Federal Reserve Bulletin, 1920-09

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

FEDERAL RESERVE BOARD. EX OPFICIO MEMBERS. W. P. G. HARDING, Governor. DAVID F. HOUSTON, EDMUND PLATT, Vice Governor, Secretary of the Treasury, Chairman, ADOLPH C. MILLER. JOHN SKELTON WILLIAMS, CHARLES S. HAMLIN. Comptroller of the Currency. WALTER S. LOGAN, General Counsel. W. T. CHAPMAN, Secretary. W. W. HOXTON, Executive Secretary. R. G. EMERSON, Assistant Secretary, H. PARKER WILLIS, W. M. IMLAY, Fiscal Agent. Director, Division of Analysis and Research. W. W. PADDOCK, M. JACOBSON, Statistician. Chief Division of Examination. E. L. SMEAD, J. E. CRANE, Chief, Division of Reports and Statistics, 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 Reserve Bank Chairman. Governor. Deputy governor. Cashier. of— Boston Frederic H. Curtiss. Chas. A. Morss... C. C. Bullen W. Willett. Pierre Jay Benj. Strong, jr.1 J. H. Case 2 L. H. Hendricks.3 New York. L. F. Sailer 3 J. D. Higgins.3 E. R. Kenzel Channing Rudd.3 G. L. Harrison A. W. Gilbart.3 Leslie R. Rounds.3 J. W. Jones.3 Philadelphia. R. L. Austin. George W. Norris. Wm. H. Hutt, jr. . W. A. Dyer. Cleveland D. C. Wills... E. R. Fancher. .. M. J. Fleming * H. G. Davis. Frank J. Zurlinden Richmond. Caldwell Hardy. George J. Seay. C. A. Peple Geo. H. Keesee. R. H. Broaddus A. S. Johnstone 4.. JohnS. Walden4... Atlanta.. Joseph A. McCord. M. B. Wellborn. L. C. Adelson M. W. Bell. Chicago.. Wm. A. Heath J. B. McDougal. C. R. McKay S. B. Cramer. B. G. McCloud4... St. Louis... Wm. McC. Martin. D. C. Biggs... O. M. Attebery J. W. White. Minneapolis. John H. Rich R. A. Young. W. B. Geery S. S. Cook Kansas City Asa E. Ramsay.. J. Z. Miller, jr C. A. Worthington. J. W. Helm. Dallas Wm. F. Ramsey. R. L. Van Zandt Lynn P. Talley Sam R. Lawder. San Francisco. John Perrin J. U. Calkins Wm. A. Day W. N. Ambrose. Ira Clerk 5 C. H. Stewart5 1 On leave of absence. 2 Acting governor. 3 Controller. 4 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: Kansas City: Buffalo branch Ray M. Gidney. Omaha branch L. H. Earhart. Cleveland: Denver branch C. A. Burkhardt. Cincinnati branch L. W. Manning. Oklahoma City branch... C. E. Daniel. Pittsburgh branch Geo. De Camp. Richmond: Dallas: Baltimore branch Morton M. Prentis. El Paso branch W. C. Weiss. Atlanta: Houston branch E. F. Gossett. New Orleans branch... Marcus Walker. Jacksonville branch... Geo. R. De Saussure. San Francisco: Birmingham branch... A. E. Walker. Los Angeles branch C. J. Shepherd. Nashville branch J. B. McNamara. Portland branch Frederick Greenwood Chicago: (acting). Detroit branch R. B. Locke. Salt Lake City branch... R. B. Motherwell. St. Louis: Seattle branch C. A. McLean (acting). Louisville branch W. P. Kincheloe. Spokane branch W. L. Partner (acting). Memphis branch J. J. Heflin. Little Rock branch A. F. Bailey. SUBSCRIPTION PRICE OF BULLETIN. The FEDERAL RESERVE BULLETIN is the Board's medium of communication with member banks of the Federal Reserve System and is the only official organ or per odical publication of the Board. It is printed in two editions, of which th^ first contains the regular official announcements, the national review of business conditions and other general matter, and is distributed without charge to the member banks of the Federal Reserve System. Additional copies may be had at a subscription price of $1.50 per annum. The second edition contains detailed analyses of Business conditions, special articles, review of foreign banking, and complete statistics showing the condition of Federal Reserve Banks. For this second edition the Board has fixed a subscription price of $4 per annum to cover the cost of paper and printing. Single copies will be sold at 40 cents. Foreign postage should be added when it will be required. Remittances should be made to the Federal Reserve Board. No complete sets of the BULLETIN for 1915, 1916, or 1917 are available. m Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

TABLE OF CONTENTS. Review of the month 897 Business, industry, and finance, August, 1920 912 Movement of loans 920 Collection conditions 922 Production and orders of underwear 925 Condition of wholesale trade 926 Terms of sale in the principal industries 928 Interest rates in the New York market 941 Official: Foreign branches of American banks • 944 State banks and trust companies admitted to system 945 Banks granted authority to accept up to 100 per cent of capital and surplus 945 Charters issued to national banks ' 946 Fiduciary powers granted to national banks 946 Rulings of the Federal Reserve Board 948 Law department 950 Miscellaneous: July crop report 943 Commercial failures reported 945 Loans for essential industry 927 Statistical: Retail trade index 951 Foreign trade index 953 Wholesale prices abroad 954 Wholesale prices in the United States. 963 Discount and interest rates prevailing in various centers 967 Physical volume of trade 968 Gold settlement fund 976 Debits to individual account, July and August 978 Discount and open-market operations of the Federal Reserve Banks 981 Operations of the Federal Reserve clearing system 986 Interdistrict time schedule 987 Resources and liabilities of the Federal Reserve Banks 988 Federal Reserve note account 993 Condition of member banks in selected cities 995 Imports and exports of gold and silver 1002 Estimated stock of money in the United States 1004 Abstract of condition of member banks 1005 Discount rates approved by the Federal Reserve Board 1004 Diagrams: Interest rates in the New York market 942 Wholesale prices in the United States 964 IV Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FEDERAL RESERVE BULLETIN VOL. 6. SEPTEMBER, 1920. No. 9 REVIEW OF THE MONTH, Conditions both in public and private finance are beginning to give unmis- Public finance during the month of August d takable evidence of a return has continued to show the toward more normal conditions. finance a s u r y same tendencies which char- Reviewing conditions since the armistice of acterized the month of July. November 12, 1918, it is found that as com- Total ordinary receipts for the period were pared with a "peak" of $1,863,476,000 on $398,400,666, while the total ordinary dis- May 16, 1919, in the total volume of paper bursements were $447,571,062, the deficit on collateraled by war obligations and held by ordinary account being thus $49,170,396. On Federal Reserve Banks; and as compared with August 9 the Secretary of the Treasury, under a peak of $1,438,204,000 on June 20, 1919, the authority of the act of September 24, 1917, representing paper of the same class under offered for subscription an issue of $150,000,000 discount at member banks (excluding amounts of one-year Treasury certificates of indebtedredjscounted), the respective figures correness, bearing interest from August 16 at the sponding to these high points to-day are rate of 6 per cent. The certificates were is- $1,314,830,000 and $693,993,000. The circusued under the same conditions as in the lation of notes has, however, increased from case of previous recent issues and the offering $2,850,944,000 on January 30, 1920, to resulted in an oversubscription of approxi- $3,120,138,000 on July 30. The reaction mately $58,000,000. The grand total of reagainst further expansion of credit and the ceipts for the month, both on ordinary and tendency toward the reduction of prices apextraordinary account (public debt included) pears clearly to be promoting the process of was about $619,600,425 as against a grand total liquidation and is resulting in a decrease of of disbursements of $567,015,712, thus creating speculation, whether in securities, commodia surplus for the month on all accounts of ties, or land. These and other facts and indi- $52,584,713. cations warrant the belief that the process The influence of Treasury finance during the of financial recovery and improvement is weli month of August upon banking and credit under way in the domestic field. Such difficonditions has been comparatively limited, as culties of a financial character as may be exis generally the case at the opening of the fiscal pected in the near future are more likely to year. There are gratifying indications that arise out of the foreign than out of the dorecent certificate issues are being well absorbed mestic situation and make a survey of the by the investing public. While the matter is foreign field important, therefore, at this time. not capable of accurate statement, the reports An examination of the credit and banking of the 815 member banks reporting weekly to situation in most of the European countries the Board supports the view that out of the shows that though progress is being made in estimated outstanding volume of tax and loan many directions it is slow, while in some of certificates of $2,570,000,000 on August 31, by the countries there has been but little or no far the larger portion, possibly close to 75 per check to the development of inflation and cent, has been distributed among the investing consequently comparatively little improvepublic, leaving only a relatively small propor- ment in the prospect for stable currency tion in the hands of the subscribing banks. relations, either with the United States or 897 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

898 FEDEKAL KESERVE BULLETIN. SEPTEMBER, 1920. with, other countries. The bearing of all this have failed to escape from a rise in commodity on our situation is recognized by many of the prices. In fact, neutral countries have been more or less compelled to endure many of the larger banks of the country which are directly financial and economic ills which have fallen concerned in foreign trade and finance.. As a upon the belligerents. result there has been careful study on the part " (2) Most currencies have depreciated in of various leading banks of existing credit con- terms of gold. ditions abroad for the purpose of ascertaining " (3) Gold itself has depreciated in terms of to what extent we are likely to be able to adjust commodities. " (4) There is a remarkable relation between ourselves to the situation. In speaking of the expansion of currencies and the rise in existing conditions the Shawmut National commodity prices. Whether this relation is Bank of Boston remarks that uso important causal or not is still a matter of dispute, though has this matter of foreign exchange rates most leading authorities attribute the rise in become that upon them depends to a large prices to the use made by Governments of currency and bank credits for financing expenextent the direction of trade and the course of diture. prices * * *. An understanding of foreign " (5) In certain cases, such as that of Gerexchange has become a necessity rather than a many, there is a great disparity between the luxury.7' The Mechanics and Metals Bank of internal and external commodity values of the New York, in a publication entitled " America's currency. Opportunity/7 notes that "it has been left with " (6) Everywhere currency and exchange the foreign exchange market * * * to disorder is hampering trade and retarding m reconstruction. In some countries it is a weigh, one upon another, all the factors upon Erime factor amongst those which are causing a which the future of Europe so vitally depends.7' reakdown of the economic and social system.77 The situation 'is also generally recognized These views lead to an analysis of price, among exporters and financial concerns develbanking, and exchange conditions in the sevoping the export trade. In a bulletin to its eral countries, with a view to ascertainment of clients, issued on August 25, the First Federal the position of the world at large and of the Foreign Banking Association calls attention to the fact that'i the adoption of a well-thought- different nations as elements in the general world problem. In concluding the study the out policy and definite plans regarding extenstatement is made that— sion of credit in merchandising to foreign "The effect of the instability of currency customers is * * * a matter of more than values upon internal trade and industry is usual importance to American manufacturers serious enough, but the effect upon internaand merchants.7' tional trade is perhaps still greater and more The foreign exchange and currency situation harmful. International trade on the modern in the different countries has scale by means of barter would be an impossitionsafnaly°siNa" been so clearly recognized as of bility; it can only be conducted with the assistance not only of money but also of credit. fundamental significance at the But the use of credit involves time bargains in present time as to have led to an extensive and money, so that if on the balance of all sales and comprehensive study conducted under the purchases a country grants credit to foreigners auspices of the International Secretariat of the either the creditors or the debtors must run an League of Nations and issued within the past exchange risk in respect of the indebtedness of month under the title Currencies After the which the date of settlement is postponed. Neither by the clearance of spot transactions War. In reviewing the situation the report nor by sales and purchases of forward exchange comes to the following conclusions: can bankers eliminate this risk.77 "The main results of the war disclosed by Finally the report comes to the conclusion the memoranda as a whole may be summarized that— as follows: " (1) All currencies have depreciated in terms "An immediate legislative reorganization of of commodities. Even those countries, such currencies might well prove premature. It as Argentina, which have escaped the necessity still remains to determine what the fundaof special expenditure for military purposes mental basis of the new systems shall be. A Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

SEPTEMBER, 1920. FEDERAL RESERVE BULLETIN. 899 universal gold standard with gold currencies cance. It shows, first of all, that some foreign of the prewar British type is generally regarded countries are recovering their capacity to exas impracticable; the way for universal or all port goods, the proceeds becoming available for but universal adoption of some form of gold the settlement of their indebtedness. It also exchange standard has not yet been prepared by either economists or business men. Still indicates the existence of actual progress less have they considered how under future toward the adjustment of our foreign-trade balconditions reasonable stability is to be given ance upon a more normal and stable footing. to the value of gold or of such other single or Figures issued by the Department of Commerce multiple standard as it may be decided to on September 3 for the trade of July, 1920, adopt. To the problem of currency, as has show total exports in that month amounting already been said, the question of credit is complementary. It is perhaps by interna- to $651,382,000, as against imports of $537,tional cooperation alone that we can now hope 170,000—an excess export balance of $114,to stay the breakdown of currency and credit 212,000. The figures made public for the prewhich over large areas is rapidly developing ceding month (June) had indicated an even into a disaster of the first magnitude." more noteworthy progress toward the restora- The views of observers in all countries, as tion of a normal balance between exportation reflected in the report of the League of Nations, and importation. While this development has based as it was upon a comprehensive ques- thus become marked during the past few tionnaire sent to a large number of experts, are months, it was not until a considerable time thus found to be in general agreement upon the after the conclusion of the armistice that essentials of the international trade, currency, such a change in the war-trade situation began and foreign exchange problems. They are also to appear. The total balance of trade in in agreement to the effect that the establish- our favor from November 1, 1918, up to July ment of a stable basis of international trade is 31, 1920, may be stated in round numbers as probably fully as important as the establish- $6,062,000,000, being the difference between ment of a stable basis of domestic trade—in- $13,910,000,000 of exports and $7,848,000,000 deed, that the latter can hardly be obtained of imports. This may be taken as an average without the former. The position of the balance in our favor of $288,669,000 per month United States, therefore, in its relation to over a period of 21 months. Our export balother countries must be reckoned as a factor of ance for July, 1920, being, as already stated, great significance in the further development approximately $114,000,000, it thus appears of our domestic business, to say nothing of the that a striking reduction in the movement of maintenance of our export trade and foreign exports as compared with imports into the commercial relationships. Further develop- country has been effected, the present balance ments and changes have occurred since the being only 40 per cent of the average. The compilation of the League of Nations report movement of our export and import figures was prepared. The general elements of the may be seen at a glance by comparing the problem, however, remain the same, and at statements since the beginning of the year 1920 least a beginning in the task of solving it has as follows: been made by obtaining a consensus of opinion l w y i i t n h g r c e u sp rr e e c n t c t y o a th n e d f e a x c c ts h a a n n g d e d c i o ff n ic d u it l i t o ie n s s u a n t d t e h r e , 1920. ex T p o o t r a t l s. im T p o o t r a t l s. of E e x x c p e o s r s ts. present day. January.. $722,063,790 $473,823,869 $248,239,921 February. 645,145,225 467,402,320 177,742,905 In our foreign-trade situation the most note- March 819,556,037 523,923,236 295,632,801 April 684,319,392 495,738,571 188,580,821 worthy development of the May 745,868,402 431,004,944 314,863,458 June 631,082,648 552,875,088 78,207,560 trade"' ^^ Past few weeks has been the July 651,381,827 537,170,351 114,211,476 relative decline of our export balance and the relative increase of our im- There has also been a very decided change in ports from abroad. This is of twofold signifi- the geographic distribution of the existing bal- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

900 FEDERAL RESERVE BULLETIN. SEPTEMBER, 1920, ance of trade, as may be seen by comparing the ing with the "pegged7' rate of approximately situation for 1919 with that of the first six $4.76, which existed until March 18, 1919, months of 1920. The Federal Reserve Board rates for sterling have passed through several in its annual report for 1919 furnished figures periods of fluctuation. Immediately after showing our trade balance with some of the the restoration of free trade in exchange principal foreign countries and with this there there was a downward movement of storling, may now be compared the corresponding which eventually carried the quotation of that figures for the first six months of 1920. currency to a low point of $3.65 late in 1919. During the early months of 1920 there was United States trade balance. another downward movement which carried [In millions of dollars.] the quotation at one time (in February) to [Minus sign denotes excess of exports from the United States. Plus sign denotes excess of imports into the United States.] about $3.18, followed by a comparatively steady recovery during the late spring and 1920 1919 1919 summer of 1920. During June, 1920, the quo- (Jan.- (Calen- (Jan.- June.) dar year.) June.) tation was advanced to a point rather better than $4, after which there was a gradual down- With European countries: United Kingdom —702 -1,970 -1,044 ward movement, accelerated during the latter France -269 - 770 — 494 Italy -157 - 384 - 235 part of July and carrying the quotation to Netherlands - 41 - 180 - 67 With Oriental countries: about $3.58 at the close of August. The British East Indies +177 + 241 + 108 Japan - 32 + 44 - 63 movement for other European currencies have China + 59 + 49 0 With A r S g o e u n t t h in A a merican countries: + 29 + 43 - 18 followed lines roughly parallel to that of Brazil + 63 + 119 + 16 sterling, francs and lire particularly being influenced in their movement by that of ster- United States movement of gold, first six months of 1920. ling exchange. [In millions of dollars.] In exchange on oriental countries there has [Minus sign denotes excess of exports from the United States. Plus sign denotes excess of imports into the United States.] been since the armistice a movement of quotations differing widely from that of the 1920 1919 1919 European exchanges, largely because of the (Jan.- (Calen- (Jan.- June.) dar year.) June.) high price of silver bullion. The decline in the value of silver which has set in during recent European countries: United Kingdom and Canada +85.0 +40.7 +31.3 months has tended to bring about a material France + .7 - 4.2 - .2 Oriental countries: reduction in the value of the Eastern curren- British India - 5.4 -34.3 - .8 Japan - 8.8 -94.1 -17.0 cies, irrespective of the circumstance that im- China -16.3 -39.1 - .8 Hongkong - .1 -30.1 + 6.1 portant changes in merchandise trade bal- South American countries: Argentina —90.0 -56.5 -30.4 ances with the United States have occurred Venezuela i -11.7 - 6.9 Mexico -13^0 - 5.9 - 2.1 during the postwar period. Exchange relations between European countries have varied This alteration in trade has not, however, considerably according to the fiscal and bankthus far reflected itself as ing conditions of the various nations, but attonChangeSitU" ^^ have been exPected in during much of the time since the armistice the exchange situation of the the exchanges of most of these nations with leading countries. Examination of the course England have been strongly in favor of the of the exchanges does not indicate that degree latter. of stability or that promise of permanent An interesting comparison designed to show adjustment which might be expected from the relative position of the London market at the fact that the nation's trade is now mov- the present time as compared with other couning as steadily as seems to be the case back tries is furnished by Barclay's Bank in its toward a more normal relationship. Start- monthly review for August: Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

SEPTEMBER, 1920. FEDERAL, RESERVE BULLETIN. 901 London quotations of exchange rates. The following statement furnishes a consolidated compilation of the foreign loans of all During war. July, 1920. kinds that have been placed in the United Parity. States during the period since the armistice. Highest. Lowest. Highest. Lowest. Summary, by countries, of foreign Government, State, and Alexandria 97£ 97f 97J municipal and corporation loans floated in the United Amsterdam 12.10 12.20 8.97 11.20 10.80 States, Nov. 1, 1918, to Sept. 1, 1920. Athens 25.22£ 31.00 30.30 Bombay 10 to gold £ 1/6 1/4 1/lH 1/9* Brussels 25.22i 47.35 43.40 [000 omitted.] Buenos Aires 47.58 58J 55i Canada 4.867 5.01 4.52 4.50 4.20 Christiania 18.159 19.63 12.65 23.85 22.80 Corporation. Cologne 20.43 174 147 State C H H o e o l p n s e g in n k g h o f a n b g g r e s n 2 1 5 8. . 1 2 5 2 9 i 19.68 12.75 1 2 0 4 5 4 . /O 3 J 0 2 9 3 0 . 3 2 /7 0 G m o e v n er t n . - m i a u p n n a d l ic . - r R o a a i d l- . u P t u il b i l t i y c . I t n r d ia u l s . - Totai Lisbon 53.28 27* 131 11 Madrid 25.22J 26.75 16.60 24.80 23.95 M N P R R P a e i o e o o t r w m n r is o d t e e g Y e v r o J i a d a r d k e n o eiro (gold) 9 5 2 2 2 4 4 5 0 5 6 . . . . . . 8 6 2 9 2 9 6 2 0 2 8 3 J J 7 40 2 4 1 5 8 5 5 4 . . . 0 9 6 6 8 5 1 2 2 1 4 4 5 0 . . . 5 9 5 2 7 0 5 5 5 7 3 0 7 1 . . . 9 2 5 7 0 0 5 4 6 1 3 5 5 5 4 . . . 1 7 0 7 0 0 5 C N B F B G r a r e e r a a n e l w n g z a a f i i c t d l u o e a m u B n r d i l t a a n i d n. $ 2 " ! 7 5 7 2 5 0 5 , , , 5 0 0 6 0 6 0 0 0 6 0 0 $4 1 4 2 8 5 , , , 4 5 0 8 0 0 7 0 0 $71,500 $27,050 " 1 1 5 i, , , " 6 0 6 5 0 6 0 0 6" $ 2 2 l 7 4 6 1 2 2 6 5 5 8 7 ,5 , , , , , 0 0 0 5 6 0 0 0 0 0 6 0 0 0 0 0 9 S St h o a c n k g h h o a l i m 18.159 19.75 9.95 17 5 . / 9 7 5 J 17. 5 5 / 0 0 I S t w al i y tzerland... 2 5 5 5 , , 0 0 0 0 0 0 2 5 5 5 , ,0 0 0 0 0 0 Switzerland 25.22J 26.40 18.72 22.25 21.75 Sweden 25,000 25,000 Yokohama 24.58 2/8* 2/7* Denmark.. 15,000 15,000 China 5,500 5,500 As is well known, the aggregate amount ad- Total.... 513,000 120,987 71,500 27,050 27,650 760,169 „ . , vanced by the United States 1 Approximate. Foreign loans. ^ - . x A Government to foreign coun- According to the League of Nations pubtries, most of it during the war, and therefore lication already cited, the breakdown of curprior to the armistice, was about $9,565,000,000. rency and exchange operations has had an During the year 1919 a British Government loan effect upon international trade which is "even of $250,000,000 was offered and placed on the greater and more harmful than its effect upon market in the United States, and since then domestic trade." Whereas before the war the other foreign government loans aggregating exchange risk involved in international inabou,t$263,000,000additionalhavebeen offered. debtedness was considered a comparatively It is understood, however, that of this aggre- minor matter, "the position in this respect is gate of over §500,000,000 of securities perhaps now entirely changed." Accordingly, as the as much as $100,000,000 were not placed. The League's report points out, l 'Americans hesiprincipal debt development of importance now tate to run the risk of accepting promises in in prospect is that of meeting the Anglo-French any currency but dollars and the debtors bond maturities, amounting technically to hesitate to undertake dollar liabilities." The $500,000,000 and falling due on October 15. same difficulty in international financing exists The technical amount of the maturities has in the case of loans to which the United States been reduced by sums which have been gener- is not a party, so that there is apparently ally unofficially stated as amounting to about a serious economic barrier to the early devel- $240,000,000, such reduction having been opment of any sound system of international effected by purchase of the bonds in the open finance. In speaking of this situation as a market. Assuming this estimate to be correct, factor in retarding reconstruction, the League there would remain a sum of about $260,000,- of Nations document remarks: 000 still to be provided for in the near future. "The mere fact that currencies have depre- No other government loan liabilities are now in ciated would not by itself be a sufficient cause for alarm. But since through the breakdown sight, since the arrangement whereby a suspenof currencies at this time the whole prewar sion of interest payments upon bonds of foreign economic system is threatened, the problem countries held by the United States Government becomes at once most urgent and difficult. has been agreed upon for a three-year period. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

902 FEDERAL RESERVE BULLETIN. SEPTEMBER, 1920. The trouble is now twofold. In the first place, the figure thus held in suspense, the balance all currencies have lost their stability, and some computed from such data as are now availare almost valueless. In the second place, the able would seem to be at least $3,000,000,000. very countries which, like Austria, are short From this, of course, must be deducted the of essential commodities are unable to obtain credit. Instability of currency helps to de-amount of indebtedness to European and other prive these countries of the possibility of countries which existed at about the time of the obtaining credit, and lack of credit prevents armistice and which was then being carried the stabilization of the currency.'7 upon the books of bankers and business men. Reference has already been made to the In exactly what form current indebtedness is . ,. , merchandise balance of the being maintained is of course uncertain. To ITnternational . some extent it consists of balances on the balance of United United States, and it has been states* noted that this balance is books of foreign banks which have been established there in favor of American creditors and gradually returning toward normal. Existing which they have not withdrawn because of the conditions, however, grow out of the fact that unfavorable exchange conditions. To some a large part of the balance which has develextent it consists of merchandise balances, oped during past months has not been financed which always amount to a considerable sum on a solid basis. The conditions which have but which at the present time are undoubtexisted during much of the time since the edly far greater than usual because of the armistice are illustrated by the fact that so longer extension of credit which has been few foreign securities have been placed in this granted by not a few export houses in order country during that period. Exactly how that they might relieve their foreign customers large the balance above referred to may be at of pressure for immediate funds so far as practhe present time is a matter of estimate and to ticable. A part of the indebtedness consists some extent of conjecture. But taking into acof short-term obligations of one sort or another count the merchandise balance in our favor which are steadily maturing and must be since the armistice amounting to $6,062,000,000 taken care of out of the proceeds of current and offsetting it with the advances made by the exportations from European countries to the United States, which since the armistice may United States or of services. It is this great be roughly stated at $2,500,000,000, the small accumulation of balances which in large volume of foreign loans placed in the United measure operates to keep the exchange market States during a like period amounting to in an unstable and unsatisfactory condition. $660,000,000, and estimates which may be At any given moment a considerable volume approximately made of the amounts of Amerof exchange may be suddenly thrown upon the ican capital invested during the past few market, with the result of depressing quotamonths in Germany and other countries, it tions and bringing about an undesirable and still remains true that the international trade disturbing irregularity and uncertainty in the balance in favor of the United States for the exchange market. The existence of this outfinancing of which no satisfactory provision has standing current debt, for which no satisbeen made in the form of investment obligafactory provision has been made, may be extions is a very large one. Account must be pected to continue to exert a depressing influtaken of a net loss of $400,000,000 of gold by ence upon quotations and presents, therefore, the United States during the period and of paya disturbing factor in postwar international ments received for the service of our merchant finance. ships to foreigners, as well as of the by no means inconsiderable disbursements of the United While it has been hoped that during the States Government on account of its military and current year there would be naval forces stationed abroad, besides amounts : decided Pro?ress toward imof goods of American origin held unsold abroad. provement in currency and While there can be no absolute certainty as to credit conditions in foreign countries", it may Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

SEPTEMBER, 1920. FEDERAL RESERVE BULLETIN. 903 seriously be doubted whether much progress in TABLE *A.—Currency expansion and rates of exchange. that direction has actually been made. There Expansion of Rates of exchange on had been a continued growth of currency, with currency of London; per cent of all kinds. parity. r t a h e ll s e u o c l f t l i o n t s h g e e r o E e f a u c r 1 t o 9 i p o 1 e n 9 a , n o a n s c o t s u h e n e e t n r e ie i x n s c h u ta a p b n l g t e o e s A a ; i d f n o a l t n l e o e w n a e r in l a y g r , = p C ( w 1 1 1 a o 9 9 0 i r m 1 1 t e 0 3 h 3 - d ). P t f = ( i i U r o 1 g o n u 0 . p a r 0 K o e t ) e s r . . -A u s in t h m o d n c w o a l n 1 t - e . N 1 o 91 v 9 . . 7, o A g 1 f 9 t u 2 A s e 0 t u n , .1 - d issued by the League of Nations. United States (August, 1919). 171 70 -86.4 85.3 73 In order to furnish data more nearly con- Spain (September, 1919) 185 76 87.0 84.1 94 Japan (May, 1919) 223 91 92.3 84.5 73 temporary, the following table B has been pre- Switzerland(September, 1919) 230 94 93.0 91.5 86 Denmark (August, 1919) 240 98 106.7 107.5 136 pared to afford a basis of comparison of note United Kingdom 244 100 Netherlands(September,1919) 270 111 92.2 90.8 92 circulation in leading countries before the war Sweden (September, 1919)... 275 113 94.1 97.2 97 Norway (August, 1919) 305 125 100.9 100.9 137 and at present. As is evidenced, there is no France (September, 1919) 375 153 137.6 148.0 204 Italy (May, 1919) 435 178 150.4 183.5 303 direct comparison between the two tables. Germany (October, 1919) 875 359 435.1 707.3 857 1 Added to originaltable for comparative purposes TABLE B.—Increase in note circulation. [In millions of currency.] Compared Country. Date. Amount. Per cent. Date. Amount. with 1913— per cent. United States *... Jan. 1,1914 SI,069.1 100 Aug. 1,1920 $4.361.1 407.9 United Kingdom. Dec. 30,1913 £ 46.7 100 Aug. 11,1920 £ 464.1 993.8 France Dec. 26,1913 Fr. 5,713.6 100 Aug. 19,1920 Fr. 37.899.8 663.3 Germany 2 Dec. 31,1913 M. 2,593.4 100 July 31,1920 M. 69,096.5 2,664.3 Italy3 do L. 1,764.4 100 June 30,1920 L. 13,827.6 783.7 Do 4 .do. L. 2,782.6 100 Sept. 30,1919 L. 16,356.2 587.8 Belgium .do., Fr. 1,049.8 100 Aug. 5,1920 Fr. 5,464.6 520.5 Spain .do.. Pes.l,931.3 100 Aug. 14,1920 Pes. 3,982.1 206.2 Japan .do., Yen 426.4 100 July 31,1920 Yeni: 202.4 282.0 Sweden .do. Kr. 234.5 100 do Kr. 724.8 309.1 Netherlands.: .do. Fl. 333.8 100 July 26,1920 Fl. 1.,017.2 304.7 Denmark ..do. Kr. 151.6 100 July 31,1920 Kr. 541.2 357.0 Norway ..do. Kr. 106.8 100 Aug. 16,1920 Kr. 457.3 428.2 Switzerland ..do. Fr. 313.8 100 July 31,1920 Fr. 951.1 303.1 1 Includes amounts of United States notes, Treasury notes, and national-bank notes in circulation on Jan. 2, 1914, and amounts of Federal Reserve notes, Federal Reserve Bank notes, United States notes, Treasury notes, and national-bank notes in circulation on Aug. 1, 1920, as shown by the Treasury circulation statements. 2 Including Reichsbank and war loan bank notes, but excluding Treasury notes and notes of other four banks of issue. 3 Figures for the Bank of Italy only. 4 Figures for the three banks of issue (Bank of Italy, Bank of Naples, and Bank of Sicily) and the Italian Government. It will be observed that credit expansion has to limit the commercial commitments the continued in practically all countries through- banks are willing to make. out the year 1920 instead of there being, as With respect to the English banking situait had been hoped at the opening of the year tion it appears that during the first six months that there might be, a restoration of sounder of 1920 deposits of the five largest joint stock conditions. As has recently been remarked by banks show an increase of 2.3 per cent, as an American institution engaged in foreign compared with an increase of 3 per cent trade financing, " there is a condition of dis-during the last half of the year 1919 and 15.4 organization of merchandise credit machinery" per cent during the first half. "Advances" in many parts of the world, and "over the (largely on war securities) made by this same largest part of Europe banking machinery group, of banks, however, show an increase of suffers from disorganization * * * in the about 14 per cent since the first of the year, sense and to the extent that the responsibility which compares with an increase of 34 per of the bankers forbids them to carry on certain cent in the second half of the year 1919. It banking functions absolutely necessary to the should be noted, however, that the increase well-oiled movement of merchandise financing in the item "Advances" has been partially on a normal basis." Unfortunately, such offset by the decrease in the item " Other efforts at "deflation" as have been made do investments." not seem to affect the growth of public loans With respect to the English currency situaand currency which have continued in many tion, it appears that so far from there having countries to expand, but they tend merely been a decrease in circulation, the volume of Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

904 FEDERAL RESERVE BULLETIN. SEPTEMBER, 1020. currency (including both Bank of England and 1919. The general movement in the portfolios currency notes) has increased by 5.4 per cent of the Federal Reserve Banks is toward the from the opening of the current year up to reduction of war paper and the increase of July 28, as compared with an increase of 4.7 commercial paper. The latter movement is per cent during the second half of the year 1919. particularly marked at the moment because of For the United States the course of Federal the unquestioned obligation of the Federal Reserve notes and of reserve holdings at Reserve System to meet the current seasonal Federal Reserve Banks since the beginning of requirements of productive industry ungrudgthe year 1920 may be reviewed as follows: ingly in the present critical period of business transition. Indiscriminate liquidation of cred- [In millions of dollars.] its has not been the object of the recent policy Federal Reserve Total of the Federal Reserve System. The primary notes in reserves. circulation. concern of the Federal Reserve Board now, as Jan. 30,1920 2,851 2,074 always, has been to make sure that the essen- Feb. 27,1920 3,020 2,083 Mar. 26,1920 3,048 2,057 tial credit needs of American industry are M Ap a r y . 3 2 0 8 , , 1 1 9 9 2 2 0 0 3 3 , , 1 0 0 7 7 5 2 2 , , 0 0 7 9 1 2 being met. But, because of the extended con- June 25,1920 3,117 2,109 dition of the banks of the country, the Federal July 30,1920 3,120 2,129 Aug. 27,1920 3,204 2,128 Reserve System has sought to accomplish its These figures must, however, be considered object, so far as might be found practicable, by in connection with data showing the member taking measures to promote the liquidation of banking situation, and accordingly the follow- speculative and inactive credits which were ing table has been prepared to indicate the serving no necessary purpose, in the expectageneral trend of the banking position during tion that the funds thus liberated would be the past month: made available for the use of current industry and the credit needs of industry thus be pro- [In millions of dollars.] vided for in a normal and healthy way, and Loans without involving the danger of further and (including Redisredis- counts avoidable impairment of the reserve strength counts) and bills Date. N of u b m a b n e k r s ve a s n t d m e in n - ts pa w y i a t b h le de N m e a t nd of the Federal Reserve System. reporting. (including Federal deposits. In harmony with this attitude, the Federal United Reserve States Banks. Reserve Board has, however, securities). Essential loans. . , , i ,-, -, , ,, consistently adhered to the Aug. 6,1920 815 16,813 2,022 11,312 Aug. 13,1920 818 16,829 2,050 11,392 policy of leaving entirely in the hands of local Aug. 20,1920 818 16,883 2,086 11,256 Aug. 27,1920 820 16,931 2,128 11,261 banks the decision what loans are to be regarded as nonessential or "speculative." Governor The test of the improvement of the banking Harding has outlined the attitude of the Board position of the country generally is not to be on this subject, stating that "it has never sought in figures of total volume of credit but undertaken to classify any business or industry in the character of the obligations created as essential or nonessential and does not intend and carried in the portfolios of both member to do so." Governor Harding has further called banks and Federal Reserve Banks. In analyzattention to the fact that "expansion of undue ing the figures consideration should be given bank credit has been restrained," while he also to the fact that there have been material noted that "the fact that the general volume of changes in the general character of banking loans and discounts remains practically the demand. As noted a month ago, speculation same would seem to indicate that the solid in commodities has been largely checked in and genuine business interests of the country many parts of the country, while the check have encountered no serious hardship." Conalready administered to stock and securities tinuing his discussion of the general credit speculation has necessarily taken a consid- situation, Governor Harding remarks: erable load off the banking and credit "The Federal Reserve Board has consistorganization of the country as compared with ently from the beginning of the effort to curb the Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

SEPTEMBER, 1920. FEDERAL RESERVE BULLETIN. 905 tendency to headlong resort to credit operations indebtedness likewise tends to make conditions simply urged the local banker to study his client more difficult. thoroughly, and the Board has never under- The current situation with respect to price taken to say what class of loans should be developments is naturally held to be necessary or otherwise. The Board is too far removed from the actual detailed andrabroadh°me closely allied to the exchange situations involved to undertake to do this situation, not only because it and has relied on the consistent information reflects in a complex way the results of inflaand judgment of the local banker to accomtion and the changes in the value of foreign plish the Board's purpose. * * * The difficulty is no doubt that many critics of the Board currencies, but also changes in the volume of think that the same rules of action employed production. Exactly how far fluctuations in during the stress of the war and the selection prices are due to changes in volume of producof preferred war business for credit assistance tion and how far to banking inflation is not are now in operation. This is entirely untrue, capable of accurate determination. There can, and the reports coming daily to the Board from the Federal Reserve Banks and from however, be no difference of opinion as to the many sources of commercial intelligence dis- fact that changes in the levels of prices in differtinctly contradict it." ent countries are influenced by all of these factors and that such changes when compared The extent to which the unsatisfactory, not with changes in the price levels in other counto say disordered, state of credit Prices and -, -,. -, -, , tries necessarily influence the flow of interexchanges. and currency disclosed above m national trade profoundly. Without doubt the the review of the situation in rapid and extensive fluctuations in the value of Europe has affected the course of the foreign exchange which had been brought about by exchanges in the American market in recent alterations in currency value, by Government months is not susceptible of accurate measurefiscal operations, and by the " dumping" of large ment, but their failure to show recovery in quantities of bills on the market because of the the face of reduction of trade balances against fear of their holders that loss might result from the leading European countries suggests the continuous holding of them, have profoundly conclusion that currency depreciation and disturbed prices from time to time and may be banking expansion is the most serious present regarded as factors explanatory of the excause of disturbance in the foreign exchanges. tremes to which price quotations have gone. The fluctuations of exchange due directly Index numbers for some of the principal counto changes in currency conditions are of vital tries show that prices are much higher now than importance in competitive trade because of they were approximately a year ago. A retheir influence on prices. Those countries view of such numbers for the past few months, whose currency is depreciated in terms of however, shows that the tendency is disthat of others presumably find it more costly tinctly downward both in England and in the to buy goods in countries where rates are United States. A similar movement is also high, while on the other hand the export trade to be noted in various continental countries, with those countries whose exchange rates are although obscured there to a greater extent low is subject to the difficulty of obtaining through the existence of currency expansion. settlement from customers, while again competitive exporters in low-exchange countries are Wholesale priceindexes. temporarily aided in selling their goods in neutral markets. This is a situation which the August, April, Mav, June, July, 1919. 1920. 1920. 1920. 1920. United States has been obliged continuously to meet for some time past. Inflation and uncer- Sweden 321 354 361 366 364 tainty in the currency and banking systems Japan . 251 300 272 248 239 Italy 368 679 659 614 of different countries and embargoes on the India 204 200 210 206 209 France 347 584 550 493 492 exportation of gold tend to aggravate such Canada 223 261 263 258 256 United Kingdom.. 250 13 305 300 299 instability of exchange, while the recurring Australia 182 -'17 225 233 United States 226 26f. 272 268 262 necessity of meeting maturities in international Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

906 FEDERAL RESERVE BULLETIN. SEPTEMBER, 1920. It must not be overlooked that in a long Exports of United Kingdom, France, and Italy during 1919 and to June, 1920. view of the problem the ess en- [In millions of dollars at gold parity.] tkl bask °f b0th currenc3r and exchange improvement is to be United King- France.2 Italy. sought mainly in the state of industry and the dom.1 recovery of productive capacity. Accord- 1919. ingly, chief attention has been centered for the January 253 67 44 February 253 68 51 past few months upon the activity of industry March 302 93 60 April. 350 82 59 in the several countries, and as a result of May 369 98 57 June 372 110 79 such activity the recovery of their export July 375 72 August. 438 88 capacity. September • 400 134 110 October. .. 480 139 124 During the past few months the Board has November 523 134 113 December 570 (3) 147 published production data for the United States 1920. whose figures have shown a tendency toward January 639 139 83 February 528 255 103 increase not only in business activity but in March 636 259 115 April. 616 266 113 physical output of goods in certain basic indus- May 679 233 June....... 664 349 tries. The figures for the current month are presented in the following table: 1 2 F In ig c u lu re d s i n b g a s r e e d e x o p n o r 1 t 9 s 1 . 8 value units. a A change in the value units employed in calculating the figures for July, August, and December makes them incomparable. French exports for the year 1919 valued at 1918 rates amount to $1,682,000,000. June, 1920. July, L920. July, 1919. Proceeding on the assumption that exports Total. R ti e v l e a . - Total. t R iv el e a . - Total. t R iv el e a . - represent a surplus in industrial output which can be spared by the population and shipped Receipts of live stock at abroad, there is thus seen to be a distinct ad- 15 western markets (in thousands of head) 5,064 91 4,632 84 5,536 100 vance from a period shortly after the armi- Receipts of grain at 17 interior centers (in thou- stice up to the present time in each of the three sands of bushels) 80,058 74 84,331 78 108,713 100 Shipment of lumber re- countries which are taken as typical. Aside ported by 3 associations (in millions of feet) 685 75 661 73 909 100 from the export figures, it is still difficult to Bituminous coal production (in thousands of get complete data relating to economic and short tons) 44,463 108 45,527 110 41,205 100 Anthracite coal produc- productive conditions, but some important tion (in thousands of short tons) 7,754 99 7,785 100 7,803 100 features of the situation in several of the Euro- Crude petroleum production (in thousands of pean countries may be briefly reviewed. barrels) 37,295 110 38,419 113 33,894 100 Pig iron production (in V In the following table is shown monthly thousands of long tons).. 3,044 125 3,067 126 2,429 100 Steel ingot production (in production of coal, pig iron, steel ingots and thousands of long tons).. 2,981 119 2,803 112 2,508 100 Cotton consumption (in castings, and ship tonnage under construction thousands of bales) 556 109 525 103 510 100 Wool consumption (in for the first six months of 1920 in the United thousands of pounds) 40,680 74 32,372 59 54,973 100 Kingdom: While the data relating to production in Steel Ship tonforeign countries are scanty and inadequate at Date. Coal. Pig iron. in a g n o d ts n c a o g n e s u tr n u d c e - r the present time, so that statistical compar- castings. tion. isons, either with former years or with conditions in the United States, can not be drawn, Metric Metric Metric tons. tons. tons. Gross tons. •there are data which throw a valuable light on Monthly average, 1913.. 24,336,000 869,000 649,000 1 2,003,000 the general economic situation as influenced by January.. 1920 222,657,000 676,000 766,000 productive capacity. The first set of facts February. 19,435,000 656,000 811,000 March 19,505,000 710,000 854,000 3,394,000 which may be considered to advantage relates April 17,131,000 655,000 779,000 May 2 22,131,000 738,000 848,000 to the export power of various nations. Facts June 19,048,000 726,000 745,000 3,578,000 July 2 22,926,000 750,000 800,000 as to Great Britain, France, and Italy are stated in the following table: 1 Average of 4 quarterly estimates, Figures following are estimates taken at the end of each quarter. 2 5 weeks in the month. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

SEPTEMBER, 1920. FEDERAL RESERVE BULLETIN. 907 In countries such as France which sustained French coal production. severe industrial devastation, evidence of Tons. Monthly average, 1913 2,982,500 recovery is to be sought in the work of eco- January, 1920 1, 749, 389 nomic restoration rather than in conven- February, 1920 1, 557, 787 tional figures of national production. March, 1920 1,451,506 Among the encouraging factors which indi- April, 1920 1, 426, 684 May, 1920 806,285 cate economic recuperation in France, as set June, 1920 1, 896, 235 forth by M. Tardieu in a recent statement, July 1-20, 1920...; 1,162,553 the most striking are those in regard to the Statistics of the Belgian production of coal, invaded districts. The committee of the pig iron, manufactured iron, steel ingots and devastated regions has recently announced castings, and crude zinc are presented in the that 74 per cent of the population driven out following table: of these regions by the war has returned, that 98 per cent of the municipal governments 8 d 3 es t p r e o r y e c d e nt h a o v f e th be e e s n c h r o e o e l s s t a e b x li i s s h ti e n d g , b a ef n o d re t h th a e t Date. Coal. Pig iron. fa M c ir t a o u n n r u e . - d ca in S s a t g t n i e o n d e t g l s s. C z r in u c d . e war have been reopened. Of the 574,744 houses in the region which were one-half or Metric Metric Metric Metric Monthly average, Metric tons. tons. tons. tons. tons. wholly destroyed, 13,100 have been rebuilt and 1913 1,910,710 207,058 25,362 205,552 17,910 178,500 repaired, and of the arable ground 1920 January 1,869,635 40,820 15,318 56,006 4,060 torn up either by shell fire or by troops, 38 February... 1,683,750 51,773 16,858 70,848 4,560 March 2,006,160 66,009 14,525 78,985 5,841 per cent has received its first plowing. The A M p a r y il 1,900,750 1 7 9 5 1 , , 6 8 8 4 6 2 1 1 1 5 7 , , 5 5 2 3 7 7 100,274 6,927 main lines of all the railroads in this district June have been repaired and half the branch lines NOTE.—Figures obtained from Economic Review of May 26 and are now in working order. Of the 11,500 June 9. Iron Trade Review, Aug. 12. factories destroyed, 3,540 are working again Coal production in Germany is as follows: and 3,812 are in process of rebuilding. There were 72 blast furnaces in operation in this [Taken from the Economic Review, May 19, 1920.J district in 1914; in 1920 17 are in operation and 20 more almost ready to be lighted. Coal. Lignite. Coke. C br o i a - l Li b g r n i- ite quettes. quettes. Crops throughout France are reported to be much better in 1920 than in 1919. The fol- Totaloutputin March, lowing table shows the increase in the area 1920, excluding the Saar district and Tons. Tons. Tons. Tons. Tons. sown to grain: the Palatinate 10,146,299 7,901,5951,871,332 376,1181L, 666,594 Total output from January to March, [In hectares.] 1920..; 30,699,793 25,009,552 5,712,810 1,057,268 5,256,611 Total output in March, 1919, exclud- 1919 1920 ing Alsace and Lorraine but including the Saar district Wheat 4,486,000 4,601,000 and the Palatinate..10,120,104 7,423,675 1,912,101 362,4761,541,860 Meslin 82,550 92,780 Output of the Saar Rye 734,090 792,760 district and the Barley 102,590 140,170 Palatinate in Oats . . 668,440 741,760 March, 1919 762,251 72,915 Total output from January to March, Flax acreage has trebled since 1919, and the 1919, including that of the Saar district prospects for the flax and hemp harvests are and the Palatinate..29,113,70221,054,443 5,395,251 953,095 4,304,248 Output of the Saar excellent. The industrial activity of the coun- district and the Palatinate from try is indicated by the many fairs and exposi- January to March, 1919 2,407,475 208,118 tions which have been held to promote internal Total output in March, 1913, includcommerce. French coaJ production is, how- ing that of Alsace and Lorraine 15,413,378 6,706,2212,744,350 462,0141,627,304 ever, still below its prewar level, although since OutDut of Alsace and Lorraine, the Saar the prolonged strike in May it has begun to district, and the Palatinate in improve, as is shown by the following table: March, 1913 1,435,895 1,444,816 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

908 FEDERAL RESERVE BULLETIN. SEPTEMBER, 1920 The relation of production, and as a result bankers have been able to see but little adexport power, to exchange quotations is in all vantage in the foreign expansion of their instiordinary or normal conditions a very direct tutions and have been disposed to avoid losses one. It had therefore been supposed by some which might be incurred through the making that as export capacity increased exchange of large commitments expressed in the paper of would move back toward normal. Experience the countries where their branches might be during the past few months has not shown that located. Great Britain in the effort to expand this is necessarily the case, since even in those her foreign trade and restore it to a prewar countries such as Great Britain, which were basis has probably proceeded more actively largely increasing their ability to ship goods, than any other country, her dealings, however, there has been at times a simultaneous re- being primarily expressed in terms of sterling, duction in the value of exchange. Even if as was the case with prewar trade. there were at the present time an absolute For July, 1920, British trade returns are balance of exportation and importation be- reported to show a growth to £137,000,000 tween, say, the United States and Great from £65,000,000 a year earlier. There has Britain, this would not necessarily restore the been during recent months a steady reduction old relationship in the exchanges of the two of the adverse balance of trade from which countries because of the profound effect ex- Great Britain was suffering at the close of the erted by depreciation of currency, as measured war. While other European countries have in terms of the gold standard, and the local not succeeded in paralleling the advance of credit situation in the different foreign countries. Great Britain in this regard some of them have It is only in the relationship of countries made decided progress. What has been done on the gold standard and where the currency in this direction, however, has been largely for and other credit obligations are as a matter the purpose of meeting immediate necessities of fact freely converted into gold that the and obtaining immediate further supplies of balance of exports and imports is the con- goods, and has not been of sufficient amount to trolling factor in the course and rate of the furnish even the basis for permanent investforeign exchanges. ment or the improvement of production The difficulties to which international lending abroad. Although European banks have proand financing are subjected by ceeded actively in the making of acceptances trade reason of bad curren°y and and the development of commerce, they have not been able to furnish the capital which was banking conditions in the sevneeded for foreign investment, while the general eral countries have been partially responsible financial stringency throughout the world has for the slowness with which foreign trade rendered it exceptionally difficult to obtain banks have been developed. In the United capital upon terms which would be profitable- States thus far there has been but one or- For all these reasons the relation of foreign ganization chartered under the so-called Edge banks to export trade has been different from Act, and while in foreign countries, such that which existed before the war, because at a as Canada and Great Britain some progress time when there was currency stability and has been made toward the establishment of uniformity it was possible to work upon an new branches abroad, this progress has been established basis of value and hence to offer relatively slow and hesitating. Branches of securities to the investor with an assurance all financial institutions, both those existing that they would be paid in a form that would before the war and maintained thereafter, and return him the value he had loaned. those newly established, have found themselves seriously handicapped by the exchange There has been comparatively little change uncertainties which have prevented them from in the international distribution making advances to traders and producers in of Sold durinS the Past ^w the countries in which they were situated. In months. The following table these circumstances American banks and shows the reserve position of some of the prin- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

SEPTEMBER, 1920. FEDERAL RESERVE BULLETIN. 909 cipal institutions, as it has developed during regarded as practically out of the question. the past year and a half. The questionnaire distributed by the League of Nations, already referred to, contained an Central bank deposits, total note circulation, and gold inquiry as to the possibility of international reserves in Great Britain, France, and Italy. action or policy aiming at reorganization of [In millions of dollars.] the currency and foreign exchange situation of the various countries, and brought forth the Great Britain. Bank of France. Bank of Italy. general opinion that:— End of month. "It would, indeed, be useless to attempt to construct and put into operation a new currency system so long as the essential data are continuously and rapidly changing under the 1919. action of forces which would upset the equi- January 1,834 6,173 1,741 173 February... 1,874 6,314 1,730 172 librium of any system however perfect. In March 1,955 6,441 1,768 172 April 2,071 6,558 1,812 172 fact, it seems evident that something approach- May 2,051 6,574 1,797 172 ing currency stability must be attained before June 2,047 6,647 1,841 170 July 2,035 6,760 1,948 170 currency reorganization by legislative action August 7 1,999 6,772 1,998 170 September.. 7 2,009 6,907 2,130 170 is attempted. The conditions of stability have October 7 2,040 7,136 2,307 170 been clearly indicated by the economists and November.. 72,057 7,223 2,363 170 December.. 7 2,168 7,194 2,449 170 others who have analyzed the causes of in- 1920. stability; the most important are the termina- January 756 7 2,014 7,253 2,314 170 tion of inflationist methods of financing Gov- February... 7 2,031 7,313 2,266 170 March 72,115 7,251 2,325 170 ernment expenditure, the settlement of inter- A M p a r y il 7 7 2 2 , , 1 1 9 3 9 4 7 7 , , 2 3 7 1 4 8 2 2 , ,4 4 2 9 1 5 1 17 7 0 0 national balances of trade and payment by June 7 2,258 7,246 2,669 170 means involving a far less considerable strain July 651 7 2,281 7,275 than that which at present presses upon the 1 Public and other deposits. currencies of borrowing countries, the elimina- 2 Currency and Bank of England notes. tion of the large and incommensurate potential -Including $138,695,000 held by the exchequer. 4Includes Government and other deposits, also dividends unpaid. cause of the disturbance of currency values 6 5 C E o x m cl p u o s s iv ed e o o f f g t o h l e d h fo e l l l d o w a i b n r g o a t d h . ree items: (1) Debiti a vista; (2) De- constituted by the large foreign holdings of positi in conto corrente iruttifero; (3) Conti correnti passivi. some currencies, and the internal private 7 Exclusive of Bank of England notes held by the exchequer as reserve against currency notes outstanding. (In this connection attention may hoarding of others, and the removal of much of be called to the table furnished on p. 667 of the BULLETIN for July, 1920, the uncertainty which at present exists as to where the note circulation of the United Kingdom at the end of May, 1920, is given as £459,780,000. This figure contains an error, as it in- the effects of the economic and financial clauses r c e lu se d r e v s e .) twice over £7,850,000 bank notes held in the currency note of the treaties of peace.'7 In these circumstances it is not strange that Apparently there is thus far no definite Government control of specie movement has movement looking in the direction of a restoracontinued in practically all western countries tion of currency and banking conditions to except the United States. Cessation of Gov- anything like the position which they occupied ernment oversight would probably result in before the war, notwithstanding that an evenloss of considerable parts of the specie stocks tual adjustment and the termination of strinof various countries and might thus embarrass gent Government control in the various counand delay the eventual restoration of sound tries will be essential to the attainment of currency conditions. Although the reserve permanent stability. holdings of many of the foreign banks are con- During the month ending August 10 the net sidered entirely inadequate to the resumption outward movement of gold was Gold and silver of convertibility under present conditions, they $2,208,000, as compared with a movements. might serve as a satisfactory beginning in that net inward movement of $11,direction should it be possible to bring about 517,000 for the month ending July 10. Net a more normal international trade relationship imports of gold since August 1, 1914, were and a greater stability of public finance. $706,376,000, as may be seen from the follow- Nevertheless, at the present time the restora- ing exhibit. (See next page.) tion of conditions that would permit the free England furnished $14,084,000, or over threemovement of gold and of specie in general is fourths of the $18,254,000 of gold imported' 9149°—20 2 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

910 FEDERAL RESERVE BULLETIN. SEPTEMBER, 1920, during the monthly period ending August 10, silver imported during the monthly period Canada, Colombia, France, and Mexico fur- ending August 10, most of the remainder nishing most of the remainder. Of the gold coming from Colombia, Canada, Bolivia, and exports, amounting to $20,462,000, over three- the Dutch East Indies. Of the $5,962,000 of fourths, or $15,582,000, was consigned to silver exports, $1,899,000 was consigned to Japan, $2,100,000 to the French East Indies, Hongkong, $1,657,000 to England, $1,065,000 and the remainder principally to Hongkong, to China, and the remainder principally to British India, Mexico, and Canada. Since the Japan, Canada, and Mexico. removal of the gold embargo on June 9, 1919, Moderate liquidation of the principal loan total gold exports have amounted to approxi- and investment accounts, acmately $579,515,000. Ot this total, $146,- situa«on.an "g companied by a substantial 555,000 was consigned to Argentina, $126,027,- reduction in net demand de- 000 to Japan, $66,084,000. to Hongkong, posits and a further increase in accommoda- $55,396,000 to China, $40,411,000 to British tion at the Federal Reserve Banks, are the India, $29,778,000 to Spain, and the remainder main developments in the banking field as principally to Uruguay, Mexico, the Dutch indicated by the weekly condition statements East Indies, the Straits Settlements, Canada, of about 815 member banks in leading cities and Venezuela. for the period July 16 to August 20. Holdings of Government securities showed [In thousands of dollars.) a downward course until the last week under Excess of review, when, as a consequence of the August Imports. Exports. im o p v o e r r ts 16 issue of about 157 millions of loan certifiexports. cates, certificate holdings increased by 50 Aug. 1 to Dec. 31, 1914 23,253 104,972 181,719 millions, as against a gradual reduction in Jan. 1 to Dec. 31, 1915 451,955 31,426 420,529 Jan. 1 to Dec. 31,1916 685,745 155,793 529,952 these holdings by 79 millions during the pre- Jan. 1 to Dec. 31, 1917 553,713 372,171 181,542 Jan. ltoDec.31,1918 61,950 40,848 21,102 ceding four weeks. Loans secured by Gov- Jan. 1 to Dec. 31, 1919 76,534 368,185 1291,651 Jan. 1 to Aug. 10, 1920 152,340 225,719 173,379 ernment war obligations show a steady reduc- Total 2,005,490 1,299,114 706,376 tion, amounting to over 40 millions for the period, loans backed by corporate securities i Excess of exports over imports. declined about 41 millions, while other loans During the same monthly period the net and investments, including commercial loans outward movement of silver was $468,000 as and discounts, increased by about «66 millions. compared with a net inward movement of Total loans and investments of reporting in- $2,235,000 for the month ending July 10. stitutions, accordingly, show a further de- Net exports of silver since August 1, 1914, crease for the period of over 50 millions. were $453,832,000, as may be seen from the Accommodation at the Federal Reserve Banks following exhibit: for reporting member banks increased during the five weeks from 1,953 to 2,086 millions, [In thousands of dollars.] or from 11.8 to 13.6 per cent of the reporting Excess of banks7 total loans and investments. For the Imports. Exports. exports over member banks in New York City an increase imports. in this ratio from 12.1 to 13.6 per cent is Aug. 1 to Dec. 31, 1914 12,129 22,182 10,053 shown. Jan. 1 to Dec. 31, 1915 34,484 53,599 19,115 Jan. 1 to Dec. 31, 1916 32,263 70,595 38,332 Principal changes in the condition of the Jan. 1 to Dec. 31, 1917 53,340 84,131 30,791 Jan. 1 to Dec. 31, 1918 71,376 252,846 181,470 Federal Reserve Banks between July 23 and Jan. 1 to Dec. 31, 1919 89,410 239,021 149,611 Jan. 1 to Aug. 10, 1920 64,011 88,471 24,460 August 20 include an increase of nearly 200 Total 357,013 810,845 453,832 millions in the holdings of discounted bills, the larger share of this increase, viz, 130 millions, Mexico furnished $2,053,000, and Peru and being represented by the increase in the hold- China each $1,000,000 of the $5,494,000 of ings of ordinary commercial paper, as distinct Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

SEPTEMBER, 1920. FEDERAL RESERVE BULLETIN. 911 from paper secured by United States war obli- Banks which continued to apply progressive gations, including Treasury certificates of the discount rates, viz, the banks of Atlanta, more recent issues (so-called war paper). St. Louis, Kansas City, and Dallas, this increase Holdings of purchased acceptances, largely falling about 11 millions short of the increase in bankers' bills, show a further reduction of 32 the total discounts for their member banks. millions, while Treasury certificates on hand Holdings of acceptances purchased by the declined by about 25 millions, this decline repre- Philadelphia, Cleveland, and San Francisco senting largely the amount of special certificates banks from the New York and Chicago banks redeemed by the Government during tho period. show a further increase from 42.5 to 48.9 Substantial increases are shown in the vol- millions. ume of interbank discounting, the total hold- Both Government and members' reserve deings of paper discounted for other Federal posits show some increases, with the conse- Reserve Banks showing an almost continuous quence that net deposits at the close of the periincrease from 123 millions on July 23 to 166 od, 1,718 millions, were about 32 millions larger millions on August 27. The latter amount was than five weeks earlier. Federal Reserve note held exclusively by the Boston and Cleveland circulation shows a further expansion of over banks. Of the total discounts held by the latter 85 millions, while Federal Reserve bank note bank, the share held for other Federal Reserve circulation increased by nearly 11 millions. Banks was slightly larger than the amount of The banks' gold reserves, in consequence of paper held under discount for its own members, further export withdrawals, declined 11.5 milwhile in the case of the Boston Federal Reserve lions, while the loss in total cash reserves, be- Bank this share was about 36 per cent. No cause of further silver deposits by the Governchange is shown in the list of rediscounting ment, was slightly over 6 millions. The banks' institutions, which includes the Federal Reserve reserve ratio shows a gradual decline for the Banks of Richmond, Atlanta, St. Louis, Min- period from 44.4 to 43.2 per cent. neapolis, Kansas City, and Dallas. It is nota- A vacancy occurred in the membership of ble that the total increase of 33 millions in the the Federal Reserve Board on holdings of paper, rediscounted for other Fed- Personnel. August 10, when the unexeral Reserve Banks, is about equal to the aggre- pired term to which Mr. Henry A. Moehlenpah gate increase in rediscounts with other reserve was appointed by the President September 5, institutions shown by the four Federal Reserve 1919, came to an end. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

912 FEDERAL RESERVE BULLETIN. SEPTEMBER, 1920. BUSINESS, INDUSTRY, AND FINANCE, AUGUST, 1920. Continued readjustment of economic and one of shifting credit, but with no substantial business conditions generally has been the change in the volume of bank loans." The characteristic feature of the month of August. number of banks borrowing from the Federal There are already indications that the transi- Reserve Bank has decreased from 380 early tion period is nearing a halt and that an im- last November, when the discount rate was provement of the general situation is in sight. raised, to 313 on August 1 of this year. "Man- Nevertheless, there is still much to be done ufacturers and merchants have at last realized before business, prices, and industry can be re- that the period of constant expansion has garded as having settled down upon a stable about reached the limit of its possibilities." In manufacturing districts Federal Re- As to the price situation, the opinion is ex- 3asis. serve agents report dullness of business accom- pressed that "while some prices were increasing panied by an unusual degree of hesitation on and many remained stable, so large a number the part of middlemen and dealers. This is of important commodities have declined" as the result of reaction among consumers who to indicate that "with further credit inflation have refused to pay excessive prices and of checked natural laws are once more operating." some tendency to unemployment in various In district No. 3 (Philadelphia) prices in directions due to the letting down of demand. textiles, leather, and shoes continue to drop In the agricultural regions the promising crop and the same is true of cloths and clothing, prospects have given a much more hopeful turn while there seems to be some ground for fearing to affairs and have tended to minimize the a recurrence of labor unrest. Slight improvebroader questions of price adjustment, money ment in transportation is encouraging but rates, and industrial unrest. In those parts of inadequate. Retail trade shows a favorable the country the paramount idea is production prospect. upon a large scale accompanied by improve- In district No. 4 (Cleveland) the demand for ment of transportation and better labor con- funds is still heavy, collections are somewhat ditions. Where the processes of distributing variable, but "satisfactory when all circumand financing are more important, the prospect stances are considered," and lake ore movement of betterment is less immediate, although and coal shipments are improving. fundamental conditions are slowly improving In district No. 5 (Richmond) the outstandand the underlying business situation is usually ing feature of the information received by the described as sound. Prices still show a ten- Reserve Bank is " optimism and confidence in dency to fall and for the month of August the the basic soundness of general conditions." Board's index number of wholesale prices has It is nevertheless admittedly hard to specify shown a reduction of 7 points. While differ- definite developments which justify this conences were noted between the indexes of some fidence. Manufacturers are receiving insuffiof the price-reporting agencies early in the cient orders to keep them running steadily in year, there is now practical uniformity, al- all cases, but they are taking a more hopeful though some show greater or more rapid de- view. clines than others. In district No. 6 (Atlanta) improvement in In district No. 1 (Boston) business condi- crop prospects which was so strong a factor tions generally have been characterized by during July has been somewhat offset by " dullness to a degree rather more than usual/' reaction in August. Prices are moving downa fact which is assigned to the " widespread ward. Some wholesalers show reductions in and undoubtedly heavy liquidation on the part sales but retailers report an increase of 16.3 of merchants, * * * chiefly in wearing apparel per cent in net sales over July last year. On lines," who "have to an unprecedented degree the whole, the position is hopeful. cancelled orders placed, resulting finally in In district No. 7 (Chicago) "caution rules in almost universal curtailment of production" business." Retailers have found limits in the by establishments engaged in the industry. popular purchasing power and business is The effect of the situation has been modified "slowing up a little" with the net result "a by the fact that reaction has been so closely waiting attitude." "Dearth of liquid capirestricted to a particular field. Retail mer- tal "is largely responsible for the situation. chants show caution. In district No. 8 (St. Louis) "the volume of In district No. 2 (New York) it is found that trade holds up well as contrasted with the "the period from July 1 to August 20 has been corresponding period last season, and to date Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

SEPTEMBER, 1920. FEDERAL RESERVE BULLETIN. 913 there has been no marked decline in the pur- certainty than heretofore and the outlook has chasing power of the public." There is evi- continued to be in the main favorable. In dence of "more definite and significant steps district No. 9 (Minneapolis) the Federal Rein the direction of readjustment than has been serve Bank's own estimate of crop yield shows observed up to this time." Greater optimism much larger production of wheat, oats, barley, and a greater disposition to economy and and flax than in 1919, with rye only a little becaution are observed both among the public hind last year. There is "a total production of and among merchants. Crops are large and 610,000,000 bushels of small grains as comprices for them are high. pared with 421,000,000 bushels in 1919. The In district No. 9 (Minneapolis) "the slowing corn crop prediction of 245,400,000 bushels up of business which was noted during June on August 1 is about 3,000,000 bushels better has been offset to a considerable extent during than a year ago." In district No. 10 (Kansas July by the rising tide of business confidence." City) the situation is equally favorable. "All However, "stringent money conditions pre- in all, the reports now show that 1920 is one vail" and "liquidation of merchandise has of the best, if not the very best, crop in years." progressed very slowly. Some food prices The bank is disposed to believe that the have fallen. There has been no shortage of Government's estimate of 261,226,000 bushels labor to handle the crop. Transportation of wheat as compared with 301,000,000 bushels conditions are the keystone to the business" last year is too low, while oats will be hardly side of agriculture. less than 200,000,000 bushels and corn has In district No. 10 (Kansas City) business made remarkable progress, the estimated men "see no cause for serious apprehension on yield now being 483,000,000 bushels. Other account of * * * price adjustment, money orops are in excellent condition, especially tightness, or industrial unrest." They have hay. On the Pacific coast the total estimated produced this year the largest all-round crops yield of wheat is a little under 100,000,000 of food products in history and believe that bushels for the district, as compared with improvement of transportation and the rapid 101,000,000 bushels in 1919. Corn, oats, and movement of the goods to the consumer is the hay show good advances over 1918 and 1919. urgent need. The hop crop is much larger than last year and 75 per cent of it has been sold, while the amount In district No. 11 (Dallas) favorable factors of deciduous fruits on the Pacific coast is exinclude "further improvement in the condipected to be greater than was anticipated. tion of crops and ranges; increase in volume In the Pacific Northwest the yield of apples of wholesale and retail trade; increase in is estimated at 25,500 carloads as against 32,600 building activity; increase in farm granaries carloads in 1919. In the Middle West the for the storage of wheat awaiting shipment; seventh district (Chicago) reports that crops and improved movement and supply of freight- "promise well, with indications for a larger cars." As against these desirable factors, production than a year ago in all excepting there is noted "excessive rains in the cotton wheat." belt, conducive to depredations of insects; further inflation of credit; increase in business Accompanying the generally favorable July failures; depression in demand for products outlook for cotton was a decrease in price. of the live-stock industry; and shortage of In district No. 11 (Dallas) the "cotton relabor for harvesting cotton." Trade has sponded wonderfully to the best July weather reacted well from seasonal dullness, but it is that the crop has enjoyed for several years," believed that "the margin of surplus income but subsequent excessive rains are conducive from production this year will not be sufficient to depredations of insects. This is reflected to support any radical expansion of industry in the figures of condition on July 25 as against and commerce" in the year 1920-21. June 25, while the Federal Reserve Bank's In district No. 12 (San Francisco) it is re- own detailed survey of counties as of August 1 ported that "favorable growing conditions seems encouraging. District No. 6 (Atlanta) during the past month have improved the reports the condition of cotton not very differprospects for good crops in all sections ent in July from that of June and states that * * * except some of the dry fanning the boll weevil is now present in practically all sections." Labor is well employed and only of the cotton counties of Georgia. While the one considerable strike is in progress. Har- Florida cotton crop has improved slightly, that vesting is progressing satisfactorily with fairly of Louisiana has deteriorated, but the Missisadequate labor, but car shortage is present. sippi and Tennessee crops show improvement. The agricultural situation has during the As for August developments, "the reports of month of August reached a point at which damage by excessive rains during the first two returns can be counted upon with much more weeks in August have been somewhat discour- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

914 FEDEKAL RESERVE BULLETIN. SEPTEMBER, 1920. aging." The condition of the cotton crop on tially at Minneapolis during July and the August 25, as reported by the Department of early part of August, while at Kansas City Agriculture, was 67.5 per cent—a decline of " there were sensational declines in prices." about 6.6 points from that on July 25/and This is ascribed to " favorable crop reports." somewhat less than the 10-year average. Reports from mills representing 75 per cent of In livestock, district No. 11 (Dallas) reports the flour-producing capacity of the Minnethat ranges are in fine condition, the stock apolis district show operations at 44.6 per itself being "prime" and the situation gener- cent of full capacity during the four weeks ally favorable. In district No. 10 (Kansas ending July 31, as compared with 46.8 per City) fine pasturage has tempted many grow- cent in the four weeks ending July 3 and 40.5 ers and feeders to hold their stock, and car per cent one year ago. Recent trade reports shortage has tended to accentuate the same indicate that sales are still small, although situation. inquiry is fairly large. The movement of agricultural products to An important situation has developed in market is still affording the basis ior more or connection with the marketing of grain. less anxiety and uncertainty. There has been According to district No. 7 (Chicago), "it improvement in railroad conditions, but it will be recalled that last year there was a has been insufficient. In district No. 9 (Min- heavy carry-over of grain, farmers starting neapolis) the agitation for empty cars suit- out with the intention of holding for a few able for grain has brought substantial results, months for a more favorable price level. but not all that had been expected. Receipts They encountered an extremely bad transporof empty grain cars for the five weeks ending tation situation, which prevented the market- July 3 averaged 1,629 cars per week, or 35 per ing of grain when prices did improve. The cent of those ordered sent, while in the four result was rather disastrous, as in many inweeks ending August 1 the weekly average was stances farmers were forced to carry grain 2,427 cars, or 53 per cent. "This improve- for many months against their wish and to ment of 800 cars per week is encouraging, borrow at the banks. Much of this is still although not sufficient to meet the needs of being carried by the banks, either on farms or moving the new crop." Total grain receipts in country elevators. This tends to make the during July, 1920, are reported by the Min- farmer cautious. If cars are obtainable the neapolis Chamber of Commerce as about farmer, as a rule, is not delaying shipment of his 10,000,000 bushels, while shipments were grain to market. Another factor militating 8,061,000 bushels. On the whole, there has against widespread storage of grain is the been an increase of about 10 per cent in the uncertainty as to the future course of the comreceipts and a decrease of about 17 per cent modity markets." in the shipments as compared with June, while Live-stock prices also show a downward there is a decrease of about 5 per cent in the drift for some classes, Minneapolis reporting total receipts and shipments of flour for the substantial reductions in beef prices and a same period. The amount of wheat in terminal moderate reduction in lambs. Receipts of elevators in Minneapolis and Duluth on July cattle and calves at 15 principal markets during 31 was 2,145,000 bushels, as against 912,000 July were 1,188,019 head, as compared with bushels on the corresponding date a year ago. 1,290,265 head during June and 1,527,881 In district No. 10 (Kansas City) the move- head during July, 1919, the respective index ment of grain to the markets of the district numbers being 118, 128, and 152. Receipts of has been in greatly reduced volume as com- hogs amounted to 2,115,639 head during July, pared with a year ago, notwithstanding larger corresponding to an index number of 92, as crops. During July, 1919, receipts of grain compared with 2,746,390 head during June and flour at Kansas City were 13,841,550 and 2,411,539 head during July, 1919, the rebushels, but for July, 1920, 6,770,250 bushels. spective index numbers being 125 and 110. Shipments in July, 1919, were 3,132,000 bush- Receipts of sheep for July were 1,301,458 els and in July, 1920, 4,498,000 bushels. head, as compared with 1,006,528 head during Figures of July receipts and shipments at June and 1,558,767 head during July, 1919, Omaha, St. Joseph, Wichita, and Oklahoma the respective index numbers being 95, 74, City were less than a year ago by 40 to 60 per and 114. District No. 10 (Kansas City) cent, due to the car shortage. It is now reports that " the July movement of live stock thought that it would be better for the grower to the six markets of this district was 8 per to provide storage for himself and to dis- cent less in volume than in June and 23.5 tribute the marketing of grain over a longer per cent less than in July, 1919. A total of period. Grain markets during the month 1,459,891 animals were received at the marnave been active. Prices declined substan- kets during the month, as against 1,586,193 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

SEPTEMBER, 1920. FEDERAL RESERVE BULLETIN. 915 in the previous month and 1,909,890 in the Lake ore shipments from the Superior region corresponding month last year. A large part in July were 9,638,606 tons, bringing the total of the losses in receipts was on hogs. to August 1 to 26,079,111 tons, which compares The heavy declines indicated, especially in with 25,181,848 tons on the corresponding date the movement of cattle, calves, and sheep, are in 1919, and 26,608,933 tons in 1918. The generally attributed to the smaller movement 1918 tonnage is that which the producers have from areas affected by the drought at this time set out to duplicate during the present season, last year. and it is shown that they are only slightly The iron and steel situation during the below their goal. month has not materially changed. Railroad Congestion on the railroads, which was the conditions are somewhat better, but advances source of so much anxiety and difficulty during in freight rates have introduced a new factor the earlier part of the summer, is gradually into the price prospects. Pig iron has ad- yielding to special effort to relieve it. District vanced during the past few weeks and Besse- No. 4 (Cleveland) reports that the outlook mer iron, as well as other products, has also in the lake trade is a little better than a risen. The movement of iron and steel from month ago. The coal movement has shown a the mills and furnaces has continued on the steady gain since the recent orders of the Interincrease and the leading producer in the Pitts- state Commerce Commission. In district burgh district has reduced its accumulations No. 3 (Philadelphia) " moderate improvement by about 65,000 tons. The trend toward the * * * has taken place during the past casing up of congestion at the works is more month. * * * Cars are moving a little pronounced in some cases than in others. In more freely to destinations." There has been district No. 3 (Philadelphia) iron and steel no reduction in prices for spot coal. New producers " still suffer seriously from transpor- freight rates are expected to add from 65 to 85 tation inadequacy/' In some lines a slacken- cents a ton to the cost of anthracite to the ing of demand has been noticed. Higher retailer. In district No. 6 (Atlanta) Alabama freight rates are expected to add considerably coal production shows a little improvement, to manufacturing costs. Both in districts but strikes are still on in various fields. Coke No. 3 and No. 4 there is a falling off in the production is below the demand and car shortdaily output of pig iron and the same is true age is still felt. In district No. 4 (Cleveland) of some steel products. In district No. 6 coal movement is showing a steady gain all (Atlanta) "the shortage of freight cars has around. There is still shortage in various parts grown more serious during the past month/' of the country, not for immediate needs but rig iron is piling up in the district and iron as compared with the estimated demand of and steel movements are greatly delayed. coming months. The bituminous output is Consumption of pig iron is holding up well estimated by the Geological Survey as 226,000,and steel mills in the district as a whole are 000 tons for the first half of this year (1920) working at more than 80 per cent of capacity. as compared with 218,000,000 tons in the cor- In spite of the difficulties encountered in the responding period last year. Allowing for imindustry, a hopeful spirit generally prevails. portation and exportation there is an indicated In district No. 3 (Philadelphia), for instance, a balance for domestic consumption of 215,000,large manufacturer whose principal product 000 tons, against 211,000,000 tons last year. is bar iron is optimistic about conditions for Production of bituminous coal for the country the rest of the year, while rails are in strong at large during July amounted to 45,526,500 demand and miscellaneous steel products are tons, as compared with 44,462,500 tons during finding a good market. The unfilled orders of June and 42,698,000 tons during July, 1919, the United States Steel Corporation at the the respective index numbers being 123, 120, close of July were 11,118,468 tons, correspond- and 115. Sporadic labor difficulties in the ing to an index number of 211, as compared coal industry have to some extent retarded with 10,978,817 tons at the close of June, corre- production, but in the main the figures sponding to an index number of 208. Steel show that conditions heretofore have been ingot production during July was 2,802,818 reasonably favorable. The production of antons, as compared with 2,980,690 tons during thracite, however, will be curtailed in conse- June, the respective index numbers being 116 quence of the recent widespread cessation of and 123. Pig iron production during July was work by miners. Production during July 3,067,043 tons, as compared with 3,043,540 amounted to 7,785,000 tons, as compared with tons during June, the respective index num- 7,754,000 tons during June and 7,803,000 tons bers being 132 and 131, although the average during Ju<y, 1919, the index number for all daily output was somewhat less during July. three months being 105. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

916 FEDERAL RESERVE BULLETIN. SEPTEMBER, 1920. In petroleum there is a growth in produc- General manufacturing has varied widely in tion in Kansas, Oklahoma, Wyoming, and different parts of the country during the Colorado. For the two first-named States months both of July and August as a result there is an increase during the first seven of sporadic depression and suspension of work, months of 1920 as compared with the same coupled with difficulties of various kinds in period in 1919 from 64,189,000 barrels to connection with the continuation of produc- 79,360,000 barrels. Developmental operations tion. There is still depression in woolens and in the Oklahoma field, including Kansas, cottons, knit goods and underwear, wearing Oklahoma, and Wyoming, have been very apparel, shoes, leather, and various other satisfactory during July. The stock of oil in articles. Resumption of activity immediately storage in district No. 10 (Kansas City) on after Labor Day is promised in a number of July 1, 1920, was 60,712,000 barrels as against sections and it is held that there is some indi- 61,604,000 barrels on January 1. On the cation that retailers' stocks are becoming so Pacific coast the daily production during reduced that active buying must soon be July averaged 279,000 barrels as compared resumed. District No. 1 (Boston) reports with 273,000 in June. Stored stocks were that tanneries in the district are still closed 24,405,000 barrels on July 31, a decrease of or operating up to about a 50 per cent basis. 964,150 barrels during the month. Shortage While there has been some resumption of shoe of gasoline continues to be general on the manufacturing, numerous large concerns are Pacific coast, while in district No. 10 (Kansas still either wholly closed down or operating City) the summer demand is at its height and on short time and they are purchasing little shipments to the Pacific coast are being made leather. Prices for side leathers are off 10 to from the mid-continent and Rocky Mountain 13 per cent from last month, but still 50 to 100 fields. The market for petroleum during the per cent higher than in 1913-14. Hides are month of July was steady and quiet, with the accumulating. District No. 5 (Richmond) price of crude oil generally subject to little reports that shoes are moving from manufacchange. In district No. 11 (Dallas) drilling turer to retailer slowly, while buyers are holding results improved during July and for the district off in the hope of reductions. Leather has as a whole 868 wells were completed as com- weakened, but there is little prospect of the pared with 650 in June. The daily average saving reaching the consumer for a good output during July was 375,000 barrels, a while, owing to the length of time required decrease of 7,500 from June. The outlook in in shoe production. In district No. 7 (Chicago) the Texas field is regarded as very promising. first hands are holding leather and are finding In metal mining there was a curtailment ot more than usual difficulty in financing it. production at the opening of July with regard Cancellations are still active. Sales are 50 to zinc and lead, but later there was a partial per cent off from 1919 for the first seven months resumption of work, resulting in an average of 1920. The automobile demand for leather weekly output of about 10,000 tons at the end "is the only really rosy spot in the picture." of the month. Curtailment and rearrangement In district No. 3 (Philadelphia) shoe manuof production has helped to adjust the labor facturing plants have been shut down or runsituation. There has developed a relative ning at minimum capacity, but have now reduction of output, but a deficiency of cars resumed operations preparing samples. Orders has continued to be marked, even as compared are slow in being placed. The public has been with the supply of ores on hand. Cars in- refraining from purchasing high-priced shoes tended for other products are now being used but has bought freely at reductions. Stagto ship ores. The price of zinc ores has in- nation still exists in leather. Few tanneries creased from $45 at the opening of July to are operating and the transportation situation $47.50 for 60 per cent concentrates. Lead is in part blamed. From district No. 8 (St. ore prices also showed a decided advance for Louis) it is reported that business in shoes is the month from $90 to $100 per ton on 80 steady, prices are definitely lower, but the per cent lead. The average output has fallen decline is not as marked as had been looked off in the Colorado metal mining district. for (except in a few special grades), and that Production reported during July by reduction the country merchants are in a somewhat plants in the Cripple Creek district totaled more steady frame of mind. 38,222 tons, or a gross value of $468,568. As for wool and woolen goods, district No. 1 Some indications of improvement in mining (Boston) reports that the situation in the wool activity are reported. With the exception of industry is difficult to diagnose, the Boston zinc, however, recent trade reports indicate market being dull, although the supply, extreme quiet in these industries, little in- especially of the finer grades, available for use terest being shown by consumers. is not excessive, if production should become Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

917 SEPTEMBER, 1920. FEDERAL RESERVE BULLETIN. normal. Woolen mills in New England during month, and there is a feeling among some the month of August were either closed or run- wholesalers that retailers might well sell ning on part time. Returned goods are felt to cheaper and still make a good profit. be insufficient to meet the public demand when In other manufacturing lines there is more it revives. "Briefly, therefore, the whole wool or less difference of condition. District No. situation is one of waiting and caution, with 3 (Philadelphia) reports activity in broad silks, hand-to-mouth buying on the part of the although the buying movement was not general manufacturer." In district No. 3 (Philadel- and few silk mills continued open. In paper phia) " there is an unprecedented situation/' and twine district No. 1 (Boston) finds that with "an absence of activity such as has never there is still difficulty among dealers in procurbeen known." "Such is the apathy shown in ing sufficient supplies to meet the demands of the market that samples for spring (1921) the trade. Stocks are believed to be small. materials which in normal times would have Prices continue from 100 to 400 per cent higher been displayed in July have not been prepared (wholesale) than in prewar times and are still in numerous instances." In the clothing tending upward. District No. 3 (Philadelphia) trade, district No. 5 (Richmond) states that states that production of paper for the first six "clothing manufacturers report dull business, months of 1920 exceeded that of the same period with a decided reluctance on the part of the in 1919 by about 9 per cent. Prices have adretailer to enter into further contracts." A vanced in most grades of paper. Hope for a change in the demands of customers is noted, new source of supply of wood pulp from Alaska and it is believed that lower-priced goods is entertained in various quarters. The outmade of coarser wool may figure more largely look is said to be encouraging in drugs and during the coming season. District No. 7 chemicals, although the inactivity of the (Chicago) finds that "fine wools are scarce and textile and tanning industries has reacted coarse wools are a drug on the market." There upon the trade. There is a plentiful supply of has been "a flood of cancellations, slow pay- most raw materials for drug making, but ment for goods already delivered, and a general American crude drugs are difficult to obtain. slowing down of the apparel industries." Sales are far in advance of this time last year. In cottons district No. 1 (Boston) reports In rubber there is some anxiety. District No. that "dullness in cotton this month is fully as 3 (Philadelphia) reports that there is "a depronounced as during * * * June and creasing demand for tires." No difficulty exists July and dealers report only buying by the in getting raw materials. mills in small lines for immediate require- In lumber and building material the situaments." Nevertheless, there has not been as tion is also variable. In some districts the general curtailment in production as had been expectation that heavy buying would develop anticipated. According to United States cot- in anticipation of higher freight rates has been ton statistics, cotton held in mills in the dis- disappointed. Stocks are small in numerous trict for July was 660,893 bales, while the quarters. In district No. 6 (Atlanta) the amount consumed during July was 198,233 bales. lumber market is still dominated by the Prices for combed and carded yarns were lower transportation situation. Curtailment of proat the middle of August than earlier, and "con- duction is becoming more general, but apart sumers of spot yarn have found the supply so from a continuous scarcity of cars the immeplentiful that they have been in no mood to diate outlook is satisfactory. In the Middle buy in advance of current needs." In district West high costs of lumber, millwork, and No. 3 (Philadelphia) further curtailment of other materials have seriously retarded buildoperations has been noted among cotton-yarn ing. In district No. 10 (Kansas City) lumber manufacturers. Spinners are accumulating and material markets have been inactive, with large stores of finished products. The acute lowered demand due to unsatisfactory dissituation of the cotton-yarn industry is at- tribution. In New England, district No. 1 tributed to the restriction of credit by the (Boston), dwelling house construction is still banks, although the policy of the banks is backward, partly due to the increased cost of believed by larger manufacturers to be correct. material and labor. On the Pacific coast, In knit goods the deadlock between underwear district No. 12 (San Francisco), car shortage manufacturers and jobbers still continues— restricts lumbering operations and 20 per cent jobbers waiting for lower prices while manu- of the mills are closed, while those that are runfacturers make no attempt to sell their product. ning are operating at only 75 per cent capacity. The situation in hosiery is but little better, For the last four weeks in July reports from 122 while in underwear the only buying demand is mills operating on Douglas fir show production for export. In district No. 1 (Boston) small 31 per cent below normal as compared with wares are reported lower in price than last 7.5 per cent during the preceding four weeks. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

918 FEDERAL RESERVE BULLETIN. SEPTEMBER, 1920. Unshipped orders amounted to 330,000,000 32 per cent. Wholesale grocery firms reporting feet as compared with 343,000,000 feet. Build- show only slight increases in sales during the ing, however, is active. In district No. 9 month, in some instances recording decreases, (Minneapolis) lumber cut and shipped by pro- while the same is true for hardware and shoe ducers increased about 50 per cent during the lines. In the San Francisco district returns month. While average orders on hand by based on sales of 23 wholesale hardware consouthern pine producers decreased from 502,- cerns indicate average declines of 7.7 per cent 927,000 feet for July 9 to 389,850,000 feet for as compared with June, while 13 wholesale shoe July 30, production during the same period establishments showed reductions of 10 per cent shows an increase, the average figure for the in volume of sales. Reports uniformly testify, week ending July 30 being 468,983,000 feet, however, to the fact that hardware sales have which is about 75 per cent of normal. averaged much above those for July a year ago, The labor situation is reported generally while the limited data available for wholesale favorable. In district No. 1 (Boston) employ- shoe houses shows that in this line the volume of ment in the textile industries is somewhat de- sales is below that of last year. Downward pressed, and the same is true of the shoe facto- tendencies in wholesale prices are noted for ries, certain of which, however, have started groceries, dry goods, and shoes, but no evidence up again, but with, production curtailed. of weakening is found in wholesale hardware or Returns from public employment offices show furniture lines. It is probably significant that that the number of positions reported filled so important a jobbing center as St. Louis reduring July suffered a loss of 34 per cent from ports good buying activity on the part of retail- June of this year and 34 per cent from July of ers to meet heavy current needs, although here, last year. In spite of curtailment of output as elsewhere, there is an indisposition to make and reduction in number of operations in cer- commitments for the future. tain industries, the report of the New York The situation in the retail trade has not State Industrial Commission shows a decrease changed in any essential way since last month. of only one-half of 1 per cent between June and The volume of sales continues moderately large. July in number of factory workers. Since the In all districts sales in terms of value are greater report of district No. 2 was received, there has than those during the same month last year. been a strike on a leading traction company In many districts sales of essential commodities in New York City. District No. 7 (Chicago) in terms of physical amounts are said to be fully reports the labor situation "distinctly better, as great and in some cases to exceed those durthough there is some shortage.77 On the Pacific ing the same period last year. These results, coast "the supply of labor about equals however, have to a large extent been accomdemand throughout the district." plished by means of reduction sales. The de- The volume of trade, both wholesale and mand for luxuries and semiluxuries has everyretail, is reviewed as usual in the Board's special where notably fallen off. Merchants are mainreports on that topic. Generally speaking, taining an attitude of caution in replenishing: retail trade is fairly satisfactory. The Board's their stocks, apparently waiting for prices to systematic report on wholesale trade conditions reach a position of greater stabuity. has not been extended throughout all Federal Financially the month has been quiet. In- Reserve districts. The data at hand, however, terest and discount rates have continued high, indicate an interesting and, on the whole, with general scarcity of funds. The reserve promising situation, frice reductions have position of the Federal Reserve Banks has been evidently led to a revival of buying activity on well maintained. The Federal Reserve Bank the part of retailers in the South and West. of Boston reports that reserve conditions are Reports from wholesale dry goods firms in the improving and that the expected stringency Atlanta district show average increases in sales in the money market usual during the fall of 79*1 per cent in July as compared with June. months should not be greater than last year. Nevertheless, the sales of these same firms were The bill market for bankers' acceptances in still 26.6 per cent below the figures for July a New York has continued active, with supply year ago—a vivid illustration of the extent to more plentiful toward the end of the period which buying activity had fallen off in preced- and demand fairly well sustained. There is ing months. The Dallas reports also indicate evidence that investors are taking up Liberty increased activity in wholesale dry goods, al- bonds and Victory notes for permanent abthough sales are slightly below July, 1919. sorption. Sales of new securities continue to San Francisco reports show increases of about fall off and financial operations are postponed one-third in value of sales over the preceding whenever possible because of the difficulties month for 12 wholesale dry goods houses, while arising out of high rates of interest. There is the sales exceeded those for a year ago by nearly some slowing down of collections and this has Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

SEPTEMBER, 1920. FEDERAL RESERVE BULLETIN. 919 been an unfavorable element in the financial able increase in their accommodations to memposition of some lines of business. On the ber banks. An increased strain has been imwhole it is believed in most districts that more posed upon the present situation as the result favorable financial conditions are in sight and of active harvesting. From the grain disthat merchants and manufacturers, while tricts (Minneapolis) it is reported that moderdrawing heavily upon the resources of the ate liquidation of loans was made by customers banks, are doing so primarily for productive during July, although an actual calculation of purposes and not for speculative or nonpro- the extent of it is said to be difficult to make. ductive objects. Liquidation has been carried Money rates have remained firm, with little still further in the stock market and prices change. have reached in New York levels lower than The collection situation has been the subthose of February or May. The news of the ject of a special inquiry during the past month higher railroad-rate decision caused only a and the results of it are presented elsewhere. temporary recovery. Call money rates have In a general way, the situation is fairly generally been moderate, ranging from 7 to 9 favorable, with collections slowing down in a per cent practically throughout the period. number of instances due to desire on the part Time money has been scarce and the charge of people to conserve their funds in order to for it has been high. avoid borrowing at high rates from banks, as On the Pacific coast member-bank condi- well as to lack of funds in other cases, due to tions are not far from stable. Interest and slow movement of commodities. Some increase discount rates, however, have shown some in commercial failures is noted practically tendency to harden during the past month. throughout the country, but there are many lines Some of the southern banks show a consider- in which the change, if any, has been small. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

920 FEDERAL RESERVE BULLETIN. SEPTEMBER. li)20. SPECIAL REPORTS ON BUSINESS CONDITIONS. THE MOVEMENT OF LOANS. DISTRICT NO. 2 (NEW YORK). The movement of loans in the several Fed- The period from July 1 to August 20 has eral Reserve districts shows considerable vari- been one of shifting credit, but of no substanation. Demands are reported to be heavy on tial change in the volume of bank loans. the whole, with conditions virtually unchanged This, however, may be considered as equivafrom the preceding month. District No. 5 lent to a slight decrease in loans, for loans (Richmond!) and district No. 11 (Dallas) report normally increase somewhat during July and recent expansion in the loans of member August in anticipation of autumn demands. banks, but district No. 9 (Minneapolis) and Since July 1 the deposits of the New York district No. 10 (Kansas City) state ^ that City banks have decreased $147,000,000 and moderate liquidation of loans has begun*. In the Federal Reserve Bank of New York has districts No. 2 (New York) and No. 3 (Phila- lost $61,000,000 of gold through the gold delphia) very little change in the volume of settlement fund to other districts. The loss bank loans is reported, while in district No. 1 of deposits is due in part to reductions of out- (Boston) causes locally operative have brought of-town bank balances, but more largely to about a liquidation of bank loans in Boston the maintenance of smaller balances by comproper, with some slight increases in other parts mercial customers, either to avoid further of the district. borrowing or in anticipation of having to borrow less during the coming months. Grad- DISTRICT NO. 1 (BOSTON). ual liquidation in the prices of securities has lessened the demand for call money, resulting Member banks in Boston show a $12,000,000 in slightly lower rates, but otherwise the decline in loans and investments from July 16 credit situation has remained unchanged durto August 13; on the latter date these stood ing the past 30 days. at $775,000,000 against $787,000,000 four weeks earlier. The decline was distributed among DISTRICT NO. 3 (PHILADELPHIA). all types of loans and investments, the reduction in loans secured by stocks and bonds Banks in the third district show little change being some $5,000,000, in certificates of in- in condition during the past month. If anydebtedness some $4,000,000, and in commer- thing, there has been a slight increase in loans cial loans and investments almost $2,000,000. and deposits. Philadelphia Clearing House In comparison with the decline in loans and members shared in the increase in loans, but investments there has been practically no they are still considerably below the figure^ change in either demand deposits or time de- which they reported earlier in the year. posits, while such change as has occurred has Commercial paper dealers feel that some firms been due to the reduction of Government at least are adjusting their finances to the deposits. Loans from the Federal Reserve present credit situation and are offering paper Bank have been reduced some $12,000,000. in smaller volume. The general supply is Member banks in New Haven, Hartford, Spring- sufficient however to care for the small demand field, and Providence do not show any decrease from the banks. It is said that greater disin loans, there being in fact a slight increase, less crimination is being shown in purchases and than $500,000, while deposits remain the same as that first-class paper only is wanted by many on July 16. Loans with the Federal Reserve institutions. The average rate is unchanged Bank/ however, have increased slightly, due at 8 per cent for good names. undoubtedly to the withdrawal of Government deposits in these institutions. Notwithstanding DISTRICT NO. 4 (CLEVELAND). this increase in loans in the Federal Reserve Bank, the fact stands forth that 9 out of the 24 There is no slackening in the demand for member banks in these cities on August 13 funds. This may be said to be especially true were not borrowing at all from the Federal of the rural banks, where efforts are being Reserve Bank of Boston. made to finance the farmer. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

SEPTEMBER, 1920. FEDERAL RESERVE BULLETIN. 921 The manufacturing districts report no change DISTRICT NO. 8 (ST. LOUIS). in credit conditions. The principal reasons No marked changes in financial conditions in given for making new loans and renewing old the district occurred during the past month. ones are "large inventories occasioned by the There is a continued broad demand for money necessity of making larger purchases than and credits, with the call from the country usual to insure adequate supplies of goods and particularly urgent. There has been some raw materials, large quantities of finished goods liquidation in loans, and during the past week because of inadequate transportation facilities, or ten days certain country banks have slightly cancellations of orders, and slow collections." reduced their obligations. The slump in de- In some sections it is reported that customposits, however, continues. Sharp price reers' balances in banks are smaller than ever ductions in some staples have had a tendency before, indicating a probability that more and to promote liquidation of accumulated stocks. more money is being converted into inventory Thus far the massive requirements for crop and manufactured goods, now known as financing have been met, and requirements of "frozen capital." The liquidation of these essential business are being well cared for. goods depends upon how soon traffic condi- Consensus of opinion among bankers is that tions may be restored to the point where they with a continuance of the recent conservative may find their way to market. policy in the matter of apportioning credits and the discouragement of speculaattiioonr in all DISTRICT NO. 5 (RICHMOND). forms, general business can be carried forward without serious disturbance until the return Condition reports received from 82 member flow of money begins in the fall. Efforts on banks show an increase in outstanding loans the part of railroads to increase transportation and investments amounting to $7,311,000 in 5 efficiency and expedite the crop movement weeks, totals for week ending August 6 being are expected to be reflected shortly in the $490,261,000 as against $482,950,000 for the release of enormous credits heretofore tied week ending July 2, 1920. This would cerup in delayed freight. To the South, where tainly seem to prove that no sudden and disasthe old crop of cotton has not been sold, banks trous calling oi loans is being done by member have been obliged to carry a heavy burden, banks, as is sometimes charged. During the 5 but withal financing of the growing crop has weeks deposits increased $15,087,000 in the been adequately handled. Rates are high, same 82 banks. Banks are meeting all actual and present indications are that there will be needs, and there is little evidence of serious little change. credit strain except in speculative fields or in cases in which corporations have attempted to Commercial paper houses report extreme expand too rapidly. Railway conditions have dullness in their line, July and August business not improved sufficiently to release very much being well under that of preceding seasons. frozen credit now tied up in raw materials and Country banks are buying sparingly, and the finished goods for which transportation can not large city institutions are too closely pushed be secured. to supply regular and routine demands of their customers to invest in paper of this class. Some paper has sold fractionally above 8 per DISTRICT NO. 7 (CHICAGO). cent, but the prevailing rate is still 8 per cent, Ordinarily credit demand is heaviest in the with no names, however good, obtaining confall of the year, because of agricultural neces- cessions under that figure. sity, and the present year is no exception. DISTRICT NO. 9 (MINNEAPOLIS). Considerable attention has been devoted to the possible effect of new crop requirements at the Reports received from 35 selected member banks because of their already loaned-up con- banks in the larger cities in this district, and dition. There is a wide divergence of opinion which comprise about 75 per cent of the lendamong bankers as to the probable demands. ing operations of the Federal Reserve Bank, Both the country elevator operators and the indicate that a moderate liquidation of loans farmers are clearing bins of any carry-over was made by customers during the month of from the 1919 crop where possible, to make July. These member banks reduced loans to way for the new yield, but this is a slow proc- customers by $5,000,000 between July 2 and ess. Credit frozen to grain carried over from August 6, and this was effected by a decrease last year will be released for new usage with in customers' deposits amounting to $4,000,000. the marketing of old grain, which is now ac- These member banks liquidated loans at the tively under way with an added supply of cars Federal Reserve Bank amounting to $4,900,000, in the grain belt. and this was effected in part by sales of Gov- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

922 FEDERAL RESERVE BULLETIN. SEPTEMBER, 1920. ernment securities made by these banks COLLECTION CONDITIONS. amounting to $2,400,000. In connection with the preparation of the Between July 2 and August 6 the Federal report on business conditions in the several Reserve Bank collected $4,900,000 from the Federal Reserve districts during August, special larger banks and loaned about $3,900,000 to attention was given to the collection situation, other member banks, thereby realizing a net and information was obtained from a large reduction of accommodation to member banks number of business houses as to their experiin this district of $1,000,000. ence since the opening of the present year. Considerable differences appear as between the DISTRICT NO. 10 (KANSAS CITY). several districts, and as between different There are many evidences that liquidation lines of industry. Where the decline (with of loans has set in, throughout the wheat sec- relation to volume of business done) has tions in particular, which may be expected to occurred, it commenced more largely in the become heavier in September. Demand for second quarter, although in a relatively small loans continues strong at the reserve cities number of cases it was apparent about the and rates remain firm. There is noticeable a opening of the year. In certain cases the slight improvement in the car situation, and decline is not found until about July, while should this improvement continue there is some houses report improvement in collections every reason to expect that this district will during August. In the agricultural districts rapidly regain its financial position. it is in general too early in the year to accurately judge conditions, as dependence is placed on the crops to supply funds for the liquidation of DISTRICT NO. 11 (DALLAS). accounts, but on the whole relatively little or Notwithstanding the generally auspicious no decline in collections is reported. In the outlook throughout the district, the present manufacturing districts, on the other hand, inflation of credit makes it certain that the collections have declined broadly in those margin of surplus income from production this industries, such as tanning, textiles and auto year will not be sufficient to support any radical tires, which have witnessed a decline in sales, expansion of industry and commerce in the form while in general they have been well mainof new enterprises in 1921. Bank loans have tained in other industries, such as hardware been steadily mounting during the past six and drugs and chemicals, in which activity has months, until now the Dallas Federal Keserve continued. The manner in which the slowing Bank's loans to member banks are two-thirds up is manifested also varies with the industry larger than they were a year ago, and the district in question. Where a high percentage of cash is drawing extensively upon the surplus funds of discounters is normally found, this decrease will other sections. Liquidation during the coming naturally occur in the percentage of those taking fall months, therefore, should be and is ex- the discount, rather than in the percentage of pected to be heavy, except in those sections accounts running past due. On the whole, from where cotton is being heavily damaged by certain districts, such as No. 3 (Philadelphia), it weevils, worms, or grasshoppers, and in certain is reported that the first mentioned has been parts of the extreme western section of the the particular form in which the slowing up has district where weather and market conditions been noted, while in district No. 4 (Cleveland) have not been favorable to the cattle and it is stated that it was also the earliest indicasheep industry. Cotton being the district's tion of the slowing up, while "as the credit chief reliance for the payment of its obligations, pinch became more apparent the falling off the extent of general liquidation this fall will showed noticeably in the percentage of acdepend largely upon (1) the average price counts running past due." In district No. 12 commanded by the 1920 crop, and (2) the (San Francisco) the falling off has been equally growers' ability to hold in check during the pronounced in the two ways. next few weeks the ravages of insects resulting Turning to the agricultural districts, in from recent excessive rains. district No. 9 (Minneapolis) while "October Condition reports of reserve city banks as 1st is the 'big pay day/ and July and August of July 30 reflected the increased strain im- are slack months with few collections due, posed upon the present credit situation by the collection conditions on the whole are good," larger demands of industry and agriculture and there has been no increase in bad debts. pending the harvesting of crops. Loans in- "Business has been dull in many lines," with creased $6,260,000 over the total reported "very little overstocking and consequent ina- June 25, and bills payable with Federal Reserve bility to settle obligations promptly." From Bank were larger by $10,235,000. district No. 10 (Kansas City) it is stated that Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

SEPTEMBER, 1920. FEDERAL RESERVE BULLETIN. 923 with the exception of "some sections where piano trade reports continued good payments." car shortage has interfered with the movement In district No. 12 (San Francisco) about 50 per of grain, and comparatively few accounts are cent of the reporting firms have experienced no running overdue, merchants report that they decline in collections. have not noted any decline in collections since Turning to individual industries, wholesale the beginning of this year." Turning to the grocers almost universally report collections nor- South, in district No. 5 (Richmond) "collection mal or good. The status of collections is reflected conditions are not far from normal." In in the following table, which gives average perdistrict No. 11 (Dallas), while general liquida- centages since January 1, 1920, of outstandtion in the fall will depend upon the cotton ings on the first of each month to last month's crop, "July witnessed an appreciable slowing sales, as reported by wholesale grocers' assoup of collections as compared with the situation ciations, in various sections of the country. earlier in the summer, but a falling off in collec- Caution is necessary, however,. in the use of tions at this season of the year is a normal oc- these figures, as the averages are unweighted, currence, as payments are usually at a low ebb and moreover the number and identity of just prior to the harvesting of the cotton crop." reporting firms changes somewhat from month In district No. 6 (Atlanta) " collections are not to month. as good as for the past month or two. Increas- Average collection percentages. ing numbers of accounts are being allowed to run past due, and collections are harder to m h h tu a a • a r s v I i k n e n e b g . b s e " o p e e m e n la n e y m s a o f o a f f e s l t c t a h t r e n g e d o e d t r i t i c o s r e o t r a l a i e b c , l g t e s c r , o e i a l n l a t e e c c w r c t o i h o e r i d x n ch i s t n e a g n m p t. p a t e n o a u T r t f h h a t i c o e s - Y N o e r w k. P v w D N a s J s a e a e e y e n e n n r y r l d l w i a - e - n , a - . - , Ohio. n I o ll i i s - . M ig i a c n h . - I n b M a o t N k e r n a w a s a i e . d o n s , - a - - - , . h O o k m la a - . C n fo a ia r l - i . report from District No. 3 (Philadelphia), "in those lines which have been affected by de- 1920. Jan l. 105.5 93.0 81.9 68.9 98.2 104.0 104.5 clining business demand," certain lines show- Feb.l 94.7 93.4 83.8 77.4 101.6 109.0 97.5 ing little if any change. In district No. 4 Mar. 1 113.1 105.8 85.5 87.5 101.3 106.0 112.0 Apr.l 95.2 92.8 79.0 70.9 89.7 99.9 99.6 (Cleveland) it is believed that the slow move- May 1 100.9 92.3 76.9 82.7 70.7 88.6 99.8 96.1 ment of freight may have " contributed more June 1 93.3 89.3 78.6 79.2 74.6 92.7 105.0 95.0 July 1 95.7 86.0 72.6 79.8 65.9 86.0 106.0 101.9 to the slowing up of collections than has the Aug.l 85.9 75.0 78.5 67.9 88.0 107.0 100.2 difficulty in securing bank accommodation." It is stated from that district that " while the While this is the general situation, from general situation as regards collections may be district No. 4 (Cleveland) it is stated that said to be satisfactory when all circumstances " wholesale grocers report that some of their are considered, the month of June appears to heaviest buyers are slow in making remithave been the turning point in nearly all lines tances, and are showing a tendency to becomof business. Collections from the first of the ing slightly delinquent." The wholesale groyear through the month of May were reported cers at this time of the year are receiving many as normal, for the most part, but in some lines goods for the fall and winter trade, requiring the slowing up developed as early as February. funds in excess of those received from collec- Since June collection resistance has increased, tions, and certain of them are thus slow in although a few firms note an improvement in paying current bills. In district No. 6 (At- August." From district No 7 (Chicago), it is lanta) certain leading firms report a falling off stated that in nearly all " branches of trade in collections, stating that it commenced in there is manifested a more general tendency on June, and was especially marked with supply the part of the purchasers of goods to ignore merchants in small towns. A leading eastern discounts or ask extensions. Some of this is canner reports that collections have been more traceable to the usual seasonal let-up, but not difficult during the last six months, but especall of it can be so explained." Most houses7 ially since June 1. A leading flour miller notes collections, however, are reported "good or a falling off in collections of bills on open normal." In district No. 2 (New York) account, commencing with February, and "delayed collections are reported generally most pronounced in that month, with June throughout the millinery, fur manufacturing, the next most noticeable month, but collecclothing, men's furnishing, and leather trades" tions are now again normal. The slump ocas well as in textiles. "Prompt collections are curred on sales to the small baker with little reported in the drug jobbing, crockery, glass- capital, and is ascribed to'" overanxiety of millware, hardware, and cutlery trades, while the ing salesmen to increase business after war-time Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

924 FEDERAL RESERVE BULLETIN. SEPTEMBER,, 1920, regulations were removed." Ninety per cent of but who now take full time. Tanners in the product of the milling industry, however, is district No. 4 (Cleveland) "generally report sold on documented drafts, and the opinion is collections as very satisfactory, although a expressed that these are probably out five or slowing up is noted, particularly on the part ten days longer now than a few months ago. of those who are always inclined to be dila- Flour manufacturers' collections in district tory." Shoe manufacturers in this district No. 8 (St. Louis) "are not uniformly satis- report a noticeable decrease in the percentage factory." of discounters, an increase in the number of Among lines in which collections have been accounts permitted to run past due, and well maintained are also drugs and chemicals, numerous requests for extension of open tobacco, and hardware. In district No. 3 accounts. In district No. 3 (Philadelphia), a (Philadelphia), however, "a slight retardation decline is reported by certain shoe manufacin drugs and chemicals collections is noted," turers, commencing with May or June. Shoe but in district No. 8 (St. Louis) "in drugs and manufacturers in district No. 7 (Chicago) chemicals, and hardware, and in metal goods generally report a decrease, commencing in generally, the recent upward pace has been practically all cases in May and given by some well maintained." Hardware manufacturers as most pronounced in June, by others as in district NT>. 4 (Cleveland) report a decline equally pronounced in May and July. The in collections beginning with July, being most decrease is noted in accounts running past due. noticeable during August, and found especially Shoe wholesalers in district No. 6 (Atlanta) in in accounts running past due. In the steel general report a decrease commencing in April, industry collections are reported as generally May, or June, and most pronounced in most satisfactory with the exception of the auto- cases in July, being most noticeable in past mobile trade. No decline is reported in general due accounts. One remarks that "slowness by hardware manufacturers in district No. 7 seemed rather general, but more pronounced (Chicago). Several hardware jobbers in district in country and small town accounts," while No. 6 (Atlanta) state that they have expe- several report greater effort required in making rienced no decline in collections, one a decline collections. only in July, and one reports that while Cotton yarn collections in district No. 3 " fairly good, collections are not what they (Philadelphia) are reported extremely poor should be," and attributes this to advance in and requests for extensions are common. prices, stating that "the country merchant Some leading silk manufacturers report a decan not make enough on the turnover to take crease in collections, most marked on the whole care of the advance that he has to put in the since about June. In the various branches of replacement of goods." Agricultural imple- the wool industry a slowing up is reported, and ment manufacturers report that collections in is noted hj certain houses in district No. 3 general are slower, although the time of com- (Philadelphia) as occurring more largely in the mencement is given variously as from March second quarter or in July. Hosiery and underto July, and one states merely that collections wear manufacturers in this district report a are "much slower than they were a year ago." slowing up of collections, remarked more par- Local dealers generally are stated to have been ticularly during June and July. A leading unable to finance themselves at their local underwear manufacturer in district No. 9 banks, and the manufacturer has been under (Minneapolis) shows a percentage of past due the necessity of extending short-time credit. paper to total volume this year of 3 per cent as Prominent among lines which have been against 1.2 per cent in 1919, this being credited adversely affected are leather, textiles, and to the small country merchant of the Middle auto tires. In the tanning industry the situa- West, and rather to dislike for bookwork than tion is rather mixed. The volume of business to financial insecurity. Comparing the same is small and a considerable number of firms, two periods, however, the percentage of disowing to careful selection of purchasers, report counters shows an increase of 4.5 per cent. no decrease in collections. In district No. 3 Textile collections in district No. 4 (Cleveland) (Philadelphia) the latter was the case with were extremely good until the end of May, there about one-half the number of tanners report- being much anticipation, but there has been a ing, the others showing a decline commencing noticeable slowing up since June 30 and a variously in March, April, and June and about practical elimination of anticipation. A recent July 1, being given in several cases as most u investigation by one of the New York credit pronounced in June. Several state that the agencies indicates that about 20 per cent of decrease is most pronounced in the percentage accounts of the smaller concerns are overdue. of those who formerly discounted their bills While the accounts of the larger textile houses Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

SEPTEMBER, 1920. FEDEKAL RESERVE BULLETIN. 925 are in somewhat better condition, it was esti- In the rubber tire industry it is reported from mated that 12 to 15 per cent of these pay- district No. 4 (Cleveland) that "a slow decline ments were also delayed. While this is a very is noted beginning in January." Not until high percentage of slow accounts, the general May 10 (and June 10 in the northern part of opinion of the trade looks for some gradual the country), at which time bills for the heavy improvement in payments as prices steady.;; deliveries during the winter months are due, The majority of wholesale dry goods houses "was a material drop in collections observed, in district No. 4 (Cleveland) state that their due to retardation of sales owing to slow de- 11 percentage of collections for the first six liveries and a rainy spring, and inaoility to months was in excess of that for the same obtain bank accommodation." In district No. period last year. There is, however, less in- 3 (Philadelphia) "collections are reported as clination to anticipate the usual dating, prob- very slow, and this is attributed to the fact ably due to inability to secure customary bank that customers are unable to secure accommoaccommodation/' While certain houses in dation at the bank," being especially felt in district No. 7 (Chicago) report no decline in view of the large capital required due to high collections, but on the contrary show an in- prices. In this district collections are also crease, one house reports a decrease since May, slowing up in other branches of the rubber discounters now passing the discount and open industry. Inasmuch as automobiles are largely accounts in a considerable number of cases sold against sight draft, no change is noted in running past due. Certain houses in district collections, with the exception of one manufac- No. 3 (Philadelphia) report that collctions are turer in district No. 7 (Chicago), who reports "not quite as free as recently," and some cotton slowness especially in July on sales made on goods commission houses indicate a falling off open account. during August. There has been a seasonal decrease in district No. 6 (Atlanta), noticed PRODUCTION AND ORDERS OF UNDERWEAR. particularly in accounts running past due, but one house states that "they have been un- Certain data are being gathered monthly usually good, that is, for the summer season/' by the Association of Knit Goods Manufacwhile another has been able to "keep the show- turers of America relative to production, shiping of actual collections as good as in the last ments, unfilled orders, and cancellations in the two or three years only at the expense of a knit-underwear industry. great deal of more effort." Fifty-seven mills belonging to the associa- Reports received from leading clothiers indi- tion report their production of winter and cate a falling off in collections since April. A summer underwear for the month of July at large manufacturer in district No. 7 (Chicago) 583,190 dozen (73.4 per cent of normal outnotes an increase of 47.5 per cent in average put). June reports from 54 mills gave a proreceivables outstanding at the end of the month duction total of 560,034 dozen (80.3 per cent during April to July, inclusive, as against of normal). January to March, inclusive. Another shows Twenty representative mills reported for 82 per cent of its outstandings at the end of June and July the following data (in dozens) : June over 30 days old, while at the end of April about 23 per cent had run longer than 30 June. July. Loss. Gain. days. From St. Louis, however, it is stated that collections in this line, "while not as good Unfilled orders, first of month 987,084 770,995 216,089 as they have been, are in the main satisfactory." New orders during month 49,663 22,847 26,816 Shipments during month 245,366 285,130 39,764 In district No. 4 (Cleveland) clothing and gar- Cancellations during month 20,386 16,698 3,688 Production during month 266,140 230,418 35,722 ment trade collections are said to be satisfactory, although there has been little anticipation. Thirty-two mills reported similar data for The percentage of past due accounts, while July alone as follows: showing an increase over earlier in the year, is still very small, and August collections are Unfilled orders first of month, 1,285,005 dozen said to show improvement. In district No. 1 Production during month, 421,790 dozen (79.6 per cent of normal production). (Boston) collections in the men's furnishing New orde;M received during month, 36,291 dozen (8.6 industry are good, although in district No. 3 per cent of production). (Philadelphia) several reports show a decrease Shipments during month, 461,332 dozen (109.3 per cent since about April or May. In district No. 2 of production). (New York), as noted above, delayed payments Cancellations during month, 24,416 dozen (5.7 per cent of production). are reported generally in the industry. Balance of orders on hand August 1, 835,558 dozen 9149°— 20 3 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

926 FEDERAL RESERVE BULLETIN. SEPTEMBER, 1920. CONDITION OF WHOLESALE TRADE. may be some occasional reaction, the opinion of the trade generally indicates a gradual de- Increase (or decrease) in volume of net sales during July, 1920, cline in prices. as compared with the preceding month. The increase in money volume of sales by reporting wholesale dry goods firms ranges from 16.4 per cent to 114.2 per cent over sales for June. All reports show decreases as com- District. pared to July, 1919, ranging from 17.2 per cent to 37.5 per cent. Buying is limited to actual needs, and lower prices are looked for. Comparison of sales during July and June by P. ct. P.ct. P. ct. P.ct. No. 4.. wholesale hardware firms vary from a decrease No. 6.. -0.2 13 +79.1 + 6.1 + 3.9 No. 7.. of 9.1 per cent to an increase of 55.4 per cent. No. 10. Compared to sales for July last year, one report No. 11. + 3.0 + 27.0 + 18.0 No. 12. + 5.4 + 33.4 12 — 7.' 23 -10.0 13 shows a decrease of 25.3 per cent, while a majority of reports show increases ranging up to 57.2 per cent. While there is some expecft tation of lower prices later on, there seems to be District. I no immediate prospect of a material change. Wholesale shoe firms report increases for I July over June as high as 50 per cent, while in only one or two cases are decreases shown. P.ct. P.ct. P. ct. P.ct. P.ct. Only one report shows an increase over July No. 4 No 6 last year, decreases in other instances ranging No. 7 from 6 per cent to 28 per cent. The down- No 10 -19.0 - 6.0 No. 11 + 14.0 + 20.0 ward tendency is expected to continue, but by No. 12 5.5 — 4 + 5.5 a long swing rather than precipitately. Wholesale cancellations of orders during June and Increase (or decrease) in volume of net sales during July, 1920, July are now to some extent being reinstated. as compared with July, 1919. DISTRICT NO. 11 (DALLAS). The increased volume of orders booked in District. July by wholesale dealers in dry goods, hardware, drugs, and automobile supplies, as reported by our correspondent firms, indicates P.ct. P. ct. P. ct. P.ct. No. 4.. +20. + 16.0 +24.7 that retailers are now beginning to lay in No. 6.. +26. -26. +20.9 -9.5 No. 7.. stocks in preparation for the fall trade. No. 10. Reports indicate that the wholesale apparel No. 11. -2.0 5-2.0 +18.0 No. 12. + 2.7 29 +31.7 +20.4 -2L8|" trade shows symptoms of renewed strength, following an exceptionally dull summer season. According to newspaper accounts of the first District. "buyers excursions" recently conducted by the large wholesale centers in this district, buying of fall merchandise has opened up on P.ct. P. ct. Pet. P.ct. P.ct. a more enlarged scale than the wholesalers No. 4 +29.6 were led to expect by the previous attitude of No. 6 No. 7 extreme caution on the part of the retail dis- No. 10 + 15.0 No. 11 +32.0 3 -25.0 tributors. Although the excellent crop pros- No. 12 15 +23.7 +37.31 21 pects have unquestionably created a more hopeful feeling in all lines of business, the effect of the present strained condition of credit is DISTRICT NO. 6 (ATLANTA). still apparent in the volume of orders reported A majority of reports received from whole- booked by the wholesale trade last month, as sale grocery firms in the district show substan- contrasted with sales in July, 1919. tial reductions in the money volume of sales While all reporting lines except farm impleduring July as compared to sales for June. ments showed an increase in sales over the Most reports show increases over sales for month of June, 1920, July sales of dry goods, July, 1919, ranging from 5 per cent to as high groceries, auto supplies, and farm implements as 65 per cent and 70 per cent. While there were below the record of July, 1919. Only Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

SEPTEMBER, 1920. FEDERAL RESERVE BULLETIN. 927 hardware and drugs scored gains for the 12- Percentage of increase in net sales Jan. 1-July 30, 1920, over month period. July witnessed an appreciable same period, 1919. slowing up of collections as compared with the s sa it i u d a , ti h o o n w e e v a e r r li , e r t h i a n t a th f e a l s li u n m g m o e ff r. in I t c o m lle a c y ti o b n e s H w a a r r d e - . g D oo r d y s. ce G r r i o es - . Shoes. t e S io r t y a n . - - F tu u r r e n . i- TotaH at this season of the year is a normal occurrence, as payments are usually at a low ebb Los Angeles 59.7 34.8 37.5 52.2 21.2 46.5 just prior to the harvesting of the cotton crop. Sacramento 46 0 18 7 27.6 San Francisco 52.2 49.1 28.5 20.9 52.9 82.4 35.9 Wholesale prices generally were stationary Portland 33.0 31.9 28.2 - 7.2 54.3 51.0 21.9 Salt LakeCitv 32.5 50.0 33.6 in July, with a slight weakening shown in cer- Seattle "26." 6*"58." 8" 20.9 23.5 28.9 tain grocery staples and in dry goods, and an Spokane.. 87.7 57.1 25.2 37.5 33.0 Tacoma 30.1 19.3 41.4 74.5 27.5 upward tendency in the drug and" hardware lines. Hardware dealers report that it is be- District 42.3 48.9 27.7 14.3 43.4 55.4 34.2 coming increasingly difficult to secure goods Drugs: San Francisco, 21.3 per cent; district, 25.2 per cent. from manufacturers, whose supply of raw ma- 1 Includes reporting drug firms. 2 Decrease. terials and manufactured stocks is said to be unusually low at this time. Wholesale stocks Percentage of increase or decrease in net sales for July, 1920, over June, 1920. on hand July 31, measured by cost values, showed substantial increases over those of a y T e h a is r a s g it o u a in ti o a n ll d re e p n o o r t t e i s n , g t o li n s e o s m e e x e c x ep te t n d t r y a t g l o e o a d s s t, . H w a a r r d e - . g D oo r d y s. c G er r i o e - s. Shoes. t e S io r t y a n . - - F tu u r r e n . i- Total. an improvement in the transportation service, which, though still the subject of general com- Los Angeles i 6.7 7.9 i 10.9 122.3 8.6 0.4 Sacramento 119.4 12.4 18.9 plaint, is more satisfactory than it was a year San Francisco 13 6 40 3 1 14 2 1 12 3 1.8 ago. P Sa o l r t t l L a a n k d e City M.O 19.0 l 3 2 8 . 6 0 16.5 2 1 2 1 . 9 9 5.4 1 1 7 . . 2 5 Seattle 1 18.3 1 1.2 14.2 M.I i 2.5 DISTRICT NO. 12 (SAN FRANCISCO). Spokane 13 6 18.6 12 9 12 1 12.8 Tacoma 1 12.6 !9.4 126.4 110.5 Department stores and wholesale grocery, District i 7.7 33.4 5.4 i 10.0 5.5 15.5 6.7 dry goods, and shoe stores reported a slight downward tendency in prices during the past Drugs: Portland, 8.2 per cent; i district, 4.7 per cent.2 month, while wholesale hardware, stationery, i Decrease. and furniture stores reported an upward tendency in prices. Reports indicate that the Loans for Essential Industry. transportation situation is not interfering with local deliveries, but many concerns report Governor Harding, in a letter of reply to a difficulty in securing shipments from the East lumber company on August 27, discussed the because of car shortage. Collections during question of essential production as follows: July were reported in general as good, the The Federal Reserve Board has done nothing by act or same as in June, although an increasing numimplication to discourage loans for essential building opber of stores reported that July collections erations. The Board is well aware that the country is sevwere only fair. eral years behind in its building operations, due to curtailment during the period of the war. It recognizes the Condition of Wholesale Trade During July, 1920, in urgent need for more houses for dwelling and business purposes and realizes that construction work now under way District No. 12. is not nearly great enough to supply the requirements. This is due in part to the difficulty in making the necessary Percentage of increase or decrease in net sales for July, 1920, financial arrangements, for many of the savings banks, inoxer July, 1919. surance companies, and other lending institutions have invested heavily in Government bonds and are just finish- H w a a r r d e - . g D oo r d y s. ce G r r i o e - s. Shoes. t e S io r t y a n . - - F tu u r r e n . i- Total.i i t n h g es t e h e in l v iq e u st i m da e t n io ts n , o w f h th il e e i o n t d h e e b rs te d h n av es e s a i p n p cu li r c r a e t d io i n n s m o a n k i f n il g e for loans which have to be taken up in regular course. Another obstacle to the progress of building operations is Los A.ngeles 29.3 7.1 4.7 52.0 15.3 20.2 the lack of adequate transportation facilities. We are now S S P a a o c n r r t l a F a m r n a e d n n c t i o sco 3 1 1 0 5 2 . . . 4 8 2 3 5 3 4. . 8 5 21 7 1 . . . 5 7 8 2 2 3 23 4 . . 3 7 8 4 0 5 . . 5 1 2 1 1 8 . . 1 8 1 8 8 1 . . . 4 8 8 h th a e v i r n a g il r t o h a e d s s e w as i o ll n b a e l m se o v v e e re m ly e n t t a x o e f d c r f o o p r s t h a e n d n e t x h t e f e fa w c i m lit o ie n s t h o s f Salt LakeCitv -4.3 74.8 4.1 in furnishing adequate transportation for this purpose. Seattle ""i.S 20.8 4.1 7.9 "ih'.S 10.1 The abnormal cost of construction is having its effect upon S T p ac o o k m an a e 7 1 8 1 . . 6 1 57.2 1 6 2 . . 1 3 3 2 7 8 . . 6 2 14.1 2 8 1 . . 5 8 building operations, many owners being reluctant to build under existing circumstances, even where they are able to District 20.4 31.7 2.7 21.8 37.3 8.8 12.0 make satisfactory financial arrangements. While the Federal Reserve Board has pointed out the Drugs: San Francisco, 29.1 percent; Portland, 11.1 per cent dis- necessity, in the present circumstances, for the exercise of trict, 23.7 per cent. more discriminating judgment on the part of banks gener- Includes reporting drug firms. 2 Decrease. ally in granting accommodations, it has repeatedly stated Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

928 FEDERAL RESERVE BULLETIN. SEPTEMBER, 1920. that care should be taken to do nothing to interfere with TERMS OF SALE. essential production. The Board has never undertaken to define what in its opinion might be regarded as essential The following is the sixth of a series of and nonessential loans; it has stated that this is a matter articles giving data as to current practice and which should properly be left to the judgment of the individual banks. There can be no question that the produc- recent history of terms of sale in the principal tion and distribution of the basic necessities of life, such as industries. Acknowledgment is due the varifood, fuel, and clothing, are essential, and it is obvious that ous branches of the Government and the many shelter is also a fundamental necessity. business houses, individuals, and trade associ- The Federal Reserve Board does not feel that it can be justly charged with responsibility for any restrictions of ations who have courteously furnished the incredit to the building industry. The rediscount transac- formation. tions of the Federal Reserve Banks are limited by section TANNING. 13 of the Federal Reserve Act and reserve banks are not permitted to make direct loans to borrowers; they can The tanning industry is very complex. only discount for member banks upon their indorsement "notes, drafts, and bills of exchange arising out of actual There ar& two principal branches. Solecommercial transactions; that is, notes, drafts, and bills leather manufacturers confine themselves of exchange issued or drawn for agricultural, industrial, or largely to this branch, although also producing commercial purposes, or the proceeds of which have been belting and harness leather to some extent. used, or are to be used, for such purposes, the Federal Reserve Board to have the right to determine or define the There is a greater diversity in methods of ciaracter of the paper thus eligible for discount within the tanning upper leather and a tendency to meaning of this act." "Notes, drafts, and bills admitted specialize on making certain classes and to discount under the terms of this paragraph must have a grades.1 The product is more varied, due to maturity at the time of discount of not more than 90 days, a wider range of uses, and there is a larger exclusive of days of grace." The Federal Reserve Banks, therefore, clearly have no power to finance building opera- number of kinds of raw material. In addition tions in the sense that a savings bank or insurance com- to producing the various types of upper pany can finance such operations by taking a mortgage leather, a few tanners also include in their proextending over a term of years, but when a building opduction bag and case, glove, fancy, and book eration is properly financed in advance by contract with some responsible individual, firm, or corporation to furnish leather. Most sole-leather tanners have a money at various stages of the construction, a reputable standard product for which there is a steady owner or contractor ought to have no difficulty in getting sale, consequently they produce considerable short-time accommodations at his bank for pay-roll purstock in advance of orders. poses or for current purchases of material. Notes given under these conditions maturing within 90 days and other- Leather is largely sold direct by the tanner wise conforming to the provisions of the Federal Reserve to the manufacturer of leather products. Act are eligible for discount at a Federal Reserve Bank Estimates place the proportion of leather sold when offered by a member bank with its indorsement. direct at over 75 per cent of the total output, these figures including sales by tanners through associated houses and subsidiary companies. Erratum. Although perhaps the majority of firms from, Attention has been called by Mr. Basil B. whom reports were received indicate no change Blackett, of the British Treasury, to an error in distributive methods during the past decade, contained in statistics printed in the FEDERAL some tanners report an increasing tendency RESERVE BULLETIN for July (p. 667). At that to sell direct instead of through selling agents. point the note circulation of the United King- The latter, however, may be employed in the dom at the end of May, 1920, was given as sale of leather at a considerable distance from 459,780,000 pounds sterling. This figure, Mr. the tannery. One tanner believes that upper Blackett points out, really includes twice over leather is sold to a larger extent through agents 7,850,000 pounds sterling of bank notes held than is sole leather. The amount passing in the currency note reserve. To that extent through the hands of leather dealers is very it vitiates the comparison with 1919, inasmuch small. They are employed more largely in as no notes of the bank were then held in the cleaning up job lots and in distributing to the currency note reserve. In future this factor smaller manufacturer. While considerable if not allowed for may seriously affect figures, upper leather is sold on consignemnt, it is the notes of the bank held in the currency understood that a large quantity is sold outnote reserve about the beginning of August right. Commission merchants in recent years already amounting to 18,600,000 pounds ster- are stated to be to a considerable extent beling. Allowance should therefore be made in coming direct owners of tanneries, and also the figures given on page 667 of the BULLETIN hide importers and dealers. During the war for July to the extent of the 7,850,000 pounds period a considerable increase was noted in sterling for which allowance was not made. the number of small speculative jobbers. Thanks are due to Mr. Blackett for the information. 1 Certain of the data contained in this article have been taken from Onthank, The Tanning Industry. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

SEPTEMBER,, 1920. FEDERAL RESERVE BULLETIN. 929 Among jobbers, the " finders " are an important practically ignored. Certain tanners give no class, cutting up the stock and selling the 20 days extra to purchasers taking 60 or 90 smaller finder, cobbler, or shoe-repair man who days. Some tanners make shipments direct is limited in his means, and carrying the large from the tannery instead of from warehouses number of articles, such as thread, machine in the larger centers, and in this case terms are parts, rubber heels, etc., which he requires.2 often made cash discount for payment on Leather belting is sold almost entirely direct arrival. Terms were changed some years ago, by tanners to the manufacturers. the general consensus of opinion placing the The tanning industry has no marked seasonal time at about 8 to 10 years. Prior terms were aspect, and one tanner states that purchasing 5 per cent 10 days, 4 per cent 60 days, "with depends largely upon market conditions, busi- almost any dating a shrewd buyer would feel ness being unusually good when prices are firm inclined to exact under abnormal market conand advancing, while less buying occurs when ditions/ ' and the change occurred as a result prices are weak and easier. On the whole, of the strain upon the tanner's resources. At however, business of the second half year is first no 20 days extra was given, but this was heavier than the first. Although most tanners shortly granted. It is stated by several auwho furnished data report no change in this thorities that dating is occasionally permitted regard during the past decade, some report at present, as for example, to jobbers in dull that seasonal fluctuations are now less pro- times. One tanner states that more recently nounced. One tanner states that since terms there has been considered the question of on sole leather were changed about 10 years reducing the discount from 4 per cent to 2 per ago, fixed buying periods have been largely cent which, state two authorities, was also obliterated. Broadly, there are, of course, attempted at the time the change in terms two seasons, spring and fall, with a short dull was carried out. The regular terms apply also period of several weeks after each season. It on tanners7 sales of cut soles, which are prohas been stated that deliveries in October in duced by several leading tanners (as well as by general are heaviest, due to the fact that shoe specialized manufacturers), and on rough beltmanufacturers are stocking up for their next ing leather. Finished belting leather, however, run, as well as to reorders for midwinter trade, bears terms of 5 per cent 10 days, with 4 per while activity is lowest about April or later. cent 60 days under special arrangement to This applies more largely to leather used by cover long time in transit. Cut stock for shoe the shoe industry, which it has been estimat- repairing purposes bears terms of 1 per cent ed constitutes about 70 to 80 per cent of 10 days, in some cases with 20 days extra, and the total output.3 The demand for belting in some cases with net terms of 30 or 60 days. leather is not seasonal, but varies according A leading tanner engaged in the sale of cut to industrial requirements. When business is stock to finders makes terms of 1 per cent 10 normal there is a steady trade all the year days, net 30 days on blocks and strips, but around in fancy leather. Purchases are made quotes 4 per cent 10 days, 2 per cent 30 days, in the late winter and early spring for Easter net 60 days on other classes of cut stock. business, and in the late summer and fall for Regular terms on upper leather, including Christmas business, with subsequent fill-in glazed kid and patent leather, are 5 per cent orders, and there is considerable buying for 10 days, 4 per cent 30 days. Considerable advertising purposes. flexibility exists with reference to the discount There are many variations in terms of sale period, and monthly settlement, ranging from in the industry as a whole, but in each branch the 1st to the 15th, is frequent, while in many certain terms are recognized as regular. Stan- cases 30 days is granted. Under special agreedard terms for sole leather are 4 per cent 10 ment, with the 4 per cent discount, 60 days is days, 3 per cent 30 days, 2 per cent 60 days, specified in a few cases instead of 30 days. net 90 days. A considerable number of tan- It has been reported that "the New England ners, however, do not quote the 90-day terms, trade usually demand and frequently obtain" while some also omit the 60-day terms. such terms. One tanner states that "it is not Twenty days extra is largely given, or pay- so much a question of changing terms as making ments permitted by a given date of the fol- our customers live up to them," while another lowing month, such as the 10th or 15th, for the states that "terms of sale do not seem to be previous month's shipments. It has been considered an obligation or contract to most of stated that the terms oi 3 per cent 30 days aie the shoe trade, and there is tremendous abuse in regard to the time taken in the payment of 2 It is estimated that from 30 to 35 per cent of all soleleather goes frombills and the amount of discount deducted." m 3 a n I> u a fa ta c tu o r b e t r a s i n t e o d s o b l y e t c h u e t te F r e s d a e n ra d l t T h r e a d sh e o C e- o r m ep m ai i r s s t i r o a n d e fo . r the year 1918 It has been stated by one authority that about give the output of shoe leather as 59 per cent of the total when measured10 years ago an unsuccessful effort was made in square feet, and 74 per cent when measured in pounds. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

930 FEDERAL RESERVE BULLETIN. SEPTEMBER, 1920 by certain tanners to shorten terms and reduce is, he is endeavoring to buy on extended terms, discounts on upper leather, while another states sell on a cash or 10-day basis, and turn his that some years ago an effort was made to re- capital from his customer to his source of purduce the discount to 4 per cent. While these chase without great obligation on his part, are the terms on finished leather, rough leather thus causing occasional lack of ready funds, carries only a 1 per cent discount. hence delayed payments." Several leading Usual terms on harness leather are 2 per tanners state that some shoe manufacturers at cent 30 days, net 60 days and in some cases net times in the early part of their season when 90 days, while russet collar leather carries terms they are obliged to make and hold shoes for of 2 per cent 10 days and in some cases 3 per delivery dates are inclined to be slower in paycent 10 days, net 30 and 60 days. ments than ordinarily. One tanner of sole and During the last few years terms on glove belting leather considers belting manufacturers leather have been shortened and discounts re- more prompt, while another reports no differduced or abolished. At the present time they ence in collections on shoe and harness leather, range from net 10 days to net 30 days, in the with glove-leather collections slightly less latter case often carrying a discount of 1 per satisfactory. cent or 2 per cent 10 days. It is stated that While the majority of authorities report that the great majority of fancy leather manufac- jobbers' terms do not differ from tanners', some turers employ terms of either 2 per cent 10 believe that dealers' terms were more liberal days, net 30 days, or 2 per cent 30 days. Ex- in the time given, although the standard disceptions noted are granting of the discount on counts are the same. As jobbers sell to smaller accounts taking more than 30 days, the quot- accounts, which the tanners would not solicit, ing of net 30-day terms and by several smaller their collections are believed to be less prompt. manufacturers of terms of 3 per cent 30 days, Finders' customary terms are stated to be 2 which latter were the general terms up to per cent 10 days, net 30 daj^s, althougn in cerseveral years ago. Purchases by fancy leather tain districts longer net terms, such as 60 days, goods manufacturers from tanners producing are given. Finders' collections are stated to chiefly sole leather carry the regular sole-leather have greatly improved during the last few terms" of 5 per cent 10 days, 4 per cent 30 days. years with the placing of the shoe-repairing Coat leather is sold on terms of net 30 days. industry on a more businesslike basis. Customary book-leather terms are 2 per cent 10 days, net 30 days,4 and for upholstery BOOTS AND SHOES. leather 2 per cent 10 days. It is estimated that approximately 60 per The trade acceptance is used only occasionally cent of the total output of shoes is distributed in the industry, the individual tanner when through jobbers, and, states one authority, the employing it at all employing it only on a percentage would be even greater were jobbing very small proportion of his accounts. Its use, houses owned b}^ manufacturers included. however, is reported to have increased during Certain manufacturers also distribute goods the past year. A leading tanner states that from other factories in addition to their own. " accounts not handled on a discount basis are In St. Louis in particular there has been an not considered satisfactory," and estimates increasing tendency during the past decade for that from 15 to 20 per cent of accounts run manufacturers to job also shoes produced by overdue, although not seriously, and in a large other manufacturers. Practice with respect to majority of cases interest is added for the sales to jobbers varies between the different overtime. While many tanners note no differmarkets, and thus in Cincinnati manufacturers ence in collections from the various classes of in general do not sell jobbers, while in Rochpurchasers, it has been stated that " shippers ester, where women's and children's shoes are generally regard the shoe trade as more desirproduced, the percentage is estimated at 40 able than the jobbing trade." Collections from per cent. The same manufacturer ordinarily larger jobbers and finders, however, are stated does not sell both wholesaler and retailer. to be as prompt as collections from shoe manu- Heaviest sales by manufacturers are in March facturers, and several tanners consider them at and April and in September and October, times more so, but the smaller jobbers and heaviest production in December to March and finders are naturally less prompt. Small June to September, and heaviest shipments in dealers are stated mostly to obtain their sup- February to April and August to September. plies through larger jobbers. In the words of Terms on which manufacturers sell vary one tanner, "in most cases a jobber is trying to considerably, instances reported ranging from do too much business on his given capital, that net 10 days to discounts of 10 per cent, one manufacturer reporting 7 per cent for payment * Onthank, op. cit., p. 37, gives the discount as either 2 or 3 per cent. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

SEPTEMBER, 1920. FEDERAL RESERVE BULLETIN. 931 25th e. o. m. Distinction is made by certain ported that St. Louis houses in 1918 granted manufacturers between different types of sales, July 1 due date on this item, whereas other one Cincinnati house thus having regular terms markets granted June 15, as did the rubber on goods to be made up of 2 per cent 10 days, ompanies also. net 30 days, to retailer, with 30 days extra on Prior to 1918 general terms of shoe wholeshipments over 1,000 miles; 5 per cent 10 days, salers were largely net 60 days, with considernet 30 days, to department stores, and 6 per able variation in the cash discounts given, cent 10 days, net 30 days, to jobbers, while net which ranged roughly from 1 per cent 10 days 30 days is quoted on goods sold from the floor to 5 per cent 30 days, but averaged 2 per cent or out of stock. On sales to jobbers the cash 10 days, in some cases with 1 per cent 30 days discount will be stressed, whereas on sales to quoted in addition to the latter, for example, retailers the norm is largely net terms of 30 in New England largely. In the fall of that days, as will be indicated below, although net year, upon the suggestion of the Allied Council 60 days is quoted by some manufacturers.5 of the American Shoe and Leather Industries This is reflected in the difference in the per- and Trades, an attempt was made to change centage of wholesalers and retailers who take terms to net 30 days, and "a movement, which the cash discount, estimated for the Rochester had considerable strength, developed for dismarket as 80 per cent and 50 per cent for the count of 1 per cent 10 days, and although it is respective classes. The average percentages far from uniform, the trend seems to be toward range from 50 per cent to in some cases 60 to the latter figuring.77 The matter was discussed 70 per cent. A substantial percentage of over- by both the National Association and the four due accounts is shown, several houses stating constitutent territorial associations, each of that 20 to 25 per cent of retailers run beyond which has had for some years a committee the net period. A shortening of terms is re- dealing with the subject of terms, discounts, ported during the past decade and greater and overdue accounts, and there was general uniformity has been introduced. Very little agreement as to the desirability of these terms. use of the trade acceptance is reported by Local groups have also considered the matter, manufacturers. and on various occasions there have been Due to the fact noted above that shoe manu- resolutions passed recommending certain terms. facturers in large part also engage in jobbing, A survey made in 1919 by the committee of purchasing other makes and maintaining stocks, the National Association, and embracing 159 little attention apparently has been paid to the houses, showed that in the New England, terms upon which the wholesaler purchases. Middle Atlantic, and Middle Western sections This activity has been confined more largely to there was general adherence to terms of 30 rubber and tennis footwear, in which a con- days, although in the South the reverse was tract is signed with the manufacturers for the true. Certain houses made terms of both 30 ensuing year. At the January, 1920, meeting days and 60 days. Less uniformity was, howof the National Shoe Wholesalers Association, ever, noted on the question of discounts. it was suggested that whereas canvas footwear While in New England 1 per cent was cusand tennis shoes were billed out on a net due tomary, in the Middle Atlantic States 2 per date of June 15, and fall shipments of rubber cent was more frequent, due to the fact that boots and shoes on November 1, bearing terms Philadelphia and Baltimore houses, with few of 1 per cent 10 days net 30 days, and in the exceptions, were on a 2 per cent basis. In interests of uniformity, rubber boots and shoes the South 2 per cent was almost universal, should bear due date of December 1, allowing while in the Middle West the number of houses 12 per cent for anticipation, or canvas foot- allowing 2 per cent was considerable, although wear should be billed May 15, 1 per cent 10 somewhat less than those allowing 1 per cent. days net 30 days, but no action was taken in In the South some houses reported the employview of the need for conforming to the action ment of net terms only, while in the Middle of the company stores. A resolution was intro- West more houses employed such terms than duced by the committee on datings, discounts, granted a discount of 2 per cent, although the and overdue accounts of the Western Asso- figure was somewhat less than those granting ciation in 1918, providing that all tennis a discount of 1 per cent. As a result of its invoices from May 15 to January 1 be due 30survey, the committee stated that "very days from shipment date, and that invoice; gratifying progress has (apparently) been made from January 1 to May 15 be due and payable in shortening terms and discounts/' The June 15, but no action was taken. It is removement has since continued, although exceptions to the terms of 1 per cent 10 days, 6 Little differentiation is reported by manufacturers between terms net 30 days, are still found. With the excepon which they sell their own goods and those of other manufacturers tion of the South, almost all new accounts -which they job. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

932 FEDERAL RESERVE BULLETIN. SEPTEMBER, 1920. were stated recently to be on a 1 per cent 10- Considerable interest has been manifested in day, net 30-day basis. Turning to the several the trade acceptance, and some educational sections, at the opening of the present year work has been undertaken by the associations, practically all upstate houses in New York but little use on the whole is made of the instruwere believed to be on the new basis, and some ment. In 1918, of 62 middle western houses, New York City houses in fact quoted 2 per 16 were using it with satisfactory results, while cent to New York City trade and 1 per cent 13 were desirous of employing it, but considupstate and in New England. In the West erable lack of knowledge of its proper use was terms were considered in 1918 at several group found, as well as lack of interest due to shortmeetings, the change being initiated at St. ness of terms and fear of loss of business Joseph, and finally accomplished at a Chicago through nonuniversality of its use. meeting. Net terms were fixed at 30 days, As noted above, the committees of the with 15 days extra for shipments of 1,000 miles national and constituent associations deal or over. At the November, 1918, meeting of with overdue accounts as well as terms and the Western Association data obtained showed discounts. The practice of charging interest that three-fourths of the firms replying had on overdue accounts is widespread in certain adopted the 30-45 day terms, most frequent sections, being reported as general in New discounts being 1 per cent and 2 per cent and England. Particular interest has been maniabsolutely net, and a resolution was passed fested by the Western Association, only 9 out favoring the elimination of the cash discount of 67 reports to it in 1918 showing no interest and making the terms net 30 or 45 days, with charged, while in 1919 the proportion had latest shipping dates on white goods or low fallen to 3 out of 40. shoes April 1, as concession to northwestern houses. While the Southern Association has LEATHER MANUFACTURES. considered the matter of terms during the past two or three years, the same success does not Fancy leather goods, such as hand bags, card appear to have attended its efforts as has been cases, etc., are sold by approximately half the the case with the other associations. It is manufacturers to both wholesalers and retailgenerally agreed that the change in terms has ers , whereas the other half is about equally been made with little difficulty, and that there divided between sales exclusively to wholehas been no adverse effect upon business. salers and exclusively to retailers. Discounts There has also been the saving in the discount, have varied greatly within the last 10 years, in addition to more rapid inflow of funds, and and prior to about 5 years ago there was no corresponding reduction in bank borrowings. standardization. Department stores in par- An aid thereto, of course, has been the mer- ticular received discounts up to 7 and 10 per chandising situation in the industry. cent at that time, but these have since been Advance orders have always been taken, largely abolished. The recognized present although it is stated from New England that terms are 2 per cent 10 days, net 30 or 60 days. the seasonal aspect of the industry has been Certain manufacturers, however, employ terms less marked during the last few years, due to of 2 per cent 10 days, 60 days extra. As active consumption and more frequent pur- amounts are comparatively small, little use is chasing. Orders are taken for shipment on a made of the trade acceptance. given date, with the seller retaining the privi- Heaviest deliveries of saddlery north of the lege of prior shipment, in which case the goods Mason and Dixon line occur from December to are billed as of the date called for in the order February, while south of the line they occur in place of date of shipment, and carrying the during June and July. Adopted terms of the usual terms. Time of shipment varies some- Wholesale Saddlery Association were shortened what, and likewise the " dating" granted. in 1917 from net 60 days from date of shipment Spring shipments in general will be made from to net 30 days, both with a cash discount of 2 December on, January, February, and March per cent 10 days. Anticipation of season datbeing the heaviest months, and the most fre- ing is permitted at the rate of 6 per cent per quent datings are March 1 and April 1, although annum, while provision is made for collection February 1 and May 1 may also be granted. of interest at the legal rate in the debtor's State Fall shipments in general will be made from on overdue accounts. Datings shall be given May on, July, August, and September being the only on manufactured leather goods, sweat heaviest months, and the most frequent datings pads, summer and winter horse clothing, and are September 1 and October 1, although lap robes. Except in nine of the Southern August 1 and November 1 may also be granted. States, a maximum spring dating of March 1 is Certain houses have eliminated the season permitted on shipments made not earlier than dating entirely. December 1, while in Texas a maximum fall Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

SEPTEMBER,, 1920. FEDERAL RESERVE BULLETIN. 933 dating of August 1 is permitted on goods small operator without yards, who puts his shipped not earlier than June 1, in Arkansas product in transit as soon as cut. It is stated and Louisiana the respective dates are Septem- that in some cases wholesalers pay such operber 1 and July i and in the remaining six ators in full in advance, thus furnishing the ? Southern States October 1 and July 1. North- funds for the business, while in other cases ern Oklahoma has a maximum spring dating 80 to 90 per cent, and in some instances up of March 1 on shipments made not earlier than to 98 per cent, may be paid on receipt of December 1, and southern Oklahoma a maxi- invoice and balance on arrival of car. Second mum fall dating of September 1 on shipments are terms embodied in special contracts drawn made not earlier than July 1. Both datings to cover a considerable period of time. This are permitted in Tennessee. In addition there form is usually employea between large mills are certain season goods, such as summer lap and wholesalers and manufacturers of products robes (July 1), fly nets, and horse cloth (June 1), such as furniture, where these manufacturers winter horse cloth (October 1), and fur goods receive their entire supply of raw material (November 1), which carry maximum datings. from the mills in question. These terms vary It has been estimated that roughly 25 per according to the individual case. cent of the output of leather belting is sold to The terms recommended by certain of the dealers. The industry is not seasonal, demand larger manufacturers' associations, which have differing but slightly at different seasons of the interested themselves in the subject during the year. The most frequent terms are 1 per cent past 8 or 10 years, provide the third class. 10 days, net 30 days, although some houses em- Frequent deviation, however, is found, and ploy terms of 2 per cent 10 days, net 60 days the terms must be regarded rather merely as and a small number net 30 days. Proximo representing a norm. They usually form part terms are granted in certain cases. During the of a series of provisions which are far wider past decade terms have been reduced from 2 in scope, and cover also matters such as per cent 10 days, net 60 days. It is stated grades, deliveries, claims, etc. The cash disthat "the great bulk of the business is paid count specified, in particular by eastern and promptly and advantage taken of discounts." southern associations 7 has been 2 per cent 10 days or 15 days from date of invoice on the LUMBER. net amount of the invoice after deduction of freight,8 in some cases if the remittance is Manufacture.—The outstanding feature of mailed within that time.9 While for many the lumber manufacturing industry for the years 15 days was the universal discount present purpose is the existence of a large period, it is stated that the western producers number of operators, estimated at upward of found themselves handicapped by this ar- 40,000, and ranging all the way from the small rangement, due to the fact that cars were in portable mill, which may operate on either transit from 15 to 30 days, and as they got virgin timber or second growth, to the large farther and farther east with their product and mill operating on extensive bodies of virgin railroad congestion increased, delivery took 60 timber. Only within recent years has it been days or more, whereas in the south and east possible, largely through the activity of the rail delivery was usually secured within the lumber associations, to attain some measure 15-day period. As a result, the discount period of uniformity in selling and financing meth- was not as strictly observed by the western ods, and to set up certain standards. In shippers. The majority of the western assospite of certain differences in demand, and the ciations, as well as one northern and one varied problems of production, these stand- southern association,10 now have instead a ards, however, are similar as between the dif- clause permitting the cash discount for payerent kinds of wood, as all manufacturers and ment within 5 days after arrival of the car, wholesalers come into competition with each in general as evidenced by the paid freight other to a greater or lesser extent.6 bill. Toward the close of 1917, three Terms of sale may be divided substantially of the western and northern associations, into three classes. First are those calling for part cash, such as 10 per cent or more, with 7 One association provides for discount for payment on receipt of order and the balance on receipt of notice of invoice. Several other associations report these discounts generally in use among their membership. shipment. Such terms are used by the very 8 A delivered price is generally quoted, and deduction of the freight by the purchaser permitted. 9 With a relatively few producers the discount is 1£ per cent, and in 6 One authority believes however that, as the value of the averageonly one territory may it be said to be practiced in a territorial way, carload of hardwood is considerably in excess of that of a carload ofnamely, Buffalo and Tonawanda, and there it is largely confined to softwood, and as many of tile consumers of hardwoods are in business sales through New York State. in a small way and with limited capital, in actual practice more liberal 10 One western association states that 1 per cent 5 days after arrival terms are extended on hardwoods. is in general use among its membership. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

934 FEDERAL RESERVE BULLETIN. SEPTEMBER, 1920. in the belief, it is stated, that terms would the past year "mills did a great deal of busiultimately be entirely on a net basis and that ness on a cash with order basis." It is stated a 2 per cent discount was excessive, reduced that wholesalers at present discount practithe discount in their recommended terms to cally all bills. Considerable difference also 1 per cent. Great difficulty, however, was exists between purchasers with respect to the experienced, and the former discount was re- promptness with w^hich payments are made on stored after about a year. In several cases bills which are discounted. Thus a western 1 per cent 30 days from date of invoice is also association stated last year that the larger specified, and in the case of one southern asso- line yard buyers with headquarters in Minneciation, which has terms calling for 2 per cent apolis and Kansas City, pay within 15 days within 5 days after arrival of car, the 1 per from invoice date, which was two to three cent is given for payment within 30 days after weeks in advance of receipt, while others paid arrival instead of invoice date. 5 days after arrival of car and still others up Standard net terms are 60 days from date of to 15 days thereafter. invoice, although in a few cases where no Wholesale.—A study published in 1918 states terms have been recommended it is reported that "there has been a marked tendency in that 30 days is given instead. In certain recent years to increase the sales of lumber cases provision is made for a trade acceptance,11 from the sawmill direct to the larger consumer, and several associations specify that it be or retail yard/'16 Wholesalers, however, state mailed within a certain number of days, more recently that the recent high prices presuch as 10 or 15, after the invoice date. One vailing and the increased cost of doing business association permits 90 days with a trade ac- has resulted in mills seeking the wholesaler, ceptance as against 60 days with a note set- and increased the proportion of business done tlement. Difficulty arises in case a buyer through them. The practice varies with the wishes to discount his bill, but has not as yet different localities, 60 per cent of the output received the shipment. Largely in the West of southern pine, for example, being sold and South,12 a clause is included to govern direct, chiefly by large mills, while on the terms in the event of nonarrival of the car West Coast the figure is but 20 per cent. Conwithin a certain period, either the discount sidering the type of purchaser, a leading authorperiod, where this is a specified number of ity has given the following estimates of the days after date of the invoice, or where this proportions of business done by lumber manuperiod is 5 days after the arrival of the car, facturers and wholesalers with retailers, plan-r within 30 days or the net period of 60 days. ing mills, and manufacturing consumers. In In this event it is usually provided that 90 this compilation, the planing mill percentage is per cent of the invoice, less the estimated separated from the general retail business, freight (the actual figure for which, however, although it is very common for a retail lumber is given by many shippers) shall be paid, and yard to operate a planing mill. the balance be due on arrival and inspection. In certain cases, principally in the West, a Manufacprovision however is inserted prohibiting the Section. Retail. Pl m an il i l n . g tu c r o i n n - g deduction of the discount when payment is sumers. not made within a specified number of days after the date of the invoice, in certain cases New England Per ce 5 n 0 t. Per ce 2 n 0 t. Per cen 3 t. 0 30 days and in other cases 60 days.13 Middle Atlantic States .. 45 25 30 Southern Atlantic States 35 30 35 The associations7 terms, however, are by no Central States GO 10 30 means adhered to in all cases. Thus, for Western States , 40 30 30 example, a southern association which has Two leading middle western wholesalers, recommended the 2 per cent 10-day, net 60-day ever, state that the trade of wholesalers with terms, reports that many do not adhere to the retailers is a relatively small part of the business terms and accounts frequently run 90 days, in that section, although it is believed that in while they are often closed by notes running the east the reverse is the case, and one estithree to four months. Terms in fact vary with mates that 60 to 70 per cent of wholesalers' sales general market conditions, and it is stated that in his territory are to manufacturing consumers. in consequence of the heavy demand during Standard recommended terms were first 11 Another also reports the use of the trade acceptance to cover the net adopted by the National Wholesale Lumber period. Dealers' Association in 1902. These terms !2 Another also reports use of the clause by its membership. is One association specifying 30 days states that the arrangement has provided for net cash payment of freight, the been provided "to allow sufficient time for the shipper to render invoices and tally sheets and for the consignee to receive, check and make remittances and take advantage of the discount." 16 Dodd, Lumbering, p. 13. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

SEPTEMBER, 1920. FEDERAL RESERVE BULLETIN. 935 balance to be settled for by note at 60 days in 10 days after arrival and unloading, but if from date of invoice, or less 1J per cent if paid not so paid the discount was to be credited only within 15 days from date of invoice or 1 per cent on the amount paid within the discount period. 30 days. No discount was to be allowed after The provisions as to freight and nonforfeiture 30 days, but in the event of nonreceipt of car of the right to make corrections are again inwithin the discount times, prepayment was not serted, as well as the 30-day discount limit. held to forfeit the right to make corrections. One authority states that many wholesalers at These terms were reaffirmed at subsequent the present time are trying to sell on terms of conventions, although there had gradually come 1J per cent based on date of arrival, while they about widespread deviation from them. In take 2 per cent from the manufacturers, paying 1917 the committee on terms of sale unsuccess- in 10 days or less from date of shipment. fully recommended the recognition of existing Among variations from these terms, it should conditions and instead the adoption of terms be noted that eastern lumber, manufactured in calling for a note at 90 days from date of in- New England and the Canadian Provinces, for voice, with a discount of 2 per cent if paid with- many years has been generally sold on special in 10 (Jays from date of arrival of car. It was terms of 1 per cent 10 days from date of invoice, stated that terms at that time were in many or net 30 days. cases 2 per cent 30 days, net 90 days, from date As in the case of payments to lumber manuof shipment, which were first instituted in the facturers, considerable variation exists with case of shipments to a distance in view of the regard to payments to wholesalers. Data obtime the shipment was in transit. Several of tained from leading wholesalers indicate that the retailers' associations have interested them- from 40 to 50 per cent of purchases are disselves in terms, and adopted recommended counted, although considerable variation is terms on which their members purchase. shown between individual firms and the per- While this has been the most prominent in the centage, of course, varies with general business metropolitan district, it is stated that such conditions. One authority states that woodterms have been adopted among others in New working concerns take full time and are con- England, New York State, New Jersey, Ohio, sidered slow, although the majority report no Pennsylvania, and Illinois. "The main point difference between collections from retailers in contention/' states one authority, "is that and planing mills. It is generally agreed that the retailer would like to buy at a certain time industrial consumers provide a higher perfrom arrival, whereas the wholesaler endeavors centage of discounters than do retailers, some to insist (in order to definitely fix the date) on authorities stating that the former usually the time being based from date of shipment. discount their bills. Some large furniture The reason for this contention has been the manufacturers, however, are reported by sevgreat delays since the war in lumber coming eral middle western wholesalers to take "as through." The recommended terms of the long as they can," and in one case pay interest New York (City) Lumber Trade Association for the time (30 to 60 days) taken in excess call for 2 per cent 10 days from date of arrival of 60 days. Requests for renewal are stated or note due 3 months from date of arrival, and to be more frequent in the territory east from a considerable amount of lumber has been Pittsburgh, and come chiefly from the retail bought on these terms, while net 4 months from trade. In such cases it is usual to require part arrival has also been employed. After a con- payment, in general 50 per cent, and the most ference with representatives of other lumber frequent additional period is 60 days, although trade organizations, standard recommended 30 days and less frequently 90 days are also given. terms were prepared by the committee on terms In the industry, as indicated above, while of sale of the wholesalers' organization, and net terms in certain cases are on open account, adopted at the 1920 convention. These terms they are more frequently covered by a note. called for net cash 60 days from date of invoice, Within the last few years the committee on or less 2 per cent if paid within 15 days from terms of sale of the National Wholesale Lumber date of invoice, or 1 per cent if paid within Dealers Association has advocated the use of 30 days. Settlement by note or trade acthe trade acceptance, and the standard terms ceptance was permitted at 90 days from were changed in 1919 by providing for the use date of invoice, same to be mailed within of either trade acceptance or note where net 10 days after arrival of car. In the event of terms were employed. The committee stated nonarrival of the car within the discount period in its 1920 report that the information which deduction of the discount was permitted for it had indicated that the use of the instrument payment within the discount period of 80 per was growing rapidly. It is stated, however, cent of the net amount of the invoice (estimated that certain retailers in the larger cities who freight deducted), the balance to be paid withdo not discount endeavor to force the use of Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

936 FEDERAL RESERVE BULLETIN. SEPTEMBER, 1920. the open account, and frequently run beyond carload and less than carload lots. It has the 90-day net period. It should be stated, been stated, however, that the eastern fachowever, that while various associations have tories are practically all on a net basis. recommended or approved certain terms, there With the heavy demand for furniture in is no obligation on the part of the members to recent years, there has been a tendency to adhere to those terms only, the action being abolish datings and reduce discounts. Prior merely a recommendation considered in the to several years ago, extra dating, such as for best interests of the industry for producing example 60 days, was given by some manuuniformity in settlement. facturers, and retailers might obtain 30 days extra on shipments at certain seasons of the year, while it was also customary in certain FURNITURE AND STORE FIXTURES. cases to accept notes with the privilege of renewal. At the present time, 15 to 30 days Furniture is largely sold by the manufacturer extra is given by certain manufacturers on direct to the retailer. In "the case of home long-distance shipments, such as to the far furniture, including both dining and bed room West. In the case of discounts, many of the types, it is estimated that 80 per cent or manufacturers gave cash discounts up to 5 per more is sold in this manner, while for office cent, in which latter case terms of 2 per cent furniture the percentage is probably even 30 days might also be quoted. Upholstered greater. Manufacturers of certain lines, in furniture manufacturers prior to 1919 in many particular filing equipment, however, have cases gave discounts up to 5 per cent, but these chains of stores through which their product have been superseded by a 2 per cent discount. is retailed. Store fixtures are largely sold Other manufacturers report the elimination of through agents, but are sold direct by certain quantity discounts. manufacturers. Although the adopted terms of several of the Manufacturers of home furniture in many associations provide for the use of the trade cases distinguish between sales in carload lots acceptance, the instrument in general is not and less than carload lots and sales to wholeemployed to a very considerable extent in the salers. Sales in less than carload lots carry industry. It is stated, however, that its use the smallest discount, in general 2 per cent is growing among southern manufacturers, and 20 days or 30 days, with net terms of 60 days, it is now employed for from 15 to 20 per cent although in certain cases terms such as 2 per of the accounts. Before the war 10 to 15 per cent 10 days, net 30 days, may be specified. cent of upholstered furniture manufacturers7 Proximo terms are frequently quoted. The accounts were covered by it, but as a result of National Alliance of Case Goods Associations the subsequent existence of a sellers' market some years ago adopted recommended terms and increased employment of cash terms, it is calling for 2 per cent 20 days, net 60 days, not much used now.18 The percentage of cash which were amended in 1919 by giving 1 per discounters reported by certain leading houses cent for a 60-day trade acceptance. Certain ranges from 30 to. 80 per cent, with 50 per cent of the constituent bodies have also recom- most frequent. From some sources it is stated mended terms. Data obtained in 1919 from that the percentage of accounts running over- 102 firms in various sections of the country due is smaller at the present time than in the as to terms in use indicated, it is stated, past. The following data were obtained in a surprising uniformity in adherence to 1919, showing the number of days accounts the regular adopted terms, and not over receivable on the books of certain representa- 2 to 3 per cent employed other terms. tive manufacturers: Carload lots in many cases carry a 5 per cent discount in place of a 2 per cent, or else an extra 5 per cent, the time given being Manufacturers of— the same, although no net terms may be Bed- Dining quoted in certain cases, while frequently the room room furniture. furniture. terms are the same as for less than carload lots. Among southern manufacturers, how- 30 to 39 days... 40 to 49 days... ever, the discount is stated generally to be 10 50 to 59 days... per cent, but a large number, possibly 30 or 60 to 69 days... 70 to 79 days... 40 per cent of the factories, have changed 80 to 89 days... 90 to 99 days... terms from 10 per cent 30 days to 5 per cent 100 to 109 days. 10 days. Jobbers' discounts range from 10 110 to 119 days. per cent to 20 per cent, although certain ia manufacturers quote the same terms as on A similar report was received from one eastern wholesaler. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

SEPTEMBER^ 1920. FEDERAL RESERVE BULLETIN. 937 Data obtained recently from certain houses BOXES, SHOOKS, AND SHIPPING CONTAINERS. show 10 per cent running past due in the majority of cases, averaging on the whole It is estimated that more than 90 per cent of about 30 days past due, although other houses the output of boxes and shooks 19 is sold direct show percentages ranging from 20 to 50 per to users. Wholesalers who do a commission cent. business as well as buy outright for the most Such information as has been obtained part represent factories which are either located indicates that jobbers7 terms do not differ at some distance from the market or are small materially from manufacturers', although their in size. Prevailing terms are 2 per cent 10 collections appear slower, a much larger pro- days, net 30 days, from date of shipment, but portion running past due. One eastern dis- some firms allow only a 1 per cent discount, tributor reports that up to two years ago, while others have eliminated the discount about one-half his settlements were made by entirely, and others grant net terms of 60 days. notes running 1, 2, 3, or 4 months. It is In some cases the discount period is from date stated that cash discounts of 5 to 10 per cent of arrival, in others it is 30 days from invoice, were given on quantity business in former while proximo terms, such as the 10th or 15th, years. are also given. There is stated to be a tendency in the industry toward the abolition of Terms of manufacturers of office furniture the cash discount. Certain differences, howare reported as substantially similar to those ever, exist as between different sections. Thus of manufacturers of home furniture. The data obtained from New England give terms as cash discount is usually from 2 to 5 per cent, largely 1 per cent 10 days, net 30 days, while 10 or 20 days, with net terms of 30 to 60 days, in the North Carolina pine region a 2 per cent and carload lots carry a discount of from 3 to discount is more frequent, and at least half the 5 per cent. A tightening up of terms and demanufacturers now have net terms of 30 days, crease in the maximum cash discount period is without any discount, toward which there has reported during the past 5 to 10 years. The been a tendency in the last two years. A frepercentage of cash discounters appears higher quent exception to the regular terms, however, than for home furniture, several firms reporting is found in the case of canners, who, it is stated, as high as 95 per cent. endeavor to purchase their shook requirements Very few firms engaged in the manufacture considerably in advance of the season. Such of store fixtures at the present time give any terms are largely governed by the financial cash discount on their product, and only a few ability of the purchaser, and instances reported firms building special lines of fixtures still give from New England are the use of a 60-day a cash discount of from 2 to 5 per cent. The acceptance, as well as the payment of one-half standard terms in the industry are net 30 days, on arrival and the balance 6 months from date. and a very large proportion of the business is In the North Carolina pine region instances done on these standard terms. A great many reported are a 3 to 4 months' note and the sales are also made on the deferred-payment granting of from 2 to 6 months. On oil boxes plan. In this case an advance payment of for export in the latter region advances of 80 usually from 10 to 25 per cent is required, and per cent of the invoice price are made every 2 generally a total payment of from 25 to 50 per weeks. While many manufacturers report cent is required before the goods are actually that their collections are generally prompt, delivered. The total time given seldom, if ever, some report a considerable percentage as runexceeds 12 months. A large proportion of the ning past due. This varies largely according deferred-payment business does not carry over to the individual manufacturer, some stating, eight months' time, and many firms give no for example, that the canning trade they sell more than six months. buy practically everything on a discount basis. The amount of deferred-payment business has been gradually decreasing for several years, The great bulk of wooden shipping consales made on the standard terms having in- tainers—pails, tubs, and kits for such products creased correspondingly. Prior to 1913 a large as lard, candy, fish, preserves, paint, printers' proportion of the business was done on the ink, etc.—go in carload lots direct to the manudeferred-payment plan, two or three years' facturers of the products shipped in these contime often being given, and cash discounts were tainers. Terms on candy, fish, and jelly pails also very common. The practice of giving this are largely governed by the terms made by the long time, however, it is reported, has now been manufacturers and packers of these products. almost entirely discontinued, and the business For many years they have been 2 per cent 10 is stated to be on by far the best basis as to terms that it ever has been. 19 A set of boards in order for nailing together into a packing box and conveniently bundled for transportation. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

938 FEDERAL RESERVE BULLETIN. SEPTEMBER,, 1920. days, net 30 days, from date of invoice, but a wise are not standardized. It is stated that small percentage of candy pails carry a 1 per possibly 40 per cent of the output is sold on cent cash discount instead. Terms on lard terms of net 30 days, the balance usually beaitubs have been gradually shortened, the earlier ing a cash discount of 1 per cent or 2 per cent terms of 1 per cent 10 to 20 days, net 30 to 60 10 days in addition to the net terms, or being days, being displaced by terms of 1 per cent 10 sold on draft with bill of lading attached. days, net 30 days, and then by terms of net 30 Terms on this item have been shortened during days. At present most lard tubs are sold on the past decade. Thus it is stated that 10 terms of net 15 days, but a small percentage years ago almost all manufacturers granted a still bear terms of 1 per cent 10 days, net 30 cash discount of 2 per cent 10 days, while net days. Most of the other containers, such as terms in certain cases have been 60 days. The kits, bear terms of 1 per cent 10 days, net 30 by-product of face-brick plants, cull or comdays. While the majority of accounts are dis- mon brick, is usually sold in the immediate counted, it is stated that the cash discount locality of the plant upon terms which are in period frequently is not adhered to. line with those prevailing for other building materials in the same community. Terms of sale of hollow building tile, as prepared by the BRICK, TILE, REFRACTORIES, AND CEMENT. association and applied by leading manufac- Common brick is largely sold direct by the turers, are net 30 days, less freight allowance, manufacturer to the contractor or owner, subject to a cash discount of 5 per cent 15 days although in the smaller communities where from the delivered price. Efforts have been there are no brick plants distribution is made made during the past decade to obtain greater to some extent through building supply deal- uniformity in terms, and the employment of a ers or brokers. It has been estimated very 5 per cent discount in place of 2 per cent has roughly that 60 per cent of the output of face been one of the results. Sewer pipe, flue linbrick is sold to building-material dealers, who ing, and wall coping are sold largely on terms almost invariably sell direct to industrial con- of net 30 days, subject to a cash discount of 5 sumers. The larger portion of the output of per cent 10 days or 10th proximo after deducthollow building tile is sold by manufacturers ing freight. It is reported that considerably to building-material dealers, who then distrib- more than 90 per cent of the output of refracute them to consumers and contractors. Some tories is sold on terms of net 30 days or net large industrial consumers, however, purchase 15th proximo. Of the remaining 10 per cent direct from manufacturers. Practically the a negligible proportion is stated to carry a cash entire output of tile is sold direct by manufac- discount of 2 per cent 10 days, and a still turers to dealers or contractors, furniture and smaller proportion a cash discount of 1 per hardware dealers in many cases maintaining a cent 10 days. On contract work certain mantile department. It is stated that considerably ufacturers may employ other terms, such as, more than 90 per cent of the output of refrac- for example, 60 per cent on delivery of matetories, including fire clay, silicia, magnesite, and rial, 30 per cent during construction, and 10 bauxite brick and shapes, ganister, and dead- per cent 30 days after completion. While burned magnesite and dolomite, is sold direct some authorities report practically no change to the consumer, the balance being sold either in terms during the past decade, from other through engineers and contractors or through sources a tendency to eliminate cash discounts dealers. While the proportion of sales of ce- is noted, as well as to restrict the time taken ment made by manufacturers direct to con- to 60 days. Terms of sale of tile manufacsumers is stated to vary considerably among turers are 3 per cent 30 days, net 60 days, the various companies, data obtained from which terms have remained unchanged for the leading producers show figures ranging from East 20 years at least. Net terms for cement 10 to 20 per cent. ave been 30 days for many years, but the Terms of sale of common brick by manufac- cash discount has been increased during the turers vary greatly. Some of the larger and past decade. Prior to about the opening of more businesslike companies grant a regular 1916 it was 2 cents per barrel for payment cash discount which ranges from 2 per cent to 5 within 10 days from date of shipment, although per cent 10th e. o. m. In other localities, how- certain producers prior to 1914 gave only 1 ever, in particular in the far West, discounts as cent per barrel. In 1916 it was increased to 5 high as $1 per thousand have been granted for cents per barrel, due to the increase in the price bills paid within 30 days from shipment, while of the product, and this has been changed rein many cases a price differential of $1 is cently by certain producers to 10 cents per quoted as between cash and credit shipments. barrel, equivalent to a little less than 3 per Manufacturers7 terms of sale of face brick like- cent. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

SEPTEMBER, 1920. FEDERAL RESERVE BUIXETIN. 939 Inasmuch as the demand for common brick tious to approach the owner of a prospective has usually been below the output, and there building with respect to supplying goods which are about 1,700 producers, terms on common must be ordered from the East, as the conbrick have not been closely adhered to. It is tractor frequently postpones ordering so long estimated that fully 85 per cent of purchasers that delays intervene after the work has begun. of hollow building tile discount their bills. In In the West there is lacking that custom prethe tile industry it is estimated that 50 per vailing in the East under which contractors are cent of sales are discounted, 37J per cent are themselves financially responsible for the work paid within 60 days, and the remaining 12\ per as it progresses," the practice there being for cent become delinquent. As so large a pro- the contractor to make payments for materials portion of the output of refractories is sold to dependent on payments to him by the owner. large producers in the metallurgical industries, Regular terms of building-supply dealers are it is stated that manufacturers may be said to largely on a 30-day basis, the cash discount have a "preferred credit list" on all but a very being 2 per cent 10th, or in some cases 15th, small amount of their product. Leading ce- proximo, while net terms in certain cases are ment manufacturers report that from 80 to 85 60 days. In Atlanta, however, it is stated that per cent of their invoices are discounted, while all items other than cement, which carries a several report that from 10 to 15 per cent run discount, are sold on net 30-day terms. A tenpast due, averaging variously 45 and from 60 dency to closer terms is reported by some firms, to 90 days, although some manufacturers re- and decrease in the net period from 60-90 days, port only a negligible percentage running or longer, to 30 or in some cases 60 days. As beyond the 30-day period. stated by a leading New York firm, " 10 years Very limited use of the trade acceptance is ago most of the speculative builders paid by reported in all these industries. notes entirely, and these notes were extended from time to time until final payment was made BUILDERS1 SUPPLIES DEALERS. on the loan on the building. Due to advancing costs of the materials and also the handling of A leading authority estimates that roughly same, this method of payment was finally done about 60 per cent of building materials are away with. At the present time about 50 per sold by manufacturers to local dealers, while cent of our customers discount within 10 days the remaining 40 per cent are distributed from date of invoice (proximo terms are emdirect by the manufacturer. This is influenced ployed), 35 per cent paying cash in 30 days, largely by the location of plants. Practically and 15 per cent paying by note in either 30 or all mason's materials are stated to be sold 60 days, generally 30, and very rarely 60." through the local dealer, in particular in the The trade acceptance is little used by dealers, larger cities. When direct sales are made by while where notes are taken, part cash, such as the manufacturer, these occur generally in 50 per cent, may be required, and interest smaller outlying towns, but in some of the added. On the Pacific coast " contracts for larger cities, e. g., Philadelphia and Chicago, building materials customarily provide that the some items, such as hard brick, are sold direct vendor shall receive 75 per cent of the value by the manufacturers, their plants being lo- (figured on contract prices) of material delivcated in these cities. On the Pacific coast, ered and installed during any month, on the granite is almost universally quarried, cut and 10th of the succeeding month, and the remainplaced in the building by the same concern, ing 25 per cent within 30 days after completion without the intervention of jobbers and dealers, of the contract (i. e., formal acceptance of the but in the East and Middle West it is frequently building)." Overdue payments bear interest at the legal rate, while where work is done for quarried for sale to jobbers and dealers. the State payments each month are usually for "Building specialties" manufactured in the 90 per cent of the value. As a result of laxness East are first sold to coast jobbers, and by them in that section with respect to the cash discount to dealers or consumers. In the larger cities period, as well as the net period, there is stated the great bulk of building material is sold by to be a tendency to eliminate the cash discount. dealers to contractors rather than direct to The tendency during the past decade has been consumers, but in small towns the trade is rather toward stricter observance of existing frequently divided, while in farm trade practiterms, and the substitution of a net period of 30 cally all sales are made direct to the condays for one of 60 days, while the discount was sumer. In Atlanta it is estimated that possireduced about three years ago from 5 per cent bly 75 per cent of contracts are on a "cost perto 3 per cent and finally to 2 per cent, and paycentage" basis, the contractor placing the ment twice a month on "steamer days" has order to be billed direct to the owner. On the been abolished. Pacific coast it is stated to be "more expedi- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

940 FEDERAL RESERVE BULLETIN SEPTEMBER,, 1920. PAINT AND VARNISH. obtain dating on the many small orders placed during that period which were evidently for Both paints and varnishes in many cases are immediate consumption. produced by the same manufacturers, while The varnish industry in the past has been both are distributed largely through the same noted for long terms and for the looseness with jobbers, and a close relation exists between which even the prevailing terms were enforced. their use. Terms are therefore in large meas- During the last 10 years, manufacturers' terms ure similar, varnish terms tending to conform were generally reduced to 5 per cent 30 days, to those on paint. Of the total output of net 4 months. Within the last four or five paint, it is estimated that 60 per cent is sold by years these terms have been further reduced to manufacturers direct to industrial consumers, 2 per cent 10 days, net 60 days. These were such as manufacturing plants and railways, the prevailing paint terms, and many paint while 40 per cent is sold to wholesale and manufacturers were adding varnish plants, retail dealers and to painters direct. While it while conversely many varnish manufacturers has been stated that there has been an in- were commencing to manufacture paint. It is creasing tendency toward specialization, in estimated that at present 75 or 80 per cent of many cases there are very few exclusive paint the varnish sold to dealers carries these terms, jobbers, and glass or hardware is handled, while to manufacturing plants, railways, etc., many of these dealers being hardware jobbers the terms are shorter still. A general tendency or to a lesser extent wholesale druggists. The to sell on net terms is reported, as well as to largest distribution through the retail druggist shorten terms and make terms and discounts is stated to be in the Middle and Far West. more uniform. A considerable amount of while in the smaller cities of the East the whole- varnish, however, is still sold on the old 4 sale druggist must seek the consuming trade, months7 terms, in particular, it is believed, to and in the larger cities the trade is confined to the carriage trade. exclusive paint wholesalers, who may, how- Both the paint and varnish manufacturers' ever, handle glass and heavy oils to some associations approved the use of trade acceptextent. ances as far as possible, to be effective January Terms generally prevailing with paint manu- 1, 1919, but the instrument thus far has been facturers for many years have been 2 per cent used only to a very limited extent. 10 days, net 60 days. At the close of 1918 a Jobbers' terms, which have been in effect for resolution was adopted by the national asso- many years, are 2 per cent 10 days, net 60 days, ciation favoring a change in the terms to for varnish and mixed paints. White lead and dealers to 1 per cent 10 days, net 30 days, to be linseed oil bear terms of 1 per cent 10 days, net effective April 1, 1919. An effort was made by 30 days, changed in the case of white lead some of the larger houses to put these terms in since 1917, from 2 per cent 10 days, net 60 force, but the attempt was abandoned, as the days, and turpentine bears net 30 days. Dry general consensus of opinion proved to be paints are generally sold on terms of 1 per cent decidedly against the reduction. While hard- 10 days, net 30 days. ware jobbers were decidedly against such a change, which would bring the paint terms GLASS AND GLASSWARE. "out of line" with those on which they purchased the remainder of their merchandise, the Manufacturers of glass products sell largely terms have been favored for several years by to jobbers, who usually have an exclusive the wholesale druggists, whose standard pur- territory, and to consuming manufacturers in chasing and selling terms they are. In accord- other industries who use glass products. In ance with a recommendation made about a the case of bottles and jars, a large quantity is year previously, terms to manufacturers and sold to manufacturers of various food products, other industrial consumers are generally 1 per and it is estimated that from 75 to 90 per cent cent 10 days, net 30 days, in particular by the of the output is sold to industrial consumers, larger houses. Railroads, however, receive the balance distributing itself between wholenet cash terms, at least from the larger manu- salers and retailers. Plain prescription ware facturers. At the 1918 meeting it was also alone is sold to jobbers. Jobbers of plate and suggested that paint and varnish manufactur- window glass sell to contractors and manuers limit the practice of offering spring datings facturers of building-construction material as for orders placed in the fall for shipment during well as to retailers. Only a small amount of the fall and winter months (about Nov. 1 to glassware is sold direct to the retailer, the Feb. 1) to one complete stock order to be nature of the product limiting such sales to shipped at the option of the manufacturer cut glass, tableware, some light goods, and*a fter November 1, as dealers had expected to few specialties. A leading manufacturer sells a Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

SEPTEMBER, 1920. FEDERAL RESERVE BULLETIN. 941 about 75 per cent of his output of pressed and discount had been 2 per cent. Some manublown ware to wholesalers or manufacturers, facturers employ terms of 1 per cent 15 days, and 25 per cent to retailers, railroads, and net 30 days. Substantially 60 per cent of public utilities, the proportion varying with accounts are discounted, while of the remainder the individual products. It has been estimated 15 per cent run past due. Manufacturers of that 85 per cent of the output of cut glass is blanks for cut glass employ terms of 1 per cent sold to retailers, while the remaining 15 per 30 days, net 60 days. cent goes to wholesalers who buy rather the Manufacturers of ornamental glassware emcheaper grade of goods. Increased capacity ploy terms of 1 per cent 10 days, net 30 days. on the part of some manufacturers of glass- Formerly terms were 2 per cent 30 days, net 60 ware has reduced the operating period in cer- days. Practically the entire output is sold to tain lines to six and seven months. It is wholesalers, and the bulk of invoices are disstated that there has been a tendency to shift counted, but few running beyond the net period. the responsibility for stocking the product to The trade acceptance is not employed in the the manufacturer.20 majority of the branches of the industry, in The regular terms employed by plate-glass •particular for plate and window and cut glass. manufacturers, which have been in effect for Its use in connection with ornamental glass- 20 years or more, are 1 per cent 10 days, net ware is very limited, as is also the case with bot- 30 days. The bulk of sales are made to job- tle manufacturers. Certain of the latter grant bers who almost universally discount their bills. 60 days or 90 days in place of 30 days where the Manufactures of window glass on December acceptance is employed. A leading manufac- 5, 1916, adopted the same terms as were em- turer of pressed and blown glassware estimates ployed by plate-glass manufacturers, namely, that 4 per cent of his accounts (in amount, not 1 per cent 10 days, net 30 days. Prior to number) are covered by trade acceptances. that time terms were 2 per cent 10 days, net Jobbers or distributors of plate and window 60 days. Since the greater part of the output glass sell on terms of 1 per cent 10 days from is sold in carload lots to large jobbers who date of shipment, net 30 days. These terms distribute it to retailers and consumers along have been applied to plate glass for many with plate glass, rough-rolled glass and other years, and were applied about 4 years ago to flat-glass products, as well as paints and oils, window glass, following the similar change in the great bulk of manufactured invoices are manufacturers' terms from 2 per cent 10 days, discounted. Occasionally a customer desires net 60 days. It is stated that occasionally more than 30 days' time, and in such cases is contractors are permitted to pay 85 to 90 per usually charged interest at the rate of 6 per cent of the contract price by the 10th of the cent for the overtime, while notes, such as month for the preceding month's deliveries. for 60 or 90 days, may be taken. Trade acceptances are not generally used by Manufacturers of flint and lime glass (pressed distributors except in settlement for carload and blown ware) in January, 1916, adopted shipments. The proportion of bills discounted terms of 1 per cent 15 days, net 30 days, in varies from 20 to 55 per cent, the amount paid spite of strong opposition on the part of the at maturity from 20 to 60 per cent, and the jobbers. Prior terms were 2 per cent 30 days, amount running past due from 20 to 50 per net 60 days. Various estimates put the pro- cent. It is stated that 30 days past due is portion of bills discounted at from one-third about the limit allowed on overdue accounts. to two-thirds (in amount, not number), and the balance take from 30 to 45 or 60 days. Interest Rates in the New York Market. It is stated that tableware since 1916 has carried terms of 1 per cent 30 days, net 60 days. A table and two charts are presented show- For approximately the past 15 years the ing the interest rates on two classes of commerterms adopted by bottle manufacturers have cial paper and on demand loans in the New been 1 per cent 10 days, net 30 days. Prior York market, compared with the average terms were 2 per cent 10 days, net 60 days. discount rate charged by the New York Federal It is estimated that approximately 75 per cent Reserve Bank. The figures are based on of the invoices are discounted, while of the monthly data published in the FEDERAL remainder not over 5 per cent run past due. RESERVE BULLETIN. For 30 to 90 day and for Manufacturers of cut glass in December, 4 to 6 month commercial paper averages of the 1918, adopted terms of 1 per cent 30 days, high and low rates for each month are shown, net 60 days. Prior to that time the cash while the Federal Reserve discount rate is the actual average for all paper discounted during 20 Certain of the data in this paragraph have been taken from United each month by the Federal Reserve Bank of states Bureau of Fpreign and Domestic Commerce, Miscellaneous New York. Call-loan rates fluctuated so Series, No. 60. 9149°—20 4 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

942 FEDERAL RESERVE BULLETIN. SEPTEMBER, 1920. widely during the period and the margin be- Discount and interest rates in the New York market. tween the high and the low rate for the same month is so wide that the average was thought to be misleading, and the actual high and low ll rates are shown. In view of their much wider range a separate chart on a smaller scale is Period. shown for the call-loan rates. Commercial paper of the two classes used 11generally moved together and the ruling rate for most of the months was the same for the ™2 two classes. From March to July of this year, 1918 1918. however, the long-term paper carried a higher Oct. 16 to Nov. 15... \ ( N "O o c v to e b m er ber. , , 0 0 9 9 rate. Average rates of discount charged by Nov. 16 to Dec. 15... December.. .05 the Federal Reserve Bank of New York on all 1919. 1919. Dec. 16 to Jan. 15. January .07 discounts were about 1J per cent below the Jan. 16 to Feb. 15. February.. .03 market rate until November, 1919, when the Feb. 16 to Mar. 15. March .02 Mar. 16 to Apr. 15. 2t April ,03 Federal Reserve Board and the Federal Reserve Apr. 16 to May 15. May .03 May 16 to June 15. June ,04 Banks embarked upon the policy of raising June 16 to July 15. 10 July .06 discount rates. After that date the spread be- A Ju u l g y . 1 1 6 6 t t o o A S u ep g. t . 1 1 5 5 . 1 1 8 5 A Se u p g t u e s m t ber . . 0 0 5 4 tween the market rates and the Federal Reserve Sept. 16 to Oct. 15. 8 October... .03 Oct. 16 to Nov. W. 15 November .49 rate decreased rapidly and in March and April Nov. 16 to Dec. 15. 30 December. ,63 15 was about i per cent. Since then commercial 1920. 1920. rates have increased more rapidly than the Dec. 16 to Jan. 15. 25 January... 4.86 Jan. 16 to Feb. 15. 25 February. 5.42 Federal Reserve rate, although the margin Feb. 16 to Mar. 15. 15 March 5.53 Mar. 16 to Apr. 15. 15 April 5.48 narrowed somewhat when the Federal Reserve Apr. 16 to May 15. 15 May 5.56 Bank raised its rate on commercial paper to 7 J M u a n y e 1 1 6 6 t t o o J J u u n ly e 1 1 5 5 . . 1 1 2 5 J J u u l n y e 6 6 . . 1 2 9 5 per cent in May. July 16 to Aug. 15. 11 DISCOUNT AND INTEREST RATES INTHENEWYORKMARKET OCTOBER^ TOAU6USTJ920. RATES ON PRIME COMMERCIAL PAPER REFER TO .SO-DArPERlODSEIiDINeONTHEISmOFEACHMOtmi. FEDERAL RESERVE DISCOUNT KATES ARE 1 /IVERA6ES FOR CALENDAR MONTHS. . • i < flrcme (brnmercicrt 30fo90day3fyter t Coverage ofJfigK aitcLCbw$ates). (Jlverage cfJfigh,artd,/b*p&zCes)y ' ••———'JfverageJftate charged dy 8 7 6 S ? 4 3 Z 0 i % 1918 .NAJ \ .BEF / 1 |1 % YLUJ * \ %\% 1919 .BEF % YAM '/ 1 YLUJ INTEREST RATES 0NC4LL LOANS INTHENEWYORK MARKET OCTOBERJ9I8 TOAU6USTJ920. % RATES REFER TO SO-DAY'PERIODS ENDING ON THE IS™ OF EACH MONTH. % \ 30 28 26 24 22 8 20 18 6 J6 14 S 12 4 10 3 6 6 2 4 2 0 0 t 1920 TCO \ 1 .CED 1918 .NAJ 1 1 7 / *•• muj 1 1 1 fA i \\ f \ y 1 .TCO \I\ \ - % 1919 .BEF .MCM 1 \ \ / 1 \ .6UA 30 28 26 24 22 20 18 16 14 12 10 8 e 4 2 0 1920 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

943 SEPTEMBER, 1920. FEDERAL RESERVE BULLETIN. Low rates on call money have fluctuated or about 225 millions in excess of the July between 3| and 6 per cent, while high rates forecast. Only once in the history of the have been as low as 6? per cent and as high United States has corn production been larger as 30 per cent. The highest peaks reached by than this year's latest forecast, the record crop call money rates are shown for midsummer 1919 of 1917 being estimated at 3,065 million bushwhen speculation reached its climax, for els. Prospects of wheat production, on the October of the same year, when the stringency other hand, are not quite so bright as in July, following overexpansion was most acute, and owing to the fact that spring wheat in the for the early months of 1920 when heavy Minneapolis district has suffered from rust. liquidation on the stock exchange created The forecast for total wheat production is 794 an exceptional demand for money. million bushels, comparable with 941 millions estimated in 1919, and a five-year average of 832 millions. Prospects of the oats crop were August Crop Report, by Federal Reserve considerably better in August than in July, Districts. and the hay forecast rose from 85 million tons Forecasts of crop production issued by the in July to 107 millions in August. Bureau of Crop Estimates, United States De- The cotton crop is expected to reach 12J partment of Agriculture, as of August 1, 1920, million bales, exceeding the production of any are shown in the table below, together with year since 1914, when more than 16 million the forecasts made as of July 1 and estimates bales of cotton were raised. Average cotton of production in 1919. For average figures for production for the five-year period, 1915-1919, the years 1915-1919, see FEDERAL RESERVE was 11,403,000 bales, so that this year's fore- BULLETIN, July, 1920, page 832. cast is more than 1,000,000 bales above the Corn production, according to the August average production for the past five* years. forecast, is expected to be over 3 billion bushels, Production of corn, wheat, cotton, oats, and hay, by Federal Reserve districts—Aug. 1,1920, forecast of the Bureau of Crop Estimates. [In thousands of units of measurement.] Corn (bushels). Total wheat (bushels). Winter wheat (bushels). Spring wheat (bushels). Federal Reserve district. f f A o o r r u e g c 1 . a 9 1 s 2 t 0 , . f f o J o u r r e l 1 y c 9 a 1 2 s 0 , t . E fo s r t im 19 a 1 t 9 e . f f A o o r r u e g c 1 . a 9 s 1 2 t 0 , . f f o J o u r r e l 1 y c 9 a 1 2 s 0 , t . E fo s r t im 19 a 1 t 9 e . f f A o o r r u e 1 g c 9 . a 2 s 1 0 t , . f f o J o u r r e ly c 1 a 9 1 s 2 , t 0. E fo s r t i 1 m 91 a 9 te . f f A o o r r u e g c 1 . a 9 s 1 20 t , . f f o J o u r r e ly c 1 a 9 1 s 2 , 0 t . E fo s r t im 19 a 1 t 9 e . Boston 7,081 7,055 10,276 463 456 463 456 New York" 34,223 34,729 41,089 11,816 11,546 12,493 11,094 10.890 11 722 656 750 Philadelphia 57,153 55,446 66,444 23,838 24,269 25,922 23,510 23,945 25, 328 324 316 Cleveland 198,893 187,846 212,297 34,633 34,788 63,748 34,027 34,217 62, 606 571 1,034 Richmond 190,672 180,805 188,994 37,613 35,891 37,094 37,613 35.891 37, Atlanta 253,202 230,761 240,315 6,614 6,676 10,326 6,614 6,676 10' Chicago 891,552 859,627 927,852 65,345 65,803 112,202 49,471 50,018 93: 15,874 15,785 19,140 St. Louis 438,887 398,851 380,722 54,774 55,837 108,022 53,885 55,004 107: 889 833 1,001 Minneapolis 245,420 241,114 242,363 183,197 209,535 135,094 7,185 8,379 5 176,012 201,156 129,337 Kansas City 483,172 402,781 372,870 261,226 245,270 300', 994 241,464 224,357 284' 19,762 20,913 16,463 Dallas 193,853 170,709 225,743 15,184 16,285 33,605 14,406 15, 504 32 778 781 898 San Francisco 9,214 9,179 8,485 99,444 103,244 101,008 53,372 53,364 61 46,072 49,880 39,933 Total 3,003,322 2,778,903 2,917,450 794,147 809,600 940,9 532,641 518,245 731,636 261,506 1 291,355 209,352 Cotton (bales). Oats (bushels). Hay, tame and wild (tons). Federal Reserve district. f f A o o r r u e g c 1 . a 9 s 2 1 t 0 , . f f J o o u r r e ly c 1 a 9 1 s 2 , 0 t . E fo s r t im 19 a 1 t 9 e . f f A o o r r u e g c 1 . a 9 1 s 20 t , . f f o J o u r r e l 1 y c 9 a 1 2 s 0 . t . E fo s r t i 1 m 91 a 9 te . f f A o o r r u e 1 g c 9 . a 2 1 s 0 t , . f f o J o u r r e i 1 y c 9 a 2 1 s 0 , t . E fo s r t im 19 a 1 t 9 e . Boston 13,433 12,600 12,123 4,339 4,160 4,912 New York 44,619 42,149 31,856 6,058 5,664 7,073 Philadelphia... 2o,807 24,742 23,214 3,168 2,939 3,155 Cleveland , 82,061 71,522 70,279 6,011 5,463 6,089 Richmond 2,190 2,079 2,372 27,530 26,826 26,397 4,540 4,088 4,916 Atlanta , 2,990 2,751 2,816 28,128 29,101 29,008 4,494 4,194 4,272 Chicago 530,141 484,323 461,082 17,185 15,899 18.629 St. Louis 2,173 1,906 1,789 17, 508 67,302 63,595 7,658 7,117 8] 124 Minneapolis 289,219 289,700 208,857 18,831 9.054 17,245 Kansas City .. 860 832 198,783 186,366 182,677 20,257 13,367 19,907 Dallas 4,081 3,779 3,097 44,561 41,419 99,004 1,792 1,419 2,309 San Francisco.. l187 180 1,117 46,274 46,015 40,219 12,933 11,449 12,035 Total. 2 12,518 a 11,566 9 11,030 1,402,064 1,322,065 1,248,311 107,266 84,813 108,666 1 In addition the following amounts were estimated grown in Lower California (Mexico): Aug. 1, 1920, forecast, 93,000 bales; July 1, 1920 forecast, 91,000 bales; estimate for 1919, 52,000 bales. 2 Cotton grown outside of cotton belt included as follows: Aug. 1 1920, forecast, 12,000 bales July 1,1920, forecast, 11,000 ba es; estimate lor 1919, 8,000 bales. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

944 FEDERAL RESERVE BULLETIN. SEPTEMBER, 1920. Foreign Branches. BANKS DOING BUSINESS UNDER AGREEMENT WITH THE FEDERAL RESERVE BOARD. There is given below a list of foreign branches American Foreign Banking Corporation, New York City: of national banks and of banks doing business Brussels, Belgium. under agreement with the Federal Reserve Buenos Aires, Argentina. Cali, Colombia. Board which were open for business on August Cristobal, Canal Zone. 18, 1920: Harbin, Manchuria- NATIONAL BANKS. Havana, Cuba. La Vega, Dominican Republic. National City Bank, New York City: Manila, Philippine Islands. Buenos Aires, Argentina. Panama City, Republic of Panama, Plaza Once, Buenos Aires, Argentina. Puerto Plata, Dominican Republic- Rosario, Argentina. Port-au-Prince, Haiti. Brussels, Belgium. Rio de Janeiro, Brazil. Antwerp, Belgium. Sanchez. Dominican Republic. Bahia, Brazil. San Francisco de Macoris, Dominican Republic. Pernambuco, Brazil. San Pedro de Macoris, Dominican Republic. Porto Alegre, Brazil. San Pedro Sula., Republic of Honduras. Rio de Janeiro, Brazil. Santiago de Los Caballeros, Dominican Republic. Santos, Brazil. Santo Domingo, Dominican Republic. Sao Paulo, Brazil. Mercantile Bank of the Americas (Inc-), New York City: Barranquilla, Colombia. Paris, France. Bogota, Colombia. Barcelona, Spain. Medellin, Colombia. Madrid, Spain. Santiago, Chile. Affiliated institutions— Valparaiso, Chile. Banco Mercantil Americano de Colombia— Artemisa, Cuba Bogota, Barranquilla, Cartagena, Medellin, Cali, Bayamo, Cuba. Girardot, Manizales, Honda, Armenia, Bucara- Caibarien, Cuba. manga, and Cucuta, Colombia. Camaguey, Cuba. Banco Mercantil Americano del Peru— Cardenas, Cuba. Lima, Arequipa, Chiclayo, Callao, Trujillo, and Ciego de Avila, Cuba. Piura, Peru. Cienfuegos, Cuba. Banco Mercantil Americano de Caracas— Colon, Cuba. Caracas, La Guayra, Maracaibo, Puerto Cabello, Cruces, Cuba and Valencia, Venezuela. Cuatro Caminos, Habana, Cuba. American Mercantile Bank of Brazil— Galiano, Habana, Cuba. Para and Pernambuco, Brazil. Guantanamo, Cuba. National Bank of Nicaragua— Habana, Cuba. Managua, Bluefields, Leon, and Granada, Nica- Manzanillo, Cuba. ragua. Matanzas, Cuba. Banco Mercantil Americano de Cuba— Nuevitas, Cuba. Havana and Ciego de Avila, Cuba. Pinar del Rio, Cuba. Banco Mercantil de Costa Rica— Placetas del Norte, Cuba. San Jose, Costa Rica. Remedios, Cuba. Banco Atlantida— Sagua la Grande, Cuba. La Ceiba, Tegucigalpa, San Pedro Sula, Puerto Sancti Spiritus, Cuba. Cortez, and Tela, Honduras. Santa Clara, Cuba (A branch office is also maintained by the Mer- Santiago, Cuba cantile Bank of the Americas (Inc.) in New Union de Reyes, Cuba. Orleans, La.) Yaguajay, Cuba. Asia Banking Corporation, New York City: Genoa, Italy Canton, China. Lima, Peru. Changsha, China. San Juan, Porto Rico. Hankow, China. Ponce, Porto Rico Hongkong, China. Barcelona, Spain. Manila, Philippine Islands, Madrid, Spain. Peking, China. Cape Town, South Africa. Shanghai, China. Port of Spain, Trinidad. Tientsin, China. Calle Rondeau, Montevideo, Uruguay. International Banking Corporation, New York City: Montevideo, Uruguay Canton, China. Caracas, Venezuela. Hankow, China. Ciudad Bolivar, Venezuela. Harbin, China. Maracaibo, Venezuela Hongkong, China. Temporarily closed— Peking, China. Moscow, Russia. Shanghai, China. Petrograd, Russia. Tientsin, China. First National Bank, Boston, Mass.• Tsingtao, China. Buenos Aires, Argentina. London, England. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

SEPTEMBER, 1920. FEDERAL RESERVE BULLETIN. 945 International Banking Corporation—Continued. Lyons, France. Capital. Surplus. Total Bombay, India. Calcutta, India. Rangoon, India. District No. 7. Yokohama, Japan. Kobe, Japan. Farmers & Merchants State Bank, Seneca, Wis $25,000 $15,000 $535,862 Batavia, Java. State Bank of Cowden, Cowden, 111 25,000 10,000 333,543 Sourabaya, Java. First Trust & Savings Bank, Rock Panama, Republic of Panama. Island, 111 100,000 25,000 554,198 Greenfield Savings Bank, Greenfield, Colon, Republic of Panama. Iowa 30,000 5,000 404,159 Cebu, Philippine Islands. Taylor County State Bank, Clearfield, Manila, Philippine Islands. Iowa 25,000 5,000 173,919 25,000 25,000 451,761 Singapore, Straits Settlements. Van Wert State Bank, Van Wert, Iowa. Santo Domingo, Dominican Republic. District No. 10. Sanchez, Dominican Republic. San Pedro de Macoris, Dominican Republic. First Bank of Okarche, Okarche, Okla. 50,000 15,000 610,683 Santiago, Dominican Republic. Barahona, Dominican Republic. District No. 11. 50,000 25,000 257,300 Puerta Plata, Dominican Republic. Texas State Bank, Canton, Tex 30,000 16,000 137,081 (A branch office is also maintained by the Inter- First State Bank, Mathis, Tex 100,000 35,000 624,830 national Banking Corporation in San Francisco, First State Bank, Wills Point, Tex.... Calif.) District No. 12. Park-Union Foreign Banking Corporation, New York City: British American Bank, San Fran* Paris, France. Cisco, Calif 1,000,000 10,000 3,225,809 Bank of Haines, Haines, Oreg 25,000 5,000 338,682 Shanghai, China. Lincoln County State Bank, Daven- Tokyo, Japan. port, Wash 50,000 10,000 561,289 Yokohama, Japan. (Branch offices are also maintained in San Francisco, Calif., and Seattle, Wash., by the Park- "WITHDRAWALS. Union Foreign Banking Corporation.) The First National Corporation, Boston, Mass., has The Elmhurst State Bank, Elmhurst, 111., and the North Side State opened no foreign branches. A branch office of this cor- Savings Bank, Chicago, 111., have withdrawn from membership. poration is maintained at 14 Wall Street, New York City. The Shawmut Corporation of Boston, Mass., has opened no foreign branches. A branch office of this corporation is maintained at 65 Broadway, New York. Acceptances to 100 Per Cent. The French American Banking Corporation of New York City and the Foreign Credit Corporation of New York Since the issuance of the August BULLETIN the following City have opened no foreign or domestic branches. banks have been authorized by the Federal Reserve Board to accept drafts and bills of exchange up to 100 per cent of their capital and surplus: The First National Bank, New Haven, Conn. State Banks and Trust Companies Admitted. Dallas National Bank, Dallas, Tex. The First National Bank, Los Angeles, Calif. The following list shows the State banks and trust companies which have been admitted to membership in the Federal Reserve System during the month of August, 1920. One thousand four hundred and seventeen State institu- Commercial Failures Reported. tions are now members of the system, having a total capital of $496,789,578, total surplus of $491,409,950, and Continuance of a tendency toward increase in the countotal resources of $9,853,495,006. try's business mortality is reflected in the 459 commercial failures reported to R. G. Dun & Co. during three weeks of August, as against 318 defaults in the corresponding Total period of 1919. Exclusive of banking suspensions and personal bankruptcies, the statement for July, the latest month for which complete statistics are available, discloses District No. 2. 681 insolvencies for $21,906,412 of liabilities, the number Bank of Blasdell, Blasdell,-N. Y $30,000 $10,500 $41,449 of reverses being the largest of any month since December, 1918, and the indebtedness the heaviest of all months District No. S. back to January, 1916, excepting the $32,990,965 of June, Oxford Bank of Frankford, Philadel- this year. The July statistics contrast sharply with the phia, Pa 250,000 55,000 1,898,020 low-record total of 452 failures of July, 1919, when the Peoples Bank, Philadelphia, Pa 200,000 25,000 3,775,508 amount of money involved barely exceeded $5,500,000. District No. 4. Separated according to Federal Reserve districts, the July returns show more defaults than in that month last year American Trust & Savings Bank of in 10 of the 12 districts, the exceptions being the eighth Middletown, Middletown, Ohio 100,000 20,000 2,283,004 district, where some falling off appears, and the sixth District No. 5. district, where no change at all is revealed. In respect of the liabilities, decreases from the July, 1919, figures are State Bank of Kenbridge, Kenbridge, Va 25,000 , 8,000 245,424 shown only by the sixth and eighth districts. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

946 FEDEKAL RESERVE BULLETIN. SEPTEMBER, 1920. Failures during July. DISTRICT NO. 3. Trustee, executor,administrator, registrar of stocks and bonds, guardian of estates, assignee, receiver, and committee of estates of lunatics: Number. Liabilities. Woodstown National Bank, Woodstown, N. J. Guardian of estates, assignee, receiver, and committee of estates of Districts. lunatics: The National Bank of Boyertown, Boyertown, Pa. 1920 1919 1920 1919 DISTRICT No. 4. First 48 45 $470,259 $320,069 Trustee,executor, administrator, registrar of stocks and bonds, guardian Second 172 79 11 438 511 1,836,523 of estates, assignee, receiver, and committee of estates of lunatics: Third 29 28 755,711 315,061 Bell National Bank, Pineville, Ky. Fourth 54 44 921,988 247,384 The Grove City National Bank, Grove City, Pa. Fifth 39 17 1,995,634 316,282 Sixth 32 32 443,135 486,668 Seventh 70 51 2,417,401 375,494 DISTRICT NO. 5. Eighth 28 44 96,040 240,812 Trustee, executor, administrator, registrar of stocks and bonds, guardian Ninth 14 6 238,471 67,687 of estates, assignee, receiver, and committee of estates of lunatics: Tenth 34 21 548,910 201,188 Western National Bank of Baltimore, Baltimore, Md. Eleventh 41 23 1,148,614 261,727 Guardian of estates, assignee, receiver, and committee of estates of luna- Twelfth 120 62 1,431,738 838,115 tics: First National Bank of Danville, Danville, Va. Total 681 452 21,906,412 5,507,010 DISTRICT NO. 6. Trustee,executor, administrator, registrar of stocks and bonds, guardian New National Bank Charters. ofestates, assignee, receiver, and committee of estates of lunatics: The First National Bank of Oxford, Oxford, Ala. The Comptroller of the Currency reports the following DISTRICT No. 7. increases and reductions in the number and capital of Trustee, executor, administrator, registrar of stocks and bonds, guardian national banks during the period from July 31 to August 27, ofestates, assignee, receiver, and committee ofestates of lunatics: 1920, inclusive: Union National Bank, Muskegon, Mich. Calumet National Bank of Chicago, Chicago, 111. Banks. Perry National Bank, Perry, Iowa. New charters issued to 24 First National Bank of Viroqua, Viroqua, Wis. With capital of $2,120, 000 The First National Bank of Clay City, Clay City, Ind. The First National Bank of Edgerton, Edgerton, Wis. Increase of capital approved for 36 With new capital of 8, 735, 000 DISTRICT NO. 9. Aggregate number of new charters and Trustee, executor, administrator, guardian of estates, assignee, and banks increasing capital 60 committee ofestates of lunatics: With aggregate of toew capital authorized 10, 855, 000 First National Bank of Little Falls, Little Falls, Minn. Number of banks liquidating (other than DISTRICT NO. 10. those consolidating with other national Trustee, executor, administrator, registrar of stocks and bonds, guardian banks under the act of June 3, 1864)... 3 ofestates, assignee, receiver, and committee ofestates of lunatics: Capital of same banks 275, 000 First National Bank of Gunnison, Gunnison, Colo. Number of banks reducing capital 0 Reduction of capitall 125, 000 Total number oi banks going into liquidation or reducing capital (other than those Principal Books and Articles Relating to Banking and consolidating with other national banks Currency Received at the Federal Reserve Board under the act of June 3, 1864) 3 Library During the Month Ending August 15, 1920. Aggregate capital reduction 400, 000 Consolidation of national banks under the Anderson, Benjamin McAlester. actof Nov. 7, 1918 2 The Fallacy of "the stabilized dollar." 1920. 16p. Capital 200, 000 Bankers trust company, New York. America's merchant marine; a presentation of its history and devel- The foregoing statement shows the aggre- opment to date with chapters on related subjects. 1920. 257p. gate of increased capital for the period of Berges, Maurice. the banks embraced in statement was 10, 855, 000 La probleme mon&aire et fiduciaire, par Maurice Berges et Frederic Besson. 1918. 164p. Against this there was a reduction of capi- Federal reserve bank of San Francisco, eomp. tal owing to liquidation (other than for 'Directory of banks in twelfth federal reserve district, June, 1920. consolidation with other national banks 1920. 46p Foote. Lewis A. under the act of June 3, 1864), and re- The Adap-table system; a practical and economic solution of the ductions of capital of1 400,000 aecrual accounting problem. cl920. 2 v. Godfrey, Carlos Enxmor. The Mechanics bank, 1834-1919, Trenton in New Jersey; a history. Net increases 10, 455,000 1919. 164p. Guaranty trust company of New York. 1 Includes two reductions in capital aggregating $125,000 incident to Hua G rt r , e A at l e b r i n F . rance- C1920. 28p. consolidations under Act of November 7, 1918. Etude compare des principaux systemes de banque; Porganisation du credit en France. 1913. 351p. International economic conference, London. 1919. The famine in Europe, the facts and suggested remedies; being a report of the International economic conference, called by the Fiduciary Powers Granted to National Banks. Fight the famine council, and held at Caxton hall, Westminster, London, on the 4th, 5th, and 6th of November, 1919, by Lord Parmoor, Sir George Paish, . . . and others. 1920. 126p. The applications of the following banks for permission to Kahn, Otto Hermann. act under section 11-k of the Federal Reserve Act have O ur economic and other problems; a financier's point of view. cl920. been approved by the Board during the month of August, 420p. Page, H. M., corny) 1920: Chart of money and discount rates in London during the year 1919, DISTRICT NO. 2. comp. by Page and Gwyther. 1920. Paine, William Worship. Trustee, executor, administrator, registrar of stocks and bonds, guardian Short papers on—1. A Capital levy as a means of taxation. 2. The of estates, assignee, receiver, and committee of estates of lunatics: Present unrest in industry. 3. Capital and labour 4 The The Exchange National Bank of Olean, Olean, N. Y. Nationalization of industry. 1920. 47p. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

SEPTEMBER, 1920. FEDERAL RESERVE BULLETIN. 947 P&ellat, Henri. BANK REPORTS, 1919 AND 1920. . Bourse et justice. 1918. Banco do Brasil, Rio de Janeiro. Pogliani, A Relatorio . . . apresentado a assembles, geral dos accionistas . .. 29 Abril de 1920. The financial, industrial and political situation in Italy: an address Bank of New Zealand, Wellington. [May 27, 1920]. 1920 lip Annual report ... for the year ended 31st March, 1919, and report Raabe, Adam. of proceedings at the annual meeting of proprietors . . . The German republic; economic position and potentialities with Barclays bank (ltd.), London. Report of the directors . . . 31st December, 1919, and 30th June, special reference to foreign exchange and investment, by A. Raabe 1920. and F. Glissman. cl920. 32p. Lloyds bank (ltd.), London. Railway clearing house, London. Report of the directors ... at the 62d ordinary general meeting . .. The New railway rates; how they affect the cost of living. 1920. 8p. 3 February, 1920. Roumania. Some details regarding its history, growth, system of gov- Soctete' gene"rale pour favoriser le developpement du commerce et de ernment, financial resources, etc. 1919. 15p. FIndustrie en France, Paris. Strakosch, Henry. . . . Rapport du conseil d'administration, exercice 1919. The South African currency and exchange problem. 1920. 34p. Other bank reports, 1919.—National bank of Scotland, Edinburgh. Na- Swiss bank corporation, Basel. tional bank of South Africa (ltd.), Pretoria. National provincial and union bank of England (ltd.), London. Nederlandsche handel- [Graphique des changes Grangers en bourse de Geneve.] 1920. maatschappij, Amsterdam. Royal bank of Scotland, Edinburgh Swiss bank corporation, Basel. Yokohama specie bank (ltd.), Yokohama. Renseignements divers sur les valeurs cotees a la bourse de Geneve: Other batik reports, 1920.—Bank of Scotland, Edinburgh. National cours extreme, derniers prix, dividendes, etc. 1912-1919. 1920. bank of South Africa (ltd.), Pretoria. Union bank of Scotland (ltd.), 75p. Glasgow. Yokohama specie bank (ltd.), Yokohama. Warfield, S. Davies. Address on occasion of organization of the National conference of NEW PERIODICALS. mutual savings banks at Boston, April 23, 1920. 1920 14p. Import and export trade: Foreign edition of "In- en Uitvoer," a Dutch weekly of commerce and economics. Jahrbiicher fur gesetzgebung, verwaltung und volkswirtschaft. (Schmoller) Lpz. (Quarterly.) Australia. Treasurer's department. South American journal. London. . . Statement of receipts and expenditure for the nine months ended 31st March, 1920 ERRATA, Belgium. Ministere de Tinterieur. Page 871 of August (1920) Bulletin: In table Annuaire statistique de la Belgique . . 44e. ann6e—1913. Economisch-historisch jaarboek. Uitg. door de vereeniging het Neder- showing rediscount operations between Federal landsch economisch-historisch archief gevestigd to 's-Gravenhage . .. Reserve Banks, the amount, 45,000, appearing 1916-1919. 5 v. Great Britian. India office. in the May column under Richmond should . . . Statistical abstract relating to British India . . 53d num have been shown opposite Cleveland instead ber . . . (1917-18). of New York; in the April column under St. India. Statistical department. .. . Statistical tables relating to banks in India, with a map, in- Louis the figures shown opposite Boston and troductory memorandum, and banking directory: 1918. New York should have been 22,000 and 23,000, Moody, John. respectively, instead of 30,000 and 15,000 as Moody's analyses of investments- Part 2 industrial investments . . eleventh year 1920. published. North Carolina. Corporation commission. The headline over the tatfle at the top of ... Reports of the condition of the state banks at the close of busipage 775 of the August Bulletin should read ness on Dec. 31, 1919 . . . Rumania. Directiunea generala a statisticei. uin millions of dollars'' instead of "in thou- . . . Anuarul statistic al Romaniei, 1915-16. sands of dollars." Sverjges riksbank, Stockholm. Arsbok utarbetad av riksbankens statistiska avdelning Arg. 12- [1919]. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

948 FEDEKAL RESERVE BULLETIN. SEPTEMBER, 1920. RULINGS OF THE FEDERAL RESERVE BOARD. Clayton act as applied to private bankers. than two national banks which are not in sub- The question has been presented as to stantial competition with such private banker whether the recent amendment of May 26, or with each other. Furthermore a logical 1920, to the Clayton Antitrust Act authorizes construction of the act as amended requires a private banker, with the consent of the the same conclusion. Federal Reserve Board, to serve as an officer It is the view of the Board, therefore, that or director of national banks or whether the a private banker may with the permission of effect of the amendment is merely to authorize the Federal Reserve Board, serve as director a private banker, with the consent of the or officer of not more than two national banks Federal Reserve Board, to serve foreign bank- which are not in substantial competition with ing corporations. the private banker or with each other. The amendment of May 26, 1920, amended the second paragraph of section 8 of the Clayton Antitrust Act by inserting certain Collection of bill of lading drafts received from nonmemwords in the proviso at the end of that para- ber bank for account of member bank. graph. This proviso was originally enacted Inquiry has been made as to whether country by the act approved May 15, 1916, known as bank correspondents of a member bank may, the Kern amendment. As amended by the with the authorization of the member bank, act approved May 26, 1920, the proviso reads: send bill of lading drafts direct to the Federal And provided further, That nothing in this act shall pro- Reserve Bank for collection and credit to the hibit any private banker or any officer, director, or em- member bank's account. The country bank ployee of any member bank or Class A director of a Federal correspondents referred to are not members of reserve bank, who shall first procure the consent of the the Federal Reserve System and do not carry Federal Reserve Board, which Board is hereby authorized at its discretion, to grant, withhold, or revoke such con- clearing accounts with any Federal Reserve sent, from being an officer, director, or employee of not Bank. more than two other^banks, banking associations, or trust There is no provision of law authorizing a companies, whether organized under the laws of the United Federal Reserve Bank to receive items for de- States or any State, if such other bank, banking association or trust company is not in substantial competition posit or collection from banks which are not with such banker or member bank. members of the Federal Reserve System and The words in bold face are those which were which do not carry clearing accounts with the inserted by the amendment of May 26, 1920. Federal Reserve Bank. Section 13 of the Fed- Under the terms of the Clayton Act no pri- eral Reserve Act, however, provides that a vate banker with aggregate resources in excess Federal Reserve Bank may receive on deposit of $5,000,000 is eligible to serve as a director from any of its member banks checks and of any national bank, and no private banker, drafts payable upon presentation and may regardless of the amount of aggregate re- receive for collection from any of its member sources, is eligible to serve as a director, offi- banks maturing notes and bills. Under this cer, or employee of any national bank located provision it would be legal for a Federal Rein a city of more than 200,000 inhabitants, if serve Bank to receive direct from a bank, even his business is located in the same city. Prior though that bank is not a member and does to the amendment of May 26, 1920, the Federal not maintain a clearing account, checks and Reserve Board was without authority to grant drafts or maturing notes and bills sent for the private bankers located in a city of more than account of a member bank, provided the Fed- 200,000 inhabitants permission to serve as eral Reserve Bank has received satisfactory directors or officers of national banks located notice from the member bank that the member in the same city, nor to grant to private bankers bank has authorized the sending bank to act having resources in excess of $5,000,000 permis- as the agent of the member bank in forwarding sion to serve as directors or officers of any the items for the member bank's account. national bank wherever located. A somewhat similar arrangement has been The Board's opinion based upon the history approved whereby a member bank in one Fedof the amendment of May 26, 1920, is that it eral Reserve district may send maturing notes was clearly intended to give to the Board and bills direct to a Federal Reserve Bank of authority to grant to a private banker permis- another district for collection and credit to the sion to serve as a director or officer of not more account of the Federal Reserve Bank of the Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

SEPTEMBER, 1920. FEDERAL RESERVE BULLETIN. 949 district in which the sending bank is located, the requirements of the law and of the Federal although there is no provision of law which Reserve Board's regulations. authorizes a Federal Reserve Bank to receive Where a note of an irrigation company is such items from a member bank located out- offered for rediscount as agricultural paper, the side of its own district. (See ruling on page note having a maturity in excess of three 276 of March, 1920, BULLETIN.) months but less than six months, and the The notice from the member bank to the re- irrigation company owning and operating both ceiving Federal Reserve Bank that the mem- an irrigation system and a rice farm, the ber bank has authorized its correspondent to Federal Reserve Bank must be satisfied that forward items direct to the Federal Reserve the proceeds of the particular note have been Bank for the account of the member bank in fact used for an agricultural purpose in conshould, in the case under consideration, be nection with the rice farm, as distinguished specific—that is, it should name the particular from a commercial purpose in connection with correspondent or correspondents of the mem- the delivery and sale of water to farmers ber bank which are so authorized. Bill of through the irrigation system. Of course, the lading drafts drawn upon individuals, firms, or fact that the note bears upon its face a statecorporations other than banks are not " checks ment to the effect that the purpose for which and drafts" within the meaning of section 13 the proceeds have been or are to be used is an of the Federal Reserve Act, and should not, agricultural purpose need not be taken by the therefore, be received by a Federal Reserve Federal Reserve Bank as conclusive. Bank, except for collection and credit when paid. It should be understood, of course, that a Federal Reserve Bank may at its discretion Real estate loans by national banks exercising trust powers. decline to receive for collection bill of lading The Federal Reserve Board has received an drafts forwarded to it by a member bank inquiry as to whether a national bank, after through the agency of the member bank's corqualifying under section ll(k) of the Federal respondents which are not themselves mem- Reserve Act to exercise fiduciary powers, may bers and which do not maintain clearing acengage in any business which a State trust comcounts. pany may carry on under the laws of the same State. Paper of irrigation company. The Federal Reserve Board is of the opinion The question has been presented as to whether that under section 11 (k) of the Federal Reserve water sold by an irrigation company to farmers Act national banks which have duly qualified and delivered through the company's irrigation may act in those capacities specifically enumditches should be classed as a " commodity" erated in that section and in any other fiduciary and whether the notes of such an irrigation capacity in which competing trust companies company may be considered commercial paper. in the same State are permitted to act. The This question is very similar to the question of Board does not believe that national banks whether natural gas sold and delivered may be can exercise any nonfiduciary powers merely considered "goods sold" within the meaning because competing trust companies are perof the Board's regulation defining a trade ac- mitted to exercise those powers under the laws ceptance. Upon this question the Board ruled of a particular State. affirmatively in a ruling dated April 23, 1918, Section 24 of the Federal Reserve Act published in the BULLETIN for May, 1918, on authorizes a national bank which is not located page 435. The Federal Reserve Board is of the in a central reserve city to make loans secured opinion that water actually sold and delivered by improved and unencumbered farm lands by an irrigation company to farmers who have situated within its Federal Reserve district contracted with the company for its delivery or within a radius of 100 miles of the place in may be considered "goods sold"; or, in other which such bank is located, irrespective of words, that the sale of water in this manner is district line, and also to make loans secured a commercial transaction. Consequently the by improved or unencumbered real estate Board is of the opinion that a note of the located within 100 miles of the place in which irrigation company, the proceeds of which have such bank is located, irrespective of district been or are to be used for pay roll or other lines, and imposes certain limitations as to the current purposes in connection with the dis- maturities and amounts of such loans. The tribution of the water to the farmers, is eligible provisions of this section are controlling upon for rediscount by a Federal Reserve Bank, all national banks, irrespective of whether or provided that the note otherwise complies with not they have qualified under section ll(k) Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

950 FEDERAL RESERVE BULLETIN". SEPTEMB&R, 1920. to exercise fiduciary powers, and no national the particular trust in so far as the investment bank may loan its own funds upon the security of trust funds is concerned. It is the opinion of farm lands or real estate except upon the of the Federal Reserve Board that under the conditions and subject to the limitations im- terms of paragraph VI of Regulation F, series posed by section 24. The Federal Reserve of 1919, where a national bank is acting as Board knows of no provision of law which trustee for a third person of funds which, under would permit a national bank to create a the terms of the instrument creating the trust, special trust fund in its trust department for may be invested in loans secured by farm lands the benefit of itself, and certainly a national or real estate, the national bank may invest bank should not be permitted, by means of any those funds in such loans on farm lands or real such indirect method, to use its own assets in a estate, and in such amounts, as a State trust manner which would be in violation of law if company would be authorized to make under done directly without the intervention of the the laws of that State, if it were acting as trust department. trustee under the same trust instrument. In The further inquiry is made as to whether a other words, the Board is of the opinion that national bank duly qualified to act as trustee the provisions of section 24 of the Federal may invest funds which it holds as trustee in Reserve Act apply to any investment by a loans upon farm lands and real estate without national bank of its own funds but do not regard to the provisions of section 24 of the necessarily apply to an investment of trust Federal Reserve Act. A national bank is funds held by a national bank as trustee for a bound by the terms of the instrument creating third person. LAW DEPARTMENT. Amendment to Texas banking laws. and negotiate with or without its endorsement or guaranty, The Legislature of the State of Texas re- notes, drafts, checks, bills of exchange, acceptances, including bankers' acceptances, cable transfers and other cently enacted the following act which specifi- evidences of indebtedness; to purchase and sell, with or cally authorizes trust companies having a without its endorsement or guaranty, stocks, bonds, securities including the obligations of the United States or capital of not less than $500,000 to deal in of any State thereof; to issue debentures, bonds, and commercial paper and to accept bills or drafts promissory notes, to accept bills or drafts drawn upon it, but in no event having liabilities outstanding thereon at drawn upon them: any one time exceeding five times its capital stock and surplus; provided, however, that with the consent in Be it enacted by the Legislature of the State of Texas: writing of the Commissioner of Insurance and Banking, SECTION 1. Any trust company organized under the they may have outstanding at any one time ten times the laws of the State with a capital of not less than five hundred capital stock and surplus; and generally to exercise such thousand dollars shall, in addition to all other powers con- powers as are incidental to the powers conferred by this act. ferred by law, have the power to purchase, sell, discount, Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

SEPTEMBER, 1920. FEDERAL RESERVE BULLETIN. 951 RETAIL TRADE. In the following tables is given a summary ume of business done during the calendar year of the results obtained during the past few 1919. For the month of July, the tables are months in districts Nos. 1, 2, 3, 4, 5, 6, 7, 9, based on reports from 22 stores in district No. 10, 11, and 12, on the regular retail trade index 1, 10 in district No. 2, 15 in district No. 3, form from representative department stores. 14 in district No. 4, 20 in district No. 5, 11 In districts Nos. 1, 5, 11, and 12 the data were in district No. 6, 8 in district No. 7, 13 in received in (and averages computed from) district No. 9, 15 in district No. 10, 15 in disactual amounts (dollars). In districts Nos. 2, trict No. 11, and 29 in district No. 12. For 3, 4, 5, 6, 7, 9, and 10 the material w^as re- the earlier months the number of stores varied ceived in the form of percentages, the averages somewhat, due to the inclusion of new stores for the cities and districts computed from such from time to time in the reporting list. percentages being weighted according to vol- Condition of retail tram in Federal Reserve districts Nos. 1, 2, 3, 4, 5, 6, 7, 9, 10, 11, and 12. [Percentage of increase.] Comparison of net sales with those of corresponding period previous year. July 1, 1919, Jan. 1, 1920, to close of— to close of— District and city. v 1 b N e 9 e m 1 o r 9 - , - . c 1 b D e 9 e m 1 e r 9 - , - . J 1 a a 9 r n 2 y u 0 , - . ru F 19 a e 2 r b 0 y - . , M 1 a 92 rc 0 h . , A 19 p 2 r 0 il . , M 19 a 2 y 0 , . J 1 u 9 n 20 e, . J 1 u 9 l 2 y 0 , . v 1 N b e 9 e m 1 o r 9 - , - . c 1 b D e 9 e m 1 e r 9 - , - . ru 1 F 9 a e 2 r b 0 y - . , M 1 a 9 r 2 c 0 h . , A 19 p 2 r 0 il . , M 19 a 2 y 0 , . J 1 u 9 n 20 e . , J 1 u 9 l 2 y 0 , . District No. 1: Boston. 42.3 33 2 15.4 38.9 16.8 19.4 27.8 16.3 36.3 24.9 30.7 26.1 24.7 25.3 16.3 Outside 41.9 43.5 36.1 29.4 26.0 25.5 28.5 27.2 38.5 41.6 36.4 33.1 30.5 30.0 27.2 District 42.1 34.8 18.3 37.5 18.5 20.7 28.0 19.9 37.2 32.5 31.6 27.5 25.8 26.2 19.9 District No. 2: N.Y. City and Brooklyn 49.2 54.6 29.9 66.6 15.0 41.1 26.4 22.4 49.7 39.8 59.3 35.0 35.3 32.7 22.4 Outside 50.4 22.4 22.8 32.3 26.9 38.1 33.6 30.1 31.7 26.9 District 64 8 15.8 35.4 28.4 24.4 57.0 34.9 33.7 33.8 24.4 District No 3 22.2 17.6 37.5 12.4 50.7 34.3 23.8 20.3 26.2 20.5 30.9 31.0 23.8 District No 4 28 6 45 5 18.4 31.3 31 5 29 9 36.0 38.2 33.6 32.1 34.6 29.9 District No. 5 14.2 23.1 .9 11.0 21.4 15.7 5.3 12.1 8.8 9.3 11.4 15.7 District No. 6 27.4 23.4 31.0 24.3 11.6 29.9 22.0 28.1 29.3 11.6 District No. 7 ""48*2" 5L7* 65.2 33.3 49.7 59.6 41.2 "m'.Y 57.4 43.5 49.6 58.7 41.2 District No. 9.. 17.0 4.3 11.8 11.6 19.8 5.6 12.0 11.6 District No. 10 24.6 19.6 10.9 12.9 14.1 26.9 24.9 21.2 17.9 14.1 District No 11 26.9 25.9 District No. 12: Los Angeles... 88.7 77.3 83.8 51.6 58.4 43.6 38.2 39.0 35.1 77.2 77.3 68.3 61.2 56.1 52.2 49.8 35.1 San Francisco. 45.2 54.6 53.5 26.9 35.4 28.5 40.9 23.6 21.0 46.3 47.1 58.9 39.7 36.6 37.6 35.3 21.0 Oakland 30.3 29.8 41.4 27.4 31.0 14.9 17.1 15.2 16.9 31.9 31.9 34.8 32.3 27.9 25.6 23.2 16.9 Sacramento... 36.6 50.7 54.2 22.6 65.1 33.9 34.4 32.1 20.1 35.7 39.5 36.6 60.9 47.5 39.4 38.3 20.1 Seattle 21.0 28.6 23.9 22.4 19.2 4.3 6.3 11.1 .2 29.5 29.3 23.0 21.8 U6.2 13.9 13.4 .2 Spokane 46.4 77.1 36.2 23.6 19.8 10.9 48.8 62.8 22.7 70.4 72.0 30.1 26.8 23.1 29.1 35.7 . 22.7 Salt Lake City 42.7 32.3 23.8 11.5 10.5 7.1 26.4 18.3 20.6 32.0 29.2 18.1 15.1 12.8 16.4 14.7 20.6 District 46.1 50.7 51.7 31.1 37.8 13.8 31.2 27.8 21.2 47.5 47.0 46.5 41.0 36.9 34.7 33.2 21.2 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

952 FEDERAL RESERVE BULLETIN. SEPTEMBER, 1920. Condition of retail trade in Federal Reserve districts Nos. 1, 2, 3, 4, 5, 6, 7, 9, 10, 11, and 12—Continued. [Percentage of increase.] Stocks at end of month compared with— District and city. Same month previous year. Previous month. Nov., Dec, Jan., Feb., Mar., Apr., Mav, June July, Nov., Dec, Jan., Feb., Mar., Apr., May, June, July, 1919. 1919. 1920. 1920. 1920. 1920. 1920. 1920. 1920. 1919. 1919. 1920. 1920. 1920. 1920. 1920. 1920. 1920. District No. 1: Boston 25 4 29.7 38 1 42 3 45 9 44 5 43 8 32 1 i 0 9 l 5 2 7 4 9 9 4 0 1 3 4 1 5 6 1 7 0 Outside 24.9 28.4 37.5 44.9 43.2 43.8 36.3 30.4 13.8 13.7 9.7 11.9 2.8 1 1.8 15.I .2 District 25.2 29.6 38.0 42.8 44.7 44.3 41.4 31.5 16.1 15.1 7.8 10.2 3.7 12.9 15.5 14.7 District No. 2: New York City ancL Brooklyn 36.4 44.0 49.6 69.6 53.8 47.9 45. 5 46.2 110.4 11.9 8.4 27.9 1.3 16.6 15.4 14.3 Outside 60.6 51.6 51.7 38.4 30.9 9 3 1 1.4 1 1.7 1 7.7 4.6 District 68.6 53 6 49.1 43.2 39.5 25.8 1.4 15.O 1 6.1 1.5 District No. 3.... 9.9 16.4 24.3 9- 7 30.4 26.7 28.4 1 3.4 7.0 12.3 5.4 1 6.7 1 3.0 3.3 District No. 4 48 6 56.1 63 q 57.0 53 3 48.3 45.1 11.6 7 3 1 1 0 1 1.4 District No. 5 57.0 51.5 59 67.1 57.2 44.6 10.5 14.1 i.l 2.3 19.2 2.5 District No. 6 41 1 29q 50 2 47.2 51.6 4.7 3 0 1 5 1 5.6 5 6 District No. 7 42.7 51.8 64.9 39 q 49.7 77.1 70.1 14.7 55.9 10.1 2.1 14.7 District No. 9 27 18 7 30.7 12.6 4 7 8 3 1 1 4 7 District No. 10 38.9 43 40.7 39.6 43.6 7.8 3.1 1 6.1 18.8 8.9 District No. 11 69.5 8.3 District No. 12: Los Angeles 19.5 31.0 44.0 42.1 58.3 64.9 65.0 62.9 47.5 i 0.7 110.9 9.7 12.1 7.8 3.7 1 .5 1.4 1.8- San Francisco.. 26.5 32.7 45.9 59.4 62.2 60.7 54.9 58.5 43.1 2.2 ill.l 4.7 12.7 6.1 2.4 1 6.5 1 5.2 1.5 Oakland 4.9 9 2 10.6 27 7 35 2 34.4 29.7 33.9 27.7 .2 i 9.7 1 8.4 18.6 6.5 !. 5 1.6 1 2.6 J2.9 Sacramento .3 37.1 61.8 J 29 4 34.1 i 6.1 3.7 1 1.5 0.1 Seattle 15 3 31 4 44.5 53 7 53 8 55-5 46.7 35.6 23.4 i 2.9 U8.9 1 2.0 11.8 14.9 1 6.7 18.7 M.2 Spokane 13.8 13.2 25.4 35.0 63.3 39.0 59.6 57.3 45.8 3.4 115.6 9.4 10.9 27.9 140.2 15.7 1 4.4 1.8 District 17.5 28.5 38.0 48.4 58.0 56.5 52.6 52.5 40.1 i.3 U3.3 2.6 14.0 9 6 1 4 713.0 1.8 Percentage of average stocks at end of each month to average Percentage of outstanding orders at end of month to monthly sales for same period. total purchases during previous calendar year. District and city. J t u o l y e n 1 d . o 1 f 9 — 19, Jan. ], 1920,to end of— Nov., Dec, Jan., Feb., Mar., Apr., May, June, July, 1919. 1919. 1920. 1920. 1920. 1920. 1920. 1920. 1920. Nov., Dec, Jan.. Feb., Mar., Apr., May, June, July, 1919. 1919. 1920.' 1920. 1920. 1920. 1920. 1920. 1920. District No. 1: Boston 360.7 320. S 382.2 509.5 389 8 348.4 339. 2 419.2 24.8 26.5 19.6 18.8 15.8 15.4 15.4 18.5 Outside 413.9 229.8 402. 5 320.5 464.7 442.5 431.? 436.4 13.7 16.7 19.7 18.6 15.5 7.5 10.0 9.1 District 382.1 306.0 385.5 389.9 405.2 366.5 358.0 425.1 23.1 24.0 19.6 18.7 15.7 12.7 12.3 12.0 District No. 2: New York City and Brooklyn 343. 4 336.9 405.6 3S4.7 403.1 392. 4 379.9 390.0 36.3 22.8 22.9 18.8 17.6 15. 5 16.8 15.7 Outside 372.3 392.8 415.7 349.5 485.8 20.3 21.8 13.9 17.7 18.9 District 383.4 402.0 399.4 369.9 440.1 19.0 18.2 14.8 17.2 17.4 District No 3 380.0 347 0 382.6 357.5 399.8 21.0 27.9 24.8 23. 5 17.6 19.3 19.8 District No 4 386 3 369 1 439 0 362.8 362.3 403.6 18.6 19.4 34.8 13.2 16.2 18.9 District No 5 456 8 423 s 422 2 421.5 407.0 505.9 20.4 16.9 12.1 9.9 9.7 16.1 District No 6 20.9 20.1 20.6 17.0 17.4 District No. 7 ,.. 298.6 332.5 305.8 328.3 432.7 18.1 29.7 31.4 31.2 31.9 19.5 19.3 District No 9 1894 31.8 109.0 107.9 9.6 19.5 20.0 13.7 District No 10 337.6 1 285.4 353.7 384.1 14.6 18.0 5.4 25.3 15.6 District No 11 18.6 District No. 12: Los Angeles 485.6 424.3 422.7 418.3 468.3 390.7 480.4 481.3 522.5 53.5 48.1 33.3 37.1 33.9 39.0 29.7 26.2 22.8 San Francisco.. 453.0 403.1 405.2 477.5 494.9 492.3 469.8 508.8 539.9 29.5 28.1 18.2 31.9 31.0 27.7 23.9 26.0 25.9 Oakland 559 1 600 2 490 6 581 6 610 7 585 9 589 5 573 8 625 1 339 3 533.4 531.3 Seattle 432.0 378.0 427.1 665.0 542,6 527 9 539.7 524.6 470.2 22.1 32.2 18.4 22.6 17.6 17.2 14.2 16.3 16.3 Spokane 462.4 411.5 508.8 755.9 605.8 528.8 605.4 579.4 652.6 20.0 34.5 37.2 40.6 34.7 31.1 25.1 29.9 Salt Lake City.. 11.4 8 ?, 18.7 District 463.1 422.6 429.0 534.7 515.3 456.0 508.0 516.0 536.5 29.2 32.3 28.0 31.7 27.2 21.6 23.2 23.1 22. a 1 Decrease. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

953 SEPTEMBER,, 1920. FEDERAL RESERVE BULLETIN. FOREIGN TRADE INDEX. There is presented below a series of indexes After their decline in June, total exports designed to reflect movements in foreign trade again showed an increase in July, though they of the United States, with fluctuations due to were still less than for May. Total imports, on price changes eliminated. The commodities the other hand, showed a decrease. While chosen for these indexes are those for which there was a decrease in the exports of conprices are compiled by the Federal Reserve sumers' goods, this was more than compen- Board in the preparation of its international sated for by the increase in the exports of both price index. The list includes 14 of the most raw materials and producers7"goods. The latimportant imports, the value of which in 1913ter showed the most marked increase, being formed 40.6 per cent of the total import values, considerably greater than for both last month and 29 of the most important exports, the value and the same month last year. The increase of which in 1913 formed 56.3 per cent of the in the imports of consumers' goods which was total export values. The list of the com- shown for July as compared with June was modities is given in the July BULLETIN. more than offset by decreases in imports of both raw materials and producers' goods. Value of exports and imports of selected commodities at 1913 prices. [In thousands of dollars; i. e., 000 omitted.] [Monthly average values, 1913=100.] Exports. Imports. Raw materials Producers' Consumers' Grand total Raw materials Producers' Consumers' Grand total (12 commodi- goods (10 com- *oods (7 com- exports (29 com- (6 commodi- goods (6 com- goods (2 com- imports (14 comties). modities). modities). modities). ties). modities). modities). modities). Index Index Index Index Index Index Index Index Value. num- Value. num- Value. num- Value. num- Value. num- Value. num- Value. num- Value. number. ber. ber. ber. ber. ber. ber. ber. 1913. January 100,027 116.8 11,762 101.4 30,715 100.9 142, 504 111.6 50,336 123.8 32,545 105.0 12,080 107.6 94,961 114.6 February... 71,074 83.0 12,266 105.8 33, 790 101.2 114,130 89.4 45,175 111.1 34,308 110.7 11,865 105.7 91,348 110.2 March 01,€81 72.0 11,836 102.1 28, 098 94.3 102,215 80.1 46,079 113.3 37,824 122.0 10,145 90.4 94,018 113.5 April 71,446 83.0 14,128 121.8 28,708 94.3 114,282 89.5 42,785 105.2 36,216 116.9 8,983 80.0 87.984 106.2 Hay 68,856 80.4 11,661 100.6 29,923 98.3 110,440 86.5 38,111 93.7 32,601 105.2 6,127 54.6 76,839 92.7 June 46,9(:3 54.8 11,612 100.1 28,242 92.8 86.817 68.0 32,793 80.6 33,790 109.0 6,843 60.9 73,426 88.6 July 51,325 59.9 11,109 95.8 27, (,86 91.0 90,120 70.6 31,681 77.9 31,178 100.6 7,557 67.3 70,416 85.0 August 74,869 87.4 11,547 99.5 29,370 96.5 115,786 90.7 35,194 86.6 34,223 110.4 9,438 84.1 78,855 95.1 September.. 103,614 120.9 10,622 91.6 32,190 105.8 146,426 114.7 42, 588 104.7 35,137 113.4 14,0t8 125.3 91,793 110.8 October 137,772 160.9 12,6C8 108.7 34,612 113.8 184,992 144.9 36,842 90.6 18,331 59.2 14,695 130.9 69,868 84.3 November.. 126,836 148.1 9,987 86.1 31,246 102.7 168,069 131.6 37,465 92.1 22,353 72.1 13,892 123.8 73.710 88.9 December.. 113,326 132.3 10, 053 86.7 33,089 108.7 156,468 122.5 48, 886 120.2 23.406 75.5 19,028 169.5 91,320 110.2 Year...1,027,789 100.0 139,191 100.0 365,269 100.0 1,532,249 | 100.0487,935 100.0 37], 912 100.0 (134,721 j 100.0 994,568 i 100.0 1919. January 84,066 98.2 18, 444 159.0 56,748 186.4 159,258 124.7 38,273 94.1 45,892 148.1 12,115 107.9 96,280 116.2 February... 58,488 G8.3 14,598 125.9 53,338 175.2 126,424 99.0 35,074 86.3 60,653 195.7 12,056 107.4 107,783 130.0 March 57,659 67.3 16,161 139.3 61,585 202.3 135,405 106.1 39,396 96.9 78,773 254.2 21,708 193.9 139,937 168.8 April (,5,112 76.0 19,356 166.9 80, (:39 264.9 165,107 129.3 51,280 126.1 81,409 202.7 13,222 117.8 145.911 176.0 May 1,7,595 78.9 15,972 137.7 58,731 192.9 142,298 111.4 71,831 176.7 84,538 272.8 15,949 142.1 172,318 208.0 June 98,335 114.8 28,018 246.7 96,088 315.7 223,041 174.7 73,311 180.3 57,244 184.7 12,208 108.7 142,703 172.3 July 71,918 84.0 16,953 146.1 50,531 166.0 139,402 109.1 72,974 179.5 72,172 232.9 21,555 192.0 lbt;, 701 201.1 August SI, 302 94.9 19,578 168. 8 49,548 162. 8 150,428 117.8 77.988 191.8 36,460 117.6 17,525 156.1 131,973 159.2 September.. 70,209 82.0 19,31)5 167. 0 43,108 141.6 132,682 103.9 109,761 269.9 60,884 196.4 20, 779 185.1 191,424 231.0 October.... 70,240 82.0 16,844 145.2 45,983 151.1 133,067 104.2 88,701 218.2 64,921 209.5 17,198 153.2 170,820 206.1 November.. 09,589 116.3 15,740 135.7 46,473 152.7 161,802 126.7 84,424 207.6 69, 554 224.4 17,000 152.0 171,038 200.4 December.. S9,585 104.6 13,208 113.9 43,563 143.1 146,356 114.6 €4,252 158.0 60,994 196. 8 14,831 132.1 140,077 169.0 Year. 914,098 88.9 214,837 154.4 686,335 187.9 1,815,270 | 118.5 (807,265 165.5 773,494 2C8.0 jl90,206 , 145.7 1,777,025 178.7 1920. January l>3,141 108. 7 15,647 134.9 35,406 116.3 144,194 112.9 90,433 222.4 82,014 264.6 17,874 i 159.2 190,321 229.6 February... 70,130 81.9 14,198 122.4 41,645 136.8 125,973 98.7 75,597 185.9 99,502 321.0 14,241 | 120.9 189,340 228.4 March 90,805 106.0 17,279 149.0 50,428 185.4 164,512 128.9 77,966 191.7 117,188 378.1 19,260 I 171.6 214,414 258.7 April (8,048 79.4 17,063 147.1 51,689 169.8 136,800 107.1 77,288 190.1 89,684 289.4 21,347 I 190.1 188,319 227.2 May (3,650 74.3 17,546 151.3 62,457 205.2 H3,653 112.5 45,967 113.0 74,811 241.4 11,140 98.5 131,918 159.2 June S5,200 64.5 14,663 126.4 46,113 151.5 115,976 91.1 55,965 137.6 87,205 281.4 18,437 1(3.0 161,607 195.0 July 66,924 78.1 19,138 165.0 43,325 142.4 129,387 101.3 48,580 119.5 86,720 279.8 20,091 I 177.6 155,;:91 187.5 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

954 FEDERAL RESERVE BULLETIN". SEPTEMBER, 1920. WHOLESALE PRICES ABROAD.1 Index numbers of wholesale prices {all commodities). [1913=100.] B R F U S t o q i e e t a u o n a d s r o n i e t e d t e t s r e r a v s ) a ( d - . 9 ; e l 0 ( B 3 S 2 U S t u t L i a 8 t r o n a a t e i n i b t q a s t e s o e t u u s ) i d r o c . ; o t s a f - m K ( S U 4 i o n t 5 d n a g i i t d c t t i i o e s o e m d t m s) - ; . S m G B t ( F 4 a o e d u r t 5 d a i n l e s i l n e c t l t e i r o a c i t e a q m e i s t n u ; e ) - e . c B o a I m t P c t i a e h r m o s l i y ) f o . ( . ; d 4 i 0 - H S t S i w d a v n n e e d i d n n e e s g l n k s . ; - c T J o B a o J m t p a k a ie a p n y m s n a k o ) o n . f ( d o o ; 5 f i r 6 - C m A S C ( e B 9 w t o o u n a 2 m u d s s e t u t i r i a c r m s t e s l a i o t a t e i o l m a h c u i s n n a ) s - - . ; d L C m D a t q b i a e u o e o n p n o n r a a t t s d a ( r ) 2 o a t - . 7 - f ; 2 m S C ( m D 7 t o I a a n 5 e e d l t c p d n i i c s t u a i t i o t a e t r i m o t t ; c s a - f ) s , - . 1913. 100 100 100 100 100 100 100 100 1914. 100 .101 101 95 116 96 2 100 101 1915. 101 126 137 133 145 97 141 110 1916. 124 159 187 202 185 117 132 135 1917. 174 206 262 299 244 149 <155 177 1918. 197 226 339 409 339 197 170 206 1919. July 212 218 243 349 359 320 247 176 218 August 218 226 250 347 368 321 251 182 223 204 September... 212 221 252 360 370 319 257 185 223 200 October 212 223 264 382 388 307 271 200 222 November 219 230 271 405 436 308 280 199 227 December 224 238 276 423 455 317 288 197 240 •1920. January 242 248 288 487 504 319 301 203 248 218- February 242 249 306 522 556 342 313 206 254 209 March 248 253 307 555 619 354 321 209 258 19& April 263 265 313 584 679 354 300 217 261 200 May 264 272 305 550 659 361 272 225 263 210 June 258 269 300 493 614 366 248 233 258 206 July 251 262 299 492 364 239 234 256 209* 1 The index numbers printed in this article are constructed by the various foreign statistical offices according to methods described in the BULLETIN for January, 1920. In all cases except that of the United States the original basis upon which the index numbers have been computed has been shifted to the 1913 base. The monthly and yearly index numbers are therefore only approximate. The latest figures are received by cable and are subject to correction. 2 July, 1914= 100. sEnd of July, 1914=100. * Last six months of 1917. In France and England the decline in whole- have been largely unaffected by price recessale prices which began in April had about sions. Coal prices remain fixed at their former come to a standstill in July. Japanese prices level. Nonferrous metals, such as copper tin, ; were still declining, but not so rapidly as dur- zinc, and lead, which were among the first coming the three or four months previous. In the modities to decline in price, have moved up- United States the recession in prices occurred ward again in July. Textile and leather lines somewhat later than abroad, and was quite as seem to be passing through a rather more exconsiderable in July as in June. Elsewhere, tended period of inactivity. Retail prices with the exception of Italy, the trend has not have not as yet declined, although the rate of been especially striking. The present situation increase in July was not so great as thatof May in the leading commercial countries varies with and June. different commodities. Liquidation has been During July the currency note circulation completed in certain lines (such as nonferrous continued to increase, but not at the June rate. metals) and prices are beginning to advance; In both months legal requirements as to the in other lines no reductions have been made maximum issue were met by transferring bank because of shortage of materials, and in still notes to the currency notes account. Thus the others (notably textiles) inactivity and station- currency note circulation increased from 351 ary or falling prices continue. million pounds the first of June to 362 million pounds at the end of July, and bank notes in ENGLAND. the redemption account increased from 10.4 The Statist index shows a gradual decline in million to 18.5 million pounds during the same prices since April, amounting in all to 14 points period. Note circulation of the bank increased when computed on the 1913 base, the decline only about 2 million pounds between the first from the end of June to the end of July amount- of June and the end of July, not including the ing to only 1 point. The Economist index notes which went to the redemption account. shows a decline in prices between March and Coin and bullion held by the bank increased June, but a slight rise in July. Certain leading almost 3 million pounds during July and industries, such as the iron and steel industry, deposits declined very markedly between June Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

SEPTEMBER, 1920. FEDERAL RESERVE BULLETIN. 955 30, when they amounted to 192 million deter rather than speed the return to norma pounds, and July 28, when they stood at 134 conditions is the view taken by these groups. million pounds. During the first weeks of They urge the removal of the excess profits August they have been on a higher level than duty and sharp reduction in Government exduring July. The expansion of deposits was penditures as the best means of bringing about unusually heavy at the end of June because stable financial conditions. At the present time that date ended the half year. the excess profits duty stands at 60 per cent, A comparison of conditions between April 15, but the chancellor has stated that the tax will when the discount rate at the Bank of England be reduced to 40 per cent in the next budget was raised from 6 to 7 per cent, and the end of or eliminated if a substitute for it can be found. July, shows that currency and bank-note circu- Whether England has reached the limit of lation have expanded at a rapid pace, although her tax-paying capacity is a question which in the case of the latter not so rapidly as during is much under discussion there. According the first quarter of the year. Gold has been to reliable figures the per capita rate of taxconcentrated in the Bank of England, and ation is $105.47, a considerably larger sum deposits with the bank have been less extensive than in the United States or France, where than during the first quarter. Deposits with the per capita rates are $53.71 and $44.51, the "five big banks/' however, increased dur- respectively. During the present period of ing the first half of the year. During the period more or less widespread trade depression, an between April 15 and the end of July, coin attack upon methods of taxation is to be exand bullion held by the bank increased from pected. As prices approach more nearly to 112.4 million to 123.2 million pounds, or 9.6 costs, it is natural that taxes loom larger and per cent; currency note circulation increased seem to be the cause of the depression. It from 340 million to 362 million pounds, or 6.5 seems more likely, however, that a reduction per cent, and bank note circulation from 100 has occurred in consumers' demand (either to 107 million pounds, or 7 per cent. Between because of inability to pay or of fairly large the same dates, deposits (public and other) stocks) which together with the curtailment declined from 142 million to 134 million pounds, of credit has caused the present inactivity in but during June they stood for the most part commodity markets. higher than in April and during August they How much Government expenditures can be have been at about the April level. Deposits reduced is always a matter difficult to deterof the five leading English commercial banks mine because of political considerations. The were increased during the first half year of Manchester Guardian is of the opinion that 1920 by 31.9 million pounds. they can not be appreciably decreased. The As regards the floating debt, Treasury bills bread subsidy, amounting to 45 million pounds outstanding at the end of March amounted to annually, is still effective, but will probably be 1,107 million pounds, whereas at the end of removed in the next budget. July they had been reduced to 1,058 million Discount rates during the first six months of pounds. The floating debt as a whole fell from 1920 have risen very appreciably, in the case 1,312 million at the earlier date to 1,262 million of bankers bills from an average of 5|-f per pounds at the end of July. cent at the end of January to 6y^ per cent at The positive stand taken by the chancellor the end of July. The greatest increase occurred of the exchequer in the matter of floating debt following the raising of the official bank rate reduction has been widely condemned in the in the middle of April. During July rates British financial press. Too rapid debt reduc- tended to be slightly easier than in the two tion brought about by excessive taxation will preceding months. Deposit and note accounts. Government floating debt. Discount rates. 1920. Currency n B o a te n s k .1 c n o e o u r t t t i e s f s t i a c a n a n t d e d - s p D u o b ep t l h i o c e s r a i . t n s d , C bu o l i l n i o a n n .2 d Tr b e i a l s ls u . ry T a e d m va p n o c r e a s ry . T i o n t g a l d f e l b oa t. t- b 3 a m nk o n b t il h l ' s s . t 6 ra m de o n b t i h ll ' s s . ing. End ol— 000's. 000's. 000's. 000's. 000's. 000's. 000's. Per cent. Per cent. January.. £84,258 £329,554 £155,272 £128,434 £1,111,000 £208,000 £1,319,000 February 92,426 324,994 190,147 138,946 1,070,000 188,000 1,258,000 March 99,371 335,372 137,170 140,672 1,107,000 205,000 1,312,000 April 101,284 337,377 140,381 141,018 1,048,000 249,000 1,297,000 3 May 103,614 348,316 117,784 140,955 1,062,000 221,000 1,283,000 June 106,658 357,356 191,715 146,382 1,050,000 244,000 1,294,000 July 106,869 361,911 133,796 15], 734 1,058,000 204,000 1,262,000 1 Less notes in currency notes account. 2 Held by the Bank of England and by the Treasury as note reserve. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

956 FEDERAL RESERVE BULLETIN. SEPTEMBER, 1920. Foreign trade showed further improvement spite of the fact that the export of coal conduring July, the adverse balance totaling only tinued to be very largely curtailed. Since coal 8.5 million pounds. From the point of view production shows little prospect of reaching of international payments this showing is prewar levels, an increase must occur in the very favorable, and when considered as an export of other commodities if British trade index of production or export capacity it is to regain its prewar position. shows great improvement over a year ago. Coal production during July, taken on a A study of the trade of the first six months weekly basis, was slightly less than that of of the year by the board of trade shows June and appreciably less than that of Febthat in quantity exports in 1920 were 26.5 ruary and March. This was due to continued per cent less than exports in 1913. ~ Keex- export restrictions which although somewhat ports were 5 per cent less than in the prewar amended apparently allow little of the comyear, and imports 3.4 per cent less. The July modity to leave the country. The trend of figures show appreciable improvement over pig-iron and steel-ingot production continued those of earlier months of the year and this in upward. Value of foreign trade. Production (metric tons). Ship tonnage under Date. Steel ingots construc- Imports. Exports. Reexports. Coal. Pig iron. and tion (gross castings. tons). 000's. 000's. 000's. 000's. 000's. 000's. Monthly average, 1913. . £39,061 £43,771 £9,131 24,336 869 649 22,002,699 1920. January 183 498 105,880 25 464 i 22,657 676 766 February ... 170,514 85,964 22,604 19,435 656 811 March 176,648 103,699 27,031 19,505 710 854 3,394,425 April .. . 167,154 106,252 20,407 17,131 655 779 May 166,816 119 319 20 260 122 131 738 848 June... 170,491 116,352 20,124 19,048 726 745 3,578,000 July 163,842 137,452 17,848 122,926 750 800 1 5 weeks in the month. 2 Average of four quarterly estimates. Figures following are estimates taken at the end of each quarter. The price situation in the different commod- sundries is likewise in accord with the report ity lines is exceedingly confused. According of the American consul. to cables received by the Board from consular The Economist index, on the other hand, agents in England the following basic food- shows a decline in cereals and meats, a rise in stuffs were as high in July as in June or higher: "other foods" (consisting of tea, sugar, etc.), Wheat, barley, beef, ham, mutton, tea, and and a rise in textiles and a fall in miscellaneous butter. Sugar and coffee were the only im- commodities, such as rubber, timber, oils, etc. portant staple foods to decline. The leading It agrees with the Statist and the consular raw materials in the manufacture of textiles representative in showing an increase in the were, on the other hand, lower than in June, price of minerals. jute showing a very considerable drop. Hides Trading in cotton was reported to have likewise continued to decline. In the mineral improved in Manchester toward the end of group, coal and Cleveland pig iron were the July as a result of renewed buying from India same as in June, steel billets declined in price, and China. The Polish situation, following but copper, lead, zinc, and tin (the first com- closely upon the previous inactivity, had a modities to be liquidated in the spring) were tendency to keep trade inactive, however. In higher than in June. Rubber and nitrate of the case of wool the fundamental cause for soda declined. lower prices is to be found in the very large According to the Statist index, vegetable stocks of raw material owned by the Governfoods as a group declined, animal foods ad- ment in Australia and to be transported to Engvanced very materially, and sugar, tea, and land as rapidly as shipping will allow. The coffee declined. This agrees with the consular market in raw materials and finished goods conreport except as regards vegetable foods. The tinued inactive. Jute prices have been affected increase in minerals (due to the rise in non- by the condition of Indian exchange, which ferrous metals) and the decline in textiles and has recently been very favorable to England. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

SEPTEMBER,, 1920. FEDERAL RESERVE BULLETIN. 957 The continental exchanges were somewhat Berlin improved. During August the Polish less favorable to England in July than during re- situation had a bad effect upon all the excent months. The position of Paris, Italy, and changes. Statist index number of wholesale prices (193=100). Foreign exchange rates,1 London on— Date. f V t o a e o b g d l e e s - . f A o m o n a d i l - s. c S o t u e f g f a e a . e r , , s F t o u o ff d s - . e M ra i l n s - . t T il e e x s - . d S r u ie n s - . M ria a l t s e . - All. Y N o e r w k - . Paris. Italy. Berlin. B A u i e r n e o s. s S h t o o l c m k . - c C ut a t l- a. 1913 100 100 100 100 100 100 100 100 100 24. 8665 25. 2250 25.2250 20.430 .47.580 18.159 24 1914 110 100 107 105 90 97 105 98 101 1915 155 125 130 137 109 111 131 119 126 1916 193 152 161 169 140 152 163 153 159 1917. 252 192 213 218 152 228 212 198 206 1918 248 210 238 229 167 265 243 225 226 1919-end of— July 244 208 275 231 203 257 283 249 243 4. 4056 31.0900 37.4525 52. 000 17.774 August. 255 208 320 242 206 273 283 255 250 4.3400 32.7475 38.2500 52.875 17.400 S O e c p t t o e b m e b r e .. r . 2 2 6 5 0 8 2 22 0 6 8 3 32 2 2 8 2 25 4 3 5 2 2 0 2 6 2 3 2 0 8 5 7 2 28 7 4 8 2 2 5 7 7 0 2 2 6 5 4 2 4 4 . . 1 1 6 9 2 3 9 4 3 3 5 5 . .7 5 2 9 8 0 7 0 4 41 0 . . 8 6 1 0 2 0 5 0 1 1 0 0 6 1. . 9 5 3 0 7 0 5 55 5 . . 1 5 2 0 5 0 1 1 7 7 . . 0 2 5 6 0 5 22n November 266 226 332 258 226 325 292 280 271 4.1142 38. 2450 47. 7937 156.375 56.750 17.676 24^ December 270 228 336 260 234 334 296 286 276 3. 8646 41.4566 49.6166 183.333 61.110 17.784 27| 1920: January.. 274 230 356 265 256 . 343 312 302 288 3.6904 42.9375 51. 2375 239.375 63.390 17.804 February. 297 237 415 286 267 362 329 318 306 3.4612 48.2125 60.3812 327.750 69.660 18.208 March 345 237 393 300 263 360 318 312 307 3.6907 52.3375 70.4700 304.100 64.660 18. 244 29f April 246 265 392 315 263 354 321 311 313 3.9181 63.2937 88.0000 239. 500 60.125 17.935 28H May 351 244 473 318 273 308 311 298 305 3. 8462 56.7125 76.3120 183.870 60.220 18.208 June 359 244 496 325 269 308 282 285 300 3.9421 48.9200 66.9550 154.700 58.190 18.081 23l* July 343 278 425 325 276 298 277 283 299 3. 8755 47.0425 66.1875 150. 813 56.700 17. 716 22§ 1 Average of weekly quotations from London Times. 2 Par. The cost of living has not been reduced as yet FRANCE. in spite of decreases in some lines of goods at wholesale. This is accounted for in part by the There was little change in the price level fact that there is a lag between fluctuations in in France during July, and the most interesting wholesale and retail prices, but probably to a developments tnere, if one discounts events of larger extent by the fact that foods have not a political character, were in regard to the been much reduced and rents, fuel, and gas are financial situation of the Government. In the still advancing. Of the items of great impor- last days of June the Senate and the Chamber tance in the family budget, clothing is probably of Deputies completed the work of enacting the only one which has been appreciably re- new taxes which will, according to Les Temps, duced in recent months. increase the annual revenue of the French Government to approximately 23,000,000,000 Although unemployment is reported in shipfrancs a year. On July 20 there were reported yards and short hours in several lines of industo the Senate the expenses of the war and the try, trade-union unemployment returns for the deficit occasioned thereby and the public debt month of July were not high. They showed, as of July 1 was announced. On July 31 the however, increasing lack 01 employment be- Chamber of Deputies granted the request of the tween Ma?ch and July. finance minister for the issuing of a new loan, and in the first week of August it was an- Cost of nounced that France was making preparations l ( i f v o i o n d g , Trade- for the payment of her share of the Anglorent, union un- French loan due the United States in October. clothing, employfuel, ment The recently enacted tax laws provide for lighi (memetc.), bership the application of the excess war profits tax base, 1,572,085). until June 30, 1920; for a tax of 1.1 per cent on July, 1914. total business turnover; for increased inheritance, stamp, and registration taxes; and for 1920. Per cent. increased income taxes. The income taxes are J F a e n b u r a u r a y ry... . 1 13 2 0 5 2 1 . . S 6 of two kinds, a classified and a general income March ; 130 1.1 tax. The classified tax applies (a) to all per- April.. 132 .9 May 141 1.1 sons in communities of 50,000 inhabitants or June . 150 1.2 July 152 1.4 less, whose incomes exceed 4,000 francs; (b) to August 155 all persons in communities of more than 50,000 9149°—20 5 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

958 FEDERAL, RESERVE BULLETIN. SEPTEMBER., 1920. inhabitants or within a radius of 15 kilometers were 233,299,536,826 francs. The major part of such a community whose incomes exceed of these expenses have been met as follows: 5,000 francs; and (c) to all persons in Paris Billion francs. or within a radius of 25 kilometers of Paris Tax receipts 43 whose incomes exceed 6,000 francs. The Advances from the Bank of France 26 rate of this tax for amounts exceeding 8,000 Foreign loans 35 francs is 8 per cent for incomes derived from Treasury certificates 46 Domestic loans 72 commercial enterprises, and 6 per cent for incomes derived from other sources. For the The status of the public debt as of July 1, amount between the minimum exempt and 1920, calculating foreign debts at par, was as 8,000 francs there are provided giaduated rates follows: varying with the source of the income. The 20 Million francs. per cent tax on incomes from mines and indus- Domestic debt, perpetual and redeemable 121, 949 tries connected with mining, which is already Floating debt 51, 464 Advances of the Bank of France 26, 020 in effect, is not changed by the new law. Foreign debt 34, 296 The general income tax affects only such sums as exceed 6,000 francs after deductions Total 233,729 for the support of dependents have been made. This tax is calculated at the rate of 50 per In the face of such a large floating debt and cent on one twenty-fifth of the income be- the heavy burden of reconstruction, it is not tween 6,000 and 20,000 francs, two twenty- surprising that the finance minister, M. Franfifths of the income between 20,000 and cois Marsal, has asked for a new internal loan. 30,000 francs, and so on, adding one twenty- The loan floated last spring was not as largely fifth for each additional 10,000 francs up to subscribed as it would have been but for the 100,000 francs, for each 50,000 francs up to widespread railroad strike which occurred 550,000, and at the rate of 50 per cent on all during the subscription period. the income over 550,000 francs. This tax is During the month of July the total gold increased 25 per cent for those unmarried or reserve of the Bank of France increased from divorced persons over 30 years old who have 5,588 million francs to 5,589 million francs and no dependents, and 10 per cent for persons its silver reserve from 241 million francs to married more than two years who have no 248 million francs. During the same period children or other dependents. This does not the note circulation of the bank rose from apply to those who are in receipt of a pension 37,544 million to 37,696 million francs. for a 40 per cent disability or whose children Chiefly because of unfavorable news from the were killed during the war. Eeceipts from East, exchange rates fluctuated unfavorably the 1.1 per cent tax on total business turnover during the month. Sterling was quoted about are to be divided between the Central Govern- 2 francs higher at the end of July than at the ment and the departments and communes, 1 beginning, and the dollar rose from 12 francs 10 per cent going to the Central Government and on the 1st to 13 francs 8^ on the 30th. 0.1 per cent to the departments and com- Crop reports continue to be good. Wheat munes. Business enterprises whose charges fields, vineyards, and the sugar beet, hay, are regulated by the Government or whose potato and flax crops were all in better condiprofits were taxed before the passage of this tion in July, 1920, than in July, 1919. Much law are not required to pay the new tax. As of this improvement is said to be due to the applied to businesses which supply lodging or use of improved agricultural machinery. Sugar sell food and liquors for consumption on the production increased from 107,536 tons in the premises, the rate of the tax is increased to 3 season of 1918-19 to 152,403 tons in the season per cent for those of second class, and to 10 of 1919-20. The increase in the food supply per cent for those of first class. The total of France is so great that the minister of comturnover of industries selling luxuries at retail merce, M. Isaac, has announced that the or for consumption will also be taxed at the system of rationing will soon cease except as rate of 10 per cent. As these taxes went into regards wheat and wheat products, which will effect immediately, French tax receipts in remain under control until August, 1921. The July totaled 1,109 million francs, 22 per cent new price recently established for wheat is 100 more than the receipts for June, 1920, and 44 francs per quintal and for bread 1 franc 25 to per cent more than those for July of last year. 1 franc 30 per kilogram, an increase in both According to the report to the Senate on cases. The price of bread corresponds with the July 20, French expenses resulting from the price of wheat for the first time since 1915, thus war from August 1, 1914, to July 31, 1920, relieving the Treasury of a heavy burden. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

SEPTEMBER, 1920. FEDERAL EESERVE BULLETIN. 959 The course of wholesale prices in France dur- The task of supplying the country's needs ing July shows no distinct trend either upward remains, however, a serious one. A recent or downward. The silk market at Lyon re- report to the Senate sets forth the following ports a period of inactivity as a result of the figures: hope among buyers that prices will go still Coal received in France. lower than the June level. The price of wool [In thousands of metric tons.] at Havre decreased slightly during the month, but cotton increased in price from 7 to 11 per From From cent. The rise in the Statistique Generale in- French foreign Total. mines. mines. dex number for minerals seems to have been caused by the increase in the prices of copper, 1913. 35,790 18,711 54,501 tin, and zinc, as iron and steel prices show little 1915 16,935 18,770 35,712 variation throughout the month. The price of 1 1 9 9 1 1 6 7 2 1 4 8 , , 8 18 1 5 8 1 15 8 , , 1 7 1 3 0 5 3 3 6 9 , , 9 9 2 2 0 8 vegetable foods, as is natural at this season of 1918 22,100 15,933 38,033 1919 15,938 121,336 37,274 the year, declined markedly. The following table shows the trend of prices 1 Of which 2,503,354 tons came from the Sarre Basin. according to the Statistique Gene'rale: The average monthly receipts in 1913 were Group index numbers—France. 4,542 thousand tons, and in 1919 only 3,106 thousand tons; receipts for the first six months [Bulletin de la Statistique Generate.] of 1920 have totaled only 23,075 thousand [1913-100.] tons. The improvement in the French balance of Date. f A m o n o a i d l - . f V t o a e o b g d l e e s - . c c S o o a u f c n f g o d e a a e r , . , F ( o 2 o 0 d ). s e M ra i l n s - . t T il e e x s - . d S r u ie n s - . M r (2 ia a 5 l t ) s e . - h tr a a s d e d e h c a i s d e b d e e t n o s r o e m m o a v rk e e p d a t r h t a o t f t h th e e G r o e v s e tr r i n c m tio en n t s on imports of luxuries. The following figures show the extent of that improvement: 1913 100 100 100 100 100 100 100 100 1914 103 103 106 104 98 109 99 101 1915 126 126 151 151 164 132 145 145 French foreign trade, January through July.1 1916 162 170 164 167 232 180 199 206 1917 . . 215 243 201 225 271 303 302 291 1918 286 298 231 281 283 460 420 387 [In millions of francs.] 1919. July 372 336 257 338 267 406 395 358 A O Se u c p t g o t u b e s e m t r ber.. 3 3 4 6 8 0 0 7 2 3 3 3 0 3 0 9 7 8 2 2 26 6 6 4 8 3 3 3 3 5 3 2 3 4 3 2 2 27 7 9 9 3 5 4 4 5 3 7 5 4 6 4 3 4 4 9 0 0 8 2 3 3 3 4 6 8 0 7 1 5 1919 1920 d In ec c r r o e e r a a s s e e . November.. 424 351 271 369 323 620 415 435 December... 432 380 278 375 357 649 419 454 Imports: 1920. Foodstuffs . . . 5,706 5,395 - 311 January 452 432 *419 440 413 787 465 525 Raw materials 7,369 10,153 +2,784 February 484 474 436 474 444 828 503 561 Manufactured articles 5,947 6,212 + 265 March 500 516 439 498 460 884 548 600 April 522 511 429 506 498 953 587 646 Total 19,022 21,760 +2,738 J M u a n y e 4 4 8 8 0 2 4 4 8 0 0 0 4 3 2 9 4 2 4 43 7 4 2 4 4 2 5 8 9 8 7 4 3 1 4 6 51 01 7 6 5 1 4 4 0 Exports: July 501 370 405 432 449 746 500 542 R Fo a o w d s m tu a f t f e s rials . . 7 5 6 2 5 8 2 1 , , 7 0 7 8 5 9 + + 2,0 5 1 6 0 0 Manufactured articles 2,990 7,594 +4,004 Parcel post 493 548 + ' 56 Coal receipts for the month of June exceeded Total 4,776 12,006 + 7,230 those for May. Receipts for June and for July 1-20 were as follows: 1 Based upon 1919 value units. Coal available in France. ITALY. In a series of recent articles from an Italian June, 1920. Jul 1 y 9 2 1 0 - . 20, correspondent, the London Economist has published some illuminating information regarding economic conditions in Italy since the Giolitti French coal 1,896,235 1,162,553 Sarre coal - 638,861 275,579 government came into power. According to English coal 992,316 696,486 Belgian coal.. . 72,831 55,335 this correspondent, the cause of the fall of the American coal 481,808 242,010 former government was due to Nitti's efforts German coal 310,166 336,866 to decrease the extraordinary budget by reliev- Total 4,392,217 2,768,829 ing the treasury of the bread subsidy which will amount to 4,400 million lire in 1920-21. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

960 FEDERAL RESERVE BULLETIN. SEPTEMBER, 1920. To do this involved an increase in the selling The following table shows the trend of wholeprice of wheat from 65 to 115 lire per metric sale prices, by groups of commodities: quintal and the bread price from 85 centesimi to 1.50 lire per kilogram. In order that the Group index numbers—Italy. burden of this increase in prices might not fall Prof. Bachi. (1913=100.1 on the working classes, Nitti's plan provided that all employers increase salaries and wages of workers 25 centesimi a day for each of the Ce a r n e d als O fo t o h d e - r Textiles. Mi a n n e d rals Other worker's dependents. To relieve the treasury meats. stuffs. metals. goods. further a bread tax was proposed for all people with an income greater than 12,000 lire per 1913 100 100 100 100 100 1914 102 84 96 100 96 annum. This meant that the bread subsidy 1915 132 93 113 207 133 1916 156 135 184 380 197 continued, but that the burden was definitely 1917. .. 215 171 326 596 266 placed upon the employing class in the com- 1918 315 229 475 750 391 munity and, to a less extent, upon those of 1919. moderate or large income. The administrative J A u u ly gust.. 3 3 3 3 4 2 3 3 5 3 1 2 4 4 2 0 3 1 4 4 2 2 4 3 3 3 4 4 2 1 difficulties in the tax are apparent. September 319 357 429 442 342 October 326 366 499 459 341 The Giolitti government has so far done November 328 371 633 568 351 December 338 373 658 584 405 nothing about the bread subsidy, but has made very sweeping recommendations regarding new 1920. January... 363 396 777 671 418 taxes. How to meet the requirements of the February 365 399 840 857 443 March. . 381 418 962 996 489 extraordinary budget for 1920-21, which April 395 494 1,064 1,076 535 amounts to something over 13 billion lire, is May. 441 499 840 1 088 525 June 445 507 742 917 534 the problem of the day. The ordinary budget July provides for revenue of about 10.5 billion lire and expenditures of 11.5 billion. The ex- JAPAN. traordinary expenditures consist of the following: The Bank of Japan wholesale price index Million lire. registers a 3.5 per cent decrease in prices be- Past budget expenses to be liquidated 1,000 Bread subsidy loss 4,000-6, 000 tween June and July, or a 34.5 per cent decrease Public employees' cost of living subsidy 600-1, 000 since March, when prices were at their peak. War expenses liquidation 2, 000 Other business indexes show a similar or more Compensation for war losses in Venetian provinces. 1, 500 exaggerated trend downward, as is shown by Losses on railways 500 Loss on maritime State navigation, coal, etc 1,000 the accompanying table of quotations for spot silk, cotton-yarn futures, and shares of the As was stated in the last number of the BUL- Tokyo Exchange Co. and the Kanegafuchi LETIN, Giolitti has recommended very drastic Cotton Mill. Fluctations are due to speculachanges in taxation. The war-profits tax is to tive influences, but clearly the trend durmg the be raised from 60 per cent to 100 per cent, past five months has been radically downward. i. e., war profits are to be confiscated. Bearer bonds must be registered. To quote the Economist: "The last momentous bill obliges all Cotton n p ti o a e m s s s , e e w s . s h o i r T c s h h o e w f b s e i e r ll e c u p u r u i n t t i t s e i l s a t t n o o - e r d e n a g d y i s t t a o e l r m b t o e h a s e t r m e t r h i s n e e c o th u n e r l i i y - r Date of cable. R 1 Y a 0 h s w 0 p a o m o k k s t o a i , i - n lk . ; 6 b a m f m O l y u e a a t s o u r o a r n k n r k f e t e ; a h 4 ; t 0 s 0 ' E S x T h S c a o C t h r o k o e a c y s . n k o o g f e S K C h f a M a o u n r c t i e e t h l o s g l i . n a o - f form known to Italian investors. All securi- pounds. ties, from the States' rentes and municipality debentures to joint stock company shares and 1920. Yen. Yen. Yen. Yen. debentures, will cease to be bearer securities A M p ar r . . 2 16 3 3 , , 3 4 8 5 0 0 6 6 1 1 4 1 4 3 0 9 0 6 4 4 7 5 0 6 and will have to be registered in the name of Apr. 16 2,900 472 274 358 Mayl 2,000 400 230 335 the possessors. The precedent most frequently May 17 1,970 362 222 279 quoted in favor of this far-reaching reform is the J J u u n n e e 1 1 5 1 1, , 4 5 0 0 0 0 2 3 6 9 7 2 2 1 1 6 1 0 2 1 6 9 7 7 English one. The Government aims by means July 1 1,400 318 188 243 July 16 1,250 352 125 245 of compulsory registration of all securities at Aug. 2 1,100 330 122 247 knowing exactly the capital and income of all Aug. 10 1,190 292 112 214 taxpayers." Taxes on motor cars have been increased to such a point that the possession of On August 2 the note circulation of the Bank a car is prohibitive except to the very rich, and of Japan had advanced from 1,038 million yen succession taxes in the case of large fortunes on June 30, 1919, to 1,202 million yen and have been very much increased. was over three times as great as in 1913. Other Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

SEPTEMBER,, 1920. FEDERAL RESERVE BULLETIN. 961 basic indexes are presented in the following During July exports of merchandise from table: Japan were valued at 157 million yen, imports at 154 million yen. This would seem to show the likelihood of the trade balance turning s h p R a o a m t k , w i a Y n , s . 1 o il 0 k k 0 o- C E b o x p a ( t f c o l O t u e h o u t s a n n o u a n d f r k y e g s 4 a a . e 0 r ) 0 n , c T S S h h E o C t a o o a k x o n f c r - y . g e k o e s C K f M o u g a c t a i n t h l - o l e i . n - W T 1 p 1 9 s o h 0 r i a 1 n k i o 0 l 3 c e y ) l = e . e o - l c ( N a J 3 i t r u 0 o i c ) o n t u . e n e - y p f t r h e o o e a s m i r f t s i i , o r t s n a h t . s e s w i s x S a o s u - m c c p a o h o l n l i e w t n d h t a s e s d " o u u o s f n u u t f a h t a l v e l i y n o y r t e t a h h a b e e r l e l c t a " a o s s t e a p n o i f u n s a i m v t p i o b o re r n e a w r b o a o l f e r f the BULLETIN. The following table shows the Yen. Yen. Yen. Yen. Million position of the merchandise and bullion bal- 1913 H. 1,025.000 H. 158.800 Yen. ances from 1913 through the first half of 1920. L. 840.000 L. 129.050 A. 859.380 A. 149. 621 143.29 108.14 100 371 1914 H.I, 030.000 H. 135. 450 Japanese foreign trade, 1913-1920. L. 700.000 L. 88.700 A. 883.790 A. 113.991 130.33 99.80 96 362 [Unit—1,000 yen.] 1915 H. 1,150.000 H. 130.500 L. 735.000 L. 98.650 [Minus sign indicates excess of exports. Plus sign indicates excess A. 830.080 A. 114.152 164.85 118.32 97 337 of imports.] 1916 H.I, 350.000 H. 196.350 L. 1,030.000 L. 122.950 A. 1,170.630 A. 146.521 315.82 194.58 117 429 Commodities. Bullion. 1917 H. 1,750.000 H. 465.000 L A . . 1 1 , , 1 3 2 0 5 2 . . 0 9 0 1 0 0 L A . . 1 2 6 5 8 2 . . 9 6 5 4 0 5 239.11 246.84 149 606 Exports.Imports.Balance p E or x t - s. p I o m rt - s. Balance. 1918 H.I, 620.000 H. 424.900 L. 1,300.000 L. 288.000 A. 1,477.813 A. 174. 54 244.07 197 787 913: 1919 H. 3,280.000 H. 699.000 First half 284,554 404,982+120,42816,944 20- 16,924 L. 1,300.000 L. 309.500 Second half.. 347,907 324,450- 23,457 10,149 - 9,148 A. 2,096.917 A. 310.55 343. 22 240 1,038 1914: 1920" First half 312,070 382,734+ 70,66410,643 1,478- 9,165 Mar. 16.... 3,450.000 614.000 400.00 470.00 1321 Second half.. 279,032 213,002- 66,03019,007 7,629- 11,378 Aug. 10 ... 1,190.000 292.000 111. 50 2 214.00 ^239 31,202 1915: First half 300,914 288, 743- 12,17125,817 3,3 - 22,437 Second half.. 407,~~~ 243,707-163,68618,749 20,916+ 2,167 1 March and July numbers. 1916: 2 Reserves of this corporation increased strikingly during the war First half 469,566 380,441- 89,125 3,585 29,980 + 26,395 period, and its present financial strength is much greater than before Second half.. 657,902 375 987-281,915 24,495 71,050+ 46,555 the war. 1917: 3 Aug. 2,1920. First half 708,520 447,948-260,572 65.448172,987 + 107,539 Second half.. 894,485 587,863-306,622 88,034 219, 237 +131,203 According to figures of the Bank of Japan, 1918: First half 896,923 839,882- 57,041 4 1,817 + 1,81* promotion of new business and expansion of Second half.. 1,065,177 828,262-236,915 934 3,199 + 2,265 old has been made on an enormous scale dur- 1919: First half.... 827, ,049, 370 +221,950 0 712 + 712 ing the first three months of the year. Capital Second half.. 1,271,453 1,124,090-147,363 5,054 326,765 +321,711 1920: First half... 1,138,4791,611, 8"84 +473,405 issues were offered to the public to the amount of 4,164 million yen between January and Group index numbers—Australian Commonwealth—Bureau June, 1920. This exceeded the issues of the of Census and Statistics. same period in 1919 by 3,020 million yen. [July, 1914=100.] Eighty-nine per cent of the issues were made between January and April. This enormous expansion of business is thought to have had an important bearing upon the recent business situation, increasing money stringency and the Date. importation of raw materials and equipment goods from abroad. Classified figures of capital issues offered to the public. [Unit—1,000 yen.l July, 1914.. 1915 1916 Groups 1915 1916 1917 1918 1919 '1920 1917 .1918 Banking 30,918 39,333 188,449 240,453 642,620 569,054 191 • Finance and ware- July house 1,800 .,100 40,020 65,273 112,180 199,595 August Insurance 12,400 25,000 15,500 60,400 76,800 40,500 September. Transportation 66,140 84,375 223,315 311,975 453,925 444,966 October Mining 1,970 66,850 187,995 297,790 289,430 202,485 November. Electric enterprises 41,462 75,309 92,617 155,815 460,963 126,445 December.. Manufacturings... 107,133 31'00:,760 586,585 878,7701L, 209,997L, 456,337 Marine products.. 1 675 4,100 10,650 32,590 48,200 1920. Agriculture and January forestry 1,410 3,050 25,000 35,615 178,370 139,370 February.. Commerce, etc 27,670 43,815 192,338 621,726 611,600 937,208 March April Total 292,578 658,692 1,562,469 2,676,79: 4,068,475 4,164,160 May June July 1 January-June period .laoc d<na slateM zS 1 100 117 154 213 220 186 182 182 186 184 186 189 192 205 205 214 214 211 1 ,selitxeT 100 93 131 207 232 226 229 225 243 254 259 273 283 281 277 265 260 252 .stcul o 2 :utlucirgA 1 100 202 113 110 135 168 190 200 236 238 224 227 226 226 234 252 261 244 <orp yriaD 100 127 124 116 121 141 135 138 141 142 142 143 149 162 169 177 187 188 .occaD o xi ;seirecorG 100 110 127 131 138 148 150 149 152 151 156 156 161 160 192 197 195 193 .taeM 7s •3 1 100 150 155 155 147 148 145 152 154 132 132 147 149 126 160 170 208 261 ] gnidliuB 100 100 116 149 136 172 194 243 245 315 243 277 249 277 259 263 271 272 278 267 281 266 282 287 272 298 280 298 28o 307 297 307 297 307 283 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

962 FEDEKAL RESERVE BULLETIN, SEPTEMBER, 1920. Group index numbers—Sweden, Svensk Handelstidniny. Group index numbers—Canadian Department of Labor— Continued. [1913=100.] [1913 = 100.] Hides, Build- Fuel Drugs Date. Date. lea e t t h c. er, Metals. m Im e p n l t e s - . t i e n r g i a m ls a , - li a g n h d t- ch a e n m d ilumber. ing. cals. 1913. 100 100 100 100 100 100 1914 105 96 101 100 94 106 1915 110 128 106 97 92 160 1913-14 100 100 1916 143 167 128 100 113 222 19141 123 111 1917. . 168 217 174 118 163 236 1 1 9 9 1 1 6 5 2 1 6 7 6 7 166 1 14 2 9 0 1918 169 229 213 147 188 250 1917 551 212 1919. 1918 856 July 235 166 226 168 194 195 August 260 171 228 170 199 196 1919. September 256 171 231 183 200 197 July 732 October 252 165 225 188 201 198 August 795 November 252 171 232 194 201 181 September December 231 181 232 224 209 189 October 170 November 840 204 1920. December 840 204 January 237 191 235 232 212 190 February 245 199 231 243 215 189 1920. March 222 210 237 268 215 194 January 204 April . 239 214 237 268 245 201 February 226 May 215 213 237 295 257 203 March 960 275 June 186 207 238 295 279 206 April 1,008 275 July 183 209 242 282 295 218 May 1,069 275 June ! 1,252 303 July 1,252 303 August 1,117 328 322 Group index numbers—United States, Bureau of Labor Statistics. 1 Average for six months ending Dec. 31,1914. [1913=100.] Group index numbers—Canadian Department of Labor.1 [1913=100.] Date. f G o a d r n a d i d e n r s . m m A a e n a n a d l i t s - s. D p u r c a o t i d s ry . - t F a v a r b e n u g l d i e e t s s - . f O o t o h d e s r . t T il e e x s - . Date. : SI 3 s a> 1913 100 100 100 100 100 100 1914 114 107 100 99 104 102 1915 136 104 105 93 121 114 1913 100 100 100 100 1916. 142 121 119 130 136 148 1914 88 1917 206 161 149 233 isa 201 1915 94 1918 231 197 168 214 213 273 1916 142 117 1917 208 153 1919. 1918 181 192 July 240 217 186 200 218 279 August 243 216 189 210 224 277 1919. September 232 201 193 195 227 283 July 221 October 232 180 204 178 228 290 August 225 November 240 176 221 240 230 298 September... 217 December 251 182 230 240 232 306 October 220 November... 220 1920. December 220 January 269 195 228 265 245 316 February ... 275 195 216 290 251 321 1920. March 280 198 206 295 254 322 January 227 April. .. 291 200 196 316 264 366 February 227 May 301 207 189 358 275 323 March 230 June.. . . 302 206 183 MO 274 314 April 238 July 292 210 194 295 283 305 May 246 June 247 July 243 i Unimportant groups omitted. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

SEPTEMBER,, 1920. FEDERAL RESERVE BULLETIN. 963 Group index numbers—Calcutta, India, Department of Statistics. [End of July, 1914=100.] Date. Date. •a End of July, 1914. 100 100 100 100 100 100 100 100 End of July, 1914. 100 100 100 100 100 100 100 100 August, 1918 317 83 240 328 240 August, 1918 89 96 95 179 U19 September, 1918.. 314 75 217 331 217 September, 1918.. 105 116 196 1134 August, 1919 224 193 179 225 179 August, 1919 143 235 106 271 U79 September, 1919.. 214 156 215 199 215 September, 1919.. 131 109 292 U77 1920. 1920. January 118 225 226 253 356 214 181 153 January 159 125 200 377 207 167 204 February 118 217 215 233 364 185 164 158 February 155 123 190 363 191 158 199 March 127 218 222 211 351 179 150 159 March 135 118 166 321 160 151 192 April 114 201 219 209 357 158 170 161 April 116 119 163 377 159 156 185 May 128 215 248 160 365 135 142 164 May 123 120 169 511 150 157 183 June 131 233 244 116 364 144 147 164 June 119 83 171 482 149 156 180 July 139 235 249 100 364 132 151 168 July 119 169 503 159 151 188 i Includes pulses. WHOLESALE PRICES IN THE UNITED STATES. In connection with the Board's project of Index numbers of wholesale prices in United States—Federal constructing foreign indexes of wholesale Reserve Board. prices, an American index number has been [Average prices 1913=100.] made by a method similar to that to be used in the case of the foreign countries. A description of the composition and construction Date. d G u p o c ro o e - d d. s p I e o m d r . - t- p E e o d x r . - t- su C m on e - d. of this new American index number is contained in the BULLETIN for May, 1920. Certain 1913. changes have been made in the number since January 100 105 100 its first publication, due to the fac.t that more February... 100 104 100 March 100 103 99 reliable quotations have been obtained for two April... 101 101 99 commodities (lumber and fuel oil), but it is J M u a n y e... 1 10 0 0 0 10 9 0 9 10 9 0 9 now published in its revised form. July 100 99 99 August . 100 101 99 The organization of the commodities is in September... 101 100 102 October . 101 98 103 part similar to that used by the Board in November.. 99 98 102 recomputing the index numbers of the Bureau December... 98 93 99 of Labor Statistics. But additional informa- 1919. January 197 168 200 tion is also given regarding the movement of February 191 168 192 prices of goods produced here, imported, and March 193 163 194 April. 198 165 194 exported. May 204 172 211 June 204 180 214 During the present period of rapid change July 214 176 224 in prices, it is especially important to note the August 221 174 219 September... 215 170 212 differences in fluctuations and level shown by October . 215 174 226 different index numbers. For that reason in N De o c v e e m m b b e e r r . . . . . . > 2 2 3 2 1 2 2 1 0 7 3 9 2 2 4 4 2 5 future numbers of the BULLETIN the differences 1920. between the index number of the Bureau of January . 244 212 255 Labor Statistics and that of the Board will be M Fe a b rc r h uary... 2 2 4 5 4 0 2 2 1 1 6 8 2 25 5 6 2 commented upon. Charts showing the fluctu- April 265 242 264 May 266 246 262 ations in the Board's index numbers are to be June 261 226 256 found on the opposite page. July. 255 204 248 O OO C Raw Pro- Con- mate- ducers'sumed All. rials. goods. goods. 99 105 99 100 99 105 99 100 100 105 99 101 101 103 99 101 100 100 102 99 100 100 100 101 101 100 100 98 101 102 100 101 101 100 101 101 101 102 98 101 101 100 102 96 101 100 98 100 95 101 99 97 98 91 99 97 195 195 193 196 195 190 190 191 188 189 191 196 185 188 191 196 201 181 197 196 201 209 184 202 202 202 208 192 202 203 21 ] 217 200 211 211 218 217 206 224 218 212 211 203 216 211 211 213 207 214 212 217 220 213 219 219 225 229 223 225 226 240 245 236 240 242 242 242 247 240 242 247 246 263 241 248 263 263 274 257 263 264 263 274 261 264 258 258 265 256 258 251 250 251 254 251 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

964 FEDERAL RESERVE BULLETIN. SEPTEMBER, 1920, iflDEXNUMBERSOFWHOLESALEPRICES. iflDEXNUMBffiOFHmOLESALE PRICES INTHE UNITED STATES-1919,1920. INTHE UMTED STATES-1919,1320. — &<m'Materials. /JU, Commodities. • Gbnsumers'Good*. • «.— Goods exported. •• AVERAGE PRICE LEVEL OF 1913 = 100. AVERAGE PRICE LEVEL 0ri9I3= fOO. 300 300 300 280 280 280 280 260 260 260 260 240 240 240 240 220 220 220 220 m 200- 203\ 200 180 180 '/SO 160 160 160 HO 140 140 140 120 120 !Z0 120 too 100 too 100 t X 1919 .. 1920 1919 1920 Index numbers of wholesale prices in the United States for principal classes of commodities. [Bureau of Labor Statistics.] [Average price for 1913=100.] Raw materials. All commodities Year and month. Producers' Consumers' (Bureau of pr F od a u rm cts. p A ro n d i u m c a ts l . pr F o o d r u e c s t t s. p M ro i d n u e c r t a s l . m To at t e a r l i r a a ls w . goods. goods. t L i n s a t u i b m c o s b r i e n S r d ) ta e . - x July, 1914 102 106 97 91 99 93 103 100 July 1915 111 104 93 97 102 99 101 101 July 1916 114 122 96 115 113 140 119 120 Julv 1917 232 168 126 205 187 210 175 187 July, 1918 240 210 140 182 198 196 203 198 July 1919 261 233 166 177 214 202 230 219 January 1920 291 213 273 190 239 245 259 248 February 1920 278 206 315 194 240 246 256 248 March 1920 288 200 348 197 247 246 263 253 April, 1920 . . 304 196 367 224 260 263 280 266 May 1920 314 • 179 367 234 260 271 285 272 June 1920 301 186 363 244 260 265 280 269 July, 1920 287 184 359 250 257 252 272 262 In order to give a more concrete illustration of actual 1920, to July, 1920, compared with like figures for July price movements, there are also presented in the following of previous years. The actual average monthly prices table monthly actual and relative figures for certain com- shown in the table have been abstracted from the records modities of a basic character, covering the period January, of the United States Bureau of Labor Statistics. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

SEPTEMBER, 1920. FEDERAL RESERVE BULLETIN. 965 Average monthly wholesale prices of commodities. [Average price for 1913=100.] Corn No. 3, Cotton, middling, Wheat, No. 1, Wheat, No. 2, Cattle, steers, Hides, packers, Chicago. New Orleans. no M rt i h n e n r e n a p s o p l r i i s n . g, re C d h w ic i a n g t o e . r, goo C d h t i o c a c g h o o . ice, st h e e e a r v s, y C n h a ic ti a v g e o. Year and month. p A b r v i u c e s e r h a e p g l e . e r p R t r i e i v c l e a e - . p A p r v i o c e u e r n a p d g e . e r p R t r i e i v c l e a e - . p A b r v u ic e s e h r a p e g l e . e r p R t r i e i v c l e a e - . p A b r v u ic e s e r h a p e g l e . e r p R t r i e i v c l e a e - . p A p r o v ic u 1 e e 0 n r 0 a d p g s e e . r p R t r i e i v c l e a e - . p A p r v i o c e u e r n a p d g e . e r p R t r i e i v c l e a e - . July, 1914 $0.7044 114 $0.1331 105 $0.8971 103 $0.8210 83 $9.2188 108 $0.1938 105 July, 1915... .7806 127 .0869 68 1.3901 159 1.1611 118 9.2125 108 .2575 140 July 1916 .8041 131 .1303 103 1.1703 134 1.1597 118 9.9850 117 .2700 147 July, 1917... 2.0393 331 .2525 199 2.5815 296 2.3310 236 12.5600 148 .3300 179 July 1918 1.5900 258 .2945 232 2.1700 248 2.2470 228 17.6250 207 .3240 176 July, 1919... 1.9075 310 .3377 266 2.6800 307 2.2580 229 16.8688 198 .4860 264 January, 1920... 1.4750 240 .4035 318 2.9313 336 2.6338* 267 15.9375 187 .4000 218 February, 1920 1.4125 229 .3944 311 2.6875 308 2.4900 252 14.9688 176 .4025 219 March, 1920... . 1.5515 252 .4060 320 2.7550 315 2.5000 253 14.4000 169 .3640 198 April, 1920.. 1.6913 275 .4144 326 3.0063 344 2.7725 281 13.9063 163 .3613 196 May, 1920 1.9825 322 .4038 318 3.0750 352 2.9750 302 12.6000 148 .3538 192 June, 1920 1.8390 299 .4030 317 2.9000 332 2.8950 294 15.0313 177 .3410 185 July, 1920 1.5388 250 .3950 311 2.8313 324 2.8050 284 15.3813 181 .2944 160 H C og h s i , c a l g ig o h . t, g W ra o d o e l s , , O s h co io u , r e J d -| . Hem Y lo o c r k k , . New Y N e f e l l l w o o o w r Y i n p o g i r n k e . , s C to o v a t e l i , d , a N e n w e t w a h t r e a Y r c . o it r e k , , Co r a C u l n , i n b o c i f i t n u m n m a i i n t n i e . o , usr Year and month. p A p r o v ic u 1 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 t 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 l e a e - . l p A o r n v ic 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 - . p A r s v i t h c o e e o r n a r . p t g e e r p R t r i e i v c l e a e - . July,1914 $8.7563 104 $0.4444 94 $24.5000 101 $42.0000 94 $4.9726 98 $2.2000 100 July, 1915... 7.5750 90 .5571 118 38.50Q0 86 4.9571 98 2.2000 100 July, 1916 9.7650 116 .6857 146 23.7500 98 38.0000 85 5.4495 108 2.2000 100 July, 1917... 15 3750 182 1.2143 258 28.0000 116 57 0000 128 5.8859 116 5.0000 227 July, 1918 18.0000 213 1.4365 305 34.5000 142 60.0000 135 6.5968 130 4.1000 186 July, 1919 .. 22 3875 265 1.2364 263 41 0000 169 73 0000 164 8.1881 162 4.0000 182 January, 1920. . 15.1250 179 1.2364 263 53.0000 219 112.0000 251 8.4291 167 4.1000 186 February, 1920 14.9813 177 1.2364 263 57.0000 235 139.0000 312 8.4118 166 4.1000 186 March, 1920 15.5000 183 1.2364 263 57.0000 235 139.0000 312 8.4109 166 4.1000 186 April, 1920 . 15 7125 186 1 2000 255 57 0000 235 160 0000 359 8 4368 167 5.5000 250 May, 1920 14.7550 175 1.1636 247 57.0000 235 160.0000 359 8.9964 178 6.0000 273 June, 1920 15 3500 182 1 0000 212 57 0000 235 160 0000 359 9.3672 185 6.0000 27a July, 1920 15.8875 188 .9091 193 57.0000 235 160.0000 359 9.4580 187 6.0000 273 Coal, Pocahon- Coke, Connells- C e o l p ec p t e r r o , l i y n t g ic o , t, de L s e i a lv d e , r p iz ig e . d, Pe P t e ro n l n e s u y m lv , a c n r i u a d , e, Pig iron basic. tas, Norfolk. ville. New York. New York. at wells. 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 July 1915 2 8500 95 1. 7500 72 .1988 126 .0575 131 1.3500 55 12.7400 87 July, 1916 3.0000 100 2.6250 108 .2650 168 .0685 156 2. 6000 106 18.0000 122 July, 1917 5.1400 171 12.2500 502 .3175 202 .1138 259 3.1000 127 52.5000 357 July,1918 4.6320 154 6.0000 246 .2550 162 .0802 182 4.0000 163 32. 0000 218 July,1919.. .. 5.1400 171 4.0950 168 .2150 137 .0561 128 4.0000 163 25.7500 175 January, 1920 4.6320 154 6.0000 246 .1931 123 .0872 198 . 5.0625 207 37. 7500 255 February, 1920 4.6320 154 6.0000 246 .1906 121 .0881 200 5.5125 225 42.2500 287 March, 1920 4.6320 154 6.0000 246 .1858 118 .0923 210 6.1000 249 41.6000 283 April, 1920. 6.4800 216 10.5000 430 .1919 122 .0896 204 6.1000 249 42.5000 289 May, 1920 6.4800 216 12.0000 492 .1906 121 .0856 195 6.1000 249 43.2500 294 June, 1920 . .. 6.4800 216 14.3000 586 .1900 121 .0848 193 6.1000 249 44.0000 299 July,1920 6.4800 216 14.3750 589 .1900 121 .0860 195 6.1000 249 45.7500 311 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

966 FEDERAL RESERVE BULLETIN. SEPTEMBER,, 1920. Average monthly wholesale prices of commodities—Continued. Average price for 1913=100.] n C or o t t h to e 1 n r 0 n / y 1 c . a o rn ne s, s, h L em ea l t o h c e k r , N so o l . e 1 , . S P B t i e t e e t s s l s b b e u i m l r l g e e t r h s , . , S ta te n b e k u l , r p g P l h a it . t t e s s - , o P S p i e t t e t n s e b l h u r e a r a i g r l t h s h , . , W 2 o - r 3 s b 2 te ' 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 tive price per tive pound. price. pound. price. long ton. price. pound. price. long ton. price. pound. price. July,1914 $0.2-150 97 $0.3050 108 $19.0000 74 $0.0113 76 $30,0000 100 $0.6500 84 July,1915 .1600 72 .3050 108 21.3800 83 .0120 81 30.0000 100 .8500 119 July,1916, ... .2525 114 .3700 131 41. 0000 159 .0345 233 35.0000 117 1.1000 142 July,1917 .4500 203 .5400 191 100.0000 388 .0900 608 40.0000 133 1.6000 206 July, 1918 . .. .6412 290 .4900 174 47.5000 184 .0325 220 57.0000 190 2.1500 277 July 1919 .5912 267 .5300 188 38. 5000 149 .0265 179 47.0000 157 1.6000 206 January 1920 .7271 -329 .5600 199 48.0000 186 .0274 185 50.7500 169 2.2500 290 February, 1920 .7465 337 .5700 202 55.2500 214 .0350 236 54.5000 182 2.2500 290 March, 1920 .7549 341 .5700 202 60. 0000 233 .0365 247 54.5000 182 2.2000 283 April 1920 .7784 352 .5700 202 60.0000 233 .0375 253 54.5000 182 2.2000 283 May, 1920 .7672 347 .5700 202 60.0000 233 .0375 253 54.5000 182 2.0000 258 June, 1920 .7299 330 .5700 202 60.0000 233 .0355 240 54.5000 182 2.0000 258 July, 1920 .7009 317 .5700 202 62.5000 242 .0338 228 54.5000 182 1.7500 225 Flour, wheat, st B e g e e o e r o s f d , , c C n a a h r t i c c i a v a s g e s o , . Coffee, Rio, No. 7. st ( a 1 n 91 d 8 a w , r d a s r t ) a p , n a d te a n rd ts Ham C s h , i c s a m g o o k . ed, Ill 1 u N 5 m 0 e ° w i n f i a Y r t e i o n t r e g k s . o t, il, S N ug e a l w a r , t Y e g d o r , a r n k u . - Minneapolis. 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 pound. price. pound. price. barrel. price. pound. price. gallon. price. pound. price. July,1914 $0.1350 104 $0.0882 79 $4.5938 100 $0.1769 106 $0.1200 97 $0.0420 98 July 1915 .1315 102 .0738 66 7.0313 153 .1610 97 .1200 97 .0582 136 July,1916 .1413 109 .0900 81 6.1000 133 .1900 114 .1200 97 .0750 176 July 1917 .1638 126 . 0950 85 12.7500 278 .2395 144 .1200 97 .0745 174 July, 1918 .2400 185 .0855 77 10.7020 233 .3025 182 .1710 139 .0735 172 July 1919 .2075 160 .2303 207 12.1550 265 .3835 230 .2050 166 .0882 207 January, 1920 .2320 179 .1628 146 14.4438 315 .2944 177 .2240 182 .1537 360 February, 1920 .2125 164 .1478 133 13.5375 295 .3056 184 .2400 195 .1495 350 March, 1920 .2050 158 .1500 135 13.1650 287 .3155 190 .2500 203 .1372 321 April, 1920 . . .. .2090 161 .1514 136 14. 2813 312 .3313 199 .2600 211 .1919 449 May, 1920 .1950 151 .1559 140 15.0313 328 .3556 214 .2600 211 .2247 526 June 1920 .2225 172 .1498 135 14.1600 309 .3650 220 .2600 211 .2120 497 Julv 1920 .2550 197 .1306 117 13.6688 298 .3769 227 .2600 211 . 1910 447 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

DISCOUNT AND INTEREST RATES. In the following table are presented actual discount and interest rates During the month under review increases in rates are found only in a prevailing during the 30-day period ending August 15, 1920, in the various relatively small number of cases, while a somewhat lesser number of decities in which the several Federal Reserve Banks and their branches are creases are noted. These changes in rates are scattered, and on the whole located. A complete description of the several types of paper for which not pronounced, either for any particular centers or types of paper. In quotations are given will be found in the September, 1918, and October, many centers rates remain unchanged. Present rates continue higher in 1918, FEDERAL RESERVE BULLETINS. Quotations for new types of paper almost all centers than rates during the same period of 1919. will be added from time to time as deemed of interest. Discount and interest rates prevailing in various centers during 30-day period ending Aug. 15, Prime commercial paper Customers'. Open ]market. Eistrict. City. 30 to 90 4 to 6 30 to 90 4 to 6 days. months. day. months. H X. G H. X G H. X. G H. X. No 1 Boston 8 ft 7 8 7 8 7\ 8 No 2 New York *. 8 ft 6-7 8 ft 6-7 8 8 8 8 g Buffalo 7 6 7 6 No 3 Philadelphia ft ft 6 6 ft 6 8 8 8 8A 8 No 4 Cleveland 71ft 7 7 ft 7 Pittsburgh 6 6 6 6 6 8 8 8 8 8 Cincinnati 6 7 6 6i 61 71 6 No 5 Richmond ft ft ft Baltimore ft ft 6 ft ft 6 No 6 Atlanta 8 ft 7 8 ft 7 Birmingham 8 ft 7 8 ft 7 81 ft 71 ft Jacksonville 8 ft 7 8 ft 7 8 ft 7 g ft New Orleans 8 6* 7-8 8 617-8 8 8 8 8 8 Nashville 8 6 7 8 7 No 7 7 7 7 7 Detroit 7 7 7 7 7 7 8 71 8 8 71 No 8 St Louis 7* ft* 7 7* 7 Louisville.. 6*ft" 6 6" ft 6 8 8 8 8 8 Memphis2 Little Rock 8 7 7 8 7 7 No.9 Minneapolis 7 ?* 8 71 8 71 ? No 10 Kansas City ft 8 8 8 8 Omaha 8*7 8 8*7 8 8 7 8 8 7 Denver ft 7 ft 7 8+ 8 8 81 8 No 11 Dallas 8 ft 7* 8 7 8*8 8 8 J El Paso 0 ft 8 0 ft 8 q 6} 8 q Houston ft* 7 7 7 7 No 12. San Francisco... 7* ft 7 ft 61 8 7| 8 8 Portland 8 fti 7 8 61 7 8 8 8 8 Seattle.. 8 ft* 7 8 ft1 7 ft 8 Spokane 8 ft* 7 8 ft 7 Salt Lake City.. 8 7 8 8 7 8 8 7 7* 8 Los Angeles 8 6 7 8 6 7 8 8 81 OO Bankers' acceptances. Collateral 60 to 90 days. or Interbank loans. Indorsed. Un Demand. indorsed. G H. X. G H X. G H. X. G H. I 8 7 6 ft* ftl 6| 6f 6* 8 8 8 7 ft 7 4 gi 8 5|61_7J 11 7 6 7 8 ft ft ft 61 6J 6| 61 ft 7 6 6| 6f 8 8 6 6 6 51 6 61 7 7 6 6 61 6 ft 6 6 ft 6 ft 6 ft ft 8 6 7 7 7 7 7 7 7 71 8 6 7 7 ft g 7 7 7 8 8 7 8 7 8 7 7* 8 6 6 g 8 7 6| 7 6| 6i 7 ftf 8* 7* 71 61 8 ft g ft4 61 gf ftl 7 6 7 Ji 7 7 7 6i 6 61 6f 61 61 8 ft 7 8 q 6* 7i 8 8 ft* 7* 8 7 ft ft* 8 8 7 8* 6 6 6 8 7 6 6 6* g gi 7 6 61-7 8 8 8 ftl 7 ft 6 7 ft 8 8 ft 7 7 ftl 7 gi gi 7 6 7 4 7 8 8 7 8 8 8 7 5 6 7 6 6 7 7 7 oooo Ordinary loans—stock exchange loans to other current. C lo a a t n tl s 3 S w r e a e c r c u e e e t r h i c e p o . d t u s b s , e y c s c b e e u L o r c s t n i u i t b f d o r i e e s e m r d s t [m i e t b r e d y s s 3 months. m 3 o n to th 6 s. o e f d in n d e e s b 3. t- . a H X. G H. X G ax. G H X. a H X. 8 8 7* 71 8 7* 8 7 ft C'i ft 6-7 ft ft' ft 7 ft 6 7 ft g" 6 7 6 7 6 7 6 "10 ft 6 101 6 6 ft ft* ft g3 7 8 6 7 8 6 7 7 ft 6 6 6 6 6 6 6 6 6 6 6 6 6 6 7 7 7 7 7 7 71 7 61 6 6 ft 6 ft ft 6 6 ft? g g ft g ft ft 6 ft ft 6 6 6 6 ft ft ft 8 ft 7 8 ft 7 8 6 7 s 6 7 8 ft 7 8 ft 7 8 ft 7 8 6 7 8 6 71 8 6 7 8 ft 7 8 ft 7 8 7 7 9 6 71 8 7-8 8 6*7-8 8 6* 7-8 8 7 7-8 8 6 6-7 7 gi 7 8 7 f 6 t* 7 7 7 8 6 6* 7 7 8 7 7 6 7 7 7 7 6 g 7 6 7 7 7 7 7 7 7*fti 7 6* 7 8 7 7 g 7 ft* 6 ft ft 6 6 ft 6 ft 6 ft ft 6 ft 8 7 8 8 7 7 8 T 7 8 7 7 8 8 8 ? 8 8 8 8 8 ?* ?* 71 7 7 8 8 6* 7 7* 8 8 7 7 8 8 8 7 6 8 7 8 9 7 7 8 s 7 8 3 g gi 7 7 8 ft 7 8 g 7 8 ft 7 8 6 7 «4 \i 7 8 ft 7 8 ft 7 8 ft 61 8 6 71 8 7 7 8 ft 2 ft3 8 8 8 q 8 8 0 8 8 10 8 ft 0 7 8 7 7l 7 7 gi 71 8 71 7 7 8 g 7 7" 6* 7 gi 6* 7 6*. 6* 7 61 8 ft 7 8 ft 7' 8 ftt 7" 8 g£ 7 8 ft 7 8 7 8 6 7 9 g 7 7 7 7 8 6 8 8 ft 8 g g g 8 7 8 8 8 8 8 8 8 8 7 g 8 5 7 8 5 7 8 6 7 8 6 7 1 Rates for demand paper secured by prime bankers' acceptances, high 6, low 6, customary 6. 2 No report. CO Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

968 FEDERAL RESERVE BULLETIN. SEPTEMBER, 1920, PHYSICAL VOLUME OF TRADE. year ago. In comparing these figures relative to the iron and steel industries for July of this year with July of last year, it should be remembered that last year the industry In continuation of tables in the July FEDERAL RESERVE was just commencing to recover from the post armistice BULLETIN there are presented in the following table3 cerdepression. tain data relative to the physical volume of trade. The Lumber receipts at Chicago showed a falling off a? com- January, 1919, issue contains a description of the methods pared with June, although they were substantially in employed in the compilation of the data and the construcexcess of the figure for July, 1919. While both production tion of the accompanying index numbers. Additional and shipments oi lumber by western mills showed a falling material will be presented from time to time as reliable off for July as compared with June, production by southern figures are obtained. mills was well sustained and shipments were considerably In the textile industries a further decline n activity was in excess of June, although for both western and southern noted during the month of July. Wool consumption dur- mills (except western pine production) the figures were ing that month was approximately one-fifth less than dur- considerably below those for July, 1919. California shiping June, and materially below the figure for July, 1919, ments of citrus fruits 3howed a further seasonal falling off while the percentage of idle woolen machinery on the 1st and were somewhat less than during July, 1919. July of August for the majority of classe3 of machinery showed sugar receipts at North Atlantic ports, however, were a further increase over the percentage idle on July 1. materially in excess of receipts for June, and almost 50 Consumption of cotton showed a slight falling off during per cent greater than for July, 1919, while meltings were July, although the amount was somewhat greater than dur- somewhat greater for June, 1920, and raw stocks at the ing July, 1919, while the percentage of spindles active close of July were over 60 per cent greater than at the during the month was somewhat greater than during both close of June. Receipts of live stock at the 15 western June, 1920, and July, 1919. Imports of raw silk during markets showed a further decrease in the case of cattle July were considerably less than during June, the July and calves and hogs, although a seasonal increase in the figure being less than one-half that for July, 1919. case of sheep was noted. In all cases, however, ,he The production of bituminous coal during July showed figures were considerably less than for July, 1919, and a further slight increase over June and was likewise greater reflect the generally lighter movement which has been in than for July, 1919, while the production of crude petro- progress during the present year. Receipts of grain and leum also showed a similar increase. Anthracite-coal pro- flour at the 17 interior centers during July showed a duction during July remained substantially unchanged further increase as compared with June, but a considerable when compared both with June and with July, 1919. Pig- decrease as compared with July, 1919. iron production during July showed a further slight in- With the exception of April, 1920, railroad net ton crease as compared with June, although steel-ingot pro- mileage during the present year has been considerably in duction showed a considerable falling off. The unfilled excess of 1919, though less than at the peak during the orders of the United States Steel Corporation, however, late summer and early autumn. The onnage of vessels showed a further slight increase during July, and at the cleared during July showed a further increase over June close of that month were almost double the figure for a and was considerably in excess of the figure for July, 1919. Live-stock movements. [Bureau of Markets.] Receipts. Shipments. C c m a al t a v t r l e k e s e a , t 6 n s 0 d . m H a o r g k s e , 6 ts 0 . S m h a e r e k p e , t 6 s 0 . H m m o u a r l s r e e k s s e , t a 4 s n 4 . d T k o i t n al d , s a . ll C c m a al t a 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 , t 5 s 4 . m S a h r e k e e p t , s 5 . 4 H m m o u r a s l r e e k s s e , a t 4 s n 4 . d T k o i t n al d , s a . ll Head. Head. Head. Head. Head. Head. Head. Head. Head. Head. July, 1919.... 2,008,238 2,999,636 2,178,124 52,247 7,238,245 708,552 964,273 999,683 47,140 2,719,64a 1920. January 1,868,723 5,275,412 l,£6,051 138,541 8,842,727 752,605 1,665,274 669,458 138,145 3,225,482 February 1,468,370 3,423,992 1,387,111 108,056 6,387,529 591,691 1,287,169 572,634 110,827 2,562,321 March 1,803,073 3,963,245 1,255,490 82,584 7,104,392 570,323 1,399,485 483,550 87,896 2,541,254 April 1,512,150 3,030,801 1,441,072 48,036 6,062,059 593,362 1,119,205 724,718 47,998 2,485,283 May 1,766,394 4,234,022 1,421,009 40,901 7,462,326 771,865 1,374,902 769,718 40,021 2,956,506 June 1,870,121 3,741,202 1,592,450 33,205 7,236,978 789,982 1,295,973 768,172 34,545 2,888,672- July 1,657,743 2,837,685 2,000,758 37,231 6,533,417 721,328 1,095,470 1,015,612 38,715 2,871,125 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

SEPTEMBER, 1920. FEDEKAL RESERVE BULLETIN. 969 Receipts and shipments of live stock at 15 western markets. [Chicago, Kansas City, Oklahoma City, Omaha, St. Louis, St. Joseph, St. Paul, Sioux City, Cincinnati, Cleveland, Denver, Fort Worth, Indianapolis, Louisville, Wichita.] RECEIPTS. [Monthly average, 1911-1913—100.] Cattle and calves. Hogs. Sheep. Horses and mules. Total, all kinds. Head. Relative. Head. Relative. Head. Relative. Head. Relative. Head. Relative. July, 1919 1,527,881 152 2,411,539 110 1,558,767 114 37,646 82 5,535,833 120 1920. January 1,400,031 139 3,912,449 178 1,035,591 76 90,662 197 6,438,733 139 February 1,068,092 114 2,440,154 19 . 948,116 74 76,048 168 4,532,410 105 March 1,203,499 119 2,910,909 900,299 66 57,880 126 5,072,587 110 April . 1,040,903 103 2,150,281 928,191 68 31,235 68 4,150,610 90 May 1,209,656 120 3,128,249 142 796,160 58 25,469 55 5,159,534 112 June.. 1,290,265 128 2,746,390 125 1,006,528 74 21,316 46 5,064,499 110 July. . 1,188,019 118 2,115,639 96 1,301,458 95 26,697 58 4,631,813 100 SHIPMENTS. July 1919 515,071 127 691,283 143 694,942 32,616 79 1,933,912 135 1920. January 548,841 135 1,026,763 212 403,382 80 90,630 221 2,069,616 144 February 427,608 113 814,253 180 334,012 71 79,100 207 1,654,973 124 Itfarch 418,310 103 923,526 191 298,878 59 62,625 153 1,703,339 119 April 414,967 102 712,087 147 373,381 74 31,348 76 1,531,783 107 May 515,062 127 822,907 170 316,002 63 24,617 60 1,678,588 117 June... . . .. 528,273 130 797,946 165 399,613 79 22,623 55 1,748,455 122 July 508,199 125 737,923 152 644,557 128 28,168 69 1,918,847 134 Exports of certain meat products. [Department of Commerce.} [Monthly average, 1911-1913=100.] Beef, canned. Beef, fresh. Bee o f t , h p er i c c k u le re d d , . and Bacon. Ham de s r s a , n c d u r s e h d o . ul- Lard. Pickled pork. Pounds. R ti e v l e a . - Pounds. R ti e v l e a . - Pounds. R ti e v l e a . - Pounds. R ti e v l e a . - Pounds. R ti e v l e a . - Pounds. R ti e v l e a . - Pounds. t R iv e e la . - July, 1919... 5,392,104 814 8,680,524 700 3,320,564 124 117,679,193 703 47,452,834 318 68,163,734 155 2,392,515 54 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 February... 735,132 119 13,010,793 1,124 1,631,457 65 75,891,195 486 24,217,706 174 36,644,906 89 3,710,308 90 Ttfarch 847,397 128 6,036,166 487 2,290,835 86 75,002,410 448 31,088,859 208 69,429,785 158 3,160,456 71 April 1,606,737 243 17,687,306 1,426 2,241,460 84 24,356,349 145 15,640,236 105 40,758,401 93 2,784,535 63 May 5,976,493 902 4,304,038 347 3,056,449 114 50,412,388 301 17,896,764 120 55,544,483 126 3,816,157 86 June 6,787,622 1,025 12,526,669 1,010 2,563,702 96 60,730,935 363 21,277,089 143 45,069,517 102 3,962,649 CO July 5,217,838 788 5,506,812 444 1,973,004 74 31,562,761 188 8,385,089 56 47,061,422 107 2,926,247 66 Receipts of grain and flour at 17 interior centers. fChicago, 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 f l g o r u a r i . n i 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. July, 1919.. 49,612,115 18412,544,219 56 25,219,809 125 3,105,096 28111,155,491 156 101,636,730 131 1,572,420 80108,712,620 125 1920. January... 25,074,624 93 24,139,094 108 20,925,941 104 4,378,610 396 3,298,544 46 77,816,813 100,2,298,692 117 88,160,927 102 M Fe a b rc ru h ary.. 1 1 8 8, , 0 1 0 1 7 5 , , 3 7 2 9 4 8 7 6 2 7 ; |2 2 4 6 , , 3 0 0 5 6 1 , , 1 8 9 5 6 5 1 1 0 2 8 4 , ; 1 2 9 0 , , 1 5 4 7 9 5 , , 6 6 2 5 4 4 1 9 0 5 9 1 ,3 3 , , 2 5 6 4 3 8 , , 0 7 8 3 6 9 3 3 1 2 6 1 2 2 , , 9 4 2 7 8 0 , , 4 6 4 2 0 2 3 4 7 1 : 6 7 7 0 , , 9 4 4 7 0 7 , , 7 1 9 4 7 1 9 8 7 7 1 f2 , , 6 0 1 5 7 9 , , 5 4 4 2 4 1 11 8 3 3 7 7 9 5 , , 7 2 4 1 4 9 , , 5 7 3 4 6 5 9 8 9 7 April il5,260,236 57,11,326,509 50,12,952,593 64 2,914,553 263 2,245,881 3144,699,772 57 888,423 45 48,697,676 56 May 20,510,063 7612,107,950 54; 16,724,389 83 3,758,507 340 2,690,076 38 55,790,985 72,1,913,075 98 64,399,823 74 June 21,020,640 78 27,251,166 12114,260,053 713,177,770 287 2,721,367 38 68,430,996 88,2,113,979 108 80,057,876 92 July 2 29,816;261 11120,824,268 9318,734,180 93 3,096,026 280 2,661,181 37,75,131,916 96,2,044,235 104 84,330,974 97 i Flour reduced to its equivalent in wheat on basis of 4£ bushels to barrel. 'Flour receipts for Memphis not included; June receipts 13,825 barrels. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

970 FEDERAL RESERVE BULLETIN. SEPTEMBER, 1920. 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.] Total grain and Wheat. Corn. Oats. Rye. Barley. Total grain. Flour. flour.i Rela- Rela- Rela- Rela- Rela- Rela- Rela- Rela- Bushels. tive. Bushels. tive. Bushels. tive. Bushels. tive. Bushels. tive. Bushels. tive. Barrels. tive. Bushels. tive. July, 1919....12,421,962 8,102,440 5715,628,393 1031,546,885 219 9,132,509 234 46,832,189 95 2,589,681 76 58,485,754 1920. January 17,514,087 11412,326,051 87 15,822,099 104 3,685,914 521 2,007,718 5151,355,869 104 4,,140,314 122 69,987,282 108 February 14,114,215 98 I!,977,640 9113,073,089 92 2,113,505 320 1,306,340 36 421:,584,789 92 33,,156,962 100 56,791,118 94 March 11,027,336 7111,165,894 7"9 1.44,,:243,957 94,3,062,530 4'3""3"1.,574,887 40 41,074,604 83 "2{,,960,175 87 544,,1395,392 84 April.. 11,058,643 72 5,371,811 38 8,691,440 57|8,811,500 1,245 1,651,509 42 35i!, 584,903 721'., 702,132 50 433,,:244,497 67 May... 20,720,121 134 5,939,145 !0,444,288 135 6,977,479 9861,488,387 38 55.:, 569,420 112 21;,877,122 85 688,,;516,469 106 June... 20,242,046 13110,088,237 7112,805,056 84 5,428,886 7671,905,225 49 so1:,469,450 102 3,.071,470 9167.7,362,535 104 July... 19-196,561 124 9,100,527 6411,345,429 75 4,476,238 632 2,092,672 54 46',211,427 94 21,808,223 83 588,',!848,431 91 1 Flour reduced to its equivalent in wheat on basis of 4J bushels to barrel. Receipts of grain and flour at 9 seaboard centers. [Boston, New York, Philadelphia, Baltimore, New Orleans, San Francisco, Portland (Oreg.), Seattle, Tacoma; receipts of flour not availablefor Seattle and Tacoma.] [Compiled from reports of trade organizations at these cities.] [Monthly average, 1911-1913=100.] Total grain and Wheat. Corn. Oats. Rye. Barley. Total grain. Flour. flour.i 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. Rela- Bushels. R ti e v l e a . - July, 1919. 5,806,227 46 901,842 25 6,959,186 1461,478,551 1,0419,723,852 586 24,869,658 1101,514,135 145 31,683,266 116- 1920. January... 5,711,009 45 1,491,759 2,663,274 56 2!,, 643,6111,8611.,297,839 7813,807,492 611,561,1 150 20,835, 111 76* February.. 4,898,690 42 1,244,393 2,331,246 53 35,,212,668 2,4231,315,291 8""531,30,02,288 611,102,606 11317,964,015 70 March 6,486,745 51 1,203,649 3,646,727 77 41,,119,986 2,9001L, 300,871 '8 166,,757,978 74|1,752,860 168 24,645,848 90 April 5,441,434 43 1,317,555 1,546,590 33 3!;, 440,3502,421 685,054 41122,,430,983 55 843,916 81166,,:228,605 5ft May 10,621,723 84 767,332 2,382,271 50 5i,, 117,8063,602 556,764 34 19,445,896 86;l,301,211 125 2155,,301,346 92 June 13,374,721 106 1,878,284 3,194,897 >, 506,0534,—5791,191,767 72 26,145,722 1151,486,365 ;2, 834,365 120 July 18,710,633 149 3,305,542 3,499,101 >, 048,0193,553 21:.098,083 126 32,661,378 144'l,660,849 159 40,135,198 146> 1 Flour reduced to its equivalent in wheat on basis of 4J bushels to barrel. Stocks of grain at 8 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. Rve. Barley. Totai gram July,1919 5,557,644 265,196 3,760,063 867,491 5,528,176 15,978,57a 1920. January 485,491 711,501 2,398,639 2,397,156 2,587,543 16,580,330 February 634,682 948,239 1,571,209 2,671,743 2,340,787 14,166,660' March 280,682 851,287 1,351,457 2,389,321 1,891,862 12,764,609 April 704,155 967,475 389,958 1,944,350 ?,034,983 13,040,921 May 781,927 437,521 819,790 1,889,965 1,071,920 15,001,125 June 492,819 459,568 901,756 2,035,334 1,193,082 13,082,559* July 923,745 744,167 1,323,940 1,275,554 3,187,611 18,455,017 NOTE.—Figures for San Francisco include also stocks at Port Costa and Stockton. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

971 SEPTEMBER, 1920. FEDERAL RESERVE BULLETIN. 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 in s g p s i . nners' St i c o n l c o t k e s s e r i o a o t r f p m t o o o r w t n s n t s h a . n a d t Rela- Rela- Rela- Rela- Rela- Bales. tive. Bales. tive. Bales. tive. Bales. tive. Bales. tive. 1919-20. August 313, 25 238, 26 49,630 47 302,238 67 1,412,048 120 September 584, 47 260, 28 26,138 25 300,001 66 1,501,805 127 October 1,779, 142 1,029, 112 110,202 105 621,784 137 2,340,881 199 November.. • 2,369, 189 1,178, 128 245,237 233 1,155,324 254 2,616,383 222 December 2,147, 171 1,069, 116 242,940 231 1,214,337 267 2,765,040 235 January 1,526, 122 982, 107 205,233 195 793,453 175 2,470,496 210- February 1,003, 86 725, 85 138,084 141 374,093 2,510,482 213 March 757, 60 621, 68 108,573 103 270,269 2,276,737 193 April 559, 45 499! 54 48,565 46 276,805 2,148,038 182 May 316, 25 32 57,661 55 214,678 1,913,407 162 California shipments of citrus and deciduous fruits. [1911-1913=100.] Total, Oranges. Lemons. Total citrus fruits. deciduous fruits. Carloads. Relative. Carloads. Relative. Carloads. Relative. Carloads. July 1919 2,568 105 1,038 256 3,606 127 4,199 1920. January 2,457 100 630 156 3,087 108 123 February 2,683 118 852 225 3,535 133 139 March 4,715 193 651 161 5,366 188 155 April 3,720 152 508 125 4,228 148 22 May 5,048 206 1,353 334 6,401 225 24 June 3,294 132 1,576 389 4,870 171 1,263 July 2,822 115 664 164 3,486 122 3,179 Sugar. [Data for ports of New York, Boston, Philadelphia.] [Weekly Statistical Sugar Trade Journal.] [Tons of 2,240 pounds. Monthly average 1911-1913=100.] Raw stocks Raw stocks Receipts. Meltings. at close of Receipts Meltings. at close of month. month. Tons-. R ti e v l e a . - Tons. R ti e v l e a . - Tons. R ti e v l e a . - Tons. R ti e v l e a . - Tons. R ti e v l e a . - Tons. R ti e v l e a . - 1919. 1920. July 264,782 144 292,000 159 57,975 34 March 335,532 182 333,000 182 88,185 51 April 310,580 169 307,000 167 91,765 53 1920. Mav 254,616 138 286,000 156 60,381 35 January 208,554 113 181,000 99 37,986 22 June 301,318 164 319,000 174 50,666 29 February 316,667 184 269,000 157 85,653 50 July 386,328 210 325,000 177 82,279 48 Naval stores. [Data for Savannah, Jacksonville, and Pensacola. [In barrels.] [Compiled from reports of trade organizations at these cities.] Spirits of turpentine. Rosin. Spirits of turpentine. Rosin. Stocks at Stocks at Stocks at Stocks at Receipts. close of Receipts. close of Receipts. close of Receipts. close of month. month. month. month. 1919. 1920. July 23,598 30,656 76,561 235,707 March 1,876 4,819 14,660 103,443 April 7,644 3,996 27,029 98,517 1920. May 23,473 6,174 68,163 78,113 January 8,300 24,910 47,874 165,927 June 33,522 19,654 94,904 108,656 February 3,762 17,900 29,303 140,559 July 39,158 30,906 117,088 135,979 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

972 FEDERAL RESERVE BULLETIN. SEPTEMBER, 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 o ls f - . Pr t o io d n u . c- m S e h n ip ts - . b N m e u r i l m o ls f - . Pr t o io d n u . c- Ship- N m be u i r 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 l m o ls f - . Pr t o io d n u . c- m S e h n ip ts - . N b m e u r i l m o ls f - . Pr t o io d n u . c- m S e h n ip ts - . 1919. July 206 401,939 466,786 48 148,533 140,680 114 268,634 301,050 27,382 22,470 35 22,326 34,191 1920. January 202 386,481 406,706 144,180 128 327,568 344,568 38,007 63,614 24,678 26,283 February.. 203 383,239 369,047 85,583 147,180 124 332,511 295,934 32,551 59,687 15,534 15,202 March 205 436,944 424,775 130,425 156,211 123 342,948 329,012 43,771 61,620 29,633 29,896 April 205 438,056 359,461 167,165 133,114 126 359,651 274,597 46,222 61,757 13,659 10,613 May 205 430,271 347,404 183,621 132,181 124 424,687 383,346 12,731 26,323 15,992 18,657 June 204 385,293 287,487 197,461 125,770 127 343,801 271,815 25,771 41,557 14,259 10,481 July 207 385,842 331,273 177,262 103,500 127 242,612 225,666 37,459 49,668 20,756 15,217 Receipts and shipments of lumber at Chicago. [Chicago Board of Trade.] [Monthly average, 1991-1913=100.] Receipts. Shipments. Receipts. Shipments. M feet. Relative. M feet. Relative. M feet. Relative. M feet. Relative. 1919. July 200,148 94 90,134. 118 March 284,146 134 122,401 160 April 124,725 59 51 495 67 1920. May .. 187,931 89 89,259 116 Janu&rv 208 145 98 71,233 93 June 234 562 111 90 503 118 235,423 119 81,561 114 July 222,619 105 82,896 108 Coal and coke. [U. S. Geological Survey.] [Monthly average, 1911-1913=100.] Bituminous coal, esti- Anthracite coal, esti- Beehive coke, estimated mated monthly pro- mated monthly pro- monthly production. duction. duction. Short tons. Relative. Short tons. Relative. Short tons. Relative. 1919. July 42,698,000 115 7,803,000 105 1,503,367 57 1920. January 48,689,000 131 7,687,000 104 1,982,000 76 February 40,127,000 116 6.367,000 86 1,731,000 71 March 46,792,000 126 7,240,000 98 2,025,000 77 April 37,966,000 102 6,454,000 87 1,602,167 61 May 39,059,000 105 7,631,000 103 1,689,500 65 June 44,462,500 120 7,754,000 105 1,710,333 65 July 45,526,500 123 7,785,000 105 1,693,000 65 Crude petroleum. [U. S. Geological Survey.] [Barrels of 42 gallons each.] Produced. Produced. Stocks at end Stocks at end of month of month Barrels. Relative. (barrels). Barrels. Relative, (barrels). July, 1919 33,894,000 177 140,093,000 1920, April 36,201,000 124,991,000 1920. May 36,931,000 193 124,689,000 January 33,980,000 177 127,164,000 June 37,295,000 195 126,763,000 February 33,212,000 186 126,339,000 July 38,419,000 200 128,165,000 March 36,461,000 190 125,597,000 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

SEPTEMBER, 1920. FEDERAL RESERVE BULLETIN. 973 Total output of oil refineries in United States. [Bureau of Mines.] Crude oil run Gasoline Kerosene Gas and fuel Lubricating (barrels). (gallons). (gallons). (gallons). (gallons). June, 1919 28,920,764 338,336,985 178,974,224 632,205,805 64,636,153 1920. January 30,815,160 336,719,157 195,956,392 617,555,156 75,878,635 February • 29,208,723 322,588,697 194,523,334 589,684,857 74,243,073 March 33,592,004 367,137,678 191,110,175 686,945,963 81,818,973 April 32,852,040 355,597,451 184,469,017 643,088,785 85,568,064 May 34,578,282 381,079,291 180,877,089 707,198,355 89,252,410 June 34,906,078 415,158,911 173,581,000 689,878,061 94,964,221 STOCKS AT CLOSE OF MONTH. June 31,1919 16,775,723 593,896,610 252,542,434 811,790,637 175,384,775 1920. Jan. 31 13,200,727 515,934,364 327,548,646 652,080,901 141,690,177 Feb. 20 13,500,599 562,996,489 330,120,942 590,322,125 132,759,244 Mar. 31 14,346,458 626,393,046 334,617,117 580,182,858 130,630,597 Apr.30 15,145,691 643,552,644 376,358,123 590,687,009 140,355,972 May 31 15,331,375 577,671,795 419,077,605 618,939,135 135,882,485 June 30 : 16,172,280 504,055,601 421,343,353 641,968,363 133,212,551 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 ro n a m k -o e r s e . t s h h e i pm u e p n p t e s r Pig-iron production. Steel-in t g io o n t . produc- Un a S f t t i e l c l e e l l o d s e o C o rd o f e r m p rs o o U r n a t . t h i S o . . n Gross tons. Relative Gross tons. Relative, Gross tons. Relative. Gross tons. Relative July, 1919.. 9,173,429 2,428,541 105 2,508,176 104 5,578,661 106 1920. January.. 3,015,181 130 2,968,102 123 9,285,441 176 February. 2,978,879 138 2,865,124 127 9,502,081 180 March.... 3,375,907 146 3,299,049 137 9,892,075 188 April 230,854 2,739,797 118 2,638,305 109 10,359,747 197 May, 6,976,085 115 2,985,682 129 2,883,164 119 10,940,466 208 June 9,233,566 136 3,043,540 131 2,980,690 123 10,978,817 208 July 9,638,606 159 3,067,043 132 2,802,818 116 11,118,468 211 Imports of pig tin. [Department of Commerce.] [Monthly average, 1911-1913=100.] Pounds. Relative Pounds. Relative. July, 19W 113,120 March 11,980,019 132 April. 10,345,130 114 1920. May.. 9,102,341 100 January 8,772,953 97 June.. 11,232,325 124 February 13,925,843 164 July.. 17,584,167 193 Raw stocks of hides and skins. [Bureau of Markets; July, 1920, on, Bureau of the Census.] [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 July 31,1910 4,966,081 2,389,368 554,516 15,589,944 1,964,828 2,767,694 6,815,160 1920. Jan. 31, 773,360 1,920,184 1,036,372 13,474,529 927,436 1,893,614 8,902,067 Feb. 29 559,337 1,859,697 1,141,620 16,481,328 665,524 2,197,683 9,460,914 Mar. 31 558,300 1,930,218 966,850 15,968,660 468,188 2,047,519 9,227,252 Apr.30 072,895 2,281,370 834,711 14,666,590 156,871 1,947,499 8,911,681 May 31 831,341 2,720,610 922,782 14,120,171 791,150 2,253,785 8,978,852 June 30 212,946 3,107,393 915,499 14,562,713 60,999 2,070,471 10,993,228 NOTB.—Figures for July 31 are provisional. 9149°—20 6 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

974 FEDERAL RESERVE BULLETIN. SEPTEMBER, 1920. Textiles. [Silk, Department of Commerce; cotton and idle wool machinery, Bureau of the Census; wool consumption, Bureau of Markets.] [Cotton, monthly average crop, years 1912-1914 = 100; silk, monthly average, 1911-1913=100.] Percentage of idle woolen machinery on first of month to total reported. Cotton consumption. Imports of raw silk. Cotton spindles Wool con- Looms. Spinning spindles. active sumption during (pounds). Bales. Relative. month. i t n h W c a h n i d r 5 e e 0 e r d - 5 U 0 r n e -i e d n d e c r h S c e a t r s d o s. f Combs. Woolen. Worsted. Pounds. Relative. space. space. July, 1919 510,328 113 34,171,690 54,973,093 22.0 26.0 9.7 7.6 8.9 13.5 5,202,407 254 1920. January 591,725 132 34,739,071 63,059,862 14.5 18.5 8.8 7.2 9.1 10.2 4,855,989 237 February 516,594 123 34,668,643 55,247,652 12.2 17.6 7.6 6.9 7.1 7.9 3,696,121 194 March 575,704 128 34,667,747 58,344,602 14.9 19.8 9.8 7.0 10.3 11.7 2,491,651 122 April 567,839 126 34,346,737 57,887,832 13.1 16.9 9.6 7.1 9.5 7.0 2,227,857 109 Mav 541,080 120 34,066,236 50,649,381 15.2 18.2 10.6 6.7 11.5 7.0 2,505,798 122 June 555,521 124 34,503,754 40,679,920 26.8 22.4 21.1 15.9 23.1 14.2 3,221,177 157 July 525,405 117 34,666,842 32,372,064 42.5 32.3 38.0 35.0 42.0 32.7 2,581,920 126 August 49.5 29.9 39.6 33.4 45.5 37.6 Production of wood pulp and paper. [Federal Trade Commission.] [Net tons.] Wood News- Paper Wrap- Wood News- Paper Wrappulp. print. Book. board. ping. Fine. pulp. print. Book. board. ping. Fine. July, 1919.. 260,685 113,929 75,613 169,593 63,769 30,036 1920. 1920. April 350,194 128,269 95,251 199,395 75,347 33,493 January 302,541 129,663 96,419 211,934 70,109 32,886 May 363,815 129,230 92,856 213,475 70,511 31,575 February.. 266,191 114,235 85,532 176,855 61,574 29,202 June 337,115 130,380 94,957 215,131 72,987 34,121 March 327,143 127,847 95,851 207,863 68,403 33,671 July 312,334 129,853 95,526 218,771 73,487 34,078 Sale of revenue stamps for manufactures of tobacco in the United StaUs {excluding Porto Rico and Philippine Islands). [Commissioner of Internal Revenue.] Cigars. Cigarettes. Cigars. Cigarettes. Manu- Manufactured factured Large. Small. Small. tobacco. Large. Small. Small. tobacco. Number. Number. Number. Pounds. 1920. Number. Number. Number. Pounds. June, 1919 576,976,572 48,855,070 3,140,393,217 31,312,150 March 753,239,958 55,052,100 4,373,778,917 38,422,481 April 663,577,579 56,548,853 3,756,989,397 34,327,970 1920. May 676,227,828 59,943,280 3,953,345,380 34,875,839 January 663,634,243 58,837,900 4,528,760,833 33,608,313 February 593,832,200 43,358,500 3,536,117,847 31,531,460 Output of locomotives and cars. [Locomotives, United States Railroad Administration; February on, reports from individual producers; cars, Railway Car Manufacturer's Association.] Locomotives. Output of cars. Locomotives. Output of cars. s D hi o p t m i p c e e s d - . F p o c le o re t m e ig d - n . Do ti m c. es- Foreign. Total. s D hi o p t m i p c e e s d - . F p o c le o re t m e ig d - n . Do ti m c. es- Foreign. Total. Number. Number. Number. Number. Number. 1920. Number. Number. Number. Number. Number. July, 1919 121 73 2,777 6,936 9,713 March 3,053 2,040 5,093 April 2,313 1,934 4,247 1920. May 2,792 1,402 4,194 48 22 4,650 1,914 6,564 June 2,780 731 3,511 T*V"hrn&rv 3,960 1,066 5,026 July 122 54 2,731 434 3,165 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

SEPTEMBER, 1920. FEDERAL RESERVE BULLETIN. 975 Vessels built in United States, including those for foreign nations, and officially numbered by the Bureau of Navigation. [Monthly average, 1911-1913=100.] Gross Gross Number. tonnage. Relative. Number. tonnage. Relative. July, 1919. 245 397,628 1,645 1920. April. 164 251,442 1,040 1920. May.. 184 185,145 776 January... 115 253,680 1,050 June.. 198 267,076 1,105 February. 140 267,231 1,185 July.. 173 217,239 March 170 279,709 1,157 Tonnage of vessels cleared in the foreign trade. [Department of Commerce.] [Monthly average, 1911-1913=100.] Net tonnage. Per- Net tonnage. Percent- centage Rela- age Rela- American Foreign. Total. R ti e v l e a . - A c to a m n ta e t l r o . - tive. American. Foreign. Total. R ti e v l e a . - A c t a o m n ta e t l r o . - tive. July, 1919. 2,362,571 2,920,247 5,282,818 136 44.7 177 1920. April. 2,504,038 1,960,634 4,464,672 115 56.1 222 1920. May.. 2,729,790 2,436,247 5,166,037 133 52.8 209 January... 1,933,385 1,949,798 3,883,183 100 49.8 197 June. 3,199,274 3,141,913 6,341,187 163 50.5 200 February.. 1,702,407 1,628,212 3,330,619 92 51.1 202 July.. 3,302,538 3,616,052 6,918,590 178 47.7 189 March 1,836,716 2,040,538 3,877,254 100 47.4 187 Net ton-miles, revenue and nonrevenue. [United States Railroad Administration; March, 1920 on, Interstate Commerce Commission.] June, 1919 ... 31 953,366 000 1920 March 37,990,993,000 1920. April 28,490,595,000 January 34 769 722 000 Mav 37 884 967,000 February 32,758,789,000 June 38,179,565 Commerce of canals at Sault Ste. Marie. [Monthly average, May-November, 1911-1913=100.] EASTBOUND. * Grain w o h t e h a e t r . than Wheat. Flour. Iron ore. Total. Bushels. R ti e v l e a . - Bushels. R ti e v l e a . - Barrels. R ti e v l e a . - Short tons. R ti e v l e a . - Short tons. R ti e v l e a . - July, 1919 7,100,008 80 2,391,840 12 915,420 79 8,912,609 150 9,343,396 133 1920. April 6,008,000 4,274,611 162,630 454,726 May 11,904,942 134" 13,497,995 70 658,910 57 6,683,820 113 7,483,836 167 June 3,076,986 35 5,976,125 31 1,082,521 93 8,707,350 146 9,153,884 131 July. 3,133,419 35 7,838,470 41 1,171,250 101 9,235,086 156 9,749,701 139 WESTBOUND. Hard coal. Soft coal. Total. Total freight. Short tons. R ti e v l e a . - Short tons. R ti e v l e a . - Short tons. R ti e v l e a . - Short tons. R ti e v l e a . - July, 1919.. 344,462 111 2,037,265 106 2,572,756 103 11,916,152 125 1920. April.. 10,000 50,831 82,483 537,209 May.. 202,000 531,375 937,374 8,421,210 June.. 271,020 966,382 1,493,935 10,647,819 112 July.. 300,150 1,294,162 1,827,978 11,577,679 122 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

976 FEDERAL RESERVE' BULLETIN. SEPTEMBER, 1920. GOLD SETTLEMENT FUND. Fiscal operations of the United States net transfers of $170,833,500 to the agents' Treasury during the month of June, including fund, thus resulting in a decrease in the banks' the receipt of 744 millions of income and excess- aggregate balances in the fund of $38,765,740. profits taxes, the payment of about 154 millions Balances in the agents7 fund show a net of interest on United States securities, and the increase for the three-month period of $65,issue and redemption of Treasury certificates 333,500 as the result of net transfers from the of indebtedness aggregating 419 millions and banks' fund aggregating $170,833,500 and net 728 millions, respectively, also the redemption withdrawals of gold amounting to $105,500,000. of 201 millions of certificates of indebtedness On August 19, 1920, the aggregate balances in on July 1, arc reflected in the heavy volume of the two funds stood at $1,158,960,461, or clearings and transfers effected through the $26,567,760 more than on May 20, 1920. gold settlement fund during the three weeks Below are given figures showing operations ending July 1, 1920. A substantial increase in of the two funds for the period from May 21 to the volume of rediscount transactions effected August 19, 1920, inclusive: between the Federal Reserve Banks during the current three-month period accounts for the Amounts of clearings and transfers through the gold settleincrease from $1,472,168,698 to $1,688,008,156 ment fund, by Federal Reserve Banks, from May 21, 1920, to Aug. 19, 1920, both inclusive. in the volume of interbank transfers effected through the fund. Total clearings during the period, $21,035,992,496, show a slight decline Total clearings. Transfers. trom the record total of $21,756,273,548 for the preceding three months. The issue of 201 Settlements of— May 21-27 $1,647,566,920.77 $136,578,276.79 millions and redemption of 84 millions of May 2*-June 3 1,388,728,154.07 137,525,015.21 June 4-10 1,597,291,678.59 130,382,406.84 Treasury certificates about July 15 and the June 11-17 1,728,943,300.19 138,293,153.79 issue of 157 millions of certificates on August 16 June 18-24 1,784,299,225.60 136,070,189.64 June 25-July 1 1,706,101,790.77 151,148,083.76 account largely for the heavy volume of trans- July 2-8 1,413,372,297.71 150,390,045.41 actions through the gold settlement fund for J J u u l l y y 9 1 - 6 1 -2 5 2 1 1 , , 7 6 9 6 1 8 , , 9 7 8 3 7 7, , 9 4 6 9 0 5 . . 8 3 8 1 1 8 1 4 4 , , 3 8 9 2 8 7 , , 6 1 8 2 3 4 . . 5 3 8 5 the weeks ending July 22 and August 19. July 23-29 1,593,253,091.75 97,715,285.02 July 30-Aug. 5 1,480,494,498.89 130,908,606.48 Operations of the New York bank through A A u u g g . . 6 1 - 3 1 -1 2 9 1 1 , , 7 5 1 1 7 8 , , 1 0 2 9 3 2, , 6 4 4 3 8 2 . . 8 9 4 4 1 1 2 5 1 8 , , 4 3 4 2 6 4 , , 7 5 1 7 0 5 . . 2 4 4 5 the fund resulted in a net gain through settle- Total 21,035,992,496.31 1,688,008,156.56 ments of $44,241,404 and a net loss through Previously reported lor 1920... 33,033,509,607.48 2,438,654,091.14 Total since January 1, 1920 54,069,502,103.79 4,126,662,247.70 transfers of $142,006,588, thus indicating a net Total for 1919 66,053,394,214.47 7,930,857,773.95 movement of funds away from New York of T T o o t ta a l l f fo o r r 1 1 9 9 1 1 7 8 4 24 5 , , 3 4 1 3 9 9 , , 2 4 0 8 0 7 , , 0 0 0 0 0 0 . . 0 0 0 0 2 4 , , 8 8 3 1 5 2 , , 5 1 0 0 4 5 , , 0 0 0 0 0 0 . . 0 0 0 0 $97,765,184. The other three eastern banks,* as well as Chicago and San Francisco, show net Clearings and Transfers. increases in their gold holdings through settle- Total for 1920 to date $58,196,164,351.49 Total for 1919 73,984,251,988.42 ments and transfers, while all other Federal Total for 1918 50,251,592,000.00 Reserve Banks show net losses. Total for 1917 27,154,704,000.00 Total for 1916 5,533,966,000.00 Net deposits of gold in the banks' fund aggre- Total for 1915 1,052,649,000.00 gating $132,067,760 were more than offset by Total clearings and transfers" from May 20, ~~ 1915, to Aug. 20, 1920 216,173,327,339.91 Changes in ownership of gold. Total to May 21,1920. From May 21, 1920, to Aug. 19, 1920, inclusive. Total changes from May 21, 1915, to Aug. 20, 1920. Balance to Federal Reserve Bank. credit May 20, 1920, plus Balance. Decrease. Increase. net deposits Aug. 19,1920. Decrease. Increase. Decrease. Increase. of gold since that date. Boston $43,514,262.14 $4,177,317. 71 $28,564,594.62i $24,387,276.91 $67,901,539.05 New York $805,439,871.80 133,114,537.32 35,349.353.45$97,765,183. 87 $903,205,055.67 Philadelphia 40,"428"679."88 6,055!786.88! 46,462:549.59.. 40,406,762. 71 8357312." 59 Cleveland 178,715,372.67 27,439!112.88 972!959.32 38,533,846. 44 249,219.11 Kichmond 18,825,199.01 25,674!795.13 798,108.05| 6,876,687.08 948,511.93 Atlanta 56,226,909.57 21,161,414.50 6oo;948.57) 16,560,465.93 666,443.64 Chicago 11,218,927.95 56,751,175.08 232;325.52'... 24,481,150.44 700,078.39 St. Louis 66,134,700.62 9,684,883.01 124694.101 1,560,188.91 574,511.71 M Ka in n n s e as a p C o i l t i y s 2,601,455.44 29,243,270.38 2 1 5 4 , , 7 5 6 21 0 , , 7 64 7 1 4 . . 6 8 8 0 991; 0 0 7 2 1 9 . . 9 9 4 3 8,53 8 0 2 , , 7 6 0 1 2 1 . . 7 8 4 7 11,132,158.18 160,658.51 Dallas 37,276,510.44 18,369,044.36 678,786.34 13,259,258.02 017,252.42 San Francisco 326,457,494.58 24,065,118.12 109;180.04 16,826,061.92 283,556.50 891, Total 808,041,327.24 808,041,327.24 366,775,601. 47 366,775,601. 47 144,635,098. 42144,635,098. 42 914,337,213.84 914,337,213.84 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

977 SEPTEMBER, 1920. FEDERAL RESERVE BULLETIN. Combined statement from May 21, 1920, to Aug. 19, 1920, inclusive. GOLD SETTLEMENT FUND/ Aggregate Aggregate Transfers. Federal Reserve Bank of— M B s a t a a l y a t e n 2 m 0 ce , e 1 l n 9 a 2 t s , 0 t . with G dr o a ld wals. de G po o s ld its. a w n t i o d t h a t d r g r a e a n n w s t f ' a e s l r s s a fr n o d d m e t p r a a o g n s e i s t f n s e t r 's s fund. fund. Debits. Credits. Boston $27,647,867.71 $970,550.00 $7,500,000.00 $40,970,550.00 $17,500,000.00 $326,701,184.23 $190,687,327.67 New York 128,023,780.62 13,436,143.30 18,526,900.00 13,436,143.30 18,526,900.00 331,112,739.76 189,106,152.20 Philadelphia.. 31,293,211.88 2,237,425.00 25,500,000. 00 52,237,425.00 27,000,000.00 IS, 192,703.41 77,105,840.00 Cleveland 47,048,824.46 18,214,276.58 3,604,565.00 23,214,276.58 3,604,565.00 409,882,088.49 219,774,302.98 Richmond 14,664,487.85 1,731,807.72 25,742,115.00 14,731,807.72 25,742,115. 00 265,754,640.15 292,924,827.00 Atlanta 6,449,879.50 531,115.00 31,842,650.00 17,731,115.00 32,442,650.00 5,500,000.00 98,967,328.00 Chicago 58,414,175."" 8,337,000.00 10,000.000,00 8,337,000.00 32,200,000.00 131,657,437.00 St. Louis 9,388,893.01 5,004,010.00 10,500,000.00 11,104,010.00 11,400,000.00 6,000,000.00 93,062,181.00 Minneapolis 8,292,274,68 350,000. 00 5,929,500.00 1,100,000.00 7,329,500.00 68,607,799.22 110,285,721.00 Kansas City... 26,679,066.80 1,833,462.50 7,915,037.50 8,833,462.50 7,915,037.50 84,848,607.54 88,141,783.71 Dallas 7,619,011.86 6,335,947.50 17,585,980.00 6,835,947.50 17,585,980.00 109,963,393.76 160,334,398.00 San Francisco. 40,019,867.57 48,605,899.45 68,334,650.00 116,105,899.45 100,151,150.00 31,245,000.00 35,960,858.00 Total 405,541,341.02 99,250,637.05 231,318,397.50 316,300,637.05 277,534,897.50 1,688,008,156.56 1,688,008,156.56 Summary of changes in ownership of gold by banks Settlements from May 21, 1920, to Aug. 19, 1920, both inclusive. Balance in through transfers and settle- Federal Reserve Bank of— fu o n f d b u a s t i n cl e o s s s e ments. Aug. 19, 1920. Net debits. Total debits. Total credits. Net credits. Decrease. Increase. Boston $1,685,725,095.28 846,126,228.75 $160,401,133.47 594.62 $24,387,276.91 New York 5,636,310,039.34 680,551,443.03 44,241,403.69 353.45 $97,765,183.87 Philadelphia $20,506,373.88 2,056,513,728.27 036,007,354.39 549.59 ""46,'406,'762*71 Cleveland =, 1,782,203,929.53 010,845,561.48 228,641,631.95 959.32 38,533,846.44 Richmond 34,046,873.93 1,787,585,239.79 753,538,365.86 108.05 6,876,687.08 Atlanta 110,027.793.93 735,347,669.00 625,319,875.07 948.57 16,560,465.93 Chicago 74,976,286.56 2,863,657,744.81 788,681,458.25 325.52 24,481,150.44 St. Louis 88,6223369.91 1,510,575,613.30 421,953,243.39 694.10 "i*566,"i88.9i* Minneapolis 50,208.624.52 481,722,390.05 431,513,765.53 071.94 8,530,702.74 Kansas City 3,375;788.04 1,127,198,947.88 123,823,159.84 029.93 82,611.87 Dallas 63,630;262.26 682,878,819.51 619,248,557.25 786.34 13,259,258.02 San Francisco 686,273,279.55 "",383,483.47 12,110,203.92 180.04 16,826,061.92 Total. 445,394,373.03 21,035,992,496.31 21,035,992,496.31 445,394,373.03 306,775,601.47 144,635,098.42 144,635,098.42 FEDERAL RESERVE AGENTS' FUND. Federai Reserve Agent at— M B s a t a a y la t e n 20 m c , e e 1 n l 9 a t 2 s , 0 t . G d o r l a d w w al i s t . h- de G po o s ld its. W fo t r i o t h tr 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 o b u f s e a g i r n h t s s k. T d o r t a a w l w al i s t . h- de T p o o t s a i l ts. A B u b a g c u l . l a s o 1 n i s n 9 e c e , e 1 o s 9 s f a 2 t 0. Boston $92,000,000 $35,000,000 $25,000,000 $10,000,000 $40,000,000 $45,000,000 $65,000,000 $112,000,000 New York 80,000,000 17,000,000 17,000,000 63,000,000 Philadelphia.. 72,889,260 30,000,000 "" *i,566,6o6* 56,666,666 31,500,000 * 56,666*666' 91,389,260 Cleveland 95,000,000 5,000,000 5,000,000 100,000,000 Richmond 37,500.000 23,000,000 15,000,000 13,000,000 23,000,000 28,000,000 42,500,000 Atlanta 47,000,000 20,100,000 600,000 17,200,000 20,700,000 17,200,000 43,500,000 Chicago 143,144,500 49,000,000 58,000,000 10,000,000 49,000,000 68,000,000 162,144,500 St. Louis 39,230,600 28,000,000 21,100,000 900,000 6,100,000 28,900,000 27,200,000 37,530,600 Minneapolis.. 18,600,000 2,000,000 1,400,000 750,000 3,400,000 750,000 15,950,000 Kansas City.. 32,860,000 14,000,000 9,500,000 7,000,000 14,000,000 16,500,000 35,360,000 Dallas 11,234,000 8,000,000 7,000,000 500,000 8,000,000 7,500,000 10,734,000 San Francisco 57, 393,000 15,000,000 31, 816,500 67,500,000 46,816,500 67,500,000 78,076,500 Total... 726,851,360 241,100,000 135,600,000 46,216,500 217,050,000 287,316,500 352,650,000 792,184,860 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

978 FEDERAL RESERVE BULLETIN. SEPTEMBER, 1920. BANK TRANSACTIONS DURING JULY-AUGUST. In the attached tables are shown debits to Tin millions of dollars.] individual account for the five weeks ending August 25 of the present year and for the In New York City. In 153 other centers. corresponding weeks of 1919, as reported to the Federal Reserve Banks by the country's Week ending. Excess Excess more important clearing houses. A summary 1920 1919 o 1 v 92 e 0 r 1920 1919 o 1 v 92 e 0 r 1919. 1919. by Federal Reserve districts presents a comparison of figures for 154 centers for which July 21, 1920. reports are available both for the 1920 andJuly 23, 1919. }4,383 5,433 -1,050 4,890 4,274 616 July 28, 1920. the 1919 periods under review. July 30, 1919. 4,675 - 777 4,354 3,867 487 Aug. 4, 1920. Aggregate debits to individual account for Aug. 6, 1919. :,331 5,256 - 925 4,508 4,260 248 the 154 centers included in the summary A Au u g g . . 1 1 1 3 , , 1 1 9 9 2 1 0 9 }4,064 5,088 -1,024 4,279 4,148 131 varied during the five weeks under review A A u u g g . . 2 1 0 8 , , 1 1 9 9 1 2 9 0 \d,968 4,494 - 526 4,580 4,156 424 w 8,8 it 3 h 9 in m ra il t l h io e n r s n , a b rr e o in w g li s m ho it w s, n t h f e o r la t r h ge e s w t e a e m k o e u n n d t, - A A u u g g . . 2 27 5 , , 1 1 9 9 2 1 0 9 J3,722 4,253 - 531 4,264 3,732 532 ing August 4, and the smallest amount, 7,986 millions, for the week ending August 25. For the 153 centers outside of New York The volume of transactions throughout the City aggregate debits were larger this year period under review was considerably below than last year for each of the weeks under the average for the 34 weeks of the year, review, the excess varying between 131 and which is 9,222 millions, and the total reported 532 millions. For New York City, on the for the week ending August 25 was the smallest other hand, this year's figures were lower than amount for any week in 1920, excepting only 1919 figures, and the losses in most cases were the week of February 25, which contained considerably larger than the gains for the Washington's birthday, a legal holiday, and, other cities, with the consequence that aggretherefore, had only five business days. gate debits were lower this year than last year In 1919 the variations for the corresponding for every week except August 25, when the five-week period were somewhat wider, but two amounts were about equal. The heavy the general direction of the changes from week decline in volume of check transactions in to week was the same as for this year, the New York City, as has been frequently pointed lowest amount reported for the week ending out, is due primarily to the relative inactive August 27 being approximately the same as state of the stock exchange and the low level of the total for the corresponding week of 1920.security prices. Another contributing cause The statement below presents a comparison may be found in the establishment of the of debits in New York City and in 153 other Stock Clearing Corporation, which enables centers for each week of the five-week period, firms belonging to the corporation to settle together with totals for corresponding weeks by check only for the net debit balances of in 1919, and the amounts by which the totals in stock transactions during a day, instead of 1920 exceeded or fell short of the 1919 figures: drawing checks for each individual purchase. Debits to individual account at clearing-house banks. SUMMARY BY FEDERAL RESERVE DISTRICTS. [In thousands of dollars.] 1920 1919 Number Week ending- Week endingof Federal Reserve district. centers included. July 28. Aug. 4. Aug. 11. Aug. 18. Aug. 25. July 30. Aug. 6. Aug. 13. Aug. 20. Aug. 27. Boston 402,382 451,085 376,146 435,779 390,617 414,501 454,583 418,704 402,016 354,415 New York 4,047,015 4,485,785 4,204,494 4,120,502 3,863,549 4,787,614 5,387,088 5,216,201 4,622,041 4,371,108 Philadelphia... 403,926 411,226 403,556 405,315 436,204 356,056 401,545 381,267 381,029 345,686 Cleveland 598,920 590,539 550,672 564,354 548,234 502,917 521,218 529,220 486,382 464, 749 Richmond 169,559 191,377 173,791 178,918 159,202 161,325 189,049 175,116 170,481 154,722 Atlanta 223,508 232,576 220,341 223,089 219,439 185,104 208,488 201,818 190,968 184,509 Chicago 1,114,936 1,134,352 1,089,939 1,188,296 1,048, 754 952,201 1,035,417 1,031,256 1,071,677 936,414 St. Louis 198,340 203,375 213,189 224,920 202,086 211, 700 231, 776 219,482 228,341 185,565 Minneapolis 146,493 153,283 139,586 162,657 146,687 135,298 150,872 144,929 160,038 142,831 Kansas City 295,322 303,177 313, 765 313,221 295,975 302,453 330,652 311,123 315, 788 283,399 Dallas 128,888 145,783 140,203 160,425 141,036 121,821 130,530 133,691 133,770 121,213 San Francisco.. 522,973 536,335 517,263 570,807 534,488 411,271 474,348 473,377 487,555 440,634 Total 154 8,252,262 8,838,893 8,342,945 8,548,283 7,986,271 8,542,261 >, 515,5669,236,184 8,650,086 7,985, 245 NOTE.—Figures for the following centers, while shown below in the body of the statement, are not included in the summary, complete data for these centers not being available for each week under review: Manchester, N. H.; Portland, Me.; Atchison, Kans.; Cheyenne, Wyo.; Sioux Falls, S. Dak.; Huntington, W. Va.; Moline, 111.; Washington, D. C. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

SEPTEMBER, 1920. FEDERAL RESERVE BULLETIN. 979 Debits to individual account at clearing-house banks—Continued. DATA FOR EACH REPORTING CLEARING-HOUSE CENTER. [In thousands of dollars.] 1920 1919 Week ending— Week ending- Federal Reserve District. July 28. Aug. 4. Aug. 11. Aug. 18. Aug. 25 July 30. Aug. 6. Aug. 13. Aug. 20. Aug. 27, No. 1—Boston: Bangpr 3,362 4,076 3,115 4,107 3,201 2,618 2,710 2,798 2,835 2,360 Boston 255,729 286,430 241,886 283,931 254,446 293,466 317,584 284,219 271,720 243,682 Fall River 7,018 10,075 8,389 9,091 7,258 7,419 8,693 8,021 7,721 6,601 Hartfcrd 20,960 29,511 22,095 21,106 18,801 19,956 23,921 21,349 16,344 18,014 HolycT e 4,448 5,105 3,959 3,756 4,095 3,597 3,190 3,383 3,287 3,248 LoweJ 5,581 5,739 5,991 5,839 5,822 4,852 4,969 5,099 5,022 4,400 Mane ejtor 4,677 5,727 5,760 4,752 4,045 New Be iford 8,066 10,130 7,564 9,280 7,228 5,922 6,333 7,321 7,834 5,801 New Ha en 19,813 19,579 19,501 19,038 16,675 14,119 16,221 17,617 16,982 14,167 Portland 8,027 9,598 8,968 8,299 7,955 Provide ice 36,732 36,767 25,010 37,33,2 32,622 30,313 34,221 31,404 32,045 25,395 Springfield 16,039 17,526 14,927 16,010 15,836 13,720 14,924 13,291 14,955 12,219 WaterLir y - 6,501 7,014 6,647 7,776 6,220 5,833 6,138 7,726 6,900 5,707 Worceste1 18,133 19,133 17,062 18,513 18,413 12,686 15,679 16,476 16,371 12,821 No. 2—New York: Albany 27,464 21,187 20,129 22,069 20,827 16,407 17,841 19,887 11,954 18,984 Binghamton 4,333 4,560 4,381 3,438 3,789 3,337 3,672 3,391 3,349 3,125 Buffalo 63,806 71,883 66,549 68,021 63,772 52,851 65,078 61,331 65,106 56,433 New York ,898,013 ,331,074 ,063,612 ,968,469 ,722,078 :, 675,401 .,256,018 i, 088,079,493,547 4,253,411 Passaic 5,171 5,292 5,178 5,964 5,142 3,573 3,933 4,083 3,929 3,628 Rochester 30,715 33,415 27,523 32,234 31,794 23,483 26,857 26,660 28,847 22,820 Syracuse 17,513 18,374 17,122 20,307 16,147 12,562 13,689 12,770 15,309 12,707 No. 3—Philadelphia: Altoona 3,166 2,461 3,029 2,631 2,471 3,010 2,994 3,367 3,667 3,505 Chester 5,166 5,340 4,963 5,950 5,182 3,857 4,361 4,526 4,779 3,863 Harrisburg 4,453 1,233 2,897 2,067 1,229 4,000 3,972 3,969 3,800 3,930 Johnstown 4,743 4,780 4,965 4,650 4,050 3,559 , 3,595 3,343 3,512 2,794 Lancaster 5,296 5,971 5,484 5,522 4,200 4,255 4,531 4,636 4,629 4,171 Philadelphia 328,868 335,488 323,706 330,977 364,101 291,987 334,588 312,192 312,379 281,766 Reading 3,287 3,391 4,328 3,481 3,352 3,132 3,120 4,136 4,145 3,683 Scranton 15,636 13,343 16,784 12,238 16,074 12,112 11,318 12,341 10,390 13,193 Trenton 12,052 12,890 11,960 11,936 11,942 8,458 8,855 9,446 9,732 9,029 Wilkes-Barre 5,748 10,282 9,200 8,879 8,275 7,179 7,438 7,372 7,504 6,040 Williams "o*.t 4,304 3,960 4,459 4,675 3,807 3,073 3,141 2,880 3,422 3,238 Wilmington 7,088 7,602 7,455 8,060 6,892 8,496 9,857 10,005 9,511 7,621 York 4,119 4,485 4,326 4,249 4,629 2,938 3,775 3,054 3,559 2,853 No. 4—Cleveland: Akron 25,802 23,160 21,083 27,988 22,192 22,489 23,009 19,812 23,847 19,933 Cincinnati 61,812 64,065 60,952 61,543 58,152 54,373 51,113 55,025 55,788 48,653 Cleveland 176,734 175,468 163,831 180,501 160,470 156,435 144,328 155,039 154,314 132,911 Columbus 28,310 29,636 31,927 29,486 27,583 27,360 30,260 28,816 27,519 26,887 Dayton 11,768 11,198 11,964 11,734 10,958 12,376 12,429 13,398 12,125 11,265 Erie 7,670 8,177 8,048 8,517 7,814 5,470 7,785 6,609 6,422 6,039 Greensburg 6,791 6,710 4,569 6,538 7,191 4,754 2,908 7,776 4,008 3,360 Lexington 4,422 4,865 4,400 5,803 4,336 4,218 5,272 5 384 4,402 4,405 Oil City 3,216 3,177 3,527 3,589 3,156 2,632 2,595 3,238 2,665 2,650 Pittsburgh 213,353 206,072 181,489 170,715 192,498 156,691 189,769 172,564 142,074 155,309 Springfield 3,750 3,506 3,262 3,446 3,246 3,372 3,214 2,998 3,585 3,543 Toledo 31,652 29,700 30,810 31,249 29,900 28,047 28,400 32,371 29,053 25,963 Wheeling 9,300 10,428 8,788 9,440 7,517 8,869 7,315 6,944 6,618 8,797 Youngstown 14,340 14,377 16,022 13,805 13,221 15,831 12,821 19,246 13,962 15,034 No. 5—Richmond: Baltimore 99,489 119,433 104,674 109,118 94,988 101,848 117,784 108,829 110,080 94,439 Charleston 7,638 8,975 7,895 6,113 5,170 7,029 5,750 7,457 5,929 6,062 Charlotte 6,344 7,275 6,882 7,412 6,405 5,500 6,400 3,800 5,900 4,200 Columbia 5,087 ' 5,258 4,915 4,972 4,228 5,470 5,567 5,402 5,572 6,064 Huntinjrton 5,310 6,014 5,662 6,199 6,091 Norfolk. , 21,574 22,606 22,557 20,372 19,821 16,567 20,655 18,477 17,169 17,427 Raleigh 4,100 3,441 4,100 4,898 3,379 3,697 3,490 3,900 3,260 3,050 Richmond , 25,327 24,389 22,768 26,033 25,211 21,214 29,403 27,251 22,571 23,480 Washington 32,983 33,090 30,751 No. 6—Atlanta: Atlanta 25,702 28,898 27,947 30,283 25,965 22,130 28,548 23,212 24,318 23,419 Augusta 7,050 7,829 7,022 7,498 6,987 7,989 7,152 5,899 6,450 5,766 Birmingham 16,028 16,184 16,604 15,258 16,191 11,429 12,825 12,880 12,414 13,832 Chattanooga 10,560 10,722 11,938 12,510 10,221 11,067 10,861 11,566 11,278 9,270 Jacksonville 12,812 14,460 14,549 12,935 12,416 10,554 10,957 10,352 10,425 10,124 Knoxville 5,754 6,743 6,991 7,015 6,325 4,676 5,711 5,672 6,220 5,749 Macon 5,594 6,765 5,711 6,651 5,299 5,329 4,889 6,231 5,541 5,917 Mobile ". 7,206 8,633 8>410 8,137 7,429 6,893 7,045 7,198 6,992 6,721 Montgomery 4,334 4,537 4,242 4,083 3,836 3,657 4,493 3,716 3,749 3,196 Nashville 32,308 22,668 23,057 24,787 22,656 18,169 21,494 20,968 19,980 18,274 New Orleans 72,434 79,386 70,105 73,414 80,461 61,898 71,448 72,333 62,526 61,166 Pensacola 2,224 2,703 2,572 2,611 2,051 1,952 2,124 2,180 2,500 2,073 Savannah 14,023 14,989 13,535 11,202 12,746 13,871 15,648 13,896 13,348 14,255 Tampa 5,879 6,305 5,958 5,275 5,486 4,071 3,875 4,248 3,860 3,664 Vicksburg 1,600 1,754 1,700 1,430 1,370 1,419 1,418 1,467 1,367 1,083 No. 7—Chir ago: Bay City 3,086 3,590 3,258 3*397 3,253 2,505 2,941 2,809 2,880 2,654 Bloomington 2,374 2,956 2,672 2*754 2,379 2,504 2,822 2,566 2,588 2,555 Cedar Rapids 10,953 10,190 11,232 10,762 10,602 7,749 9,132 8,729 10,638 8,462 Chicago 712,635 725,094 684,020 740,387 639,908 645,441 695,655 685,735 684,519 611,419 Davenport 7,289 8,501 8,898 6,906 6,785 5,208 7,638 6,468 6,057 6,732 Decatur 4,087 4,496 4,521 4,631 3,949 3,756 4,361 3,614 3,732 3,663 Des Moines 18,043 18,356 19,832 18,400 18,872 17,594 17,947 19,224 19.471 19,662 Detroit 148,982 152,459 145,618 183,873 164,542 95,759 107,832 121,083 161,446 120,139 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

980 FEDEKAL RESERVE BULLETIN. SEPTEMBER, 1920. Debits to individual account at clearing-house banks—Continued. DATA FOR EACH REPORTING CLEARING-HOUSE CENTER—Continued. [In thousands of dollars.] 1920 1919 Week ending- Week ending- Federal Reserve District. July 28. Aug. 4. Aug. 11. i Aug. 18. Aug. 25 July 30. Aug. 6. Aug. 13. Aug. 20. Aug. 27. No. 7—Chicago—Continued. Dubuque 3,506 3,199 3,736 3,450 3,202 1,950 2,453 2,239 2,510 2,089 Flint 8,427 12,380 10,503 I 9,654 9,403 7,286 8,582 8,035 7,847 8,827 Fort Wayne 8,865 9,490 7,411 j 8,390 7,248 5,276 5,971 5,656 5,932 4,909 Grand Rapids 23,495 22,283 22,976 | 22,914 21,878 18,288 21,613 23,306 21,294 18,916 Indianapolis , 41,506 38,572 40,791 i 41,082 37,191 32,400 33,126 32,636 33,930 26,852 Jackson , 5,843 5,352 5,352 ! 4,740 4,616 3,746 5,621 3,951 5,337 4,142 Kalamazoo 5,016 5,558 5,255 j 6,552 5,273 3,385 3,668 3,906 4,099 2,636 Lansing , 5,983 6,253 5,871 I 7,132 6,479 4,695 5,591 5,799 4,958 5,559 Milwaukee , 61,404 62,846 61,756 I 66,841 60,393 49,616 58,464 55,840 56,013 49,513 Moline 2,329 2,588 2,402 2,505 2,596 Peoria 10,870 11,026 11,065 11,058 9,388 10,249 10,925 10,411 9,513 Rockford 5,621 4,899 6,269 6,053 5,719 4,257 4,763 4,700 4,581 4,638 Sioux City 14,880 13,770 14,278 ! 14,515 13,400 21,763 15,311 10,961 12,294 13,965 South Bend 5,131 5,402 5,866 5,776 5,712 2,197 3,618 4,268 3,421 3,585 Springfield 3,207 4,104 5,034 4,635 4,255 3,594 4,020 6,162 5,791 4,346 Waterloo 3,733 3,576 3,725 4,394 4,307 2,983 3,363 3,158 2,826 2,583 No. 8—St. Louis: E vansville 4,933 4,793 4,972 5,470 4,274 5,258 5,365 5,080 3,889 4,383 Little Rock 6,326 8,076 7,479 7,454 6,716 7,257 9,091 7,786 6,580 6,182 Louisville 25,300 29,940 33,485 28,763 28,702 28,923 32,642 32,497 35,702 29,464 Memphis 24,001 25,739 24,287 27,265 28,110 24,086 28,402 23,900 25,463 21,484 St. Louis 137,780 134,827 142,966 155,968 134,284 146,176 156,276 150,219 156,707 124,052 No. 9—Minneapolis: Aberdeen , 1,533 1,651 1,801 1,713 1,752 1,476 1,806 1,897 1,875 2,023 Billings , 1,780 1,887 2,005 1,963 1,725 1,837 2,212 1,017 2,026 1,564 Duluth , 20,449 22,596 19,499 20,080 19,622 19,566 19,046 18,221 17,922 17,690 Fargo 3,235 2,875 3,506 3,266 3,307 3,018 3,869 3,600 7,809 7,637 Grand Forks 1,568 1,574 1,557 1,482 1,600 1,526 1,578 1,562 1,644 1,560 Great Falls 1,638 1,723 2,107 1,963 1,986 1,582 2,165 1,914 1,793 1,982 Helena 2,049 2,446 2,485 2,246 2,174 2,001 2,674 2,711 2,579 3,219 Minneapolis 74,148 83,553 74,295 89,918 79,164 67,902 75,766 76,309 83,730 73,999 St.Paul 36,891 31,942 28,931 36,784 32,557 34,292 39,263 34,965 37,962 30,580 Sioux Falls 5,870 5,216 5,193 5,675 5,421 Superior 1,947 1,950 2,227 2,067 1,811 1,124 1,445 1,993 1,819 1,6 Winona 1,255 1,086 1,173 1,175 974 1,048 740 879 880 No. 10—Kansas City: Atchison 458 577 716 541 436 Bartlesville 3,748 4,048 3,330 3,411 2,831 2,385 3,200 2,569 2,240 2,446 Cheyenne 1,919 1,984 1,929 1,795 2,282 Colorado Springs 3,000 3,227 3,615 3,783 3,389 3,285 4,100 4,147 4,725 2,793 Denver 42,956 42,288 41,408 39,464 38,383 29,836 33,448 29,501 31,702 30,432 Joplin 2,713 2,934 3,651 3,611 2,969 2,739 3,253 3,255 2,917 2,710 Kansas City, Kans 3,972 4,182 4,318 4,307 4,282 3,406 3,441 3,922 3,789 2,638 Kansas City, Mo 88,157 87,409 97,904 94,497 88,631 112,684 125,052 118,337 114,907 98,010 Muskogee 4,505 4,850 5,095 4,945 4,795 3,750 3,933 4,084 3,286 3,463 Oklahoma City 20,789 23,863 27,663 30,591 26,785 16,374 18,922 17,174 16,156 16,330 Omaha 55,861 56,857 54,196 57,073 56,914 63,864 67,024 65,433 71,725 66,425 Pueblo 3,641 3,651 4,942 5,071 3,832 4,489 3,685 3,766 5,112 3,227 St. Joseph 14,353 17,008 20,225 14,384 18,830 18,851 20,114 17,437 19,554 16,149 Topeka 3,755 5,275 4,982 4,429 3,993 4,858 6,498 5,607 5,428 4,790 Tulsa 30,022 29,314 26,821 31,467 24,816 21,787 21,242 21,397 21,724 20,579 Witchita 17,850 18,271 15,615 16,188 15,525 14,145 16,740 14,494 12,523 13,407 No. 11—Dallas: Albuquerque 1,052 1,808 1,570 1,901 1,452 1,415 1,620 1,682 1,756 1,361 Austin 2,493 2,894 2,822 3,026 2,882 l,.93O 2,877 3,286 3,220 2,814 Beaumont 4,614 4,721 4,820 5,277 4,292 3,236 3,375 3,092 3,448 3,924 Dallas 30,902 36,222 34,654 36,089 33,636 31,338 30,800 35,323 33,177 28,551 El Paso 8,773 8,799 7,266 7,402 7,735 6,090 7,093 7,040 7,150 6,319 Fort Worth 26,181 26,897 26,483 27,015 26,185 22,211 21,898 21,899 22,018 19,394 Galveston 8,810 8,147 7,613 15,174 10,360 8,763 12,586 9,370 11,137 9,317 Houston 30,943 35,373 35,690 41,741 33,126 32,007 33,873 34,188 36,140 32,256 San Antonio 5,810 7,466 7,501 7,135 8,222 3,305 3,514 4,299 3,858 6,798 Shreveport 3,547 6,581 4,783 9,110 7,077 6,077 6,345 7,001 5,928 5,475 Texarkana 1,291 1,567 1,786 1,839 1,222 1,485 1,647 2,193 1,710 1,522 Tucson 1,498 1,629 1,650 1,391 1,400 1,159 1,322 1,306 1,083 680 Waco 2,974 3,679 3,565 3,325 3,447 2,805 3,580 3,012 3,145 2,802 No. 12—San Francisco: Berkeley 2,496 2,601 2,808 3,212 1,633 2,154 2,413 2,764 2,876 Boise 2,961 3,049 3,257 3,251 3,537 3,072 2,650 3,208 2,728 2,426 Fresno 9,789 9,921 11,864 11,474 10,751 5,826 6.800 7,521 7,526 6,123 Longg Beach 4,832 5,383 5j,358 5,365 4,805 3,052 4,124 3,506 3,505 2,662 LLooss AAnggeelleess 94,288 95,568 91,059 102,331 96,535 68,377 76,496 75,935 77,372 64,017 Oakland 33,108 30,518 20,052 20,677 19,851 12,414 14,362 12,485 14,894 12,867 Ogden 2,757 3,169 3,334 3,788 3,872 3,106 3,039 3,041 3,681 3,212 Pasadena 4,344 4,960 5,174 5,957 4,938 3,375 4,859 3,782 3,633 2,650 Portland 37,070 41,155 43,966 45,865 40,344 32,860 39,349 45,345 48,730 38,117 Reno 2,658 2,843 2,666 2,830 2,559 1,901 2,457 2,246 2,290 2,100 Sacramento 14,513 15,540 16,046 17,425 15,769 10,587 13,033 13,268 13,500 12,526 Salt Lake City 16,170 17,392 15,196 16,988 15,810 13,077 14,980 16,111 15,985 15,081 San Diego 7,569 7,465 7,804 8,833 6,505 4,326 5,233 5,318 5,321 4,245 San Francisco 215,119 219,539 206,729 235,725 226,598 171,149 200,028 187,638 193,207 189,865 San Jose 5,396 6,017 6,056 6,665 6,040 3,982 5,115 5,744 5,839 5,087 Seattle 42,823 41,078 44,044 46,883 41,933 46,519 51,682 57,012 54,694 48,031 Spokane 9,094 10,779 11,679 13,350 11,626 8,548 10,933 10,965 10,986 9,717 Stockton 5,559 6,416 5,937 5,932 5,629 5,750 5,705 3,994 5,222 3,562 Tacoma 10,195 10,405 11,607 11,797 11,719 9,941 9,314 11,041 12,874 12,946 Yakima 2,232 2,537 2,627 2,459 2,578 1,776 2,035 2,804 2,804 2,524 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

SEPTEMBER, 1920. FEDERAL RESERVE BULLETIN. 981 DISCOUNT AND OPEN-MARKET OPERATIONS OF THE FEDERAL RESERVE BANKS DURING JULY, 1920. Detailed tables showing the discount and those of Atlanta, St. Louis, Kansas City,' and open-market operations of each Federal Re- San Francisco. serve Bank during July, 1920, are shown on Of the total bills discounted by the Federal pages 983 and 984. Following is a summary Reserve Banks the proportion secured by for the system, as a whole, of the operations in Government war obligations was 67 per cent, July and June of the current year with com- compared with 72 per cent the month before parative figures for 1919: and 95 per cent for July and June, 1919. Discounts of trade acceptances were about 0.5 Summary of discount and open-market operations of Federalmillion less in July than in June of this year, Reserve Banks in July and June, 1920 and 1919. but were about 5 millions above the amount [In thousands of dollars.] shown for July of last year. Discounted bankers' acceptances also show a decline, the 1920 1919 total in July being about 7 millions, as against 9.4 the month before, but only 0.4 million in July. June. July. June. July, 1919. Discounts of commercial paper proper and of agricultural and live-stock paper Total discounts and open- totaled about 394 millions more in July than in market purchases 7,518,907 7,797,839 7,692,825 6,771,913 Discounts—Total 6,714,924 6,336,642 7,183,435 6,328,911 June, the amount for July being about 1,812 Secured by Government millions above the corresponding amount for war obligations 4,532,466 4,545,248 6,824,988 6,036,277 Otherwise secured and July, 1919. unsecured—Total 2,182, 458 1,791,394 358,447 292,634 Trade acceptances 13,453 13,920 8,505 7,949 "fhe number of items discounted in July of Bankers' acceptances.. 7,069 9,432 360 496 this year was 95,397, as compared with 98,296 All other (commercial n. e. s., agricultural in June and 46,909 in July, 1919. It is to be andlive-stock paper) 2,161,936 1,768,042 349,582 284,189 Average maturity (in days) 13.63 14.48 9.41 9.79 noted that the average amount of the items Average rate (365-day discounted in July of this year was $70,389, as basis) percent.. 6.21 6.20 4.14 4.19 Open-market operations: compared with $153,136 for July, 1919, when Bills purchased—Total.. 219,464 285,753 276,485 291,915 a larger proportion of the discounts consisted Bankers' acceptances- Total 207,272 256,184 273,975 290,203 of member banks' collateral notes. In the domestic trade 48,773 62,811 60,380 62,219 In the foreign trade.. 158,499 193,373 213,595 227,984 Nearly 90 per cent of the discounts in July Trad T e o ta a l cceptances- 10 168 24 419 1,669 1 645 consisted of 15-day paper, i. e., paper maturing In the domestic trade ;214 1*547 '729 661 within 15 days after date of discount or redis- In the foreign trade.. 9,954 22,872 940 984 Dollar exchange 2,024 5,150 841 67 count with Federal Reserve Banks. This per- Average maturity (in days) 47.82 45.68 51.21 45.60 Average rate (365-day centage is higher than for June, when it was 88 basis) per cent 6.06 6.07 4.25 4.24 per cent, but lower than for July, 1919, when United States securities purchased: it was 97 per cent. Six-month bills, composed Victory notes 60 278 Certificates of indebted- of agricultural and live-stock paper, totaled ness 584,519 1,175,444 232,845 150,809 about 40 millions in July, as compared with 52 millions the month before and about 9 millions During the month of July the total of dis-in July, 1919. The average maturity of the count operations of the Federal Reserve Banks bills discounted in July figures out at 13.63 was about 378 millions in excess of the total for days, as compared with 14.48 days in June, and June of this year but about 469 millions below 9.41 days in July of last year. the amount for July of last year. The figures A slight increase in the average rate of disin the table, it should be noted, are exclusive of count, from 6.20 per cent in June to 6.21 per bills discounted for other Federal Reserve cent in July is noted, the average rates for the Banks, which totaled 321 millions during July corresponding months in 1919 being 4.19 and and 273 millions during June of this year, and 4.14 per cent. The average rates of discount 296 millions during July and 355 millions dur- were higher in July than in June, however, at ing June of the past year. the eastern banks and at the Richmond, While the discounts for the system as a whole Chicago, and San Francisco banks. were smaller in July than in June, the total for Total bills purchased in open market in July the New York bank increased by more than were about 66 millions less than for the month 600 millions, and that for the Boston bank of June. Smaller amounts are shown for all declined by about 130 millions. Other banks classes of acceptances in July than in June, the having larger totals for July than for June are decrease in bankers' acceptances being about Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

982 FEDERAL RESERVE BULLLETIN. SEPTEMBER, 1920. 49 millions and in trade acceptances about 14 Summary of discounted and purchased paper held by the millions. As compared with July of last year Federal Reserve Banks at the end of July and June, 1920 the total of bankers7 acceptances purchased and 1919.1 [In thousands of dollars.] shows a decline of about 67 millions, while the total of trade acceptances increased from 1.7 to 1920, end of— 1919, end of— 10.2 millions, the increase in foreign trade acceptances being from 0.9 to about 10 millions. July. June. July. June. The average maturity of all paper purchased by the Federal Reserve Banks during July was Discounted paper—Total. 2,491,630 2,431,794 1,867,602 1,818,040 47.82 days, compared with 45.68 days the Secured by G overnment war obligations. 1,241,017 1,277,980 1,616,210 1,573,483 month before and 51.21 days the year before. Otherwise secured and The average rate charged on acceptances pur- unsecured—Total. 1,250,613 1,153,814 251,392 244,557 Agricultural paper.. 106,611 83,193 28,639 30,836 chased in July was 6.06 per cent, showing but Live-stock paper 95,909 84,845 34,965 37,420 little change from the average of 6.07 per cent B Tr a a n d k e e r a s c 'a c c e c p e t p an ta c n e c s e .. s . . 1 9 9 , , 8 49 3 8 0 2 2 0 5 , , 0 1 3 7 4 4 9,6 4 0 7 0 3 7 1 , , 8 1 0 1 3 3 for June, while for July and for June, 1919, the Commercial paper, n. e. s 1,018,765 940,568 177,715 167,385 corresponding average rates were 4.25 and 4.24 Purchased paper—Total.. 346,408 384,551 373,240 315,993 Bankers' acceptances— per cent. Total 339,646 372,541 371,991 314,407 During the month under review 63 banks M No e n m m b e e m r b b a e n r ks trust 234,368 255,564 269,568 233,519 were added to the membership of the system, companies 1,975 1,876 8,935 9,225 Nonmember State the total number of member banks increasing banks 45,137 54,598 31,928 29,361 from 9,395 to 9,458, while the number of banks Private banks 36,087 38,647 42,593 29,648 Foreign banks, accommodated through discount of paper de- branches, and agencies 22,079 21,856 18,967 12,654 creased from 4,948 in June to 4,858 in July. Trade acceptances— The number of members in each district at the Total 6,762 12,010 1,249 1,586 Foreign 5,124 10,071 673 1,204 end of July and of June and the number accom- Domestic 1,638 1,939 576 382 modated during each month is shown in the following statement: 1 For discounted paper the figures are for the last Friday of each month, for purchased paper for the last day of each month. Holdings of live-stock paper show an increase Number of Number of of 11 millions for the end of July and an increase member banks member banks in district. accommodated. of 61 millions as compared with the total held Federal Reserve Bank. a year ago, while bankers' and trade acceptance July 31. June 30. July. June. holdings were smaller at the end of July of this year than at the end of June, but Boston 432 432 231 246 much larger than at the end of July, 1919, N Ph ew ila d Y e o lp r h k i . a . . .. 7 6 7 9 5 0 7 6 7 8 2 8 347 3 3 7 6 8 5 the increase for bankers7 acceptances being C R l i e c v h e m la o n n d d 8 60 6 5 2 8 6 6 0 1 1 390 3 2 7 9 7 6 from 0.5 to 9.8 millions and for trade accept- Atlanta 443 438 288 267 ances from 9.6 to 19.5 millions. Holdings of Chicago 1,397 1,394 751 739 St. Louis 567 562 287 297 commercial paper not otherwise specified show M Ka in n n sa e s a p C o i l t i y s. . . . . . 1,0 9 7 7 0 9 1, 9 06 7 2 2 5 5 0 0 8 2 4 4 9 9 5 4 a further increase from 941 millions in June to Dallas 828 812 519 610 1,019 millions in July, the corresponding figures San Francisco. 810 801 384 in 1919 being 167 and 178 millions, respectively. Total.... 9,458 9,395 4,858 4,948 While commercial paper constituted only 13.4 per cent of all discounts held at the end of July, Federal Reserve Bank holdings of discounted 1919, this proportion rose to 47.4 per cent at &nd purchased bills, by classes of paper, at the the end of June and to 49.8 per cent at the end end of July and June, 1920 and 1919, are shown of July of this year. in detail on page 985 and are summarized in Holdings of purchased acceptances at the the opposite column. end of July were about 346 millions, marking a Among the principal changes between June further decrease of about 38 millions from the and July in holdings of discounted paper the end of June of this year and a decrease of 27 following are to be noted: A decrease of about millions since the end of July, 1919. Bankers7 37 millions in paper secured by Government acceptances show a decrease of about 3.2 milwar obligations, more than offset by an increase lions for the month and of about the same of about 97 millions in paper not so secured. amount for the year, while trade acceptance Holdings of agricultural paper were larger by holdings declined from 12 to 6.8 millions during 23 millions at the end of July than at the end of the month under review, but still show a large June, while the most recent total of 107 millions increase over the 1.2 millions reported at the was 78 millions in excess of the corresponding end of July, 1919. Of the bankers' acceptamount a year earlier. ances held at the end of July, 69 per cent Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

983 "SEPTEMBER,, 1920. FEDERAL RESERVE BULLETIN. were bills accepted by member banks, 13.9 per agencies. Of the trade acceptances held, about cent by nonmember State banks and trust com- 5 millions were based on transactions in the panies, 10.6 per cent by private banks, and domestic trade and 1.6 millions on transactions 6.5 per cent by foreign banks, branches, and in the foreign trade. Total discount and open-market operations of each Federal Reserve Bank during July, 1920. United States securities purchased. Total. Bills dis- Bills bought Federal Reserve Bank. counted for in open member banks. market. Vi B c o to n r d y s a n n ot d es. i C n e d r e ti b f t ic e a d t n e e s ss o . f July, 1920. July, 1919. Boston $286,483,793 $22,568,796 $62,763,000 $371,815,589 $435,552,808 New York 4,044,469,874 115,739,767 382,798,500 4,543,008,141 4,323,320,699 Philadelphia... 489,727,126 616,085 61,286,500 551,629,711 1,034,505,184 Cleveland 196,977,108 21,538,845 13,350,000 231,865,953 319,387,014 Richmond 251,416,440 3,083,515 8,000,000 262,499,955 426,996,327 Atlanta 180,186,879 1,430,084 4,000,000 185,616,963 182,993,039 Chicago 496.302,412 27,607,673 3,150,000 527,060,085 408,088,731 St. Louis 192,560,908 2,040,770 860,500 195,462,178 154,273,131 M Ka i n n s n a e s a p C o i l t i y s . . . . . . 1 7 47 2 , ; 8 2 5 9 2 1 , , 8 3 0 0 2 2 2 2 , , 7 0 7 6 4 3 , , 3 6 9 1 9 2 1 1 , , 0 8 1 2 6 1 , , 0 0 0 0 0 0 1 7 5 6 1 , , 0 7 8 3 1 7 , ,4 7 1 0 4 1 1 4 1 0 0 , , 0 5 9 0 8 3 , , 1 4 4 4 3 7 D Sa a n l la F s rancisco. 2 1 4 0 7 9 . ;5 1 3 2 4 1 , , 0 0 7 9 2 3 19,3 6 1 8 7 2 , , 6 50 3 0 1 4 5 0 , , 2 2 7 0 0 3 , , 5 5 0 0 0 0 3 1 0 1 6 5 , , 6 4 4 8 2 7 , , 2 0 2 7 4 2 1 1 5 0 6 0 , , 3 71 9 3 3 , , 5 0 9 3 9 1 Total, July, 1920 6,714,923,809 219,463,677 584,519,500 7,518,906,986 Total, July, 1919 7,183,435,073 276,484,830 $60,250 232,845,000 7,692,825,153 Total, 7 months ending July 31, 1920 45,146,332,039 1,933,167,062 228,100 5,242,888,500 52,322,615,761 Total, 7 months ending July 31, 1919 43.248,463,252 1,349,252,732 1,751,475 1,797,500,500 1*46," 396," 968," 959 1 Includes $1,000 of municipal warrants. Average daily amount of earning assets held by each Federal Reserve Bank during July, 1920, earnings from each class of earning assets, and annual rate of earnings on basis of July, 1920, returns. Average daily holdings of the several classes of earning assets. Discounted Purchased United States bills. bills. securities. Total. Boston $155,960,572 $34,003,828 $23,655,216 $213,619,616 JSTew York 836,176,110 150,513,037 83,048,752 1,069,737,899 Philadelphia 180,392,626 9,427, 763 35,915,751 225,736,140 Cleveland 169,112, 899 53,822,929 24,618,827 247,554,655 Richmond 101,631,500 5,740,213 13,944,913 121,316,626 Atlanta 115,109,041 3,874,899 15,910,525 134,894,465 Chicago 439,987,018 48,959,320 44,351,390 533,297,728 St. Louis 109,391,222 3,045,700 18,485,561 130,922,483 Minneapolis 77,561,000 3,400,000 8,636,000 89,597,000 Kansas City 108,955,758 2,665,255 21,773,548 133,394,561 Dallas 73,590,015 574,677 12,486,371 86,651,063 San Francisco 151,175,710 47,593,058 15,481,773 214,250,541 Total, July, 1920. 2,519,043,471 363,620,679 318,308,627 3,200,972,777 Total, July, 1919. 1,867,920,337 362,297,879 248,644,993 2,478,863,209 Earnings from— Average rates of earnings on— co b D u il n i l s t s - e . d c b h P i a u l s l r e s - . d U s S e t n t i c a e i u t t s e e r . i s d - Total. co b D u il n i l s t s - e . d c b h P i a u l s l r e s - . d U s S e t n t i c a e i u t t s r e e . i d s - Total. Per cent. Per cent. Per cent. Percent. Boston $819,228 $174,948 $42,744 $1,036,920 6.20 6.07 2.13 5.73 New York 4,349,737 784,147 165,906 5,299,790 6.14 6.15 2.36 5.85 Philadelphia , 850,800 47,992 68,425 967,217 5.56 6.01 2.24 5.05 Cleveland 838,851 274,467 42,982 1,156,300 5.84 6.00 2.06 5.50 Richmond 512,920 29,796 23,741 566,457 5.96 6.13 2.01 5.51 Atlanta 563,395 20,011 27,134 610,540 5.78 6.10 2.01 5.34 Chicago 2,397,453 249,412 78,739 2,725,604 6.43 6.01 2.10 6.03 St Louis 526,258 15,528 32,593 574,379 5.66 6.02 2.09 5.19 Minneapolis 441,895 16,686 14,749 473,330 6.73 5.79 2.02 6.23 Kansas City 598,037 13,583 39,170 650,790 6.48 6.02 2.12 5.76 Dallas 380,989 3,011 22,280 406,280 6.09 6.08 2.10 5.51 San Francisco 762,999 241,154 27,254 1,031,407 5.96 5 98 2.08 5.68 Total, July, 1920. 13,042,562 1,870,735 585,717 15,499,014 6.11 6.07 2.15 5.71 Total, July, 1919. 6,586,435 1,315,282 473,506 8,375,223 4.15 4.27 2.24 3.98 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

984 FEDERAL RESERVE BULLETIN. SEPTEMBER, 1920. Bills discounted during July, 1920, distributed by classes; also average rates and maturities of bills discounted by each Federal Reserve Bank. Member banks' collateral Customers' notes. All other Federal Reserve Bank. o s m b e G c l e p i u o g n a r v a t p e e t e d w i r r o n b a n - r y s. w G a S r o e o v c b u e l r r i e n g d m a t e b io n y n t s. O s t e h c e u r r w ed is . e a a T c n r c c a e e d p s e t . - B a a a c n n c c k e e p e s t r . - s' n c (c u . l i o l p e v t m . a e u - p s m r s . a e , t e l r o a r ) c a c g . k n i r a i d - l Total. m A in a v t d e u a r r a y i g s t e y . A (3 b v 6 a r e a 5 s r i t - e a s d ) g a . y e Per cent. Boston $16,308,260 $234,192,365 $150,000 $146,058 $35,687,110 $286,483,793 14.26 6.31 New York 57,498,277 2,617,967,910 51,219 12,112,710 2$3,534,343 1,363,305,415 4,044,469,874 6.76 6.25 Philadelphia 33,589,804 289,943,084 541,118 118,643 165,534,477 489,727,126 13.98 5.54 Cleveland 7,559,924 144,460,370 222,000 2,421,769 85,140 42,227,905 196,977,108 21.86 5.84 Richmond 2,451,661 209,963,445 1,762,000 869,799 36,369,535 251,416,440 16.76 5.96 Atlanta -5,765,296 116,564,285 714,500 642,349 114,999 56,385,450 180,186,879 28.91 5.94 Chicago 9,961,854 295,432,298 817,655 1,884,638 655,000 187,550,967 496,302,412 34.36 6.65 St. Louis 5,715,701 100,369,142 441,150 932,115 827,352 84,275,448 192,560,908 30.13 6.04 Minneapolis 1,818,057 32,645,450 2,060,942 336,582 35,430,271 72,291,302 42.24 6.77 Kansas City 3,724,615 104,552,630 566,000 1,022,745 30,862 37,955,950 147,852,802 31.01 6.62 Dallas 1,593,517 74,317,168 821,100 346,694 32,455,593 109,534,072 33.55 5.87 San Francisco 2,699,222 163,371,736 690,600 '2,195,932 1,702,443 76,461,160 247,121,093 21.57 5.95 Total, July, 1920.. 148,686,188 4,383*779,883 8,297,166 13,452,509 7,068,782 2,153,639,281 6,714,923,809 13.63 6.21 Total, July, 1919.. 214,957,975 6,610,038,564 20,893,025 8,504,928 360,677 328,679,904 7,183,435,073 9.41 4.14 1 Includes $233,300 in the foreign trade. 3 Includes $105,460 in the foreign trade. 2 Includes $15,000 of dollar exchange bills. Bankers' and trade acceptances in the foreign and domestic trade and dollar exchange bills purchased during July, 1920; also average rates and maturities of total bills purchased by each Federal Reserve Bank. Feder B a a l n R k e . serve Domestic B . anke F r o s' r e a i c g c n e . ptances. Total. Domesti T c rad F e o a r c e c ig e n p . tances T . otal. ex D b c o i h l l a l l s n a . g r e p T u o r t c a h l a b s i e l d ls . m A in a v t d e u a r r a y i g s ty e . A (3 b v 6 a r e a 5 s r i - te s a d ) g a . y e Per cent. Boston" $7,821,545 $14,747,251 $22,568,796 $22,568,796 33.78 6.09 New York 20,681,821 84,395,280 105,077,101 $190,060 $9,220,054 $9,410,114 $1,252,552 115,739,767 42.20 6.04 Philadelphia 75,352 515,733 591,085 25,000 616,085 43.96 5.88 Cleveland 5,769,287 15,594,558 21,363,845 175,000 21,538,845 55.18 6.01 Richmond 397,915 2,685,600 3,083,515 3,083,515 71.68 6.08 Atlanta 954,028 476,056 1,430,084 1,430,084 63.30 6.08 Chicago 6,236,986 21,100,687 27,337,673 270,000 27,607,673 61.80 6.13 St. Louis 1,240,770 800,000 2,040,770 2,040,770 49.25 6.17 Minneapolis 527,690 2,146,709 2,674,399 100,000 2,774,399 70.80 6.08 Kansas City 109,000 1,954,612 2,063,612 2,063,612 60.44 6.08 Dallas 682,500 682,500 682,500 59.58 6.08 San Francisco 4,275,900 ""U, 082," 709* 18,358,609 24,233 733,594 757,827 201,195 19,317,631 59.69 6.03 Total, July, 1920 48,772,794 158,499,195 207,271,989 214,293 9,953,648 10,167,941 2,023,747 219,463,677 47.82 6.05 Total, July, 1919 60,379,550 213,595,045 273,974,595 728,458 940,450 1,668,908 841,327 276,484,830 51.21 4.25 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

SEPTEMBER, 1920. FEDERAL RESERVE BULLETIN. 985 Discounted bills, including member banks' collateral notes, held by each Federal Reserve Bank on the last Friday in July, 1920, distributed by classes. [In thousands of dollars.] Member banks' col- Customers' lateral notes— paper All other Agricul- Live-stock secured by Trade Bankers' (commer- Federal Reserve Bank p t a u p r e al r. paper. m G e o n v t e w rn a - r Se G c o u v re e d rn b - y Otherwise a a c n c c e e p s t . - a a c n c c e e p s t . - c n ia . l e p . a s p .) e . r Total. obligations. ment war secured. obligations. Boston* 6 5,085 25 862 63,959 195 174 54 300 149 581 New York . ... 459 127,872 392,331 3,125 2,463 302,071 828,321 Philadelphia 328 49,148 93,830 714 299 36,289 180 608 Cleveland.. 341 247 14,849 62,185 36 2,289 79 74,113 154,139 Richmond .. 7,738 149 6,644 35,785 701 1,502 51,989 104,508 Atlanta.. 10,927 2,392 8,430 46,209 112 1,286 612 44,159 114,127 ^Chicago.. 25 812 17 981 138,496 459 3 748 1,588 256 559 444,643 St. Louis... 3,676 2,142 13,079 25,413 94 1,093 1,400 60,689 107,586 Minneapolis 12,199 30,935 3,964 4,841 940 523 25,122 78,524 Kansas City.. 8,786 27,567 6,928 39,069 198 1,163 42 25,446 109,199 Dallas 16,175 12,377 2,774 13,226 489 814 153 26,067 72,075 San Francisco 20,164 15,015 4,235 43,907 137 3,046 3,020 58,795 148,319 Total: 1920 106,611 95,909 281,766 959,251 3,166 19,498 9,830 1,015,599 2,491,630 1919 28,639 34,965 230,218 1,385,992 12,959 9,600 473 164,756 1,867,602 Acceptances purchased by each Federal Reserve Bank and held July 31, 1920, distributed by classes of accepting institutions. [In thousands of dollars. | Bank acceptances. Trade acceptances. Federal Reserve Bank. M ba e n m k b s e . r m p N t c e a r o m n u o m i s n b e t - - s e . r m b N S e a m t n o a k n t b e s - e . r P b r a i n v k a s te . b a F b g r o a e a a n r n n n e c c k d i h i g s e e n , s s . Total. Domestic. Foreign. Total. G to r t a a n l d . Boston. 24,040 2,087 2,590 315 29,032 29,032 New York 74,110 1,634 24,647 18,541 10,830 129,762 1,468 4,039 5,507 135,269 Philadelphia 7,903 200 1,3*5 1,359 598 11,405 11,405 Cleveland... 36,111 100 8,638 7,597 5,053 57,499 83 83 57,582 Richmond 5,588 5,588 5,588 Atlanta. 3,536 3,536 3,536 Chicago 38,749 13 642 567 222 40,193 40,193 St. Louis. 2,740 2,740 2,740 Minneapolis 2,659 183 317 3,159 3,159 Kansas City 3,248 3,248 3,248 Dallas. 718 718 718 •San Franci sco.. 34,966 28 7,5?5 5,433 4,744 52,766 87 1,085 1,172 53,938 Total: July 31, 1920. 234,368 1,975 45,137 36,087 22,079 339,646 1,638 5,124 6,762 346,408 June 30, 1920 255,564 1,876 54,598 38,647 21,856 372,541 1,939 10,071 12,010 384,551 May 31, 1920 275,369 2,954 56,187 47,448 29,469 411,427 1,542 7,223 8,765 420,192 Apr. 30, 1920 . 270,808 1,237 45,055 48,549 31,210 396,859 600 9,788 10,388 407,247 Mar. 31, 1920 282,339 1,389 55,390 51,012 23,654 413,784 572 5,566 6,138 419,922 Feb 28 1920 364,940 2,100 70,127 60,218 33,440 530,825 580 4,800 5,380 536,205 Jan 31 1920 383,375 6,134 68,592 61,218 36,203 555,522 1,893 4,595 6,488 562,010 July 31, 1919. 269,568 8,935 31,928 42,593 18,967 371,991 576 673 1,249 373,240 July 31 1918 154,614 1,129 7,302 18,082 8,975 190,102 7,781 197,883 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

986 FEDERAL RESERVE BULLETIN. SEPTEMBER, 1920. OPERATIONS OF THE FEDERAL RESERVE CLEARING SYSTEM FROM JULY 16 TO AUG. 15, 1920. [Amounts in thousands of dollars.] Items drawn on banks in own district. Items drawn on Items forwarded Items forwarded Located in Fed- Located outside Treasurer of Total. to other Federal | to parent bank Federal Reserve Bank or eral Reserve Bant Federal Reserve United States. Reserve Banks I or to branch in branch. and branch Bank and branch and their branches. same district. cities. cities. Number. Amount. Number. Amount. Number. Amount. Number. Amount. Number. Amount. Number.Amount, Boston 663,,564 663,762 2,89 453,296 105,010 20,564 3,658,654 1,137,622 110,150 75,372 New York ,028 719 2,018,3103 737,' 160 ,1293,100 878,512 88,756 5,644,391 3,400,166 847,770 587,518 21,941 8,20S Buffalo 346 112,845 342,559 57,836 8,570 4,589 495,475 175,270 139,585 36,440| 32,465 23,363 Philadelphia ,340; 805 863,524 1,783,023 272,315 162,795 43,4583,286,623 1,179,297 715,937 225,867 Clev C el i a n n c d innati 3 1 3 4 0 8 ; , 747| 1 2 6 8 1 4 , , 8 8 2 4 3 1 1,0 7 4 2 0 4 , , 0 3 0 9 3 7 1 , 1 9 91 5 , , 6 4 2 4 1 5 1 2 3 6 0 , , 8 7 0 0 3 0 3 4 , , 5 4 8 8 5 8 1,3 9 9 0 7 4 , , 5 0 5 25 3 4 2 8 6 0 0 , , 9 8 5 5 0 3 2 1 1 3 , , 9 2 7 9 2 6 3 1 0 6 , , 2 07 0 3 5 ; 4 9 5 , ,7 2 8 5 6 6 1 5 5 , , 7 5 0 7 0 3 * Pittsburgh 310,716 339,601 802,999 104,430 22,788 5,298 1,136,503 449,329 60,931 49,065 28,353 8,389* Richmond 94,190 157,398 1,305,475 282,155 35,030 5,950 1,434,695 445,503 114,573 64,913 9,411 ll,240> Baltimore 187;352, 177,171 630,909 86,528 42,445 9,011 860,706 272,710 145,067 138,119 9,301 9,801 Atlanta 103,,917| 66,404 284,557; 60,324 22,388' 7,794 410,862 134,522 19,983 18,5541 55,479 10,706* Birmingham ,467 20,914 138,460 12,242 10,355 884 187,282 34,040 16,848 12,448; 22,662 38,553- Jacksonville 716 20,636 114,853 13,423 9,954 1,278 154,523i 35,337 22,874 7,423! 6,150 2,440= Nashville* 44,823 35,199 179,027 23,875 11,303 1,440 235,153 60,514 25,729 5,128j 11,084 1,914 New Orleans 53,782 62,655 99,001 16,537 16,906 3,930 169,689! 83,122 64,180 10,748 6,740 1,219- Chicago 701,664 748,176 3,122,293 427,465 168,089' 22,301 3,992,046 1,197,942 273,966 41,286 10,874 5,35L Detroit 184,,671 194,960 347,4411 50,933! 22,338^ 3,231 554,450! 249,124 8,720 7,277 7,174 3,211 St. Louis* 204954 253,840 1,240,485 105,1931 83,184 12,941 1,528,623 371,974 22,694 8,637 24,987 2,317 Little Rock 058 24,817 254,018 19,341 6,300 2,223 300,376 46,381 8,226 1,922 28,655 3,992 Louisville 026 64,898 325,610 26,736 23,952 7,041 424,588 98,675 9,748 2,012 2,414 535- Memphis* 64,,752, 31,541 127,276 9,945 8,256; 1,304 200,284 42,790 2,499 1,226 3,312 l,2ia Minneapolis 227,,243 150,619 1,487,433 119,185 17,482, 5,721 1,732,158 275,525 95,171 36,228 Kansas City* 320,023 370,494 2,224,660 233,913 65,656; 8,226 2,610,339 612,633 253,960 75,829 8,8751 36,74$ Denver * 70,685! 60,777 294,284 21,748 17,236 2,862 382,205 85,387 105,875 16,444 51,720 17,525* Oklahoma City*.. 14,292 25,396 409,105 43,593 423,397 68,989 13,017 2,261 7,134 7,478 Omaha 83,,720 64,762 464,682) 42,200 16,408 1,771 564,810 108,733 31,384 8,993 20,497 7,864 Dall E a l s * Paso* 2 79 8 , ,, 5 9 1 5 3 9 6 12 5 , , 2 0 5 6 1 4 1,4 1 1 2 0 5 , , 0 9 3 02 5 24 1 6 2 , , 1 6 2 6 7 6 2 1 3 1 , ,2 9 0 0 4 1 2 4 , , 3 8 6 7 3 4 1,5 1 1 6 3 6 , ,0 4 6 4 5 9 1 3 2 1 7 6 , , 2 0 8 6 0 5 8 19 6 , , 3 8 2 9 7 2 2 7 9, , 6 5 5 4 3 3 5 1 4 3 , , 5 7 9 0 3 8 2 7 , , 9 70 3 6 0 Houston* 56,,906 44,216 355,513 39,179 40,319 2,214 452,738 85,609 18,846 23,980 9,163 2,410 San L P S S S F p a e o o r l a a o s r t t t n k A t l L c l a a e n i n a n s g k e d c e e o l e C s ity*.. 1 1 1 0 6 5 6 27 5 3 0 2 2 ; , , , , . , , , 6 3 0 2 9 2 2 0 4 9 4 3 3 2 3 6 7 2 1 3 0 8 2 4 1 5 4 4 6 2 7 , , , , , , 7 1 7 1 6 4 6 6 6 4 6 8 3 5 7 2 1 3 3 5 1 3 1 1 1 3 6 4 8 4 4 2 2 9 8 3 , , , , , , 7 2 0 1 4 9 2 6 9 6 5 1 1 6 7 9 1 8 2 4 1 3 1 1 9 7 1 1 1 7 , , , 6 9 1 6 1 6 4 4 0 6 1 3 4 5 5 4 7 6 4 1 1 2 1 3 6 3 6 1 0 , , , , , , 2 7 9 5 0 2 8 9 6 1 0 2 1 9 2 1 2 5 1 ; ! 82 6 5 2 7 , , , , , 6 2 2 3 5 8 9 5 5 6 5 4 7 4 6 2 6 6 4 2 6 2 4 1 7 3 5 1 7 7 3 7 2 2 1 7 , , , , , , 2 2 0 1 4 7 3 2 1 3 7 5 4 4 7 9 6 5 1 1 1 , ! 2 1 5 1 5 6 2 3 7 9 2 8 7 9 , , , , , , 1 9 6 0 3 9 0 6 3 8 0 6 4 6 4 5 9 5 " 5 1 2 2 6 5 2 6 3 , , , , , , 4 9 2 9 4 7 4 1 0 3 6 4 4 9 2 5 9 3 1 2 3 4 5 7 5 , , , , , , 6 0 6 2 1 3 2 2 7 4 3 5 4 2 4 8 0 3 6 2 2 3 1 4 0 5 1 6 6 , , , , , , 7 7 2 2 9 9 5 6 7 7 7 2 1 1 4 6 2 6 1 3 4 6 6 4 0 , , , , , , 1 3 7 9 4 2 7 7 4 3 6 7 5 4 1 6 2 2 ^ July 16 to Aug. 15,1920.7,093,981 7,407,875 27,951,862 4,510,462,1,999,6641 383,068 37,045,507 12,301,405 ^3,376,932 11,579,215 757,694 272,339- June 16 to July 15,1920.7,109,340 7,988,267|28,017,717(4,701,304 2,418,982 927,221 37,546,03913,616,792 23,388,306 21,651,490 736,000 265,407 July 16 to Aug. 15,1919.5,079,206 6,222,44018,419,221 3,670,8052,259,7261,553,788J25,758,153 11,447,033^2,728,099J31,535,757 560,189 244,828 Number of incorporat- Number of member Number of nonmem- ed banks other than banks in district on ber banks on par list mutual savings banks Federal Reserve district. Aug. 15. Aug. 15. not on par list Aug. 15. 1920 1919 1920 1919 1923 1919 Boston 432 429 257 241 New York 775 740 324 317 Philadelphia 691 670 432 406 Cleveland 864 832 1 077 956 1 119 Richmond 608 572 764 395 782 1.038 Atlanta 444 428 433 351 1,182 1,218 Chicago 1,396 1,364 4,241 3,192 964 St. Louis 567 527 2,512 1,653 174 962 Minneapolis . 985 893 2,901 1 463 1 401 Kansas City 1 071 1 013 3 388 2 371 1 7 gyg Dallas . 831 748 1,239 320 J 891 San Francisco 808 678 1,037 913 152 Total 9,472 8,894 18,605 12,578 2,138 7.621 1 Includes 6,553 items amounting to $1,965,000 forwarded direct to member banks in other Federal Reserve districts. 2 Includes 7,313 items amounting to $2,073,000 forwarded direct to member banks in other Federal Reserve districts. 3 Includes 4,544 items amounting to $4,023,000 forwarded direct to member banks in other Federal Reserve districts. * NOTE.—Number of business days in period was 26 in all Federal Reserve Bank and branch cities except in those marked with an asterisk where the number was 25, and in Oklahoma City where the branch opened for business on August 2 and where therefore the number of business days was 11 only. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

INTERDISTRICT TIME SCHEDULE APPROVED BY THE FEDERAL RESERVE BOARD SHOWING COLLECTION TIME FOR CASH ITEMS BETWEEN ALL FEDERAL RESERVE BANKS AND BRANCH BANKS. To— From— Boston New York Buffalo Philadelphia Cleveland Cincinnati Pittsburgh Richmond Baltimore Atlanta New Orleans Birmingham Jacksonville Nashville Chicago Detroit 8t. Louis Louisville Memphis Little Rock Minneapolis Helena Kansas City Omaha Denver Oklahoma City. Dallas El Paso Houston San Francisco... Spokane Portland Seattle Salt Lake City.. Los Angeles kroY we 1 1 1 2 2 2 2 2 3 3 3 3 3 2 2 3 2 3 3 3 5 3 3 4 3 4 4 4 5 5 5 4 6 aihpl rubsttiP s 2 1 2 1 2 2 2 1 2 2 2 2 2 2 2 2 2 2 3 3 5 3 3 4 3 3 4 3 5 5 5 4 5 .ellivh ihpme .ytiC i 1 w W 4 4 4 4 4 3 4 3 4 4 4 4 4 4 4 3 4 3 4 2 3 1 4 2 4 3 3 2 4 4 4 3 4 3 akopS ekaL to o 1 > CO 00 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

988 FEDERAL RESERVE BULLETIN. SEPTEMBER, 1920. CHANGES IN CONDITION OF THE FEDERAL RESERVE BANKS. During the five weeks between July 23 and account and the account of other Reserve August 27 the Federal Reserve Banks increased Banks. A reduction in Treasury certificates their holdings of discounted bills by 197.2 from the maximum of 298.5 millions held on millions from 2469.9 to 2667.1 millions, or at a July 30 to 273.7 millions, held four weeks weekly average rate of 39.4 millions. This later, represents largely the amount of special increase proceeded steadily from week to week certificates redeemed by the Government durand much the larger share of it, viz, 129.8 ing the more recent weeks. millions, is represented by the increase of ordi- Substantial increases for the period under nary commercial paper, as distinct from paper review are shown in the volume of interbank secured directly or indirectly by United States discounting, the holdings of paper discounted war obligations or by Treasury certificates (so- for other Reserve Banks showing an almost called war paper). Loan operations of the continuous increase from 123.2 millions on Government included the issue on August 16 July 23 to 166.5 millions on August 27. The of over 157 millions of 1-year 6 per cent loan latter amount was held exclusively by the certificates and the redemption before maturity Boston and Cleveland banks, bills discounted of moderate amounts of tax certificates falling for other Reserve Banks constituting about 36 due on September 15. On the whole, the effect per cent of the total discounts held on August of these operations was to arrest for a time the 27 by the Boston bank and over 50 per cent gradual liquidation by member banks of their of the total discounts held on that date by the holdings of Treasury certificates, for which Cleveland bank. No change is shown in the there is apparently a steadily growing demand list of rediscounting institutions, which inon the part of the investing public. Federal cludes the Federal Reserve Banks of Rich- Reserve Bank holdings of paper secured by mond, Atlanta, St. Louis, Minneapolis, Kansas Treasury certificates show but little change, the City, and Dallas. Four of the bants included August 27 total of 346.7 millions being slightly in this list, viz, those at Atlanta, St. Louis, below the July 23 total. As against this Kansas City, and Dallas, continued to apply slight decrease, the Federal Reserve Banks progressive discount rates during the period report a 60-million increase in their holdings under review. These four banks show an of paper secured by Liberty bonds and a 10- aggregate increase of 33.2 millions in their million increase in paper secured by Victory liabilities on paper rediscounted with other notes. Of the total amount of discounts Federal Reserve Banks besides a total increase carried on August 27 by the Reserve Banks, of 11.1 millions in their net holdings of paper the share of bills directly or indirectly pro- discounted for their member banks. tected by Government securities was slightly Holdings of acceptances purchased from below 50 per cent, of which a little over 50 per other Federal Reserve Banks show a further cent, as against 48.1 per cent on July 23, is increase from 42.5 to 48.9 millions, the latter represented by bills secured by Liberty bonds. amount representing acceptances sold by the Nearly 160 millions of the total increase of New York and Chicago banks without their 197 millions in discounts held is composed of indorsement to the Philadelphia, Cleveland, 15-day paper, which constituted slightly below and San Francisco banks. The aggregate 60 per cent of the total discounts held by the guarantors' liability of the Federal Reserve Reserve Banks on the last Friday in August. Banks on bills purchased for account of foreign Holdings of 30-day paper show an increase of correspondents remains unchanged at 16.2 over 7 millions, while those of 60-day paper millions. went up about 75 millions. On the other Government deposits fluctuated between hand, holdings of 90-day paper, and especially 11.6 millions on August 13 and 55 millions on of 6-month paper, show substantial reductions the following Friday. Reserve deposits moved for the period, the decrease in the holdings of within the relatively narrow limits of 1834.5 the latter class of paper reflecting largely the millions on August 13 and 1793.7 millions on seasonal liquidation of loans in the farm August 20, while other deposits, including districts. largely foreign Government credits and non- Further reduction from 353.5 to 321.9 mil- members' clearing accounts, show a further lions is shown in the Reserve Bank holdings of decline from 48.3 to 43.2 millions between acceptances. These holdings are at present July 23 and August 27. Net deposits increased concentrated largely in the New York, Cleve- from 1685.6 millions, the low figure for the land, Chicago, and San Francisco banks and period, to a high of 1717.9 millions five weeks are composed chiefly of bankers7 bills originally later. Federal Reserve note circulation shows purchased by the New York bank for its own a further expansion for the period of 85.4 mil- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

989 SEPTEMBER, 1920. FEDERAL RESERVE BULLETIN. lions, while Federal Reserve Bank notes in cir- silver deposits by the Government, amounted culation increased by 10.7 millions. The banks' to only 6.2 millions. The banks7 reserve ratio gold reserves, in consequence of further export continued to decline steadily during the period withdrawals, show a loss of 11.5 millions, while and on August 27 stood at 43.2 per cent, comthe loss in total cash reserves, because of further pared with 44.4 per cent five weeks before. Resources and liabilities of each Federal Reserve Bank at close of business on Fridays, July 30 to Aug. 27, 1920. RESOURCES. [In thousands of dollars.] Boston. Y Ne o w rk. d P e h lp il h a i - a. C la le n v d e . - m R o ic n h d - . Atlanta. Chicago. Lo St u . 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. Gold and gold certificates: July 30 11,862 88,016 1,188 10,272 2,403 7,784 24,347 3,138 7,225 515 5,649 11,780 174,179 Aug. 6 11,934 89,755 1,196 10,351 2,415 7,840 24,364 3,096 7,209 532 5,690 20,783 185,165 Aug. 13 11,996 91,440 1,220 10,407 2,380 7,913 24,358 2,997 7,225 548 5,267 13,879 179,630 Aug. 20 12,107 95,413 1,276 10,432 2,396 8,024 24,400 2,874 7,192 558 6,001 12,452 183,125 Aug. 27 12,179 97,015 1,285 10,587 2,426 8,133 24,351 3,747 7,210 557 6,195 12,454 186,139 Gold settlement fund—Federal Reserve Board: July 30 41,652 57,504 29,475 79,221 18,135 7,133 67,483 15,018 8,141 22,523 6,484 36,620 389,389 Aug. 6 39,644 50,589 50,116 65,364 19,371 7,212 71,364 11,721 8,250 26,359 5,312 25,957 381,259 Aug. 13 42,039 29,238 47,285 65,449 20,532 6,261 88,800 10,027 6,718 27,609 6,419 39,550 389,927 Aug. 20 31,666 36,576 41,033 62,600 17,812 6,213 80,278 13,555 6,874 22,579 4,895 42,811 366,892 Aug. 27 37,291 24,116 34,963 56,801 26,130 5,540 95,158 12,335 5,841 23,552 5,043 46,502 373,272 Gold with foreign agencies: July 30 8,142 40,932 8,922 9,146 5,465 4,015 13,272 5,242 3,011 5,353 2,900 5,131 111,531 Aug. 6 8,142 40,932 8,922 9,146 5,465 4,015 13,272 5,242 3,011 5,353 2,900 5,131 111,531 Aug. 13 8,142 40,932 8,922 9,146 5,465 4,015 13,272 5,242 3,011 5,353 2,900 5,131 111,531 Aug. 20 8,136 40,905 8,916 9,139 5,461 4,013 13,263 5,238 3,009 5,350 2,898 5,127 111,455 Aug. 27 8,136 40,905 8,916 9,139 5,461 4,013 13,263 5,238 3,009 5,350 2,898 5,127 111,455 Gold with Federal Reserve agents: July 30 136,866 279,139 105,697 151,473 37,561 47,218 157,137 44,719 31,309 35,202 27,160 100,231 1,153,712 Aug. 6 134,754 278,544 103,727 148,633 44,008 47,720 154,529 45,775 30,904 37,867 26,348 97,534 1,150,343 Aug. 13 132,865 277,642 101,527 149,261 42,376 49,688 174,823 44,303 30,919 37,747 28,405 95,006 1,164,562 Aug. 20 130,330 277,126 108,903 150,982 44,343 48,558 170,626 45,337 30,984 37,568 26,932 92,575 1,164,264 Aug. 27 128,392 275,950 116,899 150,744 42,768 48,109 166,067 45,537 31,057 38,078 25,997 85,086 1,154,684 Gold redemption fund: July 30 18,315 35,977 10,543 1,072 8,660 41,479 5,141 45 4,698 4,599 9,278 148,893 Aug. 6 19,919 35,943 11,145 2,347 5,961 9,012 43,481 5,173 188 3,578 4,943 10,617 152,307 Aug. 13 21,343 35,958 11,671 1,558 6,875 7,467 22,668 6,474 7 4,242 3,415 10,030 131,708 Aug. 20 23,224 35,983 12,673 1,742 8,019 7,707 26,379 6,062 54 4,973 4,427 9,372 140,615 Aug. 27 24,604 35,928 12,768 in 8,714 9,394 30,412 5,375 61 4,048 4,924 9,270 146,275 Total gold reserves: July 30 216, 837 501,568 155,825 251,184 72,650 74,810 303,718 73,258 49,731 68,291 46,792 163,040 1,977,704 Aug. 6 214,393 495,763 175,106 235,841 77,220 75,799 307,010 71,007 49,562 73,689 45,193 160,022 1,980,605 Aug. 13 216,385 475,210 170,625 235,821 77,628 75,344 323,921 69,043 . 47,880 75,499 46,406 163,596 1,977,358 Aug. 20 205,463 486,003 172,801 234,895 78,031 74,515 314,946 73,066 48,113 71,028 45,153 162,337 1,966,351 Aug. 27 210,602 473,914 174,831 228,048 85,499 75,189 329,251 72,232 47,178 71,585 45,057 158,439 1,971,825 Legal tender notes, silver, etc.: July 30 7,012 119,521 352 1,986 153 1,699 8,821 7,541 165 1,798 1,097 791 150,936 Aug. 6 6,752 119,528 255 2,283 145 1,669 8,416 7,742 75 1,829 1,525 920 151,139 Aug. 13 6,623 123,996 473 2,198 56 1,497 8,087 8,066 54 1,773 1,721 155,527 Aug. 20 6,308 124,112 360 2,345 199 1,561 8,012 8,145 62 1,661 1,933 155,486 Aug. 27 6,226 124,810 253 2,028 63 1,482 8,160 8,147 62 1,645 2,309 817 156,002 Total reserves: July 30 223,849 621,089 156,177 253,170 72,803 76,509 312,539 80,799 49,896 70,089 47,889 163,831 2,128,640 Aug.6 221,145 615,291 175,361 238,124 77,365 77,468 315,426 78,749 49,637 75,518 46,718 160,942 2,131,744 Aug. 13 223,008 599,206 171,098 238,019 77,684 76,841 332,008 77,109 47,934 77,272 48,127 164,579 2,132,885 Aug. 20 211,771 610,115 173,161 237,240 78,230 76,076 322,958 81,211 48,175 72,689 47,086 163,125 2,121,837 Aug. 27 216,828 598,724 175,084 230,076 85,562 76,671 337,411 80,379 47,240 73,230 47,366 159,256 2,127,827 Bills discounted: i Secured by Government war obligations- July 30 89,821 520,203 142,978 77,034 42,429 54,639 156,477 38,492 8,805 45,997 16,000 48,142 ,241,017 Aug. 6 105,030 551,919 138,296 77,068 41,533 56,121 155,956 35,427 10,014 47,319 17,299 49,416 ,285,398 Aug. 13.... 107,592 554,564 136,899 84,235 41,911 57,378 151,556 41,547 11,140 42,331 17,423 50,405 ,296,981 Aug. 20 129,309 542,329 136,498 75,068 41,797 61,362 157,600 33,652 5,732 45,498 22,494 50,270 ,301,609 Aug. 27.... 116,780 553,992 137,356 80,006 36,715 64,319 162,628 35,769 6,727 47,178 20,564 52,796 ,314,830 All other— j July 30 1 59,760 308,118 37,630 77,105 62,079 59,488 288,166 69,094 69,719 63,202 56,075 100,177 ,250,613 Aug.6 1 58,631 306,659 36,175 90,583 63,163 59,780 284,473 73,679 70,593 61,957 55,929 102,813 , 264,435 Aug. 13 59,162 347,974 40,865 91,609 62,658 59,842 282,219 70,212 65,893 55,364 53,820 102,407 ,292,025 Aug. 20...J 58,997 342,526 40,070 106,260 64,109 52,755 282,797 81,076 72,825 64,110 50,160 102,135 1 317,820 Aug. 27.... 68,766 366,051 37,060 116,708 64,047 54,573 276,136 76,461 71,482 62,526 53,084 105,403 1,352,297 Bills bought in open market:2 July 30 28,901 135,195 11,405 57,551 5,588 3,536 39,482 2,740 3,159 3,016 658 54,074 345,305 Aug.6 25,009 134,576 11,158 54,866 6,451 3,472 39,924 2,619 2,905 3,916 1,123 53,371 339,390 Aug. 13 ,. 19,796 109,443 12,489 64,712 7,302 3,220 43,349 2,160 1,230 4,005 688 52,224 320,618 Aug. 20 19,734 112,907 11,506 59,378 7,319 2,786 45,272 2,570 934 4,016 680 53,495 320,565 Aug. 27 20,116 100,523 19,904 7,146 2,188 41,099 2,315 935 3,984 1 555 56,308 321,997 9149°—20 7 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

990 FEDERAL RESERVE BULLETIN. SEPTEMBER, 1920. Resources and liabilities of each Federal Reserve Bank at close of business on Fridays, July 30 to Aug. 27, 1920—Continued. RESOURCES—Continued. [In thousands of dollars.] Boston. Y N o ew rk. d P el h p i h la i - a. C la le n v d e . - m R o ic n h d - . Atlanta.Chicago. Lo S u t. is. M ap i o n l n is e . - K C a i n ty sa . s Dallas. F c S i r s a a c n n o - . Total United States Government bonds: July 30 557 1,457 1,386 833 1,233 114 4,477 1,153 116 8,867 3,966 2,632 26,791 Aug. 6.. 557 1,462 1,386 834 1,233 114 4,490 1,153 116 8,867 3,966 2,632 26,810 Aug 13 557 1,462 1,386 834 1,233 114 4,490 1,153 116 8,867 3,966 2,632 26,810 Aug. 20.. 557 1,462 1,386 833 1,233 114 4,490 1,153 116 8,867 3,966 2,632 26,809 Aug 27 557 1,462 1,386 834 1,233 114 4,490 1,153 116 8,867 3,966 2,632 26,810 United States Victory notes: July 30. 5 50 10 3 1 69 Aug 6 5 50 10 3 1 69 Aug 13 5 50 10 3 1 69 Aug 20 5 50 10 3 1 69 Aug 27 5 50 10 3 1 69 United States cer- tiflcates of indebtedness: July 30. 26,657 81,502 39,357 25,322 12,260 15,665 39,669 17,233 8,481 12,883 8,300 11,191 298,520 Aug 6 21,541 68,743 32,165 23,322 12,260 15 665 39,723 17,274 8,481 12,842 8,300 11,174 271,490 Aug. 13.. . 26,525 66,116 36,205 23,322 12,260 15,665 39,656 17,257 8,481 12,845 8,300 11,204 277,836 Aug 20 21,583 69,629 33,598 24,250 12 260 15 665 40,038 17,302 8,481 12,830 8,302 13,220 277,158 Aug. 27. . 21,507 69,401 33,309 23,322 12,260 15,665 39,657 17,509 8,481 12,825 8,300 11,465 273,701 Total earning assets: July 30 205,701 1,046,525 232,756 237,855 123,589 133,445 528,271 128,712 90,280 133,966 84,999 216,216 3,162,315 Aug 6 210 773 1,063 409 219,180 246,683 124 640 135 155 524,566 130,152 92,109 134,902 86,617 219,406 3,187,592 Aug. 13 213,637 1,079,609 227,844 264,722 125,364 136,222 521,270 132,329 86,860 123,413 84,197 218,872 3,214,339 Aug 20 230 185 1,068,903 223,058 265,799 126 718 132 685 530,197 135,753 88,088 135,322 85,602 221,752 3,244,062 Aug. 27 227,731 1,091,479 229,015 287,772 121,401 136,862 524,010 133,207 87,741 135,381 86,469 228,604 3,289,672 Bank premises: July 30 1,535 3,783 619 1,156 1,079 601 2,118 866 566 762 972 232 14,289 Aug 6 . 1,582 3,869 619 1,156 1 079 603 2,118 866 566 762 992 232 14,444 Aug 13 .- 1,644 3,841 686 1,156 1,129 603 2,118 866 566 762 1,001 232 14,604 4ug 20 1,679 3,846 638 1,156 1 129 603 2,138 866 586 762 1,019 232 14,654 Aug 27 1,700 3,942 638 1,156 1,135 606 2,138 866 586 791 1,079 232 14,869 Uncollected items and other deductions from gross deposits: July 30 54,215 150,978 62,231 70,576 52,535 24,040 93,939 40,628 19,351 62,710 43,978 35,883 711,064 Aug. 6 57,362 154,059 59,798 71,858 53,904 23,534 99,966 46,329 19,078 68,089 42,304 37,407 733,688 Aug 13 66,610 173,908 69,619 78,816 56,113 29,444 101,751 44,890 21,523 70,758 45,712 40,058 799,202 Aug. 20 59,586 168,254 72,099 80,305 59,324 33,184 100,770 43,998 20,540 62,719 44,512 39,949 785,240 Aug 27 51,331 158,600 66,106 74 192 55 242 26,894 94,808 41,560 20,003 59,080 43,173 38,900 729,889 5 per cent redemption hind against Federal Reserve Bank notes: July 30 1,072 3,127 1,300 871 451 517 2,211 523 445 916 586 665 12,684 Aug. 6 1,072 3,156 1,300 959 451 526 2,505 527 339 916 586 665 13,002 Aug 13 . 1,072 2,157 1,300 959 451 482 2,433 524 402 916 586 665 11,947 Aug 20 1 072 2,189 1,300 1,039 451 491 2,096 524 271 916 586 665 11,600 Aug. 27 1,072 2,194 1,300 1,139 451 559 1,968 524 582 916 586 665 11,956 All other resources: July 30 244 802 355 179 278 114 606 312 82 274 276 255 3,777 Aug. 6 288 598 371 227 242 161 451 321 105 283 182 271 3,500 Aug. 13... 402 824 318 197 178 83 700 342 108 257 128 322 3,859 Aug 20 258 782 433 166 188 97 701 378 103 263 117 341 3,827 Aug 27 273 808 429 172 870 183 589 383 76 207 170 398 4,558 Total resources: July 30 486,616 1,826,304 453,438 563,807 250,735 235.226 939,684 251,840 160,620 268,717 178,700 417,082 6,032,769 Aug. 6 492,222 1,840,382 456,629 559,007 257,681 237,447 945,032 256,944 161,834 280,470 177,399 418,923 6,083,970 Aug 13 506 373 1 859,545 470 865 583 869 260 919 243,675 960,280 256,060 157,393 273,378 179,751 424,728 6,176,836 Aug. 20 .. 504,551 1,854,089 470,689 585,705 266,040 243,136 958,860 262,730 157,763 272,671 178,922 426,064 6,181,220 Aug. 27 498,935 1,855,747 472,572 594,507 264,661 241,775 960,924 256,919 156,228 269,605 178,843 428,055 6,178,771 Includes bills discounted for other Federal Reserve Banks: July 30 44,923 39,025 54 755 138,703 Aug 6 59 514 27 285 64 083 150 882 Aug 13 60,429 10,391 63,979 134,799 Aug. 20 67,916 8,306 74,964 151,186 Aug 27 66,911 99 620 166,531 * Includes bankers' acceptances bought from Federal Reserve Banks without their indorsement: July 30 3,445 10,014 10,001 19,092 42,552 Aug 6 2 518 10 014 9 329 16 590 38 451 Aug 13. 1 444 7,'130 21,559 17,389 47,522 Aug. 20 4,274 16,892 14,235 35,401 Aug. 27 11,812 21,440 15,672 48,924 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

SEPTEMBER, 1920. FEDERAL RESERVE BULLETIN. 991 Resources and liabilities of each Federal Reserve Bank at close of business on Fridays, July 30 to Aug. 27,1920—Continued. LIABILITIES. [In thousands of dollars.] Boston. Y N o ew rk. d P e h lp il h a i - a. C la le n v d e . - m R o ic n h d - . Atlanta. Chicago. Lo S u t. is. M ap i o n l n is e . - K C a i n t s y a . s Dallas. F c S i r s a a c n n o - . Total. Capital, paid-in: July 30 7,586 24,679 8,304 | 10,162 4,876 3,855 13,495 4,270 3,299 4,319 3,913 6,467 95,225 Aug. 6 7,586 24,680 8,312 ! 10.166 4,878 3,864 13,550 4,272 3,311 4,322 3,924 6,476 95,341 A A A u u u g g g . . . 2 2 1 7 0 3 7 7 7 , , , 5 5 5 8 8 8 9 9 0 2 2 2 5 5 5 , , ; 3 3 3 3 3 3 6 6 8 8 8 8, , , 3 3 3 1 9 9 2 9 8 1 1 1 0 0 0 , , . 2 2 1 4 4 6 6 9 7 5 5 5, , , 1 0 1 2 0 9 9 1 7 3 3 3 , , , 8 8 8 6 7 8 5 5 8 1 1 1 3 3 3 , , , 5 5 6 4 5 8 9 5 5 4 4 4 , , , 2 2 2 7 9 7 5 7 2 3 3 3, , , 3 3 3 2 2 2 9 2 8 4 4 4 , , , 3 3 4 4 2 0 5 2 8 3 3 3 , , , 9 9 9 3 2 3 3 9 6 6 6 6 , , ,8 7 7 1 8 8 9 3 4 9 9 9 6 6 7 , , , 5 7 0 5 5 5 1 9 5 Surplus fund: July 30 12,351 51,308 13,069 13,712 8,067 7,050 23,917 5,884 5,178 8,395 4,152 11,662 164,745 Aug. 6 12,351 51,308 13,069 13,712 8,067 7,050 23,917 5,884 5,178 8,395 4,152 11,662 164,745 Aug. 13 12,351 51,308 13,069 13,712 8,067 7,050 23,917 5,884 5,178 8,395 4,152 11,662 164,745 Aug. 20 12,351 51,308 13,069 13,712 8,067 7,050 23,917 5,884 5,178 8,395 4,152 11,662 164,745 Aug. 27 12,351 51,308 13,069 13,712 8,067 7,050 23,917 5,884 5,178 8,395 4,152 11,662 164,745 Government deposits: July 30 559 410 748 756 843 67 743 2,139 294 2,084 1,564 1,960 12,167 Aug. 6 1,110 10,014 1,039 316 2,218 1,160 1,064 661 533 643 1,638 384 20,780 Aug. 13 361 3,127 1,106 632 687 730 618 833 316 736 1,250 1,227 11,623 Aug. 20 3,700 19,089 2,444 3,125 1,347 1,971 7,086 5,009 1,747 2,658 1,755 5,028 54,959 Aug. 27 1,848 20,139 2,274 1,194 1,549 1,272 2,902 2,967 1,615 2,767 1,665 3,318 43,510 Due to members— reserve account: July 30 118,938 710,488 104,911 144,444 57,772 50,041 259,736 64,246 47,770 80,970 52,925 115,915 1,808,156 Aug. 6 117,727 722,701 106,997 142,913 58,593 49,757 258,318 60,801 48,174 79,652 53,677 117,488 1,816,798 Aug. 13 121,109 727,642 107,531 144,941 57,045 50,157 265,708 64,993 43,272 79,799 53,310 119,035 1,834,542 Aug. 20 116,955 706,633 104,482 146,448 59,185 49,175 253,698 65,446 42,670 81,240 51,855 115,888 1,793,675 Aug. 27 118,776 717,885 106,384 147,831 58,984 49,319 262,480 66,042 42,420 78,952 53,512 115,917 1,818,502 Deferred availability items: July 30 44,124 101,075 47,779 55,950 40,891 20,838 63,970 37,092 17,502 55,678 27,558 24,233 536,690 Aug. 6 43,636 94,727 46,853 53,258 42,416 20,361 64,987 44,902 18,419 67,966 24,836 27,417 549,778 Aug. 13 51,144 113,013 53,127 63,207 44,099 26,429 72,184 39,542 19,205 59,351 28,347 29,749 599,397 Aug 20 48,141 110,143 54,670 63,953 45,600 26,431 71,532 40,557 18,597 53,722 28,238 29,510 591,094 Aug. 27 41,093 48,549 60,734 42,921 22,755 65,789 36,075 17,306 52,087 26,542 29,874 542,564 Other deposits, including foreign government credits: July 30 2,230 26,024 2,743 2,328 1,368 1,139 3,891 1,538 965 1,438 6,794 51,296 Aug. 6 3,386 21,340 2,773 2,416 1,350 1,055 3,808 1,676 941 1,471 3,716 44,821 Aug. 13 4,311 21,895 3,114 2,408 1,405 1,094 3,635 1,600 961 1,506 3,301 46,090 Aug. 20 3,053 21,409 2,819 2,277 1,479 1,099 3,898 1 641 928 1,396 847 3,982 44,828 Aug. 27 2,158 20,692 3,016 2,305 1,462 1,032 4,029 1,566 917 1,487 3,621 43,180 'Totalgross deposits: July 30. 165,851 837,997 156,181 203,478 100,874 72,085 328,340 105,015 66,531 140,170 82,885 148,902 2,408,309 Aug. 6. 165,859 848,782 157,662 198,903 104,577 72,333 328,177 108,040 68,067 149,732 81,040 149,005 2,432,177 Aug. 13 176,925 865,677 164,878 211,188 103,236 78,410 342,145 106,968 63,754 141,392 83,767 153,312 2,491,652 Aug. 20 171,849 857,274 164,415 215,803 107,611 78,676 336,214 112,653 63,942 139,016 82,695 154,408 2,484,556 Aug. 27 163,875 857,555 160,223 212,064 104,916 74,378 335,200 106,650 62,258 135,293 82,614 152,730 2,447,756 Federal Reserve notes in circulation: July 30 284,842 849,589 254,445 315,526 125,214 139,277 533,589 126,517 76,374 98,887 79,192 236,686 3,120,138 Aug. 6 289,872 852,369 255,765 314,771 128,224 140,787 537,951 128,214 76,052 100,454 79,509 237,893 3,141,861 Aug. 13 292,189 852,695 262,309 326,617 132,342 140,707 538,278 128,262 75,799 101,832 79,202 238,949 3,169,181 Aug. 20... . 294,550 854,295 262,239 322,899 132,692 139,548 541,649 128,584 75,849 103,655 79,494 239,271 3,174,725 Aug. 27 296,131 854,925 268,028 334,884 133,969 142,426 543,929 128,316 75,901 103,780 79,415 241,933 3,203,637 Federal Reserve Bank notes in circulation: July 30 13,894 35,958 19,277 18,478 10,455 11,496 33,355 8,557 7,807 15,019 7,098 10,780 192,168 Aug. 6 14,297 35,360 19,465 18,675 10,572 11,805 34,312 8,776 7,720 15,486 7,278 11,088 194,834 Aug. 13 14,875 35,393 19,835 19,186 10,688 11,901 34,704 8,864 7,802 15,395 7,199 11,070 196,912 Aug. 20 15,462 35,267 19,902 19,784 10,866 12,123 35,100 9,317 7,808 15,128 7,065 10,741 198,563 Aug. 27 16,065 34,790 20,005 20,006 10,876 12,109 35,378 9,650 7,844 15,510 7,065 11,495 200,793 All other liabilities: July 30 2,092 26,773 2,162 2,451 1,249 1,469 6,988 1,597 1,431 1,927 1,460 2,585 52,184 Aug. 6 2,257 27,883 2,356 2,780 1,363 1,608 7,125 1,758 1,506 2,081 1,496 2,799 55,012 Aug. 13 2,444 29,134 2,462 2,999 1,489 1,742 7,681 1,810 1,538 2,042 1,502 2,952 57,795 Aug. 20 2,750 30,609 2,666 3,261 1,703 1,864 8,431 2,017 1,658 2,132 1,583 3,198 61,872 Aug. 27 2,933 31,833 2,848 3,592 1,704 1,924 8,815 2,122 1,718 2,219 1,661 3,416 64,785 -Total liabilities: July 30 486,616 1,826,304 453,438 563,807 250,735 235,226 939,684 251,840 160,620 268,717 178,700 417,082 6,032,769 Aug. 6 492,222 1,840,382 456,629 559,007 257,681 237,447 945,032 256,944 161,834 280,470 177,399 418,923 6,083,970 Aug. 13 506,373 1,859,545 470,865 583,869 260,919 243,675 960,280 256,060 157,393 273,378 179,751 424,728 6,176,836 Aug. 20 504,551 1,854,089 470,689 585, 705 266,040 243,136 958,860 262,730 157,763 272,671 178,922 426,064 6,181,220 Aug. 27 , 1,855,747 472,572 594,507 264,661 241,775 960,924 256,919 156,228 269,605 178,843 428,055 178,771 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

992 FEDERAL RESERVE BULLETIN". SEPTEMBER, 1920. Resources and liabilities of each Federal Reserve Bank at close of business on Fridays, July 30 to Aug. 27,1920—Continued. LIABILITIES—Continued. [In thousands of dollars.] Boston. Y N o ew rk. d P e h lp il h a i - a. C la le n v d e . - m R o ic n h d - . Atlanta. Chicago. Lo S u t. is. M ap i o n l n is e . - K C a i n t s y a . s Dallas. F c S i r s a a c r n o i - . Total. MEMORANDA. Contingent liability as indorser on discounted paper rediscounted with other Federal Reserve Banks: July 30 23,133 21,607 30,607 13,738 22,902 26,716 138,703 Aug. 6 24,924 28,183 31,904 12,226 25,756 27,889 150,882 Aug. 13 24,667 25,209 20,941 10,073 23,534 30,375 134,799 Aug. 20 24,720 32,723 27,628 17,197 17,640 31,278 151,186 Aug. 27 25,000 31,963 32,434 20,347 22,247 34,540 166,531 Contingent liability on bills purchased for foreign correspondents: July 30 1,168 6,092 1,280 1,312 784 576 1,904 752 432 768 416 736 16,220 Aug. 6 •_ 1,168 6,093 1,280 1,312 784 576 1,904 752 432 768 416 736 16,221 Aug. 13 1,168 6,083 1,280 1,312 784 576 1,904 752 432 768 416 736 16,211 Aug. 20 1,168 6,083 1,280 1,312 784 576 1,904 752 432 768 416 736 16,211 Aug. 27 1,168 6,077 1,280 1,312 784 576 1,904 752 432 768 416 736 16,205 Maturities of bills discounted and bought, also of Treasury certificates of indebtedness. [In thousands of dollars.] Within 15 16 to 30 31 to 60 61 to 90 Over 90 days. days. days. days. days. Total. W'i« discounted: >) 1,464,290 225,623 426,928 304,257 70,532 2,491,630 A A u ug g . . 1 6 3 1 1 , , 5 5 2 1 9 9, , 9 3 6 4 9 1 1 1 8 8 9 9 , , 6 93 3 0 2 4 4 5 3 8 4 , , 7 4 7 0 0 0 3 3 4 34 2 , , 4 3 0 2 5 6 5 5 6 3 , ,8 2 3 3 6 0 2 2, , 5 5 8 4 9 9 , , 0 8 0 3 6 3 Aug. 20 1,515,379 219,669 511,330 332,684 40,367 2,619,429 Aug. 27 1,581,792 247,986 491,886 301,240 44,223 2,667,127 Bills bought: July 30 99,100 86,034 129,544 30,627 345,305 Aug. 6 114,800 69,882 122,345 32,363 339,390 Aug. 13 114,917 71,014 105,155 29,532 320,618 Aug. 20 112,734 70,815 110,891 26,157 320,597 Aug. 27 110,768 79,865 105,240 26,09.2 321,965 United States certificates of indebtedness: July 30 42,325 12,000 27,430 28,144 188,621 298,520 Aug. 6 17,967 12,900 37,738 40,273 162,612 271,490 Aug. 13 27,340 16,700 38,102 25,503 170,191 277,836 Aug. 20 25,538 19,483 28,524 16,908 186,705 277,158 Aug. 27 27,325 15,441 34,431 11,002 185,502 273,701 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

SEPTEMBER, 1920. FEDERAL RESERVE BULLETIN. 993 FEDERAL RESERVE NOTES. Federal Reserve agents' accounts at close of business on Fridays, July 30 to Aug. 27, 1920. [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 - . Atlanta. Chicago. Lo S u t. is. M ap i o n l n is e . - K C a i n ty sa . s Dallas. F c S i r s a a c n n o - . Total. RESOURCES. Federal Reserve notes on hand: July 30 49,300 135,000 28,780 31,150 27,313 68,520 75,740 18,240 11,395 6,450 12,350 080 469,318 Aug. 6 43,300 135,000 22,780 30,750 26,714 68,165 66,140 17,040 11,095 5,640 12,110 080 443,814 Aug. 13 42,000 135,000 24,940 27,725 24,974 71,205 73,900 16,440 10,455 5,280 11,020 5,080 448,019 Aug. 20 52,400 135,000 24,940 30,325 25,088 70,435 72,200 15,640 9,675 4,880 13,200 6,080 459,863 Aug. 27 53,660 141,000 30,940 26,565 27,348 70,515 71,720 16,640 8,975 6,880 13,010 6,080 473,333 Federal Reserve notes outstanding: July 30 295,953 981,658 265,305 331,711 131,481 143,037 592,052 144,923 78,095 105,409 82,729 273,435 3,425,788 Aug. 6 299,841 974,670 269,335 330,870 133,928 146,695 599,764 145,279 77,240 105,983 83,157 271,738 3,438,500 Aug. 13 303,252 971,932 270,334 338,224 138,296 145,582 596,498 146,967 77,145 107,704 83,305 271,730 3,450,969 Aug. 20 304,317 968,934 279,710 345,545 137,648 145,223 594,721 146,301 77,040 109,925 82,572 270,939 3,462,875 Aug.27 305,679 972,767 277,707 349,866 137,773 146,693 593,521 145,481 77,013 109,295 82,826 273,110 3,471,731 Collateral security for Federal Reserve notes outstanding: Gold and gold certificates— July 30.... 900 196,608 32,025 2,500 3,810 13,052 10,331 259,226 Aug. 6.... 900 196,608 32,025 2,500 3,810 13,052 10,331 259,226 Aug. 13... 900 196,608 32,025 2,500 3,810 13,052 11,331 260,226 Aug. 20... 900 196,608 32,025 2,500 3,810 13,052 11,331 260,226 Aug.27.... 900 196,608 32,025 2,500 3,810 13,052 11,331 260,226 Gold redemption fund— July 30 18,966 9,531 14,308 19,448 4,061 3,218 9,992 3,378 1,557 3,342 4,095 19,737 111,633 Aug. 6 16,854 18,936 17,338 16,608 2,508 5,220 9,384 2,934 2,052 2,507 5,283 18,160 117,784 Aug. 13.... 19,965 18,034 15,138 17,236 3,876 3,688 8,679 3,163 1,917 3,387 6,340 16,520 117,943 Aug. 20 23,430 17,518 17,514 18,957 1,843 2,558 9,482 3,096 1,832 2,208 4,867 14,949 118,254 Aug.27 21,492 16,342 15,510 18,719 3,268 3,609 8,922 2,896 1,805 2,718 5,932 13,318 114,531 Gold settlement fund—Federal Reserve Board- July 30 117,000 73,000 91,389 100,000 33,500 41,500 147,145 37,531 16,700 31,860 12,734 80,494 782,853 Aug. 6 117,000 63,000 86,389 100,000 41,500 40,000 145,145 39,031 15,800 35,360 10,734 79,374 773,333 Aug. 13.... 112,000 63,000 86,389 100,000 38,500 43,500 166,144 37,330 15,950 34,360 10,734 78,486 786,393 Aug. 20.... 106,000 63,000 91,389 100,000 42,500 43,500 161,144 38,431 16,100 35,360 10,734 77,626 785,784 Aug.27.... 106,000 63,000 101,389 100,000 39,500 42,000 157,145 38,831 16,200 35,360 8,734 71,768 779,927 Eligible paper- Amount required- July 30. 159,087 702,519 159,608 180,238 93,920 95,819 434,915 100,204 46,786 70,207 55,569 173,204 2,272,076 Aug. 6. 165,087 696,126 165,608 182,237 89,920 98,975 445,235 99,504 46,336 68,116 56,809 174,204 2,288,157 Aug. 13. 170,387 694,290 168,807 188,963 95,920 95,894 421,675 102,664 46,226 09,957 54,900 176,724 2,286,407 Aug. 20. 173,987 691,808 170.807 194,563 93,305 96,665 424,095 100,964 46,056 72,357 55,640 178,364 2,298,611 Aug. 27. 177,287 696,817 160.808 199,122 95,005 98,584 427,454 99,944 45,956 71,217 56,829 188,024 2,317,047 Excess amount held— July 30. 19,395 259,995 1,581 27,785 14,925 21,836 49,210 10,024 25,828 42,005 17,164 15,257 505,005 Aug. 6.. 23,583 263,734 6,381 38,003 19,697 20,392 35,131 12,101 26,790 44,887 17,542 22,088 530,329 Aug. 13. 16,163 286,145 2,438 33,877 4,319 24,508 55,175 11,171 23,665 31,640 17,031 13,412 519,544 Aug. 20. 34,053 271,664 1,220 39,416 17,036 20,164 61,574 16,245 26,105 41,184 17,694 15,522 561,877 Aug. 27. 28,375 291,854 4,511 62,465 11,072 22,484 52,099 14,575 18,653 42,386 17,374 14,061 579,909 Total resources: July 30 660,601 2,358,311 560,971 722,357 305,200 376,430 1,309,054 318,110 193,413 259,273 194,972 567,207 7,825,899 Aug. 6 666,565 2,348,074 567,831 730,493 314,267 381,947 1,300,799 319,699 192,365 262,493 195,966 570,644 7,851,143 Aug. 13 664,667 2,365,009 568,046 738,050 305,885 386,877 1,322,071 321,545 188,410 252,328 194,661 561,952 7,869,501 Aug. 20 695,087 2,344,532 585,580 760,831 317,420 381,045 1,323,216 324,487 189,860 265,914 196,038 563,480 7,947,490 Aug.27 693,393 2,378,388 590,865 788,762 313,966 386,385 1,310,861 322,177 181,654 267,856 196,036 566,361 7,996,704 LIABILITIES. Federal Reserve notes received from Comptroller—gross: July 30 615,700 2,238,960 605,880 623,220 342,500 357,420 1,094,880 345,360 169,580 235,480 170,980 476,580 7,276,540 Aug. 6 615,700 2,238,960 605,880 624,820 345,900 361.720 1,095,600 346,960 169,580 236,080 171,988 477,580 7,290,760 Aug. 13 619,700 2,245,060 611,240 631,520 350,160 365;680 1,104,800 349,820 169,580 238,560 171,980 480,100 7,338,200 Aug. 20 633,700 2,245,060 623,240 643,720 351,660 365,680 1,105,520 350,420 169,580 241,560 174,900 482,740 7,387,780 _ Aug.27 638,260 2,257,760 629,24C 546,520 355,620 369,680 1,108,400 352,800 169,580 244,420 175,900 487,400 7,435,580 Less amounts returned for destruction: July 30 270,447 1,122,302 311,795 260,359 183,706 145,863 427,088 182,197 80,090 123,621 75,901 198,065 3,381,434 Aug. 6 272,559 1,129,290 313,765 263,200 185,258 146,860 429,696 184,641 81,245 124,457 76,713 200,762 3,408,446 Aug. 13 274,448 1,138,128 315,966 265,571 186,890 148,893 434,402 186,413 81,980 125,576 77,655 203,290 3,439,212 Aug. 20 276,983 1,141,126 318,590 267,850 188,924 150,022 438,599 188,479 82,865 126,755 79,128 205,721 3,465,042 Aug.27 278,921 1,143,993 320,593 270,089 190,499 152,472 443,159 190,679 83,592 128,245 80.064 208,210 3,490,516 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

994 FEDERAL RESERVE BULLETIN. SEPTEMBER, 1920. Federal Reserve agents' accounts at close of business on Fridays, July 30 to Aug. 27, 1920—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 - . Atlanta. Chicago. Lo S u t. is. M ap i o n l n is e . - K C a i n t s y a . s Dallas. F c S i r s a a c n n o - . Total. LIABILITIES—COn. Net amount of Federal Reserve notes received from Comptroller of the Currency: July 30 345 253 1,116,658 294 085 362,861 158,794 211,557 667,792 163,163 89 490 Ill 859 95,079 278,515 895,106 Aug 6 343,141 1,109,670 292,115 361,620 160,642 214,860 665,904 162319 88,335 111623 95 267 276 ^ 818 3'882' 314 Aug. 13 345'252 L, 106,932 295'274 365,949 163,270 216,787 670,398 163,407 87'600 984 94'325 276* 810 3'898^ 988 Aug. 20 356,717 1,103,934 304,650 375,870 162,736 215 658 666,921 161941 86,715 114 805 95'772 277 019 3'922' 738 Aug. 27 359 J 33fl1,113,767 308^ 647 376,431 165,121 217,208 665,241 162,121 85^988 175 95^836 279^190 945 \ 064 Collateral received from Federal Reserve Bank: Gold- July 30 136,866 279,139 105,697 151,473 37,561 47,218 157,137 44,719 31,309 35 202 27,160 100,231 1,153,712 Aug. 6 134,754 278,544 103,727 148,633 44,008 47,720 154,529 45,775 30,904 37,867 26,348 97,534 1,150,343 Aug. 13 132,865 277,642 101,527 149,261 42,376 49,688 174,823 44,303 30,919 37 747 28,405 95,006 1,164,562 AHig. 20.... 130,330 277,126 108,903 150,982 44,343 48,558 170,626 45,337 30,984 37,568 26,932 92,575 1,164,264 Aug. 27.... 128,392 275,950 116,899 150,744 42,768 48,109 166,067 45,537 31,057 38,078 25,997 85,086 1,154,684 Eligible paper- July 30 178,482 962,514 161,189 208,023 108,845 117,655 484,125 110,228 72,614 112 212 72,733 188,461 2,777,081 Aug. 6 188,670 959,860 171,989 220,240 109,617 119,367 480,366 111,605 73,126 113003 74,351 196,292 2,818,486 Aug. 13 186,550 980,435 171,245 222,840 100,239 120,402 476,850 113,835 69,891 101597 71,931 190,136 2,805,951 Aug. 20 208,040 963,472 172,027 233,979 110,341 116,829 485,669 117,209 72,161 113541 73,334 193,886 2,860,488 m Aug._27 205,662 988,671 165,319 261,587 106,077 121,068 479,553 114,519 64,609 113603 74,203 202,085 2,896;956 July 30. . 6CC60" 2,358,311 560,971 722,357 305,200 376,430 1,309,054 318,110 193,413 259273 194,972 567,207 7,825.899 Aug. 6 666',565 2,348,074 567,831 730,493 314,267 381,947 1,300,799 319,699 192,365 262 493 195,966 570,644 7, 851.143 Aug. 13 664,667 2,365,009 568,046 738,050 305,885 386,877 1,322,071 321,545 188,410 252.328 194,661 561,952 7,869,501 Aug. 20 695,087 2 344 532 585 580 760 831 317,420 381,045 1,323,216 324,487 189 860 265914 196,038 563 480 7947,490 Aug. 27 693,393 2,378,388 590,865 788,762 313,966 386,385 1,310,861 322,177 181,654 267 856 196,036 566,361 7,996,704 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

SEPTEMBEH, 1920. FEDERAL RESERVE BULLETIN. 995 CONDITION OF MEMBER BANKS IN LEADING CITIES. Continued, though moderate, liquidation of changes in their holdings of Government war Government war securities and of principal securities proper. Loans secured by Governloan accounts, accompanied by a considerably ment war obligations followed a steady downlarger reduction in individual deposits, are ward course, the August 20 total of 959 millions some of the main developments in the bank- being about 41 millions below the total reported ing field during the period July 16 to August five weeks previous. Most of this reduction is 20, as indicated by the weekly condition re- reported by the banks located outside of New ports of about 815 member banks in leading York City, the corresponding reduction for the cities. Borrowings from the Federal Reserve New York City banks being about 15 millions. Banks during August show a substantial in- Loans protected by corporate securities carried crease. A summary of changes in the prin- on August 20 are given as 3,006 millions, or 41 cipal asset and liability items of these banks millions below the July 16 total. For the New follows: York banks a slightly larger reduction of this item, from 1,135 to 1,088 millions, may be noted. Resources and liabilities of member banks in leading cities All other loans and investments, comprising from July 16 to Aug. 20, 1920. largely commercial loans and discounts, show [In millions of dollars.] an increase for the period of 66 millions, with the consequence that the total loan and investment July July July Aug. Aug. Aug.account at the close of the period—16,883 16. 23. 30. 6. 13. 20. millions—is 51 millions less than at the begin- United States bonds 877 874 876 876 ning of the period under review- For the New United States Victory notes 194 194 193 184 190 189 York City banks an increase of 38 millions in United States certificates of in- 473 462 434 401 444 other loans and investments and a reduction of debtness Total United States secu- 63 millions in total loans and investments are rities owned 1,544 1,530 1,503 1,468 1,460 1,509 shown. The ratio of combined holdings of Loans secured by Government war obligations, including re- United States war securities and loans supdiscounts with Federal Reserve Bank 1,000 973 964 959 ported by such securities to total loans and Loans secured by corporate investments of reporting banks shows a further stocks and bonds 3,047 3,060 3,060 3,011 3,006 All other loans and investments, decline from 13.4 to about 13 per cent. In including rediscounts with Federal Reserve Bank 11,343 11,329 11,338 11,360 11,407 11,409 New York City, because of the relatively Total loans and invest- heavier liquidation of United States securities ments, including redis- during the period, this ratio shows a decline counts with Federal Reserve Bank 16,934 16,90116,883 16,812 16,829 16,883 from 17.4 to 16.7 per cent. Reserve balances with Federal Reserve Banks 1,422 1,388 1,369 1,375 1,3921,363 After a practically continuous decline to 67 Cash in vault 368 361 355 360 355 352 Net demand deposits 11,552 11,427 11,399 11,312 11,392 11,256 millions on August 13, Government deposits, Time deposits 2,715 2,706 2,722 2,727 2,724 following the placing of the August 16 Treasury B G i o ll v s e rn d m is e c n o t u d n e te p d o sit a s nd redis- 122 115 74 67 145 certificate issue, rose to 145 millions, an increase counted with Federal Reserve Banks: of 23 millions for the period. On the other Total... 1,990 1,953 1,973 2,022 2,050 hand, other demand deposits (net) show a Secured by Government war obligations 984 972 1,003 1,018 1,024 reduction to 11,256 millions, or of 296 millions, Allother 1,006 1,019 1,032 1,062 while time deposits increased from 2,698 to 2,724 millions. For the New York City banks On August 16 the Treasury issued over 157 decreases of 9 millions in Government deposits millions of 1-year 6 per cent loan certificates, and of 199 millions in other demand deposits with the consequence that there is shown are shown, as against an increase of about 6 on the following Friday a 50 million dollar millions in time deposits. increase in the total Treasury certificate hold- Total accommodation of reporting members ings of the reporting banks, as against a 79 at Federal Reserve Banks, as shown on the books million reduction in these holdings during the of the latter, fluctuated between 1,953 millions four previous weeks. Both Liberty bond and on July 23 and 2,086 millions on August 20, Victory note holdings show but slight and, the latter total marking an increase of 96 on the whole, downward changes. A similar millions over the total reported at the begindevelopment is noted for the member banks ning of the period. Of the larger amount in New York City, which report for the first slightly less than 50 per cent was represented 4 weeks a gradual reduction of their certificate by loans secured by Government war obligaholdings by over 55 millions, as against an addi- tions, including Treasury certificates. The tion to these holdings during the week ending ratio of total accommodation at the Federal August 20 of over 16 millions, and but slight Reserve Banks to total loans and investments Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

996 FEDERAL RESERVE BULLETIN. SEPTEMBER, 1920. of reporting banks, which measures in a way Reserve balances fluctuated in general acthe extent to which the loan burden of the cord with changes in demand deposits, and member banks is shifted to the reserve institu- on August 20 totaled 1,363 millions, a reductions, shows an almost continuous rise from tion of 59 millions since July 16. Cash in 11.8 to 12.4 per cent. For the New York City vault shows a slight decline from 368 to 352 banks an increase in this ratio from 12.1 to 13.6 millions. For the New York City banks per cent is shown, corresponding to an increase decreases of 46 millions in reserve balances of 80.8 millions in their borrowings from the and of about 10 millions in cash in vault are local Federal Reserve Bank. shown. Principal resources and liabilities of member banks in leading cities, including member bants located in Federal Reserve Bank cities and in Federal Reserve branch cities as at close of business on Fridays, from July 23 to Aug. 20, 1920. 1. ALL REPORTING MEMBER BANKS. [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. m Ch ,; i « c a ., g r~ o. Lo S» ui ti s .. _ a Miv p i o iin l n i nn S ee i -- K C a i n t s y a . s Dallas. Sa c n i s F c r o a . n- Total. Number of reporting banks: July 23 114 107 68 814 July 30 114 107 814 Aug. 6 114 107 815 Aug. 13 114 107 818 Aug. 20 114 106 818 United States bonds to secure circulation: July 23 12. 311 46, 659 11,347 42,095 28,352 14,235 21,549 16, 925 7, 321 15,358 19, 573 32,535 268,260 July 30 12,311 46,657 11,347 42,095 28,350 14,310 21,549 I 16,924 7,321 15,396 19, 573 32, 535 268,368 Aug. 6 12,311 46, 582 11,347 42,095 28, 483 14,310 21.549 ! 16,924 7,318 15,396 19,573 32,535 268, 423 Aug. 13 12,311 46, 723 11,347 42,134 28,483 14,235 21.550 16,924 7,321 15,396 19,573 32,535 268,532 Aug. 20 12, 311 46,750 11,347 42,135 14,285 21,550 16, 924 7,321 15,421 19,573 32,635 268, 735 Other United States bonds, including Liberty bonds: July 23 14,060 251,008 29,026 59,400 33,782 28,197 59, 614 12,971 9,857 23,569 21, 394 63,245 606,123 July 30 14,214 254. 792 29,150 58, 982 33, 851 28,918 56,865 12,260 9,676 23,458 , 21,659 63,770 607,595 Aug. 6 : 15,148 259; 899 29,498 59,595 33,672 28,470 56,607 13,110 9,801 23,812 ' 21~, 44'1" 63,628 614,681 Aug. 13 | 15, 248 255,003 30,371 59,174 33, 634 28,444 54,771 13, 295 9,721 22,499 21,211 64,311 607,682 Aug. 20 ! 15, 399 254.009 28,906 59,616 33,70^ 28,563 55, 621 13,318 9,761 2244,335555 21,307 62,563 607,127 United States Victory notes: July 23 7,070 83,084 9,047 19, 228 7,658 4,282 39,996 2,652 1,010 4,513 3,428 11,733 193, 701 July 30 6,9S1 82, 781 9,014 19,407 7,391 4,317 39,747 2,689 997 4,579 3,194 12,021 193,118 Aug. 6 6,084 75,021 9,011 19, 486 7,759 4, 400 38,987 2,649 882 4,504 3,321 11,928 184, 032 Aug. 13 6^072 81, 226 9,366 19,526 7,766 4,429 38, 985 2, 675 1,016 4,299 3,146 12,113 190,619 Aug. 20 6,071 80,287 19,408 7,667 4,453 38,516 2,731 1,039 4,523 3,160 12, 502 189, 244 United States certificates of indebtedness: July 23 23, 453 254,340 26,600 24,013 11,844 8.694 61, 787 5,726 3,118 11,300 4,801 26, 423 462.099 July 30 21, 332 231,437 25,325 22,301 12,171 9', 404 59,753 6,398 2,878 10,435 5,378 27,146 433; 958 Aug.6 19,778 211,873 23,971 20,995 11,514 9,203 54, 261 5,126 2,730 9,980 5,315 26, 479 401,225 Aug. 13 19,246 207,286 22,406 20,931 11,549 9,509 53', 572 5,036 2,693 9,957 5.298 26,161 393,644 Aug. 20 25,749 225, 814 24,636 25,195 12,327 11,068 65,135 5,827 2,812 9,221 6,090 29,579 443,453 Total United States securities owned: July 23 56,894 635,091 76,020 144,736 81,636 55,408 182,946 38,274 21, 306 54,740 49,196 133,936 1,530,183 July 30 54,838 615,667 74,836 142,785 81, 763 56,949 177,914 38,271 20,872 53,868 49,804 135,472 1,503,039 Aug.6 53,321 593, 375 73, 827 142,171 81,428 56.383 171,404 37,809 20,731 53,692 49,650 134,570 1,468, 361 Aug. 13 52,877 590,238 73,490 141,765 81,432 56,617 168,878 37,930 20,751 52,151 49, 228 135,120 1,460,477 Aug. 20 59,530 606,860 73,776 146,354 82,186 58,369 180,822 38,800 20,933 53,520 50,130 137,279 1,508,559 Loans secured by Government war obligations, including rediscounts with Federal Reserve Bank: July 23 52,289 471,919 74,746 32,940 28,443 109,723 35,376 16,499 26,517 10,207 33,249 981,714 July 30 52,509 478,315 89,805 75,376 32,433 28,368 101,810 34,983 16,765 25,656 9,975 35,977 981,972 Aug. 6 51,593 472,975 89,444 75,294 32,050 28,966 101,418 33,593 16,760 25,873 9,995 35,198 973,159 Aug. 13 51,912 461,254 88,414 75,981 32,069 28,674 104,461 33,534 16,808 26,842 10,099 33,911 963,959 Aug. 20 49,092 469,132 88,123 75,513 31,866 28,509 97,351 32,836 16,474 27,197 9,935 33,327 959,355 Loans secured by stocks and bonds, other than United States securities: July 23 186,993 !1,300,528 200,772 329,606 106,439 60,951 458,08.1 122,563 29,425 79,948 39,233 145,259 3,059,798 July30 194,430 1,284,542 203,814 326,700 107,443 60,610 461,995 127,175 30,583 79,664 38,729 144,634 3,060,319 Aug.6 "... 183,663 1,246,203 201,617 329,823 107,318 60,560 458,343 126,642 30,918 80,198 39,237 146,511 3,011.063 Aug. 13 180,831 ,' 1,240,312405,039 324,302 107,267 60,315 456,533 125,744 30,428 79,734 38,782 148,300 2,997,589 Aug. 20 185,047 jl,240,843 212,127 323,263 106,931 60,231 458,438 126,819 30,380 80,050 38,902 142,690 3,005,721 All other loans and investments, including rediscounts with Federal Reserve Bank: July 23 785,961 4,003,-241 568,550 936,021 392,844 420,057 1,768,490 414,373 283,452 509,638 249,995 996,415 11,329,037 July 30 785,210 14,005,139 571,493 943,058 392,551 423,755 1,766,344 408,965 i285,971 511,596 252,736 991,124 11,337,942 Aug.6 791,627 14,021,071 580,620 952,989 393,321 417,193 1,765,365 411,289 |284,154 512,983 254,137 975,468 11,360,217 Aug. 13 799,137 14,066,381 589,761 951,549 390,966 409,635 1,774,288 410,891 279,296 512,679 253,922 968,361 11,406,866 Aug. 20 799,538 14,035,214 596,597 952,680 393,093 426,085 1,772,547 413,781 279,369 514,704 253,383 971,914 11,408,905 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

SEPTEMBER, 1920. FEDERAL RESERVE BULLETIN. 997 Principal resources and liabilities of member banks in leading cities, including member banks located in Federal Reserve Bank cities and in Federal Reserve branch cities as at close of business on Fridays, from July 23 to Aug. 20, 1920—Contd. 1. ALL REPORTING MEMBER BANKS—Continued. [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. Chicago. Lo S u t. i s. M ap i o n l n i e s. - K C a i n ty sa . s Dallas.San Fran- Total. Total loans and investments, including rediscounts with Federal Reserve Bank: July 23 1,082,137 6,410,779 935,148 1,485,109 613,859 564,859 519,240 610,586 350,682 670,843 1348,631 1,308,859 16,900,731 July 30 1,086,987 6,383,663 939,948 1,487,919 614,190 569,682 508,063 609,394 354,191 670,784 351,244 1,307,207 16,883,272 Aug. 6 1,080,204 6,333,624 945,538 1,500,277 614,117 563,102 496,530 609,333 352,563 672,746 j353,019 1,291,747 16,812,800 Aug. 13 ll, 084,757 6,358,187 956,704 1,493,597 611,734 555,241 504,160 608,099 347,283 671,406 352,031 1,285,692 16,828,891 Aug. 20 11,093,207 6,352,049 970,623 1,497,810 614,076 573,194 509,158 612,236 347,156 675,471 352,350 1,285,210 16,882,540 Reserve balances with Federal Reserve Bank: July23 85,622 655,454 69,250 99,994 36,284 32,298 191,670 41,196 21,842 47,618 25,133 81,660 1,388,021 July 30 83,029 647,267 66,331 100,035 35,387 30,988 189,558 41,555 21,328 44,044 24,570 84,567 1,368,659 Aug. 6 80,845 657,713 69,446 100,846 37,712 32,181 187,994 38,455 20,923 44,338 24,476 79,877 1,374,806 Aug. 13 83,653 665,957 69,325 101,396 35,654 31,215 196,230 41,138 17,431 42,401 24,611 83,220 1,392,231 Aug. 20 79,942 647,564 65,996 100,327 37,102 31,395 186,162 42,213 20,393 44,811 24,647 81,949 1,362,501 Cash in vault: July23 23,973 118,478 16,343 33,879 16,952 12,871 65,057 9,408 10,479 14,894 10,529 28,024 360,887 JulySO 22,406 115,403 15,741 32,789 16,546 13,205 65.632 9,095 9,180 14,919 11,900 27,933 354,749 Aug. 6 23,876 119,007 15,779 32,729 16,505 13,167 66;097 9,578 9,528 14,246 11,982 27,685 360,179 Aug. 13 23,567 115,456 16,921 30,924 16,229 12,947 65,095 9,390 9.317 14,177 11,831 28,652 354,506 Aug. 20 24,292 110,851 16,920 32,460 16,027 13,278 66,190 9,312 9,236 14,342 11,438 27,712 352,058 Net demand deposits on which reserve is computed: July23 835,041 5,165,557 675,638 914,964 343,827 265,752 1,416,365 319,459 213,172 416,012 224,770 636,544 11,427,101 July 30 832,429 5,170,254 666,861 918,246 342,066 263,534 1,412,934 318,248 1209,915 412,461 219,866 632,024 11,398,838 Aug.6 824,478 5,096,475 683,699 914,096 343,554 263,330 1,399,127 318,020 210,097 408,675 1223,014 627,179 11,311,744 Aug. 13 837,274 5,078,627 688,348 914,849 343,807 266,121 1,423,424 330,212 213,065 430,113 !228,156 637,789 11,391,785 Aug. 20 817,044 5,025,971 690,632 921,699 338.078 264,672 1,387,947 322,082 205,386 425,163 225,091 632,157 11,255,922 Time deposits: July 23 140,044 424,107 33,453 363,317 106,739 150,641 625,004 124,118 63,956 109,281 54,339 520,439 2,715,438 July 30 140,322 426,606 33,290 364,319 106,704 150,582 624,945 124,364 64,102 96,631 54,161 519,826 2,705,852 Aug.6 140.421 429,595 33,514 365,892 112,770 150,859 627,257 124,764 63,846 96,940 54,245 521,521 2,721,624 Aug. 13 140,940 435,537 36,966 367,892 107.079 151,276 627,814 124,767 63,906 96,641 54,635 520,029 2,727,482 Aug.20 140,909 435,650 36,993 367,292 107,401 150,324 625,901 124,263 64,081 97,639 54,968 518,407 2,723,828 Government deposits: July 23 8,204 84,466 9,222 7,433 1,727 12,135 3,461 138 5,962 461 142,276 July 30 6,646 68, 424 7,462 5,952 820 1,501 9,798 2,747 245 4,718 371 6,603 115,287 Aug.6 4,247 43,704 4,769 4,011 442 1,039 6,262 1,750 157 3,020 j 235 4,510 74,146 Aug. 13 3,800 39,319 4,291 3,624 583 724 5,646 1,564 141 2,718 216 4,107 66,733 Aug. 20 12,931 71,976 9,326 12,160 2,600 3,065 14,703 3,609 689 4,940 1,416 7,859 145,274 Bills payable with Federal Reserve Bank: Secured by United States war obligations- July 23 19,631 348,217 55,748 30,729 33,810 32,362 99,223 20,896 4,685 26,329 16,851 24,921 713,402 July 30 22, 619 336,930 59,008 26,293 35,142 32,602 98,588 21,964 5,471 26,975 17,156 26,064 708,812 Aug.6 24,946 368, 783 56,376 25,935 36,540 33,308 98,995 21,689 i4,862 30,447 17,523 24,965 744,369 Aug. 13 23,476 385,707 56,193 35,210 37,090 32,572 92, 044 20,551 4,737 24,794 17,555 27,787 757,716 Aug. 20 33,452 367,980 53,464 33,074 36,863 34,146 97,992 22,164 ,5,821 25,880 18,077 27,273 756,186 All other- July 23 36 150 869 2,388 I 450 85 185 4,163 July 30 36 495 450 85 85 2,122 Aug.6 36 536 85 360 1,197 Aug. 13 36 641 450 85 | 15 235 1,462 Aug. 20 142 450 85 85 1,848 Bills rediscounted with Federal Reserve Bank: Secured by United States war obligations- July 23 21,019 125,745 47,308 12,343 4,937 6,801 16,635 10,940 2,157 6,248 1,885 2,515 258,533 July 30 20,130 126,074 46,765 12,733 4,436 6,761 15,876 10,612 2,506 6,101 1,655 3,214 256,863 Aug.6 18,504 133,974 44, 863 10,146 4,264 7,134 15,335 9,321 2,623 6,212 1,794 4,276 258,446 Aug. 13 19,437 133,977 44,150 12,306 3,759 7,119 18,187 8,739 2,073 6,094 1,778 2,803 260,422 Aug.20 17,936 140,523 46,784 12,154 3,906 7,349 17,799 1,821 6,556 1,522 2,760 268,399 All other— July23 45,789 269,421 31,647 47,160 37,510 52,650 241,988 43,900 59,267 20,146 58,865 977,332 July 30 37,918 283,117 34,281 42,834 38,355 56,105 245,733 70^949 ' 47,80161,675 23,036 63,433 1,005,237 Aug. 6 37,781 282,754 32,563 49,431 38,164 60,990 242,511 74,737 ! 48,78461,219 23,575 65,120 1,017,629 Aug. 13 40,272 326,741 37,620 45,476 37,046 58,331 238,318 65,871 i 42,300 53,670 22,587 62,182 1,030,414 Aug.20 46,463 324,565 36,911 43,063 37,616 63,228 240,698 75,741 ! 48,98157,911 22,314 62,572 1,060,063 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

998 FEDERAL RESERVE BULLETIN. SEPTEMBER, 1920. Principal resources and liabilities of member banks in leading cities, including member banks located in Federal Reserve Bank cities and in Federal Reserve branch cities as at close of business on Fridays, from July 23 to Aug. 20,1920—Continued. 2. MEMBER BANKS IN FEDERAL RESERVE BANK CITIES. [In thousands of dollars.] B to o n s . - Y N o e r w k. P p d h h e i i l l a - a . - C la le n v d e . - m R o ic n h d - . .tlanta. Chicago. Lo S u t. is. M ap i o n l n i e s. - K C a i n t s y a . s Dallas. F S r a a n n- Total. Number of reporting banks: July 23 - 278 July 30 278 Aug. 6 279 Aug. 13 282 Aug. 20 281 United States bonds to secure circulation: July 23 2,281 36,961 7,337 3,664 2,782 3,100 1,438 10,295 2.791 4,958 4,560 16,550 96,717 July 30 2,281 36,961 7,337 3,664 2,780 3,100 1,438 10,294 2; 791 4,996 4,560 16,550 96,752 Aug. 6 2,281 36,886 7,337 3,664 2,780 3,100 1,438 10,294 2,791 4,996 4,560 16,550 96,677 Aug. 13 2,281 37,026 7,337 3,664 2,780 3,100 1,438 10,294 2,791 4,996 4,560 16,550 96,817 Aug. 20 2,281 37,053 7,337 3,664 2,780 3,100 1,438 10,294 2,791 4,996 4,560 16,650 96,944 Other United States bonds, including Liberty bonds: July 23 5,165 218,057 21,740 7,499 4,706 1,651 22,412 4,762 1,934 8,205 5,815 38,457 340,403 July 30 5,162 221,852 21,856 7,501 4,683 1,654 21,254 4,067 1,730 8,145 6,019 38,811 342,734 Aug. 6 5,135 226,849 22,234 7,481 4,683 1,536 20,984 4,948 1,878 8,155 6,019 38,813 348,71& Aug. 13 5,11G 221,530 23,105 7,575 4,683 1,672 19,143 4,956 1,732 6,519 6,078 39,308 341,417 Aug. 20 5,110 220,898 21,634 7,566 4,683 1,545 19,907 4,879 1,720 8,559 6,095 37,152 339,748 United States Victory notes: July 23 328 73,680 6,428 2,200 195 12,489 520 181 2,468 1,014 3,630 103,319 July 30 401 73,381 6,397 2,240 195 186 12,355 548 181 2,450 812 4,102 103,248 Aug. 6 341 65,686 6,395 2,231 195 187 11,642 532 101 2,352 812 4,048 94,522 Aug. 13 324 71,684 6,825 2,300 176 187 11,629 498 181 2,113 810 4,269 100,996 Aug. 20 317 70,949 6,349 2,248 193 200 11,336 547 206 2,400 817 4,624 100,186 United States certificates of indebtedness: July 23 14,135 235,130 24,505 4,555 1,245 1,196 24,142 4,376 655 5,949 1,143 12,219 329,250 July 30 13,032 212,480 23,239 4,596 1,186 1,221 23,728 5,158 640 5,116 1,691 13,109 305,19& Aug. 6 11,671 193,101 21,869 4,343 1,181 1,221 22,510 3,906 487 4,620 1,616 12,869 279,394 Aug. 13 11,196 188,547 20,301 4,168 1,147 1,272 21,644 3,790 507 4,597 1,589 12,708 271,466 Aug. 20 14,631 205,276 22,429 4,644 1,006 1,221 22,637 4,319 596 3,647 2,332 14,600 297,338 Total United States securities owned: J._u-l.,y 2- 3 - 21,909 563,828 60,010 17,918 8,928 6,133 60,481 19,953 5,561 21,580 12,532 70,856 July 30 | 20,876 544,674 58,829 18,001 8,844 6,161 58,775 20,067 5,342 20,707 13,082 72,572 847,930 Aug. 6 1 19,428 522,522 57,835 17,719 8,839 6,044 56,574 19,680 5,257 20,123 13,007 72,280 819,308 Aug. 13 ' | 18,917 518,787 57,568 17,707 8,786 6,231 53,854 19,538 5,211 18,225 13,037 72,835 810,696 Aug.20 22,339 534,176 57,749 18,122 8,662 6,066 55,318 20,039 5,313 19,602 13,804 73,026 834,216 Loans secured by Government war obligations, including rediscounts with Federal Reserve Bank: July 23 43,930 439,555 85,251 20,887 9,527 6,281 72,720 21,967 9,264 11,562 2,709 16,477 740,130 July 30 43,991 445,829 85,059 20,637 9,520 5,695 66,144 21,740 9,402 11,507 2,830 18,190 740,544 Aug.6 42,891 442,224 85,194 20,657 9,214 5,525 65,866 20,493 9,038 11,590 2,646 17,812 733,150 Aug. 13 43,562 430,989 84,220 20,806 9,135 5,147 67,695 20,698 9,071 12,248 2,578 16,197 722,346 Aug.20 40,793 439,493 84,077 20,543 9,013 5,155 64,124 19,803 9,165 12,156 2,593 15,617 722,532 Loans secured by stocks and bonds, other than United States securities: July 23 141,971 1,146,701 182,075 117,043 14,813 6,428 341,531 84,543 12,729 34,021 70,285 2,162,12& July 30 1149,677 1,130,519 185,091 112,215 14,976 6,462 346,209 88,915 13,050 34,151 9,870 68,429 2,159,564 Aug. 6 138,511 ! 1,094,253183,002 115,276 15,195 6,533 342,036 88,751 13,195 34,586 9,788 70,112 2,111,238 Aug. 13 135,624 11,085,346 186,500 108,990 15,292 6,572 339,807 87,598 13,134 34,468 9,762 69,756 2,092,849 Aug. 20 140,583 1,087,910 193,254 109,035 15,181 6,571 341.082 88.691 12,820 34,405 9,657 69,109 2,108,298 All other loans and investments, including rediscounts with Federal Reserve Bank: July 23 568,544 13,534,016 497,745 297,415 75,426 74,021 1,054,645 287,308 136,802 178,896 58,724 498,726 7,262,268 July 30. 563,492 3,532,276 500,893 301,877 75,661 74,797 1,055,641 280,134 137,571 179,216 59,954 491,349 7,252,861 Aug. 6 |570,450 3,548,801 510,716 302,068 75,180 72,621 1,053,954 282,266 137,237 181,338 62,270 476,131 7,273,032 Aug. 13 577,146 3,582,874 520,899 302,671 74,007 71,004 1,066,044 281,360 135,245 181,651 62,567 468,920 7,324,388 Aug.20 576,658 3,559,884 527,310 305,376 75,280 73,354 1,067,727 283,807 132,544 182,529 63,687 476,273 7,324,429 Total loans and investments, including rediscounts with Federal Reserve Bank: July 23 776,354 5,684,100 825,081 453,263 108,694 92,863 1,529,377 413,771 164,356 246,059 83,951 656,344 11,034,213 July 30 1778,036 5,653,298 829,872 452,730 109,001 93,115 1,526,769 410,856 165,365 245,581 85,736 650,540 11,000,899 Aug.6 1771,280 5,607,800 836,747 455,720 108,428 90,723 1,518,430 411,190 164,727 247,637 87,711 636,335 10,936,728 Aug. 13 J775,249 5,617,996 849,187 450,174 107,220 88,954 1,527,400 409,194 162,661 246,592 87,944 627,708 10,950,279 Aug. 20 [780,373 5,621,463 862,390 453,076 108,136 91,146 1,528,251 412,340 159,842 248,692 89,741 634,025 10,989,475 Reserve balances with Federal Reserve Bank: July 23 1 68,631 610,846 61,750 25,461 5,718 6,153 136,552 31,216 10,334 16,115 6,612 38,178 1,017,566 July 30 i 67,244 606,317 59,267 28,252 5,391 5,904 135,921 31,179 9,766 12,754 6,921 42,304 1,011,220 Aug. 6. 64,140 615,224 62,971 27,386 6,379 5,018 133,079 28,501 9,765 14,000 7,100 36,583 1,010,152 Aug. 13. 66,615 624,805 61,900 29,250 5,510 5,935 138,356 30,316 6,059 12,784 7, US 38,717 1,027,395 Aug. 20. 64,446 600,719 60,198 27,530 6,172 5,925 132,179 31,225 9,939 14.777 G,9i9 38,165 998,194 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

SEPTEMBER, 1920. FEDERAL RESERVE BULLETIN. 999 Principal resources and liabilities of member banks in leading cities, including member banks located in Federal Reserve Bank cities and in Federal Reserve branch cities as at close of business on Fridays, from July 23 to Aug. 20,1920—Continued. 2. MEMBER BANKS IN FEDERAL RESERVE BANK CITIES—Continued. [In thousands of dollars.] B to o n s- . Y N o e r w k. P p d h h e i l i l - a a . - C la le n v d e . - m R o ic n h d - . Atlanta. Chicago. Lo S u t. is. M ap i o n l n is e . - K C a i n t s y a . s Dallas. F c S i r s a a c n n o - . Total. Cash in vault: July 23 13,940 104,555 13,061 8,609 1,651 2,107 36,185 4,900 3,405 3,778 1,745 11,119 205,055 July 30 13,349 102,579 12,317 8,209 1,684 2,369 36,256 4,797 2,922 4,084 2,006 10,578 201,150 Aug. 6 13,893 104,913 12,462 8,909 1,699 2,175 36,963 5,016 2,763 3,873 1,942 10,390 204,998 Aug. 13 13,860 102,250 13,517 8,740 1,657 2,374 36,099 5,003 2,981 3,668 2,045 10,250 202,444 Aug. 20 14,493 97,552 12,976 8,743 1,475 2,328 36,474 4,808 2,871 3,750 1,937 10,335 197,742 Net demand deposits on which reserve is computed: July 23 644,487 4,653,613 586,992 227,347 54,223 41,870 974,303 225, 111 91,580 144,320 61,892 299,796 8,005,534 July 30 644,430 4,664,731 577,891 229,968 53,308 42,194 972,089 225,307 91,234 140,940 62,370 301,825 8,006,287 Aug. 6 636,181 4,603,319 595,218 230,364 50,781 42,156 957,209 222,491 91', 156140,566 64,484 299,555 7,933,480 Aug. 13 646,804 4,578.540 599,009 231,233 51,859 44,832 969,349 232,254 90,360 151,005 67,155 302,322 7 964 722 Aug. 20 630,173 4,527^ 824602,906 229,538 51,971 42,530 945.639 225,760 87,892 150,462 65,333 301,726 l\ 86lj 754 Time deposits: July 23 43,783 301,623 23,487 171,358 21,304 21,342 282.640 73,936 23,138 19,137 5,048 245,674 1,232,470 July 30 43,478 301,766 23,287 171,552 21,327 21,311 282,679 74,097 22,967 11,647 5,094 245,368 1,224,573 Aug. 6 42,568 300,362 23,504 172,430 21,390 21,307 283,811 74,290 22,921 11,625 5,121 245,933 1,225,262 Aug. 13 42,819 307,727 26,925 173,714 21,371 21,163 285,056 74,452 22,903 11,605 5,151 244,996 1,237,882 Aug. 20 42,930 305,843 26,934 173,725 21,393 21,100 283,332 74,141 23,144 11,597 5,204 242,468 1,231,811 Government deposits: July 23 6,057 81,009 9,192 952 356 64 7,976 3,258 97 5,164 301 7,223 121,649 July 30 4,906 65,624 7,438 797 310 51 6,435 2,583 243 4,075 242 5,929 98,633 Aug. 6 3,141 41,896 4,754 501 147 32 4,119 1,644 156 2,607 154 4,120 63,271 Aug. 13 2,813 37,707 4,278 455 186 29 3,713 1,470 140 2,345 138 3,707 56,981 Aug. 20 6,891 68,464 9,093 2,480 323 31 7,566 3,140 4,397 6,248 110,012 Bills payable with Federal Reserve Bank: Secured by United States war obligations- July 23 18,134 311,606 51,025 6,704 4,769 1,697 37,612 14,842 393 15,104 2,703 12,551 477,140 July 30 20,877 300,999 54,585 5,526 5,878 1,747 36,687 15,320 343 14,538 2,753 13,720 472,973 Aug. 6 22,154 331,149 52,915 5,265 7,274 1,847 33,628 14,373 271 17,441 3,178 12,833 502,328 Aug. 13 20,929 346,848 52,083 6,989 7,252 1,797 31,819 13,189 12,487 3,454 14,830 511,973 Aug. 20 30,815 328,951 50,160 5,285 7,725 1,797 34,034 14,833 13,170 3,873 14,180 505,203 AH other- July 23 150 150 July 30 150 150 Aug. 6 150 150 Aug. 13 Aug. 20 Bills rediscounted with Federal Reserve Bank: Secured by United States war obligations- July 23 20,412 120,263 46,615 4,003 226 1,346 9,097 5,755 1,544 3,653 473 1,291 214,678 July 30 19,523 120,890 46,072 3,821 193 1,201 8,684 5,874 1,702 3,573 602 1,764 213,899 Aug. 6 17,904 128,915 44,372 3,969 1,035 7,975 4,588 1,503 3,662 483 3,171 217,675 Aug. 13 18,811 129,870 43,661 3,739 843 9,605 4,253 1,372 3,708 422 1,780 218,110 Aug. 20 , 17,323 136,356 46,296 3,872 773 9,209 4,649 1,363 3,744 416 1,546 225,561 All other- July 23 44,950 252,218 29,925 35,526 10,519 169,092 53,913 32,632 29,891 4,995 28,516 702,143 July 30 36,956 261,925 32,278 34,127 9,920 11,160 174,325 53,027 32,576 29,567 6,359 33,254 715,474 Aug. 6 ' , 36,218 262,421 30,910 34,350 11,364 11,625 171,327 58,978 32,853 29,211 6,675 33,532 719,464 Aug. 13 38,772 304,175 35,606 35,064 10,245 10,858 172,798 51,417 28,458 25,087 6,012 31,398 749,890 Aug. 20 45,808 301,571 34,997 33,052 10,335 12,407 180,037 59,391 32,353 26,951 6,457 32,161 775,520 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1000 FEDERAL RESERVE BULLETIN. SEPTEMBER, 1920. Principal resources and liabilities of member banks in leading cities, including member banks located in Federal Reserve Bank cities and in Federal Reserve branch cities as at close of business on Fridays,from July 23 to Aug. 20, H920—Contd. 3. MEMBER BANKS IN FEDERAL RESERVE BRANCH CITIES. [In thousands of dollars.] Di Y N st o e r r w i k ct.1 D C i l s a l t e r n v i d c e t - .* D m i R s o i t c r n i h 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 D St i . s t L r o ic u t i , s e D K is C a t n i r t i s y c a t s .? s 8 i D Fr i a s S n t a r c i n c is t c .* o Total. Number of reporting banks: July 23 10 40 19 24 12 18 19 12 44 198 July 30 10 40 19 24 12 18 19 12 44 198 Aug. 6 10 40 19 24 12 18 19 12 44 198 Aug. 13 10 40 19 24 12 18 19 12 44 198 Aug.20 10 40 19 24 12 18 19 13 44 199 United States bonds to secure circulation: July 23 1,599 25,117 5,608 6,930 1,905 5,280 4,387 7,108 13,185 71,119 July 30 1,599 25,117 5,608 7,005 1,905 5,280 4,387 7,108 13,185 71,194 Aug. 6 1,599 25,117 5,608 7,005 1,905 5,280 4,387 7,108 13,185 71,194 Aug. 13 1,599 25,156 5,608 6,930 1,905 5,280 4,387 7,108 13,185 71,158 Aug. 20 1,599 25;156 5,608 6,930 1,905 5,280 4,387 7,108 13,185 71,158 Other United States bonds, including Liberty bonds: July'23 11,439 40,247 9,161 22,254 17,528 7,651 5,830 7,228 21,399 142,737 July 30 11,393 39,981 9,242 22,870 17,571 7,674 5,555 7,248 21,341 142,875 Aug. 6 11,510 40,844 9,334 22,538 17.560 7,643 5,883 7,193 21,552 144,057 Aug. 13 11,550 40,390 9,269 22,375 17.561 7,814 6,291 7,194 21,730 144,174 Aug. 20 11,577 40,587 9,273 22,622 17,511 6,108 7,270 22,118 144,952 United States Victory notes: July 23 1,886 13,957 2,846 2,917 18,563 2,028 586 1,200 7,565 51,548 July 30 1,848 14.105 2.837 2,804 18,523 2,043 620 1,195 7,381 51,356 Aug. 6 1,829 14,187 2,837 2,886 18,520 2,020 636 1,190 7,400 51,505 Aug. 13 1,828 14,125 2,836 2,916 18,515 2,079 657 1,188 7,365 51,509 Aug.20 1,839 14,109 2,837 2,916 18,431 2,077 683 1,188 7,424 51,504 United States certificates of indebtedness: July 23 12,546 15,034 2,124 6,446 27,691 1,220 3,677 1,679 12,428 82,845 July 30 12,279 13,587 2,117 7,132 27,133 1,110 3,677 1,679 12,256 80,970 Aug. 6 12,184 12,573 1,856 6,975 23,295 1,090 3,677 1,679 11,855 75,184 Aug. 13 12,156 12,704 1,796 7,230 23,505 1,116 3,671 1,679 12,006 75,863 Aug. 20 13,036 16,249 1,109 8; 840 33,030 1,378 3,695 1,726 13,028 92,091 Total United States securities owned: July 23 27,470 94,355 19,739 38,547 65,687 16,179 14,480 17,215 54,577 348,249 July 30 27,119 92,790 19,804 39,811 65,132 16,107 14,239 17,230 54,163 346,395 Aug. 6 27,122 92,721 19,635 39,404 61,280 16,033 14,583 17,170 53.992 341,940 Aug. 13 27,133 92,375 19,509 39,451 61,486 16,289 15,006 17,169 54,286 342.704 Aug.20 28,051 96,101 18,827 41,308 70,877 16,621 14,873 17,292 55,755 359.705 Loans secured by Government war obligations, including rediscounts with Federal Reserve Bank: July 23 12,221 41,844 9,133 16,565 19,563 11,972 9,058 2,926 15,930 139,212 July 30 13,517 43,342 8,911 17,386 18,518 11,583 8,642 2,918 16,964 141,781 Aug. 6 11,888 42,305 8,909 18,008 18,817 11,445 8,773 2,879 16,176 •139,200 Aug. 13 11,575 43,931 8,957 17,822 20,530 11,195 8,887 2 899 16,558 142,354 Aug. 20 11,253 43,688 9,128 18,075 17,052 11,400 9,108 2^963 16,546 139,213 Loans secured by stocks and bonds, other than United States securities: July 23 52,518 152,756 32,631 40,925 57,934 34,939 22,313 16,539 68,941 479,496 July 30 51, 793 155,123 32,328 40,572 58,229 35,420 21,858 16,392 70,137 481,852 Aug. 6 52,794 154,474 32,142 40,377 59,999 35,047 21,901 16,438 67,522 480,694 Aug. 13 53,335 155,218 32,336 39,581 59,175 35,294 21,296 16,445 70,052 482,732 Aug.20 53,736 154,109 33,466 40,142 59,675 35,271 21,657 16,574 65,035 479,665 All other loans and investments, including rediscounts with Federal Reserve Bank: July 23 181,453 469,067 122,891 259,751 342,823 111,508 159,950 78,747 460,336 2,186,526 July 30 183,821 469.126 123,619 263,789 340,794 113,432 161,656 79,610 462,487 2,198,334 Aug. 6 181, 778 478,202 123,762 259,051 340,210 113,334 162,428 78,248 465,630 2,202,643 Aug. 13 182,415 476,372 123,459 254,566 343,651 113,908 159,142 78,342 463,888 2,195,743 Aug. 20 182,934 475,962 123,431 265,508 339,442 113,841 160,302 77,779 461,434 2,200,633 Total loans and investments, including rediscounts with Federal Reserve Bank: July 23 273,662 758,022 184,394 355,788 486,007 174,598 205,801 115,427 599., 784 3,153,483 July 30 276,250 760,381 184,662 361,558 482,673 176,542 206,395 116,150 603,751 3,168,362 Aug. 6 273,582 767,702 184,448 356,840 480,306 175,859 207,685 114,735 603,320 3,164,477 Aug. 13 274,458 767,896 184,261 351,420 484,842 176,686 204,331 114,855 604,784 3,163,533 Aug.20 275,974 769,860 184,852 365,033 487,046 177,133 205,940 114,608 598,770 3,179,216 Reserve balances with Federal Reserve Bank: July 23 16,839 56,641 13,166 20,299 29,303 9,322 13,981 8,261 40,235 208,047 July 30 15,598 54,698 12,678 19,316 26,860 9,301 13,763 7,943 39,087 199,244 Aug. 6 , 17,444 55,347 13,745 20,071 28,561 9,272 13,952 7,735 39,759 205,886 Aug. 13 15,233 54,429 12,793 19,386 30,432 9,994 12,814 7,740 40,857 203,678 Aug.20 18,249 55,613 13,128 19,258 27,797 9,902 14,066 7,610 40,278 205,901 1 Buffalo. 6 Louisville, Memphis, and Little Rock. 2 Pittsburgh and Cincinnati. 7 Omaha and Denver. 3 Baltimore. 8 El Paso and Houston. * New Orleans, Birmingham, Jacksonville, and Nashville. 9 Spokane, Portland, Salt Lake City, Los Angeles, and Seattle. »Detroit. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

SEPTEMBER, 1920. FEDERAL RESERVE BULLETIN. 1001 Principal resources and liabilities of member banks in leading cities, including member banks located in Federal Reserve Bank cities and in Federal Reserve branch cities as at close of business on Fridays, from July 23 to Aug. 20 1920—Contd. } 3. MEMBER BANKS IN FEDERAL RESERVE BRANCH CITIES—Continued. [In thousands of dollars.] D Y N is o t e r r w i k ct. D C i l s a le t n r v d i e c - t. D m R is i o t c r n h i d c - t. D A i t s l t a r n ic ta t. D C i h s i t c r a i g c o t. S D t. i s L tr o ic u t i . s D K i C a s n t i r t s i y a c s t. D D is a t l r l i a c s t. F D r i a S s n t a c r n i i c sc t. o Total. Cash in vault: July 23 3,558 14,805 5,513 6,970 12,889 3,600 5,256 2,936 15,263 70,790 July 30 3,005 14,506 5,305 7,022 13,528 3,472 5,182 3,305 15,781 71,106 Aug. 6...... 3,432 13,892 5,178 7,016 13,465 3,736 5,148 3,154 15,697 70,718 Aug. 13 3,114 12,878 5,106 6,787 13,526 3,651 5,187 3,283 16,660 70,192 Aug. 20 , 3,223 13,835 4,870 7,256 14,643 3,595 5,042 3,102 15,617 71,183 Net demand deposits on which reserve is computed: July 23 •... 171,103 512,614 113,017 173,057 201,660 83,815 117,574 67,120 305,340 1,745,300 July 30 171,952 514,887 113,552 172,403 202,283 82,679 119,299 64,111 298,931 1,740,097 Aug. 6 166,593 510,160 116,482 170,108 202,676 85,511 117,446 63,364 296,282 1,728,622 Aug. 13 168,593 507,870 113,455 170,699 212,929 87,696 122,282 63,590 303,637 1,750,751 Aug. 20 166,889 517,088 112,215 171,152 202,770 85,221 121,927 65,449 299,681 1,742,392 Time deposits: July 23 54,586 116,702 20,099 90,266 224,230 40,880 54,472 21,967 261,236 884,438 July 30 56,233 116,925 20,501 90,128 224,466 40,975 49,376 21,804 260,835 881,243 Aug. 6 60,619 117,017 26,190 90,313 224,798 41,134 49,666 21,786 261,919 893,442 Aug. 13 60,832 117,604 20,543 90,756 224,149 40,959 49,383 21,973 261,528 887,727 Aug. 20 60,851 116,678 20,615 223,972 40,947 49,710 22,136 261,808 886,584 Government deposits: July 23 1,947 5,699 290 1,635 711 203 676 150 820 12,131 July 30 1,577 4,498 234 1,427 575 164 546 121 644 9,786 Aug. 6 1,026 3,067 118 993 367 106 350 76 390 6,493 Aug. 13 907 2,768 105 682 331 94 316 74 5,660 Aug. 20 1,530 9,098 427 2,905 4,311 293 114 20,215 Bills payable with Federal Reserve Bank: Secured by United States war obligations— July 23 21,585 21,915 9,970 25,616 38,299 5,752 5,670 7,428 11,110 147,345 July 30 20,681 18,110 9,892 25,650 37,421 6,268 6,776 7,333 11,103 143,234 Aug. 6 21,274 18,554 9,775 26,081 40,175 6,844 7,449 6,853 10,890 147,895 Aug. 13 20,397 25,548 10,544 25,451 36,835 6,986 6,754 6,609 11,715 150,839 Aug. 20 21,350 24,806 9,487 26,817 39,817 6,755 6,760 6,909 11,585 154,286 All other- July 23 869 2,388 85 185 3,527 July 30 826 85 85 996 Aug. G 85 360 445 Aug. 13 85 235 320 Aug. 20 85 85 170 Bills rediscounted with Federal Reserve Bank: Secured by United States war obligations- July 23 3,378 6,712 2,406 4,369 4,352 4,847 1,218 556 1,152 28,990 July 30 3,310 7,662 2,090 4,582 3,974 4,403 1,172 593 1,376 29,162 Aug. 6 3,193 4,860 2,103 4,983 4,301 4,411 1,293 615 1,026 26,785 Aug. 13 2,528 7,675 1,902 5,223 5,750 4,166 1,184 596 944 29,968 Aug. 20 2,683 7,617 2,169 5,627 5,965 4,326 1,456 1,135 31,584 All other- July 23 7,768 6,505 14,478 33,029 17,253 14,061 16,990 8,376 25,562 144,022 July 30 8,829 4,067 15,025 34,857 14,836 16,712 17,616 9,293 25,158 146,393 Aug. 6 7,257 10,115 14,009 39,713 16,503 14,709 17,747 9,502 26,548 156,103 Aug. 13 6,940 5,089 14,342 38,922 14,984 13,570 13,755 8,947 25,971 142,520 Aug. 20 8,394 4,465 14,162 42,194 9,341 15,445 15,950 8,249 25,313 143,513 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1002 FEDERAL RESERVE BULLETIN". SEPTEMBER, 1920. IMPORTS AND EXPORTS OF GOLD AND SILVER. Gold imports into and exports from the United States, distributed by countries. Imports. Exports. - J 1 D e u 1 0 n u 9 l d y d r 2 i i a 0 2 n n y . 0 g g s , J 1 D e u 1 n 1 u l 9 d v d r 2 i i a n 0 n 3 y g . 1 g s , o m D f 1 u 9 o J r 2 n u i 0 t n l h . y g , A 1 D e 0 n u 1 u 9 d g d r 2 i . i a 0 n n 1 y . g g 0 s , J A a 1 u F n 9 s r . o 2 . 1 0 m 1 . t 0 o , J A a F u 1 n r 9 g . o 1 . 1 m 9 1 . 0 to , J 1 D e u 0 n 1 u l 9 d v d r 2 i i a 0 n 2 n y . g 0 g s , J 1 e D u 1 n 1 u l 9 d v d r 2 i i a n 0 3 n y g . 1 g s , o m D f 1 9 u o J 2 r n u i 0 t n l h . y g , A 1 D e 0 n 1 u u 9 d g d r 2 i . i a 0 n n 1 y . g g 0 s , J A a F 1 u n 9 r s . o 2 . 1 m 0 1 . 0 to , J A a F u 1 n r 9 g . o 1 . 1 m 9 1 . t 0 o , Belgium $335,906 Denmark $2,666 France $33,139 $49,724 $676,505 1,420,584 1,603,423 Germany. $10,000 Greece 10,000 10,000 120,000 Iceland 912 Italy ! 40,107 241,263 60,000 Netherlands 1,161,428 15,000 Norway 3,324 Portugal 25,364 Spain 26,920,000 Sweden 661 Switzerland.. 4,937 1,100 United Kingdom: England $7,066,750 352,916 9,721,3666,664,189 76,783,923 $13,329 13,235 1,192,805 Scotland 45 45 Total Europe. 7,066,750 396,055 9,781,0907,340,739 79,895,618 13,329 266,510 29,794,555 British Honduras. . 20 10,000 Canada 12,5201,225,805 1,274,863 37,240 28,733,86332,643,234 $72,379 $265,180 $425,231 $65,869 3,233,825 3,018,637 Costa Rica 8,131 48,650 42,475 428,160 463,375 Guatemala 9,353 14,872 Honduras. 12,234 13,229 30,569 174,632 20i,7li 19,000 21,300 Nicaragua 35,006 66,615 64,800 799,316 884,718 10,000 Panama . 40,355 40,355 2,662 84,325 2,441 300,000 Salvador 7,896 11,617 160,104 489,485 20,000 1,000 Mexico 80,419 133,898 376,875 125,286 2,675,281 3,093,700 136,367 190,785 565,862 223,554 15,948,747 5,833,878 Newfoundland 61 Cuba. . 853 853 5,680 3,100 50,000 100,000 150,000 275,000 British West Indies. 87,249 18,838 7,940 Virgin Islands of U.S 10,000 Dominican Republic 10 000 39,000 10,000 Dutch West Indies. 16,566 2,890 18,890 147,930 Total North America 117,0701,451,041 1,857,579 314,649 33,311,43237,800,663 258,746 555,965 1,151,093 289,423 19,545,572 9,212,755 • Argentina.... 18,974 30 073 76,692 68,144 89,995,000 32,960,000 Bolivia 660 1,290 46 6,878 1 069 2,500,000 Brazil 24,585 18,363 280,000 50,000 Chile 997 346 1,343 3,245 329,868 156,280 400,000 100,000 Colombia 477,707 269,131 816,039 370,165 2,602,315 536,448 700,000 4,483,620 Ecuador 45,440 400,632 379,911 26,000 156,000 British Guiana 4,331 71,940 79,694 5,005 Dutch Guiana 2,387 2,387 2,387 15,272 6,300 6,300 6,300 19,795 Peru 17,330'"33,865 63,628 15,154 581,715 564,038 2,893,369 Uruguay 12,850,000 7,405,000 Venezuela 17,996 19,027 27,047 314,839 150,644 334,000 9,978,720 Total South America 535,391 304,002 983,558 415,657 4,411,851 1,969,863 6,300 6,300 26,000 104,721,300 60,395,509 China 1,260 16,286,750 9,628,446 British India 756,666 6,110,088 2,442,047 Straits Settlements. 6,683,454 200,000 Dutch East Indies.. 102,919 201,287 2,589,066 2,524,455 500,000 20,000 12,065,105 2,147,000 French East Indies. 2,100,000 2,100,000 2 100 000 Hongkong 6,576,087 30,191,91010,000,000 399,405 146,450 1,981,675 327,220 25,998,577 15,038,110 Japan 2,200,0006,365,24416,133,7157,017,283 31,913,185 36,040,116 Russia in Asia 23,000 Total Asia.... ----- 102,919 6,777,374 32, 782,23612,524,4554,699,4056,511,69420,715,3908,114,503 101,157,159 65,518,719 New Zealand 64,822 172,262 1,101,276 Philippine Islands.. '"71," 002 171,644 557,219 "'366,292 2,500 British South Africa 8,150 British West Africa. 28,038 Portuguese Africa.. 74,251 74,251 280,358 422,413 Total all countries 7,784,0332,399,27019,817,7588,071,0451152,339,99053,105,1654,964,4517,067,65921,872,7828,429,9262 225,718,579164,924,038 1 Includes: Ore and base bullion, $11,713,000; United States mint or assay office bars, $3,846,000; bullion refined, $77,212,000; United States coin, $12,864,000; foreign coin, $46,705,000. 2 Includes: Domestic exports—Ore and base bullion, $10,000; United States mint or assay office bars. $18,286,000; bullion refined $1 009 000* com, $205,980,000; foreign coin, $434,000. ' ' ' ' Excess of gold exports over imports since Jan. 1,1920, $73,379,000. Excess of gold imports over exports since Aug. 1,1914, $706,376 000 Excess of gold exports over imports since June 10, 1919, $394,643,000. & , , * , ,• *«*» Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

SEPTEMBER, 1920 FEDERAL RESERVE BULLETIN. 1003 Silver imports into and exports from the United States, distributed by countries. Imports. Exports. J 1 D e u 0 n 1 u l 9 d y d r 2 i i a 0 2 n n y . 0 g g s , J 1 D e u 1 n 1 u l 9 d y d r 2 i i a 0 3 n n y . 1 g g s , m D 1 o J u 9 u n r 2 t l i h 0 y n . , g of A 1 D e 0 u n 1 u 9 g d d r 2 . i i a 0 n n 1 y . g g 0 s , J A a F 1 u n 9 r s o . . 2 m 0 1 1 . 0 to , J A a F u 1 n 9 g r . 1 o . 1 9 m 1 . t 0 o , J 1 D e u 0 n 1 u l 9 d y d r 2 i i a 0 2 n n y . 0 g g s , J 1 D e u 1 n 1 u l 9 d y d r 2 i i a 0 3 n n y . 1 g g s , m D 1 o J u 9 u n r 2 t l i h 0 y n . , g of A 1 e D 0 u n 1 u 9 g d d r 2 . i i a 0 n n 1 . y g g 0 s , J A a u 1 F n 9 ? r . . 2 o 1 m 0 1 . 0 to , J A a F u 1 n 9 g r . 1 o . 1 9 m 1 . t 0 o , Denmark $587,897 France $12,531 $3,345 $80,836 $11,100 $32,920 6,418,882 Italy 24,026 Netherlands . 30,820 Norway 14,453 1,109,956 Portugal 7,978 1,950 Spain 228 Sweden $12,700 $12,700 54,960 101,131 Switzerland 172,203 United Kingdom- England 1,350 787,917 34,895 683,622 $973,849 1,873,851 3,966,402 12,350,298 Total Europe. 12,531 4,695 946,030 45,995 696,322 973,849 1,886.551 4,054,282 20,742,545 > \ J British Honduras 63,367 255,637 Canada $103,144 $117,190 247,141 85,093 2,400,703 4,881,770 67,893 316,694 428,930 $24,798! 6.033.598 2,605,316 Costa Rica 1 094 4,476 3,430 51,718 108,368 Guatemala 1,69« 1,729 21,734 1,000 1,000 4,500 4,400 Honduras 700 114,408 127,825 29,262 1,684,501 1,538,135 371,505 85,900 Nicaragua 322 18,747 11,581 490,724 564,759 3 666 3,000 Panama 5,149 5,149 262 37,326 89,273 542,000 204,250 Salvador 22,800 45,367 49,797 3,637,724 248,305 Mexico 438,901 884,417 2,789,261 729,52938,289,06535,180,497 60,130 21,909 177,037 81,441 2,597,916 888,969 Newfoundland 11 British West Indies. 6,949 2,296 400 18,080 10,328 €uba... 16,879 16,879 62,550 52,189 19,387 817 939,953 161 Virgin Islands of U. S 25,000 Dominican Republic. 84,800 34,500 231,500 105,000 Dutch West Indies. 1,200 French West Indies. 20 Haiti 5,666 5,000 9,000 Total North America 568,659 1,138,043 3,256,574 908,94546,832,38142,921,240 133,023 339,603 634,354 141,95610,776,025 3,904,324 Argentina 2 504 3 730 23,380 41,203 9,187 11,492 743 Bolivia 10,992 158,235 231,443 13,912 922,503 108,487 Brazil 293 1,527 2,333 852 Chile 83,308 83,404 166,986 4,552 2,148,956 1,127,235 Colombia 69,479 130,124 226,967 122,903 577,112 128,224 2,000 Ecuador 4,554 1,600 47,026 13,670 British Guiana 33 2,493 Dutch Guiana 10 io 6,390 400 400 1,402 4,929 Peru 282,194 362,345 898,258 379,112 8,763,316 5,378,985 Venezuela 68 512 10,000 Total South America 448,487 734,108 1,531,948 522,07912,489,044 6,799,876' 400 ( 9,587 25,227 11,017 China 1,000,000 1 278 000 1,289,974 1,065,225 1.065.225; 149.915.419 16,971,155 British India 223,211108,877,478 Dutch East Indies 159,338 407,464 2,290,213 971,229 French East Indies. 4,058,373 Hongkong 1,650 85,473i,8i3,i46 i,898,6i9 18,698,886 4,037,981 Japan 713,723 713,763 Russia in Asia 970 52,759 Turkev in Asia 38,511 Total Asia.... 1,000,000 159,338, 1,685,464 3,620,348 971,229 1,150,6981,813,146 2,963,844 713,72373,610,622129,939,373 New Zealand 191 191 11,407 Philippine Islands.. 1,524 1,333 2,857 12,883 7 654 British South Africa 6,097 76,822 British West Africa. 5,480 Portuguese Africa 6,664 6,664 93,321 42 998 Total all countries... 2,018,861 2,039,486 6,496,229 1,435,728164,011,51150,865,814 1,980,0433,126,998 5,494,336 855,679288,471,663154,597,259 1 Includes: Ore and base bullion, $50,023,000; United States mint or assay office bars, $3,000; bullion refined, $4,973,000, United States coin, $1,650,000; foreign coin, $7,362,000. 2 Includes: Domestic exports—Ore and base bullion, $727,000; United States mint or assay office bars, $3,444,000; bullion refined, $50,372,000 coin, $13,969,000. Foreign exports—Ore and base bullion, $1,000; bullion refined, $16,334,000; coin, $3,624,000. Excess of silver exports over imports since Jan. 1, 1920, $24,460,000. Excess of silver exports over imports since Aug. 1,1914, $453,832,000. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1004 FEDERAL RESERVE BULLETIN. SEPTEMBER, 1920. General stock of money in the United States, money held by the Treasury and by the Federal Reserve system^ and all other money in the United States, Aug. 1, 1920. Held in the Held outside Amount per United States Held by or for United States capita outside General stock. Tr o e f a t s h u e r y G a o s v a e s r s n e - ts B F a e n d k e s r a a l n d R a e g se e r n v t e s. F T ed re e a ra s l u r R y e a se n r d ve U Tr n e i a te s d u ry S ta a t n e d s ment.1 system. Federal Reserve system. Gold coin (including bullion in Treasury)2 $2,695,337,608 $409,632,934 $1,273,737,017 $427,700,394 Gold certificates 329,633,960 254,633,303 Standard silver dollars | 269,798,602 8,i90,"928 3 64,971,151 73,586, 309 Silver certificates. • 29,452,873 91,943,922 Subsidiary silver 258,863,512 6,364,173 252,499,339 Treasury notes of 1890 1,653,419 United States notes 346,681,016 6,045,338 <56,566,145 284,069,533 Federal Reserve notes 3,423,299,935 27,65), 850 287,454,095 3,108,194,990 Federal Reserve Bank notes 207.' 400,000 2,115,736 14,999,899 190,284,365 National-bank notes 726,463,704 23,824,306 2,195,052 700,444,346 Total: Aug. 1,1920. 7,927,844,377 483,824,265 2,059,010,192 5,385,009,920 $50.22 July 1,1920.. 7,887!181.586 485,057,472 2,021,271, 614 5,380, 852,500 50.19 June 1, 1920. 7,804;528,' 384 462,799, 326 1,988,583, 225 5,353,145,833 50.00 May 1, 1920 . 7, 755,953,906 488,928,232 1,976,153,519 5,290,872,155 49.45 Apr. 1, 1920.. 7,76i;146,018 503,309,638 1,984,495,464 5,273,340,916 49.33 Mar. 1,1920.. 7, 806,311,880 546,960,744 1,981,490,058 5,277,861,078 49.41 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 Julyl, 1919.. 7,588,473,771 578,848,043 2,167,280,313 4,842,345,415 45.00 Jan. 1, 1919.. 7, 780,793,606 454,948,160 2,220,705,767 5,105,139,679 47.83 Julyl, 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 Julyl, 1917.. 5,480;009, 884 253,671,614 1,280,880,714 3,945,457,556 37.88 1 Includes reserve funds held against issues of United States notes and Treasury notes of 1890 and redemption funds held against issues of national-bank notes, Federal Reserve notes, and Federal Reserve Bank notes, but excludes gold and silver coin and bullion held in trust for the redemption of outstanding gold and silver certificates and Treasury notes of 1890. * Includes balances in gold settlement fund standing to the credit of the Federal Reserve Banks and agents. 3 Includes subsidiary silver. 4 Includes Treasury notes of 1890. FEDERAL RESERVE BANK DISCOUNT RATES. Rates on paper discounted for member banks approved by the Federal Reserve Board up to Aug. SI, 1920. Paper maturing within 90 days. Bankers' ac- Agricultural Secured by— ceptances and live-stock Federal Reserve Bank. maturing paper maturing Trade accept- within 3 within 91 to Treasury Liberty bonds ances. All other. months. 180 days. certificates of and Victory indebtedness. notes. Boston 54 7 New York.... 54 6 7 6 Philadelphia. 6 54 6 54 Cleveland 54 5J 5| 54 Richmond. .. 6 6 6 6 Atlanta 54 6 54 Chicago 7 6 6 M St. i n L n o e u a i p s olis-. 5 5 4 J 54 6 64 5 6 4 D K a a l n l s a a s s Cit " y . . . . . 6 5 5 6 4 4 6 6 5 5 4 4 San Francisco 6 6 1 Discount rate corresponds to interest rate borne by certificates pledged as collateral, with minimum of 5 per cent in the case of Philadelphia, Atlanta, Kansas City, and Dallas, and 5^ per cent in the case of Richmond, Chicago, and San Francisco. 2 5\ per cent on paper secured by 5i per cent certificates, and 5 per cent on paper secured by 4| and 5 per cent certificates. NOTE.—Rates shown for Atlanta, St. Louis, Kansas City, and Dallas are normal rates, applying to discounts not in excess of basic lines fixed for each member bank by the Federal Reserve Bank. Rates on discounts in excess of the basic line are subject to a £ per cent progressive increase-for each 25 per cent by which the amount of accommodation extended exceeds the basic line. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

SEPTEMBEK, 1920. FEDERAL RESERVE BULLETIN. 1005 CONDITION OF MEMBER BANKS. Abstract of condition reports of State bank and trust company members in each Federal Reserve district on June 30, 1920. [In thousands of dollars.] N t D r ( o i 3 i c . s 6 - t 1 b D a N i ( n s 1 o t k 3 . r s 2 i 2 c .) t b N t a D r ( n o i 4 i c . k s 0 t - s 3 ). b N t a D ( r 1 n o i i 0 c . k s 9 t - s 4 ). b N t a D r ( n o i 5 i c . k s 3 t - s 5 ) b N t a D r ( n o i 7 i c . k s 2 t - s 6 ). D b N a i ( s n 3 o t 3 k . r 9 i s 7 c ) t . b N a t D r ( n o 8 i i . k c s 6 - t s 8 ). b N a t D ( r 1 n o i i 0 k c . s 7 t - s 9 ), b N t a D r o ( n 5 i . i c k s 6 1 t - s 0 ). b N t a D ( r o 1 n i . i 6 c k s 0 1 t - s 1 ). b N t a D ( r o 1 n i . i 8 c k s 4 1 t - s 2 ). b U S ( T a 1 n t n o , a i 3 k t t t 7 a e e s 4 l s d ). RESOURCES. Loans and discounts 451,348 2,186,414 176,846 471,671 110,833 213,747 1,115,947 246,429 83,192 71,481 79,816 475,030 5,682,754 Overdrafts 216 1,254 120 345 178 817 665 523 182 153 642 1,038 6,133 Customers' liability on account of letters of credit 775 1 673 198 18 7 125 1,797 Customers' liability on account of acceptances 28,522 143,593 1,436 9,819 8,232 29,738 10y424 5 31 4 1,894 235,587 Liberty bonds (exclusive of Liberty bonds borrowed).. 12,950 172,137 14,571 29,739 12,979 49,614 10,649 3,242 6,713 4,536 37,814 360,042 Other United States bonds (exclusive of United States bonds borrowed) 65 216 4 209 81 7,474 22 30 41 40 3,056 11,238 United States Victory notes.. 6,729 37,275 3,734 9,153 1,372 2,692 30,096 2,252 505 1,383 685 8,575 104,451 United States certificates of indebtedness 11,950 95,220 15,097 15,220 515 2,807 32,118 2,941 1,220 654 2,438 17,083 197,263 War savings and thrift stamps, and Treasury savings certificates actually owned 100 20 110 19 67 367 33 17 63 122 1,052 Stock of Federal Reserve Bank 10,588 2,141 3,234 632 1,153 5,158 1,420 276 454 1,814 29,108 Other bonds, stocks, etc. (exclusive of securities borrowed) 96,48.7 466,231 100,787 174,543 12,970 26,723 228,786 41,560 8,328 11,296 1,055 105,134 1,273,900 Banking house 9,693 57,183 8,083 17,530 3,186 8,499 20,363 7,257 1,675 761 1,686 13,072 148,988 Furniture and fixtures 1,014 1,343 504 1,332 221 819 2,962 838 499 349 733 2,908 13,522 Other real estate owned 818 5,439 1,807 6,653 497 1,812 1,574 1,167 487 103 646 3,114 24,117 Lawful reserve with Federal Reserve Bank 40,705 300,252 19,710 40,397 6,034 18,047 95,745 21,536 4,807 6,767 5,612 33,803 593,415 Gold coin and certificates 1,814 8,916 452 346 92 296 5,202 351 205 169 131 2,348 20,322 All other cash in vault 14,878 46,512 5,384 14,659 3,958 6,247 33,343 4,991 1,980 1,747 2,470 15,865 152,034 Items with Federal Reserve Bank in process of collection 14,050 54,939 4,712 8,787 1,957 9,227 19,228 10,807 276 2,881 5,252 133,007 Due from banks, bankers, and trust companies 26; 685 118,783 17,052 29,598 12,016 32,831 87,682 25,094 8,400 15,037 10,925 47,480 431,583 Exchanges for clearing house, also checks on other banks in same place 13,554 283,879 4,178 9,080 1,459 7,807 47,294 4,892 728 2,085 765 8,617 384,338 Outside checks and other cash items 2,701 14,786 702 4,548 313 13,369 1,608 614 675 1,078 5,872 47,204 Approximate interest earned but not collected 814 16,292 1,511 989 112 549 2,111 679 388 132 57 2,104 25,738 Other assets 6,388 94,440 1,001 2,752 334 5,038 14,728 1,433 243 187 799 1,816 129,159 Total.. 743,390 4,116,567 J379,853 851,387 163,685 361,606 1,843,582 396,906 117,383 123,014 115,533 793,936 10,006,842 LIABILITIES. Capital stock paid in 32,400 167,792 23,423 39,841 13,200 24,585 94,784 26,885 9,147 6,555 11,691 43,295 493,598 Surplus fund 36,550 185,832 47,674 68,561 9,159 15,338 80,310 20,756 2,965 2,978 4,739 19,733 494,595 Undivided profits, less expenses and taxes paid 12,454 62,153 10,159 16,294 3,226 3,912 22,632 6,134 987 1,743 8,900 150,042 Approximate interest and discount collected but not earned 2,230 9,302 71 359 1,111 2,845 1,232 107 249 172 962 19,636 Amount reserved for taxes accrued 1,496 11,091 695 1,459 134 4,073 590 101 166 66 595 21,346 Amount reserved for interest accrued 1,769 4,924 798 576 169 186 1,255 464 146 36 688 11,10* Due to Federal Reserve Bank 1,214 3,113 112 233 275 230 213 3 118 10 5,521 Due to banks, bankers, and trust companies 21,490 374,394 8,265 18,303 11,806 39,049 83,016 29,249 9,013 14,451 6,296 21,014 636,346 Certified and cashiers' or treasurers' checks outstanding 7,496 162,229 1,225 L134 2,056 2,409 17,183 2,533 1,119 2,809 1,052 9,863 218,108 Demand deposits 456,407 2,426,564 210,222 317,499 65,292 151,435 682,730 163,692 34,585 57,920 68,811 216,440 4,851,597 Time deposits 119,564 361,054 46,486 346,679 44,034 95,659 767,328 106,155 50,896 27,915 13, 703 446,562 2,426,035 United States deposits 4,658 8,648 2,554 1,042 4,707 Bills payable with Federal 50,031 7,233 368 2,449 4,369 81 358 86,498 Reserve Bank 15,151 19,217 11,574 5,004 11,213 Bills payable other than with 100,887 11,787 6,794 12,141 46,353 1,789 4,062 245,972 Federal Reserve Bank 375 659 9,281 2,787 4,879 Cash letters of credit and 1,725 971 4,679 3,487 2,731 5,753 2,659 39,986 travelers' checks outstanding , 16,502 1 579 207 216 4 231 17,756 Acceptances , 29,144 149,030 1,436 9,717 2,060 8,318 30,290 10,406 1,933 242,36ft Other liabilities 992 29,944 762 2,525 74 210 3,254 5,394 2,911 46,333 Total., 743,390 4,116,567 379,853 851,387 163,685 361,606 1,843,582 396,906 117,383 123,014 115,533 793,936 10,006,842 Liability for rediscounts with Federal Reserve Bank 32,917 97,905 15,387 12,990 6,927 32,985 65,505 32,294 5,010 4,684 15,611 327,513 Liability for rediscounts with other banks 502 141 300 145 1,035 4,034 1,762 3,419 733 1,317 497 2,878 16,761 0149°—20- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1006 FEDERAL RESERVE BULLETIN. SEPTEMBER, 1920. Abstract of condition reports of State bank and trust company members of the Federal Reserve System on June 30, 1920. arranged by classes. [In thousands of dollars.l Central reserve city banks. Total Total Other re- Country United United serve city banks States States ( N 3 e 2 w b a Y n o k r s k ). (1 C 4 h b ic a a n g k o s). (1 S 7 t. b L a o n u k i s s ). T b o a t n a k l s (6 ). 3 ba b n a k n s k ( s 1 ) 8 . 0 b ( a 1 n ,1 k 3 s 1 ). ba 3 n 0 ( k 1 ,1 s ,3 ) 9 7 2 J 4 0 u . ne ba 4 n ( , 1 k 1 , s 3 9 ) 0 2 M 6 0. ay RESOURCES. Loans and discounts 1,726,916 450,295 124,904 2,302,115 1,984,337 1,396,302 5,682,754 5,508,993 Overdrafts 1,034 158 37 1,229 2,679 2,225 6,133 5,702 Customers' liability on account of letters of credit .574 17 591 1,105 101 1,797 1,723 Customers' liability on account of acceptances. 137,895 28,185 9,440 175,520 51,800 8,267 235,587 230,015 Liberty bonds (exclusive of Liberty bonds borrowed) 134,725 6,403 4,075 145,203 114,856 360,042 339,777 Other United States bonds (exclusive of United States bonds borrowed) 120 7,150 7,270 3,572 396 11,238 13,455 United States Victory notes 24,740 3,614 444 28,798 43,635 32,018 104,451 103,663 United States certificates of indebtedness 75,928 3,518 1,462 80,908 83,606 32,749 197,263 249,226 War savings and thrift stamps and Treasury savings certificates actually owned 42 32 4 78 ! 373 601 1,052 1,217 Stock of Federal Reserve Bank 8,282 2,309 831 11,422 | 11,201 6,575 29,198 28,282 Other bonds, stocks, etc. (exclusive of securi- 5 Ues borrowed) 287,426 71,355 28,685 387,466 561,546 324,888 1,273,900 1,292,924 Banking house 42,112 2,973 2,948 48,033 61,661 39,294 • 148,988 142,296 Furniture and fixtures 206 102 345 5,330 7,539 13,522 12,845 Other real estate owned 3,345 §1 186 3 P22 14,551 5,944 24,117 26,859 Lawful reserve with Federal Reserve Bank... 256,280 48,605 13,453 318,'338 184,556 90,521 593,415 599,429 ' G$d coin and certificates 8,388 4,070 84 12,542 3,673 4,107 20,322 17,426 * All other cash in vault 30,878 7,468 2,149 40,495 61,603 49,936 152,034 148,040 Items with Federal Reserve Bank in process of collection 37,801 11,743 6,278 55,822 60,721 16,464 133,007 125,337 Due from banks, bankers, and trust companies 86,133 33,920 9,473 129,526 174,802 127,255 43J,583 436,855 Exchanges for clearing house, also checks on other banks in same place 273,426 30,318 3,095 306,839 61,814 15,685 384,338 246,512 Outside checks and other cash items 12,571 6,491 643 19,705 19,583 7,916 47,204 37,916 Approximate interest earned but not collected. 12,552 1,042 428 14,022 7,911 3,805 25,738- 20,406 Other assets 92,685 12,746 347 105,778 17,831 5,550 129,159 129,439 Total. 3,254,059 732,605 209,311 4,195,975 3,532,746 2,278,121 10,006,842 9,718,337 LIABILITIES. Capital stock paid in 122,720 36,450 13,075 172,245 177,232 144,121 481,536 Surplus fund 154,377 14,610 210,864 200,153 83,578 494,595 486,840 Undivided profits, less expenses and taxes 41,877 paid 47,982 3,539 60,134 52,471 37,437 150,042 151,142 Approximate interest and discount collected, 8,613 but not earned 7,586 813 10,551 6,307 2,778 19,636 17,746 .Amount reserved for taxes accrued 10,009 2,152 435 13,389 5,914 2,043 21,346 18,863 Amount reserved for i nterest accrued 4,266 2,945 244 5,083 3,336 2,685 11,104 19,643 Due to Federal Reserve Bank 2,949 573 3,152 443 1,926 5,521 2,508 Due to banks, bankers, and trust companies.. 346,205 203 9,199 404,898 170,309 61,139 636,346 604,365 Certified and cashiers' or treasurers' checks 49,494 outstanding 156,280 7,140 1,170 164,590 38,490 15,028 218,108 182,685 Demand deposits 1,945,795 337,249 91,343 2,374,387 1,479,647 997,563 4,851,597 4,713,460 Time deposits 155,359 204,345 57,978 417,682 1,183,259 825,094 2,426,035 2,337,635 United States deposits 46,716 1,211 2,287 50,214 29,397 6,887 86,498 76,521 Bills payable with Federal Reserve Bank 64,684 10,412 5,124 80,220 105,718 60,034 245,972 294,097 Bills payable other than with Federal Reserve Bank : 393 100 493 13,115 26,378 35,216 Cash letters of credit and travelers' checks outstanding 16,416 97 4 16,517 1,207 32 17,756 9,374 Acceptances 143,335 28,790 9,422 181,547 52,585 8,237 242,369 235,422 Other liabilities 28,987 954 68 30,009 13,163 3,161 46,333 51,284 Total. 3,254,059 732,605 209,311 4,195,975 3,532,746 2,278,121 10,006,842 9,718,337 Liability for rediscounts with Federal Reserve Bank 79,255 46,313 13,799 139,367 137,759 50,387 327,5H 326,108 Liability for rediscounts with other banks 8,167 8,596 16,763 10,765 Ratio of reserve with Federal Reserve Bank to net deposit liability (per cent) 12.0 12.4 12.8 12.1 10.0 6.6 10.1 10.5 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

SEPTEMBER, 1920. FEDERAL RESERVE BULLETIN. 1007 Classification of loans and discounts of State bank and trust company members of the Federal Reserve System, as shown by their condition reports for June 30, 1920. [In thousands of dollars.] Dis- Dis- Dis- Dis- Dis- Dis- Dis- Dis- Dis- Dis- Dis- Dis- Total trict trist trict trict trict trict trict trict trict trict trict trict 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 States (36 (132 (40 (109 (53 (72 (339 (86 (107 (56 .-. (160 (184 (1,374 banks). banks). banks). banks). banks). banks). banks). banks). banks). banks). banks). banks). banks). On demand: Not secured by collateral. 27,429 67,301 5,979 30,990 3,192 7,517 32,801 10,315 4,101 3,031 3,703 21,592 217,951 Secured by Government war obligations 2,025 34,471 5,419 4,785 1,043 1,381 11,298 2,351 273 134 164 1,941 65,285 Secured by other col- 71,204 600,093 85,577 97,479 14,350 42,047 159, 288 37,512 3,643 6,820 6,422 19,233 1,143,668 On time: Not secured by collateral.249,140 960,339 43,361 143,671 54,592 112,312. 513,879 113,582 35,590 27, 730 26,180 166,309 2,446,685 Secured by Government war obligations 24,708 195,599 22,787 20,644 6,261 8,770 34,803 8,657 1,677 2,676 1,237 9,830 337,649 Secured by other collateral 62,811 372,804 22,302 72,367 30,805 63,771 200,740 76,114 26,187 27,717 42,850 72,143 1,070,611 Secured by real estate mortgages, or other real estate liens or deeds 43,978 57,018 6,690 113,768 8,437 13,075 221,778 32,994 17,043 9,333 5,055 194,123 723,292 Acceptances of other banks discounted 3,246 81,150 300 3,962 76 275 21,692 2,549 421 41 7,824 121,536 Acceptances of this bank purchased or discounted 2,759 7,258 118 644 115 2,531 2,013 206 418 16,062 Loans and discounts not classified 50 106 156 Total loans and discounts . • • 487,350 2,376,033 192,533 488,310 118,871 251,679 1,198,292 284,280 88,935 77,482 85,611 493,519 6,142,895 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Abstract of condition reports of all member banks in each Federal Reserve district on June 80, 1920 {including 8,025 national banks and 1,874 State banks and trust O companies). O [In thousands of dollars.] 00 D N is o t . r i 1 ct D N is o t . r i 2 ct D N is o t . r i 3 ct D N is o t . r i 4 ct D N is o t . r i 5 ct D N is o t . r i 6 ct D N is o t . r i 7 ct D N is o t . ri 8 ct D N is o t . ri 9 ct D N i o s . t ri 1 c 0 t D N i o s . t ri 1 c 1 t D N i o s . t ri 1 c 2 t U S T t n o a i t t t a e e l s d (432 (771 (860 (603 (440 (1,395 (562 (1,061 (811 (796 (9,399 banks). banks). banks). banks). banks). banks). banks). banks). banks). banks). banks). banks). RESOURCES. Loans and discounts 1,313,187 5,431,265 1,044,289 1,559,736 829,625 667,636 2,765,259 733,844 727,411 949,557 654,438 1,399,834 18,076,111 Overdrafts 597 4,763 321 1,010 1,036 1,417 2,722 1,321 1,605 2,632 2,213 2,950 22,587 Customers' liability on account of letters of credit 14 6,329 25 1 53 691 1,420 253 51 7 1,077 11,015 Customers' liability on account of acceptances.. 86,471 338,606 25,631 28', 12,763 15,140 74,654 17,350 8,464 4,800 4,911 35,147 652,001 United States Government securities owned1.. 165,600 813,998 250,100 297, 167,223 129,953 396,615 115,879 91,780 139,334 127,121 246,968 2,941,655 Stock of Federal Reserve Bank 7,527 24,670 8,323 10, 4,813 3,782 13,270 4,251 3,274 4,294 3,741 6,392 94,485 Other bonds, stocks, and securities2 242,790 983,265 393,850 447, 92,170 63,992 412,515 105,706 67,056 82,202 16,968 216,870 3,124,897 Banking house 33,762 104,563 34,027 59, 29,250 21,937 59,236 19,921 18,881 21,703 20,418 41,049 464,634 Furniture and fixtures 2,905 5,274 3,856 5, 3,353 3,689 8,184 2,886 3,840 4,714 4,854 9,169 57,763 Other real estate owned 2,624 9,576 5,065 13, 2,953 4,303 6,349 3,729 4,193 2,622 5,296 9,158 69,066 Lawful reserve with Federal Reserve Bank 117,233 732,871 102,596 145, 61,028 53,848 258,033 64,416 49,757 80,174 54,249 119,076 1,838,648 Cash in vault 51,383 157,822 44,889 63, 33,129 23,898 103,739 19,914 20,504 30,355 23,692 48,841 621,817 Items with Federal Reserve Bank in process of collection 49,829 161,003 62,720 64,235 36,687 22,564 72,258 40,588 8,037 45,019 26,058 26,118 615,116 Due from banks, bankers, and trust companies. 97,099 229,096 94,998 163,406 89,677 100,479 329,417 87,448 101,274 216,263 102,381 212,503 1,824,041 Exchanges for clearing house, also checks on other banks in same place 45,974 860,755 45,684 34,219 20,710 16,579 103,560 15,109 11,841 24,649 8,322 41,397 1,228,799 Outside checks and other cash items 8,410 37,447 7,125 8,623 4,415 5,221 21,737 2,993 6,048 5,464 6,576 12,210 126,269 Due from United States Treasurer 2,596 5,710 3,220 4,929 3,164 2,036 4,710 2,066 1,853 2,436 2,493 3,292 38,505 Approximate interest earned but not collected.. 3,494 28,021 3,989 5,471 1,303 1,589 9,169 2,302 6,111 3,445 1,954 6,880 73,728 Other assets 18,572 227,285 4,516 5,171 811 5,618 27,492 2,039 1,415 658 18,598 313,164 Total.. 2,250,067 10,162,319 2,135,224 2,917,876 1,394,163 1,144,372 4,670,339 1,242,015 1,133,344 1,620,372 1,066,681 2,457,529 32,194,301 LIABILITIES. Capital stock paid in 134,257 384,497 109,082 166,960 96,178 77,080 260,922 91,497 72,491 94,404 82,344 147,302 1,717,014 Surplus fund 120,622 449,092 169,112 173,797 68,082 52,053 186,451 51,921 37,985 50,767 47,749 72,825 1,480,456 Undivided profits, less expenses and taxes paid.. 49,294 182,254 42,342 62,459 21,421 15,878 68,361 20,983 18,786 22,493 19,901 37,255 561,427 Approximate interest and discount collected but not earned 9,510 31,641 5,472 6,016 5,047 3,938 12,489 4,678 3,035 4,514 3,839 2,995 93,174 Amount reserved for taxes accrued 5,641 32,541 2,823 3,804 1,398 1,880 10,082 1,743 1,878 1,813 1,641 2,445 67,689 Amount reserved for interest accrued 2,676 8,812 1,952 2,221 1,787 913 2,911 831 1,435 903 397 1,636 26,474 Due to Federal Reserve Bank 3,914 7,537 1,453 1,562 4,961 964 1,584 105 614 32 1,665 291 24,682 Due to banks, bankers, and trust companies 136,258 1,399,216 166,589 226,690 115,666 101,509 505,400 146,759 106,800 261,676 94,616 199,837 3,461,016 Certified cashier's or treasurer's checks outstanding 17,432 453,735 13,202 20,092 10,188 6,428 39,573 7,396 12,490 22,854 13,079 31,892 648,361 Demand deposits 1,234,574 5,200,065 1,000,052 1,292,543 569,343 497,585 1,923,274 535,046 416,003 771,494 592,380 1,034,813 15,067,172 Time deposits 320,556 881,858 386,497 736,296 326,160 258,167 1,295,017 240,461 378,271 252,124 96,908 738,611 5,910,926 United States deposits 21,666 122,831 19,032 20,966 6,967 6,481 16,260 8,580 2,865 13,287 5,063 16,181 260,179 Bills payable with Federal Reserve Bank , 46,685 470,398 120,273 53,538 64,193 49,310 143,257 39,591 18,952 39,715 34,434 41,721 1,122,067 Bills payable other than with Federal Reserve Bank 4,791 5,013 4,382 7,194 19,168 10,990 18,547 15,695 18,182 17,284 16,285 17,912 155,443 Cash letters of credit and travelers' checks outstanding 280 22,629 1,264 91 701 2,230 275 18 268 178 28,896 Acceptances 88,953 353,256 26,323 28,297 13,033 15,353 75,781 17,365 8,459 4,848 5,068 36,829 673,565 National bank notes outstanding 47,303 84,134 54,546 89,920 56,934 39,833 82,816 41,567 31,293 48,825 46,895 63,587 687,653 United States bonds borrowed 4,241 34,086 10,215 20,394 7,656 4,499 14,664 11,343 3,161 11, 402 3,530 5,669 130,860 Other bonds and securities borrowed 178 1,193 20 465 56 218 355 152 31 1,030 459 425 4,582 Other liabilities 1,236 37,531 1,791 3,398 5,834 592 10,365 6,027 595 639 250 4,407 72,665 Total. 2,250,067 10,162,319 2,135,224 2,917,876 1,394,163 1,144,372 4,670,339 1,242,015 1,133,344 1,620,372 1,066,681 2,457,529 32,194,301 Liability for rediscounts, including those with Federal Reserve Bank 3 110,775 346,578 89,358 64,584 74,517 80,498 343,221 100,471 85,328 93,679 56,958 112,825 1,558,792 1 Includes United States Government securities borrowed by national banks. 2 Includes other bonds and securities borrowed by national banks. 3 Includes acceptances of other banks and foreign bills of exchange sold with indorsement or other guaranty by national banks. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

SEPTEMBER, 1920. FEDERAL RESERVE BULLETIN. 1009 Abstract of condition reports of all member banks of the Federal Reserve system on June 30, 1920, arranged by classes (including 8,025 national banks and 1,374 State banks and trust companies), [In thousands of dollars] Central Reserve city banks. Total Total R O es th e e rv r e C b o a u n n k t s ry U S n ta i t t e e s d U S n ta i t t e e s d N (6 e 3 w b a Y n o k r s k ). (2 C 3 h b ic a a n g k o s). (2 S 2 t. b L a o n u k i s s ). (108 T b o a ta n l ks) (5 c 5 i 3 ty b b a a n n k k s s ). b ( a 8 n ,7 k 3 s 8 ). J b u a n n e k 3 s 0 ) , b M ( a 9 a n ,2 y k 9 s 1 4 ) , 1920. 1920. RESOURCES. Loans and discounts 4,249,273 1,016,834 294.445 5,560,552 5,607,241 6,908,318 18,076,111 17,794,164 Overdrafts 4,188 377 81 4,646 5,681 12,260 22,587 22,080 Customers' liability on account of letters of credit 6,124 655 180 6,959 3,266 790 11,015 7,482 Customers' liability on account of acceptances. 329,909 64,964 14,755 409,628 218,819 23,554 652,001 655,405 United States Government securities owned1.. 572,249 59,662 28,205 660,116 825,317 1,456,222 2,941,655 3,081,156 Stock of Federal Reserve Bank 18,477 4,927 1,845 25,249 30,101 39,135 94,485 92,435 Other bonds, stocks, and securities 2 543,901 103,025 47,402 694,328 955,726 1,474,843 3,124,897 3,175,951 Banking house 71,201 11,973 7,469 90,643 162,686 211,305 464,634 453,922 Furniture and fixtures 1,000 120 747 1,867 12,472 43,424 57,763 55,808 Other real estate owned 4,369 204 1,890 6,463 27,722 34,881 69,066 70,819 Lawful reserve with Federal Reserve Bank 619,667 127,306 31,246 778,219 538,214 522,215 1,838,648 1,865,638 Cash in vault 108,231 33,706 5,062 146,999 180,640 294,178 621,817 620,897 Items with Federal Reserve Bank in process of collection 119,591 40,148 26,074 186,713 364,203 64,200 615,116 580,063 Due from banks, bankers, and trust companies 130,689 131,095 30,390 292,174 706,053 825,814 1,824,041 1,874,173 Exchanges for clearing house, also checks on other banks in same place 841,880 69,272 9,741 920,893 244,575 63,331 1.228,799 867,427 Outside checks and other cash items 28,338 8,536 927 37,801 53,996 34,472 126,269 102,996 Due from United States Treasurer 3,173 280 547 4,000 10,194 24,311 38,505 38,187 Approximate interest earned but not collected. 21,328 1,599 625 23,552 18,749 31,427 73,728 66,070 Other assets 224,390 23,163 593 248,146 54,789 10,229 313,164 323,899 Total. 7,897,978 1,697,846 503,124 10,098,948 10,020,444 12,074,909 32,194,301 31,748,572 LIABILITIES. Capital stock paid in 266,462 84,800 37,775 389,037 529,164 798,813 1,717,014 1,695,555 Surplus fund 359,992 80,777 23,710 464,479 483,518 532,459 1,480,456 1,446,915 Undivided profits, less expenses and taxes paid 138,893 22,446 170,223 158,663 232,541 561,427 Approximate interest and discount collected but not earned 26,131 7,639 2,443 36,213 30,212 26,749 93,174 Amount reserved for taxes accrued 30,624 7,132 832 38,588 20,246 8,855 67,689 62,560 Amount reserved for interest accrued 6,970 574 264 7,808 6,862 11,804 26,474 39,404 Due to Federal Reserve Bank 3,122 203 3,325 5,652 15,705 24,682 21,547 Due to banks, bankers, and trust companies. 1,319,575 322,474 77,245 1,719,294 1,362,380 379,342 3,461,016 3,524,359 Certified and cashiers' or treasurers' checks outstanding 439,893 19,419 3,240 462,552 109,133 76,676 648,361 518,517 Demand deposits 4,030,805 808,233 209,437 5,048,475 4,525,420 5,493,277 15,067,172 14,833,215 Time deposits 296,026 221,381 85,341 602,748 1,798,642 3,509,536 5,910,926 5,747,532 United States deposits , 110,016 4,933 6,359 121,308 94,961 43,910 260,179 190,168 Bills payable with Federal Reserve Bank 400,312 43,981 14,606 458,899 367,203 295,965 1,122,067 1,246,721 Bills payable other than with Federal Reserve Bank 573 100 673 48,053 106,717 155,443 133,497 Cash letters of credit and travelers' checks outstanding , 22,506 1,416 199 24,121 3,751 1,024 28,896 36,109 Acceptances , 344,239 66,144 14,737 425,120 224,018 24,427 673,565 673,852 National bank notes outstanding , 36,960 346 10,523 47,829 170,857 468,967 687,653 687,931 United States bonds borrowed 30,453 3,250 7,373 41,076 55,145 34,639 130,860 123,143 Other bonds and securities borrowed 1,059 1,059 1,699 1,824 4,582 6,119 Other liabilities 33,367 2,598 156 36,121 24,865 11,679 72,665 83,945 Total. 7,897,978 1,697,846 503,124 10,098,948 10,020,444 12,074,909 32,194,301 31,748,572 Liability for rediscounts, including those with Federal Reserve Banks 301,142 212,034 55,456 568,632 296,192 1,558,792 1,551,047 Ratio of reserve with Federal Reserve Bank to net deposit liability (per cent) 12.8 12.9 12.4 12.8 10.0 7.4 9.9 10.1 1 Includes United States Government securities borrowed by national banks. * Includes other bonds and securities borrowed by national banks. includes acceptances of other banks and foreign bills of exchange sold with indorsement or other guaranty by national banks. 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INDEX. Acceptances: Index numbers: Banks granted authority to accept up to 100 per cent of capital Foreign trade 953 and surplus 945 Physical volume of trade 968 Purchased by Federal Reserve Banks during July 984,985 Retail trade 951 Bank deposits in Great Britain, France, and Italy 909 Wholesale prices abroad 954 Banking situation, discussion of 910 Wholesale prices in the United States 963 Books received by Federal Reserve Board library 946 Interdistrict time schedule 987 Boots and shoes, terms of sale in the industry 930 Interest rates: Boxes and shooks, terms of sale in the industry 937 In the New York market 941 Branches, foreign, of American banks 944 Prevailing in various centers 967 Brick, terms of sale in the industry 938 Irrigation company, paper of, as commodity paper, ruling on 949 Builders' supplies, terms of sale in the industry 939 Law department: Building operations, loans for 927 Amendment to Texas banking laws 950 Business and financial conditions during August 912 League of Nations, report by, on currency situation and foreign Movement of loans 920 exchange 898,901 Collection conditions 922 Leather industry, terms of sale in 932 Production and orders of underwear 925 Loans for essential industry 904,927 Condition of wholesale trade 926 Loans, movement of, in the several districts 920 Cement industry, terms of sale in 938 Lumber industry, terms of sale in 933 Certificates of indebtedness: Maturities: Issued during August 897 Acceptances purchased 984 Maturities of, purchased by Federal Reserve Banks 992 Bills discounted and bought 984 Charters issued to national banks during August 946 Certificates of indebtedness purchased 992 Charts: Member banks: Discount and interest rates in the New York market 942 Condition reports of 995-1001 Wholesale prices in the United States 964 Abstract of 1005-1009 Clayton Act as applied to private bankers, ruling on 948 Number discounting in July 982 Clearing and collection: Number in each district....' 982 Collection of bill of lading drafts received from nonmember Resources and liabilities of, in leading cities 995-1001 bank for account of member bank, ruling on 948 State banks admitted to system during August 945 Interdistrict time schedule 987 Moehlenpah, H. A., retirement of, as member of Federal Reserve Number of member banks on par list 986 Board 911 Operations of the system, July-August 986 Money, stock of, in the United States 1004 'Clearing-house bank debits, July-August 978 National Banks: Collection conditions, reports on 922 Charters issued to, during August 946 Commercial failures reported 945 Fiduciary powers granted to 046 Condition reports: Foreign branches of 944 Federal Reserve Banks 988 Real estate loans by, exereising trust pow ers 949 Member banks in leading cities 995-1001 Paint and varnish industry, terms of sale in 940 Abstract of 1005-1009 Physical volume of trade 968 Credit control 897 Prices: Crop report for August 943 Wholesale, abroad COS, 954 Currency circulation in Great Britain, France, and Italy 909 Wholesale, in the United States 905,963 Currency, stock of, in the United States 1004 Rates: Currency situation and foreign exchange 898,901 Acceptances purchased during July 984 Debits to individual account, July-August 978 Bills discounted during July 984 Discount and open-market operations of Federal Reserve Banks 981-985 Discount, in effect 1004 Acceptances purchased during July 984,985 Discount and interest, in the New York market 941 Bills discounted during July 984 Discount and interest, in various centers 967 Bills held on last Friday in July 985 Earning assets held by Federal Reserve Banks 983 Collateral notes held on last Friday in July 985 Foreign exchange 900 Dollar exchange bills purchased during July 984 Real estate loans by national banks exercising trust powers, rul- Earning assets held during July 983 ing on 949 Member banks, number of, accommodated 982 Resources andliabilities: Discount rates: Federal Reserve Banks 988-992 In the New York market 941 Member banks in leading cities 995-1001 In effect August 31 1004 Retail trade index 951 Prevailing in various centers 967 Review of the month 897 Earning assets held by Federal Reserve Banks 983 Rulings of the Federal Reserve Board: Erratum—note circulation of the United Kingdom 928 Clayton Act as applied to private bankers 948 Failures, commercial, reported 945 Collection of bill of lading drafts received from nonmember bank for account of member bank 948 Federal Reserve Banks: Paper of irrigation company 949 Discount and open-market operations of 981-985 Real estate loans by national banks exercising trust powers 949 Resources and liabilities of 988-992 Shoe industry, terms of sale in 930 Federal Reserve note account of Federal Reserve agents 993 Silver, imports and exports of 910,1003 Fiduciary powers: State banks and trust companies admitted to system 945 Granted to national banks 946 Tanning industry, terms of sale in 928 Real estate loans by national banks exercising, ruling on 949 Terms of sale in the principal industries 928-941 Financing of the Treasury during August 897 Texas banking laws, amendment to 950 Foreign branches of American banks 944 Tile, terms of sale in the industry 938 Foreign exchange rates 900 Time schedule, interdistrict 987 Foreign loans 901 Trade: Foreign trade S99,902 Foreign 899,902 Index of 953 Index of 953 Furniture, terms of sale i11I"1 e industry 936 Physical volume of 968 Glass and glassware, terms ox ^ale in the industry 940 Retail, index of 951 Gold: Wholesale, reports on 926 Imports and exports of 909,1002 Treasury financing during August 897 Reserves in Great Britain, France, and Italy 909 Varnish industry, terms of sale in 940 Gold settlement fund transactions 976 Wholesale prices: Imports and exports: Abroad 954 ' Gold 909,1002 In the United States 963 Silver 910,1003 Wholesale trade, reports on 926 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

NEB. "•"""} OMAHA 10 ' O f --, I KANSAS CITY^ ST LOUIS ^ L """"l * 8 "! r Q NASHVILLE Tim. EMPHIS FEDERAL RESERVE DISTRICTS » FEDERAL RESERVE BANK CITIES O FEDERAL RESERVE BRANCH CITIES The branch at Helena, Mont., lias been authorized by the Federal Reserve Board, but is not yet open for business. O Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis