Federal Reserve Bulletin, 1920-11

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

FEDERAL RESERVE BOARD. EX OFPICIO MEMBERS. W. P. ,G. HARDING, Governor. EDMUND PLATT, Vice Governor. DAVID F. HOUSTON, Secretary of the Treasury, Chairman. ADOLPH C. MILLER. CHARLES S. HAMLIN. JOHN SKELTON WILLIAMS, Comptroller of the Currency. D. C. WILLS. W. W. HOXTON, Secretary. WALTER S. LOGAN, General Counsel. W. L. EDDY, Assistant Secretary. R. G. EMERSON, Assistant to Governor. W. M. IMLAY, Fiscal Agent. H. PARKER WILLIS, J. F. HERSON, Director, Division of Analysis and Research. Chief, Division of Examination and Chief Federal Reserve Examiner. M. JACOBSON, Statistician. J. E. CRANE, E. L. SMEAD, Acting Director, Division of Foreign Exchange. Chief, Division of Reports and Statistics. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

OFFICERS OF FEDE!^ RESERVE BANKS. Federal Reserve Bank of— Chairman. Governor. Deputy governor. Cashier. Boston Frederic H. Curtiss... Chas. A. Morss C. C. Bullen W. Willett. W. W. Paddock New York Pierre Jay Benj. Strong l J. H. Case2 L. H. Hendricks.3 L. F. Sailer 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 L. B. Williams4 E. R. Fancher M. J. Fleming H. G. Davis. Frank J. Zurlinden... Richmond Caldwell Hardy George J. Seay C. A. Peple Geo. H. Keesee. rTt>. ±X1T. JTD5vrrkoQara1/c-1i u-Msa A. S. Johnstone 5 JohnS. Walden5 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. "R P M^Plrm/4 5 St. Louis.. Wm McC Martin D C Biggs 0 M. Attebery J W. White Minneapolis JohnH. Rich R. A. Young W. B. Geery B. V. Moore. Q a r^^v 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 e C. H. Stewart6 i On leave of absence. 2 Acting governor. * Controller. * Acting chairman. & Assistant to governor. 6 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: Salt Lake City branch. R. B. Motherwell. Detroit branch R. B. Locke. Seattle branch C. A. McLean. St. Louis: Spokane branch W. L. Partner. Louisville branch. .. W. P. Kincheloe. 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 periodical publication of the Board. It is printed in two editions, of which the 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 th^s 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. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

TABLE OF CONTENTS. Pagr. Review of the month 1123 Business, industry, and finance, October, 1920 1135 Condition of wholesale trade 1143 Production of knit goods 1145 Production o? finished cotton fabrics : 1145 Report of the gold committee of the American Bankers' Association upon the McFadden gold bill 1147 Terms of sale in the principal industries 1149 Foreign exchange rates in New York on belligerent, neutral, and silver-standard countries 1158 Economic and financial conditions in Cuba 1162 The investment trust as a channel for investment abroad 1168 Official: State banks and trust companies admitted to system 1174 Banks granted authority to accept up to 100 per cent of capital and surplus 1175 Charters issued to national banks 1175 Fiduciary powers granted to national banks 1174 Rulings of the Federal Reserve Board : 1176 Regulations of the Federal Reserve Board, series of 1920 1179 Miscellaneous: November crop report : 1175 Commercial failures reported 1175 Statistical: Retail trade index ; 1195 Foreign trade index 1197 Wholesale prices abroad 1198 Wholesale prices in the United States 1210 Discount and interest rates prevailing in various centers. 1215 Physical volume of trade 1216 Debits to individual account, September and October 1225 Discount and open-market operations of the Federal Reserve Banks 1228 Operations of the Federal Reserve clearing system 1234 Resources and liabilities of the Federal Reserve Banks 1235 Federal Reserve note account 1240 Condition of member banks in selected cities 1241 Imports and exports of gold and silver 1248 Estimated stock of money in the United States -... 1250 Earnings and dividends of State bank and trust company members 1251 Discount rates approved by the Federal Reserve Board 1250 Diagrams: Foreign exchange rates on belligerent, neutral, and silver-standard countries 1159,1160 Wholesale prices in the United States 1212 IV Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FEDERAL RESERVE BULLETIN VOL. 6 NOVEMBER, 1920. No. 11 REVIEW OF THE MONTH. ing-fund charges, but also to retire the floating indebtedness and a considerable part of the The situation in public finance during Octo- Victory notes before the close of the fiscal year ber has shown no striking de- 1923. Earlier plans and expectations were disarranged by the unexpectedly large burdens Treasury y l pments. For the month as finance. e O r placed upon the Treasury by the transportaa whole total ordinary receipts tion act. According to the estimates there were $220,034,805, while total ordinary dis- will be paid on account of the railroads during the current fiscal year probably a billion dolbursements were $426,497,372, the deficit on lars, of which one-quarter billion has already ordinary account being thus $206,462,567. On been called for and paid. It is obvious that October 18 it was announced that the total these payments will limit the progress which amount of subscriptions received for the issue the Government had expected to make in the of Treasury certificates of indebtedness dated retirement of the floating debt. It is expected, however, that perhaps the heaviest payments October 15 and maturing March 15 next was on this account will have been completed by $185,076,500, the total amount of subscriptions the spring of next year, and then for the reallotted under this offering being $124,252,500. maining months of the fiscal year the Treasury Ten of the Federal Reserve districts oversub- looks forward to a more rapid reduction of the scribed their quota. An important survey of floating debt. By the end of the fiscal year, in the absence of unforeseen contingencies, it will the present situation in connection with the probably be reduced below two billions and it public debt was given by the Secretary of the may be brought as low as a billion and a half. Treasury in an address before the American The balance should be retired during the fiscal Bankers' Association on October 20, in which year 1922. By the end of that year the Viche said: tory loan should have been reduced by perhaps a half billion dollars as a result of sinking-fund "On the basis of daily Treasury statements, operations. The remainder, say, 3| billions, the gross debt of the United States on August will then have become substantially a floating 31, 1919, was slightly over 26^ billion dollars, debt, as it will mature during the following of which nearly 4 billions represented loan fiscal year. Provision should be made, thereand tax certificates maturing within the year. fore, under proper Treasury regulations, for the On September 30, 1920, the gross debt was acceptance of Victory notes during the fiscal $24,087,000,000, a reduction of over 2\ bilyear 1923, before maturity, in payment of inlions,while the floating debt was $2,347,000,000, come and profits taxes. In this way and or approximately $1,600,000,000 less than on through sinking-fund operations it should be August 31, 1919. These reductions were efpossible to reduce the Victory loan so that at fected chiefly by the application of the promaturity it would stand at approximately ceeds of taxation and salvage and were made three billions of dollars." possible to some extent by the reductions of Treasury balances effected as a result of re- During the past few weeks the Federal Reduced expenditure and the retirement of large serve Board has held its usual amounts of loan certificates. The Treasury Condition of , -n ^ expects that further reductions in both gross £ Reserve System, autumn conferences with, trie and floating debt will be shown at the end of Federal Advisory Council and the current month and that by the close of the current quarter there will be a much more sub- the chairmen and governors of Federal Reserve stantial decrease. * * * Sound fiscal pol- Banks. The Federal Advisory Council met in icy dictates that the receipts from taxes and Washington on September 20-21, while consalvage be kept sufficiently high not only to ferences with Federal Reserve agents and govmeet current bills, including interest and sinkernors of Federal Reserve Banks took place on 1123 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1124 FEDERAL RESERVE BUTJiETIK. NOVEMBER, 1920. October 13-15. At this series of conferences During the past month the Federal Reserve much attention was devoted to credit condi- Board has heard statements The credit situtions throughout the country, the reports made from representatives of farmation. to the Board showing that the process of con- ers' organizations relative to verting relatively nonliquid credit secured by the general condition of credit and the volume Government obligations into liquid credit was of it available for the moving of crops. After proceeding satisfactorily. During the period canvassing the whole situation thoroughly the from July 2 to October 15 the following changes Board on October 16 issued a statement to the have occurred in some of the principal items press, in which it stated the situation as follows : of Federal Reserve Banks. In view of the representations which have recently been made to the Board as to the un- [Amounts in thousands of dollars.) availability of credit in agricultural sections, [Increase or decrease indicated by + or — sign.] the Board requested information concerning credit conditions throughout the country from Advances se- Other the chairmen and governors of Federal Reserve cured by bills dis- District. Government counted and Banks at their usual autumn conference here obligations. purchased. this week. The Board is advised that credit has been steadily available for the successive No. 1. -31,718 +20, 235 seasonal requirements of agriculture, as well as No. 2. -31,379 +48,163 for the needs of commerce and industry, and No. 3. -21,514 +41,168 No. 4. -43, 507 +86,459 that there is no ground for expecting that its No. 5. - 2,988 +13, 510 availability for these purposes will not continue. No. 6. +10, 289 - 834 The present improved credit situation is due in No. 7. +27, 768 + 4,850 part to the timely steps taken last spring, fol- No. 8. - 8,829 +13,711 No. 9. + 1,736 + 3,768 lowing conferences between the Board and gov- No. 10 + 289 - 3,878 ernors and directors of Federal Reserve Banks No. 11 - 5,568 + 7,131 to provide credit for crop-moving requirements, No. 12 + 3,339 +25,910 and in part to the subsequent improvement in transportation reported from all districts, except in a few localities. On the other hand, the following changes JBetween January 2 and October 1 of the have occurred during the period from July 2 present year about 800 leading member banks to October 8 in the condition of the member irom all sections of the country, which report banks in 100 selected cities which report weekly their condition to the Board weekly and which to the Board: represent approximately 70 per cent of member bank resources, have increased their loans for [Amounts in thousands of dollars.] agricultural, industrial, and commercial pur- [Increase or decrease indicated by + or — sign.] poses by an amount exceeding $1,800,000,000. This great increase in the credit extended to Loans se- their customers has in the main been made cured by possible by the accommodation extended mem- Loans and bonds, in i v n e c s l t u m di e n n g ts, B an il d ls b p i a ll y s a r b e l - e s ( t e o x c c k l s u , s i e v t e c. ber banks by the Federal Reserve Banks. District. rediscounts Ne d t e p d o em sit a s n . d w d i i t s h c o F u e n d t e e r d al of loans During the same period the twelve Federal with Federal Reserve secured by Reserve Banks have increased their holdings Reserve Banks. United Banks. States of agricultural and commercial paper by more war obligations). than $500,000,000, and from January 23 to October 1, 1920, increased their issues of Federal Reserve notes by over $460,000,000. At No. 1 + 17,182 - 11,352 - 8,550 + 2,487 No. 2 +119,233 -270,047 + 151,437 -23,114 the same time Federal Reserve Banks having No. 3 - 5,405 + 15,358 - 34,650 +11,692 surplus funds have extended accommodation to No. 4 + 39,874 + 55,370 - 39,479 -10,904 Federal Reserve Banks in agricultural and live- No. 5 16,307 + 7,219 + 2,335 + 3,499 stock districts by means of discounts, aggre- No. 6 + 23,476 - 14,411 + 31,594 + 1,608 No. 7 - 4,572 - 23,287 + 16,432 -16,891 gating on October 1 over $225,000,000. No. 8 + 1,429 - 5,427 + 12,592 - 1,729 The disturbances in price and demand which No. 9 + 4,490 - 19,920 + 9,621 + 238 have recently manifested themselves in mar- No. 10 + 14,122 - 25,787 + 17,025 + 1,467 kets for various agricultural and other com- No. 11 + 21,205 + 5,152 + 14,779 + 1,230 No.12 + 16,201 + 13,171 + 20,146 + 2,102 modities, not only in the United States but in other countries as well, are inevitable and un- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

NOVEMBER, 1920. FEDERAL RESERVE BIT JETIN. 1125 avoidable consequences of the economic de- as to the loans which member or nonmenber rangements occasioned by the World War. The banks may make or decline to make, or the United States continues to have a heavy rates at which they extend their accommodavolume of exports, although foreign demand for tion to customers. * * * All the authoricertain agricultural staples has somewhat de- ties of the Federal Reserve System, including creased. But the chief market for our raw and the member banks, have a keen and sympamanufactured products is at home, and our thetic appreciation of the difficult problem. present huge crops of immense value may be They will, in my judgment, do everything in expected gradually and in regular course to their power to promote the orderly distribution move from producers to consumers. The re- of products, and I believe that they will succent census, reckoning our population at 105,- ceed,'although not to the satisfaction of every 000,000, emphasizes anew our own capacity as individual. Facts widely published and well consumers, irrespective of the demands of other known to you evidence this disposition and countries. they refute the assertion that there has been a contraction of credits." An important feature of the meeting of the „ , American Bankers Association, The substantial agricultural yields which . American Bank- , . , , . „ , . , 7 had been forecast at the openers Association. wmch occurred m Washington Production and ing of October have been in on October 19-25, was the trade. process of realization in most statement contained in the address of the parts of the country. Business in most sec- Secretary of the Treasury already referred to, tions has continued upon a fairly active basis, in which he outlined the general position although there has been in some parts of the assumed by the department in conjunction country and in sundry lines of manufacturing with the Federal Reserve Board with reference industry a sporadic shrinkage or change in to the extension of credit for the accommothe volume of production. The Board's prodation of various branches of industry. On duction statistics for the month show the this subject the Secretary said: following results: "The Treasury has no money to lend and no money to deposit except for Government pur- Aug., 1920. Sept., 1920. Sept., 1919. poses. It is not in the banking business and should not be. It is borrowing money periodically to meet current obligations in the inter- Total. R ti e v l e a . - Total. R ti e v l e a . - Total. R ti e v l e a . vals between large tax payments, at a cost of about 6 per cent. On several occasions before Receipts of live stock at 15 western marthe Federal Reserve System was instituted the kets (in thousands Secretary of the Treasury, at a time when the of head) 5,022 76.6 5,266 80.3 6,555 100 Receipts of grain at Treasury had a surplus, did deposit small sums 17 interior centers (in thousands of of money in banks in various sections of the bushels) 89,807 72.6 110,111 89.0 123,682 100 country to meet emergencies; but this necessity Sight receipts of cotton (in thousands is obviated by reason of the existence and prac- of bales) 305 48.2 762 120.4 633 100 Shipments of lumber' tices of the Federal Reserve System, and it is reported by 3 assointeresting to note that at this time Reserve ciations (in millions of feet) 784 101.4 716 92.6 773 100 Banks in certain sections of the country are Bituminous coal production (in thourediscounting for banks in crop-moving sec- sands of short tons). 48,389 102.1 51,093 107.8 47,402 100 tions approximately six times as much as was Anthracite coal production (in thouever deposited for crop-moving purposes by the sands of short tons). 7,332 100.0 5,125 69.9 7,333 100 Crude petroleum pro- Secretary of the Treasury. * * * From duction (in thouthe member and nonmember banks of the sands of barrels) 39,397 117.0 37,845 112.4 33,667 100 Pig iron production Nation, aided by the wise action of the Federal (in thousands of Reserve Banks, must relief be sought and fur- St l e o e n l g t i o n n g s o ) t produc- 3,147 126.5 3,129 125.8 2,488 100 nished. The Federal Reserve Board can not tion (in thousands of long tons) 3,000 3,000 furnish it. It has no lending power and no Cotton consumption (in thousands of money to lend. It is a supervisory body and bales) 483 98.4 458 93.3 491 100 not a bank. The Federal Reserve Banks have Wool consumption (in thousands of no money to lend to individuals, but can assist pounds) 32,850 62.0 30,928 58.4 52,986 100 in the creation of credit through the rediscount of eligible paper from banks. Neither the With respect to retail trade conditions, the Board nor the Reserve Bank has any discretion monthly tabulations, published elsewhere in Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1126 FEDERAL RESERVE TUTT,T,WTTTTt NOVEMBER, 1920. this issue, show that demand has been tol- decline in the number of men employed, erably maintained. This reflects the large pro- partly due to rearrangements and economies duction of primary wealth growing out of the of staff but partly also to a rather lower intenheavy crop yield in nearly all parts of the sity of transportation demand. This situation country. While it is true that in some parts has, however, tended to further the process of of the country there has been a retardation of securing a better movement of freight and a the movement of crops to market, partly due reduction of congestion on railways. Goods to the continuation of rather unsatisfactory have been shipped more steadily and in much transportation conditions and partly to the larger volume to points of destination, and disposition on the part of some groups of there is less accumulation of goods awaiting producers to hold back their goods in the hope shipment at the primary points of distribuof higher prices, these influences have been tion. All of these factors have combined to sporadic and do not represent any general produce a better balance between production check of the movement of goods to market. and consumption and a more effective dis- On the contrary, as already noted, the trans- tribution of output both geographically and portation outlook has shown very decided between the varying branches of trade and improvement, taking the country as a whole, industry. and the congestion of agricultural products in The factors which have made in an important warehouses at distributing points has in some way for progress in readjustment during the measure at least been reduced. month of October have been seen in the in- Business conditions during the month con- vestment market in a growing and considertinued to exhibit a transitional ably more active investment demand for The business , ^n • xi j« securities of all descriptions. One effect of .. ,. aspect. Changes in the directhis demand has already been that of materially situation. . . -I . -i advancing the quotations of Liberty bonds by tion of production have already an average of about 1^- points during the month. been referred to. The employment index of In corporate bonds the tendency toward adthe Bureau of Labor shows a shifting of men vancing prices has been even more marked, between industries, which indicates a redisowing to the considerably larger demand for tribution of demand and leaves the net situathem by individuals with savings which they tion somewhat in doubt. In the steel trade, desire to place. Especially noteworthy has despite some decline in unfilled orders, indusbeen the advance in the price of railroad bonds, trial leaders look forward to prosperous consome issues which previously sold upon an ditions and predict only a wholesome and reaexceptionally low basis of value being in special sonable readjustment. In other lines of trade request for investment purposes. Until rethere is some uncertainty and maladjustment of cently there was also to be included among the demand and supply. This situation is seen in factors which have been tending to work particular in the textile industry, where some toward more normal conditions the approach mills have either closed down or are working on to a more normal relationship between the part-time schedule. In the agricultural rehome and foreign trade and .the equalization of gions, on the other hand, the large crop yields exports and imports in this country, coupled have served to emphasize the problem of with the growth of exporting power in other marketing and have taken a position by countries. The British coal strike inaugurated the side of the industrial situation in the on October 18 and the troubles preceding it public mind. This process of industrial constitute a notable movement of reaction and commercial readjustment is reflectagainst the tendency toward improvement in ed in the relative decline of exportation. export power abroad and had the strike con- Coupled with the comparative falling off in tinued long would have gone far toward exports there has also come a somewhat lesneutralizing the improvement already gained. sened necessity for transportation. On a number of railroads there has been a reported Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

NOVEMBER, 1920. FEDERAL RESERVE BUI^LETIF. 1127 The decline in the prices of building materials, placing of goods and accumulated stocks upon which has been in evidence in most parts of the a banking basis corresponding to the new level country and in many lines of production, should of prices which has been established. It may tend to stimulate the resumption of building be expected that, as older accumulations are operations upon a larger scale. Thus far, how- disposed of and new goods at the revised price ever, the actual issue of building permits has levels take their places, a more normal situanot shown the effects of this influence. tion will gradually develop. The price movement during the month of During the month of August the favorable October has been of exceptional trade balance of the United p r k e st € r e s t- On the whole> while situatkT States fel1 t0 $65,000,000. By the price movement in the some observers it was believed United States has continued downward, it that this reduction indicated a distinct turn would seem that in some foreign countries the of the tide toward a more evenly balanced tendency toward reduction which had gained relationship between export and import. Sepground during recent months had been checked. tember figures made public on October 26 The following table of index numbers continues now show that this expectation has been that previously furnished in the issue of August disappointed. The exports in September for some of the principal countries. amounted to $605,000,000, against $579,000,000 in August of this year and $595,000,000 in Wholesale price indexes. September of last year. For the nine months' [Average prices 1913= 100.] period ended with September, 1920, the exports were $6,081,000,000, as compared with Sept., Apr., May, Aug., Sept., $5,867,000,000 for last year. The September 1919. 1920. 1920. 1920. 1920. imports amounted to $364,000,000 against United States, Federal Re- $514,000,000 in August, 1920, and $435,000,000 serve Board index 211 263 264 234 226 United Kingdom, Statist in- in September, 1919. The pronounced drop of dex . 252 313 305 298 292 France . 360 584 550 501 526 over $150,000,000 in the imports of September Italy 370 679 659 632 660 Sweden.. .... 319 354 361 365 362 of this year as compared with August is ac- Canada 223 261 263 244 241 Japan.. 257 300 272 235 230 counted for to the extent of only about one- India 200 200 210 209 208 Australia - 185 217 225 236 230 tenth by diminished importations from Europe; it is mainly accounted for by diminished im- For September the Board's price index shows portations from North America, Cuba, and a decline of 3.4 per cent, while that of Sauer- Asia, sugar alone accounting for almost fivebeck indicates a fall in British prices of 2 per tenths of the total decline noted, and rubber, cent, that of the Economist pointing to a reduc- coffee, silk, and hides and skins for two-tenths. tion of 1.3 per cent. The excess of merchandise exports over im- In studying agricultural prices it should be ports for September, 1920, was $242,000,000, noted that they show the effects of excep- as against $65,000,000 for August, 1920, and tionally large production or output in various $160,000,000 for September, 1919. For the lines and that this exercises a special influence nine months' period ended with September of in their case, which is hardly to be given the this year the imports were $4,358,000,000, same amount or kind of weight in dealing with against $2,697,000,000 during the correspondretail or wholesale prices of manufactured or ing period last year. The imports of gold in prepared goods. On the whole, however, the September amounted to $39,000,000 and exprice level has apparently approached a rela- ceeded those for August by $24,000,000. For itvely greater degree of stability than it had the nine months ended September of this year possessed during September, and to that extent the imports of gold amounted to $199,000,00,0 indicates a further progress toward a condition compared with $56,000,000 in the same period of readjustment. The problem of complete of last year. Exports of gold during Septemfinancial readjustment now centers around the ber totaled $17,000,000, while gold exports for Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1128 FEDERAL RESERVE BULLETIN. NOVEMBER, 1920. the nine months ending September were paratively narrow limits and has shown little $259,000,000, leaving a net balance of $60,-ability to gain ground, while the Continental 000,000 exported during the'period. Since the currencies have been almost continuously weak. publication of the Board's estimate in Septem- The following table presents the situation of the ber that there was a favorable unfunded bal- principal exchange quotations during the period ance growing out of our post-armistice trade in question: with the world at large, and amounting to $3,000,000,000 or upward, other investigators Week ending— have pursued studies relating to the same sub- Oct. 2,1920. Oct. 9, 1920. ject. Data for the precise determination of the balance are, as was explained in the BULLETIN High. Low. High. Low. at the time, not likely to be fully available in the near future. This is due to the unavoid- England 3.501 3.51| 3.48 France 6.74* 6!63| 6.70 6.64 able presence of conjectural elements in any Italy 4.201 4.121 3.89^ Spain 14.72 14!642 14.65 14.64 such trade balance. It is, therefore, of interest Argentina 37.50 36.00 36.625 36.25 China (Hongkong).. 76.00 75.50 75.00 72.75 to note that the other compilations to which China (Shanghai)... 107.00 106.00 104.00 100.00 Japan (Yokohama).. 51.125 51.125 51.125 51.00 reference has just been made have afforded an Germany 1.65 1.63 1.65 1.59 Switzerland 16.07 15.97 16.02 16.00 even larger figure than that which was put for- Sweden (Stockholm) 20.20 19.80 20.00 19.85 Holland 31.125 30.9375 31.05 31.00 ward in the September issue. A recent esti- Belgium 7.09J 7.03 7.08 mate has placed the balance due to the United Week ending— States from the European countries alone at not less than $3,500,000,000 and probably Oct. 16,1920. Oct. 23, 1920. Oct. 30,1920. nearly $300,000,000 more than that. The development of trade since these figures High. Low. High. Low. High. Low. and those of the Board previously published England 3.46 3.45J 3.401 3.48| 3.43i were prepared has shown a further growth in France 6.481 6.51 6.40 6.46^ 6.30 Italy 4! oo^ 3.91 3.85J 3.75J 3.77f 3.69J the unfunded balance due to the United States Spain 14.50 14.36 14.24 14.10 14.08 13.65 Argentina 36.50 36.25 35.50 34.75 35.125 35.00 from Europe, owing to the renewed exporta- China (Hongkong).. 73.50 72.00 71.00 69.00 70.00 69.50 China (Shanghai)...101.00 97.00 96.00 94.00 94.00 94.00 tion of our agricultural and other staple pro- Japan (Yokohama).. 51.125 51.00 51.125 51.00 51.00 50.875 Germany 1.55 1.44 1.46 1.42i 1.44 1.301 ducts. The rate of this growth, until recently, Switzerland 15.94 15.87 15.79 15.74 15.88 15.64 Sweden (Stockholm) 19.65 19.55 19.80 19.55 19.42 19.30 was smaller than at any time since the armis- Holland 30.875 30.85 30.875 30.65 30.65 30.36 Belgium 6.95i 6.84 6.84 6.81* 6.84 6.67 tice, due to the larger volume of importations. This does not alter the fact that a great body of In the oriental field the important influence obligations due to the United States is being of the month has been the decline in the price carried upon the books of foreign banks and of silver, which has undoubtedly operated business houses and that as a result the ex- powerfully to unsettle Eastern exchange quotachange situation will necessarily continue for a tions. As shown by the Eastern currencies good while to come to be a subject of interest, which are cited in the foregoing table, the while fluctuations in the exchanges may at any falling off has been practically continuous time be severe because of the large unfunded throughout the month. With these quotabalance of indebtedness which overhangs the tions, however, may to advantage be compared market. The influence of this condition of the price of silver on corresponding dates affairs has been clearly seen in the sensitiveness during October, which may be presented as of exchange during the past month or two, it follows: being evident at times that an upward move- Silver in New York. ment of quotations could not long maintain Week ending- High. Low. itself because of the disposition of owners of foreign balances to dispose of them whenever Cents. Cents. October 2 93 914 improved conditions seem to offer a prospect of October 9 October 16 878 821 a better return. As a result sterling exchange October 23 80| 76J October 30 801 791 has fluctuated during the month within com- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

NOVEMBER, 1920. FEDERAL RESERVE BULLETIN. 1129 In connection with the exchange situation, liquid capital. It was an international clearing attention has been largely con- of obligations which, except in so far as actual i? \ n.g.x?" centrated upon the settlement gold moved from one country to another, left French maturities. - ,, A i -^ i i matters as they were before. In the opinion oi the Anglo-French loan, of not a few capable students of the situation amounting to $500,000,000, which fell due on it was much to be desired that this process of October 15. This large settlement had apparsubstitution or mutual cancellation of credits ently no direct effect upon the money market might have been brought about in a degree of the month, because of the elaborate prepsufficient to avoid any movement of specie. arations which had been carefully made for Be this as it may, it is undoubtedly true that many weeks preceding on behalf both of the the preparation for meeting the maturity of British and of the French Governments. In these bonds had an important influence in preparation for the settlement of the bonds preventing an advance in sterling and francs the French Government placed in the New in the New York market which otherwise York market a loan of $100,000,000, while might have occurred. The demand for dollars there had been imported and deposited in the which originated with the British and French Federal Reserve Bank during the preceding Governments in order to provide funds for weeks considerable quantities of gold. There making the adjustment tended to further the remains of the $500,000,000 which was due a fall in the value of the pound sterling which substantial sum which had to be provided for had brought that currency down to a point by the accumulation of dollar balances through but little higher than $3.40. purchase of exchange or by the sale of securities in the American market. It is around the The financial conference, including representlatter point that much of the interest involved atives of some forty nations, The Brussels in this transaction centers. When analyzed which convened at Brussels on conference. it appears that the operation amounted largely September 22 and the following to a mere shifting of credits. American inves- days, and which continued its activity with tors who previously held bonds of the Anglo- intervals up to October 9, resulted in a French loan surrendered these bonds and thorough canvassing of the general financial received in exchange new bonds issued by the and banking situation as it exists in the prin- French Government or else were paid in cash cipal countries of Europe at the present time. realized by the debtor Governments under the The work of the conference clearly showed that loan, or from the sales in our market of stocks there is no general remedy which can be apand bonds of American corporations which had plied to the solution of foreign exchange probhitherto been held by their nationals. The lems at the present moment, but that, as has rearrangement of obligations resulting from been believed by most persons, the eventual this method of settlement amounted in one adjustment of existing conditions will be atsense to a "cancellation" of debt directly tained only through the slow process of saving owed by the British and French Governments and reinvesting capital. It probably accomto American citizens through the medium of a plished all that could reasonably be expected, change in ownership which resulted in can- since it made a beginning of harmonious disceling the debt owed by American citizens cussion and cooperation between the nations and American enterprises to English and concerned. As concrete suggestions, however, French investors. The absorption of these the conference recommended consideration of obligations by American investors, however, the pooling of the gold and credit resources of amounted to a demand upon this market for the participating countries in a general fund an equivalent amount of capital which would whose resources shall be used in effecting the have been rendered available here had the exchanges upon some common basis or unit of loan been paid in some other form. The pay- interchange, while valuable detailed suggestions ment of the loan by means of such a redistri- are made as to uniformity in bills of exchange, bution of claims was thus to be viewed as an reciprocity of treatment in regard to branch indirect or potential draft upon our supply of banks in different countries, and a variety of Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1130 FEDERAL RESERVE BULLETIN. NOVEMBER, 1920. others. So far as immediate action is con- tive measures suitable for attaining the end in cerned, the conference thus results chiefly in view in each of the countries interested.'7 the recommendation that as soon as possible a The committee on international credits also body of competent business men shall be con- states that' 'the outstanding financial questions vened to discuss on behalf of the participating resulting from the war must be made the subnations the conditions under which the sug- ject of definite settlement and put into execugested plan of central organization or "pool- tion. Finances can be restored, but the revival ing" may be put into operation. What could of credits requires these primary conditions— be done with reference to such a suggestion the restoration of order in public finances, would doubtless depend in no small degree on purging of. currencies, and freedom of comthe form in which it might be presented and mercial transactions." the character of the details with which it was The conference, however, has been of very worked out. Although the Brussels conference considerable interest as affordhas thus laid the foundation for future discus- foreconfetJT inS a forum of discussion and sion, it has apparently done little more than thus as tending to analyze and that. The United States was not officially rectify the ideas of those in attendance. Of represented at the conference, but it was in the many and various proposals brought before touch with the work undertaken there through the organization four general groups stand an unofficial representative, Mr. Roland W. out prominently. Of these the first is repre- Boyden, who presented the views of the United sented and characterized by the proposal of States at one or two sessions. In so doing Mr. M. Delacroix, Belgian Prime Minister and Min- Boyden called attention to the principles laid ister of Finance, for the establishment of an down in the letter which Secretary of the international bank. Such a bank would be Treasury Glass issued in February, 1919, outdesigned to promote the international developlining the policy of the United States with ment of credit. On presenting it, M. Delacroix respect to further advances to European countries. "* * * it is urgent, indeed essential, to In closing, the conference adopted a resoluset up an international bank of issue, in which tion which, as reported by cable, sketches the all States, without distinction, would be repregeneral credit situation and recommends the sented, and which would be managed by a comadoption of a plan for the extension on an mittee consisting of a number of delegates. international basis of a system guaranteeing The objects of this bank would be to issue interest-bearing gold bonds in exchange for credits for exports. This was in accord with genuine securities. The committee 01 this the recommendation of the committee on bank would decide in each case whether the credits. The committee also favored plans securities offered were satisfactory; only after whereby raw materials in process of being thorough investigation of the proposed guarworked up into completed products would antees would it consent to issue to any State requesting a loan, bonds to the value of these serve as security for advances either by the securities. The guarantees would involve, in banker or exporter, the proceeds of the sale of certain cases, a direct control over the yield the manufactured article going first to the obtained from the securities. repayment of the credit. " The situation is so critical in certain parts "Realization of this system," says the reso- of Europe that common humanity calls for intervention and for loans to prevent the populution, "has met with serious obstacles in lations dying of want. Yet these countries in many countries by reason of the absence of nearly every case still possess resources which legislation adequately protecting the exporter they can not immediately make use of. during the stages of import, manufacture, re- "The bank of issue would give them the export, and sale. The committee recommends means of using these assets, during a period to that the council of the league draw attention be defined, and would permit them to obtain at once the funds necessary to buy essential of the various governments to this question supplies. and that it intrust to a committee of legal and "There are some States, especially in Europe, business experts the task of proposing legisla- whose financial resources are at an end, but Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

NOVEMBER, 1920. FEDERAL RESERVE BULLETIN. who, nevertheless, possess considerable natural sion States are reestablished, and this can only wealth. The international bank, by means of be brought about by a powerful combine which the financial control which it would introduce, can hold out the bait of a certain supply of raw would be the means of saving them from ruin." materials, on the condition that all restrictions which might prejudice the successful working of A second group of plans before the conference the business be removed." . had for object the establishment credit 1On °^ a stea(ty fl°w °f capital and Third among the general groups of plans offered are to be classed the various business credit into the European Control of nations most seriously embarrassed and injured schemes for an international conexchange. by the war. Of these probably the best repre- trol and organization of exchange. sentative was the plan of Herr Meinl, put One of the representative examples of such forward especially for the purpose of restor- a plan for exchange control is seen in the ing business in Austria, although the same ma- proposal for an "International Valuta Assochinery would hold good for other nations if ciation" put forward by the Swiss League for desired. This plan contemplated the organiza- Free Economy. According to this the chief tion of an international syndicate for the pur- elements in the plan for a uniform standard of pose of building up trade. value would be as follows: "The business of the syndicate would be (1) Countries desiring to join the Interconfined to that of investigating, organizing, national Currency Stabilization Association and controlling the transactions entered into (International Valuta Association "Iva")> • by the participants. It would be empowered adopt the "Iva" unit of currency standard. by the participants to act as security holder (2) The monetary systems of the Iva counin much the same way as a local agent or banker tries remain national, but are based on unified acted formerly, only in this case it would repre- principles, valid in all circumstances and for all sent the joint and several interests of all the stages of development. participants. The latter might either take the (3) This unified national currency policy reinitiative themselves in entering into transac- moves the chief cause of disturbances in the tions or leave it to the syndicate to make pro- balance of trade and of the resulting fluctuaposals and recommendations. tions of the exchanges. "The object of combining the representation (4) Small disturbances in the balance of of these interests into one agency is (1) to secure trade, caused, for instance, by the varying greater authority in negotiating with the various yield of harvests, are still possible. (governments and business groups in Austria; (5) To eliminate completely the effect of (2) to insure the cooperation of prewar credi- these disturbances upon the exchanges, a tors with the new interests. This is most im- special international note is issued, guaranteed portant, and satisfactory arrangements for the by all the Iva States, which is imported and settlement of these debts would be an essential exported without hindrance by all the counpreliminary to any new business. tries of the Association and is recognized by "The participants in the syndicate will be them as legal tender at par with the national free to accept or refuse any proposed business, currency. and if they accept they may do so on any lines (6) This international note is issued at a they choose and not only on those recommended center—the Iva Office at Berne—to the counby the syndicate, but in order to secure for the tries of the Association and under their supersyndicate the necessary authority in conducting vision. . The notes are issued free of cost, except negotiations, it would be desirable that partici- for the expense of printing and administration. pants should intrust the syndicate with the (7) The quantity of Iva notes is determined widest possible powers to act on their behalf. solely by their regulating effect upon the ex- "The participants would make their own changes, about 20 per cent of the national financial arrangements, as it is not proposed that issues being required for this purpose. the syndicate should have a large capital such as would be required for the giving of credits. Finally, there was before the conference a The capital of the syndicate would be limited to group of proposals based on the what is required for the expenses of manage- Guarantee ^ ^ g t d international ment. ft Uaran ee loan. The suggestion oi M. " The economic revival of the countries of the TerMeulen, of Holland, was possibly the most former dual monarchy is only possible if economic union and free traffic between the succes- interesting of the proposals in this group. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1132 FEDERAL RESERVE BULLETIH. NOVEMBEB, 1920. M. TerMeulen recommended that any govern- aspect the Brussels conference has merely rement whose citizens have found themselves sulted in a new demonstration that far greater unable, because of disturbed economic con- effort to equalize budgets and to develop a ditions, to get raw material on personal credit system of taxation that will provide for meetmay segregate certain assets or revenues and ing expenditures will be essential as a condition that against these such a government may issue of financial settlement prior to the adoption bonds. These bonds would then be given to of any international plan either of currency the citizens who had put up the security for use issue or of refunding. It is worthy of note, as collateral in obtaining credit for importation also, that the conference was greatly handiof goods. Such transactions would be required capped from the very start by the fact that to meet the approval of the government con- there had been no earlier attempt to fix the cerned, while all such transactions would be amount and terms of the German indemnity. approved by a central commission acting under There was on the whole throughout the Brusthe direction of the League of Nations. sels conference a more general recognition than One set of facts developed at the Brussels might have been expected of the fact that the conference which has thrown United States can not finance the whole world situation? financial valuable light upon the problem and that the various countries must first of all of financial reconstruction m help themselves. Europe is seen in the statements filed by the During the month ending October 10 the various countries with respect to their financial net inward movement of gold position. The bulk of the information fur- mo^emente.811'6' was $56,503,000, as compared nished was already common property, although with a net outward movement the Brussels conference succeeded in develop- of $9,342,000 for the month ending Septeming some information which is relatively new. ber 10. Net imports of gold since August 1, What chiefly stands out as a result of the 1914, were $753,710,000, as may be seen from compilation of these data, however, is the dethe following exhibit: pressed financial prospect and the condition [In thousands of dollars.] of inflation of currency and credit which prevails approximately throughout Europe to-day. Excess of It would appear from the figures made avail- Imports. Exports. im o p v o e r r ts able at the conference that expenditures for exports. military and naval purposes are still on a high level and that in some countries at least the A Ja u n g . . 1 1 t t o o D D e e c c. .3 3 1 1 .1 1 9 9 1 1 5 4 . 4 2 5 3 1 , , 2 95 5 5 3 1 3 0 1 4 , , 4 9 2 7 6 2 1 4 2 8 0 1 , , 5 7 2 1 9 9 development of a system of taxation which is J J a a n n . . 1 1 t t o o D D e e c c . . 3 3 1 1 , , 1 19 9 1 16 7 . . 6 5 8 5 5 3 , , 7 7 4 1 5 3 3 1 7 5 2 5 , , 1 79 7 3 1 5 1 2 8 9 1 , , 9 5 5 4 2 2 adequate to take care of the present volume J J a a n n . . 1 1 t t o o D D e e c c . . 3 3 1 1 , ,1 19 9 1 1 9 8 6 7 1 6 , , 9 5 5 3 0 4 36 4 8 0 , , 1 8 8 4 5 8 129 2 1 1, , 1 6 0 5 2 1 of expenditures has not proceeded very far. Jan.1 to Oct.10,1920 238,715 264,760 126,045 In these circumstances it seems doubtful Total 2,091,865 1,338,155 753,710 whether the immediate future of European 1 Excess of exports over imports. finance and banking is likely to result in very decided progress, least of all in the develop- England furnished $51,161,000, or over 70 ment of a condition of affairs that will permit per cent, and France $14,843,000 of the the early settlement or adjustment, much less $72,981,000 of gold imported during the cancellation, of any considerable fraction of monthly period ending October 10; Argentina, the indebtedness now outstanding. The plan Russia in Europe, Canada, and Colombia to have Great Britain cancel its claims upon furnishing most of the remainder. Of the France, while the United States in turn cancels gold exports, amounting to $16,478,000, over an equal amount of claims upon Great Britain one-half, or $8,398,000, was consigned to and accepts in lieu thereof a share in the Japan, $5,000,000 to China, $1,439,000 to German indemnity, was not officially proposed Hongkong, and the remainder principally to but evidently reappeared as an element in Mexico and Canada. Since the removal of the discussions, at least unofficially. In this the gold embargo on June 9, 1919, total gold Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

NOVEMBER, 1920. FEDERAL BESERVE BULLETIN". 1133 exports have amounted to approximately securities—apparently the result of the calling $618,556,000. Of this total, $146,555,000 was of street loans in anticipation of the redempconsigned to Argentina, $146,465,000 to tion of the Anglo-French bonds by the fiscal Japan, $68,728,000 to Hongkong, $64,396,000 agents of the respective Governments and the to China, $40,804,000 to British India, $29,- assumption of a large portion of these loans by 778,000 to Spain, and the remainder principally reporting members in Boston and New York to Mexico, Uruguay, the Dutch East Indies, City. Loans secured by Government war the Straits Settlements, Canada, and Vene- obligations declined by about 32 millions, while zuela. other loans and investments, composed largely During the same monthly period the net of commercial loans and discounts, show an inward movement of silver was $1,308,000, increase of 191 millions. In consequence of the as compared with a net outward movement of above changes, loans and investments of all $1,765,000 for the month ending September 10. reporting institutions on October 15 were Net exports of silver since August 1, 1914, 226 millions larger than four weeks before, the were $454,289,000, as may be seen from the corresponding increase for the New York City following exhibit: memberbanks being 92 millions. Accommodation of reporting member banks at the Federal [In thousands of dollars.] Reserve Banks shows an increase for the period from 1,972 millions to 2,249 millions, repre- Excess of senting 11.6 and 13 per cent, respectively, of Imports. Exports. exports over the banks' total loans and investments. For the imports. member banks in New York City an increase Aug. 1 to Dec. 31, 1914 12,129 22,182 10,053 in this ratio from 11.7 to 14.6 per cent is noted. Jan. 1 to Dec. 31, 1915 34,484 53,599 19,115 Jan. 1 to Dec. 31, 1916 32,263 70,595 38,332 For the four weeks between September 24 Jan. 1 to Dec. 31, 1917 53,340 84,131 30,791 Jan. 1 to Dec. 31,1918 : 71,376 252,846 181,470 and October 22 the Federal Reserve Banks Jan. 1 to Dec. 31,1919 89,410 239,021 149,611 Jan. 1 to Oct. 10,1920 75,211 100,128 24,917 report a decrease of over 21 millions in their Total 368,213 822,502 454,289 holdings of bills secured by United States war obligations and Treasury certificates (so-called Mexico furnished $4,395,000, or about 68 war paper) and an increase of 66 millions in per cent, of the $6,477,000 of silver imported the holdings of other discounted paper, the during the monthly period ending October 10, share of war paper in the total discounts held most of the remainder coming from Peru, showing, in consequence, a further decline to Chile, Canada, and Honduras. Of the silver less than 44 per cent. Holdings of acceptances exports, amounting to $5,169,000, about two- purchased in open market declined by 7 milthirds, or $3,434,000, was consigned to China, lions, while Treasury certificates on hand show and the remainder principally to Hongkong, an increase from 271 millions on September 24 Japan, Cuba, Canada, and Mexico. to 302 millions on October 15, when six of the Continued loan expansion, accompanied by Federal Reserve Banks held 26 millions of a more than commensurate in- special certificates to cover temporary advances situat?onbanking crease in borrowings from the to the Government. By the following Friday Federal Reserve Banks, is indi- the amount of such special certificates had decated by the weekly condition statements of clined to 10 millions held by four Federal about 820 member banks in leading cities. Reserve Banks, while the total amount of Holdings of United States bonds and Victory Treasury certificates held by the Federal Renotes show but nominal changes, while those serve Banks had declined to 281 millions. of Treasury certificates declined by about Interbank discounting shows further growth 54 millions between September 17 and October in volume, the total of paper held under dis- 15, notwithstanding the considerable increase in count for other Federal Reserve Banks showthis item shown on the latter date. A notable ing an increase from 226.9 to 243.1 millions, development during the period is the increase reported by the Boston, Philadelphia, and by 123 millions in loans supported by corporate Cleveland banks. The latter bank on October Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1134 RESERVE BULLETIN. NOVEMBER, 1920. 22 reports a total of 137.9 millions of paper England since September of last year. Total discounted for other Federal Reserve Banks, gold reserves show a gain for the period of 4.8 compared with 79.3 millions of paper held millions, while total cash reserves show a under discount for its own members, while slightly larger gain of 5.7 millions. over 40 per cent of the Boston bank's discounts The banks' reserve ratio declined almost concarried on the same date was for other Federal tinuously, from 43.6 per cent on September Reserve Banks. At the close of the period 24 to 42.7 per cent on October 15. On the under review the list of accommodated Fed- following Friday, largely because of the liquieral Reserve Banks includes, besides the seven dation in some volume of bills and Treasury banks in the South and Middle West shown, certificates and a corresponding reduction in the month before, also the New York bank. deposit liabilities, the ratio shows a rise to 43.3 Interbank accommodation through the pur- per cent. chase of acceptances is reported by the Boston, The Federal Reserve Board, on October 14, Philadelphia, and San Francisco banks, their made the following announceaggregate holdings of such paper on October Personnel. ment of changes in its staff: 22 being 24.3 millions, all acquired from the Mr. W. T. Chapman, secretary, has resigned, New York bank. effective November 1, 1920. Mr. W. W. Hox- Net deposits increased from 1,658 millions on ton, executive secretary of the Board, has September 24 to 1,710 millions on October 8, been appointed secretary, effective November but declined to 1,624 millions during the fol- 1, 1920, and has been designated acting secrelowing two weeks. Federal Reserve note cir- tary for the period October 16 to November 1. culation shows a further expansion during Mr. R. G. Emerson, assistant secretary of the the four weeks from 3,280 millions to 3,356 Board, has been appointed assistant to the millions, or at an average weekly rate of over 19 governor, effective October 16, 1920. Mr. millions, substantial increases in the circulation Walter L. Eddy has been appointed assistant reported by the New York and Atlanta banks secretary of the Board, effective October 16, being due partly to shipments to Cuba of new- 1920. Mr. James F. Herson, chief Federal ly issued notes. reserve examiner of the Board, has been ap- The amount of gold held with foreign agencies pointed chief of the Division of Examination, shows a decline for the period from 111.5 to succeeding Mr. W. W. Paddock, resigned. Mr. 80.4 millions, as a result of physical transfer Herson will have the dual titles of chief Fedto the Federal Reserve Banks of part of the eral reserve examiner and chief of the Divigold held earmarked for them by the Bank of sion of Examination. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

NOVEMBEK, 1920. FEDERAL EESEEVE BULLETIN. 1135 BUSINESS, INDUSTRY, AND FINANCE, OCTOBER, 1920. October has been a month of continued District No. 3 (Philadelphia) states that transition in business. Economic and business there is a diminution in demand for goods and readjustment, which has been much in evidence that little new business is being booked. in recent months, is still in process. The fac- Fluctuation of prices has interfered with the tors involved in the present readjustment restoration of stable business conditions. process are essentially the same as those which District No. 5 (Richmond) states that the have been, observed and noted in the past in price recession movement has broadened and periods of acute transition, and include, con- that, due to this situation and its extension to spicuously, price changes, uncertainty regard- farm products, there has been some hesitation ing future market conditions, and slackening in business. or suspension of activity in important lines of In district No. 6 (Atlanta) there is active industry. In a national survey of conditions, retail trade, but the crop outlook has become however, it may fairly be said that the eco- less favorable for certain products, while varianomic and business situation in the United tion in lumber prices has been reduced to a States is showing much inherent strength and minimum and coal and iron are somewhat an ability to attain a position of relative sta- harassed by strike conditions. bility through an orderly transition. Con- In district No. 7 (Chicago) the business sitsidering the industrial dislocations, the com- uation is still confused by countercurrents of mercial disorganization, and the financial de- opinion, with buying somewhat restricted and rangements occasioned by the Great War price readjustments presenting some problems everywhere throughout the world in one degree to be overcome by producers and traders. or another, recovery and restoration are pro- District No. 8 (St. Louis) finds fundamental ceeding; apace in the United States, and the conditions satisfactory, but in all lines there is natural forces in evidence which make for hesitancy in purchasing goods for future restabilization carry assurance for the future. quirements. Uncertainty as to future prices Price revisions in textile lines and in other is the chief obstacle in the way of recovery. branches of wearing apparel, as well as in In district No. 9 (Minneapolis) crops are numerous staple commodities, have been the large, grain is moving steadily to market and outstanding elements in the situation, just as railroad efficiency has improved, but there have during the preceding month. Caution in buy- been declines in copper and iron production, ing, due to a belief that price readjustment is in building permits, and in lumber output. not yet complete, has been a noteworthy Crop-moving needs have required large note factor, and in some quarters has tended to issues. slow down the activity of retail trade, although In district No. 10 (Kansas City) price recesmore apparent in wholesale trade. Crop sions and readjustments have been steady but yields have on the whole justified the expecta- without serious disarrangements, while retail tions expressed at the opening of the month. trade and consumption are proceeding quietly Banking reserves have held their own during and the labor outlook is favorable. The coal the month jtnd there has been a steady im- supply is somewhat larger. provement in the liquidity of paper. Labor is In district No. 11 (Dallas) abundant confiless fully employed. Notwithstanding some dence in underlying conditions and in the sporadic cuts in wages here and there the gen- future of trade are expressed, while the seaeral position is about as good as it has been so sonal peak of credit has been passed. There far as actual payments or rates of wages are has been some shrinkage in wholesale trade, concerned. but retail trade is larger, transportation is In district No. 1 (Boston) there is some cur- better, and the labor outlook improved. tailment of production due to the uncertainty In district No. 12 (San Francisco) business of prices, mills in various cases maintaining conditions indicate a period of transition. their lessened schedule of hours. Neverthe- Retail trade is stable, despite a waiting attiless there is a general undercurrent of convic- tude among the public. Good crops have been tion that present conditions are temporary. grown, but in the wool and cotton regions District No. 2 (New York) reports improve- there is dissatisfaction with prices, while lumment in investment outlook, enlargement of ber is in less demand than heretofore. Grain sayings deposits, advance in Liberty bond markets have been sluggish and declining. prices, a broader bill market, better new The agricultural situation may be characfinancing, slow expansion in demand for stocks, terized as one of large yields and falling prices decline in many exports, lower prices, and a for the principal crops, accompanied by a tendency to recession in employment. spirit of dissatisfaction among a large part of Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1136 FEDERAL RESERVE BULLETIN. NOVEMBER, 1920. the farming community, with a disposition October. It is stated that the best tobacco in many cases to hold crops rather than to sell is being purchased freely, but low grades are them at prevailing levels. The Government not in demand. estimate of corn production has been further The Government forecast on October 1 of the increased as of October 1 to 3,216,000,000 yield of cotton for the country as a whole was bushels, which is the largest crop on record. 12,123,000 bales, as compared with a Sep- Some increase in the yield of oats is indicated, tember 1 forecast of 12,783,000 bales. The the estimate now being 1,444,000,000 bushels, deterioration is stated to have been largely but a decrease in the case of spring wheat from the result of the activity of weevils and worms, the September 1 estimate brought the figure following "an unusually wet growin'g season," to 751,000,000 bushels, which is below the although in certain sections, such as Florida, 1919 estimate. Threshing is in progress, and it is ascribed more largely to the adverse seeding is well under way. weather conditions. In many sections there is District No. 9 (Minneapolis) "has produced practically no top crop. Nevertheless, it is the largest corn crop in its history/7 estimated reported from district No. 11 (Dallas) that at over 260,000,000 bushels, and the forecast the "most of the new crop is much superior of the oats crop, 28,000,000 bushels, is also in quality to last year's crop." Fifty-seven large, the combined crops thus being "a more of 76 Texas counties from which data were important factor in the agricultural prosperity obtained, representing 40 per cent of the estiof the West than the total wheat, crop/' which mated total production for the State, report is estimated at only 148,000,000 bushels. marked improvement in the quality of the Conditions in general are reported as favorable 1920 crop. Very little of the early ginnings for fall plowing and seeding. In district No. were withheld from the market, but during 10 (Kansas City) most of the corn was mature October the decline in the price of the staple enough to escape any great damage from the gave "a distinct check to the marketing moveearly frosts during the last week of September. ment." A goodly portion of the South Texas Seeding of winter wheat has progressed rapidly crop was sold before the heavy decline in the under favorable weather and soil conditions. market. Picking has been practically com- Threshing of this year's winter wheat from the pleted in the southern tier of counties in the stack is progressing slowly, while harvesting of district and in the central zone half has been spring wheat w^as generally completed in Colo- gathered, but in the northern tier the crop is rado and Wyoming, and threshing is in progress. about 30 days late, and picking has only "just In district No. 7 (Chicago) "production has fairly started." Little shortage of pickers been stimulated by the seasonable weather is reported. Picking is proceeding well in that has prevailed everywhere, except in most sections of districts Nos. 6 and 8 (Atsouthern Michigan." In district No. 4 (Cleve- lanta and St. Louis). In Mississippi "ginning land) "the agricultural year has been very is slow and farmers generally are holding for favorable/' wheat being the only principal better prices." In district No. 8 the crop crop below the average, but "there is rather a "has moved slowly to date and at a sharp strong undertone of dissatisfaction among reduction in prices." September cotton on farmers at the present time over the price 18 markets in North and South Carolina situation." "Preliminary forecasts of good brought about 7 cents less than- four weeks crops" in district Nc. 12 (San Francisco) previously, but cotton seed brought an aver- "have been justified by the harvest, which is age of $40 a ton as against $30 a month ago. now practically complete." Farmers have In connection with agricultural products, been holding grain for better prices, while however, interest at this season of the year now buyers have been slow to accumulate stocks. centers more largely in the movement of crops A decrease of 75,000,000 pounds from the to market and the prices realized. Grain in September 1 figure brings the October 1 esti- district No. 9 (Minneapolis) is "moving to mate of tobacco production to 1,479,000,000 market more rapidly." It is estimated that pounds. Prospects for the crop in district 38J per cent of the new wheat crop in South r^o. 8 (St. Louis) are reported "fair" and Dakota, 22 per cent in Montana; 21 per cent in "there is less apprehension relative to yield Minnesota, and 20 per cent in North Dakota than to marketing conditions." The tobacco had moved from the farms by October 1, and crop in district No. 5 (Richmond) is estimated shipments from country elevators increased at 22 to 36 per cent larger than last year's because of better railroad conditions. "The yield. LOWT prices at the opening of the mar- movement of grain from the Northwest," says kets caused many farmers to show a strong the Minneapolis report, "may best be measured tendency to hold their crops, but prices ad- by combined grain receipts at Minneapolis and vanced steadily during September and early Duluth. During September these were 37,- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

NOVEMBER, 1920. FEDERAL RESERVE BULLETIN. 1137 336,975 bushels, or double those of August and cent below September, 1919. "Declines in of September, 1919. These figures indicate corn prices were no less remarkable than the that there has been a very satisfactory move- decline in wheat prices.'7 In district No. 11 ment of grain from the Northwest in the month (Dallas) September showed a heavy increased of September, and considering the fact that a wheat movement, and it was estimated that by very large part of the Minneapolis receipts in October 1, 71 per cent of the crop had been August and September, 1919, were made up of marketed. Slow movement of crops is resouthwestern winter wheat, the comparative ported in most of the States of district No. 7 showing for the Northwestern States in the (Chicago). Very little small grain has been total movement for the season since August 1 moved in Iowa, while in Indiana restricted is exceptionally favorable. The wheat receipts transportation facilities and declining markets at Duluth from August 1 to September 30 in- are retarding the movement. cluded 7,564,084 bushels of durum, 2,150,606 Flour production in district No. 9 (Minnebushels of spring wheat, and only 125,720 bush- apolis) during the four weeks ending September els of winter wheat. It is estimated that be- 25 was the same as during the four weeks ending tween 70 and 90 per cent of the durum wheat August 28, although only two-thirds of the produced in this country is exported to Europe. output a year ago. In district No. 10 (Kansas In view of this fact, it is plain that the Euro- City) production during the same period was t pean demand has fixed the durum price, and likewise less than a year ago, although the through the European demand for durum decline was only 25.9 per cent. The latter wheat the price of spring wheat has also been district ascribes the slowing down of milling influenced. The continuous demand of the operations u largely to the general decline of European market for our products is one of the the wheat market late in September and at the most important factors for us to consider now beginning of October.'7 Short patents made in connection with the agricultural and business from hard winter wheat were quoted on Ocsituation in the Northwest. As Europe is still tober 5 at Kansas City at $10.90 to $11.10 per buying very largely with credit, the sale of barrel, as against $12.60 to $12.75 on Septemwheat will inevitably be affected by the degree ber 7. of success attending the purchase of European Live-stock movements are well under the securities in this country.'1 heavy figures of last year, which were swelled "The large production of all crops, the in- by the drought conditions then existing. creased volume of grain receipts, and the diffi- Receipts of cattle at 15 western markets during culties attending the financing of European September were 1,736,009 head, as compared credits in this country have all had their effect with 1,459,565 head during August and 1,871,in depressing the price of the grains. Price 042 head during September, 1919, the respectchanges for the month in grains and flour were ive index numbers being 172, 145, and 186. uniformly downward, as is shown in the follow- Receipts of sheep at the markets during ing table: September were 1,893,312 head, corresponding to an index number of 139, as compared with 1,688,719 head during August, corresponding September daily closing prices. to an index number of 124, and 2,890,831 head Sept. 30. during September, 1919, corresponding to an Aug. 31. High. Low. index number of 212. Receipts of hogs during September amounted to 1,597,622 head, as Cash wheat, Mo. 1 dark northern.$2. 47 -«2. 57 $2. 68J-S2. 751 j$2.35^-$2. 45* $2.35i~$2. 45^compared with 1,818,245 head during August Cash corn, No. 3 yellow 1. 40 - 1. 42 I 1. 36 - 1. 40 | 1.02 - 1. 03 1. 02 - 1.03and 1,704,944 head during September, 1919, Cash oats, No. 2 the respective index numbers being 73, 83, and Fl w ou h r i , t e Washburn .61J- .63}| .61J- .62fj .52J- . 63J . 52|- . 53f 78. "A seasonal increase in the movement of Crosby's Gold Medal,98-pound grass cattle and continued relative scarcity of cotton sacks 13. 50; 12.15 12. 15 corn feds" are reported from Kansas City. Grass-fed cattle were anywhere from $1.50 to The grain markets in district No. 10 (Kansas $3 lower at Kansas City than at the close of City) during September were '' erratic and un- August. The movement of stockers and feedsettled because of wide sweeps in prices, in ers to the country was the heaviest of the year, which wheat, corn, and oats declined to the and materially greater than a year ago. The lowest levels since the war." Due principally light receipt of hogs during September is to a disposition on the part of farmers, as a attributed by stock men in the district to the result of the declines, to hold wheat, Sep- large corn crop. Declines in cattle prices, as tember wheat receipts at markets in the dis- well as in sheep and lambs, were reported trict were 10 per cent below August and 25 per during September. In district No. 11 (Dallas) Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1138 FEDERAL RESERVE BULLETIN. NOVEMBER, 1920. there was a notable increase in the supply of orders, 202,008,000 feet, and cut, 286,440,000 hogs. The cattle market was "weak and list- feet, while the California Redwood Association less." Hogs and sheep were in brisk demand, (10 mills) shows orders amounting to 19,388,000 but at the close of the month the prices of the feet, and a cut of 26,029,000 feet. District former declined as a result of the drop in the No. 9 (Minneapolis) states that returns from a corn market. During September "there were selected list of eight lumber manufacturers heavy runs of grass cattle of mediocre qual- show September shipments and sales about ity," at St. Paul, stockers and feeders moved three-fourths those of August and only slightly to the country in large numbers early in the more than one-half those of September a year month but later decreased, and prices as com- ago. Reduced building activity and lessening pared with August "exhibited mixed tenden- of demand in agricultural regions are the cies." Range and pasture conditions in dis- causes most frequently assigned for the falling trict No. 10 (Kansas City) " are generally excel- off in demand. lent for this season of the year," and all live Production of crude oil in Kansas and Oklastock is reported in favorable condition. homa in September was estimated to be There has, however, been some deterioration 12,023,250 barrels, an increase of 30.5 per cent in range conditions in certain parts of dis- as compared with September, 1919. Productrict No. 11 (Dallas) due to continued dry tion in the Rocky Mountain fields, amounting weather, but on the whole stock men in the to about 1,600,000 barrels, showed a slight district "are well equipped to carry their increase. The total production of the Midcattle through the winter, having, as a rule, Continent field for the first nine months in an adequate supply of stock water and an 1920 amounted to 104,980,717 barrels, an abundance of teed." Live-stock men in increase of 22,870,471 barrels, or 27.8 per cent district No. 12 (San Francisco) "have ex- over the output for the same period in 1919. perienced an unsatisfactory year," and there Fewer wells were completed in September in has been a tendency to decrease the supply the Kansas, Oklahoma, and Wyoming fields of stockers, but "some movement in the op- than in the same month last year; nevertheless posite direction is now evident, with cheaper there was an increase in new production of feed in prospect." 83,917 barrels, as against 75,296 in September, In the lumber industry cancellation of orders 1919. Crude oil prices remained virtually continues and there have been further price stationary in the district. In district No. 11 reductions. On October 1, 135 mills reporting (Dallas) there was a decrease in production as to the Southern Pine Association stated orders compared with August, the September total to be 44,480,224 feet, shipments 63,735,239 amounting to 11,489,510 barrels, which was feet, and production 62,769,563 feet. Normal 854,376 barrels less than the August total. production of these same mills was given at The Central West Texas field made the best 87,674,183 feet. In district No. 11 (Dallas) showing. The output of the Texas Coastal the 28 mills belonging to the Southern Pine field was affected by the falling off in output Association located in that district report pro- of one of the largest wells, whose yield dropped duction about equal to that of August. Ship- from 20,000 to 7,000 barrels per day. Also, ments increased as a result of an improvement fewer completions of new wells were recorded, in transportation. Unfilled orders of these and the output was less in the district as commills amounted to only 58,448,655 feet on pared with August. A total of 636 wells were October 1 as compared with 75,778,485 (August completed, 435 of which proved to be producers 27). It should be said, however, that four having an output of 80,587 barrels. In August additional mills are represented in the larger there were 441 new producers, with an output total. Excepting the California redwood mills, of 103,205 barrels. Rainy weather, unfavorthere was a heavy falling off in amount of new able to drilling operations, is reported to be business taken on by the mills in district No. responsible for the decline. Crude oil prices 12 (San Francisco) during the week ending remained steady in the district. In district October 2. "The market is reported to re- No. 12 (San Francisco) a record production of main generally dull, and several mills are pre- petroleum is reported from California, the paring to cease operations." For the four daily output amounting to 304,340 barrels. weeks ending September 25, 32 mills belonging The highest previous figure was recorded in to the .Western PineManufacturers' Association June, 1914, when the daily average was report orders at the close of the period of only 302,400 barrels. The increase resulted from 33,075,000 feet, against a cut of 102,763,000 new production in the Elk Hills. The followfeet. Corresponding figures for the West ing figures were furnished by the Standard Oil Coast Lumbermen's Association (123 mills) are Co. of California: Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

NOVEMBER, 1920. FEDERAL RESERVE BULLETIN. 1139 of lake shipments, coal receipts at Lake Michi- I September, August, September, gan ports are not only below 1919 totals, but 1920. 1920. 1919. the percentage of the total going to Lake Superior ports is less than last year, according Production, daily average,barrels. 304,340 290,590 279,169 Shipments, daily average.. .do 313,533 321,955 310,271 to the report from district No. 9 (Minneapolis), Stored stocks, end of month.do 23,158,657 23,434,464 24,406,753 New wells opened 55 56 51 which says that the average tonnage received With initial daily produc- per day at Duluth-Superior Harbor during tion barrels.. 21,775 20,550 21,330 Wells abandoned 5 5 6 September, 1920, was 39,243 tons. To equal the tonnage received during 1919 would re- Production of anthracite coal is now being quire an average of 60,639 tons per day, and to accelerated with the return of the miners to equal the average for the 5-year period would wrork, and, with a speeding up of transport require daily receipts of 76,642 tons. Moreactivities, the movement of coal is becoming over, stocks were heavier at the beginning of more satisfactory. The output during Sep- 1919 than 1920. In district No. 10 (Kansas tember, was 5,125,000 tons, as compared with City) weekly reports show that mines in Mis- 7,332,000 tons during August and 7,333,000 souri and Oklahoma operated in September at tons during September, 1919, the respective about 75 per cent of full capacity, while the index numbers being 69, 99, and 99. The Kansas mines operated at 55.5 per cent. report from district No. 2 (New York) says Transportation difficulties and mine disability that the Lehigh Valley Railroad, a heavy are the reasons given for the greater part of anthracite carrier, reports an increase of 37 per time lost, and in addition labor shortage, which cent in coal movement in the first 15 days of was more pronounced in the Kansas field than October over the first 15 days of September, elsewhere. The retail price of coal has adand 6.3 per cent over the same period last year. vanced generally throughout the district, The production of bituminous coal for Septem- prices of bituminous coal reaching $10 to ber was 51,093,000 tons, as compared with $11.50 for best grades of lump in Kansas City 48,389,000 tons during August, and 47,402,000 during the first week in October. From distons during September, 1919, the respective trict No. 11 (Dallas) come reports of a fuel index numbers being 138, 131, and 128. The shortage of a serious nature in western Texas, output of bituminous coal in September was the Interstate Commerce Commission having the largest for any month since October, 1919, been petitioned to assign rolling stock to the and while prices remain high, slight decreases Colorado mines in order to supply the needed are reported. According to the report of coal for winter. district No. 3 (Philadelphia), highest grade Increased shipments from the Joplin district coals are selling at about $11 to $12 and lower in September somewhat reduced surplus stocks grades at $8.50 to $9 per ton f. o. b. at the of zinc and lead ores in district No. 10 (Kansas mines. Bituminous coal receipts at lake ports City), but severe drops in the prices of both in district No. 4 (Cleveland) were promising, metals are recorded, leading to further curamounting to 4,138,533 tons loaded into vessels tailment of production. During the month as compared with 2,505,827 tons in September, zinc-ore prices ranged from $50 as a maximum 1919. But the movement for the season is base to $40 as a minimum. Base prices for still behind that for 1919, being only 15,469,783 calamine ores were $30 to $35. Lead ores tons as compared with 18,514,130 tons in 1919. fell in price from $110 at the beginning of the Commercial distribution within the district, month to $80 at the close, the drop being however, is stated to be far from satisfactory, attributed to importations of lead ore from reasons alleged being priority orders for lake Australia and Mexico. In district No. 9 shipments and for public utilities and lack of (Minneapolis) copper production fell below the cars. District No. 5 (Richmond) reports August figures and was less than that for Sepbetter output, freer car movements, and fewer tember, 1919. Reports from companies prolabor troubles. ducing about 75 per cent of the district output In district No. 6 (Atlanta), however, mining were as follows: is interfered with by the continuance of the strike called September 8 in the Alabama dis- Pounds of refined copper. trict. In district No. 7 (Chicago) production Per is increasing with improved car supply and the cent, Per Septem- August, Sep- Septem- cent, same is true in district No. 8 (St. Louis). ber, 1920. 1920. tem- ber, 1919. 1920 of There was anincreaseof 2,262 carsof coalmoved ber of 1919. August. through St. Louis in September, 1920, over September, 1919. District No. 10 (Kansas Michigan 9,522,837 9,581,645 99.5 13,050,802 72.9 City) also reports increase in efficiency of dis- Montana 12,166,115 12,786,515 95.2 14,005,975 86.8 tribution. Notwithstanding the speeding up All copper 21,688,952 22,368,160 97.2 27,056,777 sa o Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1140 FEDERAL RESERVE BULLETIN. NOVEMBER, 1920. New business in the iron and steel industry from 168,167 bales to 148,442 bales for the has decreased, and "for the first time in many district. The active spindleage fell from 17,months the market now shows some of the 447,879 in August to 17,056,046 in September, mills in earnest quest of orders." A decrease, while the cotton held in the mills declined from first remarked in the demand from the auto- 610,311 bales in August to 531,453 in Septemmobile industry, has been reflected in " a gen- ber. District No. 5 (Richmond) reports no erally growing conservatism" on the part of change in the textile situation in September. purchasers. From district No. 4 (Cleveland) The mills were then working on back orders it is stated that " efforts are now being concen- and finding it very difficult to get new ones trated by the consumers on the reduction of even at the much lower quotations prevailing. inventories. Cancellations and holding back of Data secured from 33 firms belonging to the specifications, as well as the decrease in new National Association of Finishers of Cotton purchasing, have resulted in a material curtail- Fabrics, which represent about 70 per cent of ment of production by some steel companies. the white goods industry, 60 per cent of dyed At the same time there has been a decided im- goods, and 30 per cent of printed goods, show provement in the movement of iron and steel an average percentage of capacity operated products." Prices have reflected this general amounting to 41 per cent for all districts, the situation and have also been influenced by the percentages for district No. 1 (Boston) being drop in the price of coke. A tendency exists 36 per cent and for No. 2 (New York) 33 per toward easing of prices by certain independent cent. The average number of days of work producers in the heavier lines, such as plates, ahead at the end of September for all districts structural shapes, large bars, etc. Some pur- was 6.9 days—5.3 days in district No. 1 (Boschasers, in particular automobile manufac- ton) and 8 days in district No. 2 (New York). turers, have obtained a revision of prices on In district No. 1 (Boston) woolen manufacexisting contracts, but it is stated from district turers are said to be "in a state of waiting." No. 3 (Philadelphia) that "in the main the pro- Uncertainty prevails as to when mills which ducers are insisting upon the completion of the have partially closed will be able to resume on contracts." In district No. 4 (Cleveland) "the a full-time basis. At present very few orders market still shows a condition of large demand have been received and price reductions have and sustained prices in some other lines, nota- failed to stimulate buying for the 1921 spring bly those of a lighter character." As a result season. The effect of the absence of buying of improved transportation conditions in dis- demand is found in the market for raw wool, trict No. 6 (Atlanta), " there have been heavy representative dealers agreeing that prices for movements of pig iron, cast-iron pipe, iron and standard grades have declined since May 1 steel products out of the district." The un- about 35 per cent to 40 per cent. District No. filled orders of the United States Steel Corpora- 3 (Philadelphia) reports that woolen yarn tion at the close of September had declined to spinners are receiving practically no orders, 10,374,804 tons, corresponding to an index although September and October are usually number of 197, as compared with 10,805,038 the busiest months. Mills in the district are tons at the close of August, corresponding to an variously reported to be operating at from 10 index number of 205. Pig-iron production per cent to 80 per cent of capacity, those more during September was 3,129,323 tons, as com- fully employed running on back orders. One pared with 3,147,402 tons during August, the factory, working at 30 per cent of its capacity, respective index numbers being 135 and 136, stated that from 30 per cent to 40 per cent of but daily average production in September was the work was being done for stock. Mills in excess of August. Steel-ingot production engaged in the manufacture of underwear in during September was 2,999,551 tons, as com- district No. 3 (Philadelphia) are also either pared with 3,000,432 tons during August, the shutdown or running at a small fraction of index number for both months being 124. capacity. Cotton mills continue to operate on part- Twenty-eight representative mills reporttime schedules due to lack of orders, and while ing to the Association of Knit Goods Manuthere are not many complete shutdowns, the facturers of America state that unfilled orders, percentage of operating capacity in the in- which amounted to 882,880 dozen on August 1, dustry is low. District No. 1 (Boston) reports had dropped to 493,006 dozen by September 1. that Lowell cotton mills are operating at about New orders during the months of August and 60 per cent of capacity. Some mills in the September were 28,378 dozen and 19,648 district are said to be manufacturing for stock dozen, respectively. Shipments amounted to in the absence of orders. Census figures show 401,225 dozen in August, while production that, with the exception of Rhode Island, the was 322,417 dozen. In September shipments consumption of cotton by New England mills totaled 307,145 dozen, production 318,128 was less in September than in August, dropping dozen. Cancellations rose from 35,598 dozen Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

NOVEMBER, 1920. FEDERAL RESERVE BULLETIN. 1141 during August to 44,617 dozen during Septem- ing, to 43.2 per cent in district No. 5 (Richber. Thirty-three mills state their produc- mond), 6 firms reporting. District averages, tion in September to have been 352,385 dozen, based on returns from 135 wholesale grocery or 69.9 per cent of normal production. firms, indicate increases in 6 out of 8 reporting In the shoe and leather industry, as in tex- districts as compared with September, 1919, tiles, reports bring news of curtailed operations, excepting district No. 6 (Atlanta), 7 firms and in some cases complete shutdowns have reporting, and district No. 11 (Dallas), with occurred. Data from 15 representative boot 5 reporting establishments. Generally speakand shoe manufacturers in district No. 1 ing, there have been considerable increases in (Boston) indicate that operations are at from wholesale hardware sales over September a 40 per cent to 60 per cent of normal capacity year ago. In district No. 11 (Dallas), with with little spring business placed. In Auburn, 3 reporting firms, sales show a decline. Obvi- Me., the shoe factories have been running full ously price changes, especially in lines in time, employing one-half to two-thirds the which pronounced reductions have been expeusual force. In district No. 8 (St. Louis) there rienced, make it impossible to estimate changes are increases both in shipments and in current in the physical volume of business done by business in boot and shoe lines, but marked the reporting groups of wholesalers. falling off in future orders has reduced manu- The retail trade situation shows a moderate facturing activity. Plants within the district increase of net sales over the same period last are estimated to be operating at from 55 per year, but it does not show the usual fall accent to 65 per cent capacity, the larger plants tivity. The unseasonable weather conditions being more active than the smaller ones. throughout the country have had an appre- Manufacturers are buying little leather, with ciable effect upon the buying of certain articles, consequent reductions in the prices of both such as men's clothing. Accompanying this upper and sole leathers. Tanneries have still relatively light demand is a tendency on the further reduced the scale of operations or have part of the retailer in many cases to reduce closed dowrn during the month. District No. 8 prices in order to stimulate buying. This, it (St. Louis) reports that wet salted hides which is reported in certain districts, has had some sold in St. Louis at 41 cents per pound October effect. On the whole, however, "the consumer 15, 1919, were being quoted at 9 cents on the is not buying very actively." In some of the same date this year. District No. 3 (Phila- agricultural sections the unsettled price situadelphia) says: "Tanners report an absence of tion relative to the principal crops, as well as demand for their product, which, following the the tendency often found to hold instead of ever-increasing lack of interest of the last few marketing, has helped retard fall purchasing. months, is now at its lowest ebb. Both sales of Reports from almost all districts state that finished stock for immediate use and orders for the retailer is purchasing very conservatively, future delivery are decreasing and all conces- outstanding orders being very small, in spite sions in price fail to stimulate the trade." of the fact that at this time of the year "many Reports from 8 of the 12 Federal Reserve fall and winter goods are ordinarily received.77 districts, giving changes in the monthly vol- Information received from the several Fedume of net? sales for several important whole- eral Reserve districts brings evidence of further sale lines, show somewhat divergent tendencies, recessions in building activity for the country but in wholesale dry goods and in boots and taken as a whole. In district No. 12 (San shoes the statistics fairly well reveal the lack Francisco), however, the situation is excepof demand which has been responsible for the tional, in that local reports show that, both in inactivity in allied manufacturing lines. In number and in value of permits issued, Sepdry goods the tendency has been downward, tember was ahead of August, and for the 19 comparing sales with the previous month in principal cities the total valuation of permits was the 4 reporting districts—No. 5 (Richmond), 50 per cent greater than in September a year No. 6 (Atlanta), No. 11 (Dallas), and No. 12 ago. But the Northwest is not sharing in these (San Francisco). As compared with a year increases, both Portland and Seattle showing ago, sales show reductions in 3 reporting dis- marked reductions in the value of permits as tricts, namely, districts No. 5, No. 6, and No. compared with a year ago, amounting to 41.7 11. But in district No. 12 an increase of 14.3 per cent and 35.4 per cent, respectively. On per cent is estimated to have occurred on the other hand, Los Angeles registered a 195.5 the basis of statistics compiled from the re- per cent increase and San Francisco 62.1 per turns made by 12 firms. In district No. 7 cent. In the other districts, with the possible (Chicago) sales showed a negligible increase. exception of district No. 6 (Atlanta), however, Reductions in sales of wholesale shoe houses there is fairly universal testimony to a general have taken place, ranging from 17.6 per cent in decline in both number and in value of builddistrict No. 12 (San Francisco), 15 firms report- ing permits as compared with September, 1019. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1142 FEDERAL RESERVE BULLETIN. NOVEMBER, 1920. Although there is an increase in building ac- of permits, except Fargo and Grand Forks. As tivity in district No. 6 (Atlanta) as compared compared with a year ago, the decline in valuawith a year ago, in a majority of the 18 cities tion amounted to 44.3 per cent, and there was a from which reports are received it is noticeable reduction of 31.3 per cent from the preceding that three large cities—New Orleans, Atlanta, month. District No. 10 (Kansas City) reports and Nashville—report decreases in value of severe declines in the value of building permits permits. In district No. 1 (Boston) the value as compared with September, 1919, the reducof permits for new construction amounted to tion being 53.4 per cent. only $2,580,313 in September, 1920, against On the other hand, building operations for $5,673,930 in September, 1919, for the same the first nine months of 1920 were ahead of cities. Boston showed adeclinefrom $1,273,157 those for the corresponding months of last to $592,115 in new construction, but there was year in district No. 11 (Dallas). Although an increase in other permits over the same Shreveport, Beaumont, and El Paso show an month of the preceding year, the respective increase in the value of building permits as totals being $1,455,270 and $637,767. For the compared with September a year ago, six other rest of the district the totals for other con- cities from which reports are received record struction remained almost the same. declines, especially marked in the case of Fort In district No. 2 (New York) little change in Worth and Houston. The opinion most genthe building situation is reported. Building erally advanced as to the causes of hesitancy projects in contemplation decreased in number in undertaking new construction in the face of and value, although the value of contracts the prevailing need is, first, uncertainty reawarded rose largely because of expenditures garding the prices of building materials; for public works and public utilities. The esti- secondly, existing high labor costs; and finally, mated cost of permits issued in district No. 3 difficulty in securing capital for financing new (Philadelphia) m September, 1919, was $8,633,- projects and the prevailing high interest rates. 827, while the total was $4,936,379 in Septem- Financially the month has shown comparaber, 1920. The number of permits likewise de- tively few outstanding developments. There clined from 2,268 to 1,943. There is also less has been an upward tendency in the prices of building in progress in district No. 4 (Cleve- bonds, including both the Liberty issues and land), although labor is more plentiful and the corporate securities. Discount rates have contransportation situation is improved. In 12 tinued practically unaffected in most parts of leading cities of the district, with the exception the country. Movements of gold into the of Columbus, declines are recorded both in United States have been accelerated through number and in value of permits issued. In the action of the Federal Reserve System in Cincinnati and Toledo slight increases in value bringing home deposits which have been held of permits for alterations are more than offset "earmarked" abroad. Some inward shipby reductions in value of projected new con- ments of gold have occurred as a result of the struction. In district No. 5 (Richmond) the operations connected with the Anglo-French decrease in the value of building permits in 23 maturities. One or two small foreign governcities amounted to 13.5 per cent as compared ment offerings have been successfully made in with September of the preceding year, the total the New York market, but the cost has configures being $1,000,599 less than the total for tinued around 8 per cent. There has been a September, 1919. There was likewise a de- somewhat broader demand for prime accepcrease in number of permits issued both for new tances by outside banks and a rather better buildings and for alterations and repairs. The distribution of commercial paper. Corporate decline in valuation of permits from the pre- financing has somewhat revived, but the stock ceding month—23.4 per cent—was in part due market has been during most of the month in to seasonal factors. District No. 7 (Chicago) a rather depressed condition. Call-money also reports little building in progress, and in rates have been steady, most of the time the five leading cities of district No. 8 (St. around 7 per cent, but during the latter part Louis) a shrinkage occurred in number and of the month have at times risen to 9 per cent value of permits as compared with September and 10 per cent. Foreign exchange has been a year ago. The heaviest decreases took place not far from stable, but rather depressed, with in St. Louis, where new construction permits a declining tendency, which is attributed to the in September, 1920, amounted to only $519,010, large outstanding balance of unfunded inas compared with $2,662,430 in September, debtedness, which gives rise to offerings on the 1919. In district No. 9 (Minneapolis) all im- New York market from time to time whenportant cities show a decline in the valuation ever quotations show improvement. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

NOVEMBER, 1920. FEDERAL RESERVE BULLETIN. 1143 SPECIAL REPORTS ON BUSINESS CONDITIONS. CONDITION OF WHOLESALE TRADE. Percentage of increase (or decrease) in net sales in September, 1920, as compared with the preceding month. o District. | O No. 3 +14.1 No. 4 No. 5 ... +13.3 No. 6 + 1.9 No 7 No. 10 + 7.0 No. 11 — 1.1 No. 12 - 0.9 i 2 District. "B No 3 . No.4 No 5 No. 6 No 7 No 10 No. 11 No. 12 rebmu .smrif 48 8 7 2 5 29 o rebmu .smrif o o t>J fi rebmu .smrif _9q 9 -22 9 — 99 — 7 .sgur 9 7 O W — 17 C —13.7 4' ... .1 + 9.3 +26.4 -5.3 rebmu 6 8 5 12 ft A is otu .seilp < rav.dra W —0 4 4-1 6 + 1.4 -3.6 —2 7 + 7.3 o rebmu .smrif rebmu .smrif 21 q 9 4 3 22 enoita CO 5-3.6 2 7 ! +13.3 1 ra stoD .seohs o .smrif z, — 37 7 + 4.6 + 7.0 O rebmu .smrif 6 6 15 i mra inemel o i 17: rebmu .smrif A Percentage of increase (or decrease) in net sales in September, 1920, as compared with September, 1919. District. No 3 No. 4 No 5 . - No 6 No. 7 No. 10 No 11 No. 12 District. No 3 No 4 No 5 No 6 No 7 No 10 No. 11 No. 12 9IJ900J O + 56 +23.8 +23.3 — 59 + 19.1 + 3.5 — 10 7 +30.9 .sgur Q +31 1 rebmu .smrif 48 12 X 7 24 2 5 29 o rebmu .smrif Mo §> b -16.9 — 9.4 + 0.7 — 1.2 + 14.3 1 A A 4 us otu .seilp o rebmu .smrif 6 03 A w +22.4 + 12.4 6 +26.6 8 + 0.9 13 + 17.4 — 20.0 12 +22.5 o rebmu .smrif fl A rebmu .smrif s o A 7 9 -43.2 q — 15.9 -20.9 4 H 22 -17.6 "3 +21.3 5 i—ii. 2 2 +26.5 7 i rebmu .smrif A n mra tnemel O PR ft rebmu .smrif A 6 6 8 15 o rebmu .smrif £ 1 —il. 9 + 3.9 + 19.9 i S-t o A < i + 31.6 17 • rebmu .smrif 4 15 o rebmu .smrif recovering from the setback brought on by the bieak in sugar. Buying was slightly better than in the preceding month, although it is still very conservative. There is an unwillingness to anticipate future needs and a tendency to purchase in moderate quantities not ahead of actual and pressing requirements. The natural consumptive demand is the main support of the market." Reporting wholesale grocery firms state that accounts outstanding at the end of September were 2.6 per cent greater than at the end of the preceding month and 9.2 per cent above the amounts outstanding a year ago. The ratio of the accounts outstanding at the end of the month to net sales during the month w^as 88.1 per cent. Reporting wholesale hardware firms announce an increase of 3.1 per cent in accounts outstanding at the end of September as compared with the previous month and 27.9 per cent as compared with a year ago. The ratio of outstandings at the end of the month to net sales during the month was 151.9. The reports from district No. 6 (Atlanta) are based upon individual returns showing wide variations according to the location of reporting establishments. In dry goods all reporting firms irrespective of location show a decrease as compared with the previous month, but in other lines reported decreases from firms located in one part of the district are frequently more or less offset by increases elsewhere. District No. 10 (Kansas City) states that 11 wholesale dealers report purchases of dry goods and kindred lines slow and below^ the volume of last year. Early orders for fall shipments have been completed and there are practically no urifilled orders and no advance orders yet taken for spring delivery. Wholesalers are A not buying on account of unsettled condition of manufacturing prices. They report that retailers are buying from hand to mouth, but do not hesitate to buy for current wants, which in the aggregate exceed sales for the same period last year. Reductions of about 20 per cent -23.5 14 have been made on prices of well-known brands of staple cotton goods. As foreign demand for In district No. 3 (Philadelphia) "general con- manufactured goods is somewhat reduced durditions in the grocery trade during September ing recent months, there is no fear among buyers show some improvement, with the business fast regarding scarcity of goods in the future/' Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1144 FEDERAL RESERVE BULLETIN. NOVEMBER, 1920. District No. 11 (Dallas) comments as fol- volume of transactions for the month of Seplows: " Measured in dollar amounts, the Sep- tember. Following a rather quiet trade durtember sales of nearly all lines of wholesale ing August, buying took an upward turn, and trade reporting to the Federal Reserve Bank the average sales for September showed an of Dallas showed a diminished volume of trade increase of 9.3 per cent over August, 1920, and both as compared with August, 1920, and 21.3 per cent over September, 1919. Retail September, 1919. Reduced prices, of course, buying in this line manifested a spirit of inhad something to do with the showing made creased confidence on the part of the merby groceries and dry goods, as these lines bore chants. Price trends are reported to be downthe brunt of the price-cutting wave which set ward on drugs and chemicals, but on drug sunin about the 1st of September. Our reports dries the quotations generally have ruled firm almost unanimously agree that the retailers and unchanged to higher." are still restricting orders to present necessi- In district No. 12 (San Francisco) "reports ties, postponing the matter of their future from 131 wholesale firms show a general inneeds until the probable demands and buying crease in volume of trade during September power of their customers take more definite over the same month last year, except in the form. wholesale shoe and automobile tire business, " Collections made by the wholesale trade which showed a decrease of 17.6 per cent and during the month of September showed varied 23.5 per cent, respectively. progress, the reports varying with different "Collections during September show little lines of merchandise and with geographical change over last month, the majority of districts. On the whole, payments were slower firms still reporting collections good. Reports than usual for the month, as evidenced by an are unanimous that the tendency of the trade unusual number of requests for extensions of is to buy cautiously and only for current conaccount. sumption. An increasing number reported "The disturbed condition of business, re- an even greater preference than has recently flected in the reports reaching us from whole- prevailed for staples as against fancy goods. sale houses, is attributed by them largely to "Demand in general is reported weak, the discouraging outlook now confronting the buyers tending to hold off in anticipation of district's cotton producers as a result of the further price reductions. This tendency is recent decline in the price of that staple. To most noticeable among dealers in hardware, meet the situation wholesale merchants have dry goods, groceries, and rubber goods, while resolutely set themselves to overcome the in- furniture and stationery dealers notice it only ertia of the demand. A number of them have to a limited extent. tried special sales and price reductions with "General improvement in transportation varying degrees of success. In most instances conditions is noted by nearly all firms, only a these measures have effectively stimulated few reporting any delays in shipments during sales, while in some cases they are said to have the past month. had the opposite effect by creating the belief "Prices are reported as steady during Sepamong buyers that further reductions were tember by hardware dealers, while wholesale imminent." furniture and stationery firms report a slight "Wholesale dry-goods firms report a shrink- increase in prices over last year. Reductions age in sales and a heavy reduction in prices in prices are generally reported by dealers in during the past month. Large stocks are gen- shoes, dry goods, and groceries." erally held by wholesalers in this line, who are The detailed report for district No. 12 (San frank to admit that in order to turn some of Francisco) is given as follows: the goods they purchased before prices started downward they will be compelled to absorb a Percentage of increase or decrease in net sales for September, loss. It is significant of the general strength 1920, over September, 1919. of their condition, however, that they seem, as a, rule, determined to use replacement values . Los San I Prtrf. Disif necessary instead of cost values as a basis An- Ss:|£S: Seattle. trict. geles. of their future selling prices, even though it means a loss. Apparently they are both able B. Wholesale hardware 29.9 23.0 1 35.7 12.2 22.5 and willing to shoulder their share of the trade's C. Wholesale dry goods 3.5 i 31.0 11.4 14.3 price-adjustment burdens in order to hasten D E. . W W h h o o l l e e s s a a l l e e g d r r o u c g e s ries 35.9 5 4 0 2 . . 6 3 1 2 0 6 . . 9 1 3 2 0 6 . . 9 5 the arrival of a stabilized situation. F Wholesale shoes. . . . —19.9 —29.1 -17.6 G. Wholesale stationery 30.8 35.8 12.9 45.2 31.6 "In contrast with other lines of wholesale H. Wholesale furniture 4.6 18.1 | 33.4 27.6 19.9 activity, the drug trade reported an increased I. Wholesale auto tires -20.8 -14.9 -24.1 -23. 5 i """ Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

NOVEMBER, 1920. FEDERAL RESERVE BULLETIN. 1145 Percentage of increase or decrease in net sales Jan. 1-Sept. Order and production report for month ending Sept. 30, 1920, over same period last year. 1920.—Continued. Los San Port- Dis- [33 mills.] An- Fran- land. Seattle. trict. geles. cisco. Per cent of actual C B . . W W h h o o l l e e s s a a l l e e h d a r r y d w go a o r d e s 50.9 4 3 5 7 . . 7 8 3 2 2 9 . . 1 4 2 4 2 8 . . 0 1 3 39 4 . . 6 8 Dozens. pr t o io d n u . c- D. Wholesale groceries "3O."6" 30.7 24.6 27.0 E. Wholesale drugs 25.6 30.1 Orders 22,804 4.5 F. Wholesale shoes 9.2 -14.8 5.9 Shipments 344,496 68.4 G. Wholesale stationery 47.8 44.9 36.8 24.8 42.5 Cancellations.. 44,815 8.8 H. Wholesale furniture 53.6 60.9 51.3 18.5 46.6 I. Wholesale auto tires -9.2 -11.8 -2.6 Production 352,385 Normal production of these mills 503,579 Percentage of increase or decrease in net sales for September1 1920, over August, 1920. Twenty-eight representative mills reporting A Lo n s - F S r a a n n- l P a o n r d t- . Seattle. t D ri i c s t - . f f o o r r t A h u e g f u o s ll t o w an in d g S t e a p b t l e e m : ber furnished the data cisco. B. Wholesale hardware 21.4 -2.0 15.2 -9.5 7.3 [In dozens.] C. Wholesale dry goods -14.4 45.3 -14.6 -7.7 E D . . W W h h o o l l e e s s a a l l e e d gr r o u c g e s ries - 1 . . 1 6 - 1 6 4 .1 .3 - - 0 5 . . 9 3 August. Se b p e te r. m- Loss. Gain. F. Wholesale shoes -4.2 38.6 7.0 G. Wholesale stationery 21.4 - 6.1 32.1 - 9.1 13.3 H, Wholesale furniture 28.5 28.9 74.5 21.3 26.4 Unfilled orders first of month.. 882,880 493,006 389,874 I. Wholesale auto tires New orders 28,378 19,648 8,730 Shipments 401,225 307,145 94,080 Cancellations 35,598 44,617 9,019 Production 322,417 318,128 4,289 PRODUCTION REPORT OF THE KNIT GOODS MANUFACTURERS OF AMERICA. FINISHED COTTON FABRICS. Total production of winter and summer underwear for the six months ending Sept. 30, 1920. The National Association of Finishers of Cotton Fabrics, at the request of the Federal Number Actual Per cent Reserve Board, have arranged for a monthly of mills production of norreporting. (dozens). mal. survey within the industry. The results of the inquiries are herewith presented in tabular April 781,315 82.1 form. Mr. H. E. Danner, secretary of the May 678,287 82.2 June 560,034 80.3 association, makes the following statement July 583,190 73.4 concerning the tabulation: August 585,071 67.3 September. 606,257 74.2 The accompanying figures are compiled from statistics furnished by 33 out of 59 members of the National Asso- Order and production report for month ending Sept. 30, 1920c.iation of Finishers of Cotton Fabrics. It is probably fair to state that in the absence of having Number of mills reporting 33 specific detail at hand, but according to our best estimate, it is probably well within the fact that the figures given Unfilled orders first of month (dozens) 512,504 for the various classes of work would cover approximately New orders received during month (dozens) • 22,804 the following percentages of the entire industry: White Total (A) (dozens). 535,308 goods, 70 per cent; dyed goods, 60 per cent; printed Shipments during month (dozens) 344,496 goods, 30 per cent. The figures given represent reports Cancellations during month (dozens) 44,815 from exactly the same finishers for the two months, both for the totals and for the subdivisions, and therefore are Total (B) (dozens) 389,311 strictly comparable. Balance orders on hand October 1 (A minus B) 145.997 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1146 FEDERAL RESERVE BULLETIN. NOVEMBER, 1920. Production and shipments of finished cotton fabrics, by Federal Reserve districts. August, 1920. September, 1920. W go h o i d t s e . g D o y o e d d s. P g r o i o n d te s d . Total. g W o h od it s e . g D o y o e d d s. P g r o in od te s d . Total. Total finished yards billed during month: District 1 . .. 12,214,013 11,786,048 13,715,598 40,432,552 10,384,678 11,624,175 9,690,103 33,813,789 2 1,832,736 704,841 184,553 6,738,033 2,081,937 787,792 551,127 6,573,892 3 5,232,545 5,425,519 10,658,064 6,035,052 3,864,570 9,899,622 5 4,758,048 145,878 4,903,926 4,767,537 94,582 4,862,119 6 114,495 571,434 685,929 37,665 986,093 1,023,758 8 2,005,667 1,614,872 Total 24,151; 837 18,633,720 13,900,151 65,424,171 23,306,869 17,357,212 10,241,230 57,788,052 Total finishing charges billed during month: District 1 $270,571 $457,829 $863,918 $1,904,683 $224,537 $497,744 $650,320 $1,558,885 2 37,213 24 437 8,545 189,833 41 812 26,746 25 104 192,546 3 204,447 210,979 431,962 234,695 164,313 414,980 5 98,295 3,238 ;• 101,533 98,185 1,835 100,020 6 3,096 22,866 25,962 749 37,813 38,562 8 33,235 27,693 Total 613,622 719,349 872,463 2,687,208 599,978 728,451 675,424 2,332,686 Total average percentage of capacity operated: District 1 54 43 57 48 46 34 31 36 2 69 25 40 41 41 19 47 33 3 . . . .. 63 54 56 82 30 53 5 69 69 74 74 6 . . .. 44 59 8 86 72 Average for all districts 59 42 54 50 57 31 34 41 Total gray yardage of finishing orders received: District 1 8,400,959 10,161,679 4,904,721 25,450,350 8,819,825 7,771,112 3,743,385 21,688,638 2 1,627,409 581,851 1,210,785 5,340,236 2,398,403 903,225 1,564,039 5,802,899 3 6 581 337 4 470 523 11 647 630 6 518 929 2 963 242 9,991,674 5 . . .. 2,431,348 97,653 2,529,001 3,658,050 ' 47,251 3,705,301 6 23,113 497,606 520,719 31,895 256,330 288,225 8 2,615,080 2,291,351 Total 19,064,166 15,809,312 6,115,506 48,103,016 21,427,102 11,941,160 5,307,424 43,768,088 Number of cases of finished goods shipped to customers (case equal approximately 3,000 yards): District 1 4,514 3,229 2,797 22,205 2,989 2,731 1,436 16,141 2 427 2 650 ] 066 2,940 3 527 215 . . 4,941 486 144 4,299 5 1,429 2 579 1,729 2,588 6 8 427 236 Total 6,897 3,444 2,797 32,802 6,270 2,875 1,436 26,204 Number of cases of finished goods held in storage at end of month: District 1 4,160 4,214 2,910 26,586 4,253 4,089 2,565 29,495 2 1,078 4 264 1 106 4,128 3 330 331 5 678 451 349 5,812 5 513 1,913 544 1,980 8 443 664 Total 6,081 4,545 2,910 38,884 6,354 4,438 2,565 42,079 Total average work ahead at end of month, expressed in days: District 1 7.9 4.6 9.2 6.7 6.2 4.1 6.9 5.3 2 15.3 3.0 15.9 7.8 15.2 2.9 19.0 8.0 3 17.5 9.0 12 4 13 9 7 0 9.9 5 . . 16 8 16 8 10 9 10.9 6 14 0 2.6 8 . 21.0 16.0 Average for all districts 11.7 5.2 j 10.2 8.6 9.4 4.5 8.7 6.9 NOTE.—Many plants were unable to give details under the respective headings of white goods, dyed goods, and printed goods, and reported their totals only; therefore the column headed "Total" does not always represent the total of the subdivisions but is a correct total for the district Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

NOVEMBER, 1920. FEDERAL RESERVE BULLETIN. 1147 Report of the Gold Committee of the American CREDIT DEFLATION THE CURE. Bankers' Association. It can hardly be contended that the loss of $22,000,000 Herewith is reprinted the report of the gold of gold per year from our monetary stock of around $3,000,committee of the American Bankers' Associa- 000,000 constitutes a national emergency. When the gold tion upon the so-called McFadden gold bill embargo was removed the United States had the largest (H. R. 13201), introduced in the last session gold supply of any country in the world's history, a supply of Congress, uto provide for the protection of so abnormally great that every banker and economist knew the monetary gold reserve by the maintenance that it could not be permanently held, and practically all of the normal gold production of the United students were agreed that it was desirable that a substan- States to satisfy the requirements of the arts tial part of it should leave the country. Its presence made and trades, by imposing an excise upon all gold possible an overexpansion of credit in the United States used for other than monetary purposes, and the and the outflow which has since taken place of three or four payment of a premium to the producers of hundred millions has actually made our situation far safer newly mined gold, and providing penalties for than it was, by imposing a check upon credit expansion. the violation thereof." The best banking opinion of the country looks forward to a progressive and far-reaching contraction of our credit fabric The membership of the committee consisted and regards it as the only alternative to such a disastrous of Lawrence E. Sands, A. Barton Hepburn, disruption of the credit system as Japan has recently seen. and George M. Reynolds, chairman. The proper course to take is not by artificial methods to The McFadden bill, so called, provides for a tax of 50 seek to expand the gold basis of our credit system, but cents per pennyweight of fine gold for all gold manufac- rather to contract the superstructure of credit to a point tured, used, or sold for other than coinage or monetary where it can be safely maintained under conditions of a purposes, including jewelry and other purposes of orna- normal distribution of the world's gold supply. The mentation and dentistry (with some exceptions for chil- problem of gold production is an international and not a dren and charity cases). From such funds thus collected national problem. Our national stock of gold is dependent and "any other funds in the Treasury of the United States not upon the difference between gold production and gold not used for specified purposes " there shall be paid a bonus consumption in the United States, amounting to a few tens to the producers of new gold in the United States of $10 of millions, but rather upon the world-wide consumption per fine ounce down to May 1, 1925, and that thereafter and production of gold, and upon the course of internaboth the tax and the premium shall be readjusted an- tional trade. If at any time the banking situation calls for nually by certain Government officers in accordance with more gold in the United States, we can purchase it in the the commodity price index number, as determined by the international gold markets far more cheaply than we can Bureau of Labor Statistics. The tax and the premium are obtain it by the doubtful method of an expensive bonus both to rise or fall after May 1,1925, according as the index on new gold produced in the United States, which could at number rises or falls. In behalf of the bill it is argued best make a difference of only two or three tens of millions that the general increase in prices and wages in the United per annum. Gold imports and exports of the United States has raised the cost of gold production, while the States in the first four months of 1920, running between two price of gold is fixed at $1 for every 23.22 grains of fine and three hundred million dollars, were far more significant gold; that as a consequence of the fixed price and rising than any difference that could be made by the gold bonus costs the profits of gold production are cut and the mines r plan in our stock of gold would amount to in several years. where low-grade ore is worked are in some cases being forced to close, with the result that gold production in the The increased industrial consumption of gold, following United States, which stood at about $89,000,000 in 1913, the armistice, was partly temporary, a phenomenon was cut to $58,488,000 in 1919—a reduction of around growing out of the relaxation of war-time economies. Our $30,000,000—whereas the industrial consumption of gold people who had repressed their desire for luxuries during which stood at about $45,000,000 in 1913, increased to over the war, turned suddenly extravagant and bought jewelry $80,000,000 in 1919. The result is that whereas we had a of all kinds lavishly. This tendency may be undesirable, large surplus for monetary purposes in 1913, we were and probably is. Extravagance of all kinds should be obliged to draw on our monetary stock of gold for industrial suppressed. The policy of a general tax on luxuries may purposes in 1919 to the extent of about $22,000,000. It is be commended, and a tax on jewelry, as part of such a urged that this consumption of gold money for industrial general tax, may well be advisable, but a differential tax purposes, cutting into our gold reserve, constitutes a on gold as a raw material of production is a different matter, national emergency, and that a measure both to reduce and one which no national emergency calls for. the industrial consumption of gold (by taxation) and to The essential elements of the gold standard are: (1) The increase the production of gold (by a bonus) is called for. instant convertibility of all forms of representative money It is further argued that if relief is not given to gold miners in gold on demand; (2) the free coinage of gold bullion; by some such measure some gold mines will be abandoned (3) the unrestricted melting down of gold coin into bullion; permanently, particularly the deep mines which will fill (4) the uninterrupted flow of gold from money into the with water and other mines where timbering will deterio- arts, and the uninterrupted flow of gold from the arts into rate toj3uch an extent that the mines will become unsafe money; (5) the free export and import of gold. A tax of this for operation. kind, interfering with the free flow of gold into the arts, Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1148 FEDERAL RESERVE BULLETIX. NOVEMBER, 1020. thus violates one of the basic elements of the gold stand- is the standard of value, the price of gold in terms of gold ard. money is necessarily fixed. The demand for gold, how- From the outbreak of the great war in Europe our indus- ever, is always unlimited. The gold miner can always trial system has been under an increasing strain. Our sell at a fitted price as much gold as he can possibly promarkets have been drained increasingly of goods and sup- duce. He finds his costs rising in periods of boom and plies for Europe. The one-sided flow of commodities to prosperity, and he suffers as a consequence. On the other Europe has been financed from the beginning, in consider- hand, periods of adversity, depression, and falling prices able part, by expanding bank credit in the United States; bring to the gold miner, as to no one else, increased profits. the resultant shortages of goods, together with expanding He has an unlimited market in the worst depression, and bank credit, have raised prices high, and as a consequence the more severe the depression the lower his costs of procosts of production of all kinds have risen. These condi- duction tend to be. He is at present suffering in an tions were intensified by our own entry into the war. Our intensified form from the upswing of prices and costs. Government spent many billions of dollars, raised by taxes, He has in the past, however, enjoyed periods of prosbond issues, and borrowing from banks, resulting in perity when the rest of the community was suffering, and increased shortages of goods and increased prices, which in the natural course of things he may look forward to increased the strain on our industrial system. During the the recurrence of similar situations. war 4,000,000 or 5,000,000 able-bodied men were with- In reality, the propaganda in favor of doing somedrawn from the ranks of industry and entered the military thing for gold is exactly on a par with the propaganda in and naval service of the United States, while many favor of doing something for silver, about which we heard so more millions were diverted from the production of much a generation ago. It has no more stable foundation ordinary goods to the production of war-time materials and than did the silver propaganda. There is nothing to justify supplies. A labor shortage necessarily resulted, with a Government interference in behalf of this industry, or to material increase in wages. justify a Government bounty upon the production of virgin While some industries, owing to the rise in war-time gold. Per contra, there is very much to be said against prices, have made very large profits, many others have such action on the part of the Government. suffered. Among these were the gold mines producing ARGUMENTS AGAINST BONUS. low-grade ore. A number of these, because of the in- We may pass briefly over the difficulties of administracreased cost of production and labor shortage, were obliged tion of such an act; the danger that frauds would be practo suspend. This was true, however, of copper and iron ticed upon the Government; the difficulty of distinguishing as well as gold. The well-known Tread well mine, possessvirgin from old gold melted down. Gold which differs ing a large volume of low-grade ore, was obliged to suspend. from other gold merely in having a special history, and Others very likely suspended production from the same which, by virtue of that special history rather than its incause. Some continued, hoping for a change in conditrinsic qualities, commands a high premium, presents an tions. But gold miners are not the only ones who have anomaly inconsistent with the normal functioning of a free suffered. Traction companies, for example, having a gold market and the normal functioning of the gold standstipulated fare, usually a nickel, have suffered severely. ard. The temptation to manufacture history instead of The different States have refused to make it possible for mining gold would be very great. the traction companies to earn expenses by allowing them Again, the provisions in the McFadden bill introducing increased compensation for their service, somewhat in the index number of commodity prices as a basis for fixing proportion to the general advance in costs. The steam the rate of taxes on gold manufacture and of premium, on railways have a just claim upon the public for increased gold mining constitutes an opening wedge for the general compensation in order to enable them to maintain effiintroduction of the index number as a standard of value in ciency and to render the public good service. Universities the United States, in accordance with Prof. Irving Fisher's and charitable instutions, with income derived largely plan for "Stabilizing the dollar." It is beyond the provfrom bonds, have found themselves in many cases in ince of this paper to deal with that plan in extenso. Your desperate plight as a consequence of the rise in prices, committee believes in the gold standard and does not bewith no increase in income. Widows and orphans, trust lieve in tampering with it or interfering with it in the presfunds, public officers and in general all recipients of fixed ent critical condition of the world's monetary affairs, incomes have suffered. There is, moreover, another committee of the American A large body of other industries whose costs have risen Bankers' Association, which is to make a detailed report faster than their prices have similarly suffered. upon the project. We shall content ourselves, for the pres- Recognizing that no national emergency exists calling for special treatment of the gold-mining industry, it is ent, with pointing out that if this index number standard difficult to make a case for singling out the gold-mining is to be adopted it should be considered on its own merit, industry for special relief from the Government. That it and not introduced "by the back door" as a feature of the has suffered is unfortunate, but it i3 one of the costs of the McFadden bill. war. It is one among a large class of those which the war The greatest objection of all, however, lies in the has injured. danger which this measure would involve in the gold Gold mining, however, though suffering under present standard itself. Nearly all of the European States are conditions, enjoys a peculiar advantage which few other on a paper basis. Only a: ew of the smaller countries of industries enjoy. As a consequence of the fact that gold Europe are even approximately maintaining the gold Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

NOVEMBER, 1920. FEDERAL RESERVE BULLETIN. 1149 standard. The United States, par excellence, and Japan does not rise as other prices rise, while in a period of low as well, stand out conspicuously as nations maintaining prices the prices of gold manufactures are relatively high, the gold standard. All the world believes that our dollars and purchasers of gold manufactures consequently tend to are as good as gold. All the other nations of the world diminish. Variations in the consumption of gold thus also are struggling and hoping to get back to the gold standard. work toward diminishing the supply of free gold when We enjoy a proud preeminence in this respect, and it prices are too high and toward increasing the supply when should be zealously guarded and maintained. The belief prices are too low, thus tending to correct both the rise and which obtains in the world to-day that our dollars are as the fall of prices. In this feature of gold production and good as gold must be maintained. The whole world must consumption we have one of the stabilizing factors in the be convinced that money can be deposited in this country gold standard. The McFadden bill proposes to strike at at any time and withdrawn at any time in any form which this automatic regulator and corrective. It would aggrathe depositor may elect. vate the very conditions which it seeks to remedy. Offering to pay a premium for the production of gold in this country instead of strengthening our position would weaken it. Instead of .assuring the world that the TERMS OF SALE. gold standard Would be maintained by the United States, it would raise a doubt. Public sentiment throughout The following is the eighth and last of a the world would at once assume that our position is weak, series of articles giving data as to current practhat we are in danger of going on a paper basis, and that tice and recent history of terms of sale in the in order to guard against this we regard it as expedient principal industries. Acknowledgment is due to pay a premium on the production of gold. Great the various branches of the Government and Britain, with far greater difficulties than we are facing, the business houses, individuals, and trade has resolutely refused to do anything of the sort in reply associations who have courteously furnished to the petition of her South African gold miners. Unable the information. to maintain the gold standard in its integrity, she has AGRICULTURAL IMPLEMENTS.1 frankly permitted an open gold market in which the depreciation of her paper money could be measured. The ordinary method of distribution in the The so-called "premium" on gold in London represents industry is from manufacturer to branch house, not a real premium on gold bullion in standard gold coin, to retail dealer, to farmer, and the great bulk but rather merely a "discount" on British paper money. of farm implements is marketed in this manner. Action of the kind proposed by the United States would Smaller manufacturers, however, frequently be a red flag to the commercial world. The passage of sell to jobbers, who in turn sell to the retail the McFadden bill instead of strengthening confidence dealers. These jobbers in certain cases act as in the position of the United States would weaken it. agents instead of purchasing the implements It would be considered as a confession of weakness. The outright. Many manufacturers distribute a McFadden bill should be opposed by every well-wisher comparatively large amount of their implements of this country's credit and commercial and financial through other manufacturers' branch houses, in prosperity. sections remote from the former's central The present situation of high costs of production is offices, or where the sales are too small to supabnormal and temporary. When our wholly abnormal port their own branch houses. At the same balance of trade is reduced, leaving $300,000,000 or $400,- time, the system of thus jobbing noncompeting 000,000 worth of goods per month for our domestic markets lines has the advantage of giving the manuto absorb, which they have not been absorbing; when facturers' branch houses a complete line of labor gets over its illusion that prosperity can be maintain- implements. In some centers, e. g., Dallas, ed by the shortening of hours and by reduced efficiency, it is stated that this has largely disappeared, accompanied by higher wages; and when the strain in while there is little handling of such business in our money market is relaxed through reduced extrava- certain sections, e. g., California. The branch gance and increased savings on the part of our people and house system is found especially in the upper their Government, most of the present derangements in Mississippi Valley. A recent study2 shows our industrial system will disappear. that one-half the branch houses of 27 leading Increase of gold mining will return with normal condi- manufacturers, having 282 branch houses and tions. It must not be forgotten, however, that part of the selling to 140 jobbers, are located in nine automatic working of the gold standard depends upon an States—Ohio, Indiana, Illinois, Michigan, Wisincrease in gold production when prices are low and upon 1 In the preparation of this statement, extensive use has been made of a decrease in gold production when prices are high. In- the following reports: Report of the Commissioner of Corporations on creased gold production in a period of low prices and low The International Harvester Co., Mar. 3, 1913. Report of the Commissioner of Corporations on Farm-Machinery Trade Associations, Mar. 15, costs makes it easier for prices to rise again, while dimin- 1915. Report of the Federal Trade Commission on the Causes of High ished gold production in periods of high prices and high Prices of Farm Implements, May 4, 1920. These have been supplemented by the reports of the terms committee and the proceedings of the costs tends to reduce prices and costs again. National Implement and Vehicle Association, and by inquiry of some leading manufacturers and of jobbers in the various sections of the Moreover, the industrial consumption of gold tends to country. increase in a period of high prices, since the price of gold 2 The 1920 report of the Federal Trade Commission. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1150 FEDERAL, RESERVE BULLETIN. NOVEMBER, 1920. consin, Minnesota, Iowa Nebraska, and Mis- change from a commission to a sale basis, ; souri. In these States sales are made to only dealers give their own notes to the manufac- 28 jobbing houses. Jobbing houses are mostly turer, whereas formerly a large amount of located in the far Western and Southern States. farmers' notes were taken by the latter. Long The above study shows that eight States, terms have been most prominent in the case of namely, Oregon, California, Texas, Louisiana, harvesting machinery, and are stated to have Arkansas, Kentucky, Georgia, and Virginia, been established early in the fifties on reaping have 59 jobbing houses and only 47 branch machines. In 1902 it was stated that the houses. It is stated that " perhaps more usual harvesting machine terms were onetractors are sold through independent jobbers third in the fall of the year when purchased or distributors than any other class of farm (called cash), one-third the fall of the following machinery." One authority states that west season, and one-third the fall of the second of the Mississippi River there is a tendency season. Excessive competition, however, frefor the manufacturer to do business through quently extended the time to three years, branch houses, whereas east of the river he is while it also resulted in the grant of one year's more likely to handle his goods direct from extra time without interest when crop condifactory to dealer or through transfer arrange- tions were unfavorable. Machines were also ments at convenient shipping points. As a sold at the close of the harvest on what was result of the shortening of terms which will called "next year's time" without interest, be considered below, as well as the fear of possi- the first payment then only being due the folble price declines, it is stated that dealers do not lowing fall. Plows and special tools were, place as large initial stock orders as formerly, however, sold on short time or cash, while and direct shipments from factories to dealers twine was sold principally for cash in the fall have decreased, so that manufacturers are of the year when sold. About 1905 price required to carry larger stocks at distributing differentials were quoted as between payment in points. The two outstanding changes in dis- cash and in two or three installments, while intributive methods during recent years have terest was added on the notes, but subsequently been the decrease in the consignment of goods only time prices were guoted, subject to specified and the increase in the number of branch houses, cash discounts for prior payment. Terms preespecially in the territories such as California, vailing in 1911 for several leading types of where formerly they were less frequent. implements are shown in the following table: In order to simplify the discussion, the principal kinds of agricultural implements, the terms on which will be considered below, may m P e a n y t - s Notes to mature not N in o te te r s e s t t o f b ro e m ar Agent's cash w be a go co ns n ; v s e e n e i d en in t g ly ma cl c a h s i s n if e ie ry d , in as c lu f d o i l n lo g w p s l : a n F t a e r r m s, lim to i — ted later than— th o (o e f r d m f e r a l o i c m v h e i r n d y e a r t o e y f ) i dis d c a o te u , nt grain drills, etc.; harvesting and haying machinery, including binders, mowers, hay rakes Grain binders Three Nov. 1,1911-12-13. Sept. 1,1911 Oct. 1,1911 Corn binders. ...do.. .....do Oct. 1,1911 I Nov. 1,1911 and hay loaders; tillage implements, including Reapers Two . Nov. 1,1911-12 Sept. 1,1911 I Oct. 1,1911 Mowers ...do.. .....do do i Do. plows, harrows, and cultivators; and thrashing machinery and tractors. The history of terms in the industry may be The system of long credits is stated to have divided into two periods, the line of division been extended to products other than harvestbeing the year 1916. Since that time the ing machinery, such as manure spreaders and standards of terms in the industry are repre- wagons. The increase in the percentage which sented by the set of terms prepared annually credit sales are of total sales in the domestic by a committee of the National Implement and business of the International Harvester Co. Vehicle Association, which was appointed in during the period 1904-1911 is as follows: October, 1915. The terms on which implements are sold were a favorite competitive de- Percentage Percentage vice with manufacturers in the past, additional Year. of sales for of sales for cash. notes and credit being granted as a means of increasing accounts. the volume of business. Machines have been 19041. 70.9 31.1 sold to the farmer on credit through retail deal- 1905.. 74.4 25.6 ers, who act as local agents for the manufac- 1906.. 70.3 29.7 1907., 67.3 32.7 turer. The farmer usually paid part cash at 1908., 69.4 30.6 1909.. 68.9 31.1 the close*of the harvesting season and gave a 1910., 66.4 33.6 promissory note in payment for the remainder 1911. 64.2 35.8 in one or two annual installments. With the Percentages as in original statement; do not equal 100. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

NOVEMBER, 1920. FEDERAL RESERVE BULLETIN. 1151 The data in the following table, giving the cent July 10, net September 1. Shipments percentage each year of the total amount of between July 1 and December 1, 2 per cent 10 notes which matured the first year, second days, net 60 days from date of shipment. For year, etc., also bear on this matter. It is seen payment within 10 days after discount or net that, while notes for the longer terms have due date, an extra 5 per cent trade discount shown an almost uninterrupted decline, notes was permitted on first orders, understood to maturing the first year have decreased slightly, be dated prior to dated ahead dates, and 3 per and those maturing the second year show a cent on second orders. For certain types of great increase. implements the dates were changed somewhat, and in the northern zone were 30 days later throughout. Year. P f m i e r r a s c t t e u y n r e t i a n a g g r. e P m e s r a y e c t c e e u o a n r n r t i . a d n g g e t P m h e i r a r c d t e u n y r t i e a n a g g r e . P m e f r a y o c t e u e u a n r r r t t i h . a n g g e P f m i e f r t a h c t e u y n r e t i a n a g g r. e co T m h p e l ex t . e rm It s w r i e l p l o b r e ts p t o h s u si s b le a re to e s x e c le e c e t d in h g e l r y e only a small number of implements representative of the various classes. 1904 34.7 48.0 14.4 2.9 1905.... 36.0 50.4 12.2 1.4 Wagons.—Until recent years farm wagons 1 19 9 0 0 7 6.... 3 2 0 9. . 6 5 6 5 3 8 . . 0 3 1 7 0 . . 0 2 . . 9 4 0.1 were manufactured largely by firms producing 1908 26.9 66.3 6.4 .4 this product only, and where manufacturers 1909.... 26.5 66.7 6.2 .6 1910.... 25.9 67.7 6.0 .4 have extended their efforts to other lines, this 1911 28.9 64.2 6.5 .4 has generally been in connection with motor 1 vehicles. In 1913 usual terms were " about The efforts of the committee of the national six months except in straight car-load lots, association have been along the line of more which could be carried for a period of nine uniform and shorter terms. A leading purpose months or a year," while some manufachas been to reduce the amount of capital in- turers required one-half the amount in four vested in relation to the volume of business months and the other half in six months, or done; that is, to increase the rate of turnover. 5 per cent 30 days, with an April 1 dating on The terms represent maximum terms only, shipments made during earlier months. In and it is stated in the committee's reports that some cases 5 per cent 60 days was granted on ^it is recommended that shorter terms should the second carload. Long terms were custombe adopted in many instances, especially ary in the South prior to 1916. One manuwhere States are divided by trade centers.'7 facturer stated terms as "in extreme cases in In the construction of these terms, the country carload lots to good customers, 5 per cent off since 1916 hats been divided into four zones— for cash in six months or nine months net; the central, northern (all that portion of the and in addition to this, sometimes about the United States lying north of the southern first of March we begin giving October 1 boundary lines of Oregon, Idaho, Wyoming, dating." These long terms caused much dis- South Dakota, Minnesota, Wisconsin, Michi- satisfaction, and in 1915 certain southern gan, and New York), southern (the States of manufacturers attempted to reduce terms to North Carolina, South Carolina, Tennessee, 5 per cent 30 days to 4 months, net 4 to 8 Arkansas, Louisiana, Mississippi, Alabama, months, the longer periods, both for cash dis- Georgia, and Florida), and the Texas. The count and net terms, applying on larger time granted differs in the various zones, ac- quantity shipments. At a joint conference cording to the type of implement, the con- meeting of the wagon department of the ditions of use in the particular zone, and the National Implement and Vehicle Association time when crop returns are received. There and the Southern Wagon Manufacturers' Ashas been a gradual restriction of the use of the sociation in October, 1916, it was stated that " carry clause," granting additional time on "it was evident that terms are being shortthe portion of the original order or shipments ened," due largely to the cash terms then in during the season unsold at the close of the force on articles purchased by the manufacselling season for the implement in question. turers, and the latter's narrow margin of profit. In 1916 and 1917 the committee also pro- In November, 1916, the National Implevided "standard net terms" to apply to all ment and Vehicle Association recommended goods for all territories except the southern terms on local shipments of 5 per cent 30 days, zone. These were substantially on the basis net 4 months, with datings on car, half car, of 2 per cent 10 days, net 60 days, with certain and mixed shipments of 5 per cent June 1, datings, as follows: Shipments between De- net September 1, 5 per cent one-half Septemcember 1 and March 1, 2 per cent March 10, ber 1, one-half October 1, net December 1, 5 net May 1. Shipments between March 1 and per cent December 1, net February 1, on June 1, 2 per cent 10 days, net 60 days from shipments in December-March, April-August, date of shipment. Shipments in June, 2 per and September-November, respectively, ex- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1152 FEDERAL KESEKVE BULLETIN. NOVEMBER, cept in cotton territory, where the months and Texas—5 per cent April 1, net July 1. bearing net due date of December 1 were from Fall terms are as follows: Central—5 per cent February to August, and the months bearing October 1, net December 1 for shipments net due date of September 1 were only Decem- after May 1. Northern—5 per cent October ber-January. As an alternative, the use of 15, net December 1 for shipments after June 1. terms of 5 per cent 30 days, net 4 months, Southern—5 per cent, November 1, net Januwith April 1 dating on December-March ary 1, for shipments after May 1. Texas—5 shipments and the same datings as in cotton per cent October 1, net January 1, for shipterritory, was provided. In 1916, replies to a ments after April 1. question indicated that the recommendation The carry clause, applying to all zones, of the terms committee were being followed, provides that "any portion of original spring " practically, without exception." Subse- drill orders if on hand May 1, may be settled quent discussions were had relative to further by note on fall terms in such territories as have shortening of terms, and in 1918 the question both spring and fall drill trade/7 except that was referred to a special committee of the in the northern zone the date is June 1 instead. wagon department, but practically no changes Harvesting and haying machinery.—Little in terms were made from those recommended change has occured in the terms noted on the previous year, and the reports for 1919- this class of implements. The terms recom- 20 and 1920-21 made no change from those mended by the association vary somewhat for 1918-19. The less than carload terms between the different zones. Thus, while now recommended &re 5 per cent 30 days, grain binders and reapers in the central and net 4 months, with terms on car, half car, or southern zones bore terms in 1917 of 5 per mixed car shipments of 5 per cent June 1, cent September 1, net November 1, with a net September 1, 5 per cent September 15, carry clause covering 25 per cent of the originet November 15, and 5 per cent December nal order unsold on September 1, which might 1, net February 1, on December-March, be settled for by note due November 1 of the April-July, and August-November shipments, following year, less 5 per cent on September 1, respectively, in the central zone, or the shorter in the Texas zone the dates were one month terms of the wagon department of 5 per cent earlier, namely, August 1 and October 1, and 30 days, net 4 months, on car-load quantities, in the northern zone one month later, namely, and 5 per cent 15 days, net 60 days, on less October 1 and December 1. The only changes than car-load lots, December-March shipments in the 1920 report related to the carry clause, taking April 1 dating. which now covers 25 per cent of shipments Seeding machinery.—In March, 1916, the during the season in all zones other than the following terms were recommended for grain northern, where it applies to 50 per cent of the drills and bar seeders for the central zone: original order. Terms and carry clauses on Spring terms—Net September 1, 5 per cent mowers in 1916 were similar, with the excepcash discount May 1, 4 per cent June 1. Fall tion of a July 1 discount date in the Texas terms—Shipments after June 1 net December zone. In the 1920 report the net date in the 15, 5 per cent cash discount October 1. Twenty northern zone had been changed to November five per cent of original spring purchases on 1, and the carry clause applied to 25 per cent hand May 1 to be carried over to fall terms. of the season's shipments unsold on October 1. In such territories as have no fall trade, there Terms on hay tools (sulky rakes, sweep apply the following spring terms securing note rakes, stackers, loaders, and side-delivery rakes) settlement. Twenty-five per cent of original also vary somewhat between the different zones. fall purchase remaining on hand October 1, While in 1917 in the central zone they were 5 note due same maturity and discount dates per cent July 1, net September 1, in the northfollowing year. ern zone for shipments after November 1 Discount dates were extended 30 days in the and in the southern zone they were one month northern zone and in the cotton States. later or 5 per cent August 1, net October 1, Some dissatisfaction was expressed by cer- and in the Texas zone 5 per cent July 1, net tain manufacturers in view of the earlier net October 1. No carry over was permitted. In due dates and the absence of a carry clause the 1920 report two exceptions were introduced on plows and tillage implements. Certain covering loaders and side-delivery rakes used in changes were made in subsequent years. peanut crop territory in the southern zone and The terms recommended in 1920 vary from hay tools in the Texas zone shipped after zone to zone. Spring terms are as follows: June 1. Central—5 per cent May 1, net September 1. Tillage implements.—In this class of imple- Northern—5 per cent June 1, net November ments relatively slight changes have occurred 1, for shipments after November 1. Southern in the recommended terms, and a recent re- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

NOVEMBER, 1920. FEDEKAL RESERVE BULLETIN. 1153 port states that they "appear to be receiving lem considered at their first meeting in 1884. the substantial support of members of the In November 1909, a resolution was passed by plow and tillage implement department," and the Thrasher Manufacturers7 Association limitthat "it appears that even shbrter terms are ing the cash discount for the year 1911 to 6 pei favored." These terms for three types of cent, and on single sales fixing a maximum implement in 1917 were as follows: discount to agents of 5 per cent 30 days. Nc Steel and chilled walking plows: Central— cash discount was to be allowed after 90 days Spring, shipments after November 1, 5 per from delivery, and the date for the agent's cent April 1, 4 per cent May 1, net July 1; fall, cashing all his season's business was to be fixed shipments after May 1, 5 per cent September 1, in the contract. In November, 1910, the maxnet November 1. Northern—Spiing, ship- imum cash discount date was fixed at October ments after November 1, 5 per cent May 1, 4 1, the maximum agent's cashing date at per cent June 1, net September 1; fall, December 1, and his cash discount at not ovei shipments after June 1, 5 per cent Octo- 6 per cent plus interest from October 1. In ber 1, net December 1. Southern—Spring, 1912, it was reported that more complaints shipments after October 1, February 1 dating had been received than ever before about selling 5 per cent 30 days, net 4 months; fall, ship- on extremely long terms, and in the following ments June 1-September 30, September 1 year "resolutions were adopted recommending dating 5 per cent 30 days, net 4 months. that members endeavor to increase cash pay- Texas—Spring, shipments after October 1, ments and bring about shorter terms. In 1917 January 1 dating 5 per cent 30 days, net 4 the National Implement and Vehicle Associamonths; fall, shipments after Apiil 1, Septem- tion established a tractor and thrasher departber 1 dating 5 per cent 30 days, net 4 months. ment, and terms have been regularly considered In 1920 the only change was the elimination by a committee. In 1919 the committee again of the 4 per cent discount in the central and recommended the terms adopted in 1918 for the northern zones. year 1919, but inasmuch as two members had Lever and disk harrows: Central—Spring, modified them, recommended that the modified shipments after November 1, 5 per cent May 1, terms be made known to all the members, and net July 1; fall, shipments after May 1, 5 per that the adopted terms be changed to meet cent September 1, net November 1. North- these modifications. It was also recommended ern—Spring, shipments after November 1, 5 that one week's notice to the committee of per cent June 1, net September 1; fall, ship- adoption of more liberal terms by any member ments after June 1, 5 per cent October 1, net be required. The present recommended terms December 1. Southern and Texas—Same as are as follows: for plows above. There was no change in 1920. Class I (of specified power, or costing not Wheel cultivators: Central—5 per cent over $1,500 to dealer).—To consumers: Cash on June 1, 4 per cent July 1, net September 1. delivery or one-half on delivery and one-half Northern—5 per cent July 1, 4 per cent Au- in 6 months. Deferred maturity December 1. gust 1, net October 1. Southern—March 1 Future dating shipments after November 1 and dating 5 per cent 30 days, net 4 months. before April 1 bear April 1 (northern zone Texas—February 1 dating 5 per cent 30 days, May 1). net 4 months. In 1920 the only changes were To dealers: Class I.—Shipments after April the employment in the northern zone (other 1, cash deposit of $50 on first tractor and $25 than in New York and New England) of dis- on each additional one. Note for balance due count dates one month earlier, and the addition October 1 or earlier. Small separators—if in all zones of a clause covering alfalfa wheel necessary, 25 per cent on delivery, balance in cultivators for fall trade. fall of that or next year. Thrashing machinery and tractors.—The man- Class II ($l,500-$2,500).—Not over two falls. ufacture of thrashers was developed by a few- Class III ($2,500 and over).—Not over large firms, which gradually extended "their three falls. Deposit required on all orders in business into other lines, particularly into Class I sold ior cash on delivery, of $50 tractors and portable engines.'7 Thrashing on first and $25 on each additional tractor. outfits, including engine and separator with an Discounts for cash on delivery, or on first attachment for stacking straw and chaff, have fall, not over 6 per cent; or by dealer been usually sold to thrashermen, who thrash during first fall, not over 10 per cent, for grain on contract. Due to the expense of the payment by the following dates: In southern outfits, credit sales have been required, as- zone, September 1; central, October 1; northsignment of earnings being taken as security. ern and Texas, November 1. Reports from The manufacturers early were interested in the various sources state that tractors are now credit problem, and it was the principal prob- sold largely on a cash basis. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1154 FEDERAL HESEftVE BULLETIN. NOVEMBER, 1920. Inasmuch as long terms have prevailed in business. This is illustrated in the following the implement industry, the usual practice has table, showing the annual amount of notes been to take a promissory note to cover the and bills receivable in the case of the above net period, rather than to have it run on open manufacturers: account. These notes have varied in length from a few months to three or four years. Bills receiv- Accounts re- During the last few years there has been a Year. able. ceivable. Total. strong advocacy of the trade acceptance by the National Association. In 1916 a recom- 1913. $95,947,970 $64,549,983 $160,497,953 1914 96,180,296 68,627,542 164,807,838 mendation of the National Association of 1915. 83,165,828 51,397,723 134,563,551 Credit Men was indorsed "that sellers send 1916 60,755,297 45,525,797 106,281,094 1917. 46,419,128 44,744,801 91,163,929 notes or acceptances for purchaser's signature 1918 42,538,712 44,512,811 87,051,523 with all invoices." There has also been an advocacy in some quarters of the elimination It will be observed that from 1913 to 1918 of the cash discount. In February, 1918, the the receivables have decreased almost 50 per wagon department recommended to the terms cent, notwithstanding the increased prices of committee that it "work along the lines of implements and the fact that gross sales of the elimination of the cash discount, with the these companies increased during the period wider use of the trade acceptance/7 Accom- from $229,000,000 to $339,000,000. The depanying these efforts has been an attempt to crease, it has been suggested, may be due have the retail dealer in turn obtain paper, partly also to improved business conditions, either note or trade acceptance, from the which make it possible for farmers and retail farmer, rather than to permit the account to dealers to pay cash for larger amounts of their run along on open account. It has been goods. The achievements of some concerns stated from Dallas that branch houses are are indicated in the following statement of a reported to make very little use of the trade leading authority: "For a period of 20 years acceptance, employing notes instead, while prior to 1915 it was not an unusual thing for jobbers use notes for the more expensive large branch houses here to have outstanding at implements and to a growing extent trade the close of their fiscal year accounts and notes acceptances in the case of "net goodsn (small receivable equivalent to 60 per cent of their sales implements, tools, etc.), "amounting to from for the year. During the last few years it has 20 to 25 per cent of the total business.7' not been an unusual thing for branch houses to Although the acceptance is used only to a lim- close their year's business with the total amount ited extent, reports recently received indicate of accounts and notes receivable not exceeding that the users are generally satisfied with it. 20 per cent of the sales for the year, and some During the last few years greater uniformity of us closed with less than 10 per cent outof terms and lessening of the credit period has standing. Prior to 1915 only about 50 per existed. The financing burden has been cent of our total sales were discounted; during shifted "from the manufacturer to the retail the last few years more than 80 per cent of our dealer and the local country bank.77 This sales to dealers were discounted.'7 change is reflected in the greater rapidity of The data which have been received relative turnover of capital invested by manufacturers, to jobbers7 operations indicate that in this, as in as is shown by the following table covering 22 other industries, the jobber purchases largely companies: on a cash basis, while selling on credit to a considerable extent. Terms are cited as frequently sight draft with bill of lading attached, Total invest- Period Year. p m le e m n e t n i t n b im us - i- To s t a a l l e s n . et re fo q r u i o r n e e d b ti u m t e o i n n s la te rg a e d r . siz W ed h il o e r d i e n r s a s c a o l n e s m id a e y ra b bl e e m n a u d m e b o e n r turnover ness. (months). of cases it was stated that there is no difference in terms made by manufacturers to jobbers 1913 $355,782,398 $215,684,945 20 and to manufacturers7 branch houses, it is 1914 390,351,286 195,647,453 24 1915 395,722,107 181,700,918 26 stated from a number of sources that there is 1 1 9 9 1 1 6 7 3 3 8 6 3 7 , , 5 52 2 5 6 , , 6 9 2 1 6 1 2 2 0 6 0 1 , , 8 50 4 9 8 , , 3 1 1 2 9 5 2 1 3 7 some difference. While in a majority of cases 1918 386,408,735 326,636,666 14 no specific information on this point was obtained, from Richmond it was stated that The reduction of the length of the credit " terms to jobbers are usually shorter than period not only increased the rate of turnover, those given to manufacturers7 branch houses.77 but also decreased the amount of bills and Jobbers7 terms to dealers are stated generally accounts receivable, as well as the amount of to follow closely those made by manufacturers, capital required to carry on a given volume of the latter providing the standard. In certain Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

NOVEMBER, 1920. FEDEEAL RESERVE BULLETIN. 1155 cases it was stated, however, that jobbers' general pharmaceutical line goes through the terms frequently were more liberal than were wholesaler, the balance going direct from the manufacturers' terms, although from Portland, manufacturer to the retailer. The following Oreg., it was stated that manufacturers' branch are the results of a survey made in 1917: houses in some cases gave very long terms on tractors and thrashing machines, which the in- Net terms. dependent jobbers were unable to do because Discounts. of their smaller financial ability. Whole Resaler. tailer. DRUGS AND MEDICINES. 30 days 17 12 1 per cent 10 days (by all 30-day houses except two, which give 2 per cent 10 Manufacture and import.—The drug business days). 60 days 4 7 2 per cent 10 days (by all 60-day houses). as a whole may be generally divided into four 10 days 1 classes: (1) Drugs and chemicals; (2) proprie- 4 months... 1 tary articles; (3) druggists' sundries, and (4) druggists' and hospital supplies and utensils. Private formula business, that is, the manu- The first class may be subdivided into the facture of specialties under formulas owned by following groups: (1) Pharmaceutical, includ- others, carried instead 1 per cent 10 days, net ing pills, tablets, fluid extracts, etc.; (2) bio- 30 days, except for two houses giving net terms logical, including vaccines, bacterins, anti- of 60 days. As a small number of the larger toxines, etc.; (3) medicinal and technical houses, however, extend terms of 2 per cent 10 chemicals; and (4) crude drugs and essential days, net 60 days, some of the firms having 30oils. Perfumes, rubber goods, soaps, soda day terms occasionally extend 60 days when infountain supplies, cosmetics, brushes, combs, sisted upon. It is estimated, however, that 90 etc., are included in the general classification per cent of the number of wholesalers discount of sundries. Surgical dressings, plasters, bot- their bills, while in the case of retailers from tles, corks, funnels, filters, mortars, pestles, 40 to 50 per cent discount, although one of scales, balances, bones, etc., properly belong the largest manufacturers shows 75 per cent. to the classification of druggists' and hospital One authority states that the percentage of supplies and utensils. Proprietary articles retailers discounting varies with the season of include generally speaking all so-called patent the year, the percentage for his house during medicines advertised and sold under trade- the first six months averaging a little over 40 marks. The method of distributing the greater per cent, falling to almost 25 per cent during the proportion of all these classes of goods is from summer months, and then increasing during the first hands, either manufacturer or im- the latter part of the year to almost 50 per cent. porter, to the wholesale druggist, who in turn Due to the frequency and small size of pursells them to the retail druggist. chases, the trade acceptance is not employed Crude drugs and essential oils are assembled by the majority of manufacturers. in the main by houses importing them as well as Sales of proprietary medicines are made by distributing domestic goods of this character. manufacturers to wholesalers and to retailers, Terms on crude drugs, medicinal and technical the individual manufacturer usualty confining chemicals and essential oils are almost without his entire business to one of the two methods. exception 1 per cent 10 days, net 30 days. Sales to wholesalers, it is stated, in genera, The same terms apply generally in the sur- carry a cash discount of 2 per cent 10 daysl gical dressing field, although the maturity date although a limited number grant 1 per cent, is frequently extended to 60 days on ship- some 3 per cent, and quite a number 5 per ments to the far southwest and to the Pacific cent. Sales to retailers carry the same net coast and Rocky Mountain territory. terms as those to wholesalers, maturity usually While a large part of the general phar- being in 30, 60, and 90 days, with a discount maceutical line goes direct to the retail druggist for cash varying from 1 to 5 per cent if invoice from the manufacturer, there are some manufac- is paid within 10, 20, or 30 days. In the case turers who market their entire line exclusively of seasonable preparations, longer time to the through the wholesale druggist. Of the total retailer is required in off seasons, and up to 4, volume of the drug business to-day, the phar- 6, and 9 months may be given at times. The maceutical branch, including pharmaceutical general average for the industry has been estispecialties (semiproprietary and noncompeti- mated at 45 days. tive in character), aggregates not more than Sales of druggists' sundries are made by manfrom 15 to 20 per cent. The larger propor- ufacturers to both wholesalers and retailers. tion, probably 85 per cent, of pharmaceutical Terms for some years have been largely 2 per specialties is sold to the retail druggist through cent 10 days, net 30 days, from date of invoice, the wholesaler, while about 25 per cent of the but Pacific coast customers may be given 2 per Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1156 FEDERAL RESERVE BULLETIN. NOVEMBER, 1920. cent 30 days, net 60 days. Several leading percentage of accounts taking the cash dismanufacturers report that from 50 to 70 per count and the decrease of the average number cent of their customers discount their bills. It of days7 business outstanding, are of interest is stated that the trade acceptance is not em- in this connection. This change in terms reployed in the industry. flects the movement for the abolition of sep- Wholesale.—Since January 1, 1905, recom-arate billing of different classes of items, and mended terms of the National Wholesale 80 per cent of the replies in the recent survey Druggists Association, to apply to mixed in- of the credits and collections committee of the voices, have been 1 per cent 10 days, net 30 National Wholesale Druggists7 Association days. These terms prevail practically over favored uniformity. the entire country, with the exception of the In connection with this item, difficulty is entire State of Texas and a narrow belt run- experienced with competition from jobbers of ning east from Texas to the Atlantic coast and stationery and school supplies who also carry including parts of Arkansas, Tennessee, Ala- druggists' sundries. The situation in this rebama, and Georgia, where, with a few excep- gard appears substantially as follows: The tions, the cash discount is 2 per cent, although retailer has expanded his business to include net terms are 30 days. It is stated, however, side lines handled by other retailers also, and a that in these territories the discount is gradually similar change is noted in the wholesaler's being changed to a universal 1 per cent. An business. The latter, however, in this developincreasing tendency toward proximo terms ment comes to handle certain lines which are was reported some years ago and found in par- distributed only to a small extent through the ticular in the East and Southwest. In 1915 drug trade, and thus reaches out to sell these data obtained from 135 houses of dates for the items to exclusive retailers as well as to rediscounting of city bills showed 88 houses tailers of drugs. In consequence, a measure of which specified the 10th, 26 the 15th, 6 the 5th, diversity is introduced into the terms on which and 1 the 20th, while 2 required settlement merchandise is purchased by the wholesale any time during the following month, 10 twice druggist, which is reflected as well in the terms a month and 2 four times a month. on which he sells. He therefore has under- In. a few lines, when, sales are large enough to taken, as in the case of stationery, to induce the be billed separately, 2 per cent 10 days, net 30 members of the other industries to employ the days, is allowed. On druggists' sundries the regular drug terms of 1. per cent 10 days, net 30 cash discount now ranges from 1 per cent to 2 days. In pursuance of this policy, a committee per cent. There has been a movement in was appointed in 1915, and reported in 1916 various sections to include the item in the that since January first of that year many leadgeneral terms of 1 per cent 10 days, net 30 days, ing stationery houses had reduced their cash which is meeting with some success. New discount from 5 or 6 per cent to 2 per cent. England and the Middle States in 1914 already Terms favored were 1 per cent 10 days, net 30 showed quite uniformly 1 per cent 10 days, net days, on the item, with the exception that 30 days, while on the Pacific coast all houses where competition from wholesale grocers, have for the last three or four years employed book, stationery and school supply houses did these terms. In 1916 data obtained from 130 not permit, 2 per cent might be granted. In houses were as follows: 1917 employment of the regular terms was recommended on sundries ordered in the regular course of business, leaving it to the discre- Discount. Time. tion of those who employed special salesmen New- to make the cash discount 2 per cent instead. Per cent. Total. M E l a a i n n d n g d d d - le M W id es d t l . e S S t o e a u r t n t e h s - . S P t a a c t i e fi s c . Days. N b u e m r. - the A re s t i h s e a r l e a t c a k i l o d f r f u i g n a t n r c a i d a e l r i e s s o p v o e n r s c i r b o i w lit d y e d o , n a t n h d e States. part of its members, the enforcement of terms by wholesalers is rendered more difficult. It Net 1 1 30 81 50 23 11 10 6 60 48 has recently been stated that 44.5 per cent 2 54 4 26 23 1 90 1 of the 50,000 retail druggists in the country 3 3 1 2 5 3 1 2 have either no capital rating or one of not 6 .. 18 18 8 1 over $2,000, 23.5 per cent a rating of from $2,000 to $5,000, and 14 per cent a rating of This is not representative, however, of pres- from $5,000 to $10,000. Ninety-two per cent ent conditions, as terms have been shortened as of those in the first-mentioned class ha^e a indicated in the preceding paragraph and the second or third grade credit rating or no capital discount reduced. The figures given in the and credit rating at all, while two-thirds of tables herewith, showing the increase in the those in the second class have a second or Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

NOVEMBER, 1920. FEDERAL RESERVE BULLETIN. 1157 third grade credit rating. In 1919 it was the basis of money value about 60 per cent of estimated that, of annual sales of $420,000,000, all.the dyes of domestic manufacture are sold wholesalers carried past due accounts of about direct by manufacturers to consumers, while $20,000,000. The practice of charging interest perhaps 15 per cent are sold to dealers for resale, on past due balances, or the use of interest and the remaining 25 per cent are sold for exbearing notes, has been consistently advocated, port. Prior to the war about 90 per cent of the and all Pacific coast jobbers are now doing so. dyestuffs sold in America were sold by im- The practice also prevails in Texas, Virginia, porters. As a result of the shortage during the and in isolated parts of other southern States, war, dealers received little consideration, as although not all collect the full interest charged. producers, it is stated, felt themselves obligated One house reports that it collects all interest to supply their established consuming trade. on past due accounts by adding it to the invoice. Several leading producers of alcohol report Interesting in this connection also are the fol- approximately one-half their output sold to lowing figures showing percentage loss by bad wholesalers, all or a majority of the remaindebts. der going to industrial consumers. In the case of heavy chemicals, the situation varies with the particular chemical in question. Thus 1909 1914 1919 it is stated that the output of sulphuric acid is N M e id w d l E e n W gl e a s n t d er a n n S d t a M te i s ddle States 0. . 3 3 7 14 0. . 3 3 3 5 0. . 1 2 7 1 2 9 sold almost entirely direct to the consumer, Southern States .56 .713 .248 whereas probably one-half the production of Pacific Coast States. .38 .382 .16 General average .40 .442 .2 . caustic soda, soda ash, etc., is sold through jobbers. A considerable amount of heavy chemi- While all sections show a considerable de- cals is imported, and distributed by the importcrease, that for the South is particularly pro- ing house. Jobbers in many cases handle also nounced. As would be expected, the per- apparatus and laboratory supplies. centage of cash discounters has been in the The general terms in the several branches of past relatively small, the average in 1916 being the chemical industry are 1 per cent 10 days, reported as approximately 20 per cent, but net 30 days. Most manufacturers report that there has been a substantial increase since there has been no general change in terms durthat time. An indication of the change in the ing the past decade, but several leading manuactual length of terms employed is afforded by facturers report previous use, in one case piior the following figures of number of days' sales to about the opening of the present year and in outstanding: the other case prior to 1914, of a cash discount of 2 per cent, the former with net terms of 60 States. 1909 1914 1919 days. It is stated from one source that sellers since about August have been quoting New England and Middle States 55 53.7 39.3 Middle Western States 43 48.0 37.8 cash terms, even to responsible purchasers. Southern States 67 68 0 42 6 This is ascribed to present financial conditions, Pacific coast . 52 56.0 40.5 General average 54 55.2 40.0 merchandise being sold under cost, "merely to convert inventory into cash." Longer terms The greatest decrease is again evident in are granted in certain cases on shipments to a the case of the southern States. distance. Thus while proximo terms are at In view of the interest expressed by a few times granted by one manufacturer on such members, the National Wholesale Druggists shipments, 1 per cent 30 days, net 60 days, is Association appointed a special committee granted by another manufacturer to Pacific which carefully considered the trade accep- coast purchasers. In some sections of the tance. A referendum vote was later held country, states a leading manufacturer, "local which, however, " clearly demonstrated that conditions have brought about a situation the trade in general does not look with where the terms are standard on practically all favor upon the use of the trade acceptance in chemicals in the form of net cash 30 days, no the industry." discount." CHEMICALS. For certain chemicals, different terms are employed. Thus one manufacturer quotes a For the present purpose, the most satisfac- discount of only one-half per cent on potash, as tory classification of chemicals will be into against 1 per cent on the other products. "heavy" chemicals and organic chemicals. While denatured alcohol carries the regular The latter include drugs and pharmaceuticals terms, ethyl or tax-paid alcohol is sold on cash (which were considered above), and dyestuffs terms, specified as net cash 3 days or spot cash and intermediates. The great majority of (within 10 days). Some manufacturers and chemicals are sold by manufacturers direct to dealers in dyes are stated to have allowed a 2 industrial consumers. It is estimated that on per cent discount as a concession to draw trade. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1158 FEDERAL RESERVE BULLETIN. NOVEMBER, 1920. but the majority have employed the regular countries (Amsterdam, Copenhagen, Stockholm, terms. Zurich, Madrid, Buenos Aires, and Valparaiso), Little use of trade acceptances in general is and (3) the principal centers in countries hav1 reported in the industry. From one source, ing a silver standard (Bombay, Hongkong, and however, they are reported to have become Shanghai); also the average New York price popular in certain quarters about two years of silver per fine ounce. In the tables actual ago, but were gradually abandoned until re- rates and percentages of par are shown, while cently, when they have again been employed. the curves are plotted on the bases of percent- Last spring the majority of manufacturers ages of premium or discount at which the curfrom whom data were obtained reported col- rencies of the different countries were quoted lections prompt, with the majority of accounts in the New York market. taking the cash discount. It was recently Similar information is shown for the period estimated that normally perhaps two-thirds of from the beginning of the war to the summer of the total sales of dyestuffs to consumers in the 1918 in the FEDERAL RESERVE BULLETIN for country are discounted, many purchasers, September, 1918, pages 837 et seq., and for the however, running 2 or 3 days over the 10-day calendar years 1918 and 1919 in the FEDERAL period. At the present time it is estimated RESERVE BULLETIN for January, 1920, pages that " two-thirds of the invoices for dyestuffs 49 et seq. Explanations as to the bases of sold to consumers or dealers are not discounted, calculations made in the earliest study apply and perhaps one-third of the total invoices run to the present table and charts which cover the beyond the 30-day period, some of them to 60 two-year period from October, 1918, to Ocdays or more." tober, 1920. Attention is called to the fact Terms of jobbers handling also apparatus that only the highest quotations for each and supplies vary somewhat. While certain month are shown, and that in the case of many houses employ the regular chemical terms of 1 of the currencies the low quotations for the per cent 10 days, net 30 days, others either month are considerably below those given in omit the cash discount entirely, or else quote the tables. it only to a small number of accounts. Special As is well known, the quotations on sterling, terms may be granted to educational institu- francs, and lire began to decline when in March, tions, ranging in one case from 30 days to 12 1919, the respective Governments discontinued months, and averaging 90 days. While several their support of exchange. In the case of sterhouses report no change in terms during the ling, the high rate dropped from 4.758 in March, past decade, one notes a decrease in the cash 1919, to 3.4525 in February, 1920; in the case discount on laboratory apparatus from 2 per of francs, from 18.30 in March, 1919, to 6.93 cent to 1 per cent, and a tendency to closer in April, 1920; and in the case of lire, from collections. Very little use of the trade ac- 15.72 in March, 1919, to 4.91 in April of the curceptance is reported. One house, selling a rent year. All the three currencies rallied someconsiderable amount of goods to retail drug- what in the spring and early summer of 1920, gists, estimates that 15 per cent of accounts are but declined again in the most recent months, discounted, 50 per cent paid promptly, 25 per the latest high quotations of sterling being cent paid slowly, 9 per cent paid extremely only slightly above the February, 1920, level, slowly, and 1 per cent losses or collections re- and those of francs and lire having fallen below quiring legal aid. A middle western house the low points reached last spring. Japanese practically granting no cash discount and selling exchange showed a general downward tendency, largely to educational institutions reports one- falling from 54.75 in November, 1918, to 48 in third of receivables under one month old, 23 March, 1920; by May it had improved to 52, per cent under two months, 12J per cent under but declined again to 51.25 in October. Brathree months, 11 per cent under four months, zilian exchange fluctuated considerably during and the remainder under eight months old, the period under review, rising from 25 in being distributed in point of age between the October, 1918, to 30.875 in December of the intervening months. following year, but declining to 18.375 in October of the current year. German marks were quoted in New York at Foreign Exchange Rates. 8 cents in July, 1919, when dealings in German currency were resumed; since that time the In the following tables and charts are quotations declined, the lowest figure of 1.14 shown, the movements of monthly exchange being shown for last February; in October rates in, New York on (1) principal former bel- marks were quoted as nigh as 1.65 cents. Ausligerent countries (rates on London, Paris, trian crowns, worth 20.26 cents at par and Milan, Yokohama, Rio de Janeiro, Berlin, and quoted at 3.5 cents in July, 1919, declined to Vienna), (2) the principal centers in neutral 0.44 cent in October. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

NOVEMBBE, 1920. FEDERAL RESERVE. BULLETIN. 1159 EXCHANGE RATES IN NEW YORK ONTORMER BELU6ERENT COUNTRIES. ! 60 60 SO SO 40 40 30 30 20 20 YOKOHAMA 10 to ••••- 0 PARUNE 0 !0 fO 20 20 30 30 40 40 SO SO 60 60 70 70 BERUti SO 40 VIENNA SO SO 100 100 1918 1919 1320 Movement of exchange rates {highest rates for sight drafts during month) in New York on principal financial center during period from October, 1918, to October, 1920. I. RATES ON MARKETS IN FORMER BELLIGERENT COUNTRIES. [Sterling quotations are in dollars and cents; all other currencies are quoted in cents.] London Paris Milan Yokohama Rio de Janeiro Berlin Vienna (4.8665=100). (19.3=100). (19.3=100). (49.85=100). (32.444=100). (23.82=100). (20.26=100). 1918 Per ct. Per ct. Per ct. Per ct. Per ct. Per ct. Per ct. October 4.755 97.71 18.29 94.77 15.75 81.61 54.63 109.59 25.0 77.05 November 4.7575 97.76 18.55 96.11 15.75 81.61 54.75 109.83 27.0 83.22 December 4.7585 97.78 18.34 95.03 15.75 81.61 53.25 106.82 27.20 83.84 1919 January 4.7585 97.78 18.33 94.97 15.71 81.40 52.25 104.81 26.75 82.45 February 4.7585 97.78 18.32 94.92 15.72 81.45 51.50 103.31 26.10 80.45 March 4.758 97.77 18.30 94.82 15.72 81.45 51.00 102.31 26.375 81.29 April 4.6725 96.01 17.01 88.13 14.25 73.83 51.375 103.06 27.00 83.22 May 4.6925 96.42 16.47 85.34 13.33 69.07 51.75 103.81 28.25 87.07 June 4.6350 95.24 15.95 82.64 12.74 66.01 51.75 103.81 28.25 87.07 July 4.57 93.91 15.40 79.79 12.71 65.85 51.25 102.81 28.00 86.30 8.00 33.59 3.50 17.27 August 4.3525 89.44 13.70 70.98 11.60 60.10 50.75 101.81 27.00 83.21 6.25 30.44 3.00 14.80 September 4.2625 87.59 12.79 66.27 10.56 54.72 50.75 101.81 25. 875 79.75 4.60 19.31 2.625 12.95 October 4.3225 86.97 11. 93 62.14 10.26 53.16 50.75 101.81 25.875 79.75 4.375 18.37 1.65 8.14 November 4.1625 85.53 11.31 58.60 9.94 51.50 50.75 101.81 30.00 92.46 3.25 13.64 1.00 4.93 December 3. 9875 81.94 10.08 52.23 8.10 41.97 50.50 101.30 30.875 95.16 2.60 10.92 .73 3.60 1920 January 3.7875 77.83 9.28 48.08 7.55 39.12 50.375 101.05 27. 875 85.92 2.05 8.61 .65 3.21 February 3.4525 70.94 7.48 38.76 6.20 32.12 48.75 97.79 26.50 81.68 1.14 4.79 .40 1.97 March 3.9525 81.22 7.56 39.17 5.74 29.74 48.00 96.29 26-75 82.45 1.57 6.59 .55 2.71 April 4.0175 82.55 6.93 35.91 4.91 25.44 49.75 99.80 27.25 83.99 1.95 8.19 .55 2.71 May 3.9150 80.45 7.95 41.19 6.04 31.30 52.00 104.31 26.375 81.29 2.94 12.34 .76 3.75 June 3.9875 81.94 8.39 43.47 6.21 32.18 51.30 102.91 26.00 80.14 2.75 11.54 .80 3.94 July 3.95125 81.19 8.54 44.25 6.15 31.87 51.375 103.06 23. 875 73.59 2.65 11.13 .72 3.55 August 3.7075 76.18 7.61 39.43 5.29 27.41 51.50 103.31 21.75 67.04 2.29 9.61 .61 3.01 September 3.5625 73.20 7.01 36.32 4.69 24.30 51.50 103.31 19.625 60.49 2.03 8.52 .47 2.31 October 3.5075 72.07 6.75 34.97 4.18 21.66 51.25 102.81 18.375 56.64 1.65 6.93 .44 2.17 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1160 FEDERAL RESERVE BULLETIN. NOVEMBER, 1920. EXCHANGE RATES 1NNEWYORK ON COUNTRIES NEUTRAL DURING THE WORLD WAR. Movement of exchange rates {highest rates for sight drafts during month) in New York on principal financial centers during period from October, 1918, to October, 1920—Continued. II. RATES ON MARKETS IN COUNTRIES REMAINING NEUTRAL DURING THE WAR. [All currency quotations are in cents.] Amsterdam Copenhagen Stockholm Zurich Madrid Buenos Aires Valparaiso (40.2=100). (26.8=100). (26.8=100). (19.3=100). (19.3=100). (96.48=100). (18.80=100). 1918 Per ct. Per ct. Per ct. Ptrct. Per ct. Per ct. Per ct. October 46.75 116.29 28. 75 107.28 31.8 118.66 21.65 112.18 22.65 117.36 103.00 106.76 30.17 160.48 November.. 42.25 105.10 27.00 100.75 29.0 108.21 20.32 105.28 20.70 107.25 102.85 106.60 25.51 135.69 December.. 42.75 106.34 27.00 100.75 29.45 109.89 20.92 108.39 20.20 104.66 102.75 106.50 22.78 121.17 ! 1919 January. 42.75 106.34 26.80 100.00 29.10 108.58 20.75 107.51 20.14 104.35 102. 75 106.50 21.19 112.71 • February... 41.25 102. 61 26.125 97.48 28.15 105.04 20.60 106. 74 21.10 109.33 102.45 106.19 20.45 108. 78 March 41.125 102.30 26.00 97.01 28.15 105.04 20.70 107.25 21.10 109.33 102.375 106.11 18.97 100.90 April 41.25 102. 61 25.375 94.68 27.125 101.21 20.33 105.34 20.375 105.57 101.15 104. 84 20.33 108.14 May 40.25 100.12 24.90 92.91 26.70 99.63 20.33 105. 34 20.25 104.92 102.25 105.98 20.92 111.28 June 39.25 97.64 24.625 91.88 26.25 97.95 19.31 100.05 20.06 103.94 100.375 104.04 21.10 112.23 July 38.75 96.39 23.50 87.69 25.50 95.15 19.08 98.86 19.72 102.18 98.50 102.09 20.00 106.38 August 37.5625 93.44 22.05 82.28 24.90 92.91 17.92 92.85 19.75 102.33 96.625 100.15 19.00 101.06 September.. 38.125 94.84 22.40 83.58 24.60 91.79 18.28 94.72 19.25 99.74 96.75 100.28 19.75 105.05 October 38.0625 94.68 21.75 81.16 24.60 91.79 17.99 93.21 19.28 99.90 96.48 100.00 20. 625 109. 71 November.. 38.00 94.53 21.20 79.10 23.85 88.99 18.18 94.20 20.10 104.15 98.50 102.09 19.75 105.05 December.. 38.25 95.15 19.90 74.25 22.30 83.21 20.08 104.04 19.90 103.11 98.52 102.11 19.75 105.05 1920 January. 39.125 97.33 19.10 71.27 21.55 80.41 18.28 94.72 19.20 99.48 98.295 101.88 22.75 121.01 February... 37.875 94.22 15.65 58.40 19.15 71.46 17.33 89.79 18.00 93.26 99.15 102.77 21.625 115.03 March 37.125 92.35 18.65 69.59 21.70 80.97 17.18 89.02 17.90 92.75 98.75 102.35 22.00 117.02 April 37.50 93.28 18.80 70.15 22.20 82.84 18.12 93.89 17.90 92.75 98.30 101.89 22.00 117.02 May 36.70 91.29 17.05 63.62 21.65 80.78 17.90 92.75 16.97 87.93 97.16 100.70 20.25 107. 71 June 36.625 91.23 17.15 63.99 22.00 82.09 18.25 94.56 16.70 86.53 100.12 103. 77 19.625 104.39 July 36.30 90.30 16.73 62.43 22.10 82.46 18.14 93.99 16.52 85.60 94.886 98.35 20.875 111.04 August 33.875 84.27 15.70 58.58 21.00 78.36 16.95 87.82 15.27 79.12 89.25 92.51 20.125 107.05 September.. 31.90 79.35 14.55 54.29 20.40 76.12 16.45 85.23 14.95 77.46 86.647 89.81 19.125 101. 73 October 31.06 77.26 14.05 52.43 19.90 74.25 16.07 83.26 14.66 75.96 82.75 85.77 16.00 85.11 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

NOVEMBER, 1920. FEDERAL RESERVE BULLETIN. 1161 EXCHANGE RATES IN NEW YORK ^ ON COUNTRIES WITH SILVER STANPARP. | ALSO NEWTORK PRICE OrSILVER. P. s i 160 160 / ISO \ ISO / \ MO MO 130 / \ 130 'ass. 120 / f/ > \ 120 s no no \ / > '/ KJO 100 30 \ «—•" V so \ \ \ 60 60 \ *> 70 yn / \ 60 60 \ jm OU oO \ B0M8AT 40 40 30 / \ 30 20 20 ... 10 10 0 J * S 9 ^ * * i 3 - : k 0 BASELinE 1913 1 1919 1 19BO Movement of exchange rates (highest rates for sight drafts during month) in New York on principal financial centers during period from October, 1918, to October, 1920—Continued. III. RATES ON MARKETS IN SILVER COUNTRIES. [All currency quotations are in cents.] Average New York price of silver. Bombay Hongkong Shanghai Per cent (32.44=100). (47.16=100). (65.49=100). Price of average per fine price for 1913 ($0.60641). 1918. Per cent. Per cent. Per cent. . October 36.00 110.97 87.75 186.07 134.00 204.61 $1.0113 166.77 November 35.65 109.90 80.00 169.64 124.00 189.34 1.0113 166.77 December 35.875 110.59 82.00 173.88 125.00 190.87 1.0113 166.77 1919. January 35.65 109.90 81.00 171.76 126.00 192.40 1.01125 166.76 February 35.65 109.90 78.00 165.39 123.00 187.81 1.01125 166.76 March 35.875 110.59 75.25 159.56 114.00 174.07 1.01125 166.76 April 35.65 109.90 80.25 170.17 117.75 179.80 1.01125 166.76 May 42.50 131.01 87.00 184.48 125.50 191.63 1.07111 176.63 June 42.50 131.01 84.00 178.12 127.50 194.69 1.10430 182.10 July 43.00 132.55 83.00 176.00 125.00 190.87 1.06394 175.45 August 43.50 134.09 86.00 182.36 135.00 206.14 1.11398 183.70 September. 45.00 138.72 88.50 187.66 136.50 208.43 1.14652 189.07 October 44.00 135.64 96.00 203.56 142.00 216.83 1.19154 196.49 November 44.75 137.95 106.00 224.77 175.00 267.22 1.27609 210.43 December 46.25 142.57 106.50 225.83 170.00 259.58 1.31976 217.64 1920. January 46.25 142.57 100.00 212.04 165.00 251.95 1.32875 219.12 February 49.00 151.05 103.00 218.41 165.00 251.95 1.31273 216.48 March 50.00 154.13 100.00 212.04 155.00 236.68 1.25551 207.04 April 47.25 145.65 97.50 206.74 148.00 225.99 1.20576 198.84 May 45.75 141.03 94.00 199.32 130.00 198.50 1.03495 170.67 June 43.50 134.09 84.00 178.12 116.00 177.13 a.92789 153.01 July 38.50 118.68 78.50 166.45 109.50 167.20 a. 92935 153.25 August 37.25 114.83 81.50 172.82 114.00 174.07 159.87 September 34.75 107.12 78.75 166.98 107.50 164.15 a.94510 155.85 October 32.50 100.19 75.00 159.03 105.00 160.33 a. 84187 138.83 a Price of domestic silver 99.535 cents per fine ounce. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1162 FEDERAL RESERVE BULLETIN". NOVEMBER, 1920. Exchange rates on neutral countries were in the United States, which normally consumes all above par at the beginning of the period by far the larger portion of Cuba's production, under review, and all, except the rate on Val- resulted in a large increase in sugar acreage and paraiso began to decline at about the time production in Cuba. From about 2\ million when the artificial link between the dollar and tons before the war Cuba's production increased the pound sterling was removed in the spring to nearly 4 million tons for the season 1918-19, of 1919; in October of this year all of the cur- and nearly 3| millions for the most recent rencies in this group were quoted at consider- season. The price of sugar, while the war lasted, able discounts. This is true of the European was kept within reasonable limits by the action as well as of the South American currencies. of the United, States Government through the Argentine pesos, which were quoted at about Food Administration and later through the par a year ago, declined in value to about 86 Sugar Equalization Board, which in 1917-18 per cent of par in October, while Chilean pesos purchased the entire Cuban crop at 5i cents declined from 20.6 cents a year ago to 16 cents per pound, allotting about one-third of the in October last. amount to Great Britain. In 1918-19 the Exchange rates on silver standard countries United States did not accept the offer of the moved in substantial accord with changes in sugar producers to sell the year's crop at 6J the price of silver, which in January of this cents, and consequently the price began to year reached $1.32875 per ounce, or about 219 respond directly to world conditions. Europe per cent of its average price in 1913. It may be continued to be short of sugar and was clamornoted that the widest fluctuations occur in the ing for the surplus product of the American value of the Shanghai tael, which is a silver tropics. Prohibition in the United States inunit whose market value is not influenced by creased the consumption of soft drinks and governmental action; in the case of the Hong- candy, both of which require large quantities kong dollar, and, to a much larger extent, of of sugar, and these conditions resulted in a runthe Indian rupee regulations and actions by the away market for sugar in Cuba. General pros- British Government have narrowed the range perity, accompanied by much extravagance, of fluctuations in value. and speculation in real estate were the chief features in Cuba during the past year. • In the middle of the past summer the tide turned and the price of sugar, which had been lifted not ECONOMIC AND FINANCIAL CONDITIONS only by market conditions but also by specula- IN CUBA. tors in Cuba and abroad, began to decline, the Recent developments in Cuba, particularly collapse of the speculative boom in this country the banking crisis, resulting in the proclama- and Cuba and the decline of the purchasing tion of a fifty-day moratorium, make a brief power of European countries being among the study of Cuba's economic resources, her place important causes. in the world's sugar market, and the effect of The wholesale price of raw sugar in New the World War on Cuba's commerce, industry, York by months is shown below for the period and finance appropriate at the present time. January, 1914, to October, 1920: Sugar is the basis of Cuba's prosperity. The soil of the island is so fertile that sugar cane Average monthly price of raw sugar (96° centrifugal), spot or needs to be planted only once in every 7 to 12 prompt, duty paid, in cargo lots at New York. years, and the land needs cultivation only once [Cents per pound.] in a decade. Furthermore, the cane also suplies the fodder for the oxen which do the field Months. 1914 1915 1916 1917 1918 1919 1920 work, and after the sugar has been pressed out of the cane the dry stalks supply a part of the January 3.32 4.05 4.65 5.24 6.01 7.28 12.99 fuel for the operation of sugar mills. These February 3.44 4.68 4.91 5.17 6.01 7.28 11.38 March 2.98 4.82 5.64 5.48 6.01 7.28 11.85 conditions place Cuba, with its three millions April 2.98 4.80 6.15 6.21 6.01 7.28 17.65 May 3.26 4.84 6.43 6.08 6.01 7.28 20.93 of population, in a position to supply a large June 3.34 4.91 6.32 6.04 6.02 7.28 19.66 part of the world's sugar requirements. July 3.28 4.85 6.30 6.62 6.06 7.28 17.56 August 5.70 4.75 5.58 7.27 6.06 7.28 13.36 As a consequence of Cuba's concentration on September 5.88 4.27 5.55 6.96 6.97 7.28 10.67 October 4.46 4.11 6.26 6.90 7.28 7.28 8.33 this one crop, with tobacco as a secondary but November 3.91 4.75 6.21 6.90 7.28 7.28 much less important resource, economic and December 3.96 4.92 5.31 6.34 7.28 10.29 financial conditions on the island are extremely responsive to the price of sugar. During the Falling sugar prices resulted in a heavy shiinkwar a falling off in the beet-sugar production in age of the value of sugar lands, bank loans Europe, where large sugar-producing areas based on these lands, or on the sugar itself, bewere in the zone of military operations, together came somewhat doubtful, the credit situation with the constantly growing demand for sugar became strained and was aggravated by the Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

NOVEMBER, 1920. FEDERAL UESERVE 1163 congestion in Havana harbor where vast quan- and affording a market for the larger part of tities of goods were tied up thus preventing the Cuba's output. Note the great decline in liquidation of commercial bills. These develop- sugar production in Europe, which, however, is ments brought about a financial crisis which expected to recover to 3,870,000 tons in the year caused the President to declare on October 10 1920-21. a moratorium for 50 days. According to the The table below shows the value of merchanterms of this moratorium, the full text of dise exports from Cuba and the value of suga r which is printed on page 1165, notes, bills of and tobacco exports for the years 1914 to 1918 : exchange, orders and other documents of credit which are due or may become due up to De- Cuba's exports of merchandise, 1914-1918. cember 1 will not be collectible until that date. [In thousands of dollars.] Mortgage credits or deeds of trust are also extended to that date. Only 10 per cent on p ch o e s c it k s i n b g e l a o c w c o $ u 2 n , t 0 s 0 0 a n c d a 1 n 2 b p e e r d r c a e w nt n o b n y f ix d e e d p o d s e i- - Year. Total. a p n r S o c d u a d g o n u a t e c h r t e s r .p T to r o o b a b d n a a u c d c c c c o t o s. m A d e ll r i c s o h e th . an er tors. However, sums necessary to pay customs duties or taxes may be drawn against the 1914 174,041 133,363 27,487 13,191 creditor's current account. This action gives 1915 236,229 197,521 24,414 14,294 the banks time to rearrange their affairs, and it 1916. 321,790 274,705 25,888 21,197 1917 356,429 305,341 29,397 21,691 is expected that some of the inflated values will 1918 407,283 347,881 36,838 2?,564 now be deflated and that Cuba will settle down to the sober business of producing sugar, which Sugar, together with other cane products, under present world conditions can be mar- such as molasses and candy, constitutes about keted at a price sufficient to make sugar grow- 85 per cent of Cuba's total merchandise exing profitable. ports, and tobacco, with its products, about 8 or 9 per cent more, so that all but a small frac- SUGAR PRODUCTION AND EXPORTS. tion of the foreign trade of the island consists of these two products. It is not surprising, The following table shows the world produc- therefore, that variations in sugar prices are tion of sugar and Cuba's share in it for the past immediately reflected in Cuba's economic confive years and indicates the importance of the dition. Cuban soil and climate are well adaptisland in the sugar markets of the world. ed to the production of many other important crops, such as sisal and fruits, and also to the Sugar production of the world, exclusive of India. raising of cattle, but up to date the other in- [In thousands of long tons.] dustries have been subordinated to the two principal staples of the island. Whether the present financial crisis will tend to induce the America. Total All Cubans to diversify their production in order world other Year. (exclu- Other Europe. coun- not to be too much dependent on the market s In iv d e i a o ) f . Cuba. U St n a i t t e e s d , i c tr o i u e n s. - tries. for one or two products remains to be seen. A table is also presented showing Cuba's exports to and imports from the different foreign 1913-14. 16,458 2,598 2,025 981 8,253 2,601 1914-15. 16,072 2,593 1,995 1,199 7,591 2,694 countries. It will be noted that the United 1915-16. 13,909 3,008 2,197 894 5,084 2,726 1916-17. 14,260 3,024 2,239 929 5,010 3,058 States, which enjoys preferential customs 1917-18. 14,022 3,446 2,100 857 4,293 3,326 treatment of 20 to 40 per cent on all mer- 1918-19. 13,974 3,972 1,974 1,238 3,643 3,147 1919-20. 3,729 2,678 chandise imported from this country into Cuba and grants reciprocal concessions of i Including production of United States, Porto Rico, and Hawaiian Islands, also exports from Philippine Islands. 20 per cent on the duties on sugar, tobacco, and other imports from Cuba, receives about The importance of Cuban sugar in interna- three-fourths of Cuba's exports and supplies tional commerce is even greater than produc- about the same proportion of her imports. tion figures alone would indicate, because Cuba Exports to Great Britain show a large increase, with her small population can export nearly all as Cuban sugar took the place of sugar previthe sugar she produces, while much of the sugar ously imported from Germany, Austria, and produced in other countries is retained for Russia. Cuba's total exports consistently domestic consumption. The United States exceed her imports, thus giving the island a consumes about one-fourth of the world's sugar favorable balance of merchandise trade. In and produces on the mainland and its outlying 1919 exports aggregated 573 millions, and possessions about one-half of its own require- imports 358 millions, leaving a balance in ments, the other half being supplied by Cuba favor of Cuba of about 215 millions. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1164 FEDEKAL RESERVE BULLETIN. NOVEMBER, 1920. Cuba's trade balance with principal foreign countries for the 24 millions, is held largely by the treasury and y&ars 1914-1918. in the banks, while the active circulation con- [In 1,000 pesos.] sists of paper money and silver and nickel coins. Countries. 1914 1915 1916 1917 1918 BANKS. United States: Cuba has no official or semiofficial banks, al- Imports 68,623 90,462 153,020 189,875 219,272 Exports 145,881 195,286 242,638 255,275 289,090 though the National Bank of Cuba, which has an Other American countries: associated institution in New York City under Imports 7,982 8,020 12,249 17,920 20,257 the name of the Bank of Cuba in New York, acts Exports 3,180 3,357 3,676 9,412 Germany: as Government depositary and fiscal agent. I E m x p p o o r r t t s s 5 2 , , 0 3 3 5 4 4 800 26 This bank was organized in 1901 with a capital Spain: of $l,000,000 increased to $3,000,000 in 1904 and Imports 9,939 10,817 14,409 15,642 10,393 > Exports 1,645 872 3,025 5,390 6,355 to $5,000,000 in 1905. In addition, the bank had France: Imports 4,632 4,897 5,931 6,289 7,044 in June of the current year a surplus and reserve Exports 2,398 1,135 12,971 11,617 5,657 fund of $9,000,000. 'The rapid growth of the United Kingdom: . Imports 12,379 15,288 19,231 15,377 9,155 bank's loans and discounts and of its deposits Exports 15,842 33,033 52,776 73,564 95,149 is notable, especially for the period between De- Other European countries: cember, 1919, and June of the present year. Imports 6,852 6,203 4,144 3,426 2,362 Exports 1,087 1,865 5,690 1,335 495 Thebigbanks in Cuba follow asystem of branch Other countries: Imports 2,761 4,397 6,952, 7,555 26,149 banking and have branches scattered through- Exports 1,654 681 1,014 858 1,125 out the island. The banks' chief functions con- Total: Imports 118,202 140,884 215,962 256,085 294,632 sist of financing sugar and tobacco production Exports 174,041 236,229 321,790 356,428 407,283 and exports, of handling foreign exchange, and of distributing currency throughout the island, MONETARY SYSTEM. as well as of extending credit to other commer- Before the American occupation, the mone- cial and industrial interests. Balance sheets of tary circulation of Cuba was composed largely some of the important banks for the past few of Spanish gold and of various silver coins; years are shown in the attached tables. Of there was no paper money. As Cuba's indus- the domestic banks the Banco Espaiiolis next in tries developed, the need for a more modern importance to the National Bank of Cuba. The currency became urgent, and on October 29, great increase in the volume of business of this 1914, a monetary law was enacted by which the bank is seen from the attached statement. At- Cuban gold peso, equal to the American dollar tention is also called to the fact that among the in weight and fineness, was made the standard, assets of that bank about $19,000,000 are in and all owners of the then existing currencies stocks and bonds, indicating that in addition to were required to turn them in at the National commercial banking this institution is a partici- Bank of Cuba to be shipped abroad. The total pant in many Cuban enterprises. The Banco amount so shipped during the years 1914 to Internacional, organized about three years ago, 1917 was about 64 million dollars. The portion has over a hundred branches, with a comparashipped to America was melted and recoined into tively small capital, and has been the hardest the new Cuban currency at the United States hit by the recent financial crisis, being obliged mint and about 31.2 millions of the new money to suspend payments. The banking houses of was sent to Cuba. The composition of the cur- H. Uppman & Co. and N. Gelats & Co. are the rency so shipped was as follows: Gold coins, most important private banks which have been 23.8 millions; silver coins, 6.7 millions; nickel operating in Cuba for many years and have close coins, 0.7 million. Recently Cuba has ordered connections with the sugar and tobacco interests. another 2\ millions in silver and nickel coins. In recent years foreign banks have opened In addition to this circulation of hard money branches in Cuba, the most important being the Cuba uses American paper currency, largely Royal Bank of Canada and theBank of Nova Sco- Federal Reserve notes, which are supplied to it tia among the Canadian banks, and the National by American banks. It was estimated that at City Bank, the Mercantile Bank of the Americas, the end of last year there were about 60 millions and the American Foreign Banking Corporation of American paper money in Cuba; during the among American institutions. The National current year up to the middle of June about 43 City Bank has about 25 branches in Cuba; the millions more were shipped, and shipments of Mercantile two branches, and the American about 50 millions were made during the most Foreign Banking Corporation one branch. recent weeks. There is no record of the amount These banks, although primarily engaged in of this currency returned to the United States, financing exports from and imports into Cuba, but it may be estimated that the total amount have also participated to a large extent in the in circulation in Cuba is approximately 150 mil- domestic affairs of the island. The increasing lion dollars. The gold, of which there is about need of credit and shortage of capital in Canada Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

NOVEMBER, 1920. R&SEftVE 1165 and the United States during the last year comparatively light, and municipal expendihave doubtless caused a more conservative tures are not considerable. credit policy on the part of these institutions and thus contributed to the financial stringency Cuban Government publications: in the island. During the recent expansion of Secretaria de Hacienda, Estadistica de Commercio Exterior. Boletin Oficial de la Secretaria de Estado. sugar production American capital has been Industria Azucarera e sus Derivadas. invested in Cuba, largely in sugar machinery, to Other publications: Annual Reports of the Comptroller of the Currency. an amount estimated at about 350 millions, the An Official Statement of the Sugar Situation, Commercial West, American banks being the intermediaries in Minneapolis, November, 1915. Bernhardt, Joshua, Government Control of Sugar During the War, these transactions. In view of the fact that the Quarterly Journal of Economics, August. 1919. Cuba, Financial and Economic Conditions and Public Debt, a report American money is legal tender in Cuba and is prepared for the Central Executive Council of the International supplied to Cuba through the Federal Reserve High Commission, December, 1919. Cuba, Review of Commercial, Industrial, and Economic Conditions Banks, American banks are intimately con- in 1919, published by National City Bank. Cuba Will Quickly Recover from its Economic Embarrassment, nected with the financial structure of the island the Americas, published by the National City Bank, October, 1920. and American capital is largely represented in Diario de la Marina, Daily, Habana. La Lucha, Daily, Habana. the island's industries. Morales, William, Money and Banking in Cuba, the Pan American Magazine, January, 1919. The very close connection between the Morales, William, Money and Banking in Cuba, the Cuba Review, December, 1918. United States and Cuba in economic and finan- Report on Business Conditions, June, 1920, N. Y. Federal Reserve cial affairs is apparent. During the recent Agent's Report. Showalter, William Joseph, Cuba—the Sugar Mill of the Antilles, the crisis Cuba turned to the United States for National Geographic Magazine, July, 1920. Weekly Market Letters of the Czarnikow-Rionda Co. assistance. Conferences were held in New York and Washington, and plans for arranging FULL TEXT OF CUBAN MORATORIUM DECREE. a loan of 50 to 100 millions by a group of The following is the official decree as printed in the American banks to the Cuban Government or Official Gazette: Considering that important banking institutions of this for extending credits directly to Cuban city, represented by their directors and managers, have mill owners were discussed. The Cuban called on this presidency to explain the extraordianary banks are expected to form a clearing house and critical situation in which they find themselves with association for the purpose of handling the deposits on current accounts amounting to over $400,000,- 000 and with an actual capital represented by cash, bonds, proposed American loan. Cuban producers stocks, valuables, sugar, properties and credits amounting are organized into a general committee which to $1,000,000,000, although the present price of sugar is seeks to stabilize the sugar market. A plan is lower, all of which demonstrates the solvency of these institutions and their financial capacity to guarantee deon foot in Cuba for the organization of a bank positors; and, of issue and rediscount along the lines of the "Considering that an unexpected situation of alarm Federal Reserve Banks, but so far no legislative from the exaggerated rumors about the banking situation action in that direction has been taken. has arisen in the past few days, said alarm being due largely, as stated, to the large amount of business transacted and adverse action regarding credit by foreign bankers and the drop in the price of sugar; and, PUBLIC FINANCE. 1' Considering that it is a well-known fact that depositors of current accounts and creditors have rushed the demand Revenues of the Cuban Government in 1912- for their funds, urged by the exaggerated rumors, in the belief that thejr interests were endangered, and a situation 13 amounted to about 37.9 million dollars and was created that could not be withstood by any banking rose to 64.5 million dollars in 1918-19, the institution, and that is enough reason in any country to expenditures each year being below the reve- force a temporary suspension of banking operations; and nues. A large part of the revenue, about 37 "Considering that, although the price of sugar has dropped, it is a fact that nine out of ten portions of the millions, is derived from customs duties, about sugar crop sold at high prices, and the movement of ex- 15 millions from taxes on land, other sources of ports of all other products of the country show an era of revenue being the national lottery, the special considerable prosperity, present difficulties being transiloan tax, telegraphs and post offices, consular tory and merely a question of circulation and without any reflection on the vitality of the country, therefore the apdues and harbor dues. peal from banking institutions has been taken into Cuba has a foreign debt amounting to about consideration; and 51 million dollars floated through the banking "Considering that such an exceptional measure in connection with the hand ling of public moneys is only justified houses of Speyer and Morgan in the United whenever social interests of superior order, such as when States and held largely in this country. In the organization and operation of public and private addition, it has a domestic debt of about 39 credit transactions are endangered, since a panic of this million dollars.1 Cuba's revenues are amply nature would lead to a great business crisis, and as such would undoubtedly be the case should the Government adequate to take care of her interest and fail to adopt a rapid and energetic disposition that will amortization payments, and her international serve to safeguard all interests; and and domestic credit is in good condition. "Considering that it is generally recognized that great Cuban municipalities impose taxes on trade and prosperity favors our agriculture, industry, and commerce, to the extent that Cuba ranks first in the list of countries industry, on purchases, on commercial estabexporting to the United States and third among those imlishments, and on arts and crafts. Taxes are porting from the same place, therefore the measures sug- » Mensaje del Presidente, Nov. 3, 1919, pp. 30-35. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1166 FEDERAL RESERVE BULLETIN. NOVEMBER, 1020. gested and accepted by this Government will not endanger of government funds, as per contract, or the current acany legitimate interest. count of the Lottery Department. " Having heard the statements at the cabinet meeting "6. A commission composed of the secretaries of the held in extraordinary session, I resolve interior, finance, agriculture, commerce and labor will "1. That letters of exchange, drafts, notes, obligations, have charge of inspection and supervision of banks for the orders and other credit documents due or that may be due proper execution and fulfillment of this decree and will, up to the 1st of December, next, will not be paid until to that effect, practice suitable measures, undertaking that date. examination of values of deposits, inventory of safes and "2. Mortgage credits, transferable or simply deed bind- realization of the current accounts. ing, due and that may be due within the term referred to "7. Creditors of current accounts may draw against in above paragraph will not be paid and are extended their accounts the necessary sums for the payment of until the 1st of next December. customs duties, taxes, fiscal revenues, and other taxations "3. The auctions specified in court or administrative from the Province or muncipality, in the names of the proceedings are hereby suspended and may be fixed after respective collectors of customs, fiscal zones, and other the 1st of December, next, until after which date neither authorities concerned thereby. auctions or compulsory sale of any kind can be made. "Said checks will be cashed by public officials within "4. Within the term stated, from the date this decree is 24 hours of their issuance. issued, depositors with banks or bankers in the republic "8. The Government reserves the right to waive this can draw only 10 per cent on current accounts and 12 per concession should public convenience so demand. cent on savings accounts below $2,000, unless the com- " Signed in the President's Palace, this 10th day of mission appointed as per paragraph 6 of this decree will October, 1920. grant extension of that percentage in accordance with the M. G. MENOCAL, stated accounts. "President. "5. This moratorium does not affect the obligations of "E. SANCHEZ AGRAMONTE, the National Bank of Cuba as fiscal agent and depositary "Secretary of Agriculture, Commerce and Labor" Assets and liabilities of Banco Nacional de Cuba on June 30 and Dec. 31, 1914-1920. [In 1,000 pesos.] 1914 1915 1916 1917 1918 1919 1920 June. D b ec e e r. m- June. D b ec e e r m . - June. D b ec e e r m . - June. D b ec e e r. m- June, D b ec e e r. m- June. D b ec e e r m . - June. ASSETS. Cash, including checks on banks and transit items 15,615 8,292 19,027 16,926 35,668 20,280 37,891 24,410 35,409 29,969 55,535 40,857 90,976 Stocks and bonds 4,079 4,056 4,056 3,762 3,839 4,382 4,313 4,543 4,601 3,712 4,005 4,085 4,082 Discounts and loans 16,652 18,492 20,520 22,724 27,510 37,468 37,256 49,325 54,973 59,833 62,599 77,215 113,902 Real estate 1,526 1,447 1,487 1,507 1,488 1,497 1,444 1,556 1,563 1,706 1,806 1,935 2,094 Various accounts 167 277 135 170 11 287 290 753 352 742 392 Guaranties, acceptances, and letters of credit 145 879 4,174 4,654 5,176 5,023 6,960 Other assets 210 2 1 10 70 Total 38,229 32,653 45,225 45,089 68,540 63,638 81,338 81,005 101,474 100,577 129,473 129,927 218,406 LIABILITIES. Capital paid in 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 Surplus and reserves 1,300 1,500 1,500 2,000 2,300 2,800 3,000 4,000 5,000 6,000 7,000 8,000 9,000 Profits, undivided 416 360 624 548 648 551 854 716 730 931 1,077 1,077 1,447 Deposits 29,314 23,714 37,539 36,145 60,039 54,843 71,574 67,750 80,486 76,748 107,019 106,533 194,507 Credits in current account 2,199 2,079 562 320 555 404 715 2,599 6,014 7,154 4,110 4,194 1,382 Guaranties, acceptances, and letters of credit 145 4,174 4,664 5,176 5,023 6,960 Other liabilities 1,076 40 50 70 91 100 110 Total.. 38,229 32,653 45,225 45,089 68,540 63,638 81,338 81,005 101,474 100,577 129,473 129,927 218,406 Assets and liabilities of Banco Espanol de la Isla de Cuba on June 30 and Dec. 31, 1914-1920. [In 1,000 pesos.] 1914 1915 1916 1918 1919 1920 June. D b e e ce r. m- June. D b e e ce r. m June. D b ec e e r. m- June. D b ec e e r. m- June. D b ec e e r. m- June. June. Cash, including transit items and checks on other banks 12,153 9,636 9,779 9,767 14,949 12,322 17,481 16,683 22,304 19,211 28,191 51,479 Stocks and bonds 4,255 4,356 4,472 6,727 7,707 7,504 8,078 8,921 9,684 11,799 14,147 15,833 18,942 Loans and discounts 15,249 16,134 14,510 16,617 18,671 24,514 26,472 36,717 40,133 42,308 39,488 48,577 53,393 Loan to Habana 123 123 118 122 111 111 112 112 111 113 111 110 110 Various accounts 1,008 879 979 700 737 683 601 752 577 669 652 670 576 Real estate 475 476 476 462 421 438 425 437 425 545 861 895 968 Furnishings 192 193 192 230 218 243 261 265 301 318 340 375 436 Other assets 10 1 2 1 4 Total.. 33,455 31,797 30,526 34,625 42,814 45,824 53,430 73,537 74,964 85,405 I 94,655 125,904 LIABILITIES. Capital paid in 7,273 7,273 7,273 7,273 7,273 7,273 7,273 7,273 7,273 7,273 7,273 7,273 7,273 Surplus and reserves 450 500 500 600 545 654 645 700 1,150 1,900 2,700 4,000 5,500 Profits, undivided 323 240 309 329 364 330 365 355 371 354 302 325 513 Deposits 22,085 20,135 21,010 24,320 34,580 36,382 44,562 53,519 62,374 60,915 73,961 78,115 112,127 Due to banks and bankers. 2,597 2,922 707 1,375 51 1,185 583 2,041 4,522 1,169 4,942 487 Other liabilities 727 727 727 728 1 2 4 Total. 33,455 31,797 30,526 64,625 42,814 45,824 53,430 63,888 j 73,537 74,964 85,405 94,655 125,904 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

NOVEMBER, 1920. FEDEEAL RESERVE* BULLETIN. 1167 Condition of branches of National City Bank in Cuba, June SO, 1916-1920. [ In thousands of dollars.] Total for all branches. Havana branch. 1916 (2 1917 (2 1918 (2 1919 (12 1920 (22 branches).branches).branches) branches).branches). 1916 1917 1918 1919 1920 ASSETS. Loans and discounts, including overdrafts 1,883 5,272 7,497 26,213 56,060 1,771 4,534 7,086 15,711 41,271 Bonds 19 18 6 7 7 19 18 6 7 7 Due from home office 1,714 1,153 1 714 1 133 Due from branches 6,512 7,614 6 512 3 815 Due from other banks.. 319 373 400 464 1,521 3i7 373 112 344 1,315 Checks and cash items 118 219 452 980 1,585 118 183 419 798 1 434 Cash... 470 824 763 2,377 3,924 440 567 603 1,092 2,131 Letters of credit and acceptances .. 186 11 40 161 846 186 40 155 732 Other assets 1 95 14 377 2,009 1 94 12 288 1,719 Total 4,710 7,965 9,112 37,081 73,566 4,566 6,922 8,278 24,907 52,424 LIABILITIES. Capital 1,000 1,000 1,000 1,001 1,000 1,000 1,000 1,000 1,000 1,000 Profit 39 80 168 295 . 642 39 69 165 245 475 Due to branches 8 176 5,688 4 891 176 Due to home office. 850 14 338 33 714 850 14 336 33 714 Due to other banks 195 1,296 135 2,629 1,974 195 1,296 135 2,345 l',500 Individual deposits 3,342 5,543 6,670 12,348 29,351 3,200 4,536 5,845 6,687 13,861 Tiills Davablp 789 70Q Letters of credit and acceptances. 121 27 66 263 1,190 120 It 62 253 1,070 Other liabilities 13 11 47 51 15 12 11 45 41 . 15 Total. 4,710 7,965 9,112 37,081 73,566 4,566 6,922 8,278 24,907 52,424 Assets and liabilities of Banco International on June SO American foreign banking corporation—Havana branch. 1919 and 1920, and Dec. SI, 1918 and 1919. [Authorized Feb. 25, 1918; opened for business Jan. 2, 1919.] [In 1,000 pesos.] j June 30,1919. Dec. 30,1919. June 30,1920. 1918 1919 1920 D b ec e e r. m- June. D b ec e e r. m- June. ASSETS. Loans and discounts: Secured $1,332,320.59 $1,870,926.48 $2,754,220.37 Unsecured 282,762.00 165,178.00 228,977.00 ASSETS. Cash: Gold and silver 762.23 405.77 890.56 C R S L D t o a e e b o s a a b c a h l n i k n , t s e s s k s a s a i i t n n n a n a t d c d c n e l u d d u b r i d t o s r r i e c n n a n o d g n t u s s n a it t c c s h c i t o e e c u m k n s s t .. o . n other 4 2 , , 6 8 3 4 1 2 5 5 1 0 1 2 0 4 6 8 6 , , 5 8 5 5 8 4 5 9 5 3 2 7 1 1 7 4 , , , 9 1 5 8 7 5 7 8 4 3 4 3 1 6 1 2 1 2 1 9 , , , 3 1 1 6 0 2 8 6 2 1 6 6 6 3 C D O u f u o f s i e f c t R L o c e f r o m r e o e c f s m e i d a e x r l i r s t t v u c b l e u r a i e a b r n r s b a k e i l s n a l i n c ( t y y l c o e f c s o a r ( l f ) l o e r t e t i e g r n s ) 3 6 6 1 6 2 5 5 5 1 , , , , , 0 6 6 2 9 0 5 4 6 0 8 0 9 2 5 . . . . . 4 7 3 0 3 9 7 0 8 7 9 1 2 2 9 5 4 2 5 3 , , , , , 0 3 5 5 3 0 4 1 9 0 9 2 8 8 9 . . . . . 3 0 8 1 9 3 0 8 0 3 1 1 , , 5 6 1 0 1 5 2 4 7 2 , , , , 7 5 2 4 8 8 2 3 4 4 1 3 . . . . 8 7 7 9 3 1 7 2 Due from stockholders 4,000 2,281 A O c th c e e r p t a a s n s c e e ts s and guaranties 3 3 8 8 9 7 6 1 5 5 1,616 3,5 3 3 5 6 7 Total 2,666,330.83 3,187,288.49 6,171,113.16 Total 12,770 19,638 26,901 47,195 LIABILITIES. Deposits (all demand) 1,607,191.67 942,342.08 1,351,133.74 LIABILITIES. Due to banks 108,192.31 137,026.23 2,445,981.67 Capital paid in 5 000 5.000 5,000 5,000 Due to head office 777,146.51 1,959,887.47 2,008,485.43 Deposits 6 624 12 fi.<V7 18,941 36,716 Drafts payable 8,825.29 18,077.62 Credits in current account 437 931 839 1,311 Interest on acceptance reserve 83,331.63 51,246. 79 Accepted bills, guaranties, and Undivided profits 16,034.93 61,907.21 355,900.83 letters of credit . 389 715 1,613 3,536 Letters of credit 65,608.49 Profits and loss 215 278 377 435 Suspense 16,861.09 Other liabilities 105 57 131 197 Interest reserved 9,611.49 Total 12,770 19,638 26,901 47,195 Total. 2,666,330.83 3,187,288.49 6,171,113.16 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1168 FEDERAL RESERVE BULLETIX. NOVEMBER, 1920. Banco Mercantil Americano de Cuba—Havana branch. conditions, and general attractiveness of Latin- American investment would take place.1 [Date of incorporation, Oct. 22, 1918.] The investment trust company is an organization issuing its own long-term debentures June 30,1919. Dec. 31,1919. against dependable securities of governments, public utilities, mining, agricultural, shipping, ASSETS. banking, commercial, and industrial establish- Loans and discounts: ments, domestic or foreign. The fundamental Secured $5,443,097.20 $16,679,057.43 Unsecured 873,365.52 977,352.77 principle of the investment trust is the distri- Trade bills discounted 641,085.69 bution of risk by the investment of funds in the Cash on hand 62,794.69 870,220.34 Due from banks (local) 823,263.23 464,971.76 securities and bonds of a great number of enter- Furniture and fixtures 22,092.59 2.00 Installation expenses 33,701.36 prises, investments in any one security usually Interest paid in advance 97,302.44 being limited to a fraction of the capital, say, Accrued interest received 65,467.54 United States Liberty bonds 100,000.00 100,000.00 10 per cent. Such distribution of risk seems Sundry accounts received 3,004.14 27,477.78 Due from foreign branches 96,827. 68 to be one of the most practical forms yet de- Customers'liability for letters of credit 544,670.35 vised of affording the investor a secure channel Total. 8,067,871.96 19,857,882.55 for profitable investment. The security offered is usually a 20 per cent margin, such as banks LIABILITIES. Capital 2,000,000.00 2,000,000.00 require of gilt-edge paper. Surplus 500,000.00 . 500,000.00 Undivided profits 112. 56 106,671.35 The investment trust enjoys many advan- Due to Mercantile Bank of America 3,860,977.90 12,441,187. 49 tages not usually available to the individual Other foreign banks and bankers 402,941.35 744,960. 28 Deposits (in local currency) 1,185,798.38 2,346,992. 79 investor. A company formed for the purpose Accrued interest received 118,041.77 271,910. 51 Acceptances outstanding 12,740. 67 of investment is in a position to investigate the Due to other local banks 846,318.33 financial condition of undertakings in which Letters of credit issued 544,670.35 Sundry accounts payable 6,430.78 funds may profitably be invested. The officers Reserved for taxes 36,000.00 of such a company develop the habit of forming Total. 8,067,871.96 19,857,882.55 dependable judgments of economic conditions in foreign countries and the conditions of the investment market. Moreover, a company The Investment Trust as a Channel for Invest enjoys the advantage of having available a ment Abroad. large amount of funds for investment purposes, while the individual investor usually deals only By means of the amendment to section 25 of with small amounts. the Federal Reserve Act (sec. 25A, Public Act 106, 66th Cong., approved Dec. 24, 1919), there It goes without saying that no investment is provided the machinery for the profitable and trust company can be successful except under secure investment abroad of the surplus capital the most careful management and with the of the United States. This amendment, famil- assurance of expert reports on all its holdings. iarly known as the Edge Act, vests in the Fed- On the other hand, the margin of return can not eral Reserve Board the administration of its be counted upon as great enough to support provisions. too large an organization; so that the most successful type of investment trust will get European countries have long been familiar along with relatively small technical and clerwith the process of issuing domestic securities ical staff, all, however, necessarily being of against a well-selected assortment of foreign unusual caliber as to judgment and accuracy securities as one of the safest forms of profit- ; and having a background of wide knowledge able investment in foreign public utilities, of international financial conditions. mineral, and agricultural enterprises, and The field of investment depends upon the shipping, commercial, and industrial estabpurpose for which the investment trust comlishments. A survey of the methods and expany is formed. Some companies restrict perience of the European countries in which their business to foreign countries, while others this form of investment has been most comare practically unlimited as to field; some commonly and successfully used will not, therefore, panies restrict their business to particular be lacking in interest. It is based upon a colkinds of enterprises in which they invest their lection of material assembled for the use of the funds, for instance, exclusively to railways or Secretary General of the United States Section electrical enterprises or mining enterprises of the Inter-American High Commission in the The same considerations are a guide in each Treasury Department. The facts were gathered in connection with the Second Pan American 1 The statutes, by-laws, and annual reports of the various European Financial Conference, in which it was expected investment trusts have been turned over to the Board and are now on deposit in the office of its counsel. The study was prepared by T. H. that considerable discussion of the volume, Thiesing, formerly legal research assistant of the Commission and now practicing law in New York. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

NOVEMBER. 1920. FEDERAL RESERVE BULLETIN". 1169 case, namely, that the investments must be The legal form which was adopted by such safe and that ample returns from investments companies was the institution of the old must be assured. English trust. A few persons were appointed The institution of an investment trust has as trustees, to whom a certain amount of capifound extended application in England, Scot- tal was entrusted for the purpose of acquiring land, and on the Continent, varying to some securities. Individual members received shares degree according to the requirements of the in proportion to their investment, and a fixed local investors. The investment trust com- percentage of interest, about 5 or 6 per cent panies in England and Scotland are largely per annum, was paid on such shares. Any purely investment trusts—that is, the company surplus profit, effected by the sale of obligamay not invest more than a certain percentage tions, was used for the amortization of the of its capital in any one security—while the stock certificates. It was provided that after continental investment trust companies are of a period of 15 or 20 years such trust would be a more speculative character and are also liquidated. The trustees were, as a rule, holding and financial companies—that is, they restricted to buying only particular kinds of. acquire large quantities of stock in a few corpo- securities. Furthermore, not more than onerations so as to exercise control over their tenth of the capital could be invested in any affairs, create subsidiaries, and finance new one type of security. There was also a limit to enterprises. the capitalization of the trust. If the authorized capital were oversubscribed, a second trust It is the purpose of the following survey to under the same name, management, and show briefly the development of the idea of the by-laws would frequently be created, separate, investment trust in Europe, to point out the however, from the first trust. Thus, for differences in the character of investment example, we find that there exists of the trusts in different countries, and also to indi- Foreign Colonial Trust a first, second, third, cate the success attained by them in recent and fourth trust, and of the Scottish American years. Trust a first, second, and third. GREAT BRITAIN. From the very start, it was realized that since the directors of a trust and the trustees had the The principle of substitution of domestic for power to acquire and to sell securities, there foreign securities was first applied in Great presented itself a great opportunity for specu- Britain. Institutions contemplating the aclation, with the restriction merely to keep quisition of a variety of securities and the diswithin the prescribed limit of investing not tributions of risks were created in Scotland more than the fixed percentage of the capital about 1860. They were formed because at in any one type of security. that time British Government bonds paid only Gradually the class of investment securities a little over 3 per cent interest. By investing was enlarged. While the first trusts which in obligations of foreign Governments and parwere created possessed only about 18 different ticularly in various obligations of railroads, an Government obligations, trusts subsequently interest of 5 per cent or 6 per cent or even formed acquired the obligations of cable, shipa higher rate could be secured, involving, of ping, mining, and railroad companies. The course, greater risk. While a capitalist was range of investments is perhaps fairly shown able to reduce this risk by appropriate distriby the following list of foreign and colonial bution of his investments, small investors were companies and corporations, whose securities not in a position to make such distribution of are at present among the holdings of English their investments. The latter began, thereand Scottish investment trusts: fore, to form associations and to combine their capital. Abitibi Power & Paper Co.; Advance Rumely Co.; Alabama, New Orleans, Texas & Pacific Junction Railway The object of practically every one of thes< Co.; Alaska Steamship Co.; American Association (Inc.); new associations at the time,of formation was American Cities Co.; American Ice Co.; American Writing to provide trustworthy means whereby British Paper Co.; Anglo-Argentine Tramways Co.; Argentine investors could lend their surplus funds for Tramways '& Power Co.; Arizona Copper Co.; Assets Realization Co.; Associated Drygoods Corporation; Aupurposes of investment and at the same time gusta-Aiken Railway & Electric Corporation; Australian feel assured both that the principal would be Mercantile Land & Finance Co.; Bahia Tramway Light & safe and that an attractive rate of interest Power Co.; Barcelona Traction, Light & Power Co.; would be maintained. These companies thus Bitter Root Valley Irrigation Co.; Bolivar Railway Co.; British Canadian Lumber Corporation; Buenos Aires invested the funds intrusted to them, collected Central Railway; Buenos Aires Lacrose Tramways Co.; the interest and premiums paid thereon, and Buenos Aires Western Railway; Buffalo & Lake Erie after making the necessary deductions for re- Traction Co.; Cambria Fuel Co.; Canada Cement Co.: Cape Town & District Gas, Light & Coke Co.; Central Argenserve and sinking funds, distributed the baltine Railway Co.; Chattanooga Gas & Coal Products Co.; ances as dividends. Chicago, Duluth & Georgian Bay Transit Co.; Chicago Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1170 FEDERAL RESERVE BULLETIN. NOVEMBER. 1920. Elevated Railways; Chicago Great Western Railway Co.; assumed that a far greater number existed, Chicago, Rock Island & Pacific Railway Co.; City of and that not all of them were listed at the Chicago (bonds); Coast & Lakes Contracting Corporation; exchange. At that time the character of Colorado Power Co.; Consolidated G'as Co. of New York; Consumers Co.; Cordoba Central Railway Co.; Cordoba investment trusts was somewhat changed. Light, Power & Traction Co.; Corn Products Refining Co.; They acquired more and more a speculative Credit Foncier of Mauritius; Cuba Co.; Cuba Submarine character. The directors could easily find the Telegraph Co.; Denver United Breweries; Dominion Iron assent of the stockholders to change the securi- & Steel Co.; Durham Coal & Iron Co.; Eastern Pennsylvania Railway Co.; Emerald Rubber & Cocoanut Co.; ties and to realize a great profit with a rising Erie Railway Co.; Fayette County Coal Co.; Federal Light market. & Traction Co.; Gage Park Realty Trust of Chicago; The general characteristics of investment Georgia Coast & Piedmont Railway Co.; Great Northern Railway Co.; General Southern of Spain Railway Co.; trust companies do not essentially differ either Gulf States Steel Co.; Guantanamo Sugar Co.; Guayaquil in respect to constitution or methods & Quito Railway Co.; Havana Cigar & Tobacco Factories; The scope of business carried on by these H. B. Claflin Co.; Holly Manufacturing Co.; Houston Oil companies may best be illustrated by a brief Co. of Texas; Hudson & Manhattan Railway Co.; Illinois Car & Equipment Co.; Indianapolis Breweries; Inter- outline of the purposes of a typical company, borough Metropolitan Co.; International Railways of the British Investment Trust (Ltd.), of Edin- Central America; International Traction Co. of Buffalo; burgh. This company was organized in 1889 Interoceanic Railway of Mexico; Kansas City, Memphis & under the Companies Acts of 1862 and 1886, Birmingham Railway; Kentucky Union Co.; Kesner Realty Trust; Lake Superior Paper Co.; Madison & Wabash and has been successful from the start. Realty Trust; Majuli Tea Co.; Manaos Improvements Co.; Manila Railway Co.; Mason City & Fort Dodge Railway; I. Objects.—In the memorandum of association are set Mexican Central Railway; Mexican Electric Light Co.; forth the following objects: Mexican Light & Power Co.; Mexico North-Western Rail- (1) To raise money by share capital, on such terms and way Co.; Mexican Tramways Co.; Middle West Utilities conditions as may be thought desirable, and to invest the Co.; Milwaukee & Chicago Breweries Co.; Minneapolis, St. amount thereof in or upon, or otherwise acquire and hold, Paul & Sault Ste. Marie Railway; Minnesota & Ontario any of the securities or investments following, yidelicit, Power Co.; Missouri, Kansas & I'exas Railway Co.; Mis- the shares and stocks, whether preference, ordinary or souri Pacific Railway Co.; Montevideo Gas Co.; National deferred, and whether fully paid or not, bonds, obligations, Bank of Australia; National Railway Co. of Mexico; New debentures, debenture stock, scrip, and securities of any England Breweries Co.; New Mexico Railway & Coal Co.; company, corporation, or trust carrying on, or formed to New Mexico & Arizona Land Co.; New York Breweries Co.; carry on, business in the United Kingdom, or the colonies, New Zealand Loan & Mercantile Agency Co.; Nicaragua or in any foreign country or State, or in the stocks, bonds, Government (bonds); Norfolk Southern Railway Co.; debentures, scrip, or securities of any British, colonial, or Northern Pacific Railway Co.; North-Western Pennsyl- foreign Government, or authority—supreme, municipal, vania Railway Co.; Otis Steel Co. (Ohio); Pacific Coast Co.; local, or otherwise: Provided always, That no investment Pacific Oilfields Co.; Panhandle Lumber Co.; Para Elec- imposing unlimited liability on the company shall be made. tric Railways & Lighting Co.; Paraguay Central Railway (2) To borrow or raise money by the issue or sale of any Co.; Paris & Mount Pleasant Railway Co.; Peninsular bonds, mortgages, debentures, or debenture stock of the Power Co.; Pennsylvania Water & Power Co.; Philadel- company, whether perpetual or otherwise, or in any other phia & Western Railway Co.; Philippine Railway Co.; manner, and to invest any money so raised in any such Pittsburgh & Shawmut Railway Co.; Pittsburg, Shawmut securities or investments as aforesaid: Provided, That the & Northern Railway Co.; Placerville Gold Mining Co.; total amount outstanding at any one time on the com- Platte Land Co.; Portland Railway, Light & Power Co.; pany's debentures, or debenture stock, shall not in the Prhnitiva Gas Co. of Buenos Aires; Puerto Cabello & aggregate exceed a sum equal to the nominal amount of Valencia Railway; Railway Storage Battery Co.; Randolph- the share capital of the company, for the time being Macon Coal Co.; Rhodesia-Katanga Junction Railway & issued and subscribed. Mineral Co.; Rio de Janeiro City Improvements Co.; (3) To acquire any such securities or investments by Rubber Plantations Investment Trust; St. Louis-San original subscription, tender, participation in syndicates Francisco Railway Co.; St. Louis Southwestern Railway or like negotiations, or otherwise, and to make payments Co.; St. Louis Transit Co.; Savannah River Lumber Co.; thereon as called up or in advance of calls, or otherwise Seaboard Air Line Railway; South African & General to acquire such securities or investments in excess of the Investment Trust Co.; South Barracas (Buenos Ayres) monies for the time being proposed to be invested, and to Gas & Coke Co.; Southern Pacific Railway Co.; Southern sell or otherwise dispose of any excess thereof; and gen- Railway Development & General Mortgage Bonds; Supeerally to sell, exchange, or otherwise to dispose of, deal rior Rolling Stock Co.; Tampa & Jacksonville Railway Co.; with, or turn to account, any of the assets of the company, Tennessee Power Co.; Tennessee Railway, Light & Power or any securities or investments of the company, and to Co.; Toledo, St. Louis & Western Railway Co.; Union invest in or acquire by repurchase or otherwise any secu- Pacific Railway Co.; United British Oilfields of Trinidad; rities or investments of the kinds before enumerated, and United Electric Tramways Co. of Caracas; United Railto vary the securities and investments of the company ways Investment Co.; Victor American Fuel Co.; Victoria from time to time. Falls & Transvaal Power Co.; Virginia Land Co.; Wabash (4) T.o make advances upon, hold in trust, buy, sell, Railway Co.; Western Canada Flour Mills Co.; Western and dispose of on commission or otherwise, any such secu- Dry Dock & Shipbuilding Co.; Western Light & Power Co.; rities or investments as aforesaid, and upon the securities Wichita Falls & North-Western Railway Co. of landed property, buildings, and hereditaments, in any British, colonial, or foreign country or State, and to act A considerable increase in the number of as agents or trustees for any of these purposes. investment trusts is noticeable after 1870. In Then follow the ordinary, essential provisions for trans- 1886 there were only 12 investment trust com- acting the business of the company, for increasing its capital from time to time, if desired, etc. panies, with a capital of £6,500,000, entered at II. Share capital.—In the articles of association the the London Stock Exchange. But it may be nominal capital of the company is £1,000,000 in 100,000 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

NOVEMBEE, 1920. FEDEEAL RESERVE BULLETIN. 1171 shares of £10 each, and the first issue of the shares was or of any two or more of them, any shares or stock in £600,000 in 60,000 shares of £10 each, and the directors any company purchased, acquired on behalf of, or for were empowered to make, from time to time, any addi- the purposes of, the company; (i) enter into, rescind, tional issue of share capital beyond the first issue until vary, and carry into execution any agreements, arrangethe whole original share capital of £1,000,000 had been ments, or compromises for the purposes of the company, issued. It was provided that the shares of the company and enforce the performance of the same; (j) make and when and as fully paid up should be converted into pre- give receipts, releases, and other discharges for moneys ferred stock and deferred stock, in the proportions of and debts payable to the company, and for the claims three-fifths preferred stock and two-fifths deferred stock; and demands of the company, and compound for the the preferred stock to be entitled to a preferential charge same; (k) form a reserve fund out of the moneys of the as to capital, and to receive a cumulative preferential company, and manage, appropriate, and dispose of such dividend at the minimum rate of 4 per cent per annum, reserve, and declare the amount of the profit of the comand also to receive one-half of the surplus profits that might pany; (I) refer any claims and demands of and against be divided after the deferred stock had received a divi- the company to arbitration, and perform and observe dend of 8 per cent, the deferred stock receiving the other the awards thereon; (m) from time to time provide for half; but the preferred stock should in no event receive the management of the affairs of the company abroad in more than 5 per cent (being 1 per cent, contingent on the such manner as they think fit, and in particular appoint profits of each year and noncumulative, in addition to the any persons to be attorneys or agents of the company, aforesaid 4 per cent which is cumulative), the deferred with such powers and upon such terms as may be thought stock receiving any further surplus profits that might be fit; (n) do all things requisite for compliance with the divided. requirements of the statutes; (o) execute in the name III. Debenture capital.-—The directors were authorizedof the company, in favor of any director or other person to raise debenture capital by the issue of debentures or who may incur, or be about to incur, any personal liability, debenture stock, at such price and on such terms and whether as principal or surety, for the benefit of the conditions as they might think fit, but no debenture company, when required by such director, sufficient stock could be raised or issued by the directors to bear bonds of indemnity, mortgages of or charges on the cominterest at a rate exceeding 4 per cent per annum. The pany's property; (p) negotiate and make arrangements debenture capital was made a charge upon the whole for and carry into effect any lawful amalgamation or undertaking and property of the company. All amounts combination of the interest of the company with any received by the company in respect to such debenture other company, corporation, or persons, but not so as capital were required to be invested in some of the to amount to a complete amalgamation of the company, securities or investments authorized by the memorandum except with the sanction of a special resolution. of association. It is a fundamental principle of the V. The placing^ of money.—The directors are required to constitution of the company that the total amount of invest or otherwise deal with the moneys of the company debenture capital outstanding at any one time shall not in accordance with the memorandum of association: Proexceed the amount of share capital for the time being vided, That no purchase or acquisition of any^ particular issued; and this provision is not capable of being altered. security, other than Government stocks, public funds, or IV. Powers of directors.—Far-reaching authority in the securities of the United Kingdom, shall be made, by which, management of the company is vested in the directors. at the current market value at the time of such purchase There is little qualification or limitation of their general or acquisition, the holding of the company in such security powers. They (a) commence, conduct, and manage all would exceed in value one-twentieth of the issued share or any of the business of the company mentioned in the and debenture capital of the company for the time being. memorandum of association, as they from time to time No investment shall be made in shares of companies upon think expedient, and in particular carry on and settle, which there is unlimited liability and not more than oneat their discretion, all the details of the business of the twentieth of the capital in all shall at any time be inseveral concerns for the time being carried on by the vested in shares of companies with limited and uncalled company, and obtain all powers, and make all agreements liability, and then only with the unanimous consent of and arrangements incidental or conducive thereto; (b) the directors. allot and issue the shares of the company, and exercise The directors must, on making any change of investment their discretion as to the registration of or refusal .to or other financial transaction of the company, maintain register, transfers of shares, and all other discretions as strictly as possible the relative rights of separation behaving reference to the shares of the company; (c) make tween capital moneys and income and deal with the same calls on shares not fully paid, accept payment in advance accordingly and have power to make all apportionments of calls, determine the terms of such acceptance, issue necessary in that behalf. shares as fully or partially paid up, credit shares with VI. Dividends.—The profits made during the financial moneys as if paid up, and make and issue share warrants; year are applicable to payment of dividends: Provided, (d) settle and determine upon the investment of the That if any new shares or capital are issued with any company's capital, whether share or debenture, in the preference, priority, or guaranty, regard must be had securities or investments authorized by the memorandum thereto in the distribution of the net income. Before of association, and purchase and pay for the same; (e) recommending any dividend, the directors shall set apart appoint and remove, and determine the duties, and fix such sums or sum as in their judgment may be necessary the salaries and other remuneration of the secretary, to meet any claims or contingent liabilities against the clerks, agents, and other officers and servants of the com- company or which they may think it expedient to set pany; (/) institute, conduct, defend, take part in, com- apart for any purpose of the reserve fund, or other purpose, promise, refer, or abandon legal proceedings by or against or they may retain any part of the profits of the company the company; (g) do and carry on all such acts and things as an undivided balance of revenue account without as the company is by the memorandum of association specially setting the same apart. The company in general authorized to do anol carry on, except any requiring, meeting may declare a dividend to be paid to the members under the statutes, the sanction of a special resolution; or any class thereof, according to their respective rights (h) acquire, upon any terms the directors think fit, any and interests; but no larger dividend shall be declared rights, privileges, or property which the company can than is recommended by the directors. The declaration under the memorandum of association acquire or become of the directors as to the amount of the profit shall be conpossessed of, and use the same for the purposes of the clusive. When in the opinion of the directors the income company, and, in particular, have transferred into or of the company, as shown by a balance sheet made out to registered in the names of the company or of the directors, the end of the half year, permits half-yearly payments on Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1172 FEDERAL RESERVE BULLETIN. NOVEMBER, 1020. account of dividend, such interim dividends may be de- The powers granted to the trust just reviewed clared and paid by the directors for such half year, and are apparently as broad as could be desired for may be so paid on both the preferred and deferred stock such an organization. There are, however, of the company; and if the net income for the whole year shall in such case prove insufficient to pay the full mini- additional powers exercised by other commum dividend of 4 per cent for such year on the preferred panies, e. g., to establish and carry on the stock, the holders of such preferred stock shall be entitled business of a bank, to negotiate loans for to have such deficiency made up out of subsequent profits Governments, to promote companies, etc. In up to the rate of 4 per cent for such year. the case of one organization the articles of VII. Expenses of management.—A sum equal to onehalf per cent upon the first £500,000 of the share capital association provide for an advisory board in and debenture capital of the company subscribed, and North America, and the powers of that board one-quarter per cent upon all such capital subscribed shall be cited in full in order to indicate the beyond £500,000 during any financial year shall be set exact relation of its members to the home aside and received by the directors out of the revenue of the company for ordinary expenses of management. organization: This sum includes the remuneration of the directors. This remuneration is divided among the directors as they ART. 119. A body called in these presents the advisory may think fit. The ordinary expenses of management board is constituted in the manner and for the purposes shall not be deemed to include law costs, nor expenses of herein mentioned. the issue of the share and debenture capital, nor the ex- ART. 120. The advisory board shall consist of not more penses and charges connected with the purchase or sale than seven members or Jess than three. The qualification of securities. of any member of the advisory board shall be the same as VIII. Growth of the company and character of holdings.— that of a director. Any member of the advisory board shall In February, 1890, there was a new issue of 30,000 shares be entitled to be present and speak, but not to vote at all of £10 each. In March, 1900, the then capital of the meetings of the board held whilst such member shall be in England, and also, upon giving to the secretary an address company was increased to £1,500,000 by the creation of for service in the United Kingdom, to have sent by post 50,000 shares of £10 each. In December, 1907, the share to him at such address notice of all board meetings in the capital was increased to £2,000,000 by the creation of same manner as if he were a director. A director may be 50,000 new shares of £10 each. The report of the directors a member of the advisory board. for the year ended December 31, 1918, showed that the number "of the company's investments was 274, and they ART. 121. The advisory board shall superintend and were distributed as follows: assist in the conduct of the company's business by any £ s. d. managing director or manager or agent or agents in North America, and no investment shall be made by such manag- Bonds of United States railways... 1, 093, 447 0 5 ing director or manager, or agent or agents unless the same Guaranteed and preference shares of shall have been previously approved by resolution of the United States railways 293,179 1 1 advisory board, evidenced in writing under the hand of Common shares of United States railthe secretary and of the chairman of the meeting at which ways 161,098 5 5 such resolution was passed. Bonds, debenture stocks, and guaranteed ART. 122. The advisory board shall in all respects and preference shares of railways other observe and conform to such directors as may from time to than in United States 889, 351 15 3 time be given to it by the board, who may from time to Ordinary shares of railways other than in time and at any time intrust to and confer upon the the United States 57,359 0 0 advisory board such of the powers exercisable under these Total in railways, including street""" presents by the board as it may think fit, and may confer railways 2,494,435 2 2 such powers for such time and upon such terms and con- Bonds and debentures £ a. d. ditions and with such restrictions as it thinks expedient, of other companies... 919,928 15 4 and it may confer such powers either collaterally with or Stocks and shares of to the exclusion of and in substitution for all or any of the other companies 812,234 7 11 powers of the board in that behalf, and may from time to Foreign, State, and city time revoke, withdraw, alter, or vary all or any such loans 83,776 18 8 powers. British Government se- ART. 123. The advisory board at any time may act, notcurities 1,100,080 13 6 withstanding any vacancy in its body. — 2, 916, 020 15 5 ART. 124. Except where otherwise expressly provided all the provisions of these presents, with reference to the Investments as per balance sheet. . 5, 410, 455 17 7 rotation of directors and proceedings of the board, shall The company paid dividends in that year of 5 per cent mutatis mutandis apply to the rotation and proceedings of on £1,200,000 preferred stock and 14 per cent on £800,000 the members of the advisory board, except that .the memdeferred stock. Since 1898, when the dividend on de- bers of the advisory board shall in no case be elected by ferred stock was 5 per cent, till 1912, when the present the company, but every vacancy on such board shall be rate of 14 per cent was reached, there were only two years filled by the appointment thereto of such person as the when the dividend was not increased. In 1919 the valu- continuing members for the time being of the advisory ation of the capital showed a rise of about 4 per cent. board may nominate with the previous approval of the There was a market depreciation of £473,250 against board. which the company has the reserve and carry forward, Two members of the advisory board, other than the amounting in all to £1,206,369. The revenue for the year, managing director or manager, present in person, shall after providing for interest on temporary loans, income form a quorum. tax, expenses of management, etc., was £187,752 3s. 3d. ART. 126. The advisory board may from time to time Deducting therefrom interest on debenture stock and appoint any person to be its secretary, and subject to the debentures for the year (£55,425 8s. lOd.) there remained terms of such appointment may from time to time remove a balance of £132,326 14s. 5d., which, added to the balance such secretary and appoint another in his place, or otherbrought forward from the preceding year (£66,593 4s. 4d.) wise act in relation to such secretary, as the advisory board makes the amount carried forward to next year £76,369 in its discretion may think fit. The remuneration of such 18s. 9d. secretary shall be from time to time fixed by the board. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

NOVEMBER. 1920. FEDERAL RESERVE BULLETIN. 1173 A variation in the organization of invest- ments in Russia. In 1912 the investments at ment trusts is to be found in another company. middle market prices had an aggregate value, Its revenue is derived from three sources: First, as stated in the assets, of £1,482,000. In the interest and dividends from investments. vear 1913 the assets had increased to some These, after deducting interest on money bor- £2,000,000. In May of 1913, in conjunction rowed and loaned during the year, aggregated with a powerful syndicate, this trust issued £47,061. Secondly, trusteeships, registrar- Russian-South Eastern Railway Co.7s governships, and secretaryships. The company is ment guaranteed bonds to the amount of now acting as trustee for sums involving £3,096,300. For the period January to June, £64,292,107, as well as registrar for securities 1914, the trust had earned substantial profits, and shares having a total nominal value of a large part of which was absorbed in the sec- £10,880,380. The revenue during the year de- ond half of the year by losses caused by the rived from these sources amounted to £10,383. war. The directors recognized that the • war Thirdly, carrying on the business of an indus- would lead to reduced revenues, necessitating trial branch, arranging and financing industrial drastic reduction in the trust's expenditures, undertakings, underwriting, issuing new capital. but such reduction could only be made grad- This company says that of its investments at ually. The assets in the balance sheet of 1915 the end of a recent financial year over 61 per were carried at middle market prices of Decemcent were in railways, electric railways, electric ber 31, 1913, and those subsequently acquired light, and gas or water power companies, and were carried at cost, making a total amount over 60 per cent were quoted on the London of investment of over £2,000,000. The direc- Stock Exchange. The scope of this company tors were able to report an increase in the trust is restricted to that of an investment trust investments in 1916, owing to the liquidation company, but in normal times a large and of syndicates which had in the previous year profitable general financial business in which been included in the list of debtors, but^ the privacy is an essential element is carried on. gradual falling off in revenue and the noninterest paying investments of the trust were In their annual reports some of the trusts affected generally by the war conditions. The give full lists of their holdings of securities, latter reports of the trust do not enter into any which show widespread and varied dealings. of the peculiar conditions of the turmoil -in As a rule, however, the companies do not pub- Russia, but continue the statement of investlish this detailed information, which, of course, ment in the trust owned debenture stock at is useful only to holders of shares or debenture costs, while the other investments are taken at stock or to intending investors. The directors middle market prices at the 31st of December, of these corporations are somewhat proud, and 1913. rightly so, of their success in the past, in a de- The prewar position enjoyed by investment partment of finance requiring accurate knowltrust companies in Great Britain was to a edge of conditions abroad, a nicely balanced large extent retrieved during 1919 by the subscheme not only attractive to investors but stantial rise which took place in prices. One also affording ample security to share and deeffect of the war on the business of these benture holders, and a certain subtlety in companies is, however, noticeable. Prior to working out the averaging process and in prothe war there was available in Great Britain viding and utilizing to the best advantage the every year a large surplus of funds for foreign reserve fund. investment. Owing to the tremendous expense *y* ^p *7^ ?jC *7^ to which the country has been put in connec- It must not be understood from the fore- tion with the prosecution of the war, which going survey that all investment trusts had uni- has brought the national debt up to $40,000,formly good results from their investments. 000,000 and has obliged the British Government During the years of the war, particularly, to avail itself of every possible expedient not investment trust companies in Great Britain only to keep money in the country and to have passed through critical times, owing to attract it into Government coffers, but to the serious fall in values. The degree of seri- obtain money and credit from abroad as well, ousness depended, of course, upon the kind of the surplus funds available for foreign investsecurities and the particular country in which ment have dwindled, and the directors of these a company was interested. An organization investment trusts have been forced to reverse dealing mostly in Russian securities, for exam- their former methods of business and to enple, has had a very interesting and sad history deavor to push the sale of British securities to relate in progressive degree during the war. abroad. In this endeavor, however, they have The company was organized November 1, 1909, met with considerable difficulty on account of and devoted most of its attention to invest- the present British income taxes. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1174 FEDERAL RESERVE BULLETIN. NOVEMBER, 1920. State Banks and Trust Companies Admitted. Fiduciary Powers Granted to National Banks. The following list shows the State banks and trust com- The applications of the following banks for permission panies which have been admitted to membership in the to act under section 11 (k) of the Federal Reserve Act have Federal Reserve System during the month of October, been approved by the Board during the month of October, 1920. 1920: One thousand four hundred and forty-six State insti- DISTRICT NO. 1. tutions are now members of the system, having a total Trustee, executor, administrator, registrar of stocks and bonds, guardian capital of $506,068,000, total surplus of $499,149,680, of estates, assignee, receiver, committee of estates of lunatics: and total resources of $10,129,881,264. The Third National Bank of Springfield, Springfield, Mass. The New Haven Bank, N. B. A., New Haven, Conn. DISTRICT NO. 2. Capital. Surplus. Total Trustee, executor, administrator, registrar of stocks and bonds, guardian of estates, assignee, receiver, committee of estates of lunatics: The Peoples National Bank of Hudson Falls, Hudson Falls, N. Y. The Wyoming County National Bank of Warsaw, Warsaw, N. Y. District No. 8. The First National Bank of Garfield, Garfield, N. J. Lewis County Trust Co., Lowville, N.Y $100,000 $50,000 $950,400 DISTRICT NO. 3. Guardian of estates, assignee, receiver, committee of estates of lunatics: District No. S. The First National Bank of Lansdale, Lansdale, Pa. The Southwark National Bank, Philadelphia, Pa. Dime Trust <fe Safe Deposit Co., Trustee, executor, administrator, registrar of stocks and bonds, guardian Shamokin, Pa 125,000 125,000 1,461,025 of estates, assignee, receiver, committee of estates of lunatics: The MiU Hall State Bank, Mill The First National Bank of Port Allegany, Port Allegany, Pa. Hall, Pa 35,000 15,000 323,698 The Chelsea National Bank of Atlantic City, Atlantic City, N. J. The First National Bank of Camden, Camden, N. J. District No. 6. The Ephrata National Bank, Ephrata, Pa. Bank of Commerce, Clayton, Ala. 50,000 4,000 213,109 Exchange Bank of Valdosta, Ga.. 100,000 14,800 368,845 DISTRICT NO. 4. Trustee, executor, administrator, registrar of stocks and bonds, guardian District No. 7. of estates, assignee, receiver, committee of estates of lunatics: Brotherhood of Locomotive Engineers Cooperative National Bank Madison County State Bank, of Cleveland, Ohio. Winterset, Iowa 125,000 125,000 1,348,455 DISTRICT NO. 5. District No. 9. Trustee, executor, administrator, registrar of stocks and bonds, guardian of estates, assignee, receiver, committee of estates of lunatics: Citizens State Bank of St. Peter, The Huntington National Bank, Huntington, W. Va. St. Peter, Minn 50,000 20,000 770,763 First State Bank, Walnut Grove, Minn 50,000 2,500 400,627 DISTRICT NO. 6. Clarks Fork Valley Bank, From- Trustee, executor, administrator, registrar of stocks and bonds, guardian berg, Mont 25,000 1,000 210,756 of estates, assignee, receiver, committee of estates of lunatics: Farmers & Merchants State Bank The Whitney-Central National Bank of New Orleans, New Orleans, of Saco, Saco, Mont 25,000 1,000 223,469 La. First State Bank, Golden Valley, N.Dak 25,000 2,500 220,789 DISTRICT NO. 7. Citizens Bank & Trust Co., Rapid Trustee, executor, administrator, registrar of stocks and bonds, guardian City, S. Dak 50,000 10,000 636,930 of estates, assignee, receiver, committee of estates of lunatics: The Manufacturers National Bank of Eacine, Racine, Wis. District No. 10. The First National Bank of Ripon, Ripon, Wis. Trustee, executor, administrator, registrar of stocks and bonds, guardian Midwest Reserve Trust Co., Kan- of estates, assignee, receiver: sas City, Mo 2,000,000 200,000 23,886,704 The First National Bank of Paulina, Paulina, Iowa. District No. 11. DISTRICT NO. 9. Kilgore State Bank, Kilgore, Tex. 25,000 12,500 198,551 Trustee, executor, administrator, registrar of stocks and bonds, guardian of estates, assignee, receiver, committee of estates of lunatics: District No. 12. The First National Bank of Windom, Windom, Minn. Aurora State Bank, Aurora, 25,000 13,000 369,217 DISTRICT NO. 10. Central Point State Bank, Centi Point, Oreg 25,000 5,000 328,866 Trustee, executor, administrator, registrar of stocks and bonds, guardian Bank of Iron County, Parowan, of estates, assignee, receiver, committee of estates of lunatics: St U at t e a h Bank of Payson, Payson, 35,000 21,000 324,656 Th O e k S la o . uthwest National Bank of Oklahoma City, Oklahoma City, Utah 50,000 10,000 425,253 DISTRICT NO. 11. Trustee, executor, administrator, registrar of stocks and bonds, guardian of estates, assignee, receiver, committee of estates of lunatics: WITHDRAWALS. Dallas National Bank, Dallas, Tex. The Citizens National Bank of Waxahachie, Waxahachie, Tex. The State National Bank of El Paso, El Paso, Tex. Elizabeth State Bank, Elizabeth, 111. Trustee, executor, administrator, registrar of stocks and bonds, guardian Oyster Bay Bank, Oyster Bay, N. Y. of estates, assignee, receiver: The First National Bank of Brenham, Brenham, Tex. CHANGE OF NAME. Farmers Savings Bank, Walla Walla, Wash., to The Farmers and Merchants Bank of Walla Walla. Foreign Branches. A branch of the National City Bank, New CONVERSION. York City, was opened at London, England, • The Marine Bank of Seattle, Seattle, Wash., to The Marine Nationa on October 1, 1920. Bank of Seattle. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

NOVEMBER, 1020. FEDERAL RESERVE BULLETIN. 1175 New National Bank Charters. back to April of 1915. When separated according to Federal Reserve districts, the September statement The Comptroller of the Currency reports the following reveals more failures than in that month of 1919 in each increases and reductions in the number and capital of of the 12 districts, aside from the third district, and only national banks during the period from September 25 to in the fourth and sixth districts is there any reduction in October 29, 1920, inclusive: the indebtedness. In several instances, notably in the second and seventh districts, the September liabilities Banks. are very much above those of that month of last year. New charters issued to With capital of. $2,660,000 Failures during September. Increase of capital approved for With new capital ofJ "'2*975*666 Aggregate number of new charters and banks in- Number. Liabilities. creasing capital With aggregate of new capital authorized 5,635,000 District. Number of banks liquidating (other than those 1920 1919 1920 1919 consolidating with other national banks under the act of June 3, 1864) C R T N A o a e g u 3 r w p d e t g m , a 1 d i i u r t t l e 8 b u c h a g 6 c e t l n i a i 4 r o o u n o t t ) e m n g f o h e f s b c o c a r a b e a f m p r a n p c i n a e i t a o t k a t a p i b f l s o l i a t n b r a r n ( e a e a o l k d d l n t s u h u k b c e c s a t r i i n n o g t k g n o h s i a n c u n a g n p t d i i h t n e a o t r l s o e t h li e c q o u a n i c s d t o a l o t i i d f o a n J t u i n n o g e r "7 8 7 5 5 7 0 * 5 6 , , 0 0 6 0 0 6 0 0 S T F F F S S E e e i i o i h i x r c g f v u i s t o t r h e h t r h d n n t t . h h d . t . h . . 1 3 2 7 6 5 4 6 4 5 5 3 5 4 4 7 5 4 4 4 5 9 2 4 1 8 2 8 2 2 9 0 8 $ 1 5 1 1 1 1 4 , , , , , , 6 3 6 3 4 5 3 5 7 6 4 1 4 5 5 0 9 6 0 7 8 1 2 0 , , , , , , , , 7 5 4 7 6 8 2 3 2 1 2 6 7 8 8 7 8 2 4 7 3 3 1 1 $ 2 1 1 , , 0 5 8 2 7 7 6 3 3 5 3 1 1 0 6 7 7 5 9 0 6 4 1 1 , , , , , , , 5 3 3 6 3 8 2 1 4 0 5 1 7 8 3 2 6 7 2 6 1 0 0 0 Consolidation of national banks under the act of Ninth 16 9 99, 730 90,282 Nov. 7,1918 Tenth 26 20 466,451 152,458 Capital *i,'666"666 Eleventh 36 7 864,924 48,883 The foregoing statement shows the aggregate of in- Twelfth 91 68 1,265,544 403,274 creased capital for the period of the banks embraced in statement was Total... 677 473 29,554,288 8,791,319 Against this there was a reduction of capital owing 5,635,000 to liquidation (other than for consolidation with other national banks under the act of June 3, Acceptances to 100 Per Cent. 1864), and reductions of capital of 850,000 Net increasse 4,785,000 Since the issuance of the October BULLETIN the following banks have been authorized by the Federal Reserve 1 Includes an increase in capital of $100,000 incident to a consolidation Board to accept drafts andibills of exchange up to 100 per under act of Nov. 7,1918. cent of their capital and surplus: National Bank of Commerce, Detroit, Mich. Dollar Exchange. Manufacturers & Traders National Bank, Buffalo, N. Y. Under the provisions of section 13 of the Citizens Commercial Trust Co., Buffalo, N. Y. First National Bank, Greensburg, Pa. Federal Reserve Act, which provides that member banks, with the approval of the Federal Reserve Board, may accept drafts for the pur- November Forecast of Corn Production. pose of furnishing dollar exchange, drawn upon November crop reports do not differ from October forethem by banks or bankers located in foreign casts for any of the principal crops, with the exception of countries or dependencies or insular posses- corn. Figures of corn production issued by the Bureau of sions of the United States in which it is deter- Crop Estimates as of November 1 are shown by Federal mined that the usages of trade require such Reserve districts in the table below. Although the corn crop is expected to be about 17,000,000 bushels below the acceptance facilities, the Board has designated October forecast, yet it is the largest crop ever produced. as such the following countries and insular November forecasts are lower than those of the previous possessions: Argentina, Bolivia, Brazil, British month for all the important corn-producing districts, ex- Guiana, British Honduras, Chile, Colombia, cept the Chicago district, where an expected increase of 25,000,000 bushels is shown. The corn crop of the Chi- Costa Rica, Cuba, Dutch Guiana, Ecuador, cago district in the statement reaches 965,000,000 bushels, French Guiana, Guatemala, Honduras, Nica- a larger total than the crop raised in the entire United ragua, Panama, Paraguay, Peru, Porto Rico, States in any year prior to 1870. San Salvador, Santo Domingo, Trinidad, Uru- Production of corn by Federal Reserve districts. guay, and Venezuela. [Forecasts of the Bureau of Crop Estimates.] [In thousands of bushels.] Commercial Failures Reported. Nov. 1 I Oct.l Sept.l Federal Reserve district. forecast forecast forecast Estimate Continuance of the increase in the country's business for 1920. for 1920. for 1920. for 1919. mortality is reflected in the 576 commercial failures reported to R. G. Dun & Co. during three weeks of October, Boston 8,101 8,166 7,692 ! 10,276 as against only 297 in the corresponding period of 1919. New York 38,533 39,171 37,866 i 41,089 The returns for September, the latest month for which Philadelphia. 63,423 62,563 61,769 ! 66,444 complete statistics are available, disclose 677 defaults C R l i e c v h e m la o n n d d.... 1 2 9 0 9 6 , , 0 9 3 3 7 2 2 1 1 9 1 9 , ,3 2 4 8 9 2 2 20 1 2 2 , , 3 0 3 7 4 7 ! | 2 1 1 8 2 8 , , 2 9 9 9 7 4 for $29,554,288 of liabilities, whereas in September of last Atlanta 251,145 259,043 259,295 ! 240,315 year there were but 473 insolvencies, involving $8,791,319 Chicago 964,830 939,972 896,181 i 927,852 of indebtedness. Excepting the 681 reverses of July of M St. i n L n o e u a i p s olis.. 2 4 5 5 0 6, , 0 0 7 8 0 8 4 2 6 6 8 0 , , 0 0 0 3 4 0 4 23 6 4 4 , , 2 9 2 3 6 8 ! | 3 24 8 2 0 , , 3 7 6 2 3 2 the present year, the September failures exceed in number Kansas City... 554,258 561,543 548,679 | 372,870 those of any month since December, 1918, and the liabil- Dallas 197,541 197,680 196,997 I 225,743 ities, owing to an unusual number of large defaults, are San Francisco. 9,168 9,389 9,295 ! 8,485 the heaviest of any month, excepting June of this year, Total.... 3,199,126 3,216,192 3,131,349 ; 2,917,450 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1176 FEDERAL RESERVE BULLETIN. NOVEMBER, 1920. RULINGS OF THE FEDERAL RESERVE BOARD. Eligibility of paper incident to cotton factorage business. section 13 of the Federal Reserve Act, however? the test of eligibility is not the character of On page 1054 of the FEDERAL RESERVE the business of the borrower, but is the use of BULLETIN for November, 1919, the Federal the proceeds of the particular instrument. Reserve Board published a ruling to the effect Inasmuch as the loaning of money is in itself that the note of a cotton factor, the proceeds a finance rather than a commercial operation, of which are used by the cotton factor, to lend a note, the proceeds of which are loaned by to a third party, is finance paper rather than the borrower to a third party, is ineligible for commercial or agricultural paper and is, thererediscount, irrespective of the general character fore, ineligible for rediscount, even though the of the borrower's business. third party to whom such loan is made may use the proceeds for a commercial or agricul- The Board desires to call attention to the tural purpose. The Federal Reserve Board has fact that the ruling does not preclude cotton recently been requested to reconsider this factors' notes from being eligible under some ruling. circumstances. In the first paragraph of the ruling it was said: This ruling has, in effect, been incorporated in the regulations of the Board, Series of 1920, * * * In view of the fact that it is apparent from all which have just been issued. Section A, the evidence on hand that the circumstances and conditions under which so-called cotton factors' paper is issued Paragraph II of Regulation A provides in vary so much in different cases, it is impossible to give part as follows: any categorical answer to the question presented, or to make any general ruling that cotton factors' paper, as The Federal Reserve Board, exercising its statutory such, is eligible or ineligible for rediscount. right to define the character of a note, draft, or bill of exchange eligible for rediscount at a Federal Reserve In reiteration of this statement the Board Bank, has determined that— points out again that the fact that a cotton (a) It must be a note, draft, or bill of exchange which factor is the maker of a note does not of itself has been issued or drawn, or the proceeds of which have determine the eligibility or ineligibility of the been used or are to be used in the first instance, in producing, purchasing, carrying, or marketing goods in one note for rediscount. The test of the eligibility or more of the steps of the process of production, manu- of paper is whether it complies with the terms facture, or distribution, or for the purpose of carrying or of the Federal Reserve Act and the Board's trading in bonds or notes of the United States. regulations, and this in turn involves the The words "in the first instance" did not question of the use of the proceeds. In last appear in the Board's previous regulations analysis this is a question of fact, and it is the and were inserted in Regulation A of the function of the Federal Reserve Banks, rather series of 1920 for the express purpose of making than of the Federal Reserve Board, to deterit clear that the making of loans to third mine questions of fact in the light of the cirparties is a finance rather than a commercial cumstances of particular cases. As was said or agricultural purpose, even though it appears in the last paragraph of the ruling in question: that the third parties are to use the funds for In order to ascertain the necessary facts it may be proper commercial or agricultural purposes. for a Federal Reserve Bank to require statements or affi- After a very full and careful review of the davits from the maker of the note as to the exact nature of the transaction out of which it arises. With these facts which have been presented to the Board, principles as a guide, the Federal Reserve Bank must and of the questions of law involved, the determine the eligibility of any particular paper in the Federal Reserve Board is of the opinion that light of the circumstances in which it was issued, and its the ruling as published and as in effect in- proceeds disposed of. corporated in the Board's regulations is correct In connection with the request made to the in principle, and that under the terms of the Federal Reserve Board that it reconsider its Federal Reserve Act as it now stands a con- previous ruling, the argument was made that trary ruling is not possible. It is urged that section 13 of the Federal Reserve Act makes since the loans made by a cotton factor to his notes of cotton factors eligible for rediscount customers are merely incidental to the main when secured by cotton, irrespective of whether business of the factor which is the marketing or not the proceeds have been, or are to be, of cotton, and since the marketing of cotton used for commercial or agricultural purposes. is a commercial business, a cotton factor's It was urged that this is the effect of that note should be considered eligible commercial part of section 13 which immediately follows paper even though the proceeds are loaned to the definition of eligible commercial and the factor's customers. Under the terms of agricultural paper and which provides that— Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

NOVEMBER, 1920. FEDERAL RESERVE BULLETIN. 1177 Nothing in this act contained shall be construed to cotton growers, accepted by a cooperative marprohibit such notes, drafts, and bills of exchange, secured keting association organized for the purpose of by staple agricultural products, or other goods, wares, or marketing the cotton delivered by the growers, merchandise from being eligible for such discount; but and discounted by the growers at their banks, such definition shall* not include notes, drafts, or bills covering merely investments or issued or drawn for the may be eligible for rediscount by Federal Repurpose of carrying or trading in stocks, bonds, or other serve Banks when it is shown that the proceeds investment securities, except bonds and notes of the of the accepted drafts have been, or are to be, Government of the United States. used by the growers for agricultural purposes. The Board is of the opinion that the word The principle of this ruling is, of course, appli- "such," qualifying notes, drafts, and bills of ex- cable to cotton factors as well as to cooperative change, in the sentence quoted must necessarily marketing associations, so that under it drafts be construed as referring to notes, drafts, and of cotton producers or owners drawn upon and bills of exchange defined above—that is, accepted by the cotton factors may be eligible notes, drafts, and bills of exchange which are for rediscount by Federal Reserve Banks when eligible by reason of the fact that the proceeds discounted by the drawers. This would not be have been or are to be used for agricultural, true, however, if the factor should retain the industrial, or commercial purposes. The Board drafts after acceptance and should discount is of the opinion, therefore, that the provision them at his bank. In that case the factor and quoted is merely a declaration that paper not the producer would be the borrower in the which is eligible for rediscount by reason of the first instance and the use of the proceeds by use of the proceeds is not made ineligible by the factor would determine the eligibility of reason of being secured, and that the pro- the drafts. vision can not be construed, as the Board was The Board understands that it has always urged to construe it, to make eligible for redisbeen the practice in the cotton factorage busicount paper which is secured in the manner ness for the factor's loans to his customers to specified but which is not eligible commercial be evidenced merely by open accounts, and it or agricultural paper as defined in the prehas been said that it is not possible to change ceding part of the section. that practice, established by long custom, so This being so, the precise meaning of the as to require customers to give their notes to phrase "covering merely investments" is of no evidence these loans. The Federal Reserve importance in the case under consideration. Board can not help but feel that this difficulty The clause in which this phrase appears prowill not prove as great as is feared. This is vides in effect that "notes, drafts, and bills not the first time that the plea has been made covering merely investments" shall under no that business usage does not permit of complicircumstances be eligible. This can not, of ance with requirements which those adminiscourse, be construed as an affirmative enacttering the Federal Reserve System consider ment making eligible all paper other than that mandatory as a matter of law or essential as a "covering merely investments." The clause matter of banking prudence, and in many inmerely adds another condition with which stances, notably with respect to the requirepaper must comply in order to be eligible for ment of borrowers' statements, what has at rediscount. Since the Board has determined first seemed impossible has proved by experithat paper the proceeds of which have been ence to be both practicable and beneficial. used to lend to a third party does not meet the requirement as to the use of the proceeds for a Another suggestion has been made by one of commercial or agricultural purpose, such paper the Federal Reserve Banks which may be of is ineligible irrespective of whether or not it is assistance to the cotton factors. When the paper "covering merely investments." factor sells cotton on credit terms which are The Federal Reserve Board has frequently customary and which are not unnecessarily or suggested that if the cotton factor's loans to unreasonably long, if the purchaser gives a note, customers were evidenced by the customers7 or accepts a draft drawn on him by the factor, notes, these notes could be indorsed and dis- for the amount of the purchaser's obligation, counted by the factor and might then be eligi- that note or accepted draft will have been ble for rediscount by Federal Reserve Banks "issued or drawn" for a commercial purpose upon satisfactory evidence that the proceeds within the meaning of section 13 of the Federal of the loans represented by the notes have Reserve Act and will be eligible for rediscount been, or are to be, used for agricultural or com- by Federal Reserve Banks if it complies in mercial purposes. The Board has also had other respects with the law and the Board's occasion to rule recently that drafts drawn by regulations. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1178 FEDEKAL RESERVE BULLETIN. NOVEMBER. 1920. Member banks required to vote for Federal Reserve name of the first, second, and other choices for a director Bank directors. of Class A and for a director of Class B, but shall not vote more than one choice for any one candidate. * * * The Federal Reserve Board has designated Any candidate having a majority of all votes cast in the column of first choice shall be declared elected. If no Tuesday, November 16, 1920, as the date for candidate have a majority of all the votes in the first the opening of the polls for the coming election column, then there shall be added together the votes cast of Class A and Class B directors to succeed by the electors for such candidates in the second column the directors whose terms will expire on and the votes cast for the several candidates in the first column. If any candidate then have a majority of the December 31, 1920. Heretofore comparatively electors voting, by adding together the first and second few ballots have been cast in such elections, choices, he shall be declared elected. If no candidate and in order that each member bank belonging have a majority of electors voting when the first and second to a group which is to elect a Class A or Class B choices shall have been added, then the votes cast in the third column for other choices shall be added together in director will participate in the coming election like manner, and the candidate then having the highest of such directors the Federal Reserve Board number of votes shall be declared elected. desires to point out that the terms of the Federal Reserve Act are mandatory with While it is optional with member banks respect to the authorization by member banks whether or not they shall nominate candidates of officers to cast the votes of member banks for Class A or Class B directors, under the and with respect to the casting of proper terms of the provisions just quoted it is mandaballots by the officers so authorized. tory upon each member bank to authorize, by a resolution of the board of directors or by Under the terms of section 4 of the Federal an amendment to its by-laws, some officer to Reserve Act as amended September 26, 1918, cast a vote in behalf of the bank, in the election each member bank is permitted to nominate of such directors, and upon the officer so authorto the chairman of the board of directors of the ized to certify to the chairman of the Federal Federal Reserve Bank of the district one Reserve Bank his first, second, and third candidate for director of Class A and one choices for such directors. Inasmuch as each candidate for director of Class B, and the Class A or Class B director is elected by one candidate so nominated shall be listed by the group of member banks, nominations may be chairman indicating by whom nominated, and made and ballots shall be cast only by those a copy of said list shall, within 15 days after member banks which belong to the group its completion, be furnished by the chairman which is to participate in the particular to each member bank. Section 4 then proelection. vides that— The law also makes it mandatory upon the Each member bank by a resolution of the board or by an officer casting the ballot to designate his first, amendment to its by-laws shall authorize its president, second, and other choices, and provides that cashier, or some other officer to cast the vote of the member under some circumstances votes for second and bank in the elections of Class A and Class B directors. third choices may determine the election. Within 15 days after the receipt of the list of candidates the duly authorized officer of a member bank shall The Federal Reserve Board has heretofore certify to the chairman his first, second, and other choices ruled that when there are three or more for director of Class A and Class B, respectively, upon a nominees no ballot is valid unless the first, preferential ballot upon a form furnished by the chairman second, and third choices are designated of the board of directors of the Federal Reserve Bank of the district. Each such officer shall make a cross opposite the thereon. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

NOVEMBER, 1920. FEDERAL RESERVE BULLETIN. 1179 REGULATIONS OF THE FEDERAL RESERVE BOARD. WASHINGTON, October 6, 1920. it may have a maturity at the time of discount of not more The Federal Reserve Board transmits herewith a new than six months, exclusive of days of grace. issue of all of its regulations of 1917 applicable to member (b) It arose out of actual commercial trasactions; that banks. Regulation L, relating to "Interlocking bank is, it must be a note, draft, or bill of exchange which has directorates under the Clayton Act," is entirely new. been issued or drawn for agricultural, industrial, or com- Regulation F of the new series supersedes Regulation F, mercial purposes, or the proceeds of which have been Series of 1919, and Regulation K of the new series super- used or are to be used for such purposes. sedes Regulation K, Series of 1920, issued in March of the (c) It was not issued for carrying or trading in stocks, present year. The other regulations of the new series bonds, or other investment securities, except bonds and supersede the corresponding regulations of the 1917 series. notes of the Government of the United States. Regulations A, B, and I have been materially amended. (d) The aggregate of notes, drafts, and bills bearing the Regulation C has been amended only by the insertion of signature or indorsement of any one borrower, whether a two sentences in the first paragraph with reference to the person, company, firm, or corporation, rediscounted for question of when trust receipts and bills of lading drafts any one member bank, whether State or National, shall at may be considered "actual security" within the meaning no time exceed 10 per centl of the unimpaired capital and of section 13 of the Federal Reserve Act. There have surplus of such bank; but this restriction shall not apply been no amendments to Regulation D with the exception to the discount of bills of exchange drawn in good faith of two changes intended to make clear that in the case of against actually existing values. "time deposits, open accounts," the 30 days' written (e) It is indorsed by a member bank. notice of withdrawal must be actually required by the (/) It conforms to all applicable provisions of this regbank, whereas in the case of "savings accounts" and ulation. "time certificates of deposit" the requirement of notice No Federal Reserve Bank may discount for any member will be complied with if the bank reserves the right to State bank or trust company any of the notes, drafts, or demand 30 days' written notice of withdrawals. The only bills of any one borrower who is liable for borrowed money substantial change in Regulation K is an amendment to to such State bank or trust company in an amount greater the paragraph entitled "Acceptances," which permits than 10 per cent2 of the capital and surplus of that State corporations organized under the provisions of section 25a bank or trust company, but in determining the amount of the Federal Reserve Act to accept, subject to substan- of money borrowed from such State bank or trust company tially the same conditions as are imposed by law upon the discount of bills of exchange drawn in good faith member banks, drafts drawn by banks or bankers located against actually existing value and the discount of comin foreign countries, or dependencies or insular posses- mercial or business paper actually owned by the person sions of the United States, for the purpose of furnishing negotiating the same shall not be included. dollar exchange as required by the usages of trade in those Any Federal Reserve Bank may make advances to its countries, dependencies, or possessions. There have been member banks on their promissory notes for a period not no substantial changes in Regulations F and H, and exceeding 15 days, provided that they are secured by Regulations E and G are identically the same as in the notes, drafts, bills of exchange, or bankers' acceptances 1917 series. which are eligible for rediscount or for purchase by Fed- Regulation J, relating to "Check clearing and collec- eral Reserve Banks, or by the deposit or pledge of bonds tion," has not been changed in substance except that or notes of the United States, or bonds of the War Finance certain provisions have been struck out which are no Corporation. longer applicable. Nothing has been added to this regulation and it contains only very general provisions. At II. General character of notes, drafts, and bills of exchange the present time conditions vary so much in the different eligible. districts that it is impracticable to formulate detailed The Federal Reserve Board, exercising its statutory regulations on this subject to be applied in all districts. right to define the character of a note, draft, or bill of ex- The Federal Reserve Board will consider a revision of change eligible for rediscount at a Federal Reserve Bank, this regulation if and when future developments make it has determined that— seem practicable and advisable to issue a more compre- (a) It must be a note, draft, or bill of exchange which hensive regulation. has been issued or drawn, or the proceeds of which have Instructions which concern only Federal Reserve Agents been used or are to be used, in the first instance, in producor Federal Reserve Banks will be covered in separate ing, purchasing, carrying, or marketing goods 3 in one or letters or regulations, as in the past. W. P. G. HARDING, Governor. 1 Under the terms of section 11 (TO) as amended by the act of Mar. 3, 1919, a Federal Reserve Bank may, until Dec. 31, 1920, rediscount for W. T. CHAPMAN, Secretary. any member bank, whether State or National, notes, drafts, and bills bearing the signature or indorsement of any one borrower in an amount not to exceed 20 per cent of the member bank's capital and surplus, provided that the excess over and above 10 per cent be secured by not less than a like face amount of bonds or notes of the United States issued REGULATION A, SERIES OF 1920. since Apr. 24,1917, or certificates of indebtedness of the United States. 2 Under the terms of section 11 (TO) as amended by the act of Mar. 3/ (Superseding Regulation A of 1917.) 1919, a Federal Reserve Bank may, until Dec. 31, 1920, rediscount for a member State bank or trust company paper of any one borrower secured by not less than a like face amount of bonds or notes of the United States REDISCOUNTS UNDER SECTION 13. issued since Apr. 24, 1917, or certificates of indebtedness of the United States, even though such State bank or trust company may already have A. NOTES, DRAFTS, AND BILLS OF EXCHANGE. loaned to the borrower under his regular line of credit in excess of the 10 per cent limit defined above. If, however, the member State bank or I. General statutory provisions. trust company has loaned to one borrower in excess of that 10 per cent limit under his regular line of credit the Federal Reserve Bank can not Any Federal Reserve Bank may discount for any of its rediscount for that State bank or trust company any of the paper of that borrower taken under that regular line of credit, but may rediscount member banks any note, draft, or bill of exchange, pro- any paper so secured by Government obligations of the kinds specified vided— up to an amount not in access of 20 per cent of the capital and surplus of (a) It has a maturity at the time of discount of not more such State bank or trust company. than 90 days, exclusive of days of grace; but if drawn or 3 When used in this regulation, the word "goods" shall be construed to include goods, wares, merchandise, or agricultural products, including issued for agricultural purposes or based on live stock, live stock. 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1180 FEDERAL RESERVE BULLETIN. NOVEMBER, 1920. more of the steps of the process of production, manufacture, to the order of a specified person; and a trade acceptance or distribution, or for the purpose of carrying or trading in is defined as a draft or bill of exchange, drawn by the bonds or notes of the United States. seller on the purchaser of goods sold,1 and accepted by (b) It must not be a note, draft, or bill of exchange the such purchaser. proceeds of which have been used or are to be used for per- (b) Evidence of eligibility and requirement of statemanent or fixed investments of any kind, such as land, ments.—A Federal Reserve Bank shall take such steps buildings, or machinery, or for any other capital purpose. as it deems necessary to satisfy itself as to the eligibility (c) It must not be a note, draft, or bill of exchange the of the draft, bill, or trade acceptance offered for rediscount proceeds of which have been used or are to be used for in- and may require a recent financial statement of one or more vestments of a purely speculative character or for the pur- parties to the instrument. The draft, bill, or trade acceptpose of lending to some other borrower. ance should be drawn so as to evidence the character of the (d) It may be secured by the pledge of goods or collateral underlying transaction, but if it is not so drawn evidence of any nature, including paper, which is ineligible for re- of eligibility may consist of a stamp or certificate affixed discount, provided it (the note, draft, or bill of exchange) by the acceptor or drawer in a form satisfactory to the is otherwise eligible. Federal Reserve Bank. III. Applications for rediscount. VI. Six months' agricultural paper. (a) Definition.—Six months' agricultural paper, within All applications for the rediscount of notes, drafts, or bills the meaning of this regulation, is defined as a note, draft, of exchange must contain a certificate of the member bank, bill of exchange, or trade acceptance drawn or issued for in form to be prescribed by the Federal Reserve Bank, agricultural purposes, or based on live stock; that is, a that, to the best of its knowledge and belief, such notes, note, draft, bill of exchange, or trade acceptance the prodrafts, or bills of exchange have been issued for one or ceeds of which have been used, or are to be used, for more of the purposes mentioned in II (a), and, in the case agricultural purposes, including the breeding, raising, of a member State bank or trust company, all applications fattening, or marketing of live stock, and which has a must contain a certificate or guaranty to the effect that the maturity at the time of discount of not more than six borrower is not liable, and will not be permitted to become months, exclusive of days of grace. liable during the time his paper is held by the Federal (b) Eligibility.—To be eligible for rediscount, six Reserve Bank, to such bank or trust company for borrowed months' agricultural paper, whether a note, draft, bill of money in an amount greater than that specified in I above. exchange, or trade acceptance, must comply with the respective sections of this regulation which would apply IV. Promissory notes. to it if its maturity were 90 days or less, (a) Definition.—A promissory note, within the meaning of this regulation, is defined as an unconditional promise, B. BANKERS' ACCEPTANCES. in writing, signed by the maker, to pay, in the United States, at a fixed or determinable future time, a sum cer- (a) Definition.—-A banker's acceptance within the tain in dollars to order or to bearer. meaning of this regulation is defined as a draft or bill of (b) Evidence of eligibility and requirement of state- exchange, whether payable in the United States or abroad ments.—A Federal Reserve Bank must be satisfied by ref- and whether payable in dollars or some other money, of erence to the note or otherwise that it is eligible for redis- which the acceptor is a bank or trust company, or a firm, count. The member bank shall certify in its application person, company, or corporation engaged generally in the whether the note offered for rediscount has been discounted business of granting bankers' acceptance credits. for a depositor other than a bank or for a nondepositor and, (b) Eligibility.—A Federal Reserve Bank may redisif discounted for a bank, whether for a member or a non- count any such bill having a maturity at time of discount member bank. The member bank must also certify of not more than three months, exclusive of days of grace, whether a financial statement of the borrower is on file which has been drawn under a credit opened for the purwith it. pose of conducting or settling accounts resulting from a A recent financial statement of the borrower must be transaction or transactions involving any one of the on file with the member bank in all cases, except with following: respect to any note discounted by a member bank for (1) The shipment of goods between the United States a depositor other than a bank or another member bank if— and any foreign country, or between the United States (1) It is secured by a warehouse, terminal, or other and any of its dependencies or insular possessions, or besimilar receipt covering goods in storage, or by bonds or tween foreign countries. While it is not necessary that notes of the United States; or shipping documents covering goods in the process of ship- (2) The aggregate of obligations of the borrower redis- ment be attached to drafts drawn for the purpose of financcounted and offered for rediscount at the Federal Reserve ing the exportation or importation of goods, and while it is Bank by the member bank is less than a sum equal to not essential, therefore, that each such draft cover specific 10 per cent of the paid-in capital of the member bank goods actually in existence at the time of acceptance, and is less than $5,000. nevertheless it is essential as a prerequisite to eligibility The Federal Reserve Bank shall use its discretion in either (a) that shipping documents or a documentary extaking the steps necessary to satisfy itself as to eligibility. port draft be attached at the time the draft is presented Compliance of a note with II (b) may be evidenced by for acceptance, or (b) if the goods covered by the credit a statement of the borrower showing a reasonable excess have not been actually shipped, that there be in existence of quick assets over current liabilities. A Federal Re- a specific and bona fide contract providing for the exportaserve Bank may, in all cases, require the financial state- tion or importation of such goods at or within a specified ment of the borrower to be filed with it. and reasonable time and that the customer agree that the accepting bank will be furnished in due course with shipping documents covering such goods or with exchange V. Drafts, bills of exchange, and trade acceptances. arising out of the transaction being financed by the credit. (a) Definition.—A draft or bill of exchange, within the A contract between principal and agent will not be conmeaning of this regulation, is defined as an unconditional sidered a bona fide contract of the kind required above, order in writing, addressed by one person to another, signed by the person giving it, requiring the person to 1 A consignment of goods or a conditional sale of goods can not be whom it is addressed to pay in the United States at a considered "goods sold" within the meaning of this clause. The purchase price of goods plus the cost of labor in effecting their installation fixed or determinable future time a sum certain in dollars may be included in the amount for which the trade acceptance is drawn. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

NOVEMBER, 1020. FEDERAL RESERVE BULLETIN. 1181 nor is it enough that there be a contract providing merely and these regulations. Inasmuch as each individual acthat the proceeds of the acceptance will be used only to ceptance must itself conform to the terms of the law, no finance the purchase or shipment of goods to be exported renewal draft whether or not contracted for in advance, or imported. can be eligible if at the time of its acceptance the period (2) The shipment of goods within the United States, required for the conclusion of the transaction out of which provided shipping documents conveying security title the original draft was drawn shall have elapsed. The are attached at the time of acceptance, or question of the eligibility of renewal drafts, therefore, (3) The storage of readily marketable staples,1 provided must necessarily depend upon the stage of the transaction that the bill is secured at the time of acceptance by a at the time the renewal drafts are drawn. warehouse, terminal, or other similar receipt, conveying (d) Evidence of eligibility.—A Federal Reserve Bank security title to such staples, issued by a party independ- must be satisfied either by reference-to the acceptance ent of the customer, and provided further that the acceptor itself or otherwise that it is eligible for rediscount. The remains secured throughout the life of the acceptance. bill itself should be drawn so as to evidence the character In the event that the goods must be withdrawn from storage of the underlying transaction, but if it is not so drawn prior to the maturity of the acceptance or the retirement evidence of eligibility may consist of a stamp or certificate of the credit, a trust receipt or other similar document affixed by the acceptor in form satisfactory to the Federal covering the goods may be substituted in lieu of the Reserve Bank. original document, provided that such substitution is conditioned upon a reasonably prompt liquidation of the credit. In order to insure compliance with this condi- REGULATION B, SERIES OF 1920. tion, it should be required, when the original document is released, either (a) that the proceeds of the goods will (Superseding Regulation B of 1917.) be applied within a specified time toward a liquidation of the acceptance credit or (b) that a new document, similar OPEN-MARKET PURCHASES OF BILLS OF EXCHANGE. to the original one, will be resubstituted within a specified TRADE ACCEPTANCES, AND BANKERS' ACCEPTANCES time, and a Federal Reserve Bank may also rediscount any UNDER SECTION 14. bill drawn by a bank or banker in a foreign country or dependency or insular possession of the United States for the I. General statutory provisions. purpose of furnishing dollar exchange, as provided in Section 14 of the Federal Reserve Act provides that Regulation C, provided that it has a maturity at the time Federal Reserve Banks under rules and regulations to be of discount of not more than three months, exclusive of prescribed by the Federal Reserve Board may purchase days of grace. and sell in the open market, at home or abroad, from or to (c) General conditions.—(1) Acceptances in excess of 10 domestic or foreign banks, firms, corporations, or individper cent.—In order to be eligible, acceptances for any one uals, bankers' acceptances and bills of exchange of the customer in excess of 10 per cent of the capital and sur- kinds and maturities made eligible by the act for redisplus of the accepting bank must remain actually secured count, with or without the indorsement of a member bank. throughout the life of the acceptance. In the case of acceptances of member banks this security must consist II. General character of bills and acceptances eligible. of shipping documents, warehouse receipts or other such documents, or some other actual security growing out of the The Federal Reserve Board, exercising its statutory same transaction as the acceptance, such as documentary right to regulate the purchase of bills of exchange and acdrafts, trade acceptances, terminal receipts, or trust receptances, has determined that a bill of exchange or acceipts which cover goods of such a character as to insure ceptance to be eligible for purchase by Federal Reserve at all times a continuance of an effective and lawful lien Banks under this provision of section 14— in favor of the accepting bank. Other trust receipts are (a) Must conform to the relative requirements of Regunot security within the meaning of this paragraph if they lation A, except that a banker's acceptance growing out permit the customer to have access to or control over the of a transaction involving the storage within the United goods. States of goods which have been actually sold, may be (2) Maturity.-—Although a Federal Reserve Bank may purchased, provided that the acceptor is secured by the legally rediscount an acceptance having a maturity at the pledge of such goods and, provided further, that the bill time of discount of not more than three months, exclusive conforms in other respects to the relative requirements of of days of grace, it may decline to rediscount any accept- Regulation A. ance the maturity of which is in excess of the usual or (b) Must have a maturity at the time of purchase of not customary period of credit required to finance the undermore than 90 days, exclusive of days of grace, unless it is lying transaction or which is in excess of that period reaa bill drawn on a banker, when it may have a maturity of sonably necessary to finance such transaction. Since the three months, exclusive of days of grace. purpose of permitting the acceptance of drafts secured by. (c) Must have been accepted by the drawee prior to warehouse receipts or other such documents is to permit purchase by a Federal Reserve Bank unless it is either of the temporary holding of readily marketable staples in accompanied and secured by shipping documents or by storage pending a reasonably prompt sale, shipment, or a warehouse, terminal, or other similar receipt conveying distribution, no such acceptance should have a maturity security title or bears a satisfactory banking indorsement. in excess of the time ordinarily necessary to effect a reasonably prompt sale, shipment, or distribution into the process of manufacture or consumption. III. Statements. (3) Renewals.—While a national bank may properly A bill of exchange, unless indorsed by a member bank, enter into an agreement having more than six months to run by which it obligates itself to accept drafts of the kinds is not eligible for purchase until a satisfactory statement described in Regulation C, each individual draft accepted has been furnished of the financial condition of one or under the terms of that agreement must, in order to be more of the parties thereto. eligible, conform in all respects to the provisions of the law A bankers' acceptance, unless accepted or indorsed by a member bank, is not eligible for purchase until the acceptor has furnished a satisfactory statement of its financial iA readily marketable staple within the meaning of these regulations condition in form to be approved by the Federal Reserve may be defined as an article of commerce, agriculture, or industry of such uses as to make it the subject of constant dealings in ready markets Bank and has agreed in writing with a Federal Reserve with such frequent quotations of price as to make (a) the price easily Bank to inform it upon request concerning the transacand definitely ascertainable and (6) the staple itself easy to realize upon tion underlying the acceptance. by sale at anytime. 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1182 FEDERAL RESERVE BULLETIN. NOVEMBER, 1920. REGULATION C, SERIES OF 1920. B. ACCEPTANCE OF DRAFTS OR BILLS OF EXCHANGE DRAWN (Superseding Regulation C of 1917.) FOR THE PURPOSE OF CREATING DOLLAR EXCHANGE. ACCEPTANCE BY MEMBER BANKS OF DRAFTS AND BILLS I. Statutory provisions. OF EXCHANGE. Section 13 of the Federal Reserve Act also provides that A. ACCEPTANCE OF DRAFTS OR BILLS OF EXCHANGE DRAWN any member bank may accept drafts or bills of exchange AGAINST DOMESTIC OR FOREIGN SHIPMENTS OF GOODS drawn upon it having not more than three months' sight to OR SECURED BY WAREHOUSE RECEIPTS COVERING run, exclusive of days of grace, drawn, under regulations READILY MARKETABLE STAPLES. to be prescribed by the Federal Reserve Board, by banks or bankers in foreign countries or dependencies or insular I.. Statutory provisions. possessions of the United States for the purpose of furnish- Under the provisions of the fifth paragraph of section 13 ing dollar exchange as required by the usages of trade in the of the Federal Reserve Act, as amended by the acts of respective countries, dependencies, or insular possessions. September 7,1916, and June 21, 1917, any member bank No member bank shall accept such drafts or bills of may accept drafts or bills of exchange drawn upon it, exchange for any one bank to an amount exceeding in the having not more than six months' sight to run, exclusive aggregate 10 per centum of the paid-up and unimpaired of days of grace, which grow out of transactions involving capital and surplus of the accepting bank unless the draft the importation or exportation of goods; or which grow or bill of exchange is accompanied by documents conveyout of transactions involving the domestic shipment of ing or securing title or by some other adequate security. goods, provided shipping documents conveying or securing No member bank shall accept such drafts or bills in an title are attached at the time of acceptance; or which are amount exceeding at any time in the aggregate one-half secured at the time of acceptance by a warehouse receipt of its paid-up and unimpaired capital and surplus. This or other such document conveying or securing title cover- 50 per cent limit is seperate and distinct from and not ining readily marketable staples.x This paragraph limits the cluded in the limits placed upon the acceptance of drafts amount which any bank shall accept for any one person, and bills of exchange as described under section A of this company, firm, or corporation, whether in a foreign or domes- regulation. tic transaction, to an amount not exceeding at any time, in II. Regulations. the aggregate, more than 10 per centum of its paid-up and unimpaired capital stock and surplus. This limit, how- Any member bank desiring to accept drafts drawn by ever, does not apply in any case where the accepting bank banks or bankers in foreign countries or dependencies or remains secured either by attached documents or by some insular possessions of the United States for the purpose of other actual security growing out of the same transaction furnishing dollar exchange shall first make an application as the acceptance. A trust receipt which permits the to the Federal Reserve Board setting forth the usages of customer to have access to or control over the goods will trade in the respective countries, dependencies, or insular not be considered by Federal Reserve Banks to be " actual possessions in which such banks or bankers are located. security" within the meaning of section 13. A bill of If the Federal Reserve Board should determine that the lading draft, however, is "actual security" even after the usages of trade in such countries, dependencies, or possesdocuments have been released, provided that the draft is sions require the granting of the acceptance facilities applied accepted by the drawee upon or before the surrender of the for, it will notify the applying bank of its approval and documents. The law also provides that any bank may will also publish in the Federal Reserve Bulletin the accept such bills up to an amount not exceeding at any name or names of those countries, dependencies, or possestime, in the aggregate, more than one-half of its paid-up sions in which banks or bankers are authorized to draw on and unimpaired capital stock and surplus; or, with the member banks whose applications have been approved for approval of the Federal Reserve Board, up to an amount the purpose of furnishing dollar exchange. not exceeding at any time, in the aggregate, more than 100 The Federal Reserve Board reserves the right to modify per centum of its paid-up and unimpaired capital stock or on 90 days' notice to revoke its approval either as to any and surplus. In no event, however, shall the aggregate particular member bank or as to any foreign country or deamount of acceptances growing out of domestic transac- pendency or insular possession of the United States in tions exceed 50 per centum of such capital stock and sur- which it has authorized banks or bankers to draw on memplus. ber banks for the purpose of furnishing dollar exchange. II. Regulations. 1. Under the provisions of the law referred to above the REGULATION D, SERIES OF 1920. Federal Reserve Board has determined that any member bank, having an unimpaired surplus equal to at least 20 (Superseding Regulation D of 1917.) per centum of its paid-up capital, which desires to accept TIME DEPOSITS AND SAVINGS ACCOUNTS. drafts or bills of exchange drawn for the purposes described Section 19 of the Federal Reserve Act provides, in part, above, up to an amount not exceeding at any time, in the as follows: aggregate, 100 per centum of its paid-up and unimpaired Demand deposits, within the meaning of this act, shall capital stock and surplus, may file an application for that comprise all deposits payable within 30 days, and time purpose with the Federal Reserve Board. Such applicadeposits shall comprise all deposits- payable after 30 days, tion must be forwarded through the Federal Reserve Bank and all savings accounts and certificates of deposit which of the district in which the applying bank is located. are subject to not less than 30 days' notice before payment, 2. The Federal Reserve Bank shall report to the Federal and all postal savings deposits. Reserve Board upon the standing of the applying bank, stating whether the business and banking conditions pre- Time deposits, open accounts. vailing in its district warrant the granting of such applications. The term "time deposits, open accounts" shall be held 3. The approval of any such application may be re- to include all accounts, not evidenced by certificates of scinded upon 90 days' notice to the bank affected. deposit or savings pass books, in respect to which a written contract is entered into with the depositor at the time the deposit is made that neither the whole nor any part of such i A readily marketable staple within the meaning of these regulations may be denned as an article of commerce, agriculture, or industry of such deposit may be withdrawn by check or otherwise, except uses as to make it the subject of constant dealings in ready markets with on a given date or on written notice which must be given such frequent quotations of price as to make (a) the price easily and by the depositor a certain specified number of days in definitely ascertainable and (6) the staple itself easy to realize upon by sale at ajiy time. advance, in no case less than 30 days. 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NOVEMBER, 1920. FEDERAL RESERVE BULLETIN. 1183 Savings accounts. (c) They are issued by a municipality— (1) Which has been in existence 1 for a period of 10 The term "savings accounts" shall be held to include years; those accounts of the bank in respect to which, by its (2) Which for a period of 10 years previous to the purprinted regulations, accepted by the depositor at the time chase has not defaulted 2 for longer than 15 days in the the account is opened— payment of any part of either principal or interest of any (a) The pass book, certificate, or other similar form of funded debt authorized to be contracted by it: receipt must be presented to the bank whenever a deposit (3) Whose net funded indebtedness 1 does not exceed or withdrawal is made, and 10 per centum of the valuation of its taxable property, to (6) The depositor may at any time be required by the be ascertained by the last preceding valuation of property bank to give notice of an intended withdrawal not less than for the assessment of taxes. 30 days before a withdrawal is made. II. Except with the approval of the Federal Reserve Board, no Federal Reserve Bank shall purchase and hold Time certificates of deposit. an amount in excess of 25 per centum of the total amount of warrants outstanding at any time and issued in con- A "time certificate of deposit" is defined as an instru- formity with provisions of section 14 (6) above quoted, ment evidencing the deposit with a bank, either with or and actually sold by a municipality. without interest, of a certain sum specified on the face of III. Except with the approval of the Federal Reserve the certificate payable in whole or in part to the depositor Board, the aggregate amount invested by any Federal or on his order— Reserve Bank in warrants of all kinds shall not exceed at (a) On a certain date, specified on the certificate, not the time of purchase a sum equal to 10 per centum of the less than 30 days after the date of the deposit, or deposits kept by its member banks with such Federal (b) After the lapse of a certain specified time subsequent Reserve Bank. to the date of the certificate, in no case less than 30 days, or IV. Except with the approval of the Federal Reserve (c) Upon written notice, which the bank may at its option Board, the maximum amount which may be invested at require to be given a certain specified number of days, not the time of purchase by any Federal Reserve Bank in less than 30 days, before the date of repayment, and warrants of any single municipality shall be limited to the (d) In all cases only upon presentation of the certificate following percentages of the deposits kept in such Federal at each withdrawal for proper indorsement or surrender. Reserve Bank by its member banks: Five per centum of such deposits in warrants of a municipality of 50,000 population or over; Three per centum of such deposits in warrants of a REGULATION E, SERIES OF 1920. municipality of over 30,000 population, but less than 50,000; (Superseding Regulation E of 1917.) One per centum of such deposits in warrants of a municipality of over 10,000 population, but less than 30,000. PURCHASE OP WARRANTS. V. Warrants of a municipality of 10,000 population or Statutory requirements. less shall be purchased only with the special approval of the Board. Section 14 of the Federal Reserve Act reads in part as The population of a municipality shall be determined follows: by the last Federal or State census. Where it can not be Every Federal Reserve Bank shall have power— exactly determined the Board will make special rulings. (6) To buy and sell, at home or abroad, bonds and notes of the United VI. Opinion of recognized counsel on municipal issues States, and bills, notes, revenue bonds, and warrants with a maturity from date of purchase of mt exceeding six months, issued in anticipation or of the regularly appointed counsel of the municipality of the collection of taxes or in anticipation of the reseipt of assured reve-as to the legality of the issue shall be secured and approved nues by any State, county, district, political subdivision, or munici- in each case by counsel for the Federal Reserve Bank. pality in the continental United States, including irrigation, drainage, and reclamation districts, such purchases to be made in accordance with VII. Any Federal Reserve Bank may purchase from rules and regulations prescribed by the Federal Reserve Board. any of its member banks warrants of any municipality, indorsed by such member bank, with waiver of demand, For brevity's sake, the term "warrant" when used in notice, and protest, up to an amount not to exceed 10 per this regulation shall be construed to mean "bills, notes, centum of the aggregate capital and surplus of such memrevenue bonds, and warrants with a maturity from date of ber bank: Provided, however, That such warrants comply purchase of not exceeding six months," and the term with provisions I and III of these regulations, except that "municipality" shall be construed to mean "State, where a period of 10 years is mentioned in I (c) hereof a county, district, political subdivision, or municipality in period of 5 years shall be substituted for the purposes of the continental United States, including irrigation, drainthis clause. age, and reclamation districts." APPENDIX TO REGULATION E. Regulation. '' Net funded indebtedness.'' I. Any Federal Reserve Bank may purchase warrants The term "net funded indebtedness" is hereby defined issued by a municipality in anticipation of the collection to mean the legal gross indebtedness of the municipality of taxes or in anticipation of the receipt of assured reve- (including the amount of any school district or other bonds nues, provided— which depend for their redemption upon taxes levied (a) They are the general obligations of the entire mu- upon property within the municipality) less the aggregate nicipality; it being intended to exclude as ineligible for of the following items: purchase all such obligations as are payable from "local (1) The amount of outstanding bonds or other debt oblibenefit" and "special assessment" taxes when the munici- gations made payable from current revenues; pality at large is not directly or ultimately liable; (2) The amount of outstanding bonds issued for the pur- (b) They are issued in anticipation of taxes or revenues pose of providing the inhabitants of a municipality with which are due and payable on or before the date of maturity public utilities, such as waterworks, docks, electric plants, of such warrants; but the Federal Reserve Board may transportation facilities, etc.: Provided, That evidence is waive this condition in specific cases. For the purposes submitted showing that the income from such utilities is of this regulation, taxes shall be considered as due and pay- sufficient for maintenance, for payment of interest on such able on the last day on which they may be paid without penalty; See appendix to this regulation. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1184 FEDERAL RESERVE BULLETIN". NOVEMBER, 1920. bonds, and for the accumulation of a sinking fund for their executor, administrator, registrar of stocks and bonds, guardian of estates, redemption; assignee, receiver, committee of estates of lunatics, or in any other fiduciary capacity in which State banks, trust companies, or other corpora- (3) The amount of outstanding improvement bonds, tions which come into competition with national banks are permitted issued under laws which provide for the levying of special to act under the laws of the State in which the national bank is located. assessments against abutting property in amounts suffi- Whenever the laws of such State authorize or permit the exercise of any or all of the foregoing powers by State banks, trust companies, or cient to insure the payment of interest on the bonds and other corporations which compete with national banks, the granting to the redemption thereof: Provided, That such bonds are and the exercise of such powers by national banks shall not be deemed direct obligations of the municipality and included in the to be in contravention of State or local law within the meaning of this act. gross indebtedness of the municipality; National banks exercising any or all of the powers enumerated in this (4) The total of all sinking funds accumulated for the subsection shall segregate all assets held in any fiduciary capacity from redemption of the gross indebtedness of the municipality, the general assets of the bank and shall keep a separate set of books and records showing in proper detail all transactions engaged in under authorexcept sinking funds applicable to bonds just described in ity of this subsection. Such books and records shall be open to inspec- (1), (2), and (3) above. tion by the State authorities to the same extent as the books and records of corporations organized under State law which exercise fiduciary pow- '' Existence'' and '' Nondefault.'' ers, but nothing in this act shall be construed as authorizing the State authorities to examine the books, records, and assets of the national Warrants will be construed to comply with that part of bank which are not held in trust under authority of this subsection. No national bank shall receive in its trust department deposits of cur- I (c) of Regulation E relative to term of existence and rent funds subject to check or the deposit of checks, drafts, bills of exnondefault, under the following conditions: change, or other items for collection or exchange purposes. Funds (1) Warrants issued by or in behalf of any municipality deposited or held in trust by the bank awaiting investment shall be carried in a separate account and shall not be used by the bank in the which was, subsequent to the issuance of such warrants, conduct of its business unless it shall first set aside in the trust departconsolidated with or merged into an existing political ment United States bonds or other securities approved by the Federal division which meets the requirements of these regulations, Reserve Board. will be deemed to be the warrants of such political division: In the event of the failure of such bank the owners of the funds held in trust for investment shall have a lien on the bonds or other securities so Provided, That such warrants were assumed by such set apart in addition to their claim against the estate of the bank. political division under statutes and appropriate proceed- Whenever the laws of a State require corporations acting in a fiduciary ings the effect of which is to make such warrants general capacity to deposit securities with the State authorities for the protection of private or court trusts, national banks so acting shall be required obligations of such assuming political division and payable, to mate similar deposits and securities so deposited shall be held for the either directly or ultimately, without limitation to a special protection of private or court trusts, as provided by the State law. fund from the proceeds of taxes levied upon all the taxable National banks in such cases shall not be required to execute the bond usually required of individuals if State corporations under similar cirreal and personal property within its territorial limits. cumstances are exempt from this requirement. (2) Warrants issued by or in behalf of any municipality National banks shall have power to execute such bond when so rewhich was, subsequent to the issuance of such warrants, quired by the laws of the State. In any case in which the laws of a State require that a corporation wholly succeeded by a newly organized political division acting as trustee, executor, administrator, or in any capacity specified whose term of existence, added to that of such original in tnis section, shall tase an oath or make an affidavit, the president, political division or of any other political division so suc- vice president, cashier, or trust officer of such national bank may take the necessary oath or execute the necessary affidavit. ceeded, is equal to a period of 10 years, will be deemed to It shall be unlawful for any national banting association to lend any be warrants of such succeeding political division: Provided, officer, director, or employee any funds held in trust under the powers That during such period none of such political divisions conferred by this section. Any officer, director, or employee making sucn loan, or to whom such loan is made, may be fined not more than shall have defaulted for a period exceeding 15 days in the $5,000 or imprisoned not more than five years, or may be both fined and payment of any part of either principal or interest of any imprisoned, in the discretion of the court. funded debt authorized to be contracted by it: And pro- hi passing upon applications for permission to exercise the powers enumerated in this subsection, the Federal Reserve Board may take vided further, That such warrants were assumed by such into consideration the amount of capital and surplus of the applying new political division under statutes and appropriate pro- bank wnetner or not such capital and surplus is sufficient under tne circeedings the effect of which is to make such warrants gen- cumstances of the case, the needs of the community to be served, any eral obligations of such assuming political division and and other facts and circumstances that seem to it proper, and may grant or refuse tne application accordingly: Provided, Tnat no permit shall be payable, either directly or ultimately, without limitation issued to any national banKing association having a capital and surplus to a special fund from the proceeds of taxes levied upon less than tne capital and surplus required by State law of State banks, all the taxable real and personal property within its terri- trust companies, and corporations exercising such powers. torial limits. II. Applications. (3) Warrants issued by or in behalf of any municipality which, prior to such issuance, became the successor of one A national bank desiring to exercise any or all of the or more, or was formed by the consolidation or merger of powers authorized by section 11 (k) of the Federal Reserve two or more, preexisting political divisions, the term of Act, as amended by the act of September 26, 1918, shall existence of one or more of which, added to that of such make application to the Federal Reserve Board, on a succeeding or consolidated political division, is equal to a form approved by said Board, for a special permit authorperiod of 10 years, will be deemed to be warrants of a politiizing it to exercise such powers. In the case of an original cal division which has been in existence for a period of 10 application—that is, where the applying bank has never years: Provided, That during such period none of such been granted the right to exercise any of the powers original, succeeding, or consolidated political divisions shall have defaulted for a period exceeding 15 days in the authorized by section 11 (k)—the application should be payment of any part of either principal or interest of any made on F. R. B. Form 61. In the case of a supplemental funded debt authorized to be contracted by it. application—that is, where the applying bank has already been granted the right to exercise one or more of the powers authorized by section 11 (k)—the application should be made on F. R. B. Form 61-b. Both forms are REGULATION F, SERIES OF 1920. made a part of this regulation and may be obtained irom (Superseding Regulation F of 1919.) the Federal Reserve Board or any Federal Reserve Bank. TRUST POWERS OP NATIONAL BANKS. I. Statutory provisions. III. Separate departments. The Federal Reserve Act as amended by the act of Sep- Every national bank permitted to act under this section tember 26, 1918, provides in part: shall establish a separate trust department, and shall place SEC. 11. The Federal Reserve Board shall be authorized and empow- such department under the management of an officer or ered: officers, whose duties shall be prescribed by the board of (k) To grant by special permit to national banks applying therefor, when not in contravention of State or local law, the right to act as trustee, directors of the bank. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

NOVEMBER, 1920. FEDERAL RESERVE BULLETIN. 1185 IV. Custody of trust securities and investments. X. Revocation of permits. The securities and investments held in each trust shall The Federal Reserve Board reserves the right to revoke be kept separate and distinct frpm the securities owned permits granted under the provisions of section 11 (k), by the bank and separate and distinct one from another. as amended, in any case where in the opinion of the Board Trust securities and investments shall be placed in the a bank has willfully violated the provisions of the Federal joint custody of two or more officers or other employees Reserve Act or of these regulations or the laws of any State designated by the board of directors of the bank and all relating to the operations of such bank when acting in any such officers and employees shall be bonded. of the capacities permitted under the provisions of section 11 (k), as amended. V. Deposit of funds awaiting investment or distribution. Funds received or held in the trust department of a XI. Changes in regulations. national bank awaiting investment or distribution may be deposited in the commercial department of the bank to the These regulations are subject to change by the Federal credit of the trust department, provided that the bank Reserve Board; provided, however, that no such change first delivers to the trust department, as collateral security, shall prejudice any obligation undertaken in good faith United States bonds, or other readily marketable securities under regulations in effect at the time the obligation was owned by the bank, which collateral security shall at all assumed. times be equal in market value to the amount of the funds so deposited. VI. Investment of trust funds. REGULATION G, SERIES OF 1920. (a) Private trusts.—Funds held in trust must be invested (Superseding Regulation G of 1917.) in strict accordance with the terms of the will, deed, or other instrument creating the trust. Where the instru- LOANS ON FARM LAND AND OTHER REAL ESTATE. ment creating the trust contains provisions authorizing Section 24 of the Federal Reserve Act provides in part the bank, its officers, or its directors to exercise their disthat— cretion in the matter of investments, funds held in trust may be invested only in those classes of securities which Any national banking association not situated in a central reserve city inay make loans secured by improved and unencumbered farm are approved by the directors of the bank. Where the land situated within its Federal reserve district or within a radius of instrument creating the trust does not specify the character one hundred miles of the place in which such bank is located^ irrespecor class of investments to be made and does not expressly tive of district lines, and may also make 1 oans secured by improved and unencumbered real estate located within one hundred miles of vest in the bank, its officers, or its directors a discretion in the place in which such bank is located, irrespeoti e of district lines; the matter of investments, funds held in trust shall be but no loan made upon the security of such farm land shall be made invested in any securities in which corporate or individual for a longer time than five years, and no loan made upon the security of such real estate as distinguished from farm land shall be made for a fiduciaries in the State in which the bank is located may longer time than one year nor shall the amount of any such loan, whether lawfully invest. upon such farm land or upon such real estate, exceed fifty per centum (b) Court trusts.—Except as hereinafter provided, a of the actual value of the property offered as security. Any such bank may make such loans, whether secured by such farm land or such real national bank acting as executor, administrator, or in any estate, in an aggregate sum equal to twenty-five per centum of its capital other fiduciary capacity, under appointment by a court of and surplus or to one-third of its time deposits and such banks may competent jurisdiction, shall make all investments under continue hereafter as heretofore to receive time deposits and to pay interest on the same. an order of that court, and copies of all such orders shall be filed and preserved with the records of the trust depart- National banks not located in central reserve cities ment of the bank. If the court by general order vests may, therefore, legally make loans secured by improved a discretion in the national bank to invest funds held in and unencumbered farm land or other real estate as protrust, or if under the laws of the State in which the bank is vided by this section. located corporate fiduciaries appointed by the court are Certain conditions and restrictions must, however, be permitted to exercise such discretion, the national bank observed—• so appointed may invest such funds in any securities in (a) There must be no prior lien on the land; that is, the which corporate or individual fiduciaries in the State lending bank must hold an absolute first mortgage or in which the bank is located may lawfully invest. deed of trust. (b) The amount of the loan must not exceed 50 per cent VII. Boohs and accounts. of the actual value of the land by which it is secured. All books and records of the trust department shall be (c) The maximum amount of loans which a national kept separate and distinct from other books and records of bank may make on real estate, whether on farm land or the bank. All accounts opened shall be so kept as to on other real estate as distinguished from farm land, is enable the national bank at any time to furnish information limited under the terms of the act to an amount not in or reports required by the Federal or State authorities, and excess of one-third of its time deposits at the time of the such books and records shall be open to the inspection of making of the loan, and not in excess of one-third of its such authorities. average time deposits during the preceding calendar VIII. Examinations. year: Provided, however, That if one-third of such time deposits as of the date of making the loan or one-third of Examiners appointed by the Comptroller of the Cur- the average time deposits for the preceding calendar rency or designated by the Federal Reserve Board will be year is less than one-fourth of the capital and surplus of instructed to make thorough and complete audits of the the bank as of the date of making the loan, the bank in cash, securities, accounts, and investments of the trust such event shall have authority to make loans upon real department of the bank at the same time that examination estate under the terms of the act to the extent of oneis made of the banking department. fourth of the bank's capital and surplus as of that date. (d) Farm land to be eligible as security for a loan by a IX. Conformity with State laws. national bank must be situated within the Federal reserve Nothing in these regulations shall be construed to give district in which such bank is located o.r within a radius a national bank exercising the powers permitted under the of 100 miles of such bank irrespective of district lines. provisions of section 11 (k) of the Federal Reserve Act, as (e) Real estate as distinguished from farm land to be amended, any rights or privileges in contravention of the eligible as security for a loan by a national bank must be laws of the State in which the bank is located within the located within a radius of 100 miles of such bank irrespecmeaning of that act. tive of district lines. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1186 FEDERAL RESERVE BULLETIN. NOVEMBER, 1920, (/) The right of a national bank to "make loans" under IV. Approval of application. section 24 includes the right to purchase or discount loans already made as well as the right to make such loans in In passing upon an application the Federal Reserve the first instance: Provided, however. That no loan securedBoard will consider especially— by farm land shall have a maturity of more than five 1. The financial condition of the applying bank or trust years from the date on which it was purchased or made company and the general character of its management. by the national bank and that no loan secured by other 2. Whether the corporate powers exercised by the applyreal estate shall have a maturity of more than one year ing bank or trust company are consistent with the purposes from such date. of the Federal Reserve Act. {(]) Though no national bank is authorized under the 3. Whether the laws of the State or district in which the provisions of section 24 to make a loan on the security of applying bank or trust company is located contain proreal estate, other than farm land, for a period exceeding visions likely to prevent proper compliance with the proone year, nevertheless, at the end of the year, it may visions of the Federal Reserve Act and the regulations of properly make a new loan upon the same security for a the Federal Reserve Board made in conformity therewith. period not exceeding one year. The maturing note If in the judgment of the Federal Reserve Board an must be canceled and a new note taken in its place, but applying bank or trust company conforms to all the rein order to obviate the necessity of making a new mortgage quirements of the Federal Reserve Act and these regulaor deed of trust for each renewal, the original mortgage tions, and is otherwise qualified for membership, the or deed of trust may be so drawn in the first instance as to Board will issue a certificate of approval subject to such cover possible future renewals of the original note. Under conditions as it may deem necessary to insure compliance no circumstances, however, must the bank obligate itself with the act and these regulations. When the conditions in advance to make such a renewal. It must, in all imposed by the Board have been accepted by the applying cases, preserve the right to require payment at the end bank or trust company the Board will issue a certificate of of the year and to foreclose the mortgage should that action approval, whereupon the applying bank or trust company become necessary. The same principles apply to loans shall make a payment to the Federal Reserve Bank of its of longer maturities secured by farm lands. district of one-half of the amount of its subscription, i. e., (h) In order that real estate loans held by a bank may 3 per cent of the amount of its paid-up capital and surplus be readily classified, a statement signed by the officers and upon receipt of this payment the appropriate certifimaking a loan and having knowledge of the facts upon cate of stock will be issued by the Federal Reserve Bank. which it is based must be attached to each note secured The remaining half of the subscription of the applying by a first mortgage on the land by which the loan is secured, bank or trust company shall be subject to call when certifying in detail as of the date of the loan that all of the deemed necessary by the Federal Reserve Board. requirements of law have been duly observed. V. Powers and restrictions. Every State bank or trust company while a member of REGULATION H, SERIES OF 1920. the Federal Reserve System— 1. ShaH retain its full charter and statutory rights as a (Superseding Regulation H of 1917.) State bank or trust company, subject to the provisions of the Federal Reserve Act and to the regulations of MEMBERSHIP OF STATE BANKS AND TRUST COMPANIES. the Federal Reserve Board, including any conditions em- I. Statutory requirements. bodied in the certificate of approval. 2. Shall maintain such improvements and changes in •Section 9 of the Federal Reserve Act, as amended by the its banking practice as may have been specifically react approved June 21, 1917, which authorizes State banks quired of it by the Federal Reserve Board as a condition and trust companies to become members of the Federal of its admission and shall not lower the standard of bank- Reserve System, is quoted in the appendix to this regula- ing then required of it; and tion. 3. Shall enjoy all the privileges and observe all those II. Banks eligible for membership. requirements of the Federal Reserve Act and of the regulations of the Federal Reserve Board made in conformity A State bank or a trust company to be eligible for mem- therewith which are applicable to State banks and trust bership in a Federal Reserve Bank must comply with the companies which have become member banks. following conditions: 1. It must have been incorporated under a special or VI. Examinations and reports. general law of the State or district in which it is located. 2. It must have a minimum paid-up unimpaired capital Every State bank or trust company, while a member of stock as follows: the Federal Reserve System, shall be subject to examina- In cities or towns not exceeding 3,000 inhabitants, tions made by direction of the Federal Reserve Board or $25,000. of the Federal Reserve Bank by examiners selected or In cities or towns exceeding 3,000 but not exceeding 6,000 inhabitants, $50,000. approved by the Federal Reserve Board. In order to avoid duplication, examinations of State In cities or towns exceeding 6,000 but not exceeding 50,000 inhabitants, $100,000. banks and trust companies made by State authorities will be accepted in lieu of examinations by examiners selected In cities exceeding 50,000 inhabitants, $200,000. or approved by the Board wherever these are satisfactory to the directors of the Federal Reserve Bank and where, III. Application for membership. in addition, satisfactory arrangements for cooperation Any eligible State bank or trust company may make in the matter of examination between the designated exapplication on F. R. B. Form 83a, made a part of this aminers of the Board and those of the States already regulation, to the Federal Reserve Board for an amount exist or can be effected with State authorities. Examiof capital stock in the Federal Reserve Bank of its district ners from the staff of the board or of the Federal Reserve equal to 6 per cent of the paid-up capital stock and surplus Banks will, whenever desirable, be designated by the of such State bank or trust company. This application Board to act with the examination staff of the State in must be forwarded direct to the Federal Reserve Agent of order that uniformity in the standard of examination may the district in which the applying bank or trust company be assured. is located and must be accompanied by Exhibits I, II, and Every State bank or trust company, while a member III, referred to on page 1 of the application blank. of the Federal Reserve System, shall be required to make Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

NOVEMBER, 1920. FEDERAL RESERVE BULLETIN. 1187 in each year not less than three reports of condition on No applying bank shall be admitted to membership in a Federal F. R. B. Form 105. Such reports shall be made to the Reserve Bank unless it possesses a paid-up unimpaired capital sufficient to entitle it to become a national banking association in the place Federal Reserve Bank of its district on call of such bank, where it is situated under the provisions of the national bank act. on dates to be fixed by the Federal Reserve Board. They Banks becoming members of the Federal Reserve System under shall also make semiannual reports of earnings and divi- authority of this section shall be subject to the provisions of this section and to those of this act which relate specifically to member banks, but dends on F. R. B. Form 107. As dividends may be shall not be subject to examination under the provisions of the first two declared from time to time, each State bank or trust paragraphs of section fifty-two hundred and forty of the Revised Statcompany member shall also furnish to the Federal Reserve utes as amended by section twenty-one of this act. Subject to the provisions of this act and to the regulations of the board made pursuant Bank of its district a special notification of dividend thereto, any bank becoming a member of the Federal Reserve. System declared on F. R. B. Form 107a. F. R. B. Forms 105, shall retain its full charter and statutory rights as a State bank'or trust 107, and 107a are made a part of this regulation. company, and may continue to exercise all corporate powers granted it by the State in which it was created, and shall be entitled to all privileges of member banks: Provided, however, That no Federal Reserve Bank shall be permitted to discount for any State bank or trust company APPENDIX TO REGULATION H. notes, drafts, or bills of exchange of any one borrower who is liable for borrowed money to such State bank or trust company in an amount Section 9 of the Federal Reserve Act as amended by greater than ten per centum of the capital and surplus of such State bank or trust company, but the discount of bills of exchange drawn the act approved June 21, 1917, provides that: against actually existing value and the discount of commercial or busi- Any bank incorporated by special law of any State, or organized ness paper actually owned by the person negotiating the same shall under the general laws of any State, or of the United States, desiring to not be considered as borrowed money within the meaning of this secbecome a member of the Federal Reserve System, may make applica- tion The Federal Reserve Bank, as a condition of the discount of tion to the Federal Reserve Board, under such rules and regulations as notes, drafts, and bills of exchange for such State bank or trust company, it may prescribe, for the right to subscribe to the stock of the Federal shall require a certificate or guaranty to the effect that the borrower is Reserve Bank organized within the district in which the applying bank not liable to such bank in excess of the amount provided by this section, is located. Such application shall be for the same amount of stock that and will not be permitted to become liable in excess of "this amount the applying bank would be required to subscribe to as a national bank. while such notes, drafts, or bills of exchange are under discount with The Federal Reserve Board, subject to such conditions as it may pre- the Federal Reserve Bank. scribe, may permit the applying bank to become a stockholder of such It shall be unlawful for any officer, clerk, or agent of any bank admitted Federal Reserve Bank. to membership under authority of this section to certify any check In acting upon such applications the Federal Reserve Board shall drawn upon such bank unless the person or company drawing the consider the financialc ondition of the applying bank, the general char- check has on deposit therewith at the time such check is certified an acter of its management, and whether or not the corporate powers amount of money equal to the amount specified in such check. Any exercised are consistent with the purposes of this act. check so certified by duly authorized officers shall be a good and valid Whenever the Federal Reserve Board shall permit the applying bank obligation against such bank, but the act of any such officer, clerk, or to become a stockholder in the Federal Reserve Bank of the district its agent m violation of this section may subject such bank to a forfeiture stock subscription shall be payable on call of the Federal Reserve Board, of its membership in the Federal Reserve System upon hearing by the and stock issued to it shall be held subject to the provisions of this act. Federal Reserve Board. All banks admitted to membership under authority of this section shall be required to comply with the reserve and captial requirements of this act and to conform to those provisions of law imposed on national REGULATION I, SERIES OF 1920. banks which prohibit such banks from lending on or purchasing their own stock, which relate to the withdrawal or impairment of their capital (Superseding Regulation I of 1917.) stock, and which relate to the payment of unearned dividends. Such banks and the officers, agents, and employees thereof shall also be sub- INCREASE OR DECREASE OF CAPITAL STOCK OF FEDERAL ject to the provisions of and to the penalties prescribed by section fifty- RESERVE BANKS AND CANCELLATION OF OLD AND two hundred and nine of the Revised Statutes, and shall "be required to ISSUE OF NEW STOCK CERTIFICATES. make reports of condition and of the payment of dividends to the Federal Reserve Bank of which they become a member. Not less than three of I. Increase of capital stock. such reports shall be made annually on call of the Federal Reserve Bank on dates to be fixed by the Federal Reserve Board. Failure to make 1. New national banks.—Each newly organized national such reports within ten days after the date they are called for shall subject the offending bank to a penalty of $100 a day for each day that it bank (including any nonmember State bank which shall fails to transmit such report; such penalty to be collected by the Federal have converted into a national bank)1 shall file with the Reserve Bank by suit or otherwise. Federal Reserve Bank of its district an application on As a condition of membership such banks shall likewise be subject to F. R. B. Form 30, made a part of this regulation, for an examinations made by direction of the Federal Reserve Board or of the Federal Reserve Bank by examiners selected or approved by theamount of capital stock of the Federal Reserve Bank of its Federal Reserve Board. district equal to 6 per cent of the paid-up capital stock Whenever the directors of the Federal Reserve Bank shall approve and surplus of such national bank. When such applicathe examinations made by the State authorities, such examinations and tion has been approved by the Federal Reserve agent and the reports thereof may be accepted in lieu of examinations made by examiners selected or approved by the Federal Reserve Board: Pro-by the Federal Reserve Board, the applying national vided., however, That when it deems it necessary the board may ordberank shall make a payment to the Federal Reserve Bank special examinations by examiners of its own selection and shall in allof its district of one-half of the amount of its subscription, cases approve the form of report. The expenses of all examinations, other than those made by State authorities, shall be assessed against i. e., 3 per cent of the amount of its paid-up capital and and paid by the banks examined. surplus, and upon receipt of this payment the appropriate Tf at any time it shall appear to the Federal Reserve Board that a certificate of stock shall be issued by the Federal Reserve member bank has failed to comply with the provisions of this section or the regulations of the Federal Reserve Board made pursuant thereto, Bank. The remaining half of the subscription of the it shall be within the power of the board after hearing to require such applying bank shall be subject to call when deemed bank to surrender its stock in the Federal Reserve Bank and to forfeit necessary by the Federal Reserve Board. all rights and privileges of membership. The Federal Reserve Board may restore membership upon due proof of compliance with the con- 2. State banks becoming members.—Any State bank or ditions imposed by this section. trust company desiring to become a member of the Federal Any State bank or trust company desiring to withdraw from member- Reserve System shall make application as provided in ship in a Federal Reserve Bank may do so, after six months' written notice shall have been filed with the Federal Reserve Board, upon Regulation H, and when such application has been apthe surrender and cancellation of all of its holdings of capital stock in theproved by the Federal Reserve Board and all require- Federal Reserve Bank: Provided, however, That no Federal Reservmeents of Regulation H have been complied with the Fed- Bank shall, except under express authority of the Federal Reserve Board, cancel within the same calendar year more than twenty-five eral Reserve Bank shall issue an appropriate certificate of per centum of its capital stock for the purpose of effecting voluntary stock as provided in Regulation H. withdrawals during that year. All such applications shall be dealt wi W th h i e n n e th v e e r o a rd m er e i m n b w er h i b c a h n t k h e sh y a a ll r e s f u i r l r e en d d w e i r t h it s th s e to b c o k a h rd o . ldings in a Fed- 1 Whenever any State member bank is converted into a national bank eral Reserve Bank, or shall be ordered to do so by the Federal Reserve under section 5154 of the Revised Statutes, as amended by section 8 of Board, under authority of law, all of its rights and privileges as a mem- the Federal Reserve Act, it may continue to hold as a national bank its ber bank shall thereupon cease and determine, and after due provision shares of Federal Reserve Bank stock previously held as a State bank, has been made for any indebtedness due or to become due to the Fed- and need not file any application for Federal Reserve Bank stock, uneral Reserve Bank it shall be entitled to a refund of its cash paid sub- less the aggregate amount of its capital and surplus is increased, in which scription with interest at the rate of one-half of one per centum per monthevent it should file an application for additional stock, as provided in from date of last dividend, if earned, the amount refunded in no event paragraph III. The certificate of stock issued in the old name of the to exceed the book value of the stock at that time, and shall likewise member bank, however, should be surrendered and canceled, and a be entitled to repayment of deposits and of any other balance due from new certificate should be issued in lieu thereof, in the new name of the the Federal Reserve Bank. member bank, as provided in the last paragraph of this regulation. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1188 FEDERAL. RESERVE BULLETIN. NOVEMBER, 1920. 3. Increase of capital or surplus by member banks.— 2. Insolvency of member bank.—Whenever a member Whenever any member bank shall increase the aggregate bank shall be declared insolvent and a receiver appointed amount of its paid-up capital stock and surplus, it shall by the proper authorities, such receiver shall file with the file with the Federal Reserve Bank of which it is a member Federal Reserve Bank of which the insolvent bank is a an application on F. R. B Form 56, made a part of this member an application on F. R. B. Form 87, which is regulation, for an additional amount of the capital stock made a part of this regulation, for the surrender and canof the Federal Reserve Bank of its district equal to 6 per cellation of the stock held by such insolvent member bank, cent of such increase. After such application has been and for the refund of all balances due to it. Upon approval approved by the Federal Reserve agent and by the Fed- of this application by the Federal Reserve agent and the eral Reserve Board, the applying member bank shall pay Federal Reserve Board, the Federal Reserve Bank shall to the Federal Reserve Bank of its district one-half of the accept and cancel the stock surrendered, and shall adjust amount of its additional subscription, and when this accounts between the member bank and the Federal amount has been paid the appropriate certificate of stock Reserve Bank by applying to any indebtedness of the shall be issued by the Federal Reserve Bank. The re- insolvent member bank to such Federal Reserve Bank maining half of such additional subscription shall be sub- all cash-paid subscriptions made by it on the stock canject to call when deemed necessary by the Federal Re- celed with one-half of 1 per centum per month from the serve Board. period of last dividend, if earned, not to exceed the book 4. Consolidation of member banks.—Whenever two or value thereof, and the balance, if any, shall be paid to the more member banks consolidate and such consolidation duly authorized receiver of such insolvent member bank. results in the consolidated bank acquiring by operation 3. Voluntary liquidation of member bank.—Wnenever a of law 2 the Federal Reserve Bank stock owned by the member bank goes into voluntary liquidation and a other consolidating bank or banks, and which also re- liquidating agent is appointed, such agent shall file with sults in the consolidated bank having an aggregate capital the Federal Reserve Bank of which it is a member an and surplus in excess of the aggregate capital and sur- application on F. R. B. Form 86, which is made a part of plus of the consolidating member banks, such consoli- this regulation, for the surrender and cancellation of the dated bank shall file an application for additional stock, stock held by and for the refund of all balances due to such as provided in the preceding paragraph. liquidating member bank. Upon approval of this appli- 5. Certifying increases of Federal Reserve Bank stock.— cation by the Federal Reserve agent and the Federal Whenever the capital stock of any Federal Reserve Bank Reserve Board, the Federal Reserve Bank shall accept shall be increased the board of directors of such Federal and cancel the stock surrendered, and shall adjust accounts Reserve Bank shall certify such increase to the Comptroller between the liquidating member bank and the Federal of the Currency on F. R. B. Form 58, which is made a Reserve Bank by applying to the indebtedness of the part of this regulation. Such certifications shall be made liquidating member bank to such Federal Reserve Bank quarterly as of the last days of December, March, June, all cash-paid subscriptions made by it on the stock canand September of each year. A duplicate copy of each celed with one-half of 1 per centum per month from the certificate shall be forwarded to the Federal Reserve period of last dividend, if earned, not to exceed the book Board. value thereof, and the balance, if any, shall be paid to the II. Decrease of capital stock. duly authorized liquidating agent of such liquidating member bank. 1. Reduction of capital or surplus by member bank.— 4. Consolidation of member bank.—Whenever there is a Whenever a member bank reduces the aggregate amount consolidation of two or more member banks which results of its paid-up capital stock and surplus and, in the case of in the consolidated bank acquiring by operation of law reduction of the paid-up capital of a national bank, such (see note 2) the Federal Reserve Bank stock owned reduction has been approved by the Comptroller of the by the other consolidating banks, and which also results Currency and by the Federal Reserve Board in accordance in the consolidated bank having a paid-up capital and surwith the provisions of section 28 of the Federal Reserve plus less than the aggregate paid-up capital and surplus Act, it shall file with the Federal Reserve Bank of which of the consolidating member banks, the consolidated bank it is a member an application for the surrender and can- shall file with the Federal Reserve Bank of which it is a cellation of stock on F. R. B. Form 60, which is made a member an application for the surrender and cancellation part of this regulation. When this application has been of stock on F. R. B. Form 60a, which is made a part of this approved by the Federal Reserve agent and the Federal regulation. Upon the approval of this application by the Reserve Board, the Federal Reserve Bank shall accept Federal Reserve agent and the Federal Reserve Board, and cancel the stock which the applying bank is entitled the Federal Reserve Bank shall accept and cancel the to surrender and shall refund to the member bank the stock which the applying bank is entitled to surrender, proportionate amount due such bank on account of the and shall refund to the applying bank the proportionate stock canceled. amount due such bank on account of the stock canceled. 5. Certifying reductions of Federal Reserve Bank stock.— 2 Section 5 of the Federal Reserve Act provides that "Shares of the All reductions of the capital stock of a Federal Reserve capital stock of Federal Reserve Banks owned by member banks shall Bank shall, in accordance with the provisions of section 6 not be transferred or hypothecated." This provision pre •> ents a transfer of Federal Reserve Bank stock by purchase, but does not prevent a of the Federal Reserve Act, be certified to the Comptroller transfer by operation of law. When there is a merger of member banks of the Currency by the board of directors of such Federal involving the liquidation of one of such banks and the purchasing of the Reserve Bank on F. R. B. Form 59, which is made a part assets of the liquidating bank by the bank continuing in existence, it is necessary for the liquidating bank to surrender its Federal Reser e of this regulation. Such certifications shall be made Bank stock and for the purchasing bank to apply for new stock. On quarterly as of the last days of December, March, June, the other hand, if member banks consolidate under a statute which and September of each year. A duplicate copy of each does not require the liquidation of any of the consolidating banks, and the consolidted bank continues the corporate identity of one of the con- certificate shall be forwarded to the Federal Reserve Board. solidating banks, and the assets and obligations of the other consolidating banks are transferred to the consolidated bank by operation of law, III. Cancellation of old and issue of new stock certificates. the consolidated bank becomes the owner of the Federal Reserve Bank stock of the other consolidating banks as soon as the consolidation takes Whenever a member bank changes its name or, by coneffect and such stock technically need not be surrendered. The certif- solidation with another member bank acquires by operaicates of stock issued in the names of the consolidating banks, hove er should be surrendered and canceled, and a new certificate should be tion of law (see note 2) the Federal Reserve Bank issued in lieu thereof, in the new name of the consolidated bank, as stock previously held by such other member bank, it shall pro ided in the last para^ranh of this re Tilation. A consolidation of surrender to the Federal Reserve Bank the certificate of national banks under the act of Congress entitled "An act to pro ide for the consolidation of national banking associations," approved Nov. Federal Reserve Bank stock which was issued to it under 7,1918, meets all of these conditions. its old name, or which was issued to such other member. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

NOVEMBER, 1920. FEDERAL RESERVE BULLETIN. 1189 bank. The certificate so surrendered shall be indorsed Reserve Banks, checks drawn upon all member and nonby the member bank surrendering it or by the member member clearing banks of its district and upon all other bank to which it was originally issued and shall be accom- nonmember banks of its district whose checks are collected panied by proper proof of the change of name or consoli- at par by the Federal Reserve Bank. dation. Upon receipt of such certificate of stock so in- (3) Immediate credit entry upon receipt subject to final dorsed, together with such proof, the Federal Reserve payment will be made for all such items upon the books of Bank shall cancel the certificate so surrendered and shall the Federal Reserve Bank at full face value, but the proissue in lieu thereof to and in the name of the member bank ceeds will not be counted as part of the minimum reserve surrendering it a new certificate for the number of shares nor become available to meet checks drawn until such time represented by the certificate so surrendered, or if the as may be specified in the appropriate time schedule remember bank is entitled to surrender some of the stock ferred to in subdivision 7. which is represented by the surrendered certificate, and (4) Checks received by a Federal Reserve Bank on its an application for the surrender and cancellation of such member or nonmember clearing banks will be forwarded stock is at the same time made in accordance with this direct to such banks and will not be charged to their acregulation, the new certificate shall be for the number of counts until sufficient time has elapsed within which to shares represented by the surrendered certificate less the receive advice of payment, as shown by the appropriate number of shares canceled pursuant to such application. time schedule referred to in subdivision 7. All cases where certificates of stock are surrendered and (5) Under this plan each Federal Reserve Bank will new certificates issued in lieu thereof and in a different receive at par from its member and nonmember clearing name shall be reported to the Federal Reserve Board by banks checks on all member and nonmember clearing the Federal Reserve agent. banks and on all other nonmember banks whose checks can be collected at par by any Federal Reserve Bank. Member and nonmember clearing banks will be required by the Federal Reserve Board to provide funds to cover at par all checks received from or for the account of their REGULATION J, SERIES OF 1920. Federal Reserve Banks: Provided, however, That a member (Superseding Regulation J of 1917.) or nonmember clearing bank may ship currency or specie from its own vaults at the expense of its Federal Reserve CHECK CLEARING AND COLLECTION. Bank to cover any deficiency which may arise because of and only in the case of inability to provide items to offset Section 16 of the Federal Reserve Act authorizes the checks received from or for the account of its Federal Federal Reserve Board to require each Federal Reserve Reserve Bank.1 Bank to exercise the function of a clearing house for its (6) Section 19 of the Federal Reserve Act provides member banks, and section 13 of the Federal Reserve Act, that— as amended by the act approved June 21,1917, authorizes each Federal Reserve Bank to receive from anynonmem- The required balance carried by a member bank with a Federal ber bank or trust company, solely for the purposes of ex- Reserve Bank may, under the regulations and subject to such penalties change or of collection, deposits of current funds in lawful as may be prescribed by the Federal Reserve Board, be checked against money, national-bank notes, Federal Reserve notes, checks and withdrawn by such member bank for the purpose of meeting existing liabilities: Provided, however, That no bank shall at any time make and drafts payable upon presentation, or maturing notes new loans or shall pay any dividends unless and until the total balance and bills, provided such nonmember bank or trust com- required by law is fully restored. pany maintains with its Federal Reserve Bank a balance Items can not be counted as part of the minimum reserve sufficient to offset the items in transit held for its account balance to be carried by a member bank with its Federal by the Federal Reserve Bank. Reserve Bank until such time as may be specified in the In pursuance of the authority vested in it under these appropriate time schedule referred to in subdivision 7. provisions of the law, the Federal Reserve Board, desiring Therefore, should a member bank draw against items to afford both to the public and to the various banks of the before such time, the draft would be charged against its country a direct, expeditious, and economical system of reserve balance if such balance were sufficient in amount check collection and settlement of balances, has arranged to pay it; but any resulting impairment of reserve balances to have each Federal Reserve Bank exercise the functions would be subject to all the penalties provided by the act. of a clearing house for such of its member banks as desire Inasmuch as it is essential that the law in respect to the to avail themselves of its privileges and for such nonmem- maintenance by member banks of the required minimum ber State banks and trust companies as may maintain with reserve balance shall be strictly complied with, the the Federal Reserve Bank balances sufficient to qualify Federal Reserve Board, under authority vested in it by them under the provisions of section 13 to send items to section 19 of the act, has prescribed as the basic penalty Federal Reserve Banks for purposes of exchange or of col- for any deficiency in reserves a sum equivalent to an lection. Such nonmember State banks and trust com- interest charge on the amount of the deficiency of 2 per panies will hereinafter be referred to in this regulation as cent per annum above ninety-day discount rate of the nonmember clearing banks. Federal Reserve Bank of the district in which the member Each Federal Reserve Bank shall exercise the functions bank is located, and has announced that it will prescribe of a clearing house under the following general terms and for any Federal Reserve district, upon the application of conditions: the Federal Reserve Bank of that district, as an addi- (1) Each Federal Reserve Bank will receive at par from tional progressive penalty for any subsequent deficiency its member banks and from nonmember clearing banks in by the same member bank during the same calendar year its district, checks 1 drawn on all member and nonmember a sum equivalent to an interest charge on the amount of clearing banks and on all other nonmember banks which the subsequent deficiency at a rate increasing one-half agree to remit at par through the Federal Reserve Bank of of 1 per cent for each such subsequent deficiency. their district. (7) Each Federal Reserve Bank will determine by (2) Each Federal Reserve Bank will receive at par from analysis the amounts of uncollected funds appearing on other Federal Reserve Banks, and from all member and its books to the credit of each member bank. Such nonmember clearing banks, regardless of their location, for analysis will show the true status of the reserve held by the credit of their accounts with their respective Federal 1 In accordance with instructions issued by the Federal Reserve Board 1 A check is generally defined as a draft or order upon a bank or bankingon A.pr. 24,1917, the various Federal Reserve Banks have issued circulars house, purporting to be drawn upon a deposit of funds, for the payment setting forth the conditions under which their respective member banks at all events of a certain sum of money to a certain person therein named,may dra v drafts on their Reserve Bank accounts payable with or through or to him or his order, or to bearer, and payable instantly on demand. any other Federal Reserve Bank. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1190 FEDERAL RESERVE BULLETIN. NOVEMBER, 1920. the Federal Reserve Bank for each member bank and will Fifth. The names and places of business or residences enable it to apply the penalty for impairment of reserve. •f persons executing the organization certificate and the Each Federal Reserve Bank will publish time schedules number of shares to which each has subscribed. showing the time at which any item sent to it will be Sixth. The fact that the certificate is made to enable counted as reserve and become available to meet any the persons subscribing the same and all other persons, checks drawn. firms, companies, and corporations who or which may (8) In handling items for member and nonmember thereafter subscribe to or purchase shares of the capital clearing banks, a Federal Reserve Bank will act as agent stock of such Corporation to avail themselves of the only. The Board will require that each member and non- advantages of this section. member clearing bank authorize its Federal Reserve Bank The persons signing the organization certificate shall to send checks for collection to banks on which checks acknowledge the execution thereof before a judge of some are drawn, and, except for negligence, such Federal court of record or notary public who shall certify thereto Reserve Bank will assume no liability. Any further under the seal of such court or notary. Thereafter the requirements that the Board may deem necessary will be certificate shall be forwarded to the Federal Reserve set forth by the Federal Reserve Banks in their letters of Board to be filed in its office. instruction to their member and nonmember clearing banks. Each Federal Reserve Bank will also promulgate IV. Title. rules and regulations governing the details of its operations as a clearing house, such rules and regulations to be bind- Inasmuch as the name of the Corporation is subject to ing upon all member and nonmember banks which are the approval of the Federal Reserve Board, a preliminary clearing through the Federal Reserve Bank. application for that approval should be filed with the Federal Reserve Board on F. R. B. Form 150, which is made a part of this regulation. This application should state merely that the organization of a Corporation under the proposed name is contemplated and may request the ap- REGULATION K, SERIES OF 1920. proval of that name and its reservation for a period of 30 days. No Corporation which issues its own bonds, deben- (Superseding Regulation K of 1920, issued in March, 1920.) tures, or other such obligations will be permitted to have the word "bank" as a part of its title. No Corporation BANKING CORPORATIONS AUTHORIZED TO DO FOREIGN which has the word "Federal" in its title will be permitted BANKING BUSINESS UNDER THE TERMS OF SECTION also to have the word "bank" as a part of its title. So far 25 (a) OF THE FEDERAL RESERVE ACT. as possible the title of the Corporation should indicate the I. Organization. nature or reason of the business contemplated and should in no case resemble the name of any other corporation to Any number of natural persons, not less in any case the extent that it might result in misleading or deceiving than five, may form a Corporation 1 under the provisions the public as to its identity, purpose, connections, or of section 25 (a) for the purpose of engaging in interna- affiliations. tional or foreign banking or other international or foreign V. Authority to commence business. financial operations or in banking or other financial operations in a dependency or insular possession of the After the articles of association and organization certifi- United States either directly or through the agency, cate have been made and filed with the Federal Reserve ownership, or control of local institutions in foreign Board, and after they have been approved by the Federal countries or in such dependencies or insular possessions. Reserve Board and a preliminary permit to begin business has .been issued by the Federal Reserve Board, the associa- II. Articles of association. tion shall become and be a body corporate, but none of its powers except such as are incidental and preliminary to Any persons desiring to organize a corporation for any its organization shall be exercised until it has been formally of the purposes defined in section 25 (a) shall enter into authorized by the Federal Reserve Board by a final permit articles of association (see F. R. B. Form 151 which is generally to commence business. suggested as a satisfactory form of articles of association) Before the Federal Reserve Board will issue its final perwhich shall specify in general terms the objects for which mit to commence business, the president or cashier, tothe Corporation is formed, and may contain any other gether with at least three of the directors, must certify (a) provisions not inconsistent with law which the Corporation that each director elected is a citizen of the United States; may see fit to adopt for the regulation of its business and (b) that a majority of the shares of stock is owned by citthe conduct of its affairs. The articles of association shall izens of the United States, by corporations the controlling be signed by each person intending to participate in the interest in which is owned by citizens of the United States, organization of the Corporation and when signed shall be chartered under the laws of the United States, or by firms forwarded to the Federal Reserve Board in whose office or companies the controlling interest in which is owned by they shall be filed. citizens of the United States; and (c) that of the authorized capital stock specified in the articles of association at least III. Organization certificate. 25 per cent has been paid in in cash and that each shareholder has individually paid in in cash at least 25 per cent All of the persons signing the articles of association of his stock subscription. Thereafter the cashier shall cershall under their hands make an organization certificate tify to the payment of the remaining installments as and on F. R. B. Form 152, which is made a part of this regula- when each is paid in in accordance with law. tion, and which shall state specifically: First. The name assumed by the Corporation. VI. Capital stock. Second. The place or places where its operations are to No Corporation may be organized under the terms of be carried on. section 25 (a) with a capital stock of less than $2,000,000. Third. The place in the United States where its hom( The par value of each share of stock shall be specified in office is to be located. the articles of association, and no Corporation will be per- Fourth. The amount of its capital stock and the numb© mitted to issue stock of no par value. If there is more of shares into which it shall be divided. than one class of stock, the name and amount of each class and the obligations, rights, and privileges attaching thereto i Whenever these regulations refer to a Corporation spelled with a shall be set forth fully in the articles of association. Each capital C, they relate to a corporation organized under section 25 (a) of the Federal Eeserve Act. class of stock shall be so named as to indicate to the in- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

NOVEMBER, 1920. FEDERAL RESERVE BULLETIN'. 1191 vestor as nearly as possible what is its character and to put zen of the United States, or to a firm, company, or corporahim on notice of any unusual attributes. tion approved by the board of directors as an eligible stockholder. When such notice has been given by the board VII. Transfers of stock. of directors the shares of stock so held shall cease to confer Section 25 (a) provides in part that— any vote until they have been transferred as required above and if on the expiration of two months after such A majority of the shares of the capital stock of any such corporation shall at all times be held and owned by the citizens of the United States, notice the shares shall not have been so transferred, the by corporations the controlling interest in which is owned by citizens shares shall be forfeited to the Corporation. of the United States, chartered under the laws of the United States or of a State of the United States, or by firms or companies the controlling The board of directors shall prescribe in the by-laws of interest in which is owned by citizens of the United States. the Corporation appropriate regulations for the registration of the shares of stock in accordance with the terms of the In order to insure compliance at all times with the relaw and these regulations. The by-laws must also provide quirements of this provision after the organization of the that the certificates of stock issuedby the Corporation shall Corporation, shares of stock shall be issuable and transfercontain provisions sufficient to put the holder on notice able only on the books of the Corporation. Every applicaof the terms of the law and the regulations of the Federal tion for the issue or transfer of stock shall be accompanied Reserve Board denning the limitations upon the rights by an affidavit of the party to whom it is desired to issue of transfer. or transfer stock, or by his or its duly authorized agent, stating— VIII. Operations in the United States. In the case of an individual.—(a) Whether he is or is not a citizen of the United States and if a citizen of No Corporation shall carry on any part of its business in the United States, whether he is a natural born citizen the United States except such as shall be incidental to its or a citizen by naturalization, and if naturalized, whether international or foreign business. Agencies may be eshe remains for any purpose in the allegiance of any tablished in the United States with the approval of the foreign sovereign or state; (6) whether there is or is not Federal Reserve Board for specific purposes, but not genany arrangement under which he is to hold the shares erally to carry on the business of the Corporation. or any of the shares which he desires to have issued or transferred to him, in trust for or in any way under the IX. Investments in the stock of other corporations. control of any foreign state or any foreigner, foreign corporation, or any corporation under foreign control, and if so, It is contemplated by the law that a Corporation shall the nature thereof. conduct its business abroad either directly or indirectly through the ownership or control of corporations, and it is In the case of a corporation.—(a) Whether such corporaaccordingly provided that a Corporation may invest in the tion is or is not chartered under the laws of the United stock, or other certificates of ownership, of any other cor- States or of a State of the United States. If it is not, no poration organized— further declaration is necessary, but if it is, it must also be stated (b) whether the controlling interest in such cor- (a) Under the provisions of section 25 (a) of the Federal poration is or is not owned by citizens of the United States, Reserve Act; and (c) whether there is or is not any arrangement under (6) Under the laws of any foreign country or a colony or which such coropration will hold the shares or any of the dependency thereof; shares if issued or transferred to such corporation, in trust (c) Under the laws of any State, dependency, or insular for or in any way under the control of any foreign state or possession of the United States; any foreigner or foreign corporation or any corporation provided, first, that such other corporation is not engaged under foreign control, and, if so, the nature thereof. in the general business of buying or selling goods, wares, merchandise, or commodities in the United States; and In the case of a firm or company.—(a) Whether the consecond, that it is not transacting any business in the United trolling interest in such firm or company is or is not owned States except such as is incidental to its international or by citizens of the United States and, if so, (b) whether foreign business. there is or is not any arrangement under which such firm or company will hold the snares or any of the shares if is- Except with the approval of the Federal Reserve Board, sued or transferred to such firm or company in trust for or no Corporation shall invest an amount in excess of 15 per in any way under the control of any foreign state or any cent of its capital and surplus in the stock of any corporaforeigner or foreign corporation or any corporation under tion engaged in the business of banking, or an amount in foreign control, and, if so, the nature thereof. excess of 10 per cent of its capital and surplus in the stock of any other kind of corporation. The board of directors of the Corporation, whether acting directly or through an agent, may, before making any issue No Corporation shall purchase any stock in any other or transfer of stock, require such further evidence as in corporation organized under the terms of section 25 (a) or their discretion they may think necessary in order to de- under the laws of any State, which is in substantial comtermine whether or not the issue or transfer of the stock petition therewith, or which holds stock or certificates of would result in a violation of the law. No issue or transfer ownership in corporations which are in substantial compeof stock which would cause 50 per cent or more of the total tition with the purchasing Corporation. This restriction, amount of stock issued or outstanding to be held contrary however, does not apply to corporations organized under to the provisions of the law or these regulations shall be foreign laws. made upon the books of the Corporation. The decision X. Branches. of the board of directors in each case shall be final and con- No Corporation shall establish any branches except clusive and not subject to any question by any person, with the approval of the Federal Reserve Board, and in firm, or corporation on any ground whatsoever. no case shall any branch be established in the United If at any time by reason of the fact that the holder of any States. shares of the Corporation ceases to be a citizen of the United States, or, in the opinion of the board of directors, becomes XI. Issue of debentures, bonds, and promissory notes. subject to the control of any foreign state or foreigner or foreign corporation or corporation under foreign control, Approval of the Federal Reserve Board.—No Corporation 50 per cent or more of the total amount of capital stock shall make any public or private issue of its debentures, issued or outstanding is held contrary to the provisions of bonds, notes, or other such obligations without the approval the law or these regulations, the board of directors may, of the Federal Reserve Board, but this restriction shall when apprised of that fact, forthwith serve on the holder not apply to notes issued by the Corporation in borrowing of the shares in question a notice in writing requiring such from banks or bankers for temporary purposes not to exceed nolder within two months to transfer such shares to a citi- one year. The approval of the Federal Reserve Board Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1192 FEDERAL RESERVE BULLETIN. NOVEMBER, 1920. will be based solely upon the right of the Corporation to Limitations.—(1) Individual drawers: No acceptances make the issue under the terms of this regulation and shall be made for the account of any one drawer in an shall not be understood in any way to imply that the amount aggregating at any time in excess of 10 per cent Federal Reserve Board has approved or passed upon the of the subscribed capital and surplus of the Corporation, merits of such obligations as an investment. The Federal unless the transaction be fully secured or represents an Reserve Board will consider the general character and exportation or importation of commodities and is guaranteed scope of the business of the Corporation in determining by a bank or banker of undoubted solvency. (2) Aggrethe amount of debentures, bonds, notes, or other such gates: Whenever the aggregate of acceptances outstanding obligations of the Corporation which may be issued by it. at any time (a) exceeds the amount of the subscribed Application.—Every application for the approval of capital and surplus, 50 per cent of all the acceptances in any such issue by a Corporation shall be accompanied by excess of the amount shall be fully secured; or (6) exceeds (1) a statement of the condition of the Corporation in such twice the amount of the subscribed capital and surplus, all form and as of such date as the Federal Reserve Board the acceptances outstanding in excess of such amount may require; (2) a detailed list & the securities by which shall be fully secured. (The Corporation shall elect it is proposed to secure such issue, stating their maturities, whichever requirement (a) or (6) calls for the smaller indorsements, guaranties, or collateral, if any, and in amount of secured acceptances.) In no event shall any general terms the nature of the transaction or transactions Corporation have outstanding at any one time acceptances upon which they were based; and (3) such other data as drawn for the purpose of furnishing dollar exchange in an the Federal Reserve Board may from time to time require. amount aggregating more than 50 per cent of its subscribed Advertisements.—No circular, letter, or other document capital and surplus. advertising the issue of the obligations of a Corporation Reserves.—Against all acceptances outstanding which shall state or contain any reference to the fact that the mature in 30 days or less a reserve of at least 15 per cent Federal Reserve Board has granted its approval of the shall be maintained, and against all acceptances outstandissue to which the advertisement relates. This require- ing which mature in more than 30 days a reserve of at least ment will be enforced strictly in order that there may be 3 per cent shall be maintained. Reserves against acceptno possibility of the public's misconstruing such a refer- ances must be in liquid assets of any or all of the following ence to be an approval by the Federal Reserve Board of kinds: (1) cash; (2) balances with other banks; (3) bankthe merits or desirability of the obligations as an invest- ers' acceptances; and (4) such securities as the Federal ment. Reserve Board may from time to time permit. XII. Sale of foreign securities. XIV. Deposits. Approval of the Federal Reserve Board.—No Corporation shall offer for sale any foreign securities with its indorse- In the United States.—No Corporation shall receive in ment or guaranty, except with the approval of the Federal the United States any deposits except as are incidental Reserve Board, but such approval will be based solely to or for the purpose of carrying out transactions in foreign upon the right of the Corporation to make such a sale countries or dependencies of the United States where the under the terms of this regulation and shall not be under- Corporation has established agencies, branches, correstood in any way to imply that the Federal Reserve spondents, or where it operates through the ownership or Board has approved or passed upon the merits of such control of subsidiary corporations. Deposits of this securities as an investment. character may be made by individuals, firms, banks, or Application.—Every application for the approval of other corporations, whether foreign or domestic, and may such sale shall be accompanied by a statement of the be time deposits or on demand. character and amount of the securities proposed to be sold, Outside the United States.—Outside the United States a their indorsements, guaranties, or collateral, if any, and Corporation may receive deposits of any kind from indisuch other data as the Federal Reserve Board may from viduals, firms, banks, or other corporations: Provided, time to time require. however, That if such Corporation has any of its bonds, Advertisements.—No circular, letter, or other document debentures, or other such obligations outstanding it may advertising the sale of foreign securities by a Corporation receive abroad only such deposits as are incidental to the with its indorsement or guaranty shall state or contain any conduct of its exchange, discoimt, or loan operations. reference to the fact that the Federal Reserve Board has Reserves.—Against all deposits received in the United granted its approval of the sale of the securities to which States reserve of not less than 13 per cent must be mainthe advertisement relates. tained. This reserve may consist of cash in vault, a balance with the Federal Reserve Bank of the district in XIII. Acceptances. which the head office of the Corporation is located, or a Kinds.—Any Corporation may accept (1) drafts and balance with any member bank. Against all deposits rebills of exchange drawn upon it which grow out of transac- ceived abroad the Corporation shall maintain such reserves tions involving the importation or exportation of goods, as may be required by local laws and by the dictates of and (2) drafts and bills of exchange which are drawn by sound business judgment and banking principles. banks or bankers located in foreign countries or dependencies or insular possessions of the United States for the XV. General limitations and restrictions. purpose of furnishing dollar exchange as required by the usages of trade in such countries, dependencies, and Liabilities of one borrower.—The total liabilities to a Corpossessions, provided, however, that, except with the poration of any person, company, firm, or corporation for approval of the Federal Reserve Board and subject to such money borrowed, including in the liabilities of a company limitations as it may prescribe, no Corporation shall exer- or firm the liabilities of the several members thereof, shall cise its power to accept drafts or bills of exchange if at at no time exceed 10 per cent of the amount of its subthe time such drafts or bills are presented for acceptance scribed capital and surplus, except with the approval of it has outstanding any debentures, bonds, notes, or other the Federal Reserve Board: Provided, however, That the such obligations issued by it. discount of bills of exchange drawn in good faith against Maturity.—Except with the approval of the Federal actually existing values and the discount of commercial or Reserve Board, no Corporation shall accept any draft or business paper actually owned by the person negotiating bill of exchange which grows out of a transaction involving the same shall not be considered as money borrowed the importation or exportation of goods with a maturity within the meaning of this paragraph. The liability of a in excess of six months, or shall accept any draft or bill of customer on account of an acceptance made by the Corexchange drawn for the purpose of furnishing dollar poration for his account is not a liability for money borexchange with a maturity in excess of three months. rowed within the meaning of this paragraph unless and Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

NOVEMBER, 1920. FEDERAL RESERVE BULLETIN. 1193 until he fails to place the Corporation in funds to cover the banks and trust companies doing business in the District payment of the acceptance at maturity or unless the Cor- of Columbia, regardless of the sources of their charter. poration itself holds the acceptance. The term "resources" shall be construed to mean an Aggregate liabilities of the Corporation.—The aggregate oafmount equal to the sum of the deposits, capital, surplus, the Corporation's liabilities outstanding on account of ac- and undivided profits. ceptances, average domestic and foreign deposits, deben- The term "State bank " shall include any bank, banking tures, bonds, notes, guaranties, indorsements, and other association, or trust company incorporated under State law. such obligations shall not exceed at any one time ten times The term "private banker" shall apply to any unincorthe amount of the Corporation's subscribed capital and porated individual engaging in one or more phases of the surplus except with the approval of the Federal Reserve banking business as that term is generally understood and Board. In determining the amount of the libilities within to any member of an unincorporated firm engaging in such the meaning of this paragraph, indorsements of bills of ex- business. change having not more than six months to run, drawn, The term "Edge Act" shall mean section 25 (a) of the and accepted by others than the Corporation, shall not be Federal Reserve Act, as amended December 24, 1919. included. The term "Edge Corporation" shall mean any corpora- Operations abroad.—Except as otherwise provided in the tion organized under the provisions of the Edge Act. law and these regulations, a Corporation may exercise The term "city of over 200,000 inhabitants'' includes abroad not only the powers specifically set forth in the law any city, incorporated town, or village of more than 200,000 but also such incidental powers as may be usual in the inhabitants, as shown by the last preceding d ecennial cendetermination of the Federal Reserve Board in connection sus of the United States. Any bank located anywhere with the transaction of the business of banking or other within the corporate limits of such city is located in a city financial operations in the countries in which it shall of over 200,000 inhabitants within the meaning of the Claytransact business. In the exercise of any of these powers ton Act, even though it is located in a suburb or an outlying abroad a Corporation must be guided by the laws of the district at some distance from the principal part of the city. country in which it is operating and by sound business judgment and banking principles. II. Prohibitions of Clayton Act. XVI. Management. Under section 8 of the Clayton Antitrust Act— (1) No person who is a director or other officer or em- The directors, officers, or employees of a Corporation ployee of a national bank or Edge Corporation having reshall exercise their rights and perform their duties as disources aggregating more than $5,000,000 can legally serve rectors, officers, or employees, with due regard to both the at the same time as director, officer, or employee of any letter and the spirit of the law and these regulations. For other national bank or Edge Corporation, regardless of its the purpose of these regulations the Corporation shall, of location. course, be responsible for all acts of omission or commission (2) No person who is a director in a State bank or trust of any of its directors, officers, employees, or representcompany having resources aggregating more than atives in the conduct of their official duties. The character $5,000,000 or who is a private banker having resources agof the management of a Corporation and its general attigregating more than $5,000,000 can legally serve at the tude toward the purpose and spirit of the law and these same time as director of any national bank or Edge Corporegulations will be considered by the Federal Reserve ration, regardless of its location. Board in acting upon any application made under the (3) No person can legally be a director, officer, or emterms of these regulations. ployee of a national bank or Edge Corporation located in a city of more than 200,000 inhabitants who is at the same XVII. Reports and examinations. time a private banker in the same city or a director, officer, Reports.—Each Corporation shall make at least two re- or employee of any other bank (State or national) located ports annually to the Federal Reserve Board at such in the same city, regardless of the size of such bank. times and in such form as it may require. The eligibility of a director, officer, or employee under Examinations.—Each Corporation shall be examined at the foregoing provisions is determined by the average least once a year by examiners appointed by the Federal amount of deposits, capital, surplus, and undivided profits Reserve Board. The cost of examinations shall be paid as shown in the official statements of such bank, banking by the Corporation examined. association, or trust company filed as provided by law during the fiscal year next preceding the date set for the XVIII. Amendments to regulations. annual election of directors, and when a director, officer, or employee has been elected or selected in accordance These regulations are subject to amendment by the with the provisions of the Clayton Act it is lawful for him Federal Reserve Board from time to time: Provided, how- to continue as such for one year thereafter under said ever, That no such amendment shall prejudice obligations election or employment. undertaken in good faith under regulations in effect at When any person elected or chosen as a director, officer, the time they were assumed. or employee of any bank is eligible at the time of his election or selection to act for such bank in such capacity his eligibility to act in such capacity is not affected by reason of any change in the affairs of such bank from whatsoever REGULATION L, SERIES OF 1920. cause, until the expiration of one year from the date of his election or employment. INTERLOCKING BANK DIRECTORATES UNDER THE CLAY- TON ACT. III. Exceptions. I. Definitions. The provisions of section 8 of the Clayton Act— Within the meaning of this regulation— (1) Do not apply to mutual savings banks not having a The term ''member bank" shall apply to any national capital stock represented by shares. bank and any State bank or trust company which is a (2) Do not prohibit a person from being at the same time member of the Federal Reserve System. a director, officer, or employee of a national bank or Edge The term "national bank" shall be construed to apply Corporation and not more than one other national bank, not only to national banking associations, but also to all Edge Corporation, State bank, or trust company, where the Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1194 FEDERAL RESERVE BULLETIN. NOVEMBER, 1920. entire capital stock if one is owned by the stockholders of Applications for permission.—A person wishing to obtain the other. the permission of the Federal Reserve Board to serve (3) Do not prohibit a person from being at the same time banks coming within the prohibitions of the Clayton Act a class A director of a Federal Reserve Bank and also an should: officer or director, or both an officer and a director, in one (1) Make formal application on F. R. B. Form 94, or, if member bank. a private banker, on F. R. B. Form 94d. Each of these (4) Do not prohibit a person who is serving as director forms is made a part of this regulation. of a national bank, or Edge Corporation, even though it (2) Obtain from each of the banks involved a statement has resources aggregating over $5,000,000, from serving at on F. R. B. Form 94a, which is made a part of this reguthe same time as director of any number of State banks lation, showing the character of its business, together with and trust companies, provided such State institutions are a copy of its last published statement of condition, and, if not located in the same city of over 200,000 inhabitants a private banker, make a statement on F. R. B. Form 94a as the national bank or Edge Corporation, and do not have showing the character of his or his firm's business. resources aggregating in the case of any one bank more than (3) Forward all these papers to the Federal Reserve $5,000,000. agent of his district, who will attach his recommendation (5) Do not prohibit a person from serving at the same on F. R. B. Form 94b, which is made a part of this regutime as director, officer, or employee of any number of lation, and forward them in due course to the Federal national banks, provided no two of them are located in the Reserve Board. same city of over 200,000 inhabitants and no one of them Approval or disapproval.—As soon as an application is has resources aggregating over $5,000,000. acted upon by the Board, the applicant will be advised of (6) Do not prohibit a person who is not a director, officer, the action taken. or employee of any national bank or Edge Corporation from If the Board approves the application, a formal certifiserving at the same time as officer, director, or employee cate of permission to serve on the banks involved will be of any number of State banks or trust companies, regard- issued to the applicant. less of their locations and resources. Rehearing.—If the Board decides that the banks are in (7) Do not prohibit a person who is an officer or employee substantial competition and that it can not approve the but not a director of a State bank from serving as director, application, it will, upon petition of the applicant, reconofficer, or employee of a national bank, or Edge Corpora- sider its decision and afford him every opportunity to tion, even though such State bank has resources aggregat- present any additional facts or arguments bearing on the ing over $5,000,000, provided both banks are not located subject. in the same city of over 200,000 inhabitants. Effect of permits.—Permission once granted is continuing (8) Do not prohibit a person who is an officer or employee until revoked, and need not be renewed. but not a director of a national bank or Edge Corporation Revocation.—All permits, however, are subject to refrom serving at the same time as director, officer, or em- vocation at any time in the discretion of the Federal ployee of a State bank, even though such State bank has Reserve Board. The issuance of a permit to any person resources aggregating over $5,000,000, provided both shall have the effect of revoking any or all permits which banks are not located in the same city of over 200,000 in- may have been issued previously to that person. habitants. (9) Do not apply to persons who have obtained the V. Permits under section 25 of the Federal Reserve Act. consent or approval of the Federal Reserve Board under the provisions of the Kern amendment, section 25 of the With the approval of the Federal Reserve Board, any Federal Reserve Act, or the Edge Act, as hereinafter director, officer, or employee of a member bank which has invested in the stock of any corporation principally enprovided. gaged in international or foreign banking or financial opera- Exceptions cumulative.—The above exceptions are cutions or banking in a dependency or insular possession of mulative. the United States, under the provisions of section 25 of the Federal Reserve Act, may serve as director, officer, or IV. Permission of the Federal Reserve Board under Kern employee of any such foreign bank or financial corporation. amendment. Applications for approval.—The approval of the Federal By the Kern amendment, approved May 15, 1916, as Reserve Board for such interlocking directorates may be amended May 26, 1920, the Clayton Act was amended so obtained through an informal application in the form of a as to authorize the Federal Reserve Board to permit any letter addressed to the Federal Reserve Board either by private banker or any officer, director, or employee of any the officer, director, or employee involved, or in his behalf member bank or class A director of a Federal Reserve by one of the banks which he is serving. Such application Bank to serve as director, officer, or employee of not more should be sent directly to the Federal Reserve Board. than two other banks, banking associations, or trust companies coining within the prohibitions of the Clayton VI. Permits to serve Edge corporations. Act, provided such other banks are not in substantial competition with such private banker or member bank. With the approval of the Federal Reserve Board— Substantial competition.—If the institutions involved are (1) Any officer, director, or employee of any member not in substantial competition, the Board is authorized, in bank may serve at the same time as director, officer, or its discretion, to grant, withhold, or revoke such consent; employee of any Edge Corporation in whose capital stock but if they are in substantial competition, the Board has the member bank shall have invested. no discretion in the matter and must refuse such consent. (2) Any officer, director, or employee of any Edge When obtained.—Inasmuch as the Kern amendment ex- Corporation may serve at the same time as officer, director, cepts from the prohibitions of the Clayton Act only those or employee of any other corporation in whose capital " who shall first procure the consent of the Federal Reserve stock such Edge Corporation shall have invested under the Board," it is a violation of the law to serve two or more provisions of the Edge Act. institutions in the prohibited classes before such consent Applications for approval.—Such approval may be obhas been obtained. Such consent should be obtained, tained through an informal application in the form of a therefore, before becoming an officer, director, or employee letter addressed to the Federal Reserve Board either by of more than one bank in the prohibited classes. Such the director, officer, or employee involved, or in his behalf consent may be procured before the person applying there- by one of the banks or corporations involved. Such applifor has been elected as a class A director of a Federal Re- cations should be sent directly to the Federal Reserve serve Bank or as a director of any member bank. Board. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

NOVEMBER, 1920. FEDERAL RESERVE BULLETIN. 1195 RETAIL TRADE. ing weighted according to volume of business done during the calendar year 1919. For the In the following tables is given a summary month of September, the tables are based on of the results obtained during the past few reports from 24 stores in district No. 1, 14 in months in the 12 Federal Reserve districts on district No. 2, 35 in district No. 3, 19 in disthe regular retail trade index form from repre- trict No. 4, 24 in district No. 5, 10 in district sentative department stores. In districts Nos. No. 6, 6 in district No. 7, 8 in district No. 8, 1, 5, 11, and 12 the data were received in 5 in district No. 9, 13 in district No. 10, 16 in (and averages computed from) actual amounts district No. 11, and 31 in district No. 12. The (dollars). In districts Nos. 2, 3, 4, 6, 7, 8, 9, number of stores vary somewhat, due to the and 10 the material wTas received in the form inclusion of new stores from time to time in the of percentages, the averages for the cities and reporting list. districts computed from such percentages be- Condition of retail trade in the twelve Federal Reserve districts. [Percentage of increase.] Comparison of net sales with those of corresponding period previous year. Jan. 1,1920, to close of— Julyl, 1920, to end of— District and city. Jan., Feb., Mar., Apr., May, June, July, Aug., Sept., 1920. 1920. 1920. 1920. 1920. 1920. 1920. 1920. 1920. Feb., Mar., Apr., May, June, July, Aug., Sept., 1920. 1920. ^920. 1920. 1920. 1920. 1920. 1920. District No. 1: Boston 33.2 15.4 38.9 16.8 19.4 27.8 16.3 11.6 16.0 24.9 30.7 26.1 24.7 25.3 16.3 24.1 15.9 Outside 43.5 36.1 29.4 26.0 25.5 28.5 27.2 9.1 14.7 41.6 36.4 33.1 30.5 30.0 27.2 18.1 16.9 District...'.. 34.8 18.3 37.5 18.5 20.7 28.0 19.9 10.9 15.4 32.5 31.6 27.5 25.8 26.2 19.9 15.1 15.2 District No. 2: N.Y.City and Brooklyn... 54.6 29.9 66.6 15.0 41.1 26.4 22.4 10.9 i 3.2 39.8 59.3 35.0 35.3 32.7 22.4 13.0 3.6 Outside 50.4 22.4 22.8 32.3 26.9 26.4 16.9 38.1 33.6 30.1 31.7 26.9 27.1 23.4 District 64.8 15.8 35.4 28.4 24.4 15.9 3.6 57.0 34.9 33.7 33.8 24.4 17.5 10.2 District No. 3 22.2 17.6 37.5 12.4 50.7 34.3 23.8 22.6 15.2 20.3 26.2 20.5 30.9 31.0 23.8 24.9 19.6 District No. 4 28.6 45.5 18.4 31.3 31.5 29.9 25.7 24.6 36.0 38.2 33.6 32.1 34.6 29.9 27.3 25.9 District No. 5 14.2 23.1 .9 11.0 21.4 15.7 20.9 7.5 5.3 12.1 8.8 9.3 11.4 15.7 21.1 14.1 District No. 6 27.4 23.4 31.0 24.3 11.6 27.6 12.6 29.9 22.0 28.1 29.3 11.6 19.6 16.9 District No. 7 "48*2" ""51 ".7* 65.2 33.3 49.7 59.6 41.2 33.2 28.6 "50.7" 57.4 43.5 49.6 58.7 41.2 29.6 35.5 District No. 8 20.8 11.8 18 0 16 8 District No. 9 17.0 4.3 11.8 11.6 8.8 .3 19.8 5.6 12.0 ii.6 D D D i i i s s s t t t r r r i i i c c c t t t N N N o o o . . . 1 1 1 2 0 1 : ... " 24".6" 19.6 10.9 12.9 • 2 1 5 4. . 1 9 2 9 5 . . 9 6 1 7 2 . 8 4 *"26".9" 24.9 21.2 17.9 2 1 5 4 .1 9 "i 2 4 5 * 2 2 2 i 0 i. 9 i Los Angeles... 83.8 51.6 58.4 43.6 38.2 39.0 35.1 48.9 29.1 68.3 61.2 56.1 52.2 49.8 35.1 42.4 37.9 San Francisco. 53.5 26.9 35.4 28.5 40.9 23.6 21.0 18.6 10.4 58.9 39.7 36.6 37.6 35.3 21.0 19.6 17.3 Oakland 41.4 27.4 31.0 14.9 17.1 15.2 16.9 15.3 34.8 32.3 27.9 25.6 23.3 16.9 14.7 Sacramento... 54.2 22.6 65.1 33.9 34.4 32.1 20.1 3.1 36.6 60.9 47.5 39.4 38.3 20 1 13 3 Seattle 23.9 22.4 19.2 4.3 6.3 11.1 .2 !8.0 14.5 23.0 21.8 16.2 13.9 13.4 .2 1 4.4 M.2 Spokane 36.2 23.6 19.8 10.9 48.8 62.8 22.7 12.7 30.1 26.8 23.1 29 1 35 7 22 7 16 8 Salt Lake City 23.8 11.5 10.5 7.1 26.4 18.3 20.6 11.6 18.1 15.1 12.8 16.4 14.7 20.6 16.1 District 51.7 31.1 37.8 13.8 31.2 27.8 21.2 21.7 14.5 46.5 41.0 36.9 34.7 33.2 21.2 21.4 19.8 1 Decrease. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1196 FEDERAL RESERVE BULLETIN. NOVEMBER, 192O._ Conditions of retail trade in the twelve Federal Reserve districts—Continued. [Percentage of increase.] Stocks at end of month compared with— Same month previous year. Previous month. District and city. Jan., Feb., Mar., Apr., May, June, July, Aug., Sept., Jan., Feb., Mar., Apr., May, June, July, Aug.,Sept., 1920. 1920. 1920. 1920. 1920. 1920. 1920. 1920. 1920. 1920. 1920. 1920. 1920. 1920. 1920. 1920. 1920. 1920. District No. 1: Boston 29.7 38.1 42.3 45.2 44.5 43.8 32.1 26.3 20.7 15.2 7.4 9.9 4.0 X3.4 15.6 17.0 4.9 9.5 Outside 28.4 37.5 44.9 43.2 43.8 36.3 30.4 26.4 21.7 13.7 9.7 11.9 2.8 U.8 15.1 .2 3.2 9.7 District. 29.6 38.0 42.8 44.7 44.3 41.4 31.5 26.4 21.0 15.1 7.8 10.2 3.7 12.9 15.5 14.7 4.3 9.5 District No. 2: •- New York City and Brooklyn 44.0 49.6 69.6 53.8 47.9 45.a 46.2 30.7 18.0 11.9 8.4 27.9 1 .3 16.6 15.4 14.3 7.3 5.7 60.6 51.6 51.7 38.4 30.9 26.3 20.2 9.3 11.7 17.7 4.6 5.6 9.3 District 68.6 53.6 49.1 1 43.2 39.5 29.3 18.7 ... 1 25.8 1.4 15.0 16.1 1.5 6.8 6.9 D Di i s s t tr r i i c ct t N N o o . 4 3 9.9 4 1 8 6 . . 6 4 2 5 4 6 . . 3 1 2 6 5 3 . . 7 9 3 5 0 7 . . 4 0 5 2 3 6.7 3 2488..43 - 3 4 1 0 . . 0 4 3 2 4 0 . . 0 6 13.4 4 7 5 . . 0 1 1 11 2 . . 6 3 • 5 7 . . 4 3 16 1 . . 7 9 1 11 3 . . 0 0 1 0 1.4 0 : 6 9 . . 2 4 8 9 . 4 2 District No. 5 57.0 51.5 59.5 67.1 57.2 44.6 29.6 21.1 10.5 14.1 i.l 2.3 19.2 2.5 2.3 10.2 District No. 6 41.1 29.9 50.2 472 51.6 39.8 37.2 4.7 3.0 1.5 15.6 5.6 5.4 13.1 District No 7 42.7 *5i.*8" 64.9 39.9 49.7 771 70.1 64.1 55.5 "£4.7*"55.*9 10.1 .0 2.1 .0 14.7 14.6 4.8 District No 8 24.2 35.4 5.6 11 6 District No 9 27.6 18.7 30 7 12.6 17.7 22.6 4.7 .8 3.1 14.7 2.9 6 9 District No 10 38.9 43.3 40.7 43.6 39.1 29.1 7.8 3.1 16.1 8 9 9 8 4 6 District No 11 69.5 59.5 52.8 8.3 22.3 6.6 District No. 12: 44.0 42.1 58.3 64.9 65.0 62.9 47.5 31.2 33.4 9.7 12.1 7.8 3.7 1.5 1.4 1.8 12.5 13.7 San Francisco 45.9 59.4 62.2 60.7 54.9 58.5 43.1 27.1 16.2 4.7 12.7 6.1 2.4 16.5 15.2 1.5 1.4 7 4 Oakland 10.6 27.7 35.2 34.4 29.7 339 27.7 22.5 18.4 18.6 6.5 1.5 1.6 12.6 l2.9 2.3 S S a e c a r tt a l m e ento *44."5* 3 53 7 . . 7 1 6 5 1 3 . . 8 8 5 2 5 9 . . 5 4 3 46 4 . . 7 1 "35h' 23.4 1 1 8 1 . . 4 4 *"3.*9" 12.6 "ii.8 1 3 4 . . 7 9 16.'7 18. . 7 1 14.2 9.8 6 3 25.4 35.0 63.3 39.0 59.6 573 45.8 45.5 9.4 10.9 27.9 140.2 15.7 14.4 1.8 9.1 * * District 38.0 48.4 58.0 56.5 52.6 52.5 40.1 25.3 20.6 2.6 14.0 9.6 14.7 13.0 1.8 .7 4.9 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. Jan.1,1920, to end of— J t u o l y e n 1 d , 1 o 9 f 2 — 0, Jan., Feb., Mar., Apr., May, June. July, Aug., Sept., 1920. 19iO. 1920. 1920. 1920. 1920. 1920. 1920. 1920. Jan., Feb., Mar., Apr. May, June, July, Aug., Sept., 19^0. 1920. 1920. 1920 1920. 1920. 1920. 1920. 1920. District No. 1: Boston 320.8 382.2 509.5 389. £ 348.4 339.2 419.2 447.1 412.7 26.5 19.6 18.8 15.8 15.4 15.4 18.5 13.7 11.4 Outside 229.8 402.5 320.5 464.7 442.5 431.7 436.4 472.1 485.9 16.7 19.7 18.6 15.5 7.5 10.0 9.1 14.2 14.7 District 306.0 385.5 389.9 405.5 366.5 358.0 425.1 455.1 433.5 24.0 19.6 18.7 15.7 12.7 12.3 12.0 14.0 13.1 District No. 2: New York City and Brooklyn. 336.9 405.6 384.7 403.1 392.4 379.9 390.0 489.3 613.7 22.8 22.9 18.8 17.6 15.5 16.8 15.7 16.8 14.7 Outside 372.3 392. g 415.7 349.5 485.8 506.3 492.1 20.3 21.8 13.9 17.7 18.9 14.3 12.0 District 383.4 402. C 399.4 369.9 440.1 496.7 573.9 19.0 18.2 14.8 17.2- 17.4 15.9 13.6 District No. 3 . 380.0 347. C 382.6 357.5 399.8 471.2 500.3 21.0 27.9 24.8 23.5 17.6 19.3 19.8 14.2 10.1 District No. 4 386.3 369.1 439. C 362. S 362.3 403.6 412.7 468.8 18.6 19.4 34.8 13.2 16.2 18.9 17.0 13.3 District No. 5 456.8 423.8 422.2 421.5 407.0 505.9 560.7 512.9 20.4 16.9 12.1 9.9 9.7 16.1 14.8 8.4 District No. 6.. . . 20.9 20.1 20.6 17.0 17.4 15.6 11.0 District No. 7 298.6 332.1 305.8 328.3 432.7 427.9 410.7 ii.i 29.7 31.4 31.2 31.9 19.5 19.3 23.2 15.7 District No. 8 432.6 377.0 17.2 9.2 District No. 9 189.4I 31.8 iO9.6 107.9 9.6 19.5 20.0 13.7 9.1 District No. 10 "337." 6* 272.1 2854 353.7 384.1 *334." 6*"346!4" "i4."6- 18.0 5.4 25.3 15.6 9.7 ***8"8 District No. 11 425.5 523.9 18.6 12.7 10.0 District No. 12: Los Angeles 422.7 418.3 468.3 390.'I 480.4 481.3 522.5 454.2 486.0 33.3 37.1 33.9 39.0 29.7 26.2 22.8 15.5 12.0 San Francisco.. 405.2 477.5 494.9 492. C) 469.8 508.8 539.9 512.8 511.5 18.2 31.9 31.0 27.7 23.9 26.0 25.9 21.1 10.8 Oakland 490.6 581.6 610.7 585.1> 589.5 573.8 625.1 598.3 Sacramento 533.4 531.3 423.3 Seattle. "427." i" 665." 6"*542."6""527."<)' 539.7 524.6 *476."2" 532.7 "508." 6" "22*6""17'. h'"i7."2""U.2 *i6.*3"*i6."3**i2*2*"**8.*6 Spokane. 508.8 755.9 605.8 528 i 605 * 579 4 652 6 675 5 37 2 40 6 34.7 31.1 25 1 29 9 Salt Lake City.. 18.7 District 429.0 534.7 515.3 456. () 508.0 516.0 536.5 489.6 504.0 28.0 31.7 27.2 21.6 23.2 23.1 22.3 14.2 9.5 1 Decrease. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

NOVEMBER, 1920. FEDERAL RESERVE BULLETIN. 1197 FOREIGN TRADE INDEX. After their decline in August total exports, as measured in physical quantities of goods There is presented below a series of indexes rather than in values, again showed a slight designed to reflect movements in foreign trade increase during September, though they were of the United States, with fluctuations due to still considerably less than for July. The price changes eliminated. The commodities exports of producers' goods again showed a chosen for these indexes are those for which decrease, but this was more than compensated prices are compiled by the Federal Reserve for by the increase in raw materials, due to Board in the preparation of its international the seasonal movements of agricultural prodprice index. The list includes 25 of the most ucts. Total imports showed a further deimportant imports, the value of which in 1913 cline, being the lowest point reached during formed 47.7 per cent of the total import values, the year 1920. A very large decrease is and 29 of the most important exports, the noticeable in every class of imports, though value of which in 1913 formed 56.3 per cent the largest decrease is shown in producers' of the total export values. The list of the goods. commodities is given in the July BULLETIN.1 Value of exports and imports of selected commodities at 1918 prices. [In thousands of dollars; i. e., 000 omitted.] [Monthly average values, 1913=equal 100.] Exports. Imports. Raw materials Producers' Consumers' Grand total Raw materials Producers' Consumers' Grand total (^commodi- goods (10 com- goods (7 com- exports (29 com- (10 commodi- goods (12 com- goods (3 com- imports (25 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 61,347 121.9 40,107 108.3 14,219 108.0 115,673 115.1 February... 71,074 83.0 12,266 105.8 30,790 101.2 114,130 89.4 55,332 110.0 41,060 110.9 14,335 108.9 110,727 110.1 March 61,681 72.0 11,836 102.1 28,698 94.3 102,215 80.1 55,555 110.4 45,753 123.6 13,378 101.6 114,686 114.1 April 71,446 83.0 14,128 121.8 28,708 94.3 114,282 89.5 52,271 103.9 42,346 114.4 10,896 82.7 105,513 104.9 May 68,856 80.4 11,661 100.6 29,923 98.3 110,440 86.5 50,089 99.5 38,409 103.7 7,718 58.6 96,216 95.7 June 46,963 54.8 11,612 100.1 28,242 92.8 86,817 68.0 40,822 81.1 38,606 104.3 8,382 63.7 87,810 87.3 July 51,325 59.9 11,109 95.8 27,686 91.0 90,120 70.6 40,298 80.1 35,990 97.2 9,698 73.6 85,986 85.4 August 74,869 87.4 11,547 99.5 29,370 96.5 115,786 90.7 42,470 84.4 37,385 101.0 11,078 84.1 90,933 90.4 September.. 103,614 120.9 10,622 91.6 32,190 105.8 146,426 114.7 52,659 104.6 41,184 111.2 15,883 120.6 109,726 109.2 October 137,772 160.9 12,608 108.7 34,612 113.8 184,992 144.9 44,407 88.2 22,721 61.4 15,929 121.0 83,057 82.6 November.. 126, me 148.1 9,987 86.1 31,246 102.7 168,069 131.6 48,107 95.6 28,788 77.8 15,059 114.4 91,954 91.5 December.. . 113,326 132.3 10,053 86.7 33,089 108.7 156,468 122.5 60,904 121.0 31,929 86.2 21,446 162.9 114,279 113.7 Year. 1,027.789 100.0 139,191 100.0 365,269 100.0 1,532,249 100.0 604,261 100.0 444,278 100.0 158,021 100.0 1,206,560 100.0 ===== 1919. January 84,066 98.2 18,444 159.0 56,748 186.4 159,258 124.7 44,552 88.5 53,071 143.3 14,434 108.1 112,057 111.4 February... 58,488 68.3 14,598 125.9 53,338 175.2 126,424 99.0 47,774 94.9 66,708 180.2 14,230 109.6 128,712 128.0 March 57,659 67.3 16,161 139.3 61,585 202.3 135,405 106.1 54,947 109.2 82,546 223.0 25,223 191.6 162,716 161.8 April 65,112 76.0 19,356 166.9 80,639 264.9 165,107 129.3 63,385 125.9 88,017 237.7 18,869 143.3 170,271 169.3 May 67,595 78.9 15,972 137.7 58,731 192.9 142,298 111.4 81,274 161.4 89,782 242.5 24,861 188.8 195,917 194.9 June 98,335 114.8 28,618 247.1 96,088 315.1 223,041 174.7 86,256 171.4 61,886 167.2 18,512 140.6 166,654 165.7 July 71,917 84.0 17,150 147.9 52,553 172.7 141,620 110.9 86,443 171.7 77,448 209.2 29,492 224.0 193,383 192.3 August 81,250 94.9 19,574 168.8 49,194 161.6 150,018 117.5 85,571 169.9 42,128 113.8 20,953 159.1 148,652 147.8 September.. 70,209 82.0 19,365 167.0 43,108 141.6 132,682 103.9 123,456 245.3 70,033 189.2 25,240 191.7 218,729 217.5 October 70,240 82.0 16,844 145.2 45,983 151.1 133,067 104.2 99,127 196.9 74,730 201.9 20,386 154.8 194,243 193.2 November.. 99,589 116.3 15,740 135.7 46,473 152.7 161,802 126.7 98,690 196.1 79,198 213.9 21,254 161.4 199,142 198.1 December.. 89,585 104.6 13,208 113.9 43,563 143.1 146,356 114.6 79,965 158.9 71,886 194.2 21,521 163.4 173,372 172.4 Year.. 914,045 88.9 215,030 154.5 688,003 188.4 1,817,078 118.6 951,440 157.5 857,434 193.0 254,975 161.4 2,063,848 171.1 1920 January 93,141 108.7 15,647 134.9 35,406 116.3 144,194 112.9 103,796 206.2 90,655 244.9 24,064 182 7 218,515 217.3 February... 70,130 81.9 14,198 122.4 41,645 136.8 125,973 98.7 87,086 173.0 107,162 289.5 19,964 151.6 214,212 213.1 March 90,805 106.0 17,279 149.0 56,428 185.4 164,512 128.9 97,039 192.8 125,496 339.0 25,999 197.4 248,534 247.2 April 68,048 79.4 17,063 147.1 51,689 169.8 136,800 107.1 87,588 174.0 97,187 262.5 29,076 220.8 213,851 212.7 May 63,650 74.3 17,546 151.3 62,457 205.2 143,653 112.5 64,177 127.5 84,074 227.1 14,887 113.1 163,138 162.3 June 55,200 64.5 14,663 126.4 46,113 151.5 115,976 91.1 75,225 149.5 95,699 258.5 21,463 163.0 192,387 191.3 July 66,924 78.1 19,138 165.0 43,325 142.4 129,387 101.3 60,942 121.0 93,893 253.6 24,562 186.5 179,397 178.4 August 67,225 78.5 15,708 135.4 28,594 94.0 111,527 87.3 61,321 121.8 95,159 257.0 22,624 171.8 179,104 178.1 September.. 70,699 82.5 13,883 119.7 28,599 94.0 113,181 88.6 51,388 102.1 61,163 165.2 17,226 130.8 129,777 129.1 i An additional list of 11 commodities of imports is given in the October BULLETIN. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1198 FEDERAL RESERVE BULLETIN. NOVEMBER, 1920. WHOLESALE PRICES ABROAD.1 Index numbers of wholesale prices (all commodities). [1913 = 100.] B R U F S o t q i e e a t n o u s a d r n i o e d t e t s e t r e r a v ) ( s d a 9 . - ; e l 0 ( B 3 S 2 U L S t u t i a 8 r t o a n t e a b q i n i a t s t o u s e t e u ) r i o s d c . ; o t s a f - m K ( U 4 o S in 5 d t n g a i i c t t d t i o i e o e s m d t s m - ). ; S m G t B ( F a 4 o r d u t 5 e d a i l e n s i n l c t l e t e i o c a i r e t q m e a i s n u ; l ) - e e . c B o a I m t P c i t e r a m h o s l i ) y f o . . ( ; d 4 i 0 - ( H 4 S S t t 7 a w i i v d o n q e e n n d u d n s i e o e s n ) l . k n t g s a ; - - c T J B o a o J t m p a a k ie a p n y m s n k o a ) o n . f o ( d ; o 5 f i r 6 - C m A C S ( e B 9 w o o t u n a 2 m d u s s e t t u i r i a c r m t s e s a o i l t a e t o i l m a h u c i s n n a ) s - - d ; . L C m D a t q b i a e e u o o n p n o n r a t a s t d ( a r ) o 2 . - t a f - 7 ; 2 m C S ( m D 7 t o I a a n 5 e e d l t c d p n i i c u t s a i t i o t a t r e i o t m ; t c s a - f ) s , - . 1913 100 100 100 100 100 2 100 100 100 1914 100 101 101 95 116 96 3 100 101 4100 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. September 211 221 252 360 370 319 257 185 223 200 October 212 223 264 382 388 307 271 200 222 November 219 230 271 405 436 308 280 199 227 December 226 238 276 423 455 317 288 197 240 1920. January. . 242 248 288 487 504 319 301 203 248 218 February 242 249 306 522 556 342 313 206 254 209 March 248 253 307 555 619 354 321 209 258 198 April 263 265 313 584 679 354 300 217 261 200 Mav 264 272 305 550 659 361 272 225 263 210 June 258 269 300 493 615 366 248 233 258 206 July 250 262 299 496 613 363 239 234 256 209 August . 234 250 298 501 632 365 235 236 244 209 September 226 242 292 526 660 362 230 230 241 208 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 numters are therefore cnly approximate. The latest f gures are received by cable and are subject to correction. 2 July 1, 1913, to June 30,1914=100. 3 July, 1914=100. 4 End of July, 1914=100. & Last six months of 1917. Current price studies of foreign countries fixed according to output apparently appealed show that with the exception of Australia and to the mine leaders but there was some difficulty India, the present level is in each case below in deciding upon the "datum line"—i. e., the that of last spring. In France and Italy, how- point of production above which wage increases ever, the decline which marked the summer would be made. However, after conferences months has been reversed, and prices are again between mine owners, the miners' delegates, rising. Japanese prices have fallen by almost and Government representatives, the u datum one-third from the high point of March, but in line •" was decided upon, and the wage increases the last two months the recessions have been to be allowed for output above this point agreed less marked than in the period just previous. to. Annual output of 240,000,000 tons, it was Although declines have occurred in prices in agreed, would allow for an increase of Is. per Canada, the United Kingdom, and Sweden, day, 244,000,000 tons an increase of Is. 6d. per they have been less pronounced than in the day, and so on up to 256,000,000 tons, which United States. would provide an increase of 3s. a day. This proposal was put to the miners but was rejected ENGLAND. by them by a vote of 635,098 against, and 181,- The coal strike inaugurated on October 16 428 for. Meanwhile, some of the miners' leadexceeds in importance any event of a strictly ers, such as Robert Smillie, had come out economic nature which has occurred in England frankly in favor of accepting the proposal. In since the armistice. Called originally for Sep- view of the fact that the vote was so strikingly tember 25, by a vote of 606,782 for and 238,865 against the suggestion of the Government, howagainst, it was temporarily avoided at that time ever, the strike was called October 16. by the suggestion of the Prime Minister that The strike continued until November 8, alwages be fixed according to national output. though the basis for adjustment was agreed The earlier proposal of the Government for an upon on October 28. Delay in returning to impartial tribunal to decide upon wages had work was caused by the fact that the terms of been rejected by the miners' delegates. Wages the agreement entered into by the mine owners Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

NOVEMBER, 1920. FEDERAL RESERVE BULLETIN. 1199 and the miners1 delegates had to be submitted temporary advances by the bank to the Govby ballot to the miners themselves. The agree- ernment were materially decreased. The total ment provides for an immediate wage increase floating debt, however, was £32,000,000 higher of 2s. a day. September output is made the at the end of September than a month earlier. basis or datum line of production; 6d. will be Repayment of the Anglo-French loan accounts added to the daily wage if this output is ex- for the increase. ceeded, subtracted from it if output falls short Failure of the funding operations initiated by of this figure. The 2s. increase is to be effective the treasury in the spring has revived the old until January 1, when output will be under re- issue of how to handle the floating debt. Some view again. For the future the rate of increase appear to favor a forced loan. Press reports during a given month will be fixed according to indicate the possibility of 4 per cent bonds with output for the preceding month. The increase the income exempt from supertax. As was rein wages is to be financed from export coal ported in the BULLETIN for September, powerful profits. To this extent the adjustment is along commercial interests oppose any action likely the lines suggested by the Prime Minister prior to decrease the floating debt at the risk of to the strike. New features which have been higher taxes, or tighter money. introduced are the arrangement for owners7 Discount rates were slightly easier during the profits to increase or decrease with output and week ending September 24 than in the prefor the creation of the national wages board. ceding weeks, 3-months7 bank bills being quoted The latter can not begin functioning until the at 6 \%, as compared with 6 {i~i during the week end of March, but after that time will handle before. As the end of the quarter approached, all questions connected with the adjustment of however, money was very scarce and higher wages. If output falls below the datum line, rates were obtainable. owners' profits will be reduced as well as miners' A survey of the foreign-exchange situation wages. In this way a stimulus is given to all and the trade of England with her former allies factors in the industry to increase production. since the armistice discloses some interesting Financial conditions during September were facts regarding the extent of the financial supsubstantially unchanged as compared with port which England has given the Continent August. The ratio of reserves to deposit liabil- during the past two years. It will be rememities of the Bank of England declined from 14.3 bered that in making its final report in Decemper cent for the week ending August 25 to 11.07 ber, 1919, the committee on currency and the per cent for the week ending September 29. foreign exchanges after the war recommended Coin and bullion held by the bank and the that preference be given to exports to countries treasury fluctuated somewhat above £151 ; - which could pay for them currently, since Eng- 000,000. Bank-note circulation increased ap- land herself would be expected to pay for her proximately £2,500,000 during the month, but imports on the usual short-term basis. This the currency note circulation was decreased by view was not concurred in by all interests, how- £2,200,000, leaving the issue with a margin of ever, and it seems clear that traders and bank- £14,000,000 under the limit fixed by law. ers have done considerable long-time foreign With the increase in the sale of treasury bills. financing. Deposit and note accounts. Government floating debt. Discount rates. 1920 n B o a te n s k .1 c n o C e o u r u t t t i e r s f r t s i e a c n a n a n c t d e y d - s p D u o b e t p l h i o c e s r a i . t n s d , C bu o l i l n io a n n .* d Tr b e i a l s ls u . r y ' T a e d m va p n o c r e a s r . y T in ot g a l d e fl b o t a . t- b 3 a m nk o n b t i h ll s s ' . t 6 ra m de o b n i t l h ls s . ' ing. End of— 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 £208,0C0 £1,319,000 February. 92,426 324,994 190,147 138,946 1,070,000 188,000 1,258.000 W 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 Mas' 103,614 348,316 117,784 140,955 1,062,000 221,000 1,283,000 5] June 106,658 357,356 191,715 146,382 1.050,000 244,000 1,294,000 July 106.869 361,911 133.796 151,734 1,058,000 204,000 1,262,000 August 106,294 356,012 115,955 151,529 1,067,000 183.000 1,250,000 September 108,791 353,795 127,167 151,615 1,139,000 143,000 1,282,000 1 Less notes in currency notes account. 2 Held by the Bank of England and by the Treasury as note reserve. In 1913, 12 per cent of the value of British In contrast with this small ratio for 1913, for exports went to France, Belgium, and Italy. the 18 months from January, 1919, LO July Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1200 FEDERAL RESERVE BULLETIN. NOVEMBER, 1920. 1920, 26 per cent of her export values went to Value of imports into the United Kingdom from France, these same countries. In other words, over Belgium, and Italy, quarterly, January, 1919, to July, 1920. one-fourth of British exports, when expressed [In millions of pounds sterling.] in terms of money values, went to France, Belgium, and Italy in the 18 months following Quarter ending- France. Belgium. Italy. the close of the war. Imports from these three countries into Eng- Mar. 31, 1919 8.7 0.2 3.4 land did not figure largely in the prewar trade, June 30 11.2 0.5 o o Sept 30 13.6 2.3 3.9 amounting to only 10 per cent in 1913. In Dec. 31 ... 15.3 6.3 4.1 the 18 months following the armistice, how- Mar. 31,1920 19.3 12.0 5.4 June 30 21.6 12.7 5.1 ever, when England was sending a compara- Total. 89.6 34.0 25.3 tively large proportion of her goods to these countries, she was receiving only 6 per cent of her imports from them. In the table below While England has been accumulating a are presented, on a quarterly basis, the value large favorable balance with her former allies of the goods exported by the United Kingdom on the Continent, amounting to something to each one of these countries between Janu- over £300,000,000 for the 18 months between ary, 1919, and July, 1920. January, 1919, and July, 1920, her unfavorable balance with the United States has been rapidly Value of exports from the United Kingdom to France, Bd- increased. Her total imports from the United gium, and Italy, quarterly, January, 1919, to July, 1920. States during the period were valued at £854,- [In millions of pounds sterling.] 000,000, her exports to the United States at £146,000,000. Detailed quarterly figures are Quarter ending- France. Belgium. Italy. presented below. Mar. 31 1919 . 47.3 5.5 6.9 Value of trade of the United Kingdom with the United States t June 30 41.3 18.9 7.1 quarterly, January, 1919, to July, 1920. Sept 30 45.8 19.2 8.1 Dec. 31 48.4 21.9 11.4 [In millions of pound>s sterling.] Mar 31 1920 56.8 21.6 12.6 June 30 47.4 18.6 12.5 Total exports 287.1 105.8 58.6 Quarter ending- Imports. Exports. Imports from 89.6 34.0 25.3 Balance of exoorts 197.5 71.8 33.3 Mar. 31,1919 137.2 7.4 June 30 112.4 10.8 Sept. 30 158.6 17.9 Dec. 31 134.8 29.3 Exports to France have been made on a Mar. 31,1920, 186.1 45.9 June 30 125.2 34.8 large scale ever since the armistice and show little sign of diminishing in later months. The Total.. 854.4 146.1 total for the period amounts to £287,000,000, which gives England a so-called favorable As has been pointed out by practically all balance of £197,500,000. It is impossible to investigators of the foreign exchange situation state how this trade balance has been financed, since the war, the exchanges do not correctly but it undoubtedly has taken from England a reflect the trade balances between countries, large vplume of current funds. but are greatly influenced hj domestic credit Belgium has received goods to the value of expansion. Speculative buying of exchange £105,800,000 from the United Kingdom, and likewise has been so prevalent in London and has sent in return goods to the value of £34,- New York that certain exchanges have at 000,000, leaving a balance to be credited to times been maintained at a level higher than the United Kingdom of £71,800,000. Italy either the financial or trade position of the has taken a far smaller amount than France or country justified. When such has been the Belgium, and her unfavorable balance with case, however, the improvement caused by England is appreciably smaller, amounting to fictitious demand has usually been of short only £33,300,000. duration. With these facts in mind it may be Some light is thrown on England's prospect worth while to review the fluctuations of francs, of repayment by the figures showing her lire, and dollars in London. Pegging of the imports from these countries by quarters. French, British, and Italian exchanges ceased Imports from France and Belgium have in- toward the end of March, 1919. The pound creased steadily since the armistice. In the sterling began to depreciate almost at once in case of Italy, the same rate of increase has not the New York market, although various favorbeen attained. On the other hand, Italy's able factors partially supported it during the debts to Great Britain are smaller than those spring of the year. The movement was downof France. ward, with occasional reactions, until February, Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

NOVEMBER, 1920. FEDERAL RESERVE BULLETIN. 1201 1920, when it reached its lowest value. It terms of the pound and the dollar, and conbegan to improve following the announce- tinued their downward course until May, 1920. ment that the British would repay their share They improved again for two or three months of the Anglo-French loan and under the following the conference at Lympne and prosinfluence of gold shipments from London. pects of the payment of the indemnity, but The upward movement continued until July, have been depreciating since then. when another reaction set in, and since that In view of the situation as disclosed by the time the movement has been generally down- trade figures for France, Italy, and Belgium, it ward. Although the seasonal demand for has become increasingly important to London dollars had some influence in causing the re- that conditions on the Continent should imaction it was by no means entirely responsible prove. The financing which is being done for for it. other European countries in less favorable With the removal of Government control in circumstances makes the problem even more March, 1919, lire and francs depreciated in difficult. Statist index number of wholesale prices (1913=100). Foreign exchange rates,* London on- Date. Vege- Ani- Sugar, f t o a o b d le s. f m oo a d l s. co t f e f a e . e,s F t o u o ff d s -I . - er M al i s n . - t T il e e x s - . d S r u i n es - . M ri a a t l e s - . Y N o e r w k. Paris. Italy. Berlin. B A u i e re n s o . s S h t o o l c m k . - c C u a t l t - a. 1913 100 100 100 100 100 100 100 100 2 4.8665 25.2250 25.2250 20.430 47.580 18.159 24 1914 110 100 107 105 90 97 105 98 I 1915 155 125 130 137 109 111 131 119 1916 193 152 161 169 140 152 163 153 1917 252 192 213 218 152 228 212 198 1918 248 210 238 229 167 265 243 225 1919: September 258 208 328 245 206 287 278 257 4.1629 35.7287 40. 8125 101.937 55.500 17.050 October 260 226 322 253 222 305 284 270 4.1934 35.5900 41. 6000 106.500 55.125 17. 265 November 266 226 332 258 226 325 292 280 4.1142 38. 2450 47. 7937 156. 375 56. 750 17. 676 December 270 228 336 260 234 334 296 286 3. 8646 41.4566 49. 6166 183. 333 61.110 17. 784 1920: January j 274 . 230 356 265 256 343 312 302 3. 6904 42.9375 51. 2375 239.375 63. 390 17.804 February i 297 237 415 286 267 362 329 318 3.4612 48. 2125 60.3812 327.750 69. 660 18. 208 March. 345 237 393 300 263 360 318 312 3.6907 52.3375 70.4700 304.100 64.660 18.244 April 346 265 392 315 263 354 321 311 3.9J81 63.2937 88.0000 239.500 60.125 17.935 May 351 244 473 318 273 308 311 298 3. 8462 56. 7125 76.3120 183.870 60.220 18.208 June 359 244 496 325 269 308 282 285 3.9421 48.9200 66.9550 154.700 58.190 18.081 July 343 278 425 325 276 298 277 283 3.8256 47.0425 66.1875 150. 813 56. 700 17.716 August 317 295 404 319 281 298 278 285 3. 6294 50.3375 73. 6875 171.250 57.310 17.120 September. 319 291 334 308 283 286 279 282 3.5053 52.3650 80.6190 202.875 57.773 17.391 1 Average of weekly quotations from London Times. 2 Par. The English commodity price situation con- sales have again been begun in Australia after trasts with the American in that, although in a period of five years of Government control. many ways trade conditions are similar in the Prices for certain grades of wool have declined two countries, price reduction has gone further in England from 33 J to 50 per cent from the on this side of the Atlantic than in England. high levels of last spring, and inactivity prevails According to the Statist index number, the de- in many branches of the industry. Some seccline from the peak of April amounts to 7 per tions of the fine wool trade are apparently still cent in England; the Board's index for the working full capacity, reports from the west of United States shows a decline of 14 per cent England stating that most of the firms in that since May. Cable advices from England seem section have orders to occupy their mills for to show, however, that price reductions have from 4 to 12 months. The spinning and been widespread there during October, so it is weaving trade as a whole, however, reports possible that in industries where a deadlock considerable inactivity. Conditions in the cotexisted during earlier months concessions have ton trade are equally depressed, and the Cotton been made which will lead to lower prices and Spinners7 Association has recommended a limimore active trade. The coal strike intervening, tation in output, to be made effective by shorthowever, may lead to a retardation in the fall time work on Saturday and Monday for a of prices. month following October 23. Prices for Egyp- Price trends during September were largely tian as well as American cotton have declined in the same direction as in August. Those in- radically from former high levels. The boot dustries which were most depressed and in and shoe industry is, on the whole, doing little, which prices appear to have been weakest are although reports from some regions show a cotton and wool. In the latter, free auction certain amount of trading. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1202 FEDERAL RESERVE BULLETIN. NOVEMBER, 1920. With the exception of sugar, coffee, and tea, majority of textile mills held less than two September food prices were not strikingly differ- weeks7 coal supply. ent from August pripes. Vegetable foods, In striking contrast with the situation in the according to the Statist index, increased slightly United States, where tonnage under construcand animal foods declined. British sugar prices tion has been steadily decreasing, in the United are now at approximately world levels, having Kingdom there was an increase of 153,000 tons declined from the somewhat higher levels of in the shipping under construction between last spring. Due to the fact that sugar had June and September. been bought by the Government before the Foreign trade figures for September were boom in prices occurred, the exorbitant Ameri- only reasonably favorable. Imports were can level was never reached there. slightly less than for August and exports As a result of the decline in the price of tea, slightly more. The trade balance was more the Indian Tea Association is recommending favorable than that of any month of the year that the crop for next year be no greater than with the exception of July. Comparing ex- 90 per cent of the average crops 1915-1919 ports for September, 1920, with those for the or as an alternative that proprietors cease same month last year, it is found that in spite plucking on November 15, 1920. A scheme for of the inactivity complained of by the textile the restriction of rubber production is likewise trades, exports of cotton yarns and manufacreceiving the support of growers' associations tures were over twice as large in terms of in London and the east. money this year as last. Exports of woolen Stocks of coal throughout England were re- and worsted yarns and manufactures were ported reasonably ample at the time the strike 50 per cent greater, and an increase of almost was called. Nevertheless, the Government 100 per cent had been made in the exports of gave out orders for decreased personal con- iron and steel and manufactures thereof dursumption of coal, exports were prohibited, and ing the same period. Exports of these three lighting restrictions which were effective during groups of commodities and of rubber manuthe war were reestablished. No statistics are factures were more important in the Septemavailable showing the extent of coal supplies ber returns than were coal exports. The held by metal industries and the railroads. value of the coal exported was £6,600,000 for On these depend the future activity in these the month, the value of iron and steel, etc., lines. A press report of October 19 states £10,900,000; cotton yarns and manufacthat the iron and steel trades of the country tures, £37,900,000; woolen yarns, etc., will be closed by the end of the week. On £10,900,000, and rubber manufactures, October 17 another press report stated that the £7,800,000. Value of foreien 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. 13J,061 £43,771 £9,131 24,336 i 2,002, 699 1920. January 183,498 105,880 25,464 2 22,057 676 766 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 ie7,154 106,252 20,407 17,131 655 779 May 166,816 119,319 20,200 2 22,131 738 848 June 170,491 116,352 20,124 19,048 726 745 3,578,000 July 163,312 137,452 17,848 2 22,926 750 800 August 153,255 114,903 13,368 16,970 752 709 September 152,692 117,456 13,351 18,885 ' 3,'73 i,* 000 1 Average of four quarterly estimates. Figures following are estimates taken at the end of each quarter. 2 Five weeks in the month. The index number of the cost of living com- tember, but even so does not give an accurate piled hj the ministry of labor increased three picture of total labor unemployment, since it points in September as compared with six covers only something over a million and a half points in August. An increase in the price of workers. It represents full-time unemploybread, resulting from the removal of the Gov- ment only, whereas much idleness has been ernment subsidy, occurred in October. caused in the textile and mining industries by Trade union unemployment shows a rather part-time employment. The miners7 strike pronounced increase during the month of Sep- forced something like a million men out of work Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

NOVEMBER, 1920. FEDERAL RESERVE BULLETIN. 1203 in the coal industry alone, and probably caused Just after the 1st of October, however, the a reduction in employment in many other lines coal controller announced decreased prices for in which production had not already been cur- metallurgical coke and some grades of coal. tailed. Three hundred forty-four thousand This reduction was immediately followed by men and women were registered with the em- the announcements of some of the most imporployment exchanges of the labor ministry on tant iron and steel manufacturers in France September 24. reducing prices of their products from 140 to 250 francs a ton. If price decreases are main- Percent tained in this basic industry they will ulti- Average of trade- mately have a very important effect upon percent- union age in- members prices in general in France. crease m unemcost of ployed There was a distinct change in the position of living,1 (mem- the Bank of France during September. Gold base, .bership July, 1,636,012 holdings of the bank declined steadily through- 1914. Se a p t t e e n m d b e o r f ). out the month, and note circulation steadily increased. The decline in the gold reserve, 1920. representing a net decrease of 81,000,000 January 125 2 9 February 130 1.6 francs, was due to shipments to the United A M p a r r i c l h 1 1 3 3 2 0 1 . . 9 1 States to meet the Anglo-French loan which May 141 1.1 matured in October. Weekly figures on hold- June 150 1.2 July 152 1 4 ings of gold and on note circulation are as August 155 1.6 follows: S ept em b er 161 2 2 October 164 Bank of France. 1 Food, rent, clothing, fuel, light, etc. [In millions of francs.] Figures applying to increase in cost of living are for the beginning of the month and those for trade-union unemployment are for end of month. Gold Note circulation. FRANCE. Prices continued to fluctuate in France dur- Sept. 2, 1920 j 3,612 38,333 ing September, but the general trend was again Sept. 9, 1920 3,592 38,622 Sept. 16, 1920 3,542 38,666 upward. Purchasers who had refused to buy Sept. 23, 1920 3,533 38,690 during the summer were obliged to do so, and Sept. 30,1920 3,531 39,208 they Found stocks lower than had been anticipated. This fact brought about more compe- The following table presents the financial sittition and higher prices, although there were uation of the Bank of France and the French few markets where trading was really active. Government in 1920. French financial situation. [In francs.] Bank of France. Situation of the Government. Advances to the ; r 0 e 0 G s 0 e o , r 0 l v 0 d e 0 s 's) 0 re 0 S s 0 i e , l 0 v r 0 v e 0 e r s 's)( D 0 e 0 p 0, o 0 s 0 i 0 ts 's ; C 00 i t r 0 i c o ,0 u n 0 la 0 - 's) p m G u o e o r f n p v t t o e h r s f e n o e - s r 0 r G m e 0 o v 0 e v , e 0 n e n 0 t r u 0 n 3 e ' - s) 0 P 0 d 0 u e , b 0 b l 0 t i 0 c 's) p 3 P e r p r e r e i p n c r e e t c e t u o e . f a n l t war2 (000,000's) 1913, average.. 3,343 5,665 320 35,000 86.773 1920, end of— January... 4 3,602 255 3,172 37,583 25,300 885 206,616 58.75 February. 4 3,603 251 3,277 37,889 25,800 794 57.60 March 4 3,606 247 4,039 37,569 26,300 859 58.82 April 4 3,608 244 3,469 37,688 25,300 1,057 57.40 May 4 3,609 240 3,751 37,915 26,050 857 59.35 June 4 3,610 241 3,653 37,544 26,000 908 57.25 July 43,611 248 3,416 37,696 25,550 1,109 233,729 58.90 August 4 3,612 255 3,267 37; 905 25,800 882 56.30 September 4 3,531 255 3,307 39,208 26,600 1,120 54.15 1 Includes Treasury and individual deposits. 2 Under the laws of Aug. 5 and Dec. 26, 1914, July 10, 1915, and Feb. 16, 1917. 3 From indirect taxation and Government monopolies. 4 Not including about 1,978 million francs held abroad. » As of Dec. 31, 1919. ' Foreign debt calculated at par. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1204 FEDEKAL RESEBVE BULLETIN. NOVEMBER, 1920. As the table indicates, returns from indirect shortage of meats in France this fall, and meat taxation and Government monopolies were prices are very high. The Government is smaller in August than in July, in spite of the urging the people to reduce meat consumption newly enacted taxes which went into effect and is also arranging for a large importation of July 1st. The August returns were, however, frozen meats and for increased consumption of 203,000,000 francs greater than the budget esti- fish. The sale of veal has been prohibited in mate for that month. Receipts for September order to increase the beef supply next year. exceed those for August by 238,000,000 francs, By the middle of October the food situation in but they fall 322,000,000 francs below the bud- France was becoming so serious that exports of get estimate for September. This difference is fish, milk, butter, cheese, and potatoes were due to the fact that the new tax on total busi- prohibited by cabinet order. ness turnover brought in only 292,791,000 francs The following table shows the index numduring September instead of the estimated bers of the Statistique G6n6rale: monthly yield of 700,000,000 francs. As this tax has only been in force three months it Group index numbers—France. seems probable that receipts will increase when [Bulletin de la Statistique Generale.] it is fully understood and thoroughly enforced. [1913=100.] Receipts from the registration tax and from r s e e o x t m p u e e r c n t o s a f t f i r o t o h n m e s t G a h n o e d v t e a p r x a n r m o tl n e y n t o t m t m a a l d o e b n u o u s p p in o e f li o s e s r s t t u e h x r e n c s e o m e v d e a e r l d l . Date. f A m oo n a d i l - . V f t o a e o b g d l e s e - . c S c o a o u f n f c g e o d a e a r , . , F ( o 2 o 0 d ) s . M er i a n l - s. T ti e le x s - . d S r u ie n s - . m R r ( i 2 a a a 5 l w t ) s e . - The discussion of the 1921 budget is now 1913 100 100 100 100 100 100 100 100 under way. The original estimates for 1921 ex- 1914 103 103 106 104 98 109 99 101 1915 .. . 126 126 151 131 164 132 145 145 penditure total 50,000,000,000 francs, but the 1916 162 170 164 167 232 180 199 206 1917 .. . 215 243 201 225 271 303 302 291 finance minister, M. Francois Marsal, and the 1918 286 298 231 281 283 460 420 387 rest of the cabinet are at work on a reduction 1919, end of— September.. 387 308 264 334 279 476 402 381 of the estimates. The French Parliament will October 402 337 268 353 295 554 403 405 November... 424 351 271 369 323 620 415 435 meet in the middle of November to vote upon December.... 432 380 278 375 357 649 419 454 the budget. 1920: January . 452 432 419 440 413 787 465 525 Meanwhile subscriptions are being received M Fe a b rc r h uary.... 5 4 0 8 0 4 4 5 7 1 4 6 4 4 3 3 6 9 4 4 7 9 4 8 4 46 4 0 4 8 88 2 4 8 5 5 4 0 8 3 5 60 6 0 1 for the 1920 6 per cent internal loan, although April 522 511 429 506 498 953 587 646 Mav . 480 480 424 472 459 841 601 614 they are not regularly open until October 20. June .. 482 400 392 434 428 734 517 540 The treasury offered to pay interest on sub- July 501 370 405 432 469 746 500 548 August 515 359 399 432 475 737 524 558 scriptions sent in after August 25 at the rate September... 531 412 544 487 468 715 540 558 of 5.75 per cent a year until November 30, 1920 (the date when subscriptions close). This All coal prices in France are still controlled offer resulted, it is said, in the immediate pay- by the Government, and different rates are ment of several billion francs to the treasury. charged to different classes of consumers. The offering of this latest issue of bonds at 6 Coal for domestic purposes is sold at the lowest per cent has depressed the price of 3 per cent price, coal for central heating plants, small shops rentes (which are not convertible into the new and factories, and for hygienic or food services loan) during September, and they were quoted at a somewhat higher price, and coal for other as low as 53 francs 15 on the 28th of the month. purposes at higher rates still. The price paid French exchange fluctuated slightly through- by French consumers for German coal and coke out September, with the general level on the is fixed by the Government. The purchaser last Thursday of the month slightly less favor- of French, Saar, or Belgian coal has to pay, able to France than on the last Thursday of beside the original purchase price, a surtax to the month previous. the Government, which varies from 75 to 125 From the point of view of the French con- per cent of the price, according to the grade of sumer, the most serious of the price increases coal. The buyer of English or American coal, which took place in France during September of the other hand, receives a drawback on each were those of foodstuffs. Government control ton of the coal he purchases. The drawback of sugar was removed September 1, and prices on English coal is 100 francs a ton, but that on rose, although it was hoped that the price would American coal has recently been increased to not continue excessive because of the large 150 francs. In this way the price paid for coal beet-sugar crop this season. (The Government from all sources is made as nearly equal as still sells a limited amount of sugar at lower possible. In the case of special industries, prices for the use of aged persons, children, and however, the Government fixes coal prices at invalids.) The Government also transferred slightly lower rates. The grapegrowers of part of the bread subsidy to the shoulders of southern France who ferment their own wine the public on September 1. There is a distinct have just received such a reduction, and a Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

NOVEMBEE, 1920. FEDERAL RESERVE BULLETIN. 1205 decree of the last of September decreases the livered by Germany to the allies and during price of metallurgical coke from 245 francs a September 1,936,865 * tons. Of these amounts ton to 175 francs. At the same time the price France received about 1,555,000 tons in of "boulets" and of lignite briquettes was re- August, and about 1,478,000 1 tons in Septemduced for family use, and the price of all grades ber. In addition to the increased deliveries of coal for use by central heating plants, small of coal from Germany, France is receiving shops and factories, and hygiene and food more from her own mines. Reconstruction services was decreased 60 francs a ton. is proceeding satisfactorily in the departments These reductions were possible because on of the Nord and Pas de Calais. The first October 1, France was better supplied, with delivery of coal from one of the rebuilt pits in coal than at any other time since the beginning Lens was made in September, and an output of the war. At the July conference it was of from 30 to 40 tons a day is expected from it agreed that Germany should deliver to the before long. It will probably take three or four allies 2,000,000 tons of coal a month for the years, however, to bring the mines back to ensuing six months. She is, according to the their prewar level of production. terms of the Versailles Treaty, to be credited M. Le Troquer, French Minister of Public for this coal by the Reparations Commission Works, has recently announced that stocks at the rate of the prevailing market price in of coal carried by the railroads have risen from Germany. It was arranged at this conference, 180,000 tons in January to 800,000 tons in however, that the allied countries were to September and that other stocks have inreceive the kinds and qualities of coal which creased proportionately. they should specify, and in return were to pay The most recent statistics on coal (not includa premium of 5 gold marks per ton of coal. ing coke or lignite) available in France follow: This premium is invested in food for the German miners. The allies also declared their Coal available in France. Tons. willingness to make advances to Germany 1913, monthly average. 4, 541, 750 1920: equal in amount to the difference between the January 3, 991,486 market price of coal in Germany and the ex- February 3, 954,301 port price of coal in German ports, or in Eng- March 3, 781,544 lish ports, whichever should be higher. If April 3, 603, 602 May 3,352,177 the total deliveries from Germany to the allies June 4,392, 217 for August, September, and October have not July 4,238,132 reached 6,000,000 tons by November 15, the August 4, 295,515 allies announced at this same conference that September 1-20 2,808,154 they would proceed to occupy the Ruhr, or Complete figures on French foreign trade some other portion of German territory. This for September have not yet reached this arrangement seems to have brought about the country. Cabled figures on total imports and desired results. The Reparations Commission exports for the month show a slight decrease announces that during August 1,975,000 tons as compared with the previous month. of coal, coke, and lignite briquettes were de- \ i Subject to revision. Foreign trade of France.1 [In thousands of francs.] Imports. Exports. Food. ma R te a r w ials. f a a M r c ti t a c u n l r u e e - s d . Total. Food. ma R te a r w ials. f a a M r c ti t a c u n l r u e e - s d . P p a o rc s e t. ls Total. 1913 average 2.. 151,465 412,144 138,169 701,778 154,841 301,420 47,182 573,351 1919 average 3.. 719,122 1,101,811 660,610 2,481,543 80,805 161,401 440,314 43,577 726,097 1920: January 538,365 985,410 478,408 2,002,183 84,561 187,626 415,007 35,204 722,398 February.. 653,630 1,336,987 651,299 2,641,916 150,060 347,480 767,423 58,866 1,323,829 March 871,857 1,478,987 772,007 3,122,851 114,223 349,521 834,031 39,884 1,337,659 April 665,799 1,398,592 813,216 2,887,607 125,678 353,344 844,901 52,987 1,376,910 May 547,825 1,193,960 644,911 2,386,696 103,355 348,361 726,654 31,658 1,210,028 June 4 558,951 1,302,867 726,856 2,588,674 216,849 421,735 1,100,931 69,862 1,809,377 July 5 August 6... 723,749 1,171,091 905,613 2,800,453 210,888 440,482 1,631,883 116,255 2,399,508 2,627,805 2,150,862 September. 1 Not including gold, silver, or the reexport trade. » Calculated in 1913 value units. 3 Calculated in 1918 value units. * January-June, 1920, figures are calculated in 1918 value units. French foreign trade figures are originally recorded in quantity units only, and the value of the trade is calculated by applying official value units to the quantities imported and exported. Normally the monthly statements of trade appear computed at the rates of the year previous, and only at the end of the year is the trade evaluated at the prices prevailing during that year. Because of the disturbed price conditions in France this year, however, it was not until July that the 1919 price units were decided upon and applied. 5 Monthly French foreign trade figures are published only in cumulative form, and as the value rates used were changed in July it is impossible to give separate figures for that month. 6 Calculated in 1919 value units. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1206 FEDERAL RESERVE BULLETIN. NOVEMBER, 1920. the proposed price, and if the difference (the net GERMANY. profit) did not exceed what was considered There is no index number by which price lair and suitable profit in the business before fluctuations in Germany may be traced for the war, the price was considered just. Gerthe period of the war or the period since the man business men have pointed out that armistice, nor has it been easy since 1914 to interest on capital invested, the compensation find complete series of price quotations. There for risk, and the wages of management are is, however, some interesting material avail- very difficult to define. In the case of comable on the prices which have been fixed by modities where it seemed impractical to set a the German Government since the beginning maximum price, merchants were often reof the war. The most valuable sources availa- quired to prove their profits "just" before the ble on this subject are articles on "Laws courts upon the basis just explained. The care affecting the Economic Situation" by Johannes with which such prices were controlled is illus- Muller, and other articles in the Jahrbiicher trated by a decree of January 25, 1917, which fur Nationalokonomie und Statistik, articles states that charges for shoe repairing may only in the Frankfurter Zeitung, and decrees pub- be high enough to yield, in consideration of the lished in the Reichsanzeiger. Unfortunately, costs, a suitable profit, and that excessive however, the files of these periodicals are in- charges may be redressed by an appeal to the complete for 1916 and 1917 and there are gaps courts. which it is impossible to fill. Of the prices fixed by the Government, Price fixing in Germany began with a law those first and most thoroughly applied were of August 4, 1914, which authorized the the prices for the cereal crops. On November Government to fix maximum prices for arti- 6, 1914, the Bundesrat fixed prices for oats for cles of daily necessity, especially food and 32 different cities, the price for different regions fodder of all kinds, as well as for raw materials, of the country to be that of the nearest city and materials for heat and light. Violators of of the 32. In December prices for wheat, rye,, the price regulations were made subject to a and barley were also fixed by the same method. fine of 3,000 marks or to 6 months' imprison- Prices for the region of Berlin have been as ment. (The penalties were later increased.) follows: Maximum prices were first set for the cereal Wholesale cereal prices—Germany. crops, then for other agricultural products, [In marks per ton.] and for metals. By the end of March, 1915, maximum prices were fixed for wheat, oats, [Region of Berlin.] rye, barley, bran, potatoes, sugar, wool and wool products, ammonia, aluminum, aluminum Government prices. products, antimony, old bronze, copper, copper Averproducts, old brass, brass products, nickel, age,1 Dec. For the crops of— 1913. 24-31, nickel products, bronze, and tin. Price regu- 1914. lations increased from that time on, and maxi- 1915 1916 1917 1918 1919 1920 * mum prices were also fixed for butter and Rye... 164 220 220 220 270 305 405 1,400 margarine, oil seeds and vegetables (peas, Wheat 199 I 260 260 260 290 325 455 1,540beans, lentils, cabbages, carrots, and so on), Oats.. 162 214 300 300 270 300 405 1,350^ Barley 156 220 300 300 270 300 1,350 for meats, flour, macaroni, marmalade, fats, news print paper, matches, fertilizer, chemicals, 1 Statistisches Jahrbuch fur das Deutsche Reich. cement, coal, and iron and steel products. 2 Minimum price. The Government tried in all cases to fix Prices for the 1920 crop were originally prices in relation to production costs. Ger- fixed at 1,100 marks per ton for wheat, and at man writers on the subject, in criticizing 1,000 marks for other grains, with the promise the system of maximum prices, say that in that an index number for costs of production some cases the set price was dictated from should be calculated and prices revised, if Berlin without proper consultation with ex- increased costs warranted it. The index perts in the industry concerned. In theory, number was made, taking costs in January r however, the fixed price was based upon a 1920, as 100. It rose to 169.24 as of June 1, "just price" submitted by the producers of and the Government accordingly fixed the the article in question. This "just price" prices indicated in the above table. was calculated as follows: The cost of produc- Price regulations for agricultural products tion (including purchase of raw materials, were as a rule enforced b}^ awar committees" management expenses, general charges, in- appointed for the purpose. Prices for industerest on capital, compensation for risk, and trial products were sometimes regulated simply wages of management) was subtracted from by committees, but as the war progressed,, Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

NOVEMBER, 1920. FEDERAL RESERVE BULLETIN. 1207 manufacturers were often forced to unite in members of this second association were reassociations regulated by " control commit- quired to take, pay for, and sell the stocks tees" responsible to the Government. The allotted to them according to the directions of earliest of these associations were established the "main apportionment committee." in the coal industry. In July, 1915, the The effect of such forced associations upon State authorities were authorized to unite in German industry will not soon disappear. associations the owners of hard or brown coal The Government has been authorized to mines, either according to districts or kinds "socialize" both the coal and potash indusof coal produced. These associations regulated tries. In the iron and steel industry the the output of the mines and marketed their "Steel Works Union" has been succeeded by product. Coal syndicates were formed for the "Eisenwirtschaftsbund," which is to reguthe Rhenish-Westphalian district, for lower late the production and marketing of iron and Saxony, Saxony, Silesia, and central and east steel products through a committee consisting of Germany. u Just selling prices" for coal were 22 representatives of the producers (both the decided at meetings of these associations, and employers and employees), 8 of trade, and 14 the Goverment fixed prices in accordance with of the consumers. In case the committee can their recommendations. The trend of the "just not come to an agreement on any question, the prices" of the Rhenish-Westphalian Syndicate Minister of Industry may decide the matter. has been as follows: Government control of agricultural products is gradually being relaxed because of the Coal prices (Rhenish-Westphalian Syndicate1). urgent demands of the public. It is hard to [In marks per ton.] say whether it ever was very successful. A writer 1 in the Jahrbiicher fur Nationalokono- January, mie and Statistik for 1918 says that an official 1914. April, 1918. April, 1920. estimate placed the number of dealers who systematically violated price regulations at Bituminous coal (nut I and 500,000. "Can you wonder at it," says he, II) 14.25-15.00 27.60-29.40 230.90-232.70 Coking coal 12.25-13.00 25.50-27.30 196.10-198.70 "when you remember that the official price of F A o n u th n r d a r c y i te c o ( k n e ut I) 2 15 0 . . 0 5 0 0 - - 1 2 7 2 . . 0 0 0 0 3 3 5 2 . .4 4 0 0 - - 3 3 4 7 . . 2 8 0 0 2 2 7 5 8 4 . . 6 6 0 0 - - 2 2 8 7 0 7 . . 2 3 0 0 butter is 2.50 marks per pound, and that 15 to 18 marks are paid in the contraband trade V 1 Frankfurter Zeitung and Deutscher Reichsanzeiger. As near as can be determined here, the following are the commodities which have already been The completeness with which "essential" released from control: Vegetables (except potaindustries were regulated is illustrated by the toes), fruits, coffee and tea, meats, margarine, forced associations in the shoe industry. In fats, edible oils, fodder, nonferrous metals, March, 1917, the Imperial Chancellor was leather, textiles (except linen and artificial silk). authorized to unite manufacturers of every The control of bread, sugar, milk, and home-prokind of shoe material in associations (with or duced cheese will continue through the winter. without their consent). for the purpose of regulating the manufacture and sale of shoes, according to the raw materials available and JAPAN.2 the needs of the people. A decree of March 24, According to reports from Yokohama, the 1917, established 11 of these associations and silk market was remarkably firm during the appointed a "control committee" for the pur- first three weeks of September, and stocks of pose of giving detailed instructions as to raw silk were increasing. The general attitude production, sale, and selling prices. This of dealers was still, however, one of uncertainty. committee was required to divide the available The improvement is due to the organization raw materials among the members of the asso- by representative dealers in raw silk of the ciation and adjust the apportionment of army Imperial Raw Silk Corporation. The new and navy contracts. It could also demand company has a capital of 50,000,000 yen, and that one member of the association give up its purpose is to facilitate the financing of stocks of raw materials, half-manufactured exports of raw silk. In order to assist in the products, and finished products, as well as recovery of the silk industry the Japanese Govmachinery, to another member. If necessary, ernment has agreed to make loans from its it could confiscate property. In July, 1917, Savings Bank Department through the Industhe chancellor was authorized to unite retail trial Bank to the Raw Silk Corporation. dealers in new shoes of all kinds into associations for the purpose of apportioning the 1 Jahrbiicher fur National okonomie, 1918, vol. 55, p. 311. stocks placed at their disposal by the "Shoe 2 The September BULLETIN contained a statement to the effect that the July excess of exports over imports amounted to 3,000,000 yen. This Manufacturing and Selling Association." The was an error due to a mistake in the cable. The trade figures for the month of July were: Imports, 157,000,000 yen; exports, 154,000,000 yen. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1208 FEDERAL RESERVE BULLETIN. NOVEMBER, 1920. These loans are not to exceed 50,000,000 yen, From January through July, 1920, the value and will run for a period of two years. Inter- of Japanese exports was less than that of est is to be paid at the rate of 5.6 per cent per imports into Japan. From May on, however, annum (5 per cent to the Savings Bank Depart- this "unfavorable" balance steadily decreased, ment, and 0.6 per cent as the commission of and in August exports exceeded imports by the Industrial Bank). As this rate is very low, almost 52,000,000 yen. The September balconsidering the present state of the market, silk ance was also " favorable/' the excess of exdealers feel that the arrangement is a favorable ports being 36,000,000 yen. The monthly one. trade figures are shown in the following table: The following quotations for Yokohama raw silk spot (for 100 kin) will be helpful in indi- [000 omitted.] cating the condition of the raw silk market. Excess of Yokohama raw silk spot. Month. Exports. Imports. im or p e o x rt p s o ( r — ts ) Date of cable. Yen. (+) Aug.2 .... 1,100 Aug. 16 1, 260 1920. Yen. Yen. Yen. Sept. 2 1,130 January 176,347 204,701 - 28,354 February... 174,288 270,630 - 96,342 Sept. 16 1,180 March 193,134 328,500 -135,366 Oct. 2 1, 500 April 218,792 296,520 - 77,728 Oct. 18 1,500 May 192,918 293,533 -100,615 June 183,407 218,317 - 34,910 Oct. 23 1,500 July 154,320 156,658 - 2,338 August 174,487 122,645 + 51,842 Cotton yarns are still weak. The price September.. 154,000 118,000 + 36,000 dropped steadily from the middle of September to the middle of October, but recently cabled Detailed figures in regard to Japanese forfigures for Osaka cotton yarn futures indicate eign trade for August which are now available slight improvement. show that the increased exports of that month were largely caused by exports of cotton goods, Osaka cotton yarn futures (bale of 400 pounds). for which the ministry of agriculture and commerce is now issuing permits. Cotton-yarn Date of cable. Yen. exports in August were valued at 20,970,000 Sept. 16 284. 90 yen and cotton cloth at 31,800,000 yen. The Sept. 24 264.00 Oct. 2 242. 50 total value of raw silk exported in August Oct. 8 232. 40 reached 33,700,000 yen, as against 72,040,000 Oct. 18 241.00 yen for the same month last year. Oct. 23 267. 90 Group index numbers—Australian Commonwealth—Bureau of Census and Statistics. [July, 1914=100.] Date. Me c ta o l a s l . and T le e a e x t t t h c i . l e e r s , , p c r u o A l d g tu u ri r c - a t l s. pr D od a u ir c y ts. G to r b o a a c n c e d c ri o e . s Meat. m B a u t i e ld ri i a n l g s. Chemicals. July, 1914 100 100 100 100 100 100 100 100 1915 117 93 202 127 110 150 116 149 1916 154 131 113 124 127 155 136 172 1917 . . 213 207 110 116 131 155 194 243 1918 220 232 135 121 138 147 245 315 1919. September 182 225 200 138 149 152 259 263 October... . . . .. 186 243 236 141 152 154 271 272 November 184 254 238 142 151 132 278 267 December .. . . . 186 259 224 142 156 132 281 266 1920. January 189 273 227 143 156 147 282 268 February 192 283 226 149 161 149 287 272 March .. . 205 281 226 162 160 126 298 280 April 205 277 234 169 192 160 298 280 Mav 214 265 252 177 197 170 307 297 June 214 260 261 ( 187 195 208 307 297 July 211 252 244 188 193 261 307 283 A ugust 209 251 238 189 193 284 312 282 September .. 211 222 231 209 196 273 295 276 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1209 NOVEMBER, 1920. FEDERAL RESERVE BULLETIN. Group index numbers—Canadian Department of Labor? [1913=100.] Date. f G o a d r n a d d i e n r s . A m n a e i n m a d t a s l . s pr D od ai u r c y ts. t F a v a r b e u n g le i d e t s - s . f O o t o h d e s r . Textiles. l H ea e i t t d c h e . e s r , , Metals. m Im e p n l t e s - . m B lu a u m t i e ld r b i i e a n r l g s . : , F li u g e h l t i a n n g d . c D h c a r a e n u l m d s g . i s - • 1913. 100 100 100 100 100 100 100 100 100 100 100 100 1914 114 107 100 99 104 102 105 96 101 100 94 106 1915 136 104 105 93 121 114 110 128 106 97 92 160 1916 142 121 119 130 136 148 143 167 128 100 113 222 1917 206 161 149 233 180 201 168 217 174 118 163 236 1918. 231 197 168 214 213 273 169 229 213 147 188 250 1919. September. . . . 232 201 193 195 227 283 256 171 231 183 200 197 October 232 180 204 178 228 290 252 165 225 188 201 198 November 240 176 221 240 230 298 252 171 232 194 201 181 December 251 182 230 240 232 306 231 181 232 224 209 189 1920. January 269 195 228 265 245 316 237 191 235 232 212 190 February 275 195 216 290 251 321 245 199 231 243 215 189 March 280 198 206 295 254 322 222 210 237 268 215 194 April 291 200 196 316 264 366 239 214 237 268 245 201 May 301 207 189 358 275 323 215 213 237 294 257 203 June 302 206 183 338 274 314 186 207 238 295 279 206 July . 292 211 194 295 283 305 183 209 242 282 294 218 August 271 204 198 142 277 300 173 209 243 285 298 218 September 254 202 211 190 261 296 169 207 259 273 296 217 1 Unimportant groups omitted. Group index numbers—Calcutta, India, Department of Statistics. [End of July, 1914=100.] Date. B m ri i u a a n i l t g l s e d . - - a M r t t u f i a a r c c n e l - d u es - . Metals. s H k a i n i d n d e s s . C m tu o f a a r t c n e t - o u s. n - co R t a to w n. m tu J f a u a r n c e te u - s. - O t t i e l t e h x s e - . r I | Oils, j R u a te w . se O e i d l s. Tea. Sugar.Pulses.Cereals. f O o t o h ^ e s r . End of July, 1914. 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 August, 1918 317 83 240 328 240 96 95 179 1119 September, 1918.. 314 75 217 331 217 105 116 93 1134 September, 1919.. 214 156 215 199 215 131 109 292 1177 1920. January 118 225 226 253 356 214 181 153 159 125 200 377 207 167 204 February 118 217 215 233 364 185 164 158 155 123 190 363 191 158 199 March 127 218 222 211 351 179 150 159 135 118 166 321 160 151 192 April 114 201 219 209 357 158 170 161 116 119 163 377 159 156 185 May 128 215 248 160 365 135 142 164 123 120 169 511 150 157 183 June 131 233 244 116 364 144 147 164 119 83 171 482 149 156 180 July 139 235 249 100 364 132 151 168 119 89 169 503 159 151 188 August 142 235 257 99 360 139 163 168 115 91 167 477 160 154 185 September 158 237 245 105 347 154 163 164 115 105 179 456 170 154 186 1 Includes pulses. Group index numbers—Sweden, Svensh Handelstidning. [1913=100.] Date. Ve f g o e o t d a . ble A f n o i o m d. al a R g r a r i w i a c l u s m l f t o a u t r r e e - . Coal. Metals. m Bu a i t l e d r i i n a g l. P p a u p lp e . r Hi le d a e t s h e a r n . d Textiles. Oils. 1913-14 100 100 100 100 100 100 100 100 100 100 1914 i 136 101 114 123 109 104 118 103 111 1915 151 140 161 177 166 118 116 158 116 120 1916 152 182 180 266 272 165 233 229 166 149 1917 181 205 198 551 405 215 267 206 247 212 1918 221 419 304 856 398 275 300 195 1919. September... 255 386 323 893 213 282 235 ! October 230 360 323 893 213 281 292 223 j 308 170 November... 230 361 317 840 225 280 316 228 I 328 204 December... 241 362 319 237 294 343 258 ! 350 204 1920. January 248 328 317 864 248 295 258 353 204 February— 273 305 319 936 259 371 476 269 380 226 March 270 304 318 960 291 367 682 268 380 275 April 265 284 320 1,008 283 367 767 263 368 275 May 269 283 320 1,069 324 367 788 252 374 275 June 250 273 311 1,252 318 381 778 212 368 303 July 252 277 312 1,252 293 388 767 202 336 303 August 271 307 310 1,117 286 388 756 191 328 322 September.. 273 312 1,085 273 388 753 180 310 340 1 Average for six months ending Dec. 31,1914. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1210 FEDERAL RESERVE BULLETIN. NOVEMBER, 1920; Group index numbers—Italy. Prof. Bachi. [1913=100.] C m e a e r n a e d t a s l . s s O f t o u t o h ff d e s - r . Textiles. M m i a e n n t e a d r l a s l . s g O o t o h d e s r . C m a e e n r a e d t a s l . s s O f t o u t o h ff d e s - r . Textiles. M m i a g n n t e a d r l a s l . s g O o t o h d e s r . 1913 100 100 100 100 100 1920. 1914 102 84 96 100 96 January 363 396 Ill 671 418 1915 132 93 113 207 133 February 365 399 840 857 443 1916 156 135 184 380 197 March 381 418 962 996 48£ 1917 215 171 326 596 266 April 395 494 1,064 1,076 535 1918 .. . 315 229 475 75C 391 May 441 499 840 i,088 525 June . ... 445 511 742 917 534 1919. July 434 508 759 903 542 September 319 357 429 442 342 August 445 510 794 957 540 October 326 366 499 459 341 September 459 520 837 1,040 541 November 328 371 633 568 351 December 338 373 658 584 405 m Group index numbers— United States, Bureau of Labor Statistics. [1913=100.] Date. C c l l o o t t h h s i n a g n . d l F ig u h e t l i a n n g d . M pr e m o ta d e l u s ta c a l t n s. d m b L u a u a i t m l n e d r d b i i n a e g l r . a C n h d e m dr i u c g al s s . fu H g rn o o i o s u h d s s i e n . g la M n i e s o ce u l s - . 1913 100 100 100 100 100 100 100 1914 98 96 88 98 101 99 98 1915 99 92 94 94 109 99 99 1916 123 114 142 100 157 115 117 1917 181 175 208 124 198 145 153 1918 240 163 181 152 221 195 192 1919. September 306 181 160 229 173 262 217 October 313 181 161 231 174 264 220 November 325 179 164 236 176 299 220 December 335 181 169 253 179 303 220 1920. January 350 184 177 268 189 324 227 February 356 187 189 300 197 329 227 March 355 192 192 325 205 329 230 April 353 213 195 341 212 331 238 May 347 235 193 341 215 339 246 June 335 246 190 337 218 362 247 July 317 252 191 333 217 362 243 August 300 267 193 328 216 363 240 September 278 284 192 318 222 371 239 WHOLESALE PRICES IN THE UNITED considerable decline from those of the preced- STATES. ing month, but the South American grade used in making the index number was quoted at the Extent of the price decline.—The Board's same figure as for the preceding month. Forindex number of wholesale prices declined less eign hides continued to decline, as did coffee, rapidly in September than in August. Prices tea, and pig tin. as a whole were 150 per cent above the 1913 Export prices.—The accompanying chart level during July, 134 per cent in August, and shows clearly that the fall in the prices of 126 per cent in September. The total decline goods which are exported is proceeding confrom the peak of May, 1920, amounts to 14 per siderably more rapidly than the fall in the cent. general domestic price level. Both in the up- Decline in imported goods.—Prices of imported ward swing of prices from April, 1919, to May, goods continue to decline more rapidly than 1920, and in" the downward swing since then, those of exported goods. Among the imports, prices of export goods have fluctuated in producers7 goods felt the decline more than raw advance of prices of home produced goods and materials. This was probably due in large of the all-commodities index. This seems to measure to the rapid fall in sugar and rubber indicate the important influence of our export prices. Although certain grades of silk con- trade upon the general price level. tinued to decline, some quotations showed an Amo.ng goods exported the greatest declines advance over August prices. In the same occurred in raw materials. Cotton is the most way, quotations for Australian wools showed a important commodity in the index, and with Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

NOVEMBER, 1920. FEDERAL RESERVE BULLETIN. 1211 the decline in the price of upland middling at have declined less. This is because, in spite of New Orleans from $0.3456 per pound in August declining prices in the agricultural field, prices to $0.2875 in September, the index number as a of coal, pig iron, and oil have continued at old whole was lowered. Other important exports levels or are higher. Among consumers' goods to show weakness were wheat, lumber, and practically all commodities, including food copper. Coal and pig iron advanced, and products, textile fabrics, and shoes, have repetroleum was unchanged in price. ceded in price. Producers' goods do not figure as largely in During recent weeks the tendency in the our export trade as raw materials or consumers' steel industry has been to make price recessions. goods, and the price movement during Sep- Decline in demand from the automobile tember was not particularly noteworthy. Gaso- industry gave the first impetus to the moveline and cottonseed oil advanced; fuel oil, ment, but since then reductions in the demand steel products (an average of four important from the building and shipping trades and from heavy steel products), and copper wire de- the railroads have caused weakening in the clined slightly, and leather somewhat more markets for heavy steel. The independent heavily. mills have made the concessions, as their prices Finished consumable goods which we export were considerably higher than those of the did not decline in price, but instead showed a United States Steel Corporation. Premium small increase. In this index wheat flour, prices have disappeared along with abnormal lard, and kerosene, all of first-rate importance demand. Prices of lighter steel products conin our foreign trade, advanced in price. Other tinue to be sustained. commodities, such as pork products, cotton With regard to coal prices the Federal fabrics, and shoes, declined. Reserve Agent in Philadelphia reports that Difference in index numbers, Federal Reserve " prices are still high but have eased off" dur- Board and Bureau of Labor Statistics.—Ac- ing recent weeks. Export demand continues cording to the Board's index, as well as the heavy, but it is too early to judge of the effect index of the Bureau of Labor Statistics, prices of the British coal strike upon prices here. of consumers' and producers' goods are declin- Reports from oil districts show that prices ing more rapidly than raw materials. The are unchanged, although the Federal Reserve two indexes disagree somewhat as to the actual Agent at Dallas states that buyers of crude oil price level, the Board's index registering 226 are showing an unwillingness to pay prefor September, on the basis of 1913 prices = miums. Posted prices are firm. As yet there 100, while the Bureau of Labor Statistics reg- is no evidence of the influence of the decline in isters 242. This difference may be due in part automobile demand upon gasoline prices. to the difference in the size of the two indexes, Agricultural prices.—Important agricultural and also to the difference in methods of weight- products have almost uniformly declined during them. A large index, such as that of the ing recent weeks. This statement applies to Department of Labor, is apt not to be so sensi- live stock as well as to cereals, although cattle tive to fluctuations in prices as a smaller one. and hog prices have not been so much affected Although larger, the index of the Bureau of as lamb prices. Labor Statistics reached a level in the spring Textiles and leather.—Prices continue to desome 10 points higher than that reached by the cline in the cotton, wool, and leather markets. Board's index. Certain commodities are given The Boston Federal Reserve Agent reports somewhat different weights in the two index wool prices during the current month more numbers, and where this has occurred in the depressed than a month previous. The cotton case of commodities whose prices have been crop in the Eleventh Federal Reserve District abnormal, it has made for a difference in the has suffered a 40 per cent depreciation in two index numbers. market value between seed time and harvest, Consumers' goods decline more than raw according to the agent in Dallas. Sole and materials.—Consumers' goods are leading the upper leather are both quoted at lower figures downward turn in prices, according to the for October than for September and demand Board's index. Raw materials as a whole has not improved. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1212 FEDERAL RESERVE BULLETIN. NOVEMBER, 1920. Index numbers of wholesale 'prices in United States—Federal Reserve Board. [Average prices 1913=100.) Date. Go d o u d c s e d p . ro- Imported. Exported. Consumed. Raw r ia m l a s t . e- Pr g o o d o u d c s e . rs' Co g n o s o u d m s. ers' All. -I- 1913. January 100 105 100 100 100 105 100 February 100 104 100 101 99 105 99 100 March 100 103 99 101 100 105 101 April 101 101 99 101 101 103 101 May 100 100 99 100 100 102 100 June 100 100 100 100 101 101 100 July 100 99 100 98 101 102 100 August 100 101 99 101 101 100 101 101 September 101 100 102 101 102 98 101 101 October 101 103 100 102 96 101 100 November 102 98 100 95 101 99 December 99 97 98 91 99 97 1919. January 197 168 I 200 195 195 192 196 195 February 191 168 I 192 190 190 191 188 189 March 193 163 | 194 191 196 185 188 191 April 198 165 j 194 196 201 181 197 196 May 204 172 211 201 209 184 202 202 June 204 180 ! 214 202 208 192 202 203 July 214 176 I 224 211 217 200 211 211 August 221 174 | 219 218 217 206 224 218 September 215 170 i 212 212 211 203 216 211 October 215 174 226 211 213 207 214 212 November 222 179 i 242 217 220 213 219 219 December 231 203 245 225 229 223 225 226 1920. January 244 212 255 240 245 236 240 242 February 244 216 252 242 242 247 240 242 March 250 218 256 247 246 263 241 248 April 265 242 264 263 263 274 257 263 May 266 246 262 264 263 274 261 264 June 260 226 256 257 258 265 255 258 July 253 208 248 249 249 251 250 250 August 238 182 229 234 237 235 229 234 September 231 164 211 227 233 225 218 226 INDEX NUMBERS OF WHOLESALE PRICES inDEXMMBERSOFHMOLBSALtPRICES INTHE UNITED STATES- J919.I9Z0 INTlfE UttlTED STATES -1919,1920. fllL CommadUies. — producers'Goods. Goods imparted'. '••• Cbnsumers'Goodg. • Goodsexported* 300\ AV 1 E — R : A GE 1 PRICE 1 LEVE 1 L OF 19 1 1 3 =? 1 1 0 0. \3OO 300 AVERAGE PRICE LEVEL 0F!9i3=I00. 300 230 280 Z80 280 260 260 260 260 240 240 240 240 220 220 220 220 200 200 200 200 ISO ISO 180 ISO y 160 160 160 160 140 I4O I4O 140 120 120 120 120 IOO IOO IOO IOO 1_ 1913 1920 1919 •1920 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

NOVEMBER, 1920. FEDERAL RESERVE BULLETIN. 1213 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. pr F o a d r u m cts. p A ro n d i u m c a t l s. pr F o o d r u e c st ts. p M ro in d e u r c a t l s. m To a t t a e l r i r a a l w s. Producers' Co g n o su o m ds e . rs1 t ( L i n s B a t u i u b c m r o s e r b a i e S n u r d t ) o a e . - f x July, 1914 102 106 97 91 103 100 September, 1914 104 110 96 92 101 101 108 104 September, 1915 101 104 92 97 99 99 99 99 September, 1916 138 125 95 121 122 143 129 128 September, 1917 216 195 129 171 182 201 175 183 September, 1918 256 220 143 183 206 201 j 213 207 September, 1919 240 215 227 184 216 212 | 226 221 January, 1920... 291 213 273 190 239 245 | 259 248 February, 1920.. 278 206 315 194 240 246 I 256 248 March, 1920 288 200 348 197 247 246 j 263 253 April, 1920 304 196 367 224 260 263 ! 280 265 May, 1920 314 179 367 234 260 271 285 272 June, 1920 301 186 363 245 261 262 i 279 268 July, 1920 287 184 359 250 258 251 j 272 263 August, 1920.... 259 181 351 258 251 238 250 250 September, 1920 232 186 344 270 247 224 240 242 In order to give a more concrete illustration of actual 1920, to September, 1920, compared with like figures for price movements, there are also presented in the following August of previous years. The actual average monthly table monthly actual and relative figures for certain com- prices shown in the table have been abstracted from the modities of a basic character, covering the period January, records of the United States Bureau of Labor Statistics. 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 i w ca in g t o e . r, goo C d h t i o c a c g h o o . i ce, st h e e e a rs v , y C n h a ic t a iv g e o. Year and month. Ayerage Average Rela- Average Rela- Average Rela- Average Rela- price per Rela- Average Relaprice per tive price per tive price per tive price per tive tive price per tive bushel. price. pound. price. bushel. price. bushel. price. pounds. price. pound price. July, 1914 SO. 7044 114 $0.1331 105 $0. 8971 103 $0. 8210 $9.2188 108 $0.1938 105 September, 1914. .7748 126 .0838 66 1.1364 130 1.1069 112 9. 7313 114 .2100 114 September, 1915 .7269 118 .1053 83 .9811 112 1.0760 109 8.9500 105 S .2650 144 September, 1916 .8522 138 .1532 121 1.6080 184 1. 5344 156 9. 8000 115 .2600 141 September, 1917 2.0613 335 .2160 170 2.2213 254 2.1775 221 14.9875 176 ! .3300 179 September, 1918 1. 5313 249 .3578 282 2.2169 254 2.2363 227 18. 4100 216 j .3000 163 September, 1919 1.5410 250 .3078 242 2. 5350 290 2.2385 227 16. 8050 198 i .4638 252 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 i 176 I .4025 219 March, 1920 1.5515 252 .4060 320 2.7550 315 2.5000 253 14.4000 169 i .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 August, 1920.... 1. 5310 249 .3380 266 2. 5500 292 2.4735 251 15.3500 180 .2850 155 September, 1920 1.2938 210 .2706 213 2. 4903 285 2. 4919 253 15.2500 179 .2840 154 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 c i o o u , r 1 e - d f . Heml Y o o ck rk , . 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 l e i , d , a e N n w e t a h w 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 t i u n m m n i a i n t n i e o . , us, Year and month. p A p r o v ic u 1 e e 0 n r a 0 p d g e s e . r p R t r i e i v c l e a e - . p A p r y 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 y ic e f e 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 y ic e f e r e a p e g t e . e r p R t r i e i v c l e a e - . l p A o r n y 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 y i t c h 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 $2.2000 100' September, 1914 9.0188 107 .4583 97 24.2500 100 42.0000 94 5.1794 102 2.2000 100 September, 1915 7.7000 91 .5714 121 20. 5000 85 38. 5000 86 5.1529 102 2.?000 10O September, 1916 10.7750 127 .6857 146 23.7500 98 38.0000 85 5.6625 112 2.5000 114 September, 1917 18.4250 218 1.3714 291 30. 5000 126 57.0000 128 6.1303 121 3.3000 150 September, 1918 20.0700 237 1.4365 305 63.0000 141 6.9000 136 4.1000 186 September, 1919 18.2100 215 1.2182 259 43.0000 177 95.0000 213 8.4020 166 4.5000 205 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 273 July,1920 15. 8875 188 .9091 193 57.0000 235 160.0000 359 9.4580 187 6.0000 273 August, 1920 15. 7350 186 .8727 185 57.0000 235 157.0000 352 9.6087 190 6.0000 273 September, 1920 17.0688 202 .8364 178 57.0000 235 157.0000 352 10.4363 206 7.1000 323 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1214 FEDERAL RESERVE BULLETIN. NOVEMBER, 1920. Average monthly wholesale prices of commodities-—Continuec Copper, ingot, Lead, pig, Petroleum, crude, Coal, Pocahon- Coke, Connells- electrolytic, desilverized, Pennsylvania, 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 September 1914 3.0000 100 1.7250 71 .1238 79 .0388 88 1.4500 59 13.0000 88 September 1915 2.S500 95 1.6750 69 . 1775 113 .0490 111 1.6000 65 14.7500 100 September 1916 . .. 4.0000 133 2.7500 113 .2775 176 .0650 148 2.3000 94 18.3100 125 September, 1917 3.9080 130 11.7500 482 .2525 161 1.0380 236 3.5000 143 42.7500 291 September 1918 4.6320 154 6.0000 246 .2600 165 .0805 183 4.0000 163 32.0000 218 September 1919 4.5920 188 .2220 141 .0609 138 4.2500 173 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 August 1920 6.4800 216 15.5500 637 .1900 121 .0898 204 6.1000 249 48.1000 327 September, 1920 7.2800 243 15.3125 628 .1869 119 .0816 185 6.1000 249 48.5000 330 Cotton yarns, A Steel billets, Steel plates, Steel rails, Worsted yarns, northern cones, Bessemer, tank, Pitts- open hearth, 2-32's cross- 10/1. Pittsburgh. burgh. Pittsburgh. bred. 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 $0.2150 97 $0.3050 108 $19.0000 74 $0.0113 76 $30.0000 100 $0.6500 84 September 1914 .1700 77 21.0000 81 .0120 81 30 0000 100 6600 85 September 1915 .1700 77 .3100 110 24.1000 93 .0135 91 30.0000 100 .8500 119 September, 1916 .2750 124 .3700 131 45.0000 174 .0350 236 35.0000 117 1.2000 154 September' 1917 .4200 190 .4800 170 66.2500 257 .0800 541 40.0000 133 1.7000 219 September 1918 .6100 276 .4900 174 47.5000 184 .0325 220 57.0000 190 2.1500 277 •September' 1919 .5903 267 .5700 202 38.5000 149 .0253 171 47.0000 157 1.7500 225 January, 1920 .7271 329 .5600 199 48.0000 186 .0274 185 50.7500 169 2.2500 290 Februa*rv 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 Mav 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 Julv 1920 .7009 317 .5700 202 62.5000 242 .0338 228 54.5000 182 1.7500 225 August, 1920- . .... .6310 285 .5500 195 61.0000 237 .0325 220 54.5000 182 1.7500 225 September, 1920 .5429 245 .5100 181 58.7500 228 .0325 220 54.5000 182 1.6000 206 Flour, wheat, st B e g e e o e r o s f d , , c C n a h a r i t c c i a v a s e g s o , . Coffee, Rio, No. 7. st ( a 19 n 1 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 ° i w n f a i Y r ti e o n t r g e k s . o t, il, S N ug e a l w a r t , e Y g d r o 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 September, 1914 .1438 111 .0763 69 5.9400 130 .1905 115 .1200 97 .0680 159 September, 1915 .1350 104 .0675 61 5.3313 116 .1447 87 .1200 97 .0506 119 September^ 1916 .1375 106 .0988 89 8.4250 184 .1900 114 .1200 97 .0637 149 September, 1917 .1900 147 .0913 82 11.2625 246 .2675 161 .1300 105 .0823 193 September, 1918 .2450 189 .0959 86 10.2100 223 .3281 197 .1750 142 .0845 198 September 1919 .2275 176 .1663 149 11.6200 254 .3480 209 .2200 178 .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 July, 1920 .2550 197 .1306 117 13.6688 298 .3769 227 .2600 211 .1910 447 August 1920 .2550 197 .0936 84 12.2350 267 .3725 224 .2600 211 .1490 349 .September, 1920. .2600 201 .0819 74 12.5938 275 .3634 219 .2750 223 .1426 334 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 As was the case during the previous period, changes in rates have occurred prevailing during the 30-day period ending October 15, 1920, in the various only in a relatively small number of centers, and there are approximately cities in which the several Federal Reserve Banks and their branches are an equal number of increases and decreases. These changes in rates are located. A complete description of the several types of paper for which scattered and are not pronounced, either for particular centers or for particuquotations are given will be found in the September, 1918, and October, lar types of paper. In the great majority of centers rates remain unchanged. 1918, FEDERAL RESERVE BULLETINS. Quotations for new types of paper Present rates continue higher in almost all centers than rates during the will be added from time to time as deemed of interest. same period of 1919. Discount and interest rates prevailing in various centers during 30-day period ending Oct. 15, 1920. Prime commercial paper. Ordinary Bankers' acceptances, Collateral loans—stock exchange loans to District. City. Customers. Open market. In l t o e a r n b s a . nk 60 to 90 days. or other current. l C o a a t n t s le . S w r e e a c c r u e e e r t h i c e p o d . t u s b , se y s b c e o u L c n s u i t b d r o e s e m d r a t e y b n r d y s certificates 3 d 0 a t y o s . 90 m 4 o n to t h 6 s. 3 d 0 a t y o s . 90 m 4 o n to th 6 s. Indorsed. ind U or n s - ed. Demand. 3 months. m 3 o n to th 6 s. of e d in ne d s e s b . t- O L. C. . C. H. X. H. L. c. H. L. C.H. nL. C. H. L. C. L. C. . C. H. L. C. H. L. a H. L. C. C. N N o o . . 2 1 . . . . N B B u e o w f s f t a o l Y n o ork1 6 6 6 7 7 6-7 7 7 8 8 8 J 7 8 8 f 8 7f 8 7 8 7 4 6 6 6 6 7 7 J 6 7 i 4 6 6 1 1 ? 5 6 | 1 6 6 * * 6 6 6- 7 7 ? 8 7 8 6 6 7 4 6 - 6 7 8 6 7 7 4 6 6 41 6 6 4 •tr1 N N N N N o o o o o . . . . . 3 7 5 4 6 . . . . . . . . . . J C C N C N A B P B R P a h i h l i e a a i i t c e t n r c l i w s l i k t c m v a t l c h s h s i a a n e i b m m v o i g O d n l t n u i a n a o e n o o l r g n r v l l l a n r g e h p e d i e t d h l a a i h l n m e ia s 6 6 6 6 6 6 6 6 7 6 6 J 7 6 ^ - - 7 7 7 6 8 7 7 6 7 6 6 | 74 7 7 7 6 6 7 6 - 4 8 8 7 7 8 1 J 7 7 7 6 f J 7 4- 6 8 4 8 8 7 7 8 i 4 8 7 7 7 6 6 7 4 J - - 7 8 8 8 8 8 8 7 7 8 6 7 7 6 6 6 7 6 6 6 6 6 6 6 7 6 6 6 4 7 6 - 6 6 6 7 6 6 6 6 - 7 7 4 8 8 6 6 8 7 6 6 4 1 * 7 7 7 6 7 6 6 6 1 74 7 6 6 7 6 -8 4 3 S 8 7 7 6 6 7 6 6 * 1 | | 74- 7 6 6 6 7 8 1 i ^ 6 6J 4 74 7 -8 r 6 i - 7 8 - 7 6 6 7 6 6 7 7 8 8 8 7 6 7 8 8 6 6 6 J 4 7 6 7 6 6 6 7 6 6 6 7 J 74 6 7 8 7 7 -8 7 7 8 8 8 6 8 8 7 7 7 6 4 7 7 6 6 6 6 7 6 6 7 1 | 7 7 - 7 7 7 7 7 f 6 7 6 8 -8 8 8 8 8 7 7 6 6 6 7 6 6 4 5 6 6 7 6 6 6 6 6 6 7 < 6 6- 7 6 7 6 7 7 6 6 6 7 * 4 Detroit 6 7 7 8 7| 7 6 64 6J 64 7 7 7 6 7 No. 8.. St. Louis 6* 7 7 8 6J 6 7 8 6§ 7 Louisville 6 6 6 6 Memphis2 Little Rock 8 7 8 7 8 7 No. 9... Minneapolis 7| 7i 8 74 61 64 61 8 74 81 7 No. 10.. Kansas City 8 6 8 6 8 6 82 6 Omaha 8 7 7 9 7 9 7 84 8 10 8 64 Denver 8 6 6 8 7 8 6 9 7 8 6 No. 11.. Dallas 8 7 7 7 6J 8 6 61 8 6 5* El Paso .0 6 10 6 8 7 8 8 7 8 8 6 10 7 10 10 10 8 10 6 Houston 7 6 7 6 64 6 8 6 8 6 7 No. 12.. San Francisco 8 6 8 6 81 8 81 7 8 7 6 64 6J 61 8 6 7 6 7 7 6 7 Portland 7 6 7 6 5i 54 51 51 6 6 4i 41 4i 6 6 6 6 7 Seattle 8 64 8 7 818 8 81 8 8 7 64 8 7 8 6J ? Spokane 8 7 8 7 8 64 8 7 8 7 Salt Lake City... 8 7 8 7 81 8 8 7 8 7 9 7 8 7 Los Angeles 81 5 81 6 7 5 61 7 7 8 6 8 6 8 6 7 8 8 1 Rates for demand paper secured by prime bankers' acceptances—high, 7; low, 5f; customary, 6. 2 No report. 7 to Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1216 FEDERAL RESERVE BULLETIN. NOVEMBER, 1920. PHYSICAL VOLUME OF TRADE. duction during September was practically the same as during August, but increased slightly during October. The unfilled orders of the United States Steel Corpora- In continuation of tables in the October FEDERAL REtion at the close of September and October showed a SERVE BULLETIN, there are presented in the following decrease as compared with August, 1920, and a contables certain data relative to the physical volume of trade siderable increase over the corresponding months of 1919. The January, 1919, issue contains a description of the Receipts of lumber at Chicago and St. Louis showed a methods employed in the compilation of the data and the slight increase during the month of September but were construction of the accompanying index numbers. Beconsiderably less than for September, 1919. The proginning with this issue, stocker and feeder shipments are duction of eastern white pine and North Carolina pine shown in addition to live-stock movements. Receipts showed a substantial increase over August. 1920, and a and shipments of lumber at St. Louis have also been added very large increase as compared with September, 1919. and are combined with receipts and shipments of lumber Western pine showed a decrease during September, but at Chicago. is well above the figure for September, 1919. A con- After showing some indication of increase in activity siderable decrease is shown in the production of Douglas during August, the woolen industry during September fir and southern pine, both when compared with last showed signs of inactivity. The amount of wool consumed month and the same month last year. California shipduring the month was about 6 per cent less than that for ments of citrus fruits showed a further seasonal de- August and about 40 per cent less than for September, 1919. cline, the figure being considerably less than last month However, there was a slight tendency for the percentage and for the same month last year. Shipments of deciduof idle woolen machinery to decrease on October 1 as comous fruits were marked by a seasonal increase, being pared with September 1. It is to be noted that in each considerably greater than for August, 1920, and for Sepcase the percentage of idle woolen machinery is very mucn tember, 1919. Receipts and meltings of sugar during greater than during the corresponding month of last year. September at North Atlantic ports showed a very great Cotton consumption showed a still further decrease during decrease, both when compared with August, 1920, and September from the August figure and was somewhat with September, 1919. Stocks of raw sugar at these ports, less than during September, 1919. There was a correwhile substantially in excess of September, 1919, showed sponding decrease in the number of cotton spindles active a decrease when compared with August, 1920. during the month. Imports of raw silk during September were almost one-fourth less than for August and less than Receipts and shipments of live stock at 15 western one-third of imports during September, 1919. markets were in excess of those for August, but considerably less than for September, 1919. Stocker and feeder The production of bituminous coal during September shipments from 35 markets during the months since Febexceeded the August figure by about 6 per cent and the ruary of 1920 showed a decrease every month when com- September, 1919, figure by about 8 per cent, while the pared with the corresponding months of 1919, but it is to production of anthracite coal during September was conbe remembered that 1919 shipments were far in excess of siderably less than for August, 1920, and for September, normal. Receipts of grain and flour at 17 interior centers 1919. Crude petroleum production also showed a falling during September, although considerably less than for off during September, but still remains substantially September, 1919, showed a substantial increase over above the figure for September, 1919. Pig-iron produc- August, 1920. tion showed a slight decline for September when compared with August, although the daily average for September was The railroad net-ton mileage during August was conslightly greater, and showed a considerable increase over siderably in excess of that for July, 1920, and for August, September, 1919, toward the close of which month the 1919. The tonnage of vessels cleared during September strike in the industry commenced. Pig-iron production decreased materially when compared with August, but showed a small increase during October. Steel-ingot pro- was considerably above the figure for September, 1919. Live-stock movements. [Bureau of Markets.] Receipts. Shipments. C c m a a l a t v t r l e k e s e , a t 6 s n . 0 d m H a o r g k s e , t 6 s 0 . S m h a ee rk p e , 6 ts 0 . H m m o u a r l s r e e k s s e , t a 4 s n . 4 d nil C c m a a l a t v t r e l k e s e , a t 5 s n 4 . d m Ho a g rk s, e 5 ts 4 . S m h a e r e k p e , t 5 s 4 . H m m o u a rs l r e e k s s e , a t 4 s n . 4 d T k o i t n al d , s a . ll Head. Head. Head. Head. Head. Head. Head. Head. Head. Head. September, 1919 2,376,680 2,403,250 3,810,254 140,848 8,731,032 1,150,303 862,550 2,472,438 135,724 4,621,015 1920. January 1,868,723 5,275,412 1,560,051 138,541 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 6,387,5.29 591,691 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 1,542,150 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 1,234,022 1,421,00.9 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 32,199 7,235,972 789,953 1,295,936 768,172 33,539 2,887,600 July 1,657,743 2,837,685 2,000,758 35,668 6,531,854 721,328 1,095,470 1,015,612 37,152 2,869,562 August 1,952,086 2,516,240 2,561,661 73,423 7,103,410 869,849 953,088 1,459,150 69,971 3,352,058 September 2,279,345 2,435,589 2,826,693 57,468 7,599,095 1,079,170 931,261 1, 581,680 60,414 3,652,525 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1217 NOVEMBER, 1920. FEDERAL RESERVE BULLETIN. 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. September, 1919 1,871,042 I 186 1,704,944 78 | 2,890,831 212 88,003 191 6,554,820 142 1920. January 1,400,031 | 3,912,449 178 1,035,591 90,662 197 6,438,733 139 February 1,068,092 ! 114 2,440,154 119 948,116 76,048 168 4,532,410 105 March... 1,203,499 119 2,910,909 132 900,299 57,880 126 5,072,587 110 April 1,040,903 103 2,150,281 98 928,191 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 August 1,459,565 145 1,818,245 83 1,688,719 124 55,371 120 5,021,900 109 September 1,736,009 172 1,597,622 73 1,893,312 139 38,950 85 5,265,893 114 SHIPMENTS. September, 1919 872,541 214 502,211 104 1,855,639 367 202 3,313,375 231 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 March 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 August 640,295 157 627,670 130 899,342 179 52,163 127 2,219,470 155 September 819,371 202 540,812 112 1,027,510 204 40,890 100 2,428,583 Shipments of stockers and feeders from 35 markets. C c a a tt l l v e e a s n . d Hogs. Sheep. T k o i t n al d , s a . ll Ca c t a t l l v e e a s n . d Hogs. Sheep. J i T k o i t n a d l, s . all 1918. 1919. July.... 269,179 40,492 210,332 520,003 October 830,825 106,625 1,384,404 2,321,854 August 413,411 114,510 523,944 1,051,865 November 714,662 88,994 859,162 1,662,818 September. 599,272 114,024 1,099,386 1,812,682 December 462,767 67,730 723,975 1,254,472' October 693,588 115,227 1,238,810 2,047,625 November.. 618,135 100,571 762,595 1,481,301 Total, 1919 5,263,993 879,915 6,928,409 13,044,926- December.. 364,016 76,372 358,959 799,347 1920. 1919. January 346,430 80,719 300,449 727,598' January. 362,205 48,704 227,732 638,641 February 237,939 82,981 140,219 461,139' February... 262,722 46,445 130,653 439,820 March 240,121 104,962 135,246 480,329J March 273,558 85,741 135,505 494,804 April 242,996 72,834 267,664 583,494 April 386,286 125,096 205,550 716,932 May 291,895 66,144 252,221 610,260> May 439,123 95,322 158,775 693,220 June 270,053 42,156 226,696 538,905 June 269,545 49,398 221,474 540,417 July 217,292 25,826 322,869 565,987 July 234,200 43,243 340,059 617,502 August 279,402 34,479 567,430 881,311 August 394,586 49,808 1,037,971 1,482,365 September 474,852 44,483 789,773 1,309,108 September. 606,881 72,809 1,502,391 2,182,081 Exports of certain meat products. [Department of Commerce.] [Monthly average, 1911-1913=100.] Beef, canned. Beef, fresh. an B d e e o f t , h p e i r c c k u le re d d , . Bacon. Ha d m e s r s a , n c d u r s e h d o . ul- Lard. Pickled pork. Pounds. t R iv el e a . - Pounds. R ti e v l e a . - Pounds. t R iv el e a . - Pounds. t R iv el e a . - Pounds. t R iv el e a . - Pounds. t R iv e e la . - Pounds. g£- Sept., 1919 1,213,709 183 7,285,951 587 3,523,887 132 57,179,511 341 18,209,239 122 36,960,364 ' 84 2,792,439 63 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 March 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 1,024 12,526,669 1,010 2,563,702 96 60,730,935 363 21,277,089 143 45,069,517 102 3,962,649 90 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 August 1,231,070 186 343,352 28 2,152,982 81 23,333,156 139 9,360,469 63 31,020,802 : 71 2,257,511 51 September 244,261 37 1,964,543 158 1,613,657 60 41,371,561 247 8,997,124 60 46,326,353 105 3,279,902 74. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1218 FEDERAL RESERVE BULLETIN. NOVEMBER 1920. Receipts of grain and flour at 17 interior centers. [Chicago, Cleveland, Detroit, Duluth, Indianapolis. Kansas City, Little Rock, Louisville, Memphis, Milwaukee, Minneapolis, Omaha, Peoria, s 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. Tota fl l o g u r r a .1 in and Bushels. R tiv el e a . - Bushels. R tiv el e a . - Bushels. Rela- Bushels. R tiv el e a . - Bushels. R tiv el e a . - Bushels. Rela- Barrels. R tiv el e a . - Bushels. t R iv e e la . - September, 1919.... 9,953,295 16,267,145 72 26,721,0 5,446,3711 492 5,294,256 74 123,682,097 159 3,073,034 157137,510,750 159 1920. January 25,074,624 93 24,,1:39,094 108 20,925,941 104 4,378,610 396 3,298,544 46 77,816,813 100 2,298,692 117 88,160,927 102 February 18,115,324 7:26,051,855 124 20,575,654 109 3,263,686 316 2,470,622 37 70,477,141 97 2,059,421 113 79,744,536 99 March 18,007,798 6724,306,196 10819,149,624 95 3,548,739 321 2,928,440 4167,940,797 8"7" 11,617,544 83 7'55,,2:19,745 87 April 15,260,236 5' 11,326,509 12,952,593 64 2,914,553 263 2,245,881 31 44,699,772 57 888,423 45 488,,6197,676 56 May 20,510,063 7612\ ;:107,950 54 16,724,389 83 3,758,507 340j2,690,076 38 55,790,985 72 11,913,075 98 6144,399,823 74 June 21,020,640 78 27',, :251,166 12114,260,053 7113,177,770 28712,721,367 38 68,430,996 88 2,113,979 108 80,057,876 92 July 29,714,399 11100 20,824,268 18,734,180 9313,096,026 280 2,659,921 37 75,028,794 96 2,052,110 105 84,263,289 97 August 43,039,021 160 9,840,320 30,728,748 152 3,191,103 28813,007,508 42 89,806,700 115 1,949,339 99 98,578,726 114 September...46,181,275 17120,696,955 92 31,031,569 154 5,571,428 503|6,630,856! 92 110,111,283 141 1,843,954 94 118,409,076 137 1 Flour reduced to its equivalent in wheat on basis of \\ bushels to barrel. Shipments of grain and flour at 14 interior centers. [Chicago, Cleveland, Detroit, Duluth, Kansas City, Little Rock, Louisville, Milwaukee, Minneapolis, Cmaha, Peoria, St. Louis, Toledo, Wichita; shipments of flour not available for Cleveland, Detroit, Louisville, Omaha, Toledo, and Wichita.] Wheat. Corn. Cats. Rye. Barley. Total grain. Flour. Tota f l l o g u ra r. i n 1 and Bushels. R tiv el e a . - Bushels. R tiv el e a . - Bushels. R tiv el e a . - Bushels. R tiv el e a . -| I I Bushels. R tiv el e a . - Bushels. Barrels. §£*- Bushels. September, 1919. 37,844,148 245 6,624,129 4716,656,000 110 2,318,680 328 2,943,217 75 66,386,174 134 4,757,850 140 87,796,499 136 1920. January 17,514,087 11412,3326,051 8715,822,099 104 3,685,914 5212,007,718 5151,355,869 104 4 140,314 122 69,987,282 108 February 14,114,215 9811,9977,640 9113,073,089 92 2!;, 113,505 320 1,306,340 36 42!:, 584,789 9213156,962 100156,791,118 94 March 11,027,336 7111,1165,894 ~:4,243,957 94 31,062,530 433 1,574,887 40 41',074,604 83!2960,175 87,54,395,392 84 April 11,058,643 72 371,811 38 8,691,440 57 81!,811,500 1,2451,651,509 42 35i:,584,903 721 702,132 50 43,244,497 67 May 20,720,121 134 939,145 !0,444,288 135 6i;,977,479 9"8"6" 1i,:488,387 38 55»:, 569,420 112 2 877,122 85 68,516,469 106 June 20,242,046 131 10; 088,237 7112,805,056 84 5i,,428,886 76: 1,905,225 49 501;,469,450 102|3 725,330 9167,233,435 104 July 19,002,099 123 100,527 64 11,345,429 75 41,476,238 632 22:,092,672 54 46>,, 016,965 9313767,678 111)62,971,516 97 August 24,934,816 162 260,144 4412,814,067 84 21!,880,003 407 2,231,851 57 491,120,881 99!3 605,105 10665,343,854 101 September...28,700,593 284,075 4412,690,866 84 4!,339,057 613 3,556,180 9155;.,570,771 112|3 187,454 94 69,914,314 108 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 available for Seattle and Tacoma.] [Compiled from reports of trade organizations at these cities.] [Monthly average, 1911-1913=100.1 Wheat. Corn. Oats. Rye. Barley. Total grain. Flour. Total f lo g u ra r i .* n and Bushels. R ti e v l e a . - R ti e v l e a . - Bushels. R ti e v l e a . - Bushels. I t R iv e e la . - 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. 1919. August... 28,700,593 186 6,284,075 4412,690,866 84 4,339,057 613 3,556,180 9155,570,771 112 3,187,454 94 69,914,314 108 1920. January.. 5,711,009 491,759 42 2,663,274 56 2,643,611 1,8611,29', 78513,807,492 6111,561,693 150 20,835,111 February— 4,898,690 244,393 38 2,331,246 53 3,212,668 2,4231,315,291 85• 1"3.3,002,288 61I 1,102.606 11317,964,015 70 March.... 6,486,745 51 203,649 34 3,646,727 77 4,119,986 2,9001,300,871 78 166,,7'57,978 7744i1:,752,860 168 24.645,848 90 April 5,441.434 43 317,555 37 1,546,590 3"3" 33,440,350 2,421 685,054 4112,2 *,4.30,983 55 843,916 6,228,605 59 May 10,621,723 84 767,332 22 2,382,271 505,117,836 3,602 556,764 3419,445,896 8611,301,211 !5,301,346 92 June 13,374,721 106 878,334 53 3,194,897 67 66,;506,053 4,5791,191,767 72 26,145,772 1151,486,365 142 32,834,415 120 July 18,710,633 149 305,542 93 3,499,101 745,048,019 3,553 2,098,083 126 32,661,378 1441,660,849 159 40,135,198 146 August 28,098,022 223 576,842 44 2,671,365 56 13,407,799 2,398 2,289,791 138 38,043,819 1681,390,077 133 44,299,166 162 1 Flour reduced to its equivalent in wheat on basis of 4§ bushels to barrel. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

NOVEMBER,, 1920. FEDERAL RESERVE BULLETIN. 1219 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. Rye. Barlev. Total grain. 1919. August 17,396,269 155,491 2,216,989 578;250 5,414,183 25,761,182 1920. J amiary 8,485,491 711,501 2,398,639 2,397,156 2,587,543 16,580,330 February 6,634,682 948,239 1,571,209 2,671,743 2,340,787 14,166,660 March..! 6,280,682 851,287 1,351,457 2,389,321 1,891,862 12,764,609 April 7,704,155 967,475 389,958 1,944,350 2,031,983 13,040,921 May 10,781,927 437,521 819,790 1,889,965 1,071,920 15,001,123 June 8,492,819 459,568 901,756 2,035,334 1,193,082 13,082,559 July 11,923,745 744,167 1,323,940 1,275,554 3,187,611 18,455,017 August 13,915,892 1,097,945 1,532,272 777,445 4,052,189 21,375,743 NOTE.—Figures for San Francisco include also stocks at Port Costa and Stockton. Cotton. [New Orleans Cotton Exchange.] [Crop years 1911-1913=100.] Sight receipts. Port receipts. Overl m an e d n t m . ove- Ameri t c a a k n in s g p s i . nners' St i c o n l c o t k e s s e r i a o o t r f p m t o o o r w t n s n t s a h n . a d t Bales. R ti e v l e a . - Bales. R ti e v l e a . - Bales. R ti e v l e a . - Bales. R ti e v l e a . - Bales. R ti e v l e a . - 1919-20.1 | August ! 327,001 26 238,271 26 49,630 47 302,238 67 1,412,048 120 September ! 632,902 50 260,698 28 26,138 25 300,001 66 1,501,805 127 October i 1,835,273 146 1,029,331 112 110,202 105 621,784 137 2,340,881 199 November ! 2,445,698 195 1,178,443 128 245,237 233 1,155,324 254 2,616,383 222 December ! 2,218,773 177 1,069,693 116 242,940 231 1,214,337 267 2,765,040 235 January I 1,583,473 126 982,030 107 205,233 195 793,453 175 2,470,496 210 February J 1,050,964 90 725,515 85 138,084 141 374,093 88 2,510,482 213 March 796,632 64 621,808 68 108,573 103 270,269 59 2,276,737 193 April I 552,943 44 499,187 54 48,565 46 276,805 61 2,148,038 182 May 360,607 29 289,809 32 57,661 55 214,678 47 1,913,407 162 Season total I 12,432,856 7,299,667 66 1,674,828 133 6,365,990 117 1,461,000 124 1920-21. August 305,418 159,586 25,322 251,841 1,365,397 116 September. 761,740 443,149 17,324 254,460 1,607,602 136 i Figures of sight receipts revised. California shipments of citrus and deciduous fruits. [October, 1920, on, California Fruit News and Bureau of Markets.] [1911-1913=100.] Total I Oranges. Lemons. Total citrus fruits. deciduous fruits. Carloads. Relative. Carloads. Relative. Carloads. Relative. Carloads. September, 1919 .... 1,840 75 414 102 2,254 79 6,781 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 3,294 135 1 576 389 4,870 171 1,263 July i 2,822 115 664 164 3,486 122 3,179 August i 1,707 70 751 185 2,458 86 7,239 September [ 1,409 58 464 115 1,873 66 9,021 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1220 FEDERAL RESERVE BULLETIN. NOVEMBER, 1920. Sugar. [Data for ports of New York, Boston, Philadelphia.] [Weekly Statistical Sugar Trade Journal.] [Tons of 2,240 pounds. Monthly average 1911-1913=100.] Receipts. Meltings. c R lo a s w e o st f o m ck o s n a th t . Receipts. Meltings. c R lo a s w e o st f o m ck o s n a th t . Rela- Rela- Rela- Rela- Rela- Rela- Tons. tive. Tons. tive. Tons. tive. Tons. tive. Tons. tive. Tons. tive. 1919. 1920. September 262,137 142 292,000 159 45,531 26 April 310,580 169 307,000 167 91,765 53 May 254,616 138 286,000 156 60,381 35 J M F a e a n b r u c r a u h 1 r a 9 y 2 ry 0. 3 2 3 3 0 1 5 8 6 , , , 5 5 6 3 5 6 2 4 7 1 1 1 8 1 8 4 3 2 3 2 1 3 6 8 3 9 1 , , , 0 0 0 0 0 0 0 0 0 1 1 8 5 9 2 7 9 3 8 8 7 8 5 , , , 9 1 6 8 5 8 6 3 5 2 5 5 2 0 1 J J A S u u e u n l p y g e t u e s m t ber 3 3 3 1 8 0 0 0 6 1 8 9 , , , , 3 3 3 3 2 0 1 1 8 2 3 8 2 1 1 1 6 6 5 0 4 8 9 3 3 2 1 1 2 8 6 9 5 7 4 , , , , 0 0 0 0 0 0 0 0 0 0 0 0 1 1 1 7 5 7 8 4 6 7 9 1 1 4 0 7 2 2 4 5 0 , , , , 6 0 3 6 9 2 4 4 9 7 0 2 4 2 6 7 1 5 0 3 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 September, . 21,574 27,021 72,616 190,580 April 7,644 3,996 27,029 98,517 J M F a e a n b r u r c a u h r a y ry 1920. 3 8 1 , , , 7 8 3 7 6 0 2 6 0 2 1 4 4 7 , , , 8 9 9 1 1 0 9 0 0 4 2 1 9 7 4 , , , 3 8 6 0 7 6 3 4 0 1 1 1 0 4 6 3 0 5 , , , 4 5 9 4 5 2 3 9 7 J A J S M u u e u a l n p y g y e t u e s m t ber. 3 2 3 3 3 3 3 3 2 9 , , , , , 4 5 9 1 1 7 2 6 9 5 3 2 2 7 8 3 4 2 1 6 0 4 7 9 , , , , , 1 9 9 3 6 7 0 6 9 5 4 6 3 6 4 1 1 6 9 9 1 1 8 4 7 7 1 , , , , , 9 1 7 4 0 0 9 6 9 8 4 7 3 7 8 1 1 1 1 7 0 3 7 4 8 8 5 6 4 , , , , , 6 1 9 6 1 5 1 7 1 0 6 3 9 2 9 Coal and coke. [U. S. Geological Survey.] [Monthly average, 1911-1913=100.] Bi m d t u u a c m t t e i i d n o o n. u m s on c t o h a ly l, p e r s o ti - - An m d t u h a c t r t e a i d o c i n t . e m o c n o th a l l y , p e r s o ti - - Be m e o hi n v t e h ly co p k r e o , d e u s c ti t m io a n t . ed Short tons. Relative, Short tons. Relative, Short tons. Relative. September, 1919 47,402,000 I 128 7,333,000 1,755,000 67 1920. | January 4S,689,000 131 7,366,000 100 1,982,000 76 February 40,127,000 116 6,335,000 92 1,731,000 71 March 46,792,000 126 7,240,000 98 2,025,000 77 April 37,939,000 102 6,543,000 88 1,602,167 61 May 39,753,000 107 7,745,000 105 1,689,500 65 June 43,710,000 118 7,641,000 103 1,710,333 65 July 45,523,000 123 7,785,000 105 1,693,000 65 August 48,389,000 131 7,332,000 99 1,776,000 68 September 51,093,000 138 5,125,000 69 1,820,000 70 Lumber. [From reports of manufacturers' associations.] [Mfeet.] Southern pine. Western pine. Douglas fir. Eastern white pine. North Carolina pine. b N m e u i r l m o ls f - . Pr ti o o d n u . c- m S e h n ip ts - . b N m e u i r l m l o s f - . Pr ti o o d n u . c- m S e h n ip ts - . b N m e u i r l m o ls f - . Pr t o io d n u . c- m S e h n ip ts - . Pr t o io d n u . c- m S e h n ip ts - . b N m e u r il m o ls f - . Pr ti o o d n u . c- m S e h n ip ts - . September, 1919.. 202 416,640 372,727 154,102 138,537 126 332,905 261,797 16,913 22,574 33,146 35, 468 1920. January 202 386,481 404,706 144,180 128 327,568 344,568 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 15,203 March.. 205 436,944 424,775 130,425 156,211 123 342,948 329,012 43,771 61,620 29,633 29,892 April 205 438,056 359,461 167,165 133,114 126 359,651 274,597 45,222 61,757 13,659 10,616 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 August 204 383,540 337,677 171,143 123,344 123 366,433 322,908 46,149 55,991 19,511 14,130 September 204 376,566 378,195 164,312 98,806 127 299,277 238,965 48,962 45,445 21,887 16,04:5 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

NOVEMBER,, 1920. FEDERAL RESERVE BULLETIN. 1221 Receipts and shipments of lumber at Chicago and St. Louis. [Chicago Board of Trade and Merchants' Exchange of St. Louis.] [Monthly average, 1911-1913=100.] Receipts. Shipments. Receipts. Shipments. M feet. Relative. M feet. Relative. M feet. Relative. M feet. Relative. 1918, 1919. January 201,747 43 113,555 45 June 404,989 256,603 101 February 230,077 53 115,068 49 July 437,517 275,297 108 March 402,084 86 215,278 85 August 382,377 266,797 105 April 523,862 113 276,626 109 September 432,025 274,894 108 May 491,862 106 258,947 102 October 440,216 272,571 107 June 431,412 93 227,023 November 380,186 235,274 93 July 419,125 90 218,084 December 445,226 245,477 97 August 398,202 86 212,258 September 341,053 73 169,575 Year 4,403,275 79 2,669,384 October 259,401 56 136,079 November 268,901 58 152,138 1920. December 291,899 63 160,442 January 403,604 219,783 87 February 421,692 97 224,286 95 Year 4,259,625 2,255,073 74 March 500,230 108 296,047 117 April 236,975 51 131,933 52 1919. May 313,447 67 195,965 77 January 271,769 136,362 June 393,738 85 212,339 84 February 254,667 140,328 July 399,615 184,767 73 March 281,236 158,723 August 370,352 220,368 87 April 316,579 191,616 September 375,456 81 242,857 96 May 356,488 215,442 Crude petroleum. [U. S. Geological Survey.] [Barrels of 42 gallons each.] Produced. Produced. Stocks at end Stocks at end of month of month (barrels). (barrels). Barrels. Relative. Barrels. Relative September, 1919.. 33,667,000 176 137,131,000 1920, April 36,283,000 124,991,000 1920. May 36,931,000 124,689,000 January 33,980,000 177 127,164,000 June 37,295,000 126,763,000 February 33,212,000 186 126,339,000 July 38,548,000 128,168,000 March 36,461,000 190 125,597,000 August 39,397,000 129,043,000 September 37,845,000 128,779,000 Total output of oil refineries in United States. [Bureau of Mines.] Crude oil run Gasoline Kerosene Gas and fuel Lubricating (barrels). (gallons). (gallons). (gallons). (gallons). August, 1919 32,362,057 326,846,167 219,502,888 5,702,461 72,920,214 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 94,964,222 July 37,024,052 423,419,770 172,213,511 751,193,898 92,369,504 August 39,757,770 444,141,422 189,010,450 834,322,503 91,078,569 STOCKS AT CLOSE OF MONTH. Aug. 31, 1919 15,131,549 434,531,446 296,065,646 830,329,785 170,572,819 1920. Jan. 31..- 13,200,727 515,934,364 327,548,646 652,080,901 141,690,177 Feb. 29.-. 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 July 31 17,086,253 413,279,319 410,853,047 655,152,293 131,866,455 Aug. 31 17,960,558 323,239,991 378,548,791 708,608,472 130,797,810 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1222 FEDERAL EESERVE BULLETIN. NOVEMBER, 1920. Iron and steel. [Great Lakes iron-ore movements, Marine Review; pig-iron production, Iron Age; steel-ingot production, American Iron and Steel Institute.] [Monthly average, 1911-1913=100; iron ore, monthly average, May-November, 1911-1913=100.] Iro fr n o - m or e th s e h ipm up e p n e ts r Pig-iron production. Steel-in t g i o o t n . produc- Un S f t i e ll e e l d o C rd o e rp rs o r U at . i o S n . Lakes. at close of month. Gross tons. Relative Gross tons. Relative. Gross tons, j Relative. Gross tons. Relative. September, 1919. 8,178,483 135 2,487,965 107 6,284,638 119 October, 1919.... 6,201,883 102 1,863,558 80 6,472,668 123 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 9,233,566 152 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 August 9,270,763 153 3,147,402 136 3,000,432 124 10,805,038 205 September. 8,923,482 147 3,129,323 135 2,999,551 124 10,374,804 197 October 3,278,104 141 3,015,982 125 Imports of fig tin. [Department of Commerce.] [Monthly average, 1911-1913=100.] Pounds. Relative. I Pounds. Relative September, 1919 11,087,403 1920. 1920. May 9,102,341 10O J A M F a e p a n b r r u i r c l a u h r a y ry 1 1 1 8 3 1 0 , , , , 7 9 9 3 7 2 8 4 2 5 0 5 , , , , 9 8 0 1 5 4 1 3 3 3 9 0 9 1 1 1 7 6 1 3 4 4 2 A J J S u u e u n l p y g e t u e s m t ber 1 1 1 9 1 7 1 , , , , 5 2 5 1 9 3 8 9 6 2 4 5 , , , , 8 3 1 9 2 6 3 1 5 7 7 9 1 1 1 1 2 9 2 0 4 3 3 6 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. Sh l e a e m p b a . nd June 30,1919 4.696,332 2,285,015 558,033 16,991,195 2,521,016 1,697,754 8,118,702 1920. Jan. 31 6,773,360 1,920,184 1,036,372 13,474,529 927,436 1,893,614 8,902,067 Feb. 29 6,559,337 1,859,697 1,141,620 16,481,328 665,524 2,197,683 9,460,914 Map. 31 6,558,300 1,930,218 966,850 15,968,660 468,188 2,047,519 9; 227,252 Apr. 30 6,072,895 2,281,370 834,711 14,666,590 156,871 1,947,499 8,911,681 May 31 5,849,375 2:724,056 924,042 14,131,330 791,150 2,253,785 9,004,621 June 30 6,212,946 3,107,393 915,499 14.562,713 60,999 2,070,471 10,993,228 NOTE.—Figures for June 30 are provisional. 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 Cotton consump- to total reported. tion Cotton Imports of raw silk. spindles Wool con- Looms. [ Spinning spindles. active sumption during (pounds). Wider Under Sets of Bales. Relative. month. i t n h c a h n r 5 e 0 ed - 50 re -i e n d ch cards. Combs. Woolen. Worsted Pounds. Relative. space. space. September, 1919. 491,069 109 34,219,991 52,985,961 19.9 22.8 8.1 5.5 I 12.8 6,755,271 330 1920. January 591,725 132 34,739,071 63,059,862 14.5 18.5 8.8 7.2 1 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 j 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 May j 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 I 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 j 483,193 107 34,471,515 32,849,956 49.5 29.9 39.6 33.4 45.5 37.6 2,690,690 132 September [ 457,647 •102 34,040,806 30,928,337 51.8 34.8 30.6 37.3 44.6 38.0 1,968,801 96 October 49.0 34.9 38.3 26.3 43.2 26.0 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

NOVEMBER, 1920. FEDERAL EESERVE BULLETIN. 1223 Production of wood pulp and paper. [Federal Trade Commission.] [Net tons.] W pu o l o p d . N pr e i w nt s . - Book. b P o a a p r e d r . W pi r n a g p . - Fine. W pu o l o p d . N pr e i w nt s . - Book. b P o a a p r e d r . W pi r n a g p . - Fine. September, 1919 266,915 111,434 81,024 184,897 63,353 31,923 1920. May 363,815 129,230 92,856 213,475 70,511 31,575 1920. June 337,115 130,380 94.957 215,131 72,987 34.121 January 302,541 129,663 96,419 211,934 70,109 32,886 July 312,334 129,853 95;526 218,771 73,487 34,078 February 266,191 114,235 85,532 176,855 61,574 29,202 August 305,965 128,81S 94,424 215,633 75,226 33.122 March 327,143 127,847 95,851 207; 863 68,403 33,671 September. 293,913 121,005 94,142 218,743 70,917 34,207 April 350,194 128,269 95,251 199,395 75,347 33,493 Sale of .revenue stamps for manufactures of tobacco in the United States (excluding Porto Rico and Philippine Islands), [Commissioner of Internal Revenue.] Cigars. Cigarettes. Cigars. Cigarettes. Manu- Manufactured factured Large. Small. Small. tobacco, i Large. Small. Small. tobacco. Number. Number. Number. Pounds. 1920. Number. Number. Number. Pounds. September, 1919.. 575,777,829 53,735,960 4,283,247,387 36,623,005 April 663,577,579 56,548,853 3,756,989,397 34,327,970 Mav 676,227,828 59,943,280 3,953,345,380 34,875,839 1920. June 708,112,284 52,735,587 4,088,834,583 34,23-1,058 January 663,634,243 58,837,900 4,528,760,833 33,608,313 July 678,751,956 51,766,100 3,053,336,563 30,988,646 February 593,832,200 43,358,500 3,536,117,847 31,531,460 August 672,020,289 48,171,240 3.569,397,443 32,138,941 March 753,239,955 55,052,100 4,373,778,917 38,422', 481 September 678,640,116 50,175,580 3;557,482,503 32,094,569 Output of locomotives and cars. [Locomotives, United States Railroad Administration; February on, reports from individual producers; cars, Railway Car Manufacturers' 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 t m ic e . s- Foreign. Total. s D hi o t p m i p c e e s d - . F p o c le o r t e m e ig d - n . Do t m ic. es- Foreign. Total. 1919. Number. Number. Number. Number. Number. 1920. Number. Number. Number. Number. Number. September Ill 51 19,980 4,302 24,282 April . 36 96 2,313 1,934 4,247 Mav 83 112 2,792 1,402 4,194 1920. June 99 72 2 780 731 3,511 January 4S 22 4,650 1,914 6,564 July.... 122 54 2,731 434 3,165 February 43 85 3,960 1,066 5,026 August 114 125 3,409 1,210 4, fil9 March.. 45 59 3,053 2,040 5,093 September 126 69 3,955 1,203 5,058 Vessels built in United States, including those for foreign nations, and officially numbered by the Bureau of Navigation. [Monthly average, 1911-1913 = 100.] Number. to G nn ro a s g s e. Relative. Relative. September, 1919 202 378,858 1,568 1920. May 185,145 1920. June 267,076 January 115 253,680 1,050 July 217,239 February 140 267,231 1,185 August 259,210 1,073 March 170 279,709 1,157 September 261,962 1,084 April 164 251,442 1,040 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1224 FEDERAL RESERVE BULLETIN. NOVEMBER, 1920. Tonnage of vessels cleared in the foreign trade. [Department of Commerce.] [Monthly average, 1911-1913=100.] Net tonnage. Per Net tonnage. Per cent- cent- Rela- age Rela- Rela- age Relative. Ameri- tive. tive. Ameri- tive. American. Foreign. Total. can to American. Foreign. Total. can to total. total. 1919. 1920. September 2,627,480 2,481,676 5,109,156 131 51.4 203 April 2,504,038 1,960,634 4,464,672 115 56.1 222 Mav 2,729,790 2,436,247 5,166,037 133 52.8 209 1920. June 3,199,274 3,141,913 6,341,187 163 50.5 200 January 1,933,385 1,949,798 3,883,183 100 49.8 197 July 3,302,538 3,616,052 6,918,590 178 47.7 189 February 1,702,407 1,628,212 3,330,619 92 51.1 202 August 3,616,267 3,929,602 7,545,869 194 47.9 190 March 2,040,031 2,040,538 4,080,569 105 50.0 188 September 3,421,531 3,513,599 6,935,130 178 49.3 195 Net ton-miles, revenue and nonrevenue. [United States Railroad Administration; March, 1920, on, Interstate Commerce Commission.] August, 1919. 36,361,653,000 1920. April 28,490,595,000 1920. May 37,884,967,000 January 34,769,722,000 June 38,179,565,000 February 32,758,789,000 July 40,435,508,000 March 37,990,993,000 August 42,706,835,000 Commerce of canals at Sault Ste. Marie. [Monthly average, May-November, 1911-1913=100.] EASTBOUND. Grain other than wheat. Wheat. Flour. Iron ore. Total. Bushels. R tiv el 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. September, 1919., 2,918,591 10,180,991 53 917,420 79 7,978,562 134 8,525,794 i 122 October, 1919 4,351,059 22,252,196 116 1,544,510 133 6,059,450 102 7,063,120 101 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 , 107 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 August 2,315,909 26 7,512,510 39 1,038,221 89 8,784,821 148 9,278,071 ! 132 September 3,102,770 35 11,624,488 60 621,010 53 8,721,412 147 9,290,129 ! 133 October 7,198,311 81 28,470,696 148 1,142,991 8,656,823 146 9,876,641 141 WESTBOUND. Hard coal. Soft coal. Total. Total freight. Rela- Rela- Rela- Rela- Short tons. tive. Short tons. tive. Short tons. tive. Short tons. tive. September, 1919 231,030 75 1,156,841 1,677,123 67 10,202,917 107 October, 1919 161 1,848,511 2,650,799 107 9,713,919 102 1920. April 10,000 50,831 82,483 537,209 May 202,000 65 531,375 28 937,374 38 8,421,210 89 June 271,020 87 966,382 50 1,493,935 60 10,647,819 112 July 300,150 97 1,294,162 67 1,827,978 73 11,577,679 122 August 341,690 110 2,533,614 132 3,147,219 127 12,425,290 131 September 177,123 57 2,040,774 106 2,458,002 99 11,748,131 124 October 376,388 121 2,493,907 130 3,123,658 126 13,000,299 137 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

NOVEMBER, 1920. FEDERAL RESERVE BULLETIN. 1225 BANK DEBITS DURING SEPTEMBER OCTOBER. Aggregate debits to individual account; as re- with the result that the 1919 total for that ported by 155 important clearing house asso- week exceeded that for the corresponding week ciations, fluctuated between 8,069 millions for of 1920 by more than a billion, while this year the week ending October 13, and 10,535 mil- October 1 was included in the week ending lions for the following week. The weeks ending October 6, with the consequence that the total October 6 and October 20 saw a much larger for that week was only 416 millions less than volume of debits than the immediately preced- the total for the corresponding one in 1919. ing weeks, the reason being largely that the former included end-of-month and end-of-quarter [In millions of dollars.] payments, while during the latter heavy Government transactions, including interest pay- 154 important centers, other than New York New York City. ments on Liberty bonds of the fourth issue, City. took place. Week ending- A comparison with figures for corresponding 1920 1919 i E n x 1 c 9 e 2 s 0 s . 1920 1919 E in x c 1 e 91 ss 9. weeks in 1919 is made in the statement below, separate totals being shown for New York City Sept. 22,1920 and for the other 154 centers. For the centers Sept. 24,1919 } 4,966 4,206 760 4,407 4,993 586 outside of New York City this year's figures are S O e c p t. t . 1 2 ,1 9 9 ,1 1 9 9 20 4,365 4,092 273 4,273 5,366 1,093 larger than last year's for every week included O O c c t t . . 6 8 ,1 ,1 9 9 2 1 0 9 4,839 4,280 559 4;998 5,414 416 in the statement. The difference of two days Oct. 13, 1920 in the dates included in each week, however, Oct. 15,1919 4,184 4,166 18 3,885 4,680 795 Oct. 20,1920 causes considerable variations in the weekly Oct. 22,1919 j 5,227 4,651 576 5,308 5,712 404 totals for 1920 as compared with 1919. For New York City bank debits in 1920 were In general, it should be kept in mind that the much smaller than in 1919 for each of the four significance of the totals of debits appears only weeks under review. No particular significance when a general trend over a comparatively attaches to the changes in the differences be- long period is studied, as weekly totals are tween the two years from week to week, as affected by many fortuitous circumstances, such these changes depend largely on the inclusion as holidays and payment dates, which often or exclusion of a particular date, such as Octo- result in radical changes in the volume of ber 1 or October 15. Thus in 1919, October 1 business for a given week, without being inwas included in the week ending on that date, dicative of changes in economic conditions. Debits to individual accounts at clearing-house banks. SUMMARY BY FEDERAL RESERVE DISTRICTS. [In thousands of dollars.] 1920. 1919 Number Week ending— Week ending— Federal Reserve district. of centers included. Sept. 29. Oct. 6. Oct. 13. Oct. 20. Oct. 1. Oct. 8. Oct. 15. Oct. 22. Boston 13 463,659 495,287 395,344 553,314 421,702 471,787 479,473 576,899 New York 7 4,412,645 5,179,661 4,023,467 5,479,619 5,499,882 5,551,003 4, 808,777 5,865,13G Philadelphia.. 13 425, 955 468, 649 386,362 501,270 422,931 422,452 356,478 455,187 Cleveland 13 369,096 430, 786 362,391 449,211 360,714 363,309 364,290 356,055 Richmond 7 169,680 197, 078 170,109 200,106 178,973 186,977 188,322 206,785 Atlanta 15 236,286 252,235 226,560 263,978 228,927 246,304 248,039. 276,531 Chicago 23 1,125,493 1,234,896 1,055,357 1,411,333 1,009,278 1,075,203 1,010,118 1,134,212 St. Louis 5 211,587 239, 734 227,592 258,912 210,854 230,684 248,324 259.728 Minneapolis... 11 188,045 213,688 211,474 223,156 188, 662 191,720 190,621 195,231 Kansas City... 15 325,716 343,513 320,813 345,806 286, 751 301,029 287,602 300,182 Dallas :... 13 173,790 187,127 170,675 195,831 145, 067 149,532 161,922 176,803 San Francisco. 20 536.691 594,353 517,938 642,261 504,345 504,336 502,671 550,959 Total.... 155 8,638,643 9,837,007 8,069,082 10,534, 797 9,458,086 9,694,336 8,846,637 10,363,712 NOTE.—Figures for the following center?, while shown in the body of the statement, are not included in the summary, complete dataf ofrt these centers not being available for each wreek under review: Manchester, N. H.; Cheyenne, Wyo.; Sioux Falls, S. Dak.; Huntington, W. Va.; Mi line, 111.; Washington, D. C.; Pittsburgh, Pa. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1226 FEDERAL RESERVE BULLETIN. NOVEMBER,, 1920. Debits to individual account at clearing-house banks—Continued. DATA FOR EACH REPORTING CENTER. [In thousands of dollars.] 1920 1919 Week ending— Week ending— Federal Reserve district. Sept. 29. Oct. 6. Oct. 13. Oct. 20. Oct. 1. Oct. 8. Oct. 15. Oct. 22. No. 1—Bos ton: Bangor 4,033 5,245 4,036 4,508 3,184 3,200 3,100 3,416 Boston 302.343 308,505 246,755 365,609 271,665 311,552 324,726 382,293 Fall River 7,850 8,680 6,407 9,328 7,522 8,797 8,398 10,177 Hartford 28,281 31,682 22,050 27,205 27,374 27,832 20,794 25,316 Holyoke 4,166 4,778 3,574 5,075 4,171 3.941 3,426 4,135 Lowell 5,473 6,148 5,212 6,886 4,948 5,017 5,191 5,916 Manchestor 4 532 5 721 4,545 5,762 New Bedford 7,331 7,169 6,374 8,999 6,812 7,180 7,236 9,070 New Haven 17,508 17,508 17,325 25,632 16,714 18,318 17,396 20,162 Portland 8,913 11,063 10,191 10,406 9,635 9,710 10,255 7,788 Providence 36,137 44,960 33,741 48,015 31,426 34,952 36,772 51,008 Springfield 16,703 17,736 14,274 19,043 15.483 16,449 17,717 20,628 Waterbury 6,947 10,800 8,200 9,400 6; 719 7,217 6,967 6,547 Worcester 17,974 21,013 17; 205 23,208 16,049 17,622 17,495 30.443 No. 2—New York: Albany 18,293 22,170 18,757 22,628 18,420 21,860 19,979 22,569 Binghamton 4,240 5,299 4,606 4,815 3,346 3,893 3,357 3,976 Buffalo 64,410 84,646 63,109 81,874 62,965 62,091 59,628 72,122 New York 4,272,957 4,998,459 3.885,092 5,308,198 5,365,713 5,414,266 4,680,034 5,712,080 Passaic 5,506 5,064 4,968 5,960 4,217 4,412 5,131 5,879 Rochester 29,317 41,203 27,278 35,563 28,873 28,222 28,049 32,126 Syracuse 17,922 22,820 19,657 20,581 16,348 16,259 12,599 16,378 No. 3—Philadelphia: Altoona 4,460 3,950 3,900 3,640 3,039 3,540 2,922 3,612 Chester 5,411 6,422 5,785 6,947 4,759 4,666 2,431 5,504 Harrisburg 1,628 2,670 1,042 2,789 3,900 4,458 4,226 4,075 Johnstown 5,337 4,997 5,110 5,674 3,465 3,859 3,142 3,404 Lancaster 5,902 7,043 5,465 6,580 5,342 5,919 5,347 6,235 Philadelphia 347,015 376,799 306,136 406,428 345,454 345,720 283,458 377,703 Reading 4,274 5,176 3,385 5,799 4,269 4,045 3,841 4,555 Scranton 15,950 21,174 17,795 17,613 16,510 13,895 13,192 12,622 Trenton 12,090 12,309 11,078 15,403 9,929 10,098 10,634 11,093 Wilkes-Barre 7,952 10,229 10', 531 10,891 8,287 7,859 9,394 7,776 Williamsport 4,021 4,878 4,176 5,638 3,549 3,722 3,190 3,690 Wilmington 7,163 7,760 7,651 8,389 10,453 10,255 11,086 10,615 York... 4,752 5,242 4,308 5,479 3,975 4,416 3,615 4,303 No. 4—Cleveland: Akron 21,490 23,891 19,008 22,419 24,001 26,136 18,639 25,546 Cincinnati 63,263 70,429 59,136 76,273 63,081 55,490 57,562 63,902 Cleveland 160,104 200,913 167,912 210,185 157,980 162,109 167,589 162,212 Columbus 29,511 30,963 27,309 34,790 27,445 28,872 30,184 30,396 Dayton 11,138 12,327 11,743 11,831 12,131 11,465 11,874 11,832 Erie 7,703 9,033 7,612 9,001 7,171 7,440 6,320 7,326 Greensburg 6,662 6,843 6,400 7,113 6,256 4,560 6,664 6,190 Lexington 4,870 5,164 4,448 5,719 4,516 4.419 3,865 4,891 Oil City 3,721 3,999 2,534 4,785 2,412 3; 407 2,610 3,301 Pittsburgh 234 724 234 208 257,026 186.596 156,107 171,756 192,566 Springfield 3,827 3,635 3,668 3,614 3,537 2,891 3,593 3,426 Toledo 29,968 34,578 26,661 36,658 27,455 30,963 31,365 22,074 Wheeling 9,651 9,935 8.524 11,369 7,096 7,656 9,213 11,527 Youngstown 17,188 19,076 17, 436 15,454 17,633 17,901 14,812 13,442 No. 5—Richmond: Baltimore 106,171 124,101 98,298 123,995 103,600 105,051 103,178 111, 169 Charleston 5,500 7,461 6,500 6,875 9,380 10,118 10,540 12,713 Charlotte 6,704 7,360 7,808 8,222 5,800 4,300 6,400 4,000 Columbia 5,756 6,928 5,954 6,356 8,797 9,753 8,938 10,714 Huntington 5 856 6 196 5 618 6,893 Norfolk 18^309 19^359 19^166 21,059 17,712 21,315 20,687 22,243 Raleigh. 4,500 4,280 4,280 4,300 4,600 4,800 4,963 5,000 Richmond 22,740 27,589 28,103 29,299 29,084 31,640 33,616 40,946 Washington 33,961 38,992 36,560 39,664 No. 6—Atlanta: Atlanta 26,942 31,243 30,056 32,851 32,294 34,632 38,772 41,388 Augusta 8,835 9,598 9,370 10,054 11,963 14,072 12,858 15,879 Birmingham 16,687 18,745 17,554 19,203 15,630 15,401 15,139 16,241 Chattanooga 10,295 12,343 12,570 12,196 11,103 12,220 13,032 12,130 Jacksonville 12,465 14,019 13,282 14,780 12,006 10,981 11,265 12,053 Knoxville 6,205 8,064 6,569 7,166 6,627 6,966 6,855 6,642 Macon 6,873 6,722 6,265 6,999 8,844 9,094 9,809 11,835 Mobile 7,393 8,897 8,088 7,850 6,792 8,344 8,001 8,182 Montgomery 4,635 5,276 5,180 5,400 5,296 6,562 6,181 6,183 Nashville 22,442 29,982 23,906 26,923 21,351 23,238 22,367 23,208 New Orleans 86,600 79,029 68,054 94,096 70,782 72,919 71,809 84,556 Pensacola 2,416 2,518 2,370 2,440 2,334 2,618 2,273 2,386 Savannah 17,669 17,435 15,580 17,058 18,481 22,350 22,452 28,664 Tampa 5,433 6,560 6,068 5,259 4,336 4,856 4,805 4,800 Vicksburg 1,396 1,804 1,648 1,703 1,088 2,051 2,421| 2,384 No. 7—Chicago: Bay City 3,703 3,868 3,013 3,360 2,545 3,164 2,917 3,269 Bloomington 2,770 3,001 2,855 3,014 2,904 2,896 2,515 3,042 Cedar Rapids 12,197 11,995 12,400 12,260 7,740 12,039 7,055 9,759 Chicago 730,626 812,003 672,649 924,767 654,015 700,787 626,381 739,158 Davenport 7,692 9,519 7,489 7,485 8,051 9,077 7,008 8,024 Decatur 4,104 4,017 3,601 4,332 3,471 4,180 3,117 3,900 DesMoines 19,450 21,692 20,778 20,911 19,531 25,337 22,229 23; 165 Detroit 141,545 151,212 131,401 195,167 133,288 136,873 153,759 145,039 Dubuque 3,385 4,054 3,412 3,829 2,265 2,815 2,578 2,977 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

NOVEMBER, 1920. FEDERAL RESERVE BULLETIN. 1227 Debits to individual account at clearing-house banks—Continued, DATA FOR EACH REPORTING CENTER—Continued. [In thousands of dollars.] 1920 1919 Week ending- Week ending— Federal Reserve district. Sept. 29. Oct. 6. Oct. 13. Oct. 2a Oct. 1. Oct. 8. Oct. 15. Oct. 22. No. 7—Chicago—Continued. Flint 8,193 10,319 7,816 8,940 10,208 9,553 8,433 10,736 Fort Wayne 7,490 8,272 6,985 9,244 5,732 6,208 5,572 7,480 Grand Rapids 20,990 21,312 21,578 22,895 18,015 18,686 16,541 1.8,684 Indianapolis 35,321 40,207 33,020 42,553 30,342 30,596 33.111 34,578 Jackson 5,095 5,741 4,303 5,711 4,239 4,330 4,317 5,421 Kalamazoo 5,531 7,004 5,577 6,435 3,756 4,273 4,175 4,193 Lansing 5,391 6,782 5,828 6,117 5,587 5,735 6,078 6,480 Milwaukee 70,461 65,887 70, 465 86,371 56, 642 55,581 61,493 66,962 Moline 2,492 2,703 2,857 3,125 Peoria 9,389 10,370 8,484 11,089 9,092 9,507 9,670 10,217 Rockford 6,233 7,145 6,391 6,475 4,964 6,608 5,883 5.684 Sioux City 13,521 16, 744 15,715 16,944 14,146 14,853 14.458 14; 720 South Bend 4,927 4,739 5,197 6,130 3,671 4,639 5^208 2,111 Springfield 3,563 4,414 3,560 2,997 5,705 3,707 4,382 4,759 Waterloo 3,916 4,599 3,840 4,307 3,369 3,759 3,238 3,854 No. 8—St. Louis: Evansville 5,120 5,150 5,292 5,340 4,451 4,164 4,647 4,620 Little Rock 8,650 17,011 11,963 15,186 8,907 11,899 13,097 11,762 Louisville 27,556 29,418 25,439 32,284 30,077 30,983 32,708 34,653 Memphis 25,839 28,856 31,800 35,919 27,052 34,432 42,099 42,007 St. Louis 144,422 159,299 153,098 170,183 140,367 149,206 155,773 166,686 No. 9.—Minneapolis: Aberdeen 1,932 2,221 2,153 1,978 1,930 2,465 1,988 2,154 Billings 2,036 2,500 2,440 3,200 2,226 2,385 2,555 2,823 Duluth 36,603 40,115 39,969 40,030 23,892 24,482 23,498 24,534 Fargo 3,688 4,811 4,505 4,135 9,181 9,336 9,860 10,147 Grand Forks 1,651 2,247 2,057 2,272 2,226 2,609 2,708 2,376 Great Falls 2,892 2,915 2,331 2,591 2,174 2,773 2,142 2,441 Helena. 2,314 2,962 2,671 2,776 2,531 3,431 2,817 2,765 Minneapolis, 100,615 115,113 116,725 110,562 98,807 103,328 101,901 104,046 St. Paauul... 33,105 37,504 35,076 51,572 42,102 37,227 39,806 39,690 Sioux Falls. 6,099 6,274 8,285 6,700 Superior 2,170 1,980 2,021 2,188 2,189 2,169 2,131 2,081 Winona 1,039 1,320 1,526 1,852 1,404 1,515 1,215 2,174 No. 10.—Kansas City: Atchison 563 570 543 504 448 510 541 Bartlesville, 3,933 3,485 3,584 3,70-4 3,477 3,212 2,7 3,193 Cheyenne 2,305 2,756 1,990 1,913 Colorado Springs 3,474 3,651 3,584 3,123 2,841 2,704 3,085 3,143 Denver 50,202 56,171 48,351 51,477 34,068 31,875 34,112 35,218 Joplin 3,381 3,874 3,989 3; 703 3,206 3,479 3,660 3,526 Kansas City, Kans.. 4,236 4,318 4,410 4,501 3,322 3,422 3,421 3,322 Kansas City, Mo 99,423 102,651 94,577 112,355 88,571 92.754 83,484 91,887 Muskogee 5,100 5,870 5,496 7,328 4,580 6,002 5,775 5,977 Oklahoma City 27,926 29,408 30,287 24,777 17,764 19,328 18,344 19,619 Omaha 56,768 58,887 54,565 61,608 66,295 73,564 66,359 66,407 Pueblo 4,136 6,179 7,016 7,247 4,258 6,264 4,061 3,462 St. Joseph 18,085 18,831 17,638 18,933 14,177 17,330 17,437 21,457 Topeka 3,343 4,633 4,301 4,399 5,234 6,328 6,311 5,932 Tulsa 30,425 27,822 28,843 29,026 24,778 21,841 26,586 23,696 Wichita 14,721 17,163 13,629 13,121 13,732 12,416 11,644 12,802 No. 11.—Dallas: Albuquerque 1,523 2,228 2,030 2,043 1,372 1,910 1,590 1,937 Austin 5,193 5,263 4,680 5,300 3,395 4,690 3,602 4,220 Beaumont 4,474 5,026 4,797 5,621 3,869 3,948 4,138 4,427 Dallas 43,744 50,961 45,459 54,206 44,960 43,485 50,805 53,532 El Paso 8,089 8,814 9,?36 9,276 6,517 7,995 8,540 9,522 Fort Worth 28,440 29,880 28,997 30,432 22,831 24,217 24,822 25,387 Galveston 13,540 13,835 13,529 13,708 8,749 10,054 10,304 13,223 Houston 43,509 46,369 36,061 45,905 33,252 30,418 35,111 40,934 San Antonio 8,453 9,540 8,247 9,743 6,696 8,373 7,949 7,824 Shreveport 8,172 6,936 8,220 9,413 6,220 6,666 8,573 6,579 Texarkana 1,725 1,892 2,157 2,210 1,773 1,744 1,793 2,089 Tucson 1,708 1,686 1,490 2,180 988 1,156 1,043 1,240 Waco 5,220 4,697 5,772 5,794 4,445 4,876 3,652 5,889 No. 12.—San Francisco: Berkeley 2,874 3,238 2,518 3,643 2,314 2,469 2,334 2,696 Boise 2,662 3,470 3,470 3,130 2,810 3,407 3,435 3,764 Fresno 13,218 15,597 16,563 19,452 10,132 11,069 11,651 14,077 Long Beach 4,938 5,984 4,931 6,582 3,450 3,946 3,729 3,899 Los Angeles 96,214 101,831 88,8S6 109,784 81,000 74,690 74,120 86,318 Oakland 19,675 24,265 21,871 23,229 14,192 20,150 16,450 18,595 Ogden 4,800 5,400 4,486 4,686 4,686 4,239 4,159 4,330 Pasadena 4,473 5,615 4,358 5,342 4,849 4,122 3,863 3,982 Portland 44,637 48,567 47,480 53,890 46,463 51,959 56,040 55,096 Reno 2,603 3,153 2,587 3,153 2,579 3,058 2,958 3,729 Sacramento 19,154 18,113 15,367 21,651 16,264 15.755 16,305 16,464 Salt Lake City 17,517 20,571 15,907 19,255 16,883 14,399 17,749 19,749 San Diego 7,447 9,204 7,856 9,738 4,568 5,368 5,162 6,836 San Francisco 214,370 238,649 201,449 261,577 199,631 191,786 192,515 205,646 San Jose 6,227 7,047 6,794 8,312 7,102 7,684 7,105 9,419 Seattle 43,637 46,866 39,228 49,141 53,801 53,666 51,993 58,270 Spokane 13,189 15,602 14,202 16,563 14,554 15,006 14,524 15,297 Stockton 5,880 6,430 5,777 6,913 5,555 5,952 3,650 6,159 Tacoma 10,230 11,240 11,004 12,041 10,471 11,797 11,634 12,100 Yakima 2,946 3,511 3,194 4,179 3,041 3,814 3,295 4,533 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1228 FEDERAL RESERVE BULLETIN. NOVEMBER, 1920. DISCOUNT AND OPEN-MARKET OPERATIONS OF THE FEDERAL RESERVE BANKS DURING SEPTEMBER, 1920. Discount and open-market operations of the The amount of such accommodation extended Federal Reserve Banks during September and or received is also shown. August, 1920 and 1919, are shown in summary [In millions of dollars.] form for the system as a whole in the table below. Detailed figures for each Federal Re- Inter-Federal Reserve Bank for the most recent month are Volume of discounts serve Bank acgiven on pages 1230 and 1231. for member banks. commodation (net amount). Summary of discount and open-market operations of Federal Federal Reserve Bank. Excess Excess Reserve Banks in September and August, 1920 und 1919. Sep- Au- Sep- Sep- [In thousands of dollars.] t b e e m r. - gust. te o m v b er er tem ov b e e r r August. August. 1920 1919 te S m e b p- er. August. te S m e b p- er. August. B m e a r n o a B k l d s o R a s t e t e i o x o s n e t n e r n v to e d i B n o g t a h n e a k r c s F c : o e m d- - 385 417 — 32 A d 1 t a c 7 e t c 1 n i o o d m n e m d e 1 . x 6 o - 0 - + 11 Philadelphia 419 521 -102 48 10 +38 Total discount and open-market Cleveland 164 198 - 34 212 157 + 55 purchases 8,446,264 8,366,565 8,801,291 6,808,747 San Francisco 245 228 + 17 10 -10 Discounts—Total 7,298,969 7,982,524 6,726,155 6,433,662 Secured by. Government war Total 1,213 1,364 -151 431 337 +94 obligations 4,164,115 4,932,902 6,238,286 6,171,309 Otherwise secured and unsecured—Total 3,134,854 3\j, 049,622487,869 262,353 Banks receiving accommo- Accoinmo- Trade acceptances 17,131 13,985 10,619 6,427 dation from other Fed- daticn re- Bankers' acceptances 7,945 5,491 388 182 eral Banks: cerv^ed. All other (commercial n. e. New York. 4,412 5,092 -680 36 31 + 5 s., agricultural and live- Richmond.. . 281 265 + 16 95 80 + 15 stock paper) 3,109,778 3,030,146 476,862 255,744 Atlanta 208 208 52 42 + 10 Average maturity (in days) 14.27 12.38 9.44 9.33 Chicago 622 511 + 111 30 8 + 22 Average rate (365-day basis), St. Louis . . 207 206 48 48 percent 6.33 6.19 4.18 4.12 Minneapolis 74 81 +- \ 33 35 - 2 Open-market operations: Kansas City 158 145 III 57 27 +30 Bills purchased—Total 257,988 259,708 205,048 194,211 Dallas 124 111 80 66 + 14 Bankers' acceptances—Total... 249,268 242,012 201,962 192,405 In the domestic trade 52,961 51,027 48,557 36,654 Total .. 6,086 6,619 -533 431 337 +94 In the foreign trade 196,307 190,985 153,405 155,751 Trade acceptances—Total 2,130 12,270 2,773 1,425 Grand total 7,299 7,983 -684 431 337 +94 In the domestic trade 203 479 267 In the foreign trade 1,927 12,270 2,294 1,158 Dollar exchange 6,590 5,426 313 381 Average maturity (in days) — 41.71 36.78 46.15 50.73 The volume of member bank discounts by the Average rate (365-day basis) percent 6.04 6.04 4.25 4.25 Federal Reserve Banks granting accommoda- United States securities pur- tion to other Federal Reserve Banks was about chased: Bonds 13 151 millions smaller in September than in Certificates of indebtedness... 889,307 124,3201,870,088 180,874 August, the San Francisco bank being the only one in that group for which a larger volume of Discount operations of the Federal Reserve discounts is shown for the most recent month. Banks in September aggregated 7,299 million At the same time the total accommodation dollars, or 684 millions less than the 7,983 granted by the four banks in this group to the millions reported the month before. During eight other Federal Reserve Banks increased September and August, 1919, corresponding by 94 millions (net). On the other hand, the totals were 6,726 and 6,434 millions. These volume of discounts granted to their member figures are exclusive of bills discounted for banks by the Federal Reserve Banks receiving other Federal Reserve Banks, which totaled accommodation from other Federal Reserve 440 millions during September and 298 millions Banks was larger in September than in August during August of this year, and 189 millions in the case of every bank, except those of New during September and 196 millions during York, Atlanta, and Minneapolis. In the case August, 1919. of the New York bank it is to be noted that the The following statement shows the volume volume of discounts declined by 680 millions. of discounts for each Federal Reserve Bank Discounts of paper secured by Government during September and August of the current war obligations, including Treasury certificates, year. The banks are arranged in two groups— were smaller by 769 millions in September those extending accommodation to other Fed- than in August, while all other discounts ineral Reserve Banks and those receiving accom- creased by 85 millions. Trade acceptances modation from other Federal Reserve Banks. discounted totaled 17 millions in September, Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

NOVEMBER, 1920. FEDERAL RESERVE BULLETIN. 1229 as against 14 millions in August; bankers' ac- Federal Reserve Bank holdings of discounted ceptances totaled 8 millions in September, and purchased paper, by classes of paper, at the compared with 5 millions in August; and all end of September and of August, 1920, and other discounts, including commercial, agri- 1919, are shown in detail on page 1233, and cultural, and live-stock paper, aggregated are summarized in the following table: 3,110 millions, as against 3,030 millions the month before, and 477 millions in September Summary of discounted and purchased paper held by the Fedof last year. eral Reserve Banks at the end of September and of August t 1920 and 1919} The average maturity of all the paper dis- [In thousands of dollars.] counted in September figures out at 14.27 days after discount by the Federal Reserve Banks, 1920, end of— 1919, end of— compared with 12.38 days in August of this year and 9.44 days in September of the year " August. Se b p e t r e . m- August. before. An advance from 6.19 to 6.33 per cent in the average rate of discount is noted, Discounted paper, total 2,704,464 2,667,127 1,882,282 1,815,134 the average rates for the two corresponding Secured by Government war obligations , 1,220,423 1,314,830 1,572,503 1,609,296 months in 1919 being 4.12 and 4.18 per cent. Otherwise secured and unsecured, total 1,484,0411.,352,297 309,779 205,838 Total bills purchased in September were Agricultural paper 120,998 117,050 32,932 30,363 about 2 millions less than the month before, L T i r v a e d - e s t a o c c c k e p p t a a p n e c r es 1 2 0 2 3 , , 0 4 8 2 0 6 9 1 9 9 , ,4 2 7 2 6 8 2 10 7 , , 9 2 6 7 1 3 2 9 7 , , 0 5 0 3 1 8 increases of about 7 millions in bankers' ac- Bankers' acceptances 8,072 9,013 479 439 Commercial paper, n. e. s.1,229,465 ,107,530 238,134 138,497 ceptances and of about 1 million in dollar Purchased paper, total.... 301,211 307,104 300,129 367,163 exchange purchased being more than offset Ban M ke e r m s' b a e c r c e b p a t n a k n s ces, total... 2 20 9 0 8 , , 9 2 7 2 6 3 2 2 0 9 2 9 , , 8 9 6 6 8 0 2 20 9 8 7 , , 7 1 8 5 4 3 3 2 6 6 5 4, , 8 3 2 7 7 3 by a decline of 10 millions in trade acceptances Nonmember trust companies 3,009 2,631 8,255 3,111 bought in the open market. Of the bankers' Nonmember State banks 38,939 41,499 24,821 32,665 acceptances purchased 53 millions were in the Private banks 29,788 31,225 33,420 43,815 Foreign banks, branches domestic trade and 196 millions in the foreign and agencies 25,511 21,737 21,873 20,955 trade, while of the 2 millions of trade accept- Trad D e o a m cc e e st p i t c ances, total 2,9 2 8 0 8 7 7 1 , , 1 3 4 3 4 4 2,9 5 7 9 6 1 1,7 5 9 6 0 1 ances purchased all but about $200,000 were Foreign 2,781 5,810 2,385 1,229 in the foreign trade. The average maturity 1 For discounted paper, the figures are for the last Friday of each month; of all paper purchased by the Federal Reserve for purchased paper, for the last day of each month. Banks in September was 41.71 days, compared Among the principal changes between Auwith 36.78 days in August. The average rate gust and September in holdings of discounted charged on acceptances remained unchanged paper the following are to be noted: A decrease at 6.04 per cent. of 94 millions in paper secured by Government During the month under review 28 banks war obligations and an increase of 132 millions were added to the membership of the system, in paper not so secured. Holdings of agrithe total number of member banks increasing cultural paper were about 4 millions larger at from 9,487 on the last day of August to 9,515 the end of September than at the end of August, on the last day of September, while the numthe most recent amount of 121 millions being ber of member banks accommodated through comparable with 33 millions shown for the end discount of paper further declined from 4,780 of September, 1919. Holdings of live-stock in August to 4,768 in September. The numpaper show an increase of 4 millions as comber of member banks in each district at the end pared with the end of August, 1920, and of 76 of August and of September and the number millions as compared with the end of Sepaccommodated during each of the two months tember, 1919. Holdings of discounted trade are shown in the following statement: acceptances were about 3 millions larger at the end of September than a month earlier, while Member banks in Member banks district. accommodated. holdings of discounted bankers' acceptances Federal Reserve Bank. declined by about 1 million. Holdings of Sept. 30. Aug 31. Se b p e t r e . m- August. commercial paper proper increased from 1,108 at the end of August to 1,229 millions at the Boston 434 4S9 219 201 end of September, compared with 238 millions New York. 776 775 323 323 Philadelphia 694 693 348 365 a year earlier. C R l i e c v h e m la o n n d d 8 61 6 0 6 8 6 6 0 6 9 3 2 5 5 6 8 3 2 7 8 1 2 Holdings of purchased acceptances at the Atlanta 436 445 320 294 end of September were about 301 millions, Chicago 1,404 1 400 772 742 St. Louis 569 568 303 285 marking a fm ther reduction of 6 millions from M Ka in n n sa e s a p C o i l t i y s . 1,0 9 8 8 0 8 1 9 0 8 7 5 3 4 54 1 7 0 4 4 8 8 8 8 the total of 307 millions shown for the end of Dallas 841 83S 521 527 August. Bankers' acceptances declined by San Francisco 817 808 391 414 about 2 millions from the end of August to the Total 9,515 9 487 4,768 4,780 end of September and were about 1 million Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1230 FEDERAL RESERVE BULLETIN. NOVEMBER, 1920. larger at the latter date than at the end of and 8.5 per cent by foreign bank branches September of the past year. Of the bankers' and agencies. Holdings of trade acceptances acceptances held at the end of the month decreased from 7 millions at the end of August 67.4 per cent were accepted by member banks, to 3 millions at the end of September, all but 14.1 per cent by nonmember trust companies $207,000 of the latter amount being acceptand State banks, 10 per cent by private banks, ances drawn in the foreign trade. Total discount and open-market operations of each Federal Reserve Bank during the month of September, 1920. United States securities purchased. Total. Bills discounted Bills bought in Federal Reserve Bank. for b m an e k m s. ber open market. B V on ic d t s o r a y nd Certificates of September, September, notes. indebtedness. 1920. 1919. Boston $385,188,282 $31,989,930 $60,102,500 $477,280,712 $365,574,774 New York 4,412,393,284 111,729,554 669,964,500 5,194,087,338 4,419,116,180 Philadelphia 418,472,197 1,502,624 9,063,000 429,037,821 1,020,490,694 Cleveland 164,377,331 24,535,676 134,518,000 323,431,007 503,632,546 Richmond 281,011,950 3,888,254 1,500 284,901,704 366,747,953 Atlanta 207,733,821 2,039,421 209,773,242 235,739,496 Chicago 621,677,416 32,332,316 2,951,000 656,960,732 1,054,796,746 St. Louis 207,292,854 1,345,000 3,996,500 212,634,354 215,577,975 Minneapolis 73,704,677 552,563 2,128,500 76,385,740 132,942,610 Kansas City 158,104,969 2,857,110 292,500 161,254,579 146,971,107 Dallas 124,038,279 532,500 124,570,779 125,337,284 San Francisco 244,973,791 •44,683,641 6,289,000 295,946,432 214,364,027 Total, September, 1920 7,298,968,851 257,988,589 889,307,000 8,446,264,440 Total, September, 1919 6,726,155,257 205,048,335 $300 1,870,087; 500 8,801,291,392 Total, 9 months ending Sept. 30, 1920 60,427,824,934 2,450,863,929 240,600 6,256,516,000 19,135,445,463 Total, 9 months ending Sept. 30, 1919 56,408,280,795 1,748,511,692 1,751,975 3,848,462,000 162,007,007,462 1 Includes $1,000 of municipal warrants. Average daily amount of earning assets held by each Federal Reserve Bank during September, 1920, earnings from each class of earning assets, and annual rates of earnings on basis of September, 1920, returns. Average daily holdings of— Federal Reserve Bank. Discounted Purchased United States bills. bills. securities. Total. Boston i $181,125,922 $27,778,971 $30,315,242 $239,220,135 New York ' 869,681,948 96,822,192 93,641,783 1,060,145,923 Philadelphia | 178,134,074 15,319,227 34,288,950 227,742,251 Cleveland > 211,611,413 47,819,815 30,545,833 289,977,061 Richmond ! 109,403,831 7,401,613 13,493, 950 130,299,394 Atlanta ! 121,759,811 1,623,817 15,781,924 139,165,552 Chicago I 451,341,396 46,143,936 44,156,517 541,641,849 St. Louis , ! 114,560,945 1,758,667 18,672,966 134,992.578 Minneapolis ! 83,596,000 1,159,000 8,669,000 93,424; 000 Kansas City j 110,206,323 3,613,080 21,699,933 135,519,336 Dallas 76,236,838 625,917 1,229,933 78,092,688 San Francisco 169,390,708 63,797,654 13, 999, 900 247,188,262 Total, September, 1920 ! 2,677,049,209 313, 863,889 326,495,931 3,317,409,029 Total, September, 1919 1 1, 777,333,922 353,935,606 340,245,819 2,471,515,347 Earnings from— Annual rates of earnings on— Federal Reserve Bank. Discounted Purchased United Dis- Pur- United bills. bills. States se- Total. counted chased States se- Total. curities. bills. bills. curities. Per cent.Per cent.Per cent.Per cent. Boston $957,429 $139,676 $61,658 $1,158, 6.45 6.13 2.48 5.91 New York 4,526,208 482,361 180,924 5,189, 6.35 6.08 2.36 5.97 Philadelphia 831,458 75,217 64,518 971, 5.69 5.99 2.29 5.20 Cleveland 1,082,861 238,467 66,342 1,387, 6.22 6.07 2.64 5.82 Richmond 521,987 37,012 22,236 581, 5.82 6.10 2.01 5.44 Atlanta 565,612 8,119 26,048 599, 5.67 6.10 2.01 5.26 Chicago 2,447,656 226,655 76,283 2,750, 6.62 5.99 2.11 6.20 St. Louis 538,614 8,997 32,517 580l 5.74 6.24 2.12 5.24 Minneapolis 459,138 5,794 14,333 479, 6.70 6.10 2.02 6.26 Kansas City 542,931 17,864 37, 709 598, 6.01 6.03 2.12 5.39 Dallas 353,987 3,131 21,178 378, 5.66 6.00 2.09 5.18 San Francisco 829,680 315,325 24,533 1,169, 5.98 6.03 2.14 5.77 Total, September, 1920 13,657,561 1,558,618 628,279 15,844,458 6.22 6.06 2.35 5.83 Total, September, 1919 6,095,904 1,243,488 605,669 7', 945,061 4.17 4.27 2.17 3.91 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

.NOVEMBER, 1920. FEDERAL RESERVE BULLETIN. 1231 Bills discounted during the month of September, 1920, distributed by classes; also average rates and maturities of bills dis counted by each Federal Reserve Bank. Member banks' collateral Customers' notes. All other Federal Reserve Bank. G se w o c v p a u e r a r r p e o n e d b m r l b i e - y nt G S o e v cu e r r e n d m e b n y t Otherwise c T e r p a t d an e c a e c s - . B a a c n c k ep er t- s' c ( n c u . l o i l e v t m u . e m r - s a s ., t e l o , r a c c g a i k r n a i d l - , Total. m A in a v d t e u r a a r y i g s t e y . A (3 b v 6 a r e a 5 s r - t i a e d s g ) a . e y gations. war obli- secured. paper). gations. Per cent. Boston $10,926,790 $293,743,720 $170,417 $23,373 $80,323,982 $385,188,282 12.81 6.50 New York j 57,032,668 2,214,587,510 $64,000 13,988,969 ^2,243,958 2,134,476,179 4,412,393,284 7.63 6.47 Philadelphia 13,018,592 260, 421,244 30,000 230,744 75,000 144,696,617 418,472,197 10.93 5.58 •Cleveland ! 4,004,509 120, 491,180 87,000 2,137,598 1,567,720 36,089,324 164,377,331 15.93 5.82 Richmond i 2,468,989 229, 190,568 3,144,100 1,207,388 45,000,905 281,011,950 15.29 5.98 Atlanta 8,809,663 132, 100,770 713,000 758,042 124,584 65,227,762 207,733,821 26.21 6.04 Chicago | 11,727,046 304, 655,060 6,529,785 2,249,647 584,700 295,931,178 621,677,416 39.39 6.76 S"•t . TL oui' s., 4,665,238 112, 442,492 70,520 822,756 846,775 88,445,073 207,292,854 27.59 6.06 Minneapolis... 1,149,113 31,108,730 1,976,711 165,745 39,304,378 73,704,677 42.99 6.81 Kansas City... 5,039,555 95,758,298 766,000 1,601,089 46,550 54,893,477 158,104,969 33.72 6.78 Dallas 2,277,296 87,970,421 1,624,917 690,888 181,222 31,293,535 124,038,279 28.43 5.88 San Francisco. 2,809,072 157, 716,711 345,600 3,107,245 2,251,436 , 78,743,727 244,973,791 26.00 5.97 Total, Sept., 1920 123,928,531 4,040,186,704 15,351,633 17,130,528 7,945,318 3,094,426,137 7,298,968,851 14.27 6.39 Total, Sept., 1919 122,478,924 6,115,822,300 29,801,567 10,608,322 388,454 447,055,690 6,726,155,257 9.43 4.18 1 Includes $1,322,581 in the foreign trade. 2 Includes $55,110 in dollar-exchange bills. Bankers' and trade acceptances in the foreign and domestic trade and dollar-exchange bills purchased during September, 1920; also average rates and maturities of total bills purchased by each Federal Reserve Bank. Federal Reserve Bank. Domes B tic a . n ke F rs o ' r a e c ig ce n p . tance T s. otal Domesti T c. r ad F e o r a e c i c g e n p . tances T . otal. ex D b ch i o l a l l l s n a . g r- e b c i T l h l a s o s t p e a u d l r . - m A in a v t d e u r a a r y i g s t e y . A (3 b v 6 a r e a 5 s r i t - a s e d ) g a . e y Per cent. Boston $7,792,572 823;,, 897,358 $31,689,930 $300,000 $31,989,930 35.63 6.16 New York 18,940,716 8""6',597,407 105,538,123 $116,246 $1,546,284 $1,662,530 4,528,901 111,729,554 . 31.31 5.97 Philadelphia 157,000 1,215,624 1,372,624 130,000 1,502,624 54.66 6.13 Cleveland 5,734,381 18,426,295 24,160,676 375,000 24,535,676 51.88 6.03 Richmond. 516,773 3,371,481 3,888,254 3,888,254 46.07 6.08 Atlanta 1,405,003 634,418 2,039,421 2,039,421 41.24 6.08 €hicago 7,062,075 25,114,482 32,176,557 155,759 32,332,316 58.98 6.08 St. Louis 790,000 555,000 1,345,000 1,345,000 28.64 6.29 Minneapolis 152,563 400,000 552,563 552,563 78.50 6.08 Kansas City 17,500 2,839,610 2,857,110 2,857,110 52.44 6.12 Dallas 532,500 532,500 532,500 34.20 6.08 San Francisco 9,859,548 33,256,021 43,115,569 87,525 380,547 468,072 1,100,000 44,683,641 52.54 6.05 Total, Sept., 1920... 52,960,631196,307,696 249,268,327 203,771 1,926,831 2,130,602 6,589,660 257,988,589 41.71 6.04 Total, Sept., 1919... 48,557,231153,405,199 201,962,430 479,592 2,293,845| 2,773,437 312,468 205,048,335 46.15 4.25 Amount of bills discounted and acceptances bought by each Federal Reserve Bank during July, August, and September, 1920 and 1919, distributed by maturities. 15-day maturities. 30-day maturities. 60-day maturities. Federal Reserve Bank. Discounts. A a c n c c e e p s t . - Total. Discounts. Accept- Total. Discounts. Accept- Total. Boston $892,249,618 $33,020,048 $925,269,6661151,874,459 $11,916,055 $63,790,514 $84,650,290 $25,068,039 $109,718,329 New York 13,094,658,054 178,327,724 13,272,985,778 66,549,677 54,558,752 121,108,429 85,547,990 68,847,628 154,395 618 Philadelphia 1,351,566,354 322,807 1,351,889,161 13,656,262 1,240,208 14,896,470 11,969,183 6,950,918 18,920,101 Cleveland 476,794,447 4,895,737 481,690,184 11,141,413 12,104,670 23,246,083 19,862,352 32,679,373 52,541,725 Richmond 683,477,032 298,000 683,775,032 17,550,090 3,890,350 21,440,440 44,029,454 2,396,595 46,426,049 Atlanta 440,573,686 640,000 441,213,686 18,977,852 1,274,280 20,252,132 43,762,486 1,329,928 45,092,414 Chicago 933,359,778 16,635,203 949,994,981 67,592,465 13,684,275 81,276,740 219,236,188 35,938,425 255,174,613 St. Louis 399,740,327 2,630,770 402,371,097 19,753,782 30,000 19,783,782 68,481,605 145,000 68,626,605 Minneapolis 107,754,545 107,754,545 18,053,816 259,470 18,313,286 28,533,691 175,274 28,708,965 Kansas City 309,577,732 348,352 309,926,084 16,420,595 658,692 17,079,287 41,912,696 6,329,403 48,242,099 Dallas 248,729,306 165,000 248,894,306 9,261,548 265,000 9,526,548 29,415,819 1,285,000 30,700,819 San Francisco 569,366,474 4,719,716 574,086,190 15,039,439 15,979,636 31,019,075 38,100,143 37,585,623 75,685,766 Total, 3 months ending: Sept. 30,1920 19,507,847,353 242,003,357 19,749,850,710 325,871,398 115,861,388 441,732,786 715,501,897 218,731,206 934,233,103 Sept. 30,1919 19,724,933,943 139,693,055 19,864,626,998 77,702,507 103,618,943 181,321,450 160,421,409 189,829,765 350,251,174 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1232 FEDERAL RESERVE BULLETIN. NOVEMBER, 1920. Amount of bills discounted and acceptances bought by each Federal Reserve Bank during July, August, and September T 1920 and 1919, distributed by maturities—Continued. 90-day maturities. Over 90-day maturities. Total. Federal Reserve Bank. Discounts. A a c n c c e e p s t . - Total. Discounts. A a c n c c e e p s t . - Total. Discounts. A a c n c c e e p s t . - Total. Boston $59,669,798 $9,406,554 $69,076,352 $5,135 $5,135 $1,088,449,300 $79,410,696 $1,167,859,996 New York 301,702,132 58,241,678 359,943,810 52,109 52,109 13,548,509,962 359,975,782 13,908,485,744 Philadelphia 51,872,704 1,662,512 53,535,216 17,004 17,004 1,429,081,507 10,176,445 1,439,257,952 Cleveland 50,696,549 21,331,417 72,027,966 428,107 428,107 558,922,868 71,011,197 629,§34,065 Richmond 50,750,922 5,093,245 55,844,167 2,007,192 2,007,192 797,814,690 11,678,190 809,492,880 Atlanta 85,393,220 1,423,394 86,816,614 7,496,866 7,496,866 596,204,110 4,667,602 600,871,712 Chicago 389,504,300 28,338,949 417,843,249 19,232,614 19,232,614 1,628,925,345 94,596,852 1,723,522,197 St. Louis 113,803,538 1,565,000 115,368,538 3,795,855 3,795,855 605,575,107 4,370,770 609,945,877 Minneapolis 64,626,554 3,417,546 68,044,100 8,210,635 8,210,635 227,179,241 3,852,290 231,031,531 Kansas City 67,737,346 1,098,885 68,836,231 15,859,571 15,859,571 451,507,940 8,435,332 459,943,272 Dallas 45,800,304 305,000 46,105,304 11,148,235 11,148,235 344,355,212 2,020,000 346,375,212 San Francisco 85,010,498 28,680,413 113,690,911 12,374,868 12,374,868 719,891,422 86,965,388 806,856,810 Total, 3 months ending: Sept. 30,1920.1,366,567,865 160,564,593 1,527,132,458 80,628,191 80,628,191 21,996,416,704 737,160,544 22,733,577,24^ Sept. 30,1919. 361,189,640 242,602,027 603,791,667 19,005,117 19,005,117 20,343,252,616 675,743,790 21,018,996,406 Rediscounts and sales of discounted and purchased paper between Federal Reserve Banks from July 1 to Sept. SO, 19il. [In thousands of dollars.] Rediscounted or sold by the Federal Reserve Bank of— D c is h c a o s u e n d t e b d y the o r F ed p e u ra rl ]New York. Richmond Atlanta. Chicago. Reserve Bank of— July. August. Se b p e te r. m- July. August. Se b p e te r. m- July. August. Se b p e te r. m- July. August. tem Se b p e - r. Boston 30,000 50,000 50.000 80,000 5,086 2,931 3,974 6,000 New York 16,241 20,575 11 Philadelphia 10,014 10,051 15,000 16,077 Cleveland 15,050 25,000 45,000 30.000 11,980 39,146 32,127 31 001 8 661 30 001 San Francisco 25,012 10,014 Total 35,026 35,115 55,000 95,000 ! 80,000 95,000 33,307 42,071 52,178 57,576 8,001 30,012 Purchased bills 35,02& 35,115 10,076 8,001 10,012 Discounted bills 55,000 95,000 80,000 95,000 33,307 42,071 52,178 47,500 20,000 Rediscounted or sold by the Federal Reserve Bank of— Di c s h c a o s u e n d t e b d y the o r F ed p e u ra r- l St. Louis. Minneapoli3. ]Kansas City. Dallas. Reserve Bank of— July. August. Se b p e te r. m- July. August. Se b p e t r e . m- July. August. Se b p e te r. m- July. August. tem Se b p e - r. Boston 14,999 47,977 17,998 5,500 24,000 8,500 11,035 10,800 17,160 21,500 24,000 13,000 New York 7,000 4,000 7,022 7,003 20,511 4,000 12,000 Philadelphia 13,000 4,000 Cleveland 14,000 16,999 16,500 11,500 20,500 9,017 15,711 33,067 13,750 37,502 54,750 San Francisco Total 35,999 47,977 47,997 26,000 35,500 33,000 27,074 26,511 57,230 55,761 65,502 79,750 Purchased bills Discounted bills 35,999 47,977 47,997 26,000 35,500 33,000 27,074 26,511 57,230 55,761 65,502 79,750 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

NOVEMBER, 1920. FEDERAL RESERVE BULLETIN. 1233 Rediscounts and sales of discounted and purchased paper between Federal Reserve Banks from July 1 to Sept. SO, 1920— Continued. [In thousands of dollars.] Rediscounted or sold by all Fed- Rediscounted or sold by all Federal Reserve Banks. eral Reserve Banks since Jan. 1, 1920. Discounted or purchased by the Federal Reserve Bank of— Pur- Pur- July. August. Se b p e t r e . m- Total. c b h i a l s ls e . d Dis b co il u ls n . ted Total. c b h i a l s ls e . d Dis b c i o ll u s n . ted Boston.. 114,120 159, 708 170,632 444,460 * 444,460 677,042 8,582 668,460 New York 4- 75,349 4.000 19,014 98,363 86 98,277 490,634 11,053 479,581 Philadelphia . 10,014 10,051 48,077 68 142 20,065 48,077 68,142 20,065 48, 077 Cleveland 141,248 158,904 212,444 510,596 43,053 467,543 939,203 72,710 866,493 Atlanta ... 57,087 5,087 52,000 Chicago 173,590 5,090 168,500 St. Louis 13,000 13,000 Minneapolis. 40,029 40,029 Kansas City... . . .. 25,049 5,049 20,000 Dallas 143,000 143, OOC San Francisco. 25,012 10,014 35,026 35,026 64,305 40,805 23,500 Total 365,743 340,677 450,167 1,156,587 2,691,081. Purchased bills 457102 43,116 10,012 98,230 168,441 Discounted bills .. 320,641 297,581 440,155 1 058 357 2,522,640 Discounted bills, including member banks' collateral notes, held by each Federal Reserve Bank on the last Friday in September, 1920, distributed by classes. [In thousands of dollars.] Member banks' collat- Customers' eral notes. Federal Reserve Bank. A p t g a u r p r ic e a u l r. l- Li p v a e- p s e t r o . ck s m e G c e p u o n a r v t p e e d e r w n r - b a * r y S m e G c e o u n v r t e e w d rn a b - r y j O se th 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 e k e p e s t r . - s' c A ( i c n a l o . l l m e p o . m a t h s p e . e e ) r r . r - Total. obligations. obligations. Boston 21,879 92,124 158 69,147 183,331 New York.... 140 145,158 347,052 4,688 347,083 847,059 Philadelphia.. 256 5 45,662 85,935 30 294 119 55,014 187,315 Cleveland 598 208 12,905 59,674 36 2,617 18 145,611 221,667 Richmond 9,984 107 5,911 31,696 ! 1,023 1,650 60,791 111,162 Atlanta 15,549 2,916 13,204 50,475 j 255 1,047 257 39,246 122,949 Chicago 21,060 19,471 133,930 ; 5,333 4,307 1,098 288, 709 473,908 St. Louis 4,585 2,033 10, 621 29.150 i 18 1,022 1,228 67.826 116,483 Minneapolis... 16,912 44,560 3,936 2,743 I 930 175 14', 995 84,251 Kansas City... 9,661 28,197 8,376 26,633 i 553 1,886 55 34,424 109,785 Dallas 20,249 11,462 3,074 18,136 530 531 181 22,235 76,398 San Francisco. 22,004 13,938 5,176 47,502 , 169 3,705 2,155 75,507 170,156 Total, 1920. 120,998 103,426 295,373 925,050 i 8,877 22,080 8,072 1,220,588 2,704,464 Total, 1919. 32,932 27, 273 214,027 1,358,476 ! 17,230 10,961 479 . 220,904 1,882,282 Acceptances purchased by each Federal Reserve Bank and held Sept. SO, 1920, distributed by classes of accepting institutions. [Tn thousands of dollars.] bankers' acceptances Trade acceptances. Federal Reserve Bank. M b e a m nk b s e . r m p N t c a e r o n m o u m i n s b e - t - s e . r m b S N e a t m n o a k n t b e s - e . r P b r a i n v k a s te . b a F g r b o a e a a r n n n e n c c d i k h i g e e n s s . Total. Do ti m c. es- Foreign. Total. G to r t a a n l d . Boston . 26,079 8 786 1,931 797 29 601 29 601 New York 56)092 2,397 15,249 8,665 9,333 91,736 116 2,321 2,437 94 173 Philadelphia . . 5,195 1,333 1,798 562 8,888 8,888 Cleveland 28,431 192 8,777 6,708 6,009 50,117 50 117 Richmond 7,045 7 045 7,045 Atlanta 1,894 1,894 1,894 Chicago 35,010 225 2,300 2,042 270 39,847 39 847 St Louis 1,630 250 l'88O 1,880 Minneapolis .. 1,448 50 1,498 1,498 Kansas City - 3.301 3,301 3 301 Dallas 663 663 663 San Francisco 34,188 187 10,244 8,644 8,490 61,753 <ji 460 551 62,304 Total: Sept 30, 1920 200,976 3,009 38,939 29,788 25,511 298,223 207 2,781 2,988 301,211 Auc 31 1920 202,868 2,631 41,499 31,225 21,737 299,960 1,334 5,810 7,144 307,104 Sept 30 1919.. . . . 208,784 8,255 24,821 33,420 21,873 297,153 591 2,385 2,976 300,129 Sept 30 1918 233,926 2,859 2,479 27,551 13,999 280,814 2,745 5,761 8,506 289,320 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1234 FEDERAL RESERVE BULLETIN. NOVEMBER,, 1920. OPERATIONS OF THE FEDERAL RESERVE CLEARING SYSTEM FROM SEPT. 16 TO OCT. 15, 1920. [Amounts in thousands of dollars.] Items drawn on banks in own district. Items forwarded Items forwarded Items drawn on to other to parent Located in Fed- Located outside Treasurer of Total. Federal Reserve bank or to Federal Reserve Bank eral Reserve Federal Reserve United States. Banks and branch in or branch. Bank and branch Bank or their branches. same district. cities. branch cities. Number. Amount. Number. Amount. Number. \ Amount. Number. Amount. Number. Amount. Boston 621,109 677,138 2,862,637 472,863 118,693 15,157 3,602,439 ,165,158 128,728 84,565 New York 1,109,962 190,342 4,024,590 1,424,763 ,031,356! 129,389 6,165,908 ;, 744,494 :, 021,931 648,808 f ' Buffalo 156,168 116,119 359,398 60,508 15,060; 1,218 530,626 177,845 138,048 36,339 Philadelphia 1.433,3191 912,701 1,925,131 290,980 151,919, 32,527 3,510,369 ,236,208 799,716 237,670 Cleveland 357,239! 309,429 1,168,000 214,517 49,596; 4,821 1,574,835 528,767 33,464 36,870 38,920 16,235 t, Cincinnati i. 169,219 165,894 781,035 101,330 42,8931 3,443 993,147 270,667 15,235 20,984 9,645 4,786 ' . ^Pittsburgh 311,128 367,265 752,001 107,168 43,438! 6,194 1,106,5671 480,627 62,837 57,940 29,382 9,336 Richmond * 112,729 173,887 1,565,058 307,853 43,718 5,513 1,721,505 487,253 129,230 78,974 8,027 11,950 Baltimore 196,678 202,054 686,532 95,462 52,160 11,272 935,370 308,788 156,673 130,881 9,685 10,170 Atlanta* 110,118: 80,183 311,180 69,046 15,532 4,171' 436,830 153,400 22,389 20,387 53,405 9,861 Birmingham 41,890 23,586 145,966 14,121 11,626 1,076! 199,482j 38,783 16,999 13,666 24,6211 42,751 Jacksonville 31,202 21,037 112,362 14,151 11,125, 982| 154,689; 36,170 24,887 7,697 6,319; 2,114 Nashville* 43,5741 38,944 194,356 25,635 14,163 1,194 252,093| 65,773 28,554 4,794 13,8461 2,657 New Orleans 57,955 66,052 97,108 17,970 16,903 2,758 171,966! 86,780 48,235i 12,779 6,110 1,179 Chicago 762,433 851,681 3,377,834 466,132 295,274 55,800 4,435,54lf ,373,613 302,025 52,965 11,906! 5,790 Detroit* 216,225 228,747 368,014 54,661 31,327 2,685 615,566 286,093 9,887 15,191! 6,380 1,744 St. Louis* 254,245 317,583 1,356,237 115,715 116,179 8,875 1,726,661 442,173 27,332! 9,298 14,915 1,922 Little Rock 41,085 28,417 277,011 21,641 5,911 1,332 324,007 51,390 7,094; 29,629 4,325 Louisville 83,900 72,249 354,944 29,266 25,965 3,429 464,809 104,944 8,985 2'367| 2,645 511 Memphis * 68,711 37,562 147,024 12,024 8,009 1,485 223,744 51,071 2,489 9751 3,999 1,165 Minneapolis * 267,748 190,378 1,746,467 149,915 40,702 4,269 2,054,917 344,5621 110,419 45,187j. Kansas City* 254,784 371,290 2,034,220 167,626 92,248 7,876 2,381,252 546,792 281,639 75,811! 118,875 31,981 Denver * 76,899 75,795 351,431 31,651 17,405 2,723 445,735j 110,169 95,572 23,2291 49,744 21,036 Oklahoma City*.. 44,398 78,655 941,312 116,758 985,710 195,413 36,694 11,922 19,816 17,976 Omaha 90,018 73,792 545,048 52,456 40,101 2,432 675,167 128,680 35,624 9,490 19,148 10,395 Dallas 81,844 94,023 1,617,614 330,567 25,460 3,556 1,724,918 428,146 78,006 40,447! 65,275 13,747 El Paso 31,726 12,966 122,990 13,828; 11,896 2,955 166,612 29,749 18,147 7,960! 13,3421 2,787 Houston 63,238 60,324 370,127 57,889 43,113 2,408 476,478 120,621 17,688 37,497 11,372 3,102 San Francisco. 126,910 117,545 329,216 38,058 53,669 70,590 509,795 226,193 24,069 4,806 53,602i 9,188 Los Angeles. 128,947 104,930 742,482 66,266 19,687 11,067 891,116) 182,263 62,712 9,710 26,965! 5,289 Portland 54,725 45,171 197,100 15,790 17,750 7,774 269,575 68,735 2,975 1,787 30,500 5,004 Salt Lake City.... 57,211 33,689 377,284 41,327 12,832 4,960 447,327 79,976 11,794 21,727 8,225; 10,980 Seattle 58,024 49,369 207,615 19,730 25,519 12,500 291,158 81,599 16,706 6,091 34,096; 6,557 Spokane 28,490 24,324 163,605 16,272 9,415 967 201,510 41,563 7,595 2,374; 18,591' Total: Sept. 15 to Oct. 15, 1920 7,543,851 8,213,121301,,612,929 5,033,939 2,510,644 427,398,40,667,424| 13,674,458! 3,784,3781 1,773,070 794,991; 305,812 Aug. 16 to Sept. 15, 1920 7,303,690 7,700,391291,,237,412 4,613,487 1,992,827 564,334J38,533,929 12,878,212 2 3,584,781 2 1,627,567 853,084 311,877 Sept. 16 to Oct. 15, 1919 5,515,877 7,130,239 191,,530,165 4,309,693 2,354,925 1,132,918 27,400,967 12,572,850 3 2,719,102 31,632,134 589,404; 291,035 Number of member Number Of nonmem- Number of incorpobanks in district Oct. ber banks on par list rated banks other than 15— Oct. 15— mutual savings banks Federal Reserve district. not on par list Oct. 15— 1920 1919 1920 1919 1920 1919 Boston. * 434 430 258 242 New York 782 746 322 322 Philadelphia.. 696 674 434 409 Cleveland 867 841 1,072 1,025 64 Richmond 610 575 778 443 800 1,019 Atlanta 448 431 416 348 1,220 Chicago 1,403 1,363 4,278 3,211 986 St. Louis 568 530 2,516 1,848 174 801 Minneapolis... 992 909 2,920 1,504 1,369 Kansas City... 1,083 1,019 3,395 2,828 451 Dallas 842 748 1,258 750 405 San Francisco. 819 1,028 922 142 Total. 9,544 8,955 18,675 13,852 6,457 * NOTE.—Number of business days in period was 25 in all Federal Reserve Bank and branch cities except in those marked with an asterisk, where the number was 26. 1 Includes 7,078 items, amounting to $2,640,000 forwarded direct to member banks in other Federal Reserve Districts. 2 Includes 7,210 items, amounting to $2,115,000 forwarded direct to member banks in other Federal Reserve Districts, s Includes 5,055 items, amounting to $2,999,000 forwarded direct to member banks in other Federal Reserve Districts. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

NOVEMBER, 1920. FEDERAL RESERVE BULLETIN. 1235 CHANGES IN CONDITION OF FEDERAL A summary of the weekly changes in the RESERVE BANKS. principal asset and liability items of the Federal Reserve Banks follows: During the four weeks between September 24 and October 22 the Federal Reserve Banks Principal asset and liability items of the 12 Federal Reserve increased their holdings of discounted bills by Banks combined on Fridays, Sept 24 to Oct. 22, 1920. about 45 millions, from 2,704 to 2,749 millions, [In millions of dollars.] the largest increase for the period occurring during the week ending October 8, when con- Sept. Oct. Oct. Oct. Oct. siderable net withdrawals of Government funds 24. 1. 8. 15. 22. caused the member banks to rediscount more heavily with their Federal Reserve Banks. Reserves: Total 2,152 2,165 2,158 2,155 2,157 The increase in discounts held does not affect Gold 1,990 2,003 1,996 1,992 1,995 Bills discounted: paper secured by United States war obligations Total 2,704 2,710 2,796 2,774 2,749 (including Treasury certificates), the holdings Secured by Government war obligations 1,220 1,183 1,217 1,193 1,199 of which, after a 34 million increase during the Allother 1,484 1,527 1,579 1,581 1,550 early part in October, declined to 1,199 millions Bills bought in open market 308 302 306 320 301 Certificates of indebtedness 271 271 274 302 281 on October 22, marking a decrease of over 21 Total earning assets 3,310 3,310 3,402 3,422 3,358 Government deposits 46 46 43 14 15 millions for the period under review. Other Members' reserve deposits 1,801 1,776 1,826 1,868 1,779 discounted paper, on the other hand, shows con- Net deposits 1,658 1,646 1,710 1,695 1,624 Federal Reserve notes in circulatinuous advances for the first 3 weeks to 1,581 tion 3,280 3,305 3,322 3,353 3,356 Federal Reserve Bank notes in millions, and on October 22 stood at 1,550 circulation 214 213 213 214 214 millions, or about 66 millions above the total R eserve percentage 43.6 43.7 42.9 42.7 43.3 reported four weeks before. Fiscal operations of the Government in- From about 55 per cent on September 24 ; cluded the payment on October 15 of the half- the share of 15-day paper in the total discounts yearly interest on the fourth Liberty bonds, held increased to nearly 60 per cent on October the redemption on the same date of the bulk 8. Two weeks later this class of paper had of the outstanding balance of about 118 millions declined to 56 per cent of the total discounts of loan certificates issued six months previous, held. Changes in the holdings of 30-day paper and the issuance of over 124 millions of tax cer- are in the reverse order, though changes m the tificates, besides the gradual withdrawal from holdings of 15-day paper are apparently due as depositary institutions of balances due to the much, if not more, to new short-term borrow- Government on account of the more recent ing by the member banks as to the gradual certificate issues. On October 15 the Anglo- maturing of 30-day paper into the 15-day French bonds issued 5 years ago fell due, neces- class. Holdings of 90-day paper show a slow sitating the redemption by the fiscal agents but steady increase, while those of 6-month of the foreign Governments concerned of about agricultural and live-stock paper at the close 200 millions of these securities. The effect of the period—about 23 millions—were 3.4 of these operations may be seen in an increase millions below the September 24 total. of 27.7 millions in the Federal Reserve Bank Holdings of acceptances purchased in open holdings of Treasury certificates between Oc- market fluctuated between 319.5 millions on tober 8 and 15, largely to cover overdrafts of October 15 and 300.7 millions a week later. the Government, and in an increase of 13.-8 Treasury certificates on hand increased from millions in the holdings of purchased bills, 270.6 millions on September 24 to 301.7 millions rather than in any increase of the amount of on October 15, when six of the Federal Reserve discounted bills held. Federal Reserve Bank Banks reported 26 millions of special certifiholdings of paper secured directly or indirectly cates to cover advances to the Government by Treasury certificates declined from 268 to pending receipt of funds from depositary in- 241 millions, constituting slightly over 20 per stitutions. By the following Friday the Treascent of all the war paper held on October 22, ury had outstanding only 10 millions of such while holdings of paper secured by Govern- certificates which were held by four reserve ment war obligations proper, i. e., Liberty banks. bonds and Victory notes, show a slight increase Interbank discounting shows further growth from 952 to 958 millions during the four weeks in volume, the total of paper held under disunder review. Of the total amount of dis- count for other Reserve Banks showing an counted paper carried on October 22 by the increase from 226.9 to 243.1 millions, held by Federal Reserve Banks, the share of paper the Boston, Philadelphia, and Cleveland banks. secured by Government obligations was 43.6 The latter bank on October 22 reports a total per cent, compared with over 45 per cent of 137.9 millions of paper discounted for other shown four weeks earlier. Reserve Banks, compared with 79.3 millions of Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1236 FEDERAL RESERVE BULLETIN. NOVEMBER, 1920. paper held under discount for its own members, from 34.9 to 21.9 millions. Calculated net while over 40 per cent of the Boston bank's deposits reached a high of 1,710.2 millions on discounts are for other Reserve Banks. The October 8, but declined to 1,624.5 millions list of accommodated Reserve Banks includes, during the following two weeks. besides the seven banks in the South and Federal Reserve note circulation shows a Middle West shown about the close of Sep- further expansion during the four weeks from tember, also the New York bank. Among the 3,280 to 3,356.2 millions, or at an average rediscounting banks are found all the four weekly rate of over 19 millions. A considerbanks which appfy graduated discount rates. able proportion of the increase in circulation During the four weeks under review three of is due to shipments of Federal Reserve notes these banks, viz, those of Atlanta, St. Louis, to Cuba from the New York and Atlanta disand Kansas City, increased their member tricts. Practically no change is shown in the bank discounts from 473 to 490.7 millions, circulation of Federal Reserve Bank notes. while their combined liabilities on account of During the period under discussion the g aper rediscounted with other Federal Reserve amount of gold held with foreign agencies de- •anks show but a slight increase, from 123.7 clined from 111.5 to 80.4 millions as the result millions to 123.9 millions. In the case of of transfers to the Federal Reserve Banks of the Dallas bank a reduction in total member part of the gold held earmarked by the Bank bank discounts, from 113.8 to 108.7 mil- of England since September, 1919. These lions, is accompanied by a decrease of inter- transfers, while figuring among the gold imbank accommodation from 37.4 to 33.9 mil- ports of the period, do not affect the total lions. Holdings of acceptances purchased from gold reserves of the Federal Reserve Banks, other Reserve Banks fluctuated between 19.9 since gold held with foreign agencies was millions on October 1 and 34.9 millions two always counted as part of the Reserve Banks' wepfc later. At the end of the period the total gold reserves. Total gold reserves, notwithwas^ 24.3 millions, composed of bank accept- standing considerable withdrawals for export TOcei sold by the New York bank without to the Far East more than held their own, ; indorsement to the Boston, Philadelphia, and largely because of substantial receipts from San Francisco banks. No change is shown in England and France, and on October 22 stood ttie banks' aggregate guarantors' liabilities of at 1,994.6 millions, or 4.8 millions above the 16.2 millions on bankers' bills purchased for September 24 total. Total cash reserves show account of foreign correspondents. a slightly larger increase during the period ., Government deposits show a decline during from 2,151.6 to 2,157.3 millions. tHe period from 46.5 to about 15 millions. The banks' reserve ratio shows an almost Members' reserve deposits, after reaching a steady decline from 43.6 per cent on Septem- High 'of 1,868 millions on October 15, declined ber 24 to 42.7 per cent on October 15. On the to: 1,779 millions on the following Friday, following Friday, largely by reason of the 'while other deposits, composed largely of for- liquidation in some volume of bills and Treaseign Government credits and nonmembers' ury certificates and a corresponding reduction in clearing accounts, declined during the period deposit liabilities, the ratio rose to 43.3 per cent. Resources and liabilities of each Federal Reserve Bank at close of business on Fridays, Oct. 1 to Oct. 22, 1920. RESOURCES. [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 - . la A n t t - a. Chicago. Lo S u t. is. M ap i o n l n is e . - City. Dallas. F c S i r s a a c n n o - . Total. Gold and gold certificates: Oct.l.. 7,660 110,897 1,417 10,443 2,402 7,434 24,492 3,205 7,210 652 4,901 20,333 201,046 Oct. 8 7,696 133,402 1,403 10,465 2,410 7,549 24,665 3,122 7,206 4,684 13,475 216,763 Oct. 15 7,823 110,165 1,391 10,477 2,416 6,644 24,708 3,015 7,179 4,728 13,289 192,499 Oct. 22.... 7,884 78,567 1,363 10,517 2,436 6,360 24,405 2,910 7,198 676 4,915 14,207 161,438 Gold settlement fund—Federal Reserve Board: Oct.l.. 46,199 42,729 45,243 80,863 23,863 7,447 41,466 6,745 8,526 24,875 3,936 30,576 362,468 Oct.8 : 49,149 37,807 47,868 75,508 28,163 6,384 44,897 13,373 8,637 20,692 10,321 49,175 391,974 Oct. 15 54,555 63,835 34,991 61,858 22,496 4,736 54,468 7,535 10,057 25,685 5,362 36,175 381,753 Oct.22. 27,835 46,425 55,179 81,619 26,049 6,120 54,147 13,224 8,613 25,326 4,132 40,400 389,069 Gold with foreign agencies: Oct.l. 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 Oct.8. 6,535 32,856 7,162 7,660 4,387 3,223 11,117 4,208 2,417 4,297 2,429 4,118 90,409 Oct. 15. 6,322 31,780 7,101 4,243 3,118 10,653 4,070 2,338 4,157 2,328 3,983 87,021 Oct.22. 5,878 29,473 6,442 6,603 3,945 2,898 9,582 3,784 2,174 3,865 2,093 3,704 80,441 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

NOVEMBER, 1920. FEDERAL RESERVE BULLETIN. 1237 Resources and liabilities of each Federal Reserve Bank at close of business on Fridays, Oct. 1 to Oct. 22, 1920—Continued. RESOURCES-Continued. [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 . - la A n t t - a. Chicago. Lo S u t. is. M ap i o n l n is e . - K C a i n ty s . as Dallas. F ci r s a c n o - . Total. Gold with Federal Reserve agents: Oct. 1 134,999 266,519 121,610 142,238 44,403 52,647 188,930 47,580 27,569 39,959 29,613 84,326 1,180,393 Oct. 8 133,424 235,642 123,753 140,674 42,494 52,554 187,099 48,328 27,312 40,979 28,911 81,242 1,142,412 Oct. 15 130,915 234,475 129,794 140,037 45,332 58,479 183,486 48,421 27,691 41,061 30,767 98,580 1,169,038 Oct. 22 143,801 264,013 119,942 141,977 43,744 64,740 181,264 49,396 27,264 41,219 29,610 96,270 1,203,240- Gold redemption fund: - Oct. 1 18,440 35,982 9,275 12,408 7,572 6,656 25,106 6,224 3,235 4,105 5,030 13,677 147,710 Oct. 8 19,499 37,925 10,406 13,486 8,750 7,540 26,315 5,670 3,447 4,703 5,396 11,629 154,766 Oct. 15 21,385 37,924 11,002 14,800 9,762 5,686 29,551 6,156 2,759 4,188 5,666 12,911 161,790 Oct. 22 17,707 37,911 11,613 13,725 10,583 6,513 31,203 5,588 2,912 4,648 6,446 11,574 160,423 Total gold reserves: Oct. 1 215,434 497,032 186,461 255,091 83,701 78,197 293,257 68,992 49,549 74,941 46,378 154,039 2,003,072 Oct. 8 216,303 477,632 190,592 247,793 86,204 77,250 294,093 74,701 49,019 71,357 51,741 159,639 1,996,324 Oct. 15 221,000 478,179 184,106 234,273 84,249 78,663 302,866 6.9,197 50,024 75,755 48,851 164,938 1,992,101 Oct. 22 203,105 456,389 194,539 254,441 86,757 86,631 300,601 74,902 48,161 75,734 47,196 166,155 1,994,611 Legal-tender notes, silver, etc.: O Oc c t. t.l 8 6 6 , , 5 7 6 4 4 5 1 1 2 2 7 7 , , 9 8 9 3 3 4 1, 9 0 3 1 1 8 2 2 , , 6 2 4 2 2 5 t 402 1 1, , 3 2 9 4 8 5 9 9, , 1 1 0 8 3 8 7 7, , 4 6 7 2 9 2 1 1 3 2 8 1 1 1, , 8 9 6 1 0 5 2 2 , , 9 7 0 9 0 1 5 5 8 4 3 4 1 1 6 6 2 1 , , 1 9 2 4 3 4 Oct. 15 7,072 129,281 923 2,056 697 1,518 8,719 7,330 227 1,930 2,637 420 162,810 Oct. 22 7,912 128,429 735 1,983 675 1,547 8,675 7,204 145 1,935 3,014 405 162,659 Total reserves: Oct.l - 221,998 625,025 187,392 257,733 84,103 79,442 302,445 76,614 49,687 76,856 49,278 154,622 2,165,195 Oct. 8 223,048 605,466 191,610 250,018 87,030 78,648 303,196 82,180 49,140 73,217 54,532 160,183 2,158,268 Oct. 15 228,072 607,460 185,029 236,329 84,946 ~ 1,181 311,585 76,527 50,251 77,685 51,488 165,358 2,154,911 Oct. 22 211,017 584,818 195,274 256,424 87,432 I 88,178 309,276 82,106 48,306 77,669 50,210 166,560 2,157,270 Bills discounted:1 Secured by Government war obligations— Oct.l 106,750 490,677 123,844 53,013 36,537 64,294 147,384 38,978 11,043 35,238 21,551 53,708 1,183,017 Oct. 8 104,042 509,645 121,544 69,684 36,155 65,713 146,537 38,394 9,166 38,179 22,798 55,241 1,217, .098 Oct. 15 79,580 500,403 130,095 77,189 39,823 63,693 142,738 40,153 10,256 35,736 19,756 53,388 1,192,810 Oct. 22 98,133 521,930 116,581 61,004 37,129 68,365 144,874 39,241 8,308 29,431 18,358 55,785 1,199,139 All other— Oct.l 77,462 383,453 62,049 148,350 73,342 57,379 325,364 80,034 73,691 71,866 52,752 120,842 1,526,584 Oct. 8 78,283 434,576 54,544 153,493 72,457 56,983 325,411 77,212 78,054 71,614 54,919 121,027 1,578,573 Oct. 15 75,708 446,646 59,161 150,359 71,240 61,452 325,682 79,990 73,677 70,991 53,986 112,168 1,581,060 Bills bou O g c h t. t i 2 n 2 open market:2 75,946 407,365 54,392 156,166 72,759 68,939 315,268 79,465 75,282 81,256 56,392 106,913 1,550,143 Oct.l 30,038 96,465 8,255 49,586 6,932 1,886 39,786 1,880 1,498 3,534 585 61,065 301,510 Oct. 8 30,045 97,752 18,221 48,378 6,184 2,393 41,573 960 1,408 3,160 310 55,306 305,690 Oct. 15 49,494 81,784 19,880 46,250 5,908 2,743 49,183 1,428 1,358 2,478 1,265 57,749 319,520 Oct. 22 42,901 73,564 18,803 40,350 5,261 2,690 50,325 1,210 2,272 1,370 60,927 300,666 United States Government bonds: Octl 555 1,462 1,434 834 1,233 113 4,490 1,153 116 8,867 3,966 2,632 26,855 Oct8 555 1,462 1,434 834 1,233 114 4,490 1,153 116 8,867 3,966 2,632 26,856 Oct 15 555 1,462 1,434 834 1,233 113 4,490 1,153 116 8,867 3,966 2,633 26,856 Oct. 22 555 1,462 1,434 834 1,233 114 4,490 1,153 116 8,867 3,966 2,632 26,856 United States Victory notes: Oct. 1 ". 5 50 10 1 69 Oct. 8 5 50 10 1 69 Oct. 15 50 10 1 69 Oct. 22 . 50 10 1 United States certificates of indebtedness: Oct. 1 21,578 69,513 31,458 23,299 12,262 15,666 39,728 17,297 8,481 12,826 8,300 11,074 271,482 Oct. 8 21,593 71,958 31,361 23,299 12,262 15,668 39,633 17,363 8,481 12,826 8,300 11,207 273,951 Oct. 15. 32,581 79,558 35,505 23,299 13,262 16,666 42,631 17,353 8,516 12,826 8,300 11,164 301,661 Oct. 22 22,655 74,242 31,960 24,299 12,262 15,666 41,614 17,340 8,482 12,826 8,300 11,1.61 280,807 Total earning assets: Oct. 1... 236,388 1,041,620 227,040 275.092 130,306 139,341 556,752 139,342 94,829 132,332 87,154 249,321 3,309.517 Oct. 8 234,523 1,115,443 227.104 295', 698128,291 140,874 557,644 135,082 97,225 134,647 90,293 245,413 3,402,237 Oct. 15 237,923 1,109,903 246,075 297,941 131,466 144,670 564,724 140,077 93,923 130,899 87,273 237,102 3,421,976 Oct. 22 240,195 1,078,613 223,170 282,663 128,644 155,777 556,571 138,192 93,398 134,653 88,386 237,418 3,357,680 Bank premises: Oct. 1 1,877 4,026 652 1,172 1,206 620 2,123 866 848 1,230 232 15,455 Oct. 8 1,950 4,028 657 1,177 1,253 622 2,128 603 885 1,233 232 15,634 Oct. 15 2,045 4,028 657 1,178 1,285 622 2,128 603 885 1,237 232 15,766 Oct. 22 2,066 4,101 657 1,178 1,285 623 2,128 866 885 1,240 232 15,864 Uncollected items and other i deductions from gross deposits: Oct. 1 61,915 175,194 69,142 79,494 56,350 28,785 113,953 44,147 23,402 69,162 54,893 43,843 820,280 Oct. 8 53,273 158,049 63,667 73,208 57,983 30,774 108,807 52,379 27,565 73,629 54,339 43,050 796,723 Oct. 15 81,203 218,462 89,263 102,216 70,187 31,780 122,330 57,901 28,589 72,948 71,007 52,602 998,488 Oct. 22 61,489 163,434 70;958 83,455 62,666 30,898 103,838 46,527 28,059 69,508 57,867 47,041 825,740 5 per cent redemption fund against Federal Reserve Bank notes: Oct. 1 1,072 2,481 1,300 1,139 451 499 1,745 573 429 916 586 665 11,856 Oct. 8 1,072 2,528 1,300 1,139 451 527 1,516 343 586 665 11.666 Oct. 15 1,072 2,549 1,300 1,139 451 506 1,866 623 485 916 586 665 12,158 Oct. 22 1,072 2,595 1.300 1,139 451 503 2,486 623 617 916 586 665 12,953 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1238 FEDERAL RESERVE BULLETIN. NOVEMBER,, 1920'. Resources and liabilities of each Federal Reserve Bank at close of business on Fridays, Oct. 1 to Oct. 22, 1920—Continued. RESOURCES-Continued. [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 - . la A n t t - a. Chicago. Lo S u t. is. M ap i o n l n is e . - K C a i n ty sa . s Dallas. F c S i r s a a c n n o - . Total. All other resources: Oct. 1 394 768 545 251 589 233 464 382 90 306 1,013 379 5,414 Oct. 8 338 921 601 267 401 179 507 383 74 295 565 302 4,833. Oct. 15 344 1,004 633 280 511 273 968 521 84 309 1,691 333 6,951 Oct. 22 341 969 644 240 398 191 815 439 94 328 606 336 5,401 Total resources: Oct 1 . 523,644 1,849,114 486,071 614,881 273,005 248,920 977,482 261,924 169,040 280,420 194,154 449,062 6,327,717 Oct. 8 514,204 1,886,435 484,939 621,507 275,409 251,624 973,798 271,513 174,950 283,589 201.548 449,845 6,389,361 Oct 15 550,659 1,943,406 522,957 639,083 288,846 258,032 1,003,601 276,515 173,935 283,642 213,282 456,292 6,610,250 Oct. 22 516,180 1,834,530 492,003 625,099 280,876 276,170 975,114 268,753 171,077 283,959 198,895 452,252 6,374,908 1 Includes bills discounted ior other Federal Reserve Banks: Oct 1 52,641 19,003 31,485 122,906 226,035 Oct. 8 52,450 30,577 140,440 223.467 Oct 15 43,694 32,384 139,032 215,110 Oct 22 . . 72,926 32,273 137,874 243,073 2Includes bankers' acceptances bought from other Federal Reserve Banks without their indorsement: Oct 1 4,911 10,000 4,951 19,862 Oct 8 13,711 9,441 2,073 25 225 Oct 15 15,000 12,525 6,030 1,345 34 900 Oct 22 12,970 10,449 886 24,300 LIABILITIES. I Capital paid in: Oct 1 7,644 25,272 8,417 10,253 5,214 3,926 13,720 4,304 3,334 4,439 6,867 97,358- Oct. 8... 7,644 25,294 8,417 10,299 5,216 3,930 13,720 4,306 3,337 4,505 3,970 6,881 97,519' Oct. 15 7,644 25,297 8,426 10,299 5,242 3,948 13,720 4,306 3,353 4,505 3,970 6,884 97,594 Oct. 22 7,644 25,307 8,426 10,300 5,257 3,958 13,759 4,307 3,384 4,506 3,973 6,871 97,692- Surplus fund: Oct.l 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- Oct.8 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 Oct. 15 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 Oct. 22. 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: Oct.l 3,183 16,082 6,190 3,350 3,715 1,621 2,389 1,492 1,241 2,153 1,939 3,099 46,454 Oct.8 1.394 16,979 3,147 3,254 1,116 1,868 2,253 2,246 1,274 1,987 2,906 4,941 43,365 Oct. 15 982 257 1,451 385 634 380 2,104 659 2,607 1,362 1,213 13,975 Oct. 22 1,120 453 1,153 872 1,212 1,557 2,079 560 2,156 1,144 1,870 15,015 Due to members—reserve account: Oct.l 119,201 685,654 109,370 151,567 56,032 49,147 253,824 61,165 44,120 79,312 49,493 117,358 1,776,24a Oct.8 1118,387 726,592 109,681 152,246 57,835 49,066 256,476 62,053 46,261 76,358 52,023 118,928 1,825,906 Oct.15 ! 130,876 744,132 116,781 151,757 60,357 46,585 265,154 61,729 46,389 73,119 50,957 120,180 1,868,016 Oct. 22 |121,882 675,180 111,057 153,453 58,707 44,455 253,555 61,757 42,490 79,140 53,190 124,479 1,779,345- Deferred availability items: Oct.l I 49,622 110,846 51,483 61,938 44,420 23,925 78,306 39,410 22,281 58,057 34,552 33,216 608,056 Oct.8 | 43,364 108,667 49,523 60,801 46,379 25,560 68,922 47,132 24,984 62,298 37,502 34,848 609,980- Oct. 15 | 67,652 147,614 76,937 81,555 56,792 24,311 91,057 50,747 24,611 64,016 50,644 40,951 776,887 Oct. 22 48,735 115,444 57,869 07,338 49,742 26,209 72,296 43,169 25,289 58,983 34,275 34,748 634,097 Other deposits, including foreign Government credits: Oct.l ! 1,097 16,745 1,425 1,427 603 2,283 666 431 8,707 i 35,36a Oct.8 i 867 15,333 1,264 1,733 472 423 2,763 681 513 760 362 2,477 i 27,648 Oct. 15 I 1,315 20,077 2,043 957 598 457 2,174 949 451 856 381 3,482 33,740 Oct. 22 I 566 12,252 1,032 1,273 278 347 2,145 525 440 456 277 2,338 21,929 Total gross deposits: I Oct.l....: 173,103 829,327 168,468 218,282 104,770 75,161 336,802 102,948 68,272 140,188 86,415 162,380 12,466,116 Oct.8 1164,012 867,571 163,615 218,034 105,802 76,917 330,414 112,112 73,032 141,403 92,793 161,194 2,506,899 Oct. 15 i200,825 912,080 197,212 236,210 118,132 71,987 358,765 115,529 72,110 140,598 103,344 165,826 2,692,618" Oct. 22 172,303 803,329 171,111 222,903 109,599 72,223 329,553 107,530 68,779 140,735 163,435 2,450,386 Federal reserve notes in actual circulation: Oct.l j309,586 866,091 270,892 345,751 141,463 147,538 554,238 135,888 81,964 108,823 89,940 252,516 3,304,690 Oct.8 308,936 864,895 274,065 352,480 143,056 147,883 555,872 136,084 82,958 110,566 90,947 254,381 3,322,123- Oct. 15 308,155 875,737 278,147 351,657 143,871 158,982 556,684 137,565 82,824 111,394 92,042 256,213 3,353,271 Oct.22 301,833 875,027 273,103 350,553 144,001 176,408 556,587 137, 770 83,190 111,456 91,974 254,297 3,356,199 Federal Reserve Bank notes in circulation, net liability: Oct.l 16,648 40,219 21,333 21,916 11,233 12,764 36,545 10,321 15,651 7,724 10,962 213,412 Oct.8 16,733 39,113 21,681 21,791 10,900 13,253 37,021 10,426 8,129 15,649 7,627 10,831 213,154 Oct. 15 16,922 39.506 21,615 21,684 11,101 13,358 37,051 10,374 8,096 15,520 7,683 10,623 213,533 Oct. 22 17,119 38;989 21,625 21,776 11,346 13,620 37,309 10,287 8,033 15,345 7,744 10,645 213,838 All other liabilities: Oct.l 4,312 36,897 3,892 4,967 2,258 2,481 12,260 2,579 2,196 2,924 1,955 4,675 81,396- Oct.8 4,528 38,254 4,092 5,191 2,368 2,591 12,854 2,701 2,316 3,071 2,059 4,896 84,9.1 Oct. 15 4,762 39,478 4,488 5,521 2,433 2,707 13,464 2,857 2,374 3,230 2,091 5,084 Oct. 22 4,930 40,570 4,669 5,855 2,606 2,911 13,989 2,975 2,513 3,522 2,166 5,342 92,04S Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

NOVEMBER, 1920. FEDERAL RESERVE BULLETIN. 1239 Resources and liabilities of each Federal Reserve Bank at close of business on Fridays, Oct. 1 to Oct. 22, 1920—Continued. LIABILITIES—Continued. [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 - . la A n t t - a. Chicago. Lo S u t. is. M ap i o n l n is e . - K C a i n ty sa . s Dallas. F c S i r s a a c n n o - . Total. Total liabilities: Oct. 1 523,644 1,849,114 486,071 614,881 273,005 248,920 977,482 261,924 169,040 280,420 194,154 449,062 6,327,717 Oct. 8 514,204 1,886,435 484,939 621,507 275,409 251,624 973,798 271,513 174,950 283,589 201,548 449,845 6,389,361 Oct 15 550,659 1,943,406 522,957 639,083 288,846 258,032 1,003,601 276,515 173,935 283,642 213,282 456,292 6,610,250 Oct. 22 516,180 1,834,530 492,003 625,099 280,876 276,170 975,114 268,753 171,077 283,959 198,895 452,252 6,374,908 Ratio of total reserves to net deposit and Federal Reserve note liabilities combined—percent: Oct. 1 52.8 41.1 50.6 53.2 44.3 41.0 38.9 39.4 39.2 42.7 40.6 41.7 43.7 Oct 8 53.1 38.5 51.2 50.3 45.6 40.5 39.0 42.0 38.3 41.1 42.1 43.0 42.9 Oct. 15 53.3 38.7 47.9 48.7 44.3 40.3 39.3 39.2 39.8 43.4 41.4 44.8 42.7 Oct. 22 51.1 38.6 52.3 52.3 45.8 40.5 39.5 41.3 39.0 42.5 40.9 44.9 43. a MEMORANDA.. Contingent liability as indorser on discounted paper rediscounted with otner Federal reserve banks: Oct.l 25,000 48,856 18,550 35,051 18,631 41,986 37,961 226,035 Oct. 8 24,234 47,496 17,750 39,384 19,749 40,166 34,688 223,467 Oct. 15 20,000 44,642 14,500 35,348 23,272 43,063 34,285 215,110 Oct. 22 25,000 19,900 37,758 13,050 40,410 27,204 45,807 33,944 243,07a Bankers' acceptances sold to other Federal reserve banks without indorsement: Oct.l 9,862 10,000 19,862 Oct. 8 15,784 9,441 25,225 Oct. 15 28,870 6,030 34,900 Oct. 22 . 24,305 21 305 Contingent liability on bills purchased for foreign correspondents: Oct.l 1,168 6,076 1,280 1,312 784 576 1,904 752 432 768 416 736 16,204 Oct.8 ... 1,168 6,080 1,280 1,312 784 576 1,904 752 432 768 416 736 16,208 Oct. 15 1,168 6,081 1,280 1,312 784 576 1,904 752 432 768 416 736 16,209 Oct 22 1,168 6,081 1,280 1,312 784 576 1,904 752 432 768 416 736 16,209 Maturities of bills discounted and bought, also of Treasury certificates of indebtedness. [In thousands of dollars.] W d it a h y in s. 15 1 d 6 a t y o s . 30 3 d 1 a y to s . 60 6 d 1 a t y o s 9 . 0 O d v a e y r s 9 . 0 Total. Bills discounted: Oct.l .. 1,515,472 307,789 514,192 346,734 25,414 2,709,601 Oct 8 1,618,998 281,399 516,868 356,532 21,874 2,795,671 Oct. 15 1,551,801 295,140 547,622 356,779 22,528 2,773,870 Oct. 22... 1,558,148 304,552 497,628 365,967 22,987 2,749,282* Bills bought: Oct 1 106,484 92,432 85,555 17,039 301,510 Oct. 8 121,443 55,922 105,890 22,435 305,690- Oct. 15 . . .. 138,646 56,543 97,466 26,865 319,520 Oct 22 107,424 77,329 88,171 27,742 300,666 United States certificates of indebtedness: Oct.l 23,748 13,500 18,870 23,260 192,104 271,482" Oct 8 19,547 14,000 22,284 22,328 195,792 273,951 Oct. 15 . . . . ... 54,957 6,400 25,293 19,877 195,134 301,661 Oct 22 33,641 5,650 31,090 14,993 195,433 280,807 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1240 FEDERAL RESERVE BULLETIN. NOVEMBEK, 1920. FEDERAL RESERVE NOTES. Federal Reserve agents1 accounts at close of business on Fridays, Oct. 1 to Oct. 22, 1920. [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 te le n v d e . - i j m R o ic n h d - . la A n t t - a. Chicago. Lo S u t. is. M ap i o n l n i e s. - K C a i n t s v a . s Dallas. F c S i r s a a c n n o - . Total. RESOUKCES. Federal Reserve notes on hand: Oct.l 64,600 143,000 35,880 27,680 26, 71,675 60,640 20,480 7,040 6,270 16,480 5,380 485,523 Oct. 8 67,300 143,000 28,280 25,400 26,538 69,705 62,520 19,220 5,040 6,970 13,660 4,880 472,513 Oct. 15 71,100 140,800 35,280 31,200 24,078 61,465 58,760 18,020 7,270 6,920 12,715 4,880 472,488 Oct. 22 71,700 141,000 35,280 28,800i 24,219 51,955 57,480 16,620 8,020 6,920 12,295 4,880 459,169 Federal Reserve notes outstanding: Oct.l 323,686 974,483 284,618 367,726 146,998 152,142 624,505 153,564 82,960 114,026 93,252 285,189 3,603,149 Oct.8 326,111 973,365 289,361 369,961 148,309 153,538 626,554 154,582 84,203 115,406 95,370 288,966 3,625,726 Oct. 15 321,802 980,188 289,402 368,524 150,567 162,663 627,661 154,455 84,152 117,038 96,651 289,604 3,642,707 Oct. 22 321,188 979,389 2S7,550 368,465^ 150,739 181,085 630,799 155,590 85,015 117,096 95,915 290,894 3,663,725 Collateral security for Federal Reserve notes outstanding: Gold and gold certificates— Oct.l 5,900 209,607 32,025! 2,500 3,810 13,052 12,331 279,225 Oct.8 • 5,900 209,608 32,025J 2,500 3,860 13,052 12,331 279,276 Oct. 15 5,900 209,608 32,025 3,500 3,860 13,052 12,331 280,276 Oct. 22 5,900 209,608 32,025 3,500 3,860 13,052 11,831 279,776 Gold redemption fund— Oct.l 18,099 11,912 15,221 20,213 1,903 4,147 8,786 3,739 1,31-7 3,599 5,548 12,714 107,198 Oct.8 21,524 11,034 17,364 18,649 2,994 4,054 8,954 2,037 1,060 2,619 6,846 17,946 115,081 Oct. 15 19,015 9,867 15,405 18,012 3,832 2,879 8,342 3,630 1,439 3,701 6,202 16,305 108,629 Oct. 22 22,901 9,405 18,553 19,952! 2,244 4,240 8,119 4,005 1,012 2,859 5,045 14,936 113,271 Gold settlement fund—Federal Reserve Board— Oct.l 111,000 45,000 106,389 90,0001 42,500 46,000 180,144 40,031 13,200 36,360 11,734 71,612 793,970 Oct.8 106,000 15,000 106,389 90,000 39,500 46,000 178.145 42,431 13,200 38,360 9,734 63,296 748,055 Oct. 15 106,000 15,000 114,389 90,000 41,500 52,100 175,144 40,931 13,200 37,360 12,234 82,275 780,133 Oct. 22 115,000 45,000 101,389 90,000 41,500 57,000 173,145 41,531 13,200 38,360 12,734 81,334 810,193 Eligible paper- Amount required— Oct.l 188,687 707,964 163,008 225,488 102,595 99,495 435,575 105,984 55,391 74,067 63,639 200,863 2,422,756 Oct.8 192,687 737,723 165,608 229,287 105,815 100,984 439,455 106,254 56,891 74,427 66,459 207,724 2,483,314 Oct. 15 190,887 745,713 159,608 228,487 105,235 104,184 444,175 106,034 56,461 75,977 65,884 191,02412,473,669 Oct. 22 177,387 715,376 167,608 226,488 106,995 116,345 449,535 106,194 57,751 75,877 66,305 194,624 2)460,485 Excess amount held— Oct.l 25,563 231,946 9,353 22,519 10,270 24,015 76,117 14,864 16,966 34,051 11,249 21,450 498,363 Oct.8 19,683 279,443 5,887 39,726 7.720 24,096 73,950 10,232 22,095 38,326 11,568 11,100 543,826 Oct. 15 13,895 252,816 24,350 42,594 7)881 23,627 73,177 15,354 10,771 33,170 9,123 16,185| 522,943 Oct. 22 39,593 256,289 8,750 28,321 6,257 23,625 60,923 13,294 8,251 36,944 9,815 18,359 510,421 Total resources: Oct.l 737,535 2,323;,912 614,469 785,651 330,664 3991,,974 1,385,767 342,472 189,926 268.373 214,233 597,208|8,190,184 Oct.8 739,205 2,3691;,173 612,889 805,048 330,876 400,8771,389,578 338,616 195,541 276)108 215,968 593,912 8,267,791 Oct. 15 728,599 2,3531,992 638,434 810,842 333,093 410,418 %x 387,259 342,284 186,345 274,166 215,140 600,273j8,280,845 Oct.22 753, t; 356,067 619,130 794,051 331,954 437,7501,380,001 341,094 186,301 278,056 213,940 605,027 8,297,040 LIABILITIES. Federal Reserve notes received from Comptroller of the Currency—gross: Oct.l 675,600 2,279,520 651,380 675,500 371,260 382,0001,140,440 373,; 176,680 253,660 194,180 509,540 7',,683,640 Oct.8 682,300 2,288,260 651,380 677,020 374,620 383,020 1,146,200 375,340 176,680 256,720 194,180 515,900 7',721,620 Oct.15 684,300 2,296,400 660,380 684,020 376,580 385,080 1,147,160 376,420 179,680 259,220 195,160 519,200 7',763,600 Oct.22 686,400 2,298,600 660,380 378,480 395i,, 580 1,151,240 377,780 181,720 260,120 195,160 522,8007,792, 880 Less amounts returned for destruction: Oct.l 287,3141,162,037 330,882 280,094 197,1 158,183 455,295 199,836 86,680 133,364 84,448 218,97133,,594,968 Oct.8 288,889 1171,895 333,739 281,659 199,773 159,777 457,126 201,538 87,437 134,344 85,150 222, ",623,381 Oct. 15 291"""' 175,412 335,698 284,296 201,935 160,952 460,739 203,945 88,258 135,262 85,794 224,716 3,;648,405 Oct.22 293,,5121 178,211 337,550 287,355 203,522 162,540 462,961 205,570 88,685 136,104 86,950 227,026 3i, 669,986 Net amount of Federal Reserve notes received from Comptroller of Currency: Oct.l......:..........-..-. 388,2861,117,483 320,498 395,406 173,396 223,817 685,145 174,044 90,000 120,296 109,732 290,569 4,088,672 Oct.8 393,4111,116,365 317,641 395,361 174,847 223,243 689,074 173,802 89.243 122,376 109,030 293,846 4,098,239 Oct. 15 392,9021,120,988 324,682 399,724 174,645 224,128 686,421 172,475 91)422 123, 958109,366 294,484|4,115,195 Oct.22 392,8881',120,389 322,830 397,265 174,958 233,040 688,279 172,210; 93,035 124,016 108,210 295,"7"7"4 4' .122,894 Collateral received from Federal Reserve Bank: Gold— Oct.l i 134,999 266,519 121,610 142,238 44,403 52,647 188,930 47,580! 27,569 39,959 29,613 84,326 1^,180,393 Oct.8 133,424 235,642 123,753 140,674 42,494 52,554 187,099 48,328 27,312 40,979 28,911 81,2421,142,412 Oct. 15 130,915 234,475 129,794 140,037 45,332 58,479 183,486 48,421 27,691 41,061 30,767 98,5801,169,038 Oct.22 143,801 264,013 119,942 141,977 43,744 64,740 181,264 49,396 27,264 41)219 29,610 96,2701.,203,240 Eligible paper— Oct.l 214,250 939,910 172,361 248,007 112,865 123,510 511,692 120,848 72,357 108,118 74,888 222,313 2!,, 921,119 Oct.8 212,370 ,017,166 171,495 269,013 113,535 125,080 513,405 116,486 78,986 112,753 78,027 218,824 3;,; 027,140 Oct. 15 204,782 998,529 183,958 271,081 113,116 127,811 517,352 121,388 67,232 109,147 75,007 207,209 2^,996,612 Oct.22 216,980 971,665 176,358 254,809 113,252 139,970 510,458 119,488 66,002 112,821 76,120 212,983 2!;, 970) 906 Total liabilities: Oct.l 737,535 2, 323,912614,469 785,651 330,664 399,974 1.385,767 342.472 189,926 268,373 214,233 597',,208 88,,190,184 Oct.8 739,205 2,!369,173 612,889 805,048 330,876 400,8771,389,578! 338,616 195,541 276,108 215,968 593,912 8\ ,226677;,791 Oct. 15 728,599 2,;353,992 638,434 810,842 333,093 410,4181,387,259' 342,284 186,345 274,166 215,140 6001,,273 8!,, 280,845 Oct.22 753,669 2,;356,067 619,130 794,051 331,954 437,7501,380,001 341,094 186,301 278,056 213,940 605,02 8,297.040 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

NOVEMBER, 1920. FEDERAL RESERVE BULLETIN. 1241 Amounts of Federal Reserve notes received from and returned to other Federal Reserve Banks for redemption or credit during the period Jan. 1 to Sept. 30, 1920. Boston. New York. Philadelphia. Cleveland. Federal Reserve Bank. Received. Returned. Received. Returned, Received. Returned. Received. Returned. Boston $43,736,750 $47,321,300 $4,958,600 $4,638,000 $2,784,790 $1,615,000 New York $46,498,900 $44,085,250 51,095,850 43,659,100 34,535,750 14,327,000 Philadelphia.. 4,424,000 5,079,600 41,585,750 52,430,100 10,087,750 7,585,000 Cleveland 1,994,300 2, 827,100 16,762,500 34,277,250 9,765,300 10,457,500 Richmond 2,643,000 2,398,100 12,534,750 20,624,400 8,455,250 8,480,250 6,508,000 3,832,500 Atlanta 1,568,550 2,128,500 9,641,250 13,809,950 2,192,750 3,210,500 4,419,650 2,530,500 Chicago 4,009,200 4,884,800 21,317,500 38,148,550 4,605,500 5,604,000 17,988,000 13,875,500 •St. Louis 1,045,670 816,500 6,598,405 5,561,250 1,515,410 1,170,265 6,444,430 1,864,000 Minneapolis... 364,000 632,400 1,959,500 4,117,350 372,000 512,250 855,000 898,000 Kansas City... 574,750 831,000 3,803,550 4,959,650 715,150 1,021,750 1,686,050 1,383,000 Dallas 389,750 991,400 3,365,000 4,922,000 539,050 1,179,500 960,100 1,117,500 San Francisco.. 1,579,185 1,042,000 9,131,695 13,024,750 1,619,595 1,041,630 2,440,150 824,500 Total: Jan. lto Sept. 30,1920. 65,091,305 65,716,650 170,436,650 239,196,550 85,834,455 80,974,745 88,709,670 49,852,500 Jan. 1 to Sept. 30,1919. 41,667,915 68,557,100 181,666,130 201,106,650 48,355,455 72,412,550 71,949,565 50,302,900 Jan. 1 to Sept. 30, 1918. 13,815,990 20,594,000 77,239,900 76,868,150 26,282,675 40,733,160 26,126,950 12,715,200 Richmond. Atlanta. Chicago. St. Louis. Federal Reserve Bank. Received. Returned. Received. Returned. Received. Returned. Received. Returned. Boston ! $2,428,550 592,750 $2,127,400 $1,486,650 $4,921,000 $4,015,000 $819,900 $1,052,910 New York 20,549,800 267,750 13,554,050 9,582,050 38,204,200 21,154,500 5,527,550 6,591,440 Philadelphia :..'. ! 8,123,505 689,750 3,056,000 2,171,700 5,297,500 4,859,500 1,066,000 1,598,457 Cleveland ! 5,207,400 379,250 3,047,500 4,291,550 16,367,400 18,090,500 2,387,800 6,470,145 Richmond ! 9,265,750 5,918,800 5,145,000 3,208,500 1,848,000 1,691,095 Atlanta ! 6,257,950 135,250 6,558,900 4,869,000 9,342,300 7,297,215 Chicago i 3,264,000 006,250 4,872,500 6,048,750 10,981,500 26,202,990 St. Louis 1,711,765 ,777,750 7,353,460 9,591,200 26,128,190 10,993,000 Minneapolis ! 266,500 538,750 361,500 607,400 12,034,500 16,626,000 686,500 1,384,185 Kansas City 794,600 ,613,750 1,400,850 1,398,900 10,559,250 9,174,000 6,007,800 8,181,735 Dallas ; 571,750 ,240,750 3,477,550 3,964,600 2,811,900 2,858,500 3,407,100 6,424,267 San Francisco ! 1,236,900 485,000 2,164,530 869,700 10,469,910 7,563,500 2,119,760 2,103,045 Total: Jan. 1 to Sept. 30,1920 50,412,720 50,727,000 50,681,090 45,931,300 138,497,750 103,412,000 44,194,210 68,997,484 Jan. 1 to Sept. 30, 1919 55,159,445 58,439,500 44,434,365 41,062,955 109,302,345 97,795,700 37,906,795 56,811,190 Jan. 1 to Sept. 30. 1918 17,956,075 17,629,050 14,539,460 14,871,700 31,123,820 37,893,100 9,877,675 24,362,130 Minneapolis. Kansas City. Dallas. San Francisco. Total. Federal Reserve Bank. Received. Returned Received. Returned Received. Returned. Received. Returned, Received. Returned Boston $630,400 $354,500 $863,100 $570,250 $1,008,160 $396,850 $1,137,800 $1,740,650 $65,416,450 $65,783,860 New York 4,117,350 1,966,000 4,867,650 3,814,050 4,556,800 3,101,200 12,860,150 I 9,599,155 236,368,050 170,147,495 Philadelphia 498,250 377,500 996,000 764,150 1,135,250 523,950 965,000 1,701,985 77,235,005 85,781,692 Cleveland 1,152,000 859,500 1,812,000 1,732,050 1,239,250 913,800 944,500! 2,528,830 60,679,950 88,827,475 Richmond 542,000 261,500 1,647,250 670,400 2,244,250 531,800 504,750; 1,243,800 51,338,000 48,861,145 Atlanta 598,950 368,500 1,463,050 1,437,850 3,834,450 3,350,250 897,000 2,188,860 46,774,800 50,326,375 Chicago 16,714,500 12,005,000 9,277,500 10,829,750 2,865,500 2,635,400 7,985,500i 10,585,180103,881,200 135,826,170 St. Louis 1,378,185 686,500 8,312,470 6,094,800 6,300,872 3,313,650 2,116,165! 2,140,500 68,905,022 44,009,415 Minneapolis 1,722,000 2,301,750 298,000 405,950 2,759,000! 3,796,295 21,678,500 31,820,330 Kansas City 2,303,250 1,739,500 5,328,650 3,768,500 4,292,400 5,329,385 37,466,300 39,401,170 Dallas 407,700 328,850 ' 4," 035," 6005,'405," 200 3,237,550 3,109,745 23,203,050 32,542,312 San Francisco 3,743,995 2,610,500 5,379,265 4,379,900 3,038,090 2,797,050 42,923,075 36,741,575 Total: Jan.ltoSept.30,1920. 32,086,580 21,557,850 40,375,885 38,000,150 31,849,272 121,738,400 37,699,815 43,964,385 835,869,402 '830,069,014 Jan. 1 to Sept. 30,1919. 29,409,985 23,058,500 39,894/075 28,144,700 18,859,270 11,210,000 30,666,345 26,582,805 709,271,690 J735,484,550 Jan. 1 to Sept. 30,1918. 10,117,700 5,405,800 25,783,030 3,980,505 8,238,350 8,884,100 10,157,065 i 4,723,685 271,258,690 268,660,580 CONDITION OF MEMBER BANKS IN LEADING CITIES. Further increases in loans and investments, ported by corporate securities, reflecting to accompanied by commensurate increases in some extent recent corporate financing and borrowings from the Federal Reserve Banks for operations connected with the redemption of the four-week period between September 17 the Anglo-French loan. Loans secured by and October 15 are indicated by the statements Government war obligations show & continuous of condition of about 820 member banks in reduction, while other loans and investments, leading cities. A notable development during composed largely of commercial loans and disthe period is the increase shown in loans sup- counts, show the largest growth for the period. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1242 FEDERAL RESERVE BULLETIN. NOVEMBER, 1920. Government operations, comprising chiefly street loans by the fiscal agents in New York of the redemption and issuance of Treasury cer- the Governments concerned, preparatory to the tificates on October 15, the payment of the redemption on October 15 of the Anglo-French semiannual interest on the fourth Liberty bonds and the assumption of these loans by bonds, and the gradual withdrawal of balances reporting members largely in Boston and New on account of the more recent certificate issues, York City. affect primarily total Treasury certificate hold- A summary of the weekly changes in the ings and the item of Government deposits, principal asset and liability items of all reportwhile the increase in loans on corporate secur- ing member banks, also of corresponding figities reflects to a large extent the calling of ures for the first Friday in the year, follows: Principal resources and liabilities of member banks in leading cities on Jan. 2, 1920, and on Fridays from Sept. 17 to Oct. IS, 1920. [In millions of dollars.] Jan. 2. Sept. 17. Sept. 24. i Oct. 1. Oct. 8. Oct. 15. Number of banks 798 818 818 820 822 822 United States bonds 906 879 873 873 879 877 United States Victory notes * 238 191 191 190 190 191 United States certificates of indebtedness 857 416 384 326 318 362 Total United States securities owned 2,001 1,486 1,448 1,387 1,430 Loans secured by Government war obligations, including rediscounts with Federal Reserve Bank 1,289 956 950 949 937 924 Loans secured by corporate stocks and bonds 3,406 3,039 3,056 3,100 3,091 3,162 All other loans and investments, including rediscounts with Federal Reserve Bank 9,892 11,577 11,686 11,706 11,774 11,768 Total loans and investments, including rediscounts with Federal Reserve Bank 16,588 17,058 17,140 17,144 17,189 17,284 Reserve balance with Federal Reserve Bank 1,442 1,390 1,362 1,344 1,385 1,422 Cash in vault 431 370 358 351 376 381 Net demand deposits 11,609 11,392 11,161 11,230 11,212 11,473 Time deposits 2,334 2,781 2,787 2,794 2,796 2,808 Government deposits 331 315 275 247 Bills discounted and rediscounted with Federal Reserve Bank, total... 1,871 1,972 2,151 2,165 2,250 2,249 Secured by Government war obligations 1,210 937 949 914 946 928 AH other 661 1,035 1,202 1,251 1,304 1,321 As against nominal changes in their holdings ton banks. All other loans and investments, of United States bonds and Victory notes the composed largely of commercial loans and disreporting banks show considerable fluctuation counts, show a further advance of 191 millions in the amounts of Treasury certificates held, a for the four weeks under review and an addecline of about 98 millions during the first vance of 1,876 millions since January 2 of the three weeks being followed by an increase of present year. In consequence of the changes about 44 millions on October 15, the date of shown in the principal loan and investment allotment by the Government of over 124 mil- accounts, total loans and investments on Octolions of 5-month tax certificates. The total of ber 15 were 226 millions larger than on Septemcertificates held by reporting banks at the close ber 17 and 696 millions in excess of the correof the period under review, 361.7 millions, sponding January 2 total. For the New York marks, however, an increase of 29.7 millions City banks increases of 40.6 millions in other since the beginning of the year. For the mem- loans and investments and of 91.7 millions in ber banks in New York City an increase for the total loans and investments are shown. The four weeks of 5.4 millions in the holdings of ratio of combined holdings of United States United States bonds and Victory notes, as war securities and loans supported by such seagainst a reduction of 34.5 millions in Treasury curities to total loans and investments, shows a certificates, are noted. further decline from 12.7 to slightly over 12 per Loans secured by Government war obliga- cent for all reporting banks and from 16.2 to tions show a slow but steady decline and on about 15 per cent for the member banks in New October 15 totaled 924 millions, a decrease of 32 York City. millions since September 17 and of 365 mil- As the result of gradual withdrawals of funds lions since the beginning of the year. On the from depositary institutions Government deother hand total loans supported by corporate posits with the reporting banks show a continsecurities increased during the four-week uous reduction from the high level of 331.4 period by 123 millions, this being the combined millions on September 17 to 188.4 millions on increase of the item for the New York and Bos- October 15. Other demand deposits (net) Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

NOVEMBER 1920. FEDERAL RESERVE BULLETIN. 1243 fluctuated between 11,160.5 millions on Sep- ing fairly closely to the increases in the loan tember 24 and 11,472.9 on October 15, the large accommodation extended by these banks to increase on the latter date reflecting in part their own customers. The ratio of member substantial transfers of deposit credits from bank borrowings at the Federal Reserve Banks Government to individual account, deposits of to total loans and investments of reporting funds received in payment of matured home banks, which affords a rough index of the exand foreign Government obligations, also addi- tent to which the loan burden of these banks is tional credits to deposit account extended to shifted to the Reserve Banks, shows a rise durborrowers on corporate securities. Time de- ing the four weeks from 11.6 to 13 per cent. posits show a moderate but steady growth dur- For the New York City banks an even larger ing the period, the October 15 total, 2,808.3 mil- increase in this ratio, from 11.7 to 14.6 per cent lions, being 27.6 millions larger than the Sep- is seen. tember 17 total. For the New York City banks Reserve balances declined from 1,390.1 mildecreases from 199.9 to 86.9 millions in Govern- lions on September 17 to 1,343.6 millions on ment deposits and from 340.4 to 335 millions October 1. During the subsequent two weeks in time deposits, as against an increase from as a consequence of both the increase in the 4,629.2 to 4,647.7 millions in net demand de- loans and deposits of the reporting banks and posits, are shown. the larger borrowings from the Federal Re- Accommodation of reporting member banks serve Banks, these balances went up to 1,422.1 at the Federal Reserve Banks, as shown on the millions. Cash in vault reached a total of books of the latter, shows a continuous growth 381.1 millions, marking an increase of 11.4 from 1,972 millions on September 17 to 2,249 millions for the period. For the New York millions four weeks later, the weekly increases City banks increases of 14.7 millions in rein the borrowings of reporting member banks serve balances and of 2.9 millions in cash on from their Federal Reserve Banks correspond- hand are shown. Principal resource and liability items of member banks in leading cities, including member banks located in Federal Reserve Bank cities and in Federal Reserve Branch cities, as at close of business on Fridays frovi Sept. 24 to Oct. 15, 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 ia - . C la le n v d e . - m R o ic n h d - . la A n t t - a. Chicago. Lo S u t. is. M ap i o n l n is e . - K C a i n t s y a . s Dallas. F c S i r s a a c n n o - . Total. Number of reporting banks: Sept. 24 113 106 818 Oct. 1 113 108 820 Oct. 8 113 108 83 822 Oct. 15 114 108 68 822 United States bonds to secure circulation: Sept. 24 12,459 46,492 11,347 42,243 28,709 14,285 21,550 16,923 7,371 15,471 19,573 32,638 269,061 Oct. 1 12,507 46,753 11,347 42.279 28,708 14,335 21,552 16,923 7,371 15,471 19,573 32,638 269,457 Oct. 8 12,507 46,498 11,347 42.280 14,380 21,550 16,923 7,371 14,701 19,573 32,638 268,576 Oct. 15 12,608 46,798 11,347 42,273 14,380 21,550 16,923 7,371 14,701 19,573 32,648 268,980 Other United States bonds,including Liberty bonds: Sept. 24 17,785 250,477 28,919 60,180 33,610 28,077 52,083 13,463 9,605 24,710 21,113 63,782 603,804 Oct.l 18,076 249,885 28,479 60,018 33,901 28,658 53,064 13,110 9,632 23,503 21,375 63,301 603,002 Oct. 8 18,171 255,535 28,802 59,653 33,839 28,049 51,976 13,217 9,807 24,965 22,365 63,919 610,298 Oct. 15 18.081 253,139 28,932 60,682 33,675 28,163 52,407 13,361 10,005 23,391 21,849 64,061 607,746 United States Victory notes: Sept. 24 5,711 81,119 9,175 19,634 7,231 4,625 39,021 2,569 1,032 5,151 3,332 12,872 191,472 Oct.l 5,808 81,379 9,258 19,515 7,402 4,281 38,273 2,664 1,032 4,828 3,065 13,264 190,769 Oct. 8 5,863 79,666 9,039 20,025 7,372 4,103 38,607 2,572 996 5,313 3,046 13,638 190,240 Oct. 15 5,838 82,995 9,155 18,548 7,245 4,078 38,699 2,615 1,025 5,080 3,066 13,074 191,418 United States certificates of indebtedness: Sept. 24 20,363 200,637 19,286 20,264 8,417 9,127 58,366 3,880 2,060 10,421 4,836 25,463 383,420 Oct.l 19,336 156,961 17,729 18,206 7,345 8,461 54,665 3,935 1,789 8,077 4,616 24,584 325,704 Oct. 8 19,332 155,871 16,248 16,110 7,421 7,803 51,866 3,882 1,994 7,924 4,575 24,823 317,849 Oct. 15 25,328 166,951 26,701 25,552 7,764 6,944 54,810 5,175 2,103 8,554 5,842 26,029 361,753 Total United States securities owned: Sept. 24 56,318 579,025 68,727 142,321 77,967 56,114 171,020 36,835 20,068 55,753 48,854 134,755 1,447,757 Oct. 1 55,727 534,978 66,813 140,018 77,356 55,735 167,554 36,632 19,824 51,879 48,629 133,787 1,388,932 Oct. 8 55,873 537,570 65,436 138,068 77,440 54,335 163,999 36,594 20,168 52,903 49,559 135,018 1,386,963 Oct. 15 61,855 549,883 76,135 147,055 77,492 53,565" 167,466 38,074 20,504 51,726 50,330 135,812 1,429,897 Loans secured by Government war obligations, including rediscounts with Federal Reserve Bank: Sept. 24 48,716 464,358 82,685 74,791 31,195 32,387 97,457 31,079 16,015 27,461 10,735 33,445 950,324 Oct.l 48,319 465,081 79,655 73,652 31,827 33,472 97,099 32,204 16,275 27,912 10,981 32,538 949,015 Oct. 8 47,307 462,447 75,862 72,232 30,810 32,140 96,355 31,858 15,831 28,129 10,842 33,121 936,934 Oct. 15 47,400 455,985 75,350 71,455 30,528 31,090 93,678 31,672 15,538 27,648 10,610 32,768 923,722 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1244 FEDERAL RESERVE BULLETIN. NOVEMBER, 1920. Principal resource and liability items of member banks in leading cities, including member banks located in Federal Reserve: Bank cities and in Federal Reserve Branch cities, as at close of business on Fridays from, Sept. 24 to Oct. 15, 1920—Con. 1. ALL REPORTING MEMBER BANKS—Continued. [In thousands of dollars.] Ran 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. L S o t u . is. M ap i o n l n is e . - K C a i n ty sa . s Dallas. F ci r s a c n o - . Total. Loans secured by stocks and bonds, other than United States securities: Sept. 24 187,199 |l, 284,431 1215,328 323,754 108,839 62,140 446,654 127,106 I 30,941 80,406 41,521 147,623 3,055,942 Oct. 1 195,660 ,327,009 212,561 326,005 108,359 61,060 445,427 126,580 30,691 79,144 41,245 146,432 3,100,175 Oct. 8 194.536 ,318,888 211,364 326,087 108,213 61,280 447,518 126,206 30,827 82,094 37,847 146,291 3,091,151 Oct. 15 202,274 1,370,820 214,430 328,219 107,891 60,082 450,002 126,098 32,946 82,776 40,858 145,861 3,162,257 All other loans and investments, including rediscounts with Federal Reserve Bank: Sept. 24 821,893 4,149,412 594,072 965,249 405,727 429,437 ,825,458 407,023 286,803 544,020 263,804 993,325 11,686,223 Oct. 1 820,785 4,156,820 593,508 973,195 408,009 434,013 ,837,116 411,489 286,470 522,791 264,283 997,787 11,706,266 Oct. 8 815,180 4,203,976 592,735 985,504 409,019 429,190 ,831,534 418,172 297,525 524,341 263,970 1,002,410 11,773,556 Oct. 15 815,947 4,188,201 ""271 980,420 403,227 425,398 ,840,774 415,686 298,223 539,942 263,837 998,194 11,768,120 Total loans and investments, including rediscounts with Federal Reserve Bank: Sept. 24 1,114,126 6,477,226 960,812 1,506,115 623,728 580,078 2,540,589 602,043 353,827 707,640 364,914 1,309,148 17,140,246 Oct.l 1,120,491 6.483.888 952,537 1,512,870 625,551 584,280 2,547,196 606,905 353,260 681,726 365,138 1,310,544 17,144,38ft Oct. 8 1,112,896 6,522,881 945,397 1,521,891 625,482 576,945 2,539,406 612,830 |364,351 687,467 362,218 1,316,840 17,188,604 Oct. 15 1,127,476 6.564.889 964,186 1,527,149 619,138 170,135 2,551,920 611,530 |367,211 702,092 365,635 1,312,635 17,283,996 Reserve balances with Federal Reserve Bank: Sept. 24 81,511 651,105 69,247 101,074 35,274 29,909 187,113 40,965 19,394 42,788 23,401 80,019 1,361,800 Oct.l 83,072 624,985 67,609 106,554 35,507 31,917 187,342 38,791 18,476 45,626 23,762 79,910 1,343,551 Oct. 8 80,922 665,980 68,764 103,680 36,213 30,336 189,400 38,838 20,213 45,812 24,369 80,153 1,384,680 Oct. 15 90,568 681,564 73,260 101,177 37,409 29,773 194,766 38,121 21,693 43,681 27,133 82,937 1,422,082 Cash in vault: Sept. 24 24,588 114,726 17,445 32,836 16,126 13,788 65,817 9,641 i 8,911 14,843 11,429 28,233 358,383 Oct. 1 25,113 108,145 17,382 34,287 15,816 13,669 65,686 9,389 ! 8,668 14,170 11,810 27,022 351,157 Oct. 8 27,333 120,942 17,738 36,645 18,559 14,121 66,803 9,986 ! 9,287 1^821 12,101 28,134 376,470 Oct. 15 27,783 122,576 17,123 37,218 17,273 14,685 70,203 9,538 | 8,675 14,971 12,061 29,008 381,114 Net demand deposits on which reserve is computed: Sept. 24 806,492 5,010,977 i690,209 928,816 338,851 258,455 1,363,590 307,995 !186,971 412,468 224,373 631,340 11,160,537 Oct.l 825,877 5,028,351 690,432 955,790 339,514 260,866 1,373,377 307,969 !185,836 404,849 227,306 629,907 111,230,074 Oct. 8 810,213 5,022,424 692,210 949,281 343,307 257,734 1,373,884 307,465 193,943 400,875 228,649 632,245 11,212,230 Oct.15 860,706 5,154,324 693,119 955,757 344,815 260,056 1,433,086 308,610 193,456 '389,526 229,548 649,921 11,472,924 Time deposits: Sept. 24 154,465 468,562 38,895 376,942 107,741 151,318 629,214 126,016 63,996 i 97,457 55,021 517,184 j 2,786,811 Oct. 1 158,218 464,666 ! 38,767 378,793 108,359 150,961 632,789 126,308• 64,824 I 97,39359,601 513,182 2,793,861 Oct. 8 158,625 460,573 ! 39,073 377,938 107,515 149,423 635,489 128,063 68,043 | 96,77955,414 519,241 2,796,176 Oct.15 159,335 472,242 39,435 378,786 106,236 148,824 635,404 128,291 68,898 I 97,146 55,663 518,043 2,808,303 Government deposits: Sept. 24 17,441 194,512 20,159 28,426 3,556 1,790 19,597 6,857 2,831 j 5,267 1,814 13,114 | 315,364 Oct.l 15,182 173,076 17,855 20,748 3,178 1,680 17,135 6,049 i 2,430 \ 4,572 1,571 11,561 275,037 Oct. 8 13,684 156,197 16,110 18,465 2,889 1,449 15,558 5,458 2,230 j 4,1201,414 9,562 247,136 Oct.15 16,261 89,482 20,692 19,035 2,754 2,078 14,378 5,167 1,956 j 4,2192,200 10,179 188,401 Bills payable with Federal Reserve Bank: Secured by United States war obligations— Sept. 24 27,780 318,690 50,682 17,416 33,871 33,737 19,338 4,779 30,104 18,935 28,621 677,935 Oct.l 24,616 303,647 45,333 15,105 33,440 33,475 87; 667 20,069 5,207 26,748 18,767 30,698 644,772 Oct. 8 26,545 336,492 44,369 17,574 32,698 32,980 84,420 20,377 5,566 28,270 19,406 32,206 680,903 Oct. 15 15,429 333,148 49,193 23,410 32,070 32,001 82,252 20,332 ; 6,009 25,726 18,452 30,601 All other- Sept. 24 36 807 55 4,965 400 525 85 6,873 Oct.l 36 4,100 450 34 85 4,705 Oct. 8 36 1,750 483 25 210 3,445 Oct. 15 36 1,750 533 1,100 190 4,339 Bills rediscounted with Federal Reserve Bank: Secured by United States war obligations- Sept. 24 17,198 143,281 42,694 12,496 3,727 10,754 17,105 8,548 i 1,7737,485 2,466 3,803 271,330 Oct.l 17,155 143,001 41,048 11,729 3,941 11,463 17,680 8,979 | 1,8207,234 2,524 2,963 269,537 Oct. 8 16,528 141,794 38,357 11,796 3,976 10,869 18,109 9,140 I 1,4157,381 2,511 3,288 265,164 Oct. 15 15,706 138,570 38,539 11,878 4,664 9,980 16,873 8,855 I 1,5177,146 2,427 3,046 259,201 All other- Sept. 24 56,852 344,944 27,652 39,618 44,345 74,010 290,889 75,750 ! 61,22874,110 26,266 79,108 1,194,772 Oct. 1 68,314 367,996 32,553 35,525 45,950 74,471 293,371 78,002 I 60,101 76,188 29,463 84,501 1,246,435 Oct. 8 64,949 423,533 28,086 36,665 44,551 73,492 292,657 86,190 i 63,342 75,133 27,482 84,370 1,300,450 Oct. 15 60,834 436,754 34,853 39,032 41,653 73,781 289,987 84,996 63,946 86,163 28,390 76,418 1,316,807 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

NOVEMBER, 1920. FEDERAL RESERVE BULLETIN. 1245 Principal resource and liability items of member banks in leading cities, including member banlcs located in Federal Reserve Bank, cities and in Federal Reserve Branch cities, as at close of business on Fridays from Sept. 24 to Oct. 15, 1920.-—Con. 2. MEMBER BANKS IN FEDERAL RESERVE BANK CITIES. fin thousands of dollars.1, Boston. Y N o e r w k. d P el h p i h la i - a. C la le n d e . - m R o ic n h d - . la A n t t - a. Chicago. Lo S u t. is. M ap i o n l n is e . - K C a i n ty sa . s Pallas. F c S i r s a a c n n o - . Tolal. Number of reporting banks: Sept. 24 24 71 44 12 9 8 49 13 9 20 8 15 282 Oct. 1 24 71 44 12 9 8 51 13 9 20 8 15 284 Oct. 8 24 71 44 12 9 8 51 13 10 19 8 15 284 Oct. 15 24 71 44 12 9 8 51 13 10 19 8 15 284 United States bonds to secure circulation: Sept. 24 2,281 36,795 7,337 3,664 2,777 3,100 1,438 10,293 2,791 5,046 4,560 16,650 96,732 Oct. 1 2,281 37 056 7,337 3,671 2,776 3,100 1,440 10,293 2,791 5,046 4,560 16,650 97,001 Oct. 8 2,281 36,801 7,337 3,672 2,776 3,100 1,439 10,293 2,791 4,276 4,560 16,650 95,976 Oct. 15 2,281 37,101 7,337 3,671 2,776 3,100 1,439 10,293 2,791 4,276 4,560 16,650 96,275 Other United States bonds, including Liberty bonds: Sept. 24 6,217 217,471 21, 754 7,754 4,686 1,536 16,880 5,183 1,756 9,111 6,140 38,225 336,713 Oct 1 6,583 216,640 21,594 7,786 4,686 1,536 17,965 5,213 1,823 7,789 6,406 38,156 336,177 Oct. 8 6,690 222,837 21,93- 7,659 4,686 1,536 16,981 5,305 1,879 9,426 6,391 38,919 344,245 Oct 15 6,616 220,593 22,012 7,768 4,686 1,536 17,377 5,298 1,953 7,932 6,329 38,758 340,858 United States Victory notes: Sept 24 344 71,738 6,646 2,244 159 176 10,962 538 208 2,934 1,020 5,101 102,070 Oct.l 462 71,860 6,653 2,236 159 186 10,814 651 208 2,587 750 5,112 101,678 Oct 8 486 70,275 6,613 2,234 159 176 11,105 551 214 3,044 753 5,474 101,084 Oct. 15 455 73,695 6,628 2,337 159 176 11,212 539 216 2,613 754 5,405 104,189 United States certificates of indebtedness: Sept. 24 8,532 185,705 17,617 1,833 711 587 17,130 2,413 478 4,708 1,676 14,047 255,437 Oct 1 8,736 142,802 16,170 1,504 622 557 16,576 2,567 414 2,378 1,454 13,785 207,565 Oct 8 9,131 141,817 14,824 1,456 578 517 15,631 2,614 458 2,256 1,392 13,864 204,538 Oct. 15 12,737 151,238 25,009 2,265 589 507 19,230 3,653 537 2,732 1,532 15,042 235,071 Total United States securities owned: Sept 24 17,374 511,709 53,354 15,495 8,333 5,399 46,410 18,427 5,233 21,799 13,396 74,023 790,952 Oct. 1 18,062 468,358 51,754 15,197 8,243 5,379 46,795 18,724 5,236 17,800 13,170 73,703 742,421 Oct. 8 18,588 471,730 50,710 15,021 8,199 5,329 45,156 18,763 5,342 19,002 13,096 74,907 745,843 Oct 15 22,089 482.627 60,986 16,041 8,210 5,319 49,258 19,783 5,497 17,553 13,175 75,855 776,393 Loans secured by G overnment war obligations, including rediscounts with Federal Reserve Bank: Sept. 24 40,282 434,912 78,668 18, 844 8,570 6,167 65,867 18,626 9,125 11,600 2,427 15,698 710,786 Oct 1 39,892 435,712 75,643 18,346 8,646 7,200 64,629 19,701 9,086 12,064 2,709 14,857 708,485 Oct. 8 39,011 433,570 71, 851 19,029 8,565 6,649 64,204 19,581 8,956 11,980 2,660 15,171 701,227 Oct 15 39,269 427,402 71, 590 19,171 7,895 6,648 62,299 19,306 8,898 11,430 2,576 14.810 691,294 Loans secured by stocks and bonds,other than United States securities: Sept 24 . . .. 142,503 1,131,898 196,775 113,003 15,743 7,152 330,914 87,356 15,803 33,904 13,117 70,147 2,158,315 Oct.l 150,157 1,175,049 194,017 112,956 15,770 6,847 330,149 86,896 15,700 34,960 12,879 69,103 2,204,483 Oct 8 . .. 150,138 1,169,848 192,024 115,431 15,764 7,230 333,045 86,522 16,084 35,055 9,151 68,645 2,198,937 Oct 15 154 220 1 221 229195 041 112,351 15,441 6,664 334,777 87,019 18,080 35,104 12,381 69,055 2,261,362 All other loans and investments, including rediscounts with Federal Reserve Bank: Sept .24 601,172 3,670, 828521,114 309,930 79,633 76,803 ],093,749 273,106 143,513 193,438 64,372 485,122 7,512,780 Oct 1 601 4823,673,708 522.181 309,168 81,286 76,521 1,103,131 275,257 142,692 183,100 65,538 487,588 7,521,652 Oct. 8 593,304 3,720,510 521,737 313,872 81,122 75,386 1,099,647 281,091 146,884 183,624 64,746 491,276 7,573,199 Oct 15 594 0323,698,733 527,900 308,831 77,911 75,372 1,103,563 278,964 146,163 179,060 66,587 490,322 7,547,438 Total loans and investments, including rediscounts with Federal Reserve Bank: Sept. 24 801,331 5,749,347 849,911 457,272 112,279 95,521 1,536,940 397,515 173,674 260,741 93,312 644,990 11,172,833 Oct 1 809 593 5,752,827 843,595 455,667 113,945 95,947 1,544,704 400,578 172,714 247,924 94,296 645,251 11,177,041 Oct. 8 801,041 5,795,658 836,322 463,353 113,650 94,594 1,542,052 405,957 177,266 249,661 89,653 649,999 11,219,206 Oct 15 809 6105,829,991 8o5^ 517 456,394 109,457 94,003 1,549,897 405,072 178,638 243,147 94,719 650,042 11,276,487 Reserve balances with Federal Reserve Bank: Sept 24 65 090 614,380 62,836 28,203 5,991 4,871 134,809 30,975 8,804 16,529 5,645 36,75G 1,014,889 Oct 1 66,872 581,542 60,676 28,996 5,526 5,473 132,718 28,898 8,298 15,336 6,090 37,696 978,121 Oct. 8 64,619 628,922 62,671 27,693 5,990 5,618 135,959 29,058 8,408 14,974 5,722 37,755 1,027,389 Oct 15 71,433 640,552 65,393 25,675 6,675 5,282 138,640 29,123 10,265 12,087 8,916 37,993 1,052,034 Cash in vault: Sept. 24 14,817 101,785 14,077 8,452 1,646 2,549 37,715 4,857 2,811 3,788 1,918 10,386 204,801 Oct 1 16,086 96,206 13,868 8,908 1,530 2,286 37,890 4,853 2,584 3,709 1,651 9,817 199,388 Oct. 8 16,897 106,985 14,505 9,204 1,852 2,562 38,147 4,965 3,062 3,836 2,073 10,547 214,635 Oct.15 17,005 107,949 13,811 9,979 1,720 2,990 41,160 4,808 2,980 3,796 2,109 10,536 218,843 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1246 FEDERAL RESERVE BULLETIN. NOVEMBER, 1920. Principal resource and liability items of member banks in leading cities, including member banks located in Federal Reserve Bank cities and in Federal Reserve Branch cities, as at close of business on Fridays from Sept. 24 to Oct. 15, 1920—Con. MEMBER BANKS IN FEDERAL RESERVE BANK CITIES—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. is. M ap i o n l n is e . - K C a i n tv sa . s Dallas. F c S i r s a a c n n o - Total. Net demand deposits on which reserve is computed: Sept. 24 623,242 4,528,310 602,048 230,660 53,446 41,150 930,933 215,330 85,620 139,148 61,681 301,496 7,813,064 Oct.l 632,041 4,524,529 601,481 241,131 53,483 42,005 944,993 217,660 83,996 140,341 64,509 300,949 7,847,118 Oct.8 617,912 4,527,268 604,757 237,619 55,193 42,243 955,006 215,627 86,255 138,165 64,186 304,842 7,849,073 Oct. 15 660,064 4,647,698 605,457 238,920 54,216 43,209 980,594 217,809 85,437 124,465 63,456 310,312 8,031,637 Time deposits: Sept. 24 55,912 333,681 28,613 182,358 21,138 21,113 285,883 74,560 23,807 11,377 5,462 239,260 1,283,164 Oct.l 59,463 329,183 28,479 183,992 21,208 21,136 289,990 74,890 24,508 11,384 5,489 239,853 1,289,575 Oct. 8 59,705 324,035 28,712 182,152 21,400 21,342 291,167 76,277 24,924 11,195 5,449 240,353 1,286,711 Oct.15 60,349 334,984 29,019 182,670 21,562 21,222 291,731 76,287 25,948 11,279 5,449 238,937 1,299,437 Government deposits: Sept. 24 12,582 189,452 19,622 5,233 394 [ 173 9,330 5,701 861 4,586 1,646 11,713 261,293 Oct.l 11,078 168,684 17,381 4,718 389 I 159 8,156 5,033 774 3,973 1,423 10,368 232,136 Oct.8 9,997 152,238 15,684 4,222 349 ; 139 7,473 4,542 694 3,585 1,283 8,482 208,668 Oct.15 11,186 86,854 20,102 2,096 543 | 109 6,897 4,129 514 3,326 1,061 8,674 145,491 Bills payable with Federal Reserve Bank: Secured by United States war obligations- Sept. 24 23,207 287,530 47,214 1,528 .,823 1,295 26,379 10,656 367 16,480 5,069 15,664 442,212 Oct.l 20,115 274,352 41,660 2,225 i, 934 1,278 22,461 11,883 525 13,017 4,831 16,705 415,986 Oct. 8 23,558 309,990 40,283 3,658 .,030 1,225 22,208 12,006 224 13,839 5,445 18,342 456,808 Oct. 15 10,062 303,773 44,617 2, £58 i,587 1,225 23,223 11,794 527 12,351 4,481 17,329 438,527 All other- Sept.24 4,965 500 5,465 Oct.l 4,100 4,109 Oct. 8 1,750 1,750 Oct. 15 1,750 800 2,550 Bills rediscounted with Federal Reserve Bank: Secured by United States war obligations- Sept. 24 16,513 139,135 42,215 2,523 1,660 10,260 4,670 1,278 4,232 5S1 2,454 225,521 Oct.l 16,245 138,849 40,649 2,218 2,290 10,425 5,005 1,212 4,098 454 1,538 222,983 Oct.8 15,648 137,957 37,878 2,202 2,100 9,854 4,774 1,067 4,090 503 1,545 217,618 Oct. 15 15,051 134,710 38,160 2,677 1,803 9,139 4,554 1,081 3,790 462 1,395 212,822 All other- Sept.24 56,477 322,362 25,814 30,314 13,264 15,952 215,191 55,162 43,497 32,623 8,608 44,956 864,220 Oct.l 67,673 338,107 31,037 24,210 13,187 16,660 212,824 55,927 44,297 34,883 9,389 49,308 897,502 Oct.8 64,498 398,256 26,770 27,977 12,731 15,248 209,943 64,813 47,585 34,489 7,831 47,246 957,387 Oct.15 60,428 409,808 33,371 31,502 9,843 14;295 210,068 61,364 48,856 34,256 9,483 41,217 964,491 3. MEMBER BANKS IN FEDERAL RESERVE BRANCH CITIES. [In thousands of dollars.] di Y N st o r e i r w c k t.1 di C s l l a t e r n i v d c e t - . ? di m R st i o r c i n c h d t - .* d A is t t l r a i n c t t a .4 d C i h s i t c ri a c g t o s S d t i . s t L ri o c u t. is Total. Number of reporting banks: Sept. 24 10 40 • 19 24 12 | Oct. 1 10 40 i 19 24 12 | Oct. 8 10 40 I 19 23 12 i Oct. 15 11 40 ! 18 23 12 | United States bonds to secure circulation: Sept. 24 1,599 25,164 ! 5,608 6,930 1,905 5,280 72,177 Oct. 1 1,599 25,193 I 5,608 6,980 1,905 5,280 72,256 Oct. 8 1,599 25.193 I 5,608 6,980 1,905 5,280 72,256 Oct. 15 1,599 25,187 I 5,608 6,980 1,905 j 5,280 72,250 Other United States bonds, including Liberty bonds: i Sept. 24 11,275 40,916 ! 9,368 22,118 17,509 j 7,778 147,328 Oct. 1 11,253 40,761 I 9,361 22,683 17,532 7,388 146,982 Oct. 8 10,725 40,604 ! 9,276 22,118 17,530 7,382 145,338 Oct. 15 10,627 41,590 I 9,055 22,172 17,582 7,536 146,492 United States Victory notes: I Sept. 24 1,951 14,215 2,852 3,225 18,759 j 1,926 1,063 j 1,196 I 7,315 52,502 Oct. 1 2,235 14.194 2,840 2,877 18,249 i 1,910 1,087 I 1,196 ; 7,695 52,283 Oct. 8 2,118 14,675 2,837 2,705 18,302 ! 1,908 1,130 S 1,180 i 7,707 52,562 Oct. 15 2,030 13,099 2,703 2,682 18,295 ! 1,963 1,092 : 1,196 i 7,212 50,272 United States certificates of indebtedness: S O e c p t. t .2 1 4 7 7 , 3 3 9 1 1 3 6 1 1 4 2, , 5 2 7 8 7 0 6,973 3 2 0 8 , , 6 7 5 0 4 7 i j 1 1 , ,3 2 3 3 7 8 I 3 3 , , 8 77 0 7 0 | i 1 1 , , 4 4 7 7 9 9 9,588 7 7 7 2 , , 6 5 5 1 4 2 Oct. 8 7,277 10,454 I 840 ! 6,365 27,413 1,137 3,770 1 1,480 9,758 68,494' Oct. 15 8,622 18,436 j 1,315 j 6,165 26,651 1,391 3,776 ) 2,540 9,790 78,686 1 Buffalo. e Louisville, Memphis, and Little Rock. 2 Pittsburgh and Cincinnati. i Omaha, Denver, and Oklahoma City. 3 Baltimore. s El Paso and Houston. 4 New Orleans, Birmingham, Jacksonville, and Nashville. 9 Spokane, Portland, Seattle, Salt Lake City, and Los Angelas 5 Detroit. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

NOVEMBER, 1920. FEDERAL RESERVE BULLETIN. 1247 Principal resource and liability items of member banks in leading cities, including member banks located in Federal Reserve Bank cities and in Federal Reserve Branch cities, as at close of business on Fridays from Sept. 24 to Oct. 15,1920—Con. 3. MEMBER BANKS IN FEDERAL RESERVE BRANCH CITIES—Continued. (In thousands of dollars.] di Y N st o e r r w i k ct. d C i l s l a t e n r v i d e c - t. d m i R s i o t c r n i h c d - t. d A i t s l t a r n ic t t a . d C i h s i t c r a ic g t o . S d t i . s L tr o ic u t i . s d K i C s a t i n r t i s y c a t s . d D is a tr ll i a c s t. S d a i n C s t i F s r c i r c o a t n . Total. Total United States securities owned: Sept. 24 22,741 94.575 18,729 39,862 68,827 16,321 19,326 17,030 52,250 349,661 Oct. 1 22,400 92,725 18,669 39,513 66,393 15,816 19,388 17,027 52,102 344,033 Oct. 8 21,719 90,926 18,561 38,168 65,150 15,707 19,263 17,007 52,149 338,650 Oct. 15 22,878 98,312 18,681 37,999 64,433 16,170 19,142 18,095 51,990 347,700 Loans secured by Government war obligations, including rediscounts with Federal Reserve Bank: Sept. 24 11,234 44,408 8,982 20,230 15,342 11,108 10,696 2,913 16,542 141,455 Oct. 1 11,430 43,357 9,131 20,076 16,602 11,143 10,679 2,843 16,504 141,765 Oct. 8 11,368 41,959 8,677 19,467 16,076 10,903 10,622 2,809 16,801 138,682 Oct. 15 11,253 41,333 9,296 18,704 15,454 11,049 10,574 2,896 16,817 137,376 Loans secured by stocks and bonds, other than United States securities: Sept. 24 52,912 150,750 33,504 41,643 59,325 36,817 27,657 16,302 68,800 487,710 Oct.l 53,240 153,529 33,083 40,810 59,452 36,746 25,237 16,138 68,759 486,994 Oct. 8 53,092 152,674 33,002 40,450 58,957 36,732 28,513 16,127 488,477 Oct. 15 53,267 154,683 32,074 40,030 59,533 36,139 28,782 16,055 68,556 489,119 A11 other loans and investments, including rediscounts with Federal Reserve Bank: Sept. 24 187,090 480,424 123,630 265,593 355,368 118,358 201,200 85,402 473,675 2,290,740 Oct. 1 188,030 488,306 124,104 271,068 354,305 119,883 201,726 83,765 476,007 2,307,194 Oct. 8 189,729 492,956 123,493 266,598 357,118 120,606 199,461 84,678 477,154 2,311,793 Oct. 15 192,653 495,995 121,029 261,782 356,540 120,360 199,336 83,537 473,752 2,304,984 Total loans and investments, including rediscounts with Federal Reserve Bank: Sept. 24 273,977 770,157 184,845 367,328 182,604 258,879 121,647 611,267 3,269,566 Oct. 1 275,100 777,917 184,987 371,467 496,752 183,588 257,030 119,773 613,372 3,279,986 Oct. 8 275,908 778,515 183,733 364,683 497,301 183,948 257,859 120,621 615,034 3,277,602 Oct. 15 280,051 790,323 181,080 358,515 495,960 183,718 257,834 120,583 611,115 3,279,179 Reserve balances with Federal Reserve Bank: Sept. 24 13,196 55,194 12,852 19,146 26,956 9,003 15,541 39,497 200,023 Oct.l 16,481 58,731 12,813 19,935 27,748 8,955 17,984 38,695 209,171 Oct. 8 11,743 57,200 13,045 17,897 26,930 18,141 8,753 39,261 201,867 Oct. 15 16,073 57,260 13,168 18,650 30,565 17,353 8,640 41,319 211,116 Cash in vault: Sept. 24 2,378 14,605 5,258 7,312 12,343 3,966 6,181 3,223 15,973 71,239 Oct.l 2,408 15,098 5,277 7,725 12,166 3,633 6,097 3,337 15,302 71,043 Oct. 8 2,778 15,650 6,037 7,443 12,640 4,130 6,370 3,425 15,778 74,251 Oct. 15 3,627 16,198 5,926 7,896 13,139 3,829 6,299 3,481 16,600 76,995 Net demand deposits on which reserve is computed: Sept. 24 152,841 519,248 112,090 165,623 197,769 81,407 155,736 68,970 297,933 1,751,617 Oct.l 168,410 530,774 114,911 167,542 193,743 79,255 147,353 68,648 297,524 1,768,160 Oct. 8 169,782 530,308 114,594 162,812 183,090 81,242 145,886 70,313 296,152 1,754,179 Oct. 15 171,782 532,345 111,836 164,834 217,183 80,109 148,442 69,313 307,825 1,8 Time deposits: Sept. 24 65,516 117,008 20,607 90,185 225,611 42,221 59,033 22,513 263,491 906,185 Oct. 1 65,481 117,180 20,707 89,897 225,287 42,127 58,927 22,570 259,607 901,783 Oct. 8 66,198 117,489 20,614 88,490 226,243 42,315 58,986 22,649 264,873 907,857 Oct. 15 66,708 117,384 19,116 88,249 225,472 42,496 58,853 22,950 265,190 906,418 Government deposits: Sept. 24 2,896 21,611 1,850 1,291 6,134 1,131 39 130 1,299 36,381 Oct.l 2,519 14,618 1,648 1,233 5,346 993 30 115 1,129 27,631 Oct. 8 2,273 12,983 1,514 1,054 4,804 896 27 101 1,042 24,694 Oct. 15 1,606 16,201 1,440 1,693 4,516 1,026 531 1,123 580 28,716 Bills payable with Federal Reserve Bank: Secured by United States war obligations- Sept. 24 , 14,910 13,701 10,141 27,200 42,951 8,182 9,880 7,374 11,409 145,748 Oct.l 14,448 10,409 9,784 26,943 40,048 7,784 9,928 7,124 12,446 138,914 Oct. 8 13,190 11,684 9,812 26,665 38,019 7,969 10,851 7,534 12,296 138,020 Oct. 15 15,572 18,745 8,918 26,172 36,019 8,211 9,932 7,294 11,705 142,568 All other— Sept. 24 55 25 85 165 Oct. 1 25 85 110 Oct. 8 25 210 235 Oct. 15 300 190 1,179 Bills rediscounted with Federal Reserve Bank: Secured by United States war obligations- Sept. 24 2,534 9,395 1,793 7,502 4,114 3,820 2,134 1,212 33,092 Oct.l 2,618 8,418 1,834 7,358 4,498 3,902 2,026 637 1,258 32,549 Oct. 8 2,434 8,429 1,887 7,068 5,329 4,294 1,980 603 1,578 33,602 Oct. 15 2,511 8,142 2,607 6,706 4,880 4,281 1,808 781 1,550 All other- Sept. 24 6,970 4,125 14,006 48,225 15,341 20,000 27,654 8,812 30,034 175,167 Oct.l 12,262 6,420 13,841 47,636 19,066 21,013 26,848 9,923 30,625 187,634 Oct. 8 7,951 4,614 14,075 47,690 22,699 20,098 25,600 9,751 32,615 185,093 Oct. 15 11,197 4,229 13,832 48,599 19,037 22,443 26,030 9,435 30,724 185,5 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1248 FEDERAL RESERVE BULLETIN. NOVEMBER, 1920. IMPORTS AND EXPORTS OF GOLD AND SILVER. Gold imports into and exports from the United States, distributed by countries. Imports. Exports. S D 1 e e 0 n 1 u p 9 d d r t 2 i . i a n 0 n 2 y g . g 0 s , S D 1 e e 0 n 1 u p 9 d d r t 2 i . i a n 0 n 3 y g . g 0 s , t D m o e f m u o S r n b i e n t e p h r g - . O 1 D e 0 n 1 c u 9 d t d r . 2 i i a n 0 n 1 y g . g 0 s , J O a F 1 c n 9 r t . 2 o . 1 m 0 1 . 0 to , J O a F 1 n c r 9 . t o . 1 1 m 9 1 . 0 to , S D 1 e e 0 n 1 u p 9 d d r t 2 i . i a n 0 n 2 y g . g 0 s , S D 1 e e 0 n 1 u p 9 d d r t 2 i i . a n 0 n 3 y g . g 0 s , t D m o e f m u o S r n b i e n e t p h r g - . O D 1 e 0 n 1 c u 9 d t d r . 2 i i a n 0 n 1 y g . g 0 s , J O a F 1 c n r 9 t . o . 2 1 m 1 0 . 0 to , J O a F 1 n c r 9 . t o . 1 1 m 9 1 . 0 to , Belgium Denmark $1,224 $1,224 $337,130 $422,242 $31,900 France 21,150"*$68,*340 199,294 199,294 1,002,666 Germany 4,000,00010,843,42514,843,425 16,587 644 3,583,644 $10,000 Greece Iceland 8,700 128,700 95,000 912 T N tf e l t lv herlands 40,107 241,263 277,514 Norway $1,158 1 163 121 15,000 Portugal 3,324 Russia in Europe. 25,364 Spain 339,636 904,506 1,244,142 24,489 1,268,631 Sweden 53,262 62,341 132,916 132,916 27,920,000 Switzerland 790 790 1 039 661 United Kingdom: 4,937 2,604 England Scotland 5,928,897 5,879,61116,402,24439,352,924 136,329,002 1,045,708 13,235 2,082,824 45 Total Europe 10,344,16917,759,01332,832,73539,378,571 156,221,254 1,562,950 268,014 34,914,209 British Honduras. Canada 20 10,000 Costa Rica 625,220 486,363 1,465,388 16,593 31,895,53333,444,937 $281,052 $150,350 $602,082 $293,119 4,583,963 4,257,712 Guatemala 13,932 59,452 41,721 531,333 524,344 Honduras 14,872 6,000 N S P a a ic l n v a a a r m a d g o a u r a 1 3 8 3 2 0 , , , 2 8 0 4 0 0 1 2 0 0 1 0 7 1 8 7 , , 9 4 2 8 9 0 4 9 7 5 1 5 1 2 3 9 1 0 , , , , 4 5 8 7 1 0 7 4 9 7 3 5 3 5 5 0 3 8 , , , 9 1 8 1 5 4 0 0 5 1,0 2 9 2 1 0 3 1 0 5 2 5 , , , , 3 7 3 9 3 6 4 3 5 7 4 5 1,1 6 2 2 3 2 3 5 5 6 , , , , 4 8 9 0 0 1 2 7 1 5 8 5 2 1 6 9 , , 6 0 6 0 6 0 1,9 3 3 2 1 9 3 1 0 0 , , , , 0 3 0 0 2 0 0 0 0 0 0 0 Mexico 228,367"*263,527 562,530"""*96,'399 3,709,583 3,639,548 213,936 274,734 697,062 276,949 17,208,167 7,035,387 NCuewbafoundland 282 9,082 14,762 5,08 6 5 1 50,000 130,000 50,000 475,000 British West In- Vi d r i g e i s n Islands of 18,000 48,697 66,697 7,430 184,546 18,838 7,940 Do U m n i i n te ic d a S n tat R es e . - .. 525 10,000 public 39,000 10,000 Dutch West Indies 157,800 160,951 331,881 5,200 Haiti 13 13 13 Total North America.. 1,088,031 1,007,291 3,019,657 305,048 39,046,92439,635,757 544,988 425,084 1,429,144 620,068 22,355,130 13,675,359 Argentina 1,585,866 1,586,373 1,663,104 97,274 89,995,000 32,960,000 Bolivia 6,878 1,069 2,500,000 Brazil 24,585 26,200 280,000 425,000 Chile 25,345 40 27,173 5,770 368,472 217,757 400,000 100,000 Colombia 192,000 720,922 1,129,476 189,822 4,233,631 538,077 700,000 4,803,620 Ecuador 48,032 90,332 32,929 523,893 379,911 50,000 206,000 British Guiana ... 3,291 13,475 26,108 681 111,201 79,694 5,005 Dutch Guiana 5,558 5,558 7,945 19,743 6,300 19,795 Peru 28,605 48,603 77,431 2,388 706,209 654,312 250,003 3,653,376 2,893,369 Uruguay 12,850,000 7,405,000 Venezuela 9,850 27,752 1,523 365,638 185,535 184,000 11,232,220 Total South America.. 1,835,107 846,480 2,970,203 233,113 8,011,556 2,199,572 250,003 50,000 108,274,676 62,344,009 China 1,260 3,500,0001,500,000 5,000,000 25,286,750 29,163,121 Chosen (Korea)... 1 714 British India 6,503,741 8,454,286 Straits Settlements 6,683,454 250,000 Dutch East Indies. 83,928 2,672,994 2,951,001 12,065,105 4,371,000 French East Indies 2,290,000 Hongkong 30,191,91016,666,666l,083,i05 238,750 1,581,130 117,550 28,642,202 27,824,801 Japan 1,957,5301,800,000 8,968,8134,640,000 52,351,025 58,078,715 Russia in Asia 23,000 Total Asia.. 83,928 32,866,16412,952,7156,540,6353,538,75015,549,943 4,757,550 133,822,277128,164,923 New Zealand 90,471 151,019 40,897 1,587,908 683,123 Philippinelslands. 52,466 52,466 700,212 419,942 2,500 British South Africa 8 150 British West Africa 39,446 Portuguese Africa. 280,358 499,324 Total, all countries. 13,267,30719,755,72139,110,00839,957,6291238,714,37657,961,5337,085,6233,963,83417,229,0905,427,6182264,759,543239,101,000 Excess imports or exports 6,181,68415,791,88721,880,91834,629,114 25,946,064181,139,467 fixcess of gold imports over exports since August 1,1914, $753,710,000. Excess of gold exports over imports since June 10,1919, $347,309,000. 1 Includes: Ore and base bullion, $13,793,000; U. S. Mint or Assay Office bars, $3,846,000; other bullion, refined, $156,181,000; U. S. coin, $14,775,000; foreign coin, $50,120,000. 2 Includes: Domestic exports—ore and base bullion, $11,000; U. S. Mint or Assay Office bars, $24,849,000; other bullion, refined, $1,034,000; CDin, $237,820,000. Foreign exports—bullion, refined, $498,000; coin, $548,000. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

NOVEMBER, 1920. FEDEKAL RESERVE BULLETIN. 1249 Silver imports into and exports from the United States, distributed by countries. Imports. Exports. S D 1 e e 0 n 1 u p 9 d d r t 2 i . i 0 a n n 2 . y g g 0 s , S D 1 e e 0 n 1 u p 9 d d r t 2 i . i 0 a n n 3 . y g g 0 s , t D m o e f m u o S r n b i e n t e p h r g - . O D 1 e 0 n 1 c u 9 d t d r 2 . i i 0 a n n 1 . y g g 0 s , J O a F 1 n c 9 r t . 2 o . 0 1 m 1 . t 0 o , J O a F 1 n c 9 r . t 1 o . 9 1 m 1 . 0 to , 2 D 1 e 0 S 0 n u , d e 1 d r p 9 i i a n n 2 t y . g g 0 s .3 D 1 e 0 S 0 n , u 1 e d d r 9 p i i a n 2 n t y . 0 g g s . t D m o e f m u o S r n b i e n e t p h r g - . O 1 D e 0 n 1 c u 9 d t d r 2 . i i 0 a n n 1 . y g g 0 s , J O a F 1 n c 9 t r . . 2 o 0 1 m 1 . 0 to , J O a F 1 n c 9 r . t 1 o . 9 1 m 1 . 0 to , Belgium $8,161 $8,161 $8,161 $1,797 Denmark $587,897 Finland 17,438 2,508 $20,087 22,595 $750 106,640 17,176 $32,920 6,588,197 Italy 24,026 Netherlands 24,041 24,041 54 861 1,092,497 Norway 14,453 1,180,494 Portugal 7,978 1,950 Spain 67,848 67,848 228 Sweden 24,480 24,480 31 395 54,960 111,430 Switzerland 172,203 United Kingdom— England 13,144 1,097 802,158 37,824 $71,141 $71,141 4,591,383 15,226,982 Total Europe . 34,710 44,567 160,269 1,847 1,117,520 56,797 71,141 71,141 4,679,263 24,979,316 British Honduras 63,367 255,637 Canada .... 78,115 215,129 571,071 44,696 3,212,420 5,808,828 44,188 $63,427 192,211 $46,388 6,358,050 4,076,521 Arista Rica 1,600 5,188 3,347 60,253 152,368 Guatemala 2,800 2,800 24,534 4,500 5,400 1*083 1,083""296*898 2,045,492"2,*i34,"i64 '"i'5',000 i5,"666 391,505 121,550 22,831 51,820 18,226 614,372 691,043 3,000 Panama 14 1,674 93,367 2,326 139,685 89,273 542,000 204,250 37 251 3,685,083 329,896 1,500 Mexico ..... 1,514,569 1,738,622 4,209,' 069 1,142,269 45,936,85447,263,983 36,463 91,827 142,096 18,269 2,858,181 1,016,745 NP wf ouiid land. 11 British West Indies. 7,017 6,225 18,080 10,328 Cuba 3,965 3,965 66,515 59,374 171,869 820 194,758 1,247,904 161 Virgin Islands of United States 1,105 25,000 Dominican Republic 36,000 120,800 30,000 261,500 150,000 Dutch West Indies. 417 417 1,867 300 French West Indies. 20 Haiti J 9,000 Total North America— 1,595,498 1,985,321 5,012,031 1,507,762 55,978,27956,792,147 267,520 156,074 574,065 64,657 11,718,720 5,586,455 Argentina 2,667 4,577 28,063 60,577 12,138 2,230 Bolivia 850 60,511 10,080 1,006,594 108,487 Brazil 293 2,155 2,333 *52 Chile 105,305 227,611 420,966 167,542 2,774,074 1,475,373 Colombia 9,705 42,601 52,864 363 644,601 157,979 2,000 5,397 10,637 5,149 62,812 13,670 Tiritisti Guiana 42 33! 2,493 TJntp'h O-niflTift 6,390 14 1,402 5,063 Peru 258,661 448,826 740,752 21,422 9,807,870 6,662,820 VpnP7iipla 28 28 44 144 577 10,000 50,000 Total South America 377,188 724,463 1,290,335 204,600 14,330,883 8,481,685 25,873 62,638 China 1,289,974 1,910,014 255,245 4,558,1681,269,055 57,685,987 31,632,561 Chosen (Korea) 3,328 British India 223,211109,180,718 Dutch East Indies 37,124 2,327,337 1,260,440 French East Indies. "4*658*373 Hongkong 1,650 315,654 300,501 926,487 111,932 20,126,082 5,278,750 447,573 447,573 1,602,512 3,946,453 970 52,759 Turkey in Asia 38,511 Total Asia 37,124 3,657,472 1,263,7682,673,241 555,746 5,932,2281,380,987 83,697,135 50,091,241 NPW Zealand 97 97 11,714 586 PhiliDoine Islands 1,172 1,172 15,852 8,698 British South Africa 6,097 76,822 British West Africa. 7,480 Portuffiipsp Africa 93,321 52,252 Total, all countries 2,007,396 2,755,620 6,501,028 1,714,209175,211,13866,732,755 3,011,902 711,820 6,577,4341,445,6442100,128,471 80,719,650 Excess imports or exDorts 2,043,800 268,565 1,004,506 76,406 24,917,333113,986,896 Excess of silver exports over imports since Aug. 1,1914, $454,289,000. 1 Includes: Ore and base bullion, $59,366,000; U. S. Mint or assay office bars, $3,000; other bullion, refined, $6,467,000; United States coin, $1,755,000; foreign coin, $7,620,000. 2 Includes: Domestic exports, ore and base bullion, $737,000; U. S. Mint or assay office bars, $4,346,000; other bullion, refined, $56,044,000; coin, $14,268,000. Foreign exports—ore and base bullion, $1,000; bullion, refined, $20,608,000; coin, $4,124,000. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1250 FEDERAL, RESERVE BULLETIN. NOVEMBEB, 1920. General stock of money in the United States, money held by the Treasury and the Federal Reserve System, and all other money in the United States, Oct. 1, 1920, Amount per Held in the Held outside capita outside General stock. U G a T n s o r s i e t v e e a t e d s s r u n o S r m f y t a t e a h t n e s e t s . F H ed B e e l a d r a n a g b k l e y s R n a t o e s n s r . e d f r o v r e F U T ed r n e e S i a r t y e a s s d l u t r R e S y m e t a a s . e n te r d v s e s U T e F r n r e e v i a d t e e s e d u S ra r y y S l s t R t a a e n e t m e d - s . Gold coin (including bullion in Treasury). $2,704,672,504 i$410,961,468 1,271,546,942 $426,089,165 Gold certificates 361.776,020 234,298,909 Standard silver dollars 269, S57,494 9," 058," 492' 3 64'. 395,445 71,636,354 Silver certificates 39,815,641 83,309,424 Subsidiary silver 262,621,624 4,105,920 258,515,704 Treasury notes of 1890 1,642,138 United States notes 316,681,016 9,292,769 * 57,764,836 279,623.411 Federal Reserve notes 3,593,909,335 20,61S, 824 294,906,515 3,278,383,996 Federal Reserve Bank notes 232,113,800 2,384,940 17,718,464 212,010,396 National-bank notes 726,477,082 16,042,510 2,576,850 707.857,692 Total: Oct. 1,1920 8,136,332,855 472,464,953 2,110,500,713 5,553,367,189 $51.70 Sept. 1,1920 7,997,080,820 485,884,277 2,031,514,938 5,479,681,605 51.06 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 Jan. 1,1920 7,961,320,139 604,888,833 2,044,422,303 5,312!009,003 49.81 July 1,1919 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 July 1,1918 6.742;225,784 356,124,750 2,018,361,825 4,367j739,209 41.31 Jan. 1,1918 6,256,19«,271 277,0-43,358 1.723,570,291 4,255,584,622 40.53 July 1,1917 5,480,009,884 253,671,614 1, 280,880,714 3,945,457,556 37.88 i Includes reserve funds held against issues of United States notes and Treasury notes of 1R90 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. ^ Exclusive of amounts held vyitb United States Treasurer in gold redemption fund against Federal Reserve notes, and of gold held with foreign agencies but inclusive of balances in gold settlement fund standing to the credit of the Federal Reserve Banks and agents 8 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 Nov. 1, 1920. Paper maturing within 90 days. Bankers' Agricultural Secured by- acceptances and live-stock Federal Reserve Bank. maturing paper maturing Trade within after 90 but Treasury Liberty bonds acceptance Allother. 3 months. within 180 days. certificates of and Victory indebtedness. notes. Boston New York Philadelphia.. Cleveland f Richmond 6 Atlanta 5} Chicago 6 St. Louis 5i Minneapolis.. 6 Kansas City.. Dallas 6 San Francisco 1 Discount rate C9rresponds 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 Cleveland, Richmond, Chicago, and San Francisco. 2 5^ per cent on paper secured by 5£ per cent certificates and 5 per cent on paper secured by 4f and 5 per cent certificates. NOTE.—Rates shown for 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

NOVEMBER, 1920. FEDERAL RESERVE BULLETIN. 1251 EARNINGS AND DIVIDENDS OF STATE BANK AND TRUST COMPANY MEMBERS. Abstract of reports of earnings and dividends of State bank and trust company members of the Federal Reserve System for the first six months of 1920, arranged by Federal Reserve districts. [In thousands of dollars.] Dis- Dis- Dis- Dis- Dis- Dis- Dis- Dis- Dis- Dis- Dis- Dis- Total trict trict 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). Capital stock, paid in 32,400 167,792 23,423 39,841 13,200 24,615 94,784 26,885 9,147 6,555 11,691 43,295 493,628 Surplus 36,550 185,832 47,674 68,561 9,159 15,312 80,310 20,756 2,965 2,978 4,739 19,733 494,569 Total capital and surplus 68,950 353,624 71,097 108,402 22,359 39,927 175,094 47,641 12,112 9,533 16,430 63,028 988,197 Gross earnings: Interest and discount 17,732 87,357 9,499 19,125 4,190 10,455 45,387 11,325 3,280 3,325 4,091 19,413 235,179 Exchange and collection charges 88 696 72 214 59 823 871 456 73 50 126 471 3,999 C ommissions 330 2,656 164 234 59 226 993 401 64 53 10 253 5,443 Other earnings 1,853 18,258 2,254 5,139 617 1,213 4,858 1,195 149 390 149 1,837 37,912 Total gross earnings 20,003 108,967 11,989 24,712 4,925 12,717 52,109 13,377 3,566 3,818 4,376 21,974 282,533 Expenses: Salaries and wages 3,050 15,479 1,712 3,734 660 1,903 8,121 2,070 705 720 879 3,973 43,006 Interest and discount on borrowed money 849 6,526 962 936 560 1,655 3,157 1,685 272 356 368 942 18,268 Interest on deposits 6,696 32,703 2,667 8,393 1,287 2,693 15,844 3,168 1,388 1,006 521 8,216 84,582 Taxes 1,209 5,356 557 1,017 276 715 3,438 506 225 144 216 934 14,593 Other expenses 2,011 10,637 1,025 3,403 526 1,619 5,315 1,623 468 631 576 2,245 30,079 Total expenses 13,815 70,701 6,923 17,483 3,309 8,585 35,875 9,052 3,058 2,857 2,560 16,310 190,528 Net earnings since last report 6,188 38,266 5,066 7,229 1,616 4,132 16,234 4,325 508 961 1,816 5,664 92,005 Recoveries on charged-off assets 91 965 24 1,091 25 142 1,239 111 19 73 122 425 4,327 Total net earnings and recoveries 6,279 39,231 5,090 8,320 1,641 4,274 17,473 4,436 527 1,034 1,938 6,089 96,332 Losses charged off: On loans and discounts 222 951 48 88 35 184 1,185 62 16 119 147 590 3,647 On bonds, securities, etc 243 7,184 1,882 498 200 419 1,760 243 29 15 4 523 13,000 Other losses 71 827 32 343 12 185 425 109 8 25 36 535 2,608 Total losses charged off 536 8,962 1,962 929 247 788 3,370 414 53 159 187 1,648 19,255 Net addition to profits 5,743 30,269 3,128 7,391 1,394 3,486 14,103 4,022 474 875 1,751 4,441 77,077 Dividends declared 2,191 14,345 2,226 3,266 621 1,402 5,977 1,816 362 481 417 2,616 35,7 0 Ratio of dividends declared to capital stock (annual basis), per cent.. 13.5 17.1 19.0 16.4 9.4 11.4 12.6 13.5 7.9 14.7 7.1 12.1 14 5 Ratio of dividends declared to capital stock and surplus (annual basis), per cent 6.4 8.1 6.3 6.0 5.6 7.0 6.8 7.6 6.0 10.1 5.1 8.3 7.2 Ratio of net profits to capital and surplus (annual basis), per cent.. 16.7 17.1 8.8 13.6 12.5 17.5 16.1 16.9 7.8 18.4 21.3 14.1 15.6 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

INDEX. Page. Page. Acceptances: Foreign trade, index of. 1197 Banks granted authority to accept up to 100 per cent of capital Foreign trade situation, discussion of 1127 and surplus 1175 Gold bill (McFadden), report of committee on 1147 Dollar exchange, countries in which banks may accept drafts Gold imports and exports 1132,1248 to furnish 1175 Governors of Federal Reserve Banks, meeting of 1123 Purchased during September 1231 Herson, J. F., appointed chief of Division of Examination 1134 Purchased during three months ending September 1231 Hoxton, W. W., appointed secretary of Board 1134 Agricultural implement industry, terms of sale in 1149 Imports and exports: American Bankers Association, address of Secretary of Treasury Cuban 1164 before 1123,1125 Gold 1132,1248 Anglo-French loan * 1129 Silver 1133,1249 Banking situation, discussion of 1133 Index numbers: Brussels financial conference 1129 Foreign trade 1197 Business and financial conditions, October 1135-1142 Physical volume of trade 1216-1224 Condition of wholesale trade 1143 Retail trade 1195 Production of knit goods 1145 Wholesale prices abroad 1198 Production and shipments of finished cotton fabrics 1145 Wholesale prices in the United States 1212 Chapman, W. T., resignation of, as secretary of Board 1134 Intere? rates prevailing in principal centers 1215 Charters issued to national banks 1175 Invest ent trust as a channel for investment abroad 1168-1173 Charts: Knit gvX)ds production 1145 Exchange rates in belligerent, neutral, and silver-standard McFadden gold bill, report of committee on 1147 countries 1159,1160 Maturities: Wholesale prices in the United States 1212 Acceptances purchased 1231,1239 Chemical industry, terms of gale in 1157 Bills discounted and bought 1231,1239 Clearing and collection: Certificates of indebtedness purchased 1239 Number of banks on par list 1234 Member banks: Operations of system during October 1234 Condition statement 1241-1247 Clearing-house bank debits, October .... 1225-1227 Earnings and dividends of State bank members 1251 Commercial failures reported 1175 Number discounting during September 1229 Condition statements: Number in each district 1229 Cuban banks 1166-1168 State banks admitted to membership 1174 Federal Reserve Banks 1235-1239 Money, stock of, in the United States 1250 Member banks in leading cities 1241-1247 National banks: Cotton fabrics, production and shipments 1145 Charters issued to 1175 Cotton factor paper, eligibility of 1176 Fiduciary powers granted to 1174 Countries in which banks may accept drafts to furnish dollar National City Bank of New York, foreign branch of, opened in exchange 1175 London 1174 Crop moving, credit for, statement of Board regarding 1124 Paddock, W. W., resignation of, as chief of Division of Examina- Crop report for November 1175 tion.... I....? . 1134 Cuba, economical and financial conditions in 1162-1168 Physical volume of trade , 1216-1224 Currency, stock of, in the United States 1250 Prices: Debits to individual account, October 1225-1227 Discussion of 1127 Directors of Federal Reserve Banks, voting for, by member banks. 1178 Wholesale, abroad 1198-1210 Discount and open-market operations of Federal Reserve Wholesale, in the United States 1210-1214 Banks 1228-1233 Rates: Acceptances purchased— Acceptances purchased— During September 1231,1233 During September 1231 During three months ending September 1231 During three months ending September 1231 Agricultural paper held during September 1 1233 Bills discounted— Bills discounted— During September 1231 During September 1231 During three months ending September 1231 During three months ending September 1231 Discount- Collateral notes held 1231 In effect November 1 1250 Dollar exchange bills purchased 1231 In principal centers 1215 Earning assets held 1230 Earning assets held by Federal Reserve Banks 1230 Live-stock paper held 1233 Foreign exchange— Number of banks discounting during September 1229 October ; 1128 Rediscounts and sales of paper between Federal Reserve In belligerent, neutral, and silver-standard countries.. 1158-1162 Banks, July-September 1232 Rediscounts and sales of paper between Federal Reserve Banks.. 1233 Discount rates: Regulations of the Federal Reserve Board, series of 1920 1179-1194 In effect November 1 1250 Resources and liabilities: Prevailing in various centers 1215 Cuban banks 1166-1168 Dollar exchange, countries in which banks may accept drafts to Federal Reserve Banks 1235-1239 furnish „ 1175 Member banks in leading cities 1241-1247 Drugs and medicines, terms of sale in the industries 1155 Retail trade, index of 1195 Earnings and dividends of State bank and trust company mem- Review of the month 1123 bers 1251 Rulings of the Federal Reserve Board: Eddy, W. L., appointed assistant secretary of Board 1134 Eligibility of paper incident to cotton factorage business 1176 Edge Act, investment of surplus capital abroad under 1168-1173 Member banks required to vote for directors of Federal Re- Emerson, R. G., appointed assistant to Governor of Board 1134 serve Banks 1178 Failures, commercial, reported 1175 Secretary of the Treasury, address of, before American Bankers Federal advisory council, meeting of 1123 Association 1123,1125 Federal Reserve agents, meeting of 1123 Sliver: Federal Reserve Banks: Imports and exports of 1133,1249 Discount and open-market operations of 1228-1233 Price of 1128 Resources and liabilities of 1235-1239 State banks: Federal Reserve Board: Admitted to system 1174 Changes in staff of „ 1134 Earnings and dividends of members.... 1251 Conferences with Advisory Council, Federal Reserve agents, Sugar, production and price of, 1914-1920 1162,1163 and governors of Federal Reserve Banks 1123 Terms of sale in the principal industries 1149-1158 Regulations of, series of 1920 1179-1194 Agricultural implements 1149 Statement of, on credit for crop moving 1124 Chemicals , 1157 Federal Reserve notes: Drugs and medicines 1155 Federal Reserve agents' accounts 1240 Trade: Interdistrict movement of 1241 Foreign, index of . 1197 Fiduciary powers granted to national banks 1174 Physical volume of 1216-1224 Financing of the Treasury during October 1123 Retail, index of 1195 Foreign branch of National City Bank ol New York opened in Wholesale, reports on 1143 London 1174 Treasury financing during October 1123 Foreign exchange rates: Wholesale prices: October 1128 Abroad. 1198-1210 In belligerent, neutral, and silver-standard countries 1158-11 In the United States 1210-1214 Wholesale trade, reports on 1143 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

ALA. \ GA- 6 ( FEDERAL RESERVE DISTRICTS FEDERAL RESERVE BANK CITIES O FEDERAL RESERVE BRANCH CITIES The branches at Helena, Mont., and Oklahoma City, Okla., have been authorized by the Federal Reserve Board but are not yet open for business. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis