federal Reserve Bank 938 5,373 127 670 1,887 611 379 Due to banks and bankers 133.156 1,372,458 185,558 272,565 123,338 110,531 652,213 Demand deposits 1,006.086 4,213,472 890,497 1,108,250 496'. 400 420,570 1,572,131 Certified and cashier's or treasurer's checks outstanding... 14,276 287,529 10,142 10,945 8,320 5,581 29,005 Time deposits. 232,915 592,897 305.533 580,866 241,917 168' 722 975,197 United States deposits . 80,682 307,298 58,034 67,213 i 29,208 25,813 102,793 Bills pavable with Federal Reserve Bank 58,511 081.833 180,082 91,334 ] 85,805 58,637 115,257 Bills payable other than with Federal Reserve Bank 1,867 4,021 1,906 1,869 ! 6,947 3,558 5.216 -Cash letters of credit and travelers' checks outstanding '320 14,972 74 153! 5 35 L299 Acceptances 60,053 241,745 1(5,299 21.108 i 12,385 11,213 42', 983 National bank notes outstanding. . . .. 49,798 83,750 54.038 9()| 037i 52,455 39.967 78,702 United States bonds borrowed 5,717 70,304 35,809 22,299 ! 7,091 976 7'185 Other bonds and securities borrowed 487 1,961 121 1,045 ! 388 127 1,131 •Other liabilities . 3,241 42,837 9,098 6,125 ! 4,824 3.221 30,779 Total 1,932,331 8,884.630 2,047,630 2,650,504 • 1,235,693 973,965 4,075,258 Liability for rediscounts, including those with Federal Reserve Bank.. . . . . 124,154 152,903 35,184 22,642 29,624 21,776 27,186 1 Exclusive of bonds borrowed by State bank and trust company members. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

518 FEDERAL RESERVE BULLETIN". MAY 1, 1919. Abstract of reports of condition of all member banks in each Federal Reterve district on Mar. 4, 1919 (including 7,7o6 national banks and 969 State banks and trust companies.) (In thousands of dollars; i. e., 000 omitted.] Total District District District District District United No. 8 (510 No. 9 (872 No. 10 (996 No, 11 (736 No. 12 (652 States banks). banks). banks). banks). banks). (8,725 banks). BESOUKCES. Loans and discounts 566,479 561,481 765,537 445,060 765,477 13,420,315 Overdrafts 1,474 1,304 2,669 1,7.8 2,055 16,991 Customers' liability under letters of credit 154 0 216 9 785 10,688 Customers' liability account of acceptances 19,411 3,312 1,708 2,573 17,646 432,072 Liberty bonds * 50, 736 • 30,572 53,737 45,640 65,678 1,340.082 Otiier United States securities * 147,397 133,935 128,971 94,446 216,945 3,476;676 War savings and thrift stamps actually owned 305 439 419 371 423 6,243 Stock of Federal Reserve Bank • 3,822 2,945 3,731 3,194 4,659 81,376 Other bonds, stocks, etc.* 87,605 55,442 72,945 12,235 119,039 2,880,808 Banking house .' 19,031 15,784 18,097 17,210 24,918 Furniture and fixtures 2,273 2,945 3,249 3,463 5,661 42,785 Other real estate owned 3,565 3,787 3,780 4,469 8,327 68,324 Lawful reserve with Federal Reserve Bank 61,445 48,647 69,371 37,385 75.517 1,632,526 Items with Federal Reserve Dank in process of collection 24,228 4,479 15,290 7,434 337,484 Due from banks and bankers 118,397 143,951 229,173 91,602 174,300 2,136,571 Cash in vault 20,504 19,128 27,115 17,883 32,269 563,788 Exchanges for clearing house, also checks on banks in same place 12,468 9,635 24,317 10,377 23,976 709,454 Outside checks and other cash items 2,912 4,718 5,227 6,758 4,272 74,675 Due from United States Treasurer 2,085 1,912 2,465 2,345 3,121 45,676 Interest earned but not collected 1,562 4,221 2,959 1,537 4,335 57,867 Other assets 196 347 1,054 636 87,400 -i- Total. 1,140,742 1,048,833 1,443,061 814,649 1,557,473 27,810,769 LIABILITIES. Capital stock paid in 79,829 65,543 81,115 69.487 106,121 1,466,268 Surplus fund 48,406 34,341 44,033 38', 559 51,312 1,269,007 Undivided profits, loss expenses and taxes paid 16,054 15,243 18,849 14,767 23,901 458,601 Interest and discount collected but not earned 3,036 2,489 4,544 3,240 1,607 63,088 Amount reserved for taxes accrued 1,356 1,844 1,606 1,187 1,734 59,711 Amount reserved for interest accrued 9.11 1,456 926 270 1,276 26,562 Due to Federal Reserve Bank 29 297 132 30 10,473 Due to banks and bankers 194,696 175,094 310,680 82,243 184,710 3,797,242 Demand deposits 462,1(59 375,157 647,956 404,548 675,766 12,273,002 Certified and cashier's or treasurer's checks outstanding.. 7,578 11,588 19,804 9,119 21,927 435,814 Time deposits , 174,328 302,040 184,072 57,749 270,241 4,092,477 United States deposits 36,329 22,922 30,055 18,511 44,822 884,280 Bills payable with Federal Reserve Bank 47,]57 . 5,672 36,857 42,450 72,802 1,476,397 Bills payable other than with Federal Reserve Bank 1,156 j 969 6,605 15,209 6,399 56,322 Cash letters of credit and travelers' checks outstanding.. 167 | 14 274 65 577 17,955 Acceptances 20,023 j 3,486 1,604 2,476 17,830 451,265 National bank notes outstanding 40,873 j 29,S01 47,102 44,579 62,184 673,386 United States bonds borrowed 7,084 436 3,466 5,508 5,170 171,105 Other bonds and securities borrowed 161 I 133 794 174 319 6,841 Other liabilities 4,829 ! 476 2,422 4,376 8,745 120,973 Total 1,146,742 i 1,048,833 1 1,443,061 814,649 1,557,473 27,810,769 Liability for rediscounts, including those with Federal Reserve Bank. 17,360 ! 2,153 | 34,019 33,586 27,163 527,750 i Exclusive of bonds borrowed by State bank and trust company members. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MAT 1,1919. FEDERAL RESERVE BULLETIN. 519 Abstract of reports of condition of all member banhs of the Federal Reserve System on Mar. 4, 1919, arranged by classes (including 7,756 national banks and 969 State banks and trust companies). [In thousands of dollars: i. e., 000 omitted.] Total Total Central re- Other re- Country United United serve citi- serve city banks States States banks (101 banks (510 (8,114 (8,725 banks). banks). banks). banks). Mar.4,1919. JDec.31,1918. RESOURCES. Loans and discounts $4,494,245 84,053,706 £4,872,364 813,420,3155 |$13,545,960 Overdrafts 968 4,393 11,630 16,991 16,349 Customers' liability under letters of credit 9,208 1,421 59 10,688 26,163 Customers' liability account of acceptances 279,443 136,429 16,200 432,072 460,215 Liberty bonds * 322,516 379,194 638,372 1,340,082 1,588,425 Other United States securities* 1,116,632 1,013,221 1,346,823 3,476,676 1,875,780 War savings and thirft stamps actually owned 176 1,169 4,898 6,243 8,209 Stock of Federal Reserve Bank 22,139 24,967 34,270 81,376 8®,645 Other bonds, stocks, etc.1 815,280 787,733 1,277,855 2,827,547 Banking house 80,483 132,642 175,783 386,860 Furniture and fixtures 1,197 i 8,240 33,348 42,785 41,901 Other real estate owned 7,939 | 26,060 31,325 68,324 67,058 Lawful reserve with Federal Reserve Bank 741,379 i 456,933 434,214 1,632,526 1,654,742 Items with Federal Reserve Bank in process of collection 116,912 i 189,954 30,618 337,484 347,882 Due from banks and bankers 424,009 | 761,193 951,369 2,136,571 2,193,772 Cash in vault 145,847 I 159,869 258,072 563,788 675,180 Exchanges for clearing house, also checks on banks in same place.. 493,192 i 168,635 47,627 709,454 1,194,122 Outside checks and other cash items 19,596 ! 28,238 26,841 74,675 106,676 Due from United States Treasurer 0,260 14,602 24,808 45,676 45,569 Interest earned but not collected 20,073 12,299 25,495 57,867 51,980 Other assets 65,960 14,139 7,301 87,400 135,795 Total - i 9,183,460 j 8,375,037 | 10,252,272 j 27,810,769 27,330,830 LIABILITIES. Capital stock paid in 332,984 ! 434,091 699,193 1,466,268 1,459,095 Surplus fund 413,257 ; 402,706 452,984 1,269,007 1,254,535 Undivided profits, less expenses and taxes paid 135,325 121,708 201,568 458,601 431,782 Interest and discount collected but not earned 21,235 20,471 21,382 63,088 56,987 Amount reserved for taxes accrued 34,916 17,760 7,035 59,711 53,105 Amount reserved for interest accrued 8,878 j 6,748 10,936 26,562 21,109 Due to Federal Reserve Bank 255 ! 2,619 ! 7,599 10,473 10,020 Due to banks and bankers 1,808,244 • 1,557,023 ' 431,975 3,797,242 3,794,055 C D e e r m tif a i n ed d d an ep d o c s a it s s hier's or treasurer's checks outstanding. 4,2 3 0 0 0 0 , , 3 4 0 7 7 3 i 3,44 7 9 9 , , 9 3 8 0 2 3 ,62 5 2 6 , , 7 0 1 3 3 8 12,2 4 7 3 3 5 , , 0 81 0 4 2 13,309,303 Time deposits 445,193 j 1,040,087 2,007,197 4,092,477 3,834,320 United States deposits 381,909 309,764 192,607 881,280 471,632 Bills payable with Federal Reserve Bank 636,677 | 493,874 345,846 1,476,397 1,159,273 Bills payable other than with Federal Reserve Bank 350 i 10,153 45,819 56,322 80,527 Cash letters of credit and travelers' checks outstanding.. 16,009 ! 1,748 198 17,955 38,021 Acceptances 293,696 i 141,063 16,506 451,265 480, 624 National bank notes outstanding 48,823 | 170, (ill 453,952 673,386 676,311 United States bonds borrowed 66,761 i 71,801 32,543 171,105 Other bonds and securities borrowed 1,590 ; 2,716 2,535 6,841 12,390 Other liabilities 30,578 i 40,749 i 43,646 120,973 187,741 Total Liability for rediscounts, including those with Federal Reserve Bank 730,051 Ratio of reserve with Federal Reserve Bank to net deposit liability (per cent) 10.4 1 Exclusive oi bonds borrowed by State bank and trust company members. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

520 FEDERAL RESERVE BULLETIN. MAY 1, 1919. Classification of loans and discounts of State banks and trust companies, members of the Federal Reserve System, as shown by their condition reports for Mar. 4, 1919. [In thousands of dollars; i. e., 000 omitted.] Total, Total, D b N a i ( s n o 3 t k . r 2 i s 1 c ) t . D b N a i ( s 1 n o t 0 k . r 2 i s 2 c ) t . I j D b N a i ( s o 3 n t . 1 r k i 3 s c ) t ; D b N a i ( s n o 7 t k . 3 r i s 4 c ) t . D b N a i n ( s o 3 t k . r 9 s i 5 c ) t . D b N a i ( n o s 5 t k . r 5 s i 6 c ) t . D b N a ( i 2 s n o t 9 k . r 6 i s 7 c ) t . D b N a i ( n s o 4 t k . 3 r s i 8 c ) t . D b N a i ( s n o 7 t k . r 2 i s 9 c ) t . D b N a is ( o n 2 t . k r 9 i 1 s c 0 ) t . ; D b N a i ( s o 1 n t 0 . k r 7 1 s ic 1 ) t .i , D b N a i ( s o n 9 t . k 0 r 1 i s c 2 ) t . b M U S a ( n t a 9 n a i r 6 k t t . e 9 e s 4 s d ) , . b D U S a e ( n t n 9 c a i k 3 . t t e 0 e s 3 s d ) 1 , , 1919. 1918. On demand, not secured by collateral.. 22,625 28,902 | 8,119 11,161 2,243 7,149 22,893 11,249 3,068 3,115 2,194 6,423 129,141 130,808 On demand, secured by Liberty bonds and United States Treasury certificates ol indebtedness 2,416 23,165I 2,675 2,381 787 1,117 7,618 3,512 189 108 364 194 44,526 i 37,312 On demand, secured by other collateral..| 51,716 474,209| 64,311 59,459 9,288 25,402 106,212 36,081 3,097 I 3,029 2,775 5,151 140,730 j 842,729 On time, not secured .by collateral jl46,721 495,589! 24,260 76,504 28,085 42,915 280,630 61,936 20,698 | 19,943 11,959 38,400 1,247,640 !l, 207,064: On time, secured by Liberty bonds and United States Treasury certificates of indebtedness 13,301 281, 216 19,649 27,355 4,291 6,529 31,294 5,364 880 2,486 : 1,774 2,818 376,957 300,270 On time, secured by other collateral 45,785 239.573 17,523 42,734 14,466 29,371 139,680 45,524 14,657 20,410 ! 17,634 21,455 648,812 660,695- Secured by real estate mortgages or other real estate Hens or deeds 31,000 48,379 4,058 65,282 i 5,469 9,120 138.801 19,218 11,044 6,347 3,513 12,951 355,182 362,365 Acceptances of other | Ac b c a e n p k ta s n d c i e s s c ou o n f t e t d his 5,682 4.3,396° I 123 3,374 940 330 5 81 54;597 55,702 bank purchased or discounted 339 13,581 158 161 ! 556 3,043 615 2,125 20,559 17,597 Lo n a o n t s c l a a n ss d i fi d e i d scounts 14,166 132 , i ! 19 303 14,620 16,841 Total shown by reports 319,585 1,642,156 |140;8S5 285,703 | 65,204124,769 1731,420 185,949 53,963 55,443 40,213 87,474 3,732,764 3,631,383 Less adjustment due to inclusion of rediscounts in loan classification by some banks 305 .! 270 20 124 791 705 Total loans and discounts 319,585 1,642,156 j] 40,580285,703 | 04,934124,769 [731,359 .85,938 53,963 55,443 40,193 87,350 3,731,973 3,630,678 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

INDEX. Acceptances: Page. Page. Acceptance credits, report relative to, by gov- Discount and interest rate prevailing in various ernors of Federal Reserve Banks 415 cities ' 482-483 Acceptance liabilities of member banks 440 | Discount operations: Banks granted authority to accept up to 100 | March, by classes of paper 492-497 per cent of capital and surplus 466 j - Member banks, number of, accommodated in Draft covering domestic shipment of goods 471I March 492. Federal Reserve agents to prepare literature on. 416 | Discount rates in effect 510 Holdings, distributed by classes of accepting Division of Foreign Exchange, rulings of. (See institutions 497 Rulings.) Inspection of goods covered bv bill of lading- Earning assets of Federal Reserve Banks, average draft 472 amount of each class held during March 494 Purchases during March, also average rates and Earnings of Federal Reserve Banks: maturities 495 Annual rate, based on March, 1919, returns 494 Substitution of security for acceptances in ex- A [arch, from each class of earning assets 494 cess of 10 per cent limit. 468 _ jt, practice of handling bills of exchange in 453 Agricultural paper held on last Friday in March... 496 England, Bank of, statement showing condition of.. 463 Algeria, practice of handling bills of exchange in.. 453 Exchange rates, foreign 512 Australia, practice of handling bills of exchange in. 447 Export trade, development of 413-414 Austro-Huiigarian Bank, statement showing condi- Failures, commercial, reported 464 tion of 463 Federal Reserve Banks, resources and liabilities Bank of England, statement showing condition of.. 463 of 498-502 Bank of France, statement showing condition of... 463 Federal Reserve notes: Bank of Italy, statement showing condition of 463 Interdistrict movement of 504 Bank of Japan, statement showing condition of 464 Note account of Federal Reserve Banks and Bank o( Java, statement showing condition of 464 agents 502-504 Bank of Netherlands, statement showing condition Fiduciary powers: of --... 464 Granted to national banks 466 Bank of Spain, statement showing condition of 464 Regulation F of Federal Reserve Board 438-440 Bank transactions—debits to deposit account 473-475 Foreign banks of issue, statement showing condi- Belgium, banking in, during period of German occu- tion of 463-464 pation 435-438 Foreign branches of national banks 466 Bills of exchange, practice cf handling in foreign Foreign exchange 413-415 countries * 447-463 Foreign Exchange, Division of, rulings. (See Bonds of War Finance Corporation as "inadmissible Rulings.) assets " within meaning of revenue act of 1918... 472 Foreign exchange rates 512 Branches, foreign, of national banks 466 Foreign securities, plan of establishing market for. Business conditions throughout the Federal Reserve in the United States 412 districts " 416-427 France, Bank of, statement showing condition of.. 463 Certificates of indebtedness, amounts issued in an- German Reichsbank: ticipation of Victory loan 407 Statement showing condition of 463 Charters issued to national banks during April 465 War operations of 430-433 Charts: Gold, imports and exports of 415, 509 Interest rates on commercial paper and on call Governors of Federal Reserve Banks, report by, loans in New York market, 1914-1919 429 relative to acceptance credits 415 War operations of the German Reichsbank... 434 Imports and exports of gold and silver 509 Index of wholesale prices 476-481 Check clearing and collection: Interest rates: Collection facilities of Federal Reserve Banks. 467 On commercial paper and call loans in New Operation of system 511 York market,, 1914-1919 429 China, practice of handling bills of exchange in... 450 Prevailing in various cities 482-483 Clearing-house bank debits '. 473-475 Internal Revenue Commissioner, ruling of, relative Commercial failures reported 464 to War Finance Corporation bonds as "inadmis- Comptroller of the Currency: sible assets" 472 Condition of national banks, statement of, re- Investment trust for promoting a market for purchase garding 446 of foreign obligations 412-413 Loans by national banks on security of Liberty Italy, Bank of, statement showing condition of 463 bonds, statement of, regarding 441 Jamaica, practice of handling bills of exchange in.. 462 Debits to deposit account, weekly figures of 473-475 Japan, Bank of, statement snowing condition of... 464 Denmark, National Bank of Copenhagen, statement Java, Bank of, statement showing condition of 464 showing condition of 464 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

II INDEX. Review of the month—Continued. Labor and wages 410 The investment situation 408 Law department: Development of business 409 Acceptances covering domestic shipment of Wages and labor 410 goods . -.. 471 Movement of prices 410 m Inspection of goods covered by bill of lading A local market for foreign securities 412 draft 472 Investment trusts 412 War Finance Corporation bonds as " inadmis- Development of exchange situation 413 sible assets" within meaning of revenue act The banking position 415 of 1918 472 Gold movement 415 Liberty bonds: The acceptance situation 415 Holdings of, by national banks 428 Rulings of the Division of Foreign Exchange. 469-470 Loans by national banks on security of 441 Rulings of the Federal Reserve Board: Liberty loan, fifth or Victory, circular of Treasury Collection facilities of Federal Reserve Banks. 467 Department giving description of note3, etc. -. 442-446 Stamp tax on drafts drawn against shipments Live-stock paper held on last Friday in March 496 from the United Slates T 467 Maturities: Substitution of security for acceptances in ex- Average of acceptances purchased during cess of 10 per cent limit 468 March 493,495 Inspection of goods covered by bill of lading Average of bills discounted during March ... 492,494 draft 468 Of the several classes of earning assets each Acceptances covering domestic shipments of Friday 494 goods 468 Member banks: Silver, imports and exports of 509 Abstract of reports of condition of 515-520 South Africa, practice of handling bills of exchange Condition reports of banks in selected cities.505-508 in 459 Number of, discounting during March 492 Spain, Bank of, statement showing condition of 464 Number of, in each district 492 Stamp tax on drafts drawn against shipments from Money, stock of, in the United States 510 the United States : 467 Morocco, practice of handling bills of exchange in.. 457 State banks and trust companies admitted to sys- National banks: tem during month .".. 465 Charters issued to, during the month 465 Sterling exchange 413-414 Comptroller's statement showing condition of.. 446 Straits Settlements, practice of handling bills of ex- Deposits and holdings of war paper 428 change in ". 452 Fiduciary powers granted to 428 Sweden Riksbank, statement showing condition of. 463 Foreign branches of 466 Swiss National Bank, statement showing condition Loans by, on security of Liberty bonds 442 of 1 464 Netherlands" Bank of, statement showing condi- Tax, stamp, on drafts drawn against shipments from tion of 464 the United States 467 Norwav, Norges Bank, statement showing condition Trade, physical volume of 484-491 of...". : 464 Trust companies admitted to system during the Open market operations—acceptances, United month 465 States bonds, certificates of indebtedness, and Trustee, executor, etc., powers granted. (See Fimunicipal warrants purchased during March... 393-492 duciary powers.) Physical volume of trade 484-491 Victory loan 407-4.08 Prices: Circular of Treasury Department relative to.. 442-446 Index of wholesale 476-481 Description of notes, etc 442-446 International price levels, adjustment of 411 Wages and labor 410 Movement of 409,410 War Finance Corporation, bonds of, as "inadmissible Regulation F of Board., relating to trust powers of assets" within meaning of revenue act of 1918.. 472 national banks 438-440 Resources and liabilities: War paper: Federal Reserve Banks 498-502 Amount discounted during March 494 Foreign banks of issue 463-464 Amount held on last Friday in March.., 496 Member banks 505-508 Holdings of, by national banks 428 Review of the month: Wholesale prices, index of: The Victory loan 407 In various countries 476-478 Government as commercial borrower 408 In the United States 479-481 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis