Federal Reserve Bulletin, 1920-03

FEDERAL RESERVE BULLETIN ISSUED BY THE FEDERAL RESERVE BOARD AT WASHINGTON MARCH, 1920 WASHINGTON GOVERNMENT PRINTING OFFICE 1920 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FEDERAL RESERVE BOARD. EX OFFICIO MEMBERS. W. P. G. HARDING, Governor. DAVID F. HOUSTON, ALBERT STRAUSS, Vice Governor. Secretary of the Treasury, Chairman. ADOLPH C. MILLER. JOHN SKELTON WILLIAMS, CHARLES S. HAMLIN. Comptroller of the Currency, HENRY A. MOEHLENPAH. ' GEORGE L. HARRISON, General Counsel. W. T. CHAPMAN, Secretary. W. W. HOXTON, Executive Secretary. R. G. EMERSON, Assistant Secretary. H. PARKER WILLIS, Director, Division of Analysis and Research. W. M. IMLAY, Fiscal Agent. M. JACOBSON, Statistician. W. W. PADDOCK, J. E. CRANE, Chief, Division of Operations and Examination, 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. Curtiss.. .| Chas. A. Mores ; Chas. E. Spencer, jr. W. Willett. ! | C. C. Bullen New York. Pierre Jay | Benj. Strong, jr.1 ! J. H. Case 2 L. H. Hendricks.3 ! L. F. Sailer3 E. R. Kenzel.3 J. D. Higgins.3 Channing Rudd.3 A. W. Gilbart.3 Philadelphia. R,. L. Austin Wm. H. Hutt, jr W. A. Dyer. Cleveland I). C.Wills.. E. R. Fancher. M. J. Fleming 4 H. G. Davis. Frank J. Zurlinden 4. Richmond... Caldwell Hardy George J. Seay. C. A. Peple Geo. H. Keesee. R. H. Broaddus Atlanta Joseph A. MeCord M. B. Wellborn I L. C. Adelson M. W. Bell. Chicago Wm. A. Heath J. B. McDougal | C. R. McKay S. B. Cramer. B. G. McCloud 4 St. Louis Wm. McC. Martin. D. C. Biggs j 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 ! 0. A. Worthington... J. W. Helm. Dallas I Wm. F. Ramsey. . R. L. VanZandt ' Lynn P. Talley Sam R. Lawder. San Francisco I John Perrin...'.... J. U. Calkins Wm. A. Day W. N. Ambrose. Ira Clerk.5 C. H. Stewart.5 i On leave of absence. 2 Acting governor. 3 Controller. * Assistant to governor. & 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. M emphis branch.. . J. J. Heflin. Cleveland: Little Rock branch. A. F. Bailey. Cincinnati branch L. W. Manning. Pittsburgh branch Geo. De Camp. Kansas City: Omaha branch. O. T. Eastman. Richmond: Denver branch. C. A. Burkhardt. Baltimore branch Morton M. Prentis. Dallas: Atlanta: El Paso branch.. R. R. Gilbert. New Orleans branch Marcus Walker. Houston branch. E. F. Gossett. Jacksonville branch Geo. R. De Saussure. Birmingham branch A. E. Walker. San Francisco: Nashville branch Bradley Curry. Los Angeles branch Ira Clerk (acting). Portland branch C. L. Lamping. Chicago: Salt Lake City branch. .. C. H. Stewart (acting). Detroit branch. R. T*. Locke. Seattle branch C. J. Shepherd. Spokane branch C. A. McLean. 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 sejit to not less than 10 names at a subscription price of $1 per annum. No complete sets of the BULLETIN for 1915, 1916, or 1917 are available. in Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

TABLE OF CONTENTS. Review of the month. 213 Business, finance, and industry, February, 1920: Summary 220 Special reports by Federal Reserve agents 231 Discount policy and credit control (extract from annual report of Federal Reserve Board) 239 Price control in England, France, and Italy 243 Address of Hon. R. McKenna before meeting of shareholders of the London Joint City and Midland Bank..... 247 Currency reform in India 253 Terms of sale in the principal industries 258 Official: State banks and trust companies admitted to the system 273 Charters issued to national banks 274 Foreign branches of American banks 272 Fiduciary powers granted to national banks 274 Rulings of the Federal Reserve Board • 276 Law Department: Warehouse acceptances covering goods under contract for sale and delivery at a remote period 277 Limitation upon the aggregate rediscounts of the paper of one borrower made for different member banks.. 278 Miscellaneous: Practice of handling bills of exchange in foreign countries 269 Commercial failures reported 274 Statistical: Wholesale prices abroad 279 Wholesale prices in the United States 282 Discount and interest rates prevailing in various centers 286 Physical volume of trade. 288 Debits to individual account, January and February 297 Gold settlement fund 300 Discount and open-market operations of the Federal Reserve Banks 303 Operation of the Federal Reserve clearing system 308 Growth of the Federal Reserve clearing system 310 Resources and liabilities of the Federal Reserve Banks 313 Federal Reserve note account 317 Condition of member banks in selected cities 319 Imports and exports of gold and silver 325 Estimated stock of money in the United States 327 Abstract of condition reports of State bank and trust company members on November 17, 1919 329 Condition of principal European banks of issue, 1913-1919 334 Discount rates approved by the Federal Reserve Board 328 Diagrams: Growth of the Federal Reserve interdistrict clearing system 312 Par point map 308 IV Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FEDERAL RESERVE BULLETIN VOL. 6 MARCH, 1920. No. 3 REVIEW OF THE MONTH. the calendar year 1919, and consequently would not be adversely affected should any The most marked feature of financial devel- recession of business take place during the year opments during the month of 1920. Secretary of the Treasury Houston, in Treasury finance.. February in their public aspects commenting upon this situation, noted in a has been the progressive withdrawal of the statement issued on February 3 that "although Treasury Department from the domestic credit the Treasury will of course be obliged to borrow market. Total receipts of the month, exclu- from time to time to meet the current deficit sive of transactions in the public debt, aggre- [which in February amounted to less than gated $229,527,341, of which amount $49,- $66,000,000], the fact that the Treasury has 276,050 represents receipts on account of in- no uncovered maturities is of immense imcome and profits taxes, while expenditures on portance/' the same basis aggregated $295,457,434, leav- The reason why the Treasury's position with ing a net current deficit for the month of reference to the certificate situ- $65,930,093. The Treasury afaon is oi so much importance d th B d Comparative statements of the public debt from the credit standpoint is on August 30, 1919,'when the debt reached its found in the fact that so long as large volumes peak, and February 29, 1920, on the basis of of certificates were maturing on dates when it daily Treasury statements, show a decrease, could meet them only by fresh borrowing, the principally from salvage and taxes, in the department might at any time have found floating debt of about $900,000,000 and in the difficulty in refunding. In such circumstances, total debt of about $1,192,000,000 in the last it was of course unavoidable that discount rates six months. should be largely controlled by rates estab- The last issue of the Treasury's loan certifi- lished primarily with a view to public borrowcates of indebtedness matured on February 16 ing. Secretary Houston, in this connection, and was accordingly redeemed. The retire- points out that as a result of the conditions thus ment of these certificates left the Treasury with referred to "it was consequently impossible for no floating debt represented by outstanding the Federal Reserve Board to exert any effecshort-term certificates requiring to be refunded. tive control over credit." A similar situation Tax certificates, anticipating income and excess was recently described in the address by the profits returns to the extent of $2,935,949,500, Right Hon. R. McKenna before the shareare still outstanding, about $850,000,000 of holders of the London City and Midland Bank. these issues falling due on March 15. The In discussing the relationship between the remaining certificates, however, mature on Government and the banking system, Mr. installment dates for the payment of income McKenna then said: and profits taxes, and the amounts of the "The Government has been a heavy borvarious maturities in no instance exceed the rower, and still may be, whatever the bank estimated amounts of the taxes payable on rate. Raising the rate depreciates all existing Government securities, which makes it difficult the installment dates. The tax installments to borrow from the public. As a result the which have thus been anticipated and which Government is driven to the Bank of England. are due during the calendar year 1920 are We know the consequences; the total of payable in respect to the income and profits of deposits and bank cash is increased, prices 213 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

214 FEDERAL RESERVE BULLETIN. MARCH, 1920. ;o up, and the currency is further inflated. The public credit situation in foreign coun- " e purpose of raising the bank rate is to tries has not shown the same prevent borrowing by making it too expensive, situation ' improvement which has been and by this means to restrict deposits and the issue of currency; but when the borrower is a noted in the United States. Government which may have to borrow, no While some progress has been made in the matter what the price, and which has the direction of restoring budgetary equilibrium power to compel the Bank of England to lend, in certain of the belligerent countries, and raising the rate not merely fails to achieve its while there has been a distinct improvement in intended purpose, but actually operates in the opposite way. Until the Government has the production and exportation of staples, the ceased to borrow, the bank rate can not have gradual withdrawal of the credit which has been its normal effect. It must be observed, more- extended by the United States in such large over, that these considerations apply with measure places upon the European countries in equal force when the borrowing by the Governan increasing degree the responsibility for the ment from the Bank of England is not to raise new money, but to pay off maturing debt held readjustment of their own affairs. European by the public or the banks, and not renewed Governments have maintained, since the cessaby them." tion of hostilities, embargoes upon the export of gold. The rectification of the exchanges What has happened in the United States now adverse to Europe lies primarily in the with reference to bank rates and the control hands of European Governments. The normal of credit as noted by the Secretary of the method of meeting an adverse international Treasury is thus parallel to the situation which balance is to ship gold. A refusal to ship gold has existed in Great Britain. The improveprevents the rectification or stabilization of an ment which has taken place in our own finances adverse exchange. The need of gold embaropens the way to a more effective use of the goes for these countries lies in the expanded rediscount rate as a means of credit regulation. currency and credit structure of Europe. Re- From the standpoint of the general investing lief would be found in disarmament, resumppublic, the fact that the Treasury of the United tion of industrial life and activity, the imposi- States is no longer in the position of a borrower tion of adequate taxes, and the issue of adeis of importance for the general welfare of the quate domestic loans. It is probably not gencountry but incidentally, as well, to the holderally realized that during the past year in vaers of Liberty bonds and Victory notes, since rious ways the Government of the United the danger of the Treasury's being obliged to States has made available to European counborrow large sums to meet maturing certifitries something like $4,000,000,000, or since the cates upon disadvantageous terms has been armistice considerably more than that. The eliminated. The position of the Treasury toamounts thus extended have been officially day and the future of the market for the outcomputed as follows: standing issues of Liberty bonds and Victory notes is very bright. The whole color of the Direct advances ' $2,380,891,179. 65 picture would, of course, be changed if Con- Funds made available to those Govgress should embark upon new expenditures on ernments through the purchase of a large scale. The problem to-day is that of their currencies to cover our exgiving the people time and will to save capital penditures in Europe 736,481, 586. 76 Army and other governmental supsufficient to enable them to absorb that part plies sold on credit (approximately). 685,000,000.00 <*f the war issues which is still owned or loaned Relief (approximately) 100,000,000.00 upon by banks as well as the securities which Unpaid accrued interest up to Jan. 1, are being pressed upon our markets from for- 1920, on allied government obligaeign sources in consequence of the extreme de- tions 324,211, 922. 00 pression in European exchanges. Total 4, 226, 584, 688. 41 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MARCH, 1920. FEDERAL RESERVE BULLETIN. 215 Secretary Glass, in commenting upon the sentatives which has had under advisement a condition abroad in a statement made public bill to provide for definitely funding the inon January 28 as a letter addressed to Homer terest obligations of the European countries. L. Ferguson, president of the Chamber of Com- The plan before the committee contemplates merce of the United States, says with reference the issuance of further bonds to represent the to the policy of our own Government that— recurring interest payments, such bonds to be "It can not undertake to finance the re- accepted in lieu of the interest for a period of quirements of Europe because it can not shape three years, and further a release of the forthe fiscal policies of the Governments of eign countries from the interest upon the bonds Europe. The Government of the United States thus given in lieu of interest settlements for can not tax the American people to meet the a period of years. This is in line with the deficiencies arising from the failure of the Governments of Europe to balance their budgets, program developed by Secretary Glass in disnor can the Government of the United States cussion with the representatives of foreign tax the American people to subsidize the busi- nations during the summer, and by him brought ness of our exporters. It can not do so by to the committee of Congress at the opening of direct measures of taxation nor can it look the present session, as indicated in his annual with composure upon the manufacture of bank credit to finance our exports when the require- report in which he said that— ments of Europe are for working capital rather "The Treasury is considering with reprethan for bank credit." sentatives of the Governments of the Allies The position of the Treasury Department the funding of the demand obligations which the United States holds into long-time obligaunder Secretary Houston, as has already been tions and at the same time the funding during made plain, is identical with that adopted by the reconstruction period or, say, for a period Mr. Glass. It is further of much interest to of two or three years, of the interest on the note that following closely upon the latest an- obligations of foreign Governments acquired by nouncements of the attitude of the Govern- the United States under the Liberty loan acts." ment of the United States, expressions have The progress of the second phase of the plan been made public by British authorities, both suggested by the Treasury Department for the in the United States and in London, to the relief of European nations—the appropriation effect that British governmental policy is of a sum of $150,000,000 for the actual furnishopposed to obtaining further loans in the ing of necessities—has been slow. A bill to United States and is favorable to the restora- authorize the use of funds for this purpose is tion of a normal balance of trade as rapidly as still under advisement, but the expectation is, conditions will allow. however, that definite action on this side of These views as to the further increase of the relief proposal will be obtained in the near governmental international in- future—action which would result in rendering lief debtedness for the future in it possible to carry out the suggestions made in no way alter the announced by Mr. Herbert Hoover in the statement made policy of the Government with respect to the public by him on January 6, in which he two branches of credit extension to which formulated the problem as that of helping out assent has already been given—the proposed with the bread supply of about 5 per cent of arrangement for funding the interest upon the population of Europe through the shipment already existing debt and the extension of of foodstuffs and other necessities to the disdirect relief to the peoples of Europe who are tressed districts. in a condition of want or destitution. With The carrying out of the program for dealing reference to the first phase of the problem, with the European situation testimony was furnished by Assistant Secretary °f 6X" thus outlined necessarily inof the Treasury Davis on Friday, February 13, volves some suffering. Not the before the committee of the House of Repre- least difficult element in the change of attitude Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

216 FEDERAL RESERVE BULLETIN. MARCH, 1920. which is necessitated by the new point of view The very great reduction in the buying is of a psychological nature. As Mr. Hoover power of the European currencies which has has expressed it, " the world needs to get away thus brought some of them almost to the vanishfrom the notion of governmental help, both in- ing point in international trade, marks being ternally and externally, and get back to work worth at their low point little more than a and business." It has not, however, been able cent each, with Austrian crowns still lower, to accomplish this desirable object thus far, has been due not merely to the adverse balance and it is the recognition that such a transition of trade but to bad banking and currency conmust be made at an early date which has brought ditions abroad. Were it the result solely of about renewed demoralization of exchange unfavorable trade balances it would have conditions during the past few weeks. The demade itself manifest only in connection with cline in exchanges, upon which comment has international business. The foreign currenalready been offered in the December and cies would, in other words, have retained in January issues of the BULLETIN, has continued large measure their original buying power at during the month of February, demand sterling home. This, however, has not been the case, having reached a record low point ofF$3.18 but there has been a continued depreciation of early in the month, while other European expaper currency in most of the European changes were, relatively speaking, even weaker. countries as compared with gold from the The following tabular statement of exchange domestic standpoint. The situation is well conditions continues that already furnished in illustrated in the gold premium which has been previous issues of the BULLETIN and indicates found to exist in London. That premium rethe extreme disorganization which set in early duced to a basis of percentages may be stated in the month, as a result of lack of further as varying from 50 per cent on January 31 to credit to finance exports of goods and recog- 43.9 per cent at the end of February. Annition on the part of the public that even present obligations incurred by European other way of testing the actual situation debtors in ordinary trade would not be easy to abroad is furnished by the course of prices in provide for. those countries. This price development may be illustrated for a few of the principal nations Foreign exchange rates. by a tabulation of index numbers as follows: Fel). 7. Feb. 14. Index numbers of wholesale prices. High. Low. High. Low. • (1913=100.) England 3.49J 3.19 3.43 3.35* France. . 13.44 15.15 13.92 14.55 Italy. ... . 16.08 19.72 17.62 18.77 France S TT p o a n i g n lcon g 9 4 1 9 3 7 . . . 5 1 9 0 2 5 J 9 4 1 7 3 7 . . . 0 0 0 0 0 0 1 1 4 0 7 3 6 . . . 6 2 2 0 5 5 1 4 1 0 3 2 7 . . . 1 0 4 2 0 5 * K (S U in t n a g i t d t i e s o d t m ). d ( t B e i s u l t a l i l q e S u t t i e a n - It B a a l c y h ( i P ) r . of. China (Shanghai) 163.00 161.00 167.00 159.00 G6"n<3rale). Japan 48.75 48.00 48.62^ 48.25 1919. Fell.21. Feb.28. J F a e n b u r a u r a y ry 2 2 2 2 0 4 3 3 4 4 8 0 323 March 217 337 326 April 217 332 330 High. Low. High. Low. May 229 325 337 June 235 329 355 July 243 349 359 England 3.47£ 3.35i 3.41$ 3.354 August 250 347 367 France 13.22 14.38 14.12 14.34 September 253 360 369 Italy . 17.65 18.30 18.14 18.38 October 264 382 387 Spam 17.52 17.20 17.40 17.30 November 272 405 435 Argentina 43.25 43.125 43.75 43.50 December 276 417 456 Hongkong 98.50 97.00 97.00 96.00 China (Shanghai) 149.00 147.00 147.00 143.00 1920. Japan 48.125 48.00 48.00 47.75 January 288 487 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MARCH, 1920. FEDERAL RESERVE BULLETIN. 217 From our own standpoint the arrival of a which they had been lending in financing the turn in the tide of trade be- movement of goods to other countries. In icanhexportsfm6r" tween this country and Europe several different ways this growing disinclination has been indicated by the long on the part of the banks to become responsible expected decline in the movement of goods for export conditions has been exhibited. Early abroad. Figures reported by the Department in February various banks in New York and of Commerce for our export trade, it is true, elsewhere indicated to customers an indisposishow for January an advance of $49,000,000 tion to discount bills drawn in dollars and over December. The real situation is not, how- growing out of trade with Europe. Up to that ever, reflected in these gross figures for the time there had been a fairly responsive attitude period ending with January, but is, in the opin- on the part of American banks in taking on ion of exporters and importers, undergoing a business which involved the carrying of exrapid change. In several important lines, such change risks by foreign banks, but with the as meat products, the falling off is already decline of exchanges came an increasing recogauthoritatively noted. The decline in ship- nition that foreign bankers might easily get ments of merchandise thus indicated has had into a position in which they would find it its direct effect in a reduced activity of, and difficult or impossible to meet the obligations demand for, ocean tonnage. This reduction in incurred by them, should our export movement activity has led to some curtailment in freight continue heavy. This refusal to discount bills, charges, while there has also been a beginning even when stated in dollars, except in unusual of transference of tonnage from the Atlantic to circumstances, has naturally tended to curtail the Pacific coast and from the east and west the support rendered by the banks in the foreign Atlantic line to some of the routes between the trade. A further step which has been mark- United States and South America. Coupled edly influential has been seen in the fact that with this change in export movements and business houses, which had been accumulating tonnage conditions has been a certain conges- large balances abroad and which had been action of goods in warehouse or storage, owners commodated by American banks to the extent determining not to continue shipments abroad of a.substantial proportion of the current exin view of the unfavorable quotations of foreign change value of such balances, have found it currency and the difficulty of financing the much more difficult to obtain accommodation products which they had been in the habit of upon this sort of security. Bankers have recogshipping. A natural consequence of this tend- nized that the continued large extensions of ency to retain goods at home has been a cur- such a kind would inevitably result in a situatailment of certain classes of prices. The tion in which the collateral might become inadereduction is thus far only sporadic, but unmis- quate, while the borrower would be in no positakable symptoms of it have already been tion either to take it up or to furnish additional noted in various commodities. Such reduc- protection. Finally, the attitude of the banktions have been aided by the fear on the part ing community has been increasingly adverse of some that embargoes would be established to loans secured by products stored in foreign in Great Britain and perhaps in other countries countries and awaiting sale. Immediately against the importation of American goods with after the armistice there was a considerable exa view to restricting the further growth of un- portation of goods on consignment account to favorable exchange quotations. various foreign points because of the belief that Quite as powerful as the influence of un- the great shortage of goods in Europe would favorable exchange quotations, create a profitable market for whatever we °f eX"and directly associated with the might be able to export and that those who latter, has been the tendency of could actually offer the goods when wanted American banks and banking houses during the would be able to control the trade. In view of month of February to limit the accommodation the fact that Europe's buying power was much Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

218 FEDERAL RESERVE BULLETIN. MARCH, 1920. less vigorous than had been predicted by many Proposals put forward in France during the it has been necessary to carry considerable past few weeks for the increase of taxation in quantities of these goods for periods of some that country afford encouragement with referlength and they have been in many cases ence to the development of French economic financed by American banks. A disposition policy in its application to banking, while those to discontinue this type of financing necessarily in process of development in Italy are still tends not only to bring about the sale of these more positive. Coincident with the development of these proposals has been the reply by goods abroad and hence to forestall further the authorities of the British exchequer to the exportations from the United States but is also international exchange memorial filed with it proving a very discouraging factor in connection by influential men who presented the memorial with exportations from this country which to the British Government at the same time might otherwise have occurred. that it was handed to our own Treasury au- An essential element in the rectification of thorities. The policy of the exchequer as outthese conditions will be found lined in this answer points strongly to the systek" m the reform or modification of matic pursuit of sound methods of finance, the the foreign banking situation. continued assessment of taxation, and the re- There is thus far but too little reason to look duction of public indebtedness as rapidly as forward to an immediate improvement. Re- possible. The difficulties of the situation, howserves at the Bank of England have shown ever, are great, and it will evidently be some some improvement, although it has been spo- time before genuine improvement can be asradic and uncertain. The following figures illus- sured. Meanwhile, a disquieting factor in the trate the gradual development of conditions situation is the steady increase of prices abroad, in leading foreign countries, reserves being con- to which reference has already been made in trasted with the amounts of deposits in cen- another connection, and which seems to inditral banks and total notes outstanding: cate the growth of inflation. One criterion of the progress of economic re- Central bank deposits, total note circulation, and gold reserves in Great Britain, France, and Italy. covery in foreign countries is seen in their relationships with [In millions of dollars.] one another. Of these perhaps Great Britain. Bank of France. Italv. the most available tests are furnished by the figures showing exporting power and exchange End of month. quotations. In the following brief comparison is presented data showing the capacity of Great Britain, France, and Italy to export, as tested 1919. by their aggregate shipments abroad. January 1,834 6,173 2,628 February 1.874 6,314 2,613 Exports of United Kingdom, France, and Italy during 1919. March./. 1,955 6,441 2,684 April 2,071 6,558 2,799 [In millions of dollars at gold parity.] y 2,051 6,574 2,749 J J A u u u l n y g e ust » 2 2 1 , , , 0 0 9 4 3 9 7 5 9 6 6 6 , , , 6 7 7 4 7 6 7 2 0 2 2 2 , , , 9 9 8 8 2 0 7 5 9 1919 K U in n g i d te o d m. France. Italv. September 9 2,009 6,907 3,157 October 9 2,040 7,136 November 9 2,057 7,223 January 253 58 44 December 9 2,168 7,194 February 253 56 51 March 302 79 60 1920. April 350 68 59 January 756 9 2,014 625 615 7,253 744 May 369 83 June 372 92 1 2 C P u u r b r l e i n c c a y n a d n o d t h B e a r n d k e p o o f s E it n s. gland notes. J S A u e u l p y g t u em st ber 4 3 4 0 7 3 0 5 8 1 13 1 4 9 11 7 0 2 3 4 I I n n c c lu lu d d e i s n g G o $ v 13 e 8 rn ,6 m 95 e ,0 n 0 t 0 a h n e d l d o t b h y e r t h d e e p e o x s c i h ts e . quer. N O o ct v o e b m er ber 4 5 8 2 0 3 1 1 3 3 9 4 124 & Exclusive of gold held abroad. December 570 6 Includes deposits of the three banks of issue, viz: The Bank of Italy, the Bank of Naples, and the Bank of Sicily. 7 Includes notes of the three banks of issue, and of the Treasury. NOTE.—Figures for United Kingdom include domestic and foreign * Includes reserves of the three banks of issue, and of the Treasury. products. Figures for France and Italy include domestic products only. 9 Exclusive of Bank of England notes held by the exchequer as reserve Figures for Italy include silver bullion. Money conversions are made at against currency notes outstanding. normal parity. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MARCH, 1920. FEDERAL RESERVE BULLETIN. 219 Foreign exchange relationships between these With South American countries: countries may be best studied by considering Argentina -f- 43 Brazil + 119 the variation of the pound sterling from normal With the showing as to merchandise there in the French and Italian markets and of the may also to advantage be compared the figures franc and lira in the British market. showing the movement of gold which have Exchange rates on United Kingdom, France, and Italy. been presented in a separate column: London London Paris on Italy on United States movement of gold, 1919. End of month.* on Paris. on Ita Oil..13 . London. [In millions of dollars.] European countries: Francs Liras Francs Liras 1919. per £. per £. per £. per £. United Kingdom and Canada +40. 7 January... 25.98| 30.311 25.98$ 30.311 France — 4.1 February.. 25.98 30.311 25.97f 30.311 March 27.40 37.00 27.62* 33.50 Oriental countries: . A M p a r y il 2 2 8 9 . . 2 8 2 5 3 3 4 9 . . 7 5 5 0 2 29 8 . . 4 3 0 7J 3 3 7 5 . . 9 2 5 0 British India -34. 3 June 29.85 36. 80 29.71$ 36.87$ Japan —94.1 July 31.02 37.65 31.42^ 37.69$ August 33.87$ 40.85 33.97J 40.75 China -39.1 S O e c p to te b m er ber. 3 3 6 5 . - 2 4 2 5 £ 4 4 3 1 . . 3 1 7 0 J 3 3 6 4 . . 0 7 5 0 4 4 3 1 . . 0 2 7 0 £ Hongkong -30.1 November. 39.35 4900 39.26 49.00 South American countries: December.. 40.05 49.12J 40.02J 49.37$ Argentina —56. 5 January... 1920. 46.25 54 75 46.32$ 54.05 Venezuela —11. 7 February s 49 90 67.15 49.90 67.15 Mexico — 5. 9 1 London quotations are cable averages for Thursday of last week of The latest returns covering the month of the month as quoted by the London Economist. Foreign quotations on January seem to indicate a continuance of London are averages for date quoted by the Economist for the last week of the month. Paris quotations are for checks, Italian sight. the tendencies thus exhibited by the com- 2 February quotations furnished by Guaranty Trust Co., New York City. plete figures for the year 1919. It is not The one-sided character of our export trade to be expected that the volume of our gold Our one-sided is illustrated by the difference exports should correspond to the trade balance export trade. i ^ exchange situation grow- between ourselves and any given country, n e ing out of our relations to Europe on the one even if the "invisible balance7' be left out of hand and our relations to the Orient and South account. This invisible balance representing America on the other. This difference in services, interest payments, and the like, is situation may best be illustrated by the follow- itself an important factor in the situation. ing brief table furnishing a review of the posi- The lack of correspondence in exports and tion of selected countries during 1919, those imports is a frequent phenomenon in foreign which have a net export balance in our favor exchange, and grows out of the fact that a being indicated by the minus sign, while those third country may be in debt to the nation which have shipped us more goods than we to which we are sending gold and may have have sent them and with which our export drawn upon us under credits established here balance is therefore unfavorable being indicated for the purpose of paying its debts through by the plus sign. gold exportations. Conditions of this kind are especially likely to occur under present United States trade balance, 1919. circumstances, due to the fact that the United [In millions of dollars.] States being practically the only free gold With European countries: market in the world, many transfers and shifts United Kingdom -1,970 France 770 of balances and cash are often made for the Italy 384 purpose of effecting international settlements, Netherlands 180 while the United States and its banks are With oriental countries: employed as a base for these operations. A British East Indies 241 conspicuous example of the kind is seen in Japan 43 China :.... 49 the rapid reduction of the balances carried Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

220 FEDERAL RESERVE BULLETIN. MARCH. 1920. by foreign banks with American institutions. Reserve System as a whole have shown a dis- These balances had grown during the war to tinct tendency toward decrease. This is exvery large proportions, but since the armistice hibited as follows: they have in many cases declined sharply, Jan. 23 44. 8 funds being used for the purpose of settlement Jan. 30 44, 5 of obligations and of purchasing commodities Feb. 6 44.1 here, but partly also for the adjustment of Feb. 13 43. 2 Feb. 20 42. 7 obligations in other countries which had Feb. 27 42. 5 become pressing. There are thus factors growing out of the international situation This decrease is only partly due to continued to-day which are not solely due to the one- maintenance of the demand for credit and must sided character of our balance of trade, be partly ascribed to the continuous demand although that affords the basis for it. The for gold for export. On this subject the Board continuance of a condition in which we in its annual report, issued on February 23, export substantially, even if not enormously, says: to Europe, but receive little from her, while The combined reserves of the 12 Federal Reserve Banks we draw our imports from other countries, on January 3,1919, amounted to 51.3 per cent of their liayet are not able to pay for them in goods, bility for deposits and note issues. Due partly to the gold embargo, this percentage was well maintained during all must necessarily lead to a continuous drain on the period of uncertainty which preceded the flotation ef our stock of accumulated gold. the Victory loan and for some time thereafter, for not until In an analysis of the gold situation recently July 9, after the gold embargo had been removed, did the issued by a New York banking institution, reserves fall even fractionally below 50 per cent. On Sep» tember 26 the reserves stood at 51 per cent, after which date it is pointed out that "aside from the obvious they show a steady and continuous decline to 44.8 per cent geographical distribution of the countries on December 26. [receiving gold from us]—all, except Spain, Although the period of war financing did not terminate either in the Orient or in South America— with the year 1918 and the Federal Reserve System waa it is clear at the first glance that all these consequently under the continued strain of war finance, that strain had to be met without the aid of war restrictions. nations are essentially providers of raw mate- The safeguards afforded by these restrictions were rerials for the remainder of the world. If we moved, for it was impracticable to continue them in time consider our trade balances with these coun- of peace. There is no longer an embargo on exports of tries during 1919, so far as they have come to gold nor any regulation or control of foreign exchange, hand, we find that in most cases there was a with the trifling exceptions already noted; the controls set up over exports and imports, production and consumpconsiderable excess of imports into the United tion, with a view of conserving the national resources and States over our exports to them." reducing waste, have practically disappeared. As a result It is also noted that "our net exports of the problems of the Federal Reserve System'have been silver during 1919, meanwhile, were unim- greatly increased, more particularly the problem of conportant, save to four nations. In these trolling credit. cases the figures, in millions, were: British The following figures, in continuation of those India, 109.2; China, 77.6; England, 15.6; furnished in the last issue of the] BULLETIN, Hongkong, 10.2." render possible a study of the development of Notwithstanding the restoration of more the portfolios of jthe member banks and hence normal conditions in some lines make it feasible to draw somejconclusions con- Reserve per" of industry, there has been but cerning the actual working of present methods centages. little change in the banking out- of credit limitation as independent of tbf gold look. The reserve percentages of the Federal export situation. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MARCH, 1920. FEDERAL RESERVE BULLETIN. 221 [In millions of dollars.] tina, $51,354,000 to Hongkong, $48,412,000 to China, $35,506,000 to British India, and $29,- Loans Rediscounts (including and bills 778,000 to Spain, the remainder being ship- Number rediscounts) payable Net demand Date. of banks and invest- with deposits. ped principally to Mexico, Uruguay, Dutch reporting. ments (in- Federal cluding U.S. Reserve East Indies, the Straits Settlements, and Venesecurities). Banks. zuela. During the same monthly period the net out- 1920. J Ja a n n . . 2 9 8 7 0 9 2 8 1 1 6 6 , , 8 7 6 5 8 3 1 1 , , 7 8 2 7 9 0 1 1 1 1 , , 6 5 0 4 9 9 ward movement of silver was $14,632,000, as J Ja a n n . . 2 1 3 6 8 8 0 0 3 4 1 1 6 6 , , 8 8 5 4 2 1 1 1, , 8 7 2 5 4 7 1 11 1 , , 5 7 3 4 6 0 compared with a net outward movement of J F a e n b . . 3 6 0......... 8 8 0 0 4 4 1 1 6 6 , , 7 7 5 6 8 2 1 1 , , 8 8 3 9 4 5 1 1 1 1 , , 4 4 7 7 8 7 $8,138,000 for the month ending January 10. F F e e b b . . 2 1 0 3 8 80 0 6 5 1 1 6 6 , , 8 7 2 6 6 2 1 2 , , 9 0 8 5 8 7 1 1 1 1, , 6 4 0 1 4 7 Net exports of silver since August 1, 1914, were Feb. 27 805 16,849 2,143 11,457 $447,374,000, as may be seen from the followt ing exhibit: During the month ending February 10 the [In thousands of dollars.] net outward movement of gold wSSUSi'*'"™* $38,117,000, as compared Excess of Imports. Exports. exports with a net outward movement over imports. of $26,553,000 for the month ending January 10. Net imports of gold since August 1, 1914, Aug. 1 to Dec. 31,1914. 12,129 22,182 10,053 Jan. 1 to Dec. 31,1915.. 34,484 53,599 19,115 were $727,402,000, as may be seen from the Jan. 1 to Dec. 31,1916.. 32,263 70,595 38,332 Jan. 1 to Dec. 31,1917.. 53,340 84,131 30,791 following exhibit: Jan. 1 to Dec. 31,1918.. 71,376 252,846 181,470 Jan. 1 to Dec. 31,1919.. 89,410 239,021 149,611 Jan. 1 to Feb. 10,1920.. 12,124 30,126 18,002 [In thousands of dollars.] Total 305,126 752,500 447,374 Excess of imports Imports. Exports. over Mexico furnished almost three-fourths of exports. the $7,788,000 of silver imported during the monthly period ending February 10, while most Aug. 1 to Dec. 31,1914 23,253 104,972 181,719 Jan. 1 to Dec. 31,1915 | 451,955 31,426 420,529 of the remainder came from Peru and Canada. Jan. 1 to Dec. 31,1916 1 685,745 155,793 529,952 Jan. 1 to Dec. 31,1917 | 553,713 372,171 181,542 Of the silver exports, amounting to $22,420,000, Jan. 1 to Dec. 31,1918 ! 61,950 40,848 21,102 J Ja a n n . . 1 1 t t o o F D e e b c . . 1 3 0 1 , , 1 1 9 9 2 1 0 9 ! j 1 7 2 6 , , 3 5 0 3 4 4 3 6 6 4 8 , , 6 1 5 8 7 5 1 1 2 5 9 2 1, , 6 3 5 5 1 3 $16,745,000 were consigned to China, $2,- 551,000 to Hongkong, and $2,321,000 to Can- Total 1,865,454 1,138,052 727,402 ada, the remainder going to Mexico, Panama, 1 Excess of exports over imports. England, and Honduras. Over 93 per cent of the $11,812,000 of gold The effects of the higher discount rates imported during the monthly period ending applied by the Federal Reserve February 10 was received from Canada; Mexico System have *">t 7«* ^ad opand New Zealand furnishing most of the re- portunity to make themselves mainder. Of the gold exports, amounting to fully felt. In some parts of the country very $49,929,000, over one-half, or $25,050,000, direct results are recorded as having been was consigned to Argentina, $8,811,000 to experienced, while in other parts of the Hongkong, $3,367,000 to China, and $4,000,000 country the situation is not so obvious. The to Mexico, the remainder going principally to Federal Reserve Bank of New York, in analyzthe Straits Settlements, Japan, Dutch East ing the situation, says: Indies, and Uruguay. Since the removal of The contraction of bank credit which has taken place in the gold embargo on June 7, 1919, total gold this district, particularly in New York City, has not had its counterpart in the country as a whole. In the four exports have amounted to approximately weeks ended February 13, the 71 banks in New York City $418,450,000. Of this total, about $99,820,000 which report weekly to the Federal Reserve Board reduced were shipped to Japan, $81,610,000 to Argen- their loans $178,000,000. The 733 reporting banks else- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

222 FEDERAL RESERVE BULLETIN. MARCH, 1920. where in the United States, however, increased their loans 191.8 millions in total loans and investments in the same four weeks' period $67,000,000, thereby (less rediscounts). During the same period partially offsetting the decrease made in New York City. collateral loans of reporting banks held by The reduction of loans on stocks and bonds in so far as any Federal Reserve Banks increased 164.2 milhas been made has taken place in this district. Thus, while New York City banks were reducing such loans lions, so that the margin between the loans and $130,000,000, banks elsewhere kept them on the average investments of the reporting banks and their almost stationary from a month ago. borrowings from the Federal Reserve Banks Bank deposits in this district declined rapidly, thereby shows a decrease of 356 millions. Government, continuing the movement, unusual for this time of year, as well as other demand deposits (net), show observed a month ago. The deposits of New York City banks were $285,000,000 lower than on January 16. Of considerable declines, the former by 266.3 milthat reduction $136,000,000 was in the single item of lions and the latter by 189.3 millions, these re- Government deposits, which have been withdrawn ductions apparently accounting largely for the rapidly during the period. Elsewhere in the country, decline of 75.6 millions in the banks' reserve despite the increase in loans, deposits have declined balances with the Federal Reserve Banks. $217,000,000, of which more than half was because of the withdrawal of Government deposits. The following table Data for the Federal Reserve Banks covering gives the important figures: the period between January 23 and February [In millions.] 20 indicate considerable increases in loan and note issue operations. Holdings of paper i 7 n 1 N re e p w o r Y tin o g rk b C a i n t k y s . 8055 a rre l e l p p d oo i r s rtt ii i t n ri g c t b s. a 1 nks, secured by Treasury certificates show an increase for the period of over 60 millions, Date. Total Total notwithstanding the considerable reduction in I loans and Total loans and Total invest- deposits. invest- deposits. the volume of outstanding certificates effected ments. ments. during the period. Holdings of paper secured Feb. 13,1920 $5,341 $5,017 $15,715 $14,108 by Liberty bonds and Victory notes increased Feb. 6,1920. 5,424 5,065 15,814 14,178 Jan. 30,1920.. 5,479 5,117 15,844 14,258 78.7 millions following the restoration of a Jan. 23,1920.. 5,487 5,147 15,866 14,326 Jan. 16,1920.. 5,519 5,292 15,826 14,600 differential of one-half per cent in favor of this Jan. 2,1920... 5,595 5,401 15,792 14,572 Oct. 10,1919.. 5,850 5,397 15,476 13,699 class of paper as against ordinary commercial Jan. 3,1919... 5,153 4,763 13,697 12,071 paper, the holdings of which increased by 1 The number of reporting banks throughout the country increased 66.2 millions. from 757 on Jan. 3, 1919, to 805 on Feb. 13,1920. In the same time the eporting banks ia this district increased from 65 to 71. For the four weeks under review the total Largely as the result of considerable redemp- discounts of the Federal Reserve Banks are tions of Treasury loan certifi- thus seen to have increased by about 205 ates> aggregate holdings of millions, totaling on the closing date of the Government war securities re- period 2,358.5 millions, of which about 65 per ported by over 800 member banks in leading cent was war paper. Apparently as the result cities show a decrease of about 162 millions of the differential treatment of war paper the between January 16 and February 13. During average maturity of bills held by the Federal the same period the amount of war paper Reserve Banks shows a considerable decrease carried by these banks (less rediscounts) fell through a substantial decline of 90-day paper off about 80 millions. There is also shown sub- on the one hand and a more than correspondstantial contraction of loans secured by stocks ing gain in the holdings of 15 and 60 day and bonds, though liquidation under this head paper. Following the adoption by the Federal is practically limited to New York banks. On Reserve Banks of a special 5 per cent discount the other hand, all other loans and investments, rate the holdings of acceptances purchased in exclusive of rediscounts, composed mainly of open market declined from 575.8 to 531.7 ordinary commercial loans, increased during millions. During the same period the New the period by about 187.2 millions. The net York and Philadelphia banks increased their result of these changes is seen in a decrease of rediscounts with other Federal Reserve Banks Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MARCH, 1920. FEDERAL RESERVE BULLETIN. 223 from 75.4 to 93.9 millions. On the other hand, intervals until the establishment of our Federal holdings by other Federal Reserve Banks of Reserve System, America suffered greatly for lack of capital and credit and because of acceptances sold by the New York and Boston her depreciated currency, and, later, her Reserve Banks declined from 48.7 to 30.4 inelastic currency. In those days Europe came millions. to America's aid, not by Government loans, As the result of moderate decreases in both not with any comprehensive plan, but by the members' reserve and Government deposits, investment of private capital upon attractive terms in American enterprises and in the purthe Federal Reserve Banks' deposit liabilities chase of American securities at bargain prices. show a decline from 1,817.8 to 1,785.8 millions. Europe profited enormously by these invest- On the other hand, Federal Reserve note cir- ments and America profited too, because she culation expanded during the period from obtained the capital she needed at the price 2,844.2 to 2,977.1 millions, or at an average that the capital was worth to her. Honest and energetic business men in both countries went weekly rate of 33.2 millions, while gold reserves, to wor,k in their own way and solved the mainly in consequence of export withdrawals, problem on business terms." show a further reduction of 56.8 millions. The Brief mention has already been made of the combined result of these changes is seen in the report of the Federal Reserve Board which was continuous decline of the banks' reserve ratio issued to the public on* February 23. In the from 44.8 to 42.7 per cent. report the Board has restated its policy with Very low price levels for investment securi- Change in in- ^es naYe been noted during the respect to discount rates and credit along lines vestment condi- month. Rates for call money already made familiar in the BULLETIN, but tlons' have, however, owing to lack of which may be briefly reviewed as follows: demand, continued during most of the month on The normal and traditional method of credit control has been the discount rate; its efficacy a decidedly more reasonable level than at any however, presupposes normal conditions. An time in the recent past, both the call and readvance in rate operates under normal connewal rate being during a part of the time in the ditions not only to diminish the demand for neighborhood of 6 per cent although subject credit by making certain activities unprofitable 4 to considerable fluctuation from time to time. but as well to increase the supply of credit by attracting it from other centers or countries. It has been inevitable that depression in un- The conditions that make this traditional conquestionably good investment securities should trol effective do not all exist at the present occur as one consequence of the changes through time. The United States stands almost alone which the financial community has been as an important free gold market. Other passing. A phase of this change in the invest- countries are seeking and have obtained large credits in the United States, as is evidenced ment outlook has been commented upon by by the fact that our exports exceeded imports the Secretary of the Treasury as follows: during the year by about four billions of dollars "The depression in high-grade investment and we have paid our adverse balances in gold. securities in this country at the present time It should be recognized that credits extended is to a very important extent the result of to Europe create a demand for commodities heavy selling of such securities in our markets that competes with the domestic demand and from foreign sources * * *. By absorbing this competition is one of the potent causes of these high-grade investment securities, the high prices. * * * The expansion of credit American people are furnishing capital to set in motion by the war must be checked. Europe at a time of Europe's need and are Credit must be brought under effective control giving this help in just the way that Europe and its flow be once more regulated and helped America in the period of America's governed with careful regard to the economic growth and of her own monetary troubles. welfare of the country and the needs of its In the days of the infancy of the Republic, in producing industries. Deflation, however, the days of our Civil War, and of the period merely for the sake of deflation and a speedy of reconstruction after the Civil War, of the return to "normal"—deflation merely for the monetary panics which we suffered at frequent sake of restoring security values and commodity Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

224 FEDEKAL RESERVE BULLETIN. MARCH, 1920. prices to their prewar levels without regard to which the member banks and discount houses other consequences, would be an insensate are buying them. Should it become urgently proceeding in the existing posture of national necessary to curtail rediscounts at the Federal and world affairs. Reserve Banks, rates can be raised, and should All these factors were brought to the atten- it be found that the preferred rate for bankers' tion of the meeting of the Fed- acceptances is being abused such discriminaeral Advisory Council at its tion in their favor should be discontinued/7 stated session on February 17. With reference to rates of interest in general, The Council, after considering the general credit the Council found that the action already taken outlook, made recommendations as to some by the clearing-house banks in limiting the rate particular phases of it, to which brief reference of interest to be paid on bank balances to 2\ per may be made. The view of the Council with cent enables the Federal Reserve Banks to inrespect to the matter of rates on open-market crease their discount rates without reference to acceptances is thus stated: "The policy to be existing clearing-house rules regulating the paypursued by Federal Reserve Banks should be ment of interest. No further steps are necesto leave the control of the open market for sary or advisable looking to the regulation such acceptances in the hands of member banks of the rates of interest to be paid on deposits. and discount houses, so long as the former use As to whether the present 6 per cent rate for the special rediscount rate legitimately and do the rediscount of ninety-day paper is suffinot abuse it. The Federal Reserve Banks ciently high, the Council holds that experience should not therefore normally buy acceptances has thus far been insufficient for conclusive in the open market below the current rates at opinion. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MARCH, 1920. FEDERAL RESERVE BULLETIN. 225 BUSINESS, INDUSTRY, AND FINANCE DURING FEBRUARY, 192CL While Federal Reserve agents in their reports ditions are making themselves felt' in a pracas to business conditions and the outlook for tical way, sundry prices weakening as a result trade forecast the continuance of an active de- of the decline in sterling. In district No. 4 mand for products, the situation in some dis- (Cleveland) the Federal Reserve agent, while tricts is such as to raise questions and to lead calling attention to the restriction of output to predictions of possible reduction in business as a general evil, and while fearing the conactivity and in prosperity. There is in many tinuation of high prices as the result of undersections of the country indication of some production, states that there is a beginning on alteration in outlook and a disposition on the the part of employees to recognize that the part of the consumer to use more care and volume of production is a vital question. The judgment in his purchases. No increase in opinion is expressed that extravagant purchaslabor unrest is observable, but in some districts ing will continue for some time, although the a continuation of underproduction or limita- reports of dealers indicate an opposite view. tion of production is encountered. No ground for actual pessimism is to be noted. In district No. 1 (Boston) the Federal In district No. 5 (Richmond) "the new year Eeserve agent reports that "it seems clear not has opened prosperously, with no indications only that commodities are finding their way to of any general business curtailment." There the counters of the retail merchant with in- is, however, a distrust of future prices and creasing facility, but that the shelves of the retailers are showing a conservative tendency. latter are, in general, being stocked to capacity, In district No. 6 (Atlanta) observations similar and merchants are buying more and more to those reported from the Cleveland district cautiously from month to month, willing to are presented. The need of increased productake chances which they would not risk a few tion is recognized, and it is stated that "the months ago on deliveries; and though they may betterment of prevailing conditions rests largely not yet have actually observed any appreci- with the general public and especially with able falling off in the purchasing activities of labor." The outlook for agricultural developthe public, they are becoming increasingly ment is good. In district No. 7 (Chicago) "it conscious that the inevitable time of forced is not surprising that the tone of replies to retrenchment is approaching nearer and nearer." inquiries concerning business conditions in the In district No. 2 (New York) "shares on the Middle West should reflect more or less apstock market have persistently declined and prehension of a period of business depression." a further contraction in the volume of trading This is said to be particularly noticeable in the as compared with recent months has taken advices received from producing centers. In place. There has been evidence also of waning district No. 8 (St. Louis) active business in speculation in commodities. A further and practically every line is reported, although sensational fall in foreign exchanges brought "during the past few weeks several disturbing almost all the principal quotations to new low factors have tended to lessen its volume from levels, from which they have somewhat recov- the high level of January." Possible price * ered." From district No. 3 (Philadelphia) it is reductions are foreseen and buyers are limiting reported that there is a brisk demand for manu- their purchases, yet there is "a feeling of factures of all kinds but that the danger of fur- optimism" among most business men. The ther price advances is well recognized. "There buying power of the public shows "little dimican not be any long continuation of price ad- nution," In district No. 9 (Minneapolis) unvances combined with increased purchasing, un- favorable transportation conditions have less production can at the same time be made tended to limit the activity of business, but the larger,'' says the report. Foreign trade con- agricultural outlook is good and sales of farm Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

226 FEDERAL RESERVE BULLETIN. 11)20. implements are active. Collections are satis- ter plowing has been done and preparation for factory. In district No. 10 (Kansas City) "the the staple crops is three or four weeks behind. volume of mercantile trade in the month of The south Texas rice crop, which has just been January was about 40 per cent greater in completed, is the most profitable ever grown. amount of money than that of January, 1919, Truck products are moving to market in large and about the same in quantity of merchan- volume and at good prices. In district No. 10 dise.'7 Some lines of business have declined (Kansas City) conditions have been ideal for in activity, but building operations have work out-of-doors. The ground has been in enormously increased and there is an effort to excellent condition for plowing and the weather pay off war indebtedness. In district No. 11 was favorable for winter grain crops. The corn (Dallas) January business conditions " reflect acreage will be largely in excess of last year. a moderate net gain as contrasted with the In district No. 9 (Minneapolis) the season is situation a year ago. Agricultural prospects still too early to forecast conditions. On the are favorable, and the volume of mercantile Pacific coast the germination of grains has been trade was slightly better than that of January, slow, although in Oregon and Washington au- 1919. In district No. 12 (San Francisco) plant- tumn wheat is wintering well. While the ining conditions are not as good as they should formation is not yet sufficiently complete or be. There is much activity in business, unem- the season sufficiently far advanced to furnish ployment is nominal, strikes are at a minimum, conclusive facts, the prospects are evidently and the prospects are good in spite of somewhat regarded as entirely favorable. Practically unfavorable agricultural conditions. throughout the country the problem of agri- Throughout practically all the reports runs cultural labor, both as to amount and cost, a recognition of the existence of an overstrained is regarded as one of unprecedented difficulty. condition of credit and of some continued ten- The high wages offered in the cities have atdency toward speculative operations, while high tracted many farm workers from the land, and living costs and the upward movement of prices as a result decreased production in various have apparently not been checked, notwith- sections can scarcely be avoided. standing the decrease in prices of some classes Farm animals in most parts of the country of goods and a tendency toward restricted trade are reported as wintering in exceptionally good in specified lines. Interest rates are high and condition. In Texas there was an increase of rising in most places, while banks are exercising 836,000 head of live stock from 1918 to 1919. a greater degree of discrimination and judg- The sheep industry in west Texas has the best ment in complying with the demands of their prospects ever known. In district No. 10 customers. February has witnessed a begin- (Kansas City) live stock has been reported in ning of active preparations for the coming agri- thriving condition with less disease among anicultural season, particularly in the South and mals than for some time. There is a problem Southwest and on the Pacific coast. In district in the northwest section of the district in re- No. 6 (Atlanta) preparation for the new crops stocking the ranges, but prospects are good for has been somewhat retarded by weather condi- a large crop during the current year. On farms tions and cotton acreage can not as yet be fore- there has been a decrease in the number of anicast with accuracy, although it will probably be mals available, amounting to about 7.1 percent reduced as compared with last year. Small since January, 1919. Some falling off in sheep grain has been somewhat damaged by wet has occurred in Colorado and Wyoming, but in weather along the Atlantic coast. The fruit the eastern part of the district sheep have and vegetable crop gathered during the past increased from 2 to 10 per cent, the increase few months has been very satisfactory, although being especially noticeable in Kansas. Deprices for some classes of fruit have been disapclines are reported in the holdings of hogs. pointing. In district No. 11 (Dallas) little win- On the Pacific coast, in spite of hay shortage Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

227 MARCH, 1920. FEDERAL RESERVE BULLETIN. and high prices for feed, cattle are wintering City steers were about $1.50 lower than a year well, and the quantity of live stock on farms ago, while feeder cattle were $1.50 to $2.50 in the district is approximately the same as on lower. Lambs and calves maintained fairly January 1, 1919. Receipts of cattle and calves high prices. Both in district No. 10 (Kansas at 15 primary markets during January were re- City) and district No. 7 (Chicago) it is noted ported as 1,400,031 head, corresponding to an in- that meat packing operations have been matedex number of 139, as compared with 1,650,315 rially slowed down on account of the export head during December and 1,656,046 head situation. during January, 1919, the respective index Arrivals of wheat have been smaller both in numbers being 164 and 164. Receipts of sheep district No. 10 (Kansas City) and district No. during January were 1,035,591 head, as com- 9 (Minneapolis), as well as in district No. 7 pared with 1,079,377 head a year earlier and (Chicago). This has been partly due to diffi- 1,589,237 head during December, 1919, the culties of transportation. Inability to ship respective index numbers being 76, 79, and 116. accumulated stocks from the elevators in the Receipts of hogs show a change from 3,912,449 Northwest has prevented grain from moving. head, corresponding to an index number of 178 In district No. 10 (Kansas City), although such during January, 1920, to 4,603,335 head, corre- difficulties have been smaller, the arrivals of sponding to an index number of 209, during wheat at principal markets were about 15 January, 1919, as compared with 3,785,870 per cent less than in December, but about head, corresponding to an index number of 172, three times as great as in January, 1919. during December. From Kansas City it is Much grain is now being held on the farms for reported that January receipts of cattle, hogs, higher prices. Activity at the principal flour and sheep at the six markets in that dis- milling centers has declined in district No. 10 trict were 523,742 head, 1,053,719 head, and (Kansas City) on account of the car shortage, 539,385 head, respectively. Stated in another while the same is true in district No. 9 (Minneway, arrivals at the six markets in district apolis) and elsewhere. Wheat flour produc- No. 10 (Kansas City) in January were 37,006 tion in January, 1920, was, however, 13,005,000 cars, as compared with 37,694 cars in Decem- barrels, as against 10,593,000 barrels a year ber and 44,134 cars in January, 1919. There earlier. This continues the upward movement was a decline of 12.7 per cent in cattle in the output of flour already noted in the receipts as compared with the December record February issue of the BULLETIN. and of 14.9 per cent as compared with the re- The demand for iron and steel continues to ceipts in January of last year, while 12.7 per be vigorous and many mills are sold up far * cent more hogs arrived in January than in ahead. In district No. 4 (Cleveland) it is re- December, but the January total fell 30 per ported that pig iron buying during the past cent short of the receipts in January, 1919. four or five weeks has been in "tremendous Fewer sheep came to the markets in January volume/7 and it is estimated by trade authorithan in December, but the January total was ties that total sales during that period exceeded 14.4 per cent larger than a year ago. In dis- 1,000,000 tons. Consumers have bought ahead trict No. 7 (Chicago) it has been found that up to January 1, 1921. The advance in pig receipts of live stock at the principal markets iron prices has ranged from $3 to $6 a ton. The during January show a decrease of 19 per cent Lake Superior iron ore market for the season as compared with the corresponding month of 1920 has opened at an advance of $1 a ton. last year. Prices for cattle, beef, and mutton Predictions are now being made of a season's declined compared with a year ago, while sheep movement of 60,000,000 tons. The unfilled and young lamb increased in price. There was orders of the United States Steel Corporation a falling off of 15 per cent in hog receipts and a for January were 9,285,441, corresponding to decrease in the price of live hogs. In Kansas an index number of 176, while for January, Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

228 FEDERAL RESERVE BULLETIN. MABCH, 1920. 1919, they were 6,684,268, corresponding to an it is reported that coal is going forward from index number of 127. Pig iron production was the upper lake ports as fast as the railroads can 3,015,181 tons for January, as against 3,302,260 handle it, and stocks will be low all around at tons for January, 1919, the corresponding index the opening of the shipping season. numbers being 130 and 143, respectively. In Petroleum production in the Kansas and district No. 3 (Philadelphia) demand for iron Oklahoma fields for January was somewhat and steel has been exceptionally heavy and over 10,000,000 barrels, or about the same as manufacturers were recently operating to ca- for December. This was a gain of 96 per cent pacity. Weather difficulties have lately re- over January, 1919. In Wyoming and Colotarded their production and fuel shortage has rado current monthly figures are not obtainbeen troublesome. Eastern Pennsylvania No. able, but reports indicate a good January out- 2x pig iron a year ago was $36.15 a ton, but is put. The Wyoming production for 1919 avernow $45.35 a ton. All derived products of aged 1,147,750 barrels per month. There has steel, including sheets, tin plate, bars, pipe, been a decrease in stored stocks of petroleum, tubes, etc., have advanced very greatly in while a slight increase in the monthly producprice. The demand for chain has been espe- tion has taken place. A tendency to substitute cially heavy, but prices have not advanced as oil for coal throughout the country is proceedrapidly as elsewhere. Sheet steel for use in ing and increasingly severe drafts are being automobile manufacturing has been in strong made upon the accumulated stocks of the demand and the prices show an increase of product. $21 per ton as compared with a year ago. In General manufacturing is very active all over district No. 6 (Atlanta) th re is great activity the country, but in textiles there has been some in the iron and steel industry and pig iron is decline as compared with December. In disselling from $40 to $43 per ton, with no ac- trict No. 3 (Philadelphia) the demand for raw cumulation of stocks. The production for cotton has fallen off because mills are well sup- January, 1920, was slightly larger than for plied. A conservative policy as to purchases December, 1919. of raw material is being pursued. Cotton-yarn Coal production is reported by district No. 3 manufacturers are well sold ahead and are (Philadelphia) to have been 86,200,000 tons of bringing their mill production nearer to capacanthracite in 1919, as compared with 98,826,084 ity, although there has been a slight falling off tons in 1918. In January shipments for the in the past 30 days. Prices are higher to-day nine anthracite-carrying roads were 5,713,319 than they were a year ago by about 100 per tons, as compared with 5,638,383 tons in cent in some cases. In district No. 1 (Boston) January, 1919. The latter part of January there is a disinclination on the part of mills to and the first few weeks in February have been lay in raw material. The domestic yarn market characterized by weather which has restricted is quiet and there is an " abundant tendency production and the movement of cars. Ship- to caution." Cotton fabrics, including the fine pers of coal have been embarrassed by having grades, have lately been in less demand. their money tied up in coal that has been con- There is a conviction that " prices have at last fiscated. The bituminous output for January, attained their maximum." Cotton-goods manu- 1920, is reported as 49,419,000 tons, corre- facturers are running at capacity and export sponding to an index number of 133, as com- demand is fairly strong, while opinion as to pared with 41,485,000 tons, or an index num- prices is divided, some manufacturers believing ber of 112, in January, 1919. The index num- that the peak has been reached. ber for coke for January was 76, shipments Raw wool supplies of the finer grades are being 1,982,000 tons, while for January, 1919, insufficient and little is being offered in the the index number was 92, with shipments market. Woolen-yarn manufacturers report 2,401,967 tons. In district No. 4 (Cleveland) an excellent demand and are operating their Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MARCH, 1920. FEDERAL RESERVE BULLETIN. 229 plants to capacity when they can get the labor. complete statistics district No. 10 (Kansas Finished goods manufacturers in district No. 3 City) reports a relative increase of 467 per (Philadelphia) find their products so much in cent during the past year, while district No. demand that they are obliged to allot the out- 11 (Dallas) reports 839 per cent. Great put among their customers. Good business is building expansion in 1920 in the southwestexpected. In district No. 1 (Boston) woolen ern part of the country is accordingly anticimills are running to their full capacity and pated. In the Middle West permits issued claim to have no surplus of manufactured have been far in excess of the corresponding goods. Deliveries are being made promptly month last year. In the East and Northeast, and there is some overproduction of overcoat- where the movement toward increased buildings. The dress goods market is quiet. ing started perhaps earlier than it did in other Wholesale trade conditions are reported parts of the country, the growth is not always prosperous almost throughout the country. so noticeable, relatively speaking, but the Wholesale dry-goods houses in St. Louis say activity is still considerably on the increase. that their sales in January, 1920, were in Difficulty in obtaining deliveries of building many instances larger by 100 per cent than materials have been severe. Scarcity of cars in January, 1919. Their business was also has prevented the movement of lumber and larger than in December. The retail stocks heavy building materials and the effect of are reported to be depleted. In Chicago, mer- this situation will be to restrict the early cantile stocks are at a low ebb and wholesalers spring progress in construction. state that the decline in foreign trade has ap- Labor conditions are quite generally reported parently not affected them much. Some job- throughout the country as being in fairly stable bers report the largest bookings in the history position. The most unfavorable aspect of the of their business. They do not anticipate labor outlook is the tendency reported from any decline in orders. Similar conditions ob- various districts toward restriction of output. tain in many other parts of the country. In Even in those cases, however, where this tenshoe manufacturing producers have received dency is noted, the opinion is occasionally exheavy orders, but there is a dullness in the pressed that the effect of the restrictive policy leather market, while the reduction of exports in injuring those who practice it is beginning to is believed likely to forecast a cut in prices to be better understood. Scarcity of labor is consumers. The demand for good grades of noted in many districts, particularly in the shoes, regardless of price, seems to continue. agricultural regions, and as a result reduction In the leather field sole leather continues dull in the acreage of farms and the output in some and weak, while prices are not much changed. manufacturing lines is foreseen. An especially Declining quotations for hides have brought acute situation in farm labor is reported from no corresponding movement in leather. Shoe the Southwest. In the eastern manufacturing price lists for the new season are higher than districts notable increases in the proportion of ever. men employed and in the advance of factories In spite of exceedingly high costs of building toward capacity production have occurred. In material, the intense shortage of accommoda- some specialized industries, however, either tions is causing a great growth. in building strikes or shortage of raw material have led to operations in many parts of the country. On restriction of output, although such interferthe Pacific coast an increase of nearly 30 per ences have not been extensive. Many plants cent is noted as compared with December, which during the war were not able to bring while as compared with January of last year more than a substantial percentage of their permits issued are nearly four times as great. machinery into active operation have succeeded In the Southwest an even larger ratio of in- in getting much closer to total activity. It is crease has been noted. On the basis of in- noted, however, that even those plants which Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

230 FEDERAL RESERVE BULLETIN. MARCH, 3 920. are running at full capacity are in some in- both in the financial centers and throughout stances unable to turn out as much as in prewar the country generally, has occurred, a part of days. From Cleveland it is reported that one it being due to the withdrawal of Government large employer of labor finds that while the funds. Very great difficulty in placing both numerical strength of his staff has increased 11 commercial paper in satisfactory quantity per cent, the augmented force is producing 14 and conservative investment securities is per cent less than the old force. On the Pacific reported by dealers. Some evidences of the coast labor has been fully enployed and unem- transference of demand which would naturally ployment during the winter months has been be exhibited through investment institutions purely nominal. A fairly extensive telephone to commercial banks is also noted, and member strike recently occurred, but apparently has banks have quite generally increased the not enlisted the support of a very large propor- scope of their demands upon Federal Reserve tion of those subject to it. Banks. In the West and Middle West "money During the month of February there was a is in strong demand both in the country and continuation of the heavy demand for funds in the city," while the movement of credit which had been characteristic throughout the continues to indicate great activity. In discountry for more than 90 days. Advances in trict No. 4 (Cleveland) there has been little rates of interest, both for call and time money activity in the acceptance market, dealers are and for commercial paper, carried the general purchasing as few bills as possible, and credit cost of loan funds up to a figure probably in accommodations are limited, although there advance of any that had been recognized in is abundant money for "legitimate uses." the United States for some years past. Coin- On the Pacific coast, bank clearings have fallen cident with these advances in the cost of loan slightly as compared with December, but aFe funds was a decline in the quotation of the best still far ahead of January, 1919. Interest and investment securities, while on the whole a discount rates are firmer and the demand for shrinkage or contraction in the volume of funds is- strong. In the South and Southwest trading in all classes of securities throughout borrowing is active, although a temporary the country was observed. In the opinion of check has been caused by advances in discount some districts there were also indications of a rates. This temporary setback is not expected reduction in the volume of speculation in to continue long, spring requirements necescommodities. The effects of the increase in sitating a renewal of sharp demand for acrediscount rates at Federal Reserve Banks commodation. There is evidence that finanmade themselves evident in a more conserva- cial and banking authorities all over the tive attitude on the part of banks in general country are looking more seriously to. the with respect to industrial expansion and in general situation in credit and are beginning the cutting of commitments on speculative to urge the adoption of conservative policies. account. From district No. 2 (New York) it Foreign exchange has suffered a collapse is reported that during the past 30 days there which carried rates down to the lowest level has been "a gradual reduction in bank loans, thus far recorded early in the month, after more than two-thirds of which has been in the which recovery took place. Predicted reducdecline of loans secured by stocks and bonds. tion of exports has not been borne out by the Since last October, when bank loans at this Government figures for January, which show district were at their highest point, they have an advance over December amounting to declined 10 per cent." This contraction of about $50,000,000. A material cut in the bank credit was not, however, general throughamount of credit available for the support of out the country, but the reduction in New exportation is taking place. York was partially offset by an increase in The general prospects at the close of Febother districts. A decline in bank deposits, ruary are favorable to an active, prosperous Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MARCH, 1920. FEDERAL RESERVE BULLETIN. 231 spring season in the principal manufacturing, at 6^ and 6|- per cent, with a small proportion wholesaling, and retailing lines. Wages con- of sales reported at 7 per cent. New York tinue very high and labor in strong demand. banks are practically out of the market, but a Agricultural prospects are good and the curtail- scattered distribution outside has been sufficient ment in exports due to foreign exchange con- to absorb the smaller volume of paper which ditions, while undoubtedly beginning to make is coming out. The bill market at this center themselves felt, is believed by many to be continues inactive, and sales out of town are beneficial to the consumer rather than inju- only in limited amounts. Dealers early in the rious. A tendency to resist the advance in period advanced their rates to 5i-5f for prime prices and some increase in care in purchasing member bills, while the purchase rates of the are regarded as favorable symptoms. The Federal Reserve Bank ruled from 5{ to 5J per credit and money situation continues strained cent. and there is a scarcity of funds both for long The stock market,—Heavy liquidation has and short term use. been in progress on the stock exchanges, and many large declines have been recorded. SPECIAL REPORTS, The decline in stock prices which had proceeded MONEY AND EXCHANGE.1 in an orderly manner since the beginning of The conditions which prevailed in the money the year in a market characterized generally market during the preceding month were con- by professional operations was rapidly accelertinued into the period just past with increasing ated during the past 30 days, and stocks at acuteness. High rates for call and time times were pressed upon the market in a money, and the inability of bill dealers and manner apparently regardless of price. The commercial paper distributing houses to attract increased tension in the money situation and any wide demand despite advanced offering conditions bordering upon demoralization in rates, are in sharp contrast with the state of the foreign exchanges were in part responsible things normally existent at this season. Gov- for the decline, and in addition to domestic ernment withdrawals from the banks in un- selling there were evidences of a considerable usually large amounts were accompanied by volume of liquidation for foreign account, which fluctuations in call money quotations ranging appeared particularly among the better class as high as 25 per cent, with renewals for a con- of rail stocks. Average of daily sales for a siderable part of the period quoted between considerable time well exceeded the million 10 and 17 per cent. The redemption of a mark. Recently the market has displayed a maturing issue of certificates of indebtedness steadier tone. Some of the more speculative early in February afforded no apparent relief issues have shown losses from the high point of to the money market. Time loans continued last November running to 40 per cent or more. practically unobtainable, though borrowers A representative list of 20 industrials declined bid 9J and 10 per cent for money on industrial from 119 on November 3 to 79 on February 5, collateral. Latterly, the situation has become an average of 34 per cent. Rails have held to easier, largely as a result of the liquidation about the record low levels established in which has occurred in the stock market, and December, although there was a spasmodic call loans were made and renewed at 6 per recovery in the last week. Railroad issues cent; but time money continues scarce, with average about 10 points (or 12^ per cent) rates nominally at 8^ and 9 per cent. below a year ago, while industrials are still Commercial paper rates have continued on about the same degree above February of 1919. *^e upward trend, and prime names are offered Falling prices were attended by decreasing sales, the total of January transactions on » From report of district No. 2 (New York). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

232 FEDERAL RESERVE BULLETIN. MARCH, 1920. the New York Stock Exchange reaching February 13 to 3.43, a total gain of 25 points. 19,600,000 shares. This was a decline of 4,600 There was likewise a reversal in the movement million shares as compared with the heavy of Japanese exchanges which have in general trading of December, but 8 million shares above been favorable to that country, but have this January of 1919. month fallen below the point of normal parity. The bond market.—The general level of bond There was concurrently a further fall in Canprices has further declined since the report adian exchange; our dollar rose to a premium in January, and the average of 40 listed issues of as high as 17J per cent. reached the lowest level on record on February Foreign trade,—The continued and unprece- 13, being 7.82 points below the average at dented fall in exchange has brought renewed the beginning of 1919. Sales from January 1 apprehension of a sharp contraction in our to date aggregate approximately $578,000,000, large volume of foreign trade, with a consewhich is about 28 per cent greater than during quent disturbance of the general business of the corresponding period of 1919, but sales the country. It should be remembered, howhave not been as heavy as during December. ever, that our foreign trade, even at the present Liberty bonds were under heavy pressure large volume, has nothing like the importance during the last week in January, and the first which foreign trade possesses, for example, in a week in February, when the money market country like England. In the latter, in normal was experiencing the greatest strain of the times foreign business probably exceeds a year and foreign exchanges had developed quarter of the entire trade of the nation. In extreme weakness. After reaching their low- this country it can hardly exceed 8 or 10 per est price level during the first week in Feb- cent; most estimates are, indeed, considerably ruary, a decline of about 2| points since lower than this. Nor has the actual expansion the 1st of January, Libertys have held some- during the war period been anything like as large what firmer, in sympathy with easier money as is popularly supposed. In physical volume and firmer foreign exchanges, while other bonds it probably does not much exceed 40 per cent have continued to decline. for export and very little for import; allow- At the close of January, State and municipal ing for five years of normal trade growth, the bonds were selling at practically the lowest present proportions measured in tons, bales, prices reached any time during the war period. and barrels are less than one-quarter greater Sales of such securities during January than before the war. In other words, if it was amounted to $68,000,000, as against $81,- 7 or 8 per cent then, it is not much over 10 per 000,000 in December. cent now. Moreover, our exports have been Increased activity in the selling of foreign largely of indispensables, commodities in which securities is reported both with respect to this country has relatively small competition. American securities formerly held abroad and Our principal export staple is still cotton, and issues of foreign Governments, municipalities, even here, although measured in dollars the and corporations. Both the French and Bel- amount is very large, the actual volume of gian Governments are offering in this market, shipments in the last 12 months has been below through banking houses acting as agents, their prewar years. England's cotton industry seems new internal 5 per cent premium loans. These remarkably prosperous, but Germany's textile bonds present unusual features in governmental mills, formerly our second largest buyers, are securities. They are redeemable in semiannual not yet functioning to any considerable extent. drawings at 150 per cent, i. e., 750 francs for There has been an enormous expansion in our each 500-franc bond. At the present rate, of shipments of meat and other food products; exchange these securities offer an extremely and this has been larger in the last year than in high rate of interest to purchasers in this coun- any year of the war. This was obviously abtry, still further to be increased, in variable normal and represented a considerable stocking amounts, by the periodical redemption at 50 up of depleted supplies. On February 16 the per cent premium over the nominal amount of meat packers' institute issued a bulletin stating the bond. that meat exports had practically ceased; that Foreign exchange,—The first week of the England has now large supplies on hand. The period showed the most complete demoraliza- same was true of other neutral countries, and tion of the exchange market known in this sales to Germany under existing conditions generation. Sterling fell to a record figure of were not feasible. On the other hand, the 3.18, French francs went to 15.15, and Italian expansion in our foreign shipments of iron and lire to 19.72. There was later a considerable steel manufactures has been almost as great as recovery, especially in sterling, which rose on that of the meat trade; and on latest reports Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MARCH, 1920. FEDERAL RESERVE BULLETIN. 233 this shows no signs of diminution; quite the THE EFFECTS OF CAR SHORTAGE. reverse. Copper shipments remain remarkably low, and must inevitably expand with the Acute car shortages, resulting in curtailment revival of industry in Europe. Here Germany of production and hampering the delivery of was formerly our largest customer and it is now finished goods, are very generally commented buying very little. Especially notable is the upon in the reports of the Federal Reserve relative decline in our imports from Europe agents. and the great expansion of those from In district No. 4 (Cleveland) the situation is South America and Asia, with relatively little serious in the iron and steel industry. It is expansion in our exports to these countries. said that ain a number of cases producers of In other words, we have been selling heavily to iron and steel have been forced to scale down Europe and buying from Europe relatively their operations either because of a lack of little. The reverse has been true of our trade essential materials, such as coal, or because to South America and to the Orient. they had stocked about all the tonnage of The gold premium and depreciated curren- finished rolled steel which their yards could cies.—In the main the fall in European ex- accommodate. The Carnegie Steel Co. at one changes, which has, of course, been general and time had in its yards from 150,000 to 160,000 not confined to relations with the United States, tons of finished steel which it could not ship represents largely an endeavor to adjust our to its customers because the cars were not currency and that of other nations to the in- available. Independent companies in the Pittsflated and correspondingly depreciated cur- burgh and Youngstown districts, particularly, rencies of Europe. This is revealed by the rise were affected to a corresponding degree. Some in the gold premium in London step by step customers who are running close on steel supwith the fall in sterling. There normally exists plies in turn were affected adversely in their between all countries which have extended activities by the failure of material to arrive trade with each other a certain balance be- promptly. At the same time it sent them into tween the price level, the state of currency, the market in search of early tonnage and this and the rate of exchange. Thus, for example, has tended further to bid up prices." in Great Britain, prices since the war began "The shortage of coal is causing widespread have risen at least one-third more than in the alarm throughout the district and it is believed United States, which roughly corresponds to that unless relief comes soon there may be the fall in exchange and the amount of the enforced periods of idleness in many shops and prevailing gold premium. In terms of gold, factories." then, the general price balance between the Reports indicate that the car supply at the two countries remains in about the same mines has seldom been above 50 or 60 per cent correspondence as before. Moreover, the since the strike, and that it has averaged as low actual quantity of American products seriously as 30 per cent at some periods. In many affected by present exchange rates is relatively places miners have been able to work but two small. So far as the great proportion of our or three days during the week and remain idle exports is concerned, they must be taken at until another lot of cars arrives. the prices obtainable, forcing a correspond- "The production of coke has fallen off for ing price in the depreciated currencies of the same reason. At the close of the first Europe. week in February, the Connellsville region re- There is a widely prevalent idea that the ports indicate a lower average output of coke post-war needs of Europe have enormously in- than for some months past, though the first creased our exports to that continent, and that few days of the second week indicate that some it is this which has created the present dis- improvement is probable." turbing situation. This has little justification The brick industry has also, "despite a veritin fact. On the whole, with Germany, Austria, able flood of orders for fire clay and silica and Russia out of the market, the proportion brick," been reported to be "running at about of our exports to Europe has not sensibly 50 per cent of capacity, whereas the volume of changed. It was 60 per cent in 1913. It was business would warrant full capacity except 63 per cent last year. That of England, for a shortage of cars. One building-brick France, and Italy has somewhat augmented, concern reports they are 250 cars behind orbut even here the gain is relatively small. dinary allotment." Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

234 FEDERAL RESERVE BULLETIN. MARCH, 1920. Car movements in the Cleveland district an equal quantity of other grains and corn. during the month of January were as follows: Country elevators contain 18,000,000 bushels of wheat, and Minneapolis and Duluth terminals something in excess of 11,000,000 bushels. 1919 1920 The car supply at Minneapolis terminals averaged 527 cars a day for the first 10 days of Cars. Tons. Cars. Tons. January and 240 cars a day the first 10 days of February. The falling off for the 30-day Received 27,647 959,913 34,985 1,191,277 period terminating at the middle of the month Forwarded 17,747 499,778 18,408 472,159 was approximately 3,000 cars. Four hundred Total 45,394 1,459,691 53,393 1,663,43 6 country elevators in the States of Minnesota, North Dakota, and South Dakota are closed to In district No. 5 (Richmond) "coal producers the famers, because of the inability to move are running below capacity because of car accumulated stocks. No substantial relief is shortage/' and "demands for empty cars ex- in sight. Recent tabulations of freight moveceed the supply in every line of business re- ments for Minneapolis show a falling off of ported." practically 3,000 cars as compared with the In district No. 6 (Atlanta) the car shortage same month a year ago." is especially serious for the coal operators. District No. 10 (Kansas City) characterizes "Reports from the Birmingham district and in the car shortage as a positive menace, and says Tennessee are to the effect that the coal pro- that "while there are many complaints that the duction is greatly reduced by the car shortage, car shortage is retarding the free movement of from which there is no indication of immediate grain from the States of this district, it must relief. There is a heavy demand for coal of also be understood that the effect of the shortall grades, however. With the continued warm age is also keenly felt in the moving of products weather, the supply of domestic coal has been of the mines in this part of the country, and in sufficient to meet the demands without any the bringing in of supplies of merchandise, serious suffering on the part of the public. The lumber, and materials for building and constocks of all grades on hand are at a minimum, struction." and the demand for steam, coking, and gas "A report of the Nebraska State Railroad coal is reported extraordinary.'7 Commission calls attention to a preponderance Testimony from other districts of the Middle of foreign cars operating on the railroads in West emphasizes the evidence given in the that State. It was shown by a check in Ne- Cleveland report. District No. 7 (Chicago) braska that of 29,157 box cars operated by one says that insufficient production is the feature railroad, only 2,406 cars owned by that railof the steel market. "The steel companies are road were in use in that State, the remaining sold up far in advance, and production has been 26,751 being foreign cars. Railroads are reseriously retarded by fuel and transportation luctant to spend large sums of money repairing shortage." Coke still remains very scarce cars belonging to other lines, and since the return owing to the inadequate car supply, and the of company cars to owning roads is very slow, grain movement is slower than usual at this no improvement in the situation can be time of the year. In the case of automobile expected." factories "plant capacity can not be reached "As the present available supply of cars is owing to the shortage of material, fuel, and wholly inadequate to move the wheat and corn labor, while the inadequate supply of freight offered from the farms and interior elevators, cars is also holding up shipments." the approach of March 1, with prospective District No. 8 (at. Louis) also refers to inability of farmers to realize on their grain by frequent complaints of slow deliveries, due in that date, is a matter of grave apprehension to part to inadequate transportation facilities, the farmers, the banks, and other institutions, while district No. 9 (Minneapolis) regards the according to the view of the Nebraska comunfavorable transportation situation as the mission." outstanding feature of present conditions. "Activity at the principal milling centers in "Approximately 60,000 cars are needed to district No. 10 has declined slightly in the past move what is left of last season's crop in the three weeks, largely on account of the shortage grain-growing portion of the ninth district, of of cars and the element of uncertainty in the which one-half are needed to move wheat. export flour trade." Stocks still in the hands of the farmers repre- "Transportation disability was likewise resent about 11,000,000 bushels of wheat, and sponsible for an average of 7.4 per cent weekly Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MARCH, 1920. FEDERAL RESERVE BULLETIN. 235 loss of activity in coal mining operations in of loans is not reflected in the reports of the Kansas, 6 per cent in Oklahoma, 4 per cent in Federal Reserve Bank. "The total earning Missouri, and 3.7 per cent in Colorado." assets of the Federal Reserve Bank of New The large stocks of zinc ores purchased dur- York on February 20 were $1,100,000,000, not ing the last nine months also present a difficult much below the maximum for this bank problem to transport agencies. "This accum- reached early in January when the Treasury ulation is estimated at from 60,000 to 80,000 required special accommodation. The withtons, and it is only within the last month that drawal from the banks of Government deposits, the shipments have approximately equaled the until they are now at a minimum, accounts to a purchases and production, and this was accom- considerable degree for the increase in the loans plished only by the herculean efforts of every of this bank." organization connected with the industry. Despite some expansion in the loans of the # Whether it will be possible to move this ac- banks in other districts, which make reports to cumulation of ores during the next three the Federal Reserve Board, there is consideramonths and thus relieve the shipping situation ble testimony to the effect that credit accommoremains to be seen, but the history of the past dation is being extended with greater discrimnine months is not very encouraging in this ination and that efforts to restrict speculative respect." loans have not been without result. District No. 11 (Dallas) refers to the car In district No. 4 (Cleveland), for example, shortage as "the principal disturbing element it is affirmed that "the wisdom of the action in the present situation." There are no im- of the Federal Reserve Bank in raising the mediate prospects of relief and meantime a discount rate is reflected in a more careful number of lumber mills are not operating be- scrutiny by bankers of applications for loans cause of lack of stocks (bad weather being in to determine the purposes for which they are this case a contributory factor). to be used. Bankers generally report that In district No. 12 (San Francisco) much of plenty of money is available for legitimate the 1919 grain crop of Oregon is still held in uses but none to be had for speculative purinterior warehouses. "In Washington ap- poses. Bankers feel that with the expansion proximately 1,500,000 bushels of wheat were of present business and the advent of new moved during January, but of this amount only industries which are sure to come, they can about 10 per cent was carried outside of the employ their money more profitably than in State. About 90 per cent of the wheat re- speculation." ceived in Seattle in 1919 is still held in that "The supply and variety of bills in the open city as manufactured flour, as flour in process of market is good, but in spite of this the market manufacture, or as wheat held in storage by has remained dull due to the lack of available millers." funds for any form of investment. An en- "Car shortage continues to restrict opera- couraging feature since the first of the year tions in the lumber industry. In the Pacific has been the number of new purchasers, who Northwest lumber mills are receiving only 30 have found the higher return on acceptance inper cent of the cars required, and lumber manu- vestments an incentive to enter the market, facturers report production as equaling only but still the demand remains small due to the 87 per cent of plant capacity and orders ac- liquidation of credits, and is insufficient to cepted as only 50 per cent of business offered." bring about the desired balance in the market." "Previously low money rates were indicative CONTRACTION OF BANK CREDIT. of an increased demand, but in spite of the comparatively low money rates of the past According to the report from district No. 2 week there has been no change in the general (New York), "the effect of the increase in the condition of the market. Dealers are purchas- Federal Reserve discount rates, announced on ing as few bills as possible, and are quite January 21, is evident in a generally conserva- reticent in bidding on future deliveries, due to tive attitude of banks and business men toward lack of credit accommodations and the fear industrial expansion at this time, and in a sub- that the open market rates may again increase stantial liquidation of speculative commit- in order to stimulate an essential demand." ments. * * * In the four weeks ended District No. 5 (Richmond) says: "Borrow- February 13, the 71 banks in New York City ing is being limited to necessary purposes and which report weekly to the Federal Reserve efforts to restrict loans for speculation are Board reduced their loans $178,000,000." It being pressed.7' Elsewhere in the report it is is pointed out, however, that this contraction stated that "money is in demand at lull rates, Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

236 FEDERAL RESERVE BULLETIN. MARCH, 1920. but the needs of the district are being ampty nated, in order that funds may be conserved to provided for. While deposits have shown care for the legitimate seasonal demands which some shrinkage, many banks, when deposits will soon be upon us." were at high water, invested in outside high- In some cases it seems that the liquidation grade commercial paper. They are therefore of loans is hampered or prevented by special fortified to some extent to meet a normal circumstances over which the banks have little shrinkage in deposits and partially supply the or no control. In district No. 3 (Philadelphia), demands for pitching this year's crops." for example, it is said that "shippers of coal In district No. 6 (Atlanta) " there is an up- are much embarassed by the large amount of ward tendency of interest and discount rates money tied up by the confiscation of coal and and a prevailing disposition to restrict credit." its delivery to other than the original con- In (^strict No. 8 (St. Louis) " bankers report signees. Much delay arises in determining the that there is a strong demand for money but price of such coal, and the collection of the acthat they are now choosing their loans with a counts, during which time the shippers must get view to placing their funds where they will very unusual bank credits to carry themselves. serve the best industrial and commercial pur- This makes a serious situation for the shippers poses. Loans and investments in 35 reporting and absorbs a large amount of bank credit?' banks in this district show an aggregate de- In district No. 9 (Minneapolis) car shortage crease from January 9 to February 13 of has been a controlling factor in preventing loan $3,625,000 and the time and demand deposits contraction. "As a consequence of the slowing show an aggregate decrease of $10,407,000." down of transportation which has continued Many small dealers in district No. 8 are hav- since the beginning of the crop movement, noring difficulty in financing their business u which mal fall liquidation is nearly five months dehas developed beyond normal and at prices layed, and the Federal Reserve Banks and all which are extremely high." commercial banks are still carrying large loans, District No. 10 (Kansas City) says that "the which can not be liquidated until farm prodreport of the Federal Reserve Bank as of ucts are moved. The strain on credit is severe, February 13, 1920, shows that some progress and promises to become heavier if liquidation is being made toward contraction of the use of can not be forced during the next six weeks the credit facilities of the bank for other than and a substantial reduction of loans effected bepurely business financing." fore the beginning of spring farm operations Moreover, "76 member banks selected from due about that time. The planting season will scattered localities over the district reduced create heavy demands upon the banks because their holdings of United States securities of the scarcity and high prices of seed wheat $20,399,000 and also cut down loans secured and because of high rates of farm labor." by Government war obligations $1,505,000 in "Bankers reporting from 35 points in the the four weeks between January 9 and Febru- district show loans almost 50 per cent greater ary 6 of this year. At the same time these same than totals shown six months ago. Farmers banks increased their Federal Reserve balances and dealers generally have been forced to bor- $6,757,000 and also added $1,009,000 to de- row for various purposes, including, no doubt, mand deposits on which the reserve is com- sums to settle old obligations. With elevators puted. Time deposits were $88,242,000 on all over the district filled to overflowing with February 6, 1920, against $67,117,000 one year last year's crop and no apparent improvement ago, an increase in the year of 31.4 per cent.7' in car conditions, there is every reason to be- However, the check to loan expansion in dis- lieve that bankers will be called on to stretch trict No. 10 which followed advances in dis- their already heavy loans to meet the needs of count rates "is not expected to continue after farmers during the planting and growing seathe seasonal demands set in early in the spring. son." Serious drouths in certain sections of In fact, there is already noticeable a slightly in- district No. 9 have also helped to retard the creasing demand, which will probably necessi- liquidation of loans. tate further increases in rates/' In district No. 7 (Chicago) it is also true that "It is anticipated that March 1 settlements car shortage has resulted in hampering loan on land contracts will create an abnormal de- contraction along certain lines, as it is stated mand in certain sections and since an element that "loans to the grain and milling trade are of speculation has entered into land dealings in still at the peak," grain not having moved as the last year, some difficulties are expected in freely as usual, owing to car shortage. the financing of settlements. Bankers are cau- In district No. 11 (Dallas) preparations are tioned that speculative loans should be elimi- being made for seasonal increases in loans. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MARCH, 1920. FEDERAL RESERVE BULLETIN". 237 "The district has now passed the peak season retail tradejindex forms from representative of its surplus funds, and the banks report the department stores. The composite figures for beginning of a strong demand from tneir cus- the cities and districts are simple averages. In tomers for financing their needs during the districts Nos. 1 and 12 the data were received in coming season." (and averages computed from) actual amounts On the basis of the evidence presented above, (dollars). In district No. 2 the material was rewith due allowance for the unfortunate conse- ceived in the form of percentages. However, quences entailed by the partial breakdown of the stores reporting in this district are of relatransport facilities, and for normal seasonal tively the same size, so that it is felt that the increases in loans, it would appear that pros- error involved in computing averages from the pects are good for further progress in the percentages is comparatively small. For the direction of credit contraction and for increas- month of January, 12 stores reported in disingly rigid scrutiny of the character of loans. trict No. 1, 5 in district No. 2, and 27 in district No. 12. For the earlier months the RETAIL TRADE. number of stores varied somewhat, due to the In the tables following is given a summary of inclusion of new stores from time to time in the the results obtained during the past few months reporting list. in districts Nos. 1, 2, and 12 on the regular Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

238 FEDERAL RESERVE BULLETIN. MARCH, 1920. Condition of retail trade in Federal Reserve districts Nos. 1,2, and 12. [Percentage of increase.] <Comparison of nei sales with those of corresponding period previous year. 1919 July 1, 1919, to close of— August. Se b p e t r e . m October. No b v er e . m- De b c er e . m- 1920. August. S(j b p e te r. m- October. No b v er e . m- De b c e e r. m- District No. 1: Boston 22.4 30. £ 52.0 42.3 33.2 19.4 30.8 33.0 36.3 Outside 41.9 43.5 38.5 — Total 42.1 34.8 37.2 District No. 12: Los Angeles 48.8 68.3 110.6 88.7 77.3 83.8 58.3 52.9 69.9 77.2 77.3 San Francisco 31.3 40. S 92.3 ' 45.2 54.6 53.5 30.0 33.1 46.5 46.3 47.1 Oakland 20.7 25.1 68.5 30 3 29.8 41.4 20.1 22.4 32.3 31.9 31.9 Sacramento 16.7 32.£ 69.2 36 6 50.7 54.2 15.4 22.4 35.7 35.7 39.5 Seattle 23.7 27.6 50.6 21 0 28.6 23.9 24.4 28.3 31.6 29.5 29.3 Snokanp 176 0 46 A 77 1 36.2 99.9 70.4 72 0 Salt Lake City 23.2 33.4 44.8 42.7 32.3 23.8 23.9 25.8 24.8 32.0 29.2 Total 30.3 40. € 82.0 46.1 50.7 51.7 31.0 34.4 46.9 47.5 47.0 District No. 2: New York City and Brooklvn 49.0 43.4[ 49.2 54.6 44.0 43.6 49.7 Stocks at end of month compared with— Same month previous year. August, Septem- October, Novem- Decem- January, August, Septem- October, Novem- Decem- January, 1919. ber, 1919. 1919. ber, 1919.ber, 1919. 1920. 1919. ber,1919. 1919. ber,1919.ber, 1919. 1920. District No. 1: Boston 6.4 11.4 4 9 25 4 29 7 i 6 3 5 3 7 5 i 0 9 i 5 2 Outside 24.9 28.4 i 13.8 13.7 Total 25.2 29.6 16.1 15.1 District No. 12: Los Angeles 6.3 , 1.6 13.9 19.5 31.0 44.0 5.5 4.2 5.6 10.7 110.9 9.7 San Francisco 10.6 15.5 26.5 32.7 45.9 15.6 13.2 . 9.7 2.2 i 11.1 4.7 Oakland i 7.5 1.4 4.9 9.2 10.6 6.3 12.6 5.4 .2 i 9.7 18.4 Sacramento 120.3 110*. 7 14.6 .3 18.7 4.8 3.7 16.1 Seattle 7.2 17.8 15.2 15.3 31.4 44.5 22.7 13.2 6.5 i 2.9 i 18.9 i 2.0 Spokane 13.8 13.2 25.4 3.4 U5.6 9.4 Total .9 7.0 11.9 17.5 28.5 38.0 12.6 10.3 6.5 1.3 i 13.3 2.6 District No. 2: New York City and Brooklyn 7.1 12.9 36.4 44.0 .1 15.2 i 10.4 11.9 Percentage of average stocks at end of each month to Percentage of outstanding orders at end of month to average monthly sales for same period. total purchases during previous calendar year. July 1,1919, to end of— Jan. 1, A 19 u 1 g 9 ., . S 1 e 91 p 9 t . ., O 19 c 1 t 9 ., .' 19197 D 19 e 1 c 9 , . e J 1 n a 9 d n 2 0 ., o . f A 19 u 1 g 9 ., . S 1 e 9 p 19 t . ., O 19 c 1 t 9 ., . N 19 o 1 v 9 ., . D 19 e 1 c 9 , . J 1 a 9 n 20 ., . District No. 1: Boston 277.0 461.9 367.4 360.7 320.8 21.5 18.1 19.4 24.8 26.5 Outside 413.9 229.8 13.7 16.7 Total 382.1 306.0 23.1 24.0 District No. 12: Los Angeles.. 481.7 459.5 495.6 485.6 424.3 422.7 27.9 32.7 45.1 53.5 48.1 33.3 San Francisco 418.6 460.5 442.8 453.0 403.1 405.2 34.1 28.1 25.8 29.5 28.1 18.2 Oakland 547.1 564.7 558.3 559.1 600.2 490.6 Sacramento 468.2 400.7 355 9 339 3 Seattle 411.6 459.0 422.3 432.0 378.0 427.1 29.2 28.3 25.1 22.1 32.2 18.4 Spokane 462 4 411 5 508 8 20 0 34 5 37 2 Salt Lake City 46.5 16.8 11.4 8.2 Total 422.4 470.7 459.3 463.1 422.6 429.0 34.3 29.1 29.6 29.2 32.3 28.0 District No. 2: New York City and Brooklyn 573.4 504.6 343.4 336.9 32.8 26.4 36.3 22.8 1 Decrease. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MARCH, 1920. FEDERAL RESERVE BULLETIN. 239 In district No. 5 reports from representative DISTRICT NO. 11. department stores throughout the district give the following averages. These averages are January, 1920, retail trade compared with December, 1919. made from percentages and are unweighted. [+=increase; —=decrease.] Percentage of increase in net sales for January, ! Unfilled i 1 n 9 g 2 ) 0 , over those for January, 1919 (9 stores report- 8. 9 Reporting lines. r F ep ir o m rt s - Sales. S p e r ll i i c n e g . at S e to n c d k s of I i o w rd h e o r l s e s a a t le ing. month. end of Percentage of increase in stocks on hand at the end month. of January, 1920, over those on hand at the end I of January, 1919 (8 stores reporting) 33.1 Percentage of increase in stocks on hand at the end Per cent. Per cent, i Per cent. ! Per cent. Groceries -46 I - 2 j of January, 1920, over those on hand at the end Furniture -26 + 12 + 3 ! ' '+ 6 of December, 1919 (7 stores reporting) 16. 3 Dry goods -48 + 10 -10 -10 Clothing -27 + 10 + 15 + 15 Shoes -28 + 10 In district No. 6 reports from representative Hardware +26 + 5 + 7 > + 15 department stores throughout the district give J F e a w rm el r i y mplements... - + 6 5 0 2 + -1 7 0 0 -r25 the following averages. These averages are made from percentages and are unweighted. i No record. January, 1920, retail trade compared with January, 1919. Percentage of increase in net sales for January, 1920, over those for January, 1919 (8 stores reporting).. 29. 6 f+= increase; — = decrt ase. ] Percentage of increase in stocks on nand at the end of January, 1920, over those on hand at the end of January. 1919 (7 stores reporting) 24. 7 Unfilled Pe o rc f e J n a t n ag u e a r o y f , 1 in 9 c 2 r 0 e , a o se v e i r n t s h t o o s c e k s o o n n h h a a n n d d a a t t t t h h e e e e n n d d Reporting lines. r F e i i p n r o g m r . t s - Sales. S p e r l i l c in e. g a m t S e t o o n n c d t k h s o . f w or e h d n o e d l r e s o s a f a l t e of December, 1919 (7 stores reporting) 12. 6 month. Percentage of outstanding orders at the end of January to total purchases during calendar year Per cent. Per cent. Per cent. Per cent. 1919 (7 stores reporting) 16. 3 Groceries 3 + 1 +25 — 7 0) Furniture 2 +118 +45 +46 + 6 Dry goods 3 + 38 +30 + 12 + 20 In districts Nos. 10 and 11 inquiries made of Clothing 4 + 25 +25 + 17 + 20 several stores in a number of lines brought the H Sh a o r e d s ware 2 2 + + 7 1 5 0 + + 2 3 0 1 + -1 2 0 0 + 15 following average results: Farm implements... 2 +195 + 10 -10 +25 Jewelry 1 + 30 +25 + 75 i No record. DISTRICT NO. 10. Percentage increase in net sales, January, 1920, over net sales, January, 1919: Discount Policy and Credit Control. Dry goods (13 stores reporting) 27.8 Furniture (4 stores reporting) 96. 2 Hardware (4 stores reporting) 24. 5 [Extract from the Sixth Annual Report of the Federal Reserve Board to Congress. Reprinted owing to exhaustion of advance edition of Millinery (2 stores reporting) 57. 5 the annual report.] Groceries (7 stores reporting) 36.5 Percentage increase in average stocks at close of The experience of the past three years has January, 1920, over stocks at close of same month demonstrated the expansive power of the Fedlast year 12. 7 Percentage outstanding orders for stocks (cost price) eral Reserve System. It should be understood, at close of January, 1920, to total purchases during however, that an elastic system of reserve the calendar year 1919: credit and note issue implies capacity to con- Cotton goods 20. 7 trol and the ability to curtail credit. The Woolen goods 38. 9 Silk piece goods 19. 9 ability of the system to check expansion under Hosiery and knit underwear 51. 7 present circumstances and to induce healthy Men's and boy's clothing 43. 4 liquidation is now to be tested. Men's and women's shoes 23. 6 Owing to the abnormal ease of money Women's ready-to-wear 18. 9 throughout the year 1915 and during the All classes of merchandise 31. 9 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

240 FEDERAL RESERVE BULLETIN. MARCH, 1920. greater part of the year 1918, the Board had might lend freely on bonds for which the Tittle opportunity to test the efficiency of what subscribers were unable to pay. The public it conceived to be the correct discount policy. was urged to borrow and buy, and it was The principle had been adhered to consistently found after the close of the Victory loan in that the Federal Reserve Banks should not May, 1919, that more than 20,000,000 subencourage rediscounting by members for the scriptions had been received in response to sake of profit, but that their own resources this appeal. should be kept liquid and their reserve position But in addition to the appeal to borrow and strong. buy there was also added the injunction to Although section 5202 of the Revised Stat- save and pay. To assist this process, during the utes, which provides that no national banking 18 months when the war was in progress, there association shall at any time be in anyway was established a rigid control of such credits liable for borrowed money to an amount ex- as were not essential, directly or indirectly, to ceeding the amount of its capital stock, had the prosecution of the war, and the American been amended by excepting liabilities incurred people proved their ability to economize and under the provisions of the Federal Reserve to cooperate in the nation-wide policy of Act, it was not contemplated by the Board that conservation. As a result of this control of the member banks would, except to meet sea- nonessential credits, and of the cooperation of sonal requirements or emergencies, avail them- the banks and the public, the Treasury was selves of this amendment in order to extend able to float within a period of two years their rediscount lines beyond the original limi- $25,000,000,000 of interest-bearing obligations tations. It was the Board's view also that as without reducing the reserves of the Federal a rule the discount rates of the Federal Reserve Reserve Banks below a point which in normal Banks should be higher than current market prewar times would have been regarded as a rates, thus offering no incentive to member very strong reserve for a central bank. banks to rediscount for the sake of making a The combined reserves of the 12 Federal profit in the transaction. Reserve Banks on January 3, 1919, amounted Because of this policy and of the conditions to 51.3 per cent of their liability for deposits which prevailed up to the time when it began and note issues. Due partly to the gold to appear than the United States would be embargo, this percentage was well maintained drawn into the war, the reserve position of the during all the period of uncertainty which pre- Federal Reserve Banks was so strong as to ceded the flotation of the Victory loan and for suggest an analogy between the system and a some time thereafter, for not until July 9, after safe-deposit vault. the gold embargo had been removed, did the In his address to Congress, urging the declara- reserves fall even fractionally below 50 per tion of a state of war with Germany, the Presi- cent. On September 26 the reserves stood at dent pledged all the resources of the Nation—- 51 per cent, after which date they show a which, of course, include its man-power, money, steady and continuous decline to 44.8 per cent credit, and goods—to the successful conduct of on December 26. the war. By an overwhelming vote the Con- Although the period of war financing did gress of the United States carried out the not terminate with the year 1918 and the recommendations of the President, thus com- Federal Reserve System was consequently mitting the country to the principles and poli- under the continued strain of war finance, cies outlined in his address. that strain had to be met without the aid of Normal policies had to be subordinated, war restrictions. The safeguards afforded by just as private business was subordinated, to these restrictions were removed, for it was Government business, and discount rates were impracticable to continue them in time of of necessity fixed with the primary object of peace. There is no longer an embargo on assisting the Treasury operations. How effec- exports of gold nor any regulation or control of tive this policy was is now a matter of history. foreign exchange, with the trifling exceptions As has already been pointed out, the Federal already noted; the controls set up over exports .Reserve Banks became great bond-distributing and imports, production and consumption,, organizations; firms and corporations, large with a view of conserving the national reand small, men and women in every walk of sources and reducing waste, have practically life, were urged to subscribe for bonds, and disappeared. As a result the problems of the the credit facilities of the Federal Reserve Federal Reserve System have been greatly Banks were placed at the disposal of member increased, more particularly the problem of and nonmember banks in order that they controlling credit. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MARCH, 1920. FEDERAL RESERVE BULLETIN. 241 The Federal Reserve System lias met the ion, anticipating large profits, is not checked requirements of war ana readjustment by by any reasonable advance in rates of interest. expanding without, however, encroaching upon Tnese conditions are all adverse to an easy and its legal reserves; it is capable, if need be, of effective operation of credit control by means expanding still further without having recourse of discount rates. to the emergency provisions of the act, and Nevertheless, the discount rate is an indisvery much further by availing itself of those pensable factor in the regulation and control of provisions. But the time has come for it to redit. When there are legal limitations on demonstrate its power to move in the opposite the rates member banks may charge, a high direction, and to prove its ability to do so reserve bank rate has a restraining influence without shock and with a minimum disturbance upon them and upon their customers. of business and industry. Although there are no specific limitations Fortunately the condition of the Treasury imposed upon the amount of borrowings by is such that the Board can now feel free to member banks at the Federal Reserve Banks inaugurate discount policies adjusted to peace- there is a potential limitation provided for in time conditions and needs. The large volume the act. In that part of section 4 which of Government bonds looking for permanent relates to the duties of the board of directors ownership during the year was, however, an of a Federal Reserve Bank there is the followimportant factor in the situation and retarded ing: "Said board shall administer the affairs of the adoption of a normal discount policy. said bank fairly and impartially and without Until the absorption of Liberty bonds is discrimination in favor of or against any memfairly complete the Federal Reserve System ber bank or banks and shall, subject to the will be in a transition stage and normal bank- provisions of law and the orders of the Federal ing policies can not be made entirely effective. Reserve Board, extend to each member bank The absorption by investors of Government such discounts, advancements, and accommodabonds, as indicated by the figures cited earlier tions as may be safely and reasonably made in this report, is a gratifying step in this with due regard for the claims of other memdirection. It should, however, be repeated ber banks." that the time has come for the system, in the Should all the member banks of a Federal interest of commerce and business, to exercise Reserve Bank be borrowers, and should all its power to regulate and control the credit ask for accommodations proportionate to those situation. which may have been advanced to a few, the The normal and traditional method of credit Federal Reserve Bank would not be able out control has been the discount rate; its efficacy, of its own resources to meet the demand. however, presupposes normal conditions. An Therefore it is possible to determine theoretiadvance in rate operates under normal condi- cally what a fair line of accommodation for any tions not only to diminish the demand for member bank would be; that is, what amount credit by making certain activities unprofitable of accommodation can be granted "safely and but as well to increase the supply of credit by reasonably * * * with due regard for the attracting it from other centers or countries. claims of other member banks." The conditions that make this traditional Any attempt, however, to control credit by control effective do not all exist at the present the application of this rule is subject to serious time. The United States stands almost alone administrative difficulties. If the paper offered as an important free gold market. Other is eligible and good, it would be better for a countries are seeking and have obtained large reserve bank to grant accommodation at a credits in the United States, as is evidenced by price rather than to refuse it entirely, but the the fact that our exports exceeded imports act, subdivision (d), section 14, provides that during the year by about four billions of a Federal Reserve Bank shall have power to dollars, and we have paid our adverse balances establish from time to time, subject to review in gold. It should be recognized that credits and determination of the Federal Reserve extended to Europe create a demand for com- Board, rates of discount to be charged by the modities that competes with the domestic Federal Reserve Bank for each class of paper, demand and this competition is one of the which shall be fixed with a view of accommopotent causes of high prices. The demand for dating commerce and business. There is no commodities from domestic as well as foreign authority, however, for establishing graduated sources is so far in excess of the supply that rates based upon the total borrowings of a the increased cost of credit due to an advance member bank, and consequently when it in rates is absorbed in thefprice, and specula- becomes necessary to advance the discount Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

242 FEDERAL RESERVE BULLETIN MARCH, 1920. rate in order to curb the demands of those trol must always be judged by what it does to banks rediscounting with the Federal Reserve maintain a healthy condition of mind on the Banks in very large amounts the same rate part of all sections and classes of the producwould have to apply to the moderate require- ing community. The ultimate test of the funcments of other member banks who may redis- tioning of a credit system must be found in count with the Federal Reserve Banks infre- what it does to promote and increase the proquently and never excessively. Thus the duction of goods. True in general, the truth application of rate advances as a corrective or of this observation deserves to be particularly deterrent to certain banks tends to raise the emphasized in the present deranged state of level of current rates to all. world industry and world trade when pro- The Board, therefore, recommends to Con- duction is the crying need of the hour everygress that an additional power be granted it, where. by adding to subdivision (d), section 14, a Too rapid or too drastic deflation would deproviso that each Federal Reserve Bank may, feat the very purpose of a well-regulated credit with the approval of the Federal Reserve system by the needless unsettlement of mind Board, determine by uniform rule, applicable it would produce and the disastrous reaction to all its member banks alike, the normal that such unsettlement would have upon promaximum rediscount line of each member ductive industry. bank and that it may submit for the review Radical and drastic deflation is not, therefore, and determination of the Federal Reserve in contemplation, nor is a policy of further ex- Board graduated rates on an ascending scale pansion. Either course would in the end lead to apply equally and ratably to all its member only to disaster and must not be permitted to banks rediscounting amounts in excess of the develop. The credit situation in the United normal line so determined. In this way, in States is at bottom sound and safe. Our the opinion of the Board, it would be possible economic and financial position is essentially to reduce excessive borrowings of member strong. There need be no occasion for apprebanks and to induce them to hold their own hension as to our ability to effect the transition large borrowers in check without raising the from war-time to peace-time conditions if reabasic rate. The Federal Reserve Banks would sonable safeguards against the abuse of credit thus be provided with an effective method of are respected. There is, however, no need for dealing with credit expansion more nearly at precipitate action or extreme measures. Exthe source than is now practicable and without tremes must be avoided, the process of adjustunnecessary hardship to banks and borrowers ing the volume of credit to normal basis should who are conducting their affairs within the be effected in an orderly manner, and its bounds of moderation. rapidity must be governed by conditions and The expansion of credit set in motion by circumstances as they develop. Much will the war must be checked. Credit must be depend upon the cooperation of the business brought under effective control and its flow and general community. Indeed without such be once more regulated and governed with cooperation progress can be neither rapid nor careful regard to the economic welfare of the substantial. Much will depend also upon the country and the needs of its producing in- rapidity with which the unabsorbed portion of dustries. the outstanding issues of war securities passes Deflation, however, merely for the sake of into the hands of permanent holders. As the deflation and a speedy return to "normal"— national debt is thus absorbed and as it is redeflation merely for the sake of restoring se- duced through the operation of the sinking curity values and commodity prices to their fund, the loan accounts of the banks should be reprewar levels without regard to other conse- duced correspondingly until the proper balance quences, would be an insensate proceeding in between the volume of credit and the volume of the existing posture of national and world concrete things, which credit helps to produce affairs. and which are the normal basis of credit, is re- It must never be forgotten that productive stored. This equilibrium, it can not be too industry is profoundly affected by credit con- frequently or too emphatically stated, can be ditions. Modern business is done on credit. restored only by speeding up the processes of One of its life-giving principles is credit. The production, by the orderly distribution of mood and temper of the business community goods, bv the avoidance of wasteful consumpare deeply affected by the state of credit and tion, and by the increased accumulation of savmay easily be disturbed by ill-considered or ings. These are the fundamental economic precipitate action. A system of credit con- processes upon which the proper functioning of Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MARCH, 1920. FEDERAL, RESERVE BULLETIN. 243 the Federal Reserve Banks must depend. The Italy alone have they actually declined from Federal Reserve System can do much to assist the 1918 level. these processes, but it can not of itself and alone The causes for the fluctuations are too compel them. Efficacious action along these complicated and diverse to make possible a lines involves the intelligent and earnest cooper- general or authoritative statement as to the ation of the business and general community. effect of war financing, Government purchases, While the Federal Reserve Board will always be submarine warfare, scarcity, etc., on the wholemindful of the interdependence of credit and sale price level. The extent to which Governindustry and of the influence exerted on prices ments have released prices and industries from by the general volume of credit, the Board war-time control, however, can be sketched in a nevertheless can not assume to be an arbiter of general sort of way,1 and certain conclusions industry or prices. Its primary duty, as the reached as to the effect of control on prices. guardian of the Nation's ultimate banking re- No consideration will be given to the influence serve, is to see that the banks under its super- of price control upon production and business vision function effectively and properly as activity nor will the fiscal aspects of the reserve banks. problem be gone into. FEBRUARY 2, 1920. ISSUES INVOLVED IN ABROGATION OF CONTROL. The first and most striking thing to note in a The Present Situation as to Price Control in comparative study of Government control is England, France, and Italy. the difference in the length and completeness of control. In the United States, for instance, PRICE MOVEMENT, 1913-1919. price control may be said to have commenced in August, 1917, and to have ended in respect to The following table represents the movement most commodities on December 30, 1918, i. e., of wholesale prices annually in the United some 18 months later. The control extended States, England, France, and Italy during the to the wholesale marketing of goods excluyears 1913-1919, according to index numbers sively, the retail prices being practically unpublished elsewhere in greater detail in this controlled. In England, on the other hand, BULLETIN: price control may be said to have begun as early as the middle of 1915 and is still effective Index numbers of wholesale prices (all commodities), 1913- (February, 1920) in the case of leading food 1919. products and coal. Prices were fixed in the (1913=100.) case of these two types of commodities both at wholesale and retail and a strict system of United rationing was enforced. In France and Italy States; United France; Bu L r a e b a o u r of K S in ta g t d is o t m . ; S G ta e t n is e t r i a q t u e. e Ita B ly a ; c h P i r . of. also stringent control of industries began in Statistics. early 1916 and in the case of many commodities is still effective. 1913 100 100 100 100 Two factors have been of primary import- 1 1 9 9 1 1 5 4 . . . 1 1 0 0 0 1 1 1 2 0 6 1 1 14 0 0 2 1 9 3 5 3 ance in their bearing upon the release of 1916 124 159 187 202 industry from control, (1) the extent to 1917 174 206 262 29£ 1918 197 226 339 413 which the Government has become involved 1919 215 242 356 *348 in the purchase and sale of goods, (2) the probable effect of the release upon the price i Average for first 10 months of the year. of goods which are important for personal A study of the table shows that prices in each consumption. England has been especially of these countries rose considerably less involved as regards the first point, due to markedly in 1919 than during any year of the her large purchases of wheat, wool, meats, war. In the United States the greatest ad- and hides from abroad and the long term of vance took place during 1917; in England her contracts for commodities bought in Ausduring 1917; in France both 1917 and 1918 saw tralia and New Zealand. All the European spectacular increases, while the same years countries have been so eager to avoid any marked the greatest increases in Italy. Although prices have risen at a less rapid rate 1 Sources: Journal of the Board of Trade, Journal of the Board of Agriculture, economic and trade journals, for England; Journal Official during 1919 than during the years of the war de la RSpublique frangaise, Bulletin de Statistique et de Legislation in the United States, England, and France, in compar^e, economic and trade journals for France; Gazetta Ufficiale del Regno d'ltalia for Italy. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

244 FEDERAL RESERVE BULLETIN. MARCH, 1920. further advance in the cost of living that Although the Government is still a large the prices and distribution of food and fuel owner of cereals and imported meats and the are still for the most part under Government prices of these commodities are under control, supervision. Commodities which are used their distribution takes place through ordinary for business purposes, such as construction trade channels, and personal consumption is and building materials, have for the most free. The Government is making every effort, part been released from control more quickly so far as we can judge, to avoid further purthan other commodities. Exceptions to this chases on a large scale. The Australian conare found, however, in the case of France, tract regarding the purchase of wheat and live where it was necessary to continue the con- stock will expire during 1920, and no agreetrol of certain types of timber and glass to ment has been reported regarding a domestic insure a supply for reconstruction purposes. cereal guarantee lor 1920. According to the The abrogation of regulations as to imports terms of the 1919 contract, a price was guarand exports has varied from country to coun- anteed the British farmers for their wheat, try in accordance with the specific problems barley, and oats. The price obtained on each of the respective countries. In England dur- individual lot sold by the farmer, however, ing the transitional period between complete was not a fixed price but one arrived at by control of imports and the release of control ordinary market methods. The difference be- (September 1, 1919) commodities having their tween this price and the guaranteed price was origin within the Empire were allowed free to be met by the Treasury. importation, also raw materials and semi- In order to avoid a serious increase in the manmfactured materials necessary for industry. price of bread to the consumer, wheat and Manufactured articles, except those which wheat products have been subsidized by the were needed for personal consumption, were Government, the difference between the buyrestricted. On September 1 all import regu- ing price and the selling price being a charge lations were removed. Exports were, of course, on the Treasury. No date has been mentioned encouraged to nonblockaded countries except for the removal of this subsidy. in the case of materials needed at home Imported commodities in the meat and dairy for military, personal, or industrial consump- products groups are still under Government tion, and in the case of goods benefited by control. Large stocks of Australian and Argensubsidy or purchase by the Government. tine beef are owned by the Government; and The latter regulation has been felt especially the ministry of food is still purchasing bacon, by individuals engaged in such reexport ham, and lard abroad and allocating them to trades as those in wool and hides. In France, ordinary trade channels for distribution. relaxation of the restrictions on imports Home-killed beef is still controlled and a price began in January, 1919, and continued until guaranteed to the producer. In spite of this July, when the only commodities of impor- control, it has been necessary to advance tance still controlled were frozen meats, cereals, wholesale prices of meats on several occasions news print, and ammunition. These were during the past year. It has been announced being imported under Government purchase. that price control will continue as regards Export control, according to the most recent meats and live stock until June 30, 1920. information available here, continues in many Foreign butter and cheese are likewise still important lines, especially foodstuffs, coal, iron being purchased by the food ministry and alloore, and certain chemicals. cated to the trade at fixed prices. Retail prices of imported butter are fixed but not ENGLAND. those for homemade butter. When control was lifted in the latter case, the retail price Food control.—The ministry of food in Eng- advanced from 2s. 8d. to 5s. per pound in one land, established in December, 1916, exercised day. Control of milk, home-prpduced cheese extreme control over the supply, distribution, and butter, and cream was removed on Janconsumption, and price of foods during the uary 31, 1920. war. It is stated that 90 per cent of the arti- Sugar is one of the few commodities still racles commonly consumed in England came tioned. In fact, due to the shortage in the under its control. The system of rationing Government supply, it was necessary to denecessitated by the war was for the most part crease the ration on January 15, 1920. Sugar lifted during 1919; price control, both wholesale is being imported both by the Government and and retail, however, has continued to date, and by individual dealers, the latter apparently dealers in many lines are still under license. supplying the manufacturing establishments at Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

245 MARCH, 1920. FEDERAL RESERVE BULLETIN. a "reasonable77 price and the former supplying United States. Presumably this policy will be the distributive trades. The price of the Govern- pursued until the Government stocks are apprement, although recently advanced, is still under ciably reduced. present world prices. ^Restrictions regarding It should be noted that, although the Govboth the supply and the price of tea were ernment has been deeply involved in the wool removed in March, 1919, constituting probably business throughout 1919, since April 1 the the first important abrogation of control in the market has been practically free. food group. The intensive control of the hide and leather Hide and leather and wool control,—War-timeindustry began in 1916, and by the time of the control of cotton, jute, and hemp was speedily armistice prices had been established for raw removed after the armistice. The control of hides and leather and in certain cases, such as wool and of hides and leather had been so far- shoes, for leather products. At the beginning reaching during the war, on the other hand, of 1919 the fixed prices for domestic heavy that the Government is still involved in their hides and calfskins were decidedly below transaction. world markets, and the East Indian supply of Wool control began in 1916 with the pur- kips, obtained by the Government at an exchase of the domestic clip and that of Australia ceedingly favorable price, was released at lower and New Zealand by the Government. Since prices than during the war. As was the case that time all wool produced at home and in with wool, the fact that the world price of these dominions has been taken by the Gov- hides was far above that fixed for heavy domesernment, the Australian wool at 55 per cent tic hides in England made it possible for the above prices in 1913-14, the English at a rate Government to profit very materially by advarying from 35 per cent over the prices of vancing the selling price of the hides. At the July, 1914 (for the 1916 clip), to 60 per cent same time, the public was obtaining the hides (for the 1918 clitf). The 1919 domestic clip far cheaper than they could be imported. was not purchased, but the Australian contract According to the most recent information is effective until June 30, 1920. During the available here, prices of domestic hides and war, prices of yarns and fabrics were not con- calfskins are still controlled. Imports are trolled. The only effort made on behalf of the free, but there is no stimulus for importation, consumer occurred late in the war in the form of because of the cheapness of domestic hides. the encouragement by the Government of As regards leather, this branch of the industry standardized clothing for men at fixed prices. was freed from control in June, 1919. Immediately after the armistice the wool coun- Coal control.—British coal control is so incil was formed, consisting of representatives of volved in the question of nationalization of the employers and workers and of the Govern- industry that it can not be classed with the ment. This council has advised the board of other strictly war-time controls. At the prestrade on all matters of policy since that time. ent time the price both at the pit head and at Summed up, the developments of 1919 may be retail is fixed, and the household consumption stated in the following fashion: Until March 31, of coal is limited. Wages in the industry are 1919, wool was allocated at the prices fixed in fixed by law, and for the year ending March 31, England during the last year of the war. 1920, profits are likewise guaranteed. These prices were considerably under world The price of coal to the domestic consumer prices. In April, although a certain amount is subsidized by the returns from the export of wool continued to be rationed by the Gov- trade, where, due to a world shortage of coal, ernment at prices 7J per cent lower than those very high prices have prevailed. The system prevailing until then, the bulk of the supply of limited prices which applied to the coal exwas sold at auction at whatever price the wool ported to Italy and France during the war was would bring. It was thought that the price removed in May, 1919. The foreign demand would fall with the increase in supply, but in- was so great that it became necessary in Nostead it continued to rise very strikingly, espe- vember, 1919, to limit the amount of coal cially as regards the finer grades. September which could be exported; at the same time the 1 the auctions were open to foreign buyers, returns were such as to make possible a 10whose demand, added to an abnormal domestic shilling reduction in the price of domestic and demand, kept prices from declining. At the household coal. Prices of bunker coal used in present time the British Government is not the coastwise trade were reduced to the level only auctioning wool in London but also in the of prices of industrial coal. The 6-shilling in- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

246 FEDERAL RESERVE BULLETIN". MARCH, 1920. crease in the pit-head price which occurred in milk, butter, and cheese. Meats and edible July, 1919, was not otherwise affected in oils, on the other hand, have been freed from December revision of prices. control. Other controls.—Control of prices in the iron Goal prices controlled.—Price fixing and and steel industry ceased on April 30, 1919, rationing of coal continues in effect and in with the removal of the Government subsidy. addition freight rates for fuel carried on French Due to the shortage of iron and the large home boats are regulated between England and demand, license control of the export trade France. Although the actual importation of continued until November 21. Since that time coal is handled by the trade it is subject to the the industry has been entirely free. The supervision of the National Bureau for Coal. lumber trade is likewise entirely uncontrolled Abrogation of controls.—Otherwise French at the present time; also the cotton, paper, industry is apparently free from control. The and rubber industries. The nonferrous metal consortiums created for the purpose of Govindustries, on the other hand, are apparently ernment purchase and control during the war still subject to license. and immediately after had practically disappeared by the middle of 1919. As regards FRANCE. iron and steel, centralized importation of pig iron ceased on April 1, 1919, and at the present Food control.—Following the principle of time the industry appears to be free from consupplying the population with cheap oread, trol. The importation and allocation of cotton the price of bread was subsidized by the continued under Government supervision until Government during the war. The process of October 30, 1919. Operations on the Havre subsidizing applied to all stages in the making Bourse were freed from control on June 20, of bread. The price of domestic and foreign 1919. Between June, 1919, and January, 1920, wheat was kept far under the cost price, the contract prices for cotton more than doubled. price of flour to the baker was similarly regu- The Government sold its stocks of wool at lated, and finally the price of bread to the auction in February, 1919, and since that time consumer was s(et at a point materially under wool has been imported on private account cost. For instance, during 1919 the Govern- either from England or South America. ment buying price for native wheat was 73 francs, for foreign wheat approximately 120 ITALY. francs, whereas the sale price was 43 francs. The only information available in this Beginning with March 1, 1920, the Government country regarding price control in Italy is in subsidy is removed except in the case of foreign the form oi official decrees or their abrogation. wheat. Seventy-three francs will be the It is possible that in actual practice the rules average price to the native farmer, 76 francs laid down in the decrees have been modified. the price to the miller, the difference to cover Unless these modifications have been embodied the cost to the Government for handling the in later decrees, we have no knowledge of them. transaction. Flour prices are to be increased Food control.—Although general price confrom an average of 63.5 francs per 100 kilos to trol had been authorized in April, 1916, it was 93 francs, and bread prices will likewise be not until January, 1918, that extensive powers fixed so as to coyer cost. The French Govern- were given to the "Commissario Generale per ment is thus relieved of a heavy fiscal charge gli approvigionamenti e i consumi alimentari." and the people are obtaining bread at approxi- On the latter date, authorization was given mately cost price. A special provision has for the requisition of foodstuffs and for the conbeen made for providing cheaper bread to trol of their consumption. Between January, famines with two or more children, to the old 1918, and August, 1919, decrees were passed and infirm, and to war veterans with 50 per authorizing the control of various food procent disability. ducts; in August, 1919, the following classes of The same general method of control pre- foods were still under control: (1) Cereals and vailed with regard to sugar during the war. their by-products and leguminous plants, (2) Beginning with December 21, 1919, however, sugar, (3) meats, (4) milk and its products, the price of sugar was raised so as to cover the (5) oil, (6) preserved fish. Maximum prices cost to the Government. Unlike the case were fixed for the 1919 crop of wheat, corn, of bread, the consumption of sugar is still sub- oats, barley, and rye. Dealings in these comject to control. modities were apparently otherwise uncon- Other foods which are controlled are rye, rye trolled. Prices of sugar are likewise fixed, as flour, and meslin in the cereal group, coffee, well as prices of milk, cheese, and butter. Fish Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MARCH, 1920. FEDERAL RESERVE BULLETIN". 247 prices continue fixed, but trading in and prices penditure within the limits of their income, and they lor meats are apparently free. clamor for afremedy. So far as I have seen, the most Other commodities.—Aside from foods, the popular proposal for reducing prices is to fix a limit to most important group of commodities still sub- the currency note issue. It is supposed that if the curject to control are textiles. In September, rency were strictly limited in amount, and at the same 1919, the Minister of Industry, Commerce and time had a proper proportion of gold backing, prices Labor was given power to determine the prices would not only cease to rise, but would begin a downof textiles as well as the quantity of woolen and ward movement toward their former level. In this view cotton goods to be put at the disposal of the the increase in currency is regarded as the cause of high ministry for sale to the less well-to-do classes. prices. But is this really the case? May it not be that Although the shortage of coal is extreme, the great increase in currency notes is itself only an there is, so far as we can discover, no Govern- effect of another cause, a mere link in the chain which ment supervision of the price or allocation of ends in high prices? What is the relation between the the supplies. Until May, 1919, British coal increase of currency and high prices? What has caused was sold to Italy at a limited price, but since the increase of currency? What has caused high prices? that time no preferential rate has been ac- This is the problem I am going to ask you to consider corded her. to-day. MAIN CAUSES OF THE RISE IN PRICES. CONCLUSIONS. In examining this question I should like to guard By reference to the table at the beginning of myself at once from misunderstanding. It is an accepted this article, it may be observed that prices in doctrine that there are three factors governing the price England in 1919 averaged 140 per cent above of commodities—demand, supply, and cost of production. those in 1913, whereas prices in France and Although to-day I propose to deal with only one of these Italy averaged over 250 per cent above those factors—demand—I do not mean to imply that the others in 1913. The marked difference between conhave not their due weight. The supply of commodities ditions in England and those in the other two is less to-day than it was in 1914, and in consequence, if countries may be accounted for in part by the the other factors had remained constant, some rise in fact that England controlled large supplies of prices would inevitably have occurred from this cause important commodities which she was able to alone. Again, chiefly owing to higher wages, cost of sell during the war and since at less than the production has risen greatly, but in the sequence of current price. Her coal was sold much cheaper events it has generally followed, not preceded, the higher at home than abroad, hides could be obtained prices. Whatever share, however, these two factors may at less than current world market prices, wool have had in raising prices there can be no question of was cheap until recently, and certain foodthe importance of the third. stuffs were likewise comparatively cheap. Italy and France, on the other hand, having SUPPLY AND DEMAND. neither ships nor priority in some of the leading raw materials markets, were forced to pay con- Demand, measured by the purchasing power of the siderably higher prices. Where these prices public, has increased enormously. It does not, of course, were subsidized by the Government, the cost necessarily follow that a man spends more because he eventually will be passed on to the public in the has more money in his pocket or a larger bank balance form of increased taxes. than usual; yet if we take the community as a whole we may be quite sure that as spending power grows, the demand for goods grows with it, and as demand grows, prices rise. Here, then, is the first step we must take Bank Deposits, Prices, and Currency. to solve our problem; we must find the cause of this Following is a part of an address delivered increase of spending power. by Eight Hon. R. McKenna before the general COMPARISON OF PRESENT AND PREWAR CURRENCY FIGURES, meeting of the shareholders of the London PRICES, ETC. Joint City and Midland Bank, Limited, held Before proceeding further it will be well to recall the in London on January 29, 1920: estimated figures of currency, bank deposits, and prices of commodities, as they stand to-day compared with 1914. THE RISE IN PRICES. First of all I will take the figures of currency. It is Nothing gives so much concern to the public at the estimated that in 1914 the total amount of currency in present time as the great rise in prices. Masses of people circulation, i. e., gold, silver, copper coin, and bank find almost insuperable difficulty in bringing their ex- notes, was £128,000,000. This figure represents the total Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

248 FEDERAL RESERVE BULLETIN. MARCH, 1920. amount of currency held by the public, but does not terms which I will explain directly, deposits arise from include currency held by the banks. To-day the corre- payments by a bank which are neither charged against sponding figure is estimated at £393,000,000, an increase an existing deposit nor used for the repayment of an of £265,000,000, or 207 per cent. existing debt to a bank. I am speaking now of bank As I am giving these figures I may as well state here deposits in the aggregate, with which alone we are dealthat the estimated amount of currency held by the banks ing, and not of deposits in any individual bank. Payin 1914 was £75,000,000 and in 1919, £191,000,000, an ments by a bank which are not charged against an existincrease of £116,000,000, or 154 per cent. ing deposit consist chiefly of bank loans or advances. But they include also all bank investments and all pur- BANK DEPOSITS, PREWAR AND PRESENT TIME. chases and payments made by the bank for itself and Next I will give the figures of bank deposits, but in charged against its own resources. It will simplify the doing so I should explain that they do not include Bank discussion if we treat bank investments, as we are enof England deposits. Before the war, the total deposits titled to do, as loans of a more permanent nature than of the banks of the United Kingdom, including under the ordinary loan or advance. Similarly the purchase the name deposits—and this is important to note—money or discounting of bills may also be regarded ss a bank loan. held on current account as well as on deposit account amounted to £1,070,000,000. The corresponding figure BANK DEPOSITS AND THE MAIN SOURCE OF THEIR INCREASE. last month was about £2,300,000,000, an increase of The aggregate, then, of bank deposits is increased by £1,230,000,000, or 115 per cent. payments into banks of currency, by bank loans, and by payments by banks on their own account to meet their PUBLIC SPENDING POWER COMPARED. own expenses, as for salaries or to buy new premises. In The actual spending power of the public is gauged by making a comparison between bank deposits at two differthe total amount of currency in circulation added to the ent dates, we may reasonably leave this last source of total amount of bank deposits. In 1914 the public increase out of account. Just as payments on a bank's spending power was £1,198,000,000; to-day it is own account augment deposits, so receipts on a bank's £2,693,000,000, an increase of £1,495,000,000, or 125 own account diminish them. Payments and receipts have per cent, both grown considerably since 1914, but they have both THE PRICE OF COMMODITIES. grown at the same pace, and comparing one year with another, we may fairly set off the total of the payments I turn now to a comparison of the prices of commodities against the total of receipts. of everyday use or consumption before the war and at the present time. The figures are based upon the return BANK DEPOSITS INCREASED BY BANK LOANS. issued by the ministry of labor, and are expressed in the form of percentage increases over the corresponding prices We have now reached the point at which we may say of 1914. If we take 100 to represent the cost of living that payments into banks of currency and bank loans, givin 1914, the corresponding figure to-day would be about ing to the word "loan" the widest meaning, are the only 225, or an increase of 125 per cent. In estimating the sources of increase of the aggregate of bank deposits which cost of living we have included all ordinary expenses, we need consider. At the risk of wearying you with a and we have taken the commodities forming part of our discussion of a process with which you are probably everyday consumption in such quantities as we con- already thoroughly familiar, let me give a brief illustrasumed in 1914. Thus we see a marked increase in cur- tion of how bank deposits are increased by bank loans. rency, in bank deposits, and in the price of commodities. When a bank makes a loan to a customer or allows him an The spending power of the public and the cost of living overdraft, in the ordinary course the loan will be drawn show the same percentage increase of 125. upon, or the overdraft will be made, by a check upon the bank drawn by the customer and paid into someone's THE GROWTH IN SPENDING POWER AND ITS CAUSES. credit at the same or another bank. The drawer of the check will not have reduced any deposit already in exist- We can proceed now to examine the immediate question ence because we are supposing a case in which he has been before us. What is the cause of the increase in spending given a loan or allowed an overdraft. The receiver of the power, or in other words, of the increase in currency and check, however, when he pays it into his own account, bank deposits? I will ask you to consider the growth will be credited with its value, and thereby a new deposit of bank deposits first. Bank deposits are derived from will be created. The only case when a bank loan does not two sources, and from two sources only. The first and lead to a new deposit is when the check drawn against the most obvious source is by payments of currency into a loan is used by the receiver to pay off a loan which he had ' bank. Anyone who takes notes out of his note case and himself at his own bank. In the same way, when a bank pays them into his bank creates a deposit. The second buys or discounts a bill, the proceeds of the sale are paid source from which deposits are derived can not be de- into the credit of the seller's account and increase the scribed with equal simplicity. Stated in comprehensive total of bank deposits; and in the same way also, when a Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

249 MARCH, 1920. FEDERAL EESERVE BULLETIN. bank buys war loan or makes any other investment, the merchant in his turn may have borrowed from his bank to purchase money goes to the credit of somebody's account pay the manufacturer, and there may be a whole series of in some bank and increases the total of deposits. loans from banks, each paid off in its turn as the goods pass from their primitive state of raw material to their final destination as finished goods in the hands of the con- COMPARISONS AND REASONS FOR PRESENT INCREASE. sumer; but when the consumer has paid cash for the Let us look now at the increase of bank deposits since goods, all the series of loans will in the ordinary course be 1914 and see to what extent this increase is due, respec- liquidated, and there will have been an increase in bank tively, to payments in of additional currency and to bank deposits only so long as the goods were not finally disposed loans. In June, 1914, the banks held £75,000,000 of cur- of. In this view of bank transactions, loans by banks, rency. Last month this figure stood at £191,000,000. and therefore deposits, would only increase in total amount The banks, therefore, held more currency to the amount as the total of commodities increased. There would be a of £116,000,000, and to this extent the increase in the greater purchasing power for the time being, but there aggregate of bank deposits is accounted for by payments would also be a greater supply in process of production. in of currency, but] it is estimated that since June, 1914, bank deposits have risen by £1,230,000,000. If EFFECTS OF THE TRADE LOANS. £116,000,000 of this amount are accounted for by payments It will be observed that the first effect of a trade loan is to of currency intofthe banks, there remain £1,114,000,000^ increase deposits, and as the aggregate of such loans, and which, if the previous analysis be accepted as correct, we consequently of deposits and purchasing power, may be must attribute to bank loans. steadily growing in amount, it may be argued that loans of Let me guard myself, however, by saying that I do not this kind may also drive up prices. To a limited extent give these figures as absolutely exact, as the total figures this is true. of deposits given by the banks include not only customer's deposits, but what the banks term '' other accounts.'' But RISE IN PRICES ONLY PARTIALLY ATTRIBUTABLE TO BANK the error due to this omission in making a comparison LOANS. between any two years is small, and Ifthink we may accept In periods of active trade we know that bank loans w. sufficiently accurate the estimate that in round figures increase and prices rise; but the rise in prices attributable bank deposits have increased by £1,100,000,000 since 1914 to this cause can never go very far. Traders sometimes in consequence of bank loans. assume that banks have an unlimited power of making advances. They forget that every advance made by a RELATION BETWEEN INCREASE IN DEPOSITS AND RISE IN bank comes out of the bank's cash resources. «It is true PRICES. the advances return to the banks in the form of fresh deposits and thus restore the bank's cash resources to their Now that we have cleared so much ground, we must not former level, but the result is to leave them finally with forget the real object of our search. We are seeking the additional liabilities to their depositors without any relation between the increase of bank deposits, the increase addition to their bank cash. of currency, and high prices; and we have got so far as to see that bank loans are the main source of the growth of BRITISH BANKS' SOUND POLICY. bank deposits. As an increase of deposits means an addi- Happily in this country banks are careful to keep a tion to our purchasing power, we should expect such an proper proportion between their cash resources and their increase to be followed by a rise in prices. But we must liabilities, though the misguided practice known as "winguard ourselves here from a generalization which may be dow dressing," which is sometimes indulged in at the end too broad. If money is borrowed by manufacturers and of the year, might of itself throw a shade of doubt on what traders for the purpose of the production or movement of is in truth the very real virtue of our banks. commodities, the increase of purchasing power consequent The moment this proportion reaches a point below which upon the loans is followed in due course by an increase in the management think it should not go, if the strength and the amount of commodities available, and the rise in prices credit of the bank are to remain unimpaired, the bank will which might be expected from a greater demand is cordecline to extend its total of credits. We shall see later ected by -a greater supply. Let us for a moment examine how the cash resources of the banks can be increased, but what takes place when a bank makes loans or advances without such an increase any great expansion of trade in the ordinary way of trade. Suppose the case of a loan advances can not occur. It may be said that bank loans or advance to a manufacturer who uses the money to pay to traders influence prices to no greater extent than the for raw material or wages, or some other expenses in the ordinary market fluctuations. course of his business. When the goods are manufactured and sold to the merchant, it is expected that the proceeds LOANS FOR INCREASED PRODUCTION. of the sale will be used to pay off the bank loan. The Even when a bank loan is made for the purpose of ac- 1A part of this total equal to the increase in the balances of the banks quiring plant the same is true in the long run as in the case at the Bank of England has been created not by borrowings from the just described. The loan would be outstanding for a banks, but by borrowing from the Bank of England. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

250 FEDERAL RESERVE BULLETIN. MARCH, 1920. greater length of time and deposits would be increased EFFECT OF PUBLIC SUBSCRIPTION TO GOVERNMENT LOANS. until the profit made out of the use of the plant was suffi- But when the public subscribe to Government loans out cient to pay off the loan, but in due course, owing to the of their own resources they always subscribe more than additional output from the new plant, commodities would they save by curtailing their normal consumption. They bejincreased in quantity and there would be no permanent subscribe in addition what they would ordinarily save and rise in prices. On the other hand, loans by banks which invest in any case, and their investment would in one way lead to no increase of commodities tend to raise prices, but or another usually take the form of capital employed in the banks do not look upon these loans with favor, and while production of commodities. The money which would be they should be ready to assist the country's trade and proso invested is spent by the Government, and consequently duction by such advances as their customers' capital and to that extent increases the demand for goods without any growth of business warrant, they should be and are careful increase of supply either actual or prospective, except in to limit the amount of their advances for the purpose of so far as the Government may themselves have spent the, capital outlay and still more for mere accommodation. money on the erection of plant useful for peace production. With this partial limitation direct loans by the SUMMARY OF CAUSES. public to the Government through subscription to war Let me now sum up the case so far as we have gone. We loans have no effect upon prices. They do not add to the have seen that during the last six years bank deposits have total of bank deposits. The public must first draw upon increased by £1,230,000,000. Of this amount we find that their deposits with the banks in order to subscribe to the payments of additional currency into the banks account loans, and when the Government spends the proceeds of forj£116,000,000. We have seen that any other cause of the loans the money only fills up the gap in the deposits an increase in deposits except bank loans is not large, and caused by the previous withdrawals. we have concluded that bank loans have been responsible for an increase of £1,100,000,000 in bank deposits. We EFFECT OF BANK LOANS TO THE GOVERNMENT. have seen further that if these loans had been made to But quite different effects follow when the Government manufacturers and traders in the ordinary course of their borrows direct from the banks or indirectly from the banks business the increase in deposits, and consequently in purthrough members of the public who obtain bank advances chasing power, would not of itself have caused a permanent to enable them to take up loans. In each case the banks rise in prices, as the additional deposits would have been subscribe by drawing on their balances with the Bank of followed by an additional supply of commodities. To England. The money received by the Government is whom, then, have these loans been made? paid out in due course to meet liabilities to contractors, by whom again it is paid to the credit of their accounts with THE GOVERNMENT THE LARGEST BORROWER. the banks. The customers' deposits are thus increased, It is impossible to give precise figures, but the best esti- and as the banks in their turn pay the money into their mate I can form is that of the total of £1,100,000,000, accounts at the Bank of England, the previous withdrawals £800,000,000, including treasury bills, have been lent to from that bank are made good. Thus the net effect of the the State and £300,000,000 to trade. The Government, whole proceeding is to increase the total amount of bank under the overwhelming necessity of war effort, has been deposits by the exact amount which the banks have lent to the great borrower from the banks. The loans to the State the Government directly or indirectly, and the whole have led to an immense increase of deposits, and as they weight of the additional spending power is thrown upon have remained outstanding long after the commodities they prices. were raised to pay for have been consumed they have been an inevitable cause of a rise in prices. EFFECT OF GOVERNMENT BORROWING FROM BANK OF ENGLAND. THE THREE SOURCES OP GOVERNMENT BORROWING. The third case of Government borrowing which we have In order to get a full understanding of the case it is neces- to consider is that of borrowing direct from the Bank of sary now to examine the different effect upon prices of the England. In that case a credit is given by the Bank of different kinds of borrowing by the Government. The England to the Government, who draw upon it and pay Government may borrow from three sources. They may out the amount to contractors. In due course the conborrow from the public, they may borrow from the banks, tractors pay the money they have received into their or they may borrow—and I put this in a category by accounts with their own banks, and deposits are thereby itself—they may borrow from the Bank of England. If increased. The banks now hold more money, which in anything contributed to a national loan by the public were their turn they pay into their accounts at the Bank of saved by them from their ordinary expenditure there England, and so increase their cash balance. There was would be no increase in prices. The additional expendi- no previous withdrawal in this case from bank balances at ture of the Government would be counterbalanced by the the Bank of England and there is consequently an increase reduced expenditure of the community. in these balances exactly equal to the amount of the Bank Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MARCH, 1920. FEDERAL RESERVE BULLETIN. 251 of England's loan to the Government. Here we see both usual consequences followed. Prices began to rise rapidly. an increase in customers' deposits and an increase in the The rise in prices was next followed by general demands balances of the banks at the Bank of England. These for increased wages. As these now rose the cost of probalances are the basis upon which the banks found their duction rose too, and another turn was given to the screw advances, and an increase in them will necessarily be fol- on which prices were steadily mounting. But higher lowed by additional advances whether to their customers wages and higher prices mean a greater demand for or to the Government, with a consequent further increase currency. The weekly wages have got to be paid in in deposits. legal tender money. In the course of the week the bulk We conclude from this analysis, therefore, that loans by of the money paid out in wages comes back through the the Bank of England to the Government have a much shops to the banks, and is paid out by them again to meet greater effect in raising prices than any other form of Gov- the next week's requirements. But, as prices and wages ernment loan, as they not only immediately raise the total rise, not all of it comes back, and each week a larger amount of bank deposits and consequently of spending power by is retained in the pockets of the people, in the tills of shopthe public, but they also increase the power of the banks to keepers, and in the tills and reserves of the banks. make further advances, which in due course lead to still more deposits and still greater purchasing power. LIMITATION OF CURRENCY IMPOSSIBLE AT THIS TIME. We may stop here to ask, Is there any stage in this process SUPPLY AND DEMAND SINCE 1914. at which it would have been proper to limit the issue of Now that we have examined the different methods Of currency? The main demand for currency is to meet the Government borrowing and have considered the effect of weekly wages bill. If wages increase, whether because each in increasing bank deposits, it remains for us to look more workpeople are employed, or because rates are higher,' at the course of events as they have actually occurred since additional currency must be brought each week into circu- 1914 in forcing a rise in prices. At the outbreak of the war, lation. If the supply were cut off, a substitute would have throughout its course, and right down to the present to be found. At the outbreak of the war there was not moment, the Government have been large buyers of com- enough legal tender money to satisfy our additional remodities, greatly in excess of their normal demands. The quirements and at once postal orders and even postage first consequence of the immense Government purchases stamps were used to make good the deficiency. If men was to stimulate production. Machinery was used to its and women are to be employed and paid, means of paying full capacity; the number of people employed was greatly them must be found, and an arbitrary limitation of curincreased; women took the place of men, and there was a rency would merely inflict intolerable inconvenience upon very considerable addition to the total national output. the public. But enlarge the output as we would, it could not keep pace Although, as I venture to think, the increase in currency with the Nation's requirements. Demand outstripped is not the cause of high prices, yet I believe the public has supply, and just as it happens when a period of compara- shown a right instinct in fastening upon this increase as a tive trade depression is succeeded by a trade boom, there matter for anxiety and even alarm. Though not the rainwas a natural rise in prices. storm itself, it is the gauge which measures the rainfall. The figures are easily apprehended, and the weekly records DEMAND CAUSES MORE CURRENCY. can be readily followed. Those who study them with care At once more currency was needed, partly to pay the see that every advance by the Bank of England to the wages of the larger number of workpeople employed, Government is followed by a fresh issue of currency notes. partly because with higher prices shopkeepers keep more Once the nation can free itself from the need for these money in their tills. To the extent that more currency advances, the rise of prices, so far as it is due to an increased was issued the spending power of the community was demand, will cease, and the currency in circulation will increased. But up to this point the increase was not no longer expand. When the advances are paid off prices great. A new condition had to be introduced before any will tend to go down, and the currency in circulation will considerable rise could take place. There must be not diminish. merely an increase in currency, the total of which in any THE DROP IN PRICES. case only represents a small part of the public spending When we look to the future we naturally ask, shall we power; but, far more important, there must be a serious ever get back to pre-war prices and pre-war currency and addition to bank deposits. It was not long before this new bank deposits? If I might hazard an opinion, it would be condition arose. To meet the daily growing expenditure the Government had to borrow freely from the public, that prices will remain permanently on a far higher level from the banks, and from the Bank of England. It is than in 1914. The rise that has taken place is not local. unnecessary to recapitulate the effects of this borrowing. It is not even European or American. It covers the whole world. The cost of living in Japan has risen quite as much RESULT OF INCREASED BORROWINGS. as in this country. In India and China, where human Bank deposits increased enormously. There was no wants are much less than with us and where custom plays proportionate increase in the supply of goods and the a far stronger part in fixing prices, even there the cost of Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

252 FEDERAL RESERVE BULLETIN. MARCH, 1920. living is much above the pre-war standard. Increased pro- export to those foreign markets in which we have to meet duction will bring down prices to a certain extent, but the serious competition. But it is precisely these markets in purchasing power of the world measured in money can not which sales are for prompt payment. We can no doubt be materially diminished. Deflation is bound to be very sell all the goods we wish in countries in which sale is slow. Any attempt, indeed, to bring it about n pidly possible only on terms of very extended credit, but exwould cause widespread ruin among manufacturers and ports to such countries do no good to our exchange. Raising the cost of production at home in any degree has a traders. The greatest caution will be necessary m handtendency to drive our exports out of the cash markets into ling our financial machinery and many of our prewar ideas the credit markets, and to that extent our exchange is must be modified in view of the fundamental cnange in injured. our conditions. THE BANK RATE. DISADVANTAGES OF DEAR MONEY AT PRESENT. In illustration of what I mean, let us take the bank rate I can not help thinking that the advocates of dear and consider its operation to-day as compared with pre-war money are premature in their policy. They do not take times. In the conditions we then enjoyed raising the sufficiently into account the actual circumstances of the bank rate was an admirable means of checking excessive moment. They wish to stop the continual rise in prices borrowing, restoring our exchange, and restricting the with its concomitant social dangers, and rightly recogdemand for currency. To-day we can not be certain that nizing that the high prices are in a large measure due to it will achieve any of these purposes. It is conceivable, the immense increase in purchasing power consequent indeed, that it may have the opposite effect. upon the growth of bank credit, they hope to restrict The Government has been a heavy borrower, and still further bank advances by raising the bank rate. But they overlook the fact that much the greater part of the inflated may be, whatever the bank rate. Raising the rate decredit is due to borrowing by the Government. Bank preciates all existing Government securities, which makes advances to industry, though heavy in the aggregate, are it difficult to borrow from the public. As a result the not greater than industry requires having regard to the Government is driven to the Bank of England. We know amount of money sunk in the high-priced stock which a the consequences: The total of deposits and bank cash is trader has to carry. Dear money is an additional expense increased, prices go up, and the currency is further inflated. in production and has the effect in itself of raising prices, The purpose of raising the bank rate is to prevent borrowbut the counterbalancing influence which it might be exing by making it too expensive, and by this means to pected to exercise by the restriction of credit is neutralized restrict deposits and the issue of currency; but when the by the repeated outpourings of bank cash due to borrowing borrower is a Government which may have to borrow, no by the Government from the Bank of England. matter what the price, and which has the power to compel the Bank of England to lend, raising the rate not merely The only condition on which we shall be able to check fails to achieve its intended purpose but actually operates the rise in prices is that our annual expenditure is brought in the opposite way. Until the Government has ceased within the compass of our revenue. In State as in doto borrow, the bank rate can not have its normal effect. mestic finance we must learn to make both ends meet, and It must be observed, moreover, that these considerations the case is not in the least bettered if we only balance our apply with equal force when the borrowing by the Govern- accounts by selling out capital stock and placing the proment from the Bank of England is not to raise new money, ceeds to the credit of our revenue account. The expendibut to pay off maturing debt held by the public or the ture of the Government is tantamount to the consumption banks and not renewed by them. of the quantity of commodities which the money would buy, and this must not exceed the amount of commodities the consumption of which the community are compelled EFFECT OF RAISED BANK RATE|ON FOREIGN EXCHANGE. to deny themselves by reason of the taxes they have to Again, with regard to the exchanges, before the war, pay. If it does, we run the risk, as is indeed now the raising the bank rate was bound to send up the valuetof fact, that our consumption may exceed our production. the pound sterling in foreign exchange. The balance of This is not a plea for additional taxation. Far from it. Our trade, including invisible exports and imports, was in our existing taxation, which is, I believe, higher than in any favor, and if for the moment the poundfsterling had de- other country in the world, is already dangerously near preciated, it was only because we had lent too much money the point at which thrift, business enterprise, and needful abroad. Raising the bank rate made it unprofitable for capital development become seriously impaired. But it the foreigner to borrow in this market, and left our excess is a plea for economy in expenditure. It is a plea for such of exports free to assert its natural effect. To-day, the ruthless cutting down or postponement of all financial balance of trade is against us, and while the bank rate outlay by the State as will reduce our expenditure to a should be at such a level as not to encourage the discount- figure less than our tax revenue, for by this method alone ing of foreign trade bills in our market, to raise it above can we hope to restrict the issue of currency, check the this point may in existing circumstances injure rather than rise in prices, restore our foreign exchange, and reestablish benefit our exchange, for dear money adds to the cost London in her old position as the financial center and free of production and every addition to cost hampers our gold market of the world. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MARCH, 1920. FEDERAL RESERVE BUIJLETIK. 253 Currency Reform in India. situation as it existed before the war, the effect of the war upon the currency, and recommen- The committee on Indian exchange and cur- dations for the future. rency, appointed on May 30, 1919, to advise PREWAR CONDITIONS. with regard to a future policy for India, examining both the effect of the war on the situation Just before the war the Indian currency conthere and the policy which should be followed sisted of British gold coins, silver rupees, subin the future as regards the question of the sidiary coins of silver, nickel, and bronze, and monetary standard, has reported to the sec- currency notes. The British sovereign and retary of state for India, and, on February 2, half-sovereign were unlimited legal tender for 1920, the following announcement was made 15 and 7£ rupees, respectively. The currency by the India office: notes were in denominations of 5 rupees and upwards. India possessed a favorable trade balance which was adjusted partly by the im- INDIA COUNCIL DRAFTS AND IMPORT OF GOLD portation of the precious metals and partly by INTO INDIA. the sale of council drafts on the Government of India. The sale of these drafts had the effect "The acquisition rate for gold imported of releasing currency in India against the payunder license into India, which has hitherto ment of sterling in London. There was a standbeen subject to variation notified from time ing offer to sell bills without limit at Is. 4Jd. to time, has now, in accordance with the per rupee, a price which corresponded to the secretary of state for India's separate antheoretical gold export point. When the war nouncement relating to the recommendations broke out there was general dislocation of trade of the Indian currency committee, been fixed, and business, exchange grew weaker, and there and the following fixed rates will apply to was a run on Indian gold stocks. Savingstransactions on and after February 2, viz: bank deposits were withdrawn and there was "Rs. 10 for each sovereign tendered for some lack of confidence in the Indian note import, or issue. "Re. 1 for 11.30016 grains of fine gold. "Council drafts will continue to be offered WAR MEASURES AS TO MONEY AND EXCHANGE. at the secretary of state's discretion for weekly sale at the Bank of England by competitive The first of the innovations made in the pretender. The rate for deferred telegraphic war situation related to the control of exchange. transfers and bills will, until further notice After exchange had recovered from the temporank for allotment with tenders at Is. 16d. rary dislocation consequent upon the outbreak higher for immediate telegraphic transfers. of war, the demand for council drafts continued No announcement will be made of the mini- about normal until October, 1916. During mum rate at which tenders will be accepted, November the amount of the weekly sales inand the secretary of state in council reserves creased rapidly. In order to avoid drawing too the right of rejecting the whole or any part heavily upon the rupee holdings of the paper of any tender. In accordance with the com- currency reserve, council drafts were limited in mittee's recommendations the Government volume and the amount available was fixed of India will when occasion requires, offer for from time to time on a basis of the rupee resale stated weekly amounts of sterling reverse sources of the Government. This continued drafts on the secretary of state (including until the close of the war, but after September immediate telegraphic transfers). The rate 18, 1919, drafts were sold by open competitive for immediate telegraphic transfers on London tender subject to a minimum rate and subject will be announced on each occasion by the to the conditions that no applicant may apply Government of India and will be based on the for more than 20 per cent oi the total offered sterling equivalent of the price of 11.30016 each week. A second measure that was regrains of fine gold as measured by the pre- sorted to was the raising of the rate for the vailing sterling dollar exchange, less a deduc- sale of council drafts. This was not done to tion representing the charges of remitting reduce demand but because of the higher cost gold. The rate for deferred drafts on London of silver. A series of changes was made in will, until further notice, be Is. 16d. higher the rate of exchange, dating from August 28, than the immediate rate as at present." 1917, when the rate for immediate telegraphic The report of the commission may be sum- transfers was raised from Is. 4Jd. to Is. 5d. marized under three heads—relating to the Subsequent changes took place until the rate Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

254 FEDERAL RESERVE BULLETIN. MARCH, 1920. reached 2s. 4d. on December 12, 1919. The weekly by competitive tender in New York, secretary of state further announced that he and the proceeds were remitted to India in would sell reverse immediate telegraphic trans- gold. Toward the end of October the demand fers at the rate of 2s. 3 29/32d. in case of for these transfers fell off and the sales were demand. A third measure resorted to was discontinued. Arrangements had also been the purchase of silver. Special measures had made for the direct purchase of gold in Lonto be taken to increase the supply of the cur- don, the United States, and Australia, and by rency. November 30, 1919, about 2,485,000 fine In February, 1916, the necessity for rupee ounces had been purchased. On September coinage became so apparent that the secretary 15, 1919, the rate paid by the Indian Governof state began to purchase silver. In order to ment for gold was fixed so as to include the facilitate his operations, the importation of premium on gold over sterling as measured by silver into India on private account was pro- the dollar-sterling exchange, and has been vahibited September 3, 1917. Eventually, in ried from time to time accordingly. In order order to get more silver an arrangement was to make the gold thus obtained available for made with the United States Government, the public, the Government of India anwhich proceeded under authority of the act of nounced at the end of August, 1919, that sales April 23, 1918, the so-called Pittman Act, of gold would be held fortnightly until further authorizing the sale to other Governments of notice and that in each of the first three months silver to be obtained from the melting of not not less than the equivalent of the gold conexceeding 350,000,000 silver dollars. Of this tent of 1,000,000 sovereigns would be offered amount the Government of India acquired for sale. Up to November 30, 1919, the equiva- 200,000,000 fine ounces at 101J cents per fine lent of the gold content of 3,439,000 sovereigns ounce. In all, the total purchased from 1915 had been sold. to November 30, 1919, was 538,005,000 stand- In order to get an adequate circulating meard ounces. To conserve the silver which had dium, arrangements were early made to enlarge thus been acquired it was endeavored to pro- the fiduciary portion of the note issue. From tect the currency against depletion by export the beginning of November, 1915, onward, the or melting. Accordingly, from June 29, 1917, legal limit of the invested portion of the reserve the use of silver or gold for purposes other than fund was modified nine tunes, while the gross currency was made illegal and from September circulation of notes increased threefold and 3,1917, the export of silver coin and bullion was the percentage of metallic backing became reprohibited except under license. Small notes duced by one-half. The issue of small notes of of 2\ rupees and 1 rupee were also issued in 2£ rupees and 1 rupee also stimulated the use order to economize silver. Further, in view of of paper currency. In order to prevent undue the shortage of silver it was desired to make cashing of notes and prevent runs for redempthe Government stock of gold as large as tion possibly leading to inconvertibility, the fapossible. Accordingly, on June 29, 1917, all cilities for the cashing of the notes at district gold imported into India was required to be treasuries were largely withdrawn. The consold to the Government at a price which, being veyance of specie by rail and river steamer was based on the sterling exchange value of the prohibited, and an embargo was placed on its rupee, took no account of the premium in transmission by post. The result of these re- India on gold as compared with sterling. The strictions was the substitution of notes for gold thus obtained was placed in the paper- rupees as the common circulating medium. currency reserve as a backing against the issue During the war, moreover, ordinary expendiof additional notes. A premium on gold grad- ture and capital expenditure were kept as low ually made its appearance shortly after the as possible, while from 1916-17 onward addioutbreak of the war and precluded its use as tional taxation was imposed. There was also currency except in emergencies. extensive Indian government borrowing, and During the war the amount of gold which these measures continued to assist in meeting could be obtained by India was limited by the the heavy demand for Indian remittances. restrictions on its export from belligerent countries. The removal of the embargo on the export of gold by the United States on June 9, PROPOSED CHANGES. 1919, and the freeing of the market for South African and Australian gold made it possible The committee finds that the gold exchange to obtain a larger supply. From August 22, standard has worked well and was beneficial to 1919, onward a limited amount of immediate India, preventing the fall in the value of the telegraphic transfers on India were offered rupee below Is. 4d., but it finds that the system Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MARCH, 1920. FEDERAL RESERVE BULLETIN". 255 is not proof against a great rise in the value of at that the stable relation to be established silver. The present advance in silver has made should be with gold and not with sterling. it difficult or impossible to get the silver re- Such a conclusion is supported by the fact quired for Indian currency, and as a result the that great inconvenience is attached to a curconvertibility of the note issue has been en- rency which is already depreciated and may dangered. The committee recognizes that a depreciate still further. Tne need of stabilizstable level of exchange furnishes the most ing the rupee at an early date is urgent. The healthy condition for production and trade value which it would be necessary to fix in and tliat large changes in exchange are an sterling at the present time, in order that the evil. It further thinks that it may be prefer- rupee might have an exchange value exceeding able to establish stability at the new level of that of its silver content, would be a high one. exchange rather than to try to work back to If the relation of the rupee to sterling is fixed, the old level. As suggested modifications of while sterling varies in relation to gold, the gold the present system are listed the following: value of the rupee will also vary. Free move- (1) Issue of a new rupee with a lower silver ment of gold into and out of India is found very content than the present one. The evidence is desirable, but this can not be attained unless said to be against this plan. the rupee has a fixed relation to gold. (2) The issue of pieces of 2 or 3 rupees of In view of these factors definite recommendalower proportional silver content, these to tions as to the course to be pursued can be circulate side by side with the existing rupee made. issues, coinage of which would be temporarily (1) The first problem relates to the question suspended. This plan is said to be subject of remittances to and from India, and it is to many of the objections previously cited suggested that as long as existing difficulties with regard to (1). in India and England prevail, it will be advis- (3) Issuance of a nickel rupee. This is found able to adhere to the system at present in force objectionable on the same grounds as before. according to which the actual amounts of (4) Stabilization of exchange at a rate council drafts sold weekly are fixed with which would insure continuance of the rupee reference to the Secretary of State's requireas a token coin and creation of an inconvert- ments and the capacity of the Government ible paper currency, the Secretary of State of India to meet them. So long as sterling is being prepared to authorize the suspension of divorced from gold it is not possible to announce the purchase of silver, should an advance in a fixed rate for sales, but the Government of the price of silver continue. As to this the India should be prepared to quote the approcommittee holds that the maintenance of priate figure as soon as the demand for convertibility is vital. remittance from India is ascertained. With reference to the future price of silver, (2) It is believed that the gold import act the committee finds grave differences of opin- should be repealed as soon after a stable ratio ion. No positive conclusion can be safely for the rupee has been established, thus allowformed as to the maximum price. In conse- ing free import and export of gold. quence, it is believed that a high level of (3) The use of actual gold as currency and exchange will be essential for the establishment the furnishing of it by the Government of of a sound monetary system, although it India when demanded by the public should be recognizes that the acceptance of this view will restored. have certain important influences both on the (4) Facilities for minting sovereigns in India level of prices in India, on India's foreign and for refining gold should be provided, and trade, her industrial development, and other the holders of sovereigns and Indian gold coins important factors. The general conclusion, should be protected against changes in value. however, arrived at by the committee is that (5) The free movement of silver into and out material interests in India will not on the whole of India should be restored as soon as consuffer from the fixing of a high rate of exchange venient and the import duty on silver should for the rupee. This brings up the question be eliminated. However, with regard to the how the rate ol exchange should be fixed. export of silver, the prohibition should be main- The first question in relation to the fixing tained for the present, pending the time when of the rate of exchange is whether the rupee conditions are more stable, and meantime, in should be established in relation to gold or to the event that the purchase by the Governsterling, sterling being at the present time ment of silver minted in India becomes unseriously depreciated as compared with gold. necessary, producers should be allowed free As to this the unanimous conclusion is arrived license to export. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

256 FEDERAL, RESERVE BULLETIN. MARCH, 1920. (6) The custom of Indians in using coins for limit to rupees 5 or rupees 10 should be conhoarding should be gradually discouraged by sidered. an extension of banking facilities, so far as (3) The maintenance of the convertibility practicable, and better opportunities for the of the note issue is essential and proposals that investment of savings in Government loans do not adequately protect the. Inaian paper should be furnished. currency from the risk of becoming incon- (7) It is recommended that the constitution vertible can not be entertained. of the paper currency reserve which protects (4) The rise in exchange, in so far as it has the note issue of India should be altered, rec- checked and mitigated the rise in Indian prices, ognizing, however, the special need for caution has been to the advantage of the country as a in a country like India. The views of the whole, and it is desirable to secure the con- Chamberlain Commission (1913-14) on this tinuance of this benefit. subject are indorsed. That commission recom- (5) Indian trade is not likely to suffer any mended that the fiduciary portion of the paper permanent injury from the fixing of exchange currency reserve be increased and be for the at a high level. future fixed at a maximum of the amount of If, contrary to expectation, a great and notes held by the Government in the reserve rapid fall in world prices were to take place, treasuries, plus one-third of the net circulation and if the costs of production in India fail to outstanding. It is recommended that the adjust themselves with ecjual rapidity to the statutory minimum for the metallic portion of lower level of prices, then it might be necessary the reserve should be 40 per cent of the gross to consider the problem afresh. circulation, but it would be desirable to main- (6) The development of Indian industry tain as large a surplus margin in the metallic would not be seriously hampered by a high reserve as practicable. As to the fiduciary rate of exchange. portion of the reserve, it is recommended that (7) The gain to India of a high rate of exthe amount held in Indian Government securi- change for meeting the home charges is an ties be limited to the present maximum under incidental advantage that must be taken into the temporary legislation, the balance being consideration. held in securities of other governments com- (8) To postpone fixing a stable rate of exprised within the British Empire. It is noted change would be open to serious criticism and that the change in the gold equivalent of the entail prolongation of Government control. rupee would involve the revaluation downward (9) The balance of advantage is decidedly of the sterling investments and gold now held on the side of fixing the exchange value of the in the reserve. rupee in terms of gold rather than in terms of (8) The location of the paper currency sterling. reserve should for the greater part be in India (10) The stable relation to be established where the notes have to be met, although a between the rupee and gold should be at the part of the securities held in the reserve might rate of rupees 10 to one sovereign, or, in other be kept in Great Britain. words, at the rate of one rupee for 11.30016 grains of fine gold, both for foreign exchange and for internal circulation. SUMMARY OF CONCLUSIONS. (11) If silver rises for more than a brief The commission in closing its lengthy and period above the parity of 2s. (gold), the situaexhaustive report summarizes the main con- tion should be met by all other available means clusions at which it has arrived, and the prin- rather than by impairing the convertibility of cipal of which have already been set forth in the note issue. Such measures might be (a) the foregoing pages, as follows: reduction of sale of council bills; (b) abstention (1) It is desirable to restore stability to the from purchase of silver; (c) use of gold to meet rupee and to reestablish the automatic working demands for metallic currency. If it should be of the Indian currency system. absolutely necessary to purchase silver, the (2) The reduction of the fineness or weight Government should be prepared to purchase of the rupee, the issue of 2 or 3 rupee coins of even at a price such that rupees would be lower proportional silver content than the coined at a loss. present rupee, or the issue of a nickel rupee, (12) Council drafts are primarily sold not for are expedients that can not be recommended. the convenience of trade but to provide for the If the legal tender limit of one rupee for the home charges in the widest sense of the term. 8-anna nickel coin should prove an obstacle to There is no obligation to sell drafts to meet all its free circulation, the question of raising the trade demands; but if, without inconvenience Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MARCH, 1920. FEDERAL RESERVE BULLETIN. 257 or with advantage, the secretary of state is Similar opportunities should be given to in a position to sell drafts in excess of his holders of the gold mohur, which should immediate needs, when a trade demand for eventually be demonetized. them exists, there is no objection to his doing (20) The prohibition on the import of silver so, subject to due regard being paid to the should be removed as soon as is convenient. principles governing the location of the reserves. (21) When the prohibition on the import of Council drafts should be sold as now by silver is removed, the import duty should also open tender at competitive rates, a minimum be removed, unless the fiscal position demands rate being fixed from time to time on the basis its retention. of the sterling cost of shipping gold to India. (22) The prohibition on the export of silver At present this rate will vary; but when sterling should be retained for -the present with a view is again equivalent to gold it will remain to the protection of the silver currency from uniform. depletion by export. (13) The Government of India should be If the silver mined in India should cease to authorized to announce, without previous ref- be purchased by the Government, its export erence to the secretary of state on each occa- should be permitted under license. sion, their readiness to sell weekly a stated (23) Improved banking facilities and inamount of reverse councils (including tele- creased opportunities for the investment of graphic transfers) during periods of exchange savings should be afforded. weakness at a price based on the cost of ship- (24) No recommendation is made for modiping gold from India to the United Kingdom. fying the present practice regulating the pur- (14) The quantity of gold taken by India chase of silver for coinage. for all purposes in the period before the war (25) The statutory minimum for the metallic was not disproportionately large haying regard portion of the paper currency reserve should to her social customs and economic position; be 40 per cent of the gross circulation. but more productive methods for employing As regards the fiduciary portion of the rewealth should be encouraged. serve, the holding of securities issued by the (15) The import and export of gold to and Government of India should be limited to 20 from India should be free from Government crores (200 millions). The balance should be control. held in securities of other Governments com- (16) The Government should continue to prised within the British Empire, and of the aim at giving the people the form of currency amount so held not more than 10 crores (100 which they demand, whether rupees, notes, millions) should have more than one year's or gold; but gold can be employed to the best maturity, and all should be redeemable at a advantage in the Government reserves, where fixed date. The balance of the invested porit is available for meeting the demand for tion above these 30 crores (300 millions) should foreign remittance. be held in short-dated securities, with not It would not be to India's advantage more than one year's maturity, issued by actively to encourage the increased use of Governments within the British Empire. gold in the internal circulation, but it may for The existing permissive maximum of 120 some time be difficult to meet all demands for crores (1,200 millions) should be retained for metallic currency in rupees, and a more ex- a limited period. tensive use of gold may be necessary. In The sterling investments and gold in the order that confidence may not be disturbed by paper currency reserve should be revalued at exceptional issues, the issue of gold coin in mod- 2s. to the rupee. The depreciation which will erate quantities should be one of the normal result from this revaluation can not be made methods of meeting demands for currency. good at once, but any savings resulting from (17) The Bombay branch of the royal mint the rise in exchange wM afford a suitable should be reopened for the coinage of sover- means for discharging this liability in a limited eigns and half sovereigns, and facilities should number of years. be afforded to the public for the coinage of (26) With a view to meeting the seasonal gold bullion and for the refining of gold. demand for additional currency, provision (18) The obligation of the Government to should be made for the issue of notes up to 5 give rupees for sovereigns should be with- crores (50 millions) over and above the normal drawn. fiduciary issue as loans to the presidency banks (19) Opportunities should be afforded to the on the security of export bills of exchange. public to exchange sovereigns in their posses- (27) The silver and gold in the paper cursion at the rate of 15 rupees per sovereign-at rency reserve should be held in India except the time of the introduction of the new ratio. for transitory purposes. 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258 FEDERAL RESERVE BULLETIN". MARCH, 1920. (28) As soon as circumstances permit, free In many cases the practice is to draw upon facilities for the encashment of notes should the distributor, who in turn draws upon the be given, and the restrictions imposed during dealer, but in the case of financially strong the war should be withdrawn. The Govern- dealers the manufacturer draws direct upon ment should have the option of redeeming its the latter. In general a cash deposit is renotes in full legal tender gold or silver coin. quired, either repayable at the expiration of (29) No limit can yet be fixed to the amount the contract between manufacturer and disup to which the gold standard reserve tributor or applicable in specified amounts should be accumulated and when profits again toward the purchase price of each car or accrue on the coinage of rupees they should be truck. While sometimes a flat amount is credited in their entirety to the reserve. stipulated, this is generally calculated roughly (30) Under present conditions Government at so much per car contracted for, but the should hold such gold as they obtain in the amounts vary considerably, according to the paper currency reserve rather than in the gold manufacturer. Distributors in turn largely standard reserve. The gold standard reserve require deposits from dealers in their territory; should when practicable contain a considerable in general the manufacturer is not a party to proportion of gold; but the most satisfactory the arrangement, but in one instance at least course at present lies in keeping the reserve as the distributor is required to forward to the liquid as possible by the holding of securities manufacturer all deposits taken from dealers. with early dates of maturity. In order to assist distributors and dealers The amount of securities in the reserve with in purchasing their passenger cars during the a maturity exceeding three years should not winter months, several plans have been debe increased, and the aim should be to hold vised by some of the larger manufacturers in all the invested portion of the reserve in connection with carload shipments. A cash securities issued by Governments within the payment per car is required, also certain ad- British Empire (other than the Government of ditional payments for miscellaneous expenses. India) and having a fixed date of maturity of To the draft and bill of lading is attached a not more than 12 months. separate trust receipt and note for each car. (31) A portion of the gold in the gold stand- The draft is drawn on the dealer direct in case ard reserve, not exceeding one-half, should be of direct shipment to him. Notes are interest held in India; the sterling investments should bearing and mature in from five to three continue to be held in London. months, a graded scale according to date of shipment being arranged, the earlier shipments carrying more time. Maturities range from April to June. Payment is required before the TERMS OF SALE. machine is disposed of. This plan calls for placing the car on the distributor's or dealer's The following is the third of a series of articles floor. Instead, it may be placed in waregiving data as to current practice and recent house, in which event no trust receipt is used, history of terms of sale in the principal in- but instead, a warehouse receipt is attached to dustries. Acknowledgment is due various the note representing the machine in quesbranches of the Government and the many tion. The great majority of manufacturers, business houses, individuals, trade periodicals, however, extend no assistance to the distributor and trade associations who have courteously and dealer, but leave the latter to obtain acfurnished the information. commodation from his bank or from one of the finance companies which have specialized AUTOMOBILES. in this field. Distributors in certain cases have devised more or less similar plans for Passenger automobiles and trucks are ordi- financing dealers, both in connection with narily distributed by manufacturers through sales of passenger cars and of trucks. branch houses or distributors, who control Distributors and dealers in certain cases sell a specified territory, and make arrangements a considerable number of passenger cars on with dealers in that territory, but who also time, the partial payment plan being employed. retail cars locally. While certain makers of higher priced cars re- The manufacturer receives cash payment, port little use of such terms in connection with usually through use of a sight draft with bill their product, some makers of popular-priced of lading attached in the case of shipments, cars estimate that over one-half of their or payment before the car is driven away. product is sold on time. The size of the initial Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MARCH, 1920. FEDERAL, RESERVE BULLETIN. 259 cash payment to the distributor or dealer will be for a longer period in the latter two varies, being stated variously as generally 25, territories. 33 J, and 50 per cent. The balance is paid in One of the leading companies has created a monthly installments, the maximum time limit special corporation to assist in financing disbeing given as 7 to 12 months. Security is tributors and dealers. Three plans have been afforded by the use of chattel mortgage, con- devised, two in connection with wholesale and ditional sale, or lease agreement. In one-crop one in connection with retail sales. The plans agricultural sections, such as the Northwest and are substantially similar to those indicated South, it is stated that the farmer's note is at above, with the exception that the corporation times taken for the entire purchase price of finances the sales, instead of leaving the purthe car, being made payable at the time of chaser and seller to make their own arrangemarketing the crop. ments. In the case of sales by producing com- While cash payment to the manufacturer is panies to distributors and direct dealers, notes practically universal in the case of passenger are given by the latter to the corporation, macars, a certain proportion of trucks are sold on turing in not over six months in the case of time by manufacturers. This is by no means both passenger cars and trucks. The time the case with all manufacturers, however, as a varies according to the season and the terriconsiderable number require cash payment. tory. Where a trust receipt, covering the cars When sales are made on time an initial cash in question, is used, and cars are stored on the payment of 25 to 33J per cent is generally distributor's floor, a cash payment of at least specified, the balance being payable in general 15 per cent is required; in the case of the warein 12 equal monthly payments, although one house plan, at least 10 per cent, a sight draft maker has in addition a plan calling for 4 and being drawn for this amount. " Drive-away " another for 18 payments, another specifies in- shipments, to be stored on the distributor's stead 7 payments, and another 4 payments, floor, likewise require 15 per cent. In the case the last of which is due in five months. Secur- of sales by distributor or direct dealer to subity is afforded by the use of chattel mortgage, dealer, a trade acceptance is used, the distribuconditional sale, or lease agreement. In prac- tor drawing on the subdealer and indorsing the tical operation, plans such as these will ap- acceptance to the order of the corporation, proximate those indicated in connection with which again pays the distributor or direct winter purchases of passenger cars, the manu- dealer in cash. Maturity, margins, and other facturer drawing on the purchaser, releasing details are the same, the option being given of the truck under trust receipt (inasmuch as it either floor or warehouse storage or drive-away is placed on the floor, and not in warehouse), shipments. From the dealer's point of view, and receiving the series of notes, in place of the use of either of the wholesale plans instead the one note. Trade acceptances are used in of the retail plan to be described depends upon certain cases in place of notes. One manufac- the season of the year, the retail plan, for exturer gives a discount of 3 per cent for payment ample, being more largely used in summer, on delivery, instead of making notes interest- when the dealer does not find it necessary to bearing. One maker of electric trucks sells on place cars in storage. In the case of retail terms of net 30 days, and bills the trucks direct sales, the purchaser gives the dealer an interestto the large manufacturing companies to which bearing note for the amount, which calls for they are mostly sold. regular monthly payments, the time not ex- Trucks are more largely sold on time by dis- ceeding 10 months in the case of passenger cars tributors and dealers than are passenger cars. and 12 months in the case of trucks. The Estimates in general agree that 70 per cent minimum initial payment is fixed at 30 per is so sold. The initial cash payment to the cent, and security is afforded in the usual mandistributor or dealer is usually 25 or sometimes ner, by chattel mortgage, conditional sale, or 33J per cent, and the balance is generally lease agreement, according to the law of the divided into 12 equal monthly payments. The particular State in which the sale is made. The period, however, may vary from 90 days to 18 dealer indorses this note, ordering payment to months. Interest-bearing notes are used. Se- be made to the corporation. The details of the curity is afforded by the same three devices plan vary according to the individual case. indicated above in connection with passenger Thus the size of the initial payment depends cars. It is stated that there is a larger pro- both upon the number of payments specified portion of cash sales in the East than in the and their frequency. Depreciation on the car Middle West or on the Pacific coast, and that is estimated and the user's equity considered. the duration of notes covering a sale in general In case only several payments are made, at Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

260 FEDERAL RESERVE BULLETIN. MARCH, 1920. intervals of several months, the initial amount practice has been almost entirely eliminated. would be larger than if monthly payments were The larger retailers located usually in the specified. Farmers alone are permitted to larger cities also sell to some extent to small make an initial payment of not less than 40 dealers in neighboring towns. Retailers or per cent, with payment of one-half the remain- dealers may be either specialized or handle der at the close of four months, and the final also other lines, such as hardware, or conduct payment at the close of eight months, or with garages or vulcanizing shops. Solid tires are the deferred balance payable in three equal in- sold to some extent direct to the consumer by stallments at intervals of three months. An the manufacturer. alternate plan is also provided whereby the The regular manufacturers' terms on tires farmer may make instead an initial payment are 5 per cent 10th proximo. In certain cases of at least 50 per cent and pay the balance in net terms are 30 days, although frequently no one payment within seven months. The cornet terms are specified. One of the larger poration resells directly to banks and investors manufacturers extends net terms only to autonotes and acceptances arising from transactions mobile manufacturers. On Pacific coast shipunder either of the wholesale plans, and colments some manufacturers give 5 per cent lateral gold notes are issued against obligations 10th proximo of the second month on direct arising from sales under the retail plan, and at shipments to the dealer, which terms also times against notes and acceptances. obtain in some cases in other territories Repair parts are generally sold by manufac- where the distance to the branch or disturers on monthly settlement, due dates rang- tributing point is great. Estimates of leading ing from the 10th to the 20th, and no cash dis- companies agree that from 75 to 85 per count is allowed. In certain cases net 30 days cent of the accounts are paid by the 10th is given, in one instance with a cash discount proximo, though this figure, of course, varies of 2 per cent for payment within 10 days. with the several manufacturers. Some com- Cash on delivery is also specified in certain panies place the percentage of discounters as cases. nigh as 96, while one company estimates that 95 per cent of jobbers and 65 per cent of dealers RUBBER GOODS. discount. In general no marked difference is Among the various classes of rubber goods, reported in promptness with which collections automobile tires and tubes are by far the most are made from the different types of purchaser, important. Aside from sales to automobile although several manufacturers refer to the manufacturers, these are largely sold by the small garage dealer either as slowest pay or as manufacturers, the larger of whom have branch presenting the greatest credit risk. One of the houses located in important centers, direct to larger companies, although it has not analyzed the retailer or dealer. The proportion so sold its accounts, judges that the strictly automovaries, of course, with the individual manu- bile accessory house should be the best disfacturer. Some in fact sell through jobbers counter, as its stock moves more quickly and only, and others largely through jobbers, but a larger turnover of capital is obtained, while on the other hand the majority estimate that another states that the general merchandise from two-thirds to three-fourths of the output jobber pays most promptly. It may be stated is sold direct to dealers. It should be noted in this connection that the larger manufacturers that under the head of jobbers are included, have an elaborate system of reports from in addition to special automobile accessory and branches to show the status of collections, hardware jobbers, also mercantile houses, including' in one manner or another the prowholesale grocers, farm implement wholesalers, portion of accounts not discounted, those one etc. Certain manufacturers place the propor- month and two months old, etc. In recent tion handled by hardware jobbers at not over years a dating for tires shipped during the 25 per cent of the output passing through the winter months, namely, from November 1, hands of jobbers, although in the case oi some December 1, or January 1 to March 1 or April manufacturers as manv as 65 per cent of their 1, or in one case from September 1 to January jobbers are hardware jobbers. Jobbers have 1, has been introduced. This varies somecomplained for several years of a lack of profit what with the individual manufacturer, and in the distribution of tires. In 1916 objection the same manufacturer may vary his terms was raised to the practice among manufacturers from year to year, both as to period of shipping of consigning tires to retailers, which was stated and dates of payment. April 1 (and thus due to be prevalent, but present advices are that the date of May 10th) is most common, although Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MAKCH, 1920. FEDERAL. RESERVE BULLETIN". 261 due date of April 10 is sometimes specified. 1, bear a spring dating of May 1 or in some The three-payment plan is used in certain cases April 1. Fire hose, which is sold largely cases, one-third of February shipments, for to municipalities, bears terms of net 4 months, example, being due March 10, one-third April or net 12 months, interest being added at the 10, and one-third May 10, and at times the rate of 6 per cent per annum in the latter case due dates for shipments during these months for the additional time taken. Insulated wire are April 10, May 10, and June 10 or May 10, is sold on terms of 1 per cent 10 days, net 30 June 10, and July 10. Some manufacturers days. Druggists' sundries bear terms of 2 per permit the buyer at his option to pay on either cent 10 days, net 60 days, no special dating single or three-payment plan. Anticipation is being given. Rubber footwear datings differ. permitted, in certain cases at the rate of 1 per April 1 to November 1 shipments are due cent per month, in others at the rate of 6 or 8 December 15 net. November and December per cent per annum. An increasing use of the " fill-in" shipments in one case carry terms of trade acceptance is indicated, in particular, net 30 days; in another due dates of January in connection with shipments bearing the 15 and February 15. The manufacturer spring due date. One manufacturer allows a employing the former terms provides that discount of 2 per cent for a 30-day acceptance January 1 to April 1 shipments are due net dated 10th proximo and 1 per cent for a 60- May 1. Shipments of tennis shoes, etc., from day acceptance, while another states that most January 1 to May 31 are due net July 1, and distributors who are granted second 10th shipments during all other months are due proximo terms give a 30-day acceptance on the net on the 15th of the second month following. 10th proximo. Bicycle tires, during the winter Soles and heels carry terms of 2 per cent lOrn months, carry a dating somewhat similar to proximo, or 5 per cent 10th proximo. Rubber automobile tires. In the case of consignments, clothing carries a discount of 2 per cent. a special contract is drawn up and an inventory January to March shipments are due April 10. of the consigned stock taken on the first of each April and May shipments are due May 10 and month. The dealer pays for the tires which June 10, respectively, while shipments from have been sold during the month, in some June to September, inclusive, are due October cases making weekly reports of sales. While 10 and shipments in the three following months certain manufacturers note a tendency to have due dates of November 10, December 10, shorten terms, or rather to make prompter and January 10, respectively. All datings are collections, during the past decade, others subject to anticipation, although the rate may report no change in this regard. vary according to the product in question. Thus 12 per cent may be specified in the case While a considerable number of companies of footwear and only 6 per cent in the case of confine their activities entirely to the manuclothing. On all these products proximo terms facture of tires, others make to a greater or are employed to some extent in addition to the lesser extent the various other classes of rubber cases mentioned. As would be expected, the goods. It is stated to be the tendency for the percentage of discounters on mechanical goods, larger companies to enlarge their products druggists' sundries, and insulated wire is beyond tires and tubes, although some comstated to be considerably less than on tires. panies have commenced with other lines. One manufacturer states that buyers of me- The large companies manufacture practically chanical goods in general do not discount, as all lines. Certain of these products, such as the average purchase is small and the discount druggists' sundries and mechanical goods, will not large enough to be an incentive. More be distributed largely through jobbers, although than half of footwear customers are reported one large manufacturer sells only 30 per cent to anticipate. of his output of mechanical goods to jobbers, as against 70 per cent to consumers. On the other hand, rubber footwear is sold in large AUTOMOBILE ACCESSORIES. part direct to retailers. Mechanical goods as a whole are largely sold on terms of 2 per cent At the present time there is little uniformity 10 days, net 30 days, or net 60 days. Occa- in marketing methods, and the latter are in a sionally large accounts receive 2 per cent state of change, due both to the rapid growth second 10th proximo, with no net terms. of the industry, to the variety of products Jobbers of thresher belts in some cases receive included under this head, and to the large a dating, May shipments bearing a 2 per cent number of manufacturers. A larger propordiscount if paid November 10. Shipments of tion of sales are made by manufacturers direct garden hose from about November 1 to April to retailers than is usual in other lines, although Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

262 FEDERAL RESERVE BULLETIN". MARCH, 1920. the proportion varies greatly for the different In addition, the specialty retailers have a products. If figures are to be given, it may be tremendous overhead, business being very, said that 10 per cent of the output of manufac- though increasingly less, slack in the winter turers of automobile accessories goes to manu- months, and for this reason manufacturers of facturers of automobiles, 25 per cent to jobbers, accessories have been anxious that the retailers .and 65 per cent to dealers. of hardware should handle accessories. The Terms of sale of manufacturers in general are garage man will naturally be the largest buyer 2 per cent 10 days, net 30 days, to both whole- of products which require installing, while the salers and retailers. Proximo terms, usually specialty retailer and hardware retailer will the 10th but in some instances the 15th or 20th, carry the balance. In 1915 it was estimated are permitted in certain cases to the larger that about 25 per cent of the automobile purchasers, such as automobile manufacturers accessories went through the regular hardand those having a number of shipments ware market. The retailer of hardware and during the month. In this connection, some the garage and car dealer do most of the accesmanufacturers discriminate between small and sory business in the South and West, while in large purchasers, giving the former 2 per cent the East a large proportion of it is done by the 10th proximo and the latter 2 per cent 25th specialty retauers. proximo, often requiring a contract in such Terms of specialized accessory jobbers in cases. Some manufacturers allow or request general are the same as manufacturers' terms. their customers to use a 30, 60, or even 90 While they themselves in large measure take day trade acceptance with varying or no dis- the discount, their customers take the net 30count. On lines other than tires, dating is not day terms, although terms to garage men are a general practice, but some manufacturers often C. O. D. Hardware jobbers, however, give datings on large orders, often requiring in general apply the regular hardware terms a long-run trade acceptance to accompany this. of 2 per cent 10 days, net 60 days, also to the The exceptions to the regular terms which automobile accessories they handle, other than are found are not as a rule confined to par- tires, for which jobbers' terms are almost ticular products which become conspicuous as universally the same as those of the manubearing other than the regular terms. Rims, facturers. Proximo terms are employed in however, bear the same terms as do tires, being some cases. Some business is done on a 30quoted 5 per cent 10th proximo by the manu- day trade acceptance basis without interest. facturer and 5 per cent 10 days, net 30 days, The only exception to the general terms is by jobbers. Automobile upholstery and found in the case of heavier shop equipment leather goods are generally sold on terms of to garage men where sale is made on contract 2 per cent 10 days, net 60 days, net terms of covered by deed or title, notes being taken and 30 days being the exception. Little uniformity equal payments over 6 to 8 months specified. of terms on bearings is noted, both net 30 days, An alternative method where less time is and 5 per cent 10 days, net 30 days, being noted required is to use the trade acceptance, splitin addition to the regular accessory terms of 2 ting the payment by taking acceptances for per cent 10 days, net 30 days. Automobile 30, 60, and 90 days. bodies are sold on a contract basis, 25 per cent cash with order and balance sight draft bill of ELECTRICAL PRODUCTS. lading attached being, for example, specified. Jobbers of automobile accessories are of Considerable variety is found both in terms several types. Distinction is made between of sale and in marketing methods of electrical legitimate jobbers and semijobbers, the latter products. Net terms granted by manufacof whom are not financially able to take their turers are either 30 days or 60 days, while the discount, and who do some retail selling. Devel- discounts for cash vary on different articles, opment during the past few years has been at the two extremes being articles bearing no twofold; in the first place, a class of accessory discount and those on which 5 per cent is jobbers has become segregated from allied lines given. Proximo terms are given in certain and has specialized in the field with increasing cases. On the average, on commodities financial strength; on the other hand, an in- handled through jobbers, terms are 2 per cent creasing interest has been shown by the hard- 10 days, net 60 days, to jobbers and retailers ware jobber in the automobile accessory busi- and 2 per cent 10 days, net 30 days, to conness. Retailers are of three types—specialty sumers. Very large orders and orders of bulky dealers, garage men, and hardware retailers. apparatus, whether or not handled through The former two as a rule are poor credit risks. middlemen, are sold largely on a contract Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MARCH, 1920. FEDERAL RESERVE BULLETIN". 263 basis. Datings are rare, but in certain cases cent of their product to consumers, who in provision may be made for a series of trade ac- this case are the central stations, and the ceptances, each for one-third the amount, and latter do some reselling. Fifty to 75 per cent maturing in 30, 60, and 90 days, respectively. is sold to jobbers, who in turn sell one-half Turning to marketing methods, it is esti- their products to consumers and one-half to mated that in general 65 per cent of the out- retailers. It is to be noted that the jobber put of manufacturers is sold to jobbers, 25 sells to a different type of consumer than does per cent to dealers, and 10 per cent to con- the retailer. sumers, and about 75 per cent of the jobbers' The bulk of switchboards, especially the sales are to dealers as against 25 per cent to larger units, are sold directly by manufacturers consumers. There are many small manufac- to consumers, who in this case are central staturers who sell directly to the consumer. Dis- tions, and large industrials (possibly 2 per cent tributive methods vary greatly with the in- of the manufacturer's output being sold to dividual products. Considering wires and jobbers) and 5 per cent to retailers, who resell cables, 50 per cent of the output of electrical to industrials only. Telephones and telegraphs iron wire is sold direct from the manufacturer are sold direct by the manufacturers to conto the consumer and 50 per cent through the sumers. jobbers, the article never being sold by re- Eighty per cent of the output of insulating tailers. Consumers are principally railroads material is sold by the manufacturer to the and telephone companies. Seventy-five per consumer, only 20 per cent being sold to jobbers cent of weatherproof wire is sold by manufac- and none to retailers. turers to consumers, who are central stations Large transformers are sold direct by the and street railways, and 25 per cent goes to manufacturer to the consumer. The smaller jobbers, who sell to the same trade. The transformers are rarely sold direct to retailers, article is never sold to retailers. Rubber and only from 10 to 30 per cent of the output is covered wire is used in building. Twenty per sold to jobbers. Central stations selling power cent goes direct from the manufacturer to the do not supply their customers with transconsumer, 20 per cent to the contractors, and formers; these buyers, therefore, buy from 60 per cent to the jobber. The contractors, contract dealers. who are in this case the retailers, in turn buy Manufacturers of electrical measuring instru- 80 per cent of their rubber-covered wire from ments sell 5 per cent of their product to jobthe jobbers, getting the remainder of their bers, from 5 to 20 per cent to retailers, and from supply from the manufacturers. Electrical 75 to 90 per cent to consumers, who are lighting wiring devices in general are largely sold to stations, street railways, and automobile manujobbers, who in turn dispose of half of their facturers. The bulk of the electrical measuring product to retailers, who in this case are the instruments going to the first two classes are contractors, and the other half to consumers, sold with switchboards. Automobile manufacin the form of central stations, large indus- turers are buyers of 50 per cent of the electrical trials, etc. This distribution will vary for measuring instruments figured in numbers and individual products, such as fuses and switches, 10 per cent, if figured according to price. The of the output of which manufacturers sell electrical measuring instruments handled by 70 per cent to jobbers, 10 per cent to retailers, retailers will be for replacement purposes on and 20 per cent to consumers. Approximately automobiles only. half the retailers of such products handle also Thirty to 60 per cent of the output of storage lines other than electrical supplies. batteries is sold by manufacturers to manufac- Lighting fixtures are becoming more stand- turers of automobiles, 20 per cent to jobbers, ardized. In the past there were few jobbers, and 30 per cent to retailers, which 30 per cent the product in this line going formerly direct is used by the consumer, the automobile owner, from manufacturers to the contractors, due to for replacement purposes only. Twenty-five the fact that there was such a variety of per cent of the total output of storage batteries models. The jobber is now becoming a factor, is sold to central stations, and 15 per cent to so that at present from 20 to 40 per cent of the manufacturers of electrical trucks. Dry-cell manufacturer's sales are to the jobber, an equal batteries are sold practically exclusively by volume to the retailer, and 40 per cent to the manufacturers to jobbers, who in turn sell half consumer. Approximately 70 per cent of the to dealers and half to consumers. retailers of these products handle also lines Manufacturers of ignition equipment sell 90 other than electrical supplies. Manufacturers per cent of their product to manufacturers of of incandescent lamps sell upward of 25 per automobiles, trucks, motorcycles, stationary Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

264 FEDERAL RESERVE BULLETIN. MABCH, 1920. engines, etc., and about [8 per cent to the cash discount allowed. These discounts jobbers. are quoted both by manufacturers and by Large motors and generators are sold direct jobbers to all their customers. by manufacturers to consumers. There is 1. No cash discount, net 30 days. generally but one middleman engaged in the Telephone lead covered cable. distribution of the smaller motor types (under Poles. 250 horsepower); up to 10 per cent is sold to Power motors and fans. Transformers. jobbers (who if they do handle them, act as the Railway supplies. retailer); up to 18 per cent is sold to retailers, Telephone apparatus. and the balance to the consumer. About 70 Testing instruments. per cent of the sales of motors under 50 horse- Meters. High-tension insulators. power to consumers are handled through dealers Washing machines. acting as agents of the manufacturer. Sewing machines. Rotary converters are sold direct by the Vacuum cleaners. manufacturer to the consumer. Rectifiers are Dishwashers. Arc lamps. almost exclusively sold to jobbers, who in turn 2. One-half per cent, 10 days. dispose of half their product to retailers and Annunciator wire. half to consumers. Bare copper wire. Electrical appliances are never sold direct to Magnet wire. Damp-proof office wire. the consumer, all of them sooner or later going Weatherproof wire. through the retailer. Central stations still do, 3. One per cent, 10 days. though to an increasingly smaller extent, a very- Cross arms. considerable retail business in their appliances. Lamp cord. Rubber covered wire. From 60 to 80 per cent of these products are Lead covered wire. first sold by manufacturers to jobbers. Line hardware. Turning now to the terms of sale of the indi- 4. Two per cent, 10 days. vidual products, jobbers in general give to their Heating material. Condulets. customers the same cash discounts as they Dry batteries. receive from the manufacturers, but they may Storage batteries. vary the net terms. The jobbers' regular net General supplies. terms are 30 days, while he may be quoted net Porcelain (except high tension). Sockets and receptacles. 60 days, net 30 days, or no net from the manu- Snap and push switches. facturer. At the present time manufacturers Klaxon horns. are having considerable difficulty in keeping Hughes ranges. jobbers supplied, and consequently have con- Ironing machines. siderable power in making their own terms, Incandescent lamps. 5. Five per cent, 10 days. while, on the other hand, competition among Condulet outlet boxes and covers. jobbers still remains keen enough to make Flexible metallic conduit conductors and fittings. them inclined to give concessions to their cus- Rigid iron conduit. tomers. It is understood that these customers Certain variations from these cash discounts in many cases run beyond the nominal net exist. Manufacturers' sales of small transperiod. Offsetting the strategic position of the formers and small motors sometimes carry manufacturer is the rapid growth of the indus- 2 per cent, while very large jobbers of motors try and the greater number of specialty devices at times receive 5 per cent discount for paythan in older lines, which make the service of ment within 10 days. In the special cases of the jobber not only of greater value but selling motors through the manufacturer's peculiarly essential to the successful introduc- own agent, the following terms obtain: 5 per tion of these products. In the jobbing of spe- cent 60 days if the agent's credit is undisputed cialties it is stated that the jobber has been or 5 per cent 30 days, net 60 days, if his credit particularly favored due to the absence of standing is uncertain. Some electrical measurreputable retail dealers, and the result has ing instrument manufacturers quote 2 per cent been that the jobber, receiving regular jobbing 10 days, and some incandescent lamp manuprice quotations, has done the retailing himself. facturers quote 1 per cent discount for cash However, this practice is on the decline due to on delivery. In addition, net terms only are the development of a class of reputable retail sometimes given on rectifiers, insulating madealers. terial, and ignition equipment. The last named The products of the industry may be classi- in certain cases also bears 1 per cent 10 days, fied into the following five groups, according to and two to three years ago 2 per cent was given Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MARCH, 1920. FEDERAL RESERVE BULLETIN. 265 on sales by certain manufacturers. Porcelain fan motors sell their product on this basis. material about two years ago carried a discount Some manufacturers grant 10th proximo terms of 5 per cent 10 days. to approved customers or to those settling Turning to the net terms of the manufac- regularly on a monthly basis. In certain cases turers to jobbers^ retailers, and consumers, semimonthly settlement, for example, on the respectively, which, as has been pointed out, 10th and 25th, is provided. On large orders are in general net 60 days, net 60 days, and of electrical wiring devices the standard connet 30 days. There are some regular devia- tract terms are one-third on delivery, onetions. Electrical wiring devices (including third in 30 days, and one-third in 60 days. switches, fuses, wall switches, sockets, plugs, The regular net terms of jobbers are 30 days, etc.), batteries (storage and dry), small motors, while the discounts granted are those already and electrical appliances, all of which are not indicated. Interest is generally at the rate of sold directly to consumers, are regularly 6 per cent after the due date is passed, and quoted net 60 days to jobbers and net 30 days overdue bills are subject to sight draft without to retailers. notice. The trade acceptance is used more The following exceptions to the regular net by jobbers in this line tnan by manufacturers terms were noted: Some manufacturers of and as a matter of fact is quite generally used. rubber-covered wire quote net 30 days to all Thirty-day acceptances are most common, three classes of purchasers, while some manu- which are mailed with the statement on an facturers of lighting fixtures give net 30-day average 15 days after the sale, so that the terms to the jobber, net 60 days to the retailer, settlement occurs in 45 days, which correand net 30 days to the consumer, and similarly sponds to the current collection period on open with rectifiers. Insulating material and meas- accounts. Some very favored customers may uring instruments are sometimes quoted, have a 60-day trade acceptance provided., respectively, net 60 days, net 30 days, net 30 instead of the 30-day. Jobbers may allow days, while these products may also be sold on their large customers to settle on the 10th net 30-day terms to all three classes of pur- proximo. chasers. Small transformers are sometimes sold net 60 days to jobber, net 30 days to COAL AND COKE. retailer, and net 30 days to consumer. Some small motor manufacturers sell on terms of Anthracite coal is generally sold by the railnet 30 days to jobbers and retailers. Instances road coal companies through sales agents direct of terms of net 60 days as well as net 30 days to manufacturing plants and to dealers. to all three classes of purchasers are found on While several of the independent producers snap and push switches, fuses, and circuit sell to retailers direct,1 the greater number breakers. Small switchboards are sometimes market their coal through " jobbers'7 on a comquoted net 30 days to all classes of purchasers. mission basis, and a few sell outright to job- The balance oi the products are sold on a bers and retailers, disposing of their product contract basis. This applies to rotaries, large from week to week to the highest bidders. motors, and generators, large transformers, A considerable amount of coal is consigned by and large switchboards; that is, products Sroducers to local wholesalers or retailers, which are usually sold direct to consumers, obbing, in the restricted sense of sale by carinvolving more or less installation work. Con- load or barge load without physical handling tracts are also used in the case of large orders but with outright purchase of the coal, thus of any of the previously mentioned products. excluding sales agencies, is on the whole rela- Standard contracts call for 50 per cent cash, tively small in the case of anthracite, but a sight draft, bill of lading attached, 40 per cent considerable proportion of bituminous coal is in 30 days, and 10 per cent in 60 days. Another handled through jobbers. The methods of form requires 60 per cent on shipment, 20 per transacting the business are less rigid and cent in 30 days, and 20 per cent in 60 days. definitely fixed in the case of bituminous These terms, however, are varied in accord- coal, in particular with regard to retail ance with the credit standing of the customer dealers who handle the same. Jobbers in as well as the progress of the installation work, large part, however, do not rigidly confine the last payment in the latter case being so themselves to handling only either anthracite arranged as to fall due when the work is completed. Selling goods on consignment is an 1 The data relative to anthracite coal contained in this paragraph have exception, but some large manufacturers of been taken from the Report of the Federal/Trade Commission on Anthracite and Bituminous Coal, June 20,1917. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

266 FEDERAL RESERVE BULLETIN. MARCH, 1920. or bituminous. With respect to anthracite per cent per annum is provided, or one-half there is a considerable overlapping between the per cent is given for payment within 10 days. two classes of jobbers. The greater number The same rate of interest is charged on overof jobbers supply the local trade only, due accounts. The coal which is purchased although a few maintain branch offices at outright by dock companies at the head of the various points. In certain centers, for ex- Great Lakes, rather than handled on consignample, Buffalo, Detroit, and Chicago, there ment, generally bears terms of net 60 days exist also local wholesale trestle and dock from date of bill of lading. companies, who in some cases do also a retail Bituminous coal is generally sold by probusiness. ducers on proximo terms, the 15th being per- In certain sections of the country, the move- haps most frequent, although dates range ment of coal is distinctly seasonal, whereas in from the 10th to the 25th. In some cases other sections there is storage of coal to a greater settlement twice a month, for example, by or lesser extent. The territory beyond the head the 5th and 20th, is required. While proximo of the Great Lakes is very largely supplied by terms are customary in the case of contract shipments up the lakes during the summer, business, in some cases net 30 days is speciwhich are stored on the docks and shipped out fied, and it is largely used for spot or open marduring the fall and winter months as needed. ket sales. Longer terms, such as 60 days, are Some all-rail coal from Illinois and Indiana given in some cases, although producers in fields, however, goes to the Northwest during many cases use the uniform sales contract conthe winter. To a certain extent winter sup- taining a clause similar to that contained in the plies of coal are moved into New England dur- anthracite producers' contract providing for ing the summer, although both rail and water cancellation of the contract at the seller's line coal also move in during the winter. option in case the account is unpaid, or the There is some storage of coal in northern New credit of the purchaser is impaired, also that York. Bituminous coal is stored to some ex- accounts 10 days overdue are subject to sight tent during the summer by business houses, draft with interest from time of maturity. but over the remainder of the United States This by no means implies, however, that setthe movement of coal is largely seasonal. As tlement is prompt in all cases.1 From certain is well known, storage is more difficult in the sections it is stated that purchasers largely run case of bituminous coal than in the case of beyond the due date, one producer stating that anthracite, both because of the deterioration payments in general are effected from 15 to 45 of the softer bituminous and because of dan- days thereafter, and that although it is endeavger of spontaneous combustion when the coal ored to collect interest for the extra time taken, is not properly stored. it is next to impossible to do so. In one field Distinction should be made in the methods it is reported that an account is rarely conof conducting business between the territory, sidered old until 60 days past due date. From roughly, east of a line north and south through certain fields it is stated that few purchasers Erie and Pittsburgh, and the territory west make payments until the coal reaches its desthereof extending to the Rocky Mountains. tination, and some only on the 10th proximo In the East the tonnage is larger, the qualities thereafter. Payment is thus made on the of coal differ, and methods of merchandising basis of coal received rather than on coal are entirely different from those in the West. shipped. The railroads are stated often to take In the East supply and demand are more up to 90 days, while in certain cases longer nearly equal, whereas in the western section a terms are given them than are given other buyer's market almost uniformly prevails. purchasers. Thus in one field payment by There is a corresponding difference in the de- them is specified from the 15th to the 25th gree to which business terms may be insisted proximo, whereas other purchasers are required upon. to effect payment by the 10th proximo, and in Producers' terms on anthracite are prac- another field terms to the railroads call for tically universally net 30 days. In certain payment at the close of the month for shipcases proximo terms, for example, the 15th, ments during the previous month. In several are provided. Provision is made for the western fields large steam users receive up to requirement of payment in advance for further 60 days, whereas 30-day terms are specified shipments if the credit of the customer is for ordinary consumers and dealers. Lake impaired, or cancellation of the contract at the seller's option in case the amount is unpaid. 1 Operators at times may receive payment in less than the customary 30 days, in order to encourage shipments or to assist in financing In certain cases anticipation at the rate of 6 them. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MARCH, 1920. FEDERAL RESERVE BULLETIN". 267 and tide water shipments, on account of longer than 30 days, but in times of shortage the time between date of shipment and actual con- prompt collections made by retailers enable sumption of the coal, bear longer terms than prompter payment of wholesalers. It is stated do ordinary shipments, net 30 or 60 days from in a recent study* that the extension of credit date of loading at the port being frequent, has some influence upon the choice of coal although in some cases interest at the rate of 6 handled by the local dealer, and practical and per cent per annum is charged for time beyond exclusive connections are made when he is 30 days. When this extra time is given, the carried by the wholesaler. purchaser is stated to usually sign an acceptance. Discounts for cash are very rare. In PETROLEUM. some cases anticipation is allowed at the rate of 6 per cent per annum, in other cases % per The commercial organization of the petrocent 10 days is given, while in one of the leum industry at the present time is exceedingly southern fields cash discounts up to 2 per cent complex.2 Whereas in the earlier days of the are reported. industry there was a rather well-defined divi- Coke, in particular by-product coke, is pro- sion of the field into production, transportaduced by certain of the large consumers them- tion, refining and marketing (though the latter selves, or by plants which they control. All two were often combined), there is now concoke is generally sold on terms calling for pay- siderable combination of all four classes of ment by the 20th proximo, but in some cases the business. There is an increasing tendency for 10th, 15th, or 25th is specified. Certain pur- the larger units to sell to consumers, and the chasers are stated to elect to make settlement systems of service and filling stations are being twice a month instead. While sight draft with steadily extended, as well as the tank-wagon bill of lading attached, as in other industries, is service. In the remote sections there is, of generally used only in the case of poor credit course, the greatest dependence upon the local risks, one southern producer allows a cash dis- dealer. count of 1 per cent where this method is em- The method of marketing varies with the ployed in place of the regular proximo terms. type of product. Crude oil is purchased by Furnace coke is largely sold to steel producers, refiners to some extent, although the larger but there are many small foundries which companies obtain a considerable supply from purchase foundry co£e, and at times the finan- their own wells or those of affiliated companies. cial responsibility of some foundries is some- Refiners to some extent sell the various petrowhat impaired, but ordinarily little difficulty is leum products to one another. Aside from found in making collections. In very rare such sales, the lighter products, such as gasocases, a note is accepted for foundry or domes- line and kerosene, as well as lubricating oil, tic coke that is put into stock for future use. are sold by refiners to jobbers and retailers, There have been no general changes in terms in and direct to large consumers. Fuel oil (inthe coal and coke industry for 15 years or more. cluding also gas oil and road oil), on the other hand, while often sold to jobbers, is usually Wholesalers' terms on both anthracite and sold direct to consumers, estimates placing the bituminous in large measure parallel operators'. amount so sold at upwards of 80 to 90 per Proximo terms are largely employed, such as cent of the output. In certain cases refiners the 10th and 15th. Anticipation is permitted dispose only of their surplus products, for in certain cases, such as for tidewater coal at example, fuel oil to jobbers, while selling the New York, at the rate of 6 per cent per annum, other products direct to retailers and concorresponding to a cash basis of 1 per cent. sumers. In the Middle Western States a Spot sales on anthracite at New York bear the large number of relatively small refiners have same terms as contract sales, namely, 15th proxgrown up, who depend to a great extent upon imo (formerly the 25th), although sales are often separate jobbers for the marketing of their made for cash, and a slightly lesser price, such as 5 cents per ton, is quoted in such cases. The Eroducts, which, however, include relatively ttle lubricating oil. Jobbers' customers are average purchaser of bituminous is said to be stated by some to be considerably smaller than less prompt than the average retailer of anthracustomers of refiners. Middle Western refiners' cite, and accounts, e. g., at New York and sales to jobbers vary in amount from 1 to 1,000 Boston, often run to 90 or 120 days. A closer tank cars, and sales of from 100 to 200 cars check on credits during the last two years is reported from Kansas City. When business is 1 Ibid. normal it is stated from Boston that anthracite 2 Certain of the data on this subject have been taken from the studies wholesalers often extend considerably longer of the FederalTrade Commission, in particular the Keport on the Price of Gasoline in 1915. April 11,1917. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

268 FEDERAL RESERVE BULLETIK. MARCH, 1920. are very common. Sales from jobbers to reported to have largely succeeded the use of dealers and consumers range in amount from the adopted terms for all the classes of refined 5 to 1,000 gallons, delivery usually being petroleum products. Prior to December 1, made from tank wagon, except in the case oi 1918, a cash discount of 2 per cent 10 days lubricating oil, which is usually shipped in had been allowed in California in many cases, drums of 50 gallons. although one of the leading companies had as Judging from the data available, there its terms 2 per cent 10 days, net 60 days, appears to have been little attempt to obtain when contained in cases, drums, and iron absolute uniformity of terms in the industry barrels, and 1 per cent 10 days, net 60 days, during the past decade. Only one instance under special contract at special prices. Prior has come to notice of formal adoption of terms. to about 1918 the net period was largely 60 In 1913 a Middle Western association represent- days in many sections. Distinction is made by ing independent marketing interests adopted a certain refiners between carload shipments on set of regulations to govern trading in petro- the one hand and less-than-carload shipments leum. These regulations were concerned more and deliveries in bulk from stations and out particularly with questions such as the fixing of tank wagons on the other hand, correspondof standards for the various petroleum products ing in considerable measure to a difference in and thus avoidance of disputes over the specific type of purchaser. Oil jobbers having bulk gravity or viscosity of oils, what constitutes a storage purchase in carload lots, which they good delivery, etc. The regulations contained barrel or can and ship to factories, garages, and a section dealing with terms, and were revised storekeepers. Gasoline is sold by refiners,|in in 1915. Eegular terms, however, are generally addition, to tractor and automobile manufacrecognized for each of the principal classes of turers and to large garages. Whereas the carpetroleum products. A basis for an under- load shipments bear the regular terms given standing of the differences in terms as between above, less-than-carload shipments bear conthe various products is afforded by the differ- siderably shorter terms. In particular, for ences in marketing methods outlined above. tank-wagon deliveries and filling station sales During the last several years there has been a net cash is largely required. Weekly or 10-day shortening of terms on the refined products, in settlement is now specified in certain cases, particular about 1918. The trade acceptance whereas formerly monthly settlement was has also come into some use. It is estimated largely permitted and is still to some extent. by a large Eastern refiner that collections in the These terms apply in general to other refined industry in general average about 45 days. products also. A sight draft is used by one Garages on the whole are slowest pay. refiner in the case of garages purchasing car Turning to the individual products, crude load lots, unless they are " gilt-edged." A oil is sold on strictly net terms. Settlement is southwestern refiner requires cash on delivery required either once or twice a month. The or net 10 days for carload shipments, but * in dates are stated generally to be the 10th and some cases a discount of 1 per cent 10 days is 25th in the midcontinent field. In some sec- allowed. tions considerable variation is noted, different Branded automobile oils are sold in carload California refiners, for example, placing the lots by only a small number of the larger figure variously at the 10th 20th, and the companies, the purchasers being garages and ; 15th to the 25th. automobile-accessory jobbers. Terms on both The shortening of terms in the industry is carload and less-than-carload business are well illustrated in the case of the lighter largely 1 per cent 10 days, net 30 days. In refined products, such as gasoline and kerosene. the case of lubricating oils and greases and These now bear terms of net 30 days. Proximo wax, carload lots are sold more particularly terms may be specified in certain cases, for to jobbers such as mentioned above. One example the 15th. A discount of 1 per cent refiner applies the regular net 30-day terms to for payment within 10 days prevails in some carload business but grants a discount of sections, in particular the midcontinent field, 1 per cent 10 days on less-than-carload shipand such, in fact, are the adopted terms on ments and bulk deliveries from stations and these products mentioned above. These prod- out of tank wagons. In the latter sphere ucts are stated to be generally considered as competition is experienced, not only with the cash products in that field, and it is said that limited number of refiners doing a carload the customer who takes 30 days' time is business, but also with those refiners doing a frequently regarded as undesirable, almost all less-than-carload business and the jobbers who firms discounting their bills. A sight draft is do practically nothing but a less-than-carload Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MARCH, 1920. FEDEBAL RESERVE BULLETIN. 269 business. In California the discount was It is stated rather often in the industry that eliminated December 1, 1918, and terms are jobbers' terms are longer than refiners' on siminow net 30 days or net 60 days, proximo terms, lar products. In the case of the lighter oils, such as the 10th, being employed in some cases, less than carload shipments in general bear whereas formerly a 2 per cent discount had terms of 1 per cent 10 days, net 30 days, and been largely given. A leading refiner selling lubricating oil bears instead a discount of 2 per largely to railways has terms of net 60 days. cent. In some cases, Middle Western jobbers' The product in general, however, still largely terms are given as net 30 days on gasoline and carries a cash discount. In the midcontinent net 60 days on lubricating oil. Certain jobbers, field terms are either 2 per cent 10 days, net however, state that, while their terms from re- 60 days, or 1 per cent 10 days, net 30 days. finers on the several products differ as indicated The former are also the terms adopted by the above, they endeavor to make their terms uniassociation mentioned above, but prior to formly 1 per cent 10 days, net 30 days, on all 1915 the net period was only 30 days. Each products. The net period on lubricating oil of the two sets of terms prevalent in the mid- some years ago was 60 days. In some cases continent field is now used by some of the one-half per cent 10 days, net 30 days, is quoted larger refiners in other sections, and no absolute on refined oil and gasoline and 1 per cent 10 uniformity of practice prevails. A more or days, net 30 days, on lubricating products. less general tendency, however, appears to be While these are the nominal terms, purchasers evident toward terms of 1 per cent 10 days, are stated in certain cases to take longer time. net 30 days. Some refiners whose terms for- It is reported that from 60 days to 6 moaths merly were 2 per cent 10 days, net 60 days, is frequently extended by Middle Western jobhave recently made this change. One large bers. Tank-wagon deliveries of gasoline and eastern refiner gives terms of 1 per cent 10 kerosene, however, are usually on a net cash days, net 30 days, to consumers, and almost basis, as in the case of similar sales by refiners. entirely omits the discount on sales to jobbers, In some cases the time has been reduced from quoting them net 30 days. In the Southwest- 15 to 30 days since about 1917. terms of 2 per cent 10 days, net 30 days, are stated to be largely in use. It has been suggested that the generally longer terms and Practice of Handling Bills of Exchange in Foreign cash discount prevalent on lubricating products Countries. are due to the fact that they are more of a specialty and consequently of a less rapid turn- [American Vice Consul, Charles G. Winslow, Auckland, New Zealand.] over as compared with other products, such as NEW ZEALAND. gasoline. Banking conditions in New Zealand are greatly influ- Terms on fuel oil (including gas oil and road enced by London banks, since practically all drafts drawn oil) are almost uniformly net 30 days. In cer- on firms in the United States by New Zealand exporters pass through London banks. tain cases proximo terms are employed, such as The following is a list of the six banks in New Zealand, the 10th. A Middle Western jobber, however, all of which do a foreign exchange business: reports that he receives a cash discount of 1 per National Bank of New Zealand (American agents, Canacent 10 days from refiners on this product, and dian Bank of Commerce and Bank of British North America, New York City). a large refiner states that such terms were occa- Union Bank of Australia (American agents, Canadian sionally given up to about a year and a, half ago. Bank of Commerce, International Banking Corporation, In the Southwest cash on delivery is largely and Brown Bros. & Co., New York City), specified. These terms obtain also on bunker Commercial Bank of Australia (American agents, Irving National Bank and National City Bank of New York New deliveries. In certain case up to 90 days is York City). given to contractors in the case of sales of road Bank of New Zealand (American agents, Canadian Bank oil, while terms of a leading refiner are net 60 of Commerce, J. P. Morgan & Co., and Bank of British North days to roofing manufacturers. Purchasers of America, New York City). Bank of New South Wales (American agents, Standard all three products as a rule pay more promptly Bank of South Africa (Ltd.), New York City). than do purchasers of the other two principal Bank of Australasia (American agent, International classes of products. Municipalities are stated Banking Corporation, New York City). to be the slowest paying type of purchaser of this class of product. In certain southwestern EXPORT TRADE. districts, in particular in rice-growing sections, From 75 to 80 per cent of the exports to the United States fuel distillate is delivered^ farmers on contract are financed by drafts drawn under letters of credit from American banks. The New Zealand exporter draws a in the spring and summer, with October 1 or draft which he sells to the New Zealand bank at a fixed November 1 due date. rate of discount. The other 20 or 25 per cent of exports to Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

270 FEDERAL RESERVE BULLETIN". MARCH, 1920. the United States are financed by drafts (at present usually Vancouver or Wellington-San Francisco routes, but on sight, with documents attached) drawn on firms who have account of the war, shipping strikes, etc., there are occanot established credit, in cases when the local firm is so sional times when mail does not leave for three or four well established that the bank is willing to accept the draft. weeks. At present there are no scheduled mail sailings, In both cases the local bank forwards the draft with docu- owing to unsettled shipping conditions existing. ments attached to their agent in the United States, who United States discount and exchange rates are quoted collects the amount of the draft from the receiver of the every second day when the market is active, but when goods and the proceeds are usually forwarded to London. stationary weekly reports are received. This information Credit in practically every case is lodged with New York is distributed from the head offices of the banks, which are banks, but in some cases credit is established with banks in principally situated at Wellington, who receive the in- San Francisco, Chicago, New Orleans, etc. The terms on formation by cable from the London branch or American which credit is opened are determined by the American representatives. Occasionally the rate is forwarded by firm establishing the credit. Australian banks. About 2 £er cent of the bills on banks in New York and The London branches usually forward the rates of exother American cities are drawn in dollars, the other 98 per change in the principal financial centers of the world, and cent being drawn in pounds sterling. As the bills are usu- conversion rates on oriental centers are received about ally remitted to London for clearance through branch New once a month or when occasions arise. Zealand banks it is more convenient for the local bank to Exchange tables (dollars into pounds sterling) are not issue drafts in pounds sterling. The current rate of ex- published in New Zealand, but a few firms have tables as change makes the drawing of drafts in dollars less practica- low as $4.50 to the pound sterling obtained from the ble as the exchange might fall during the transmission of United States. the draft, and thus to protect itself the New Zealand bank Local banks do not receive regular quotations of discount is compelled to charge a very high commission. All the rates for New York or other American banks, except for banks doing business in New Zealand have branches in the rates of exchange mentioned above, as drafts are not London, through which American drafts are cleared. discounted in this sense, and only a commission as given In regard to usance of bills, sight drafts are the standard in the above table is charged. at the present time, although there is an equal number of ''Forward" rates of New York discount are not quoted. time drafts, most of which are 30-day drafts, although There is no profit on commercial bills except the regular some firms still give 60, 90, and 120 days. Prior t-n the war exchange rate quoted above on the prevailing rate of 60, 90, and 120-day drafts were more prevalent than either exchange. New York or other American discount rates sight or 30-day drafts, and this condition will probably are not taken as a basis for purchasing time bills on a memreturn when Germany again enters this market and other ber bank of the Federal Reserve System. competition becomes keen. It must be remembered that New Zealand banks issue drafts on London whenever usance is governed by the period of credit established by possible, rather than sell drafts on banks in the United the American bank. States. The reason for this is that the Dominion banks All drafts are negotiated through local banks, no brokers desire to place business in the hands of their branches in being employed in New Zealand. It is quite possible that London. some bills pass through the hands of London or New York IMPORT TRADE. brokers. The six banks in New Zealand have an agreement by The commission for collecting documentary or clean which they quote the same exchange rates, so there is no items (without documents) in New Zealand is £ per cent, competition between the banks. The present agreement which is a standard rate between the six banks operating came into force in 1916 and is subject to change on a week's in this country. Of this commission J per cent is returned notice. According to the agreement previous to 1916 about to the bank that sends in the business, thus the Auckland i per cent less on each item was charged. The present bank in reality only receives J per cent. rates at which banks buy drafts on London and cities in The total cost of collecting clean and documentary items the United States are as follows: Sight, 1 per cent; 30 days, on New York is the $• per cent commission, plus exchange If per cent; 60 days, If per cent; 90 days, 2J per cent; of £ per cent for sight drafts on New York and San Fran- 120 days, 2f per cent. These commissions are charged cisco (} per cent additional on Chicago) and stamp duties. from the day mail leaves for the United States or England. A charge of Is. (24 cents) commission is usually made for Should an exporter desire to draw money a week or two obtaining acceptance if bill is not to be left with the before the mail departs he must pay interest to the date of Auckland bank for collection. These cases are very few. sailing. Of course the banks sometimes waive this The New Zealand Government stamp fees for clean and interest charge to good clients. On sight and demand documentary items are as follows: Sight (demand 2) 2d. drafts a stamp duty or poundage of 2d. (4 cents) for every (4 cents); usance Is. (24 cents) per £50 ($243) or part £50 ($243) is collected by the Government. thereof. About 66 per cent of the drafts drawn on American banks The drawee pays exchange, commission, stamps, etc., are domiciled in London in pounds sterling and the on about one-half of the bills negotiated, and the American remainder in the United States, mostly in pounds sterling, bank is debited with these charges on the rest of the bills. except for about 2 per cent drawn in dollars. In export This, however, is governed by instructions from banks in trade this is governed by the credit established. the United States. In case of no instructions the amount is deducted from the remittance to the banks in the United Mail service with American ports is about as frequent as States. the service with London, although there are few vessels running direct to London, via Panama and Suez Canals, A Government poundage (stamp tax) of 4d. (8 cents), that do not carry mail to the United States. All the mail 2d. (4 cents) on the original and 2d. (4 cents) on the steamers for American ports carry mail for England. Mail duplicate is made on sight drafts remitted to America. for London requires one or two weeks longer than mail for On sight drafts there is a charge of 6d. (12 cents) for £25 New York. Naturally mail to San Francisco arrives a ($121.66), Is. (24 cents) per £50 ($243) or part thereof. few days in advance of mail for New York. Usually letters for both the United States and England leave the country 1 Sight draft means demand draft in New Zealand and the customary three days of grace given in the United States on a sight draft are not within a week or so after mailing by either the Auckland- allowed m New Zealand. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

271 MARCH, 1920. FEDERAL RESERVE BULLETIN. The charges in regard to noting and protesting are the When goods arrive before shipping documents a letter same for the six banks in New Zealand. If a bill is noted of indemnity (or bond) is usually taken out in order to only the charge is 5s. ($1.21), but if a full protest is taken obtain the goods from the customs. Letters of indemnity out the charge is £1 Is. ($5.11). cost 5s. ($1.21) for a letter covering an amount up to £100 Whenever a draft is drawn after protest New Zealand ($487), and 10s. 6d. ($2.55) for any amount over £100 banks use every endeavor to collect protest charges and ($487). These letters are issued only to good clients of protest fees from the drawees, and this is insisted upon the banks, and securities are required in case of doubtful unless the drawee of the bill can show that the dishonor customers. of the bill was caused through no fault of his. No consular invoice is required for shipments from the The New Zealand laws governing protest of items are United States to New Zealand, but under a war measure very simple. When a bill is refused by the drawee it is commodities from neutral countries must be covered by a the custom of the bank to obtain his written answer on consular certificate. The only documents required in the reverse side of the bill. In absence of instructions to connection with shipments from the United States are the contrary it is then usual to note the bill for nonaccept- bill of lading and invoice. ance or nonpayment as the case may be, unless the bank It is not customary to permit examination of goods by is instructed definitely to take out full protest. The law drawee without permission by cable or letter from the provides that if a bill is noted (cost 5s.—$1.21) the protest drawer or American bank. can always be taken out at a subsequent date. The When bills of lading are made "to order" or "to order reason, therefore, of noting only in the first place is on of the consignee" and have not come to hand, consignees account of the small charge being incurred, as in many are not given possession of the goods unless they have a cases the drafts are ultimately accepted or paid by the letter of indemnity indorsed by the bank. drawee, and thus the extra expense of protesting is dis- It is very important that bills of lading should be made pensed with. In the event of a bill being noted and the out "to order of the shipper" and indorsed "to ." draft held awaiting further instructions from the drawer They should never be made out "to order of the conit is the custom to present the draft again to the drawee signee," for in the event of the dishonor of the draft it is on the notarial due date. often difficult to obtain a discharge of the bill of lading. Payment of the collection and banking charges on bills In case goods are not accepted by the consignee and drawn upon local merchants is governed by instructions the bank is directed to sell at the best market price, such from American banks. Commission and stamp charges goods are usually sold by a reliable local auctioneering are as cited above. These charges are usually governed by firm, when a member of the bank attends the sale and looks the contract between buyer and seller. The banks do not after the interests of the consignor. However, the bank meet with many cases where reasonable charges are refused. assumes no responsibility in this connection. Clients object to pay additional charges unless arrange- When the bank is instructed to return American goods ments have been made. During the war much dissatis- to the shipper the first step is to secure release of the goods faction was brought about by additional charges, some of from the warehouse, then obtain space on a vessel by the which seemed to be absurd charges which should have best route to the original port of shipment, secure a full been paid by the exporter. set of shipping documents, including returned American Local banks only guarantee the payment of drafts under goods invoice, bill of lading, insurance and war-risk a letter of credit, no matter what may be the integrity or policies, all of which are attached to the draft for charges. financial standing of the firm. Returned goods must have a' 'transshipment entry'' which Local banks do not receive goods on consignment, and involves no duty. when shipping documents are received they are turned The customary phrase to be included in drafts drawn in over to the consignee or the acceptor of the drafts. Usually United States currency or pounds sterling on New Zealand the bank only sees the shipping documents. banks in order to enable the local banks to remit the Ameri- The local banks receive parcels which are delivered to can banks the face amount without deduction is as follows: the consignee against payment or acceptance of draft, but "Please collect sufficient amount from the drawee so take no responsibility. Commission, stamps, etc., are that you may remit to us a draft in dollars for the face charged as above. amount of the bill." The New Zealand law requires that goods shall enter The customary phrase to be included in drafts drawn the customs within 21 days after arrival, but this law is on New Zealand banks in dollars or pounds in order to not strictly enforced, and the customs allow the goods to enable the local banks to remit the face amount of the lie on the wharf a reasonable time, after which the con- bill plus collection charges, is "Please collect sufficient signee or shipping company is required to place the goods amount from the drawee so that you may remit to us a in bond. After lying on the wharf one clear day the draft in dollars for the face amount of the bill plus collec- Auckland Harbor Board charges storage on the goods at tion charges in terms of enfacements of the bill." a flat rate of 6d. (12 cents) per ton per night. The customary phrase to be included in drafts drawn on No fine is imposed by the customs department for failure New Zealand banks in United States dollars or pounds to make prompt entry, but the harbor board charges sterling in order to enable local banks to remit the Ameristorage at the rate cited above. When harbor board can banks the face amount of such bills plus the collecstorage charges are incurred it is customary for the con- tion charges and interest on American banks, is as follows: signee to pay these charges. "Please collect sufficient amount from the drawee so In the event of dishonor of drafts the local banks arrange that you may remit to us a draft in dollars for the face for the warehousing and insuring of goods on arrival and amount of the bill plus collection charges in terms of thus protect the interest of the United States bankers. enfacements of the bill, together with interest at The usual rate of cartage to the warehouse is 10s. ($2.43) rate covering period." an hour, or 5s. ($1.21) a ton, and the storage 8s. ($1.93) Where local banks are asked to remit in United States per ton per week. The banks also arrange for insurance currency it is the custom of the banks to do so, but in the in the warehouses, which is usually 5s. ($1.21) for a month event of a further fall in the rate of exchange the loss falls or less, and 8s. ($1.93) for three months, etc., on £100 upon the banks in New Zealand. ($487). The consignee usually pays the above drayage When bills are drawn on New Zealand in other than and storage charges. local currency it is not customary for the drawee to pay Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

272 FEDERAL RESERVE BULLETIN". MARCH, 1920. such bills by a draft purchased by another bank in New National City Bank, New York City—Continued. Zealand. Pinar del Rio, Cuba. When drafts are drawn in pounds sterling local banks Placetas del Norte, Cuba. agree upon a standard rate of exchange which is applied Remedios, Cuba. to all bills of exchange. This rate of exchange is the Sagua la Grande, Cuba. rate current on the date of payment of bill. There is no Sancti Spiritus, Cuba. law in regard to the rate of exchange. In case of term Santa Clara, Cuba. bills local banks take a form of acceptance as follows: Santiago, Cuba. Union de Reyes, Cuba. " Sighted Yaguajay, Cuba. "Accepted payable at Genoa, Italy. "Converted into sterling at the rate currentan New Zea- San Juan, Porto Rico. land at date of maturity. Ponce, Porto Rico. Vladivostok, Siberia. The rate of interest generally allowed acceptors for Barcelona, Spain. retiring drafts before maturity is 3 per cent, on fixed Cape Town, South Africa. deposits 3J per cent. There is no law fixing the above Port of Spain, Trinidad. rate of interest, which is determined from time to time Calle Rondeau, Montevideo, Uruguay. by agreement between the New Zealand banks. Montevideo, Uruguay. Generally there are no other charges beyond the protest Caracas, Venezuela. fees as mentioned above in connection with the return to Maracaibo, Venezuela. American bankers of dishonored bills. In the event of Temporarily closed— a draft being ultimately paid or proceeds coming into the Moscow, Russia. hands of the local banks, it is usual for the banks to de- Petrograd, Russia. duct the charges when remitting proceeds to the United First National Bank, Boston, Mass.: States. When this is not done it is usual to ask the Ameri- Buenos Aires, Argentina. can banks to remit the amount of the charges to London. BANKS DOING BUSINESS UNDER AGREEMENT WITH THE FEDERAL RESERVE BOARD. Foreign Branches. American Foreign Banking Corporation, New York City: Brussels, Belgium. There is given below a list of foreign branches Cali, Colombia. Cristobal, Canal Zone. of national banks and of banks doing business Harbin, Manchuria. under agreement with the Federal Reserve Havana, Cuba. Board, which were open for business on Feb- Manila, P. I. ruary 18, 1920: Panama, Republic of Panama. Port au Prince, Haiti. NATIONAL BANKS. Rio de Janeiro, Brazil. San Pedro Sula, Honduras. National City Bank, New York City: Buenos Aires, Argentina. Mercantile Bank of the Americas, Inc., New York City: Plaza Once, Buenos Aires, Argentina. Paris, France. Rosario, Argentina. Barcelona, Spain. Brussels, Belgium. Madrid, Spain. Antwerp, Belgium. Affiliated Institutions— Bahia, Brazil. Banco Mercantil Americano de Colombia— Pernambuco, Brazil. Bogota, Barranquilla, Cartagena, Medellin, Porto Alegre, Brazil. Cali, Girardot, Manizales, Honda, Armenia, Rio de Janeiro, Brazil. Bucaramanga, and Cucuta, Colombia. Santos, Brazil. Banco Mercantil Americano del Peru— Sao Paulo, Brazil. Lima, Arequipa, Chiclayo, Callao, and Trujillo, Barranquilla, Colombia. Peru. Bogota, Colombia. Banco Mercantil Americano de Caracas— Medellin, Colombia. Caracas, La Guayra, Maracaibo, and Puerto Santiago, Chile. Cabello, Venezuela. Valparaiso, Chile. American Mercantile Bank of Brazil— Artemisa, Cuba. Para and Pernambuco, Brazil. Bayamo, Cuba. National Bank of Nicaragua— Caibarien, Cuba. Managua, Bluefields, Leon, and Granada, Camaguey, Cuba. Nicaragua. Cardenas, Cuba. Banco Mercantil Americano de Cuba— Ciego de Avila, Cuba. Havana, Cuba. Cienfuegos, Cuba. Banco Mercantil de Costa Rica— Colon, Cuba. San Jose, Costa Rica. Cruces, Cuba. (A branch office is also maintained by the Mercantile Cuatro Caminos, Havana, Cuba. Bank of the Americas, Inc., in New Orleans, La.) Galiano, Havana, Cuba. Guantanamo, Cuba. Asia Banking Corporation, New York City: Havana, Cuba. Canton, China. Manzanillo, Cuba. Changsha, China. Matanzas, Cuba. Hankow, China. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MARCH, 1920. FEDERAL RESERVE BULLETIN. 273 Asia Banking Corporation, New York City—Continued. Hongkong, China. Capital. Surplus. Total re- Manila, P. I. Peking, China. Shanghai, China. District No. 2. Tientsin, China. Bank of Hasbrouck Heights, Hasbrouck International Banking Corporation, New York City: Heights, N. J $50,000 $10,000 $65,000 Marine Trust Co. of Buffalo, Buffalo, Batavia, Java. N. Y 7,500,000 7,500,000 92,791,454 Bombay, India. Bank of Coney Island, Coney Island, Calcutta, India. Th N e e P w e o Y p o le rk s T C r i u ty st Co., Malone, N. Y... 2 3 0 0 0 0 , , 0 0 0 0 0 0 1 1 0 0 0 0 , , 0 0 0 0 0 a 3,0 5 8 2 1 9 , , 7 5 7 00 8 Canton, China. The State Bank of Shortsville, Shorts- Cebu, Philippines. ville,N. Y 30,000 6,000 36,000 Colon, Republic of Panama. Industrial Bank of New York, New- York Citv 1,000,000 500,000 4,225,613 Hankow, China. Harbin, China. District No. 4. Hongkong, China. Merchants State Bank, New Philadel- Kobe, Japan. phia, Ohio $100,000 $50,000 $808,659 London, England. Commercial Banking & Trust Co., Lyons, France. Wooster, Ohio 150,000 31,000 1,030,621 Guaranty Safe Deposit & Trust Co., Manila, P. I. Butler,Pa 250,000 250,000 3,722,042 Panama, Republic of Panama. Real Estate Trust Co., Washington, Pa. 200,000 300,000 2,619,255 Puerto Plata, Dominican Republic. District No. 0. Peking, China. Rangoon, India. Farmers Banking & Trust Co., Tar- Santo Domingo, Dominican Republic. boro,N.C 100,000 50,000 1,232,171 Peoples Bank of Floyd County, Floyd, Sanchez, Dominican Republic. Va " 35,000 25,000 279,160 San Pedro de Macoris, Dominican Republic. Santiago, Dominican Republic. District No. 6. Shanghai, China. Bank & Trust Co. of Talladega, Talla- Singapore, Straits Settlements. dega, Ala 100,000 16,000 598,203 Soerabaya, Java. Farmers & Merchants Bank, Chipley, Ga 25,000 12,500 228,647 Tientsin, China. Tsingtao, China. District No. 7. Yokohama, Japan. Morton Park State Bank, Cicero, HI 100,000 12, 500 968,415 (A branch office is also maintained by the Interna- First State Bank, Divernon, 111 50,000 50,000 tional Banking Corporation in San Francisco, .Leon Savings Bank, Leon, Iowa 25,000 102,189 Security Trust & Savings Bank, Storm Calif.) Lake, Iowa 75,000 2/648 596,749 Park-Union Foreign Banking Corporation, New York City: Marysville Savings Bank, Marysville, Mich 100,000 50,000 469,189 Paris, France. Farmers State Bank, Montague, Mich.. 25,000 5,000 371,812 Shanghai, China. Yokohama, Japan. District No. 8. Tokyo, Japan. Peoples State Bank, Cabot, Ark 25,000 2,500 27,500 (Branch offices are also maintained in San Francisco, Tower Grove Bank, St. Louis, Mo 200,000 50,000 3,268,121 Calif., and Seattle, Wash., by the Park-Union District No. 9. Banking Corporation.) ThelFirst National Corporation, Boston, Mass., has The Manistique Bank, Manistique, Mich 50,000 30,000 862,480 opened no foreign branches. A branch office of this corporation is maintained at 14 Wall Street, New York City. DistrictlNo. 10. ^ *The Shawmut Corporation of Boston, Mass., has opened The Security Bank, Meadow Grove, no foreign branches. A branch office of this corporation Nebr 25,000 267,682 is maintained at 65 Broadway, New York. Guaranty State Bank, Ardmore, Okla.. 200,000 60,000 3,450,228 The IFrench American Banking Corporation of New First State Bank, Oklahoma City, Okla. 200,000 14,400 2,250,963 York City and the Foreign Credit Corporation of New District No. 11. York City have opened no foreign or domestic branches. First State Bank, George West, Tex— 50,000 13,000 255,386 District No. IP. State Banks and Trust Companies. Union Bank & Trust Co. of Los Angeles, The following list shows the State banks and D. L W os . A St n a g n e d l r e o s d , C & a l C if o., Blackfoot, Idaho. 7 1 5 0 0 0 , ,0 0 0 0 0 0 11 7 4 0 , , 5 0 0 0 0 0 5 2 , , 5 5 5 4 9 5 , , 5 4 5 2 5 6 trust companies which have been admitted to Bank of Hansen^IIansen, Idaho 25,000 5,000 337,358 First Bank of Homedale, Homedale, membership in the Federal Reserve System Idaho 25,000 27,500 Farmers & Merchants Bank, Rupert, during|the month of February. Idaho 35,000 42,237 One thousand two hundred and forty-one First State Bank, Gresham, Oreg 30,000 "25,666 630,243 Lake County Loan & Savings Bank, State institutions are now members of the sys- Lakeview, Oreg 40,000 10,000 328,023 Fillmore Commercial & Savings Bank, tem, having a total capital of $436,570,766, Fillmore, Utah 50,000 10,000 60,000 total surplus of $458,359,566, and total re- Buena State Bank, Buena, Wash 25,000 190,556 Citizens State Bank, Puyallup, Wash... 50,000 10,000 1,069,651 sources of $9,778,717,231. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

274 FEDERAL RESERVE BULLETIN. MARCH, 1920. WITHDRAWAL. reverses of January, 1915, the high point for The Pierce Trust & Savings Bank, Sycamore, 111., has withdrawn the month, a numerical decrease of 80 per from membership. cent appears. Separated according to Fed- CONVERSION. eral Reserve districts, the January statistics The Illinois State Bank, East St. Louis, 111., has converted into the show more failures than last year in the first, First National Bank in East St. Louis. third, fifth, tenth, and twelfth districts, but CHANGE OF NAME. the increases are slight, and are more than The Dime Deposit Bank, Wilkes-Barre, Pa., has changed its name offset by the declines in the seven other disto "Dime Bank Title & Trust Co." tricts. An even more favorable exhibit is New National Bank Charters. made by the January liabilities, which are smaller than those of that month of 1919 in The Comptroller of the Currency reports every Federal Reserve district except the the following increases and reductions in the seventh, tenth, and twelfth districts. number and capital of national banks during the period from January 31 to February 27, Failures during January. 1920, inclusive: Banks. New charters issued to 33 Number. Liabilities. With capital of $1,815,000 Districts. Increase of capital approved for 55 1920 1919 1920 1919 With new capital of ,. 6,545,000 Aggregate number of new charters and First 74 66 $632,814 $850,345 banks increasing capital 88 Second 103 134 1,212,644 3,258,200 With aggregate of new capital authorized 8,360,000 Third 39 35 828,805 976 464 Number of banks liquidating (other than Fourth 39 58 327,743 1,103,950 those consolidating with other national S Fi i f x t t h h 3 3 5 7 3 4 4 3 2 2 3 8 5 4 , , 3 9 5 4 7 3 3 6 7 1 6 7 , , 5 1 1 5 7 5 banks under the act of June 3, 1864)... 7 Seventh.. 57 74 1,179,910 988,347 Capital of same banks 425,000 Eighth 34 60 168,764 654,396 Ninth. .. . 15 25 132,265 203,589 Number of banks reducing capital 0 Tenth 32 26 367 433 320 331 Reduction of capital 0 Eleventh 33 48 284,096 695,082 Total number of banks going into liquida- Twelfth 71 70 1,585,258 692,022 tion or reducing capital (other than those Total 569 673 7,240,032 10,736,398 consolidating with other national banks under the act of June 3, 1864) 7 Aggregate capital reduction 425,000 Fiduciary Powers Granted to National Banks. Consolidation of national banks under the act of Nov. 7, 1918 2 The applications of the following banks for Capital 1,190,000 The foregoing statement shows the aggre- permission to act under section 11-k of the gate of increased capital for the period of Federal Reserve Act have been approved by the banks embraced in statement was..... 8,360,000 the Federal Reserve Board during the month Against this there was a reduction of capiof February, 1920. tal owing to liquidation (other than for consolidation with other national banks under the act of June 3, 1864), and DISTRICT No. 2. reductions of capital of 425,000 Trustee, executor, administrator, registrar of stocks and bonds, guardian of estates, assignee, receiver, and com- Net increases 7,935,000 mittee of estates of lunatics: City National Bank, Perth Amboy, N. J. Farmers National Bank, Adams, N. Y. Commercial Failures Reported. National Bank of Fredonia, Fredonia, N. Y. Lackawanna National Bank, Lackawanna, N. Y. Notwithstanding the fact that the coun- Second National Bank, Oswego, N. Y. try's business mortality at this period last DISTRICT NO. 4. year was relatively moderate, this year's Trustee, executor, administrator, registrar of stocks and insolvency returns disclose continued reducbonds, guardian of estates, assignee, receiver, and tion, commercial failures reported to K. 6. committee of estates of lunatics: Dun & Co. during three weeks of February First National Bank, Pittsburgh, Pa. numbering 367, against 446 in the same Trustee, executor, administrator, registrar of stocks and bonds, guardian of estates, receiver, and committee of weeks of 1919. Moreover, the statement for estates of lunatics: January, the latest month for which complete Traders National Bank, Mt. Sterling, Ky. figures are available, reveals only 569 defaults Newport National Bank, Newport, Ky. for $7,240,032 of liabilities, as contrasted Trustee, executor, administrator, registrar of stocks and with 673 reverses, involving $10,736,398 in bonds, guardian of estates, assignee, and receiver: Bank of Athens, N. B. A., Athens, Ohio. January, 1919. Comparing with the 2,848 National Bank of Commerce, Lorain, Ohio. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MARCH, 1920. FEDERAL RESERVE BULLETIN. 275 DISTRICT No. 6. DISTRICT NO. 9. Executor, administrator, registrar of stocks and bonde, Trustee, executor, administrator, registrar of stocks and guardian of estates, assignee, receiver, and committee bonds, guardian of estates, assignee, receiver, and comof estates of lunatics: mittee of estates of lunatics: First NationalJBank, Vermillion, S. Dak. Georgia National Bank, Athens, Ga. DISTRICT NO. 10. DISTRICT No. 7. Trustee, executor, administrator, registrar of stocks and bonds, guardian of estates, assignee, receiver, and com- Trustee, executor, administrator, registrar of stocks and mittee of estates of lunatics: bonds, guardian of estates, assignee, receiver, and com- Trinidad National Bank, Trinidad, Colo. mittee of estates of lunatics: First National Bank, Columbus, Nebr. National Bank of the Republic, Chicago, 111. American National Bank, Enid, Okla. Peoples National Bank, Jackson, Mich. Guardian of estates, assignee, receiver, and committee of DISTRICT NO. 12. estates of lunatics: First National Bank, Logansport, Ind. Trustee, executor, administrator, registrar of stocks and Second National Bank, Saginaw, Mich. bonds, guardian of estates, assignee, receiver, and committee of estates of lunatics: Yakima National Bank, Yakima, Wash. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

276 FEDERAL RESERVE BULLETIN. MARCH. 1020. RULINGS OF THE FEDERAL RESERVE BOARD. Below are published rulings made by the In a ruling printed on page 467 of the May, Federal Reserve Board which are believed to 1919, Federal Reserve Bulletin it was stated that although a Federal Reserve Bank may be of interest to Federal Reserve Banks and properly collect such notes and bills for member banks: another Federal Reserve Bank, nevertheless this service can not be rendered directly for Warehouse acceptances covering goods under contract for sale and delivery at a remote period. any member bank located outside of its own district. As stated in that ruling the only Although a national bank may accept collection service which a Federal Reserve drafts drawn upon it having not more than six Bank may perform directly for any member months' sight to run which are secured at the bank located outside of its district is that of time of acceptance by a warehouse receipt collecting checks and drafts drawn upon memconveying or securing title covering readily ber banks located within its district. marketable staples, nevertheless, such an The question now under consideration is acceptance must not be made subject to any whether a Federal Reserve Bank may collect renewals. maturing notes and bills drawn upon firms, [See opinion of General Counsel in Law Department.] individuals, or corporations which are located within its district but which are not member banks when such notes and bills are forwarded Limitation upon the aggregate rediscounts of the paper to it for collection by a member bank of of one borrower made for different member banks. another district for the account of the Federal Reserve Bank of that other district. A Federal Reserve Bank may properly The Board is of the opinion that this service decline to discount for a member bank the may be performed by a Federal Reserve Bank paper of any one borrower on the ground that at its own option whenever it has received the Federal Reserve Bank has theretofore satisfactory advice that the Federal Reserve discounted for other member banks what it Bank for whose account the collection is deems to be a sufficient amount of that parbeing made has authorized its member bank ticular borrower's paper. to act as its agent in forwarding maturing [See opinion of General Counsel in Law Department.] items of this character for collection and credit to its account. It is immaterial whether the authority to act as agent is specific as to Collection of maturing items for the account of another the particular member bank or whether it is Federal Reserve Bank. general as to all member banks of the Federal The Federal Reserve Board has been asked Reserve Bank for whose account the collection to rule upon the question whether a Federal is being made. Reserve Bank may receive for collection It is believed that the development of this maturing notes and bills drawn by or upon practice may be found to be an advisable firms, individuals, or corporations (not mem- extension of the collection facilities of the ber banks) located within its own district if various Federal Reserve Banks. If adopted such notes and bills are forwarded to it for it will no doubt permit of a considerable saving collection by a member bank in another of time and expense which otherwise would district for the account of the Federal Reserve result as an incident to the indirect routing of Bank of that other district. maturing items. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MARCH, 1920. FEDERAL RESERVE BULLETIN. 277 LAW DEPARTMENT. The following opinions of General Counsel terms of this section unless the goods covered have been authorized for publication by the by the warehouse receipt are being held in Board since the last edition of the BULLETIN: storage pending a reasonably immediate sale, shipment, or distribution into the process of Warehouse acceptances covering goods under contract manufacture. Any draft, therefore, which is for sale and delivery at a remote period. drawn to carry goods for speculative purposes, Although a national bank may accept drafts drawn upon or for any indefinite period of time without the it having not more than six months' eight to run which are purpose of sale, shipment, or manufacture secured at the time of acceptance by a warehouse receipt conveying or securing title covering readily marketable within a reasonable time, should not be constaples, nevertheless, such an acceptance must not be made sidered eligible. It would be merely a cloak to subject to any renewals. evade the restrictions of section 5200, Revised This office has been asked for an opinion on Statutes. the question whether a national bank may, While there can be no element of speculation under the following circumstances, accept a in the present case, since the sale price is predraft secured at the time of acceptance by ware- determined by existing contracts, nevertheless house receipts or other such documents convey- it is not Believed that any draft secured by ing or securing title covering readily market- warehouse receipts should be accepted subject able, nonperishable staples. to an agreement by the accepting bank to make The facts presented for consideration indi- renewals. Congress, in expressly permitting cate that the drawer owns certain readily the acceptance of drafts for the purpose of marketable, nonperishable staples which are carrying readily marketable staples in storage, under contract for sale upon terms calling for apparently contemplated that a six months' payment upon delivery. In some instances period would cover all reasonable contingenthe deliveries are to be made in the immediate cies requiring a banker's acceptance credit for future, but others are to be made over a period that purpose; that is, the orderly marketing of eight months. In order to carry the goods of staples which, by hypothesis, must be readily pending delivery to and payment by the marketable. buyers the owner of the goods desires to draw If the borrower needs funds for a period 90-day drafts secured by warehouse receipts longer than six months he may properly borrow and other such documents covering the goods upon his direct note secured by the readily marto be sold. It is contemplated that a small ketable staples, subject to the limitations of portion of the acceptances shall be renewed for section 5200, Revised Statutes, but the facili- 90 days and that a still smaller portion shall be ties afforded by Congress, under the provisions renewed for an additional 60 days. of section 13 of the Federal Reserve Act, to Under the terms of section 13 a member bank provide a liquid credit to carry readily marketmay accept drafts drawn upon it having not able goods temporarily in storage pending a more than six months7 sight to run which are reasonably immediate sale, shipment, or dissecured at the time of acceptance by a ware- tribution into the process of manufacture, house receipt or other such document conveying should not be abused for the purpose of proor securing title covering readily marketable curing funds for any other purpose. staples. The Federal Reserve Board in a The fact that the goods are under contract ruling published on page 858 of the September for sale and delivery eight months hence, even (1919) BULLETIN has expressed the opinion though eliminating the element of speculation, that no draft secured by a warehouse receipt is not a reason which is sufficient to controvert should be eligible for acceptance under the the principle defined above, for, if so all of the ; Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

278 FEDERAL RESERVE BULLETIN. MARCH, 1920. many seasonal or annual contracts for future bank the paper of any one borrower on the deliveries by installments might conceivably be ground that the Federal Reserve Bank has financed by warehouse acceptances It could theretofore discounted for other member banks not have been contemplated by Congress that what it deems to be a sufficient amount of that accumulated stock on hand to be disposed of particular borrower's paper. at any such remote, though definite period, There does not seem to be any question that should be financed by warehouse acceptances both the letter and the spirit of the law give subject to renewals. To permit the seller to to the Federal Reserve Bank discretion in the finance the holding of the goods pending matter of its discounts, and even admitting that delivery at such a remote period would not a reserve bank is not a commercial bank in the in substance be different from permitting the ordinary sense, it is both lawful and proper purchaser himself to hold the goods in storage for it to place an aggregate limit on the amount an indefinite time pending either resale or of paper for any one borrower which it will distribution into the process of manufacture. discount for all of its member banks. The The Board has heretofore ruled that the pur- sole fact that the Federal Reserve Bank may chaser of goods can not properly finance the have discounted for one or more of its member holding of those goods in storage by renewal banks some of the paper of a particular borrower acceptances pending any such remote use. should not, and can not, bind it to rediscount [See opinion, page 66 of the January, 1920, all of the paper of that borrower that may in FEDERAL RESERVE BULLETIN.] The same the future be presented by the same or other principle is applicable to the case under member banks. consideration, Section 4 of the Federal Reserve Act pro- If, however, a borrower wishes to procure an vides in part that the board of directors of acceptance credit for the purpose of carrying each Federal Reserve Bank— goods in warehouse pending a sale which is shall administer the affairs of said bank fairly reasonably contemplated within three months, and impartially and without discrimination in he may, of course, procure a bankers' accept- favor of or against any member bank or banks, and shall, subject to the provisions of law and ance for that period, and in the event that for the orders of the Federal Reserve Board, extend some unforeseen reason the sale does not to each member bank such discounts, advancematerialize within that time another new ments, and accommodations as may be safely acceptance may be procured, but this second and reasonably made with due regard for the acceptance must not have been contracted for claims and demands of other member banks. in advance as a renewal of the original accept- Although this section provides that the Fedance and should not be granted unless it eral Reserve Bank shall not discriminate against conforms to the terms and conditions applicable any member bank, it can not be supposed to an original acceptance. that a general policy of declining to receive more than a certain proportion of the paper of Limitation upon the aggregate rediscounts of the paper a borrower is of itself a discrimination. It is of one borrower made for different member banks. a general and conservative policy applicable to all member banks alike. A Federal Reserve Bank may properly decline to dis- Furthermore, the latter part of the clause count for a member bank the paper of any one borrower on the ground that the Federal Reserve Bank has there- quoted imposes upon the Federal Reserve Bank tofore discounted for other member banks what it deems an obligation to make only those discounts to be a sufficient amount of that particular borrower's which "may be safely and reasonably made." paper. The length of the line of any one particular The opinion of this office has been asked on borrower appears to be a pertinent considerathe question whether a Federal Reserve Bank tion in determining both the safety and reasonmay properly decline to discount for a member ableness of a discount. . Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MAKCH, 1920. FEDEBAL BESERVE BULLETIN. 279 WHOLESALE PRICES ABROAD. importance in this connection. During January the rate of exchange on London, New York, Tables are presented below showing the Holland, Norway, Sweden, Switzerland, and monthly index numbers of wholesale prices of Spain was increasingly unfavorable. some of the leading countries of the world com- The coal shortage has resulted from the diffiputed on the basis of prices in 1913 = 100. culty of obtaining coal from Belgium, reduced In all cases except that of the United States imports from England, the lack of shipments the original basis upon which the index num- from Germany, strikes of sailors, and of dock ber has been computed has been shifted to hands at Rouen, and the scarcity of freight cars. the 1913 base. The monthly and yearly Minerals other than coal have likewise increased index numbers are therefore only approximate. in price during the month and considerable ad- These index numbers are constructed by the vances were made in steel prices. various foreign statistical offices according to The most striking advance in food prices methods described in the January BULLETIN. occurred in sugar, where the Government sub- The January figures are subject to correction. sidy was removed toward the end of December. The latest figures show that prices continued New prfces are over 50 per cent higher than the to rise in January in all countries for which we subsidized price. have index numbers for that month. The rate of increase was more rapid both in the United Index numbers of wholesale prices (all commodities). States and England than during the preceding [1913=100.] month. The January index number for France, 1 received by cable, ii correct, shows the enor- Ja- Austra- I Cant m w M o s h t n i a o e a s e t u r y e e e s m m c t a o a o o e p d n n n p A v t t t i h e a n u m a . n u g r c a e e u e d d d I s e n t o , t o t i f J n o 1 a 6 r 9 t p i 0 b h 1 s a e e 9 e p n . , l o o a f a i s o n n T n t t r d h s B t e S h U C i w n e i L a n e L n d t d d E h a e e e T c d e x n I l a N i n c n c p o u e t o r u h . m n i r c a f s b e t i e r I e s p m t r a o r l s i i l f c k t i f a h e e o t n s - e h r e o t B U S i S q t f c i u t u t n o s a L a r o i n t t e ( t a t e i s 3 e a a b s s ) 2 d u - - . ; o 8 r K m d t S c U t i o ( o i t i e e o 4 n s n a m m d s d t 5 i t g ) - - i - ; . - - B F G S a m t t d c r u l i t i e e a o q a e e o l n n m l t s u l d ( e i e a c ) 4 e - s i t . r e - 5 i - - n ; B I m t P c t i ( o a e a r o 4 m o c s l d 0 y h f ) i - . . ; - i S d c O w e i f a n f e i l , - - . m o B t p c p k i T f ( o f a e a o o a 5 y o m J n s n n d r 6 o - a ) ; k i - . - - l ( a B i C w 9 t a m n m t i u 2 e i e s ; d e o n r o t a c e s i s d C n l S o c ) a t u i t o - . m s h u - a s m - - - j | t p o i m ( D q b o a 2 t a f e a u L o n 7 d e r - - o t s r n a 2 a - ) - t ; - . prices increased considerably during November and December, 1913 100 100 100 100 100 100 100 100 In England the most striking advance oc- 1914 100 101 102 95 116 95 106 101 1915 101 126 140 133 145 97 147 110 curred in the mineral group, considerable in- 1916 124 159 187 202 185 117 138 135 creases occurring in the price of export coal, 1917 . . 174 206 262 299 244 149 153 177 1918 197 226 339 413 197 178 206 tin, and iron; increases were likewise felt in 1919. sugar and in textiles, the rise in the price of January... 203 224 348 328 369 214 U77 212 silk being especially marked. In Canada food February. 197 220 340 323 358 213 207 March 201 217 337 326 354 206 205 products, with the exception of dairy products, April 203 217 332 330 339 207 206 May 207 229 325 337 333 215 210 advanced in price. Commodities used for cloth- June 207 235 329 355 324 228 210 ing as well as those in the construction group July 219 243 349 359 320 247 218 August.... 226 2.50 347 367 321 251 223 likewise advanced. September 221 253 360 369 257 223 October... 223 264 382 387 271 222 In France the rise in prices is apparently November 230 272 405 435 280 227 mainly due to the increasing scarcity of such December. 238 276 417 455 288 240 raw materials as silk, cotton, and pig iron, and 1920. January... 248 288 487 301 248 the alarming shortage of coal. The unfavorable exchange situation is likewise of primary i Quarter. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

280 FEDERAL RESERVE BULLETIN. MARCH, 1920. Group index numbers— United States Bureau of Labor Statistics. [1913=100.] Date. Farm Food, etc. Cl a o n t d hs Fuel andan M d e m ta e l t s al Miscellaproducts. clothings.lighting. products. neous. 1913 100 100 100 100 100 100 100 100 1914 103 102 98 96 88 98 101 1915 106 105 99 92 94 94 109 1916 119 124 123 114 142 100 157 117 1917 189 178 181 175 208 124 198 153 1918. 219 191 240 163 181 152 221 192 1919. January 222 209 234 170 172 161 191 212 February 218 197 223 169 168 163 185 208 March 228 205 216 168 162 165 183 217 April 235 212 217 167 152 162 178 216 May 240 216 227 167 152 164 179 213 June 231 206 258 170 154 175 174 212 July 246 218 282 171 158 186 171 221 August 243 228 303 175 161 209 172 225 September 226 212 306 181 160 229 173 217 October... 230 211 313 181 161 231 174 220 November 240 219 325 179 164 236 176 220 December 244 234 335 181 169 253 179 220 1920. January 246 253 350 184 177 268 189 227 Group index numbers— United Kingdom Statist. [1913-100.] I Date. f V t o a e o b g d l e e s - . A fo n o im ds a . l S co t u e f g f a e a . e r , , s F t o uf o f d s - . Minerals. Textiles. Sundries.Materials. 1913 100 100 100 100 100 100 100 100 1914 110 100 107 105 90 97 105 98 1915 155 125 130 137 109 111 131 119 1916 193 152 161 169 140 152 163 153 1917 252 192 212 218 153 228 213 198 1918 248 210 229 167 265 243 225 1919. January 249 226 221 234 159 246 246 218 February 250 226 221 235 156 242 235 212 March 240 205 238 224 154 235 246 213 April 243 206 228 224 154 239 243 213 May 244 208 236 226 177 253 258 230 June 246 208 243 229 182 258 271 239 July 244 208 275 231 202 256 284 250 August 254 208 318 242 206 272 283 254 September 258 208 327 244 206 286 279 257 October 260 226 322 253 222 305 284 270 November 266 226 331 258 226 325 292 280 December 228 335 260 234 334 296 1920. January 274 230 356 265 256 343 312 302 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

281 MARCH, 1920. FEDERAL RESERVE BULLETIN. Group index numbers—France and Italy. France, Bulletin delaStatistique Italy,1 Prof. Bachi Generale. [1913=100.] [1913=100.] Date. F ( o 2 o 0 d ). s Ma (2 te 5 r ) i . als C m a e e n r a e d t a s l . s s O f t o u t o h f d f e s - r . Textiles. M m i a e n n t e a d r l a s l . s g O o t o h d e s r . 1913 100 100 100 100 100 100 100 1914 104 101 102 84 96 100 96 1915 131 145 132 93 113 207 133 1916 167 206 156 135 184 380 197 1917 225 291 215 171 326 596 266 1918 281 387 1919. January 313 376 304 300 330 306 422 February.. 316 360 300 307 328 306 3S4 March 337 337 292 312 331 355 362 April 336 330 294 330 333 358 349 May 319 330 293 336 375 366 340 June 313 344 320 343 381 419 33 fi July 338 358 334 331 401 420 342 August 323 367 332 351 423 421 341 September. 334 381 319 354 430 446 342 October 353 405 326 364 500 465 341 November. 369 435 328 371 634 568 351 December.. 375 458 338 373 658 584 405 1920. January... 440 525 1 Group index numbers January-September, 1918, not available in this country. Group index numbers—Sweden, official. [1913=100.] Raw Date. I Ve f g o e o t d a . ble A f n o i o m d. al m f c o u a r t l e t a u r g i r a r e i l . - s Coal. Metals. m Bu a i t l e d r i i n al g . P p a u p lp e . r le H a a i n t d h d e e s r. 1913-14 100 100 100 100 100 100 100 100 19141 136 101 114 123 109 104 118 1915 151 140 161 177 166 118 116 158 1916 152 182 180 266 272 165 233 229 1917 181 205 198 551 405 215 267 206 1918 221 419 304 856 398 275 300 395 1919. January 276 483 356 810 373 293 323 208 February 276 448 356 784 341 293 323 208 March 276 438 356 814 317 288 323 174 April 276 423 367 769 287 288 323 172 i Average for the six months ending Dec. 31, 1914. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

282 FEDEKAL RESERVE BULLETIN. MARCH, 1920. Group index numbers—Canadian Department of Labor.1 Pate. f G o r a d a n d i d e n r s . A m n e a i a n m t d a s l . s pr D o a d i u r c y ts. t F v a r a e b u n g l i d e e t s - s . f O o t o h d e s r . Textiles. l H e i a e d t t h c e e . s r , , Metals. I m m e p n l t e s - . m B l a u t u i e m l r b d i e a i r l n . s g , lig F a h u n t e d i l ng. c D h c a r a e n u l m d s g i . s - 1913 100 100 100 100 100 100 100 100 100 100 100 100 1914 114 107 100 99 104 102 105 96 101 100 94 106 1915 136 104 105 93 121 114 110 128 106 97 92 160 1916 142 121 119 130 136 148 143 167 128 100 113 222 1917 206 160 149 233 180 201 168 217 174 118 163 236 1918 231 195 168 214 213 273 169 229 213 147 188 250 1919. January 198 191 191 206 223 293 171 204 229 154 209 240 February 192 191 178 188 218 281 162 189 229 155 202 233 March 199 196 171 189 219 282 162 172 229 156 199 212 April .... 217 209 184 198 213 284 166 162 223 153 206 210 Mav 231 213 181 209 213 277 202 162 223 153 192 208 June 238 213 179 221 215 274 211 161 226 158 194 197 July 240 216 186 200 218 278 235 166 226 168 194 195 August 243 215 189 210 224 277 260 171 228 170 199 196 September... . 232 201 193 195 227 282 256 171 231 183 200 197 October 232 180 204 178 228 289 252 165 225 188 201 198 November 240 175 221 240 230 298 252 171 232 194 201 181 December 251 182 230 240 232 306 231 181 232 224 209 190 1920. January 268 195 228 265 245 316 237 191 235 232 212 191 1 Unimportant groups omitted. WHOLESALE PRICES IN THE UNITED asked price is now used, and in the case of the STATES. Portland quotation of wheat flour the discount of i per cent is deducted. Index numbers for In continuation of figures shown in the January are provisional, due to the fact that February BULLETIN there are presented below certain data were not received in time to render monthly index numbers of wholesale prices for them available for use in the calculations. the period July, 1919, to January, 1920, com- A further increase in wholesale prices is pared with like figures for January of previous noted for the month of January. The general years; also for July, 1914, the month imme- index number of the Bureau of Labor Statistics diately preceding the outbreak of the great war. advanced from 238 for December to the new The general index number is that of the record figure of 248. Increase occurred in the United States Bureau of Labor Statistics. In index numbers for each of the three principal addition there are presented separate numbers groups of commodities, and each again estabfor certain particular classes of commodities lishes a new record for the group. The increase in accordance with plans announced in pre- is again greatest in the case of producers' vious issues of the BULLETIN. goods, namely, 7.4 per cent, from 228 to 245. Quotations for eastern spruce have been Decrease in price occurred only for a small omitted. On the other hand, quotations for number of the commodities included in the worsted yarns (2-32s, crossbred), butter (prime group, among which may be mentioned harness firsts, San Francisco), bananas (Jamaica 8s, oak and sole hemlock leather, linseed oil, jute, New York), ginghams (Lancaster, 6.50 yards rubber, and oleo oil. These decreases by no to pound), and starch (laundry, New York), means offset increases in price for an extended which had been dropped temporarily, have been list of commodities, including cotton and secured for the months of December and Janu- worsted yarns, and cotton thread, various metal ary, and the commodities were again included products, such as bar iron, steel billets, plates in the calculation of the index numbers for the and rails, nails, copper wire, lead pipe, and latter month. Several substitutions have been cast-iron pipe, resin, turpentine, shingles, lime, made, namely, of gun metal, plain toe, single cement, brick, carbonate of lead, and glass, sole, kid lace, McKay sewed, for button shoes lubricating oil and gasoline, various chemicals, of otherwise similar description, and likewise in particular grain and wood alcohol, glycerin with similar Goodyear welt shoes, of Bigelow and soda ash, and bran, tallow, and sugar f Axminster for Lowell Axminster carpet, and (96° centrifugal). of quartered oak rockers with wooden seat for Least among the increases in the index plain oak rockers. For bar silver, the average numbers for the three principal groups of com- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MARCH, 1920. FEDERAL RESERVE BULLETIN. 283 modities is that shown by the number for the least for the farm products subgroup, from 288 group of raw materials, namely, 2.4 per cent, to the new record figure of 290, or 1 per cent. from 233 to 239. The index number for each Decreases in the prices of barley, cotton (New of the subgroups included under this head has York quotation), and spring wheat were more likewise increased. The number for the forest than offset by increases in the prices of cotton products subgroup now stands at 273, an in- as quoted at New Orleans, corn, oats, rye and crease of 14 points or 5.3 per cent over the winter wheat, flax, timothy, and alfalfa. previous record of the month of December, due The index number for the group of conto increases in the prices of Douglas fir, hem- sumers' goods now stands at 258, an increase of lock, maple, white oak, and poplar. No com- 13 points, or 5.3 per cent, over the figure for the modities included in the subgroup decreased in month of December. Decrease in price ocprice. An increase of 2.4 per cent, from 186 to curred in the case of butter, eggs, lemons, 190, occurred in the index number for the prunes and oranges, corn meal, fresh beef, mineral products subgroup. Decreases in the bacon, mess beef and pork, oleomargarine prices of various classes of bituminous coal and and rice, but were more than offset by coke were more than offset by increases in the increases in the prices of flour, hams, lard, prices of copper, lead, tin and zinc, pig iron, lamb, mutton and poultry, coffee, molasses, and crude petroleum. The number for the olive oil, peanuts, potatoes, sugar, onions animal products subgroup increased from 209 and cottonseed oil, various classes of shoes, to 214, or 2.3 per cent. Decreases in the prices denims, drillings, ginghams, hosiery, print of steers and packer hides did not offset in- cloths, sheetings, shirtings and underwear, creases in the prices of hogs, sheep and poultry, French serge, carpet, housefurnishings, and calfskins, silk and wool. The increase was wrapping paper. Index numbers of wholesale prices in the United States for 'principal classes of commodities. [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. tisticsindex number). July, 1914 102 106 97 91 93 103 100 January, 1915— 108 97 94 90 95 102 99 January, 1916.... 116 102 95 112 107 120 111 111 January, 1917 163 136 99 181 148 170 147 151 January, 1918— 242 176 130 172 184 181 193 185 January, 1919 234 208 147 179 196 196 216 203 July, 1919 261 233 166 177 214 202 230 219 August, 1919 251 235 193 180 218 212 241 226 September, 1919. 240 215 227 184 216 212 226 221 October, 1919. ... 254 212 234 184 220 211 228 222 November, 1919. 276 212 239 183 226 216 236 230 December, 1919.. 288 209 259 186 233 228 245 238 January, 1920— 290 214 273 190 239 245 258 248 In order to give a more concrete illustration figures for January of previous years; also of actual price movements there are also pre- for July, 1914, the month immediately presented in the following table monthly actual ceding the outbreak of the great war. The and relative figures for certain commodities of actual average monthly prices shown in the a basic character, covering the period July, table have been abstracted from the records of 1919, to January^ 1920, compared with like the United States Bureau of Labor Statistics e Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

284 FEDERAL RESERVE BULLETIN. MARCH, 1920. Average monthly wholesale prices of commodities. [Average price for 1913=100.] Corn, No. 3. W re h d e a w t, in N t o er . , 2, g C o a o t d t l t e o , c st h e o e i r c s e , , H h id ea e v s, y p n a a c t k i e v r e s', Chicago- Chicago. Chicago. steers, Chicago. Year and month. Average Rela- Average Rela- Average Rela- Average R , i Average Rela- Average Relaprice per tive price per tive price per tive price per ttve tive price per tive bushel. price. pound, i price, bushel. price. bushel. Price' ! pounds. price. pound. price. July, 1914 $0.7044 114 $0.1331 105 $0.8971 103 8210 83 $9.2188 108 $0.1938 105 January, 1915... .7056 115 .0783 62 ! 1.3527 155 3910 141 8.5333 100 .2300 125 January, 1916... .7356 120 .1205 95 ! 1.2894 148 2896 131 8.6650 102 .2300 125 January, 1917... .9753 158 .1735 137 i 1.9166 219 9024 193 10.5300 124 .3350 182 January, 1918... 1.6850 274 .3105 244 2.1700 248 1700 220 13.1125 154 .3280 178 January, 1919... 1.3750 223 .2850 224 2.2225 254 3788 241 18.4125 216 .2800 152 July, 1919 1.9075 310 .3377 266 2.6800 307 2580 229 16.8688 198 .4860 264 August, 1919.... 1.9213 312 .3125 246 2.5250 289 2394 227 17.6375 207 .5200 283 September, 1919 1.5410 250 .3078 242 2.5350 290 2385 227 16.8050 198 .4638 252 October, 1919... 1.3888 226 .3538 279 2.6250 301 2394 227 17.5938 207 .4820 262 November, 1919. 1.4875 242 .3963 312 ?.825O 323 2881 232 17.5000 206 . 4688 255 December, 1919. 1.4485 235 .3990 314 3.0300 347 4490 248 17.0750 201 .4100 223 January, 1920... 1.4750 240 .4035 318 2.9313 336 6338 267 15.9375 187 .4000 218 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 H ed I . Hem Y lo o c r k k , . New Y N e f e l l l w o o o w r Y in o p g i r , n k e . , s C to o v a t e i l d , , e a N w n e t w a h t r e Y a r c . o i r t k e, , Co r a u C l n , i n b o c i f t i n u m n m a i i n t n i e . o , us, Year and month. p A p r o v ic 1 u e e 0 n r 0 a p d g e s 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 - . p A M r v ic e e f r e a p e g e t e . r p R t r i e i v c la e e - . p A M r v ic e e f r e a p e g e t e . r p R t r i e i v c la e e - . l p A o r n i v c g e e r t a p o g e n e r . p R t r i e i v c l e a e - . s p A h r v i o c e r e t r a p t g o e e n r . p R t r i e i v c la e e - . July, 1914 $8.7563 104 $0.4444 94 $24.5000 101 $42.0000 $4.9726 98 $2.2000 100 January, 1915... 6.9875 83 . 5143 109 24.2500 100 41.0000 5.1767 102 2.2000 100 January, 1916... 7.1400 84 .6429 136 22.2500 92 39.5000 5.2639 104 2.2000 100 January, 1917... 10.6050 125 .8143 173 24.5000 101 41.5000 5.6899 112 4.5000 205 January, 1918... 16.2125 192 1.4545 309 30.5000 126 57.0000 128 6.5000 128 3.6000 164 January, 1919... 17.4125 206 1.1200 255 36.0000 149 63.0000 141 7.9500 157 4.1000 186 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 September, 1919 18.2100 215 1.2182 259 43.0000 177 95.0000 213 8.4020 166 4.5000 205 October, 1919... 14.7250 174 1.2634 268 44.0000 182 100.0000 224 8.4135 166 4.5000 205 November, 1919. 14.1438 167 1.2545 266 44.0000 182 100.0000 224 8.4273 167 4.1000 186 December, 1919. 13.6800 162 1.2545 266 48.0000 198 112.0000 251 8.4098 166 4.1000 186 January, 1920... 15.1250 179 1.2364 263 53.0000 219 112.0000 251 8.4291 167 4.1000 186 Copper, ingot, Lead, pig, Petroleum, crude, C t o a a s, l , N Po o c rf a o h l o k n . - Coke, v C il o le n . nells- e N le e c w tr o Y ly o t r i k c . , d N es e i w lv e Y ri o z r e k d . , Pen at n s w y e lv ll a s n . ia, Pig iron, basic. 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 long ton. price. short ton. price. pound. price. pound. price. barrel. price. long ton. price. July, 1914 $3.0000 100 $1.8750 77 $0.1340 85 $0.0390 89 $1.7500 71 $13.0000 88 January, 1915 2.8500 95 1.6250 67 .1300 83 .0380 86 1.4500 59 12.5000 85 January, 1916 3.0000 100 2.8750 118 .2288 145 .0550 125 2.2500 92 118100 121 January, 1917 6.0000 200 7.2500 297 .2960 188 .0750 170 2.8500 116 30.0000 204 January, 1918 4.4120 147 6.0000 246 .2350 149 .0684 155 3.7500 153 33.0000 224 January, 1919 4.6320 154 5.7813 237 .2038 130 .0558 127 4.0000 163 30.0000 204 July, 1919 5.1400 171 4.0950 168 .2150 137 .0561 128 4.0000 163 25.7500 175 August, 1919 4.2188 173 .2281 145 .0579 132 4.0000 163 25.7500 175 September, 1919. 4.5920 188 .2220 141 .0609 138 4.2500 173 25.7500 175 October, 1919.... 5.1400 171 4.8250 198 .2172 138 .0643 146 4.2500 173 25.7500 175 November, 1919.. 4.6320 154 5.9375 243 .2038 130 .0676 154 4.4375 181 28.3125 193 December, 1919.. 4.6320 154 6.0500 248 .1873 119 .0718 163 4.6000 188 34.6000 235 January, 1920.... 4.6320 154 6.0000 246 .1931 123 .0872 198 5.0625 207 37.7500 257 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MARCH, 1920. FEDERAL RESERVE BULLETIN. 285 Average monthly ivholesale prices of commodities—Continued. n C or o t t h to e 1 n r 0 n / 1 y . c a o rn ne s, s, h L e e m a l t o h c e k r , N s o o . l e 1 , . S P B t i e t e e t s l s s b b e u i m l r l e g e r t h , s . , S ta te n b e k u l , r p g P l h a it . t t e s s - , S h te e e a l r b r t u a h r i , g ls P h , . i o tt p s e - n W 2 o - r 3 s 2 b t ' e r s d e c d r y . o a s r s n - s, 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 tiye price per tive pound. price. pound. price. long ton. price. pound. price. long ton. price, pound. price. July, 1914 i $0.2150 97 $0.3050 108 $19.0000 71 $0.0113 $30.0000 100 | SO.6500 January, 1915 \ . 1650 j 75 19.2500 75 .0110 74 30.0000 100 i .6200 January, 1916 . 2100 95 .3250 115 32.0000 124 .0208 141 30.0000 100 j .8800 115 January, 1917 \ . 3400 154 .5700 203 63.0000 244 .0430 291 40.0000 133 ! 1.2500 161 January, 1918 l . 5363 242 .4900 174 47.5000 184 .0325 220 46.8000 156 j 2.0000 257 January, 1919 .5000 226 .4900 174 43.5000 169 .0300 203 57.0000 190 | 1.7500 225 July, 1919 .5912 267 .5300 188 38.5000 149 .0265 179 47.0000 157 ! 1.6000 206 August. 1919 . 6130 277 .5700 202 38.5000 149 .0265 179 47.0000 157 I 1.6242 209 September, 1919 . 5903 267 .5700 202 38.5000 149 .0253 171 47.0000 157 ! 1,7500 225 October, 1919 . 6111 276 .5700 202 38.5000 149 . 0261 176 47.0000 157 | 1.7500 225 November, 1919 .6648 300 .5700 202 41.3750 160 .0265 179 47.0000 157 ! 2.2000 283 December, 1919 .6986 316 .5700 202 46.4000 180 .0265 179 47.0000 157 2.2000 283 January, 1920 . 7271 329 .5600 199 48.0000 186 .0274 185 50.7500 169 2.2500 290 Flour, wheat, B g e o e o f d , n c a ar t c i a v s e s, Coffee, Rio No. 7. st 1 a 9 n 1 d 4 a -1 rd 91 p 7 a ,1 t 9 e 1 n 9 t ; s, Hams, smoked, Ill 1 u 5 m 0° i n fi a r t e i n te g s o t, il, Suga l r a , t e g d r , anusteers, Chicago. standard war, Chicago. New York. New York. 1918, Minneapolis. Year and month. Average Rela- Average Rela- | Average Rela- Average Rela- Average Rela- Average Relaprice per tive price per tiyye ppr ice pperj tive price per tive price per tive price per tiye pound. price. pound. pprriiccee , bbaarrrreell. price. pound. price. gallon. price. pound. price. I July, 1914 $0.1350 104 $0.0882 79 I $4.5938 100 1.1769 106 $0.1200 97 $0.0420 I 98 January, 1915... .1300 100 .0725 65 I 6.8563 150 .1538 ! 93 .1200 97 .0488 I 114 January, 1916... .1375 106 .0763 6.6438 145 .1588 ; 96 .1300 105 .0573 i 134 January, 1917... .1375 106 .0975 9.2105 201 .1945 j 117 .1200 97 .0662 ! 155 January, 1918... .1750 135 .0853 77 10.0850 220 .2950 ! 177 .1600 130 .0744 i 174 January, 1919... .2450 189 .1547 139 10.2750 224 .3494 ! 210 .1750 142 .0882 ! 207 July, 1919 .2075 160 .2303 207 12.1550 265 .3835 ! 230 .2050 166 .0882 ! 207 August, 1919.... .2350 181 . 2150 193 12.0063 262 .3838 ! 231 .2180 177 .0882 207 September, 1919 .2275 176 .1663 149 11.6200 254 .3480 209 .2200 178 207 October, 1919... .2290 177 .1650 148 12.0313 262 .2900 I 174 .2200 178 207 N D o ec v e e m m b b e e r r , , 1 1 9 9 1 1 9 9 . . . 2 2 3 3 5 5 0 0 1 1 8 8 1 1 . . 1 1 6 5 9 1 7 8 1 1 5 3 2 6 1 1 2 4 . . 9 0 5 2 0 5 0 0 2 3 8 0 3 6 ' I 1 1 7 7 2 4 . . 2 2 2 2 0 0 0 0 1 1 7 7 8 8 . . 0 1 8 0 8 8 2 5 I 2 2 0 5 7 4 January, 1920... .2320 179 .1628 146 14.4438 315 .2944 ! 177 .2240 182 .1537 I 360 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

DISCOUNT AND INTEREST RATES. In the following tables are presented actual discount and interest rates larly in low rates in the case of customers' commercial paper and of loans prevailing in the various cities in which the several Federal Reserve secured by prime stock exchange or other current collateral, in both high Banks and their branches are located during the periods ending January and low rates for commercial paper purchased in the open market, and m 15 and February 15, 1920. A complete description of the several types both low and customary rates for paper secured by Liberty bonds and cerof paper for which quotations are given will be found in the Septem- tificates of indebtedness. Comparison with rates prevailing during the ber, 1918, and October, 1918, FEDERAL RESERVE BULLETINS. Quotations period ending February 15, 1919, reveals the fact that present rates are for new types of paper will be added from time to time as deemed of higher in practically all centers and for practically all types of paper. interest. The increase is found in the greatest number of centers in the case of During the period under review, the pronounced upward movement in paper secured by Liberty bonds and certificates of indebtedness, although interest rates noted for some months past has continued in almost all cen- noted almost as frequently for collateral loans and for commercial paper purters. The increase is noted for practically all types of paper. Decreases chased in the open market. The increase occurs almost equally in the case in rates are very rare, and occur almost without exception in high or low of high, low, and customary rates, although for customers commercial paper rates. While remarked equally in high, low, and customary rates for inter- it is most frequently found in the low rates. Instances of decrease in rates bank loans and bankers' acceptances, the increase is found more particu- are very rare, and are confined largely to the low rates. Discount and interest rates prevailing in various centers. DURING 30-DAY PERIOD ENDING JAN. 15, 1920. Prime commercial paper. Ordinary Bankers* acceptances, Collateral loans—stock exchange loans to 60 to 90 days. or other current. customers nistrict. City. Customers. Open market. Interbank loans. loans. | recapts, certificates 3 d 0 a t y o s 9 . 0 m 4 o n to th 6 s, i 30 d a to y s 9 . 0 m 4 o n t t o h s 6 . Indorsed. Unindorsed. Demand. 3m™ths'| nS 3 S t h o hs 6 . o e fi d n n d e e ss b . t- H. L. C. H. L. C. H. L C. H. H. L. H. L. C. H. L. C. H. C. N N o o . . 2 1 . . . . . . . . B N o ew st o Y n ork i... 6 6 5 6 1 6 6 7 6 6 5 6 6 6 6 f 5-5* 5-5| 2 1 5 0 6 6 5 6 * 6 6 S 5- J 6 N N o o . . 4 3 . . . . . . . . C B Ph u le f i v f l a a e l d l o a e n l d phia.. 6 6 6 5 6 6 6 6 6 6 6 6 5 6 6 6 6 6 0a 5 6 1 0 5 K ^ aO 5 6 * 6 6 6 6 6 6 5 6 5 * 6 9 6 Pittsburgh 6 6 6 6 5| 6 6 5^ 6 6 6 5* .16 6 6 Cincinnati 6 51 6 6 5^ 6 6 6 6 .! 6 6 6 No. 5.... Richmond 6 6 6 6 5" 5J 6 6 5J .1 6 5J 6 Baltimore 6 5J 5-| 6 6 6 No. 6.... Atlanta 6 6 6 . 8 Birmingham.. 8 6 6 6 Jacksonville... 6 6 6 6 6 6 7 6 7 7 7 6 6 New Orleans.. 6 5 6 6 5 6 6 6J 6 6-6* 5 6-6JJ 7 6-6* 6-7 5-6 Nashville 6 5^ 51 i 6 6 6 51 No. 7.... C D h e i t c r a o g it o 6 6 6 6 5 5 ^ 5* •V 5| 6 6 6 6 I 6 5| 6 No. 8.... St. Louis 6 6 6 6 6 6 6 5^ 6 r 6 5i 6 Louisville 6 6 6 6 6 6 5 5" 5 • 6 s| 6 5§ 6 Memphis 6 bh 6 6 5£ 6 6 5i 6 5h 6 6 6 Little Rock... 6 5| 6 6 6 6 6 6 6 7 No. 9.... Minneapolis... 6 6 6 6| 6. 6 6 5* 6 41 5} 5| 7 8 No. 10... Kansas City... 5£ 5i 5-J 7 5 6 5 6 8 6 6-7 8 5J Omaha 6 6 6 6 6* 6- 7 6 6 5| 6 7 6 6 Denver 6 51 6 6 51 6 7 6 6 8 6 6 No. 11... Dallas 5£ 51 51f f f 6 6 6 10 6 8 El Paso 6 6 6 8 6 8 8 8 8 Houston 8 6 7 6 5 6 6 7 No. 12... San Francisco. 6 51 6 5* 5* 5i 6 5 5J 4| 5 5i 6 Portland 6 5 6 6 6 6 6 41 41-5 6 6 Seattle 61 51 6 8 6 6 7 51 6 6 6 6 6 Spokane 6 5* 5f 6 6 6 6 8 Salt Lake City. 6 6 6 7 6 7 7 ' i 1 Rates for demand paper secured by prime bankers' acceptances, high 6, low 4, customary 4-5f. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

DURING 30-DAY PERIOD ENDING FEB. 15, 1020. Prime commercial paper. Ordinary Bankers' acceptances, Collateral loans—stock exchange loans to District. City. Customers. Open market. In l t o e a rb n a s. nk 60 to 90 days. or other current. C lo a a t n tl s e . S w e r a c e r u c e e r h e ip o d t u s b s , e y s c b e u L o c s n u i t b d r o e e s m d r a t e y n b r d s y etc. certificates 3 d 0 a t y o s . 90 m 4 o n to th 6 s. 3 d 0 a t y o s . 90 m 4 o n to th 6 s. Indorsed. Unindorsed. Demand. 3 months. m 3 o t n o t h 6 s. of e d in n d es e s b . t- //. L. L. C. H. L. H. L. C. H. L.. CC.. H. L. L. a //. L. C. H. L. C. C. No. 1.... Boston 64, 6 6 6i 6 5 5i 5f 5| 5| 54 554. 10 8 6 No. 2.... New York i... 6i 6 6 5154,-6 6 4| 5i5| 6 f 6i-6 25 5i 7 Buffalo 6 Si 9 S 6 6 6 7 5 5 6 No. 3.... Philadelphia.. 64 6 02 6 6 54 5! 6} 6 54. 5 6 No. 4.... C Pi le tt v s e b l u an rg d h 64 6 6 6* 6 6 6 61 6 7 6 5 6 6 6 6 6 5i Cincinnati 7 6 6 7 6 7 6 7 7 7 6 7 6 7 No. 5.... Richmond 6£ 6 61 6* 6 61 6 5i 6 54. 7 Baltimore 6 6 6 6 62 6 No. 6.... Atlanta 6 5i 64. 64. 6i 8 6 6 8 6 6 6 Birmingham.. 8 6 6 8 6 6 8 6 8 6 6 6 6-7 51 6 Jacksonville... 6 6 6 7 6 6 7 6 7 7 6 7 8 6 6 7 7 New Orleans.. 7 6 6-64. 7 6 6-64. 7 54. 54,-64. 7 6 6-64. 8 6 6-7 6 6 6-7 5-64. Nashville 64.-7 6 6 No. 7.... Chicago 64 6 6 64. 6 6 61 5i-5| 6 *6 6 6 6 Detroit 6 6 6 6 6 6 6 6 No. 8.... St. Louis 5i 6 51 5 5 51 51 ? 7 6 6 Louisville 6 6 6 61 6 6 5 6 54. 5f 5i 6 6 6 6 6 Memphis 6 6 6 6 6 Little Rock... 6 6i 6 6 6 8 6 7 V No. 9.... Minneapolis... 6i 6i 6 64. 5§ 54. 5f 51 6 7 8 6i 7 6* 61 6* No. 10... Kansas City... 5i 6 5 6 7 8 5 6-7 8 6 6-7 8 6 6-7 6-7 Omaha 6 6 6 6i 6-7 7 6 6* 8 6 7 7 Denver 64 5 5 6 6 6 64. 8 5i 6 8 6 6 No. 11... Dallas 6} 51 51 5i 6 6 6 6 6 10 6 8 8 6 8 El Paso 6 6 6 6 6 8 8 6 8 Houston 61 61 61 61 I! f 6i 6i 6* 6 64. 8 6 6i No 12... San Francisco. 6 54. 54 6 6 54. 5i 6 5i 54. 6 6 54. 6 Portland 6i 5i i 5i 6 51 5 SJ 54. 6 8 6 6 Seattle 6i 51 51 6 6 6 7 5£ 6 7 5| 6 6 7 8 6 7 Spokane 6i 6 6 6 6 6 6 7 8 6 Salt Lake City. 6 6 6 6 7 8 7 8 8 7 7 8 7i 7 i Rates for demand paper secured by prime bankers' acceptances, high 6, low 51. to 00 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

288 FEDERAL RESERVE BULLETIN. MARCH, 1920. PHYSICAL VOLUME OF TRADE. January, 1919, issue contains a description of the methods employed in the compilation of In continuation of tables in the Februaiy the data and the construction of the accom- FEDERAL RESERVE BULLETIN there are pre- panying index numbers. Additional material sented in the following tables certain data will be presented from time to time as reliable relative to the physical volume of trade. The figures are obtained. Livestock movements. [Bureau of Markets.] I Receipts. Shipments. C c m a a l t a v t r l e k e s e , a t n 6 s. d 0 j \ | m Hm a a r r k k e e t ft s ifst . S m h a e r e k p e , t 6 s 0 . H m m o u a rs 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 C c m a a l a t v t r l e k e s e , a t 5 n s 4 . d m H a o r g k s e , 5 ts 4 . S m h a e r e k p e , t 5 s 4 . Horses and \ 1919. Head. Head. Head. Head. Head. Head. Head. Head. Head. \ Head. January 2,113,460 5,879,525 1,571,823 108,471 9,673,279 763,068 1,565,451 612,029 109,304 3,049,852 July.../. 2,007,266 2,998,836 2,177,942 48,691 7,232,735 706,813 963,662 997,338 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 i 3,674,172 September 2,377,054 2,401,677 3,810,441 140,848 8,730,020 1,150,183 860,614 2,466,937 135,724 i 4,613,458 October 2,989,090 3,144,831 3,605,198 124,497 9; 863,616 1,532,297 1,103,837 2,159,531 125,701 ! 4,921,366 November 2,680,042 3,775,589 2,751,421 140,192 9,347,244 1,374,452 1,308,095 1,597,007 134,679 ! 4,414,233 December 2,169,631 5,024,650 2,393,632 86,666 9,674.579 967,348 1,608,292 2,409,482 86,534 5,071,656 1920. ! January | 1,868,723 5,275,412 1,560,051 138,541 1,842,727 I 753,113 1,665,324 669,850 138,145 j 3,226,432 Receipts and shipments of live stock at 15 western markets. [Chicago, Kansas City, Oklahoma City, Omaha, St. J^ouis, St. Joseph, St. Paul, Sioux City, Cincinnati, Cleveland, Denver, Fort Worth, Indianapolis, Louisville, Wichita.] KECEIPTS. [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. I Relative. 1919. January 1,656,046 164 4,603,335 209 1,079,377 79 56,631 123 7,395,419 ! 160 July..." 1,527,881 152 2,411,539 110 1,558,767 114 37,866 82 5,536,053 ! 120 August 1,541,133 153 1,595,759 73 2,220,229 162 57,206 124 5,414,327 117 September. 1,871,042 186 1,704,944 78 2,890,831 212 88,283 192 6,555,100 I 142 October.... 2,317,487 230 2,160,079 98 2,405,511 176 79,240 172 6,962,317 I 151 November.. 2,046,664 203 2,715,955 124 1,743,189 128 84,018 183 6,589,826 i 143 December.. 1,650,315 164 3,785,870 172 1,589,237 116 53,453 116 7,078,875 i 153 1920. January '. l 1.400,031 j 139 3,912,449 178 j 1,035,591 90,662 • 197 6,438,733 ] SHIPMENTS. 1919. January 589,362 145 988,035 204 357,386 71 56,282 137 1,991,065 139 July 515,071 127 691,283 143 694,942 138 32,836 80 1,934,132 135 August 650,252 160 455,705 94 1,352,252 269 49,996 122 2,508,205 175 September.. 872,043 214 501,856 104 1,849,958 367 83,264 203 3,307,121 230 October 284 654,755 135 1,382,419 275 80,828 197 3,272,997 228 November.. '993! 148 244 788,107 163 945,992 188 78,889 192 2,806,136 195 December.. 686,325 169 1,003,682 207 682,439 136 55,831 136 2,428,277 169 1920. January. 548,841 135 1,026,763 212 403,382 80 90,630 221 2,069,616 144 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MARCH, 1920. FEDERAL RESERVE BULLETIN. 289 Exports of certain meat products. [Department of Commerce.] [Monthly average, 1911-1913=100.] Beef, canmed. Beef, fresh. an B d e e o f t , h p e i r c k cu le r d e , 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. t R iv e e la . - 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 la e » . 1919. January — 12,636,060 1,907 17,436,495 1,406 6,030,937 226 101,000,122 603 54,846,433 367 37,850,338 86 2,273,683 51 July 5,392,104 814 8,680,524 700 3,320,564 124 117,679,193 703 47,452,834 318 68,163,734 155 2,892,515 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 September . 1,213,709 183 7,285,951 587 3,523,887 132 57,179,511 341 18,209,239 122 36,960,364 84 2,792,439 63 October 1,793,784 271 31,178,216 2,513 3,402,422 127 56,462,312 337 13,090,972 88 41,016,518 93 3,804,290 86 November.. 1,393,238 210 15,694,002 1,265 2,997,652 112 65,288,694 390 16,844,285 113 42,106,339 96 4,934,696 HI December.. 1,886,835 285 6,061,769 489 3,135,069 117 58,982,754 352 15,688,297 105 63,645,722 145 4,125,550 93 1920. January 1,081,643 163 22,872,223 1,844 1,670,500 63 77,501,002 463 13,905,923 93 38,823,902 88 4,251,187 96 Receipts of grain and flour at 17 interior centers. [Chicago, Cleveland, Detroit, 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. Flour. Total fl^fr inand i Bushels. j ; R ti e v la e - . Bushels. I t R iv e e la . - Bushels. R ti e v l e a . - Bushels. R ti e v l e a . - BllShels. Bushels. R ti e v l e a . - Barrels. R ti e v l e a . - Bushels. R ti e v l e a . - 1919. January., 24,652,641 j 9128,731 128122,945,659 114 5>,, 615,054 507 8,943,782 125 90,888,523 1171,396,888 71 97,174,519 112 July 49,612,1151 18412,549; 56 25,233,109 125 35i,105,486 281 8,627,091 120 99,127,020 1271,572,420 80106,202,910 122 August... 80,714,559: 299 8,503, 38 29,774,582 147 3J;, 824,263 345 6,638,871 93129,455,557 166 21^,283,145 117131,738,702 152 Sept'ber.. 69,953,295; 26016,267, 72 26,721,030 132 5>,, 446,371 492 5,294,256 74123,682,097 159 3t], 073,034 ,510,750 159 October.. 51,006,164; 18912,490, 56 24,323,974 120 41],472,397 404 4,369,326 96,661,968 124 31,,468,787 177112,271,510 129 Nov'ber.. 35,729,832! 13314,606, 6517,699,925 88 2J,, 579,579 233 3,582,873 74,198,346 95 3!,, 541,957 181 90,137,153 104 Dec'ber... 30,582,779! 113 23,983, 10715,592,282 77 21.,876,636 260 3,769,859 76,805,213 99 22,!371,262 121 87,475,892 101 1920. ! I ! January.. 125,074,624 93;24,139,094j 108 20,925,941 104 4,378,610 396 3,298,544 46 77,816,813 100 2,298,692,! 117 88,160,927 102 i Flour reduced to its equivalent in wheat on basis of 4J 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. Total f l g ou 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. R ti e v l e a . - Barrels. R ti e v l e a . - Bushels. R ti e v l e a . - 1919. January. 9,934,531 6413!,,'488,569 9519,769,237 130 794,028 112 4,718,631 121 48,704,996 99 2,796,463 83 61,289,080 95 July 12,423,422 81 8,102,275 5715,628,503 10311,546,100 218 9,133,000 234 46,833,304 95 2,589,176 76 58,484,596 90 August.. 36,986,491 240 5,135,459 3617,919,623 1181,436,377 203 5,028,674 129 66,506,624 135 3,805,273 112 83,630,353 129 Sept'ber. 37,730,048 245 6,622,779 4716,651,580 110 2,317,740 327 2,943,167 75 66,265,314 1'"3144 4,787,300 141 87,808,164 136 October. 25,813,130 167 7,116,502 5016,705,015 1101,426,528 202 3,087,951 79 54,149,126 110) 5J,975,261 176 81,037,801 125 Nov'ber. 20,877,718 1356,609,629 4715,582,081 103 3,110,541 439 2,827,956 73 49,007,925 ) 5,604,616 165 74,228,697 115 Dec'ber.. 17,383,075 11311,509,719 8112,433,716 82 2,255,139 319 2,624,376 67 46,206,025 93 4,470,122 132 66,321,574 103 1920. January. 17,514,087 114 12,326,051 87 15,822,099 104 3,685,914 52 2,007,718 51 51,355,869 104 4,140,314 122 69,987,282 108 Flour reduced to its equivalent in wheat on basis of 4J bushels to barrel. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

290 FEDERAL RESERVE BULLETIN. MARCH, 1920. 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. Total f l g o r u a r i . n * and Bushels. t R iv el e a . - Bushels. I I R ti e v l e a . - Bushels. t R iv el e a . - Bushels. t R iv el e a . - Bushels. R tiv el e a . - Bushels. t R iv el e a . - Barrels. t R iv el e a . - Bushels. t R iv el e a . - 1919. January. 9,768,801 78 1,411,366 40 9,275,187 195 566,191 398 1,738,326 105 22,759,871 1002,026,246 194 31,877,978 119 July 5,806,227 46 901,8421 25 6,959,186 1461,[,479,951 1,042 9,723,852 586 24,871,058 1101,514,135 14531,684,666 116 August.. 26,902,757 214 815,1321 23 5,676,984 119 " 64,510 45 4,993,395 301 38,452,778 1691,385,762 133 44,688,707 163 Sept'ber.. 28,010,858 222 512,072 14 5,345,464 113 535,701 377 2,171,521 131 36,575,616 1612,306,213' 221 46,953,575 171 October.. 14,755,827 117 507,065 14 4,335,038 911:, 718,701 1,210 796,839 48 22,113,470 972,521,3291 24133,459,451 122 Nov'ber. 9,152,534 73 438,147 12 3,998,525 84 I[!,391,024 851,651 51 15,831,881 701,552,796! 149 22,819,463 83 1 Flour reduced to its equivalent in wheat on basis of 4 J 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. 1919. January 15,365,491 645,317 5,495,937 1,972,696 3,047,346 26,526,787 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 September.. 21,171,440 172,254 1,901,510 516,142 4,061,830 27,823,176 October 25,322,242 82,240 1,898,271 483,270 3,079,360 30,865,383 November.. 18,728,730 155,490 2,504,833 1,264,494 2,351,012 25,004,559 December.. 1920. January. NOTE.—Figures for San Francisco include also stocks at Port Costa and Stockton. Cotton. [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 i n 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 ti e v l e a . - Bales. R ti e v l e a . - Bales. R ti e v l e a . - 1919-20. August 313,301 25 238,271 26 49,630 47 302,238 67 1,412,048 120 September 584,776 47 260,698 28 26,138 25 300,001 66 1,501,805 127 October 1,779,927 142 1,029,331 112 110,202 105 621,784 137 2,340,881 199 November 2,369,177 189 1,178,443 128 245,237 233 1,155,324 254 2,616,383 222 T)fip,ftrnVkp.r 2,147,365 171 1,069,693 116 242,940 231 1,214,337 267 2,765,040 235 January 1,460,074 116 982,030 107 138,685 132 802,841 177 2,470,496 210 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MARCH, 1920. FEDERAL, RESERVE BULLETIN. 291 California shipments of citrus and deciduous fruits. Total Oranges. Lemons. Total citrus fruits. deciduous fruits. Carloads. Relative. Carloads. Relative. Carloads. Relative. Carloads. 1919. January 3,120 128 531 131 3,651 128 109 July 2,568 105 1,038 256 3,606 127 4,199 August 1,785 73 436 108 2,221 78 6,601 September. 1,840 75 414 102 2,254 79 6,781 October 2,706 111 572 141 3,278 115 5,529 November. 3,257 133 442 109 3,699 130 2,141 December-. 3,592 147 271 67 3,863 197 1920. January. 2,457 100 630 156 3,087 108 123 Sugar. [Data of International Sugar Committee for ports of Boston, New York, Philadelphia, Savannah, New Orleans, Galveston, San Francisco.) [Tons of 2,240 pounds.] Raw stocks Raw stocks Receipts. Meltings. at close of Receipts. Meltings. at close of month. month. 1919. 1919. January. 243,806 197,145 66,189 November. 183,084 180,425 55,073 July., 394,557 435,247 115,341 December.. 73,504 113,917 14,587 August 333,686 356,048 85,650 September.. 352,345 385,618 55,644 1920. October 279,962 279,348 55,333 January., 243,201 221,984 36,055 [Data for ports of New York, Boston, Philadelphia.] [Weekly Statistical Sugar Trade Journal.] [Tons of 2,240 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. M M o el it t t i n n o g e s . j c ^ lo aw se s o to f c m ks o n at th. Rela- Rela- Rela- i Rela- Rela- Rela- Tons. tive. Tons. tive. Tons. tive. | Tons. tive. Tons. tive. Tons. tive 1919. 1919. ! January 172,054 93 147,000 80 36,544 21 November ! 154,674 84 177,000 96 40,855 24 July 264,782 144 292,000 159 57,975 34 December 96,342 52 126,765 69 10,432 6 August 246,419 134 229,000 125 75,394 44 September 262,137 142 292,000 159 45,531 26 1920. October 233,650 127 216,000 118 63,181 37 January 208,554 113 181,000 99 37,986 22 Naval stores. [Data for Savannah, Jacksonville, 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. Sp p ir e it n s t i o n f e t . ur- Rosin. Stocks at Stocks at Stocks at Stocks at I Receipts. close of Receipts. close of ! Receipts. close of Receipts. close of month. month. month. month. 1919. 1919. January 7,645 125,541 | 34,835 285,808 November 18,757 28,741 77,125 204,281 July 27,747 30,656 77,062 235,707 December 17,252 30,924 77,221 200,333 August 21,013 ! 24,756 ! 74,402 203,812 September i 21,574 27,021 ! 72,616 190,580 1920. October ! 19,367 27,389 ! 67,080 186,231 January 8,300 24,910 47,874 165,027 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

292 FEDERAL RESERVE BULLETIN. MAKCII, 1920. Lumber. [From reports of manufacturers' associations.] [M feet.] Southern pine. Western pine. Douglas fir. Eastern white pine. North Carolina pine. ! b N m e u r i l m l o s - f . Pr ti o o d n u . c- m S e h n ip ts - . N b m e u i r l m ls o - . f Pr t o io d n u . c- ents- j mills. Pr t o io d n u . c- m S e h n ip ts - . b N m e u r i l m l o s - f . Pr t o io d n u . c- m S e h n ip ts - . b N m e u r i ] m o Is f - . Pr t o io d n u . c- m Sh en ip t - s. 1919. January— 200 330,137 325,241 21,49 40,354 68,910 I 122 225,688 227,129 7,565 15,172 28,629 23,896 July 206 401,939 466,786 48 148,533 140,680 i 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 September. 202 416,640 372,727 51 154,102 138,537 i 126 332,905 261,797 16,913 22,574 33,146 35,468 October 201 421,025 356,124 52 156,828 143,252 ! 124 419,108 339,321 12,888 18,139 24,055 22,079 November. 202 391,347 344,717 51 110,525 117,472 ! 126 324,511 241,301 2,786 21,596 24,925 26,926 December.. 198 353,923 363,176 51 65,989 93,377 i129 227,331 176,935 4,776 17,840 19,048 26,241 1920. January.... 202 386,481 404,706 53 69,8985o I 144,180 j 128 327,568 | 344,568 21 38,007 | 63,614 24,678 26,283 RECEIPTS AND SHIPMENTS OF LUMBER AT CHICAGO. [Chicago Board of Trade.] [Monthly average, 1911-1913=100.] Receipts. Shipments. Receipts. Shipments. M feet. R ti e v l e a . - M feet. R ti e v l e a . - 1919. 1919. Januarv... 134,604 47,922 62 November 176,972 70,175 92 July..: 200,148 90,134 118 December 226,617 107 79,553 104 August 170,385 87,953 115 September 205,909 93,120 121 1920. October 208,638 95,674 125 Januarv 8,145 71,233 I 93 Coal and coke. [Bituminous coal and coke, U. S. Geological Survey; Anthracite coal, Anthracite Bureau of Information.] [Monthly average, 1911-1913-100.] Bi t p t i u r m o m d a i t u n e c o d t u i o s m n . c o o n al t , h e ly s- A m nt e h n r t a s c i o t v e er c o 9 a r l o , a s d h s i . p- Be d m e u h a c i t t v e i d e o n. m co on k th e, l y p es r t o i- - Short tons. Relative. Long tons, j Ilelative. Short tons. Relative. 1919. January ! 41,485,000 112 5,934,241 105 2,401,567 92 July : | 42,754,000 115 6,052,334 108 1,512,178 58 August I 42,880,000 116 6,144,144 109 1,733,971 66 September.. 47,403,000 128 5,687,401 101 1,790,466 6$ October 54,579,000 147 6,560,150 117 1,551,980 59 November. 20,303,000 55 5,971,671 106 1,680,775 64 December.. 36,612,000 6,138,460 109 1,721,000 66 1920. January. 49,419,000 133 5,713,319 102 1,982,000 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MARCH, 1920. FEDERAL RESERVE BULLETIN. 293 Movement of crude petroleum in United States. [U.S. Geological Survey.] [Barrels of 42 gallons each.] Marketed. Marketed. Stocks at end Stocks at end of month of month Barrels. Relative. (barrels)- Barrels. Relative. (barrels). 1919. November 32,114,000 168 131,601,000 January 30,196,000 158 127,777,000 December 32,508,000 170 129,022,000 July 33,894,000 177 140,093,000 August 33,862,000 177 136,467,000 1920. September 33,667,000 176 137,131,000 January 33,980,000 177 127,164,000 October 33,319,000 174 135,461,000 I Total output of oil refineries in United States. [Bureau of Mines.] | Crude oil run Gasoline Kerosene Gas and fuel Lubricating I (barrels). (gallons). (gallons). (gallons). (gallons). 1918. I December i 20,958,157 291,744,465 161,742,713 587,873,987 64,987,842 1919. ! January I 26,967,332 303,710,556 158,501,260 589,030,056 68,304,613 February I 25,232,876 283,518,194 164,181,787 553,853,753 62,503,072 March ! 27,866,775 311,306,755 170,290,930 574,774,156 67,063,995 April ; i 27,775,217 319,807,838 183,453,728 588,808,408 70,954,128 May ! 30,267,227 354,472,377 190,345,026 652,166,738 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 August i 32,362,057 326,846,167 219,502,888 085,702,461 72,920,214 September ! 32,601,044 339,582,564 199,244,293 683,409,074 70,236,692 October ! 33,682,968 363,456,747 227,104,346 080,158,440 78,658,410 November I 32,213,754 338,667,570 214,829,925 663,309,514 75,962,212 December ! 32,427,617 335,659,587 229,476,468 685,084,086 72,040,862 STOCKS AT CLOSE OF MONTH. 1918. Dec. 31. 15,749,771 297,326,983 380,117,829 659,001,357 138,853,574 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 15,106,361 546,062,429 294,677,623 749,067,806 165,495,254 Apr. 30 15,184,844 593,616,170 276,356,837 807,895,498 170,122,088 May 31 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 15,304,915 514,919,358 279,855,061 817,809,519 173,884,303 Aug. 31 15,131,549 434,531,446 296,065,646 830,329,785 170,572,819 Sept. 30 13,925,441 371,125,419 311,843,057 862,135,385 ! 158,967,070 Oct. 31 14,091,945 354,160,071 329,160, 795 828, 574,452 152,536,736 Nov.30 13,983,716 378,133,185 347,076,560 791,052,991 149,193,143 Dec. 31 13,143,285 446,793,431 339,319,690 714,124,455 137,318,934 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

294 FEDERAL RESERVE BULLETIN. MARCH, 1920. Iron and steel. [Great Lakes iron-ore movements, Marine Review; pig-iron production, Iron Age; steel-ingot production, American Iron and Steel Institute. [Monthly average, 1911-1913=100; iron ore, monthly average, May-November, 1911-1913-100.] Ir f L o r n o a - m k o e r s e . t s h h e i pm up e p n e ts r Pig-iron production. Steel-in t g i o o t n . produc- Un S a f t t i e l c l e e l l o d s e C o r o o d f r e p m r o s o r U a n t t . i h o S . n . Gross tons. Relative. Gross tons. Relative. Gross tons. Relative, j Gross tons. Relative. ! 1919. January 3,302,260 143 3,107,778 130 6,684,268 127 July........ 9,173,429 151 2,428,541 105 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 September.. 8,178,483 135 2,487,965 107 6,284,638 119 October.... 6,201,883 102 1,863,558 80 6,472,668 123 November.. 3,152,319 52 2,392,350 ! 103 7,128,330 135 December.. 2,633,268 114 8,265,366 157 1920. January. 3,015,181 130 2,966,662 123 9,285,441 176 Imports of pig tin. [Department of Commerce.] [Monthly average, 1911-1913-100.] Pounds. Relative. Pounds. Relative. 1919. 1919. January 8,461,444 November 15,233,671 1 168 July.... 113,120 1 December 12,940,125 142 August. 9,872,459 109 September , 11,087,403 122 1920. October 16,210,512 178 January 8,772,953 97 Raw stocks of hides and shins. [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 5,922,514 1,294,949 515,523 4,239,381 245,815 601,686 6,844,680 July 31 4,966,081 2,389,368 554,516 15,589,944 1,964,828 2,767,694 6,815,160 Aug. 31 5,498,844 2,145,320 585,269 18,263,446 880,276 2,348,769 7,126,885 Sept. 30 6,158,289 2,055,084 947,546 16,749,664 823,740 2,736,802 8,661,215 Oct. 31 6,436,765 2,007,208 1,097,039 15,302,942 2,239,604 2,574,499 10,122,930 Nov.30 6,918,534 1,844,737 1,088,173 14,248,671 331,389 2,684,084 9,398,712 Dec. 31 7,349,146 2,117,442 1,122,156 15,984,179 752,055 2,092,425 9,296,812 1920. Jan. 31 6,549,550 1,570,718 965,336 12,849,532 926,677 1,887,026 8,763,643 NOTE.— Figures for Jan. 31 are provisional. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MABCH, 1920. FEDERAL RESERVE BULLETIN. 295 Textiles, (Silk, Department of Commerce; cotton, Bureau of the Census; wool, Bureau of Markets; idle machinery, January-September, 1918, inclusive; National Association of Wool Manufacturers.] [Cotton, monthly average crop, years 1912-1914—100; silk, monthly average 1911-1913-100.J Percentage of idle woolen machinery on first of month to total reported. Cotton consump- Imports of raw silk. tion. Cotton spindles Wool con- Looms. Spinning spindles. active sumption during (pounds). month. th W an id 5 er 0- 5 U 0 n -i d n e c r h S c e a t r s d s o . f Combs. Bales. Relative. inch reed reed Woolen. Worsted. Pounds. Relative. space. space. 1919. January 556,883 124 33,866,228 32,573,970 40.3 32.6 32.2 30.7 36.5 37.5 1,461,827 71 July.... 509,793 113 34,184,407 54,973,093 22.0 26.0 9.7 7.6 8.9 13.5 5,202,407 254 502,536 112 34,187,310 48,938,476 22.1 24.9 9.4 6.5 8.9 10.9 3,802,500 186 September . 491,313 109 34,216,662 52,985,961 19.9 22.8 8.1 5.5 7.9 12.8 6,755,271 330 555,344 123 34,307,367 60,018,415 16.0 20.7 8.2 5.9 7.7 7.2 3,955,845 193 November 490,698 109 34,483,775 52,428,854 14.8 18.2 7.6 5.3 6.7 6.7 4,841,407 237 December 511,585 114 34,594,214 55,566,253 13.9 19.1 10.5 5.3 8.4 6.2 3,576,585 175 1920. January 591,725 132 34,739,071 72,700,000 14.5 18.5 8.8 7.2 9.1 10.2 4,855,989 237 February 12.2 17.6 7.6 6.9 7.1 7.9 Production of wood pulp and paper. [Federal Trade Commission.] [Net tons.] W pu o l o p d . N pr e i w n s t. - B°°*- ass. W pi r n a g p . - Fine. W pu o l o p d . N pr e i w n s t. - b P o a a p r e d r , W pi r n a g p . - Fine. 1919. 1919. January .. 283,270 116,154 70,443 140,859 50,490 27,675 November 147,672 116,603 84,085 182,940 63,394 32,468 July....... 260,685 113,929 75,613 169,593 63,769 30,036 December. 306,617 122,781 88,779 174,649 62,288 31,014 August 260,987 113,413 82,737 189,782 64,861 33,122 September. 266,915 111,434 81,024 184,897 63,353 31,923 1920. October 308,710 125,216 89,440 202,524 67,110 34,808 January.., 302,541 129,663 96,419 211,934 70,109 32,886 Sale of revenue stamps for manufactures of tobacco in the United States (excluding Porto Rico and Philippine Islands). [Commissioner of Internal Revenue.] Cigars. Cigarettes. Cigars. Cigarettes. Manufac- Manufactured tured Large. Small. Small. tobacco. Large. Small. Small. tobacco. 1918. Number. Number. Number. Pounds. 1919. Number. Number. Number. Pounds. December 527,586,098 59,139,250 2,788,379,210 25,276,695 June 576,976,572 48,855,070 3,140,393,217 31,312,150 July 569,908,339 47,500,287 3,585,030,983 33,838,667 1919. August 533,227,393 54,953,647 3,918,403,687 35,568,246 January 518,708,482 72,458,974 3,079,212,253 29,308,616 September 575,777,829 53,735,960 4,283,247,387 36,623,005 February 476.329,947 60,138,630 3,126,274,662 27,472,269 October 677,622,154 64,170,793 5,028,875,337 39,335,546 March 549,098,351 84,493,873 3,845,079,275 29,227,678 November 655,421,893 56,080,813 4,768,598,203 32,965,088 April 510,357,494 73,314,273 2,650,182,742 29,883,710 December 662,046,997 45,491,540 4,578,641,450 29,409,443 May 551,659,749 57,611,547 2,767,699,400 33,340,102 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

296 FEDERAL RESERVE BULLETIN. MARCH, 1920. Output of locomotives and cars. [Locomotives, United States Railroad Administration; cars, Railway Car Manufacturers' Association.] Locomotives. Output of cars. Locomotives. Output of cars. D sh o i m pp e e st d i . c F p o c le o re t m e ig d - n . Domestic. Foreign. Total. D sh o i m pp es e t d ic . F p o c le o re t m e ig d - n . Domestic. Foreign. Total. 1919. Number. Number; Number. Number. Number. 1919. Number. Number. Number. Number. Number. January 282 84 8,172 3,635 11,807 November 39 23 8,967 2,622 11,589 July 121 73 2,777 6,936 9,713 December 103 42 4,506 2,428 6,934 August 160 173 18,509 5,015 23,524 September 111 51 19,980 4,302 24,282 1920. October 89 55 10,445 3,715 14,160 January 48 22 4,650 1,914 6,564 Vessels built in United States, including those for foreign nations, and officially numbered by the Bureau of Navigation. [Monthly average, 1911-1913=100.] Num- Gross Relaber. tonnage. tive. 1919. 1919. January 132 264,346 1,094 November. July 245 397,628 1,645 December.. August 238 455,338 1,884 September 202 378,858 1 568 1920. October 210 357,519 1,479 January. 1,049 Tonnage of vessels cleared in the foreign trade. [Department of Commerce.] [Monthly average, 1911-1913=100.] Net tonnage. Per- Net tonnage. Percent- centage of Rela- age of Rela- American. Foreign. Total. R ti e v l e a . - A c to a m n ta e t l r o . i- tive. American. Foreign. Total. R ti e v l e a . - A c to a m n ta e t l r o . i- tive. 1919. 1919. Januarv 1,166,391 1,896,123 3,062,514 78 38.1 151 November 2,251,871 1,910,489 4,162,360 107 54.1 214 July ..... 2,362,571 2,920,247 5,282,818 136 44.7 177 December 2,043,675 1,733,923 3,777,598 97 54.1 214 August 2,957,249 2,797,818 5,755,067 148 51.4 203 September 2,627,480 2,481,676 5,109,156 131 51.4 203 1920. October 2,645,778 2,073,560 4,719,338 121 56.1 222 January 1,933,385 1,949,798 3,883,183 100 49.8 197 Net ton-miles, revenue and nonrevenue. [United States Railroad Administration.] 1919. 1919. January 30,355,765,000 November j 32,539,248,000 July 34,914,294,000 D ecember i 33,462,298,000 August. 36,361,653,000 September 38,860,311,000 1920. I October 40,343,750,000 January I 34,769,722,000 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MARCH, 1920. FEDERAL RESERVE BULLETIN. 297 BANK TRANSACTIONS DURING JANUARY-FEBRUARY. In the tables below are shown debits to indi- preceding four weeks, shows a degree of recesvidual account for the four weeks ending Febru- sion but slightly larger than the corresponding ary 18 of the present year, and for the corre- volume a year ago. For the New York Clearing sponding weeks in 1919, as reported to the House banks, however, undoubtedly as the re- Board by over 150 of the country's more im- sult of the decided shrinkage during the month portant clearing houses. A recapitulation, by in the volume of stock-exchange dealings, the Federal Eeserve districts, combines figures for decrease in bank transactions as compared with 150 centers, for which uniform reports are the total for the immediately preceding four available for each of the eight weeks under weeks was about 13 per cent, as compared with review. 10 per cent the year before. Considerable fluctuations in the weekly total, Aggregate debits to individual account reboth in 1919 and in the present year, are shown, ported for New York City for the four weeks the high figures in both years applying to the under review show a 28 per cent increase over week covering end-of-January transactions, the corresponding 1919 figures, or slightly less while the low figures are shown for the weeks than the rate of increase that is shown by all ending February 12, 1919, and February 18 of the other reporting centers. For the four-week the present year, containing Lincoln's Birthday, period immediately preceding the volume of observed as a holiday by most of the clearing- like debits of New York City banks shows an house centers. On the whole the volume of increase of about 32 per cent, compared with bank transactions for the four weeks under an increase of 25 per cent only for other reportreview, while nearly 10 per cent less than for the ing centers. Debits to individual account at clearing-house banks. [In thousands of dollars.] 1920 1919 Federal Reserve district. Week ending— Week ending— Jan. 28. Feb. 4. Feb. 11. Feb. 18. Jan. 29. Feb. 5. Feb. 12. Feb. 19. No. 1—Boston: Bangor 2,972 3,022 3,035 3,018 2,131 3,105 2,245 2,730 Boston 306,189 333,020 294,845 300,648 229,283 272,062 220,036 226,339 Fall River 9.519 13,105 8.326 9,472 6,220 7,218 6,166 5,325 Hartford 20,603 28,036 18,335 27,058 16,227 19,497 13,744 18,181 Holyoke 4,927 4,889 4,438 4,997 2,663 3,168 2,304 3,009 Lowell 4,994 5,255 4,922 5,713 5,336 5,278 4,240 4,799 New Bedford 8,059 7,813 7,948 10,769 5,714 6,172 5,573 6,591 New Haven 20,227 19,529 17,601 16,762 18,946 17,011 11,067 16,540 Portland 6,867 8,450 6,892 6,934 Providence 40,248 42,248 34,325 4i;060 29,166 27,942 25,736 28,365 Springfield 16,648 19,458 16,709 12,647 8,451 9,972 8,911 9,456 Waterbury 7,601 7,262 6,664 9,893 5,691 6,981 4,606 7,164 Worcester 16,509 19,978 15,483 17,949 12,843 14,736 11,900 13,468 No. 2—New York: Albany 22,781 20,627 19,516 20,095 20,858 14,353 17,923 14,976 Binghamton 3,830 4,449 3,914 3,944 2,960 3,236 2,193 2,968 Buffalo 62,684 76,259 61,283 58,764 53,456 59,034 37,725 62,840 New York 4,616,856 5,427,761 4,918,894 4,075, ISO 3,736,138 4,302,842 2,901,788 3,881,924 Passaic 4,948 5,562 4,663 5,511 2,917 3; 554 3,202 3,241 Rochester 30,160 29,819 27,016 30,197 21,618 27,324 18,614 26,581 Syracuse 13,255 15,235 15,738 14,960 12,438 18,588 9,956 12,306 No. 3—Philadelphia: Altoona 3,370 2,877 2,470 3,101 2,230 2,471 1,802 2,528 Chester 4,363 4,705 4,110 4,775 5,503 5,228 3,684 4,980 Harris burg 5,134 2,330 2,300 2,720 4,905 4,826 4,383 5,937 Johnstown 2,810 3,194 3,104 3,626 2,299 3,162 1,822 2,916 Lancaster 5,111 5,539 4,651 5,341 3,564 4,222 2,721 4,329 Philadelphia 343,180 401,683 319,216 331,070 268,552 306,129 222,493 302,813 Reading 4,475 4,710 4,464 5,711 3,428 3,613 3,029 4,641 Scranton 15.703 12,111 15,460 12,068 12,589 11,545 10,286 10,798 Trenton., 10,410 10,720 10,117 11,188 7,774 10,014 7,744 12,796 Wilkes-Barre... 8,187 6,659 7,352 8,722 4,444 6,366 5,261 6,729 Williamsport... 3,961 3,552 3,285 3,805 2,981 2,802 2,415 2,846 Wilmington — 10,102 15,661 12,663 9,356 8,920 10,673 6,641 8,926 York 3,509 4,208 3,146 4,094 2,611 3,006 2,639 3,090 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

298 FEDERAL RESERVE BULLETIN-. MARCH, 1920. Debits to individual account at clearing-house banks—Continued. [In^thousands of dollars.] 1920 1919 Federal Reserve district. Week ending— Week ending- Jan. 28. Feb. 4. Feb. 11. Feb. 18. Jan. 29. Feb. 5. Feb. 12. Feb. 19. No. 4—Cleveland: Akron 18,632 28,068 27,991 27,471 16,045 17,123 j 16,086 16,955 Cincinnati 61,402 66,159 58,974 60,866 52,211 57,547 49,168 ! 50,494 Cleveland 164,194 164,560 148,918 152,174 i 125,878 125,756 I 103,922 ! 119,997 Columbus 27,228 28,202 27,678 34,562 21,525 25,220 21,812 I 22,240 Dayton 11,753 12,614 11,468 13,135 10,545 11,176 10,877 I 10,103 Erie 6,259 7 118 6,304 6,621 6,524 6 863 ! 5,858 6,198 Greensburg 4,822 5,704 4,029 4,432 3,537 2,765 2,760 I 2,308 Lexington 11,708 11,311 11,550 12,063 9,716 10,510 8,951 I 10,872 Oil City 2,315 2,571 1,865 2,699 1,756 2,432 1,984 2,741 Pittsburg 181,501 177,270 173,188 184,823 175,877 167,172 154,406 154,753 Springfield 3,012 3,883 3,135 3,526 3,157 2,372 2,717" 2,749 Toledo 29,432 23,052 23,477 34,031 21,351 21,406 21,449 22,461 Wheeling 9,855 9,164 7,223 9,919 10,716 10,888 6,481 7,561 Youngstown 17,659 13,327 16,050 12,273 14,287 12,835 12,550 No. 5—Richmond: Baltimore 99,710 113,103 97,203 98,784 72,921 81,360 69,191 74,982 Charleston 11,648 11,473 10,228 9,706 6,690 7,704 6,376 6,378 Charlotte 9,259 8,900 11,223 11,567 6,300 5,600 5,111 5,500 Columbia 9,587 9,657 8,019 7,656 5,824 6,488 9,215 6,857 Norfolk 20,114 19,320 16,893 18,819 19,449 17,494 18,970 16,498 Raleigh 5,500 5,300 4,900 5,319 5,570 3,565 5,900 Richmond 27,691 34,644 30,489 30,290 24,196 30,846 25,080 22,177 No. 6—Atlanta: Atlanta 33,067 33,127 32,753 33,999 23,548 26,024 27,835 i 23,027 Augusta 12,923 11,475 10,500 8,756 6,446 6,687 5,682 5,707 Birmingham 15,393 17,352 16,100 16,326 9,685 14,291 13,451 11,004 Chattanooga 12,343 13,734 10,994 13,764 7,591 10,040 9,012 Jacksonville 16,562 14,582 13,955 13,651 10,563 10,910 9^944 | 9,903 Knoxville 6,659 7,109 6,754 7,971 4,758 6,180 5,335 1 5,769 Macon 10,019 7,963 7,264 8,163 4,944 5,360 4,535 i 4,495 Mobile 9,793 10,035 9,752 9,089 6,413 6,977 6,501 S 6,527 Montgomery 6,236 6,150 5,843 6,200 4,145 4,370 3,703 ! 5,839 Nashville 27,915 27 148 26,281 26,475 18,964 19,061 17,190 | 18,856 New Orleans 83,504 98,564 88,944 73,298 69,239 71,910 62,285 ' 65,198 Pensacola 2,197 2,579 2,915 2,342 2,071 2,154 1,861 2,266 Savannah 19,747 21,284 18,666 14,971 12,301 12,416 11,737 11,722 Tampa 6,378 7,244 6,668 6,663 4,594 4,327 4,346 4,707 Vicksburg 2,190 2,102 2,116 1,735 1,874 2,142 1,945 1,604 No. 7.—Chicago: Bay City 4,048 2,865 3,366 3,098 2,848 2,374 2,440 3,076 Bloomington 2,521 3,120 2,571 3,377 2,227 2,340 1,831 2,388 Cedar Rapids 9,691 8,167 9,120 4,440 5,432 5,050 3,495 Chicago 676,679 670,098 679,408 544,374 623,177 436,154 614,073 Davenport 6,978 9,450 6,146 8,368 5,931 8,454 6,202 8,421 Decatur 3,664 4,234 3,618 3,683 2,884 3,125 2,229 2,917 Des Moines 21,412 18,484 21,621 19,781 16,020 18,233 15,205 18,172 Detroit 127,715 150,484 108,855 176,308 93,136 107,015 68,400 130,534 Dubuque 3,088 4,000 3,125 3,641 1,800 2,300 1,700 2,051 Flint 10,000 11,000 8,000 7,000 4,293 5,163 3,900 3,725 Fort Wayne 6,128 6,575 7,636 6,710 4,569 5,154 3,919 4,671 Grand Rapids 20,521 21,443 20,989 23,637 16,602 14,777 14,742 13,890 Indianapolis 33,817 37,800 34,539 40,454 26,693 24,670 22,635 32,674 Jackson 4,868 4,960 4,177 4,864 Kalamazoo 4,312 4,759 4,713 4,563 2,644 3,250 2,239 3,338 Lansing 5,160 4,956 5,147 5,657 3,125 3,476 2,904 4,307 Milwaukee 55,689 69,198 66,223 63,682 49,411 59,628 50,728 48,654 Peoria 9,540 10,740 8,440 12,101 10,362 11,637 10,090 12,590 Rockford 4,886 6,475 6,171 5,823 4,033 ' 4,822 3,595 4,979 Sioux City 15,902 15,219 16,810 16,936 16,765 14,747 16,609 15,273 South Bend 3,119 4,187 4,432 4,375 500 3,803 2,332 3,167 Springfield 3,333 5,022 4,753 4,959 2,851 2,662 2,792 2,918 Waterloo 2,793 3,632 3,660 3,484 2,854 3,263 2,391 2,925 No. 8.—St. Louis: Evansville 5,325 5,772 5,582 6,275 4,252 ! 2,605 2,279 3,300 Little Rock 9,865 9,896 10,009 10,262 7,689 ! 7,695 6,839 7,263 Louisville 35,750 39,432 32,083 47,859 41,643 ! 40,924 41,959 50,130 Memphis 45,969 43,598 43,747 49,674 28,703 29,220 25,301 26,161 St. Louis 146,440 163,296 148,099 166,879 129,907 154,953 124,323 128,110 No. 9.—Minneapolis: Aberdeen 3,829 1,484 1,382 2,149 1,130 I 1,257 992 1,284 Billings 2,133 2,079 2,393 2,601 1,649 | 1,763 1,431 2,066 Duluth 16,502 15,976 18,372 16,007 29,534 25,525 15,533 14,082 Fargo 2,549 2,804 2,848 2,797 1,763 2,537 1,732 1,541 Grand Forks 1,432 1,566 1,548 1,488 1,062 1,197 1,187 1,180 Great Falls 2,675 2,864 2,611 2,113 2,925 3,249 2,981 3,126 Helena 2,615 2,438 2,C04 1,986 2,352 2,016 2,113 2,281 Minneapolis 81,537 80,900 83,534 76,348 64,792 67,776 42,993 62,127 St. Paul 36,032 37,687 38,850 36,578 34,833 38,196 29,106 36,793 Sioux Falls 6,800 6,212 5,013 6,752 Superior 1,687 1,856 1,610 1,741 1,300 1,422 1,811 i 1,830 Winona 911 1,337 2,165 1,045 901 1,217 978 950 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

299 MARCH, 1920. FEDERAL RESERVE BULLETIN. Debits to individual account at clearing house banks—Continued. [In thousands of dollars.] 1920 1919 Federal Reserve district. Week ending- Week ending— Jan. 28. Feb. 4. Feb. 11. Feb. 18. Jan. 29. Feb. 5. Feb. 12. Feb. 19. No. 10.—Kansas City: Atchison 563 575 639 673 Bartlesville 3,010 4,255 3,355 3,550 1,733 2,585 2,066 2,351 Cheyenne 1,641 2,117 2,413 1,946 Colorado Springs 3,155 3,245 3,517 2,946 1,809 2,210 1,691 2,111 Denver 44,879 60,228 60,408 43,635 27,515 31,785 23,144 26,138 Joplin 3,467 3,542 4,264 4,691 2,767 3,243 3,145 Kansas City, Kans... 3,915 4,128 3,936 4,249 3,065 3,120 3,221 3,249 Kansas City, Mo 94,162 94,222 86,129 89,261 78,456 85,428 82,612 84,119 Muskogee 5,567 6,332 5,877 6,074 2,604 3,133 3,291 3,074 Oklahoma City 17,762 19,678 18,509 19,099 12,895 12,939 11,049 12,791 Omaha 60,831 55,488 57,927 55,914 59,454 64,564 45,106 63,486 Pueblo 4,819 3,819 3,732 4,658 3,199 4,505 3,216 4,121 St. Joseph 21,265 19,819 13,025 17,517 22,059 21,226 18,516 16,729 Topeka 5,067 5,909 5,969 5,624 3,718 5,631 3,803 5,195 Tulsa 25,706 27,059 26,106 30,408 18,790 17,421 18,552 Wichita 11,818 14,347 11,975 12,379 7,866 9,822 9,750 7,055 No. 11.—Dallas: Albuquerque 1,892 2,070 1,904 1,796 1,191 1,686 1,313 1,331 Austin 3,409 4,182 4,086 3,714 3,542 3,841 2,703 4,470 Beaumont 4,480 4,330 5,852 4,979 3,685 4,582 3,769 4,691 Dallas 44,220 45,517 40,673 46,929 28,901 29,749 24,340 36,988 El Paso 9,119 10,036 8,064 9,041 5,919 6,659 5,649 7,121 Fort "Worth 23,356 22,943 19,010 22,751 17,281 19,146 16,336 17,300 Galveston 8,002 10,864 8,394 6,704 6,303 6,288 5,667 5,421 Houston 37,603 38,225 38,872 24,271 25,091 18,679 27,918 San Antonio 8,290 9,014 9,062 8,388 Shreveport 8,294 10,489 8,605 8,859 5,222 3,694 3,828 4,789 Texarkana 1,664 2,363 2,139 2,912 997 1,681 1,259 1,844 Tucson 1,432 1,575 1,514 1,344 1,678 1,933 1,867 1,579 Waco 3,866 6,155 4,980 5,640 3,063 3,055 2,485 3,823 No. 12.—San Francisco: Berkeley 3,743 2,935 2,392 2,865 Boise 3,830 3,534 3,619 3,279 2,365 2,472 2,018 1,845 Fresno 8,799 9,494 7,556 17,136 5,156 5,845 5,170 5,913 Long Beach 5,426 6,132 4,664 6,132 2,322 2,652 2,083 2,782 Los Angeles 92,346 102,845 96,180 97,207 54,512 62,125 46,217 68,820 Oakland 19,944 19,861 20,799 19,419 10,614 13,133 11,749 11,141 Ogden 3,972 3,183 3,919 4,061 3,690 3,298 3,570 3,713 Pasadena 5,253 5,725 4,724 5,248 2,744 2,767 2,097 3,445 Portland 37,503 45,510 41,091 45,526 36,571 36,018 26,622 42,418 Reno 2,605 3,085 2,890 2,001 ' 1,508 1,695 1,345 2,218 Sacramento 12,001 15,884 10,993 14,217 11,366 15,336 9,288 11,610 Salt Lake City 17,383 18,452 13,243 20,176 13,343 14,633 I 11,673 14,651 San Diego 6,893 8,364 7,741 7,812 4,654 5,768 4,156 5,571 San Francisco 193,137 218,282 182,952 189,384 128,852 171,171 115,922 167,053 San Jose 4,981 5,584 5,651 5,881 Seattle. 45,937 50,571 44,944 43,630 42,249 43,949 27,368 42,199 Spokane.. 12,259 13,083 11,659 12,978 7,238 8,804 6,625 8,854 Stockton. 5,404 5,708 4,860 6,683 4,139 3,500 3,174 4,940 Tacoma.. 9,948 9,711 10,323 11,360 9,432 9,214 8,107 10,342 Yakima.. 2,436 3,270 Si 082 2,973 1,523 1,908 1,570 2,008 Recapitulation by Federal Reserve districts. [In thousands of dollars.] 1930 1919 Number Week ending- Week ending- Federal Reserve District. of centers included. Jan. 28. Feb. 4. Feb. 11. Feb. 18. Jan. 29. Feb. 5. Feb. 12. Feb. 19. Boston 458,496 503,615 432,631 459,986 342,671 393,142 316,528 341,967 New York 4,754,514 5,579,712 5,051,024 4,208,651 3,850,385 4,428,931 2,991,401 4,004,836 Philadelphia... 420,315 477,949 392,338 405,577 329,800 374,057 274,920 373,329 Cleveland 549,772 553,003 521,850 558,595 473,125 474,065 419,021 439,127 Richmond 183,509 202,397 179,855 181,722 140,699 155,062 137,508 138,292 Atlanta 264,926 280,448 259,505 243,403 187,136 202,849 183,558 185,635 Chicago 1,030,996 1,141,720 1,019,080 1,106,165 818,362 929,502 678,087 938,208 St. Louis 243,349 261,994 *239,520 280,949 212,194 235,397 200,701 214,964 Minneapolis 151,902 150,991 157,917 144,853 142,241 146,155 100,857 127,260 Kansas City.... 305,423 322,071 304,729 I 300,005 245,930 267,612 229,162 251,530 Dallas 147,337 158,749 138,253 ! 153,541 102.053 107,405 87,895 117,275 San Francisco.. 485,076 542,694 475,239 509,222 342,278 404,288 288,754 409,523 Total 150 8,995,615 10,175,343 9,171,941 ! 8,552,669 7,186,874 8,118,465 5,908,392 7,541,946 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

300 FEDERAL RESERVE BULLETIN. MARCH, 1920. GOLD SETTLEMENT FUND. in part to the heav}^ demands for gold for shipment to Japan, China, Hongkong, and Substantial increases in the number of other Far Eastern countries. Substantial inbanks on the par list, accompanied by a con- creases in ownership of gold (net gains through tinued increase in the use of the facilities of settlements and transfers) are also shown for the Federal Reserve Banks in effecting tele- the Cleveland and Philadelphia banks, while graphic transfers of funds between Federal Chicago and Richmond report a considerable Reserve districts for the account of member movement of funds to other districts. banks, together with the heavy movement of During the period under review the banks funds between the interior and New York in deposited $99,145,045 net of gold in the fund connection with loans in the stock market, are and transferred $161,309,500 to the Federal largely responsible for the further increase in Reserve agents. This resulted in a decrease the volume of clearings effected through the in the banks7 balances in the fund from gold settlement fund during the 3-month $449,782,413 on November 20 to $387,617,958 period ending February 19, 1920. Total clear- on February 19, 1920. The agents' fund was ings aggregated $20,586,346,000, marking an in- credited with the amounts transferred from the crease of 7 per cent over the previous record banks ($161,309,500) and charged with net total of $19,230,644,000 reported for the 3 withdrawals aggregating $200,000,000. On months ending November 20, 1919. February 19, 1920, the aggregate balances in In addition to the amounts cleared through the two funds stood at $1,182,379,818, or the fund, the Board effected transfers of funds $100,854,955 less than on November 20, 1919. between the Federal Reserve Banks, mainly Below are given figures showing operations in connection with rediscount transactions of the two funds for the period from November and for Government account, aggregating 21, 1919, to February 19, 1920, inclusive: $1,616,126,000, compared with $1,754,351,000 during the 3 preceding months. The de- Amounts of clearings and transfers through the gold settlecrease in the amount of Government expen- ment fund by Federal Reserve Banks, from Nov. 21, 1919, ditures during recent months and consequently to Feb. 19, 1920, both inclusive. the lessening demand upon the facilities of the Federal Reserve Banks for the purpose of Settlements of— Total clearings. Transfers. shifting funds from the interior to New York account for the slight falling off in the aggre- Nov.21-26 $1,409,957,138.02 $48,753,980.11 Nov. 27-Dec. 4 1,783,514,418.53 94,022,608.38 gate amount of transfers effected. Transfers Dec. 5-11 1,478,042,381.83 75,347,604.25 Dec. 12-18 1,704,301,576.55 51,116,717.83 were heaviest during the. week following Dec. 19-24 1,452,209,366.51 244,638,898.94 December 15, when the June 3 and July 1, Dec. 26-31 1,481,085,333.03 135,760,964.44 Jan. 2-8 1,859,179,029.79 175,869,107.22 1919, issues of tax certificates matured and Jan. 9-15 1,602,250,242.28 201,745,851.94 Jan. 16-22 1,735,829,277.49 149,680,968.67 the final installment of 1919 income and Jan. 23-29 . 1,610,741,529.52 86,756,326.83 excess profits taxes were payable. Jan. 30-Feb. 5 1,546,781,824.92 147,774,240.45 Feb. 6-11 1,156,246,402.96 76,515,894.54 Operations of the New York bank through Feb. 13-19 1,766,207,752.74 128,143,008.21 the fund resulted in a net loss through settle- Total 20,586,346,274.17 1,616,126,171.81 ments of $431,575,638 and a net gain through Total since Jan. 1,1920.... 11,277,236,059.70 966,485,397.86 Total for 1919 66', 053,394,214.47 7,930,857,773.95 transfers of $348,393,683, thus indicating a Total for 1918 45,439,487,000.00 4,812,105,000.00 Total for 1917 24,319,200,000.00 2,835,504,000.00 net movement of funds away from New York amounting to $83,181,955. The continued Clearings and Transfers. movement of funds to the San Francisco bank, Total for 1920 to date $12,243,721,457.56 as evidenced by net gains through settlements Total for 1919 73,984,251,988.42 and transfers of $47,708,000, $115,173,000, and Total for 1918 50,251,592,000.00 Total for 1917 27,154,704,000.00 $78,158,774, respectively, reported for the Total for 1916 5,533,966,000.00 Total for 1915 1,052,649,000.00 3-month period ending August 22 and November 20, 1919, and February 19, 1920, is due Total clearings and transfers from May 20,1915, to Feb. 19, 1920 170,220,884,445.8ft Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MARCH, 1920. FEDERAL RESERVE BULLETIN. 301 Changes in ownership of gold. Total to Nov. 20, 1919. From Nov. 21, 1919, to Feb. 19, 1920, inclusive. Total changes from May 20, 1915, to Feb. 19, 1920. Federal Reserve Balance to Bank. credit Nov. 20, plus net Balance Decrease. Increase. deposits of Feb. 19, 1920. Decrease. Increase. Decrease. Increase. gold since that date. ~r Boston j $14,160,000.00 $31,817,714.57 $39,394,274.39 $7,576,559.82 $21,736,559.82 New York ;«737,738,000.00 123,172,592.42 39,990;637.24 $83,181,955.18 $820,919,955.18 Philadelphia | 5,890,000.00 i 10,362,287.00 30,090.504.07 19,728,217.07 25,618,217.07 Cleveland ! 98,555,000.00 j 7,224,042.37 36,724;758.93 29,500,716.56 128,055,716.56 Richmond 48,957,000.00 I 46,957,023.84 30,565:744.66 16,391,279.18 32,565,720.82 Atlanta 57,481,000.00 ! 12,820,604.93 20,772!,407.49 7,951,802.56 65,432,802.56 Chicago 102,889,000.00 1116,001,247.13 75,216,620.87 40,784,626.26 62,104,373.74 St. Louis 82,404,000.00 I 16,253,459.89 12,240.818.01 4,012,641.88 78,391,358.12 Minneapolis 8,357,000.00 j 19,167,230.12 17,860,023.C4 1,307,207.08 7,049,792.92 Kansas City I 44;404,000.00 | 43;914',236.42 37,983,817.93 5,930,418.49 38,473,581.51 Dallas ! 38,530,000.00 j 5,964,646.42 14,656,704.08 8,692,057.66 I 47,222,057.66 San Francisco 1236, 111, 000.00 1*46,037,127.01 32,121,647.39 | 78,158,774.40 j 314,269,774.40 Total i 737,738,000.00 J737,738,OO0.O0 1387,617,958.10 387,617,958.10 ! 151,608,128.07 151,608,128.07 820,919,955.18 j 820,919,955.18 i Excess of withdrawals over balance Nov. 20,1919, and deposits since that date. Combined statement from Nov. 21, 1919, to Feb. 19, 1920, inclusive. GOLD SETTLEMENT FUND. Aggregate Aggregate Transfers. Fed B er a a n l k R o e f s — erve N B s o t a v a l . a t e n 2 m c 0 e , e 1 n l 9 a t 1 s , 9 t . with G dr o a ld wals. de G po o s ld its. to a w n a i d g t h e t n d r t r a ' a s n w s f f a u e l n r s s d. t a d ra g e n e p s n o f t s e ' i s r t s s f u f a r n n o d d m . Debits. Credits. Boston .. $32,877,714. 57 $60,000.00 $21,000,000.00 $22,060,000.00 $21,000,000.00 $136,643,206.28 $90,390,730.11 New York 118,304,592.42 85,132,000.00 125,000,000.00 140,132,000.00 145,000,000.00 164,957,676.07 513,351,358.98 Philadelphia 30,025,787.00 14,336,500.00 39,000,000.00 19,336,500.00 274,579,612.86 324,426,274.13 Cleveland 25,731,519.87 "1 "666," 666.66 5,492,522.50 24,000,000.00 5,492,522. 50 126,729,354.26 41,884,074.15 Richmond 33,671,208.84 2,543,185.00 25,829,000.00 12,543,185.00 25,829,000.00 73,770,752.54 63,911,213.85 Atlanta 16,631,827. 43 298,900.00 20,487,677.50 32,298,900.00 28,487,677. 50 83,539,169. 62 41,702,950. 56 Chicago 64,167,247.13 260,000.00 37,094,000.00 40,260,000.00 92,094,000.00 318,138,940. 94 240,373,307.67 St. Louis. . 16,403,294.89 7, 749,835. 00 23,600,000.00 64, 749,835.00 64,600,000.00 54,894,410.04 27,712,787. 89 Minneapolis 17,397,230.12 200,000.00 3,470,000.00 2,200,000.00 3,970,000.00 21,371,860.55 19,717,544. 51 Kansas City 42,570,826.42 120,000. 00 1,463,410.00 120,000.00 1,463,410.00 97,062,484.33 64,949,000.36 Dallas... 20, 773, 791.42 7,912, 775. 00 1,103,630. 00 15,912, 775.00 1,103,630.00 178,632,282. 39 140,699,589.23 San Francisco 31,227,372.99 92,255,000.00 20,800,000.00 170,255,000.00 92,990,500.00 85,806,421.93 47,007,340.37 Total 449, 782,413.10 200,531,695.00 299,676,740.00 563,531,695.00 501,367,240.00 1,616,126,171. 81 1,616,126,171.81 Settlements from Nov. 21,1919, to Feb. 19,1920, both inclusive. Balance in fund at close Federal Reserve Bank of— I of business, Net debits. Total debits. Total credits. Net credits. Feb. 19,1920. Boston $1,630,628, 780. 70 $1,684,457,816.69 $53,829,035.99 $39,394,274. 39 New York $431,575,638.09 5,823,871,433.54 5,392,295, 795.45 39,990,637.24 Philadelphia j 30,118,444.20 1,915,708,071. 66 1,885,589,627.46 30,090,504.07 Cleveland 1,510,483,554. 55 1,624,829,551. 22 114,345,996. 67 36,724,758. 93 Richmond 6,531,740.49 1,948,220,536. 71 1,941,688,796.22 30,565,744.66 Atlanta 651,341,938. 26 701,129,959.8S 49,788,021.62 20,772,407.49 Chicago < I 2,608,150,917.16 2,645,131,924.17 36,981,007.01 75,216,620.87 St. Louis I 1, 593,407,459. 99 1,616,576,440.26 23,168,980. 27 12,240,818.01 Minneapolis | 443,223,834.43 443,570,943. 39 347,108. 96 17,860,023.04 Kansas City 1,127,440,294.48 1,153,623,359. 96 26,183,065.48 37,983,817.93 Dallas 729,194,953. 78 775,819, 704.60 46,624,750.82 14,656,704.08 San Francisco 604,674,498. 91 721,632,354. 87 116,957,855. 96 32,121,647. 39 Total 468, 225,822. 78 20,586,346,274.17 20,586,346,274.17 468,225,822. 7 387,617,958.10 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

302 FEDERAL RESERVE BULLETIN. MARCH, 1920. Combined statement from Nov. 21,1919, to Feb. 19, 1920, both inclusive. FEDERAL RESERVE AGENTS' FUND. Federal Reserve agent at— Balance last with G dr o a l w d als. Gold W fo t i r o t h t r b d a a r n a n s w k fe . a r l s s fr t D o t r h m a e r n p o s b o u f s a e g i n r h t s s k. with T d o ra ta w l als. de T p o o t s a i l ts. F B e b b a c u . l l o a s 1 i s n 9 n e c , e 1 e o s 9 f s a 2 t 0. Boston $52,000,000 $34,000,000 $20,000,000 $22,000,000 $34,000,000 $42,000,000 $60,000,000 New York.... 85,000,000 15,000,000 $20,000,000 55,000,000 35,000,000 55,000,000 105,000,000 Philadelphia.. 65,389,260 40,000,000 8,500,000 5,000,000 39,000,000 45,000,000 47,500,000 67,889,260 Cleveland 70,000,000 10,000,000 20,000,000 10,000,000 20,000,000 80,000,000 Richmond.... 48,000,000 25,000,000 10,000,000 25,000,000 10,000,000 33,000,000 Atlanta 48,000,000 22,000,000 8,000,000 32,000,000 30,000,000 32,000,000 50,000,000 Chicago 245,144,500 76,000,000 46,000,000 55,000,000 40,000,000 131,000,000 86,000,000 200,144,500 St. Louis 63,930,600 28,000,000 41,000,000 57,000,000 69,000,000 57,000,000 51,930,600 Minneapolis.. 19,800,000 2,000,000 500,000 2,000,000 2,500,000 2,000,000 19,300,000 Kansas City.. 36,860,000 18,000,000 15,000,000 18,000,000 15,000,000 33,860,000 Dallas 11,484,000 9,000,000 7,000,000 8,000,000 9,000,000 15,000,000 17,484,000 San Francisco 87,844,000 17,500,000 72,190,500 78,000,000 89,690,500 78,000,000 76,153,500 Total... 833,452,360 296,500,000 96,500,000 I 201,690,500 363,000,000 498,190,500 459,500,000 i 794,761,860 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MARCH, 1920. FEDERAL RESERVE BULLETIN". 303 DISCOUNT AND OPEN MARKET OPERATIONS OF THE FEDERAL RESERVE BANKS DURING JANUARY, 1920. Discount operations of the Federal Reserve commercial paper show a reduction to $736,- Banks during the first month of the present 600,589 from $982,387,419 in December, 1919. year totaled $6,241,271,489, compared with About 90 per cent of the month's discounts, $7,290,872,591 in December, 1919, and $5,994,- as against 92 per cent in December, 1919, was 382,265 in January of the past year. These made up of 15-day paper, i. e., bills maturing totals are exclusive of amounts of bills dis- within 15 days from date of discount or rediscounted for other Federal Reserve Banks, count with the Federal Reserve Banks. On the which totaled 270 millions in the month under other hand, the share of 90-day paper shows an review, 117 millions in December, 1919, and increase for the same period from 3.7 to 5.8 about 105 millions in January, 1919. per cent. Six-month paper, composed of agri- Reduction in the volume of outstanding cultural and live-stock paper, totaled $11,333,- Treasury certificates, followed by a decrease in 378, compared with $12,380,465 the month bethe total volume of war paper discounted, also fore. As a result, the average maturity of all the the prevalence during the month of uniform paper discounted during the month works out rates, irrespective of maturity, on paper se- at 13.21 days, compared with 11.52 days for cured by Liberty bonds and Victory notes, as December and 10.34 days for January of the well as on ordinary commercial paper, largely past year. For the New York bank the averaccount for the considerable shrinkage in total age maturity of the paper discounted works out discounts shown, as may be seen from a com- at 9.63 days, compared with 7.40 days for Deparison of the volumes of war paper and 15-day cember and 7.20 days for January, 1919. paper discounted by the Federal Reserve Banks About 81 per cent of the January discounts during January and the months immediately took the 4f per cent rate and over 11 per cent preceding. War paper discounted during Jan- the 5-| per cent rate, while the average rate uary totaled 5,456.3 millions, compared with of discount charged by all Federal Reserve 6,202.2 millions in December and 6,761.8 mil- Banks works out at 4.90 per cent, as compared lions in November, 1919, while the volume of with 4.67 per cent the month before and 4.18 15-day paper discounted in January was 5,609.3 per cent for January of last year. For the New millions, as against 6,746.3 millions in December York bank the average calculated rate of disand 6,860.8 millions in November of the past count charged during the month was 4.86 per year. cent, compared with 4.63 per cent for Decem- Discount operations were on a substantially ber and 4.07 per cent for January, 1919. smaller scale than the month before at all the Holdings of discounted paper on the last Fribanks, except at Atlanta, where the decrease day of the month totaled $2,174,357,000, comwas nominal, and at St. Louis and Dallas, pared with $2,194,878,000 held on the last Friwhere January operations show considerable day in December and $1,601,128,000 at the end increases over the figures of the previous of January last year. About 67 per cent of the month. paper held about the end of the month under War paper constituted 87.4 per cent of the review was made up of war paper, compared total paper discounted during the month, as with about 69 per cent about the close of Deagainst 85 per cent for December and about cember and 85 per cent about the close of Jan- 90 per cent for January, 1919. At the New uary of last year. Discounted trade accept- York bank the share of war paper in the total ances held on the last Friday in January todiscount operations for the month was nearly taled $24,886,000, compared with $33,697,000 90 per cent, as against 87 per cent the month held on the last Friday in December, the debefore. Discounts of trade acceptances to- crease shown following the abolition by all the taled $16,611,090, compared with $23,560,893 Federal Reserve Banks of differential rates in for December and $10,904,212 for January of favor of trade acceptances as against one-name last year. Of the most recent monthly total all paper. Holdings of agricultural paper totaled but $346,446 represented bills based upon $23,212,000, compared with $24,825,000 about domestic trade transactions. Discounts of the end of December, 1919, and $30,291,000 on bankers' acceptances declined from $62,145,690 the corresponding date the year before, while in December, 1919, to $17,223,362 during the holdings of live-stock paper totaled $33,693,month under review. Discounts of ordinary 000, compared with $26,243,000 a month and Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

304 FEDERAL RESERVE BULLETIN. MARCH, 1920. $28,710,000 about a year previous. Of the December and $3,031,723 for January of total agricultural paper held, about 75 per cent 1919. About 90 per cent of the January constituted the combined shares of the Chicago total was drawn in the foreign trade. and Kansas City banks, while live-stock paper About 37 per cent of the paper bought holdings are practically limited to the Minne- in open market was composed of paper of apolis, Kansas City, Dallas, and San Francisco more than 60 days7 maturity at the time banks. of purchase by the Federal Reserve Banks, During the month under review the mem- the average maturity of all the paper bought bership of the system increased from 9,069 to during January being 47.05 days, compared 9,112 institutions, while the number of member with 57.11 days for December and 55.51 days banks accommodated through discount of for January of last year. About 29 per cent paper decreased from 3,659 in December, 1919, of the bills were purchased at the 4f per cent to 3,461 in January. In the following exhibit rate, over 23 per cent took the 5 per cent is presented the number of member banks in rate, and about 21 per cent the 5i per cent each Federal Reserve district at the end of rate. The average rate of discount at which December, 1919, and January, also the number the bills were purchased works out at 5.10 of member banks in each district accommo- per cent, compared with 4.84 per cent for dated during each of these two months. December and 4.28 per cent for January of the past year. Average maturities of the paper purchased by the New York and Boston Number of mem- Number of mem- banks are considerably shorter, viz, 34.07 ber banks in dis- ber banks accomtrict. modated. and 36.18 days, while the average rates of dis- Federal reserve bank. count charged work out at 5.11 and 5.23 Jan. 31. Dec. 31. Jan. 31. Dec. 31. per cent. On the last of January the Federal Reserve Boston.. 431 432 307 277 Banks held a total of $562,010,000 of pur- New York 757 753 375 434 Philadelphia 682 678 393 405 chased bills, compared with $574,103,000 C R l i e c v h e m la o n n d d 8 58 4 6 5 8 58 4 4 3 2 26 3 4 8 2 2 7 5 6 5 held at the close of December and $281,293,000 Atlanta 429 427 159 173 at the close of January, 1919. Of the most Chicago 1,377 1,375 530 586 St. Louis 542 536 204 205 recent total all but $6,448,000 were bankers' Kansas City 1,0 9 4 2 2 8 1,0 9 3 2 9 1 2 29 2 7 8 3 2 6 7 5 0 acceptances, of which $383,549,000, or nearly Dallas 762 758 210 200 70 per cent, were bills accepted by member San Francisco 731 723 256 213 institutions, $74,620,000, or 13.3 per cent, Total 9,112 9,069 3,461 3,659 bills accepted by nonmember State banks and trust companies, $60,999,000 bills Bills purchased in open market during accepted by private banks, and $36,394,000 January totaled $302,452,384, compared with bills accepted by foreign banks and their $400,708,093 purchased in December, 1919, agencies. Of the $6,448,000 of purchased and $201,491,706 in January of last year. trade acceptances held at the close of the Of the total bills purchased during the month month $4,558,000 were bills drawn in the under review $296,964,682 were bankers' foreign trade and $1,890,000 bills drawn in acceptances, and of these about 81 per cent the domestic trade. The former are larger were based upon foreign trade transactions. bills drawn by exporters in the Far East or Purchases of trade acceptances during the American import houses and are reported month reported by three banks totaled largely by the New York and San Francisco $2,706,602, compared with $5,080,924 for banks. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

305 MABCH, 1920. FEDERAL RESERVE BULLETIN. Total discount and open-market operations of each Federal Reserve Bank during the months of January, 1920 and 1919. I . United States Total Total. Bills dis- ! Bills bought United certificates United Federal Reserve Bank. m c e o m u b n e t r e d b a f n or k s. j m in a o rk p e e t n , j j b S o ta n t d e s s . debt o e f d i n n e - ss. se S cu ta ri t t e i s es. Jan., 1920. Jan., 1919. Boston $363,305,053 $18,686,390 $23,792,500 $23,792,500 $405,783,943 $403,009,318 New York 3,454,051,259 153,066,373 i $200,100 156,216,500 156,416,600 3,763,534,232 4,259,725,220 Philadelphia 647,658,480 | 3,723,290 5,238,500 5,238,500 656,620,270 686,466,138 Cleveland 243,778,877 ' 28,926,235 85,077,000 85,077,000 357,782,112 252,229,449 Richmond 304,887,359 4,356,500 14,000,000 14,000,000 323,243,859 302,853,721 Atlanta 150,421,233 6,636,248 889,000 889,000 157,946,481 175,091,730 Chicago 408,576,637 24,486,006 306,624,500 306,624,500 739,687,143 330,839,363 St. Louis 195,389,925 4,820,000 3,390,000 3,390,000 203,599,925 149,900,925 Minneapolis 61,182,911 j 450,000 13,080,500 13,080,500 74,713,411 36,764,059 Kansas City 118,779,298 I 100,000 ; 29,534,000 29,534,000 148,413,298 104,945,378 Dallas 83,529,010 j 417,085 i 1,000 1,000 83,947,095 92,871,920 San Francisco 209,711,447 56,784,257 ! 4,532,000 4,532,000 271,027,704 230,638,925 Total, January, 1920.. ... 6,241,271,489 ! 302,452,384 | 200,100 642,375,500 642,575,600 7,186,299,473 Total, January, 1919 | 5,994,382,265 ! 201,491,706 ! 1,014,175 828,447,000 829,461,175 }_ i_ ! 2 7,025,336,146 1 4 per cent Liberty bonds. 2 Includes $1,000 of municipal warrants. Average amount of earning assets held by each Federal Reserve Bank during January, 1920, earnings from each class of earning assets, and annual rate of earnings on basis of January, 1920, returns. Average daily holdings of the several classes of earning assets. Federal Reserve Bank. Discounted Purchased United States bills. bills. securities. Total. I Boston $158,891,007 $32,169,904 ; $23,249,122 $214,310,033 New York 769,898,611 201,265,952 i 74,703,590 1,045,868,153 Philadelphia... 200,181,794 6,672,551 1 32,430,013 239,284,358 Cleveland 143,939,161 64,168,486 : 27,722,263 235,829,910 Richmond 102,045,194 11,781,856 ! 14,204,278 128,031,328 Atlanta 95,344,068 11,461,699 ! 16,099,253 122,905,020 Chicago 282,589,931 85,059,733 ! 56,588,052 424,237,716 St. Louis 87,465,641 18,602,493 i 18,546,126 124,614,260 Minneapolis... 67,067,032 8,921,161 I 9,147,065 85,135,258 Kansas City... 90,496,099 13,209,588 ! 25,336,753 129,042,440 Dallas 57,878,279 5,838,979 ! 12,611,516 76,328,774 San Francisce. 86,990,783 116,474,390 j 14,862,256 218,327,429 Total, January, 1920. 2,142,787,600 ! 575,626,792 I 325,500,287 3,043,914,679 Total, January, 1919. 1,768,745,862 j 378,035,734 126,788,514 2,273,570,110 Earnings from— Calculated annual rate of earnings from— Federal Reserve Bank. Dis- Pur- United Dis- Pur- United counted chased States Total. counted chased States Total. bills. bills. securities. bills. bills. securities. Per cent. Per cent. Per cent. Per cent. Boston $604,537 $131,804 664 $776, 4.52 4.84 2.01 4.30 New York 3,006,175 818,300 148,355 3,972, 4.65 4.80 2.34 4.49 Philadelphia | 802,787 26,541 58,405 887, 4.72 4.68 2.12 4.36 Cleveland 582,963 264,313 49,191 896, 4.77 4.85 2.09 4.48 Richmond I 409,945 47,422 24,184 j 431, 4.73 4.74 2.01 4.43 Vtlanta j 383,522 45,498 27,562 I 456, 4.75 4.69 2.02 4.39 Chicago | 1,139,770 340,938 100, 720 i 1,581, 4.76 4.73 2.10 4.40 St. Louis. 352,033 j 73,657 32,862 ! 458, 4.74 4.66 2.09 4.33 Minneapolis... 278,564 | 35,318 1."634 ; 329, 4.90 4.67 2.02 4.57 Kansas City... 399,736 ! 52,650 5: 086 i 505, 5.22 4.71 2.47 4.62 Dallas 241,070 | 23,329 23'268 : 2S7, 4.90 4.64 2.17 4.43 San Francisco. 353,298 i 476,039 28,518 I 857 4.80 4.83 2.27 4.64 Total, January, 1920 8,554,400 2,335,809 601,479 11,491.688 4.71 4.79 2.18 4.46 Total, January, 1919 | 6,206,988 1,355,558 259,049 ' 7,821', 595 4.27 4.36 2.49 4.06 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

306 FEDERAL RESERVE BULLETIN. MARCH, 1920. Bills discounted during the month of January, 1920, distributed by classes; aiso average rates and maturities of bills discounted by each Federal Reserve Bank. Member banks' collateral Customers' notes. Federal Reserve Bank. G w se o a c v p r u e a r o r p e b n e d l m r i g b e y a n - - t i G S o e v cu e r r e n d m b en y t Otherwise c T e r p a t d an e c a e c s - . B a a a c n n c c k e e p e s t r . - s' d A is l c l o o u th n e ts r . Total. m i A n a v t d e u a r r a y i g s t e y . ( A 3 v 6 r e 5 a r - t a e d g ay e tions. | war obliga- secured. tions. ! Per cent. Boston $29,701,927 $314,253,000 $66,413 $583,254 $1,553,669 $17,146,790 $363,305,053 | 12.59 4.89 New York 85,903,335 2,980,142,704 6,337,199 10,698,752 370,969,269 3,454,051,259 ! 9.63 4.86 Philadelphia.. 60,973,765 533,770,593 73,000 286,258 52,554,864 647,658,480 | 14.87 4.83 Cleveland 6,869,675 203,644,390 150,000 1,756,801 31,358,011 243,778,877 ! 17.20 4.92 Richmond 6,587,903 282,797,790 2,375,000 557,354 12,569,312 304,887,359 ! 10.93 4.96 Atlanta 1,825,306 126,212,660 610,000 754,975 20,747,525 150,421,233 i 20.80 4.92 Chicago 5,198,766 300,363,250 84,000 1,265,682 99,251,673 408,576,637 | 25.14 4.86 St. Louis 7,948,918 139,558,543 1,601,563 45,959,901 195,389,925 ! 19.44 4.88 Minneapolis 2,478,487 42,596,200 597,037 165,141 15,346,046 61,182,911 ; 27.82 5.05 Kansas City... 2,068,226 82,285,120 9,586,521 391,794 24,447,637 118,779,298 I 28.02 5.52 Dallas 97,750 76,852,869 460,000 157,242 5,961,149 83,529,010 | 18.29 4.78 San Francisco. 1,565,124 162,606,300 531,876 12,753,827 1,965,908 40,288,412 209,711,447 I 17.57 4.81 Total, January, 1920... 211,219,182 I 5,245,083,419 14,533,847 16,611,090 17,223,362 736,600,589 6,241,271,489 I 13.21 4.90 Total, January, 1919... 192,231,173 i 5,521,671,646 17,474,004 10,904,212 1,577,514 250,523,716 5,994,382,265 10.34 4.18 1 Includes $346,446 in the foreign trade. Bankers' and trade acceptances in the foreign and domestic trade and dollar exchange purchased during the month of January, • also average rates and maturities of total bills purchased by each Federal Reserve Bank. Bankers' acceptances. Trade acceptances. Average Average Federal Reserve Bank. do In m t e h s e ti c i | f I o n r e t i h g e n Total. do In m t e h s e tic f I o n r e t i h g e n Total. ex D ch o a ll n a g r e. p T u o r t c a h l a b s i e l d ls . m in a t d u a r y it s y . (3 b 6 r a 5 a s - t i d e s) a . y trade. I trade. trade. trade. Per cent. Boston $4,801,721 $13,884,669 $18,686,390 i $18,686,390 36.18 5.23 New York... 22,570,541 127,457,729 150,028,270 $251,590 $1,280,413 $1,532,003 $1,506,100 153,066,373 34.07 5.11 Philadelphia 1,210,813 j 2,312,477 3,523,290 200,000 3,723,290 64.60 4.93 Cleveland— 5,333,421 ! 23,143,934 28,477,355 50,731 48,149 350,000 28,926,235 61.51 5.13 Richmond 1,745,500 ! 2,611,000 4,356,500 4,356,500 63.31 5.00 Atlanta I 4;220',580 ! 2,415,668 6,636,248 6,636,248 58.61 5.00 Chicago. 5,5""5"6*, 2~9"3" \ 18,379,713 23,936,006 550,000 24,486,006 69.65 5.11 St. Louis 1,120,000 | 3,700,000 4,820,000 4,820,000 58.48 5.06 Minneapolis 450,000 450,000 450,000 54.77 4.89 Kansas City 100,000 ! 100,000 ioo;ooo 75.96 5.07 Dallas 114,052 ; 303,033 417,085 417,085 47.24 5.09 San Francisco 9,382,790 j 46,150,748 55,533,538 1,075,719 1,075,719 175,000 56,784,257 63.71 5.08 Total, Jan., 1920.... 56,605,711 | 240,358,971 296,964,682 302,321 2,404,281 2,706,602 2,781,100 i 302,452,384 47.05 5.10 Total, Jan., 1919.... 96,180,827 I 100,580,386 196,761,213 1,096,578 1,935,145 3,031,723 1,698,770 | 201,491,706 55.51 4.28 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MARCH, 1920. FEDERAL RESERVE BULLETIN. 307 Discounted bills, including member banks' collateral notes, held by each Federal Reserve Bank on the last Friday in January, 1920, distributed by classes. [In thousands of dollars.] Member banks' col- Customers' lateral notes. paper Federal Reserve Bank. cu A lt g u r r i- al ! Live-stock se G cu o r v e e d rn b - y Secured by a T cc ra e d p e t- B a a c n ce k p e t r - s' o A th l e l r Total. paper. ment war Govern- Otherwise ances. ances. discounts. obligations. ment war secured. obligations. Boston 63,065 49,868 2,465 4,806 40,768 161,018 New York 287 122,207 473,288 7,214 10,988 148,143 762,127 Philadelphia 173 4 81,336 77,936 768 50 34,873 195,140 C R l i e c v h e m la o n n d d 3 1 6 1 2 1 79 1 1 1 0 , , 6 8 0 1 5 1 6 8 4 6 , ,1 7 2 0 9 0 7 1 7 5 0 0 2 1 , ,9 7 6 6 2 2 4 2 3 0 , , 4 3 5 5 3 4 1 9 4 9 3 , , 7 49 6 5 0 A Ch tl i a ca n g ta o 11,6 6 0 0 3 8 8 7 5 3 7, , 6 5 4 8 1 3 1 6 4 0 6 , , 1 0 6 0 6 1 12 4 5 1,7 9 1 8 2 4 271 1 3 4 2 7 , , 6 9 1 5 1 3 3 9 1 8 4 , , 4 9 3 1 3 4 St. Louis 52 ""'243* 6,967 41,333 438 2,354 1,9 39,992 Minneapolis 1,563 7,940 4,279 19,604 355 145 31,230 65,116 Kansas City 5,826 16,052 3,589 29,217 4,163 542 5 28,553 87,947 Dallas 987 3,650 193 45,283 316 12,082 62,511 San Francisco 1,594 5,633 2,412 46,679 106 3,978 "i*86i" 28,271 90,534 Total, January, 1920 23,212 317,688 1,140,204 6,427 24,886 19,964 608,283 2,174,357 Total, January, 1919 30,291 28,710 266,758 1,090,813 13,532 13,924 157,100 1,601,128 Per cent, January, 1920 , 1.0 1.6 14.6 52,4 1.2 .9 28.0 100.0 Per cent, January, 1919 1.9 1.8 16.7 68.1 .9 100.0 Acceptances purchased by each Federal Reserve Bank, and held on Jan. 31,1920, distributed by classes of accepting institutions. [In thousands of dollars.] Bank acceptances. Trade acceptances. I Federal Reserve Bank. | | M ba em nk b s e . r m p t N c a e r o n m u o m i n s e b t - - s e . r m b S N e a m t n o a k n t b e s - e . r P b r a i n v k a s te . a b F g r o b a e a r n a n n e n c c d i h i k g e e n s s . Total. Domestic. Foreign. Total. G to r t a a n l d . Boston ! 38,997 561 3,406 6,909 1,106 50,979 57 57 51,036 New York | 106,518 2,907 37,894 25,717 13,159 186,195 1,764 j 3,256 5,020 191,215 Philadelphia 7,171 323 306 107 7,907 20 20 7,927 Cleveland 49,526 8,687 6,179 74,420 27 I 48 75 i 74,495 Richmond 10,853 10,853 10,853 Atlanta 10,449 650 11,099 11,099 Chicago 66,833 1,000 108 2,501 365 70,807 70,807 St. Louis ! 10,184 258 419 10,861 10,861 Minneapolis 5,591 100 5,691 5,691 Kansas City 6,105 214 995 588 7,910 I 7,910 Dallas 1,037 1,037 1,037 San Francisco 70, 111 672 16,597 '15*684' "14,699 117,763 45 1,271 1,316 | 119,079 Total: ! Jan.31,1920 383,375 6,134 68,592 61,218 36,103 555,522 1,893 4,595 6,488 562,010 Dec. 31, 1919 405,339 5,121 60,213 55,537 40,159 2,540 5,194 7,734 574,103 Nov. 30,1919 347,852 6,446 48,798 55,876 36,358 495,330 1,646 4,934 6,580 501,910 Jan. 31, 1919 224,237 2,178 11,986 22,163 15,119 275,683 1,871 3,739 5,610 281,293 Jan. 31, 1918 240.259 5,547 3,522 22,099 6,947 278,374 284,737 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

308 FEDEKAL EESEEVE BULLETIN. MABCII, 1920. OPERATION OF THE FEDERAL RESERVE CLEARING SYSTEM, JAN. 16 TO FEB. 14, 1920. [Amounts in thousands of dollars.] Items drawn on banks in own district. Total. Items drawn on Located in Federal Located outside Fed- Treasurer of United Federal Reserve Bank or Reserve and Fed- eral Reserve and States. branch. eral Reserve Federal Reserve Number. Amount. branch cities. branch cities. Number. Amount. Number. Amount. Number. Amount. 1920 1919 1920 1919 Boston 623,524 651,408 2,364,271 376,861 78,551 27,566 3,066,346 2,675,840 1,055,835 935,915 New York 741,001 2,143,890 3,093,155 1,857,062 726,774 247,122 4,560,930 I 5,576,154 4,248,074 3,989,824 Buffalo 125,990 83,903 261,209 40,472 6,772 1,076 393,971 j 125,451 Philadelphia ,209,312 808,239 1,501,803 202,464 137,280 41,930 2,848,395 1,773,600 1,052,633 935,981 Cleveland 210,066 217,173 854,527 150,696 21,573 1,086,166 ! 737,663 377,566 357,540 Cincinnati 124,940 141,612 586,701 89,038 27,875 4,169 739,516 i 529,355 234,819 187,540 Pittsburgh 263,514 267,652 655,724 87,274 22,082 8,611 941,320 * 593,456 363,537 327,787 Richmond 176,276 U97,515 1,059,822 247,228 30,162 6,443 1,166,260 I 892,431 451,186 403,402 Baltimore 163,742 156,725 474,879 57,695 36,670 8,721 675,291 I 373,209 223,141 157,387 Atlanta 87,741 78,177 358,550 81,060 20,359 8,455 466,650 525,480 167,692 189,846 Birmingham 37,572 23,237 149,586 15,996 13,278 3,690 200,436 118,534 42,923 26,936 Jacksonville 36,243 21,565 126,174 16,146 10,644 640 173,061 ! 108,335 38,351 28,868 Nashville 51,720 37,048 22,986 9,846 1,913 230,652 61,947 New Orleans 49,220 63,195 125,834 20,004 16,369 2,982 191,423 150,176 86,181 69,268 Chicago 709,438 721,870 2,757,925 342,875 137,861 24,265 3,605,224 2,040,440 1,089,010 960,319 Detroit 145,611 119,683 115,977 17,794 12,056 5,443 273,644 108,648 142,920 77,039 St. Louis 221,434 278,060 1,064,041 109,321 76,587 7,815 1,362,062 868,431 395,196 305,746 Little Rock 39,724 28,578 188,836 19,256 5,284 1,579 233,844 73,319 49,413 18,901 Louisville 66,519 76,811 265,447 24,555 19,267 4,251 351,233 183,135 105,617 86,265 Memphis 61,624 52,968 159,945 17,687 8,361 1,437 229,930 95,258 72,092 33,270 Minneapolis 212,890 129,722 887,986 71,175 14,014 4,887 1,114,890 658,781 205,784 177,033 Kansas City 266,264 350,407 1,999,754 264,013 60,255 7,401 2,326,273 1,251,622 621,821 481,669 Denver 62,751 52,193 274,725 22,204 12,399 ! 2,605 349,875 215,516 77,002 49,329 Omaha 82,511 66,129 439,635 39,866 12,305 j 1,714 534,451 107,709 93,732 Dallas 89,299 138,538 1,373,088 389,599 21,727 ! 2,511 1,484,114 632,840 530,648 233,770 El Paso 29,081 12,757 123,427 14,196 16,040 i 1,842 168,548 115,128 28,795 20,117 Houston 59,409 292,712 32,885 51,370 | 1,331 403,491 72,612 San Francisco 94,416 84,839 274,636 22,914 34,583 105,626 403,635 234,908 213,379 485,660 Los Angeles 59,222 48,705 268,351 26,536 13,272 4,040 340,845 79,281 Portland 43,204 29,260 107,181 8,474 11,905 3,063 162,290 120,297 40,797 48,237 Salt Lake City 38,764 33,644 363,381 36,606 7,963 1,412 410,108 304,857 71,662 51,201 Seattle 53,927 38,953 129,517 12,282 18,563 6,280 202,007 147,118 57,515 84,052 Spokane 24,573 17,783 130,774 10,816 5,043 539 160,390 118,652 29,138 18,880 Total:Jan.l6-Feb.l4,1920 6,161,522 7,210,635 22,998,659 4,748,036 1,697,090 561,056 30,857,271 21,493,121 12,519,727 10,835,514 Dec.l6,1919-Jan.l5,1920 6,667,004 8,083,973 24,545,481 5,214,411 1,990,362 745,086 33,202,847 14,043,470 i Includes 1,609 items amounting to $5,869,000, forwarded directly to banks in Baltimore, Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MAKCII, 1920. FEDERAL, RESERVE BULLETIN. 309 Operation of the Federal Reserve clearing system, Jan. 16 to Feb. 14, 1920—Continued. [Amounts in thousands of dollars.] Items forwarded to Items forwarded to Number of business other Federal Re- parent bank or to days in month. serve Banks and branch in same Federal Reserve Bank or branch. their branches. district. 1920 1919 Number. Amount. Number. Amount. Boston 386,944 358,407 New York 834,009 520,225 25,840 8,527 Buffalo 120,481 .28,714 26,937 17,750 Philadelphia 673,832 216,851 Cleveland 28,237 21,126 10,960 Cincinnati 11,361 6,248 7,710 4,479 Pittsburgh 53,181 39,923 22,088 6,228 Richmond 85,494 64,285 2,153 1,602 Baltimore 143,739 110,210 8,404 10,870 Atlanta 19,608 26,717 66,124 16,699 Birmingham... 15,099 12,244 27,768 49,180 Jacksonville 38,977 4,361 6,940 986 Nashville 17,172 7,955 10,804 2,333 New Orleans... 39,291 19,482 7,572 1,679 Chicago 209,814 37,379 7,358 13,428 Detroit 3,117 1,663 6,692 2,409 St. Louis 19,716 9,968 14,813 3,397 Little Rock.... 4,079 1,245 17,411 3,115 Louisville 5,951 1,735 I 1,283 502 Memphis 1,679 719 I 1,730 793 Minneapolis 121,841 69,476 Kansas City 224,191 88,204 ; 88,842 17,349 Denver 61,069 14,976 : 38,419 17,946 Omaha 28,864 8,873 ! 17,288 8,653 Dallas 153,826 24,017 ! 75,019 4,961 El Paso 37,432 12,835 S 18,399 5,051 Houston 25,839 27,631 i 18,329 6,973 San Francisco 26 16,435 7,332 83,868 21,393 Los Angeles 15,676 8,978 11,069 5,111 Portland 2,432 1,153 18,721 3,805 Salt Lake City. 4,642 22,738 7,642 14,725 Seattle 9,102 4,227 24,482 4,084 Spokane 3,265 3,651 15,291 6,889 Total: Jan. 16-Feb. 14,1920 13,416,395 11,783,548 715,958 277,877 Dec. 16,1919-Jan. 15,1920 . 3,837,934 2,016,665 763,149 322,700 Number of incorporated Number of member Number of nonmember banks other than banks in district. banks on par list. mutual savings banks Federal Reserve Bank. not on par list. 1920 1919 1920 1919 1920 1919 Boston 431 424 248 244 New York 761 722 326 321 Philadelphia 682 666 416 322 Cleveland 846 819 1,084 778 261 Richmond 591 568 568 312 1,195 Atlanta 431 422 470 289 1,104 1,290 Chicago 1,374 1,338 3,899 2,500 295 1,660 St. Louis 543 511 2,540 1,184 138 1,402 Minneapolis 926 S71 2,361 1,207 575 1,631 Kansas City 1,050 994 3,350 2,161 1,023 Dallas 762 735 1,229 249 1,184 San Francisco 743 655 920 103 148 Total: Feb. 14,192o 9,140 8,725 17,429 10,487 3,148 9,877 Jan. 15,1920. 8,702 16,985 10,246 3,566 9,853 i Includes 5.215 items, amounting to $2,015,000, forwarded direct to member banks in other Federal Reserve districts. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

310 FEDERAL RESERVE BULLETIN. MARCH. 1920. GROWTH OF THE FEDERAL RESERVE PAR COLLECTION SYSTEM, 1917-1920. Some idea of the growth of the Federal Re- practically steady growth of the collection sysserve Banks' clearing and check-collection sys- tem, as the result of the fuller use made of the tem for the past three years may be had from collection facilities of the system by the memthe following table and accompanying dia- ber banks. These facilities are constantly engrams showing the average number and larging with the growth in the number of banks amounts of items handled by all Federal Re- from which par collections are effected. For serve Banks during each month between March the period under review the number of member 16, 1917, and January 15, 1920, also changes banks shows a growth from 7,625 to 9,089, or in the number of member and nonmember of nearly 20 per cent, while the number of nonbanks remitting at par each month during the member banks on the par list has increased period under review. from 8,607 to 16,986, or about 100 per cent. Segregation of the number and amount of The Federal Reserve par collection service emitems has been made uniformly during the braces at present about 26,000 banks, or about period under review under three heads, viz: 90 per cent of all the banks in the United 1. Items drawn on banks in the Federal States, other than mutual sayings banks, Reserve city. which as a rule do not carry checking accounts. 2. Items drawn on banks in the district of It may be noted that while the number and each Federal Reserve bank outside amount of items collected has increased about the Federal Reserve bank city. sixfold, the amount of items collected from 3. On the Treasurer of the United States. banks in the Federal Reserve cities shows a In order to avoid duplication no account was relatively smaller increase, while the amount taken of items forwarded for collection by a of items drawn on banks outside the Federal Federal Reserve Bank to another Federal Re- Reserve cities and on the Treasurer of the serve Bank or branch. Comparison of both United States shows a proportionately larger the number and amount of items handled dur- increase. ing each month since March 16, 1917, shows a Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MARCH, 1920. FEDERAL RESERVE BULLETIN. 311 Growth of the Federal Reserve charing system, by monthly periods, from Apr. 15, 1917, to Jan. 15, 1920, inclusive. Average daily number of items handled. Average daily amount of items handled. Drawn on— Drawn on— Number• Number of !of nonmember j member Banks in! Banks in banks in; banks on j B R F a c e e n d i s t k e e y r s r . v a i e n l R F o d u e i e s d s t t s e e r i r i r d v c a e t e l I I ! U S u T r t n r a e e i t r a t e e o s s d f - . Total. B R F a e c e n d s it k e e y r s r v . a i e l n R F d o e u i e s d s t t s e e r i r i r d v c a e t e l o T f r S e U t a a s n t u i e t r s e e . d r Total. district, par list. city. ; city. 1917. Apr. 15. 31,162 168,607 12,582 212,351 $60,288,002 $32,666,959 | $2,643,408 $95,598,369 i 7,625 8,607 May 15.. 33,767 171,093 15,925 220,785 87,370,859 36,473,163 3,597,865 127,441,887 I 7,634 8,926 Jane 15.. 37,898 179,193 16,344 233,435 97,322,883 38,599,461 4,414,508 140,336,852 | 7,651 3,789 July 15.. 38,476 182,622 19,100 240,198 109,722,256 41,004,720 11,637,899 162,364,875 j 7,666 8.805 Aug. 15.. 36,727 175,625 19,533 231,885 98,075,919 40,353,278 9,701,569 148,130,766 ! 7.683 8,837 Sept. 15. 36,306 182,191 23,492 241,989 100,331,694 41,323,621 11,006,515 152,661,830 I 7,718 9,934 Oct. 15.. 40,591 212,935 26,797 280,323 128,271,466 47,476,204 13,518,566 189,266,236 | 7,747 9,052 Nov. 15.. 47,574 232,723 30,426 310,723 166,552,773 64,295,210 17,496,974 248,345,957 I 7,826 9,210 Dec. 15.. 47,678 240,756 33,806 322,240 171,723,439 84,441,761 27,179,053 283,343,253 ! 7,823 9.321 1918. Jan. 15. 48,549 253,458 38,130 340,137 148,033,108 89,065,135 21,116,293 258,214,536 7,909 9,268 Feb. 15.. 46,207 227,312 48,224 321,743 153,847,568 80,248,466 21,316,033 255,412,067 7,972 9,319 Mar. 15.. 51,408 259,531 58,991 369,930 153,701,375 113,134,162 25,827,757 292,663,294 8,013 9,425 Apr.15.. 55,034 271,506 59,228 385,768 159,441,188 98,201,962 31,563,675 289,206,825 8,059 9,450 May 15.. 49,569 287,061 60,771 397,401 178,372,385 114,099,520 30,928,185 323,400,090 8,113 9,475 June 15.. 51,055 295,056 77,750 423,861 164,539,000 113,407,619 39,054,003 317,000,622 8,165 9,710 July 15.. 63,549 391,264 82,536 537,349 192,220,658 143,751,620 47,181,467 383,153,745 8,212 9,761 Aug. 15.. 50,229 406,330 81,323 537,882 172,600,132 131,047,263 41,063,646 344,711,041 8,294 10,206 Sept. 15. 55,123 441,979 87,213 584,315 182,321,867 145,374,804 45,695,643 373,392,314 8,428 10,549 Oct. 15.. 64,931 495,441 106,539 666,911 208,639,006 169,025,374 51,048,149 428,712,529 8,510 10,318 Nov. 15.. 82,434 550,484 98,168 731,086 231,014,467 191,310,103 52,790,232 475,114,802 8,584 10,219 Dec. 14.. 85,174 590,685 135,173 811,032 219,162,199 167,471,893 60.766,938 447,401,030 8;612 10,409 1919. Jan. 15. 98,584 632,118 77,282 807,984 224,904,918 162,371,765 37,753,800 425,030,483 8,692 10,595 Feb. 15.. 90,944 599,951 126,051 816,946 198,935,424 156,360,759 63,221,002 418,517,185 8,717 10,622 Mar. 15.. 109,083 640,346 114,563 863,992 168,567,377 171,714,589 46,746,505 387,028,471 8,729 10,885 Apr. 15.. 138,817 686,512 137,228 962,557 197,456,121 167,142,262 49,329,926 413,928,309 8,758 11,060 May 15.. 129,378 665,641 157,820 952,839 176,737,129 163,067,746 45,278,441 385,083,316 8,788 11,261 June 15.. 132,688 696,457 118,248 947,393 196,594,573 191,330,944 48,316,599 436,242,116 8,825 11,782 July 15.. 149,902 737,007 95,986 982,895 218,737,336 194,300,102 49,869,067 462,906,505 8,848 12,071 Aug. 15.. 139,678 731,680 83,659 955,017 194,733,618 176,612,134 57,868,769 429,214,521 8,894 12,578 Sept. 15. 149,460 761,680 77,201 988,341 208,529,081 202,812,209 51,935,604 463,276,894 8,920 12,962 Oct. 15.. 164,761 824,862 93,437 1,083,060 235,072,612 223,417,562 45,272,641 503,762,815 8,955 13,852 Nov. 15.. 177,569 915,794 107,551 1,200,914 236,521,957 246,055,511 37,355,291 519,932,759 9,008 14,860 Dec. 15.. 182,347 975.095 88,071 1,245,513 251,531,229 254,594,746 36,506,264 542,632,239 9,055 15,851 1920. Jan.15. 197,562 1,028.259 78,160 1,303,981 270,143,956 264,521,801 29,612.240 | 564,277,997 9,089 16.986 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

312 FEDERAL RESERVE BULLETIN. MARCH. 1920. NUMBER OF BANKS ON PAR LIST, ALSO AVERAGE DAILY NUMBER AND AMOUNT OF ITEMS HANDLED BYER.BANKS, IW-1919. 600 600 500 500 400 400 300 300 ZOO ZOO 100 fOO 0 0 AVERAGE DAIWAMOUtiT OF ITEMS HANDLED DURING EACH MONTH, III MILLIONSOEDOLLARS. $$!$$ IOems drami cm US. Treasurer. 1.400.000 1.400.000 MO0.000 MO0.O00 1.000.000 H wm m 1.000.000 800.000 #00.000 4 w. ; 600.000 &^ 600.000 ¥i x*^O 400.000 i ^* IM I 100.000 200.000-A i 200.000 i I 0 A 0 AVERAGEDAILY'NUMBEROf'ITEMSHAH PLED DURIHG' EACh'MOtiTH. WflM Items dnxwncfcj&ajtte in,£JL3Banfc<Zbies. HHP Itemsdrawn, on &znJesou£sLde£'&£aAJca&as. ^M Items drawKorvU.S.Jreasurer. ^\< 30.000 30.000 2S.000 2S.00O ^!| 20.000 i I 20.000 1S.000 ^§ i at IS %? 1 •*» ikvX»* i i 15.000 10.000 »^, ^x\^ i^VX\ xxv" w 10.000 mm i i 14 '4I S.000 1 1 1i i i I S.000 i Ii Ii I i i i i II i I Ii i II i i I i i o 0 TOTAL NUMBER OF BANKS ON PAR LIST. WMMemJberJBanKs. JVonrMember JBarfcs: IH i >> 191? 1918 1919 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MARCH, 1920. FEDERAL RESERVE BULLETIN. 313 OPERATIONS OF THE FEDERAL RESERVE BANKS. Substantial increases in the volume of dis- and 126.5 millions, and a decrease in the count and note issue operations accompanied amount of 90-day paper by nearly 160 millions. by further declines in* gold and cash reserves Holdings of acceptances purchased in the open are some of the salient features of the develop- market show a slow but continuous decline ment of Federal Reserve banking during the from 575.8 to 531.7 millions, apparently as the four-week period between January 23 and result of the higher Federal Reserve rates re- February 20. cently adopted. Differences in the amounts of Fiscal operations of the Treasury included Treasury certificate holdings represent largely the redemption on Februar}^ 2 and 16 of amounts of temporary special certificates held balances of outstanding loan certificate series by the Federal Reserve Banks to cover adissued at the beginning of September and De- vances to the Government pending collection cember of the past year and the issue on Feb- of funds from depositary institutions. ruary 2 of about 305 millions of tax certificates Discounted paper held by the several banks maturing on March 15, the date of the first include amounts held under discount for other installment of income and excess profits tax Federal Reserve Banks. During the period payments. Notwithstanding a net reduction under review the Federal Reserve Banks of in the amount of outstanding Treasury cer- Richmond and Kansas City redeemed their retificates, the Federal Reserve Bank holdings of discounted paper, while the New York and paper secured by such certificates show an in- Philadelphia banks increased their rediscounts crease for the period of over 60 millions. Fol- from 75.4 to 93.9 millions, distributed among lowing the restoration of the differential in the Cleveland, Atlanta, Chicago, Minneapolis, favor of paper secured by Liberty notes and Kansas City, and Dallas banks. In the mean- Victory notes, as against ordinary commercial time the holdings of bankers' acceptances purpaper, the Federal Reserve Bank holdings of chased from the New York and Boston banks war paper thus secured increased 78.7 millions show a further decline from 48.7 to 30.4 while holdings of ordinary commercial paper, millions, the smaller amount being distributed subject at present to a practically uniform 6 among the Boston, Cleveland, Atlanta, Chiper cent discount rate, show an increase of cago, Kansas City, and San Francisco banks. 66.2 millions. At the closing date of the Members' reserve deposits as well as Govperiod total discounts held by the Federal. ernment deposits show moderate declines for Reserve Banks, 2,358.5 millions, were 205.1 the period, resulting in a decrease of net demillions in excess of the corresponding total posits from 1,817.8 to 1,785.8 millions. Fedreported four weeks before. Of the total dis- eral Reserve note circulation expanded during counts held on the two dates, about 65 per cent the period from 2,844.2 to 2,977.1 millions, or was war paper. On the more recent date, of at an average weekly rate of 33.2 millions, a total of 1,525.2 millions of such paper held while the banks' liabilities on Federal Reserve 706.9 millions, or 46.3 per cent, was secured by bank note circulation declined from 254.8 to Liberty bonds, 244.8 millions, or 16.1 per cent, 240.9 millions. by Victory notes, and 573.5 millions, or 37.6 Further export withdrawals, sales^of gold per cent, by Treasury certificates, as against held abroad and apparently also some ex- 45.4, 17.6, and 37 per cent of a total of 1,386.3 change of gold for other reserve cash, account millions of war paper reported four weeks for a reduction of 56.8 millions in gold reserves earlier. as against a gain of 4.4 millions in other cash For the period under review the average reserves. The result of the considerable note maturity of the discounted paper held by the expansion and the simultaneous decline in Federal Reserve Banks shows a considerable reserves is seen in the continuous decline of decrease, largely through increases in the the banks' reserve ratio from 44.8 to 42.7 per amounts of 15-day and 60-day paper by 182.1 cent. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

314 FEDERAL RESERVE BULLETIN. MARCH, 1920. Resources and liabilities of each Federal Reserve Bank at close of business on Fridays, Jan. 80 to Feb. 20, 1920. RESOURCES. [In thousands of dollars.] ! 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 . - j j K C a i n ty sa . s Dallas. F c S i r s a a c n n o - . Total. Gold and gold certificates: Jan. 30 9,239 136,008 1,190 14,067 2,521 8,523 24,278 2,891 7,294 302 6,948 11,895 225,156 Feb. 6 9,544 115,488 1,151 14,119 2,369 8,601 24,415 2 937 7,306 317 6,815 12,331 205,393 Feb. 13 9,556 113,966 942 10,190 2,289 8,574 24,349 2,895 7,248 361 6,525 15,530 202,425 Feb. 20 9,788 112,668 952 13,314 2,319 8,552 24,296 2,796 7,275 353 7,012 11,648 200,973 Gold settlement fund, Federal Reserve Board: Jan. 30 32,176 77,954 30,218 41,116 24,241 15,979 97,947 20,273 20,378 40,637 14,117 24,488 439,524 Feb. 6 20,455 70,049 28,850 40,120 36,357 21,579 88,924 19,652 21,797 46,734 13,574 26,069 434,160 Feb. 13 22,204 74,882 29,701 40,431 29,365 16,287 88,152 21,076 15,778 38,156 15,232 33,568 424,832 Feb. 20 48,897 43,078 27,283 41,044 28,356 21,581 73,988 13,309 20,253 31,865 16,044 30,440 396,138 Gold with foreign agencies: Jan. 30 8,345 41,956 9,146 9,374 5,602 4,116 13,604 5,373 3,087 5,487 2,972 5,259 114,321 Feb. 6 8,346 41,956 9,145 9,374 5,602 4,116 13,604 5,373 3,087 5,487 2,972 5,259 114,321 Feb. 13 8,236 41,406 9,026 9,252 5,528 4,061 13,426 5,303 3,046 5,415 2,933 5,190 112,822 Feb. 20 8,236 41,406* 9,026 9,252 5,528 4,061 13,426 5,303 3,046 5,415 2,933 5,190 112,822 Gold with Federal Reserve Agents: Jan. 30 72,129 281,778 81,721 122,298 39.204 59,938 217,271 57,703 33,755 39,430 32,369 81,830 1,119,426 Feb. 6 71,806 290,732 81,321 122,306 36,913 57,988 209,293 57,517 34,070 37,813 31,443 85,225 1,116,427 Feb. 13 73,713 299,877 84,168 123,439 35,004 56,464 204,398 59,184 34,342 38,420 31,655 80,911 1,121,757 Feb20 88,895 304,712 84,252 123,859 33,380 55,643 208,537 58,463 33,668 38,825 31,057 89,507 1,150,798 Gold redemption fund: Jan. 30 • 22,601 25,088 8,592 1,150 10,962 7,125 14,347 6,197 1,059 3,714 2,585 10,809 114,229 Feb. 6 25,647 25,191 10,665 434 7,011 5,542 20,782 5,025 416 5,276 3,487 11,783 121,259 Feb. 13 27,450 24,986 12,072 1,990 8,437 5,207 23,550 5,170 88 4,535 3,186 9,873 126,544 Feb. 20 13,992 24,918 12,451 1,103 9,721 5,417 17,443 4,768 142 3,993 3; 679 11,456 109,083 Total gold reserves: Jan. 30 144,490 562,784 130,867 188,005 82,530 95,681 367,447 92,437 65,573 89,570 58,991 134,281 2,012,656 Feb.6 135,798 543,416 131,132 186,353 88,252 97,826 357,018 90,504 66,676 95,627 58,291 140,667 1,991,560 Feb. 13 141,159 555,117 135,909 185,302 80,623 90,775 353,875 93,628 60,502 86,887 59,531 145,072 1,988,380 Feb. 20 • 526,782 133,964 188,572 79,304 95,254 337,690 84,639 64,384 80,451 60,725 148,241 1,969,814 Legal-tender notes, silver, etc.: Jan. 30 4,836 46,171 236 967 204 1,199 1,935 3,211 81 446 1,719 272 61,277 Feb.6 • 6,568 46,387 66 806 227 1,170 I 2,262 3,283 54 503 1,613 157 63,096 Feb. 13 6,530 47,851 184 575 263 1,332 I 1,7433,343 74 540 1,504 194 64,133 Feb. 20 6,035 48,620 149 802 309 1,725 2,478 3,511 62 645 1,096 194 65,626 Total cash reserves: Jan. 30 149,326 608,955 131,103 188,972 82,734 369,382 95,648 65,654 90,016 60,710 134,553 2,073,933 Feb.6 • 142,366 589,803 131,198 187,159 88,479 98,996 359,280 93,787 66,730 96,130 59,904 140,824 2,054,656 Feb. 13 147,689 602,968 136,093 185,877 80,886 92,107 355,618 96,971 60,576 87,427 61,035 145,266 2,052,513 Feb. 20 175,843 575,402 134,113 189,374 79,613 96,979 340,168 88,150 64,446 81,096 61,821 148,435 2,035,440 Bills discounted: Secured by Government war obligations] — Jan. 30 112,933 595,495 159,272 96,940 76,305 63,749 153,642 48,300 23,883 32,806 45,476 49,091 1,457,892 Feb.6 116,703 581,479 154,695 90,401 73,033 62,143 167,142 51,046 24,813 30,745 47,925 51,432 1,451,557 Feb. 13 106,651 591,022 154,385 100,866 75,594 61,619 165,571 50,405 29,144 32 636 49,246 52,423 1,469,562 Feb. 20 100,581 616,710 154,329 112,845 78,271 61,081 175,515 49,686 28,473 45,838 50,523 51,351 1,525,203 All other- Jan. 30 48,085 166,632 35,868 46,555 23,455 34,684 161,272 45,062 41,233 55,141 17,035 41,443 716,465 Feb.6 52,180 170,873 42,068 49,459 24,655 35,034 166,735 48,056 44,924 57,140 16,275 44,583 751,982 Feb. 13 , 8.1_,,_88_0. 206,544 45,914 49,120 24,914 35,645 175,464 45,667 42,470 54,328 15,750 46,177 823,873 Feb.20 i 77,417 202,684 45,454 49,635 26,036 38,157 178,654 52,595 41,699 54,663 17,304 49,023 833,321 Bills bought in open market: 2 ' Jan. 30 51,511 191,215 7,825 73,355 10,748 11,098 70,807 10,860 5,691 7,910 1,037 119,256 561,313 Feb.6 48,877 196,876 7,861 73,955 9,917 12,648 70,086 9,466 4,933 7,246 1,072 111,813 554,750 Feb. 13 22,984 204,561 7,194 76,182 10,117 17,599 73,636 9,798 4,537 11,851 1,818 102,323 542,600 Feb. 20 16,417 217,314 7,094 69,611 9,738 17,449 75,088 9,802 3,012 10,315 1,768 94,095 531,703 United States Government bonds: Jan. 30 1,457 1,385 833 1,235 375 4,477 1,153 116 3,966 2,632 27,036 Feb.6 1,457 1,385 833 1,235 114 4,477 1,153 116 3,966 2,633 26,776 Feb. 13 1,457 1,385 833 1,235 114 4,477 1,153 116 3,966 2,632 26,775 Feb. 20 1,457 1,385 833 1,235 114 4,477 1,153 116 3,966 2,632 26,775 United States Victory notes: Jan. 30 50 10 64 Feb.6 50 10 63 Feb. 13 50 10 63 Feb. 20 50 10 63 United States certificates of indebtedness: Jan. 30 21,896 69,240 31,261 23,571 12,260 15,665 40,500 17,560 8,480 15,323 8,300 12,365 I 276,421 Feb.6 21,842 68,202 31,013 24,012 12,260 15,665 40,474 17,162 8,480 17,240 8,300 11,414 I 276,064 Feb. 13 23,627 66,482 36,938 23,421 15,260 15,665 41,328 17,291 8,480 19,169 9,300 13,356 i 290,317 Feb. 20 21,584 62,171 30,921 23,436 12,260 15,665 40,328 17,479 8,480 16,411 8,300 11,575 268,610 Total earning assets: Jan. 30 234,964 1,024,089 235,611 241,264 124,003 125,575 430,698 122,935 79,403 120,048 75,814 224,787 I 3,039,191 Feb. 6 240,141 1,018,937 237,022 238,670 121,100 125,607 448,914 126,883 83,266 121,239 77,538 221,875 I 3,061,192 Feb. 13 1235,681 1,070,116 245,816 250,432 127,120 130,645 460,476 124,314 84,747 126,852 80,080 216,911 I 3,153,190 Feb. 20 1216,538 1,100,386 239,183 256,370 127,540 !l32,469 474,062 130,715 81,780 136,095 81,861 208,676 ! 3,185,675 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MABCH, 1920. FEDERAL RESERVE BULLETIN. 315 Resources and liabilities of each Federal Reserve Bank at close of business on Fridays, Jan, 80, to Feb. 20,1920—Continued. RESOURCES—Continued. [In thousands of dollars.] Boston. Y N o e r w k. [d P e h lp il h a 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 . - j K C a i n ty s . as Dallas. F C S r is a a c n n o - . ! j Total. _L Bank premises: i Jan. 30 1,106 3,094 500 640 553 480 2,116 356 515 462 506 231 10,559 Feb. 6.. ; 1,110 3,094 500 640 553 503 2,116 356 515 462 506 231 10,586 Feb. 13 1,113 3,094 500 641 553 506 2,116 515 462 506 231 11,103 Feb.20 1,117 3,094 500 641 563 506 2,116 866 515 462 533 231 11,144 Uncollected items and other deductions from gross deposits: Jan. 30 64,644 211,926 76,407 74,597 81,640 37,701 116,389 66,196 19,696 77,363 51,608 54,961 933,128 Feb. 6 58,303 204,014 69,626 73,947 66,533 39,044 115,782 66,638 20,530 73,831 55,795 52,928 896,971 Feb. 13 94,014 234,838 87,732 85,491 87,496 47,032 121,409 81,341 20,328 84,601 53,915 54,136 1,052,333 Feb.20 79,175 234,058 92,312 87,794 70,459 42,806 129,046 73,675 21,184 83,590 58,704 56,850 1,029,653 Five per cent redemption fund against Federal Reserve bank notes: Jan. 30 1,072 2,729 1,475 1,155 435 782 1,660 336 406 977 568 665 12,260 Feb.6 1,072 2,668 1,475 1,059 715 843 1,483 237 482 971 562 665 12,232 Feb.13........ 1,072 2,681 1,475 1,124 331 827 1,799 317 290 971 562 665 12,114 Feb.20 1,072 2,556 1,475 1,095 503 855 2,079 322 570 970 562 665 12,724 All other resources: Jan. 30 348 1,103 569 465 569 294 535 279 129 517 233 300 5,341 Feb. 6.... 489 921 353 309 693 131 820 283 95 396 195 363 5,048 Feb. 13... 282 1,008 448 279 285 130 568 241 59 336 162 324 4,122 Feb.20 339 948 256 299 356 138 575 284 63 238 131 224 3,851 Total resources: Jan. 30 451,460 851,896 445,665 507,093 289,934 261,712 920,780 285,750 165,803 289,383 189,439 415,497 6,074,412 Feb.6.... 443,481 819,437 440,174 501,784 278,073 265,124 928,395 288,184 171,618 293,029 194,500 416,886 6,040,685 Feb.13..... 479,851 914,705 472,064 523,844 296,671 271,247 941,986 304,050 166,515 300,649 196,260 417,533 6,285,375 Feb.20 474,084 916,444 467,839 535,573 279,034 273,753 948,046 294,012 168,558 302,451 203,612 415,081 6,278,487 1 Includes bills discounted for other Federal Reserve Banks: Jan. 30 8,900 15,000 48,940 14,950 •87,790 Feb. 6 i " 600 14,040 54,200 19,341 96,181 Feb. 13 ... I I 8', 500 15,000 42,195 5,000 5,000 21,935 97,680 8 Inc F lu e d b e .2 s 0 b ankers' acceptances i 4,915 11,500 40,890 4,274 9,950 22,390 93,919 bought from other Federal Reserve Banks: With their indorsement- Jan. 30 2,978 1,622 4,600 Feb. 6 545 950 1,495 Feb. 13 5,036 5,087 5,090 5,050 20,263 Feb.20 5,036 5,087 5,090 5,050 20,263 Without their indorsement- Jan. 30 3,579 18,621 41 3,408 25,649 Feb. 6.. 3,250 15,619 3,408 22,277 Feb. 13 3,250 11,996 3,408 18,654 Feb.20 3,250 3,455 3,408 10,113 LIABILITIES. Capital paid in: Jan. 30... 7,198 22,399 3,469 12,525 4,081 3,112 4,021 3,419 5,837 87,892 Feb. 6 7,210 23,453 3,485 12,541 4,083 3,123 4,031 3,484 5,874 89,119 Feb. 13.... 7,210 23,804 3,493 12,617 4,094 3,127 4,046 3,482 5,968 89,674 Feb.20.. 7,210 23,796 3,504 12,637 4,122 3,133 4,047 3,484 5,974 90,531 Surplus fund: Jan. 30 8,359 45,082 4,695 14,292 3,724 3,569 6,116 3,030 7,539 120,120 Feb. 6 8,359 45,082 4,695 14,292 3,724 3,569 6,116 3,030 7,539 120,120 Feb.13 8,359 45,082 4,695 14,292 3,724 3,569 6,116 3,030 7,539 120,120 Feb.20 8,359 45,082 4,695 14,292 3,724 3,569 6,116 3,030 7,539 120,120 Government deposits: Jan. 30 4,777 31,510 2,527 4,284 4,268 1,467 3,629 2,856 5,361 72,974 Feb. 6 3,762 4,602 2,521 7,747 3,711 3,575 2,719 2,514 5,807 42,446 Feb. 13 851 7,942 327 1,490 1,733 368 1,740 1,232 3,100 24,218 Feb.20 2,718 38,035 2,799 4,254 3,192 1,685 3,208 2, ©20 6,578 75,587 Due to members—reserve account: Jan. 30 113,721 729,545 56,250 269,728 68,427 51,366 86,714 63,079 117,656 1,850,712 Feb. 6 109,653 734,709 100,971 56,937 272,792 69,513 53,175 93,723 65,055 118,919 1,869,438 Feb. 13..... 118,967 730,617 92,946 56,625 253,585 72,270 50,096 88,719 62,461 118,138 1,837,865 Feb.20 115,353 707,113 91,309 58,952 259,363 69,403 50,072 91,613 67,171 118,807 1,828,891 Deferred availability items: Jan. 30 54,992 150,124 67,665 34,044 86,132 50,897 13,638 64,840 32,709 33,767 720,520 Feb. 6... 41,364 120,666 55,980 34,757 79,180 52,894 15,432 62,260 34,134 36,867 654,735 Feb. 13.... 67,960 191,979 84,987 43,372 112,232 65,621 16,036 75,745 39,376 37,198 880,451 Feb.20 59,440 179,458 83,115 38,945 104,099 56,872 17,158 72,261 38,452 33,427 815,606 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

316 FEDERAL RESERVE BULLETIN. MARCH, 1920. Resources and liabilities of each Federal Reserve Bank at close of business on Fridays, Jan. 30 to Feb. 20, 1920—Continued. LI ABILITIE S—Continued. [In thousands of dollars.] 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. i s. i a M p 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. Other deposits, including foreign Government credits: Jan. 30 6,486 42,394 6,493 i,022 3,654 2,652 9,965 3,859 2,261 4,011 2,171 5,450 95,418 Feb. 6 9,427 40,045 6,928 .,236 3,720 2,674 10,072 3,767 2,314 3,890 2,070 4,733 95,876 Feb. 13 5,510 42,713 7,612 >,065 3,624 2,663 9,978 4,009 2,184 3,693 2,036 6,957 97,044 Feb. 20 5,497 42,165 6,796 1,116 3,620 2,766 9,741 3,831 2,234 3,665 2,131 6,804 95,366 Total gross deposits: Jan. 30 179,976 953,573 176,702 208,930 136,435 95,473 370,109 127,451 68,732 159,194 100,815 162,234 2,739,624 Feb. 6 164,206 900,022 167,888 202,299 124,328 96,889 369,791 129,885 74,496 162,592 103,773 166,326 2,662,495 Feb. 13 193,288 973,251 186,999 209,703 143,353 102,987 377,285 143,633 68,684 169,897 105,105 165,393 2,839,578 Feb. 20 183,008 966,771 183,834 223,995 126,339 103,462 377,457 133,298 71,149 170,747 109,774 165,616 2,815,450 Federal Reserve notes in actual circulation: Jan. 20 234,991 769,170 222,802 256,556 130,777 142,090 481,109 134,209 81,635 99,565 71,677 226,363 2,850,944 Feb. 6 242,256 788,121 225,836 257,936 130,906 143,916 488,999 134,455 81,645 100,259 73,868 223,578 2,891,775 Feb. 13 249,453 809,254 238,871 272,544 130,529 144,173 495,197 136,668 82,386 100,539 74,499 224,974 2,959,087 Feb. 20 254,247 817,411 238,059 270,050 129,632 146,262 501,228 137,133 82,141 101,563 76,782 222,616 2,977,124 Federal Reserve bank notes in circulation—net liability: Jan. 30 19,369 50,853 27,567 21,439 11,794 15,278 39,790 15,359 8,070 19,471 11,680 250,530 Feb. 6 19,649 51,090 27,607 21,116 11,780 15,220 39,210 14,976 7,995 18,902 9,628 11,607 248,780 Feb. 13 19,460 50,467 27,233 20,965 11,678 14,860 38,633 14,778 7,899 18,847 9,398 11,592 245,810 Feb. 20 19,096 49,098 26,402 20,289 11,645 14,698 37,908 14,515 7,692 18,684 9,727 11,104 240,858 All other liabilities: Jan. 30. 1,567 10,819 1,890 1,544 711 707 2,955 926 685 1,016 638 1,844 25,302 Feb. 6 1,801 11,669 2,138 1,807 841 919 3,562 1,061 790 1,129 717 1,962 28,396 Feb. 13 2,081 12,847 2,256 2,011 890 1,039 3,962 1,153 850 1,204 746 2,067 31,106 Feb. 20 2,164 14,286 2,549 2,256 1,058 1,132 4,524 1,220 874 1,294 815 2,232 34,404 Total liabilities: Jan. 30 451,460 1,851,896 445,665 507,093 289,934 261,712 920,780 285,750 165,803 289,383 189,439 415,497 6,074,412 Feb. 6 443,481 1,819,437 440,174 501,784 278,073 265,124 928,395 288,184 171,618 293,029 194,500 416,886 6,040,685 Feb. 13 479,851 1,914,705 472,064 523,844 296,671 271,247 941,986 304,050 166,515 300,649 196,260 417,533 6,285,375 Feb. 20 474,084 1,916,444 467,839 535,573 279,034 273,753 948,046 294,012 " "">, 558302,451 203,612 415,081 6,278,487 MEMORANDA. Contingent liability as indorser on: Discounted paper rediscounted with other Federal Reserve Banks- Jan. 30 50,000 32,790 5,000 87,790 Feb. 6 49,800 41,381 5,000 96,181 Feb. 13 49,735 47,945 97,680 Feb. 20 48,100 45,819 93,919 Bankers' acceptances sold to other Federal Reserve Banks- Jan. 30 4,600 4,600 Feb. 6 1,495 1,495 Feb. 13 20,263 20,263 Feb. 20 20,263 20,263 Maturities of bills discounted and bought, also of Treasury certificates of indebtedness. fin thousands of dollars.] Within 15 16 to 30 31 to 60 61 to 90 Over 90 days. days. days. days. days. Total. Bills discounted: Jan. 30 ,385,117 206,267 309,576 255,093 18,304 2,174,357 Feb. 6 ,432,954 172,123 320,861 261,197 16,404 2,203,539 Feb. 13 ,457,971 223,771 357,350 239,269 15,074 2,293,435 Feb. 20 ,511,016 219,421 425,383 188,067 14,637 2,358,524 Bills bought: Jan. 30 115,267 127,669 249,208 69,169 561,313 Feb. 6 123,716 136,158 222,786 72,090 554,750 Feb. 13 137,611 127,339 207,592 70,058 542,600 Feb. 20 139,153 117,033 197,367 78,150 531,703 United States certificates of indebtedness: Jan. 30 , 13,061 4,586 28,524 46,152 184,098 276,421 Feb.6 14,472 4,500 11,179 6,000 239,913 276,064 Feb. 13 24,053 6,000 10,853 5,500 243,911 290,317 Feb. 20 5,772 11,570 19,337 4,000 227,931 268,610 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MARCH, 1920. FEDERAL, RESERVE BULLETIN. 317 FEDERAL RESERVE NOTES. Federal Reserve note account of each Federal Reserve Bank at close of business on Fridays, Jan. 30 to Feb. 20, 1920. [Tn thousands of dollars.] B to os n - . Y N o e r w k. P d h e i l l - a- C la le n v d e . - m R o ic n h d - . la A n t t - a. c C a h g i- o. Lo S u t. is. M ap i o n l n i e s. - K C a i n ty s . as Dallas. F S ra a n n - Total. phia. cisco. Federal Reserve notes: Received from agents- Jan 30 246,496 898,612 232,709 268,746 135,555 146,338 512,616 153,298 83,511 106,247 75,691 270,964 3,130,783 Feb. 6 248,173 890,621 237,728 271,834 134,463 148,438 520,938 152,812 83,426 106,320 76,940 267,959 3,139,652 Feb. 13. 254,900 907,429 251,076 283,447 135,154 148,816 523,363 152,779 83,348 106,647 77,270 263,745 3,187,974 Feb. 20 262,182 910,635 249,499 283,846 134,780 151,858 540,602 154,278 83,274 107,952 79,622 263,261 3,221,789 Held by banks— Jan.30 11,505 129,442 9,907 12,190 4,778 4,248 31,507 19,089 1,876 6,682 4,014 44,601 279,839 Feb.6 5,917 102,500 11,892 13,898 3,557 4,522 31,939 18,357 1,781 6,061 3,072 44,381 247,877 Feb.13 5,447 98,175 12,205 10,903 4,625 4,643 28,166 16,111 962 6,108 2,771 38,771 228,887 Feb.20 7,935 93,224 11,440 13,796 5,148 5,596 39,374 17,145 1,133 6,389 2,840 40,645 244,665 In actual circulation— Jan.30 234,991 769,170 222,802 256,556 130,777 142,090 481,109 134,209 81,635 99,565 71,677 226,363 2,850,944 Feb.6 242,256 788,121 225,836 257,936 130,906 143,816 488,999 134,455 81,645 100,259 73,868 223,578 2,891,775 Feb.13 249,453 809,254 238,871 272,544 130,529 144,173 495,197 136,668 82,386 100,539 74,499 224,974 2,959,087 Feb.20..... 254,247 817,411 238,059 270,050 129,632 146,262 501,228 137,133 82,141 101,563 76,782 222,616 2,977,124 Gold deposited with or to credit of Federal Reserve agent: Jan.30 72,129 281,778 81,721 122,298 39,204 59,938 217,271 57,703 33,755 39,430 32,369 81,830 1,119,426 Feb.6 71,806 290,732 81,321 122,306 36,913 57,988 209,293 57,517 34,070 37,813 31,443 85,225 1,116,427 Feb. 13 73,713 299,877 84,168 123,439 35,004 56,646 204,398 59,184 34,342 38,420 31,655 80,911 1,121,757 Feb.20 88,895 304,712 84,252 123,859 33,380 55,643 208,537 58,463 33,668 38,825 31,057 89,507 1,150,798 Paper delivered to Federal Reserve agents: Jan.30 212,529 951,245 155,901 210,819 101,972 108,953 385,610 104,222 60,075 95,847 63,548 197,226 2,647,947 Feb. 6 217,760 946,763 171,789 204,533 102,972 105,773 403,867 108,568 66,549 95,131 65,272 201,284 2,690,261 Feb. 13 211,515 1,000,085 169,852 219,989 104,072 114,335 414,584 105,823 65,944 98,549 66,814 189,614 2,761,176 Feb. 20 194,415 1,034,865 181,469 229,750 110,787 115,654 429,163 112,083 62,493 110,792 69,595 183,092 2,834,158 Federal Resm:e note account of each Federal Reserve agent at close of business on Fridays, Jan. 80 to Feb. 20, 1920. [In thousands of dollars.] New Phila- Cleve- Rich- Chi- St. Minne- Kansas San Boston. York. del- land. mond. cago. Louis. apolis. City. Dallas. Fran- Total. phia. cisco. Federal Reserve notes: Received from Comptroller- Jan. 30 483,600 2,008,720 510,780 489,200 305,860 302,000 860,120 299,600 154,080 207,300 145,980 419,880 6,187,120 Feb.6 487,600 2,024,440 510,780 491,340 305,860 305,000 868,520 299,900 154,080 207,300 146,980 420,480 6,222,280 Feb.13 498,520 2,046,240 528,780 505,140 305,860 306,600 878,600 300,900 154,080 207,820 146,980 420,480 6,300,000 Feb.20 511,960 2,052,940 538,380 513,840 308,360 311,000 896,440 302,800 155,080 210,320 149,780 422,000 6,372,900 Returned to Comptroller- Jan. 30 205,284 1,001,388 256,771 190,534 140,562 103,542 320,954 125,302 60,669 93,393 52,504 2,689,869 Feb.6 208,607 1,012,819 260,172 193,526 142,854 105,492 328,932 127,488 61,354 95,010 53,430 142,571 2,732,255 Feb.13 210,700 1,019,811 263,324 196,393 144,762 106,834 333,827 129,821 62,732 96,403 54,655 146,855 2,766,147 Feb.20 212,518 1,023,305 265,741 198,974 146,386 107,837 339,688 131,542 63,406 97,998 55,253 149,289 2,791,937 Chargeable to Federal Reserve agent- Jan. 30 278,316 1,007,332 254,009 298,666 165,298 198,458 539,166 174,298 93,411 113,907 93,476 280,914 3,497,251 Feb.6 278,993 1,011,621 250,608 297,814 163,006 199,508 539,588 172,412 92,726 112,290 93,550 277,909 3,490,025 Feb.13 287,820 1,026,429 265,456 308,747 161,098 199,766 544,773 171,079 91,348 111,417 92,325 273,595 3,533,853 Feb. 20 299,442 1,029,635 272,639 314,866 161,974 203,163 556,752 171,258 I 91,674 112,322 94,527 272,711 3,580,963 In hands of Federal Reserve agent— Jan.30 31,820 108,720 21,300 29,920 29,743 52,120 26,550 21,000 9,900 17,785 9,950 366,468 Feb.6 30,820 121,000 12,880 25,980 28,543 51,070 18,650 19,600 9,300 5,970 16,610 9,950 350,373 Feb.13 32,920 119,000 14,380 I 25,300 25,944 50,950 21,410 18,300 8,000 4,770 15,055 9,850 345,879 Feb.20 37,260 119,000 23,140 31,020 27,194 51,305 16,150 16,980 8,400 4,370 14,905 9,450 359,174 Issued to Federal Reserve Bank less amount returned to Federal Reserve agent for redemp- I tion— j Jan. 30 1246,496 898,612 232,709 268,746 135,555 1146,338 512,616 153,298 83,511 108,247 75,691 270,964 3,130,783 ~Fe b' . 6" 248,173 890,621 237,728 271,834 134,463 148,438 520,938 152,812 83,426 106,320 76,940 267,959 3,139,652 Feb.13 254,900I 907,429 251,076 283,447 135,154 148,816 523,363 152.779 83,348 106,647 77,270 263,745 3,187,974 Feb.20 262,182 910,635 249,499 283,846 .134,780 151,858 540,602 154,278 83,274 107,952 79,622 263,261 3,221,789 Collateral held as security for outstanding notes: Gold and gold certificates- Jan. 30 183,740 28,025 2,500 4,000 13,052 8,831 240,148 Feb.6 183,740 28,025 2,500 4,000 13,052 8,831 240,148 Feb.13 183,740 32,025 2,500 4,000 13,052 8,831 244,148 Feb.20 183,740 29,025 2,500 4,000 13,052 8,831 241,148 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

318 FEDERAL RESERVE BULLETIN. MARCH, 1920. Federal Reserve note account of each Federal Reserve agent at close of business on Fridays, Jan. SO to Feb. 20,1920—Oontd. [In thousands of dollars.] Boston. New PMa. C la le n v d e . - m R o ic n h d - . la A nt 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 an it s y a . s Dallas. c F i S r s a a c n n o - . Total. Collateral held as security for outstanding notes—Contd. Gold redemption fund- Jan. 30 16,129 8,038 14,332 14,273 2,204 2,438 9,126 3,773 1,403 3,570 5,554 12,327 93,167 Feb.6 14,806 16,992 10,932 14,281 3,913 3,488 9,149 3,587 1,718 1,953 4,628 17,295 102,742 Feb.13 13,713 16,137 12,779 11,414 2,004 4,146 9,254 3,254 1,990 2,560 5,340 14,988 97,579 Feb. 20 14,895 15,972 15,363 14,834 3,380 3,143 9,393 3,533 1,316 2,965 4,742 13,354 102,890 Gold settlement fund, Federal Reserve Board- Jan. 30 56,000 90,000 67,389 80,000 37,000 55,000 208,145 49,930 19,300 35,860 17,984 69,503 786,111 Feb.6 57,000 90,000 70,389 80,000 33,000 52,000 200,144 49,930 19,300 35,860 17,984 67,930 773,537 Feb. 13 60,000 100,000 71,389 80,000 33,000 50,000 195,144 51,930 19,300 35,860 17,484 65,923 780,030 Feb. 20 74,000 105,000 80,000 30,000 50,000 199,144 50,930 19,300 35,860 17,484 76,153 806,760 Eligible paper, minimum required i— Jan. 30 174,367 616,834 150,988 146,448 96,351 86,400 295,345 95,595 49,756 66,817 43,322 189,134 2,011,357 Feb.6 176,367 599,889 156,407 149,528 97,550 90,450 311,645 95,295 49,356 68,507 45,497 182,734 2,023,225 Feb. 13 181,187 607,552 166,908 160,008 100,150 92,170 318,965 93,595 49,006 68,227 45,615 182,834 2,066,217 Feb. 20 173,287 605,923 ; 165,247159,987 101,400 96,215 332,065 95,815 49,606 69,127 48,565 173,754 2,070,991 * For actual amounts see "Paper delivered to Federal Reserve agent," on p. 317. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MARCH,, 1920. FEDERAL RESERVE BULLETIN. 319 CONDITION OF MEMBER BANKS IN SELECTED CITIES. For the period between January 16 and Banks under discount for reporting member February 13 reports from over 800 member banks increased from 1,095.5 to 1,242.5 millions. banks in leading cities indicate a continuous These amounts represent about 81 and 85 decline, totaling about 162 millions, in United per cent of the total amounts of war paper States securities held. United States bonds, held on the respective dates by the Federal including Liberty bonds but exclusive of Reserve Banks. The amount of other paper circulation bonds, show a decline during the held under discount for reporting member period from 622.6 to 594.5 millions, Victory banks by the Federal Reserve Banks went notes, a decline from 226.1 to 212.1 millions, up from 661.9 to 740.4 millions, or from 88 to and Treasury certificates, largely as the result 90 per cent of the total paper of this class held. of redemptions by the Government on or The total amount of paper held under discount before maturity, a decline from 815.9 to 695.9 for reporting members shows an increase for millions. Loans secured by Government war the four weeks from 1,757.4 to 1,982.9 milobligations (less rediscounts) show a decrease lions, or from 83.7 to 86.5 per cent of the total from 1,002.2 to 922.4 millions. Of the total discounts held by the Federal Reserve Banks amount of these loans held at the more recent on the respective dates. date, 639.0 millions, or 69.3 per cent, was Total loans and investments, exclusive of secured by Liberty bonds, 264.2 millions, or rediscounts with the Federal Reserve Banks, 28.6 per cent, by Victory notes, and 19.2 show a falling off for the period of 191.8 milmillions, or 2.1 per cent, by Treasury certifi- lions, and an even larger decrease for the cates, compared with 692.9 millions of paper member banks in New York City. This desecured by Liberty bonds, 292.4 millions of crease is, however, more than fully offset by paper secured by Victory notes, and 16.9 an increase in bills discounted and rediscounted millions of paper secured by Treasury cer- with Federal Reserve Banks. tificates held four weeks previous. Redemption of Treasury certificates and Loans secured by stocks and bonds show Government expenses considerably in excess continuous reduction from 3,370.1 to 3,232.4 of revenues account for the net withdrawal millions, though it should be noted that during the period of 266.3 millions of Governliquidation of these loans is limited almost ment deposits, the amount of 156.8 millions entirely to New York City. As against the being the lowest Friday night balance carried considerable reduction in these loans and in with reporting banks by the Government loans secured by United States securities, all since the beginning of last year. Other other loans and investments (exclusive of demand deposits (net), in keeping with the rediscounts with Federal Reserve Banks) reduction in the banks' loan accounts, show show a steady and fairly uniform increase from a decline of 189.3 millions, a larger reduction 9,589. 7 to 9,776.9 millions. at the banks in Federal Reserve Bank and War paper rediscounted with and held by branch cities being offset in part by the in- Federal Reserve Banks for reporting member crease shown for country banks located outside banks declined from 299.8 to 280.5 millions, Federal Reserve Bank and branch centers. while Federal Reserve Bank holdings of other Gains of time deposits aggregated 34.6 milpaper rediscounted by reporting members lions, notwithstanding a loss of 20.7 millions increased from 656.3 to 736.9 millions. In under this head shown for the banks in New addition, the Federal Reserve Banks show an York City. |gg increase from 801.3 millions to 965.5 millions Reserve balances with the Federal Reserve in the total of collateral notes held under Banks, largely as the result of large withdiscount for reporting member banks. Of drawals of Government deposits, declined 75.6 the latter total, all but 3.5 millions was war millions, while cash in vault shows an increase paper. During the same period the total of about 6 millions. amount of war paper held by Federal Reserve Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

320 FEDERAL RESERVE BULLETIN. MARCH, 1020. Principal resource and liability items 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 Jan. 23 to Feb. 13, 1920. 1. ALL REPORTING MEMBER BANKS. [In thousands of dollars.] New Phila- At- Minne- Kansas San York !deIphia. lanta. Ohto*o- Louis. apolis. City. Dallas. F ci r s a c n o - . Total. Number of reporting i banks: i Jan. 23 ! 46 112 107 35 804 Jan. 30 ! 112 107 804 Feb. 6 112 107 804 Feb. 13 46 112 107 804 United States bonds to | secure circulation: • Jan. 23 13,011 48,887 11,097 41,841 26,296 14,015 20,877 17,178 7,120 14,464 19,573 34,605 268,964 Jan. 30 13,061 48,887 11,097 41,841 26,296 14,015 20,926 17,178 7,120 14,564 19.573 34,605 269,163 Feb. 6. ! 13,011 48,887 11,097 41,841 26,296 14,015 20,927 17,177 7,170 14,664 19,573 34,605 269,263 Feb. 13 ! 13,011 48,637 11,097 41,842 26,551 14,015 20,929 17,177 7,170 14,627 19,573 34,605 269,234 Other United States ! bonds, including Lib- j erty bonds: i Jan. 23 ! 14,231 254,771 29,542 61,069 36,148 28,347 58,978 14,324 10,651 25,301 18,445 61,736 613,543 Jan. 30 ! 14,377 247,721 27,817 61,467 35,063 25,734 60,009 14,729 10,549 22,356 18,604 62,164 600,590 Feb. 6 1 14,399 242,467 27,697 60,879 35,126 30,021 14,497 10,760 22,122 18,237 62,738 597,942 Feb. 13 ! 14,606 I 239,734 27,311 62,185 35,109 28,915 59,108 14,250 10,566 22,152 18,335 62,248 594,519 United States Victory I notes: i Jan. 23 i 7,715 I 85,508 12,265 24,077 10,778 7,529 43,031 4,548 2,512 6,756 3,734 13,387 221,840 Jan. 30 ; 7,664 ! 81,677 11,936 23,979 10,379 9,334 41,294 4,488 2,467 6,398 3,565 13,223 216,404 Feb. 6 ! 7,706 82,147 11,895 23,697 10,052 7,582 40,391 4,287 2,454 5,647 3,924 12,535 212,317 Feb. 13 ! 7,855 ! 83,282 11,511 23,262 10,032 7,337 39,956 4,146 2,446 5,310 4,081 12,839 212,057 United States certificates i of indebtedness: Jan. 23 40,829 297,800 55,538 57,421 26,542 34,714 118,111 22,622 I 15,879 15,536 29,967 56,528 771,487 Jan. 30 40,234 290,829 52,974 57,780 25,748 33,789 118,710 21,928 15,752 15,912 29,981 54,856 758,493 Feb. 6 : 33,354 305,754 51,545 55,078 22,428 31,679 106,674 21,407 14,818 11,236 31,084 46,011 731,068 Feb. 13 i 31,766 289,283 49,900 54,128 21,338 26,986 106,169 19,801 13,222 10,779 29,541 42,982 695,895 Total United States se- : curities owned: ; Jan. 23 75,786 108,442 184,408 99,764 84,605 240,997 58,672 36,162 62,057 71,719 166,256 1,875,834 Jan. 30 ! 75,336 669,114 103,824 185,067 97,486 82,872 240,939 58,323 i 35,888 59.230 71,723 164,848 1,844,650 Feb. 6 68,470 679,255 102,234 181,495 93,902 83,297 226,991 57,368 35,202 53,669 72,818 155,889 1,810,590 Feb. 13 67,238 660,936 99,819 181,417 93,030 77,253 226,162 55,374 33,404 52,868 71,530 152,674 1,771,705 Loans secured by United States bonds, Victory notes, and certificates: \ Jan. 23 | 47,935 518,079 85,857 87,213 35,798 23,556 97,210 30,572 | 15,21720,782 6,928 32,016 1,001,163 Jan. 30 j 39,753 498,252 84,580 85,388 34,769 22,771 96,310 31,486 i 15,382 19,769 7,508 31,639 967,607 Feb. 6 39,553 476,307 80,542 84,494 34,236 22,116 97,399 30,023 14,985 19,720 7,953 31,449 938,777 Feb. 13 j 39,941 462,764 79,818 84,659 33,199 22,103 97,464 29,396 15,100 19,559 7,088 31,324 922,415 Loans secured by stocks and bonds other than United States securi- i ties: I J J a a n n . . 2 3 3 0 i j 2 1 0 9 1 8 , , 7 0 5 4 5 0 1 1 , , 4 5 7 05 5 , , 9 3 9 5 2 0 2 2 0 0 5 2 , , 6 1 0 1 3 5 3 3 4 4 7 3 , , 6 1 4 6 1 1 1 1 1 0 0 7 , , 6 6 4 6 9 5 5 59 9 , , 3 4 3 2 4 4 4 4 8 9 1 9 , , 6 3 3 0 9 6 1 ! 1 1 5 6 9 0 , , 9 1 2 0 1 2 i \ 29 2 , 9 9 , 2 6 1 107 7 5 5 , , 4 2 5 1 4 7 3 3 4 3 , , 0 9 7 7 5 2 1 1 4 4 0 1 , . 8 2 8 2 5 0 3 3 , , 3 3 5 2 2 5 , , 8 2 2 2 9 2 Feb.G 201,956 1,437,478 207,048 344,347 107,302 63,172 499,951 1160,024 i 29,334 76,122 34,139 141,106 3,301,979 Feb. 13 i 196,263 1,377,313 206,222 345,771 106,505 59,700 498,593 1160,838 ! 28,40476,246 34,846 141,697 3,232,398 All other loans and in- i vestments: ! Jan. 23 683,057 3,367,708 512,977 814,233 350,545 363,057 1,411,7221322,1431254,671 469,170 222,590 832,178 9,604,051 Jan. 30 669,094 3,419,985 518,787 818,520 350,510 372,940 1,413,467 331,525 252,112 471,878 223,699 828,487 9,671,004 Feb. 6 685,974 3,403,952 526,705 823,363 350,308 362,176 1,440,168 329,370 256,820 472,891 227,058 836,963 9,715,748 Feb. 13 669,812 3,425.604 538,424 833,376 349,736 366,021 1,462,460 330,824 256,783 478,249 229,337 836,319 9,776,945 Total loans and investments: I Jan. 23 ,008,533 6,078,745 912,879 1,433,495 596,756 530,642 2,231,568 571,489 335,660 627,463 335,312 1,171,33515,833,877 Jan. 30 982,223 6,062,701 909,306 1,432,136 590,430 537,917 2,250,022 581,255 333,303 626,094 336,902 1,166,19415,808,483 Feb.6 995,953 5,996,992 916,529 1,433,699 585,748 530,761 2,264,509 576,785 336,341 622,402 341,968 1,165,40715,767,094 Feb. 13 973,254 5,926,617 924,283 1,445,223 582,170 525,077 2,284,679 576,432 333,691 626,922 342,801 1,162,01415,703,463 Reserve balances with Federal Reserve Bank: Jan. 23 79,010 668,284 70,439 93,108 I 38.076 35,135 202,590 48,516 23,763 56,834 29,674 79,361 1,424,790 Jan. 30 79,066 673,982 62,062 93,475 i 36,919 35,399 199,124 43,198 23,338 47,440 35,643 76,850 1,406,496 Feb. 6 76,002 679,469 65,659 89,711 39,205 35,475 204,055 44,400 I 23,853 55,373 27,023 76,934 1,417,159 Feb. 13 81.279 665,422 59,838 90,228 j 39,727 35,938 199,469 48,060 j 23,025 49,324 27,206 78,855 1,398,371 Cash in vault: Jan. 23 23,176 125,940 15,929 | 33,380 17,623 13,867 66,797 10,660 j 9,17115,248 10,649 30,371 372,811 Jan. 30 19,262 ! 120,505 15,644 31,148 16,349 13,083 66,703 10,087 j 8,859 15,480 11,423 28,966 i 357,509 Feb. 6 20,395 | 112,188 15,358 | 31,824 16,873 12,884 65,905 10,242 i 8,092 15,419 9,966 28,072 I 347,218 Feb. 13 25,152 | 129,046 17,916 ! 32,516 17,065 13,105 70,521 11,021 I 8,61615,284 11,747 31,290 383,279 Net demand deposits on which reserve is computed: J J F F a a e e n n b b . . . . 3 2 1 6 0 3 3 7 7 7 7 9 8 8 9 9 6 9 5 , , , , 9 6 5 0 4 7 7 6 1 4 7 0 5 5 5 5 , , , , 1 1 1 1 2 1 1 1 3 8 2 0 , , , , 2 6 6 8 1 0 8 3 7 6 6 2 6 6 6 6 5 6 6 5 9 4 5 4 , , , , 3 6 2 2 9 0 7 8 2 4 2 6 ; ! | i 8 8 8 8 5 5 5 6 5 0 8 4 , , , , 1 7 0 3 3 5 6 9 5 8 8 8 ! 1 3 3 3 3 6 6 6 6 2 5 5 7 , , , , 0 6 0 8 0 4 7 5 1 3 8 9 3 3 3 3 1 1 1 2 1 3 2 0 , , , , 6 0 2 2 2 8 4 2 4 7 8 8 1 1 11 1 ,, , , , 4 ,4 4 4 4 5 4 5 7 3 1 6 1 2 2 , , , , 4 7 4 1 1 5 5 5 7 8 7 6 7 6 7 ' 3 3 3 3 3 86 7 6 7 6 ,8 5 3 55 8, , , , 5 5 5 4 8 5 9 6 7 5 97 6 7 0 7 1 31 1 ' 22 2 2 2 5 3 3 3 3 3 , 4 3 4 75 9 , , 1 6 , , 6 1 9 70 33 7 0 1 22 1 4 0 4 4 4 4 6 7 6 6 4 2 9 9 , , , , 8 8 1 7 1 2 1 4 1 1 9 5 2 2 2 2 5 5 5 5 4 5 0 5 , , , , 0 0 6 1 8 3 8 7 7 7 8 7 6 6 6 6 2 3 1 2 2 4 4 4 , , , , 2 1 8 7 9 8 1 8 1 1 6 7 1 1 1 1 1 1 1 1 , , , , 5 4 4 5 3 7 7 5 7 7 1 7 , , , , 0 8 0 3 5 3 7 5 2 5 7 3 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MARCH, 1920. FEDERAL RESERVE BULLETIN. 321 Principal resource and liability items 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 Jan. 2S to Feb. lo, 1920—Contd. 1. ALL REPORTING MEMBER BANKS—Continued. [In thousands of dollars.] Boston. Y N o e r w k, d P e h lp il h a i - a C la le n v d e . - m R o ic n h d - . la A n t t - a. Mil c F S i r s a a c n n o - . Total. Time deposits: Jan. 23 131,938 409,085 26,043 335,671 99,671 125,581 574,716 116,313 60,9,56 89,137 40,954 467,489 2,477,554 Jan. 30 132,505 392,078 26,034 337,095 99,974 126,382 578,577 :117; 768 61,354 88,481 41,925 469.396 2,471,569 Feb. 6 133,595 395,310 25,720 343,195 98,514 (129,733 583,957 118,458 62,091 91,564 42,086 470', 689 2,494,912 Feb. 13 133,275 384,902 26,070 354,884 99,382 1130,434 585,611 Ills, 705 62,034 92,763 42,878 469,924 2,500,862 Government deposits: Jan. 23 30,448 173,055 i 28,393 23,569 6,450 i 7,661 41,233 10,450 4,727 3,248 2,444 12,032 343,710 Jan. 30 27,757 155,787 I 25,550 21,126 5,776 7,096 37.095 9,360 4,255 , 2,709 2,239 10,073 308,823 Feb. 6 12,099 99,266 i 9,485 19,756 3,464 i 6,324 25.484 5,456 1,155 3,552 5,490 13,637 205,168 Feb. 13 7,882 72,482 5,899 15,329 3,314 i 3,817 24^356 ; 3.880 587 i 3,056 4.790 11,422 156,814 Bills payable with Federal Reserve Bank: Secured by United States war obligations- Jan. 23 24,263 365,255 67, 601 66,566 47, 408 103,620 20.930 13,211 25,386 23,077 32,046 845,092 Jan. 30 34,372 433,238 70,678 59,424 42,370 44,991 102,234 30', 282 13,246 20,455 25,088 34,919 911,297 Feb. 6 40,541 428,815 79,615 66,479 43,864 43,409 112,589 31.705 15,487 19,481 23,680 38,397 944,032 Feb. 13 31,797 440, 912 85,246 75,085 39,871 41,918 121,141 31, 451 15.166 17,040 22,570 39,788 961,985 All other- Jan. 23... 300 160 3,706 02 100 4,328 Jan. 30 150 750 125 150 3,950 300 100 5,525 Feb.6 150 730 125 100 4,509 S5 5,699 Feb. 13... 500 125 150 2,675 85 3,535 Bills rediscounted with Federal Reserve Bank: Secured by United States war obligations- Jan. 23 51,515 115,407 80,304 10,099 9,714 2,718 6,373 7,242 6,506 2,669 1,870 294,4*30 Jan. 30 49,746 116,886 77,921 8,934 8,925 3,137 6,791 6,304 2,610 2,917 1,825 286,069 Feb.6 48,473 115,648 76,028 7,597 7,759 3,522 7,373 8,077 2,870 3,063 1,479 281, 936 Feb. 13 47,567 111,951 76,738 8,226 7,170 3,506 10,020 8,507 '2, £34 2,825 1,322 280,506 All other- Jan. 23 36,191 269,234 36,427 36,244 16,278 15,091 113,412 40,544 37,845 43,721 0,847 28,355 080,189 Jan. 30 42,983 208,596 32,623 37,174 16,701 21,564 116,064 38,705 37; 081 41,331 0,154 32,313 631,289 Feb.6 46,375 207,688 39,304 40,514 18,639 22,325 122,498 42,149 39,922 42,728 5 868 35,038 663.048 Fob. 13 76,167 243,690 43,191 38,035 19,160 23,036 131,813 40,710 37,259 41,841 5,472 ! :5O,514 2. MEMBER BANKS IN FEDERAL RESERVE BANK CITIES. Number of reporting banks: Jan. 23 20 6 270 Jan.30 20 6 270 Feb. 6 20 6 270 Feb. 13 20 6 276 United States bonds to secure circulation: Jan. 23 3,081 39,190 7,087 3,631 2,832 3,100 1,439 j10,548 2,791 4,850 4,560 •18,500 101, 609 Jan.30 3,081 39,190 7,087 3,631 2,832 3,100 1,438 I10,548 2,791 4.850 4,560 18,500 101,608 Feb.6 3,031 39,190 7,087 3,631 2,832 3,100 1,438 I10,547 2,791 4; 850 4,560 18,500 101,557 Feb. 13 3,031 38,940 7,087 3,631 2,832 3,100 1,438 ' 10,547 2,791 4,813 4,560 18,500 101,270 Other United States bonds, including Liberty bonds: Jan. 23 6,061 224,106 22,180 8,378 5,595 1,445 25.286 5,396 1,782 10,299 3,198 37,204 350,930 Jan.30 6,006 217,023 20,562 8,387 5,041 1,518 25; 456 5,603 1,841 7,507 3,365 36,975 339,284 Feb.6 , 5,968 211,.549 20,450 8,345 4,914 1,526 24,767 5,489 1,840 7,586 3,354 37,084 332,872 Feb. 13 , 6,218 208,731 20,143 8,403 4,960 1,548 24,945 5,243 1.698 7,449 3,279 36,874 329,491 United States Victory notes: Jan. 23 965 75,298 8,901 4,606 493 558 18,311 1,532 235 4,043 1,023 4,736 I 120,701 Jan. 30 928 71,611 8,623 4,583 463 553 16,352 1.584 235 3,649 902 4,772 • 114,255 Feb.6 72,075 8,664 4,317 303 550 15,772 1J493 228 2,961 948 4,108 112,299 Feb. 13 870 72, 823 8,363 4,363 328 547 15,361 1.305 229 2, 82S 1,143 4,485 112,645 United States certificates of indebtedness: Jan. 23 26,918 280,142 52,114 2,024 9,636 49,055 19,227 6,991 4,215 I 19,057 i 26,403 504,620 Jan. 30 26,053 273,503 49,556 10,616 1,982 9,443 48,264 18,728 6,971 4,223 j 18,950 1 24,972 493,261 Feb.6 20,426 290,494 48,238 10, 988 2,089 7,790 41,475 18,245 6,787 2,683 18,689 21,435 489,339 Feb. 13 20,025 274,921 46,572 11,518 2,079 5,158 38,705 16,857 6,624 2,680 I 17,711 20,165 463,015 Total United States securities owned: Jan. 23 37,025 618,736 90,282 25,453 10,944 14,739 94,091 36,703 11,799 23,407 27,838 80,843 ! 1,077,8(50 Jan. 30 36,068 601,327 85,828 27,217 10,318 14,614 91,510 36,463 11,838 20,229 j 27,777 85.219 I 1,048,408 Feb.6 30,305 613,308 84,439 27,281 10,138 12,966 83,452 35,774 11,646 18,080 ! 27,551 j 81i127 I 1,036,067 Feb. 13 30,144 595,415 82,165 27,915 10,199 10,353 80,449 33.952 11,342 17,770 i 20,093 1 80,024 ! 1,006,421 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

322 FEDERAL RESERVE BULLETIN. MARCH, 1920. Principal resource and liability items of member banks in leading cities, including member banlcs located in Federal Reserve Bank cities and in Federal Reserve branch cities, as at close of business on Fridays from Jan. 28 to Feb. 13, 1920—Contd. 2. MEMBER BANKS IN FEDERAL RESERVE BANK CITIES—Continued. [In thousands of dollars.] Boston. Y N o ew rk. d P el h p i h la ia - . C la le n v d e . - m R o ic n h d - . la A n t t - a. Chicago. Lo S u t. is. M ap i o n l n is e . - K C a i n ty s . as Dallas. F c S i r s a a c n n o - . Total. Loans secured by United States bonds, Victory notes, and certificates: Jan.23 33,459 489,099 81,254 22,220 11,784 5,959 67,836 22,129 8,027 6,830 1,651 16,688 766,936 Jan. 30 28,352 470,308 80,015 22,006 11,577 5,638 66,728 22,857 8,193 6,844 2,242 16,700 741,460 Feb. 6 28,288 448,714 76,549 21,372 11,364 5,147 67,545 21,330 7,934 6,919 1,849 16,658 713,669 Feb. 13 29,195 435,582 75,938 21,549 10,766 5,046 66,886 21,108 7,815 1,827 15,843 698,246 Loans secured by stocks and bonds, other than United States securities: J J a a n n . . 2 3 3 0 1 1 5 5 5 3 , , 3 8 1 3 6 0 , ,3 3 2 4 1 8 , , 3 1 7 0 8 2 1 1 8 8 6 2 , , 3 7 3 5 1 7 1 1 2 2 5 0 , , 6 6 8 7 6 1 1 1 4 4 , , 8 8 4 9 1 6 u 7 , ,0 CW 3 J 4 O 3 3 8 8 1 6, , 7 0 7 2 7 1 1 i2 2 5 4 , , 0 2 3 3 1 4 1 1 4 4 , , 1 1 4 2 0 1 3 3 3 2 , , 1 9 1 3 4 5 1 1 0 0 , , 4 6 6 0 4 5 6 6 5 4 , , 5 9 6 1 1 0 2 2 , , 4 4 3 66 4 , , 4 1 7 4 5 8 Feb. 6 155,661 ,281,081 187,579 123,515 15,039 7,077 386,731 124,349 14,345 33,125 10,570 64,649 2,403,721 Feb. 13 150,454 1,223,737 186,591 124,129 15,265 7,151 385,112 125,134 13,700 33,221 11,490 65,058 2,341,042 AH other loans and investments: Jan. 23 473,925 2,998,489 446,897 229,994 66,656 55,817 817,430 198,920 113,394 161,076 58,588 386,851 6,008,037 Jan. 30 457,290 3,050,837 452,438 233,805 65,887 56,657 823,266 206,884 111,426 161,817 58,407 381,201 6,059,915 Feb. 6 476,228 3,034,370 459,638 234,567 64,783 58,891 835,785 205,859 111,622 159,179 59,417 389,870 6,090,209 Feb. 13 458,989 3,054,484 470,533 231,710 66,439 58,640 850,880 205,466 112,926 163,963 57,792 387,502 6,119,324 Total loans and investments: Jan. 23 699,725 :,454,426 804,764 403,353 104,225 83,383 1,360,378 382,783 147,360 224,427 98,541 555,943 10,319,308 Jan. 30 675,540 5,443,850 801,038 403,699 102,678 83,943 1,368,281 390,438 145,578 221,825 99,031 548,030 L0,283,931 Feb. 6 690,482 5,377,473 808,205 406,735 101,324 84,081 1,373,513 387,312 145,547 217,303 99,387 552,304 L0,243,666 Feb. 13 668,782 5,309,218 815,227 405,303 102,669 81,190 1,383,327 385,660 145,783 221,645 97,802 548,427 10,165,033 Reserve balances with Federal Reserve Bank: Jan. 23 62,970 628,730 63,995 26,346 6,885 6,108 143,932 34,653 11,674 21,482 9,796 35,021 1,051,592 Jan. 30 64,065 633,935 55,704 27,971 5,942 5,372 138,949 30,331 11,427 11,770 7,125 32,809 1,025,400 Feb. 6 61,061 639,901 58,866 23,903 6,603 5,771 145,557 31,915 12,144 18,823 7,290 32,896 1,044,730 Feb. 13 64,590 626,485 52,779 25,044 8,038 6,542 138,845 35,258 10,871 15,355 7,202 35,652 1,026,661 Cash in vault: Jan. 23 14,111 113,097 12,429 8,385 2,094 2,516 38,210 5,792 2,930 4,051 1,976 10,557 216,148 Jan. 30 10,841 107,881 12,315 8,039 1,797 2,114 37,828 5,355 2,848 4,363 1,999 10,305 205,685 Feb. 6 14,213 110,235 11,866 7,961 1,929 2,167 37,510 5,176 2,495 4,190 1,907 9,827 209,476 Feb. 13 15,750 115,177 14,282 8,549 1,786 1,972 38,097 5,493 2,860 4,031 2,295 9,874 220,166 Net demand deposits on which reserve is com- I puted: Jan. 23 610,634 4,660,903 576,908 218,872 63,563 50,479 986,319 256,632 106,934 167,776 77,658 287,462 8,064,140 Jan. 30.... 601,635 4,665,394 566,919 217,288 62,925 50,017 987,676 254,243 103,353 163,559 74,685 277,028 8,024,722 Feb. 6 602,631 4,663,058 571,390 214,436 62,879 51,557 986,529 250,144 105,214 164,079 74,491 272,162 8,018,570 Feb. 13 609,190 4,647,471 576,235 219,198 62,751 51,329 985,018 257,468 102,791 165,261 73,111 272,474 8,022,297 Time deposits: Jan. 23 42,735 319,187 16,492 163,203 20,512 19,781 262,372 70,732 22,187 12,094 3,842 209,146 1,162,283 Jan. 30 43,496 301,906 16,365 163,662 20,429 19,764 264,453 71,290 22,419 12,057 3,885 209,727 1,149,453 Feb. 6 42,872 304,811 16,486 167,792 20,422 20,080 266,952 71,761 22,435 11,759 3,903 210,411 1,159.684 Feb. 13 42,058 298,216 16,795 167,398 20,669 20,095 267,156 71,855 22,381 12,719 3,922 210,101 1,153,365 Government deposits: Jan. 23 25,693 166,825 26,710 5,467 1,316 731 22,210 8,410 2,310 2,194 1,095 7,691 270,652 Jan. 30 23,473 150,180 24,035 5,059 1 177 659 19,989 7,557 2,078 1,741 986 6,888 243,822 Feb. 6 9,985 96,830 7,982 3,811 969 749 12,692 4,492 535 2,294 2,454 10,924 153,717 Feb. 13 6,439 70, &31 4,707 2,690 1,606 601 12,121 3,210 266 1,973 2,191 9,027 115,662 Bills payable with Federal Reserve Bank: Secured by United 8tates war obligations- Jan. 23 20,129 329,243 63,418 10,925 6,169 4,374 46,293 20,592 5,205 12,583 16,367 17,621 552,91\> Jan. 30 30,048 394,164 66,075 13,405 5,409 3,227 46,617 23,519 5,270 9,288 16,567 20,325 633,914 Feb. 6.... 35,189 389,302 75,301 12,700 5,965 3,352 53,450 24,931 5,901 7,703 16,000 21,751 651,545 Feb. 13 26,055 401,394 79,050 19,898 5,950 1,687 56,154 24,496 6,226 7,230 16,000 23,717 667,857 All other- Jan. 23 285 285 Jan. 30 285 285 Feb. 6 500 500 Feb. 13 500 500 Bill! rediscounted with Federal Reserve Bank: Secured by United States war obligations- Jan. 23 45,149 111,229 79,959 5,643 2,547 485 2,560 4,061 6,131 43 259,684 Jan. 30 43,523 112,162 77,576 5,208 2,317 678 3,191 3,349 2,245 922 43 807 252,021 Feb. 6 42,395 110,131 75,364 4.517 2,133 426 3,615 5,452 2,525 1,147 32 530 248,267 Feb. 13 42,171 106,911 76,074 4,449 1,983 404 6,085 5,595 2,309 1,045 26 449 247,501 All other- Jan. 23 33,918 258,925 35,398 26,265 2,373 2,137 91,863 27,415 30,165 19,401 811 18,692 547,363 Jan. 30 41,164 198,247 32,038 26,542 2,797 2,678 94,788 26,035 29,803 19,360 825 21,555 495,832 Feb.6 44,923 198,313 38,388 27,152 3,371 2,594 101,563 29,788 30,015 20,655 673 23,471 520,906 Feb. 13 74,763 235,091 42,298 25,246 3,309 2,461 109,480 29,038 27,534 19,020 638 24,692 593,570 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MARCH, 1920. FEDERAL RESERVE BULLETIN. 323 Principal resource and liability items 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 Jan. 23 to Feb. 13,1920—Contd. 3. MEMBER BANKS IN FEDERAL RESERVE BRANCH CITIES. [In thousands of dollars.] di Y N s o t e r r w i k ct; d C i l s a l t e n r v i d e c - t. 2 d m R is o i t c r n h i d c - ts d A is tl t a ri n c t t a .* d C i h s i t c r a i g c o ts S d t i . s t L ri o c u t i . s " d K i C s a t n i r t i s y c a t s .? d D is a tr l i l c a t s .* F d r i a s S n t a c ri i n c sc t. o 9 Total. Number of reporting banks: Jan. 23 40 19 24 12 18 18 11 42 193 Jan. 30 40 19 24 12 18 18 11 42 193 Feb. 6 40 19 24 12 18 18 11 42 193 Feb. 13 40 19 24 12 18 18 11 42 193 United States bonds to secure circulation: Jan. 23 24,897 5,608 6,915 1*905 5,280 4,187 7,108 13,305 70,804 Jan. 30 24,897 5,608 6,915 1,905 5,280 4,187 7,108 13,305 70,804 Feb.6 24,897 5,608 6,915 1,905 5,280 4,187 7,108 13,305 70,804 Feb. 13 24,897 5,608 6,915 1,905 5,280 4,187 7,108 13,305 70,804 Other United States bonds, including Liberty bonds: Jan. 23 7,736 41,334 9,084 23,271 15,672 8,077 6,070 7,553 21,146 139,943 Jan. 30 7,779 41,564 8,960 20,438 15,708 8,211 5,947 7,627 21,804 138,038 Feb. 6 7,765 41,175 8,963 23,944 15,784 8,105 5,923 7,621 22,464 141,744 Feb. 13 8,002 42,383 9,022 23,573 15,805 8,091 6,136 7,630 22,179 142,821 United States Victory notes: Jan. 23 3,315 15,571 3,605 5,366 14,588 2,876 644 1,364 7,998 55,327 Jan. 30 : 3,164 15,615 3,546 7,155 14,567 2,772 671 1,374 7,813 56,677 Feb.6 3,107 15,520 3,478 5,494 14,532 2,670 653 1,461 7,799 54,714 Feb. 13 2,715 15,099 3,422 5,204 14,502 2,720 494 1,442 7,726 53,324 United States certificates of indebtedness: Jan. 23 7,857 38,911 11,350 19,738 54,662 3,314 5,012 5,396 27,831 174,071 Jan. 30 7,664 37,571 10,719 19,399 54,827 3,109 5,227 5,499 27,593 171,608 Feb.6 6,045 34,362 8,342 18,933 49,964 3,022 3,736 6,403 22,187 152,994 Feb. 13 5,920 33,999 7,099 17,177 52,642 2,789 3,378 5,853 20,423 149,280 Total United States securities owned: Jan. 23 20,507 120,713 29,647 55,290 86,827 19,547 15,913 21,421 70,280 440,145 Jan. 30 20,206 119,647 28,833 53,907 87,007 19,372 16,032 21,608 70,515 437,127 Feb.6 18,516 115,954 26,391 55,286 82,185 19,077 14,499 22,593 65,755 420,256 Feb. 13 18,236 116,378 25,151 52,869 84,854 18,880 14,195 22,033 63,633 416,229 Loans secured by United States bonds, Victory notes, and certificates: Jan. 23 6,746 53,492 9,922 12,260 12,836 7,368 9,705 1,745 14,457 128,531 Jan. 30 6,726 51,751 9,301 12,082 12,793 7,542 8,776 1,889 13,942 124,802 Feb.6 6,788 51,618 9,024 11,948 12,606 7,605 8,593 1,861 13,931 123,974 Feb. 13 6,571 51,459 9,230 11,854 13,785 7,240 1,858 14,616 125,301 Loans secured by stocks and bonds, other than United States securities: Jan. 23 40,589 161,743 33,828 40,100 53,336 32,255 21,646 14,979 69,547 468,023 Jan. 30 40,838 161,121 33,501 39,834 56,390 32,861 21,349 14,819 70,506 471,219 Feb.6 45,522 159,964 32,689 42,423 57,736 32,860 21,918 14,575 70,579 478,266 Feb. 13 45,558 159,786 32,579 38,965 57,405 32,950 21,941 14,727 71,146 475,057 All other loans and investments: Jan. 23 127,084 428,109 102,029 225,574 289,490 107,157 150,205 66,661 415,311 1,911,620 Jan. 30 125,638 427,809 104,369 233,835 293,885 109,036 151,630 68,748 417,206 1,932,156 Feb.6 123,969 431,616 102,583 223,972 299,851 107,694 153,364 68,923 415,873 1,927,845 Feb. 13 122,945 444,489 103,333 227,217 302,763 109,330 154,416 71,705 416,796 1,952,994 Total loans and investments: Jan. 23 194,926 764,057 175,426 333,224 442,489 166,327 197,469 104,806 569,595 2,948,319 Jan. 30 193,408 760,328 176,004 339,658 450,075 168,811 197,787 107,064 572,169 2,965,304 Teb.6 194,795 759,152 170,687 333,629 452,378 167,236 198,374 107,952 566,138 2,950,341 Feb. 13 193,310 772,112 170,293 330,905 458,807 168,400 199,240 110,323 566,191 2,969,581 Reserve balances with Federal Reserve Banks: Jan. 23 11,216 49,801 12,193 22,922 29,057 13,030 16,942 7,992 40,828 203,981 Jan. 30 11,763 48,807 12,283 23,094 29,307 11,803 17,355 8,452 40,783 203,647 Feb.6 12,975 48,709 13,273 22,695 28,754 11,725 16,819 8,575 40,579 204,104 Feb. 13 12,205 47,733 12,732 21,971 29,312 11,867 15,192 8,303 39,540 198,855 Cash in vault: Jan. 23 2,701 15,078 4,957 7,577 14,360 4,079 5,360 2,783 17,872 74,767 Jan. 30 2,575 13,996 4,907 7,331 14,052 4,003 5,240 3,099 16,834 72,037 Feb.6 2,723 14,590 4,314 7,149 13,800 4,260 5,379 2,694 16,435 71,344 Feb. 13 3,034 14,307 4,802 7,120 16,416 4,817 5,320 3,224 19,105 78,145 Net demand deposits on which reserve is computed: Jan. 23 127,198 465,642 111,056 209,792 204,623 106,541 134,894 72,139 316,456 1,748,341 Jan. 30 126,715 465,070 110,409 204,446 212,281 103,844 133,583 71,756 315,172 1,743,276 Feb.6 127,194 461,807 109,701 205,022 211,391 104,643 139,057 72,296 312,240 1,743,351 Feb. 13 129,983 463,103 112,060 202,558 226,053 106,837 139,185 73,519 319,007 1,772,305 Time deposits: Jan. 23 35,066 100,652 19,799 69,367 201,894 36,962 45,100 19,226 246,665 774,731 Jan. 30 35,137 101,152 19,473 69,850 203,655 37,811 44,925 20,064 247,117 779,184 Feb.6 35,095 102,540 17,353 72,344 205,848 38,054 46,501 20,018 247,611 785,364 Feb. 13 34,234 113,392 17,958 72,790 207,010 38,251 46,320 20,613 247,416 797,984 Government deposits: Jan. 23 2,494 15,093 477 6,119 I 12,101 1,998 667 577 3,433 42,959 Jan. 30..... 2,244 13,523 418 5,707 ! 10,891 1,765 601 558 3,088 38,795 Feb.6 822 14,254 148 5,433 i 7,654 960 278 2,226 1,690 33,465 Feb. 13.. > 490 i 11,452 111 3,167 I 7,382 670 204 1,902 1,485 26,863 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

324 FEDERAL RESERVE BULLETIN. MARCH, 1920. Principal resource and liability items 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 Jan. 23 to Feb. 13, 1920—Contd. 3. MEMBER BANKS IN FEDERAL RESERVE BRANCH CITIES—Continued. [In thousands of dollars.] di Y N st o e ri r w c k t.1 d C i l s a l t e n r v i d e c - ts di m R st o i r c i n h c d t - .3 d A is t t l r a i n ct t . a * d C i h st i r c i a c g t. o * S di t s . t L ri o c u t i s s d K is C a tr n i i t s c y a t. s * d D ist a r l i l c a t s .* F d r i a s S n tr a c i n i c s t c .* o Total. Bills payable with Federal Reserve Bank: Secured by United States war obligations- Jan. 23... / 16,046 51,787 21,061 35,548 j 40,595 5,886 8,214 4,660 12,711 196,508 Jan. 30 17,242 42,218 16,348 33,967 | 38,270 6,381 6,838 5,616 12,965 179,845 Feb.6 16,752 48,403 17,441 32,461 i 42,985 6,262 7,704 5,050 15,077 192,135 Feb. 13 16,464 50,186 14,006 32,722 ! 47,867 6.393 6,351 4,615 14,392 192,996 All other- Jan. 23 300 10 i 3,421 62 100 3,893 Jan. 30 300 3,665 300 100 4,365 Feb. 6 280 4,009 85 4,374 Feb. 13 2,175 85 2,260 Bills rediscounted with Federal Reserve Bank: Secured by United States war obligations- Jan. 23 1.711 3,479 5,106 1,717 1,328 2,480 1,017 i 935 17,773 Jan. 30 2,017 2; 887 4,912 1,872 1,317 2,269 1,393 30 978 17,675 Feb. 6 2,873 2,681 4,114 2,405 1,313 1,968 1,245 15 909 17,523 Feb. 13 2,448 2,674 3,304 2,489 1,213 2,331 1,154 14 830 16,457 Ml other- Jan. 23 2,492 5,889 8,084 11,654 7,647 12,295 18,164 5,233 7,837 79,295 Jan. 30 2,016 6,949 8,304 14,305 6,677 11,806 16,223 4,426 8,787 79,493 Feb. 6 1,915 8,749 9,339 15,085 7,926 11,642 16,332 4,325 9,332 84,645 Feb. 13 1,926 8,062 9,748 16,790 7,925 10,892 16,970 3,969 9,803 86,085 1 Buffalo. s Louisville, Memphis, and Little Rock. 2 Pittsburgh and Cincinnati. ' Omaha and Denver. * Baltimore. s El Paso and Houston. 4 New Orleans, Birmingham, Jacksonville, and Nashville. 9 Spokane, Portland, Seattle, Salt Lake City, and Los Angelas. & Detroit. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MARCH, 1920. FEDERAL RESERVE BULLETIN. 325 IMPORTS AND EXPORTS OF GOLD AND SILVER. Gold imports into and exports from the United States, distributed by countries. Imports. Exports. D d i 2 a n u 0 y g r , s i 1 n J 9 e g a 2 n n 0 1 d . . 0 - D d i 3 a n u 1 y g r , s 1 i n J 9 e g a 2 n n 0 1 d . . 1 - D d i 1 n a u 0 g y r , s i 1 n F 9 e g e 2 n 0 b 1 d . . 0 - F 1 1 r o 0 to m , 1 F 9 J 2 e a 0 b n . . . F 1 1 r 0 o to , m 1 9 F J 1 e a 9 b . n . . D d i 2 a n u 0 y g r , s 1 i n J 9 e g a 2 n n 0 1 d . . 0 - D d i 3 a n u 1 y g r , s 1 i n J 9 e a g 2 n n 0 1 d . . 1 - D d i 1 a n u 0 y g r , s 1 i F n 9 e g e 2 n b 0 1 d . . - 0 F 1 1 r o 0 to m ,1 9 F J 2 e a 0 b n . . . F 1 r 1 o 0 to m ,1 9 F J 1 e a 9 b . n . . France $19,576 $19,576 Italy $68,954 $136,598 Netherlands $1,238 1,238 United Kingdom—England . 942 942 $5,000 $2,087 9,155 Total Europe 1,238 20,518 21,756 5,000 2,087 68,954 145,753 Canada 10.467,932 1528,694 99,769 11,298,269 $1,007,161 230,110 215,548 143,519 655,146 $1,486 Costa Eica 3,578 3,578 51,922 Honduras 207 1,925 4,511 46,147 1,000 1 000 Nicaragua 15,207 11,552 24,929 87,902 280,345 Panama 30,000 30,000 Salvador 2,956 53,267 71,020 Mexico. 163,168 86,371 40,108 415,060 647,320 1,026,402 1,695,788 1,284,380 4,632,002 1,405,141 British West Indies 1,608 Cuba 848 1,777 1,323 Dominican Republic 16,000 16,000 Total North and Central America 10,647,362 629,573 200,309 11,894,364 2,106,846 1,272,512 1,912,336 1,427,899 5,304,148 1,406,627 Argentina 5,600,000 7,950,000 11,500,000 25,050,000 Bolivia 227 1,188 1,415 Brazil ioo,666 100,000 Chile 324 10,826 3,857 15,007 4,938 200,000 200,000 Colombia 5,496 52 5,548 218,348 180,000 60,000 200,000 500,000 1,853,000 Ecuador 28,808 British Guiana 18,445 i8,445 40,470 Dutch Guiana 6 500 Peru 7,472 23,605 22,550 i.28,487 126^356 135,339 Uruguay 1 100,000 i - 1,100,000 Venezuela 42,152 50 000 50,000 1,195,670 Total South America.. 31,737 34,658 27,647 168,902 467,572 6,930,000 8,310,000 11,700,000 27,000,000 3,184,009 China 1 1,555,234 1,812,636 9,302,109 British India 654,000 202,000 40,000 1,205,020 Straits Settlements 1,250,000 560,000 305,000 3,615,000 Dutch East Indies 1,110,000 1,110,000 Hongkong 143,600 7,"i82*756' 'i,"485,"3*ii' 11,268,342 Japan 2,000,000 5,706,301 Total Asia 3 157,600 11,499,990 3,642,947 32,206,772 New Zealand 150,614 150,614 j Philippine Islands 30,389 30,389 61,192 ..'. -. Portuguese Africa """"37," 727" 37,727 1 Total, all countries 10,680,337 845,234 286,201 1 12,303,752 2,635,610 11,365,112 21,724,413 16,839,800 2 64,656,673 4,590,636 1 Includes: Ore and base bullion, $1,863,000: bullion refined, $440,000; United States coin, $1,000: foreign coin, $10,000,000. 2 Includes: Domestic exports—United States mint or assay office bars, $9,196,000; bullion refined, $155,000; coin, $55,291,000 Foreign exports- Coin, $15,000. Excess of gold exports over imports since Jan. 1,1920, $52,353,000. Excess of gold imports over exports sinice Aug. 1, 1914, $727,402,000. Excess of gold exports over imports since June 10, 1919, $373,617,000. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

326 FEDERAL RESERVE BULLETIN. Silver imports into and exports from the United States, distributed by countries. Imports. Exports. D d i 2 a n u 0 y g r , s 1 i n J 9 e g a 2 n n 0 1 d . . 0 - D d i 3 a n u 1 y g r , s 1 i n J 9 e g a 2 n n 0 1 d . . 1 - D d i 1 n a u 0 g y r , s i 1 n F 9 e g e 2 n 0 b 1 d . . 0 - F 1 1 r o 0 to m ,1 9 F J 2 e a 0 b n . . . F 1 1 r 0 o to , m 1 9 F J 1 e a 9 b n . . . D d i 2 a n u 0 y g r , s 1 i n J 9 e g a 2 n n 0 1 d . . 0 - D d i 3 a n u 1 y g r , s 1 i n J 9 e g a 2 n n 0 1 d . . 1 - D d i 1 n a u 0 g y r , s i 1 n F 9 e g e 2 n 0 b 1 d . . 0 - F 1 1 r o 0 to m ,1 9 F J 2 e a 0 b n . . . F 1 r 1 o 0 t m o ,1 9 F J 1 a e 9 b n . . . Denmark $66,183 France . . $7,664 $7,664 $3,823 i 1,401,456 Netherlands 8234 234 Norway . . . '..1 255,805 Sweden ! 48,675 United Kingdom—England . 3,655 3 ktt 7,362 $10,000 $42,841 $52,841 4,041,787 Total Europe 234 11,319 11,553 11,185 10,000 42,841 52,841 5,813,906 British Honduras 225 $7,545 7,770 16,698 Canada 128,862 205,198 263,316 710,635 553,055 $1,960,701 268,589 91,430 2,362,756 356,655 Costa Rica 645 645 732 Guatemala ! - 3,480 17,480 Honduras ... 1 489 1,403 344,592 455,047 21,500 32,300 10,000 | 89,800 Nicaragua 3,358 17,761 12,719 85,220 157,501 Panama 16,340 16,340 44,038 50,000 j 400,000 Salvador 28,136 10,025 i89,467 917,697 41,566 Mexico 1,370,237 2,072,758 2,226,456 7,826,614 5,595,612 259,809 211,697 135 317 ' fifift 01» 97,850 British West Indies 1,800 2,100 Cuba 31 5,873 19,613 20,688 9,000 5 000 14 000 Dominican Republic i3 000 43,000 Total North and Central America 1,548,678 2,319,160 2,697,486 9,946,606 6,884,937 2,255,010 521,586 291,747 3r571,269 456,605 Rnlivia. 113,584 7,106 120,690 Chile 16,060 87,404 102,311 209,930 10.797 OnloTnlyjft 15 561 649 20,481 14,408 250 343 137,511 274,570 437,080 1,795,236 1,237,108 201 Total South America.. 169 132 475,558 547,146 2,146,337 1,262,857 250 21,366,456 China ii, 974 11,974 1,075,218 11,691,270 3,978,226 21,421,702 Hongkong,. 1,650 1,650 1,365,523 1,185,902 5,077,502 2,212,424 Total Asia 13,624 13,624 1,075,218 13,056,793 5,164,128 26,499,204 23,578,880 283 283 799 799 976 Rritioh Wa<%t Afrina 3,080 i 3.080 Portuguese Africa 4,785 4,785 j Total all countries 1,718,044 2,809,424 3,260,736 112,123,987, 8,159,955 3,330,228 13,591,459 5,498,716 2 30,126,394 29,849,641 1 Includes: Ore and base bullion, $10,276,000; United States mint or assay office bars, $3,000; bullion refined, $604,000; United States coin, $73,000; °rei»^cludes: 'Domestic exports—United States mine or assay office bars, $1,277,000; bullion refined, $17,615,000; coin, $8,201,000; Foreign exports- Bullion refined, $2,810,000; coin, $223,000. Excess of silver exports over imports since Jan. 1,1920, $18,002,000. Excess of silver exports over imports since Aug. 1, 1914, $447,374,000. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MARCH, 1920. FEDERAL RESERVE BULLETIN. 327 Estimated general stock of money, money held by the Treasury and by the Federal Reserve System, and all other money in the United States, Feb. 1, 1920. G U m e n n o i e n t r e e a d y l s S i t n t o a c t t h k e e s o . f U G a T H n o s r s e i v e t e l e e a d t r s d s n u i o n m S r f y t t e a t h n a h t e e s t e . s 1 F H ed B e e l a d a r n g a b k l e y s n R t o s a e . r n s d e fo rv r e F U e T H d n r e e e i S l t r a d y e a s d s l u t o e r R u y S m t e t s . s a a i e d t n e r e d v s o F U c T e A a d r n p e m e i S i a t r t e y o a s a d u s u l o t r n R e S y u t m e t t p a s s a . i e n e t d e r r d v e s e Gold coin (including bullion in Treasury)2 $2,762,905,481 $365,779,472 $1,336,624,859 $421,143,060 Gold certificates 353,330,870 286,027,220 Standard silver dollars 285,"22i,*775' 57,514,086 88,670,337 Silver certificates 5,232,043 132,111,784 Subsidiary silver 232," 784," 726" 5,263,797 3 4,700,960 222,819,969 Treasury notes of 1890 1,693,525 United States notes 346,681,016 25.953,688 * 51,046,187 269,681,141 Federal Reserve notes 3,125,885,275 35,641,195 245,353,675 2,844,890,405 Federal Reserve Bank notes 258,182,800 56,959,135 9,550,341 191,673,324 National-bank notes 733,108,190 78,031,376 3,813,053 651,263,761 Total: Feb. 1,1920 7,744,769,263 625,142,749 2,009,651,988 5,109,974,526 $47.88 Jan. 1,1920 7,961,320,139 604,888,833 2,044,422/303 5,312,009,003 49.81 Oct. 1,1919 7,662,898,238 616,213,318 2,087,709,369 4,958,975,551 46.61 July 1,1919 7,588,473,771 578,848,043 2,167,280,313 4,842,345,415 45.00 Apr. 1,1919 7,586,752,855 550,628,454 2.195,151,766 4,840,972,635 45.17 Jan. 1,1919 7,780,793,606 454,948,160 2.220,705,767 5,105,1^9,679 47.83 July 1,1918 6,742,225,784 356,124,750 2,018,361,825 4,367,739,209 41.31 Jan. 1,1918 6,256,198,271 277,043,358 1,723,570,291 4,255,584,622 40.53 July 1,1917 5,480,009,884 253,671,614 1,280,880,714 3,945,457,556 37.88 1 Includes reserve funds against issues of United States notes and Treasury notes of 1890 and redemption funds held against issues of nationa 2bank notes. Federal Reserve notes, and Federal Reserve Bank notes. a 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. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

328 FEDERAL RESERVE BULLETIN. MARCH, 1020. FEDERAL RESERVE BANK DISCOUNT RATES. Rates on paper discounted for member banks approved by the Federal Reserve Board up to Feb. 28, 1920. Discounted bills ma- Discounted bills seturing within 90 cured otherwise than days (including by Government war member banks' 15- obligations, also unday collateral notes) secured, maturing secured by— Bankers' Trade within— accept- accept- Federal Reserve Bank. ances ances maturing maturing 90 days c o T e f e r r t d e i i n f n a i d s e c u s e a s r b te y . t s - bo L V n n i i o d b c t e t s e o r s a r t . y n y d 3 w m i o th n i t n hs. 9 w 0 i t d h a i y n s. ( c i m n o b 1 c e l a 5 l l m a - n u d t k d b e a s i r e y n a ' r g l d a 9 a c p n y 1 u s a d t s l p o t t u l ( o e c i a r v r k g a ) 1 e . r 8 l - i 0 notes). Boston 5* I New York.... 5i 6 ! Philadelphia.. i 6 Cleveland.... 5J 6 Richmond.... 6 5J Atlanta 6 Chicago 6 St. Louis Minneapolis... 5i I Kansas City... o U 6 I Dallas.....\.. 5 6 ! San Francisco. 4f 6 I NOTE.—Rate on paper secured by War Finance Corporation bonds 1 per cent higher than rate on commercial paper shown in column 5. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MARCH, 1920. FEDERAL EESERVB BULLETIN. 329 CONDITION OF MEMBER BANKS. Abstract of condition reports of State bank and trust company members in each Federal Reserve district on Nov. 17, 1919. [In thousands of dollars.] I District! DistrictDistrict District District District District District District District District District United No. 1 No. 2 No. 3 No. 4 No. 5 No. 6 No. 7 No. 8 No. 9 No. 10 No. 11 No. 12 (ba ( n 3 k 6 s).; ba ( n 11 k 7 s). ba ( n 3 k 8 s). ba ( n 9 k 3 s). ba ( n 4 k 4 s). ba ( n 6 k 3 s). ba (3 n 2 k 1 s). ba ( n 6 k 6 s). ba ( n 8 k 2 s). ba ( n 4 k 2 s). ba (1 n 1 k 3 s). ba ( n 1 k 20 s ).j ! S (1 t , a 1 t 3 e 5 s banks). -, RESOURCES. Loans and discounts j 406,9782,141,756 166,232 399,651 99.556 196,236 949,315 216,823! 67.5311 64,691 50,221 287,950|5,046,940 Overdrafts 138 590 103 397 181 1,433 571 563i ' 200! 214 476 9611 5,827 Customers' liability under letters of credit %5| - 40 157 31 1,193 Customers' liability account of acceptances 15,452 125,702! 757 7 ^71 1,007 10, 883 23,862 9,1481. 1 1,712 196,090 Liberty bonds (exclusive of Liberty bonds borrowed) 14,240 !')(>, 46()| 14,786 24,6421 5,223 11,948 51,658 11,456! 2,8311 5.564 3,953 27,039i 329,800 Other United States bonds (exclusive of United States bonds borrowed) 246: 1281 15 294 24 123 1,322 103 263 5 3,392; 5,954 United States Victory notes 7,336; 56,076| 5,492 13,648 3,144 5,898 44,147 4,856 644 1.724 7,255] 150,909 United States certificates of indebtedness 16,855; 130,508 9,741 30,330 1,285 9,376 60,733 9,492 2.957' l,606| 3,411 16,923] 293,217 War savings and thrift stamps actually owned 96 i 158 23 93 23 60 342 37! 160 80 105; 1,254 Stock of Federal Reserve Bank... 1,8871 9,115 2,045! 2,907 525 1,081 4,588 1,322J 281| 235! 291 1,107! 25,384 Other bonds, stocks, etc. (exclu- i sive of securities borrowed) 98,832| 515,841! 104,267 163,088 13,245 24, 223,024 43,580 7,312! 9,461 766 65,447|1,268,888 Banking house 9,209 52,117; 7,382; 15,656 2,294 7,416 17,406 6,650| 1,033! ' 700| 1,139 8,152 129,154 Furniture and fixtures 801 1' ,0"2"4' ! '461 1,277 178 968 2,613 86O! 350: 2081 460 1,424 10,624 Other real estate owned 250 8,322 2,518! 4,807 629 2,656 1.681 958| 257J 193; 209 2,579: 25,119 Lawful reserve with Federal lie- , serve Bank j 37,092| 302,346 19,833 32,656 6,165 16,665 91,048 20,503! 4,284 4,499| 4,683 23,039j 562,813 Items with Federal Reserve Bank i in process of collection ! 16,190 52,940 3,528 6,780 1,634 6,181 15,072 11,7561 742! 2.283; 839 3,065! 121,010 Due from banks and bankers | 32.305 252,223 11,360 32,063 17,920 46,679 105,801 35,260J 9,570,1 if, 5551 16,069 39,234) 610,039 Gold coin and certificates ! 1,675 8,823 473 222 141 679 3,818 295| 2' 163! 95 1,343! 18,002 All other cash in vault 14,430 44,444 5,498 5,468! l,350| 1,3511 135,679 E xchanges f orclearing house, also 11,992 3,179 5,990 33,147 1,883 6,947| checks on banks in same place.. 15,305 286,0011 2,818 7,432j S10 374,116 Outside checks and other cash \ 6,020 1,049 12,740 32,676 764 5,853; items 1,423 20,107 329 3,266j 640 442 56,561 Approximate interest earned but 3,535 398 4,421 14,904 ! 653 6,443; not collected 584 12,687 636 283 381 2,093 806 i 198 85 1,911! 20,635 Other assets 996 25,473 1,021 948 763 992 1,324 594' 36 122 23 1,3051 35,105 2,026 453 Total. 692,320 4,203,806 359,318 760,659 158,886 366,8311,681,302 391,268! 101,601) 107,,909| 87,196 513,217|9,424,313 LIABILITIES. Capital stock paid in 30,475 138,4731 23,225 35,188 10,993 21,191 82,868 24,300i 7, 7831 .">, 410J 7,183 25. 780i 412,869 S U u n a r n d p d i l v u t i s a d f x e u d e n s d p p r a o i f d its, less expenses 3 1 3 1 , , 7 4 5 8 8 8 1 5 6 3 8 , , 3 10 4 1 1 | 4 1 7 0 , ,0 1 7 0 6 3 6 14 2 , , 9 1 1 4 " 2 3 7 , ,0 3 9 3 4 3 13,338 2 7 1 0 , , 0 96 8 9 9 19 5 , , 7 5 8 6 f 1 ij | 2 1 . , 3 4 0 0 4 6 1 2' 524 j j 2 1 , ,2 5 4 9 3 6 11^ 549: i 4 1 4 3 1 5 , , 2 4 6 5 4 8 Ap co p u ro n x t i c m ol a l t e e c t i e n d t b er u e t s n t ot a e n a d r n d e i d s- .. 1,517 6,8621 79 609 340 4,134 1,943 98l| 10' I.309! 7,561! 13,660 A c m r o ue u d nt reserved for taxes ac- 1,427 10,266} 80' 1,199 123 572 3,658 234J 120 21 7 2 4 47 396; 18,694 Amount reserved for interest 342 accrued 1,106 11,617 451 880 403 3,205 463 114 203 28 397; 20,865 C D D e u u r e e t i t f t o o ie d b F a e a n d n k e d s r a c a l a n R s d h e i b s e e a r r n s v ' k o e e r B r t s r a e n a k sur- 19, 9 9 8 0 7 6 391,8 1 0 8 8 1 7,796 18,33 3 2 1 17,93 2 7 4 61,4 9 1 4 5 4 7 3 5 88,5 7 8 7 8 1 53,435 12,631 16,740 7,2 1 0 9 9 l,43o 9 ! 72 2 2 , , 1 6 6 1 7 8 ers' checks outstanding. 13,916 223,358 9y»8*4 05,,11607/ 1,8 3,635 14,111 3,300 1,380 1,910 1,007 26,787 276,343 D Ti e m m e a n de d p d o e s p it o s sits 4 1 3 0 4 3 , , 9 6 8 5 5 7 2,3 3 9 5 3 7 ' , , 6 7 8" 8 5 61 3 9 6 7 , , 7 1 4 3 1 0 1 2 3 5 0 9 0 , , 5 9 6 1 7 3 6 4 4 0 , , 5 3 7 3 7 8 1 6 5 9 3 , , 4 2 0 3 7 5 6 6 4 6 0 6 , , 7 7 1 1 4 7 15 8 2 8 , , 7 0 7 7 0 5 ; ( 3 4 1 0 , , 1 81 8 0 2 5 2 1 3 , , 5 7 7 3 7 3 57 5 , , 5 6 1 5 5 7 1 2 5 65 5 2, , , 2 66 3 78 2 28 4 1 , , 5 9 9 9 2 6, , 4 2 0 7 5 0 United States deposits 9,637 61,771 7,0811 11,093 17,750 33,663399 338800 1.143 484 1,495 117,977 Bills payable with Federal Re- 1,367 2,137 I Bi s l e ls rv e p a B y a a n b k le other than with 12,270 209,103 25,348! 40,238 8,791 20,186 41,184 19,605: 2,298 2,882 3,386 10,126J 395,417 Federal Reserve Bank 4S6 451 750J 1,193 1,694 4,568! 1,032 129 771 887! 15,504 Cash letters, of credit and travel- 503 3,040 ers'checks outstanding 6,943 134 41. 1 5 29 7,121 Acceptances 16,102 135,219 757| 7,662 1,007 11,093 23,842 9,102. 1,783 206,567 Other liabilities 603 34,841 9821 1,523 169 1,976 2,065 5,445! 48f 62 1,396 49114 Total.. 692,320 4,203,806 359,318J 760,659 158,886 366,8311,681,302 391,268! 101,601 107,909 87,196 513,217 9,424,313 Liability for rediscounts, including those with Federal Reserve Bank 37,529 130,669 15,175J 6,52; 3,195 29,388 24.415 14,511 1,093 3,188 1,284 3,360) 270,334 I i Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

830 FEDERAL RESERVE BULLETIN. MARCH, 1920. Abstract of condition reports of State bank and trust company members of the Federal Reserve System on Nov. V19I19, arranged by classes. [In thousands of dollars.] Central reserve city banks. Other Total Total reserve Country United United Y N ( o 3 e 3 r w k C ba h ( n i 1 c k 2 a s g ) o . i S b t. a n L (9 k o s u ) i . s b T a ( n o 5 k t 4 a s l ). b b a c ( a n 1 i n t 6 k y k 2 s s ). b b a ( a n 9 n 1 k k 9 s s ). N b S ( a o 1 t n v a ,1 k . t 3 e s 1 5 s ) 7 , , J b u ( a 1 n n , e 0 k 4 3 s 2 0 ), , banks). 1919. 1919. RESOURCES. Loans and discounts 1,773,562 409,479 106,953 2,289,994 1,628,097 1,128,849 5,046,940 4,318,722 Overdrafts 471 53 19 543 2,511 2,773 5,827 3,944 Customers' liability under letters of credit 854 121 975 182 36 1,193 11,768 Customers' liability account of acceptances 123,101 23,246 6,911 153,258 38,894 3,938 196,090 179,925 Liberty bonds (exclusive of Liberty bonds borrowed) 123,545 10,883 4,041 138,469 100,867 90,464 329,800 293,548 Ot\ver United States bonds (exclusive of United States bonds borrowed) , 14 275 4,841 824 5,954 15,897 United States Victory notes 38,440 11,289 1,431 51,160 56,438 43,311 150,909 191,633 United States certificates of indebtedness 100,537 14,139 5,546 120,222 105,605 67,390 293,217 360,286 War savings and thrift stamps actually owned 59 18 81 515 658 1,254 975 Stock of Federal Reserve Bank 7,479 2,247 769 10,495 9,328 5,561 25,384 23,661 Other bonds, stocks, etc. (exclusive of securities borrowed).... 365,085 76,516 26,429 468,030 496,117 304,741 1,268,888 1,131,988 F B u a r n n k i i t n u g re h o an us d e fixtures t 39,0 1 9 4 5 4 2,7 1 2 0 5 5 2,3 5 4 5 2 1 44, 8 1 0 6 0 2 5 4 1 , , 1 9 4 5 2 6 3 5 3 , , 6 03 8 6 2 1 1 2 0 9 , , 6 15 2 4 4 11 9 5 , , 2 2 6 1 3 9 Other real estate owned 6,041 42 207 6,290 13,532 5,297 25,119 22,937 Lawful reserve with Federal Reserve Bank 269,041 45,039 12,316 326,396 152,230 84,187 562,813 514,805 Items with Federal Reserve Bank in process of collection 42,642 9,780 6,330 58,752 46,652 15,606 121,010 82,197 Due from banks and bankers 223,329 41,760 8,695 273,784 196,185 140,070 610,039 545,838 Gold coin and certificates 8,306 1,831 63 10,200 3,760 4,042 18,002 18,955 All other cash in vault 31,372 10,121 1,906 43,399 49,047 43,233 135,679 116,780 Exchanges for clearing house, also checks on banks in same 279,668 15,154 3,105 297,927 62,488 13,701 374,116 364,918 Outside checks and other cash items 18,531 7,709 1,399 27,639 21,316 7,606 56,561 36,152 Approximate interest earned but not collected. 10,451 1,192 498 12,141 5,280 3,214 20,635 21,169 Other assets 23,441 530 118 24,089 6,446 4,570 35,105 72,002 T otal 3,485,208 684,254 189,633 4,359,095 3,056,429 2,008,789 9,424,313 8,452,582 LIABILITIES. Capital stock paid in 103,800 34,500 11,600 149,900 144,050 118,919 412,869 371,979 Surplus fund 145,667 40,400 14,058 200,125 171,345 69,794 441,264 420,934 Undivided profits less expenses and taxes paid 40,669 8,126 3,219 52,014 46,373 37,071 135,458 110,351 Approximate interest and discount collected but not earned.. 5,859 1,426 645 7,930 3,867 1,863 13,660 11,191 Amount reserved for taxes accrued | 9,621 2,919 149 12,689 4,510 1,495 18,694 19,569 Amount reserved for interest accrued 8,829 1,238 246 10,313 6,099 4,453 20,865 10,512 Due to Federal Reserve Bank I 597 597 847 723 2,167 964 Due to banks and bankers 366,052 53,019 12,484 431,555 216,549 74,514 722,618 676,852 Certified and cashiers' or treasurers' checks outstanding i 219,253 7,872 1,248 228,373 35,040 12,930 276,343 222,423 Demand deposits ,016,138 307,207 81,533 2,404,878 1,292,409 894,983 4,592,270 4,092,480 Time deposits 191,188 179,656 45,357 416,201 897,062 683,142 1,996,405 1,558,941 United States deposits 56,783 11,982 2,798 71,563 32,544 13,870 117,977 337,432 Bills payable with Federal Reserve Bank 148,091 11,124 9,369 168,584 145,177 81,656 395,417 376,995 Bills payable other than with Federal Reserve Bank 8,532 6,972 15,504 9,852 Cash letters oi credit and travelers' checks outstanding 6,870 129 4 7,003 107 11 7,121 7,824 Acceptances 132,563 23,227 1,865 162,655 39,965 3,947 206,567 194,551 Other liabilities 33,825 832 58 34,715 11,953 2,446 49,114 29,732 Total. 3,485,208 684,254 189,633 4,359,095 3,056,429 2,008,789 9,424,313 8,452,582 Liability for rediscounts, including those with Federal Reserve Bank 120,061 16,078 3,115 139,254 96,736 34,344 270,334 175,934 Ratio of reserve with Federal Reserve Bank to net deposit liability (per cent) 12.6 12.7 13.3 12.6 9.5 6.9 10.4 10.8 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MARCH, 1920. FEDERAL RESERVE BULLETIN. 331 Abstract of condition reports of all member banks in each Federal Reserve district on Nov. 17, 1919 (including 7\860 national banks and 1,135 State banks and trust companies). [In thousands of dollars.] D b N a i ( n s 4 o t k 3 . r 0 s i 1 c ). t D b N a i ( n s 7 o t k 4 . r 6 s i 2 c ) t . D b N a i ( s n 6 o t 7 k . r 6 i s 3 c ) t . D b i N a s ( n o 8 t k . 4 r s 0 i 4 ) c . t D b N a i ( s n 5 o t 8 k . r 0 i s 5 c ) t . D b N a i ( s n 4 o t 2 k r . i 7 s 6 c ) t . b D ( N a 1 i n s , o 3 t k . r 6 s i 7 9 c ). t D b N a i ( s n 5 o t 3 k . r 4 i s 8 c ) t . D b N a i ( s n 9 o t 1 k . r 2 i s 9 c ) t . D b N i ( a s o 1 n t . , k r 0 1 i s 2 c 0 ) 9 t . !D b N a i ( s o n 7 t . 5 k r i 1 2 s c 1 ) t . \ D b N i a s ( o n t 7 . k r 0 s i 1 0 ) c 2 . t b U S T ( a 8 n t n o , a 9 i k t t t 9 a e e s 5 l s d ). RESOURCES. Loans and discounts 1,197,2565,131,976 973,5021,371,484 790,374 610,482 2,464,296683,791 700,262 913,272 600,462 1,166,806 16,603,963 Overdrafts 5,499 364 1,332 1,737 2,895 2,704 2,250 2,085 3,012 3,450 3,094 28,939 Customers' liability under 517 letters of credit 4,931 39 20 48 54 300 4 61 53 587 6,116 Customers' liability account 19 of acceptances 269,629 18,505 26,807 17,178 18,611 53,199 15,478 10,945 949 11,133 23,670 539,097 United States Government 72,993 securities owned * 186,8901,110,244 298,868 358,822 195,070 159,555 512,189 134,109 126,435 161,241 148,998 268,522 3,660,943 Stock of Federal Reserve Bank 7,102 22,449 7,850 9,450 4,352 3,446 12,262 4,041 3,059 3,962 3,399 5,438 86,810 Other bonds, stocks, and securities 251,4991,072,945 399,112 444,829 98,315 58,277 414,271 105,379 68,026 81,492 15,091 181,036 3,190,272 Banking house 32,457 32,342 56,269 26,366 20,477 53,363 18,247 17,228 19,772 18,163 33,542 424,995 Furniture and fixtures 2,489 4,385 3,576 4,627 2,967 3,375 7,462 2,552 3,353 3,833 3,877 7,104 49,600 Other real estate owned 1,776 12,306 5,929 10,909 3,019 5,397 7,025 5,514 3,245 3,342 4,354 8,643 71,459 Lawful reserve with Federal Reserve Bank 112,546 731,162 105,145 129,511 65,357 51,378 251,760 69,287 53,426 81,132 60,372 114,076 1,825,152 Items with Federal Reserve Bank in process of collection 46,914 154,102 58,730 55,593 44,796 22,859 63,334 44,137 5,685 42,722 39,994 18,519 597,385 Due from banks and bankers 121,730 436,066 95,610 172,700 145,563 151,824 400,561 131,800 133,156 296,232 189,273 300,841 2,575,356 Cash in vault 50,395 154,652 42,592 60,914 33,252 25,188 102, 993 21,428 20,080 28,834 22,401 40,263 602,992 Exchanges for clearing house, also checks on banks in same place 54,545 897,276 40,715 29,189 22,040 27,127 20,733 15,034 15,193 43,116 1,294,043 Outside checks and other cash items 5,831 38,090 3,875 6,735 6,332 9,308 22,251 5,603 6,612 7,305 9,623 12,814 134,379 Redemption fund and due from United States Treasurer. 2,579 5,733 3,465 5,328 2,879 1,968 4,818 2,044 1,773 2,410 2,454 3,238 38,689 Approximate interest earned butt noott ccoollected 3,328 23,719 3,646 5,336 1,787 1,313 8,449 2,615 5,659 3,352 2,041 6,285 67,530 Othher assets 6,036 42,391 1,152 2,159 1,000 1,134 4,180 1,229 283 348 2,190 62,788 Total 2,156,902 10,214,324 2,095,017 2,752,0141,462,432 1,174,668 4,483,506 1,270,2411,176,346 1,684,257 1,151,017 2,239,784 31,860,508 LIABILITIES. Capital stock paid in 123,796 342,152 103,841 158,365 87,646 69,379 242,192 86,574 68,105 87,240 73,562 123,019 1,565,871 Surplus fund 114,836 406,679 160,771 157,915 58,410 44,482 169,667 48,802 35,047 46,363 40,903 59,809 1,343,684 Undivided profits less expenses and taxes paid 49,569 177,761 44,339 62,915 25,228 17,120 67,340 21,059 21,535 25,620 20;887 39,309 572,682 Approximate interest and discount collected but not earned , 7 248 23 135 4,959 5,139 4,707 2,654 10,054 3,875 2,701 4,584 2,918 2,508 74,482 Amount reserved for taxes accrued 3,225 34,443 3, 3, 1,229 1,137 9,802 969 2,148 1,507 1,186 1,762 64,681 Amount reserved for interest accrued 1,582 16,415 2,368 3,001 1,980 1,776 5,509 1,115 1,757 1,663 410 2,834 40,410 Due to Federal Reserve Bank 1,794 4,584 212 786 5,489 365 1,306 143 1,336 349 71 16,435 Due to banks and bankers... 142,916 1,470,632167,841 226,265 191,734 165,196 558,856 219,681 148,449 332,466 186,986 267,593 4,078,615 Certified and cashiers' or treasurers' checks outstanding 32,892 582,293 14,903 16,2.50 10,471 7,872 37,441 7,372 14,303 20,961 15,689 28,588 789,035 Demand deposits 1,190,859 5,039,591976,6721,176,281 602,752 518,8071,877,428 549,158 456,657 815,550 619,878 1,025,370 14,849,003 Time deposits 269,329 816,349 330,709 653,510 291,462 202,467 1,136,803 205,296 338,246 219,643 70,099 515,580 5,049,493 United States deposits 28,539 176,016 25,826 27,227 18,784 7,963 42,517 8,284 9,582 11,660 14,106 15,805 386,309 Bills payable with Federal Bi R ll e s s e p rv ay e a B b a le n k other than 50,517 608,171 152,425 111,930 70,799 65,115 148,416 36,471 27,398 48,975 29,098 52,058 1,401,373 with Federal Reserve Bank 3,067 2,804 5,093 8,859 5,782 6,615 9,038 4,346 7,777 9,690 5,338 71,703 Cash letters of credit and 3,294 travelers' checks outstanding 302 11,063 68 142 36 57 1,319 25 35 217 110 13,763 Acceptances 78,378 287,411 19,485 27,121 17,292 19,031 53,944 15,409 10,945 949 11,310 24,401 565,676 National-bank notes outstanding 48,880 84,782 54,254 90,057 54,014 38,661 79,535 41,582 30,894 48,136 46,657 62,892 680,344 United States Government securities borrowed 4,757 67,682 24,620 20,417 7,846 2,633 10,398 7,476 2,879 6,156 5,9 6,431 167,228 Other bonds borrowed 247 1,784 11 1,491 365 331 142 6 768 217 309 6,332 Securities (other than United States or other bonds) borrowed 63 7 23 97 Other liabilities 3,942 60,314 5,616 4,129 3,033 3,806 23,970 7,906 1,170 2,663 1,025 5,718 123,292 Total. 2,156,902 10,214,324 2,095,017 2,752,014 1,462,432 1,174,668 4,483,506 1,270,2411,176,3461,684,257 1,151,017 2,239,784 31,860,508 Liability for rediscounts, including those with Federal Reserve Bank 135,083 321,708 92,560 42,864 34,268 49,920 96,381 29,898 26,703 20,155 45,447 950,810 1 Includes Liberty loan bonds, Victory notes, United States certificates of indebtedness, but excludes securities borrowed by State bank; and trust company members. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

332 FEDERAL RESERVE BULLETIN. MARCH, 1920. Abstract of condition reports of all member banks of the Federal Reserve System on Nov. 17, 1919, arranged by classes (including 7,860 national banks and 1,135 State banks and trust companies). [In thousands of dollars.] Central Reserve city banks. Total. Total. Country United United banks States States (8,366 (8,995 (8,822 banks). banks) banks) Nov. 17, June 30. 1919. 1919. RESOURCES. i j Loans and discounts |4,143,016 967,814 27<>,289 ; .,387,119 5,144,765 6,072,079 16, (=03,963 14.890,471 Overdrafts i 5,079 289 144 : 5,512 5,890 17,537 28,939 17,993 Customers' liability under letters of credi t i 4,767 209 4,976 917 223 6,116 14,789 Customers' liability account of acceptances ! 264,250 46,680 11,620 i 322,550 195,369 21,178 539, 097 440,411 United States Government securities owned i | 822,096 103,411 36,116 961,623 1,034,722 1,664,598 3,660,943 4.036,899 Stock of Federal Reserve Bank ! 17,105 4,823 1 782 23,710 i 26,884 36,216 86,810 ! 82,729 Other bonds, stocks, and securities j 669,095 117,149 44,279 830,523 | 922,964 1,436,785 3,190,272 2,947,967 Banking house I 66,933 11,025 6,574 84,532 I 148,640 191,823 424, 995 1 '402,726 Furniture and fixtures ! 644 122 751 1,517 10,400 37,683 600 ! 45,402 Other real estate owned | 7,025 198 3,794 11,017 i 26,671 33,771 n;459 68,775 I D L C t a a e u w s m e h f f s u r i n o l w m r v i e t a s h b u e a l F r t n v e e k d s w e a r i a n t l h d R F b e e a s d n e e k r r v e a e r l s B R a e n se k r v in e p B r a o n c k e ss of collection.' I ! ! 6 1 3 1 2 3 2 0 8 4 2 9 ^ , , , 9 6 9 7 0 9 9 3 7 8 8 2 j j I 1 1 4 3 2 7 0 7 4 6 , , , , 4 1 1 1 1 4 6 1 7 3 4 4 3 3 4 5 0 5 6 , , , , 3 9 5 8 3 9 3 1 0 2 9 9 7 5 1 1 5 9 9 5 1 4 4 2 , , , , 7 1 5 4 0 0 5 9 0 5 3 5 I i ; ! 3 9 5 1 4 5 2 6 8 2 4 9 , , , , 4 9 1 0 4 6 5 6 9 2 2 3 1, 5 2 0 5 8 0 7 4 1 5 1 , , , , 8 4 6 4 3 4 3 9 1 5 7 3 2 1 , , 5 8 6 5 7 2 0 9 2 7 5 5 : : , 3 3 9 1 5 9 8 5 6 2 5 2 2 1 , , 3 5 1 7 6 5 2 2 9 9 5 3 , , , , 4 6 7 0 3 7 1 7 3 2 4 4 Exchanges for clearing house, also checks on banks in ! same place ! 8S2,408 61,790 11,957 956,155 | 267,631 70,257 1,294,043 1,188,101 Outside checks and other cash items j 33,183 j 9.370 2,366 44,919 j 51,483 37,977 134,379 109,046 Redemption fund and due from United States Treasurer..; 3,256 i '4fiO 559 4,275 ! 10,855 23,559 38,689 38,484 Approximate interest earned but not collected i 18,717 ! 1,868 799 21,384 j 15,402 30,744 67,530 67,362 Other assets I 39,820 i 2,354 162 42,336 j 12,047 8, 405 62,788 114,681 Total. .18,173,729 11,705,400 515,872 10,395,001 9,869,266 11,596,241 31,860.508 ,29,243,729 LIABILITIES. Capital stock paid in 238,150 82,850 36,300 357,300 471,075 737,496 1,565,871 I 1,489,792 Surplus fund 329,717 78,050 23,133 430,900 433,487 479,297 1,343; 684 1,292,716 Undivided profits, less expenses and taxes paid 132,727 20,620 7,755 161,102 151,054 260,526 572,682 '482,889 Approximate interest and discount collected but not earned 19,051 6,200 1, S62 27,113 24,397 22,972 74,482 66,306 Amount reserved for taxes accrued 32,946 7,670 217 40,833 16,866 64,681 60,227 Amount reserved for interest accrued 11,669 1,300 451 13,420 11,232 15,758 40,410 24,302 Due to Federal Reserve Bank 597 597 5,519 10,319 16,435 11,876 Due to banks and bankers 1,389,357 362,285 111,941 1,863,583 1,695,216 519,816 078,615 3,650.502 Certified and cashiers' or treasurers' checks outstanding... 571,104 21,862 3,599 i 596,565 118,817 73,653 789,035 704;349 Demand deposits 4,012,720 791,959 215,549 5,020,228 4,396,678 5,432,097 849,003 13,195,072 Time deposits 338,621 194,610 69,504 602.735 1,423,269 3,023,489 049,493 4,343,382 United States deposits 161,215 23,877 5,265 190,357 118,045 77,907 386,309 902,339 Bills payable with Federal Reserve Bank 490,199 55,789 11,997 557,985 508,848 334,540 401,373 1,368,112 Bills payable other than with Federal Reserve Bank 300 305 19,635 51,763 71,703 68,136 Cash letters of credit and travelers' checks outstanding... 10,966 951 19 11,936 1,295 532 13,763 24,875 Acceptances S 281,976 47,426 11,574 340,976 202,867 21,833 565,676 466,586 National bank notes outstanding i 37,585 347 10,723 48,655 170,895 460,794 680,344 676,657 United States Government securities borrowed | 65,029 4,716 69,745 64,842 32,641 167,228 233,638 Other bonds borrowed i 1,590 1,590 2,285 2.457 6,332 Securities (other than United States or other bonds) bor- i rowed 97 97 Otherliabilities 49,102 8,707 1,267 59,076 32,944 123,292 175,276 Total T |8,173,729 'l, 705,400 515,872 10,395,001 >, 869,266 11,596,241 131,860, 29,243,729 Liability for rediscounts, including those with Federal i Reserve Bank ] 289,013 56,161 7,010 352,184 440,909 15-,717 | 950,810 612,505 Ratio of reserve with Federal Reserve Bank to net deposit I liability (per cent) I 13.3 13.0 13.5 13.3 10.0 10.1 .10.6 1 Includes Liberty loans, Victory notes, United States certificates of indebtedness, but excludes securities borrowed by State bank and trust company members. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MARCH, 1920. FEDERAL, RESERVE BULLETIN. 333 Classification of loans and discounts of State bank and trust company members of the Federal Reserve System, as shovm by their condition reports for Nov. 17, 1919. [In thousands of dollars.] Total D N i ( o s 3 . t 6 ri 1 c t D N ( i 1 s o 1 t . r 7 i 2 ct D N i ( o s 3 . t r 8 i 3 ct D N i ( o s 9 . t r 3 i 4 ct! D N i ( o s 4 . t r 4 i 5 ct D N i o ( s 6 . t r 3 i 6 ct D N ( i o 3 s . t 2 r 1 i 7 ct D N i ( o s 6 . t r 6 i 8 ct D N i ( o s 8 . t r 2 ic 9 t D No i ( s . 4 tr 2 1 ic 0 t D N ( i o 1 s . t 1 r 3 1 ic 1 t D N ( i o 1 s . 2 tr 0 1 ic 2 t U S n ta i t t e e s d banks).! banks). banks). banks). banks). banks). banks). banks). banks). banks). banks). banks). (1,135 banks). i __ " I I - - - On demand: | i Not secured by collateral... 28,185 98,013 4,657 I 19,941 3,091 2,670 12,403 219,944 Secured by Liberty bonds5 2,348 | 8,180 | 27,695 j 9,567 | 3,194 Victory notes, and United States Treasury certificates of indebtedness 2,187 31,807 6,432 6,250 i 843 I 1,519 i 11,505 1,952 250 53 242 1,576 64,616 Secured by other collateral. 72,466 620,753 80,935 94,047 21,842 I 57,360 1140,665 40,189 2,376 7,233 3,291 18,514 1,159,671 On time: Not secured by collateral... 211,904 673,326 36,546 95,589 45,592 ! 78,904 366,728 80,291 29,239 ! 24,527 12,956 89,138 1,744,740 Secured by Liberty bonds, Victory notes, and United States Treasury certificates of indebtedness 39,696 316,753 28,872 25,576 5,465 8,930 34,400 9,441 916 2,425 ! 1,0705,504 479,048 Secured by other collateral. 59,384 427,485 18,253 72,588 19,448 51,199 202,669 58,567 18,406 23,733 j 27,102 47,991 1,026,825 Secured by real-estate mortgages or other real-estate Uens or deeds 38,333 50,944 5,394 91,166 6,775 10,210 181,865 22,810 14,004 6,813 2,964 114,190 545,468 Acceptances of other banks discounted 9,370 94,127 I 368 3,101 180 19,638 2,773 22 4 1,426 131,009 Acceptances of this bank purchased or discounted 2,098 31,135 i 200 305 438 10,457 2,436 900 221 366 48,556 Loans and discounts not classified 263 6,323 1,210 208 8,004 Total loans and discounts. |463,623 2,344,343 181,657 408,563 102,751 226,939 |987,864 232,813 68,628 67,879 51,505 291,316 5,427,881 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

334 FEDERAL RESERVE BULLETIN. MARCH. 1920. CONDITION OF PRINCIPAL EUROPEAN BANKS OF ISSUE, 1913-1919. BANK OF ENGLAND. [Combined data for issue and banking departments.] [From the London Economist and weekly statements of the Bank of England.] [In thousands of dollars.] Doe. 31, Dec. 30, Dec. 29, Dec. 27, Dec. 26, Dec. 25, Dec. 31> 1913. 1914. 1915. 1916. 1917. 1918. 1919r ASSETS. Gold and silver 170,245 338,191 250,510 264,275 283,899 384,994 444,516 Government securities: Held by issue department 89,787 89,787 89,787 89,787 89,787 89,787 89,787 Held by banking department 64,233 72,061 159,816 278,304 283,732 346,037 450,000 Other securities 253,729 516,998 545,416 518,094 461,776 448,399 519,635 Total 577,994 1,017,037 1,045,529 1,150,460 1,119,194 1,269,217 1,503,938 LIABILITIES. Proprietor's capital 70,822 70,822 70,822 70,822 70,822 70,822 70,822 Rest (surplus) 15,827 15,978 16,118 16,111 16,065 15,850 15,923 Public deposits 49,913 131,067 241,755 253,624 204,439 115,059 93,500 Other deposits 297,280 623,182 544,914 616,715 604,232 725,287 879,075 Seven-day and other bills 66 116 87 107 50 50 63 Notes in circulation 144,686 175,872 171,833 193,081 223,586 342,149 444,555 Total 577,994 1,017,037 1,045,529 1,150,460 1,119,194 1,269,217 1,503,938 Ratio of metallic reserve to deposit and note liabilities combined—per cent 34.65 36.35 26.13 24.85 27.50 32.55 31.36 BANK OF FRANCE. [From weekly statements of the Bank of France.] [In thousands of dollars.] Dec. 20, Dec. 10, Dee. 30, I Dec. 28, Dec. 27, Dec. 26, Dec. 26, 1913. 1914.1 1915. 1916. 1917. 1918. 1919. Gold in vault 678,857 799,359 967,950 652,885 639,682 664,009 694,847 123,532 67,750 67,953 56,910 47,798 61,441 51,731 Other metallic reserve.. Total vault reserve 802,389 867,109 1,035,903 709,795 687,480 725,450 746,578 Gold held abroad 326,766 393,162 393,162 381,808 Foreign credits 203962 159,380 150,231 450,939 250,247 Government securities: Permanent investments 7,000 57,900 57,900 57,900 57,900 57,900 57,900 Advances to the Government since outbreak of war 694,800 965,000 1,428,200 2,412,500 3,309,950 4,921,500 Treasury bills discounted (advances to foreign Governments) 121,590 347,400 621,460 680,518 724,715 Other Government securities 22, 7<>fi 21,882 21,742 21,805 21,757 21,792 Loans and discounts 294,«07 41,165 82,859 119,599 176,009 203,101 248,268 Bills matured and extended 702,040 354,002 258,395 221,395 198,513 120,903 Advances on bullion, specie, securities, etc 149.074 2 150,686 222,320 254,326 236,386 234,633 282,616 Bank premises 8,536 9,702 8,895 8,935 8,960 9,121 Sundry assets 61,761 70,104 97,024 121, 111 299,202 371,942 Total.. 1,397,033 3,145,224 3,789,422 5,108,374 6,584,085 8,137,390 LIABILITIES. Capital 35,223 35,223 35,223 35,223 35,223 35,223 35,223 Surplus, including special reserves.. 8,206 8,292 8,292 8,292 8,292 8,294 Dividends unpaid 309 4,211 4,853 4,985 973 1,003 Government deposits 77,848 34,075 33,562 2,897 48,609 21,555 14,764 Other deposits 111,038 515,687 407,970 436,223 562,352 456,676 603,530 Bank notes in circulation 1,102,715 1,927,306 2,568,801 3,219,012 4,311,002 5,838,172 7,193,986 Sundry liabilities 61,694 87,165 82,922 137,911 223,194 280,590 Total ! 1,397,033 3,145,224 3,789,422 5,108,374 6,584,085 8,137,390 Ra c t o i m o b o in f e m d— eta p l e li r c c r e e n se t. rve to deposit and note liabilities 62.10 35.00 34.36 19.37 i 13.95 11.48 9.55 * No data available as ut end of 1914. incomplete data for Dec. 10, 1914 taken from the report of the minister of finance. * Advances on securities only. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MARCH, 1920. FEDERAL RESERVE BULLETIN.. 335 Condition of principal European banks of issue, 1913-1919—Continued. GERMAN REICHSBANK. [From the Deutscher Reichsanzeiger and the Deutscher Oekonomist.] [In thousands of dollars.*] Dec. 31, Dec. 31, Dec. 31, Dec. 31, Dec. 31, Dec. 31, Dec. 31, 1913. 1914. 1915. 1916. 1917. 1918. 1919. Gold 278,453 498,089 581,954 599,873 572,768 538,808 259,510 Other metallic reserve.. 65,886 8,774 7,633 3,884 43,161 4,764 4,888 Total metallic reserve 344,339 506,863 589,587 603,757 i 615,929 543,572 264,407 Imperial Treasury and Loan Bank certificates.. 10,996 208,250 306,512 100,457 312,920 1,254,599 2,626,217 Notes of other banks 3,038 1,264 745 332 160 715 470 Bills, checks, and discounted treasury bills 354,798 936,903 1,381,189 2,287,124 3,473,873 6,530,491 9,943,548 Advances on collateral 22,485 5£P 3,079 2,322 1,217 1,429 2,368 Securities 96,012 12,227 19,932 21,220 37,159 39,061 Sundry assets 53,582 51,173 64,791 186,622 497,752 569,060 585,876 Total.. 885,250 1,717,982 2,358,130 3,200,546 4,923,071 8,937,025 13,461,947 LIABILITIES. Capital paid in 42,840 42,840 42,840 42,840 42,840 42,876 ! 42,876 Surplus 16,671 17,726 19,171 20,342 21,453 22,629 I 23,700 Notes in circulation 617,240 1,200,924 1,646,465 1,917,007 2,729,324 5,285,182 8,503,352 Other liabilities payable on demand. 188,763 418,144 561,445 1,086,281 1,915.993 3,291,924 I 4,066,517 Sundry liabilities 19,736 38,348 88,209 134,076 213,461 294,414 I 825,502 *tal 885,250 I 1,717,982 2,358,130 3,200,546 4,923,071 8,937,025 13,461,947 Ratio of metallic reserve to deposit and note liabilities combined—per cent 42.72 ! 31.30 26.70 20.10 13.25 6.33 2.10 BANK OF SPAIN. [From weekly statements of the Bank of Spain and Espafia Economica y Financiera.] [In thousands of dollars.] Dec. 27, Dec. 26, Dec 31, Dec. 30, Dec. 29, Dec. 28, Dec. 27, 1913. 1914. 1915. 1916. 1917. 1918. 1919. Gold 92,490 110,446 167,375 241,423 379,595 430,072 472,041 Silver* 138,282 136,455 145,310 143,021 137,134 123,936 121,686 Total vault reserve 230,772 246,901 312,685 384,444 516,729 554,008 593,727 Credits abroad 37,374 28,474 19,917 17,403 17,253 16,881 12,819 Loans, discounts, and advances. 151,588 154,820 128,801 129,515 141,166 220,999 312,939 Government securities: Charter 1891 28,950 28,950 28,950 28,950 28,950 28,950 28,950 Charter 1899 19,300 19,300 19,300 19,300 19,300 19,300 19,300 Other 66,476 66,476 66,476 66,476 66,476 66,484 66,484 Sundry assets 18,844 29,144 31,331 25,200 16,591 43,704 8,753 Total. 553,304 574,065 607,460 671,288 806,465 950,326 1,042,972 LIABILITIES. Capital 28,950 28,950 28,950 28,950 28,950 28,950 28,950 Surplus 3,860 3,860 4,632 5,018 5,018 11,194 11,580 Government deposits. 30,052 21,855 8,661 8,656 12,112 11,933 25,113 Other deposits 92,029 117,832 137,176 146,846 185,233 225,032 199,770 Notes in circulation.. 371,385 379,258 405,334 455,496 537,088 640,030 744,266 Sundry liabilities 27,028 22,310 22,707 26,322 38,064 33,187 33,293 Total 553,304 574,065 607,460 671,288 806,465 950,326 1,042,972 Ratio of metallic reserve to deposit and note liabilities combined—per cent 46.76 47.57 56.73 62.92 70.35 63.17 61.2* 1 Figures from 1913 to 1917, inclusive, converted at the rate of $0,238; for 1918 and 1919 at the rate of $0.2382. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

336 FEDERAL RESERVE BULLETIN. MARCH, 1920. Condition of principal European banks of issue, 1913-1919—Continued. BANK OF THE NETHERLANDS. [From annual reports and weekly statements of the Bank of the Netherlands.] [In thousands of dollars.] Mar. 31, Mar. 31, Dec. 31, Dec,. 30. Dec. 29, Dec. 28, Dec. 27, 1914. 1915. 1915. 191i«6. ' j 1917. 1918. 1919. Gold coin and bullion. 64,346 116,097 172,531 i 236,216 280,690 277,155 256,204 Silver 3,866 751 2,491 ! 2,825 3,435 2,453 Total vault reserve. 68,212 116,848 175,022 ; 239,024 283,515 280,590 258,657 Loans and discounts 22,348 28,791 30,692 26,807 32,891 97,964 67,883 Foreign bills 7,657 I 3 1,007 ' 3,225 3,232 3,590 19,438 Advances 38,151 81,503 37,619 i 34,373 43,194 56,085 100,547 Government securities... 50 368 4,654 1,499 4,921 Other securities 3,619 3,334 3,588 3,657 ! 3,649 3,560 3,399 Bank premises 723 643 643 563 i 589 712 1,331 Sundry assets 638 3,674 9,974 28,577 | 26,256 35,821 16,344 Total. 141,398 235,164 258,545 340,880 ! 393,326 479,821 472,520 LIABILITIES. I Capital 8,040 i 8,040 8,040 I 8,040 I 8,040 8,040 8,040 Surplus 2,011 2,010 2,010 2,072 j 2,104 2,042 2,010 Notes in circulation 125,768 189,916 231,976 i 304,868 357,890 429.717 415,158 Interest-bearing certifies tes. 750 695 1,395 ' 1,503 1,434 '824 700 Government deposits 2,204 8,677 Other deposits 3,613 i 33,282 764 21,940 ! 12,883 35,568 41,142 Sundry liabilities 1,216 ! 1,221 3; 156 2,457 2,298 3,630 5,470 Total 141,398 I 235,164 j 258,545 j 340,880 393,326 479,821 472,520 Ratio of metallic reserve to deposit and note liabilities combined—per cent 52.41 I 52.18 i 71.33 j 72.80 74.43 60.19 56.59 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

INDEX. Acceptances: Page. Discount and open market operations of the Federal Page. Discounted by Federal Reserve Banks during Reserve Banks 303-307 January 306 Acceptances purchased and held on January 31, Held by Federal Reserve Banks on last Friday 1920 307 in January 307 Bills discounted during January, distributed by Purchased by Federal Reserve Banks during classes 306 January 306,307 Bills held by Federal Reserve Banks on last Limitation upon the aggregate rediscount of Friday in January 307 paper of one borrower made for different Bills purchased during January 306 member banks 276,278 Earning assets held during January 305 Warehouse acceptances covering goods under Number of member banks accommodated 304 contract for sale and delivery at a remote Discount policy (extract from Annual Report of the period ,. 276,277 Federal Reserve Board) 223, 239 Agricultural paper held by Federal Reserve Banks Discount rates: during January 307 In effect February 28 328 Annual report of the Federal Reserve Board, ex- Prevailing in various centers 286 tract from 223,239 Earning assets held by Federal Reserve Banks dur- Automobile accessories industry, terms of sale in.. 261 ing January 305 Automobile industry, terms of sale in 258 Electrical products industry, terms of sale in 262 Bank credit, contraction of 221 England: Bank of England, condition of, 1913-1919 334 Bank of England, condition of 334 Bank of France, condition of, 1913-1919 334 Price control of commodities in 244 Bank of Netherlands, condition of, 1913-1919 336 Wholesale prices in, 1913-1919 243 Bank of Spain, condition of, 1913-1919 335 Export credits, reduction of 217 Bank transactions, debits to individual account.. 297-299 Export trade, discussion of 217,219 Banking situation, discussion of 222 Exports: Bills of exchange, practice of handling in New Gold 221,325 Zealand 269 Gold movement, 1919 219 Branches, foreign, of American banks, list of, in Silver 221,326 operation February 28, 1920 272 United Kingdom,France,and Italy,during 1919. 218 Business and financial conditions during February .225-239 Failures, commercial, reported 274 Charts: Federal Advisory Council, meeting of 224 Growth of the check clearing and collection Federal Reserve agents' fund, transactions through, system 312 November, 1919-February, 1920 302 Par point map 308 Federal Reserve Banks: Charters issued to national banks during February. 274 Discount and open market operations of 303-307 Check clearing and collection: Resources and liabilities of 313-316 Collection of maturing items for the account of Federal Reserve notes: another Federal Reserve Bank, ruling on... 276 Note account of Federal Reserve Banks and Growth of the system, April 1917-January, agents 317 1920 310 Stock of, in the United States 327 Map showing States in which banks remit at Fiduciary powers granted to national banks 274 par 308 Foreign banking situation, discussion of 218 Number of nonmember banks on par list 309 Foreign branches of American banks, list of, in Operation of system, January 16-February 14. 308 operation February 28, 1920 272 Clearing-house bank debits 297-299 Foreign credit situation 214 Coal and coke industry, terms of sale in 266 Foreign exchange: Collateral notes held by Federal Reserve Banks Discussion of 216 during January 307 Low level for sterling 216 Commercial failures reported 274 Rates 216,219 Condition reports: Foreign trade, discussion of 219 Federal Reserve Banks 313-316 France: Member banks in selected cities 319-324 Bank of France, condition of 334 Principal European banks of issue, 1913-1919. 334-336 Price control of commodities in 246 State banks and trust company members on Wholesale prices, 1913-1919 243 November 17, 1919 329-333 German Reichsbank, condition of, 1913-1919 335 Credit, bank, contraction of 221 Gold: Credit control (extract from Annual Report of the Exports, movement of, 1919 219 Federal Reserve Board) 223, 239 Imports and exports 221, 325 Credit situation, discussion of 214 Stock of, in the United States 327 Currency, stock of, in the United States 327 Gold settlement fund, transactions through, Novem- Currency reform in India, report of committee on. 253-258 ber, 1919-February, 1920 300-302 Debits to individual account 297-299 Government financing during February 213 337 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

338 INDEX. Imports and exports: Page- New Zealand, practice of handling bills of exchange Page, Gold 221, 325 in 269 Silver '. 221,326 Nonmember banks, number of, on par list 309 Index of wholesale prices: Physical volume of trade 288 Abroad 279-282 Prices: In the United States 282-285 Address of Hon. R. McKenna before London India, report of committee on currency reform in.. 253-258 City and Midland Bank, on price situation, Interest rates prevailing in various centers 286 etc 247-252 Investment securities, depression in 223 Control of, in England, France, and Italy... 243-247 Italy: Wholesale, abroad 216, 279-282 Price control of commodities in 246 Wholesale, in the United States 282-285 Wholesale prices in, 1913-1919 243 Reserve percentages of Federal Reserve Banks 220 Law department: Resources and liabilities: Limitation upon the aggregate rediscounts of the Federal Reserve Banks 313-316 paper of one borrower made for different Member banks in selected cities 319-324 member banks 278 Rubber-goods industry, terms of sale in 260 Warehouse acceptances covering goods under Rulings of the Federal Reserve Board: contract for sale and delivery at a remote Collection of maturing items for the account of period 277 another Federal Reserve Bank 276 Live-stock paper held by Federal Reserve Banks Limitation upon the aggregate rediscounts of during January ". 307 the paper on one borrower made for different McKenna, Hon. R., address of, on price situation, member banks 276 etc., before London Joint City and Midland Warehouse acceptances covering goods under Bank 247-252 contract for sale and delivery at a remote Maturities: period 276 Bills discounted and bought 306, 316 Sale, terms of, in the principal industries 258-269 Bills purchased during January 306 Silver: Member banks: Imports and exports 221, 326 Abstract of condition reports of State bank and Stock of, in the United States 327 trust company members on November 17, State banks and trust companies: 1919 329-333 Abstract of condition reports 329-333 Number discounting during January 304 Admitted to system during February 273 Number in each district 304 Terms of sale in the principal industries 258-269 Resources and liabilities 319-324 Trade: State banks admitted to system during Feb- Export trade, discussion of 217, 219 ruary 273 Physical volume of 288 Money: Treasury financing during February 213 Per capita circulation 327 Wholesale prices: Stock of, in the United States 327 Abroad 243, 279-282 National banks: In the United States 282-285 Charters issued to, during February 274 Fiduciary powers granted to 274 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FEDERAL RESERVE DISTRICTS * FEDERAL RESERVE BANK CITIES O FEDERAL RESERVE BRANCH CITIES The branches at Helena, Mont., and Oklahoma City, Okla., have been authorized by the Federal Reserve Board but are not yet open for business. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis