Federal Reserve Bulletin, 1919-10

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

FEDERAL RESERVE BOARD. EX OPFICIO MEMBERS. W. P. G. HARDING, Governor. CARTER GLASS, ALBERT STRAUSS, Vice Governor. Secretary of the Treasury, Chairman. ADOLPH C. MILLER. JOHN SKELTON WILLIAMS, CHARLES S. HAMLIN. Comptroller of the Currency. HENRY A. MOEHLENFAH. GEORGE L. HARRISON, General Counsel. W. T. CHAPMAN, Secretary. I W. W. HOXTON, Executive Secretary. R. G. EMERSON, Assistant Secretary. II. PARKER WILLIS, ! Director, Division of Analysis and Research. W. M. IMLAY, Fiscal Agent. M. JACOBSON, Statistician. W. W. PADDOCK, Chief, Division of Operations and Examination. J. E. CRANE, Acting Director, Division of Foreign Exchange. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

OFFICERS OF FEDERAL RESERVE BANKS. Federal R o e f s - erve Bank Chairman. Governor. Deputy governor. Cashier. Boston Frederic H. Ciirtiss... Chas. A. Mores.. Chas. E. Spencer, jr.. W. Willett. C. C. Bullen New York. Pierre Jay Benj. Strong, jr. R. H. Treman L. II. Hendricks. J. H. Case L. F. Sailer J. F. Curtis Philadelphia R. L. Austin E. P. Passmore. Wm. H. Hutt..jr. W. A. Dyer. Cleveland D.O.Wills E. R. Fancher. M. J. Fleming1. H. G. Davis. Frank J. Zurlinden Richmond Caldwell Hardy. George J. Seay. C. A. Peple Geo. H. Keesee. R. II. Broaddus Atlanta • Joseph A. McCord. M. B. Wellborn.. L. C. Adelson M. W. Bell. Chicago | Wm. A. Heath J. B. McDougal.. 0. R. McKay S. B. Cramer. B. G. McCloud1 St. Louis ! Wm. McC. Martin D. C. Biggs 0. M. Attebery J. W. White. Minneapolis ! John H. Rich R. A. Young S. S. Cook. Kansas City i Asa E. Ramsay J. Z. Miller, jr... C. A. Worthington1.. J. W. Helm.2 Dallas ." !Wm. F. Ramsey R. L. VanZandt. Lynn P. Talley Lynn P. Talley. San Francisco • John Perrin J. IT. Calkins Wm. A. Day Ira Clerk.3 1 Assistant to governor. 2 Acting cashier. 3 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 ; Ray M. Gidney. Louisville branch... W. P. Kincheloe. Memphis branch... J. J. Heflin. Cleveland: Little Rock branch. A. F. Bailev. Cincinnati branch j L. W. Manning. Pittsburgh branch ! Geo. De Camp. Kansas City: Omaha branch. 0. T. Eastman. Richmond: I Denver branch. 0. A. Brukhardt. Baltimore branch Morton M. Prentis. Dallas: Atlanta: E3 Paso branch \ R. R. Gilbert, New Orleans branch. Marcus Walker. Houston branch Sam R. Lawder. f Jacksonville branch. Geo. R. De Saussure. Birmingham branch. A. E. Walker. San Francisco: Salt Lake City branch... C. H. Stewart. Chicago: Seattle branch C. J. Shepherd. Detroit branch R. B. Locke. Spokane branch C. A. McLean. 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. Xo 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 . 909 Business and financial conditions: Summary 921 Special reports by Federal Reserve agents. . . 927 Statement of the Secretary of the Treasury on the budget system -. 937 Course of the price of silver and currency conditions in India 945 Exports from the United States before and after the outbreak of the war 952 Official: Issues of Treasury certificates of indebtedness in pursuance of program outlined by the Secretary of the Treasury 958 Conversion of 4 per cent coupon Liberty bonds 958 Fiduciary powers granted to national banks 960 Banks granted authority to accept up to 100 per cent of capital and surplus 961 State banks and trust companies admitted to the system 961 Charters issued to national banks 961 Foreign branches of American banks 962 Rulings of the Federal Reserve Board. 963 Law department: Status of Federal banking legislation 965 Amendment to the Federal Reserve act 965 Status of antiproiiteering legislation 967 Amendment to Alabama banking laws 967 Sale of warehouse receipts representing whisky ~. 968 Miscellaneous: War securities and war paper held by banks on June 30, 1919 942 Discount rates of the Federal Reserve Banks during the war period 943 Commercial failures reported 960 Crop statistics, by Federal Reserve districts 962 Statistical: Wholesale prices in the United States 969 Discount and interest rates prevailing in various centers 972 Physical volume of trade 974 Debits to individual account, August-September.. 983 Discount and open-market operations of the Federal Reserve Banks 987 Operation of the Federal Reserve clearing system 992 Resources and liabilities of the Federal Reserve Banks 993 Federal Reserve note account.. 997 Condition of member banks in selected cities 999 Imports and exports of gold and silver 1005 Estimated stock of money in the United States 1006 Loans and discounts of State bank members 1007 Condition of foreign banks of issue, 1913-1919 1007 Discount rates approved by the Federal Reserve Board 1006 Diagrams: Note circulation, metallic and other reserves, also price of silver per ounce, in India, 1914-1919 951 Par point map 992 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FEDERAL RESERVE BULLETIN VOL. 5 OCTOBER 1, 1919. No. 10 REVIEW OF THE MONTH. At the beginning of the month it was calculated that the aggregate amount of certificates Fiscal operations of the Government during maturing or called for redemption during the September were unusually large Public finance month was in the neighborhood of 1,800 miland included issues on Septemin September. lions, and that this amount, somewhat reduced ber 2 of $573,841,500 of five by exchanges and cash redemptions, would be months' 4-J per cent loan certificates and on fully covered from the cash in bank and pay- September 15 of two series of tax certificates, ments on account of Victory loan subscriptions, of which one for six months, and bearing interest also income and profit taxes due on September at the rate of 4-1- per cent, yielded $101,131,500, 9 and 15, respectively. In his circular of Sepand the other, for 12 months, and bearing intertember 8 the Secretary of the Treasury anest at the rate of 4-J- per cent, yielded $657,nounced that there remained no other ma- 469,000. An analysis of the amounts taken in turities of certificates to provide for prior to each Federal Reserve district of each of the 1920 as the certificates maturing December 15, three series is given in the following exhibit: ? of which over 750 millions had been issued, were more than covered by the income and Fede d r i a s l t r R ic e t s . erve C S - e 1 r 0 ie 2 s 0. Series T-9. Series T-10. All 3 series. profit tax installment due on that date. The total amount of Treasury certificates outstand- Boston $45,76.5, 500 85,70-1,000 §31,752,000 §83,221,500 ing at the end of September is slightly over 3.5 New York 252,079,000 25,582,500 412,319,000 690,580,500 Philadelphia.... 27,15"). 000 5,503,000 54,580,500 87,304,500 billions (as against 6.25 billions on April 30) Cleveland 39,088; 500 8,7S8,000 53,802,000 101,678,500 Richmond 10,493,500 2,999,500 10,339,500 23,832,50C of which only about 1.6 billions are loan cer- Atlanta 19,312,000 3,706,000 5,6.18,000 28,636,000 Chicago 03,193,500 24; 097,500 35,172,000 122,463,000 tificates requiring to be refunded. St. Louis 17,975.500 3,614,500 12.232,500 33,822,500 Minneapolis 16,000,000 4,750,000 7,750,000 28,500,000 In view of the success attaining the most Kansas City 16,000,000 2,835,000 4,105,000 23,000,000 Dallas 23,179,000 3,491,600 8.232,500 34,903,000 recent tax-certificate issues, which realized San Francisco... 43,000,000 10,000,000 21; 500,000 74,500,000 757.5 millions in the three days during which Total 573,841,500 10J,131,500 657,469,000 1,332,442,000 subscriptions were taken, and the very large Redemptions of outstanding Treasury cer- cash balance of the Treasury, it is expected tificates were considerably larger and included: that no new certificate issues will have to be (1) The redemption on September 9 (when a resorted to during the month of October. 20 per cent installment on the Victory loan was More than this, material improvement in the due) of outstanding balances of the last two financial position of the Treas- Outlook for series of certificates issued in anticipation of ury and the favorable condiliquidation. the Victory loan and due Septembei 9 and tions on which recent issues of October 7, respectively. (2) The redemption loan certificates have been placed carry conon September 15 (when the third installment firmation of the views expressed by the Secof the income and war profit taxes was pay- retary of the Treasury in his letter of July 25, able) of the outstanding balances of two series and repeated in his letter of September 8, that of tax certificates. the borrowing operations incident to the financ- 909 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

910 FEDERAL RESERVE BULLETIN". October 1,1919. ing of the war would be carried to completion As the period of war financing begins to apwithout another great funding loan, So far as _. . .. proach its end, the Federal Re- Discount policy. x ^ , ', . _ such operations are concerned, they may be serve Banks will again be in a said to have come to a close with the Victory position to shape their policies without being loan. Such financing as is still to be provided under the necessity of giving first consideration can clearly be carried through by issues maturto the interests or needs of the Treasury. Since ing on tax dates. the entry of the United States into the great The outlook is distinctly encouraging, there- war, the Federal Reserve Banks have from the fore, for an improvement in the investment necessities of the situation utilized their restatus of the outstanding funded securities of sources in every legitimate way in support of the Government and, with it, for an improve- war finance. Their discount policy, in parment in the loan and investment accounts of ticular, has been shaped first with the view of the banks. The extent to which the banks of facilitating the placement of the great issues of the country subscribed to war bonds of the both long-term and short-term obligations different issues which they did not intend as a brought out by the Treasury, and secondly with matter of policy to carry permanently as a part the view of stabilizing the market for Liberty of their long-term investments, can not be ac- bonds. With these objects in view, differential curately determined. Neither can the volume rates (details of which are elsewhere presented of loans made by the banks to customers on in the BULLETIN) have been maintained at Fedaccount of their subscriptions to Government eral Reserve Banks in favor of borrowings bywar issues and still outstanding be accurately member banks either on their own or their determimed. Details of an estimate made for customers7 notes, when secured by war oblithis purpose and elsewhere presented in the gations. BULLETIN indicate that the volume of unab- The effect of this policy of differential rates sorbed war securities is undoubtedly large. has reflected itself in the successful placement Liquidation of these war finance investments of five great loans aggregating $21,500,000,000, and loans is clearly a necessary preliminary to and many issues of tax and loan certificates. any large and genuine improvement in the The preferential treatment thus extended to banking and credit situation. Such liquidation borrowers on Government finance account has means the purchase of war securities by actual justified itself not only by the results achieved investors. That such liquidation will be stimu- but also was justified by the unquestionable lated through improvement in the market for fact that during the war and until the financial Government bonds is clear. The recent im- operations incident to the war were completed provement in the Government bond market, the main business of the Nation was the efficient foreshadowing as it probably does a progres- prosecution of the war, and the first duty of its sive improvement because of increased realiza_ financial and credit system, therefore, the contion that Government long-term financing is stant support of the Government's financial over, is, therefore, of good augury for the gen- program. eral banking situation. The disappearance of the Treasuiy from the long-term loan market and the rapid reduction Liquidation, in the natural course, of war in its requirements for short-term accommoloan acccounts seems likely before long to bedation foreshadows the approach of the time come a characteristic of the - banking trend. when the financial operations of the Govern- Whether such liquidation, however, will result ment will cease to be the important factor in in a lasting decline in the total volume of outshaping Reserve Bank policies which they standing bank credits will depend upon the have been, and Federal Reserve Bank rates state of industry and trade and upon the moveonce more will be fixed solely "with a view of ment of prices. accommodating commerce and business,'7 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

October 1,1919. FEDERAL RESERVE BULLETIN. 911 The extent to which Federal Reserve Bank The problem of controlling the volume and „ rates may normally be expected uses of credit in a country with so much Expansion and , & ,. „ . ,-. diversity of business interests and business x u discount rates. to be "effective," in the sense temper as the United States is far from simple in which that term is used in and far from certain of solution. Experience England and Continental Europe, still remains alone can determine whether and in what manto be determined. Our experience under the ner a technique of control through rates can Federal Reserve system is too brief to enable be developed which will secure the desired definite conclusions to be drawn with reference results. The objects to be obtained are, howto this matter. It seems doubtful, however, ever, clear and vastly important. They are whether, for a long time to come and taking the to regulate the volume and uses of credit so as country as a whole, there will be any such close to give to productive industry at all times the connection of Federal Reserve Bank rates with beneficial effects of credit stimulus and support the volume of credit in use as was to be noted, without, however, opening the way to the for example, in prewar days in England, the costly evils of credit and price inflation. home of central banking. Our nearest ap- The dependence of prices on credit has had proach to an effective Federal Reserve Bank convincing exemplification in rate was reached in the closing months of the Credit and the past few years. That exprices. year 1916. pansion of credit has been a The habitual temper of the American busiconsiderable factor in our financial and price ness community is sanguine and American situation has often been pointed out in the business is, for the most part, done on liberal BULLETIN. margins. The bulk of the requirements for The way in which credit affects prices nevercredit facilities comes from industry and trade theless requires discriminating analysis. Of itmainly domestic in its origin and character. self and alone, credit can not be said to deter- Such a condition does not make for sensitivemine prices. Credit affects prices only as it is ness to the influence of changing rates such as used in the purchase and payment of things. was the case in England, where much business It can affect prices, therefore, only when acting is done on a narrow margin of profit and where in conjunction with other favoring conditions. banking resources were normally employed There are times when the banking organizalargely in the international loan market. tion has large reserves of credit power, and yet At any rate it seems fairly clear that little industry and trade being "slow" there is little desirable restraining influence could have been demand for additional credit and consequently exercised by Federal Reserve Bank rates in little credit is added to the volume of credit in recent months. While repeated tendencies use and consequently little effect is exerted by toward speculation of one kind or another have credit in changing prices. A bank may offer manifested themselves and, at times, given rise a customer credit but it can not make him take to an undesirable situation, there is no reason it. It is the credit which is taken and used, to believe that an advance of rates would have not the credit which is offered, that counts in held these tendencies in check, at any rate no such advances as could have been undertaken the movement of prices. There are other without serious injur}^ to legitimate business times when the reserves of credit power are and desirable enterprise which were entitled low and yet the demand for credit, because of to encouragement and support. There is no buoyancy in industry and trade, is large and ready method in reserve banking by which the the volume of credit in use consequently large use of reserve facilities can be withheld from and its influence on prices unmistakable. The use in undesirable lines of activity without, volume of credit in use depends, therefore, also, being withheld from use in desirable lines. quite as much upon the state of trade as it Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

912 FEDERAL EESERVE BULLETIN. October 1,1919. does upon the state of credit. The limits The responsiveness of the volume of Federal within which the use of credit can be forced Reserve note circulation to flue- Federal Reserve , ,. . , . by the banks are pretty narrow. Credit, as tuating requirements is again noteg 3uch, can not, therefore, be said to be the cause in process of demonstration. A of price changes. By enabling and facilitating year ago attention was called in the BULLETIN transactions in the purchase and sale of mate- to the increase of Federal Reserve notes in the rials and goods and labor, which require the months synchronizing with, the crop-moving use of a large volume of purchasing media, period. The same phenomenon is now being credit nevertheless is a decisive factor in the repeated. Beginning with August 1, 1919, price situation. It is the business of the when the total volume of outstanding Federal banking organization to create and supply Reserve notes was $2,506,820,000 (the year purchasing media. Thus, at times, when trade 1919 opening with a circulation of is brisk and the spirit of industrial enterprise $2,647,605,000, as reported on January 3), runs high, the increased volume of credit there has been a steady increase in the volume supplied by the banks sustains and facilitates, of Reserve notes in circulation, week by week, if it does not indeed induce, the purchasing as seen in the following statement showing an movement, and thus supports the rise in price increase for the period August 1 to September levels. Without such an enlargement in the 26 of $148,534,000: volume of circulating credit or purchasing August 1, 1919 §2, 506,820,000 media in other suitable forms, the accommoda- August 8 2,532,057,000 tion of prices to changing conditions in a period August 15 2, 540,904,000 August 22 2, 553, 534,000 of activity would be impeded. While credit, August 29 2, 580, 629,000 therefore, can not create a situation which September 5 2, 611, 697,000 results in high prices, it is equally true that a September 12 2, 621,228,000 situation which results in high prices can not September 19 2, 621, 258,000 eventuate without the assistance and media- September 26 2, 655, 354,000 tion of credit. While there must be a desire While seasonal requirements thus appear to for the use of credit before credit can expand, be the principal cause of short-period changes once under way an expansion of trade gets in the volume of outstanding Federal Reserve so much encouragement, stimulus, and support notes, the fundamental influence determining from an expansion of credit that it is at times their normal volume is the movement of general difficult to sB,y which is more cause and which prices and the volume of outstanding bank is more effect, so closely interdependent and credit. No mathematically definite and quaninterwoven are the two. Questions of theo- titative relationship between the volume of retical formulation apart, however, the close bank credit and the volume of circulating; connection of credit and prices, or of prices notes can be specified, but a close connection and credit, does not admit of reasonable doubt. between the two exists. The connection is What is still to be tested is the kind and indeed so close that an increase in the volume measure of control at once effective and bene- of circulating notes may ordinarily be expected ficial in its effects that can be exercised on to follow closely upon an increase in the credit through the instrumentality of Federal volume of circulating bank credit. This is Reserve Bank rates and operations—that is, particularly true in times when a close connecthe extent to which the volume and character tion is observed between changes in the volume of Federal Reserve Bank operations will be of bank credit in use and general prices. At sensitively responsive to changes of rate. such times, and generally in times of increasing Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

October 1,1919. FEDERAL RESERVE BULLETIN. 913 trade activity, prices at wholesale rise first. will fall as savings accumulate and liquidation In their wake there follows of necessity a rise of the war-loan accounts of the banks ensues of retail prices and in consequence a need for and production advances to the point where it increase of circulation. It may be stated as a more nearly matches the great increase in the general proposition, therefore, that changes volume of circulating or purchasing media in the volume of currency in times of expan- which have been called forth during the sucsion follow price changes. They do not pre- cessive emergencies of recent years. cede them. There is, therefore, no foundation The manner in which liquidation of the warin present American experience for the view loan business of the banks will operate a reducstill sometimes urged that changes in the vol- tion of currency may be explained. It should ume of currency are responsible for changes in also be noted that such liquidation will be most prices. effective if those who are now debtors to the While it may be true as a theoretical propo- banks on account of Liberty loan subscriptions sition that prices at retail could not rise without take up their obligations out of their own savan increase in the volume of currency and that ings. Repayments of funds borrowed from the refusal to supply currency might impede an banks may take the form either of bank-deposit upward movement of retail prices (though it is credit or of Federal Reserve notes. In the much more likely that refusal to supply cur- latter case, Federal Reserve notes would begin rency would lead the community to adopt to accumulate in the hands of the member devices such as due bills or bearer checks, etc., banks. They would take them to the Federal of small denominations to meet the demand for Reserve Banks for credit to their reserve accurrency substitutes), it is also true that such a counts. Since the reserve accounts of most of method of controlling prices, if successful, the member banks have been brought to their would be at the cost of business disaster. present levels through extensive rediscounting, Prices at wholesale are not appreciably affected the return of the Federal Reserve notes to the by the volume of pocket money. It is the Federal Reserve Bank would be in effect a volume of circulating bank credit that influ- reduction of the member bank's liability to its ences the trend of wholesale prices. Restric- Federal Reserve Bank and a retirement of the tion of bank-note issues would not, therefore, Federal Reserve note through such process of act as a direct restraint upon the movement of redemption. There would thus be a direct wholesale prices. Such effect as might con- reduction in the volume of Federal Reserve ceivably be exerted from this source would at notes in circulation and a corresponding reducbest be indirect, and would effectuate itself by tion of rediscounts. In the former case, where what would be tantamount to a breakdown in the debtor of the member bank made payment the organization of trade by making it difficult by credit, there would take place a reduction for retail prices to adjust themselves to changes, in first instance of the volume of the member proceeding from more or less fundamental in- bank's liabilities and in the second instance fluences, in the movement of wholesale prices. of the Federal Reserve Bank's deposit liabili- The pocket currency of the country is a func- ties—and, it may be added, on the asset side tion of the general money volume of the coun- of the statement a reduction of its discounts. try's business. To attempt to turn it into an The whole volume of outstanding bank credit instrument of credit control would be a per- would thus contract itself, and the same causes version of the currency function of the banking- that brought about the contraction would system. result in a lowering of prices, which would The correction of the price situation will necessitate a smaller volume of pocket curcome in a more natural and economic manner. rency and a return flow of redundant currency Prices at retail will fall to more normal levels to the banks and eventually to the Federal as prices at wholesale do. Prices at wholesale Reserve Banks. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

914 FEDERAL RESERVE BULLETIN. October 1,1919. Taking things as they are, the bulk of out- have been experienced in recent months, some standing Federal Reserve notes may properly considerable mitigation of the cost of living be regarded as supplied to the borrowing mem- situation may be expected and, indeed, is ber banks against rediscounts. Expense in the already in sight, The activity of "fair price" shape of a discount charge is, therefore, entailed committees in different parts of the country, to member banks in obtaining increased sup- local action by the States, investigations and plies of notes. While Federal Reserve notes publicity by the Federal Trade Commission, are freely issued to the banks in the sense that and prosecution by the Department of Justice, no limits have been imposed upon the amount, under Federal law, which, as elsewhere noted, they are not issued without cost. As increases is in process of amendment, are already proin the volume of Federal Reserve note cur- ducing results. FThe problem of reducing the rency, particularly in times of expansion, will cost of living is, however, mainly that of be obtained against rediscounts or* bills pay- restoring the purchasing power of the dollar. able of member banks, the Federal Reserve The dollar has lost purchasing power because note, as long as it is out, involves serious cost expansion of credit, under the necessities of to the bank that takes it. The member bank, war financing, proceeded at a rate more rapid therefore, has every inducement, as notes than the production and saving of goods. The accumulate in its hands, to use them in reducing return to a sound economic condition and one its borrowings from, the Federal Reserve Bank. which will involve as little further disturbance Thus has an automatic machinery been pro- of normal economic relationships as possible vided, operating by the method of profit and will be a reversal of the process which has loss, for sending into retirement and redemption brought the country to its present pass. In such part of the Federal Reserve note circu- other words, the way in must be the way out7 lation of the community as may at any time As the way in was expansion of credit at a raftT be in excess of requirements. The main con- more rapid than expansion of production and dition, as already observed, determining cur- saving, so the way out must be an increase in rency requirements is the level of prices. The production and in saving. The effect of reduction of the volume of the currency is, increased production will be to place a larger therefore, a price problem far more than the volume of goods against the greatly enlarged reduction of prices is a currency problem. volume of our purchasing media and thus That the high price levels which have been to reduce prices. The effect of increased attained in the United States saving will be a reduction in the volume of Present a grave situation is purchasing media in use and, by consequence, robtem° clear from the attention which a reduction of prices also. current discussion of the causes of industrial "What is needed is the restoration of a unrest is directing to the cost of living problem. proper balance between the volume of credit It presents the most urgent and immediate and the volume of goods,?; said Gov. Harding, phase of the problem of postwar business and speaking before the annual convention of the industrial readjustment. It promises to re- American Bankers Association at St. Louis, main a persistent phase of postwar conditions September 30. "Because of the war financing unless its nature and cause are understood and of the Government it is not practicable to rea rational economic attitude toward it is duce the volume of credit except gradually, developed. and the best and probably the only remedy for So far as the profiteering practices, which the present unrest is to increase the volume of current discussions assume have developed goods and the facilities for their distribution. widely and rapidly since the armistice, are Shorter hours and higher wages do not tend to responsible for the price aggravations which increase production, but rather the reverse, Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

October 1,1939. FEDERAL RESERVE BULLETIN. 915 and strikes and walkouts are doubly harmful Industry in Chicago September 24, Mr. Miller, in that they stop production without mate- of the Federal Reserve Board, said: rially reducing consumption." "There has been no general policy, either The cost-of-living problem on its financial public or private, governing the action of industry in the matter of wage adjustment to side is misconceived unless it is conceived as changed living conditions. All sorts of influthe problem of restoring the value of the dolences have been at work in determining the lar. To accept the depreciation worked in the outcome; the maintenance of the standard of dollar by war conditions and to standardize the living has not been the controlling consideradollar of the future on this basis would be to tion. The state of the labor market in different industries has at times resulted in increase ratify the inflation wrought by the war and the of wages more than the increase in the cost of injustices it produced. No artificial solution living, and at other times wages have lagged. for an economic situation of this kind is likely * * * It must be said that there has been to commend itself to the better judgment and on the whole a lack of close correspondence of changes of wages with changes in the cost of the sense of equity of the country, even could living. some artificial method of dealing with the ques- "The facts and indications, fragmentary as tion of monetary depreciation be devised which they are reveal a situation which from every ; would not bring in its train a crop of new diffi- reasonable point of view must be regarded as culties and problems, unsatisfactory. Much as was achieved in certain industries during the war through the So far as the main incidence of the high cost action of public or private agency, the main- Cost-of-living of livil)S is t0 be found in the tenance of the standard of living does not index and wage ranks of labor, its correction occupy the decisive place it should in the adjustment. presents an industrial problem determination of wages. Chance and circumrather than a monetary problem—a problem to stance play too large a r61e, and principle too little. Wages must be regarded as the first be met not by a change in the monetary standcharge on industry, and the maintenance of at ard but by a change in the machinery of indusleast those living standards which were custrial remuneration. The successful handling of tomary before the war must be made secure. the cos t-of-living situation, so far as concerns The first duty of the Nation is to preserve the labor, is in first instance a matter of determin- health and strength of its workers. The standard of living is, therefore, a matter of ing the extent to which the actual cost of living public and national concern as well as of indito different grades of labor in different parts of vidual concern. The Nation can not afford, the country has been increased by rising industry can not afford, to run the risk of prices, and, secondly, of devising some effective impairing its working forces through lack of "method of adjusting money wages to changes some effective method of adjusting wages to the cost of living. This is, in an immediate in the money cost of living. The former is a sense, the most pressing aspect of the cost of technical statistical problem and is having the living problem with which we are confronted. attention of the Bureau of Labor Statistics, Close study should, therefore, be given by which is accumulating data on the basis of different industries in every section of the which can be constructed a cost-of-living index country to methods of handling the problem in an effective and equitable way. Beginnings number that will show variations in total exhave been made in some business and industrial penses of families dependent upon wages beenterprises, but the problem should be taken cause of price changes. The latter is the prac- hold of on a systematic and national scale in tical problem of improving the status of labor 1 order that the needed results shall be achieved. by the establishment of new working princi- Some mechanism by which wages may promptly be adjusted to changes in the cost of ples governing the relations of employers and living must be accepted as an essential part of employed. the American wage system. * * * Such Speaking on this subject at the annual meet- action is particularly urgent in view of the ing of the American Association of the Baking extremely uncertain and disturbed course Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

916 FEDERAL RESERVE BULLETIN. October 1,1919. which prices and the cost of living seem likely the further process of her readjustment. Nor to follow for a good many years to come, or is it clear what should be done in support of until the affairs of the world are once more in a certain of our industries which attained constate of settled equilibrium. It will not do to spicuous importance as export industries under leave the adjustment of wages to changes in the cost of living, either to the slow and uncer- the pressure of the artificial situation produced tain action of the forces of competition, or to by the war. It seems highly probable, howthe costly and disruptive action of industrial ever, that new outlets for the excess products warfare. So far as the strike is a method of of these industries will have to be found if anysecuring an adjustment of wages to rising thing approaching their volume of production prices, it should become an obsolete feature of the American industrial system." during the war is to be sustained. In the meantime it should be noted that Little change is reflected in the recent volume some improvement in our cost of living situaof our foreign trade shown by tion is likely to result from the diminished .™eexportsitu- the latest statement of the a outflow of goods to countries not in a position Bureau of Foreign and Domesto make payment by return shipments of goods. tic Commerce covering the month of August. Elsewhere in the BULLETIN are given the re- Exports for August were $646,259,000, as comsults of an attempt to estimate the growth of pared with $570,083,000 for July, the first the physical volume of our export trade in month in the fiscal year 1920, and, $602,090,000, recent years by eliminating the price factor. the monthly average for the fiscal year 1919. While the data available for such an estimate Largely increased exports, as compared with are not as comprehensive as might be desired July, are shown for unprepared foodstuffs, parand the results are not, therefore, to be taken tial manufactures, and manufactures ready for as conclusive, they are believed, nevertheless, consumption, while smaller exports for the to be of very great value as giving a more month are shown for prepared foodstuffs, mainly faithful picture of changes in our export situameat and dairy products. Raw cotton exports tion than can be derived from totals stated in show a further decline for the month, while exterms of money value. Taking the prewar ports of mineral oil, cotton goods, and automofive-year period 1910-1914 as a base for purbiles show considerable gains. August imports poses of comparison and noting the increase were $307,331,000, as compared with $344,for each of the succeeding five years as com- 000,000 for the month of July and $257,990,000, pared with the prewar average, the following the monthly average for the fiscal }^ear 1919. index numbers are reached for changes in the Excess exports for August were $338,928,000, physical volume of some of our leading exports: compared with $226,083,000 for July and $344,100,000, the monthly average, for the 1910-1914 100 fiscal year 1919. 1915 126 191G.- 121 The first two months of the current fiscal 1917 123 year are, therefore, characterized by a diminu- 1918 109 1919 135 tion in the outward movement of goods. It is clear that the large American credits at the It is noteworthy that the fiscal year 1919 disposal of foreign governments and their dis- shows the greatest increase over the prewar position to- draw heavily on American supplies average—an increase of 35 per cent—a rate of for the purpose of l stabilizing n the first steps increase almost fourfold that shown for the in the process of after-war readjustment, were preceding fiscal year 1918. Such a gain in the mainly responsible for the heavy outflow of rate of increase suggests that heavy exports goods during the last fiscal year. It is not yet (effectuated for the most part by credit adclear how much should be undertaken in further vances) to Europe have been a very considerfinancial and economic support of Europe in able factor in our cost of living situation. It Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

October 1,19.19. FEDERAL RESERVE BULLETIN. 917 is also noteworthy that an estimated 35 per Changes in the condition of selected memcent of the physical volume of exports in the ber banks affected the United last fiscal year consisted of foodstuffs. situation. *" 1Kg States security account, which, In the field of foreign financing there are to as the result of the above debe noted the regular weekly scribed treasury operations, shows a reduction Janfexchange. brings of British and Fren<* of over 110 millions. Loans secured by United States war securities (war paper) went up 22.7 treasury bills, the acceptance millions, and slightly more in New York City, by the Bank of Montreal on behalf of the India while loans secured by stocks and bonds show Government of tenders for immediate telean increase of over 100 millions, largely outside graphic transfers to India of about 11,150,000 of New York City, and other loans and investrupees at rates ranging between 41.98 and 43,12 ments an increase of 340.1 millions, of which cents per rupee. On September 4 about 10 over 80 per cent constitutes the increase at the millions of the Belgian 90-day export credit New York City banks. While there had been were renewed. No major operations have a steady increase in the loan and investment been effected, though financing of some Geraccount during the weeks under review, the man orders, also investments on a small scale largest increases occurred about the middle of in German public securities, are reported. September, when the third tax installment Fluctuations in foreign-exchange rates conbecame due. Aggregate amounts of United tinued during the month within wide ranges, States war securities and war paper, held by though quotations at the close of the month, selected member banks on September 19, were with the exception of French franc quotations, 3,405.9 millions, or 88.8 millions less than five show but little change from those given at the weeks before. Of the total loans and investclose of August. The biggest drop occurred ments of these banks the combined amount of about the middle of the month, when the cable Government war securities and war paper conrates for the pound sterling declined to $4.14, stituted 22.3 per cent, as against about 20 per those for francs to 9.20, and those for lire to cent, the share of loans secured by stocks and about 10. Since then an improvement took bonds. place, sterling cable rates at the close of the month quoting at $4.19, francs at 8.24, and For the five weeks between August 22 and lire at 9.70. Silver shows a steady increase in September 26 the Federal -Reserve Banks show price from 108J on August 30 to 118| on the a total increase of about 100 millions in earning last of September. assets, largely discounts other than war paper, increased borrowings of member banks being Movement of leading foreign exchange rales during September. reported by the Chicago, Atlanta, St.Louis, and Kansas City Federal Reserve Banks, appar- Quotations Per ently in connection with the crop movement in Gil— cent High Low be- dur- dur- these districts. War-paper holdings increased Par. • low ing ing par Sep- Sep- by 9.5 millions, while acceptances on hand fell Aug. Sept. on tem- tem- 30. 30. Sept. ber. ber. off 20.4 millions during the five weeks under 30. review. Total earning assets of the Federal 4.8965 Pound sterling.,. dollars.. 4.21 4.19 13.9 4.27 4.14 Reserve Banks show an increase of over 100 5.18 French francs. per dollar.. 8.11 8.50 39.1 7.80 9.20 millions, and on September 26 stood at 2,503.1 5.18 Italian lire do 9. 70 9. 65 46.3 9.45 10.0 23.8 Berlin mark cents.. 5.0 4.6 80.7 5.0 3.2 millions. 19.3 Spanish peseta do 19.12 19.15 .8 19.35 18.90 5.18 Swiss francs.. .per dollar.. 5.655 5.60 7.5 5.45 5.69 During September about 79.4 millions of gold 40.2 Dutch florin cents.. 37.375 37.75 6.1 39.375 37.125 26.8 Swedish crown .. . .do 24. 50 24.65 8.0 24.85 24.25 out of a total of 160.6 millions held on the con- 32.44 Indian rupee do 44.0 43.5 i 34.1 45.25 43.25 Shanghai taol do 135. 5 136.0 137.0 130. 5 tinent for the account of the Federal Reserve 54.62 Brazilian milreis do 25.50 25.875""52"6 25.875 25.0 42.46 Argentine peso2... .do 42.35 42.35 .3 43. 58 42.35 Bank of New York and representing payments 1 Above par. 8 Paper. for food furnished to the German Government Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

918 FEDERAL RESERVE BULLETIN. October 1,1919. by the United States Grain Corporation were $16,031,000 were consigned to Japan, $9,transferred to the Bank of England vaults, the 531,000 to China, $6,489,000 to Hongkong, amounts thus transferred being shown as and $3,792,000 to British India, the remainder additions to the reserve banks7 gold reserves. going principally to France, Venezuela, and Further gains in the gold reserves are due to Dutch East Indies. Since the removal of the gold deposits by the Treasury. These increases gold embargo on June 7 total gold exports are partly offset by export withdrawals of gold. have amounted approximately to $193,500,000. By September 26 gold reserves totaled 2,117.9 Of this total about $52,000,000 was shipped to millions, a net increase for the five-week period Japan, $33,000,000 to Argentina, $27,000,000 of 43.6 millions. to Spain, $22,000,000 to Hongkong, $19,000,000 Mainly as the result of large Government to China, and the remainder largely to Urutransactions the net deposits of the Federal guay, Venezuela, British India, Canada, and Reserve Banks show considerable fluctuations France. during the period, though the September 26 On September 5 the President nominated figures, $1,634,074,000, were only 13 millions ^ • , Mr. Henry A. Moehlenpah, of T in excess of the August 22 total. Federal Re- New member ™. , ™ , „ serve note circulation increased at the rate of of Board. Clinton, Wis., as member of over 20 millions during the five weeks, and at the the Federal Reserve Board to end of the period aggregated $2,655.4 millions, fill the unexpired term of Mr. F. A. Delano, or only slightly below the record total shown who resigned in July, 1918, in order to accept about the end of 1918. The banks' reserve a commission in the United States Army Enratio fluctuated between 50.4 and 52.5 per gineer Corps engaged in railway construction in France. On September 23 the nomination cent, and on September 26 stood at 51 per cent, was confirmed by the Senate. The appointcompared with 50.7 per cent five weeks earlier. ment will become effective when Mr. Moehlen- During the month ending September 10 the pah takes the oath of office. Mr. Moehlenpah net outward movement of gold m ° v e " was $40,998,000, as compared is 52 years of age, was born in Joliet, 111., and is a graduate of Northwestern University. He with a net outward movement entered upon the career of banking in Joliet, of $49,959,000 for the month ending August 10. 111., in 1888, removing to Clinton, Wis., in 1893, The gain in the country's stock of gold since where he engaged in the banking business.. At August 1, 1914, was $918,589,000, as may be the time of his appointment he was president seen from the following exhibit: of the Citizens Bank of Clinton, Wis., president [In thousands oi" dollars; i. e., 000 omitted.] of the Wisconsin Mortgage & Security Co., of Milwaukee, Wis., and director of the Rock Excess of Imports. Exports. imports County Savings & Mortgage Co. over exports. In view of the very large increase in the . volume of the work of its staff, Aug. 1 to Dec. 31,1914 23,253 104,972 181,719 organiza«oiT '" ^Federal Reserve Board has Jan. 1 to Dec. 31,1915 451,955 31,426 420,529 Jan. 1 to Dec. 31,1916 685,745 155,793 529,952 decided to divide the duties Jan. 1 to Dec. 31,1917 553,713 372,171 181,542 Jan. 1 to Dec. 31,1918 61,950 40,848 21,102 heretofore performed by Mr. J. A. Broderick, Jan. 1 to Sept. 10,1919 55,123 207,940 1152,817 recently resigned as secretary of the Board. Total 1,831,739 913,150 918,589 Mr. Broderick, in addition to his duties as i Excess of exports over imports. secretary, was chief Federal Reserve examiner and chief of the division of audit and examina- Gold imports for the monthly period, amounttion. Accordingly, the Board makes public ing to $2,018,000, were received principally announcement of the following appointments: from England, Canada, and Mexico. Of W. T. Chapman, secretary; R. G. Emerson, the gold exports, amounting to $43,016,000, assistant secretary; W. W. Hoxton, executive Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

October 1, 11)19. FEDERAL RESERVE BULLETIN. 919 secretary; W. W. Paddock, chief of division Mr. Will and Mr. Herson will be in charge of of operations and examination; J. A. Will, the field forces of the Board engaged in the chief Federal Eeserve examiner, western divi- examination of Federal Reserve Banks and sion: J. F. Herson. chief Federal Reserve ex- their branches. Mr. Will's territory embraces aminer, eastern division. the Federal Reserve Banks of St. Louis, Minne- Mr. Chapman, who succeeds Mr. Broderick as apolis, Kansas City, Dallas, and San Francisco secretary, became connected with the Board's and their branches, while that of Mr. Herson staff upon its organization in 1914 as secretary embraces the Federal Reserve Banks of Bosto Hon. Paul M. Warburg. Upon retirement ton, Philadelphia, Cleveland, Richmond, and of Mr. Warburg in August, 1918, Mr. Chapman Atlanta and their branches. The two forces was assigned to the office of the secretary of are combined in the examination of the larger the Board as general assistant, and was ap- Federal Reserve Banks at New York and Chipointed assistant secretan?- on September 1, cago. After an extended banking and account- 1918. ing experience, Mr. Will became auditor of the Mr. Emerson, who succeeds Mr. Chapman as Federal Reserve Bank of St. Louis. He reassistant secretary, comes from Haverhill, signed this position and was appointed a Fed- Mass., is a graduate of "New York University, eral Reserve examiner on August 15, 1918. and was formerly financial statistician with a Mr. Herson was associated for a number of leading investment service company in New years with one of the largest trust companies York. He entered the Board's service as an in New York, leaving which he was for two accountant in the statistical division in De- years with a private banking house in Moncember, 1917, and subsequently was appointed treal, Canada, and London, England. He then general assistant in the secretary's office, with became connected with the New York State the designation of acting assistant secretary. Banking Department and was appointed a Mr. Hoxton will be connected with the ad- Federal Reserve examiner in August, 1917. ministrative work of the Board, performing Mr. It. A. Young on October 1 succeeded such duties in connection with technical bank- Mr. Theodore Wold as governor of the Federal ing matters as may be assigned to him by the Reserve Bank of Minneapolis, Mr. Wold having Board. Mr. Hoxton was formerly with the St. retired to accept the position of vice president Louis Clearing House Association, for eight of the Northwestern National Bank of Minneyears as assistant manager and ten years as apolis. Mr. Young was formerly deputy govmanager, which latter position he resigned to ernor of the Federal Reserve Bank. become deputy governor of the Federal lie- The appointment of the following directors serve Bank of St. Louis. After four years' - of the Nashville branch of the Directors oi _ , -,., , « , , service as such he resigned to head the accep- Nashville branch . T * ederal T R > eserve Bank of Atlanta tance department of an investment banking was announced on September house in Cleveland, Ohio, whence he comes to 24: Mr. W. II. Hartford, Mr. P. M. Davis, Mr. join the Board's staff. J. E. Caldwcll, Mr. E. A, Lindsey, and Mr. T. Mr. Paddock, who succeeds Mr. Broderick as A. Embiy. head of the examination division, is a former The first two gentlemen have been appointed national bank examiner, assigned first to the by the Federal Reserve Board, while the last southern New Jersey district, and then with three are the appointees of the Federal Reserve the chief national bank examiner at Philadel- Bank of Atlanta. Mr. W. 11. Hartford of Nashphia. In August, 1918, he was appointed exville, who is a class B director of the Federal aminer by the Federal Reserve Bank of Phila- Reserve Bank of Atlanta, has been designated delphia. He resigned from the Philadelphia chairman of the branch board of directors. bank in the fall of 1918 to accept appointment Mr. P. M. "Davis is vice president of the Amerias a Federal Reserve examiner. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

920 FEDERAL, RESERVE BULLETIN. October 1, 1019. can National Bank at Nashville, Tenn. Mr. A regular statutory meeting with the Fed- J, E. Caldwell is president of the Fourth and eral Advisory Council was held First National Bank of Nashville, and also Meeting of Ad- • TTT -u- / -» i i r visory Council. ln Washington on Monday and president of the First Savings Bank and Trust Tuesday, September 15 and 16. Co. of Nashville. Mr. E. A. Lindsey is presi- Among the questions affecting the bankingdent of the Tennessee Hermitage National situation generally and the status of the Fed- Bank, Nashville; and Mr. T. A. Embry is presieral Reserve Banks, particular attention was dent of the Farmers National Bank, Winchesgiven to the subjects of check collection and ter , Tenn. discount rates. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

October 1,1919. FEDEEAL EESERVE BULLETIN. 921 BUSINESS AND FINANCIAL CONDITIONS DURING SEPTEMBER. During the month of September labor unrest situation, but a feeling of confidence generally has become the most prominent factor in the prevails that a satisfactory solution of the business situation. Prevailing unrest found present troubles will be found. expression in various forms, including demands Reports received from the several Federal for improved working conditions and increased Keserve agents as of September 20 indicated wages, also in local strikes, and found its culmi- little change in the Dusmess situation from nation in the strike in the steel industry. In the conditions prevailing during the previous spite of the resulting uncertainty injected into months. Although the labor situation was the business situation, the customary autumnal generally remarked as the principal factor swell in the volume of business is noted. The in rendering conditions somewhat unsettled, high retail prices prevailing do not appear as the feeling was expressed in a number of disyet to have a noticeable effect in checking con- tricts that there was "a growing realization on sumption, and the demand for higher grade the part of the workmen that their interests products continues. While the official whole- are bound up with the interests of the comsale price index number shows a further rise munity as a whole and that increased effifrom 219 in July to 222 in August, some read- ciency resulting in greater productivity" is justments in wholesale prices have taken place imperative. In district No. 1 it was stated during the present month, involving price re- that "business on the whole continues very ductions in several leading foodstuffs and in active, although manufacturers are cautious in various cotton textiles, hides, and other lines in buying raw material ahead of immediate dewhich advances had hitherto been most mands, while retail purchasing activity conmarked. A spirit of conservatism, however, tinues apparently unabated." In district No. manifests itself in various trades and greater 2 financial conditions are good, the readjustattention is paid to the probable future trend ment of prices is progressing, declines in "cerof prices. tain products at the core of the cost of living" In agriculture the exceptional promise of the being noted, and the outlook is generally favorspring has not been fulfilled. In particular the able. In district No. 3 "general business conwinter wheat crop has been considerably below tinues to show a high degree of activity and all expectations. This, however, is partly made the outward marks of prosperity." In district up by the larger yield and harvest of corn. No. 4 general business, both wholesale and The official forecast for cotton is less favorable retail, continues active. Reports from all secthan last month, indicating an unusually late tions of district No. 5 contain "optimistic notes crop. The credit demand for crop-moving of general business conditions, the few unfavorpurposes has been less heavy than was antici- able comments heard being confined to high pated in many quarters and was easily met by living costs, extravagant expenditures for luxthe local banks with the assistance of the Fed- uries and nonessentials, and the shortage of eral Reserve Banks, the latter reporting sub- farm labor." In district No. 6 it is stated that stantial increases during the month of dis- "activity in all lines of business has continued counts secured by commercial paper and cor- to exceed in volume activity for the same responding increases in their note circulation. period of any previous year." In district No. Conditions in the New York money market 7 there continues, alike among all classes, a have become easier, but no great increase in rather marked disposition to "capitalize" presthe volume of speculation is noted. For the ent price conditions, in particular to attempt present the labor difficulty overshadows in to make|the price situation the basis of addi* importance all other factors in the business 139895—10-—2 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

922 FEDERAL RESERVE BULLETIN. October 1,1919. tional profit, although " business is generally of employment and by strikes, actual or reported as very good." From district No. 8 threatened, in various industries, as well as it is reported that "a tendency to await devel- by the agitation against high prices, has now opments before making larger commitments found expression on a widespread scale in the for the future has been in evidence and the present strike in the steel industry, and has expansive impetus of the early summer months forced itself sharply upon public attention. has been checked in a measure by a growing It had been generally hoped in the industry conservatism." While the effect has been to that intervention by the President would result retard somewhat the growth of commerce and in a postponement of the call for the strike industry in the district, business continues pending the conference of labor and capital active. In district No. 9 a fair crop of small called by the President to meet in Washington grains is compensated by the very satisfactory on October 6, at which the question could be situation with respect to corn and hay, and thoroughly discussed. general business is very good. Conditions in New wage demands and strikes are frequentdistrict No. 10 have become somewhat more in certain districts, prominent among those settled, "the volume of trade is at its highest noted during the present month having also peak of the year," and the farmer "has found been the "strike;7 of the Boston police and the 1919 a far better year than the average," both formulation of new wage demands by the as to size bf crops and prices received. In bituminous coal miners. Although the raildistrict No. 11 it is stated that "renewed ac- road shopmen have returned to work, the tivity is noted in many lines as the fall season transportation situation continues to occupy opens," and crops other than cotton are in good a prominent position in public discussion, both condition, although "an atmosphere of con- in consequence of the consideration of plans servatism is rather noticeable in business on for the future operation of the railways and account of the uncertainties of the future." because of the car shortage which is hampering District No. 12 states that "business condi- business activity in various lines. tions have been characterized by activity in Commodity prices reached new high levels manufacturing, and increasing activity in during the month of August, though since the nearly every line of wholesale and retail trade." middle of the month a downward movement 1 The labor problem has become the paraappears to have set in affecting the prices of mount issue during the present month, the some leading staples. The general index numquestion of the cost of living receding from ber of the Bureau of Labor Statistics for that its former position of prime importance. month stands at 222, as compared with 219 for Reports indicate a desire of the workers to the month of July. The increase in prices, secure a larger share in the returns of industry, while again general, was greater for the groups demands for increased wages being accom- of consumers7 and producers' goods than for panied by demands for shorter hours. At the the group of raw materials, the index number same time, however, public opinion appears to for consumers7 goods increasing from 230 to be awakening to the reaction which increased 241, for producers7 goods from 205 to 215, and wages and decreased output may have upon for raw materials from 214 to 217, the correcommodity prices, and the vicious circle which sponding percentages of increase being 4.8, 4.7, may result. Production has been hindered in and 1.5. Among the subgroups included in various lines in which the demand is greatest, the group of raw materials, the index number both by a shortening of hours, by decreased for forest products shows a considerable inefficiency, and by disinclination in certain crease, from 166 to 193, the numbers for anicases to work more than part time. The labor mal products and for mineral products lesser unrest, exhibited frequently heretofore by new increases, from 233 to 236 and from 177 to demands as to wages, hours, and conditions 178, respectively, while the index number for Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

October 1,1919. FEDERAL RESERVE BULLETIN". 923 the subgroup of farm products alone shows a the crop is reflected in the small amount ginned decrease, from 261 to 251. The prices of a to date. Additional injury has been done in considerable number of commodities on Sep- Georgia and Alabama by constant rains and tember 1 were lower than on August 1. Since by the boll weevil and heavy damage by inthe opening of the present month, price de- sects is reported in Texas, although improveclines in certain foodstuffs, as well as in raw ment is noted in the Carolinas. Prices have cotton and various cotton textiles and in hides, been irregular, with a downward tendency. have continued. The more conservative feel- It is reported from Kansas City and Minneing noted last month still prevails and moder- apolis that flour mills are operating at almost ation in naming prices is urged in certain lines, full capacity. There is good demand for flour, rather than the policy of exacting all that "the although trade reports indicate that eastern traffic will bear." Retailers' sales during the buying has lagged somewhat, and the demand present fall season have been closely watched for first clears has been especially light. Flour in some lines in view of the possibility of a production during August, as reportedly the curtailment of consumption in consequence of United States Grain Corporation, was 12,042,the higji prices demanded. 000 barrels, as compared with 8,339,000 barrels In agriculture, the relatively unsatisfactory during July. Prices of grain and flour have situation prevailing with respect to wheat as shown a downward tendency. compared with earlier prospects is compen- With the increase in receipts of raw sugar, sated by the favorable situation with respect meltings have again increased, although the to corn, the bulk of which will soon be past scarcity previously remarked continues and the danger of damage, and to hay, the yield of situation in this industry is reported to have which is much above the average. Corn is of reflected the uncertainty as to the conditions good quality, but in the case of spring wheat under which the new crop would be marketed. the grain is light. In consequence of deficiency Receipts of cattle at 15 primary markets inof rainfall in district No. 9, all small grains are creased slightly, from 1,527,881 head during showing a poor return, with many sections in July to 1,541,133 head during August, as com- North Dakota, South Dakota, and Montana pared with 1,588,553 head during August, 1918, reporting "a complete failure." Although the respective index numbers being 152, 153, good returns have been received by farmers in and 158. Receipts of hogs show a continued district No. 10, it is stated that indications falling off, from 2,411,539 head during July to point to a decrease in the wheat acreage sown 1,595,759 head during August, as compared this fall, due partly to unfavorable soil con- with 1,970,086 head during August, 1918, the ditions for fall plowing and seeding and partly respective index numbers being 110, 73, and to "a desire to return to the pre-war plan of 90. Receipts of sheep again show a considdiversified farming." District No. 11 "made erable increase, being 2,220,229 head during the heaviest and best corn crop ever raised," August, corresponding to an index number of and " the small grain crop was also large beyond 162, as compared with 1,538,767 head during precedent." The harvesting of grain, except July, corresponding to an index number of 114, corn and rice, is now practically completed in and 1,424,677 head during August, 1918, cordistrict No. 12. responding to an index number of 104. Prices Deficiency of rainfall has damaged tobacco of live stock, in particular hogs, showed a in Kentucky and Ohio, and "the outlook is downward tendency. Hogs at Kansas City on rather discouraging," while in the Carolinas the September 13 reached a low figure of $16.23 crop ranges " from extra good in the interior to per hundredweight, as compared with $19.50 very poor in extreme eastern counties." The at the close of August. condition of cotton showed a further decline The outstanding feature in the iron and steel to 54.4 on September 25, and the lateness of industry has, of course, been the labor situa- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

924 FEDERAL RESERVE BULLETIN. October 1, 1919. tion. Up to the actual day of the strike a principals an increase in the tonnage allotted feeling prevailed that it would be avoided, and to foreign business from the present figure of the industry as a whole, as well as consumers, 10 per cent of output, The machine-tool viewed the situation calmly. While there was industry continues active. a decrease in new buying during the first half The strike called for September 22 had varyof the month as conditions became unsettled, ing effects in the several districts. Reports the further increase in production which had indicate that the strike was most widespread been noted for the month of August continued. in the Colorado, Cleveland, and Chicago dis- Pig-iron output increased from 2,428,541 tons tricts, a practical failure in the Birmingham during July to 2,743,388 tons during August, district, while considerable interruption to prothe respective index numbers being 105 and duction was noted in the Pittsburg district. 118. Steel-ingot production increased from The fact that for many of the independent 2,508,176 tons during July, corresponding to producers agreements negotiated annually were an index number of 104, to 2,746,081 tons dur- in effect, aided materially in maintaining the ing August, corresponding to an index number output of lines for which the demand had been of 114, while the unfilled orders of the United greatest, such as sheets and tin plate. The States Steel Corporation at the close of August production of tubular goods was considerably were 6,109,103 tons, as compared with 5,578,- curtailed, while the manufacture of wire 661 tons at the close of July, the respective products was stated to have been well mainindex numbers being 116 and 106, although it tained at all points except Cleveland. The is reported that new orders booked are running greatest effect of the strike is reported to be below those of a month ago. on the heavier products, such as bars, struc- It is reported that the demand for pig iron tural shapes, plates, and rails, for which demand during the month has not been active, with the has hitherto been lightest. The claim is made chief interest in foundry iron, but stocks are that the strikers are largely foreign workers? stated to have decreased during August for the performing the lower classes of work, and that third month in succession, and merchant fur- in certain cases the strike on their part has naces are well sold over the remainder of the forced out other employees who desired to year. A lessened demand, but with little out- continue work. The employers have been put available for delivery before the first of the optimistic and, where a sufficient number of year, is reported in the lines which have hitherto the regular working force has not reported, been most active, such as steel bars, sheets, wire, have suspended operations. Efforts have been tin plate, and lap-weld pipe. Regular consum- made by the workers to enlist the aid of unions ers in many cases are stated to be well covered covering related trades, such as ore carrying on in their requirements for the remainder of the the Great Lakes. Reports indicate that a year, while there has been relatively little in- strike called for Monday, September 29, quiry as yet for the next year's delivery, and against the leading independents had relatively manufacturers were not disposed to quote slight success, likewise efforts at the same time thereon. Certain of the heavier lines, such as to force a shutdown of the leading independent rails and shapes and plates, continue to lag, producer at Pittsburgh. At the close of the the latter showing weakness in price. Price month, the situation is reported to have been declines have been noted in the old-material relatively little changed, as far as production markets since the middle of August. Although was concerned, from conditions prevailing the volume of domestic business booked has during the early days of the strike. diminished somewhat the interest in the export Production of bituminous coal during August field, it is reported that the export agency of amounted to 42,883,000 tons, as compared with the independent producers shortly after the 42,946,000 tons during July, the index numbers middle of the month requested from their for both months being 116. A strong demand Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

October 1.1919. FEDERAL RESERVE BULLETIN. 925 for anthracite coal is reported, resulting in in- demand for cotton goods on the whole has been creased shipments during August of 6,144,144 quiet, and price declines in gray goods are retons, corresponding to an index number of 109, ported. This condition is reflected in the as compared with 6,052,334 tons during July, prices obtained at the second Government auccorresponding to an index number of 108. tion held at New York on September 4, at Production is being impeded in certain sections which most of the fabrics did not bring more by car shortage and by labor difficulties. No- than 90 per cent of the current prices, although tice has been given by the bituminous miners market prices were well below those prevailing of the abrogation of the existing wage scale in at the close of July, the time of the first auction, the central competitive field on November 1, when market prices then prevailing were exand a conference of operators and miners has ceeded in some instances. The allotment of been proposed by the latter to meet at Buffalo finished goods for spring delivery continues, at on September 25 to consider their demands. prices which are regarded as moderate by the The output of beehive coke showed a continued trade in view of existing conditions, and the increase up to the month of September, goods are readily taken. 1,808,595 tons being produced during August, The raw-wool market continues quiet, with as compared with 1,512,178 tons during July, prices firm, greatest strength being shown by Due to the situation in the steel industry, de- the finer grades. Worsted yarns are quiet but creased production has since been reported* strong, spinners being sold up to the end of the Furnace coke has declined in price, but foun- year and displaying as yet but little disposition dry coke has been in good demand and price to discuss offerings for next season. The marincreases have been noted. ket for men's wear woolens is again quiet, such Continued quiet is reported in the nonferrous spring offerings as mills have made being largely metal industries, with little buying by con- sold up. The women's clothing industry has sumers. In view of the steel strike, a waiting been protesting against the high prices of fabattitude at present prevails. Transactions have rics, and anxiety is expressed lest the next consisted in large part of resales by speculators spring season see a restriction of purchasing by at prices below those asked by producers. The the consumer. During the month price reducgreatest strength has been shown by lead the tions by jobbers have been reported in some ; price of which increased about the middle of lines of dress goods. Underwear shows quietthe month. Continued weakness in zinc is ness characteristic of the between-season period, reported, demand from the steel industry for mills having a relatively large amount of orders both that metal and tin being curtailed, in view booked, though few openings for the spring seaof the present situation. It is reported from son have as yet occurred. A spirit of greater the Kansas City district that the reduced ship- caution on the part of buyers was also noticements are due largely to "the difficulty of able about the middle of the month. The deobtaining cars for shipping out the ore pur- mand for silk and high-grade cotton hosiery chased/7 but that production grew noticeably continues. While silk manufacturers state during the month of August. that they are sold ahead for some time to The activity in general manufacturing con- come, trade reports indicate a noticeable slacktinues, although markets in certain cases pre- ening in demand, and staple fall silks are stated sent a quiet appearance due to the fact that to have been offered by jobbers at concessions some manufacturers are well sold ahead, while in price. The industry has been handicapped in certain quarters a more cautious purchasing by labor difficulties, in particular by the Paterpolicy is noted. The cotton-yarn market dur- son dyers' strike and the recent Pennsylvania ing the month has been relatively quiet and strike. prices of medium and coarse count carded During the past month the feature of the hide yarns have shown a tendency to decline. The and leather markets has been the decrease in Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

926 FEDERAL RESERVE BULLETIN. October 1,1919. the prices of hides which commenced in coun- general have continued to exceed production, try hides toward the close of August, although which has been hampered in certain sections about the middle of the present month prices by car and labor shortage and weather confor both country and packer hides have again ditions, and stocks have been further depleted. become firmer. In leather the influence on Recently, however, a decrease in demand has prices has been chiefly felt by the less desirable been noted. grades, though concessions on both upper and Official figures for the month of August show sole leather are reported. The leather market a recovery to $338,900,000 in the export balance has been quiet for some time, but tanners are from the "low figure of $226,000,000 for the well sold up. Manufacturers of shoes continue month of July, though this amount is still far to operate at capacity, and favorable reports below the June figure of $624,000,000. As are received from salesmen now on the road. compared with July figures some gains are Demand for the better grades of footwear con- shown in the exports of breadstuffs, largely tinues. wheat, and of mineral oils, while the August The customary seasonal swell in the volume exports of meat and dairy products, also of of business is noted in many sections. Both raw cotton, show a further decline both in wholesalers and retailers report a large volume quantities and values. While June exports to of business, and the fears which had been ex- Europe were approximately equal to the entire pressed that high prices might serve to check August exports, a growth of South American demand continue to represent a future possi- business is noted. Iron and steel exports, after bility rather than a present actuality. From a sharp decrease in July, recovered somewhat practically all districts it is reported that ex- during August, liberal purchasing by the Orient travagant purchasing, both in respect to the and South America being recorded. The forcharacter and quality of goods, continues un- eign trade conference to be held at Atlantic City, abated. There is a continued heavy demand which has been postponed from September 30 for automobiles, jewelry, and high-grade wear- until October 20 in order to permit the attending apparel. Retailers7 stocks are being de- ance of the foreign delegates, will be watched pleted, and in many cases difficulty continues with interest. to be experienced in obtaining merchandise, A short period of fair activity in the stock although in Philadelphia and St. Louis improve- market at the opening of the month was sucment in deliveries is noted. Merchants are, ceeded by a period of relative quiet, and public however, operating cautiously in view of participation has again become a small factor in present conditions. the general situation. No sharp decreases in the Further increase in building activity is prices of stocks such as characterized the previreported. Permits issued during August ex- ous month have been noted, while strength has ceeded the figures for July, the previous record been displayed since the opening of the steel month of the present year. The increase has strike. In the bond market the bulk of transbeen especially great for New York City, where actions was in United States securities, and it is stated that "for the first time in several prices show a rise, while one-year United States years the amount of building now under way certificates of the September 15 issue are selling is fully up to normal." In several other dis- above par, recent sales being on a 4£-per cent tricts, however, it is stated to be still below basis. Railroad bonds have been dull, but relanormal, and a further increase is anticipated. tively unchanged in price, and industrial bonds Great activity in the industry prevails in spite have declined. The absorption of new securiof high wages and the shortage of both lumber ties has continued to be much larger than usual and labor, and higher costs thus far apparently for this season of the year. Fluctuations in the have had little influence in checking construc- call-money rate have again been confined within tion. Orders and shipments of lumber in narrower limits than during previous months. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

October 1, 1919. FEDERAL RESERVE BULLETIN. 927 the extreme rates being 4 per cent and 8 per cent requirements measured by August receipts in until the close of the month, when, high levels five of the leading cotton-manufacturing centers—New Bedford, Fall River, Manchester, were again reached. Decline in rates in the New Lawrence, and Lowell—is 72,587 bales, as York money market is noted, following heavy against 73,824 in August, 1918, and 58,184 in redemption of United States certificates of August, 1917. The demand for cotton goods indebtedness, and accompanying a smaller de- is strong, though there is apparent some recesmand than anticipated for crop-moving funds. sion from the activity of a few weeks ago, and the volume of business both in staples and Interest rates in general, however, remain firm, fancies is greater than many mills can handle, a strong demand for funds being noted in cerand, being booked through to the end of the tain districts both for crop-moving purposes year with orders, are declining any further new and to meet the seasonal requirements of manu- business at present, a situation partly due to the facturers, although an easier situation is noted inability of the mills to utilize their full productive capacity because of a shortage of in some of the agricultural districts. The weavers and consequent idle looms in many in- Board's figures of the volume of check transstances. actions continue at a high level. Foreign General retail trade.—The demand of the exchange rates have shown a downward tend- pii'blic for nearly all kinds of merchandise, ency since the opening of the month, sterling, particularly high-priced goods, shows no sign francs, and lire among the more important of abatement, jobbers reporting that business was never better so far as orders are concerned, exchanges again reaching new IOY/ levels, being the retailer being still short of his normal prequoted on September 6 at 4.135, 9.21, and war supply of goods, but complaining that he 10.14, respectively. Recovery has since been can not get quantity production from the mills noted. The banking situation continues to be to meet the demand of customers. This is true of nearly everything the people need, or which regarded as sound, credit and collection condithey want to buy regardless of necessity, from tions are good, and failures continue unpreceautomobiles to the minor articles of personal dentedly small and few. adornment. Retail dealers are under these circumstances able to meet bills promptly. SPECIAL REPORTS. REPORTED BY DISTRICT NO. 2. (Prepared as of September 20.) REPORTED BY DISTRICT NO. 1. Money and hanking.—The extraordinary event in the money market during the last Wool and woolen goods.—The wool situationmonth was the redemption on September 15 of has not materially changed during the past United States certificates of indebtedness. On month, and such activity as is in evidence that day the Federal Reserve Bank of New does not appear sufficiently pronounced to York paid $348,000,000 of certificates aside indicate a general conviction as to probable from those received in payment of taxes. On developments of the next six months. While succeeding days this amount increased to about it is not anticipated that prices are likely to go $360,000,000. The effects of the release of this much higher, there is a feeling, on the other large sum of money were widespread. Call hand, that they will not go lower, or if and when money on the New York market declined imthey do, that the recession will be quite gradual mediately to 4 per cent; within three days the in the face of the continued demand by the borrowings of member banks at the Federal public for fine goods and the fact that manufac- Reserve Bank fell off about $225,000,000, inditurers in general have no surplus of the finer cating a heavy, though perhaps transient, liqgrades of the raw material on hand. The wool uidation; time money became easier and comsituation, accordingly, and naturally, remains mercial-paper rates declined to 5J and 5 per firm, with some houses not anticipating any cent for best names, and the dealers reported widespread activity for some time to come. increasing demand. Moreover, as the Treasury Cotton and cotton goods.—The cotton mar- Department foresaw, the decline in rates created ket continues for the most part quiet, with a particularly favorable market for the new prices irregular and few quotations as yet on issues of certificates of indebtedness, subscripnew crop staples. The supply for current tions for which opened on September 15. In Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

928 FEDERAL RESERVE BULLETIN". October 1,1919. three days subscriptions received at the Fed- Aside from purely technical deficits in laweral Reserve Bank amounted to $435,000,000, ful reserves shown in the clearing-house statemost of which were for the one-year certificates ments of August 23 and September 20, the bearing 4J per cent. experience of New York banks did not deviate A second and highly important factor in from the ordinary. On August 23 the preeffecting a decline in the money market was a cipitating cause for the deficiency, which smaller demand than usual for crop-moving amounted to $813,000, was the withdrawal of funds. Prior to the establishment of the Fed- Government deposits in the amount of $50,eral Reserve System the West drew heavily on 000,000. The deficiency was converted into New York for funds with which to move the an excess of reserves, as shown in the statecrops, but in the last five years there has been ment of the following week, chieffy through a perceptible decrease. This decline appears rediscounting at the Federal Reserve Bank. to be particularly heavy this year not only on Concurrently the loans and discounts item inaccount of the operations of the system, but creased $105,000,000. In the week ended because the wheat crop promises to be some September 20 the banks reduced their bor- 300,000,000 bushels less than early reports in- rowings at the Federal Reserve Bank to such a dicated, a fact which releases a corresponding degree that the clearing-house statement amount of credit. Moreover, the West has en- showed a deficit in lawful reserves of about joyed a period of great prosperity. Coupled with $53,000,000. With the payment of the Septhe high prices realized on cereals, live stock, tember 15 maturities of certificates the deand lumber is the activity of new manufacturing posits increased. enterprises, and the result is an increasing self- Stock market.—It appears that the stock dependence of the West in financing its crops. market on or about August 21 entered upon a The comparative ease of the money markets new phase of development. The New York in the last 30 days is shown in a comparison Stock Exchange houses and their customers, of the rates with those of the preceding month. especially the latter, did not become deeply In the earlier period call-money rates rose as impressed with the necessity of adapting their high as 20 per cent, whereas.in the August- dealings to the new conditions in the money September period they have ranged between market which developed in June and July until 3| and 8 per cent. The low rate was touched about the middle of the latter month. Thereonly one day and the high rate twice. On after the general process of reducing the aggre- August 20 the rate rose to 8 per cent in antici- gate amount of call loans, and inducing the pation of the repayment to the Federal Re- margin buyers of stocks either to take up the ; serve Bank of Government deposits. The shares bought, or else increase the margins renewed stock exchange activity in September behind them, required a little more than a was attended by a second rise to 8 per cent month. The liquidation incidental to this reon September '8. This high rate attracted adjustment brought down theiWall Street funds from the interior, where accumulations Journal's average price of 20 industrials from of money had been established in anticipation 112.23 July 14 to 98.46 August 20. Money of crop movements and then found to be in conditions had been quite readjusted by about excess of requirements. the 1st of August; but the adaptation of the The time-money market up to the last few stock market to new conditions proved as days of the period has been quiet and feature- usual to be a rather slow process. So it was less. Dealings were light and confined chiefly that the past month which we are now conto the shorter maturities. Rates remained sidering proved to be the first one in very virtually unchanged at 5f to 6 per cent, with recent times wherein the stock market ceased practically no loans at the lower rate. During to respond to the general expectations of exthe last week there was greater freedom in the panding business and growing prosperity, and offerings of funds for four and six months' began to recognize the money conditions inciperiods by interior banks, a fact taken as a dental to the crop movement and autumn further indication that requirements for crop business. moving were not as large as had been expected. During the last week in August, while in- Throughout the period there was an active de- vestment opinion as to the new situation was mand for acceptances from both out-of-town forming itself, the volume of dealings was relaand New York buyers. By September 15 tively small, being only about 700,000 shares dealers reported that their portfolios were per day. But the first week of September was nearly exhausted. Rates remained unchanged. characterized by substantial buying in a group Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

October 1,1919. FEDERAL RESERVE BULLETIN. 929 of industrial shares, which were thought to be liquid capital seeking investment in stocks and cheap; arid this activity, in which the public bonds diminishes. Preliminary reports show, as well as the professional traders participated, however, that for the month ended September brought the dealings up to more than 1,400,000 15 there have been issued in this market shares daily. By the beginning of the second $48,216,100 of preferred stocks paying 7 per week in September the public buying seemed cent and yielding 6 to 8 per cent on the offerto have largely spent itself, at least for the ing price; $10,678,000 of municipal bonds, not time being; and the dealings became more including short-term loans, the income basis of professional as well as smaller. They centered, which varied from 4.3 to 4.9 per cent; $24,500,too, in stocks less highly approved by con- 000 industrial bonds, paying 6 per cent and servative judges of values. Money and labor offered on a 6 to 6f basis; and $40,920,000 of conditions, as well as the crop conditions dis- common stocks. This is a total of $83,394,100 closed by the September report for the Gov- of new investment issues, not counting the ernment, have been fully considered by the common stocks. Railroad securities play an buyers and sellers of stocks; and thus at this insignificant part in this total and public utility writing the market seems to have worked itself issues not a large part. Besides these there is into the neutral or balanced position of having the usual assortment of petroleum and real discounted the factors which have thus far estate securities. In general character the come into sight. The second week of the securities offered show no change from recent month was distinctly one of equilibrium rather months. than of development along any definite line. Bond market and new financing.—The bond REPORTED BY DISTRICT NO. 3. market of the past month has been a continu- Clothing.—Business has been going at a fast ation of that of the previous month or six rate during the last month. More goods can weeks, except that it acts as though the adjust- be sold and have been sold than can be delivment ,to new investment conditions were now ered within the next few months. Labor conmore nearly complete. At least, this adjust- ditions are very unsatisfactory, largely due to ment is going forward more slowly. In railroad the impossibility of securing enough workmen bonds the pronounced weakness of July and to keep production up to normal. Shorter August has been succeeded by mere heaviness hours are playing an important part in curand dullness. Reports of railroad net earnings tailing production. While the demand for have not improved of late, but the bonds in goods continues to be pressing, manufacturers declining 5 to 6 points since the end of last profess their inability to tell how long this conyear arp perhaps considered by investors to dition will last. have discounted the unsatisfactory railroad Leather.—Leather had been in such consituation. tinuous demand for the last few years that Public utility bonds are generally selling no prices had reached a speculative level because lower than they were a month ago. There was of comparatively scant supply. Trading conweakness in the local traction issues during ditions in the leather market have lately rethe second week of September, but lighting ceived a decided setback owing to the actions and power company bonds have been generally of the Government aimed at the reduction of firm. Industrial bonds within the past month the high cost of living. Very little new busihave been the heaviest group, but their reac- ness in sole leather has been consummated tion amounts to nothing more than the loss of during the last few weeks and hide prices have a portion of the substantial rise which they declined 8 to 10 cents per pound. This decline enjoyed during the year ended June, 1919. The is said to be due to the unfavorable criticism, of dealings on the stock exchange have centered the large packers, who are the principal promostly in United States bonds, while trans- ducers of domestic hides. South American actions in State and municipal issues have been hides declined in sympathy, but there has been light, and those in railway and industrial bonds a small rally from the low prices registered have been very light. during the height of the agitation. Tanners The absorption of new securities by the in- claim that the high cost of hides, labor, and vesting public is much larger than usual for tanning material warrant a price 10 cents per this season of the year. The general rule is pound higher than at present. Leather tanthat as the volume of capital required to finance ners hope that business will be good for the the crop movement increases, the amount of balance of the year, but feel that the outlook Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

930 FEDERAL RESERVE BULLETIN. October 1, 1019. is uncertain. Foreign trading has been largely REPORTED BY DISTRICT NO. 4. stopped. Domestic demand for footwear, however, seems to be in excess of the available sup- Buyers and sellers of iron and steel apparentply, if the firm price levels can be taken as an ly have continued to take a calm and conservaindication. Patent leather is becoming more tive view of the labor troubles in the industry, popular in the better grades of shoes. Foot- and the latter factor has produced little effect wear manufacturers feel that the outlook for on the growth of the market. While during the next two or three months is particularly August there was some interruption of progood. No trouble with collections is reported duction by sporadic labor disturbances and in from either source. Labor problems are re- the Chicago district especially, by the lack of ceiving much attention, as there seems to be no cars and motive power growing out of the shoplimit to the compensation desired. One large men's strike, the total output of the mills and tanner reports tnat wages have increased 300 furnaces advanced to new high ground. The per cent over 1914. Slackening of productive tendency all along the line has been toward effort and inefficiency have accompanied these increased output to satisfy the growing volume increases, according to many manufacturers. of orders. The obligations of the producers, Leather belting sales during August were the however, have been increasing faster than the largest for a long time past. Activity in this mills have been able to enlarge their production. line is usually held to be an index of general The result has been a further lengthening of manufacturing conditions, and this satisfactory the period of deliveries and a greater unwillingreport is therefore particularly noteworthy. ness on the part of the makers to accept addixSilk.—There has been no let-up in the de- tional orders for delivery in the near future. mand for silk goods during the past month. Labor and car shortages have been a factor Prices have risen considerably on account of tending to restrain, the plants from reaching increased cost of raw material, increased cost the maximum output. At the present time of preparation for such operations as throwing, producers of wire products, tubular goods, dyeing, etc., and the rise in wages of workmen, sheets, tin plate, and steel bars are sold up for The suppty of merchandise is evidently not several months ahead. Some very attractive large enough to fill the present demand and orders in these lines are being declined because customers do not seem to manifest any par- of the heavy obligations of the mills. ticular objection to paying these higher prices. The export trade in iron and steel, which The more conservative manufacturers feel that slumped sharply in July, recovered some ground it would be desirable if consumers would oppose in August. The indications are that this the continuous increase in prices which has been growth is continuing. European purchases are rendered necessary by higher production costs. comparatively light, but the Orient and South Reports indicate that the conservative element America have been buying in liberal volume. of the silk workers are satisfied in those dis- The steel situation still shows the lack of tricts where wages have been properly raised, railroad buying which has continued to impart but the shutting down of some mills has been an irregularity to the market in that the heavier forced by the violent tactics of the radical and lines are still lagging. There are signs, howrougher element. ever, of renewed negotiations in shipbuilding Wool.—The wool market has ruled quiet for work, which should tend to help the backward the last few weeks. The demand for finished plate market. More new vessel construction has goods and yarns shows no diminution, but been placed than in some time and some of this manufacturers had already accumulated large is for foreign account. In prices, producers of stocks of raw material during the late spring steel continue to follow a very conservative and summer. Manufacturers have all the busi- policy and are opposing advances at this time, ness that they can handle but are cautious in notwithstanding the oversold condition of the making commitments too far in the future, due plants in various lines and the extended to the general disturbance in labor conditions. deliveries. The finer grade wools are at present in most In merchant pig iron, buyers are now well demand and there is but little call for the covered on their requirements to the end of the poorer qualities. Eventually there is some year and the furnaces all hare well filled order expectation that demand wili shift over to the books. Many users are endeavoring to cover lower qualities due to the limited supplies of their requirements after January 1, but profine materials. ducers as a rule are discouraging this buying Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

October 1,1919. FEDERAL RESERVE BULLETIN. 931 at this time because of its more or less specu- lina is practically completed and the farmers lative character and the uncertainty over have obtained profitable average prices. In future costs. At the same time a very appre- North Carolina the market opened September ciable tonnage has been sold for next year by 2, fancy brights, wrappers, and the better producers in some districts. In Chicago the grade fillers selling at extremely high prices) sales are estimated to have reached 200,000 averaging 25 per cent higher than last season's tons. In some cases higher prices are being opening, and the lower grades selling at about obtained on iron for next year and also for this the average of last year. year, but there has been no general advance Continued wet weather generally over the and the furnaces are inclined to let matters district prevented cultivation of the com crop stand and await developments. at the proper time, and later the drought All grades of coal are hard to obtain. A injured the maturing of late corn. The result great indifference exists among the miners. is reflected in the forecast by the United States Many of them are satisfied to work but half Department of Agriculture (based on condition time, which decreases production very mate- of crop September 1) that production for 1919 rially. All mines are running far behind in their indicates a decrease in the fifth district as comshipments. As in the steel industry, thegreatest pared with 1918, although the 1919 acreage disturbance in the coal fields is among the shows an increase. The forecast of production foreign born. In the Big Sandy and Kentucky in oats shows a similar result, while the 1919 River coal sections of Kentucky very little acreage in hay is estimated to produce an inlabor trouble is found, as most of the miners are creased tonnage as compared with like acreage native-born Americans. Reports from the in 1918. coke regions indicate that production is being Cotton, as a result of more favorable weather held very close to contract obligations. In the conditions since our last report, shows improvepast 30 days there has been less pressure for ment both in the cultivation of the crop and sfjot coke; the price has remained firm even the fruiting of the plant. The crop in the with small increase in production, small lots Carolinas shows about the average deterioramoving remarkably easy at $5 per net ton tion for the same period in recent years. f. o. b. cars at ovens. With present labor con- Usually at this season of the year the crop ditions and no hope for improvement it would begins to suffer from lack of moisture, but so seem impossible to increase production to such far only a small area has needed rain. There an extent as to soften prices, and the tendency is some shedding, less, however, than usual, as to advance rather than decrease will no doubt is also true of plant disease, but there is a be shown before the end of the present month. general complaint of the sappy and heavy Foundry coke is scarce, and high grades are growth of the plant, which is fruiting lightly, quotable and easy to move at $6.50 per net ton attributed to continuous wet weather in the f. o, b. at ovens in the Connellsville region. early season. Forecasts indicate a crop yield for the United States approximating 11,000,000 REPORTED BY DISTRICT NO. 5. to 12,000,000 bales, exclusive of linters. Reports indicate a good apple crop through- The continued damaging effects of the July out the fruit sections of the district, that along excess rainfall, the unfavorable weather con- the Chesapeake & Ohio Railroad in Virginia ditions, including hot days, cool nights, and being estimated at approximately 100,000 drought seasons that followed, have resulted barrels more than last year. The prices at in crops generally throughout the district which the growers have contracted to sell apples making slow progress during the month. are better than have been obtained for some Heavy abandonment of corn acreage in the years, and in most instances the sale has been overflowed areas of the eastern Carolinas and made at materially increased prices. Grape damage to cotton and tobacco by excess rain- shipments from North Carolina have been fall are the most noticeable destructive factors. satisfactory, with good prices to the growers. Tobacco is reported variable, or from extra Reports also indicate satisfactory returns for good in the interior sections to very poor in a somewhat short crop of peaches. extreme eastern counties. There are also In the trucking districts of Virginia and eastestimates varying from 60 to 70 per cent of ern North Carolina, crops of canteloupes and normal crop, but at present high prices the watermelons this year have been good and planters expect to offset the shortage in pro- prices realized are quite satisfactory to the duction. The sale of the crop in South Caro- growers. Earlier estimates as to the Irish Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

982 FEDERAL RESERVE BULLETIN. October 1,1919. potato crop wiliberealized, the Virginia yield ex- cotton crop and other damage caused by exceeding other eastern districts, both in quality cessive rains. Agricultural activities throughand quantity, no cause being assigned for this. out the State have been handicapped because of unfavorable weather. In west Florida the REPORTED BY DISTRICT NO. 6. corn crop will be about 75 per cent of normal. Constant rains and the boll weevil have Sweet potatoes are doing well, and indications greatly injured the Georgia and Alabama cot- are for a record-breaking crop. The tobacco ton crop since the last report. Reports from crop will be good. Cotton is virtually ruined a large number of counties indicate only half a by bad weather and boll weevil; what is crop, and in many instances the estimate left of both long and short cotton is now openranges from 40 per cent down to as low as 25 ing and some is being marketed. per cent. In the southern parts of these States Sugar cane and velvet beans are in satisthe damage is particularly severe. In Tennes- factory condition, with fair prospects for a good see, however, cotton has made some improve- crop. Corn is reported at 65 per cent to 70 per ment, though the crop as a whole is 18 days cent of an average crop. late, and frost may yet overtake a part of it. REPORTED BY DISTRICT NO. 7. The tobacco crop in Goergia has been probably reduced several million pounds on account Business in this district is generally reported of weather damage. The first big year for to- as very good. Retailers are selling all the bacco in the State has been unfortunate, owing goods they can get, at high prices, making first to a shortage of plants, trouble in obtaining money enough to cover the increased cost of suitable fertilizers, followed by a period of doing business, collecting their bills promptly heavy washing rains and then by hot sun. In and banking satisfactory profits. The demand some counties as much as 33 per cent of the for the best qualities of merchandise is insistent crop has been abandoned. Other crops ma- and, regardless of newspaper headlines, the terially injured in the last few weeks are pea- people appear to have money in pocket to pay nuts, sweetpotatoes, velvet beans, and cowpeas. for whatever they fancy. Nothing but the In Alabama it is reported that some corn has shortage of stocks in first hands, reduced probeen damaged, but it is now believed the total duction, and delays in transportation prevents production will be greater than that of last a much greater volume of merchandising. year, on a slightly reduced acreage. Peanuts Business mortality is next to nil, credits are will not yield heavily on account of unfavorable well in hand everywhere and the physical condiweather." From Tennessee reports state that tions which restrict buying ahead tend to make early corn was too far gone to be benefited by the outlook more secure than it would be ordirecent rains, but late corn, of which there is narily on so high a price level. Keeping in more than usual, was helped. Tobacco bene- mind the possibility of a "break"—if any unfited greatly by these rains. Some tobacco foreseen event should disturb the chain of had been housed previous to the rains, but all supply, demand, and prices—merchants of all standing is showing marked improvement. grades are proceeding with more than usual The late cuttings of hay were rather short caution. Timid merchants, who can not bring on account of dry weather, pastures were cut themselves into harmony with the state of short in many places, and the acreage of clover things, are liquidating at a profit rather than for seed is much loss than formerly. Potatoes place orders at ruling prices for future deliverof both kinds lacked moisture, but sweets, be- ies. Others, taking the middle course, are ing more of a dry-weather crop, suffered least, placing orders ahead, but protecting themselves and the rains have been of decided benefit. against a possible "slump" by restricting Gardens suffered greatly, and are the poorest quantities to come and limiting their money for many years, the same being true of all vege- liability to the ordinary total. tables. Melons of all kinds are late, and the Speaking generally,' the volume of retail acreage short. Few Tennessee melons are on trade measured in dollars is very large, about the market. Sorghum acreage for sirup is 40 per cent over 1918, and, because of the short on account of the late wet spring, while "holding off" policy of many people, the indipeanuts with a greatly reduced acreage show cations are that it will increase this fall and some improvement. winter. Returning soldiers are a large factor Reports from Florida indicate that condi- in the buying of staples and as they settle tions in the farming sections of that State are down to normal civil life they will afford a good somewhat depressed due to the failure of the prop for producers and distributors alike. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

October 1,1919. FEDERAL RESERVE BULLETIN. 933 Textiles and shoes rule at high and higher small- stocks and some irritation over execuprices, with ginghams 20 per cent advanced for tive attempts to interfere with the usual rou- 1920 delivery and shoes "pegged" at the tine of warehousing future requirements when present level at least until January. Raw the supply is abundant. Sugar is scarce and leather, however, is " steadying," indicating a fruit also, indicating a small winter ration of gradual readjustment. The demand for silks is sweets and preserves. Stocks are hardly norcharacterized as "extravagant" and the high mal. Shipments are very slow and the shelves prices merely signify scarcity. Diminished show gaps in important items. Volume of output is attributed in part to labor and in part trade is far ahead of last year. Few "no pay v to short supplies of raw materials. Luxuries customers are left. Credits are at peak^ colare gobbled up faster than they can be pro- lections good, with few failures in the trade. duced. The people will have jewelry and they want the costliest. The watch factories can REPORTED BY DISTRICT NO. 8. not keep up with orders, partly because it is impossible to obtain materials and efficient The shortage of coal is hampering manulabor. Prices would go higher but for the facturing in some lines, while others are handipolicy of one dominant factor, stated thus: capped by the scarcity of raw materials and "We do not want to see this vicious circle of the lack of skilled labor. These difficulties, advanced prices and costs go on any longer." however, indicate a large demand for manu- In the wool and woolens department matters factured products, and are partly due to the are in an uncertain state, Merinos and the exceptionally rapid increase of business within high-grade apparel wools are higher. Off the past few months. There is a general exgrades trend downward. Radical advances in pectation of a large fall and winter trade. prices for 1920 clothing are announced on the Clothing manufacturers" report increases in basis of higher costs due to shorter hours of mill their business during August as high as 50 per labor and much reduced production. Stocks cent over the corresponding month last year. in retail hands are very low and deliveries are One concern states that it made no sales durbeing made in some cases at contract prices ing the past month because its season's busirepresenting actual loss to manufacturer and ness was sold up. There are complaints of jobber. Present costs are figured about 30 per difficulty in obtaining silks and woolens. cent up, and this increased cost put against Retail merchants have built up their stocks prices made to dealers a few months ago, means of goods to a better point than at this time last doing business for nothing. Hand to mouth month. Some concerns have placed larger ordeliveries are the rule, cutting against orders ders under the belief that the factories will being the necessary rule. Overcoats are scarce only be able to fill part of their demands. and likely to command a good price. While the retail trade continues to show ma- In furniture there is an interesting situation. terial gains over last year, it has steadied from Suitable woods are scarce and competent labor its previous rapid growth and is on a par with even scarcer. Poor housing facilities, due to or shows only slight increases over July. high building costs, account for some of the Dealers anticipate a good fall and winter trade, trouble. Sales are reported from 50 to 60 per but in some sections say the prevailing warm cent over 1918 and some manufacturers have weather has delayed the urgency of the deadvanced prices about 10 per cent. Factories mand for seasonable merchandise. are booked to 75 per cent oi the year's capacity if no new orders are received Buyers are already in the market for 1920 shipments; local REPORTED BY DISTRICT NO. 9. stocks are low and sold out as soon as uncrated. The enormous mobility of the Ameri- We have had very little rainfall since the can people and the increase of migratory club 1st of July and all small grains are showing a and hotel existence have made necessary a poor return, .with many sections in North Dagreat increase in transient housing capacity at kota, South Dakota, and Montana reporting a all trade and industrial centers. How these complete failure. The irrigated districts in new hotels are to be outfitted is the problem. Montana show good crop returns. Prices for Furniture makers are unable to furnish the farm products and the very satisfactory conneeded equipment, and in some cases are re- dition of the corn and hay crop will, however,, fusing to book orders. practically make up to the farmer for any loss The grocery trade is worrying along with caused by the short small-grain crop, rota- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

934 FEDERAL RESERVE BULLETIN. October 1, 1919. toes in Minnesota and Wisconsin are about 50 price. Abundant supplies in sight, despite per cent of normal, with not a sufficient in- substantial reductions from the early estimates, crease in acreage to bring the total yield up to brought a downward turn to corn prices. anywhere near a satisfactory figure. The From the high levels obtaining early in August outlook for corn is very encouraging at the around $2 basis, September corn dropped to present time. Light frosts have been reported $1.40 by September 16. September oats at in various sections of the country, but no dam- the same date were down to 67 cents, a deage has been done as yet. The hay crop this cline of 9 cents from the selling price on Auyear is far above normal, especially in Minne- gust 15. sota and Wisconsin. Good tame hay is selling With a generally satisfactory demand, and at approximately $20 per ton in the stack. orders booked for 30 to 60 days ahead, the flour This will be an important item, so far as the mills of the district are operating this month at farmer's income is concerned this year. a little below full capacity and millers have not Considerable activity in farm lands is again been pushing sales. Prices have shown some reported, caused by a lull in farm work after slight weakening in the past four weeks. On harvest. Many farmers from Iowa and Illi- September 16 car-lot quotations (Kansas City) nois are looking about for good opportunities on hard-wheat flour were, per barrel, as follows: to invest surplus cash. Every day farmers Short patent, $10.40 to $10.70; long patent, from sections south of here are passing through $10 to $10.40; straight, $9.50 to $10; clears, on their way to North Dakota, Canada, north- $7.50 to $9.50; low grade, $6.50 to $7. ern Minnesota, and northern Wisconsin. Live-stock movement.—The heavy fall move- The milling of flour is progressing satisfac- ment of cattle, which started about the middle torily. Most of the mills are now running at of August, brought the receipts for that month full capacity, but all are reporting a low grade up to within 20,542 of the high August record of wheat. of last year, the movement continuing through September to date with a supply slightly in REPORTED BY DISTRICT NO. 10. excess of the corresponding period last year. August receipts of hogs were 256,188 less than Grain movement.—Since the 1919 crop of in August a year ago, and for the first half of wheat began to move marketward the receipts September the supply at the six markets has at the terminal centers of this district have been been about the same as at this time last year. in larger volume than last year, the increase Receipts of sheep have been unprecedently varying from 15 per cent to 35 per cent at heavy this year, the August marketings totaling different centers. As a consequence there 1,149,075 at the six markets, of which Omaha have been large accumulations of wheat stock received 687,071, the receipts for the first 16 in elevators, in addition to a large shipping de- days of September showing no appreciable mand. Since the heavy run of wheat began change in the volume of sheej) marketed. grain has been shipped, except at brief inter- The increase of common to fair kinds of cattle vals, under the blanket permit system, owing was reflected in sharp declines in prices, which to the congestion of railroad yards, which was had a tendency to weaken the price on choice largely due to inadequacy of cars for out-ship- grass-fed cattle. The supply of prime finished ments of grain, flour, and mill feed. Blocking fed steers was hardly up to the demand and of the Gulf ports with grain is also said to have prices on this grade were not materially affected, been partly responsible for the congestion. the top price for the month being $19 and Corn receipts in August were only about one- around $18.50 at the close of the month; about half as large as in July and about one-fourth as the same on September 16. large as the receipts a year,ago. There is little The hog market in August was uneven, corn in the country and receipts are expected opening with prices well above $22 and closing to continue light until the new crop comes in. at $19.50. Further declines and demoraliza- Receipts of oats are also about one-half the tion came during the first half of September as volume of a year ago at this time. a result of diminishing export demand and un- The very large receipts and accumulated settled feeling in the meat trade. By Septemsupplies of wheat brought about a lower range ber 6 packers'droves were selling at $19.02; of prices this month, dark-head wheat com- one week later the}' sold at $16.23; on Sepmanding not more than 10 cents premium tember 16 they were sold at $16.75 to $17.25. above the Government guaranty, with large Mutton prices have shown a downward tendquantities of wheat selling at the guaranteed ency, the big movement from the ranges Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

October 1, 1919. FEDERAL RESERVE BULLETIN. 985 having started two weeks earlier than last REPORTED BY DISTRICT NO. 11. year. Choice range lambs sold up to $17.75 at the middle of August and at the close of the Agriculture.—In general, it is not likely month the extreme top was $15, while native that the crop in Texas will much exceed that of lambs were $2.50 to S3 lower. A strong killing last year, and it is possible that it may fall demand in September checked further sharp slightly below last year's crop". However* with declines, and on September 16 the best western ideal conditions, fair weather, and a late lambs were $15.25 and natives $14.50. frost, it is possible, though not likely, that With an increased supply of rough feed in Texas might make the three to three" and a the country and pastures freshened by sea- quarter million bales of cotton. sonal rains, conditions for feeding live stock A report issued under Government authority were materially improved in the district, and estimated the Texas cotton crop at a condition it is predicted an increased supply of well-fed of 61 per cent of normal on August 25. 'Unstock will come to the markets later on. doubtedly, in many sections there has been a Mining.—There was quite a little improve- heavy loss and deterioration since that time, ment in metal mining conditions in Colorado though in the western and northwestern parts during August. The evidence of this is not so of the State there has not been any consideramuch in any great increase in production as in ble deterioration, while over great areas of the renewed interest in mining, which is shown by State the crop has done very well. several important deals in mining property The damage by insects has been very throughout the State which are now pending or heavy, especially in counties of central, south have recently been consummated. and southeast Texas. Undoubtedly, tne crop In the Missouri-Kansas-Oklahoma district all over south Texas is going to be very short. there was a slowing down of the market for There has, too, in recent weeks been great zinc ores in August from the promise of the loss in the black waxy belt of north Texas, preceding month which reacted on the general due to the boll-weevil and army worm. The economic situation. This came largely as a crop is everywhere late, and there is considresult of the difficulty of obtaining cars for erable shortage of labor, and, where obtainable, shipping out the ore purchased, the market prices being paid are abnormally high. The range being dependent on the movement of ore. crop is very spotted, and the ultimate result The range for zinc blende ores was $45 to $50 will depend veiy much upon seasonal conditions per ton for the month, closing with $46 for the from this time on. high grades and $45 for second grades. The We have made the heaviest and best corn average price for calamine was $29.48 for the crop ever raised in the State, and for the month. Shipments of blende ores totaled first time within recollection the price of corn 34,148 tons and of calamine ores 892 tons for on the exchange in Chicago has been seriously the month. Production grew noticeably dur- affected by the heavy receipts of corn from ing the month and unless shipments reach very Texas. much greater tonnages the surplus stocks will The grain crop was also large beyond precagain reach beyond record heights. edent, though, due to heavy rains and the Lead ores were decidedly strong all month, shortage of labor, a considerable portion of the the range being $62.50 to $70, closing strong. wheat was damaged, a small portion of it Some outside buying brought the price up to being entirely destroyed. The crop of other $70, local buyers holding their bids to $65. grains was good, while the hay and forage Many mines have again started up operations crop pretty well over the State is the best in and production is rated close to 8,800 tons recent years. weekly. How long this will continue is a mooted The rice crop is late and has suffered from question in view of the fact that it is impossible unfavorable weather conditions. The acreage to obtain cars for shipment. The cars that in Texas and Louisiana is heavier than it was are supplied are being repaired by the shippers last season and the present condition of the in order to get out the ore. The lumber bill crop, according to Government estimates, is for car repairs was yerj large. Any car that above normal. Last year when prices were can be pressed into service is used, no matter controlled by the Government the average what it costs the shipper to repair it. paid for rough rice was $7.25 per barrel, Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

986 FEDERAL RESERVE BULLETIN. October 1,1919. whereas, the same production is selling for are reported to have injured the raisin crop. $10.50 per barrel. These high prices were The estimated yield of 200,000 tons of raisins brought about by the heavy inquiry for export will be somewhat reduced, but last year's crop during the latter part of last season. It is of 167,000 tons will be considerably exceeded. predicted that prices will continue higher than The Associated Raisin Co. has set opening those paid last year for both rough and clean prices for this year's crop which are calculated rice, due to the high price of the foreign product. to yield the growers an average return of 10 Oil.—The development in the oil fields of cents on Muscats, llf cents on Thompsons, and Burkburnett and Ranger continues to in- 11 cents on Sultanas, compared with 5-|- cents, crease and new wells are being brought in 6f cents, and 6-J cents, respectively, for last from time to time. As the result the produc- year. Dried apricots are safely housed, peaches tion is in excess of the pipe-line capacity; and nearly so, while the drying of prunes, which this has caused a decline in prices. Prices are reported to be running somewhat smaller offered by the smaller companies have ranged in size than anticipated, is now at its height. from $1.25 to $1.75 per barrel and those While the prune crop will be the largest ever offered by the larger companies around $2.25 raised, later reports indicate that the yield wilj per barrel. Production in the Burkburnett fall somewhat below the former estimate of field is conservatively estimated at 150,000 150,000 tons. barrels' per da}-, of which it is estimated about The almond crop of California, approxi- 95,000 barrels per day is being marketed. mately 98 per cent of the country's production, The scarcity of material, such as pipe casing sets a record both as to volume and price. and other machinery necessary in the pro- Present estimates place the crop at 7,000 tons duction, has a "tendency to slow up the devel- compared with 5,100 tons for 1918. Opening opment. The labor situation is ample, attrib- prices set by the association are 23J cents to utable to a great extent to the fact that 32J cents per pound, compared with 20 cents drilling operations have fallen off in the last to 27| cents for the previous crop. Likewise, thirty days. the walnut crop, approximately 95 per cent of the country's production, sets a record production in an estimated crop of 23,000 to 25,000 REPORTED BY DISTRICT NO. 12. tons, compared with 20,000 tons for 1918. The harvesting of grain, excepting corn and Opening prices will be set by the association on rice, is now practically completed throughout October 1, probably close to 35 cents per the district. The movement of the heavy crop pound. of Washington and Oregon apples is well under Returns of $75,600,000 to citrus growers for way at prices which will 37ield the grower ap- the year ended August 31 are the largest ever reproximately $2.25 per box, as compared with ceived by the industry in California. The total $2 for last year's' crop. The percentage of production for the State was 35,778 carloads fancy apples is considerably larger this year of oranges and grapefruit and 9,914 carloads than usual. The gathering of the peach crop, of lemons. The crops of lemons and Valencia nearing completion in California and Utah, is oranges were the largest ever shipped from the at its height in Washington and Idaho. Trans- State, lemons showing an increase of 70.2 per portation facilities are insufficient to handle the cent over last year and 22.3 per cent over 1917, unusually large crop of California grapes, which the largest preceding year, while Valencias before the present acute shortage of cars were show an increase of 78 per cent over 1917, the being shipped at the rate of about 300 cars last normal year. daily. Wine grapes, at record prices, are being Scientists recently returned from an exshipped to eastern points in greater quantities haustive investigation of the salmon fishing tlian ever before. An interesting development industry report that this invaluable species of is the measure of relief thus afforded from heavy fish is on the way to rapid extinction, and that losses anticipated through the enactment of the industry will require the most rigid Govthe prohibition law. ernment regulation for its rehabilitation. Re- Favorable weather conditions, so essential to liable estimates place this year's entire coast California's sun-dried fruit, have prevailed gen- pack, including British Columbia, Siberia, and erally, although showers have caused a slight Japan, at 5,500,000 cases, compared with damage in some parts, and high temperatures 10,100,000 cases in 1918. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

October 1,1919. FEDERAL RESERVE BULLETIN. 937 THE BUDGET SYSTEM. upon the well-to-do and more heavily upon the well-to-do than upon the rich. By graduated income taxes we tend Following is a statement by Secretary Glass to mitigate this consequence, but we can not wholly on the budget, delivered before the Select avoid it. Let us not fail to remember that the Govern- Committee on the Budget of the House of ment of the United States is simply a name for the people of the United States, and that all of the people of the Representatives on October 4, 1919: United States will pay in inverse order to their ability I am heartily in favor of a budget system. Without for extravagances of the Government perpetrated in the effective control over governmental expenditures and interest of a portion of the people or a section of the limitation of them to the Government's income we shall country. bring down upon our heads the splendid structure which You gentlemen, I am sure, have learned as well as I by our fathers have built, and which we have preserved. long service in Congress that the instincts and enthusiasms The very success (which you will pardon me if I call of departments, bureaus, and boards find support in the brilliant) with which the Treasury has financed the committees of Congress appointed to have charge of their stupendous requirements imposed upon America by the particular affairs. As a result we find that governmental great war may become a menace. All sense of values expenditure initiated in a department of the Government seems to have departed from among us. The depart- charged with the specific business of creating an army, ments, bureaus, and boards, all inspired by a laudable or of creating a navy, or of creating a merchant marine, or enthusiasm for their work, but some by a less laudable of stimulating commerce, or of protecting labor, or of instinct to magnify its importance, bombard the com- aiding the development of agriculture, is submitted to the mittees of Congress with projects, some more or less Congress without consultation with or approval by the meritorious, some of no merit whatever, but all con- finance officer of the Government, the Secretary of the ceived in sublime indifference to the fact that the great Treasury, who serves merely as a messenger, and whose business of Government is being run at a loss and that office is charged with the heavy burden of finding finaneach one of these projects increases the deficit of the cial means in loans and taxes to meet expenditures; and Government and consequently the burden to be thrown when it reaches Congress is referred to the corresponding upon the great body of people, whether the deficit be committees of the Congress, whose specific function is also met by increasing taxes or by floating additional loans. to see to the development of the Army, the Navy, the mer- For no fallacy is more grotesque than the assumption that chant marine, etc. And the Congress passes upon all of by issuing bonds or notes or certificates of indebtedness these projects—good, bad, and indifferent—without a renow we may pass on to future generations the burden of port from the Committee on Ways and Means or the Comour own extravagance. The burden of these issues will mittee on Finance, the committees of Congress which have to be met to-day, not only in the interest and sinking share with the Secretary of the Treasury the heavy burden fund charges added to an already heavy load but in the of finance. expansion of credit which is inevitable as a result of the It undoubtedly is true that, oftener than otherwise, the issue of such securities, constituting as they do a prime sum of department estimates is greater than allowed by basis for additional credit in the hands of the holders, the committees of Congress. I have heard it said that whoever they may be. I shall not elaborate upon that this is invariably so. I suspect that estimates are frepoint, but I want to say to you in all solemnity that quently contrived with a confident expectation of such a 100,000,000 American people will pay for the extrava- fate. Nevertheless, it must be admitted that each jurisgance of the Government, whether that extravagance dictional committee deals with estimates in a singularly finds its incidence in governmental waste or in the sympathetic spirit, that would not be manifested by a desire to accomplish real or fancied benefits for a portion budgetary official charged with the responsibility of adof the community. vising the Congress as to the levying of taxes as well as Let us now get back to bedrock. Let us remember that with the responsibility of collecting the money of which there can be no spending by the Government without pay- appropriations are made. Moreover, it will not be denied ing by the Government, and that the Government can not that these various jurisdictional committees, acting sepapay except out of the pockets of the people. Let us rately and without complete information concerning the remember, too, that in the last analysis taxes and the activities of one another, accentuate the importance of cost of Government loans are borne by 100,000,000 people. the departments, bureaus, and boards which they respec- The burden of taxation, the burden of credit expansion, tively have under their care. This would not be so if is inevitably shifted to the whole people of the United appropriations were made by a single committee, any States. Some methods of finance are better than others. more than would the initial estimates be allowed so far to Some taxes are less readily adapted to being shifted from exceed the probable revenues if the Finance Minister of the backs of the original taxpayers, presumably better the Government were given power to assemble, review, able to bear them, to the backs of the people as a whole, and alter them before transmitting them to the Congress. but in the long run the burden of governmental waste Extravagance of executive departments and bureaus and extravagance falls more heavily upon the poor than would thereby be appreciably restrained. I think it 139895—19 3 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

938 FEDERAL RESERVE BULLETIN. October 1,1919. amazing that under such a system the Congress has done or that element in the community. This it does upon the so well for so long a time; but I feel constrained to warn advice of the committee of Congress charged with the you gentlemen, in view of the greatly expanded activities business of caring for such special interests. Then, speakof the Government and the extraordinary financial bur- ing through the great Committee on Appropriations, it dens which the country must endure, that it would be pursues a policy of restriction with relation to the expenhazardous to continue on the old way of transacting the ditures of some of the departments of the Government public business. which makes it impossible for those departments to con- The Government of the United States is like a great duct the vast affairs imposed upon them with efficiency company whose operating managers, publicity managers, and economy. The Government of the United States sales managers, purchasing department, are given carte to-day is spending hundreds of millions of dollars, even blanche to make expenditures, conceived by them to be billions of dollars, for armies, for navies, for merchant in the interest of the development of the business, without fleets and other magnificent activities, and at the same consultation with or control by those officers of the com- time refusing the payment of a living wage to the faithful pany who are charged with the business of ascertaining its clerks and employees in departments of the Government revenues and borrowing the money to make good their charged with the stupendous responsibility of transacting deficiencies. these vast affairs honestly, expeditiously, and economic- Or, again, the Government -oi the United States is like ally. a private family in which the wife, having charge of the While your committee is considering a budget and an spending part of the family's business, were given carte audit in the interest of the Government, the Government blanche to buy houses, yachts, automobiles, clothes, and of the United States is in danger of losing millions of food, and to employ servants, as she might find wise with dollars because some of the departments charged with the a view to increasing the comfort, improving the education, conduct of its business are undermanned, limited to the cultivating the taste, and enhancing the prestige and social employment of less efficient help than they should have, standing of the family; and the husband's sole business and provided with insufficient space to house those emwere to see that there was money in the bank to meet her ployees. While you are considering the reform of the checks as they were presented. audit, the work in the office of the auditors is months That is a most pronounced hyperbole, but it is literally behind because of the failure to provide an adequate force true that the Secretary of the Treasury under existing law or adequate space to transact their business. and practice is unable to obtain from any department of While you discuss the budget plans and audit plans the the Government an accurate or approximately accurate Congress withholds the necessary funds to erect an adeestimate of its expenditures for a few weeks in advance, quate vault for the protection of the vast gold store of the not to say months or years. He must be guided not by United States. It withholds the necessary appropriation information furnished by them, but by his own shrewd to enable the Treasury of the United States to count guess as a result of putting together an infinite number Federal Reserve Bank notes and national-bank notes of little facts and figures. That the Treasury has been turned in for redemption, with the result that the Treasury able, notwithstanding these intolerable conditions, to is unable to take credit for those notes and is obliged to finance the Government through the great war and up to borrow corresponding sums of moneys at interest running this date without impairing the credit but, on the con- at 4£ and 4£ per cent and this notwithstanding that any trary, with enhancement of the credit of the Government appropriation made for this purpose will be charged back of the United States, is due, first, to the loyalty and devo- to the banks and cost not one penny to the Government of tion of the whole American people throughout the period the United States. Bonds, notes, and gold, with the of the war, to the magnificent efforts of the patriotic Lib- custody of which the Treasury is charged, are inadeerty loan organizations, to the unqualified support given quately protected. There is an insufficient force to care the Treasury by the Congress without regard to party, and for them. The force we have is underpaid. The work in if I may say so, to the rather exceptional skill and inge- the Treasurer's office is behind; the work in the Division of nuity with which the Treasury has been conducted during Loans and Currency is behind; the work in the Division of this difficult period. But I say to you, it is an intolerable Public Moneys is behind; the work in the Register's office thing that such conditions should exist and that the welfare is behind; the work in the offices of all the auditors is and economic life of the American people should be at the behind; and the securities and moneys of the United States hazard of such things as these. are inadequately protected because the Congress with- As a former colleague, and in a spirit of frank comradeship holds the necessary appropriations. .vhich such association inspires, I am prompted here to I have spoken of the need of an executive budget snteT a complaint which may not be ascribed to a desire to covering all appropriations asked for by the executive be critical, but to a hope that it may be given serious atten- departments. But let us be honest with ourselves and tion in behalf of administrative efficiency. The Congress honest with the American people. A budget which does votes with a lavish hand stupendous sums conceived in a not cover the initiation or increase of appropriations by magnificent spirit of generosity with a view to the enhance- Congress will be a semblance of the real thing. I note ment of the prestige of the Nation, or for the benefit of this that not a little has been said aboutjthe constitutional Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

October 1 1919. FEDERAL RESERVE BULLETIN. 939 5 prerogatives of Congress, but I know of no clause in our spirit of unselfishness—not one of self-seeking—to fight for Constitution that will prevent the Congress exercising their country. You may ask the old men and the widows, self-control. The houses of Congress can, by amendment the school children, the rich and the poor, who responded of their own rules, surround with proper safeguards the to the call of their country to the number of twenty millions initiation and the increase of appropriations by Congress. during the period of the war to respond again to this call To-day the credit of the United States is imperiled by for a donation. I hope I shall never shrink from the perprojects initiated and supported on the floor of Congress formance of any public duty, yet I do not covet the task with a view to capturing the so-called soldier vote. I do of making such an appeal, and I shall not willingly be a not believe for a minute there is any such thing as the party to offering this affront to the generous, heroic, unsoldier vote. I do not believe that that magnificent selfish Army and Navy of America that saved the freedom body of strong, brave, lusty young men who went out to of the world. France, or were ready to go, want to see the people of the The Congress may propose to pay this gift in bonds United States exploited in order that each of them may themselves, but that should not fool anyone. If bonds are receive a donation. I do not believe these fine young men, given away to the soldiers the issuance in that manner of if they realized what it is that is proposed in their behalf, those bonds will depress the prices of existing bonds so, would accept a gift made at the expense of their fathers gravely as to imperil the credit of the United States and and mothers and sisters and the children that are to come force additional sacrifices from the twenty million people after them in order to give them a-holiday. While, of who participated in financing the war, in providing the course, you can not commit to terms of money the value pay, food, and munitions which made it possible for our of the service rendered by the Army of America, I call splendid Army to contribute decisively to the grea$ your attention to the fact that the actual pay of our soldiers victory. was doubled at the outset of the war; that our soldiers have I have spoken of the initiation of appropriations in Conbeen paid with liberality never dreamed of in the history gress. Let me speak also of the increase of appropriations. of this or any other country, and that the projects now As you all know, and as I know after 17 years in Congress advocated so lavishly and with so little regard for the and not more than half as many months in the Treasury, welfare of the American people are not limited to those the processes employed in framing and passing public heroic men who suffered injury or death at the hands of buildings and rivers and harbors bills lead to a great waste the enemy—not even to those who actually saw the front, of the money of the people. The continuance of the not even to those who were sent to France. These projects United States Government's activities where they are not extend to everyone of some four and one-half million men needed, whether those activities be Army posts or suba mostly young men, who were included in the military and treasuries, or hospitals, would have scant consideration naval forces of the United States, even to those of their in a real business budget submitted by a Finance Minister, number who sought and obtained employment of a char- duly empowered by law, and managed through Congress acter which would relieve them from being exposed to by a single committee under rules of limitation imposed personal risk. by the Congress on itself. In my belief, you can not make It has been the disheartening task of the Treasury to a real budget unless you face these facts and deal with examine scores and scores of bills drawn and presented them. The Congress of the United States, in attempting with a view to benefiting a section of the country or a this great reform in the interest of economy and efficiency, portion of its citizenship at the expense of the whole. will fail and fail utterly if, while imposing the necessary Many of these bills were apparently devised to avoid the firm control over the expenditures of the executive deappearance of an appropriation by requiring the Secretary partments, it fails to exercise the sublime quality of selfof the Treasury to issue bonds, notes, or certificates of control. indebtedness to meet the expenditure involved, and all Coming to matters of detail, let me summarize briefly of these bills were such as would not be reached by a my views as follows: First, a budget, to be effective, must purely executive budget. cover all appropriations and all increases of appropria- I have said the finances of the United States are in excel- tions, whether initiated in the executive departments or lent condition. I have said in substance that I do not in the Congress. The Bureau of the Budget should be anticipate a deficit in the current fiscal year in excess of in the office of the Secretary of the Treasury, the officer of SI,000,000,000, and that that deficit is covered by deferred the Government charged with the heavy burden of findinstallments of the Victory loan, payable within the fiscal ing the means to finance its requirements. The division year. I have said that there need be no more Liberty of responsibility is the bane of our Government. It is loans. But I say to you in all solemnity that if a prompt intolerable that the Secretary of the Treasury should and immediate halt is not called to this great peril, there have no voice in the determination of the expenditures of must be another Liberty loan, and you gentlemen will the Government. It is intolerable to think that his funchave to go out to the people of the United States and call tion should be merely to go out and borrow the money upon them to subscribe for bonds, the proceeds of which when someone else has spent it without consultation with are to be given away to the well and strong young men who him or consideration of the means to raise it. The prepayou and I and the American people know went out in a ration of the budget should be the principal duty of the Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

940 FEDERAL RESERVE BULLETIN. October 1, 1919. Finance Minister. We all know that the President of finance. If I may venture an opinion as to whether can not do this thing. We all know that a bureau chief the budget should be considered in one committee or disin the office of the President would be helpless to assert tributed among the present committees that consider his opinion in opposition to the members of the President's appropriations, I should say that it would be preferable Cabinet. Projects of the Government involving expen- to consider it as a whole and by one committee. The ditures should be determined in conference between the forum of consideration, however, is not quite so important members of the Cabinet concerned, and the President's as the question of the disposition of the budget at the decision should be final. So far as concerns the question hands of Congress. That, in my judgment, is of the how much money can be raised in loans and taxes and essence of an effective budget. While Congress should to what amount, therefore, the total expenditures of the retain the right to reduce the estimates, I believe that it Government should be limited and for all budgetary work, should, as far as the budget itself is concerned, put some the President should obtain his advice from the Secretary distinct limitation on the right to increase any item either of the Treasury and not from a bureau chief appointed in committee or on the floor unless recommended by the for the purpose, and paralleling the work of the Secretary Secretary of the Treasury, or, in the absence of such of the Treasury. The budget plans presented to this com- recommendation, unless approved by two-thirds of the mittee generally do not contemplate increasing the voice membership of Congress. The only increase on the floor of the Secretary of the Treasury in determining the which should be permitted would be the restoration of an Government's expenditures but, on the contrary, contem- item reduced by the committee to the original figure plate depriving him of such voice as he already has. I recommended by the Secretary. ask you what there is in the record of the Treasury of the Under such a scheme the budget would come out of United States from the time of Alexander Hamilton to Congress practically as the President's budget and for this present day which justifies this distrust? Which which he must stand definitely responsible before the of the departments of the Government has deserved country. If the Congress desired to propose new expendbetter of the American people or of this Congress? What itures, it should be done in a separate bill, and if the reason have you to believe that the Secretary of the expenditure which such legislation would entail would Treasury, with the support of the great institution over make the total expenditures exceed the estimated revewhich he presides, the oldest of Government departments, nues, the Congress should provide in the bill of approcan not, if due authority be conferred upon him, under- priation specifically for the required revenue to make up take this task so vital to the welfare of the people and so the deficit. In this way Congress would not forfeit any vital to the success of the administration of his office? right to initiate appropriations, but such right would be We multiply boards and bureaus, we multiply clerks and only separated from the budget. statisticians, and perpetually we attempt to hobble those The program would stand before the country with a great officers of the Government upon whom rest the clear line of demarcation as to the appropriations for which responsibility for producing the necessary results. Why the President was responsible and those for which the not go back to first principles and trust these men until Congress assumed the principal responsibility. they fail you and then get rid of them? What good can Third, there should be an audit and an effective audit. come of a policy of imposing tremendous responsibility The audit now provided by law is effective when made to upon the great officers of the Government and then tying insure that expenditures have been made in accordance their hands so that they can accomplish nothing? with law. The first step before Congress is to appro- Whether the budget service should be in the form of a priate funds sufficient to enable the auditors to make bureau in the Treasury is a matter of detail which can be the audit which is provided for under existing law. The worked out. Whatever form such a staff of the Secretary second step is to enlarge the scope of the audit, strengthen of the Treasury should take, I am inclined to believe that the powers and enlarge the force so that there may be it should be composed of experts whose tenure of office, covered also the question whether expenditures have been with the possible exception of the head, would be in the made efficiently, economically and without duplication. nature of permanence. For this purpose it is vitally necessary that there should If thi3 additional duty should be imposed upon the be only one auditor instead of half a dozen. It is desir- Secretary of the Treasury, I think it would be wise to able that the offices of the comptroller and auditors should relieve him of activities which have no relation to the be rolled into one. As a step in that direction Secretary financial operations of the Government. The department McAdoo on October 25, 1918, issued an order directing should retain all the fiscal bureaus and divisions, and the the Comptroller of the Treasury to exercise administrative Coast Guard, which has to do with the collection and super vision and direction of all the auditing offices. protection of the revenue, but in a readjustment of this This was the first time that the auditors were placed character I think that it could well dispense with the under the administrative control of the comptroller, Bureau of War Risk Insurance, the Bureau of Public and the order was as far as it was possible to go without Health, and perhaps the Supervising Architect's Office. amendment of the law. Second, when the budget has been received by the In connection with the suggestion that the Comptroller Congress it will be accepted as the President's program of the Treasury and the auditors be divorced from the Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

October 1,1919. FEDERAL RESERVE BULLETIN. 941 Treasury Department and erected as an independent of the Government it shall be the duty of the Secretary of establishment, it is not clearly defined in any of the the Treasury to estimate as nearly as may be the revenues of the Government for the ensuing fiscal year, and if the proposals just what change is contemplated in the accountestimates for appropriations, including the estimated ing system. It must be remembered that the comptroller amount necessary to meet all continuing and permanent and the auditors are not merely auditors ol expenditures appropriations, shall exceed the estimated revenues the with respect to their regularity and legality, but they Secretary of the Treasury shall transmit the estimates to Congress as heretofore required by law and at once transare the accounting officers of the Treasury. They pass mit a detailed statement of all of said estimates to the upon and check the accounts in connection with every President, to the end that he may, in giving Congress financial transaction, whether it relates to the receipt of information of the state of the Union and in recommending money, to direct payments out of the Treasury, to repay- to their consideration such measures as he may judge ments to the credit of appropriations, to credits to dis- necessary, advise the Congress how in his judgment the estimated appropriations could with least injury to the bursing officers, or to payments by disbursing officers. public service be reduced so as to bring the appropriations In the management of the Nation's finances the Secre- within the estimated revenues, or, if such reduction be tary of the Treasury must have an effective system of not in his judgment practicable without undue injury to the public service, that he may recommend to Congress accounting and bookkeeping. If the comptroller and such loans or new taxes as may be necessary to cover the auditors were transferred from the Treasury I am inclined deficiency. to think that it would be necessary to duplicate much of this accounting and bookkeeping in their offices. If the It has been stated that this section of law contemplates comptroller, as an independent officer, is to be in a position the preparation of an adequate book of estimates along to give information to the Congress, as the suggestions budgetary lines. Such, in*my judgment, is not the case. seem to contemplate, unquestionably it would be neces- In the first place the act states that in case the estimates sary for him to duplicate the bookkeeping operations of for appropriations exceed the estimated revenues, a the Division of Public Moneys and the Division of Book- detailed statement shall be made to the President by the keeping and Warrants of the Treasury Department, and Secretary of the Treasury, in order that he may adviee the also some of the bookkeeping operations of the office of Congress how in his judgment the estimated appropriathe Treasurer of the United States. At the present time, tions could with least injury to the public service be however, I express no definite opinion on this suggested reduced, or, if they can not be reduced, inforder that he change because it has not been put forward in such detail may recommend such loans or new taxes as may be necesas to permit the expression of judgment from the stand- sary to cover the deficiency. I call your particular point of the accounting and bookkeeping requirements of attention to the fact that the act states that in the conthe Treasury. If the auditing department should be tingency mentioned the President may recommend how without the walls of the Treasury, it is vital that the the appropriations may be reduced.|; That is an implicit auditor or comptroller, whatever he may be called, sanction by law of the present situation, or at least a should be as free from interference by the members of recognition in the statute that the estimates as now subthe legislature and by members of the other departments mitted are compiled without regard to the Nation's of the Government as he is now in the Treasury. It has income. When the estimates go to Congress under any been the duty and the pleasure of the Treasury Depart- proper system, they should represent in the first instance ment to uphold the comptroller in his independence as a the minimum requirements of the Government as related quasi-judicial officer even in cases where his determina- to its prospective receipts. tions did not commend themselves to the Treasury. It is^ In the second place, I invite attention to the fact that of course, only human for the comptroller to favor his this law applies only to the regular annual estimates of own personal elevation from a subordinate to an inde- appropriations, that is to say, the appropriations which pendent position. There is nothing blameworthy in are submitted for the ensuing fiscal year. It does not that. The present comptroller has my support and apply to estimates for deficiencies and supplemental confidence. He is a brave, upright and on the whole appropriations. When the Secretary of the Treasury sends wise public servant. Whether any comptroller would be the book of estimates to the Congress, less than one-half of able to exercise his functions as effectively and freely, the current fiscal year has expired, but there is no requiredeprived of the support and prestige of the great Treasury ment in law for any action whatever on the part of the Department and left to stand upon his own feet as the executive in case of an estimated deficit in the Treasury head of an independent office, I am doubtful. On the at the end of that current fiscal year as a result of deficiency whole, I am inclined to the view that the best interests and supplemental estimates. of efficiency and economy require that the audit be In the third place, I should point out that this law comconducted under the supervision of the Finance Minister pares estimated receipts and estimates of appropriations, of the Government, the man upon whose shoulders will whereas it should compare estimated receipts and estifall the consequences of extravagance and waste. mated expenditures. At the time it was drawn, however, The act of March 4, 1909, provides— it was not customary for the Secretary of the Treasury to estimate the expenditure for the ensuing fiscal Immediately upon the receipt of the regular annual estimates of appropriations needed for the various branches year. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

942 FEDERAL RESERVE BULLETIN". October 1,1919. It has been stated that no attention has been paid to the the fiscal year 1917. In conformity with the statute, statute. The facts are these: President Wilson similarly dealt with the situation in his The estimates for the fiscal year 1911 were transmitted message to Congress December 7. to Congress December 6, 1909, and, therefore, were the The Annual Report of the Secretary of the Treasury, sent first regular annual estimates of appropriations to be trans- to Congress in December, 1916, referred to the estimates for mitted after the passage of the law. the fiscal year ending June 30, 1918. The estimates indi- The 1911 estimates showed an estimated excess of ordi- cated that there would be a deficit on account of the pronary receipts over ordinary appropriations of S35,931,327.49, gram of preparedness. The Secretary pointed out that on but with the Panama Canal appropriations added instead account of the untried new revenue laws relating to taxaof a surplus there'would be shown a deficit of $12,132,197.21. tion of inheritances and war munitions, and the uncertain- As authority existed for the issue of Panama Canal bonds, ties as to the actual expenditure that might be made was undoubtedly it was held that the act of March 4, 1909, did on account of the large program for preparedness, it was not apply, there being more than sufficient revenue to very difficult to estimate with accuracy the receipts and meet the estimated ordinary appropriations for 1911. expenditures for the fiscal year 1917 and particularly for This assumption is confirmed by the fact that the annual the fiscal year 1918. He urged upon the attention of Conreport of Secretary MacVeagh for 1909 refers to the sale of gress the necessity of passing such measures as would probonds or certificates of indebtedness to meet anticipated vide additional revenue to meet the preparedness prodeficit shown in estimates. gram. This was only a feAv months before the declaration For the year 1912 the same condition was presented, it of war. After war was declared, the Secretary of the Treasbeing estimated that the ordinary receipts would exceed ury was in constant touch with the Committee on Ways and the ordinary appropriations by approximately 849,500,000, Means of the House and Finance Committee of the Senate, but taking the Panama Canal appropriation into account advising them periodically of the needs of the Government, there would be a deficit of more than §7,000,000. A similar As a result of these advices the Congress levied taxes and condition existed for 1913. authorized issues of securities as the needs of the Govern- The estimates for 1914, sent to Congress on December 2, ment developed. 1912, were $732,556,023.03 and estimated receipts $710,- 000,000, showing an estimated deficit of $22,556,023.03, exclusive of Panama Canal appropriations. President Taft reported this deficiency in his message to the Congress Bank Holdings of United States War Obliga- December 6, 1912, and in his annual report submitted to tions and Loans Secured by Such Obligations. the Congress in December, 1912, Secretary MacVeagh In the table below is given an estimate of the made the following observation: bank holdings on June 30, 1919, of the several •'These estimates of appropriations, of course, are based upon conditions that now exist and upon the laws which classes of United States war securities, includnow prevail; and between now and the end of the fiscal ing Liberty bonds, Victory notes, and Treasury year 1914 much may occur through legislative action to certificates, also of so-called war paper, i. e., change the basis upon which they are made. There are loans carried by the banks secured by United also included in these estimates items for projected public works the payments for which will not be concluded during States war obligations. the fiscal year in question." Of the 16,304 millions of Liberty bonds out- Estimates for 1915, transmitted to Congress December 1, standing at the close of the fiscal year, national 1913, showed estimated ordinary receipts of $728,000,000 banks owned about 770 millions, while other and estimated ordinary appropriations of $714,684,675.02, member banks report a net investment of 293 the estimated surplus of ordinary receipts being $13,315,000, millions in these securities. It is estimated exclusive of Panama Canal appropriations. When the that the banks outside of the Federal Reserve Government's revenue was largely decreased by reason of system held about 400 millions of Liberty the European war, President Wilson delivered a special bonds on that date, making the total amount message to Congress on September 4, 1914, urging that of Liberty bonds held by all the banks someadditional revenue of $100,000,000 be raised through what less than 1,500 millions, or about 9 per internal taxation. cent of the total outstanding. For 1916, the estimated excess of ordinary receipts over Of the Victory notes, the amount owned by ordinary appropriations was $21,234,895.20. / national banks on June 30 is reported as 405 The Annual Kep'ort of the Secretary of the Treasury of millions; other member banks give their net December 6, 1915, p&ges 48 to 52, deals with receipts and holdings of these notes as 192 millions, while disbursements for 1916 and 1917, and recommended the the banks outside of the Federal Reserve sysmeans of obtaining the additional revenue required for tem, it is estimated, held about 250 millions of Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

October 1,1919. FEDERAL RESERVE BULLETIN". 943 these securities. Of the 3,468 millions out- Estimated amounts of Liberty bonds, Victory notes, Treasury standing at the close of the fiscal year, about certificates, and "War paper" held by the banks of the country on June 30, 1919. 847 millions, or nearly 25 per cent, are thus shown among the banks7 holdings. [In millions of dollars.] Of the 3,634 millions of Treasury certificates Liberty bonds outstanding June 30, 1919... 16,304 outstanding on June 30, it is estimated that Held byless than 50 per cent were held by the banks, National banks 770 the distribution by classes of banks being as Other member banks 293 follows: National banks report a total of about All other banks (estimated) 400 1,463 1,722 millions of United States bonds, other than Victory notes outstanding June 30, 1919 3,468 Liberty loan bonds, but including certificates Held byowned. Of this total, it is assumed, the amount National banks.... 405 of United States bonds proper, largely bonds Other member banks 192 with circulation privilege, was about 715 mil- All other banks (estimated) 250 847 lions, of which over 700 millions were held by Treasury certificates outstanding June 30, the United States Treasury to secure circula- 1919 3,634 tion and deposits. The balance of about one Held bybillion would, therefore, represent the national National banks (approximate) 1,000 Other member banks (actual).... 360 bank holdings of Treasury certificates. Like All other banks (estimated) 400 holdings of other member banks are given as 1,760 about 360 millions, while certificate holdings War paper held by— of all other banks are estimated at about 400 National banks (estimated) 1,400 Other member banks (actual) 645 millions, the total of Treasury certificates All other banks (estimated) 450 held by all banks thus being about 1,760 2,495 millions. Total 6,565 Between March 4 and June 30, 1919, the amount of war paper held by State bank and trust company members increased from about 422 to about 645 millions. On the basis of Discount Rates of the Federal Reserve Banks this increase, also of the increase in war paper During the War Period* holdings of member banks in selected cities during about the same period, the national Changes in discount rates of the Federal bank holdings of war paper on June 30 are esti- Reserve Banks affect primarily the 15 and mated at 1,400 millions. For the banks out- 90-day rates on war paper, which constitute side of the Federal Reserve system war-paper about 90 per cent of all the discounts made by holdings of about 450 millions are assumed. Federal Reserve Banks during the war period. This makes an estimated total of 2,495, or, say, In May, 1917, the Federal Reserve Board a round 2.5 billions of war paper held by all authorized a rate of 3 per cent for both member the banks of the country at the close of the banks' notes and customers' paper secured by past fiscal year. It is understood that the United States war obligations and having a amount just given includes both loans to carry maturity of not exceeding 15 days. This was war security subscribers as well as loans to the rate at which the first two series of Treascustomers for industrial and commercial pur- ury certificates were issued. At the same poses, when secured by Government war obli- time a 3i per cent rate, corresponding to the gations. What portion of the total represents interest rate on the first Liberty loan bonds, the result of war finance operations of the was adopted for 90-day paper secured by such banks and what portion the result of com- bonds. The 3 per cent rate adopted by mercial loan operations it is impossible to six banks remained in force during part of the state. year and was raised successively to 3J and Combining the totals of the investments 4 per cent. Other Federal Reserve Banks and loans above given we obtain an estimated adopted a 3J per cent rate on this class of total of approximately 6.5 billions as the paper, which rate commonly prevailed at the amount of united States war securities and close of the year. This rate allowed a margin war paper held by the banks of the country on of one-half per cent to the banks, the rate June 30, 1919. on certificates having successively been raised Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

944 FEDERAL. RESERVE BULLETIN. October 1,1919. during 1917 to 3i, 3J, and, beginning with the rate at present prevailing in all except the September 26, 1917, issue, to 4 per cent, while Kansas City and San ^Francisco districts, the interest rate on the second Liberty loan of where a 5 per cent rate is maintained. The November 15, 1917, was likewise fixed at 4 90-day rate on ordinary commercial paper, per cent. which in the beginning of 1917 ranged between In April, 1918, in accordance with the higher 4 and 4J per cent, was raised by one-half per rates fixed for Government loans, the 3J per cent cent during November and December of the rate on 15-day war paper was raised to 4 per cent year and by another one-fourth per cent by and at the same time the rate on 90-day war paper most of the banks in April, 1918. Since then was raised from 4 to 4| per cent. These rates this rate has ranged between 4f and 5 per cent. remained unchanged during the remainder of the Six-month paper rates, which ranged between year 1918 and during the present year in the New 4J and 5 per cent at the beginning of 1917, were York district. In some of the other districts raised in some districts by one-half to 1 per cent a differential of one-fourth of a per cent was and range at present between 5 and 5i per cent. adopted early in 1919 in favor of 15-day paper Rates on trade acceptances, as a rule, have secured by certificates by raising the 4 per cent been running from one-fourth to one-half per rate to.4£ per cent on 15-day paper secured by cent lower than the corresponding rates on other Government war securities. other commercial paper, except that during As regards the rates on ordinary commercial the more recent period the rate on 15-day paper paper maturing within 15 days, the New York has applied equally to trade acceptances and bank's rate has always been the same as for to commercial paper of the ordinary type. war paper of the same maturity. In other As a general rule changes in the rates on war districts the 15-day rate on ordinary com- paper have caused corresponding changes in the mercial paper during 1917 has been from rates on ordinary commercial paper, though, so J to 1 per cent higher than in New York, far as 15-day paper is concerned, four banks, ranging between 3J and 4 per cent. The viz: Boston, New York, Philadelphia, and St. raise of the 15-day rate by the New York Louis have at present a uniform 4 per cent bank to 3£ and subsequently to 4 per cent rate on all such paper, whether secured by reduced the difference between the rates on Government war obligations or not. In the 15-day commercial paper maintained in the other Federal Reserve districts a differential New York and practically all other districts of one-fourth to one-half per cent obtains at to between one-fourth and one-half per cent. present between the two classes of paper of Rates on ordinary 60-day paper, which at the shortest maturity. Rates on ordinary the beginning of 1917 stood at 4 per cent at commercial paper maturing within 90 days nearly all banks, during the last two months have been running from 1 to one-half per of the year were raised to 4J per cent, and in cent higher than the corresponding rates on April, 1918, to 4| per cent. This is the 60-day war paper. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

October 1,1919. FEDERAL RESERVE BULLETIN. 945 COURSE OF THE PRICE OF SILVER AND speculation on the other. To relieve the situ- CURRENCY CONDITIONS IN INDIA.1 ation a royal commission recommended in 1893 that the free coinage of silver in India be PRIOR TO 1914. discontinued. This measure relieved the Indian exchange India's monetary system is based upon gold. situation, and was indorsed by a later royal Its actual circulation is composed mainly of commission, reporting in 1898, which recomsilver rupees and rupee notes. In order to mended that the rate of exchange be fixed at 1 understand the present situation, it is essential shilling 4 pence per rupee, or 15 rupees per to have a brief statement of historical developpound sterling, making the par 32.44 cents per ments. The summary here presented is based rupee. This commission also recommended mainly on the Report of the Royal Commission the establishment of a gold-standard reserve, on Indian Finance and Currency of 1914. to be made up of the accumulated profits from Prior to 1893 Indian mints were open to the the coinage of rupees, this reserve to be used free coinage of silver and the exchange value for the purpose of purchasing exchange at the of the rupee, which contains 165 grains of fine fixed rate, whenever the market price would silver, was dependent upon the gold value of its show a tendency to rise above this rate, and silver content. The table below shows the thus to assure stability to the actual rate. The average annual price of an ounce of pure silver commission also recommended measures lookand the gold value of the silver in a rupee for ing toward the introduction of gold as a medium each year, 1873-1918. From the beginning of of exchange in India; for that purpose it adthe period covered in the table, a rapid decline vised that the sovereign be made legal tender in the price of silver is shown. A rupee was in India, that free coinage of gold be introduced worth on the basis of its silver content $0.48225 in India, and that no silver be coined except in 1875, but only $0.42869 in 1878. In that when the proportion of silver to gold in circulayear the Bland Act was passed in the United tion would fall below a certain rate. States, under the terms of which the Secretary In so far as its efforts to introduce gold into of the Treasury was instructed to purchase not actual circulation in India were concerned, the less than $2,000,000 and not more than commission did not achieve its purpose. Earn- $4,000,000 of silver each month. This act reings of the Indian population are so low that mained in force until July 14, 1890. The gold coins are necessarily of too high denomeffect of this act was temporarily to slacken, inations for general circulation; notes and gold but not to stop, the decline in the value of were accepted only at a discount, and the silver. Neither was the fall in the price of Indian government was forced to resume the silver stopped by the Sherman Act of 1890, coinage of silver rupees in large quantities, rewhich provided for the purchase by the Secregardless of the amount of gold in circulation. tary of the United States Treasury of 4,500,000 No further efforts were made to force gold into ounces of silver monthly. In 1893, when the circulation, and the plan for a gold mint in silver-purchase provision of this act was re- India was dropped at that time. The rate of pealed, the value of the silver in a rupee stood exchange remained at 1 shilling 4 pence, with at $0.28998, or nearly 40 per cent below the only a short interruption during the panic of average for 1873. This constant and heavy 1907-8, up to the time of the recent rise in the decline in the value of the rupee worked a price of silver. It should be mentioned that serious hardship on India, as all its payments while the Indian population does not take for foreign goods and all its large remittances kindly to gold as currency, it uses gold for orto England for pensions and interest on loans naments and for hoarding. Thus, since 1873, had to be made in depreciated currency and, a total of nearly li billions of dollars in gold therefore, considerably larger quantities of was absorbed in India, the annual absorption Indian products had to be exported in payin recent years being: 1913-14, 111 millions; ment for her imports and in settlement of her 1914-15, 58.4 millions; 1915-16, 17.5 millions; debts. This also had the effect of increasing 1916-17, 26.3 millions; and 1917-18, 49.6 taxes in India. Furthermore, the uncertainty millions. of the rate of exchange resulted in trade depression on the one hand and in a great deal of REPORT OF THE ROYAL COMMISSION OF 1914. i Sources: Report of Royal Commission on Indian Finance and Cur- A commission appointed to consider the enrency, 1914 (Cd. 7236). Statistical tables relating to banks in India, Department of Statistics, India, 1919. Also: Weekly and annual bullion tire problem of Indian currency and exchange letters of Samuel Montagu & Co., and Indian letters published from time to time in the London Economist. held hearings in 1913 and made its report early Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

946 FEDERAL RESERVE BULLETIN. October 1,1919. in 1914. This commission concluded that there ment authorities at Calcutta, Madras, and was nothing to be gained by trying to popu- Bombay. The notice states a limit which the larize gold as currency in India, that there was aggregate amount will not exceed. The secreno need of a gold mint in India, and that the tary of state does not bind himself to allot the currency best adapted to Indian needs and whole amount mentioned in the notice, and as a preferences was one consisting of silver rupees matter of policy, prior to 1914, did not accept and notes convertible for purposes of external any applications at prices lower than 1 shilling obligations into sterling at a fixed rate. The 3-ff pence per rupee for bills and 1 shilling 3ff commission indorsed the creation of the gold- pence for telegraphic transfers ("T. T.s"). standard reserve, recommended that it be con- The price charged for telegraphic transfers is tinued, that it consist largely of gold in Lon- ordinarily higher by -^ pence per rupee than don, and that it be used exclusively for the that charged for bills, but when the bank rate of purpose indicated by its name.1 the Calcutta or Bombay bank exceeds 8 per India's paper currency has been a Govern- cent, and telegraphic transfers are consequently ment monopoly since 1862, when the privilege much in demand, tenders for transfers are conof note issue was withdrawn from the presi- sidered for allotment with tenders for bills only dency banks. Notes are issued in denomina- if the former are ^ pence higher. Allotment tions of 5, 10, 50, 100, 500, 1,000, and 10,000 is made to the highest bidder and, when the rupees, and in 1910 the notes in denominations total amount tendered exceeds the amount of 100 rupees or less were made legal tender offered, allotment is made pro rata. When the throughout India, the 500, 1,000, 10,000 rupee tenders received on a Wednesday have been rates being legal tender only within the districts disposed of, the amount to be offered for where they were issued. Against the notes tender on the following Wednesday is decided the Indian government was permitted to hold upon, the main considerations being the resecurities to a maximum of 14 crores quirements of the India office and the strength (140,000,000 rupees), of which not to exceed of the demand. uIntermediate" or "special" 4 crores (40,000,000 rupees) might be held in bills and transfers can be obtained on other sterling securities, the remainder to be com- days of the week at a price fixed by the India posed of Indian or rupee securities. The com- office at not less than -^ pence higher than the mission recommended that 500 rupee notes be lowest price at which allotments have been " universalized," i. e., be made legal tender all made on the preceding Wednesday, the exact over India, that the fiduciary portion of the rate and the maximum amount of such " intercover for the notes be raised to 200,000,000 mediates" being fixed for the week each Wedrupees at once, and thereafter to an amount nesday. not to exceed the amount of notes held by the The arrangements made each Wednesday are Government in reserve treasuries plus one-third laid for approval before the next meeting of the of the net circulation, and that this portion of finance committee of the council of the secrethe reserve be eligible for investment in tem- tary of state for India, usually on the same day, porary or permanent securities, or in loans to and subsequently before the council itself. The presidency banks in India or on the London rate at which these drafts are sold to the public market, at the Government's discretion. varied in normal times from the fixed rate of The commission also recommended the con- exchange of 1 shilling 4 pence within the nartinuation of the practice of selling council row limits of the cost of shipping gold from drafts for the purpose of transferring from In- India to England and, as already mentioned, dia to London funds required for the use of the did not ordinarily fall below 1 shilling 3f-| pence secretary of state for India. This custom was per rupee for bills and 1 shilling 3f| pence for inherited by the India office from the East In- telegraphic transfers. Owing to India's nordia Co. and forms "the central feature of the mally large excess of exports over imports, the machinery by which the Indian finance and system of drafts offered a convenient and profitcurrency system is managed." The procedure able way to settle balances due from England in selling council drafts is as follows: On each to India, and these drafts are the machinery Wednesday a notice is exhibited at the Bank through which the Government regulates the of England inviting tenders, to be submitted on rate of exchange. The drafts are also used for the following Wednesday, for bills of exchange the transfer to London of excessive accumulaand telegraphic transfers on the Indian govern- tions of gold in the note currency reserve. The money so received in London is either eari A part of it had previously bsen loaned to the Indian railroads for construction purposes. marked as a portion of the Indian currency re- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

October 1,1919. FEDERAL RESERVE BULLETIN. 947 serve held with the Bank of England or used to 40 millions in 1915-16, and about 60 millions purchase silver with which to coin rupees to the following fiscal year. The gold-standard take the place in India of those issued to pay reserve, which had gone to India as a result of for the council drafts. The drafts are also government support of the exchange rate in used to effect transfers from India to London 1914, was transferred back to London in 1915. of profits from the coinage of rupees as these India's industries were very active, prices were profits accumulate in the gold-standard reserve, high, India was buying back securities from its the policy being to hold this reserve normally creditors, and investing large sums in British in London. The customary procedure in re- war loan and other securities. At the same cent years before the war was to sell council time her equipment for production was suffering drafts freely; that is to say, to sell as long as from the difficulty of obtaining railway and there was a demand and as long as it could be other material required for the distribution and met from the resources of the Government in expansion of industry. India. It must be kept in mind, however, that Silver, which had continued to decline in the underlying principle is that these drafts value until July, 1915, began to rise rapidly must be "sold for no other reason and to no after that date. A table is attached showing larger amount than is necessary to meet the re- the average price of silver and the bullion value quirements, present or prospective, of the sec- of a rupee for each month from July, 1914, to retary of state for India in London." August, 1919. From 17 cents during July, 1915, the value of the silver in a rupee rose to DEVELOPMENTS SINCE 1914. 19.9 cents by the end of that year, to 27.4 cents by the end of 1916, and to 38.5 cents on Sep- At the outbreak of the world war India was tember 30, 1917. The sharp rise in September enjoying a period of prosperity; the crops had was followed by an abrupt decline to 33.4 cents been good, and, furthermore, the war began at the end of October and a gradual decline to during the slow season in India and therefore 32.3 cents at the end of February, 1918. Since did not immediately have a great effect on her then there has been an almost continuous rise business activities. But it was not long before in the price of silver, the average for August, the effects of the war began to be felt in India. 1919, being 44.3 cents for the silver content of Both imports and exports fell off very heavily a rupee coin. This great increase in the price as the result of the shortage of cargo space, the of silver was caused in part by the increased activities of the Emden in the Bay of Bengal, demand throughout the world for the metal, and the preoccupation of European nations in part by the great demand for silver currency with their own pressing affairs. Germany had for the increased industrial and commercial been a large importer of Indian cotton, jute, activities of India and the war expenditures rice, and coconut products, and the war by pre- of the Indian government; and also by the venting exports to Germany had a depressing demand for rupees in other English dependeffect on these industries. The government encies, notably Mesopotamia, Egypt, and East came to the assistance of the business com- Africa. A great deal of hoarding of gold and munity by increasing its balances in the silver is also reported to have taken place in presidency banks.1 The depression caused by India. As a result of the rise in the price of the interference with India's foreign trade did silver and the increased trade balance in favor not last long, however. Soon the great demand of India, together with the prohibition of the for India's products by the Allies and by the export of gold from England in settlement of Orient, to which the belligerent European Indian balances, the rate of exchange for council nations were no longer able to supply goods, drafts was raised from 1 shilling 4 pence per resulted in increased activity throughout India. rupee, the rate maintained since 1893, to 1 Japan was in the market for all the cotton she shilling 5 pence on September 1, 1917; to 1 could buy, jute was in great demand, and so shilling 6 pence on April 11, 1918; later to 1 were tea, hides and skins, raw wool, and indigo. shilling 8 pence; on August 12, 1919, to 1 The excess of India's exports over her imports shilling 10 pence, and on September 10, to 2 was about 16 millions sterling in 1914-15, about shillings. In its turn, the Indian government issued a regulation by which all imports of sili There are three banks in India, known as the presidency banks, viz., ver were to be turned over to the government the Bank of Bengal, with head offices at Calcutta, and 25 branches and agencies; the Bank of Bombay, with head offices in that city, and 17 and also enacted drastic legislation against the branches and agencies; and the Bank of Madras, with head offices in breaking up or melting of rupees. During re- Madras, and 24 branches and agencies. Prior to 1862 these banks had issue privileges, while at present they are fiscal agents of the government cent weeks council drafts have been sold in and their functions are strictly limited by law. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

948 FEDERAL. RESERVE BULLETIN. October 1,1919. New York, through the New York branch of against this circulation varied in proportion, the Bank of Montreal. These sales met with as the Government was able to secure silver|to a decided success, the offerings being greatly replace the constant drain for circulation puroversubscribed at rates above the minimum poses. On March 31, 1918, immediately before price fixed. the United States intervened, the silver reserve The great scarcity of silver in India menaced stood at its lowest ebb, 107.9 million rupees, as the convertibility of the Indian currency, and against 339.4 millions at the outbreak of the failure to maintain redemption of rupee notes war. Since that time the silver reserve has in silver would have entailed most serious con- increased almost without interruption, and on sequences to public order in India and to the August 31, 1919, stood at 509.9 millions. The prosecution of the war. The United States, gold reserve stood at 275.1 million rupees on therefore, on April 23, 1918, enacted the law July 31, 1914, but fell to 138.1 millions by known as the Pittman Act, authorizing the August 31, and remained comparatively low Secretary of the Treasury to break up and melt through the remainder of 1914 and most of the for export silver dollars up to the maximum of year 1915; on December 31, 1915, the gold $350,000,000 and to arrange for the issue in reserve stood at 189 millions, and while it has place of the retired dollars of equal amounts of fluctuated considerably since that time, reach- Federal Reserve Bank notes. By the law the ing a low ebb of 114.5 millions on July 31, 1917, Secretary was instructed to purchase in the it has generally been over 150 millions, and on open market whenever obtainable at $1 per February 28, 1918, when the silver reserve was ounce an equivalent amount of silver bullion. low, reached the maximum of 289.7 million Under this act 200,000,000 ounces of silver rupees. On August 31, 1919, there were 193.5 were sold to the British Government at $1 per millions in the gold reserve. ounce of fine silver plus certain costs of trans- During 1914, 1915, and 1916 considerable portation, melting, and recoinage. Total silver portions of the gold reserve were held in Engexports from the United States to India from land, but during 1917 most of the gold was May 1, 1918, to May 16, 1919, when the breaktransferred to India, and recently the portion ing up and melting of silver was discontinued, of the gold reserve held in England has been, were $248,580,000, this total represen ting largely except for brief periods, insignificant in amount. the amount of silver shipped on British Govern- Securities held against circulation remained at ment account. A new gold coin—the mohur— 140 million rupees, the legal maximum before was minted in India, of the same weight and the war, until February, 1916, but rose above fineness as the sovereign, but of the face value this amount during that month and since then of 15 rupees, which was the par of exchange. increased with the expansion of circulation in The moliur, however, did not remain in circuaccordance with the currency commission's lation, some of the coins finding their way into recommendations. Since January 31, 1919, hoards, while the bulk of them were returned this amount has stood at 985.8 million rupees, to the treasury, where they were added to the of which 160.6 millions are invested in Indian currency reserve. and 825 millions in British securities. Gold and silver in the currency reserve constituted 81.4 NOTES IN CIRCULATION AND RESERVES. per cent of the note circulation on July 31, 1914. This percentage gradually declined as A table is attached showing; the note circulathe amount of notes increased, and on June 30, tion in India, the different classes of reserves 1917, fell as low as 34.4 per cent. Additions held against it, and the percentage of metallic both to gold and silver reserves improved the reserve from the outbreak of the war to August, reserve position after that date, and the per- 1919. A chart shows in graphic form the data centage rose to 45.6 on November 30, 1917. on notes in circulation, reserves, and price of Continued expansion in note circulation, howsilver. It will be seen that during the last five ever, together with rapid diminution of the silmonths of 1914 and during 1915 the note circuver reserve, brought the reserve ratio down to lation in India was below the figure for July 31, 31.3 per cent on May 31, 1918. Since then the 1914, this amount, 755 million rupees, not being shipments of silver from United States steadily equaled until the end of November, 1916. increased the silver reserves, and the ratio From that time the note circulation increased gradually advanced, standing on August 31 very rapidly, standing at 1,083 million rupees last at 41.6 per cent. on "December 31, 1917, at 1,477 millions on December 31, 1918, and at 1,689 millions on A royal commission is now making a new August 31, 1919. The silver reserve held investigation of Indian currency and exchange Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

October 1,1919. FEDERAL KESEKVE BULLETIN. 949 problems in the light of developments since United States equivalent of London price of silver, 1,000 1914, and the commission's report is awaited fine, and gold value of silver in a rupee, July, 1914- August, 1919—Continued. with interest by those who have followed the changes produced in the situation by the great [Monthly averages.] increase in the price of silver. On basis of sterling On basis of average United States equivalent of London price of silver per ounce, at par. c m h o a n n t g h e l . y rate of ex- 1,000 fine, and value of silver in a rupee, 1873-1918. Date. Price of Gold value Price of ; Gold value [On basis of sterling at par=$4.8665.] silver per of silver silver per ! of silver ounce. rupee. ounce. ; rupee. London London Date. si p o l r v u i e c n r e c p e o , e f r i v n s a G r i l l u u o v p e l e d e r o e f . Date. s p i o l r v u ic e n e r c p o e, e f r i v n s a G i r l l u u o v e p l e d e r o e f . A M p a r r i c l h 1915. $0. . 5 5 1 1 8 92 22 5 7 SO. .1 1 7 7 8 8 4 1 9 4 SO. . 5 5 1 1 2 2 6 2 7 7 15 ! SO. . 1 1 7 7 6 6 2 0 3 9 1 1,000 fine. 1,000 fine. May .51706 .17773 .5090258 . 174978 June .51035 .17543 .50080 .17215 July .49556 .17034 .48865 .16797 1873 SI.40291 80.48225 1896 . . SO. 73043 SO.25109 August .49973 .17178 . 48157 .16554 1874. . J 38252 .47524 1897 .65338 . 22460 September .517613 .17792 .49728 .17094 1875 L. 34306 .46168 1898 .63794 .21929 October .52441 . 18026 .503778 .173174 1876 ]L. 25853 .43261 1899 .65031 .22354 November .549856 .18901 .52751 .18133 1877 ]L. 29934 .44665 1900 .67035 .23043 December .5781152 .19872 .5607036 .192742 1878.... L. 24711 .42869 1901 ... .64426 .22147 1879 .. ]L. 21505 .41767 1902 .57076 .19620 w 1916. 1880 L. 23791 .42553 1903 .58656 .20163 January .20315 .578047 .198704 1881 L. 22410 .42078 1904 .62569 . 21508 February .511334 .17577 .578560 .198880 1882. .. L. 22770 .42202 1905 .65975 .22679 March .60496 .20795 . 59211 .20354 1883 :L. 19864 .41203 1906 .73177 .25155 April .672145 .23104 ! . 658126 .226230 1884 L. 20073 .41275 1907 .71516 .24583 May . 779886 . 762563 . 262131 1885 ]L. 15146 .39581 1908 .57827 .19878 June .680876 .23405 . 66567 .22882 1886 L. 07531 .36964 1909 .56233 19330 July .65632 .22561 . 64175 .22060 1887 1.03887 .36399 1910 .58462 .20096 August . 690403 ! .23732 .675342 .232149 1888 L.01593 .34923 1911 .58300 .20041 September . 7146868 ! . 24567 .698709 .240181 1889 . L 01093 34751 1912 66454 22844 October .70942 | . 24386 .23837 1890 .13118 .38884 1913 .65360 122468 November .748516 ! .25730 .73163 .25150 1891 1.06811 .36716 1914 .59797 20555 December .798154 .27436 1892 .94211 .32385 1915 .56099 .19284 1893 .84357 .28998 1916 .74213 .25511 1917. 1894 .68626 .23590 1917 ... .94627 32528 January .80412 .27641 .786157 . 270241 1895 .70709 .24306 1918 1.12602 .38707 February . 82721 .28435 .808306 .277855 March .79844 .27446 .77999 .26812 April , .811020 .27878 .792035 .272262 NOTE.—In 1893 the official ratiolbetween the British pound sterling May , . 83163 .28587 .81265 .27935 and the rupee was fixed at 1 pound=15 rupees. June , . 857116 .29463 .83663 .28759 July , .87913 .30220 . 860905 August .94409 .32453 . 93007 .31971 United States equivalent of London price of silver, 1,000 September 1.11965 .38487 ! 1.09401 .37613 fine, and gold value of silver in a rupee, July, 1914- October , . 97170 .33402 i . 94859 .32608 November .95557 .32847 .93304 .32073 August, 1919. December . 94329 .32425 .92104 .31661 [Monthly averages.] 1918. January .97222 .33420 .94950 February .93825 .32252 .91646 .31503 On basis of sterling On basis of average March .95795 .32929 .32164 at par. c m h o a n n t g h e l . y rate oi ex- A M p a r y il 1 1 . . 0 0 3 7 5 4 0 0 1 3 . . 3 3 5 69 5 1 7 9 8 1 1. . 0 0 4 1 9 1 4 2 2 0 . . 3 3 4 60 7 7 6 4 0 Date. June 1.07140 .36829 1.04664 .35978 July 1.07003 .36782 1.04512 .35926 Price of Gold value Price of Gold value August 1.07561 .36974 1. 05112 .36132 silver per of silver silver per of Silver September 1.08510 .37300 1.06022 .36445 ounce. rupee. ounce. rupee. October 1.08510 .37300 1.06022 .36445 November 1.07438 .36931 1.05033 .36105 1.06264 .36528 1.03883 .35710 1914. December July $0.55201 SO. 18975 $0.55408 SO. 1904.7 1919. August January 1.06181 .36499 1.03812 .35685 September .53159 .iS273 . 54573 .18759 February 1.05309 .36199 1.02955 .35391 October .50555 .17378 . 511199 .175725 March 1.05464 .36253 1.02064 .35085 November .49630 .17060 . 500337 .171991 April 1.07164 .36837 1.02420 .35207 December .50145 .17237 .50268 .17279 May 1.13527 . 39024 1.08656 .37351 June 1.18146 . 40612 1.11922 .38473 1915. July 1.18722 .40810 1.07838 .37069 January .496784 .17076 .496366 .170625 August 1.28984 .44338 1.12888 .38805 February.... .500070 .17189 .494262 .169902 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

950 FEDERAL RESERVE BULLETIN. October 1,1919. Notes in circulation in India, composition of reserve, and percentage of metallic reserve at the close of each month, July, 19H, to August, ^1919. [In thousands of rupees.] Metallic reserves. Securities Date. | ci N rc o u t l e a s t i i o n n. co S i i n lv a e n r d G an o d ld c bu o l i - nG an o d ld b c u o l i - n P a e g r e c en of t- r h e e s l e d rv i e n . • silver lion in lion in Total. circulabullion. India. England. tion. 1914. July 31.. 754,000 339,400 183,600 91,500 614,500 81.5 140,000 Aug. 31.. 657.900 379,800 61,600 76,500 517,900 78.7 140,000 Sept. 30. 605,200 349,500 39,200 76,500 465,200 76.9 140,000 Oct. 31... 607,700 327,800 63,400 76,500 467,700 77.0 140,000 Nov. 30. 611,900 306,800 88,600 76,500 471,900 77.1 140,000 Dec. 31... 608,300 298,700 93,100 76,500 468,300 77.0 140,000 1915. Jan. 31... 602,500 303,000 83,000 76,500 462,500 76.8 140,000 Feb. 28... 595,400 311,900 67,000 76,500 455,400 76.5 140,000 Mar. 31.. 616,300 323,400 76,400 76,500 476,300 77.3 140,000 Apr. 30.. 602,400 309,000 76,900 76,500 462,400 76.8 140,000 May 31... 619,900 325,900 77,500 76,500 479,900 77.4 140,000 June 30.. 664,700 370,600 77,600 76,500 524,700 79.0 140,000 Julv31... 680,600 !400,900 78,200 61,500 540,600 79.4 140,000 Aug. 31.. 664,100 399,200 63,400 61,500 524,100 79.0 140,000 Sept. 30.. 638,000 377,400 59,100 61,500 498,000 78.1 140,000 Oct. 31... 635,800 363,900 70,400 61 500 495.800 78.0 140,000 Nov. 30., 620,600 336,000 83,100 61,500 480,600 77.4 140,000 Dec. 31... 623,400 294,400 127,500 61,500 483,400 77.5 140,000 1916. Jan. 31... 609,300 260,200 127,400 81,700 469,300 77.0 140,000 Feb. 29... 640,000 240,000 122,400 119,200 481,600 75.3 158,400 Mar. 31... 672,200 230,600 122,400 119,200 472,200 70.2 200,000 Apr. 30... 649,400 195,000 122,400 119,200 436,600 67.2 212,800 May 31... 657,900 187,000 ! 121,100 119,200 427,300 65.0 230,600 June 30.. 711,300 236,400 125,100 119,200 480,700 63.4 230,600 July 31... 754,700 282,000 122,900 119,200 524,100 69.4 230,600 Aug. 31.. 740,100 273,700 116,600 119,200 509,500 68.8 230,600 Sept. 30., 715,300 255,600 109,900 119,200 484,700 67.8 230 600 Oct. 31.., 733,000 256,300 125,500 119,200 501,000 68.4 232 000 Nov. 30. 755,300 199,600 123,700 119,200 442,500 58.6 312,800 Dec. 31... 821^500 173,600 119,100 119^200 411,900 50.1 409,600 i 1917. Jan. 31... 842,200 173,500 125,600 104,200 403,300 47.9 438.900 Feb. 28.. 866,200 182,100 121,600 89,200 392,900 45.4 473,300 Mar. 31.. 863,800 192,700 120,000 66,700 379,400 44.0 484,400 Apr. 30.. 827,200 153,700 113,900 51,700 319,300 38.6 507 900 May 31... 883,100 155,300 99,300 51,700 306,300 34.6 576,800 June 30.. 932,900 202,400 70,700 48,000 321,100 34.4 611 800 July 31.. 993,100 263,800 70 300 44 200 378,300 38.1 614,800 Aug. 31., 1,051 500 290,000 j 121,200 25.500 436,700 41.5 614 800 Sept. 30. 1,084,300 293,700 159 500 16', 400 469,600 43.3 614 800 Oct. 31.. 1,147,700 294,600 219,000 I 19,300 532,900 46.4 614,800 Nov. 30. 1,129 300 244,900 246,500 ! 23,100 514,500 45.6 614 800 Dec. 31.. 1,083,100 |190 500 267,300 | 10,500 468,300 43.2 614,800 1918. Jan. 31... 1,048,200 151,000 i272,000 10,400 433,400 41.3 614,800 Feb. 28... 1,034,600 130,100 I283,000 6,700 419,800 40.6 614,800 Mar. 31... 997,900 107,900 j268,500 6 700 383,100 38.4 614,800 Apr. 30.. 1,059,600 137,200 !226,000 4,500 367,700 34.7 691 900 May 31... 1,115,300 155,600 191,100 , 2,700 349,400 31.3 765,900 June 30.. 1,147,900 149,500 210,000 j 4,500 364,000 31.7 783,900 July 30... 1,214,100 184,200 202,100 1 200 385,500 31.7 826,600 Aug. 31. 1,314,100 249,600 203,300 1,200 454,100 34.5 860,000 Sept. 30. 1,343,800 278,800 203,800 1 200 483,800 36.0 860,000 Oct. 31.. 1,364,300 299,100 204 000 1 200 ; 504,300 37.0 860,000 Nov. 30. 1,407,600 341,900 204,500 1,200 547,600 38.8 860,000 Dec. 31.. 1,477,900 321,300 196,800 1 200 519,300 35.1 951,600 1919. ! Jan. 31.. 1,497,400 ;321,200 189,200 I 1,200 511,600 34.2 985.800 Feb. 28.. 1,514,800 346,500 181,300 ' 1,200 529,000 35.0 985;800 Mar. 31.. 1,534,600 I373,900 173,700 1,200 I 548,800 35.7 985,800 Apr. 30.. 1,537,200 j375,900 145,500 30,000 ! 551,400 35.8 985,800 May 31.. 1,551,800 389,900 161 100 15 000 566,000 36.5 985,800 June 30. 1,627 600 465,000 176,800 641 800 39.4 985,800 July 31.. 1,671,100 494 000 191,300 i 685,300 41.0 985,800 Aug. 31. 1,689,200 i509,900 192,600 ! 900 703,400 41.6 985,800 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

IO NOTE CIRCULATION, METALLIC AND OTHER RESERVES, ! ALSO PRICE OF SILVER PER OUNCE, IN INDIA, 1914- -1919. I CD HHg Stiver Reserve SecartUes held in Reserve HH O IHH Gol&Jteserv& JotalJVoteCirculation,: WMh Jhicc of Silver ~o~o—o-o- mm® i W %nmm m\tm^%mwm h g ! s ofc £ %Hvm%!k m ^.% H^ 1 !-> ^1^^ ^ V£S\ b5 * 1 i^^ ? ^ 5 x P S l ^ - M . 1914 1916 IQ1P 1918 1919 CO Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

952 FEDERAL RESERVE BULLETIN. October 1,1919. EXPORTS FROM THE UNITED STATES was 4,897,600 short tons, of which more than BEFORE AND AFTER THE OUTBREAK OF 50 per cent undoubtedly belong to the group THE WAR. designated in the export returns as " manufactures ready for consumption." Navy ship- A comparison of our export trade for the five ments for the period May, 1917, to December, years since the beginning of the European war, 1918, inclusive, are given as 1,090,724 net tons, and particularly the period following our of which only 79,245 short tons are reported entrance into the war, with conditions in the under the caption " provisions," while the five years preceding the breaking out of the remainder constitute undoubtedly manufac- European war, is herewith presented. rured articles. For the fiscal year 1919 the In the attached statement there are given for share of manufactures ready for consumption each fiscal year separately and for each of the in the total exports shows a decline from 37.43 five-year periods combined the amounts and to 33.71 per cent, though the total value of percentages of the large groups of articles of these exports, because of the higher price domestic manufacture exported during the averages, was about $200,000,000 larger than the period 1910 to 1919, together with the total year before, the decline in percentage being due value of all exports. to the great increase in food exports. Our exports of domestic merchandise for the It is seen that the group of crude foodstuffs years 1910 to 1914, inclusive, amounted to shows the largest gain during 1915, the first $10,652,143,000, or an annual average of year of the war, wrhen the share of this group in $2,130,429,000. For the five years 1915 to the total domestic exports jumped from 5.9 to 1919, inclusive, our domestic exports amounted 18.66 per cent. The group of prepared foodto $26,128,184,000 (an annual average of stuffs shows a continuous increase since the $5,225,637,000), of which $19,139,828,000 rep- beginning of the war, though its relative imresents export of domestic merchandise for the portance in the total domestic exports declined years 1917, 1918, and 1919, and $7,074,012,000 for the fiscal years 1916 and 1917. In 1918 the domestic exports for the last fiscal year 1919. percentage of this group was 19.76 as against Our average annual domestic exports for the five 13.84 for the five-year period preceding the years from the beginning of the war exceeded our war. For 1919 both groups of foodstuffs show average in the earlier period, 1910 to 1914, by further large increases, their aggregate percent- $3,095,208,000, or 145.3 per cent. For the age to total exports exceeding 35 per cent, comthree-year period since we entered the war, pared with about 20 per cent for the five years the amount by which exports exceed those before the war. which were normal before the war, is $4,249,- The only group that showed an absolute loss 514,000, or 199.5 per cent. For the last fiscal in exports for the early years of the war were year 1919, the excess is $4,943,583,000, or crude materials, largely because of the decline 238.2 per cent. in raw cotton exports from 610 in 1914 to about Of equal significance with the increase of the 375 millions in 1915 and 1916. The loss in relatotals of our export trade in the last five years tive importance of this group in the total export are figures indicating changes in its composition. movement is seen from a comparison of the The largest relative increases in exports are average percentage for the five years preceding shown for the two groups of foodstuffs, pre- the war—33.1 per cent, with the percentage pared and unprepared. Manufactures ready for the war period, 14.89 per cent. for consumption show the largest absolute inc^fease. As regards the latter group the EXPORTS BY COUNTRIES. largest percentages of the total exports are shown for the fiscal years 1916 and 1917, when Additional light upon the changes in the curthe shipments of arms and munitions for the use rents of our foreign trade is thrown by the of the Allies were at their height. The decline table showing distribution of our total exports during the following year does not disclose the by countries and groups of countries in each true development oi affairs, since these figures year during the 10-year period 1910-1919, and are exclusive of foreign shipments for the use of for the two 5-year periods 1910-1914 and our own Army and Navy. Some idea of the 1915-1919. % volume of the latter shipments may be had from In the table the first group of countries comthe information given on pages 753-754 of the prises those European nations which formed 1918 United States Statistical Abstract. It ap- the alliance against the central powers, i. e., pears that the aggregate weight of the Army ship- Great Britain, France, Belgium, Italy, and Rusments for the period June 1917, to October, 1918, sia. For the five years before the war these Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

October 1, 1919. .FEDERAL RESERVE BULLETIN. 953 countries are shown to have taken an average are stated as 3,337,229,000, or slightly below of about 849 millions a year, or about 40 per 50 per cent—or much below the prewar ratio of cent of a total yearly average of 2,165.8 mil- about 70 per cent. The explanation* of the lions exported during these years. During the apparent relative fall in copper exports is to be war years exports to the allied countries of found in the fact that the official figures of Europe show a considerable increase, aver- copper exports are exclusive of the very conaging for the 1915-1919 war period 3,111.8 siderable amounts used by American manufacmillions, or 58.6 per cent of an average of turers engaged in the production of shells for 5, 307.4 exported to all countries during these the use of the allied armies, the exports of which five years. As against an increase of 267 per are returned under general caption "explocent in our exports consigned during the period sives." 1915-1919 to the allied countries in Europe For some items, such as corn and corn meal, over like exports consigned during the preced- wheat and flour, cotton, coal, and coke, the ing live-year period, exports during the war changes in the quantities and relative shares period to the rest of the world increased but exported arc shown in the attached table, but 67 per cent, which is probably less than the it is apparent that the percentages calculated, average rise in the price level, in other words, especially in the case of corn, a large proportion the large increase in exports shown for the war of which is fed to live stock and exported in the period was caused apparently altogether by the form of meat products and lard, are not to any larger exports to the allied countries in Europe; extent indicative of the total percentages of exports to the rest of the world were probably our national output that is sent out of the less in volume than before the war. country. The largo increases in exports to allied Europe are due in the first place to the large . QUANTITIES AND VALUES OF EXPO11TS. shipments of explosives, which in 1917 reached With the view of getting some idea as to a total in excess of §800,000,000, of which about what portion of the large increase in our exports 90 per cent was consigned, to belligerent Europe since the beginning of the great war was due (as against negligible amounts shipped before to increase in quantity and what portion to the war), and the considerable increases in the the increase in value of the articles shipped, the shipments of breadstuffs (mainly oats, wheat, attached table has been compiled from the and wheat flour) and of meat products (largely original tables of foreign commerce for the bacon, hams, and lard for the use of the warring period 1910-1919 issued by the Department of armies). "Under the general head of "Iron and Commerce. steel" greatly increased exports to the allied In the first column are given average 1910countries are shown principal!}' for steam and 1914 values for certain leading export items, for other engines, metal-working machinery, steel which the Department of Commerce shows both rails, tin plates (of which considerable quanquantities and values, the aggregate average tities went even to the United Kingdom), tools, value of these exports for the live-year period barbed and other wire, etc., most of which, itpreceding the war constituting 6Q.5 per cent of is safe to say, were used as munitions of war. the average total domestic exports for that period. Unit values for the items were then SHARE OF DOMESTIC PRODUCTS EXPORTED. calculated and these unit values applied to the Comparisons between quantities of different actual yearly quantities of each, of the selected commodities produced in the United States and items exported during each fiscal year 1914 to quantities exported are possible only for a few 1919. In this manner yearly totals of the items staple articles, such as breadstuffs, cotton, coal were calculated for each of the war years which and coke, and the like. In most cases neither are substantially lower than those shown in the the quantities or values of the domestic output official records. are known, while exports leave the country in It is seen that if the price factor is eliminated the shape of partly or fully prepared manufac- in the crude manner described above, the adtures, rendering meaningless comparisons of justed figures show, instead of a steady increase exports with the figures of the output of the in exports, an index, on the basis of the 1910respective raw materials. Thus, for example, 1914 average as 100, of 126 for the fiscal year the Geological Survey gives the total copper 1915, of 121 for the following year, of 123 for production for the calendar years 1915 to 1918 the fiscal year 1917, of only 109 for the fiscal as 7,110,516,000 pounds, while the exports of year 1918, and finally of 135 for the year ending unrefined and refined copper for the same period June 30, 1919. As explained above, the f6reign 139895—19 4 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

954 FEDERAL RESERVE BULLETIN. October 1, 1919. trade figures for the fiscal years 1918 and 1919 EXPORTS AND LOANS TO THE ALLIES. by no means disclose the total volume or value of our foreign shipments, since they are exclu- A table is also presented showing for the sive of foreign shipments for the use of the period beginning with our entry into the Euro- American Army and Navy. As compared with pean War, advances by the United States domestic exports for 1910-1914 like exports for Treasury to each of the Allies, month by the five war years 1914-1919 when adjusted to month, together with exports to each respective a prewar basis show an increase of about 23 per country. For the'entire period covered, April, cent, as against 97 per cent, if no adjustment 1917, to June, 1919, the aggregate value of of values is made. exports from the United. States to allied coun- It is but proper to add that as the result of tries in Europe was 8,623.8 millions, while the the changed character of our European ex- advances granted to these countries during the ports the percentages of the aggregate values of same period totaled 9,092.2 millions. In the the selected articles to the total values of case of England, Belgium, and Russia the value domestic exports for the fiscal years 1916, 1917, of exports exceeded the aggregate advances, and 1918 are considerably below the average of while in the case of France and Italy the ad- 60.4 \)Gr cent shown for the five-year period vances were greater than the value of exports. preceding the war. it would clearly not be The figures show conclusively that exports safe to assume that the above percentages are from the United States to European allies indicative of the growth in volume of our total since America's entry into the war were made exports, but they afford sufficient proof that practically on the basis of credits extended by by far the larger portion of the extraordinary the United States Treasury to the allied growth of our exports during the war period is powers. the result of a raise in valuation rather than of an increase in volume. Domestic merchandise exported from the United States, 1910-1919. (In thousands of dollars; i. c., 000 omitted.) Cru do materials Foodstuffs in Foodstuffs Manufactures for Manufactures lor use in man- crude condition partly or wholly further use in ready for Mis ce 11 ane ous. ufacturing. and food animals. prepared. manufacturing. consumption. Total Per Per Per Per Per- Per exports, cent of cent of cent of cent of cent of cent of value. Value. total Value. total Value. total Value. total "\ alue. total Value. total ex- ex- ex- ex- ex- exports. ports. ports. ports. ports. ports. Year ended June 30— 1910 565,935 33.1.0 109,828 6.42 259,260 I 15.16 267,766 15.66 499,215 29.19 8,080 0.47 1,710,084 1911 713,018 35.41 103,402 5.13 2S2.017 1 14.01 309.152 15.35 598,368 29.72 7,593 .38 2,013,549 1912 723,009 33.31 99', 899 4.60 318; 838 1 14.69 348,150 16.04 672,268 30.98 8,156 .38 2,170,320 1913 731,759 30.13 181.907 7.49 321,204 i 13.23 408,807 16.83 776,297 31.97 8,532 .35 2,428,506 1914 792,716 3.1.03 137;495 5.90 293,218 , 12.59 374,224 16.06 72.1,90S 31.11 7,122 .31 2,329,684 Total, 1910-1911.3,520,437 33.10 632,531 | 5.94 1,474,537 | 13.84 1.708,099 16.04 3,271.056 30.71 39,483 .37 10,652,143 Yearly average 705,287 126,506 ! 294,908 i '341,620 654;211 7,896 ! 2,130,429 Year ended June 30— 1015 510,456 18.80 506,993 i 18.66 454,575 16.74 355,862 13.10 807,460 29.73 80,827 2.97 2,716,178 1910 535,952 12.55 380,638 ! 8.91 599;059 14.02 657,923 15.40 1.998,298 46.77 100,307 2.35 4,272,178 1917 731,990 11.76 531,806 | 8.54 737,795 11.85 1,191,263 19.13 2,912;577 47.25 91.672 1.47 6,227,164 1918 897,324 15.37 374,978 j 6.42 1,153,702 19.76 1,201,439 20.58 2,185,420 37.43 25', 788 .44 5,838,652 1919 1,215] 901 17.19 719,716 ! 10.17 1,785,180 25.24 952,776 13.47 2,381,801 33.71 15,578 .22 7,074,012 Total, 1915-1919.3,891,083 14.89 ,2,514.191 1 9.62 -1,730,311 18.11 4,359,263 16.69 10,318,562 39.49 :314,172 1.20 26,128,184 Yearly average 778,337 ! 0O2;838 ! 916,062 871,853 2,063,712 i 62,834 5,225,637 . Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

October 1, 1919." FEDERAL RESERVE BULLETIN. 955 Total (foreign and domestic?) exports by geographic divisions and leading countries. [In thousands of dollars; i. c, 000 omitted.] Destination. 1910 19.il 1913 1914 19 T .1 o 0- t 1 a 9 l, 1.4 1917 1918 1919 19 T 1 o 5- t 1 a 9 l, 19 ALLIED "NATIONS. | = United Kingdom 505.553 576.6N 564,372 597.14S 594.272 2,837,960 911,795 1,526,685'2.046.81.3 1L, 995, S63:2,147,412j 8,628,568 Franco '1 117', 627 135;272 135,389 146', I 159J8I9J 694,207 309". 397 G28;852!l!01l'.667 883,735' 976,6971 3,870,348 Italy 53,467 60,581 65,2611 76,285, 74,235! 329,829 184', 820 209'. 2461 36()! 608 4A 7*77*7, 8O9/W9V 4A9i\6t*, 117*75" 1"I, 7^87G8C, 7*47 A8 O Belgium 4i; 117 45,017 oi; 388! 66.845! 61,220j 205; 587 2O'.662i 2l',848| 37; 368 95,391 322,941 498,210 Russia (in Europe) 16,790 23,524 2S1J.,, 5O1L'6J,! Z2U5, ,3O0lli1 ' •iVfKtCiV] 11111, 7,A2O8O3 37; 474j 178,695 428,688 116,705 11,390 772,952 Total allied nations... 734. o?A 841,008 837,9201 91.1,743 91.9,635: 4,244,866 .1,524.148 2,025.326 3.885,1A4 3,569,593 3,954,615| 15,558.826 AH other Europe 401,301 467,208 503,807; 567,332 566,864. 2,506,032 ' 147; 287 373; 979: '439,309 162,581 680,202! 2, WS, 418 Total Europe 1,135,9.1.51,308,276 , 341,733'!., 479,075; 1,480,4991 6,751,498 1,971,4352,999,305 4,324,513 3,732,174 4,634,817,17,662,244 AMERICA. ! Canada 215,990 209,806 329,257 415,450- 344,7! 71 1,575,220 300,687 468,785: 787.177 778,490 81.3.723j 3,148,862 Latin America 242,124 273,525 290.142 323,7761 282', ()70i 1,41.7,637 251.470 411,194: 581,955 725,060 810.695! 2,7801374 All other America 20,053 22,623 23; 7-49 26,398; 117,758 24; 243 33; 2211 54,106 47,368 68,416' 227,354 Total America 478,767! 565,954 649,118; 703.50!.; 653, >.85; 3,110,615 576.400 913,200; 1,423,238 1,550,918 1,692,834 6.156,590 ASIA. Jaoan I 21,959 36,72!. 53.4' 57,742 51,206 221,106! 41,518 74,471 130,427 267,641 326 462 840.519 China '• Its', 321. 19,288 2i; 361 21.; 327 24,099 105,996! 16,402 25,331 37,196 43,477 992i 205; 198 British East Iudies ! 9,495 11,938 18.7 ' 15,109 15,625 70,965- 15,981 24.697 37,108 52,293 64,2731 194,352 Allother Asia... I 13,087 17,475 2(V 824! 20;878 21,895 94, ISC 40,569 154; 312| 175.519 84,018 1.30.198; 584,616 Total Asia j 60,802 85,122 117,401: 115,050; 113,4251 492,226 114.470 278,611i 380,250 447,429 603.925! 1,824,685 Africa 18,551. 23,607 2~4 ,0-131' o2n9', 0nu8n9!| 2077^ n90a2o!i 123'. 192' 28;519 43,591.! 52', 733 54,299 85!157 204.299 Oceania 50,890 66,061 71,937j 79,103! 83,568. 351.; 55P; 77,765 98,776j 109,314 134,891 208!351 629'. 097 Total exports ;.l, 744,985 2,049,320 2,204,322:2,4S5.88 li2,304,579: L0, ,090; 2,~768,5S9 "333^483.6,290,0485,919,711 7,225,084! 26,536,915 1 1! Production and exports of selected (articles: 1910-1919. Article and period. Production. Exports. • e P x er p w o - r n t i e a d iu . Article and period. Production. Exports. P e e x r p c o e r n t t e a d g . e Corn, and corn meal: Bushels. Bushels. Cot ion: oOO-pound bales. jOQ-pouwd half ft. 1910-1914 13,701.858,000 207,040.273 1. 50 1910-1914 65.100,173 44,054.287 07.60 1915-1919 13; 882'. 571,000 229,412', 034 1. 05 1915-1919 Oi'. 779.055 31,015;285 51.17 1915 2,072,804,000 50.668; 303 1.90 1915 . 10; 134,930 8,931.253 do. 35 1916 2;994;793,000 39; 890,928 1.33 1916 11.191,820 0,405'. 993 57. 24 1917 2,500,927,000 00,753.294 2.60 I 1917 li; 449.930 5,903;682 52. 08 1918 3', 005,233,000 49.073; 203 1. 00 1918 11,302', 375 4,5.87,000 40. 58 1919 2,582,814,000 23; 020,810 . 89 1919 11,700,000 5,727,857 48.95 Wheat and (lour: "Bituminous coal and cola1: Tons. Torts. 1910-1911 3,487,295,000 524,835,308 15.05 1910-1914 1.902.918,872 75.151,633 3. 95 1915-1919 4,106,891,000 1,200,584; 107 29.23 1915-1919 2'. 293', 3-18.893 99;010.831 4.34 1915 891,017,000 '332,404,976 37.31 1915 '377', 414'. 259 15,310;705 4.06 1916 1,025.801,000 213,117,020 23. 70 1916 395'. 200; 380 20,214,281 5.11 1917 030', 318,000 203', 573,928 31.99 1917 448J 078'. 288 21,289; 941 4.75 1918 030;055,000 133;990; 150 21.05 1918 492.070;110 23,057,901 4.68 1919 917', 100,000 287.438,087 31.34 1919 579; 385; 820 19,731,943 3.41 Xo n-;.—jVigu oi: production relate to the calendar year preceding the yearly period indicated; figures of exports relate to the year ending Juno 30. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

956 FEDERAL RESERVE BULLETIN. October 1, 1919. Domestic exports of selected articles from the United Slates, 1910-1914 and 1915-1919, ivith adjustment for increase in prices. [In thousands of dollars; i. e., 000 omitted.] Article. A a v v n a e n l r u u a e a g , l e Values computed on the basis of 1910-14 average prices. c A o a v m v n a e n p l r u u u a e a t g , e l e d A a a v v n c a e n t l r u u u a a e a g l , l e 1910-14. 1915 1916 1917 1918 1919 1915-19. 1915-19. BreadstuiTs: Barley 5,073 17,123 17,583 10,484 16,822 13,093 15,021 25,443 Corn 2.5,231 30,735 24,077 40,774 25,829 10,513 26,386 48,926 Oats 3,345 38,724 38,368 35,578 42.335 38,544 38,710 65,222 Wheat 55,063 251,854 168,076 145,336 33;095 173,226 154,317 270,522 Wheat Hour 53,127. 77,517 74.346 57,207 104,805 115,870 85,949 157,666 live 598' 8,782 10.172 9,282 8,393 19,278 11,181 25,853 Cattle 7,212 451 1,752 1,102 1,499 3,485 1,658 1,474 Coal: Anthracite 18,183 18,962 19,972 23,870 24,936 22,073 21,963 25,258 Bituminous 34,455 36,177 47,063 49,030 52,841 45,562 46,135 59,505 Copper: Pigs, ingots, bars, plates, and old 114,880 96,156 101,011 145,010 132,297 78,082 110,511 190,081 Cotton: Upland. 549,733 548,382 384,059 384,657 289,025 340,376 389,300 563,678 Cloth, bleached 2,590 4,065 5,852 7,770 11,047 7,763 7,299 J3.382 Cloth, unbleached 13,488 10,868 12,170 10,831 6,811 6,713 9,479 16,608 Iron and steel: Wire, barbed and other 9,823 14,471 30,359 26,875 17,470 18,931 21,621 37,818 Cut nails , 342 112 188 196 221 148 173 342 Wire nails and spikes , 2,230 2,609 6,054 5,866 5,124 4,417 4,814 9,043 Locomotives , 4,119 2.555 8,116 14,280 14,101 8,955 9,602 19,222 Steel rails 11,549 4; 688 15,763 17,404 12,599 18,225 13,736 21,606 Leather- Sole 8,568 16,389 17,787 20,41.6 5.191 18,915 15,739 27,327 Boots and shoes 15,788 22,015 35,977 28,369 20', 749 29,712 28,564 38,786 Lumber: Boards,planks,deals,scantlings,clc 50,687 25,901 26,859 23,778 24,372 24,600 25^ 102 35,327 Meat and dairy products: Bacon '. 23,205 44,033 73.636 84,728 103,542 157,422 92,672 168,673 Lard 52,098 52.309 46', 971 48,925 43,176 79,814 54,239 97,144 Hams and shoulders 21, 787 26', 685 36,969 34,932 54,964 87.488 48,208 86,440 Beef, fresh 3,100 , 17,896 24,277 20,704 38,853 34', 882 27,322 44,700 Beef, canned 1,111 8,879 5,995 7,969 11.486 12,802 9,426 22,543 Butter 1,013 | " 2,335 3,196 6,360 4,203 7,996 4,818 7,486 Cheese 696 i 7,862 6,304 9,379 6,291 2,669 6,501 9,530 Condensed milk 1,277 3,016 12,926 20,990 42,829 59,028 27,758 4.1,787 Oils: Cottonseed 18,119 21,331 17,856 10,64.7 6,752 11,974 13,712 23,908 Mineral, refined 113,436 138,368 155,021 174,799 169,454 160,989 159,726 227,370 Miscellaneous: Sugar, refined 2,968 23,058 68,466 52,454 24,212 46,866 43,011 60,486 Tobacco, leaf 44,686 4.0,020 50,194 46,740 33,210 71,910 48,415 83,371 Fertilizer 10,735 2,987 3,536 3,46J 2,097 2,887 2,994 6,288 Turpentine 9,302 4,921 4,841 4,598 2,649 4,193 4,240 4,379 Total 1,287,617 1,622,236 j 1,555,792 1,584,801 1,399,230 ! 1,739,401 1,580,308 2,537,194 Index number.. 100 125.9 ] 120.8 123.1 108.6 I 135.1 122.7 197.0 Annual Annual average 1915 1916 1917 1918 1919 average 1910-1914 1915-1919 Total value of exports of articles listed above $1,287,617 81,603,866 SI, 778,140 82,430,419 82,871,684 $3,995,863 S2,537, .1.94 Total value of all expports §2,130.429 $2,716,178 §4,272,178 88,227,164 §55,838,652 87,074,012 85,225,637 Percentage of aggregatte value of articles listed to total 60.4 59.0 41.6 39.1 49.2 56.5 48.6 exports. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

October 1, 1919. FEDERAL RESERVE BULLETIN. 957 Advances to the European allies and exports to the respective countries, April, 1917, to June 30, 1919. [In millions of dollars; i.e., 000,000 omitted.] All other United Kingdom.. France. Italy. Belgium. liussia. European Total allies.* exports Total from advances United Ad- Ad- Ad- Ad- Ad- Ad- to allies States U v T S f a r t r n a o n e i t m a c t e e s e s d - s E U S f x r t n p o a i t o m t e e r s d t . s v U T S f a n t r r n a o e i c t m t a e e e s s d s - E U S f x t r n a p o i t o m t e e r s d t . s U T S v fr n t r a o a e i n l m t a e c e s s e d - s E U S f x t r n a p o i t o m t e e r s d t . s v U S T f a n r t r n a o e i c t t m a e e e s s d s -S U p f t I r n o a o m i t r m t e t - e s s d . U v T S f a l n r r n a o e i t c a t m e e e s s d - s S U p f t E r n o a o x i t r m t e - t e s s d . v U T S f a n t r r n a e o i c t t a m c e e s d s s - ! l i U S p f t E n r a o o x i t r t m e - t e s s d . Euro in pe. c t E o o u u a i r n n l o l tr i p e i e e d . s ury. ury. ury. ury. ury. ury. 1917 April. 200 173.2 95.7 29.0 0.8 34.4 200.0 333.1 May.. 200 ITS. 6 100 89.8 33.7 7.5 24.4 1.6 407.5 328.1 Jurie.. 160 160. 7 110 91.9 41.0 7.5 34.6 2.2 277.5 333.8 Total.. 580 512.5 210 280.4 .100 103.7 15.0 12.0 93.4 3.8 885.0 995.0 July '210 J20.8 160 61.2 30 20.4 15.6 452.5 August 235 176. -1 160 52.1 30 '10.1 9.5 o.o 52.5 34.5 1 488.0 308.7 September.. 185 131.1 160 76.4 30 34.0 10.5 4.7 15.0 40.2 .5 401.0 286.4 October 235 182.6 330 7-1.6 65 52.4 12.0 6.4 42.2 32.8 1.5 .7 485.7 349.5 November.. 21 o 150.2 150 62.3 40 48.6 8.9 14.9 33.0 2.1.3 .1 446.9 300-4". December.. 220 181.5 1(50 73.8 105 46.1 12.0 1.7 1.1 497.0 is 15.0. 1918. January.. r 250 167.1 125 106.0 50 41.9 9.0 3.2 1.2 i 435.2 325.9 February | ISO 151.3 60 55.4 20 38.2 8.0 260.0 252.9 March...' i 2L0 208.1 90 81.2 10 36.4 2.5 12.9 j 312.5 338. (1 April ! 160 173.5 95 78.5 40 38.8 2.5 4.1 i i 298.5 295.7 Hay. 245 176.6 125 92.6 30 44.2 13.0 9.4 4] 4.0 323.3. June. 170 172.0 30 70.5 30 36.6 11.7 1-4 I 243.1 i 288.2- Total. 2,515 ! 1,991,2 1, -145 814.6 ! 480 99.1 '. 90.5 I 187.7 152.9 j 7.6 j 3.0 4,734.4 j 3,602.9 July 90 160.5 72.0 120 38.3 26.9 26.3 i .2 1.2 1.5 343.1 298.8 August 225 .166.3 20 87.8 30 36.4 3.0 10.9 6.3 .2 278.2 307.7 September.. 207 187. -1 25 84.6 45 46.7 5.2 8.4 2.3 "i.T 282.2 330.8 October.... 89 149.0 165 81.8 226 43.0 17.9 25.6 .3 1.2 499.1 299.7 November.. 110 164.2 40 51.3 90 42.6 18.4 13.5 .1 5.6 "".4 264.0 275.1 December.. 186 185.6 67.3 85 49.5 31.5 19.1 4.1 388.9 326.2 1919. January., 50 176.5 91.1 66.3 120 50.7 24.4 22.1 4.9 4.8 3.1 290.3 323.6 'February. 165.9 20 93.0 79 38.2 30.9 28.0 .5 15.5 3.2 145.4 328.8 March..1. 60 132.3 220 91.2 88.5 37.0 20.6 38.0 4.6 18.3 5. 7 407.4 308.8 April 118 191.0 135 110. 1 40 35.8 13.0 59.3 9.8 18.5 2.7 324.5 408.7 Hay 60 173.9 55 57.4 42 37.0 21.0 35.8 4.1 16.9 3.1 194.9 311.3 Jmic 294.8 25 123.3 10 42.0 8.8 36.3 15.4 4.0 4.6 54.8 506.4 Total | 1,202 2,147.4 087.5 979.1 975.5 497.2 22.1.6 323.3 52.6 86.2 26.3 3,472.8 4,025.9 APIT ULATION. Total, April-June, 1917 560 512.5 280.4 100.0 103.7 15.0 1.2 93.4 885.0 995.0 Fiscal year ending June, 1918. .,.,.......,.. 2,515 1,994.2 884.6 480.0 477.7 99.1 90.5 187.7 152.9 7.6 3.0 4,734.4 3,602.9 Fiscal year ending .June, :j 1191991 9 : . , , . . , : . .- 1,202 2,147.4 979.1 975.5 497.2 221.6 323.3 ,,,.... 52.6 86.2 26.3 3,472.8 4,025.9 Total i 4/277 ,4,654.1 1,078.6 335.7 415.0 | 187.7 i 298.9 93.8 33.1 9,092.2 8,623.8 1 Serbia,. ^?5Qlip-SJoya\aa, Roumania, Liberia-, Greece. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

958 FEDERAL RESERVE BULLETIN. October 1, 1019. Certificates of Indebtedness. sible to say definitely when semimonthly issues of loan certificates will be resumed nor upon what terms they will The Secretary of the Treasury, on September be issued; but such issues will certainly not be resumed before October 15, and the minimum amount offered 8, 1919, addressed the following letter to all should not exceed §250,000,000. In view of the important banks and trust companies in the United States: fact that now for the first time in over a year certificates (of Series T 9, maturing Mar. 15) are offered at a lower rate SEPTEMBER 8, 1919. than 4J per cent, I deem it proper to say that, if hereafter DEA.it SIR: The third semimonthly issue of Treasury certificates maturing on or before'March 15, 1920, should certineates of indebtedness, Series C 1920, in pursuance of be issued bearing interest at a higher rate than 4) per cent, the program outlined in my letter of July 25, 1919, was, in certificates of Series T 9 will be accepted at par with an accordance with the announcement made on August 25, adjustment of accrued interest in payment for certificates 1919, offered without asking the ban king institutions of the of such series which may be subscribed for and allotted. country to subscribe for any specified quota. The Treas- I hope that each and every banking institution in the ury felt confident that these certificates could be sold in United States will not only subscribe liberally for one or amounts more than sufficient to meet the reduced needs of both issues of the certificates now offered but also will use the Government without assigning the usual quota to indi- its best endeavors to procure the widest possible redisvidual banking institutions. This confidence was amply tribution of such certificates among investors. The cerjustified by the event. The certificates of Series G 1920 tificates, although acceptable in payment of income and were dated September 2, and subscriptions closed on Sep- profits taxes payable at maturity, are, as you know, paytember 3, the following day. The aggregate amount of able in cash when they matnre"and should make a wide certificates of this series subscribed for and allotted was appeal to investors generally because of their valuable 8578.841^500, a sum greater by about 840,000,000 than the exemptions from taxation and attractive maturities. The amount subscribed for either of the two preceding issues, success of these issues will bean important advance in the each of which had definite quota assignments and remained process of financing the war debt in such a way as to avoid open a week after the date of issue. This aggregate was in the necessity for great refunding operations, by spreading excess of the immediate requirements of the Treasury, but maturities and meeting them, so far as may be, out of tax allotment was nevertheless made in full upon all sub- receipts. Incorporated banks and trust companies which scriptions made on the date of issue and the day following, are not qualified depositaries are urged to become such in in order not to disappoint those subscribers who had pre- order that they, like others, may participate in the temposented their subscriptions with reasonable promptness; rary deposits growing out of these issues. and the opportunity was taken to redeem on September 15 The patriotic, loyal, and enlightened support which the the certificates of Series V K, maturing October 7, 1919 banking institutions of the country gave to the Treasury (the last of the certificates issued in anticipation of the during the darkest days of the war and continued through Victory loan). The redemption of these certificates the perhaps more difficult period after the cessation of should" have a beneficial effect in connection with the hostilities,' when war expenditures were at their peak, large payments of income and profits taxes due on Sepjustifies the Treasury in addressing to them this confident tember 15. appeal now that the turn of the tide has come. The aggregate amount of Treasury certificates of indebtedness still outstanding on August 30 of the several series maturing or called for redemption on September 9 and 15, 1919, was 81,799,041,500. this entire'sum (which has Conversion of 4 Per Cent Coupon liberty Bonds. since been reduced by exchanges and cash redemptions) is provided for from cash in bank and income and profits The following circular was issued by the taxes due September 15, leaving an ample balance in the general fund." Treasury Department under date of Septem- There remain no maturities of certificates to provide for ber 8, 1919: prior to 1920, as the certificates maturing December 15 are more than covered by the income and profits tax install- To holders of 4 per cent gold bonds of 1927-1942 of the second ment due on that date. Liberty loom, and 4 per cent gold bonds of 1932-1947 of In the month of August just past ordinary and special the first Liberty loan converted: disbursements exceeded ordinary receipts by less than Under the provisions of Treasury Department Circular $500,000,000. In September, because of the income and No. 137, dated March 7, 1919, as'amended and suppleprofits tax installment payment, ordinary receipts should mented June 10, 1.919, the privilege of converting 4 "per exceed ordinary and special disbursements'by approxi- cent bonds of 1927-1942 of the second Liberty loan and 4 mately 8500,000,000. per cent bonds of the 1932-1947 of the first Liberty loan The success of recent issues of Treasury certificates, the converted into 4|- per cent bonds was extended for the fortunate cash position of the Treasury at the moment, and period beginning March 7, 1919, and ending on such date the reinvestment demand which will result from, the pay- as may be fixed by the Secretary of the Treasury on six ment of so large an amount of certificates on or before months' public notice. This extension of the conversion September 15 create a situation which should be availed privilege is now in force. Pursuant to its terms, 4 per cent of to make an important step forward in financing the debt Liberty bonds presented for conversion are deemed, for growing out of the war. In my letter of Juiv 25, above the purpose of computing the amount of interest payable, referred to, I indicated that the Treasury certificate pro- to be converted on the semiannual interest payment date gram might be varied at opportune times by the substi- next succeeding the date of presentation for conversion, tution of issues of tax certificates. This obviously is an and interest is payable at the rate of 4 per cent per annum opportune time, and accordingly the Treasury is offering- to such next succeeding semiannual interest payment date. two series of so-called tax certificates, both dated Sep- Accordingly, when coupon bonds are presented for contember 15, 1919, Series T 9, maturing March 15, 1920 and version, all coupons maturing on or before such next bearing interest at the rate of 4} per cent, and Series T 10, succeeding interest payment date must be detached and maturing September 15, 1920, and bearing interest at the collected in ordinary course when due, and the coupon rate of 4J per cent, payable semiannually. It is not pos- bonds issued upon conversion bear interest at the* rate of Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

October 1, 19.19. FEDERAL RESERVE BULLETIN. 959 4J per cent per annum only from such semiannual interest November 15, ."1919, and December 15, 19.19. respectively, payment (-ate. In other respects, the respective coupon and in that event will be deemed to present their bonds bonds issued upon conversion are identical with the for conversion only and will receive upon such conversion coupon bonds issued upon conversion of 4 per cent bonds bonds bearing interest at 4£ pov cent per annum from before the original conversion privilege expired, on November 15, 1919, and December 15. 1919. respectively, November 9, 1918. with coupons attached covering interest to May 15. 1920, Notwithstanding the extension of the conversion privi- iViid June 15, 1920. respectively. The 4} per cent bonds lege, approximately 8750.QOQ,.000 lace amount of 4 per cent issued upon such conversion will be exchangeable by Liberty bonds in coupon form remain outstanding uncon- their terms on and aiter May 15. 1920. and June 15, 1920, verted. Of these coupon bonds, the second .Liberty loan respectively, for 4~l per cent bonds with ail subsequent 4 per cent bonds have no coupons attached for interest coupons at t a oh ed. accruing after November 15, 1919, and the first Liberty 2. Holders of 4 per cent coupon bonds of the second loan converted 4 per cent bonds have no coupons attached Liberty loan and of the first Liberty loan converted who for interest accruing after December J5, 1919. On and desire to avail themselves oC the conversion privilege but after said dates, respectively, these bonds are exchange- neglect to present their bonds for conversion before Novemable, according to their terms, for like bonds with all sub- ber 15, 1919, and .December 1.5, 1919, respectively, should sequent coupons attached, but if presented, for conversion temporarily retain their 4 per cent coupon bonds und! the before said dates, the bonds issued, upon conversion will Treasury Department announces that the 4|- per cent bear interest at the rate of 41 per cent per annum from said coupon bonds of the second Liberty loan and oi" the jirst dates, respectively, sjid. like other 41 per cent coupon ; Liberty loan converted with coupons attached covering Liberty bonds now outs Landing issued upon conversion of iinterest to maturity are available for delivery (which, it 4 per cent bonds, will have no coupons attached for interest is expected, will be about Mar. 15, 1920), and then present accruing after Hay 15, 1920, and June 15, 1920, respec- their 4 per cent bonds promptly for conversion ai-d tively. On and after said dates, respectively, the 4i per exchange into such 4\ per cent; bonds. All 4 per cent cent bonds so issued will be exchangeable, according to coupon Liberty bonds presented on or after November 15, their terms, for like bonds with all subsequent coupons 1919, and December 15. 1919, respectively, for exchange attached, li, on the oilier hand, the 4 per cent coupon into bonds with all subsequent coupons attached will, bonds now outstanding are not presented for conversion unless otherwise expressly indicated "in writing by the until November 15, 1919, and December 15, 1919, respec- holder, be deemed to be presented for conversion into if tively, the bonds issued upon conversion will not begin to per ce/it bonds, as well as for exchange, and will bo held bear'interest at 4} per cent per annum until ^Fay 15, 1920, m suspense pending the date when the 41 per cent bonds and June 15, 1920, respectively, and will have no coupons with, all subsequent coupons attached shall be available attached. The 4^ per cent bonds so issued will likewise for delivery. With the 44 per cent coupon bonds issued be exchangeable on and after said dates for like bonds upon such conversion and exchange of 4 per cent bonds, with all. subsequent coupons attached, but holders of 4 holders of the surrendered 4 per cent bonds will receive per cent bonds" so surrendered who receive only such 4^ either a special coupon or an interest check, as the Secreper cent bonds will have received no coupon covering the tary of the Treasury in his discretion may prescribe, 4 por cent interest accruing on their bonds after November payable on the appropriate interest payment 'date and lo, 1919, and Dec-ember 15. 1919, respectively. covering the interest at 4 per cent per annum to which Holders of 4 per cent coupon bonds of the second Liberty they may be entitled up to the interest payment date from loan and of the first; Liberty loan converted who iail to which the new bonds begin to bear interest at 4;}percent present their bonds lor conversion before .November 15, per annum. 1919. and December 15, 1919. respectively, could secure 3. After November "15, "1919, and December 16. 1919, for themselves the coupons covering the 4 per cent iTitercst respectively, 4 per cent bonds of the second Liberty loan accruing after eaid dates to which they might be entitled and of the first liberty loan converted, with all subseby exchanging their 4 per cent bonds for like bonds with quent coupons attached, will be issued in exchange for all subsequent coupons attached, and then converting the the 4 per cent bonds for which, they are expressed to bo exbonds so received into 4J per cent bonds. This procedure, changeable, if specifically requested, but it is not expected however, would put such holders of 4 per cent coupon that they will be available for delivery before 2-.«arch 15. bonds to the inconvenience, first, of exchanging their 4 1920. In view of the extension of the conversion privilege. per cent bonds for like bonds with all subsequent coupons of which it is assumed all holders of 4 per cent Liberty attached, then of converting such 4 per cent bonds into bonds will desire to aval! themselves, the work of preparing 4-1- per cent bonds without coupons attached., and, finally, the 4 per cent bonds with all subsequent coupons"attached of exchanging such 4J per cent bonds for like bonds with has been subordinated to the work of preparing the •- J per all subsequent coupons attached, and would at the same cent bonds with all subsequent coupons attached. time impose upon the United Stales the imnocessaiy Important.—The 4 per cent registered bonds oil the expense of engraving and preparing 4 por cent bonds with second Liberty loan and of the fii-ot'Liberty loan converted all subsequent coupons attached. are in permanent form and need not be exchanged for other In order to avoid expense to the United States and incon- bonds. Holders of 4 per cent coupon bonds now outstandvenience to holders of 4 per cent coupon Liberty bonds, ing are. therefore, strongly urged to present their coupon and in order to make the necessary provision for the pay- bonds for exchange into registered bonds instead of' for ment of the 4 per cent interest accruing after November 15, coupon bonds with all subsequent coupons attached, and 1919, and December .15, 1919, respectively, OIL the coupon in that event will promptly receive registered bonds upon bonds surrendered, the following rules and regulations exchange. Holders of such 4 per cent coupon bonds who are hereby prescribed governing1 the exchange and con- present them, for conversion &s well as for exchange into version of 4 per cent coupon bonds of the second Liberty registered bonds will promptly receive registered 4J per loan and of the lirst Liberty loan converted: cent bonds, bearing interest at 4-} per cent per annum from 1. Holders of 4 per cent coupon bonds of the second the interest payment date next succeeding the date of pre- Liberty loan and of the first Liberty loan converted who sentation for conversion, in accordance with the terms of desire to avail themselves of the conversion privilege the extended conversion privilege. Any 4 per cent inshould* present them for conversion promptly, before terest accruing after November lo, 1919. and December 15; Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

960 FEDERAL RESERVE BULLETIN. October 1, 1919. 193 9, respectively, to which the holders of such bonds so Fiduciary Powers Granted to .National Basiks. surrendered for exchange into registered bonds may be entitled, will be paid to the holders by check. The applications of the following banks for The coupon bonds without coupons attached presented for exchange or conversion under the provisions of this permission to act under section 11-k of the circular must be exchangeable by tltfJ'ir terms for like Federal Reserve Act have been approved by bonds with all subsequent coupons attached. the Federal Reserve Board during the month Rules and regulations governing the exchange of coupon of September, 1919: liberty bonds for like bonds with ,all subsequent coupons attached, with appropriate formpj will be prescribed in due course in a further Treasury Department circular DISTRICT NO. 1. which will shortly be announced. The Secretary of the Treasury may withdraw or amend Trustee, executor, administrator, registrar of stocks and at any time or from time to time any or all of the pro- bonds, guardian of estates, assignee, receiver, and comvisions of this circular. mittee of estates of lunatics: Boylston "National Bank, Boston. Mass. Marthas Vineyard National Bank, Tisbury, Mass. Commercial Failures Reported. DISTRICT No. 2. Trustee, executor, administrator, registrar of stocks and Continuing their remarkably favorable ex- bonds, guardian of estates, assignee, receiver, and comhibit, commercial failures in the United States mittee of estates of lunatics: National Bank of Orange County, Goshcn, N. Y. during three weeks of September, as reported Boonton National Bank, Boonton, N. ,1. to R-.'G. Dun & Co., number only 312, against Trustee, executor, administrator, guardian of estates, 438 in the corresponding period of 1918, when assignee, receiver, and committee of estates of lunatics: the business mortality was relatively moder- Gotham National Bank, New York, N. Y. ate. The statement for August, the latest Merchants National Bank of the City of New York. month for which complete statistics are available, discloses 468 insolvencies for §5,932,393, DISTRICT NO. 3. the numerical showing being the best, excepting Trustee, executor, administrator, registrar of stocks and that of July, this year, of any month on record, bonds, guardian.of estates, assignee, receiver, and comand the indebtedness the smallest of all months mittee of estates of lunatics: in nearly two decades, aside from the $5,507,010 National Bank of Gerrnantown, Philadelphia, Pa. of July of this year. When the August returns DISTRICT NO. 4. are separated according to Federal Reserve districts, it is seen that only in the sixth district Trustee, executor, administrator, registrar of stocks and is there any increase in number of defaults over bonds, guardian of estates, assignee, receiver, and comthose of the same month last year, while the mittee of estates of lunatics: First National Bank, Grccnsburg. Pa. second and sixth districts alone show larger Union National Bank, Pittsburgh. Pa. liabilities. National Bank of West Virginia, Wheeling, W. Ya. Trustee, executor, administrator, registrar of stocks and Failures during August. bonds, guardian of estates, assignee, and receiver: National Exchange Bank, Steubenville, Ohio. Number. Liabilities. DISTRICT No. 5. Districts. 1919 1918 1919 1918 Trustee, executor, administrator, registrar of stocks and bonds, guardian of estates, assignee, receiver, and committee of estates of lunatics: F Se ir c s o t nd 105 1 8 .6 5 1 1 5 8 ; . 5 3 0 9 5 8 1 S ,5 6 8 2 8 3 , , 1 6 6 0 9 2 Commercial National Bank, Charlotte, N. C. Third 34 '436,387 560,510 Fourth 73 321.764 1,225,745 Fifth 31 141,410 398,200 DISTRICT NO. 7. Sixth 41 705,852 495,234 Seventh 135 3,079,013 1,342,282 Trustee, executor, administrator, registrar of stocks and Eighth 23 118,392 124,281 Ninth 38 50.210 374,466 bonds, guardian of estates, assignee, receiver, and com- Tenth 20 141',370 184,171 mittee of estates of lunatics : Eleventh... 46 249,603 298,340 Manufacturers National Bank, Rockford, 111. Twelfth.... 554,489 First National Bank, Elkhart, Ind. Total, 468 720 5,932,393 7,984,760 City National Bank, Lqgansport, Iowa. First National Bank, West Bend, Wis. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

October 1, 1919. FEDERAL. RESERVE BULLETIN. 961 DISTRICT NO. 10. Trustee, executor, administrator, registrar of stocks and Capital. : Surplus, j Total bonds, guardian of estates, assignee, receiver, and com- District No. 9. mittee of estates of lunatics: Central Savings Ban]?:, Sault Sto Mario, Grand Valley National Bank, Grand Junctioji, Colo. Mich : 100,000 20,000 075,200 Trustee, executor, administrator, registrar of stocks and Farmers Stale Bank of "Waconia, Wabonds, guardian of estates, assignee, and receiver: conia, Minn 25.000 8. 500 446,237 Citizens National "Dank, Fort Scott, Kans. S S o ta u t t e h B S a h n o k r e o f B L a a n k O ', r S os o s u o t , h L S a h C o r r o e, s s S c . , T "W )ak is . . 1 2 0 5 0 ' , 0 0 0 0 0 0 5 3 0 , , 5 0 0 0 0 0 2,0 2 6 5 7 2 , , 0 1 2 3 2 4 DISTRICT NO. 12. District No. 12. Trustee, executor, administrator, registrar of stocks and Ocean Park Bank, Santa Monica, Calif.. 100,000 ! 1,053,290 bonds, guardian of estates, assignee, receiver, and com- I T t l a i l o i a J n J a A nk m o e f r S i t c . a H n e B le a n n a k , , S S t. a n H F el r e a n n a c , i C sc a o li , f . 75,000 j j 20,500 754,174 mittee of estates of lunatics: Calif 11,000,000 142,500 11,135,353 First National Bank, Fairbanks, Alaska. Citizens State Bank, Stanwood, Wash, .j 25,000 ; 2,500 27,644 CHANGES OY NAMES. Acceptances to 100 Per Cent. The Chicago Savings Bank & Trust Co., Chicago, 111., to Chicago Trust Co. The Metropolitan Bank, New Orleans, La., to Pan-American Bank & Since thoissuanco of the September BULLETIN Trust Co. the following banks have been authorized by The announcement in the September BULLETIN" of the change of name of the City Savings Bank & Trust Co., Alliance, Ohio, to Citizens Savthe Federal Reserve Board to accept drafts ings Bank & Trust Co., was in error. and bills of exchange up to 100 per cent of WITHDRAWALS FROM MEMKKKSIIIP. their capital and surplus: The Citizens Bank & Trust Co., Athens, Ala. The Lake Providence Bank, Lake Providence, La. New Bedford Safe Deposit & Trust Co., New Bedford, The City Bank & Trust Co., New Orleans, La., has merged with the Whitney Central Trust & Savings Bank oi New Orleans, and has sur- Mass. rendered its stock in the Federal Reserve Bank. Union National Bank, Pittsburgh, Pa. National Bank of Commerce, Kansas City, Mo. Central National Bank, Cleveland. Ohio. Election of Directors, Henderson National Bank, Iluntsville, Ala. The Federal "Reserve Board has notified Fed- Citizens Trust Co., Savannah, Ga. Canal-Commercial Trust & Savings Bank, New Orleans, eral Reserve agents that groups for the elec- La. tion of Class A and B directors this year be selected on the same basis as prescribed by State Banks and Trust Companies • Admitted, the Board last year. The Board has designated Tuesday, .November 18, 1919, as the The following list shows the State banks date for opening the polls. and trust companies which have been admitted to membership in the Federal Reserve Systoni during the month of September. New National Basak Charters* One thousand one hundred and sixteen The Comptroller of the Currency reports State institutions are now members of the the following increases and reductions in the system, having a total capital of $391,150,946, number of national banks and the capital of total surplus of §426,685,710, and total renational banks during the period from August sources of $8,695,205,149. 30, 1919, to September 26, 1919, inclusive': Banks. Capital. Surplus. Total .New charters issued to 19 With capital of §725,000 Increase of capital approved for * 29 District No. 2. With new capital of .1 1, 760, 000 Elizabethport Banking Co., Elizabeth, Aggregate number of new charters and N. J $213,787 850,000 84,410,095 banks increasing capital 48 District No. :•,. With aggregate of new capital authorized 2, 435, 000 Lowistown Trust Co., Lewistown, Pa... 12"), 000 25,000 731,186 Number of banks liquidating (other than District No. 4. those consolidating with other national banks under the act of June 3, 1864) 9 The Security Bank, Portsmouth, Ohio . .150,000 250,000 2,315,407 The Pearl Street Savings & Trust Co., Capital of same banks 340,000 Cleveland, Ohio 600,000 400,000 14,127,455 Number of banks reducing capital 0 The Orrville Savings Bank, Orrville, Reduction of capital 0 Ohio 50,000 45,000 Total number of banks going into liquida- District No. 6. tion or reducing capital (other than those Citizens Trust Co., Savannah, Ga 200,000 50,000 9] 8, 57:$ consolidating: with other national banks District No. 7. under the act of June 3, 1864) 9 State Bank of Caledonia, Caledonia, Mich 25,000 14,000 470,043 Aggregate capital reduction 340,000 District No. 8. Columbia County Bank, Magnolia, .Ark 50,000 11,500 569,271 1 Includes two increases of capital aggregating $200,000 incident to Citizens Bank, I)yersburg, Term 50,000 50,000 868,281 consolidations under the act of November 7, 1918. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

962 FEDERAL RESERVE BULLETIN. October 1, 1019. Consolidation of national banks under the Mercantile Bank of the Americas, New York City: act of Nov. 7, 191.8 2 New Orleans, La. Capital 800,000 Affiliated institution: Banco Mercantil Americano de The foregoing1 statement shews the aggre- Colombia— gate of increased capital for the period of Bucaramanga, Colombia. the banks embraced in statement was 2, 485, 000 Against this there was a reduction of capital Crop Statistics, by Federal Reserve Districts., owing to liquidation (other than for consolidation with other national banks un- Forecasts of corn production as of September der the act of June 3, 1864) and reduc- 1 arc above those of a month earlier, while foretions of capital of 340, 000 casts of wheat, oats, and hay production are low- Net increase 2, M5,000 er on September 1 than on August 1. The decrease in the wheat forecast is due largely to a smaller expected yield of spring wheat in the Minneapolis district, while the largest increase Foreign Branches. in forecasted corn production is in the Chicago district. A list of branches of national banks and in- It appears that corn production will be about ternational and foreign banks, doing business 275,000,000 bushels in excess of last year's crop, under agreement with the Federal Reserve while the wheat crop will be only 6,000,000 Board, which have opened for business recently, bushels greater than, a year ago. According to is given below: present indications the production of oats will National City Bank, New York City: be over 300,000,000 bushels lower than last Colon, Cuba. year, this year's crop being the smallest since Placetas del Norte. Cuba. 1914. The hay crop, on the other hand, is ex- International Banking Corporation, New York City: pected to be 13,000,000 tons in excess of the Lyons, France. Sanchez, Dominican Republic. 1918 production. Acreage and production of corn, wheat, oats, and hay in Federal Reserve districts and in the United States, 1919 and 1918. [In thousands of units of measurement.] ! T U S o t n t a a i t l t e e f s d o , r i ! i T l o t O r l i a d c ! i t s f s - o . r D B•o i 1 s s— t t r o ic n t . 2 D i - s - t N ri o c w t d D P e i l h s p t i h r la i i c - a t . D C l i a J 4 s u - e ir d v i e . c - t D m R i 5 o s i — t c n r h d i - c . t D 7 c — i a s g t C r o h i . c i- t | D L 8 i — o s u t S r i i s t c . . t D M ap i 9 s i o n — t l r n i i s e c . - t '. ; | \ D 1 c F 2 i i — s r s a t c r S n o i - a . c n t J j ! Acreage: i 1919 i 102,077 78, 701 188 951 1,533 5,273 I 8,803 14,964 24,178 15,366 7,235 i 270 1918 j 107,494 91,230 202 967 1,545 5,412 I 8,745 15,191 35,346 16,726 6,811 j 255 Production (bushels): j Forecast as of Aug. 1,1919. 2,788,378 2,213,833 9,430 39,923 65,542 192,440 I 205,393 246,533 843,122 369,857 233,060 | 8,533 Forecast as of Sept. 1,1919. 2,857,692 12,285,382 9,094 40,141 66,547 203,618 1 198,884 ! 246', 448897,618 377,951 I 236', 708 j 8,373 Estimated., 1918"....: :2, 582,814 2,266,195 9,273 35,604 59,805 184,232 I 205,689 j 253,494895,138 372,977 I 241; 402 8,581 "WHEAT. Acreage: 1919 71,526 45,888 32 593 1,523 2,954 3,678 1,268 5,166 7,357 j 17,477 ! 5,840 1918 59,110 41, 445 41 497 1,344 2,853 3,5Q5 1,168 3, 766 5,680 ! 17^551 ! 4,980 Product ion (bushels): I Forecast as of Aug. 1,1919.1 940,381 593,641 767 12,509 25,836 59,288 41.237 12,022 86,287 103.537 ! 146,980 ;105,178 Forecast as of Sept. 1.1919.! 923,350 580,639 764 12.509 25,836 59,253 1.2,022 86,287 103,537 j 134,473 ! 104,721 Estimated, 1918 '. 917,100 669,928 902 8,979 22,312 52,012 40, 754 11,710 74,585 101,837 281,025 j 75,812 OATS. Acreage: 1919 42,365 31,754 334 i 1,149 7-18 1,211 1,317 ! 14,118 ! 2,438 9,285 1,154 1918 j 4; -100 35,661 332 ; 1,339 764 j 2,432 1,238 1,497 14,923 I. 2,597 9,333 1,206 Producti on (bushels): ! Forecast as of Aug. 1,1919. jl, 2666,,401 985,541 11,882 '• 29,905 22,002 ! 69,600 25,747 26,456 j 453,249 j 70,474 235,753 40,473 Forecast as of Sept. 1. 1919.1,224,815 944,732 12,004 ! 27,412 20,742 ! 68,394 25,393 25,833 438,683 ' 67,019 218,582 40,670 Estimated, 1918?....'. 1,538,359 1,342.577 13;280 ; 54; 811 29,773 i 101,356 28, 111 30,860 640,005 ! 77,486 329,045 37,850 HAY. Acreage: 19i9 69,719 54,494 3,700 '" 4,658 2,226 !. 3,28S 3,723 j 12,618 5,626 12,285 6,370 1918 71,254 59,041 3,631 i 4,658 2,226 j 4,397 3,287 3,744 ! 12,735 5,762 12,394 6,207 Production (ions): Forecast as of Aug. 1,1919. 110,876 87,353 4,849 : 6,956 3,157 i 6,009 4,391 4,651 18,841 I 7,44.3 18,704 12,352 Forecast as of Sept. 1,1919. 103,544 81,862 4,835 i 6,862 3,013 i 5, 719 4,286 4,372 18,010 • 7,398 14,994 12,373 Estimated, 1918 90,443 75,208 4,393 ! 5,847 3,116 I 6', 122 4,203 3,805 16,344 ! 6,500 14,304 10,574 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

October 1, 191.9. FEDERAL RESERVE BULLETIN. 983 Below are published rulings made by the deposit liabilities of the national bank in com- Federal Reserve Board which are believed to puting its reserve. This custom no doubt grew be of interest to Federal Reserve Banks and out of the fact that national banks were originally required to carry reserve against circumember banks. lation as well as against deposits. Computation of reserves. in the case of individual deposits, however, The Federal Reserve Board has issued the the same rule was not applied—that is to say, following ruling, under authority granted to it if a corporation had on deposit the sum of in section 19 of the Federal Reserve Act, upon § 1.0,000 and the depositary bank held the dethe two questions presented below: | mand note of the corporation for §6,000, the 1. In figuring reciprocal balances should the bank was never permitted to deduct the dedollar balances due to foreign banks be offset mand note from the deposit liability in comby foreign currency balances due from same puting its reserve. This practice of the compbanks ? troller's office in drawing a distinction between 2. For the purpose of figuring reserve re- bank deposits and individual deposits was quirements, should foreign currency balances ratified by statute when the Federal Reserve due from foreign banks be used, as a deduction Act was passed. The language of the statute from "duo to" bank balances the same as due is as follows: from banks in this country ? In estimating the balances required by this act the net Section 19 of the Federal Reserve Act difference of amounts due to and from other banks shall requires each member bank to maintain a be taken as the basis for ascertaining the deposits against fixed reserve against demand and time de- which required balances with Federal Reserve Banks shall be determined. posits. For the purpose of computing reserves, demand deposits are divided into two The question submitted, therefore, involves general classes, viz, (a) Individual or ordinar}r an interpretation of this language. In reachdeposits. (?>) Bank deposits. ing a conclusion it is necessary to determine: Balances due to other banks have been 1. Did Congress intend to treat balances due treated as deposit liabilities regardless of how to foreign "banks as deposit liabilities ? these balances are created. In general, a 2. If so, did it intend to permit balances due balance due to another bank may be treated from foreign banks to be deducted as bank in one of two ways: (a) The funds may be balances ? placed with the depositary bank by another If balances due to foreign banks arc not to bank for exchange purposes; that is to say, be treated as deposit liabilities the question with a view of using these funds as a checking arises whether they are subject to reserve reaccount; or (6) the depositary bank may quirements. If they are not treated as deposit receive from another bank items for collection liabilities they would probably have to be and remittance and the balance due to another classified as money borrowed, in which event bank may consist of funds which are not to thov would be subject to limitations of section bo drawn against but which are to be remitted 5202. at a later date. Assuming that these balances are pajrable in Prior to the passage of the Federal Reserve dollars at the banking house of the depositary Act the office of the comptroller without any bank in the United States, it would seem, clear express provision of law made a distinction that they conform to the requirements of debetween ordinary deposits and. bank deposits posit liabilities and should be treated as such, in that in the case of bank deposits in comput- it is not entirely clear, however, that they ing reserves the depositary bank was permitted come in the category of balances due to other to deduct balances due from other banks from banks. In other words, the question arises balances due to other banks, and to treat as a whether the language "other banks'' as used deposit liability only the net balances due to in the statute refers to banks organized under other banks. This custom has prevailed for the laws of the United States, or under the many years. It was likewise customary for laws of a State of the United States, or whether the comptroller's office to permit national-bank it is intended to include foreign banking notes of other banks to be deducted from the corporations. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

964 FEDERAL RESERVE BULLETIN. October 1, 1919. From a purely technical standpoint it would become a part of the member bank's reserve. seem that these deposits should be treated as The board has reached the conclusion, thereordinary deposits and not as bank deposits, fore, that a member bank should not be persince section 1 of the Federal Reserve Act pro- mitted to deduct a balance due from a foreign vides that: banking corporation from the balance due to such corporation in computing its reserve and a Wherever the word '"bank" is used in this act the word shall be held to include State bank, banking associations, fortiori it should not be permitted to deduct and trust company except where national banks or Federal balances due from foreign correspondents or Reserve Banks are specifically referred to. banks from balances due to other banks. It is true that the term "banking association7' may be said, to be broad enough to include foreign as well as domestic banks. It is Collection of checks drawn against a savings account. a significant fact, however, that wherever the act relates to transactions with persons, firms, The Federal Reserve Board is of the opinion or corporations in foreign countries it uses the that a check upon a savings account in a memword "foreign" to qualify such persons, firms ber bank is a check or draft within the meaning or corporations. For example, in section 14, of that part of section 13 of the Federal Reserve it refers to "foreign corporations/7 "foreign Act which prohibits any bank from making a correspondents or agencies/7 "foreign firms," charge against a Federal Reserve Bank upon and. "foreign individuals." In section 13 it checks or drafts presented for collection or paydraws a distinction between foreign and domes- ment and remission therefor by exchange or tic tr ans actions. otherwise. It may reasonably be argued, therefore, that The Federal Reserve Board has ruled thathad Congress intended the word "bank" to maturing notes and bills, or bill of lading drafts include foreign associations and foreign corre- drawn against a person, firm, or corporation, spondents, it would have so provided in that other than a bank, do not come within the propart of section 1, which is above quoted. In visions of that part of section 13 referred to this view the conclusion would seem to be above. A bank may, therefore; properly charge justified that balances due to foreign banks, the Federal Reserve Bank for collecting such firms, or associations, are not to be treated as an item. A check or draft, however, which is balances due to other banks within the meaning drawn by a depositor in a bank upon his acof that language as used in the act. If this bo count in that bank is a check or draft within the true, it is clear that Congress did not intend to meaning of section 13, regardless of whether or permit balances due from foreign banks, firms, not the funds out of which it is intended that or associations to be deducted from balances the check shall be paid constitute a savings due to other banks. deposit or an ordinary demand deposit. Viewing this question from a practical stand- Legally, therefore, the drawee bank has no point, there does not appear to be any real authority under the provisions of section 13 of justification for permitting this deduction. the Federal Reserve Act to deduct exchange in The reserve carried against demand liabilities making payment upon a check drawn against is primarily for the purpose of enabling the one of its savings accounts sent to it for collecdepositary bank to meet any unusual or ab- tion by a Federal Reserve Bank. normal withdrawals on the part of the depositors. Balances due from other banks in the United States are available for this purpose. Conditional sales as the basis of trade acceptances. They may be quickly and expeditiously trans- An acceptance which provides that the drawer ferred to the Federal Reserve Bank, and when is to retain title to the goods until payment so transferred become a part of the actual of the acceptance is not consistent with the reserve of the depositary bank. In the case requirement of a legitimate trade acceptance of balances due from foreign banks, however, that the title shall have passed to the drawee at this is not true. Such balances would have the time of acceptance. The actual sale of to be sold on the market like any other invest- goods and not what is generally termed a conment and the proceeds of the sale deposited ditional sale of goods must be the basis of the with the Federal Reserve Bank in order to acceptance. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

October 1,1915). FEDERAL RESERVE BULLETIN'. 965 LAW DEPARTMENT. Status of Federal Banking Legislation. "Every national banking association operating foreign branches shall be required to furnish information concerning the condition of such branches to the Comptroller of INVESTMENTS BY NATIONAL BANKS IN THE the Currency upon demand, and every member bank STOCK OF CORPORATIONS ENGAGED IN CER- investing in the capital stock of banks or corporations TAIN PHASES OF FOREIGN FINANCIAL OPERA- described above shall be required to furnish information concerning the condition of such banks or corporations to TIONS. the Federal lleserve Board upon demand, and the Federal Reserve Board may order special examinations of the said On September 17, 1919, the President signed branches, banks, or corporations at such time or times as Senate bill 2395, which passed the Senate on it may deem best. " July 14, and the House on September 3. The bill is now a law in the' form printed below, FEDEEAL INCOEPOEATION OF INSTITUTIONS TO and amends section 25 of the Federal Reserve ENGAGE IX FOREIGN BANKING OE OTHER Act so as to enable any national bank to invest FINANCIAL OPEEATIONS. not exceeding 5 per cent of its capital and surplus in the stock of one or more corporations Senate bill 2472, known as the "Edge bill," chartered under Federal or State law princi- to provide for the Federal incorporation of pally engaged in such phases of international institutions to engage in international or foror foreign financial operations as may be nec- eign banking or other financial operations, was essary to facilitate exports from the United passed by the Senate on September 9, 1919, States. and referred to the House Committee on Banking and Currency, whore it is now under con- (Public—No. 48—66th Congress.) sideration. The bill as originally reported by the Senate Committee on banking "and Cur- AN ACT Amending section 25 of the Act; approved December 23.1913 known as the Federal Reserve Act, as amended by the Act approved rency is printed on pages 728 and 729 of the September 7,1916. August, 1919, BULLETIN. Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,LIMITATIONS ON LOANING POWER OF NATIONAL That section 25 of the Act approved December 23, 1913, BANKS. known as the Federal Reserve Act, as am ended by the Act approved September 7, 1916, be farther amended by the House bill 7478, amending sections 5200 addition of the following paragraph at the end of subparagraph 2 of the first paragraph, after the word "posses- and 5202 of the Revised Statutes, was passed sions": by the House on July 31, 1919, and in slightly "Until January 1, 1921, any national banking associa- amended form was passed by the Senate on tion, without regard to the amount of its capital and sur- October 2, 1919. llie amendments of the plus, may file application with the Federal lleserve Board for permission, upon such conditions and under such regu- Senate were agreed to by the House on Octolations as may be prescribed, by said board, to invest an ber 7, 1919, and goes to the President for apamount not exceeding in the aggregate 5 per centum of its proval in the form printed below. paid-in capital and surplus in the stock of one or more corporations chartered or incorporated under the laws of the Be it enacted by Cue Senate and House of Representatives of United States or of any State thereof and, regardless of its the United States of America in Congress assembled, That location, principally engaged in such phases of interna- section 5200 of the Revised Statutes of the United States tional or foreign financial operations as may be necessary as amended by the Acts of June 22, 1906, and September to facilitate the export of goods, wares, or merchandise from 24, 1918, be further amended to read as follows f the United States or any of its dependencies or insular "Sec. 5200. The total liabilities to any association of any possessions to any foreign country: Provided, however,person or of any company, corporation, or firm for money That in no event shall the total investments authorized borrowed, including in the liabilities of a company or by this section by any one national bank exceed 10 per firm the liabilities of the several members thereof, shall centum of its capital and surplus." at no time exceed 10 per centum of the amount of the SEC. 2. That paragraph 2 of said section be amended by capital stock of such association, actually j>aid in and adding after the"word "banking, " in line three, the words unimpaired, and 10 per centum of its unimpaired surplus "or financial," so that the sentence will read: "Such fund: Provided, hoivever, That (1) the discount of bills of application shall specify the name and capital of the bank- exchange drawn in good faith against actually existing ing association filing it, the powers applied for, and the values, including drafts and bills of exchange secured by place or places where the banking or financial operations shipping documents conveying or securing title to goods proposed are to be carried on." shipped, and including demand obligations when secured SEC. 3. That paragraph 3 of said section be amended by by documents covering commodities in actual process striking out the words'"subparagraph 2 of the first para- of shipment, and also including bankers' acceptances of graph of this section" and inserting in lieu thereof the the kinds described in section 13 of the Federal lleserve word "above," so that the paragraph will read: Act, (2) the discount of commercial or business paper Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

966 FEDERAL RESERVE BULLETIN. October 1, 1919. actually owned by the person, company, corporation, or which it is located, provided that no such firm negotiating the same, (3) the discount of notes secured branch shall be established in any State in by shipping documents, warehouse receipts, or other such which neither State banks nor trust companies documents conveying or securing title covering readily marketable nonperishable staples, including live stock, may lawfully establish branches. This bill has when the actual market value of the property securing the not as yet been acted upon by the House Comobligation is not at any time Less than 115 per centum of the mittee on Banking and Currency. face amount of the notes secured by such documents and when such property is fully covered by insurance, and (4) the discount of any note or notes secured by not less AMENDMENT OF WAR FINANCE CORPORATION than a like face amount of bonds or notes of the United ACT. States issued since April 24, 1917, or certificates of indebtedness of the United States, shall not be considered as On September 26, 1919, the Senate Commoney borrowed within the meaning of this section. The total liabilities to any association, of any person or of any mittee on Banking and Currency favorably corporation, or firm, or company, or the several members reported Senate Joint Resolution 88, introthereof upon any note or notes purchased or discounted duced by Senator Owen on August 12, amendhy such association and secured by bonds, notes, or ing the War Finance Corporation Act so as certificates of indebtedness as described in (4) hereof shall not exceed (except to the extent permitted by rules and to authorize the War Finance Corporation to regulations prescribed by the Comptroller of the Currency, extend financial aid to American exporters if with the approval of the Secretary of the Treasury) 10 per it is necessary in the opinion of the Board of centum, of such capital, stock and surplus fund of such Directors of the War Finance Corporation for association and the total liabilities to any association of any person or of any corporation, or firm, or company, or the maintenance or promotion of the foreign the several members thereof for money borrowed, including trade of the United States. Under the law the liabilities upon notes secured in the manner described in its present form it is impossible for the under (3) hereof, except transactions (L), (2), and (4), War Finance Corporation to make such adshall not at any time exceed 25 per centum, of the amount of the association's paid-in and unimpaired vances unless the exporter is, in the opinion capital stock and surplus. The exception made under of the board of directors of that corporation, (3) hereof shall not apply to the notes of any one person, unable to obtain funds upon reasonable terms corporation or firm or company, or the several members through banking channels. The resolution as thereof for more than six months in any consecutive twelve months." reported by the Senate committee reads as follows: Sec. 2. That section 5202 of the Revised Statutes of the United States as amended by section 20, Title I, of the Act approved April 5, 1918, be further amended so as to [66th Congress, 1st Session. S. J. lies. 88.] read as follows: Resolved by the Senate and House of Representatives of the "Sec. 5202. No national banking association shall at any United States of America in Congress assembled,. That sectime be indebted, or in any way liable, to an amount tion 21a of an act entitled "An act to provide further for exceeding the amount of its capital stock at such time the national security and defense, and, for the purpose of actually paid in and remaining undiminished by losses or assisting in the prosecution of the war, to supervise the otherwise, except on account of demands of the nature issuance of securities, and for other purposes," be amended following: to read as follows: "First. Notes of circulation. "SEC. 21a. (a) That the corporation shall be empowered "Second. Moneys deposited with or collected by the and authorized, in order to promote commerce with foreign association. nations through, the extension of credits, to make advances "Third. Bills of exchange or drafts drawn against and extend financial aid upon such terms, not inconmoney actually on deposit to the credit of the association, sistent with the provisions of this section, as it may preor due thereto. scribe for periods not exceeding ten years from the "Fourth. Liabilities to the stockholders of the associa- respective dates of payment by the corporation—• tion for dividends and reserve profits. "(1) To any person, firm, corporation, or association "Fifth. Liabilities incurred under the provisions of the engaged in the business in the United States of exporting Federal Reserve Act. therefrom domestic products to foreign countries, if the "Sixth. Liabilities incurred under the provisions of same is necessary, in the opinion of the board of directors, the War Finance Corporation Act. of the exportation, for the maintenance or promotion of "Seventh. Liabilities created by the indorsement of the foreign trade of the United States. Any such advance accepted bills of exchange payable abroad actually owned shall be made only for the purpose of assisting in the exby the indorsing bank and discounted at home or abroad." portation of such products, and shall be limited in amount to not more than the contract price therefor, including insurance and carrying or transportation charges to the DOMESTIC BRANCHES OF MEMBER BANKS. foreign point of destination; and "(2) To any bank, banker, or trust company in the On August 2, 1919, the Senate passed a bill United States which, after this section takes effect, makes authorizing any member bank located in a an advance to any such person, firm, corporation, or associty of more than 100,000 inhabitants and ciation for the purpose of assisting in the exportation of possessing a capital and surplus of $1,000,000 such products. Any such advance shall not exceed the amount remaining unpaid of the advances made by such or more, to establish not more than 10 branches bank, banker, or trust company to such person, firm, corwithin the corporate limits of the city in poration, or association for such purpose. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

October 1. 1910. FEDERAL RESERVE BULLETIN. 967 "(b) The aggregate of the advances made by the cor- Senate on October 2, 1919. The bill as reporation under this section remaining unpaid shall never ported by the conference committee was passed at any time exceed the sum of SL006,00()."000. u(c) Notwithstanding the limitation oil section '!. the by the Senate on October 3. This bill provides advances provided for by this section may be made until a penalty for violation of any of the provisions the expiration of one year after the termination of the war of section 4 of the Lever Food Control Act, herebetween the United States and the German Government, tofore described, and extends the definition of as fixed by a proclamation by the President. Any such the term "necessaries77 so as to make the act advance made or financial aid extended by the corporation shall be made with full and adequate security in each apply not only to foods, feeds, and fuel, and instance, by indorsement, guarantee, security, or other- tools, implements, or'machinery required for wise. The corporation shall retain power to require addi- their production, but also to wearing apparel tional security at any time. The corporation in its disand to containers primarily designed to contain cretion may, upon like security, extend the time of payment of any such advance or other payment through re- foods, feeds, or fertilizers. newals, the substitution of new obligations, or otherwise. but the time for the payment of any such advance shall not be extended beyond ten years from the date on which, it was originally made." AMENDMENT TO ALABAMA BANKING LAWS. An act enacted by the Legislature of Ala- STATUS OF FEDERAL ANTIPROFITEERIXG LEGISbama and approved by the governor on Sep- LATION. tember 17, 1919, embodies the substance of the act recommended by the Federal Keserve The so-called Lever Food Control Act, ap- Board and the American Bankers7 Association proved August 10, 1917, whirii applies OEIV to to bring about greater coordination in the foods, feeds, and fuel, and tools, implements, powers of State and national banks and to or machinery required for their production, is promote uniformity in State and Federal the only Federal legislation specifically relating banking laws. The Alabama act reads as to the control of profiteering. By the terms of follows: section 1 of that act, the articles mentioned SECTION7 1. That any bank or trust company incorpoabove arc defined as "necessaries" for the purrated under the laws oi: this State shall have the power to poses of the act. Section 4 makes it unlawful subscribe to the capital stock and become a member of a for any person to destroy any "necessaries5' Federal Reserve Bank created and organized under an for the purpose of enhancing their price or act of Congress of the United States approved on the 23d day of December, 19J3, known as the Federal Reserve Act. restricting their supply; to commit waste or SKC. 2. Any bank or trust company incorporated under permit deterioration; to horde; monopolize: to the laws of this State which shall become a member of a engage in discriminatory, unfair, deceptive, or Federal Reserve Bank shall be subject to all the provisions wasteful practices; to make any unjust or un- of the Federal Reserve Act and the amendments thereto, reasonable charge in handling or dealing in and to the regulations of the Federal Reserve Bank and "necessaries/7 and to conspire or to combine of the Federal lieserve Board applicable to such bank or trust company. (a) to limit the facilities for transportation, SEC. 3. Any bank or trust company incorporated under producing, harvesting, manufacturing, supply- the laws of this State which is or may become a member of ing, storing, or dealing in any "necessaries;'7 a Federal Reserve Bank shall keep and maintain as a lawful reserve the same reserves as are required by the (b) to restrict the supply of any "necessaries;" 'Federal lieserve Act and the amendments thereto of other (e) to restrict distribution of any "necessaries;" banks members of the Federal Reserve System, and a (d) to prevent, limit, or lessen their manufac- compliance by such bank or trust company of this State with the reserve requirements of the Federal Reserve Act ture or production in order to enhance the price shall be held to be a full compliance with the provisions of any "necessaries;" or (e) to exact excessive of the laws of this State on the subject of bank reserves, prices for any "'necessaries.77 and such bank or trust company shall not be required to Under the" terms of the Lever Food Control carry reserves other than such as are required under the ternis of the Federal lieserve Act and its amendments. Act there is no penalty for the violation of any SEC. 4. Any bank or trust company chartered under the of. these prohibitions, except hoarding, willful laws of this State and doing business therein which is or destruction, and conspiracy or combination for which may become a member of the Federal lieserve system shall be subject to the examinations required under the purposes described in (a), (b), (c), or (cl) the terms of the Federal Reserve Act and its amendments above, but not (e). by the proper officers appointed thereunder or pursuant There is now pending before Congress a bill thereto, and the authorities of this State having super- (House bill 8624), which has passed both the vision over such banks and trust companies may in their discretion accept such examinations in lieu of the exami- House and the Senate in slightly different nations required under the laws of this State. forms, and which was resubmitted by a con- SEC 5. The authorities of this State having supervision ference committee to both the House and over such banks or trust companies may in their discretion Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

968 FEDERAL RESERVE BULLETIN". Oetobor 1, 1919. furnish to the Federal Reserve Board or to the Federal Ordinary warehouse receipts are subject to sale, and Reserve Bank of which any bank or trust company organ- when sold and delivered pass the title to the property ized under the laws of this State may become a member, represented by them as fully and completely as if the or to the examiners duly appointed by the Federal Reserve property itself was delivered. If the tax on whisky has Board or such Federal Reserve Bank, copies of any or all been paid and it has been removed from the warehouse examinations and audits made of the banks and trust of which the Government has control and stored in an companies which are members of the Federal Reserve ordinary warehouse, the sale of the warehouse receipts System, and may disclose to such Federal Reserve Board would be a sale of the whisky, and where such sale is made or to such federal Reserve Bank or such examiners, in for beverage purposes, that is not specifically for some their discretion, any information with reference to the beverage purpose, it would be a clear violation of the condition or affairs of such banks or trust companies as war prohibition act. are or may become members of the Federal Reserve I assume, however, that this is not the character of System. certificate referred to in your letter. I presume you refer SEC. 6. All laws or parts of laws in conflict herewith be to certificates represent ing whisky held in bond subject and they are hereby repealed. to the control of the Government, and which can not be removed from the warehouse until the tax is paid. Under those conditions the purchaser of the certificate acquires all the rights of the' seller, but these rights are simply Sale of warehouse certificates representing whisky. to remove the whisky from the warehouse upon the payment of the tax and compliance with all the regulations of the bureau of Internal Revenue. IJI other words, he Below is printed a copy of an opinion filed acquires the whisky subject to the rights of the Governby the Attorney General with the Secretary of ment. the Treasury under date of August 21, 1919, The war prohibition act prohibits, after June 30. 1919, to the effect that the sale of warehouse cer- not only the manufacture and sale of whisky, but also its removal from, bend for beverage purposes, except for tificates on whisky held in bond, and subject export. Since this law became effective, therefore, the to the payment of tax before it can be removed, purchaser of such a certificate becomes the owner of the is not a sale of whisky for beverage purposes whisky not only subject to the rights of the Government, within the meaning of the war prohibition act, but without; the right to remove it for beverage purposesJ except for export, as long as the war prohibition act and is not prohibited b}^ that act, This opinion remains in force. The Bale of the certificate, therefore, was cited by the Department of Justice in expressly negatives the idea that it is a sale for beverage response to an inquiry from a member bank purposes, or at least for the purpose of using or selling with reference to its" right to handle drafts the whisky as a beverage as long as its removal for beverage secured by warehouse receipts covering whisky. purposes is unlawful. I am of the opinion, that the sale of warehouse certificates on whisky held in bond, and subject to the pay- DEPARTMENT OF JUSTICE, ment of tax before it can be removed, is not a sale of August 21, 1919. whisky for beverage purposes within the meaning of the SIR: I have the honor to acknowledge receipt of your war prohibition act, 'and is not prohibited. letter of August 18, requesting a.a opinion as to whether Respectfully, the sale of warehouse certificates, representing whisky, A. MITCHELL PALMER. constitutes a violation of the war prohibition act. To the SECRETARY OF THE TREASURY. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

October 1, 1919. FEDERAL RESERVE BULLETIN. 969 WHOLESALE PRICES. in the prices of corn, barley, and alfalfa. The forest products subgroup shows the greatest In continuation of figures shown in the Sep- increase, namely, 15.8 per cent, from 166 to tember BULLETIN there are presented below 193, a new record, and all of the 11 commodities monthly index numbers of wholesale prices included in the group, with the exception of for the period January, 1919, to August, 1919, maple and spruce, increased in price. Relacompared with like figures for August of tively small increases occurred in the index previous years; also for July, 1914, the month numbers for the animal products and mineral immediately preceding the outbreak of the products subgroups, from 233 to the record Great War. The general index number is that figure of 236 and from 177 to 178, respectively, of the United States Bureau of Labor Statistics. the corresponding percentages of increase being In addition there are presented separate num- 1.4 and 0.8. Among the commodities included bers for certain particular classes of com- in the former subgroup, decreases in the prices modities in accordance with plans announced of hogs, poultry, and silk were more than "offset in previous issues of the BULLETIN. by increases in the prices of cattle, lambs, and Quotations for four commodities, namely, al- various classes of hides and wool, while among' cohol (denatured, 180 proof, New York), paper the commodities included in the subgroup of (newsprint, rolls contract), ginghams (Lan- mineral products a decrease in the price of tin caster, staple, 26J-inch), and bedroom chairs was more than offset by increases in the prices have been omitted. On the other hand, quo- of various sizes of anthracite coal, coke, copper, tations for hosiery (men's seamless cashmere) and foundry iron. r and onions (fresh, Chicago), which had been The index number for the group of producers7 dropped temporarily, have been secured for the goods increased 4.7 per cent, from 205 to 215, a month of August, and the commodities were new record. Decreases in price occurred only again included in the calculation of the index for a small number of commodities, among number for the latter month. Index numbers which may be noted lubricating oil, rope, talfor August are provisional, due to the fact that low, and oleo oil, while increases occurred for certain data were not received in time to render an extended list, in particular various classes them available for use in the calculations. of leather, cotton and worsted yarns, cotton- Wholesale prices during the month of August seed meal, bran, jute, linseed oil, rosin and reached a new high level. The general index turpentine, wood pulp, silver and copper wire, number of the Bureau of Labor Statistics for bar iron, and cast-iron pipe. that month stands at the record figure of 222, an The index number for the group of consumers' increase of 3 points over the figure for the goods increased 4.8 per cent, from 230 to the month of July. Increase is noted in the index record figure of 241. Decreases in the prices numbers for each of the three principal groups of fldur, coffee, corn meal, onions, lard, mess of commodities, although relatively smallest beef and mess pork, cottonseed oil, and print for the group of raw materials. The index cloths were more than offset by increases in the number for that group increased 1.5 per cent, prices of various foodstuffs, in particular various from 214 to 217, a new'record figure. Diversity meats, such as beef, veal, and poultry, salmon, is exhibited in the changes in the index numbers butter, milk, and eggs, potatoes, rice, beans, for the several subgroups included under the oranges, raisins, peanuts, vinegar, olive oil, head of raw materials. The index number for and canned peas, various classes of shoes, the farm products subgroup alone shows a various cotton textiles, such as denims, drilldecrease, from 261 to 251, or 3.8 per cent, due ings, shirtings and sheetings, and underwear, to decreases in the prices of cotton, wheat, oats, women's dress goods, tableware, soap, illumiand timothy, which were not offset by increases nating oil, and wrapping paper. 139895—19 5 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

970 FEDERAL RESERVE BULLETIN". October 1,1919. Index numbers of wholesale prices in the United States for principal classes of corrnnodities. [Average price for 1913=100.] Raw materials. All commodities Year and month. Producers' Consumers' (Bureau of Farm Animal Forest Mineral Total raw goods. goods. Labor Staproducts. products. products. products. materials. tistics index number). Julv, 1914 102 106 97 88 98 92 103 99 August, 1914.. 109 109 97 87 101 99 106 102 August 1915 111 104 92 91 100 98 100 100 August 1916 130 123 95 112 117 140 124 123 August, 1917 .. . .. 232 181 128 175 183 211 175 184 August, 1918.. 248 215 143 180 200 199 205 203 1919. Januarv. . . 231 208 147 179 196 196 216 203 February 224 210 148 175 194 192 205 197 March 237 217 149 173 199 190 210 201 April. 246 224 145 170 202 186 214 203 May 255 225 146 170 205 189 219 207 June. 250 217 156 173 203 196 217 207 Julv 261 233 166 177 214 205 230 219 Au gust 251 236 193 178 218 215 241 222 In order to give a more concrete illustration figures for August of previous years; also for of actual price movements there are also pre- July, 1914, the month immediately preceding sented in the following table monthly actual the outbreak of the great war. The actual and relative figures for certain commodities of average monthly prices shown in the table a basic character, covering the period January, have been abstracted from the records of the 1919, to August, 1919, compared with like United States Bureau of Labor Statistics. Average monthly wholesale prices of commodities. [Average price for 1913=100.] Co C r h n i , c N ag o o . . 3, Co N tt e o w n , O m r i l d ea d n li s n . g, n W o M rt h h in e e n a r t e n , a N p sp o o r li i . s n 1 . g , , W re h C d e h a w i t c , i a n N g t o o e . . r , 2, g C o a o t C d tl h e t i o , c s a c t g h e o e o . r ic s e , , H st h i e d e e e a rs s v , , y ' p C n a h a c i t c k i a e v g r e s o ' . , Year and month. p A b r u i v c s e e h r p a e g e l. e r p R t r i e i v c l e a e - . p A p r v i o c e u e r n a p d g e . e r p R ti r e v ic l e a e - . p A b ri v u c e s e r h a p e g l e e . r p R t r i e i v c l e a e - . p A b ri v u c e s e h r a p e g e l. e r p R t r i e i v c l e a e - . p A p r o i v c 1 u e e 0 n r a 0 d p g s e e . r p R t r i e i v c l e a e - . p A p r v i o c e u e r n a p d g e . e r p R t r i e i v c l e a e - . July 1914 ?(). 7044 114 SO.1331 105 SO. 8971 103 SO. 8210 83 S9.2188 108 SO.1938 105 August 1914 . 8035 131 1.0682 122 .9563 97 9.5200 112 . 2050 111 August 1915.. .7828 127 . 0895 70 1.3730 157 1.0963 111 9.2300 108 .2738 149 August 19 J 6 . . 8505 138 . 1417 112 1.4854 170 1.4706 149 9.8500 116 .2625 143 Wuust 1917 1.9181 312 . 2513 198 2.7875 319 2.2563 229 13.1750 155 .3200 174 August, 1918.. 1.6225 264 . 3038 239 2.2231 255 2.2325 226 17.8250 210 . 3000 163 Januarv 1919 1.3750 223 . 2850 224 2.2225 254 2.3788 241 18.4125 216 .2800 152 Fcbruarv, 1919 1.2763 207 . 2694 212 2.2350 256 2.3450 238 18.4688 217 .2800 152 March 1919 1.4588 237 . 2681 211 2.3275 266 2.3575 239 18.5750 218 .2763 150 April 1919 1.5955 259 . 2670 210 2.5890 296 2.6300 267 18.3250 215 . 2950 160 M.av, 1919. 1.7613 286 . 2947 232 2.5925 297 2.7800 282 17.7438 209 .3513 191 June 1919 1.7503 285 . 3185 251 2.4575 281 2.3613 239 15.4600 182 .4075 222 Julv, 1919 1.9075 310 . 3377 266 2.6800 307 2.2580 229 16.8688 198 .4860 264 August, 1919 1.9213 312 . 3125 246 2.5250 289 2.2391 227 17.6375 207 . 5200 283 H C og h s ic , a li g g o h . t, g W ra o d o e l, s , O s h c i o o u , r -£ e • d -§ . N H e e w m l Y o o c r k k , . Y N e f e l l l o w o o w r Y i n p o g i r , n k e . , s C to o v a t e i l d , , a e N n w e t w a h t r e a Y r c . o it r e k , , Co r a C u l, n i n b o c it i f u n m m na i i n t n i e . o , us, Year and month. Average Rela- Average Rela- Average Rela- Average Rela- Average Rela- Average Relaprice per tive price per tive price per tive price per tive price per tive price per tive pou 10 n 0 ds. price. pound. price. M feet. price. M feet. price. long ton. price. short ton. price. Julv 1914 $8.7563 104 $0.4444 94 $24.5000 101 842.0000 94 84.9728 98 $2.2000 100 August. 1914 9.1500 108 .4583 97 24.2500 100 42.0000 94 5.0805 100 2.2000 100 August, 1915 7.2650 86 .5714 121 20.5000 85 38.5000 86 5.0798 100 2.2000 100 August, 1916 10.4063 123 . 6857 146 23.7500 98 38.0000 85 5.5570 110 2.2000 100 August 1917 17.3688 205 1.3429 285 29.5000 122 57.0000 128 5.9797 118 4.4000 200 August, 1918 19.7750 234 1.4365 305 63.0000 141 6.5992 130 4.1000 186 Januarv. 1919 17.4125 206 1.1200 255 36.0000 149 63.0000 141 7.9500 157 4.1000 186 February, 1919 17.4688 207 1.0909 232 36.0000 149 64.0000 144 7.9500 157 4.0000 182 March, 1919 .. 18.8550 223 1.2000 255 36.0000 149 64.0000 144 7.9044 156 4.0000 182 April 1919 20.3813 241 1.0909 232 36.0000 149 64.0000 144 7.9045 156 4.0000 182 May, 1919 20.7000 245 1.0727 228 36.0000 -. 149 65.0000 146 7.9857 158 4.0000 182 Juno 1919 20.7800 246 1.1818 251 36.0000 149 68.0000 152 8.1174 160 4.0000 182 July, 1919 22.3875 265 1.2364 263 41.0000 169 73.0000 164 8.1881 162 4.0000 182 August, 1919 21.6125 256 1.2364 263 78.0000 175 8.3145 164 4.0000 182 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

October 1, 1919. FEDERAL RESERVE BULLETIN. 971 Average monthly wholesale prices of commodities—Continued. [Average price for 1913=100.] C t o as a ,' l , N Po o e rf a o h l o k n . - Coke, v C ill o e n . nells- i Co N el p e e p w e e t r r , Y o l i o i n t r i g k e o . , t, d N L es o e i w a lv d e , Y r p i o z i r e g k d , . , ' j Pe P t e ro n l n e s u y m lv , a c n r i u a d , e,! Pig iron, basic. Year and montli. "I : Rela- | Average Rela- Average Rela- I Average Rela- ! Average ! Rela- Average | Rela- Average tive price per tive price per tive i price per tive j price per j tive price per i tive ! price per price, pound. price. pound. price. ! barrel. price, long ton.! price. long ton. price, j short ton. I July, 1914 S3.0000 100 SI. 8750 77 SO.1340 85 SO.0390 j 89 | 81.7500 j 71 I S13.0000 ' August, 1914... 3.0000 100 1.8000 74 . 1250 79 .0390 j 89 | 1.6500 i 67 | 13.0000 •• August, 1915... 2.8500 95 1.6750 69 .1825 116 . 0500 114 1.3500 ! 55 i 14.0600 ; 96 August, 1916... 3.2500 108 2.6250 108 . 2600 165 . 0610 139 2.5000 I 102 18.0000 ; 122 August, 1917... 3.9080 130 10.0000 410 . 2900 184 1.0880 247 3.1000 ! 11O2T7 51.2000 ! 348 August, 1918... 4.6320 154 6.0000 246 . 2600 185 . 0805 183 4.0000 ! 163 32.0000 ! 218 January, 1919.. 4.0320 154 5. 7813 237 . 2038 130 . 0558 127 4.0000 ! 163 30.0000 204 February, 1919 4. 6320 154 5.2188 214 .1731 110 .0508 115 4.0000 i 163 30.0000 204 March, 1919 4.9000 163 4.4688 183 . 1509 96 . 0521 119 4.0000 I 163 28.9375 197 April, 1919 4.9000 163 3.9000 ! 160 .1530 97 .0507 115 4.0000 I 163 25.7500 175 May, 1919 4.9000 103 3.8437 158 . 1600 102 .0508 I 115 4.0000 i 163 25.7500 175 Juno, 1919 5.1400 171 4.0000 164 . 1756 112 .0530 | 120 4.0000 I 163 25.7500 175 July, 1919 5.1400 171 4.0950 168 . 2150 137 .0561 128 4.0000 j 163 25.7500 175 August, 1919... 5.1400 171 4.2188 173 .2281 145 .0579 132 4.0000 ! 163 25.7500 175 I n C o o r t t t h o e 1 n r 0 / n y 1 . c a o r n n e s s , , h L em ea l t o h c e k r , N so o l . e , 1. S P t B e it e e t s l s , s b e b u m i r ll g e e r h t , . s, S t t a e n b e k l u , , r p g P l h i a , t t t e s s - , j i j S h te e e a l, b r t r u h a r , i g l P s h , i . t o t p s- e n j | I W 2 o - r 3 s 2 b t ' e s r d e c d r y o . a ss r - ns, Year and month. Average I Rela- ; Average | Rela- i Average Rela- | Average Rela- Average Rela- Average Rela- ; price per : tive price per ! tive j price per tive ' price per tive price per tive price per tive ; : pound. ! price, i pound, j price. ! pound. price. ! pound. price. pound. price. pound. price. July,1914 , $0.2150 j 97; SO.3050 ! 108 ;819.0000 74 ! SO.0113 S30.0000 100 SO6500 84 A A u u g g u u s s t t , , 1 1 9 9 1 1 4 5 :; . . 2 1 0 6 0 7 0 5 9 7 0 6 . ! . . 3 2 1 9 0 5 0 0 i ! 1 11 0 0 5 i i 2 23 0 . . 1 2 3 5 0 0 0 0 9 7 0 9 ! j . .0 0 1 1 2 1 5 3 3 3 0 0 . . 0 0 0 0 0 0 0 0 1 1 0 0 0 0 8 6 5 5 0 0 0 0 1 8 1 4 9 August, 1916 ! .2575J 116! .3700 i 131 i44.2000 171 • .0345 35.0000 117 1000 142 August, 1917 , .4400 j 199: .5000 I 177 j86.0000 333 ! .0900 608 40.0000 133 6500 212 August, 1918 6400 289 ! .4900 i 174 I47.5000 184 : .0325 220 57.0000 190 1500 277 January, 1919 i .5000 220 .4900 ! 174 '43.5000 169 i .0300 203 57.0000 190 7500 225 February, 1919 ' .4164 188 .4900 174 43.5000 169 ! .0300 203 57.0000 190 7000 219 March, 1919 \ . 4132 j 187 .4900 174 42.2500 iG4 : .0291 197 ! 54.5000 182 5000 193 April, 1919 ! .4300 ! 194 i .4900 174 38.5000 149 : .0265 179 47.0000 157 5000 193 May, 1919 : .4826; 218 . 4900 174 38.5000 149 ! .0265 179 47.0000 157 5000 193 June,1919 ; .5608 1 253 . 5100 181 38.5000 149 ] . 0265 179 47.0000 157 6000 206 July,1919 ! .5912! 267! .5300 188 38.5000 14.9 i . 0265 179 i 47.0000 157 6000 206 August, 1919 ' . 6130 \ 277 . .5700 202 38.5000 149 i .0265 179 47.0000 157 6242 209 Flour, wheat, Beef, carcass, standard patents, Illuminating oil, Sugar, granugood native Coffee, Rio No. 7. 1914-1917, 1919; 150° lire test, lated, steers, Chicago. standard war, Chicago. New York. 1 New York. 1918,Minneapolis. Year and month. Average j Rela- Average ! Rela- Average Rela- Average Rela- j Average I Rela- i Average j Relaprice per ! tive prico per I tive price per tive price per tive ! price per \ tive j price per j tive pound, j price. pound. | price. barrel. price. pound. price. ! gallon, j price, pound, j price. July, 1914 •SO. 1350 104 79 U. 5938 100 SO. 1769 106 SO. 1200 | 97 , SO. 0420 August, 1914... . 1419 110 .0750 67 5.5125 120 . 1903 115 .1200 97 ! . 0649 152 August, 1915.. . .1325 102 . 0738 68 0.3100 i 138 . 1495 90 .1200 j 97 j . 0549 129 Angus{;, 1916.. . . 1375 106 . 0950 85 7.6050 I 166 . 1900 114 .1200 i 97 | . 0700 164 August, 1917... . 1713 132 . 0913 82 13.0688 | 285 .2413 145 .1200 ; 97 .0818 192 August, 1918.. . .2420 187 . 0853 77 10.2100 ! 223 .3225 194 .1750 ! 142 ! .0735 ! 172 January, 1919... . 2450 189 .1547 139 10.2750 I 224 .3494 210 .1750 ! 142 i .0882 i 207 February, 1919. .2450 189 . 1544 139 10.5500 j 230 .3338 201 .1750 i 142 ! .0882 i 207 March, 1919 . 2450 189 . 1602 144 11.2125 245 .3381 203 .1810 I 147 ! .0882 j 207 April, 1919 . 2450 189 . 1695 152 12.2150 260 .3595 216 .1850 ! 150 ! .0882 j 207 Ma v, 1919 . 2430 188 . 1931 173 12.4188 271 .3769 227 .1850 i 150 i 207 June, 1919 . 2025 156 . 2114 190 12.0125 262 229 .2000 j 162 " 207 July, 1919 . 2075 160 .2303 207 12.1550 265 230 .2050 I 166 207 August, 1919... .2350 j 181 .2150 193 12.0063 262 231 .2180 • 177 .0882 207 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

DISCOUNT AND INTEREST RATES. CO In the following tables are presented actual discount and interest rates New York for demand paper secured by prime bankers' acceptance, a type prevailing in the various cities in which the several Federal Reserve Banks of paper which made its appearance in the New York market some months and their branches are located during the periods ending August 15 and ago. Quotations for new type of paper will be added from time to time as September 15, 1919. Quotations are given for prime commercial paper, deemed of interestboth customers' and purchased in the open market, interbank loans, bank- In the majority of centers no marked changes in rates are noted during ers' acceptances, and paper secured by prime stock exchange or other cur- the period under review. In New York, however, a general decrease is rent collateral. Separate rates are quoted for paper of longer or shorter shown, while rates in St. Louis, on the other hand, show a slight upward maturities in the first-named and last-named classes. In addition, quota- tendency. High and customary rates for both classes of bankers' accepttions are given for commodity paper secured by warehouse receipts and for ances show a decrease in a number of centers, but no marked changes are cattle loans, as reported from centers in which such paper is current. exhibited by the rates for other types of paper. Comparison with rates Quotations are also given of rates charged on ordinary loans to customers prevailing during the period ending September 14, 1918, reveal decreases secured by Liberty bonds and certificates of indebtedness. Assistanceto in many centers in the rates for commercial paper purchased in the open customers to enable them to purchase such Government obligations has market, as well as less marked decreases in the rates for customers' commergenerally been extended at lower rates, either at the rate borne by such ' cial paper and in the low rates for collateral loans. obligations or at a rate slightly higher. The tables also show quotations in Discount and, interest rates 'prevailing in various centers. DURING 30-DAY PERIOD ENDING AUG. 15, 1919. Prime commercial paper. Bankers' acceptances, Collateral loans—stock exchange Secured by 60 to 90 days. or other current. Secured by Libery District. City. Customers'. Open market. In l t o e a rb n a s. nk C lo a a t n tl s e . w r a e r c e e h ip o t u s s , e c b e o r n ti d fi s c a a t n e d s etc. of indebt- 30 to 90 m 4 o t n o t h 6 s. 3 d 0 a t y o s 9 . 0 m 4 o n to t h 6 s. Indorsed. Unindorscd. Demand. 3 months. m 3 o n to t h 6 s. edness. II. L. C. II. L. C. H. L. a II. L. C. IT. L. C. JET. L. C. II. L, L,. C. >. C II. L. C. II. L. C. H. L. a N N N N N o o o o o . . . . . 3 4 2 5 1 . . . . . . . . . . . . . . . C C N R B B P P l h i u i o i e e c t n w f i s v t h f l t c s a a e o m i b Y l l d n n o a u o e o n n n r l r d a p g d k t h h i 2 i . . a . . . . . . . . 6 6 6 6 6 6 6 6 5 5 5 5 5 5 5 5 1 1 1 6 6 5 6 6 5 5 5 1 1 1 1 6 6 6 6 6 6 6 6 5 5 5 5 5 5 1 - 1 1 1 6 6 5 5 6 6 5 1 1 | 6 5 5 5 6 6 6 1 1 1 5 5 5 5 5 5 5 1 1 5 6 6 5 5 5 5 - * 1 1 } 1 5 5 6 5 6 6 6 1 1 1 5 5 5 5 5 4 5 1 1 5 5 5 6 5 5 5 1 1 1 1 -51 4 4 5 4 4 4 f * £ 1 A t 4 * 4 4 4 4 4 * f A 1 1 4 V -1 4 4 4 - 4 4 * A 4 1 * A & i • 4 4 5 4 5 4 f 1 § 1 4 4 4 4 4 4 1 A 1 1 1 , 4 V 1 - 4 4 4 4 4 - - f | $ & 1 6 6 6 6 6 6 6 8 1 4 5 6 5 4 5 5 51 6 ? 6 6 ? f 5 6 6 5 5 6 - * 6 6 6 5 5 f ! 6 6 6 6 5 5 6 6 1 6 6 6 6 5 6 5 6 6 6 6 6 * " 4 4 4 5 5 5 5 4 i 1 1 1 2 4 5 5 6 5 | 4 6 1 5 - f o Baltimore 6 51 6 6 51 6 6 5-1 6 I 6 51 6 516 6 5 6 6 6 51 6 51 41 4f No. 6... Atlanta 6 51 6 7 51 6 51 6 6 5 6 (5 5 6 516 6 5 6 6 6 51 6 6 41 6 Birmingham.. 8 6 6 8 6 6 5} 6 8 6 6 6 6 7 6 6 6 41 6 Jacksonville... 8 6 7 8 6 7 6 51 6 5h 6 7 6 7 7 6 7 7 5h6 6 6 8 6 7 8 6 6 New Orleans.. 7 5 51-6 7 5 5-J-6. 6 51 51-6 of 51-6 51 4& 6 4& 7 5" 6 6-61 6 -61 6 51 6 -7 6 41 5-8 No.7... Chicago 6 51 54-6 6 5J 5^-6 51 5* 5i-5i 51 551 5k-5] 4* 41 4-Hd 4A 41 4HHA 6 515H>' 54-6 51-6 6 51 51-6 6 5* 5-1-6 6 5 5-.V Detroit 6 6 6" 6 6 6 51 51 5| 51 5 4§ 41 4ft 4£ 41 44$$ 6 6 6" 6 6 51 6' No. 8... St. Louis 6 51 6 51 5* 5* 51 5 51 51 51 6 4-J 4} 6 4 6 5 t 6 6 42 54 Louisville 6 5 6 6 5 6" 51 51: 51 51 51 41 4A4A 41 6 5 6 5 6 6 5 6 6 £ 5" Memphis 6 5 6 6 5 6 6 5 6 6 5 - 6 Little Rock... 7 6 6 61 6 6 fH51 7 6 7 71 6 61 7 7 6 6 No. 9... Minneapolis... 51 51 51 6 5J 51 5h5151 H-5151 4ft 41 4* 4* 4* 41 6 5*6 6 51 " 51 51 51 5 51 No. 10.. Kansas City... 7 5 6 7 5 6" « 6 6 6 6 6 7 5 6 8 5"6 8 5 8 6 7-8 51 6 8 5 6 Omaha 61 51 6 61 51 6 6 5*51 6 5151 7 516 8 51 7 6 6 6 41 6 No. 11.. D D e al n l v as er 8 8 5 6 6 6 8 8 5 6 6 6 6 5 51 6 5 51 6 8 6 516 6 1 8 0 6 6 6 8 8 8 4 6 6 6 O El Paso 8 6 8 8 6 8 6 6 6 6 6 6 8 6 8 9 8 8 8 5 7 3- No. 12.. San Francisco. 6 5 55-6 6 5 51-6 5}5*51-51 51-515* 6 5 5-< 51 4-1 4§-5i 6 4-1 4-|-6 6 5 51-6 6 4f 6 Portland 7 6 6 7 6 6" 515*51 515151 41 41 41 6 6 6 7 6 6 Seattle 8 5 7 8 5 6 6 5 51 0 5 51 6" 41 5 4* 41 8 5 6 4f 7 Spokane 8 6 7 8 6 7 8 5151 4-16 Salt Lake City 8 6 7 8 6 7 51 51 51 51 51 51 8 6 1 Rates for demand paper secured by prime bankers' acceptances, high 6, low 41, customary, 41-6. 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 SEPT. 15, 1919. Prime commercial paper. Bankers' acceptances, Collateral loans—stock exchango Securedby CD 60 to 90 days. or other current. Secured by Liberty District. City. Customers'. Open market. I . n t l e o r a b n a s n . k C lo a a t n tl s e . w r a e r c e e h ip o t u s s , e c b e 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. 3 d 0 a t y o s 9 . 0 Indorsed. Unindorsed. Demand. 3 months. m 3 o n to t h 6 s. ii. L. a 77. L. C. IT. L. C. 77. L. C. 77. L. C. 77. L. C. L. a 77. L 77. L. C. 77. L. C. 77. L. C. N No o . . 2 1. . . . B N o e s w to Y n ork i.. 6 6 5 5 5 1 4 6 6 5 P 15 5^ J -5^ 5 6 } H 51 - * 5 1 i-3 5 6 4 4 5 i 55 5 "" 4 4A 4& h\ 5 H 1 4 4 1 41 4 - A 4] 6 6 6 6 5 b 4 5 6 4 41 1 4 4 3 J -5 Buffalo 6 5 6 5 6 P 5 oj-o? 5 6 34 54-6 6 5 6 5 6 No. 3.. Philadelphia. 6 5 65J 6 5-1 54 54 51 51 6 5 5 4A*1 5 6 6 54 6 44 5 No. 4.. Cleveland.. 6 5 6" 6 5 6 5 5 5 4A 4A 34 6 6 5 6 6 6 6 5 6 Pittsburgh. 6 54 54 6 54 54 5h 5\ 51 54 51 51 6 51 54 41 4^ 5" 6 6 54 6 6 6 6 5 54 Cincinnati.. 6 5 6 6 54 6 6 5 6" 6 5£ 6 6 5 51 4| 4-i 5 44 54 6 6 66 6 6 54 6 54 5 5 No. 5.. Richmond. 6 51 54 6 54 6 6 5 5£ 6 6 66 511 6 6 6 6 6 4$ 5 Baltimore.. 6 5-4 6 6 51 6 6 bh 51 6 51 6 54 6 6 54 6 54 54 No. 6.. Atlanta 8 5 6 8 5 6 6 5 6 6 54 6 6 54 6 5 6 7 5 6 5 6 8 5" 6 Birmington 8 6 6 8 6 6 8 5 6 5 6 8 6 8 6 6 6 4f 6 Jacksonville. 8 6 7 8 54 6 6 6 6 7 6 7 7 6 7 6 6 8. 6 8 6 8 8 6 6 New Orleans.. 7 5 54-6 7 54 6 6 51 6 6 6 64 6 61 5 54-6 61 44 5-6 No. 7.. Chicago 6 5 5^-6 6 5 5*-6 6 54 54 51-6 6 54 6 54 6 5 54 Detroit 6 54 6 6 54 6 6 5 54 \ 4^r 4ft 4** 4* 54 6 6 54 6 No. 8... M S L t o e . u m L is o p v u h i i l i s s le 6 6 6 5 5 5 1 4 4 0 6 6 4 6 6 6 o 5 53 | 4 , 6 6 54 6 6 o o 5 5 15 5 o 1 ^ 41 41 i 5 4* 6 5 5 4 f 6 5 i 4 6 54 i 6 6 5 6 6 5 6 6 6 6 6 6 4 5 4-5 * ; 5 5 4 54 N N o o . . 1 9 0 .. . . . M L K i a i t n n tl n s e a e s a R p C o o i c l t i k y s . . . . . . . . . 5 7 4 6 5 1 6 H 6 7 7 6 5 5 4 6 6 5 4 4 6 6 7 5 5 6 1 6 6 5 " * 4 6 A 4 5 & 4 6 1 6 5 6 6 6 5 4 6 6 6 6 V 8 - 6 5 6 6 6 4 8 6 6-7 6 8 5 5 J 4 5 6 4 " 7 5 6 4 5 54 4 H 5 6 Omaha 7 5" 6 6 54 6 7 54 6 5" 6 7 546 7 54 6 6 5^ 6 Denver 6 54 6 8 5 6 6 6 6 54 6 8 5 6 8 6 6 8 4$ 6 No. 11.. Dallas 8 5" 6 8 6 6 6 6 6 5 6 6 6 6 0 6 8 8 6 6 El Paso 8 6 6 8 6 8 6 6 6 8 6 8 6 6 8 6 8 8 8 8 8 6 8 No. 12.. San Francisco. 8 6 8 6 5 54-6 6 5 54 6 8 6 5 54-6 6 4| 6 Portland 7 6 6M 7 6 6 54 5-1 54 6 0 6 5 6 6. 6 6 7 6 6 Seattle 8 5 7 8 6 8 6 5 54 7 6 6 6 6 8 5 7 8 43 7 Spokane 8 6 7 8 6 7 54 51 51 6 6 6 5 7 8 6 8 8 4-4 6 Salt Lake City 8 6 7 8 6 7 54 5J 51 51 7 6 6 54 54 8 6 7 8 5 6 6 7" 1 Rates for demand paper secured by prime bankers' acceptances, high 5£, low 4J, customary 4jH>}. CO CO Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

974 FEDERAL RESERVE BULLETIN. October 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 September 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 be presented from time to time as reliable relative to the physical volume of trade. The figures are obtained. Live-stock movements. [Bureau of Markets.] Receipts. Shipments. C c m a a t l a t v r l e e k s e , a t 6 n s. 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 6 s. 0 H m m o u r a s l r e e k s s e , a t 4 s n 4 . d Total, all C c m a a t l a v t r l e e k s e , a t n 5 s d . 4 . m H a o r g k s e , t 5 s 4 . S m h a e r e k p e , t 5 s. 4 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 al d , s a . ll 1918. Head. Bead. Head. Head. Head. Head. Head. Head. Head. Head. August 2,010,422 2,485,775 2,163,284 75,924 6,735,405 849,153 871,381 1,323,809 74.503 3,118,846 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 1,440,329 4,404,751 1.131,805 82,526 7; 059,411 528,326 1,288,134 418,827 76,512 2,311,799 March 1,501,597 3,632,874 I', 216,988 68,938 6,420,397 563,893 1,272,654 481,907 64,332 2,382,786 April 1,751,943 3.668,210 1,388,732 50,770 6,859,655 698,599 1,107,411 575,136 49,634 2,430,780 May 1.822,410 3; 863,735 1.425,018 33,977 7,145; 190 788,086 1,181,745 614,375 34,658 2,613,764 June 1.580,256 3,812,466 1,685,236 40,067 7,118,025 709,637 1,373,824 828,046 36,889 2,048,396 July 2,007,266 3,998,836 2,177,940 48,691 7,232,735 706,843 963,662 997,338 43,738 2,711,581 August 2,019,139 2,103,609 3,211,331 81,917 7,415,996 894,816 690,821 2,014,267 74,268 3.674,172 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, Forth Worth, Indianapolis, Louisville, Wichita.] RECEIPTS. [Monthly average, 1911-1913=100.] Cattle and calves. Hogs. Sheep. Horses and mules. Total, all kinds. Head. Relative, Head. Relative, Head. Relative, Head Relative. Head. Relative, 1918. August 1,588,553 158 1,970,086 90 1,424,677 104 54,271 ! 118 5,037,5S7 109 1919. January 1,656,046 164 4,603,335 209 1,079.377 79 56,631 | 123 7,395,419 160 February 1,096,118 116 3,451,894 168 774', 881 61 48,786 •• 114 5.371,679 125 March 1,094,614 109 2,842,663 129 847,812 62 41,805 i 91 4', 820.924 105 April 1,255,379 125 2,823.484 128 970,070 71 3l',509 i 68 0,080; 432 110 May I', 262,065 125 3,049;223 139 934', 613 68 21,345 ! 46 5,267,246 114 June 1,122,782 111 3,061,838 139 1,116.003 82 28,418 i 62 5,329,041 115 July 1,527,881 152 2,411,539 110 1,558; 767 114 37,866 i 82 5,53fi,053 120 August 1,541,133 153 1.595,759 73 2,220,229 162 57,206 i 124 5,414.327 117 SHIPMENTS. 1918. August 652,440 160 599,577 124 751,886 51,923 127 2,055,826 143 1919. January 589,362 145 988,035 204 357,386 56,282 137 1,991,065 139 February 404,296 107 881,507 195 240,815 47,829 125 1,574,447 118 March 423,819 104 925,802 191 289,742 41'. 837 102 1.681,200 117 April 506,835 125 748,437 154 319,625 29,974 73 1'. 604,871 112 May 530,153 130 787,009 162 290,803 18,865 46 I', 626,830 113 June 503,354 124 L, 005,505 208 465,776 25.322 62 1,999,957 139 .July 515,071 127 691,283 143 694,492 32,836 80 1,934,132 135 August 650,252 160 455,705 94 1,352,252 49,996 122 2,508,205 175 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

October 1, 1919. FEDERAL RESERVE BULLETIN. 975 Exports 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. Bacon. Ha d m e s r s a , n c d u r s e h d o . ul- Lard. Pickled pork. Pounds. R ti e v l e a . - Pounds. R ti e v l e a . - Pounds. R ti e v l e a . - Pounds. R ti e v l e a . - Pounds. R ti e v l e a . - Pounds. R ti e v l e a . - Pounds. R ti e v l e a . - 1918. August 17,129,337 2,585 45.160,708 3,641 1,742,970 65 68,857,586 411 45,816,637 307 51,920,658 118 3,032,954 69 1919. January 12,636,060 1,907 17,436,495 1.406 0,030,937 226 101,000.122 603 54,846,433 367 37,850,338 86 2,273,683 51 February... 8,151,723 1,318 13,729,993 l', 186 3,635,120 146 114,842; 525 735 49,283,053 354 68,972; 779 16S 1,956.362 47 March...... 8,997,973 1,358 li; 651/276 I', 181 3,749,394 140 151,086,397 902 85,712,426 574 97,239,435 221 2,141,508 48 April 2,896; 759 437 21,639,915 1,744 2.673.681 100 141,814,255 847 109,569.968 734 86,555.951 197 2.494,454 56 May 5,669,232 856 14,872.987 1.199 2,957', :163 111 68,957; 465 412 49,707.874 333 55,807; 234 127 2.095,072 47 Juno 6,574; 766 992 15.212; 094 1.226 4,768; 308 178 172,441,100 1,0:50 96,854', 552 649 114.328.804 260 3;131.639 71 July 5,392,104 814 8'. 680,524 '700 3,320,564 125 117,679,193 703 47,452.834 320 68', 163! 734 155 2,392,515 54 August 2,894,361 437 8,'075,366 651 2,494,113 93 84,150,778 502 40,147,'727 269 48,968; 628 111 2,117,796 48 Receipts of grain and flour at 11 interior centers. [Chicago^Cleveland,, Det_rrooiitt,, Duluth, Indianapolis, Kansas City, Little Rock, Louisville, Memphis, Milwaukee, Minneapolis, Omaha, Peoria, St. Louis, Spokane, Toledo, Wichita; receipts of flour not available for Cleveland. Detroit, Indianapolis, Louisville. Omaha, Spokane, Toledo, and Wichita.] [Compiled from reports of trade organizations at these cities.] [Monthly average, 1911-1913=100.] Wheat. Corn. Oats. Rye. Barley. Total grain. Hour. TotaAf rain and Bushels. R ti e v l e a . - Bushels. tivf BusMs- R ti e v l e a . - Bushels. tive. Bushels. R ti e v l e a . - Bushels.!*^ Barrels.!^- Bushels. | **£ i 1918. August 91,448,672 33916,389,047 73J51,129,614 253 2,235,394 202 4,490,201 63 165,692,928 213 2,238,943 114:175,768,172 203 1919. I January... 24,652,641 9128,731,387 128;22,945,659 114 5,615,054 507 8,943,782 125 90,8S8,523[ 117 1,396,888 7197,174,519 112 February.. 14,049,055 5613,034,8521 62 15,961,423 ! 2,406,029 233 6; 556; 5941 98 52,007,953' 72 1,032.36S 5656,653,609 70 March 13,768,496 5113,431,7971 60:17,076,822 85| 4,955,1301 448 11,723,691 163 60,955,936i 78 1,485; 320 76!67,639;876 78 April 11,208.305 4218,301,721 82 20,063,678 99 5,493,493 "~ 9,634,405! 134 64; 706,602! 831,990,349 10273,663.173! 85 May 11,625; 657 4310,301,200 46:19,206,465 95 4,280,9111 387 8,416,141i 117 53,830,374\ 69 2,447,200! 125J64,842', 774 75 June 8,125,031 30 21,098,146 94:24,576,968 122 2', 79i; 618! 252 12,878,517; 180 69,470,283" 891,894,599! 97177,995,979 90 July 49,612,115 18412,549,219 56:25,233,109 125 3,105,486 "2 81 8", 6"2' 7,091' 120 99,127,020! l271,572,420i 80:106,202,910: 122 August 80,714,559 299 8,503,282 38.29,774.582 147 3,824,263 345 6,638,871 931129,455,557 166i2,283,145! 1171131,738,702 152 1 Flour reduced to its equivalent in wheat on "basis of 4£ bushels to barrel. Shipments of grain and flour at 14 interior centers. [Chicago, Cleveland, Detroit, Duluth, Kansas City, Little Rock, Louisville, Milwaukee, Minneapolis, Omaha, Peoria, St. Louis, Toledo, Wichita; shipments of flour not available for Cleveland, Detroit, Louisville, Omaha, Toledo, and Wichita.] Wheat. Corn. Oats. Rye. Barley. Total grain. Flour. Bushels. Bushels.!^ Bushels. R ti e v l e a . - Bushels. R ti e v l e a . - Bushels. i : t R iv el c a . - Bushels. R ti e v l e a . - Barrels. I Bushels. t R iv e e la . - _(__„ 1918. August 38,853,689 252| 9,131,678: 64:23,092,361 152 773,548 109 807,119| 2172,658,395 147 3,831,826 113jS9,901,612 139 1919. January... 9,934,531 64!l3,488,509i 95!19,769,237 130 794,028 4,718,631! 12148,704,996 99 2,796,463 83:61,289,080 95 February.. 8,876,844 62 8,649,063: 65113,603,691 96 404,365 61 6,006,178! 165 37,540,141 81|1,932,258 6L46,235,302 77 March 14,857,872 96 7,544,393; 5316,183,222 1073,720,930 526 6,049,703 155 48,356,120 9813,039,020 9062,031,710 96 April 30,764,._. 19915,708,8421 11116,019,086 105 8,143,5801,150 6,632,763! 170 77,268,599 156|3,532,772 104193,166,073 144 May !31,901,327 207 7,784,931: 55 17,069,617 112 7,525,7941,0631 6,677,508! 17170,959,177 144(4,320,146 128190,399,834 140 June i 8,751,872 53. 8,629,052! 6115,638,317 103 2,740,593 387i 9,588,195! 246 44,74S, 029 9113,130,826 9258,836,746 91 July :12,423,422| 81: 8,102,275; 57115,628,503 103 1,546,100 218! 9,133,004i 234 46,833,304 9512.589,176 76^8,484,596 90 August.... 136,986,491 240 5,135,459, 3617,919,623 118 1,436,377 203| 5,028,674j 129 66,506,624 135 3,805,273 112!83,630,353 129 1 Flour reduced to its equivalent in wheat on basis of 4£ bushels to barrel. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

976 FEDERAL RESERVE BULLETIN. October 1, 1919. 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. Tota n l o g u ra r. i i n and 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. R ti e v l e a . - Bushels. tim B^ls. R ti e v l e a . - Bushels. t R iv e e la . - 1918. August 23,930,107 190 1,473,105 41 2,970,341 170,847 120 714,103 43 29,258,503 129 589,303 56 31,910,367 116 1919. January... 768,801 78 411,366 9,275,187j 195 566,191 1,738,326 105 22,759,871 100 2,026,216 194 31,877,978 116 February.. S05,81l! 66! 783,263 4,713,794 2,299,664 1,734 995,454 64 16,597,986 78!l,302,061 134 22,457,261 88 March 789,851! 109 636,127 3,254,914 3,880,424 2,731 2,285,954 1~38^ 2233,847,270 1051,644,676 157 31,248,312 114 April 581,074 100 089.425 4,604,521 97 5,069,529 3,568 1,853,372 11225,197,921 111:2,549.370 244 36,670,086 134 May.... 157,852 112 ,58S;.57li 5,642,176: 119 7,061,048 4,970 3', 561,412 21532,011,059 14l;2,535;547 243 43; 421,021 158 June 260,075 81 ,051,177 10,249,644! 216 3,670,055 2,583 6,564,620 396 31,695,571 14012,340,158 224 42,326,282 154 July.... 806,227 46 901,842 6,959,186! 1-4"6! 1,479,995 l,042j 9,723,852 586 24,871,058 HOll, 514,135 145 31,084,666 116 August 902,757 214; 815,132 23 5,676,984 j 119 64,510 45} 4,993,39;" 30138,452,778 1691L, 385,762 133 44,688,707 163 i I I 1 Flour reduced to its equivalent in wheat on basis of Q 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. 1918. August 16,041,604 649,169 2,464,705 153,275 1,720,251 21,029,004 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 3,930,465 24,829,633 March 12,732;472 346,543 5,650,120 1,920,348 4,403,665 25,053,148 April 7,448,992 464,503 5,335,971 3,434,873 5,420,013 22,104,352 May 7,913,162 448,020 4,047,059 1,690,860 4,263,510 18,362,611 June 4,180,160 214,079 5'. 475,856 514,252 6,783,798 17,168,145 July 5,557,644 265,196 3', 760,063 867,491 5,528,176 15,978,570 August 17,396,269 155,491 2,216,989 578,250 5,414,183 25,761,182 NOTE.—Figures for San Francisco include also stocks at Port Costa and Stockton. Colion. [New Orleans Cotton Exchange.] [Crop years 1911-1913=100.] Sight receipts. Port receipts. Overl m an e d n t m . ove- Ameri t c a a k n in s g p s i . nners' St i o n c t k e s r i a o t r p t o o r w ts n s a n a d t close of month. Bales. R ti e v l e a . - Bales. R ti e v l e a . - Bales. R li e v l e a . - i Bales. R ti e v l e a . - Bales. R ti e v l e a . - 1918-19. August 401,860 32 226,242 50,482 372,394 82 1,306,868 111 September 988,156 79 536,190 42,028 40 352,025 77- 1,644,690 140 October 1,632,921 130 779,371 158,768 151 697,623 151 2,189,007 186 November 1,710,666 136 641,283 217,450 207 1,007,892 222 2,745,815 233 December 1,709,734 136 690,782 157,038 149 929,491 205 2,697,141 229 January 1,392,468 111 705,493 157,270 149 705,353 155 2,637,908 224 February 768,444 61 477,696 106,368 , 101 383,157 84 2,689,379- 228 March 601,858 48 460,066 75,489 ! 72 202,556 45 2,604,549 221 April 494,106 39 462,363 79,700 I 76 149,566 33 2,484,852 211 May , 536,139 43 502,082 99,041 ! 94 193,016 42 2,417,631 205 Season, total 11,724,104 78 6,735,898 61 I 1,528,262 I 121 5,850,715 107 1,928,959 164 1919-20. August 305,143 24 238,271 41,472 i 39 302,238 67 1,412,048 120 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

October 1, 1919. FEDERAL RESERVE BULLETIN". 977 California shipments of citrus and deciduous fruits. Total Oranges. Lemons. Total citrus fruits. deciduous fruits. Carloads, i Relative. Carloads. Relative. Carloads. Relative. Carloads. 1918. August 767 31 732 181 53 9,126 1919. January 3,120 128 531 131 3,651 128 109 February 3,180 139 658 174 3,838 144 198 March 5,113 200 897 221 6,010 211 67 April 5,450 223 1,038 256 6,488 228 36 May 5, SS8 211 1,501 371 7,389 259 276 June 3,618 149 1,520 375 5,168 181 896 July 2,568 105 1,038 256 3,606 127 4,199 August 1,785 73 436 108 2,221 78 6,601 Sugar. [Data of International Sugar Committee for ports of Boston, New York, Philadelphia, Savannah, New Orleans, Galveston, San Francisco.] [Tons of 2,210 pounds.] Raw stocks ;! Raw stocks Receipts. ! Meltings. at close of j Receipts. Meltings. at close of month. month. 1918. ;! 1919. August 218,690 263,383 100,392 h April 450,938 387,518 | 185,315 !; May 471,205 446,685 201,301 1919. |, Juno 429,617 493,293 151,692 January 213,806 197,115 66.189 j: July 391,557 435,247 115,341 February 389,815 337,420 122'757 I: August 333,686 356,048 85,650 March./. 355,710 361,010 100.889 !i Sugar. [Data for ports of New York, Boston, Philadelphia.] [Weekly Statistical Sugar Trade Journal.] [Tons of 2,2-10 pounds. Monthly average 1911-1913=100.] Receipts. Meltings. c R lo a s w e o s f to m ck o s n a th t . Receipts. Meltings. c R lo a s w e o s f to m ck o s n a th t . Rela- i Rela- Rela- Rela- Rela- Rela- Tons. tive. I Tons. tive. Tons. tive. Tons. tive. Tons. tive. Tons. tive. 1918. 1919. August... 159,252 | 87 j 175,000 j 95 •9,375 • 23 April 318,492 j 173 277,000 151 107,582 62 May j 325,730 ! 177 307,000 167 126,318 73 1919. ! Jurio ! 271,875 j 148 313,000 171 85,193 49 January.. 172.054 93 I 147,000 : 36,544 21 Julv 264,782 i 144 292,000 159 57,975 34 February. 283,1.72 165 : 229,000 ' 134 90', 716 53 August 246,419 j 134 229,000 125 75,39-1 44 March 232,471 126 : 201,000 142 62,187 36 Naval stores. [Data for Savannah, Jacksonvile, and Pensacola.] [In barrels.] [Compiled from reports of trade organizations at these cities.] Sp p ir e it n s t i o n f e t . ur- Rosin. Spi p r e it n s t i o n f e t . ur- Rosin. !Stocks at Stocks at Stocks at Stocks at Receipts.1 close of Receipts. close of Receipts. close of Receipts. close of month. month. month. month. "II" 1918. 1919. August 20,054 ; 121,818 257,085 April... 8,379 75,546 19,493 225,657 j May.... 26,358 47,115 50,435 229,404 1919. ! June 31,904 33.733 63,450 221,612 January 7,645 125,541 34,835 285,808 \- July.... 27,747 30;656 77,062 235,707 February 5,583 121,676 22,154 259,974 |i August. 21,013 24,756 74,402 203,812 March 4,226 97,450 14,338 243,813 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

978 FEDERAL RESERVE BULLETIN. October 1,1919. Lumber. [From reports of manufacturers' associations.] [M feet.] Southern pine. Western pine. Douglas fir.. Eastern white pine. North Carolina pine. Num- Num- Numb m e i r l l o s f . Pr t o io d n u . c- m S e h n ip ts - . mills, i tion. m S e h n ip ts - . mills.! m S e h n ip ts - . b m e i r l l o s f . Pr ti o o d n u . c- m S e h n ip ts - . m be i r l l o s f . Pr t o io d n u . c- m S e h n ip ts - . !_ 1918. August 202 391,648 437,776 44,47 151,156 109,402 130 i 292,200 275,000 95,942 51,327 31 24,118 34,377 1919. January 200 330,137 325,241 21,49 40,354 68,910 122 225,688 227,129 7,565 15,172 23,898 February... 195 328,069 309,494 24,48 46,037 71,103 122 228,031 238,035 6,802 17,081 25,806 18,034 March 198 378,752 361,125 27,48 71,426 81,328 120 251,650 255,544 7,118 17,525 32,110 22,672 April 203 397,005 397,677 43,49 124,341 97,679 114 264,623 266,308 11,431 14,020 22,369 21,877 May 205 414,899 460,238 45,48 140,037 127,730 111 345,984 388,803 24,548 17,136 31 1-1,375 17,393 June 204 360,084 426,193 49 156,561 139,923 115 300,410 327,364 29,741 26,525 20,733 28,865 July 206 401,939 466,786 48 114,853 140,680 114 268,634 301,050 27,382 22,470 22,326 34,191 August 204 417,036 423,002 48 152,748 140,236 118 416,422 397,290 20,247 26,839 27,177 30,159 RECEIPTS AND SHIPMENTS OF LUMBER AT CHICAGO. [Chicago Board of Trade.] [Monthly average 1911-1913=100.] Receipts. Shipments. Receipts. Shipments. M feet. ! 1 R ti e v l e a . - M feet. R ti e v l e a . - M feet. R ti e v l e a . - Mfeet. R ti e v l e a . - 1918. 1919, August 208,963 ! 78,707 103 April 144,253 59,055 77 May 162,365 66,001 86 ^i?^ 1919. June 184,862 80,762 105 January 134,604 | 47,922 July 200,148 90,134 118 February 97,511 ! 49 45,585 August 170,385 87,953 115 March 124,040 46,902 I Coal and coke. [Bituminous coal and coke, U.S. Geological Survey; Anthracite coal, Anthracite Bureau of Information.] [Monthly average, 1911-1913=100.] Coke, estimated montly production. Bi t p t i u r m o m d a i t u n e c d o t u io s m n c . o o a n l t , h e l s y - A m n e th n r t a s c o i v te e r c o 9 a r l o , a sh d i s p . - Beehive. By-product. Total. Short tons, j Relative. Long tons. Relative. Short tons. Relative. I Short tons. Relative. Short tons. Relative, 1918. August | 55,732,092 150 7,180,923 128 2,657,022 102 2,387,675 271 5,044,747 144 1919. January 41,473,000 112 5,934,241 105 2,401,567 92 ii February i 31,497,000 91 3,871,932 74 1,822,894 75 \\ -6,779,4 257 12,772,392 122 March j 33,719,000 i 91 3,938,908 70 1,768,449 68 jJ April ! 32,164,000 ' 87 5,224,715 93 1,316,960 50j J M J A u u u a n ly g y e u st 4 3 4 3 2 6 2 7 , , , , 8 8 9 5 8 4 0 4 3 6 6 7 , , , , 0 0 0 0 0 0 0 0 0 0 0 0 i 1 1 1 9 0 1 1 9 1 6 6 6 5 6 5 , , , , 1 0 7 6 4 5 1 1 4 9 2 1 , , , , 5 1 3 9 9 4 3 1 1 5 4 4 1 1 1 1 0 0 0 0 1 9 0 8 1 1 1 1 , , , , 1 1 5 8 3 7 1 0 5 0 2 8 , , , , 8 7 1 5 4 5 7 9 0 2 8 5 4 6 4 5 3 9 5 8 T Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

October 1, 1919. FEDERAL RESERVE BULLETIN. 979 Movement of crude petroleum in United States. [U. S. Geological Survey.] [Barrels of 42 gallons each.] Stocks at end Stocks at end Marketed. of month. Marketed. of month. Barrels. Relative. Barrels. Barrels. Relative. Barrels. 1918. 1919. August 30,645,000 160 139,472,000 ! April : 29,310,000 153 132,694,000 ' May ! 29,339,000 153 132,165,000 1919. June ! 31,239,000 163 135,646,000 January 29,869,000 156 129,558,000 July i 33,521,000 175 141,742 000 February 26,511,000 138 128,910 000 August i 33,986,000 177 137,891,000 March 30,412,000 159 131,110,000 Total output of oil refineries in United States. [Bureau of Mines.] Crude oil run Gasoline Kerosene Gas and fuel Lubricating (barrels). (gallons). (gallons). (gallons). (gallons). 1918. July ; 29,170,718 332,022,095 156,828,826 658,439,682 79,303,107 1919. i January i 26,987,332 303,710,556 158,501,260 589,630,056 68,304,613 February : 25,232,876 283,518,194 164,181,787 553,853,753 62,503,072 March ! 27,866,775 311,306,755 170,290,930 574,774,158 67,063,995 April 27,775,217 319,807,838 183,453,728 588,808,408 70,954,128 May ' 30,207,227 354,472,377 190,345,026 652,106,738 76,442,252 June 28,920,764 338,336,985 178,974,224 632,205,805 64,636,153 July 31,202,522 342,491,757 205,727,289 638,185,469 67,037,414 Stocks at the close of month. 1918. July 31 14,026,525 349,928,604 432,807,129 519,012,839 136,460,207 1919. Jan. 31.. 15,380,185 383,212,692 332,393,181 646,411,414 158,370,431 Feb. 28.. 14,820,601 458,449,187 303,062,436 692,816,000 152,297,163 Mar. 31.. 15,10C), 361 546,062,429 294,677,623 749,067,806 165,495,254 Apr. 30.. 15,184,844 593,616,170 276,356,837 807,895,498 170,122,088 May 30.. 16,372,314 594,035,688 244,635,631 788,740,572 173,754,109 June 30.. 16,775,723 593,896,610 252,542,434 811,790,637 175,384,775 July 31.. 15.304,915 514,919,358 279,855,061 817,809,519 173,881,303 Iron and steel. [Groat Lakes iron ore movements, Marino Review; pig iron production, Iron Age; steel ingot production, American Iron and Steel Institute.] [Monthly average, 1911-1913=100; iron ore, monthly average, May-Nov., 1911-1913=100.] Iron ore shipments Unfilled orders U. S. from the upper Pig iron production. Steel Corporation Lakes. at close of month. Gross tons. Relative. Gross tons. Relative. Gross tons. Relative. 1918. August. 9,725,331 161 3,389,585 146 129 8,759,042 166 1919. January... 3,302,260 143 3,082,427 130 6,684,268 127 February.. 2,940,168 136 2,688,011 120 6,010,787 114 March 3,090,243 133 2,662,265 110 5,430,572 103 April 1,412,239 2,478,218 107 2,239,711 4,800,685 91 May 6,615,341 109 2,108,056 91 1,929,024 4,282,310 81 June 132 ! 2,114,863 91 2,219,219 92 4,892,855 93 July 9,173,429 lol ! 2!28541 105 2,508,176 104 5,578,661 106 August 4,423,133 73 | 2,743,388 118 2,746,081 114 6.109,103 116 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

980 FEDERAL RESERVE BULLETIN. October 1, 1919. Imports of pig tin. [Department of Commerce.] [Monthly average, 1911-1913=100.] Pounds. Relative. Pounds. Relative. 1918. 1919. August . 16,317,437 180 March 8,284,970 91 April... 504,903 6 1919. May 449,270 5 January 8,461,444 93 June . 112,000 1 February. 6,271,977 74 July 113,120 1 August . 9,872,459 109 Baw stocks of hides and skins. [Bureau of Markets.] [In pieces.] C hi a d t e tl s e . Calfskins. Kipskins. Goat. Kid. Cabretta. Sh l e a e m p b a . nd 1919. Jan. 31 5,601,700 1,253,642 492,353 4,238,026 241,554 601,686 6,835,383 Feb. 28 5,584,730 1,244,720 418,339 5,670,216 226,760 843,341 8,826,399 Mar. 31 4,949,791 1,026,482 366,817 7,831,595 181,951 559; 576 7,863,313 Apr. 30 5,009,961 1,606,570 367,528 11,976,556 634,482 1,520,350 8,970,912 May 31 4,549,004 2,273,368 386,244 15,121,868 1,246,075 2,044,524 8,039,531 June 30 4,696,332 2,285,015 558,033 16,691,195 2,521,016 1,697,754 8,118,702 July 31 4,966,081 2,389,368 554,516 15,589,9-14 1,964,828 2,767,694 6,815,100 Aug. 31 4,654,085 1,605,811 416,391 14,408,726 759,70S 2,236,349 5,251,302 Textiles. [Silk, Department of Commerce; cotton, Bureau of the Census; wTooool,l , BBuurreeaauu of Markets; idle machinery, January-September, 1918, inclusive, National Associattiioonn ooff WWoooo;l Manufacturers.] [Cotton, monthly average crop years 1912-1914=100; silk, monthly average 1911-1913=100.] Percentage of idle woolen machinery on first of month to total reported. Cotton consump- Imports of raw silk. tion. Cotton "j spindles Wool con- Looms. Spinning spindles. active sumption during (pounds). Bales. Relative.! month. th W a i n d e 5 r 0- 5 U 0 n -i d n e c r h S c e a t r s d o s. f Combs. Woolen. Worsted, i j Pounds. Relative. inch reed reed space. space. 1918. i August I 534,971 119 I 33,601,305 51,516,457 12.2 14.3 6.0 10.2 6.6 15.3 ! 3,813,595 186 1919. ! January ' 556,721 124 ! 33,856,472 32,573,970 40.3 32.6 32.2 30.7 36.5 37.5 1,461,827 71 February i 433,516 103 i 33,282,593 23,186,818 52.3 41.5 38.7 39.8 41.1 48.6 1,742,812 91 March./. i 433,720 96 j 32,642,376 29,320,063 58.1 42.4 39.1 47.8 j 41.8 52.7 1,784,412 87 April ! 475,753 106 I 33,213,026 39,159,945 48.4 38.9 26.5 34.2 28.4 36.1 2,988,838 146 May i 487,998 109 ! 33,556,011 45,084,834 36.6 32.9 17.1 22.5 ! 16.8 25.8 4,878,646 238 June : 474,407 105 ; 33,943,405 48,849,892 29.6 26.6 15.4 12.8 ! 15.2 21.1 3,848,354 188 July I 509,793 113 j 34,184,407 54,973,093 22.0 26.0 9.7 7.6 I 8.9 13.5 5,202,407 254 August j 502,536 112 ! 34,187,310 48,938,476 22.1 24.9 9.4 6.5 8.9 10.9 3,802,500 186 September... 19.9 22.8 8.1 5.5 7.9 12.8 Production of ivood pulp and paper. [Federal Trade Commission.] [Net tons.] W pu o l o p d . p N r e in w t s . Book. b P o a a p r e d r . W pi r n a g p . - Fine. W pu o l o p d . p N r e in w t s . ! Book. b P o a a p r e d r . W pi r n a g p . - Fine. ! j 1918. 1919. August 262,377 113,731 76,330 178,725 61,861 34,735 April 284,984 116,278 67,628 138,802 48,158 22,470 May 294,067 105,819 76,821 151,651 56,579 25,010 1919. June 277,142 114,896 71,938 152,957 60,656 27,122 January... 283,270 116,154 70,443 140,859 50,490 27,675 July 260, 685 113,929 75,613 169,593 63,769 30,036 February.. 238,228 103,248 62,616 125,208 45,480 24,600 August 260,987 113,413 82,737 189,782 64,861 33,122 March 278,675 114,746 63,699 136,175 23,514 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

October 1, 1919. FEDERAL RESERVE BULLETIN. 981 Sale of revenue stamps for manufactures of tobacco in the United States (excluding Porto Rico and Philippine Islands). [Commissioner of Internal Revenue.] I Cigars. Cigarettes. 1 Cigars. Cigarettes. Chewing i Chewing and smok- 1 and smoic- Large. Small. Small. ing tobacco. Large. Small. Small. ing tobacco. 191S. Numher. Number. Number. Pounds'. 1919. Number. Number'. Number. Pounds. July 634,609,533 79,237,849 3,796,878,822 36,607,578 : March 540,098,351 84,493,873 3,815,079,275 29,227,678 1 April 510,357,494 73,314,273 2,650' 1.82,742 29,883,710 1919. : May 551,659,7-19 57,611,547 2.767.699,400 33; 340,102 January 518,706,482 72,458,974 3,079,212,253 29,308,616 : June 576,976', 572 A 8' 855,070 3', 140', 393,217 31,312,150 February 476,329,947 60;138,630 3,126,274,662 27,472,269 i July 569,965,088 47,290,267 3,585,111,783 33,838,667 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 o c 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. Numher. Numocr. Number. Number. Numher. 1919. Number. Number. Number. Number. Number. August 214 77 2,437 4,847 7,284 April 107 3(5 7,777 7,373 15,150 Mav 207 31 4,573 8; 533 13,106 1919. June 160 •14 1,785 5,307 7,092 Januarv. „„•' 282 84 8,172 3,635 11,807 Julv 121 73 2,777 6,936 9,713 February 135 ] 64 6,623 4,657 11,280 August 160 173 18,509 5,015 23,524 March 258 123 5,978 5,795 11,773 Vessels built in United States, including those for foreign nations, and officially numbered by ike Bureau of Navigation. [Monthly average, 1911-1913=1100.] Number. Gross Relative, v Number. Gross Relative. tonnnge. tonnage. 1918. "l 19.19. August 177 295,849 1,224 j: 201 375,605 1,554 'fyf av 250 395,408 1.636 1919. June 272 422,889 1,750 Januarv 132 264,346 1,094 f July 2-io 397,628 1 645 February 135 271,430 1,203 i' 238 455,338 1,884 March .. 186 298,005 1,233 ' Tonnage of vessels cleared in the foreign trade. [Department of Commerce.] [Monthly average 1911-1913=100.] Net tonnage. Per Net tonnage. ; Per cant- ! cent- American. | Foreign. Total. R ti e v l e a . - A ca m a n o g f o e t r o i - i | • i R flVm ela-! American, j I Foreign. Total. i | i ! R ti e v l e a . - i ! I A ca a m o n g e f e t r o i- R ti e v l e a . total. ! I I total. | 1918. 1919. August 2,332,577 2,808,466 5,141,013 132 45.4 179 !April | 1,744,753 ' 2,058,220 3,802,973 j 98 45.9 181 1919. J M u a n y e ' j 2 2 , , 3 4 3 2 9 4 , , 3 8 2 3 0 7 ( j 2 2 , , 4 5 6 1 9 1 , , 1 5 9 0 4 1 4 4 , , 8 8 5 9 0 4 , , 8 03 2 1 1 | 1 1 2 2 6 5 i 4 49 8 . . 2 5 1 1 9 9 1 6 ' January... 1,166,391 1,896,123 3,062,514 38.1 151 July 2,362,571 : 2,920,247 5,282,818 136 : 44,7 177 February.. 1,262,487 1,671,070 2,933,557 43.0 170 August 2,957,249 i 2,797,818 5,755,067 148 • 51.4 203 March 1,161,416 1,737,171 2,898,587 40.1 158 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

982 FEDEKAL RESERVE BULLETIN. October 1,1910. Net ton-miles* revenue and nonrevenue. [United States Railroad Administration.] 1918. i August 40,776,125,000 28,629,739,000 32,440,708,000 1919. 31,953,366,000 January 30,383,169,000 34,914,294,000 February 25,681,943,000 36,361,653,000 March..: 28,952,925,000 Commerce of canals at Sault Ste. Marie. [Monthly average May-November, 1911-1913=100.] EASTBOUND. Grain w , o h t e h a e t r . than I ! Wheat. Flour. Iron ore. Total. Rela- ! Rela- Rela- Rela- Rela- Bushels. tive. ! Bushels. tive. Barrels. tive. Short tons. tive. Short tons. tive. i 1918. August 1,360,698 15 501,050 846,140 73 9,507,067 160 9,743,473 139 1919. April 4,176,041 16,729,000 1,139,326 1,756,266 May 9,370,374 105 29,096,116 151 910,524 6,622,227 112 7,895,542 113 June 6,694,901 75 6,402,051 33 1,031,630 8.004,897 135 8,554,979 122 July 7,100,008 SO 2,391,840 12 915,420 8j 912,609 150 9,343,396 128 August 5,284,741 1,487,218 935,700 4,727,994 80 5,080,651 72 WESTBOUND. Hard coal. Soft coal. Total. Total freight. Short tons. R ti e v l e a . - Short tons. R ti e v l e a . - Short tons. R ti e v l e a . - Short tons. R ti e v l e a . - 1918. August , 299,555 97 2,517,603 131 3,046,328 122 12,789,801 135 1919. April 142,864 415,824 616,897 2,373,163 May 248,263 2,239,738 117 2,670,784 107 10,566,326 111 June 227,200 73 2,266,984 118 2,664,437 107 11,219.416 118 July 344,462 111 2,037,265 106 2,572,756 103 11,916,152 125 August 185,387 60 1,189,558 62 1,529,310 61 6,609,961 70 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

October 1, 1919. FEDERAL RESERVE BULLETIN. 983 BANK TRANSACTIONS DURING AUGUST-SEPTEMBER. In the table below are shown debits to indi- income and excess profits taxes, and also to vidual account for five weeks ending September the large-scale fiscal operations of the Govern- 24, as reported by 153 of the country's most ment in connection with the redemption and important clearing houses. In addition debits issue of Treasury certificates. For the last to individual account for each of the five weeks week of the period under review the figures are compared with figures for the corresponding show a recession of over 10 per cent from the weeks of last year, comparable data being avail- exceptionally high total of the previous week. able for 107 centers. Debits to individual account reported for Aggregate debits to individual account for the five-week period August 21-September 25, the week ending August 27 were about 8 per 1918, show a movement from week to week cent below the figure for the immediately pre- similar to that described for the present year, ceding week; the next week was Labor Day except that the great increase caused by special week and contained only 5 business days, with conditions during the fourth week of the 1919 the result that bank debits showed a normal period was not shown for the corresponding reduction of about 13 per cent, which, however, week of 1918. Amounts of bank debits in 1918 was more than made up during the following constitute between 65 and 86 per cent of the week. The week ending September 17 saw an amounts for corresponding weeks in 1919, the increase of 1.9 billions in these debits, due differences in most cases being no greater than largely to payments of the third installment of can be explained by the rise in the price level. Debits to individual account at clearing-house banks during each of the five weeks ending Sept. 24, 1919, and Sept. 25, 1918. [In thousands of dollars.] 1919 1918 Federal Reserve district. Week ending- Week ending- Sept. 21. Sept. 17. Sept. 10. Sept. 3, Aug. 27. Sept. 25. Sept. 18. Sept. 11. Sept. 4. Aug.. "28. No. J.—Boston: .fiangor 2,743 •3,005 3,074 2,516 2,360 2,386 2,346 2,733 2,429 2,330 Boston 268,291 308,597 268,759 213,439 243,682 200,072 219,705 204,212 170,111 208,512 FallHivcr 9,309 8,890 6,805 5,434 6,601 7,419 6,778 7,04.5 5,152 7,060 Hartford , 20,277 25,727 21,0(15 16,053 18,014 16,914 19,875 Holyoke 3,274 4,093 3,160 2.954 3,248 2,930 2,801 2,547 2,395 2,633 Lowell , 5,417 4,735 4,827 4; 999 4,400 4,120 5,503 4,724 3,858 4,296 New Bedford 7,143 8,081 7,509 5,288 5,801 5,674 5,837 5,005 4,477 4,624 New Haven 15,696 18,897 16,611 13,998 14,167 12,603 14.363 13,456 13,193 13,525 Portland 6 087 7 391 7,217 6,155 7,889 6,905 Providence 30,4(50 40,957 34,564 23,243 25,395 25,383 26,531 23,174 21,048 22,436 Springfield 17,115 16,596 15,775 11,275 12,219 7,631 7,830 7,391 6,295 6,912 Water bury i 7,799 9,84-1 7,986 5,298 5,707 6,485 7,726 6.809 6,917 6,419 Worcester 18,134 18,808 14,137 12,189 12,821 12,728 14,323 12.; 609 11,622 12,402 No. 2.—New York: Albany 18,900 22,355 18,285 14,033 18,984 19,497 15,205 15,563 14,485 17,012 Binirhamton 3,486 4,065 3,530 2,904 3,125 2,561 2,923 2,623 2,147 2,481 "Buffalo 57,900 72,814 60,006 50,767 56,433 58,231 60,532 55,276 47,253 49,877 New York 4,993,078 5,394,074 4,213,968 3,434,335 4,253,411 3,077,011 3,014,507 3,512,698 2,997,636 3,084,885 Passaic 4,482 4,920 4,576 3,205 3,628 3,544 3,984 3,385 2,788 2,895 ^Rochester i 27 514 32,246 27,157 26,966 22,820 20,89t 23;706 19,992 19,835 28,803 Syracuse J 6,035 15,878 13,494 13,404 12,707 8,292 13,205 7,233 10,575 No. 3.—Philadelphia: Altoona I 3,161 3,322 3,489 2,544 3,505 2,672 2,135 3,595 1,812 3,012 Chester 5,150 4,782 3,707 3,074 3,863 5,125 5,7(58 4,716 4,416 4,875 llarrisburg 1 3,735 4,600 4.199 3,500 3,930 5,981 6,410 6,439 5,350 4,988 Johnstown I 3,325 3 522 3', 517 2,484 2,794 2,180 2,952 Lancaster 5,036 5,181 4,960 4,079 4,171 4,005 4,340 4,198 3,478 3,656 Philadelphia 331,078 376,0J3 308,762 281,376 281,766 277,000 282,786 259,117 260,842 244,669 Heading. 3,922 3,819 4,477 2,943 3,683 6,419 5,480 4,151 4,859 5,799 Scran ton 13,339 12,112 13,541 9,188 13,:I93 10,945 9,378 11,100 9,2(59 12,075 Trenton i i() 599 13 704 10 032 8,191 9 029 9 422 10 973 7 956 7,137 Wilkes-Barrc (>J 911 8',634 8^032 6,851 6,040 o'810 7,702 5,967 6,137 5,202 William sport 3,970 3,643 2,825 2,282 3,238 2,915 2,961 3,134 2,739 2,772 Wilmington 16,682 21,931 9,112 8,707 7,621 7,972 9,063 8,644 8,087 5,225 York...'. 3,699 3,684 3,268 2,948 2,853 2,896 3,001 3,011 2,386 3,418 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

984 FEDERAL RESERVE BULLETIN. October 1,1919. Debits to individual account at clearing-house banks during each of the five weeks ending Sept. 24, 1919, and Sept. 25, 1918- Continued. [Tn thousands of dollars.] 1919 1918 Federal Reserve district. Week ending— Week ending— ; Sept. 24. Sept. 17. j Sept. 10. Sept. 3. Aug. 27. Sept. 25. Sept. 18. Sept. 11. | Sept. 4. Aug. No. 4.—Clcvela nd: Akron 25,822 23,6(57 i 25,369 21,235 19,933 14,305 Cincinnati 63,376 73,032 ! 60,160 49.877 48,653 I 51,442 51,334 49,385 45,754 45,417 Cleveland 159,972 188,435 161,1.65 145;904 132,91.1 I Columbus 27,494 31,320 : 29,008 24,492 26,887 ! 21,221 21,946 23,392 i 18,843 18,703 Dayton 11,124 11,958 : 12,245 11,946 = 11,205 j 10,968 11,006 11,512 1 9,478 10,519 Erie 6,184 7,676 ' 6,946 5,122 6,039 i 6,4.45 7,054 6,454 ! 5.315 5,238 Grcensburer, Pa- 4,485 4,672 : 5,360 3,587 I 3,360 2,639 2,705 2,552 i 2,680 Lexington". 5,028 5,609 i 4,722 4,374 i 4,405 3.357 3.302 Oil City 2,682 2,565 2,729 2,01.0 I 2,650 i 3j 385 2; 132 Pittsburgh. 176,262 198,264 162,214 127,953 1 155,309 ! Springfield 3,062 4,097 3,453 3,709 i 3.513 j 2,181 I 2,643 2,623 3,136 Toledo 31,200 36,850 29,894 23,056 ! 25,963 ! 20,880 23.786 21,856 17,012 30,000 Wheeling 9,242 8.602 7,349 5,714 I 8.797 : 7,482 I 6J887 9,183 Youngstown 13,406 17/289 16,434 13,172 ! 15,034 ! 11,835 ; 11,138 15,857 'i2,'l.87 No. 5.—Richmond: Baltimore 102,337 120,002 98,9.13 90,704 94,439 ! 76,175 73,294 76,302 68,713 7.1,398 Charleston 7,170 7,144 4,538 6.062 i Charlotte 4,600 5,400 3,200 3,400 4:200 ! 5,788 Columbia 6,935 6,462 6,189 5,711 6,0(54 I Norfolk 17,871 19,050 17,424 14,572 17'. 427 I 15,911 17,1-15 i Raleigh 3,710 3,721 4,191 3,062 3,050 3,574 3,26(5 ! Richmond 30,740 31,188 27,947 22,684 23,480 23,112 21,218 24,125 19,829 19,538 No. 0.—Atlanta: Atlanta 33,354 34,9.13 30,073 24,099 23,419 2-1,575 23,339 22,173 19,172 17,156 Augusta 10,291 8,886 8,992 6,91.2 5,766 10.728 9,946 9,662 6,625 6,257 Birmingham 14,017 15.291 13,434 11,799 13,832 13,680 12,010 12,330 12,680 11.619 Chattanooga 11,332 13; (597 11,699 9,302 9i 270 8,720 8,753 9,308 7.763 7,175 Jacksonville 11,11.2 10.5S2 10,780 9.608 10,124 j 9,388 ! 9,750 9,050 7,445 9,634 Knoxville 5,999 f>|938 6,160 5'. 378 5,749 4,918 I 5.057 5,955 5,513 4,544 Macon 7,836 7,569 7,094 7,920 5,91.7 I 7; 237 7; 324 6,596 5166(5 4,906 Mobile 6,752 ()', 743 7,077 6,758 6,721. I 6.323 6,193 6,021 5,594 5,024 Montgom ery 4,461 3,635 4,109 3,462 3,196 ! 4j 656 5,222 4,485 3,398 2:859 Nashville..'. 21,159 20,779 20,135 15,518 18,274 j 19,801 19.242 20,047 18,094 16;903 New Orleans 64,726 61,885 67,781. 53i320 61,166 54,256 52J791 53,881 48,477 53,180 Pensacola 1,881 2,282 2,139 1J908 2,073 * 1,656 1,851 1,650 1,727 1,525 Savannah 15,433 16,194 15,013 13,396 14.255 15,664 17,602 16,580 13,099 10,669 Tampa 4,598 4.578 4.708 4,030 3', 664 3,485 3,086 3,253 3,030 3,375 Vicksburg 1,306 1^405 1>24 1,2L4 1,083 1,629 1,566 1,428 1,266 1,057 No. 7.—Chicago: Bay City; 2,755 3,551. 3,058 2,431. 2,654 2,383 2,390 2,233 I 2,251 C B e l d o a o r m R i a n p g i t d o s n 2 9 , , 9 6 5 7 9 3 8 3 , , 2 4 4 0 2 0 2 9, , 1 4 5 2 2 5 2 9, , 2 7 4 97 3 8 2 , , 4 5 6 5 2 5 1,947 2,258 2,432 i 2,273 1,926 Chicago 652,077 791,7-14 I 050,802 548,187 611,419 I 527,579 ! 610,17!) 396.781 I 42S.084 482,999 Davenport 7,48(5 7,642 8-, 085 6,300 6,732 i 5,972 ' 6,200 6,002 i 5,306 4,426 Decatur 3,702 4,618 4,1(55 3,764 3,663 j 2,875 2,936 3,020 I 2,854 3,175 Des Moines 20,242 22,718 25,571. 17,088 19,662 i Detroit 140,058 190,426 126,057 107,131 120,139 i 98,3C9 105,211 82,993 ! 87.739 93,950 D Fl u in b t u . a '. ue 10 2 , , 1 58 19 6 2 9 , , ( 3 5 76 23 ,8 2 , ; 0 4 0 5 5 8 7 2 , , 9 2 3 3 2 6 8 2, , 0 8 89 27 ] I 1 4 , , 8 1 0 0 0 5 2,242 1,966 ! l;5S7 Fort Wayne 5,460 5,092 5,703 4,521 4,909 I 5,408 4,312 5,663 : 3,657 4,196 Grand Rapids 19,435 20.227 2,1,276 16,256 18,916 ! 16,959 14,030 10,853 Indianapolis 32,918 39;442 34,239 26.907 26,852 I 29,181 30,759 '*26J754"i 22,457 "27," 191 Jackson 4,81.3 4,644 4,977 3', 784 4,142 i ICalamazoo 3,866 4,438 3,859 3,2.14 2.636 I 2,093 2,995 3,085 I 2,532 Lansing 5,415 5,728 4,833 5,835 5,559 3,103 2,830 j Milwaukee 68,56(5 70,367 56,770 51,190 49,51.3 ! 49,102 ""51^625 52,552 ! "30,"552 39,104 Peoria 9,215 10,854 10,294 8,674 8,50S j 10,612 11,977 10,464 I 9,382 6.224 Rcckford 4,797 6,182 5,306 4,183 4,638 1 4,370 4,448 4,654 3,659 4; 102 Sioux City 13,367 13,536 13,698 10,800 13,965 11,012 ! 10,769 li;693 South Bend 4,11.5 3,974 4,019 2,828 3,585 2,838 ! 3,004 '""4,"429" Springfield 4,961 5,354 5,270 4,010 4,316 4,253 4.390 4,667 3,949 3,703 No. 8 W — a S t t e . rl L o o o u , i I s: owa 3,472 3,816 4,088 2,774 2,583 3,224 j 2,901 2,832 2,392 2,665 , Evansviile 4,281 4,601 5,613 4,256 4,383 4,700 j 4,066 4,391 3,219 2,990 Little Rock 8,719 9,387 10,273 10,019 6,182 7,212 ! 7,395 8,194 5,312 4,822 Louisville 34,371 36,396 32,288 25,968 29,464 26,120 I 27.091 25,250 20,720 23,342 Memphis 24,598 29,629 23,958 23,746 21,484 38,750 24; 210 22,572 15,440 23,600 St. Louis 137,553 175,606 142,146 114,866 124,052 136,202 139,877 127,962 118,837 127,232 No. 9—Minneapolis: Aberdeen 1,944 2,100 2,283 1,780 2,023 1,937 1,890 2,280 I 1,796 1,519 Billings 2.265 1,946 2,390 1.969 1,564 1,832 2,011 2,255 I Duluth 20,81.5 24,889 20,493 17;263 17,690 ! Fargo 9,337 9,393 9,144 7,729 7.637 4,800 3,581 |. Grand Forks 1,991 2,288 1,818 1,514 1,560 1,468 Great Falls 2,699 2,419 2,184 1,797 1,982 3,602 3,275 i. Helena 2,875 2,679 2,136 3,752 3,219 2,099 1,920 ! 2,198 1,760 1,526 Minneapolis 102.807 104,520 107,903 78,255 73,999 113,331 107,739 ! 98,299 66,058 96,000 St. Paul 39; 563 43,271 53,252 31,395 30,580 35,696 3333,335757 ! 28,493 23,086 23,280 Superior 1,889 2,227 2,261 1,753 1,697 ! 2,145 2,235 2,238 1,401 1,688 Winona 1,278 ; 1,582 1,161 899 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

October 1,1919. FEDERAL. RESERVE BULLETIN. 985 Debits to individual account at clearing-house banks during each of the five weeks ending Sept. 24, 1919, and Sept. 25,1918- Contiimed. [In thousands of dollars.] 1919 1918 Federal Reserve district. Week ending- Week ending- Sept. 24. Sept. 17. Sept. 10. Sept. 3. | Aug. 27. Sept. 25. Sept. 18. Sept. 11. Sept. 4. Aug. 28. No. 10—Kansas City: Atchison 582 590 1,105 921 994 983 1,064 913 1,216 1,322- Bartlesville, Okla.. 2,166 3,159 2,756 2,775 2,446 1,574 2,251 1,793 1,654 1,860 Colorado Springs.. 3,050 3,451 3,400 2,958 2,793 2,274 2,484 2,401 1,929 2,036 Denver 29,308 33,867 33,398 26,732 30,432 25,303 26,395 29,216. 22,255 25,458 Joplin 2,966 3,563 3,342 2,624 2,710 3,369 4,037 3,777 3,048 3,679 Kansas City, Kans 3,143 2,999 2,983 3,342 3,719 3,032 3,356 2,283 2,782 Kansas City, Mo... 92,610 110,692 104,843 91,021 98,010 100,411 103,855 105,876 88,654 79,716 Muskogee, Okla... 4,634 5,978 4,092 3,470 2,944 3,960 2,246 1,827 2,051 Oklahoma City.... 18,527 19,621 20,367 15,046 16,330 12,128 13,968 13,231 7,947 10,235 Omaha 48,738 77,723 73,786 59,559 66,425 76,350 59,811 74,663 62,186 58,419 Pueblo 2,924 3,057 4,121 2,714 3,227 2,394 2,804 2,903 2,106 2,569 St. Joseph 14,201 19,408 17,565 15,486 16,149 18,328 18,208 19,193 Topeka 4,855 6,483 5,472 5,672 4,790 4,122 4,354 4,848 3,620 3,518 Tulsa 22,680 24,545 22,163 18,014 20,579 15,626 18,168 15,067 10,937 15,543 Wichita 11,534 12,836 15,303 13,824 13,407 6,322 8,324 11,230 15,918 8,581 NO. 11—Dallas: Albuquerque 1,531 1,474 1,713 1,405 1,361 Austin 2,720 2,859 3,441 3,562 2,814 2,742 3,786 3,252 2,464 Beaumont 4,440 3,901 4,994 2,570 3,924 4,146 3,736 3,816 3,069 2,929 Dallas 47,285 40,017 34,383 28,201 28,551 30,523 32,714 30,595 25,687 22,131 El Paso 6,400 6,319 7,739 6,308 6,319 4,878 5,216 4,393 3,720 4,545 Fort Worth 21,919 23,453 19,175 18,281 19,394 16,390 14,833 14,892 12,524 Galveston 8,804 10,787 10,435 8,742 9,317 7,252 7,869 7,919 6,669 Houston 31,154 36,557 33,487 28,497 32,256 36,715 25,775 29,614 35,547 23,257 San Antonio 7,421 7,610 8,839 5,815 6,798 Shreveport 11,688 6,295 5,790 4,436 5,475 5,639 5,854 6,031 4,488 4,062 Texarkana 1,863 2,372 1,474 1,198 1,522 1,228 1,849 1,289 1,231 1,212 Tucson 1,021 1,164 1,144 1,905 680 1,413 Waco 4,600 3,751 3,590 2,870 2,802 3,738 5,073 4,455 2,314 No. 12—San Francisco: Berkeley 2,333 2,752 2,371 2,035 2,876 Boise 2,948 3,200 4,406 2,524 2,426 Fresno 9,641 11,318 8,025 5,840 6,123 6,262 6,262 4,802 5,614 4,442 Long Beach 3,542 4,267 2,993 3,262 2,662 2,004 2,098 1,640 1,905 1,707 Los Angeles 79,787 90,259 73,039 63,031 64,017 46,382 53,995 31,226 35,942 27,196 Oakland 15,648 14,483 12,066 12,518 • 12,867 12,015 8,194 10,527 9,274 9,967 Ogden 3,745 4,484 4,111 3,158 3,212 3,808 3,607 3,594 2,861 2,365 Pasadena 2,688 4,440 3,417 2,666 2,650 1,766 1,987 1,836 1,797 1,504 Portland 45,662 59,608 42,005 42,954 38,117 51,126 43,604 38,512 33,533 39,041 Reno 2,965 3,408 2,446 1,972 2,100 1,460 1,753 Sacramento 14,726 16,019 11,290 12,526 11,857 16,118 Salt Lake City 18,375 16,550 17,174 11,391 15,081 15,530 11,686 14,139 9,779 10,933 San Diego 4,487 6,141 4,784 4,004 4,245 4,480 5,040 4,591 4,015 4,310 San Francisco 188,051 240,128 173,932 151,157 189,865 148,046 156,505 144,820 148,807 145,869 San Jose 6,103 6,043 4,846 4,851 5,087 Seattle 55,248 60,637 57,300 44,917 48,031 51,368 48,579 43,056 34,248 41,908 Spokane 14,648 15,561 13,709 11,023 9,717 9,742 9,865 6,814 8,690 Stockton 4,318 5,486 3,182 4,885 3,562 3,855 5,150 Tacoma 11,471 ! 14,714 11,471 9,748 12,946 9,625 13,103 13,306 8,347 11,076 Yakima." 3,274 I 3,074 3,891 2,946 2,524 1,568 1,750 2,290 1,610 1,479 139895—19 6 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

986 FEDERAL RESERVE BULLETIN. October 1,1919. Recapitulation showing figures for clearing house centers reporting each of the five weeks ending Sept. 24, 1919. [In thousands of dollars.] 1919 Number Week ending- Federal Reserve District. of centers included. Sept. 24. Sept. 17. Sept. 10. Sept. 3. Aug. 27. No. 1. Boston 405,658 468,230 404,272 316,716 354,415 No. 2. New York 5,121,401 5,546,352 4,341,916 3,545,614 4,371,108 No. 3. Philadelphia... 413,607 464,947 379,921 338,167 345,686 No. 4. Cleveland 539,939 614,036 527,078 442,241 464,749 No. 5. Richmond 166,193 185,823 157,864 140,193 148,660 No. 6. Atlanta 214,260 215,410 210,518 174,654 184,509 No. 7. Chicago 1,032,057 1,238,024 1,014,200 852,115 936,414 No. 8. St. Louis 209,522 255,619 214,278 178,855 185,565 No. 9. Minneapolis 187,463 197,314 205,025 148,106 142,831 No. 10. Kansas City... 261,918 327,972 314,696 264,158 284,393 No. 11. Dallas 150,846 146,559 136,204 113,790 121,213 No. 12. San Francisco. 474,934 566,553 445,168 428,108 Grand total. 153 9,177,798 10,226,839 8,351,140 6,899,491 7,907,651 Recapitulation showing figures for clearing house centers reporting each of the five weeks ending Sept. 24, 1919 and Sept. 25, 1918. [In thousands of dollars.] 1919 1918 Number of cen- Week ending- Week ending- Federal Reserve District. ters included. Sept. 24. Sept. 17. Sept. 10. Sept. 3. Aug. 27, Sept. 25. Sept. 18. Sept. 11. Sept. 4. Aug. 28, No. 1. Boston 385,381 442,503 383,207 300,663 336,401 287,431 313,803 289,705 247,827 291,149 No. 2. New York 5,105,366 5,530,474 4,328,422 3,532,210 4,358,401 3,181,738 3,120,857 3,609,537 3,084,144 3,185,953 No. 3. Philadelphia... 399,683 447,721 366,372 327,492 338,863 331,740 339,027 314,072 309,375 295,691 No. 4. Cleveland 139,378 160,836 138,253 114,493 118,807 110,956 115,126 112,599 96,402 109,877 No. 5. Richmond 133,077 151,190 126,860 113,448 117,919 99,287 94,512 100,427 88,542 90,936 No. 6. Atlanta 214,260 215,410 210,518 174,654 184,509 186,716 184,962 182,428 159,549 156,513 No. 7, Chicago 935,671 1,138,967 913,294 770,468 845,917 742,895 840,193 598,514 602,304 673,661 No. 8. St. Louis 209,522 255,619 214,278 178,855 185,565 212,984 202,039 188,369 163,558 181,986 No. 9, Minneapolis 149,078 154,797 167,835 116,935 111,518 155,208 147,141 133,508 94,101 124,013 No. 10. Kansas City... 247,717 308,564 297,131 248,672 268,244 257,519 254,507 271,520 225,5S0 217,769 No. 11. Dallas , 111,634 106,248 98,302 79,952 87,364 90,381 83,013 83,657 80,411 67,029 No. 12. San Francisco, 456,267 545,664 427,917 368,615 412,057 363,722 366,275 324,328 304,546 310,487 Grand total 8,487,034 9,457,993 7,672,389 6,326,457 7,365,5656,020,577 ,062,055 6,208,864 5,456,339 5,705,064 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

October 1,1919. FEDERAL. RESERVE BULLETIN. 987 DISCOUNT AND OPEN MARKET OPERATIONS OF THE FEDERAL RESERVE BANKS, Discount operations during the month of On the last Friday in August the Federal August aggregating $6,433,662,286 were nearly Reserve Banks held a total of $1,815,134,000 15 per cent less than the month before, though of discounted bills, compared with $1,867,about 70 per cent larger than for August of last 602,000 on the last Friday in July and $1,428,year and even in excess of the December oper- 195,000 on the corresponding date in 1918. ations of that year, which for the first time Of the total discounts on hand at the end of showed a volume exceeding six billions. The August, 88.7 per cent was the share of war total for the month under review includes paper, compared with about 87 per cent about amounts of bills discounted for other Federal the close of the previous month and 63 per Eeserve Banks, which totaled $215,987,000, cent about a year before. At the New York as against $332,555,000 the month before. bank this share was about 94 per cent, and at Nearly the entire decrease of about 750 mil-the Boston and Philadelphia banks but slightly lions in the monthly total of discount opera- less. Discounted trade acceptances on hana tions since July is accounted for by the smaller about the close of the month totaled about operations of the three Eastern banks. Of $9,001,000, as against $9,600,000 about the end the other Federal Reserve Banks, Cleveland, of July and $15,487,000 about a year previous. Kansas City, Richmond, and Dallas show Holdings of agricultural paper totaled small decreases in discount operations, while $30,363,000, as against $28,639,000 about the the remaining banks report slightly larger end of July, while holdings of live-stock paper totals than for July. were $27,538,000, as against $34,965,000 a War paper, as in previous months, consti- month before. Of the total agricultural paper tuted about 95 per cent of the total paper dis- over one-half was held by the Dallas and San counted during the month. Discounts of Francisco banks, while of the total live-stock trade acceptances for the month of August to- paper nearly 60 per cent represents the holdtaled $6,427,411 (compared with $8,504,928 ings of the Kansas City bank. for July), and with the exception of $366,333 The month witnessed a net increase in memcover transactions in the domestic trade. bership by 24, the total number of member Bankers' acceptances discounted during the banks at the close of August being 8,904, as month aggregated $181,944, member banks7 against 8,876 at the close of July. Member bills secured by eligible paper $20,028,459, as banks accommodated during August by disagainst $20,983,025 in July, while ordinary count of paper numbered 3,460 as against commercial and agricultural paper totaled 3,685 the month before. In the following ex- $235,824,380, compared with $328,645,879 for hibit are shown the number of member banks the month previous. in each Federal Reserve district at the end of Nearly 98 per cent of the total discounts for July and August, also the number in each the month was 15-day paper, i. e., bills ma- district accommodated during each of the two turing within 15 days from date of discount or months: rediscount with the Federal Reserve Bank. Six-month bills (all agricultural and live-stock Number of member paper) totaled $4,216,353, compared with N b u a m nk b s e r in o f d m ist e r m ic b t. er d b a a t n e k d s . accommo- $9,345,071 the month before, the reduction Federal Reserve Bank. in the volume of this class of discounts ap- Au 3 g 1 u . st July 31. August. July. parently corresponding to the reduced demand for bank credit in the agricultural districts Boston 429 429 243 250 New York 741 i 736 381 402 during the crop-moving season. The average Philadelphia... 670 | 669 389 413 maturity of all the paper discounted during Cleveland 835 I 830 213 199 Richmond 572 572 299 321 the month works out at 9.33 days, as against Atlanta 427 427 241 233 Chicago 1,364 1,359 468 497 9.39 days for July. About 89 per cent of the St. Louis 528 i 528 185 190 paper discounted during the month took the 4 Minneapolis 896 I 894 163 151 Kansas City 1,014 | 1,010 295 381 per cent rate and nearly 10 per cent the 4J- Dallas 748 | 745 341 398 per cent rate; the average rate of discount San Francisco.. 680 | 677 242 250 charged during the month works out at 4.12 Total 8,904 i 8,876 3,460 3,685 per cent as against 4.15 per cent the month before. Corresponding averages for the three Bills purchased in the open market during months ending August are 9.51 days and 4.15 August largely by the New York bank both per cent. for its own account and for account of other Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

988 FEDERAL RESERVE BULLETIN. October 1, 1919. Federal Reserve Banks totaled $194,210,625, On August 31 the Federal Reserve Banks compared with $276,484,830 in July and report a total of $367,164,000 of purchased $162^796,413 in August, 1918. Of the total bills on hand, compared with $373,240,000 on bills purchased, $192,404,661 were bankers' July 31, 1919, and $234,770,000 on August 31, acceptances, over 80 per cent of which were 1918. Of the most recent total all but based upon foreign trade transactions. Pur- $1,790,000 were bankers' acceptances, and of chases of $1,424,714 of trade acceptances, the latter $264,815,000, or 72.5 per cent, likewise based largely upon foreign-trade trans- were member bank acceptances, while of the actions, are reported by the Federal Reserve remainder $43,828,000 were bills accepted by Banks of New York, Cleveland, and San Fran- private banks and bankers, $20,955,000 by forcisco. The average maturity of all bills pur- eign banks and their agencies, and $35,776,000 chased during the month was 50.73 days, by other nonmember institutions. Of the compared with 51.21 days for July and 49.05 $1,790,000 of purchased trade acceptances days for the three months ending August, held at the end of the month, all but $561,000 while the average rate of discount charged were foreign trade acceptances drawn largely works out at 4.25 per cent, which is also the by exporters in the Far East and reported by average rate for the quarter ending August. the New York and San Francisco banks only. Total investment operations of each Federal Reserve Bank during the months of August, 1919 and 1918. | Federal Reserve Banks. co B m u b i e n l a l m t n s e k d b d s i e s . f r o - r Bi m l i l n s a o b rk p o e e u n t g . ht w M a u r n r i a c n ip ts a . l b U S o t n a n i t t d e e s s d . V U S n i o t n c a t t i o t e t e e r s y s d . - c in e 'n d r i t e t i e f b i d t c e a d S te n ta s e t s e o s s . f l ! I T s o e t c a S u l t r a U i t t e n ie s i s te . d T A o u t g a u l s in t, v 1 e 9 s 1 t 9 m . en A t u o g p u e s ra t, t 1 io 91 n 8 s . . Boston 3245,378,612 §42,565,466 §100,000 §100,000 $288,044,078 §142,880,762 New York 3,528,702,368 64,910,476 99,464,000 99,464,000 3,693,076,844 2,427,233,888 Philadelphia 922,775,286 509,732 2,707,000 2,707,000 925,992,018 150,366,382 Cleveland 273,718,342 16,755,025 8100 4,044,000 4,044,100 294,517,467 146,589,352 Richmond 382,999,948 5,492,600 i $100 ! 1,100,000 1,100,100 389,592,648 174,826,575 Atlanta 181,645,613 2,286,371 2,000,000 2,000,000 185,931,984 84,170,635 Chicago 377,616,768 23,529,003 61,193,500 61,193,500 462,339,271 416,849,317 St. Louis 152,420,283. 7,489,809 159,890,092 92,879,874 Minneapolis 38,192,798 7,642,665 2,690,000 2,690,000 48,525,463 87,403,974 Kansas City 104,078,485 21,115 6,165,000 6,165,000 110,264,600 58,860,158 Dallas 94,639,852 499,659 800,000 800,000 95,939,511 69,044,935 San Francisco 131,493,931 22,528,704 610,500 610,500 154,633,135 104,506,085 Total August, 1919.. 6,433,662,286 194,210,625 100 100 180,874,000 180,874,200 6,808,747,111 Total August, 1918.. 3,762,259,098 162,796,413 350,276 284,650 30,221,500 30,506,150 3,955,611,937 Total 8 months ending Aug. 31,1919..49,682,127,401 1,543,714,022 1,000 1,327,825 373,850 1,978,374,500 1,980,076,175 53,205,918,598 Total 8 months ending Aug. 31, 1918..17,794,150,413 1,018,270,515 1,689,155 72,453,213 3,092,536,660 % 164,989,873 21,979,099,956 1 4£ per cent Liberty bonds. Average amount of earning assets held by each Federal Reserve Bank during August, 1919, earnings from each class of earning assets, and annual rate of earnings on basis of August, 1919, returns. Average balances for the month oi the several classes of earning assets. Federal Reserve Bank. Discounted Purchased United States Municipal bills. bills. securities. warrants. Total. Boston §125,573,386 $31,369,749 S22,007,308 $178,950,443 New York 685,519,941 103,707,718 66,109,300 855,336,959 Philadelphia... 193,261,632 689,750 27,337,016 221,288,398 Cleveland , 118,212,830 52,081,140 21,530,971 191,824,941 Richmond 89,217,576 7,553,637 9,687,329 106,458,542 Atlanta 90,154,929 5,466,995 11,794,072 107,415,996 Chicago 205,291,991 49,336,389 45,126,051 299,754,431 St. Louis 68,098,301 9,684,444 18,221,400 96,004,145 Minneapolis..., 33,561,000 22,710,000 7,835,000 64,106,000 Kansas City.... 71,733,184 1,951,555 20,331.764 94,016,503 Dallas 54,836,900 605,625 10,304; 710 65,747,235 San Francisco., 66,425,634 85,933,976 9,363,468 161,723,078 Total August, 1919. 1.801,887,304 371,090,978 , 2,442,626,671 . Total August, 1918. I', 337,701,494 217,108,523 52,165,448 564,348 1,607,709,421 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

October 1, 1919. FEDERAL RESERVE BULLETIN. 989 Average amount of earning assets held by each Federal Reserve Bank during August, 1919, cowlings from each class of earning assets, and annual rate of earnings en basis of August, 1919, ret urns— Continued Earnings from— Calculated annual rates of earnings from— Federal Reserve Bank. co b D u il n i l s t s - e . d Pu b rc il h l a s. sed se U S cu n ta r i i t t t e e i s d es. M w x a m rr i a c n ip ts a . i ! j Total. co b u D il n is l t - s e . d c b h P i a u l s l r s e - . d se U S cu t n a r i i t t t e e i s d es . w \ ru ar n r i a c n [p ts a . l Total. Per cent. Per cent. Per cent. Per cent. Per cent. Boston i 8446,515 j 8111,935 837.919- $596,309 4.19 4.20 2.03 3.92 New York *. | 2,360,599 i 373,241 143.639 2,877'. 479 4.05 4.18 2.56 3.96 'P" hiladelphia 660,546 ; 2)487 48)838 711)871 4.02 4.24 2.13 •3.78 Cleveland... 409,717 i 186,823 39,833 636,373 4.08 4.22 2.18 3.150 Richmond... 323.867 29,375 16,601 369,8^3 4.27 4.57 2.02 4.09 Atlanta 304)534 j 20,476 19,580 344,590 4.11 4.56 2.02 3.90 Chicago 724,820 I 177,337 79,100 981,257 4.16 4.23 2.06 3.85 St. Louis 239,320 i 34,717 30.90L 304,938 4.14 4.22 2.00 3.74 Minneapolis. 116,479 | 80)548 13)817 210,844 4.09 4.18 2.08 3.87 Kansas Citv. 270,492 | 7,010 41,433 324,935 4.54 4.23 2.40 4.07 Dallas....: ! 209:288 2,374 17,890 229)552 4.43 4.61 2.04 4.11 San Francisco \ 249)348 | 302,822 16,542 568.712 4.42 4.15 2.08 4.14 Total August. 1919 ! 6,321.525 j 1.329.145 506.093 8,156,763 4.13 4-. 22 2.21 3.93 Total August; 1918 \ 4,943; 124 j 788) 280 127)415 S253 j 5,814,780 4.35 4.38 2.87 4.63 4.27 Bills discounted during the month of August. 1919, distributed by classes; also average rates and maturities of bills discounted by each Federal Reserve Bank. I Member bank's collateral Customers' notes. Federal Reserve Bank. m p c G u a e o r p n e v e t d r e w r s b n e a y - - r G S o e v cu e r r e n d m b e y nt Otherwise j c T e r p a t d an e c a e c s - . B a a a c n n c c k e e p e s t r . - 's d A is l c l o o u th n e ts r . Total. m A in a v t d e u r a a r y i g t s e y . ( A b 36 v a ra 5 s e t i - r e s d a ) a g . y e obligations. war obliga- secured. 1 tions. ! Per cent. Boston | $24,652,827 ! $210,973,650 $1,005,000 $128,777 §45,075 i 88,573,283 8245,378,612 14.45 4.18 New York i 50,247,623 ! 3,375,900,008 12,747,381 98,530 i 99,708,766 3,528,702,368 6.67 4.05 Philadelphia ! 26,623,749 ; 855,176,865 3,000 i 191,924 18,870 I 40,760,878 922,775,286 7.31 4.01 Cleveland j 9,708,795 I 248,007,050 366,500 | 14,691,092 273,718,312 14.22 4.13 Riehmond ! 7,734,388 * 364,584) 337 2.924,500 i 292,559 7,404,164 382,999,948 11.51 4.20 Atlanta ! . 2,177,602 | 168,999,124 '636,359 | 335,619 j j 9)490)909 181645,613 16.85 4.13 Chicago I -1,220,208 i 348,490,000 4,415,000 215,162 ! ; 20,270,398 377616,768 17.40 4.18 St. Louis. 3,187,891 i 139,488,089 '294,500 I 416,385 i 9,500 ! 9,023,918 152420,283 12.39 4.16 Minneapolis 4,958 ' 36,971,203 317,000 6,772 j 1 892.805 38192,798 15.42 4.10 Kansas City 592.671 ; 87,380,711 8.432,443 509,507 ! 9,909 ! 7,153)124 104078.485 17.97 4.40 Dallas.../. 218)223! 87,873,553 1,311,157 3,800 I ! 5,233,023 94,039)852 17.94 4.30 San Francisco ! 1.995,372 : 115,991,135 '323,000 634', 464 ! ! 12,549,960 131,493,931 17.14 I 4.41 Total. 131,364,307 : 6,039,835,785 j 20,028.459 j 6,427,411 : 181,944 | 235,824,380 j 6,433,062,286 j 9.33 4.12 Includes §366,333 of trade acceptances in the foreign trade. Bankers' and trade acceptances in the foreign and domestic trade and finance bills purchased during the month of August, 1919; also average rates and maturities of total bills purchased by each Federal Reserve Bank. Bankers' acceptances. Trade acceptances. ! Finance Total Average | Federal Reserve Bank. do In m e th s e tic f I o n r e t i h g e n Total. do In m e th s e ti c! '; f I o n r e t i h g e n Total. i bills. pur b c i h ll a s. sed maturity! basl). trade. trade. trade. I trade. -i- ! Per cenL Boston I 88,254,928 834,310, 542,565,460. 842,505,466 50.80 4.24! New York I 8,522,804 55,846, 64,368,813 865,471 $287,442 ! §352,913 ! $188,750 64,910,476 44.09 4.23 Philadelphia 112,173 397, 509i,,7—32 509,732 44.56 4.27 Cleveland 4,307,795 12,042, 16,3350,582 201,8 110,135 ; 311,943 j 92,500 16,755,025 52.50 4.22 Richmond 1,299,400 4,193, 5,4492, 600 5,492,600 37.63 4.56 Atlanta 1,495,404 790, 2,2280, 371 2,286,371 54.73 4.56 Chicago 4,283,852 19,245, 23,5529,003 I 23,529,003 65.22 j 4.28 St. Louis 1,997,281 5,472, f4t09, 7,469,809 41.02 4.22 Minneapolis 2,686,882 4 905 592, 50,000 7,642,665 57.60 4.22 Kansas City 21,115 21, 21,115 88.00 5.00 Dallas 499,659 499, 499,659 29.00 4.50 San Francisco 3,077,065 18,041,781 21,718. 759,858 ; "759,858 j 50,000 22,528,704 57.55 4.24 Total 36,558,358 155,846,303 192,404,661 267,279 1,157,435 : 1,424,714 ! 381,250 194,210,625 50.73 4.25 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

990 'FEDERAL RESERVE BULLETIN". October 1,1919, Bills discounted by each Federal Reserve Bank during the 3 months ending Aug. 31,1919, distributed by rates of discount; also average rates and maturities of all bills discounted by each bank during the 3 months. 4 per cent. 4J per cent. 4£ per cent. 42 per cent. 5.per cent. Federal Reserve Bank. Amount. Discount. Amount. Discount Amount. |Discount Amount. Discount Amount. Discount Boston 201,513 $538,816 §104,687,473 $921,414 $739,688 S4,599 813,614,370 8206,085 $535 .New York 445,596,178 6,758,518 150,287,719 1,309,992 4,120,992 27,530 20,957,319 152, 12,057 225 Philadelphia.. 025,267,931 2,308,256 5,922,474 53,859 480,319 3,701 2,376,402 14, 379,000 •Cleveland 654,354,276 896,349 116,624,471 247,667 2,171,011 13,586 8,019,490 49, Richmond 409,886,900 544,917 754,290,054 820,329 17,883,738 36,691 18,432,237, 118, 648,518 10,674 Atlanta 475,813,785 742,768 25,052,424 75,706 906,834 5,619 17,741,269 129, 2,203,106 39,964 Chicago. 853,375,165 1,371,611 224,645,738 430,383 539,232 3,242 54,932,552 389, St. Louis 443,318,634 476,640 6,990,053 53,042 4,824,329 10,110 14,675,563 105, Minneapolis... 98,740,497 153,329 85,200 414 1,639,972 3,092 1,975,806 10, 741,056 7,588 Kansas City... 172,816,500 266,422 105,846,449 201,785 30,353,624 55,996 2,686,331 16 25,876,232 211,075 Dallas 194, 306,772 90,184,809 163,408 4,357,972 8,879 5,445,347 29, 6,279,622 67,918 San Francisco. 387,417,002 636,952 1,124,858 9,540 10,693,308 87,142 Total. 17,668,760,045 14,364,398 1,972,033,866 4,914,951 68,017,711 173,045 161,981,544 1,114,387 47,038,984 425,614 5\ per cent. 5} per cent. Total. Average Average rate Federal Reserve Bank. maturity (365-day Amount. Discount Amount. Discount Amount. Discount in days. basis), per cent. Boston $1,014,449,129 $1,554,106 13.36 4.19 New York 10,620,974,265 8,249,225 7.00 4.05 Philadelphia.. 3,034,426,126 2,380,353 7.11 4.03 Cleveland 8271,739 $401 781,440,987 1,207,079 13.76 4.08 Richmond $65,000 $137 1,201,206,447 1,531,319 11.03 4.22 Atlanta 521,717,418 993,224 16.72 4.16 Chicago 10,000 20 2,239,462 45,207 1,135,742,149 2,240,012 17.12 4.21 St. Louis 482,471 10,114 470,291,050 655,699 12.21 4.17 Minneapolis... 1,425,607 30,076 104,608,138 204,824 4.65 Kansas City... 13,511,907 273,306 351,091,043 1,025,222 16.76 4.26 Dallas 5,977,335 118,695 105,000 231 306,738,751 695,885 18.90 4.38 San Francisco. 5,000 5 4,083,080 86,023 403,323,248 819,662 16.65 4.45 Total. 6,264,074 119,121 21,912,527 445,094 I 19,946,008,751 j 21,556,610 9.51 ! 4.15 Acceptances purchased by each Federal Reserve Bank during the three months ending Aug. 31, 1919, distributed by rates of discount; also average rates and maturities of acceptances purchased by each bank during the three months. 4 per cent. 4TS- Per cent. 4£ per cent. 4A Per cent. 41 per cent. Amount. Discount. Amount. Discount. Amount. Discount. Amount. Discount. Amount. Discount. <U0,099,324 §25,579 S25,U0.760 9114,699 !SI 9,164,502 $89,634 S9,453,402 S55,939 531,098,370 $162,545 New York 80,345,223 196,482 1,148,981 3,209 44,564,952 268,061 68,922,010 561,347 128,817,013 524,766 ^hiladolnhia 265 948 320 222.022 1,245 187,397 3,539 233,350 2,304 Cleveland 11,983;033 33,033 156,000 462 26,606,388 160,560 23,968,258 195,685 10,448,172 83,089 Atlanta Chicago 3 127 525 9,473 29,668,077 173,792 21,779,44.8 179,067 12,891,961 123,673 St Louis . l,752,03J 4,721 8,094,181 47,594 5,686,962 43,340 1,227,507 8,544 ATinn panolis 703,296 2,223 19,855,244 119,296 10,162,066 83,844 4,289,489 41,576 :B alias San Francisco 1,076,123 2,513 15,000 51 37,253,350 216,605 27,229,157 216,814 15,691,056 139,362 Total 109,352,503 274,344 26,430,741' 118,421 185,428,716 1,076,787 167,388,700 1,337,575 204,696,918 1,085,859 4& per cent. 4| per cent. 4i per cent. 4f per cent. 4^ per cent. Amount. Discount. Amount. Discount. Amount. Discount. Amount. Discount. Amount. Discount. $4 100 632 $27,187 »172,833 SI, 709 814,460 $157 $25,000 $171 NPW York 4,023,333 39,071 2,189,205 18,539 1,383,805 12,252 89,835 858 Philadplnhia 14,889 177 1 780 258 3,155 476,819 1,428 86,856 912 610,000 1,937 15,598 464 84,264 Atlanta. 12,708,598 81,024 ::i 6 969 011 73,797 5,826,250 61,148 | 5,548,050 12 748 1 291,624 2,294 1 MlnnGEiDolis 13,250 132 Dallas 1,759,831 6,033 101,650 1,194 San Francisco 2,055,226 19,294 1,129,136 4,788 793,314 5,270 $261,880 $2,131 Total 24,489,760 175,384 11,085,867 89,906 32,34o, 328 189,912 201,880 2,131 841,374 4,337 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

October 1,1919. FEDERAL RESERVE BULLETIN. 991 Acceptances purchased by each Federal Reserve Bank during the three months ending Aug. 31, 1919, distributed by rates of discount, also average rates and maturities of acceptances purchased by each bank during the three months—Continued. 41 per cent. 5 per cent. Total. Average m A a v t e u r r a i g t e y rate (365- Amount. Discount. Amount. Discount. Amount. Discount. in days. d p a e y r b c a e s n is t. ) Boston.. •fi99,239,283 8477,620 41.62 4.22 New York 331,484,357 1, 624,585 42.21 4.24 Philadeloliia 923,606 5; 585 51.79 4.26 Cleveland 76,115,784 480,261 54.51 4.23 Richmond i 15,598,464 84,264 43.21 4.56 Atlanta 12,708,598 81,024 51.00 4.56 Chicago 80,262,272 620,950 66.1.4 4.27 St Louis 23,600,355 119,241 43. 56 4.23 Minneapolis 35', 023,345 247,071 60.97 4.22 Kansas Cit v §23,114 $278 23,114 278 87.80 5.00 Dallas 1,861,481 7,227 30.79 4.60 San Francisco $240,000 $2,287 26,000 221 85,770,242 609,336 61.04 4.25 Total 240,000 2,287 49,114 499 762,610,901 4,357,442 49.05 4.25 Discounted bills, including member banks'* collateral notes, held by each Federal Reserve Bank on the last Friday in August, 1919, distributed by classes. [In thousands of dollars; i. e., 000 omitted.] Member banks' collat- Customers' eral notes. paper Agricultu- Live-stock secured by Trade Bankers' All other Federal Reserve Bank. ral paper. paper. Govern- Secured by accept- accept- discounts. Total. ment war Govern- Otherwise ances, ances. obligations, ment war secured. obligations. Boston 71,738 36,006 393 201 I 7,066 115,692 New York 159 82,840 573,465 3,177 148 j 40,407 700,196 Philadelphia.. 104 14,270 166,602 40 303 19 i 16,020 197,358 Cleveland 26 26 8,156 108,173 59 1,389 8,156 125,985 Richmond 3,019 20 13,970 63,452 1,988 828 9,033 92,310 Atlanta 3,860 976 3,830 78,635 517 387 9,152 97,357 Chicago 4,479 5,075 180,183 1,775 330 13,944 205,786 St. Louis 565 148 5,094 46,402 265 426 71 61,658 Minneapolis 675 2,553 16 28,339 262 12 691 32,548 Kansas City..., 1,770 16,168 1,128 35,409 3,170 1,039 6,047 64,731 Dallas 9,578 4,720 442 38,285 550 4,448 58,023 San Francisco.. 6,128 2,927 2,513 45,273 300 822 5,527 63,490 Total.. 30,363 I 27,538 209,072 1,400,224 9,319 9,001 439 129,178 1,815,134 Acceptances purchased and held by each Federal Reserve Bank on Aug. 30,1919, 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 m co t N n e r m i m u o e s n p s b t . a - e - r m b S N e a t m n o a k n t b e s - e . r P b r a i n v k a s te . b a F g r b a o e a n a r n n e n c c d i h k i g e e n s s . Total. Domestic. Foreign. Total. G to r t a a n l d . Boston 40,878 455 348 3,983 91 45,755 45,755 New York 45,409 1,628 14.440 21,408 10,450 93,335 507 447 954 94,289 Philadelphia.. 574 58 130 762, 762 Cleveland 31,642 3,861 4,232 1,634 42,208 54 110 "i64 42,372 Richmond 6,966 6,966 6,966 Atlanta 4,305 4,305 4.305 Chicago 44,258 185 1,930 42 46,420 46,420 St. Louis 9,797 374 50 604 10,825 10,825 Minneapolis... 17^ 794 901 503 19,577 19,577 Kansas City... 7,595 1,337 461 10,036 10,036 Dallas 796 796 796 San Francisco. 54,813 173 11,161 11,071 7,170 84,388 672 85,060 Totals: Aug. 30,1919. 264,827 3,111 32,665 43,815 20,955 365,373 561 1,229 1,790 367,163 July 31,1919.. 269,568 8,935 31,928 42,593 18,967 371,991 576 673 1,249 373,240 June 30,1919. 233,519 9,225 29,361 29,648 12,654 314,407 382 1,204 1,586 315,993 Aug. 31,1918. 188,366 1,717 8,264 19,167 8,450 225,964 2,201 8,806 234,770 Aug. 31,1917. 94,597 33,273 2,312 18,086 1,369 149,637 4,952 154,589 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

992 FEDEEAL RESERVE. BULLETIN. October 1,1919. OPERATION OF THE FEDERAL RESERVE CLEARING SYSTEM AUG. 16 TO SEPT. 15,1919. Items drawn on banks in Items drawn on banks in Total items drawn on Federal Reserve city district outside Federal banks in own Federal (daily average). Reserve city (daily av- Reserve district (daily erage). average). Number. Amount. Number. Amount. Number. Amount. Boston 18,652 $22,580,024 87,054 $13,718,874 105,706 New York 25,913 72,111,095 133.566 69,392.098 159,479 141,503,193 Philadelphia 44,546 29,539,312 49,292 7,379;237 93,838 36,918,549 Cleveland 6,577 7,927,186 80,418 26,120,687 86,995 34!047,873 Richmond 2,904 6,584,496 56,681 16,424,076 59,585 23;008.572 Atlanta 3,968 3,334,855 31,154 8,179,356 35,122 11,514!211 Chicago 23,552 27,286,000 88,405 16,061,000 111,957 43,347;000 St. Louis 6,371 9,941,424 51,708 8,658,512 58,079 18,599,936 Minneapolis 6,355 9,681,401 26,363 2,606,482 32,718 12,287,883 Kansas City 6,174 12,890,521 85,637 15,638,036 91,811 28,528,557 Dallas 1,213 2,388,994 28,984 9,368,617 30,197 11,757,611 San Francisco 3,235 4,263,773 42,418 9.265,234 45,653 13,529,007 Total: Aug. 16 to Sept. 15, 1919 149,460 208,529,081 761,680 202,812,209 911,140 411,341.290 Julv 16 to Aug. 15, 1919. 139,678 194,733,618 731.680 176,612,134 871,358 371,345,752 June 16 to July 15, 1919. 149.902 218,737,336 737,007 194,300,102 886,909 413,037!438 Aug. 16 to Sept. 15, 1918 55', 123 182,321.867 441,979 145,374!804 497,102 327,696,671 l ! : l tem i ( n d s a o d i t l r h y a e w a r v n d e i o r s a n t g r b i e c a ) t . n s ks a b I n t o d e t m h b a r s p a v a h n e r a c r e a n h n g d e t e l s e ) b . d ( a d n b a k i y l s y T S r I e t t a a e t s e m u s r s e ( d d r a r o a il f w y t n h a e v o e U n r a n t g h it e e e ) d . b N o e f u r m m ba e b n m e k r - s ; j j N m o u e f m m n b o b e n e r r - o I t n h b r c e a a o r t n e r t k p d h s o a - n in dis- i banks on mutual trict. i par list. savings ! not on ' Number. Amount. Number. Amount. Number.'; Amount. par list. Boston 12,415 111,822,572 5,326 SI,238,181 430 : 2-12 Now York 33,695 20,240,710 1,912 81,253,523 33,933 31,051,857 744 i 319 Philadelphia 24,056 9,033,597 5,339 2.478,551 670 i 409 Cleveland 3! 584 3,301,787 2,438 1,411,959 5,024 1.215.322 837 ! 1.014 7.5- Richmond 7,526 5.744.094 524 754,827 1.711 1,501.107 573 i '418 1.026 Atlanta 3,179 2,799,322 3.838 1,743,133 3.310 960,011 431 : 319 1.217 Chicago 6,752 1,759,000 '523 1,136,000 7', 4.41 2.108,000 1,363 . 3,184 1.012 St. Louis 1,029 503,719 1,131 233,899 4,049 770,401 '527 ! 1,731 922 Minneapolis 1. ~~ 1,522,962 583 ! 257,273 899 ' 1,485 1,384 Kansas City 7,860 5,977,473 3,821 1.060,051 3,084 627,985 1,017 2,502 755 Dallas 4,221 2,309,565 4,099 ' 882,1.28 2,705 737,771 745 i 392 822 San Francisco 1,304 1,869,090 3,673 2,509.265 4,036 1 8,689,137 681 ! 917 149 Total: Aug. 16 to Sept. 15, 1919.. 107,279 66,883,891 21,959 10,984,785 77,201 i 51,935,604 8,920 •: 12,962 7,362 July 16 to Aug. 15, 1919.. 110,817 66.552,940 20,787 9.119,203 83,659 ! 57', 868,769 8,894 ' 12,578 7',C21 June 16 to July 15, 1919... 104.997 66', 672,048 19,061 10^502,207 95.986 I 49.867,067 8,848 I 12,071 8.167 Aug. 16 to Sept. 15, 191S-. 80.555 ! 62,764.960 11.053 0,866.305 87!213 I 45,095.043 8,428 1 10,540 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

October 1,1919. FEDERAL RESERVE BULLETIN. 993 OPERATIONS OF THE FEDERAL RESERVE BANKS. Aggregate increases of over 100 millions in figure representing the aggregate amount of earning assets, largely discounts other than war war paper taken over by the Chicago and Minpaper, and a net gain of 43.6 millions in gold neapolis banks from other Federal Reserve reserves are the principal changes in condition Banks. Acceptance holdings of the Kansas of the Federal Reserve Banks during the five* City and San Francisco banks on September weeks between August 22 and September 26. 26 include 31.7 millions of bankers7 accept- War-paper holdings of the Federal Reserve ances purchased from other Federal Reserve Banks show an increase for the period of only Banks. 9.5 millions, while total discounts held were Government deposits show a decrease for about 108 millions larger on September 26 than the period of about 42 millions, members7 refive weeks earlier. Considerable borrowings serve deposits an increase of 51.6 millions, and by member banks on security of commercial other deposits, including foreign government paper are reflected in the reports of the Chicago, credits, a decrease of 2.4 millions. Net deposits Atlanta, St. Louis, and Kansas City banks and showed considerable fluctuations, reaching the are presumably due to increased demands for lowest figure on September 19, and stood at funds in connection with the crop movement the end of the period about 13 millions above in these districts. Acceptances on hand show the figure reported for August 22. a moderate decline for the period and stood at Gold reserves decreased during the first week the end of the period 20.4 millions below the of the period. Considerable increases are initial amount, this decline being due largely shown for the two most recent weeks, when to an increased demand for acceptances in the 79.4 millions of gold, previously held on the open market. Treasury certificate holdings continent, were transferred to the Bank of increased 13.2 millions during the five weeks, England vaults. The increases in gold relargely as a result of additional investment by serves caused by these transfers and by gold Federal Reserve Banks in 1-year 2 per cent deposits of the United States Treasury were certificates to secure Federal Reserve bank- oflset in part, however, by continued withnote circulation. The large amounts of cer- drawals of gold for export, the net increase in tificates on hand reported on September 12 gold reserves for the five weeks being 43.6 and 19 were due to the issuance by the Treas- millions. ur}^ of temporary certificates pending receipt Federal Reserve note circulation showed a of funds from depositary institutions. The practically continuous increase for the period banks7 total earning assets stood at 2,503.1 at the rate of about 20 millions a week and millions on September 26 as compared with stood on September 26, 101.8 millions above 2,402.4 millions on August 22. War paper on the figure reported five weeks earlier. Fedhand at the several Federal Reserve Banks eral Reserve Bank notes in circulation also includes the amounts held under rediscount show an increase of 23.7 millions for the for other Federal Reserve Banks. During the period. As a net result of increases in deposit five weeks under review the amount of such and note liabilities and in gold reserves the rediscounts was subject to some fluctuations banks' reserve ratio shows a slight decline for and stood on September 26 at 70.2 millions the period under review from 51.3 to 51 per (as against 69 millions on August 22), this cent. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

994 FEDERAL RESERVE BULLETIN. October 1,1919. Resources and liabilities of each Federal Reserve Bank at close of business on Fridays, Aug. 29 to Sept. 26, 1919. [In thousands of dollars; i. e., 000 omitted.] RESOURCES. Boston. Y N o e r w k. d P el h p i h la ia - . C la le n v d e . - m R o ic n h d - . la A n t t - a. c C a h g i o - . Lo S u t. is. M ap i o n l n is e . - K C a i n ty sa . s Dallas. F S r a a n n- Total. cisco. Gold coin and certificates: Aug. 29 5,688 156,435 650 17,194 2,300 7,948 23,736 2,517 8,338 183 8,720 10,522 244,231 Sept.5 5,893 149,830 756 17,289 2,345 7,813 23,830 2,495 8,394 191 8,853 15,549 243,238 Sept.12 6,070 148,884 645 10,504 2,371 7,856 23,868 2,524 8,340 153 8,452 11,942 231,609 Sept. 19 6,347 139,243 666 10,679 2,393 7,912 23,849 5,291 8,300 210 I6,938 18,219 230,047 6,566 157,733 819 10,271 2,344 7,842 23,914 3,482 8,319 257 I 6,879 10,742 239,168 Gold settlement fund, Federal Reserve Board: Aug. 29 63,200 64,352 41,754 59,665 35,396 9,565 136,748 35,852 45,149 7,403 41,471 563,640 Sept.5 56,983 96,347 42,236 60,391 28,252 9,927 110,837 19,675 36,592 38,360 7,497 35,213 542,310 Sept. 12 61,884 128,740 40,565 66,183 30,982 9,366 95,383 11,979 30,052 16,217 7,779 38,593 537,723 Sept. 19 27,938 152,696 35,783 66,753 30,992 6,780 101,636 14,884 29,840 2266,882255 jj 6', 778 11,175 512,080 Sept. 26 43,584 139,419 36,000 59,741 28,191 76,352 17,925 27,973 24,220 5,210 502,506 Gold with foreign agencies: Sept. 19 3,320 16,691 3,638 3,729 2,229 1,637 5,412 2,138 1,228 2,183 1,182 2,092 45,479 Sept. 26 5,794 29,129 6,350 6,508 3,889 2,857 9,445 3,730 2,143 3,810 2,064 3,651 79,370 Gold with Federal Reserve agents: Aug. 29. 68,544 281,659 75,923 130,573 23,951 41,911 266,538 33,142 39,356 16,040 101,965 1,142,589 SSeepptt,. 5. 75,858 291,659 75,245 131,239 27,763 41,542 276,711 56,292 32,560 41,585 17,297 104,417 1,172,168 Sept. 12. 73,318 289,854 74,071 138,835 34,008 41,485 291,945 54,721 31,967 40,227 17,405 102,933 1,190,769 Sept.19. 70,706 289,256 71,218 138,121 32,640 42,339 317,503 47,709 36,185. 35,679 17,178 110,427 1,208,961 Sept.26. 67,965 288,849 75,889 137,686 30,763 43,157 318,957 46,436 35,445 34,596 16,831 99,751 1,196,325 Gold redempption fund: Aug.29 18,345 25,000 9,961 1,126 5,370 4,300 30,813 4,710 5,650 6,128 2,856 2,069 116,328 eppt.5.5 10,755 25,000 11,586 868 6,288 4,883 33,670 5,234 1,189 3,828 2,550 3,485 109,336 Sept.12 13,218 25,000 13,025 1,182 5,480 5,746 27,957 5,743 1,750 5,088 2,887 1,690 108,766 Sept. 19 15,662 25,000 15,248 982 6,656 5,342 10,565 4,781 2,462 4,531 3,537 633 95,399 Sept.26 18,177 25,000 10,674 465 7,966 5,240 14,517 4,842 3,158 5,546 4,115 785 100,485 Total gold reserves: Aug.29 155,777 527,416 128,288 208,558 67,017 63,724 457,835 93,299 82,982 90,816 35,019 156,027 2,066,788 Sept.5 149,489 562,836 129,823 209,787 64,648 64,165 445,048 83,696 78,735 83,964 36,197 158,664 2,067,052 Sept.12 154,490 592,478 128,306 216,704 72,841 64,453 439,153 74,967 72,109 61,685 36,523 155,158 2,068,867 Sept. 19 123,973 622,886 126,553 220,264 74,910 64,010 458,965 74,803 78,015 69,428 35,613 142,546 2,091,966 Sept.26 142,086 640,130 129,732 214,671 73,153 65,989 443,185 76,415 77,038 68,429 35,099 151,927 2,117,854 Legal-tender notes, silver, etc.: Aug.29 , 7,667 50,313 175 882 449 900 4,803 208 2,099 278 69,183 Sept.5 7,013 51,577 183 756 493 843 5,081 150 2,043 281 69,818 Sept. 12 6,574 51,397 236 852 474 .255 1,099 5,272 220 1,956 236 69,632 Sept. 19 6,726 51,330 308 878 416 ,261 1,042 5,662 320 1,859 214 70,091 Sept.26 , 6,478 50,772 275 912 ,210 1,095 6,102 390 1,827 174 69,651 Total cash reserves: Aug.29 163,444 577,759 128,463 209,440 67,466 65,086 458,735 9S,102 91,024 37,118 156,305 2,135.976 Sept.5 , 156,502 614,413 130,006 210,543 65,141 65,504 445,891 88,777 78,794 84,114 158,945 2,136; 870 Sept. 12 161,064 643.875 128,542 217,556 73,315 65,708 440,252 80,239 72,170 61,905 38,479 155,394 2,138,499 Sept. 19 130,699 674)216 126,861 221,142 75,326 65,271 460,007 80, *65 78,090 69.748 37,472 142,760 2,162,057 Sept.26 148,564 690,902 130,007 215,583 73,521 67,199 444,280 82,517 77,086 68,819 36,926 152,101 2,187,505 Bills discounted: Secured by Government war obligations i— Aug.29 107,744 656,305 180,872 116,329 77,422 82,465 185,258 51,496 28,355 36,537 38,727 47,786 1,609,296 Sept.5 112,074 672,070 175,974 114,897 75,143 77,635 192,490 59,552 31,390 36,917 35,687 51,404 1,635,233 Sept. 12 108,671 611,442 179,199 110,435 73,246 75,946 137,833 60,400 36,463 44,960 34,312 51,614 1,524,521 Sept. 19.... 115,900 483,053 173,229 104,907 72,295 74,872 139,657 57,715 34,303 41,456 32,303 54,206 1,333,896 Sept.26 323,851 617,837 180,151 111,635 72,097 71,308 172,455 60,181 34,586 44.485 32,030 51,887 1,572,503 All other— Aug.29 7,948 43,891 16,486 9,656 14,888 14,892 20,528 10,162 4,193 28,194 19,296 15,704 205,838 Sept.5 7,441 52,791 16,830 9,601 14,841 15,766 21,965 10,768 4,233 23,7«4 19,556 14,609 212,185 Sept. 12 7,508 49,692 15,985 9,549 16,647 20,208 27,925 14,230 4,576 27,595 21,496 14,906 230,317 Sept. 19 45,539 21,528 11,888 19,226 24,513 32,371 19,228 5,526 34,530 22,851 16,890 261,985 Sept.26 9,451 47,707 21,705 18,475 20,191 26,928 46,091 24,357 8,272 43,686 23,672 19,244 309,779 Bills boi ket:2 Aug.29 45,755 94,288 762 42,133 7,002 4,165 11,101 19,474 10,036 796 81,457 363,138 Sept.5 46,330 71,177 843 37,853 7,254 3,923 43,067 15,274 20,283 25,046 742 82,875 354,667 Sept. 12 44,951 70,955 1,061 39,242 7,212 3,904 44,097 14,918 22,110 25,244 494 87,817 362,005 Sept. 19 44,279 73,521 811 41,768 5,982 3,736 42,967 14,017 21,138 18,591 379 353,817 Oct. 26 42,963 76,401 735 40,510 5,100 42,771 11,077 19,622 15,346 507 81,130 342,491 United States Government bonds: Aug.29 1,257 1,385 1,093 1,234 376 4,477 1,153 116 2,632 27,096 Sept.5. 539 1,257 1,385 1,093 1,234 376 4 477 1,153 116 8,868 3,966 2®P Sept. 12 539 1,257 1,385 1,093 1,234 4,477 1,153 116 3,966 27,096 Sept. 19 539 1,257 1,385 1,093 1,234 375 4,477 1,154 116 8,867 3,966 2,632 27,095 Sept.26 539 1,257 1,385 1,094 1,234 376 4 477 1,153 116 8,867 3,966 2,633 27,097 United States Victory notes: Aug.29 129 198 Sept.5 129 197 Sept. 12 128 192 Sept. 19 128 192 Sept.26 73 137 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

October 1,1919. FEDERAL RESERVE BULLETIN. 995 Resources and liabilities of each Federal Reserve Bank at close of business on Fridays, Aug. 29, to Sept. 26, 1919—Contd, [Tn thonsands of dollars, i. e., 000 omitted.] RES OURCE S—Continued. Boston. Y N o e r w k. d P el h p i h la i - a . C la le n v d e . - m R o ic n h d - . la A n t t - a. c C a h g i o - . Lo S u t. is. M ap i o n l n is e . - K C a i n ty s . as Dallas. F S r a a n n- Total. cisco. United States certificates of indebtedness: Aug. 29 21,436 66,504 27,240 20.517 8,995 12,479 33,806 17,068 8,999 12,726 6,700 6,941 243,411 Sept. 5 21,436 27,181 21J402 8,995 12,979 34,835 17,068 9,506 13,268 6,700 9,520 250,223 Sept. 12 21,471 92,752 27,231 21,402 9,695 12,964 103,642 17,068 8,013 11,802 7,200 8,415 341,655 Sept. 19 21,436 130,786 23,575 10,060 13,464 41,642 17,068 8,253 12,609 7,200 8,224* 322,986 Sept. 26 21,436 63,509 28,182 24,778 10,060 13,464 37,827 17,068 8,222 11,162 7,200 8,173 251,081 "Total earning assets: Aug. 29 183,436 226,745 189,728 109,541 114,382 290,238 90,980 61,266 96,361 69,485 154,520 2,448,977 Sept. 5 187,833 864,678 222,213 184,846 107,467 110,684 296,834 103,815 65,657 107,883 66.651 161,040 2,479,601 Sept. 12 183,149 826,148 224,861 181.721 108,034 113,403 317,974 107,769 71,406 118,469 67;468 165,384 2,485,786 Sept. 19 190,058 734,206 225,622 183,231 108,797 116,965 261.114109,182 69,464 j 116,053 66,699 168,580 2,349,971 Sept. 26 , 198,249 806,761 232,158 196,492 109,911 117,181 303; 621113,836 70,891 1123,546 67,375 163,067 2,503,088 Bank premises: Aug. 29 1,758 3,994 500 875 437 463 2,936 691 402 340 400 12,796 Sept.5 , 1,764 3,994 500 875 441 472 2,936 691 402 340 400 12,815 Sept. 12 2,089 3,994 500 875 444 472 2,936 691 402 340 400 13,143 Sept. 19 2,089 3,994 500 875 444 475 2,936 691 402 340 400 13,146 Sept. 26 2,089 3,994 500 875 444 475 2,936 402 340 400 13,146 Gold in transit or in custody in foreign countries: Aug. 29 107,119 107,119 Sept.5 107,119 107,119 Sept. 12 158,232 158 232 Sept. 19 114,138 114,138 Sept. 26 80,246 80,246 Uncollected items and other deductions from gross deposits: Aug. 29 50,205 183,732 60,402 58,023 26,789 81,679 46,308 14,054 62,583 35,287 709,394 Sept.5 202,367 72,723 67,137 67,085 33,146 105,857 51,429 15,746 ! 75,78732,936 40,735 827,845 Sept. 12 77,404 206,934 82,646 62,320 52,748 37,024 109,915 57,559 19,807 79,131 39,785 47,793 873,066 Sept. 19 91,878 232,490 86,382 90,196 44,193 120,631 62,227 19,392 86,841 50,311 54,488 1,025,122 Sept. 26 198,028 72,770 35,211 95,931 52,156 18,536 ! 70,69337,540 42,206 827,404 5 per cent redemption fund against Federal Reserve Banknotes: Aug. 29 1,072 2,335 1,297 1,106 428 1,738 354 916 452 450 11,580 Sept.5 1,0.72 2,371 1,322 933 428 1,619 746 350 708 473 450 11,160 Sept. 12 1,072 2,530 1,350 1,053 428 628 1,417 660 330 482 500 11,343 Sept. 19 1,072 2,527 1,350 1,132 428 638 1,297 670 310 473 500 11,289 Sept. 26 1,072 2,705 1,350 1,132 657 1,575 290 253 525 11,503 All other resources: Aug. 29 307 2,304 o1,389 951 631 345 1,610 547 114 : 523 488 786 9,995 Sept.5 281 2,240 1,061 826 660 339 1,569 560 111 I 545 509 810 9,511 Sept. 12 419 2,312 1,143 795 672 1,522 1,452 563 6 283 j 508 498 840 11,007 Sept. 19 260 3,128 938 835 665 240 1,612 565 c 513 j 552 765 813 10,886 Sept. 26 276 2,385 525 655 387 1,431 550 136 559 531 901 Total resources: Aug. 29 400,222 1,739,538 422,029 462,502 236,526 207,704 237,421 158,822 251,809 134,580 347,748 5,435,837 Sept.5 410,349 1,797,182 427,825 465,160 241,222 210,833 854,706 246,018 160,658 "rtrt '"1"39,149 362,380 5,584,921 Sept. 12..... 425,197 1,844,025 439,042 464,320 235,641 218,757 873,946 247,481 163,996 261,307 147,053 370,311 5,691,076 Sept. 19 416,056 1,764,699 441,653 497,411 271,753 227,782 847,597 253,800 167,769 274,488 156,060 367,541 5,686,609 Sept. 26 416,559 1,785,021 437,310 484,680 253,047 221,110 849,774 250,374 166,939 264,911 142,965 359,200 5,631,890 includes bills discounted for other Federal Reserve Banks: I Aug. 29 8,250 11,475 53,655 Sept.5 41,816 ",000 10,000 56,816 Sept. 12 3,000 22,410 5,000 15,000 45,410 Sept. 19 41,127 5,000 15,000 61,127 Sept. 26 60,195 10,000 70,195 * Includes bankers' acceptances bought from other Federal Reserve Banks without their indorsement: Aug. 29 419 10,013 29,000 39,432 Sept.5 25,023 26,139 51.162 Sept. 12 25,023 20,534 45,557 Sept. 19 18,170 20,080 38,250 Sept. 26 14,725 16,977 31,702 a Includes Government overdraft of S523,000. 6 Includes Government overdraft of 8162,000. c Includes Government overdraft of $386,000. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

996 FEDERAL RESERVE BULLETIN. October 1, 1919, Resources and liabilities of each Federal Reserve Bank at close of business on Fridays, Aug. 29 to Sept. 26, 1919—ContcL [In thousands of dollars, i. e., 000 omitted.] LIABILITIES. Boston. Y N o e r w k. d P el h p i h la i - a. C la le n v d e . - m R o ic n h d - . la A n t t - a. c C a h g i o - . Lo S u t. is. M ap i o n l n is e . - K C a i n ty sa . s Dallas. F c S i r s a a c n n o - . Total. Capital paid in: •Aug. 29 7,034 22,048 7,757 9,342 4,224 3,331 11,959 3,023 3,899 3,297 5,013 84,926 Sept. 5 7,034 22,058 7,757 9,343 ; 4,224 3,351 11,989 4,004 3,026 3,900 3,295 5,015 84,696 Sept. 12 7,034 22,060 7,757 9,361 4,225 3 373 12,059 4,005 3,026 3,904 3,321 5,015 85,140 Sept. 19 7,034 22,060 7,757 9,373 4,232 3,384 12,082 4,010 3,030 3,904 3,321 5,021 85,208 Sept. 26 7,034 22,060 7,757 9,373 4,312 3,383 12,084 4,010 3,033 3,904 3,321 5,025 85,296 Surplus f«nd: Aug. 29 5,207 32,922 5,311 5,860 3,800 2,805 9,710 2,589 2,320 3,957 2,029 4,577 81,087 Sept. 5 5,207 32,922 5,311 5,860 3,800 2,805 9,710 2,589 2,320 3,957 2,029 4,577 81,087 Sept.12 - 5,207 32,922 5,311 5,860 3,800 2,805 9,710 2,589 2,320 3,957 2,029 4,577 81,087 Sept. 19 5,207 32,922 5,311 5,860 3,800 2,805 9,710 2,589 2,320 3,957 2,029 4,577 81,087 Sept. 26 5,207 32,922 5,311 5,860 I 3,800 2,805 9,710 2,589 2,320 3,957 2,029 4,577 81,087 Government deposits: Aug. 29 5,209 7,124 4,697 I4,568 "i 4,802 6,187 3,905 2,179 6,754 3,729 5,340 54,494 Sept. 5 3,744 15,890 2,642 5 474 I1,235 | 2,514 4,183 4,944 2,268 5,741 1,846 8,629 59,110 Sept.12 5,803 163 2,215 1,693 I 2,706 4,690 2,130 2,542 4,198 2,745 4,699 33,584 Sept. 19 11,384 169 4,808 22,540 3,551 7,237 1,382 3,980 5.375 12,469 5/239 78,134 Sept. 26 4,716 14,844 3,553 12,048 ! 276 4,359 5,672 3,186 1,418 4,579 2,533 4,092 61,276 Due to members—reserve account: Aug. 29 106,728 709,654 103,761 132,085 I 44,272 247,565 59,967 51,537 77,664 45,618 94,925 1,729,950 Sept. 5 110.119 714,736 107,550 130,163 !55,594 42,337 256,613 63,714 53,038 80,362 46,082 97,333 1,757,641 Sept.12 113;i22 751,883 102,919 127,127 i57,257 44,787 266,971 62,441 53,717 78,275 44,275 100,017 1,802,791 Sept. 19 100,136 646,592 100,973 122,114 i54,104 46,728 238,673 62,466 54,269 82,742 42,652 99,977 1,651,426 Sept. 26 108,C38 107,149 125,633 j57; 636 42,435 248,749 62,768 54,387 85,653 44,160 95,506 1,731,413 Deferred availability items: Aug. 29 46,947 122,062 58,478 •52,000! 50,004 23,334 74,717 38,624 12,059 45,242 21,375 18,545 563,387 Sept. 5 155,0(54 57,441 55,495 i 55,391 28,727 79,150 40,927 10,727 60,023 25.763 23,502 643,194 Sept.12 59,295 152,174 72,840 55,086 !45,278 30,265 86,830 46,089 14,184 54,632 33,813 28,557 679,043 Sept. 19 57,212 208,935 75,950 75,167 i80,250 33,014 87,755 50,092 16,586 61,016 31,961 24,777 802,715 Sept. 26 53,857 159,530 65,915 60,368: 57,411 30,372 72,030 43,167 12,754 49,411 26,776 21,790 653,381 Other deposits, including foreign government credits: Aug. 29 6,802 42,740 3,843 3,034 10,431 3,852 j 2,397 2,249 5,766 98,479 Sept. 5 5,89Q 44,742 6,854 3,736 3,304 .10,451 I 4,049 i 2,237 1,678 2,070 5,822 99,136 Sept.12 5,845 76,891 7,051 6,548 3,784 3,042 10,339 ! 4,512 ! 2,981 ,246 2,094 6,763 134,096 Sept. 19 5,850 49,203 7,341 6,476 3,780 3,047 10,993 I 4,304 ! 2,911 2,335 6,681 106,899 Sept. 26 5,765 41,309 6,554 6,261 3,741 2,795 10,516 3,739 i 2,313 I 3,754 2.085 6,822 95,654 Total gross deposits: Aug. 29 165,686 881,580 169,178 195,380 |114,589 75,442 338,900 106,348 ! 68,172 133,488 72,971 124,576 2,446,310 Sept. 5 170,743 930,432 174,487 197,429 1115,956 76,882 350,397 113,634 j 68,270 1149,804 75,761 135,286 2,559,081 Sept.12 184,065 981,111 185,025 190,454 109,025 82,784 366,270 -115,584 j 70,882 141,351 82,927 140,036 2,649,514 Sept. 19 174,582 904,899 189,072 226,297 1141,685 90,026 338,803 120,842 i 73,766 !153, 111 89,417 136,674 2,639,174 Sept. 26 172,976 914,382 183,171 204,310 119,064 79,961 336,967 112,860 i 70,872 143,397 75,554 128,210 2,541,724 Federal Reserve notes in I i I actual circulation: Aug. 29 198,867 752,283 212,752 231,136 104,673 113.631 439,744 107,152 77,634 92,533 46,603 203,521 2,580,629 Sept. 5 203,986 758,794 2,12,863 231,449 1.07,702 ,114:807 444,845 .108,532 79,191 93,724 48,417 207,387 2,611,697 Sept.12 205,316 ! 752,893213,103 237,017 108,646 1116,367 447,265 108,039 79,742 93,486 48,982 210,372 2 621,228 Sept. 19 205,735 I 747,239 211,378 233,862 111,736 1117,963 447,173 109,030 80,507 94,683 51,223 210,729 2,621,258 Sept. 26 207,829 ! 753,135212,579 242,280 1115,100 [121,012 450,048 113,392 82,399 95,262 51,992 210,326 2,655,354 Federal Reserve bank notes in circulation—net liability: Aug. 29 21,436 42,497 25,348 19,173 8,147 11,595 34,118 16,504 7,067 16,729 8,834 8,367 219,815 Sept. 5 21,416 44,383 25,588 19,399 8,398 12,031 34,981 16,350 7,197 16,759 8,798 8,265 223,565 Sept.12 21,376 46,042 25,915 19,821 8,754 12 402 35,815 16,278 7,297 17,241 8,909 8,319 228,169 S S e e p pt t . . 2 1 6 9 2 21 1 , , 2 3 5 1 6 6 4 52 8 , , 5 1 9 9 7 7 2 2 6 6 , , 0 2 5 7 1 2 2 2 0 0 , , 7 0 8 8 1 3 9 9 , , 4 0 4 3 8 6 1 1 2 2 ; , 7 4 4 9 9 2 3 3 7 6 , , 6 8 8 0 6 6 1 1 1 0 6 6 , , ,3 ^ 2 7 0 6 9 0 3 i 7 7 t , , . 4 3 O 9 8 O 6 2 A ! 1 1 X 6 7 I , , } 8 O 3 2 V 9 4 O 3 9,150 8,425 2 2 3 3 9 2 , , 4 5 5 9 1 4 All other liabilities: Aug. 29 1,892 8,208 1,683 1,611 1,093 900 2,505 829 606 1,203 846 1,694 23,070 Sept. 5 1,963 8,593 1,819 1,680 1,142 957 2,784 654 1,295 849 1,850 24,495 Sept. 12 2,199 8,997 1,931 1,807 1,191 1,026 2,827 729 1,368 885 1,992 25,938 Sept. 19 2,182 9,382 2,084 1,936 1,264 1,112 3,023 1,066 764 1,440 920 2,115 27,288 Sept. 26 2,257 9,925 2,220 2,076 1,323 1 200 3,279' 1,144 819 1,567 971 2,197 28,978 Total liabilities: Aug. 29.. 400,222 1,739,538 422,029 462,502 236,526 207,704 I 836,936237,421 158,822 J251.809 134,580 347,748 5,435,837 Sept. 5 410,349 1,797,182 427,825 465,160 241,222 210 833 854,706 246,018 160,658 269,439 139,149 362 380 5,584,921 Sept, 12 425,197 1,844,025 439,042 464,320 1235,641 218,757 ! 873,946247,481 163,996 261 307 147,053 370,311 5,691,076 Sept. 19 416,056 1,764,699 441,653 497,411 |271,753 227,782 i 847,597253,800 167,769 274,488 156,060 367,541 5,686,609 Sept. 26 416,559 j 1,785,021437,310 484,680 1253,047 221,110 ! 849,774250,374 166,939 264^911 142 965 359,200 5,631,890 MEMORANDA. ! Contingent liability as indorser on discounted . paper rediscounted with j j other Federal Reserve J 1 Banks: ! Aug. 29 1 : 20,930 725 3,000 53,655 Sept. 5 ! ! 21,816 5,000 j. 5 000 56,816 Sept.12 ! j 7,000 8,410 i. 5,000 45,410 Sept. 19 23;627 8,000 !. 9,500 61,127 Sept.26 1 1 18,295 8,900 i. ; 18,000 70,195 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

October 1,1919. FEDERAL RESERVE BULLETIN. 997 Maturities of bills discounted and bought, also of Treasury certificates of indebtedness. [In thousands of dollars; i. e., 000 omitted.] W d it a h y in s. 15 16 to 30 31 d a to y s 6 . 0 61 d a to y s 9 . 0 O d v a e y r s 9 . 0 Total. Bills discounted: Aug. 29 ,519,814 53,870 152,545 79,889 9,016 ,815,134 Sept. 5 ,547,106 54,803 147,354 91,790 6,365 L, 847,418 Sept. 12 .443,535 49,019 166,970 88,579 6,735 ,754,838 Sept. 19 .', 317,455 68,299 190,393 62,922 6,812 ,645,881 Sept. 26 ,532,058 120,183 154,918 68,568 6,555 Bills bought: Aug. 29 95,517 79,732 137,296 45,577 5,016 363,138 Sept. 5 87,511 108,119 103,354 40,663 15,020 354,667 Sept. 12 99,259 108,054 111,087 43,605 362,005 Sept. 19 101,631 104,085 102,724 44,584 793 353,817 Sept. 26 108,4.14 85,982 112,931 34,371 342,491 United States certificates of indebtedness: Aug. 29 24,743 12,066 21,999 16,034 168,569 243,411 Sept. 5 28,686 10,536 24,777 15,532 170,692 250,223 Sept. 12 121,321 11,659 19,676 18,032 170,967 341,655 Sept. 19 89,703 9, GOO 19,706 23,972 180,605 Sept. 26 23,605 10,000 12,500 25,537 179,439 251,081 FEDERAL RESERVE NOTES. Federal Reserve note account of each Federal Reserve bank at close of business on Fridays, Awj, 29 to Sept. 26, 1919. [In thousands of dollars; i. e., 000 omitted.] Boston. Y N o e r w k. d P e h lp i h la i - a. C la le n v d e . - m R o ic n h d - . Atlanta. Chicago. Lo S u t. is. M ap i o n l n is e . - K C a i n ty s . as Dallas. F S r a a n n- Total. cisco. Federal Reserve notes received from agents: Aug. 29 206,231 220,531 245,340 108,327 117,130 463,233 125,191 79,638 98,293 49,555 223,329 2,767,166 Sept. 5 210,416 825,768 221,353 245,526 112,379 118,276 473,406 127,156 80,856 100,342 51,211 ! 227,381 2,794,100 Sept. 12 212,505 841,685 223,079 248,142 113,924 121,196 478,640 128,186 81,798 99,384 52,029 i 229,578 2,830,146 Sept. 19 215,993 843,197 226,226 247,589 117,406 121,549 476,277 128,874 82,111 100,936 53,693 I 237,771 2,851,622 Sept. 26 221,452 841,475 227,397 252,013 120,428 124,277 477,732 132,560 84,371 102,253 54,386 236,915 2,875,259 Federal Reserve notes held by banks: Aug. 29 7,264 78,085 7,779 14,204 3,654 3,499 23,489 18,039 2,004 5,760 2,952 19,808 186,537 Sept. 5 6,460 66,974 8,490 14,077 4,677 3,469 28,561 18,624 1,665 6,618 2,794 19,994 182,403 Sept. 12 7,189 88,792 9,976 11,125 5,278 4,829 31,375 20,147 2,056 5,898 3,047 19,206 208,918 Sept. 19... 10,258 95,958 14,848 | 13,727 5,670 3.586 29,104 19,844 1,604 6,253 2,470 27,042 230,364 Sept. 26..... 13,623 88,340 14,818 I 9,733 5,328 3,265 27,684 19,168 1,972 6,991 2,394 26,589 219,905 Federal Reserve notes in actual circulation: Aug. 29 198,967 752,283 212,752 231,136 104,673 113,631 439,744 107,152 77,634 92,533 46,603 203,521 2,580,629 Sept. 5 203,986 758,794 212,863 231,449 107,702 114,807 444,845 108,532 79,191 93,724 48,417 207,387 2,611,697 Sept. 12 205,316 752,893 213,103 237,017 108,646 116,367 447,265 79,742 93,486 48,982 210,372 2,621,228 Sept. 19 205,735 747,239 211,378 233,862 111,736 117,963 447,173 109,030 80,507 94,683 51,223 210,729 2,621,258 Sept. 26 207,829 753,135 212,579 242,280 115,100 121,012 450,648 113,392 82,399 95,262 51,992 210,326 2,655,354 Gold deposited with or to credit of Federal Reserve agent: Aug. 29 68,544 281,659 75,923 130,573 23,951 41,911 266,538 62,987 33,142 39,356 16,040 101,965 1,142,589 Sept. 5 75,858 291,659 75,245 131,239 27,763 41,542 276,711 56,292 32,560 41,585 17,297 104,417 1,172,168 Sept. 12 73,318 289,854 74,071 138,835 34,008 41,485 291,945 54,721 31,967 40,227 17,405 102,933 1,190,769 Sept. 19 70,706 289,256 71,218 138,121 32,640 42,339 317,503 47,709 36,185 35,679 17,178 110,427 1,208,961 Sept. 26 67,965 75,889 137,686 43,157 318,957 46,436 35,445 34,596 16,831 99,751 1,196,325 Paper delivered to Federal Reserve agent: Aug. 29 161,447 794,178 156,096 166,510 94,892 91,735 251,899 67,852 49,558 74,767 58,819 127,808 2,095,561 Sept. 5 165,845 795,673 150,286 161,007 92,643 82,328 257,434 78,864 50,161 85,747 55,985 131,351 2,107,324 Sept. 12 161,130 731,681 150,449 157,358 92,112 87,494 209,724 82,582 57,339 97,799 56,302 142,024 2,025,994 Sept. 19 168,074 601,560 155,373 157,037 93,672 83,470 214,933 53,898 94,577 55,533 144,582 1,913,595 Sept. 26 176,265 741,482 153,784 169,543 95,796 82,989 261,276 95,535 57,880 i 103,517 56,209 140,277 2,134,553 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

998 FEDERAL RESERVE BULLETIN. October 1,1919. Federal Reserve note account of each Federal Reserve agent at close of business on Fridays, Aug. 29 to Sept 26, 1919. [In thousands of dollars; i. e., 000 omitted.] Boston. Y N o e r w k. d P el h p i h la i - a. C la le n v d e . - m R o ic n h d - . Atlanta. Chicago. Lo S u t. is. M ap i o n l n is e . - K C a i n ty sa . s Dallas. c F S i r s a a c n n o - . Total. FEDERAL EESEP.VE NOTES. Received from Comptroller: Aug. 29 370,600 1,730,120 438,780 395,480 237,180 245,000 693,240 231,000 137,380 174,720 106,160 317,860 5,077,520" Sept.5 374,701 1,738,800 444,780 402,960 240,680 215,600 696,100 233,500 137,3S0 175,720 108; 200 324,460 5,122,941 Sept. 12 385,900 1,753,000 444,780 405,660 246,640 250,000 718,720 236.100 138,380 179,120 109,200 328,140 5,195,640 Sept. 19..... 397,800 1,769.360 450,780 410,580 246,640 251,000 729,680 240,'200 138,380 180,320 109,200 336,340 5,260,280 Sept. 26 415,800 i;782;760 456,780 417,980 252.640 253,000 732,880 244,160 141,880 181,720 111,240 337,160 5,328,000 Returned to Comptroller: Aug. 29 140,869 764,752 190,069 126,360 100,816 67,170 199,007 84,019 42,032 64,967 38,970 87,831 1,906,862 Sept.5 143,555 776,032 192,247 128,694 102,004 68,538 202,554 85,714 42,614 65,738 39.714 90,379 1,937,783 Sept. 12 146,095 780,315 194,921 131,598 103,758 69,595 207,160 87,284 43,207 67,096 40', 106 91,862 1,962,997 Sept. 19 148,707 795,163 197;774 134.311 105,126 70,642 212,403 88,456 43,989 68,644 40,832 92,369 1,998,416 Sept. 28 151,448 810,285 202,603 137;747 107,004 73,324 217,908 90,570 44,729 69,727 41,429 94,045 2,040,819 Chargeable to Federal Reserve agent: Aug. 29 229,731 965,368 248,711 269,120 136,364 177,830 494,233 146,981 95,348 109,753 67,190 230,029 3,170,658 Sept.5 231,146 962,768 252,533 274.266 138,676 177,062 493,606 147,786 94,766 109,982 68,486 234,081 3,185,158 Sept. 12 239,805 972;685 249,859 274,062 142,882 180,405 511,560 148,816 95,173 112,024 69,094 236,278 3,232.643 Sept. 19 249,093 974,197 253,006 276,269 141,514 180,358 517,277 151,744 94,391 111,676 243,971 3,26i;864 Sept.26 264,352 972,475 254,177 280,233 145,636 179,676 514,972 153,590 97,151 111,993 9,811 243,115 3,287,181 In hands of Federal Reserve agent: Aug. 29 23,500 135,000 28,180 23,780 28,037 60,700 31,000 21,790 15,710 11,460 17,635 6,700 403,492 Sept.5 20,700 137,000 31,180 28,740 26,297 58,786 20,200 20,630 13,910 9,640 17,275 6,700 391,058 Sept. 12 27,300 13.1,000 26,780 25,920 28,958 59,209 32,920 20,630 13,375 12,640 17,065 6,700 402,497 Sept. 19 33,100 131,000 26,780 28; 680 24,108 58,809 41,000 22,870 12,280 10,740 14,675 6,200 410,242 Sept. 26 42,900 131,000 26,780 28,220 25,208 55,399 37,240 21,030 12,780 9,740 15,425 6,200 411,922 Issued to Federal Reserve Bank less amount returned to Federal Reserve agent for redemption: Aug. 29 206,231 220,531 245,340 108,327 117,130 463,233 125,191 79,638 98,293 49,555 223,329 2,767,166 Sept.5 210,446 825,768 221,353 245,526 112,379 118,276 473,406 127,156 80,856 100.342 51,211 227,381 2,794,100 Sept. 12 212,505 841,685 223,079 248,142 113,924 121,196 478,640 128,186 81,798 99; 384 52,029 229,578 2,830,146 Sept. 19 215,993 843,197 226,226 247; 589 117,406 121.549 476,277 12S, 874 82,111 100,936 53,693 237,771 2,851,622 Sept. 26 221,452 841,475 227,397 252,013 120,428 12^277 477,732 132,560 84,371 102,253 54,386 236,915 2.875,259 Collateral held as security for outstanding notes: Gold coin and certificates— Aug. 29 183,740 28,125 2,500 13,052 8,831 236,248 Sept. 5 183,740 28,125 2,500 13,052 8,831 236,248 Sept. 12 183,740 35,125 2.500 13,052 8,831 243,24S Sept. 19 183,740 35,125 2; 500 2,160 13,052 8,831 245,408 Sept. 26 183,740 35,125 2,500 4,000 13,052 8,831 247,248 Gold redemption fund— Aug. 29 12,544 17,919 16,034 12,448 1,451 2,411 8,074 3,056 1,290 1,996 3,025 13,912 94,100 Sept.5 60,000 17,919 13,856 13,114 2,763 3,042 8,526 3,361 2,708 3,225 3,282 12,421 144,217 Sept. 12 13,318 16,114 11,182 13,710 3,008 1,985 8,921 3,791 2,115 3,867 3.390 11,689 93.090 Sept. 19 20,706 15,516 13,329 12,996 1,640 3,439 8,678 2,619 1,333 2,319 3,163 16,183 101,921 Sept. 26 17,965 15,109 13,500 12,561 1,763 2,457 9,172 2,505 3,593 3,236 3,566 14,506 99,933 Gold settelment fund, Federal Reserve Board— Aug. 29 56,000 80,000 90,000 22,500 37,000 258,464 59,931 18,800 37,360 4,184 88,053 812,181 Sept.5 15,858 90,000 61,389 90,000 25,000 36,000 268,185 52,931 16,800 38,360 5,184 91,996 791,703 Sept. 12 60,000 90,000 62,889 90,000 31,000 37,000 283.024 50,930 16,800 36,360 5,184 91,244 854,431 Sept. 19 50,000 90,000 57,889 90,000 31,000 36.400 308:825 42,930 21,800 33,360 5,184 94,244 861,632 Sept. 26 50,000 90,000 62,389 90,000 29,000 38; 200 309,785 39,931 18,800 31,360 4,434 85,245 849,144 Eligible paper, minimum required i— Aug. 29 137,687 548,709 144,608 114,767 84,376 75,219 196.695 62,2C4 46,496 58,937 33,515 121,364 624,577 Sept.5 134,588 534,109 146,108 114,287 84,616 76,734 196;695 70,864 48; 296 58.757 33,914 122,964 621,932 Sept. 12 139,187 551,831 149,008 109.307 79,916 79,711 186,695 73,465 49,831 59; 157 34,624 126,645 639,377 Sept. 19 145,287 553,941 155,008 109;468 84,766 79,210 158,774 81,165 45,926 65,257 36,515 127,344 642,661 Sept. 26 153,487 552,626 151,508 114.327 81,120 158,775 86,124 48,926 67,657 37,555 137; 164 678,934 For actual amounts see "Paper delivered to Federal Reserve agent" on p. 997. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

October 1,1919. FEDERAL RESERVE BULLETIN. 999 CONDITION OF SELECTED MEMBER BANKS. Liquidation of about 110 millions of United being 327.4 millions. Aggregate amounts of States securities, as against an increase of United States war securities and war paper about 450 millions in other loans and invest- held by all reporting banks decreased from ments, also large increases in all classes of de- 3,494.7 millions on August 15 to 3,405.9 posits accompanied by a falling off in reserves are millions on September 19, and on the later the principal developments for the five-week date constituted 22.3 per cent of the banks' period August 15 to September 19, shown by total loans and investments, as against 23.4 776 reporting member banks in leading cities. per cent on the earlier date. For the New York The United States Treasury issued on Sep- City banks alone, however, this ratio increased tember 2 573.8 millions of loan certificates from 27.7 to 28.1 per cent during the period, due in 1920, and on September 15 two series largely because the certificate holdings of of tax certificates aggregating 758.6 millions, these banks show an increase of 86.8 millions 101.1 millions of which were issued at 4J per for the five weeks. cent and are due in 6 months, while 657.5 Government deposits with the reporting millions are of the 4J per cent type and are member banks declined during the first two due in 12 months. On September 9 the Treas- weeks of the five under review, increased conury redeemed the balance of the last two series siderably during the following week, fell off of certificates issued in anticipation of the again during the week ending September 12, Victory loan and on September 15 the out- and increased by about 266 millions during standing balances of tax certificates due on the most recent week, the amount at the end September 15. As a net result of these opera- of the period under review being 146.1 millions tions Treasury certificate holdings of the in excess of the amount shown five weeks reporting member banks were about 75 millions earlier. For the New York City banks alone smaller on September 19 than on August 15. Government deposits show an increase for the The amount of United States bonds, including period of 129.1 millions. Other demand de- Liberty bonds, held by the banks decreased posits (net) show an increase of 94.2 millions, by 19.8 millions, and the banks7 holdings of a much larger increase (152 millions). being Victory notes declined 16.7 millions during shown for the New York City banks alone. the period under review. These decreases Time deposits also went up, the amount on are caused largely by sales from the banks7 September 19 being 81.3 millions in excess of own portfolios of Liberty bonds and by further the August 15 figure. Reserve balances with installment payments received from customers the Federal Reserve Banks, after a decline oh account of Victory notes purchased on the noted for the week ending August 22, increased deferred-payment plan. As against the de- steadily for the three following weeks, but decreases in United States securities on hand, clined by about 134 millions during the last week an increase of 22.7 millions in war paper of the period, apparently as a result of the large is noted, larger increases in New York and loan and investment operations of the report- Chicago being partially offset by decreases ing banks. The amount of the reserve balances outside of these cities. War paper holdings on September 19 was 111.2 millions below the declined during the first three weeks of the corresponding amount five weeks earlier. On period but increased over 48 millions during the later date the New York City reporting the two weeks following. Loans secured member banks showed a deficiency in required by stocks and bonds show increases for each reserves of about 55 millions. Cash in vault week of the period under discussion, except shows an increase of 11.1 millions for the period. for the week ending August 29, the amount Total accommodation extended by Federal on September 19 being 100.2 millions greater Reserve Banks to reporting member banks by than the corresponding figure five weeks the discount of their collateral notes and cusearlier. Of the aggregate increase only 14.6 tomers' paper shows a reduction of 66.3 milmillions is reported by the New York City lions for the period, the New York City banks banks. All other loans and investments show alone showing an even larger liquidation of a steady and rapid growth throughout the their borrowings from the Federal Reserve period, the total increase for the five weeks Bank. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1000 FEDERAL RESERVE BULLETIN. October 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 Aug. 22 to Sept. 19, 1919. 1. ALL REPORTING MEMBER BANKS. [In thousands of dollars; i. e., 000 omitted.] "Boston. Y N o o r w k. Ph p i h la i d a. el- C la le n v d e . - m R o ic n h d - . la A nt t a - . Chicago. Lo S u t. is. ; M ap i o n l n is e . - K C an it s v a . s Dallas. F c S i r s a a c n n o - . Total. Number of reporting banks: Aug. 22 110 100 775 Aug. 29 110 100 774 Sept.5 110 100 774 Sept. 12 110 100 774 Sept 19 111 100 776 United States- bonds to secure circulation: Aug. 22 14,508 48,060 11,597 41,791 25,834 14,715 20,585 17,155 7,120 14,266 18,723 34,605 268,959 Aug. 29 14,508 48,060 11,597 41,801 25,834 14,846 20,583 17,255 7,120 14,320 18,723 34,605 269,252 Sept.5 14,508 48,060 11,597 41,791 25,849 14,851 20,615 17,154 7,120 14,320 18,923 34,605 269,393 Sept. 12 14,608 48,060 11,597 41,791 25.821 14,847 20,698 17,154 7,120 14,327 18,923 34,605 269,551 Sept. 19 14,608 48,463 11,597 41,851 25J821 14,874 20,702 17,154 7,120 14,467 19,103 34,605 270,365 Other United States bonds, including Liberty bonds: Aug. 22 17,528 297,944 34,873 62,574 37,438 29,891 49,991 15,852 10,684 24,536 18,740 42,131 642,182 Aug. 29 17,302 298,665 33,870 61,265 37,085 28,774 46,986 15,525 10,731 22,635 20,238 44,306 637,382 Sept.5 17,213 297,960 33,647 62,960 35,966 28,507 47,965 15,713 11,688 23,254 20,264 41,667 636,804 Sept. 12 16,900 292,237 32,239 63,535 38,466 28,838 47,867 14,920 11,118 22,975 20,320 42,650 632,065 Sept. 19 17,125 289,244 32,161 61,481 28,047 48,235 15,159 10,952 22,687 20,253 42,291 624,434 United States Victorynotes: Aug. 22 10,481 129,511 16,711 39,167 15,786 14,590 50,664 11,013 6,622 11,411 5,228 10,771 321,955 Aug. 29 10,433 129,788 16,437 39,110 15,456 13,599 50,530 10,692 6,373 10,858 5,087 10,919 319.282 Sept.5 10,452 129,951 15,446 39,229 15,148 13,454 49,151 10,324 5,875 11,872 4,826 10,761 316; 489 Sept. 12 9,774 126,344 16,949 36,960 15,727 13,195 49,863 9,855 6,078 12,133 5,203 10,547 312,628 Sept. 19 9,443 127,797 16,510 35,837 15,115 12,798 49,316 10,321 11,873 5,145 12,638 312,726 United States certificates of indebtedness: Aug. 22.; 53,028 466,532 59,177 95,366 58,493 57,755 199,599 35,274 32,871 35,692 34,482 59,047 1,187,316 Aug. 29 50,048 452,208 57,110 93,780 47,360 56,736 197,605 34,287 31,041 39,260 56,539 1,155,560 Sept.5 75,474 531,784 65,044 112,534 41,010 68,998 202,354 40,856 35,762 45,862 42,445 72,293 1,334,416 Sept. 12 52,512 460,232 43,895 89,834 29,967 61,514 168,915 31,473 29,282 45,042 36,146 63,038 1,111,850 Sept. 19 47,818 569,887 64,996 78,589 22,851 51,588 119,896 27,198 25,255 30,903 34,545 52,151 1,125,677 Total United States securities owned: Aug. 22 95,545 942,047 122,358 238,898 137,551 116,951 79,294 57,297 85,905 77,173 146,554 2,420,412 Aug. 29 92,291 928,721 119,014 235,956 125,735 113,955 315,704 77,759 55,265 87,399 83,308 146,369 2,381,476 Sept.5.... 117,647 1,007,755 125,734 256,514 117,973 125,810 320,085 84,047 60,445 95,308 86,458 159,326 2,557,102 Sept. 12 93,794 926,873 104,680 232,120 109,981 118,394 287,343 73,402 53,598 94,477 80,592 150,840 2,326,094 Sept. 19 1,035,391 125,264 217,758 100,586 107,307 238,149 69,832 49,260 79,930 79,046 141,685 2,333,202 Loans secured by United States bonds. Victory notes and certificates: Aug.22 61,290 711,724 166,406 107,194 42,318 29,900 97,495 27,449 12,953 18,071 6,804 1,307,872 Aug. 29 61,556 709,187 165,804 105,864 43,138 29,017 95,512 28,082 12,961 18,012 6,854 26,075 1,302,062 Sept. 5 63,736 705,596 164,300 105,950 41,867 28,399 92,554 27,753 12,784 20,440 6,742 24,164 1,294,285 Sept. 12 60,857 704,296 171,600 108,247 41,595 28,977 101,391 28,135 12,870 19,960 7,779 23,663 1,309,370 Sept. 19 64,363 747,451 156,843 110,316 41,855 27,994 103,389 13,411 19,563 6,906 22,749 1,343,049 Loans secured by stocks and bonds other than United States securities: Aug.22 200,479 ,417,420 192,179 285,820 101,134 44,393 324,574 138,597 72,590 25,195 106,673 2,943,553 Aug. 29 202,602 ,392,246 201,612 289,208 101,822 45,887 304,030 142,342 31,652 71,851 25,027 107,212 2,915,491 Sept.5 207,937 ,386,550 198,832 293,810 103,502 46,109 346,170 135,568 31,234 73,302 25,525 108,057 2,956,596 Sept. 12 213,065 ,417,503 202,791 294,017 103,855 45,449 349,481 137,824 33,116 75,438 30,225 109,759 3,012,523 Sept. 19 194,889 ,438,445 204,958 301,743 106,219 47,026 351,435 135,958 34,291 73,469 31,986 106,754 3,027,173 All other loans and investments: Aug.22 600,079 3,020,756 464,780 777,055 300,768 277,963 ,192,608 283,330 231,631 437,005 166, 111586,005 8,292,637 Aug. 29 607,878 2,997,957 463,636 780,196 299,384 282,513 ,211,841 275,601 243,231 440,353 165,558 601,730 8,369,878 Sept.5 618,236 3,059,889 473,679 777,155 303,574 284,082 ,184,799 276,520 248,727 441,243 164,188 593,087 8,425,179 Sept. 12 629,814 3,095,933 465,067 780,009 311,111 294,512 ,178,168 277,072 254,984 441,701 163,636 605,262 8,497,269 Sept. 19 615,205 3,140,630 478,283 779,424 312,787 300,335 ,210,882 280,071 255,296 442,777 170,322 616,199 8,602,211 Total loans and investments: Aug.22 957,393 6,091,947 946,163 1,408,967 581,771 469,207 ,935,516 528,670 388,749 613,571 275,283 865,500 14,964,474 Aug. 29 964,327 6,028,111 950,066 1,411,224 570,079 471,372 ,927,087 523,784 343,109 617,615 280,747 881,386 14,968,907 Sept.5 1,007,556 6,159,790 962,545 1,433,429 566,916 484,400 523,888 353,190 630,293 282,913 884,634 15,233,162 Sept. 12 997,530 6,144,605 944,138 1,414,393 566,542 487,332 ,916,383 516,433 354,568 631,576 282,232 889,524 15,145,256 Sept. 19 963,451 6,361,917 965,348 1,409,241 561,447 ,903,855 514,070 352,258 615,739 288,260 887,387 15,305,635 Reserve balance with Federal Reserve Bank: Aug. 22 i* 72,459 614,777 66,860 85,054 35,938 31,391 172,695 43,543 26,086 51,224 22,117 64,472 1,286,616 Aug. 29 73,071 659,773 69,615 91,096 35,491 29,889 170,568 39,341 24,350 46,210 22,692 63,680 1,325,776 Sept.5 77,430 664,177 68,741 90,286 35,510 27,728 178,089 43,005 47,158 21,282 61,704 1,342,058 Sept. 12 78,631 701,450 69,716 89,084 36,340 31,388 180,342 41,022 25,374 21,396 62,715 1,383,481 Sept. 19 70,392 595,321 83,900 35,820 31,876 162,306 40,795 25,458 49,979 19,997 64,276 1,249,379 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

October 1,1910. FEDERAL EESEEVE BULLETIN. 1001 Principal resources and liabilities of member banks in leading cities, including member hanks located in Federal Reserve Bank cities end in Federal Reserve branch cities as at close of business on Fridays, from, Aug. 22 to Sept. 191919—Continued. 1 I. ALL REPORTING MEMBER "BANKS—Continue*. (In thousands of dollars; i. e., 000 omitted.] Boston. Y N o o r w k. Ph p i h la i d a. el- C la le n v d e . - m R o ic n h d - . i ia A n t t a - . Chicago. Lo S u t. is. M sp i o n i n ls e , - ! j i K C an it s y a , s c F S i r s a a c n n o - . Total. Cash in vault: \ Aug. 22 23,438 122,829 17,158 29,920 16,623 13,399 62,166 9.419 8,502 ! 14,361 9.994 22,69S 350,507 Aug. 20 22,712 117,612 16.062 29,98S 15,976 13,275 66,163 9; 559 8,575 14.813 9; 741 21,129 345,605 Sept. 5 24,4n2 125,635 20.112 33,679 16,712 13,293 67,145 10,195 9.202 14'. 771 9,711 20,423 365,330 Sept. 12 25,195 125,040 22J362 31,241 16,796 14,363 6SJ449 9,864 8; 783 14;986 10,506 21,064 368,649 Sept. 19 23^ 855 122,784 17,407 S3,075 16,132 13,126 68,935 9,734 8,391 j 14,900 9,SSS 21,959 358,276 Net demand deposits on which reserve is computed: Aug. 22 735;o21 4.883,154 668,218 812,200 332,772 "261.016 1.336.042 330,324 1258,424 |474,513 191,103 511,373 10,794,660 Aug. 29 742,420 4,912,104 664,273 809,961 1333,351 1253^03 i; 318; 792 330,120 1262,458 '462,670 194,314 518,309 10,802.505 Sept. 5 749,940 4,971,564 677,461 819.768 j338,789 257,139 1,309,304 326,599 1266,632 !467,282 191,691 525,830 10,901', 999 Sept. 12 774,902 5,166,362 681,626 828'. 171 341,117 260,029 1,374,201 325,379 |268,393 467,612 192,565 540,604 11,220,961 Sept. 19 732,173 5,115,190 657,952 801,510 334,041 266,737 1,303,463 320,726 1268,572 454,583 189,652 528,685 10,973,284 Time deposits: Aug. 22 114,662 338.586 21,902 294,695 90,895 118,582 444,820 100,977 I 56,871 80,659 30,467 207,660 1,900,776 Aug. 29 111,405 352^336 21,783 29fi,600 93,049 116,224 456,362 11 0i\1i, 0A0A4J i r5t.6o, 4A6im6 79,130 30,552 208,583 1.923,494 Sept. 5 111,227 351,884 22.495 297,853 93,417 116,465 449.508 100,895 56,652 80,461 30,783 209,839 i;921,549 Sept. 12 108,219 359,513 21!949 297,212 92,275 1117,084 45i; 616 101,545 56,792 80,701 30,660 210.906 1,928,472 Sept. 19 111,114 399,282 22,196 298,210 93,365 118,899 452,264 101,603 57,661 81,807 30,932 212;755 1,978,118 Government deposits: Aug. 22 51,605 263,657 33.761 45.079 13,054 17.364 62,747 19,374 14,820 27,550 14,673 9,529 573,213 Aug. 29 40,580 237,178 S2J213 U, 935 12,207 15; 013 56,101 17,701 13,666 25,494 13,145 9,694 524,017 Sept. 5.... i 67,532 295,021 4.1,142 58,939 16,401 27,567 72,467 23,330 14,111 31,682 28,540 9,731 686,443 Sept.12 ! 51,839 211,737 ! 30,587 43,599 12,594 22,286 54,266 15,822 13,004 20,068 24,766 4,728 505,296 Sept.19 | 61,462 443,299 «0;052 55,743 15,763 15.789 58,528 14,277 11,999 10,004 19,083 4,865 770,864 Bills payable with Fed-1 erai Reserve Bank: i Aug. 22 ; 14,025 474,700 : 140,511 84,534 79,298 54,470 : 119,170 20,600 9,790 32,661 17,004 33,578 1,086,341 Aug. 29 16,479 509,137 : 143,968 98,814 66,076 57,787 I 115,405 24,656 10,680 33,153 16,567 30,987 1,123,709 Sept. 5 i 25,267 511,155 j 146,150 i 97,330 59,295 58,026 I 118,950 35,003 16,200 33,893 13,960 32,172 1,147,401 Sept. 12 14,803 461,141 i 132,510 ! 89,029 56,715 61,193 j 80,637 31,680 16,764 43,337 13,005 36,334 1,037,148 Sept. 19 1 24.142 348,210 ; 142,440 | 88,423 52,648 61,144 I 65,495 30,941 14.990 42,499 17,621 36,786 925,339 Bills rediscqanted with | Federal Reserve ! Bank: Aug. 22 59,937 118,843 25,588 ! 14,903 16,079 6,174 14,027 11,313 11,793 2,534 8,972 290,5S6 Aug. 29 58,340 117,827 i 25,189 14,344 15,250 7,128 14,261 12,983 418 11,719 1,857 8,112 287,428 Sept. 5 , 54,587 138,303 ; 20,049 14,054 15,370 7,390 17,200 12,953 397 8,057 2,362 7,083 297,805 Sept. 12 62,697 127,348 : 21,946 14,189 17,019 11,583 19,752 16,371 513 10,057 2,805 8,169 312,449 Sept. 19 01,589 117,469 ' 27,572 15,120 18,639 16,305 27,986 20,179 1,572 14.456 4,131 10,899 335,917 2. MEMBER BANKS IN FEDERAL RESERVE BANK CITIES. ! Number of reporting banks: Aug. 22 71 ! 41 ! 9 ! 13 i 17 6 10 261 Aug. 29 70 ; 41 i 9 j 13 ! 17 6 10 260 Sept. 5 70 i 41 i 9 ! 13 I 17 6 10 260 S S e e p p t t . . 1 1 9 2 7 71 0 I : 4 4 1 1 1 1 3 3 '• i 1 1 7 7 6 6 1 1 0 0 2 2 6 6 2 0 United States bonds to secure circulation: Aug. 22 4,378 38,363 ! 7,587 1 4,081 2,832 I 3,800 | 1,420 10,550 I2,791 4,753 4060 18,500 103,115 Aug. 29 4,378 38,363 ! 7,587 i 4,081 2,832 ! 3,800 I 1,419 10,550 !2,791 4,753 4060 18,500 103,114 Sept. 5 4,378 3S,363 1 7,587 j 4,081 2,832 I 3,800 1,419 10,549 !2,791 4,753 4260 18,500 103,313 Sept.12 4,478 38,363 i 7,587 i 4,081 2,832 3,800 ! 1,458 10,549 i2,791 4,753 4; 260 18,500 103,432 Sept. 19 4,478 38,766 i 7,587 I 4,131 2,832 I 3,800 | 1,438 10,549 !2,791 4,753 4440 18,500 104,065 Other United States bonds, including Liberty bonds: Aug. 22 8,341 i268,089 27,131 9,557 6,070 1,243 i 18,424 7,785 2,030 9,343 3644 20,370 382,027 Aug. 29 8,143 267,927 26,268 8,855 6,013 1,177 ! 15,869 7,597 2,091 7,273 5219 20,572 377,034 .Sept. 5 8,139 266,491 26,242 S 9,461 6,038 1,191 i 15,717 7,603 2,161 7,569 5367 20,047 376,026 Sept. 12 7,904 260,869 25,256 i 9,858 5,981 1,193 I 16,094 7,208 2,176 7,692 5,345 20,030 369,606 Sept. 19 8,139 258,129 25,143 I 9,169 6,017 1,200 : 15,865 7,181 2,528 7,273 5,318 20,066 United States Victory notes: Aug. 22 2,752 112,141 13,772 I 9,947 1,285 1,837 24,440 5,312 3,956 4,975 1,562 3,426 185,405 Aug. 29 2,730 111,375 13,385 I 9,930 1,216 1,799 24,023 5,213 3,815 4,615 1,532 3,526 183,159 Sept. 5 2,777 111,733 12,545 I 9,816 1,202 1,748 23,302 5,043 3,422 5,881 1,440 3,521 182,410 Sept. 12 2,129 106,904 13,293 I 9,204 1,181 1,806 23,691 4,640 3,066 5,777 1590 3,298 176,579 Sept. 19 1,888 108,974 12,963 I 9,239 1,174 1,759 23,359 5,195 3,186 6,042 1,588 3,331 178,698 United States certificates of indebtedness: Aug. 22 35,972 431,800 50,250 20,959 746 24,183 115.892 26,485 10,666 16,964 17,320 15,977 767,214 Aug. 29 33,485 417;181 48,183 20,079 746 24,988 113;586 26,174 9,797 20,905 21,225 15,343 751,692 Sept.5 55,070 489,127 56,338 22,943 1,421 29,340 114,704 31,397 11,576 22,810 25,730 22,282 882,738 Sept. 12 35,090 424,327 36.243 14,515 1,248 28,406 96,282 23,932 8,750 21,358 20,750 16,843 727,744 Sept. 19 28,805 542,335 581438 12,302 1,098 24,479 66,576 20,750 10,424 13,545 20,651 16,889 816,292 139895—19 7 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1002 FEDERAL. RESERVE BULLETIN. October 191919. Principal resources and liabilities of member banks in leading cities, including member hanks located in Federal Reserve Bank cities and in Federal Reserve branch cities as at close of business on Fridays, from Aug. 22 to Sept. 19,1919—Continued. 2. MEMBER BANKS IN FEDERAL RESERVE BANK CITIES—Continued. Jin thousands of dollars; i. e., 000 omitted.] I i Boston. Y N o e r w k. Ph p i h la ia d . el- C la le n v d e . - m R o ic n h d - . la A n t t - a. Chicago. Lo S u t. is. M ap i o n l n is e . -K C an it s v a . s Pallas. F c S i r s a a c n n o - . Total. Total United States securities owned: Aug. 22 51,443 850,393 98,740 44,544 10,933 31,063 160,176 50,132 19,443 36,035 26,586 58,273 1,437,763. Aug. 29 48,736 834,846 95,423 42,945 10,837 31.764 154,897 49,534 18,494 37,546 32.036 57,941 1,414,999 Sept. 5 70,364 905,714 102;712 46,301 11,493 36', 079 155,142 54.592 19,950 40,993 36'. 797 64,350 1,544,487 Sept. 12 49,601 830,463 82,379 37,6158 11,242 35,205 137,505 46', 329 16,783 39,580 311945 58.671 1,377,361 Sept. 19 43,310 948,204 101,131 34,841 11,121 31,238 107,238 43,675 18'. 929 31,613 Si', 997 58,786 1,465,083 Loans secured hy United States bonds, Victory notes, and certificates: Aug. 22 , 44,955 669,272 j 160,384 32,935 15,906 9,504 70,805 19,554 7,187 7,079 1,414 14,409 1,053,384 Aug. 29 44,723 663,159 159,859 31.909 16,018 9,407 69,010 20,036 7,211 7,295 1,511 14,406 1.044,544 Sept.5 47,820 660,934 158,311 3l',273 15,828 8,861 66,244 19,662 7; 090 7,415 1,412 13,011 I)037,861 Sept. 12 44.248 662,922 163,970 32,796 15,330 9,094 73,353 20,620 7,209 7,529 1,460 12,431 1,050,962 Sept. 19 47'; 424 706,496 150,815 33,623 15,640 8,962 77,512 20,620 7.347 • 7,911 1.577 11,551 1,089,478 Loans secured by stocks and bonds other than United States securities: Aug." 22 156,123 1,297,691 174,387 90,120 16,358 11,136 251,205 110,523 12.166 28,432 0,490 51,161 2,212,153 Aug. 29 155,978 1,269,101 183,974 99,983 15,881 11,573 230,965 113,647 9,065 27,870 0,610 50,827 2.175,474 Sept.5 162,466 1,265,683 181,141 99', 591 15,644 131747 271,673 106,773 9,213 28,185 6,635 51,693 2', 212,397 Sept. 12 165,612 1,291,036 184,736 103,040 15,644 12', 516 272,808 110,069 14,001 29,348 11,291 51,970 2,262.071 Sept. 19 142,378 1,303,217 187.760 103.. 981 15,349 14,873 273,018 108,150 14,037 29,155 I 13; 148 52,836 2,258', 408 All other loans and investments: Aug. 22 423,524 2.677,322 403,595 213,295 60,047 46,736 661,334 180,858 .10.337 162,854 42,789 278,621 5,215,858 Aug. 29 , 432,441 2', 661,643 402.193 2141049 56,539 49,435 675,501 180,424 .17', 086166,321 43', 915 288,988 5,288,535 Sept.5 430,303 2,706,911 412;058 2201085 55.860 51,569 644,319 182,766 .21,033 168,251 42,148 |276,338 5,311,688 Sept. 12 441,411 2,739,423 405,800 2221,728 6o;ooo 56,484 635,031 180,829 .22,942 166,157 42', 056 j284,919 5,357,780 Sept. 19 2,796,577 416,031 225;957 55,653 657,479 177,725 .23,929 162,297 44,603 284,219 5', 439,235 Total loans and invest- . 61,866 i ments: Aug. 22 i 676,045 5,494.678 837,546 389,874 103,244 98,439 1.143,520 361,067 .49,133 234,400 77,279 402,464 9,919,156 Aug. 29 .... 681,878 5,428', 749 841.449 388;886 99,275 L02,179 i; 130,373363; 641 .51,856 239,032 84,072 412,162 9,923,552 Sept.5 710.953 5,539,242 854,222 397,250 98,825 .10,256 1,137,378 363,793 .57,286 244,844 86.992 405,392 0,106,433 Sept. 12 700'. 8725,523,844 836,885 396,222 102,216 113,299 1,118,697 357,847 .60,935 i2tV4Xj2 O,I'T6. 14 U!Vl H8M 6,71W5, 2 |DB4A07'. 9910,048,174 Sept. 19 666', 0115,754,494 858,743 398], 402 103,976 110,726 1,115,747 350,170 .64,242 230,976 i 91,325 1107', 3920,252.204 Reserve balance with Federal Reserve ! Bank: Aug. 22 58,157 578,000 22,033 6,653 5,565 US, 486 32,366 13,155 18,321 6,924 29,371 949,317 Aug. 29 5S,4O1 621,602 63,325 26,667 5,833 8,345 115.526 29,080 11,572 13,727 6,338 28.549 986', 965 Sept.5... 61,870 629,761 62,181 23,804 5,773 5,752 123;983 32,197 13,938 15,670 5.842 26', 427 1,007,198 Sept. 12 62'. 987 663.05S 03,147 24,592 5,912 6,310 122,690 30,599 11,963 13,401 6,325 26,741 1.037,725 Sept. 19 56', 626 562', 986 62,865 18,707 6,310 7,506 107,937 30,226 11,872 16,455 4,721 27,976 '914,187 Cash in vault: Aug. 22 14,317 110,376 13,395 7.351 1,602 2,736 37,014 5,166 2,680 3,695 1.803 7,378 207,513 Aug. 29 13,987 106,050 13,048 7', 350 1,431 2,699 37,949 5,244 2,493 3,780 l',790 6,905 202,726 Sept.5 15,426 111,898 15.091 8,096 1,543 2,825 38,604 5,604 2,909 3,712 1,832 7,148 214,688 Sept. 12 15,536 111,425 14;700 7,794 1,601 3,155 38,739 5,593 2,856 3,645 1,898 7,303 214,245 Sept. 19 14,929 109,758 13,738 7,990 1,558 2,856 38,345 5,331 2,455 3 880 1,923 7,310 210,083 Net demand deposits on which reserve is computed: Aug. 22 566,572 14,467,089 583.376 202,404 54,247 50,747 895,076 J233,505 114,842 1168,765 58.928 224,271 7,619,822 Aug. 29 573,063 :4,487,636 580^68 206,632 55,881 49,030 877,521 233,488 118,005 169,928 62', 293229,286 7,642.831 Sept.5 575,872 !4,545,032 592,083 210,330 54,796 50,459 872,012 231,400 120,133 175,093 60,081 234,097 7,72i; 388 Sept. 12 597,178 14,728,369 601,385 215,489 56,839 51', 125 902,202 23l',942 117,719 172,017 59,920 243,136 7,977,321 Sept. 19 560,127 |4,683,349 573;393 I 210,820 55,867 57,626 860,895 229,436 119,529 170,037 62,665 235,211 7,818,955 Time deposits: Aug. 22 36,600 261,666 13,425 j133,571 18,156 20,348 168,328 63,636 19,489 8,994 3,210 73,660 821,083 Aug. 29 33,255 271' 438 13,239 i 134,580 18,523 20,442 168,625 63,707 19.273 9,033 3,231 73,752 829,098 Sept.5 33,090 270,999 13,927 I 135,402 18,697 20,561 168,904 63,293 19,495 9,063 3,275 73,902 830;608 Sept. 12 30.485 i 274', 895 13,769 135,344 18,616 20,637 169,309 63,758 19,610 |9,091 3.309 74,257 833.080 Sept. 19 32;834 ! 318,286 13,750 136,545 18,692 21,510 169,278 20,783 i 9,843 3)317 75,450 884;326 Government deposits: Aug. 22 40,222 ! 247,364 32,562 13,931 1,266 5.908 45,020 15,021 4,906 1(5,401 8,556 7,159 438,316 Aug. 29 36,252 i 222,531 28,844 13', 915 1,259 5; 166 40,521 13,910 4.563 15,452 7,289 7,187 396,889 Sept.5 53,331 ' 274,843 36', 867 15,083 2,183 11,128 47,640 18,228 2.890 17,173 21,931 6,811 508,108 Sept. 12 40,487 196,605 27,280 I 9.925 2,102 9,678 33,404 11,996 4', 306 j10.193 20,225 2,991 369,192 Sept. 19 50,642 433,935 57,012 ' 14; 191 1,830 5,655 36,504 11,900 5,475 I 4; 780 15,561 2,856 640,241 Bills payable with Federal Reserve Bank: Aug. 22 6,745 i 425,720 132,971 I 28,496 15,861 17,030 57,291 17,709 2,430 ! 22.934 5.250 13,71 746,226 Aug. 29 9,239 i 454,757 136i353 i 30,331 14,280 20,431 53,135 15,563 1,120 I 23', 473 4/750 12,881 776,313 Sept.5.., 19,022 ; 458,481 139,750 I 27,767 14,617 22,049 60,473 25,039 5,490 j 22,316 3,700 14,773 813,477 Sept. 12 7,893 I 407,374 126,045 ; 28,612 16,329 26,262 40,067 22,032 7,519 ! 23,428 3; 750 15,704 725,015 Sept. 19 15,167 ! 295.895 136V769.S 19,344 17,532 24,378 32,387 20,289 6,720 ! 21,758 7,000 18,347 615,576 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

October 1,1919. FEDERAL RESERVE BULLETIN. 1003 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 J'rom Aug. 22 to Sept. 19,1919—Continued, 2. MEMBER BANKS IN FEDERAL RESERVE BANK CITIES-Continued. [In thousands of dollars; i. e., 000 omitted.) ! RBonosttnonn. Ii Y N o e r w k ij P p M M l a a del-i la C n l ( e L ve- m R o ic n h d - . Lo S u t. is.! j a M p i o n l n is o . -K C a i n t s y a . s Dallas. F c S i r s a a n c n o - . Total. Bills rediscounted with Federal Reserve Bank:: Aug. 22 48,547 104,651 24,920 6,036 4,601 617 9,765 4,271 i 5,299 212,345 Aug. 29 47,112 103,071 24,523 6,120 4,726 748 9,110 4,851 i 5,546 2,001 207,808 Sept.5 43,146 122,764 19,290 5,775 4,610 912 11,667 4,079 I 2,515 2,057 216,815 Sept. 12....... 50,874 112,163 21,781 5,508 4,524 5,002 12,155 5,563 ! 4,598 627 1,995 224.790 Sept. 19 49,966 100,819 26,056 5.034 3,310 7,600 15,052 7,384 | 930 9,221 1,256 5,085 231^713 3. MEMBER BANKS IN FEDERAL RESERVE BRANCH CITIES. ! district.* d A is t t l r a i n ct ta .* | d C i h st i r c i a c g t o .* d S i t s .L tr o ic u t i . s 8 d K is C a tr n i i t s y c a t s .* d D ist a r l i l c a t s .* S d a i n s c t i r F s i c r c o a t. n * - Total. Number of reporting banks: ! Aug. 22..! : 19 ! 12 18 12 30 172 Aug. 29 IS S 12 IS 12 30 172 Sept.5 18 i 12 18 12 30 I 172 Sept. 12 18 ! 12 18 12 30 172 Sept .19 18 ; 12 18 17 ! 12 172 United States bonds to secure circulation: Aug. 22 1,599 24.397 5,596 4,685 i 1,805 5,255 I 4,487 6,758 8,485 63,067 Aug. 29 1,599 24j407 5,596 4,685 ! 1,805 5,355 j 4,487 6,758 8 485 ! 63,177 Sept.5 „ 1,599 24.397 5,611 4,685 ; 1,805 5,255 i 4,487 6,758 8,485 63,082 Sept. 12 " 1,599 24j397 5,583 4,685 I 1,870 5,255 i 4,487 6,758 8,485 63,119 Sept. 19 1,51)9 24.407 5,583 4,685 i 1,870 5,255 i 4,487 (3,758 8,485 ! 63,129 Other United States bonds, including Liberty bonds: Aug." 22 5,483 41,206 9.392 i 17,068 I 7,170 ! 0,373 I 7,379 15,111 117,791 Aug. 29 6/494 40,972 8,771 8;977 ! 17,008 i 7,204 ! 6,401 ! 7,273 14,899 117,999 Sept.5 6,373 41,327 8,588 8,785 ! 16,504 ! 7,477 i 6,630 I 7,219 14,904 117,807 Sept.12 6,485 40,958 9,101 8,871 ' 18,897 I 7,230 j 6,625 7,297 14,895 118,359 Sept. 19 6,403 39,719 8,806 I 8,691 16,720 I 7,150 j 6,555 7,259 14,746 116,049 United States Victory notes: Aug. 22 .' 21,904 8,721 16,613 I 5,157 i 2,419 I 1,395 4,726 72,074 Aug. 29 21,843 7.807 16,514 I 5,007 i 2,320 ! 1,397 4,931 72,012 Sept.5 22,038 7', 548 16,331 ' 4,877 i 2,267 I 1,399 4,853 71,067 Sept.12 20,584 7,359 16,132 4,818 ; 2,481 ! 1,441 5,015 70,843 Sept. 19 .19,786 7,207 \ 15,949 4,788 ! 2,258 I 1,431 7,036 71,411 United States certificates of indebtedness:' Aug. 22 12,522 60,458 41,211 I 21,708 7,970 ! 8,390 ! 10,082 I 31,724 254,918 Aug. 29 13,357 60,094 30,391 i 19,484 7,125 i 8,603 i 10,844 ! 32,082 242,964 SeDt.5 15,692 73,417 22,632 ! 25,383 64,475 ! 8,554 ! 10,847 ! 9,370 i 36,783 267,153 Sept. 12 13,991 (51,744 13.970 | 20,291 49,151 ! 6,868 i 12,3041 8,920 i 33,293 220,532 Sept. 19 12.504 55,578 10;584 I 17,128 ! 35,348 j 5,902 I 8,600 ! 8,174 ! 24,197 178,105 Total United Statessecuriti.es owned: Aug. 22 26,688 I 147,065 59,471 I 44,506 I 96,339 i 25,552 i 21,699 I 25,614 60,046 507,850 Aug. 29 29,646 i 147,316 48,695 ! 40,953 I 96,311 j 24,751 j 21,811 I 26,272 00,397 496,152 Sept.5 31.533 j161,179 40,716 £8,401 i 99,115 i 26,163 ! 24,231 ! 2-1,746 65,025 519,109 Sept. 12 147,68S 32,751 41,206 ! 84,050 ! 24,171 i 25,897 ! 24,416 i 61,688 472,853 Sept.19 29^522 !139,490 29,003 37,711 : 69,887 { 23.095 i 21,900 ; 23.622 ! 54,464 428,894 Loans secured by United States bonds, Victory notes, and certificates: Aug. 22 62,785 12,049 j 11.259 | 12,477 1 6.530 I 9,740 I 2,216 ; 6,784 133,071 Aug. 29 62,504 11,516 ! 10', 733 j 12,550 1 6,664 ! 6,226 ! 2,254 I 6,613 134,801 S S e e p p t t . . 5 12 6 55 2 4 ,9 ,0 6 8 0 2 1 11 1 , , 4 2 3 4 3 2 | ! 10,909 j 1 1 1 1 , , 9 6 6 6 3 1 i I 6 6 , , 6 3 5 9 6 2 ; ! 8 8 , , 0 43 0 4 6 i j 2 2 , , 2 2 2 4 6 2 I ! 6 6 , , 1 10 1 7 2 1 1 3 3 5 4 , , 9 3 2 4 3 5 Sept. 19 65,008 11,689 J '9)918 ' 11,472 ! 6,580 ! 7,664 ! 2,195 I 5,963 134,112 Loans secured by stocks and bonds other i than U. S. securities: Aug. 22 31,338 135,916 32,703 22,963 I 37,295 I 25,284 ! 26,499 ! 11,941 33,862 357,801 Aug. 29 33,676 137,636 33,323 24,965 i 36,471 25,897 j 26,416 ! 11,509 34,438 364,331 Sept.5 34,567 141,235 33,844 22,666 I 37,393 25,987 ! 27,526 I 11,794 33,975 368,987 Sept. 12 35,628 139,545 34,063 23,288 | 39,786 25,090 ! 28,187 j 11,781 34,777 372,145 Sept. 19 j 37,843 146,096 35,373 23,140 1 38,672 25,117 I 26,458 l 11,807 30,574 375,080 All other loans and investments: Aug.22 100,272 401,839 S 92,400 148,284 258,443 88,062 138,268 ' 49,697 207,236 1,484,501 Aug. 29 104,282 404,089 i 93,400 149,661 261,136 81,101 140,735 48,221 209,621 1,492,246 Sept.5 119,273 397,284 92,732 148,389 260,723 79,642 i 138,501 48,855 213,009 1,498,408 Sept. 12 113,933 398,108 I 94,613 150,738 264,455 81,694 I 139,005 48,348 218,032 1,508,926 Sept. 19 115,431 94,855 154,732 270,612 I 87,621 ! 143,690 50,395 225,391 1,539,115 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1004 FEDERAL RESERVE BULLETIN. October 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 Aug. 22 to Sept. 19, 1919—Continued. 3. MEMBER BANKS IN FEDERAL RESERVE BRANCH CITIES—Continued. [In thousands of dollars, i. e., 000 omitted. di Y N st o e ri r w c k t .i d C is la l t e r n v i d c e t - .2 di m R st i o r c i n h c d - t." d A is t t l r a i n c t t a .* d C i h st ic r a ic g t o s S d t i . s t L r o ic u t i . s s d K is C a t n r it i s y c a t s .' d D ist a r l i l c a t s .8 S d a i n c s i t s F r c i r o c a t n s - Total. Total loans and investments: Aug. 22 170,529 748,505 196,623 227,012 404,554 145,428 193,176 89,468 307,928 2,483,223 Aug. 29 183,315 751,545 186,934 226,312 406,468 138,413 195,188 88,256 311,099 2,487,530 Sept.5 200,783 762,658 178,534 228,365 409,194 138,448 198,692 87,637 318,116 2,522,427 Sept. 12 , 194,067 749,398 172,860 226,170 399,952 137,347 201,095 86,771 320,609 2,488,269 Sept. 19... 196,419 746,982 170,920 225,501 390,643 142,413 199,712 88,019 316,392 2,477,001 Reserve balance with Federal Reserve Bank: Aug. 22 11.671 46,899 13,347 17,328 25,382 10,140 17,296 6,519 22,547 171,129 Aug. 29 , 14', 601 48,557 13,138 15,875 26,544 9,228 15,765 7,597 22,530 173,835 Sept.5 12,776 50,318 13,537 14,307 26,819 9,765 15,703 6,710 22,738 172,673 Sept. 12 13,884 47,555 13,876 16,966 28,404 9,303 17,399 6,617 23,433 177,527 Sept. 19 11,815 48,409 13,172 16,603 27,385 18,601 6,625 22,974 175,581 Cash in vault: Aug. 22 2,734 13,434 5,144 6,356 12,551 3,515 5,158 2,634 7,262 58,788 A Se u p g t . . 2 5 9 4 2 3, , 1 4 9 3 0 2 1 1 4 3 , , 8 4 9 5 3 1 5 5 , , 2 3 4 9 5 7 6 6, , 0 1 5 4 1 3 1 1 4 4 , , 5 28 1 9 3 3 3, , 7 6 8 0 7 1 5 5 , , 2 31 7 6 9 2 2 , , 5 7 7 1 8 5 7 7 , ,5 2 6 4 1 2 6 63 0 , , 2 4 3 4 4 9 Sept. 12 2,896 13,484 5,544 6,432 15,379 3,539 5,337 2,910 7,167 62,688 Sept. 19 2,820 14,716 5,216 15,005 3,662 5,131 2,861 6,703 62,194 Net demand deposits on which reserve is computed: Aug. 22 114,061 446,243 116,563 147,026 196,383 85,577 148,223 54,639 179,312 1,488,027 Aug. 29 126,007 440,039 115,556 142,799 199,399 85,659 147,299 54,443 181,729 1,492,930 Sept. 5 126,518 446,967 117,836 144,421 196,763 84,319 146,860 53,425 185,221 1,502,330 Sept. 12 128,343 445,466 116,422 144,320 223,573 82,407 147,755 54,517 190,146 1,532,949 Sept. 19 125,938 429,205 112,797 145,260 206,783 81,026 141,296 49,246 185,817 1,477,368 Time deposits: Aug. 22 27,973 90,588 18,127 62,158 176,585 30,105 40,774 16,780 98,376 561,466 Aug. 29 31,666 91,471 18,758 59,609 177,293 30,027 41,200 16,841 98,898 565,763 Sept.5...., 31,539 91,733 18,686 59,439 177,753 30,310 41,543 16,875 99,725 567,603 Sept. 12 31,626 90,920 18,658 59,617 181,280 30,499 41,835 16,731 100,295 571,461 Sept. 19 31,477 90,779 19,359 58,610 181,614 41,917 16,710 100,433 571,185 Government deposits: Aug. 22 5,796 24,135 5,480 7,540 6,506 4,044 6,178 3,337 1,391 64,407 Aug. 29 5,493 24,866 4,922 6,350 5,589 3,520 5,447 3,215 1,528 60,930 Sept.5 7,863 36,345 6,547 11,018 12,155 4,822 8,063 3,875 1,941 92,629 Sept. 12 6,206 28,095 5,273 8,542 10,764 3,679 5,067 2,761 1,095 71,482 Sept. 19 4,769 37,443 8,221 7,299 11,248 2,322 2,453 2,142 1,367 77,264 Bills payable with Federal Reserve Bank: Aug. 22 12,395 51,092 36,393 9,985 j 49,059 8,181 3,249 7,365 16,100 193,819 Aug. 29 , 16,595 62,776 24,136 9,697 ! 48,] 25 8,283 3,555 7,325 14,692 195,184 Sept.5 16,280 63,232 17,236 7,590 ! 45,024 9,371 5,730 5,163 16,113 185,739 Sept. 12 17,891 55,825 11,570 8,227 i 23,783 8,905 13,165 4,063 15,229 158,658 Sept. 19 17,818 64,313 9,901 10,628 ! 17,697 9,952 13,397 4,868 12,722 161,296 Bills rediscounted with Federal Reserve Bank: Aug. 22 5,972 5,869 6,006 1,137 1,239 6,194 1,165 4,844 32,695 Aug. 29 6,186 4,92S 5,608 1,171 2,168 7,102 574 5,048 33.052 Sept.5.., 6,642 4,562 5,606 1,044 2,831 7,808 1,072 4,534 34,368 Sept. 12 6,911 4,983 7,126 828 3,486 9,700 309 934 4,977 39,254 Sept. 19 6,942 5,985 9,805 1,391 3,285 11,337 797 4,618 44,643 j i Buffalo. * New Orleans, Jacksonville, and Birmingham. ' Omaha and Denver. a Pittsburgh and Cincinnati. a Detroit. s El Paso and Houston. 3 Baltimore. e Louisville, Memphis, and Little Rock. s Spokane, Portland, Seattle, and Salt Lake City. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

October 1,1919. FEDERAL KESEEVE BTJLLETIST. 1005 IMPORTS AND EXPORTS OF GOLD AND SILVER. Gold imports into and exports from the United States. (In thousands of dollars; i. e., 000 omitted.] Au 1 g e 0 . n 2 d d 0 i a n ,1 y g 9 s 19. Au 1 g e 1 n . 3 d d 1 i a n , y 1 g 9 s 19. Sep 1 e t 0 n . 1 d d 0 i a n ,1 y g 9 s 19. J T a o n t . a 1 l ,1 si 9 n 1 c 9 e . T to o S ta e 1 l p 9 J t 1 a . 8 n 1 . . 0 , l IMPORTS. Ore and base bullion 244 260 322 11,426 10,118 United States mint or assav office bars . 6 Bullion, re fmed 1,049 i 21 19 27,956 38,065 United States coin 73 30 10,600 6,774 Foreign coin 5,141 169 Total 1,366 311 341 55,123 55,132 EXPORTS. Domestic: Ore and base bullion 15 110 United States mint or assav ofPce bars.. . 6,874 4,614 8,2.11 51.285 4,183 Bullion, refined 5 4,030 213 12; 559 3,396 Coin 2,821 13,528 2,633 143,850 24,70S Total 9,700 22,172 1.1,057 207,709 32,397 Foreign coir 15 CO 12 231 417 Total exports 9,71.5 22,232 11,069 207,940 32,814 Excess of gold exports over imports since Jan. 1,1919,8152,817,000. Excess of gold imports over exports since Aug. 1, 1934, 8918,589,000. Silver imports into and exports from the United States. [In thousands of dollars; i. e., 000 omitted.] 1 e 0 n d d i a n y g s 1 e 1 n d d i a n y g s 1 e 0 n d d i a n y g s J T a o n t . a 1 l ,1 si 9 n 1 c 9 e . T to o t S a e l p J t a . n 1 . 0 1 , Aug. 20,1919. Aug. 31,1919. Sept. 10,1919. 1918. IMPORTS. Ore pud base bullion 1,776 3,135 1,759 48,276 27,550 United States mint or assay office bars.. .. . 50 Bullion, reined 142 250 119 5,798 18,723 United States coin . 61 93 24 710 754 Foreign coin 15 106 332 3,894 3,400 Total 1,994 3,584 2,234 58,678 50,477 •EXPORTS. Domestic: Ore and ^ase bvlliop 4 12 United States mint or assav office bars 1OT 27 11 71,235 21,702 Bullion, reHined. 693 •'-, 359 2,823 79,131 123,441 Com 09 17 15 2,204 2,588 Total 868 4,403 2,849 152.574 147,743 Foreign: Bullion, refined 4,121 873 12,642 3,644 Coin 109 78 137 2,819 5,021 Total 109 4,199 1.010 15,461 8,665 Total exports . . . 977 8,602 3,859 168,035 156,408 Excess of silver exports over imports since Jan. 1,1919,3109,357,000. Excess of silver exports over imports since Aug. 1,1914, 8389.117,000. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1008 FEDERAL, RESERVE BULLETIN. October 1,1919. Estimated general stock of money, money held by Treasury, and by the Federal Reserve system, and all other money in the United States, Sept 1, 1919. Held in the Held outside Amount per General stock United States Held by or for the United States capita outside of money in the Treasury as Federal Reserve Treasury and the United United'States. assets of the Federal Reserve States Treasury Government.1 system. and the Federal! Reserve system. Gold coin s §2,944,727,731 3372,942,062 , 501,323,946 $397,070,640 Gold certificates 353,331,470 319,459,613 Standard silver dollars , 308,"i45,'759' 64,882,795 81,114,285 Silver certificates 6,284,202 154,139,856 Subsidiary silver 243,188,017 *i6,'666,'826 s4,981,963 228,199,228 Treasury notes of 1890 1,724.621 United States notes 346,081,016 15,156,163 4 57,029,740 274,495;113 Federal Reserve notes 2,764,832,415 42,041,668 161.086,863 2,561,703,884 Federal Reserve Bank notes. 231,567,200 42,800,403 12,560,018 176,206,719 National-bank notes 724,563,070 03,589,826 2,628,373 658,345,471 Total: Sept. 1,1919.. 7,563,705,808 011,419,803 2,099,226,575 4,853,059,430 $45.65 Aug. 1,1919.. 7,525,115,301 588,526,823 2,142,473,027 4,794,114,911 45.13 July 1,1919... 7,588,473,771 578,848,043 2,167,280,313 4,842,345,415 45.00 Junel, 1919.. 7,592,078,992 561,315.890 2,221,850,525 4,808,912,577 44.75 May 1,1919... 7,614,749,260 553,979', 534 2,215,178,577 4,845,591,149 45.15 Apr. 1,1919.. 7,586,752,855 550,628,454 2,195,151.766 4,840,972, (335 45.17 Mar. 1, 1919.. 7,566,299,924 545,695,945 2,169,183', 676 4,851,420,303 45.33 Feb. 1,1919.. 7,611,628,810 489,831,726 2.252,757,560 4,869,039,524 45.56 Jan. 1/1919... 7,780,793,606 454,948,160 2,220,705,767 5,105,139,079 47.83 Oct. 1,1918... ?; 391,008,277 380,246,203 2,084,774,897 4,925,987,177 46.34 July 1,1918... 6,742,225,784 350,124,750 2,018,301,825 4,307.739,209 41.31 Apr. 1,1918.. 6,480,181,525 339,856,074 1,873,524,132 4,206;800,719 40.47 Jan. 1, 1918... 6,256,198,271 277,043,358 1,723,570,291 4,255,584,022 40.53 Oct. 1,1917... 5,642,264,856 242,469,027 1,429,422,432 3,970,373,397 37.97 July 1,1917... 5,480,009,884 253,071,614 1,280,880,714 3,945,457,556 37.88 Apr. 1,1917.. 5,312,109,272 258,198,442 952,934,705 4,100,976,125 39.54 Feb. 1,1917.. 5,045,213,347 279,079,137 849,661,792 3,916,472,418 37.88 1 Includes reserve funds against issues of United States notes and Treasury notes of 1890 and redemption funds held against issues of nationalbank notes, Federal Reserve notes, and Federal Reserve Bank notes. 2 Includes balances in gold settlement fund standing to the credit of the Federal Reserve Banks and agents. 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 Sept. 30, 1919. Discounts other than trade acceptances. Trade acceptances. Secured by U. S. Government war obligations. Otherwise secured, also unsecured, Maturing within 15 | maturing within-— Maturing within— days,inciuding member • Federal Reserve Bank. banks7 collateral notes. I Matutrriinng S U ec . u S r . e d c e b r- y ietyi within 15 c d lu a d y i s n , g in- j , I 9 a 1 y t s o ( a 1 g 8 r 0 i tificates of bonds and j member 16 to 60 61 to 90 j cultural and 15 days. 16 to 90 indebted- Victory j banks' days. days. | live-stock days. notes, s co n l o la t t e e s r . al paper). Boston 4 4 4 4| 41 New York 1... 4 4 4 41 4} Philadelphia. 4 4 4 4f 41 Cleveland 4 4 4i 4i 41 Richmond... 4 4} 4 4* 41 4} % A Ch tl i a c n ag ta o 4 4 t 4 4 4 } i . 4 4 i 1 4 4 1 1 4 4 - 1 1 St. Louis 4 4 41 41 4 M Ka i n n s n a e s a p C o i l t i y s. . . . 4 4 4 i j 4 4 * i 4 5 1 5 5 4* Dallas 4 4J 4} 4i 4f 5 4i San Francisco 41 4i 41 4i 5 5 41 » Rates for discounted bankers' acceptances maturing within 15 days, 4 per cent; within 16 to 60 days, 4| per cent; within 61 to 90 days, 4§ per cent. 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 maturity. NOTE 3.—Whenever application is made by member banks for renewal of 15-day paper the Federal Reserve Banks may charge a rate not exceeding that for 90-day paper of the same class. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

October 1,1919. FEDERAL KESEKVE BULLETIN. 1007 LOANS AND DISCOUNTS OF STATE BANK MEMBERS. Classified lion of loans and discounts of State banks and, trust companies, members of the Federal Reserve system, us shoiun by their condition reports for June SO, 1919. [In thousands of dollars; i. e., 000 omitted..] i ; | D b N a i ( o s n 3 . t k r 6 i s 1 c ) t . D b N a i ( s o n 1 t . 1 k r 0 i s 2 c ) t . D b N a i ( o s n 3 . t k r 6 i s 3 c ) t . D b N a i ( o s n 8 . t k r 0 i s 4 c ) t . D b N a i ( o s n 4 . t k r 2 i s 5 c ) t . ; ! D b N a i ( s o n 5 . t k r 7 i s 6 c ) t . D b N a i ( s o n 3 . t 0 k r 5 i s 7 c ) t . D b N a is ( o n 5 t . k r 2 i s 8 c ) t . ! \ D b N i a s ( o n 7 t . r 5 k i 9 c s t ) ! . ! j D b N i a ( s o 3 t n . r 1 k i 1 c s t 0 ). D N i ( o s 1 . t 1 r 1 5 ic 1 t D b N a i ( o n 1 s . t 0 k r 1 3 s ic 2 ) t . U ( S T 1 n t , o a 0 i t 4 t t a e e 2 l s d ••• ~ " !"• On demand, not secured by colllaltetlral 28,105 ' 32,359 4,213 | 10.372 i 2,063 : 5,473 j 23,981 I 9.255 : 2,806 2,622 2,196 6,319 135,824 On demand, secured by Liberty bonds, Victory notes, and U. S. Treasury certificates of indebtedness 2,233 20,948 4,763 4,501 i 817 : 9,224 : 1,389 392 53 100 201 46,371 On demand, secured by other collateral 67,557 593.276 66,317 73,096 I 11,251 j 38,177 :125,200 i 32,694 2,215 5; 559 2,488 5,715 1,023,545 On time, not secured by collateral 1 176,640 555,611 33,763 82.609 i 36.134 I 47,882 ;309,,8G0 | 69,617 i 22,78166,861 13,889 46,014 1,411,696 On time, secured by Liberty bonds, Victory notes, and U. S. Treasury certificates of indebtedness 53,891 399,566 39,116 32,249 | 5,842 I 10,190 41,287 j 7,968 ! 1,1402,126 1,298 3,439 598,112 On time, secured by other collateral ! 49,030 332,476 19,346 56,322 18,407 ; 33,110 :173,62543,325 i 15,149 21,836 21,315 25,421 809,371 Secured by real estate mortgages or other real estate 1 iens or deeds. 35,322 49,098 j 4,886 69,308 j 5,948 \ 8,977 163,105 j 19,859 | 12,480 6,449 ] 4,128 13,528 393,088 Acceptance? of other banks discounted . 2,440 7,155 | 119 422 15 ; 82 9,132 ! 43 ! 276 ! 15 36 19,735 Acceptances of this bank purchased or discounted. 1,357 22,278 | 700 2,212 593 i 3,235 \ 1,346 j 2,095 I. 85 33,907 Loans and discounts not classified 18,870 221 | ! 1,122 j j. 2,280 514 23,007 Total loans and discounts. 16,635 2,031,637 173,227 |337,151 81,291 [148,827 |857,912 |l86,245 | 57,244 55,508 47,709 101,272 4.494,650 CONDITION OF FOREIGN BANKS OF ISSUE, 1913-1919. BANK OF ENGLAND. [Combined data for issue and banking departments.] [000 omitted.] Doc. 31, July 29, Dec. 30, Dec. 29, Dec. 27, Dec. 26. Dec. 25, July 30, 1913. 1914. 1914. 1915. ' 1916. 1917. 1918. 1919. ASSETS. : Gold and silver | $170,245 3185,570 ; S338.191 $250,510 5264,275 $283,899 5384,994 3430,272 Government securities: j HH eelldd bbyy thee iiuss ue deppartment i 89.787 89,787 89,787 89,787 89,787 89.787 89,787 89,787 Held by the banking department.. 641233 53,556 ! 72,061 159,816 278,304 283,732 346,037 209,955 Other securities 253,729 223300,221199 '; ' 551166,999988 ! 554455,441166 518,094 461.776 448,399 397.817 Total. 577,994 559,132 1,017,037 | 1,045,529 1,150,460 1,119,194 1,269,217 1,127,831 LIABILITIES. Proprietors' capital 70,822 70,822 70,822 70,822 70,822 70,822 70,822 70.822 Rest (surplus) , 15,827 16,994 15,978 16,118 16,111 16,005 15,850 16; 371 Public deposits 43,913 61,868 131,0(37 241.755 253,624 204.439 i 115,059 87,018 Other deposits. ^ 297,280 264,830 623,182 544'. 914 616,715 604:232 I 725.289 567,215 Seven-day and other bills.. 66 54 116 ' 87 107 50 j ' 48 68 Notes in circulation 141,086 144,564 175,872 171,833 193,081 223.586 j 342,149 386,337 Total. 577,994 559,132 1,017,037 I 1,015,529 1,150,460 1,119,194 1,269,217 1,127,831 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1008 FEDERAL RESERVE BULLETIN. October 1,1919. BANK OF FRANCE. [000 omitted.] Bee. 26, July 30, Dec. 10, Dec. 30, Dec. 28, Dec. 27, Dec. 26, July 31, 1913. 1914. 1914.1 1915. 1916. 1917. 1918. 1919. Gold in vault $678,856 8799,279 §799,359 $967,950 $652,885 I §639,682 §664,009 Other metallic reserve.. 123,532 120,689 67,750 67,953 56,910 ! 47,798 61,441 57,877 Total metallic reserve 802,388 919,968 867,109 1,035,903 709,795 687,480 725,450 750,515 Gold held abroad 326,766 393,162 393,162 381,808 Foreign credits ""263; 962 159,380 150,231 450,939 323,150 Government securities: Permanent investments | 57,900 57,900 57,900 57,900 57,900 57,900 57,900 Advances to the Government since out- j break of war I 694,800 965,000 1,428,200 2,412,500 3,309,950 4,496,900 Treasury bills discounted (advances to j foreign Governments) j 121,590 347,400 621,460 680,518 706,380 Other Government securities j "22^ 682* 21,882 21,742 21,805 21,757 21,793 Loans and discounts j 294,607 471,746 41,165 82,859 119,599 176,009 203,101 186,672 Bills matured and extended j 702,040 354,002 258,395 221,395 198,513 144,869 Advances on bullion, specie, securities,etc.! "149,7)74" 146,443 2150,686 222,320 254,326 236,386 234,633 243,188 B ank premises I 9,302 8,960 8,990 Sundry assets | 3^064 67,872 79,806 105,919 130,046 299,202 306,397 Total assets | 1,397,033 1,695,913 3,145,224 3,789,422 5,108,374 6,584,085 7,628,562 LIABILITIES. [ Capital I 35,223 35,223 ! 35,223 35,223 35,223 35,223 35,223 35,223 Surplus, including special reserves I 8,206 8,206 :. 8.292 8,292 8,292 8,292 8,294 Dividends unpaid ; 309 899 i. 4; 211 4,853 4,985 973 1,801 Government deposits ! 77,818 73,835 i 34,075 33,562 2,897 48,609 21,555 9,419 Other deposits ! Ill,038 182,881 ! 515,687 407,970 436,223 562,352 456,676 563,516 Bank notes in circulation I 1.102,715 1,289,855 i 1,927,306 2,568,801 3,219,012 4,311,002 5,838,172 6,759,772 Sundry liabilities | ' 61,694 105,014 !. 87,165 82,922 137,911 223,194 250,517 Total liabilities j 1,397,033 1,695,913 ! 3,145,224 3,789,422 5,108,374 6,584,085 I 7,628,562 1 No data available as at end of 1914. Incomplete data for Dec. 10,1914, taken from the annual report of the bank for 1914. 2 AdvancevS on securities only. GERMAN REICHSBANK. [000 omitted.] Dec. 31, July 31, Dec. 31, Dec. 31, Dec. 31, Dec. 31, Dec. 31, Aug. 15, 1913. 1914. 1914. 1915. 1916. 1917. 1918. 1919. Gold $278,453 $298,261 S498,089 8581,954 $599,873 $572,768 S263,343 Other metallic reserve. 60,886 65,409 8,774 7,633 3,884 43,161 4,764 4,722 Total metallic reserve 344,339 363,670 506,863 589,587 603,757 615,929 543,572 268,065 Imperial Treasury and Loan Bank notes 10,996 I 7,9G0 208,250 306,512 100,457 312,920 1,254,599 2,042,994 Notes of other banks 3,038 ! 2,740 1,264 745 332 160 715 1,571 Bills, checks, and discounted Treasury bills... 354,798 I 495,296 936,903 1,381,189 2,287,124 3,473,873 6,530,491 7,160,893 Advances on collateral 22,485 ! 48,121 5,443 3,079 2,322 1,217 1,429 2,102 Securities 96,012 j 94,392 8,086 12,227 19,932 21,220 37,159 32,891 Sundry assets 53,582 ' 51,901 51,173 64,791 186,622 497,752 569,060 458.359 Totalassets I 885,250; 1,064,081 1,717,! 2,358,130 3,200,546 4,923,071 8,937,025 9,966,875 LIABILITIES. Capital paid in 42,840 ! 42,840 42,840 42,840 42,840 42,840 42,876 42,840 Surplus 16,671 i 17,726 17,726 19,171 20,342 21,453 22,629 23,680 Reichsbank notes in circulation 617,240 ! 692,442 1,200,924 1,646,465 1,917.007 2,729,324 5,285,182 6,796,011 Other liabilities payable on demand. 188,763 ! 299,515 418,144 561,445 1,086; 281 1,915,993 3,291,924 2,280,367 Sundry liabilities 19,736 ! 11,558 38,348 88,209 134,076 213,461 294,414 823,977 Total liabilities. 885,250 j 1,064,081 1,717,982 2,358,130 3,200,546 4,923,071 8,937,025 9,966,875 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

INDEX. Acceptances: Page. Pugo. Banks granted authority to accept up to 100 Clearing-house bank debits 983-980 m per cent of capital and surplus '. 901 Collateral notes held by Federal Reserve Banks Holdings by Federal Reserve Banks during during August \)\)I August 99.1 Commercial failures reported 960 Purchases by Federal .Reserve Ban kg during Cost of living, discussion of 911 A ugust... -" 989 Credit and prices, discussion of 911 .Purchases by Federal Reserve Banks during 3 Crops statistics, by Federal Reserve districts 962 months ending Aug. 3.1 "... 990 Currency, changes in volume of, not responsible . Trade, conditional sales as the basis of trade for changes in prices 912 acceptances 964 Debits to individual accounts 983 980 Agricultural paper held by Federal Reserve Banks Directors of Nashville branch bank appointed 919 (luring August * 99.1 Directors of Federal Reserve Banks, election of Alabama banking laws, amendment to, relative to class A and B, date for opening polls 901 State bank membership in system 967 Discount rates: Amendments to Federal Reserve Act. (See Bank- Changes in, during war period 943 ing laws.) Discussion of 911 Antiprofiteering legislation, status of 967 In effect on Sept. 30 1006 Attorney General, opinion by, on sale of warehouse Discount and interest rates prevailing in various certificates on whisky held in bond 90S centers 972 Bank of England, condition of, 1913-1919 1007 Discount operations of Federal Reserve Banks: Bank of France, condition of, 1913-1919 1008 A ugust, by classes of paper 987 Bank transactions, debits to individual account.. 983-986 Member banks, number of, accommodated in Banking laws: August 987 Amendment to Alabama banking laws relative Three months ending Aug. 31, by rates charges?. 990 to State bank membership in system 907 Earning assets of Federal Reserve Banks held dur- Amendment to Federal Reserve Act authorizing ing August 988 domestic branches of member banks 960 Emerson, R. G., appointed assistant secretary of Amendment to Federal Reserve Act providing Federal Reserve Board .... 918 for Federal incorporation of institutions Export trade, discussion of 9.16 engaging in foreign banking 965 Exports: Amendment to section 25 of Federal Reserve Domestic exports of selected articles, 1910-1919. 95(' Act authorizing investments by national From the United States before and-after the banks in the stock of corporations engaged in outbreak of the war 952 foreign financial operations 965 (See also Imports and exports.) Amendments to section 5200 and 5202. R. S., Exports and loans to the allies, April, 1917-Juno, relative to limitations on loaning power of 1919 957 national banks 1 965 Exports and production of selected articles, 1910 Amendment to War Finance Corporation Act. 1919 956 extending aid to American exporters 966 Failures, commercial. reported 900 Banking situation., discussion of 917 Federal Advisory Council, meeting of :'>20 Branches, foreign, of American banks 962 Federal Reserve Banks, resources and liabilities Budget system, statement by Secretary Glass re- of 993-990 garding". - - - 937-942 Federal Reserve Board: Business and financial conditions during September. 921 Changes in organization 918 Special reports by Federal Reserve agents 927 Moehlenpah, Henry A., appointed member of.. 918 Certificates of indebtedness: Federal Reserve notes: Holdings of, by American banks on June 30. Changes in volume of, not responsible for 1919. \ ' 942 changes in prices 912 Issues and redemptions of, during September. 909, 958 Note account of Federal Reserve Banks and Letter of Secretary of the Treasury to all banks agents 997, 998 and trust companies regarding 958 Fiduciary powers granted to national banks 960 Chapman, W.T., appointed secretary of the Fed- Foreign banks of issue, condition of, 1913-1919 .1007 eral Reserve Board 918 Foreign branches of American banks 962 (•harts: Foreign exchange rates.'. 9.1.7 Note circulation, metallic and other reserves, German Reichsbank, condition of, 1913-1919 1008 also price of silver per ounce, in India, Gold imports and exports 918,1005 1914-1919 951 Governor of Federal Reserve Bank of Minneapolis, Par point map .... 992 R. A. Young appointed as.. 919 ("h art ors issued to national banks during September. 961 Herson, J. F., appointed chief Federal Reserve Check clearing and collection: examiner, eastern division ' W-) Col lection of checks drawn against a saving? Hoxton, W. W., appointed executive secretary of account, ruling on 964 Federal Reserve Board 918 Map sh owing States in which banks remit at par. 992 Imports and exports: N umber of nonmeinber banks on par list 992 Gold 918,1005 Operation of system. Aug. 16-Sept. 15 — 992 Silver 1.005 Par list, number of banks on 992 Index numbers of wholesale prices 907-97 i 139895—19 8 i Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

II INDEX. India: Rates: Page. Notes in circulation, composition of reserve, Acceptances purchased during August 991 and percentage of metallic reserve, July, Acceptances purchased during three months 1914-Aug., 1919 ;....!. 950 ending August 31 990 Silver and currency conditions in 945-951 Bills discounted during August 989 United States equivalent of London price of Bills discounted during three months ending silver per ounce, and value of silver in a August 31 990 rupee 949 Discount, in effect 1006 Interest and discount rates prevailing in various Earning assets of Federal Reserve Banks 989 centers 972 Interest and discount rates prevailing in vari- Investment operations of Federal Reserve Banks ous centers 972 during August 988 Reserves, computation of—Member bank not per- Law department: mitted to deduct a balance due from a foreign Amendment to Alabama banking laws relative banking corporation from the balance due to such •to State bank membership in the system 967 corporation in computing its reserve 963 Opinion by Attorney General relative to sale of Resources and liabilities: warehouse certificates representing whisky... 968 Federal Reserve Banks 993-996 Status] of antiprofiteering legislation 967 Member banks in selected cities 999-1004 Status of Federal banking legislation— Review of the month: Amendment to War Finance Corporation Public finance in September 909 Act extending financial aid to American Discount policy 910 exporters 966 Outlook for liquidation 909 Domestic branches of member banks 966 Expansion and discount rates 911 Federal incorporation of institutions en- Credit and prices 911 gaged in foreign banking 965 Federal Reserve notes 912 Investments by national banks in the stock Cost of living problem 914 of corporations engaged in foreign finan- Cost of living index and wage adjustment 915 cial operations, text of act as approved.. 965 The export situation 916 Limitations on loaning power of national Foreign financing and exchange 917 banks, text of act as passed by Senate The banking situation 917 and House 965 Gold movement 918 Liberty bonds: New member of Federal Reserve Board 918 Conversion of 4 per cent coupon bonds, circular Changes in organization 918 of the Treasury Department regarding 958 Directors of Nashville branch bank 919 Holdings of, W American banks on June 30, Meeting of Advisory Council : 920 1919.. ....•.". - 942 Rulings of the Federal Reserve Board: 'Liquidation of war finance investments 909 Collection of checks drawn against a savings Live stock paper held by Federal Reserve Banks account 964 during August. - 991 Computation of reserves—Member bank not Loans and discounts of State bank members, classi- permitted to deduct a balance due from a fication of 1007 foreign banking corporation from the balance Loans and exports to the Allies. April. 1917-June, due to such corporation in computing its 1919 1 .' 957 reserves 963 Maturities: Conditional sales as the basis of trade acceptances 964 Acceptances purchased during August 989 Savings account, collection of checks drawn against, Acceptances purchased during three months ruling on 964 ending August 3 990 Secretary of the Treasury, statement by, on the Bills discounted during August - 990, 997 budget system 937-942 Bills discounted during three months ending Silver imports and exports 1005 August 31 990 State banks and trust companies: Member banks: Admitted to system during September 961 Classification of loans and discounts of State Holdings of war obligations bv member banks bank members 1007 on June 30, 1919 ". 942 Number of, discounting during August 987 Trade, physical volume of 974-982 Number of, in each district 987, 992 Treasury certificates of indebtedness. (See Certi- Resources and liabilities of, in selected cities. 999-1004 ficates of indebtedness.) Moehlenpah, Henry A., appointed as member of Treasury financing during September, discussion of. 909 .Federal Reserve Board.: 918 United States war obligations held by American Money, stock, of, in the United States 1006 banks on June 30, 1919 " 942 X ashville branch bank, appointment of directors of. 916 Victory notes, holdings of, by American banks on National banks: June 30, 1919 ." 942 Charters issued to, during September 961 Wage adjustment: Fiduciary powers granted to 960 Discussion of 915 Holdings of war obligations by, on June 30,1919. 942 Extract from address of Hon. A. C. Miller before Upon market operations of the Federal Reserve American Association of Baking Industry 915 Banks 987 Whisky held in bond, sale of warehouse certificates Paddock, W. W., appointed chief of the division of representing, ruling by AttorncyGeneral regardoperations and examination 919 ing .' 968 Par list, (flee Check clearing.) Wholesale prices, index numbers of 967-971 Physical volume of trade 974-982 Will, J. A., appointed chief Federal Reserve exami- 'Prices and credit, discussion of 911 ner, western division 919 Prices, wholesale, index numbers of 969-971 Young, R. A., appointed governor of Federal Re- Profiteering, status of legislation controlling 967 serve Bank of Minneapolis 919 D Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FEDERAL RESERVE DISTRICTS rEOCRALRESERVE BANK CITIES O rEDERALRESERVE BRANCH C!Ti£S The branches at Helena, Mont., Los Angeles, Cal., and Nashville, Tenn., have been authorized by the Federal Reserve Board but are not yet open for Easiness, Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis